PowerPoint 2000 Presentation - Merck KGaA

4 th
Quarter and Full Year 2009 Results
Dr. Karl-Ludwig Kley – General Partner and Chairman of the Executive Board
Dr. Michael Becker – General Partner and Member of the Executive Board, Chief Financial Officer
Elmar Schnee – General Partner and Member of the Executive Board, Head of Pharmaceuticals
Dr. Bernd Reckmann – General Partner and Member of the Executive Board, Head of Chemicals
February 23, 2010

Disclaimer
Remarks
All comparative figures relate to the corresponding last year’s period. From 2007 the Generics business is reported in
“discontinued operations”. Return on Sales (ROS) calculation is based on total revenues.
Important Information
This presentation does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the
United States. The shares referred to herein have not been and will not be registered under the U.S. Securities Act of
1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration under the
Securities Act or an available exemption from such registration.
Note regarding forward-looking statements
The information in this document may contain “forward-looking statements.” Forward-looking statements may be identified
by words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words of similar
meaning and include, but are not limited to, statements about the expected future business of Merck KGaA resulting from
the proposed transaction. These statements are based on the current expectations of management of Merck KGaA and
E. Merck KG, and are inherently subject to uncertainties and changes in circumstances. Among the factors that could
cause actual results to differ materially from those described in the forward-looking statements are factors relating to
satisfaction of the conditions to the proposed transaction, and changes in global, political, economic, business,
competitive, market and regulatory forces. Merck KGaA and E. Merck KG do not undertake any obligation to update the
content of this presentation and forward-looking statements to reflect actual results, or any change in events, conditions,
assumptions or other factors.
Page 2

Table Of Contents
Analyst’s Presentation February 23, 2010
1
2
3
4
Executive Summary and Business Strategies –
Financials
–
Michael Becker
Developments Pharmaceuticals –
Developments Chemicals –
5 Appendix A - F from Page 35
Elmar
Schnee
Bernd Reckmann
Karl-Ludwig Kley
Page 3

Merck Group
FY 2009 at a Glance
Development Total Revenues and Core Operating Result 2005 – 2009
€m
10,000
8,000
6,000
4,000
2,000
0
Core Operating Result Total Revenues
5,865 6,284
883
1,105
7,057
1,752 1,735
7,590** 7,747
1,296
2005 2006 2007* 2008* 2009*
• Group Revenues +2.1% – strong sales
despite rough economic environment
•
Core Operating Result down 25.3% due to
difficult economic environment
• Merck Serono on track despite setbacks
•
•
Liquid Crystals recovering after trough at the
beginning of 2009
Results vindicate Merck’s risk-diversified
business model
* Core operating result = operating result less costs related to the purchase of Serono (amortization of intangible assets and integration costs).
2005 and 2006 operating result
** 2008 adjusted; total revenues now shown incl. commission income
Page 4

Merck Group
FY 2009 - Sales by Region
in € million
1,171
948
223
North America
+15.4%
942
800
142
Europe
-4.2%
Latin America
+16.9%
3,374
2,876
498
1,891
835
1,056
Asia/Africa
Australasia
+1.8%
Pharmaceuticals
Chemicals
Page 5

Merck Group
FY 2009 by Division
Revenues by Division €m Operating Result by Division €m
5,014
+6.6%
5,345
Merck
Serono
+5.7%
442
467
Consumer
Health Care
878
-17%
733
Liquid
Crystals
-3.8%
1,249 1,202
2009
2008
Performance
& Life Science
Chemicals
1,197
-16%
1002
Merck
Serono*
61
* Core Operating Result
-21%
48
Consumer
Health Care
391
-42%
227
Liquid
Crystals
-42%
167
2009
2008
97
Performance
& LifeScience
Chemicals
Page 6

Merck Group
FY 2009 - Close to Group Guidance
Guidance
(Oct. 2009)
Merck Serono +6% +7%
* Merck Serono and Group ROS guidance based on core operating result
Total Revenues Return on Revenues
Actual FY09
Results
Liquid Crystals –20% –17%
Merck Group +2% +2%
Guidance
(Oct. 2009)
(ROS) *
Actual FY09
Results
20% 19%
30% 31%
17% 17%
Page 7

Merck Group
FY 2009 – Progress in Strategy
Merck Serono
Consumer
Health Care
Liquid Crystals
Performance &
Life Science
Chemicals
• Successful life-cycle management & sustained double-digit growth of key
products Rebif and Erbitux
• Erbitux growth continues despite negative CHMP opinion in lung
• Cladribine tablets in MS in registration in EU; closely working with FDA to
address RTF issues and to prepare re-submission in the US at earliest stage
• China: Sales doubled since 2007; €150 million investment to expand local R&D
• Biologics business in Japan quadrupled in 2009
•
•
•
•
•
•
•
•
•
•
Second-fastest growing TOP 20 company globally
Total organic growth 9%, strategic brands 16%
Recovery of the Liquid Crystal business – stabilizing on a high level
Usage of PS-VA technology increased
Investing into LC innovations OLED, printed electronics, and photovoltaic applicat.
Market & technology leadership maintained
Pigments business recovering
Acquisition of Taizhu in China broadened Pigments business
Laboratory Business: Stable business in difficult environment
Life Science Solutions: Extended strategic partnerships with global customers
CHMP: Committee – of the European Medicines Agency (EMA) - for Medicinal Products for Human Use
MS: Multiple Sclerosis
Page 8

Merck Group
FY 2009 - Ongoing commitment to R&D
R&D Expenses
1.600
1.400
1.200
1.000
800
600
400
200
0
1,028
137
891
1,234
143
1.091
1,345
141
1.203
2007 2008 2009
Pharmaceuticals Chemicals
in € million
"Best Pharma" - Research within Merck Serono
One result of Merck Chemicals' research:
Organic Solar Cells
Page 9

Merck Group
Operating Result Q4 2009
€ million Q4 2009 Q4 2008 Δ in %
Total revenues 2,028.8 1,915.4 5.9
Gross margin 1,495.8 1,421.8 5.2
SG&A -875.8 -741.1 18.2
Research & development -358.3 -385.7 -7.1
Amortization of intangibles -217.0 -152.3 42.5
Operating result 44.1 141.9 -68.9
Core operating result 1) 257.5 306.0 -15.8
1) Core operating result = Operating result less costs related to the purchase of Serono (amortization of intangible assets and integration costs)
•
•
•
•
•
•
Gross margin back to normal
level at around 74%
Marketing & selling costs stable
Admin. Costs are down 16%
compared with higher than
usual costs in previous year
Other operating expenses incl.
allowance for Greece (-11 €m),
provisions Venezuela (-16 €m),
litigation expenses (-110 €m)
and asset impairments (-29 €m)
High R&D expense by Pharma
but lower than previous year
due to high spending Q4 2008
Amortization of intangibles
increased due to impairments in
Merck Serono of 72 €m
(Puregon and Enbrel)
Page 10

