Record sales, double-digit growth in operating profit and Core Earnings per share – Dividend increase by
20% to 6.00 Swiss francs proposed
Group
• Group sales increase by 10% to 49.1 billion Swiss francs (8% in Swiss francs, 7% in US dollars). Both
divisions gain market share.
• Operating profit before exceptional items increases by 14% (8% in Swiss francs) to 15.0 billion Swiss
francs due to strong sales growth and continuing productivity improvements; at the same time
investments in research and development increase by 12% to 9.9 billion Swiss francs.
• Net income of 8.5 billion Swiss francs, down by 22% compared with the previous year due to exceptional
items relating to the Genentech transaction and integration.
• Excluding exceptional items, the Genentech transaction is already contributing to income: income
attributable to Roche shareholders increases by 9% to 9.8 billion Swiss francs.
• Core EPS at constant exchange rates 20% above 2008 (10% in Swiss francs).

Key figures In millions of CHF % change As % of sales
2009 2008 In CHF In LC1 2009 2008
Sales 49,051 45,617 +8 +10 100.0 100.0
Research and development 9,874 8,845 +12 +12 20.1 19.4
Operating profit before
exceptional items 15,012 13,896 +8 +14 30.6 30.5
Operating free cash flow 15,722 12,378 +27 +34 32.1 27.1
Net income attributable to
Roche shareholders3 9,798 9,001 +9
Net income 8,510 10,844 -22 17.3 23.8
Core Earnings per share (CHF) 12.19 11.04 +10 +20
Dividend per share2 (CHF) 6.00 5.00 +20

1 LC= local currencies
2 Proposed by the Board of Directors.
3 before exceptional items

Pharmaceuticals
• Pharma sales grow by 11% (8% in Swiss francs and in US dollars), almost twice the global market growth
rate despite planned reductions in wholesaler inventory levels in the fourth quarter. The growth is driven
by leading cancer medications and Tamiflu (influenza medicine) as well as Lucentis (ophthalmology
medicine).
• 2010 starting with strong sales growth.
• Operating profit margin before exceptional items increases 1.2 percentage points at constant exchange
rates (+0.2 percentage points in Swiss francs).
• Strong R&D pipeline with 10 new molecular entities in late-stage clinical testing; 6 new compounds
entered late-stage development in 2009.
• Actemra approved in US for treatment of rheumatoid arthritis in January 2010.

Diagnostics
• Sales increase by 9% (4% in Swiss francs and in US dollars) to 10.1 billion Swiss francs, more than twice
the market growth rate.
• Operating profit margin at constant exchange rates increases 0.4 percentage points (-0.4 percentage
points in Swiss francs).

Outlook
• Full-year 2010 sales for Pharmaceuticals and the Group expected to grow in the mid-single-digit range*
• Expected decrease of Tamiflu sales from 3.2 to 1.2 billion Swiss francs.
• Sales increase of Diagnostics well ahead of market.
• Planned research and development expenses will decline slightly in 2010 compared to 2009.
• Roche confirms target of double-digit Core Earnings per Share growth** in 2010.
• Based on the strong operating free cash flow, Roche expects to reduce debt progressively and to return to a net cash position by 2015 while maintaining its attractive dividend policy.
Barring unforeseen events.
Unless otherwise stated, all growth rates are in local currencies.
* Without Tamiflu sales
** at constant exchange rates

Severin Schwan, CEO of Roche, on the Group’s 2009 results: “In a turbulent external environment Roche performed extraordinarily well. Sales by both Pharma and Diagnostics grew twice as fast as their respective markets. Core Earnings per share grew even more strongly than sales. And we have layed the foundation for future growth: Our Pharma pipeline now comprises 10 new molecular entities in late-stage development - which is remarkable by any standards in our industry.” Speaking of the Genentech integration, Schwan said:
”Bringing Genentech fully into the Roche Group is a major step on the road to creating a stronger, even more innovative organisation.”

