Fueling our Strategyfor Sustainable SuccessCEO Sandra PetersonSeptember 2012, Monheim
Forward-Looking StatementsThis presentation may contain forward-looking statements based on currentassumptions and forecas...
We continue to operate in a challengingand opportunity-rich landscapePage 3 • Fueling our Strategy for Sustainable Success...
Farmers are at the center of our efforts to turnglobal challenges into opportunities                 Our farmer focus     ...
We continue to serve customers worldwidewith our expanding global footprintGlobal network of 34 manufacturing, 13 R&D and ...
In 2011, we launched a four-pillar strategyto pave the way for sustainable success1                                       ...
Our strategic focus is reaping rewards,as seen in our H1 sales and profitsH1 2012 Sales                                   ...
Following positive business developmentin H1, we raised our full year guidanceBusiness outlook 2012        Sales to advanc...
In the midterm, sales will be driven by above-market growth and an expansion in Seeds                                     ...
Looking ahead: We continue to seeopportunity-rich market dynamics                Environmental challenges…                ...
We’re leveraging the full potentialof these opportunities               To beat expectations for sustainable answers…     ...
Leading in Sustainable Crop Solutions:Sustainability in food production is a future mega trendCustomers expect safer and “...
With AgraQuest, we have all competenciesto lead in Sustainable Crop Solutions    Depending on specific market             ...
Investment of €5 bn in R&D from 2011-2016will fuel delivery of new global R&D strategy             Sustainability         ...
We are ensuring world-class Product Supplyby investing € 2bn from 2011 to 2016Optimizing supply chain model to increase fl...
Bayer CropScience summary                • We significantly raised guidance for 2012 (in July)                • We aspire ...
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BCS annual press conference 2012_sandra_peterson

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Bayer CropScience Annual Press Conference 2012. Sandra Peterson, Chief Executive Officer

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BCS annual press conference 2012_sandra_peterson

