Bayer Ag · XETR:BAYN

Bayer — Q3 2022 Earnings Presentation

35 slides from Bayer's earnings presentation, Nov 8, 2022

  1. Slide 1: Investor Conference Call Q3 2022 Results

    Investor Conference Call /////////// Q3 2022 Results November 8th, 2022 Werner Baumann, CEO Wolfgang Nickl, CFO

  2. 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

  3. Slide 3: Q3 2022 Results: Business Update

    Q3 2022 Results Business Update /////////// Werner Baumann, CEO

  4. Slide 4: On Track for Full Year Guidance

    On Track for Full Year Guidance 1 Continued Growth Momentum 2 Robust Performance across Divisions 3 Important Innovation Milestones 4 Bayer Q3 2022 Investor Conference Call /// November 8th, 2022

  5. Slide 5: Q3 2022 Results: Group Performance & Outlook

    Q3 2022 Results Group Performance & Outlook /////////// Wolfgang Nickl, CFO

  6. Slide 6: Q3 2022: Continued Growth in Sales and Earnings

    Q3 2022: Continued Growth in Sales and Earnings Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy In million €, before special items In €, Cont. Operations In million € +15% (+6% cpa) 11.281 9.781 +17% 2.451 -11% 2.089 1.954 +8% 1.738 1,05 1,13 21.4% 21.7% Q3'21 Q3'22 Q3'21 Q3'22 Q3'21 Q3'22

  7. Slide 7: Crop Science: Sustained Growth Momentum

    Crop Science: Sustained Growth Momentum Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Herbicides (+45%) pricing main growth +22% driver due to continued favorable market Volume dynamics (+8% cpa) -11% 4.692 • Strong start to LATAM (

  8. Slide 8: Pharmaceuticals: Increasing Contribution from New Products

    Pharmaceuticals: Increasing Contribution from New Products Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • EyleaTM (+4%) growing across regions, Volume particularly Europe and China +3% • XareltoTM (-8%) still impacted by VBP in +9% (

  9. Slide 9: Consumer Health: Continuous Growth Across All Regions

    Consumer Health: Continuous Growth Across All Regions Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Allergy & Cold (+17%) driven by high number of cold incidences and U.S. Volume AsteproTM launch -4% +15% • Dermatology (+14%) growth

  10. Slide 10: 9M 2022: On Track for Full Year Guidance

    9M 2022: On Track for Full Year Guidance Significant Inflation – Offset by Pricing and Efficiencies Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy In million €, before special items In €, Cont. Operations In million € +18% (+10% cpa) 38.739 1,691 32.963 +26% +26% 6,59 11.051 5,25 8.784 26

  11. Slide 11: FY 2022: Group P&L Outlook Confirmed

    ES divestment effects included; at constant currencies (based on 2021 average Actual rates) FY 2022: Group P&L Outlook Confirmed At constant currencies Estimated currency impact1 Net Sales €47bn – ~ + €3.5bn €48bn EBITDA margin 26 - 27% ~ - 0.7%pts (before special items) Core EPS ~ €7.30 ~ + €0.40 •

  12. Slide 12: Investor Conference Call

    Investor Conference Call /////////// Q3 2022 Results November 8th, 2022 Werner Baumann, CEO Wolfgang Nickl, CFO

  13. Slide 13: FY 2022: Divisional Outlook

    ES divestment effects included; at constant currencies (based on 2021 average Actual rates) FY 2022: Divisional Outlook Sales Growth 2022 EBITDA-margin 2022 (cpa) (before special items) Crop Science ~ 13% ~ 27% Pharmaceuticals 3% - 4% ~ 32% Consumer Health 6% - 7% 22% - 23% 13 Bayer Q3 2022 Investor

  14. Slide 14: FY 2022: Other Group KPIs Outlook

    ES divestment effects included; at constant currencies (based on 2021 average Actual rates) FY 2022: Other Group KPIs Outlook At constant currencies Estimated currency impact1 Special items (EBITDA) ~ +€0.2bn • Updated for ES divestment gains Not material Depreciation and amortization (clean) ~ €4.0

  15. Slide 15: Q3 2022: Core EPS to EPS Bridge

    Q3 2022: Core EPS to EPS Bridge in € 15 Bayer Q3 2022 Investor Conference Call /// November 8th, 2022

  16. Slide 16: 9M 2022: Core EPS to EPS Bridge

    9M 2022: Core EPS to EPS Bridge in € 16 Bayer Q3 2022 Investor Conference Call /// November 8th, 2022

  17. Slide 17: Q3 2022: Key KPIs Bayer Group

    Q3 2022: Key KPIs Bayer Group 1 1 Less restructuring special items 2 2 Guidance at ~23% for FY 2022 Inflation in inventories and phasing of rebate 3 3 payments 17 Bayer Q3 2022 Investor Conference Call /// November 8th, 2022

  18. Slide 18: Q3 2022: Key KPIs by Division

    Q3 2022: Key KPIs by Division 18 Bayer Q3 2022 Investor Conference Call /// November 8th, 2022

  19. Slide 19: 9M 2022: Crop Science

    9M 2022: Crop Science Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Herbicides (+53%) with stronger pricing due to continued tight supply and strong demand for Volume +26% glyphosate-based herbicides -1% (+17% cpa) • Corn S&T (+5%)

  20. Slide 20: 9M 2022: Pharmaceuticals

    9M 2022: Pharmaceuticals Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • EyleaTM (+10%) driven by growing volumes in all regions, particularly Europe Volume +3% +8% • XareltoTM (-7%) impacted by VBP driven (+3% cpa) lower price and vo

