Corporate Strategies  Corporate Governance  Value Chain  International Strategy  Corporate Social Responsibility

Merck and Co. Inc.  HQ in Kenilworth, NJ  MRK on the NYSE  $53.72 on 11/27/15  Market Cap $150 B

Kenneth C. Frazier Chairman of the Board and Chief Executive Officer Executive Committee Robert M. Davis Executive Vice President and Chief Financial Officer Willie A. Deese Executive Vice President and President, Merck Manufacturing Division Richard R. DeLuca Jr. Executive Vice President and President, Merck Animal Health Julie L. Gerberding, M.D., M.P.H. Health Executive Vice President, Strategic Communications, Global Public Policy and Population Clark Golestani Executive Vice President and Chief Information Officer Mirian M. Graddick-Weir Executive Vice President, Human Resources Michael J. Holston Executive Vice President and General Counsel Roger M. Perlmutter, M.D., Ph.D. Executive Vice President and President, Merck Research Laboratories Michael Rosenblatt, M.D. Executive Vice President and Chief Medical Officer Adam H. Schechter Executive Vice President and President, Global Human Health

Board of Directors  Made up of 13 independent members plus the CEO serving as Chairman  Meets at least 7 times yearly  4 Standing Committees William B. Harrison, Jr. Lead director of the board

2014 Sales  Pharmaceutical Products $36.0 Billion  Animal Health Products$ 3.5 Billion  Consumer Care Products$ 1.5 Billion  Other Revenue$ 1.2 Billion  Total Revenue$ Billion

Revenues and R&D Spending

The Value Chain  16 Research and Development facilities  77 manufacturing plants  29 of them are for animal products  Merck Manual of Diagnosis and Therapy

International Strategy  Known as Merck Sharp and Dohme (MSD) outside the U.S. and Canada  Products are sold in 140+ countries  Seeking to develop the capacity and capability to serve a significant proportion of the world’s population  Has manufacturing and supply agreements with local manufacturing partners in Russia, China, Saudi Arabia, and Latin American countries  41% increase in products available through these international partnerships since 2013

International Revenue 2014  Total Revenue $42.2 Billion  U.S.$17.1 B  Europe, Middle East, Africa$13.2 B  Asia Pacific$ 4.0 B  Japan$ 3.5 B  Latin America$ 3.2 B  Other$ 1.4 B

Merck for Mothers  Mission is to reduce mortality rates in women  Accomplishes this through 75 partnerships in 30 countries.  Eliminating stock outs of modern contraceptives  Improving access to quality maternal care  Improving childbirth facilities  Training local health workers

Medicine and Vaccine Donation Partners  Patient Assistance Programs- U.S.  Medical Outreach Program  Mectizan Donation Program  African Comprehensive HIV/AIDS Partnership

Environmental Sustainability The following charts demonstrate our continued progress toward these goals. GoalTarget2014 Progress WaterDrive down water use 25% by 2020 vs baseline 20% reduction since 2009 ClimateReduce greenhouse gas emissions 15% by 2020 vs baseline 12% reduction since 2012 WasteContinuing to send less than 30% by weight of operational waste to landfills and incinerators through % of operational waste sent to landfills and incinerators without energy recovery

Recommendations  End CEO duality or add more insiders to the board  Increase R&D spending with a focus on emerging technologies to fix the problem with decreased revenues in future years  Continue to advance partnerships in emerging markets  Start a publicity campaign to highlight Merck for Mothers and other initiatives to fight against negative feelings towards Big Pharma