Bayer Investor Presentation Roadshow Frankfurt
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Bayer Investor Presentation Roadshow Frankfurt Bayer Investor Presentation Roadshow Frankfurt Presentation Transcript

  • Roadshow FrankfurtInvestor PresentationDr. Marijn DekkersCEO2011, November 4
  • DisclaimerThis presentation may contain forward-looking statements based on currentassumptions and forecasts made by Bayer Group or subgroup management.Various known and unknown risks, uncertainties and other factors could lead tomaterial 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 areavailable on the Bayer website at www.bayer.com.The company assumes no liability whatsoever to update these forward-lookingstatements or to conform them to future events or developments.
  • Das Bild k ann zurzeit nicht angezeigt werden. 3rd quarter 2011 Group Outlook confirmed Page 1 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011 View slide
  • 3rd 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 View slide
  • 3rd Quarter 2011 –Successful Development Continued Q3‘11 ∆% Highlights of Financial Results € million € million Sales 8,670 +1 (+5)  All subgroups contributed to sales EBITDA growth - reported 1,731 +41  Continuing momentum in emerging - adjusted 1,805 +8 markets EBIT - reported 1,099 +95  Adj. EBITDA raised on lower costs - adjusted 1,174 +17 at HealthCare and higher volumes Net income 642 +125 at CropScience. MaterialScience lower due to higher raw material and Net cash flow 1,577 +1 energy costs Free operating cash flow 1,223 +5 EPS  Reported EBIT impacted by net - reported 0.78€ +123 special charges of €75m (prev. year - core 1.12€ +18 €436m) ( ) = Fx & portfolio adjustedPage 3 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • 3rd Quarter 2011 –Cash Flow And Net Debt Development Q3 2011 Cash Flow Net Debt DevelopmentIn € million In € billion -0.4 GCF NCF Invest- oFCF cont. ments 7.4 7.0 1,327 1,577 354 1,223 ∆% y-o-y +50 +1 -10 +5 Q2´11 Q3´11Page 4 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • HealthCare –Emerging Markets Driving Growth Q3’11 Sales Earningsin € million, ∆% yoy, () = Fx & portf. adjusted Adj. Adj. Pharma EBITDA EBIT Consumer Health 36% -3% (0%) 1,226 +9% 0% (+4%) 1,122 1,537 2,663 909 +16% 785 739 853 +15% 470 600 +28% 383 373 -3% 315 309 -2% HealthCare €4,200m; -2% (+2%) Q3‘10 Q3‘11 Q3‘10 Q3‘11 Price Volume Fx Portfolio 0.6% 1.0% -3.5% 0.2%Page 5 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • CropScience –Strong Volume Growth At Crop Protection Q3’11 Sales Earningsin € million, ∆% yoy, () = Fx & portf. adjusted Adj. Adj. Crop Protection / EBITDA EBIT Environmental Science 36% BioScience -9% (-3%) +4% (+11%) 165 +47% 114 1,265 112 470 600 46 · -18 CropScience €1,379m; +3% (+9%) Q3‘10 Q3‘11 Q3‘10 Q3‘11 Price Volume Fx Portfolio -1.9% 11.3% -5.9% -0.7%Page 6 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • MaterialScience –Sales Driven By Higher Selling Prices Q3’11 Sales Earningsin € million, ∆% yoy, () = Fx & portf. adjusted Adj. Adj. EBITDA EBITPolycarbonates Polyurethanes +3% (+7%) 36% +4% (+7%) 408 749 1,371 348 -15% 259 196 -24% CAS* 4750% (+3%) 173 IO** +21% (+24%) MaterialScience €2,768m; +4% (+7%) Q3‘10 Q3‘11 Q3‘10 Q3‘11 Price Volume Fx Portfolio *CAS: Coatings, Adhesives, Specialties 7.1% 0.3% -3.7% 0.2% ** IO: Industrial OperationsPage 7 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • Full Year 2011 –Group Outlook ConfirmedSales ∆ Fx and portfolio adjusted, EBITDA pre-special items 2011E 2011E 2010 ∆ Original Actual1 Sales 4-6% 5-7% to (Fx & portf. €35.1bn +8% adjusted) €35-36bn €36-37bn adj. Improve €7.1bn +10% > €7.5bn EBITDA toward €7.5bn Core EPS €4.19 +15% ~10% ∽15% 1 As published with Q3 stockholder’s newsletter Outlook depends on specific planning assumptionsPage 8 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011 as detailed in the Annual/ Quarterly Report
