Bayer Ag · XETR:BAYN
Bayer — Investor Day (May 2025)
64 slides from Bayer's investor day presentation, May 13, 2025
Slide 1: 2025 Crop Science Investor Update
2025 Crop Science Investor Update May 13 th 2025
Slide 2: Welcome and Opening Remarks
Welcome and Opening Remarks 2 /// Bayer Crop Science 2025
Slide 3: Today's Agenda
Today's Agenda Welcome and Opening Remarks Erica Mulligan Director of Investor Relations Bayer Harvesting Innovation: The Future of Agricultural Input Markets Rodrigo Santos President of the Crop Science Division Our Business Model in Today’s Markets Rodrigo Santos President of the Crop Science Divi
Slide 4: 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 5: Pre-commercialization statements
Pre- commercialization statements No dicamba may be used in-crop with Vyconic Soybeans, unless and until approved or specifically permitted, and no dicamba formulations are currently registered for such use. Please follow www.roundupreadyxtend.com/pages/xtendimax- updates.aspx for status updates. Di
Slide 6: Harvesting Innovation: The Future of Agricultural Input Markets
Harvesting Innovation: The Future of Agricultural Input Markets 6 /// Bayer Crop Science 2025
Slide 7: We are active in attractive segments of the Ag input market
We are active in attractive segments of the Ag input market Agricultural input market segments (indicative market sizes) Attractive features of S&T and CP segments Specialty nutrients High order of merit for the farmer NPK fertilizer1 Seeds & Traits High barriers to entry (S&T) Less cyclical than ot
Slide 8: S&T and CP markets are on a solid long-term growth trajectory
Overall, S&T and CP markets are on a solid long-term growth trajectory Market outlook Global S&T and CP market in €bn CAGR ('24-'29) Seeds & Traits 2.5 - 3% Crop Protection 1.5 - 2% Market expected to move into upcycle, resulting in ~2% New value CAGR from '24 to '29 CAGR pools +2% In S&T, growth ex
Slide 9: Beneath long-term growth trajectory, our market is inherently cyclical
Beneath long-term growth trajectory, our market is inherently cyclical Historical development of S&T and CP market in €bn Factors driving cyclicality Total percentage change y-o-y Seeds & Traits Crop Protection Grain prices & currency effects +2% Price 120 113 111 103 108 Governmental subsidies & tr
Slide 10: Agriculture is a critical industry and must produce more
Growing population Pressure on ecosystems harvest losses people on the +2.2bn planet by 20501 -17% from climate change4 Agriculture is a critical industry +50% more food and feed required2 -20% loss in arable land per capita by 20505 and must produce more people live in of all soils to be >3bn areas
Slide 11: Future of agriculture: only company with portfolio and innovation to scale regenerative Ag
Future of agriculture: We are the only company with the portfolio and innovation to scale regenerative Ag and unlock new farmer value Regen Ag market shift: From individual products To integrated systems across seasons that deliver farmer profits & resilience We benefit from shift as only provider i
Slide 12: Our Business Model in Today's Markets
Our Business Model in Today's Markets 12 /// Bayer Crop Science 2025
Slide 13: Our leading industry position is underpinned by four competitive differentiators
Our leading industry position is underpinned by four competitive differentiators Our business model Our key differentiators Bayer CS core platforms1 #1 player in the market2, with leading S&T New 1 Core CP value positions across core platforms Corn Soy Other pools Unmatched innovation engine, drivin
Slide 14: Core platforms: We hold leading positions across platforms
Core platforms | We hold leading positions across platforms 1 Leading platform positions | … S&T Core CP Corn Soy Other Market leading positions across all key crops, backed by a strong global Strong portfolio combining germplasm base and a rich, cross-crop trait pipeline that meets high efficacy &
Slide 15: Innovation engine: leading positions driven by innovation excellence
Innovation engine | Our leading positions in S&T and CP, as well 2 as in digital, are driven by our innovation excellence S&T Core CP Digital Industry-leading genetic base #1 database of grower and field >1,000 new CP formulations & resulting in ~500 new trial seed performance label extensions in pa
Slide 16: Our pipeline unlocks the next wave of innovation, creating >€32bn in PSP
