Slide 1: Q3 2023 Investor Webinar
Q3 2023 //////////////// Investor Webinar November 8th, 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: Bill Anderson, CEO
BAYER: Bill Anderson CEO
Slide 4: Wolfgang Nickl, CFO
BAYER: Wolfgang Nickl CFO
Slide 5: Q3 Below Prior Year As Expected
Q3 Below Prior Year As Expected NET SALES EBITDA CORE EPS FREE CASH FLOW in m€, ∆% yoy in m€, in €, Cont. Operations in m€ before special items 0% cpa (-8% rep) -31% -6% 11,281 10,342 1,738 2,451 1,626 -66% 1,685 1.13 21.7% 16.3% 0.38 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Currency headwind
Slide 6: Full Year Outlook Confirmed
Full Year Outlook Confirmed FY 2023e Estimated FX in € at constant currencies 1 Impact 2 Key Assumptions Net Sales 48.5bn – 49.5bn -1.7bn • Updated estimated FX impact on EBITDA before special items, effect on other KPIs not EBITDA material 11.3bn – 11.8bn -0.2bn (before special items) • Robust busi
Slide 7: Rodrigo Santos, Crop Science
BAYER: Rodrigo Santos Crop Science
Slide 8: Q3: Crop Science Core Business Growth of 9% Exceeding Glyphosate Decline
Q3: Crop Science Core Business Growth of 9% Exceeding Glyphosate Decline Net Sales EBITDA Volume m€, ∆% yoy m€, before special items EBITDA Margin before special items +25% +1% cpa Price (-7% rep) -24% 629 4,692 4,365 Currency -5% 13.4% -0.5% Portfolio -3% -24 Q3’22 Q3’23 Core Business Glyphosate Cu
Slide 9: Q3: Corn S&T, Fungicides and Soybean S&T Compensate for Glyphosate Decline
Q3: Corn S&T, Fungicides and Soybean S&T Compensate for Glyphosate Decline Q3 2023 Sales by Strategic Business Entity Key Drivers m€ ∆% cpa yoy € 835 +21% Corn S&T: strong double-digit growth across all Corn Seed & Traits regions driven by price, particularly in LATAM Fungicides € 691 +16% Fungicide
Slide 10: FY Outlook Confirmed: Growth in Every Region in Core Business
FY Outlook Confirmed: Growth in Every Region in Core Business, Powered by Innovation-Driven Pricing Crop Science FY 2023 Outlook Sales Growth 1 EBITDA Margin 1 (cpa) (before special items) (revised Aug 2023) Crop Science ~ -5% ~ 21% Core +5 to 7% Business Glyphosate -45 to -50% Sales growth rates ∆%
Slide 11: Glyphosate-Based Herbicides Sales Reverting to 2020 Levels
Glyphosate-Based Herbicides Sales Reverting to 2020 Levels 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 2023E Chinese Generic Glyphosate Technical Ba
Slide 12: Expected 2024 Crop Science Market Dynamics
Expected 2024 Crop Science Market Dynamics U.S. Corn & Soybean Stocks-to-Use Ratios Pressure Commodity Prices1 U.S. Stocks-to-Use Ratios 30% • Dec. 2023 corn contracts ~$4.78/bu2; >20% Corn 20% Soybeans 15% decline vs. one year ago 10% 10% • Nov. 2023 soybean contracts ~$12.92/bu2; 6% 5% ~6% decline
Slide 13: Stefan Oelrich, Pharmaceuticals
Stefan Oelrich Pharmaceuticals RESTRICTED
Slide 14: Q3: Strong US Sales Growth, Headwinds in China
Q3: Strong US Sales Growth, Headwinds in China; Sequential Improvement in Profitability as Guided Net Sales EBITDA Volume m€, ∆% yoy m€, before special items +1% EBITDA Margin before special items 0% cpa Price (-8% rep) -1% -9% Currency 4,955 1,573 -7% 4,538 1,438 Portfolio 31.7% 31.7% -1% Q3'22 Q3'
Slide 15: Q3: Launch Assets, Eylea and Radiology Business With Ongoing Strong Performance
Q3: Launch Assets, Eylea and Radiology Business With Ongoing Strong Performance, Offsetting Softness in Mature Portfolio Q3 2023 Sales by Key Products Key Drivers m€ ∆% cpa yoy Xarelto € 1,052 +0% Xarelto: solid volume growth in major markets offset by UK pricing and China headwinds and lower US roy
