Financial News Conference

Transcription

1 Financial News Conference Leverkusen, February 22, 2017 Werner Baumann, CEO of Bayer AG

2 Bayer Again Very Successful Operationally and Strategically New record for operating performance Agreed acquisition of Monsanto intended to further strengthen Bayer as a Life Science company and create substantial additional value in the long term Further expansion of innovation network with outstanding partners

3 Group: New Record for Performance in % (+3.5%)* +12.8%* +10.2%* +7.3%* Main factors Large contribution from Life Science businesses Higher R&D expenses 4.4 billion for the Life Science areas Sales EBIT Clean EBITDA Core earnings per share ( ) *% 2015 ( ) Currency- and portfolio-adjusted Some prior-year figures restated

4 Pharmaceuticals: Gratifying Increases in Sales and Earnings +7.3% (+8.7%)* +13.8%* +1.8 ppts Main factors % 32.0% Substantial contribution from our key growth products Xarelto, Eylea, Xofigo, Stivarga and Adempas Sales expanded markedly in all regions Much higher R&D investments Sales margin *% 2015 ( ) Currency- and portfolio-adjusted Some prior-year figures restated

5 Consumer Health: Growth in Line with Competition -0.6% (+3.5%)* -3.1%* -0.6 ppts Main factors % 23.4% Gains in Latin America and Asia/Pacific Double-digit growth rates for Canesten and Elevit ; business with Claritin receded Higher cost of goods sold Negative currency effects Sales margin *% 2015 ( ) Currency- and portfolio-adjusted Some prior-year figures restated

6 Crop Science: Successful in a Difficult Market Environment -2.1% (+0.1%)* +0.6%* +0.6 ppts Main factors % 24.4% Decline in Latin America compensated by gains in other regions Gratifying gains at Seeds and Environmental Science Insecticides sales down sharply Higher R&D expenses Very positive currency effects Sales margin *% 2015 ( ) Currency- and portfolio-adjusted Some prior-year figures restated

7 Animal Health: Increase in Sales +2.2% (+4.8%)* +0.6%* -0.4 ppts Main factors % 22.9% Very strong growth with Seresto TM flea and tick collar Higher selling expenses Sales ( m) margin *% 2015 ( ) Currency- and portfolio-adjusted Some prior-year figures restated

8 Good Progress with the Agreed Acquisition of Monsanto The businesses are highly complementary both in terms of products and geographical focus We are making good progress in obtaining antitrust approvals and have already applied for clearance from some two-thirds of around 30 authorities We remain confident of closing the transaction before the end of 2017 We are making good progress with the financing and have successfully implemented the first equity measure

9 Innovation is our Core Competence Global network of R&D locations with more than 14,000 scientists R&D spending in the Life Sciences increased to 4.4 billion Networking with excellent partners to remain at the cutting edge of scientific development BlueRock Therapeutics aims to develop innovative therapies based on state-of-the-art stem cell technology Bayer Lifescience Center has mission to uncover and unlock scientific breakthroughs

10 Financial Targets 2017: Life Sciences and Bayer Group Life Sciences Bayer Group Group sales Mid-single-digit percentage increase* to approx. 37 billion Low- to mid-single-digit percentage increase* to more than 49 billion EBITDA before special items Mid- to high-single-digit percentage increase Mid-single-digit percentage increase Core earnings per share** - Mid-single-digit percentage increase * Currency- and portfolio-adjusted ** Reflects mandatory convertible notes issued in November 2016

11 We are optimistic for 2017 and beyond Future challenges in nutrition and health care can only be overcome on the basis of innovations We are ideally positioned with our competence in technology and innovation The agreed acquisition of Monsanto is a strategically important step good for our stockholders, our customers and our employees We are successfully implementing our strategy as an attractive employer with a strong corporate culture and outstanding employees

12 Cautionary Statements Regarding Forward-Looking Information Certain statements contained in this presentation may constitute forward-looking statements. Actual results could differ materially from those projected or forecast in the forward-looking statements. The factors that could cause actual results to differ materially include the following: uncertainties as to the timing of the transaction; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected time-frames or at all and to successfully integrate Monsanto Company s ( Monsanto ) operations into those of Bayer Aktiengesellschaft ( Bayer ); such integration may be more difficult, time-consuming or costly than expected; revenues following the transaction may be lower than expected; operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the announcement of the transaction; the retention of certain key employees at Monsanto; risks associated with the disruption of management s attention from ongoing business operations due to the transaction; the conditions to the completion of the transaction may not be satisfied, or the regulatory approvals required for the transaction may not be obtained on the terms expected or on the anticipated schedule; the parties ability to meet expectations regarding the timing, completion and accounting and tax treatments of the merger; the impact of indebtedness incurred by Bayer in connection with the transaction and the potential impact on the rating of indebtedness of Bayer; the effects of the business combination of Bayer and Monsanto, including the combined company s future financial condition, operating results, strategy and plans; other factors detailed in Monsanto s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the SEC ) for the fiscal year ended August 31, 2016 and Monsanto s other filings with the SEC, which are available at and on Monsanto s website at and other factors discussed in Bayer s public reports which are available on the Bayer website at Bayer and Monsanto assume no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.