Merck 2014 Annual Report Download - page 41

36 TO OUR SHAREHOLDERS → Letter from Karl-Ludwig Kley
These developments are the result of our long-term transformation and growth strategy. I have been report-
ing to you since 2007 on our progress: With the acquisitions of Serono, Millipore and AZ and the divestment
of our Generics business, we have extensively rebuilt our portfolio. We have globalized our organization and
filled key positions with the right people. We have modernized our processes and implemented extensive
efficiency measures. The Group is thus well-placed to take the next growth steps from a position of strategic
and financial strength.
Now that more and more pieces of the mosaic are coming together, the big picture is becoming visible. Our
company is transforming into a highly specialized technology company with the goal of improving the lives
of patients and customers.
The world is changing rapidly, and our company is changing too. In 2014, the growth markets of Asia and
Latin America for the first time accounted for the largest proportion of Group sales. Their contribution
increased by 2 percentage points to 38 %. In order to further capture the potential of these markets for the
Group, we need to be close to local customers. For instance in China, we opened our Liquid Crystals Center
in Shanghai and laid the cornerstone for a major pharmaceutical manufacturing facility in Nantong.
We offer technologies and solutions that make a positive contribution to our rapidly changing times. Aging
populations are a global challenge, as are the issue of broad access to health
for everyone, and the digitization
of our society. We are resolutely focusing on innovation in order to continue
to offer good solutions to these
challenges. The most visible sign is the Innovation Center, which is currently being built at the heart of our
global headquarters in Darmstadt. It is to become a hub of creativity at our company.
But as we develop the company further, we will not lose focus. We will continue to concentrate on fields in
which we have the competencies and resources to make meaningful contributions. In the future, we will
group them into three business sectors in our financial reporting:
→Healthcare
comprises the Biopharmaceuticals, Consumer Health, Allergopharma and Biosimilars businesses.
→Life Science includes the Life Science business and offers room for the planned acquisition of Sigma- Aldrich.
→Performance Materials consists of liquid crystals, the AZ Electronic Materials business, pigments and new
materials.
Customers and patients remain at the center of all our efforts. Innovation, efficiency, and a global presence
are not an end in itself. The only way for us to achieve our own objectives is by meeting the needs of
customers and patients with innovative products and the highest quality standards. We are aiming for long-
term, sustainable growth in line with our six corporate values, namely courage, achievement, responsibility,
respect, integrity, and transparency.