Spring Investor Conference Financial Performance 2003

Transcription

1 Spring Investor Conference Financial Performance 2003 Klaus Kühn, CFO Safe Harbor This presentation contains forward-looking statements based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material 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 our public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F). The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

2 Financial Highlights 2003 Net special items underlying Non-operating result Pre-tax income (loss) After-tax income (loss) Net income (loss) Earnings per share ( ) Q4 7,121 (2,753) (2,774) 21 (103) (232) (2,985) (1,955) (1,952) (2.67) % yoy ,567 (2,585) 1,382 3,532 (791) (1,994) (1,349) (1,361) 3, (1.86) % yoy Reconciliation of Basis (197) Hedging gains 2) (net) New definition of special items 1) Reported 2002 underlying cont. Adjusted 2002 underlying cont. 1) Mainly gains from BCS product disposals 2) In 2003 reallocated from financial result to

3 2003 Hampered by High Special Charges + 1,382 (1,927) Total Special items (2,585) 2003 before special items Impairment losses, valuation (508) adjustments Restructuring expenses, other asset write-downs (619) Other special items Portfolio changes 2003 Hampered by High Special Charges + 1, before special items Polymers ( 1,134) Chemicals (476) HealthCare (317) Impairment losses, valuation (508) adjustments Restructuring expenses, other asset write-downs Impairment losses and valuation adjustments Polymers: Plastics/Rubber: (463) Summe Polyurethanes/Coatings/Fibers: Sondereinflüsse (671) (619) Other special items Portfolio changes

4 2003 Hampered by High Special Charges + 1, before special items Polymers ( 1,134) Chemicals (476) HealthCare (317) Impairment losses, valuation (508) adjustments Restructuring expenses, other asset write-downs Impairment losses and valuation adjustments Chemicals: Fine Chemicals: (286) Textile Chemicals Summe Paper Chemicals Sondereinflüsse (190) Inorganic Pigments (619) Other special items Portfolio changes 2003 Hampered by High Special Charges + 1, before special items Polymers ( 1,134) Chemicals (476) HealthCare (317) Impairment losses, valuation (508) adjustments Restructuring expenses, other asset write-downs Impairment losses and valuation adjustments HealthCare: Summe Plasma Business: Sondereinflüsse (317) (619) Other special items Portfolio changes

5 2003 Hampered by High Special Charges + 1,382 (1,927) Restructuring and other asset writedowns: Restructuring CropScience: Summe (102) Restructuring Polymers: Sondereinflüsse (135) Closure Kyoto: (119) Write-down SAP System: (100) Others: (52) 2003 before special items Impairment losses, valuation (508) adjustments Restructuring expenses, other asset write-downs (619) Other special items Portfolio changes 2003 Hampered by High Special Charges + 1,382 (1,927) Summe Other special items: Sondereinflüsse Accounting measures Baycol: (300) Senior part-time working: (209) Others: (110) 2003 before special items Impairment losses, valuation (508) adjustments Restructuring expenses, other asset write-downs (619) Other special items Portfolio changes

6 2003 Hampered by High Special Charges + 1,382 (1,927) Total Special items (2,585) 2003 before special items Impairment losses, valuation (508) adjustments Restructuring expenses, other asset write-downs (619) Other special items Portfolio changes Financial Highlights in Q4 Net special items underlying Non-operating result Pre-tax income (loss) After-tax income (loss) Net income (loss) Earnings per share ( ) 7,428 (340) (281) (59) 761 (300) (640) (418) (412) 829 1,679 (0.56) 7,121 (2,753) (2,774) 21 (103) (232) (2,985) (1,955) (1,952) (2.67) yoy ,413 2, ,345-1,537-1,

7 Components of Q4 Trend Q4'02 Q4'03 % yoy + Acquisitions / Divestitures - Currencies -Prices + Volumes 7,428 (265) (525) (74) 557 7, CropScience (net) Household Ins., CC Polymer Latex, PO Organic Pigm., CH Walothen, CH Others (155) (42) (42) (9) (10) (7) Financial Highlights in Q4 Net special items underlying Non-operating result Pre-tax income (loss) After-tax income (loss) Net income (loss) Earnings per share ( ) 7,428 (340) (281) (59) 761 (300) (640) (418) (412) 829 1,679 (0.56) 7,121 (2,753) (2,774) 21 (103) (232) (2,985) (1,955) (1,952) (2.67) yoy ,413 2, ,345-1,537-1,

8 HealthCare Pharma / Biological Products in LC 1,227 1, (256) (434) (378) (810) Special Items (364) (785) Underlying (14) (25) (222) (298) 238 (203) HealthCare Consumer Care / Diagnostics in LC Special items 239 (47) Underlying

9 HealthCare Animal Health in LC Special Items (11) 20 Underlying CropScience in LC 1,435 1, Crop Protection 1,256 1, Insecticides Fungicides Herbicides Seed Treatment Others (Transitional ACS) (40) 5 Environmental Science BioScience

10 CropScience (55) (18) Special items Underlying (125) Polymers Plastics / Rubber in LC 1,259 1, (25) (50) (625) Special items (35) 577 Underlying (15) (48)

11 Polymers PUR / Coatings / Fibers in LC 1,292 1, (145) (687) Special items (194) (737) Underlying Chemicals in LC (1) 7 (552) Special Items 13 (528) Underlying (6) (24)

12 Non-Operating Result % Non-operating result (654) (791) Income (exp.) from affiliated companies - net 223 (93) Interest expense - net (449) (353) Interest portion of provisions (296) (281) Exchange losses - net (5) (31) Miscellaneous - net (127) (33) Income (loss) before income-taxes 956 (1,994) Taxes 2003 Income taxes* Germany Other countries Effective tax rate (%) Other taxes (45) 152 (11.2) (221) (32.3) (303) * including deferred taxes

13 Balance Sheet Structure 2003 billion 37.4 (10%) 37.4 (10%) Property, Plant, Equipment 9.9 (-20%) 12.2 (-20%) Stockholders equity Intangibles Investments 6.5 (-27%) 1.8 (-19%) 8.9 (+6%) Provisions Trade a/c receiv. + inventories 11.0 (-8%) 4.7 (-1%) Remaining liabilities Other current assets 6.7 (+34%) 9.4 (-7%) Financial obligations Excluding minority interests, deferred taxes and deferred charges/income Free Cash Flow 2003 FY 2002 FY ,085 3,244 +/- Changes in working capital = 850 1, ,373 4, ,293 - Capital expenditures (638) (469) (2,239) (1,653) = Free operating cash flow 1, ,219 1,640 - Interest, dividends (81) (98) (964) (1,081) = Free cash flow , /- Acquisitions / divestments 1, (4,759) 1,830 = Free cash flow after acquis./divest. 1, (3,504) 2,389 Changes due to cash payments - Derivatives, currencies, other (1,985) (597) (696) (282) 3,504 (1,180) (2,389) (520) Net debt (balance sheet) (2,582) (978) 2,324 (2,909)

14 Dividend 2003 Earnings per share Cash flow per share