Bayer Ag · XETR:BAYN
Bayer — Investor Presentation (November 2022)
83 slides from Bayer's investor presentation, November 2022
Slide 1: A Global Leader in Health & Nutrition
Science for a Better Life A Global Leader in Health & Nutrition /////////// Investment Case November 2022 / Bayer AG 1 /// Bayer AG /// Investment Case /// November 2022
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: Bayer: A Global Leader in Health and Nutrition
Group Overview Winning Portfolio Bayer: A Global Leader in Health and Nutrition Well Positioned to Create Value in Growing Markets using Science to Address Societal Megatrends Market Size Crop Science Bayer Group Sales ~€100bn1 #3 OTC Player Consumer #1 in Sales and Health Profitability & R&D Crop S
Slide 4: Global Megatrends in Health & Nutrition
Group Overview Global Megatrends in Health & Nutrition Attractive Macro Drivers of Our Strategy and Underpin the Need for Innovation Pharmaceuticals Consumer Health Crop Science Aging Population Growing Population Pressure on Ecosystems Megatrends People 60+ +2.2bn +50% -20% more than people1 throug
Slide 5: Leadership and Innovation Set the Course for Our Future Growth
Group Overview Leadership and Innovation Set the Course for Our Future Growth Key Growth Drivers Long-term megatrend tailwinds are propelling growing demand in the Life Sciences Number one position in Ag inputs and leading positions in key Pharma and Consumer categories World-class innovation: techn
Slide 6: New Transformation Program with Gross Contributions of >€1.5bn
Group Overview New Transformation Program with Gross Contributions of >€1.5bn Expect Partial Reinvestment to Drive New Opportunities; Remainder to Drive Margin Expansion Transformation Programs Delivery €2.6bn • Bayer 2022 program successfully concluded > €1.5bn • We accelerate our transformation to
Slide 7: Focus on Cash Generation Now Embedded in Incentive Plans
Group Overview Focus on Cash Generation Now Embedded in Incentive Plans Improvements Expected from Sales Growth, Working Capital & Divestments; Litigation Pay-outs and One- Time Costs for Transformation Mitigating Factors Improve Free Cash Flow Adapt incentive scheme Free Cash Flow integrated as a k
Slide 8: Disciplined Capital Allocation to Delever, Pay Dividends and Invest
Group Overview Disciplined Capital Allocation to Delever, Pay Dividends and Invest Expect Net Debt to Return to €28-30bn by 2024 Capital allocation priorities Net financial debt development In €bn 33 Rating target: 31 Deleveraging 28-30 A category 3.4 Free Cash Flow 2.8- Pay-out range: 3.0 Dividends
Slide 9: Sustainability is Integral to Our Values, Strategy and Operations
Group Overview Sustainability is Integral to Our Values, Strategy and Operations We intend to create bold impact and generate sustainable business opportunities Pharmaceuticals Consumer Health Crop Science Megatrends Aging Population Growing Population Pressure on Ecosystems Preserve and Secure suff
Slide 10: Investment Thesis Key Takeaways
Key Takeaways Group Overview Investment Thesis Key Takeaways 1 We are a global leader in Health & Nutrition that addresses societal megatrends 2 We are well-positioned to shape disruption in the bio-revolution 3 We expect to translate innovation into profitable mid-term growth 4 We expect to improve
Slide 11: Shaping the Future of Agriculture
Science for a Better Life Shaping the Future of Agriculture /////////// Investment Case November 2022 / Bayer AG 11 /// Bayer AG /// Investment Case /// November 2022
Slide 12: Shaping the Future of Agriculture
Shaping the Future of Agriculture 1 Market & Position 4 World-Class Innovation 2 Strategy 5 Digital Transformation 3 Operational Performance 6 New Standards in Sustainability 12 /// Bayer AG /// Investment Case /// November 2022
Slide 13: The Established Leader in Crop Science
1 Market & Position The Established Leader in Crop Science Industry Leading Profitability Underpinned by >€2bn in Annual Seed & Trait Licensing Revenue Largest in Sales Highest Profitability Total Sales1 (€bn), FY 2021 EBITDA1 (€bn) / EBITDA1 Margin (%), FY 2021 11.2 9.0 20,2 4,7 23.2% Syngenta 18,2
