Merck Kgaa · XETR:MRK
Merck Kgaa — Non-Deal Roadshow (March 2017)
87 slides from Merck Kgaa's roadshow presentation, March 2017
Slide 1: Merck – Q4 2016 Roadshow
MERCK – Q4 2016 ROADSHOW Investor Relations March 2017
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 Business overview Transforming the company Healthcare – Funding for success Life Science – Focusing on profitable growth Performance Materials – Expanding leadership and innovation Executive summary and guidance 3
Slide 4: Business Overview
oO} BUSINESS OVERVIEW Sa aan DARREK
Slide 5: Portfolio of three high-tech businesses
Merck Group Portfolio of three high-tech businesses Healthcare Performance Life Science Materials Leading in specialty Leading life science Market leader in pharma markets company specialty materials • Biologics and small-molecules • Tools and services for biotech • Innovative display materials rese
Slide 6: Strong businesses with attractive margins
Merck Group Strong businesses with attractive margins % of sales Margin1 % of EBITDA pre 46% 28.2% 42% Q4 2016 Q4 2016 Sales: EBITDA pre2: €3,830 m €1,075 m 29.1% 35% 38% 23% 16% 44.6% Healthcare Life Science Performance Materials 1EBITDA pre margin in % of net sales; 2Including Corporate/Others (-€
Slide 7: Transforming the Company
TRANSFORMING THE (DZ company DARREK
Slide 8: Strategic roadmap 2016-2022
Merck Group Strategic roadmap 2016-2022 2012-2015 2016-2018 2019-2022 Turnaround Fully leverage Efficiency First pipeline in Healthcare pipeline potential program launches Portfolio Above- 3 strong market growth optimization in LS and PM pillars Portfolio in Life Science Sigma management integration
Slide 9: Merck has added scale and strengthened the attractiveness of its portfolio
Merck Group Merck has added scale and strengthened the attractiveness of its portfolio 2007: ~€7 bn sales Transformation volume 2016: ~€15 bn sales Consumer Health merged + Healthcare 1 Ethicals Serono Generics - ~€5 bn ~€30 bn + Life Science Millipore & 2 Life Science Solutions Sigma-Aldrich merged
Slide 10: Profitability improved fundamentally
Merck Group Profitability improved fundamentally Acquisition of Acquisition of AZ Sigma-Aldrich 1 Electronic Materials €m Margins Acquisition of Millipore 15,024 14,000 35% Acquisition of Serono 12,845 12,000 Divestment of Generics 11,363 10,756 10,735 9,922 30% 10,000 8,951 30% 30% 7,202 29% 8,000
Slide 11: We have created three leading businesses
Merck Group We have created three leading businesses Healthcare Life Science Performance Materials Serono Millipore AZ Sigma • Leading biotech company • No. 3 in the world market • World market leader • Global footprint • Broad and global product portfolio • Technology and innovation leader • Strong
Slide 12: Clear set of priority goals to be realized by 2018
Merck Group Clear set of priority goals to be realized by 2018 Performance Healthcare Life Science Materials ~40% ~35% ~25% EBITDA EBITDA EBITDA pre* pre* pre* Maximize growth of existing Focus on seamless integration Drive innovation and franchises and deliver cost synergies technology leader
Slide 13: Healthcare – Funding for Success
HEALTHCARE – FUNDING FOR SUCCESS
Slide 14: Healthcare is set to deliver on promising pipeline candidates
Healthcare Healthcare is set to deliver on promising pipeline candidates Stable existing business to fuel slight organic growth Deliver Solid pipeline of oncology, immuno-oncology and on organic growth immunology molecules Transformation of R&D operating model ongoing Focus on pipeline Competitive R
Slide 15: Operational excellence drives healthy growth of existing businesses
Healthcare Operational excellence drives healthy growth of existing businesses Historic organic sales growth development Organic growth Organic 22 quarter Ø ~4% org. for 22 growth, % 7% consecutive 5% 5% 5% 4% 5% 4% 4% 4% 3% quarters 2% 2% 2% 3% 1% 0.3% …2012 2013 2014 2015 2016 Qualitative organic
