Herve Kubwimana

Merck Innovation Center

Why Manufacturersembrace innovation

Merck Innovation Center 2

Vibrant Science &

Technology

€2.0 bninvested in

R&D in 2016

publicly listed & majority family-

owned

€15.0 bnsales

in 2016

~50,000 employees

66countries

1668 founded

We unite the best of two worlds

Merck KGaA

Total capital100 %

Merck FamilyEquity interest 70.3 %

Family-ownedfor 12 generations

ShareholdersShare capital 29.7 %

Publicly traded since 1995DAX member since 2007

3 Merck Innovation Center

What we do

4 Merck Innovation Center

Life SciencePerformance

MaterialsHealthcare

• A wide range of high-tech chemicals, such as:

Liquid crystals and OLEDmaterials for displays & lighting

Effect pigments for coatings and cosmetic products

Specialty chemicals for the semiconductor industry

Functional materials for solar panels

• Innovative tools and laboratory supplies for the life science industry that make research and biotech production better, faster and safer

• Broad and in-depth portfolio of 300,000 products

• Industry leading e-commerce platform, SigmaAldrich.com

• Award-winning innovation

• Prescription drugs and solutions to treat cancer, multiple sclerosis, infertility, cardiovascular and metabolic diseases

• Over-the-counter products for a healthy lifestyle

• Allergy products and biosimilars

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Transforming ideas into innovation

Beyond Merck‘s current scope

Merck is building an innovation ecosystem that helps to

recognize innovative approaches at an early stage and

implement them rigorously. The ecosystem:

1. Sets strategic innovation direction,

2. Facilitates innovation across & beyond

our current businesses,

3. Drives cultural change and intrapreneurial spirit,

4. Centers around curious minds and

5. Enables driving innovation projects

Merck Innovation Center

Innovation beyond

Innovation between

Healthcare

Life Science

PerformanceMaterials

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Room for innovation

The Merck Innovation Center

The Merck Innovation Center offers

A modern working environment

Flexible forms of organization

Lean processes

for innovation projects, innovation related group functions and early-stage startups

The modular Innovation Center

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The Future Innovation Center

It is a place for:• Trying out new things• Finding clever solutions for today’s challenges• Bringing colleagues from the sectors

together, also with externals• Networking of curious minds

In 2018 the future Innovation Center will beopened – to offer even more room and opportunities for innovation.

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Fosterinternal ideation, project inception and progress

Strengtheninnovator skills & innovation culture

help ideasgrow -and scale up

to viable new business. Beyond current boundaries.

Innovation Think Tanks

Innovation Projects

Connectexternal ideasto Merck

Innospire

Set strategic direction

Internal open campaign

Innovator Academy

Innovation Fields

Accelerator

External ideation

Merck Innovation Center

8

Ignite and Nourish breakthrough

ideas Internal Ideation Channels

In anutshell Support ideators throughout their way

from need finding to the first idea to creating strong value propositionsand building a business case

Set up a community of innovators for continuous collaboration and exchange across all business sectors and with external partners

Merck Innovation Center

9

Develop projects into viable businesses Innovation

Projects

In anutshell

Efficiently grow and scale innovation projects by providing entrepreneurial freedom, dedicated support, clear governance and decision making

Develop dedicated project portfolios to build sizable and sustainable future businesses making a P&L contribution – between and beyond Merck’s current scope

9 Merck Innovation Center

10

bodybuildingfor innovator skills

& our innovation culture

In a nutshell Enable people to innovate, bring their

ideas to life and create viable businesses and services.

Provide development programs, methodologies and a set of offline and online trainings focused on ideation, innovation and business development.

The bandwidth of these offerings helps to foster Merck’s innovation culture..

Innovator Academy

10 Merck Innovation Center

11

Co-create the next big bang

Accelerator

In anutshell Support selected founders and startups

that already have an idea or concept but are still at the early stages of development and implementation

The focus is on projects in the fields of healthcare, life science, performance materials and other trending topics

The Accelerator offers 2 programs: a global one in our HQ and one specialized to Africa

Merck Innovation Center

Merck Accelerator Program

A fruitful symbiosis between startups and Merck

agile creative flexible

Open-minded

fast

startups

corporates

“slow”

too many structures

Process-focused

Internal Politics

Due to the work with startups, corporates can…

Generate insights in latest technology trends in an early stage

Support scouting activities of the businesses and venture units

Learn how to be more flexible (culture)

Build trust – startups as business partners

Identify motivated/ creative talents

Gain advantage from latest university research

Help to rethink the corporates’ business model12