Roche Holding Ltd · SIX:RO

Roche — HY 2020 Earnings Presentation

76 slides from Roche's earnings presentation, Jul 23, 2020

  1. Slide 1: Roche logo

  2. Slide 2: Roche HY 2020 results

    Roche HY 2020 results Basel, 23 July 2020

  3. Slide 3: Forward-looking statements

    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, among other things, str

  4. Slide 4: Group

    Group Severin Schwan Chief Executive Officer

  5. Slide 5: HY 2020 performance, Outlook

    HY 2020 performance Outlook 5

  6. Slide 6: Significant COVID-19 impact

    Significant COVID-19 impact Pharmaceuticals • Significant decline in May due to delay of HCP visits, recovering since June • Launch of NMEs, readouts & pivotal trial starts largely on track • Continued good growth momentum of new products (+37%), offsetting biosimilar erosion Diagnostics • Increase

  7. Slide 7: HY 2020: Sales growth despite COVID-19

    HY 2020: Sales growth despite COVID-19 HY 2020 HY 2019 Change in % CHFbn CHFbn CHF CER Pharmaceuticals Division 23.2 24.2 -4 1 Diagnostics Division 6.1 6.3 -3 3 Roche Group 29.3 30.5 -4 1 CER=Constant Exchange Rates 7

  8. Slide 8: Q2 2020: Heavily impacted by COVID-19

    Q2 2020: Heavily impacted by COVID-19 16% 14% 13% 12% 10% 9% 9% 8% 8% 7% 7% 7%7% 7% 6% 6%6% 6% 6% 6% 6% 6% 8% 6% 6% 6% 5% 4% 5% 5% 5% 4% 2% 4% 4% 4% 4% 4% 3% 3% 2% 0% -2% -4% -4% -6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 12 12 12 12 13

  9. Slide 9: HY 2020: Group sales - May heavily impacted by COVID-19

    HY 2020: Group sales - May heavily impacted by COVID-19 Recovery started in June Pharmaceuticals • Impact in May driven by patients delaying appointments (mainly but not only chronic diseases) • Recovery in the last weeks of the quarter Diagnostics • Impact in April/May driven by decline in routine

  10. Slide 10: Good sales growth in International and Europe

    HY 2020: Good sales growth in International and Europe New products with strong momentum -2% +14% CHFbn CER growth CHFm Diagnostics Pharma -4% nal US HY values reported in CHFm and variances in CERm; 1 Erivedge, Perjeta, Kadcyla, Gazyva, Esbriet, Cotellic, Alecensa, Tecentriq, Ocrevus, Hemlibra, Xof

  11. Slide 11: New products with strong momentum

    New products with strong momentum – accelerated rejuvenation CHFm % of Pharma Sales Pharma sales mix 12,000 HY 2019 10,500 38% 28% 9,000 42% 7,500 28% 30% 6,000 20% HY 2020 4,500 14% 3,000 32% 38% 1,500 0 HY 2017 HY 2018 HY 2019 HY 2020 30% Erivedge Perjeta Kadcyla Gazyva Esbriet New products launch

  12. Slide 12: Roche significantly advancing patient care

    Roche significantly advancing patient care Pivotal trials on track despite difficult environment Pivotal trial recruitment finished in HY1 2020 ipatasertib 1L TNBC (Ph III: IPATunity130) risdiplam SMA type 1/2/3 (Ph II: JEWELFISH) gantenerumab Alzheimer’s disease (Ph III: GRADUATE 1 & 2) tominersen

  13. Slide 13: Core OP and Core EPS maintained at high levels

    HY 2020: Core OP and Core EPS maintained at high levels Core operating profit Core EPS Operating free cash flow 40.6% 40.2% 28.6% % of sales 39.7% 24.6% 17.2% CHFbn +2% at CER CHF +2% at CER CHFbn -26% at CER 11.12 12.4 10.44 11.8 8.0 7.5 5.0 9.84 11.2 HY 2018 HY 2019 HY 2020 HY 2018 HY 2019 HY 2020