Slide 16: Well on track to deliver the pipeline
Healthcare Well on track to deliver the pipeline Growth initiatives Potential pipeline sales > €2 bn* and pipeline Deliver the pipeline Existing business < €50 m* 2014 2018E 2017 2018… …2022 Key investments Increase R&D costs in 2017 expected to exceed 2016 R&D spending Avelumab Main moving parts: -
Slide 17: Increasing R&D productivity with focus on potentially transformative assets
Healthcare Increasing R&D productivity with focus on potentially transformative assets Phase I Phase II Phase III Registration BTK-i Avelumab atacicept tepotinib Avelumab Avelumab (hematological tumors) (mono/combinations) (SLE) (HCC/NSCLC) (mono/combinations) (MCC, UC 2L) DNA-Pki / ATRi M7824/TGF-b
Slide 18: Life Science – Focusing on Profitable Growth
LIFE SCIENCE – FOCUSING ON PROFITABLE GROWTH
Slide 19: Serving customers across the life science industry
Life Science Serving customers across the life science industry RESEARCH PROCESS APPLIED Academic and Pharmaceutical companies Diagnostic manufacturers government institutions Small biotech Clinical testing labs Biopharma R&D Contract manufacturing Food & Beverage Industry R&D orga
Slide 20: Sustainable value based on strong strategic levers
Life Science We create sustainable value that is based on strong strategic levers Wide, innovative Balanced geographic Industry-leading portfolio footprint capabilities A combined portfolio of +300,000 Increased presence in North America Outstanding supply chain products management (ability to
Slide 21: Above-market growth to be enhanced by top-line synergies
Life Science Above-market growth to be enhanced by top-line synergies Merck and Sigma-Aldrich organic growth rates versus market growth Organic Above-market growth, % 6.5% 6.3% growth 5.5% 4.5% 7.3%1 3.8% Long-term average market growth2 ~4% 3.5% 2.6% 3.8% … 2012 2013 2014 2015 2016 2017+ Merck Sigm
Slide 22: Synergy upgrade driven by fast 2016 execution and top-line synergies
Life Science Synergy upgrade driven by fast 2016 execution and top-line synergies EBITDA pre impact of synergy ramp-up [€m] Sources ~5 ~105 ~185 ~280 Cost synergy update (for 2016) +20 • Faster implementation of synergy measures in all areas • 2016 expected total cost synergies of ~€105 m +15 • Inte
Slide 23: We aim to be the profitability champion of the sector
Life Science We aim to be the profitability champion of the sector Sales breakdown as of Q4 2016 Above industry margin levels Profitability champion including synergies* Applied Solutions Research Solutions Mid single digit growth Low single digit growth Company A 26% 36% Millipore Sigma SIAL MM Com
Slide 24: Performance Materials – Expanding Leadership and Innovation
PERFORMANCE MATERIALS – EXPANDING LEADERSHIP AND INNOVATION
Slide 25: The four pillars are set for future profitable growth
Performance Materials The four pillars are set for future profitable growth Mid-term Business unit % sales Products growth trend Liquid crystals (LC) and photoresists for TVs, smartphones and tablet computers Display Materials ~50-55% Other display and non-display applications (e.g. LC Windows)
Slide 26: Four-pillar strategy and innovation power strengthen earnings profile
Performance Materials Four-pillar strategy and innovation power strengthen our earnings profile Ongoing innovation Launch of innovative products and new business models continues Superior profitability 1 Four strong pillars Strength Combination of four 2 Strong earnings resilience highly profitable
Slide 27: Sound platform to deliver high earnings
Performance Materials Sound platform toMaterials Our Performance deliver high earnings Business is based on 4 pillars 1 Four-pillar platform diversifies earnings stream Balanced sales and consistently high earnings Liquid Crystals remain key earnings contributor AZ* expertise is being leveraged
