1. 3rd Annual Managing Talent in Pharma Diversity Strategy Uxio Malvido EMEAC Diversity and Work Environment Leader Prague, March 19-20th 2009

3. Topics we will cover today Inclusion demographic trends Female Leadership Global Constituency Groups Business Case Employer Branding Flexibility Health 2.0 Multicultural Diversity Differently Able LGBT Generations Diversity Strategy Work-Life Balance Interfaith Social Networks Talent management practices Respect in the workplace External partnerships Engagement

4. Introduction Diversity Approach Business perspective: Impact of social changes in the workplace/marketplace Compliance: Equal Opportunities legislation in all major markets (global trend) Values: Mission and vision of the organization Business Case

5. Demography Social Values Tecnology The future is already here, It’s just not evenly distributed . Workplace Business Case Workforce Talent Marketplace Customers

6. Demography Physicians Demography: Feminization and Multiculturalism Source : Fundación CESM. Demografía Médica. Business Case

7. Multicultural Diversity implications Personality Culture Human Nature Universal Group Individual Innate and learned Learned Innate Ref: “Cultures and Organizations”, Hofstede, Geert Multicultural Diversity

12. Managing Female Representation Female Talent 40% Executive Country A (45%; 45%) Country B (46%; 36%) Country D (31%; 32%) Country C (45%; 26%) Retention Progression (Manager and Executive Levels ) Progression (Executive level ) 30% 50% C 50% 40% Manager 36% (Merck reference) Within the Region: Setting different local measures Company Marketplace Promotion (in) Promotion (out) Recruitment Turnover + _ Within the Countries: Understanding drivers of representation

15. GCGs and ERGs Global Constituency Groups ERG’s Society Social Networks Diversity Strategy

16. GCG Journey in 2008 February Global Launch March – April Expanding the Network June – Sep GCGs / CoEs Partnership October EC review and approval May Virtual Strategy Summit Initial thoughts on 4 Qs Input from SMEs Insights from Company strategic initiatives Each GCG self-organize around 4 Qs Input from other employees Research and benchmarking Each GCG integrates input from workstreams Identification of key success factors Prioritization Come as “One Voice” across GCG’s Refine work with CoE & Line to develop recommendations for EC 8 Vital Few Recommendations 4 internal and 4 external 17 quick-wins and medium-term actions

17. Complete installation of GCG recommend-ations; DWE&ER begins auditing regions/divisions for global diversity objectives Full integration of Diversity and Inclusion into our business model; all Merck operations engaged in D&I objectives Culture Survey scores at goal for our regions/divi-sions; best-in-class external recognition Timeline for Diversity realization Diversity Strategy Roll-out of initial GCG recommenda-tions; Expansion of ERGs to ex-US operations; global D&I training curriculum installed 2009 2012 2010 2011

18. Flexibility: Business Case Workforce Trends: Macro Trends: Flexibility

22. Global Flexible Work Arrangements – Guiding Principles Flexibility is good for our business and good for our people. Equitable consideration Flexible work arrangements are not an entitlement. Results are what count, not "face time." 1 2 3 4 The reason for a flexibility request is not part of the process. Flexibility does not limit career opportunities . Flexibility helps the company become an Employer of Choice. Flexibility is a two-way street 5 8 6 7

23. Support tools Flexibility

24. Q&A