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1 Annual Report 2006 Value through Innovation nopq

2 Financial Highlights Boehringer Ingelheim group of companies Amounts in millions of EUR, unless otherwise indicated change Net sales 10,574 9, % by region Europe 31 % 33 % Americas 51 % 48 % Asia, Australasia, Africa 18 % 19 % by business area Human Pharmaceuticals 96 % 96 % Animal Health 4 % 4 % Research and development 1,574 1, % Personnel costs 2,836 2,671 6 % Average number of employees 38,428 37,406 3 % Operating income 2,140 1, % Operating income as % of sales 20.2 % 20.2 % Income after taxes 1,729 1, % Income after taxes as % of sales 16.4 % 15.9 % Shareholders equity 5,175 4, % Return on shareholders equity 37.4 % 34.2 % Cash flow 2,317 2, % Investments in tangible assets % Depreciation of tangible assets % Top 5 products Prescription Medicines Net sales 2006 in millions of EUR change spiriva 1, % micardis % flomax % combivent % mobic % Top 5 products Consumer Health Care Net sales 2006 in millions of EUR change dulcolax % mucosolvan % pharmaton % buscopan % bisolvon %

3 Contents 1 Value Through Innovation 2 The Shareholders Perspective 4 Key Aspects of Our Caring Culture 10 There is help 14 Our People 18 Caring for our Neighbours 22 Our Environment & Employee Safety 27 Our R & D Drive 28 Targeting tomorrow s therapies 32 Our R & D Strategy 38 Our Expertise in Landmark Studies 40 From Mind to Man The R & D Process 42 New Biological Entities (NBE) 43 Biomarker & Pharmacogenetics 45 Serving Patients * 46 I wake up refreshed Human Pharmaceuticals 60 My recovery came fast 78 Now I know how to keep them under control 80 From Plant to the Pharmacy The buscopan Story 81 Consumer Health Care 84 Our friend Tom 87 Animal Health There is help In Kenya, about 50,000 newborn babies a year are estimated to acquire HIV from their infected mothers. Worldwide UNAIDS talks of 2.3 million cases of AIDS-diseased children. [page 10] Targeting tomorrow s therapies Focusing on both biopharmaceutical and small molecule drugs, Boehringer Ingelheim has embarked on a major drive to discover and develop new cancer drugs. [page 28] 91 Our Customer Orientation 92 Biopharmaceuticals How Innovations are Made 95 Pharmaceuticals Production and Pharma Chemicals 97 Counterfeits A Real Threat for Patients 99 Group Management Report 115 Consolidated Financial Statements Overview of the Major Consolidated Companies 118 Consolidated Balance Sheet 119 Consolidated Profit and Loss Statement 120 Cash Flow Statement 121 Statement of Changes in Group Equity 122 Notes to the Consolidated Financial Statements Auditor s Report Our friend Tom Every year, about 10 % of all horses suffer from equine colic, a disease that can prove life-threatening. [page 84] Now I know how to keep them under control Abdominal pains and cramps, a widespread ailment, is more common in women than in men and can affect people still in their teens. [page 78] My recovery came fast Stroke is a serious disease. It is the third leading cause of death after heart disease and cancer and the most important reason for medical disability. [page 60] I wake up refreshed... Hypertension is not only an unpleasant condition that keeps people from doing what the things they like. It is also a serious cardiovascular risk that can be the precursor to stroke and heart attack. [page 46] 142 Glossary Flap Comparison of Balance Sheet / Financial Data * The patient reports are authentic reports which refer to personal experience only. Please acknowledge that other patients may experience different treatment results. Individual treatment schemes have always to be discussed between patient and physician case by case. please turn over

4 Value through Innovation Our vision drives us forward. It helps us to foster value creation through innovation throughout our company and to look to the future with constantly renewed commitment and ambition. Boehringer Ingelheim is a research-driven group of companies dedicated to researching, developing, manufacturing and marketing pharmaceuticals that improve health and quality of life. Our business consists largely of Prescription Medicines, Consumer Health Care, Biopharmaceuticals and Animal Health. We focus on the production of innovative drugs and treatments that represent major therapeutic advances. Excellence in innovation and technology guides our actions in all areas. Our products have long been highly successful in the treatment of respiratory, cardiovascular, central nervous system, urological and virological disorders. In addition we have intensified our research into the immune system, metabolic diseases and oncology. Boehringer Ingelheim, which currently has more than 38,400 employees, has 137 affiliated companies spread around the globe. We have research and development facilities in ten countries and production plants in more than 20. Our Human Pharmaceuticals research and development in our Prescription Medicine spending corresponds to about 18 % of net sales in this business. Our headquarters is at Ingelheim, the German town where the company was founded in 1885.

