This spreadsheet supports STUDENT analysis of the case Roche Holding AG: Funding the

Genentech Acquisition (Case 14).

This spreadsheet was prepared by Michael J. Schill, Robert F. Vandell Research Associate Professor of Business Administration. Copyright
2011 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. For customer service inquiries,
send an e-mail to sales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in a retrieval system, posted
to the Internet, or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording, or otherwisewithout the
permission of the Darden School Foundation.
Rev. Oct. 5, 2012
 Exhibit 1
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
2008 Revenue Breakdown
(sales in millions of Swiss francs)

By Geography Share Product (Indication)

MabThera/Rituxin (lymphoma, leukemia, rheumatoid
North America 41%
arthritis)
Western Europe 29% Avastin (colorectal, breast, lung, and kidney cancer)
CEMAI1 9% Herceptin (breast cancer)
Japan 9% CellCept (transplantation)
Latin America 6% NeoRecormon/Epogin (anemia)
Asia-Pacific 5% Peasys (hepatitis)
Others 1% Tarceva (lung cancer, pancreatic cancer)
Lucentis (macular degeneration)
By Therapeutic Category Share Tamiflu (influenza)
Oncology 55% Xolair (asthma)
Inflammation and autoimmune 9% Valcyte/Cymevene (herpes)
diseases, transplantation Xenical (weight loss and control)
Central nervous system 3% Pulmozyme (cystic fibrosis)
Respiratory 3% Nutropin (growth hormone deficiency)
Metabolic diseases, bone diseases 8% Neutrogin (neutropenia associated with chemotherapy)
Infectious diseases 1% Rocephin (bacterial infections)
Cardiovascular diseases 3% Activase, TNKase (heart attack)
Virology 9% Madopar (Parkinsons disease)
Renal anemia 4%
Ophthalmology 3%
Others 2%

Data source: Roche 2008 annual report.

ION

Sales
5,923
5,207
5,092
2,099
1,774
1,635
1,215
960
609
560
553
502
496
413
404
344
342
311
 Exhibit 2
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Financial Statements for Roche Holdings, Financial Years Ended December 31 (in millions of Swiss
francs)

Income Statement 2004 2005 2006 2007 2008

Revenue 31,092 36,958 43,432 48,376 47,904

COGS 7,718 9,270 13,096 13,738 13,605
Gross margin 23,374 27,688 30,336 34,638 34,299
Operating expense
Sales and marketing 10,423 11,816 11,588 11,576 11,317
Research and development 5,154 5,672 7,286 8,327 8,720
Other operating 1,572 1,011 0 0 0
Operating income 6,225 9,189 11,462 14,735 14,262
Net interest expense (income) 311 (742) (443) (791) (488)
Other nonoperating expenses (income) (677) 769 (682) 222 589
Income tax 1,865 2,284 3,436 3,867 3,317
Minority interest -457 -943 -1,291 -1,676 -1,875
Net income 6,606 5,923 7,880 9,761 8,969

Balance sheet
Total cash and ST investments 12,999 20,885 24,996 24,802 21,438
Total other current assets 16,680 14,741 15,899 18,032 17,166
Net PP&E 12,408 15,097 16,417 17,832 18,190
Other noncurrent assets 16,359 18,472 17,102 17,699 19,295
Total assets 58,446 69,195 74,414 78,365 76,089

Total current liabilities 10,134 9,492 12,692 14,454 12,104

Long-term debt 7,077 9,322 6,191 3,831 2,971
Unearned revenue 0 183 163 243 174
Other noncurrent liabilities 13,237 16,864 15,924 14,354 16,361
Total liabilities 30,448 35,861 34,970 32,882 31,610

Common stock 160 160 160 160 160

Retained earnings 35,960 38,624 44,251 50,922 52,081
Treasury stock -4,326 -3,485 -2,102 -1,017 -
Comprehensive inc. and other -3,796 -1,965 -2,865 -4,582 -7,762
Total shareholder equity 27,998 33,334 39,444 45,483 44,479
 Total liabilities and SE 58,446 69,195 74,414 78,365 76,089

Data source: Capital IQ.

