Segment Reporting

Sales

1,305.9

1,235.9

3,991.3

3,695.5

124.7

122.8

344.9

333.0

Royalty and commission income*

87.6

82.8

259.5

256.8

0.3

0.1

1.5

1.6

Total revenues

1,393.5

1,318.6

4,250.7

3,952.3

125.0

122.9

346.4

334.6

Gross margin

1,199.8

1,099.4

3,605.1

3,327.0

86.3

86.6

237.5

231.2

Marketing and selling expenses*

–345.6

–315.0

–1,046.8

–970.7

–55.5

–51.3

–175.3

–151.7

Royalty and commission expenses*

–110.4

–102.3

–340.4

–295.4

–0.3

–0.3

–1.0

–1.1

Administration expenses

–66.9

–63.8

–198.2

–196.6

–6.9

–6.3

–18.8

–18.9

Other operating expenses and income

–39.4

–58.1

–159.3

–141.0

–0.9

–2.3

–10.7

–4.2

Research and development

–279.6

–293.2

–880.2

–867.4

–5.5

–4.2

–16.4

–12.8

Operating result

209.5

123.4

551.1

423.8

16.2

21.4

12.3

39.7

Exceptional items

–

–

–

–70.0

–

–

–

–

Earnings before interest and tax (EBIT)

209.5

123.4

551.1

353.8

16.2

21.4

12.3

39.7

Net operating assets**

–

–

10,672.8

10,015.9

–

–

343.6

336.0

Segment liabilities**

–

–

–1,143.6

–1,078.2

–

–

–78.2

–76.9

Capital spending on property, plant and equipment

53.8

71.9

161.8

192.9

1.1

1.7

3.4

6.9

Investments in intangible assets

11.9

22.0

35.3

53.4

0.2

0.1

1.0

1.0

Depreciation

–194.2

–188.8

–564.5

–563.1

–2.8

–3.0

–8.8

–7.0

Impairment losses

–0.8

–0.9

–18.0

–0.9

–

–

–

–

Net cash flows from operating activities

471.7

401.3

1,046.8

920.5

8.6

11.7

10.8

34.5

Net cash flows from investing activities

–61.3

–88.1

–187.5

–239.4

–0.9

–0.1

–4.5

–5.2

Free cash flow

410.4

313.2

859.3

681.0

7.7

11.5

6.3

29.3

Underlying free cash flow

410.4

313.2

859.3

681.0

7.7

11.5

6.3

29.3

FCR in %

29.5

23.8

20.2

17.2

6.1

9.4

1.8

8.8

ROS in %

15.0

9.4

13.0

10.7

13.0

17.4

3.5

11.9

Pharmaceuticals

EUR million

Q3
2010

Q3
2009

Jan.-Sep.
2010

Jan.-Sep.
2009

Sales

1,430.6

1,358.6

4,336.2

4,028.5

Royalty and commission income*

87.8

82.9

261.0

258.4

Total revenues

1,518.4

1,441.5

4,597.1

4,286.9

Gross margin

1,286.0

1,186.0

3,842.6

3,558.3

Marketing and selling expenses*

–401.1

–366.2

–1,222.1

–1,122.5

Royalty and commission expenses*

–110.7

–102.6

–341.3

–296.5

Administration expenses

–73.7

–70.1

–217.0

–215.5

Other operating expenses and income

–40.3

–60.4

–170.0

–145.2

Research and development

–285.1

–297.4

–896.6

–880.1

Operating result

225.7

144.8

563.4

463.5

Exceptional items

–

–

–

–70.0

Earnings before interest and tax (EBIT)

