Investor Update

Basel, 22 July 2011

Full reconciliation of Chugai interim results into IFRS

Results of Chugai as consolidated by the Roche Group

Following the publication of Chugai’s official 2011 interim results, Roche offers this investor update which reconciles these results with the results for Chugai published by Roche as part of the Roche Group’s 2011 interim results.

The common stock of Chugai is publicly traded and is listed on the Tokyo Stock Exchange (TSE: 4519). Chugai prepares financial statements in conformity with accounting principles generally accepted in Japan (JGAAP). These are filed on a quarterly basis with the Tokyo Stock Exchange.

Due to certain consolidation entries and differences in the requirements of International Financial Reporting Standards (IFRS) and JGAAP, there are differences between Chugai’s stand-alone financial results on a JGAAP basis and the financial results of Chugai as consolidated by the Roche Group in accordance with IFRS. For further information please refer to Note 3 of the Roche Half -Year Report 2011.

Please do not hesitate to contact us if you have any further questions.

Reconciliation of Chugai results


Jan-Jun 2011

JPY billionsCHF millions a)
Operating profit  (JGAAP basis)35.2
- depreciation basis difference1.1
- classification of extraordinary items(5.9)
- other differences and consolidation entries0.2
Operating profit before acquisition accounting impacts (IFRS basis)30.6338



- depreciation of property, plant and equipment0.11
- amortisation of intangible assets arising from business combinations(3.0)(33)
Operating profit (IFRS basis)27.7306



Add (deduct) non-operating items (IFRS basis)

- financial income and financing costs
5
- income taxes
(96)
Net income (IFRS basis)
215



Non controlling interest calculation

Add back acquisition accounting impact on net income
19
Net income excluding acquisition accounting
234



Non controlling interest percentage (average during year)
38.40%
Income applicable to non controlling interest (IFRS basis)
96

a) Translated at 100 JPY = 1.11 CHF