Bayer Ag · XETR:BAYN

Bayer — Q2 2023 Earnings Presentation

35 slides from Bayer's earnings presentation, Aug 8, 2023

  1. Slide 1: Q2 2023 Investor Call

    Q2 2023 //////////////// Investor Call August 8th, 2023

  2. 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

  3. Slide 3: CEO Remarks

    CEO Remarks ////////////////

  4. Slide 4: Q2 2023: Group Performance

    Q2 2023: Group Performance NET SALES EBITDA CORE EPS FREE CASH FLOW in m€, ∆% yoy in m€, in €, Cont. Operations in m€ before special items -14% (-8% cpa) 12.819 -25% 3.349 11.044 2.527 -37% Q2'22 Q2'23 1,93 1.140 1,22 26.1% 22.9% Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 -473 Currency headwind Mainly glyp

  5. Slide 5: FY 2023: Group Outlook

    FY 2023: Group Outlook FY OUTLOOK FY OUTLOOK in € (as of May 2023) (NEW) at constant currencies 1 at constant currencies 1 Net Sales 51bn – 52bn 48.5bn – 49.5bn Key Assumptions EBITDA • Representing sales growth of -2% to -3% cpa 12.5bn – 13bn 11.3bn – 11.8bn (before special items) • Including portf

  6. Slide 6: HY1: Core Business Grows 5%; Glyphosate Sales Decline ~€1.8bn

    HY1: Core Business Grows 5%; Glyphosate Sales Decline ~€1.8bn Net Sales EBITDA Volume In m€ m€, before special items -11% -11% EBITDA Margin before special items (-9% cpa) Price -26% +3% 14,908 5.418 13,275 +558 (cpa) -1,845 -346 3.992 Currency (cpa) -1% Portfolio 36.3% 30.1% -2% HY1’22 HY1’23 Core

  7. Slide 7: Core Business Growth Still Strong in Revised FY23 Outlook; Glyphosate Sales to Normalize

    Core Business Growth Still Strong in Revised FY23 Outlook; Glyphosate Sales to Normalize to 2020 Levels (updated Aug 2023) Sales Growth 1 EBITDA Margin 1 (cpa) (before special items) Crop Science FY 2023 Outlook ~ -5% ~ 21% (revised Aug 2023) Key Assumptions Sales • Core Business expected to grow 5-

  8. Slide 8: Global Growth in Core Business, Powered by Innovation-Driven Pricing

    Global Growth in Core Business, Powered by Innovation-Driven Pricing NA EMEA 4-6% 8-10% APAC 6-8% LATAM >10% FY2023E Core Business Sales Growth by Region ∆% cpa yoy FY 2023E Sales Growth by Segment ∆% cpa yoy Corn Insecticides Soybeans Other \ \ \ \ >10% >10% 0% to 2% >-1% Herbicides Fungicides Vege

  9. Slide 9: Industry Leading Corn Platform to Drive Mid-term Growth

    Industry Leading Corn Platform to Drive Mid-term Growth €11bn of Peak Sales Potential in Pipeline; Generating New Traits and >250 New Hybrids Deployed Annually Corn Rootworm 3 Launch Success Continues Industry’s only RNAi-based Rootworm Trait xxxxx Expected in 2024 NA 300 on-farm trials on 30,000 U.

  10. Slide 10: Strong Performance of Launch Assets, China Business with Improved QoQ Performance

    Strong Performance of Launch Assets, China Business with Improved QoQ Performance Net Sales EBITDA Volume m€, ∆% yoy m€, before special items +1% EBITDA Margin before special items -5% Price (0% cpa) -1% -7% 1.478 1.379 Currency 4.818 4.557 -5% Portfolio 30.7% 30.3% -1% Q2'22 Q2'23 Q2'22 Q2'23 Pharm

  11. Slide 11: Revised FY23 Outlook Driven by Slower Topline Dynamics, Product Mix and Faster R&D Progress

    Revised FY23 Outlook Driven by Slower Topline Dynamics, Product Mix and Faster R&D Progress (updated Aug 2023) Sales Growth 1 EBITDA Margin 1 (cpa) (before special items) Pharmaceuticals FY 2023 Outlook ~ 0% ~ 28% Key Assumptions Sales • Accelerated growth from Nubeqa and Kerendia to exceed €1bn, Ey

