Bayer Ag · XETR:BAYN
Bayer — Investor Day (March 2024)
115 slides from Bayer's investor day presentation, Mar 5, 2024
Slide 1: Capital Markets Day 2024
///////////// Health for all, Hunger for none CAPITAL MARKETS DAY 2024 Bayer AG /// Capital Markets Day /// March 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
Slide 3: Index
Index CEO Consumer Financials Crop Science Pharmaceuticals Remarks Health 3 /// Bayer Capital Markets Day /// March 5, 2024
Slide 4: CEO Remarks – Bill Anderson
///////////// Health for all, Hunger for none CAPITAL MARKETS DAY 2024 BILL ANDERSON Chief Executive Officer
Slide 5: Bayer: A Global Leader in Health & Nutrition
Bayer: A Global Leader in Health & Nutrition 2019 13% Crop Science • #1 in Seed & Traits with Leading Crop Protection Portfolio Well Positioned 46% 43.5bn€ • >200bn€2 exp. Global Ag Input Market in Growing Markets & Related Adjacencies by 2030 41% to address Pharmaceuticals • Strong market positions
Slide 6: What I've found at Bayer
What I‘ve found at Bayer Strong FOUNDATION that can … but FOUR major challenges drive a prosperous future … that need to be addressed Importance of the Mission Pharma LoE, Pipeline Structure Science and Innovation Litigation Leading Positions in Crop and Consumer High Debt Rebuilding Pharma Business
Slide 7: Completed Our Strategic Review Based on Clear Criteria
Completed Our Strategic Review Based on Clear Criteria Crop Science Consumer Health New Operating Model Selected Key Criteria Separation Separation Value • Highly dependent on exit route • Sustainable savings and • Limited to none and market environment additional growth potential Creation Complexit
Slide 8: No Break-Up Now, Creating Future Optionality
No Break-Up Now, Creating Future Optionality Exhaustive review of all options for financial impact and feasibility Fixing the fundamental challenges of the company to gain flexibility Prioritizing implementation of Dynamic Shared Ownership to boost performance Committed to best outcome for each busi
Slide 9: Bayer Taking Decisive Action and Making Changes
Bayer Taking Decisive Action and Making Changes ACTION CHANGES Initiated operating model overhaul Proposed Supervisory Board refresh Proposed temporary minimum Proposed change to management dividend compensation Delivered adjusted guidance Changing guidance approach Strengthening accountability and
Slide 10: Addressing Our Challenges
Addressing Our Challenges • Capitalize on launch assets and base business PHARMA LoE, • Drive productivity gains PIPELINE STRUCTURE • Rapidly rebuild early- and mid-stage pipeline LITIGATION HIGH DEBT BUREAUCRACY 10 /// Bayer Capital Markets Day /// March 5, 2024
Slide 11: Addressing Our Challenges
Addressing Our Challenges PHARMA LoE, PIPELINE STRUCTURE • Top of the agenda LITIGATION • Taking a fresh look with different approaches • Focusing on best interest of all stakeholders HIGH DEBT BUREAUCRACY 11 /// Bayer Capital Markets Day /// March 5, 2024
Slide 12: Addressing Our Challenges
Addressing Our Challenges PHARMA LoE, PIPELINE STRUCTURE LITIGATION • Improve operational performance HIGH DEBT • Cash conversion measures • Change dividend policy BUREAUCRACY 12 /// Bayer Capital Markets Day /// March 5, 2024
Slide 13: Addressing Our Challenges
Addressing Our Challenges PHARMA LoE, PIPELINE STRUCTURE LITIGATION HIGH DEBT • Implement Dynamic Shared Ownership BUREAUCRACY • Holistic customer- and product-centricity • Eliminate off-mission activities and processes 13 /// Bayer Capital Markets Day /// March 5, 2024
Slide 14: Our New Operating Model Yields Several Advantages
Our New Operating Model Yields Several Advantages Sustainable Cost GROWTH through GROWTH through EFFICIENCIES Customer Centricity Innovation Speed // Elimination of roles, // Self-managed customer- // Increased speed to market processes and activities and product teams with due to shorter innovation
Slide 15: Strong Momentum in Scale Up, with Numerous Initiatives Globally
EXAMPLARY Strong Momentum in Scale Up, with Numerous Initiatives Globally Customer and Product Teams < 50 at end of 2023 By end of 2024, we will have started in every part of Bayer working in the new operating model. ~ 300 in March 2024 North Europe, Asia-Pacific & Latin America Middle East & Africa
Slide 16: Achieved Our Revised Commitments in 2023; 2024 First in Three-Year Rejuvenation
Achieved Our Revised Commitments in 2023; 2024 First in a Three-Year Rejuvenation Period in €bn 2023 2024 as reported at constant FX1 Net Sales 47.6 -1% to +3% • Headwinds from Xarelto, China EBITDA (before special items) 11.7 -9% to -3% and glyphosate • Growth in Crop core business, Core EPS (in €)
Slide 17: Through 2026: Enhance Performance and Regain Flexibility
Through 2026: Enhance Performance and Regain Flexibility CROP PHARMA CONSUMER GROUP SCIENCE HEALTH Implement dynamic Outgrow market in Support topline resilience Grow above market shared ownership to core business during LoE’s of major products Deliver profitability at improve performance Improve pr
Slide 18: Health for All, Hunger for None.
