Merck Kgaa · XETR:MRK

Merck Kgaa — FY2013 Earnings Presentation

74 slides from Merck Kgaa's earnings presentation, March 2014

  1. Slide 1: Merck – FY 2013 roadshow presentation

    Merck – FY 2013 roadshow presentation Merck – Another year of strong delivery Investor Relations March 2014

  2. Slide 2: Disclaimer

    Disclaimer Remarks All comparative figures relate to the corresponding last year’s period. Important information This presentation does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares referred to herein have not bee

  3. Slide 3: Agenda

    Agenda Business overview Transforming the company Strategy update Financial review Guidance

  4. Slide 4: Merck - A balanced portfolio of four divisions

    Merck - A balanced portfolio of four divisions The Merck Group Merck Serono Consumer Health Performance Materials Merck Millipore Leading in certain Present in OTC niche No. 1 in display materials Top 3 in life science tools specialty pharma markets markets  Life cycle management  Vitamins  Custo

  5. Slide 5: Strong businesses with attractive margins

    Strong businesses with attractive margins Operating profitability % of sales Margin* % of EBITDA pre 56% 32.8% 57% FY 2013 FY 2013 Sales: 4% 15.2% 2% EBITDA pre**: €10,700 m €3,253 m 15% 47.5% 23% 25% 24.5% 19% Merck Serono Consumer Health Performance Materials Merck Millipore *EBITDA pre margin in

  6. Slide 6: Emerging Markets drive organic growth, strong FX headwinds weigh on sales

    Emerging Markets drive organic growth, strong FX headwinds weigh on sales Merck Group FY 2013 sales by region Regional development of sales [€ m] 0% Organic sales North America Europe growth 10,741 10,700 19% Europe 3,943 +1% 3,985 +1% 37% North America 2,128 -2% 2,078 +1% 36% 8% Emerging 3,712 +2%

  7. Slide 7: We have added scale while strengthening the attractiveness of assets in our portfolio

    We have added scale while strengthening the attractiveness of assets in our portfolio 2002 revenues €7.5 bn Transformation volume 2013 revenues €11.1 bn Laboratory Distribution - + Merck Millipore Life Science Products* Millipore merged Analytics & Reagents Performance Electronic Chemicals - Materia

  8. Slide 8: Our stronger portfolio has enabled us to fundamentally improve our profitability

    Our stronger portfolio has enabled us to fundamentally improve our profitability Merck Group total revenues and adjusted EBIT margin* 2004-2013 Acquisition of Millipore €m 11,173 11,095 Acquisition of Serono 10,276 adj. EBIT 10,000 margin* Divestment of Generics 9,291 30% 8,000 7,558 7,747 7,057 6,2

  9. Slide 9: Agenda

    Agenda Business overview Transforming the company Strategy update Financial review Guidance

  10. Slide 10: Portfolio evolution improved our profitability structure, but further potential remains

    Portfolio evolution improved our profitability structure, but further potential remains Assessment of long-term financial performance relative to peers Sales growth Gross margin SG&A R&D productivity Merck Serono Consumer Health Performance Materials Merck Millipore above peers in-line with peers be

  11. Slide 11: Savings acceleration in second half of 2013; majority of program now completed

    Savings acceleration in second half of 2013; majority of program now completed Previous savings 2013 New disclosure 2013 Remaining 2014-2017* Merck Serono: €250 m Merck Serono: €275 m €25 m Consumer Health: €15 m Consumer Health: €20 m €5 m Acceleration Performance Materials: €10 m Performance Mater

  12. Slide 12: Divisional benchmarks

    Divisional benchmarks EBITDA pre margin* benchmark Merck Serono Performance Materials 34% 33% 33% 47% 47% 28% 24% 26% Merck Peer average Merck Peer average Merck Peer average Merck Peer average FY2011 FY2011 FY2013 FY2013 FY2011 FY2011 FY2013 FY2013 Consumer Health Merck Millipore 24% 26% 24% 23% 20

  13. Slide 13: Agenda

    Agenda Business overview Transforming the company Strategy update Financial review Guidance

  14. Slide 14: 2013: Highlights

    2013: Highlights Delivered on promises Targets announced in 2012 achieved Restructuring taken forward Faster implementation of savings Further improved the resource allocation Move from mature to emerging markets  Merck Serono - Start of biosimilars initiative  Consumer Health - Focus on strategic

