Bayer Ag · XETR:BAYN
Bayer — Q3 2020 Earnings Presentation
24 slides from Bayer's earnings presentation, Nov 3, 2020
Slide 1: Investor Conference Call Q3 2020 Results
Pictures to be updated Investor Conference Call /////////// Q3 2020 Results November 3, 2020 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: Q3 2020 Results: Business Update
Q3 2020 Results Business Update /////////// Werner Baumann, CEO
Slide 4: Q3 2020: Challenging quarter – currency-adjusted group outlook confirmed
Q3 2020: Challenging quarter – currency-adjusted group outlook confirmed € 8,506m -5% € 1,795m -21% Sales yoy* EBITDA yoy Before special items € 0.81 -30% € 1,237m -2% yoy yoy Core EPS Free Cash Flow * ∆% yoy, Fx & portfolio adj 4 Bayer Q3 2020 Investor Conference Call
Slide 5: Q3 2020: Crop Science significantly impacted by seed returns and currency headwinds
Q3 2020: Crop Science significantly impacted by seed returns and currency headwinds Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. 10% - 12 - % -12% 3,948 Price Portfolio 3,028 - 1% 0% Sales decline driven by North America (-41%) primarily due to higher corn and cotton seed return
Slide 6: Q3 2020: Pharmaceuticals shows sequential improvement and significant margin uplift
Q3 2020: Pharmaceuticals shows sequential improvement and significant margin uplift Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 5% - 4% -2% 4,504 4,229 Price Portfolio Xarelto´s growth trajectory remains intact (+14%) - 7% 0% Resumption of elective treatments led to recover
Slide 7: Q3 2020: Consumer Health with strong growth momentum and margin expansion
Q3 2020: Consumer Health with strong growth momentum and margin expansion Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 6% - 7% 1,288 +6% 1,205 Price Portfolio Sales growth across all regions driven by + 1% - 5% Nutritionals (+21%) due to continued consumer demand for preventiv
Slide 8: Q3 2020 Results: Financials & Outlook
Q3 2020 Results Financials & Outlook /////////// Wolfgang Nickl, CFO
Slide 9: Q3 2020: Challenging quarter – focus on free cash flow
Q3 2020: Challenging quarter – focus on free cash flow Sales EBITDA * Core EPS Free Cash Flow In million €, ∆% yoy, Fx & portfolio adj. In million €, before special items In €, Cont. Operations In million € Negative FX effect of -€754 million Negative FX effect of -€205 million Core tax rate: 23% ve
Slide 10: 9M 2020: On track to meet currency-adjusted Group guidance
9M 2020: On track to meet currency-adjusted Group guidance Sales EBITDA * Core EPS Free Cash Flow In million €, ∆% yoy, Fx & portfolio adj. In million €, before special items In €, Cont. Operations In million € Negative FX effect of -€924 million Negative FX effect of -€178 million Core tax rate 9M:
Slide 11: EPS affected by impairments and divestment gain
EPS affected by impairments and divestment gain in € -9.42 -0.68 0.81 1.05 -2.79 Impairment -7.14 on PPE -7.84 5.05 Impairment -2.28 on Goodwill 2.00 -0.92 0.37 Core EPS Depreciation & Impairment Special items Special items Tax effect EPS Discontinuing EPS (total) EPS (total) Q3'2020 Amortization (E
Slide 12: Net financial debt decreases due to Animal Health divestment
Net financial debt decreases due to Animal Health divestment in € million 45,000 -2,369 5,017 -523 -5,067 40,000 35,000 43,201 -7,632 41,076 35,993 30,000 -1,740 28,268 5,000 -494 0 Gross Bonds / FX Commercial Other Gross Cash Money Market Elanco Covestro Net Financial Net Financial Financial Debt P
Slide 13: Currency review: Roughly 80% of our net sales are in foreign currencies
Currency review: Roughly 80% of our net sales are in foreign currencies Net Sales FX-Basket USD FX BRL CNY JPY EUR 13 Bayer Q3 2020 Investor Conference Call
Slide 14: Currency review: Phasing for Group sales differs by quarter and region
