Bayer Ag · XETR:BAYN
Bayer — FY2017 Earnings Presentation
22 slides from Bayer's earnings presentation, Feb 28, 2018
Slide 1: Investor Conference Call FY/Q4 2017 Results
Investor Conference Call /////////// FY/Q4 2017 Results February 28, 2018 / Werner Baumann, CEO
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: FY 2017 – Highlights
FY 2017 – Highlights Pharmaceuticals records higher sales and encouraging earnings growth Weak business development at Consumer Health Crop Science business down against prior year, as expected – measures in Brazil taking effect Group sales €35.0 billion (Currency & portfolio adjusted + 1.5%) EBITDA
Slide 4: Q4 2017 – Increase in Sales and Core EPS
Q4 2017 – Increase in Sales and core EPS – Adjusted EBITDA on Prior Year Level Sales EBITDA Core EPS in € million before special items cont. operations % currency & portfolio adj. in € million in € 8,823 1,806 1,783 1.41 8,596 1.10 Q4’16 Q4’17 Q4’16 Q4’17 Q4’16 Q4’17 +3% -1% +28% 4 FY/Q4 2017 Invest
Slide 5: Q4 2017 – Breakdown by Segment
Q4 2017 – Breakdown by Segment Sales EBITDA in € million; ∆% yoy, Fx & portfolio adj. before special items, in € million; ∆% yoy Pharma 1,806 +4% 1,783 -1% 4,215 Consumer Health 1.217 1,399 -4% 1.235 +1% 322 Animal 372 Health 251 -33% +2% 2,263 351 304 -13% CropScience 38 49 +29% +1% Q4´16 Q4´17 Gro
Slide 6: Status of the Planned Acquisition of Monsanto
Status of the Planned Acquisition of Monsanto Filed for approval in about 30 jurisdictions with more than half of the regulatory approvals achieved CFIUS approval achieved end of 2017 Transaction approved in Brazil Constructive, solution oriented discussions with all relevant regulators Expect closi
Slide 7: FY 2017 – Performance Against Targets
FY 2017 – Performance Against Targets Sales ∆% yoy, Fx & portfolio adj., EBITDA before special items, continuing operations 2016 2017 Guidance 2017 ∆ 2017 Actual (Oct 2017) Actual vs. 2016 Sales €34.9bn low-single-digit % increase to €35-36bn €35.0bn +2% ✓ Adj. EBITDA €9.3bn Slightly above prior yea
Slide 8: FY 2017 – Pharmaceuticals Records Higher Sales and Encouraging Earnings Growth
FY 2017 – Pharmaceuticals Records Higher Sales and Encouraging Earnings Growth Sales Key Growth Products EBITDA in € million; ∆% yoy, Fx & portfolio adj. FY‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy 3.298 5,711 +9% 2.928 +14% 5,251 16,420 16,847 +4% 1.880 +18%
Slide 9: FY 2017 – Weak Business Development at Consumer Health
FY 2017 – Weak Business Development at Consumer Health Sales Top Products EBITDA in € million; ∆% yoy, Fx & portfolio adj. FY‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy 1,043* 1,411 +6% 1,001 6,037 5,862 -2% 1,231 -13% 585 -2% 605 379 +7% 362 375 -8% 416 FY‘16
Slide 10: FY 2017 – Crop Science Business Down Against Prior Year
FY 2017 – Crop Science Business Down Against Prior Year, as Expected – Measures in Brazil Taking Effect Sales Regions EBITDA in € million; ∆% yoy, Fx & portfolio adj. FY‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy Environm. 9,915 9,577 -2% Science 598 Europe / M
Slide 11: FY 2017 – Animal Health With Sales and Earnings Growth
FY 2017 – Animal Health With Sales and Earnings Growth Despite Weak Market Environment Sales Top Products EBITDA in € million; ∆% yoy, Fx & portfolio adj. FY‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy 488 535 -8% 1,523 1,571 +2% 381 +9% 218 349 +25% 174 132 +4%
Slide 12: Group Outlook for FY 2018
Group Outlook for FY 2018 Outlook depends on specific planning assumptions outlined in the Annual Report Sales ∆% yoy, Fx & portfolio adj., EBITDA before special items Continuing operations 2017 Group Forecast 2018 As reported * Prior year level; ~€35bn Sales €35.0bn Currency adjusted Low- to mid-si
Slide 13: 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 Sales Adj. EBITDA As reported * Currency-adjusted Low-single-digit % increase to >€16.5bn Low-single-di
Slide 14: Fx-Sensitivity by Currency
Fx-Sensitivity by Currency A 1% appreciation (depreciation) of the euro against all other currencies would decrease (increase) sales on an annual basis by some €250 million and EBITDA before special items by about €70 million. Sales ~ €250 milion Share of 1% sensitivity Sales Fx by division USD ~33%
Slide 15: Appendix
Investor Conference Call /////////// FY/Q4 2017 Results February 28, 2018 / Werner Baumann, CEO Appendix
Slide 16: Q4 2017 – Continued Growth at Pharmaceuticals
Q4 2017 – Continued Growth at Pharmaceuticals Sales Key Growth Products EBITDA in € million; ∆% yoy, Fx & portfolio adj. Q4‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy 914 +12% 1,217 1,235 +1% 836 4,275 4,215 +4% 507 426 +24% 101 90 +20% 80 +12% 77 72 70 +9% Q4‘
Slide 17: Q4 2017 – Decline in Sales and Earnings at Consumer Health
Q4 2017 – Decline in Sales and Earnings at Consumer Health Sales Top Products EBITDA in € million; ∆% yoy, Fx & portfolio adj. Q4‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy 261* 372 1,539 261* +6% 1,399 -4% 113 +3% 122 103 +3% 115 251 -33% 96 +14% 90 Q4‘16 Q4‘1
Slide 18: Q4 2017 – Sales at Crop Science Driven by EMEA
Q4 2017 – Sales at Crop Science Driven by EMEA – Business in Brazil Stabilized Sales Regions EBITDA in € million; ∆% yoy, Fx & portfolio adj. Q4‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy Environm. 2,404 Science 2,263 +1% Europe / Middle 440 +4% 351 180 East /
Slide 19: Q4 2017 – Animal Health with Higher Sales and Improved Earnings
Q4 2017 – Animal Health with Higher Sales and Significantly Improved Earnings Sales Top Products EBITDA in € million; ∆% yoy, Fx & portfolio adj. Q4‘17 sales in € million, ∆% yoy, Fx adj. before special items, in € million; ∆% yoy 87 329 322 +2% -10% 102 49 +29% 32 28 +26% 38 31 -1% 34 30 +2% 31 Q4‘
Slide 20: 2018 Guidance for other Key Data of the Group
2018 Guidance for other Key Data of the Group Closing rates on Dec. 31, 2017 Special charges1 around €0.4 billion R&D expenses around €4.1 billion Capital expenditures around €2.2 billion of which for intangible assets around €0.6 billion Depreciation and amortization around €2.2 billion of which fo
Slide 21: 2018 Guidance for Key Pharma Products
2018 Guidance for Key Pharma Products Product Guidance FY 2018 (Fx adjusted) Xarelto High-single-digit % sales increase Eylea Mid-teens % sales increase Xofigo ~10% sales increase Stivarga High-teens % sales increase Adempas >20% sales increase Mirena family High-single-digit % sales increase Kogena
Slide 22: Investor Conference Call FY/Q4 2017 Results
Investor Conference Call /////////// FY/Q4 2017 Results February 28, 2018 / Werner Baumann, CEO