 Exhibit 3
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Financial Statements for Genentech, Financial Years Ended December 31 (in millions of U.S. dollars)

Income statement 2004 2005 2006 2007 2008

Revenue 4,621 6,633 9,284 11,724 13,418

COGS 805 1,155 1,366 1,767 1,971
Gross margin 3,816 5,478 7,918 9,957 11,447

Operating expense
Sales and marketing 1,088 1,435 2,014 2,256 2,405
Research and development 816 1,118 1,588 2,250 2,573
Other operating 739 946 1,110 1,212 1,400
Operating income 1,173 1,979 3,206 4,239 5,069

Net interest expense (income) (83) (93) (156) (224) (75)

Other nonoperating
expenses (income) 36 59 (35) 38 (286)

Income tax 435 734 1,290 1,657 2,004

Minority interest 0 0 0 0 0
Net income 785 1,279 2,107 2,768 3,426

Balance sheet
Total cash and ST investments
Total other current assets
Net PP&E
Other noncurrent assets
Total assets
1,665 2,365 2,493 3,975 6,198
1,760 2,021 3,211 4,778 3,875
2,091 3,349 4,173 4,986 5,404
3,887 4,412 4,965 5,201 6,310
9,403 12,147 14,842 18,940 21,787

Total current liabilities 1,238 1,660 2,010 3,918 3,095

Long-term debt 412 2,083 2,204 2,402 2,329
Unearned revenue 268 220 199 418 444
Other noncurrent liabilities 703 714 951 297 248
Total liabilities 2,621 4,677 5,364 7,035 6,116

Common stock 21 21 21 21 21
Additional paid in capital 8,003 9,263 10,091 10,695 12,044
Retained earnings (1,533) (2,067) (838) 992 3,482
Comprehensive inc. and other 291 253 204 197 124
 Total shareholder equity 6,782 7,470 9,478 11,905 15,671

Total liabilities and SE 9,403 12,147 14,842 18,940 21,787

Data source: Capital IQ.

 Exhibit 4
ROCHE HOLDINGS LTD.: FUNDING THE GENENTECH ACQUISITION
Stock Price Performance of Roche and Genentech, February 2007 to February 2009
(in Swiss francs and U.S. dollars, respectively)1

12
250 200160

140
10
200 160
120

8
100
150 120

6 80
Roche Holdings Share Price (CHF) Genentech, Inc.Inc.
Genentech, Share Price
Share (USD)
Price ($)
100 80
60
4

40
50 40
2
20

00 0 0
Jun-07 Feb-08 Oct-08
Jun-07 Feb-08 Oct-08
Feb-07 Oct-07
Feb-07 Oct-07 Jun-08
Jun-08Feb-09
Feb-09
Roche Holding AG (SWX:ROG) Genentech, Inc. (NYSE:DNA)

Source: Capital .

