Slide 1: Q3 2024 Investor Call
///////////// Health for all, Hunger for none Q3 2024 Investor Call November 12, 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: Delivering Sales Growth, Earnings and Cash Flow Guidance
Delivering Sales Growth, Earnings and Cash Flow Guidance Sales Core Free 9M 2024 Growth EPS Cash Flow (cpa) BAYER GROUP +1% €4.00 -€0.2bn vs PY vs PY vs PY Crop Science Pharmaceuticals Consumer Health Sales Growth (cpa) -2% +4% +3% EBITDA Margin (before special items) 20.2% 26.9% 23.4% Growth in Pha
Slide 5: Advancing Our Top Strategic Priorities
Advancing Our Top Strategic Priorities Growth & Innovation: Litigation: • Pharma: Great momentum in renewing topline and • Glyphosate: rebuilding the pipeline Review on which case to take to SCOTUS; good momentum on activities out of courtroom • Crop Science: Successful introduction of Preceon (bree
Slide 6: Wolfgang Nickl, Chief Financial Officer
///////////// Health for all, Hunger for none WOLGANG NICKL Chief Financial Officer
Slide 7: Q3 2024: Group Performance
Q3 2024: Group Performance Q3 2023 Q3 2024 ∆% yoy in €bn +1% cpa Currency headwind of €0.4bn Net Sales 10.3 10.0 (-4% rep) EBITDA 1.7 1.3 Lower Pharmaceuticals and (EBITDA Margin) -26% Reconciliation results; (16.3%) (12.6%) currency headwind of €0.1bn before special items Lower cEBITDA partly compe
Slide 8: Q3 2024: Crop Science Headwinds in LATAM Offset Core Crop Protection Gains
Q3 2024: Headwinds in LATAM Offset Core Crop Protection Volume Gains; Glyphosate Volumes Normalized Crop Science Q3 2024 Net Sales EBITDA Volume €m, before special items €m, ∆% yoy -3% EBITDA Margin before special items -4% cpa Price 4,365 (-9% rep) +246% -0% 3,986 35 Glyphosate +0.9% Currency Core
Slide 9: Q3 2024: Strong Growth of Launch Assets Offsetting Xarelto Headwinds
Q3 2024: Strong Growth of Launch Assets Offsetting Rising Xarelto Headwinds Pharmaceuticals Q3 2024 Volume Net Sales1 EBITDA €m, ∆% yoy €m, before special items +0% EBITDA Margin before special items +2% cpa Price (-1% rep) +2% -23% 4,538 1,438 4,510 +0.5% 1,102 Currency +5.6% -5.3% +1.5% -3.0% -3%
Slide 10: Q3 2024: Growth Across All Categories, While Market Slows Down
Q3 2024: Growth Across All Categories, While Market Slows Down Consumer Health Q3 2024 Volume Net Sales EBITDA +1% €m, ∆% yoy €m, before special items +6% cpa EBITDA Margin before special items (0% rep) Price 1,410 1,413 +15% +5% 313 360 Currency -6% 22.2% 25.5% Portfolio 0% Q3’23 Q3’24 Q3’23 Q3’24
Slide 11: Outlook 2024: Updated Divisional Guidance
Outlook 2024: Updated Divisional Guidance 2023 2024 2024 as reported at constant FX1 estimated FX impact2 -3% to -1%3 ~ -3%pts Net Sales €23.3bn (previously: -1% to +3%) (previously: ~ -2%pts) EBITDA Margin 18% to 20% ~ +1%pt Crop Science (before special items) 21.7% (previously: 20% to 22%) (previo
Slide 12: Outlook 2024: Updated Group Guidance
Outlook 2024: Updated Group Guidance in €bn 2023 2024 2024 as reported at constant FX1 estimated FX impact2 -3% to -4%pts Net Sales 47.6 -1% to +3% (previously: -2% to -3%pts) EBITDA -11% to -8% (before special items) 11.7 (previously: -9% to -3%) ~ -4%pts Core EPS (in €) 6.39 5.10 to 5.50 ~ -0.30 F
Slide 13: Anticipated Key Vectors for 2025
Anticipated Key Vectors for 2025 Continued strong growth dynamics of launch brands Pharmaceuticals: Likely rising generic headwinds for Xarelto, creating additional margin pressure Muted ag market growth and regulatory challenges Crop Science: As a consequence, increased pressure on profitability Ma
Slide 14: Stefan Oelrich, President Pharmaceuticals
///////////// Health for all, Hunger for none STEFAN OELRICH President Pharmaceuticals
Slide 15: Recent Data Solidify Foundation for Next Wave of Pharma Blockbusters
