Bayer Ag · XETR:BAYN
Bayer — Q2 2020 Earnings Presentation
21 slides from Bayer's earnings presentation, Aug 4, 2020
Slide 1: Investor Conference Call Q2 2020 Results
Pictures to be updated Investor Conference Call /////////// Q2 2020 Results August 4, 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: Q2 2020 Results: Business Update
Q2 2020 Results Business Update /////////// Werner Baumann, CEO
Slide 4: Q2 2020: Solid results despite COVID-19 headwinds
Q2 2020: Solid results despite COVID-19 headwinds € 10,054m -3% € 2,883m +6% yoy Sales yoy* EBITDA Before special items € 1.59 +5% € 1.402m +87% yoy yoy Core EPS Free Cash Flow * ∆% yoy, Fx & portfolio adj 4 Bayer Q2 2020 Investor Conference Call
Slide 5: Q2 2020: Crop Science with strong margin expansion
Q2 2020: Crop Science with strong margin expansion Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 4% - 3% +3 % 4,788 4,802 Price Portfolio 0% 0% Growth driven by LATAM (+19%), APAC (+11%) and North America (+2%) offsetting shortfall in EMEA (-9%) Good growth across almost all
Slide 6: Q2 2020: Pharmaceuticals impacted by reduction of elective treatments
Q2 2020: Pharmaceuticals impacted by reduction of elective treatments and volume-based procurement in China Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. - 1% - 1% -9 % 4,442 3,992 Price Portfolio 0% COVID-19 impacts elective treatments, - 8% specifically the IUD franchise (-37%)
Slide 7: Q2 2020: Consumer Health affected by trade inventory adjustments
Q2 2020: Consumer Health affected by trade inventory adjustments after strong first quarter Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. - 4% - 2% 1,442 -2 % 1,201 Price Portfolio + 2% 13% - Sales development impacted by trade inventory build-up in Q1 related to COVID-19 and slo
Slide 8: Q2 2020 Results: Financials & Outlook
Q2 2020 Results Financials & Outlook /////////// Wolfgang Nickl, CFO
Slide 9: Q2 2020 Result
Q2 2020 Result Sales EBITDA * Core EPS Free Cash Flow In million €, ∆% yoy, Fx & portfolio adj. In million €, before special items In €, Cont. Operations In € million Negative FX effect of -€12 million Cash Flow development driven by Negative FX effect of -€214 million Tax rate: 23 % versus 21 % in
Slide 10: EPS affected by special items related to litigations
EPS affected by special items related to litigations in € -0,71 1,59 0,41 -12,71 -9,79 -9,72 0,07 1,97 0,07 Core EPS Amortization / Special items Special items Tax effect EPS Discontinuing EPS (total) EPS (total) Q2'2020 Write-down of (EBITDA financial on (Continuing Operations Q2'2020 Q2'2019 IP an
Slide 11: Net Financial Debt slightly increases
Net Financial Debt slightly increases in € million 2,855 52 -1,472 40,000 -5,083 35,000 41,076 39,641 30,000 35,993 35,399 5,000 0 Gross Financial Bonds / FX Commercial Paper Other Financial Gross Financial Cash / Net Financial Debt Net Financial Debt Debt 31.03.2020 Liabilities Debt 30.06.2020 Othe
Slide 12: H2 2020 Outlook: Focus on cash and cost management
H2 2020 Outlook: Focus on cash and cost management as COVID- 19 continues to weigh on business dynamics 1 Group Ensure business continuity Accelerate efficiency programs 2 Crop Science Reduced demand for bio-ethanol and grains could decrease acres planted in our key crops Adverse currency de
Slide 13: Updated guidance for 2020
Updated guidance for 2020 Excluding currency impact Outlook Outlook1 Outlook Expected as of Aug 2020 as of Feb 2020 Delta as of Aug 2020 incl. COVID19 currency impact² incl. COVID-19 and currency impact Sales €44-€45bn ~- €1 bn €43-€44bn ~ - €1bn €42- €43bn EBITDA margin ~ 28% no material effect ~ 2
Slide 14: Q2 2020 Results (Annex)
Pictures to be updated Investor Conference Call /////////// Q2 2020 Results (Annex) August 4, 2020 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 15: Key KPIs – Bayer Group
Key KPIs – Bayer Group Q2 2019 Q2 2020 % y-o-y Net Sales 10,713 10,054 -6 / -3%2 Mainly related to provisions for litigations EBITDA before special items 2,730 2,883 5.6% Special items -416 -12,487 2901.7% Reported EBITDA 2,314 -9,604 -515.0% Depreciation & Amortization -1,529 -1,180 -22.8% Reported
Slide 16: Key KPIs by division
Key KPIs by division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million] Q2'19 Q2'20 Q2'19 Q2'20 Q2'19 Q2'20 Q2'19 Q2'20 Q2'19 Q2'20 € million € million € million € million € million € million € million € million € million € million Sales 4,788 4,802 4,422 3,992 1,442 1,201
Slide 17: H1 2020 – Group Overview
H1 2020 – Group Overview € 22,899m +2% € 7,274m +8% yoy Sales yoy* EBITDA Before special items € 4.26 +8% € 609m -52% yoy yoy Core EPS Free Cash Flow * ∆% yoy, Fx & portfolio adj 17 Bayer Q2 2020 Investor Conference Call
Slide 18: H1 2020 - Segment Overview
H1 2020 - Segment Overview Crop Science Pharma Consumer Health In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. +5% -3% 2,837 +6% 11.636 8.776 8.538 2.599 11.232 Sales H1'19 H1'20 H1'19 H1'20 H1'19 H1'20 before special item
Slide 19: Updated Guidance 2020 – Group and Divisions
Updated Guidance 2020 – Group and Divisions Outlook as of Feb 2020 Update outlook as of Aug 2020 Sales Growth 2020 EBITDA-margin Sales Growth 2020 EBITDA-margin (cpa2) 2020 (cpa2) 2020 (before special items) (before special items) Group* 3-4% ~28% 0-1% ~28% Crop ~4% ~26% ~2% ~25% Science Pharma 3-4%
Slide 20: Updated Guidance 2020 - other major KPIs
Updated Guidance 2020 - other major KPIs Initial guidance Updated guidance Special items (EBITDA) ~ €0.9 billion ~ €14 billion R&D expenses ~ €5.4 billion ~ €5.1 billion Capital expenditures (cash relevant) ~ €2.8 billion ~ €2.4 billion of which for intangible assets (cash relevant) ~ €0.7 billion ~
Slide 21: Major Pharma development portfolio projects in clinical Phase I to III
Pharma: Major Pharma development portfolio projects in clinical Phase I to III (as of July 2020) Phase I (26) Phase II (14) Phase III Phase III (9) (9) Selitrectinib (TRK Inhibitor, formerly LOXO-195) Urothelia Cancer /// Rogaratinib (pan-FGFR Inhibitor) Prostate Cancer (mHSPC) /// Darolutamide Roga