Investor Conference Call FY/Q4 2014 Results February 26, 2015 / Marijn Dekkers, CEO 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 www.bayer.com. 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 2014 Investor Conference Call Marijn Dekkers
2014 Strong Business Development and Focus on Life Sciences Delivered strong organic growth with record earnings; all subgroups contributed Q4 product innovations and emerging markets continued to drive performance Portfolio transformation into a pure Life Science Company underway Integration of acquired businesses on track Dividend proposal of 2.25, up 7% yoy, 37% payout of Core EPS Financial outlook 2015 projects further growth and higher earnings Page 3 Q4/FY 2014 Investor Conference Call Marijn Dekkers Q4 2014 Solid Finish to a Successful Year % currency & portfolio adj. EBIT EBITDA Before special items Core EPS in 9,888 11,039 1,769 1,846 655 561 1.10 1.19 +7% -14% +4% +8% Page 4 Q4/FY 2014 Investor Conference Call Marijn Dekkers
Q4 2014 Divisional Break-Down % currency & portfolio adj. +5% Pharma +10% EBITDA Before special items 1,609 1,769 2,948 3,271 822 EBITDA 1,846 939 +4% +14% 3,490 515 487-5% +8% 2,195 2,327 Group 11,039m; +7% Consumer Health +4% 319 369 1,844 248 217 2013 2014 +16% -13% Page 5 Q4/FY 2014 Investor Conference Call Marijn Dekkers FY 2014 All Targets Achieved Fx & portf. adjusted, EBITDA before special items 2014 Guidance 2014 Actual 2014 Actual vs. 2013 ~5% to ~ 41-42bn 42.2bn +7% adj. EBITDA mid-single-digit % 8.8bn +5% core EPS mid-to-high-single-digit % 6.02 +7% Page 6 Q4/FY 2014 Investor Conference Call Marijn Dekkers
FY 2014 Recently Launched Products Continued to Drive Performance at Pharma % currency & portfolio adj. Product % currency adj. Established products -2% +82% 1,679 +133% 9,144 2,908 759 Recently launched +95% +17% 224 +287% 157 nm 89 Pharma 12,052m; +11% Xarelto Eylea Stivarga Page 7 Q4/FY 2014 Investor Conference Call Marijn Dekkers Consumer Care Brands and Emerging Market Focus Countries Drive Growth 5.6bn 3.9bn +5%** +10% +18% 2013 2014 pro-forma* China Brazil Russia +28% +26% +26% % Fx adj. yoy Page 8 FY/Q4 2014 Investor Conference Call Marijn Dekkers * including acquired businesses ** including Aspirin Cardio recognized at Pharma
FY 2014 Commercial Execution, New Products, and Seeds Drive Growth At In million, % yoy currency & portfolio adj. New CP Product * Seeds +20% Environmental Science +7% 1,104 678 Crop Protection +11% 7,712 in bn 1.5 1.1 +23% 1.9 2012 2013 2014 Seed 820 +20% 1,104 974 9,494m; +11% 2012 2013 2014 Page 9 Q4/FY 2014 Investor Conference Call Marijn Dekkers * Launched since 2006; nominal growth FY 2015 Group Guidance Further and Earnings Growth Fx and portfolio adjusted, EBITDA before special items 2014 2015e* adj. EBITDA 42.2bn 8.8bn Low-single digit % ~ 46bn (positive FX effect approx. +3%) Low-to-mid-teens % (positive FX effect approx. +2%) core EPS 6.02 Low-teens % (positive FX effect approx. +3%) Page 10 Q4/FY 2014 Investor Conference Call Marijn Dekkers *Assuming Fx rates of 12/31/2014 (USD 1.21) Outlook depends on specific planning assumptions as detailed in the Annual Report
FY 2015 R&D and CapEx Budgets R&D 2015e: > 4.0bn (+10%) CapEx (PPE) 2015e: ~ 2.3bn HealthCare ~ 2.6n thereof Pharma ~ 2.2bn ~ 0.2bn 5% ~ 1.1bn HealthCare ~ 0.8bn 35% ~ 0.5bn 23% 66% 27% 2% Reconciliation ~ 0.1bn Reconciliation ~ 0.3bn 11% 31% ~ 0.7bn Page 11 Q4/FY 2014 Investor Conference Call Marijn Dekkers FY 2015 Guidance by Subgroup Guidance cpa* Adj. EBITDA Guidance* HealthCare Mid-single-digit % (FX +3%) Mid-teens % Pharma Consumer Health Mid-to-high-single-digit % (FX +2%) Launch product sales: towards 4bn Mid-single-digit % (FX +3%) Low-teens % Slight margin improvement Mid-to-high twenties % Low-to-mid-single-digit % (FX +4%) Low-to-mid-single-digit % Lower sales, as volume growth is over compensated by lower selling prices Significant CFROI WACC Page 12 Q4/FY 2014 Investor Conference Call Marijn Dekkers *Assuming Fx rates of 12/31/14 (USD 1.21) Fx & portf. adjusted, EBITDA before special items Outlook depends on specific planning assumptions as detailed in the Annual Report