Das Bild kann zurzeit nicht angezeigt werden. Das Bild kann zurzeit nicht angezeigt werden. Das Bild kann zurzeit nicht angezeigt werden. Roadshow Frankfurt Investor Presentation Dr. Marijn Dekkers CEO 2011, November 4
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 forwardlooking statements or to conform them to future events or developments.
Das Bild kann zurzeit nicht angezeigt werden. 3 rd quarter 2011 Group Outlook confirmed Page 1 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 3 rd Quarter 2011 Bayer Confirms Group Outlook Delivered growth and performance, adj. sales up 5%, adj. EBITDA up 8%, reported EPS +123%, Core EPS +18% Further strategic progress: Innovation pipeline: Xarelto: positive AdCom vote, positive CHMP opinion and successful ATLAS trial; Alpharadin: FDA fast track designation; Regorafenib: phase III mcrc stopped early on success Emerging markets: 10% organic growth Productivity: Group wide restructuring plans with 320 million annualised savings already implemented Full-year 2011 Group financial outlook reiterated: On track for 5-7% organic sales growth, adj. EBITDA > 7.5bn and Core EPS growth of ~15% Page 2 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
3 rd Quarter 2011 Successful Development Continued Q3 11 % million million Sales 8,670 +1 (+5) EBITDA - reported 1,731 +41 - adjusted 1,805 +8 EBIT - reported 1,099 +95 - adjusted 1,174 +17 Net income 642 +125 Net cash flow 1,577 +1 Free operating cash flow 1,223 +5 EPS - reported 0.78 +123 -core 1.12 +18 ( ) = Fx & portfolio adjusted Highlights of Financial Results All subgroups contributed to sales growth Continuing momentum in emerging markets Adj. EBITDA raised on lower costs at HealthCare and higher volumes at CropScience. MaterialScience lower due to higher raw material and energy costs Reported EBIT impacted by net special charges of 75m (prev. year 436m) Page 3 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 3 rd Quarter 2011 Cash Flow And Net Debt Development In million Q3 2011 Cash Flow Net Debt Development In billion GCF NCF cont. Investments ofcf 7.4-0.4 7.0 1,327 1,577 354 1,223 % y-o-y +50 +1-10 +5 Q2 11 Q3 11 Page 4 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
HealthCare Emerging Markets Driving Growth Consumer Health 0% (+4%) Q3 11 Sales in million, % yoy, () = Fx & portf. adjusted 1,537 36% 2,663 Pharma -3% (0%) 1,122 Adj. EBITDA 739 853 1,226 +9% Earnings +15% 785 Adj. EBIT 470 600 909 +16% +28% 383 373-3% 315 309-2% HealthCare 4,200m; -2% (+2%) Q3 10 Q3 11 Q3 10 Q3 11 Price 0.6% Volume 1.0% Fx -3.5% Portfolio 0.2% Page 5 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 CropScience Strong Volume Growth At Crop Protection Environmental Science -9% (-3%) Q3 11 Sales in million, % yoy, () = Fx & portf. adjusted 114 Crop Protection / 36% BioScience +4% (+11%) 1,265 Adj. EBITDA Earnings 165 +47% Adj. EBIT 112 470 600 46 Price -1.9% CropScience 1,379m; +3% (+9%) Volume 11.3% Fx -5.9% Portfolio -0.7% -18 Q3 10 Q3 11 Q3 10 Q3 11 Page 6 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
MaterialScience Sales Driven By Higher Selling Prices Q3 11 Sales in million, % yoy, () = Fx & portf. adjusted Polycarbonates +3% (+7%) CAS* 0% (+3%) IO** +21% (+24%) 475 749 173 Polyurethanes 36% +4% (+7%) 1,371 MaterialScience 2,768m; +4% (+7%) 408 Adj. EBITDA Earnings 348-15% 259 Adj. EBIT Q3 10 Q3 11 Q3 10 Q3 11 196-24% Price 7.1% Volume 0.3% Fx -3.7% Portfolio 0.2% *CAS: Coatings, Adhesives, Specialties ** IO: Industrial Operations Page 7 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 Full Year 2011 Group Outlook Confirmed Sales Fx and portfolio adjusted, EBITDA pre-special items 2010 2011E Original 2011E Actual 1 Sales (Fx & portf. adjusted) 35.1bn +8% 4-6% 35-36bn 5-7% to 36-37bn adj. EBITDA 7.1bn +10% Improve toward 7.5bn > 7.5bn Core EPS 4.19 +15% ~10% 15% Page 8 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 1 As published with Q3 stockholder s newsletter Outlook depends on specific planning assumptions as detailed in the Annual/ Quarterly Report
