Bayer Ag · XETR:BAYN
Bayer — Q1 2019 Earnings Presentation
20 slides from Bayer's earnings presentation, Apr 25, 2019
Slide 1: Investor Conference Call Q1 2019 Results
Pictures to be updated Investor Conference Call /////////// Q1 2019 Results April 25, 2019 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information This release 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 actual
Slide 3: Q1 2019 Results: Business Update
Q1 2019 Results Business Update /////////// Werner Baumann, CEO
Slide 4: Strong Start into the Year and on Track to Meet FY Guidance
Strong Start into the Year and on Track to Meet FY Guidance € 13,015m € 4,188m Sales increased by 42.4% to €13.0bn (+4.1% cpa) Sales EBITDA EBITDA before special items Before special items improved 44.6% to €4.2bn Margin up 50 bps to 32.2% Core EPS plus 13.8% to €2.55 € 2.55 € 508m Free Cash Flow al
Slide 5: Progress in All Focus Areas
Progress in All Focus Areas Target Delivery Crop Science 1 Guidance for 2019 confirmed 2 Integration well underway Strong earnings performance 4 Consumer Health 3 Pharmaceuticals FDA inspection conducted in March “Fit to win” initiative starting to deliver Profitable growth continued FY guidance con
Slide 6: Crop Science with Strong Start into 2019
Crop Science with Strong Start into 2019 Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 4% + 0% +6% 6,444 Price Portfolio + % 2 120% + 6% cpa sales growth driven by Latin and North 2,861 America Good growth across herbicides, insecticides and cotton seeds & traits Q1'18 Q1'19 On t
Slide 7: 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% +5% 4,075 4,354 Price Portfolio - 1% - 0% Xarelto and Eylea grew by 15% each Continued strong performance in China Darolutamide submitted in the US, Europe and Q1'18 Q1'19 Jap
Slide 8: Consumer Health Start in Line with Expectations
Consumer Health Start in Line with Expectations Sales Volume Currency In million € - 1% + 2% 1,409 -1% 1,395 Price Portfolio - 0% - 1% Asia/Pacific and Latin America with positive growth Intense competition in North America Q1'18 Q1'19 Decline in EBITDA before special EBITDA items driven by lower vo
Slide 9: Q1 2019 Results: Financials & Outlook
Q1 2019 Results Financials & Outlook /////////// Wolfgang Nickl, CFO
Slide 10: Q1 Results
Q1 Results 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 €108m Negative Fx effect of €110m - # of shares increased from 886m to 980m Expanded CS business working capital need
Slide 11: Bridge: From Core EPS to Reported EPS
Bridge: From Core EPS to Reported EPS in € 2,50 Acquisition and integration costs mainly related to PPA (inventory step-up) -0.72 2,00 Restructuring costs mainly related to Bayer 2022 -0.50 1,50 Others 2.55 -1.07 -0.40 1,00 0.45 -0.17 0.06 1.27 0,50 0,00 Core EPS Amortization intangbile Special item
Slide 12: Net Financial Debt in Line to Meet FY Guidance
Net Financial Debt in Line to Meet FY Guidance in € million 45,000 443 -715 971 40,000 -5,216 35,000 41,257 41,956 36,740 10,000 5,000 0 Gross Financial Debt Bridge Financing Leasing Liabilities Financial Liabilities Gross Financial Debt Cash/Other Financial Net Financial Debt 31.12.2018 31.03.2019
Slide 13: FY 2019 Guidance Confirmed
FY 2019 Guidance Confirmed 20181 Group Forecast 2019 ∆ 2018 – 2019 (at constant currencies) Sales €39.6bn ~€46bn +~16% Fx-sensitivity: (thereof +~12% portfolio) ± 1% change of the € vs all EBITDA €9.5bn ~€12.2bn +~28% other currencies = (before special items) ∓ ~€340m on Sales & Core EPS €5.94 ~€6.8
Slide 14: Progress in All Focus Areas
Progress in All Focus Areas Target Delivery Crop Science 1 Deliver on operational targets 2 Integration of acquired business to shape the future of agriculture 4 Consumer Health 3 Pharmaceuticals Further strengthening of pipeline and Drive performance improvement intensify external sourcing 5 6 Effi
Slide 15: Investor Conference Call Q1 2019 Results
Pictures to be updated Investor Conference Call /////////// Q1 2019 Results April 25, 2019 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 16: Animal Health Performance on Prior-Year Level
Animal Health Performance on Prior-Year Level Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. - 3% + 3% –1% 414 421 Price Portfolio + 2% ± 0% Seresto, Drontal and Baytril with positive sales development Decrease in EBITDA before special items mainly due to lower volumes Q1'18 Q1'19 (
Slide 17: From EBITDA Before Special Items to Core EPS
From EBITDA Before Special Items to Core EPS P&L Q1 2018 Q1 2019 € million € million EBITDA before special items 2,896 4,188 Mainly related to acquisition and integration costs Special items -78 -1,050 (€492m) and restructuring costs (€393m) Reported EBITDA 2,818 3,138 Depreciation & Amortization -5
Slide 18: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation Q1 2018 Q1 2019 € million € million Net cash provided by operating activities 658 1,079 Cash outflows for PPE and intangible assets -349 -395 Interest and dividends received 22 24 Interest paid/received (incl. interest-rate swaps) -74 -200 Free Cash Flow 257 508 18 B
Slide 19: FY 2019 Guidance: Further Growth Expected for All Segments
FY 2019 Guidance: Further Growth Expected for All Segments Sales 2018 EBITDA-margin 2018 Sales Growth 2019 EBITDA-margin (before special items) (cpa2) 2019 (before special items) (at constant currencies) Crop €14.3bn1 18.6% ~4% ~25% Science Pharma €16.7bn 33.4% ~4% ~34% Consumer €5.5bn 20.1% ~1% ~21
Slide 20: 2019 Guidance for other Key Data of the Group
2019 Guidance for other Key Data of the Group At constant currencies Special items ~€2.0 billion R&D expenses ~€5.5 billion Capital expenditures ~€2.9 billion of which for intangible assets ~€0.8 billion Depreciation and amortization ~€4.3 billion of which for intangible assets ~€2.6 billion Core fi