Dr. Stefan Oschmann, Chairman of the Executive Board and CEO

Dr. Marcus Kuhnert, Member of the Executive Board and CFO

Dr. Belén Garijo, M.D., Member of the Executive Board and

CEO Healthcare

Darmstadt, Germany – February 5, 2019

Merck KGaA, Darmstadt, Germany &

GlaxoSmithKline

M7824 - Driving a paradigm shift in the treatment of cancer

DisclaimerPublication of Merck KGaA, Darmstadt, Germany. In the United States and Canadathe group of companies affiliated with Merck KGaA, Darmstadt, Germany operatesunder individual business names (EMD Serono, Millipore Sigma, EMD PerformanceMaterials). To reflect such fact and to avoid any misconceptions of the reader of thepublication certain logos, terms and business descriptions of the publication havebeen substituted or additional descriptions have been added. This version of thepublication, therefore, slightly deviates from the otherwise identical version of thepublication provided outside the United States and Canada.

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Disclaimer

Cautionary 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,” “seek,”“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, are forward-looking statements. We intend these forward-lookingstatements 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 aresubject to a number of risks and uncertainties, many of which are beyond control of Merck KGaA, Darmstadt, Germany, which could cause actual results to differ materially from suchstatements.

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 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 pressure 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 risk 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 balancesheet items; risks from pension obligations; risks from product-related and patent law disputes; risks from antitrust law proceedings; risks from drug pricing by the divested GenericsGroup; risks in human resources; risks from e-crime and cyber attacks; risks due to failure of business-critical information technology applications or to 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; downwardpressure on the common stock price of Merck KGaA, Darmstadt, Germany and its impact on goodwill impairment evaluations, as well as the impact of future regulatory or legislativeactions.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements 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 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 byapplicable law, we undertake no obligation to 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 exceptionals, net financial debt and earnings per share pre exceptionals, which are not defined by 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 determined in accordance with IFRS. The figures presented in this statementhave been rounded. This may lead to individual values not adding up to the totals presented.

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4

2012-2015 2016-2018 2019-2022

Efficiency

program

Portfolio optimization in LS and PM

Turnaround

in Healthcare

Leadership

in Performance Materials

Sigma

integration

Digital

business modelsNew applications

beyond displays

First pipeline

launches

3 strong pillars

Above-

market growthin Life Science

Fully leverage

pipeline potential

Portfolio management

Maximize our pipelinepotential:

1. Ramp up of Bavencio and Mavencladsales (9M 2018: €106 m)

2. Solid growth of core businessover 29 quarters

3. Diligent development and management of the pipeline(e.g. Evobrutinib, Bavencio RCC 1L,

TGF-ß Trap)

Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019 | Acronyms: RCC = Renal Cell Carcinoma

Healthcare Strategy

Continuing to deliver on our strategic roadmap

5 Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019 | 1: Assessment may change due to regular review

Actively managing portfolio for value maximization

Full pipeline requires regular

prioritization and de-risking decisions

• We continuously monitor all pipeline candidates

• Regular assessment of their potential is based on clinical data, strategic fit and financial criteria

• We then decide on how to best develop the assets going forward

• Strategic partnerships and external financing are key to de-risk the pipeline and maximize its value

Evaluate

Self

Mavenclad

Tepotinib

DNA Damage Response

Strategic partnerships

Bavencio

TGF-ß TrapEvobrutinib

Externalization

Atacicept

Abituzumab

IL-17

Asset’s fit for Merck KGaA,Darmstadt, Germany’s resources

Asset’s f

it w

ith M

erc

k K

GaA,

Darm

sta

dt,

Germ

any’s

R&

D s

trate

gy

Merck KGaA, Darmstadt, Germany’skey pipeline compounds1

Healthcare Strategy

Clinical Development

Plans

First-in-class bi-functional fusion protein, targeting both TGF-β and PD-L1

Demonstrated superior anti-tumor activity in pre-clinical study compared to anti-PD-L1 alone, and anti-PD-L1 and TGF-β given in combination as separate agents

