Annual Report 2002 - Roche

More documents

Recommendations

Info

Letter from the Chairman Two very different sets of developments had a major impact on the Group’s financial results for 2002. On the one hand, our core Pharmaceuticals and Diagnostics Divisions performed strongly, posting above-market growth rates and further increases in profitability. Gross cash flow reached a new record high. On the other, vigorous action to address significant unresolved issues from the past resulted in the Group’s reporting a substantial net loss. Roche’s financial condition nevertheless remains solid. At the Annual General Meeting the Board of Directors will propose that the dividend be increased by 12% to 1.45 Swiss francs per share and non-voting equity security (Genussschein). 4 Letter from the Chairman
While continuing with the successful expansion of our pharmaceuticals and diagnostics businesses, we also made it one of our primary objectives in 2002 to address a number of unresolved issues relating to the Vitamins and Fine Chemicals Division, ongoing litigation and the impact of the stock market situation on our financial assets. Last year we were able to resolve many of these challenges, giving us the flexibility and room for manoeuvre we need to strengthen our company in the long term. However, some of the measures adopted involved taking substantial one-time charges in our financial statements for 2002. – The provisions recorded and announced last autumn for settling litigation, primarily with US customers, in the vitamin case were increased by 570 million to 1,770 million Swiss francs. We believe this amount will cover all outstanding claims by direct and indirect customers in the United States. – While the merger of Nippon Roche and Chugai resulted in a net gain, this was offset by an impairment charge in connection with the sale of the Vitamins Division. The net effect of these two transactions was a loss of 1,064 million Swiss francs. – The large equity holdings that earned significant returns for Roche in the 1990s involve risks that are making themselves felt in today’s turbulent market environment. As a result of stock market developments over the past two years, the carrying value of our equity portfolio, which consists primarily of Swiss SMI securities, has declined sharply. In line with an anticipated change in International Financial Reporting Standards, we decided last year to revise our accounting policy and recognise impairment losses on financial assets if the assets’ market value remains at least 25% below original cost for a period of more than six months. As a result of this decision, accumulated unrealised investment losses totalling 5,192 While continuing with the successful expansion of our operating businesses, we also made it one of our primary objectives in 2002 to address a number of unresolved issues relating to the Vitamins Division, ongoing litigation and the impact of the stock market situation on our financial assets. Last year we were able to resolve many of these challenges. million Swiss francs as of the end of 2002 have been charged to income. Painful as the one-time impact of this measure is, it gives us the flexibility to allocate resources when and where they are needed for the strategic development of our operating businesses. In the first half of 2002 we recorded a provision of 778 million Swiss francs in respect of a long-standing lawsuit involving Genentech. In June 2002 a California superior court jury awarded City of Hope Medical Center 500 million US dollars in additional royalties and punitive damages for Genentech’s alleged breach of an agreement signed with City of Hope in 1976, that is, before Roche acquired an interest in Letter from the Chairman 5
Page 1 and 2: Annual Report 2002 Roche Group Annu
Page 3 and 4: Group Performance at a Glance Sales
Page 5 and 6: Roche Group Annual Report and Group
Page 7: The sale of the Vitamins and Fine C
Page 11 and 12: in biotechnology. At the beginning
Page 13 and 14: emain stable. Given the volatility
Page 15 and 16: Board of Directors as of 1 January
Page 17 and 18: Executive Committee from 1 January
Page 19 and 20: persons closely associated with the
Page 21 and 22: usinesses through targeted acquisit
Page 23 and 24: Pharmaceuticals Division in brief c
Page 25 and 26: also posted double-digit gains. Alt
Page 27 and 28: Western Europe. In November this no
Page 29 and 30: Transplantation - strong growth for
Page 31 and 32: ing positive decisions on both fili
Page 33 and 34: Research and development - substant
Page 35 and 36: Substantially expanded pipeline Ind
Page 37 and 38: oncology portfolio, the roll-out of
Page 39 and 40: Diagnostics Division in brief chang
Page 41 and 42: Helping to shape the future. Roche
Page 43 and 44: thing from glucose self-monitoring
Page 45 and 46: Centralized Diagnostics. Sales by o
Page 47 and 48: The global roll-out of Cobas TaqMan
Page 49 and 50: Vitamins and Fine Chemicals Divisio
Page 51 and 52: division outperformed expectations
Page 53 and 54: People and the Environment Human re
Page 55 and 56: worldwide the opportunity to purcha
Page 57 and 58: Safety and Environmental Protection
Page 59 and 60:
Social Involvement The many faces o
Page 61 and 62:
‘We do not intend to make a profi
Page 63 and 64:
Financial Review Figures reported F
Page 65 and 66:
Treasury and Financing During 2002
Page 67 and 68:
Operating profit: Double-digit incr
Page 69 and 70:
Pharmaceuticals: Operating profit a
Page 71 and 72:
Net income in millions of CHF On a
Page 73 and 74:
Foreign currency translation effect
Page 75 and 76:
The adjusted basis The concept of t
Page 77 and 78:
in millions of CHF Reconciliation o
Page 79 and 80:
Consolidated balance sheet in milli
Page 81 and 82:
Consolidated cash flow statement in
Page 83 and 84:
Foreign currency translation Most G
Page 85 and 86:
Deferred income tax is provided, us
Page 87 and 88:
Provisions Provisions are recognise
Page 89 and 90:
Changes effective 1 January 2001 Se
Page 91 and 92:
Liquidity risk Group companies need
Page 93 and 94:
Total Core Vitamines and Pharmaceut
Page 95 and 96:
of which the Group’s majority int
Page 97 and 98:
6. Chugai On 10 December 2001, Roch
Page 99 and 100:
The fair value adjustments to inven
Page 101 and 102:
Vitamin case Following the settleme
Page 103 and 104:
10. Employee benefits in millions o
Page 105 and 106:
The Group operates defined benefit
Page 107 and 108:
12. Financial income (expense), net
Page 109 and 110:
Income tax assets and liabilities A
Page 111 and 112:
Patents, licences, trademarks 2002
Page 113 and 114:
18. Other long-term assets in milli
Page 115 and 116:
25. Equity Share capital At the Ann
Page 117 and 118:
28. Minority interests in millions
Page 119 and 120:
The carrying value of the Group’s
Page 121 and 122:
2002 2001 Foreign currency derivati
Page 123 and 124:
33. Cash flow statement in millions
Page 125 and 126:
Report of the Group Auditors To the
Page 127 and 128:
1995 1996 1997 c) 1998 1999 2000 20
Page 129 and 130:
Additions to property, plant and eq
Page 131 and 132:
Number of shares and non-voting equ
Page 133 and 134:
Outstanding issues Summarised issue
Page 135 and 136:
Balance sheet at 31 December in mil
Page 137 and 138:
Participations The major participat
Page 139 and 140:
Report of the Statutory Auditors To
Page 141 and 142:
120° 30° 150° 90° 60° 30° 0°
Page 143 and 144:
Garden City, 70.000 GBP | Roche Reg
Page 145 and 146:
Diagnostics 27% Sales by division 1
show all

Annual Report 2002 - Roche

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?