  15. Slide 15: FY 2013: Another year of strong delivery

    FY 2013: Another year of strong delivery Sales [€ m] EBITDA pre [€ m] EPS pre [€] 0% +10% +15% +4% organic 10,741 10,700 3,253 8.78 2,965 7.61 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 15

  16. Slide 16: Biosimilars initiative

    Biosimilars initiative Merck Serono Consumer Health Performance Materials Merck Millipore Biosimilars share of total biologic market Biosimilars initiative at Merck 0.5% 1.5% 4-10%  Therapeutic area focus on:  Autoimmune diseases  Oncology  Risk-sharing through partnering in combination with in-

  17. Slide 17: ONO-4641: Ongoing evaluation of partnering options

    ONO-4641: Ongoing evaluation of partnering options Merck Serono Consumer Health Performance Materials Merck Millipore  ONO-4641 potential  Pre-clinical effect on remyelination  Potential improvement of disability progression Risk sharing  Comparative efficacy in Phase I/II trials approach  Expl

  18. Slide 18: Business platform now realigned to leverage strategic brands

    Business platform now realigned to leverage strategic brands Merck Serono Consumer Health Performance Materials Merck Millipore Restructuring achievements 2013 sales promotion spend 2013 organic sales growth  Cost base optimized to approach benchmark  Unprofitable markets and brands exited +3% Str

  19. Slide 19: Neurobion and Floratil to be transferred from Merck Serono to Consumer Health

    Neurobion and Floratil to be transferred from Merck Serono to Consumer Health Merck Serono Consumer Health Performance Materials Merck Millipore Sales EBITDA pre Rationale  Leveraging consumer-focused marketing approach by ~€742 m transferring Neurobion and Floratil to Consumer Health  Portfolio s

  20. Slide 20: Update on AZ acquisition

    Update on AZ acquisition Merck Serono Consumer Health Performance Materials Merck Millipore Extended timeline for offer Anti trust clearance  Offer has been extended until 1.00 p.m. (GMT) on March 14, 2014  Formerly February 28, 2014  Extension with view to allowing Chinese antitrust authority Ge

  21. Slide 21: 2013 Update: Merck Millipore driven by Process Solutions

    2013 Update: Merck Millipore driven by Process Solutions Merck Serono Consumer Health Performance Materials Merck Millipore Process Solutions  The industry leader and trusted partner to drug manufacturing  A platform with global reach in all markets Emerging Markets Emerging Markets share share of

  22. Slide 22: As restructuring nears completion, Merck increases focus on inorganic growth and innovation

    As restructuring nears completion, Merck increases focus on inorganic growth and innovation ~2012 - 2013 ~2014 - 2015 ~2016 - 2020 Restructuring Inorganic growth Innovation Late stage Potential Pharma pipeline data launches Merck Millipore benefitting from biosimilars trend Acquisitions Potential li

  23. Slide 23: Agenda

    Agenda Business overview Transforming the company Strategy update Financial review Guidance

  24. Slide 24: FY 2013: Targets achieved and transformation ongoing

    FY 2013: Targets achieved and transformation ongoing [€ m] FY 2013 FY 2012 Δ FY 2013 dynamics Sales 10,700 10,741 0%  Sales stable as organic growth is being overshadowed by FX EBITDA pre 3,253 2,965 10%  Strong EBITDA pre increase of Margin (% of sales) 30.4% 27.6% €288 m reflects positive EPS pr

  25. Slide 25: Merck Serono and Merck Millipore are largest absolute contributors to organic growth

    Merck Serono and Merck Millipore are largest absolute contributors to organic growth FY yoy sales Organic Currency Portfolio Total  Merck Serono and Merck Millipore Merck Serono 4% -5% 0% -1% strongest absolute contributors to organic sales growth Consumer Health 6% -5% 0% 1%  FX headwinds in all

  26. Slide 26: Merck Serono: Solid operational performance despite FX headwinds and royalty income decrease

    Merck Serono: Solid operational performance despite FX headwinds and royalty income decrease [€ m] Q4 2013 Q4 2012 Comments Sales 1,485 1,522  Organic sales growth is more than offset by currency effects,  XXX leading to slight sales decline Marketing and selling -324 -341  Ongoing good performan

