1、MeRck J.P.MorganHealthcare ConferenceJanuary 2024Disclaimer2Cautionary Note Regarding Forward-Looking Statements and financial indicatorsThis communication may include“forward-looking statements.”Statements that include words such as“anticipate,”“expect,”“should,”“would,”“intend,”“plan,”“project,”“s

2、eek,”“believe,”“will,”and other words of similar meaning in connection with future events or future operating or financial performance are often used to identify forward-looking statements.All statements in this communication,other than those relating to historical information or current conditions,

3、are forward-looking statements.We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the Private Securities Litigation Reform Act of 1995.These forward-looking statements are subject to a number of risks and uncertainties,many of whi

4、ch are beyond control of Merck KGaA,Darmstadt,Germany,which could cause actual results to differ materially from such statements.Risks and uncertainties include,but are not limited to:the risks of more restrictive regulatory requirements regarding drug pricing,reimbursement and approval;the risk of

5、stricterregulations for the manufacture,testing and marketing of products;the risk of destabilization of political systems and the establishment of trade barriers;the risk of a changingmarketing environment for multiple sclerosis products in the European Union;the risk of greater competitive pressur

6、e due to biosimilars;the risks of research and development;therisks of discontinuing development projects and regulatory approval of developed medicines;the risk of a temporary ban on products/production facilities or of non-registration ofproducts due to non-compliance with quality standards;the ri

7、sk of an import ban on products to the United States due to an FDA warning letter;the risks of dependency on suppliers;risks due to product-related crime and espionage;risks in relation to the use of financial instruments;liquidity risks;counterparty risks;market risks;risks of impairment on balance

8、sheet items;risks from pension obligations;risks from product-related and patent law disputes;risks from antitrust law proceedings;risks in human resources;reputational issuesrelated to ESG matters or our inability to reach our ESG aspirations;risks from e-crime and cyber attacks;risks due to failur

9、e of business-critical information technology applications orto failure of data center capacity;environmental and safety risks;unanticipated contract or regulatory issues;a potential downgrade in the rating of the indebtedness of Merck KGaA,Darmstadt,Germany;downward pressure on the common stock pri

10、ce of Merck KGaA,Darmstadt,Germany and its impact on goodwill impairment evaluations as well as the impact offuture regulatory or legislative actions.The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements

11、 that are included elsewhere,including the Report on Risks and Opportunities Section of the most recent annual report and quarterly report of Merck KGaA,Darmstadt,Germany.Any forward-looking statementsmade in this communication are qualified in their entirety by these cautionary statements,and there

12、 can be no assurance that the actual results or developments anticipated by us willbe realized or,even if substantially realized,that they will have the expected consequences to,or effects on,us or our business or operations.Except to the extent required by applicablelaw,we undertake no obligation t

13、o update publicly or revise any forward-looking statement,whether as a result of new information,future developments or otherwise.This presentation contains certain financial indicators such as EBITDA pre adjustments,net financial debt and earnings per share pre adjustments,which are not defined by

14、InternationalFinancial Reporting Standards(IFRS).These financial indicators should not be taken into account in order to assess the performance of Merck KGaA,Darmstadt,Germany in isolation orused as an alternative to the financial indicators presented in the consolidated financial statements and det

15、ermined in accordance with IFRS.The figures presented in this statement havebeen rounded.This may lead to individual values not adding up to the totals presented.Agenda0101Business overview0202Transforming the company0303Life Science Underlying market fundamentals remain intact0404Healthcare Focused

16、 leadership driving long-term growth0505Electronics Leveraging portfolio shift0606Sustainability0707Guidance&executive summary3Business overview5Merck GroupWho we are?Science is at the heart of everything we do.Every day,our morethan 64,000 employees work to advance human progress and makea positive

17、 difference to millions of peoples lives.We are a VIBRANT SCIENCE AND TECHNOLOGYCOMPANY Merck GroupThree innovative sectors serving patient and customer needsLife ScienceDiversified industry leaderProcess SolutionsLeading product portfolio for bioprocessing,novel templates,chemicals,and formulation

18、materials serving biopharma customersLife Science ServicesLeading contract testing organization and emerging CDMO offering focused end-to-end services across multiple modalities Science and Lab Solutions One of the industrys broadest portfolios of consumables for R&D and testing across diverse,attra

19、ctive customer segments HealthcareGlobal specialityinnovatorOncologyFocused leadership in SCCHN,mUC and mCRC.R&D focus on xevinapant in Ph3,DNA damage response and ADCsNeurology&ImmunologyCladribine in gMG moving into Ph3.Advancing innovation with Enpatoran in SLE and CLEFertilityBroad portfolio of

20、treatment options,devices and advanced fertility technologiesCM&ECardiovascular,Metabolism&Endocrinology90m patients using our medicines fordiabetes,thyroid,cardiovascular diseasesElectronicsLeading playerSemiconductor SolutionsIntegrated innovation leader with one of the strongest portfolios of mat

21、erials and related equipment and services.Supplying every player in the semi industry.Helping customers create NextGen,faster,smaller and more energy-efficient devices.Display Solutions Innovative materials for light switching and modulation as well as for new technologies such as augmented&virtual

22、realitySurface Solutions Pigments and active ingredients for automotive,cosmetic&industrial marketsAcronyms:SCCHN=Squamous Cell Carcinoma of Head and Neck;mUC=metastatic Urothelial Carcinoma;mCRC=metastatic Colorectal Cancer;ADC=Antibody-Drug Conjugates;Ph3=Phase 3;MS=Multiple Sclerosis;BTKi=Bruton

23、Tyrosine Kinase inhibitors;SLE=Systemic Lupus Erythematosus;CLE=Cutaneous Lupus Erythematosus;gMG=generalized Myasthenia Gravis6From:Merck Capital Markets Day 2022 2022.10.06Updated December 2023 47%35%Sales%of groupSales%of groupSales%of group18%Key Growth DriversMerck GroupWhat sets Merck apart-in

24、sights into the Strategic FrameworkII.DirectionEfficient growth of key growth drivers,further leveraged by M&AIII.Our DNALong-term focus driving innovation power.Reinforced by significant sustainability effortI.FoundationStrongly resilient and diversified business model.The foundation is key for our

25、 strategy with strong cash generationNew Strategic Framework introduced at CMD217From:Merck Capital Markets Day 2022 2022.10.06Updated November 2023 Merck GroupHolistic approach to resilience-backbone for sustainable growthLeading1Strong2Founda-tional3Lagging behind41Leading=Areas where industry-lea

26、ding capabilities and practices are demonstrated;2Strong=Advanced institutional capabilities and quality assured by effective practices consistently displayed;3Foundational=Fundamental capabilities and practices in place with repeatable processes and outcomes;4Lagging behind=Significant gaps in capa

27、bilities and/or systematic and effective practices,high dependency on individualsIn-depth analysis across allEnterprise Units revealed Group asstrongly resilient,building on asolid foundationStrong balance sheet and sufficient cash reservesLow business cyclicalityLower fixed cost exposureDiversified

28、 customer allocationSupply chain operationsDiversified manufacturingDemand robustness in economic downturn scenarioInflation adaptabilityHigh entry barriersHolisticPeer group specific8From:Merck Capital Markets Day 2022 2022.10.06Transforming the companyMerck GroupActing from a position of strengthM

29、ultiple near-term catalysts,returning to growth in 24 visible step-up for Life Science and Semiconductor Solutions aheadPoised for long-term growthbuilding on distinct and highly attractive megatrends Resilient and high-quality cashflow profilereliable cash generator throughout the cycleStrong track

30、 record in deal execution underlined by rapid deleveraging10Merck GroupAdded scale and strengthened attractiveness of portfolio11DivestmentsAcquisitions10 bn37 bnTransformation volume5+-divestedacquiredGrowth trajectoryFrom:September 2021 Roadshow PresentationUpdated February 20231Included since 2 M

31、ay 2014;22007 and 2014 EBITDA pre margin adjusted for comparability;32018 net sales reflect Consumer Health divesture(reduction of 1 bn net sales p.a.)42020 margin restated for 365 m patent litigation provision release;56%20%22%28%27%28%30%29%28%30%28%26%27%28%3

32、1%31%10%15%20%25%30%35%40%0572008200920000022Net sales bnEBITDA pre margin%Acquisition of MilliporeAcquisition of AZElectronic Materials1Acquisition of SeronoDivestment of GenericsAcquisition of Sigma-AldrichDivesture of Consumer HealthAcquisiti

33、on of Versum Materials234Merck GroupPoised for efficient mid-term and long-term growth Key Growth Drivers for Merck GroupEnd MarketsGlobal Life Science Industry5-7%1Global Pharma Industry3-6%212Revenue Contribution*Process Solutions/Life Science ServicesScience&Lab SolutionsOncologyNeurology&Immunol

34、ogySemiconductor Solutions70%of Sales contributed by Key Growth DriversKey Growth DriversOthersGlobal Electronics Industry5-7%3*Based on 2022 group revenue;1Company estimates of mid-term growth outlook based on industry forecasts and reports from public research institutes(e.g.IMF,IQVIA,Evaluate Pha

35、rma/EphMRA,Prismark,etc.);2Company estimates of mid-term growth outlook for global Pharma industry;3Company estimates of mid-term growth outlook for Semiconductor materials From:Merck Capital Markets Day 2023 2023.10.19Updated December 2023Merck GroupInnovation a key driver of future sales growthLev

36、eraging core competencies across business sectorsPromise to deliver faster and more accurate drug testing results compared to todays 2D approaches and to reduce animal testingEarly molecule discovery fueled by generative AI,enabled by Healthcare database For manufacturing excellence by design,maximi

37、zed quality process performance and supply chain resiliencePairing innovation with data and digital&AIDDISONTMOrganoidsSmart Manufacturing13One MeRckLife ScienceHealth-careElectronicsTo bring innovations faster to customers and patientsPooling&creating efficiencies across sectorsFrom:Merck Capital M