1
Correspondence of values between axes is approximate, based on exchange rates on February 28, 2007. The average rate for
the period was USD1.13/CHF1.00.
 Roche HGenentech, Inc. (NYSE:DNA)
2/20/2007 230.6 86.94
2/21/2007 228.1 87.74
2/22/2007 224.3 85.51
2/23/2007 224.4 85.49
2/26/2007 222.5 85.75
2/27/2007 218 84.2
2/28/2007 217.4 84.41
3/1/2007 217.2 83.59
3/2/2007 217.3 82.79
3/5/2007 214.1 81.66
3/6/2007 216 82.28
3/7/2007 218.2 81.79
3/8/2007 216.2 81.14
3/9/2007 215.6 81.58
3/12/2007 214.5 81.5
3/13/2007 213 81.3
3/14/2007 208.5 80.92
3/15/2007 210.2 80.75
3/16/2007 211.6 81.48
3/19/2007 213.7 82.78
3/20/2007 215.8 83.91
3/21/2007 218 84.9
3/22/2007 222.2 85.28
3/23/2007 219.3 82.56
3/26/2007 219 83.07
3/27/2007 217.8 82.55
3/28/2007 214.2 82.05
3/29/2007 217.1 81.59
3/30/2007 215 82.12
4/2/2007 215.4 82.6
4/3/2007 218.5 83.02
4/4/2007 218.1 83
4/5/2007 220.8 83.4
4/6/2007 220.8 83.4
4/9/2007 220.8 82.64
4/10/2007 222.9 82.56
4/11/2007 222.6 82.69
4/12/2007 221 81.63
4/13/2007 221 81.33
4/16/2007 221 81.17
4/17/2007 223 82.37
4/18/2007 229.1 82.09
4/19/2007 231.5 82.37
4/20/2007 234.4 82.4
4/23/2007 234.9 82
4/24/2007 231.5 81.6
4/25/2007 233.4 81.4
4/26/2007 232.3 81.02
4/27/2007 229.5 81.32
4/30/2007 228.2 79.99
5/1/2007 228.2 82.31
5/2/2007 229.2 82.13
5/3/2007 228.7 81.55
5/4/2007 233 81.42
5/7/2007 232 80.51
5/8/2007 230.5 80.6
5/9/2007 229.8 80.57
5/10/2007 228.4 79.56
5/11/2007 228.2 80.14
5/14/2007 226.8 80
5/15/2007 228.8 78.16
5/16/2007 227 78.53
5/17/2007 227 77.46
5/18/2007 227.6 77.28
5/21/2007 227.3 77.17
5/22/2007 226.7 78.37
5/23/2007 226.8 77.66
5/24/2007 225.3 77.64
5/25/2007 227.2 77.54
5/28/2007 227.2 77.54
5/29/2007 226.4 79.06
5/30/2007 225.5 78.74
5/31/2007 224.8 79.77
6/1/2007 227.5 79.5
6/4/2007 225.1 77.95
6/5/2007 222.6 77.49
6/6/2007 220.7 75.9
6/7/2007 217.2 74.901
6/8/2007 217.4 76.97
6/11/2007 218 76.89
6/12/2007 217.2 76.24
6/13/2007 216.3 76.38
6/14/2007 218.3 76.25
6/15/2007 220 77
6/18/2007 218.6 76.83
6/19/2007 217.5 76.45
6/20/2007 216.4 75.4
6/21/2007 213.5 75.97
6/22/2007 212.1 74.83
6/25/2007 211.9 73.95
6/26/2007 211.3 72.6
6/27/2007 211.8 74.34
6/28/2007 214.7 75.63
6/29/2007 217.4 75.66
7/2/2007 216.8 76.32
7/3/2007 217.7 76.79
7/4/2007 219.7 76.79
7/5/2007 217.3 76.7
7/6/2007 218.9 75.1
7/9/2007 219.3 75.76
7/10/2007 218.3 74.85
7/11/2007 216.5 75.93
7/12/2007 216.2 75.26
7/13/2007 216.6 75.5
7/16/2007 217 75.19
7/17/2007 215.7 74.74
7/18/2007 214.4 75.27
7/19/2007 220.5 75.17
7/20/2007 218.8 75.15
7/23/2007 217.8 74.91
7/24/2007 216.8 75.3
7/25/2007 215.4 75.81
7/26/2007 210.5 76.39
7/27/2007 210 75.47
7/30/2007 211 76.25
7/31/2007 214.6 74.38
8/1/2007 214.6 74.4
8/2/2007 213.2 74.29
8/3/2007 209.1 73.42
8/6/2007 208.8 74.16
8/7/2007 210.1 73.92
8/8/2007 215 74.58
8/9/2007 212 73.46
8/10/2007 207.4 71.67
8/13/2007 209.7 71.95
8/14/2007 208 73.37
8/15/2007 208.7 72.96
8/16/2007 205.2 73.22
8/17/2007 206.3 72.62
8/20/2007 208.9 72.4
8/21/2007 208.6 72.4
