Investor Update

Basel, 30 January 2013

Full reconciliation of Chugai 2012 results into IFRS

Results of Chugai as consolidated by the Roche Group

Following the publication of Chugai’s official 2012 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 2012 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 2012 financial statements.

Reconciliation of Chugai results

Jan-Dec 2012

JPY billionsCHF millions a)
Operating profit  (JGAAP basis)76.4
depreciation basis difference1.5
- classification of extraordinary items-0.1
- other differences and consolidation entries-3.9
Operating profit before acquisition accounting impacts (IFRS basis)73.9868
- depreciation of property, plant and equipment0.12
- amortisation of intangible assets arising from business combinations-5.5-65
Operating profit (IFRS basis)68.5805
Add (deduct) non-operating items (IFRS basis)
- financial income and financing costs-21
- income taxes-275
Net income (IFRS basis)509
Non controlling interest calculation
Add back acquisition accounting impact on net income38
Net income excluding acquisition accounting547
Non controlling interest percentage (average during year)38.4%
Income applicable to non controlling interest Chugai(IFRS basis)210
Income applicable to non controlling interest Chugai's own subsidiaries (IFRS basis)6
Income applicable to non controlling interest (IFRS basis)216

a) Translated at 100 JPY = 1.17CHF