Merck : FY 2021 Report (PDF)

Annual Report

2021

AT A GLANCE

A strong team

60,348

employees

Life Science

Together, we impact life and health with science.

Share of	Share of
net sales	EBITDA pre
46%	50%

Net sales per region

North America

€5,397 million

Latin America

€990 million

142	36%
nationalities	women in leadership positions
Healthcare	Electronics
We are helping to	We are advancing
create, improve and	digital living.
prolong lives.

Share of	Share of	Share of	Share of
net sales	EBITDA pre	net sales	EBITDA pre
36%	33%	18%	17%

Europe

€5,675 million

Asia-Pacific

€7,020 million

Middle East and

Africa

€605 million

KEY FIGURES 2021

Group

						Change
€ million		2021		2020		€ million			%
Net sales		19,687		17,534		2,152			12.3%
Operating result (EBIT)1		4,179		2,985		1,194			40.0%
Margin (% of net sales)1		21.2%		17.0%
EBITDA2		5,946		4,923		1,023			20.8%
Margin (% of net sales)1		30.2%		28.1%
EBITDA pre1		6,103		5,201		901			17.3%
Margin (% of net sales)1		31.0%		29.7%
Profit after tax		3,065		1,994		1,071			53.7%
Earnings per share (in €)		7.03		4.57		2.46			53.8%
Earnings per share pre (€)1		8.72		6.70		2.02			30.1%
Operating cash flow		4,616		3,477		1,138			32.7%

1. Not defined by International Financial Reporting Standards (IFRS).
2. Not defined by International Financial Reporting Standards (IFRS); EBITDA corresponds to operating result (EBIT) adjusted by depreciation, amortization, impairment losses, and reversals of impairment losses.

Group	Group
Net sales	EBITDA pre1
€ million	€ million

1 Not defined by International Financial Reporting Standards (IFRS).

To Our Shareholders

1. Letter from Belén Garijo

1. The Executive Board
2. Our Shares

Combined Management Report

14 Fundamental Information about the Group

14 The Group

24 Strategy

31 Internal Management System

38 Research and Development

51 Report on Economic Position

51 Macroeconomic and Sector-Specific Environment

55 Review of Forecast against Actual Business Development

63 Course of Business and Economic Position

63 Group

73 Life Science

77 Healthcare

82 Electronics

86 Corporate and Other

1. Report on Risks and Opportunities

1. Report on Expected Developments

108 Report in accordance with section 315a of the German Commercial Code (HGB)

1. Non-FinancialStatement

1. Compensation Report

189 Additional Information in accordance with the German Commercial Code (HGB)

Corporate Governance

200 Capital Structure and Corporate Bodies of Merck KGaA, Darmstadt, Germany

201 Statement on Corporate Governance

221 Report of the Supervisory Board

226 Objectives of the Supervisory Board with respect to its Composition and Profile of Skills and Expertise

Consolidated Financial Statements

230 Consolidated Income Statement

231 Consolidated Statement of

Comprehensive Income

232 Consolidated Balance Sheet

233 Consolidated Cash Flow Statement

234 Consolidated Statement of Changes in Net Equity

235 Notes to the Consolidated Financial Statements

235 General Disclosures

241 Group Structure

247 Operating Activities

265 Operating Assets, Liabilities, and

Contingent Liabilities

288 Employees

299 Capital Structure, Investments, and

Financing Assets

339 Other Disclosures

342 Scope of Consolidation

357 Responsibility Statement

358 Independent Auditor's Report

1. Business Development 2017-2021
2. Financial Calendar

6 Letter from Belén Garijo

1. The Executive Board
2. Our Shares