Bayer Aktiengesellschaft (OTCPK:BAYZF) Q2 2023 Earnings Call Transcript August 8, 2023 8:00 AM ET Company Participants Oliver Maier - Head of IR Bill Anderson - CEO Wolfgang Nickl - CFO Rodrigo Santos - President, Crop Science Division Stefan Oelrich - President, Pharmaceuticals Division Heiko Schipper - President, Consumer Health Division Conference Call Participants Michael Leuchten - UBS Richard Vosser - JPMorgan James Quigley - Morgan Stanley Peter Verdult - Citigroup Sachin Jain - Bank of America Vince ...

| --- | --- | --- | --- | |--------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | Q2 2023 | | | | | Investor Call //////////////// | | | | | August 8th, 2023 | | | | Cautionary Statements Regarding Forward-Looking Information This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the act ...

| --- | --- | --- | --- | |----------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | Investor Conference Call Q1 2023 //////////////// | | | | | May 11th, 2023 | | | | Cautionary Statements Regarding Forward-Looking Information | --- | --- | --- | |-------|--------------------------------|-------| | | | | | | | | | | | | | | | | | | The company assumes no | | | | | | | | | | | | liability whatsoever to update | | | | | | | | | | | | these forward-looking | ...

Bayer AG (OTCPK:BAYZF) Q1 2023 Earnings Conference Call May 11, 2023 8:00 AM ET Company Participants Oliver Maier - Head of Investor Relations Werner Baumann - Chief Executive Officer Stefan Oelrich - Head, Pharmaceuticals Division Rodrigo Santos - Head, Crop Science Division Conference Call Participants Michael Leuchten - UBS Richard Vosser - JPMorgan James Quigley - Morgan Stanley Christian Faitz - Kepler Cheuvreux Kirsty Ross-Stewart - Citi Joe Bowden - Bank of America Jo Walton - Credit Suisse Andreas H ...

Financial Data and Key Metrics Changes - In 2022, Bayer achieved sales of €51 billion, a 9% increase on a currency and portfolio adjusted basis compared to the previous year [8] - EBITDA before special items rose by 21% year-on-year to €13.5 billion, with a core earnings per share of €7.94, exceeding expectations [11][72] - The proposed dividend increased by 20% to €2.40 per share [11] Business Line Data and Key Metrics Changes - Crop Science sales surpassed €25 billion, with a 15.6% cpa sales growth driven primarily by pricing [21] - Pharmaceuticals saw a slight increase in sales, with Eylea growing 9% and new products Nubeqa and Kerendia achieving combined sales of over €0.5 billion [10][36] - Consumer Health grew by 8.4% to over €6 billion, significantly exceeding guidance [56] Market Data and Key Metrics Changes - The Crop Science division's growth was largely attributed to higher glyphosate pricing, which accounted for approximately €2 billion of the sales increase [21] - The company anticipates a decline in glyphosate sales by 15% to 20% in 2023, impacting overall sales growth [31] - The Pharmaceuticals division faced challenges in China due to volume-based procurement regulations, significantly affecting sales of Xarelto [41][51] Company Strategy and Development Direction - Bayer's vision of "Health for All, Hunger for None" remains central to its strategy, particularly in addressing global food security and healthcare challenges [7] - The company plans to focus on innovation, with a peak sales potential for new pharmaceutical products raised to over €12 billion [13] - Bayer is optimizing its portfolio by divesting non-core assets and investing in strategic partnerships, such as with Ginkgo Bioworks [17][18] Management's Comments on Operating Environment and Future Outlook - Management highlighted the unprecedented macro volatility and geopolitical challenges faced in 2022, including the impact of the Ukraine war and COVID-19 [6] - For 2023, Bayer expects a more challenging environment with normalized glyphosate prices and continued inflationary pressures [18][19] - The company anticipates EBITDA before special items and core EPS to remain ahead of midterm planning but not reach 2022 record levels [19] Other Important Information - Bayer's free cash flow more than doubled to €3.1 billion, driven by lower settlement payments compared to the prior year [74] - The company is focused on effective cash management, projecting around €3 billion in free cash flow for 2023 despite higher net settlement payouts [79] Q&A Session Summary Question: Clarification on energy cost hedging and inventory impact on P&L - Management clarified that energy costs are a small part of COGS and that inventory increases were strategic to mitigate potential supply issues [89] Question: Reasons for revenue decline in Q4 and outlook for 2023 - The decline in Q4 was attributed to the start of Adalat VBP and soft demand in China due to COVID-19 impacts [91] Question: Pharma margin recovery path and PCB litigation process - Management indicated that margin improvement will be driven by a stronger US market and cost management, while updates on PCB litigation included ongoing settlements and appeals [95][97] Question: Glyphosate pricing assumptions and hemophilia franchise outlook - Bayer expects a €900 million decline in glyphosate sales, while the hemophilia business remains resilient despite increased competition [104][106]

/////////// Investor Conference Call FY/Q4 2022 Results February 28th, 2023 Cautionary Statements Regarding Forward-Looking Information This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer 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 company and the estimates given here. These factors include ...