5 The Shareholders Perspective Dear Reader, Family-owned companies such as Boehringer Ingelheim are attracting considerable interest these days. As their strategy and investments are often directed towards ensuring the continuation of the company in the long term, family-owned companies have often proved to be particularly stable and crisis-resistant, especially in the volatile market conditions of recent years. The success of value-based family-owned companies is also confirmed by various surveys and indices comparing family-owned companies with listed ones. It is borne out by our own success as well. Boehringer Ingelheim s sales growth this past financial year exceeded the market average for the seventh year in a row, allowing us to improve our world market share yet again. Benchmarking operating margins also show Boehringer Ingelheim to be well positioned. That our commercial success has also allowed the corporation to take on more employees is particularly gratifying. Over the past ten years, Boehringer Ingelheim has increased its personnel capacity by 5 % per annum on average. We are a research-driven pharmaceutical company. The guiding principles in our Leitbild give top priority to the development of innovative medicines for the benefit of patients worldwide. The same applies to our endeavours in animal health as well. Innovation and the quality of our products drive our success and materialise many years of research and development. The development of innovative substances with an efficacy superior to those already available will be crucial to our success in the future. The market demands that productivity be constantly raised throughout the value chain. Our employees are the driving force behind the innovations required at any one stage of our complex processes. We rely on their integrity and commitment. It is also important for us to remain an employer of choice for our own employees and for people outside the company. That Boehringer Ingelheim, as numerous external comparisons have shown, is one of the most interesting and desirable employers in many countries is a source of great pride. Boehringer Ingelheim certainly has the corporate culture, the size and the structure to enable us to identify with a common strategy and to help shape it, too. Such an environment is essential to innovation and excellence. We believe that our corporate culture, with its focus on how we work together in a great team, is a significant prerequisite for motivating our employees to achieve still more innovative solutions for patients, progress and economic success. The year 2006 was again one of market consolidation in the pharmaceutical industry. And this trend with mergers and acquisitions is most likely to continue. The main reason for this is a very simple one: lack of productivity in R&D. Boehringer Ingelheim A n n u a l R e p o r t

6 Christian Boehringer, Chairman of the Shareholders Committee Boehringer Ingelheim s shareholders have set the course for the future in such a way that we can continue to build on the successful development of recent years as an independent company. This applies not only to the corporate strategy decided jointly with the Board of Managing Directors, but also to the make-up of both the Board and the Shareholders Committee. After 32 years of highly successful commitment to Boehringer Ingelheim, as Chairman of the Board of Managing Directors, and since 2001 as Chairman of the Shareholders Committee too, Dr Heribert Johann took well deserved retirement as of 31 December Dr Johann played a key role in shaping our company s strategic development over the past 15 years and we are profoundly grateful to him for his unflagging commitment to Boehringer Ingelheim. We are confident of the continued motivation and loyalty of our employees, the expertise and experience of the Board and constructive commitment of our Advisory Board in the future. On behalf of the shareholders of Boehringer Ingelheim, allow me to congratulate all those I have mentioned on the very successful financial year Thank you all for your tremendous efforts. We look forward to continuing to work closely with our employees, the Board of Managing Directors and the Advisory Board for the good of Boehringer Ingelheim as a whole. Despite what is sometimes a difficult economic and political environment, and some highly competitive markets, we are confident that we are set to remain one of the world s leading pharmaceutical companies. The commitment of the owner-family to Boehringer Ingelheim, meanwhile, has been further strengthened by two important decisions taken in 2006: the move of family member Hubertus von Baumbach to the Board of Managing Directors at the beginning of 2009 and the increased involvement of other family members in the Shareholders Committee, which is now chaired again by a family member representing the increased commitment of the fourth generation of shareholders. Christian Boehringer Chairman of the Shareholders Committee The Shareholders Perspective

