Bayer Ag · XETR:BAYN
Bayer — Investor Day (March 2024)
17 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 BILL ANDERSON Chief Executive Officer
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: 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€ • >200 bn€2 exp. Global Ag Input Market in Growing Markets & Related Adjacencies by 2030 41% to address Pharmaceuticals • Strong market position
Slide 4: 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 5: 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 • Limited to none • Highly dependent on exit route • Sustainable savings and and market environment additional growth potential Creation Complexit
Slide 6: 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 7: 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 8: 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 8 /// Bayer Capital Markets Day /// March 5, 2024
Slide 9: 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 9 /// Bayer Capital Markets Day /// March 5, 2024
Slide 10: Addressing Our Challenges
Addressing Our Challenges PHARMA LoE, PIPELINE STRUCTURE LITIGATION • Improve operational performance HIGH DEBT • Cash conversion measures • Change dividend policy BUREAUCRACY 10 /// Bayer Capital Markets Day /// March 5, 2024
Slide 11: 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 11 /// Bayer Capital Markets Day /// March 5, 2024
Slide 12: Our New Operating Model DSO Yields Several Advantages
Our New Operating Model DSO 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 innova
Slide 13: 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 14: Achieved Our Revised Commitments in 2023; 2024 First in a Three-Year Rejuvenation Period
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 15: 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 16: 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. 16 /// Bayer Capital Markets Day /// March 5, 2024
Slide 17: Enhance Performance, Regain Flexibility
///////////// Health for all, Hunger for none ENHANCE PERFORMANCE REGAIN FLEXIBILITY