Merck KGaA · XETR:MRK
Merck KGaA — Merck KGaA, Darmstadt, Germany — Q4 2024 Earnings Presentation
98 slides from Merck KGaA's earnings presentation, March 2025
Slide 1: Q4 24 Roadshow
Merck KGaA, Darmstadt, Germany Q4 24 Roadshow Investor Relations March 2025
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: Vibrant Science and Technology Company
Group is a VIBRANT SCIENCE AND TECHNOLOGY COMPANY Life Science Diversified industry leader Healthcare Global specialty innovator Electronics Ecosystem relevant portfolio Sustainability / ESG Innovating to elevate humanity 3 Updated October 2024
Slide 4: Ready for compelling structural growth
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Ready for compelling structural growth Reacceleration of value compounding building on distinct and highly attractive end-market trends Multiple near-term catalysts t
Slide 5: Three sectors focusing on highly innovative end-markets
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Three sectors focusing on highly innovative end-markets Life Science Healthcare Electronics Diversified industry Global specialty Ecosystem relevant leader innovator
Slide 6: Added scale and strengthened attractiveness of portfolio
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Added scale and strengthened attractiveness of portfolio Long-term growth trajectory Inorganic volume4 Acquisition of Versum Materials 70% 25 Acquisition of Serono (2
Slide 7: Proven track record as a Value Compounder
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Company has a proven track record as a Value Compounder Compounding Growth over 15 years Demonstrating the critical ingredients for Value Compounding Innovation and l
Slide 8: Reacceleration of value compounding
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Reacceleration of value compounding Track record1 FY23 Mid Term FY24 5% -2% 2% 2 Organic Growth CAGR org. org. restoring growth rate Expand EBITDA pre ~29% 28% 29% ma
Slide 9: Poised to reach new sales heights
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Poised to reach new sales heights Life Science drives org. sales growth in post-COVID world 1 • Vast majority of bioprocessing customers have reached target inventory
Slide 10: Attractive growth ambitions
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Attractive growth ambitions 7-9% mid-term CAGR Market returns to +5-7% growth, China at muted level, but with above average growth mid term Life Science Focus on
Slide 11: Innovating to spark future growth across the Group
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Innovating to spark future growth across the Group Future Innovations (long term) Tomorrow’s Growth Aligned to customer tech roadmaps and unmet patient needs: (Mid- t
Slide 12: Optimized capital allocation through distinct portfolio roles
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Optimized capital allocation through distinct portfolio roles Roles determined by thorough analysis of Investment focus on businesses with greatest markets and compet
Slide 13: Plan delivered - ready for lower capital intensity
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Plan delivered - ready for a new phase of lower capital intensity Enhanced global footprint in place by end of 2025… 8-9% 6-7% 5-6% ~4% 2009-2015 2016-2018 2019-2022
Slide 14: Driving enhanced FCF conversion
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Driving enhanced FCF conversion FCF as % of sales EBITDA pre margin expansion to improve with higher capacity utilization ~14% ~13% Drive incremental gains from proce
Slide 15: Track record in fast deleveraging
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Track record in fast deleveraging enabled by high-quality cash flow 4.0 • Resilient sources of cash, especially PS, SLS and Established Portfolio (HC) 3.5 • Solid inv
Slide 16: Rigorous application of the Group M&A playbook
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Rigorous application of the Group M&A playbook Clear Financial criteria Financial Framework 1 2 M&A supports profitable growth strategy, Strong financial capacity
Slide 17: Leveraging growth in the attractive Life Science market
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Life Science Leveraging growth in the attractive Life Science market End Market Growth Positioned for Key Megatrends Leadership, Innovation and Growth Capturing growth Conf
Slide 18: Above market mid-term growth outlook
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Above market mid-term growth outlook on business mix, portfolio Process Solutions Diversifiedindustry Diversified Diversified industry industry 7 to 9% • Strengthening our
Slide 19: Mid-term growth outlooks remain favorable across segments
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Market Mid-term growth outlooks remain favorable across segments Life Science Market 1 2024: ~€220 bn, mid-term CAGR 5 to 7% Market segment Customer Geography (growth acros
Slide 20: Organizational structure provides customer and portfolio focus
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Business Sector Overview Organizational structure provides customer and portfolio focus Process Solutions (PS) Life Science Services (LSS) Science & Lab Solutions (SLS) Bes
Slide 21: Focus on our strengths: Diversified industry leader