7 Key Aspects of was again a rewarding year for Boehringer Ingelheim. We grew faster than the market average for the seventh year in succession. While the global pharmaceutical markets are changing and mergers and consolidation efforts continue, we again maintained our successful course as an independent and dynamically growing pharmaceutical company. We are proud that we once again achieved our overall goal of helping people by making our medications available to patients through researching and developing new and innovative drugs. Our economic success in recent years mirrors the value of our medications for patients. Market analyses by the healthcare information provider IMS confirm that our +8.4 % growth rate was appreciably healthier than that of the pharmaceutical market in general (+6.1 %). Although our growth curve flattened out as a result of the generic competition that our antirheumatic drug mobic has been facing in the USA since summer 2006, we increased our market share in 2006 worldwide and in the USA to about 2 %. Overall, we are happy with our 2006 results. Success in serving patients Boehringer Ingelheim is a pharmaceutical company that generates almost 80 % of its net sales with prescription medicines. Yet we do not measure our success in financial key figures alone, but also, and of equal importance, in terms of the acceptance of our products and programmes. For instance, in conjunction with our donation programme for the anti-aids product viramune, we have so far succeeded in providing medication for almost 1 million mother-child pairs in around 60 countries for the prevention of mother-to-child transmission of HIV. About six million patients benefited from our product spiriva for chronic obstructive pulmonary disease (COPD). The number of patients using our anti-hypertension medicine micardis amounted to more than four million in Value through Innovation Naturally, the success of our products is reflected in our business results. In 2006, our net sales across all business areas grew by 11 % to almost EUR 10.6 billion. We were also pleased that we were able to increase the number of our employees by 3 % to 38,428 and so offer more than 1,000 new and qualified jobs around the world. Boehringer Ingelheim A n n u a l R e p o r t

8 Members of the Board of Managing Directors: Dr Hans-Jürgen Leuchs Dr Andreas Barner Dr Alessandro Banchi Prof. Marbod Muff (from left to right) The Prescription Medicines business area, which grew by 15 % to EUR 8.3 billion (compared to 2005) made the greatest contribution to sales growth. The most important products driving this growth included our leading product spiriva, with sales up 45 % to EUR 1.4 billion, micardis which grew by 34 % to EUR 967 million, and flomax /alna, for benign prostatic hyperplasia, which grew by 28 % to EUR 922 million. In US dollar terms, micardis and flomax thus represent two more Boehringer Ingelheim blockbusters alongside spiriva. In 2006, we were granted marketing authorisation for sifrol in the indication restless legs syndrome (RLS), both in Europe and the USA. Important and innovative clinical studies (phase I-IV) continued successfully, involving about 90,000 patients worldwide. These included the ontarget study (micardis ), uplift (spiriva ) and profess (aggrenox / micardis ). Well-filled pipeline Our product pipeline has further improved and is being progressively filled with substances from our research. We focus on respiratory and cardiovascular diseases, virology, central nervous system, immunology, metabolic diseases and oncology. In this last therapeutic area, for example, three anti-cancer drug candidates are now in clinical phase II development. Our projects are complemented by strategic alliances and the in-licensing of new compounds and technologies. Our late-stage pipeline also progressed well in phase III, and we were able to file the first indications of our lead anti-thrombotic compound dabigatran for registration in Europe at the beginning of Investments in research and development in our prescription medicines increased again in 2006, up by 16 % to about EUR 1.5 billion; this corresponds to around 18 % of sales in this business area. Overall, our Consumer Health Care (CHC) business showed good development, in spite of an increase in sales of only 1 % to EUR 1.1 billion. Key Aspects of 2006

