Bayer Ag · XETR:BAYN
Bayer — FY2019 Earnings Presentation
28 slides from Bayer's earnings presentation, Feb 27, 2020
Slide 1: Investor Conference Call FY/Q4 2019 Results
Pictures to be updated Investor Conference Call /////////// FY/Q4 2019 Results February 27, 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: Business Update
FY/Q4 2019 Results Business Update /////////// Werner Baumann, CEO
Slide 4: FY 2019: We have delivered
FY 2019: We have delivered 2018 2019 outlook1) 2019 Sales €36.7bn ~ €43.5bn €43.5bn ✓ EBITDA (before special items) €9.0bn ~ €11.5bn €11.5bn ✓ Core EPS €5.60 ~ €6.35 €6.40 ✓ Free cash flow 4.7bn ~ €3-4bn €4.2bn ✓ 1) as updated on October 30, 2019 (for continuing operations incl. currency impact) 4 B
Slide 5: Progress in all focus areas
Progress in all focus areas 1 2 Target Delivery Crop Science We delivered strong Solid operational performance in performance across the board challenging markets Very successful integration – synergy realization substantially accelerated 3 4 Pharmaceuticals Consumer Health Strong top-line a
Slide 6: Crop Science benefits from successful integration
Crop Science benefits from successful integration Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. 0% 1 + % +1% 19,832 14,266 Price Portfolio +1% cpa (-1% ca pro forma) sales growth driven + 2% + 36% by Latin America; North America was flat due to the record rainfall in the US in sp
Slide 7: Pharmaceuticals driven by Xarelto, Eylea and China
Pharmaceuticals driven by Xarelto, Eylea and China Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 6% 2 + % +6% 17,962 16,746 Price Portfolio Strong performance of Xarelto (+13%), Eylea 0% 0% (+13%) and China (+25%) EBITDA before special items increased by 7%, driven by good vo
Slide 8: Consumer Health rebound to peer growth
Consumer Health rebound to peer growth Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 1% + 1% +3% 5,450 5,462 Price Portfolio Good sales growth (+3%) was supported by a 2 + % - 4% strong fourth quarter (+6%) Increasing growth dynamic in all regions over the year FY'18 FY'19
Slide 9: FY 2019: Net sales footprint by region
FY 2019: Net sales footprint by region €2.3bn -0.3% cpa 15% North America €1.8bn 14% 27% €15.1bn 58% €0.7bn €1.8bn 35%* +2.7% cpa Europe/ 33% -3.6% cpa -5.7% cpa €4.0bn €8.7bn Middle 8% -2.3% cpa +0.1% cpa East / Africa €4.2bn 21% €13.2bn 30%* -1.9% cpa Asia €0.6bn Pacific 54% €8.6bn +11.9% cpa 9% €
Slide 10: Bayer 2030 sustainable development objectives announced
Bayer 2030 sustainable development objectives announced Our ambition is to generate a positive sustainable impact for society and the environment through our business operations. Support 100m smallholder farmers1 in low- and middle-income countries (LMIC) Making our own operations carbon neutral and
Slide 11: Financials & Outlook
FY/Q4 2019 Results Financials & Outlook /////////// Wolfgang Nickl, CFO
Slide 12: Q4 2019 results: Strong finish to FY 2019
Q4 2019 results: Strong finish to FY 2019 Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy, (Fx & portfolio adj.) In million €, before special items In € In million € - Positive Fx effect of €135m - Positive Fx effect of €49m after - Core financial result improved from - Increase driven by
Slide 13: FY 2019 results: All targets achieved
FY 2019 results: All targets achieved Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy, (Fx & portfolio adj.) In million €, before special items In € In million € - Positive Fx effect of €548m - Negative Fx effect €-43m after hedging - Core financial result went from €-1.2bn - Better than g
Slide 14: Bridge: Core EPS to EPS (FY 2019)
Bridge: Core EPS to EPS (FY 2019) in € 7,0 0.7 0.6 6,0 0.5 5,0 -3.64 0.4 4,0 6.40 1.71 0.3 3,0 0.2 2,0 4.17 -1.99 1.48 0.21 2.46 0.1 1,0 1.80 0.0 0,0 Core EPS Amortization Special items Special items Tax effect EPS Continuing Discontinued EPS (total) EPS (total) FY'19 intangbile assets, (EBITDA rele
Slide 15: Delivered on portfolio measures
Delivered on portfolio measures Animal Health Currenta Coppertone Dr Scholl’s Sales & EBITDA* Sales: €1,501m Sales: €1,343m Sales: 213m USD Sales: 234m USD 2018 EBITDA: €358m EBITDA: €220m Below average margin Below average margin US$7.6bn, thereof US$5.3bn in cash and ~€1.4bn (60% stake and Gross P
