Bayer AG · XETR:BAYN
Bayer — Investor Day (March 2021)
17 slides from Bayer's investor day presentation, Mar 10, 2021
Slide 1: Winning in Consumer Health
Winning in Consumer Health /////////// Capital Markets Day March 10-11, 2021 Heiko Schipper President of the Consumer Health Division 1 /// Bayer Capital Markets Day /// Winning in Consumer Health /// March 10-11, 2021
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: Consumer Health: A Leading Global OTC Player
Consumer Health: A Leading Global OTC Player Sales development EBITDA margin development Sales by region In €m / % yoy cpa In %, before special items In %, in 2020 FINANCIALS 22.0% North 5.2% 34 EMEA 20.9% America 42 20.1% 2.6% -0.7% 11 13 2018 2019 2020 Asia / Pacific Latin 2018 2019 2020 America C
Slide 4: A Leading Global Consumer Health Player
1 Winning Portfolio A Leading Global Consumer Health Player # 3 OTC Player Rank #1 Strong positions in 7 out of Top 10 OTC markets Cardiovascular Rank #2 Rank #4 Nutritionals Pain 4% 12% Top 5 position 26% Rank #5 CCSF 9% Rank #3 Allergy 13% Rank #3 22% Digestive 14% Rank #2 Health Dermatology CCSF
Slide 5: We Have Successfully Moved From Underperformer to Outperformer
1 Performance We Have Successfully Moved From Underperformer to Outperformer Net Sales Growth % cpa 5.2% EBITDA margin Bayer (before special items) Peer average* % of Net Sales 2.8% 22.0% 2.6% 1.4% 1.3% 20.9% 20.1% 2018 2019 2020 -0.7% Δ vs -350 bps +120 bps +390 bps peer avg.* 2018 2019 2020 * peer
Slide 6: Actively Manage a Winning Portfolio in an Attractive Market
2 Future Market Growth Actively Manage a Winning Portfolio in an Attractive Market Six key growth drivers shaping the industry mid-term Consumer focus Trusted, 2-4% on preventive care science-based brands Broad-based growth Digital opportunities annual market in all geographies across the value chai
Slide 7: Our Game Plan
3 Strategy Plan Our Game Plan AMBITION Grow ahead of the market and increase margins WHERE Winning Portfolio TO PLAY HOW TO WIN Driving growth Modernizing Optimizing focused Innovation Marketing & Sales Costs & Cash OUR Digital Transformation ACCELE- RATORS Sustainability 7 /// Bayer Capital Markets
Slide 8: Driving Disproportionate Growth in Attractive Segments and Markets
4 Where to play: Growth-Focused Capital Allocation Driving Disproportionate Growth in Attractive Segments and Markets Innovate and invest in attractive demand spaces Accelerate growth in fast-growing and profitable markets USA CHINA Personalized nutrition India South-East Asia Backed by science Digi
Slide 9: Accelerating Growth From Innovation
5 How to win: Growth-Focused Innovation Accelerating Growth From Innovation A science-based Skin Care Brand that restores People’s Skin Confidence from the Inside Out DAILY CARE DRY & SENSITIVE SKIN MEDICATED SKIN CARE CREATION & LAUNCH 9 /// Bayer Capital Markets Day /// Winning in Consumer Health
Slide 10: Modernizing Our Brand Building and Sales Capabilities
5 How to win: Modernized Marketing & Sales Modernizing Our Brand Building and Sales Capabilities Brands with Purpose From Mass to Precision Marketing % Precision 25% 50% 80% marketing1 2018 2020 2024 - Ambition Accelerating E-commerce 3% 7% 15%+ % Net Sales2 2018 2020 2024 - Ambition 1 Percentage of
Slide 11: Continuing to Optimize Costs and Cash
5 How to win: Optimizing Costs & Cash Continuing to Optimize Costs and Cash Gross Margin SG&A Cashflow • Net Price Realization • Agile Organization • Efficiencies in Order-to-Cash • Production cost efficiencies • Efficiency Programs • Capital Expenditures 11 /// Bayer Capital Markets Day /// Winning
Slide 12: Digital Transformation of our Business, People and Systems
6 Our Accelerators: Digital Transformation Digital Transformation of our Business, People and Systems …INVEST IN OUR PEOPLE, DIGITIZE OUR BUSINESS… TECHNOLOGY AND DATA 80% Of media spend on data- driven precision marketing 100% Employees digital ready & strategic capabilities insourced 90% Reduction
Slide 13: Taking Bold Steps on Sustainability
6 Our Accelerators: 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 13 /// Bayer Capital Markets Day /// Winni
Slide 14: Sustainable Profitable Growth
7 Financials: Mid-term Targets Sustainable Profitable Growth Sales / Sales Growth Divisional Drivers act At constant At month-end Dec’ 20 rates² currencies1 2020 2021e 2021e 2022-‘24e • Net Sales to grow above market Consumer €5.1bn 18.8 2 to 3% ~€5bn 3 to 5% Health • cEBITDA improvement through gro
Slide 15: A Leadership Team With Proven Track Record
Leadership Team Leadership Team A Leadership Team With Proven Track Record Heiko Schipper President, Consumer Health Patrick Stefan Meyer Lance Yuen Arturo Sanchez Lockwood-Taylor Commercial Operations EMEA Commercial Operations APAC Commercial Operations LATAM Commercial Operations NA Patricia Cors
Slide 16: Key Takeaways
8 Key Takeaways Key Takeaways 1 Moved from underperformer to outperformer in 18 months 2 Accelerating growth through innovation, digitization and portfolio choices 3 Driving margin and cashflow improvement 4 A winning Consumer Health Company, with a Leadership Team that executes well 16 /// Bayer Ca
Slide 17: Thank You!
Thank You! /////////// /// Bayer Capital Markets Day /// Winning in Consumer Health /// March 10-11, 2021