Merck KGaA · XETR:MRK
Merck KGaA — Merck KGaA, Darmstadt, Germany — Investor Day (September 2021)
21 slides from Merck KGaA's investor day presentation, Sep 9, 2021
Slide 1: Financial perspective
Financial perspective Marcus Kuhnert, CFO 2nd Virtual CMD – September 9, 2021
Slide 2: Disclaimer
Disclaimer Publication of Merck KGaA, Darmstadt, Germany. In the United States and Canada the group of companies affiliated with Merck KGaA, Darmstadt, Germany operates under individual business names (EMD Serono, Millipore Sigma, EMD Performance Materials). To reflect such fact and to avoid any mis
Slide 3: Agenda: Financial perspective
Agenda: Financial perspective 01 Capital allocation & portfolio roles 02 Organizational agility & cost discipline 03 Outlook 04 Executive summary 3
Slide 4: Capital allocation & portfolio roles
01 Capital allocation & portfolio roles
Slide 5: Optimized capital allocation through distinct portfolio roles
Group Optimized capital allocation through distinct portfolio roles Roles determined by thorough analysis of Investment focus on businesses with greatest markets and competitive positions strengths and attractive opportunities Competitive position illustration ▪ Segmentation in planning units allows
Slide 6: Portfolio roles provide clear guidance to resource allocation
Group Portfolio roles provide clear guidance to resource allocation Simplified portfolio unit life cycle Invest for Manage Evaluate Growth Leadership for Cash ▪ Build/partner ▪ Back on track 1 ▪ Consider divestment Top-line growth Margin focus Transforma- tional M&A Bolt-on ( ) Invest (Capex/R&D) Hi
Slide 7: Financial flexibility fueling investment capacity
Group Financial flexibility fueling investment capacity Accelerated deleveraging to <2x net debt Abundant growth opportunities make strategic capital to EBITDA pre ratio enables allocation more important than ever unprecedented financial flexibility Investment € bn share ▪ Strong operating cash flow
Slide 8: Organizational agility & cost discipline
02 organizational agility & cost discipline
Slide 9: Organizational agility part of DNA and further reinforced with each successful transformation
Organizational agility part of DNA and further reinforced with each successful transformation Just like people, processes & systems are continuously improving … Proven track record Continuous simplification of organizational agility & harmonization with global scope Transformation programs Operating
Slide 10: MBS: Leveraging organizational agility
MBS Leveraging organizational agility Efficiency €80 m Permanent cost savings since 2016 Continuously gains 95% achieved by the end of 2021 expanding service delivery scope… 22% Personnel cost reduction in Group functions* 900+ Roles Global service shifted to shared service centers experts Employee
Slide 11: Sustainable culture of cost consciousness fueling efficient growth
Group Sustainable culture of cost consciousness fueling efficient growth Permanent cost discipline Fully integrated into part of DNA organization Various ongoing, successful initiatives ✓ Cost consciousness translated into targeted at primary spend processes & systems ✓ Biggest cost items in permane
Slide 12: Outlook
03 outlook
Slide 13: Continued growth in H2 2021 despite tough comps in LS
Group Continued growth in H2 2021 despite tough comps in LS Expected EBITDA pre development in 20211 Drivers of H2 development [in € m YoY] illustration ▪ Group-wide: slower growth compared to H1 2021 due to heavy COVID-19 impact on H1 2020 and considerably tougher comps in H2 from additional Life S
Slide 14: Clear set of tasks to enable our 2030 ESG goals
Group Clear set of tasks to enable our 2030 ESG goals Tasks Development In place Results and next steps Analysis of requirements: Strategy, Ongoing due to developing field of ESG business, regulation, stakeholders stakeholder expectations and regulation Build effective data platform for Feed in inte
Slide 15: Expanding KPIs to monitor and steer sustainability comprehensively
Group Expanding KPIs to monitor and steer sustainability comprehensively Target Exemplary KPIs to be implemented in 2021 1 # of people positively impacted by our technologies/products Our sustainability ambition is Human Progress % of new patent families with positive sustainability impact integrate
Slide 16: Life Science: Strong growth and improved mid-term outlook
Life Science Strong growth and improved mid-term outlook Life Science mid-term sales outlook Drivers of strong mid-term outlook [in € m] ▪ LS-wide: Above-market performance with continued positive YoY growth rates despite expected fading 7 to 10% CAGR COVID-19 demand1 Research ▪ Process: Driving ~80
Slide 17: Healthcare: Growth driven primarily by innovation
Healthcare Growth driven primarily by innovation, augmenting a solid established portfolio foundation Mid single-digit Positioned to accelerate CAGR science & technology leadership contribute to Profitable sales growth above global ~75% of growth pharmaceutical market (4.6% across TAs until 2025)1 N
Slide 18: Electronics: Shifting gears from transformation to growth execution
Electronics Shifting gears from transformation to growth execution From building a platform… …to executing on growth Successful “Bright Future” transformation 3 to 6% CAGR ▪ Superior business composition ~80% of 1 ▪ ~10 equally sized, differentiated tech platforms growth ▪ Wider customer base than e
Slide 19: Executive Summary
04 Executive Summary
Slide 20: Executive Summary
Executive Summary Finance priorities to accelerate science & tech leadership starting from a position of strength Delivering promised growth Leveraging Executing clearly organizational agility defined Enterprise Driving focused & & cost discipline Portfolio Unit roles disciplined capital allocation
Slide 21: Investor Relations contacts
CONSTANTIN FEST SVENJA DJAVAHERI SARA HOFMANN 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] ILJA DOERING GUNNAR ROMER AMELIE
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