Corporate Magazine 2012 - Boehringer Ingelheim

usiness year 2012group management reportnet sales of EUR 3,592 million, this increasingly significantregion accounts for around 24% of total sales. TheEurope region posted a slight increase in sales (+3.9%) toEUR 4,194 million. Around 29% of group sales are thusgenerated in this region.Net sales by region(in millions of EUR) 2012 2011 ChangeAmericas 6,905 6,087 13.4%Europe 4,194 4,037 3.9%Asia, Australasia, Africa (AAA) 3,592 3,047 17.9%The sales of our Human Pharmaceuticals business totalledEUR 13,080 million in the last financial year, apleasing increase of around 12% (7.7% after adjustmentfor exchange rate effects). With an 89% share of totalsales, Human Pharmaceuticals is Boehringer Ingelheim’slargest business. Within this business, the PrescriptionMedicines division generated sales of EUR 11,405 million,an increase of 13.0% (7.1% after adjustment for exchangerate effects). The Consumer Health Care divisionachieved further growth, particularly in the emergingmarkets, generating global sales of EUR 1,505 million,up 7.8% year-on-year (4.7% after adjustment for exchangerate effects). The Biopharmaceuticals division generatedannual sales of EUR 549 million, an increase of 5.8%.Our products in the Animal Health division also performedpositively, with total sales of EUR 1,062 millionand a growth rate of 8.8% (3.8% after adjustment for exchangerate effects), led by the product with the strongestsales, ingelvac circoflex®.Net sales by businesses(in millions of EUR) 2012 2011 ChangePrescription Medicines 11,405 10,096 13.0%Consumer Health Care 1,505 1,396 7.8%Pharma Chemicals andPharmaceutical Production 162 178 — 9.0%Biopharmaceuticals 549 519 5.8%Animal Health 1,062 976 8.8%Overall, we are satisfied with the development of our salesin 2012. The positive development of our establishedproducts and the promising product innovations serve toaffirm our actions as a company. At EUR 1,853 million,Boehringer Ingelheim’s operating income correspondedto a return on sales of 12.6%.Key figures (in millions of EUR) 2012 2011 ChangeNet sales 14,691 13,171 11.5%Operating income 1,853 2,272 — 18.4%Return on net sales 12.6% 17.3%Research and development (R&D)In line with Boehringer Ingelheim’s corporate missionstatement, our primary objective is to develop innovativemedicines and treatments for diseases that cannot yet betreated in a satisfactory manner. We are constantly strivingto make an important contribution in areas wherethe need for treatment is high and to attain a leading positionin the major indication areas. In order to achievethis goal, we ensure that we are always up-to-date withstrategically important technologies and systematicallyresearch new key technological approaches. In addition,we believe in using the expertise of academic groups,public research facilities and biotech companies, andhave set up a global network.In the 2012 financial year, we employed an average of7,492 staff at our R&D sites. A total of around EUR2.8 billion was invested in the research and developmentof new drugs. This equates to 19.0% of group sales andthus reaches the level of research and development activitiesof the previous year.Boehringer Ingelheim’s successful research and developmentactivities and our innovative strength have alwaysprovided the basis and foundation for our positive economicdevelopment in previous years. In-house researchand development will remain a top priority in the future.One example of the rigorous implementation of ourstrategy is our investment of around EUR 50 million inbuilding a pilot facility for the production of newly developedpharmaceutical active ingredients in Biberach,Germany. Construction of the new technical centre willensure provision of the necessary amounts of new activeBusiness and operating environment23