A Global Leader in Health & Nutrition - Science for a Better Life Investment Case - April 2022
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Science for a Better Life
A Global Leader in
Health & Nutrition
///////////
Investment Case
April 2022 / Bayer AG
1 /// Bayer AG /// Investment Case /// April 2022
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 those discussed in Bayer’s public reports which are available
on the Bayer website at http://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 /// Bayer AG /// Investment Case /// April 2022
Group Overview
Winning Portfolio
Bayer: A Global Leader in Health and Nutrition
Well Positioned to Create Value in Growing Markets using Science to Address Societal Megatrends
Market Size
Crop Science
Bayer Group Sales
~€100bn1
#3 OTC Player
Consumer #1 in Sales and
Health Profitability & R&D
Crop Science
Pharmaceuticals
12%
~€1,000bn2
€44.1bn 46%
FY 2021
Leading
Positions in
42%
Key
Therapeutic
Consumer Health
Areas
Pharma
1Source: Company Estimates
~€150bn3
2Source: IQVIA MIDAS MAT Q3-20
3Source: Nicholas Hall & Company DB6
3 /// Bayer AG /// Investment Case /// April 2022
Group Overview
Global Megatrends in Health & Nutrition
Attractive Macro Drivers of Our Strategy and Underpin the Need for Innovation
Pharmaceuticals Consumer Health Crop Science
Aging Population Growing Population Pressure on Ecosystems
Megatrends People 60+ +2.2bn +50% -20%
more than people1
through -17%
doubling1 more food and feed
2050 required to meet Harvest losses from 2016 2050
growing demand2 climate change3
Significant loss in
>20% of total population1 arable land per capita4
Societal Preserve and Secure sufficient Use natural resources more
Needs restore health supply of quality food efficiently and responsibly
Our
Mission We leverage science to address these societal needs –
with the ultimate goal to improve people’s lives
1 UNDESA 2017 (United Nations Department of Economic and Social Affairs, Population Division (2017). World Population Prospects: The 2017 Revision)
2 FAO 2017, (FAO Global Perspective Studies)
3 Nelson et. al, (2014); FAO 2016 “Climate change and food security”
4 FAOSTAT (accessed Oct 30, 2018) for 1961-2016 data on land, FAO 2012 for 2030 and 2050 data on land, and UNDEDA 2017: World Population Prospects for world population data
4 /// Bayer AG /// Investment Case /// April 2022
Group Overview
Leadership and Innovation Set the Course for Our Future Growth
Key Growth Drivers
Long-term megatrend tailwinds are propelling growing demand in the Life Sciences
Number one position in Ag inputs and leading positions in key Pharma and Consumer categories
World-class innovation: technological breakthroughs driven by the bio-revolution
Accelerated transformation and further efficiency gains in our operations
Focus on sustainability to create new value
Crop Science Innovation Pipeline Pharmaceuticals Innovation Pipeline
Annual R&D Investment: Key Mid-/Late-Stage Pipeline Opportunities: Annual R&D Investment: Key Mid-/Late-Stage Pipeline Opportunities:
€ 2.0bn € 3.1bn
• Short Stature Finerenone Factor XI(a) portfolio
Corn • Non-diabetic CKD • Thrombo-embolic
• Heart Failure diseases
Key Current Launch Products: • Soybean Key Current Launch Products:
Herbicide Trait Elinzanetant (KaNDy NT-814)
• Vasomotor symptoms during menopause
Stack with
Five- Fox Supra (Indiflin®)1
Tolerances
Note: Subject to regulatory approvals and pending registrations. Represents a subset of the pipeline.
1 In collaboration with Sumitomo
5 /// Bayer AG /// Investment Case /// April 2022
Group Overview
New Transformation Program with Gross Contributions of >€1.5bn
Expect Partial Reinvestment to Drive New Opportunities; Remainder to Drive Margin Expansion
Transformation Programs Delivery
€2.6bn
• Bayer 2022 program successfully concluded
> €1.5bn
• We accelerate our transformation to become
gross leaner and more agile
contributions*
gross
• Divisions and Enabling Functions
contributions*
• Improving our go-to-market models
• Strengthening our digital and data capabilities
Bayer 2022 synergy New transformation • Structural measures and optimization of
and efficiency program external spend
program
(announced in 2018)
* Gross contributions will be partially re-invested to fuel growth and are included in our guidance for 2022-24
Note: One-time costs in same magnitude as for Bayer 2022 (1.7x the total contribution)
6 /// Bayer AG /// Investment Case /// April 2022
Group Overview
Focus on Cash Generation Now Embedded in Incentive Plans
Improvements Expected from Sales Growth, Working Capital & Divestments; Litigation Pay-outs and One-
Time Costs for Transformation Mitigating Factors
Improve Free Cash Flow Adapt incentive scheme
Free Cash Flow integrated as a key
Optimize working capital focusing
performance metric in our short-term
on overdue management, inventory
incentive plan for all managerial
and payables; prioritizing CapEx
employees
Capital Employed / Divestments Litigation pay-outs & special items
Optimization of fixed asset portfolio,
for example sale of property Our Free Cash Flow is impacted by
litigation pay-outs and cash-effective
Sale of businesses / brands below one-time costs for transformation
division level (e.g. ES professional)
ES: Environmental Science
7 /// Bayer AG /// Investment Case /// April 2022
Group Overview
Disciplined Capital Allocation to Delever, Pay Dividends and Invest
Expect Net Debt to Return to €28-30bn by 2024
Capital allocation priorities Net financial debt development
In €bn
33 33-34
Rating target: 28-30
Deleveraging
A category 3.4
Free Cash
Flow 2.8-
Pay-out range: 3.0
Dividends
30-40% of cEPS
Divestment
proceeds1
External growth Bolt-on M&A,
investments Leaps
2021 2022e2 2024e3
Net financial debt
Leverage ratio
1 From non-strategic divestments below divisional level and sale of other fixed assets
2 Currency assumptions based on month-end Dec 2021 spot rates (1 EUR=) 1.13 USD, 6.31 BRL, 7.20 CNY, 130 JPY, 85.4 RUB
3 Currency assumptions based on month-end Dec 2020 spot rates (1 EUR=) 1.23 USD, 6.37 BRL, 7.98 CNY, 126 JPY, 91.5 RUB
= Indicates corridor between high- and low case
8 /// Bayer AG /// Investment Case /// April 2022
Group Overview
Sustainability is Integral to Our Values, Strategy and Operations
