Bayer Ag · XETR:BAYN
Bayer — DZ Bank Equity Conference 2019
35 slides from Bayer's conference presentation, Nov 18, 2019
Slide 1: Bayer Roadshow Presentation
Pictures to be updated Bayer Roadshow Presentation November 18, 2019 DZ Bank Equity Conference Oliver Luckenbach, Senior IR Manager Peter Dahlhoff, IR Manager
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: Today’s agenda
Today’s agenda Q3 2019 Results Bayer at a glance Our strategy Bayer: a compelling investment
Slide 4: Bayer Remains on Track - Good Performance Across all Divisions
Bayer Remains on Track - Good Performance Across all Divisions (all figures: continuing operations) € 9,830m € 2,291 Sales increased to €9.8bn (+5% cpa) Sales EBITDA EBITDA before special items Before special items improved by 8% to €2.3bn Margin up 30 bps to 23.3% Core EPS plus 6% to €1.16
Slide 5: Progress in all Focus Areas
Progress in all Focus Areas 1 2 Target Delivery Crop Science Guidance for 2019 confirmed Good operational performance in and adjusted for discontinued challenging market environment operations and Fx Integration and synergy realization well on track 3 4 Pharmaceuticals Consumer Health Contin
Slide 6: Update Glyphosate Litigation
Update Glyphosate Litigation Served lawsuits from approx. 42,700 plaintiffs (as of October 11, 2019) Number of lawsuits not indicative of the merits of the litigation Rise in number of plaintiffs follows an exponential increase in advertising sponsored by plaintiffs’ lawyers* Appeals in the first th
Slide 7: Crop Science with Positive Growth Dynamics
Crop Science with Positive Growth Dynamics Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. 1 + % 3 + % +5% 3,948 3,733 Price Portfolio 4 + % - 2% +5% cpa (+6% ca pro forma) sales growth driven by North & Latin America Good growth across corn and soybean seed & traits as well as f
Slide 8: 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% 4,504 Portfolio 4,163 Price + 0% 0 +/- % Xarelto up 9%, Eylea grew by 16% Continued strong performance in China FDA approvals of Nubeqa (darolutamide) and the Q3'18
Slide 9: Consumer Health with Solid Performance
Consumer Health with Solid Performance Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 2% + 1% +4% Price Portfolio 1,297 1,288 2 + % - 5% EMEA and Latin America with positive development North America and Asia/Pacific with declining sales Q3'18 Q3'19 Nutritionals, Allergy & C
Slide 10: Q3 Results (Continuing Operations)
Q3 Results (Continuing Operations) 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 €215m - Positive Fx effect of €77m after - Core financial result went from - Increase driven by positive op
Slide 11: Bridge: Core EPS to EPS (Q3 2019)
Bridge: Core EPS to EPS (Q3 2019) in € 1.40 1.20 1.00 +0.04 +0.22 0.80 -0.65 +0.28 0.60 1.16 -0.01 1.01 1.05 0.40 0.20 0.00 Core EPS Amortization 1.16items Special Special items Tax effect EPS Continuing Discontinued EPS (total) Q3'19 intangbile assets, (EBITDA relevant) financial result/ on adjustm
Slide 12: Bayer Delivers on Announced Portfolio Measures
Bayer Delivers on Announced Portfolio Measures Animal Health Currenta Coppertone Dr Scholl’s Sales & EBITDA* Sales: €1,501m Sales: €1,344m 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% st
Slide 13: Net Financial Debt Reduced to €37.9bn in Q3
Net Financial Debt Reduced to €37.9bn in Q3 50,000 in € million 45,000 573 370 -584 -5,738 40,000 35,000 43,598 43,239 38,808 37,860 10,000 5,000 0 Gross Financial Debt Bonds Commercial Paper Other Financial Gross Financial Debt Cash / Net Financial Debt Net Financial Debt 30.06.2019 Liabilities 30.
