Bayer Ag · XETR:BAYN
Bayer — Q3 2018 Earnings Presentation
22 slides from Bayer's earnings presentation, Nov 13, 2018
Slide 1: Investor Conference Call Q3 2018 Results
Investor Conference Call /////////// Q3 2018 Results November 13, 2018 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information Certain statements contained in this communication may constitute “forward-looking statements.” Actual results could differ materially from those projected or forecast in the forward-looking statements. The factors that could cause actual r
Slide 3: Agenda
1. Business Update Q3 2018 & Outlook FY 2018 2. Financials Q3 2018 Agenda Werner Baumann, CEO 3 /// Q3 2018 Investor Conference Call
Slide 4: Q3 2018 – Key Takeaways
Q3 2018 – Key Takeaways Good performance in a challenging environment Group outlook for 2018 confirmed Positive pipeline developments at Pharmaceuticals Divestments to BASF completed Successful start of integration process Net debt further reduced Glyphosate litigation: Filing of an appeal in prepar
Slide 5: Q3 2018 - Divisional Highlights
Q3 2018 - Divisional Highlights Pharmaceuticals Crop Science Key growth products continued strong performance Pro forma sales grew by 1.4%, driven by growth in soybean and corn seed & traits in the Americas, as well as FDA approval of Xarelto for patients with CAD/PAD by improved pricing and volumes
Slide 6: FY 2018 Group Outlook Confirmed
FY 2018 Group Outlook Confirmed 2017 Group Forecast 2018 Group Forecast 2018 (at closing rates of September 30, 2018) (currency adjusted) Sales €35.0bn >€39.0bn Mid-single-digit % increase (currency and portfolio adjusted) EBITDA Low-to-mid-single-digit % €9.3bn High-single-digit % increase (before
Slide 7: Agenda
1. Business Update Q3 2018 & Outlook 2018 2. Financials Q3 2018 Agenda Wolfgang Nickl, CFO 7 /// Q3 2018 Investor Conference Call
Slide 8: Q3 2018 – On Track for FY Group Guidance
Q3 2018 – On Track for FY Group Guidance Sales EBITDA Core EPS in € million; ∆% yoy, Fx & portfolio adj. before special items; in € million cont. operations; in € Negative Fx impact of €207m * Negative Fx impact of €159m * Impacted by increased share count and incremental interest expense +2% 9,905
Slide 9: Q3 2018 – Pharmaceuticals Driven by Key Growth Products
Q3 2018 – Pharmaceuticals Driven by Key Growth Products Sales in € million; ∆% yoy, Fx & portfolio adj. 4,065 +5% 4,163 Volume +7% Currency -2% Price -2% Portfolio 0% Key growth products combined up by 16% year on year Q3'17 Q3'18 EBITDA benefited from good operating performance as well as a payment
Slide 10: Q3 2018 – Crop Science's First Quarter with Full Contribution from the Acquired Business
Q3 2018 – Crop Science’s First Quarter with Full Contribution from the Acquired Business Sales in € million; ∆% yoy, Fx & portfolio adj. -10% 3,733 Volume -11% Currency -3% Price +1% Portfolio +96% 2,031 2,199 334 91 Fx & portfolio adj. sales negatively impacted by special PY effects in Brazil and d
Slide 11: Q3 2018 – Consumer Health with Positive Sales Development
Q3 2018 – Consumer Health with Positive Sales Development Sales in € million; ∆% yoy, Fx & portfolio adj. 1,320 +3% 1,297 Volume +4% Currency -4% Price -1% Portfolio -1% All regions contributing to topline growth with APAC standing out at +9% Q3'17 Q3'18 EBITDA Strong performance of Nutritionals in
Slide 12: Q3 2018 – Animal Health with Soft Quarter due to Phasing
Q3 2018 – Animal Health with Soft Quarter due to Phasing Sales in € million; ∆% yoy, Fx & portfolio adj. 359 Volume -13% Currency -2% -14% 304 Price -1% Portfolio ±0% Sales in North America and EMEA declined; in NA due to shifts in demand from Q3 into Q2 and in Europe due to challenging environment
Slide 13: Q3 2018 P&L: Key Developments
Q3 2018 P&L: Key Developments P&L Q3 2017 Q3 2018 € million € million €3,131m - divestiture gain of ~€3.9bn EBITDA before special items 2,204 2,202 partially offset by expenses mainly Special items (BASF divestment) - 3,935 related to Monsanto acquisition Special items (others) -235 -804 Reported EB
Slide 14: Net Financial Debt Further Reduced
Net Financial Debt Further Reduced Strong Commitment to De-lever in € million Net financial debt 44,697 7,148 36,524 ~36,000 1) 730 241 Net Financial Bridge Commercial Other Financial Net Financial Net Financial Debt Financing Paper Liabilities Debt Debt 30.06.18 30.09.18 31.12.18e 1) At closing rat
Slide 15: Pro-forma Core EPS at ~7€ for Fiscal Year 2018
Pro-forma Core EPS at ~ 7€ for Fiscal Year 2018 Illustrative pro forma 2018 calculation showing 5% accretion of Monsanto Major assumptions Pro-forma calculation for 2018 As of January 1, 2018 ~ +5% Monsanto included and step-up fixed assets ~0.9 Synergies partially included Divestments to BASF ~2.2
Slide 16: Further Breakdown Pro-Forma cEPS 2018 to Adj. EBITDA by Segment 2018
Further Breakdown Pro-Forma cEPS 2018 to Adj. EBITDA by Segment 2018 GROUP pro-forma 2018 SEGMENTS Core EPS ~€6.70 Adj. EBITDA 2017a Comments Pro-forma 2018e Pharma €5.7bn Low-single-digit % decline ~€5.6bn No. of shares 980 million Consumer Health €1.2bn Mid-single-digit % decline ~€1.2bn Core Net
Slide 17: Investor Conference Call Q3 2018 Results
Investor Conference Call /////////// Q3 2018 Results November 13, 2018 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 18: Investor Relations Contacts
Contacts Investor Bayer Investor Relations Relations /////////// Phone: +49-214-30-72704 E-Mail: ir@bayer.com www.investor.bayer.com
Slide 19: Back-up
Investor Conference Call /////////// Back-up
Slide 20: 9M 2018 P&L: Key Developments
9M 2018 P&L: Key Developments P&L 9M 2017 9M 2018 €2,735m - divestiture gain of ~€3.9bn € million € million partially offset by expenses mainly EBITDA before special items 7,505 7,433 related to Monsanto acquisition Special items (BASF divestment) - 3,936 Special items (other) -402 -1,201 Reported E
Slide 21: 2018 Guidance for Key Pharma Products
2018 Guidance for Key Pharma Products Product Guidance FY 2018 (Fx adjusted) Xarelto ~10% growth vs. 2017 Eylea Mid-teens-% growth vs. 2017 Xofigo High-single-digit-% decline vs. 2017 Stivarga Mid-single digit-% growth vs. 2017 Adempas >20% growth vs. 2017 Kogenate / Kovaltry High-single-digit-% dec
Slide 22: Coming Events
Coming Events Coming Events Capital Markets Day in London on December 5, 2018 FY/Q4 2018 Investor Conference Call on February 27, 2019 Q1 2019 Investor Conference Call on April 25, 2019 Annual Stockholders’ Meeting 2019 on April 26, 2019 Q2 2019 Investor Conference Call on July 30, 2019 Q3 2019 Inve