Fiscal 2011 Guidance By Subgroup HealthCare Pharma Consumer Health CropScience MaterialScience Updated: Low-single digit (prev.: low- to mid-single digit) increase of sales. Expect adjusted EBITDA to grow by a mid-single digit percentage to at least 4.6bn (prev.: small improvement). Updated: Expect virtually unchanged or only slightly higher sales (prev.: low- to mid-single digit increase). Plan to increase adj. EBITDA by about 5%, improving the adj. EBITDA margin to approx. 30% (prev.: raise adj. EBITDA margin). Unchanged: Mid-single digit growth of sales and adj. EBITDA. Updated: High-single-digit percentage higher sales and growth of adj. EBITDA by more than 20% (prev.: about 20%) compared to weak prior year. Updated: Higher Q4 11 sales but lower adj. EBITDA than in Q4 10 in view of continued increases in raw material and energy costs. Expect to raise full-year sales by high-single-digit, posting slightly lower adj. EBITDA in the region of 1.3bn (prev.: grow adj. EBITDA at a higher rate than sales). Page 9 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 Outlook depends on specific planning assumptions as detailed in the Annual/ Quarterly Report Building a World-Class Innovation Company Page 10 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
Building A World-Class Innovation Company Portfolio Growth Productivity Build on leading industry position in all 3 subgroups Enhance competitive position Invest in innovation capabilities Maximize value of new product pipeline strength Realize emerging market opportunity Decomplex structures and processes Implement two-year group restructuring plan Target is to deliver mid-single digit organic sales growth in 2011 and to invest 15bn in growth during 2011-2013 Page 11 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 Bayer A Leader in Its Markets 16.9bn HealthCare Pharmaceuticals 10.9bn, leading positions in key categories 50% 20% Consumer Health 6.0bn, OTC pharmaceuticals, blood glucose meters and veterinary medicines, global #2-4 30% 6.8bn 10.2bn CropScience Agrochemicals and seeds & traits, global #2 in agrochemicals MaterialScience Polyurethanes and polycarbonates, global #1/2 Sales 2010: 35.1bn Break-down excluding reconciliation Page 12 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
New Product Pipeline Strength Page 13 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 Promising Late-Stage Pharma Pipeline What it does Status Cardiology Xarelto Riociguat inhibits blood clot formation lowers blood pressure in the lung 1st indication launched, filed; phase III phase III Nexavar inhibits enzymes important for tumor growth launched, additional indications in phase II/III Oncology Regorafenib Alpharadin inhibits enzymes important for tumor growth targeted treatment of bone metastases in prostate cancer CORRECT trial (phase IIII) in CRC stopped early on success ALSYMPCA trial (phase III) stopped early on success Eye Diseases VEGF Trap-Eye inhibits formation of new blood vessels 1st indication filed; phase III Page 14 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
Xarelto Novel Direct Factor Xa Inhibitor Large global program involving over 75,000 patients Met primary efficacy endpoints in 9 phase III studies: RECORD 1-4, EINSTEIN DVT and EINSTEIN Extension; Rocket AF; ATLAS TIMI51; MAGELLAN Marketing & regulatory status: Launched in >85 countries for VTE prevention following total knee / hip replacement surgery Filed for stroke prevention in patients with atrial fibrillation (SPAF) in all major regions Positive FDA AdCom vote on approvability in SPAF European Committee (CHMP) recommends approval in SPAF and DVT treatment ATLAS TIMI51 phase III trial (ACS) met primary efficacy endpoint; data to be presented at AHA (Nov. 13, 2011); filing planned for end 2011 EINSTEIN PE phase III program ongoing data expected end 2011/early 2012 Page 15 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 DVT: deep vein thrombosis VTE: venous thromboembolism VEGF Trap-Eye Fusion Protein To Combat Eye Diseases In-licensed from Regeneron Bayer has exclusive marketing rights ex-us Met primary efficacy endpoint in 4 phase III studies (VIEW I & II, Copernicus & Galileo) Submitted for marketing approval to European and Japanese health authorities for wet age related macular degeneration 1 Filing for central retinal vein occlusion planned for 2012 Additional studies in diabetic macular edema and myopic choroidal neovascularization ongoing 1 US submission (February 2011) by Regeneron Page 16 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