  14. Slide 14: HY 2020 performance, Outlook

    HY 2020 performance Outlook 14

  15. Slide 15: Major pipeline advances and upcoming launches in HY2 2020

    Major pipeline advances and upcoming launches in HY2 2020 Pharma Diagnostics 3 Upcoming NME launches 4 Upcoming key launches • risdiplam in SMA • cobas® SARS-CoV-2 & Influenza A/B for use on the • Enspryng (satralizumab) in NMOSD cobas® Liat® System • pralsetinib* in RET+ NSCLC; Thyroid cancer • cob

  16. Slide 16: 2020 outlook confirmed

    2020 outlook confirmed Further growing top and bottom line Group sales growth1 • Low- to mid-single digit Core EPS growth1 • Broadly in line with sales growth Dividend outlook • Further increase dividend in Swiss francs 1 At Constant Exchange Rates (CER); based on the current assessment of the COVID

  17. Slide 17: Pharmaceuticals Division

    Pharmaceuticals Division Bill Anderson CEO Roche Pharmaceuticals

  18. Slide 18: Replace and extend the business: Further milestones achieved

    Replace and extend the business: Further milestones achieved Entering new Replace/extend existing businesses Achievements Q2 2020 franchises Oncology: Entering new franchises Gazyva, Tecentriq (mUC, TNBC, Tecentriq: US approval in 1L HCC (with Avastin) Venclexta, SCLC, HCC, mM), ipatasertib: Positiv

  19. Slide 19: COVID-19 impact in May, but recovery starting in June

    COVID-19 impact in May, but recovery starting in June • Broad COVID-19 impact due to missed patient visits and postponed new patient starts (e.g. breast cancer franchise, hematology franchise, neuroscience franchise) • Immunology franchise holds up well with strong adherence to therapy by patients w

  20. Slide 20: Pharmaceuticals Division sales

    HY 2020: Pharmaceuticals Division sales Growth in International and Europe HY 2020 HY 2019 Change in % CHFm CHFm CHF CER Pharmaceuticals Division 23,202 24,194 -4 1 United States 12,464 13,370 -7 -4 Europe 4,190 4,221 -1 5 Japan 1,908 1,988 -4 -2 International 4,640 4,615 1 11 CER=Constant Exchange

  21. Slide 21: Pharma profitability maintained at high level

    HY 2020: Pharma profitability maintained at high level 2020 CER growth CHFm abs. CER vs PY Sales 23,202 +193 1% Royalties & other op. inc. 1,070 -150 -12% Cost of sales -4,175 +620 -13% M&D -3,266 -7 0% R&D -5,077 -358 7% G&A -793 -79 11% Core operating profit 10,961 +220 2% Core OP in % of sales 47

  22. Slide 22: New medicines compensating for biosimilar erosion

    HY 2020: New medicines compensating for biosimilar erosion Tecentriq +74% Hemlibra +94% Ocrevus +25% Actemra / RoActemra +36% Perjeta +17% Kadcyla +39% Alecensa +34% Gazyva +35% Polivy >500% Esbriet +11% TNKase / Activase +4% Xofluza +357% Xolair +2% Lucentis -19% US Avastin -18% Europe MabThera -23

  23. Slide 23: Oncology sales -6% with COVID-19 impact in May

    HY 2020: Oncology sales -6% with COVID-19 impact in May YoY CER growth Perjeta (+17%) HER2 franchise Herceptin -7% HER2 franchise Kadcyla (+39%) • Kadcyla and Perjeta with strong global uptake in adjuvant BC Avastin Avastin -18% Avastin franchise Polivy (>500%) Hematology -15% • Biosimilar erosion i

  24. Slide 24: HER2 franchise: Growth for Perjeta and Kadcyla

    HER2 franchise: Growth for Perjeta and Kadcyla, Phesgo approved CHFm YoY CER growth 4,000 HER2 franchise Q2 update 3,500 • COVID-19 impact due to lower BC screening rates • Perjeta (+12%): Global growth driven by eBC (APHINITY) and 3,000 +8% +3% early uptake in China +7% 2,500 -12% • Kadcyla (+26%):