  12. Slide 12: Nubeqa Sales nearly Doubling Again in Q2

    Nubeqa Sales nearly Doubling Again in Q2, Now at #3 of Pharma’s Top-Selling Medicines Global sales development (€m, cpa growth rates) US launch performance (monthly NBRx)1 +96% 1.000 800 201 158 178 127 600 105 400 US ex-US 200 Aug-22: mHSPC approval - Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 US cont

  13. Slide 13: Kerendia Continues Strong Launch Dynamics, non-US Growth led by China

    Kerendia Continues Strong Launch Dynamics, non-US Growth led by China Global sales development (€m, cpa growth rates) US launch performance (monthly NBRx)1 +250% 10.000 67 8.000 48 52 6.000 29 20 4.000 US ex-US 2.000 0 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22

  14. Slide 14: Continued Growth in Competitive Environment

    Continued Growth in Competitive Environment Net Sales EBITDA Volume m€, ∆% yoy m€, before special items -4% EBITDA Margin before special items -2% Price (+5% cpa) +10% +2% 1.496 1.466 Currency 330 335 -7% Portfolio 22.1% 22.9% 0% Q2'22 Q2'23 Q2'22 Q2'23 Consumer Health Q2 2023 Further expansion of B

  15. Slide 15: New Precision Health Unit to Enhance Personal Health

    New Precision Health Unit to Enhance Personal Health Empowering self-care throughout the consumer journey As healthcare landscape & consumer …we enable superior health outcomes behavior is changing… with personalized solutions “Do-it-yourself” diagnostics & monitoring Personalized care, earlier in t

  16. Slide 16: Q&A Session

    Q&A Session ////////////////

  17. Slide 17: Q2 2023 Appendix

    Q2 2023 //////////////// Appendix August 8th, 2023

  18. Slide 18: FY 2023: Group Other KPIs (as of Aug. 2023)

    FY 2023: Group Other KPIs (as of Aug. 2023) FY OUTLOOK FY OUTLOOK in € (as of May 2023) (NEW) at constant currencies 1 at constant currencies 1 Special Items Key Assumptions ~ - €1.0bn ~ - €1.0bn (EBITDA) • Special items (EBITDA) primarily driven by ongoing restructuring programs Core Depreciation ~

  19. Slide 19: Updated Divisional Outlook Full Year 2023

    Updated Divisional Outlook Full Year 2023 EBITDA EBITDA Sales Growth Sales Growth Margin Margin as of May, cpa 1 revised Aug, cpa 1 before special items 1 before special items 1 ~ +1.5% ~ 25% ~ -5% ~ 21% Crop Science ~ +1% > 29% ~ 0% ~ 28% Pharmaceuticals ~ +5% ~ 23% ~ +5% ~ 23% Consumer Health 19 B

  20. Slide 20: HY1: Group Performance

    HY1: Group Performance NET SALES EBITDA CORE EPS FREE CASH FLOW in m€, ∆% yoy in m€, in €, Cont. Operations in m€ before special items -7% (-5% cpa) 27.458 25.433 -19% 8.600 -24% HY1'22 HY1'23 6.998 -47 5,46 4,17 31.3% 27.5% -4.575 HY1'22 HY1'23 HY1'22 HY1'23 HY1'22 HY1'23 Currency headwind Currency

  21. Slide 21: Q2 2023: Core EPS to EPS Bridge

    Q2 2023: Core EPS to EPS Bridge in € thereof impairment -1.92 Crop Science -2.33 -0.20 -0.07 +0.06 21 Bayer Q2 2023 Investor Call /// August 8th, 2023

  22. Slide 22: Q2 2023: Summary

    Q2 2023: Summary Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Sales 6,461 4,924 4,818 4,557 1,496 1,466 44 97 12,819 11,044 Sales by region: Europe / Middle East / Africa 1,255 973 1,878 1,

  23. Slide 23: Q2: Core Business Flat, Glyphosate Sales Decline €1.2bn

    Q2: Core Business Flat, Glyphosate Sales Decline €1.2bn Net Sales EBITDA Volume m€, ∆% yoy m€, before special items EBITDA Margin before special items -15% -24% (-19% cpa) Price -59% -3% 6,461 1.749 -41 4,924 (cpa) Currency -1,156 -340 -3% (cpa) 725 Portfolio 27.1% 14.7% -2% Q2’22 Q2’23 Core Busines