//////////// Health for All, Hunger for None. Produce 50% More. Restore Nature. Scale Regenerative Ag. Treat the Untreatable. Cure Disease. Offer Hope. Help >1bn People to Live Healthier Lives With Most Trusted Self-Care Solutions. 18 /// Bayer Capital Markets Day /// March 5, 2024
Slide 19: Enhance Performance, Regain Flexibility
///////////// Health for all, Hunger for none ENHANCE PERFORMANCE REGAIN FLEXIBILITY
Slide 20: Financials – Strengthen Cash Flow, Reduce Debt
///////////// Health for all, Hunger for none FINANCIALS Strengthen Cash Flow – Reduce Debt C A P I TA L M A R K E T S D AY 2 0 2 4 WOLFGANG NICKL Chief Financial Officer
Slide 21: Summary
Summary Revised 2023 outlook achieved; implementation of new operating model started Outlook for 2024 muted in terms of growth and profitability; first DSO savings included Clear focus on strengthening cash flow by improving cash generation Prioritization in capital allocation towards debt reduction
Slide 22: FY 2023: Achieved Revised Outlook
FY 2023: Achieved Revised Outlook FY 2023 Outlook FY 2023 Actuals incl. FX impact as reported in €bn Net Sales 46.8 - 47.8 47.6 EBITDA 11.1 - 11.6 11.7 (before special items) Core EPS (in €) 6.20 - 6.40 6.39 Free Cash Flow1 ~ 0 1.3 Net Fin. Debt ~ 36 34.5 1Litigation related net payouts (settleme
Slide 23: Resilient Performance in Volatile Environment; Litigation Impacting Cash Flow
Resilient Performance in a Volatile Macroeconomic Environment; Litigation Impacting Cash Flow Net Sales (€bn), as rep1 50.7 47.6 43.5 41.4 44.1 • Solid growth across the portfolio, 2022 driven by CAGR ~+2% glyphosate pricing outperformance Incl. glyphosate • Material foreign exchange effects on topl
Slide 24: Cash Flow Mainly Used for Dividend and Litigation Related Payouts
Cash Flow Mainly Used for Dividend and Litigation Related Payouts Net Financial Debt Development in €bn, as reported Cash Generation Cash Usage 2019-2023 2019-2023 35.7 -24.4 3.4 34.5 11.7 13.0 -10.9 5.9 NFD Free Cash Flow Divestments Acquisitions Litigation Dividend FX, Leasing NFD 31.12.2018 befor
Slide 25: Outlook 2024: Key Drivers
Outlook 2024: Key Drivers EXPECTED TAILWINDS Crop Science Core business to grow +1% to +4% cpa Continued strong momentum of Nubeqa and Kerendia, strengthened US presence Continued broad-based growth anticipated for Consumer Health Ongoing cost optimization, first DSO related organizational cost savi
Slide 26: 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 -4% to 0% ~-2%pts Pharmaceuticals EBITDA Margin 28.7% 26% to 29% ~-2%pts (be
Slide 27: Outlook 2024: Improved Free Cash Flow Despite Lower Profitability
Outlook 2024: Improved Free Cash Flow Despite Lower Profitability 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 ~-3%pts (before special items) -9% to -3% Core EPS (in €) 6.39 5.10 to 5.50 -0.10 to -0.20 Free Cash Flow 1.3 2
Slide 28: Outlook 2024: Muted Outlook for Core EPS
Outlook 2024: Muted Outlook for Core EPS Core Earnings per Share Development (in €) illustrative Savings, incl. DSO Operating Xarelto 6.39 Business Glyphosate 5.10 – 5.50 Merit/Inflation/ Incentives Core Core Tax Financial Result Core EPS Core EPS 2023 2024e1 1Reflects our 2024 guidance at constant
Slide 29: Through 2026: Enhance Performance and Regain Flexibility
Through 2026: Enhance Performance and Regain Flexibility CROP PHARMA CONSUMER GROUP SCIENCE HEALTH Implement dynamic Outgrow market in Support topline resilience Grow above market shared ownership to core business during LoE’s of major products Deliver profitability at improve performance Improve pr
Slide 30: Our New Operating Model is Key Enabler to Achieve our Ambitions
Our New Operating Model is Key Enabler to Achieve our Ambitions Sustainable Cost Growth through Growth through Efficiencies Customer Centricity Innovation Speed Materializing benefits Materializing benefits Illustrative Illustrative Materializing benefits Illustrative Time horizon Time horizon Time
Slide 31: We Improve Cash Generation and Manage Adverse Impacts
We Improve Cash Generation and Manage Adverse Impacts Driving Operational Performance and Strengthen Cash Flow Growth Drive profitable growth beyond Xarelto LoE Sales Focused spend and Growth Margin realization of savings Balance Sheet Working Capital Optimization Efficiency Focused CAPEX spend Dyna
Slide 32: Improving Working Capital Management and Prioritization of CapEx
