Slide 1: FY / Q4 2023 Results
///////////// Health for all, Hunger for none FY / Q4 2023 Results March 05, 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: 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 4: 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 5: Strong Pricing from Innovation in the Core Business Partially Compensates for Glyphosate Normalization
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 6: Launch Products and Eylea Largely Make up for Xarelto Decline and China Weakness
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 7: Launch Assets Continue Strong Growth Momentum, Eylea and Radiology Playing Out Market Leadership
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 8: 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 9: Innovation in Dermatology and Strong, Balanced Remaining Portfolio, Driving Growth
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 10: Outlook 2024: Key Drivers
Outlook 2024: Key Drivers EXPECTED TAILWINDS Crop Science Core business to grow +1% to +4% cpa Expected 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
Slide 11: 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 12: 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 13: 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 2024e 1 1Reflects our 2024 guidance at constant
Slide 14: APPENDIX: Outlook
///////////// Health for all, Hunger for none APPENDIX Outlook 2024
Slide 15: 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 with increased interest payments Core Depreciation ~
Slide 16: 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 17: 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 18: 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 19: APPENDIX: FY 23
///////////// Health for all, Hunger for none APPENDIX FY 2023
Slide 20: 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 21: 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 Divestments -1.7
Slide 22: Strong Volume Recovery Partially Compensates for Glyphosate Pricing Normalization in 2023
Strong Volume Recovery Partially Compensates for Glyphosate Pricing Normalization in 2023 Crop Science Branded Glyphosate-Based Herbicide Sales Rapidly Normalizing as Generic Reference Price Reverts to Historical Median $14 6 $12 5 $10 4 $8 bn€ $/KG 3 $6 $3.80/Kg 2 $4 $2 1 $- 0 2019 2020 2021 2022 2
Slide 23: 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 +72% 1200 1000 258 232 800 201 158 178 600 400 Aug-22: mHSPC approval 200 0 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 US Ex-US Nubeqa continues The mHS
Slide 24: Kerendia Demonstrated Continued Launch Momentum in 2023, Growing +161% vs PY (cpa)
Kerendia Demonstrated Continued Launch Momentum in 2023, Growing +161% vs PY (cpa) Global sales development (€m, cpa growth rates) US launch performance (monthly NBRx)1 10000 50.000 +87% 8000 40.000 85 6000 30.000 67 66 48 52 4000 20.000 2000 10.000 0 0 Feb 22 Feb 23 Mrz 22 Mrz 23 Jul 21 Jul 22 Jul
Slide 25: 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 25 /// Bayer Capital M
Slide 26: 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 27: APPENDIX: Q4 23
///////////// Health for all, Hunger for none APPENDIX Q4 2023
Slide 28: Q4 2023: Group Performance
Q4 2023: Group Performance NET SALES EBITDA CORE EPS FREE CASH FLOW in €m, ∆% yoy in €m, before special items in €, Cont. Operations in €m +6% cpa (-1% rep) +23% +37% 12.000 11.862 4.260 3.023 2.462 20.5% 25.5% 1.85 1.420 1.35 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Currency Currency Mainly
Slide 29: 10% Core Business Growth Driven by Higher Volumes in LATAM
10% Core Business Growth Driven by Higher Volumes in LATAM Crop Science Q4 2023 Net Sales Core Business EBITDA Volume Glyphosate €m, ∆% yoy €m, before special items +15% Currency & Portfolio EBITDA Margin before special items +6% cpa Price +30% 1.070 (+1% rep) -9% 5,569 5,630 820 Currency -5% 14.7%
Slide 30: Strong LATAM Fungicide and Insecticide Volume Drive Growth
Strong LATAM Fungicide and Insecticide Volume Drive Growth Crop Science Q4 2023 Key Drivers Q4 2023 Sales by Strategic Business Entity Corn S&T: higher pricing in NA and LATAM €m ∆% cpa yoy Fungicides: exceptional volume growth in 1.522 LATAM and volume recovery in NA Corn Seed & Traits +9% 880 Herb
Slide 31: Solid Finish of The Year, Launch Products and Eylea More Than Offset Xarelto Decline
Solid Finish of The Year, Launch Products and Eylea More Than Offset Xarelto Decline and China Weakness Pharmaceuticals Q4 2023 Volume Net Sales1 EBITDA +4% €m, ∆% yoy €m, before special items +2% cpa EBITDA Margin before special items (-6% rep) Price 1.433 -12% -2% 1,266 4,855 -0.6%, 4,579 +3.2% -2
Slide 32: Launch Assets Continue Strong Growth Momentum, Eylea and Radiology Playing Out Market Leadership
Launch Assets Continue Strong Growth Momentum, Eylea and Radiology Playing Out Market Leadership Pharmaceuticals Q4 2023 Key Drivers Q4 2023 Sales by Key Products Xarelto: Sales decline driven by loss of €m ∆% cpa yoy exclusivity in some regions and pricing headwinds 1.047 -9% Eylea: Continued volum
Slide 33: Strong Broad-Based Growth Across all Regions and Categories
Strong Broad-Based Growth Across all Regions and Categories, Showing Continued Underlying Business Strength Consumer Health Q4 2023 Volume Net Sales EBITDA +3% €m, ∆% yoy €m, before special items +14% cpa EBITDA Margin before special items 1.524 (+4% rep) 1.578 Price +23% 384 +11% 313 Currency -10%
Slide 34: Solid Growth Compared to Strong Q4 2022
Solid Growth Compared to Strong Q4 2022 Consumer Health Q4 2023 Key Drivers Q4 2023 Sales by Category €m ∆% cpa yoy Allergy & Cold: Pronounced wave of cold and flu, particularly in Europe 388 +8% Allergy & Cold Nutritionals: Continued demand normalization, 375 +10% including contributions from Elevi
Slide 35: Q4 2023: Core EPS to EPS Bridge
Q4 2023: Core EPS to EPS Bridge (bn€, as rep) in € 1.85 -0.05 -0.38 -0.06 -4.60 thereof impairment Crop Science 1.36 -4.02 Core EPS Depreciation & Amortization Special Items Special Items Tax Effect on EPS (total) Q4 2023 (on IP and PPE) (EBITDA) Financial Results/Taxes Adjustments Q4 2023 35 /// Ba
Slide 36: Q4 2023: Key Financial Measures by Division
Q4 2023: Key Financial Measures by Division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Sales 5,569 5,630 4,855 4,579 1,524 1,578 52 75 12,000 11,862 Sales by region: Europe / Middle East