  25. Slide 25: HER2 franchise: Phesgo US approval

    HER2 franchise: Phesgo US approval Significantly reduced healthcare costs and resource use • Phesgo (PH FDC SC) achieves equivalent serum concentrations as IV at cycle 7 in neoadjuvant HER2+ eBC • 85% of patients prefer Phesgo compared to standard IV administration • US approval achieved in June; fi

  26. Slide 26: HR+/HER2- franchise: Potentially best in class SERD

    HR+/HER2- franchise: Potentially best in class SERD (RG6171) Strong efficacy as a single agent or in combination Selective ER degrader (SERD) Ph Ib results: Tumor responses RG6171 +/- palbociclib • 3rd generation oral SERD • Well-tolerated; strong efficacy as single agent or in combination in pre-tr

  27. Slide 27: Hematology franchise: Growth from Venclexta, Gazyva and Polivy

    Hematology franchise: Growth from Venclexta, Gazyva and Polivy CHFm YoY CER growth Hematology franchise Q2 update 2,000 CD20 franchise +3% • MabThera/Rituxan (-32%): Biosimilar erosion in US as expected -11% and market contraction due to COVID-19 1,500 -6% • Gazyva (+23%): Growth driven by 1L CLL (C

  28. Slide 28: Hematology franchise: CD20 x CD3 program in NHL progresses

    Hematology franchise: CD20 x CD3 program in NHL progresses Improving the standard of care in DLBCL and FL Glofitamab in R/R DLBCL Mosunetuzumab in R/R FL Tumor responses in 2/3L+ DLBCL Tumor responses in 3L+ FL • The ≥10mg cohorts in R/R DLBCL showed an ORR of 49.4% and a • Pooled data from 2.8mg to

  29. Slide 29: Tecentriq overview: Growth driven by first-in-class indications

    Tecentriq overview: Growth driven by first-in-class indications 1L HCC approved in the US; filed in EU/China Tecentriq Q2 update CHFm YoY CER growth Lung franchise (NSCLC, SCLC) • US/EU/Japan: Growth driven by 1L SCLC and 1L NSCLC 800 • US: Approval in 1L PDL1+ NSCLC achieved 700 +99% +54% +136% • C

  30. Slide 30: Lung franchise: Tiragolumab + Tecentriq in 1L NSCLC

    Lung franchise: Tiragolumab + Tecentriq in 1L NSCLC Meaningful efficacy improvement and excellent safety Anti-TIGIT antibody (tiragolumab) Randomized Ph II (CITYSCAPE): Tiragolumab + Tecentriq in 1L NSCLC ORR PFS: PD-L1 TPS ≥ 50% • Fully human IgG1/kappa Ab with • Tira + Tec showed clinically meanin

  31. Slide 31: Immunology franchise: Overall stable sales

    Immunology franchise: Overall stable sales CHFm YoY CER growth Immunology Q2 update 2,500 +7% Esbriet (+2%) +7% +2% • Growth in mild/moderate segments; remains EU market leader 2,000 +8% Actemra (+40%) 1,500 • Sales positively impacted by COVID-19 Xolair (+1%) 1,000 • Remains leader in biologics ast

  32. Slide 32: Neuroscience franchise: Ocrevus in MS

    Neuroscience franchise: Ocrevus in MS Market leadership in US continues with 21% total patient share1 CHFm YoY CER growth Ocrevus Q2 update 1,250 • COVID-19 impact in April/May due to reduced new patient +55% +38% starts and delayed dosing for existing patients +48% +12% 1,000 +59% • Strong recovery

  33. Slide 33: Neuroscience franchise: Risdiplam in type 1/2/3 SMA

    Neuroscience franchise: Risdiplam in type 1/2/3 SMA Compelling benefit/risk profile in infants, children, and adults SMN2 splicing modifier FIREFISH part 2 results in type 1 SMA confirm highly competitive profile • Proven efficacy in infants, children, and adults • Durably increases SMN protein thro

  34. Slide 34: Hemophilia A franchise

    Hemophilia A franchise Hemlibra with 23% total US patient share after 33 months CHFm YoY CER growth Hemophilia Q2 update 600 +146% • US: Gaining market share in non-inhibitors; patients on 550 500 +59% treatment stay on treatment, COVID-19 impact due to +313% 450 postponed new patient starts >500% 4

