ACTELION LTD FIRST QUARTER 2015 FINANCIAL REPORT.

ACTELION LTD FIRST QUARTER 2015 FINANCIAL REPORT. APRIL 21, 2015

2 CONTENTS 03 FIRST QUARTER 2015 FINANCIAL REVIEW 15 UNAUDITED FIRST QUARTER 2015 CONSOLIDATED FINANCIAL STATEMENTS Disclaimer and notes to this financial report: Actelion continues to measure, report and issue guidance on its core operating performance, which management believes more accurately reflects the underlying business performance. The Group believes that these non-gaap financial measurements provide useful supplementary information to investors. These non-gaap measures are reported in addition to, not as a substitute for, US GAAP financial performance. Constant Exchange Rates (CER) percentage changes are calculated by reconsolidating both the Q1 2014 and Q1 2015 results at constant currencies (the average monthly exchange rates for Q1 2014). nm = not meaningful Rounding differences may occur.

3 FIRST QUARTER 2015 FINANCIAL REVIEW

4 SALES (in CHF millions, except % ) 2015 2014 CHF % CER % Product sales Opsumit 95 15 nm nm Tracleer 344 369-7% -4% Veletri 19 14 41% 42% Ventavis 31 25 26% 18% Valchlor 5 1 nm nm Zavesca 20 26-23% -18% Others 2 1 nm nm Product sales excluding US rebate reversals 515 450 14% 16% US rebate reversals* - 18 Total product sales 515 469 10% 12% *To allow meaningful comparison to the first three months 2014, the reversals of rebate accruals reported in 2014 have been disclosed separately in the sales tables where relevant. Actelion s commercial performance in the first three months of 2015 was strong, driven by the continued successful Opsumit launch momentum. In the US, sales increased by 36% (excluding 2014 rebate reversals) driven by Opsumit, buying pattern variations and price increases across major products. European sales increased by 5% at CER, driven mostly by Opsumit and Tracleer sales in the digital ulcer indication in a continually negative pricing environment. Sales in Japan decreased by 8% at CER mainly due to reduced inventories compared to the first quarter of 2014. Sales in the rest of the world increased by 10% at CER, driven by strong growth in PAH-emerging markets such as China, other Asian and Latin American markets. Comparing average exchange rates for the first quarter of 2015 with the average exchange rates during the first quarter of 2014, the Swiss franc appreciated against most major currencies resulting in a negative currency of 9 million Swiss francs. (in CHF millions, except % ) 2015 2014 CHF % CER % Product sales by region United States 252 173 45% 36% Europe 169 179-6% 5% Japan 42 49-16% -8% Rest of the world 53 49 8% 10% Product sales excluding US rebate reversals 515 450 14% 16% US rebate reversals* - 18 Total product sales 515 469 10% 12%

