Slide 1: Cover letter to BSE for investor meet presentation
July 8, 2016 General Manager DCS - Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001 COMPANY CODE: 506285 SCRIP ID: BAYERCROP Dear Sir, Sub: Bayer CropScience Limited - Presentation at Investor/ Analyst Meet being held on July 8, 2016 Please find e
Slide 2: Investor Presentation Bayer CropScience Ltd.
Investor Presentation Bayer CropScience Ltd. July 8, 2016
Slide 3: Forward-Looking Statements
Forward-Looking Statements This website/release/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 actual future resul
Slide 4: Disclaimer
Disclaimer Bayer CropScience Limited in this presentation shall be referred to as BCSL/Company for the sake of simplification. The information contained herein has been prepared to assist prospective investors and/ or their agents in making their own evaluation of the Company and does not purport to
Slide 5: Additional information
Additional information This communication relates to a proposed offer by Bayer Aktiengesellschaft or its subsidiaries (“Bayer”), to purchase all of the outstanding shares of common stock, par value $0.01 per share, of Monsanto Company, a Delaware corporation (“Monsanto”). This communication is neith
Slide 6: Agenda
• Update Bayer global • Overview of Bayer in India Agenda • Bayer CropScience Ltd. (BCSL): Financial Perspective • Update Indian Accounting Standards • BCSL: Business Update Page 5 Bayer CropScience Ltd. • Investor Presentation • July 2016
Slide 7: Our Mission: Bayer: Science For A Better Life
Our Mission Bayer: Science For A Better Life The steadily growing and aging global population has a need for new and better medicines and for an adequate supply of safe food. Our innovations offer answers to these challenges. We invent new molecules which can positively influence the biochemical pro
Slide 8: Throughout its history, Bayer has reinvented itself time and again
Science and innovation: Throughout its history, Bayer has reinvented itself time and again % of Group Sales HealthCare & 30% 30% Materials CropScience 70% 70% Life HealthCare & 50% 50% Polymers & 50% 50% Sciences Pharma & CropScience Chemicals Crop Protection 25% 25% Medicine / Polymers & Biologics
Slide 9: Our business areas: The Life Sciences
Our business areas The Life Sciences Pharmaceuticals Consumer Health Crop Science • Prescription drugs • Over-the-counter medicines, • Innovative crop protection dietary supplements, and seeds dermatology products, foot care and sunscreen Animal Health* *Animal Health is a business unit reporting di
Slide 10: Group structure aligned to the Life Sciences focus
Group structure and company organisation are being aligned to the Life Sciences focus BOARD OF MANAGEMENT Pharmaceuticals Consumer Health Crop Science Animal Health Corporate Functions & Business Services Currenta (60%) Covestro* (approx. 64%) * previously Bayer MaterialScience Page 9 Bayer CropScie
Slide 11: Sustainability is an integral part of our corporate strategy and values
Sustainability is an integral part of our corporate strategy and values • For Bayer sustainability means • achieving commercial success while • meeting the needs of our employees and society and • protecting the environment and natural resources Effective sustainability management ensures Bayer’s
Slide 12: Sustainability addresses global trends, challenges and stakeholder expectations
Sustainability addresses global trends and challenges and stakeholder expectations Global trends & challenges Stakeholder expectations Fields of action Demographic change Responsible business Growing world population practices Compliance Safe, innovative and Access to healthcare Employees high-quali
Slide 13: Bayer Group Q1 2016: Life Sciences off to a successful start
