Slide 1: Q1 2024 Investor Call
///////////// Health for all, Hunger for none Q1 2024 Investor Call May 14, 2024
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: Bill Anderson, Chief Executive Officer
///////////// Health for all, Hunger for none BILL ANDERSON Chief Executive Officer
Slide 4: Business Update: On Track to Deliver the Year
Business Update: On Track to Deliver the Year Sales Core Free Q1 2024 Growth EPS Cash Flow (cpa) BAYER GROUP -1% €2.82 €-2.6bn Crop Science Pharmaceuticals Consumer Health Sales Growth (cpa) -3% +4% -2% EBITDA Margin (before special items) 36.0% 27.4% 23.1% cpa = currency and portfolio adjusted 4 //
Slide 5: Strategic Update: Progress on Our Top Priorities
Strategic Update: Progress on Our Top Priorities Growth & Innovation: Litigation: • Pharma: Positive Elinzanetant topline data, • PCB: Important win in appeals court Acoramidis inlicensing • Glyphosate: Joining forces with Modern Ag • Crop Science: Q1 sales outperformed market Coalition with annual
Slide 6: Our Transformation: Scaling at High Speed
Our Transformation: Scaling at High Speed # Customer and Product Teams: By end of 2024, every part of Bayer will have started Dec ’23: < 50 Mar ’24: ~ 300 Apr ’24: > 500 working in the new operating model. Crop Science Pharmaceuticals Consumer Health // NA and LATAM: all customer // Following >70 te
Slide 7: Going Forward: What We Are Focused On
Going Forward: What We Are Focused On Readouts on finerenone’s first phase III study in heart failure and darolutamide’s ARANOTE trial Introduction of Preceon Smart Corn System in US (breeding version), preparing for broader scale launch (biotech version) Ongoing launch effectiveness in Consumer Hea
Slide 8: Wolfgang Nickl, Chief Financial Officer
///////////// Health for all, Hunger for none WOLGANG NICKL Chief Financial Officer
Slide 9: Q1 2024: In Line With Expectations
Q1 2024: In Line With Expectations Q1 2023 Q1 2024 ∆% yoy in €bn -1% cpa Net Sales 14.4 13.8 Currency headwind of €0.5bn (-4% rep) EBITDA 4.5 4.4 Lower Crop Science result partly (EBITDA Margin) -1% offset by less incentive provisions; (31.1%) (32.1%) currency headwind €0.2bn before special items Co
Slide 10: Q1 2024: Expected Decline in EMEA Crop Protection Partially Compensated by Strong Pricing in Corn
Q1 2024: Expected Decline in EMEA Crop Protection Partially Compensated by Strong Pricing in Corn Crop Science Q1 2024 Net Sales EBITDA Volume €m, before special items €m, ∆% yoy 0% EBITDA Margin before special items -3% cpa Price 8,351 (-5% rep) 7,907 -13% -3% Glyphosate: -6% cpa 3.267 2.849 Curren
Slide 11: Q1 2024: Growth Led by Launch Assets, Eylea and Radiology
Q1 2024: Growth Led by Launch Assets, Eylea and Radiology Pharmaceuticals Q1 2024 Volume Net Sales1 EBITDA €m, ∆% yoy €m, before special items +3% EBITDA Margin before special items +4% cpa (-1% rep) Price +1% 4,407 4,358 +8% 1.106 1,194 +0.4% +0.6% -0.4%, +3.4% incl. -5.0% Currency VBP/ -5% China 2
Slide 12: Q1 2024: Expected Slow Start into the Year Following Strong Q4 and a Mild Winter Season
Q1 2024: Expected Slow Start into the Year Following Strong Q4 and a Mild Winter Season Consumer Health Q1 2024 Volume Net Sales EBITDA -12% €m, ∆% yoy €m, before special items -2% cpa EBITDA Margin before special items (-9% rep) Price 1.573 +10% 1.432 -13% 379 331 Currency -7% 24.1% 23.1% Portfolio
