Slide 1: Q2 2024 Investor Call
///////////// Health for all, Hunger for none Q2 2024 Investor Call August 06, 2024
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: Bill Anderson, Chief Executive Officer
///////////// Health for all, Hunger for none BILL ANDERSON Chief Executive Officer
Slide 4: Solid Group Performance
Solid Group Performance Sales Core Free HY1 2024 Growth EPS Cash Flow (cpa) BAYER GROUP +1% €3.76 -€1.4bn vs PY vs PY vs PY Crop Science Pharmaceuticals Consumer Health Sales Growth (cpa) -1% +4% +2% EBITDA Margin (before special items) 26.2% 28.1% 22.3% Full Year 2024 Group Outlook confirmed cpa =
Slide 5: Strategic Update: Advancing on Our Top Priorities
Strategic Update: Advancing on Our Top Priorities Growth & Innovation: Litigation: • Pharma: Key pipeline achievements • PCB: Increased indemnification recovery efforts in mid- and late-stage • Glyphosate: • Crop Science: New VT4PRO corn generation • Favorable ruling in Australia delivering strong y
Slide 6: Growth & Innovation: Revised Pharma R&D Strategy
Growth & Innovation: Revised Pharma R&D Strategy With Achievements in Earlier Stages And Late-Stage Assets Major newsflow since Q1 2024 Rebuilding mid-stage pipeline Progressing on label expansions with a highly innovative profile and late-stage assets ARANOTE PhIII data pave way to further Gene the
Slide 7: Delivering 2024: Operational Priorities in HY2
Delivering 2024: Operational Priorities in HY2 Drive Eylea 8mg and continue growth momentum of launch assets Deliver strong core business growth and stringent cost management Drive demand and leverage innovation to accelerate Consumer Health’s growth 7 /// Bayer Q2 2024 Investor Call /// August 06,
Slide 8: Wolfgang Nickl, Chief Financial Officer
///////////// Health for all, Hunger for none WOLGANG NICKL Chief Financial Officer
Slide 9: Q2 2024: Resilient Group Performance
Q2 2024: Resilient Group Performance Q2 2023 Q2 2024 ∆% yoy in €bn +3% cpa Currency headwind of €0.2bn Net Sales 11.0 11.1 (+1% rep) EBITDA 2.5 2.1 Unfavorable Crop Science mix effect (EBITDA Margin) -16% and higher incentive provisions; (22.9%) (18.9%) currency headwind €0.1bn before special items
Slide 10: Q2 2024: Crop Science
Q2 2024: Higher Glyphosate Volumes Offset Headwinds in Core Crop Protection Crop Science Q2 2024 Net Sales EBITDA Volume €m, before special items €m, ∆% yoy +4% EBITDA Margin before special items +1% cpa Price 4,924 (+1% rep) 4,981 -3% Glyphosate: 725 -28% +42% cpa 524 Currency Core 0% Business: 14.
