Bayer Ag · XETR:BAYN
Bayer — Investor Day (March 2021)
16 slides from Bayer's investor day presentation, Mar 10, 2021
Slide 1: Value Creation by Accelerating our Transformation
Financials Value Creation by Accelerating our Transformation /////////// Capital Markets Day March 10-11, 2021 Wolfgang Nickl CFO Bayer AG
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the ac
Slide 3: We Create Value by Accelerating our Transformation
We Create Value by Accelerating our Transformation Driving Innovation and Returns 1 • Clear plan for translating Enable growth innovation into top-line growth • Comprehensive transformation 2 Drive profitability program launched 3 Focus on cash • Strong capacity to generate cash Value creation • Inc
Slide 4: Clear Plan for Achieving Growth over the Next Years
1 Enable Growth Clear Plan for Achieving Growth over the Next Years Sales / Sales Growth Divisional Drivers act cpa1 At month-end Dec’ 20 rates² 2020 2021e 2021e 2022e-2023e 2024e • Build on R&D leadership Crop • Expand leading digital platform €18.8bn ~ 2% ~€18bn 3% to 5% Science • Short stature co
Slide 5: New Transformation Program with Gross Contributions of >€1.5bn
2 Drive Profitability New Transformation Program with Gross Contributions of >€1.5bn Transformation programs Delivery €2.6bn • Implementation of Bayer 2022 ahead of plan > €1.5bn • We accelerate our transformation to become leaner and more agile ~70% of • Divisions and Enabling Functions gross gross
Slide 6: We Focus on Cash Generation
3 Focus on Cash We Focus on Cash Generation Improve Free Cash Flow Adapt incentive scheme Free Cash Flow integrated as a key Optimize working capital focusing performance metric in our short-term on overdue management, inventory incentive plan for all managerial and payables; prioritizing CapEx empl
Slide 7: Profitable Growth until 2024
Target Financials Profitable Growth until 2024 At constant currencies1 At ,month-end Dec’ 20 rates² 43 - 45 42 - 43 40 - 41 41.4 1 Enable Sales growth in €bn 7.00 - 7.50 6.39 6.10 - 6.30 5.60 - 5.80 2 Drive Core EPS profitability in € ~5** 1.3 Focus Free Cash Flow 3 on cash in €bn -3 - -4* -3 - -4*
Slide 8: Ambitious Measurable Targets for Sustainable Development
4 Sustainability Ambitious Measurable Targets for Sustainable Development 2030 Targets, in line with the UN SDGs Help more PEOPLE thrive Decrease ECOLOGICAL footprint Support 100m smallholder farmers in LMIC1) Climate neutrality at own sites + reduced emissions in our supply chain Reflected in Provi
Slide 9: Disciplined Capital Allocation
5 Disciplined Capital Allocation Disciplined Capital Allocation Capital allocation priorities Net financial debt development In €bn 35-36 Rating target: 30 28-30 Deleveraging A category Free Cash 3.2 Flow 2.8- Pay-out range: 3.0 Dividends 30-40% of cEPS Divestment proceeds1 External growth Bolt-on M
Slide 10: We Aim to Exceed our Cost of Capital Substantially by 2024
Value Creation We Aim to Exceed our Cost of Capital Substantially by 2024 ROCE (Return on Capital Employed) is a Key Performance Metric in our Long-term Incentive Plan WACC Profitability: Net op. profit / Sales 24e 10% 21e 8% 6.2% 6% ROCE = Return on Capital Turnover: Sales / Capital employed Capita
Slide 11: We Create Value by Accelerating our Transformation
Summary We Create Value by Accelerating our Transformation Driving Innovation and Returns • Despite the PH LoE impact, our new mid-term guidance for 2024 1 Enable growth shows solid growth with long-term blockbuster potential: Short stature corn, HT4 Soy, Cell & Gene Therapy • We drive profitability
Slide 12: Thank You!
Thank You! /////////// Capital Markets Day March 10-11, 2021 Wolfgang Nickl CFO Bayer AG
Slide 13: Key Assumptions
Key Assumptions • FX rates: All figures based on 2020 month-end December rates as disclosed below €1/ FX Rate BRL Brazil 6.37 CAD Canada 1.56 CHF Switzerland 1.08 CNY China 7.98 GBP United Kingdom 0.90 JPY Japan 126 MXN Mexico 24.4 RUB Russia 91.5 USD United States 1.23 • Free cash flow (FCF) define
Slide 14: Updated Earnings Profile since Capital Markets Day in 2018
Updated Earnings Profile since Capital Markets Day in 2018 ~10 Core EPS 2022 in € CMD 2018 Portfolio Currency PH: CS: CS: Other VBP Market / Mitigation China competition 14 /// Bayer Capital Markets Day /// Value Creation by Accelerating our Transformation /// March 10-11, 2021
Slide 15: Summary: Bayer Group Targets until 2024
Summary Summary: Bayer Group Targets until 2024 Targets 20241 1 Enable Sales €43bn - €45bn growth EBITDA margin ~ 28% 2 Drive before special items profitability Core EPS €7.00 - €7.50 Focus 3 Free cash flow ~ €5bn2 on cash Disciplined 4 Net financial debt €28bn - €30bn Capital allocation 1 Currency
Slide 16: Summary: Divisional Targets until 2024
Summary: Divisional Targets until 2024 Sales 2020 Sales Growth Sales Growth EBITDA EBITDA EBITDA margin 2021e 2022e/2023e 2024eS margin 2020 margin 2021e 2022e/2023e 2024e (before special items) (before special items) (before special items) act cpa1 At month-end Dec’ 20 act At month-end Dec’ 20 rate