We intend to create bold impact and generate sustainable business opportunities
Pharmaceuticals Consumer Health Crop Science
Megatrends Aging Population Growing Population Pressure on Ecosystems
Preserve and Secure sufficient Use natural resources more
Societal Needs restore health supply of quality food efficiently and responsibly
Our Vision: Health for all, hunger for none
Impact
Help more people Decrease ecological
thrive footprint
Sustainable
Long-term business growth through sustainable innovation
Growth
9 /// Bayer AG /// Investment Case /// April 2022
Key Takeaways
Group Overview
Investment Thesis
Key Takeaways
1 We are a global leader in Health & Nutrition that addresses societal megatrends
2 We are well-positioned to shape disruption in the bio-revolution
3 We expect to translate innovation into profitable mid-term growth
4 We expect to improve our profitability by accelerating our transformation
5 We have disciplined capital allocation priorities: delever, pay dividends and invest
6 We have integrated sustainability in our business strategy and incentive systems
10 /// Bayer AG /// Investment Case /// April 2022Science for a Better Life
Shaping the Future
of Agriculture
///////////
Investment Case
April 2022 / Bayer AG
11 /// Bayer AG /// Investment Case /// April 2022Shaping the Future of Agriculture
1 Market & Position 4 World-Class Innovation
2 Strategy 5 Digital Transformation
3 Operational Performance 6 New Standards in Sustainability
12 /// Bayer AG /// Investment Case /// April 20221 Market & Position
The Established Leader in Crop Science
Industry Leading Sales, Profitability and Unmatched Investment in R&D to Fund Future Growth
Largest in Sales Highest Profitability
Total Sales1 (€bn) EBITDA1 (€bn) / EBITDA1 Margin (%)
11.2 9.0 20,2 4,7 23.2%
Syngenta 16,2 Syngenta 3,2 19.6%
+ Adama2 + Adama2
Corteva 13,2 Corteva 2,2 16.5%
BASF 8,2 BASF 1,4 16.8%
Crop Protection/ES Seed & Traits
1 Company information ; exchange rate: FY 2021: ~1.18 USD/EUR. EBITDA before special items. FY2021 sales (except for Syngenta + Adama)
2 Represents the legacy Syngenta results plus Adama of FY 2020
13 /// Bayer AG /// Investment Case /// April 20221 Market & Position
Global #1 in Seed & Traits with Leading Crop Protection Portfolio
Sales by Region – Bayer Crop Science Market Positions1
Product areas – Bayer Crop Science
In %, based on sales 2021 €20.2bn
In %, in 2021
€20.2bn Corn S&T #1
Other Soybean S&T #1
Vegetable Seeds Corn Seed & North 21 EMEA
Environmental Science 37 Traits America Vegetable Seeds #2
5 26 43
Insecticides 7 11 Asia / Pacific Herbicides #1
11
Soybean Seed & Fungicides #2
Traits 26 25
15 Herbicides Insecticides #3
Fungicides Latin
America
Product areas – Ag Input Market Sales by Region – Ag Input Market Key Products
In %, based on sales 2020 ~€100bn1 In %, in 2020 ~€100bn1 Crop Protection: Digital:
Corn Seed &
Other Traits
North EMEA
America 24 24
18 15
Vegetable Seeds
4
Environmental Science
6 24 Herbicides
Latin 24 Asia / Pacific Seed & Traits:
13 28
Insecticides 6 14 America
Soybean Seed & Fungicides
Traits
1 Source: Company estimates. Market positions based on 2020 data.
14 /// Bayer AG /// Investment Case /// April 20221 Market & Position
Megatrends Drive Market Growth and Need for Innovation
Ag Market Remains Attractive with Expected ~3% CAGR1 to 2030
Expected 10 Yr. Global Ag Input
Market Growth Rate
Demand Supply
50% 17%
Harvest losses
3% More food, feed from climate
CAGR & biofuel2 needed change2
2020E Global Ag Input Market
Crop
Protection
Seed and
Traits
10bn World population2 12m Ha of agricultural land
loss annually
~€100bn1
70% More meat in
developing
nations2 needed 20% Reduction in arable land
per capita2
1 Source: Company estimates. Total of ~€100bn includes ~€6bn value of Environmental Science; graph does not.
2 Source: FAO 2017, The Future of Food and Agriculture, by 2050
15 /// Bayer AG /// Investment Case /// April 20222 Strategy
Purpose Shaping agriculture for the benefit of farmers, consumers and the planet
Strategic Perform Transform
Ambition Grow above market and deliver Achieve 100% digitally enabled
strong returns sales by 2030
PillarsOperational Performance
World Class Innovation
Digital Transformation
New Standards in Sustainability
Winby being more grower centric
Health for all,
Vision hunger for none
16 /// Bayer AG /// Investment Case /// April 20223 Operational Performance
A Clear Plan to Accelerate Growth and Outperform the Market
1 Deliver growth in crop protection sales through new products, integrated offerings
2 Grow corn seed & traits with annual portfolio refresh and new insect traits
3 Upgrade the Americas to next-gen soybean trait technology
4 Implement new vegetable seeds strategy and launch new traits in cotton to drive growth
5 Achieve planned 2022 synergies in 2021; accelerate with new efficiency program until 2024
17 /// Bayer AG /// Investment Case /// April 20223 Operational Performance
Progressing from Volume to Value with Our Crop Protection Vision
Today Future
Enhanced by Digital Farming
Leading Portfolio
Solutions
Convergence of Advances in Small Molecules, Biology and Biotechnology Innovation with Digital Technology to Create New Value and Sustainable Productivity
Leadership in value, treated area Industry Leading CP Development New Insights and Precision Application
AND exceptionally low crop • >15 new AIs launched in the past 15 years; 8 with Digital Tools
protection environmental impact AI in development and 2 launching in 2022
• Crop specific digital application timing to
1.
2018 Crop Protection Environmental Impact optimize disease control and yields
of Crop Protection
Advances in Formulation Technology
Sales Value • Leadership in
(EUR) formulation
technology enables
Total Area
(HA)
lower volumes with
equivalent or better
Environmental efficacy; drone- Treated with
Delaro®
Untreated
Check Strip
Treated with
Delaro®
Impact (CP) specific
formulations for • Showing and sharing value of fungicide
0% 20% 40% 60% 80% 100% safety and precision applications with growers’ data
Bayer Multinationals Others
1 Note: Environmental impact study conducted by University of Denmark; other multinationals consists of combination of four multinationals.