  1. 1. Fueling our Strategyfor Sustainable SuccessCEO Sandra PetersonSeptember 2012, Monheim
  2. 2. Forward-Looking StatementsThis 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.
  3. 3. We continue to operate in a challengingand opportunity-rich landscapePage 3 • Fueling our Strategy for Sustainable Success • September 2012
  4. 4. Farmers are at the center of our efforts to turnglobal challenges into opportunities Our farmer focus EMPOWERING farmers to become “agripreneurs” with tools & training ENABLING progress by investing in innovation and technology ENHANCING partnerships by collaborating from seed to shelfPage 4 • Fueling our Strategy for Sustainable Success • September 2012
  5. 5. We continue to serve customers worldwidewith our expanding global footprintGlobal network of 34 manufacturing, 13 R&D and 18 major seed processing sites Seeds HQ RTP* Global HQ (inc. Crop Protection) Belgium Monheim Denmark Canada Germany Netherlands Switzerland South Korea USA Spain France Turkey China Pakistan Japan Bangladesh Mexico Thailand Guatemala India Philippines Colombia Vietnam Costa Rica Singapore Indonesia Brazil Environmental Science HQ Manufacturing sites Lyon Australia Major R&D sites South Africa Major seed Argentina processing sites*Research Triangle Park Page 5 • Fueling our Strategy for Sustainable Success • September 2012
  6. 6. In 2011, we launched a four-pillar strategyto pave the way for sustainable success1 2 3 4Rejuvenate Reinvent customer- Rebalance and Extend Seedsthe core Crop centricity along refocus innovation footprint inProtection business value chain focused crops• Streamlining and • Driving commercial Striving for 50:50 • Strengthening enhancing our excellence in in R&D for Seeds/ position in Crop Protection marketing and sales Biologics and established crops portfolio Chemistry by 2016 • Customizing • Extending portfolio• Focusing on offerings and Innovating in e.g. soy, wheat, flexibility and developing convergence oilseeds efficiency differentiated between chemistry solutions and biologyPage 6 • Fueling our Strategy for Sustainable Success • September 2012
  7. 7. Our strategic focus is reaping rewards,as seen in our H1 sales and profitsH1 2012 Sales H1 2012 EBITDA before special itemsIn € million; Δ% yoy; ( ) Δ% yoy fxp* In € million; Δ% yoyBayer CropSciencetotal: 4,886 1,530+16% (+14%) 1,216 376Seeds** +25.8 %+21% (+18%) 723Crop Protection+17% (+14%) 3787 H1 2011 H1 2012EnvironmentalScience EBITDA margin before special items DA item+3% (+0%) 29.0% 31.3%*fxp = foreign exchange and portfolio adjusted **Formerly called BioScience Page 7 • Fueling our Strategy for Sustainable Success • September 2012
  8. 8. Following positive business developmentin H1, we raised our full year guidanceBusiness outlook 2012 Sales to advance by approximately 10% on a currency- and portfolio-adjusted basis EBITDA before special items to improve by approximately 20% ket Above-market growthPage 8 • Fueling our Strategy for Sustainable Success • September 2012
  9. 9. In the midterm, sales will be driven by above-market growth and an expansion in Seeds 7255 6830 Total sales in € million Portion of business in: Seeds ~20% Crop Protection/ 10% 11% ~13% Environmental Science 2010 2011 E.2012 E.2016Page 9 • Fueling our Strategy for Sustainable Success • September 2012
  10. 10. Looking ahead: We continue to seeopportunity-rich market dynamics Environmental challenges… calling for sustainable crop solutions Rapidly-advancing technology… demanding differentiated answers Increasing market volatility… requiring flexible and strategic adaptationPage 10 • Fueling our Strategy for Sustainable Success • September 2012
  11. 11. We’re leveraging the full potentialof these opportunities To beat expectations for sustainable answers… we’re aiming to lead the way in Sustainable Crop Solutions In response to demands for differentiation… we’re heavily investing in robust R&D technologies To thrive despite increasing market volatility… we’re building up world-class Product SupplyPage 11 • Fueling our Strategy for Sustainable Success • September 2012
  12. 12. Leading in Sustainable Crop Solutions:Sustainability in food production is a future mega trendCustomers expect safer and “sustainable” food Customers expect safer and “sustainable” foodGlobal retailers have more stringent residuereduction targets Global retailers have more stringent residue reduction targetsTougher regulations and registration of synthetic products;higher demand for biologics Tougher regulations and registration of synthetic products; higher demand for biologicsBiologics often effective in very small quantities Biologics often effective in very small quantitiesGreen Products market forecast to triple to triple The broader biologics market forecastto almost 4 bn bn USD by 2020 to almost 4 USD by 2020Page 12 • Fueling our Strategy for Sustainable Success • September 2012
  13. 13. With AgraQuest, we have all competenciesto lead in Sustainable Crop Solutions Depending on specific market Molecular Biology, Small conditions, individual solutions for Molecules and Biologics can customer needs can be made Molecular be efficient solution-providers for available through different Biology unmet customer needs - each technology platforms requiring a different expertise Customer Needs Disease control Weed control Pest control Synthetic Plant health Biologics ChemistryPage 13 • Fueling our Strategy for Sustainable Success • September 2012
  14. 14. Investment of €5 bn in R&D from 2011-2016will fuel delivery of new global R&D strategy Sustainability Plant Health Delivering sustainable Exploiting expertise in Seeds, crop solutions to beat Biologics and Small customer expectations Molecules to build a unique position in plant health World-class R&D portfolioRebalancing Innovation Collaboration Investing equally in Seeds / Expanding network of Biologics and Chemistry to collaborations to create integrated & leverage full potential effective global R&D of open innovation organizationPage 14 • Fueling our Strategy for Sustainable Success • September 2012
  15. 15. We are ensuring world-class Product Supplyby investing € 2bn from 2011 to 2016Optimizing supply chain model to increase flexibility and thrive despite volatility Building up capacity for top Crop Protection brands including: Expanding infrastructure for Accelerating our Capital Expenditures* celerating Expenditures Seeds business (breeding stations CAPEX (in € million) and seed production facilities) 400 300 Continuing to defend cost 200 leadership by focusing on 100 Operational Excellence 2011 2012 2013 2014 2015 2016Page 16 • Fueling our Strategy for Sustainable Success • September 2012 *Property, plant and equipment
  16. 16. Bayer CropScience summary • We significantly raised guidance for 2012 (in July) • We aspire to double the share of our Seeds business by 2016 • We are investing ~ €5 bn in R&D* • We are investing ~ €2 bn in CAPEX* • Our pipeline* has a combined peak sales potential of > €4 bn*2011-2016Page 17 • Fueling our Strategy for Sustainable Success • September 2012

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