Recent Data Solidify Foundation for Next Wave of Differentiated Pharma Blockbusters Pharmaceuticals Best- First- Latest Phase III study results in-class in-class Commercial status Nubeqa • #1 in mCRPC, #2 in mHSPC ARANOTE: further expanding in mHSPC • 9M 2024 sales crossed €1bn mark Kerendia • on tr
Slide 16: Continued Topline Renewal; Margin Impacted by Product Mix and Growth Investments
Continued Topline Renewal; Margin Profile Impacted by Product Mix Changes and Growth Investments Pharmaceuticals Product Mix in % of Net Sales Key Drivers 2025 Base Business Eylea Xarelto Launches Continued strong launch dynamics of 6% 10% ~mid Nubeqa and Kerendia, supported by first teens launches
Slide 17: Rodrigo Santos, President Crop Science
///////////// Health for all, Hunger for none RODRIGO SANTOS President Crop Science
Slide 18: Resilient Performance Despite Challenging Market Dynamics
Resilient Performance Despite Challenging Market Dynamics Resilient Performance Additional Market Pressure cpa sales growth Lower corn acreage in Argentina and Brazil 2023 YTD 2024 Intensified crop protection pricing pressure Customer Bayer CS Core Business 7% -2% Centricity Prolonged soft commodity
Slide 19: Accelerating our Strategic Agenda to Prepare for Launches and Address Market Pressures
Accelerating our Strategic Agenda to Prepare for Launches and Address Market Pressures Key Drivers 2025 Actions Enabled by New Operating Model Market Dynamics: Muted ag market growth expected* Accelerate corn growth Generic pricing pressure in crop protection Prepare next wave of soy Challenged on-f
Slide 20: Julio Triana, President Consumer Health
///////////// Health for all, Hunger for none JULIO TRIANA President Consumer Health
Slide 21: Robust Organic Sales Growth by Building Trusted Brands
Robust Organic Sales Growth by Building Trusted Brands Our Vision: Help billions of people live healthier lives with the most trusted self-care solutions Our Foundation Our Priorities Strong, trusted brands with leading positions Drive Core Portfolio with focused innovation and resource allocation C
Slide 22: Bill Anderson, Chief Executive Officer
///////////// Health for all, Hunger for none BILL ANDERSON Chief Executive Officer
Slide 23: Our Clear Path Forward
Our Clear Path Forward Deliver 2024 and advance our strategic priorities Pharmaceuticals: Proceed on renewing our topline and progressing our pipeline Crop Science: Accelerate our strategic agenda to prepare for launches and address market pressures Consumer Health: Robust organic sales growth by bu
Slide 24: Q&A Session
///////////// Health for all, Hunger for none Q&A Session November 12, 2024
Slide 25: Appendix: Outlook
///////////// Health for all, Hunger for none APPENDIX Outlook 2024
Slide 26: Outlook 2024: Modelling Considerations
Outlook 2024: Modelling Considerations GROUP KEY DRIVER (€bn) 2024 Special items (EBITDA) primarily driven by ongoing restructuring at constant FX1 programs and DSO related severance payouts; including legal costs Special Items (EBITDA) -2.0 to -1.0 Core Financial Result now including updated impact
Slide 27: Appendix: Q3
///////////// Health for all, Hunger for none APPENDIX Q3 2024
Slide 28: Our Transformation: Customer and Product Teams Activated
Our Transformation: Vast Majority of Customer and Product Teams Activated # of Customer and Product Teams Dec 2023 April 2024 July 2024 October 2024 By end of 2024, every part of Bayer will have started working in the new operating model. < 50 ~ 500 ~ 900 > 1,000 Crop Science Pharmaceuticals Consume
Slide 29: Q3 2024: Core Net Income and Free Cash Flow