18 /// Bayer AG /// Investment Case /// April 20223 Operational Performance
Herbicides: Focused on Unlocking Greater Flexibility
Herbicide sales in 2021: €5.3bn, Pipeline Peak Sales Potential of ~€3bn
• Pyroxasulfone
3 New Herbicide • First new mode of action in post
MoA • Diflufenican
emergence weed control in 30
Molecule years
• Aclonifen NEW
• Mateno Complete includes Aclonifen, a new herbicide mode of • Potential to build on #1 position in global herbicides1
action for Australia
• Suitable for use in wheat and barley for hard-to-control grass • Allows use in various market segments, beyond traditional
and broadleaf weeds nonselective use
PSP of >€50m Project is currently in Phase 3
Registration and launch expected in time for 2022 season
Mix Partner + New Herbicide
Untreated Control Treated
Mateno Complete Glyphosate Standard 1 Product concept with new active
1 Internal estimates
19 /// Bayer AG /// Investment Case /// April 20223 Operational Performance
Fungicides: New Innovations Drive our Growth Potential
Fungicide sales in 2021: €2.9bn, Pipeline Peak Sales Potential of ~€4bn
3
• Includes next-gen • Prothioconazole
• Powered by
technology Indiflin®1, • Trifloxystrobin Fluoxapiprolin
with Prothioconazole MoA • Fluopyram
• Offers unrivaled control of Asian • Better resistance management and broader • New global horticulture fungicide with best-in-
Soybean Rust spectrum class MoA; delivers outstanding protection of
grapes, potatoes and vegetables
• Builds on #1 position in soybean • Consistent yield advantage over standard
fungicides2 in LATAM solutions • Higher, longer-lasting efficacy above
established standards
PSP of >€400m PSP of >€100m PSP of >€150m
Expected to launch in 2022 in Brazil Launched in the U.S. in 2021 Expected to launch in 2022 in Australia (grapes)
Typical use rates:
potatoes, vegetables [g/ha]
Mandipropamid
Cyazofamid
Metalaxyl
XIVANA®
Competitor3 Fox Supra Untreated Control Treated 0 50 100 150
Use in soybeans in Frankenmuth, Michigan, 2019
1 In collaboration with Sumitomo; 2 Internal estimates, 3 BASF Orkestra Ultra
20 /// Bayer AG /// Investment Case /// April 20223 Operational Performance
Insecticides: New Launches Drive our Global Expansion
Insecticide sales in 2021: €1.4bn, Pipeline Peak Sales Potential of ~€2bn
• Fast-acting and long-lasting • First ketoenol insecticide
control of all important expected to offer both foliar and
caterpillars and selected Plenexos soil uses against key sucking
beetles and sucking pests pests (aphids, white flies)
• Diamide insecticide with active ingredient Tetraniliprole • Spidoxamat2 is suitable for application in arable and horticulture
crops (soybeans, cotton, fruits and vegetables)
• Expansion in Asia Pacific; recently launched in key markets like
China and Vietnam and now registered in 21 countries • Regulatory submissions in key markets planned in 2022,
• Use in key crops; corn, rice, potatoes, fruits & nuts and approvals expected starting in 2024
vegetables
Peak Sales Potential ~€300m
Peak Sales Potential >€300m
Tetraniliprole
Untreated Control Vayego duo Untreated Control Spidoxamat - Foliar
21 /// Bayer AG /// Investment Case /// April 20223 Operational Performance
Biologicals Create New Value; Enable Crop Management Benefits
Leveraging the Power and Sustainability Derived from Microbes
Bayer is the #1 Trusted Brand in Biologicals by Growers4
SeedGrowth Foliar & Soil applied
Crop
Soilborn Performance
Corn Yield Soy Yield Nematicide Fungicide Other Insecticide Fungicide Disease/Pest Enhancers
TagTeam®3 TagTeam®3
In-licensed / 1 Poncho® Votivo®2 Integral® Pro2
Commercial Optimize®3 JumpStart®3
Products
1 Also sold under Acceleron® and Torque®3 brand names; 2 3rd party product from BASF, 3 In-licensed from Novozymes
Business Opportunities Vibrant Innovation Ecosystem
Reduction of environmental impact of Crop Protection
Maximizing yield potential of high value germplasm
>20 In-licensed/
Commercial >5 Ongoing collaborations
and licensing partners
products
Increasing nitrogen use efficiency
>10 >30
Use in Tailored solutions to leverage our full portfolio, combining Pipeline Assets under evaluation for
biologicals, chemistry, germplasm and digital to deliver new grower value Candidates5 new collaborations or in-
licensing opportunities
4 75-100 growers polled in each of seven countries (Europe, Brazil, US) for potato, tomato and grapes, Bayer Market Research 2020, 5 Includes early research and collaborations
Reaching >60m acres in row crops and high value horticulture and vegetables acres
22 /// Bayer AG /// Investment Case /// April 20223
4 Operational Performance
Deploying >250 Corn Hybrids in 2021 to Expand Leading Position
Foundational to Expected Growth in Our > €5bn Global Annual Corn Seed & Trait Sales
Mid-Term Key Growth Drivers in Corn
NEW
Superior-performing Bayer branded hybrids capture #1 Launching CRW3 as a part of VTPro4, SmartStax Pro and VT4Pro
brand share position in the U.S. in 2021. stacked offerings in the near-term; game-changing short-stature corn
expected launch in the mid-term in the U.S. and Brazil.
United States #1 Market Pos. Argentina #1 Market Pos.
NEW: 4
Market Size: ~93m acres Market Size: ~20m acres
Germplasm Share: >55% Germplasm Share : ~60%1 LAUNCHED Expected Launch
2022 2024 2023/27 F
Mexico #1 Market Pos. Europe #2 Market Pos.
Market Size:
Short-Stature
~20m acres Market Size2: ~60m acres 3
Corn
Germplasm Share : >65%1 Germplasm Share: ~20% LAUNCHED 2022e: ~100K acres Industry-First
2021 Adds CRW3 to Provides increased
SmartStax plant stability and
Brazil #1 Market Pos. South Africa #1 Market Pos. more precise use of
CRW3 is Industry’s inputs by enabling
Market Size: ~52m acres Market Size: ~6m acres Only RNAi-Based Insect late-season
Trait for Rootworm applications
Germplasm Share1 : ~30% Germplasm Share : ~70% 2021e: ~500K acres Control
Adds CRW3 and
Note: Size of market, market position and germplasm share measured as of 2021.
addl. mode of
1 Inhybrid corn market only; 2Eu27 +UK, Russia and Ukraine above-ground
3SmartStax® PRO corn products will be commercially available for the 2022 growing season.
4VT4PRO with RNAi Technology is not currently available for commercial sale or commercial planting. Commercialization is
insect control to
dependent on multiple factors, including successful conclusion of the regulatory process. The information presented herein is VT3Pro
provided for educational purposes only and is not and shall not be construed as an offer to sell.
23 /// Bayer AG /// Investment Case /// April 20223 New Standards
Operational Performance
in Sustainability
Upgrading the Americas to Next-Gen Soybean Trait Technology
United States and Canada
Bayer Soybean Trait Offerings:
# 1
Market Pos.
LAUNCHED
2020 2021 2027 F
HT4
1 South America Industry’s First
# Five-Tolerance
Market Pos. Bayer Soybean Trait Offerings: ~50m acres 2021: ~16m acres Soybean Trait Stack
Glyphosate & Adds Glufosinate Adds 2,4-D, HPPD
LAUNCHED tolerance to XtendFlex
2020/2021 2028F+1 Dicamba Tolerance to
2021/2022 Roundup Ready 2
Tolerance
Xtend
3rd Gen.
Insect
Control
~85m acres 2021/22: >800k acres
Insect Resistance & 2022/23e: >6m acres HT4
Glyphosate Tolerance
Brazil Only Industry’s First
Adds Mode of Action for Five-Tolerance
Insect Resistance & Soybean Trait Stack
Dicamba Tolerance
+2.89 bu/acre 3
1 Launch timing reflects Brazil
2Currency and portfolio adjusted
3 Compared to similar varieties in checks across 500 locations in 2020/2021 crop year
24 /// Bayer AG /// Investment Case /// April 20223 Operational
biotech Performance
Fourth-Gen
Phase 3
Multiple Traits in Late-Stage Development for Cotton Farmers
Leading Innovation for Cotton Growers Driving Growth in >€500m1 Cotton S&T Business
1st generation 5 herbicide
tolerances 4th generation
• Glyphosate • HPPD • Season-long protection with
• First-ever biotech trait for HT4 Bollgard 4 multiple modes of action for
piercing and sucking insect • Dicamba • PPO
control
Cotton Cotton key lepidopteran pests
• Glufosinate
Stewarded Commercial Launch in 2022 in the U.S. ADVANCED to Phase 3 ADVANCED to Phase 3
Control HT4 Cotton Control Bollgard 4 Cotton
Scott, Mississippi, U.S. 2x 5-way tank mix at V3 stage in US2020 field trial in Scott, MS 2019 Rocky Mount NCSU Results
Sep. 27, 2021
1 2021 cotton seed & trait sales for Bayer Crop Science
ThryvOn™ Technology has received full approval for planting in the United States but, as of the date this material was published, is pending approval in certain export markets. Specific plans for commercialization depend upon regulatory approvals and other factors.