Slide 14: Growers Worldwide Recognize the Value We Deliver
1 Market & Position Growers Worldwide Recognize the Value We Deliver #1 in Seed & Traits Sales with Leading Crop Protection Portfolio in €100bn Global Ag Input Market Bayer Crop Science 2021 Sales (€20.2bn) Sales by Product Line Sales by Region Corn Seed & Traits 26% #1 Market Position North America
Slide 15: Vision / Health For All, Hunger For None
2 Strategy Vision / Health For All, Hunger For None Purpose: Shaping agriculture for the benefit of farmers, consumers and the planet Pillars: Operational Excellence World Class Innovation Digital Transformation New Standards in Sustainability Strategic Ambition Perform: Transform: Grow above market
Slide 16: A Clear Plan to Accelerate Growth and Outperform the Market
3 Operational Performance A Clear Plan to Accelerate Growth and Outperform the Market 1 Deliver growth in crop protection sales through new products, integrated offerings 2 Grow corn seed & traits with annual portfolio refresh and new insect traits 3 Upgrade the Americas to next-gen soybean trait te
Slide 17: Driving Higher Value with Lowest Estimated Environmental Impact
3 Operational Performance Driving Higher Value with Lowest Estimated Environmental Impact Crop Protection Portfolio Relative to Sales and Treated Value 2020 Crop Protection Industry‘s Environmental Impact Key Crop Protection Products Sales Value (EUR) Treated Area (ha) CP Environmental Impact 0% 20%
Slide 18: Herbicides: Focused on Unlocking Greater Flexibility
3 Operational small molecules Performance Herbicides: Focused on Unlocking Greater Flexibility Herbicide sales in 2021: €5.3bn, Pipeline Peak Sales Potential of ~€3bn1 Pre-emergence selective corn herbicide Convintro2 Waterhemp and Palmer Amaranth control in North America • Contains 3 AIs: Thiencarb
Slide 19: Fungicides: New Innovations Drive our Growth Potential
3 Operational Performance Fungicides: New Innovations Drive our Growth Potential Fungicide sales in 2021: €2.9bn, Pipeline Peak Sales Potential of ~€4bn 3 • Adds next-gen technology • Prothioconazole • Powered by Indiflin®1 to Fox Xpro • Trifloxystrobin Fluoxapiprolin MoA • Fluopyram • Offers unriva
Slide 20: Insecticides: New Launches Drive our Global Expansion
3 Operational Performance Insecticides: New Launches Drive our Global Expansion Insecticide sales in 2021: €1.4bn, Pipeline Peak Sales Potential of ~€2bn • Fast-acting and long-lasting • First ketoenol insecticide control of all important expected to offer both foliar and caterpillars and selected P
Slide 21: Biologicals Create New Value; Enable Crop Management Benefits
3 Operational Performance Biologicals Create New Value; Enable Crop Management Benefits Leveraging the Power and Sustainability Derived from Microbes Bayer is the #1 Trusted Brand in Biologicals by Growers4 SeedGrowth Foliar & Soil applied Crop Soilborn Performance Corn Yield Soy Yield Nematicide Fu
Slide 22: #1 in Global Corn Seed & Trait Sales
3 4 Operational Performance #1 in Global Corn Seed & Trait Sales Expect to Widen the Gap with Corn S&T Pipeline with €10-11bn of Peak Sales Potential6 2021 Corn S&T Sales1 Bayer 2022 Corn Seed & Trait Share2 Key Seed Brands In €bn Seed Share & Position3 Trait Share4 U.S. >55% #1 ~85% Bayer 5,2 Brazi
Slide 23: Rollout of Most Advanced Corn Rootworm Control Trait Continues
3 Operational Performance Rollout of Most Advanced Corn Rootworm Control Trait Continues CRW3: Industry’s-Only RNAi-Based Corn Rootworm Trait NEW: 4 Expected LAUNCHED: Brazil/Argentina 20/21 LAUNCHED: U.S. 2022 Launch: U.S. 2024 2021/2022: >4m acres 2022: ~100k acres 3 2023e: >1m acres Corteva QROME
Slide 24: Global Soybean Seed & Trait Sales Leader
3 4 Operational Performance Global Soybean Seed & Trait Sales Leader Upgrading the Americas with Recent XtendFlex and Intacta 2 Xtend Trait Launches 2021 Soybean S&T Sales1 Bayer 2022 Soybean Seed & Trait Share2 Key Seed Brands In €bn Seed Share & Position3 Trait Share4 Bayer 2,2 U.S. >35% #1 >50% B
Slide 25: XtendFlex and XtendiMax Defend #1 Soybean System in NA