We Have a Clear Focus on Improving Working Capital Management and Prioritization of Capital Expenditures WoC Optimization Active Monitoring & Steering in €bn Close tracking and management of Trade WoC 27.6 26.9 Working Capital to Sales Ratio 24.6 24.9 24.5 development Trade WoC1 Improvement initiati
Slide 33: Prioritize Capital Allocation to Achieve a Step Down in Debt
We Will Prioritize our Capital Allocation to Achieve a Step Down in Debt Organic Investments Cash Generation Cash Usage (before Free Cash Flow) Minimum Dividend Ongoing and New Launches FREE CASH FLOW DEBT REDUCTION Focused R&D Investments Improve Towards Single A Category Rating Focused CAPEX Spend
Slide 34: Summary
Summary Revised 2023 outlook achieved; implementation of new operating model started Outlook for 2024 muted in terms of growth and profitability; first DSO savings included Clear focus on strengthening cash flow by improving cash generation Prioritization in capital allocation towards debt reduction
Slide 35: Appendix: Outlook
///////////// Health for all, Hunger for none APPENDIX Outlook 2024
Slide 36: Outlook 2024: Modeling Considerations
Outlook 2024: Modeling Considerations 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 affected by increased interest payments Core Depreci
Slide 37: Outlook 2024: Crop Science
Outlook 2024: Crop Science Core Business Expected to Outpace the Market 2023 In €bn 2024 at Key Assumptions & Drivers constant FX1 Net Sales 23.2 -1 to 3% cpa2 Industry-leading seed germplasm refresh and volume recovery in crop protection Core 20.3 1 to 4% cpa drive sales growth; U.S. planted acreag
Slide 38: Outlook 2024: Pharmaceuticals
Outlook 2024: Pharmaceuticals 2023 In €bn 2024 at Key Assumptions & Drivers constant FX1 Net Sales 18.1 -4% to 0% cpa2 • Robust base business with varying dynamics of individual franchises • China facing ongoing headwinds, particularly related to VBP 4.1 Double-digit % Ongoing pricing pressure, gene
Slide 39: Outlook 2024: Consumer Health
Outlook 2024: Consumer Health 2023 InIn€bn 2024 at 2024e Key Assumptions & Drivers 2023 €bn constant FX1 at constant FX1 Net Sales 6.0 +3% to +6% cpa2 Continued broad-based growth across regions and categories Innovation, pricing and volume increase will equally contribute to growth Uncertain Econom
Slide 40: Appendix: FY 23
///////////// Health for all, Hunger for none APPENDIX FY 2023
Slide 41: FY 2023: Group KPIs
FY 2023: Group KPIs NET SALES EBITDA CORE EPS FREE CASH FLOW in €m, ∆% yoy in €m, before special items in €, Cont. Operations in €m -1% cpa (-6% rep) -13% -20% -58% 50,739 47,637 13,513 7.94 3,111 11,706 6.39 26.6% 24.6% 1,311 FY'22 FY'23 FY'22 FY'23 FY'22 FY'23 FY'22 FY'23 Currency Mainly lower Dri
Slide 42: FY 2023: Core Net Income and Free Cash Flow
FY 2023: Core Net Income and Free Cash Flow [€ bn] FY 2022 FY 2023 [€ bn] FY 2022 FY 2023 Net Sales 50.7 47.6 Reported EBITDA 13.5 10.6 EBITDA before special items 13.5 11.7 Tax payments -2.0 -1.3 Core depreciation -1.6 -1.6 Delta pensions -0.1 -0.2 Core EBIT 11.9 10.1 Gains/Losses Div. -1.7 -0.2 Co
Slide 43: Crop Science Core Business +7%; Outpaces Market With Pricing
Crop Science Core Business +7%; Outpaces Market With Pricing Crop Science FY 2023 Net Sales Core Business EBITDA Volume Glyphosate €m, ∆% yoy €m, before special items +1% Currency & Portfolio EBITDA Margin before special items -4% cpa Price (-8% rep) 6,867 -5% 25,169 -27% 23,270 5,038 Currency -2% 2
Slide 44: Strong Pricing from Innovation in Core Business Offsets Glyphosate
Strong Pricing from Innovation in the Core Business Partially Compensates for Glyphosate Normalization Crop Science FY 2023 Key Drivers Corn S&T: strong price increases across FY 2023 Sales by Strategic Business Entity all regions, higher volumes in NA and APAC €m ∆% cpa yoy Fungicides: exceptional
Slide 45: Launch Products and Eylea Largely Make up for Xarelto Decline
Launch Products and Eylea Largely Make up for Xarelto Decline and China Weakness Pharmaceuticals FY 2023 Volume Net Sales1 EBITDA +1% €m, ∆% yoy €m, before special items EBITDA Margin before special items -0% cpa Price (-6% rep) 5,873 -12% -1% 5,189 19,252 +3.2% -1.4% +0.9% -3.0%, Currency incl. 18,
Slide 46: Launch Assets Continue Strong Growth Momentum
Launch Assets Continue Strong Growth Momentum, Eylea and Radiology Playing Out Market Leadership Pharmaceuticals FY 2023 Key Drivers FY 2023 Sales by Key Products Xarelto: decline caused by competitive and pricing €m ∆% cpa yoy pressure, especially in China and UK; lower US royalties 4,081 Eylea: co
Slide 47: Continued Broad-Based Sales Growth and Significant Margin Expansion