Alpharadin New Opportunity to Treat Bone Metastases Alpha-pharmaceutical (based on 223Radium, delivering highly energetic, short ranging radiation) - in-licensed from Algeta Radium as natural bone seeker targeting bone metastases ALSYMPCA (phase III) in patients with bone metastases in prostate cancer (HRPC) stopped early - Alpharadin demonstrated 44% improvement in overall survival Filing targeted mid 2012 Fast track status granted by FDA Tumor cells Newly formed bone Bone metastases Radium-223 deposition Radium-223: highly localized tumor cell killing Page 17 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 HRPC: symptomatic hormone-refractory prostate cancer Regorafenib New Treatment Option in Cancer Oral multi-kinase inhibitor of angiogenic, stromal and oncogenic receptor tyrosine kinases Currently studied in late-stage clinical trials in colorectal and gastrointestinal stromal tumors (GIST) CORRECT phase III trial in metastatic colorectal cancer* (mcrc) stopped early on success (Oct 11) Study met its primary endpoint of significantly improving overall survival Full data expected to be presented at a scientific congress in Q1 12 Phase III program in GIST ongoing, expect results early 2012 FDA granted orphan drug (GIST) and Fast Track (GIST & mcrc) designation * for patients whose disease has progressed after approved standard therapies Page 18 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
CropScience Innovation Leadership R&D spending in million >850 722 664 Best-in-class R&D pipeline 23 new agrochemical active ingredients launched since 2000, generated sales of 2bn in 2009 Launched >45 AgChem formulations and >170 seed varieties since 2010 Planning to launch 4 new molecules between 2012 and 2015 Refocus R&D: BioScience investment significantly increased 2005 2010 2015e AgChem BioScience Page 19 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 MaterialScience World-Class Applications Research Bayseal Creates a seamless air barrier system working like a building envelope Baytherm Combines high mechanical strength with high insulating capacity and low weight DurFlex Improving noise reduction and economics of rail track operations Bayblend FR A new safety concept for car batteries to make housings flame retardant Makrolon Forming lightweight exterior car body parts from polycarbonate Bayfol Reflex Actuators out of polymers give tactile feedback precisely adjusted to requirements Makrofol ID Film for ID cards providing scratch resistance and protecting against counterfeit Baycusan Solvent-free polyurethane based polymers for cosmetic applications Page 20 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
Opportunity Emerging Markets Page 21 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 9 Months 2011 Emerging Markets Leading The Growth USA +4% 9M 2011 Group sales by region 20% 19% 36% 36% Emerging Economies¹ +11% Emerging Economies +9% ~3,800 +10% ~2,900 +14% ~1,700 +13% 34% 11% ~1,300 Western Europe +5% Others² +5% Group 27,337m; +7% Emerging Asia³ Latin America Eastern Europe Africa & Middle East In million, % yoy Fx adjusted Page 22 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 ¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, New Zealand, Africa and Middle East incl. Turkey, Eastern Europe ² Others = Japan, Australia, New Zealand, Canada ³ Emerging Asia = Asia w/o Japan, Australia, New Zealand