9 This growth was clearly restrained by the weakness of the Japanese market, where we generate almost 30 % of our CHC business. Excluding Japan, we achieved strong growth of about 9 %. Our international core brands, in particular dulcolax, pharmaton and buscopan, showed wholly positive development. As an outstanding complement to our gastrointestinal disease business, we successfully acquired zantac (for heartburn) for the important US market. Our CHC business accounted for about 10 % of our total net sales. Our Biopharmaceuticals business segment, which embraces contract manufacture and development for our international customers, declined by 8 % to EUR 503 million. This development was expected, despite plant running at full capacity, as the 2005 business year benefited from extraordinary effects caused by special projects that helped boost sales by 40 %. Boehringer Ingelheim is not only strategically committed to the Human Pharmaceuticals business but also to Animal Health. Here, sales in 2006 rose by 4 % to about EUR 374 million, giving growth above the market average. Adjusted for extraordinary and currency effects the Animal Health business grew by 8 %. According to the market research institute Wood Mac- Kenzie, Boehringer Ingelheim, with a market share of about 3 %, ranks 10th in the international ranking of animal health companies. The most important products in this business area include the anti-inflammatory product metacam, vetmedin, a product for treating chronic heart disease in dogs, as well as the pig vaccines enterisol ileitis (against diarrhoea) and ingelvac prrs (against porcine reproductive and respiratory syndrome). The outlook remains good The picture seen in recent years has not changed. Boehringer Ingelheim s growth in 2006 was excellent across all regions of the world. The Americas region grew very well in spite of the sales decrease of mobic due to generic competition in the USA, with sales rising by 18 % to EUR 5.4 billion. But not only the USA (+20 % to 4.5 billion) performed well. Other countries, in particular Mexico, with its vigorous 27 % growth (to EUR 300 million), put in an excellent performance, too. Europe showed a rather gratifying development, growing by 6 % to EUR 3.3 billion. France (+19 % to EUR 263 million), the Regional Center Vienna with its expanding East European business (+13 % to EUR 362 million) and Spain (+10 % to EUR 349 million) developed very well. That Germany, on the other hand, stagnated in 2006 (+1 % to EUR 822 million) was a result of the expiry of our patent on alna on top of the very difficult pharmapolitical impacts. In the Asia, Australasia, Africa (AAA) region, Japan is showing encouraging signs of growth (currency adjusted +6 % to EUR 1.2 billion). In Japan, we were for the second year in a row the fastest growing company among the top 25 in prescription medicines; we would like to pay a special tribute to our Japanese employees. Gratifying growth and effective cost management led to increased operating income for the company, as reflected in our results. Operating income rose by 11 % to over EUR 2.1 billion. This corresponds to a return on sales of 20.2 %. Boehringer Ingelheim A n n u a l R e p o r t

10 The outlook for further business development at Boehringer Ingelheim remains good. Drugs with patent protection or exclusivity will continue to be our main growth drivers. These products are expected to account for more than 60 % of net sales in We also expect to grow in line with the market in 2007 due to the generic competition of mobic in the USA, which will put pressure on our growth rate for the first half of the year. However, our major products still have high growth potential. We also hope that 2007 will see registration granted in Europe for our new and, for patients, innovative device, the respimat Soft Mist Inhaler, for our most important product spiriva. And more importantly, we rely on top-class worldwide teams of highly committed and skilled employees. In spite of the increasing health policy restrictions in many countries, we continue to look towards the future with optimism. Dr Alessandro Banchi Dr Andreas Barner Dr Hans-Jürgen Leuchs Prof. Marbod Muff Key Aspects of 2006

11 Shareholders Committee Advisory Board Board of Managing Directors Dr Heribert Johann (until ) Chairman of the Shareholders Committee Christian Boehringer (from ) Chairman of the Shareholders Committee Albert Boehringer Christoph Boehringer Ferdinand von Baumbach Hubertus von Baumbach Dr Mathias Boehringer Prof. Michael Hoffmann-Becking Attorney at Law, Düsseldorf Chairman of the Advisory Board Dr Rolf-E. Breuer Chairman of the Supervisory Board Deutsche Bank AG, Frankfurt (Main) Prof. Fredmund Malik Chairman of the Board Managementzentrum St. Gallen Holding AG Prof. Axel Ullrich (until ) Director of the Max Planck Institute for Biochemistry, Martinsried Dr Heinrich Weiss Chairman of the Board SMS AG, Düsseldorf Dr Alessandro Banchi Corporate Board Division Chairman of the Board Corporate Board Division Pharma Marketing and Sales Dr Andreas Barner Vice-Chairman of the Board Corporate Board Division Pharma Research, Development and Medicine Dr Hans-Jürgen Leuchs Corporate Board Division Operations Corporate Board Division Animal Health Prof. Marbod Muff Corporate Board Division Finance Corporate Board Division Human Resources

