Annual Report 2021

Operating Activities

(11) Marketing and selling expenses

Accounting and measurement policies

Marketing and selling expenses

Marketing and selling expenses within logistics costs also include expenses for transportation services performed on behalf of customers. The corresponding income from these services is reported under net sales.

Amortization of the intangible assets under marketing and selling expenses is mainly attributable to customer relationships, marketing authorizations, licenses and similar rights, brands, and trademarks, which can be functionally allocated to Marketing and selling.

Marketing and selling expenses comprised the following items:

€ million





Sales force





Internal sales services





Sales promotion










Amortization of intangible assets1





Royalty and license expenses





Other marketing and selling expenses





Marketing and selling expenses






Excluding amortization of internally generated or separately acquired software.

The increase in expenses for sales promotion is due to increased advertising activity following the relaxation of measures to combat the Covid-19 pandemic. In addition to the higher sales volume, the increase in logistics expenses was due to price rises resulting from capacity bottlenecks in international goods transportation.

The decrease in amortization of intangible assets was related to the regional expiration of distribution rights for Xalkori® in the business sector Healthcare. The downturn in the Life Science business sector was due to assets reaching the end of their scheduled useful lives.

Of the royalty and license expenses, € 48 million (2020: € 41 million) related to the commercialization of Erbitux®, while € 44 million (2020: € 51 million) related to license expenses in connection with the commercialization of Glucophage® in China.

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