5 PAH FRANCHISE Opsumit (in CHF millions, except % ) 2015 2014 CHF % CER % Sales by region United States 68 13 nm nm Europe 21 2 nm nm Japan - - nm nm Rest of the world 5 0 nm nm Total 95 15 nm nm Opsumit (macitentan) sales amounted to 95 million Swiss francs for the first quarter of 2015, reflecting the continued successful launch. The strong patient enrollment trend continued during the first quarter 2015. As per March 31, 2015, Opsumit was successfully launched in the United States, Germany, Austria, the UK, Ireland, Denmark, Sweden, the Netherlands, Australia, Italy, Belgium, Luxembourg, Canada, Finland, Mexico (marketed as Zependo, private market), Norway, Iceland, Switzerland, Hungary, Kuwait, Portugal and Israel. On March 26, 2015, Opsumit was approved in Japan. Actelion Pharmaceuticals Japan will co-promote Opsumit with Nippon Shinyaku in Japan and the companies will ensure that Opsumit is made available to patients as soon as possible. Tracleer (in CHF millions, except % ) 2015 2014 CHF % CER % Sales by region United States 134 119 13% 6% Europe 131 162-19% -9% Japan 36 45-21% -14% Rest of the world 43 42 0% 1% Sales excluding US rebate reversals 344 369-7% -4% US rebate reversals* - 15 Total 344 383-10% -8% Tracleer (bosentan) sales amounted to 344 million Swiss francs for the first quarter of 2015, a decrease of 4% at CER compared to the first quarter of 2014 or 8% including the impact of prior year US rebate reversals. This decrease is mainly due to erosion in markets where Opsumit is available as well as pricing pressure in Europe, increased generic bosentan competition and a negative inventory effect in Japan. Tracleer sales were supported by replenished inventories returning to normalized levels and price increases in the US, the digital ulcer indication in Europe as well as continued solid demand in markets where Opsumit is not yet available. Underlying units sold globally decreased by 5%. Veletri (in CHF millions, except % ) 2015 2014 CHF % CER % Sales by region United States 10 9 14% 7% Europe 3 1 nm nm Japan 5 4 40% 52% Rest of the world 1 0 nm nm Sales excluding US rebate reversals 19 14 41% 42% US rebate reversals* - 1 Total 19 15 33% 34% Veletri (epoprostenol for injection) sales amounted to 19 million Swiss francs for the first quarter of 2015, an increase of 42% at CER compared to first quarter of 2014 or 34% including the impact of prior year US rebate reversals. The increase was mostly driven by successful launches in additional markets and continued growth in Japan despite a price cut on March 1, 2014 of 5%.

6 At the end of March 2015, Veletri was available in the US, UK, Spain, the Netherlands, Australia, New Zealand, Portugal, Poland, Belgium, the Czech Republic and Switzerland, in Japan marketed as Epoprostenol "ACT", and marketed as Caripul in both Canada and Italy. Ventavis (in CHF millions, except % ) 2015 2014 CHF % CER % Sales by region United States 31 25 26% 18% Europe - - nm nm Japan - - nm nm Rest of the world - - nm nm Sales excluding US rebate reversals 31 25 26% 18% US rebate reversals* - 3 Total 31 28 13% 6% Ventavis (iloprost) sales amounted to 31 million Swiss francs for the first quarter of 2015, an increase of 18% at CER or 6% including the impact of prior year US rebate reversals. This increase was driven entirely by price as sales volumes eroded by 12% due to competitive pressures. SPECIALTY PRODUCTS Valchlor (in CHF millions, except % ) 2015 2014 CHF % CER % Sales by region United States 4 1 nm nm Europe 1 - nm nm Japan - - nm nm Rest of the world - - nm nm Total 5 1 nm nm Valchlor (mechlorethamine) sales amounted to 5 million Swiss francs for the first quarter of 2015. The company is making progress in establishing Valchlor as an option in the treatment algorithm of early stage MF-CTCL. The nominative Temporary Authorization for Use (ATU) in France, initiated during the second half of 2014, is progressing well. Zavesca (in CHF millions, except % ) 2015 2014 CHF % CER % Sales by region United States 4 7-46% -46% Europe 13 14-7% 4% Japan 1 0 51% 64% Rest of the world 3 5-45% -42% Sales excluding US rebate reversals 20 26-23% -18% US rebate reversals* - (0) Total 20 26-23% -17% Zavesca (miglustat) sales amounted to 20 million Swiss francs for the first quarter of 2015, a decrease of 18% at CER compared to the first quarter of 2014 or 17% including the impact of prior year rebate reversals. This decrease is mostly driven by a shift in government purchasing in a number of markets as well as the launch of generic miglustat in Spain (approved for the Type-1 Gaucher disease indication only). Patient demand outside the US in the Niemann-Pick type C indication remains strong, particularly in Japan (where it is marketed as Brazaves ). Underlying units sold decreased by 13%.