Continued Broad-Based Sales Growth and Significant Margin Expansion Consumer Health FY 2023 Volume Net Sales EBITDA -3% €m, ∆% yoy €m, before special items EBITDA Margin before special items +6% cpa Price (-1% rep) +3% 6,080 6,027 1,367 1,411 +9% Currency -7% 22.5% 23.4% Portfolio -0% FY’22 FY’23 FY
Slide 48: Innovation in Dermatology and Strong, Balanced Remaining Portfolio
Innovation in Dermatology and Strong, Balanced Remaining Portfolio, Driving Growth Consumer Health FY 2023 Key Drivers FY 2023 Sales by Category €m ∆% cpa yoy Nutritionals: Sales were on previous year level, especially due to temporarily decline of birth rates in China and a softer market environmen
Slide 49: FY 2023: Core EPS to EPS Bridge
FY 2023: Core EPS to EPS Bridge in € 6.39 -8.55 thereof impairment Crop Science -6.81 -1.09 -2.99 -0.37 +0.63 Core EPS Depreciation & Amortization Special Items Special Items Tax Effect on EPS (total) FY 2023 (on IP and PPE) (EBITDA) Financial Results/Taxes Adjustments FY 2023 49 /// Bayer Capital M
Slide 50: FY 2023: Key Financial Measures by Division
FY 2023: Key Financial Measures by Division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 Sales 25,169 23,270 19,252 18,081 6,080 6,027 238 259 50,739 47,637 Sales by reg
Slide 51: Scaling Regenerative Agriculture – Crop Science
///////////// Health for all, Hunger for none BAYER Scaling Regenerative Agriculture Capital Markets Day 2024 RODRIGO SANTOS President, Bayer Crop Science
Slide 52: Bayer Crop Science Strategic Agenda
Bayer Crop Science Strategic Agenda SCALE DRIVE OPERATIONAL DELIVER WORLD REGENERATIVE AG EXCELLENCE CLASS INNOVATION 01 02 03 Direct Seeded Rice Field Seed Chipper- Ankeny, IA Bayer Protected Culture Seed Design Center - Petrolina, Brazil // INDUSTRY LEADING FINANCIAL PERFORMANCE // 52 /// Bayer Ca
Slide 53: Our Vision Aspires to Address Global Challenges at Scale
Our Vision Aspires to Address Global Challenges at Scale Produce 50% More. Restore Nature. Scale Regenerative Ag. Required increase by 2050 To meet our 2030 sustainability commitments To expand our footprint to reach our to feed the world (FAO data) 400M acre ambition by 2035 Sustainability 30% 30%
Slide 54: Ag Input Market Growing Over Two Percent to Meet Demand
Ag Input Market Growing Over Two Percent to Meet Demand Potential to Double our Accessible Market Through Investments in Innovation in Adjacent Spaces >100bn¹ >100bn¹EUR EUR >200bn1 EUR 2023 2023Global GlobalAgAgInput InputMarket Market 2030 Global Ag Input Market & Related Adjacencies Crop Seed and
Slide 55: The Established Leader in Crop Science
The Established Leader in Crop Science Industry-Leader Outpacing Market and Peers in Core Business in 2023 GLOBAL LEADER IN AG INPUTS OUT-PACING MARKET & PEERS3 with Core Business Sales Growth in 2023 Sales / cEBITDA1 (€bn) / FY 2023 FY 2023 cpa sales growth Bayer CS 23.3 5.0 7% 2% 1% Syngenta AG 2
Slide 56: Growers Worldwide Recognize the Value We Deliver
Growers Worldwide Recognize the Value We Deliver #1 in Seed & Traits with Leading Crop Protection Portfolio Market Bayer Crop Science 2023 Sales (€23.3bn) Position S A L E S B Y S T R AT E G I C B U S I N E S S E N T I T Y SALES BY REGION #1 Corn Seed & Traits In €bn 2023 cpa% growth 2023 Core1 Busi
Slide 57: Pricing to Innovation in Our Core Business Powers Sales CAGR
Pricing to Innovation in Our Core Business Powers Sales CAGR Industry Leading EBITDA Despite Significant Cost Inflation Bayer Crop Science Sales Bayer 1 BayerCrop CropScience ScienceEBITDA EBITDA1 Sales (€bn) / core cpa CAGR % EBITDA before special items (€bn) / margin% Core EBITDA1 cpa% 2.0% -0.4%
Slide 58: Driving Operational Excellence to Outgrow the Market in Core Business
Driving Operational Excellence to Outgrow the Market in the Core Business and Improve Profitability and Cash Generation SALES • Accelerated innovation and enablement of system solutions • Optimized service to customers • Reinvestment in growth opportunities Sales MARGIN • Implement DSO driven organi
Slide 59: DSO Anchored on Customer and Moving to Scale in 2024
DSO Anchored on Customer and Moving to Scale in 2024 Dynamic Shared Ownership Unlocks New Opportunity for Competitive Differentiation DSO Operating Concept Anchored on Farmer >450 Customer Mission Teams Implemented by End of 2024 Farmer at the Center Anchored by on the ground cross-functional custom
Slide 60: Extending Our Leadership Position Through Our Pipeline
Extending Our Leadership Position Through Our Pipeline >€32bn Peak Sales Potential; Ten Blockbusters Expected to Launch in Next Decade Bayer Crop Science R&D Pipeline Expected Launch Dates for Blockbuster Products See appendix for comprehensive pipeline 2024 2027 2030+ ~€6bn Corn S&T ~€11bn >50% PSP