Merck Group
Operating Result Full Year 2009
€ million FY 2009 FY 2008 Δ in %
Total revenues 7,747,0 7,589.6 2.1
Gross margin 5,717.7 5,683.6 0.6
SG&A -3,069.9 -2,744.5 11.9
Research & development -1,344.6 -1,234.4 8.9
Amortization of intangibles -657.8 -573.4 14.7
Operating result 648.9 1,131.4 -42.6
Core operating result 1) 1,295.9 1,735.1 -25.3
1) Core operating result = Operating result less costs related to the purchase of Serono (amortization of intangible assets and integration costs)
•
•
•
•
•
Gross Margin holds up well
considering price pressure in
Liquid Crystals and idle
capacity in Liquid Crystals and
Pigments
Marketing & selling costs are
pushed up by commission
expenses in Merck Serono
Administration costs are down
due to tight cost control
Other operating expenses
include allowance for
Greece (-13 €m), provision for
Venezuela (-68 €m),
litigation expenses (-167 €m),
and asset impairments (-38 €m)
Amortization of intangibles
affected by Q4 one-off
Page 11

Merck Group
Profit after Tax Full Year 2009
€ million FY 2009 FY 2008 Δ in %
Operating result 648.9 1,131.4 -42.6
Exceptionals -28.0 -400.0 -93.0
EBIT 620.9 731.4 -15.1
Financial result -134.5 -156.5 -14.1
Profit before tax 486.4 574.9 -15.4
Income tax -109.7 -195.9 -44.0
Underlying tax rates 21.6% 25.8%
Profit after tax 376.7 379.1 -0.6
Minorities -10.4 -12.0 -13.5
Net income 366.3 367.1 -0.2
EPS (€) 1) reported 1.68 1.69 -0.6
Core EPS (€) 2) 4.44 5.73 -22.5
• Exceptionals Q4 2009 :
• Raptiva provision (exit) of
- 70 €m in Q1 down to
- 40 €m (+30 €m) in Q4
• Sale of natural products
business in Brazil
generates profit of +11 €m
• Better financial result due to
lower debt and lower interest
rates
• Development of Core EPS
influenced by exceptionals of
400 €m in 2008
1) According to IAS 33 EPS is calculated on the average weighted number of shares (FY 2009 and FY 2008: 217.4m)
2) Core EPS: Based on net income less costs related to the purchase of Serono (amortization of intangible assets and integration costs) and exceptionals
Page 12

Merck Group
Key Cash Flow Data
€ million FY 2009 FY 2008 Δ in €m
Profit after tax 376.7 379.1 -2.4
Depreciation/amortization 1,003.8 1,215.4 -211.6
Changes in working capital 25.7 -304.3 329.9
Capital expenditures -467.3 -394.7 -72.6
Others -126.4 -457,0 330,7
Free cash flow 812.4 438.4 374.0
Underlying free cash flow
(before acquisition and divestments)
851.6 601.3 250.3
•
•
•
•
Depreciation/amortization with
less impairments than 2008
Good working capital
management, e.g. inventory
decrease despite higher sales
Capex at Merck Serono higher
by 82 €m (Biomanufacturing)
Others reflect high level of
provisions included in profit
after tax and lower acquisitions
and purchase of intangibles
Page 13

Merck Group
Key Balance Sheet Data
€
million Dec. 31,
2009
in %
of total
assets
Dec. 31,
2008
Total assets 16,713 100 15,645
Equity 9,514 57 9,563
Cash & other liquid funds 2.044 12.2 870
Intangible assets 7,599 45 8,203
Financial debt 2,307 14 1,346
Pension provisions
thereof covered by financial assets
1,312
210
7.9
1.3
1,144
Net financial debt 263 1.6 477
0
•
•
•
Cash and other liquid funds as
well as financial debt up
following 750 €m bond and
230 €m private placements
leading to slightly reduced
equity ratio
210 €m financial assets
covering pensions
Net financial debt exclude
financial assets covering
pensions
Page 14

Merck Group
Outlook FY 2010
Merck Serono
Merck Serono Core
Consumer Health Care
Liquid Crystals
Performance & Life Science Chemicals
Merck Group
Merck Group Core
Revenue Growth
FY 2010
+ 2-5%
+ 5-10%
+ 5-10%
+ 3-8%
+ 3-7%
Operating Result
Growth FY 2010
30-40%
0-10%
-10-0%
15-25%
15-20%
20-30%
3-13%
Page 15

Pharmaceuticals
Overview Q4 2009
Merck
Serono
Consumer
Health
Care
Merck Serono
1,393 €m
Pharma
Revenues Q4 2009: 1,525 €m
Consumer Health Care
132 €m
• Focus on specialist and innovative drugs in prescription markets
• Build two core therapeutic areas & emerging AIID area, backed by
strong established foundations
• Improve R&D efficiency and leverage biopharmaceutical expertise
• Focus on over-the-counter pharma products in four health themes
• Grow key brands through regional expansion
• Strengthen business in established markets
Page 16

Merck Serono
Key Financials Q4 2009
€ million Q4 2009 Q4 2008 Δ in %
Sales 1,298.3 1,226.1 5.9
Royalty/commission
income
Marketing & selling
(excl. commission and royalty expenses)
94.3 110.2 -14.4
-345.4 -368.7 -6.3
Royalty/commission exp. -107.5 -87.9 22.3
Research & development -316.3 -340.2 -7.0
Core operating result* 144.4 224.2 -35.6
Core ROS (return on
revenues)
10.4% 17.3%
Underlying free cash flow
(before acquisitions and divestments) 185.8 111.1 67.2
* Core operating result = Operating result less costs related to the purchase of Serono (amortization of intangible assets and integration costs)
• Organic revenue growth +7.2%;
slight headwind from FX (-2.2%)
• Commission and royalty income
continuing to decrease as expected
• Lower marketing & selling compared
to Q4/2008 due to exceptionally high
expenses in Q4/2008, increase
compared to Q3 2009 due to yearend
spending
• Higher royalty and commission
expenses because of higher sales of
in-licensed products and copromotion
in cooperation with
partners
• High R&D expenses, but Q4/09 vs
Q4/08 lower due to exceptionally
high expenses in Q4/2008
• Free cash flow up due to improved
working capital management
Page 17

