Slide 1: Investor Conference Call FY/Q4 2022 Results
Investor Conference Call /////////// FY/Q4 2022 Results February 28th, 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: FY 2022 Results: Business Update
FY 2022 Results Business Update /////////// Werner Baumann, CEO
Slide 4: Outstanding Performance and Important Progress in Innovation
Outstanding Performance and Important Progress in Innovation 1 Delivered on our financial targets 2 Achieved key innovation milestones 3 Macro challenges remain 4 Bayer FY/Q4 2022 Investor Conference Call /// February 28th, 2023
Slide 5: FY 2022 Results: Divisional Performance & Outlook
FY 2022 Results Divisional Performance & Outlook /////////// Rodrigo Santos Stefan Oelrich Heiko Schipper
Slide 6: Crop Science 2022: Record Sales & Industry-Leading Margin
Crop Science 2022: Record Sales & Industry-Leading Margin Sales EBITDA Sales In million €, ∆% yoy In million €, before special items Key Messages In million €, ∆% yoy, cpa. • Herbicides (+44%) largely driven by higher Volume glyphosate pricing (~€2bn) due to tight supply 0% +25% • Corn S&T (+9%) inc
Slide 7: Crop Science Innovation: Advancing Sustainable Competitive Advantage
Crop Science Innovation: Advancing Sustainable Competitive Advantage with 100’s of Seed Deployments and CP Registrations Highlights Outlook 2023 Investing to Lead Smart Corn System – Ground Breakers €2.6bn1 annual R&D spend to fuel >€30bn Expect on-farm trials with 200-400 growers in 2023 with peak
Slide 8: Crop Science 2023: Accelerating Growth Excluding Glyphosate
Crop Science 2023: Accelerating Growth Excluding Glyphosate Sales Growth EBITDA margin 2023 1 2023 1 (cpa) (before special items) Crop Science ~ +3% 25% - 26% Key Assumptions Sales • Portfolio ex. glyphosate expected to grow by 8%, or ~€1.6bn: Expect double-digit percent sales increases in corn S&T,
Slide 9: Pharmaceuticals 2022: New Products Gain Momentum
Pharmaceuticals 2022: New Products Gain Momentum Sales Sales EBITDA InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items Key Messages • Nubeqa (+97%) topline doubled to ~€470m, Volume strong launch for Kerendia (>€100m) +1% +5% • Eylea (+9%) with continued growth across (+
Slide 10: Pharmaceuticals Innovation: Strong Foundation for Future Growth
Pharmaceuticals Innovation: Strong Foundation for Future Growth Highlights Outlook 2023 Strong pipeline newsflow: • Positive Phase III ARASENS results for Nubeqa in mHSPC Key pipeline catalysts: • Strong Aflibercept 8mg data • Further approvals of Nubeqa in mHSPC • Initiation of landmark Phase III O
Slide 11: Pharmaceuticals 2023: New Products to Offset Declines in Mature Portfolio
Pharmaceuticals 2023: New Products to Offset Declines in Mature Portfolio Sales Growth EBITDA margin 2023 1 2023 1 (cpa) (before special items) Pharmaceuticals ~ +1% > 29% Key Assumptions Sales • Combined sales for Nubeqa and Kerendia to exceed €1bn • Eylea expected to offset increasing price pressu
Slide 12: Consumer Health 2022: Substantial Sales and Earnings Growth
Consumer Health 2022: Substantial Sales and Earnings Growth despite Inflationary Pressure Sales Sales EBITDA InIn million €,€, million ∆% yoy, ∆% yoycpa. Key Messages In million €, before special items • Broad based growth across all regions and Volume +15% categories +2% (+8% cpa) • Strong demand i
Slide 13: Consumer Health: Industry-Leading Science, Trusted by Consumers
Consumer Health: Industry-Leading Science, Trusted by Consumers Highlights Outlook 2023 Our innovation advantage… …is transforming self-care • 4% of Net Sales R&D spend, top tier in Latest Rx-to-OTC switch: industry • AsteproTM Allergy • First-of-its-kind nasal allergy • World class innovation netwo
Slide 14: Consumer Health 2023: Above-Market Growth and Margin Expansion
Consumer Health 2023: Above-Market Growth and Margin Expansion in a Challenging Environment Sales Growth EBITDA margin 2023 1 2023 1 (cpa) (before special items) Consumer ~ +5% ~ 23% Health Key Assumptions Sales • Executing on our mid-term ambitions, innovation and the value of our brands will drive