Slide 61: Annual Portfolio Refresh Provides Foundation for Growth
Annual Portfolio Refresh Provides Foundation for Growth Pricing and Sales Mix Opportunity Across Our Leading Global Footprint Enhanced by Digital Assets ANNUAL SEED CROP PROTECTION GERMPLASM REFRESH LIFE-CYCLE MANAGEMENT ~400-500 ~90-100 new seed hybrids & varieties new formulations to deployed annu
Slide 62: Blockbuster Technologies for System Solutions Advancing
Blockbuster Technologies for System Solutions Advancing Ten Blockbuster Product Launches Anticipated in Next Decade; Five Advanced in 2023 New Herbicide Molecule HT4 IP3 First new mode of action in post emergence weed control in 30 years 4th Gen Soybean 3rd Gen Soybean Herbicide Tolerance Insect Pro
Slide 63: 2024 Guidance and our Mid-Term Ambition Through 2026
2024 Guidance and our Mid-Term Ambition Through 2026 2023 2024e Mid-Term In €bn at constant FX1 Net Sales 23.2 -1% to 3%2 Outgrow market in Core business4: Annual industry-leading seed germplasm refresh Core 20.3 1 to 4% Crop protection life cycle management Glyphosate 2.9 -12% to -8%3 Crop protecti
Slide 64: Delivering Regenerative Ag Solutions to Outperform the Market
Delivering Regenerative Ag Solutions to Outperform the Market Vision to effectively scale regenerative ag and expand market opportunity Established leader growing core business across all regions Renewed operational excellence fueled by dynamic shared ownership Industry leading pipeline to widen com
Slide 65: Appendix
Appendix
Slide 66: 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 67: 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 68: Sustainability Report / Innovation Summit
Sustainability Report Innovation Summit June 2023 68 /// Bayer Capital Markets Day /// March 5, 2024
Slide 69: Preparing for Long-Term Growth While Managing LoE Transition – Pharmaceuticals
/////////// Health for all, Hunger for none BAYER P R E PA R I N G F O R L O N G - T E R M GROWTH WHILE MANAGING LOE TRANSITION Capital Markets Day 2024 S T E FA N O E L R I C H President Bayer Pharmaceuticals
Slide 70: Bayer Pharma's Strategic Agenda
Bayer Pharma’s Strategic Agenda RENEW GROW PIPELINE LEVERAGE NEW TOPLINE VALUE OPERATING MODEL Drive continued sales Progress late-stage pipeline Diligently allocate momentum and realize resources towards areas blockbuster potential of Nubeqa, Replenish and advance of high impact and value Kerendia
Slide 71: Bayer Pharma Sales Diversified Across Therapeutic Areas and Geographies
Bayer Pharma Sales Diversified Across Therapeutic Areas and Geographies SALES BY THERAPEUTIC AREAS GEOGRAPHIC FOOTPRINT NORTH AMERICA 12% Cardiovascular1 EUROPE, MIDDLE Women’s Health1 33% EAST & AFRICA CHINA 18% Radiology1 FY2023 ~26% ~13% ~40% Oncology €18.1bn Ophthalmology1 11% ~16% Others 16% ~5
Slide 72: Leading Franchises Providing Sales Growth and Resilience
Leading Franchises Providing Sales Growth and Resilience, Margin Profile Impacted by LoE Transition and Strategy Execution Pharmaceuticals Sales & Profitability Key Drivers NET SALES (€bn) / cpa CAGR % Growing sales contributions from recently launched Nubeqa yoy and Kerendia cpa% +5.6 -1.5% +7.4% +
Slide 73: Launch Assets and Late-Stage Pipeline Expected to Offset LoEs
Launch Assets and Late-Stage Pipeline Expected to Largely Offset LoEs on Stable Base Business illustrative 2023 2024-2026 (cpa) >2027 €18.1bn Elinzanetant, Acoramidis and Asundexian Stroke Elinzanetant, €1.1bn Numerous Acoramidis, Growth: Launch products pipeline assets Asundexian Stroke to potentia
Slide 74: Key Parts of Base Business Benefit from Strong Market Positions
Despite its Maturity, Key Parts of Our Base Business Are Benefitting from Strong Market Positions and Supportive Trends Bayer Pharma’s Base Business Short- and Mid-term Drivers Net Sales 2023 Radiology: €9.6bn Building on leading positions in contrast media and fluid delivery systems to further expa
Slide 75: Eylea Positioned to Continue Market Leadership in a Growing Market
With Its Unparalleled Clinical Profile, Eylea Positioned to Continue Market Leadership in a Growing Market Global Retinal Disease Landscape Position to Sustain Market Leadership with Eylea 8 mg Retinal market1 Growing ageing population Eylea 8 mg: Potential to establish Standard Rising prevalence th
Slide 76: Xarelto to Face Genericization in the Next Three Years Globally
