Segmentation was performed in accordance with the organizational and reporting structure of the Merck Group. Within the Merck Serono division, we focus on specialist therapeutic areas and market innovative prescription drugs of chemical and biotechnological origin. The Consumer Health division comprises Merck’s business with high-quality over-the-counter products for preventive health care and self-treatment of minor ailments. The Performance Materials division consists of the Liquid Crystals and Pigments & Cosmetics business units. The Merck Millipore division offers solutions to two key customer groups: research and analytical laboratories in the pharmaceutical/biotechnology industry or in academic institutions, and customers manufacturing large- and small-molecule drugs. The fields of activity of the individual divisions are described in detail in the sections about the divisions in the management report.
Corporate and Other includes assets and liabilities as well as income and expenses that cannot be directly allocated to the reportable segments presented; it serves the reconciliation to the Group numbers. The numbers mainly relate to Group functions. The cash flows attributable to the financial result and income taxes are also presented under Corporate and Other.
Apart from sales, the success of a segment is mainly determined by EBITDA pre one-time items (segment result).
Transfer prices for intragroup sales are determined on an arm’s-length basis. There were no significant intercompany relations between the business segments.
The Emerging Markets region was introduced in the information by country and region in order to appropriately reflect the importance that this region has acquired in our operating divisions. The Emerging Markets region comprises Latin America and Asia with the exception of Japan. The region “Rest of World” comprises Japan, Africa and Australia/Oceania.
Neither in 2012 nor in 2011 did any single customer account for more than 10% of Group sales.
The reconciliation of EBITDA pre one-time items of all operating businesses to the profit before income tax of the Merck Group was as follows:
| XLS |
|
|
|
| ||
|
€ million |
2012 |
2011 | ||
| ||||
|
Total EBITDA pre one-time items of the operating businesses |
3,175.4 |
2,871.3 | ||
|
Corporate and Other |
–210.5 |
–147.51 | ||
|
EBITDA pre one-time items of the Merck Group |
2,964.9 |
2,723.8 | ||
|
Depreciation and amortization / impairment losses / other |
–1,396.6 |
–1,598.8 | ||
|
One-time items |
–604.7 |
7.1 | ||
|
Operating result (EBIT) |
963.6 |
1,132.11 | ||
|
Financial result |
–254.6 |
–293.31 | ||
|
Profit before income tax |
709.0 |
838.81 | ||
The reconciliation of operating assets in the Segment Reporting was as follows:
| XLS |
|
|
|
| ||
|
€ million |
Dec. 31, 2012 |
Dec. 31, 2011 | ||
| ||||
|
Assets |
21,643.3 |
22,121.91 | ||
|
Monetary assets (cash and cash equivalents, current financial assets, loans, securities) |
–2,633.7 |
–2,082.7 | ||
|
Non-operating receivables, income tax receivables, deferred taxes and net defined benefit assets |
–1,173.3 |
–838.31 | ||
|
Operating assets (gross) |
17,836.3 |
19,200.9 | ||
|
Trade accounts payable |
–1,288.3 |
–1,100.8 | ||
|
Other operating liabilities |
–701.9 |
–633.5 | ||
|
Segment liabilities |
–1,990.2 |
–1,734.3 | ||
|
Operating assets (net) |
15,846.1 |
17,466.6 | ||
The investment result disclosed in the income statement in 2012 totaled € 0.6 million (2011: € 0.2 million) and was attributable to the Corporate and Other segment. In 2011, an investment result of € –1.2 million was attributable to the Merck Millipore division.
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