8/22/2007 211 73.09
8/23/2007 211.8 73.32
8/24/2007 211.2 73.51
8/27/2007 212.1 72.99
8/28/2007 209.6 72.98
8/29/2007 208.2 73.56
8/30/2007 208.1 73.53
8/31/2007 210 74.81
9/3/2007 209.9 74.81
9/4/2007 212.3 76.88
9/5/2007 210.7 77.96
9/6/2007 211.4 79
9/7/2007 210.1 79.09
9/10/2007 208.5 79.15
9/11/2007 209.1 78.3
9/12/2007 210 78.93
9/13/2007 211.1 78.58
9/14/2007 207.5 78.99
9/17/2007 206.1 77.56
9/18/2007 206.6 79.2
9/19/2007 210.5 80.1
9/20/2007 210.2 79.55
9/21/2007 211.9 79.38
9/24/2007 214 79.3
9/25/2007 212.5 79.22
9/26/2007 211.7 79.19
9/27/2007 211.1 79.07
9/28/2007 211.1 78.02
10/1/2007 212.7 78.12
10/2/2007 213 76.82
10/3/2007 212.4 77.85
10/4/2007 211.8 78
10/5/2007 211.8 78.28
10/8/2007 212 77.9
10/9/2007 213.1 76.73
10/10/2007 215.9 76.1
10/11/2007 218.3 76.32
10/12/2007 217.3 77.25
10/15/2007 216.7 77.5
10/16/2007 210.5 75.04
10/17/2007 208.5 74.53
10/18/2007 207.8 73.47
10/19/2007 204.2 75
10/22/2007 202.5 75
10/23/2007 201.6 75.26
10/24/2007 202.6 74.88
10/25/2007 201.6 74.68
10/26/2007 200 74.14
10/29/2007 198.1 74.35
10/30/2007 196.5 73.76
10/31/2007 197.6 74.13
11/1/2007 195.8 73.11
11/2/2007 194.4 74.83
11/5/2007 194.1 74.6
11/6/2007 195.3 75.31
11/7/2007 195 74.29
11/8/2007 193.1 75.35
11/9/2007 190.3 75.09
11/12/2007 191.7 74.33
11/13/2007 195.2 73.78
11/14/2007 200.2 74.21
11/15/2007 200.3 74.53
11/16/2007 198.4 74.99
11/19/2007 195.1 75.14
11/20/2007 199.9 75.12
11/21/2007 201.8 74.16
11/22/2007 213.4 74.16
11/23/2007 214.2 74.82
11/26/2007 209.5 74.55
11/27/2007 212 76.01
11/28/2007 212.5 76.32
11/29/2007 214.1 76.24
11/30/2007 215.5 76.25
12/3/2007 209 73.5
12/4/2007 209.3 72.78
12/5/2007 211.3 66.64
12/6/2007 204.5 66.57
12/7/2007 203.7 68.49
12/10/2007 205 69.53
12/11/2007 204.8 69.89
12/12/2007 205.3 70.58
12/13/2007 200.1 69.74
12/14/2007 201 68.43
12/17/2007 198.7 67.57
12/18/2007 197.9 67.29
12/19/2007 196.6 67.33
12/20/2007 196.4 67.96
12/21/2007 195.5 67.9
12/24/2007 195.5 68.12
12/25/2007 195.5 68.12
12/26/2007 195.5 68.06
12/27/2007 195.6 67.13
12/28/2007 195.6 67.51
12/31/2007 195.6 67.07
1/2/2008 195.6 67.4
1/3/2008 192 67.11
1/4/2008 190 66.38
1/7/2008 192.1 66.27
1/8/2008 203.5 68.29
1/9/2008 207.7 70.11
1/10/2008 208.6 70.88
1/11/2008 205.9 71.5
1/14/2008 203.3 70.64
1/15/2008 198.1 69.62
1/16/2008 197.7 69.94
1/17/2008 201.6 69.75
1/18/2008 203.5 68.77
1/21/2008 193.8 68.77
1/22/2008 195.5 68.35
1/23/2008 190.7 67.66
1/24/2008 194.6 68.43
1/25/2008 194 67.79
1/28/2008 192.2 68.84
1/29/2008 189.4 69.53
1/30/2008 193.5 69.56
1/31/2008 195.8 70.16
2/1/2008 199.4 70.81
2/4/2008 198.8 71.49
2/5/2008 194 70.78
2/6/2008 196.1 70.52
2/7/2008 193.1 69.92
2/8/2008 191.6 69.79
2/11/2008 190.7 69.48
2/12/2008 193 69.92
2/13/2008 197.3 70.85
2/14/2008 196.7 72.12
2/15/2008 192 72.67
2/18/2008 194 72.67
2/19/2008 194.2 72.84
2/20/2008 192.2 72.37
2/21/2008 194.2 71.75
2/22/2008 196.1 71.599
2/25/2008 205 77.96
2/26/2008 206.4 77.5
2/27/2008 208.6 76.66
