März 2009 Overview July 2009 Corporate Communications.

März 2009 Overview July 2009 Corporate Communications

Contents 1 2 3 4 5 The company Pharmaceuticals Chemicals
März 2009 1 The company 2 Pharmaceuticals 3 Chemicals 4 Corporate Responsibility 5 History July 2009 Copyright Merck KGaA Corporate Communications

Merck at a glance März 2009 Merck conducts its operations in two major business sectors – Pharmaceuticals and Chemicals – Pharmaceuticals: Prescription drugs and consumer health care products – Chemicals: Specialty products for the electronics, coatings, cosmetics, pharmaceutical and biotech industries Approximately 33,000 employees in 59 countries Merck manages its operating activities under the umbrella of Merck KGaA, which was listed on the Frankfurt Stock Exchange in 1995 and admitted to the DAX® in June 2007. Around 30% of the total capital is publicly traded, while the Merck family, as general partner, indirectly holds around 70%. Friedrich Pützer (1871–1922), famous Art Noveau architect and professor of urban planning Pützer Tower and Pyramid at Darmstadt headquarters July 2009 Copyright Merck KGaA Corporate Communications

Merck is not the same as Merck
März 2009 Merck KGaA and the U.S. pharmaceutical company Merck & Co. have been two independent companies since 1917. Common historical roots: 1891 Merck & Co. founded in New York by Georg Merck, a member of the Merck family As a consequence of World War I, Merck & Co. was expropriated and became an independent company. Today, Merck & Co. holds the rights to the name within North America. Merck operates there as EMD and holds the rights to the name Merck in the rest of the world. July 2009 Copyright Merck KGaA Corporate Communications

Performance & Life Science Chemicals
Corporate structure März 2009 Merck Group Business sectors Pharmaceuticals Chemicals Merck Serono Liquid Crystals D i v i s i o n s Consumer Health Care Performance & Life Science Chemicals As the parent company, Merck KGaA manages the operating business of the Merck Group. Central functions July 2009 Copyright Merck KGaA Corporate Communications

Key figures for 2008 € million 2008 2007 Change in % Total revenues
März 2009 € million 2008 2007 Change in % Total revenues 7,558 7,057 7.1 Gross margin 5,652 5,277 Research & Development 1,234 1,028 20 Operating result 1,131 976 16 Free cash flow before acquisitions and divestments 601 978 -38 ROS = Return on sales (Operating result/total revenues) Return on sales (ROS) in % 15.0 13.8 July 2009 Copyright Merck KGaA Corporate Communications

Business sectors* 2008 Total revenues: € 7,558 million
März 2009 Total revenues: € 7,558 million Operating result: € 1,113 million € million € million *excluding Corporate and Other July 2009 Copyright Merck KGaA Corporate Communications

Key figures January-June 2009
März 2009 in € m Jan.-June 2009 Jan.-June 2008 Change in % Total revenues 3,756 3,761 -0.1 Gross margin 2,781 2,821 -1.4 R&D 653 564 16 Operating result 383 680 -44 Free cash flow before acquisitions and divestments 243 350 -31 Note: The figures for 2006 relate only to Merck KGaA and do not include the former Serono S.A.! ROS = Return on sales (Operating result/total revenues) ROS in % 10.2 18.1 July 2009 Copyright Merck KGaA Corporate Communications

Merck – Business Strategies
März 2009 xx/xx/xxxx Merck Serono Focus on specialist and innovative drugs in prescription markets Grow three core therapeutic areas backed by strong established fields Improve R&D efficiency and leverage biopharmaceutical expertise Consumer Health Care Focus on over-the-counter pharma products in four health themes Grow key brands through regional expansion Strengthen business in established markets Liquid Crystals Focus on innovation in display technologies to sustain market leadership Capitalize on excellent reputation in quality and reliability Broaden application basis long-term with penetration into new markets Performance & Life Science Chemicals Focus on specialty chemicals solutions Leverage strong expertise in regulated markets with high entry barriers Strengthen position in growth focus regions: India and China July 2009 Copyright Merck KGaA 9 Corporate Communications Editor: Presentation name here

