Merck 2014 Annual Report Download - page 142

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137GROUP MANAGEMENT REPORT → Report on Expected Developments
FORECAST FOR THE LIFE SCIENCE BUSINESS SECTOR
LIFE SCIENCE →
FORECAST 2015
€ million Actual figures for 2014 Forecast for 2015 Key assumptions
Sales 2,682.5 – Moderate organic
growth
– Growth will be driven especially by the Process Solutions and Lab Solutions
business areas, as well as the Emerging Markets
EBITDA pre
one-time items
658.6 – Moderate increase – In line with the development of sales
Business free
cash flow
419.0 – Strong increase – Improvement in EBITDA pre one-time items
– Significant reduction in inventories
Sales
Merck KGaA, Darmstadt, Germany, expects that continued in-
creasing investments in research and development activities in the
pharmaceutical and biotech industries will also have a positive
impact on the Process Solutions business area in 2015. Process
Solutions supplies consumables and services for pharmaceutical
and biotech companies. It is anticipated that the Lab Solutions
business area will benefit from the expected slight growth of the
global laboratory product market. Development of the Bioscience
business area is expected to remain subdued. It is therefore likely
that the Process Solutions and Lab Solutions business areas will be
the strongest drivers of growth in the Life Science business sector
in 2015.
Overall, the Group expects moderate organic sales growth
in the Life Science business sector in 2015 compared with the
previous year. From a geographic perspective, a sharp increase
particularly in Emerging Markets is anticipated in 2015.
EBITDA pre one-time items
In line with the forecast organic sales development and continuous
efficiency improvements, EBITDA pre one-time items is expected
to also increase moderately.
Business free cash flow
The Group expects a strong increase in the business free cash flow
of the Life Science business sector. This increase will stem not only
from the improvement in
EBITDA pre one-time items, but also a
significant reduction in inventories.
Forecast taking into account the successful acquisition of
Sigma-Aldrich
In the event of the successful acquisition of Sigma-Aldrich and
first-time consolidation in mid-2015, the company expects double-
digit growth rates in the Life Science business sector for sales,
EBITDA pre one-time items and business free cash flow in 2015
compared with 2014.