Investor Conference Call Q Results

Transcription

1 Science For A Better Life Investor Conference Call Q Results Werner Wenning, CEO April Q Investor Conference Call Werner Wenning Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup 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. Q Investor Conference Call Werner Wenning Page 2

2 CropScience and Pharmaceuticals continue on a path of growth Slump in business at MaterialScience leaves a distinct mark Downturn at MaterialScience seems to be bottoming out, first signs of modest recovery are appearing Outlook increasingly demanding, though still achievable if there is a tangible recovery at MaterialScience Q Investor Conference Call Werner Wenning Page 3 Q Economic Crisis With Clear Impact Key Figures EBITDA by Subgroup Sales 7,895 EBITDA* 1,695 EBIT* 1,017 Core EPS 0.91 CropScience MaterialScience -7% Δ% - 8% - 22% ² - 32% -37% 43% 63% Δ% Adj. ** -10% 1% Reconciliation HealthCare * Before special items ** Currency & portfolio adjusted Q Investor Conference Call Werner Wenning Page 4

3 HealthCare Full Year Outlook Remains Intact Sales Earnings Consumer Health 0% (-4%) Pharma +5% (+3%) EBITDA 1,050 1,061 +1% EBIT 1, % % 2, % % % HealthCare 3,843m; +3% (0%) ( ) Currency & portfolio adjusted Q Investor Conference Call Werner Wenning Page 5 CropScience Successful Start Into 2009 Season Sales Earnings Bio Science +16% (+20%) Environmental Science 222-1% (-3%) 164 Crop Protection +7% (+7%) EBITDA % % EBIT % 1, % % % CropScience 2,120m; +7% (+7%) ( ) Currency & portfolio adjusted Q Investor Conference Call Werner Wenning Page 6

4 MaterialScience Unprecedented Drop in Demand Sales Earnings CAS* -37% (-41%) Industrial Operations -10% (-12%) Polyurethanes -35% (-39%) EBITDA 407 EBIT 281 Polycarbonates -39% (-42%) MaterialScience 1,636m; -35% (-38%) * Coatings, Adhesives and Specialties ( ) Currency & portfolio adjusted Q Investor Conference Call Werner Wenning Page 7 At MaterialScience Sales Seem To Be Bottoming Out Sales in million 2008 / 2009 Order Inflow** Jan Week 2-5 Apr Week Automotive 18%* -50% -40% 666 Electro/ Electronics 15%* -35% -20% Construction Furniture/ Wood 16%* 17%* -20% -25% -50% -30% Chemicals 9%* -60% -30% Others 25%* -40% -25% Oct Nov Dec Jan Feb Mar * % of total MaterialScience turnover in FY 2008 ** 4 week average vs. prior year Q Investor Conference Call Werner Wenning Page 8

5 Cash Flow and Net Debt Development Cash Flow Net Debt Development In million In billion GCF NCF cont. Investments ofcf , Δ % y-o-y -27% +31% +1% +68% Q4 08 Q Investor Conference Call Werner Wenning Page 9 Restructuring Actions Lower Costs And Improve Operating Free Cash Flow Running savings / efficiency projects will be executed as planned MaterialScience 2009 savings target raised to 200m Bayer will decide on further actions during the 2nd quarter CapEx (PPE) will be further reduced from 1.5bn to 1.4bn Working Capital projects are fully underway and expected to deliver a 1bn improvement over 2008 (at constant currencies and prices) On target for net debt reduction towards 10bn Q Investor Conference Call Werner Wenning Page 10

6 2009 Outlook Group Subgroups Aim of limiting the decline in Group underlying EBITDA to -5% increasingly demanding, though still achievable if there is a tangible recovery in the MaterialScience business CapEx now approx. 1.4bn R&D spending about 2.9bn Net debt reduction towards 10bn HealthCare - confirmed Sales growth above market and improvement of underlying EBITDA margin towards 28% CropScience - confirmed Continued growth, underlying EBITDA margin in the range of 25% MaterialScience - updated Q2: Sales and underlying EBITDA above Q1`09 Full year: Severe drop in sales and positive underlying EBITDA Q Investor Conference Call Werner Wenning Page 11 Science For A Better Life Q Investor Conference Call Werner Wenning