  35. Slide 35: Ophthalmology franchise: Building a global PDS platform

    Ophthalmology franchise: Building a global PDS platform Positive Ph III results in nAMD to be discussed at ASRS Port Delivery System (PDS) Phase III (ARCHWAY) results in nAMD: Mean BCVA Change From Baseline • Refillable intraocular implant using proprietary needle assembly and customized formulation

  36. Slide 36: New products account for ~40% of Pharma sales

    New products account for ~40% of Pharma sales* 4 NME approvals in 2020: ENSPRYNG and PHESGO approved in Q2 CHFm % of Pharma Sales* 5,000 4,500 39% 4,000 29% 3,500 3,000 2,500 21% 2,000 15% 1,500 1,000 500 0 ** Q2 17 Q2 18 Q2 19 Q2 20 Erivedge Perjeta Kadcyla Gazyva Esbriet Cotellic Alecensa Tecentri

  37. Slide 37: Roche Pharma Day 2020

    Roche Pharma Day 2020 Strategic business outlook and late stage pipeline update Virtual Roche Pharma Day 2020 Senior management presenting: • Bill Anderson, CEO Pharma • Teresa Graham, Head of Global Product Strategy Monday, 14 September 2020 • Levi Garraway, Chief Medical Officer and Head Global Pr

  38. Slide 38: 2020: Key late-stage news flow

    2020: Key late-stage news flow* Virtual IR Event ASRS Roche Pharma Day Monday, 27 July Monday, 14 September 4:30pm-5:30pm CEST 2pm-5pm CEST * Outcome studies are event-driven: timelines may change 38

  39. Slide 39: Diagnostics Division

    Diagnostics Division Thomas Schinecker CEO Roche Diagnostics

  40. Slide 40: Diagnostics Division sales

    HY 2020: Diagnostics Division sales Growth driven by Molecular Diagnostics offsetting decline in routine testing due to COVID-19 HY 2020 HY 2019 Change in % CHFm CHFm CHF CER Diagnostics Division 6,079 6,275 -3 3 Centralised and Point of Care Solutions 3,181 3,762 -15 -10 Molecular Diagnostics 1,558

  41. Slide 41: Diagnostics Division regional sales

    HY 2020: Diagnostics Division regional sales Growth driven by North America and EMEA Japan North America +1% +13% EMEA1 ~4% of divisional sales ~29% of divisional sales +5% ~40% of divisional sales Asia Pacific Latin America -9% +6% ~22% of divisional sales ~6% of divisional sales 1 Europe, Middle E

  42. Slide 42: Diagnostics Division highlights

    HY 2020: Diagnostics Division highlights Growth driven by Molecular Diagnostics YoY CER growth Centralised and Point of Care -10% • Immunodiagnostics (-12%) Solutions • Clinical Chemistry (-14%) • Virology (+115%) Molecular 1 +61% • LightMix Systems (+171%) Diagnostics • POC MDx (+56%) Diabetes • Bl

  43. Slide 43: Diagnostic Division Core operating profit growing at +9%

    HY 2020: Diagnostic Division Core operating profit growing at +9% 2020 CER growth CHFm abs. CER vs PY Sales 6,079 +213 3% Royalties & other op. inc. 27 -5 -14% Cost of sales -2,904 -138 5% M&D -1,249 +80 -6% R&D -710 -49 7% G&A -221 -9 4% Core operating profit 1,022 +95 9% Core OP in % of sales 16.8

  44. Slide 44: SARS-CoV-2 diagnostics portfolio

    SARS-CoV-2 diagnostics portfolio Comprehensive portfolio launched in record time Clinical Labs Point of Care Molecular • cobas® SARS-CoV-2 solutions • TIB MOLBIOL LightMix® Modular SARS-CoV-2 • cobas® SARS-CoV-2 & In development Influenza A/B • cobas® Flu A, Flu B and SARS-CoV-2 In development Serol