Currency review: Phasing for Group sales differs by quarter and region Quarter 1 Quarter 2 Quarter 3 Quarter 4 30% EMEA 25% 13.1bn1 22% 23% 34% 26% NA 22% 15.1bn1 18% 32% 33% LA 6.6bn1 17% 18% 26% 25% AP 25% 24% 8.6bn1 1 Full-Year 2019; percentages show proportion of regional full-year 2019 sales pe
Slide 15: Currency review: In 2020, substantial EUR appreciation weighs on performance
Currency review: In 2020, substantial EUR appreciation weighs on performance Ø Q4 ‘19 FX June 50,0% 4.55 6.61 40,0% FX - Rates 70.86 91.83 30,0% 21.35 26.16 % deviation vs. year-end rates 20,0% 10,0% 1.11 1.17 0,0% -10,0% 44 Net Sales vs. PY1 -214 -754 ~ -1.000 1 million EURO Q1 Q1 2020 Q2 Q2 2020 Q
Slide 16: Currency review: Full-Year FX sensitivities for Bayer Group
Currency review: Full-Year FX sensitivities for Bayer Group Impact of major currencies Sales cEBITDA (after hedging) FX Basket -1% change1 FX Basket -1% change1 (in %) (in Mio. €) (in %) (in Mio. €) USD ~40% ~140 ~25% ~25 BRL ~10% ~35 ~15% ~10 CNY ~10% ~35 ~15% ~15 JPY ~5% ~20 ~5% ~5 Other ~35% ~120
Slide 17: We confirm our currency-adjusted Group guidance for 2020
We confirm our currency-adjusted Group guidance for 2020 Currency-adjusted Including currency impact Outlook Outlook Outlook as of Aug 2020 as of Nov 2020 as of Nov 20203 Sales €43-€44bn €43-€44bn ✓ €41-€42bn EBITDA margin (before special items) ~ 28% ~ 28% ✓ ~ 28% Core EPS €6.70 – €6.90 €6.70 – €6.
Slide 18: Investor Conference Call Q3 2020 Results (Annex)
Pictures to be updated Investor Conference Call /////////// Q3 2020 Results (Annex) November 3, 2020 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 19: Key KPIs by division Q3 2020
Key KPIs by division Q3 2020 Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million] Q3'19 Q3'20 Q3'19 Q3'20 Q3'19 Q3'20 Q3'19 Q3'20 Q3'19 Q3'20 Sales 3,948 3,028 4,504 4,229 1,288 1,205 90 44 9,830 8,506 Sales by region: Europe / Middle East / Africa 733 656 1,701 1,669 423 41
Slide 20: Key KPIs: Bayer Group
Key KPIs: Bayer Group Q3 2019 Q3 2020 % y-o-y 1 Net Sales 9,830 8,506 -13 / -5% EBITDA before special items 2,285 1,795 -21.4% Special items -3 -901 Mainly related to non-cash impairment on Crop Reported EBITDA 2,282 894 Depreciation & Amortization -1,073 -10,293 859.3% Science assets and goodwill R
Slide 21: Updated Guidance 2020: Group and divisions
Updated Guidance 2020: Group and divisions Outlook as of Aug 2020 Update outlook as of Nov 2020 Sales Growth 2020 EBITDA-margin Sales Growth 2020 EBITDA-margin (cpa) 2020 (cpa) 2020 (before special items) (before special items) Group 0-1% ~28% 0-1% ~28% Crop ~2% ~25% ~1% ~25% Science Pharma ~-1% 34-
Slide 22: Finerenone significantly reduces renal and cardiovascular outcomes in CKD and T2D
Finerenone significantly reduces renal and cardiovascular outcomes in patients with CKD and T2D Primary and Key Secondary Endpoint Main Safety Outcomes Hazard ratio p-value Safety outcome (%) Finerenone Placebo (95% CI) Primary composite kidney endpoint1 0.82 (0.73-0.93) 0.0014 Any adverse event (AE
Slide 23: Acquisition of AskBio: A leading clinical-stage gene therapy company
Acquisition of AskBio: A leading clinical-stage gene therapy company dedicated to developing AAV gene therapies Through the acquisition of AskBio Bayer enhances it´s research and development capabilities and is building a leading position in gene therapy US-based private company specialized in the m
Slide 24: Pharmaceuticals division: Overview development portfolio
Pharmaceuticals division: Overview development portfolio (as of November 2020) Phase I (25) Phase II (17) Phase III (10) Selitrectinib (TRK Inhibitor, formerly LOXO-195) Urothelial Cancer /// Rogaratinib (pan-FGFR Inhibitor) Prostate Cancer (mHSPC) /// Darolutamide (AR-Inhibitor) Rogaratinib (pan-FG