Slide 1: Investor Conference Call FY/Q4 2020 Results
Investor Conference Call /////////// FY/Q4 2020 Results February 25, 2020 Werner Baumann, CEO Wolfgang Nickl, CFO
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: FY/Q4 2020 Results: Business Update
FY/Q4 2020 Results Business Update /////////// Werner Baumann, CEO
Slide 4: Strong response to Covid-19, while setting stage for future growth
Strong response to Covid-19, while setting stage for future growth Status Quo 1 Health for all, hunger for none 2 Resilient businesses 3 Accelerate our transformation 4 Bayer FY/Q4 2020 Investor Conference Call
Slide 5: Updated guidance achieved
Updated guidance achieved Including currencies1 Outlook based on month-end September rates FY 2020 Sales €41bn-€42bn €41bn-€42bn €41.4bn ✓ EBITDA margin (before special items) ~~ 28% 28% 27.7% ✓ Core EPS €6.30 – €6.50 €6.39 ✓ Free cash flow €0.5bn-€1.0bn² €1.3bn ✓ Net financial debt ~€33bn €30bn ✓ 1
Slide 6: Crop Science with solid operational performance, overshadowed by currency impact
Crop Science with solid operational performance, overshadowed by currency impact Sales Volume Currency In million €, ∆% yoy, cpa. + 2% 6 - % +1% 19,832 18,840 Price Portfolio - 0% 0% Strong cpa growth in LATAM (+9%) and APAC (+9%) while business in North America declined (-4%) Fungicides (+9%) a
Slide 7: Pharma: Bottom line protected with tight cost management
Pharma: Bottom line protected with tight cost management Sales Volume Currency In million €, ∆% yoy, cpa. + 5% - 3% -2% 17,962 17,243 Price Portfolio COVID-19 impacted elective treatments, primarily - 6% 0% IUD franchise (-9%), Eylea (0%) and Radiology (-5%) – sequential improvement in 2H2020 Xa
Slide 8: Consumer Health with accelerated growth momentum and margin expansion
Consumer Health with accelerated growth momentum and margin expansion Sales Volume Currency In million €, ∆% yoy, cpa. + 3% - 4% 5,462 +5% 5,054 Price Portfolio Strong sales cpa growth across all regions + 2% - 8% Nutritionals (+23%) benefit from increased focus on preventive health solutions FY
Slide 9: 2021: Further build momentum and accelerate transformation
2021: Further build momentum and accelerate transformation Status Quo 1 Build on strengths 2 Focus on execution 3 Navigate macro dynamics 9 Bayer FY/Q4 2020 Investor Conference Call
Slide 10: FY/Q4 2020 Results: Financials & Outlook
FY/Q4 2020 Results Financials & Outlook /////////// Wolfgang Nickl, CFO
Slide 11: Robust performance in a challenging year
Robust performance in a challenging year Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy, cpa. In million €, before special items In €, Cont. Operations In million € Negative currency effect of €1,941 million Negative currency effect of €741 million Core tax rate: 23.7% versus 22.5% in 201
Slide 12: EPS impacted by impairment charges and litigation
EPS impacted by impairment charges and litigation in € -9.31 -2.50 Impairment -7.03 on Intangibles 6.39 4.17 Impairment -2.28 on Goodwill -10.68 -15.85 -14.63 5.17 3.72 0.48 Core EPS Depreciation & Impairment Special items Special items Tax effect EPS Discontinuing EPS (total) EPS (total) FY'2020 Am
Slide 13: Strong reduction of net financial debt mainly due to AH divestment
Strong reduction of net financial debt mainly due to AH divestment in € million 45,000 -391 40,000 3,176 -178 -5,391 35,000 41,625 -5,663 39,018 30,000 34,068 -530 30,041 5,000 0 Gross Financial Bonds Liabilities to Other Financial Gross Financial Cash Money Market Covestro / Net Financial Net Finan
Slide 14: Roughly 80% of our net sales are in foreign currencies
Roughly 80% of our net sales are in foreign currencies North America: 35% (of total sales) EMEA: €2.0bn 31% (of total sales) +4.7% cpa 14% 20% of total sales in € APAC: 20% (of total sales) €14.4bn €1.7bn 14% €0.7bn €1.9bn 27% 59% +2.6% cpa 32% +6.1% cpa +8.9% cpa €3.9bn €8.4bn 9% €12.9bn €4.1bn 23%
Slide 15: Seasonality of our business
Seasonality of our business Global sales: €41.4bn1 Q1 Q2 Q3 Q4 33% EMEA €12.9bn1 23% 21% 23% 37% North 27% America 21% €14.4bn1 15% 33% 29% Latin America 20% 18% €5.9bn1 Asia / 25% 26% 25% 24% Pacific €8.3bn1 1 Full-Year 2020; percentages show proportion of regional full-year 2020 sales per quarter
Slide 16: Looking ahead: Currency development expected to weigh on 2021
