着名制药企业interimreport(1)

4thQuarter2003February16th,20044thQuarter2003Page2Remarks:Allfiguresrelatetothe4thQuarter2003ifnototherwisestated.Allcomparativefiguresrelatetothecorrespondinglastyear´speriod.AsaresultofthechangedaccountingpracticeinNorthAmericasincelastyear,certainrebatestocustomersmadebytheGenericsdivisionareshownfrom2003onwardassalesdeductionsinsteadofmarketingandsellingexpenses.Toensureapropercomparison,lastyear'sfigureshavebeenreclassifiedaccordingly.Thischangeinprocedurehasnoeffectontheoperatingresultorsubsequentlineitems.4thQuarter2003Page3BreakingNewsØMercktosellVWRInternationalØClayton,Dubilier&RicetopayUSD1.68bnMerckGroup4thQuarter2003Page4ObservationsDrawn•Therearetwohighlyattractivegrowthbusinessesintheportfolio–GenericsandLiquidCrystals•TheOncologyandCardioMetabolicproductpipelinesrepresentthefuturegrowthenginefortheEthicalsbusiness.Additionally,theEthicalsbusinesscouldbenefitfromtargetedacquisitionsandproductin-licensing•Merckpossessesagoodbaseofhighlyprofitable,morematurebusinesses–Chemicals[nonLC],CHC•Anumberofnon-corebusinessesexistthatcanbeleveraged,throughdivestiture,toaccessfundsforinvestmentintheidentifiedgrowthareas–Latestexamples:VWR,BioMerMerckGroup4thQuarter2003Page5ActionsPromised…•Focusingoncorebusinesses…whereweholdorstriveforamarketleadershipposition…willprovidefuturegrowth•BalancedbystablebusinessesinPharmaceuticalsandChemicals…inordertodiversifyandbalancerisktoourshareholders…forbothfinancialstabilityandcashgenerationtofundcorebusinesses•Onaglobalbasis…beingpresentandsuccessfulinglobalmarketsisamustMerckGroup4thQuarter2003Page6…anddelivered•Divestments…–VWR:announcedtoday,closingexpectedinH12004–BioMer:closingdueinH12004–PharmaceuticalResources(PAR)2001–Bracco2000•…primarilyused–toimproveourbalancesheetsignificantlybutalso–fortargetedacquisitionsandin-licensing•products(Erbitux,Niaspan)•inthefieldofgenerics(Mohan),•newresearchcompetencies(Biovation)MerckGroup4thQuarter2003Page7CostcontainmentactivitiesongoingBothdivisions…haveprofitableandstablebusinesses…operatewithastrongbrandreputationinindustry…overlapincustomerbase…willrealizesynergieswhenjoiningforces…willbeconsolidatedintoasingledivision:MergerA&RandLSPLifeScience&AnalyticsMerckGroup4thQuarter2003Page8Merckw/oLaboratoryDistributionProformaResultsFY2003MerckGroup(EURmio)Sales7,2025,003OperatingResult736657ProfitafterTax218191FreeCashFlow442316ROS10.2%13.1%ROCE12.1%13.5%MerckGroupw/oLabdistributionMerckGroupasreported4thQuarter2003Page9Merckw/oLaboratoryDistributionProformaBalanceSheet2003MerckGroup(EURmio)ParticipationinVWR-1,041FixedAssets3,8653,151CurrentAssets2,8192,475Cash298276TotalAssets6,9826,943Equity2,3632,636Provisions1,7151,617FinancialDebt1,7641,751OtherLiabilities1,140939TotalEquity/Liabilities6,9826,943MerckGroupw/oLabdistributionMerckGroupasreported4thQuarter2003Page10MerckGroup2003/Q420034thQuarter2003Page11AtaGlance20022003•OrganicGrowth:+5.0%+7.3%•NominalGrowth:-0.7%-2.7%•CurrencyEffects:EUR-347mioEUR-716mio•OperatingResult:EUR616mioEUR736mio(-29.7%)(+19.4%)•ProfitAfterTax:EUR215mioEUR218mio(+1.1%)•FreeCashFlow:EUR442mioEUR442mio•FreeCashFlowbeforeExceptionals,EUR145mioEUR528mioDivestmentsandAcquisitionsMerckGroup4thQuarter2003Page12KeyFiguresQuarterlyMerckGroupSales638610607625586441415410429446808790843833837Q42002Q12003Q22003Q32003Q42003OperatingResult101618261974787478726591997292Q42002Q12003Q22003Q32003Q42003PharmaceuticalsLaboratoryDistribution*Chemicals*1,8231,7591,800149185inEURmio*includingintragroupsales1831,8311911,8121764thQuarter2003Page13KeyFiguresFullYear2,7111,7833,1537,4002,4271,7003,3037,20202000400060008000MerckGroupPharmaceuticalsChemicals*Lab.Distribution2002200361627226073635430284790200400600800MerckGroupPharmaceuticalsChemicalsLab.Distribution20022003SalesinEURmioOperatingresultinEURmioMerckGroup19.4%-2.7%-6.1%16.4%30.1%-10.5%-4.6%4.8%*includingintragroupsales*4thQuarter2003Page14*basedonoperatingresultROS*10.111.016.13.202468101214161820Q42002Q12003Q22003Q32003Q42003ROCE*12.812.214.66.402468101214161820Q42002Q12003Q22003Q32003Q42003PharmaceuticalsLaboratoryDistributionChemicalsMerckGroupin%KeyIndicatorsQuarterlyMerckGroup4thQuarter2003Page15KeyIndicatorsFullYearin%2003200220032002Group10.28.312.19.6Pharmaceuticals10.78.612.49.4Chemicals17.814.615.212.3Lab.Distribution3.33.16.45.8ROSROCEMerckGroup4thQuarter2003Page16SalesGrowthAnalysisQ4-8.2-4.4-9.1-12.20.5-3.67.413.97.73.2-15-10-5051015MerckGroupPharmaceuticalsChemicalsLaboratoryDistributionOrganicAcquisitions/DivestituresCurrency0.7-0.1-0.6-8.21.23.6MerckGroupin%4thQuarter2003Page17SalesGrowthAnalysisFY-9.7-6.9-9.9-12.40.6-3.411.18.77.31.4-15-10-5051015MerckGroupPharmaceuticalsChemicalsLaboratoryDistributionOrganicAcquisitions/DivestituresCurrency0.5-0.3-2.7-10.5-4.64.8MerckGroupin%4thQuarter2003Page18SalesbyRegionMerckGroup224175371551272061464672268Asia/AfricaAustraliaEuropeLatinAmericaNorthAmericainEURmioQ4:3.3%Q4:-7.7%Q4:-12.3%Q4:13.1%78353492403*includingintragroupsalesPharmaceuticalsLaboratoryDistribution*Chemicals*4thQuarter2003Page19Sh