38、arkets Day 2023 2023.10.19Merck GroupFinancial flexibility fueling investment capacityAbundant growth opportunities make strategic capital allocation more important than ever Strong operating cash flow Strong financial capacity Small or larger acquisitions no prioritizationMore complex&multifaceted

39、CAPEX decisions requiring disciplineRich growth opportunities driven by demand step changes,e.g.Process Solutions capacity&network expansion,targeted scaling of high value CDMO/CTO services across traditional&novel modalitiesSemi capacity expansion in line with customer demand&smart localization,ahe

40、ad of recoveryAnnual capex guidance:from 1.6 bn in 2022 to 1.8-2.0 bn by 2023Clear focus on innovation&further development of pipeline productivityLife Science:accelerating targeted R&D scale-up to capture trends&strengthen portfolioElectronics:continuous alignment with customer technology roadmaps

41、incl.new R&D labsHealthcare:driving“R&D productivity”to benchmark levels with focused leadershipCAPEXR&DM&A50%higher investment*with key growth drivers capital allocation target of 70%M&A1R&DCapex2021-2025Investment bn share illustrationAccelerated deleveraging to 2x net debt to EBITDA pre ratio ena

42、bles unprecedented financial flexibility1M&A:Mergers and Acquisitions14*future M&A purely illustrative as it is deal-dependentFrom:Merck Capital Markets Day 2021 2021.09.09Updated November 2023Merck GroupInvesting through the cycle FY 2023 guidance implies decline in EBITDA pre Operational expense b

43、ase reflects confidence in future growth CAPEX responsibly managedoInvesting with mid-to long-term viewoFlexibility to react to changes in business environmentCAPEX1/sales ratio5.7%234567892002120222023EMid-longterm5.7%7.6%8-9%6.5%6.9%Development of key financials 2018 to 20231Based on gr

44、oss additions to Property,Plant and Equipment(PPE)on balance sheet(excl.leasing)in fiscal yearSales&EBITDA pre In bnMargins%SalesEBITDA pre3.84.45.26.16.814.816.217.519.722.2055050021202220.5 21.92023E5.8 6.415From:Merck Capital Markets Day 2023 2023.10.19Merck Group

45、Optimized capital allocation through distinct portfolio rolesCompetitive positionMarket attractivenessEvaluateInvest for LeadershipManage for CashEPUs in this category represent 1,200 colleagues in product/service development(incl.250 engineers,400 chemists,500 biologists)at over a dozen sites;.(2)D

46、igital:a)internal:supply replenishment;b)external:chat with a scientist,upgraded e-commerce platform,Bio4CTM From:Q2 2022 Roadshow PresentationHealthcareFocused leadership driving long-term growth.Growth driven by innovation,building on a solid established portfolioGlobal specialty innovatorMid-term

47、 guidance intact including Evobrutinib PhIII read-out.Focus to manage portfolio impact in 2027 Today*Mid-termMid single-digit CAGRcontribute 50%of growthnon-risk-adjusted illustrationLaunch wavesGrowth of first wave of launch products Bavencioand Mavenclad maturingSubsequent launches led by xevinapa

48、nt(IAPi)with a FIC potential aiming at setting up a new SoC in LA SCCHNSustainable long-term growth Expanding in N&I,developing cladribine in MG,enpatoran passing futility in SLEExecuting Oncology strategy with early phase DNA damage assets and ADCs32Launch wavesEstablished portfolio*Today defined a

49、s of 01 Jan 2023;1Company estimates on pharmaceutical market growth outlook based on industry forecasts and reports from public research institutes(e.g.3 to 6%in IQVIA Global Use of Medicines Report from January 2023).Acronyms:FiC=First in Class;BiC=Best in Class;IAPi=inhibitor of apoptosis protein;

50、LA SCCHN=locally advanced squamous cell carcinoma of head and neck;MG=myasthenia gravis;SoC=Standard of Care;SLE=systemic lupus erythematosus;ADC=antibody drug conjugateFrom:Merck Capital Markets Day 2023 2023.10.19Updated January 2024Profitable sales growth in line with global pharmaceutical market

51、1HealthcareCM&ECM&EOncologyOncologyFertilityN&I Mid single-digit growth Maximizing growth in Emerging Markets Further expansion by increased diagnosis and access to treatmentBavencioUC,RCC,MCC High single-digit growth driven by mUC 1LTepmetkoMETex14 NSCLC Targeted launch in niche indicationErbituxmC

52、RC,SCCHN Stable outlook,leading in mCRC continuum of care Mid single-digit growth,capitalizing on increasing awareness and access to treatmentMavencladMS On its way to become a blockbuster product.Some headwinds from IRA mid-termRebifMS Decline in line with interferon market 20192022mid-termTodays c

53、ommercialized products foundation for growth mid-term,fueled by recent launches;not yet reflecting further pipeline potential331 Commercialized products=Established Portfolio+Recent Launches,excludes future launches/indications until 2025;2 Graph excludes Consumer Health Business,Biosimilars Busines

54、s and others;3 Includes Bavencio(UC,RCC,MCC),Mavenclad,and TepmetkoMETex14Sales22017Established Portfolio Recent Launches3 illustrative2022mid-termCommercialized products1From:Q4 2021 Results Presentation 2022.03.03Updated May 2023HealthcareOncology-Cancer DNA Exploiting major vulnerability of tumor

55、 cells and striking them right at the coreATRiATMiDNA-PKiPARP1CEACAM5 ADCOther ADCsPeposertibADCDDRiChemo/radio sensitizers Collaboration agreement with licensing option with Nerviano Medical Sciences S.r.l.NMS-293Validated therapeutic approaches,with strong innovation potential:Ability to drive new

56、 standard of care:In all-comer indicationse.g.Xevinapant In biomarker-defined populationse.g.CEACAM-expressors,BRCA1 mut,ATMlossCombination potential:With current standard of caree.g.IAPi+chemo,ATRi+IO Utilize synergy within Mercks pipelinee.g.ATRi+ATMi,ATRi+ADCGuiding inorganic opportunities 34Acro

57、nyms:ATRi=ataxia telangiectasia and Rad3-related protein,inhibitor;ATMi=ataxia-telangiectasia-mutated protein,inhibitor;DNA-Pki=DNA-dependent protein kinase inhibitor;PARP1=Poly ADP-ribose polymerase 1;IAPi=Inhibitor of apoptosis inhibitor;CEACAM5=Carcinoembryonic antigen-related cell adhesion molec

58、ule 5;IO=Immunooncology;BRCA1=Breast cancer type 1 sus From:HC R&D Update Call 2022.11.21 Updated September 2023PIONEERING MS THERAPIES FOR 30 YEARSStrong presence in MS via Rebif and MavencladStrong presencein MSEXPAND IN NEUROLOGYFocus on rare neurological diseases where inflammation is the primar

59、y biology Expand into neurological areas that support focused leadershipOral CladribineDIVERSIFY WITH IMMUNOLOGYAccelerate discovery&development on targets with proven biology via novel modalitiesMaximize potential for TLR7/8 inhibitionEnpatoranN&I-StrategyGradual expansion on a solid foundation35Ac

60、ronyms:MS=Multiple SclerosisFrom:HC R&D Update Call 2022.11.21 Updated December 2023Strategies to expand our leadership positionGONAL-f The worlds most prescribed r-hFSH treatment1Growing prevalence of infertility driven by delayed parenthood and lifestyle habitsIncreasing awareness and access to tr

61、eatmentPergoveris:Only recombinant FSH+LH product in the marketDoubling sales and market share since 2017 Strong growth potential by geographical expansionInnovations&digital solutions(e.g.Philips partnership)Better treatment insights&improved convenienceContributing to higher live birth ratesStreng

62、thening our leadership in Fertility36Global Gonadotropin market in bn11Source:Based on internal analysis by Merck KGaA using global(75 countries)data from IQVIA Analytics Link for the calendar years 2018 to 2022 reflecting estimates of real-world activity.Gonadotropin market includes FSH,LH and hMG

63、products;other product classes used in Fertility treatment(hCG,Progesterone,GnRH-antagonist etc.)not includedFertility200212022+10%6%46%47%2.22.32.43.13.22021 sales growth inflated by catch-up effects due to COVID as low number of therapies in 2020MerckBiosimilarsOriginator competitorsFro

64、m:Merck Capital Markets Day 2021 2021.09.09 Updated August 2023Merck pipelineDecember 31,2023Pipeline products are under clinical investigation and have not been proven to be safe and effective.There is no guarantee any product will be approved in the sought-after indication.37HealthcareFrom:Q3 2023

65、 Results Presentation 2023.11.09Updated December 2023Phase 3Phase 11In combination with cisplatin and radiotherapy in unresected LA SCCHN patients eligible for cisplatin.2In combination with radiotherapy in resected LA SCCHN patients ineligible for cisplatin.3Combinations include Sacituzumab Govitec

66、an,NKTR-255 and M6223.4Studies as monotherapy and in combination with cemiplimab,niraparib,avelumab or M4076 ATMi.Includes studies(phase I/II)in collaboration with/sponsored by external partners,e.g.US National Cancer Institute(NCI).5Administered in combination with tuvusertib/M1774(ATRi).6Administe

67、red in combination,including combinations other than avelumab.7Clinical trial passed futility analysis.8Dermatomyositis and Polymyositis.9 EVOLUTION trial results(Dec 5th,2023)did not meet the primary endpoint of reducing annualized relapse rate(ARR).10 Registered study with open enrollment;subjects

68、 may not yet be enrolled.11Marketed products for information only.On October 30,Merck announced a collaboration with Jiangsu Hengrui Pharmaceuticals Co.Ltd.,China,including an exclusive license worldwide(ex-China)to develop,manufacture and commercialize the next-generation potent and selective PARP1

