Slide 1: Investor Conference Call Q3 2019 Results
Pictures to be updated Investor Conference Call /////////// Q3 2019 Results October 30, 2019 Werner Baumann, CEO Wolfgang Nickl, CFO
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: Q3 2019 Results: Business Update
Q3 2019 Results Business Update /////////// Werner Baumann, CEO
Slide 4: Bayer Remains on Track - Good Performance Across all Divisions
Bayer Remains on Track - Good Performance Across all Divisions (all figures: continuing operations) € 9,830m € 2,291 Sales increased to €9.8bn (+5% cpa) Sales EBITDA EBITDA before special items Before special items improved by 8% to €2.3bn Margin up 30 bps to 23.3% Core EPS plus 6% to €1.16
Slide 5: Progress in all Focus Areas
Progress in all Focus Areas 1 2 Target Delivery Crop Science Guidance for 2019 confirmed Good operational performance in and adjusted for discontinued challenging market environment operations and Fx Integration and synergy realization well on track 3 4 Pharmaceuticals Consumer Health Contin
Slide 6: Update Glyphosate Litigation
Update Glyphosate Litigation Served lawsuits from approx. 42,700 plaintiffs (as of October 11, 2019) Number of lawsuits not indicative of the merits of the litigation Rise in number of plaintiffs follows an exponential increase in advertising sponsored by plaintiffs’ lawyers* Appeals in the first th
Slide 7: Crop Science with Positive Growth Dynamics
Crop Science with Positive Growth Dynamics Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. 1 + % 3 + % +5% 3,948 3,733 Price Portfolio 4 + % - 2% +5% cpa (+6% ca pro forma) sales growth driven by North & Latin America Good growth across corn and soybean seed & traits as well as f
Slide 8: Pharmaceuticals Driven by Xarelto, Eylea and China
Pharmaceuticals Driven by Xarelto, Eylea and China Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 6% 2 + % +6% 4,504 Portfolio 4,163 Price + 0% 0 +/- % Xarelto up 9%, Eylea grew by 16% Continued strong performance in China FDA approvals of Nubeqa (darolutamide) and the Q3'18
Slide 9: Consumer Health with Solid Performance
Consumer Health with Solid Performance Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 2% + 1% +4% Price Portfolio 1,297 1,288 2 + % - 5% EMEA and Latin America with positive development North America and Asia/Pacific with declining sales Q3'18 Q3'19 Nutritionals, Allergy & C
Slide 10: Q3 2019 Results: Financials & Outlook
Q3 2019 Results Financials & Outlook /////////// Wolfgang Nickl, CFO
Slide 11: Q3 Results (Continuing Operations)
Q3 Results (Continuing Operations) Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy, (Fx & portfolio adj.) In million €, before special items In € In million € - Positive Fx effect of €215m - Positive Fx effect of €77m after - Core financial result went from - Increase driven by positive op
Slide 12: Q3 Results (Including Discontinued Operations)
Q3 Results (Including Discontinued Operations) Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy, (Fx & portfolio adj.) In million €, before special items In € In million € - Positive Fx effect of €224m - Positive Fx effect of €82m after hedging +5% cpa +9% 2,431 +13% 1,263 10,491 +7% 1.23 9
Slide 13: Bridge: Core EPS to EPS (Q3 2019)
Bridge: Core EPS to EPS (Q3 2019) in € 1.40 1.20 1.00 +0.04 +0.22 0.80 -0.65 +0.28 0.60 1.16 -0.01 1.01 1.05 0.40 0.20 0.00 Core EPS Amortization 1.16items Special Special items Tax effect EPS Continuing Discontinued EPS (total) Q3'19 intangbile assets, (EBITDA relevant) financial result/ on adjustm
Slide 14: Bayer Delivers on Announced Portfolio Measures
Bayer Delivers on Announced Portfolio Measures Animal Health Currenta Coppertone Dr Scholl’s Sales & EBITDA* Sales: €1,501m Sales: €1,344m Sales: 213m USD Sales: 234m USD 2018 EBITDA: €358m EBITDA: €220m Below average margin Below average margin US$7.6bn, thereof US$5.3bn in cash and ~€1.4bn (60% st
Slide 15: Net Financial Debt Reduced to €37.9bn in Q3
Net Financial Debt Reduced to €37.9bn in Q3 50,000 in € million 45,000 573 370 -584 -5,738 40,000 35,000 43,598 43,239 38,808 37,860 10,000 5,000 0 Gross Financial Debt Bonds Commercial Paper Other Financial Gross Financial Debt Cash / Net Financial Debt Net Financial Debt 30.06.2019 Liabilities 30.
