Bayer Ag · XETR:BAYN
Bayer — Investor Day (March 2021)
40 slides from Bayer's investor day presentation, Mar 10, 2021
Slide 1: The Beginning of What's Next
R&D Pipeline Update The Beginning of What‘s Next /////////// Capital Markets Day March 10-11, 2021 Bob Reiter Head of R&D, Crop Science Division 35
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: R&D Strategic Priorities
1 R&D Strategic Priorities R&D Strategic Priorities Delivering World Class Innovation 1 Pursuing sustainable innovation to shape the future of agriculture 2 Delivering the leading R&D pipeline in scale, productivity and value 3 Leading the development of next-generation biotech traits 4 Optimizing l
Slide 4: Unmatched R&D Investment Powers Industry-Leading Portfolio
2 Leadership Unmatched R&D Investment Powers Industry-Leading Portfolio Shaping the Future of Agriculture with Sector’s Most Productive Innovation Platform Ag R&D Investment (€bn)3 R&D Platform #1 in Crop Science 2.0 1.2 1.0 0.8 • Fueled by~7,100 R&D employees in >50 countries 2 1 Bayer Crop Science
Slide 5: >100 Technology Agreements Fuel Open Innovation Model
2 Leadership >100 Technology Agreements Fuel Open Innovation Model From LEAPS to Licensing, Partnerships Power the Ability to Drive Disruptive and Iterative Innovation Partner of choice, with >100 technology collaborations, customer-sponsored research initiatives, venture capital agreements and crow
Slide 6: Breadth and Depth of Five Core R&D Platforms Power Innovation
2 Leadership Breadth and Depth of Five Core R&D Platforms Power Innovation Convergence of Leading R&D Platforms to Unlock Next Layer of Value Creation in Agriculture BEST-POSITIONED TO DISCOVER, COMBINE AND TAILOR SOLUTIONS FOR GROWERS SEEDS & TRAITS CROP PROTECTION DIGITAL AG Breeding Biotech Chemi
Slide 7: Meaningful Advancement of Most Valuable R&D Pipeline in Ag in 2020
2 Leadership Meaningful Advancement of Most Valuable R&D Pipeline in Ag in 2020 Converting Industry Leading Investment into New Products for Farmers Value of Up to €30bn 430 + >200 Total crop protection registrations in 2020 in Peak Sales1 New hybrids and varieties deployed across corn, soybeans 10
Slide 8: Unmatched Innovation Pipeline is Set to Drive Growth
3 Pipeline Overview Unmatched Innovation Pipeline is Set to Drive Growth Total Pipeline Peak Sales Potential Up to €30bn2; ~50% Incremental Corn S&T Other, Vegetables, Soybean S&T Herbicides Fungicides Insecticides Environmental Science Peak Sales Potential ~€10-11bn ~€4-5bn ~€3bn ~€3bn ~€2bn ~€5-6b
Slide 9: Next-generation biotech traits
next-generation biotech traits 35
Slide 10: Scale and Expertise in Biotech Crop Development Lead the Industry
4 Transformative Technologies Scale and Expertise in Biotech Crop Development Lead the Industry Developing World-Class Biotech Traits and Crops Trait Development Process (12-15 years) Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Gene/Trait Identification Proof of Concept Early Development Advanced Develo
Slide 11: Next-Gen Soy Traits to Offer Greatest Weed Control Flexibility
4 Transformative Technologies Next-Gen Soy Traits to Offer Greatest Weed Control Flexibility Technologies Provide Solutions to Address Farmer Needs, Herbicide Resistance Challenges • Glyphosate • HPPD • Glyphosate • HPPD Fourth-Gen herbicide Fifth-Gen Phase 3 5 tolerances • Dicamba • Glufosinate • 2
Slide 12: Third-Gen Intacta Further Enhances Insect Control Spectrum
4 Transformative Technologies Third-Gen Intacta Further Enhances Insect Control Spectrum Intacta 2 Xtend launches in 2021; Next-Generation Currently in Phase 3 • Builds on the Intacta franchise 3rd Gen. 3rd Gen. 3rd Gen. technologies by delivering Soybean Soybean Soybean multiple Control Insect Cont
Slide 13: First Biotech Trait to Launch for Piercing and Sucking Insects
4 Transformative Technologies First Biotech Trait to Launch for Piercing and Sucking Insects NEW: USDA Deregulation of Trait Paves Way for 2021 U.S. Stewarded Ground Breakers Program • Protein design and optimization resulted in a protein that controls targeted piercing/sucking insect pests through
Slide 14: Next-Gen Insect Control Traits in Corn Launching Near-Term