69、(poly(ADP-ribose)polymerase 1)trapping inhibitor HRS-1167.Unless noted otherwise,clinical programs conducted in collaboration with external partners are not shown unless Merck has co-ownership of data.In such cases the indication is shown in italics.evobrutinib (BTK inhibitor)9Relapsing multiple scl

70、erosisenpatoran(TLR7/8 antagonist)Cutaneous lupus erythematosus7Healthcare pipelineenpatoran(TLR7/8 antagonist)Systemic lupus erythematosus7RegistrationPh1a:phase 1a,dose finding;Ph1b:phase 1b,dose escalation/expansion and signal seekingAsset entering new phase10Previous phase(s)NeurologyOncologyImm

71、unologyGlobal HealthCurrent phaseenpatoran(TLR7/8 antagonist)Idiopathic Inflammatory Myopathies(DM and PM)8arpraziquantel(anthelmintic)Pediatric schistosomiasisM5717(PeEF2 inhibitor)MalariaM6223(anti-TIGIT mAb)Solid tumors6M9140(anti-CEACAM5 Antibody drug conjugate)Solid tumorsM4076(ATM inhibitor)So

72、lid tumors5tuvusertib/M1774(ATR inhibitor)Solid tumors4xevinapant(IAP inhibitor)LA SCCHN Unresected,cisplatin-eligible1xevinapant(IAP inhibitor)LA SCCHN Resected,cisplatin-ineligible2avelumab(anti-PD-L1 mAb)+combinations3Locally Advanced or Metastatic Urothelial CarcinomaPh1bPh1aPh1bPh1bPhase 2Futil

73、ity analysiscompletedRead out(Dec 2023):studies did not meet the primary endpoint of reducing ARRMarketed11ElectronicsLeveraging portfolio shift2005200820020Semiconductor growth megatrends drive demand for wafers and the materials needed to process themMore applications causeexplosion in

74、datadriving wafer volume step up39which requires more powerful chipsAI/ML1acceleratorsSensors,MEMs,DevicesMemory chips4:DRAM&3D NANDNetwork Chips(5G),Antennas&InterconnectsLogic chips4:CPUs,GPUs,ASICs,FPGAs,TPUs1)AI/ML=artificial intelligence/machine learning;2)IoT=internet of things;3)Statista;4)DR

75、AM=dynamic random-access memory,NAND=NOT AND,CPU=central processing unit,GPU=graphics processing unit,ASIC=application-specific integrated circuit,FPGA=field programmable gate arrays,and TPU=tensor processing unit;5)MSI=million square inches of silicon wafers;6)company estimatesGDP:+2.5%FY05-20 15y

76、avg.MSI5:+5.5%FY05-20 15y avg.indexed in 2005=100Anticipated mid-term step up:+5%to+7%CAGR605010 2013 2016 2019 2022 2025DATA:ZettabytesExponential data growth continues3AI/ML1acceleratorsBlockchainGenerative AI(e.g.ChatGPT)Sensors/IoT2AutomotiveWearables&devicesOur portfolio is mission c

77、ritical for the wafer fabrication process on which chips are builtCloud&big dataFrom:Merck Capital Markets Day 2021 2021.09.09Updated October 2023Semiconductor SolutionsModuleAssemblyEnd UsePackagingChip DesignPrototyping and TestingWafer Fabrication ProcessingInnovate and test material stack and pr

78、ocess to develop faster,more powerful,more efficient chips.Every chip is built through multiple steps.First,determine how circuits will be formed according to the design and use of the chip.Wafer is diced into individual chips,protected with resin and packaged to deliver.Finished chips are assembled

79、 into devices and shipped to consumers.Complex&precise multi-step process,to create the electronic circuits on a wafer,using chemical and physical process steps.Materials are implanted that change the characteristics and flow of electricity through the circuit.This changes the electrical characteris

80、tics and forms the semiconductor device.DopingSimilar to a photograph,light shines through photomask to depict the circuit design,transferring a pattern onto the wafer.A developer solution is then used to remove unnecessary resist.PatterningChemicals or impurities used during circuit formation are r

81、emoved from the wafer.The semiconductor circuits are formed.CleaningAlong the pattern formed by photo resist,unnecessary thin films are removed.The photo resist plays a protective role,leaving only the part that has been photosensitized.EtchingThin films(partly on single-atomic dimensions)of a broad

82、 variety of conducting or isolating chemical materials are deposited on the wafer.DepositionThe wafer is polished many times to flatten the surface and prepare for the next process step.PlanarizationThe Wafer Fabrication Process relies on advanced materials designed to enable each process stepMerck

83、is a critical enabler of the end-to-end semiconductor chip manufacturing lifecycle Mercks materials expertise in every step of the wafer process unlocks quality and precisionFrom:interim update Electronics presentation 2023.10.1940Semiconductor SolutionsPushing scientific boundaries to create the ne

84、xt generation of chips means increased material content per wafer41Miniaturization in Logic/DRAM increases process steps1,2and needs more materials3D NAND Stacking creates layers and needs more materialsLeading edge customers need innovative new materials36L48L64L96L128L176L230L300L400L500L500573563

85、7389401,1531,320130nm90nm65nm45/40nm32/28nm22/22nm)16/14nm10nm7nm)5nm3/2nmNode SizeProcess stepsLeading EdgeLeading Edge1)Process steps including:lithography,deposition,etching,doping,cleaning,patterning and planarization;2)Bardon et al.,DTCO including sustainability,IEEE/IEDM,2020;3)HPC=high perfor

86、mance compute,AI=artificial intelligence;4)MSI=million square inches of silicon wafersWe also serve specialty and trailing edge customers which have their own innovation requirements and focus areas contributing to outperformance of MSI4by+200 to+300bps Growth driven by HPC&AI3From:Merck Capital Mar

87、kets Day 2020 2020.09.16 Updated October 2023Semiconductor SolutionsMSISemi SolutionsStrategic partner to leading-edge customers with a comprehensive portfolio of relevant materials and equipment42Comprehensive portfolio across wafer processingResilient business model with partial semi cycle hedgePr

88、ojectsDeliveryEquipmentWafer starts increaseMaterials+ServiceRamp-up(after destocking)Merck ElectronicsComp AComp BComp CComp DStrategic partner to industryCustomer engagement at strategic and executive levelSynergistic business model across projects,delivery systems,delivery services and materialsE

89、nhanced business visibility andmarket intelligence Innovation and growth engine with industry leading marginsProjects&EquipmentThin-filmSpec.GasesPatterning&Cleans PlanarizationMany other regional or single product players.Good Medium Minor n.a.Our competitive offering further enables outperformance

90、 of MSI1by+200 to+300 bps over the cycleIllustrative1)MSI=million square inches of silicon wafersFrom:interim update Electronics presentation 2023.10.19Semiconductor SolutionsInvesting in the Innovation Pipeline to meet customer technology roadmap needs enables future growth43Attractive pipeline of

91、semi materials and the equipment needed to deliver themInnovation focus on winning new Process of Records with annuity income20252030+Lagging Edge&AnalogLeading EdgePoR Phase Pre-2021PoR Phase 2021-2025PoR Phase 2025+Typical 2-6 year material development cycle from identification to commercializatio

92、n,often developing patented intellectual propertyOnce material validation is complete and proof of concept is demonstrated,customer specifies a novel material in a PoR1Materials developed in close collaboration with customer R&D,technical and manufacturing teams aligned to their technology roadmapEl

93、ectronics invests 7-8%of sales in R&D with the majority in Semiconductor SolutionsMerck delivers highly innovative solutions for complex customer problemsIllustrative1)PoR=Process of Record,which are documents and/or systems that specify a series of operations that a semiconductor wafer must process

94、 throughFrom:interim update Electronics presentation 2023.10.19Semiconductor Solutions“Level Up”Scaling efficiently to fulfil industry requirements,when customers need it44579902020242026A partner of choice,in step for higher demand20026Investments synchronized with customer de

95、mandsOverall program remains,timing adjusted to customer plansCAPEX p.a.1 bnCAPEX illustrative for Electronics,majority in Semiconductor Solutions1)McClean November 2022,Company announcements;FX rate:1.18$/in 2021,1.05 in 2022;2)Run-rate of capex 300m in 2022 and press release announcing significant

96、ly over 1 bn of capex from 2021-25 from 2021;3)mainly in Semiconductor Solutions;4)Extrapolation of 7-10%Sales CAGR in Semiconductor Solutions from 2022Semiconductor industrySemiconductor SolutionsVersumMaterials+1.5X1.5XScaling the organization efficientlyInvesting 1.5 bn R&D in Electronics32021-25

97、;aligned to customer technology roadmapsFurther developing regionalization to serve customers as they support government investment across APAC,US and EUSecuring and developing talent regionally,across key competences in R&D,operations and salesProduction capacity aligned to customer plans;ramp up t

98、o support+40-50%4sales volume increaseCost discipline:utilize downturns to optimize efficiency and add scale in lockstep with customersPrepared to support customers as a strategic partnerOverall 2bn for level-upUpdated October 2023Semiconductor Solutions67%22%11%Electronics able to grow 3 to 6%CAGR

99、with the portfolio in transition4520224.0 bnSemiconductor Solutions7%to 10%growthSurface SolutionsLow single-digit growthDisplay SolutionsLow single-digit declineWell balanced exposure to coatings,cosmetics and industrials end marketsDrivers:rising living standards,higher disposable income in growin

100、g markets&higher demand for high value products at reasonable pricesLight vehicle recovery delayed with shortages;expected to reach 2019 levels around 2024 as shortages ease7;electric transition issues remainRelevant cosmetics end markets already well above 2019 levels;market expects continued struc

