Welcome & Introductions Welcome & Introductions Ken - PowerPoint PPT Presentation

Welcome & Introductions Welcome & Introductions Ken Frazier, Chairman and Chief Executive Officer Finan Financial cial & Value & Value Creation Creation Overvi Overview ew Rob Davis, Chief Financial Officer and Head of Global Services Commercial Commercial Growt Growth h Drivers: Drivers: KEYTRUDA KEYTRUDA & Beyond & Beyond Frank Clyburn, Chief Commercial Officer Animal Animal Health Health Inno Innovation vation Rick DeLuca, President, Merck Animal Health Merck R&D Merck R&D Str Strategy Overview ategy Overview Dr. Roger M. Perlmutter, President, Merck Research Laboratories Pipeline Opportunities Pipeline Opportunities Dr. Roy Baynes, Head of Clinical Development and Chief Medical Officer, and Mike Nally, Chief Marketing Officer Future of Future of Merck Merck R&D: R&D: Panel Discuss Panel Discussion ion Merck Research Laboratories Leadership: Dr. Dean Li, Dr. Fiona Marshall and Dr. Daria Hazuda Q&A / Q&A / Closing Closing Remarks Remarks All Lunch Lun ch Break Break All Breakout Breako ut Sessions Sessions Pipeline Deep Dive Next Generation Discovery International Opportunity & China 47

BROAD BROAD ONCO ONCOLOG LOGY Y STRATEGY TO IMPROVE STRATEGY TO IMPROVE OUTCOMES OUTCOMES FOR CANCER FOR CANCER PATIENTS PATIENTS GLOBALLY GLOBALLY 1 Broadly Broadly explore explore Identify patients Identify patients Advance pipeline and Dr. Roy Baynes combinations combinations to reach pursue strategic most likely to benefit more patients collaborations and using biomarkers biomarkers acquisitions to expand portfolio Establish KEYTRU RUDA as foun ounda dation tional al tr trea eatme tment nt across most tumor types and stages of disease 1 Peloton acquisition expected to close in 3Q 2019 48

KEYTRUDA: KEYTRUDA: BROAD BROAD ACTIVIT ACTIVITY Y IN >25 CANCER IN >25 CANCER TYPES TYPES Melanoma NSCLC H&N Urothelial TNBC Gastric cHL 100 100 100 100 100 100 100 Change from baseline in tumor size (%) 0 0 0 0 0 0 0 -100 -100 -100 -100 -100 -100 -100 = cancer types 100 NHL PMBCL Mesothelioma Ovarian SCLC Esophageal NPC Anal with approved 100 100 100 100 100 100 indications 0 0 0 0 0 0 0 Dr. Roy Baynes -100 -100 -100 -100 -100 -100 -100 100 ER + /HER2 – BC 100 Biliary Tract HCC Cervical Thyroid Salivary Endometrial ccRCC 100 100 100 100 100 100 0 0 0 0 0 0 0 0 -100 -100 -100 -100 -100 -100 -100 -100 Prostate GBM MSI-H CRC 100 MSI-H non-CRC Carcinoid pNET Merkel Cell nccRCC 100 100 100 100 100 100 100 0 0 0 0 0 0 0 0 -100 -100 -100 -100 -100 -100 -100 -100 49