25 /// Bayer AG /// Investment Case /// April 20225
4 World-Class
Leadership Innovation
Unmatched R&D Investment Powers Industry-Leading Portfolio
Ag R&D Investment (€bn)
2,0
#1 R&D Platform
in Crop Science
1,2
1,0
0,9
>7,100 R&D
employees3
Bayer Crop Science
1
Syngenta + Adama
2
Corteva BASF Ag >100 key
Ag Chem Seed & Traits collaborations;
partner of choice
1 2021 reported results, company information; exchange rate: FY 2021: ~1.18 USD/EUR
2 2020 reported results, represents the legacy Syngenta results plus Adama, includes capitalized development costs
3 Includes permanent and temporary employees
26 /// Bayer AG /// Investment Case /// April 20224 World-Class Innovation
Pipeline with Up to €30bn Peak Sales Potential Delivering for Farmers
Eight Projects Advance, Eight New Formulations Launch and Hundreds of Seed Deployments in 2021
Value of Up to €30bn
>300 New crop in Cumulative Peak Sales Potential1
>500
protection
~50% Incremental
registrations up to
8
Cumulative contribution of
New formulations projects reaching PSP (in %) ~ €30bn
New hybrids and varieties launched
Other
2
deployed across corn, cotton
New actives ~
soybeans and vegetables
advanced Insecticides
Fungicides
Herbicides
5
~
Soy S&T
New trait projects Soybean Seed Placement Corn S&T
advanced across corn, digital tool advances to
soybeans and cotton Phase 2
Cumulative PSP
by SBE
1 Represents non-risk adjusted estimated peak sales for the combined breeding, biotech, crop protection and environmental science pipelines, as well as new business models and new value areas. PSP = Peak sales potential SBE = Strategic Business Entity
27 /// Bayer AG /// Investment Case /// April 20224 World-Class Innovation
Short-Stature Corn Offers Transformational Shift in Production
Anticipated Fit on >220m Acres and Estimated Incremental Peak Sales Potential of ~€1bn for NA
Field Plots Around the Globe Demonstrate Key Features and Benefits of Short-Stature Corn
Game-Changing Innovation Digitally Optimized System More Sustainable Future
• Unparalleled production stability with • Extended in-season crop access due to • Potential to optimize use of key nutrients like
improved standability in high winds and shorter height nitrogen, as well as reducing land and water
challenging weather conditions requirements
• Supports tailored solutions with precise in-
• Annual yield losses due to stalk lodging in season crop protection • Opportunity to plant at higher densities, as
the U.S. range from 5% to 25%1 evidenced in Vitala commercial beta in
Mexico
short-stature corn
lodged corn
Spray Rig in Short-Stature Corn Plot Poseyville, Indiana July 2021
Iowa 2020 Trials Following Derecho Windstorm
Jerseyville, IL August 2019 Nitrogen Y-Drops for Precise In-Season Application
1 Purdue University (http://www.extension.purdue.edu/ay/ay-262.html
28 /// Bayer AG /// Investment Case /// April 20224 World-Class Innovation
Three Generations of Soybean Herbicide Tolerance Traits
Technologies Provide Solutions to Address Farmer’s Needs, Herbicide Resistance Challenges
3 herbicide
tolerances 5 herbicide
tolerances 6 herbicide
tolerances
• Glyphosate
• Glyphosate • Glyphosate
HT4 HT5 • Dicamba
• Dicamba • Dicamba
Fourth-Gen Fifth-Gen • Glufosinate
• Glufosinate
• Glufosinate Phase 3 Phase 2 • HPPD
LAUNCHED • HPPD
in 2021 on ~16m Expected 2027 • 2,4-D
• 2,4-D
commercial acres launch • PPO
Control Soybean HT4
Enlist E3 Soybeans XtendFlex Soybeans Control HT4 Soybeans
Third- Control HT5 Soybeans
June 29th, 2021 / Storm Lake, Iowa July 14th, 2021 / Jerseyville, Illinois
Gen. July 14th, 2021 / Jerseyville, Illinois
Always read and follow label instructions. Products not registered in all jurisdictions.
29 /// Bayer AG /// Investment Case /// April 20225 Digital
data science
Transformation
Digital Farming Solutions Underpin and Enhance Our Ability to Bring
Transformational Solutions to Agriculture
Our Positive Impact on Agriculture Three Core Value Drivers
• Increase yield and improve profitability
Franchise Value
• Leverage information to manage risk
and address variability
• Manage fields down to the square meter, to Downstream Value
farm more efficiently and sustainably
• Seamlessly collect, visualize and analyze
data to enable more informed decisions Platform Value
30 /// Bayer AG /// Investment Case /// April 20225 Digital
data science
Transformation
Climate FieldView Provides Unmatched Visualization, Analysis and
Insights to Enable Growers to Enhance Productivity
Climate FieldView
• >180m subscribed acres • Largest database of grower
and field trial seed
• #1 brand in digital ag1 performance data in industry
• Operates in 23 countries • >70 partners on platform
In-cab Performance Performance Field health images Prescription
visualization Visualization Evaluation Delivery
1 according to Kynetec December 2021 FieldView Brand Tracker
31 /// Bayer AG /// Investment Case /// April 20225 Digital
data science
Transformation
Digital Unlocks Scalable Climate-Smart Business Models
Carbon Markets Valued at >$200bn/year1 and Growing with Consumers' Demand for Sustainability
has the potential to
Carbon Initiative
streamline the way carbon is measured,
verified and reported, to enable scalable,
climate-smart business models ~2,500 participating
farmers in Brazil 10 covered
countries
1.5m acres
globally
and the U.S. alone
Quantification
Long-term program providing annual incentives to Climate FieldView enrolled growers
for verified and validated climate-smart practices like no-till and cover cropping
Ranked #1 in the U.S., scoring very high in terms of grower trust 2
CO2e Total Enables 3 Expected Downstream Revenue Opportunities
Verification & Reporting
Carbon Product Carbon
Services sales assets
Project Carbonview, collaboration with Bushel, CHS Inc., largest Ag Coop in the U.S.,
The Andersons, and built on Amazon Web agreed to be our carbon program
Crop Rotation by Field Services cloud infrastructure, expected to track provider, providing advice to growers
carbon emissions across ethanol chain moving to sustainable practices.