Slide 16: Progressing Our Pipeline With Differentiated Assets Addressing High Unmet Medical Need
Progressing Our Pipeline With Differentiated Assets Addressing High Unmet Medical Need Major newsflow since Q2 2023 Earnings Release on August 8 Kerendia: Start of three additional Phase III studies (MOONRAKER) vascular+ Cardio- • Extending the heart failure (HF) program with finerenone Asundexian:
Slide 17: Several Pipeline Milestones Expected in Upcoming Quarters
Several Pipeline Milestones Expected in Upcoming Quarters Major R&D Milestones Phase I Phase II Phase III Submission / Approval Q3 Publication Cong. HF rAAV Gene Therapy: Anti-a2 AP Thrombolysis : (Nov 06, 2023) HY2 Primary compl. Phase I Start Phase IIa (SIRIUS) 2023e1 PD rAAV Gene Therapy: Zabedos
Slide 18: Heiko Schipper, Consumer Health
Heiko Schipper Consumer Health
Slide 19: Q3: Consumers Continue to Acknowledge Our Science-Based Health Solutions
Q3: Consumers Continue to Acknowledge Our Science-Based Health Solutions Net Sales EBITDA Volume m€, ∆% yoy m€, before special items -7% EBITDA Margin before special items +2% cpa Price (-9% rep) +8% -7% Currency 1,548 336 -10% 1,410 313 Portfolio 21.7% 22.2% -1% Q3'22 Q3'23 Q3'22 Q3'23 Consumer Hea
Slide 20: Q3: Innovation in Dermatology, Together with Active Pricing, Driving Growth
Q3: Innovation in Dermatology, Together with Active Pricing, Driving Growth Q3 2023 Sales by Category Key Drivers m€ ∆% cpa yoy Nutritionals: Lower demand in particular for Elevit due € 334 -1% to temporarily low birth rates in China compared with Nutritionals previous years € 325 +9% Dermatology: B
Slide 21: Digital Transformation Delivers Value for Our Business and Consumers
Digital Transformation Delivers Value for Our Business and Consumers Impactful Digital Accelerating Tapping into Upskilling our Engagement eCommerce Digital Therapeutics Operations 6X increase in 4X of Sales personalized creatives Key addition to our Building a high-performing portfolio of care pr
Slide 22: Bill Anderson, CEO
BAYER: Bill Anderson CEO
Slide 23: Advancing Our Strategic Review
Advancing Our Strategic Review Option Space Assessment Criteria ? Analyzing Removed from consideration ? Separation of CS Value creation One-time costs & dis- ? Separation of CH synergies Implementing Tax leakage Structure ? Maintaining Three Divisions Cash flow / leverage Operational effectiveness
Slide 24: Acting on Three Priorities
Acting on Three Priorities Focusing on Advancing Leading Strengthening the Mission Innovation Performance 24 Bayer Q3 2023 Investor Webinar /// November 8th, 2023
Slide 25: Dynamic Shared Ownership
Dynamic Shared Ownership What is it? How do you do it? What does it deliver? Radical realignment from Everyone working in small teams Doubling of speed in customer hierarchical departments and with customer / product focus, response, science and product internal focus to customer and working in 90-d
Slide 26: Fundamental System Change versus Traditional Restructuring
Fundamental System Change versus Traditional Restructuring Traditional Restructuring System Change Streamlined Leadership BoM Management & Coordination … … … … … … Org. Principle Hierarchical bureaucracy Customer- and product-centered Change Eliminates jobs, not work, often at operational level Remo
Slide 27: Acting on Three Priorities
Acting on Three Priorities Focusing on Advancing Leading Strengthening the Mission Innovation Performance Leadership and org changes Strong momentum in pipeline and Supervisory Board proposing launch assets changes to Board of Management 90-day Scaling new system across Bayer Progress long-term ince
Slide 28: Q&A Session