12 Our caring culture

13 There is help The woman who came to my hospital was pregnant. Her husband accompanied her. And she had AIDS. When I asked her how she had acquired the disease she just turned to her husband and glanced at him. He lowered his head and looked at the ground. Dr Charles Wanyonyi, Medical Director of Pumwani Maternity Hospital in Nairobi, Kenya, has seen many patients like this woman. Promiscuity, carelessness, superstition or lack of information and education contribute to the spread of the deadly disease. Stigma and discrimination also have a persistent, negative impact in many countries. In Kenya, about 50,000 newborn babies are estimated to acquire HIV from their infected mothers every year. Worldwide, UNAIDS talks of 2.3 million cases of AIDS-diseased children. Most of them will die before they are five years old. Hence the forceful call from former UN Secretary-General Kofi Annan, a man deeply committed to the struggle against AIDS: We must prevent the cruellest, most unjust infections of all those that pass from mother to child. The infection does not necessarily occur only in the womb during pregnancy. The baby may also come into contact with the mother s infected body fluids during labour and delivery. Finally, they may acquire the virus from their HIV-positive mother s breastmilk. Without treatment, around % of babies born to HIV-positive women will become infected with HIV during pregnancy and delivery. A further 5 20 % will become infected through breast feeding. There is help. Adelaide Moraa Ayiechad, a midwife from Dr Wanyonyi s hospital in Kenya, says: A baby can be protected from contracting HIV by using nevirapine, so long as the medication is given in time. Nevirapine, marketed by Boehringer Ingelheim worldwide under the tradename viramune, has proven to significantly reduce the transmission of the virus from mother to child. Just one tablet taken by the mother during labour and a dose of viramune suspension given to the baby within the first 72 hours after birth can reduce the rate of transmission by about 50 %, as demonstrated in clinical studies. Saving hundreds of thousands of lives In its commitment to expanding access to antiretroviral therapy for developing countries, Boehringer Ingelheim has since 2000 been giving free access to nevirapine through the viramune Donation Programme (VDP). The company currently donates the product to 156 programmes in 59 countries in Africa, Asia, Latin America and Eastern Europe. continued on page 12

14 Examination at Pumwani Maternity Hospital, Nairobi, Kenya, where HIV-infected women and their babies receive treatment with nevirapine to prevent mother-to-child transmission of HIV.

15 A Kenyan mother, having just delivered twins, undergoes HIV counselling and testing under the prevention of mother-to-child transmission programme at Pumwani Hospital, Nairobi. continued from page 10 So far, a total of almost one million mother-and-child pair doses have been supplied free of charge, with the greatest proportion directed to sub-saharan Africa, epicentre of the AIDS pandemic. The VDP continues to develop and the numbers still receiving the medication are rising. The programme is open to any government, NGO, charitable organisation or other healthcare providers actively involved in the prevention of mother-to-child transmission (MTCT) based on local government approval and registration, according to World Health Organization (WHO) donation guidelines. Boehringer Ingelheim has contracted Axios International, a distributor of healthcare supplies in the developing world, to provide technical assistance to support the implementation of the VDP. Provided free of charge by Boehringer Ingelheim, nevirapine is straightforward to use and ideally should be part of a full treatment schedule. But if this is not possible, it can also be used alone. I feel tremendously privileged to have participated in the discovery and development of a drug that is having the impact that nevirapine is having throughout the world, says Professor John L. Sullivan from the University of Massachusetts Medical School, who has made a decisive contribution to the viramune clinical trials. The single-dose nevirapine regimen has won the support of the public health and HIV/AIDS treatment communities as, in some countries, it may be the only therapy available for preventing HIV transmission to infants during birth. Although the most recent WHO guidelines (2006) continue to recommend single-dose nevirapine use as a practical option in resource-limited settings, there is general agreement that whenever possible single-dose nevirapine should be used in combination with short courses of other antiretroviral drugs to decrease the development of resistance. In addition to the VDP programme, Boehringer Ingelheim has granted in the past years local and internationally operating manufacturers licenses to produce and sell nevirapine for use in anti-hiv combination therapy for the sub-saharan Africa. Boehringer Ingelheim has now expanded its access policy which will make it easier for local and internationally operating manufacturers to produce and sell nevirapine for treatment in anti-hiv combination therapy for the whole of Africa and least developed countries, according to the World Bank and UNDP standard. This new access policy is made available for all producers of nevirapine containing products pre-qualified by the WHO, irrespective of local patent issues or place of production. 12 Boehringer Ingelheim A n n u a l R e p o r t