7 OPERATING EXPENSES Operating expenses break down as follows: (in CHF millions, except % ) 2015 2014 CHF % CER % Operating expenses Core cost of sales 51 51 0% 0% Core research and development 97 82 18% 19% Core selling, general and administration 149 147 2% 4% Core operating expenses 297 280 6% 7% Depreciation of assets 9 10-5% -5% Amortization of acquired intangible assets 15 15-3% -4% Stock-based compensation 12 10 18% 18% Doubtful debt movements (0) (1) 67% 60% Accretion expenses (benefits) (8) 2 nm nm Other expenses 0 0 nm nm Non-core operating expenses 28 36-22% -23% Operating expenses US GAAP 326 316 3% 4% Cost of sales (in CHF millions, except % ) 2015 2014 CHF % CER % Cost of sales Royalty expenses 35 38-7% -7% Cost of goods sold 16 13 21% 21% Core cost of sales 51 51 0% 0% Non-core cost of sales (8) 2 nm nm Cost of sales US GAAP 43 52-18% -19% Royalty expenses decreased by 3 million Swiss francs due to the mix of product since the company pays a low singledigit royalty rate on sales of Opsumit and a high single-digit rate for Tracleer. Cost of goods sold include all manufacturing costs, internal costs and distribution costs relating to the supply of products to our affiliates. Core cost of goods sold increased by 3 million Swiss francs in line with higher product sales resulting in unchanged core cost of sales at 51 million Swiss francs. Non-core cost of sales relate to the accretion expense for the contingent consideration for Valchlor, which was reduced to reflect adjusted sales projections. This tranlates into a net accretion benefit of 8 million Swiss francs. Non-core cost of sales does not include any depreciation or amortization since all goods are manufactured by third parties. Research and development ( R&D ) expenses (in CHF millions, except % ) 2015 2014 CHF % CER % Core research and development expenses 97 82 18% 19% Depreciation 6 7-6% -6% Stock-based compensation 6 5 11% 11% Research and development expenses US GAAP 1 109 94 8% 9% Amortization of acquired intangible assets 0 1-21% -20% Research and development expenses US GAAP 110 95 16% 16% 1 As reported in the consolidated income statements, excluding amortization of acquired intangible assets.

8 Core R&D expenses amounted to 97 million Swiss francs for the first quarter of 2015, an increase of 19% at CER compared to the first quarter of 2014. This increase was driven by continued investment in the earlier-stage pipeline and a slight increase in clinical trial expenses as the company is preparing to advance its specialty immunology portfolio. Core R&D expenditure represented 19% of product sales for the first quarter 2015, unchanged from 2014 levels. Actelion will continue to focus on carefully balancing investments so as to ensure future growth and delivery of appropriate shareholder returns. US GAAP R&D expenses include depreciation relating to the research building and laboratory equipment of 6 million Swiss francs and stock-based compensation expenses of 6 million Swiss francs. Selling, general and administrative ( SG&A ) expenses (in CHF millions, except % ) 2015 2014 CHF % CER % Selling, general and administrative expenses Marketing, selling and distribution expenses 104 102 1% 4% General and administrative expenses 45 45 2% 3% Core selling, general and administrative expenses 149 147 2% 4% Depreciation 3 3-3% -3% Stock-based compensation 7 5 26% 26% Doubtful debt movements (0) (1) 67% 60% Selling, general and administrative expenses US GAAP 1 158 154 3% 5% Amortization of acquired intangible assets 14 15-3% -3% Selling, general and administrative expenses US GAAP 173 169 2% 4% 1 As reported in the consolidated income statements, excluding amortization of acquired intangible assets. Core SG&A amounted to 149 million Swiss francs for the first quarter of 2015, an increase of 4% at CER compared to the first quarter of 2014. This increase was driven mostly by costs related to the global launches of Opsumit and Veletri in various markets as well as preparations for the anticipated launch of selexipag (Uptravi ). US GAAP SG&A includes depreciation expenses of 3 million Swiss francs, stock-based compensation expenses of 7 million Swiss francs and the amortization of acquired intangible assets of 14 million Swiss francs. OPERATING RESULTS (in CHF millions, except % ) 2015 2014 CHF % CER % Operating results Product sales 515 469 10% 12% Core operating expenses (297) (280) 6% 7% Core operating results 218 189 15% 18% Contract revenue 1 0 30% 30% Non core operating expenses (28) (36) -22% -23% Operating results US GAAP 190 153 24% 28% Core operating results amounted to 218 million Swiss francs for the first quarter of 2015, an increase of 18% at CER compared to the first quarter of 2014. Excluding the impact of prior year rebate reversals, core operating results increased by 29% at CER. The top-line growth of 16% at CER, driven by intrinsic performance beyond buying pattern variations, grew faster than operating expenses resulting in operational leverage. US GAAP operating results amounted to 190 million Swiss francs for the first quarter of 2015, an increase of 28% at CER compared to the first quarter of 2014. This increase is driven by the strong core operating performance and enhanced by a decrease of non core operating expenses of 8 million Swiss francs relating to the accretion benefit for Valchlor.