  27. Slide 27: Consumer Health: Strong FX headwinds and softer cough & cold season weigh on business

    Consumer Health: Strong FX headwinds and softer cough & cold season weigh on business performance [€ m] Q4 2013 Q4 2012 Comments Sales 114 121  Q4 sales down yoy and sequentially after strong Q3, burdened by  XXX Marketing and selling -54 -59 significant FX headwinds and flat organic performance 

  28. Slide 28: Performance Materials: Reasonable performance amid strong FX headwinds and moderate destocking

    Performance Materials: Reasonable performance amid strong FX headwinds and moderate destocking [€ m] Q4 2013 Q4 2012 Comments Sales 383 416  Sales decrease due to currency headwinds and further supply  XXX Marketing and selling -33 -36 chain destocking in Liquid Crystals  Customer intimacy and co

  29. Slide 29: Merck Millipore: A strong finish of the year

    Merck Millipore: A strong finish of the year [€ m] Q4 2013 Q4 2012 Comments Sales 654 653  Stable sales as strong organic growth is offset by strong FX effects  XXX Marketing and selling -169 -174  All regions except North America (U.S. sequestration) contribute to organic growth Admin -25 -23 

  30. Slide 30: Settlement on patent dispute with AbbVie, while BMS co-promotion will yield first results

    Settlement on patent dispute with AbbVie, while BMS co-promotion will yield first results P&L effects of Humira and Glucophage Drivers Humira  From H2 2014 Merck is to receive no further license payments from AbbVie 2013 2014 2015  Merck and AbbVie reached an out-of- court settlement on patent dis

  31. Slide 31: Continuous increase of dividend

    Continuous increase of dividend Dividend development 2009-2013* 2013 dividend  Dividend of €1.90 per share proposed1 for 2013  Dividend increase of ~12% yoy 1.90  Dividend yield of ~1.5% 1.70 1.50  Payout ratio2 of 31% in a year of 1.25 restructuring 1.00 Ensure shareholders benefit 1 appropriat

  32. Slide 32: Agenda

    Agenda Business overview Transforming the company Strategy update Financial review Guidance

  33. Slide 33: Qualitative guidance for 2014

    Qualitative guidance for 2014 Merck guidance for 2014 Slight organic sales growth EBITDA pre on existing platform stable 2014 moving parts Avonex and Enbrel patent expiry Biosimilars initiative Humira settlement Rebif competition 33

  34. Slide 34: Divisional guidance

    Divisional guidance Merck Serono Consumer Health Performance Materials Merck Millipore  Sales organically stable  Moderate organic sales  Slight organic sales  Moderate organic sales  EBITDA pre slightly lower growth growth growth  Rebif: Continuous competitive  Moderate EBITDA pre  EBITDA p

  35. Slide 35: MERCK

    MERCK Living lnovahon

  36. Slide 36: Appendix

    Appendix

  37. Slide 37: Additional financial guidance

    Additional financial guidance Further financial details Merck Group royalty, license and commission income in 2015 ~€130-150 m Corporate EBITDA pre ~€-200 m Underlying tax rate ~23% to 25% Capex on PPE and Software ~€500 m Hedging / USD assumption 2014 & 2015 hedge rate ~30% at EUR/USD ~1.30 to 1.35

  38. Slide 38: Favorable tax rulings in several countries result in decrease in underlying tax rate

    Favorable tax rulings in several countries result in decrease in underlying tax rate Tax rate development 2009-2013 Tax rate rationale  Former guidance of 25 - 26% now reduced to 23 - 25% due to 40.0% Previous range ~25 - 26% New range ~23 - 25%  Beneficial tax rulings in several countries 30.0% 

  39. Slide 39: Merck 2014 industry outlook

    Merck 2014 industry outlook Merck Growth will be driven by emerging markets, especially China and Brazil Serono Mature markets will continue to be affected from austerity measures Consumer Industry sdasdsadgrowth of ~5% in Consumer Health end markets Health Emerging markets grow mid to high-single d

  40. Slide 40: Slight softening in sales as solid organic growth driven by EM and Japan is more than offset by FX

    Slight softening in sales as solid organic growth driven by EM and Japan is more than offset by FX Merck Group Q4 sales by region Regional development of sales [€ m] -3% Organic sales 2,712 2,636 growth North America Europe Europe +3% 989 1,015 +4% 18% 39% -11% North America 532 474 -6% 8% Emerging

