Annual Report 2006 - Boehringer Ingelheim

To summarise, we see the success of 2006 once
again as confirmation of our business efforts.
In the business areas Research and Development,
Production, Marketing and Sales we regard
ourselves as well-equipped and look to the future
with confidence.
The most important figures for earnings for 2006
are as follows:
(in millions of EUR) 2006 2005 Change
Net sales 10,574 9,535 +10.9 %
Operating income 2,140 1,923 +11.3 %
Return on net sales (as %) 20.2 20.2
Research and Development
Boehringer Ingelheim has firmly anchored
in its guiding principles (Leitbild) the mission
of helping people suffering from diseases by
researching innovative medicines. Against this
background, the worldwide deployment of
resources in research and development are of
prime importance. In the reporting period,
Boehringer Ingelheim spent EUR 1,574 million
in this business area, thereby increasing our
R&D expenditure by 15.7 % against the previous
period and again investing 14.9 % of our net sales
in our own R&D activities.
In our Human Pharmaceuticals business, R&D
expenditure as a share of net sales was 15.0 %
(2005: 14.4 %). We have distributed our global
research activities to our sites in Germany, the
USA, Austria and Canada. In addition to each
site’s focussing on certain fields of research,
numerous international project teams ensure
that necessary know-how concerning successful
project management is available. Boehringer
Ingelheim has concentrated its R&D on seven
therapeutic areas:
• respiratory diseases
• virology
• oncology
• metabolic diseases
• cardiovascular diseases
• central nervous system diseases
• immunology and inflammation
Research and development 2006 2005 2004 2003 2002
Total expenditure (in millions of EUR) 1,574 1,360 1,232 1,176 1,304
– as % of net sales 14.9 14.3 15.1 15.9 17.2
Human Pharma. expend. (in millions of EUR) 1,527 1,318 1,195 1,140 1,264
– as % of HP net sales 15.0 14.4 15.3 16.1 17.4
Average number of employees 6,003 5,678 5,471 5,362 5,205
Investments in tangible assets (in millions of EUR;
without investments in infrastructure) 125 116 97 93 97
Group Management Report 103