Great excitement in IO community about M7824 uniquely addressing TGF-ß biology widely accepted as key resistance factor for anti-PDxtherapies

• Eight high priority immuno-oncology clinical development studies ongoing or expected to commence in 2019, including pivotal registrational studies in non-small cell lung and biliary tract cancers

• Further plans to be communicated at a later stage

Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019 | 1: proposed International Nonproprietary Name (INN) | Acronyms: NSCLC = non-small cell lung cancer 6

M7824 Bintrafusp alfa1

A bifunctional fusion protein with significant potential

• Tested in 14 Phase Ib expansion cohorts across >700 patients in more than 10 tumor types

• Shown clinical anti-tumor activity across multiple hard-to-treat cancers includingadvanced NSCLC, biliary tract cancer, HPV-associated cancers, and gastric cancer

• PhII study M7824 monotherapy versus pembrolizumab 1L, advanced NSCLC high PD-L1-tumor expressers started in October 2018

Clinical Development Achievements

M7824

GlaxoSmithKline1

7Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019 | 1: Partnering approach complimentary to Merck KGaA, Darmstadt, Germany /Pfizer alliance

Choice of Partner

Joining forces with a strong partner committed to advancing M7824

Selection criteria

Global pharma player with strong capabilities in the development and commercialization of blockbuster drugs

Committed to advancing the development of M7824

Strong commitment to oncology reflected by:• Leading industry talent• Cutting edge portfolio• Recent acquisition of Tesaro

M7824 has potential for synergies with several of GSK's portfolio assets

Aligned on future development plans Fully aligned on current clinical development plan, including decisions made prior to partnership

Impressive global footprint & leadership with deep development and commercial oncology expertise

Provendevelopment

commitment

Complementaryoncology pipelines

Commercial strength

8Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019 | Acronyms: ICOS = Inducible T-cell costimulator, STING = Stimulator of interferon genes, TLR4 = toll-like receptor 4

Choice of Partner

Leveraging collective strengths and an aligned vision

GSK

• M7824: the only TGF-ß / anti-PD-L1 therapeutic, discovered in-house

• DDR portfolio

• Several potential combination assets including ICOS, TLR4, STING and others

• Established Oncology footprint • Global commercial footprint and growing oncology presence

• Proven track record of collaborative R&D, with roughly 50% of the pipeline developed through collaborations

• Strong commitment to oncology• Strong industry talent• Proven track record in collaborative

R&D• Rapid growth including Tesaro

acquisition

9 Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019 | 1: all studies shown to be commenced in 2019 | 2: randomized controlled trials | Acronyms: CT = chemotherapy, CRT = chemoradiotherapy, NSCLC = non-small cell lung cancer, BTC = biliary tract cancer, TNBC = Triple-Negative Breast Cancer

Alliance Development Plan

Exploring M7824‘s potential in difficult-to-treat cancers

Explorative Registrational

1L NSCLC in PD-L1 high vs pembrolizumab (mono)2

Started / ongoing

2L Biliary Tract Cancer (mono)

Stage III unresectable NSCLC 2(CRT combo)2

1L NSCLC all-comers (CT combo)

NSCLC

BTC

Not yet started1 Registrational intent

Additional studies and settings(incl. Gastric, 1L BTC, TNBC and

HPV related cancers) to becommunicated at a later date

Others

10 Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019

Deal Structure

Attractive payment terms rewarding developmental success

Upfront & Milestone Payment

Structure

Profit & Costsharing

• Profits & Costs: Shared equally on a global basis• Sales: Merck KGaA, Darmstadt, Germany to recognize sales in the United States, GSK to

recognize sales ex-US

Total deal volume: €3.7 bn

Upfrontpayment:

€300 m

Milestone payments: €3.4 bn

Development(up to €500 m)

Approval Commercial

Development milestones: Up to €500 m triggered by data from the M7824 lung cancer program

Upfront payment 300 m Around €100 m anticipated to be recognized as other operating income

in 2019 and remaining portion expected to be recognized until~mid-2021

Development milestone

Up to 500 m• Majority deferred and recognized as part of other operating income over

the remaining development term starting from the day on which the milestone is achieved