225.7

144.8

563.4

393.5

Net operating assets**

–

–

11,016.4

10,351.9

Segment liabilities**

–

–

–1,221.7

–1,155.1

Capital spending on property, plant and equipment

54.9

73.6

165.2

199.7

Investments in intangible assets

12.2

22.1

36.2

54.4

Depreciation

–196.9

–191.8

–573.3

–570.1

Impairment losses

–0.8

–0.9

–18.0

–0.9

Net cash flows from operating activities

480.4

413.0

1,057.6

955.0

Net cash flows from investing activities

–62.3

–88.2

–192.0

–244.7

Free cash flow

418.1

324.8

865.6

710.3

Underlying free cash flow

418.1

324.8

865.6

710.3

FCR in %

27.5

22.5

18.8

16.6

ROS in %

14.9

10.0

12.3

10.8

Sales

571.8

224.2

1,079.7

688.8

344.6

279.5

1,056.7

728.3

Royalty and commission income**

1.9

2.4

5.6

6.6

1.1

2.3

5.6

7.5

Total revenues

573.7

226.7

1,085.3

695.5

345.7

281.8

1,062.3

735.8

Gross margin

295.7

104.0

565.2

324.8

236.4

138.1

713.4

338.7

Marketing and selling expenses**

–141.3

–57.2

–271.7

–171.8

–29.9

–23.3

–85.5

–72.6

Royalty and commission expenses**

–3.2

–2.0

–6.5

–4.9

–1.9

–0.6

–7.5

–2.3

Administration expenses

–27.0

–10.2

–50.6

–32.8

–9.8

–7.3

–28.2

–25.9

Other operating expenses and income

–35.7

–5.9

–97.6

–15.9

–9.2

–5.6

–46.5

–26.6

Research and development

–30.9

–8.2

–46.0

–24.0

–32.5

–27.2

–92.1

–82.1

Operating result

10.0

20.2

45.2

74.6

151.9

72.6

449.4

125.0

Exceptional items

–

–

–

–

–

–

–

1.2

Earnings before interest and tax (EBIT)

10.0

20.2

45.2

74.6

151.9

72.6

449.4

126.2

Net operating assets***

–

–

6,493.1

781.2

–

–

1,259.1

1,176.3

Segment liabilities***

–

–

–348.7

–111.5

–

–

–145.3

–118.7

Capital spending on property, plant and equipment

23.6

13.1

45.5

37.4

19.5

14.1

42.9

53.5

Investments in intangible assets

2.1

0.7

4.3

3.6

0.7

0.4

2.1

5.0

Depreciation

–70.3

–11.8

–95.5

–34.0

–24.5

–20.5

–69.5

–63.1

Impairment losses

–1.6

–

–1.6

–

–

–7.8

–16.4

–8.0

Net cash flows from operating activities

29.9

56.1

95.5

143.1

184.0

131.2

468.0

242.3

Net cash flows from investing activities

–4,861.8

–12.4

–4,886.7

–38.5

–25.2

–33.3

–49.5

–77.0

Free cash flow

–4,831.9

43.7

–4,791.2

104.6

158.9

97.9

418.5

165.4

Underlying free cash flow

101.8

43.7

142.6

104.6

165.4

116.8

425.0

184.2

FCR in %

17.8

19.3

13.1

15.0

47.9

41.4

40.0

25.0

ROS in %

1.7

8.9

4.2

10.7

43.9

25.8

42.3

17.0

Chemicals

EUR million

Q3
2010

Q3
2009

Jan.-Sep.
2010

Jan.-Sep.
2009

Sales

916.4

503.7

2,136.4

1,417.1

Royalty and commission income**

3.0

4.8

11.1

14.2

Total revenues

919.4

508.5

2,147.5

1,431.3

Gross margin

532.1

242.1

1,278.6

663.5

Marketing and selling expenses**

–171.3

–80.4

–357.2

–244.4

Royalty and commission expenses**

–5.1

–2.6

–14.0

–7.2

Administration expenses

–36.8

–17.5

–78.9

–58.6

Other operating expenses and income

–45.0

–11.6

–144.1

–42.5

Research and development

–63.5

–35.4

–138.0

–106.2

Operating result

161.8

92.8

494.6

199.6

Exceptional items

–

–

–

1.2

Earnings before interest and tax (EBIT)

