FY / Q4 2011 Investor Conference Call Presentation Charts

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Presentation Charts for FY / Q4 2011 Investor Conference Call

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FY / Q4 2011 Investor Conference Call Presentation Charts

  1. 1. Investor Conference CallFY/Q4 2011 ResultsFebruary 28, 2012 / Marijn Dekkers, CEO
  2. 2. 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.Page 2 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  3. 3. Full Year 2011 –Record Sales And EBIT Very good year overall, Group targets – that were raised after Q1 – achieved, proposed DPS of €1.65 Mixed business performance in Q4 – HealthCare and CropScience in line, MaterialScience below expectations Excellent innovation pipeline progress: 4 potential blockbuster products currently launching or expected to be launched near-term at pharma, crop protection pipeline with €2bn combined peak-sales potential (2011-2015) Continued Emerging Markets growth: 9% organic business expansion Productivity largely improved: measures with annualized savings of €543 million implemented Confident for 2012: Expect higher sales and earningsPage 3 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  4. 4. 4th Quarter 2011 –Mixed Business Performance Q4‘10 Q4‘11 ∆% Highlights of Financial Results € million € million  Top-line driven by ConsumerHealth and Sales 9,012 9,191 +2 (+2) CropScience EBITDA  Emerging Markets sales up 5% - reported 1,510 1,415 -6 - adjusted 1,689 1,541 -9  Improvement of reported EBIT due to EBIT lower special charges - reported 51 629 •  Adj. EBITDA declined due to a sharp - adjusted 1,005 844 -16 drop at MaterialScience Net income -145 397 • NCF 1,941 1,152 -41  Net cash flow impacted by payments in connection with LL Rice (€484m) oFCF 1,417 427 -70 EPS - reported -0.18 0.48 • - core 0.95 0.97 +2 ( ) = Fx & portfolio adjustedPage 4 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  5. 5. 4th Quarter 2011 – HealthCare and CropScienceIn Line, MaterialScience Below Expectations Sales adj. EBITDA ∆% Q4‘10 Q4‘11 Q4’10 Q4‘11 ∆% (adj.)HealthCare 4,468 4,595 +3 (+2) 1,138 1,180 +4Pharma 2,648 2,680 +1 (+1) 771 758 -2Consumer Health 1,820 1,915 +5 (+5) 367 422 +15CropScience 1,653 1,676 +1 (+3) 270 273 +1MaterialScience 2,584 2,596 0 (0) 297 106 -64In € million, ( ) = Fx & portfolio adjustedPage 5 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  6. 6. Full Year 2011 Targets AchievedPage 6 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  7. 7. Full Year 2011 –All Group Targets Achieved Sales ∆ Fx and portfolio adjusted, EBITDA pre-special items 2011 Outlook 2011 2011 Comments original actual ∆ 4-6% to  Raised to 5-7% or €36-37bn Sales €36.5bn +6% €35-36bn in Q1 increase adj. towards €7.6bn +7%  Raised to >€7.5bn in Q1 EBITDA €7.5bn Increase by Core EPS €4.83 +15%  Raised to ~15% in Q1 ~10% Net Debt reduce €7.0bn -€0.9bn  Record GCFPage 7 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  8. 8. Full Year 2011 –Subgroup Performance vs. Targets 2011 Outlook 2011in € million adj. ∆ Comments original actualHealthCare  Targets achieved or exceededSales low/mid single-digit 17,169 +2%  Top-line driven by Consumer increase HealthAdj. EBITDA* small improvement 4,702 +7%  Pharma margin up 140 bpts.CropScience ≥ mid-single digitSales 7,255 +9% increase  Achieved or exceeded all targets grow at higher rateAdj. EBITDA* 1,654 +28% than salesMaterialScience  Sales growth above, bottom-line mid single-digit clearly below expectationsSales 10,832 +8% increase  Pressure from higher raw grow at higher rate material prices and deterioratingAdj. EBITDA* 1,171 -14% business environment than salesPage 8 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers *Adj. EBITDA = pre-exceptional items
  9. 9. Full Year 2011 Significant ProgressPage 9 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  10. 10. Pharma Pipeline –2011 – Significant Progress Achieved Project Indication Peak sales Status & Targets potential Xarelto Cardiology / > €2bn  SPAF: launched (US, EU, others) Anticoagulation  DVT treatment and sec. prevention: launched  DVT prev. ORS: launched in US  Sec. prev. ACS: filed VEGF Trap- Ophthalmology / ≥ €1bn  Filed for wet AMD in EU and Japan Eye Inhibition of blood  Phase III for DME and wet AMD (China) vessel growth initiated  Positive phase III data in CRVO Alpharadin Oncology / ≥ €1bn  CR prostate cancer: 44% improvement of OS Targeting of bone  Fast track designation by FDA metastases  Filing target: mid 2012 Regorafenib Oncology / ≥ €1bn  Metastatic colorectal cancer: 29% Oral multi-kinase improvement of OS inhibition  Fast track designation by FDA  Filing target: 1H 2012 SPAF: stroke prevention in atrial fibrillation; DVT: deep vein thrombosis; ORS: orthopedic surgery; ACS: acute coronary syndrome; AMD: age-related macular degeneration; DME: Diabetic macular edema CRVO: central retina vein occlusion; CR: castration refractory; OS: overall survivalPage 10 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  11. 