Income Statement Presentation 2023

Income Statement Presentation 2023 Improving comparability, reducing complexity, reinforcing alignment Roche Changes in Income Statement presentation · Improve external comparability and simplify messaging by using "Selling, General & Administration" costs, from merging "Marketing & Distribution” and “General & Administration". • Reinforcing alignment with latest developments on Revenue by using "Other revenues", instead of “Royalties and Other Operating Income". Introducing a line "Other operating income/expense" for non-revenue income and expenses that do not fall into the regular functional costs. • Simplify and standardise reporting by removing allocations from Corporate to the Divisions and various reporting lines for functions with global accountability such as informatics, human resources, and finance. Consequences • Sales, Group Operating Profit and EPS metrics are unaffected. • No change to Core Reporting Concept. • Allocation changes will reduce costs allocated to Divisions and increase Divisional margins (around 4.0-5.0 %points). Timeline • Implementation effective 1 January 2023. Comparative 2022 information will be restated. 70

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