Bayer AG · XETR:BAYN
Bayer — Q3 2021 Earnings Presentation
23 slides from Bayer's earnings presentation, Nov 9, 2021
Slide 1: Investor Conference Call Q3 2021 Results
Investor Conference Call /////////// Q3 2021 Results November 9, 2021 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: Q3 2021 Results: Business Update
Q3 2021 Results Business Update /////////// Werner Baumann, CEO
Slide 4: Strong Quarter, Full-Year Guidance Updated
Strong Quarter, Full-Year Guidance Updated 1 Continued strong sales growth momentum in all divisions 2 Double-digit earnings increase 3 Progress on innovation 4 Bayer Q3 2021 Investor Conference Call /// November 9th, 2021
Slide 5: Q3 2021 Results: Business Performance & Outlook
Q3 2021 Results Business Performance & Outlook /////////// Wolfgang Nickl, CFO
Slide 6: Q3 2021: Double Digit Growth in Top- and Bottomline
Q3 2021: Double Digit Growth in Top- and Bottomline Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy In million €, before special items In €, Cont. Operations In million € +15% (+14% cpa) 9.781 8.506 +16% 2.089 +58% 1.954 1.795 +30% 1,05 1.237 0,81 21.1% 21.4% Q3'20 Q3'21 Q3'20 Q3'21 Q3'20
Slide 7: YTD 2021: Strong Performance despite Currency Headwinds
YTD 2021: Strong Performance despite Currency Headwinds Sales EBITDA Core EPS Free Cash Flow In million €, ∆% yoy In million €, before special items In €, Cont. Operations In million € +5% (+9% cpa) 32.963 31.405 -3% 9.069 8.784 +4% 5,07 5,25 1.846 28.9% 26.6% -120 YTD'20 YTD'21 YTD'20 YTD'21 YTD'20
Slide 8: Crop Science with Strong Year-over-Year Performance
Crop Science with Strong Year-over-Year Performance Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Strong sales growth driven by Volume • Glyphosate price increases, particularly +14% +27% in North America (+26% cpa) 3.850 • Lower pr
Slide 9: Pharma Progresses Well with New Products
Pharma Progresses Well with New Products Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Eylea (+19% cpa) with strong growth in all regions Volume +7% +9% (+7% cpa) • Xarelto (+4% cpa) overall volume 4.539 increases offsetting price r
Slide 10: Consumer Health Sustains Strong Growth Momentum
Consumer Health Sustains Strong Growth Momentum Sales Sales EBITDA Key Messages InIn million €,€, million ∆% yoy, ∆% yoycpa. In million €, before special items • Continued growth momentum across regions and categories Volume +12% +8% (+11% cpa) • Nutritionals (+20% cpa) remain key driver 1.346 • Pai
Slide 11: We Update Our Full-Year Guidance for 2021
We Update Our Full-Year Guidance for 2021 Excluding currency impact Outlook Outlook Expected Outlook as of Aug 20211 as of Nov 2021 currency impact² as of Nov 2021 incl. currency impact Sales ~ €44bn ~ €44bn ~ -€1bn ~ €43bn EBITDA margin ~ 26% ~ 26% ~ -50 bps ~ 25.5% (before special items) Core EPS
Slide 12: Increased Sales Growth for Crop Science and Consumer Health
Increased Sales Growth for Crop Science and Consumer Health Guidance at constant currencies* Sales Growth Sales Growth EBITDA-margin Est. Market Division Growth 2021 2021 (cpa) 2021 (cpa) 2021 as of Aug as of Nov (before special items) Crop ~ 5% ~ 7% ~ 9% ~ 24%1 Science Pharma ~ 5% ~ 6% ~ 6% ~ 32% C
Slide 13: Investor Conference Call Q3 2021 Results
Investor Conference Call /////////// Q3 2021 Results November 9, 2021 Werner Baumann, CEO Wolfgang Nickl, CFO