1 Source: https://www.reuters.com/article/us-carbontrading-turnover/global-carbon-trading-turnover-at-record-214-billion-last-year-research-idUSKBN1ZN1RN; 2 Forward Group Research Carbon Credit Program Perceptions & Evaluation, July 2021
32 /// Bayer AG /// Investment Case /// April 20225 Digital
data science
Transformation
Enabling New Digital Platforms in Ag
Opens Access to Participate in Broader B2B AgTech Value Pools; Expanding into Digital Marketplaces
Orbia: First Digital Ag-Marketplace
Collaboration • JV between Bayer and Bravium1
• Connects growers, input providers and
grain traders to a network to expand
their reach, secure financing, redeem
rewards, purchase and sell inputs
• Combines Bayer’s ag expertise and leading digital farming
platform with Microsoft’s cloud technology and unrivaled
B2B solutions, to enhance digital infrastructure • Established in 2019 in Brazil
• Main agricultural marketplace with
• Cloud-based set of digital tools and data science solutions
for agriculture and adjacent industries largest loyalty program
• >300 distributors with inputs such as
• Seeking to create and commercialize off-the-shelf pesticides, seeds and fertilizers
opportunities for other companies to enter and innovate
directly in ag and other industries. • >185,000 registered growers
• Solutions to address farming operations, sustainable • Covers ~70% of planted area
sourcing, manufacturing and supply chain improvement,
and ESG monitoring and measurement
Expansion to Argentina,
Colombia and Mexico
1 Brazil-based marketing agency.
33 /// Bayer AG /// Investment Case /// April 20226 New Standards in Sustainability
Setting the Standard for Sustainability and Biodiversity in Agriculture
Bayer’s 2030 Sustainability Commitments
Advancing a carbon-zero
future for agriculture
30
Reduction of field
• Climate-smart practices:
• No-tillage Highly Productive Crops
• Cover Crops Precision Agriculture
greenhouse gas emitted • Optimize use of synthetic fertilizers
per kg of crops produced through the use of microbes
Produce higher-yielding crops
with fewer natural resources
30
Reduction in Crop
•
•
Climate FieldView for precision
application of crop protection
Resistant traits help to reduce
crop protection use
and inputs Protection impact
on the environment
• Develop and promote crop protection
solutions with lower environmental impact
.
100
• Enhancing social innovation
Empower 100 million (e.g. with Better Life Farming)
smallholder farmers to access Smallholders benefit from
• Digital transformation with
FarmRise
access to products, services
sustainable Ag solutions and partnerships
• Introduce new, higher-yielding,
resource efficient rice hybrids
34 /// Bayer AG /// Investment Case /// April 2022Science for a Better Life
Pharmaceuticals:
Driving Continued
Long-term Growth
///////////
Investment Case
April 2022 / Bayer AG
35 /// Bayer AG /// Investment Case /// April 2022Pharmaceuticals: Driving Continued Long-Term Growth
1 Market & Position
2 Strategy
3 Growth Drivers
4 Innovation
36 /// Bayer AG /// Investment Case /// April 20221 Market & Position
We are Operating in a Rapidly Changing but Attractive Market
Environment Driven by Megatrends and the Bio Revolution
Pharma Market Market Dynamics
Market Size 2021e1 Opportunities
Japan • Aging and growing population megatrends
China 7% • Rising life expectancy and increased access to
12% healthcare systems
APAC 6% • Accelerated digital transformation across the value
~ €1,180bn 48% Americas chain
• Technological disruption by breakthrough science
27%
EMEA • Shift from treatment to prevention and potential cure
Challenges
Market CAGR 2021-25e1 • Pressure on pricing
• Declining R&D productivity
4 - 5% • Increased pressure for value and real-world evidence
1 Source: IQVIA Market Prognosis as of September 2021
37 /// Bayer AG /// Investment Case /// April 20221 Market & Position
Bayer Pharmaceuticals Holds Strong Positions in Areas of High
Unmet Medical Needs, Generating Growth and Attractive Returns
Bayer Pharmaceuticals – Sales and EBITDA margin before special items 2011-20211) Sales by therapeutic area
In % for 2021
Other
EBITDA
Sales margin before Hematology* 10
[€bn] special items 5
36 Cardiovascular*
Ophthalmology* 16
20 60%
8
18 Oncology 10 16
50% Radiology* Women´s Health*
16
* Market leading positions
14
Margin corridor 30-35% 40%
12
10 30% Sales of top products
In €m for 2021
8
20% 4,735
6
2,918
4
10%
1,170
2
823
0 0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
763
Sales EBITDA margin before special items
1) as reported in the respective fiscal years
38 /// Bayer AG /// Investment Case /// April 20221 Market & Position
Strong Volume Expansion in FY 2021
Sales
Sales EBITDA Key Messages
InIn
million €,€,
million ∆% yoy,
∆% yoycpa. In million €, before special items
• Solid topline growth after COVID-19 related
restrictions in prior year
Volume
+6% • Flagship products performed particularly
+9%
(+7% cpa)
well, contributing ~60% to higher sales:
18.349
Price 17.243 • EyleaTM +19%
-2%
• XareltoTM +6%
-4%
Currency 6.016 5.779 • Successful launch of KerendiaTM and
-1% continued rollout of NubeqaTM and
VerquvoTM
Portfolio • Lower earnings reflect continued
+0%
investments into R&D and marketing of
34.9% 31.5%
new products
FY'20 FY'21 FY'20 FY'21
EBITDA Margin before special items, cpa = currency and portfolio adjusted Sales growth rates in Key Messages cpa = currency and portfolio adjusted
39 /// Bayer AG /// Investment Case /// April 20222 Strategy
Our Strategy is Geared Towards Continued and Sustainable Long-
term Growth, also Addressing Loss of Exclusivity of Major Products
Capture the value of the current portfolio and manage LoE for Xarelto & Eylea
Grow new potential blockbusters
Build digital health solutions
Capitalize on Cell & Gene therapy platform
Build an at scale player in oncology in our areas of focus
Evolve regional strategies in China and the US to sustain future growth
40 /// Bayer AG /// Investment Case /// April 20222 Strategy
Over the Last Three Years we Successfully Launched
Four New Drugs and Strengthened Pipeline and Technologies
Main Building Blocks of Post LoE Growth
1
Late-stage Pipeline Elinzanetant
(KaNDy NT-814)
in CV & WH PSP ~ €0.5bn PSP ≥ €1.0bn PSP ≥ €1.0bn
launched in 2021 launched in 2021 potential launch in 2025
2
Pipeline
Oncology eg. EGFRexon20 inhib., ATR
inhib., TTCs
PSP ≥ €3bn PSP > €0.75bn
launched in 2019 launched in 2019
C> platform expected to deliver
Cell & Gene Therapy
significant sales contributions from
Platform
~2025 onwards
External Innovation >40 BD&L transactions signed since 2020
and BD&L Enhanced focus on external innovation to replenish pipeline
1 In collaboration with Merck & Co. Inc., Kenilworth, NJ, USA