  21. Slide 21: 9M 2022: Consumer Health

    9M 2022: Consumer Health Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Allergy & Cold with exceptional growth (+24%) driven by higher number of cold Volume incidences and the launch of AsteproTM +3% +17% • Nutritionals (+1%) normali

  22. Slide 22: 9M 2022: Key KPIs Bayer Group

    9M 2022: Key KPIs Bayer Group 1 1 Glyphosate Litigation Provision in Q2 2021 2 2 Guidance at ~23% for FY 2022 3 Glyphosate Litigation Provision in Q2 2021 offset in 3 Other WoC for cashflow calculation 22 Bayer Q3 2022 Investor Conference Call /// November 8th, 2022

  23. Slide 23: 9M 2022: Key KPIs by Division

    9M 2022: Key KPIs by Division 23 Bayer Q3 2022 Investor Conference Call /// November 8th, 2022

  24. Slide 24: Bayer AG Company Info

    Bayer AG Company Info 24 Bayer Q3 2022 Investor Conference Call /// November 8th, 2022

  25. Slide 25: Global Megatrends in Health & Nutrition

    Group Overview Global Megatrends in Health & Nutrition Attractive Macro Drivers of Our Strategy and Underpin the Need for Innovation Pharmaceuticals Consumer Health Crop Science Aging Population Growing Population Pressure on Ecosystems Megatrends People 60+ +2.2bn +50% -20% more than people1 throug

  26. Slide 26: Leadership and Innovation Set the Course for Our Future Growth

    Group Overview Leadership and Innovation Set the Course for Our Future Growth Key Growth Drivers Long-term megatrend tailwinds are propelling growing demand in the Life Sciences Number one position in Ag inputs and leading positions in key Pharma and Consumer categories World-class innovation: techn

  27. Slide 27: Investment Thesis: Key Takeaways

    Key Takeaways Group Overview Investment Thesis Key Takeaways 1 We are a global leader in Health & Nutrition that addresses societal megatrends 2 We are well-positioned to shape disruption in the bio-revolution 3 We expect to translate innovation into profitable mid-term growth 4 We expect to improve

  28. Slide 28: Important Improvements in ESG Ratings Achieved

    Important Improvements in ESG Ratings Achieved Removal of red flags at MSCI and ISS ESG Norm-Based Research in 2021/2022 Agency Score (type) Score 2022 Comments ESG Score A Improvement of Rating from BB to A Controversy level ⚑ (GMO) ⚑ (GMO) removed Risk Score 29.9 (medium) Controversy level and rat

  29. Slide 29: Innovation

    Innovation 29 Bayer Q3 2022 Investor Conference Call /// November 8th, 2022

  30. Slide 30: Pharmaceuticals: R&D Developments (since last update on August 4, 2022)

    Pharmaceuticals: R&D Developments (since last update on August 4, 2022) Phase I Phase II Phase III Commercial Initiation of CCR8 dep Completion of PACIFIC study Announcement of OCEANIC Nubeqa (darolutamide): antibody (immuno oncology) program with FXIa inhibitor study program with FXIa US label exte

  31. Slide 31: Pharmaceuticals: Overview Development Portfolio

    Pharmaceuticals: Overview Development Portfolio (as of November 8, 2022) Phase I (17) Phase II (10) Phase III (9) Elimusertib (ATR Inhibitor) (BAY 1895344) Regorafenib (combi Nivolumab) (BAY 734506) Darolutamide (AR Inhibitor) (BAY 1841788) /// Solid tumors (recurrent or metastatic) /// Prostate Can

  32. Slide 32: Crop Science: R&D Pipeline (Seed & Traits)

    Crop Science: R&D Pipeline (as of February 2022) Key Corn Seed & Traits, Soybean Seed & Traits and Other Projects with ~€19-€21bn Peak Sales Potential; ~50% Incremental Phase I Phase II Phase III Phase IV Life Cycle Mgmt.1 Digital Disease Mgmt. – NA 5th Generation Lepidoptera Protection Trait Short

  33. Slide 33: Crop Science: R&D Pipeline (Crop Protection)

    Crop Science: R&D Pipeline (as of February 2022) Key Crop Protection Projects with ~€9bn Peak Sales Potential; ~50% Incremental Phase I Phase II Phase III Phase IV Life Cycle Management1 New AI Development Non-Selective Glyphosate LCM New Herbicide New Herbicide (Post-Emergence Broad Acre) Selective

  34. Slide 34: Crop Science: Breadth and Depth of Five Core R&D Platforms

    Crop Science: Breadth and Depth of Five Core R&D Platforms Power Innovation CONVERGENCE OF LEADING R&D PLATFORMS TO UNLOCK NEXT LAYER OF VALUE CREATION IN AGRICULTURE SEEDS & TRAITS CROP PROTECTION DIGITAL FARMING Breeding Biotech Chemistry Biologicals Data Science 270,000 microbes in #1 Leading ger

  35. Slide 35: Consumer Health: Accelerating Growth with Innovation

    Consumer Health: Accelerating Growth with Innovation Selected Examples of Recent Launches or Approvals Astepro Rx-to-OTC Switch AleveX Topical Pain Relief Solutions Bepanthen extension to Dry Skin (launch in 2022) (launched 2021) (launched 2021)  First OTC Steroid-Free Antihistamine  Expansion int

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