Slide 28: Long-term growth and profitability drivers are intact
Performance Materials Long-term growthMaterials Our Performance and profitability Businessdrivers areon is based intact 4 pillars 3 Macroeconomics and electronics remain buoyant Display market opportunities continue to evolve USD bn Global consumer electronics market expected to 170 Transparent di
Slide 29: Unique selling proposition of SA-VA
Performance Materials Unique selling proposition of SA-VA for manufacturers and consumers 1 Process Innovation 3 Elimination of LC alignment process Low-temperature production enables Fewer sources of production errors potential for future applications (Plastic, flexible, organic) Fully comp
Slide 30: Executive Summary and Guidance
EXECUTIVE SUMMARY AND GUIDANCE
Slide 31: We are well on track to deliver on our promises
Merck Group We are well on track to deliver on our promises 1 Net debt reduced by ~€1 bn Group Strict financial discipline supports rating Important Base business growing milestones Healthcare 2 pipeline compounds in registration reached to deliver on our Sigma-Aldrich synergies raised promises Life
Slide 32: Clear financial priorities for the next two years
Merck Group Merck has clear financial priorities for the next two years Strong cash flow will be used to drive down gearing to <2x net debt / EBITDA pre in 2018 Focus on cash flow and deleveraging Larger acquisitions (>€500m) ruled out for the next two years (or financed by divestments) Divide
Slide 33: Qualitative Merck full-year 2017 guidance
Merck Group Qualitative Merck full-year 2017 guidance Net sales: Slight to moderate organic growth EBITDA pre: About stable* EBITDA pre growth drivers EBITDA pre growth burdens • Organic net sales growth with all 3 businesses contributing • R&D costs increase 2017 in Healthcare: ongoing progress of
Slide 34: Slide 34
Slide 35: Appendix
Appendix Guidance details Healthcare Life Science Performance Materials Financial details 35
Slide 36: Guidance Details
oO} GUIDANTE DETAILS Sa aan DARREK
Slide 37: 2017 business sector guidance
2017 business sector guidance Healthcare Performance Life Science Materials Net sales Net sales Net sales • Slight organic growth • Organic growth slightly above • Slight organic growth • Ongoing organic Rebif decline market; driven by Process Solutions • Volume increases in all businesses • Other f
Slide 38: Additional financial guidance 2017
Additional financial guidance 2017 Further financial details Corporate & Other EBITDA pre ~ -€350 – -380m Interest result ~ -€250 – -260 m Effective tax rate ~ 23% to 25% Capex on PPE ~ €850 – 900 m 2017 hedge ratio ~50% Hedging/USD assumption at EUR/USD ~ 1.11 to 1.12 2017 Ø EUR/USD assumption ~ 1.
Slide 39: Strong focus on cash generation to ensure swift deleveraging
Strong focus on cash generation to ensure swift deleveraging Net financial debt* and leverage development Focus on deleveraging [Net financial debt/ EBITDA pre] • Commitment to swift deleveraging to 4x ensure a strong investment grade credit rating and financial flexibility • Strong cash flow will b
Slide 40: High cost base in strong currencies and hedging losses partially offset FX tailwinds
High cost base in strong currencies and hedging losses partially offset FX tailwinds Healthcare Performance Life Science Materials Sales Sales Sales • Global presence • Balanced regional sales split • ~80% of sales in Asia-Pacific between EU, NA and RoW • ~40% of sales in Europe • Industry is USD-dr
Slide 41: Sustainable dividend development