Slide 16: Key Initiatives for Q4 2019
Key Initiatives for Q4 2019 Crop Science: Expect continued growth in Latin America and a strong start to the US season; continued momentum in achieving integration synergies Pharmaceuticals: Continuing strong growth of Xarelto, Eylea and China Consumer Health: Further driving turnaround and expect N
Slide 17: FY 2019 Guidance Confirmed, Aligned to Continuing Operations
FY 2019 Guidance Confirmed, Aligned to Continuing Operations and Including Expected Currency Impact Excluding currency impact 2019 outlook Of which 2019 outlook for 2019 outlook for Expected (excl. portfolio discontinued continuing operations continuing operations currency impact measures) operation
Slide 18: Focus Areas
Focus Areas 1 2 Target Delivery Crop Science Deliver on operational targets Integration of acquired business to shape the future of agriculture 3 4 Pharmaceuticals Consumer Health Deliver sales and margin expansion Drive performance improvement Further strengthening of pipeline and intensi
Slide 19: Investor Conference Call Q3 2019 Results
Pictures to be updated Investor Conference Call /////////// Q3 2019 Results October 30, 2019 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 20: Animal Health With Strong Performance in Q3 2019
Animal Health With Strong Performance in Q3 2019 Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 8% + 3% +10% 343 304 Price Portfolio Advantage product family with strong growth + 2% ± 0% (+19% cpa), particularly in the US Seresto with positive performance (+22% cpa) in all reg
Slide 21: 9M 2019 Results (Continuing Operations)
9M 2019 Results (Continuing Operations) Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy, (Fx & portfolio adj.) In million €, before special items In € In million € - Positive Fx effect of €413m - Negative Fx effect of €-92m - # shares increased from 927m to 981m 3,289 9,020 -23% +24% 32,79
Slide 22: 9M 2019 Results (Including Discontinued Operations)
9M 2019 Results (Including Discontinued Operations) Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy, (Fx & portfolio adj.) In million €, before special items In €, Cont. Operations In million € - Positive Fx effect of €445m - Negative Fx effect of -€87m 34.991 9,547 3,289 +23% +28% -23% (+
Slide 23: 9M 2019 - Segment Overview
9M 2019 - Segment Overview Discontinued Continued Operations Operation Crop Science Pharma Consumer Health Animal Health In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. +3% +5% 13,
Slide 24: Bridge: Core EPS to EPS (9M 2019)
Bridge: Core EPS to EPS (9M 2019) in € 6 5 4 -2.45 3 5.11 0.23 2 -1.50 1.05 0.28 2.50 2.73 1 0 Core EPS Amortization / Write Special Items Special Items Tax effect EPS Continuing Discontinued EPS 9M'19 down of IP and PPE (EBITDA relevant) financial results / on adjustments Operations Operations (tot
Slide 25: From EBITDA Before Special Items to Core EPS (Q3 2019)
From EBITDA Before Special Items to Core EPS (Continuing Operations, Q3 2019) P&L Q3 2018 Q3 2019 € million € million EBITDA before special items 2,132 2,291 Special items 3,135 -4 Reported EBITDA 5,267 2,287 Depreciation & Amortization -944 -1,072 Reported EBIT 4,323 1,215 Amortization mainly resul
Slide 26: From EBITDA Before Special Items to Core EPS (9M 2019)
From EBITDA Before Special Items to Core EPS (Continuing Operations, 9M 2019) P&L 9M 2018 9M 2019 € million € million EBITDA before special items 7,005 9,020 Mainly related to acquisition and integration costs Special items 2,743 -1,469 (€641m) and restructuring costs (€856m), partially Reported EBI
Slide 27: Free Cash Flow Generation
Free Cash Flow Generation Q3 2018 Q3 2019 9M 2018 9M 2019 € million € million € million € million Net cash provided by operating activities 2,051 2,282 4,949 4,961 Cash outflows for PPE and intangible -659 -729 -1,467 -1,582 assets Interest and dividends received 55 14 200 96 Interest paid/received
Slide 28: Divisional Guidance 2019
Divisional Guidance 2019 Sales 2018 EBITDA-margin 2018 Sales Growth 2019 EBITDA-margin (before special items) (cpa2) 2019 (before special items) (excluding currency impact) Crop €14.3bn1 18.6% ~4% ~25% Science Pharma €16.7bn 33.4% ~4% ~34% Consumer €5.5bn 20.1% ~1% ~21% Health 1 Monsanto included si
Slide 29: 2019 Guidance for other Group KPI's Updated for Continuing Operations
2019 Guidance for other Group KPI’s Updated for Continuing Operations Excluding currency impact Special items (EBITDA) ~ €2.0 billion R&D expenses ~ €5.3 billion Capital expenditures ~ €2.7 billion of which for intangible assets ~ €0.8 billion Depreciation and amortization ~ €4.3 billion of which fo