Bayer AG · XETR:BAYN
Bayer — Q2 2019 Earnings Presentation
25 slides from Bayer's earnings presentation, Jul 30, 2019
Slide 1: Investor Conference Call Q2 2019 Results
Pictures to be updated Investor Conference Call /////////// Q2 2019 Results July 30, 2019 Werner Baumann, CEO Wolfgang Nickl, CFO
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: Q2 2019 Results: Business Update
Q2 2019 Results Business Update /////////// Werner Baumann, CEO
Slide 4: Bayer Operationally on Track
Bayer Operationally on Track € 11,485m € 2,927m Sales increased by 21% to €11.5bn (+1% cpa) Sales EBITDA EBITDA before special items Before special items improved by 25% to €2.9bn Margin up 70 bps to 25.5% Core EPS plus 6% to €1.62 € 1.62 € 751m Free Cash Flow impacted by timing of closing
Slide 5: Progress in all Focus Areas
Progress in all Focus Areas 1 2 Target Delivery Crop Science Guidance for 2019 confirmed, Operations impacted by extreme yet ambitious weather conditions Integration proceeding as planned 3 4 Pharmaceuticals Consumer Health Positive pipeline news Positive sales and profit development Con
Slide 6: Crop Science: Solid Performance in a Very Challenging Environment
Crop Science: Solid Performance in a Very Challenging Environment Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. - 3% + 1% -3% 4,788 Price Portfolio + % 0 + 61% -3% cpa sales reduction driven by adverse 3,011 business conditions in North America Good growth across insecticides a
Slide 7: 2019 U.S. Planting Heavily Impacted by Flooding
2019 U.S. Planting Heavily Impacted by Flooding Corn Acres Expected to be Down 2-3% and Soybean Acres to Decline Between 7% and 10% vs Last Year May 2019 - Precipitation in many U.S. states „much above average“ or „record wettest“ Source: USDA Weekly Weather and Crop Bulletin, June 11, 2019; USDA Cr
Slide 8: Pharmaceuticals Driven by Xarelto, Eylea and China
Pharmaceuticals Driven by Xarelto, Eylea and China Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. + 4% + 1% +4% 4,217 4,422 Price Portfolio - 0% - 0% Xarelto up 12%, Eylea grew by 11% Continued strong performance in China overcompensates weaker US business Q2'18 Q2'19 FDA gran
Slide 9: Consumer Health Returning to Top- and Bottom Line Growth
Consumer Health Returning to Top- and Bottom Line Growth Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. 0 + % + 1% +2% 1,442 Price Portfolio 1,413 2 + % - 1% EMEA, Asia/Pacific and Latin America with positive development North America bottoming out, double-digit growth in allerg
Slide 10: Q2 2019 Results: Financials & Outlook
Q2 2019 Results Financials & Outlook /////////// Wolfgang Nickl, CFO
Slide 11: Q2 Results
Q2 Results Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy, (Fx & portfolio adj.) In million €, before special items In €, Cont. Operations In million € - Positive Fx effect of €113m - Negative Fx effect of €59m after hedging - # of shares increased from 916m to 982m - Impacted by timing o
Slide 12: Bridge: From Core EPS to Reported EPS
Bridge: From Core EPS to Reported EPS in € 1,80 Impairment losses related to the 1,60 divestment of Dr. Scholl’s foot care portfolio 1,40 -0.43 1,20 -1.10 1,00 0,80 1.62 -0.67 0,60 0,40 -0.45 0,20 0.40 0.41 0,00 -0.06 Core EPS Amortization intangbile Special items Special items financial result/ Tax
Slide 13: Net Financial Debt: On Track to Meet FY 2019 Guidance of ~€36bn
Net Financial Debt: On Track to Meet FY 2019 Guidance of ~€36bn* in € million 45,000 270 1,243 -230 -4,431 40,000 35,000 43,239 41,956 38,808 36,000* 10,000 5,000 0 Gross Financial Debt Bank Liabilities Commercial Paper Other Financial Gross Financial Debt Cash/Other Financial Net Financial Debt Net
Slide 14: Business Drivers to be Considered for H2 2019
