WHoWHo

Weare

Founded in Darmstadt, Germany in 1668 by Friedrich Jacob Merck, we are the world’s oldest pharmaceutical and chemical company. Today, the Merck family remains the majority owner of the company.

Over the course of nearly 350 years, we have become a truly global company. Our approximately 50,000 employees work in 66 countries and are united by their passion for new ideas, the possibilities of technology, and the potential to make a diff erence in the world.

We are known as Merck internationally. In the United States and Canada, however, we operate as EMD Serono in the Biopharma business, as MilliporeSigma in the Life Science business, and as EMD Performance Materials in the materials business.

We live in a world of possibilities.

A world where exploration and discovery are celebrated. Our meticulous and research-driven businesses deliver diverse, high-quality products that enrich lives and enable us to share business success with our customers.

a pioneering companyThataDvances TecHNologies FoR LIFe

HealthcareFrom groundbreaking prescription medicines that treat conditions such as cancer and infertility to over-the-counter products for colds and pain, our work makes a diff erence to millions of lives around the world.

Life ScienceProviding scientists and engineers with best-in-class lab materials, technologies and services, we are dedicated to making research and biotech production simpler, faster and more successful.

Performance MaterialsDeveloping specialty chemicals for particularly demanding applications, we provide groundbreaking liquid crystals for displays, eff ect pigments for coatings and color cosmetics, and high-tech materials for the production of integrated circuits.

Across healthcare, life science and performance materials, we bring specialist and high-quality products to the world.

H E A LT H C A R E

We help to create, improve and prolong life – continuously working to make a lasting diff erence in patients’ lives.

Our portfolio includes medicines to treat cancer, multiple sclerosis, infertility, growth disorders, cardiovascular diseases, diabetes, and thyroid disorders.

H E A LT H C A R E

changinglives

We design and develop intelligent devices that provide ongoing care for patients beyond their treatment.

Our injection device and disease monitoring software make it possible for patients with multiple sclerosis to self-inject their medicine and monitor its administration. As a result, we help to make better use of their time with their neurologist.

We are leading the way in personalized medicine. With cancer, this precise approach uses biomarkers that match eff ective treatment to individual patients, predicting how the disease will progress and how they will respond to a treatment.

We support people at every stage of life – also when it comes to creating new life. Estimates show that we have helped bring more than two million babies into the world. As the global market leader in fertility treatments, we do what we do with passion – and we think further ahead. We have complemented our portfolio by fertility technologies, aiming to further increase the possibility of in vitro fertilization (IVF) success.

OncologyOur drug is a standard treatment in colorectal cancer as well as carcinoma of the head and neck.

Neurodegenerative DiseasesWe help to treat relapsing forms of multiple sclerosis (MS), one of the most common neurological diseases among young adults.

FertilityMore than two million babies have been born thanks to our fertility treatments.

CardioMetabolic CareWe off er the gold standard for type 2 diabetes.

Around 12 million patients per year are treated with our leading beta blocker.

Around 19 million patients benefi t from our widely used thyroid medicine every year.

Endocrinology Our products help children and adults with growth hormone defi ciencies.

We develop high-quality products that protect every member of your family so thatthey can enjoy healthier, happier lives every day.

Our over-the-counter brands are household names and can be found in pharmacies around the world.

H E A LT H C A R E

boostinghealth

Our trusted products protect and support people at every stage of life.

We were the fi rst company to develop Metafolin® – integral to Femibion®, a supplement to meet women’s changing needs during the exciting journey before, during and after pregnancy.

Our Bion® product has become the supplement of choice for multivitamins, and off ers everyday immune and energy support for the whole family. Our renowned Seven Seas® brand strengthensbrain function, sight and heart health with thebenefi ts of fi sh oils.

Our over-the-counter products have even been tried and tested on the moon! Nasivin®, our best-selling nasal spray, was included by NASA on the Apollo 11 mission in 1969 manned by Neil Armstrong and his team.

Nasivin®

Widely used cold treatment that clears the nose in 25 seconds and lasts for 12 hours.

Neurobion®

Global market leader in B vitamins for a healthy nervous system.

Bion®

Global market leader in probiotic vitamins off ering every day immune support for the whole family.

Seven Seas®

A trusted supplement around the world for strong joints and health protection.

Femibion®

A vital combination of folic acid, Metafolin® and other important vitamins for women before, during and after pregnancy.

Vivera®

A probiotic which accelerates the natural healing process after gastro-intestinal upset.