101、tural growth8Mid-term outlook2Fundamental growth driversBusiness Split3Sales split1Continued market growth due to technological advances that generate,transfer,store and process more data(AI/ML,5G,Big Data and cloud,IoT)serving customers in Logic,Memory,Packaging and others5 to 7%market growth4Outpe

102、rform market by+200 to+300bps:more material content per wafer,comprehensive portfolio and strategic partner to customersDriven by trend to bigger TV size,higher resolutions,more devices(inc.mobile,AR&VR)2 to 5%growth of total LCD m area5,while price pressure continues10 to 15%growth of total OLED m

103、area5with slight to moderate market share gainsOLED material market exceeded LC market for first time in 20226From:Merck Q1 2021 Roadshow PresentationUpdated October 2023MaterialsDS&SLCOLEDOtherCoatingsIndustrialsCosmetics1)Based on FY 2022,CAGR is organic mid-term ambition;2)growth rates are organi

104、c CAGRs;3)indicative only;4)Source:Merck estimate based on industry forecasts related to million square inches of silicon wafers;5)Source:Omdia Display Market Outlook,Q1 2023;6)Internal Business Intelligence;7)Sources:LMC Automotive Light Vehicles Forecast,June 2023;8)Sources:Euromonitor BPC(Beauty&

105、Personal Care)May 2023ElectronicsSustainabilityWe are committed to three overall sustainability ambitions47Dedicated tohuman progressIn 2030,we will achieve human progress for more than one billion people through sustainable science and technology.Creating sustainable value chainsBy 2030,we will int

106、egrate sustainability into all ourvalue chains.Reducing ourecological footprintBy 2040,we will achieveclimate neutrality and reduceour resource consumption.Sustainability cultureand valuesSustainable and transparent supply chainSecuring our social licenseto operate in all regionsSustainable innovati

107、onsand technology forour customersImpact of our technologiesand products on healthand well-beingClimate changeand emissionsWater andresource intensity12 3FocusSDGsFocusSDGsFocusSDGsOur focus areasOur focus areasOur focus areasFrom:Merck Capital Markets Day 2022 2022.10.06Updated November 2023Sustain

108、ability48Clear Metrics to drive execution and progress towards 2030 ambitionFrom:April 2022 presentationUpdated November 2023GoalMetric2022(2021)TargetPercentage of newly published patent families with positive sustainability impact27%(n.a.)n.a.People treated with our Healthcare products*174 mio(165

109、 mio)1 bn people ambition1:HCPercentage of women in leadership positions38%(36%)Gender parity by 20302Percentage of employees trained on sustainability83%(n.a.)n.a.Percentage of relevant suppliers covered by valid sustainability assessment*46%/82%(33/74)3visible increase by 2024Environment,Health an

110、d Safety(EHS)Incident Rate2.8(3.9)4As low as possibleViolations of Global Social and Labor Standards Policy68(41)5n.a.Lost Time Injury Rate(LTIR)1.2(1.2)61.0 by 2025Greenhouse gas emissions Scope 1+2*1,667 kt(1,843 kt)-50%by 20307Scope 3 intensity:kg Greenhouse gas emissions per gross profit0.48(0.4

111、6)-52%intensity by 20308Percentage purchased electricity covered by renewable resources47%(30%)80%by 2030Merck Waste Score(WS)-8.8%(-5.6%)-5%by 20259Merck Water Intensity Score(WIS)-8.6%(n.a.)-10%by 202510Wastewater quality:no harmful emission residuesProgress on track:Relevant sites identified100%c

112、ompletion by 2030111235confirmed violations 6accidents with min.1 day of missed work per 1 mio.man-hours7vs.2020 2,028 kt CO2e8vs.2020 0.48 intensity ratio(kg scope 3 emissions per gross profit)9vs.2016 WS 44310vs.2020 WIS considering local availability of water and no.of man-hours,w/o Gernsheim(reg

113、ulatory obligations)11below scientifically defined threshold 1incl.HC portfolio+praziquantel don.2considers room for non-binary people3by a)number,b)supplier spent,restated 2021 new risk assessment4incidents+severity vs.man-hours,restated 2021 using broader base*LTIP relevantSustainabilityDiverse hu

114、man capital:Thinking,talking,and leading differently4912,000active customers globally500 full-time employees in R&D25new product launchesUpstreamDownstreamFill&Finishsingle use systems&assemblies,aseptic filtrationcell culture mediaclarification,chrom.,virus,TFFPortfolioBioProcessingProcess&Formulat

115、ion MaterialsPortfolioBiopharma MaterialsFormulationupstream chemicals&growth factors(amino acids,vitamins,fatty acids)compendial chemicals for downstream&formulation(buffers,salts,stabilizers)Molecule Journeydrug productupstreamharvestpurificationdrug substanceNo single customer 5%of sales76Process

116、 Solutions-MarketParticipating in a structurally intact and attractively growing Biopharma marketSource:internal market models,Evaluate Pharma,Pharmacircle;Acronyms:mAbs=monoclonal Antibodies,Vax=Vaccines,R-Pro=Recombinant Protein,mol=molecule,ADC=Antibody Drug Conjugate,VGT=Viral Gene Therapy,CT=Ce

117、ll Therapy,mRNA=messenger Ribonucleic Acid,Ph=phase;*Today defined as of 01 Jan 2023Continued market attractiveness beyond transition period driven by traditional modalities paired with expected higher growth in novel modalities amid strong pipelinesNovels driving growthProcess products market in bn

118、 Diversified customer baseBy type,geography,modality 15%80%85%Today*Mid-Term20%NovelTraditionalCustomer splitPharma&Biotechs largest customer group,continue to provide the backbone for growth CTmAbVGTADCmRNA7004000Pre-clinicalCommercialPh IPh IIPh IIImAbs,Vax,Plasma,R-Pro,Small MolADC,VGT

119、,CT,mRNAGeographyAsia becoming a breeding-ground for biopharmaceutical companiesPipeline&on-marketDeep pre-clinical funnel in multiple modalities9-10%CAGR20%9%From:Q2 2022 Roadshow PresentationUpdated January 202477Process Solutions Customer FocusDifferentiating along the customer life cycle and cap

120、turing feedback to guide innovationHolistic customer engagement an important cornerstone to continued success in a dynamic market environmentTraining&support Tech service in every major language Customer training for product selectionQuality expertise 5 validation labs deployed regionally Regulatory

121、 expertise Emprove:24/7 online dossiers access for 400 raw materials and 20 single use&filter familiesProduct development 500 FTEs in R&D 25 new product launches Amplifications with LSS Products used for Life Science Services(LSS)offering Feedback for product developmentTechnical Collaboration 9 M L

122、abTMcollaboration centers globallyAll data based on FY 2022 except product launches based on 2021From:Q2 2022 Roadshow PresentationUpdated April 202378Process Solutions InnovationEnabling customers transformation towards Factory of the FutureCutting-edge innovation amplified by technology bolt-ons a

123、nd partnerships paving the way towards sustained leadershipExecutethe processControlthe processOptimizethe processMonitorthe processmAbs:Templated processNovels:Need for templateFacility of the Future (mAbs leading,finally all modalities)TodayFutureCustomer goals Batch modeIntensified/continuousManu

124、al,offline testingReal-time release testingSome automationPredictive&AdaptivePaper-based,siloedCloud-based,prescriptiveInnovation examplesProcess Pad&OrchestratorMAST auto sampling system Natrix Q MicroProcellics-Raman Spectroscopy Cellicon Perfusion Filter&Control PlatformCellvento HEK MediumFrom:Q

125、2 2022 Roadshow PresentationAcronyms:mAbs=monoclonal Antibodies,HEK=Human Embryonic Kidney79Life Science Services Footprint and Capabilities Global network with the ability to offer services across all stages of the molecules value chain Global footprintOverview of current CTDMO networkService offer

126、ingOverview of services across the molecules value chainAcronyms:CTO=Contract Testing Organization,CDO=Contract Development Organization,CMO=Contract Manufacturing Organization,CTDMO=Contract Testing Development Manufacturing Organization,mAbs=monoclonal Antibodies,HPAPI=High Potency Active Pharmace

127、utical Ingredient,ADCs=Antibody Drug Conjugates,CTs=Cell Therapies,VGTs=Viral Gene Therapies,.RNAs=Ribonucleic Acids,Dev.=Development,DS=Drug Substance,GMP=Good Manufacturing Practice,DP=Drug Product,Comm.=Commercial PreclinicPhase 1Phase 2Comm.Phase 3Cell Line dev.DS GMP Manufact.Fill&FinishProcess

128、 validationFormu-lationProcess dev.Characteri-zationLot releaseSchaffhausenShanghaiMartillacDarmstadt&HamburgRockvilleGlasgowBurlington MadisonCarlsbadSt.LouisSingaporeIndianapolisCDO/CMOCTODev.DSDPTestingGlobal CTDMO network with presence across key growth markets,offering scalable solutions and di

129、fferentiated services across six modalitiesPrimary ModalitiesmAbsHPAPItraditionalADCsVGTsCTsRNAsnovelFrom:Q2 2022 Roadshow PresentationUpdated April 202380Life Science Services Business Overview A multi-modality service offering across traditional and novel modalitiesCapabilitiesServing customers al

130、ong their molecule journeySnapshotBusiness in numbers1Well established CTO with comprehensive service offering and emerging CDMO focused on selected growth pockets with unique value proposition CDMOCTOSmall moleculesADCsmAbsVVsCTsmRNADev.DS Testing FocusComplex and high potentPotent conjugatesSingle

131、 use moleculesmRNAAll virus types All cell types DP Value propositionFlow chemistry and highly potent synthesisIntegrated supplier:payload to conjugationTemplate speed and flexibility in single useOne-stop shop and technical track record Capacity and scale,with full service offeringCapacity and expe