Bayer AG (OTCPK:BAYZF) Q3 2022 Earnings Conference Call November 8, 2022 8:00 AM ET Company Participants Oliver Maier - Head, IR Werner Baumann - Chairman, CEO & Chief Sustainability Officer Wolfgang Nickl - CFO Heiko Schipper - President, Consumer Health Division Rodrigo Santos - President, Crop Science Division Stefan Oelrich - Head, Pharmaceuticals Division Conference Call Participants Michael Leuchten - UBS Richard Vosser - JPMorgan Chase & Co. Peter Verdult - Citi Vincent Andrews - Morgan Stanley Sachi ...

Quarterly Statement Third Quarter of 2022 Bayer with continued strong performance // Group sales at €11.3 billion (Fx & p adj. + 5.7%) // EBITDA before special items rises significantly to €2.5 billion (+ 17.3%) // Crop Science achieves strong sales gains; sales also up at Pharmaceuticals and Consumer Health // All divisions report significant increase in earnings // Core earnings per share at €1.13 (+ 7.6%) // Net income at €0.5 billion // Free cash flow at €1.7 billion // Major progress in Pharmaceuticals ...

Bayer Aktiengesellschaft (OTCPK:BAYZF) Q2 2022 Results Conference Call August 4, 2022 9:00 AM ET Company Participants Oliver Maier - Head, IR Werner Baumann - CEO Wolfgang Nickl - CFO Rodrigo Santos - Head, Crop Science Stefan Oelrich - Head, Pharmaceuticals Heiko Schipper - Head, Consumer Health Conference Call Participants James Quigley - Morgan Stanley Michael Leuchten - UBS Peter Verdult - Citigroup Vincent Andrews - Morgan Stanley Sachin Jain - Bank of America Richard Vosser - JPMorgan Tony Jones - Red ...

Q2 2022 Financial Performance - Sales increased by 18% to €12819 million[14], with a currency and portfolio adjusted (cpa) increase of 10%[14] - EBITDA before special items increased by 30% to €3349 million[14], with a foreign exchange tailwind of €300 million[14] - Core EPS from continuing operations increased by 20% to €193[14] - Free cash flow decreased by 1% to €1140 million[14] Crop Science Division - Sales increased by 29% to €6461 million[19], with a cpa increase of 17%[19] driven by price (+20%)[19] and currency (+12%)[19], offset by volume (-2%)[19] and portfolio (0%)[19] - EBITDA before special items increased by 72% to €1749 million[19] - Herbicides sales increased by 51% due to favorable market dynamics[21] - Corn S&T sales increased by 10% due to new hybrid launches[21] Pharmaceuticals Division - Sales increased by 7% to €4818 million[26], with a cpa increase of 2%[26] driven by volume (+2%)[26] and currency (+5%)[26], offset by price (0%)[26] and portfolio (0%)[26] - EBITDA before special items increased by 5% to €1478 million[26] - Eylea sales increased by 12% across all regions[26] - Xarelto sales decreased by 6% due to procurement changes in China and loss of exclusivity in Brazil[26] Consumer Health Division - Sales increased by 16% to €1496 million[28], with a cpa increase of 7%[28] driven by volume (+3%)[28], price (+4%)[28], currency (+9%)[28] and portfolio (+1%)[28] - EBITDA before special items increased by 19% to €330 million[28] - Allergy & Cold product sales increased by 17% due to higher cold incidences[28] FY 2022 Outlook - Sales growth for Crop Science is expected to be ~13% (cpa)[31], with an EBITDA margin of ~27%[31] - Sales growth for Consumer Health is expected to be 6%-7% (cpa)[31], with an EBITDA margin of 22%-23%[31] - Group sales are projected to be €47-48 billion[36], with an EBITDA margin of 26-27%[36] and core EPS of ~€730[36]