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Life Science Enabling tomorrow’s medical breakthroughs Focus on our strengths Diversified industry leader Leveraging our strong positions within Academia, Biotech and ▪ Sol
Slide 22: Process Solutions: building a winning portfolio
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Process Solutions Building a winning portfolio for sustainable growth and lasting impact to our customers Life Science Highlights Strategy Differentiated by Innovation ▪ Ta
Slide 23: Process Solutions overview: comprehensive product portfolio
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Process Solutions - Overview Comprehensive product portfolio and diversified customer base One PS portfolio Snapshot Addressing full value chain from upstream to drug produ
Slide 24: Portfolio meeting customer needs across bioprocessing continuum
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Process Solutions Portfolio meeting customer needs across the entire bioprocessing continuum Market segment Positioning Process Process Solutions is strongly positioned S
Slide 25: Life Science Services: focus on novel modalities
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Life Science Services Focusing efforts and investments on attractive and fast-growing novel modalities to create patient benefit and client value Life Science Focus areas H
Slide 26: Science & Lab Solutions: durable growth
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Science & Lab Solutions Capturing durable growth across diverse market segments Life Science Focus areas Illustrative Highlights Strategy Sustainability Digitization Enabli
Slide 27: All business units contributing to mid-term outlook
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Outlook All business units contributing to attractive mid-term outlook 1 Sales split Mid-term outlook Key differentiators • Innovation leadership: factory of the future (Bi
Slide 28: Committed to innovation, building on resilient portfolio
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Healthcare Committed to innovation, building on top of a resilient portfolio End Market Growth Positioned for Key Megatrends Leadership, Innovation and Growth Global Pharma
Slide 29: Resilient product portfolio as base for growth
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Healthcare Resilient product portfolio as base for attractive LT growth potential Healthcare sales, illustrational graph applying CAGR based growth rates MSD growth slight
Slide 30: Established Franchises – CM&E
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Established Franchises – CM&E Diversified leadership positions, growth driven by developing markets CM&E Sales €2.8bn in FY 2023 (~4% CAGR ’18-23)6 Position Sales by Core B
Slide 31: Established Franchises – Fertility
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Established Franchises - Fertility Expanding on our leadership position Global Gonadotropin market in € bn1 world’s most prescribed r-hFSH treatment2 +11% , the only recomb
Slide 32: Innovative Franchises – Commercialized assets
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Innovative Franchises – Commercialized assets Competitive pressures moderated by Erbitux + staggered Mavenclad LOE mCRC, SCCHN • Leading in mCRC continuum of care RMS • Bac
Slide 33: Innovative Franchises – R&D N&I
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Innovative Franchises – R&D N&I Regaining momentum in N&I innovation, with careful risk control Cladribine capsules Enpatoran Immune reconstitution therapy Selective and po
Slide 34: R&D Oncology + External Innovation
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Innovative Franchises – R&D Oncology + External Innovation Executing early oncology strategy, with de-risked late-stage Pimicotinib Early- and mid- stage assets Highly sele
Slide 35: Company pipeline
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Company pipeline March 06, 2025 Healthcare pipeline Phase 1 Phase 2 Phase 3 Registration pimicotinib (CSF-1R inhibitor) Study met the primary endpoint, Tenosynovial giant c
Slide 36: Healthcare catalysts
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Healthcare catalysts Q1 2025 Q2 2025 Q3 2025 Q4 2025 • SLE cohort: primary endpoint not met • Promising responses in pre-defined patient subgroups Enpatoran • Totality of d
Slide 37: Electronics: compounding growth as AI enabler
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Electronics Compounding growth faster as AI enabler with ecosystem relevance End Market Growth Positioned for Key Megatrends Leadership, Innovation and Growth Above market
Slide 38: Transformation complete: accelerating growth as pure-play
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Electronics Transformation complete: accelerating growth as a pure-play illustrative 5-9% growth1 3-6% growth5 2-3% growth5 beyond mid-term FY13 FY21 FY23 Mid-term → 0% sem
Slide 39: Critical enabler of the Semiconductor Ecosystem
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions Company is a critical enabler of the Semiconductor Ecosystem Materials, Delivery Equipment and Metrology & Inspection enable key process steps Key h
Slide 40: Company creates more customer value per wafer
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions Company creates more customer value per wafer 1) Miniaturization1: more 2) Vertical stacking creates 3) HI8 interconnect density and process steps2,
