Bayer Ag · XETR:BAYN
Bayer — Debt Investor Presentation (August 2024)
23 slides from Bayer's debt investor presentation, Aug 6, 2024
Slide 1: Debt Investor Information
///////////// Health for all, Hunger for none Debt Investor Information Status: FY 2023/HY1 2024 A s o f 6 th A u g u s t 2 0 2 4
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: Bayer: A Global Leader in Health & Nutrition
Bayer: A Global Leader in Health & Nutrition Crop Science • #1 in Seed & Traits with 2023 Leading Crop Protection Portfolio Well Positioned • >200 bn€ exp. Global Ag Input Market in Growing Markets & Related Adjacencies by 2030 13% to address Pharmaceuticals 47.6bn€ 49% • Strong market positions in
Slide 4: With Our Business We can Make Unique and Relevant Contributions
With Our Business We can Make Unique and Relevant Contributions OUR MISSION and VISIONS OUR SYSTEMIC RELEVANCE //////////// 55 Climate Action Our impact on the 55GT Produce 50% More. of CO2 in our value chain Restore Nature. Scale Regenerative Ag. 4 Treat the Untreatable. 1 Cure Disease. Offer Hope.
Slide 5: Sustainability is and will be an Important Value Driver for Bayer
Sustainability is and will be an Important Value Driver for Bayer Sustainability-related value creation along access, adaptation, and mitigation CROP CONSUMER PHARMA SCIENCE HEALTH Regenerative Ag & Access and Social Access, Climate Smallholder Access Business Model & Health Innovation & focus on Ac
Slide 6: We have Ambitious Measurable Targets for Sustainable Development
We have Ambitious Measurable Targets for Sustainable Development Our 2030 Targets positively contribute to today’s pressing challenges Detailed descriptions can be found here: https://www.bayer.com/en/sustainability/targets Help more PEOPLE thrive Decrease ECOLOGICAL footprint Support 100m smallhold
Slide 7: FY 2023: Achieved Revised Outlook
FY 2023: Achieved Revised Outlook FY 2023 Outlook FY 2023 Actuals incl. FX impact as reported in €bn Net Sales 46.8 - 47.8 47.6 EBITDA 11.1 - 11.6 11.7 (before special items) Core EPS (in €) 6.20 - 6.40 6.39 Free Cash Flow1 ~ 0 1.3 Net Fin. Debt ~ 36 34.5 1Litigation related net payouts (settleme
Slide 8: Bayer Key Financials
Bayer Key Financials 2023 EBITDA before Special Items in €bn Capital Expenditures 2023 in €bn Research & Development Expenses 2023 in €bn 3,3 5,0 5,2 1,6 1,2 1,9 1,4 0,2 0,2 Crop Science Pharma Consumer Health Crop Science Pharma Consumer Health Crop Science Pharma Consumer Health 6 Free Cash Flow i
Slide 9: FY 2024 Group Outlook Confirmed
FY 2024 Group Outlook Confirmed 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 Debt 34.5
Slide 10: We Accelerate Cash Generation and Manage Adverse Impacts
We Accelerate Cash Generation and Manage Adverse Impacts Driving Operational Performance and Strengthen Cash Flow Growth Drive profitable growth beyond Xarelto LoE Sales Focused spend and Growth Margin realization of savings Balance Sheet Working Capital Optimization Efficiency Focused CAPEX spend D
Slide 11: Our New Operating Model Yields Several Advantages
Our New Operating Model Yields Several Advantages Sustainable Cost GROWTH through GROWTH through EFFICIENCIES Customer Centricity Innovation Speed // Elimination of roles, // Self-managed customer- // Increased speed to market processes and activities and product teams with due to shorter innovation
Slide 12: Through 2026: Enhance Performance and Regain Flexibility
Through 2026: Enhance Performance and Regain Flexibility CROP PHARMA CONSUMER GROUP SCIENCE HEALTH Implement dynamic Outgrow market in Support topline resilience Grow above market shared ownership to core business during LoE’s of major products Maintain profitability at improve performance Improve p
Slide 13: We Prioritize our Capital Allocation to Achieve a Step Down in Debt