KEYTRUDA: KEYTRUDA: REPEAT REPEATED ED OVERALL SURVIVAL OVERALL SURVIVAL BENEFITS BENEFITS IN MON IN MONOTHERAPY AND OTHERAPY AND IN COMBINATION IN COMBINATION Ipi-Naive Melanoma, 2L Bladder, Any PD-L1 2L+ NSCLC, TPS ≥50% 2L+ NSCLC, TPS ≥1% 1L NSCLC, TPS ≥50% 1L RCC, Any PD-L1 KEYNOTE-426 Any PD-L1 KEYNOTE-045 KEYNOTE-010 KEYNOTE-010 KEYNOTE-024 KEYNOTE-006 Pembro vs Chemo Pembro vs Docetaxel Pembro vs Docetaxel Pembro vs Chemo Pembro + Axitinib vs Sunitinib Pembro vs Ipi 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 9 0 9 0 9 0 9 0 9 0 9 0 8 0 8 0 8 0 8 0 8 0 8 0 7 0 7 0 7 0 7 0 7 0 7 0 6 0 6 0 6 0 6 0 6 0 6 0 O S , % O S , % O S , % O S , % O S , % O S , % 5 0 5 0 5 0 5 0 5 0 5 0 4 0 4 0 4 0 4 0 4 0 4 0 3 0 3 0 3 0 3 0 3 0 3 0 2 0 2 0 2 0 2 0 2 0 2 0 1 0 1 0 1 0 1 0 1 0 1 0 0 0 0 0 0 0 0 4 8 1 2 1 6 2 0 2 4 2 8 3 2 3 6 0 1 0 2 0 3 0 4 0 5 0 6 0 0 1 0 2 0 3 0 4 0 5 0 6 0 0 6 1 2 1 8 2 4 3 0 3 6 0 4 8 1 2 1 6 2 0 2 4 0 1 0 2 0 3 0 4 0 5 0 6 0 M o n t h s M o n t h s M o n t h s M o n t h s M o n t h s M o n t h s N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k 5 56 4 16 3 17 2 64 2 33 0 0 2 70 1 95 1 48 1 16 98 80 67 33 7 0 2 90 1 78 1 31 1 01 50 1 0 6 90 3 74 2 48 1 71 86 5 0 1 54 1 21 1 06 89 52 5 0 4 32 4 17 3 78 2 56 1 36 18 0 2 78 1 58 1 11 94 85 0 0 2 72 1 73 1 09 73 59 42 34 18 4 0 1 52 58 29 21 10 1 0 3 43 1 35 57 40 20 2 0 1 51 1 07 80 61 31 5 0 4 29 4 01 3 41 2 11 1 10 20 0 1L Esophageal, 1L HNSCC, CPS ≥20 1L HNSCC, CPS ≥1 1L NSCLC, TPS ≥50% 1L NSCLC, TPS ≥20% 1L NSCLC, TPS ≥1% 1L NSQ NSCLC, Any PD-L1 CPS ≥10 KEYNOTE-048 KEYNOTE-048 KEYNOTE-042 KEYNOTE-042 KEYNOTE-042 KEYNOTE-189 KEYNOTE-181 Pembro vs Pembro vs Pembro vs Chemo Pembro vs Chemo Pembro vs Chemo Pembro + Pem/Platinum vs Dr. Roy Baynes Pembro vs Chemo EXTREME EXTREME Placebo + Pem/Platinum 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 9 0 9 0 9 0 9 0 9 0 9 0 9 0 8 0 8 0 8 0 8 0 8 0 8 0 8 0 7 0 7 0 7 0 7 0 7 0 7 0 7 0 6 0 6 0 6 0 6 0 6 0 6 0 6 0 O S , % O S , % O S , % O S , % O S , % O S , % O S , % 5 0 5 0 5 0 5 0 5 0 5 0 5 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 3 0 3 0 3 0 3 0 3 0 3 0 3 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 4 8 1 2 1 6 2 0 2 4 2 8 3 2 0 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 0 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 0 6 1 2 1 8 2 4 3 0 3 6 4 2 0 6 1 2 1 8 2 4 3 0 3 6 4 2 0 6 1 2 1 8 2 4 3 0 3 6 4 2 0 3 6 9 1 2 1 5 1 8 2 1 M o n t h s M o n t h s M o n t h s M o n t h s M o n t h s M o n t h s M o n t h s N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k 1 07 86 59 45 29 13 5 1 0 1 33 1 06 85 65 47 24 11 2 0 2 57 1 96 1 52 1 10 74 34 17 2 0 2 99 2 24 1 89 1 07 59 22 2 0 4 13 3 05 2 51 1 44 73 24 2 0 6 37 4 63 3 65 2 14 1 12 35 2 0 4 10 3 77 3 47 2 78 1 63 71 18 0 1 15 76 48 23 14 4 3 2 0 1 22 1 00 64 42 22 12 5 0 0 2 55 2 07 1 31 89 47 21 9 1 0 3 00 2 31 1 49 75 40 11 1 0 4 05 3 13 2 10 1 06 53 14 1 0 3 67 4 85 3 16 1 66 88 24 1 0 2 06 1 83 1 49 1 04 59 25 8 0 1L Gastric, CPS ≥1 1L Gastric, CPS ≥10 2L HCC, Any PD-L1 2L+ HNSCC, Any PD-L1 1L HNSCC, Any PD-L1 1L HNSCC, CPS ≥1 1L SQ NSCLC, Any PD-L1 KEYNOTE-062 KEYNOTE-062 KEYNOTE-240 KEYNOTE-040 KEYNOTE-048 KEYNOTE-048 KEYNOTE-407 Pembro vs Chemo Pembro vs Chemo Pembro vs Placebo Pembro vs SOC Pembro vs EXTREME Pembro + Platinum vs Pembro + Carboplatin/Taxane vs EXTREME Placebo + Carboplatin/Taxane 1 0 0 1 0 0 1 0 0 1 0 0 9 0 9 0 1 0 0 1 0 0 1 0 0 9 0 9 0 9 0 9 0 8 0 8 0 9 0 8 0 8 0 8 0 8 0 7 0 7 0 8 0 7 0 7 0 7 0 7 0 7 0 6 0 6 0 6 0 O S , % O S , % 6 0 6 0 6 0 6 0 O S , % 5 0 5 0 5 0 O S , % O S , % O S , % O S , % 5 0 5 0 5 0 5 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 3 0 3 0 3 0 3 0 3 0 3 0 3 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 6 1 2 1 8 2 4 3 0 3 6 4 2 0 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 0 3 6 9 1 2 1 5 1 8 2 1 0 6 1 2 1 8 2 4 3 0 3 6 4 2 0 4 8 1 2 1 6 2 0 2 4 2 8 3 2 0 5 1 0 1 5 2 0 2 5 3 0 0 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 4 5 5 0 M o n t h s M o n t h s M o n t h s M o n t h s M o n t h s M o n t h s M o n t h s N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k N o . a t R is k 92 62 52 45 32 13 4 0 2 78 2 37 1 90 1 52 1 10 57 16 1 0 2 47 1 60 1 03 48 14 2 0 3 01 2 26 1 72 1 25 99 75 46 22 13 1 0 2 81 2 27 1 69 1 22 75 40 10 1 0 2 78 2 56 1 88 1 24 62 17 2 0 2 56 1 62 1 20 94 59 23 4 0 90 70 42 28 16 7 0 0 2 78 2 27 1 47 1 00 51 20 5 1 0 2 81 2 46 1 75 93 45 16 4 0 2 50 1 92 1 14 75 38 15 2 0 1 35 1 13 84 65 42 23 8 1 0 2 48 1 51 82 34 10 1 0 3 00 2 45 1 58 1 07 72 51 28 11 6 0 0 50

