Merck Kgaa · XETR:MRK
Merck Kgaa — Q2 2021 Earnings Presentation
21 slides from Merck Kgaa's earnings presentation, Aug 5, 2021
Slide 1: Strong Quarter with Double-digit Growth Driven By BIG3
Strong Quarter with Double-digit Growth Driven By BIG3 Q2 2021 results Presentation for the media Belén Garijo, CEO Marcus Kuhnert, CFO August 5, 2021
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements and financial indicators This communication may include “forward-looking statements.” Statements that include words such as “anticipate,” “expect,” “should,” “would,” “intend,” “plan,” “project,” “seek,” “believe,” “will,” and other wor
Slide 3: Agenda
Agenda Executive summary Financial overview Guidance 3 Merck Q2 2021 Results Presentation | August 5, 2021
Slide 4: Executive summary
Executive summary 01
Slide 5: Highlights: Strong group performance with contribution of all businesses
Highlights: Strong group performance with contribution of all businesses Operations Financials Healthcare: 88% organic growth in Fertility; Oncology up nearly 50% with Bavencio® nearly tripling in size, Q2 organic sales: +23.0% Mavenclad® more than doubling & resuming sequential growth; dynamic mark
Slide 6: BIG3 primary driver of ~€950 m organic growth in Q2
BIG3 primary driver of ~ €950 m organic growth in Q2, further supported by recovery in areas impacted by COVID-19 in Q2 2020 ~500 Growth drivers by Business Process Solutions: ~350 +34% organic growth delivering additional ~€300 m Bioprocessing primary driver amid strong underlying business and
Slide 7: Strong Life Science demand and robust Healthcare recovery drive 23% sales and 52% EBITDA pre organic growth
Strong Life Science demand and robust Healthcare recovery drive 23% sales and 52% EBITDA pre organic growth Q2 YoY Net Sales Q2 YoY EBITDA pre Organic Currency Portfolio Total 52.0% €1,576 m Healthcare 23.6% -4.3% 0.0% 19.2% -5.2% -0.1% €1,074 m Life Science 28.2% -5.0% 0.0% 23.2% Electronics 10.3%
Slide 8: Life Science demand and Healthcare recovery drive particularly strong growth in North America and Europe
Life Science demand and Healthcare recovery drive particularly strong growth in North America and Europe Regional breakdown of net sales [€m] Regional organic development Europe +26.4% APAC: Strong growth across all sectors org. 29% particularly in Process Solutions, Fertility and Semiconductor So
Slide 9: Financial overview
Financial overview 02
Slide 10: Q2 2021: Overview
Q2 2021: Overview Key figures Comments [€m] Q2 2020 Q2 2021 Δ Net sales 4,119 4,870 18.2% EBITDA pre & margin increase, driven by operating leverage in Life Science and EBITDA pre 1,074 1,576 46.7% Healthcare vs. LY COVID-19 burden Margin (in % of net sales) 26.1% 32.4% 6.3pp EPS pre increase dr
Slide 11: Q2 2021: Reported figures
Q2 2021: Reported figures Reported results Comments EBIT more than doubles, driven by [€m] Q2 2020 Q2 2021 Δ strong performance across all sectors EBIT 491 1,049 113.6% vs. Q2 2020 COVID-19 burden Financial result -102 -95 -7.3% Improved financial result largely driven by lower interest expense
Slide 12: Healthcare Q2: Strong Fertility recovery & Bavencio performance
® Healthcare Q2: Strong Fertility recovery & Bavencio performance; ® Mavenclad returns to sequential growth as dynamic market picks up Healthcare P&L Net sales bridge [€m] IFRS Pre 23.6% €1,788 m €1,499 m Q2 2020 Q2 2021 Q2 2020 Q2 2021 -4.3% 0.0% Net sales 1,499 1,788 1,499 1,788 * M&S -409 -391 -4
Slide 13: Life Science Q2: Strong core business and COVID-19 demand fuel record growth
Life Science Q2: Strong core business and COVID-19 demand fuel record growth, mainly driven by Process and Research Solutions Life Science P&L Net sales bridge [€m] IFRS Pre 28.2% 0.0% €2,225 m €1,806 m Q2 2020 Q2 2021 Q2 2020 Q2 2021 -5.0% Net sales 1,806 2,225 1,806 2,225 M&S * -488 -505 -488 -505
Slide 14: Electronics Q2: Strong performance in Semi, recovery in Surface
Electronics Q2: Strong performance in Semi, recovery in Surface, and stabilizing Display Solutions drive double-digit organic sales growth Electronics P&L Net sales bridge [€m] IFRS Pre €814 m 10.3% 0.0% €857 m Q2 2020 Q2 2021 Q2 2020 Q2 2021 -5.0% Net sales 814 857 814 857 M&S * -134 -137 -131 -136
Slide 15: Balance sheet
Balance sheet Assets [€bn] Liabilities [€bn] 41.8 43.1 43.1 41.8 Cash & cash equivalents 1.4 1.8 3.2 3.7 Receivables 3.3 3.6 Inventories 19.4 17.0 Net equity Intangible assets 23.6 24.0 12.0 12.1 Financial debt 2.4 Payables/refund liabilities 2.9 Property, plant 4.0 Provisions for employee benefits
Slide 16: Cash flow statement
Cash flow statement Q2 2021 – Cash flow statement Cash flow drivers [€m] Q2 2020 Q2 2021 Δ Operating cash flow up €386 m driven Profit after tax 289 747 458 primarily by higher profit after tax in all three sectors, particularly Life Science D&A 559 419 -140 Delta in D&A driven by COVID-19 Chang
Slide 17: Guidance
Guidance 03
Slide 18: Full-year 2021 guidance
Full-year 2021 guidance Net sales: Organic: +12% to +14% YoY FX: -2% to -4% YoY ~€18.8 – 19.7 bn EBITDA pre: Organic: +21% to +25% YoY (excl. Biogen1) FX: -2% to -4% YoY ~€5.6 – 6.0 bn EPS pre: ~ €7.80 – 8.50 1 Q3 20 reversal of the provisions for the patent litigation proceedings for Rebif in the a
Slide 19: 2021 business sector guidance
2021 business sector guidance1 Net sales EBITDA pre Healthcare Organic: +7% to +10% Organic:+15% to +18% YoY Mainly driven by ® (excl Biogen2) Mavenclad , Bavencio® and recovery FX: -5% to -7% YoY of Fertility ~€2,050 – 2,150 m Base business organically around stable Net sales EBITDA pre
Slide 20: Merck Group: Looking beyond 2021
Merck Group Looking beyond 2021 Life Science Healthcare Electronics Upgrading the Updating Further upgraded COVID-19 PS floor 2022 pipeline sales to guidance also positive for 2022 to € 700m €1.6 bn to €1.8 bn signal for 2022 and beyond Higher 2021 overall COVID- Mavenclad® peak sales of Conti
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