Report on expected developments Audited

For 2010, Merck assumes that total revenues will grow between 3% and 7%.
The operating result is expected to increase by 20% to 30%. For 2011, we expect further increases – in both total revenues and operating result.

In the Annual Report for 2008, Merck stated that the overall economic environment could not be assessed and refrained from providing an outlook, explaining the reasons for this decision in last year’s Report on Expected Developments. The German Financial Reporting Enforcement Panel (Deutsche Prüfstelle für Rechnungslegung – DPR) expressed the opinion that our financial reporting was flawed since the Report on Expected Developments allegedly did not correspond to the requirements of the German Commercial Code. The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) concurred with the opinion of the Enforcement Panel. We are convinced, also in hindsight, that the paucity of attempts to provide an outlook at the beginning of 2009 justifies our decision. Merck has therefore appealed the decision of BaFin. The case has not yet been completed.

The situation has changed in the meantime. Yet the financial and economic crisis is far from over and many developments still lack continuity. At the present time, it is exceptionally difficult but no longer impossible to make forecasts, as doing so involves a high degree of uncertainty.