Live better. Feel better. Look better.

Rediscover Beauty

Foreword by the CEO

Milestones

Values

Vision and Mission

Facts and Figures

Aesthetics

Neurotoxins

Innovation

A Truly International Presence

Merz Pharma Board

Key Figures

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Merz has become a global leader in aesthetic medicine and neurotoxins. Roughly 3,000 Merz employees work to bring innovative products to the market so that people all over the world can live better, feel better and look better.

Contents

Note: This brochure is not intended for product

promotional use with healthcare providers and patients.

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“In focusing on the business segments Aesthetics and Neu-rotoxins, we are pursuing the right strategy.”

Dear readers,

Health and well-being are basic human needs. We all wish for long and healthy lives. As life expectancy increases, so too does our desire to maintain an attractive appearance and a positive self-image for many years to come.

Building on decades of successful business in treat-ments for beauty and skin care, Merz offers a unique product portfolio so that patients can fulfill that desire with the help of medical specialists. Through minimally or non-invasive skin rejuvenation procedures, focused ultrasound treatment for skin tightening, and most recently, a long-term method to treat cellulite, we ensure that physicians can respond to patients’ individual needs.

Due to our scientific expertise as a pharmaceutical company, we have also strengthened our position in Neurotoxins, our second core business, as a provider of specialty products for the treatment of neurologically induced movement disorders.

In the past few years, we have changed our business model significantly. We have invested heavily in innova-tive products, strengthened our position strategically through corporate acquisitions, and expanded our global presence with new subsidiaries. In short, we have evolved from a mid-sized pharmaceutical company into a leading global provider in the fields of aesthetics and neurotoxins.

But through all these changes, we have never lost sight of the legacy of our company founder Friedrich Merz. His credo was that all his innovations should deliver tangible benefits to humankind. Taking our inspiration from that philosophy, we at Merz continue to pursue the objective of making a powerful contribution to the well-ness of patients, in keeping with our motto, “Live Better. Feel Better. Look Better.”.

Best regards,

Philip BurchardChief Executive Officer

Foreword by the CEO 54

Milestones

The company founder Friedrich Merz wanted to develop products that were truly needed. He also wanted to respond to needs differ-ently from others — and more successfully.

Company founded on March 9

Eckenheimer Landstrasse

Birth control with Patentex®

First subsidiaries

First anti-wrinkle preparation

Beauty From Within

tetesept®

Foam masks

New therapeutic approaches

Alzheimer’s disease-induced dementia

Botulinum neurotoxin

Aesthetics

Aesthetics portfolio acquisition

10 years of success

Novel cellulite treatment 

The young pharmacist and chemist Friedrich Merz establishes his own pharmaceutical production facility in Frankfurt am Main, Germany.

The company expands and moves into a former cigarette factory located in the street Eckenheimer Landstrasse. This building is still the company’s headquarters to this day.

Against political and religious opposition, Merz launches Patentex®, the local contraceptive in the German market.

The 1930s are characterized by rapid growth. Branch offices are established in Berlin, Vienna, Zurich, London and Newark, NJ.

At the international congress for beauty care, Friedrich Merz presents Placentubex®, an anti-wrinkle preparation that tightens and rejuvenates the skin.

Based on 18 active ingredients and a special yeast extract, Friedrich Merz develops the dietary supplement Merz Spezial Dragees® for Beauty From Within, a product still popular in the German-speaking markets today.

Valuable medicinal plants concentrated as essential oils form the basis for the tetesept® cold relief bath.

A milestone in cosmetics: Friedrich Merz develops the Placentubex® foam mask for skin care for women who have little time.

In the 1970s, Merz successfully develops and launches a series of new products in Pharmaceuticals: PK-Merz® for the treatment of Parkinson’s disease, Lipo-Merz® to decrease high levels of blood lipids, and Viru-Merz® for Herpes.

With Memantine, Merz develops the first drug worldwide for the treatment of patients with moderate to severe Alzheimer’s-induced dementia. Its unique mechanism of action protects nerve cells against an increased concentration of glutamate. It is particularly thanks to Dr. Jochen Hückmann, grandson of the company founder and longtime leader of the business, that Memantine was further developed, thus introducing new opportunities for Merz.

Merz launches a new generation of botulinum neurotoxin on the German market. The toxin for the treatment of neurologically induced movement disorders is free of complex proteins, safe, and effective.