Business Drivers to be Considered for H2 2019 Crop Science Pharmaceuticals Corn and soybean commodity prices up which Xarelto, Eylea and China expected to may lead to positive volume impact in H2 keep on growing Market growth in H2 expected to be strong in Launch of Darolutamide in the US La
Slide 15: FY 2019 Guidance Confirmed, Yet Ambitious
FY 2019 Guidance Confirmed, Yet Ambitious 20181 Group Forecast 20192 Δ 2018 – 2019 (at constant currencies) Sales €39.6bn ~€46bn +~16% Fx-sensitivity: (thereof +~12% portfolio) ± 1% change of the € vs all other currencies = EBITDA €9.5bn ~€12.2bn +~28% ∓ ~€340m on Sales (before special items) & ∓ ~€
Slide 16: Focus Areas
Focus Areas 1 2 Target Delivery Crop Science Deliver on operational targets Integration of acquired business to shape the future of agriculture 3 4 Pharmaceuticals Consumer Health Further strengthening of pipeline Drive performance improvement and intensify external sourcing 5 6 Efficiency /
Slide 17: Investor Conference Call
Pictures to be updated Investor Conference Call /////////// Q2 2019 Results July 30, 2019 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 18: Animal Health Performance on Track for Full Year
Animal Health Performance on Track for Full Year Sales Volume Currency In million €, ∆% yoy, Fx & portfolio adj. - 7% + 3% 453 –3% 454 Price Portfolio + 4% ± % 0 -3% sales decline vs strong growth in PY (+8%) Seresto, Baytril and Drontal with positive development Q2'18 Q2'19 Slight decrease in
Slide 19: H1 2019 Results
H1 2019 Results Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy, (Fx & portfolio adj.) In million €, before special items In €, Cont. Operations In million € - Positive Fx effect of €221m - Negative Fx effect of €169m - # of shares increased from 901m to 981m - Impacted by timing of closin
Slide 20: H1 2019 - Segment Overview
H1 2019 - Segment Overview Crop Science Pharma Consumer Health Animal Health In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. In million €, ∆% yoy, Fx & portfolio adj. +1% 11,232 +5% 2,822 +0% 2,837 –2% 8,292 8,776 867 875
Slide 21: From EBITDA Before Special Items to Core EPS (Q2 2019)
From EBITDA Before Special Items to Core EPS (Q2 2019) P&L Q2 2018 Q2 2019 € million € million EBITDA before special items 2,348 2,927 Mainly related to acquisition and integration costs Special items -317 -441 (€112m) and restructuring costs (€248m) Reported EBITDA 2,031 2,486 Depreciation & Amorti
Slide 22: From EBITDA Before Special Items to Core EPS (H1 2019)
From EBITDA Before Special Items to Core EPS (H1 2019) P&L H1 2018 H1 2019 € million € million EBITDA before special items 5,244 7,115 Mainly related to acquisition and integration costs Special items -395 -1,491 (€604m) and restructuring costs (€641m) Reported EBITDA 4,849 5,624 Depreciation & Amor
Slide 23: Free Cash Flow Generation
Free Cash Flow Generation Q2 2018 Q2 2019 H1 2018 H1 2019 € million € million € million € million Net cash provided by operating activities 2,240 1,600 2,898 2,679 Cash outflows for PPE and intangible -459 -458 -808 -853 assets Interest and dividends received 123 58 145 82 Interest paid/received (in
Slide 24: FY 2019 Guidance
FY 2019 Guidance Sales 2018 EBITDA-margin 2018 Sales Growth 2019 EBITDA-margin (before special items) (cpa2) 2019 (before special items) (at constant currencies) Crop €14.3bn1 18.6% ~4% ~25% Science Pharma €16.7bn 33.4% ~4% ~34% Consumer €5.5bn 20.1% ~1% ~21% Health Animal €1.5bn 23.9% ~4% ~24% Heal
Slide 25: 2019 Guidance for other Key Data of the Group
2019 Guidance for other Key Data of the Group At constant currencies and going concern Special items (EBITDA) ~€2.0 billion R&D expenses ~€5.5 billion Capital expenditures ~€2.9 billion of which for intangible assets ~€0.8 billion Depreciation and amortization ~€4.3 billion of which for intangible a