Disclaimer
This presentation may contain forward-looking statements based on currentassumptions and forecasts made by Bayer management.
Various known and unknown risks, uncertainties and other factors could lead tomaterial 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 areavailable on the Bayer website at http://www.bayer.com.
The company assumes no liability whatsoever to update these forward-lookingstatements or to conform them to future events or developments.
• Q2 2016 Investor Conference Call • Werner BaumannPage 2
This communication relates to a proposed offer by Bayer Aktiengesellschaft or its subsidiaries (“Bayer”), to purchase all of the outstanding shares of common stock, par value $0.01 per share, of Monsanto Company, a Delaware corporation (“Monsanto”). This communication is neither an offer to purchase nor a solicitation of an offer to sell shares of Monsanto. No tender offer for the shares of Monsanto has commenced at this time. At the time a tender offer for the shares of Monsanto is commenced, Bayer will file tender offer materials (including an Offer to Purchase, a related Letter of Transmittal and certain other offer documents) with the Securities and Exchange Commission (the “SEC”) with respect to the tender offer. Any definitive tender offer documents will be mailed to the stockholders of Monsanto. STOCKHOLDERS OF MONSANTO ARE URGED TO READ THE RELEVANT TENDER OFFER MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TENDER OFFER THAT STOCKHOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING THE TENDER OF THEIR SHARES. Stockholders of Monsanto will be able to obtain free copies of these documents (if and when available) and other documents filed by Bayer with the SEC through the website maintained by the SEC at www.sec.gov.
Additional Information
• Q2 2016 Investor Conference Call • Werner BaumannPage 3
Page 4
Q2 2016 – Highlights
Group sales and earnings raised
Pharma continued strong growth trend
Consumer Health increased sales
Crop Science business held steady in continuingly difficult market environment
All-cash offer to acquire Monsanto
Agreement to sell the Consumer business of Environmental Science
Positive phase III data for Regorafenib in unresectable liver cancer
Group outlook for 2016 raised
• Q2 2016 Investor Conference Call • Werner Baumann
Page 5
+17%
2,1381,823
+2%
11,83312,003
+6%
3,0542,888
+4%
2.071.99
Q2’16Q2’15 Q2’16Q2’15 Q2’16Q2’15 Q2’16Q2’15
Q2 2016 –Sales and Earnings Improved
• Q2 2016 Investor Conference Call • Werner Baumann
EBITin € million
EBITDAbefore special itemsin € million
Core EPScont. operationsin €
Salesin € million% currency & portfolio adj.
2015 figures restated
Q2 2016 –Cash Flow And Net Debt Development
• Q2 2016 Investor Conference Call • Werner BaumannPage 6
+€1.5bn
March 31, 2016 June 30, 2016
16.3
Cash Flow in € million, ∆% yoy Fx adj.
Net Debtin € billion
17.8
*including net cash flow from discontinued operations of minus €10 million
GCF oFCF*
2,366
CapEx
589 1,393
∆y-o-y +9% +3%
NCF*
1,982
+1% -2%
2015 figures restated
Q2 2016 – Continued Strong Growth Trend at Pharma Driven by Launch Products
Page 7 • Q2 2016 Investor Conference Call • Werner Baumann
Q2‘16 sales in € million, ∆% yoy, Fx adj.
703 +30%
418 +41%
81 +27%
67 -25%
63 +45%
Sum 1,332 +29%
Launch ProductsSalesin € million; ∆% yoy, Fx & portfolio adj.
EBITDA
3,8904,104 +8%
1,1931,352
Q2‘15
+13%
Q2‘16Q2‘15Q2‘16
before special items, in € million; ∆% yoy
2015 figures restated
240* +13%
178 +11%
110 -5%
95 +21%
Sum 623 +10%
Q2 2016 – Consumer Health with Positive Sales Development
• Q2 2016 Investor Conference Call • Werner BaumannPage 8*incl. Aspirin Cardio
Salesin € million; ∆% yoy, Fx & portfolio adj.
1,590 1,553 +4%362
328 -9%
Q2‘15 Q2‘16 Q2‘16Q2‘15
Q2‘16 sales in € million, ∆% yoy, Fx adj. Top Products EBITDA
before special items, in € million; ∆% yoy
2015 figures restated
-8%
Q1'15 Q1'16
Q2 2016 – Crop Science Steady Despite Ongoing Weak Market Environment
Page 9 • Q2 2016 Investor Conference Call • Werner Baumann
Europe 808 +1%
North America 812 -3%
Asia / Pacific 455 +8%
LatAm / Africa / Middle East 443 0%
Environm.ScienceSeeds
SeedGrowth
Fungicides
Insecticides
Herbicides 769
155
302
840
144
308
-1%
-5%
-6%
+6%
-12%
+4%
2,518
722663
Q2‘15 Q2‘16
787
164
360
827
163
335
2,6360%
Salesin € million; ∆% yoy, Fx & portfolio adj. Q2‘16 sales in € million, ∆% yoy, Fx adj.
Regions EBITDAbefore special items, in € million; ∆% yoy
Q2‘16Q2‘15
2015 figures restated
157 -4%
67 +45%
32 +9%
24 -6%
Sum 280 +6%
Q2 2016 – Animal Health Posting Sales Growth
• Q2 2016 Investor Conference Call • Werner BaumannPage 10
Salesin € million; ∆% yoy, Fx & portfolio adj.
428 426 +4%
Q2‘15 Q2‘16
120
100 -17%
Q2‘16 sales in € million, ∆% yoy, Fx adj. Top Products EBITDA
before special items, in € million; ∆% yoy
Q2‘16Q2‘15
FY 2016 Group Outlook Raised
Page 11
,
Sales Group €46.1bn Low-single-digit % increase to €46-47bn
Life Sciences €34.1bn Mid-single-digit % increase to ~€35bn
Adj. EBITDA
Group €10.3bn High-single-digit % increase
Life Sciences €8.6bn Mid- to high-single-digit % increase
Core EPS €6.82 Mid- to high-single-digit % increase
• Q2 2016 Investor Conference Call • Werner Baumann Assuming end Q2 2016 Fx rates (USD 1.11)Outlook depends on specific planning assumptions as detailed in the Annual Report
Sales ∆ % yoy Fx and portfolio adj., EBITDA before special itemsContinuing operations
2015 2016update July
2015 figures restated
Pharma High-single-digit % increase to > €16bnLaunch products toward €5.5bn
Low-teens % increaseMargin improvement
ConsumerHealth
Low- to mid-single-digit % increase toabout €6bn At prior-year level
Crop Science At prior-year level (about €10bn) Low-single-digit % decline
Animal Health Low- to mid-single-digit % increase Low- to mid-single-digit % increase
Life Sciences Mid-single-digit % increase to about €35bn Mid- to high-single-digit % increase
FY 2016 – Guidance by Segment
Page 12*Assuming end Q2 2016 Fx rates (USD 1.11)
Sales ∆ Fx & portf. adjusted, EBITDA before special items, continuing operationsOutlook depends on specific planning assumptions outlined in the Annual Report
•
Sales * Adj. EBITDA *
• Q2 2016 Investor Conference Call • Werner Baumann
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