Slide 41: Strategic partner to customers with comprehensive portfolio
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductors Strategic partner to customers with comprehensive portfolio Resilient business model with partial semi cycle hedge Strategic partner to industry Materials +
Slide 42: Optronics: complexity and miniaturization driving growth areas
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Optronics Complexity and miniaturization needs driving growth areas Group to deploy Materials IntelligenceTM Semiconductor and light-based amid increasing complexity techno
Slide 43: Leveraging portfolio transition to enable 5% to 9% growth
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Leveraging portfolio transition to enable 5% to 9%8 growth CAGR 1 2 Sales split Mid-term outlook Business Split Fundamental growth drivers Semiconductor Materials ▪ Continu
Slide 44: Sustainable innovation drives future business growth
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Sustainable innovation drives future business growth Reducing the upstream footprint of products for customers More sustainable products Reducing impact with environmental
Slide 45: Three overall sustainability ambitions
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science We are committed to three overall sustainability ambitions 01 Partnering for 02 03 Dedicated to Reducing our sustainable business human progress ecological footprint impact
Slide 46: Clear metrics towards 2030 ambition
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Clear metrics to drive execution towards 2030 ambition Goal Metric 2024 (2023) Target 1 Percentage of newly published patent families with positive sustainability impact 34
Slide 47: Diverse human capital
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Diverse human capital: Thinking, talking, and leading differently Indicator Status Focus areas Aspirations 2024 (2023) Gender parity Gender Percentage of women in leadershi
Slide 48: Responsible use of natural resources
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Responsible use of natural resources Scope 1+2 GHG emissions: -50% 80% of purchased electricity from Circularity Rate4 of 70% absolute reduction by 20301,2,4 renewable sour
Slide 49: Full-year 2025 guidance
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Group Full-year 2025 guidance Net sales: Organic: +3% to +6% YoY FX: -1% to +2% YoY ~€21.5 – €22.9 bn EBITDA pre: Organic: +3% to +8% YoY FX: -2% to +1% YoY ~€6.1 – €6.6 bn
Slide 50: 2025 business sector guidance
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science 2025 business sector guidance1 Net sales EBITDA pre Life Science ▪ Organic: +2% to +7% YoY ▪ Organic:+2% to +9% YoY ▪ FX: 0% to +3% YoY ▪ FX: -1% to +2% YoY ▪ ~€9.1 bn to €
Slide 51: Additional financial guidance 2025
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Additional financial guidance 2025 Further financial details Corporate & Other EBITDA pre -€550 m to -€600 m Interest result2 ~ -€110 m to -€150 m Effective tax rate ~ 21%
Slide 52: Stable dividend signals confidence in future growth
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Stable dividend signals confidence in future growth Dividend1 development 2016 -2024 2024 dividend ▪ Resilient company performance supports stable dividend in FY24 2.20 2.2
Slide 53: Credit details
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Credit details Maturity profile as of December 31, 2024 Credit rating information Coupon [€m / $m] Last LT LT ST Rating Outlook 3.250% Rating Rating 0.125% Change A3 21.10.
Slide 54: Healthcare and Electronics drive return to profitable growth
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Healthcare and Electronics drive return to profitable growth FY YoY Net Sales FY YoY EBITDA pre Organic Currency Portfolio Total €5,879 m 6.9% €6,072 m Life Science -3.3% -
Slide 55: FY 2024: Overview
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science FY 2024: Overview Key figures Comments [€m] FY 2023 FY 2024 Δ ▪ Sales up +1% with organic growth overcompensating FX headwinds Net sales 20,993 21,156 0.8% ▪ Strong sales g
Slide 56: FY 2024: Reported figures
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science FY 2024: Reported figures Reported results Comments ▪ EBIT slightly up, driven by top-line and [€m] FY 2023 FY 2024 Δ margin expansion in both HC and EL; EBIT 3,609 3,645 1
Slide 57: Cash flow statement
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Cash flow statement FY 2024 – cash flow statement Cash flow drivers [€m] FY 2023 FY 2024 Δ ▪ Profit after tax slightly lower on higher Profit after tax 2,834 2,786 -48 taxe
Slide 58: Adjustments in FY 2024
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Adjustments in FY 2024 Adjustments in EBIT [€m] FY 2023 FY 2024 Adjustments thereof D&A Adjustments thereof D&A Life Science 122 34 220 86 Healthcare 8 10 134 160 Electroni
Slide 59: Process Solutions - Market
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Process Solutions - Market Participating in a structurally intact and attractively growing Biopharma market Novels driving growth Diversified customer base Process products
Slide 60: Process Solutions – Innovation