Merck Serono
Operational Developments Q4 2009
Sales by Therapeutic Area
Neurodegen.
Diseases
Oncology
Fertility
Endocrinology
CMC/local
Rebif
Er bitux
Gonal-f
Concor
Glucophage
Saizen
51
47
70
63
76
66
128
115
99
107
189
144
165
144
+11%
Sales by Top 6 Products
187
141
-7.3%
+15%
+7.9%
+15%
+11%
+31%
+33%
402
360
401
360
+12%
470
486
+11%
€m
Q4 2009
Q4 2008
-3.5%
€m
Q4 2009
Q4 2008
•
•
•
•
•
Rebif with 5% growth in Europe supported
by launch of RebiSmart
Erbitux performance driven by:
•
•
Launch of 1st line head & neck cancer
in Q4 2008
Strong penetration into metastatic
colorectal cancer 1st line following
personalization of treatment for KRAS
wild-type patients in Q3 2008
Gonal-f continues to be strong supported by
launch of New Generation Gonal-f pen;
further penetration of Pergoveris
Glucophage sales growth driven by good
performance in emerging markets
Sustained growth with Saizen supported by
easypod device; further penetration of
Kuvan into additional markets
Page 18

Merck Serono
Neurodegenerative Diseases
Rebif
•
Continued rollout of the electronic injection device RebiSmart;
now available in more than 10 countries (key EU & Canada)
Cladribine Tablets
•
USA: Working closely with FDA to address RTF issues and to
to prepare re-submission at earliest possible time
Atacicept (incl. AIID)
•
Phase II trials terminated in 2009:
–
–
MS: Voluntary discontinuation of Phase II program after
observation of increased disease activity in some
atacicept-treated patients in one study (September 2009)
RA (AIID): Decision not to move to Phase III due to
insufficient clinical efficacy in order to develop a
competitive product profile
Merck Rebif Sales €m
368 387 381 401
360
313 320
338
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Page 19

Merck Serono
Oncology
Erbitux
•
Committee for Medicinal Products for Human Use (CHMP*)
adopted negative opinion for treatment of lung cancer (Nov. 09)
after Merck had requested re-examination of first negative CHMP
Opinion received in July 09
Stimuvax
•
Expanded Phase III clinical trial program
–
–
–
Cilengitide
•
START (NSCLC) ongoing
STRIDE (breast cancer – initiated June 2009)
INSPIRE (NSCLC – Asian regions – initiated December 2009)
Ongoing Phase III trial in Glioblastoma multiforme (CENTRIC)
IMO-2055
•
Start Phase II study in head and neck
* CHMP: Committee – of the European Medicines Agency (EMA) - for Medicinal Products for Human Use
Merck Erbitux Sales €m
187
162
171 177
145 145
134 141
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Page 20

Merck Serono
Pipeline Portfolio as of Februry
Phase I
Aurora kinase inhibitor (AS703569)
Solid tumors and hematological
malignancies
MEK inhibitor (AS703026)
Solid tumors and hematological
malignancies
Sonepcizumab
anti-S1P mAb
Solid tumors
c-Met kinase inhibitor
(EMD 1214063)
Solid tumors
Fibroblast Growth Factor 18
Osteoarthritis
Phase II
Erbitux ® (cetuximab),
anti-EGFR mAB
Breast cancer
Tucotuzumab celmoleukin,
immunocytokine
Small cell lung cancer (SCLC)
Cilengitide, integrin inhibitor
SCCHN
Cilengitide, integrin inhibitor
NSCLC
Adecatumumab,
anti-EpCAM mAb
Colorectal Cancer
Anti-integrin mAb (DI17E6)
Colorectal Cancer
TLR9 immunomodulator
(IMO-2055)
SCCHN
ARX 201, long acting GH
Growth hormone deficiencies
*Sponsored and coordinated by the Fédération Francophone de Cancérologie Digestive (FFCD)
2010
Phase III
Rebif New Formulation in CIS
(REFLEX)
Cladribine tablets in CIS (ORACLE)
Safinamide (MOTION)
Early stage Parkinson’s
Safinamide (SETTLE)
Mid-to-late stage Parkinson’s
Erbitux ® (cetuximab),
anti-EGFR mAb (PETACC-8*)
Adj Colon Cancer
Erbitux ® (cetuximab),
anti-EGFR mAb (EXPAND)
Gastric Cancer
Cilengitide, integrin inhibitor
(CENTRIC)
Glioblastoma
Stimuvax ® , therapeutic cancer vaccine
(START, INSPIRE)
NSCLC
Stimuvax ® , therapeutic cancer
vaccine (STRIDE)
Breast Cancer
Atacicept, anti-Blys/anti-APRIL fusion
protein (APRIL)
Systemic Lupus Erythematosus
in Registration
Rebif New Formulation
Relapsing forms of MS
FDA: Application submitted
Cladribine tablets
Relapsing forms of MS
EMEA: Application submitted
FDA: Preparing re-submission
Tesamorelin
Excess abdominal fat in HIV patients with
lipodystrophy
FDA: Application submitted
� Oncology
� Neurodegenerative Diseases
� Autoimmune & Inflammatory
Diseases
� Endocrinology
Page 21

Merck Serono
Pipeline Catalysts 12 Months Rolling
� Oncology
� Neurodegenerative Diseases
� Autoimmune & Inflammatory
Diseases
� Endocrinology
FDA Action Letter
expected for
Tesamorelin to treat
excess abdominal fat in
HIV patients with
lipdystrophy
Q1 Q2 Q3
2010
PMDA: Pharmaceuticals & Medical Devices Agency „Japan“
Phase III data from Rebif in CIS (REFLEX
study)
CHMP opinion expected
for cladribine tablets in
relapsing MS
PMDA decision: Erbitux in 1st line mCRC
Q4
Page 22

