Slide 1: Investor Conference Call Q2 2018 Results
Investor Conference Call /////////// Q2 2018 Results September 05, 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. Monsanto Acquisition & Business Update Q2 2018 2. Financials Q2 2018 Agenda 3. Outlook FY 2018 Werner Baumann, CEO 3 /// Q2 2018 Investor Conference Call
Slide 4: Highlights
Highlights Monsanto acquisition successfully closed on June 7th Integration started after “Hold Separate“ has ended* on August 16th Bayer (stand-alone) Q2 performance on track to meet previous FY 2018 targets 2018 guidance now reflects impact of Monsanto acquisition Expected EBITDA contribution from
Slide 5: New Crop Science – A Game Changer in the Industry
New Crop Science – A Game Changer in the Industry The leading agriculture company in the world with … Excellent product portfolio and leading innovation capabilities Most advanced digital platform Very strong and experienced team Committed to shape agriculture to benefit farmers and consumers Strong
Slide 6: Divisional Highlights
Divisional Highlights Pharmaceuticals Crop Science Pharma on track to deliver FY 2018 guidance Q2 pro forma sales grew 10% as Brazil Crop Protection Key growth products overall continue to drive performance business normalizes and Corn business improves Further differentiation of Xarelto supported b
Slide 7: Agenda
1. Monsanto Acquisition & Business Update Q2 2018 2. Financials Q2 2018 Agenda 3. Outlook FY 2018 Wolfgang Nickl, CFO 7 /// Q2 2018 Investor Conference Call
Slide 8: Q2 2018 – On track for FY guidance
Q2 2018 – On track for FY guidance Sales EBITDA Core EPS in € million; currency & portfolio adj. before special items; in € million cont. operations; in € +9% 9,481 2,335 2,247 +4% +1% 8,714 543 70 1.52 1.54 Q2'17 Q2'18 Q2'17 Q2'18 Q2'17 Q2'18 8 /// Q2 2018 Investor Conference Call Monsanto contribu
Slide 9: Q2 2018 – Pharmaceuticals Driven by Key Growth Products
Q2 2018 – Pharmaceuticals Driven by Key Growth Products Sales in € million; ∆% yoy, Fx & portfolio adj. 4,304 +3% 4,217 Volume +6% Currency -5% Price -3% Portfolio 0% Key growth products up > 13% by >year 13%on year year on year Q2'17 Q2'18 EBITDA before special items, in € million; ∆% yoy investmen
Slide 10: Q2 2018 – Crop Science with Sales and Profit Improvement
Q2 2018 – Crop Science with Sales and Profit Improvement Sales in € million; ∆% yoy, Fx & portfolio adj. 3,011 Volume +22% Currency -7% +21% 543 2,163 Price -1% Portfolio +25% 468 Key growthEBITDA Monsanto products > 13% year contribution on year limited due to timing of closing Q2'17 Q2'18 EBITDA b
Slide 11: Understanding the Seasonality of Monsanto's Business
Understanding the Seasonality of Monsanto‘s Business Sales EBITDA before special items Cash Flow ~60% ~40% ~80% ~20% ~ minus 20% ~ plus 120% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 June 7th June 7th June 7th 2014 2015 2016 2017 11 /// Q2 2018 Investor Conference Call
Slide 12: Q2 2018 – Consumer Health Challenging
Q2 2018 – Consumer Health Challenging Sales in € million; ∆% yoy, Fx & portfolio adj. 1,542 Volume -2% Currency -7% -1% 1,413 Price +1% Portfolio 0% Late start to the allergy and suncare seasons determined Claritin and Key growth products > 13% year on year Coppertone performance in the US, APAC wit
Slide 13: Q2 2018 – Animal Health with Strong Sales and Profit Increase