Slide 13: FY 2024 Outlook: Updated FX Estimates
FY 2024 Outlook: Updated FX Estimates in €bn 2023 2024 2024 as reported at constant FX1 estimated FX impact2 Net Sales 47.6 -1% to +3% -2% to -3%pts EBITDA 11.7 ~ -4%pts (before special items) -9% to -3% Core EPS (in €) 6.39 5.10 to 5.50 ~ -0.30 Free Cash Flow 1.3 2.0 to 3.0 ~ -0.3 Net Financial Deb
Slide 14: Q&A Session
///////////// Health for all, Hunger for none Q&A Session May 14, 2024
Slide 15: Appendix: Outlook
///////////// Health for all, Hunger for none APPENDIX Outlook 2024
Slide 16: Outlook 2024: Modelling Considerations Unchanged
Outlook 2024: Modelling Considerations Unchanged GROUP KEY DRIVER (€bn) 2024 at constant FX1 Special items (EBITDA) primarily driven by ongoing restructuring programs and DSO related severance payouts Special Items (EBITDA) -2.0 to -1.0 Core Financial Result with increased interest payments Core Dep
Slide 17: Outlook 2024: Divisions
Outlook 2024: Divisions 2023 2024 2024 as reported at constant FX1 estimated FX impact2 Net Sales €23.3bn -1% to +3%3 ~-1%pts EBITDA Margin 21.7% 20% to 22% not material Crop Science (before special items) Net Sales €18.1bn -4% to 0% ~-3%pts Pharmaceuticals EBITDA Margin 28.7% 26% to 29% ~-2%pts (be
Slide 18: Appendix: Q1
///////////// Health for all, Hunger for none APPENDIX Q1 2024
Slide 19: Q1 2024: Core Net Income and Free Cash Flow
Q1 2024: Core Net Income and Free Cash Flow [€ bn] Q1 2023 Q1 2024 [€ bn] Q1 2023 Q1 2024 Net Sales 14.4 13.8 Reported EBITDA 4.3 4.2 EBITDA before special items 4.5 4.4 Tax payments -0.5 -0.4 Core depreciation -0.4 -0.4 Delta pensions -0.1 -0.1 Core EBIT 4.1 4.0 Gains/Losses Divestments 0.0 -0.1 Co
Slide 20: Pricing from Innovation in the Core Business Partially Compensates for Glyphosate Normalization
Pricing from Innovation in the Core Business Partially Compensates for Glyphosate Normalization Crop Science Q1 2024 Key Drivers Corn S&T: strong pricing globally, partially offset by Sales by Strategic Business Entity area reductions, mostly in NA €m ∆% cpa yoy Herbicides excl. GLY: declines across
Slide 21: Nubeqa and Kerendia With Continued Strong Launch Dynamics, Ongoing Solid Growth of Eylea and Radiology
Nubeqa and Kerendia With Continued Strong Launch Dynamics, Ongoing Solid Growth of Eylea and Radiology Pharmaceuticals Q1 2024 Key Drivers Sales by Key Products Xarelto: slightly up versus soft prior year; ongoing €m ∆% cpa yoy generic pressure; lower US royalties 926 Eylea: growing in all regions,
Slide 22: Reduced Retailer Demand Post Strong Q4, as Well as Soft Cough & Cold Season
Reduced Retailer Demand Post Strong Q4, as Well as Soft Cough & Cold Season Cannot be Fully Compensated by Improving Supply Consumer Health Q1 2024 Key Drivers Sales by Category €m ∆% cpa yoy Dermatology: Growth mainly driven by contributions from our Bepanthen brand family and strong demand for our
Slide 23: Expect Lower Glyphosate Pricing to be Partially Offset by Volume Recovery in 2024
Expect Lower Glyphosate Pricing to be Partially Offset by Volume Recovery in 2024 Glyphosate Branded Glyphosate-Based Herbicide Sales Rapidly Normalized as Generic Reference Price Reverts to Historical Median $14 6 $12 5 $10 4 $8 bn€ $/KG 3 $6 $3.80/Kg 2 $4 $2 1 $- 0 2019 2020 2021 2022 2023 2024F C