Looking ahead: Currency development expected to weigh on 2021 50.0% 40.0% FX – Rates 2020 30.0% % deviation vs. year-end rates 2019 20.0% 10.0% 0.0% Q1 Q2 Q3 Q4 -10.0% 44 Impact on net sales 2020 (in mio.€) vs. PY -754 -1.017 -214 Q1 2020 Q2 2020 Q3 2020 Q4 2020 E 2021E* ~ -600 ~ -1.000 ~ -200 ~ -10
Slide 17: Group Outlook 2021
Group Outlook 2021 At constant currencies1 Expected currency impact² Outlook 2021 Sales €42bn - €43bn ~ -€2bn EBITDA margin ~ -70bps ~ 27% (before special items) Core EPS €6.10 – €6.30 ~ -€50ct Free cash flow ~ -€3bn - -€4bn3 No major impact Net financial debt ~ €36bn - €37bn ~ -€1bn 1 Reflects our
Slide 18: Investor Conference Call FY/Q4 2020 Results
Investor Conference Call /////////// FY/Q4 2020 Results February 25, 2020 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 19: Q4'20: Increase in core EPS despite substantial currency headwinds
Q4’20: Increase in core EPS despite substantial currency headwinds Sales EBITDA * Core EPS Free Cash Flow In million €, ∆% yoy, cpa. In million €, before special items In €, Cont. Operations In million € Negative currency effect of -€1,017 million Negative currency effect of -€565 million Core finan
Slide 20: Q4'20: Segment Overview
Q4’20: Segment Overview Crop Science Pharma Consumer Health In million €, ∆% yoy, cpa. In million €, ∆% yoy, cpa. In million €, ∆% yoy, cpa. 4,652 +4% 4,682 +1% 4,476 1,337 +3% 4,176 1,250 Sales Q4'19 Q4'20 Q4'19 Q4'20 Q4'19 Q4'20 before special items 849 -30% +10% -14% EBITDA 1,539 299 1,401 258 59
Slide 21: 2021: Divisional guidance
2021: Divisional guidance Guidance at constant currencies Sales EBITDA- Est. Market EBITDA- Sales Growth margin Division 2020 Growth 2021 margin 2021 Drivers (+/-) 2021 2020 (before special items ) (cpa) (before special items) Growth in herbicides and fungicides Crop Strong commodity prices, more US
Slide 22: 2021: Guidance for other Group KPIs
2021: Guidance for other Group KPIs Guidance at constant currencies* Special items (EBITDA) ~ €1.5 bn Depreciation and amortization (clean) ~ €4.2 bn of which for intangible assets (clean) ~ €2.3 bn Core financial result ~ - €1.6 bn Core tax rate ~ 23% Reconciliation (cEBITDA) ~ - €200m to -€300m *e
Slide 23: Re-Cap: Full-Year FX sensitivities for Bayer Group
Re-Cap: Full-Year FX sensitivities for Bayer Group Impact of major currencies Sales cEBITDA (after hedging) FX Basket -1% change1 FX Basket -1% change1 (in %) (in Mio. €) (in %) (in Mio. €) USD ~40% ~140 ~25% ~25 BRL ~10% ~35 ~15% ~10 CNY ~10% ~35 ~15% ~15 JPY ~5% ~20 ~5% ~5 Other ~35% ~120 ~40% ~45
Slide 24: Q4'20: Key KPIs by division
Q4’20: Key KPIs by division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million] Q4'19 Q4'20 Q4'19 Q4'20 Q4'19 Q4'20 Q4'19 Q4'20 Q4'19 Q4'20 Sales 4,652 4,176 4,682 4,476 1,337 1,250 79 93 10,750 9,995 Sales by region: Europe / Middle East / Africa 581 545 1,847 1,918 479 45
Slide 25: FY 2020: Key KPIs by division
FY 2020: Key KPIs by division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million] FY'19 FY'20 FY'19 FY'20 FY'19 FY'20 FY'19 FY'20 FY'19 FY'20 Sales 19,832 18,840 17,962 17,243 5,462 5,054 289 263 43,545 41,400 Sales by region: Europe / Middle East / Africa 4,170 4,053 6,918
Slide 26: Q4'20: Key KPIs Bayer Group
Q4’20: Key KPIs Bayer Group Q4 2019 Q4 2020 % y-o-y 1 Net Sales 10,750 9,995 -5 / +1% EBITDA before special items 2,476 2,392 -3.4% Special items -482 -368 Reported EBITDA 1,994 2,024 Depreciation & Amortization -1,606 -509 -68.3% Reported EBIT 389 1,515 Amortization and impairment losses / loss rev
Slide 27: FY 2020: Key KPIs Bayer Group
FY 2020: Key KPIs Bayer Group FY 2019 FY 2020 % y-o-y Net Sales 43,545 41,400 -5 / +1% 1 Mainly related to litigations EBITDA before special items 11,474 11,461 -0.1% Special items -1,945 -14,371 Reported EBITDA 9,529 -2,910 Mainly related to non-cash impairment on Crop Depreciation & Amortization -
Slide 28: Pharmaceuticals Division: Overview Development Portfolio (as of February 2021)
Pharmaceuticals Division: Overview Development Portfolio (as of February 2021) Phase I (26) Phase II (21) Phase III (8) Selitrectinib (TRK Inhibitor, formerly LOXO-195) Urothelial Cancer /// Rogaratinib (pan-FGFR Inhibitor) Prostate Cancer (mHSPC) /// Darolutamide (AR-Inhibitor) Rogaratinib (pan-FGF