Merck KGaA · XETR:MRK
Merck KGaA — Merck KGaA, Darmstadt, Germany — Non-Deal Roadshow (May 2017)
88 slides from Merck KGaA's roadshow presentation, May 2017
Slide 1: Merck KGaA, Darmstadt, Germany – Q1 2017 Roadshow
MERCK KGAA, DARMSTADT, GERMANY – Q1 2017 ROADSHOW Investor Relations May 2017
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: Disclaimer: Forward-Looking Statements
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 4: 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 4
Slide 5: Business Overview
BUSINESS OVERVIEW
Slide 6: Portfolio of three high-tech businesses
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 research &
Slide 7: Strong businesses with attractive margins
Group Strong businesses with attractive margins % of sales Margin1 % of EBITDA pre 46% 31.0% 43% FY 2016 FY 2016 Sales: EBITDA pre2: €15,024 m €4,490 m 29.2% 34% 38% 23% 16% 44.1% Healthcare Life Science Performance Materials 1EBITDA pre margin in % of net sales; 2Including Corporate/Others (-€396 m
Slide 8: Transforming the Company
TRANSFORMING THE (DZ company Sa aan
Slide 9: Strategic roadmap 2016-2022
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 Leade
Slide 10: We have added scale and strengthened portfolio attractiveness
Group We have added scale and strengthened the attractiveness of our 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 Laborat
Slide 11: Profitability improved fundamentally
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 7,402
Slide 12: We have created three leading businesses
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 prese
Slide 13: Clear set of priority goals to be realized by 2018
Group Clear set of priority goals to be realized by 2018 Performance Healthcare Life Science Materials ~43% ~34% ~23% EBITDA EBITDA EBITDA pre* pre* pre* Maximize growth of existing Focus on seamless integration Drive innovation and franchises and deliver cost synergies technology leadership a
Slide 14: Healthcare – Funding for Success
HEALTHCARE – FUNDING FOR SUCCESS
Slide 15: Healthcare is set to deliver on promising pipeline candidates
Healthcare Healthcare is set to deliver on promising pipeline candidates At least stable existing business 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&D funding in our foc
Slide 16: 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 23 quarter Ø ~4% org. for 23 growth, % 7% consecutive 5% 5% 5% 4% 5% 4% 4% 4% 4% 3% quarters 2% 2% 2% 3% 1% 0.3% …2012 2013 2014 2015 2016 2017… Qualitative
Slide 17: 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 ~€150 – 200m higher R&D costs in 2017 vs. 2016 R&D spending Avelumab Main moving par
Slide 18: Increasing R&D productivity with focus on 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) DNA-Pki / ATRi M7824/TGF-b trap B
Slide 19: Life Science – Focusing on Profitable Growth
LIFE SCIENCE – FOCUSING ON PROFITABLE GROWTH
Slide 20: 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 21: 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 22: Above-market growth enhanced by top-line synergies
Life Science Above-market growth to be enhanced by top-line synergies Merck KGaA, Darmstadt, Germany 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 2
Slide 23: Synergy upgrade driven by fast 2016 execution
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 status (for 2016) +20 • Faster implementation of synergy measures in all areas • 2016 total cost synergies of ~€105 m +15 • Integration c
Slide 24: 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 FY 2016 Above industry margin levels Profitability champion including synergies* Applied Solutions Research Solutions Mid single digit growth Low single digit growth Company A 27% 36% Millipore Sigma SIAL MM Com
Slide 25: Performance Materials – Expanding Leadership and Innovation
PERFORMANCE MATERIALS – EXPANDING LEADERSHIP AND INNOVATION