Innovation engine | Our pipeline unlocks the next wave of 2 innovation in agriculture, creating >€32bn in PSP Our innovation pipeline1 Net sales until 2035+ Indicative Recent launches 2025 / '26 2027 2028 2029+ Net sales from innovations4 Net sales from existing product portfolio New Icafolin Biotec
Slide 17: GTM model: unmatched global market reach and digital solutions
GTM model | We achieve unmatched global market reach, 3 further differentiated by our leading capabilities in digital solutions Unparalleled market reach Leading digital solutions Only player in market with global reach Our farmer-centric One of only two players with complete across all our platform
Slide 18: New value pools: advantaged position to expand beyond the core
New value pools | Based on our core capabilities, we are in an 4 advantaged position to successfully expand into new value pools New value pools Bayer CS advantage Portfolio and pipeline New value pools Biofuel Provider in novel energy seeds R&D synergies Deploy breeding & biotech capabilities, #1 i
Slide 19: Business model intact, but cEBITDA margin under pressure from CP
Our business model is intact long-term, still our cEBITDA margin has come under pressure recently, driven by our CP business CS cEBITDA margin declined '21-'24… Driver 1 -3.8pp Prices for AIs from China significantly declined Chinese AI Spot Prices 23.2% 27.3% 21.7% 19.4% <-20% 2021 2022 2023 2024 2
Slide 20: 5-year framework to strengthen financial profile and unlock growth
We put a 5-year framework in place to strengthen our financial profile, enhance resilience, and unlock our full growth potential 2030+ Expand beyond the Core Biological Biofuel Accelerating by 2027 and beyond solutions seeds … >€3.5bn Incremental net sales incl. innovation Capitalize pipeline value
Slide 21: Strengthen the Foundation: Our Margin and Cash Program
Strengthen the Foundation: Our Margin and Cash Program 21 /// Bayer Crop Science 2025
Slide 22: Immediate priority: three margin and one cash initiative
Our immediate priority is to improve our financial performance through three margin and one cash initiative 2030+ Expand beyond the Core Biological Biofuel … solutions seeds Accelerating by 2027 and beyond Capitalize pipeline value in Core Corn Soy Other Core Sales S&T S&T S&T CP In execution Dynami
Slide 23: Margin and cash program improves cEBITDA by >€1bn and frees >€1.5bn cash
Our margin and cash program improves our cEBITDA by >€1bn and frees >€1.5bn cumulative cash until 2029 Initiative Financial impact (cEBITDA impact by '29) Portfolio and R&D >€150m1 Streamline our overall portfolio and focus R&D on strategic segment priorities R&D only Product supply (COGS) >€600m Im
Slide 24: Portfolio and R&D: streamline portfolio and focus R&D
Portfolio and R&D | We streamline our overall port- folio and focus R&D on strategic segment priorities What we change – Key actions What we achieve Portfolio: Product CP R&D: Targeted innovation & review & streamlining footprint optimization Initiatives >€150m Divest non-strategic products Focus R&
Slide 25: Product supply (COGS): optimize sourcing and production cost
Product supply (COGS) | We optimize our sour- cing & production cost position, especially in CP What we change – Key actions What we achieve CP sourcing & pro- Crop protection Seed production cess improvements production network optimization Initiatives Improve input prices Adjust capacity Lower pro
Slide 26: GTM & Global functions (SG&A) adjustments
GTM & Global functions (SG&A) | We adjust our go-to-market approach & global function setup What we change – Key actions What we achieve Go-to-market: Differentiated Global functions: value-based approach Setup adjustment Initiatives Adjust GTM by country archetype Align setup to new, leaner organiz
Slide 27: Cash flow: improve cash productivity across working capital
Cash flow | We further improve our cash productivity across working capital items What we change – Key actions What we achieve Customer cash Supplier cash Inventory Initiatives >€1.5bn Standardize terms Extend payment terms Drive E2E accountability Cumulative cash freed from Improve cash collection
Slide 28: Capitalize Pipeline Value in Core and Beyond: Our Growth Strategy
Capitalize Pipeline Value in Core and Beyond: Our Growth Strategy 28 /// Bayer Crop Science 2025
Slide 29: Clear growth strategy across our core platforms
We have a clear growth strategy across our core platforms Corn, Soy, and Core CP – accelerating by 2027 and beyond 2030+ Expand beyond the Core Biological Biofuel Accelerating by 2027 and beyond solutions seeds … >€3.5bn Incremental net sales incl. innovation Capitalize pipeline value in Core '24-'2
