Corporate Magazine 2012 - Boehringer Ingelheim

usiness year 2012group management reportNet sales by region (in millions of EUR)Europe 4,194 4,0372012 2011Asia,Australasia,AfricaAmericas 6,905 6,087(AAA) 3,592 3,0472012 20112012 2011started the 2012 financial year at 1.29 USD/EUR andranged between 1.21 USD/EUR and 1.35 USD/EUR asthe year progressed. After reaching its yearly high againstthe US dollar in the first quarter, the euro entered severalmonths of decline, ending in July at an exchange rate of1.21 USD/EUR. By the end of the year, the euro had recoveredagainst the US dollar. Contributory factors herewere the approval of the European Stability Mechanism(ESM) by the German Federal Constitutional Court, theannouncement of a new scheme involving the purchaseof government bonds by the European Central Bank (ECB)and an agreement with Greece regarding further aidpayments. The year ended with an exchange rate of 1.32USD/EUR, meaning that the euro had gained 2% comparedwith 31 December 2011.velopments in the eurozone also had an increasing impacton the German economy. Economic output rose byjust 0.7% in 2012. As a result of export success in thirdcountries, a key growth factor, Germany’s performancecontrasted with the weak economic development in theeurozone. The German labour market continued to developpositively. Another new high of just under 42 millionin work was reached in 2012. The average numberof unemployed during the year fell to 2.3 million. TheIfo Institute expects a 0.7% increase in real gross domesticproduct in the current financial year, but points to ahigh level of forecasting uncertainty due to the dependenceon overall economic developments in the eurozone.In December 2012, the annual inflation rate in Germanystood at 2.0%, thus matching the European Central Bank’starget. Rising food prices were the main reason for theincrease in consumer prices, while the upward trend inenergy prices slowed down slightly. In the eurozone, theannual inflation rate stood at 2.2% in December. Increasedexcise duty in some EU countries, such as Spain and theNetherlands, had a significant impact here.In addition to the euro, the other key currencies forBoehringer Ingelheim are the US dollar (USD) and theJapanese yen (JPY). In relation to the US dollar, the euroAnother key currency for Boehringer Ingelheim, theJapanese yen (JPY), fluctuated significantly in the 2012financial year. The exchange rate of the euro against theJapanese yen varied between 94 JPY/EUR and 114 JPY/EUR, which equates to a fluctuation range of more than20%. After the euro initially gained against the Japaneseyen, the European currency fell to its yearly low of 94 JPY/EUR in July 2012 due to the European debt crisis. Theeuro then underwent a continuous recovery against theJapanese yen up to the end of 2012, reaching a 17-monthhigh of 114 JPY/EUR on 27 December. This developmentis largely attributable to easing of policy by the JapaneseCentral Bank (BOJ), which combated deflation with extensivebond purchases and key interest rates of temporarily0%.The growth of the global pharmaceutical market deceleratedin 2012. The year on year growth of around 1.6%was significantly lower than in 2011 (4.6%). Health policymeasures and price regulations, mainly in establishedindustrialised nations, put pressure on the pharma business.Growth in the worldwide pharmaceutical marketwas largely driven by high growth rates in emergingmarkets. For 2012, market researchers are anticipating astagnation or merely a small growth for the global pharmaceuticalmarket.Business and operating environment 21