132、rtise across cell types60%of projects are novel modalities45%of sales from testing services800active customers globally50%of sales from large pharmaTop 10pharma companies are customersAvailable Limited Services 1 Based on FY 2022Acronyms:CTO=Contract Testing Organization,CDMO=Contract Development Ma

133、nufacturing Organization,Dev.=Development,DS=Drug Substance,DP=Drug Product,mAbs=monoclonal Antibodies,ADCs=Antibody Drug Conjugates,VVs=Viral Vectors,mRNA=messenger Ribonucleic Acid,CTs=Cell TherapiesFrom:Q2 2022 Roadshow PresentationUpdated April 202381Life Science Services Ambition Existing busin

134、ess the foundation for growth,ambition based on technology leadership across modalities Aiming to become a leading multi-modality service player that differentiates through best-in-class technologies able to offer flexible and fast solutions to customers VisionCTO FocusCDMO FocusShort term Mid term

135、Long term“Emerging multi-modality CDMO&leading CTO”“Full-service&focused multi-modality CTDMO”“Leading full-service&multi-modality CTDMO”Strengthen position for growthStrategycapacity&scalegeogr.footprintmanuf.templatesstrengthen novel offerFocus on flexible and fast track offeringsTechnology leader

136、ship for selected modalitiesExecute investmentsBuild scale&reachTemplate development&technology leadershipAdd global capacityDigitalization&automation Drive rapid methods adoptionStrengthen position for growthFrom:Q2 2022 Roadshow PresentationUpdated October 2022Acronyms:CDMO=Contract Development Ma

137、nufacturing Organization,CTO=Contract Testing Organization,CTDMO=Contract Testing Development Manufacturing OrganizationLab Water Lab water systems Consumables Services5%-15%DxRm Lateral flow membrane Critical raw materials Oligos&proligos Custom products&solutions10%-20%BioM QC and sterility testin

138、g instruments and kits Filters and plates Culture&growth media5%-15%Biology Multiplex kits Filtration tools Cell biology kits Antibodies25%-35%Chemistry Specialty chemicals Chrom.&solvents Reference materials Digital solutions(LanexoTM,SynthiaTM)30%-40%82Science&Lab Solutions PortfolioBroad portfoli

139、o consisting of five specialized portfolio units and franchises enabling a presence across workflows Trusted,innovative brands with podium positions driven by high-quality,customer-and application-focus,and deep sales expertiseKey productsNot comprehensiveSales splitFull value chain offers across se

140、gments enabled by technology-centric portfolio unitsAcronyms:DxRm=Diagnostics&Regulated Materials,BioM=Biomonitoring,Chrom.=Chromatography,QC=Quality Control From:Q2 2022 Roadshow PresentationUpdated April 202383Science&Lab Solutions Customers and Value Chains Serving full value chains of diverse cu

141、stomer segments with key customers including global leaders in their fieldsInnovative portfolio and broad footprint enabling to serve customers across value chains meeting needs of leading companies and organizationsDiagnosticsExample customers per segmentCustomer segments&value chains servedCustome

142、r universe1 Biopharma manufacturing applications addressed by Process Solutions and Life Science Services;Acronyms:R&D=Research&Development,QA/QC=Quality Assurance/Quality ControlR&DManufact.QA/QCIndustrial&TestingAcademiaPharma&Biotech1From:Q2 2022 Roadshow PresentationUpdated October 202284Science

143、&Lab Solutions Market and Performance Serving a large,resilient and growing market delivering stable revenue performanceServing diverse,attractive customer segments with robust growth from secular drivers protects from market shocks,fostering reliable organic growthDiagnosticsAcademiaIndustrial&Test

144、ingPharma&BiotechAll customer segments contributing to growthGrowing,aging population&healthcare needsIncreasingregulatory stringencyDigitalization&Automation of lab operations Selected DriversFY organic revenue growth(YoY,%)1Durable growth through COVID and geopolitical issuesTodayMid-termGrowing m

145、arket(120 bn,3-5%CAGR)Revenue stabilityMarket size(bn)Science&Lab Solutions20021Slow EU&China tariffsCOVIDimpactCOVIDrecovery2022COVIDshift to endemic12018-21 growth rates based on weighted average of former Research Solutions and Applied Solutions business unitsFrom:Q2 2022 Roadshow Pres

146、entationUpdated April 2023SLS offering&plansMost relevant customer segmentsSecular trends85Science&Lab Solutions Key Trends and Initiatives Addressing key industry¯oeconomic trends with innovative solutions and targeted investmentsWell positioned to deliver durable growth in a changing market en

147、vironmentIntegration of sustainability into all products&operations Broad QA/QC portfolio andhigh-quality raw materialsSolutions automating QA/QC&improving lab productivityInvestment in capacity to meet demand across portfolios Balanced global footprint;regional growth initiativesReputation&quality

148、support price increases;synergies contain costsPopulation growth&ageingSustainability across value chainRegulatorystringencyDigitalization&Automation Localization in emerging mkts.persistent high inflationPharma&BiotechDiagnosticsAll segmentsIndustrial&TestingPharma&BiotechIndustry trendsMacroeconom

149、ic trendsAll segmentsAll segmentsAll segments From:Q2 2022 Roadshow PresentationUpdated October 2022Acronyms:SLS=Science&Lab Solutions,QA/QC=Quality Assurance/Quality Control 86Science&Lab Solutions One-Stop Shop Approach Holistic offering to meet customer needs on their journeyWell equipped to deli

150、ght customers and strengthen position further Rapid innovation of new tech.Automated,digitalized workflows Strategic vendor relationships Tailored experience on&offline Supply security,local manufact.Transparency&diligent supportProductsPurchasingSupplyA leading portfolio including digital tools,cus

151、tom products&services;franchise R&D and product teamsOmnichannel approachincluding eCommerce,strategic relationship managers andtechnical teamsGlobal footprint and deep supply alignment;regionalcommercial excellence teams and innovative self-serve tools Full workflow solutions Application-specificit

152、y Rich product&app.data Online store&live support Quality and compliance Industry delivery metricsCustomer JourneyEstablished customer needsEmerging drivers of changeScience&Lab Solutions offeringFrom:Q2 2022 Roadshow Presentation87Sales development m-org.growth%YoY 1,1931,1391,02299487311%Q3 202210

153、%Q4 2022-4%Q1 2023-12%Q2 2023-23%Q3 2023Process Solutions:Core down-15%org.on destocking;COVID-19 headwinds Core development of-15%org.on seeing the expected trough on destocking in Q3 COVID-19 headwinds of-8%as expected;overall down-23%Order intake in Q3 declined y/y,but at meaningfully reduced sca

154、le compared to Q2 Book-to-bill improved slightly All key regions down org.,NA and Europe down in the low-to mid-double digits,APAC down in mid-to high-single-digitsFrom:Q3 2023 Results Presentation 2023.11.09Merck Q3 2023 Results Presentation|November 9,202388Sales development m-org.growth%YoY 24124

155、71881782063%Q3 2022-16%Q4 2022-7%Q1 2023-30%Q2 2023-10%Q3 2023 Core business growth of+12%org.with both contract testing and CDMO contributing Org.sales down-10%with sharp decline in COVID-19 sales COVID-related sales in Q3 benefitted from an end-of-a-contract penalty in the amount of a low-to mid-d

156、ouble-digit m amount Contract testing up at a high single-digit rate in the core org.amid soft early-stage biotechs and intense competition in China Europe up org.in the mid-single digits,NA and Asia down org.in the mid-to high-teens;other regions with only minor sales contributionLife Science Servi

157、ces:Core sales up+12%org.;COVID-19 headwinds From:Q3 2023 Results Presentation 2023.11.0989Sales development m-org.growth%YoY 1,2471,2201,2761,1821,1118%Q3 20224%Q4 20226%Q1 2023-1%Q2 2023-5%Q3 2023 Core business down-4%org.,mainly due to cautious spending environment,more visible in China,and compl

158、ex SAP migration COVID-19 business down,but again only with a slight negative impact of-1%;overall down 5%SAP impact mid-double-digit m in Q3,affecting production and distribution,mainly in US;expected to be resolved by year-end Softer demand from Pharma companiesmainly in North America and also in

159、China Labwater and Biomonitoring up in the low-single-digits,offset by a high-teens percentage decline in Diagnostics&Regulated Materials Europe was slightly up,while North America and APAC were down in the high-single digits;other regions only small contributorsScience&Lab Solutions:Sales down-5%or

160、g.;slight COVID-19 headwinds From:Q3 2023 Results Presentation 2023.11.09Life Science Q3:Core business down-8%org.with Process Solutions destocking;COVID-19 sales fading out as expectedLife Science P&LComments+0.0%Process Solutions:-15%org.decline in core business;overall PS org.sales decline of-22%

161、including anticipated pronounced COVID-19 decline Science&Lab Solutions:Core org.sales down-4%mainly due to suppressed demand,more pronounced in China,and SAP roll-out;with slight headwinds from fading COVID-19 resulting in-5%org.decline Life Science Services:Core org.growth of+12%supported by both

162、CTS and CDMO;with COVID-19 headwinds org.growth overall down-10%Lower M&S,Admin,R&D and other operating expenses reflecting cost discipline and efficiencies;operating expenses declining less than sales Sequential FX rates partially easing in North America and Asia EBITDA pre down-32%org.on lower sal

163、es and with negative mix effects impacting the gross margin2,681 m 2,191 m Q3 2022OrganicCurrencyPortfolioQ3 2023-13.2%-5.1%0.0%976 m 615 m Q3 2022OrganicCurrencyPortfolioQ3 2023-31.5%-4.8%-0.7%Net sales bridgeEBITDA pre bridgemIFRSPreQ3 2022Q3 2023Q3 2022Q3 2023Net sales2,6812,1912,6812,191M&S*-634