Xarelto to Face Genericization in the Next Three Years Globally Xarelto’s main patent expirations Historic Genericization Patterns of Small Molecules Prior cardiovascular LoE benchmark5 Countries % of Total Compound Once-daily Xarelto patent patent 100% Standard Units Sales1 expiry expiry 80% China
Slide 77: Nubeqa Set for Continued Growth in Prostate Cancer
Nubeqa Set for Continued Growth in Prostate Cancer Driven by Market Penetration and Label Expansion Short-term Mid- and Long-term 3 2024 2027 2028 ARAMIS ARASENS ARANOTE ARASTEP DaSL-HiCap (ARASEC)4 (ARAMON)4 nmCRPC mHSPC BCR (Neo-)Adjuvant Phase III (nonmetastatic) (nonmetastatic) program1 Drug tre
Slide 78: Kerendia With Potential to Become Foundational Treatment
Kerendia With Potential to Become Foundational Treatment for Broad Groups of Patients with Kidney Disease or Heart Failure Chronic Kidney Disease Heart Failure Phase III program1 Phase III program1 T2D FIDELIO- FIGARO- T1D Non-diabetic FINEARTS-HF CONFIRMATION-HF REDEFINE-HF FINALITY-HF ~ 700m ~ 60m
Slide 79: Asundexian is Targeting a High Unmet Need in Secondary Stroke Prevention
Asundexian is Targeting a High Unmet Need in Secondary Stroke Prevention Unmet Need Clinical Rationale and Status of Asundexian Rationale ~1 in 41 ▪ Genetic correlation between FXIa deficiency and risk of stroke people have a stroke ▪ Asundexian: once-daily FXIa inhibitor with proven clinical in the
Slide 80: Acoramidis with Competitive Clinical Profile to Treat ATTR-CM
Acoramidis1 with Competitive Clinical Profile to Treat ATTR-CM, Complementing Our CVD Franchise in Europe Unmet Need Profile and Deal Rationale of Acoramidis Profile ATTR-CM Oral TTR stabilizer for patients with ATTR-CM Transthyretin amyloidosis cardiomyopathy, a progressive Pivotal Phase III study
Slide 81: Elinzanetant Offers a Differentiated Clinical Profile for Menopause Symptoms
Elinzanetant Offers a Differentiated Clinical Profile to Treat Symptoms Associated With Menopause Differentiated Clinical Profile Phase III Data Elinzanetant Characteristics Focus: Efficacy Focus: Safety OASIS 1 OASIS 2 OASIS 3 VMS: 26 Week VMS: 26 Week VMS: 52 Week NK-1R Reduced sleep disturbance,
Slide 82: Elinzanetant Targeted to Enter Large and Underserved Market in 2025
Elinzanetant Targeted to Enter Large and Underserved Market in 2025 Market Opportunity Bayer Global Leader in Women’s Health4 Unmet need Women who experience1: Hot flashes: ~4 in 5 2/3 ~€3bn >60m 100.000 Sleep disturbance: ~ 1.3m of women not choosing / not net sales patients served OB/Gyn reached w
Slide 83: New Innovation Model to Rapidly Rebuild Pipeline
New Innovation Model to Rapidly Rebuild Pipeline High Level of Focus, Quality and Productivity Focus Quality Capabilities Productivity Rigorous application Biotech-like R&D Shift to value creation, Narrowed research of selection criteria have operating system with product-centric operating focus fro
Slide 84: Focus: Zeroing in on High Unmet Need With Great Value Potential
Focus: Zeroing in on High Unmet Need With Great Value Potential Four Therapeutic Areas in R&D Research focus in four areas Focus Quality Oncology Cardiovascular+1 Capabilities Productivity Neurology & Immunology Rare Diseases 1 Including Precision Cardiovascular, Nephrology & Acute Care 84 /// Bayer
Slide 85: Quality: Pursuing Leading Innovation Across all Focus Areas
Quality: Pursuing Leading Innovation Across all Focus Areas Revised Target-Product-Profile of Our Assets Prioritization of assets based on following selection criteria: Focus Quality Value & Feasibility & Leading Differentiation Risk capabilities Capabilities Productivity Shift to breakthrough innov
Slide 86: Capabilities: Established Toolbox of Leading Modalities
Capabilities: Established Toolbox of Leading Modalities Access to Leading Therapeutic Technology Platforms Through Acquisitions and Collaborations Innovation System Therapeutic Modality Platforms Focus Quality Strong SMOL capabilities further advanced through Internal chemoproteomics platform innova
Slide 87: Productivity: Reaching Higher, Sustainable Level of Output
Productivity: Reaching Higher, Sustainable Level of Output Achieve More and Better Solutions for Patients in a Time- and Cost-efficient Manner Align target-disease link with unmet need and optimal therapeutic modality Early de-risking of assets by strengthening relevant capabilities (e.g. human Focu
Slide 88: Replenishment of Early Pipeline in Full Swing
