Bayer Ag · XETR:BAYN
Bayer — Investor Day (February 2020)
41 slides from Bayer's investor day presentation, Feb 13, 2020
Slide 1: Crop Science R&D Pipeline Update
Crop Science R&D Pipeline Update Delivering World Class Innovation /////////// FEBRUARY 13, 2020
Slide 2: Agenda
Agenda President, Crop Science Opening Comments – Liam Condon President of the Crop Science Division Liam Condon Head of R&D, Crop Science Investment & Advancements – Bob Reiter, Ph. D. Head of R&D, Crop Science Division Bob Reiter Breeding Breeding Highlights – Mike Graham, Ph.D. Mike Graham Head o
Slide 3: Forward-Looking Statements
Forward-Looking Statements 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 actual future results, financial si
Slide 4: The World Needs More Innovation in Agriculture
The World Needs More Innovation in Agriculture Demand Supply Need to produce significantly more while protecting 50 % More food, feed & 17 Harvest % natural losses* biofuel* needed ~ 10 bn 12 m resources World population* Ha of agricultural 2017 2050 land loss annually 70 More meat in % 20% reductio
Slide 5: Shaping Agriculture to Benefit Farmers, Consumers and Our Planet
Shaping Agriculture to Benefit Farmers, Consumers and Our Planet As the Industry Leader Uniquely Positioned to Create Value through Innovative Tailored Solutions Seed & Traits We seek to deliver world-class innovation, new standards in sustainability and pioneer a digital transformation in agricultu
Slide 6: Producing Better
Each Plot Future =10 Bushel Yield 2019 2018 2000 1980 Producing Better The history of corn production plot demonstrates the great strides we 1940 have made in producing more with less, and the opportunity we have to continue to “produce better” through tailored solutions that drive us toward our red
Slide 7: Enhancing Sustainability and Biodiversity in Agriculture
Enhancing Sustainability and Biodiversity in Agriculture Bayer’s Sustainability Commitments by 2030 30 Climate-smart practices: Advancing a carbon-zero No-tillage Highly Productive Crops future for agriculture Reduction in field Cover Crops Precision Agriculture through helping our customers reduce
Slide 8: #1 R&D Platform in Crop Science
Unmatched Investment in R&D Powers Industry-Leading Profitability Shaping the Future of Agriculture with Most Productive Innovation Platform in the Industry Ag R&D Investment (€bn)1 #1 R&D Platform in Crop Science 2.3 >7,800 R&D employees in >50 countries 2 1.2 1.0 0.9 >20 large-scale R&D centers Pa
Slide 9: Leveraging Open Model for Incremental and Disruptive Innovation
Leveraging Open Model for Incremental and Disruptive Innovation Enabling Innovation and Effective Delivery on Industry-Leading Pipeline Incremental Innovation Open Innovation Driving transformation towards Model next level data driven R&D organization Annual germplasm upgrades Technology Collaborati
Slide 10: Next Growth Opportunity: Convergence of Leading R&D Platforms
Next Growth Opportunity: Convergence of Leading R&D Platforms Continued Investment in Data Science and New Technologies are Driving Future Opportunity Strong discovery platform 170,000 #1 database for molecules with new microbes in collection of grower and field trial modes-of-action and differentia
Slide 11: Driving the Largest and Most Valuable R&D Pipeline in Ag
Driving the Largest and Most Valuable R&D Pipeline in Ag Converting Investment into Meaningful Products for Farmers Productive and Prolific Pipeline in 2019 Value of Up to €30bn in Peak Sales1 ~45% Incremental Breeding Seeds & Traits Biotech Chemistry 35 Advancements2 generated by projects in seed &
Slide 12: Advancing Agriculture with a Decade of Transformative Products
Advancing Agriculture with a Decade of Transformative Products Key Product Highlights Featured Represent >€22bn3 of Peak Sales Potential Select Planned Product Launches1 Expected Ongoing Refreshment 2020 2021 2022 2023 // 2027 2028 2029 2030 New Soybean Selective New Non-Selective New Mode of New Fo
Slide 13: Advanced Breeding Underpins Leadership in Corn Seed & Traits
Advanced Breeding Underpins Leadership in Corn Seed & Traits Expect to Commercialize >150 Corn Hybrids a Year to Drive Growth in €4.8bn2 Corn Seed & Traits Sales Europe United States Avg. bu/ac advantage1 3-4 #2 Avg. bu/ac advantage1 7-10 #1 Market Pos. Market Pos. Mexico # 1 Market Pos. Avg. bu/ac
Slide 14: Corn Product Design Center
Corn Product Design Center Marana, AZ 14 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020
Slide 15: Two Approaches to Short Stature Corn Advance