Q&A Session ////////////////
Slide 29: Q3 2023 Appendix
Q3 2023 //////////////// Appendix November 8th, 2023
Slide 30: 9M: Group Performance
9M: Group Performance NET SALES EBITDA CORE EPS FREE CASH FLOW in m€, ∆% yoy in m€, in €, Cont. Operations in m€ before special items -8% (-3% cpa) 38,739 -21% 35,775 11,051 -31% 9M'22 9M'23 8,683 6.59 1,691 4.55 28.5% 24.3% -2,950 9M'22 9M'23 9M'22 9M'23 9M'22 9M'23 Currency headwind Currency headw
Slide 31: FY Outlook: Other Group KPIs
FY Outlook: Other Group KPIs FY 2023e in € at constant currencies 1 Special Items Key Assumptions ~ - €1.0bn (EBITDA) • Special items (EBITDA) primarily driven by ongoing restructuring programs Core Depreciation ~ - €1.6bn • Core depreciation: Formerly guided for “as depreciation and amortization (c
Slide 32: FY Outlook: Divisions
FY Outlook: Divisions Sales Growth EBITDA Margin 2023e 2023e cpa 1 before special items 1 ~ -5% ~ 21% Crop Science ~ 0% ~ 28% Pharmaceuticals ~ +5% ~ 23% Consumer Health 32 Bayer Q3 2023 Investor Webinar /// November 8th, 2023 1 Reflects our 2023 plan at the average actual currencies for 2022; cpa:
Slide 33: 9M: Core Business Grows 6%; Glyphosate Sales Decline ~€2.1bn
9M: Core Business Grows 6%; Glyphosate Sales Decline ~€2.1bn Net Sales EBITDA Volume In m€ m€, before special items -3% EBITDA Margin before special items -6% cpa (-10% rep) -34% Price -4% 19,600 6,047 17,640 Currency 3,968 -2% Portfolio 30.9% 22.5% -2% 9M’22 9M’23 Core Business Glyphosate Currency
Slide 34: 9M: Glyphosate Sales Decline ~50%; Corn Leads with +15% Growth
9M: Glyphosate Sales Decline ~50%; Corn Leads with +15% Growth 9M 2023 Sales by Strategic Business Entity Key Drivers m€ ∆% cpa yoy Corn Seed & € 5,335 +15% Corn S&T: growth driven by double digit % pricing Traits and volume growth in NA and APAC Fungicides € 2,564 +4% Fungicides: pricing gains, mos
Slide 35: Industry Leading Soybean Seed & Trait Platform
Industry Leading Soybean Seed & Trait Platform Upgrading the Americas with Recent XtendFlex and Intacta 2 Xtend Trait Launches #1 South America Leading Soybean soybean platform1 Platform in NA soybean trait share in soybean trait share in Brazil in 2022/23 the U.S. in 20231 Expect >10m acres of next
Slide 36: World Benchmarking Alliance Recognizes Bayer's Industry Leadership
World Benchmarking Alliance Recognizes Bayer‘s Industry Leadership Reaching Prime Status at ISS ESG with B- Rating Transformation of food systems through the application of sustainable business practices Rating: B- (formerly C+) # 2 / 44 Up from 4th in 2021 Agricultural inputs segment Prime Status F
Slide 37: 9M: Various Headwinds in China Largely Offset by Strong US Performance
9M: Various Headwinds in China Largely Offset by Strong US Performance Net Sales EBITDA Volume m€, ∆% yoy m€, before special items -0% EBITDA Margin before special items -1% cpa Price (-6% rep) -1% -12% Currency 14,397 13,502 4,440 -4% 3,923 Portfolio 30.8% 29.1% -1% 9M'22 9M'23 9M'22 9M'23 Pharmace
Slide 38: 9M: Strong Performance of Launch Assets, Eylea and Radiology
9M: Strong Performance of Launch Assets, Eylea and Radiology Largely Balancing Headwinds, Particularly on Xarelto and Adalat 9M 2023 Sales by Key Products Key Drivers m€ ∆% cpa yoy Xarelto € 3,034 -5% Xarelto: Sales decline driven by loss of exclusivity in some regions and pricing headwinds Eylea €
Slide 39: 9M: With Solid Growth, On Track to Achieve Full Year Guidance
9M: With Solid Growth, On Track to Achieve Full Year Guidance Net Sales EBITDA Volume m€, ∆% yoy m€, before special items -5% EBITDA Margin before special items +4% cpa Price (-2% rep) +9% -3% Currency 4,556 4,449 1,054 1,027 -6% Portfolio 23.1% 23.1% -0% 9M'22 9M'23 9M'22 9M'23 Consumer Health Oper
