Bayer AG · XETR:BAYN
Bayer — Investor Day (March 2021)
43 slides from Bayer's investor day presentation, Mar 10, 2021
Slide 1: Shaping the Future of Agriculture
Shaping the Future of Agriculture /////////// Capital Markets Day March 10-11, 2021 Liam Condon President of the Crop Science Division
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: The Established Leader in Crop Science
1 Market Position The Established Leader in Crop Science Industry Leading Sales, Profitability and Unmatched Investment in R&D to Fund Future Growth Largest in Sales Highest Profitability Leader in R&D Investment Total Sales1 (€bn) EBITDA1 (€bn) / EBITDA1 Margin (%) R&D Spend1 (€bn) 10.2 8.6 18.8 4.
Slide 4: Global #1 in Seed & Traits with Leading Crop Protection Portfolio
1 Market Position Global #1 in Seed & Traits with Leading Crop Protection Portfolio Sales by Region – Bayer Crop Science Market Positions1 Product areas – Bayer Crop Science In %, based on sales 2020 €18.8bn In %, in 2020 €18.8bn Corn S&T #1 Other Soybean S&T #1 Vegetable Seeds Corn Seed & North 22
Slide 5: Megatrends Drive Market Growth and Need for Innovation
2 Market Megatrends Megatrends Drive Market Growth and Need for Innovation Ag Market Remains Attractive with Expected ~3% CAGR1 to 2030 Demand Supply 3% CAGR 50% 17% More food, feed Harvest losses & biofuel2 needed from climate change2 2020E Global Ag Input Market 10bn 12m World population2 Ha of ag
Slide 6: Four Core Pillars Anchor our Vision to Shape Agriculture
3 Strategy Four Core Pillars Anchor our Vision to Shape Agriculture Plan to Out-Perform the Market and Expand Leadership in Innovation, Digital and Sustainability 4 Core Pillars • Planned Deliverables 2021-24 Grow sales by 3-5%1 ‘22-’24 and deliver a 2024 EBITDA2 margin of 27-29% Accelerate operatio
Slide 7: Accelerate Operational Performance
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Slide 8: A Clear Plan to Accelerate Growth and Outperform the Market
4 Operational Performance A Clear Plan to Accelerate Growth and Outperform the Market 2021: Transition 2022-2024: Acceleration Sales Growth1 EBITDA Margin2 Sales Growth1 EBITDA Margin2 ~ 2% ~23% 3% to 5% 27% to 29% 2024e 1 Deliver growth in crop protection sales through new products, integrated offe
Slide 9: Progressing from Volume to Value with Our Crop Protection Vision
4 Operational Performance Progressing from Volume to Value with Our Crop Protection Vision Begins with Leading Portfolio that Evolves with Innovation, Integrated Offerings and Tailored Solutions Today Future Tailored Outcome-Based Leading Portfolio Integrated Offerings Solutions Value Sharing Conver
Slide 10: Innovation, Integrated Offerings Drive Crop Protection Growth
4 New Standards Operational Performance in Sustainability Innovation, Integrated Offerings Drive Crop Protection Growth Herbicides Fungicides Insecticides 2020 Sales: €4.7bn €2.6bn €1.4bn Sales Growth by Region 2021-’241: 3 to 4% 6 to 7% 6 to 7% Sales Growth by Category 2020-24 2020-24 2020-24 2021-
Slide 11: Herbicides: Integrated Offerings, Innovation Key to Sales Growth
4 New Standards Operational Performance in Sustainability Herbicides: Integrated Offerings, Innovation Key to Sales Growth Pricing, Bayer Plus Offering, XtendiMax with VaporGrip Additional Key Components of Growth Plan Corvus / Adengo Alion and Provence Total Offering Global Corn Sugarcane & Fruits
Slide 12: Fungicides: Innovation Essential Growth Driver
4 New Standards Operational Performance in Sustainability Fungicides: Innovation Essential Growth Driver New Innovations Build on Leading Positions in Fungicides in Soybeans, Cereals and Horticulture Fox Family iblon Luna Family Brazil Soybeans EMEA Cereals Global Fruits & Vegetables • Fox Xpro is a
Slide 13: Insecticides: New Product Launches to Increase Global Reach
4 New Standards Operational Performance in Sustainability Insecticides: New Product Launches to Increase Global Reach New Innovations Support Growth in Established and Developing Markets Velum / Verango Vayego/Reatis Global Horticulture Corn, Horticulture and Rice in APAC • Velum/Verango sets a new
Slide 14: Deploying >150 New Corn Hybrids Annually to Grow Sales
4 New Standards Operational Performance in Sustainability Deploying >150 New Corn Hybrids Annually to Grow Sales Expect 3-4%2 Sales CAGR 2020-’24 in Corn Seed & Traits 2 Europe United States Market Size: ~91m acres # 1 Market Pos. Market Size1: ~60m acres # Market Pos. Germplasm >50% Germplasm ~20%
Slide 15: Corn Insect Trait Upgrades in the Americas Amplify Growth