All BRIC-Countries in Our Most Important Country Portfolio Salesin bn 7.0 +0% % yoy Fx adjusted Sales by country full year 2010 3.0 2.5 +7% +30% 2.0 +6% 1.5 +10% -5% +6% 1.0 0.5 0% +5% +1% +5% +3% +23% +12% * Page 23 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 *Greater China includes PR China, Hongkong, Macau and Taiwan Bayer is One of The Leading International HealthCare Companies in China Sales in million; % y-o-y Fx adjusted HealthCare 9M 2011 713m +24% y-o-y (Fx-adj.)* Strong growth Driven by Pharmaceuticals (+27% yoy) 1,000 sales representatives to be added through 2011 Top products growth in 9M 2011* Aspirin Adalat Avelox Glucobay Ultravist +48% +30% +24% +23% +14% Significant investment commitment Approx. 5,300 employees (2010) 100m over 5 years to set-up a global R&D center in China Beijing manufacturing site expansion (~ 45m through 2015) Partnership with Tsinghua University (joint drug discovery, student support) * People s Republic of China Page 24 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
1bn New Investment Plan at MaterialScience in China China s importance further growing China already is the world s largest PCS market China is set to become the world s largest PUR market by 2015 Commitment to growth in China 2.1bn investment program in integrated polymer site in Shanghai, China until 2012 New investment of approx. 1bn in Shanghai by 2016 to Increase MDI capacity to 1,000kt/year More than double PCS capacity to 500kt/year Increase HDI capacity, new 50kt/year line planned Transfer of PCS Headquarters from Leverkusen to Shanghai Increasing downstream presence (investment of 110m by 2012) PCS = Polycarbonates PUR = Polyurethanes Page 25 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 CropScience in Brazil Gained Share in One of the World s Largest Ag Markets Brazil is the 2nd largest market for CropScience Bayer is one of the leading suppliers and growing strongly Bayer gained market share in each of the past 3 years CropScience sales (in m) Risk management systems in place to limit the potential impact of reduced credit availability; established barter business 421 493 676 724 847 CAGR +19% 2006 2007 2008 2009 2010 Page 26 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
More Innovation Less Administration Page 27 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 800m Restructuring Program Underway Contribution by Subgroup Savings Initiative Holding & Admin. ~12% ~34% CropScience HealthCare ~54% Savings and efficiency initiative at HealthCare, CropScience and corporate level Annual cost savings of 800m starting 2013, reinvestment of ~50% One-time-charges of around 1bn by end of 2012 Plans include reductions of 4,500 people 2,500 new hires in growth and innovation, particularly in emerging markets Page 28 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011
Reporting Events and AGM Date Event Publication November 16-18, 2011 Tuesday, February 28, 2012 Thursday, April 26, 2012 Friday, April 27, 2012 Tuesday, July 31, 2012 Tuesday, October 30, 2012 China Conference 2011, Shanghai Investor Conference Call Investor Conference Call Annual General Meeting Investor Conference Call Investor Conference Call 2011 Annual Report 1 st Quarter 2012 Results Stockholders Newsletter 2 nd Quarter 2012 Results Stockholders Newsletter 3 rd Quarter 2012 Results Stockholders Newsletter Page 29 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011 Investor Relations Contacts Dr. Alexander Rosar Head of Investor Relations Phone: +49-214-30-81013 E-mail: alexander.rosar@bayer.com Dr. Jürgen Beunink Phone: +49-214-30-65742 E-mail: juergen.beunink@bayer.com Peter Dahlhoff Phone: +49-214-30-33022 E-mail: peter.dahlhoff@bayer.com Fabian Klingen Phone: +49-214-30-35426 E-mail: fabian.klingen@bayer.com Ute Menke Phone: +49-214-30-33021 E-mail: ute.menke@bayer.com Judith Nestmann Phone: +49-214-30-66836 E-mail: judith.nestmann@bayer.com Dr. Olaf Weber Phone: +49-214-30-33567 E-mail: olaf.weber@bayer.com Page 30 Investor Presentation Roadshow Frankfurt Marijn Dekkers, CEO November 4, 2011