4 Transformative Technologies Next-Gen Insect Control Traits in Corn Launching Near-Term Below- and Above-Ground Insect Control Refresh with Broader Spectrum, Better Efficacy Aug. 9, 2019 Demo Plot Root Dig in Waterloo, Iowa, U.S. 2018-2019 Season at V5-V6 in Sorriso, MT, Brazil Root and leaf protec
Slide 15: Game-Changing Short Stature Corn Shows Improved Standability
4 Transformative Technologies Game-Changing Short Stature Corn Shows Improved Standability High Wind Events in Bayer Field Trials Consistently Demonstrate a Reduction in Severity of Damage Three Approaches to Short Stature Corn To Provide Market Access Flexibility • In this photograph from Iowa in s
Slide 16: Advanced breeding technologies
advanced breeding technologies 35
Slide 17: Annual Germplasm Upgrade Drives Growth and Attracts Partners
4 Transformative Technologies Annual Germplasm Upgrade Drives Growth and Attracts Partners Global Germplasm Libraries and Advanced Breeding Tools Deliver High-Performing Seeds Corn Soybeans Cotton Vegetables • Deployed >200 new hybrids • Deployed >200 new varieties • Deployed >10 varieties in 2020;
Slide 18: Scale and Leading Technology Drives New Seed Development
4 Transformative Technologies Scale and Leading Technology Drives New Seed Development Optimizing Extensive Germplasm Library to Develop New Capabilities for Better Customer Solutions 8–10 Year Product Development Timeline Vast Library of Every seed Grow Selections in Prescribed Field New Generation
Slide 19: Precision Breeding: Moving from Selecting the Best to Designing the Best
4 Transformative Technologies Precision Breeding: Moving from Selecting the Best with Breeding 3.0 to Designing the Best Seeds for Farmers Uses Advanced Genetic Models and Selection, Environmental Modeling and Predictive Analytics Breeders working with new AI algorithms design germplasm combinations
Slide 20: Gene Editing Targets With High Commercial Relevance Accelerating
4 Transformative Technologies Gene Editing Targets With High Commercial Relevance Accelerating Nearly 200 Target Identified in Several Technically Challenging Focus Areas Gene Editing Pipeline Targets Across Crops Collaboration with Pairwise Included • Corn crop productivity editing target results i
Slide 21: New approaches in crop protection
new approaches in crop protection 121
Slide 22: Small Molecule Candidates in Discovery Phase Double
4 Transformative Technologies Small Molecule Candidates in Discovery Phase Double Driven by Continued Strategic Enhancements to Identify and Optimize Candidates Redefining Our Approach Drivers Weed, Insect and Fungal Resistance Supported by Data Science Approaches Biological Screening increased auto
Slide 23: Well Positioned to Maintain Track Record of Success in Small Molecules
4 Transformative Technologies Well Positioned to Maintain Track Record of Success in Small Molecules Bayer Has Launched At Least One New Active Ingredient (AI) Per Year Since 2007 Industry Leading Performance in CP Development • Across all indications, the company has consistently – and significantl
Slide 24: Scale, Innovation Underpin Excellent Life Cycle Management
4 Transformative Technologies Scale, Innovation Underpin Excellent Life Cycle Management Sustains Value Generation from Crop Protection Small Molecule Chemistry Multi-Dimensional 8x Sales Enablers of Unique Life Cycle Management in Approach to Small Molecule Fruits & Grapes & Crop Protection Nematic
Slide 25: Plenexos: The Next Generation Ketoenol Insecticide
4 Transformative Technologies Plenexos: The Next Generation Ketoenol Insecticide First Launches Expected in 2024; > €300m Peak Sales Potential NEW: First ketoenol insecticide expected to offer both foliar and soil uses Plenexos will enhance ketoenol insecticides by offering: • High plant mobility, w
Slide 26: New Herbicide Molecule Unlocks Greater Flexibility
4 Transformative Technologies New Herbicide Molecule Unlocks Greater Flexibility First New Mode of Action for Post Emergence Weed Control in 30 Years Advances to Phase 3 Potential to build on #1 position in global herbicides1 Enables continued use Glyphosate Glyphosate + Graminicide Mix Partner + Ne
Slide 27: Fox Supra Fungicide Upgrades Fox Franchise in Brazil
4 Transformative Technologies Fox Supra Fungicide Upgrades Fox Franchise in Brazil New technology to control Asian Soybean Rust; >€500m Peak Sales Potential Opportunity Builds on #1 position in soybean fungicides1 • Long-lasting solution to offer unrivaled control of Asian Soybean Rust, the most dif
