Merck 2010 Annual Report Download - page 13

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
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During 2010, we made further progress with the transformation of your
company into a leading innovative and high-tech enterprise. As part of this
process, we achieved several important milestones.
We impressively proved Merck’s economic strength following the 2009
crisis year. Our total revenues increased by 20% to EUR 9.3 billion, a
record high. The operating result jumped by 72% to EUR 1.1 billion. At
nearly EUR 1.7 billion, underlying free cash flow significantly exceeded
the billion-euro threshold for the first time. Profit after tax was 70% higher
than in 2009. In view of these figures, we will propose to the Annual General
Meeting on April 8 an increase in the dividend to EUR 1.25 per share.
With the acquisition of Millipore, we have given our business a deci-
sive boost. By combining Merck and Millipore, we have become a leading
global partner to the life science industry. With our portfolio, which ranges
from laboratory chemicals to complete solutions for the production of bio-
pharmaceuticals, we are helping our customers to succeed in research,
development and production. At the same time, we are capturing oppor-
tunities to realize synergies with our own existing businesses and to enter
new fields.
We have also set the course for the future with the recent changes in the
composition of the Executive Board. On January 1, 2011, Stefan Oschmann
succeeded Elmar Schnee, who left the company, as the Board Member
responsible for the Pharmaceuticals business. I would also like to take this
opportunity to thank Elmar Schnee, who decisively shaped the integration
of Merck Serono and contributed greatly to the solid foundations on which
we can further develop the business. Kai Beckmann will be joining the
Executive Board, taking over responsibility for the newly created Executive
Board position for Human Resources on April 1. And on June 1, 2011, Mat-
thias Zachert will succeed Michael Becker as Chief Financial Officer. With
this new team, we are creating the perfect conditions to start a new, success-
ful chapter in the unique history of Merck.
We are in a position to develop the company further from the economically
robust and highly innovative basis of 2010.
Merck Serono, our division for innovative prescription drugs, outper-
formed the average global market growth by posting an 8.3% increase in
sales. Our two largest products, Rebif ® and Erbitux ®, continued to perform
well. Their sales increased by 8.6% to nearly EUR 1,700 million and 18%
9Corporate governance Consolidated Financial Statements More information
Company Management Report