Q3 2024: Core Net Income and Free Cash Flow [€ bn] Q3 2023 Q3 2024 [€ bn] Q3 2023 Q3 2024 Net Sales 10.3 10.0 Reported EBITDA 1.3 0.9 EBITDA before special items 1.7 1.3 Tax payments -0.3 -0.1 Core depreciation -0.4 -0.4 Delta pensions -0.1 -0.1 1 Core EBIT 1.3 0.8 Gains/Losses Divestments 0.0 0.0 C
Slide 30: Q3 2024: Crop Science Sales by Strategic Business Entity
Q3 2024: Volume in Core Crop Protection Offset by Seed Headwinds in LATAM and Normalized Glyphosate Volumes Crop Science Q3 2024 Key Drivers Corn S&T: driven by pricing pressure in Brazil, reduced Sales by Strategic Business Entity area in Argentina due to leafhopper challenges, and higher returns i
Slide 31: Q3 2024: Pharmaceuticals Sales by Key Products
Q3 2024: Ongoing Growth Momentum of Launch Assets Offsetting Accelerated Headwinds on Xarelto Pharmaceuticals Q3 2024 Key Drivers Sales by Key Products Xarelto: sales increasingly affected by availabilities of €m ∆% cpa yoy generics in Canada and Europe; lower US royalties 848 Eylea: continued growt
Slide 32: Q3 2024: Consumer Health Sales by Category
Q3 2024: Growth Driven by Innovation and Solid Demand, Partly Offset by Soft Start Into Cold Season in the US Consumer Health Q3 2024 Key Drivers Sales by Category €m ∆% cpa yoy Dermatology: Growth mainly driven by our 345 +7% Bepanthen brand family, Canesten and strong demand Dermatology for our re
Slide 33: Solid Demand and Stabilized Glyphosate Market Expected in 24
Solid Demand and Stabilized Glyphosate Market Expected 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 Chinese Generic Glyp
Slide 34: Q3 2024: Core EPS to EPS Bridge
Q3 2024: Core EPS to EPS Bridge in € 0.24 -4.44 -4.26 thereof impairment Crop Science -0.03 -3.85 -0.32 +0.37 +0.02 -0.13 Core EPS Depreciation & Special Items Special Items Tax Effect on Minorities EPS (total) Q3 2024 Amortization (EBITDA) Financial Adjustments Q3 2024 (on IP and PPE) Results/Taxes
Slide 35: Q3 2024: Key Financial Measures by Division
Q3 2024: Key Financial Measures by Division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Sales 4,365 3,986 4,538 4,510 1,410 1,413 29 59 10,342 9,968 Sales by region: Europe / Middle East /
Slide 36: Appendix: 9M
///////////// Health for all, Hunger for none APPENDIX 9M 2024
Slide 37: 9M 2024: Group Performance
9M 2024: Group Performance 9M 2023 9M 2024 ∆% yoy in €bn +1% cpa Currency headwind of €1.2bn Net Sales 35.8 34.9 (-3% rep) EBITDA 8.7 7.8 Lower Crop Science and Pharma (EBITDA Margin) -10% result; currency headwind of €0.4bn (24.3%) (22.3%) before special items Core EPS (in €) 4.55 4.00 -12% Lower E
Slide 38: 9M 2024: Core Net Income and Free Cash Flow
9M 2024: Core Net Income and Free Cash Flow [€ bn] 9M 2023 9M 2024 [€ bn] 9M 2023 9M 2024 Net Sales 35.8 34.9 Reported EBITDA 8.0 6.8 EBITDA before special items 8.7 7.8 Tax payments -1.1 -0.9 Core depreciation -1.2 -1.2 Delta pensions -0.4 -0.4 1 Core EBIT 7.5 6.6 Gains/Losses Divestments -0.1 -0.1
Slide 39: 9M 2024: Crop Science Results
9M 2024: Lower Corn Acreage and Headwinds in Core Crop Protection in HY1 Weigh on Results Crop Science 9M 2024 Net Sales EBITDA Volume €m, before special items €m, ∆% yoy +0% EBITDA Margin before special items -2% cpa Price 17,640 (-4% rep) 16,874 -2% -14% Glyphosate 3,968 3,408 Currency -2% Core Bu
Slide 40: 9M 2024: Crop Science Sales by Strategic Business Entity
9M 2024: Lower Corn Acreage and Headwinds in Core Crop Protection Weigh on Results Crop Science 9M 2024 Key Drivers Corn S&T: lower acres in NA and LATAM more than Sales by Strategic Business Entity offset pricing increases €m ∆% cpa yoy Fungicides: adverse weather, lower acreage and generic pricing
Slide 41: 9M 2024: Launch Products and Eylea Continue To Drive Growth
