Bayer Ag · XETR:BAYN
Bayer — Q2 2022 Earnings Presentation
29 slides from Bayer's earnings presentation, Aug 4, 2022
Slide 1: Investor Conference Call Q2 2022 Results
Investor Conference Call /////////// Q2 2022 Results August 4th, 2022 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: Q2 2022 Results: Business Update
Q2 2022 Results Business Update /////////// Werner Baumann, CEO
Slide 4: We Raise Our Guidance Based on Half Year Performance
We Raise Our Guidance Based on Half Year Performance 1 Growth 2 Resilience 3 Innovation 4 Bayer Q2 2022 Investor Conference Call /// August 4th, 2022
Slide 5: Gas Exposure and Mitigation Measures
Gas Exposure and Mitigation Measures Energy & Utilities Footprint 1 (2021) Own Operations (DIRECT) Preparations to completely mitigate own gas exposure well advanced • Technical readiness to reduce natural gas dependency ~97% Other • Switch to alternative and renewable energy sources CoGS • Building
Slide 6: Q2 2022 Results: Group Performance & Outlook
Q2 2022 Results Group Performance & Outlook /////////// Wolfgang Nickl, CFO
Slide 7: Sustained Growth and Earnings Dynamics in Q2
Sustained Growth and Earnings Dynamics in Q2 Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy In million €, before special items In €, Cont. Operations In million € +18% (+10% cpa) 12.819 10.854 -1% +30% +20% 1.152 1.140 3.349 1,93 2.577 1,61 23.7% 26.1% Q2'21 Q2'22 Q2'21 Q2'22 Q2'21 Q2'22
Slide 8: Crop Science: Continued Strong Growth
Crop Science: Continued Strong Growth Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Herbicides (+51%) with continued favorable +29% market dynamics Volume (+17% cpa) • Corn S&T (+10%) supported by the launch -2% 6.461 of high-perfor
Slide 9: Pharmaceuticals: Driving Launch Products
Pharmaceuticals: Driving Launch Products Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • EyleaTM (+12%) with increases in all regions Volume • XareltoTM (-6%) impacted by volume-based +2% procurement in China and loss of exclusivity +
Slide 10: Consumer Health: Sustained Growth Across All Regions
Consumer Health: Sustained Growth Across All Regions Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Allergy & Cold (+17%) driven by higher number of cold incidences Volume +3% • AsteproTM launch preparation and trade +16% (+7% cpa) i
Slide 11: FY 2022: Increased Outlook for Crop Science and Consumer Health
FY 2022: Increased Outlook for Crop Science and Consumer Health ES divestment effects not included; at constant currencies (based on 2021 average Actual rates) OLD NEW As of Mar ‘22 As of Aug ‘22 Sales Growth EBITDA-margin Sales Growth EBITDA-margin 2022 2022 2022 2022 (cpa) (before special items) (
Slide 12: FY 2022: Group Outlook Raised
ES divestment effects not included; at constant currencies (based on 2021 average Actual rates) FY 2022: Group Outlook Raised OLD NEW (as of Mar ’22) (as of Aug ’22) At constant currencies At constant currencies Estimated currency impact1 Net Sales €47bn – ~ €46bn ~ + €3bn €48bn EBITDA margin ~ 26%
Slide 13: Investor Conference Call Q2 2022 Results
Investor Conference Call /////////// Q2 2022 Results August 4th, 2022 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 14: FY 2022: Other Group KPIs Outlook
ES divestment effects not included; at constant currencies (based on 2021 average Actual rates) FY 2022: Other Group KPIs Outlook OLD NEW (as of Mar ’22) (as of Aug ’22) At constant currencies At constant currencies Special items (EBITDA) ~ -€1.0bn ~ -€1.0bn Depreciation and amortization (clean) ~ €
Slide 15: Q2 2022: Core EPS to EPS Bridge
Q2 2022: Core EPS to EPS Bridge in € 15 Bayer Q2 2022 Investor Conference Call /// August 4th, 2022
Slide 16: Q2 2022: Key KPIs Bayer Group
Q2 2022: Key KPIs Bayer Group Q2 2021 Q2 2022 Net Sales 10,854 12,819 EBITDA before special items 2,577 3,349 Special items -3,468 -698 1 Reported EBITDA -891 2,651 Glyphosate Litigation Provision in Q2 2021, 1 Depreciation & Amortization -1,390 -2,482 additional PCB Litigation Provision in Q2 2022
Slide 17: Q2 2022: Key KPIs by Division