Merck Group sites März 2009 Corporate Communications
1. Altdorf, Switzerland 2. Amsterdam, Netherlands 3. Athens, Greece 4. Atsugi, Japan 5. Aubonne, Switzerland 6. Bangkok, Thailand 7. Bari, Italy 8. Barra do Corda, Brazil 9. Beijing, China 10. Belgrade, Serbia 11. Billerica (MA), USA 12. Bogotá, Colombia 13. Bratislava, Slovakia 14. Brussels, Belgium 15. Bucharest, Romania 16. Budapest, Hungary 17. Buenos Aires, Argentina 18. Cairo, Egypt 19. Calais, France 20. Caracas, Venezuela 21. Chilworth, United Kingdom 22. Coinsins, Switzerland 23. Cologne, Germany 24. Corsier-sur-Vevey, Switzerland 25. Darmstadt, Germany 26. Dijon, France 27. Dubai, United Arab Emirates 28. Dublin, Ireland 29. Espoo, Finland 30. Fontenay-sous-Bois, France 31. Fourways, South Africa 32. Frankfurt, Germany 33. Frederiksborg, Denmark 34. Geneva, Switzerland 35. Gernsheim, Germany 36. Gibbstown (NJ), USA 37. Goa, India 38. Grafing, Germany 39. Guangzhou, China 40. Guatemala City, Guatemala 41. Hanoi, Vietnam 42. Hellerup, Denmark 43. Herzlia-Pituach, Israel 44. Ho-Chi-Minh City, Vietnam 45. Hohenbrunn, Germany 46. Hong Kong, China 47. Hull, United Kingdom 48. Istanbul, Turkey 49. Jakarta, Indonesia 50. Karachi, Pakistan 51. Kaunas, Lithuania 52. Kilsyth, Australia 53. Lehrte, Germany 54. Les Berges du Lac, Tunisia 55. Lima, Peru 56. Lisbon, Portugal 57. Ljubljana, Slovenia 58. London, United Kingdom 59. Lyon, France 60. Madison (WI), USA 61. Madrid, Spain 62. Mainz, Germany 63. Makati City, Philippines 64. Martillac, France 65. Mexico City, Mexico 66. Meyzieu, France 67. Milan, Italy 68. Milwaukee (WI), USA 69. Mississauga, Canada 70. Modderfontein, South Africa 71. Mollet del Vallés, Spain 72. Monaco, Monaco 73. Montevideo, Uruguay 74. Moscow, Russia 75. Mumbai, India 76. Netanya, Israel 77. Norwood (OH), USA 78. Nottingham, United Kingdom 79. Oakville, Canada 80. Onahama, Japan 81. Oslo, Norway 82. Overijse, Belgium 83. Palmerston North, New Zealand 84. Panama City, Panama 85. Prague, Czech Republic 86. Pyongtaek-Shi, South Korea 87. Quetta, Pakistan 88. Quito, Ecuador 89. Reinbek, Germany 90. Ricany-Jazlovice, Czech Republic 91. Riga, Latvia 92. Rio de Janeiro, Brazil 93. Riyadh, Saudi Arabia 94. Rockland (MA), USA 95. Rome, Italy 96. San Diego (CA), USA 97. Santiago de Chile, Chile 98. São Luis, Brazil 99. São Paulo, Brazil 100. Savannah (GA), USA 101. Schaffhausen, Switzerland 102. Schwalbach am Taunus, Germany 103. Semoy, France 104. Seoul, South Korea 105. Shah Alam, Malaysia 106. Shanghai, China 107. Singapore, Singapore 108. Sofia, Bulgaria 109. Spittal, Austria 110. Stockholm, Sweden 111. Sydney, Australia 112. Taipei, Taiwan 113. Tallin, Estonia 114. Taoyuan, Taiwan 115. The Hague, The Netherlands 116. Tokyo, Japan 117. Tunbridge Wells, United Kingdom 118. Umea, Sweden 119. Unterschleissheim, Germany 120. Vantaa, Finland 121. Vienna, Austria 122. Vilnius , Lithuania 123. Wadeville, South Africa 124. Warsaw, Poland 125. Zagreb, Croatia 126. Zug, Switzerland July 2009 Copyright Merck KGaA Corporate Communications

Pharmaceuticals: Key figures 2008
März 2009 € million 2008 2007 Change in % Total revenues 5,428 4,877 11 Gross margin 4,485 4,048 Research & Development 1,091 891 23 Operating result 655 417 57 Free cash flow before acquisitions and divestments 592 821 -28 Return on sales (ROS) in % 12.1 8.5 July 2009 Copyright Merck KGaA Corporate Communications

Pharmaceuticals: Total revenues and operating result 2008
März 2009 Total revenues: 5,428 million € Operating result: 655 million € € million € million July 2009 Copyright Merck KGaA Corporate Communications