164、-556-629-555Admin-112-103-102-94R&D-106-90-106-90EBIT7EBITDA936601-EBITDA pre976615976615(in%of net sales)36.4%28.1%36.4%28.1%*Marketing and selling expensesTotals may not add up due to rounding90From:Q3 2023 Results Presentation 2023.11.09HealthcareHealthcareBuilding on a geographically

165、well-balanced footprint92Strong confidence in renewed R&D engineFranchises well adapted across geographies:Oncology and N&I focusing on developed markets.Broad footprint in Fertility.CM&E capturing developing market potential Innovation-driven growth in the US,Led by planned launch of xevinapantR&D

166、and BD priorities driven by US potentialContinued growth contribution of solid established portfolioToday0%10%20%30%LATAM+MEANorth AmericaAPACEuropeFuturepriority for long-term growth11Percentage of sales total Healthcare From:Merck Capital Markets Day 2023 2023.10.19Updated January 2024Healthcare-R

167、&D RoadmapBuilding on R&D focused leadership93Minimize risks by decorrelation,partnerships and co-developmentAreas of strong internal expertiseTherapeuticareasTechnologies SCCHN Colorectal cancer Neuroinflammation Multiple Sclerosis Track record in NCEs,NBEs Antibody drug conjugates Protein degradat

168、ion Bi-specificsAcronyms:DDR=DNA damage response;SCCHN=Squamous cell carcinoma of head and neck;NCEs=Novel Chemical Entities;NBEs=Novel Biological Entities focused leadershipFrom:HC R&D Update Call 2022.11.21Updated December 2023Underlyingbiology DDR Apoptosis Innate immunity T-cell modulationLevera

169、ging our long-lasting expertise in SCCHN3External studies and Real-World Data2XRay Vision(PhIII)6Global,recruiting 1TrilynX(PhIII)6Global,recruitingSegmentDiseaseTreated stage III&IVA/B SCCHN patients(total 110K patients)1UnresectedResectedPatients in treatment*40K pts23K pts23K pts10K ptsCis-eligib

170、lecis-elig.Cis-ineligiblecis-inelig.Int riskLow riskCurrent SOCCisplatin/RTCisplatin/RT RTRT/no txChemo/RT,Erbitux/RT,RTCisplatin/RTCT/RT,RTHigh risk 18 pts1Treated patient numbers are for US and EU combined(Kantar/Cerner Enviza 2021);2Denaro N,et al.Clin Exp Otorhinolaryngol.2016;9(4):287-297.;3Ahn

171、 J-S,et al.Cancer Res Treat.2007;39(3):93-98.;4NCCN Clinical Practice Guidelines in Oncology.Head and Neck Cancers.v1.2021.;5Machiels JP,et al.Ann Oncol.2020;31(11):1462-1475.6Global trials,including strong presence in China and Japan;*Global trials,including strong presence in China and Japan Treat

172、ment paradigm of LA SCCHN9420yrsof limited progress in SOC,including failed trials of immunotherapy 4,550%with recurrence and/or distant metastasis within 2 years of RT-based curative treatment for LA SCCHN 2.3Acronyms:SCCHN=squamous cell carcinoma of head and neck;LA SCCHN=locally advanced squamous

173、 cell carcinoma of head and neck;RT=Radiotherapy;SOC=Standard of careOncology-XevinapantFrom:HC R&D Update Call 2022.11.21Updated December 2023CLADRIBINEENPATORANXEVINAPANTTUVUSERTIBM9140Selected efficacy endpoints Phase II:Consistent improvement across all efficacy endpoints with no compromise in d

174、elivery of backbone chemoradiotherapy(CRT)PhII:Double-blind,multi-centre,randomized trial1R 1:1Xevinapant+CRTPlacebo+CRTHigh-risk LA SCCHN(non-metastatic st.III-IVa-limited IVb)Untreated for invasive disease(N=96)Xevinapant 200 mg qd on D1-14 of 21-day cycles,for 3 cyclesCisplatin 100 mg/m iv once e

175、very cycle for 3 cycles(D2,D23,D44)IMRT delivered to primary tumour+involved nodes,to a total dose of 70 Gy(2 Gy daily fractions;5 days per week x 7 weeks)Efficacy Endpoint Xevi+CRTPbo+CRTLCR at 18mo(primary endpoint)54%33%OR 269 113-642,p=0026PFS(3-year analysis)NR16.9mo HR 0.340.17-0.68,p=0.0023Do

176、R2(3-year analysis)NR17.3moHR,0.210.08-0.54,p=0.0011OS3(3-year analysis)NR36.1 mo HR,0.49 0.26-0.92;P=.0261)Combination tolerability profile Category of AEsXevi+CRTPbo+CRTAny TEAE100%100%Gr 385%87%Serious AEs63%60%Fatal AEs04%Late toxicity(mostly gr.1-2)73%66%Delivery of CRT Treatment Xevi+CRTPbo+CR

177、TMedian dose of Cis(mg/m2)288288Pts with 2cycles of Cis(%)8883Pts with all 3 cycles of Cis(%)5853Median cumulative dose of RT(tumor/lymph nodes),Gy70/51.870/51.81Sun XS,et al.Lancet Oncol.2020;21(9):1173-1187;2Bourhis J.et al.Ann Oncol 2022;33:S1400.Oral presentation at ESMO 2022(LBA33);3Bourhis J.e

178、t al.Ann Oncol(2020)31(suppl_4):S1142-S1215.Acronyms:AE=adverse event;NR=Not reported;CRT=Chemoratiotherapy;LCR=Locoregional control;PFS=Progression-free survival;DoR=Duration of Response;OS=Overall survival;OR=Overall response95Oncology-XevinapantFrom:HC R&D Update Call 2022.11.21Updated December 2

179、023CLADRIBINEENPATORANXEVINAPANTTUVUSERTIBM9140Phase III program on track to deliver on a blockbuster potential Oncology-XevinapantR 1:1Xevinapant1+RTPlacebo+RTPrimary endpoint:disease-free survival XRay VisionExpanding population to resected LA SCCHN Resected high-risk LA SCCHN Ineligible for cispl

180、atin(N=700)R 1:1Xevinapant1+CRTPlacebo+CRTPrimary endpoint:event-free survival TrilynXConfirming PhII results in unresected LA SCCHNUnresectedLA SCCHNSuitable for definitive CRT(N=700)202242025IA(NCT04459715)(NCT05386550)250+sites across 26 countries,including China and JapanStudy nearing

181、 enrollment completionIA event-driven 200+sites across 22 countries globally,incl.China and Japan Study initiated Q3/2022 2026PA961Xevinapant administration:3 cycles of oral solution at a dose of 200 mg/day once daily from Day 1 to 14,per 3-week cycle in combination with CRT/RT followed by 3 cycles

182、of Xevinapant monotherapyAcronyms:AE=adverse event;NR=Not reported;CRT=Chemoratiotherapy;LCR=Locoregional control;PFS=Progression-free survival;DoR=Duration of Response;OS=Overall survival;OR=Overall response;IA=Interim AnalysisFrom:HC R&D Update Call 2022.11.21Updated December 2023CLADRIBINEENPATOR

183、ANXEVINAPANTTUVUSERTIBM9140Unique portfolio of DDR inhibitors testing three distinct hypothesesto enhance tumor cell killingOncology-DNA Damage Response(DDR)M1774M4076PeposertibDifferent types of DNA damage are repaired by different mechanisms Key proteins involved are PARP,ATR,ATM,and DNA-PKDDR inh

184、ibitors accumulate DNA damage,leading to cancer cell deathAmplify DNA damage-inducing chemotherapy and radiotherapySelectively kill tumors with DDR mutations(Synthetic Lethality)Activating immune response(through activation of cGASSTING innate immune pathway and type I IFN signaling)Acronyms:HR=homo

185、logous recombination;NHEJ=non-homologous end joining;PARP=Poly ADP-ribose polymerase;DNA-PK=DNA-dependent protein kinase;ATM=ataxia-telangiectasia-mutated protein;ATR=ataxia telangiectasia and Rad3-related protein 97NMS-293Collaboration agreement with licensing option with Nerviano Medical Sciences

186、S.r.l.NMS-293From:HC R&D Update Call 2022.11.21Updated December 2023CLADRIBINEENPATORANXEVINAPANTTUVUSERTIBM9140Exploring combination potential of tuvusertib(M1774)in a broad DDRiver development programOncology-DNA Damage Response(DDR)Part A1 dose escalation:MTD,RDE,PK and PD of tuvusertibPart A3:tu

187、vusertib(M1774)in patients with key loss-of-function mutations(ARID1A,ATRX and/or DAXX,and ATM)Part B:tuvusertib(M1774)in combination dose finding with niraparib(PARPi),advanced solid tumoursPart A2:food effect Tuvusertib(M1774)+M4076(ATMi)dose finding in solid tumoursTuvusertib(M1774)+Avelumab in s

188、olid tumoursDDriver Solid Tumors 301 NCT04170153Nov 2022Synthetic lethality Activation of immune response Synthetic lethality Synthetic lethality Tuvusertib+ADCs options 2023Tuvusertib+IO options Activation of Immune response Amplifying effect of chemo2023+Acronyms:PK=Pharmacokinetics;RDE=Recommende

189、d Dose for Expansion;NR=Not Reported;MTD=Maximal Tolerated Dose;PD=Pharmacodynamics;ARID1A=AT-Rich Interaction Domain 1A;ATRX=AT-Rich Interaction Domain 1A;DAXX=Death-associated protein 6;ATMi=ataxia-telangiectasia-mutated protein,inhibitor;PARPi=Poly ADP-ribose polymerase inhibitor;ADC=Antibody-dru

190、g conjugates;IO=Immunooncology;ATM=ataxia-telangiectasia-mutated protein 98DDRiver Solid Tumors 320(recruiting)NCT05396833From:HC R&D Update Call 2022.11.21Updated December 2023CLADRIBINEENPATORANXEVINAPANTTUVUSERTIBM914099PayloadLinkerMercks ADC technology addresses the limitations of first-gen ADC