Slide 30: Our innovations will drive topline growth through 2029
Our innovations will drive topline growth through 2029 Corn Soy Other Crop Protection (Seeds & Traits) (Seeds & Traits) Seeds & Traits1 (Core) Strengthen #1 position Defend acreage share Continue above market Drive profitable growth via innovation, geo- and prepare innovation- growth in Canola, via
Slide 31: Proven track record and data-driven innovation capabilities
Our proven track record and data-driven innovation capabilities position us at the forefront of the next era in agriculture Mid 1990s–2020s 2020s–2030s Innovation wave: GMO & biological disruptions Enhancing biology with data science/AI Global germplasm pools Industry leading digital assets >450 new
Slide 32: Corn: strengthen #1 position via innovation, expansion, GTM
Corn | We strengthen our #1 position via innovation, geographic expansion, and GTM Platform development (Net sales 2020-34, CAGR cpa1) Corn Bayer CS Our corn seed & trait brands today Mid single Clear #1 position and acknowledged innovation leader with the digit growth strongest portfolio and pipeli
Slide 33: Holistic approach to grow corn platform until 2029
We take a holistic approach to grow our corn platform until '29 via innovations, geographic expansion, and go-to-market Drive innovation Scale launched Optimize Expand into attract- Corn pipeline innovations go-to-market tive geographies Expand #1 genetics Commercialize Increase face-to-face Leverag
Slide 34: Genetics: expand leading position through germplasm and breeding
Drive innovation pipeline Genetics | We expand our leading position through best-in-class germplasm and breeding capabilities Best-in-class germplasm and breeding capabilities today … #1 genetics in key markets Corn US market share >1,500 >7 bu/ac >100m Bayer CS corn hybrids avg. yield advantage acr
Slide 35: PRECEON Smart Corn System already revolutionizes corn growing
Scale launched innovations | Our PRECEONTM Smart Corn System already revolutionizes corn growing 2024 Ground Breakers® Program Corn Short statue Input ~390 Growers Program corn products optimization MN WI locations 33k Acres SD MI Improved yield Extended field IA NE potential, resilience, access and
Slide 36: Traits: next-gen blockbusters extend technology leadership
Drive innovation pipeline Traits | Our next-gen blockbusters are geared to extend our technology leadership 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Continuous development Launch early next decade Corn PRECEONTM LEP4 CRW4 LEP5 HT5 Advancement of Biotech Trait [Picture to be added] In c
Slide 37: Soy: leading platform, managing short-term challenges
Soy | We have the leading soy platform today and will aggressively manage short-term challenges while securing long-term growth Platform development Global #1 position today (Net sales 2020-34, CAGR cpa1) Soy #1 player in traits globally (~65% market share) #2 player in genetics globally Mid single
Slide 38: NA: Vyconic soybeans maximize synergetic value
NA | With VyconicTM soybeans we will maximize synergetic value from combination of best-in-class traits and high-yielding genetics 2025 2026 2027 2028 2029 2030 2030+ Short-term outlook Mid- to long-term trait innovations Soy VyconicTM (HT4)3 HT5 Industry-first trait package with tolerance to 5 Driv
Slide 39: LATAM: next-gen trait launches extend trait position
LATAM | With our next-gen trait launches we are set to extend our unrivaled trait position and capture genetic market share 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035+ Short-term outlook Mid- to long-term trait innovations Soy Soy IP1&2 Soy IP3 w/ HT4 Soy IP4 Velvetbean Offer superior in
Slide 40: Core CP: profitable growth by focusing portfolio, R&D, GTM
Core CP | We drive profitable growth by focusing our portfolio, R&D, and GTM to high-margin markets and new launches Platform development (Net sales 2020-34, CAGR cpa1) Bayer CS Our CP lighthouse brands – examples Core CP today Low single digit growth +4% Broadest AI discovery pipeline and portfolio
Slide 41: Core CP business model based on market archetypes
Core CP business model | We will drive our business based on newly defined market archetypes "Focus" market "Leverage" market "Harvest" market % Bayer CS sales contrib.1 ~70% ~25% ~5% Core CP Illustrative Sales & profit Shift of GTM resources and R&D efforts to "Focus" countries potential2 (€bn) ...