Pharmaceuticals: Sales 2008
März 2009 Sales: € 5,089 million € million July 2009 Copyright Merck KGaA Corporate Communications

Merck Serono – Product portfolio
März 2009 Oncology: Targeted cancer therapy: Erbitux® (metastatic colorectal cancer, head and neck cancer) Chemotherapy: UFT® (colorectal cancer) Neurodegenerative Disorders: Rebif® (multiple sclerosis) Fertility: Products to help infertile couples at every stage of the reproductive cycle: Gonal-f®, Ovitrelle®, Luveris®, Cetrotide®, Crinone®, Pergoveris™ Novantrone® is marketed exclusively in the United States by EMD Serono for secondary progressive, progressive-relapsing, and worsening relapsing-remitting MS. July 2009 Copyright Merck KGaA Corporate Communications

Merck Serono – Product portfolio
März 2009 Endocrinology: Growth hormone disorders (Saizen®) HIV-associated wasting (Serostim®) Hyperphenylalaninemia (Kuvan®) CardioMetabolic Care: Integrated therapies for Type 2 diabetes (Glucophage® family) Cardiovascular diseases (beta-blockers of the Concor® family) Thyroid disorders (Euthyrox®) Other therapeutic areas: Treatment of acute cyanide poisoning (Cyanokit®) Maintenance of abstinence in alcohol dependency (Campral®) July 2009 Copyright Merck KGaA Corporate Communications

Merck Serono: Sales 2008 Sales by therapeutic area Sales by product
März 2009 Sales by therapeutic area Sales by product Approx. 60% of sales generated by innovative biotech products July 2009 Copyright Merck KGaA Corporate Communications

Merck Serono: Highlights of 2008/2009
März 2009 Total revenues amounted to € 4,987 million (2008) Sales of Erbitux® in 2008: € 565 million (+20%) Erbitux®: NICE1: positive recommendation for 1st line use in mCRC patients with KRAS wild-type tumors and liver limited disease Merck Serono has requested re-examination of the negative CHMP2 opinion on Erbitux in Non Small-Cell Lung Cancer (NSCLC) Sales of Rebif® in 2008: € 1331 million (+9.3%) RebiSmart™-1st electronic injection device in MS launched from June 2009 Cladribine tablets - potentially the first oral treatment for MS Marketing Authorization Application to the EMEA submitted in July 2009; submission in preparation in other countries including the US Kuvan® approved in the EU; market launch in 2009 in France, Germany, Spain, UK, Greece, The Netherlands and Austria; ongoing in other countries 1 National Institute for Health and Clinical Excellence (Great Britain) 2 Committee for Medicinal Products for Human Use July 2009 Copyright Merck KGaA Corporate Communications

Erbitux®: Success in Oncology
März 2009 Merck‘s first cancer drug: one of the most successful oncology product launches in Europe Erbitux® – a monoclonal antibody for targeted treatment of tumors Specifically blocks the epidermal growth factor (EGFR) Approved in 76 countries* all over the world for treating patients: In various indications in metastatic colorectal cancer and in locally advanced or recurrent and/or metastatic squamous cell carcinoma of the head and neck Colorectal cancer and head and neck cancer Colorectal cancer is the fourth most common form of cancer worldwide. More than 370,000 people develop colorectal cancer in Europe every year, accounting for 13% of the total cancer burden and around 200,000 deaths. Over 90% of people diagnosed with CRC are older than 50. The risk factors include a fatty diet, smoking and alcohol consumption. The symptoms such as blood in the stool or changes in bowel habits are often non-specific. Approximately 25% of patients present with metastatic disease. Five-year survival rates for patients with mCRC are as low as 5%. Head and neck cancer is the sixth-most frequently occurring cancer worldwide. It includes cancers of the tongue, mouth, salivary glands, pharynx, larynx, sinus, and other sites located in the head and neck area. In Europe alone, it is estimated that there are around 143,000 new cases of head and neck cancer and more than 68,000 deaths due to the disease each year. About 40% of patients with head and neck cancer have recurrent and/or metastatic SCCHN. The risk factors include smoking and alcohol consumption. Head and neck cancer is more common in people aged 40 and over. Although there have been significant improvements in chemotherapy and surgical techniques, the disease is particularly challenging to treat since most patients present with advanced disease and often have secondary tumors, in addition to suffering from other co-morbidities. Monoclonal antibodies Antibodies are protein molecules that perform an important function in the immune system of humans. They recognize foreign bodies (antigens), for example pathogens, by certain molecular structures on their surface and bind to them. The foreign invaders are then destroyed by the immune cells. The special properties of antibodies can also be used to diagnose and fight cancer. Laboratory techniques, whereby mice are vaccinated with an antigen, can be used to obtain monoclonal antibodies that all recognize the same target structure. *not all indications are approved in all countries July 2009 Copyright Merck KGaA Corporate Communications

