Group Management <strong>Report</strong> <strong>2006</strong>
Group Management <strong>Report</strong> Business and operating environment Overview The world economy in <strong>2006</strong> maintained the positive development of the previous year. Economic growth was broadly based. The primary contributors to this were the economies of East Asia, the United States and the euro zone too, which in <strong>2006</strong> showed a strong increase in its real gross domestic product (GDP). In Germany too economic development in <strong>2006</strong> was favourable. With a growth rate of 2.7 %, real GDP was higher than it had been since 2000. In contrast to the previous years, domestic demand, alongside continued, strong exports, also contributed decisively to this gratifying development. In particular, the sales Net sales by businesses <strong>2006</strong> (in millions of EUR) Prescription Medicines 7,247 Consumer Health Care 1,052 Biopharmaceuticals 548 Pharma Chemicals and Pharmaceuticals Production 299 Animal Health 361 ’05 ’06 8,311 1,064 503 306 374 100 <strong>Boehringer</strong> <strong>Ingelheim</strong> A n n u A l R e p o R t 2 0 0 6 tax increase, from 16 % to 19 %, announced for 2007, led to extensive purchases of durable consumer goods being brought forward. The pleasing development in <strong>2006</strong> also extended to the labour market. The number of unemployed fell distinctly and the number of people in employment rose further. The favourable economic development can, however, only to a very limited extent be applied to the research-driven pharmaceutical industry. The growth rate for the world pharmaceutical industry, discounting currency effects, slowed again in <strong>2006</strong> – already the third year in succes- sion. The reasons for this development are various. In first place is certainly the fact that a number of important products from leading pharmaceutical Net sales by region <strong>2006</strong> Net (in millions sales by of region EUR) <strong>2006</strong> (in millions of EUR) Americas Americas 4,559 4,559 Europe Europe 3,117 3,117 Asia, Australasia, Asia, Australasia, Africa Africa 1,859 1,859 ’05 ’06 ’05 ’06 5,388 5,388 3,295 3,295 1,891 1,891 Total Total 9,535 9,535 10,574 10,574
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Value through Innovation Annual Rep
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Contents 1 Value Through Innovation
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The Shareholders’ Perspective Dea
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Key Aspects of 2006 2006 was again
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This growth was clearly restrained
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Shareholders’ Committee Dr Heribe
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“There is help” “The woman wh
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1 continued from page 10 A Kenyan m
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1 Our people In pursuing our vision
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Company childcare enters new territ
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1 Caring for our neighbours We are
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0 Children from St Margaret Clither
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Our environment & employee safety A
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thanks to the use of the wood-fired
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Our goals We shall continue to inve
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Targeting tomorrow’s therapies Th
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0 continued from page 28 “Boehrin
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Our R & D strategy Research and dev
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Ridgefield, USA Cardiovascular, imm
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Vienna, Austria Oncology Boehringer
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Our expertise in landmark studies L
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From mind to man - the R & D proces
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New biological entities (NBE) One o
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The development of our businesses W
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Rin Fujima, Kyoto, Japan, suffers f
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Comparison of Balance Sheets/ Finan