Slide 42: Improving R&D ROI with CropKey approach
Innovation | We are improving ROI from R&D by leveraging our unique CropKey approach in highest-value segments Faster, more precise discovery Core CP Towards new generation of differentiated AIs System biology and Artificial Intelligence- Global Differentiated enabled approach market potential farme
Slide 43: Secure topline growth through CP pipeline
Innovation | We will secure topline growth through our CP pipeline, addressing a broad range of key markets and farmer needs 2025 2026 2027 2028 2029 2030 2031 Post 2035 Launch early Blockbusters next decade Core CP (INS) Icafolin (HER) New fungicide Continued pipeline of blockbuster AIs PSP1 ~€500m
Slide 44: Beyond 2030 we continue to grow core and accelerate in new value pools
Beyond 2030 we will continue to grow our core business and accelerate in additional value pools in adjacent spaces 2030+ Expand beyond the Core Biological Biofuel … solutions seeds Accelerating by 2027 and beyond Capitalize pipeline value in Core Corn Soy Other Core Sales S&T S&T S&T CP In execution
Slide 45: Building pipeline and portfolio of biologicals through open innovation
We will continue to further build our pipeline and portfolio of cutting- edge biologicals through our open-innovation model Global demand for biologicals Our strategic guardrails Proven portfolio & pipeline (Market development forecast 2024- 35+ in €bn, CAGR) Open innovation to partner Biocontrol Bi
Slide 46: Market leader for next-gen biofuels
We are the market leader for next-gen biofuels and will fully reap the market growth anticipated for the 2030s and beyond Global biofuel demand (Market development forecast 2023-35+ in bn Gallons) Our positioning ~3x +214% #1 provider of novel energy intermediate crop seeds with a leading portfolio
Slide 47: Innovation pipeline and platform strategies deliver >€3.5bn sales growth by 2029
Our innovation pipeline and platform strategies will deliver >€3.5bn sales growth by 2029 2030+ Expand beyond the Core Biological Biofuel Accelerating by 2027 and beyond solutions seeds … >€3.5bn Incremental net sales incl. innovation Capitalize pipeline value in Core '24-'291 Corn Soy Other Core Sa
Slide 48: Financial Outlook: Our Parameters for Success
Financial Outlook: Our Parameters for Success 48 /// Bayer Crop Science 2025
Slide 49: Recap: above market growth and mid-20% cEBITDA by end of decade
Recap | We guide for above market growth and mid-20% cEBITDA by end of decade – enabled and secured by adapted steering Mid-term Ambition (end of decade) Net Sales: Above Market Growth • Expected to grow above market, fueled by innovation cEBITDA Margin (before special items, incl. Glyphosate): Mid-
Slide 50: Our five-year framework will get us to our mid-term ambition
Our five-year framework will get us to our mid-term ambition Expand beyond the Core Capitalize pipeline value in Core >€3.5bn Incremental net sales incl. innovation Corn Soy Other Core '24-'291 S&T S&T S&T CP Sales CAGR '24-'29 Mid single digit Low single digit Mid single digit Low single digit grow
Slide 51: Sales: innovation engine fuels >€3.5bn growth
Sales | Our innovation engine fuels >€3.5bn growth across Core CP and S&T Net sales 2024-29, in €bn1 Continued growth above market (~3% Bayer CS vs. ~2% market) >€3.5bn incremental net sales Core CP growing at 2-3% despite: Growth from blockbusters and gradual innovation • Planned divestments & prun
Slide 52: Margin: five-year framework brings mid-twenties cEBITDA margin by 2029