Replenishment of Early Pipeline in Full Swing; Numerous First-In- Class Pipeline Candidates to Potentially Transition into Phase II/III Rejuvenate mid- / late-stage Feeding from pipeline with several research into phase I high-value assets Advancing higher number of INDs # Pipeline assets1 Actual /
Slide 89: Leveraging DSO to Enhance Productivity and Speed While Managing LoE Transition
Leveraging DSO to Enhance Productivity and Speed While Managing LoE Transition SALES Launch products should largely balance LoE’s near- and mid-term - business to return to growth thereafter Sales MARGIN Drive productivity gains across whole value chain to support margins amid continued growth inves
Slide 90: DSO Will Drive Speed and Productivity Enhancing Innovation and Growth
DSO Will Drive Speed and Productivity Enhancing Innovation and Growth New Operating Model Benefits FROM: Traditional hierarchic, org focus… Organization revolves around customers Customer centricity and products instead of functions Product fit set up Faster decision-making Teams to utilize most app
Slide 91: First Successes of Frontrunner Teams Demonstrate Huge Potential
First Successes of Frontrunner Teams Demonstrate Huge Potential Across the Value Chain Product Supply Inventory Management US Commercial Team Set-up of cross-functional team to redefine collaboration Broke down franchise and functional silos with external suppliers to create customer and product squ
Slide 92: 2024 Guidance and our Mid-Term Ambition Through 2026
2024 Guidance and our Mid-Term Ambition Through 2026 2023 2024e Mid-Term at constant FX1 Support topline resilience during LoE’s of major products: Drive further launch uptake of Nubeqa and Kerendia Net Sales €18.1bn -4% to 0%2 Launch of Eylea 8mg, Elinzanetant and Acoramidis Maximize the full comme
Slide 93: Preparing for Long-term Growth While Managing LoE Transition
Preparing for Long-term Growth While Managing LoE Transition Three strategic priorities: Renew topline – grow pipeline value – leverage new operating model Launch products should largely balance LoE’s near- and mid-term, business expected to return to topline growth thereafter. Our advanced R&D capa
Slide 94: Appendix
APPENDIX 01 94 /// Bayer Capital Markets Day /// March 5, 2024
Slide 95: Pharmaceuticals: R&D Developments since December 19, 2023
Pharmaceuticals: R&D Developments (since last update on December 19, 2023) Phase I Phase II Phase III Commercial Initiation of VVD STAT3 Initiation of Anti-a2AP (Acute Approval of Aflibercept 8mg Inhibitor Ischemic Stroke; Pulmonary DME and nAMD in EU and Embolism (SIRIUS)) Japan Discontinuation of
Slide 96: Pharmaceuticals – Pipeline Overview (as of Feb 20, 2024)
Pharmaceuticals – Pipeline Overview1 (as of Feb 20, 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 296550
Slide 97: Major R&D Milestones Expected in 2024
Major R&D Milestones Expected in 2024 Phase I Phase II Phase III Submission / Approval sGC Activator oral CKD: Darolutamide/ADT mHSPC: PSMA SMOL-TAC: Start Phase I Start Phase IIb Primary compl. phase III (ARANOTE) Bemdaneprocel PD: HER2/mEGFR Inhibitor: SOS1 Inh: Start Phase I Start phase III Start
Slide 98: Numerous First-In-Class Candidates to Potentially Transition Into Mid- And Late-Stage
Numerous First-In-Class Pipeline Candidates to Potentially Transition Into Mid- And Late-Stage Soon Selected Assets with Expected Upcoming Phase Transition Potential Launch Program (Indication) Current Phase between 2028-2032 sGC Activator Oral FIC/BIC Phase I (Chronic Kidney Disease) Cardiovascular
Slide 99: Abbreviations (1/2)
Abbreviations (1/2) AE Adverse events EU European Union AI Artificial intelligence EU5 France, Germany, Italy, Spain, United Kingdom AAV Adeno-associated virus Excl. Excluding ATTR-CM Transthyretin amyloidosis cardiomyopathy FDA U.S. Food and drug administration BCR Biochemical recurrence FIC First-
Slide 100: Abbreviations (2/2)
Abbreviations (2/2) m million T1D Type 1diabetes mellitus mg milligram T2D Type 2 diabetes mellitus mHSPC Metastatic hormone sensitive prostate cancer TIA Transient ischemic attack nAMD Neovascular age-related macular degeneration TTR Transthyretin NBRx New-to-brand prescriptions Tx Therapeutics nmC
Slide 101: Driving Sustainable Industry Leading Performance – Consumer Health
BAYER Driving Sustainable Industry Leading Performance Capital Markets Day 2024 HEIKO SCHIPPER President of the Consumer Health Division
Slide 102: The Consumer Health Market Continues to Remain Attractive
The Consumer Health Market Continues to Remain Attractive Category dynamics to settle again on a steady and attractive mid-single digit growth percentage INDUSTRY GROWTH OUTLOOK INDUSTRY GROWTH DRIVERS 3-5% Self-Care focus Healthcare systems overstretched Digital ecosystems & personalization CAGR CH