Slide 24: Q1 2024: Core EPS to EPS Bridge
Q1 2024: Core EPS to EPS Bridge in € 2.82 -8.55 -0.73 2.04 -0.21 -0.05 +0.21 Core EPS Depreciation & Amortization Special Items Special Items Tax Effect on EPS (total) Q1 2024 (on IP and PPE) (EBITDA) Financial Results/Taxes Adjustments Q1 2024 24 /// Bayer Q1 2024 Investor Call /// May 14, 2024
Slide 25: Q1 2024: Key Financial Measures by Division
Q1 2024: Key Financial Measures by Division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Sales 8,351 7,907 4,407 4,358 1,573 1,432 58 68 14,389 13,765 Sales by region: Europe / Middle East
Slide 26: Appendix: Innovation
///////////// Health for all, Hunger for none APPENDIX Innovation
Slide 27: Crop Science: Seed & Traits and Digital R&D Pipeline
Crop Science: Seed & Traits and Digital R&D Pipeline ~€21bn (Annual Update March 2024) PSP Phase I Phase II Phase III Phase IV PSP CORN SEED & TRAIT Corn Disease Shield - NA Corn LEP5 PRECEON Smart Corn - Breeding Corn HT5 2nd Generation Seed Density PRECEON Smart Corn – Biotech Trait2 Digital Tool
Slide 28: Crop Science: Crop Protection R&D Pipeline
Crop Science: Crop Protection R&D Pipeline (Annual Update March 2024) ~€11bn PSP Phase I Phase II Phase III Phase IV Life Cycle Management1 PSP New AI Development Non-Selective New Herbicide New Herbicide New Herbicide Glyphosate LCM Selective HERBICIDES New Herbicide ~€5bn Merlin Flexx / Adengo LCM
Slide 29: Pharmaceuticals: R&D Developments (since last update on February 20, 2024)
Pharmaceuticals: R&D Developments (since last update on February 20, 2024) Phase I Phase II Phase III Commercial Initiation of 225Ac-PSMA- Discontinuation of Initiation of Finerenone Trillium Zaberdosertib Chronic Kidney Disease in (Atopic Dermatitis) Type 1 Diabetes (FINE-ONE) Oncology Cardiovascul
Slide 30: Pharmaceuticals – Pipeline Overview (as of April 30, 2024)
Pharmaceuticals – Pipeline Overview1 (as of April 30, 2024) Phase I Phase II Phase III HER2/mEGFR Inhibitor (BAY 2927088) Congestive Heart Failure rAAV Gene Therapy (AB-1002) Darolutamide (AR Inhibitor) Congestive Heart Failure (GenePHIT) Prostate Cancer (mHSPC) (ARANOTE) DGKzeta Inhibitor (BAY 2965
Slide 31: Major R&D Milestones Expected in 2024
Major R&D Milestones Expected in 2024 Phase I Phase II Phase III Submission / Approval Sema3A mAB: sGC Activator oral CKD: Darolutamide/ADT mHSPC: Elinzanetant VMS: Primary compl. Phase I Start Phase IIb Primary compl. phase III (ARANOTE) First submissions BRT-OpCT01 Primary Bemdaneprocel PD: HER2/m
Slide 32: Nubeqa Continues to Show Strong Uptake With Gains in All Regions
Nubeqa Continues to Show Strong Uptake With Gains in All Regions Global sales development (€m, cpa growth rates) US launch performance (monthly NBRx)1 +64% 1200 258 283 1000 232 800 201 178 600 400 Aug-22: 200 mHSPC approval 0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 US Ex-US Nubeqa continues to be t
Slide 33: Kerendia Demonstrates Continued Launch Uptake
Kerendia Demonstrates Continued Launch Uptake Global sales development (€m, cpa growth rates) US launch performance (monthly NBRx)1 10000 50.000 +66% 8000 40.000 85 85 6000 30.000 67 66 52 4000 20.000 2000 10.000 0 0 Jul-22 Jul-23 Mrz 24 Jun-22 Jun-23 Jan-24 Aug-21 Sep-21 Nov-21 Dec-21 Jan-22 Oct-21
Slide 34: Thank You
///////////// Health for all, Hunger for none Thank You