Roche Holding AG

Investor Presentation • Apr 11, 2003

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.

r

Roche Full year 2002

Dr. Erich Hunziker Chief Financial Officer

US Roadshow New York, March 26th

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

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

5

r The Roche strategy Actively managing our future - focusing on two pillars

Group financial results 2002 impacted by significant events and decisions

T h i l l t t e s a e c e e r g v
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• ï Two pillar strategy strengthened by Chugai acquisition
• ï Sale of Vitamins business

The operational level

• ï Profitability improvement at EBITDA and EBIT levels
• ï Progress of all key products / projects

The non-operational level

• ï Progress in re-building Roche finance
• ï Progress in major litigation cases

Group financials of 2002

Further improvement in operating results

	h i % c a n g e n			h i % c a n g e n
	C H F b i l l i o n	C H F	l l o c a	C H F b i l l i o n	C H F	l l o c a
l s a e s	2 9 7	2	8	2 6 5	3	9
E B I T D A	6 0	6 -	4	7 7	7	1 6
f i i t t o p e r a n g p r o	1 3	5 9 -	4 4 -	5 0	1 2	2 2
f l i i i t n a n c a n c o m e n e ,	4 5 -	-		0 7	2 5 -
f b f i t t p r o e o r e a e s x	3 2 -	-		5 7	4 -
i t n c o m e a e s x	0 8 -	1 9 -		1 7 -	2 1
i t n e n c o m e % f l a s o s a e s	4 0 - 1 4 -	-		3 8 1 4	1 7 -
	f l i i t t t n a n c a s a e m e n s			d a	d j t u s e

Net income 2002 impacted by significant events and decisions

The strategic levelï

The operational level

The non-operational level

	C H F b i l l i o n
G C i h i i t t a n o n g a r a n s a c o n u ï	0 5
I V F C d i & i t t t m p a r m e n v e s m e n ï	1 6 -
F C ( f ) V & b i t t u s n e s s a e r- a x ï	0 1
P h i t t a r m a r e s r c r n g u u ï	0 2 -
P i i V i i t r o v s o n s a m n c a s e ï	1 8 -
G h l l t e n e n e c e g a c a s e ï	0 8 -
I f l i i i t t m p a r m e n n a n c a a s s e s ï	2 5 -
T d i i i t t t a x e s a n m n o r y n e r e s s ï	1 1
l i i t t t t o a m p a c o n n e n c o m e	7 8 -

Items included in the financial statements /

excluded in the "adjusted results"

r

Operating performance 2002 (adjusted) Operating profit growth above 20 %* in all divisions

* local currency

Profitability 2002 (adjusted) Strong improvement of margins

Roche continues outpacing the industry Double digit growth four years in a row

source: company reports, Boston Biomedical Consultants, Roche analysis 1 excludes Applied Science 2 in local currencies

Strong growth in high margin areas

Monitoring and therapy delivery are converging

r 2002 Prescription* sales Strong growth in US, Japan and in key franchises

all growth figures are in local currencies * Roche, Genentech and Q4 sales of Chugai combined

2002 major growth drivers Multiple one-billion products

sales of top 10 products as % of Prescription

70%

r

all at local growth rates

r Proteins and antibodies Roche group - the second biggest biotech company

• ï Relatively high market entry barriers
• ï Strong profit generators
• ï 12 products with significant medical differentiation
• ï Relatively low promotional effort required

Patent expiry 2002 - 2006 Strong patent protected portfolio

Oncology - Roche the no. 1 company Outperforming the market

• ï Long patent protection
• ï Additional opportunities with Tarceva, Avastin, Bondronat, Pemtumomab
• ï Rich pipeline targeting major tumor types
  • ï Expected to further increase, from CHF > 5 billion (2002) to CHF 6 - 8 billion (2005)

Virology Strong commitment retained

Pegasys Rapid market share gains

Fuzeon

Active against current strains of drug resistant HIV-1

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

Roche R&D pipeline today Total of 65 NMEís including 9 opt-in opportunities

h 0 p a s e
R 1 0 6 7	de io p re ss n
R 1 2 9 5	hm t as a
R 1 4 3 8	d ia be 2 ty te p e s
R 1 4 3 9	d ia be 2 ty te p e s
R 1 0 4 4	d ia be 2 ty te p e s
R 1 3 4 5	l i d tu so m or s
R 1 4 5 4	l i d tu so m or s
R 1 4 7 9	H C V
R 1 4 8 4	s i tin str es nc on en ce
R 1 4 9 5	H I V
R 1 5 0 3	rhe id hri tis ato art um
R 1 5 1 6	mi a t tm t an ae rea en
R 1 1 8 5	C H V
R 1 5 3 3	A lz he im ís er
R 1 5 5 4	O A B
R 1 5 5 9	l i d tu so m or s
dr te ac c or on ar sy n om e u y
i fu l ( B ) t an ng a
i fu l ( B ) t an ng a

p	h a s	I e
R 7 0 1 ov	t er ac	ive b	la d	de r

R 9 4 4	H I V
R 1 0 6 8	is em es
R 1 2 0 4	de ion /a iet pre ss nx y
R 1 2 0 7	C H V
R 1 8 4 7	rhe id hri tis ato art um
R 1 4 9 2	l i d tu so m or s
R 1 0 5 5	br t c ea s an ce r
l ip le t m u	lo m y e m a
is te os op or os
br t c ea s an ce r
l i d ( A ) tu t so m or s
lu ( A ) t ng c an ce r
( i b io ic B ) t t an