9 NET RESULTS (in CHF millions, except % ) 2015 2014 CHF % CER % Net results Core operating results 218 189 15% 18% Core financial results (7) (1) nm nm Core income tax (26) (18) nm nm Core net results 185 170 9% 11% Core net results amounted to 185 million Swiss francs for the first quarter of 2015, an increase of 11% at CER compared to the first quarter of 2014. The core financial expense of 7 million Swiss francs includes the interest expense of the straight bond (3 million Swiss francs) and foreign exchange loss net of hedging limited to 4 million Swiss francs despite the Swiss National Bank decision on January 15, 2015 to discontinue the EUR / CHF 1.20 floor. The core tax expense of 26 million Swiss francs represents an effective tax rate of 12% on the core results before tax in the various countries where Actelion conducts its business. The company is expecting the tax rate to remain around the current level. (in CHF millions, except % ) 2015 2014 CHF % CER % Net results Operating results 190 153 24% 28% Financial results (7) (10) -34% -34% Income tax (24) (15) 59% 64% Net results US GAAP 159 128 25% 29% The US GAAP net results amounted to 159 million Swiss francs for the first quarter of 2015, an increase of 29% at CER compared to the first quarter of 2014. This increase is almost entirely driven by the strong operating performance, a stable effective tax rate and a lower financial expense. EARNINGS PER SHARE (EPS) (in CHF millions, unless otherwise indicated) 2015 2014 CHF % CER % Net results Core net results 185 170 9% 11% Net results US GAAP 159 128 25% 29% Basic earnings per share Weighted number of shares (in millions) 110.9 111.3 nm nm Basic EPS - Core (in CHF) 1.67 1.53 9% 11% Basic EPS - US GAAP (in CHF) 1.44 1.15 25% 29% Diluted earnings per share Weighted number of shares (in millions) 115.4 116.6 nm nm Diluted EPS - Core (in CHF) 1.61 1.46 10% 12% Diluted EPS - US GAAP (in CHF) 1.38 1.09 26% 30% The increase in earnings per share was driven mostly by the higher net income. The share count for basic earnings per share was slightly lower, mainly due to timing differences between option exercises and purchase of treasury shares to offset the dilution.