Slide 11: Q2 2024: Pharmaceuticals
Q2 2024: Growth of Launch Assets Overcompensates Xarelto Decline; Tight Cost Management Supports Margin Resilience Pharmaceuticals Q2 2024 Volume Net Sales1 EBITDA €m, ∆% yoy €m, before special items +1% EBITDA Margin before special items +4% cpa (+1% rep) Price +3% 4,605 -4% 4,557 +0.5%, 1,379 1,32
Slide 12: Q2 2024: Consumer Health Return to Growth
Q2 2024: Return to Growth After Soft Start in Q1 Consumer Health Q2 2024 Volume Net Sales EBITDA -6% €m, ∆% yoy €m, before special items +5% cpa EBITDA Margin before special items (-1% rep) Price 1,466 1,458 +11% -6% 335 314 Currency -6% 22.9% 21.5% Portfolio 0% Q2’23 Q2’24 Q2’23 Q2’24 // Sales expa
Slide 13: Outlook 2024: Divisions
Outlook 2024: Divisions 2023 2024 2024 as reported at constant FX1 estimated FX impact2 Net Sales €23.3bn -1% to +3%3 ~-2%pts EBITDA Margin 21.7% 20% to 22% not material Crop Science (before special items) Net Sales €18.1bn 0% to +3% ~-3%pts Pharmaceuticals EBITDA Margin 28.7% 26% to 29% ~-2%pts (be
Slide 14: FY 2024 Group Outlook Confirmed
FY 2024 Group Outlook Confirmed in €bn 2023 2024 2024 as reported at constant FX1 estimated FX impact2 Net Sales 47.6 -1% to +3% -2% to -3%pts EBITDA 11.7 ~ -4%pts (before special items) -9% to -3% Core EPS (in €) 6.39 5.10 to 5.50 ~ -0.30 Free Cash Flow 1.3 2.0 to 3.0 ~ -0.3 Net Financial Debt 34.5
Slide 15: Q&A Session
///////////// Health for all, Hunger for none Q&A Session August 06, 2024
Slide 16: Appendix: Outlook
///////////// Health for all, Hunger for none APPENDIX Outlook 2024
Slide 17: Outlook 2024: Modelling Considerations Unchanged
Outlook 2024: Modelling Considerations Unchanged GROUP KEY DRIVER (€bn) 2024 at constant FX1 Special items (EBITDA) primarily driven by ongoing restructuring programs and DSO related severance payouts Special Items (EBITDA) -2.0 to -1.0 Core Financial Result with increased interest payments Core Dep
Slide 18: Appendix: Q2
///////////// Health for all, Hunger for none APPENDIX Q2 2024
Slide 19: Our Transformation: Scaling at High Speed
Our Transformation: Scaling at High Speed # Customer and Product Teams: By end of 2024, every part of Bayer will have started Dec ’23: < 50 April ’24: ~ 500 July ’24: ~ 900 working in the new operating model. Crop Science Pharmaceuticals Consumer Health Holistic architecture for all three divisions
Slide 20: Q2 2024: Core Net Income and Free Cash Flow
Q2 2024: Core Net Income and Free Cash Flow [€ bn] Q2 2023 Q2 2024 [€ bn] Q2 2023 Q2 2024 Net Sales 11.0 11.1 Reported EBITDA 2.3 1.7 EBITDA before special items 2.5 2.1 Tax payments -0.4 -0.4 Core depreciation -0.4 -0.4 Delta pensions -0.1 -0.2 1 Core EBIT 2.1 1.7 Gains/Losses Divestments 0.0 0.0 C
Slide 21: Crop Science Q2 2024 Key Drivers
Glyphosate and Soybean Volumes Offset Headwinds in Other Herbicides and Fungicides Crop Science Q2 2024 Key Drivers Corn S&T: higher price offset by lower volumes due to Sales by Strategic Business Entity LATAM phasing and decline in planted acreage €m ∆% cpa yoy Fungicides: adverse weather delays d
Slide 22: Pharmaceuticals Q2 2024 Key Drivers
Growth Dynamics of Launch Assets Partly Offset by Expected Headwinds on Xarelto and Adalat Pharmaceuticals Q2 2024 Key Drivers Sales by Key Products Xarelto: sales impacted by generic pressure, especially €m ∆% cpa yoy in Canada and Europe; lower US royalties 904 Eylea: growing in all regions, parti
Slide 23: Consumer Health Q2 2024 Key Drivers