  41. Slide 41: Q4 2013: Solid performance burdened by strong currency effects

    Q4 2013: Solid performance burdened by strong currency effects [€ m] Q4 2013 Q4 2012 Δ Q4 2013 Sales 2,636 2,712 -3%  Sales decline as organic improvement is more than offset EBITDA pre 795 790 1% by negative currency effects Margin (% of sales) 30.2% 29.1%  Adjusted EBITDA and EPS improve slightl

  42. Slide 42: Merck Millipore and hedging are key elements of slight profitability improvement

    Merck Millipore and hedging are key elements of slight profitability improvement Q4 yoy sales Organic Currency Portfolio Total  Merck Serono and Merck Millipore Merck Serono 4% -7% 0% -2% as only contributors to absolute organic growth Consumer Health 0% -6% 0% -6%  Adverse currency effects contin

  43. Slide 43: Loss of royalty income and higher one-time items weigh on reported earnings

    Loss of royalty income and higher one-time items weigh on reported earnings [€ m] Q4 2013 Q4 2012 Δ Reported results EBIT 264 312 -15%  EBIT burdened by lower royalty income as well as FX headwinds Financial result -63 -61 4%  Income tax gain due to one-off change in applicable tax rates and high

  44. Slide 44: Strong reported figures reflect a year of structural improvements

    Strong reported figures reflect a year of structural improvements [€ m] FY 2013 FY 2012 Δ Reported results EBIT 1,611 964 67%  EBIT increases due to strong 2013 performance, prior year burdened by one-time items Financial result -222 -255 -13%  Ongoing deleveraging process improves financial resul

  45. Slide 45: Merck Serono: Good organic growth and accelerated cost savings implementation fuel profitability

    Merck Serono: Good organic growth and accelerated cost savings implementation fuel profitability [€ m] FY 2013 FY 2012 Comments Sales 5,954 5,996  Sales virtually stable as ongoing good organic momentum in  XXX Emerging Markets is being offset by adverse currency effects Marketing and selling -1,2

  46. Slide 46: Merck Serono organic growth by product

    Merck Serono organic growth by product Q4 2013 organic sales growth [%] by key products [€ m] FY 2013 organic sales growth [%] by key products [€ m]  XXX  XXX 452 0% 1,865 +1% 471 1,893 223 +8% 882 +6% 224 887 148 +2% 586 -1% 153 612 105 +23% 401 +11% 93 380 91 -3% 394 +5% 104 400 60 +3% 235 -2% 6

  47. Slide 47: Rebif – a year of stable performance driven by organic growth in H1 and sales erosion in H2

    Rebif – a year of stable performance driven by organic growth in H1 and sales erosion in H2 Rebif performance - Regional sales evolution [€ m]  Sales decrease to €452 m in Q4 due to FX headwinds Trend North America Q4 drivers  U.S. price increases overshadowed Price Price by U.S. volume declines 3

  48. Slide 48: Erbitux – ongoing strong performance in Japan and Emerging Markets supported by good data

    Erbitux – ongoing strong performance in Japan and Emerging Markets supported by good data for EU Erbitux sales by geography Erbitux performance  Organic growth of 8% in Q4 is offset +8% Q4 yoy [€ m] organic growth by FX effects, leading to stable 250 reported sales of €223 m  Japan with significan

  49. Slide 49: General Medicine with ongoing good momentum, while Fertility and Endocrinology show slight growth

    General Medicine with ongoing good momentum, while Fertility and Endocrinology show slight growth Sales evolution Q4 drivers Fertility Q4 drivers  Organic Fertility growth of 3% driven [€ m] by strong performance in China, Japan 210 and Turkey 180 Organic  Endocrinology with good organic 150 Q4 20

  50. Slide 50: Merck Serono pipeline

    Merck Serono pipeline Phase I Phase II Phase III In registration  ATX-MS-1467  ONO-4641 (Ceralifimod)  TH-302 Oral S1P receptor modulator  Erbitux® (cetuximab) Immune-tolerizing agent Hypoxia-targeted drug Multiple sclerosis Anti-EGFR mAb Multiple sclerosis Soft tissue sarcoma  Plovamer acetate

  51. Slide 51: Merck Serono pipeline newsflow

    Merck Serono pipeline newsflow Project Indication Current phase Timing Event Pergoveris™ Poor ovarian responder patients NA Q1 2014 Start of Phase III study C-Met inhibitor Non Small Cell Lung Cancer Phase II Q1 2014 Start of Phase II study C-Met inhibitor Hepatocellular carcinoma Phase II Q1 2014 S