Two Approaches to Short Stature Corn Advance Genome Editing Reveals Promising Third Option Three Development Approaches to Short Stature Corn Provide Options to Access Multiple Markets Breeding: ADVANCED TO PHASE 3 Advanced breeding used to introgress naturally occurring short stature characteristic
Slide 16: Short Stature Corn Field Trial
Short Stature Corn Field Trial Sinaloa, MX Winter 2017/2018 16 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020
Slide 17: Short Stature Corn Offers Transformational Shift in Production
Short Stature Corn Offers Transformational Shift in Production Benefits Include Plant Stability, Late Season Applications of Crop Inputs and Efficient Use of Key Nutrients Reduced Crop Loss Acre Opportunity Expanding Enabled by improved plant stability and lodging tolerance Reduces crop loss from ch
Slide 18: Well Positioned to Create Value in Ag with Genome Editing
Well Positioned to Create Value in Ag with Genome Editing Tools and Capabilities Build on Existing Core Competencies to Usher in New Benefits in the Next Decade Transformative Editing Tools Differentiated Enablers First Generation Products Germplasm NEW!: Short Stature Corn created Numerous technolo
Slide 19: XtendFlex Soybeans Advancing to Launch Phase Spring 2020
XtendFlex Soybeans Advancing to Launch Phase Spring 20201 Built on the Proven Performance Roundup Ready 2 Xtend Soybeans # 1 Soybean system planted by farmers Provides exceptional weed control and yield with a triple- Glyphosate stack herbicide-tolerance trait providing growers with the flexibility
Slide 20: Three Generations of Soybean Herbicide Tolerance Traits Advance
Three Generations of Soybean Herbicide Tolerance Traits Advance Industry-Leading Pipeline: Expect Tolerances to Six Herbicide Classes in Soybeans by 2030 herbicide herbicide herbicide 3 tolerances 5 tolerances 6 tolerances Glyphosate Glyphosate Glyphosate Third-Gen Fourth-Gen Fifth-Gen Dicamba Dicam
Slide 21: Intacta 2 Xtend to Broaden Insect and Weed Control Spectrum
Intacta 2 Xtend to Broaden Insect and Weed Control Spectrum Intacta RR2 PRO on >65m Acres in South America in 2018/2019; Intacta 2 Xtend in Phase 4 2nd Gen. 2nd Gen. Soybean Soybean Control Insect Control Control Insect Control Sunflower Looper Infested2 Soybean Looper Infested2 Roundup Ready Brazil
Slide 22: First-Ever Biotech Trait for Piercing and Sucking Insect Control
First-Ever Biotech Trait for Piercing and Sucking Insect Control Lygus and Thrips Control Trait in Cotton in Phase Four with Expected U.S. Launch in 20211 Protein design and optimization resulted in a protein that controls targeted piercing/sucking insect pests through expression in the plant tissue
Slide 23: Enhancements to Identify and Optimize Small Molecule Candidates
Enhancements to Identify and Optimize Small Molecule Candidates Early Safety Testing and Tailored Screening Approaches, Combined with New Data Tools, Collectively Contribute To identify diverse development candidates with a higher probability of regulatory success with new modes-of-action, we consta
Slide 24: Scale, Innovation Underpin Excellent Life Cycle Management
Scale, Innovation Underpin Excellent Life Cycle Management Sustains Value Generation from Crop Protection Small Molecule Chemistry Multi-Dimensional 8x Sales Enablers of Unique Life Cycle Management in Approach to Small Molecule Crop Protection Soil Nematicide Lifecycle Management Fruits & Grapes &
Slide 25: Fox Xpro Fungicide Upgrades Fox Franchise in Brazil
Fox Xpro Fungicide Upgrades Fox Franchise in Brazil Full Control of All Relevant Diseases in Soybeans; €600m Peak Sales Potential Opportunity Builds on #1 position in soybean fungicides1 Long-lasting solution to offer full control of all relevant soybean diseases including Asian Soybean Rust Combine
Slide 26: iblon Fungicide for Cereals Launching in 2020
iblon Fungicide for Cereals Launching in 20203 in New Zealand Novel Solution for Control of Leaf Diseases in Cereals; > €400m Peak Sales Opportunity Builds on #1 position in cereal fungicides1 iblon Technology is an advanced chemistry behind a new family of products powered by Isoflucypram, the late
Slide 27: Vayego Launched; New Broad-Spectrum Insecticide
Vayego Launched; New Broad-Spectrum Insecticide Asia Pacific Focus with Initial Launch in Korea in 2019; >€300m Peak Sales Potential Builds on #1 position in insecticides in horticulture and #3 in both corn and soybeans1 Fast-acting and long-lasting control of all important caterpillars and selected
Slide 28: New Herbicide Molecule Unlocks Greater Flexibility