161.8

92.8

494.6

200.8

Net operating assets***

–

–

7,752.2

1,957.4

Segment liabilities***

–

–

–494.1

–230.2

Capital spending on property, plant and equipment

43.1

27.2

88.5

90.9

Investments in intangible assets

2.8

1.0

6.4

8.6

Depreciation

–94.8

–32.3

–164.9

–97.1

Impairment losses

–1.6

–7.8

–18.0

–8.0

Net cash flows from operating activities

213.9

187.4

563.5

385.5

Net cash flows from investing activities

–4,886.9

–45.8

–4,936.2

–115.5

Free cash flow

–4,673.0

141.6

–4,372.7

269.9

Underlying free cash flow

267.3

160.5

567.6

288.8

FCR in %

29.1

31.6

26.4

20.2

ROS in %

17.6

18.2

23.0

13.9

Sales

–

–

–

–

Royalty and commission income*

–

–

–

–

Total revenues

–

–

–

–

Gross margin

–

–

–

–

Marketing and selling expenses*

–1.0

0.5

–2.4

0.1

Royalty and commission expenses*

–

–0.1

–

-

Administration expenses

–17.4

–14.4

–51.6

–42.8

Other operating expenses and income

–5.7

–4.8

–21.3

–18.9

Research and development

–

–

–

–

Operating result

–24.1

–15.4

–73.6

–58.3

Exceptional items

–

–

–1.2

–

Earnings before interest and tax (EBIT)

–24.1

–15.4

–74.8

–58.3

Net operating assets**

–

–

25.1

37.4

Segment liabilities**

–

–

–17.6

–15.7

Capital spending on property, plant and equipment

0.3

0.1

0.6

–

Investments in intangible assets

1.6

2.2

4.9

7.6

Depreciation

–1.2

–0.4

–2.3

–1.3

Impairment losses

–

–

–

–

Net cash flows from operating activities

–136.2

–64.8

–318.1

–329.9

Net cash flows from investing activities

48.8

–35.9

1,384.8

–1,076.2

Free cash flow

–127.9

–67.4

–324.6

–338.0

Underlying free cash flow

–124.6

–55.8

–305.9

–326.4

FCR in %

–

–

–

–

ROS in %

–

–

–

–

Merck Group

EUR million

Q3
2010

Q3
2009

Jan.-Sep.
2010

Jan.-Sep.
2009

Sales

2,347.0

1,862.3

6,472.6

5,445.6

Royalty and commission income*

90.8

87.7

272.1

272.6

Total revenues

2,437.8

1,950.0

6,744.7

5,718.2

Gross margin

1,818.2

1,428.1

5,121.2

4,221.8

Marketing and selling expenses*

–573.3

–446.2

–1,581.7

–1,366.8

Royalty and commission expenses*

–115.8

–105.2

–355.3

–303.8

Administration expenses

–128.0

–102.0

–347.5

–316.9

Other operating expenses and income

–91.0

–76.8

–335.4

–206.6

Research and development

–348.6

–332.8

–1,034.6

–986.3

Operating result

363.5

222.2

984.4

604.8

Exceptional items

–

–

–1.2

–68.8

Earnings before interest and tax (EBIT)

363.5

222.2

983.2

536.0

Net operating assets**

–

–

18,793.7

12,346.7

Segment liabilities**

–

–

–1,733.3

–1,401.0

Capital spending on property, plant and equipment

98.3

101.0

254.2

290.6

Investments in intangible assets

16.5

25.4

47.6

70.7

Depreciation

–292.9

–224.5

–740.5

–668.3

Impairment losses

–2.4

–8.7

–36.0

–8.9

Net cash flows from operating activities

558.0

535.5

1,302.9

1,010.5

Net cash flows from investing activities

–4,900.5

–169.8

–3,743.4

–1,436.4

Free cash flow

–4,382.9

399.0

–3,831.7

642.2

Underlying free cash flow

560.7

429.5

1,127.3

672.7

FCR in %

23.0

22.0

16.7

11.8

ROS in %

14.9

11.4

14.6

10.6