Slide 26: 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 27: 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 28: 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 Integrated Circuit business growi
Slide 29: 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 Display market opportunities continue to evolve Macroeconomics and electronics remain buoyant USD bn 170 Global consumer electronics market expected to Transparent di
Slide 30: Executive Summary and Guidance
EXECUTIVE SUMMARY AND GUIDANCE
Slide 31: We are well on track to deliver on our promises
Group We are well on track to deliver on our promises 1 Net debt reduced by ~€1.4 bn Group Strict financial discipline supports rating Important Base business growing milestones Healthcare 2 avelumab indications launched reached to deliver on our Sigma-Aldrich synergies raised and well on track prom
Slide 32: Clear financial priorities for the next two years
Group We have 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) Dividend polic
Slide 33: Full-year 2017 guidance
Full-year 2017 guidance Net sales: ~ €15.5 – 16.0 bn EBITDA pre: ~ €4,400 – 4,600 m EPS pre: ~ €6.15 – 6.50 33
Slide 34: Slide 34
Slide 35: Appendix
Appendix Guidance details Healthcare Life Science Performance Materials Financial details 35
Slide 36: Guidance Details
GUIDANCE DETAILS
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 decline • Ongoing organic Rebif decline market, driven by Process Solutions • Volume increases in all businesses • Other
Slide 38: Additional financial guidance 2017
Additional financial guidance 2017 Further financial details Corporate & Other EBITDA pre ~ -€350 – -400m Interest result ~ -€250 – -260 m Effective tax rate ~ 23% to 25% Capex on PPE ~ €850 – 900 m 2017 hedge ratio ~60% 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: Cost base in strong currencies and hedging losses 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 for 2016, reflecting 19.3% of EPS pre 1.20 • Dividend development in line with business performance and earnings 1.05 progression 1.00 0.95 0.85 • Dividend yield2 of 1.21% 0.75 2011 2012 2013
Slide 42: 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
HEALTHCARE
Slide 44: Portfolio management 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: Maximizing Healthcare's existing franchises
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
Clinical pipeline Phase I Phase II Phase III Registration M2698 – p70S6K & Akt inhibitor Tepotinib Avelumab – Anti-PD-L1 mAb Cladribine4 Tablets – Solid tumors c-Met kinase inhibitor Non-small cell lung cancer 1L1 Lymphocyte targeting agent M3814 – DNA-PK inhibitor Non-small cell lung cancer Aveluma
Slide 47: Avelumab plays in attractive and differentiated niches
Avelumab plays predominantly in attractive and differentiated niches avelumab NSCLC Number of trials per indication Melanoma Gastric/Esophageal Head & Neck RCC CRC Pancreas Breast Bladder NHL Ovarian Glioblastoma HL Prostate SCLC Multiple Myeloma AML Liver / HCC Mesothelioma CLL MCC Market size in 2
Slide 48: Avelumab differentiation strategy by 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 for avelumab in metastatic Merkel cell carcinoma
Clinical results support avelumab as 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) – • 9.1% com
Slide 51: For avelumab, combinations will drive differentiation
For Avelumab, combinations will drive differentiation strategy 1 • Phase III: Ovarian 1L & Plat. Res. Ref. (Avelumab + Chemotherapy) Combinations • Phase III: Renal 1L (Avelumab + Inlyta) • Phase III: L/A Head and Neck (Avelumab + Chemoradiation) Monotherapy 2 • Phase I: DLBCL (Avelumab + various ag
Slide 52: Cladribine tablets – MAA accepted by EMA
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 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: Key ASCO abstracts at a glance