Sales development of Erbitux®
März 2009 Sales by Merck € million In July 2008, the European Commission approved the expanded use of Erbitux® in combination with chemotherapy to include not only second- and third-line treatment but also first-line treatment of patients with epidermal growth factor receptor (EGFR)-expressing, KRAS wild-type metastatic colorectal cancer. Patients with KRAS wild-type tumors, which occur in up to 65% of cases, are most likely to respond to Erbitux®, making this drug the first tailored therapy in first-line treatment of metastatic colorectal cancer. As expected, the sales growth rate of Erbitux® slowed from the second to the third quarter of This was due to the fact that KRAS testing had to be implemented as a standard diagnostic procedure. Accordingly, the number of second- and third-line patients initially declined as a result of the focus on patients with KRAS wild-type tumors. In the course of expanded approval, we expect prescriptions for first-line treatment to increase, thereby more than compensating for the lower number of patients in second- and thirdline treatment over the medium term. A crucial factor is that reimbursement in different countries is being granted at different points in time. * * The slowdown in sales growth in Q3 vs. Q reflects the introduction of a biomarker test (KRAS test) July 2009 Copyright Merck KGaA Corporate Communications

Rebif®: A leading MS therapy
März 2009 Drug (interferon 1-beta) to treat relapsing forms of multiple sclerosis (MS) Rebif® was first launched by Serono in Europe in 1998 and in the U.S. in 2002 Available in more than 80 countries worldwide Market leader outside the U.S., continued strong growth in the U.S. A blockbuster: global sales in 2008 totaled € 1.3 billion (+9.3% over 2007) A new formulation has meanwhile been introduced in all countries of the European Union as well as in Canada; the new formulation was recently approved in a number of countries including Australia and Switzerland as well as in several Latin American and Asian countries Multiple sclerosis Multiple sclerosis is a chronic inflammatory disease of the central nervous system (CNS). It is the most common non-traumatic CNS disease among young adults. According to estimates by the World Health Organization, up to 2.5 million people suffer from MS. The symptoms vary, the main ones being visual disorders, numbness or a tickling sensation in the extremities as well as muscle weakness and coordination problems. The relapsing form of MS, in which the disease symptoms occur in phases and then disappear again, is the most frequent . Interferons Interferons are proteins produced by the cells of the immune system in response to foreign agents such as viruses. They have an antiviral effect on the target cell after binding to various receptors, inhibit the division of cells, e.g. tumor cells, and influence the immune system by either activating or inhibiting antibody production, depending on the situation. There are three classes of interferons – alpha, beta and gamma. In medicine, they are used to treat different diseases, for example interferon beta is used in the treatment of multiple sclerosis. . July 2009 Copyright Merck KGaA Corporate Communications

Sales development of Rebif®
März 2009 Sales € million Please note: For , Serono computed its sales using cross exchange rates, i.e. local currencies were translated into U.S. dollars. These numbers have been translated from U.S. dollars into euros using the valid exchange rates applied by Merck in the respective years. As of 2006, sales in local currency will be translated directly into euros using the Merck exchange rates. Source: Company data July 2009 Copyright Merck KGaA Corporate Communications

Pharmaceutical R&D März 2009 In 2008, R&D spending by Merck Serono totaled € 1,074 million – equivalent to around 22% of the division’s total revenues A well-stocked development pipeline: currently around 30 projects in clinical development Focus on unmet medical needs Oncology: Targeted cancer therapies Neurodegenerative Diseases: Multiple sclerosis and Parkinson‘s disease Autoimmune and Inflammatory Diseases: osteoarthritis, rheumatoid arthritis, systemic lupus erythematosus (SLE) Fertility Endocrinology July 2009 Copyright Merck KGaA Corporate Communications

Oncology research März 2009 “Combination is key”: Development of new therapies that act on three areas: The tumor cell The tumor environment The immune system Targeted approaches to extend survival time of cancer patients and to improve their quality of life July 2009 Copyright Merck KGaA Corporate Communications