Slide 40: 9M: Solid Growth Compared to Strong 2022
9M: Solid Growth Compared to Strong 2022 9M 2023 Sales by Category Key Drivers m€ ∆% cpa yoy € 1,057 -4% Nutritionals: Continued demand normalization on an Nutritionals overall elevated level € 1,045 +6% Allergy & Cold: High cold incidence levels especially Allergy & Cold throughout the first half o
Slide 41: Q3 2023: Core EPS to EPS Bridge
Q3 2023: Core EPS to EPS Bridge in € 0.38 -4.60 thereof -4.66 impairment Crop Science -4.02 -0.35 -0.15 +0.06 41 Bayer Q3 2023 Investor Webinar /// November 8th, 2023
Slide 42: Q3: Summary
Q3: Summary Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Sales 4,692 4,365 4,955 4,538 1,548 1,410 86 29 11,281 10,342 Sales by region: Europe / Middle East / Africa 823 788 1,829 1,772 472
Slide 43: 9M 2023: Core EPS to EPS Bridge
9M 2023: Core EPS to EPS Bridge in € 4.55 -8.50 thereof -4.35 impairment Crop Science -6.05 -0.71 +0.63 -0.32 43 Bayer Q3 2023 Investor Webinar /// November 8th, 2023
Slide 44: 9M: Summary
9M: Summary Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 Sales 19,600 17,640 14,397 13,502 4,556 4,449 186 184 38,739 35,775 Sales by region: Europe / Middle East / Afri
Slide 45: Q3 2023 Innovation Appendix
Q3 2023 //////////////// Innovation Appendix November 8th, 2023
Slide 46: Crop Science Innovation Summit Recap – NY, June 20, 2023
Crop Science Innovation Summit Crop Science Innovation Summit Recap – NY, June 20, 2023 More than Doubling our Accessible Markets by 2030 >100bn¹ EUR >200bn1 EUR 2022 Global Ag Input Market 2030 Global Ag Input Market & Related Adjacencies Crop Seed and Market Broadening our reach to Protection Trai
Slide 47: 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 CORN SEED & TRAIT Corn Disease Shield - NA 5th Generation Lepidoptera Protection Short Stature Corn – Biotech Trait3 Short Stature Corn – Breeding Approach 2nd Generation Seed
Slide 48: 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 49: Pharmaceuticals: R&D Developments
Pharmaceuticals: R&D Developments (since last update on July 31, 2023) Phase I Phase II Phase III Commercial Initiation of DGKalpha Initiation of three additional Approval of Aflibercept 8mg Inhibitor studies to extend the heart DME and nAMD in US failure program with (Regeneron) Initiation of finer
Slide 50: Pharmaceuticals: Pipeline Overview
Pharmaceuticals: Pipeline Overview1 (as of Nov 6, 2023) Phase 02 Phase I Phase II Phase III PSMA SMOL TAC (BAY 3563254) AhR Inhibitor (BAY 2416964) Regorafenib (combi Nivolumab) (BAY 734506) Darolutamide (AR Inhibitor) Solid tumors (recurrent or metastatic) Prostate Cancer (mHSPC) (ARANOTE) VVD STAT
Slide 51: Nubeqa Continues to Show Strong Uptake With Sales Nearly Doubling Again in Q3
Nubeqa Continues to Show Strong Uptake With Sales Nearly Doubling Again in Q3 Global sales development (€m, cpa growth rates) US launch performance (monthly NBRx)1 +97% 1,000 800 232 201 600 158 178 127 400 ex-US 200 US Aug-22: mHSPC approval - Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Nubeqa continue
Slide 52: Kerendia Growing Above US Market, Demonstrating Continued Launch Momentum
Kerendia Growing Above US Market, Demonstrating Continued Launch Momentum Global sales development (€m, cpa growth rates) US launch performance (monthly NBRx)1 +146% 10,000 50,000 8,000 40,000 67 66 6,000 30,000 48 52 4,000 20,000 28 ex-US 2,000 10,000 US 0 0 Oct-21 Feb-22 Apr-22 Oct-22 Feb-23 Apr-2
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