  • Fiscal 2011 –Guidance By Subgroup Updated: Low-single digit (prev.: low- to mid-single digit) increase of sales.HealthCare 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.: Pharma 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). Consumer Unchanged: Health Mid-single digit growth of sales and adj. EBITDA. Updated: High-single-digit percentage higher sales and growth of adj.CropScience 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 toMaterialScience 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). Outlook depends on specific planning assumptionsPage 9 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011 as detailed in the Annual/ Quarterly Report
  • Building a World-Class Innovation CompanyPage 10 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • Building A World-Class InnovationCompany Portfolio Growth Productivity Build on leading industry Invest in innovation Decomplex structures position in all 3 capabilities and processes subgroups Maximize value of new Implement two-year Enhance competitive product pipeline strength group restructuring plan position Realize emerging market opportunity Target is to deliver mid-single digit organic sales growth in 2011 and to invest €15bn in growth during 2011 - 2013Page 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 Consumer Health €6.0bn, 20% OTC pharmaceuticals, blood glucose meters and 50% veterinary medicines, global #2-4 €6.8bn CropScience Agrochemicals and seeds & traits, global #2 in agrochemicals 30% €10.2bn MaterialScience Polyurethanes and polycarbonates, global #1/2 Sales 2010: €35.1bn Break-down excluding reconciliationPage 12 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • New Product Pipeline StrengthPage 13 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • Promising Late-Stage Pharma Pipeline What it does Status Cardiology 1st indication launched, filed; Xarelto inhibits blood clot formation phase III lowers blood pressure in the Riociguat lung phase III inhibits enzymes important for launched, additional indications Nexavar tumor growth in phase II/III Oncology inhibits enzymes important for CORRECT trial (phase IIII) in Regorafenib tumor growth CRC stopped early on success targeted treatment of bone ALSYMPCA trial (phase III) Alpharadin metastases in prostate cancer stopped early on success Diseases inhibits formation of new blood Eye VEGF Trap-Eye vessels 1st indication filed; phase IIIPage 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 DVT: deep vein thrombosis VTE: venous thromboembolismPage 15 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • 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 degeneration1 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 RegeneronPage 16 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • Alpharadin – New Opportunity to TreatBone 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 HRPC: symptomatic hormone-refractory prostate cancerPage 17 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • 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 therapiesPage 18 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • CropScience –Innovation Leadership R&D spending in € million Best-in-class R&D pipeline >850  23 new agrochemical active ingredients 722 launched since 2000, generated sales of €2bn 664 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 BioSciencePage 19 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • MaterialScience –World-Class Applications Research Bayseal ® Baytherm® Creates a seamless air Combines high mechanical barrier system working like a strength with high insulating building envelope capacity and low weight Makrolon® DurFlex® Forming lightweight exterior Improving noise reduction car body parts from and economics of rail track polycarbonate operations Bayblend® FR Bayfol Reflex ® A new safety concept for car Actuators out of polymers batteries to make housings give tactile feedback precisely flame retardant adjusted to requirements Makrofol®ID Baycusan® Film for ID cards providing Solvent-free polyurethane scratch resistance and based polymers for cosmetic protecting against counterfeit applicationsPage 20 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • Opportunity Emerging MarketsPage 21 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • 9 Months 2011 –Emerging Markets Leading The Growth 9M’2011 Group sales by region Emerging Economies +9% USA Emerging ~3,800 +4% Economies¹ 20% 36% +11% +10% 19% 36% ~2,900 +14% ~1,700 +13% 34% 11% ~1,300 Western Europe Others² +5% +5% Group €27,337m; +7% Emerging Latin Eastern Africa & Asia³ America Europe Middle East In € million, ∆% yoy Fx adjusted 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 ZealandPage 22 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • All BRIC-Countries in Our MostImportant Country Portfolio Sales in € bn ∆% yoy Fx adjusted Sales by country full year 20107.0 +0% +7% 3.0 +30% 2.5 2.0 +6% 1.5 +10% -5% +6% 1.0 0% +5% +1% +5%0.5 +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 InternationalHealthCare Companies in China Sales in € million; ∆% y-o-y Fx adjusted Strong growth HealthCare 9M’2011  Driven by Pharmaceuticals (+27% yoy) €713m +24% y-o-y (Fx-adj.)*  1,000 sales representatives to be added through 2011 Significant investment commitment  Approx. 5,300 employees (2010)  €100m over 5 years to set-up a global R&D center in China Top products growth in 9M‘2011*  Beijing manufacturing site expansion Aspirin +48% (~€45m through 2015) Adalat +30%  Partnership with Tsinghua University Avelox +24% (joint drug discovery, student support) Glucobay +23% Ultravist +14% * People‘s Republic of ChinaPage 24 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • €1bn New Investment Planat MaterialScience in China China’s importance further growing Commitment to growth in China China already is the world’s largest PCS  €2.1bn investment program in integrated market polymer site in Shanghai, China until 2012 China is set to become the world’s largest PUR  New investment of approx. €1bn in Shanghai market by 2015 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 = PolyurethanesPage 25 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • CropScience in Brazil – Gained Share inOne 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  Risk management systems in place to limit the potential impact of reduced credit availability; established barter business CropScience sales (in €m) CAGR 847 +19% 676 724 421 493 2006 2007 2008 2009 2010Page 26 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • More Innovation Less AdministrationPage 27 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • €800m Restructuring Program Underway Contribution by Subgroup Savings Initiative  Savings and efficiency initiative at Holding & Admin. HealthCare HealthCare, CropScience and corporate level ~12%  Annual cost savings of €800m starting 2013, reinvestment of ~50% ~34% ~54%  One-time-charges of around €1bn by end of 2012  Plans include reductions of 4,500 people  2,500 new hires in growth and CropScience innovation, particularly in emerging marketsPage 28 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • Reporting Events and AGM Date Event Publication China Conference 2011, November 16-18, 2011 Shanghai Tuesday, Investor Conference Call 2011 Annual Report February 28, 2012 Thursday, 1st Quarter 2012 Results Investor Conference Call April 26, 2012 Stockholders’ Newsletter Friday, Annual General Meeting April 27, 2012 Tuesday, 2nd Quarter 2012 Results Investor Conference Call July 31, 2012 Stockholders’ Newsletter Tuesday, 3rd Quarter 2012 Results Investor Conference Call October 30, 2012 Stockholders’ NewsletterPage 29 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011
  • Investor Relations ContactsDr. Alexander RosarHead of Investor RelationsPhone: +49-214-30-81013E-mail: alexander.rosar@bayer.comDr. Jürgen Beunink Ute MenkePhone: +49-214-30-65742 Phone: +49-214-30-33021E-mail: juergen.beunink@bayer.com E-mail: ute.menke@bayer.comPeter Dahlhoff Judith NestmannPhone: +49-214-30-33022 Phone: +49-214-30-66836E-mail: peter.dahlhoff@bayer.com E-mail: judith.nestmann@bayer.comFabian Klingen Dr. Olaf WeberPhone: +49-214-30-35426 Phone: +49-214-30-33567E-mail: fabian.klingen@bayer.com E-mail: olaf.weber@bayer.comPage 30 • Investor Presentation • Roadshow Frankfurt • Marijn Dekkers, CEO • November 4, 2011