New Herbicide Molecule Unlocks Greater Flexibility First New Post-Emergence Mode of Action for Broad Acre Weed Control in 30 Years Potential to build on #1 position in global herbicides1 Entirely new mode of action advanced to Phase 2 early development Demonstrates effective control of key resistant
Slide 29: FieldView: The Leading Brand and Platform for Growers
FieldView: The Leading Brand and Platform for Growers Significant Opportunity to Expand Digital Ag Footprint Global Paid Acres1 Growth Fueled by Platform Advantages >95m Most Established, >65 Partners #1 Platform in the Digital Ag space Scalable digital farming infrastructure on the FieldView Platfo
Slide 30: Extensive Data Collection Capability Complements our R&D Data
Extensive Data Collection Capability Complements our R&D Data FieldView Drive Collects, Connects & Digitizes Farmer Activity; Informs, Improves Models & Digital Tools Connected combines on 10-18-19 Connected Months to Collect 10m Connected Hours Combines 32 +17,000 connected combines uploading data
Slide 31: FieldView Seed Advisor Advancing to Commercial Launch
FieldView Seed Advisor Advancing to Commercial Launch Planning to Expand Corn Seed Advisor with Increased Acres in 2020 FieldView Corn Seed Advisor Powered by Millions of Data Points Optimizes Key Grower Decisions Algorithm powered by >6m data points from >7,700 hybrids and 60K+ fields from Bayer R&
Slide 32: Advanced Seed Prescriptions Expected to Launch in LATAM in 2021
Advanced Seed Prescriptions Expected to Launch in LATAM in 2021 Advanced Corn Seed Prescriptions Progresses; Europe, Brazil and Argentina in Phase Three Advanced Seed Prescriptions Improve Global Expansion Opportunity Productivity per Acre Positive yield response from both variable rate seeding scri
Slide 33: Growers Seek Tailored Season-Long Solutions
Growers Seek Tailored Season-Long Solutions Combined R&D Pipeline to Advance and Enhance Grower Experience Throughout the Season Providing the science and tools to make season-long recommendations >35 pipeline projects/models to fuel continual improvements in FieldView recommendations Yield Establis
Slide 34: Key Takeaways
Key Takeaways Delivering World Class Innovation 1 Pursuing sustainable innovation to shape the future of agriculture 2 Delivering the leading R&D pipeline in scale, productivity and value 3 Optimizing large and diverse germplasm library with advanced breeding technologies 4 Leading the development o
Slide 35: Appendix: Crop Science Pipeline
Appendix: Crop Science Pipeline ///////////
Slide 36: Corn R&D Pipeline – Peak Sales Potential: €11-14bn
Corn R&D Pipeline – Peak Sales Potential: €11-14bn R&D Target Technology Phase* Enhancement** R&D Target Technology Phase* Enhancement** Br PBt CP 1 2 3 4 Dev. Subm. Br PBt CP 1 2 3 4 Dev. Subm. YIELD & ABIOTIC STRESS – ~65% of Peak Sales Potential DISEASE MANAGEMENT – ~5% of Peak Sales Potential An
Slide 37: Soybean R&D Pipeline – Peak Sales Potential: €6-8bn
Soybean R&D Pipeline – Peak Sales Potential: €6-8bn R&D Target Technology Phase* Enhancement** R&D Target Technology Phase* Enhancement** Br PBt CP 1 2 3 4 Dev. Subm. Br PBt CP 1 2 3 4 Dev. Subm. YIELD & ABIOTIC STRESS - ~20% of Peak Sales Potential DISEASE MANAGEMENT - ~30% of Peak Sales Potential
Slide 38: Cereals, Oilseed Rape, Cotton, Sugarbeets, Rice R&D Pipelines
Cereals, Oilseed Rape, Cotton, Sugarbeets, Rice R&D Pipelines – Peak Sales Potential: €3-4bn1 R&D Target Technology Phase* Enhancement** R&D Target Technology Phase* Enhancement** Br PBt CP 1 2 3 4 Dev. Subm. Br PBt CP 1 2 3 4 Dev. Subm. YIELD & ABIOTIC STRESS YIELD & ABIOTIC STRESS Annual germplasm
Slide 39: Cereals, Oilseed Rape, Cotton, Sugarbeets, Rice R&D Pipelines (con't)
Cereals, Oilseed Rape, Cotton, Sugarbeets, Rice R&D Pipelines (con’t.) R&D Target Technology Phase* Enhancement** R&D Target Technology Phase* Enhancement** Br PBt CP 1 2 3 4 Dev. Subm. Br PBt CP 1 2 3 4 Dev. Subm. YIELD & ABIOTIC STRESS YIELD & ABIOTIC STRESS Oilseed Rape Annual germplasm upgrades
Slide 40: Horticulture R&D Pipeline – Peak Sales Potential: €3-4bn
Horticulture R&D Pipeline – Peak Sales Potential: €3-4bn R&D Target Technology Phase* Enhancement** R&D Target Technology Phase* Enhancement** Br PBt CP 1 2 3 4 Dev. Subm. Br PBt CP 1 2 3 4 Dev. Subm. YIELD AND ABIOTIC STRESS - ~45% Peak Sales Potential DISEASE MANAGEMENT - ~25% of Peak Sales Potent
Slide 41: Digital R&D Pipeline
Digital R&D Pipeline R&D Target Phase* R&D Target Phase* 1 2 3 4 5 1 2 3 4 5 SEEDS AND PLANTING YIELD ANALYTICS Seed Advisor (US, Corn) NEW Automated Experiment Design (Global, All Crops**) NEW Seed Selection (US, Corn) Automated Experiment Analysis (Global, All Crops**) NEW Designed Hybrid Side-by-