Research into Neurodegenerative Diseases
März 2009 Discovery and development of innovative therapies to treat Neurodegenerative Diseases (multiple sclerosis, Parkinson’s disease) Cladribine - potentially the first oral therapy for the treatment of multiple sclerosis Safinamide - new prospects in the treatment of Parkinson’s disease July 2009 Copyright Merck KGaA Corporate Communications

Consumer Health Care Products for self-medication
März 2009 Consumer Health Care Products for self-medication Mobility: Products to improve mobility e.g. Flexagil®, Seven Seas®, Seven Seas® JointCare, Kytta® Everyday health protection: Vitamins and minerals, e.g. Bion®3, Multibionta®, Cebion®, Diabion®, Women’s and children’s health: e.g. Femibion®, Kidabion® (Haliborange®) Cough and cold: e.g. Nasivin®, Sedalmerck® Bion®3: the world’s first multivitamin product containing probiotic bacteria cultures Diabion®: A vitamin product specifically for patients with diabetes Femibion®: Multivitamin product with folic acid for pregnant and nursing women Kidabion® (Haliborange®): vitamin product for children Nasivin®: Cold remedy Sedalmerck®: Flu remedy July 2009 Copyright Merck KGaA Corporate Communications

Consumer Health Care Sales 2008
März 2009 Sales: € 440 million* € million *including € 5 million achieved in North America July 2009 Copyright Merck KGaA Corporate Communications

Consumer Health Care Highlights 2008/2009
März 2009 Total revenues in 2008: € 442 million Sales growth considerably exceeds that of the global consumer health care market Strategic brands further strengthened Focus on health themes with high consumer benefit Acquisition of the Belgian company Bio-Fyt expands product portfolio in Mobility, Women’s Health and Everyday Health Protection Successful expansion in the growth markets of eastern Europe, Asia and Latin America Foto The strategic brands of the Consumer Health Care division These brands include products to strengthen the joints sold under the Seven Seas® and Kytta® brands, the vitamin products Cebion®, Bion®3 (Multibionta® ) and Diabion®; the women’s and children’s health products Femibion® and Kidabion® (Haliborange®) as well as the cold remedy Nasivin®. July 2009 Copyright Merck KGaA Corporate Communications

Chemicals: Key figures 2008
März 2009 € million 2008 2007 Change in % Total revenues 2,123 2,150 -1.3 Gross margin 1,169 1,226 -4.6 Research & Development 143 137 4.4 Operating result 558 631 -12 Free cash flow before acquisitions and divestments 477 557 -14 Return on sales (ROS) in % 26.3 29.3 July 2009 Copyright Merck KGaA Corporate Communications

Chemicals: Total revenues and operating result 2008
März 2009 Total revenues: € 2,123 million Operating result: € 558 million € million € million July 2009 Copyright Merck KGaA Corporate Communications

Chemicals: Sales 2008 Sales: € 2,106 million € million März 2009
July 2009 Copyright Merck KGaA Corporate Communications

März 2009 Liquid Crystals Merck is the world‘s leading supplier of liquid crystals for liquid crystal displays (LCDs) in Flat screen televisions Notebooks and PC monitors Mobile telephones as well as numerous consumer electronic devices and navigation systems Research and distribution of liquid crystals began more than 100 years ago We also offer organic light-emitting materials for OLEDs or new light sources OLEDs: At the heart of OLEDs are semiconducting organic materials which emit light and luminesce under the influence of electric voltage. There are two different types of OLED technology: Small molecules and long-chain polymers. The method selected depends on the customer, application and manufacturing process. The small molecules are produced as solids through vacuum deposition on a glass substrate. By repeating this process a number of times, a stack of nanolayers is formed from various materials matched to one another, giving displays which are already being used in first products, such as mobile telephones and MP3 players July 2009 Copyright Merck KGaA Corporate Communications

Liquid Crystals: Highlights 2008/2009
März 2009 Market and technology leadership successful maintained Total revenues amounted to € 877 million in 2008 Return on sales: 44.6% Innovative Merck materials have supported the breakthrough of PS-VA technology (better contrasts, faster switching times, greater energy efficiency) Presentation of the first LCD television with 200/240 hertz technology (higher definition of fast-moving pictures, for example sports programs) – contains liquid crystals from Merck Superb position to maintain market leadership going forward July 2009 Copyright Merck KGaA Corporate Communications

