Roche (ROG) investor relations material

Executive summary

• Group sales grew 6% at constant exchange rates (CER), with Pharmaceuticals up 6% and Diagnostics up 3%, despite Swiss franc appreciation and healthcare pricing reforms in China.

• Core operating profit increased 10% at CER, outpacing sales growth, with margin expansion of 1.7 percentage points and core EPS up 9% at CER.

• Major regulatory milestones included five US FDA Priority Reviews, positive phase III data for key pipeline assets, and significant product launches in both divisions.

• Strategic acquisitions and collaborations, such as PathAI and Nurix Therapeutics, expanded the pipeline and diagnostics portfolio.

• IFRS net income declined in CHF due to impairments and currency effects, while core net income rose at CER.

Financial highlights

• Group sales: CHF 30.4bn (+6% CER, -2% CHF); Pharma: CHF 23.6bn (+6% CER, -1% CHF); Diagnostics: CHF 6.7bn (+3% CER, -3% CHF).

• Core operating profit: CHF 11.9bn (+10% CER, -1% CHF); core EPS: CHF 10.85 (+9% CER, -2% CHF); IFRS net income: CHF 7.3bn (+6% CER, -6% CHF).

• Free cash flow: CHF 4.2bn (+58% CER, +26% CHF); operating free cash flow: CHF 6.3bn (+21% CER).

• Net debt increased by CHF 5.9bn to CHF 22.1bn, mainly due to dividend payments.

• Core tax rate stable at 17.5% for H1.

Outlook and guidance

• 2026 outlook confirmed: mid-single-digit group sales growth and high-single-digit core EPS growth at CER expected.

• Dividend in Swiss francs expected to increase further.

• Loss of exclusivity (LOE) impact for 2026 now expected at CHF 600 million.

• Currency headwinds and biosimilar competition expected to persist.