Slide 103: A Leading Player With a Well-Balanced Core Consumer Health Portfolio
A Leading Player With a Well-Balanced Core Consumer Health Portfolio C AT E G O R Y P O R T F O L I O GEOGRAPHIC FOOTPRINT NORTH AMERICA 3% Nutritionals 12% 23% EUROPE, MIDDLE Dermatology EAST & AFRICA Digestive Health ~38% 12% 2023 ~36% Allergy €6.0bn Pain ~13% 11% 24% ~13% Cough & Cold Cardiovascu
Slide 104: Iconic Brands With Leading Market Positions
Iconic Brands With Leading Market Positions #1 Cardio #1 Wound Care #2 Immunity #1 Healthy Baby #1 Women's Intimate Health #2 Heartburn EMEA #2 Allergy NA #2 Digestive Health EMEA #2 Constipation US #1 Nasal Cold US #1 Energy #1 Multivitamins NA Source: Market 360, MAT October 2023, Value, SAM - Str
Slide 105: Consistent Track Record in Delivering Profitable Growth and Cash
Consistent Track Record in Delivering Profitable Growth and Cash GROWTH ACCELERATED CONSTANT MARGIN EXPANSION IMPROVED CASH CONVERSION ABOVE MARKET DESPITE INFLATION DRIVEN BY LOWER WSR NET SALES €bn / GROW TH % 1 EBITDA 2 €bn / AS % OF NET SALES W ORKING CAPITAL AS % OF NET SALES 3 Net Sales 5.5 5.
Slide 106: A Clear Game Plan to Sustain Outperformance
A Clear Game Plan to Sustain Outperformance Help over 1 billion people to live healthier lives with most trusted // VISION self-care solutions // AMBITION Grow our brands ahead of market, achieve industry competitive EBITDA Winning Portfolio in attractive categories and geographies // WHERE TO PLAY
Slide 107: Growing our Brands and Innovating Across Four Growth Drivers
Growing our Brands and Innovating Across Four Growth Drivers Core Business Innovation Geographic Digital commerce on unmet needs expansion & access & health platforms Household penetration Rx-to-OTC Switch Brand expansion eCommerce Trial and awareness Holistic gut health India, ASEAN Digital Diagnos
Slide 108: Industry Leading Commercial Capabilities
Industry Leading Commercial Capabilities Creative Full funnel Leading eCommerce Customer and excellence precision marketing capabilities HCP centric mindset Best-in-class creativity Personalized Strategic acquisitions Strategic customer consumer experience in eCommerce partnerships in key markets To
Slide 109: Agile and Focused Organization with Dynamic Shared Ownership
Agile and Focused Organization with Dynamic Shared Ownership FROM TO Consumer & Customer Value creation through Functional Orientation Centric Teams speed & simplification ASEAN Dermatology & Allergy Impact Senior Management Walmart US Product Supply Commercial Marketing … Amazon Category Team Net S
Slide 110: Consumer Health as a Force for Good – and Growth
Consumer Health as a Force for Good – and Growth Expand Path to Access to Climate Everyday Neutrality Health with improved access reduction achieved to self-care in underserved across operations communities 2023 since 2019 Target: 100M in 2030 Target: climate neutral in 2030 12% of net sales from lo
Slide 111: A Sustainable Value Creation Model, Accelerated by DSO
A Sustainable Value Creation Model, Accelerated by DSO GROWTH Drive above-market growth focusing on attractive categories, markets, channels, and superior execution Sales Growth MARGIN Continuously improve margin through scale effects and continuous efficiency programs Dynamic Shared Ownership CASH
Slide 112: Mid-term Outlook Anticipates Above Market Sales Growth
Mid-term Outlook Anticipates Above Market Sales Growth Disciplined Execution of New Operating Model to Improve Profitability and Operating Cash Flows 2023 2024e Mid-Term at constant FX1 Sustainable Growth above market Investment for growth in attractive categories & geographies Net Sales €6.0bn +3%
Slide 113: Driving Sustainable Peer Outperformance in Consumer Health
Driving Sustainable Peer Outperformance in Consumer Health Further build iconic brands through innovation and commercial excellence Consistent track record of delivering growth, margin and cash expansion A Game Plan to sustain outperformance, industry leading capabilities Agile and focused organizat
Slide 114: Driving Sustainable Industry Leading Performance in Consumer Health
DRIVING SUSTAINABLE INDUSTRY LEADING PERFORMANCE I N C O N S U M E R H E A LT H 114 /// Bayer Capital Markets Day /// March 5, 2024
Slide 115: Capital Markets Day 2024
///////////// Health for all, Hunger for none CAPITAL MARKETS DAY 2024 Bayer AG /// Capital Markets Day /// March 2024