Margin | Our five-year framework brings us to mid-twenties cEBITDA margin by '29 cEBITDA 2024-29, in €bn1 19.4% cEBITDA margin Mid-20s >6 Growth effect mainly from high- Five-year framework margin blockbusters Existing initiatives Majority of uplift from controllables: 4.3 • Five-year framework impr
Slide 53: Cash: drive cash productivity and generate >€3bn cash flow by 2029
Cash | We will drive cash productivity and generate >€3bn cash flow by 2029 Free operating cash flow 2024-29, in €bn1 >3 FOCF reaches >€3bn by 2029 >€1.5bn cumulative cash released '24-'29 through cash program Cash program releases >€1.5bn until 2029 from working capital ~2 Additional FOCF improveme
Slide 54: Core business resilient – volatility driven by GLY
Core business resilient – volatility driven by GLY 5-year framework to further strengthen CP resilience Topline volatility driven by GLY GLY key driver for bottom line volatility Net sales 2021-24, indexed to 2021 cEBITDA margin 2021-24, illustrative management view + >90% - >40% GLY GLY S&T S&T Cor
Slide 55: Strong setup to execute our five-year framework
We have a strong setup to execute our five-year framework >€3.5bn Incremental net sales incl. innovation '24-'291 Steering along triangle (sales, margin & cash) E2E ownership in cross-functional teams Sales Aligned incentives >€1.0bn Dynamic Shared >€1.5bn Margin Ownership Cumulative cash Full trans
Slide 56: Bayer CS in 2029: strong position and continued momentum
Bayer CS in 2029: Strong position & continued momentum into 2030s >€25bn Net sales 2029 Strengthened Streamlined and Continuously execution Mid-20s adaptable org capabilities attractive block- cEBITDA margin (%) 2029 ensuring earnings buster pipeline consistently resilience across platforms driving
Slide 57: Q&A
Q&A 57 /// Bayer Crop Science 2025
Slide 58: Slide 58
Slide 59: Appendix
Not for presentation Appendix 59 /// Bayer Crop Science 2025
Slide 60: Key assumptions for our financials
Key assumptions | For our financials, we assume a positive market outlook and no significant geopolitical disruptions Inflation ~2.5% cost increases p.a. from people and non-people costs Macro- FX rates Constant FX at 2024 actuals (key FX1: USD 1.08, BRL 5.80, MXN 19.70, CAD 1.48) environment Geopol
Slide 61: Crop Science: Holistic R&D pipeline
Crop Science | Holistic R&D pipeline Annual Update - May 2025 Total PSP ~€32bn Phase II Phase III Phase IV Lifecycle management1 PSP 2 Corn LEP5 Corn HT5 Preceon Smart Corn – Biotech Trait3 S&T - Corn Corn LEP4 ~€11bn CRW4 Corn Annual Germplasm Upgrades and New Hybrid Launches – Leveraging precision
Slide 62: Abbreviations (1/2)
Abbreviations (1/2) Ag Agriculture E2E End-to-end AI Active ingredient EBITDA Earnings before interest, tax, depreciation, and amortization Bayer CS Bayer Crop Science EU European Union bn billion FOCF Free operating cash flow bps Basis points FUN Fungicide Bu/ac Bushels per acre FX Foreign exchange
Slide 63: Abbreviations (2/2)
Abbreviations (2/2) IP Insect protection SAF Sustainable aviation fuel LATAM Latin America SCF Supply chain financing LEP Lepidoptera protection SG&A Sales, General & Administrative LoE Loss of exclusivity US United States m million y-o-y Year-over-year NPK Nitrogen, phosphorus, and potassium NVPs N
Slide 64: Legal claims and commercialization statements
Legal claims and commercialization statements No dicamba may be used in-crop with Vyconic Soybeans, unless and until approved or specifically permitted, and no dicamba formulations are currently registered for such use. Please follow www.roundupreadyxtend.com/pages/xtendimax-updates.aspx for status