Sustainable dividend development Dividend1 development 2011-2016 2016 dividend • Dividend of €1.20 per share proposed2 for 2016, reflecting 19.3% of EPS pre 1.20 • Dividend development in line with 1.05 1.00 business performance and earnings 0.95 progression 0.85 0.75 • Dividend yield3 of 1.21% 2 20
Slide 42: Our strong innovation capabilities will drive growth
Our strong innovation capabilities will drive growth 3 New product launch cadence by business sector 1 New product sales potential 2022 2 ~ 20% BTKi > €2 bn 3 Avelumab Avelumab TGF-Beta gastric, DNA-PK MCC trap NSCLC Cladribine Next-gen. Avelumab atacicept Tablets filtration RCC, ova > €1 bn CellASI
Slide 43: Healthcare
© 2 HEALTHCARE DARREK
Slide 44: Portfolio management: differentiating across diverse business models
Portfolio management: Differentiating across diverse business models Oncology & Immunology General Medicine portfolio Biologicals portfolio innovation portfolio • Limited risk with high cash • Moderate risk and reward profile • High reward at high risk generation • Economies of scale due to state- •
Slide 45: The road to maximizing Healthcare's existing franchises is clear
The road to maximizing Healthcare’s existing franchises is clear Continue to drive mCRC* share by increasing patient testing and expanding head and neck coverage Ongoing 3x3 growth strategy implementation to strengthen Consumer sales and marketing activities delivering above-market Health organic sa
Slide 46: Clinical pipeline
Healthcare Clinical pipeline Phase I Phase II Phase III Registration Tepotinib – c-Met kinase inhibitor Tepotinib Avelumab – Anti-PD-L1 mAb Cladribine4 Tablets – Solid tumors c-Met kinase inhibitor Non-small cell lung cancer 1L1 Lymphocyte targeting agent M2698 – p70S6K & Akt inhibitor Non-small cel
Slide 47: Avelumab plays predominantly in attractive and differentiated niches
Avelumab plays predominantly in attractive and differentiated niches avelumab NSCLC 80 Number of trials per indication 65 Melanoma Gastric/Esophageal 40 Head & Neck RCC 30 CRC Breast Pancreas Bladder NHL 20 Ovarian Glioblastoma HL 10 Prostate SCLC Multiple Myeloma AML Liver / HCC Mesothelioma CLL MC
Slide 48: Avelumab differentiation strategy by target indication and market
Avelumab – differentiation strategy varies according to chosen target indication and market • Ambition to lead in niche indications (e.g. Merkel 1 cell) or markets (e.g. Asia for gastric) • Quick to market strategy (e.g. BTD designation Unsaturated for MCC) and / or niche • Small, but less crowded m
Slide 49: The alliance initiated nine Phase III studies
The alliance initiated nine Phase III studies Estimated patient Estimated primary Indication Treatment line Comparator enrollment completion 1 Ovarian Platinum res./ref. 550 Pegylated liposomal doxorubicin H1 2018 2 Ovarian 1st line 951 Platinum-based chemotherapy H2 2019 Physician‘s choice of plati
Slide 50: Clinical results support avelumab for metastatic Merkel cell carcinoma
Clinical results support avelumab as potential therapeutic option for metastatic Merkel cell carcinoma Encouraging response rates1 Potential for differentiation • ORR: 31.8% • Largest international multicenter, open-label study of anti-PD- L1/PD-1 reported in this patient population (88 patients) –
Slide 51: For Avelumab, combinations will drive differentiation strategy
For Avelumab, combinations will drive differentiation strategy 1 • Phase III: Ovarian 1L & Plat. Res. Ref. Combinations (Avelumab + Chemotherapy) • Phase III: Renal 1L (Avelumab + Inlyta) • Phase III: L/A Head and Neck Monotherapy (Avelumab + Chemoradiation) 2 • Phase I: DLBCL (Avelumab + various ag
Slide 52: Cladribine tablets – MAA submission accepted by EMA in July 2016
Cladribine tablets – MAA submission accepted by EMA in July 2016 Background Potential for differentiation • Targets lymphocytes (both B and T cells), integral to MS pathogenesis • Two Phase III and one Phase IIIb extension studies conducted in RRMS and early MS1,2,3; Phase II study in patients faili