Floratil®Fast-acting probiotic diarrhea relief.

Apaisyl®Insect repellent and treatment for head lice.

Sangobion®

Eff ective iron defi ciency treatment for the whole family.

Vigantoletten®

Product to prevent rickets and vitamin D defi ciency.

Kytta®

Provides relief from muscle, joint and back pain using the natural healing power of comfrey root.

Solving problems

L I F E S C I E N C EL I F E S C I E N C E

Our Life Science business is dedicated to solving the world’s toughest life science problems by collaborating with the global scientifi c community.

Throughout history, people have been obsessed with aging, and have made many attempts – some more successful than others – to slow down the process. Indeed, people are now living longer and longer. But with longevity come age-related disorders, such as dementia, diabetes and certain cancers.

To address these disorders and improve quality of life for the elderly, scientists conducting basic research need to fi rst understand aging in biological terms – and our products are here to help them. Our well-documented chemical reagents can block certain pathways that may aff ect the way the body responds to food – which, in turn, aff ects metabolism. Our stem cell research portfolio allows researchers to investigate why aging stem cells stop self-renewal – and why we get gray hair. Scientists are using our platforms for cellular analysis to understand how the environment around cells, the building blocks of our body, can aff ect how cells age.

Aging is still inevitable. But we’re collaborating with researchers to better understand it – and make growing old a whole lot easier.

L I F E S C I E N C E

But not our customers in the pharmaceutical, cosmetics and medical device industries. For them, air can be a source of microbial contamination of production areas. We understand that accurate air monitoring is critical for our customers. Our MAS-100® family of microbial air monitoring systems, sample air in their production areas reliably and in accordance with regulatory standards.

Particle contamination concerns are everywhere: Despite their minute size, microorganisms pose a severe threat to the safety and efficacy of products and brands: every year, several hundred products have to be recalled, resulting in financial and image losses. If particles end up in the air, on surfaces, and in water, fuel and other liquids, the consequences can be serious for human health and safety, as well as for process efficiency. Breathing in polluted air increases the risk of cancer and age-related diseases. Contaminated aviation fuel can impair the performance of jet engines. Contaminated hydraulic fluids can cause unwanted wear and tear on industrial equipment.

We’ve been tackling this issue for more than half a century. Our comprehensive environmental monitoring solutions provide the best defense against contamination.

Our customers are in safe hands with Merck.

Air is an invisible, precious resource that most people take for granted.

Ensuring clean air

P E R F O R M A N C E M AT E R I A L S

MaKinGTHInGsCrYSTalClear Our quest for excellence drives us to explore and

innovate. From ultra-high defi nition screens and fl exible displays to the technology behind the display, we push the boundaries of possibility, researching and developing the technologies of the future in partnership with our customers.

We think about the bigger picture as well as the small details. Because our pioneering liquid crystal technologies use less energy than standard solutions, people can enjoy brilliant images for longer wherever they are.

Possibility excites us. Organic light-emitting diodes (OLEDs) are a technology we are exploring with enthusiasm. Beautifully thin, lightweight and energy-effi cient, they display perfect pictures at any angle, making them ideal for portable devices, large-format screens and lighting. Through a recent partnership, we have made it possible to print OLEDs, a discovery that opens the door to yet more possibilities.

We are the world market and technology leader in liquid crystals. Unstoppable in our quest to advance display technology, our products have enabled razor-sharp images in smartphones, laptops, fl at-screen TVs and tablet PCs around the world.

A little sparkle goes a long way. As the global market leader in pearlescent pigments, we add shimmer to the paint on your car, sparkle to your lipstick and luminescence to the coating on your packaging.

P E R F O R M A N C E M AT E R I A L S

creatinGa brIGHter worLd

Our Xirallic® range of pearl luster pigments uses a technology we discovered while working with aluminum oxide platelets, and is the secret behind the luxurious shine of premium cars. Our diverse range of eff ect pigments add sparkle to your ice cream and pearlescence to your lipstick.

Our work with pigments goes beyond color and shimmer. Our functional pigments impart unique physical properties to many diverse products; from antistatic fl oor coverings and counterfeit-proof product labels, to heat-refl ecting blinds. Merck ideas are everywhere.

I N N O V AT I O N

discoverinGTHe FuTure

Our cutting-edge research in immuno-oncology is fi ghting to change the direction of cancer care as we know it. Reimagining how cancer might be treated, we are working to boost the immune system so it may better recognize cancer cells and destroy them.