KEYTRUDA: KEYTRUDA: STILL STILL IN EARLY INN IN EARLY INNINGS INGS OF DEVEL OF DEVELOPMENT OPMENT >600 >600 Combination Combina tion tr trials ials >100 >100 >1,000 >1,000 Trials in rials in Ongoing Ongoing adjuva adjuvant / nt / neoad neoadjuv juvant t Dr. Roy Baynes clinical linical and and ear earlier lier lines lines trials tr ials >75 >75 Registr gistrationa tional l tr trials ials unde underw rway Conti tinuing g to to build a wall o of d data ta 51

KEYTRUDA: KEYTRUDA: ROBUST I ROBUST I-O O PROGRAM PROGRAM IN ADJUVANT IN ADJUVANT / / NEOADJUVANT AND NEOADJUVANT AND EARLIER LINES EARLIER LINES OF THERAPY OF THERAPY 2018 2018 2021 2021 2023 2023 2025 2025 Adjuvant Melanoma (KN-054) NSCLC Adjuvant (KN-091) Gastric & Esophageal Adjuvant Adjuvant / Neoadjuvant MIBC (KN-866) APPROVED HNSCC Adjuvant / / Neoadjuvant (KN-585) Adjuvant / Neoadjuvant MIBC (KN-905) Neoadjuvant (KN-689) HNSCC Locally Advanced HCC Adjuvant (KN-937) (KN-412) NSCLC Stage I/IIa (KN-867) Dr. Roy Baynes 2019 2019 2022 2022 2024 2024 2026+ 2026+ TNBC Neoadjuvant / Adjuvant Melanoma (KN-716) NSCLC Neoadjuvant (KN-671) TNBC Adjuvant (KN-242) Adjuvant (KN-522) RCC Adjuvant (KN-564) cSCC Locally Advanced (KN-630) cSCC Locally Advanced 2L NMIBC (KN-057) ER+ / HER2- Breast Cancer (KN-629) MIBC Locally Advanced Adjuvant / Neoadjuvant (KN-756) (KN-676) Many r registrati tiona nal t trials w with r readout outs o over t the comi ming g years 52