Consumer Health Care
Key Financials Q4 2009
€ million Q4 2009 Q4 2008 Δ in %
Total revenues 132.4 113.0 17
Marketing & selling -60.6 -50.0 21
Research & development -6.7 -6.1 10
Operating result 8.6 11.1 -22
ROS (return on revenues) 6.5% 9.8%
Underlying free cash flow
(before acquisitions and divestments)
19.6 3.3 …
• Organic revenue growth 20.3%,
FX headwind of -3.0%
• Continue to focus on seven
strategic brands – penetration
of key markets. Regional
expansion of strategic brands to
Latin America and Asia
• Higher marketing costs for
Femibion in Germany and
launch in UK; 'healthy
pregnancy' launch in Spain;
push Bion sales in France and
new launch in Canada;
Kidabion products launched in
China
• Operating result down due to
product launch costs and higher
other operating expenses
Page 23

Consumer Health Care
Operational Developments
Sales by Health Theme
Mobility
Women's and
Children's
Health
Everyday
Health
Protection
Cough & Cold
Others
16.5
14.1
17.4
15.8
14.5
-5.5%
+9.5%
26.3
24.5
27.6
+73%
38.9
-4.6%
48.8
€m
Q4 2009
Q4 2008
+25%
Strategic brands showed strong growth
•
•
•
•
•
•
•
Kytta +42% (Mobility): mainly due to strong
marketing in our main market Germany
Femibion +44% (Women’s): strong
underlying growth boosted by launches in
France and UK
Cebion +38% (EHP): strong performance in
Venezuela
Bion3 +22% (EHP): ongoing great
performance in France
Diabion +129% (EHP): boosted by launch
in China
Nasivin -16% (Cough & Cold): economic
downturn in Russia plus generally poor
winter season in Europe
Others: Reflects Belgian acquisition and
Cape June success
Page 24

Chemicals
Overview Q4 2009
Liquid
Crystals
Performance &
Life Science
Chemicals
Liquid Crystals
201 €m
Chemicals
Revenues Q4 2009: 504 €m
Performance & Life Science Chemicals
303 €m
• Focus on innovation in display technologies to sustain market leadership
• Capitalize on excellent reputation in quality and reliability
• Broaden application basis long-term with penetration into new markets
• Focus on specialty chemicals solutions
• Leverage strong expertise in regulated markets with high entry barriers
• Strengthen position in focus regions: India and China
Page 25

Liquid Crystals
Key Financials Q4 2009
€ million Q4 2009 Q4 2008 Δ in %
Total revenues 201.1 167.3 20
Marketing & selling -7.4 -6.9 7.4
Research & development -21.1 -23.3 -10
Operating result 91.1 52.4 74
ROS (return on revenues) 45.3% 31.3%
Underlying free cash flow
(before acquisitions and divestments)
106.7 69.7 53
• Recovering manifested by
revenue performance, despite
4% FX headwind
• Gross margin reflects price
pressure
• Return on sales as guided in
Q3
• Cash flow up in line with
operating result
Page 26

Liquid Crystals
Business Dynamics
Quarterly Business Development 2008 - 2009
250
200
150
100
50
0
234
119
Q1
2008
238
107
Q2
2008
Operating Result Revenues
239
112
Q3
2008
167
52 52
13
Q4
2008
131
Q1
2009
189
Q2
2009
211 201
72
Q3
2009
91
€m
Q4
2009
FY 2009:
• Volume 2009 on previous years
level
•
•
•
Market share down, but still
above 50%
ROS in worst quarter ever still
at 10%
Success story PS-VA
technology
Page 27

Liquid Crystals
Attractive market for LC Displays
Area in (km 2 )
150
100
50
0
13% compound annual growth rate
2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5
Source: DisplaySearch, Long-term demand forecast Q4 2009
Others
Notebook PC
Desktop Monitor
LCD TV
Page 28

Liquid Crystals
Investing into innovations
Displays .
•
Latest development:
PS-VA
• 3D applications
• Flexible displays
• OLED materials
Photovoltaics
•
•
•
•
Structuring and
process chemicals
Materials for organic
thin film cells
Ionic liquids for dye
solar cells
Anti-reflective
coatings
.
Lighting .
• OLED for lighting
• Phospors LED
•
•
Printed Electronics
Organic
electronics
Inorganic
semiconductors
Page 29

Performance & Life Science Chemicals
Key Financials Q4 2009
€ million Q4 2009 Q4 2008 Δ in %
Total revenues 302.6 298.7 1.3
Marketing & selling -80.4 -81.8 -1.7
Research & development -14.1 -16.0 -11.7
Operating result 33.6 35.9 -6.4
ROS (return on revenues) 11.1% 12.0%
Underlying free cash flow
(before acquisitions and divestments)
36.1 16.4 …
• Recovery in Pigments sales
• Free cash flow reflects EBIT
improvement
Page 30

Performance & Life Science Chemicals
Operational Developments Q4 2009
Sales by Region
Europe
Asia
North
America
Latin
America
Rest of
World
11
9
35
36
+19%
50
55
-4.1%
72
82
-9.7%
+14%
€m
124
125
-1.0%
Q4 2009
Q4 2008
• Sales growth driven from Asia
(+14%): mainly Indonesia, China,
and India
• North America development of
-9.7% mainly caused by FX
headwind
• Strengthening of Laboratory
business in India through
acquisition of Bangalore
Genei/India
• Ongoing recovery of pigments
business and further growth
potential through the integration of
Taizhu in China (acquisition in Q3)
Page 31

Appendix
Company Overview
A
B
C
D
E
F
Company Overview
Merck Serono
Consumer Healthcare
Liquid Crystals
Performance & Life Science Chemicals
Financial Results in Detail
Page 33
Page 38
Page 57
Page
59
Page 64
Page 68
Page 32

Merck Group
Long Tradition in Pharma
•
•
•
•
•
•
Oldest pharma
Diversification in pharma
& Chemicals
and chemicals company in the world –
and chemicals to spread risk
~70% family ownership; ~30% public ownership by shares
since 1668
Broad global presence with more than 33,000 employees worldwide
Proven competence in acquisitions und divestitures
Expropriation of the US subsidiary after World War I (→ Merck & Co.)
Page 33

Merck Group
Ownership Structure
General partner with
equity interest
•
•
Merck family
(Approx. 130 partners)
100.0%
E. Merck KG
70.3%
Merck KGaA
Capital share of general partner E. Merck KG: 397.2 €m
Share capital: 168.0 €m
Shareholders
29.7%
Limited liability
shareholders
General partners
without equity
interest =
Executive Board
of KGaA
= 152.8 m share equivalents
= 64.6 m shares
= 70.3%
= 29.7%
Page 34