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Process Solutions – Innovation Enabling customers’ evolution towards Factory of the Future Today Future Customer goals mAbs: Templated process Facility of the Future Innova
Slide 61: Life Science Services – Overview
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Life Science Services – Overview Focus on novel modalities to provide unique value proposition to clients and propel future growth Capabilities Snapshot Serving customers a
Slide 62: SLS – Portfolio
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science SLS – Portfolio Broad portfolio consisting of five specialized portfolio units and franchises enabling a presence across workflows Chemistry Biology DxRm BioM Lab Water Ful
Slide 63: SLS – Customers & Value Chains
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science SLS – Customers & Value Chains Serving full value chains of diverse customer segments with key customers including global leaders in their fields Customer segments & value
Slide 64: SLS – Key Trends & Initiatives
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science SLS – Key Trends & Initiatives Addressing key industry & macroeconomic trends with innovative solutions and targeted investments Industry trends Macroeconomic trends Secula
Slide 65: Process Solutions: returning to growth
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Process Solutions: Returning to growth, highest in six quarters Sales development [€m] - org. growth [%] YoY 938 ▪ Org. sales rise with improving volumes on higher activity
Slide 66: Science & Lab Solutions: moderate YoY growth
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Science & Lab Solutions: Moderate YoY growth Sales development [€m] - org. growth [%] YoY 1,170 1,192 1,167 1,137 1,143 ▪ +3% org. sales growth year-over-year; excluding SA
Slide 67: Life Science Services: strongest quarter of year
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Life Science Services: strongest quarter of year, down against high comp Sales development [€m] - org. growth [%] YoY 220 ▪ Sales down against high comparable 194 199 ▪ Con
Slide 68: FY Life Science: accelerating QoQ growth in Q4
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science FY Life Science: Accelerating QoQ growth in Q4 improves YTD performance Life Science P&L Net sales bridge [€m] IFRS Pre €9,281 m 0.1% €8,916 m FY 2023 FY 2024 FY 2023 FY 20
Slide 69: Healthcare: solid growth in CM&E and Fertility
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Healthcare Solid growth in CM&E and Fertility, long-term growth led by innovation Mid-term growth drivers Global specialty • CM&E and Fertility portfolio as innovator resil
Slide 70: Pimicotinib - phase III asset with 2024 readout
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Oncology PIMICOTINIB DDRs ADCs ENPATORAN CLADRIBINE Pimicotinib - phase III asset with 2024 readout Pimicotinib1 (Novel, highly selective and potent inhibitor of CSF-1R) Ta
Slide 71: DNA damage response: tuvusertib and M9466
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science DNA damage response PIMICOTINIB DDRs ADCs ENPATORAN CLADRIBINE Key pillars of DDR strategy: tuvusertib and M9466 Tuvusertib M9466 ATRi PARP1 Differentiate through optimized
Slide 72: Tuvusertib monotherapy profile
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science DNA damage response PIMICOTINIB DDRs ADCs ENPATORAN CLADRIBINE Tuvusertib monotherapy profile enables combination potential Achieves strong target coverage Compares favorab
Slide 73: M9466: next-gen PARP1i
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science DNA damage response PIMICOTINIB DDRs ADCs ENPATORAN CLADRIBINE M9466: next-gen PARP1i key to realizing combination potential M9466: 2nd gen PARP inhibitor with trapping act
Slide 74: Group's ADC technology addresses limitations of first-gen ADCs
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Oncology - ADCs PIMICOTINIB DDRs ADCs ENPATORAN CLADRIBINE Group's ADC technology addresses the limitations of first-gen ADCs First generation ADCs Group’s ADC Platform U
Slide 75: Precemtabart tocentecan development program
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Oncology - ADCs PIMICOTINIB DDRs ADCs ENPATORAN CLADRIBINE Precemtabart tocentecan (M9140): Developing First-in-Class ADC in CEACAM5-positive tumors First-in-human and expa
Slide 76: Enhancing our position as a major ADC player
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Pre-clinical space PIMICOTINIB DDRs ADCs ENPATORAN CLADRIBINE Enhancing our position as a major ADC player ADC priorities Organic ADC portfolio growth in the next 3 years ▪
Slide 77: N&I - Enpatoran: targeted inhibition of lupus mediator
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science N&I - Enpatoran PIMICOTINIB DDRs ADCs ENPATORAN CLADRIBINE Targeted inhibition of important lupus mediator aiming for improved efficacy with low infection risk • For lupus
Slide 78: Enpatoran: expansion into myositis
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science N&I - Enpatoran PIMICOTINIB DDRs ADCs ENPATORAN CLADRIBINE Expansion into myositis, First-in-Class Potential Development Rationale Neptunia Study ▪ G7 prevalence of 100 – 1
Slide 79: Cladribine – going beyond multiple sclerosis
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science N&I - Cladribine PIMICOTINIB DDRs ADCs ENPATORAN CLADRIBINE Cladribine – going beyond multiple sclerosis s.c. Cladribine Open Label Study in Development Rationale MG ▪ Myas