  45. Slide 45: Elecsys SARS-CoV-2 serology solutions

    Elecsys® SARS-CoV-2 serology solutions Broadening the portfolio for SARS-CoV-2 antibody testing Elecsys® Anti-SARS-CoV-2 Elecsys® In-solution double-antigen sandwich • Immunoassay detecting antibodies to nucleocapsid protein (anti-N) • Excellent performance confirmed in internal as well as external

  46. Slide 46: Global launch of cobas prime Pre-analytical System

    Global launch of cobas® prime Pre-analytical System* Accelerating speed and efficiency in the molecular lab • First-of-its-kind solution for multiple sample types cobas® prime cobas® 6800 • End-to-end automation for testing consolidation • Reduces manual steps in molecular labs by 86%** • Reduces ma

  47. Slide 47: PD-L1 (SP263) and HER2 Dual ISH digital pathology algorithms

    PD-L1 (SP263) and HER2 Dual ISH digital pathology algorithms* Improving the speed and accuracy of cancer diagnosis SCANNING PATHOLOGIST IMAGE WORKFLOW ANALYSIS VENTANA DP 200 NAVIFY Digital uPath Image Analysis Pathology Algorithms • The first next generation CE-IVD algorithms utilizing whole slide

  48. Slide 48: Key launches 2020

    Key launches 2020 Area Product Description Market1 Instruments/ Workflow cobas® prime Next generation pre-analytical platform to support cobas® 6800/8800 Systems CE Devices Diabetes Care Accu-Chek Solo Diabetes Manager Integration of the Accu-Chek Guide test strip technology into the Accu-Chek Solo

  49. Slide 49: Finance

    Finance Alan Hippe Chief Financial Officer

  50. Slide 50: HY 2020 results, Focus on Cash, Outlook

    HY 2020 results Focus on Cash Outlook 50

  51. Slide 51: HY 2020: Highlights

    HY 2020: Highlights Business • Sales growth of +1%1 and Core operating profit up +2%1 • Core EPS growth +2%1 Cash flow • Operating Free Cash Flow of CHF 5.0bn, -26%1 lower due to higher net working capital and higher investments in intangible assets • Net debt slightly up by CHF 0.4bn vs. Jun 30th 2

  52. Slide 52: HY 2020: Group sales - May heavily impacted by COVID-19

    HY 2020: Group sales - May heavily impacted by COVID-19 Recovery started in June Pharmaceuticals • Impact in May driven by patients delaying appointments (mainly but not only chronic diseases) • Recovery in the last weeks of the quarter Diagnostics • Impact in April/May driven by decline in routine

  53. Slide 53: HY 2020: Group performance

    HY 2020: Group performance Sales up by +1% and Core EPS up by +2% HY 2020 HY 2019 Change in % CHFm CHFm CHF CER Sales 29,281 30,469 -4 1 Core operating profit 11,766 12,363 -5 2 as % of sales 40.2 40.6 Core net income 9,443 9,896 -5 3 as % of sales 32.2 32.5 Core EPS (CHF) 10.44 11.12 -6 2 IFRS net

  54. Slide 54: HY 2020: Core EPS development

    HY 2020: Core EPS development Operations growth is driver for Core EPS growth, more than compensating lower gains on product disposals CHF +1.9% +1.3 p +3.6 p -2.6 p -0.2 p -0.2 p 10.98 11.18 H1 2019 Gains product Gains ROOI Gains Gains equityequity securities Resolution Resolution tax tax disputes

  55. Slide 55: HY 2020: Group operating performance

    HY 2020: Group operating performance Core operating profit growth ahead of sales growth 2020 CER growth CHFm abs. CER vs PY Sales 29,281 +406 1% Royalties & other op. inc. 1,097 -154 -12% Cost of sales -7,079 +484 -6% M&D -4,515 +73 -2% R&D -5,787 -407 7% G&A -1,231 -123 11% Core operating profit 11

  56. Slide 56: Royalties and other operating income

    HY 2020: Royalties and other operating income Decline driven by lower income from product disposals CHFm +47 +42 +107 -75 1,282 -306 Royalties and other operating income decreased by -12% at CER 1,097 Royalty income Out-licensing Other operating Gains/losses HY 2019 Cabilly others income income disp

