Slide 1: Crop Science Annual R&D Pipeline Update
Crop Science Annual R&D Pipeline Update Advancing Tomorrow‘s Innovations Today /////////// February 16, 2022 Rodrigo Santos President, Crop Science Division Bob Reiter, PhD Head of R&D, Crop Science Division Jeremy Williams, PhD Head of Climate LLC and Digital Farming Solutions 35 /// Bayer Crop Sci
Slide 2: Agenda
Agenda Welcome 1 Oliver Maier Head of Investor Relations 2 Prepared Remarks Rodrigo Santos Robert Reiter, Ph.D. Jeremy Williams, Ph.D. President, Head of R&D, Head of Climate LLC and Crop Science Division Crop Science Division Digital Farming Solutions 3 Q&A 2 /// Bayer Crop Science Annual R&D Pipel
Slide 3: 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 4: Rodrigo Santos, President of the Crop Science Division
Rodrigo Santos • President of the Crop Science Division Health for all, Vision hunger for none 4 /// Bayer Crop Science Annual R&D Pipeline Update /// February 16, 2022
Slide 5: Win by being more grower centric
Purpose Shaping agriculture for the benefit of farmers, consumers and the planet Perform Transform Strategic Grow above market and deliver Achieve 100% digitally enabled Ambition strong returns sales by 2030 Pillars Operational Excellence World Class Innovation Digital Transformation New Standards i
Slide 6: Innovative, Sustainable Solutions to Address Global Challenges
Innovative, Sustainable Solutions to Address Global Challenges Key Global Challenges Our Priorities Pipeline of Sustainable Solutions Growing Population Producing & • Higher-yielding, disease-resistant seeds Increasing Protein Demand Protecting Higher • Next-generation biotech traits and crop protec
Slide 7: Unmatched R&D Investment Powers Industry-Leading Portfolio
Unmatched R&D Investment Powers Industry-Leading Portfolio Ag R&D Investment (€bn) 2.0 #1 R&D Platform in Crop Science 1.2 1.0 0.8 >7,100 R&D employees3 Bayer Crop Science 1 Syngenta + Adama 2 Corteva BASF Ag >100 key Ag Chem Seed & Traits collaborations; partner of choice 1 2020 reported results, c
Slide 8: Breakthrough Technology Investments Expand R&D Reach
Breakthrough Technology Investments Expand R&D Reach Five Additions in 2021; 21 Distinct Investments in Sustainable Productivity and Improved Nutrition Leap 03/ Reduce environmental impact of agriculture Leap 07 / Provide next-generation healthy crops * Leap 08/ Develop sustainable protein supply *
Slide 9: Pipeline with Up to €30bn Peak Sales Potential Delivering for Farmers
Pipeline with Up to €30bn Peak Sales Potential Delivering for Farmers Eight Projects Advance, Eight New Formulations Launch and Hundreds of Seed Deployments in 2021 Value of Up to €30bn New crop in Cumulative Peak Sales Potential1 >300 protection >500 registrations Cumulative contribution of ~50% In
Slide 10: Advanced breeding technologies
advanced breeding technologies New product design center in Petrolina, Brazil 10 /// Bayer Crop Science Annual R&D Pipeline Update /// February 16, 2022
Slide 11: Deploying >250 Corn Hybrids in 2021 to Expand Leading Position
breeding Deploying >250 Corn Hybrids in 2021 to Expand Leading Position Foundational to Expected Growth in Our > €5bn Global Annual Corn Seed & Trait Sales Bayer Corn Seed Market and Share Positions in Key Countries NEW Superior-performing Bayer branded hybrids capture #1 brand share position in the
Slide 12: Annual Germplasm Upgrade Drives Growth and Attracts Partners
breeding Annual Germplasm Upgrade Drives Growth and Attracts Partners High-Performing Seeds in Soybeans, Cotton and Vegetables Generating ~€3bn in Annual S&T Sales Soybeans Cotton Vegetables New Vitabite Tomatoes in China • Deployed >150 new varieties in 2021; offer • Deployed >10 varieties in 2021;