Key ASCO abstracts at a glance (two oral presentations) • Initial results from a cohort of chemotherapy-naïve pts with mMCC (ongoing study) MCC (1L) • Manageable safety profile, consistent with findings for 2L+ cohort • Unconfirmed ORR: 64.0% (≥6 weeks follow-up) / Confirmed ORR: 56.3% (≥3 months fo
Slide 57: Newsflow: Upcoming pipeline catalysts
Newsflow: Upcoming pipeline catalysts Avelumab Expected EMA decision (MCC) H2 2017 BTK inhibitor (RA) Phase IIa signal confirmation1 Q2 2017 M7824 (anti PD-L1 – TGF-beta trap) Phase I interim data1 mid 2017 Cladribine tablets Expected EMA decision Q3 2017 Sprifermin Final Phase II data readout1 Q3 2
Slide 58: 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 59: Life Science
LIFE SCIENCE
Slide 60: Balanced portfolio and geographic presence
A balanced portfolio and geographic presence Sales by business unit Sales by region Applied Solutions Research Solutions North America Europe 36% 36% 27% FY 2016 sales: 35% FY 2016 FY 2016 €5.7 bn 37% 23% 4% Asia-Pacific 2% Process Solutions Middle East Africa Latin America 60
Slide 61: 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 62: Success driven by portfolio breadth and customer-centric approach
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 63: 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 64: #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 65: 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 66: Performance Materials
PERFORMANCE MATERIALS
Slide 67: Liquid crystals are 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 68: Our leading OLED business is well set for display opportunities
Our leading OLED business is well set to exploit display market opportunities Market position Solution provider Among top 3 OLED material provider our Ambition Supplier of all OLED stack layers Unrivaled experience and expertise in displays Excellence in vapor & printable materials Long &
Slide 69: 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 69 Totals may not add up due to rounding
Slide 70: Strong position benefiting from technological advances and market trends
We have 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 mate
Slide 71: Financial Overview
FINANCIAL OVERVIEW
Slide 72: Organic growth driven by APAC, LATAM and MEA
Organic growth driven by APAC, LATAM and MEA Regional breakdown of net sales [€ m] Regional organic development Europe -0.4% • Slight decline in Europe reflects competition org. for Rebif, Erbitux and Gonal-f, mitigated by solid demand in Life Science 31% • North America lower as growth in Life Scie
Slide 73: Healthcare and Life Science fuel increase in EBITDA pre
Healthcare and Life Science fuel increase in EBITDA pre Q1 2017 YoY net sales • Healthcare reflects strong growth in General Organic Currency Portfolio Total Medicine, especially Glucophage China Healthcare 4.4% 2.0% -1.0% 5.4% • Organic performance in Life Science driven by all business units Life
Slide 74: Q1 2017: Overview
Q1 2017: Overview Key figures Comments [€m] Q1 2016 Q1 2017 Δ • EBITDA pre & margin increase mainly Net sales 3,665 3,861 5.3% driven by royalty income swap 1,084 1,240 14.5% • Strong EPS pre growth due to higher EBITDA pre Margin (in % of net sales) 29.6% 32.1% EBITDA pre 1.54 1.80 16.9% • Operatin
Slide 75: Healthcare: Solid base business and one-time gains
Healthcare: Solid base business and one-time gains supporting margin Healthcare P&L Comments [€m] Q1 2016 Q1 2017 • Organic growth supported by Glucophage repatriation in China Net sales 1,646 1,735 • Rebif with ongoing volume and price declines in Europe outweighing U.S. pricing and contribution fr
Slide 76: Healthcare organic growth by franchise/product
Healthcare organic growth by franchise/product Q1 2017 organic sales growth [%] by key franchise/products [€ m] Organic 415 -4% 422 Consumer 230 +5% Health 215 218 +4% 207 171 -10% 187 166 +74% 94 105 -2% 107 88 +22% 70 Q1 2017 Q1 2016 76
Slide 77: Rebif: Relief in the U.S., competitive ramp-up in Europe