Q2 2022: Key KPIs by Division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million] Q2'21 Q2'22 Q2'21 Q2'22 Q2'21 Q2'22 Q2'21 Q2'22 Q2'21 Q2'22 Sales 5,021 6,461 4,494 4,818 1,290 1,496 49 44 10,854 12,819 Sales by region: Europe / Middle East / Africa 1,003 1,255 1,774 1,878
Slide 18: HY1 2022: Group Overview
HY1 2022: Group Overview Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy In million €, before special items In €, Cont. Operations In million € +18% (+12% cpa) 27.458 23.182 +30% +29% -47 5,46 8.600 4,20 -2.074 6.695 28.9% 31.3% HY1'21 HY1'22 HY1'21 HY1'22 HY1'21 HY1'22 HY1'21 HY1'22 Signi
Slide 19: HY1 2022: Crop Science
HY1 2022: Crop Science Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Double-digit sales growth across all regions +28% • Herbicides (+56%) with stronger pricing in light Volume (+20% cpa) of continued tight supply and strong demand
Slide 20: HY1 2022: Pharmaceuticals
HY1 2022: Pharmaceuticals Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • EyleaTM (+13%) driven by strong growth in all regions Volume +3% +7% • XareltoTM (-6%) impacted by VBP driven (+2% cpa) lower price and volumes in China as well
Slide 21: HY1 2022: Consumer Health
HY1 2022: Consumer Health Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Allergy & Cold with exceptional rebound (+28%) driven by high cold incidences Volume +7% • Digestive Health (+14%) due to sustained +18% demand for MiraLAX in N
Slide 22: HY1 2022: Key KPIs Bayer Group
HY1 2022: Key KPIs Bayer Group HY1 2021 HY1 2022 Net Sales 23,182 27,458 EBITDA before special items 6,695 8,600 Special items -3,417 -657 1 Reported EBITDA 3,278 7,943 Glyphosate Litigation Provision in Q2 2021, 1 Depreciation & Amortization -2,476 -3,562 additional PCB Litigation Provision in Q2 2
Slide 23: HY1 2022: Key KPIs by Division
HY1 2022: Key KPIs by Division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million] HY1'21 HY1'22 HY1'21 HY1'22 HY1'21 HY1'22 HY1'21 HY1'22 HY1'21 HY1'22 Sales 11,667 14,908 8,859 9,442 2,542 3,008 114 100 23,182 27,458 Sales by region: Europe / Middle East / Africa 2,884 3,
Slide 24: Innovation
Innovation 24 Bayer Q2 2022 Investor Conference Call /// August 4th, 2022
Slide 25: Pharmaceuticals – Overview Development Portfolio (as of August 4th, 2022)
Pharmaceuticals – Overview Development Portfolio (as of August 4th, 2022) Phase I (17) Phase II (12) Phase III (10) Elimusertib (ATR Inhibitor) (BAY 1895344) Regorafenib (combi Nivolumab) (BAY 734506) Darolutamide (AR Inhibitor) /// Solid tumors (recurrent or metastatic) /// Prostate Cancer (mHSPC)
Slide 26: Pharmaceuticals – R&D Developments since last Update on May 10, 2022
Pharmaceuticals – R&D Developments since last Update on May 10, 2022 • Approved in China to treat patients with chronic kidney disease associated with type 2 diabetes Kerendia (Finerenone) (CKD/T2D) • Approved in China to treat patients with chronic heart failure and reduced ejection fraction Verquv
Slide 27: Crop Science Division: R&D Pipeline (Corn, Soybean, Vegetables)
Crop Science Division: R&D Pipeline (as of February 2022) Key Corn Seed & Traits, Soybean Seed & Traits and Other Projects with ~€19-€21bn Peak Sales Potential; ~50% Incremental Phase I Phase II Phase III Phase IV Life Cycle Mgmt.1 Digital Disease Mgmt. – NA 5th Generation Lepidoptera Protection Tra
Slide 28: Crop Science Division: R&D Pipeline (as of February 2022)
Crop Science Division: R&D Pipeline (as of February 2022) Key Crop Protection Projects with ~€9bn Peak Sales Potential; ~50% Incremental Phase I Phase II Phase III Phase IV Life Cycle Management1 New AI Development Non-Selective Glyphosate LCM New Herbicide New Herbicide (Post-Emergence Broad Acre)
Slide 29: Consumer Health Division: Accelerating Growth with Innovation
Consumer Health Division: Accelerating Growth with Innovation Selected Examples of Recent Launches or Approvals Astepro Rx-to-OTC Switch AleveX Topical Pain Relief Solutions Bepanthen extension to Dry Skin (launch in 2022) (launched 2021) (launched 2021) First OTC Steroid-Free Antihistamine Expa