Solla Tumors
y syndrome
gal (B)
gal (B)

R h i o c e p p	l i t t e n e s a u s	J o n a n u a r	3 1, 2 0 0 3 y
--------------------------------------	-----------------------------------------------------	--------------------------------------	----------------------------------

p	h	a s	e	l l

R411

R1536

macular degeneration

bone metastases

osteoporosis

rheumatoid arthritis

CHD

inflamm. bowel disease

solid tumors

psoriasis (B)

subarachnoid hemorrhage (Ax)

gastroparesis

post hepatectomy

eczema (B)

cardiovascular disease (S)

t as a
(al ha 1 a nis t) p go in nti str ess co ne nce	R 6 9 8
(in sul in s itiz er) ens di ab typ e 2 ete s	R 1 1 4 5
hy e m p se m a	R 1 9 5 4
(N K1 ) de ssi /an xie ty pre on
( T- ) H I V 1 2 4 9
(ne ion xt rat ge ne mia ) tre atm ent an ae
is em es
l i d tu so m or s
H P V
l la tra t re na ns p n
	hm

i i t t e s a o r g r n
R 4 8 4	Bo nvi va is ost eo po ros
R 6 9 8	( Fu ) H I V ze on
R 1 1 4 5 ( Ta	) o log rc ev a nc o y
R 1 9 5 4	(Pe ab) mt um om ria ova n c an cer
Av in ( lo ) t as on co g y
Ra iva t p
Xo la ir
ba hn i d he ha su ra c o m or r g e

phase III /

Non-operational level

Building Roche Finance into a platform for value creation

• ï Liquidity level to serve the strategic purposes of the core businesses Pharmaceuticals and Diagnostics
• ï Liquidity to be invested with risk profile in line with industry peers
• ï Decrease and re-finance debt to improve maturity profile and to strengthen balance sheet
• ï Tax structure and currency exposure to be brought in line with the focus on the operating business
• ï Corporate governance and transparency strengthened

Non-operational level

Unrealized losses of CHF 5.2 billion as an impairment

Roche policy until 31 Dec '02

ï Impairment based on significant financial difficulty of the issuer

Roche policy from 31 Dec '02

ï Impairment based on sustained (> 6 months) and substantial (> 25 %) drop of market value below cost

one-time impairment charge of CHF 5.2 billion in 2002

Asset allocation

total CHF 15.8 billion December 31, 2002

Operating performance (financial statements) Strong operating performance offset by special items

	2 0 0 2	2 0 0 1	h c a e n g		%
			C H F m	%	l l o c a
l s a e s	2 9 7 2 5 ,	1 2 9 6 3 ,	5 6 2 +	2 +	8 +
f l t c o s o s a e s	8 4 3 2 - ,	8 3 3 9 - ,	9 3 -	1 +
f i t g r o s s p r o	2 1 2 9 3 ,	2 0 8 2 4 ,	6 9 4 +	2 +
M & D	8 5 3 8 - ,	8 4 5 2 - ,	8 6 -	1 +
R & D	2 4 5 7 - ,	3 8 9 3 - ,	3 6 4 -	9 +
d i i i t t a m n s r a o n	1, 2 9 5 -	1, 2 1 9 -	6 7 -	6 +
i i t t a m o r z a o n	1, 5 2 0 -	1, 5 5 3 -	3 3 +	2 -
i i t m p a r m e n	1 3 -	1 8 -	5 +	2 8 -
C h i i t t u g a r a n s a c o n	5 8 6	-	5 8 6 +	-
P h i t t a r m a r e s r u c u r n g	1 5 4 -	7 7 7 -	6 2 3 +	8 0 -
V i i & F. C t a m n s
i i f t t t m p a r m e n o n e a s s e s	1, 6 5 0 -	-	1, 6 5 0 -	-
i i t v a m n c a s e	1, 7 7 0 -	7 6 0 -	1, 0 1 0 -	1 3 3 +
l l j m a o r e g a c a s e s	7 7 8 -	-	7 7 8 -	-
h t t o e r o p e x p e n s e s, n e	5 6 9 -	9 0 5 -	3 3 6 +	3 7 -
i f i t t o p e r a n g p r o	1 3 3 5 ,	3 2 4 7 ,	1 1 9 2 - ,	5 9 -	4 4 -
% f l a s o s a e s	4	1 1

r Financial income Difficult market environment has a strong impact

Net income (financial statements)