Merck Group
Strategy Principles
Sustain
Local entrepreneurship
Customer focus and internationalization
Production and marketing of specialties
Orientation on mission statement and corporate values
Change
Modernize structures and processes
Globalize businesses
Create global “Company signature”
Grow
Focus on profitable growth
Take advantage of synergies in the markets
Use innovation power in Pharma and fuel innovations in Chemicals
Selective acquisitions
Page 35

Merck Group
Specialties in Pharmaceuticals & Chemicals
Total Revenues 1) Core Operating Result 1)
Performance & Life
Science Chemicals
Liquid
Crystals
Consumer
Healthcare
Pharmaceuticals Chemicals
Pharmaceuticals Chemicals
16%
9%
FY2009:
6% 7,747 €m 69%
Merck
Serono
Performance & Life
Science Chemicals
7%
Liquid
Crystals
17%
Consumer
Healthcare
FY2009:
1,296 €m 2)
1) Deltas between sum of Pharmaceuticals and Chemicals revenues and operating results, respectively, due to corporate/other segment (2009: -78 €m of operating result)
2) Core operating result is before PPA amortization and before integration/restructuring costs mainly related to Serono acquisition
3%
73%
Merck
Serono 2)
Page 36

Merck Group
Revenue Growth Analysis FY 2009
Nominal Organic Currency
Acquisitions/
Divestments
Merck Serono 6.6% 6.8% -0.0% -0.2%
Consumer Health Care 5.7% 8.6% -4.5% 1.5%
Liquid Crystals -16.6% -16.7% 0.1% 0.0%
Performance & Life Science
Chemicals
-3.8% -4.5% 0.4% 0.3%
Merck Group 2.1% 2.2% -0.2% 0.0%
Page 37

Merck Serono
Innovation in Strategic
Future growth drivers:
2 core areas
Solid
foundation
Oncology
Core Areas
Merck Serono
Autoimmune
&
Inflammatory
Disease
Fertility
Endocrinology
Neurodegenerative
Diseases
Cardiometabolic Care & General Medicines
Page 38

Merck Serono
Focus on Specialist Therapeutic Areas
Merck Serono – Business Focus
Neurodegenerative Diseases
Oncology
Fertility
Endocrinology
Cardiometabolic Care & General Medicines
Focus on breakthrough medical solutions in Specialist Therapeutic Areas
Page 39

Merck Serono
Product Portfolio
37%
1%
5% 12%
14%
FY 2009
Sales by Therapeutic Areas Sales by Key Products
Cardiometabolic Care
& General Medicines
Endocrinology
2009:
€4994m
Fertility
AIID
Oncology
31%
Neurodegenerative
Diseases
Rebif
Erbitux
Gonal-f
Concor
Glucophage
Saizen
191
172
305
290
486
460
413
433
697
565
+5.2%
+11%
+5.8%
-4.6%
+23%
1537
1331
€m
+15%
2009
2008
Page 40

Merck Serono
Neurodegenerative Diseases
Rebif
•
Rebif (interferon beta-1a) is a disease modifying drug used to treat
relapsing forms of MS. Similar to the interferon beta protein produced
by the human body, interferons are thought to help modulate the
body’s immune system and reduce inflammation.
Cladribine Tablets
•
An oral short-course, disease-modifying treatment for MS, Cladribine
is a small molecule that interferes with the behaviour and proliferation
of certain white blood cells, particularly lymphocytes, which are
thought to be involved in the pathological process of MS.
Safinamide
•
•
Merck Serono and its partner Newron are developing Safinamide, a alpha-aminoamide derivative
formulated for oral administration that is currently being developed as an add-on treatment for both,
early and mid-to-late stage patients with PD
Phase III studies are ongoing
–
–
Neurodeg. Dis. Sales €m
368 387 381 402
360
313 320 338
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
MOTION: Safinamide as add-on to dopamine agonist in early-stage Parkinson’s Disease
SETTLE: Safinamide as add-on to levodopa in mid-to-late stage Parkinson’s Disease
Q4 2009
Page 41

Merck Serono
Rebif – A Leader in the MS Market
Leading drug against relapsing Multiple Sclerosis (MS) outside
the US with double digit growth rate in the US
•
•
Approved for the treatment of relapsing MS in 90 countries
worldwide
Favorable benefit-to-risk profile:
–
–
Proven efficacy on three key measures of treatment
effectiveness (MRI, relapse rate, disability progression)
Long term safety supported by 8 years of clinical data and over
a decade of clinical experience
Active life-cycle management initiatives
•
•
Formulation enhancements (Rebif New Formulation)
Innovative injection devices
–
–
RebiSmart:
•
•
First electronic injection device in MS
Designed for ease of use and increased patient adherence to
treatment
Label extension (Rebif in CIS – REFLEX study)
Merck Rebif Sales €m
581
723
875
1,157
1,018
1.537
1,331
1,218
2002
2003
2004
2005
2006
2007
2008
2009
Page 42

Merck Serono
Cladribine – Oral Treatment in MS
•
•
•
•
Orally administered disease-modifying agent could transform the lives of MS patients
Working closely with the FDA to address RTF issues and to prepare the re-submission in the US at
the earliest possible time
Marketing authorization application submitted in Europe in July 2009. EU application accepted and
currently under review, with CHMP opinion expected in 3Q10.
Ongoing studies with Cladribine Tablets:
Extension
Subjects Status
~ 800
~600
~200
Extension study of pivotal 2-year Phase III monotherapy trial in patients
with relapsing MS
Phase III study of two doses of cladribine tablets vs placebo in
preventing conversion to MS in subjects with a first clinical
demyelinating event at high risk of converting to MS
Phase II safety study of cladribine tablets added to interferon therapy in
patients with active MS
Page 43

Merck Serono
Cladribine – Oral Treatment in MS
CLARITY Study: Design
•
•
•
•
2-year Phase III study; 1,326 patients with relapsingremitting
MS (RRMS)
Short course treatment: 1 course = 1-2 tablets (10mg)
for 4 or 5 consecutive days/month depending on patient
weight
Year 1: courses for 2 or 4 consecutive months,
depending on dose regimen (3.5mg/kg or 5.25 mg/kg)
Year 2: courses for 2 consecutive months
CLARITY Study: Results published in NEJM
•
•
•
Primary and secondary endpoints met with high levels of statistical significance
~90% patients in each group completed treatment; low drop-out rate due to adverse events suggests
good tolerability
Overall adverse event rates comparable between treatment groups:
–
–
Differences consistent with mechanism of action
Observed malignancies were isolated cases across different organ systems
Page 44

