Merck 2014 Annual Report Download - page 60

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55GROUP MANAGEMENT REPORT → FUNDAMENTAL INFORMATION ABOUT THE GROUP → Internal management system of the Group
Sales
EBITDA pre
BFCF
Sales Growth
EBITDA pre margin
ROCE, MEVA
M & A
NPV, IRR
EBITDA pre margin
EPS
ROCE, MEVA
Licensing
eNPV
EBITDA pre margin
PoS
ROCE
Capex
NPV, IRR
Payback period
EBITDA pre margin
ROCE
Sales
EBITDA pre
Net Income, EPS
Dividend ratio
Credit rating
MEVA
Group
Business
Projects
Abbreviations
EBITDA pre = Earnings before interest, income tax, depreciation and amortization pre one-time items
EPS = Earnings per share
MEVA = Value added of Merck KGaA, Darmstadt, Germany
BFCF = Business free cash flow
ROCE = Return on capital employed
NPV = Net present value
IRR = Internal rate of return
eNPV = expected Net present value
PoS = Probability of success
INTERNAL MANAGEMENT SYSTEM OF THE GROUP
As a global company with a diverse portfolio of products and
services, Merck KGaA, Darmstadt, Germany, uses a comprehen-
sive framework of indicators to manage performance. The most
important KPI (key per formance indicator) to measure perfor-
mance is EBITDA pre one-time items.
The Value Creation and Financial KPI Pyramid, which summarizes
the important financial performance measures of the Group,
reflects the comprehensive framework of financial KPIs to steer
the businesses and prioritize the allocation of cash resources. It
consists of three managerial dimensions, which require the use of
different indicators: Group, Business and Projects.