C H F m	2 0 0 2	2 0 0 1	h c a n g e
			C H F m	%
l s a e s	2 9 7 2 5 ,	2 9 1 6 3 ,	5 6 2 +	2 +
f i i t t o p e r a n g p r o	1 3 3 5 ,	3 2 4 7 ,	1 9 1 2 - ,	9 5 -
f i i l i t n a n c a n c o m e n e ,	6 6 3	1 5 1 5 ,	8 5 2 -	5 6 -
f l i i i i t t m p a r m e n n a n c a a s s e s	5 1 9 2 - ,	-	5 1 9 2 - ,	-
f i b f t t p o e o e a e s r r x	3 1 9 4 - ,	4 7 6 2 ,	7 9 5 6 - ,	-
i t n c o m e a x e s	8 3 9 -	1, 0 3 8 -	1 9 9 +	1 9 -
i % t t a x r a e n	2 6 -	2 2
i i i t t t m n o r y n e r e s s	4 1	3 4 -	7 5 +	-
d i i t a s s o c a e c o m p a n e s	3 4 -	7	1 4 -	-
i t n e n c o m e % f l o s a e s	4 0 2 6 - , 1 4 -	3 6 9 7 , 3 1	7 7 2 3 - ,	-

Operating performance (adjusted) 22 %* operating profit growth in LC, 12 % in CHF

	2 0 0 2		2 0 0 2 2 0 0 1 s v
	C H F m	l % s a e s			f x -
l s a e s	2 6 5 4 5 ,	1 0 0	8 7 4 +	3	9 % %
f l t c o s o s a e s	6 1 0 8 - ,	2 3 -	9 7 -		2 %
M D &	8 1 2 7 - ,	3 1 -	1 0 4 -		1 %
R & D	4 1 3 2 - ,	1 5 -	3 6 1 -		1 0 %
d i i i t t a m n s r a o n	1, 1 9 3 -	4 -	7 5 -		7 %
i i t t a m o r z a o n	1, 5 0 2 -	6 -	3 1 +	2 % -
i i t m p a r m e n	4 -	0	1 1 +	-7 3 %
h t t o e r o p e x p n e .,	1 5 4 -	2 -	3 3 8 +	-4 0 %
f i i t t o p e r a n g p r o	4 9 6 5 ,	1 9	5 2 7 +		1 2 %	2 2 %

* local currency

r

Net income (adjusted)

Improved operating result offset by lower financial income and higher taxes

CHF m

	2 0 0 2	1 2 0 0	h c a n g e C H F % m
l s a e s	2 6 5 4 5 ,	2 5 7 6 1 ,	7 8 4 +	3 +
i f i t t o p e r a n g p r o	4 9 6 5 ,	4 4 3 8 ,	5 2 7 +	1 2 +
f i i l i t n a n c a n c o m e n e ,	7 3 6	1 5 2 3 ,	7 8 7 -	5 2 -
f b f i t t p r o e o r e a x e s	0 1 5 7 ,	9 6 1 5 ,	2 6 0 -	4 -
i t n c o m e a x e s i % t t a x r a e n	1, 6 7 4 - 2 9	1, 3 8 6 - 2 3	2 8 8 -	2 1 +
i i i t t t m n o r y n e r e s s	1 8 2 -	3 8 -	1 4 4 -	3 9 7 +
d i i t a s s o c a e c o m p a n e s	3 7 -	2 5	6 2 -	-
i t n e n c o m e % f l o s a e s	3 8 0 8 , 1 4	6 2 4 5 , 8 1	7 5 4 -	1 7 -

Equity decrease of 28 % Driven by net loss and fx translation

31 Dec '01

31 Dec '02

Balance sheets Solid financing, lower equity ratio, fx impacts

The Roche strategy Managing the future on our own

ï Building on our own strength

• ñ Roche the no. 3 specialty care company globally
• ñ Roche the no. 2 Biotech company*
• ñ Roche the no. 1 Diagnostics company
• ñ distinctive research network across the globe
• ï Strong growing franchises
  • ñ Roche the no. 1 company in oncology
  • ñ Roche the only company with two major launches in virology
  • ñ Roche the no. 1 company in the US in transplantation

ï Rich NME portfolio and in-licensing activities support long term growth

Outlook

2003

• ï Double-digit growth in sales and operating profit for Group, and both the Pharmaceuticals and Diagnostics division in local currencies; each above market growth
• ï Stable operating profit margins for the Group as a whole. Tax rate around 29 %

... and after

• ï Improved operating profit margins: Group > 20 % in medium term; Pharmaceuticals approaching 25 % by the end of 2004; Diagnostics slightly better than 20 % by 2006
• ï By the end of 2004 conditions in place for a balanced financial income