Merck Serono
Oncology
Erbitux
•
CHMP* adopted negative opinion for treatment of lung cancer (Nov.
09) after Merck had requested re-examination of first negative
CHMP Opinion received in July 09
Stimuvax
•
Expanded Phase III clinical trial program
–
–
–
Cilengitide
•
START (NSCLC) ongoing
STRIDE (breast cancer – initiated June 2009)
INSPIRE (NSCLC – Asian regions – initiated December 2009)
Ongoing Phase III trial in Glioblastoma multiforme (CENTRIC)
IMO-2055
•
Start Phase II study in head and neck
*CHMP: Committee - of the European Medicines Agency (EMA) - for Medicinal Products for Human
Oncology Sales €m
163 173 179 189
148 147
136 144
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Page 45

Merck Serono
Erbitux ® – On the growth path
•
•
•
•
Indication Approved
3rd /2nd line mCRC in EU Jun 04
Locally advanced SCCHN in EU Apr 06
1 st
line mCRC in EU July 08
3rd /2nd line mCRC in Japan July 08
Recurrent/metastatic SCCHN in EU Nov 08
Metastatic colorectal cancer (mCRC) in EU: KRAS screening & reimbursement processes
established
National Institute for Health and Clinical Excellence (NICE/UK): positive recommendation to use
Erbitux as 1st line treatment in mCRC (patients with KRAS wild-type tumors and unresectable
metastases limited to the liver) ► Erbitux is the only targeted therapy endorsed by NICE for the 1stline
treatment of the disease
Committee for Medicinal Products for Human Use (CHMP) adopted negative opinion for treatment of
lung cancer (Nov. 2009) after Merck had requested re-examination of first negative CHMP Opinion
received in July 09
Erbitux now approved for mCRC in 78 countries, for SCCHN in 73 countries
Merck Erbitux Sales €m
77
218
337
470
565
697
2004 2005 2006 2007 2008 2009
Page 46

Merck Serono
Erbitux ® – Achievements
•
•
•
•
Congress data on CRC
–
–
Final CRYSTAL results: significant overall survival benefit
of 3.5 months (ECCO/ESMO) in 1st line mCRC* patients
with KRAS wild-type status in combination with FOLFIRI
Erbitux treatment effect does not vary by BRAF mutation
status in CRYSTAL (ASCO GI)
Erbitux recommended for 1st line NSCLC in guidelines of
–
–
–
–
–
ASCO
NCCN (National Comprehensive Cancer Network)
NCCN Asia
AIOT (Italian Association of Thoracic Oncology)
SAOC (South African Oncology Consortium)
ESMO 2009 guidelines for head and neck cancer:
–
–
Erbitux with platinum based chemotherapy rated exclusively with highest grade of evidence (grade I)
and highest grade of recommendation (grade A) in recurrent/ metastatic setting
Erbitux in combination with radiotherapy in locally advanced setting on par with concomitant
chemoradiation, also rated with grade IA
Erbitux recognized by ASCO as major advance: first SCCHN 1st-line treatment to improve survival in 30 yrs
*mCRC: metastatic Colorectal Cancer SCCHN: Squamous Cell Carcinoma of the Head&Neck
Page 47

Merck Serono
Metastatic Colorectal
KRAS status
distribution
in mCRC
KRAS mt
35%
KRAS wt
65%
Cancer
1st-line
96,491 pts*
KRAS wt
62,719 pts*
Market
2nd-line
18,535 pts*
KRAS wt
12,048 pts*
3rd-line
10,263 pts*
KRAS wt
6,671 pts*
28 weeks 20 weeks 16 weeks
Treatment Duration
* Data for Europe Big Five, Source: OncFoundation v5 Nov 2009 projections for 2009
Page 48

Merck Serono
Benefit of personalized therapy
Response rate (%)
70
60
50
40
30
20
10
0
Biomarker selection with
KRAS:
Identified up to 65 % p’ts
(KRAS wt) treated with
personalized therapy
CRYSTAL OPUS
p

Merck Serono
Fertility
Global market leader in fertility treatments, offering:
•
•
•
•
•
•
Broadest range of complementary products for infertility
Recombinant forms for all three gonadotropins needed in a
treatment cycle
Available in 100 countries
Share gains in US market, strong growth in China, Brazil
Next generation Gonal-f pen launched in over 30 countries, including key EU and US
Slowing market growth in volume & reduced average selling price
Fertility Sales
€m
164 165
140 147 140
148 133 144
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Page 50

Merck Serono
Endocrinology
Saizen
well positioned to compete given breadth of indications and device
differentiation strategy
• easypod ® electronic injection device launched Q1/07, available in
•
almost 40 countries by end 2009
Family of delivery devices and customer services driving growth
Serostim
approved for HIV-associated wasting in US
• Access education for patients & provider to strengthen understanding of
Medicare Part D simplified reimbursement in some states
• Designated as an orphan drug by FDA
Kuvan
first treatment available in Europe for the treatment of hyperphenylalaninemia
(HPA) in phenylketonuria or BH4 deficient patients
• Soluble tablets, administered once daily
• Orphan drug status in Europe
• Uncontrolled HPA can cause serious brain damages in infants and
children, and transient to lasting neurocognitive impairment in adult
patients
Endocrinology Sales €m
52
56 58 63
cool.click
needle-free device
61 65 66 70
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
easypod
one.click
autoinjector
Page 51

Merck Serono
Cardiometabolic
Concor / Bisoprolol Products
•
•
Concor ®
Care
family: among the leading beta-blockers in many countries
Strong sales growth in emerging markets partly compensating for
generic competition of our heart failure drug in Europe
Glucophage / Metformin Products
•
•
Robust sales development within the last years despite generic
competition due to successful life-cycle management, e.g. launch
of Glucophage XR and Glucovance in 2009
Global guideline of ADA/ EASD recommend Metformin as first line
therapy for type-II diabetes together with diet and exercise
Euthyrox & other thyroid products
•
•
In Europe, Latin America and China, we are market leader
CM Care Sales €m
438 473 462 470
434
456 460
486
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Epidemiological data suggest, that only 20% of people suffering from hypothyroidism are treated –
high treatment need
Page 52