16 our caring culture Mothers deliver healthy babies Interview with Dr Charles Wanyonyi What is the situation in your area in terms of the HIV infection rate? The rate of HIV-infected people has gone down from 13 % in 2003 to at the moment 8-9 % of Kenya s population. This drop is showing that the rate is now stabilising and is being brought under control. How long have you been using nevirapine at your hospital? We introduced a prevention of mother-to-child transmission programme in 2003, the aim of which was to inform HIVpositive expectant mothers about how to protect a baby from contracting the virus. They are also told of the importance of using nevirapine and we have been using it since then. How many mother-child pairs have been treated with nevirapine so far? Since we started the programme, we have handled approximately 4,500 cases. What is your opinion of nevirapine in terms of its efficacy and safety? Nevirapine is very effective and has helped many HIV-positive mothers deliver healthy babies. I must say that there has been a drastic drop of mother-to-child transmission during delivery. I have seen the drug work in a baby whose blood had been in contact with the virus during birth and where a dose of nevirapine had been given, which had then caused the virus to be wiped out and the antibodies to disappear. Consultant obstetrician and gynaecologist Dr Charles Wanyonyi is Medical Director of Pumwani Maternity Hospital (PMH), the largest maternity institution in the East and Central Africa region. Located in Nairobi, the Kenyan capital, it is the most active site in Kenya for preventing mother-to-child transmission (PMTCT) of HIV. Dr Wanyonyi oversees the day to day running of PMH which provides antenatal, delivery and postnatal services, midwife training, research activities and healthcare programmes, such as PMTCT. VIRAMUNE Donation Programme 13

17 Our people In pursuing our vision to create Value through Innovation, we build on the inspiration, expertise and dedication of our more than 38,400 people around the world. Their striving for continuous innovation and discovery of novel solutions enable us to maintain our growth, to sustain high-level performance and prepare for future challenges. Supported by our Leitbild (guiding principles) and our long-term strategic direction, we continue to focus on core issues for enhancing our people s capabilities and their passion to pursue our vision everywhere we operate. A key element of our sustained success at Boehringer Ingelheim is the way we work together. Guided by fundamental questions contained in Lead & Learn, our common cultural understanding, we are individually and collectively called on to shape an environment where creativity, challenge, team-spirit, respect and fairness flourish. Interdisciplinary teams throughout our organisations continue to support this aspiration with unconventional and inspirational ways of questioning, sharing and learning from each other. Preferred employer recognition The strength of our distinctive working culture is winning wide acknowledgement from prestigious, independent workplace surveys (see page 17). We regard these awards as an affirmation of our success in establishing a demanding yet highly attractive working environment. The surveys increasingly place us among the most preferred employers, giving us a competitive advantage in recruiting and retaining the best talent. In 2006, Boehringer Ingelheim was listed No. 2 among the top 20 employers of scientists in a respected survey among researchers in the USA and Europe (see page 15). Preparing for the future To ensure our sustained, positive development, a number of our organisations devoted substantial attention in 2006 to capitalising on opportunities to improve business and operating efficiency beyond existing continuous improvement. Hence, processes have been launched in which our employees have contributed powerful insights into how we can reinvent ourselves, create structures and processes for better serving the marketplace, reducing costs and redundancies, as well as working more efficiently and securing breakthroughs. 14 Boehringer Ingelheim A n n u a l R e p o r t

18 our caring culture Personnel costs in millions of EUR 2,836 2,671 2,443 2,252 2,175 Personnel costs as % of net sales Number of employees (incl. apprentices) 38,428 37,406 35,529 34,221 31,843 As many of our country organisations will be challenged by an increasingly ageing workforce and shortage of qualified new entrants, we have set out to emphasise the options available and the opportunities to be seized in this development. While measures promoting lifelong learning for all, diversity management, enabling better work-life balance, maintaining and enhancing physical, mental and social well-being are well anchored and the scope for improvement continuously scrutinised, we have now embarked on a course designed to prompt ideas and actions from everyone at Boehringer Ingelheim that will benefit all. A model of our successful adaptation to changing employment requirements is offered by Boehringer Ingelheim Germany. With kindergartens on two sites, educational supervision for schoolchildren during the summer holidays and interns for employee children, flexible working times, more than 100 varying part-time working models and access to elderly care services as well as emergency caring arrangements, the organi- The No. 2 for scientists Its clear orientation towards values makes Boehringer Ingelheim a top employer in the pharmaceutical industry, according to a web-based Science survey from October In particular, it found that the respectful treatment of employees, their loyalty and the social orientation of the company rank Boehringer Ingelheim the second most attractive employer (from number 8 last year) to scientists in the USA and Western Europe. Hans-Joachim Geppert, Head of Corporate Division Human Resources at Boehringer Ingelheim says: We try to provide a working environment for our employees where they can challenge assumptions, make decisions and where they find the freedom to implement innovations. In other categories, such as clear vision to the future or innovative leader in the industry, Boehringer Ingelheim also ranked top. The 656 respondents were mainly employed in the biopharmaceutical and biotechnology sector (67 %), where Boehringer Ingelheim is one of the leading international companies. Two thirds of the respondents held Ph.D.s. Our people 15

