Corporate Magazine 2012 - Boehringer Ingelheim

oped positively. The most important product in this area,metacam® for small animals, maintained its strong position,despite competition from generic drugs, attainingrevenues of EUR 72 million with sales growth of 5.9%.Overall, we strengthened and extended our position asone of the top companies in the animal health sector lastyear. With a market share of 6.0%, Boehringer Ingelheimis ranked 6th among companies in this market segment,according to the provisional figures of the market researchers.Net sales (in millions of EUR) 2012 2011 Changeingelvac circoflex® 279 257 8.6%metacam® 99 96 3.1%ingelvac® prrs 68 57 19.3%vetmedin® 49 46 6.5%This is also borne out by an assessment of the sales developmentin the regions. The encouraging growth of justunder 21% in the AAA region underlines the innovativestrength and future potential of the Animal Health business.This region has the highest growth rate, and generatedsales of EUR 215 million in the last financial year,with notable contributions from Japan and the emergingmarket of China. The Americas region increased itsrevenues by 7.1% to EUR 511 million, mainly as a resultof 10% sales growth in the USA. While sales in Germanystagnated at the high previous year’s level of EUR 91 million,revenues in Europe as a whole were up 4.4% toEUR 329 million.The 2012 financial year saw the opening of the Europeanresearch centre for animal vaccines in Hanover, BoehringerIngelheim’s fourth German site. The Boehringer IngelheimVeterinary Research Centre (BIVRC) develops innovativevaccines. Another major step in the long-termexpansion of our Animal Health segment was the constructionof our first Asian research and developmentcentre for veterinary medicine at the Zhangjiang High-Tech Park in Shanghai, China.Expenditure and incomeIn the 2012 financial year, Boehringer Ingelheim’s operatingexpenses rose to EUR 14,367 million, a change of+ 17.2% year-on-year. At EUR 1,878 million, materialexpenses were up 11.9% on the previous year (EUR1,679 million). As a result of the increase in sales, thematerial costs as a share of total sales remained unchangedat 12.8%. Personnel costs amounted to EUR 4,024 million(+ 9.8%). Consequently, the personnel expensesshare was 27.4%, down slightly on the previous year.Amortisation rose by EUR 260 million (+ 40.8%) toEUR 897 million. Other operating expenses increased by20.6% year-on-year to EUR 7,568 million. Among otherthings, this cost block includes commission and licencepayments, which are dependent on sales. As expected, atEUR 1,853 million, operating income was down on theprevious year (EUR 2,272 million), also due to the situationat our US subsidiary Ben Venue Laboratories, Inc. aswell as initiated cost-reduction measures, as was the returnon net sales of 12.6% (2011: 17.3%).In the reporting period, the financial result totalledEUR – 117 million, up EUR 81 million on the previousyear. This was largely attributable to higher income fromplan assets for pensions and similar obligations as a resultof positive market developments.Income before taxes developed in line with the resultfrom operating activities, falling to EUR 1,739 million.Tax expenses amounted to EUR 502 million. Here, it mustbe taken into consideration that, under the provisions ofGerman commercial law, shareholders’ personal taxesarising from group business activities may not be recognisedin tax expenses. Instead, these taxes are presentedas part of withdrawals from group equity. Taking this extraordinaryeffect into account, the actual tax ratio ismarkedly higher than the figure shown in the profit andloss statement.In the 2012 financial year, the net income of the BoehringerIngelheim Group totalled EUR 1,237 million,34Boehringer Ingelheim annual report 2012