Group III

Executive Summary
Merck & Co, even though the competition and government regulation had made significant strides driving our strategy, delivering top-line revenue and bottom-line earnings growth while reconfirming our long-term commitment to scientific and medical innovation. The overall performance in 2011 confirms Merck ability to deliver strong operational results in the short-term while investing for growth over the longer term. Specifically, during 2011, Merck : 1. Delivered non-GAAP EPS of $3.77, which was 10% higher than 2010 non-GAAP EPS and exceeded the internal targets; 2. Increased revenue by 4% over 2010; 3. Announced an 11% increase in the quarterly dividend; 4. Drove double-digit sales increases for key brands including, JANUVIA, SINGULAIR, ISENTRESS, JANUMET, GARDASIL, and ZOSTAVAX; 5. Gained approval for and launched several new products in key markets including VICTRELIS, the first in class drug to treat chronic hepatitis C, and a number of important medicines and vaccines in Japan; 6. Resolved the arbitration with Johnson & Johnson resulting in Merck retaining the majority of the value of the Companys interest in REMICADE and SIMPONI. 7. Made significant investments in the emerging markets and generated more than $7 billion in pharmaceutical and vaccine revenues from those markets; 8. Made strong progress against merger-related synergy goal, achieving more than $2.9 billion annualized 9. Net savings since the merger between Merck & Co., Inc. and Schering-Plough Corporation on November 10. 3, 2009 (the Merger);Launched Merck for Mothers, our new initiative to help create a world where no woman has to die from preventable complications of pregnancy and childbirth; 11. Entered into more than 50 licensing and alliance agreements to better position the Company for future growth; 12. Generated approximately $10.7 billion in free cash flow; and drove a 10% increase in total shareholder return. 13. As a result of these and other accomplishments, we achieved above target performance against the 2011.