Slide 28: Exploring New Product Concepts Drives Future Growth for Biologics
4 Transformative Technologies Exploring New Product Concepts Drives Future Growth for Biologics Open Innovation approach broadens product offerings with exceptional product development and support 4-6 Year Product Development Timeline Partner of choice for developing biological products including ne
Slide 29: Serenade: Delivering Biologic Growth in Expanding Markets
4 Transformative Technologies ® Serenade : Delivering Biologic Growth in Expanding Markets Accelerated growth in emerging soil and expanding foliar bacterial markets across fruit & vegetable NEW – Serenade Soil Activ propels growth of Serenade brands >€150M peak net sales in next 10 years Serenade “
Slide 30: Powered by data science
powered by data science 32
Slide 31: Data is Digital Currency to Build a Global Integrated Platform
4 Transformative Technologies Data is Digital Currency to Build a Global Integrated Platform Continuous Circle of Value Creation from Richer Data Sets, Leading to Smarter Digital Tools Drive customer satisfaction Develop better seed and and loyalty, attract more data chemistry products Gather and Or
Slide 32: Digital Insights Unlock Opportunity to Farm in New & Different Ways
4 Transformative Technologies Digital Insights Unlock Opportunity to Farm in New & Different Ways Quantitative Comparisons and Analysis Can Further Optimize Performance, Improve Ag Practices EXAMPLE 1: Seed Advisor Models Improve Productivity Per Acre With Better Seed Placement Recommendations • Mod
Slide 33: Key Takeaways
5 Key Takeaways Key Takeaways Delivering World Class Innovation 1 Pursuing sustainable innovation to shape the future of agriculture 2 Delivering the leading R&D pipeline in scale, productivity and value 3 Leading the development of next-generation biotech traits 4 Optimizing large and diverse germp
Slide 34: Strategic Business Entity R&D Pipeline
March 2021 Pipeline Strategic Business Entity R&D Pipeline ///////////
Slide 35: Corn R&D Pipeline – Peak Sales Potential: €10-11bn
6 Appendix Corn R&D Pipeline – Peak Sales Potential: €10-11bn R&D Target Technology Phase* Enhancement** Dig Br PBt 1 2 3 4 Dev. Subm. YIELD & ABIOTIC STRESS Annual germplasm upgrades Short Stature Corn Short Stature Corn 1 Seed Placement North America NEW Seed Density North America2 EMEA LATAM *R&D
Slide 36: Soybean R&D Pipeline – Peak Sales Potential: €4-5bn
6 Appendix Soybean R&D Pipeline – Peak Sales Potential: €4-5bn R&D Target Technology Phase* Enhancement** Dig Br PBt 1 2 3 4 Dev. Subm. YIELD & ABIOTIC STRESS Annual germplasm upgrades High Yielding Soy1 Seed Placement North America PEST MANAGEMENT Chewing Pests Insect Protection *R&D Phases: 2nd ge
Slide 37: Other R&D Pipeline – Peak Sales Potential: ~€5-6bn
6 Appendix Other R&D Pipeline – Peak Sales Potential: ~€5-6bn R&D Target Technology Phase* Enhancement** R&D Target Technology Phase* Enhancement** Dig Br PBt CP 1 2 3 4 Dev. Subm. Dig Br PBt CP 1 2 3 4 Dev. Subm. YIELD & ABIOTIC STRESS YIELD & ABIOTIC STRESS Annual germplasm Annual germplasm upgrad
Slide 38: Herbicides R&D Pipeline – Peak Sales Potential: ~€3bn
6 Appendix Herbicides R&D Pipeline – Peak Sales Potential: ~€3bn R&D Target Crop Phase* Enhancement** Corn Soy Other F/V 1 2 3 4 Dev. Subm. New AI Development Novel PPO Herbicide1 New Herbicide MOA NEW New Herbicide MOA NEW New Herbicide MOA NEW LCM Non-Selective Improved Dicamba formulations Improv
Slide 39: Insecticides R&D Pipeline – Peak Sales Potential: ~€2bn
6 Appendix Insecticides R&D Pipeline – Peak Sales Potential: ~€2bn R&D Target Technology Phase* Enhancement** Corn Soy Other F/V 1 2 3 4 Dev. Subm. Chewing Pests Belt Smart Sucking Pests Rice Planthopper Insecticide NEW NEW New Biological Insecticide Plenexos Novel Mite Solution NEW Chewing & Suckin
Slide 40: Fungicides R&D Pipeline – Peak Sales Potential: ~€3bn
6 Appendix Fungicides R&D Pipeline – Peak Sales Potential: ~€3bn R&D Target Technology Phase* Enhancement** Corn Soy Other F/V 1 2 3 4 Dev. Subm. Delaro Complete adv. to launch Minuet / Serenade Soil Activ NEW Early Pipeline New Biological Fungicide New Fungicide NEW Asian Soybean Rust Fox Supra (In