  52. Slide 52: Consumer Health: Healthy organic growth and execution of efficiency measures drive profitability

    Consumer Health: Healthy organic growth and execution of efficiency measures drive profitability [€ m] FY 2013 FY 2012 Comments Sales 477 473  Higher sales on strong organic increase mitigated by adverse  XXX currency effects and weak cough and cold season in Q4 Marketing and selling -213 -218  S

  53. Slide 53: Performance Materials: Pigments restructuring and liquid crystals leadership increase profitability

    Performance Materials: Pigments restructuring and liquid crystals leadership increase profitability [€ m] FY 2013 FY 2012 Comments Sales 1,642 1,674  Sales decline slightly as organic growth is more than offset by  XXX currency headwinds Marketing and selling -141 -143  Global display trends driv

  54. Slide 54: Merck Millipore: Resilient business delivers margin expansion amid FX headwinds and U.S. sequestration

    Merck Millipore: Resilient business delivers margin expansion amid FX headwinds and U.S. sequestration [€ m] FY 2013 FY 2012 Comments Sales 2,628 2,598  Price and volume increases are mitigated by FX mainly due to the  XXX devaluation of the Japanese yen Marketing and selling -683 -676  Ongoing h

  55. Slide 55: Balance sheet: A strong foundation

    Balance sheet: A strong foundation [€ m] Dec 31, 2013 Dec 31, 2012 Dec 31, 2013 Dec 31, 2012 Current assets 7,385 6,626 Net equity 11,069 10,415 Cash and cash equivalents 981 730 Current liabilities 3,899 4,562 Marketable securities and financial assets 2,411 1,798 Current financial liabilities 440

  56. Slide 56: Solid operating cash flow in Q4 2013

    Solid operating cash flow in Q4 2013 [€ m] Q4 2013 Q4 2012 Δ Cash flow drivers Profit after tax 281 276 5  Stable profit after tax  Amortization up due to impairment for D&A 462 359 103 Humira settlement of €127 m Changes in provisions -238 -172 -66  Changes in provision higher due to release of

  57. Slide 57: Underlying cash flow strength

    Underlying cash flow strength [€ m] FY 2013 FY 2012 Δ Cash flow drivers Profit after tax 1,209 579 630  Higher profit after tax due to good operational business performance; D&A 1,458 1,397 61 prior year burdened by restructuring Changes in provisions -203 379 -582  Changes in provisions contain c

  58. Slide 58: External growth criteria

    External growth criteria Portfolio fit: Innovations for specialty markets Strategic Complementary to business model: Customer criteria intimacy and leading positions Cultural fit EPS accretive in one to three years for commercial asset acquisitions Financial Strong investment grade rating maintained

  59. Slide 59: Financial M&A framework

    Financial M&A framework Perspective on leverage Perspective on financing Rating: Strong investment High likelihood grade rating at any time Financial volume Cash Debt Net debt/EBITDA in corridor of Merck has sufficient 1.5x – 2.5x headroom Divestments Equity FY 2013 EBITDA pre guidance: €3.2 - 3.25

  60. Slide 60: Acquisition of AZ Electronic Materials – an excellent fit for Merck

    Acquisition of AZ Electronic Materials – an excellent fit for Merck Strategic rationale of the AZ Electronic Materials acquisition  Adds a premium specialty chemicals business to Merck’s Strengthening existing business of high-margin liquid crystals (LC) portfolio  Expands presence in Asian growth

  61. Slide 61: Merck Liquid Crystals and AZ – two leading premium solution providers joining forces

    Merck Liquid Crystals and AZ – two leading premium solution providers joining forces Merck AZ Liquid Electronic Crystals Materials Strong position in specialty segments   Superior profitability and cash conversion   Megatrends drive growth   Tailor-made solutions with high innovation content 

  62. Slide 62: AZ Electronic Materials – attractive business characteristics

    AZ Electronic Materials – attractive business characteristics Key strengths Overview of financial data1 2 LTM  No. 1 or 2 in ~80% of sales; high share US$ m 2011 2012 Segment H1 2013 of patent protection position Revenue 792 794 774  Chemicals only ~3% of procurement costs % yoy at constant FX +10

  63. Slide 63: Transaction details

    Transaction details Offer price Transaction size and financing  Enterprise value (EV) ~€2.1 bn incl. net debt5 ~€238 m  GBp 403.5 per share in cash or equity value  100% cash-financed 1 ~GBP 1.6 bn (€1.9 bn)  Offer is recommended by AZ‘s Board of Directors  Premium 41% over 3- Timing month volu