10 The dilutive share count decreased, as the average number of outstanding instruments decreased by 4 million, despite a higher average share price. IMPACT OF FOREIGN EXCHANGE RATES ON SALES AND OPERATING RESULTS Actelion s exposure to foreign currency movements affecting its sales and operating results as expressed in Swiss francs is summarized in the following tables. 2015 2014 (in CHF millions, except % ) CHF % CER % CHF CER CHF % CER % CHF CER Reported growth versus prior year Product sales 10% 12% 46 55 8% 13% 36 58 Core operating results 15% 18% 29 34 12% 19% 20 32 Operating results - US GAAP 24% 28% 37 43 23% 33% 29 40 Core net results 9% 11% 15 19 21% 29% 29 41 Net results - US GAAP 25% 29% 32 37 30% 40% 30 40 Closing rate Average rate Closing rate Average rate March 31, 2015 First quarter 2015 March 31, 2014 First quarter 2014 Exchange rates against Swiss franc US dollar 1 USD 0.972 0.953 0.884 0.894 Euro 1 EUR 1.046 1.077 1.219 1.224 Japanese yen 100 JPY 0.811 0.800 0.856 0.869 IMPACT OF OTHER EVENTS ON SALES AND OPERATING RESULTS The Group recognizes revenue from product sales when there is persuasive evidence that a sales arrangement exists, delivery has occurred, the price is fixed or determinable and collectibility is reasonably assured. Provisions for rebates and discounts granted to government agencies, wholesalers, retail pharmacies, managed care organizations and other customers are recorded as a reduction of revenue at the time the related revenues are recognized or when the incentives are offered. They are calculated on the basis of historical experience and the specific terms in the individual agreements. Estimating such rebate accruals is a complex process and requires significant judgment, especially for rebates granted in the context of US reimbursement programs (mainly governmental programs such as Medicaid and Managed Medicaid), due to the time-lag between the date of sale and the actual settlement of the liability, changes in regulations for the various rebate programs, and changing utilization rates and patient populations. During 2014, the company has been adjusting its estimates of US rebate accruals during 2013 and 2014, which resulted in a positive impact both on sales and core operating income. The reversal of these extraordinary rebates is now completed and no additional meaningful reversals occurred during the first quarter 2015, or are expected to occur going forward. The table below shows Actelion s first quarter 2015 performance compared to the prior year where rebate reversals were excluded: (in CHF millions, except % ) 2015 2014 CHF CHF % CER CER % Product sales performance Product sales as reported 515 469 46 10% 55 12% Impact of US rebate reversals - (18) 18-18 - Product sales excluding US rebate reversals 515 450 64 14% 73 16% Core operating performance Core operating results as reported 218 189 29 15% 34 18% Impact of US rebate reversals - (17) 17-17 - Core operating results excluding US rebate reversals 218 172 45 26% 51 29%

11 CASH FLOW AND CASH POSITION Operating cash flow (in CHF millions) 2015 2014 Operating cash flow Net results 159 128 Depreciation and amortization 24 25 Stock-based compensation 13 11 Other non cash items (26) 17 Funds from operations 1 170 181 Net change in trade and other receivables (60) (4) Net change in trade and other payables (4) (22) Net change in deferred tax assets and liabilities 15 3 Net change in other operating assets and liabilities (27) (62) Decrease (increase) in operating working capital (76) (85) Operating cash flow 1 94 96 1 Excluding litigation settlement. Operating cash flow amounted to 94 million Swiss francs for the first quarter of 2015. The strong underlying business performance resulted in funds from operations of 170 million Swiss francs despite a negative impact of other non cash items driven by foreign exchange movements. Changes in net working capital requirements amounted to 76 million Swiss francs for the first quarter of 2015 mostly driven by an increase of 60 million Swiss francs in trade receivables due to the strong level of sales; cash collection remains solid with days sales outstanding (DSO) at a record low of 58 days. Free cash flow (in CHF millions) 2015 2014 Free cash flow Operating cash flow 94 96 Acquisition of tangible, intangible and other assets (6) (6) Acquisition of businesses (1) (0) Operating free cash flow 88 90 Litigation settlement - (458) Cash released from (restricted for) litigation - 609 Acquisition of shares from the first line purchase program (160) (272) Proceeds from exercise of stock options, net of expense 22 116 Other items (7) 3 Free cash flow (57) 88 Free cash flow reconciles the gross cash positions between opening and closing period. Free cash flow was negative at 57 million Swiss francs for the first quarter of 2015 due to the first line share purchase program. Operating free cash flow of 88 million Swiss francs was driven by the strong operating performance and limited capital expenditure. The company initiated, in December 2013, a 10 million share purchase program in order to mitigate dilution arising from employee stock compensation programs. The company purchased in the first quarter of 2015 1.4 million shares at an average price of 111.40 Swiss francs for a cash consideration of 160 million Swiss francs on the first line of the SIX Swiss Exchange. On March 31, 2015 77% of the program was completed. Employees exercised 0.4 million stock options during the first quarter of 2015, resulting in proceeds of 22 million Swiss francs.