Slide 15: FY 2022 Results: Group Performance & Outlook
FY 2022 Results Group Performance & Outlook /////////// Wolfgang Nickl, CFO
Slide 16: Group 2022: Fully Achieved Upgraded Guidance
Group 2022: Fully Achieved Upgraded Guidance Outlook 2022 FY 2021 as of Nov 2022 FY 2022 incl. currency impact Net Sales 44.1 50.5 – 51.5 50.7 in €bn; ∆% yoy +15% / +9% cpa EBITDA margin 25.4% 25% – 26% 26.6% before special items Core EPS 6.51 ~ 7.70 7.94 in € Free cash flow1 1.4 ~ 3.0 3.1 in €bn Ne
Slide 17: Group Guidance 2023
Group Guidance 2023 2022 Actuals 2023 Outlook at constant currencies1 Key Assumptions €51bn to Net Sales €50.7bn 52bn • Representing sales growth of 2% to 3% cpa • Including portfolio effects of -€500m in sales EBITDA • FX headwinds of ~€1bn estimated for sales 2 €13.5bn €12.5 to 13bn (before specia
Slide 18: Core EPS Bridge 2021 to 2023
Core EPS Bridge 2021 to 2023 in €, indicative 2.20 – 2.40 ~ - 1.40 ~ 0.05 7.20 – 7.40 ~ - 1.60 cEPS Volume, Glyphosate Inflation cFin. Res., Currency cEPS Volume, Glyphosate Inflation cFin. Res., cEPS 2021 Pricing, Pricing cTax 2022 Pricing, Pricing & cTax, 2023e Efficiencies Efficiencies Volume Cur
Slide 19: Investor Conference Call FY/Q4 2022 Results
Investor Conference Call /////////// FY/Q4 2022 Results February 28th, 2023
Slide 20: Group Guidance 2023
Group Guidance 2023 2022 Actuals 2023 Outlook at constant currencies1 Key Assumptions Special items (EBITDA) €0.0bn ~ - €1.0bn • Special items (EBITDA) primarily driven by ongoing restructuring programs • Core depreciation: Formerly guided for “as Core depreciation - €1.6bn ~ - €1.6bn depreciation a
Slide 21: FY 2022: Group KPIs
FY 2022: Group KPIs Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy In million €, before special items In €, Cont. Operations In million € +15% (+9% cpa) 50,739 3,111 44,081 +21% +22% +120% 7.94 13,513 6.51 11,179 1,415 25.4% 26.6% FY'21 FY'22 FY'21 FY'22 FY'21 FY'22 FY'21 FY'22 FX tailwin
Slide 22: FY 2022: Core EPS to EPS Bridge
FY 2022: Core EPS to EPS Bridge in € -2.56 7.94 -2.44 1.70 -0.42 4.22 Core EPS Extraordinary Ordinary amortization Special Items in Tax Effects EPS FY'22 FY'22 amortization and and impairment on IP Financial Results/ on Adjustments impairment on IP and and PPE Income Taxes PPE 22 Bayer FY/Q4 2022 In
Slide 23: FY 2022: Summary
FY 2022: Summary Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 Sales 20,207 25,169 18,349 19,252 5,293 6,080 232 238 44,081 50,739 Sales by region: Europe / Middle East /
Slide 24: Crop Science Q4: Successful Close of the Year
Crop Science Q4: Successful Close of the Year Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Double-digit growth in NA, LATAM and +19% EMEA Volume (+11% cpa) +3% 5,569 • Corn S&T (+24%) and Soy S&T (+23%) driven by price and volume e
Slide 25: Pharmaceuticals Q4 2022: China VBP and Non-Recurring Adempas Milestone
Pharmaceuticals Q4 2022: China VBP and Non-Recurring Adempas Milestone Weigh on Performance Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Nubeqa & Kerendia more than doubling -2% sales, becoming #1 growth driver Volume -3% (-3% cpa)
Slide 26: Consumer Health Q4 2022: Continued Sales Growth
Consumer Health Q4 2022: Continued Sales Growth, Compensating for Cost Pressures Sales Sales EBITDA Key Messages In million €, ∆% yoy, cpa. In million €, ∆% yoy In million €, before special items • Continued underlying strength in all regions +9% and categories Volume (+6% cpa) -1% 1,524 • Allergy &
Slide 27: Q4 2022: Group KPIs
Q4 2022: Group KPIs Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy In million €, before special items In €, Cont. Operations In million € +8% (+4% cpa) 12,000 11,118 +3% +7% 1.35 2,462 1.26 -8% 2,395 1,535 1,420 21.5% 20.5% Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 FX tailwind of €6
Slide 28: Q4 2022: Core EPS to EPS Bridge