With the acquisition of the US aesthetics company BioForm Medical, Merz enters the field of aesthetic medicine.

Merz acquires the US medical device company Ulthera for up to 600 million dollars – the largest acquisition in company history.

Today, the botulinum neurotoxin produced by Merz is approved for aesthetic use in 31 countries and for neurological treatments in 47 countries.

The FDA clears Cellfina™, a minimally invasive procedure for reducing cellulite, for results that last up to three years.

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2014

2015

2016

Milestones 76

Our Values

Persist in innovation

Commit to customers and colleagues

Deliver trusted results

Innovation is the lifeblood of our company and key to our continued growth.

In all our work with customers and colleagues, we seek to build lasting relationships based on trust, respect, and integrity.

We are proud to share in the Merz heritage of providing high-quality and science-backed products and services for more than a hundred years.

Our values determine the way we work at Merz, what we consider right, and which aims we pursue. Our employees and leaders around the world embrace and live these three core values.

Values 98

Our vision is to become the most admired, trusted and innovative aesthetics and neurotoxin company.

Our mission is to improve patients’ health — helping them to live better, feel better, and look better.

Our Vision, Our Mission

Vision and Mission 1110 1110

Facts and Figures

Today, Merz’s core business areas, Aesthetics and Neuro- toxins, deliver more than half of the company’s total revenue.

Strong growth in core business areas (in millions of euros)

Revenue 2015 / 2016 by region(in %)

Europe, Middle East, Africa

North America

Latin America

Asia Pacific

2014 / 20152013 / 20142012 / 20132011 / 2012 2015 / 2016

994

980

913

1.157 1.093

Company

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284

443

552

Aesthetics and Neurotoxins

In fiscal year 2015 / 16, total revenue fell for the first time due to patent expiration and the attendant loss of revenue from the Alzheimer’s disease medication Memantine. However, strong growth continued in the core business areas Aesthetics and Neurotoxins.

6.39.4

40.7

43.6

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Merz invests over 100 million euros per year in research and development.

Research and development spending(in millions of euros)

Employees by region (in %)

Facts and Figures

2014 / 2015 2015 / 2016

148.8

160.2

+7.7 %

77

21

31

Europe, Middle East, Africa (excluding Germany)

North America

Latin America

Asia Pacific

Germany

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The desire for beauty is as old as the human race. Today, thanks to clinically proved products and properly educated physicians, there are more options than ever. In addition to an attractive appearance, aesthetic medicine promises its customers increased well-being, joy in living, and vitality. So it’s no wonder that aesthetic medicine continues its triumphant progress on all continents.

Merz has been one of the chief drivers of innovation in aesthetic medicine for quite some time now. With its broad portfolio of holistic treatment solutions, the company has established itself as a global leader in the field. Its product range extends from a botulinum neurotoxin that is free of complex proteins, a variety of fillers to a micro-focused ultrasound procedure, and long-lasting cellulite treatment. Few other companies offer such a variety of therapeutic treatments.

Aesthetics

An Unmatched Product Portfolio in Aesthetics

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Alongside its well-balanced product portfolio Merz offers unique learning and training opportunities for physicians. At the Merz Institute of Advanced Aesthetics, we have set new standards in the continuing medical education of physicians with the aim of ensuring positive outcomes for patients. Regular Expert Summits are held to give leading aesthetic medicine practitioners from around the world the opportunity to share scientific findings. And the practical courses offered by the Merz Institute of Advanced Aesthetics are intended to train physicians in the safe and effective use of Merz products during aesthetic treatments.

Merz continues to be one of the chief drivers of innovation in aesthetic medicine.

Aesthetics 1918

Merz offers many treatment options for partnering with healthcare professionals to provide fresher, smoother skin to patients that looks years younger: The Merz pro-duct range extends from a variety of dermal fillers and a botulinum neurotoxin to an ultrasound lifting procedure and a pioneering cellulite treatment.

Aesthetics

Hyaluronic acid dermal fillers

Calcium-hydroxylapatite dermal fillers

Topical skin care portfolio

Family of skin care products

Micro-focused ultrasound

Guided subcision system

Optical clearing device

Botulinum toxin

For US patients only: Please see full product benefit and risk information, including all serious warnings at www.xeominaesthetic.com This display of Merz brand names is meant to globally increase awareness among the public, cooperation partners as well as other interested persons about the Merz portfolio of aesthetic products and options which are generally available, although not all products are available in each country.