Bayer Group Q1 2016: Life Sciences off to a successful start in 2016 Sales EBITDA before special items 1400 Other / Pharmaceuticals 1,261 Reconciliation 3,889 1200 251 +12.2%* 1,106 -6.3%* 43% 3% 1000 Animal 4% Health 800 408 +8.8%* 9,091 600 400 383 33% 17% 200 Consumer 122 Crop Science Health 0 3,
Slide 14: Acquisition of Monsanto to create a global leader in agriculture
Acquisition of Monsanto to create a global leader in agriculture Innovation powerhouse to deliver integrated solutions for the next generation of farming Page 13 Bayer CropScience Ltd. • Investor Presentation • July 2016
Slide 15: Combination addresses fundamental global challenges
Combination addresses fundamental global challenges 1Nelson et. al. (2014) 2FAO 2016 "Climate change and food security“ Page 14 Bayer CropScience Ltd. • Investor Presentation • July 2016 3This includes Seeds & Traits and Crop Protection
Slide 16: Unique and compelling opportunity for Bayer
Unique and compelling opportunity for Bayer Page 15 Bayer CropScience Ltd. • Investor Presentation • July 2016
Slide 17: Agenda
• Update Bayer global • Overview of Bayer in India Agenda • Bayer CropScience Ltd. (BCSL): Financial Perspective • Update Indian Accounting Standards • BCSL: Business Update Page 16 Bayer CropScience Ltd. • Investor Presentation • July 2016
Slide 18: Bayer's Crop Science legal entities in India
Bayer’s Crop Science legal entities in India Sales of Crop Protection products, Environmental Science Bayer CropScience products and Hybrid Seeds for field crops. Ltd. Crop Protection and Environmental Science products partly formulated in-house. Bayer BioScience Research, breeding, production and c
Slide 19: Bayer's other legal entities in India
Bayer’s other legal entities in India Third Party Manufacturing of Bayer Pharmaceuticals, Animal Health and Pharmaceuticals Consumer Health products. Marketing Pvt. Ltd. and Distribution of Animal Health and Consumer Health products Bayer Zydus Joint Venture; Marketing and Distribution Pharma Pvt. L
Slide 20: Agenda
• Update Bayer global • Overview of Bayer in India Agenda • Bayer CropScience Ltd. (BCSL): Financial Perspective • Update Indian Accounting Standards • BCSL: Business Update Page 19 Bayer CropScience Ltd. • Investor Presentation • July 2016
Slide 21: Revenue FY 15-16: Resilient in a challenging market environment
Revenue FY 15-16: Resilient in a challenging market environment Domestic Export Other Operating Other Sales Sales Revenue Income ∆ over previous year +4% -14% -9% -14% +0% in INR Mio. 38,112 1,142 854 92 122 38,186 Net Sales +1% 288 Revenue Revenue FY 14-15 FY 15-16 FY 15-16 81 14 3 2 As % to Total
Slide 22: Profit FY15-16: Difficulties to pass on cost increases
Profit* FY15-16: Difficulties to pass on cost increases in light of market environment Other Operating Employee Other Depreciation & Gross Profit & Other Income Expenses Expenses Finance Cost ∆ over prev. year -4% -11% -1% +8% +7% -19% in INR Mio. 5,735 451 214 16 436 21 4,629 Profit* Profit* FY 14-
Slide 23: Balance Sheet FY15-16: Receivables under control, buyback lowers bank balance
Balance Sheet FY15-16: Receivables under control, buyback results in lower Bank Balance March 31, 2016 March 31, 2015 Fixed Assets Fixed Assets 3,251; +1% 3,224 Bank Balance Shareholders’ 7,632; -32% Funds 6% 7% Bank Balance Shareholders’ 20,329 11,304 Funds 17,559; -14% 16% 20% 36% 37% 24,383 Trade
Slide 24: Agenda
• Update Bayer global • Overview of Bayer in India Agenda • Bayer CropScience Ltd. (BCSL): Financial Perspective • Update Indian Accounting Standards • BCSL: Business Update Page 23 Bayer CropScience Ltd. • Investor Presentation • July 2016
Slide 25: BCSL adopts Indian Accounting Standards (Ind AS) in phase I