3 Operational New Performance Standards in Sustainability XtendFlex and XtendiMax Defend #1 Soybean System in NA ~16m XtendFlex Acres in First Season in North America; >20m in 2022 1 Only system with 14-days residual activity; controls significantly more weeds than the # NA soybean system1 Enlist sy
Slide 26: Next-Gen Intacta Traits to Sustain Leading Franchise in Brazil
3 Operational Performance Next-Gen Intacta Traits to Sustain Leading Franchise in Brazil Intacta 2 Xtend Launched; IP3 Currently in Phase 3, IP4 Advanced to Phase 1 # 1 South America soybean system1 Control IP3 Velvetbean Caterpillar Control IP3 • Excellent control of soybean Soybean Looper Infested
Slide 27: Multiple Traits in Late-Stage Development for Cotton Farmers
3 World-Class Operational biotech Performance Innovation Fourth-Gen Phase 3 Multiple Traits in Late-Stage Development for Cotton Farmers Leading Innovation for Cotton Growers Driving Growth in >€500m1 Cotton S&T Business 1st generation 5 herbicide tolerances 4th generation First-ever biotech trait •
Slide 28: Industry Leading R&D Investment Powers Pipeline Potential
5 4 World-Class Leadership Innovation Industry Leading R&D Investment Powers Pipeline Potential 2021 Ag R&D Investment (€bn) Top Talent: 2,0 >7,100 >100 R&D employees2 Key Collaborations 1,0 1,0 0,9 Generating Next Generation Solutions: >500 15 Hybrids & New Biotech Traits in Bayer Crop Syngenta + C
Slide 29: Pipeline with Up to €30bn Peak Sales Potential Delivering for Farmers
World-Class Innovation Pipeline with Up to €30bn Peak Sales Potential Delivering for Farmers Seed, Trait, Crop Protection and Digital Solutions Peak Sales Potential by Strategic Business Segments Insecticides: ~€2bn • Plenexos Corn S&T: ~€10-11bn • Novel Mite Solution • Annual Germplasm Upgrades • S
Slide 30: Short-Stature Corn Offers Transformational Shift in Production
4 World-Class Innovation Short-Stature Corn Offers Transformational Shift in Production Phase 4 Breeding Approach Expected in U.S. Pilot in 2023; Biotech Approach in Phase 3 Key Features and Benefits of Short-Stature Corn Reduced Crop Loss Precision of Crop Application Increased Environmental Sustai
Slide 31: Three Generations of Soybean Herbicide Tolerance Traits
4 World-Class Innovation Three Generations of Soybean Herbicide Tolerance Traits Technologies Provide Solutions to Address Farmers’ Needs, Herbicide Resistance Challenges 3 herbicide tolerances 5 herbicide tolerances 6 herbicide tolerances • Glyphosate • Glyphosate HT4 • Glyphosate HT5 • Dicamba • D
Slide 32: First New Herbicide MoA in Post Emergence Weed Control in 30 years
4 World-Class Innovation First New Herbicide MoA in Post Emergence Weed Control in 30 years New Herbicide Molecule Project is currently in Phase 3 • Potential to build on #1 position in global herbicides1 • Allows use in various market segments, beyond traditional nonselective use • Herbicide tolera
Slide 33: New Cash Cover Crop to Serve as Low-Carbon Renewable Feedstock
4 World-Class Innovation : New Cash Cover Crop to Serve as Low-Carbon Renewable Feedstock for Growing Biodiesel Market Bayer Acquires Majority Share (65%) in Sustainable Low-Carbon Oilseed Producer CoverCress Inc. (CCI) Example: CoverCress seed fit in Bayer rotational corn/soy crop system Unique Rot
Slide 34: Climate FieldView Digital Tools Reach >200m Subscribed Acres
5 Digital data science Transformation Climate FieldView Digital Tools Reach >200m Subscribed Acres in 23 Countries; Fueled by Grower and Field Trial Performance Data Climate Fieldview >200m subscribed acres Largest database of grower and field trial seed performance #1 brand in digital ag1 data in i
Slide 35: Digital Farming Solutions Underpin and Enhance Our Ability
5 Digital data science Transformation Digital Farming Solutions Underpin and Enhance Our Ability to Bring Transformational Solutions to Agriculture Our Vision for Digital Agriculture Three Core Value Drivers Increase yield and improve profitability Franchise Value Glean insights from data to help ma
Slide 36: Digital Unlocks Scalable Climate-Smart Business Models
