Merck Kgaa · XETR:MRK

Merck Kgaa — Q1 2023 Earnings Presentation

17 slides from Merck Kgaa's earnings presentation, May 11, 2023

  1. Slide 1: Global diversification drives performance

    Global diversification drives performance Merck Q1 2023 results Media Call Marcus Kuhnert, CFO May 11, 2023

  2. 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

  3. Slide 3: Agenda

    Agenda Executive summary Financial overview Outlook & Guidance 3 Merck Q1 2023 Results Presentation | May 11, 2023

  4. Slide 4: Executive summary

    Executive summary 01

  5. Slide 5: Highlights Q1 2023: Operations Financials

    Highlights Q1 2023: Operations Financials Life Science: Q1 organic sales: +1%  +1% org. growth despite severe Covid-19 headwinds  Core business1 at +7% org. sales growth, mainly driven by Q1 organic EBITDA pre: -2% LSS and SLS  +3% org. growth in PS core, despite inventory dynamics Guidance: Heal

  6. Slide 6: Healthcare performance drives Group sales growth; EBITDA pre burdened by Electronics and fading Covid-19 business

    Healthcare performance drives Group sales growth; EBITDA pre burdened by Electronics and fading Covid-19 business Q1 YoY Net Sales Q1 YoY EBITDA pre Organic Currency Portfolio Total €1,629 m €1,587 m Life Science 0.6% 0.9% 0.3% 1.7% -1.7% -0.5% -0.4% Healthcare 5.3% 0.8% 0.0% 6.2% Electronics -7.1%

  7. Slide 7: Financial overview

    Financial overview 02

  8. Slide 8: Q1 2023: Overview

    Q1 2023: Overview Key figures Comments  Sales up +2%, driven largely by [€m] Q1 2022 Q1 2023 Δ performance of Healthcare, supported Net sales 5,198 5,293 1.8% by slight FX tailwinds EBITDA pre 1,629 1,587 -2.6%  Electronics and fading Covid-19 Margin (in % of net sales) 31.3% 30.0% -1.4pp business

  9. Slide 9: Q1 2023: Reported figures

    Q1 2023: Reported figures Reported results Comments  EBIT decline of -12% mainly driven [€m] Q1 2022 Q1 2023 Δ by costs of efficiency initiatives at Group level and higher D&A EBIT 1,173 1,035 -11.8% Financial result -34 -23 -33.9%  Improved financial result primarily driven by higher interest inc

  10. Slide 10: Life Science Q1: Robust org. growth of +7% in core business

    Life Science Q1: Robust org. growth of +7% in core business, with Process Solutions core at +3% org.; sharp decline in Covid-19 business as expected Life Science P&L Net sales bridge [€m] IFRS Pre €2,445 m 0.6% 0.9% 0.3% €2,487 m Q1 2022 Q1 2023 Q1 2022 Q1 2023 Net sales 2,445 2,487 2,445 2,487 M&S

  11. Slide 11: Healthcare Q1: Profitable growth driven by Bavencio and Mavenclad

    Healthcare Q1: Profitable growth driven by sales momentum of Bavencio® and Mavenclad® in line with the mid-term guidance Healthcare P&L Net sales bridge [€m] IFRS Pre €1,795 m 5.3% 0.8% 0.0% €1,905 m Q1 2022 Q1 2023 Q1 2022 Q1 2023 Net sales 1,795 1,905 1,795 1,905 * M&S -376 -381 -375 -380 Q1 2022

  12. Slide 12: Electronics Q1: Semi Solutions grows +2% org.

    Electronics Q1: Semi Solutions grows +2% org., ahead of a depressed market; decline in Display Solutions weighs on sales and profits Electronics P&L Net sales bridge €957 m 0.8% 0.3% €901 m [€m] IFRS Pre Q1 2022 Q1 2023 Q1 2022 Q1 2023 -7.1% Net sales 957 901 957 901 M&S * -156 -158 -156 -158 +0.0%

  13. Slide 13: Balance sheet

    Balance sheet Assets [€bn] Liabilities [€bn] 48.5 48.6 48.6 48.5 Cash & cash equivalents 1.9 1.6 4.1 4.3 Receivables 4.6 4.9 Inventories 26.2 26.0 Net equity Intangible assets 25.7 25.0 10.6 10.4 Financial debt Property, plant 3.3 3.4 Payables/refund liabilities 8.2 8.2 2.1 2.1 & equipment Provision

  14. Slide 14: Outlook & Guidance

    Outlook & Guidance 03

  15. Slide 15: Full-year 2023 guidance

    Full-year 2023 guidance Net sales: Organic: +1% to +4% YoY (ex-Covid: +4% to +7%) FX: -5% to -2% YoY ~€21.2 – €22.7 bn EBITDA pre: Organic: -5% to 0% YoY FX: -5% to -2% YoY ~€6.1 – €6.7 bn EPS pre: ~€8.80 to €9.90 15 Merck Q1 2023 Results Presentation | May 11, 2023

  16. Slide 16: 2023 business sector guidance

    2023 business sector guidance1 Net sales EBITDA pre Life Science  Organic: -2% to +2%; ex-Covid: +3% to +8%  Organic:-8% to -4% YoY  FX: -5% to -1% YoY  FX: -6% to -2% YoY  ~€9.70 bn to €10.45 bn  ~€3.20 bn to €3.50 bn  All BUs to contribute to core growth  Total Covid-19 sales of ~€250 m (v

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