Investor Factsheet

“Health for all, hunger for none” – putting an end to hunger and helping everyone lead a healthy life, while at the same protecting ecosystems. That’s what we aspire to achieve, guided by our corporate purpose “Science for a better life.” The major issues of our time can only be addressed if we work together. Our campaigns #voranbringen in Germany and “This is why we science” in the United States underscore our approach. We are a life science company and a global leader in health care and nutrition. Our innovative products support efforts to overcome the major challenges presented by a growing and aging global population. We help prevent, alleviate and treat diseases. We also aim to ensure the world has a reliable supply of high-quality  food, feed and plant-based raw materials. As part of this endeavor, the responsible use of natural resources is always a top priority.
We aim to enhance our company’s earning power and create value for customers, patients, shareholders, employees and society. Growth and sustainability are integral parts of our strategy, guided by our corporate values of Leadership, Integrity, Flexibility and Efficiency, or LIFE for short. This culture ensures a common identity throughout the Bayer Group.

  

Published on February 27, 2020 in the Annual Report 2019:

Key Data Bayer Group 2018 2019
€ million € million
Sales 36,742 43,545
EBITDA1 9,695 9,554
EBITDA before special items1 8,969 11,503
EBITDA margin before special items1 24.4% 26.4%
EBIT1 3,454 4,189
EBIT before special items1 6,013 7,007
Income before income taxes 1,886 2,880
Net income (from continuing and discontinued operations) 1,695 4,091
Earnings per share (from continuing and discontinued operations) (€)1 1.80 4.17
Core earnings per share (from continuing operations) (€)1 5.60 6.40
Net cash provided by operating activities (from continuing and discontinued operations) 7,917 8,207
Free cash flow (€) 4,652 4,214
Net financial debt 35,679 34,068
Capital expenditures (as per segment table) 2,368 2,920

Bayer AG 2018 2019
Total dividend payment 2,611 2,751
Dividend per share (€) 2.80 2.80

Innovation 2018 2019
Research and development expenses 5,105 5,342
Ratio of R&D expenses2 to sales – Crop Science (%) 13.0 11.7
Ratio of R&D expenses2 to sales – Pharmaceuticals (%) 15.5 15.4
Ratio of R&D expenses2 to sales – Consumer Health (%) 4.1 4.2
Employees in research and development 16,835 16,006

Employees 2018 2019
Number of employees3 (Dec. 31) 107,894 103,824
Personnel expenses (including pension expenses) (€ million) 10,778 11,788
Proportion of employees with health insurance (%) 98 98
Fluctuation (voluntary / total) (%) 5.5 / 14.8 6.6 / 15.0
Hours of vocational and ongoing training per employee 17.1 22.6

figures restated; proportion of employees with health insurance: 2018 figures as last reported
1 For definitions of the indicators see A 2.3.
2 R&D expenses before special items
3 Employees calculated as full-time equivalents (FTEs)
4 In 2019, we changed over to the reporting criteria of the International Council of Chemical Associations (ICCA) and now report the discharge of chemical substances or utilities as Process Safety Incidents (PSI). Previously we reported according to the criteria of the European Chemical Association (CEFIC).
5 Quotient of total energy consumption and external sales
6 Direct emissions from power plants, waste incinerators and production plants and indirect emissions from external supplies of electricity, steam and refrigeration (according to the market-based method)

  

  

Current Event

April 27, 2020

Q1 2020 Quarterly Statement

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Current Investor News

Bayer Stock

The capital stock of Bayer AG, amounting to Euro 2,515,005,649.92 is divided into 982,424,082 no-par registered shares. The capital stock underlying the no-par value registered shares is evidenced by permanent global certificates deposited with Clearstream Banking AG, Frankfurt am Main, Germany. The Company’s shareholders have ownership in these certificates in proportion to their respective holdings.The current value of one share - the share price - is determined by the company's total value on the stock market (market capitalization) and the number of shares in circulation.
 

Security Identification No.
ISINDE000BAY0017
WKNBAY001
CUSIP072730302
Bayer Code
ReutersXetra ®BAYGn.DE
Frankfurter WertpapierbörseBAYGn.F
BloombergXetra ®BAYN GY
Frankfurter WertpapierbörseBAYN GF

Bayer has a significant weighting in virtually all the major stock indices in line with its high market capitalization and share turnover.

Bayer stock is listed on all the German stock exchanges.

Paying and exchange agent for the shares of Bayer AG is Deutsche Bank AG (Taunusanlage 12, 60325 Frankfurt am Main, Germany).

Information about the dividend for fiscal 2019


In 2019, we once again met our financial targets and want our stockholders to share in the company’s success accordingly. The Board of Management and the Supervisory Board will therefore propose an attractive dividend of €2.80 (previous year: €2.80) to the Annual Stockholders’ Meeting. This corresponds to 43.8% of our core earnings per share (core EPS) from continuing operations of €6.40 for 2019. The payout ratio for 2019 is again above our target range of 30% to 40% of core EPS. This illustrates the importance we attach to paying a stable dividend.
For the medium term, we aim to fall back into the target range and further increase our dividend.
Based on the Bayer stock price of €72.81 at the end of 2019, the dividend yield is 3.8%.

