Bayer AG · XETR:BAYN
Bayer — Investor Presentation (September 2022)
36 slides from Bayer's investor presentation, Sep 15, 2022
Slide 1: Consumer Health Investor Webinar
Consumer Health /////////////////// Investor Webinar September 15, 2022
Slide 2: Agenda
Agenda 1 Welcome – Oliver Maier (Head of Investor Relations Bayer AG) 2 Consumer Health - Driving sustainable outperformance in Consumer Health Patrick Lockwood-Taylor David Evendon-Challis Patricia Corsi Oliver Rittgen President Bayer USA / Chief Scientific Officer, Strategic Marketing, CFO Head of
Slide 3: 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 4: A leading Consumer Health player with a well-balanced portfolio
A leading Consumer Health player with a well-balanced portfolio Category Portfolio Geographic Footprint Cardiovascular North America Cough & Cold Nutritionals Europe, Middle 3% East & Africa 12% Pain 25% ~40% ~35% 11% 15% ~ Allergy 11% ~10% Latin Asia 23% America Pacific 15% Digestive Health Dermato
Slide 5: Focused portfolio on core Consumer Health where we can win
Focused portfolio on core Consumer Health where we can win Clear Focus on Core CH Market Key Portfolio Moves Executed Acquisitions / Other CH Divestures categories Core Consumer Health Licenses (e.g. Oral care; Sun care) Derma Rx Personalized Jul 2019 Nutritionals Nov 2020 21% OTC Sun care Nutrition
Slide 6: Industry-leading science trusted by consumers
Industry-leading science trusted by consumers World-class Science, Consumer #1 Trusted Science Brand and HCP capabilities Q: “Which of these brands are based on science?” // 4% R&D spend, top-tier in industry // Leading regulatory, medical & evidence generation capabilities 35.5% // Proven Rx-to-OTC
Slide 7: Iconic power brands
Iconic power brands 7 /// Consumer Health Investor Webinar /// September 15, 2022
Slide 8: A management team with a proven track record
A management team with a proven track record Heiko Oliver Patricia Patrick Stefan Lance Arturo Schipper Rittgen Corsi Lockwood-Taylor Meyer Yuen Sanchez President Finance Strategic Marketing, Commercial Commercial Commercial Commercial Consumer Health Digital, & IT Operations NA Operations EMEA Oper
Slide 9: Financials reflect strong execution
Financials reflect strong execution Net Sales Growth EBITDA Margin Trade Working Capital* % cpa % of Net Sales % of Net Sales reduction yoy in bps Mid-20s 22.5% 0 bps 6.5% 22.0% 5.2% -60bps 3-5% 20.9% 2.6% 20.1% -180bps -0.7% -220bps 2018 2019 2020 2021 CMD 2018 2019 2020 2021 CMD 2018 2019 2020 202
Slide 10: Growing ahead of Consumer Health peers
Growing ahead of Consumer Health peers Net Sales Growth 2018 2019 2020 2021 Bayer CH Top 5 Peers Average 6.5% 5.2% 4.7% 3.3% 2.6% 1.3% 0.9% -0.7% Δ vs CH Peer Avg -400 BPS +130 BPS +430 BPS +180 BPS Source: Peer Net Sales growth vs previous year – Company analysis for Peer Like-For-Like growth estim
Slide 11: A clear Game Plan to sustain outperformance
A clear Game Plan to sustain outperformance // AMBITION Grow ahead of the market and increase margins // WHERE TO PLAY Winning Portfolio focused on where Bayer can win // HOW TO WIN Driving Growth- Modernizing Optimizing focused Innovation Marketing & Sales Costs & Cash Digital Transformation // OUR
Slide 12: Key platforms to sustain above-market growth
Key platforms to sustain above-market growth Attractive High-growth Rx-to-OTC Digital Commerce Demand Spaces Markets Switches & Health Platforms // Premium Nutritionals // China // Astepro // eCommerce // Healthy Ageing // India // Switch #2 // Digital Diagnostics // Stress and Sleep // Mexico // Sw
Slide 13: Consumer Health as a force for good
Consumer Health as a force for good Expand Access to Everyday Health Path to Climate Neutrality 59 Million people with improved access to self-care in underserved communities 35% CO2 emissions reduction achieved across our operations // Investing in accessible and more sustainable products // Invest
Slide 14: A sustainable value creation model
A sustainable value creation model Drive above-market growth focusing on attractive categories, markets, channels, GROWTH and superior execution Sales Growth Continuously improve margin towards mid-twenties through scale effects and MARGIN continuous efficiency programs Drive absolute growth and EBI
Slide 15: The Science of Self-Care
The Science of Self-Care /////////////////// Growth-focused Innovation September 2022
Slide 16: Innovation is a key value driver in Consumer Health
Innovation is a key value driver in Consumer Health No1 Drives brand relevance and builds brand equity with consumers OTC growth driver Plays a defence role vs commoditization and an offence role through share gain 3-5 % 166 179 210 149 153 Fuels total category growth 21 22F 24F 26F 31F along with m
Slide 17: World-class innovation network
World-class innovation network 9 R&D Centers of Excellence 4% R&D spend Top-tier in industry End-to-end capabilities Idea to launch, deep science Reading Darmstadt Talent & Diversity Innovation Hub Phytomedicine Gaillard 700+ scientists and innovators VMS, Derm Qidong Alcala Mumbai China Mexico City
Slide 18: Science-led innovation model that drives overall category growth
Science-led innovation model that drives overall category growth Our Category Growth Model 20% TRANSFORM categories and consumer experience 30% E X PA N D brands into adjacent consumer & medical needs 50% Science for a better life STRENGTHEN core brand propositions 18 /// Consumer Health Investor We
Slide 19: Strengthen core brand propositions