Q2 2018 – Animal Health with Strong Sales and Profit Increase Sales in € million; ∆% yoy, Fx & portfolio adj. 450 +8% 453 Volume +10% Currency -7% Price -2% Portfolio 0% Strong volume driven by sales increase, partially due to phasing Q2'17 Q2'18 from Q3 into Q2 EBITDA before special items, in € mil
Slide 14: Q2 2018 P&L: Key Developments
Q2 2018 P&L: Key Developments P&L Q2 2017 Q2 2018 € million € million Mainly related to Crop Science EBITDA before special items 2,247 2,335 (€278m, ca. 50% related to PPA) Special items -112 -318 Reported EBITDA 2,135 2,017 Depreciation & Amortization -672 -666 Amortization mainly resulting from Re
Slide 15: Net Financial Debt at Year End now forecasted at ~€37bn
Net Financial Debt at Year End now forecasted at ~€37bn Strong Commitment to De-lever Gross financial debt 730 246 51,774 in € million Net financial debt 13,608 44,697 5,652 ~37,000 12,762 13,811 4,965 1.650 Gross Financial EUR-Bonds USD-Bonds Monsanto Bridge Commercial Other Financial Gross Financi
Slide 16: Monsanto – Preliminary Purchase Price Allocation (PPA)
Monsanto – Preliminary Purchase Price Allocation (PPA) in € billion 50 40 20.1 17.9 30 27.1 48.0 20 7.2 10 1.1 1.6 0.2 23.0 00 Consideration Existing assets Existing Intangible Step-up Step-up Step-down Step-up Goodwill transferred without goodwill liabilities assets fixed assets inventories liabili
Slide 17: Agenda
1. Monsanto Acquisition & Business Update Q2 2018 2. Financials Q2 2018 Agenda 3. Outlook FY 2018 Werner Baumann, CEO 17 /// Q2 2018 Investor Conference Call
Slide 18: FY 2018 Outlook including Monsanto as of June 7
FY 2018 Outlook including Monsanto as of June 7 Monsanto Core EPS contribution impacted by typical seasonality and technical effects 2017 Group Forecast 2018 Group Forecast 2018 (at closing rates of Jun. 30, 2018) (currency adjusted) Sales €35.0bn >€39.0bn Mid-single-digit % increase (currency and p
Slide 19: 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 20: Dividend Payment for 2018
Dividend Payment for 2018 Dividend per share proposal at least on prior-year level based on: Strong Cash Flow generation capability of the combined entity Lower than originally expected net debt level of ~€37bn at year end 2018e Exciting future growth prospects 20 /// Q2 2018 Investor Conference Cal
Slide 21: Coming Events
Coming Events Coming Events Bayer Q3 2018 results on 13 November, 2018 Capital Markets Day in London on 5 December, 2018 21 /// Q2 2018 Investor Conference Call
Slide 22: Investor Relations
Contacts Investor Bayer Investor Relations Relations /////////// Phone: +49-214-30-72704 E-Mail: ir@bayer.com www.investor.bayer.com
Slide 23: Back-up
Investor Conference Call /////////// Back-up
Slide 24: 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 Mid-single-digit % decline vs. 2017 Stivarga ~10% growth vs. 2017 Adempas >20% growth vs. 2017 Kogenate / Kovaltry High-single-digit-% decline vs. 2017 (
Slide 25: Group Outlook for FY 2018 including Monsanto Acquisition
Group Outlook for FY 2018 including Monsanto Acquisition Outlook depends on specific planning assumptions outlined in the Annual Report 2017 Group Forecast 2018 >€39bn As reported * (prev. <€35bn) Sales €35.0bn Mid-single-digit % increase Portfolio & currency adjusted (prev. low- to mid-single-digit
Slide 26: FY 2018 – Guidance by Segment
FY 2018 – Guidance by Segment Outlook depends on specific planning assumptions outlined in the Annual Report Sales ∆ % yoy Fx and portfolio adj., EBITDA before special items, Continuing operations Adj. EBITDA Sales Closing rates as of Jun. 30, 2018 Currency-adjusted Low-single-digit % increase to >€