Growth Driven by Innovation, Solid Demand and Normalized Supply, Partly Offset by Weak Allergy Season Consumer Health Q2 2024 Key Drivers Sales by Category €m ∆% cpa yoy Nutritionals: Mainly driven by EMEA and LATAM 356 +12% Nutritionals Dermatology: Growth mainly driven by contributions 374 +14% fr
Slide 24: Expect Lower Glyphosate Pricing to be Partially Offset by Volume
Expect Lower Glyphosate Pricing to be Partially Offset by Volume Recovery in 2024 Glyphosate Branded Glyphosate-Based Herbicide Sales Rapidly Normalized as Generic Reference Price Reverts to Historical Median $14 6 $12 5 $10 4 bn€ $/KG $8 3 $6 $3.80/Kg 2 $4 $2 1 $- 0 2019 2020 2021 2022 2023 2024F C
Slide 25: Q2 2024: Core EPS to EPS Bridge
Q2 2024: Core EPS to EPS Bridge in € 0.94 -0.75 2.04 -0.03 -0.45 -0.10 +0.33 Core EPS Depreciation & Amortization Special Items Special Items Tax Effect on EPS (total) Q2 2024 (on IP and PPE) (EBITDA) Financial Results/Taxes Adjustments Q2 2024 25 /// Bayer Q2 2024 Investor Call /// August 06, 2024
Slide 26: Q2 2024: Key Financial Measures by Division
Q2 2024: Key Financial Measures by Division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Sales 4,924 4,981 4,557 4,605 1,466 1,458 97 100 11,044 11,144 Sales by region: Europe / Middle East
Slide 27: Appendix: HY1
///////////// Health for all, Hunger for none APPENDIX HY1 2024
Slide 28: HY1 2024: Group Performance
HY1 2024: Group Performance HY1 2023 HY1 2024 ∆% yoy in €bn +1% cpa Currency headwind of €0.8bn Net Sales 25.4 24.9 (-2% rep) EBITDA 7.0 6.5 Lower Crop Science result partly (EBITDA Margin) -7% offset by less incentive provisions; (27.5%) (26.2%) currency headwind €0.3bn before special items Core EP
Slide 29: HY1 2024: Crop Science
HY1 2024: Global Corn Pricing Gains, Growth in Glyphosate and Soybean Volumes Temper Headwinds in Crop Protection Crop Science HY1 2024 Net Sales EBITDA Volume €m, before special items €m, ∆% yoy +1% EBITDA Margin before special items -1% cpa Price 13,275 (-3% rep) 12,888 -3% Glyphosate: -16% +13% c
Slide 30: HY1 2024: Crop Science Key Drivers
HY1 2024: Global Corn Pricing Gains, Growth in Glyphosate and Soybean Volumes Temper Headwinds in Crop Protection Crop Science HY1 2024 Key Drivers Corn S&T: strong pricing partially offset by area Sales by Strategic Business Entity reductions in NA and LATAM €m ∆% cpa yoy Herbicides excl. GLY: decl
Slide 31: HY1 2024: Pharmaceuticals
HY1 2024: Launch Products and Eylea More Than Offset Xarelto LoE Impact, Tight Cost Management Holds Up Margin Pharmaceuticals HY1 2024 Volume Net Sales1 EBITDA €m, ∆% yoy €m, before special items +2% EBITDA Margin before special items +4% cpa (0% rep) Price +2% +1% 8,964 -1.1% +1.0% 0.0%, 8,963 2,4
Slide 32: Pharmaceuticals HY1 2024 Key Drivers
Strong Performance of Launch Assets, Eylea and Radiology More Than Offset Headwinds on Xarelto and Adalat Pharmaceuticals HY1 2024 Key Drivers Sales by Key Products Xarelto: generic pressure in Canada and Europe; €m ∆% cpa yoy lower US royalties 1,830 Eylea: growth particularly driven by Canada and
Slide 33: HY1 2024: Consumer Health
HY1 2024: Solid Sales Growth, Acceleration Expected for HY2 Consumer Health HY1 2024 Volume Net Sales EBITDA -9% €m, ∆% yoy €m, before special items +2% cpa EBITDA Margin before special items (-5% rep) Price 3,039 2,890 +11% -10% 714 645 Currency -6% 23.5% 22.3% Portfolio -0% HY1’23 HY1’24 HY1’23 HY
Slide 34: Consumer Health HY1 2024 Key Drivers