2/28/2008 206 75.86
2/29/2008 204.9 75.75
3/3/2008 204.1 79.18
3/4/2008 200 80.6
3/5/2008 199.1 80.76
3/6/2008 198.2 79.49
3/7/2008 193.9 79.39
3/10/2008 191.1 78.21
3/11/2008 191.4 79.28
3/12/2008 190.7 80.15
3/13/2008 188.8 81.43
3/14/2008 187.3 78.83
3/17/2008 182.1 77.27
3/18/2008 186 78.44
3/19/2008 184.6 78.05
3/20/2008 186.5 79.26
3/24/2008 186.5 78.84
3/25/2008 189.5 80.37
3/26/2008 187.3 82.01
3/27/2008 189.6 80.13
3/28/2008 188.4 80
3/31/2008 186.9 81.18
4/1/2008 191.1 81.04
4/2/2008 192.5 79.8
4/3/2008 190.2 79.42
4/4/2008 190 79.73
4/7/2008 190.2 78.65
4/8/2008 188.3 79.04
4/9/2008 182.5 77.71
4/10/2008 180.7 78
4/11/2008 178.4 76.79
4/14/2008 173 74.69
4/15/2008 167 74.06
4/16/2008 170.6 74.18
4/17/2008 164.6 73.31
4/18/2008 170.6 72.72
4/21/2008 171.4 71.91
4/22/2008 171 74.09
4/23/2008 170.6 73.69
4/24/2008 174.5 72.92
4/25/2008 175.5 71.97
4/28/2008 177 73.16
4/29/2008 173.2 67.93
4/30/2008 172.8 68.2
5/1/2008 172.8 68.35
5/2/2008 174 67.24
5/5/2008 173.2 67.79
5/6/2008 169.1 68.17
5/7/2008 171.1 67.65
5/8/2008 168.8 68.32
5/9/2008 167 68.53
5/12/2008 167 68.37
5/13/2008 171.5 68.55
5/14/2008 173.6 69.26
5/15/2008 177.9 68.83
5/16/2008 177.9 70.19
5/19/2008 181.3 70.2
5/20/2008 179.3 69.46
5/21/2008 178.5 68.22
5/22/2008 178.6 68.89
5/23/2008 174.9 68.53
5/26/2008 172.7 68.53
5/27/2008 176 67.56
5/28/2008 177.5 68.06
5/29/2008 180.2 71.01
5/30/2008 179.7 70.87
6/2/2008 188 73.95
6/3/2008 187 72.7
6/4/2008 183.5 72.47
6/5/2008 184.8 73.11
6/6/2008 180.8 73.69
6/9/2008 180.4 74.09
6/10/2008 177.9 74.35
6/11/2008 176.8 73.91
6/12/2008 177.9 73.8
6/13/2008 179 73.77
6/16/2008 176.2 74.65
6/17/2008 175.8 75.17
6/18/2008 174.6 74.36
6/19/2008 175.8 75.06
6/20/2008 171.5 74.76
6/23/2008 173.3 74.18
6/24/2008 175.2 73.45
6/25/2008 176.3 73.78
6/26/2008 175.8 72.44
6/27/2008 175.1 72.72
6/30/2008 184 75.9
7/1/2008 181.8 78.56
7/2/2008 183.6 78.14
7/3/2008 182.8 77.94
7/4/2008 180 77.94
7/7/2008 179.1 75.93
7/8/2008 180.7 77.91
7/9/2008 183.7 78.09
7/10/2008 185.8 77.91
7/11/2008 180.3 77.75
7/14/2008 182 75.39
7/15/2008 184 79.25
7/16/2008 180.5 78.77
7/17/2008 176.8 81.16
7/18/2008 179.6 81.82
7/21/2008 171 93.88
7/22/2008 177.2 93.55
7/23/2008 179.4 93.73
7/24/2008 182.5 94.65
7/25/2008 188.9 96
7/28/2008 186.8 95.32
7/29/2008 186.3 94.58
7/30/2008 189.2 95
7/31/2008 194.3 95.25
8/1/2008 194.3 95.35
8/4/2008 193.9 95.72
8/5/2008 195.5 96
8/6/2008 191 96.05
8/7/2008 186.4 96.89
8/8/2008 189.6 96.95
8/11/2008 186.4 97.83
8/12/2008 185.4 97.85
8/13/2008 187.4 98.37
8/14/2008 187.8 98.81
8/15/2008 189 98.23
8/18/2008 187.3 98.63
8/19/2008 187 98.57
8/20/2008 185.6 97.99
8/21/2008 182 97.43
8/22/2008 183.1 98.06
8/25/2008 181.7 97.38
8/26/2008 183.8 98.11
8/27/2008 183.3 97.9
8/28/2008 185.6 98.45
8/29/2008 186 98.75
9/1/2008 185 98.75
9/2/2008 188.1 98.29
9/3/2008 186.8 97.68
9/4/2008 184 96.5
9/5/2008 183.4 96.64
9/8/2008 186 94.91
9/9/2008 185.2 94.25
9/10/2008 189.2 95.69
9/11/2008 188.5 97.1