Rebif: Relief in the U.S. – competitive ramp-up in Europe ongoing Rebif sales evolution Q1 2017 Rebif performance North America Q1 drivers • Rebif sales of €415 m in Q1 2017 [€ m] reflect organic decline of -4.0% and Price -4.6% org. increase Price positive FX effects from the U.S. 300 increase Pric
Slide 78: Erbitux: A challenging market environment
Erbitux: A challenging market environment Erbitux sales by region Q1 2017 Erbitux performance +4.3% Q1 YoY • Sales increase to €218m due to [€ m] organic growth solid volume development in growth 250 markets and slight FX tailwinds • Europe impacted by competition +39.3% 200 and shrinking market siz
Slide 79: Strong organic growth of General Medicine
Strong organic growth of General Medicine driven by Glucophage repatriation Sales evolution Q1 2017 organic drivers Fertility [€ m] • Fertility slightly lower, mainly due to 297 262 269 266 Gonal-f facing tough comps and 300 264 200 Organic competition from biosimilars in Europe 100 -0.9% 0 • Other
Slide 80: Life Science: Synergy realization drives margin progression
Life Science: Ongoing synergy realization drives margin progression Life Science P&L Comments [€m] Q1 2016 Q1 2017 • Process Solutions benefits from robust demand for single-use and upstream, but against tough comps & soft start at some larger accounts Net sales 1,397 1,481 - 421 -449 • Applied Solu
Slide 81: Performance Materials: Top line recovery despite declining Liquid Crystals
Performance Materials: Top line recovery despite still declining Liquid Crystals Performance Materials P&L Comments [€m] 622 Q1 2016 Q1 2017 • Organic growth of Integrated Circuit Materials, Pigments and OLED mitigate LC softness Net sales 622 645 -58 -62 • Liquid Crystals impacted by further market
Slide 82: Reported figures reflect solid business and royalty income swap
Reported figures reflect solid business and royalty income swap Reported results Comments [€m] Q1 2016 Q1 2017 Δ • EBIT decline reflects income from EBIT 849 755 -11.1% Kuvan sale LY Financial result -68 -71 3.6% • Stable financial result – deleveraging compensated by higher interest rates Profit be
Slide 83: Balance sheet – focus on rapid deleveraging
Balance sheet – focus on rapid deleveraging Assets [€ bn] Liabilities [€ bn] 38.3 38.4 38.4 38.3 1.1 Cash & marketable securities 1.1 2.9 3.1 Receivables 2.6 2.7 14.5 14.1 Net equity Inventories Intangible assets 25.0 24.7 12.3 12.6 Financial debt 1.9 2.0 Payables 2.3 2.3 Property, plant & equipment
Slide 84: Well-balanced maturity profile
Well-balanced maturity profile reflects capital market transactions related to Sigma-Aldrich Maturity profile as of March 30, 2017 2.4% 4.5% Coupon 2.95% [€ m/US $] 750 1.375% 3.25% 4.25% 2.625% 0.75% 1,000 E+23bps 70 1,600 1,350 3.375% 1.7% 1,000 700 800 400 550 500 2017 2018 2019 2020 2021 2022 20
Slide 85: Strong operating cash flow from royalty swap and tax effects
Strong operating cash flow benefits from royalty swap and tax effects Q1 2017 – cash flow statement Cash flow drivers [€m] Q1 2016 Q1 2017 Δ • LY profit after tax includes gain from Profit after tax 593 523 -70 Kuvan sale, which is neutralized in other operating activities D&A 433 448 15 • Changes i
Slide 86: Exceptionals in Q1 2017
Exceptionals in Q1 2017 Exceptionals in EBIT [€m] Q1 2016 Q1 2017 Exceptionals thereof D&A Exceptionals thereof D&A Healthcare -321 0 4 1 Life Science 109 0 16 0 Performance Materials 6 0 7 0 Corporate & Other 7 0 15 3 Total -198 0 41 4 86 Totals may not add up due to rounding
Slide 87: Financial calendar
Financial calendar Date Event June 12, 2017 R&D Update Call August 3, 2017 Q2 2017 Earnings release November 9, 2017 Q3 2017 Earnings release March 8, 2018 Q4 2017 Earnings release April 27, 2018 Annual General Meeting May 15, 2018 Q1 2018 Earnings release 87
Slide 88: 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 VON BOT
Merck KGaA, Darmstadt, Germany — Non-Deal Roadshow (May 2017) on 6ix