Spring Investor Conference 2003

Transcription

1 Spring Investor Conference 2003 Rolf Classon, Bayer HealthCare 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. Page 2

2 Bayer HealthCare 2002 Disappointing, but also a Year of Transition and New Beginning Operational Performance Erosion Baycol Withdrawal Latin America Crisis/Global Economic Downturn Anthrax Generated Cipro Wholesaler Inventory Structural and Process Changes BHC Established Pharma Downsizing Biologicals Compliance Building for the future New Product Growth First Portfolio Adjustments Cost Base Reduced Page A Foundation for the New Bayer HealthCare Sale of Household Product Business Focus on OTC Core Brands Acquisition of Visible Genetics Inc. Strengthening Nucleic Acid Diagnostics breadth and growth Inlicensing of Kinzal mono/komb Complementing Pharma Cardiovascular franchise Stronger Research Focus on Key Therapeutic Areas Anti-infectives, Cardiovascular, Oncology Page 4

3 Bayer HealthCare 2002 Quarterly Performance million Sales 2,410 2,350 2,279 2,333 9,372 Key drivers Quarterly sales vs. prior year driven by Baycol withdrawal Cipro sales pattern, especially in Q4 YoY OPI (pre-except.) 244 YoY -6.1% -35.8% -15.3% % -4.9% % -21.0% % -12.3% % Except EBITDA (post except.) Q1 Q2 Q3 Q4 FY Quarterly Earnings performance: BP/DS turnaround Cost management Q4 driven by adverse product mix and write offs/one time cost Overall, 2002 sales decline significantly offset by turnarounds and the reduction of our break even point Page 5 Adjusted Cost Structure supports lower break even point in Q1 Q2 Q3 Q4 Marketing, R&D, Others Page 6

4 Bayer HealthCare Top 10 Products BHC Top 10 Product Net Sales Performance 2002 vs Kogenate 400 M 60% Avelox 280 M 55% Advia Centaur 340 M 31% Ascensia Elite 5% 515 M Products Gamimune (IGIV) Glucobay -3% -8% 333 M 287 M Advantage -10% 189 M Bayer Aspirin -14% 589 M Adalat -18% 800 M Ciprobay -28% 1,411 M -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% Absolute Values are Actual Net Sales 2002 Page 7 The New Bayer HealthCare Bayer HealthCare focus on driving active portfolio management and improvement of operational performance 8 strategic business entities currently organized in 5 autonomous divisions Streamlined BHC service and administration platform facilitates portfolio changes Page 8

5 4,400 Bayer HealthCare Portfolio Growth* 4-6% 7-9% 8-10% EBITDA * Average Growth p/a Mill. Pharma Plasma 1,700 Livestock Professional- Testing 2,900 Kogenate Self- Testing Companion OTC Performance Enhancement Stable Growth These targets are based on current assumptions. Due to various known and unknown risks and uncertainties, actual future results might differ substantially from these targets. The company assumes no liability whatsoever to update these forward looking statements. We also refer to the general disclaimer at the beginning of the presentation. Al numbers MIO Sales in 2002 Excluding HH Page 9 Growth and Performance Our Mid-Term Targets 17 % CFRoI 20 % EBITDA Key Drivers are: Operational performance improvements Growth of existing businesses New products Portfolio enhancement These targets are based on current assumptions. Due to various known and unknown risks and uncertainties, actual future results might differ substantially from these targets. The company assumes no liability whatsoever to update these forward looking statements. We also refer to the general disclaimer at the beginning of the presentation. Page 10

6 Mill. EBITDA Margin 10% 9,372 Bayer HealthCare Mid Term targets % 10,500 2,100 Sales EBITDA Sales EBITDA 2002 Page 11 Mid Term-Target These targets are based on current assumptions. Due to various known and unknown risks and uncertainties, actual future results might differ substantially from these targets. The company assumes no liability whatsoever to update these forward looking statements. We also refer to the general disclaimer at the beginning of the presentation. Mill. Bayer HealthCare Mid Term Targets 2,100 EBITDA 973 EBITDA -Cipro -Adalat -Others +Avelox +Levitra +Kogenate +Plasma +Advia +Ascensia +OTC PH-Restructuring Performance Enhancement Business Growth 800 M Performance Improvement 550 M Base Business Base Business 750 M 2002 Mid Term-Target These targets are based on current assumptions. Due to various known and unknown risks and uncertainties, actual future results might differ substantially from these targets. The company assumes no liability whatsoever to update these forward looking statements. We also refer to the general disclaimer at the beginning of the presentation. Page 12

7 Bayer HealthCare Commitment Bayer HealthCare has everything in place to reach these targets Page 13 Bayer HealthCare Performance Programs supporting Earnings growth Mio p.a Pharma- Restructuring BHC- Performance Enhancement Others Total* *Expected savings p/a These targets are based on current assumptions. Due to various known and unknown risks and uncertainties, actual future results might differ substantially from these targets. The company assumes no liability whatsoever to update these forward looking statements. We also refer to the general disclaimer at the beginning of the presentation. Page 14

8 Bayer HealthCare New Product Launches 2003 Expect > 700 Mill. sales from new product launches in 2003 with peak sales potential of 3.8 BN Pharma New Product launches ( 300 Mill.) Levitra Launch (20 countries in 9 month) Avelox in additional countries Kinzal Mono/Komb in some European countries Cipro XR Biologicals New Product launches (> 150 Mill.) IGIV-C (Gamunex) Diagnostics New Product launches (> 140 Mill.) Ascensia program launch Infectious Disease Tests Advia System Animal Health New Product launches (approx. 80 Mill.) Advantix Consumer Care New Product launches (approx. 60 Mill.) One a Day Weight Smart Page Pharma-Pipeline (As of January 2003) expected launch Project Indication Status >2005 Avelox i.v. (Bacterial Inf.) Launched Cipro XR (Bacterial Inf.) Launched Levitra (Erectile Dysf.) Launched/Filed Raf Kinase Inh. (Cancer) Phase II Repinotan (Stroke) Phase II Taxane analogue (Cancer) Phase II Factor Xa Inh. (CV) Phase II Page 16

9 Levitra, our next potential Blockbuster Opportunity: > 1 Billion Approved in EU, March 7, 2003 Launches starting this week US, Japan approval expected 2nd Half 2003 Within 9 Months Levitra will launch in over 90% of the ED Market 1st half nd half 2003 EMEA Approval Germany Finland Spain Norway Iceland Italy Switzerland Canada United Kingdom Austria Sweden Denmark Portugal Brazil Japan US Netherlands France Belgium Greece Mexico Page 17 Cipro XR Opportunity: 300 Million Cipro XR uuti launched January 03 Initial stocking demand of $35 Million Medicaid formulary acceptance of 98% of states Page 18

10 Bayer HealthCare - Summary Bayer HealthCare has significant well performing assets in several attractive markets Significant performance improvement in Pharma and Biological Products Topline growth midterm of 6 % p/a Prepared for portfolio adjustment Page 19 Spring Investor Conference 2003 Rolf Classon, Bayer HealthCare