4 New Standards Operational Performance in Sustainability Corn Insect Trait Upgrades in the Americas Amplify Growth Plan to Launch to VTPro4 in Brazil and Argentina in 2021 and SmartStax Pro in the U.S. in 2022 1 United States and Canada # Key Bayer Corn Trait Offerings: Market Pos. LAUNCH 2020 2022
Slide 16: Upgrading the Americas to Next-Gen Soybean Trait Technology
4 New Standards Operational Performance in Sustainability Upgrading the Americas to Next-Gen Soybean Trait Technology Expect 1-2%2 Sales CAGR 2021-’24, After Stabilizing in 2021 Transition Year United States and Canada Bayer Soybean Trait Offerings: # 1 Market Pos. LAUNCHING 2020 2021 2026/27 F HT4
Slide 17: Drive XtendFlex and XtendiMax to Defend #1 Soybean System
4 New Standards Operational Performance in Sustainability Drive XtendFlex and XtendiMax to Defend #1 Soybean System 15m XtendFlex Acres in First Season in North America Backed by 5-year registration of XtendiMax with VaporGrip # 1 NA soybean system1 Only system with 14-days residual activity; contro
Slide 18: XtendFlex Integrated Weed Mgmt. Tailored Solution Expected 2024
4 Operational Performance XtendFlex Integrated Weed Mgmt. Tailored Solution Expected 2024 Value Proposition: Comprehensive, sustainable and more cost-effective prescriptive weed management system with reduced risk and weed control performance assurance Pre-Plant In-Season Post-Harvest Use field-spec
Slide 19: Intacta 2 Xtend to Broaden Insect and Weed Control Spectrum
4 New Standards Operational Performance in Sustainability Intacta 2 Xtend to Broaden Insect and Weed Control Spectrum Intacta RR2 PRO on >85m acres in South America in 2019/20; Intacta 2 Xtend in Phase 4 # 1 South America soybean system1 • >85m 2020 acres in LATAM in • Built on the proven performanc
Slide 20: New Solutions in Cotton and Vegetables Round Out Growth Plan
4 Operational Performance New Solutions in Cotton and Vegetables Round Out Growth Plan Vegetable Seeds Key Growth Drivers 2020-’24 Other Key Growth Drivers 2020-’24 • Recovery of cotton acres in Australia post-drought • Share growth in the U.S. and Brazil cotton market • U.S. stewarded launch of Bol
Slide 21: Synergy Achievement Accelerated
4 Operational Performance Synergy Achievement Accelerated Additional Efficiency Program until 2024 Announced September 2020 ~€870m1 Post-Merger Cost Synergies Accelerated; Expect Completion in 2021 Annual Cost Synergies (% achieved) 100% 100% • Expect to reach 100% of the post-merger cost synergy >
Slide 22: Deliver World-Class Innovation
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Slide 23: Unmatched Innovation Pipeline is Set to Drive Growth
5 World-Class Innovation Unmatched Innovation Pipeline is Set to Drive Growth Total Pipeline Peak Sales Potential up to €30bn2; ~50% Incremental Other, Vegetable Seeds, Corn S&T Soybean S&T Herbicides Fungicides Insecticides Environmental Science Peak Sales Potential ~€10-11bn ~€4-5bn ~€3bn ~€3bn ~€
Slide 24: Short-Stature Corn
5 World-Class Innovation set the stage for short-stature corn /// Bayer Capital Markets Day /// Shaping the Future of Agriculture /// March 10-11, 2021
Slide 25: Short-Stature Corn Offers Transformational Shift in Production
5 World-Class Innovation Short-Stature Corn Offers Transformational Shift in Production Anticipated Fit on >220m Acres Enabled by Three Development Approaches Field Plots Around the Globe Demonstrate Key Features and Benefits of Short-Stature Corn Game-Changing Innovation Digitally Optimized System
Slide 26: Envision Full System Recommendation with Short-Stature Corn
5 World-Class Innovation Envision Full System Recommendation with Short-Stature Corn Value Drivers Converging: Inherent benefits of new short corn technology plus tailored solutions and new business model concepts (seed advisor, weed management, disease management, fertility management, risk sharing
Slide 27: HT4: Industry-First Five-Tolerance Soybean Trait Stack
5 World-Class Innovation HT4: industry-first five-tolerance soybean trait stack 27 /// Bayer Capital Markets Day /// Shaping the Future of Agriculture /// March 10-11, 2021
Slide 28: Five Herbicide Tolerant Soybean Trait Stack Planned Game-Changer
5 New Standards World-Class Innovation in Sustainability Five Herbicide Tolerant Soybean Trait Stack Planned Game-Changer Anticipate Launching Industry-First 4th Gen. Herbicide Tolerance (HT4) Soybeans in 2026/27 5 Herbicide Tolerances Exceptional Weed Control Potential Opportunity Across >180m • On
Slide 29: Expect HT4 Soybean Weed Mgmt. Tailored Solution by 2026/27
5 World-Class Innovation Expect HT4 Soybean Weed Mgmt. Tailored Solution by 2026/27 Industry-First Five Mode-of-Action Trait System with Proprietary Herbicides and Digital Prescription Pre-Plant In-Season Post-Harvest Pre-Plant and Planting: In Season: Harvest/Post-Harvest: Seed Advisor variety and