191、sOncology-Enabling Technologies:ADCsMany opportunities to enhance targeted delivery of chemotherapy to tumor cells.Merck HC pipeline includes several pre-clinical and 1 clinical asset(M9140).Mono&bispecific internalizing binders Designed physiochemical propertiesAntibody Tumor-specific linker cleava

192、ge Site-specific conjugation technologies Next-generation cytotoxic and immune-mod.payloads DNA-alkylators and TOP1 inh.fit with DDR ambitions Unfavorable target expression Suboptimal half-life and internalization Unstable linkers,unspecific cleavage Undefined mixtures from conjugation step Too pote

193、nt and toxic payloads Tumor-resistant payloadsFirst generation ADCsMercks ADC PlatformAcronyms:ADC=Antibody-drug conjugates;DDR=DNA damage responseLow therapeutic windowsImproved therapeutic benefitsFrom:HC R&D Update Call 2022.11.21Updated December 2023CLADRIBINEENPATORANXEVINAPANTTUVUSERTIBM9140Di

194、fferentiation Scientific Rationale TOP1 inhibitor(exatecan)payload optimized for tumors with target expression&sensitivity to TOP1iCEACAM5 is expressed in CRC,GC/GEJ,lung&other cancers with low expression in normal tissues,making it an ideal targetCEACAM5 expression Dose ADose BCEACAM5 Tubulin PLbas

195、ed ADCCEACAM5 Tubulin PLbased ADCCEACAM5 Tubulin PLbased ADCSuperior pre-clinical efficacy vs antimicrotubule payload(ravtansine)ADCs Synergistic potential and durable efficacy with DDRiM9140 vs DM4 ADCOncology-Antibody-Drug ConjugatesM9140:specifically designed to fight CRC and other GI cancers,wit

196、h optionality in additional tumors100Phase I study ongoing NCT05464030DL1DL3DL53L mCRC(n=21-30)3L/4L mCRC3L/4L GC/GEJ with high CEACAM5 expression 20232024Global Phase I initiated in Q3 2022Dose escalation Dose expansion Acronyms:ADC=Antibody-drug conjugates;RDE=Recommended Dose for Expansion;NR=Not

197、 Reported;CRC=Colorectal cancer;GC=Gastric cancer;GEJ=Gastric and gastroesophageal junction;TOP1i=Topoisomerase inhibitor type 1 inhibitor;DDRi=DDR DNA damage response inhibitors;GI=Gastrointestinal;CRC=Colorectal cancer;CEACAM5=Carcinoembryonic antigen-related cell adhesion molecule 5 From:HC R&D U

198、pdate Call 2022.11.21Updated December 2023CLADRIBINEENPATORANXEVINAPANTTUVUSERTIBM9140 For lupus patients,precise intervention for improved efficacy at low infection risk remains an unmet need in lupus Enpatoran is an oral small molecule inhibitor of TLR7/8 There is evolving genetic evidence for TLR

199、7 as a critical driver of lupus pathologies101Inhibition of TLR7/8,a important lupus mediator is expected to result in broad inhibition of lupus-relevant effectors with potential for improved efficacy compared to strategies targeting single effectors(pDC,IFN,B-cells)at low risk of infection Compelli

200、ng MoA,functional and safety data from PhI HV and COVID PhII study Innovative PhII in CLE and SLE initiated in H1 2022;positive futility analysis completed in H2 2023.Targeted inhibition of important lupus mediator aiming for improved efficacy with low infection riskFrom:R&D Update Call 2021 2021.11

201、.22Updated December 2023CLADRIBINEENPATORANXEVINAPANTTUVUSERTIBM9140N&I-Enpatoran PoC study in dermatomyositis and polymyositis Started in early 2023N&I-EnpatoranAn oral therapy with novel MoA and potential for a steroid-sparing effect could be transformative for myositis patients G7 prevalence of 1

202、00 120K Debilitating autoimmune disease,characterized by muscle weakness,fatigue and disability Patients show lupus-like patterns of immune activation and TLR7/8 expression High unmet need for effective treatment options:Large proportion of patients refractory to SoC high dose CS/immunosuppressantsD

203、evelopment RationaleNeptunia Study102Acronyms:PoC=Proof of Concept;MoA=Mode of Action;SOC=Standard of careExpansion into myositis,First-in-Class PotentialFrom:HC R&D Update Call 2022.11.21Updated December 2023CLADRIBINEENPATORANXEVINAPANTTUVUSERTIBM9140103Acronyms:SD=Standard Deviation;MG=Myasthenia

204、 Gravis Redjak K et al.Eur J Neurol 2019.https:/doi:10.1111/ene.14124.N&I-CladribineDevelopment Rationale Myasthenia gravis is a neuromuscular disease with high unmet need There is potential for a highly differentiated therapy that can deliver high efficacy and convenience with an oral short-course

205、treatment cycle Initial supportive clinical data availableClinical study planned for early 2024s.c.Cladribine Open Label Study in MGCladribine going beyond multiple sclerosisFrom:HC R&D Update Call 2022.11.21Updated December 2023CLADRIBINEENPATORANXEVINAPANTTUVUSERTIBM9140Healthcare Q3:Organic growt

206、h of+7%supported by all franchises Oncology up+18%org.,driven by continuous growth of Bavencio(+22%org.)across all regions and supported by Erbitux(+13%org.)Mavenclad+3%org.,US driving growth partially offset by Europe.Rebifdeclines-25%org.amid PY channel dynamics yielding tougher comps Solid growth

207、 of established portfolio driven by Fertility(+14%org.)boosted by competitors stock-outs and CM&E(+7%org.)Constant productivity efforts drive M&S decline in%of sales R&D lower in absolute terms;mid-term ambition of low twenties remains unchanged Currency impacts mostly driven by major businesses in

208、APAC and North America EBITDA pre margin in line with H123,supported by positive product mix and cost disciplineHealthcare P&LCommentsmIFRSPreQ3 2022Q3 2023Q3 2022Q3 2023Net sales2,0892,0662,0892,066M&S*-413-406-412-400Admin-84-79-79-74R&D-431-391-409-391EBIT606653635615EBITDA683723-EBITDA pre711685

209、711685(in%of net sales)34.0%33.2%34.0%33.2%2,089 m Q3 2022OrganicCurrencyPortfolioQ3 20237.4%-8.5%0.0%2,066 m711 m 685 m Q3 2022OrganicCurrencyPortfolioQ3 202317.2%-20.8%0.0%Net sales bridge*Marketing and selling expensesTotals may not add up due to roundingEBITDA pre bridge104From:Q3 2023 Results P

210、resentation 2023.11.09Electronics.ElectronicsContinued progress on“Level Up”as market reaches inflection point3 to 6%CAGRA leading playerToday1Mid-termInvesting in“Level-up4”program to build the innovation and production capacity to support secular growth in SemiconductorsSemiconductor SolutionsCAGR

211、 of 7%to 10%driven by+200 to+300bps3growth above MSI(5%to 7%)Display SolutionsCAGR of low single-digit declineSurface SolutionsLow single-digit growth CAGRDelivering on Level UpMajor capacity expansions in sync with customer CAPEXR&D investment alongsideefficient OPEX scalingHighly complementarybolt

212、-on acquisitionsvast majorityof growth2106Semiconductor Solutions portfolioRemainingportfolioIllustration1)Today defined as of 01 Jan 2023;2)Illustrative split by semiconductor solutions technology platform;3)Basis points;4)As announced in press released dated 20.09.2021From:Merck Capital Markets Da

213、y 2023 2023.10.19Technology roadmap:expanding limits of going smaller,stacking more layers and complex new architectures107New logic architecturesDeposition challenge2Vertical stackingComplex 3D DRAM layers4As lines get narrower and closer together in advanced chips,patterned lines tend to“stick tog

214、ether”during processing due to high surface tension.Merck EUV1rinse materials offer ultra low surface tension to prevent collapse.New architectures like nanosheet stack lateral silicon sheets on top of each other with the gate wrapped around.Materials added and removed without line of sight,needing

215、Merck Thin-Film technologies like ALE/ALD/CVD3.Building these high-aspect ratio skyscrapers with several hundred levelsrequires strength and stability.They require Mercks Thin-Film CVD and ALD materials and drilling high AR channels requires pattern transfer hard mask materials and etch gases from M

216、ercks Spec.GasesMiniaturization Prevent pattern collapseMerck delivers highly innovative solutions for complex customer problemsHigh aspect ratios100s of layers in 3D NAND5FinFETNanosheet3D NANDStacked 3D DRAM layers to selectively add&remove materials inside a complex matrix of intertwined layers w

217、ithout line of sight;Merck Thin-Film tech like ALE/ALD/CVD3and Spec.Gases are in R&D as enablers.1)EUV=Extreme UltraViolet lithography;2)Deposition picture from IBM blog:https:/ 3)Thin-Film materials include ALD=selective Atomic Layer Deposition,selective Atomic Layer Etch,and CVD=flowable Chemical

218、Vapor Deposition;4)3D DRAM in development stage;5)92 layer 3D NAND die cross section,3D NAND leading-edge applications have hundreds of layers,source:IEEEUpdated October 2023Semiconductor SolutionsAI is the most important growth driver of the semi market;well positioned by serving key players108Edge

219、Cloud/Data centerApple A15processorNvidia H100AI acceleratorAI is becoming part of every electronic deviceAI has high value,but still small volume10%share of semiconductor market size,but only0.1%of all produced devices2AI segment is outpacing the semiconductor market1*1)Source:Gartner,H1/2023,reven

220、ues from all chips with dedicated AI functionality excluding memory,Generative AI from latest revised July forecast 2)In 2023,excluding discrete electronics,source:GartnerCAGR(19-27):+7-8%Semi:+31%AI:Our key customers are shaping the AI market90%6%3%97%201912%94%202110%202388%202516%84%2027420598536