Merck Serono
Tesamorelin
Background
•
•
Tesamorelin is a growth hormone-releasing factor analogue with therapeutic potential in a variety of
anabolic and lipolytic indications
Merck has exclusive commercialization rights to Tesamorelin in the US in this indication per the
collaboration and licensing agreement with Theratechnologies entered in October 2008
Status
•
•
•
Partner Theratechnologies submitted Tesamorelin NDA to FDA on May 29, 2009 for the treatment of
excess abdominal fat in HIV patients with lipodystrophy
FDA filed the NDA on August 12, 2009 and PDUFA date for Tesamorelin is March 29, 2010
On January 25, 2010 Theratechnologies announced that due to an administrative delay at FDA not
related to the NDA, a meeting of the Endocrinologic & Metabolic Drugs advisory committee will be
rescheduled
NDA: New drug application;
PDUFA:
Prescription Drug User Fee Act
Page 53

Merck Serono
Stimuvax ® – BLP25 Cancer Vaccine
Background:
•
•
Stimulates specifically the body‘s immune system to fight
cancer
Targets specifically the tumor antigen MUC1:
–
–
Widely distributed on the majority of epithelial cancers
and hematological malignancies
Expression and glycosylation different on normal vs.
tumor epithelial cells
Ongoing Phase III clinical trials:
•
•
•
START (NSCLC): started in Feb 2007. The study will recruit
approximately 1,300 patients in more than 30 countries in around
270 sites
INSPIRE (NSCLC): started in Dec 2009. The study will recruit
approximately 420 patients in Asia (China, Hong Kong, Singapore,
South Korea, Taiwan)
STRIDE (Breast Cancer): started in Jun 2009. The study will recruit
more than 900 patients in over 30 countries in about 180 sites
Page 54

Merck Serono
Cilengitide
Background:
•
•
First in a new class of targeted anti-cancer therapies –
known as integrin inhibitors
The highly selective integrin inhibitor is thought to
–
–
inhibit the formation of new blood vessels to the tumor
directly target the tumor through blocking of survival
and growth factors
Ongoing Phase III clinical trial:
•
CENTRIC: (Glioblastoma multiforme) started in Nov 2008.
The study will recruit approximately 500 patients in about 170 centers worldwide
Ongoing Phase II studies:
•
•
•
•
CERTO: in non-small cell lung cancer
ADVANTAGE: in head and neck cancer
CORE: Glioblastoma multiforme
The US National Cancer Institute(NCI) is also sponsoring a number of clinical trials for the
development of cilengitide in other indications.
Page 55

Merck Serono
Atacicept
Novel Approach to Treat B-Cell Disorders
Background:
• A soluble fusion protein between the extracellular domain
of the naturally occuring TACI receptor found on B-cells &
the Fc portion of human IgG
• Binds and neutralizes both BLyS and APRIL, TNF family
cytokines implicated in B-cell differentiation and survival
as well as antibody production
Potential treatment for autoimmune diseases
Atacicept (TACI-Ig)
TACI
BLyS/APRIL
Binding
Domain
Human IgG Fc
to extend t 1/2
Update on Phase II / III trials:
• Phase III:
– APRIL (SLE): Phase III clinical trial in Systemic Lupus Erythematosus
• Initiated in Jun 2008 and recruiting over 500 patients
• Study will evaluate efficacy and safety compared to placebo in preventing SLE flares
• Phase II:
– Phase II trials in RA terminated early 2010: Decision not to move to Phase III due to insufficient
clinical efficacy in order to develop a competitive product profile
B-
Cell
TACI: Transmembrane Activator and Calcium modulator cyclophilin ligand Interactor
Page 56

Consumer Health Care
Focus on Defined Health Themes
Consumer Health Care – Business Characteristics
Mobility
Everyday Health Protection
Cough & Cold
Women’s & Children’s Health
Specialized in innovative products of defined Health Themes
Page 57

Consumer Health Care
Strengthening Strategy
Marketing Strategy:
Continue to focus on Strategic Brands/Health Themes.
Build 7 strong, sustainable international strategic
–
–
–
–
–
–
–
Bion/Multibionta
Flexagil (Seven Seas, Kytta)
Femibion
Nasivin
Kidabion
Cebion
Diabion
2)
brands 1)
Regional expansion of the Strategic Brands (Latam/Asia)
Brand expansion:
•
•
•
Stretch product offer into relevant consumer benefit platforms (Innovation)
Build brand awareness, usage and loyalty (Advertising)
Ensure excellent in-market execution (POS/Promotion)
1) Cebion, Diabion, Kidabion: regional Strategic Brands
2) Includes strategic initiatives. Nasivin could attain power brand status under the assumption of a successful sinusitis in-licensing project
Page 58

Liquid Crystals
Specialty Chemical Solutions for
Liquid Crystals – Market Characteristics
•
•
•
•
•
Specialty, tailor-made chemicals solutions
Only one application: displays
Highly consolidated competitive landscape with
only three suppliers of liquid crystals
Merck is leading the LC market since the beginning
Display market dominated by five big Asian display
customers in Japan, Korea and Taiwan
Selected Applications
LCD TV‘s
Monitors
Flat
Displays
Quarterly Business Development
250
200
150
100
50
0
234
119
Q1
2008
238
107
Q2
2008
Operating Result Revenues
239
112
Q3
2008
167
52
Q4
2008
Advertising space
131
13
Q1
2009
189
52
Q2
2009
211
72
Q3
2009
in €m
201
91
Q4
2009
Page 59

Liquid Crystals
A Highly Consolidated Industry
LC
Suppliers
LCD
Panel
Makers
LCD
Set
Makers
Page 60

Liquid Crystals
TV Market by Unit Market Share
Units Market share
100%
80%
60%
40%
20%
0%
2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3
LCD TV shipments surpassed CRT in 2008
Source: DisplaySearch, Quarterly Global TV Shipment Report Q4/2009
Other
CRT
Plasma
LCD
Page 61

Liquid Crystals
Innovation in advanced LC materials
Faster Response Time
Better Contrast
Improved Black State
Liquid
Crystals
Faster Transmission
Higher Reliability
Better Viewing Angle
Page 62

Liquid Crystals
Innovation PS-VA & novel
Technical superiority of PS-VA
PS-VA technology cuts energy consumption and
enhances picture quality, delivers faster response
times, higher contrast ratio and higher transmission
Fit for mass production
Innovative materials and a specific mixture process
have paved the way to mass production
Solution driven
Relentless innovation –
budget
funded from a generous R&D
Applied research
Synchronization of basic and application research
Market centric
Ongoing interdisciplinary development of creative
solutions to satisfy future market needs
LC Materials
The "innolution" of LC materials
for TV applications
Innovation stimulates the development of future breakthrough products
Page 63