  24. Slide 24: Glyphosate-Based Herbicides Sales Reverting to 2020 Levels

    Glyphosate-Based Herbicides Sales Reverting to 2020 Levels Branded Glyphosate-Based Herbicide Sales Rapidly Normalizing as Generic Reference Price Reverts to Historical Median $14 6 $12 5 $10 4 $8 Bn € $/KG 3 $6 $3.80/Kg 2 $4 $2 1 $- 0 2019 2020 2021 2022 2023E Chinese Generic Glyphosate Technical B

  25. Slide 25: Headwinds on Xarelto and China Business Largely Balanced by Strong Performance of Launch Assets

    Headwinds on Xarelto and China Business Largely Balanced by Strong Performance of Launch Assets, Eylea and Radiology Net Sales EBITDA Volume m€, ∆% yoy m€, before special items -1% EBITDA Margin before special items -5% Price (-1% cpa) -1% -13% 9.442 8.964 Currency 2.867 -3% 2.485 Portfolio 30.4% 27

  26. Slide 26: Continued Growth in all Regions

    Continued Growth in all Regions Net Sales EBITDA Volume m€, ∆% yoy m€, before special items -4% EBITDA Margin before special items +1% Price (+5% cpa) +9% -1% Currency 3.008 3.039 718 714 -4% Portfolio 23.9% 23.5% 0% HY1'22 HY1'23 HY1'22 HY1'23 Consumer Health HY1 2023 Bepanthen continuing to Cough

  27. Slide 27: HY1 2023: Core EPS to EPS Bridge

    HY1 2023: Core EPS to EPS Bridge in € thereof impairment Crop Science -2.62 0.30 -0.17 27 Bayer Q2 2023 Investor Call /// August 8th, 2023

  28. Slide 28: HY1 2023: Summary

    HY1 2023: Summary Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] HY1 22 HY1 23 HY1 22 HY1 23 HY1 22 HY1 23 HY1 22 HY1 23 HY1 22 HY1 23 Sales 14,908 13,275 9,442 8,964 3,008 3,039 100 155 27,458 25,433 Sales by region: Europe / Middle East / Africa 3,3

  29. Slide 29: Q2 2023 Innovation Appendix

    Q2 2023 //////////////// Innovation Appendix August 8th, 2023

  30. Slide 30: Crop Science Innovation Summit Recap – NY, June 20, 2023

    Crop Science Innovation Summit Crop Science Innovation Summit Recap – NY, June 20, 2023 More than Doubling our Accessible Markets by 2030 >100bn¹ EUR >200bn1 EUR 2022 Global Ag Input Market 2030 Global Ag Input Market & Related Adjacencies Crop Seed and Market Broadening our reach to Protection Trai

  31. Slide 31: Crop Science: Seed & Traits and Digital R&D Pipeline

    Crop Science: Seed & Traits and Digital R&D Pipeline (Annual Update Feb 2023) Phase I Phase II Phase III Phase IV PSP €21bn CORN SEED & TRAIT Corn Disease Shield - NA 5th Generation Lepidoptera Protection Short Stature Corn – Biotech Trait3 Short Stature Corn – Breeding Approach 2nd Generation Seed

  32. Slide 32: Crop Science: Crop Protection R&D Pipeline

    Crop Science: Crop Protection R&D Pipeline (Annual Update Feb 2023) €9bn PSP Phase I Phase II Phase III Phase IV Life Cycle Management1 PSP New AI Development Non-Selective New Herbicide Glyphosate LCM New Herbicide Selective HERBICIDES New Herbicide New Herbicide ~€4bn Merlin Flexx / Adengo LCM Mat

  33. Slide 33: Pharmaceuticals: R&D Developments (since last update on April 26, 2023)

    Pharmaceuticals: R&D Developments (since last update on April 26, 2023) Phase I Phase II Phase III Commercial Announcement to present Phase transition of Submission of Aflibercept 8 Bemdaneprocel (Parkinson’s Gadoquatrane (High mg for regulatory approval in Disease Cell Therapy) data of Relaxivity C

  34. Slide 34: Pharmaceuticals: Pipeline Overview (as of July 31, 2023)

    Pharmaceuticals: Pipeline Overview1 (as of July 31, 2023) Phase 02 Phase I Phase II Phase III DGKalpha Inh (BAY 2862789) Elimusertib (ATR Inhibitor) (BAY 1895344) Regorafenib (combi Nivolumab) (BAY 734506) Copanlisib (PI3K Inhibitor) Solid tumors (recurrent or metastatic) Non-Hodgkin Lymphoma (CHRON

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