r This presentation contains certain forward-looking statements. - PowerPoint PPT Presentation

r This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as “believes”, “expects”, “anticipates”, “projects”, “intends”, “should”, “seeks”, “estimates”, “future” or similar expressions or by discussion of strategy, goals, plans or intentions. Various factors may cause actual results to differ materially in the future from those reflected in forward-looking statements contained in this presentation among others: (1) pricing and product initiatives of competitors; (2) legislative and regulatory developments and economic conditions; (3) delay or inability in obtaining regulatory approvals or bringing products to market; (4) fluctuations in currency exchange rates and general financial market conditions; (5) uncertainties in the discovery, development or marketing of new products or new uses of existing products; (6) increased government pricing pressures; (7) interruptions in production; (8) loss of or inability to obtain adequate protection for intellectual property rights; (9) litigation; (10) loss of key executives or other employees; and (11) adverse publicity or news coverage. 2

r Pharmaceuticals Division William M. Burns Head of Pharmaceuticals Division 3

r Pharmaceuticals sales (adjusted) 2002 growth vs. growth vs. 2001 CHF m 2001 in CHF in local currencies Roche world wide Prescription group 1,2 17,754 3 % 10 % OTC 1,552 -7 % -2 % Pharmaceuticals 1 19,306 2 % 9 % 1 sales are adjusted to include the reclassification of sales to the Vitamins and Fine Chemicals Division 2 Roche, Genentech and Q4 sales of Chugai combined 4

r Pharmaceuticals score card 2002 Fulfilling the promises stated objectives actual 2002* • Sales growth mid-single digit 5 % / 9 % incl. Chugai • EBITDA margin stable up 1.3 pp to 31.0 % • Operating profit margin stable up 1.6 pp to 21.1 % • Product portfolio strengthening +19 NME's ! • Pegasys combo NDA filing US ! approval EU ! • Fuzeon clinical phase III results ! • MabThera launch of aNHL in EU continued single digit growth " (-16 %) • Xenical * local currency 1 new drug application of Pegasys in combination with Copegus in hepatitis C virus infection 2 aggressive non-Hodgkin's lymphoma 5

r Pharmaceuticals Further achievements 2002 • Significant product launches in EU – MabThera in aggressive non-Hodgkin's lymphoma (aNHL) – Valcyte in Cytomegalo virus (CMV) infection in AIDS patients – Xeloda in combination in metastatic breast cancer (mBC) – Pegasys in combination with Copegus in hepatitis C virus (HCV) patients • Kytril back on growth track • 25 licensing deals of which 9 product deals • More than 44 successful regulatory inspections of manufacturing sites 6

r 2002 profit growth - Pharmaceuticals (adjusted) Over 20 %* operating profit increase 15 % local CHF m 17 % 7 % CHF 8 % 5,982 5,694 EBITDA 5,603 5,256 4,082 21 % 3,838 23 % operating 11 % 3,674 13 % 3,389 profit -12 % -17 % 347 288 2002 2001 -9 % 244 285 -14 % Pharmaceuticals Prescription 1 OTC 2 1 Roche, Genentech and Q4 sales of Chugai combined 2 Roche OTC only (without Chugai OTC) * local currency 7

r Pharmaceuticals margin expansion (adjusted) Targeting towards 25 % by end of 2004 operating profit EBITDA as % of sales as % of sales 2002 31.0 21.1 Pharmaceuticals 2001 29.7 19.5 32.1 21.6 Prescription 1 19.7 30.6 15.7 18.6 OTC 2 20.9 17.2 1 Roche, Genentech and Q4 sales of Chugai combined 2 Roche OTC only (without Chugai OTC) * local currency 8

r 2002 major growth drivers Multiple one-billion products sales of top 10 products sales of top 10 products as % of Prescription 70% MabThera 2.3 (+48 %) Rocephin 1.5 (-2 %) 58 60% 55 NeoRec 1.2 (+32 %) 51 50% CellCept 1.2 (+18 %) Herceptin 40% 1.0 (+33 %) Roacc 0.9 (-16 %) 30% Xenical 0.8 (-16 %) 20% Nutr/Protr 0.5 (+19 %) Kytril 0.5 (+12 %) 10% Xeloda 0.4 (+82 %) 0% 2000 2001 2002 0 0.5 1 1.5 2 2.5 CHF billion all at local growth rates 9

r Proteins and antibodies Roche group - the second biggest biotech company • Relatively high market entry barriers % of Prescription sales 7 • Strong profit generators 36 % 6 • 12 products with significant medical differentiation 5 25 % CHF billion • Relatively low promotional effort 24 % 4 required 3 2 1 0 2000 2001 2002 sales 3.8 4.3 6.3 CHF billion 10

r Patent expiry 2002 - 2006 Strong patent protected portfolio 75% 69 56 50% 41 40 35 34 33 31 22 25% 16 18 18 15 13 13 12 12 10 5 2 0% BMS GSK Roche Amgen S-P Bayer Sanofi Pfizer MSD Wyeth Novartis Roche Lilly Abbott AZN BI Aventis J&J Pharmacia Esai Takeda source: IMS health MAT Sept 2002 11