Slide 13: Designing the Best Seeds Through Precision Breeding
breeding Designing the Best Seeds Through Precision Breeding Utilizing Advancements in Genomics, Data Science and Gene Editing to Accelerate Product Development Customer Data & Seed Chipping, Accelerated Prescriptive Globally connected Customer Designed Insights @ Scale Genotyping, & Selection Germp
Slide 14: Next-generation biotech traits
next-generation biotech traits 35 /// Bayer Crop Science Annual R&D Pipeline Update /// February 16, 2022
Slide 15: Three Generations of Soybean Herbicide Tolerance Traits
biotech Three Generations of Soybean Herbicide Tolerance Traits Technologies Provide Solutions to Address Farmer’s Needs, Herbicide Resistance Challenges 3 herbicide tolerances 5 herbicide tolerances 6 herbicide tolerances • Glyphosate • Glyphosate • Glyphosate HT4 HT5 • Dicamba • Dicamba • Dicamba
Slide 16: Next-Gen Intacta Traits to Sustain Leading Franchise in Brazil
biotech Next-Gen Intacta Traits to Sustain Leading Franchise in Brazil Intacta 2 Xtend Launched; IP3 Currently in Phase 3, IP4 Advanced to Phase 1 # 1 South America soybean system1 Control IP3 Velvetbean Caterpillar Control IP3 • Excellent control of soybean Infested Soybean Looper Infested loopers,
Slide 17: Multiple Traits in Late-Stage Development for Cotton Farmers
biotech Fourth-Gen Phase 3 Multiple Traits in Late-Stage Development for Cotton Farmers Leading Innovation for Cotton Growers Driving Growth in >€500m1 Cotton S&T Business 1st generation 5 herbicide tolerances 4th generation • First-ever biotech trait for • Glyphosate • HPPD • Season-long protection
Slide 18: Rollout of Most Advanced Corn Rootworm Control Trait Continues
biotech Rollout of Most Advanced Corn Rootworm Control Trait Continues CRW3: Industry’s-Only RNAi-Based Corn Rootworm Trait NEW: 4 Expected LAUNCHED: Brazil 2021 LAUNCHED: U.S. 2022 Launch : U.S. 2024 ~500k acres ~100k acres 3 Corteva QROME Product (P1366Q) Average Root Rating: 0.30 Location: Ireton
Slide 19: Set the stage for short-stature corn
biotech and breeding set the stage for short-stature corn Three Development Approaches to Short- Stature Corn Enable Broader Market Reach: Breeding: ADVANCED to Phase 4 Planning for U.S. Commercial Trials in 2023 • Advanced breeding introgresses naturally occurring short stature characteristic into
Slide 20: Short-Stature Corn Offers Transformational Shift in Production
biotech and breeding Short-Stature Corn Offers Transformational Shift in Production Anticipated Fit on >220m Acres and Estimated Incremental Peak Sales Potential of ~€1bn for NA Field Plots Around the Globe Demonstrate Key Features and Benefits of Short-Stature Corn Game-Changing Innovation Digitall
Slide 21: Growers Cite High-Interest in Short-Stature Corn
biotech and breeding Growers Cite High-Interest in Short-Stature Corn Top Producer Farmer Focus Group – Dyersville, IA August 2021 Likelihood of Planting Short-Stature Corn Hybrids PRE Tour (n=14) 5 5 2 2 Extremely Likely Not at All Likely 2022 U.S. Pre-Launch Plans: POST Survey (n=17) Tour (n=17) 1
Slide 22: New approaches in crop protection
new approaches in crop protection 122 /// Bayer Crop Science Annual R&D Pipeline Update /// February 16, 2022
Slide 23: Progressing from Volume to Value with Our Crop Protection Vision
small molecules Progressing from Volume to Value with Our Crop Protection Vision Today Future Enhanced by Digital Farming Leading Portfolio Solutions Convergence of Advances in Small Molecules, Biology and Biotechnology Innovation with Digital Technology to Create New Value and Sustainable Productiv
