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Bayer Q2 2009 Results
- 1. 1 Q2 2009 Investor Conference Call • Werner Wenning Science For A Better Life Q2 2009 Results Investor Conference Call July 29 2009 Werner Wenning, CEO Q2 2009 Investor Conference Call • Werner Wenning • Page 2 Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup 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 those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
- 2. 2 Q2 2009 Investor Conference Call • Werner Wenning • Page 3 HealthCare strong, CropScience at last year’s level, MaterialScience stabilizing Restructuring at MaterialScience including first permanent plant closures accelerated Further strategic progress to strengthen Chinese pharma business and CropScience seeds and traits business Reaffirm financial outlook of limiting decline in underlying EBITDA to approx. -5% Q2 2009 – Robust in a challenging environment Q2 2009 Investor Conference Call • Werner Wenning • Page 4 Q2 2009 – Robust in a Difficult Environment ² Key Figures Underlying EBITDA by Subgroup Sales 8,009 EBITDA* 1,765 Core EPS €1.05 - 9% Δ% Adj. ** Δ% - 6% - 7% - 12% ** Currency & portfolio adjusted * Before special items In € million, Δ% y-o-y EBIT* 1,101 -11% CropScience MaterialScience HealthCare 7% 63%28% Reconciliation 2%
- 3. 3 Q2 2009 Investor Conference Call • Werner Wenning • Page 5 287 HealthCare – Business Momentum Gained Q2´09 Sales Earnings ( ) Currency & portfolio adjusted Consumer Health +7% (+2%) Pharma +9% (+6%) 1,411 2,634 Q2´09 707 300 812 +15% +5% 1,112 +12% 994 406 233 235 523 +29% +1% 758 +19% 639 Q2´09Q2´08 Underlying EBITDA Underlying EBIT HealthCare € 4,045m; +8% (+5%) In € million, Δ% y-o-y Q2´08 Q2 2009 Investor Conference Call • Werner Wenning • Page 6 CropScience – Price Driven Growth Q2´09 Sales ( ) Currency & portfolio adjusted Earnings 435 423 -3% 497 -1%501 66 74 Underlying EBITDA Underlying EBIT In € million, Δ% y-o-y Q2´09Q2´08 329 315 -4% 374 0%375 46 59 Q2´09Q2´08 Bio Science +24% (+17%) 1,540 CropScience € 1,852m; +3% (+2%) 140 Crop Protection +1% (+1%) +12% +28% 172 Environmental Science +4% (+1%)
- 4. 4 Q2 2009 Investor Conference Call • Werner Wenning • Page 7 Q1´09Q2´08 Underlying EBITDA MaterialScience – Business Clearly Stabilized During Q2 Q2´09 Sales ( ) Currency & portfolio adjusted Poly- carbonates -28% (-32%) Polyurethanes -34% (-39%) 450 Earnings Q2´09 372 Underlying EBIT MaterialScience € 1,830m; -30% (-34%) In € million, Δ% y-o-y • CAS* -25% (-29%) 337 Industrial Operations -18% (-21%) 125 -116 253 -22918 * Coatings, Adhesives and Specialties -67% (y-o-y) 121 -263 Q1´09Q2´08 Q2´09 Q2 2009 Investor Conference Call • Werner Wenning • Page 8 -2.3 Cash Flow and Net Debt Development Q2´09 Cash Flow Net Debt Development GCF oFCF 1, 248 Invest- ments 370 In € billion Q1´09 Q2´09 14.0 11.71,029 Δ % y-o-y -6% +90% NCF cont. 1,399 +57% In € million +7%
- 5. 5 Q2 2009 Investor Conference Call • Werner Wenning • Page 9 2009 Financial Outlook Group Subgroups Reaffirm ambitious target of limiting the decline in Group underlying EBITDA to approx. -5% CapEx approx. €1.4bn R&D spending about €2.9bn Net debt reduction towards €10bn (before portfolio changes) HealthCare - confirmed Sales growth above market and improvement of underlying EBITDA margin towards 28% CropScience - confirmed Continued growth, underlying EBITDA margin in the range of 25% MaterialScience - updated Q3: Positive underlying EBITDA Q2 2009 Investor Conference Call • Werner Wenning Science For A Better Life