12 Gross cash position The gross cash position amounted to 1,148 million Swiss francs on March 31, 2015 and breaks down by currency as follows: March 31, Closing rate (CHF millions unless otherwise indicated) 2015 in % against CHF Gross cash position by currency Swiss franc 756 66% - US dollar 171 15% 1 USD = 0.97 Euro 133 12% 1 EUR = 1.05 Japanese yen 38 3% 100 JPY = 0.81 Other foreign currencies 50 4% - Total gross cash position 1,148 100% - The net cash position amounted to 913 million Swiss francs at the end of the first quarter of 2015, taking into account the straight bond of 235 million Swiss francs repayable in December 2015. Actelion has been consistently applying a hedging policy by using derivative instruments (mainly forward contracts) in order to limit volatility in its financial results. Such derivative instruments aim to compensate for the unrealized potential gains or losses on the assets and liabilities denominated in foreign currencies held by Swiss entities of Actelion. At the end of the first quarter of 2015, the derivative instruments had a negative value of CHF 10 million. BALANCE SHEET (in CHF millions) March 31, 2015 December 31, 2014 Assets Gross cash position 1 1,148 1,205 (57) Trade and other receivables, net 434 400 34 Other current assets 117 121 (4) Tangible assets 361 368 (7) Intangible assets 427 441 (14) Goodwill 134 134 (1) Other non-current assets 69 78 (10) Total assets 2,690 2,748 (58) Liabilities and shareholders' equity Other current liabilities 384 429 (45) Financial debt 235 235 (0) Other non-current liabilities 141 163 (22) Total liabilities 760 827 (67) Share capital and accumulated reserves 2,234 2,208 26 Treasury shares (305) (288) (17) Total shareholders' equity 1,929 1,920 9 Total liabilities and shareholders' equity 2,690 2,748 (58) 1 Gross cash position includes cash, cash equivalents and short-term deposits. The company continues to have a strong balance sheet ensuring full financial flexibility. At the end of the first quarter 2015, Actelion held 3 million treasury shares (305 million Swiss francs) at an average price of 101.75 Swiss francs.

13 As announced on March 23, 2015, Actelion has commenced, on April 9, 2015, a new share repurchase program of up to 10 million shares of Actelion s common stock. This share repurchase program is being carried out via a new second trading line at the SIX Swiss Exchange over a period of three years and the Board will propose the cancelation of these repurchased shares at subsequent Annual General Meetings. Treasury shares (in thousands) Average price (in CHF) Treasury shares (in CHF million) First line treasury shares December 31, 2014 3,000 95.90 288 Purchase of treasury shares 1,438 111.44 160 Exercise of options by employees (424) 99.12 (42) Vesting of Restricted Stock Units (1,014) 99.28 (101) Other share allocations (2) 95.80 (0) March 31, 2015 2,997 101.75 305 Treasury shares - total December 31, 2014 3,000 95.90 288 Change in first-line treasury shares (3) nm 17 Change in second-line treasury shares - - - March 31, 2015 2,997 101.75 305 QUARTERLY RESULTS Q2 2014 Q3 2014 Q4 2014 Q1 2015 (in CHF millions) three months three months three months three months Core operating results Product sales 524 496 468 515 Operating expenses (291) (287) (355) (297) Operating results 233 209 113 218 Financial results (1) (8) (8) (7) Income tax results (25) (24) (10) (26) Net results 207 176 94 185 Operating results US GAAP Net revenue 524 496 468 515 Operating expenses (330) (324) (417) (326) Operating results 194 172 51 190 Financial results (1) (8) (14) (7) Income tax results 99 (18) (9) (24) Net results 293 146 28 159

14 RECONCILIATION US GAAP TO CORE RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2015 Depreciation, (in CHF millions, except per share amounts) US GAAP amortization and results impairment Stock-based Doubtful debt Milestones or compensation movements contract Accretion expense Core results Net revenue Product sales 515 - - - - - 515 Contract revenue 1 - - - (1) - - Total net revenue 515 - - - (1) - 515 Operating (expenses) Cost of sales (43) - - - - (8) (51) Research and development (109) 6 6 - - - (97) Selling, general and administration (158) 3 7 0 - - (149) Amortization of acquired intangible assets (15) 15 - - - - - Total operating (expenses) (326) 24 12 0 - (8) (297) Operating results 190 24 12 0 (1) (8) 218 Total financial results (7) - - - - - (7) Income before income tax benefit (expense) 183 24 12 0 (1) (8) 211 Income tax benefit (expense) (24) (3) 0 0 0 - (26) Net results 159 21 13 0 (0) (8) 185 Diluted net income (loss) per share 1.38 0.18 0.11 0.00 (0.00) (0.07) 1.61 Weighted-average number of common shares (in thousands) 115.350 - - - - - 115.350