This is not intended as a substitute for professional medical advice, and interested patients are encouraged to discuss treatment options and the therapies available in their respective countries with their health care professional. Merz encourages use of the information contained in this brochure for general education and better communication between patients and healthcare professionals.

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Neurotoxins: A Patient-Centric Approach

In the case of neurological disorders, individualized therapy is what counts.

Neurotoxins

Patients that suffer from neurological movement disorders such as spasticity and dystonia often struggle not only with muscle spasms, but also with severe pain and heightened psychological stress. For many of them, botulinum toxin is the treatment of choice.

Botulinum neurotoxin is a protein derived from the bacterium Clostridium botulinum. The protein has truly exceptional proper-ties: It zeroes in on and attaches itself exclusively to nerve cells that activate the muscular system or specific glands — thus effectively and accurately blocking communication between nerve and gland or muscle over a given period.

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Neurotoxins

It is hard to imagine modern medicine without this botulinum neurotoxin, which is produced in a complex bio-technological process.

The muscle-relaxing properties of botulinum neurotoxin can be harnessed to treat a wide variety of conditions caused by abnormal, excessive muscular contraction. One of these is cervical dystonia, also known as spasmodic torticollis, which is characterized by an involuntary abnormal posture of the head and neck and often severe pain. Another application is the treatment of upper limb spasticity after stroke, a condition characterized by muscle cramps in the upper extremities.

Merz has developed a botulinum neurotoxin that is free of complex proteins. It is well-tolerated and clinical data indicates that it can be used for treatment matching the needs of the individual patient.

Merz produces the active agent and the finished product at its biotechnological production facility in Dessau, Germany. The state-of-the-art technology used ensures that production meets the highest international standards.

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The search for new solutions to meet the needs of both physicians and patients is a core consideration for Merz. Because we want to deliver products and solutions that generate lasting benefits for our customers, we view successfully developing new products and adopting innovations from elsewhere as our top priority.

Strong in-house product developmentMore than 300 employees worldwide work in product develop-ment at our sites in Frankfurt am Main (Germany), Geneva (Switzerland), Raleigh, NC and Mesa, AZ (USA). Consistently aligned with our corporate strategy, our product development focuses on our core Aesthetics and Neurotoxins businesses. Merz invests more than 100 million euros in these areas each year. These investments continue to pay off in many different ways, from advanced life-cycle management activities to the development of next-generation energy-based devices.

Strategic acquisitionsIn recent years, Merz has consistently expanded and strategically strengthened its Aesthetics business, in part through strategic acquisitions. With the 2014 acquisition of the US medical device company Ulthera for up to 600 million dollars — the largest in the company’s history — Merz now offers innovative medical devices. Ultherapy®, the ultrasound system for non-invasive aesthetic lift-ing developed by Ulthera, today delivers a major share of Merz’s total revenue per year.

In contrast to laser and radiofrequency therapy, where radiation penetrates the skin from the outside, Ultherapy® sends focused ultrasound pulses directly into the deeper skin layers without damaging the skin’s surface. The ultrasound energy temporarily delivers heat in these layers and thus stimulates the regeneration of the proteins collagen and elastin over time.*

Another example of excellent customer benefits is a promising innovation that helps women combat cellulite. Approximately 85 percent of women struggle with the unattractive appearance of cellulite on buttocks and thighs. The efficacy of other therapies has proven controversial to date. However, with Cellfina™, a special technology to release structural tissue (fibrous septae), Merz has achieved a breakthrough in the treatment of cellulite. The US Food and Drug Administration (FDA) has cleared Cellfina™ for results that last up to three years. The response from patients and physicians has been correspondingly positive. Today, the device is also officially approved in Europe, receiving the CE mark in July 2016.**

* For full product benefit-risk information, please see www.ultherapy.com

** For full product benefit-risk information, please see www.cellfina.com

Driven by the Spirit of Innovation

Innovation 2726

Innovation

In August 2016, Merz expanded its presence in aesthetic medi-cine through its acquisition of ON Light Sciences, a US medical device company that manufactures a special patch allowing for more efficient and less painful tattoo removal via laser. After all, many people regret getting a tattoo at some point in their lives. And tattoo removal has become one of the fastest-growing fields of application for laser treatment.

