Roche Holding AG

Investor Presentation • Feb 12, 2003

Turning innovation into customer benefit

Dr. Erich Hunziker Chief Financial Officer

Germany Roadshow Frankfurt, January 16th 2003

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This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ìbelievesî, ìexpectsî, ìanticipatesî, ìprojectsî, ìintendsî, ìshouldî, ìseeksî, ìestimatesî, ìfutureî 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.

Health - a basic need of mankind - now and in the future

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"Healthcare events" dominate or at least influence the life of most people

Who will pay for all this? The funds available are increasing only slowly

The value per healthcare event is rapidly decreasing

Roche sees the healthcare market splitting into a high value and a low value segment

Companies can be successful in both value segments

What is the critical factor to be successful with a high value strategy?

Our view: only if you create real (proven!) benefit for the customer, you can achieve a high price and therefore high value!

Innovation

Marketing power

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Innovation is the key driver in high value healthcare

What are the critical factors to be successful in innovation?

r Two ways to be successful in innovation Research focused or controlling the whole value chain

Where are the customers to finance progress in high value healthcare?

Roche wants to provide innovative healthcare solutions for mankind! During the next decade, to a large extent the customers in the USA, in Europe and in Japan will continue to finance progress in high value healthcare.

The Diagnostic Division

Creating value by providing "actionable health information"

r The Diagnostics value chain: a very strong starting position to extend industry leadership!

Industry leadership in absolute amounts in R&D investments

r Diagnostics Marketing & Distribution (M&D) Clear market leader with strong growth rate

sales growth* 2001 (in local currencies) 5 % 7 % 8 % 10 % 13 % 18 % 0%5%10%15%20%6 % 7 % 6 % 4 % 10 % 4 % 14 % 0%5%10%15%20%Roche Abbott J&J Bayer Beckman Coulter Dade Behring Market Growth

* Basis: Q4 2001Est. and actual 1999 / excludes Applied Sciences Source: Annual Reports, Boston Biomedical Consultants, Roche Analysis

market share* 2001 vs. 1999

r Diagnostics M&D: clear leadership position in Europe and the USA, strong growth to improve in Japan

Strong growth in high margin areas

Market expansion through innovation Redefining the diagnostic market

database management (e.g. Mellibase)

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connectivity (e.g. compact, IR)

treatment

treatment

monitoring

(e.g.diabetes,

selection

efficacy

disease

CHF,

(e.g.

(e.g.

p450)

HCV)

HIV)

services (e.g. MyDoc)

core IVD business

onco blood screening logy (e.g.HPV) genetics/ proteomics (e.g. CF) predisposition (e.g. RA)

screening

monitoring

The Pharmaceuticals Division

Creating value by global leadership in selective therapy areas (e.g. oncology)

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Pharmaceuticals value chain: a solid starting platform to successfully compete in the top ten of the global healthcare industry on an on-going basis

Roche Pharma R&D expenditure 2001 In the top 10 of the industry

Roche R&D: strong in-house competence tapping the potential of science around the globe

Focus on seven therapeutic areas

C h i g a u	G h t e n e n e c	P b e n e r g z	N l t e u y	B l a s e	P l A l t a o o
	O n c o	C S N
f I l n a m	i t m a o n				I f l n a m m
			M t e a	b l i o c	G i t e n o
					i r n a r u y
V l a s c u a r				V l a s c u a r	V l i r a
					d i s e a s e s
J a p a n	U S A W t e s -	G e r m a n y	U S A E t a s -	C H	U S A W t e s -

r Openness for external innovation: over 1600 opportunities analyzed since beginning 2002

65 people in pharma plus 15 in diagnostics active in in-licensing

Roche Pharma biologics production Strong in-house competence positions Roche amongst the top three in the industry

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r Roche Pharma Marketing & Distribution Differentiated starting position in the "Specialist" and the "Primary Care / General Practitioner" segments

The borderline between the two segments varies from medical school/ country to medical school/country and may well change in the future

M&D specialist field: with bringing Chugai into the Group, Roche is a top 10 company in all three major global markets

transaction)

M&D general practitioner: Short-term, Roche has a clear challenge to tap this potential, specially in the USA

Why does Roche not exit this business? With Bonviva (osteoporosis) in phase III and four promising compounds in phase II (asthma, insulin sensitizer, depression, stress incontinence) it would be wrong to go for short-term profits GP GP GP M+D USA JAPAN (after Chugai EUROPE

Prescription profitability Step by step towards 25 %

Oncology franchise Young brands driving growth

• ï The only company to market three new products which improve patient survival
  • ñ MabThera/Rituxan
  • ñ Herceptin
  • ñ Xeloda

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• ï Oncology sales* expected to increase from CHF 4 billion (2001)1 to CHF 6 - 8 billion (2005)
• ï Building on our number 1 position in oncology
• 1) Sales from MabThera/Rituxan, Herceptin, Kytril, Xeloda, Neupogen, NeoRecormon (25 %), Roferon A (60%), Bondronat, Furtulon
• 2) local growth

Virology franchise Two major launches in progress / upcoming

ï Roche, the first company to launch a protease inhibitor (Invirase, 1995)

• ï Roche, the first company to launch a fusion inhibitor (Fuzeon (T-20), expected launch Q1 ë03)
• ï Roche retains a strong commitment to virology
• ï Virology: a driver for the future

phase 0 phase I phase ll Roche R&D pipeline today Total of 51 NMEís including 3 NMEís which Genentech will commercialize alone

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inflamm. bowel disease (G)

cardiovascular disease (S)

phase III / registration

Roche pipeline status on September 30, 2002

Diagnostics and Pharmaceuticals under one roof: where is the value added ?

Two independent businesses with potential interaction along the value chain

Two high tech businesses joining forces where it adds value

Exploiting genetics and genomics Internally and externally

Pharma - Diagnostic synergies An example: Virology

Research

ï Slower degradation by peptidases compared to non-branched forms

Diagnostics

• ï Monitoring virological response allows prediction of therapy outcome
• ï Hepatitis C genotyping allows therapy optimization

The Roche Group

Coming back to the top 10 of the healthcare industry

2002 building the future, overcoming the challenges of the past

Industry consolidation The only way to create value?

Roche is actively shaping its future ... by disposing of non-core businesses

Starting point 1990 ... CHF 9.7 billion

Sales and spin-off's

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Kontron Medi-Physics Feeds Gynecological products RBL ABX Medi-Lab Rolic DePuy (1998) MFA Actelion Novuspharma Fragrances & Flavours; Givaudan (2000) Basilea BioXell Vitamins & Fine Chemicals (2002)*

* We expect to close the transaction in Q1 2003.

Roche is actively shaping its future Ö through acquisitions as well

Genentech (1990) Nicholas FDO PCR (1991) CompuChem Fisons Syntex (1994) MFA OTC F/I/RP Tastemaker Boehringer Mannheim (1997) AVL Chugai (2002)

Being a focussed and leading healthcare company with two high-tech pillars in pharma and diagnostics developing innovative solutions for people's unmet medical needs.

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We Innovate Healthcare