Slide 53: PD-L1–TGF-beta potential to move beyond checkpoint inhibitors
PD-L1–TGF-beta indicates potential to move beyond checkpoint inhibitors Four focus areas for exploration Status and next steps • Novel, first-in-class bifunctional immunotherapy Replace Identify • Bifunctional mode should result in broader application vs. current opportunities respective mono-functi
Slide 54: Update on selected assets (1/2)
Update on selected assets (1/2) • Binds to receptors of two cytokines regulating maturation, function, and survival of B cells (B-lymphocyte stimulator (BLyS) & a proliferation-inducing ligand (APRIL)) • ADDRESS II (Phase IIb) in SLE patients (n=306): Phase III decision • Primary endpoint not met, b
Slide 55: Update on selected assets (2/2)
Update on selected assets (2/2) • M3814 is a selective and potent inhibitor of DNA-PK, a kinase mediating DNA double strand break repair • Preclinical models showing complete responses and/or increased PFS in combination with radiotherapy in several Analysis of M3814 Phase I DDR- xenograft models (S
Slide 56: Newsflow: Upcoming pipeline catalysts
Newsflow: Upcoming pipeline catalysts MCC: Expected FDA/EMA decision H1/H2 2017 Avelumab UC: Expected FDA decision H2 2017 Subject to interaction Atacicept Phase III decision with authorities BTK inhibitor (RA) Phase II data readout Q2 2017 M7824 Phase I interim data mid 2017 (anti PD-L1 – TGF-beta
Slide 57: Healthcare is well set for future growth
Healthcare is well set for future growth Stable existing Business and market specific initiatives in place business to maximize existing business franchises Diversified but focused pipeline with high quality assets Strong R&D in the areas Immuno-Oncology, Oncology and Immunology pipeline healthily s
Slide 58: Life Science
© BZ LIFE STIENTE DARREK
Slide 59: A balanced portfolio and geographic presence
A balanced portfolio and geographic presence Sales by business unit Sales by region North Applied Research America Europe 35% 36% 26% FY 2016 sales: 35% Q4 2016 Q4 2016 €5.7 bn 24% 38% 4% Asia-Pacific 2% Middle East Process Africa Latin America 59
Slide 60: Life Science is an attractive market
Life Science is an attractive market RESEARCH PROCESS APPLIED ~€42 bn ~€38 bn ~€45 bn Low single digit High single digit Mid single digit Growth in volume of experiments Drug volume growth Volume growth from Mild growth in academic funding − from biologics − Population growth Investment in
Slide 61: Success driven by portfolio breadth, customer focus and world-class capabilities
Success driven by portfolio breadth and differentiation, a customer-centric approach and world-class capabilities RESEARCH PROCESS APPLIED Broad, relevant and Developed market: Customized workflows innovative portfolio Deep expertise in each for specific applications unit operation Simple customer A
Slide 62: Our end-to-end portfolio for manufacturing mAbs
Process Solutions Our end-to-end portfolio for manufacturing mAbs MAKE Produce antibodies PURIFY Remove cell debris, virus, etc. FORMULATE Final drug product EX-CELL® Advanced™ Viresolve® Pro Pellicon® Clarisolve ® FlexReady ® CHO Fed-batch solution cassette filters clarification chromatography Medi
Slide 63: #1 website in research life science industry
#1 website in research life science industry Industry leading e-commerce platform and supply chain capability SEARCH CONTENT ORDER Hundreds of Online leader in thousands of scientific content: products at your articles, protocols Real-time pricing Convenient and simple fingertips and peer reviewed a
Slide 64: Life Science delivers synergies and integrates as planned