9M 2024: Launch Products and Eylea Continue To Drive Growth Pharmaceuticals 9M 2024 Volume Net Sales1 EBITDA €m, ∆% yoy €m, before special items +2% EBITDA Margin before special items +4% cpa (0% rep) Price +2% -8% 13,502 13,473 3,923 3,618 -2.5% +1.2% 0.2% Currency +4.7% -3.8% -4% 29.1% 26.9% Portf
Slide 42: 9M 2024: Pharmaceuticals Sales by Key Products
9M 2024: Strong Performance of Launch Assets, Eylea and Radiology More Than Offset Headwinds on Xarelto and Adalat Pharmaceuticals 9M 2024 Key Drivers Sales by Key Products Xarelto: impacted by increased generic pressure in €m ∆% cpa yoy Canada and Europe; lower US royalties 2,632 Eylea: growth part
Slide 43: 9M 2024: Consumer Health Solid Growth
9M 2024: Solid Growth in Almost all Categories, Partly Offset by Soft Cough & Cold and Allergy Season Consumer Health 9M 2024 Volume Net Sales EBITDA -6% €m, ∆% yoy €m, before special items +3% cpa EBITDA Margin before special items (-3% rep) Price 4,449 4,303 +9% -2% 1,027 1,005 Currency -6% 23.1%
Slide 44: 9M 2024: Consumer Health Sales by Category
9M 2024: Growth due to Solid Demand and Normalized Supply; Soft Cough & Cold and Allergy Season Weighing on Growth Consumer Health 9M 2024 Key Drivers Sales by Category €m ∆% cpa yoy Dermatology: Growth mainly driven by Bepanthen brand family, Canesten and strong demand for our regional brands 1,068
Slide 45: 9M 2024: Core EPS to EPS Bridge
9M 2024: Core EPS to EPS Bridge in € 4.00 -5.92 thereof Q3 impairment Crop Science -3.85 -2.26 -0.98 +0.91 +0.02 -0.28 Core EPS Depreciation & Special Items Special Items Tax Effect on Minorities EPS (total) 9M 2024 Amortization (EBITDA) Financial Adjustments 9M 2024 (on IP and PPE) Results/Taxes 45
Slide 46: 9M 2024: Key Financial Measures by Division
9M 2024: Key Financial Measures by Division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 Sales 17,640 16,874 13,502 13,473 4,449 4,303 184 227 35,775 34,877 Sales by reg
Slide 47: Appendix: Innovation
///////////// Health for all, Hunger for none APPENDIX Innovation
Slide 48: 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 49: 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 50: Pharmaceuticals: R&D Developments Since August 28, 2024
Pharmaceuticals: R&D Developments (since last update on August 28, 2024) Phase I Phase II Phase III Commercial Initiation of SOS1 Inhibitor Submission for third in advanced solid cancers indication of darolutamide (mHSPC) for regulatory approval in U.S. and EU Discontinuation of Huntington’s Disease
Slide 51: Pharmaceuticals – Pipeline Overview
Pharmaceuticals – Pipeline Overview1 (as of November 8, 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) Adjuvant Prostate Cancer (DASL-HiCaP) DGKzeta Inhibitor (BA
Slide 52: Major R&D Milestones Expected Until End-2025
Major R&D Milestones Expected Until End-2025 Phase I Phase II Phase III Submission / Approval Sema3A mAB: Bemdaneprocel PD: Asundexian 2⁰ Stroke Finerenone HFmr/pEF: Primary compl. Phase I Start Phase II Prevention: First submission Primary compl. Phase III BRT-OpCT01 Primary (OCEANIC-STROKE) Acoram
Slide 53: Nubeqa Continues to Show Strong Uptake With Gains in All Regions
Nubeqa Continues to Show Strong Uptake With Gains in All Regions Global sales development (€m, cpa growth rates) US launch performance (monthly NBRx)1 +83% 1200 380 417 1000 300 283 800 232 258 600 200 400 100 200 Aug-22: mHSPC approval 0 0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 US Ex-US Nubeqa con
Slide 54: 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 +96% 8000 50,000 115 126 6000 40,000 30,000 85 85 4000 66 20,000 2000 10,000 0 0 Feb 22 Feb 23 Feb 24 Mrz 22 Mrz 23 Mrz 24 Jul 22 Jul 23 Jul 24 Jan 22 Mai
Slide 55: Thank you
///////////// Health for all, Hunger for none Thank you