Approval milestones

Up to 2.9 bn• Recognized as part of other operating income as soon as the relevant

success criteria are metCommercial milestones

Sales n/a• Merck KGaA, Darmstadt, Germany to recognize sales in the US• GSK to recognize sales ex-US

Costs n/a • Reconciled to ensure 50/50 share

Profits n/a • Reconciled to ensure 50/50 share

11 Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019 | 1: Accounting treatment subject to confirmation by the Group Auditors

Deal StructureUpfront – and milestone payments recognized asOther Operating Income

Payment type Amount (in €) Accounting treatment1

Effective date Approx. second half of March following anti-trust clearance

12 Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019

Merck KGaA, Darmstadt, Germany and GSK

Driving a paradigm shift in the treatment of cancer

Innovative first-in-class bi-functional

molecule (TGF-β plus PD-L1) leading the

TGF-β immuno-oncology field

Strong partner truly committed to

co-developing M7824 and

exploring synergies with

their oncology portfolio

Attractive deal terms rewarding

developmental, regulatory

and commercial success

Eight high priority immuno-oncology

clinical development studies ongoing or expected

to commence in 2019

Constantin Fest

Head of Investor Relations+49 6151 72-5271

constantin.fest@emdgroup.com

Eva Sterzel

Retail Investors / AGM /

CMDs / IR Media +49 6151 72-5355

eva.sterzel@emdgroup.com

Annett Weber

Institutional Investors /

Analysts +49 6151 72-63723

annett.weber@emdgroup.com

Institutional Investors / Analysts +49 6151 72-22076amelie.schrader@emdgroup.com

Assistant Investor Relations+49 6151 72-3744 svenja.bundschuh@emdgroup.com

AMELIE SCHRADER

SVENJA BUNDSCHUH ALESSANDRA HEINZ

Assistant Investor Relations+49 6151 72-3321 alessandra.heinz@emdgroup.com

EMAIL: investor.relations@emdgroup.com

WEB: www.emdgroup.com/investors

FAX: +49 6151 72-913321

Institutional Investors / Analysts +49 6151 72-5642patrick.bayer@emdgroup.com

PATRICK BAYER

Appendix

Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 201915

M7824 is a first in class TGF-β targeting bifunctional fusion protein

TGF-β targeting overcomes poorly addressable tumor biology

anti PD-L1

1

2

3

TGF-β Trap

Appendix

Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019 | Lan et al, Sci Transl Med, Jan 201816

Co-localization of two highly synergistic pathways

M7824 is superior to co-administration of TGF-β trap and anti-PD-L1

MC38 Colorectal Cancer

Appendix

Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 201917

Ongoing phase I signal-finding studies treated >670 patients with M7824

Phase I, open-label, multiple-ascending dose trial

Study design (NCT02517398)

Study design 001

Subjects with metastatic or locally advanced solid tumors and expansion to selected indications

Indications: Locations:

Sites in America, Asia, Europe and Oceania

1

Pancreatic >2L

TNBC >2L

HCC 2LExpansion

CRC >2L

Melanoma PDx Failure

NSCLC 2L

Adeno Esophageal >2L

Cervical >2L

HCC 2LNSCLC PDx

Failure

SCCHN

GBM >2L

Phase I, open-label, multiple-ascending dose trial

Study design (NCT02699515)

2

Study design 008

Subjects with metastatic or locally advanced solid tumors with expansion to selected indications in Asian subjects

Locations:

Sites in Asia

Sq. Esophageal Biliary tract 2L Gastric 3L

Appendix

18

* TPS ≥50% with 22C3 comparable to ≥80% with EMD 001 assessments

1200 mg (data cut off 23 July 2018)

Keynote 001

80

60

40

20

0

ORR (

%)

Keynote 010

19% 18%

27%29%

44%

25%(10/40)

37%(10/27)

85.7%(6/7)

M7824

All PD-L1+* PD-L1high*

All PD-L1+* PD-L1high*

Efficacy According to Independent Read, RECIST 1.1

Appendix

Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019

Non-small cell lung cancer (NSCLC 2L)