Life Science delivers synergies and integrates as planned synergies + Integration Delivery of 2016 synergy target of Smooth integration ongoing with early €105 m: achievements: • HQ measures complete • Organization structure implemented • >50% of headcount targets met • High engagement from organiza
Slide 65: Performance Materials
PERFORMANCE (OU materiacs DARREK
Slide 66: Liquid crystals are clearly the dominant display technology
Liquid crystals are clearly the dominant display technology Market share by display technology Rationale for LCD leadership Relative display For consumers: surface area 1% • Price 100% 6% • Thinner frames 21% • Higher resolution in all sizes 80% • Proven track record of extreme reliability 6% For ma
Slide 67: Our leading OLED business is well set to exploit display market opportunities
Our leading OLED business is well set to exploit display market opportunities Market position Solution provider Among top 3 OLED material provider Merck Ambition Supplier of all OLED stack layers Unrivaled experience and expertise in displays Excellence in vapor & printable materials Long
Slide 68: Liquid crystals offer a variety of opportunities
Liquid crystals OFFER a variety of opportunities 2 4 6 1. Adaptive lighting for 3 5 automotive 2. Adaptive lighting for architecture 3. Smart antenna 4. Liquid crystal windows for 1 architecture 5. Holography 6. Free form LCD 68 Totals may not add up due to rounding
Slide 69: Strong position to benefit from technological advances and market trends
Merck has a strong position and will benefit further from complex technological advances and underlying market trends Market drivers and technological trends Feature sizes develop as predicted by Moore‘s law Miniaturization: Devices are becoming smaller with better performance Need for enabling ma
Slide 70: Financial Overview
FINANCIAL OVERVIEW OS DARREK
Slide 71: Organic growth in all regions
Organic growth in all regions Regional breakdown of net sales [€ m] Regional organic development Europe +3.0% • Europe moderately growing as strong org. performance of Life Science outweighs competitive pressure on Rebif 31% • North America continues to benefit from competitive situation for Fertili
Slide 72: Seamless Sigma integration and organic growth drive EBITDA pre
Seamless Sigma integration and organic growth drive EBITDA pre Q4 2016 YoY net sales • Solid organic growth of Healthcare driven by strong Fertility, Xalkori commissions and Organic Currency Portfolio Total stable Rebif sales, offsetting softer Erbitux Healthcare 4.2% -1.0% -1.5% 1.7% • Life Science
Slide 73: Q4 2016: Overview
Q4 2016: Overview Key figures Comments [€m] Q4 2015 Q4 2016 Δ • EBITDA pre increase driven by Sigma, Net sales 3,464 3,830 10.6% end of Rebif commission expenses and higher royalties, offsetting higher R&D EBITDA pre 933 1,075 15.1% • EPS pre up due to EBITDA pre increase Margin (in % of net sales)
Slide 74: Healthcare: Solid organic growth and pick-up of pipeline investments
Healthcare: Solid organic growth and pick-up of pipeline investments Healthcare P&L Comments [€m] Q4 2015 Q4 2016 • Rebif stable, volume erosion in EU due to competition is outweighed by U.S. pricing and higher U.S. year-end demand due to pharmacy stocking Net sales 1,737 1,766 • Moderate organic de
Slide 75: Healthcare organic growth by franchise/product
Healthcare organic growth by franchise/product Q4 2016 organic sales growth [%] FY 2016 organic sales growth [%] by key product [€ m] by key product [€ m] Organic Organic 441 1,741 +1% -2% 440 1,798 222 880 -5% +1% 237 899 Consumer 214 +6% Consumer 860 +3% Health 207 Health 905 175 -1% 753 +12% 177
Slide 76: Rebif: Relief in the U.S. – competitive ramp-up in Europe ongoing
Rebif: Relief in the U.S. – competitive ramp-up in Europe ongoing Rebif sales evolution Rebif performance North America Q4 drivers • Rebif sales of €441 m in Q4 2016 [€ m] reflect stable organic sales amid slight +11.4% org. Price negative FX effects mainly from LatAm 300 Price increase increase P