9/12/2008 190.8 96.56
9/15/2008 186.8 93.83
9/16/2008 181 93.39
9/17/2008 182 89.6
9/18/2008 183 90.7
9/19/2008 180.1 92.27
9/22/2008 176 92.3
9/23/2008 176.4 91.49
9/24/2008 174.5 90.4
9/25/2008 178.4 91.75
9/26/2008 176 91.19
9/29/2008 169.6 85.3
9/30/2008 174.5 88.68
10/1/2008 178.4 86.5
10/2/2008 179.5 86.51
10/3/2008 181.1 87.53
10/6/2008 171.9 80.62
10/7/2008 175 78.19
10/8/2008 167.1 80.56
10/9/2008 154.4 78.75
10/10/2008 148.2 73
10/13/2008 162.4 81.18
10/14/2008 162.8 79.12
10/15/2008 160.3 81.5
10/16/2008 159 81.93
10/17/2008 175.5 83.53
10/20/2008 180.3 84.26
10/21/2008 170.3 85.68
10/22/2008 168.6 82.55
10/23/2008 170.3 81.9
10/24/2008 168 79.84
10/27/2008 164.1 78.46
10/28/2008 161.2 78.55
10/29/2008 168.5 80.36
10/30/2008 161.3 82.75
10/31/2008 176.8 82.94
11/3/2008 177.2 83.64
11/4/2008 178.1 83.31
11/5/2008 167.8 83.91
11/6/2008 165.3 81.8
11/7/2008 170.3 83.46
11/10/2008 170 83.8
11/11/2008 167.7 80.9
11/12/2008 166.5 80.36
11/13/2008 170.3 82.32
11/14/2008 176.2 81.59
11/17/2008 168 80.43
11/18/2008 171 80.63
11/19/2008 166 78.07
11/20/2008 156.2 73.03
11/21/2008 150.5 72.74
11/24/2008 162.1 76.66
11/25/2008 163 76.25
11/26/2008 163.8 75.3
11/27/2008 162.7 75.3
11/28/2008 170 76.6
12/1/2008 163.8 71.8
12/2/2008 163.5 71.77
12/3/2008 169.1 75.4
12/4/2008 165.9 73.65
12/5/2008 164.7 74.38
12/8/2008 169.6 77.6
12/9/2008 169.8 77.18
12/10/2008 168.1 77.4
12/11/2008 167.2 77.79
12/12/2008 168.2 77.74
12/15/2008 161.9 77.08
12/16/2008 163.8 77.59
12/17/2008 160.2 78.75
12/18/2008 159.4 80.3
12/19/2008 160 83.75
12/22/2008 163 82.55
12/23/2008 160.5 83
12/24/2008 160.5 82.8
12/26/2008 160.5 82.21
12/29/2008 162.5 81.97
12/30/2008 162.5 82.28
12/31/2008 162.5 82.91
1/2/2009 162.5 82.6
1/5/2009 168.7 83
1/6/2009 170.5 84
1/7/2009 169.9 84.53
1/8/2009 172.5 84.4
1/9/2009 171.9 86.34
1/12/2009 166.1 87.47
1/13/2009 168.6 86.74
1/14/2009 169.2 85.57
1/15/2009 170.4 85.08
1/16/2009 167.2 85.1
1/19/2009 170 85.1
1/20/2009 170.3 82.1
1/21/2009 170 83.14
1/22/2009 168.9 81.7
1/23/2009 169.4 84.3
1/26/2009 170.6 81.59
1/27/2009 166.5 83.14
1/28/2009 165.6 83.44
1/29/2009 160.3 84.09
1/30/2009 163.4 81.24
2/2/2009 163.5 82.1
2/3/2009 162.6 82.97
2/4/2009 147.8 82.45
2/5/2009 145.4 82.4
2/6/2009 145.2 83
2/9/2009 148.6 82.7
2/10/2009 147 82.69
2/11/2009 147.7 83
2/12/2009 148.7 84
2/13/2009 148.7 83.25
2/16/2009 148 83.25
2/17/2009 145.3 83
2/18/2009 147.2 84.7
2/19/2009 144.4 84.76
2/20/2009 141.4 85.02
2/23/2009 143.3 84.55
 Exhibit 5
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Annual Yield Rate to Maturity (U.S. Dollar, Euro, British Pound), February 2009
U.S. (in percent)
Euro UK
Treasuries Benchmark 1
Sovereign
6-mo 0.34 n.a. 0.48
1 0.48 2.09 0.56
2 0.93 2.26 0.88
3 1.35 2.55 1.39
4 1.50 2.81 1.85
5 1.87 3.01 2.29
6 n.a. 3.19 2.79
7 2.18 3.35 3.06
8 2.67 3.48 3.25
9 2.80 3.60 3.50
10 2.85 3.70 3.66
12 n.a. 3.87 n.a.
15 3.45 3.99 4.13
20 3.91 3.99 4.29
25 3.90 3.83 4.34
30 3.59 3.69 4.35