15 FIRST QUARTER CONSOLIDATED FINANCIAL STATEMENTS

16 FIRST QUARTER CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENTS (in CHF thousands, except per share amounts) 2015 2014 (unaudited) (unaudited) Net revenue Product sales 514,874 468,747 Contract revenue 501 386 Total net revenue 515,375 469,133 Operating (expenses) 1 Cost of sales 2 (43,095) (52,491) Research and development (109,246) (94,197) Selling, general and administration (158,410) (154,340) Amortization of acquired intangible assets (14,789) (15,291) Total operating (expenses) (325,540) (316,319) Operating income 189,835 152,814 Interest on litigation - (9,814) Interest income (expense), net (2,724) (2,233) Other financial income (expense), net (4,186) 1,554 Total financial income (expense) (6,910) (10,493) Income before income tax benefit (expense) 182,925 142,321 Income tax benefit (expense) (23,561) (14,812) Net income (loss) 159,364 127,509 Basic net income (loss) per share 1.44 1.15 Weighted-average number of common shares (in thousands) 110,927 111,300 Diluted net income (loss) per share 1.38 1.09 Weighted-average number of common shares (in thousands) 115,350 116,569 1 Includes stock-based compensation as follows: Research and development (5,647) (5,108) Selling, general and administration (6,715) (5,343) Total stock-based compensation (12,362) (10,451) 2 Excludes amortization of intangible assets as presented separately.

17 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in CHF thousands) 2015 2014 (unaudited) (unaudited) Net income (loss) 159,364 127,509 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments (32,474) (286) Amortization of components of net periodic benefit costs 474 - Other comprehensive income (loss), net of tax (32,000) (286) Comprehensive income (loss) 127,364 127,223

18 CONSOLIDATED BALANCE SHEETS (in CHF thousands, except number of shares) March 31, 2015 December 31, 2014 (unaudited) (audited) Assets Current assets Cash and cash equivalents 1,148,029 1,204,958 Derivative instruments 4,544 2,894 Trade and other receivables, net 434,218 400,291 Inventories 54,661 60,879 Other current assets 58,168 57,316 Total current assets 1,699,620 1,726,338 Non-current assets Property, plant and equipment, net 360,849 367,755 Intangible assets, net 426,720 440,899 Goodwill 133,899 134,497 Deferred tax assets 52,923 62,648 Other non-current assets 15,650 15,684 Total non-current assets 990,041 1,021,483 Total assets 2,689,661 2,747,821 Liabilities and shareholders' equity Current liabilities Trade and other payables 67,833 74,140 Accrued expenses 288,719 302,360 Short-term financial debt 235,101 235,137 Other current liabilities 27,783 52,950 Total current liabilities 619,436 664,587 Non-current liabilities Pension liability 50,962 61,807 Contingent consideration 77,298 87,007 Other non-current liabilities 12,551 13,997 Total non-current liabilities 140,811 162,811 Total liabilities 760,247 827,398 Shareholders' equity Common shares (par value CHF 0.50 per share; authorized 154,125,927 and issued 114,128,427 shares in 2015 and 2014, respectively) 57,064 57,064 Accumulated profit 2,417,842 2,359,573 Treasury shares, at cost (304,979) (287,701) Accumulated other comprehensive income (loss) (240,513) (208,513) Total shareholders' equity 1,929,414 1,920,423 Total liabilities and shareholders' equity 2,689,661 2,747,821