2 In collaboration with Orion Corporation
PSP = Peak Sales Potential
41 /// Bayer AG /// Investment Case /// April 20223 Growth Drivers
Capturing the Full Commercial Potential of Market Leading
Therapies
Guidance FY2022 Guidance FY2022
Higher volumes to largely offset Mid-single digit growth
12 months impact of VBP2 in China
New indications & label updates in 2021 2 Phase III studies with high-dose formulation (initiated 2020)
Pediatric VTE: approved in EU, Japan, Canada
PHOTON (DME)
(EINSTEIN Jr) and the US (EINSTEIN Jr & UNIVERSE)
Goal: Prolongation of injection
intervals
Symptomatic peripheral artery disease (VOYAGER PAD): PULSAR
label update approved both in the EU & US (neov. AMD)
Prefilled syringes launched in 2020 in EU and JP
European Patent Office confirmed patent protection for once-
daily treatment until 2026
Apr. 2024 Jan. 2026
+ 21 months
42 /// Bayer AG /// Investment Case /// April 20223 Growth Drivers
Kerendia is a Game Changer for CKD and Type 2 Diabetes Patients
Next milestone in renal disease treatment, continuing our RAAS-centric treatment history
Largest clinical program Successful launch trajectory Entresto
with unparalleled data1
2020 Weekly TRx (US)
Novel MOA intensifies 3.000
RAAS inhibition (gold-
standard for treatment) 2.000
1.000
ARBs Treatment continuity for
HCPs with trust in RAASi for 0
1990’s CV and kidney outcomes Week 22
Full global rights including the US
ACEi Characteristics of CKD/T2D
1980’s Broad early adoption following US launch in Q3 2021
160m patients globally
Updated ADA guidelines
Shortens life expectancy
by 16y Approved in EU in Feb. 2022
1st Gen #1 cause for Phase III trials in 2 additional indications (HFpEF, non-
1960’s
MRAs dialysis/transplants diabetic CKD) with results in 2024/25
1 13,171 patients early in DKD progression
43 /// Bayer AG /// Investment Case /// April 2022Kerendia sets the stage for a long-term cardio-renal vision and
targets to deliver blockbuster potential
Unmet Needs
Kidney Dedicated CardioRenal Disease Modifier
Need for RAASi
intensification
Need for earlier
use in disease
progression
Need for disease Establish Kerendia as the Heart failure Non-diabetic
modification and next gen RAASi for CKD
(HFpEF)
outcomes
CKD/T2D
Phase III studies:
(2024E) (2025E)
(2020/2021)
Dates indicate primary trial completion according to clinicaltrials.gov
44 /// Bayer AG /// Investment Case /// April 20223 Growth Drivers
We are Targeting to Significantly Expand our Presence in Selected
Areas of Oncology where One Blockbuster can Build a Franchise
Key elements to achieve our growth aspiration
• Continue to build strong prostate cancer franchise
with NUBEQA and Xofigo
• Realize >€3bn peak sales potential of NUBEQA
• Continue to execute launch of VITRAKVI
• Expand into IO-combo opportunities with Stivarga
Pipeline • Accelerate early pipeline projects
BD&L • Seek external growth opportunities through BD&L
• Continue to invest in next generation disruptive
2020 ~10+ years out
technologies
Key sales contributors, graphic illustrative
45 /// Bayer AG /// Investment Case /// April 20223 Growth Drivers
Prostate Cancer is at #2 of the Most Common Cancer Types in Men
Worldwide with Significant Unmet Medical Need
Estimated number of new cases
in 2020, worldwide, males, all ages Characteristics of Prostate Cancer
• Usual onset: age >50 years
Lung
1,435,943 (14.3%)
Other cancers • Diagnostic method: PSA testing, tissue biopsy,
3,938,086 (39.1%)
medical imaging
• Prognosis: long-term survival in early-stage,
Prostate significant higher morbidity in late-stage
1,414,259 (14.1%)
Colorectum
1,065,960 (10.6%)
Oesophagus
418,350 (4.2%)
Stomach
Bladder Liver 719,523 (7.1%)
440,864 (4.4%) 632,320 (6.3%)
Source: International Agency for Research on Cancer, https://gco.iarc.fr/today/online-analysis-table
46 /// Bayer AG /// Investment Case /// April 20223 Growth Drivers
Two Highly Consistent Phase 3 Studies Confirm Nubeqa’s Strong
Clinical Profile in Prostate Cancer Treatment
Efficacy
Study Primary endpoint Selected secondary endpoints Tolerability
ARAMIS Metastasis free survival Overall survival
nmCRPC prolongation by 22.0 months, 31% risk reduction (HR=0.69, p=0.003)
59% risk reduction (HR=0.41, p3 Growth Drivers
We Are Committed to Make Nubeqa Available to a Broad Spectrum
of Prostate Cancer Patients
Patient progression in prostate cancer
~10-15 years
(Neo-)Adjuvant Nonmetastatic Metastatic
early-stage mid-stage late-stage
BCR4 nmCRPC3 mHSPC2 mCRPC1
G7 Drug treated
epidemiology ~145k ~85k ~46k ~75k ~145k
estimates5:
Darolutamide Planned to be started
(Nubeqa) DaSL-HiCap in H2 2022 ARAMIS ARASENS
Phase 3 study 2028 2027 2019 2022
program:
ARANOTE
(ARASEC)*
2025
ARi’s6 moving into earlier segments ARi
1 Metastatic castration resistant prostate cancer 2 Metastatic hormone sensitive prostate cancer 3 Non-metastatic castration resistant prostate cancer 4 Biochemical relapse 5 G7: US, EU5, JP 6 Androgen receptor inhibitor
* Not label generating; supports ARANOTE submission
48 /// Bayer AG /// Investment Case /// April 20223 Growth Drivers
Nubeqa With the Chance to Become a Foundational Drug to Treat
Prostate Cancer – Peak Sales Potential of >€3bn
• Highly efficacious ARi1 Strong launch performance in nmCRPC
• Very consistent set of data from two
Weekly TRx (US)
Efficacy Phase 3 studies
400
• First to show more than 30% risk reduction Sales 2021:
300 ~€220m
of death in nmCRPC and mHSPC
200
100
• Well tolerated safety profile 0
0 Week 120
• Limited potential for drug-interactions
Safety
Planned submissions for mHSPC label extension
• Early data indicate limited blood-brain
barrier penetration
ARASENS primary
endpoint met
• Approved in nmCRPC in the US (2019), Dec Jan Feb Mar Apr May
Europe + Japan (2020) and China (2021)
Lifecycle 2021 2022
Management • Become agent of choice in prostate cancer ARASENS at
ASCO GU
• Combination opportunities
1 Androgen receptor inhibitor
49 /// Bayer AG /// Investment Case /// April 20224 Innovation
Our Innovation Engine is Delivering
2
Committed and experienced
External new leadership team
Innovation
1 3 Advancing leading cell and
Internal Platform gene therapy business
Innovation Companies
World leading science added
1 2 3 through new platforms
Global R&D Collaborations, CGT SMOL
organization in-licensing, M&A
Elinzanetant
Unlocking value for patients in
the highest need areas
50 /// Bayer AG /// Investment Case /// April 20224 Innovation
External Innovation to Accelerate Replenishment of Pipeline and
Broaden Modalities
Selected High-Level Overview
Momentum Significantly Increased
>40 Transactions signed since 2020
• Deals covering the entire spectrum from equity investments (with LEAPS), over licensing agreements to
acquisitions