We Prioritize our Capital Allocation to Achieve a Step Down in Debt Organic Investments Cash Generation Cash Usage (before Free Cash Flow) Minimum Dividend Ongoing and New Launches FREE CASH FLOW DEBT REDUCTION Focused R&D Investments Improve Towards Single A Category Rating Focused CAPEX Spend (inc
Slide 14: Bayer Pursues a Conservative Financial Policy…
Bayer Pursues a Conservative Financial Policy… Financing Instruments // Syndicated credit facilities Key objectives Ensure liquidity and // Global Commercial Paper program creditworthiness Long term ambition of investment grade rating towards A category // Senior bonds in different currencies Sustai
Slide 15: … and is Ambitious to Improve Its current Investment Grade Ratings
… and is Ambitious to Improve Its current Investment Grade Ratings towards the "A" Category Development of Ratings and Leverage1 Monsanto Schering Merck OTC 3,4x 4,4x 4,2x 3,5x Proven track record of 3,2x 3,1x disciplined deleveraging 2,9x 3,4x 2,6x 2,5x 2,5x 2,5x 2,4x 2,1x 1,9x 1,9x 1,8x 1,6x 1,0x
Slide 16: Bayer’s Maturity Profile is Well Balanced
Bayer’s Maturity Profile is Well Balanced Bond Maturity Profile (€bn) Currency Exposure incl. Derivatives as of June 30, 20241 as of June 30, 20242 8 USD RegS/144a EUR Senior Bonds CNY Panda Bond Hybrid (First Call Dates) BRL Other 7 JPY 6 5 €36.8bn 4 Net Financial Debt 3 2 EUR 1 USD 0 2024 2025 202
Slide 17: Overview of Bayer‘s Funding Structure
Overview of Bayer‘s Funding Structure Net Financial Debt1 Nominal Volume of Major Instruments (bn) Net Financial Debt1 as of June 30, 2024 Dec. 31, 2022 Dec. 31, 2023 June 30, 2024 EUR million EUR million EUR million EUR 16.3 Senior EUR Bonds Bonds and notes / promissory notes 36,602 40,852 41,794 U
Slide 18: Short- and Long-Term Funding Programs
Short- and Long-Term Funding Programs Short-Term Funding: Commercial Paper Program Long-Term Funding: Debt Issuance Program Commercial Paper (CP) is a short-term unsecured debt instrument. CP are Under the Debt Issuance Program (DIP) Bayer may from time-to-time issue normally issued at a discount an
Slide 19: Back-up Revolving Credit Facility
Back-up Revolving Credit Facility Syndicated Loan Facility The multicurrency Syndicated Loan Facility can be used for general corporate purposes and is primarily a back-up line. Thus, it is not intended to be drawn in the course of ordinary business. The participating banks form Bayer’s global banki
Slide 20: Main Issuing Entities at Bayer Group
Main Issuing Entities at Bayer Group Bayer AG Germany CNY Hybrid EUR Bonds Bonds Bonds Bayer US Finance LLC USD Bayer Capital Corp. B.V. USA Bonds Netherlands Bayer US Finance II LLC EUR USD Bonds USA Bonds Bayer Corp. USD USA Bonds Monsanto Company USD USA Bonds Instruments issued or guaranteed by
Slide 21: Hybrid Bonds at Bayer
Hybrid Bonds at Bayer 2014 2019 2022 2023 2024 2025 2027 2028 2030 2031 2074-2083 NC5.5 Issuance Nov 19 1st Call Dates Feb 25 & Aug 27 Maturity Nov 79 NC8 NC5.5 Issuance March 22 1st ORD2 June 27 & June 30 Maturity March 82 NC8.5 NC5.25 Issuance Sept 23 1st ORD2 Sept 28 & Sept 31 Maturity Sept 83 NC
Slide 22: Upcoming Events 2024/2025
Upcoming Events 2024/2025 Date Event/ Publication Tuesday, August 6, 2024 Q2 2024 Results / Half-Year Report Tuesday, November 12, 2024 Q3 2024 Results / Quarterly Statement Tuesday, November 12, 2024 Q3 2024 Results / Quarterly Statement Wednesday, March 5, 2025 FY/Q4 2024 Results / Annual Report F
Slide 23: Contacts at Bayer
Contacts at Bayer Dr. Sven Vorstius Head of Corporate Funding Building Q 26 E-Mail: Sven.Vorstius@bayer.com D-51368 Leverkusen Tobias Feld Manager Investor Relations Building W 11 E-Mail: Tobias.Feld@bayer.com D-51368 Leverkusen 23 /// Bayer Debt Investor Relations /// Status: FY 2023/HY1 2024