Bayer AG Q3 2011 Investor Conference Call
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Bayer AG, Q3 2011 Investor Conference Call

Bayer AG, Q3 2011 Investor Conference Call

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Bayer AG Q3 2011 Investor Conference Call Presentation Transcript

  • 1. Investor Conference CallQ3 2011 ResultsOctober 27, 2011 / Marijn Dekkers, CEO
  • 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 • Q3 2011 Investor Conference Call • Marijn Dekkers
  • 3. 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 progress: 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 Group financial outlook reiterated: On track for 5-7% organic sales growth, adj. EBITDA > €7.5bn and Core EPS growth of ~15%Page 3 • Q3 2011 Investor Conference Call • Marijn Dekkers
  • 4. 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 4 • Q3 2011 Investor Conference Call • Marijn Dekkers
  • 5. Emerging Markets Show ContinuingStrong Momentum 3rd Quarter 2011 Group sales by region Emerging Economies +7% USA Emerging ~1,300 +12% +3% Economies¹ 20% 36% +10% ~1,150 19% 38% +7% +11% 33% 10% 450 ~430Western Europe Others²+1% +4% Group €8,670m; +5% Emerging Latin Eastern Africa & Asia³ America Europe Middle EastIn € 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 5 • Q3 2011 Investor Conference Call • Marijn Dekkers
  • 6. 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 6 • Q3 2011 Investor Conference Call • Marijn Dekkers
  • 7. 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 7 • Q3 2011 Investor Conference Call • Marijn Dekkers
  • 8. 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 8 • Q3 2011 Investor Conference Call • Marijn Dekkers
  • 9. 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 9 • Q3 2011 Investor Conference Call • Marijn Dekkers
  • 10. Full Year 2011 –Group Outlook ConfirmedSales ∆ Fx and portfolio adjusted, EBITDA pre-special items 2011E 2011E 2010 ∆ Original Actual 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% Outlook depends on specific planning assumptions as detailed in the Annual/ Quarterly ReportPage 10 • Q3 2011 Investor Conference Call • Marijn Dekkers
  • 11. 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 to MaterialScience 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 11 • Q3 2011 Investor Conference Call • Marijn Dekkers as detailed in the Annual/ Quarterly Report
  • 12. Investor Conference CallQ3 2011 ResultsOctober 27, 2011 / Marijn Dekkers, CEO