5 Digital data science Transformation Digital Unlocks Scalable Climate-Smart Business Models Carbon Markets Valued at >$200bn/year1 and Growing with Consumers' Demand for Sustainability has the potential to Carbon Initiative streamline the way carbon is measured, verified and reported, to enable sca
Slide 37: Enabling New Digital Platforms in Ag
5 Digital data science Transformation Enabling New Digital Platforms in Ag Opens Access to Participate in Broader B2B AgTech Value Pools; Expanding into Digital Marketplaces • JV between Bayer, Bravium, Yara and Itau; Bayer with ~60% stake Collaboration • Connects growers, input providers and grain
Slide 38: The Next Frontier: Evolution to Digitally Enhanced System Solutions
5 Digital Transformation The Next Frontier: Evolution to Digitally Enhanced System Solutions Illustration: NA Smart Corn System Featuring Short Stature Corn Crop System Solutions SEEDS & CROP TRAITS PROTECTION DIGITAL Tailored Solutions Win by being more Field Level grower centric Hybrid Seed Placem
Slide 39: Innovative, Sustainable Solutions to Address Global Challenges
6 New Standards in Sustainability Innovative, Sustainable Solutions to Address Global Challenges Global Challenges Our Goals Our Priorities Our Solutions 30 Producing & • High-yielding, disease-resistant seeds Growing Population Protecting Higher-Yielding • Next-generation biotech traits and Increas
Slide 40: Pharmaceuticals: Driving Continued Long-term Growth
Science for a Better Life Pharmaceuticals: Driving Continued Long-term Growth /////////// Investment Case November 2022 / Bayer AG 40 /// Bayer AG /// Investment Case /// November 2022
Slide 41: Pharmaceuticals: Driving Continued Long-Term Growth
Pharmaceuticals: Driving Continued Long-Term Growth 1 Market & Position 2 Strategy 3 Growth Drivers 4 Innovation 41 /// Bayer AG /// Investment Case /// November 2022
Slide 42: We are Operating in a Rapidly Changing but Attractive Market Environment
1 Market & Position We are Operating in a Rapidly Changing but Attractive Market Environment Driven by Megatrends and the Bio Revolution Pharma Market Market Dynamics Market Size 2021e1 Opportunities Japan • Aging and growing population megatrends China 7% • Rising life expectancy and increased acce
Slide 43: Bayer Pharmaceuticals Holds Strong Positions in Areas of High Unmet Medical Needs
1 Market & Position Bayer Pharmaceuticals Holds Strong Positions in Areas of High Unmet Medical Needs, Generating Growth and Attractive Returns Bayer Pharmaceuticals – Sales and EBITDA margin before special items 2011-20211) Sales by therapeutic area In % for 2021 Other EBITDA Sales margin before He
Slide 44: Strong Volume Expansion in FY 2021
1 Market & Position Strong Volume Expansion in FY 2021 Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Solid topline growth after COVID-19 related restrictions in prior year Volume +6% • Flagship products performed particularly +9% (+
Slide 45: Our Strategy is Geared Towards Continued and Sustainable Long-term Growth
2 Strategy Our Strategy is Geared Towards Continued and Sustainable Long- term Growth, also Addressing Loss of Exclusivity of Major Products Capture the value of the current portfolio and manage LoE for Xarelto & Eylea Grow new potential blockbusters Build digital health solutions Capitalize on Cell
Slide 46: Over the Last Three Years we Successfully Launched Four New Drugs
2 Strategy Over the Last Three Years we Successfully Launched Four New Drugs and Strengthened Pipeline and Technologies Main Building Blocks of Post LoE Growth 1 Late-stage Pipeline Elinzanetant (KaNDy NT-814) in CV & WH PSP ~ €0.5bn PSP ≥ €1.0bn PSP ≥ €1.0bn launched in 2021 launched in 2021 potent
Slide 47: Capturing the Full Commercial Potential of Market Leading Therapies
3 Growth Drivers Capturing the Full Commercial Potential of Market Leading Therapies Guidance FY2022 Guidance FY2022 Higher volumes to largely offset Mid-single digit growth 12 months impact of VBP in China New indications & label updates in 2021 2 Phase III studies with high-dose formulation (initi
Slide 48: Kerendia is a Game Changer for CKD and Type 2 Diabetes Patients