Slide 24: Fungicides: New Innovations Drive our Growth Potential
small molecules Fungicides: New Innovations Drive our Growth Potential Fungicide sales in 2020: €2.6bn, Pipeline Peak Sales Potential of ~€4bn • Includes next-gen • Prothioconazole technology Indiflin®1, with Prothioconazole 3 • Trifloxystrobin MoA • Fluopyram • Powered by Fluoxapiprolin • Offers un
Slide 25: Herbicides: Focused on Unlocking Greater Flexibility
small molecules Herbicides: Focused on Unlocking Greater Flexibility Herbicide sales in 2020: €4.7bn, Pipeline Peak Sales Potential of ~€3bn • Pyroxasulfone New Herbicide • First new mode of action in post 3 MoA • Diflufenican • Aclonifen NEW Molecule emergence weed control in 30 years • Mateno Comp
Slide 26: Transformation of Small Molecule Discovery
small molecules Transformation of Small Molecule Discovery to Enrich Pipeline with Novel and Sustainable MoA‘s Advanced Discovery Engine Novel MoA in Research Pipeline Computational Target Discovery Discover selective and safe MoA by proprietary algorithms & omics New Paradigm in Screening 100% >70%
Slide 27: Biologicals Create New Value; Enable Crop Management Benefits
biologicals Biologicals Create New Value; Enable Crop Management Benefits Leveraging the Power and Sustainability Derived from Microbes Bayer is the #1 Trusted Brand in Biologicals by Growers4 SeedGrowth Foliar & Soil applied Crop Soilborn Performance Corn Yield Soy Yield Nematicide Fungicide Other
Slide 28: Biologicals Complementary to our Seeds, Digital and Small Molecules Portfolio
biologicals Biologicals Complementary to our Seeds, Digital and Small Molecules Portfolio Serenade All Organic Production with Serenade in Beans Biological Fungicide • Delivers sustainable solutions in emerging soil and expanding bacterial disease markets • Serenade Soil Activ propels growth of Sere
Slide 29: Powered by data science
powered by data science 32 /// Bayer Crop Science Annual R&D Pipeline Update /// February 16, 2022
Slide 30: Digital Farming Solutions Underpin and Enhance Transformational Solutions
data science Digital Farming Solutions Underpin and Enhance Our Ability to Bring Transformational Solutions to Agriculture Our Positive Impact on Agriculture Three Core Value Drivers • Increase yield and improve profitability Franchise Value • Leverage information to manage risk and address variabil
Slide 31: Climate FieldView Provides Unmatched Visualization, Analysis and Insights
data science Climate FieldView Provides Unmatched Visualization, Analysis and Insights to Enable Growers to Enhance Productivity Climate FieldView • >180m subscribed acres • Largest database of grower and field trial seed • #1 brand in digital ag1 performance data in industry • Operates in 23 countr
Slide 32: FieldView Creates Franchise Value via Insights
data science FieldView Creates Franchise Value via Insights Increases Product Performance Transparency and Enables Seed and CP Digital Recommendations Turning field data into insights Bayer corn seed customers who are FieldView Plus users have >5% higher 2-Year sales CAGR 1,2,3 • Data Connectivity
Slide 33: Digital Unlocks Scalable Climate-Smart Business Models
data science Digital Unlocks Scalable Climate-Smart Business Models Carbon Markets Valued at >$200bn/year1 and Growing with Consumers' Demand for Sustainability has the potential to Carbon Initiative streamline the way carbon is measured, verified and reported, to enable scalable, participating clim
Slide 34: Enabling New Digital Platforms in Ag
data science Enabling New Digital Platforms in Ag Opens Access to Participate in Broader B2B AgTech Value Pools; Expanding into Digital Marketplaces Orbia: First Digital Ag-Marketplace Collaboration • JV between Bayer and Bravium1 • Connects growers, input providers and grain traders to a network to