Slide 14: Key Initiatives for Q4 2019
Key Initiatives for Q4 2019 Crop Science: Expect continued growth in Latin America and a strong start to the US season; continued momentum in achieving integration synergies Pharmaceuticals: Continuing strong growth of Xarelto, Eylea and China Consumer Health: Further driving turnaround and expect N
Slide 15: FY 2019 Guidance Confirmed, Aligned to Continuing Operations
FY 2019 Guidance Confirmed, Aligned to Continuing Operations and Including Expected Currency Impact Excluding currency impact 2019 outlook Of which 2019 outlook for 2019 outlook for Expected confirmed (excl. discontinued continuing operations continuing operations currency impact portfolio measures)
Slide 16: Focus Areas
Focus Areas 1 2 Target Delivery Crop Science Deliver on operational targets Integration of acquired business to shape the future of agriculture 3 4 Pharmaceuticals Consumer Health Deliver sales and margin expansion Drive performance improvement Further strengthening of pipeline and intensi
Slide 17: Today’s agenda
Today’s agenda Q3 2019 Results Bayer at a glance Our strategy Bayer: a compelling investment
Slide 18: We are a Global Leader in Health and Nutrition
We are a Global Leader in Health and Nutrition Use natural resources more efficiently & responsibly Purpose: Secure sufficient supply of We leverage science to quality food address urgent societal needs – with the ultimate goal to Preserve & improve people’s lives restore health 18 Bayer Roadshow Pr
Slide 19: We Address Megatrends Which Impact Lives Across the Globe
We Address Megatrends Which Impact Lives Across the Globe Megatrends through 2050 Aging population Growing population Pressure on ecosystems Age 60+ – 20% +> 100% 2.1 >20% of total 7.6 9.8 + 2.2bn 2,129 1,700 Significant loss in arable land per population1 people1 capita3 1.0 2017 2050 2017 2050 201
Slide 20: We are a Major Global Player with Broad Geographical Presence
We are a Major Global Player with Broad Geographical Presence All figures as of FY 2018 € 39.6bn € 9.6bn 117k 90 Sales EBITDA Employees Countries Fx & portfolio adj. Before special items 32.000 of which in Germany with local Bayer presence Sales by region1 € 4.7bn € 5.2bn 29% 36% North America EMEA
Slide 21: We Have Three Strong Segments in Health and Nutrition
We Have Three Strong Segments in Health and Nutrition Crop Science Growing ahead of competition over last five years on average #1 Best-in-class profitability through the cycle Position Leading portfolio of seeds & traits, crop protection and digital farming Pharmaceuticals Leading One of th
Slide 22: Strong Businesses Contributed to Sales and Earnings Growth
Strong Businesses Contributed to Sales and Earnings Growth in 2018 Sales by segment Fx & portfolio adj., in 2018 EBITDA by segment Before special items in 2018 Commentary Crop Science sales and earnings Other / Reconciliation Animal Health development reflects Monsanto Animal Health Consumer Healt
Slide 23: We are Active in Attractive, Innovation-Driven Markets
We are Active in Attractive, Innovation-Driven Markets Market size CAGR Joint 2018 2019 – 2022 characteristics Crop Science ~€92bn1 ~3%2 Secular above-GDP growth trend Pharmaceuticals ~€885bn3 4 – 5% Highly regulated, innovation- driven markets High market profitability Consumer Health ~€135bn
Slide 24: Every Market Has its Own Specific Characteristics
Every Market Has its Own Specific Characteristics Crop Science Pharmaceuticals Consumer Health Market with Highly high innovative Strong brands seasonality, and research- are decisive for Bayer with Consolidated intensive success Fragmented solid first half industry with industry Very market with Ba
Slide 25: Crop Science: Number One Global Platform
Crop Science: Number One Global Platform Sales development EBITDA margin development Sales by region (pro-forma) In €m In %, before special items In %, in 2018 FINANCIALS 19,322 14,266 > 30.0 North 22 EMEA 24.9 24.0 23.4 ~25.0 America 9,494 10,218 9,915 9,577 21.3 44 18.6 10 Latin 25 Asia / Pacific
Slide 26: Pharma: Focused on Therapeutic Areas With High Unmet Needs
Pharma: Focused on Therapeutic Areas With High Unmet Needs Sales development EBITDA margin development Sales by region In €m In %, before special items In %, in 2018 FINANCIALS 15,308 16,420 16,847 16,746 North 13,512 30.7 30.2 32.0 33.9 33.4 ~34.0 > 35.0 America 24 39 EMEA Latin 6 America 31 2014 2
Slide 27: Consumer Health: Focus on Five Core OTC Categories
Consumer Health: Focus on Five Core OTC Categories Sales development EBITDA margin development Sales by region In €m In %, before special items In %, in 2018 FINANCIALS 6,076 6,037 5,862 23.6 24.0 23.4 > 24.0 North 5,450 21.0 20.1 ~ 21.0 34 EMEA America 42 4,245 11 13 Asia / Pacific Latin 2014 2015
Slide 28: Today’s agenda
Today’s agenda Q3 2019 Results Bayer at a glance Our strategy Bayer: a compelling investment
Slide 29: Four Clear Strategic Priorities to Drive Value Creation
Four Clear Strategic Priorities to Drive Value Creation Growth ahead of competition Strong free cash in health and nutrition flow generation Consistent profitability Disciplined enhancement capital allocation 29 Bayer Roadshow Presentation | November 2019
Slide 30: Good Progress of Bayer 2022 Synergy and Efficiency Programs
Good Progress of Bayer 2022 Synergy and Efficiency Programs Outlook 2020 Implementation of Bayer 2022 platform program well on track GROUP Annual cost savings of €1.4bn by 2022 confirmed Functional targets defined and translated into granular action plan ~€2.6bn Consultation with employee repr
Slide 31: Clear Priorities for Capital Allocation
Clear Priorities for Capital Allocation Targeted free cash flow Disciplined capital allocation Divestment proceeds Growing dividends Shareholder Consider share buy backs with parts of return divestment proceeds ~€ 23bn Deleveraging Target range ~€26 – 28bn1 net financial debt by end 2022 2019e
Slide 32: Today’s agenda
Today’s agenda Q3 2019 Results Bayer at a glance Our strategy Bayer: a compelling investment
Slide 33: Bayer: A Compelling Investment
Bayer: A Compelling Investment 1 Global leader in health and nutrition 2 Active in highly attractive, growing and profitable markets driven by megatrends 3 Focused strategy and ambitious targets for 2022 4 Strong deleveraging ability to achieve single-A rating again 5 Clear priorities for capital al
Slide 34: Appendix
Appendix
Slide 35: Late-stage Pipeline with Progress in Oncology
Late-stage Pipeline with Progress in Oncology Larotrectinib Darolutamide Copanlisib Finerenone Vericiguat (Vitrakvi) (Nubeqa) (Aliqopa) Indication TRK-fusion Prostate Cancer Lymphoma Diabetic Kidney Chronic Heart Cancer Disease Failure Launched in Launched in Launched in Phase III Phase III Status t