März 2009 Laboratory Business Analytical Reagents – High-purity acids, salts and alkalis – Organic chemicals for production – Columns, thin-film plates and solvents for analytical chromatography (Chromolith® range) Mobile systems for food and environmental analysis Rapid tests for hygiene control and dry media cultures for microbiological tests Rapid tests and other products for protein and drug research Chromolith: A new dimension of HPLC was opened up by Merck in 2000: While ever smaller microparticles could already be separated at a very fast rate, a “turbo function” was introduced with the monolithic column “Chromolith”. This is based on the novel structure of the silica rod that contains, on the one hand, micrometer-sized channels (macropores) that allow the eluent to pass through very quickly. On the other hand, so-called mesopores that provide a large active surface for the separation process. This makes it possible to considerably reduce analysis times – a breakthrough that made Merck the technology leader. It’s no surprise that Chromolith has been awarded many prizes. “Experience drives innovation” – this principle threads through the 100-year history of chromatography at Merck. Rapid tests and other products for protein research and drug research: detergents, biochemicals, antibodies, assays and products for peptide synthesis, sample preparation and protein expression July 2009 Copyright Merck KGaA Corporate Communications

März 2009 Life Science Solutions Products and services for the entire drug development and manufacturing process chain Chemical synthesis and biotech processes, analyses, isolation and purification of chemical and biotech substances Pharmaceutical formulation development Cosmetic active ingredients for sun protection products (Eusolex®) for skin care products (RonaCare®) Eusolex®: Steady growth indicates the success of the Eusolex T range of products based on titanium dioxide, which represent an important segment of Merck’s Cosmetic Actives portfolio. Major cosmetic manufacturers use Eusolex® T-UV filters in a wide variety of products which no longer include only the classic sun protection products such as tanning lotion or sunscreen, but also many daily skincare products for facial care, as well as decorative cosmetics where UV protection is also desired. UV filters are increasingly being used in haircare products as well. Cosmetic manufacturers particularly like titanium oxide-based UV filters, as they tend to be gentler to the skin and very well tolerated. As a result, even many natural cosmetics use products from the Eusolex® T range. July 2009 Copyright Merck KGaA Corporate Communications

März 2009 Pigments Effect pigments for industrial applications (e.g. Iriodin®, Colorstream®, Xirallic®, Miraval®, Pyrisma®) Areas of application: Automotive and industrial coatings Printing inks Plastics Effect pigments for the cosmetics industry (e.g. Ronastar®, Xirona®, Timiron®) Xirallic®: Effect pigments create eye-catching color effects for a wide variety of products – in both product design and packaging. Important impetus to the further development of effect pigments comes from the automotive industry, which places special demands on their technical properties, such as weather resistance. One of Merck’s recent product successes in this sector is Xirallic®: a range of extremely color-intensive effect pigments, which are impressive attention due to their exceptional crystal effect. The high gloss and pronounced shimmer of Xirallic® pigments appeal especially to automotive manufacturers for use in their color coatings. July 2009 Copyright Merck KGaA 3 Corporate Communications

Performance & Life Science Chemicals: Highlights 2008/2009
März 2009 Total revenues amounted to € 1,246 million in 2008 Return on sales: 13.4% Leader in its core European markets Strong growth in Asia and Latin America Sustained growth of rapid microbiological tests for detecting harmful and pathogenic microorganisms Expansion of the chromatography product portfolio by acquiring the Swedish firm SeQuant Portfolio of the Emprove® premium brand expanded (pharmaceutical raw materials) July 2009 Copyright Merck KGaA Corporate Communications

Research & Development
März 2009 Chemical research for sophisticated applications in research, industry and everday life New components and mixtures for liquid crystal displays, in particular for large-format, flat-screen televisions and computer monitors using new technologies Organic light-emitting materials for OLEDs (organic light-emitting diodes) Reagents and products for instrumental analysis, chromatography, microbiology, food and environmental analysis Products and services for the entire process chain from research to market launch High-quality pigments with extraordinary color and luster effects, as well as functional pigments, e.g. for brand protection July 2009 Copyright Merck KGaA Corporate Communications