• Active portfolio management taking internal assets outside (eg. Vincera Pharma)
Strategic Focus
• Venturing into new modalities (Cell & Gene Therapy)
• Broadening the Oncology pipeline (eg. Systems Oncology, Atara)
• Commercial partnerships in China (eg. Hua Medicine)
• Deals in the Digital Space (eg. R&D: Schroedinger, Exscientia, Recursion; Commercial: OneDrop)
• Continued augmentation of core therapeutic areas: (WHC: KaNDy Therapeutics)
• Strengthening the Cardiovascular pipeline (Curadev, Broad Institute)
51 /// Bayer AG /// Investment Case /// April 20224 Innovation
Elinzanetant Addresses High Unmet Needs for Non-hormonal
Treatment of Vasomotor Symptoms in Menopausal Women
Elinzanetant
Typical Vasomotor Symptoms • A first-in-class, non-hormonal, once-daily, oral
During Menopause neurokinin-1,3 receptor antagonist
• Differentiated, double mode of action
• Well tolerated - no serious AEs related to treatment
• Efficacy data compare well with BSC
Sleep Hot Night
Reduction in moderate/severe VMS
disturbance flashes sweats per day from baseline (Phase IIb results)
Week 4 Week 12
Phase III
About 16m women in the U.S. and -2,7 study
another 16m in Europe suffer from -4,7 started in
-6,7 2021, data
menopause symptoms -7,8
(P4 Innovation
Significant Progress Has Been Achieved in Anti-coagulation Therapy
but Medical Need Still Exists
NOACs
Vitamin K Direct
Direct FXa
Heparin Antagonists LMWH Thrombin
Inhibitors
(VKA) Inhibitors
• Heparin and VKAs were the only anticoagulants available for most of the 20th century
• Guidelines now prefer New Oral Anticoagulants (NOACs) over VKAs for many indications
• NOACs are contraindicated in ESRD patients and in patients with mechanical heart valves
• Need remains for anticoagulants with a reduced bleeding risk especially in specific patient populations
Fredenburgh and Weitz, JTH 2020; DOI: 10.1111/jth.15126
53 /// Bayer AG /// Investment Case /// April 20224 Innovation
Bayer Has a World Leading Factor XI(a) Portfolio – Next Class of
Anticoagulation Drug Candidates with Disruptive Potential
Asset Mode of Action Comprehensive Phase IIb Program
Antisense technology prevents FXI expression
• RE-THINc ESRD Data to be presented in 2022
FXI-Antisense
(IONIS-LICA) Reduction of thrombotic events in end-
stage renal disease patients on
Hepatocyte Blood (Plasma) hemodialysis
Antibody binds FXIa to block further interaction and activity
• CONVERT ESRD Data to be presented in 2022
FXIIa / FIIa
FXIa-Antibody (FXIa)
Prevention of thromboembolic events
S-S S-S
(Osocimab) in ESRD patients on hemodialysis who
FXI FXIa
Hepatocyte Blood (Plasma) are at risk for thromboembolic events
Small molecule blocks activity of FXIa
• PACIFIC study program
FXIIa / FIIa
Oral FXIa (FXIa)
S-S S-S
Inhibitor
FXI FXIa
Hepatocyte Blood (Plasma)
Data to be presented at Data to be presented in 2022
ACC on April 3, 2022
54 /// Bayer AG /// Investment Case /// April 20224 Innovation
Hereditary Factor XI Deficiency is Associated with Lower Risk for
Cardiovascular and Venous Thromboembolic Events
Rate of Venous Thromboembolism Rate of Cardiovascular Events
depending on FXI Level depending on FXI Level
Factor XI >50%
Rate of venous thromboembolism
Rate of cardiovascular events
Factor XI >50%
Factor XI 30-50%
Factor XI4 Innovation
Advancing Leading CGT Platform with Strong Clinical Pipeline
Example: Two-pronged approach to deliver transformative
therapies to treat Parkinson’s
Diverse tech platforms and
capabilities
AAV platform (AskBio and
Successful administration
Bayer established)
of first dose of DA011 to a
BlueRock´s iPSC
Parkinson’s disease
CAR-T patient in open-label
Gene-editing (+ Mammoth) Phase 1 clinical study
CDMO business with strong
momentum
Industry leading CGT
clinical pipeline Ongoing recruitment and
evaluation of patients in
7 clinical projects the US for AskBio’s
>15 projects at pre-clinical Phase 1b clinical study to
stage assess safety and Photo: Dr. Viviane Tabar, Chair of the Department of Neurosurgery,
1 Pluripotent stem cell-derived dopaminergic neurons preliminary efficacy Memorial Sloan Kettering Cancer Center
56 /// Bayer AG /// Investment Case /// April 20224 Innovation
Bayer Pharmaceuticals: Overview Development Portfolio (as of March 1, 2022)
Phase I (23) Phase II (14) Phase III (10)
Elimusertib (ATR Inhibitor) Regorafenib* (combi Nivolumab) Darolutamide (AR Inhibitor)
/// Solid tumors (recurrent or metastatic) /// Prostate Cancer (mHSPC) (ARASENS)
Regorafenib* (multi-Kinase Inhibitor)
/// Adjuvant Prostate Cancer (ARAMIS)
Regorafenib* (combi Pembrolizumab)
SLFN12 Complex-Inducer /// Hepatocellular Carcinoma (HCC) Copanlisib (PI3K Inhibitor)
/// Non-Hodgkin Lymphoma (CHRONOS-2)
mEGFR Inhibitor Asundexian (FXIa Inhibitor)
/// Stroke Prevention in Atrial Fibrillation (PACIFIC-AF) Regorafenib* (multi-Kinase Inhibitor)
Pelgifatamab Corixetan (PSMA-Targeted Thorium Conjugate)
/// 2⁰ Stroke Prevention (PACIFIC-STROKE) /// Glioblastoma
HER2-TTC (HER2-Targeted Thorium Conjugate) /// Major Adverse Cardiac Events Prevention (PACIFIC-AMI)
Finerenone (MR Antagonist)
Fesomersen (FXI-LICA) /// Heart Failure (HFmr/pEF) (FINEARTS-HF)
Bapotulimab (ILDR2 fb Antibody)
/// Thrombosis Prevention in ESRD (RE-THINc ESRD) /// Non-diabetic CKD (FIND-CKD)
AhR Inhibitor
Osocimab (anti-FXIa Antibody) Vericiguat (sGC Stimulator)
ATA2271 (Mesothelin CAR-T Cell Therapy) /// Thrombosis Prevention in ESRD (CONVERT) /// Stable Heart Failure (HFrEF) (VICTOR)
Pecavaptan (Dual Vasopressin Receptor Antagonist) Elinzanetant (Neurokinin-1,3 Rec Antagonist)
Congestive Heart Failure Gene Therapy
/// Heart Failure (AVANTI) /// Vasomotor Symptoms (OASIS-1, OASIS-2, OASIS3)
Mosliciguat (sGC Activator) 57 Runcaciguat (sGC Activator) Aflibercept 8mg
Enuvaptan (Vasopressin V1a Receptor Antagonist) /// Chronic Kidney Disease (CKD) (CONCORD) /// Diabetic Macular Edema (DME)
/// Non-prolif. Diabetic Retinopathy (NPDR) (NEON-NPDR) /// Neovasc. Age-rel. Macular Degen. (nAMD) (PULSAR)
sGC Activator 4
Adrenomedullin Pegol (PEG-ADM)
P2X4 Antagonist /// Acute Resp. Distress Syn. (ARDS)
BDKRB1 Receptor Antagonist BDKRB1 Receptor Antagonist
/// Neuropathic Pain
Peboctocogene Camaparvovec (FVIII Gene Therapy)
TASK Channel Blocker
Pompe Disease Gene Therapy /// Obstructive Sleep Apnea (SPRAY-SMART, KOALA)
Parkinson‘s Disease Gene Therapy High Relaxivity Contrast Agent (HRCA)
/// Magnetic Resonance Imaging
Parkinson’s Disease Cell Therapy
sGC Activator 3
ADRA2C Antagonist
Zabedosertib (IRAK4 Inhibitor 1)
IRAK4 Inhibitor 2
* Regorafenib is a Bayer compound developed solely by Bayer. In 2011, Bayer entered into an
agreement with Onyx Pharmaceuticals, Inc. under which Onyx will receive royalty on any future
global net sales of regorafenib in oncology.
