The Group reported a decline in the operating result (EBITDA pre one-time items increased 8.9% to € 2,965 million, or 27.6% of sales (2011: € 2,724 million, or 27.5% of sales). Merck Group | EBITDA pre one-time items by division – 2012 provisions more than offset reduced interest income due to low interest rate yields. In addition, gains related to the fair value of foreign exchange options benefited the financial result. Merck began using foreign exchange options as hedging instruments in the fourth quarter of 2011 and books fluctuations of corresponding fair values under the financial result. As a consequence, this line may continue to be impacted by the [...]

Overall our forecast assumes a moderate increase in energy and raw material prices, as well as increasing personnel costs. Since we produce specialty chemicals, the volatility of oil prices does not have a direct impact on our business. As a company that operates globally, Merck is exposed to a variety of foreign exchange risks, arising especially from the U.S. dollar. Targeted hedging measures are taken to offset these risks to a certain degree. Against the background of expected and the aforementioned overall economic developments, the Executive Board assumes that sales of the Merck Group will show moderate organic growth in 2013 and 2014. We do expect, however, [...]

Sales grow to exceed the € 10 billion for the first time driven by solid organic growth rates of the three largest divisions as well as changes from foreign exchange rates Strong operational performance while substantially advancing with the transformation of the company Good profitability and strong working capital management lead to increased free cash flow Merck Serono generates solid top and bottom-line results while implementing major restructuring programs and efficiency initiatives across global administrative functions, R&D operations and country organizations Performance Materials delivers exceptional performance driven by liquid crystal materials, [...]

XLS € million 2012 2011 Investment result from associates (equity method) – –1.2 Other investment income / expense 0.6 0.2 0.6 –1.0

XLS € million 2012 2011 1 Previous year’s figures have been adjusted, see Note Interest income and similar income 35.6 57.8 Interest expenses and similar expenses –221.9 –227.2 Interest component from currency hedging transactions –19.0 –17.0 Net interest –205.3 –186.4 Interest component of the additions to pension provisions and other non-current provisions –60.3 –74.91 Exchange rate differences from financing activities 11.2 –30.4 Income from financial interests –0.2 –1.6 –254.6 –293.31 Net interest amounting to € –205.3 million (2011: € –186.4 million) worsened in comparison with 2011 owing to lower interest income from cash [...]