We are dedicated to supporting life science research and production, developing many new products every year to support this work. For example, our SmartFlare® RNA probes can identify the genes that control the activity of living cells in real time, opening up exciting possibilities for studying the origin and treatment of diseases.

Our groundbreaking work in liquid crystal research is uncovering the technologies of tomorrow. We consistently think beyond current display technologies, developing new products such as liquid crystal windows that automatically regulate a building’s sunlight levels, keeping it cool in summer and warm during winter.

We are united by our passion for new ideas. Over 5,000 Merck researchers are dedicated to discovering pioneering health solutions and developing new technologies. In 2015, our research and development spending totaled € 1.7 billion.

R E S P O N S I B I L I T Y

TakinG on responsIBility

We actively want to make a difference. Since 2007, we have been partnering with the World Health Organization (WHO) to help eliminate the neglected tropical disease schistosomiasis, which affects nearly 260 million people and takes an estimated 200,000 lives every year. We are fighting the disease head on by producing and donating praziquantel tablets.

We continuously work to improve the sustainability balance of our products. New products in our Life Science business aim to minimize our environmental impact, as well as the environmental impact of our customers, reducing the consumption of raw materials, energyand water as well as emissions and waste. That way we help you achieve your own sustainability goals.Our liquid crystal technology enables a similar effect, with even higher contrast displays consuming little energy.

We believe that culture inspires people, opening minds to new possibilities and fueling creativity. The Deutsche Philharmonie Merck is our musical ambassador. We are also involved in educational and literature projects around the world, such as sponsoring literature awards in Germany, Italy, India, Russia, and Japan.

We think in generations instead of quarters, and act responsibly. This is the foundation of our lasting economic success. It is important for us to take part in building the future. Our products and technologies are the key. They are an important contribution to the process of solving global problems. At the same time, we focus our resources where we can achieve the most. We engage in three strategically important areas, namely health, environment and culture.

O U R R O OT S

business wITH a conscience

The Merck family remains the majority owner of the company today, now in the 13th generation. Our family heritage anchors us to a moral and ethical code of conduct that compels us to take responsibility for our employees, our partnerships, the environment, and the wider world. But at the same time, we don’t accept the status quo. It’s in our nature to challenge, explore, reinvent and discover, driven by the belief that there is always a better way.

We get to know our customers and partners intimately, working closely with them so that we understand them and know what they need. This personal approach and deep-rooted sense of responsibility, combined with a passion for vibrant science and technology, is a recipe for success. This is what makes us uniquely Merck.

But our generational legacy is also backed up by entrepreneurial success. Listed on the stock market, we combine the dynamism expected by international markets with the long-term thinking of a family business. As we look to the future, we believe that this combination of traditional values and business acumen will continue to make great things happen and bring collective business success.

Our ownership structure

Merck products touch our lives in diverse ways. From sunscreen and sparkly lipstick, to life-changing cancer therapies and technologies that affect how people will live and work in the future. But it’s not just our products that make us truly unique. It’s our employees and our culture that set us apart.

Merck KGaA Total capital 100%

ShareholdersShare capital 29.7%

Merck FamilyEquity interest 70.3%

GrowinGproFItably

K E Y F I G U R E S

Net sales

EBITDA pre exceptionals

Margin (% of net sales)

Research and development costs

Business free cash fl ow

Employees (as of December 31)

Dividend per share (in €)

€ billion

Our key fi gures

12.8

3.6

28.3

1.7

2.8

49,613

1.05

2014

11.4

3.4

29.8

1.7

2.6

39,639

1.00

2015

Net sales by business sector 2015 (€ million)

20%PerformanceMaterials2,556

26%LifeScience3,355

54%Healthcare

6,934

28%PerformanceMaterials1,132

22%LifeScience856

50%Healthcare

2,002

EBITDA pre exceptionals by businesssector 2015 (€ million)

33%Asia-Pacifi c4,241

32%Europe

4,103

10%Latin America1,265

21%North America

2,723

4%Middle East & Africa 513

Net sales by region 2015 (€ million)

There is a single light of science, and to brighten it anywhere is to brighten it everywhere.Isaac Asimov, American science fiction writer and professor of biochemistry

MERCKgroup.com

Merck – Who we arePublished in April 2016Merck Group CommunicationsFrankfurter Strasse 25064293 Darmstadt, Germany

+ 49 6151-72-0comms@merckgroup.com W.840.103