BCSL adopts Indian Accounting Standards (Ind AS) in phase I • BCSL is covered under mandatory phase I of Ind AS implementation w.e.f. April 1, 2016 as its net worth stood at more than INR 5,000 Mio. as of March 31, 2014 • Reporting requirement under Ind AS: April 1, 20151 June 30, 20162 Opening Bala
Slide 26: Indicative impact assessment summary FY15-16 P&L - IGAAP restated to Ind AS
Indicative impact assessment summary FY15-16 P&L - IGAAP1 restated to Ind AS Ind AS IGAAP1 Ind AS ∆% Figures in INR Mio. Adjustment Sales 1 36,441 (8,596) 27,845 -24% COGS2 1 24,882 (7,850) 17,032 -32% PAT 2 3 3,009 124 3,133 +4% PAT to Net Sales (%) 8.3 3.0 11.3 +36% Key impact areas: 1 Accounting
Slide 27: Agenda
• Update Bayer global • Overview of Bayer in India Agenda • Bayer CropScience Ltd. (BCSL): Financial Perspective • Update Indian Accounting Standards • BCSL: Business Update Page 26 Bayer CropScience Ltd. • Investor Presentation • July 2016
Slide 28: Despite slow start, above average forecast for SW monsoon
Despite slow start, above average forecast for SW monsoon Region Rainfall (% deviation from (Actual till June 2016) normal) North West India (1.0) Central India (30.0) South Peninsula 12.0 North East India (24.0) All India (16.0) Month (2016) Forecast (% deviation from LPA) June (13.0) July 8.0 Augu
Slide 29: Slow start of season; good preparation and stock placement
Slow start of season; good preparation & stock placement considering monsoon forecast Crop Protection Seeds Insecticides Hybrid Rice Arize® • Lower acreage of rice and low • Timely placement of stocks in the infestation affected consumption market; strong demand generation activities (1.5 mil. Farme
Slide 30: Crop Outlook: June – December 2016
Crop Outlook: June – December 2016 Commodity prices – MSP* as indicator Cotton 1% • Rice: Normal season with well distributed Rice 4% precipitation, improving commodity prices Soybean 7% & market sentiment Maize 3% • Cotton: Recovery from drought & Red Gram 9% emergence of pink boll worm segment Bla
Slide 31: Overall external drivers are positive and Bayer is well prepared
Overall external drivers are positive and Bayer is well prepared to improve position Rainfall and water availability Crop economics for farmer Market Inventories Liquidity in the channel Price pressure Bayer portfolio strength Bayer preparedness Bayer new launches Page 30 Bayer CropScience Ltd. • In
Slide 32: New Launches will play a significant role in driving growth till 2020
New Launches will play a significant role in driving the growth till 2020 2015 2016 2017 - 20 Crop Protection: 15-20 Seeds: 35-40 Label Extensions: >100 Page 31 Bayer CropScience Ltd. • Investor Presentation • July 2016
Slide 33: Spray Luna - feel the Experience
“Spray Luna - feel the Experience” A well prepared launch of a new product is “Half the Battle Won” Training Programs Field Days Campaigns Farmers Demonstrations Jeep/bike Campaigns Channel Harvest Days TV/Cable/Paper Ads Field Officers Testimonials Point of Sales Page 32 Bayer CropScience Ltd. • In
Slide 34: Integrated Customer Interaction Management
Integrated “Customer Interaction Management” is key to our Commercial Excellence Customer Interaction Management CHANNEL STRATEGY GROWER STRATEGY In person visits Distribution width & depth Providing farming advisory Channel motivation & Voice based solutions loyalty (IVR or helpdesk) Channel invent
Slide 35: Summary
Summary • Despite slow start because of late arrival of monsoon, outlook remains positive • BCSL has strong portfolio pipeline to capture new segments • BCSL continuously looks to increase customer responsiveness & invests to develop future farming practices, solutions and technologies BCSL is stron
Slide 36: Thank you!
B A BAYER E R Science For A Better Life Thank you!