Bayer Ag · XETR:BAYN
Bayer — Q3 2017 Earnings Presentation
16 slides from Bayer's earnings presentation, Oct 26, 2017
Slide 1: Investor Conference Call Q3 2017 Results
Investor Conference Call Q3 2017 Results October 26, 2017 / Werner Baumann, CEO
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
Slide 3: Q3 2017 – Highlights
Q3 2017 – Highlights Increase in sales and earnings Deconsolidation of Covestro Group outlook for 2017 confirmed - reflecting the new Group structure Agreement reached to sell selected Crop Science businesses Progress made with the planned acquisition of Monsanto Pharma pipeline advancements Page 3
Slide 4: Increase in Sales and Earnings
Q3 2017 – Increase in Sales and Earnings Sales EBITDA Core EPS in € million before special items cont. operations % currency & portfolio adj. in € million in € 8,258 2,118 2,204 8,025 1.53 1.47 Q3’16 Q3’17 Q3’16 Q3’17 Q3’16 Q3’17 +1% +4% -4% Page 4 Q3 2017 Investor Conference Call • Werner Baumann 2
Slide 5: Key Themes for Q3 2017
Key Themes for Q3 2017 Growth profile at Pharma intact Pharma pipeline advancements Deconsolidation of Covestro Page 5 Q3 2017 Investor Conference Call • Werner Baumann
Slide 6: Group Outlook for FY 2017
Group Outlook for FY 2017 Sales ∆ % yoy Fx and portfolio adj., EBITDA before special items , Forecast 2017 Continuing operations 2016 update October Change Sales €34.9bn Low-single-digit % increase to €35bn - €36bn Adj. EBITDA €9.3bn Slightly above prior year level Core EPS €6.67 Low-single-digit %
Slide 7: Appendix
Investor Conference Call Q3 2017 Results Appendix
Slide 8: Cash Flow And Net Financial Debt Development
Q3 2017 – Cash Flow And Net Financial Debt Development Cash Flow Net Financial Debt in € million; ∆% yoy, Fx adj., continuing operations in € billion Operating 9.4 EBITDA CapEx Cash Flow -€4.7bn 1,969 1,903 441 4.7 ∆ y-o-y -1% -20% -22% June 30, 2017 Sept. 30, 2017 Page 8 Q3 2017 Investor Conference
Slide 9: Pharmaceuticals with Sales and Earnings Growth
Q3 2017 – Pharmaceuticals with Sales and Earnings Growth Sales Key Growth Products EBITDA in € million; ∆% yoy, Fx & portfolio adj. Q3‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy 799 +7% 772 4,152 4,065 +2% 1,493 +5% 1,421 469 409 +20% 102 +25% 85 77 +28% 64 75
Slide 10: As Expected, Weak Performance at Consumer Health
Q3 2017 – As Expected, Weak Performance at Consumer Health Sales Top Products EBITDA in € million; ∆% yoy, Fx & portfolio adj. Q3‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy 1,425 256* 328 +8% 1,320 -3% 247* 274 -16% 123 +9% 118 89 -7% 101 88 +6% 85 Q3‘16 Q3‘17
Slide 11: Sales Gains at Crop Science – Situation in Brazil Stabilized
Q3 2017 – Sales Gains at Crop Science – Situation in Brazil Stabilized Sales Regions EBITDA in € million; ∆% yoy, Fx & portfolio adj. Q3‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy Environm. 2,057 2,031 +3% Science 146 Europe / Middle 525 -0% 149 +7% Seeds 152 E
Slide 12: Animal Health Increases Sales in Weak Market Environment
Q3 2017 – Animal Health Increases Sales in Weak Market Environment Sales Top Products EBITDA in € million; ∆% yoy, Fx & portfolio adj. Q3‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy 119 -3% 360 359 +1% 128 89 81 -9% 29 +17% 25 34 +5% 33 24 -6% 27 Q3‘16 Q3‘17 Q3‘
Slide 13: FY 2017 – Guidance by Segment (update October 2017)
FY 2017 – Guidance by Segment (update October 2017) Sales ∆ % yoy Fx and portfolio adj., EBITDA before special items Continuing operations Sales Adj. EBITDA Mid-single-digit % increase to High-single-digit % increase. Pharma ~€17bn. Margin improvement Key growth products >€6bn Consumer High-single-d
Slide 14: Covestro At-Equity Investment – Requirement of PPA and Subsequent Amortization
Covestro At-Equity Investment – Requirement of PPA and Subsequent Amortization of PPA Step-ups • Per Sep 30, 2017, all of COV’s net assets were derecognized and an at-equity investment recognized with a book value equaling the fair value of the remaining COV shares (24.6% w/o 8.9% Bayer Pension Trus
Slide 15: Covestro At-Equity Investment – PPA Step-ups and P&L Impact
Covestro At-Equity Investment – PPA Step-ups and P&L Impact of PPA-Amortization Covestro At-Equity-PPA € Sep 30, 2017 • Market value of retained shares constitutes Covestro net assets (24.6 % Bayer share) 1,262m fair value (carrying amount) of at-equity PPA Step-ups Intangibles 1,613m investment: €7
Slide 16: Investor Conference Call Q3 2017 Results
Investor Conference Call Q3 2017 Results October 26, 2017 / Werner Baumann, CEO