Slide 14: Full-Year Guidance for Other Group KPIs Unchanged
Full-Year Guidance for Other Group KPIs Unchanged Excluding currency impact Outlook1 Expected Outlook currency impact² incl. currency impact Special items (EBITDA) ~ €4.5bn no material effect ~ €4.5bn Depreciation and amortization (clean) ~ €4.0bn ~ €3.9bn -€0.1bn of which for intangible assets (cle
Slide 15: Q3 2021: Key KPIs Bayer Group
Q3 2021: Key KPIs Bayer Group Q3 2020 Q3 2021 Net Sales 8,506 9,781 EBITDA before special items 1,795 2,089 Special items -901 -689 Reported EBITDA 894 1,400 Depreciation & Amortization -10,293 -870 1 Reported EBIT -9,399 530 Amortization and impairment losses / loss reversals on intangible assets 9
Slide 16: Q3 2021: Key KPIs by Division
Q3 2021: Key KPIs by Division Crop Science Pharmaceuticals Consumer Health Reconciliation Group [€ million] Q3'20 Q3'21 Q3'20 Q3'21 Q3'20 Q3'21 Q3'20 Q3'21 Q3'20 Q3'21 Sales 3,028 3,850 4,229 4,539 1,205 1,346 44 46 8,506 9,781 Sales by region: Europe / Middle East / Africa 656 748 1,669 1,842 413 4
Slide 17: Core EPS to EPS bridge
Core EPS to EPS bridge in € -0.51 1.05 -0.70 0.09 -0.01 0.26 Core EPS Depreciation & Special items Special items Tax effect EPS (total) Q3'2021 Amortization (EBITDA) financial result/ on adjustments Q3'2021 (on IP & PPE) taxes 17 Bayer Q3 2021 Investor Conference Call /// November 9th, 2021
Slide 18: Innovation
Innovation 18 Bayer Q3 2021 Investor Conference Call /// November 9th, 2021
Slide 19: Key Pharma R&D Developments in Q3 2021
Key Pharma R&D Developments in Q3 2021 • US-launch for the treatment of chronic kidney disease in patients with type 2 diabetes Kerendia (Finerenone) • Initiation of a Phase III study in patients with non-diabetic chronic kidney disease • Presentation of Phase III FIGARO-DKD data and FIDELITY pooled
Slide 20: Pharmaceuticals Division: Overview Development Portfolio
Pharmaceuticals Division: Overview Development Portfolio (as of November 2021) Phase I (24) Phase II (19) Phase III (9) Rogaratinib (pan-FGFR Inhibitor) Urothelial Cancer /// Rogaratinib (pan-FGFR Inhibitor) Prostate Cancer (mHSPC) /// Darolutamide (AR Inhibitor) Elimusertib (ATR Inhibitor) Colorect
Slide 21: Crop Science Division: R&D Pipeline (Seeds & Traits)
Crop Science Division: R&D Pipeline (as of March 2021) Key Corn Seed & Traits, Soybean Seed & Traits and Other Projects with ~€19-€22bn Peak Sales Potential; ~50% Incremental Phase I Phase II Phase III Phase IV Life Cycle Mgmt.1 Digital Disease Mgmt. Short Stature Corn – Breeding Approach Corn Rootw
Slide 22: Crop Science Division: R&D Pipeline
Crop Science Division: R&D Pipeline (as of March 2021) Key Herbicides, Fungicides and Insecticides Projects with ~€8bn Peak Sales Potential; ~50% Incremental Phase I Phase II Phase III Phase IV Life Cycle Management1 New AI Development Non-Selective Novel PPO Herbicide2 Improved Dicamba Formulations
Slide 23: Consumer Health Division: Accelerating Growth with Innovation
Consumer Health Division: Accelerating Growth with Innovation Selected Examples of Recent Launches or Approvals Astepro Rx-to-OTC Switch AleveX Topical Pain Relief Solutions Bepanthen extension to Dry Skin (launch in 2022) (launched 2021) (launched 2021) First OTC Steroid-Free Antihistamine Expa