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Bayer CropScience Annual Press Conference 2013
 

Bayer CropScience Annual Press Conference 2013

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The presentation was held by Bayer CropScience CEO Liam Condon at the company’s annual press conference in Monheim, Germany. Against the background of strong demand for its products, the company is ...

The presentation was held by Bayer CropScience CEO Liam Condon at the company’s annual press conference in Monheim, Germany. Against the background of strong demand for its products, the company is adding EUR 1 billion to its investment program, bringing total capital expenditures for the period 2013 to 2016 to approximately EUR 2.4 billion.

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    Bayer CropScience Annual Press Conference 2013 Bayer CropScience Annual Press Conference 2013 Presentation Transcript

    • Shaping the Future of Farming Liam Condon, CEO Bayer CropScience Monheim, Germany │September 5, 2013
    • WEATHER FLUCTUATIONS -322 kg rice per hectare Yields under pressure +1 C HECTARES OF FARMLAND PER CAPITA 1950 : 0.52 2010 : 0.20 2050 : 0.15 INSUFFICIENT STORAGE Up to 40% of fruit and vegetables lost in India Equivalent to the annual consumption in UK HUNGER 1 in 8 goes hungry today CHANGING CONSUMPTION PATTERNS Increasing demand for protein POPULATION GROWTH 9.6 billion people in 2050 7 billion people on the planet today GLOBAL FOOD PRODUCTION Need for a sustainable productivity increase By 2050 +70%
    • We need A New Revolution in Agriculture • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 3 A holistic approach where stakeholders in agriculture unite to achieve a more sustainable way of growing crops, at the quantities we need to help advance world food security. Extending partnerships …leveraging the potential of collaboration in modern, sustainable agriculture Enhancing human health …improving the nutritional value of certain crops and contributing to a healthy food supply Leading innovation …helping address the key challenges of modern agriculture through new solutions Enabling farmers big and small …providing them with tools, technology and training to thrive economically in the long-term Driving a sustainable intensification of agriculture …helping to raise both productivity and environmental compatibility
    • What drives us: “Bayer: Science For A Better Life” • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 4 Enhance Crop Protection Strengthen Customer Centricity Lead the Way in Innovation Expand Seeds Business Our 4-pillar-strategy perfectly supports our integrated approach to foster sustainable agriculture
    • • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 5 Weed Resistance can have devastating consequences for farmers Already affects almost 50% of the growers in the United States1 Enhance Crop Protection 1 2012 Stratus Agri-Marketing survey of U.S. farmers Palmer amaranth in a cotton field near Memphis, TN, USA 26 August 2013 The case of Weed Resistance
    • The history of Weed Resistance development in the U.S. from 1990 to 2012 • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 6 Enhance Crop Protection
    • • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 7 Weed Resistance needs a holistic approachEnhance Crop Protection Monitoring Diagnostics Outreach & Education Research & Development Molecular diagnostics Analytics diagnostics Greenhouse bioassays In-field investigation & detection Extensive expertise & knowledge base Global oversight & local know-how Breeding & trait development Resistance management New modes of actionMode of action rotation Crop rotation Cultivation methods
    • State-of-the-art integrated Glufosinate-ammonium plant Meet demand on North American market Planned start of operation: end of 2015 • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 8 To meet growing demand, we plan to invest in a new production plant in Mobile, Alabama, USAEnhance Crop Protection
    • • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 9 Frankfurt, Germany Dormagen, Germany Muttenz, Switzerland Vapi, India Knapsack & Frankfurt, Germany Mobile, Alabama, USA Kansas City, Kansas, USA Tlaxcala, Mexico We are lifting our supply chain capacity to a higher level Our plan to further expand supply capacities reflects strong demand for our products Selected capital expenditure projects Enhance Crop Protection
    • CAPEX* in m EUR 2006–2016 *Tangible assets excl. capital interest 2.4bn EUR in capital expenditures Revised CAPEX planning 2013 200 300 400 500 Published CAPEX planning 2012 +1bn EUR compared to CAPEX planning 2012 2.4bn EUR earmarked for capacity expansion program from 2013 to 2016 • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 10 Enhance Crop Protection
    • With our integrated crop solutions, we are focused on customer needsStrengthen Customer Centricity • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 11 • Integrated Pest Management (IPM) • Good Agricultural Practices (GAP) • Yield & Quality • Tradeability • Convenience BenefitsChallenges • Weed, pest & disease control • Resistance management Across the food value chain Sustainable intensification of agriculture Contribution to Food Security • On-field consulting • Training • Diagnostic tools • Canola • Cotton • Rice • Soybean • Wheat • Vegetables • Microbial fungicides • Microbial insecticides • Microbial nematicides • Herbicides • Fungicides • Insecticides • Seed treatment products • Higher yield • Higher quality • Convenience • Risk management GROWER DEMAND
    • • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 12 Integrated crop solutions in practice: Canola in CanadaStrengthen Customer Centricity
    • *Estimated and subject to regulatory approval ²Joint project with MS Tech• Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 13 Strong integrated pipeline with promising launches over the next four years*Lead the Way in Innovation Seed Varieties Numerous launches in vegetables & broad acre crops Disease Res. + Sub- merge. Tol. Hybrid Rice Bayer Wheat Seed Fungicide Biologics Herbicide Council Insecticide Sivanto LibertyLink + R. Ready Hybrid Canola Seed Varieties ~110 launches in vegetables & broad acre crops Fungicide Serenade Optimum Roundup Ready Hybrid Canola Bayer Oilseed Mustard Hybrids Seed Varieties Numerous launches in vegetables & broad acre crops Insect Resistant Hybrid Rice TwinLink + GlyTol Cotton Insecticide Verango / Velum Canola Yield Increase Seed Varieties Numerous launches in vegetables & broad acre crops Disease Res. + Salinity Tol. Hybrid Rice Insect + Disease Res. Hybrid Rice Insecticide Biologics Improved Canola Oil Profile Dual Herb. Tol. + Novel Ins. Res. Cotton GlyTol + HPPD Tolerant Soybeans² Crop Protection Seeds Life Cycle Management Cotton Canola Wheat Soybean Rice 2013 2014 2015 2016 Constant Life Cycle Management through new formulations and mixtures that also include Biologics Improved Canola Oil Profile LibertyLink + R. Ready Hybrid Canola Canola Yield Increase Roundup Ready Hybrid Canola
    • • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 14 Biological Crop Protection for mite controlLead the Way in Innovation Mites can significantly reduce yields and quality Leading to rejection of produce along the value chain and lower sales Two-spotted spider mite under scanning electron microscope (SEM), © Bayer CropScience* Subject to regulatory approval Microbial acaricide with new mode of action Season-long effectiveness: curative, eradicant, protective Registration expected in the U.S. in 2016*
    • • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 15 Protecting pollinators and improving honey bee healthLead the Way in Innovation Of the 100 crops providing 90% of the world’s food, 70 are pollinated by bees and other insects Research & development Product stewardship Bayer Bee Care Centers Stakeholder dialogue
    • • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 16 New approach to control soybean cyst nematodeLead the Way in Innovation *Source: Chen, S.; MacDonald, D.H., Kurle, J.E.; et al (2001): „The Soybean Cyst Nematode“; University of Minnesota, St. Paul, MN, USA. p.1. Soybean cyst nematodes can cause up to 30% crop losses Resulting in annual damage worth ~US$ 1.5bn in the U.S.* Soybean cyst nematode control in transgenic soybeans with microbial gene
    • 33.0 EUNorth America* South America** China 30.4 4.3 20.9 *USA and Canada | **Brazil, Argentina, Paraguay and Uruguay | Source: ACTI, GTIS, Oil World, OVID | © OVID Verband der ölsaatenverarbeitenden Industrie in Deutschland Expand Seed Business • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 17 Consumption of soybeans worldwide 2011/12 Overall 260 mil. tons | Source: FAPRI China USA Argentina Brazil EU India Other Soybean – a truly global crop and the world’s protein base Soy exports 2011 in million tons
    • 1 2 3 4 5 5 cornerstones of our soy strategy in Latin America 2013 Agropastoril soybean germplasm bank Cascaval, Paraná 2013 Wehrtec soybean seed company Cristalina, Goiás 2010 CVR plant breeding Rio Verde, Goiás 2011 Soytech soybean seed company Goiânia, Goiás Good quality germplasm Best in class breeding platform Proprietary & licensed trait platform Business model integrating Seeds and Crop Protection Out-licensing of our trait platform Acquisitions in Latin America broaden our portfolio in soyExpand Seed Business • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 17
    • Saskatoon, Canada: Spring Wheat Minnesota, USA: Spring Wheat Lincoln, USA: Winter Wheat Near Paris, France: Winter Wheat Gent, Belgium: Bayer CropScience Innovation Center Gatersleben, Germany: Winter Wheat Mironovka, Ukraine: Winter and Spring Wheat Horsham, Australia: Spring Wheat We are driving innovation in wheat seeds and traits in our seven breeding centers and through collaboration with leading institutions Wheat – the world’s staple crop • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 18 Expand Seed Business
    • We expect our strategy to further drive our growth towards 10bn EUR by 2015* Bayer CropScience GLOBAL SALES in bn EUR 2006–2015 5.8 6.4 6.5 6.8 5.7 8.4 7.3 Target: TOWARDS 9* Aspiration: TOWARDS 10* *Outlook depends on specific planning assumptions as detailed in the Annual Report, assumption of HY1 2013 fx-rates for 2013 target • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 19
    • What Shaping the Future of Farming means to us • Annual Press Conference 2013 • Liam Condon • September 5, 2013Page 20 Driving a New Revolution in Agriculture through innovation and sustainable farming solutions Supporting farmers around the world with integrated crop solutions Meeting food chain needs and consumer expectations Making a significant contribution to the healthy development of society