Bayer Ag · XETR:BAYN
Bayer — Q1 2023 Earnings Presentation
26 slides from Bayer's earnings presentation, May 11, 2023
Slide 1: Q1 2023 Investor Conference Call
Q1 2023 //////////////// Investor Conference Call May 11th, 2023
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: CEO Remarks
CEO Remarks Werner Baumann, CEO
Slide 4: Slow Start – Outlook Confirmed
Slow Start – Outlook Confirmed 1 Solid Underlying Growth 2 Glyphosate Dynamics Key Variable 3 Earnings at Lower End of Range 4 Bayer Q1 2023 Investor Conference Call /// May 11th, 2023
Slide 5: Results & Outlook
Results & Outlook Wolfgang Nickl, CFO
Slide 6: Group Performance Q1 2023
Group Performance Q1 2023 NET SALES EBITDA CORE EPS FREE CASH FLOW in m€, ∆% yoy in m€, in €, Cont. Operations in m€ before special items -2% (-1% cpa) 14.639 14.389 -15% 5.251 -16% Q1'22 Q1'23 4.471 3,53 -1.187 2,95 35.9% 31.1% -4.102 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Minor currency Lower divisio
Slide 7: Crop Science: Faster glyphosate normalization nearly offset by growth in remaining portfolio
Faster glyphosate normalization nearly offset by strong growth of 8% in remaining portfolio Net Sales EBITDA Volume m€, ∆% yoy m€, before special items -8% EBITDA Margin before special items -1% Price (-1% cpa) +7% -11% 8,447 3.669 8,351 3.267 Currency -688 +592 +2% (-50%) (+8%) 43.4% 39.1% Portfoli
Slide 8: Pharmaceuticals: Launch assets continue to perform well, headwinds in China
Launch assets continue to perform well, headwinds in China Net Sales EBITDA Volume m€, ∆% yoy m€, before special items -2% EBITDA Margin before special items -5% Price (-3% cpa) -1% -20% 4.624 4.407 1.389 Currency -1% 1.106 Portfolio 30.0% 25.1% -1% Q1'22 Q1'23 Q1'22 Q1'23 Pharmaceuticals Q1 2023 Nu
Slide 9: Consumer Health: Continued growth, Nutritionals normalize at high level
Continued growth, Nutritionals normalize at high level Net Sales EBITDA Volume m€, ∆% yoy m€, before special items -4% EBITDA Margin before special items +4% Price (+4% cpa) +8% -2% Currency 1.512 1.573 388 379 0% Portfolio 25.7% 24.1% 0% Q1'22 Q1'23 Q1'22 Q1'23 Consumer Health Q1 2023 Allergy (+16%
Slide 10: Updated Divisional Outlook Full Year 2023
Updated Divisional Outlook Full Year 2023 Sales Growth Sales Growth EBITDA Margin as of Feb, cpa 1 revised May, cpa 1 before special items 1 ~ +3% ~ +1.5% ~25% Crop Science ~ +1% ~ +1% > 29% Pharmaceuticals ~ +5% ~ +5% ~ 23% Consumer Health 10 Bayer Q1 2023 Investor Conference Call /// May 11th, 202
Slide 11: Group P&L Outlook confirmed towards lower end of range
Group P&L Outlook confirmed towards lower end of range in € FY 2023 OUTLOOK Key Assumptions at constant currencies 1 Net Sales 51bn – 52bn • Representing sales growth of 2% to 3% cpa • Including portfolio effects of -€500m in sales EBITDA 12.5bn – 13bn • FX headwinds of ~€1.7bn estimated for sales 2
Slide 12: Q1 2023 Back Up
Q1 2023 //////////////// Back Up May 11th, 2023
Slide 13: FY 2023: Group Other KPIs (as of Feb. 2023)
FY 2023: Group Other KPIs (as of Feb. 2023) FY 2023 OUTLOOK Key Assumptions at constant currencies1 Special Items ~ - €1.0bn • Special items (EBITDA) primarily driven by (EBITDA) ongoing restructuring programs • Core depreciation: Formerly guided for “as Core Depreciation ~ - €1.6bn depreciation and
Slide 14: Accelerating Growth Excluding Glyphosate (updated May 2023)
Accelerating Growth Excluding Glyphosate (updated May 2023) Sales Growth 1 EBITDA Margin 1 (cpa) (before special items) Crop Science FY Outlook ~ +1.5% ~25% (revised May 2023) Key Assumptions Sales • Portfolio ex. glyphosate expected to grow by ~10%, or ~€2.0bn: Expect double-digit percent sales inc