Slide 35: Win with world class innovation: Key Take-Aways
Winwith world class innovation Key Take-Aways Investing to Lead • ~€2bn annual R&D spend to fuel ~€30bn peak sales potential • Five New Leaps Investments Advancing Innovation • Eight projects advance, including • Short-Stature Corn Hybrids • Bollgard 4 and HT4 Cotton Powering the Core • ~500 new hyb
Slide 36: Q&A
Q&A 136 /// Bayer Crop Science Annual R&D Pipeline Update /// February 16, 2022
Slide 37: Field Innovation Showcase
Field Innovation Showcase August 2022 37 /// Bayer Crop Science Annual R&D Pipeline Update /// February 16, 2022
Slide 38: Appendix 1: Crop Science R&D Pipeline
February 2022 Crop Science Annual Pipeline Update Crop Science R&D Pipeline /////////// Appendix 1
Slide 39: Crop Science Division: R&D Pipeline (as of February 2022)
Crop Science Division: R&D Pipeline (as of February 2022) Key Corn Seed & Traits, Soybean Seed & Traits and Other Projects with ~€19-€21bn Peak Sales Potential; ~50% Incremental Phase I Phase II Phase III Phase IV Life Cycle Mgmt. 1 Digital Disease Mgmt. – NA 5th Generation Lepidoptera Protection Tr
Slide 40: Crop Science Division: R&D Pipeline (as of February 2022)
Crop Science Division: R&D Pipeline (as of February 2022) Key Crop Protection Projects with ~€9bn Peak Sales Potential; ~50% Incremental Phase I Phase II Phase III Phase IV Life Cycle Management 1 New AI Development Non-Selective Glyphosate LCM New Herbicide New Herbicide (Post-Emergence Broad Acre)
Slide 41: Appendix 2: Platform Capabilities and Development Timelines
February 2022 Crop Science Annual Pipeline Update Platform Capabilities and Development Timelines /////////// Appendix 2
Slide 42: Breadth and Depth of Five Core R&D Platforms Power Innovation
Breadth and Depth of Five Core R&D Platforms Power Innovation CONVERGENCE OF LEADING R&D PLATFORMS TO UNLOCK NEXT LAYER OF VALUE CREATION IN AGRICULTURE SEEDS & TRAITS CROP PROTECTION DIGITAL FARMING Breeding Biotech Chemistry Biologicals Data Science 270,000 microbes in #1 Leading germplasm Leading
Slide 43: Scale and Expertise in Biotech Crop Development Lead the Industry
Transformative Technologies Scale and Expertise in Biotech Crop Development Lead the Industry Designing Crops to Revolutionize Agriculture Trait Development Process (12-15 years) Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Gene/Trait Identification Proof of Concept Early Development Advanced Development
Slide 44: Industry-Leading Expertise in Chemical Crop Protection R&D
Industry-Leading Expertise in Chemical Crop Protection R&D Designing Low Impact Chemicals to Safely & Sustainably Address Needs of Farmers and Society Chemical Crop Protection R&D timeline (10-14 years) Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Molecular Target & Hit Proof of Concept Early Development
Slide 45: Scale and Leading Technology Drives New Seed Development
Scale and Leading Technology Drives New Seed Development Enhancing the Breeding Process with Scalable Analytics, Automation and Improvements in Testing Germplasm Product Development Process (8 - 10 years) Discovery Phase One Phase Two Phase Three Phase Four Population Selection Early Development Int
Slide 46: Exploring New Product Concepts Drives Future Growth for Biologics
Exploring New Product Concepts Drives Future Growth for Biologics Open Innovation approach broadens product offerings with exceptional product development and support 4-6 Year Product Development Timeline Partner of choice for developing biological products including new concepts Research Field Grow