Slide 80: FY Healthcare: strong growth across franchises
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science FY Healthcare: Strong growth supported across franchises Healthcare P&L Net sales bridge [€m] IFRS Pre €8,053 m 7.0% 0.0% €8,455 m -2.0% FY 2023 FY 2024 FY 2023 FY 2024 Net
Slide 81: Electronics: accelerating growth by enabling AI
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Electronics Accelerating growth by enabling AI and advanced nodes Semiconductors Ecosystem CAGR of 7% to 11% driven by +200 to relevant portfolio 5 to 9%1 +400bps2 growth a
Slide 82: Tech roadmap needs more powerful chips
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions Tech roadmap needs more powerful chips; powerful chips are driven by the ability to think (logic) and remember more (memory), faster Advanced logic
Slide 83: Enabling tech roadmaps with Materials Intelligence & Metrology
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions Enabling tech roadmaps with Materials IntelligenceTM & Metrology Tools Miniaturization: reaching the Vertical stacking and complexity: Heterogenous
Slide 84: Enabling AI and advanced nodes
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions Enabling AI and adv. nodes, outgrowing the wider Semi market AI segment outpaces the AI at the Edge will be the Faster growth in adv. nodes3,4, semi
Slide 85: Strategic partner to semiconductor manufacturers globally
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions MATERIALS DS&S R&D Services Metrology Strategic Partner to semiconductor manufacturers globally 2 Fab1 material market 4 Semiconductor +5.3% Materia
Slide 86: Comprehensive materials portfolio across relevant technologies
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions MATERIALS DS&S R&D Services Metrology Comprehensive materials portfolio across all relevant technologies Advanced materials mission Broad technology
Slide 87: Trusted player in delivery of hazardous materials
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions Materials DS&S R&D Services Metrology Trusted player in safe and reliable delivery of hazardous materials Highly synergistic business model providin
Slide 88: Innovation pipeline aligned to tech roadmap
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions Materials DS&S R&D SERVICES Metrology Innovation pipeline aligned to tech roadmap enables future growth Innovation focus on winning new Attractive p
Slide 89: Advanced metrology and inspection tools
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions Materials DS&S R&D Services METROLOGY Advanced metrology and inspection tools enable two key megatrends 1. Heterogenous Integration for AI & Advance
Slide 90: Vertical differentiation: integrated player
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions MATERIALS DS&S R&D SERVICES METROLOGY Company perfectly positioned as integrated player Electronics has four transformational Integrated Segment Pla
Slide 91: The local partner to global customers
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductors Solutions The local partner to global customers Global powerhouses driving semiconductor investment Smart localization strategy US CHIPS Act EU Chip Act inve
Slide 92: Semiconductor Solutions recovery pace tempers
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Semiconductor Solutions recovery pace tempers in the near-term Sales development [€m] - org. growth [%] YoY 691 660 665 ▪ Overall, continued org. sales growth 633 642 (+5%)
Slide 93: Electronics FY: strong AI-driven semiconductor materials growth
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Electronics FY: Strong AI-driven semiconductor materials growth Electronics P&L Net sales bridge [€m] IFRS Pre €3,659 m 4.6% 0.2% €3,785 m -1.4% FY 2023 FY 2024 FY 2023 FY
Slide 94: Company's ownership structure
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Company‘s ownership structure Shareholders E. Merck KG , Darmstadt, Germany of Merck KGaA , Darmstadt, Germany Partners‘ Meeting & Family Board ▪ Shareholders hold ~30% of
Slide 95: Changes for proposed compensation system from 2026
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Changes for the proposed compensation system from 2026 Current system (since 2021) New: 2026 compensation system Profit sharing: Profit sharing: ▪ 3-years performance perio
Slide 96: Transparency on sustainability progress
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science Transparency on sustainability progress following major standards Mandatory Annual Report Non-financial Compensation EU reporting incl. Corporate statement Report Taxonomy
Slide 97: External stakeholders assess our engagement
Life Science Group Healthcare Electronics ESG Guidance Appendix Life Group Healthcare Electronics ESG Guidance Appendix Science External stakeholders assess our engagement Improved 2025 Since 2022, Company is Company received a Since 2008, Company is part In the ISS corporate ESG1 receiving a MSCI E
Slide 98: Meet the team
FLORIAN SCHRAEDER NADJA GROSSCHMIDT SUSAN KUEHN eet the team Head of Investor Relations Assistant Investor Relations Assistant Investor Relations +49 6151 72-5271 +49 6151 72-3321 +49 6151 72-3744 [email protected] [email protected] [email protected] DATE EVENT March
Merck KGaA, Darmstadt, Germany — Q4 2024 Earnings Presentation on 6ix