3 Growth Drivers Kerendia is a Game Changer for CKD and Type 2 Diabetes Patients Next milestone in renal disease treatment, continuing our RAAS-centric treatment history Largest clinical program Successful launch trajectory Entresto with unparalleled data1 2020 Weekly TRx (US) Novel MOA intensifies
Slide 49: Kerendia sets the stage for a long-term cardio-renal vision
Kerendia sets the stage for a long-term cardio-renal vision and targets to deliver blockbuster potential Unmet Needs Kidney Dedicated CardioRenal Disease Modifier Need for RAASi intensification Need for earlier use in disease progression Need for disease Establish Kerendia as the Heart failure Non-d
Slide 50: Targeting to Significantly Expand our Presence in Selected Areas of Oncology
3 Growth Drivers We are Targeting to Significantly Expand our Presence in Selected Areas of Oncology where One Blockbuster can Build a Franchise Key elements to achieve our growth aspiration • Continue to build strong prostate cancer franchise with NUBEQA and Xofigo • Realize >€3bn peak sales potent
Slide 51: Prostate Cancer is at #2 of the Most Common Cancer Types in Men
3 Growth Drivers Prostate Cancer is at #2 of the Most Common Cancer Types in Men Worldwide with Significant Unmet Medical Need Estimated number of new cases in 2020, worldwide, males, all ages Characteristics of Prostate Cancer • Usual onset: age >50 years Lung 1,435,943 (14.3%) Other cancers • Diag
Slide 52: Two Highly Consistent Phase 3 Studies Confirm Nubeqa's Strong Clinical Profile
3 Growth Drivers Two Highly Consistent Phase 3 Studies Confirm Nubeqa’s Strong Clinical Profile in Prostate Cancer Treatment Efficacy Study Primary endpoint Selected secondary endpoints Tolerability ARAMIS Metastasis free survival Overall survival nmCRPC prolongation by 22.0 months, 31% risk reducti
Slide 53: We Are Committed to Make Nubeqa Available to a Broad Spectrum of Patients
3 Growth Drivers We Are Committed to Make Nubeqa Available to a Broad Spectrum of Prostate Cancer Patients Patient progression in prostate cancer ~10-15 years (Neo-)Adjuvant Nonmetastatic Metastatic early-stage mid-stage late-stage BCR4 nmCRPC3 mHSPC2 mCRPC1 G7 Drug treated epidemiology ~145k ~85k ~
Slide 54: Nubeqa With the Chance to Become a Foundational Drug
3 Growth Drivers Nubeqa With the Chance to Become a Foundational Drug to Treat Prostate Cancer – Peak Sales Potential of >€3bn • Highly efficacious ARi1 Strong launch performance in nmCRPC • Very consistent set of data from two Weekly TRx (US) Efficacy Phase 3 studies 400 • First to show more than 3
Slide 55: Our Innovation Engine is Delivering
4 Innovation Our Innovation Engine is Delivering 2 Committed and experienced External new leadership team Innovation 1 3 Advancing leading cell and Internal Platform gene therapy business Innovation Companies World leading science added 1 2 3 through new platforms Global R&D Collaborations, CGT SMOL
Slide 56: External Innovation to Accelerate Replenishment of Pipeline
4 Innovation External Innovation to Accelerate Replenishment of Pipeline and Broaden Modalities Selected High-Level Overview Momentum Significantly Increased >40 Transactions signed since 2020 • Deals covering the entire spectrum from equity investments (with LEAPS), over licensing agreements to acq
Slide 57: Elinzanetant Addresses High Unmet Needs for Non-hormonal Treatment
4 Innovation Elinzanetant Addresses High Unmet Needs for Non-hormonal Treatment of Vasomotor Symptoms in Menopausal Women Elinzanetant Typical Vasomotor Symptoms • A first-in-class, non-hormonal, once-daily, oral During Menopause neurokinin-1,3 receptor antagonist • Differentiated, double mode of ac
Slide 58: Significant Progress Has Been Achieved in Anti-coagulation Therapy
4 Innovation Significant Progress Has Been Achieved in Anti-coagulation Therapy but Medical Need Still Exists NOACs Vitamin K Direct Direct FXa Heparin Antagonists LMWH Thrombin Inhibitors (VKA) Inhibitors • Heparin and VKAs were the only anticoagulants available for most of the 20th century • Guide
Slide 59: Hereditary Factor XI Deficiency is Associated with Lower Risk