Corporate Responsibility
März 2009 We strive to achieve positive recognition for our company in all communities in which we operate worldwide. Merck gives top priority to its responsibility for health and safety and protecting the environment. Responsibility with respect to: Environment Community Employees Products In 2003, 2005 and 2007 Merck KGaA published a Corporate Responsibility (CR) Report entitled “Responsibility for Employees, the Environment and the Community”. The information contained in this report applies to all our locations and activities; the reporting period covers the past two years. The environmental and safety data relate to 100 percent of our production capacity. The employee data — insofar as not stated otherwise — relate to all employees of the Merck Group. Prior to this, Environmental Reports were published in 1993, 1995 and 1997 as well as a Responsible Care Report in 2000. . July 2009 Copyright Merck KGaA Corporate Communications

From our Mission Statement
März 2009 We, the management and employees, are striving for entrepreneurial success. Entrepreneurial success starts with people. Our goal is to operate a worldwide business that produces meaningful benefits for consumers, our market partners and our community. Our global Mission Statement defines our self-image as a successful and responsible company. The document reads as follows: We, the management and employees, are striving for entrepreneurial success. Entrepreneurial success starts with people. Our goal is to operate a worldwide business that produces meaningful benefits for consumers, our market partners and our community. Through efficient research and development, production and marketing of pharmaceutical and chemical specialties, we want to extend opportunities to our customers. To achieve this, we focus our endeavors on business areas where we can achieve a competitive advantage through the excellent quality of our products, systems and services. Our objective is to establish permanent business relationships and not merely short-term success. On the basis of these principles, we operate as an independent and profit-oriented enterprise. We expect a high level of performance from each other, and reward this accordingly. We wish to secure an acceptable return on capital for our investors. We respect the cultural distinctions and national interests of all countries in which we operate. We strive to achieve positive recognition for our company within the community. Merck attaches particular importance to its responsibility for safety. We have an obligation to respect the environment. We will deal honestly and constructively with one another. We regard open communication, both internal and external, as a fundamental prerequisite for reaching an understanding of our common goals and for giving meaning to what we do. We shall not be constrained by borders between business areas or countries. All employees, male or female, have equal opportunities to develop their careers. All of us make a personal contribution to the company‘s entrepreneurial success through our mutual initiative, creativity and sense of responsibility. July 2009 Copyright Merck KGaA Corporate Communications

Our values Courage Responsibility Integrity Achievement Respect
März 2009 Courage Responsibility Integrity Achievement Respect Transparency Integrität Respekt Transparenz Mut Leistung Verantwortung July 2009 Copyright Merck KGaA Corporate Communications

Our values Courage opens the door to the future.
März 2009 Courage opens the door to the future. Achievement makes our entrepreneurial success possible. Responsibility determines our entrpreneurial actions. Respect is the foundation of any partnership. Integrity ensures our credibility. Transparency makes mutual trust possible. July 2009 Copyright Merck KGaA Corporate Communications

Employees Entrepreneurial success starts with people
März 2009 Entrepreneurial success starts with people We believe that talent is an important precondition, and lifelong learning a never-ending responsibility. But only the entrepreneurial thinking of our employees will make the decisive difference. Our corporate culture creates trust and makes innovation possible. Teams are an essential element of successful cooperation among our workforce of approximately 33,000. July 2009 Copyright Merck KGaA Corporate Communications

Promoting and supporting staff
März 2009 High level of investment in advanced training Above-average social benefits Helping employees to reconcile the demands of having both a career and a family Employee profit-sharing International management development programs Merck Innovation Award Merck Award Plan for Inventions Employee suggestion scheme A family-friendly company: In recent years, Merck has received various awards for its efforts to help employees better reconcile the demands of a career and a family. Merck Innovation Award: Prize for the best innovation at international level. The main aim of the Merck Innovation Award is to increase efficiency, cut costs, and achieve a lasting competitive advantage. Apart from the main prize, prizes are awarded in three categories: “Intercultural Cooperation” “Entrepreneurial Thinking” “Customer Focus”. Merck Award Plan for Inventions (MAPI): An international guideline to reward inventions within the Merck Group. Merck uses MAPI to enable creative employees around the world to benefit from economic success. Inventors can decide as a group whether to be rewarded in accordance with MAPI or nationally valid legislation on employee inventions. July 2009 Copyright Merck KGaA Corporate Communications