Growth due to Solid Demand and Normalized Supply; Soft Cough & Cold and Allergy Season Weighing on Growth Consumer Health HY1 2024 Key Drivers Sales by Category €m ∆% cpa yoy Dermatology: Growth mainly driven by contributions from our Bepanthen brand family, Canesten and strong demand for our region
Slide 35: HY1 2024: Core EPS to EPS Bridge
HY1 2024: Core EPS to EPS Bridge in € 3.76 -1.48 -0.66 +0.54 2.00 -0.15 Core EPS Depreciation & Amortization Special Items Special Items Tax Effect on EPS (total) HY1 2024 (on IP and PPE) (EBITDA) Financial Results/Taxes Adjustments HY1 2024 35 /// Bayer Q2 2024 Investor Call /// August 06, 2024
Slide 36: HY1 2024: Key Financial Measures by Division
HY1 2024: Key Financial Measures by Division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 Sales 13,275 12,888 8,964 8,963 3,039 2,890 155 168 25,433 24,909 Sales by regi
Slide 37: Appendix: Innovation
///////////// Health for all, Hunger for none APPENDIX Innovation
Slide 38: Crop Science: Seed & Traits and Digital R&D Pipeline
Crop Science: Seed & Traits and Digital R&D Pipeline ~€21bn (Annual Update March 2024) PSP Phase I Phase II Phase III Phase IV PSP CORN SEED & TRAIT Corn Disease Shield - NA Corn LEP5 PRECEON Smart Corn - Breeding Corn HT5 2nd Generation Seed Density PRECEON Smart Corn – Biotech Trait2 ~€11bn Digita
Slide 39: Crop Science: Crop Protection R&D Pipeline
Crop Science: Crop Protection R&D Pipeline (Annual Update March 2024) ~€11bn PSP Phase I Phase II Phase III Phase IV Life Cycle Management 1 PSP New AI Development Non-Selective New Herbicide New Herbicide New Herbicide Glyphosate LCM HERBICIDES Selective New Herbicide ~€5bn Merlin Flexx / Adengo LC
Slide 40: Pharmaceuticals: R&D Developments
Pharmaceuticals: R&D Developments (since last update on April 30, 2024) Phase I Phase II Phase III Commercial Initiation of AB-1005 in Positive topline results of Parkinson’s Disease Nubeqa Phase III (REGENERATE-PD) ARANOTE Study (mHSPC) Discontinuation of Positive topline results of Runcaciguat Ker
Slide 41: Pharmaceuticals – Pipeline Overview
Pharmaceuticals – Pipeline Overview1 (as of July 31, 2024) Phase I Phase II Phase III HER2/mEGFR Inhibitor (BAY 2927088) Congestive Heart Failure rAAV Gene Therapy (AB-1002) Darolutamide (AR Inhibitor) Congestive Heart Failure (GenePHIT) Prostate Cancer (mHSPC) (ARANOTE) DGKzeta Inhibitor (BAY 29655
Slide 42: Major R&D Milestones Expected Until Mid-2025
Major R&D Milestones Expected Until Mid-2025 Phase I Phase II Phase III Submission / Approval Sema3A mAB: sGC Activator oral CKD: HER2/mEGFR Inhibitor in HER2/mEGFR Inhibitor in Primary compl. Phase I Start Phase IIb HER2mut NSCLC 1L: HER2mut NSCLC 2L: Start phase III First submission BRT-OpCT01 Pri
Slide 43: Nubeqa Continues to Show Strong Uptake
Nubeqa Continues to Show Strong Uptake With Gains in All Regions Global sales development (€m, cpa growth rates) US launch performance (monthly NBRx)1 +90% 1200 380 1000 283 800 258 201 232 600 400 Aug-22: 200 mHSPC approval 0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 US Ex-US Nubeqa continues to be t
Slide 44: Kerendia Demonstrates Continued Launch Uptake
Kerendia Demonstrates Continued Launch Uptake Global sales development (€m, cpa growth rates) US launch performance (monthly NBRx)1 10000 60,000 +73% 8000 50,000 40,000 115 6000 85 85 30,000 67 66 4000 20,000 2000 10,000 0 0 Feb 22 Feb 23 Feb 24 Mrz 22 Mrz 23 Mrz 24 Jul 22 Jul 23 Jan 22 Mai 22 Jun 2
Slide 45: Thank you
///////////// Health for all, Hunger for none Thank you