Investor Conference Call

Transcription

1 Investor Conference Call FY/Q Results February 25, 2016 / Marijn Dekkers, CEO Page 1 Q4/FY 2015 Investor Conference Call Marijn Dekkers Disclaimer 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 situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer s public reports which are available on the Bayer website at The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Page 2 Q4/FY 2015 Investor Conference Call Marijn Dekkers

2 2015 A Transformational Year 2015 saw higher sales (+3% cpa.) and strong growth of adjusted EBITDA (+18%) and Core EPS (+16%); sales improvement driven by Pharma (+10%), Consumer Health (+5%) and (+2%) Strong top-line performance in Q4: Organic sales in Pharma +10%, Consumer Health +7%, +5%; bottom-line performance mixed as higher R&D and marketing investments as well as a challenging Ag environment held back profit growth; adjusted EBITDA +4%; core EPS -9%, previous year benefited from tax-gain and fully included Covestro Major strategic progress: IPO of Covestro, disposal of Diabetes Care, new organizational set-up Dividend proposal of 2.50, up 11% yoy, 37% payout of Core EPS Financial outlook 2016 projects further growth and higher earnings Page 3 Q4/FY 2015 Investor Conference Call Marijn Dekkers cpa = Fx & portfolio adj. Q Mixed Performance in million % currency & portfolio adj. EBIT in million EBITDA before special items in million Core EPS cont. op. in 10,792 11,319 1,829 1, Q4 14 Q4 15 Q4 14 Q4 15 Q4 14 Q4 15 Q4 14 Q % +65% +4% -9% Page 4 Q4/FY 2015 Investor Conference Call Marijn Dekkers

3 Q Divisional Breakdown in million; % yoy, Fx & portfolio adj. EBITDA before special items, in million; % yoy Pharma +10% 2,240 Consumer Health +7% 1,829 1,609 1,903 +4% 3, % 2,774 3, % +5% 2,439 Group 11,319m; +2% Covestro -11% , % +18% Page 5 Q4/FY 2015 Investor Conference Call Marijn Dekkers FY 2015 Targets More Than Achieved % yoy, Fx & portfolio adj., EBITDA before special items, continuing operations 2014 Actual 2015 Guidance (original) 2015 Actual 2015 vs bn low-single-digit % to ~ 46bn 46.3bn +3% adj. EBITDA 8.7bn low- to mid-teens % 10.3bn +18% core EPS (continuing) 5.89 low-teens % % Page 6 Q4/FY 2015 Investor Conference Call Marijn Dekkers

4 FY 2015 Launch Products Continued to Drive Performance at Pharma in million; % yoy, Fx & portfolio adj. Product in million; % yoy, Fx adj., Established products +4% (nominal) Launch products +42% (fx-adj.) +34% 2,252 9,514 4, % 1, % % % 181 Pharma 13,745m; +10% Xarelto Eylea Stivarga Page 7 Q4/FY 2015 Investor Conference Call Marijn Dekkers FY 2015 Consumer Care Strong Finish to a Successful Year in billion; % yoy, Fx & portfolio adj. Product Fx adj %* +5% % +12% +17% 2014 Pro-forma 2015 Q4 14 Q4 15 Page 8 Q4/FY 2015 Investor Conference Call Marijn Dekkers * incl. Aspirin Cardio

5 FY 2015 Resilient in Challenging Market Environment in million; % yoy, Fx & portfolio adj. % yoy, Fx adj. Environmental Science +4% Herbicides Seeds % +9% 2,830 1,277 +8% -2% -0.5% Seed Growth -11% 934 Fungicides +10% 2,911 10,367m; +2% 1,596 Insecticides -14% 3,123 Europe 2,689 North America +1% 1,531 Asia/ Pacific 3,024 LatAm/Africa/ Middle East Page 9 Q4/FY 2015 Investor Conference Call Marijn Dekkers FY 2015 Emerging Markets - Strong, Double- Digit Growth at Pharma and Consumer Care, % yoy, Fx adj. in billion; % yoy, Fx & portfolio adj., Industrialized countries +6% Emerging Markets¹ +6% +12% ~4.5 +5% ~4.8 63% 37% 33% +14% 47% ~1.9 32% Group total 46.3bn Pharma Consumer Care % EM share of total divisional sales Page 10 Q4/FY 2015 Investor Conference Call Marijn Dekkers ¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, New Zealand, Africa and Middle East incl. Turkey, Eastern Europe

6 FY 2016 Life Science Guidance yoy Fx and portfolio adj., EBITDA before special items e* 34.3bn Mid-single digit % ~ 35bn Adj. EBITDA 8.6bn Mid-single digit % Page 11 Q4/FY 2015 Investor Conference Call Marijn Dekkers *Assuming end Q Fx rates (USD 1.09) Outlook depends on specific planning assumptions as detailed in the Annual Report FY 2016 Group Guidance Including Covestro - Further and Earnings Growth yoy Fx and portfolio adj., EBITDA before special items e* 46.3bn Low-single digit % > 47bn adj. EBITDA 10.3bn Mid-single digit % core EPS (continuing) 6.83 Mid-single digit % Page 12 Q4/FY 2015 Investor Conference Call Marijn Dekkers *Assuming end Q Fx rates (USD 1.09) Outlook depends on specific planning assumptions as detailed in the Annual Report

7 FY 2016 R&D and CapEx Budgets R&D 2016e: 4.5bn CapEx (PPE) 2016e: 2.5bn Pharma Pharma 58% 25% 26% 30% 29% 6% Animal Health 3% 6% Covestro Recon. 2% Consumer Health Consumer Health 9% Recon. 12% 21% Animal Health 2% Covestro Page 13 Q4/FY 2015 Investor Conference Call Marijn Dekkers FY 2016 Guidance by Segment Guidance Adj. EBITDA Guidance* Pharma Mid-single-digit % Launch product sales: > 5bn Mid- to high-single-digit % (expected margin improvement) Consumer Health Mid-single-digit % Mid-single-digit % Low-single-digit % Low-single-digit % Animal Health Low- to-mid-single-digit % Low- to-mid-single-digit % Page 14 Q4/FY 2015 Investor Conference Call Marijn Dekkers *Assuming end Q Fx rates (USD 1.09) Fx & portfolio Adj., EBITDA before special items Outlook depends on specific planning assumptions as detailed in the Annual Report

8 Investor Conference Call FY/Q Results February 25, 2016 / Marijn Dekkers, CEO Page 15 Q4/FY 2015 Investor Conference Call Marijn Dekkers