Merck & Company, Inc. · NYSE:MRK
Merck & — Investor Day (2019)
9 slides from Merck &'s investor day presentation, 2019
Slide 1: Welcome & Introductions agenda
Welcome & Introductions Ken Frazier, Chairman and Chief Executive Officer Financial & Value Creation Overview Rob Davis, Chief Financial Officer and Head of Global Services Commercial Growth Drivers: KEYTRUDA & Beyond Frank Clyburn, Chief Commercial Officer Animal Health Innovation Rick DeLuca, Pres
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT OF MERCK & Co., Inc., Kenilworth, N.J., USA These presentations from Merck & Co., Inc., Kenilworth, N.J., USA (the “company”) include “forward- looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Slide 3: Well Positioned to Deliver Strong Shareholder Returns
WELL POSITIONED TO DELIVER STRONG SHAREHOLDER RETURNS Sustained Meaningful Balanced and long-term operating margin disciplined capital revenue growth expansion allocation Rob Davis Investing in the business to innovate for patients globally 9
Slide 4: Growing Revenue Driven by Demand for Innovation in the Face of Pricing Headwinds
GROWING REVENUE DRIVEN BY DEMAND FOR INNOVATION IN THE FACE OF PRICING HEADWINDS HOSPITAL / ANIMAL ONCOLOGY VACCINES SPECIALTY1 HEALTH Leading oncology Durable growth Broad portfolio Global leader portfolio with with significant delivering delivering significant growth competitive demand-driven abov
Slide 5: Fortifying Our Future Ahead of the Changing Landscape
FORTIFYING OUR FUTURE AHEAD OF THE CHANGING LANDSCAPE Becoming a leaner, more efficient, science-driven company to accelerate growth • Focusing organization and resources on greatest opportunities for growth • Evolving operating model and culture to be more agile and efficient • Building optionality
Slide 6: Expect Meaningful Operating Margin Expansion & Increased ROIC
EXPECT MEANINGFUL OPERATING MARGIN EXPANSION & INCREASED ROIC 30% Non-GAAP SG&A as % of sales 40% Non-GAAP Operating margin expansion (%) 2014 2015 2016 2017 2018 2021 2022 2023 2014 2015 2016 2017 2018 2021 2022 2023 Non-GAAP R&D as % of sales Return on Invested Capital (%)1 Rob Davis 20% 14% 12% 1
Slide 7: Value-Creating Capital Allocation Strategy
VALUE-CREATING CAPITAL ALLOCATION STRATEGY Commitments Capital allocation priorities R&D Investments: Continued investments in internal over the next 5 years innovation CapEx: ~$16 billion of capital projects through 2022 focused on manufacturing capacity for our growth businesses, R&D discovery bui
Slide 8: Strategic Business Development Fueling Innovation
STRATEGIC BUSINESS DEVELOPMENT FUELING INNOVATION Bolt-on acquisitions Strategic collaborations and licensing • Developing portfolio through value-creating • Meaningful partnerships across all stages of acquisitions development • Investments in innovative mechanisms and • Working with a broad range
Slide 9: Positioned to Drive Sustainable Growth and Shareholder Value
POSITIONED TO DRIVE SUSTAINABLE GROWTH AND SHAREHOLDER VALUE Sustained long-term revenue growth including 2023 – the year of greatest impact of JANUVIA LOE Meaningful operating margin expansion through strong revenue growth driving favorable mix and further leveraged by expense productivity, thought