Bayer Ag · XETR:BAYN
Bayer — Investor Day (December 2018)
19 slides from Bayer's investor day presentation, Dec 5, 2018
Slide 1: Delivering Value Creation
Delivering Value Creation /////////// Capital Markets Day London, December 5, 2018 Werner Baumann CEO Bayer AG
Slide 2: Disclaimer
Disclaimer Cautionary Statements Regarding Forward-Looking Information This presentation contains forward-looking statements. A forward-looking statement is any statement that does not relate to historical facts and events, but rather reflects Bayer’s current beliefs, expectations and assumptions re
Slide 3: 2018: Progress Across all Divisions
2018: Progress Across all Divisions Delivering on Guidance Despite Headwinds Group 2018 on track Value crystallization of Covestro stake Status of Glyphosate litigation Net financial debt at ~€36bn by end of 2018, ~€3bn ahead of plan Crop Science Pharmaceuticals Consumer Health Growth ahead of compe
Slide 4: We are Well-Positioned to Deliver Significant Value Creation
We are Well-Positioned to Deliver Significant Value Creation A global leader Leveraging our core Science for a better life in Health & Nutrition competencies Address societal needs and benefit from Well-positioned to shape the future Capture long-term, above-GDP growth global megatrends of our indus
Slide 5: Global Megatrends in Health & Nutrition
Global Megatrends in Health & Nutrition Attractive Macro Drivers of Our Businesses Aging Population Growing Population Pressure on Ecosystems People 60+ +2.2bn +50% -20% Megatrends more than people1 through -17% doubling1 more food and feed 2050 required to meet Harvest losses from 2016 2050 growing
Slide 6: Our Markets Have Highly Attractive Characteristics
Our Markets Have Highly Attractive Characteristics Favorable Industry Environment Market Size 2017 Characteristics Crop Science ~ €90bn1 Secular above-GDP growth trend Highly regulated, innovation- driven markets Pharmaceuticals ~ €870bn2 High market profitability Ability to achieve leading position
Slide 7: We are a Global Leader in Health & Nutrition
We are a Global Leader in Health & Nutrition Well-Positioned Across Our Businesses ~€45bn 2018 Pro-forma Sales1 Crop Science Pharmaceuticals Consumer Health ~€19bn / ~43% of Group ~€17bn / ~38% of Group ~€5bn / ~12% of Group #1 Position #2 Position in Cardiovascular #2 Position Growing ahead of comp
Slide 8: Transformation into a Leader in Health & Nutrition
Transformation into a Leader in Health & Nutrition – Next Phase to Deliver Future Value Creation Past Today Pharma- Crop ceuticals, Biological Crop- Polyure- Science Products HealthCare Science thanes, Coatings, Fibres Group Consumer Care, Profile Diagnostics Animal Health Polymers Wolff Basic and F
Slide 9: Five Levers to Drive Value Creation
Five Levers to Drive Value Creation Through our leading positions in Health & Nutrition What We Do we create value for our shareholders and society Our Value Levers Are Designed to Deliver World-class Drive Disciplined Renowned Highest Attractive innovation operational capital corporate sustainabili
Slide 10: Innovation Will Deliver Sustained Growth
World-class innovation Innovation Will Deliver Sustained Growth Our Reconfigured Innovation Approach Crop Science Pharmaceuticals Consumer Health Meet required yield increases Underlying unmet medical need and Brand life cycle management to maintain Major Need for a responsible and added net clinica
Slide 11: We Will Accelerate Sourcing Innovation Externally
World-class innovation We Will Accelerate Sourcing Innovation Externally Loxo Oncology – an Example for Instant Access to Innovation in a Well-Understood Therapeutic Area 1 Overview Strategic Highlights Larotrectinib is a novel tumor-agnostic targeted cancer therapy High unmet medical need Demonstra
Slide 12: Advancing Digital Transformation Across all Businesses
World-class innovation Advancing Digital Transformation Across all Businesses 2 Group-wide Digital Transformation Advancing Digital / Evolution of Digital Farming Drive additional growth & efficiency Digitize Improve customer experience, customer add digital products and services experience Example
Slide 13: Differentiated Approach to Co-create Disruptive Technologies
World-class innovation Differentiated Approach to Co-create Disruptive Technologies With LEAPS, we are Driving Disruptive Technologies 3 Approach Current key ventures Addressable market Focus on game-changing technologies to address fundamental Access to gene challenges and shift the core $25bn1 edi
Slide 14: Bayer 2022 Synergy & Efficiency Programs
Drive operational excellence Bayer 2022 Synergy & Efficiency Programs Realization of Crop Crop Science Science sales and cost synergies Re-alignment of R&D activities towards external innovation / Targeted overall Pharmaceuticals Adjustment of the contribution of ~€2.6bn hematology manufacturing foo
Slide 15: We Have Clear Priorities for Capital Allocation
Disciplined capital allocation We Have Clear Priorities for Capital Allocation Focus on Shareholder Return, Deleveraging, and Innovation Disciplined capital allocation Shareholder Return Free Cash Flow1 Targeted ~€23bn 2019e-2022e Deleveraging Divestment proceeds Innovation & Acquisitions 1 Free cas
Slide 16: Bayer Stands for Trust, Reliability and Quality
Renowned corporate brand Bayer Stands for Trust, Reliability and Quality Driving Brand Awareness and Elevating Perception Value-accretive umbrella brand2 Leading product brands Aided awareness well above industry norms1 Crop Science Bayer brand accounts for ~30% of product brands’ trustworthiness En
Slide 17: Group Targets - Value Creation from Strengthened Base
Group Targets - Value Creation from Strengthened Base Triple leverage 2019 CAGR 2018e1 IndicativeGuidance Target 2022 2018-2022 Sales €bn ~44.6 ~46 ~52 ~4% EBITDA €bn ~11.5 ~12.2 ~16 ~9% before special items Core EPS € ~6.7 ~6.8 ~10 ~10% FCF €bn ~4.12 ~3-4 ~8 ~18% 2022 targets at constant currencies
Slide 18: Key Priorities
Key Priorities Enhance Our Operating Performance and Drive Value Creation 1 Achieve operational targets 2 Integrate Crop Science and leverage #1 industry platform Continue strengthening of internal pipeline and intensify external sourcing 3 of innovative technologies and assets 4 Performance improve
Slide 19: Delivering Value Creation
Delivering Value Creation /////////// Capital Markets Day London, December 5, 2018 Werner Baumann CEO Bayer AG