Slide 30: Leaps by Bayer Pursuing Breakthrough Technologies in Ag
5 World-Class Innovation Leaps by Bayer Pursuing Breakthrough Technologies in Ag Focused on Sustainable Productivity and to Produce Better Food with Improved Nutrition Leap #3 Reduced Environmental Impact of Agriculture Leap #10 Transformational Digital Business Models • Vision: Grow vertical farmin
Slide 31: Pioneer Digital Transformation
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Slide 32: Digital Platform is Core To Driving Growth
6 Digital Transformation Digital Platform is Core To Driving Growth Enabler of Tailored Solutions and New Business Models Expand 1 • ~150m subscribed acres in 2020 • Largest database of grower Industry- and field trial seed Leading • #1 brand in digital ag performance data in industry Platform • Ope
Slide 33: Creating More Value Through Tailored Solutions
6 New Standards Digital Transformation in Sustainability Creating More Value Through Tailored Solutions Utilizing Tailored Solutions to Power New Business Models The Opportunity: By combining world-class product R&D with data science driven product recommendations and outcome-based offers, Bayer can
Slide 34: Pioneering Climate-Smart Business Models
6 Digital Transformation Pioneering Climate-Smart Business Models Sequestering Carbon at Scale, Creating a New Revenue Stream on Farm 1 Assist in the Adoption of Climate Smart Practices to reduce greenhouse gases and capture carbon in the soil 2 Standardize the way carbon is measured, verified and r
Slide 35: Set New Standards in Sustainability
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Slide 36: Setting the Standard for Sustainability and Biodiversity in Agriculture
7 New Standards in Sustainability Setting the Standard for Sustainability and Biodiversity in Agriculture Bayer’s 2030 Sustainability Commitments Advancing a carbon-zero future for agriculture 30 Reduction of field • Climate-smart practices: • No-tillage Highly Productive Crops • Cover Crops Precisi
Slide 37: Lowest Environmental Impact Driving Higher Value
7 New Standards in Sustainability Lowest Environmental Impact Driving Higher Value Bayer’s Crop Protection Environmental Impact Exceptionally Low; Further Reductions Planned by 2030 2018 Crop Protection Environmental Impact • Bayer applied latest state of the art methodology to measure impact of por
Slide 38: Empower ~100m of the >550m Global Smallholders
7 New Standards in Sustainability Empower ~100m of the >550m Global Smallholders Focused on LMIC Countries to Generate Highest Impact; India and China Particularly Relevant Europe/Middle East APAC Asia-Pacific Smallholder Reach 2020: ~30m Focus Crops : rice, cotton, vegetables, corn Latin America Sm
Slide 39: Smallholders: Improving Lives and Driving Business Growth
7 New Standards in Sustainability Smallholders: Improving Lives and Driving Business Growth Smallholder Sales Expected to Grow from €1.7bn to > €3bn1 by 2030 Smallholder Farming Reach (million farmers) Regional commercial strategies focused on smallholders’ needs 100 +55m • Access to customized inno
Slide 40: Spotlight on India: Strong Foundation for Future Opportunity
Spotlight on India: Strong Foundation for Future Opportunity Striving to Meet the Challenges of Feeding a Growing Population Sustainably A Smallholder Farming Powerhouse 150 m smallholder farmers, 170 m ha; diversified crop landscape €5 billion ag input market1 Leading exporter of many cash crops; s
Slide 41: Experienced and Committed Executive Leadership Team
8 Leadership Team Leadership Team Experienced and Committed Executive Leadership Team Working Together to Deliver Better Solutions for Growers, Consumers and the Planet Liam Condon President, Crop Science Brett Begemann Jacqueline Bob Reiter Applegate Dirk Backhaus Global Commercial Operations Resea
Slide 42: Crop Science Mid-Term Targets
9 Financials Enable Growth Crop Science Mid-Term Targets A Clear Plan to Outperform the Market and Expand Industry-Leading Profitability Sales / Sales Growth Divisional Drivers At month-end CAGR cpa Actual cpa Dec. 20 rates1 2020-’242 Sales: 2020 2021e 2021e 2022-‘24e 3-4% • Herbicides: Xtendimax wi
Slide 43: Key Takeaways
10 Key Takeaways Shaping the Future of Agriculture Key Takeaways 1 Established sales, profitability and R&D leader in crop science 2 Megatrends drive market growth and need for innovation 3 Accelerating growth to outperform the market 4 Advancing agriculture with a decade of transformative products