11. €2bn Peak Sales Potential withCrop Protection Pipeline 2011-2015 Sales in €bn from launches 2011-2015E Launches 2011–2015E* ~ 2.0 Fungicide Seed Treatment Herbicide Fungicide Seed Treatment ~ 0.2 Sivanto Insecticide Peak sales 2011 potential Triafamone Herbicide * subject to regulatory approvalPage 11 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  12. 12. Emerging Markets –Sales Growth Well Above Global Average Full Year 2011 Group sales by region Emerging Economies +5% USA Emerging +3% Economies¹ ~5,100 +9% +12% 19% 36% ~4,300 +12% ~2,100 +9% 34% 11% ~1,800 Western Europe Others² +4% +4% Group €36,528m; +6% Emerging Latin Eastern Africa & Asia³ America Europe Middle East ¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, In € million, ∆% yoy Fx adjusted 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 12 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  13. 13. Emerging Markets –Realizing The Opportunity Fx & portfolio adjusted Examples 2011 sales development 2011  Hired add. ~1,000 sales reps in China  Relocated primary care headquarter to China HealthCare  Established 50/50 JV w. Zydus Cadila in India  In-licensed Tedizolid antibiotic from Trius for +10% several EM markets, incl. China  Opened new “seed treatment application CropScience center” in Brazil  Approval of LibertyLink soybean, Argentina +11%  Opened new world-scale TDI plant in China MaterialScience with innovative gas-phase phosgenation  Moved polycarbonates headquarters to China +7%Page 13 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  14. 14. Restructuring Program Fully On Track Contribution by Subgroup  Target: €800m annual cost savings by 2013  Reinvestment of ~50% Holding & HealthCare Admin. ~12%  One-time-charges of approx. €1bn of which €803m booked in 2010/11 ~54%  Plans include staff reductions of 4,500 €800m  2,500 new hires in growth and 34% innovation, particularly in emerging markets CropScience Measures with €543m annualized savings already implemented by end of 2011Page 14 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  15. 15. Full Year 2012 Financial OutlookPage 15 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  16. 16. Outlook 2012 –Planning AssumptionsGDP growth by regions  Global economic/political risksin % vs previous year remain high5  Outlook for economic growth 5.14 4.8 marked by uncertainty3 3.3  Positive signals for North America,2 2.6 in Europe we expect slower 1.7 expansion in 2012 than 20111 0.7  Asian emerging markets continue to drive growth  $/€ 1.40, 1% appreciation of Euro lowers sales by ~€76m and EBITDA by ~€23m  Crude oil: average $110/bblPage 16 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  17. 17. Outlook 2012 –Planning Assumptions Expected 2012 Global Market Development2011 Group sales 10 % OTC-pharmabreak-down in % Low- to mid-single digit growth 3 % Diabetes care low-single digit growth 27 % Rx-pharma Mid-single digit growth, driven by emerging markets 3 % Animal Health Moderate growth 20 % Agrochemicals/Seeds Positive development 15 % Others 5 % Furniture/wood 6 % Automotive Robust growth Ongoing recovery, small growth 6 % Construction 5 % Electro/electronic Ongoing recovery Robust growthPage 17 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  18. 18. Full Year 2012 Outlook Projects FurtherGrowth And Higher EarningsSales ∆ Fx and portfolio adjusted, EBITDA pre-special items 2011 ∆ vs. 2010 2012E Sales +~3% or €36.5bn +6% (Fx & portf. adjusted) ~€37bn* adj. EBITDA €7.6bn +7% Slightly improve Core EPS €4.83 +15% Slightly improve *Assuming Fx rate of $1.40 per € Outlook depends on specific planning assumptions as detailed in the Annual/ Quarterly ReportPage 18 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  19. 19. Full Year 2012 –Guidance By Subgroup Expect sales to increase by low- to mid-single-digit HealthCare percentage. Plan to slightly improve adj. EBITDA . Expect sales to remain stable or move slightly higher, and adj. Pharma EBITDA to approx. match prior year level. Consumer Anticipate mid-single-digit percentage growth of sales and Health adj. EBITDA. Plan to grow above market and to increase sales and adj. CropScience EBITDA by mid-single-digit percentages. Expect sales and adj. EBITDA to remain level with prior year. Should market develop more favorably than anticipated, we MaterialScience expect sales and earnings to increase accordingly. Q1’12: Expect sales to be roughly level with Q4’11 and adj. EBITDA to be well above Q4’11 but below Q1’11.Sales ∆ Fx and portfolio adjusted, EBITDA pre-special items Outlook depends on specific planning assumptionsPage 19 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers as detailed in the Annual/ Quarterly Report
  20. 20. Full Year 2012 –R&D And CapEx Budgets R&D 2012e: ~€3.0bn CapEx (PPE) 2012e: ~€1.5bn HealthCare MaterialScience HealthCare MaterialScience 2.0bn 0.2bn 0.5bn 0.5bn thereof Pharma 1.5bn 8% 8% 33% 34% CropScience 0.8bn 25% 24% 66% 67% 1% 13% 20% Reconciliation Reconciliation CropScience 0.05bn 0.2bn 0.3bnPage 20 • FY/Q4 2011 Investor Conference Call • Marijn Dekkers
  21. 21. Investor Conference CallFY/Q4 2011 ResultsFebruary 28, 2012 / Marijn Dekkers, CEO

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