Slide 15: New Products to Offset Declines in Mature Portfolio
New Products to Offset Declines in Mature Portfolio (as of Feb. 2023) Sales Growth 1 EBITDA Margin 1 (cpa) (before special items) Pharmaceuticals FY Outlook ~ +1% > 29% (Feb. 2023) Key Assumptions Sales • Accelerated growth from Nubeqa and Kerendia to exceed €1bn, Eylea expected to offset increasing
Slide 16: Above-Market Growth and Margin Expansion in a Challenging Environment
Above-Market Growth and Margin Expansion in a Challenging Environment (as of Feb. 2023) Sales Growth 1 EBITDA Margin 1 (cpa) (before special items) Consumer Health FY Outlook ~ +5% ~ 23% (Feb. 2023) Key Assumptions Sales • Executing on our mid-term ambitions, innovation and the value of our brands w
Slide 17: Q1 2023: Core EPS to EPS Bridge
Q1 2023: Core EPS to EPS Bridge in € 17 Bayer Q1 2023 Investor Conference Call /// May 11th, 2023
Slide 18: Q1 2023: Summary
Q1 2023: Summary Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 Sales 8,447 8,351 4,624 4,407 1,512 1,573 56 58 14,639 14,389 Sales by region: Europe / Middle East / Africa 2,133 2,297 1,835
Slide 19: Q1 2023 Back Up Innovation
Q1 2023 //////////////// Back Up Innovation May 11th, 2023
Slide 20: Crop Science: Seed & Traits and Digital R&D Pipeline
Crop Science: Seed & Traits and Digital R&D Pipeline (Annual Update Feb 2023) Phase I Phase II Phase III Phase IV PSP €21bn PSP CORN SEED & TRAIT Corn Disease Shield - NA 5th Generation Lepidoptera Protection Short Stature Corn – Biotech Trait3 Short Stature Corn – Breeding Approach 2nd Generation S
Slide 21: Crop Science: Crop Protection R&D Pipeline
Crop Science: Crop Protection R&D Pipeline (Annual Update Feb 2023) €9bn PSP Phase I Phase II Phase III Phase IV Life Cycle Management1 PSP New AI Development Non-Selective New Herbicide Glyphosate LCM New Herbicide Selective HERBICIDES New Herbicide New Herbicide ~€4bn Merlin Flexx / Adengo LCM Mat
Slide 22: Pharmaceuticals: Nubeqa sales more than doubled again in Q1
Pharmaceuticals: Nubeqa sales more than doubled again in Q1, continuing to gain market share Global sales development (€m, cpa growth rates) Key sales drivers 178 158 Q1 2023: 127 106 76 US continues to be key growth driver, driven by mHSPC2 US launch and ongoing nmCRPC3 gains ex-US Nubeqa now at #2
Slide 23: Pharmaceuticals: Kerendia continues strong launch momentum
Pharmaceuticals: Kerendia continues strong launch momentum since initial US launch in Aug 2021 Global sales development (€m, cpa growth rates) Key sales drivers 52 Q1 2023: 48 29 Continued US market uptake 20 11 US ex-US Significant growth in NBRx compared to Q1 2022 (>90%) Q1 2022 Q2 2022 Q3 2022 Q
Slide 24: Pharmaceuticals: R&D Developments (since last update on Feb 15, 2023)
Pharmaceuticals: R&D Developments (since last update on Feb 15, 2023) Phase I Phase II Phase III Commercial Initiation of LGMD2i Gene Discontinuation of BDKRB1 Darolutamide (AR Inhibitor) / Nubeqa (Darolutamide) Therapy (LION-101) Receptor Antagonist Prostate Cancer with Approval in mHSPC in Neuro
Slide 25: Pharmaceuticals: Pipeline Overview (as of Apr 26, 2023)
Pharmaceuticals: Pipeline Overview1 (as of Apr 26, 2023) Phase 02 Phase I Phase II Phase III DGKalpha Inh (BAY 2862789) Elimusertib (ATR Inhibitor) (BAY 1895344) Regorafenib (combi Nivolumab) (BAY 734506) Copanlisib (PI3K Inhibitor) Solid tumors (recurrent or metastatic) Non-Hodgkin Lymphoma (CHRONO
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