r 2002 Prescription* sales Strong growth in US, Japan and in key franchises anemia transplant North +79 % +16 % 41 % America +10 % oncology 5 % virology +33 % 7 % + 3% 29 % 7 % 9 % Japan +82 % 9 % Western 33 % 33 % Europe +4 % 10 % cardiovascular +8 % other -5 % 9 % others +7 % infectious disease -6 % 8 % Latin America -11 % all growth figures are in local currencies * Roche, Genentech and Q4 sales of Chugai combined 12

r Oncology - Roche the no. 1 company Outperforming the market • Long patent protection MabThera • Additional opportunities with Herceptin Tarceva, Avastin, Bondronat, Xeloda Pemtumomab Kytril • Rich pipeline targeting major sales growth tumor types NeoRec (25 %) +33 % 1 • Expected to further increase, from Neupogen CHF > 5 billion (2002) to Roferon-A (60 %) CHF 6 - 8 billion (2005) Bondronat Furtulon 0 500 1000 1500 2000 2500 CHF m 2001 2002 1 local growth 13

r MabThera - ongoing success First choice in aggressive and indolent NHL new up • Growth drivers for both NHL to 3,500 CHF m 3'500 – Roche (ex-US) market penetration: iNHL ~20 %, aNHL ~25 % 3'000 – increase penetration – earlier and longer treatment +48 % 1 2'500 • Future growth / opportunities 2'000 – maintenance (data presented 1'500 Dec '02) and re-treatment – MabThera in RA (phase IIb data 1'000 expected 2004 / 2005) – move into first line iNHL (currently 3 rd 500 line), filing planned for 2006 0 – MabThera in CLL (phase III, filing 1999 2000 2001 2002 peak expected 2008) sales global (Roche & Genentech & Chugai) 1 local growth 14

r Herceptin Targeted on HER2, focused on living up to • Growth drivers 1,500 CHF m – increased testing 1'400 – expansion in 1 st line usage and 1'200 duration of treatment +33 % 1 • Future growth 1'000 – filing of 1 st line treatment Herceptin 800 + Docetaxol expected H2 '03 – Herceptin monotherapy in mBC 600 3-weekly regimen, filing expected 400 H2 '03 – development of adjuvant indication 200 by 2009 (interim data 2005) 0 1999 2000 2001 2002 peak sales global (Roche & Genentech & Chugai) 1 local growth 15

r Xeloda The powerful, yet gentle chemotherapy over • Growth drivers 1,500 CHF m 500 – global market penetration ~ 15 % for +82 % 1 mBC and mCRC 400 – steadily replace i.v. 5-FU/LV in mCRC – expanding use in mBC in combination (1 st line in combo with taxanes) 300 • Future growth 200 – development as 1 st line in mCRC – mCRC and mBC- 6 Phase III studies 100 initiated to establish Xeloda as combination therapy in adjuvant and neo-adjuvant treatment 0 1999 2000 2001 2002 peak sales global (Roche & Chugai) 1 local growth 16

r Virology Strong commitment retained sales Pegasys Tamiflu sales growth Viracept +3 % 1 Inivirase / Fortovase Hivid 0 100 200 300 400 500 2001 2002 1 local growth 17

r Pegasys and Copegus Strong clinical data • Pegasys sales of CHF 94 million in the 1 st year of launch • Associated with improved tolerability 1 – lower incidence of depression and flu-like symptoms • Shorter treatment duration associated with fewer SAE's and withdrawals 2 • Low-dose Copegus is associated with 2 : – fewer SAE's (24 weeks) – fewer Copegus dose modifications – fewer serious decreases in hemoglobin 1 Fried MW et al. N Engl J Med . 2002;347(13):975-82 2 Hadziyannis SJ. EASL Annual Meeting 2002 18

r Pegasys Rapid market share gains Brazil / Mexico / Switzerland 70 % Germany 50 % Austria 50 % Pegasys USA 23 % (new scripts) months from 2 3 4 5 6 launch 19

r Pegasys Strategic initiatives for future growth • Data for patients with normal ALT - to be presented end 2003 • Data in HIV / HCV co-infection - to be presented H1 '04 • Data in HBV - 2 studies - to be presented in 2004 • Pre-filled syringes for US 20

r Fuzeon Active against current strains of drug resistant HIV-1 • Targeted for ~ 30 % of patients (3 rd line) • Priced in Europe at Euro 52 per daily treatment • > 90 % of patients found self injection of Fuzeon "very easy", "easy" or "neutral" • Filings – US: September 17 th '02, EU: September 20 th '02 • Production capacity – end of '03: 20,000 production capacity; 12,000 - 15,000 patients – end of '04: 39,000 production capacity; 32,000 patients – end of '05: 39,000 production capacity; 39,000 patients • Expected approval H1 '03 21