Severin Schwan - Roche

Diagnostics Division
Annual Media Conference, 30 January 2008
Severin Schwan

Divisional results
Investing in our future

Diagnostics continues solid growth in 2007
Driven by new products and strategic acquisitions
Continued market penetration of new products
− Strong cobas 6000 placements drove market share gains
− New Accu-Chek products restoring Diabetes growth
− Doubled market share in rapidly expanding DNA sequencing market
Strategic acquisitions enabling entry into new markets
− 454 Life Sciences and NimbleGen Systems: Strengthening our position in genomics
− BioVeris: Expansion into clinical trial testing market
− Ventana: Merger agreement signed

Diagnostics Sales by BA/BU in 2007
Strong growth in Professional Dx & Applied Science
CHF 9,350 m
Local Sales Growth
Applied Science
Roche
Diagnostics
6%
692
3'216
1'148
Molecular Dx
Applied
Science
11%
Molecular
Diagnostics
-2%
Professional Dx
Professional
Diagnostics
8%
4'294
Diabetes Care
Diabetes
Care
5%

Diagnostics sales by region in 2007
Strong growth in emerging markets
CHF 9,350 m
Local Sales Growth
2,481
509
784
411
49
North America 27 %
Latin America 5 %
Asia Pacific 8 %
Japan 4 %
Others 1 %
Roche Dx
North
America
EMEA*
Latin
America
6%
5%
5%
19%
5,116
EMEA 1 55 %
Asia Pacific
Japan
2%
18%
1
Europe, Middle East and Africa

Diagnostics half-yearly sales growth
Growth acceleration continued
6%
5% 5%
4% 4% 4%
H1 '05 H2 '05 H1 '06 H2 '06 H1 '07 H2 '07
Growth on local currencies, versus same period prior year

Roche is the #1 in vitro Diagnostics company
19%
Estimated market share 2007 1, 2
13%
12%
10%
6%
4%
3% 3%
Roche Siemens* Abbott J&J Beckman
Coulter
Becton
Dickinson
bioMérieux
Bayer
1 Source: company reports, Boston Biomedical Consultants and Roche analysis based on peer sales YTD Sept 2007
2 in vitro diagnostics market; excludes Life Science research market * Siemens includes Dade (2007 deal)

Diagnostics margins in 2007
EBITDA remains well above industry average
28.6%
27.6%
% of sales
2,500
+2% 1
(+3%)
2,580
16.3%
17.6%
1,422
+14% 1
(+16%)
1,648
CHF m
2006 2007
1
at constant exchange rates
EBITDA
Operating Profit

EBITDA Comparison to Peers
High margins relative to peers
EBITDA
(% of Sales)
31.2%
31.7%
27.6%
28.5%
28.6%
27.6%
Roche *
16%
17%
18%
19%
18%
Peers **
'02 '03 '04 '05 '06 '07
*Before exceptional items **2007 competitor (Abbott Dx., Bayer Dx., Beckman Coulter, Becton Dickinson, Dade Behring, JNJ) margins not yet available

Divisional results
Investing in our future

Investing in our future: Personalised healthcare
Strengthening all businesses
Life
Sciences
in vitro
Diagnostics
Pharma
Strengthen leading
position in Genomics
• Microarrays
• Sequencing
Solidify leading
position in diagnostics
•HCV
agreement
•ECL IP
Become Pharma’s
“Partner of Choice”
• Interfaces
• Breadth of offering
Increasing
medical
value
to patients
&
physicians

Ventana: Agreement signed
Closing the gap in tissue-based cancer diagnosis
• Company facts
– Based in Tucson, Arizona; founded in 1985
– About 1000 employees
• Financials 2007*
– Revenue `07: $ US 296-300 million
– Operating Margin ’07: ~17.5 %
• Leader in tissue-based diagnostics
– Leadership in advanced staining segment
– Large installed base in pathology labs
– Strong U.S. presence
* Source: Ventana Q3 News release, Ventana Q2 Earnings and Future Guidance Presentations

Investing in our future: Ventana acquisition*
Deploying capital for the right strategic purposes
Financials:
− Tender offer of USD 89.50 per share (total transaction: 3.4 billion USD)
− Price reflects strategic fit and value of friendly and accelerated integration
− Tender offer set to expire on February 7th 2008, closing of merger expected H1 ‘08
− Strategic flexibility of the Roche group fully maintained
Smooth integration expected:
− Chris Gleeson will continue as CEO and will become a member of Diagnostics Executive
Committee
− Ventana to operate as dedicated business under Roche Diagnostics umbrella
− Headquarters to remain in Tucson, Arizona
* Merger agreement signed

Key growth drivers in 2008
Commercialise current assets; prepare market for new drivers
Key 2007 Launches*
Key 2008 Launches*
Professional
Diagnostics
Diabetes Care
Molecular
Diagnostics
Applied
Science
• cobas 4000 analyzer series
– cobas e 411 analyzer
• cobas IT 3000 & 1000
• cobas h 232
• cobas h 152 (Accutrend Plus)
• Accu-Chek Performa
• Accu-Chek Compact Plus (new)
• Accu-Chek 360 0
• cobas s 201 system & WNV Test (US)
• cobas AmpliPrep/cobas TaqMan HIV
Test (US)
• Genome Sequencer FLX
• cobas 4000 analyzer series
– cobas c 311 analyzer
• Accu-Chek Inform II
• menu: HCV, RA, sepsis, CMV
• Accu-Chek Aviva Nano
• Accu-Chek Active (new)
• CAP/CTM HCV Test (US)
• cobas TaqScreen MPX (US, J)
• cobas TaqMan 48 HBV Test (US)
• cobas TaqMan 48 CT Test (EU)
• Real-Time Cell Analyser (RTCA)
• XLR-HD for DNA sequencing
• High-density Microarray product line
Divisional sales growth
outlook
Above market growth in local currencies**
* Subject to appropriate regulatory approvals; US launch may be later; ** excluding Ventana barring unforeseen events

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