Roche Group
Strong sales and trading results
Total sales grew by 10% in local currencies (8% in Swiss francs; 7% in US dollars) to 49.1 billion Swiss francs, with the Pharmaceuticals Division accounting for 80% of Group sales and the Diagnostics Division
contributing 20%. Sales growth in both divisions exceeded market growth. Sales by the Pharmaceuticals Division increased 11% in local currencies (8% in Swiss francs and in US dollars) to 39.0 billion Swiss francs or almost double the global market growth rate.
Demand for the Group’s cancer medicines Avastin, Herceptin, MabThera/Rituxan, Tarceva and Xeloda continued to grow strongly. Additional major growth drivers in the Pharmaceuticals Division were Tamiflu in virology and Lucentis in ophthalmology. The Diagnostics Division achieved sales growth of 9% in local
currencies (4% in Swiss francs and US dollars) to 10.1 billion Swiss francs, thereby strengthening the divisions leading market share of around 20%.
The Group’s operating profit before exceptional items increased by 14% in local currencies (8% in Swiss francs) to 15.0 billion Swiss francs. Operating profit in local currencies grew 15% to 14.2 billion Swiss francs
before exceptional items in the Pharmaceuticals Division and 12% to 1.2 billion Swiss francs in the Diagnostics Division.
At constant exchange rates, the Group’s operating profit margin before exceptional items increased 1.0 percentage points, with the Pharmaceuticals Division improving 1.2 percentage points and the Diagnostics Division 0.4 percentage points. Due to a particularly unfavourable combination of exchange rate movements, however, the Group’s operating profit margin before exceptional items in Swiss francs increased only slightly, by 0.1 percentage points to 30.6%, with the Pharmaceuticals Division improving 0.2 percentage
points to 36.3% and the Diagnostics Division decreasing 0.4 percentage points to 11.9%.
The Group’s operating free cash flow increased strongly, rising 34% in local currencies (27% in Swiss francs) to 15.7 billion Swiss francs. The Group’s free cash flow remained strong in 2009, increasing by 3.9 billion
Swiss francs to 8.9 billion Swiss francs.
Core EPS, which excludes exceptional items, amortisation and impairment of intangible assets, increased 20% in local currencies (10% in Swiss francs).

Significant impact of Genentech integration and changes in Group organisation
Effective 26 March 2009, the Group obtained full ownership of Genentech. Subsequently, the Group commenced a restructuring of its US Pharmaceuticals business as well as a number of global functions.
During 2009 restructuring and integration costs of 2.4 billion Swiss francs were incurred, mainly in connection with the discontinuation of a construction project at the manufacturing site at Vacaville, California, termination costs for the closure of manufacturing operations at Nutley, New Jersey, the closure
of the research and development site at Palo Alto, California, and costs associated with the consolidation of the US administrative functions in South San Francisco. Approximately 1.8 billion Swiss francs of these
exceptional operating expenses are non-cash items related mainly to impairments of manufacturing assets.
The Group financed the Genentech transaction by a combination of the Group’s own funds, bonds, notes and commercial paper. The Group raised net proceeds of 48.2 billion Swiss francs through a series of bond and note offerings. As a consequence, interest expenses increased substantially in 2009, and financing costs exceeded financial income by 1.7 billion Swiss francs. By the end of 2009, the Group had already repaid debt of 6.9 billion Swiss francs.
Compared to 2008, net income decreased by 22% to 8.5 billion Swiss francs, primarily due to the exceptional
items.. Net income attributable to Roche shareholders declined 13% to 7.8 billion francs. Excluding exceptional items, net income was down 3% and net income attributable to Roche shareholders was 9% higher compared to 2008.
The net debt position of the Group is 23.9 billion Swiss francs, a movement of 40.6 billion Swiss francs from a net cash position of 16.7 billion Swiss francs on 31 December 2008 due to the 52.7 billion Swiss francs used in
the Genentech transaction.

Outlook
Barring unforeseen events, Roche expects sales in 2010 for the Pharmaceuticals Division and for the Group to increase in the mid-single-digit range in local currencies (excluding Tamiflu). In the Diagnostics Division, we expect full-year sales to grow significantly ahead of the market. Despite an anticipated decrease in Tamiflu sales from 3.2 to 1.2 billion Swiss Francs we are aiming to achieve double-digit Core Earnings per Share growth at constant exchange rates.
Roche expects research and development expenditures to decline slightly in 2010. However, the Group’s focus remains firmly on innovation, and it will continue to invest to support its rich pharmaceuticals development pipeline, which currently comprises 10 new molecular entities and 30 additional indications for existing products in late-stage development. Over the next 12-18 months the Pharmaceuticals Division expects to file marketing applications for several major line extensions of our key cancer medicines including
Avastin, MabThera/Rituxan and Xeloda, as well as for taspoglutide for type 2 diabetes. We expect to repay 25% of the debt raised to finance the Genentech transaction by the end of 2010.
By 2011 the Group aims to achieve pre-tax annual synergies of approximately 1 billion Swiss francs. Based on the Group’s strong operating free cash flow, we expect to reduce debt progressively and to return to a net cash position by 2015. We will simultaneously maintain our attractive dividend policy.