4 Innovation Hereditary Factor XI Deficiency is Associated with Lower Risk for Cardiovascular and Venous Thromboembolic Events Rate of Venous Thromboembolism Rate of Cardiovascular Events depending on FXI Level depending on FXI Level Factor XI >50% Rate of venous thromboembolism Rate of cardiovascul
Slide 60: Advancing Leading CGT Platform with Strong Clinical Pipeline
4 Innovation Advancing Leading CGT Platform with Strong Clinical Pipeline Example: Two-pronged approach to deliver transformative therapies to treat Parkinson’s Diverse tech platforms and capabilities AAV platform (AskBio and Successful administration Bayer established) of first dose of DA011 to a B
Slide 61: Overview Development Portfolio (as of November 8, 2022)
4 Innovation Overview Development Portfolio (as of November 8, 2022) Phase I (17) Phase II (10) Phase III (9) Elimusertib (ATR Inhibitor) (BAY 1895344) Regorafenib (combi Nivolumab) (BAY 734506) Darolutamide (AR Inhibitor) (BAY 1841788) /// Solid tumors (recurrent or metastatic) /// Prostate Cancer
Slide 62: R&D Developments (since last update on August 4, 2022)
4 Innovation R&D Developments (since last update on August 4, 2022) Phase I Phase II Phase III Commercial Initiation of CCR8 dep Completion of PACIFIC study Announcement of OCEANIC Nubeqa (darolutamide): antibody (immuno oncology) program with FXIa inhibitor study program with FXIa US label extensio
Slide 63: Winning in Consumer Health
Science for a Better Life Winning in Consumer Health /////////// Investment Case November 2022 / Bayer AG 63 /// Bayer AG /// Investment Case /// November 2022
Slide 64: Winning in Consumer Health
Winning in Consumer Health 1 Market & Position 2 Strategy 3 Sustainability 64 /// Bayer AG /// Investment Case /// November 2022
Slide 65: Consumer Health: A Leading Global OTC Player
1 Market & Position Consumer Health: A Leading Global OTC Player Sales development EBITDA margin development Sales by region: €5.3bn % yoy cpa In %, before special items In %, in 2021 FINANCIALS 22,5% 6.5% 22,0% North 34 EMEA 5.2% 20,9% America 39 2.6% 11 16 Asia / Pacific Latin 2019 2020 2021 2019
Slide 66: A Multifaceted Plan to Drive Further Growth
2 Strategy A Multifaceted Plan to Drive Further Growth AMBITION Grow ahead of the market and increase margins WHERE Winning & Balanced Portfolio TO PLAY Growth Modern Optimized HOW focused Innovation Cost & Cash Marketing & Sales TO WIN (esp. in powerbrands) (e.g. precision marketing) (with focus on
Slide 67: Driving Disproportionate Growth in Attractive Segments and Markets
2 Strategy: Growth-Focused Capital Allocation Driving Disproportionate Growth in Attractive Segments and Markets Strong positions in 7 out of Top 10 OTC markets Top 5 position Accelerate growth in fast-growing and profitable markets USA CHINA India South-East Asia 67 /// Bayer AG /// Investment Case
Slide 68: Accelerating Growth from Innovation
2 Strategy: Growth-Focused Innovation Accelerating Growth from Innovation Iconic Global and Local Brands Built over Decades 1898 1930 1934 1940 1943 1950 1983 1992 Note: xx = Year of brand launch 68 /// Bayer AG /// Investment Case /// November 2022
Slide 69: Modernizing Our Brand Building and Sales Capabilities
2 Strategy: Modernized Marketing & Sales Modernizing Our Brand Building and Sales Capabilities Brands with Purpose From Mass to Precision Marketing % Precision 25% 58% 80% marketing1 2018 2021 2024 - Ambition Accelerating E-commerce 3% 10% 15%+ % Net Sales2 2018 2021 2024 - Ambition 1 Percentage of
Slide 70: Taking Bold Steps on Sustainability
3 Sustainability Taking Bold Steps on Sustainability Expand access to everyday health for 2030 Goal 100 million underserved consumers Societal Environmental Health Literacy Accessible Products Carbon Neutral Production Sustainable Products Partnerships & brand purpose Affordable formats, innovations
Slide 71: Sustainability @Bayer
Science for a Better Life Sustainability @Bayer /////////// Investment Case November 2022 / Bayer AG 71 /// Bayer AG /// Investment Case /// November 2022
Slide 72: Sustainability is Integral to Our Values, Strategy and Operations