Slide 77: Erbitux: A challenging market environment
Erbitux: A challenging market environment Erbitux sales by region Erbitux performance -5.4% Q4 YoY • Sales decrease to €222m due to [€ m] organic growth moderate organic decline and FX 250 headwinds mainly from LatAm 15.5% • Europe organically lower in ongoing 200 tough environment (price & competit
Slide 78: Solid organic growth in Fertility, General Medicine and Endocrinology
Solid organic growth in Fertility, General Medicine and Endocrinology Sales evolution Q4 drivers Fertility [€ m] • Fertility shows ongoing growth 300 especially in the U.S. and China 260 Organic 220 • Gonal-f flat as growth in the U.S. is 6.1% org. 180 offset by slight uptake of biosimilars in Q4 20
Slide 79: Life Science: Record sales quarter amid tough comparables
Life Science: Record sales quarter amid tough comparables Life Science P&L Comments [€m] Q4 2015 Q4 2016 • Process Solutions growth driven by single-use products and services business, however some customer orders delayed Net sales 1,085 1,441 -324 -458 • Good demand from EU and U.S. pharma for biom
Slide 80: Performance Materials: Resilient profitability despite tougher LC environment
Performance Materials: Resilient profitability despite tougher LC environment Performance Materials P&L Comments [€m] Q4 2015 Q4 2016 • 2016 display industry destocking still muting Liquid Crystals amid first signs of a normalization of market shares Net sales 642 623 -54 -57 • Innovative UB-FFS tec
Slide 81: Reported figures reflect Sigma acquisition
Reported figures reflect Sigma acquisition Reported results Comments [€m] Q4 2015 Q4 2016 Δ • EBIT reflects increased EBITDA pre EBIT 298 405 36.0% amid integration costs and Sigma D&A Financial result -134 -70 -47.8% • Financial result contains lower Sigma financing costs; LY included charges Profi
Slide 82: Balance sheet – focus on rapid deleveraging
Balance sheet – focus on rapid deleveraging Assets [€ bn] Liabilities [€ bn] 38.1 38.3 38.3 38.1 1.1 Cash & marketable securities 1.1 2.7 2.9 Receivables 2.6 2.6 14.1 12.9 Net equity Inventories 25.0 Intangible assets 25.4 12.6 13.7 Financial debt 2.0 1.9 Payables 2.3 1.8 Property, plant & equipment
Slide 83: Well-balanced maturity profile
Well-balanced maturity profile reflects capital market transactions related to Sigma-Aldrich Maturity profile as of Dec. 31, 2016 2.4% 4.5% Coupon 2.95% [€ m/US $] 750 1.375% 3.25% L+35bps E+23bps 4.25% 2.625% 0.75% 1,000 250 70 1,600 1,350 3.375% 1.7% 1,000 700 800 400 550 500 2017 2018 2019 2020 2
Slide 84: High EBITDA pre drives strong operating cash flow
High EBITDA pre drives strong operating cash flow Q4 2016 – cash flow statement Cash flow drivers [€m] Q4 2015 Q4 2016 Δ • D&A increases due to Sigma, LY contains Profit after tax 127 265 138 evofosfamide impairment D&A 505 548 43 • Changes in provisions last year mainly reflect provision build-up f
Slide 85: Exceptionals in Q4 2016
Exceptionals in Q4 2016 Exceptionals in EBIT [€m] Q4 2015 Q4 2016 Exceptionals thereof D&A Exceptionals thereof D&A Healthcare 90 89 20 0 Life Science 111 1 93 27 Performance Materials 6 0 25 16 Corporate & Other 13 0 27 1 Total 220 89 165 44 85 Totals may not add up due to rounding
Slide 86: Financial calendar
Financial calendar Date Event April 28, 2017 Annual General Meeting May 18, 2017 Q1 2017 Earnings release August 3, 2017 Q2 2017 Earnings release November 9, 2017 Q3 2017 Earnings release 86
Slide 87: Investor Relations contacts
CONSTANTIN FEST SVENJA BUNDSCHUH ALESSANDRA HEINZ Head of Investor Relations Assistant Investor Relations Assistant Investor Relations +49 6151 72-5271 +49 6151 72-3744 +49 6151 72-3321 [email protected] [email protected] [email protected] ANNETT WEBER NILS V