  57. Slide 57: Core OP and margin maintained at high levels

    HY 2020: Core OP and margin maintained at high levels % of sales 47.2% 47.5% 47.2% 39.7% 40.6% 40.2% +0.5%p¹ +0.4%p¹ +2%¹ +2%¹ 17.1% 17.0% 16.8% CHFm 12,363 11,766 11,500 11,162 10,961 +0.9%p¹ 10,301 +9%¹ 1,074 1,064 1,022 2018 2019 2020 Roche Group Pharma Division Diagnostics Division 1 At CER=Cons

  58. Slide 58: Core net financial result

    HY 2020: Core net financial result Improvement driven by lower interest expenses CHFm • Net financial result improved by +3% at CER • Interest expenses1 decreased by +30% at CER -476 -451 +104 +15 -23 -26 -45 HY 2019 Equity Net interest Interest All other, HY 2020 FX G/L securities income expenses1

  59. Slide 59: Group Core tax rate

    HY 2020: Group Core tax rate Stable tax rate with similar impacts from resolution of tax disputes in HY 2020 and HY 2019 Figures in % -0.2 16.7 16.5 HY 2019 Decrease in HY 2020 Core tax rate 59

  60. Slide 60: Non-core items

    HY 2020: Non-core items Non-core operating expenses lower than in 2019 driven by the Accutane provision release 2019 2020 Change in % CHFbn CHFbn CHFbn CHF CER Core operating profit 12.4 11.8 -0.6 -5 +2 Global restructuring plans -0.5 -0.3 +0.2 Amortisation of intangible assets -0.7 -0.8 -0.1 1 Impa

  61. Slide 61: HY 2020 results, Focus on Cash, Outlook

    HY 2020 results Focus on Cash Outlook 61

  62. Slide 62: Operating free cash flow and margin

    HY 2020: Operating free cash flow and margin 36.2% 33.9% % of sales 28.6% 24.6% 23.5% 17.2% -9.6%p¹ -6.7%p¹ 6.8% -0.7% -6.1% CHFm 8,042 7,900 8,191 7,508 +6.6%p¹ -28%¹ -26%¹ 5,454 5,036 429 2018 2019 2020 -¹ 2019 -44 -380 Roche Group Pharma Division Diagnostics Division 1 At CER=Constant Exchange Ra

  63. Slide 63: Operating free cash flow

    HY 2020: Operating free cash flow Lower than PY (-26%) driven by higher NWC and higher IA investments CHFm -657 -1,094 -111 -610 7,508 OFCF decreased by -26% / -1,949m at CER 5,036 OP net of Inv. in Inv. in HY 2019 cash adjust. NWC HY 2020 PP&E1 IA CER=Constant Exchange Rates; OP=operating profit; N

  64. Slide 64: Group net debt up vs. YE 2019

    HY 2020: Group net debt up vs. YE 2019 Driven by dividends paid Free Cash Flow CHF 3.3bn CHFbn vs. 5.3bn in 2019 -1.7 +5.0 -2.5 [HY19: +7.5] -9.6 -8.8 [HY19: -8.4] Taxes -1.2 Dividends paid -7.8 Treasury -0.5 M&A & Alli. trans. -0.7 Trans. own eq. instr. -1.4 Curr. Transl. & Other +0.3 Operating Div

  65. Slide 65: Balance sheet 30 June 2020

    Balance sheet 30 June 2020 Equity ratio at 43% (30 June 2019: 39%; 31 Dec 2019 43%) % change in CER % change in CER CHFbn vs 31 Dec 2019 vs 31 Dec 2019 83.1 -1% 83.1 -1% Cash and 80.4 80.4 marketable 11.9 6.3 -46% 24.1 22.5 securities 14% 8% Current -5% 29% 28% 19.4 21.4 +14% liabilities Other 23% 2