Impressive durable responses seen across all PD-L1 expression levels

19

Biliary tract cancer (BTC) - Update on Clinical Results

ORR of 20% with long durability in allcomer population - IRC readBiliary Tract Cancer (Asian patients, 2nd line after platinum based 1st line)

N=30 N INV % IRC (%)

Objective responses 7 23.3 6 (20.0)

CR 1 3.3 1 (3.3)

PR 6 20.0 5 (16.7)

DCR (conf CR/PR/SD) 11 36.7 12 (40.0)

DoR Median not reached, 6/6 ongoing for 8.3+ to 13.9+ months

PFS Median 2.6 monthsPFS12 23.6%

1.3-5.69.7-40.8

OS Median 12.7 monthsOS12 52%

6.7-not reached32.8-68.2

RECIST 1.1, Independent Central Read

Best change in target lesions from baseline

Change in target lesions from baseline

SOC Efficacy BTC 2L (ASAN Medical Center, Lamarca2014)

ORR 7.5% (Lamarca 2014)

Pembrolizumab BTC cohort in PD-L1 ≥1%*

ORR 5.8%

data cut off date: 23 July 2018

Appendix

Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019 | * Keynote 158, n=104 pts, 6.6% ORR in PD-L1 pos, 2.9% ORR in PD-L1 neg

20

HPV-associated cancers – A potential pan-tumor therapy

M7824 produced strong responses in these cancers, especially those HPV+

• Data shown is from dose escalation portion of the Phase 1

• HPV is associated with almost all anal and cervical cancer, and some SCCHN1-3

• Anti–PD-1 monotherapies have shown clinical activity but response rates remain in the range of 17–26%4-7

• Analyses of HPV+ cervical and SCCHN tumor samples from TCGA and Oncominedemonstrate frequent dysregulation of TGF-βR1 signaling, suggesting this pathway plays a role in HPV-mediated carcinogenesis

1. De Vuyst et al. Int J Cancer. 2009;124:1626–36;2. Ihloff et al. Oral Oncol. 2010;46:705–11; 3. Mehanna et al. Head Neck. 2013;35:747–55; 4. Bauml et al. J Clin Oncol. 2015;33(suppl; abstr TPS3094); 5. Ferris et al. N Engl J Med. 2016;375(19):1856; 6. Frenel et al. J Clin Oncol. 2017;35(36):4035; 7. Ott et al. Ann Oncol. 2017;28(5):1036;8. Levovitz et al. Cancer Res. 2014;74(23):6833

BOR, n (%) N=17(all HPV associated tumors)

N=12(all HPV-positive)

CRPRSDPD

2 (11.8)4 (23.5) a

4 (23.5)7 (41.2)

1 (8.3)4 (33.3) a

1 (8.3)6 (50.0)

ORR 6 (35.3) 5 (41.7)

DCR 10(58.8) 7 (50.0)

a1 patient had an unconfirmed PD per RECIST prior to durable PR (assumed

pseudoprogression)

Appendix

Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 2019

Merck KGaA, Darmstadt, Germany & GSK Global Alliance | February 5, 201921

Gastric Cancer (Asian patients, 3L+) – A promising monotherapy in allcomers

Long durability and response rates nearly twice as PDx

N=31 n INV % IRC (%)

ORR (confirmed CR+PR) 7 22.6 5 (16.1)

CR 2 6.5 1 (3.2)

PR 5 16.1 4 (12.9)

SD 5 16.1 2 (6.5)

PD 17 54.8 21 (67.7)

NE 2 6.5 2 (6.5)

DCR (CR+PR+SD) 12 38.7 7 (22.6)

RECIST 1.1, investigator read

Nivolumab Pembrolizumab

Trial ONO-4538 KEYNOTE-059

Phase III vs. Plc II

Line of Therapy 3L+ 3L+ mono

Patient (n) 493 143

ORR 11.2% 13% (PD-L1 pos)

All comer population has been enrolled in this trial

Efficacy According to Investigator-Assessed RECISTv1.1: Tumor Regression from Baseline

Appendix