OVERVIEW KEY PERFORMANCE INDICATORS

1 PERFORMANCE Data2015/2016 Corporate Responsibility ReportOVERVIEWKEY PERFORMANCE INDICATORSB elow are our key PERFORMANCE INDICATORS (KPIs) for eachof our four focus areas (Access to Health, EnvironmentalSustainability, Employees, Ethics & Transparency).The following list of KPIs serves as baseline measurement for our corporate responsibility activities. These INDICATORS aremeasured globally unless otherwise noted and cover all of our business units with the exception of joint click here to download a spreadsheet of all of our PERFORMANCE data, including CDP Climate Change and CDP Water responses are also available for downloading on CDP s Data2015/2016 Corporate Responsibility ReportACCESS TO HEALTH1 RESEARCH & DEVELOPMENT20112012201320142015 Top 20 global burdens of illness addressed by our products and pipeline253%55%88%88%88%GCP/PV audits by regulatory agencies or clinical trial investigators that led tosignificant fines, penalties.

2 Warning letters or product seizures00000 Established significant external licenses and collaborations35261403564 Narrative of compounds provided to product development partnerships4 OnlineOnlineOnlineOnlineOnlineMANUFACTUR ING & SUPPLYA nnual percentage of units manufactured/sold and recalled during a givenyear (recall rate globally) of local and regional manufacturing partnerships to enable access61308468104179 Number of products available by local and regional partnerships6NA343544991,157 REGISTRATIONNew product and device registrations7,8,9179204179176156 Local regulatory agency GCP/PV training requests fulfilled that will helpstrengthen agency capabilities in agencies GCP/PV-compliance-oversightrole10 OnlineOnlineOnlineOnlineOnlineProducts submitted that have achieved WHO pre-qualification1010111111 COMMERCIALIZATIONN umber of our products that are supported with differential pricing11,12,13 NANA243535 Number of low- and lower-middle-income countries where inter- and/or intra-country pricing has been implemented11,14 NANA70114121 Investment in patient- and provider-education programs15 (in millions)

3 $ $ $ $ $ INVESTMENTH ealth care workers trained through major programs and partnerships52,00038,00022,000137,00018, 669 Investment in partnerships for activities to address underlying barriers tohealth, such as health-system strengthening and capacity-building (inmillions)$35$24$24$32$31 People reached through our major programs and partnerships (in millions)273269302267188NA: Not available. NR: Not Unless otherwise noted, data for the Access to Health section are reflective of our Human Health business only; information on our Animal Health business is reported As defined by the Institute for Health Metrics and Evaluation (IHME).3 Candidates in our company s research pipeline or under regulatory review are as of February 19, 2016, as reported in the Securities and Exchange Commission for 10-K., page 16, filedon February 26, 2016.

4 This includes candidates in Phase II or Phase III trials, or under regulatory review as of February 26, 2016. As candidates attain regulatory approval, they are removedfrom this pipeline For information on product-development partnerships, visit the Partnerships tab at # Beginning in 2014, this figure includes recalls within our Animal Health In 2014, we expanded our reporting to all of our products, including the various strengths and presentations that are sold or distributed through a partnership in local markets, to moreaccurately reflect our efforts to address local Data include new products and new Data for all years have been updated based on a tracking-system upgrade that corrected miscounts in prior For information on new registrations by region, visit # For information on local regulatory agency GCP/PV training requests, visit In 2013.

5 We modified our key PERFORMANCE INDICATORS for differential pricing so that we can more broadly capture and accurately reflect our Differential pricing intended to facilitate access for the at-need Our products include HIV treatments, vaccines and other patented Countries as defined by the World Bank 2013 GNI Classification, including UN-defined least developed countries. 15 In 2013, we refined our support to prioritize and align resources to complement our core business strategy, which resulted in an overall decrease in Data2015/2016 Corporate Responsibility ReportENVIRONMENTAL SUSTAINABILITY1,220112012201320142015 Greenhouse gasemissions(metric tons of CO2e Scope 1 & 2)1,951,0001,872,0001,772,0001,643,0001, 453,000 Water usage (billiongallons) wastegenerated (metric tons)108,500109,50096,30083,70070,2001 Includes facilities In accordance with the Greenhouse Gas Protocol, prior-year data have been adjusted to add or remove facilities that have been acquired and also reflect changes in methodology to ensure consistency from year to & INCLUSION20112012201320142015 Executive roles held by women1,235%31%31%31%34%Women on the Board17%17%17%17%21%Underrepresented ethnic groups on theBoard11%25%25%25%21%Underrepresented ethnic groups ofexecutives ( )217%17%20%20%20%Underrepresented ethnic groups in theworkforce ( )29%24%24%24%26%WELL-BEING20112012201320 142015 Response rate to the Voice Survey363%77%77%78%NAEmployees who completed a healthassessment ( )58%58%62%57%58%Lost-time incident rate (LTIR) injury rate (RIR)

6 Who took release timeaccording to the global policy onemployee hours4213,000221,000NA186,40080,585NA: Not Beginning with 2012, data reported for women are global; previously, these data were limited to the Executive is defined as the chief executive officer and two structural levels In 2014, we moved to a biannual administration of our global employee engagement 2015 figures are based on employee self-recorded volunteer hours through MSD Gives Back in the and Puerto Rico, and volunteer hourscommunicated directly to the Office of Corporate Responsibility for all other countries. 2015 marks the first year in which volunteer-hour reporting isbased solely on employee self-report. Prior years included estimates for unrecorded volunteer Data2015/2016 Corporate Responsibility ReportETHICS & TRANSPARENCY20112012201320142015 Employees trained on our Code of Conduct90%92%99%99%99%Ratio of substantiated allegations toconcerns/issues raised65%60%58%60%58%Reported concerns regarding privacy practices,breaches of privacy, and losses of personal dataand devices that were substantiated168%23%26%18%96%1 Privacy concerns include all concerns escalated to our Privacy Office about the company s privacy practices.

7 Substantiated concerns are thosethat are determined to be inconsistent with our privacy standards or that involve the loss of, theft of or unauthorized access to personal data.