Slide 16: Net financial debt reduced to €34.1bn in FY 2019
Net financial debt reduced to €34.1bn in FY 2019 in € million 852 40,000 -1,833 -455 -803 -4,950 35,000 41,257 39,018 35,679 30,000 34,068 5,000 0 Gross Financial Bonds Bank Liabilities Leasing/IFRS16 Other Financial Gross Financial Cash / Net Financial Debt Net Financial Debt Debt 31.12.2018 Liabil
Slide 17: Group guidance 2020
Group guidance 2020 Group guidance 2020 ∆ 2020/2019 2019 (before currency impact) Sales €43.5bn €44 to 45bn +3 to 4% (cpa) EBITDA-margin 26.4% ~ 28% ~ +160bps (before special items) Core EPS €6.40 €7.00 to 7.20 +9% to 13% Free cash flow €4.2bn ~ €5bn ~ +19% Net debt €34.1bn ~ €27bn ~ -21% 17 Bayer F
Slide 18: Divisional guidance 2020
Divisional guidance 2020 Sales Sales EBITDA-margin EBITDA- Key parameters / drivers 2019 Growth before special items margin 2020 2019 2019 2020 (before special items (cpa1) change in enabling cost allocation2 and currency impact) + Rebound from adverse weather in North Crop America in 2019 €19.8bn ~
Slide 19: Focus areas 2020
Focus areas 2020 1 2 Target Delivery Crop Science Deliver on operational targets Grow above market Further margin improvement 3 4 Pharmaceuticals Consumer Health Deliver sales and margin expansion Drive performance improvement Further launches of Nubeqa & Vitrakvi Launch preparation fo
Slide 20: Investor Conference Call
Pictures to be updated Investor Conference Call /////////// FY/Q4 2019 Results February 27, 2020 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 21: Animal Health with solid performance in FY 2019
Animal Health with solid performance in FY 2019 Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. 0% + 3% +2% 1,501 1,571 Portfolio Price Seresto with positive performance (+6%), + 2% 0% primarily in Europe EMEA, Asia/Pacific and Latin America with good sales development FY'18 FY'1
Slide 22: Q4 2019 - Segment overview
Q4 2019 - Segment overview Discontinued Continued Operations Operation Crop Science Pharma Consumer Health Animal Health In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. -1% +7% 4,6
Slide 23: FY 2019 - Segment overview
FY 2019 - Segment overview Discontinued Continued Operations Operation Crop Science Pharma Consumer Health Animal Health In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. +1% +6% 17,
Slide 24: Bridge: Core EPS to EPS (Q4 2019)
Bridge: Core EPS to EPS (Q4 2019) in € 1.50 1,5 1.30 1,3 1.10 1,1 0.90 0,9 0.70 0,7 -1.18 1.47 1.44 1.29 0.50 0,5 0.30 0,3 0.10 0,1 -0.10 -0,1 -0.04 -0.49 -0.30 -0,3 0.42 -0.08 -0.50 -0,5 Core EPS Armortization / Write- Special items Special items Tax effect EPS Continuing Discontinued EPS (total) Q
Slide 25: Free cash flow better than guidance of €3-4bn
Free cash flow better than guidance of €3-4bn FY 2018 FY 2019 € million € million Net cash provided by operating activities 7,917 8,207 Cash outflows for PPE and intangible assets -2,593 -2,650 Interest and dividends received 247 135 Interest paid/received (incl. interest-rate swaps) -919 -1,478 Fre
Slide 26: From EBITDA before special items to core EPS (Q4 2019)
From EBITDA before special items to core EPS (Q4 2019) P&L Q4 2018 Q4 2019 € million € million EBITDA before special items 1,964 2,483 Mainly related to restructuring (€384m) and Special items (EBITDA) -2,017 -481 acquisition/integration costs (€66m) Reported EBITDA -53 2,002 Depreciation & Amortiza
Slide 27: From EBITDA before special items to core EPS (FY 2019)
From EBITDA before special items to core EPS (FY 2019) P&L FY 2018 FY 2019 € million € million EBITDA before special items 8,969 11,503 Mainly related to restructuring (€1,237m) and Special items (EBITDA) 726 -1,949 acquisition/integration costs (€707m) Reported EBITDA 9,695 9,554 Depreciation & Amo
Slide 28: 2020 Guidance for other group KPI's
2020 Guidance for other group KPI’s Before currency impact Special items (EBITDA) ~ €0.9 billion R&D expenses ~ €5.4 billion Capital expenditures (cash relevant) ~ €2.8 billion of which for intangible assets (cash relevant) ~ €0.7 billion Depreciation and amortization (clean) ~ €4.3 billion of which