ESG Overview Group Sustainability is Integral to Our Values, Strategy and Operations We intend to create bold impact and generate sustainable business opportunities Pharmaceuticals Consumer Health Crop Science Megatrends Aging Population Growing Population Pressure on Ecosystems Preserve and Secure
Slide 73: Sustainable Innovation as Foundation for Business Opportunities
ESG Sustainable Innovation as Foundation for Business Opportunities Co-Shaping the We are among the companies that help to shape the ongoing bio-revolution. Our extensive knowledge of human and plant science, supported by our expertise in regulatory Bio-Revolution processes and a global footprint ul
Slide 74: Ambitious Measurable Targets for Sustainable Development
ESG Overview Group Ambitious Measurable Targets for Sustainable Development Our 2030 Targets are in line with UN SDGs and the Science Based Targets Initiative Decrease ECOLOGICAL footprint Help more PEOPLE thrive Climate neutrality at own sites + Support 100m smallholder farmers in LMIC3 reduced emi
Slide 75: We Take Broad Climate Action Along the Value Chain
ESG We Take Broad Climate Action Along the Value Chain 42% less CO2 in our own operations1 by 2029 12.3% less CO2 in the value chain2 by 2029 30% less greenhouse gas emissions3 by 2030 Reduce Carbon Emissions Net Zero by 2050 Reduction Offset remaining emissions with increasing share of removals Gen
Slide 76: We Are on Track in our Decarbonization Journey
We Are on Track in our Decarbonization Journey • Reduced emissions by 11.5% or around 410,000 tons compared to 2020 3.76 3.58 42% less CO2 in our 3.17 2.152 • Reduction mostly due to increase of renewable energy own operations share to approx. 25% of total purchased energy by 2029 & 100% -4.8% -11.5
Slide 77: Support 100m Smallholder Farmers
Support 100m Smallholder Farmers Accessing smallholders improves lives and creates business opportunities Progress Commercial Forecast & Initiatives Challenges 100 45 49 42 • Commercial operations: 2019 2020 2021 2030 Regional commercial strategies focused on smallholders’ needs (baseline) How to ge
Slide 78: Access for 100m Women to Family Planning
Access for 100m Women to Family Planning Catalyst for important societal and economic impact Progress • >200 million women in developing regions who want to avoid pregnancy are not using safe and effective family planning methods, central to women’s empowerment Bayer Products & Capacity Building1 Ch
Slide 79: Access to Self-Care for 100m People in Underserved Communities
Access to Self-Care for 100m People in Underserved Communities Everyday health as the first and last line of care Progress • Ageing population, a rise in lifestyle related diseases and a constantly increasing level of Challenges healthcare costs Access Driven Growth & Strategic Partnerships • Expand
Slide 80: Strong Governance Measures Accompany our Strategy
ESG Strong Governance Measures Accompany our Strategy Our CEO is Chief Sustainability Officer Established Governance Bodies • Supervisory Board ESG Committee advises & monitors management, systematically assesses contribution to SDGs • External Sustainability Council1 as institutionally anchored ind
Slide 81: Important Improvements in ESG Ratings Achieved
ESG Important Improvements in ESG Ratings Achieved Removal of red flags at MSCI and ISS ESG Norm-Based Research in 2021/2022 Agency Score (type) Score 2022 Comments ESG Score A Improvement of Rating from BB to A Controversy level ⚑ (GMO) ⚑ (GMO) removed Risk Score 29.9 (medium) Controversy level and
Slide 82: Investment Thesis Key Takeaways
Key Takeaways Group Overview Investment Thesis Key Takeaways 1 We are a global leader in Health & Nutrition that addresses societal megatrends 2 We are well-positioned to shape disruption in the bio-revolution 3 We expect to translate innovation into profitable mid-term growth 4 We expect to improve
Slide 83: A Global Leader in Health & Nutrition
Science for a Better Life A Global Leader in Health & Nutrition /////////// Investment Case November 2022 / Bayer AG 83 /// Bayer AG /// Investment Case /// November 2022