Strengthen core brand propositions Medical Need Sleep, environment, diet, stress, and activity can influence micronutrient Science status and threaten our immunity of Discovery Science of the Human Consumer Need Science of the Consumer Product Experience With the constant threat of upper respiratory
Slide 20: Expand brands into adjacent consumer and medical needs
Expand brands into adjacent consumer and medical needs Medical Need Efficacious prevention and multi-symptom relief from constipation and diarrhea Consumer Need Science of Collaboration Gut wellbeing from a specially designed probiotic Science of compatible with Chinese dietary habits Discovery Scie
Slide 21: Transform categories and consumer experience
Transform categories and consumer experience Medical Need Target histamine receptors in the nasal cavity for faster relief Science of Collaboration Consumer Need Science of Fast relief is the #1 demand Regulation for allergy sufferers Science of Discovery Differentiated Science Fast: Starts working
Slide 22: Sustainability by design: for access and environment
Sustainability by design: for access and environment Design Design for Environment for Health Design for Access Design for Health Developing products with lower Developing self-care products environmental impact for the underserved 22 /// Consumer Health Investor Webinar /// September 15, 2022
Slide 23: Precision health enabling self-care across the consumer journey
Precision health enabling self-care across the consumer journey QUESTIONNAIRE ON ALGORITHM DELIVERED IN A BECOME PART LIFESTYLE AND DIET PERSONALIZES OFFER PERSONALIZED PACK OF THE COMMUNITY Each product scored based on existing research (# of studies, consistency and magnitude of results and method
Slide 24: Industry-leading science, trusted by consumers
Industry-leading science, trusted by consumers World-class innovation network & capabilities Science-led innovation model driving overall category growth Winning by strengthening, expanding and transforming our brands Sustainability by design for access and environment Future-fit with big brand inno
Slide 25: Brand-building & Route to Market
Brand-building & Route to Market /////////////////// Commercial Pillars for Success September 2022
Slide 26: Building commercial capabilities to deliver sustainable outperformance
Building commercial capabilities to deliver sustainable outperformance Commercial Pillars for Success Modernized Marketing Customer-centric Sales Iconic Creative Data-driven Tailored Strategic eCommerce Purposeful Powerhouse Consumer Customer Value Acceleration Brands in Health Engagement Strategies
Slide 27: Iconic brands backed by science, empowering everyday health
Iconic brands backed by science, empowering everyday health Net Sales Growth Modernized Brands in Action 15 brands > 100M€ in sales Power Brands 75% of sales Source: Bayer Net Sales 2021 27 /// Consumer Health Investor Webinar /// September 15, 2022
Slide 28: Purposeful brands positively impacting consumer lives & communities
Purposeful brands positively impacting consumer lives & communities Help Every Baby Have Take Taboo Away Getting Kids and Parents the Best Start in Life from Intimate Health Outside for Better Health Over 7 million1 women and babies 40 million2+ views on TikTok 66 million3+ impressions given access
Slide 29: Leading transformation to world-class creativity enabling self-care
Leading transformation to world-class creativity enabling self-care Creativity that Drives Change Industry Leadership 29 /// Consumer Health Investor Webinar /// September 15, 2022
Slide 30: Accelerating use of data to personalize consumer engagement
Accelerating use of data to personalize consumer engagement Data & Digital First Leading in Digital Platforms Contextual Engagement 2019 - 2022 Share of Digital 2X Media1 Share of Data- driven Marketing 3X Investments1 Share of Personized 5X Creatives1 1 Bayer internal data 30 /// Consumer Health In
Slide 31: Forging strong customer partnerships to drive category growth
Forging strong customer partnerships to drive category growth Retail Key Accounts1 Independent Pharmacies2 1 Astepro activation Walmart US 2022. 2 Supradyn, Redoxon and Canesten activations in Superdrug UK 2021-22 31 /// Consumer Health Investor Webinar /// September 15, 2022
Slide 32: Doubling down on e-Commerce and growth platforms
Doubling down on e-Commerce and growth platforms Winning in Key eCom Platforms Strategic Portfolio Moves 2019 2022 2024 Share of Digital Commerce1 4% ~11% >15% Nov. 2020 Oct. 2021 June. 2022* eCom Growth FY’211 >50% Digital Engagement Mechanisms 1 Bayer internal sales data * Strategic minority stake
Slide 33: Pricing and trade excellence to drive value creation with customers
Pricing and trade excellence to drive value creation with customers Innovations Playing Across Different Value Tiers Premium 160+ Innovation 140-160 120-130 Value Offerings 100 Foundation <100 Low-income consumer solutions 33 /// Consumer Health Investor Webinar /// September 15, 2022
Slide 34: Continuously progressing to be best in the industry
Continuously progressing to be best in the industry Commercial Pillars for Success Modernized Marketing Customer-centric Sales Iconic Creative Data-driven Tailored Strategic eCommerce Purposeful Powerhouse Consumer Customer Value Acceleration Brands in Health Engagement Strategies Programs Rooted in
Slide 35: Driving sustainable outperformance in Consumer Health
Driving sustainable outperformance in Consumer Health A leading Consumer Health player with a well-balanced portfolio World-class science, consumer and HCP capabilities Clear strategy to sustain outperformance Track record of execution excellence Attractive growth profile and cash flow generation 35
Slide 36: Q&A session
Q&A session ///////////