Commitment to fighting schistosomiasis, a tropical disease
März 2009 The worm disease schistosomiasis is one of the biggest health risks to African children after malaria. Merck has committed itself to taking on responsibility: Merck-WHO partnership agreement to fight schistosomiasis together Merck provides free of charge 200 million tablets of Cesol® 600 (active ingredient: praziquantel) to fight schistosomiasis (total value: around USD 80 million) Altogether, this will permit the treatment of 27 million African school children Schistosomiasis: Parasitic worms are found in the freshwater of many tropical and subtropical countries. They multiply in the form of swimming eggs in certain water snails. Infection occurs when human skin comes into contact with fresh water contaminated by snails carrying the schistosome parasites, causing the spread of one of the most-feared infectious diseases: schistosomiasis. An estimated 250 to 300 million people are infected by the parasite and 600 million are at risk of infection. The parasite, which penetrates the skin, begins to travel through the body via the lymph and blood circulation, grows, multiplies and then lodges itself in the small vessels to produce eggs. In order for these eggs to reproduce, they must enter a hollow organ of the human host in closest proximity – the bladder or the colon. While migrating through tissue, they cause severe infections that can lead to chronic ulcers on the walls of the colon or bladder and even to calcification in the bladder. There are indications that chronic schistosomiasis can also lead to a higher incidence of bladder cancer. Normally, patients suffer damage to the kidneys, ureters and the bladder. The parasites residing in the colon area trigger severe diarrhea and can lead to enlarged spleen and liver, cirrhosis or ascites. Eggs that have been washed to the brain often trigger epileptic seizures. Left untreated, even mild schistosomiasis infections can severely impair the quality of life of those affected. Serious infection can often turn sufferers into invalids. . July 2009 Copyright Merck KGaA Corporate Communications

Social responsibility Fighting counterfeit drugs
März 2009 According to WHO, up to 10% of the drugs offered worldwide are either counterfeit or of deficient quality. This primarily affects people in developing countries. Merck remains the exclusive supporter of the Global Pharma Health Fund (GPHF) in the fight again counterfeit drugs in developing countries. The mobile compact laboratory GPHF-Minilab® makes it possible to test drugs rapidly Currently, 300 of these laboratory units are in use in 70 countries July 2009 Copyright Merck KGaA Corporate Communications

Social responsibility Cultural promotion
März 2009 The Merck Philharmonic Orchestra is the company’s musical ambassador: A very diverse concert repertoire Regular concert tours to many countries of Europe, Asia and Latin America The ensemble comprises up to 70 musicians “Musical Autumn”: Internationally renowned orchestras, ensembles and soloists complement the concerts of the Merck Philharmonic Orchestra at this highly acclaimed, cross-regional musical festival held every two years in Darmstadt July 2009 Copyright Merck KGaA Corporate Communications

Milestones in our history
März 2009 Merck is the oldest pharmaceutical and chemical company in the world 1827 Heinrich Emanuel Merck ( ) starts production on an industrial scale 1668 Friedrich Jacob Merck ( ) buys the Angel Pharmacy (Engel-Apotheke) Guarantee declaration from Emanuel Merck from a notebook into which business correspondence was copied (the red section below is what has been handwritten above). Notebook for copying correspondence, May 1851, p. 319 Hamburg N. Brandt u. Siemann factura [....] I must entirely refute your complaints concerning the impurity of my morphine with narcotine as the detection methods for this product do not permit this impurity. When my morphine is dissolved in water and some hydrochloric acid, it does not become turbid from a solution of double carbonic acid potash. However, it does become turbid when the double carbonic acid potash is not completely neutral or when the solutions are used in a highly concentrated state. I have therefore never considered this sample to be reliable. At all times, I have tested my morphine for narcotine using absolute ether, in which narcotine but not a trace of morphium dissolves. I herewith guarantee the purity of my preparations and undertake to reimburse you for any damage that may arise through one of my preparations being impure; for this I request that you have the morphium in question investigated by a competent chemist. July 2009 Copyright Merck KGaA Corporate Communications

Internationalization
März 2009 Internationalization Expansion of the product range: high- quality basic substances with “guaranteed purity” and, since 1904, finished pharmaceutical products as well Based on international success, subsidiaries were established in London (1883) New York (1887) Moscow (1899) Factory in the late 19th century July 2009 Copyright Merck KGaA Corporate Communications

Merck is not the same as Merck
März 2009 World War I led to expropriation of property and Merck & Co. – founded by a grandson of Heinrich Emanuel Merck – thus became an independent American company Today, Merck & Co. holds the rights to the name in North America, where we operate as EMD; we hold the rights to the name Merck in the rest of the world A research lab in the 1950s July 2009 Copyright Merck KGaA Corporate Communications

März 2009 Overview July 2009 Corporate Communications.

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März 2009 Overview July 2009 Corporate Communications.

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