221、721761OtherAIFrom:interim update Electronics presentation 2023.10.19Semiconductor SolutionsStrategic Partner to semiconductor manufacturers globally109Delivery systems Delivery systems&services&servicesWinning in the sub-fab1with facility engineersSemiconductor Semiconductor MaterialsMaterialsWinnin

222、g in the fab1with process ownersFab1material market 2Fab1equipment market 3One fab address=two customers:buying cycles,interfaces&nature of business fundamentally different,but combined,highly synergistic923E2122E24E+4.9%181124E0521040623E0742E+

223、5.6%1)Fab=semiconductor fabrication plant,sub-fab is one level below the factory floor in a fab;2)Source LINX-Consulting,wafer processing materials-excludes silicon wafers and packaging materials;3)Source:Gartner;4)2004-2024 20-year CAGR44From:Merck Capital Markets Day 2020 2020.09.16 Updated Octobe

224、r 2023Semiconductor SolutionsWafer processing offers highest value creation potential in value chainUnique comprehensive products and services portfolio offers end-to-end solutions,well-placed in high growth segments110ModuleAssemblyEnd UsePackagingChip DesignEtchingCleaningDopingDepositionPatternin

225、gPlanarizationPrototyping and TestingServiceProjectsDeliveryMerck Delivery Systems&Services offeringMerck Semiconductor Materials offeringMerck Intermolecular products&servicesSteps of Merck customers in manufacturing ChipsSteps in Mercks Delivery Systems&Services business From:Merck Capital Markets

226、 Day 2020 2020.09.16 Updated October 2023Semiconductor SolutionsComprehensive materials portfolio across all relevant technologies in the wafer processing market111PlanarizationThin FilmsSpecialty GasesPatterningWafer processing steps where materials are neededEtchingCleaningDepositionPatterningPlan

227、arizationDopingChip design,Prototyping&TestingPackaging,module assembly and end useDrivers:Logic/AIdevice shrinkCapacity demand,sustainabilityLithography scaling(EUV)Device shrink,layer growth,packagingRelevantMaterials:Metals and dielectricsDopant gases,etch gases(incl.low GWP1)Lithography material

228、s,PFAS-free ancillaries Oxide and metal slurriesAdvanced materials mission critical to wafer process stepsBroad technology families required for current and future wafer processing applicationsA portfolio that allows Semiconductor Solutions to innovate and grow with key industry players1)Global warm

229、ing potential From:interim update Electronics presentation 2023.10.19Semiconductor SolutionsTrusted global player in safe and reliable delivery of hazardous materials to semiconductor industry112Gas&chemical delivery Drivers:fab utilization rate(wafer starts/MSI3)Relevance:leading indicator to mater

230、ial consumption levels What:provide delivery systems maintenance,materials inventory management,QA4&new installations How:contracts with 18 customers fabs;500 global employees+100 field service technicians Drivers:construction capex for new fab buildings Relevance:understanding of long-term capacity

231、 plans&material volume needs What:designing bulk spec gas delivery systems How:managing construction and installation Drivers:customer WFE1spend Relevance:customer engagement on how materials are delivered to the fab What:design and manufacture systems for:spec.gases,CVD2/ALD4materials,CMP4slurries&

232、cleans;Systems store gas/chemical containers and control material delivery parameters to fabs How:iwith customers fab process control and monitoring systemsFab projectsMEGASYS&in-fab serviceHighly synergistic business model providing partial hedge to semiconductor cycle1)WFE=wafer fab equipment;2)CV

233、D=chemical vapor deposition,ALD=atomic layer deposition,CMP=chemical mechanical polishing;3)MSI=million square inches of wafers;4)QA=quality assurance From:Merck Capital Markets Day 2020 2020.09.16Updated October 2023DS&S Delivery Systems&ServicesSemiconductors SolutionsDeep dive Electronics-Becomin

234、g the local partner to global customers1131)McClean IC Insights report 2023;2)Individual Government announcements funding part of the$900bn total industry investment;3)Semiconductor Solutions investing significantly more than 2 bn in capex as part of“level-up”program between 2021-25 with significant

235、ly more than 1bn in R&D as per press releases on 20.09.2021 and 08.03.2023NorthAmericaInnovation partner to leading-edge customersLocal partner to global customers supporting regional powerhousesNetwork of R&D and production close to customers and innovation hubsAlternative production sitesprovide g

236、lobal resilienceUS CHIPS Act investing$280bn2EU Chip Act investing$40bn2Industry plans$900bn1investment driven by 5-6 leading edge customersMerck R&D/OperationLeading-edge fab projectsEUAPACGlobal powerhouses driving semiconductor investmentSmart localization strategyLocalized government support1bn

237、Merck capex31 bn Merck capex3From:Merck Capital Markets Day 2023 2023.10.19Integrated materials player,well positioned to serve the need of customers in semiconductor fabrication114Semiconductorcomponents573Other components,assembly&profit2,426SemiconductorMaterials7295Other cost&profit573Electronic

238、sSemiconductorsSemiconductor Solutions Smartphones PCs&Laptops Servers Communication Wearables Smart devices CPUs/logic chipsMemory chips(SSD,RAM)Sensor chipsCommunication chipsSilicon wafersPatterning materialsThin-film materialsPlanarization materialsCleansSpecialty gasesBulk gasesPackaging materi

239、alsOther Consumables4Parts&equipmentApplications&servicesMerck Semiconductor Materials offeringMerck DS&S offeringNo Merck offering1333llustrative Industry P&Ls based on Sources:1)Prismark 2022,2)Prismark 2022&SEMI MKT MMDS Q3 2022&SEMI WFF Q4 2022;3)Representative player in the industry,non-exclusi

240、ve list,not based on any underlying criteria;4)e.g.Filters,Pads,etc.;CPU=Central Processing Unit;RAM=Random Access Memory;SSD=Solid State Disk;CMOS=Complementary metal-oxide semiconductorin bnin bn23Wafer FabricationEquipmentFrom:Merck Capital Markets Day 2020 2020.09.16 Updated October 2023Semicond

241、uctors SolutionsDisplay SolutionsOLED material market exceeds LCD material market already in 202235271253%6%8%31%54%62%OLED shipment area/addressable material market in%of totalx%840772201720221,69420259641,1291395-8%+8%Display shipment area1kmAddressable material market2 mCont

242、inued growth across all technologiesOLED growing faster than LCD,but LCD to command 90+%area share for foreseeable future+22%+4%Material value per OLED display higher than in LCDOLED material market exceeds LC material market in2022,but market split between many more players1)Omdia;2)Internal Busine

243、ss Intelligence;Acronyms:LCD=Liquid-Crystal Display,LC=Liquid Crystal,OLED=Organic Light EmittingOLEDLiquid CrystalsUpdated October 2023Electronics Q3:Semi Solutions demonstrates resilience as guided;Display Solutions compensates with volume driven growth116Electronics P&L Semiconductor Solutions:-9

244、%org.decline,with resilient portfolio enabling outperforming of MSI(down high-teens amount)Display Solutions:up+12%org.,with partial recovery in Liquid Crystals,driven by volume;price pressure continues to be a factor Surface Solutions:up+3%org.,driven by strong cosmetics growth;partially offset by

245、weaker automotive coatings demand M&S costs declining with strict cost discipline and efficiencies as logistics come down in line with volume development R&D down slightly due to higher quarterly comp,sustained high level of investment to drive mid-term growth in line with Level-up program Sequentia

246、l FX rates partially easing in North America and Asia EBITDA pre margin down due to lower sales,negative mix effects,sustained inflationary costs and some new site ramp-up costs+0.0%1,036 m 916 m Q3 2022OrganicCurrencyPortfolioQ3 2023-4.0%-7.9%0.3%302 m 208 m Q3 2022OrganicCurrencyPortfolioQ3 2023-1

247、7.8%-12.6%-0.7%Net sales bridgeEBITDA pre bridgeCommentsmIFRSPreQ3 2022Q3 2023Q3 2022Q3 2023Net sales1,0369161,036916M&S*-173-144-172-142Admin-33-40-32-32R&D-78-75-78-74EBIT1445216278EBITDA294186-EBITDA pre302208302208(in%of net sales)29.1%22.7%29.1%22.7%*Marketing and selling expensesTotals may not

248、 add up due to roundingFrom:Q3 2023 Results Presentation 2023.11.09Semiconductor Solutions demonstrates resilience in down cycle117Sales development m-org.growth%YoY Semiconductor Solutions slows due to ongoing semi market softening with high-teens decline in MSI in Q3High growth in DS&S business dr

249、iven by ongoing capex investment in new fabsStrong orderbook of projects and equipment for H223 and beyondSemiconductor Materials suppressed due to low end-user demand and lower short-term customer utilizationDestocking to delay recovery,when customers increase wafer productionInvesting for growth a

250、s mid-term view remains intact729715%Q3 202212%Q4 20222%Q1 2023-5%Q2 2023-9%Q3 2023From:Q3 2023 Results Presentation 2023.11.09E-MAIL:WEB: 6151 72-913321118EVA STERZELDANIEL WENDORFFCONSTANTIN FESTNADJA GROSSCHMIDTInstitutional Investors/Analysts+49 6151 72-24164 ESG/Institutional&Retail

251、Investors/AGM+49 6151 72-5355 Assistant Investor Relations+49 6151 72-3321 Head of Investor Relations+49 6151 72-5271 ADRIAN GORSKIInstitutional Investors/Analysts+49 6151 72-FLORIAN SCHRAEDERInstitutional Investors/Analysts+49 6151 72-SUSAN KUEHNAssistant Investor Relations+49 6151 72-3321 PETER DICKSONInstitutional Investors/Analysts+49 6151 72-20753