19 We believe the center will stand out noticeably among the many other outstanding benefits we offer, such as our excellent relocation policy, David Nurnberger, Senior Vice-President Human Resources, says. It might even be one of the main reasons a candidate would choose to work at Ridgefield, since working people with children can readily appreciate its value and convenience. At full capacity, the center will have about 35 teachers, all of whom must have a degree in either education or human service. The learning center is headed by Katrina Maloney, who has a degree in early childhood education and has worked with children for over 17 years. We are an early learning center; we re not babysitting children all day. We have very specific curricula, from infants all the way up to the oldest children at the center, Ms Maloney says. Company childcare enters new territory In an old orchard on Boehringer Ingelheim s sprawling US campus in Ridgefield, Connecticut, a long, one-story building fits discretely into its surroundings. This is the Apple Blossom Children s Learning Center, an exciting new venture in company childcare provision. The building reflects the architectural language of the site, Boehringer Ingelheim s US headquarters, where some 2,200 people are employed, many in research and development. The Apple Blossom Center, inaugurated in September 2006, will take care during the week of up to 156 children from only six weeks old up to 12 years of age. It is open from 6.30 a.m. to 6.30 p.m. A group has one or more rooms to itself, with the distribution dependent on the numbers enrolled in the various groups. The center, which assigns two teachers to every room, also provides private kindergarten and after-school care. It also has a drop-off programme. Boehringer Ingelheim provides childcare at several of its sites, focusing primarily on the pre-school age group. In Germany, the company s Ingelheim and Biberach sites run all-day crèches for very young children (both in cooperation with external partners), taking employees children and children from the surrounding community. The company s kindergarten provision is also conducted in cooperation with the local authorities at the Italian sites, Milan and Florence. In Spain, for example, the company runs an annual summer camp in which about 120 children took part in Boehringer Ingelheim A n n u a l R e p o r t

20 our caring culture sation received highly esteemed certification for its achievements and commitment to making the employment conditions more family-friendly (see page 16). Our German operating unit furthermore had 667 apprentices in 2006 (+2.6 %), again exceeding the previous year s total engaged in internal vocational programmes. Enhancing our capabilities To enhance the knowledge of our employees and support life-long learning, the Boehringer Ingelheim Academy, with its many options from vocational subjects to leadership development, offers all employees a unique source of information about available qualification and updating opportunities. Awards 2006 Our biannual International Management Development Programme is one of our popular leadership enhancement schemes and is the object of external industry benchmarking and research. Our international and interdisciplinary development approach involves around 100 potentials learning and working on stretching topics of strategic relevance over 14 months. International projects and assignments continue to be at the core of our global capability development strategy. Placements lasting up to two years have increased considerably. The aim of all these measures is to assign individuals to tasks in which their skill sets are most required and can best benefit the business, and to enable them to gain international experience in dealing successfully with different economies cultures, and business practices, while appreciating the rich diversity of our corporation. Country Ranking Survey Argentina 8 Best Employers in Argentina (Apertura Business Magazine) Austria 23 Great Place to Work: The best companies to work for in Austria Belgium The fastest growing large companies Brazil among Top 10 Great Place to Work: The best companies to work for in Brazil Brazil Great Place to Work: The best companies to work for in Latin America Denmark 7 Denmark s Best Workplaces Finland Great Place to Work: The best companies to work for in Finland France 12 Great Place to Work Netherlands The 49 Preferred Employers in the Netherlands Netherlands bronze Great Place to Work United Kingdom Best Companies to Work for (Sunday Times) USA (Ben Venue) among Top 100 North Coast 99 Award USA/Europe 2 Science Survey Great Place to Work, USA, is an international initiative that has been undertaken for many years in various countries to evaluate the world of work and employee satisfaction. Our people 17

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