Source: Bloomberg.

1
The euro benchmark is obtained from the midrate of the euro versus the EURIBOR midinterest rate swap.
 Exhibit 6
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
U.S. Treasuries for S&P's Bond-Rating Categories for
February 2009
(in basis points)

Years to maturity
Rating 1 2 3 5 7 10 30
AAA 90 82 77 90 136 114 170
AA 210 201 198 202 224 204 242
A+ 211 201 217 226 243 226 242
A 279 261 278 277 290 275 263
A 289 271 287 286 303 284 273
BBB + 406 387 409 406 412 406 394
BBB 417 398 422 424 435 418 411
BBB 493 497 510 520 527 509 506

Compiled from averages of bonds by Standard & Poor's.

A basis point is 0.01% or 0.0001; 100 basis points equal 1.0%.

Source: Bloomberg
 Exhibit 7
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
History of U.S. Bond Yields for 30-Year Maturities, February 2006 to February 2009 (in percent)

10.00

9.00

8.00

7.00

6.00
Yield (%)
5.00

4.00

3.00

2.00

Mergent Corporate Bond Yield Average - Baa Rating

Mergent Corporate Bond Yield Average - Aa Rating
U.S. Treasuries 30-Year Yield

Source: Datastream, Mergent Bond Record.

 U.S. Treasuries 30-Mergent Corporate Mergent Corporate Bond Yield Average - Baa Rating
Feb-06 4.51 5.51 6.27
Mar-06 4.83 5.67 6.41
Apr-06 5.15 6.00 6.68
May-06 5.15 6.13 6.75
Jun-06 5.25 6.11 6.78
Jul-06 5.10 6.08 6.76
Aug-06 4.95 5.91 6.59
Sep-06 4.73 5.75 6.43
Oct-06 4.89 5.74 6.42
Nov-06 4.66 5.57 6.20
Dec-06 4.78 5.58 6.22
Jan-07 4.92 5.75 6.34
Feb-07 4.80 5.72 6.28
Mar-07 4.82 5.66 6.27
Apr-07 4.84 5.83 6.39
May-07 4.99 5.85 6.39
Jun-07 5.19 6.17 6.70
Jul-07 5.01 6.09 6.65
Aug-07 4.85 6.06 6.65
Sep-07 4.87 6.02 6.59
Oct-07 4.67 5.94 6.48
Nov-07 4.36 5.78 6.40
Dec-07 4.61 5.91 6.65
Jan-08 4.28 5.78 6.54
Feb-08 4.59 5.97 6.82
Mar-08 4.33 5.90 6.89
Apr-08 4.52 5.93 6.97
May-08 4.71 6.00 6.92
Jun-08 4.63 6.11 7.07
Jul-08 4.66 6.05 7.16
Aug-08 4.40 6.01 7.15
Sep-08 4.40 6.03 7.31
Oct-08 4.24 6.79 8.88
Nov-08 3.60 6.73 9.21
Dec-08 2.62 5.81 8.45
Jan-09 3.45 5.84 8.14
Feb-09 3.60 6.02 8.08
rage - Baa Rating
 Exhibit 8
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
S&P Credit Ratings Overview

S&Ps global bond rating scale provides a benchmark for evaluating the relative credit
risk of issuers and issues worldwide.

Investment grade
AA Extremely strong capacity to meet financial commitments. Highest
A rating
AA Very strong capacity to meet financial commitments

A Strong capacity to meet financial commitments, but somewhat

susceptible to adverse economic conditions and changes in
BB circumstances
Adequate capacity to meet financial commitments, but more
B subject to adverse economic conditions
Speculative grade
BB Less vulnerable in the near-term but faces major ongoing
uncertainties to adverse business, financial and economic
B conditions
More vulnerable to adverse business, financial and economic
conditions but currently has the capacity to meet financial
CC commitments
Currently vulnerable and dependent on favorable business,
C financial and economic conditions to meet financial commitments
CC Currently highly vulnerable

C A bankruptcy petition has been filed or similar action taken, but

payments of financial commitments are continued
D Payment default on financial commitments

Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign
to show relative standing within the major rating categories.

Data source: Guide to Credit Rating Essentials, Standard and Poors, http://www2.standardandpoors.com/sp
ON

andardandpoors.com/spf/pdf /fixedincome/SP_CreditRatingsGuide.pdf (accessed February 16, 2011).

 Exhibit 9
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Median Financial Ratio Values for all U.S. Rated Industrial Companies (2007 and 2008)

Number of Debt/ EBITDA/ EBIT/ Debt/

companies (Debt+BookEq) Int Expense Int Expense EBITDA
2007
AAA 26 0.51 95.47 74.06 2.26
AA 189 0.30 35.92 31.05 0.85
A 539 0.41 12.45 9.86 1.63
BBB 924 0.50 8.20 6.11 2.66
BB 470 0.52 6.59 4.63 2.82
B 335 0.71 3.71 2.30 4.66

2008
AAA 18 0.51 113.97 81.62 3.25
AA 182 0.26 43.97 31.21 0.81
A 559 0.43 12.78 9.89 1.81
BBB 924 0.50 8.23 6.42 2.47
BB 417 0.52 6.40 4.51 2.82
B 321 0.75 3.41 2.10 4.92

Source: Case writer analysis of Compustat data.