  64. Slide 64: AZ Electronic Materials acquisition – immediately financially accretive

    AZ Electronic Materials acquisition – immediately financially accretive Merck Group - Pro-forma 20121 sales and EBITDA pre2 Expected financial impacts [€ bn] Sales EBITDA pre [€ bn]  Group sales and EBITDA pre lifted by ~+5% ~+7% 4 5-7%; margin remains at ~30% 12  Synergies: €25 m, i.e. ~4% of 10

  65. Slide 65: AZ Electronic Materials acquisition is a strong strategic fit

    AZ Electronic Materials acquisition is a strong strategic fit Leverage Like our Liquid Crystals business, AZ has an attractive business business model based on innovation, high customer model proximity, solid market share and superior profitability Broadening Merck’s product offering to the display

  66. Slide 66: Rigorous pension funding of last three years brings Merck up to market standards

    Rigorous pension funding of last three years brings Merck up to market standards Merck Group pension funding 2010 versus 2013  Significant improvement of funded status since 2010 by ~€1 bn [€ bn] 34% Funding rate 67%  Start of CTA1 in 2011 3  Overall CTA funding of more than €1 bn 0.9 2  Improve

  67. Slide 67: Comfortable liquidity situation through broad mixture of financing sources

    Comfortable liquidity situation through broad mixture of financing sources Financial profile Bond Maturity Profile as of 31 October 2013 [€ m]  A ratings: Moody’s A3 (stable outlook) and S&P A (stable outlook) 1,350  Cash and marketable securities 1,350 of ~€3.3 bn  Completely undrawn syndicated

  68. Slide 68: Changes in FX rates impact top and bottom lines

    Changes in FX rates impact top and bottom lines Sensitivities* of top 3 foreign currencies - Merck Group, unhedged Currency management  Exposure from booked revenues and Deviation Group Sales: decrease by ~€15 m invoices, receivables and liabilities, Impact 0.01 U.S. dollar U.S. $ increase versus e

  69. Slide 69: Corporate Responsibility has always been an integral part of Merck’s corporate culture

    Corporate Responsibility has always been an integral part of Merck’s corporate culture Merck Corporate Responsibility UN Global Compact, Responsible Care, Merck Social Charter, Code of Conduct Products Environment People “Merck products serve people’s “In the manufacture of our products, “We strengt

  70. Slide 70: Merck continues to improve its culture of Corporate Responsibility

    Merck continues to improve its culture of Corporate Responsibility Targets on responsibility measure for products and people Product safety Diversity Establish a global Implementation of Increase % of women  2010 = 22% Status Status Goal Goal hazard and risk REACH, GHS/CLP in management to at  201

  71. Slide 71: One-time items in Q4 2013

    One-time items in Q4 2013 One-time items on EBIT [€ m] Q4 2013 Q4 2012 One-time items thereof D&A One-time items thereof D&A Merck Serono 164 144 65 5 Consumer Health 1 0 34 11 Performance Materials 7 -4 19 0 Merck Millipore 40 17 33 1 Corporate & Other 14 0 15 0 Total 226 157 136 17 71

  72. Slide 72: One-time items in FY 2013

    One-time items in FY 2013 One-time items on EBIT [€ m] FY 2013 FY 2012 One-time items thereof D&A One-time items thereof D&A Merck Serono 258 189 391 46 Consumer Health 1 0 48 11 Performance Materials 10 -4 8 0 Merck Millipore 70 17 54 1 Corporate & Other 47 0 162 0 Total 387 203 664 59 72

  73. Slide 73: Financial Calendar

    Financial Calendar Date Event May 9, 2014 Annual General Meeting May 15, 2014 Q1 2014 Earnings Release August 7, 2014 Q2 2014 Earnings Release November 13, 2014 Q3 2014 Earnings Release 73

  74. Slide 74: Investor Relations contact details

    Investor Relations contact details Constantin Fest Alessandra Heinz Svenja Bundschuh Head of Investor Relations Assistant Investor Relations Assistant Investor Relations +49 6151 72-5271 +49 6151 72-3321 +49 6151 72-3744 constantin.fest@merckgroup.com alessandra.heinz@merckgroup.com svenja.bundschuh

Merck KGaA — FY2013 Earnings Presentation on 6ix