57 /// Bayer AG /// Investment Case /// April 2022Science for a Better Life
Winning in
Consumer Health
///////////
Investment Case
April 2022 / Bayer AG
58 /// Bayer AG /// Investment Case /// April 2022Winning in Consumer Health
1 Market & Position
2 Strategy
3 Sustainability
59 /// Bayer AG /// Investment Case /// April 20221 Market & Position
Consumer Health: A Leading Global OTC Player
Sales development EBITDA margin development Sales by region: €5.3bn
% yoy cpa In %, before special items In %, in 2021
FINANCIALS
22,5%
6.5% 22,0% North
34 EMEA
5.2% 20,9% America 39
2.6%
11 16
Asia / Pacific
Latin
2019 2020 2021 2019 2020 2021 America
Sales by categories: €5.3bn Market positions by category1 Key products
In %, in 2021 Rank #1
Dermatology:
PRODUCTS
Pain & Cardio:
Rank #5 Cardiovascular Rank #3
Pain & Cardio Nutritionals
CCSF
Nutritionals
15 1 Rank #4
28
Pain
Allergy, Cough Digestive Health: Allergy & Cold:
20
& Cold
Rank #3
15 21 Allergy
Dermatology
Digestive Health Rank #3 Nutritionals:
Digestive Rank #3
Health Dermatology
1 Source: Net Sales FY2021, TABS Market Share MAT Aug 2021
60 /// Bayer AG /// Investment Case /// April 20222 Strategy
A Multifaceted Plan to Drive Further Growth
AMBITION Grow ahead of the market and increase margins
WHERE
Winning & Balanced Portfolio
TO PLAY
Growth Modern Optimized
HOW focused Innovation Cost & Cash
Marketing & Sales
TO WIN (esp. in powerbrands) (e.g. precision marketing) (with focus on an
agile organization)
OUR
Digital Transformation
ACCELE-
RATORS Sustainability
61 /// Bayer AG /// Investment Case /// April 20222 Strategy: Growth-Focused Capital Allocation
Driving Disproportionate Growth in Attractive Segments and Markets
Strong positions in 7 out of Top 10 OTC markets
Top 5 position
Accelerate growth
in fast-growing and profitable markets
USA CHINA
India South-East
Asia
62 /// Bayer AG /// Investment Case /// April 20222 Strategy: Growth-Focused Innovation
Accelerating Growth from Innovation
Iconic Global and Local Brands Built over Decades
1898 1930 1934 1940
1943 1950 1983 1992
Note: xx = Year of brand launch
63 /// Bayer AG /// Investment Case /// April 20222 Strategy: Modernized Marketing & Sales
Modernizing Our Brand Building and Sales Capabilities
Brands
with Purpose
From Mass to
Precision Marketing % Precision 25% 58% 80%
marketing1
2018 2021 2024 - Ambition
Accelerating
E-commerce 3% 10% 15%+
% Net Sales2
2018 2021 2024 - Ambition
1 Percentage of digital media which is data-driven precision marketing
2 Percentage of net sales which is through e-commerce channels
64 /// Bayer AG /// Investment Case /// April 20223 Sustainability
Taking Bold Steps on Sustainability
Expand access to everyday health for
2030 Goal 100 million underserved consumers
Societal Environmental
Health Literacy Accessible Products Carbon Neutral Production Sustainable Products
Partnerships & brand purpose Affordable formats, innovations, CO2 reduction: Energy efficiency Sustainable packaging
activations for underserved and go-to-market (GTM) models and renewable energy projects
Vitamin Angels, Kirk Humanitarian Accessible SKUs & relevant GTMs Removal of ozone depleting liquids Baselining of environmental impact
from HVAC plants of packaging & finding alternatives
65 /// Bayer AG /// Investment Case /// April 2022Science for a Better Life
Sustainability @Bayer
///////////
Investment Case
April 2022 / Bayer AG
66 /// Bayer AG /// Investment Case /// April 2022ESG Overview
Group
Sustainability is Integral to Our Values, Strategy and Operations
We intend to create bold impact and generate sustainable business opportunities
Pharmaceuticals Consumer Health Crop Science
Megatrends Aging Population Growing Population Pressure on Ecosystems
Preserve and Secure sufficient Use natural resources more
Societal Needs restore health supply of quality food efficiently and responsibly
Our Vision: Health for all, hunger for none
Impact
Help more people Decrease ecological
thrive footprint
Sustainable
Long-term business growth through sustainable innovation
Growth
67 /// Bayer AG /// Investment Case /// April 2022ESG
Sustainable Innovation as Foundation for Business Opportunities
Co-Shaping the We are among the companies that help to shape the ongoing bio-revolution. Our
extensive knowledge of human and plant science, supported by our expertise in regulatory
Bio-Revolution processes and a global footprint ultimately bring innovations from labs to market
Sustainable We develop solutions with improved sustainability profiles: seeds/traits and related
farming practices (e.g. short stature corn, direct seeded rice), crop protection products
Solutions in & irrigation systems (e.g. lower environmental impact), digital farming and precision
Agriculture agriculture, climate-smart practices
Breakthrough We foster innovation and portfolio extension in important therapeutic areas with an
Technologies in increasingly strong setup in the cell & gene sphere and the potential to meet
undruggable targets
Pharmaceuticals
Better Access to
Our access targets bear chances of meaningful inclusive growth with recipients as potential
Health & High- future market participants while addressing global megatrends in health and nutrition
Quality Nutrition
68 /// Bayer AG /// Investment Case /// April 2022 Find more info here: https://www.bayer.com/en/sustainability/esg-topicsESG Overview
Group
Ambitious Measurable Targets for Sustainable Development
Our 2030 Targets are in line with UN SDGs and the Science Based Targets Initiative
Decrease ECOLOGICAL footprint Help more PEOPLE thrive
Climate neutrality at own sites + Support 100m smallholder farmers in LMIC3
reduced emissions in our supply chain
Provide 100m women in LMIC3 with
42% reduction target1 for Scope 1 & 2 access to modern contraception
500m € CapEx for emission reduction U.N. Sustainable
Development Expand access to self-care for 100m
50m-200m € OpEx for offsetting projects
Goals within Our people in underserved4 communities
12.3% reduction target2 for Scope 3 Focus Areas
Net Zero emission target until 2050 in Gender parity at all leadership levels &
line with Paris Agreement (Scope 1, 2 & 3) targets for further diversity dimensions
CS: -30% greenhouse gas emissions produced
PH: Increase the availability and affordability of
by key crops in the main regions we serve and
our products in LMIC via equitable pricing and
-30% environmental impact of crop protection
patient affordability programs, with the ambition of
CH: Sustainable production and transition to reaching an additional pool of 100m patients
circular options (reduce, recycle, reuse, replace)
1 By 2029 from a 2019 base year is in line with limiting global warming to 1.5 C° 3 LMIC:low and middle income countries - all countries included in the World Bank list as per 1 July 2019
69 /// Bayer AG /// Investment Case /// April 2022
2 By 2029 from a 2019 base year is in line with limiting global warming to below 2 C° 4 Underserved: economically or medically
For more info here: https://www.bayer.com/en/sustainability/targetsYou can also read