Performance & Life Science Chemicals
Serving across many attractive industries
Academia
Chemical
Industry
Laboratory Business
Food &
Beverage
Pharma
Biopharma
Life Science Solutions
Cosmetics
Performance & Life Science Chemicals
Coatings
Pigments
• Worldwide network of subsidiaries ensures customer proximity
• Strong compentence in regulatory affairs to address regulated markets
• Harmonized business processes in production, logistics and divisional services
Printing,
Plastics &
Security
Page 64

Performance & Life Science Chemicals
Overview: Laboratory Business
•
•
•
•
Academia
Chemical Industry
& Water Testing
Laboratory Business
Access to worldwide network of own subsidiaries and exclusive dealers ensuring customer proximity
Serving approximately 1 million customers with more than 30,000 products
Analytical competence and know-how for a broad range of applications
Validated products and strong competence in regulatory affairs
Inorganics
& Solutions
Solvents Chromatography Biosciences Microbiology,
Hygiene &
Microscopy
Food &
Beverage Pharma &
Biopharma
Food &
Environmental
Tests
Lab Supply
Page 65

Performance & Life Science Chemicals
Overview: Life Science Solutions
Pharma Biopharma Cosmetics
Food
Life Science Solutions
Life Science Solutions serves the pharmaceutical, biopharmaceutical, cosmetics and food industry.
The product portfolio covers:
• Products and services for the entire value chain of biopharmaceutical production
• Active ingredients used in oral or topical applications for pharma, cosmetics or food supplements
• Biological crop-enhancing technologies in CropBioscience
• Ionic liquids, a new technology platform used in a very broad technical area (i.e. catalysis)
Page 66

Performance & Life Science Chemicals
Overview: Pigments Business
Coatings
Coatings:
•
•
Cosmetics
Pigments Business
Food & Pharma
Printing, Plastics
& Security
Specialty effect pigments for automotive coating, powder coating, coil coating & decorative coating
Functional pigments for UV protection, antiscratch and conductivity
Cosmetics:
•
•
Specialty effect pigments for color cosmetics, skinand personal care applications
Functional pigments for cosmetic fillers
Food & Pharma:
•
Specialty effect pigments for tablets, capsules, sweets, ice cream, beverages and coating systems
Printing, Plastics & Security:
•
•
Special effect pigments for packaging, paper coating, plastic masterbatch, ceramics & printing inks
Functional pigments for laser marking, brand protection and high security solutions
Page 67

Appendix
Reconciliation to Core Figures
Core operating result (€ million) 2009 2008 Δ in %
Operating result 648.9 1,131.4 -42.6
Amortization of intangibles 1 647.0 564.1 14.7
Operating result generics - 0.4 …
Restructuring/special integration costs Serono 0.0 39.2 …
Core operating result 1,295.9 1,735.1 -25.3
Core earnings per share (€ million) 2009 2008 Δ in %
Net income (excl. generics in 2008) 376.7 379.5 -0.2
Amortization of intangibles 1 647.0 564.1 14.7
Restructuring/special integration costs Serono 0.0 39.2 …
Exceptionals 28.0 400.0 -93.0
Minority interest -10.4 -12.0 -13.3
./. Tax adjustments -76.3 -125.9 -39.5
Core net income 965.0 1,244.9 -22.5
Core EPS 2 4.44 5.73 -22.5
1 Only Merck Serono assets are considered.
2 According to IAS 33 EPS is calculated on the weighted average number of shares (2009: 217.4 m; 2008: 217.4m).
Page 68

Appendix
Income Statement
€ million 2009 2008 Δ in %
Sales 7,377.7 7,201.6 2.4
Royalty/commission income 369.2 388.0 -4.8
SG&A -3,069.9 -2,744.5 11.9
R&D -1,344.6 -1,234.4 8.9
Amortization of intangibles -657.8 -573.4 14.7
Operating result 648.9 1,131.4 -42.6
Exceptionals -28.0 -400.0 -93.0
EBIT 620.9 731.4 -15.1
Financial result -134.5 -156.5 -14.1
Profit before tax 486.4 574.9 -15.4
Income tax -109.7 -195.9 -44.0
Profit after tax 376.7 379.1 -0.6
Minorities -10.4 -12.0 -13.5
Net income 366.3 367.1 -0.2
Earnings per share (€) 1 1.68 1.69 -0.6
1 According to IAS 33 EPS is calculated on the weighted average number of shares (2009: 217.4m; 2008: 217.4m).
Page 69

Appendix
Costs
€ million 2009 2008 Δ in %
Sales 7,377.7 7,201.6 2.4
Royalty income 369.2 388.0 -4.8
Total revenues 7,747.0 7,589.6 2.1
Cost of sales -2,029.3 -1906.0 6.5
Gross margin 5,717.7 5,683.6 0.6
Marketing & selling -2,272.3 -2,128.2 6.8
Administration -424.9 -446.2 -4.8
Other expenses/income -372.7 -170.1 ….
R & D -1,344.6 -1.234.4 8.9
Amortization of intangible assets -657.8 -573.4 14.7
Investment result 3.4 0.1 …
Operating result 648.9 1,131.4 -42.6
Page 70

Investor Relations
Upcoming Events
Apr 9, 2010
Apr 28, 2010
Jul 29, 2010
Oct 26, 2010
DATE EVENT
Annual General Meeting, Frankfurt
Publication of business results for Q1 2010
Conference Call
Publication of business results for Q2 2010
Conference Call
Publication of business results for Q3 2010
Conference Call
More details can be found on: http://www.merck.de/en/investors/financial_calender/financial_calendar.html
Page 71

Investor Relations
Your Contact
Dr. Markus Launer
Head of Investor Relations
Dr. Thomas Kornek
+49 6151 72-7434
Claudia Nickolaus
+49 6151 72-2584
Caroline Stewart
+49 6151 72-5355
Alessandra Heinz
Assistant Investor Relations
+49 6151 72-3744
Merck KGaA
Investor Relations
Frankfurter Str. 250
64293 Darmstadt
Germany
Fax: +49 6151 72-913321
investor.relations@merck.de
www.investors.merck.de
Page 72