Forward Looking Statements. Dr. Jochen Wulff Chief Executive Officer Bayer CropScience

Transcription

1 Dr. Jochen Wulff Chief Executive Officer Bayer Crop Forward Looking Statements This presentation contains forward-looking statements based on current assumptions and forecasts made by Bayer Crop AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the Bayer Crop AG or our parent company, Bayer AG, and the estimates given here. These factors include those discussed in Bayer AG's public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including Bayer AG's Form 20-F). Neither Bayer AG nor Bayer Crop AG assumes any liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

2 Solid Base for Success External Sales 2002* 5.9 billion Market Rank # 1 in Crop Protection Employees 20,000 Growth Target 2% above Market Global Operations in 120 Countries Profitability Target 29% EBITDA Margin in 2006 R&D Investment 700 Million * Pro forma excluding divested products 3 Business Groups for Specific Market Needs Crop Protection Crop Protection Insecticides Fungicides Herbicides Seed Treatment Professional Consumer Nunza Crop Improvement

3 3 Business Groups for Specific Market Needs Crop Protection Crop Protection Stable Slight Growth Consistent Growth Strong Growth 3 Business Segments Crop Protection The Backbone of our Business Crop Protection Contributing 85% to total Business: Market Dynamics Stable Slight Growth Key Figures 2002* External Sales*: 5.0 bn Market Share: ~ 20 % Market Position: # 1 * Pro forma excluding divested products

4 Market Leader in Crop Protection Solutions Business Segment Strategy Herbicides: Profitable Growth through Introduction of new Technology Products in Corn and Cereals Insecticides: Strengthen Leadership Position through Introduction of new Chemistry Fungicides: Enhance Position through new Technology and Mixture Strategy from Best-in-Class Portfolio Seed Treatment: Consolidate Leadership Position through new Insecticidal and Fungicidal Products New Active Ingredients Boost Future Growth Goal: 2-3 new Compounds per Year Methoxyfenozide Spirodiclofen Fluoxastrobin Spiromesifen Ketoenole #3 Mesosulfuron Clothianidin Prothioconazole Picobenzamid Herbicides plus safener Foramsulfuron Ethiprole Herbicides Insecticides Fungicides

5 Future Growth from New Products Projected Sales > 800 Mio. Insecticides Herbicides Fungicides Business Segments A Growth Segment Crop Protection Market Dynamics Consistent Growth Key Figures 2002* External Sales*: 0.7 bn Market Share: ~ 24 % Market Position: # 1 * Pro forma excluding divested products

6 Market Leader in the Non Agricultural Business Business Segment Strategy Capitalize on the Backward Integration with Crop Protection Grow Bayer Advanced Lawn & Garden Business in the US through Partnership Expand user and environmental-friendly Product Range Maintain Top Position in Professional Markets Emerging Player in Plant Biotechnology Nunza Crop Protection Crop Improvement External Sales 2002*: 240 Mio. Market Dynamics * Pro forma Strong Growth

7 Emerging Player in Plant Biotechnology Plant Biotechnology is future Growth Business Expand current Seed and Liberty Link Business Develop enhanced Vegetable and Field Crops with Herbicide Tolerance, Disease and Insect Resistance, higher Yields and improved Quality Introduce "Plants as Factories", enabling novel Plant-based Specialties for Industrial and Consumer Applications Establish a recognized Market Position Emerging Player in Plant Biotechnology Achieving a Strong Position in Cotton Seeds Based on conventional Variety with excellent Profile of Yield and Quality Herbicide and Bollworm Resistance 11% U.S. Market Share 2% 5% Continued R&D for additional Features e.g. Resistance to further Pests and improved / novel Cotton Properties

8 Bayer Crop - Quarterly Performance Sales 1,435 1,661 1,567 1,125 4,353 (in Million) 3.5% Fx and portfolio adjusted sales growth in Q3 % YOY % +91.8% % -14.3% +33.4% Business in Europe remained tough EBIT NAFTA business improved % YOY Special items (net) % Q4'02* % Q1'03* * adjusted Q2' % EBITDA Q3'03 3/4'03 NEA slightly up YOY Latin America strict channel management delayed business into Q4 EBIT improved YOY 3/4'03 EBITDA margin of 21% in line with planning Bayer Crop YTD Sept. Performance 2003 (in Million) External Sales EBITDA + 33 % % pro-forma** % EBITDA- 9.2 % 21.1 % Margin YTD September 2002* YTD September 2003 YTD September 2002* YTD September 2003 * Actual 2002 includes former ACS business after 06/01/02 ** pro-forma: Forex and Portfolio adjusted

9 Bayer Crop 3rd Quarter Performance 2003 External Sales EBITDA YTD September 2002* YTD September % +3.5 % pro-forma** -7 % 51 EBITDA- 4.2 % 4.5 % Margin YTD September 2002* YTD September 2003 * Actual 2002 includes former ACS business after 06/01/02 ** pro-forma: Forex and Portfolio adjusted Europe (in Million) Difficult market situation due to dry conditions; BCS business below last year due to elimination of sales from divested products NAFTA Business on track and up vs. Q3 2002; Received important registrations for Poncho and Calypso NEA Slight increase vs. Q due to strong insecticide and herbicide business; Strong year with Basta Cono Sur Stabilization of conditions in Brazil & Argentina; Asian rust in soybeans is key growth determining factor; Received registration for Stratego and Sphere in soybean International Bayer Crop business 20% above last year; Growth impulses from new products Mesosulfuron and Iodosulfuron Decrease YOY due to heavy impact of divestitures BCS business 35% above last year; Strong cotton and canola activities in NAFTA with lead brands FiberMax and InVigor A Leading Role in the Global Market Race A Successful future Market Leader starting from a strong Basis... Leader in conventional Crop Protection Leader in Emerging Player in Rich Development Pipeline Clear Goals & Aspirations... to reach our ambitious Growth and Profitability Targets!

10 Your Partner for Growth