 Exhibit 10
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Plan for Currency and Maturity of Bond Offering Tranches1

U.S. dollar-denominated
Maturity Amount (in billions of U.S. dollars) Coupon
1 year 3.00 Floating rate
2 years 1.25 Floating rate
3 years 2.50 Fixed rate
5 years 2.75 Fixed rate
10 years 4.50 Fixed rate
30 years 2.50 Fixed rate

Euro-denominated
Maturity Amount (in billions of euros) Coupon
1 year 1.50 Floating rate
4 years 5.25 Fixed rate
7 years 2.75 Fixed rate
12 years 1.75 Fixed rate

Sterling-denominated
Amount (in billions of British
Maturity Coupon
pounds)
6 years 1.25 Fixed rate

1
Prevailing exchange rates at the time were CHF1.67/GBP1.00, CHF1.18/USD1.00, and CHF1.48/EUR1.00
D1.00, and CHF1.48/EUR1.00.
 Exhibit 11
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Prevailing Prices of Sample of Recently Rated Corporate Bonds (Mid-February 2009)

Years
Amount
remaining S&P
Company Issue date Maturity issued Coupon
to rating
(millions)
maturity
U.S. dollar-denominated
Altria 2/3/2009 2/6/2014 5 BBB 525 7.75
Altria 2/3/2009 2/6/2019 10 BBB 2,200 9.25
Altria 2/3/2009 2/6/2039 30 BBB 1,500 10.2
AT&T 1/29/2009 2/15/2014 5 A 1,000 4.85
AT&T 1/29/2009 2/15/2019 10 A 2,250 5.8
AT&T 1/29/2009 2/15/2039 30 A 2,250 6.55
Johnson & Johnson 6/23/2008 7/15/2038 29 AAA 700 5.85
McKesson 2/9/2009 2/15/2014 5 BBB+ 350 6.5
McKesson 2/9/2009 2/15/2019 10 BBB+ 350 7.5
Novartis 2/10/2009 2/10/2014 5 AA 2,000 4.125
Novartis 2/10/2009 2/10/2019 10 AA 3,000 5.125
Pfizer 2/3/2004 2/15/2014 5 AA 750 4.5
Schering-Plough 11/26/2003 12/1/2013 5 AA 1,250 5.3
Schering-Plough 9/17/2007 9/15/2037 29 AA 1,000 6.55
Verizon 11/4/2008 11/1/2018 10 A 2,000 8.75
Verizon 11/4/2008 3/31/2039 30 A 1,250 8.95
Warner Chilcott 2/1/2006 2/1/2015 6 BB 600 8.75

Euro-denominated
Anheuser-Busch InBev 2/9/2009 2/27/2014 5 BBB+ 750 6.57
Imperial Tobacco 2/10/2009 2/17/2016 7 BBB 1,500 8.375
John Deere 1/19/2009 1/24/2014 5 A 600 7.5
Schering-Plough 10/1/2007 10/1/2014 6 AA 1,500 5.375
Volkswagen 1/30/2009 2/9/2012 3 A 2,500 5.625
Volkswagen 1/30/2009 2/9/2016 7 A 1,000 7

Pound sterling-denominated
Bayer AG 5/23/2006 5/23/2018 9 A 350 5.625
Imperial Tobacco 2/10/2009 2/17/2022 13 BBB 1,000 9
Tesco 2/17/2009 2/24/2014 5 A 600 5

Source: Bloomberg and case writer analysis. 2/15/2009

UISITION
bruary 2009)

Price

105.835
104.612
105.079
99.790
98.877
96.626
111.000
103.372
106.156
101.778
100.746
105.660
103.820
101.332
118.582
124.467
95.000

100.558
101.048
105.801
99.710
100.332
100.238

100.817
107.062
100.284
 Exhibit 12
ROCHE HOLDINGS AG: FUNDING THE GENENTECH ACQUISITION
Selected Comparable Companies Data for 2008
(in millions of U.S. dollars)1
Cash and
Shareholder equity Total debt equivalents EBITDA
Bayer AG 21,381 21,779 2,740 8,183
Schering-Plough 10,529 8,176 3,373 2,917
Johnson & Johnson 46,100 11,852 10,768 19,001
Pfizer 57,556 17,290 2,122 20,929
Wyeth 19,174 11,739 10,016 7,954
GlaxoSmithKline 15,900 25,211 8,758 15,388
Merck & Co. 21,080 6,240 4,368 7,854
AstraZeneca 15,912 11,848 4,286 12,553
Warner Chilcott 1,350 963 36 508
Roche Holding 41,569 4,051 4,870 16,751
Roche +
Genentech (Pro
Forma) 41,569 46,051 4,870 16,751

1
Because the Genentech financial figures are already consolidated in the Roche financial statements, only the debt and interest expense is
The pro-forma interest expense is based on an arbitrary 5% interest rate.

Source: Capital IQ and case writer analysis.

CH ACQUISITION
2008

Interest
expense Current rating
1,626 A-
536 AA-
435 AAA
516 AA
492 A+
1,291 A+
251 AA-
714 AA
94 BB-
213 AA-

2,303

ements, only the debt and interest expense is expected to vary.