Slide 1: dbAccess Berlin Conference
dbAccess Berlin Conference Liam Condon, Member of the Board of Management of Bayer AG and Head of Crop Science June 23, 2017
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information Certain statements contained in this communication may constitute “forward-looking statements.” Actual results could differ materially from those projected or forecast in the forward-looking statements. The factors that could cause actual r
Slide 3: Bayer – A World-Class Life Science Company
Bayer – A World-Class Life Science Company • Delivered record performance in 2016 • Good progress with the agreed acquisition of Monsanto • Outlook 2017 projects further growth in sales and earnings • Mid-term aspirations emphasize growth and margin potential • Focused leadership strategy at Pharma
Slide 4: Highly Attractive Agriculture Industry
Highly Attractive Agriculture Industry ~10bn -17% €120bn United Nations 2015 Nelson(1) / FAO(2) People on the planet by 2050 Biophysical effect of climate change shocks on yields by 2050 -17% +50% from ~€86bn in 2016(4) Estimated agriculture inputs market size by 2025 From 0.218 ha/capita in 2015 to
Slide 5: Q1 2017 – Crop Science Performance on Track
Q1 2017 – Crop Science Performance on Track Sales Regions EBITDA in € million; ∆% yoy, Fx & portfolio adj. Sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy 3,120 +3% 2,936 147 North America EMEA 117 Environm. +21% Sales: 1,042 (+9%) Sales: 1,462 (+2%) Science Seeds 722
Slide 6: Regional Farming Environment Update
Regional Farming Environment Update USA Western Europe Japan • Corn and soybean plantings nearly completed • Lack of rain and cold spell in spring likely • Total agricultural area expected to impact cereal yields across Western to decline further • Acreage shift from corn to soybean forecasted which
Slide 7: Slow Ag Market Recovery Expected From End 2017
Slow Ag Market Recovery Expected From End 2017 Global Ag market(1) year-on-year growth Major Market Drivers % 12 Forecast 10 • Demand is steadily growing as long-term drivers 8 are intact 6 • Several strong harvests in a row hiked global stocks of key commodities 4 • Stocks-to-use ratios for soy and
Slide 8: Crop Science Delivers Growth and Robust Margins Over the Ag Cycle
Crop Science Delivers Growth and Robust Margins Over the Ag Cycle 12.4% 11.2% 8.9% 9.4% Crop Science Sales growth 1.7% yoy cpa(1) (2) 0.1% >10% >10% 6% Ag Market 5% yoy growth(4) 0% -1% 25.5% 24.9% Crop Science 24.2% 24.4% adj. EBITDA ~23-25% 23.8% margin(2) (3) 22.8% 2011 2012 2013 2014 2015 20
Slide 9: Creating a Global Leader in Agriculture
Creating a Global Leader in Agriculture 2016 Pro Forma Sales (in € billion) Crop Protection Seeds & Traits (1) (2) 22.5 (3) ~52% 14.2 14.2 (2) 12.6 9.9 5.6 ~48% Pro forma Pro forma Pro forma ChemChina Ag DuPont Ag BASF Ag Syngenta Dow Ag Based on company information and internal calculations (at avg
Slide 10: Targeting Above-Market Growth and Strong Profitability
Targeting Above-Market Growth and Strong Profitability Broad Truly Global Product Portfolio Footprint Integrated Innovation Solutions Engine $1.5n synergy potential (1) after year three plus ~$1.5n total annual synergies(1) after year three plus additional synergiessynergies from integrated solution
Slide 11: Advancing from Combined Offering to Integrated Solutions
Advancing from Combined Offering to Integrated Solutions From short-term to long-term Combined Offering Integrated Solutions • Ability to offer a broad • Smart combination • Innovation of differentiated variety of seed and and optimized usage systems based on chemical products of products technologi
Slide 12: Accelerating Innovation Through Joint R&D Forces
Accelerating Innovation Through Joint R&D Forces "Adoption and adaptation of sustainable farming systems and practices require technological innovation and investment in R&D" (United Nations FAO (1)) • New unmet needs and challenges (e.g. climate change, resistances) require break-through innovation
Slide 13: Agreed Monsanto Acquisition – Achievements
Agreed Monsanto Acquisition – Achievements All-cash offer to Monsanto’s Signing of definitive Pre-merger planning phase Board of Management merger agreement May 2016 September 2016 October 2016 - today • April 18, 2016: Private meeting • July 1, 2016: Offer increased to $125 • Q4 2016: Regulatory fi
Slide 14: Crop Science Mid-Term Aspirations
Crop Science Mid-Term Aspirations Aspirations (incl. Monsanto)(1) Sales Above market growth > 30% after year 3 post closing Adj. EBITDA margin As presented on September 20, 2016; Sales ∆ Fx & portf. adjusted, EBITDA before special items; 2015 figures restated; Outlook depends on specific planning as
Slide 15: dbAccess Berlin Conference
dbAccess Berlin Conference Liam Condon, Member of the Board of Management of Bayer AG and Head of Crop Science June 23, 2017