- Mid-single digit sales growth in local currencies excluding Tamiflu
- Strong profit growth
- Promising late stage pharmaceutical pipeline of twelve new molecular entities
Group
• Group sales increase 5% in local currencies, excluding Tamiflu; including Tamiflu, Group sales remain stable in local currencies at 47.5 billion Swiss francs.
• Growth momentum maintained throughout 4th quarter due to continued uptake for Actemra, Herceptin, MabThera and immunoassays.
• Core operating profit increases 7% in local currencies to 16.6 billion Swiss francs, core operating profit margin up by 1.7 percentage points to 34.9%; operating free cash flow of 14.1
billion Swiss francs underscores financial strength.
• Net income increases 4% to 8.9 billion Swiss francs despite significant costs in connection with the ‘Operational Excellence’ initiative.
• Core Earnings per Share 10% higher at constant exchange rates and 4% higher in Swiss francs.
• Implementation of Operational Excellence on track; Group-wide review of structures and processes aims to accelerate productivity improvements and strengthen innovation capacity;
cost savings of 2.4 billion Swiss francs from 2012 onwards; restructuring charges of 2.7 billion Swiss francs, of which 1.3 billion Swiss francs were included in the 2010 operating results.
• Board proposes a dividend increase of 10% to 6.60 Swiss francs, the 24th consecutive year of dividend growth; this would increase the payout ratio to 52%.

Key figures In millions of CHF % change As % of sales
2010 2009 In CHF In LC1 2010 2009
Sales 47,473 49,051 -3 0
Research and development 9,050 9,509 -5 -2 19.1 19.4
Core operating profit 16,591 16,272 +2 +7 34.9 33.2
Operating free cash flow 14,149 15,722 -10 -6 29.8 32.1
Net income attributable to
Roche shareholders
8,666 7,784 +11
Net income 8,891 8,510 +4 18.7 17.3
Core Earnings per share (CHF) 12.78 12.34 +4 +10
Dividend per share2 (CHF) 6.60 6.00 +10
1 LC= local currencies
2 Dividend 2010 as proposed by the Board of Directors

Pharmaceuticals
• Pharmaceuticals sales up 5% in local currencies, excluding Tamiflu, above the global market.
Major growth drivers are key products for cancer, Actemra/RoActemra for rheumatoid arthritis and Lucentis in ophthalmology.
• Core operating profit margin increases significantly, by 1.9 percentage points to 39.9%.
• Late-stage development pipeline with twelve innovative new molecular entities, including six potential personalised healthcare medicines with planned companion diagnostic tests.
• Roche personalized investigational medicine RG7204 shows survival benefit in advanced skin cancer.
• Four new molecular entities moved into late-stage clinical development: lebrikizumab (asthma), MetMAb (lung cancer), RG 7128 (hepatitis C) and ocrelizumab (multiple sclerosis).
• Roche has made the decision to stop the development of taspoglutide for type 2 diabetes and to return the product to Ipsen.

Diagnostics
• Diagnostics sales increase 8% in local currencies to 10.4 billion Swiss francs, significantly ahead
of the market, driven by Professional Diagnostics and Diabetes Care.
• Core operating profit margin up substantially, 3.8 percentage points to 21.1%.
• Fifty tests and instruments launched in key markets.
• cobas 8000 modular analyser series rolled out in US; new immunoassay module enables consolidation of serum work area for high-volume laboratories.
• ATHENA clinical trial demonstrates high medical value of cobas 4800 HPV test, which detects high-risk genotypes 16 and 18, in screening for cervical cancer.

Outlook
• Full-year 2011 sales for Pharmaceutical and the Group expected to grow at low single-digit rates in local currencies (excluding Tamiflu), in line with expected market growth.
• Diagnostics sales expected to grow significantly ahead of the market.
• Target of high single-digit Core Earnings per Share growth in 2011 at constant exchange rates.
• Planned dividend increase in line with Core Earnings per Share growth.
• Based on the strong operating free cash flow, Roche expects to reduce debt progressively and to return to a net cash position by 2015.

Commenting on the Group’s 2010 performance, Roche CEO Severin Schwan said: ‘The Group results are
solid despite an increasingly challenging market environment. Excluding Tamiflu the Pharma Division grew
above the market. Diagnostics kept its strong momentum and grew significantly ahead of the market. The
twelve innovative new molecular entities in our late-stage pharmaceutical pipeline form a strong basis for
the company’s future success. Six of these drug candidates are being developed for specific patient
subpopulations with the aim to advance personalised healthcare in key therapeutic areas such as cancer and
asthma.’
Group Results and Outlook
Overall results
The Roche Group posted solid overall results in 2010. Group sales were stable in local currencies at 47.5
billion Swiss francs (–3% in Swiss francs; 1% in US dollars). The good underlying growth of both divisions
compensated for the expected decline in Tamiflu sales and the impacts of healthcare reforms and austerity
measures. Excluding Tamiflu, sales increased by 5% in local currencies. The Pharmaceuticals Division
represented 78% of Group sales and the Diagnostics Division contributed 22%.
Sales in the Pharmaceuticals Division declined by 2% in local currencies to 37.1 billion Swiss francs.
Excluding Tamiflu, local growth was 5%, above market growth. Demand for the oncology drugs Avastin,
MabThera/Rituxan, Herceptin, Xeloda and Tarceva continued to grow strongly. Additional major growth
drivers were Actemra/RoActemra in rheumatoid arthritis, Mircera in anemia and Lucentis in
ophthalmology. Actemra, which is now launched in some 50 countries including the United States, the EU
and Japan, reached sales of 397 million Swiss francs in 2010. These positive factors compensated for most of
the expected strong decline in Tamiflu sales, the reduction in CellCept sales due to US patent expiry in May
2009 and the impacts of the US healthcare reforms, European austerity measures and price cuts in Japan.
The Diagnostics Division increased sales to 10.4 billion Swiss francs in 2010, growing 8% in local currencies
(4% in Swiss francs; 8% in US dollars), thereby strengthening its leading market position. Major drivers
were Professional Diagnostics with 11% sales growth and Diabetes Care with 4% sales growth.