Q4 2022: Core EPS to EPS Bridge in € -0.84 1.35 0.05 -0.16 0.83 0.62 -0.61 Core EPS Extraordinary Ordinary Special Items Special Items in Tax Effects EPS Q4'22 amortization amortization (EBITDA Financial on Continuing and impairment and impairment relevant) Results Adjustments Operation Q4'22 on IP
Slide 29: Q4 2022: Summary
Q4 2022: Summary Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million, if not specified] Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 Sales 4,690 5,569 4,951 4,855 1,405 1,524 72 52 11,118 12,000 Sales by region: Europe / Middle East / Africa 573 632 2,127 1,88
Slide 30: Crop Science Annual R&D Pipeline Update
February 2023 Crop Science Annual R&D Pipeline Update /////////// Appendix 2
Slide 31: Crop Science R&D Investment Powers Pipeline with >€30bn Peak Sales Potential
Crop Science R&D Investment Powers Pipeline with >€30bn Peak Sales Potential 2022 Ag R&D Investment (€bn) Pipeline Peak Sales Potential1 of >€30bn Other2 Corn S&T 2.6 ~€6bn >€30bn ~€11bn Insecticides ~€2bn in Cumulative PSP1 ~50% Incremental ~€3bn 1.2 Fungicides 1.0 0.9 ~€4bn ~€4bn Bayer Crop Cortev
Slide 32: Crop Science: Seed & Traits and Digital R&D Pipeline
Crop Science: Seed & Traits and Digital R&D Pipeline €21bn (Annual Update Feb 2023) PSP Phase I Phase II Phase III Phase IV PSP CORN SEED & TRAIT Corn Disease Shield - NA 5th Generation Lepidoptera Protection Short Stature Corn – Biotech Trait3 Short Stature Corn – Breeding Approach 2nd Generation S
Slide 33: Crop Science: Crop Protection R&D Pipeline
Crop Science: Crop Protection R&D Pipeline €9bn (Annual Update Feb 2023) 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 34: Pharmaceuticals Innovation Update
February 2023 Pharmaceuticals Innovation Update /////////// Appendix 3
Slide 35: Nubeqa & Kerendia Driving Growth of Innovative Medicines Business in the US
Nubeqa & Kerendia Driving Growth of Our Innovative Medicines Business in the US Bayer Pharmaceuticals Sales by Region Sales of Rx Pharma US €bn LatAm Japan ~17% CAGR Other 9% 5% 10% ~3.0 2.6 China 16% 2.2 14% USA Rx FY 2022 €19.3bn 7% EMEA USA non-Rx 39% 2021 2022 2023e Market share of Nubeqa in the
Slide 36: Nubeqa will continue growth momentum in 2023
With doubled sales in 2022, ongoing market share gains and label extensions, Nubeqa will continue growth momentum in 2023 Global sales development (€m, cpa growth rates) Key sales drivers 158 127 FY 2022: 106 68 76 Sales more than doubled to €466m US Expanding market share in the US to >30% in nmCRP
Slide 37: Kerendia off to a strong start since initial US launch
Kerendia off to a strong start since initial US launch in 2021 Global sales development (€m, cpa growth rates) Key sales drivers 2022: 48 Sales growing to €107m 29 11 20 US Continued US market uptake 6 ex-US One of the strongest launch dynamics in CV despite initial COVID restrictions Q4 2021 Q1 202
Slide 38: Xarelto's main patent expirations / loss of exclusivity
Xarelto´s main patent expirations* / loss of exclusivity (LoE) Xarelto sales by main markets in 2022 EU USA*** 2027 UK Other regions USA** Australia 2026 CH China 9% 13% Canada USA 2025 Japan 8% EU Jul 2024: SPAF 4% Dec 2025: VTE 2024 UK Japan 10% Australia CH FY 2022 EU 2023 €4.5bn Canada LoE 9% 20
Slide 39: Pharmaceuticals: R&D Developments
Pharmaceuticals: R&D Developments (since last update on December 13, 2022) Phase I Phase II Phase III Commercial Initiation of GPR84 Antagonist Initiation of Zabedosertib FXIa inhibitor asundexian: Nubeqa (darolutamide) (diabetic neuropathic pain) (Atopic Dermatitis (DAMASK)) Initiation of OCEANIC-
Slide 40: Pharmaceuticals – Pipeline Overview
Pharmaceuticals – Pipeline Overview1 (as of Feb 15, 2023) Phase 02 Phase I Phase II Phase III DGKalpha Inh (BAY 2862789) Elimusertib (ATR Inhibitor) (BAY 1895344) Regorafenib (combi Nivolumab) (BAY 734506) Copanlisib (PI3K Inhibitor) Solid tumors (recurrent or metastatic) Non-Hodgkin Lymphoma (CHRON
Slide 41: View our Bayer AG Investment Case here
/////////// View our Bayer AG Investment Case here: LINK