Q2 2014 Bayer Continues Positive Business Development July 30, 2014 / Marijn Dekkers, CEO • Q2 2014 Investor Conference Call • Marijn Dekkers Page 1
May 08, 2015
Q2 2014Bayer Continues Positive Business Development
July 30, 2014 / Marijn Dekkers, CEO
• Q2 2014 Investor Conference Call • Marijn Dekkers Page 1
DisclaimerThis presentation may contain forward-looking statements based on currentassumptions and forecasts made by Bayer Group or subgroup management.
Various known and unknown risks, uncertainties and other factors could lead tomaterial differences between the actual future results, financial situation,development or performance of the company and the estimates given here.These factors include those discussed in Bayer’s public reports which areavailable on the Bayer website at www.bayer.com.
The company assumes no liability whatsoever to update these forward-lookingstatements or to conform them to future events or developments.
• Q2 2014 Investor Conference Call • Marijn DekkersPage 2
Page 3
Q2 2014 – Operational and Strategic Progress
Strong organic top line growth, in particular in Life Sciences
Underlying EBITDA improvement negatively impacted by
minus €160m FX effect
Business portfolio significantly strengthened
Merck & Co. OTC acquisition & sGC pharma collaboration signed
Divestiture of Interventional business signed
Full-year Group Guidance 2014 maintained
• Q2 2014 Investor Conference Call • Marijn Dekkers
Page 4
EBITin € million
+14%
1,4731,287
Salesin € million% currency & portfolio adj.
+6%
10,45810,360
EBITDAadjusted**in € million
+1%*
2,2172,195
Core EPSin €
* +8% if FX effect of -€160m is added back**before special items
Q2’14Q2’13 Q2’14Q2’13 Q2’14Q2’13 Q2’14Q2’13
Q2 2014 – Earnings Performance Impacted By Significant Currency Headwind
• Q2 2014 Investor Conference Call • Marijn Dekkers
-1%
1.531.54
Q2 2014 – Regional Performance: Growth Led by Emerging Markets
Page 5
Africa & Middle East
EasternEurope
Emerging Markets
EmergingMarkets¹
+8%
Others²+7%
USA+6%
Western Europe+4%
Group Sales by Region
Group €10,458m; +6%
~1,100
+13%~1,500
+7%
~400
+1%~700
+8%
¹ Emerging economies include: Latin America, Asia w/o Japan, Australia,New Zealand, Africa and Middle East incl. Turkey, Eastern Europe
² Others = Japan, Australia, New Zealand, Canada³ Emerging Asia = Asia w/o Japan, Australia, New Zealand
In € million, ∆% yoy Fx adjusted
36%
11%32%
21%
Latin America
EmergingAsia³
• Q2 2014 Investor Conference Call • Marijn Dekkers
Q2 2014 –Cash Flow And Net Debt Development
Page 6
+€0.9bn 9.9GCF oFCF
1,705
Invest-ments
529 1,072
∆y-o-y +1% +4%
NCF
1,601
+4% +5%March 31, 2014 June 30, 2014
9.1
Cash Flow Net Debt DevelopmentCash Flow in € million, Net Debt in € billion
• Q2 2014 Investor Conference Call • Marijn Dekkers
Q2 2014 – HealthCare: Continued Dynamic Growth
Page 7*before special items
Sales Earnings
Pharma+5% (+10%)
ConsumerHealth
-4% (+1%)36%
HealthCare €4,845m; +1% (+6%)
2,9601,885
Price+1%
Volume+5%
Fx-6%
Portfolio+1%
In € million, ∆% yoy, () = Fx & portf. adjusted
Q2‘13 Q2‘14 Q2‘13 Q2‘14
1,328 1,355 +2%
987 991 0%
Adj.EBITDA*
Adj.EBIT*
• Q2 2014 Investor Conference Call • Marijn Dekkers
() = Fx effect in € million
(-120)
Q2 2014 – Pharma: Launch Products Drive Growth
Page 8*before special items
Sales Earnings
Launch products
Pharmaceuticals €2,960m; +5% (+10%)
702
In € million, ∆% yoy, () = Fx & portf. adjusted
Q2‘13 Q2‘14 Q2‘13 Q2‘14
921 927 +1%
685
Adj.EBITDA*
Adj.EBIT*
668 -2%
• Q2 2014 Investor Conference Call • Marijn Dekkers
() = Fx effect in € million
(-100)
Q2 2014 – Consumer Health: Strong Consumer Care and Animal Health Business
Page 9*before special items
Sales Earnings
Medical Care-9% (-5%)
ConsumerCare
-2% (+4%)
36%
Consumer Health €1,885m; -4% (+1%)
595
932
In € million, ∆% yoy, () = Fx & portf. adjusted
Q2‘13 Q2‘14 Q2‘13 Q2‘14
407428 +5%
302+7%323
Adj.EBITDA*
Adj.EBIT*
• Q2 2014 Investor Conference Call • Marijn Dekkers
Animal Health-1% (+5%)
358
() = Fx effect in € million
(-20)
Sales Earnings
Q2 2014 – CropScience: Strong Performance in North / Latin America
Page 10
Crop Protection+3% (+10%)
Environmental Science+2% (+8%)
Seeds+7% (+16%)
In € million, ∆% yoy, () = Fx & portf. adjusted
CropScience €2,470m; +3% (+11%)
Price+3%
Volume+8%
Fx-7%
Portfolio0%
2,010
Q2‘13 Q2‘14 Q2‘13 Q2‘14
624 615 -1%514
470 -9%
Adj.EBITDA*
Adj.EBIT*
197263
• Q2 2014 Investor Conference Call • Marijn Dekkers*before special items
() = Fx effect in € million
(-40)
Sales Earnings
Q2 2014 – MaterialScience: Volumes Driven by Increased Demand
Page 11**CAS: Coatings, Adhesives, Specialties *** IO: Industrial Operations
CAS**-2% (+4%)
In € million, ∆% yoy, () = Fx & portf. adjusted
*before special items
MaterialScience €2,864m; 0% (+4%)
Price-2%
Volume+6%
Fx-4%
Portfolio0%
1,532694
IO***-10% (-9%)
Q2‘13 Q2‘14 Q2‘13 Q2‘14
Adj.EBITDA*
Adj.EBIT*
274 270 -2%
112126
483
155
• Q2 2014 Investor Conference Call • Marijn Dekkers
Polyurethanes-1% (+3%)
Polycarbonates+5% (+8%)
+13%
() = Fx effect in € million
(-10)
Q2 2014 –Full-Year Group Guidance Maintained
Page 12
20132014E
(Avg. Fx rates Q4’13)2014E
(Spot Fx rates as of June 30, 2014 for 2H’14)
Sales €40.2bn~5% to
~€41-42bn(neg. FX effect approx. -2%)
~6% to~€41bn
(neg. FX effect approx. -4%)
adj. EBITDA €8.4bnlow- to mid-single-digit % increase
(neg. FX effect approx. -5%)
low- to mid-single-digit % increase
(neg. FX effect approx. -6%)
core EPS €5.61mid-single-digit %
increase(neg. FX effect approx. -6%)
mid-single-digit % increase
(neg. FX effect approx. -9%)
Sales ∆ Fx and portfolio adjusted, EBITDA before special items
Outlook depends on specific planning assumptions as detailed in the Annual Report• Q2 2014 Investor Conference Call • Marijn Dekkers
Q2 2014Bayer Continues Positive Business Development
July 30, 2014 / Marijn Dekkers, CEO
• Q2 2014 Investor Conference Call • Marijn Dekkers Page 13