 

Stock ownership by region

Our ownership structure is very international, thus also reflecting our company’s global presence. Almost one third (33.2%) of our stock is attributable to investors in North America. Just under one fifth (19.9%) is held by stockholders in Germany. Another significant group of investors is based in the United Kingdom and Ireland; they hold 15.6% of Bayer stock.

  

Credit Rating

Taking the acquisition of Monsanto into account, the rating agencies have confirmed the following ratings: 

Rating agencyLong-term ratingShort-term ratingOutlook
S&P Global RatingsBBBA2stable
Moody'sBaa1P2negative
Fitch RatingsBBB+F2negative

Future Perspectives

(published on February 27, 2020 in the Annual Report 2019)

Economic Outlook

Corporate Outlook
The following forecast is based on the current business development and our internal planning. It also proceeds from the assumption that our Animal Health business will transfer to the acquirer effective July 1, 2020, and that we will receive the purchase price on that date in cash and Elanco shares as agreed.

To enhance the comparability of operating performance, the forecasts are adjusted for currency effects1. A 1% appreciation (depreciation) of the euro against all other currencies would decrease (increase) sales on an annual basis by some €350 million and EBITDA before special items by about €100 million.

We adjusted our value flows as of January 1, 2020 (for further details see A 1.1.2 “Corporate Structure”), which has an impact on the divisions’ EBITDA before special items. If these value flows had already applied in 2019, this key indicator would have been as follows:

Pro-forma EBITDA Before Special Items After Value Flow Changes

in Mio. €Crop SciencePharmaceuticalsConsumer Health
EBITDA before special items24,7965,9751,090
Value flow changes(82)(114)51
Pro-forma EBITDA before special items after value flow changes4,7145,8611,141

1 Using the average monthly exchange rates from 2019 (see Annual Report 2019, table B 4/1)
2 For definition see Annual Report 2019, A 2.3 “Alternative Performance Measures Used by the Bayer Group.”

 

For 2020, we expect currency-adjusted sales from continuing operations to amount to around €44 billion to €45 billion. This corresponds to an increase of about 3% to 4% on a currency- and portfolio-adjusted basis. We aim to increase the EBITDA margin before special items to around 28% on a currency-adjusted basis. Based on the aforementioned sales figure, this would correspond to EBITDA before special items of €12.3 billion to €12.6 billion on a currency-adjusted basis. We plan to raise core earnings per share to between €7.00 and €7.20 on a currencyadjusted basis.

Forecast for 2020

2019 figures 2020 forecast
€ billion Fx & p adj. Change (%) € billion

Fx & p adj. Change (%)

Sales1 43.5 + 3.5 44 to 45+ 3 to 4
Crop Science 19.8 + 1.4 ~+ 4

Pharmaceuticals

18.0 + 5.6 + 3 to 4

Consumer Health

5.5 + 2.6 + 2 to 3
Margin (%) Margin (%)
EBITDA before special items1 (pro forma) 11.5 26.4 ~28
Crop Science 4.8 (4.7) 24.2 (23.8) ~26

Pharmaceuticals

6.0 (5.9) 33.3 (32.6) ~33

Consumer Health

1.1 (1.1) 20.0 (20.9) 22 to 23
Financial result (core)2 (1.6) ~( 1.5)
Tax rate (core)3 22.5% ~23%
Free cash flow1 4.2 ~5
Net financial debt1 34.1 ~27
Special items in EBITDA (1.9) ~( 0.9)
Core EPS1 6.40 7.00 to 7.20

Fx & p adj. = currency- and portfolio-adjusted
1 For definition see Annual Report 2019, A 2.3 “Alternative Performance Measures Used by the Bayer Group.”
2 Financial result before special items
3 (Income taxes + special items in income taxes + tax effects on adjustments) / (core EBIT + financial result + special items in financial result)

 

We plan to take total special charges of about €0.9 billion (currency-adjusted) in 2020, of which we expect approximately €0.7 billion to be spent on restructuring.

Potential estimation risks regarding special charges in connection with litigations are referenced in A 3.2 Opportunity and Risk Report.

  

Forward-Looking Statements

This fact sheet 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 www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Bayer Investor Relations

Bayer AG
Building W11
51368 Leverkusen
Germany
Phone: +49 214 30 72704
E-Mail: ir@bayer.com
Internet: www.investor.bayer.com 

Dr. Jürgen Beunink
Senior Manager
juergen.beunink@bayer.com

Laura Meyer
Senior Manager (U.S.)
laura.meyer@bayer.com

Oliver Maier
Investor Relations Lead
oliver.maier@bayer.com

 

  

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