  66. Slide 66: HY 2020 results, Focus on Cash, Outlook

    HY 2020 results Focus on Cash Outlook 66

  67. Slide 67: High currency impact expected in 2020

    High currency impact expected in 2020 CHF / USD Average -3% -3% -3% -4% YTD 2019 1.00 1.00 0.99 1.00 Assuming the 30 June 2020 exchange rates remain stable until end of 2020, 0.97 0.97 0.96 0.96 2020 impact 1 is expected to be (%p): Assumed average YTD 2020 Q1 HY Sep FY 0.97 0.97 0.96 0.97 0.97 0.95

  68. Slide 68: 2020 outlook confirmed

    2020 outlook confirmed Further growing top and bottom line Group sales growth1 • Low- to mid-single digit Core EPS growth1 • Broadly in line with sales growth Dividend outlook • Further increase dividend in Swiss francs 1 At Constant Exchange Rates (CER); based on the current assessment of the COVID

  69. Slide 69: Changes to the development pipeline

    Changes to the development pipeline Q2 2020 update New to phase I New to phase II New to phase III New to registration 5 NMEs: 3 NMEs: (transitioned from phase I) 1 AI: 2 AIs: RG6279 PD1-IL2v - solid tumors RG7774 NME - retinal disease RG1569 Actemra+remdesivir - COVID-19 RG7421 Cotellic+Zelboraf+Te

  70. Slide 70: Roche Group development pipeline

    Roche Group development pipeline Phase I (43 NMEs + 14 AIs) Phase II (20 NMEs + 12 AIs) RG6026 glofitamab / combos heme tumors RG7769 PD1 x TIM3 solid tumors RG6180 iNeST* + pembrolizumab malignant melanoma RG6058 tiragolumab combos heme & solid tumors RG7802 cibisatamab ± T solid tumors RG6357 SPK-

  71. Slide 71: Roche Group development pipeline

    Roche Group development pipeline Phase III (8 NMEs + 30 AIs) Registration (5 NMEs + 11 AIs) RG6013 Hemlibra mild to moderate hemophilia A RG7446/ Tecentriq bTMB-high RG6264 Phesgo 1 Perjeta + Herceptin FDC SC HER2+ BC 1L NSCLC tiragolumab + T + chemo 1L SCLC RG6268 or entrectinib ROS1+ Rozlytrek (en

  72. Slide 72: NME submissions and their additional indications

    NME submissions and their additional indications Projects in phase II and III Port Delivery System RG6321 with ranibizumab wAMD tiragolumab + rh pentraxin-2 etrolizumab RG7413 RG6058 Tecentriq RG6354 PRM-151 ulcerative colitis 1L PD-L1+ cervical ca IPF Xofluza ✓ tiragolumab + TLR7 ago (3) rh pentrax

  73. Slide 73: AI submissions for existing products

    AI submissions for existing products Projects in phase II and III New Molecular Entity (NME) Immunology Neuroscience Actemra Additional Indication (AI) Infectious Diseases Ophthalmology RG1569 Oncology / Hematology CardioMetabolism Other COVID-19 pneumonia Actemra + remdesivir RG1569 COVID-19 pneumo

  74. Slide 74: Major pending approvals 2020

    Major pending approvals 2020 US EU China Japan-Chugai satralizumab Rozlytrek (entrectinib) CellCept Kadcyla RG6168 NMOSD RG6268 ROS1+ NSCLC RG99 lupus nephritis RG3502 HER2+ eBC adj Filed Aug 2019 Filed Jan 2019 Filed Aug 2018 Filed Aug 2019 Xolair Rozlytrek (entrectinib) Avastin Tecentriq +Avastin

  75. Slide 75: Major granted approvals 2020

    Major granted approvals 2020 US EU China Japan-Chugai Venclexta+Gazyva Polivy Kadcyla Rozlytrek (entrectinib) RG7601 1L CLL RG7596 r/r DLBCL RG3502 HER2+ eBC RG6268 ROS1+ NSCLC Mar 2020 January 2020 Jan 2020 Feb 2020 Tecentriq + Avastin Venclexta+Gazyva Tecentriq + chemo Alecensa RG7446 1L HCC RG760

  76. Slide 76: Doing now what patients need next

    Doing now what patients need next

Roche Holding — HY 2020 Earnings Presentation on 6ix