19 CONSOLIDATED STATEMENTS OF CASH FLOWS (in CHF thousands) 2015 2014 (unaudited) (unaudited) Cash flow from operating activities Net income (loss) 159,364 127,509 Adjustments to reconcile net income to net cash provided from operating activities: Depreciation and amortization 24,037 25,038 Stock-based compensation, incl. treasury shares to members of Board of Directors 12,578 10,682 Excess tax benefits from share-based payment arrangements (6,866) (2,524) Deferred taxes 15,206 5,217 Deferred revenue 981 (388) (Gains) Losses on derivative instruments and marketable securities (21,807) 3,228 Interest expense on bonds and litigation 2,977 12,791 Accretion expense (benefit) on contingent considerations (7,891) 1,642 Changes in operating assets and liabilities: Litigation provision - (457,700) Trade and other receivables (60,105) (3,630) Inventories 5,952 (6,633) Trade and other payables (3,901) (22,029) Accrued expenses (6,456) (55,316) Changes in other operating cash flow items (19,693) 272 Net cash flow provided by (used in) operating activities 94,376 (361,841) Cash flow from investing activities Cash and cash equivalents released from litigation - 608,698 Purchase of short-term and long-term deposits - (100,000) Proceeds from short-term and long-term deposits - 150,747 Purchase of property, plant and equipment (4,620) (4,883) Purchase of intangible assets (1,116) (1,029) Acquisition of a business, incl. contingent consideration payments (501) (33) Net cash flow provided by (used in) investing activities (6,237) 653,500 Cash flow from financing activities Payments on capital leases (3) (15) Proceeds from exercise of stock options, net of expense 22,357 115,763 Purchase of treasury shares (160,201) (271,991) Excess tax benefits from share-based payment arrangements 6,866 2,524 Net cash flow provided by (used in) financing activities (130,981) (153,719) Net effect of exchange rates on cash and cash equivalents (14,087) 507 Net change in cash and cash equivalents (56,929) 138,447 Cash and cash equivalents at beginning of period 1,204,958 627,640 Cash and cash equivalents at end of period 1,148,029 766,087

20 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY Common shares Accum. other comprehensive (in CHF thousands, except number of shares) Shares Amount Additional paid-in capital Accum. profit Treasury shares income (loss) Shareholders equity At January 1, 2014 111,128,427 60,138 500,502 1,882,266 (542,558) (191,345) 1,709,003 Comprehensive income (loss), net of tax: Net income (loss) - - - 127,509 - - 127,509 Other comprehensive income (loss) - - - - - (286) (286) Comprehensive income (loss), net of tax - - - 127,509 - (286) 127,223 Excess tax benefits (underrealization) from share-based payment arrangements - - 2,515 - - - 2,515 Transactions in treasury shares, net 9,198 - (108,007) - (47,991) - (155,998) Stock-based compensation expense - - 10,478 - - - 10,478 At March 31, 2014 (unaudited) 111,137,625 60,138 405,488 2,009,775 (590,549) (191,631) 1,693,221 Comprehensive income (loss), net of tax: Net income (loss) - - - 466,287 - - 466,287 Other comprehensive income (loss) - - - - - (16,882) (16,882) Comprehensive income (loss), net of tax - - - 466,287 - (16,882) 449,405 Excess tax benefits (underrealization) from share-based payment arrangements - - 9,888 - - - 9,888 Transactions in treasury shares, net (9,198) - (94,342) - (46,216) - (140,558) Stock-based compensation expense - - 41,856 - - - 41,856 Cancelation of treasury shares - (3,074) (229,501) (116,489) 349,064 - - Dividend payment - - (133,389) - - - (133,389) At December 31, 2014 (audited) 111,128,427 57,064-2,359,573 (287,701) (208,513) 1,920,423 Comprehensive income (loss), net of tax: Net income (loss) - - - 159,364 - - 159,364 Other comprehensive income (loss) - - - - - (32,000) (32,000) Comprehensive income (loss), net of tax - - - 159,364 - (32,000) 127,364 Excess tax benefits (underrealization) from share-based payment arrangements - - 6,866 - - - 6,866 Transactions in treasury shares, net 2,693 - (19,254) (101,095) (17,278) - (137,627) Stock-based compensation expense - - 12,388 - - - 12,388 At March 31, 2015 (unaudited) 111,131,120 57,064-2,417,842 (304,979) (240,513) 1,929,414