The search for partnership in innovationThe global aesthetics market continues to grow rapidly. In addition to product development and the strategic acquisition of attractive companies, we support our company’s strategy for growth and innovation with another approach. By investing venture capital, Merz finances start-ups or technologies at an early stage of development that promise game-changing innovations in aesthetic medicine. And Merz offers far more than just financial support. Companies that we partner with can access the global Merz infra-structure and benefit from our scientific research network as well as the expert knowledge of experienced development teams.

One example is our April 2016 investment in an American start-up that is developing an entirely new category of medical devices for the aesthetics market. With its new technology currently in clinical development, excess skin can be removed via a minimally invasive procedure. This should enable physicians to treat patients’ sagging skin associated with aging, both on the face and other areas of the body, without resorting to invasive measures, making this a truly revolutionary technology.

Whether through ongoing development of new products or partnership with innovative young companies, Merz is constantly searching for and implementing new ideas in Aesthetics and Neurotoxins.

Whether through ongoing development of new products or partnership with innovative companies, we work constantly to implement new ideas.

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A Truly International PresenceFounded by Friedrich Merz in Frankfurt, Germany in 1908, Merz is still headquartered in the financial hub on the Main River. The company was quick to set up its own subsidiaries, and over the years it has built up a global presence with locations across the world.

This focused drive to establish and maintain an interna-tional presence is still an integral part of the company’s strategy for growth. Merz not only operates in several European countries, but is now also represented in the United Arab Emirates, an important base for business in the Middle East. In the Asia Pacific region, one of the fastest-growing parts of the world, Merz has regional headquarters in Singapore, branch offices in South Korea and Taiwan, and now subsidiaries in China, Australia, India, the Philippines and Thailand as well. Latin America is also playing an increasingly important role for Merz, with affiliates in Mexico, Brazil, Colombia and Argentina.

The United States is an especially attractive market for Merz, and the company currently holds a significant share of what is the world’s largest aesthetic market. Since its acquisition of the US aesthetic specialists BioForm Medical and Ulthera and the Swiss companies Neocutis and Anteis (which mainly serve the US market), Merz boasts a strong presence in North America with a unique product portfolio and experienced sales and marketing teams.

Today, about two thirds of Merz’s roughly 3,000 employees now work outside of Germany. International business generates approximately 88 percent of the company’s revenue.

In addition, Merz works together with selected distri-bution partners who represent Merz’s product portfolio in more than 70 additional countries worldwide.

Office

Product Development

Production Location

Brazil

Argentina

Colombia

Mexico

USA

Canada

North CarolinaArizona

Russia

Benelux

Germany

France

UK

Italy

Austria

Swiss

Spain

Wisconsin

Taiwan

PhilippinesIndia

South Korea

Australia

Indonesia

United Arab Emirates

Malaysia

Singapore

Thailand

Vietnam

HeadquarterFrankfurt am Main

A Truly International Presence

China

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Merz Pharma Board(from left to right): Dr. Torsten Wagner, Dr. Anke Frankenberger,

Katrina Church, Stefan Brinkmann, Beat Neukom, Philip Burchard, Hans-Jörg Bergler, Lawrence Siow, and Dr. Stefan Albrecht. Absent from photo: Bob Rhatigan.

Merz Pharma Board

The Merz Pharma Board leads the company. Management is supported by approximately 3,000 employees whose work consists of rediscovering beauty, in keeping with our motto, “Live Better. Feel Better. Look Better.”.

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Key Figures

Merz Pharma GmbH & Co. KGaA

Global Corporate CommunicationsEckenheimer Landstrasse 10060318 Frankfurt am Main

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2015 / 2016 2014 / 2015 Change

Revenue €m 1,092.9 1,157.0 – 5.5%thereof:

Revenue from operations €m 865.5 780.8 10.8%Memantine royalties / commissioned production

€m 227.4 376.2 – 39.6%

Results of operations

EBIT €m 131.8 255.6 – 48.4%EBIT margin % 12.0 22.0EBT €m 111.6 235.4 – 52.6%Net income €m 70.6 156.5 – 54.9%Cash flow from operating activities

€m 200.3 330.6 9.4%

Research and development

Research and development expenses

€m 160.2 148.8 7.7%

as % of revenue % 14.7 12.9

Financial position and net assets

Total assets €m 1,510.2 1,549.5 – 2.5%

Employees

Headcount as of the end of the reporting period

3,005 2,754 9.1%

Key figures from Merz Pharma Group’s IFRS-consolidated financial statements of June 2016

www.merz.com