Q3 2012 Investor Conference Call Presentation

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Q3 2012 Investor Conference Call Presentation

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Q3 2012 Investor Conference Call Presentation

  1. 1. Investor Conference CallQ3 2012 ResultsOctober 30, 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 • Investor Handout • Q3 2012
  3. 3. 3rd Quarter 2012 –On Track for a Successful 2012 Upward trend at HealthCare and CropScience continued Reported earnings impacted by high special charges Innovation pipeline with significant progress Further strategic progress with the acquisitions of Schiff, Teva’s US Animal Health business and AgraQuest Financial Outlook 2012 reiterated: Core EPS expected to increase by about 10%Page 3 • Investor Handout • Q3 2012
  4. 4. 3rd Quarter 2012 –On Track for a Successful 2012Sales EBIT EBITDA Core EPSin € million adjusted*% currency & portfolio adj. in € million in € million in € 9,665 8,670 1,845 1,805 1.20 1.12 1,099 838 Q3’11 Q3’12 Q3’11 Q3’12 Q3’11 Q3’12 Q3’11 Q3’12 +5% -24% +2% +7% *before special items Page 4 • Investor Handout • Q3 2012
  5. 5. Regional Performance –Growth Led By USA and Emerging EconomiesIn € million, ∆% yoy Fx adjusted Q3’12 Group Sales by Region Emerging Economies Emerging +7% USA Economies¹ ~1,530 +9% +7% 21% +11% 39% ~1,330 +10% 30% Western 10% ~500 -1% Others² Europe +2% ~430 +1% Group €9,665m; +5% Emerging Latin Eastern Africa & Asia³ America Europe Middle East ¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, New Zealand, Africa and Middle East incl. Turkey, Eastern EuropePage 5 • Investor Handout • Q3 2012 ² Others = Japan, Australia, New Zealand, Canada ³ Emerging Asia = Asia w/o Japan, Australia, New Zealand
  6. 6. 3rd Quarter 2012 –Cash Flow and Net Debt DevelopmentCash Flow in € million, Net Debt in € billion Q3’12 Cash Flow Net Debt Development GCF NCF Invest- oFCF cont. ments 7.9 -€1,106m 6.8 1,023 1,989 486 1,503 ∆% y-o-y -23 +26 +37 +23 Q2´12 Q3´12Page 6 • Investor Handout • Q3 2012
  7. 7. HealthCare –Gained Further Growth MomentumIn € million, ∆% yoy, () = Fx & portf. adjusted Q3’12 Sales Earnings Consumer Adj. Adj. 36% Pharma Health EBITDA* EBIT* +13% (+6%) +12% (+5%) 1,985 2,734 1,297 +6% 1,226 972 +7% 827 +8% 909 768 549 613 +12% HealthCare €4,719m; +12% (+5%) 458 470 +3% 360 359 0% Price Volume Fx Portfolio +1% +4% +7% 0% Q3‘11 Q3‘12 Q3‘11 Q3‘12 *before special itemsPage 7 • Investor Handout • Q3 2012
  8. 8. Strengthening Consumer Health –Acquisition of Schiff Nutrition International, Inc. Schiff, headquartered in Utah, USA, is an NYSE listed company and projects fiscal year 2013 sales above $370m Product portfolio comprises nutrition supplements with well known brands The acquisition is a significant strengthening of strategic meaningful and strong growing sectors of the nutrition supplements market in the US Cardiovascular Joint Care Immune Support Digestive Support BHC-CC OTC Solutions SHF Nutrition Supplements Purchase price: $1.2bn, closing targeted before year-end Transaction values Schiff’s business at 17.8 times consensus fiscal year 2013 EBITDA Accretive by 3 Eurocents to 2013 core EPS, dilutive to reported EPS by 2 Eurocents in 2013, expected to be accretive thereafterPage 8 • Investor Handout • Q3 2012
  9. 9. CropScience –Growth Momentum ContinuedIn € million, ∆% yoy, () = Fx & portf. adjusted Q3’12 Sales Earnings Environmental Crop Protection Adj. Adj. Science +18% (+12%) EBITDA* EBIT* +14% (+9%) 130 97 1,414 189 +15% 165 68 +48% Seeds+49% (+39%) 46 CropScience €1,641m; +19% (+13%) Price Volume Fx Portfolio +1% +12% +7% -1% Q3‘11 Q3‘12 Q3‘11 Q3‘12 *before special itemsPage 9 • Investor Handout • Q3 2012
  10. 10. MaterialScience –Further Sales GrowthIn € million, ∆% yoy, () = Fx & portf. adjusted Q3’12 Sales Earnings Polycarbonates Polyurethanes Adj. Adj. -4% (-11%) +16% (+10%) EBITDA* EBIT* 720 1,572 348 333 -4% CAS** +4% (+3%) 512 196 177 -10% IO*** 188 +9% (+5%) MaterialScience €2,992m; +8% (+3%) Price Volume Fx Portfolio 0% +3% +6% -1% Q3‘11 Q3‘12 Q3‘11 Q3‘12 *before special itemsPage 10 • Investor Handout • Q3 2012 **CAS: Coatings, Adhesives, Specialties *** IO: Industrial Operations
  11. 11. Fiscal 2012 –Group Outlook ReiteratedSales ∆ Fx & portf. adjusted, EBITDA before special items ∆ vs. 2012E 2012E 2011 2010 Original Actual ~3% or 4-5% to Sales €36.5bn +6% ~€37bn €39-40bn* High single-digit Adj. EBITDA €7.6bn +7% Slightly improve % increase Core EPS €4.83 +15% Slightly improve ~10% *Assuming Fx rates end of Q3’2012Page 11 • Investor Handout • Q3 2012 Outlook depends on specific planning assumptions as detailed in the Annual/Quarterly Report
  12. 12. Fiscal 2012 –Guidance By Subgroup Sales to increase 3% to 4%. HealthCare Adj. EBITDA to grow by mid- to high-single-digit percentage. Sales to increase slightly. Pharma Adj. EBITDA to grow mid-single-digit percentage. Consumer Sales to increase mid-single-digit percentage. Health Adj. EBITDA to grow high-single-digit percentage. Sales to increase by ~10%. CropScience Adj. EBITDA to grow by ~20%. Small increase in sales versus prior year. Adj. EBITDA to remain level with prior year. MaterialScience Q4’12: Sales and adj. EBITDA significantly above weak Q4’11 Sales ∆ Fx & portf. adjusted, EBITDA before special itemsPage 12 • Investor Handout • Q3 2012 Outlook depends on specific planning assumptions as detailed in the Annual/Quarterly Report
  13. 13. Investor Conference CallQ3 2012 ResultsOctober 30, 2012 / Marijn Dekkers, CEO

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