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Bayer is a Life Science company with a more than 150-year history and core competencies in the areas of health care and agriculture. With our innovative products, we are contributing to finding solutions to some of the major challenges of our time. A growing and aging world population requires an adequate supply of food and improved medical care. Our research and development activities are therefore focused on improving people’s quality of life by preventing, alleviating and treating diseases. At the same time, we are making an important contribution to providing a reliable supply of high-quality food, feed and plant-based raw materials. Our understanding of the biochemical processes in living organisms helps us address these demanding challenges.
Our goal is to achieve and maintain leadership positions in our markets. In this way we create value for our customers, stockholders and employees, at the same time strengthening the company’s earning power. We are committed to operating sustainably and addressing our social and ethical responsibilities. We also respect the interests of all our stakeholders. Employees with a passion for innovation enjoy excellent development opportunities at Bayer.
All this goes to make up our mission – Bayer: Science for a Better Life.
Published on February 22, 2017 in the Annual Report 2016:
|€ million||€ million||in %|
|EBITDA before special items1||10,256||11,302||+10.2|
|EBITDA margin before special items1||22.3 %||24.2 %|
|EBIT before special items1||7,060||8,130||+15.2|
|Income before income taxes||5,236||5,887||+12.4|
|Net income (from continuing and discontinued operations)||4,110||4,531||+10.2|
|Earnings per share (from continuing and discontinued operations) (€)1||4.97||5.44||+9.5|
|Core earnings per share (from continuing operations) (€)1||6.82||7.32||+7.3|
|Net cash provided by operating activities (from continuing and discontinued operations)||6,890||9,089||+31.9|
|Net financial debt||17,449||11,778||-32.5|
|Capital expenditures as per segment table||2,511||2,578||+2.7|
|€ million||€ million||in %|
|Total dividend payment||2,067||2,233||+8.0|
|Dividend per share (€)||2.50||2.70||+8.0|
|Number of employees2 (Dec. 31)||116,600||115,200||-1.2|
|Personnel expenses (including pension expenses) (€ million)||11,176||11,357||+1.6|
|Proportion of women in senior management (%)||28||29|
|Proportion of employees with health insurance (%)||96||98|
|Fluctuation (voluntary / total) (%)||5.0 / 13.9||4.6 / 12.3|
|Hours of vocational and ongoing training per employee||20.0||22.1||+10.5|
2015 figures restated; figures for 2012–2014 as last reported
1 For definitions of the indicators see Chapter “Alternative Performance Measures Used by the Bayer Group.”
2 Employees calculated as full-time equivalents (FTEs)
2016 Key Data by Segment
Current Investor News
The capital stock of Bayer AG, amounting to Euro 2,116,986,388.48, is divided into 826,947,808 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.|
|Bloomberg||Xetra ®||BAYN GY|
|Frankfurter Wertpapierbörse||BAYN 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.
Information about the dividend for fiscal 2016
Conforming to the proposal of the Board of Management and the Supervisory Board, the Annual Stockholders’ Meeting on April 28, 2017 passed the resolution to pay a dividend for fiscal 2016 of EUR 2.70 per share. The resulting payout ratio of 37 percent calculated on core earnings per share (see Annual Report 2016, Chapter 2.2.1 of the Combined Management Report) is within our target corridor of 30 percent to 40 percent.
The dividend yield calculated on the share price of €99.13 at year end 2016 amounts to 2.7 percent and the total dividend payment to €2,233 million.
Stock ownership by region
Our ownership structure shows the international distribution of our capital stock. The highest proportion of our outstanding shares, almost 29 percent, is held by investors in the United States and Canada, followed by Germany with 22 percent. From a regional perspective, Bayer has a stable ownership structure that has altered only slightly in recent years.
Ownership Structure by Country
Bayer is currently rated as follows:
|Rating agency||Long-term rating||Short-term rating|
|S&P Global Ratings||A-||A-2|
Recently, the rating agencies took the following rating actions:
May 20, 2016: S&P Global Ratings placed 'A-/A-2' ratings for Bayer on CreditWatch with negative outlook.
June 22, 2017: S&P Global Ratings affirms ‘A-2’ short-term rating, removing its CreditWatch for it.
May 24, 2016: Moody’s placed Bayer’s A3/P-2 ratings under review for downgrade.
(published on October 26, 2017 in the Interim Report Third Quarter 2017)
Following the signing of the Covestro control termination agreement in September 2017 and the sale of additional shares, Covestro will be presented as a discontinued operation and is thus, as of the fourth quarter of 2017, treated only as an equity method investment in the forecast (see also Key Events). The Bayer Group’s continuing operations thus reflect the values previously referred to under Life Sciences.
To illustrate the differences between the forecasts based on the former and new Group structure, the previous outlook and the updated version are presented alongside each other in the following table:
Reconciliation of Group Outlook to Reflect Change in Structure
|Previous forecast incl. Covestro||Reconciliation to new forecast excl. Covestro|
|2016 sales||€46,769 million||€34,943 million|
|anticipated 2017 sales||more than €49 billion||€35 – 36 billion|
|Increase in sales (Fx. & portfolio adj.)||mid-single-digit percentage increase||low-single-digit-percentage increase|
|2016 EBITDA before special items||€11,302 million||€9,318 million|
|anticipated 2017 EBITDA before special items||high-single-digit percentage increase||Slightly above the level of the previous year|
|2016 core EPS||€7.32||€6.67|
|anticipated 2017 core EPS||low- to mid-single-digit-percentage increase||low-single-digit percentage decrease|
|Capital expenditures for property, plant and equipment||€2.5 billion||€1.7 billion|
|Research and development expenses||€4.8 billion||€4.5 billion|
|Special items||€0.5 billion||€0.6 billion|
|Depreciation and amortization||€2.9 billion||€2.4 billion|
|Financial result||minus €1.4 billion||minus €1.4 billion|
|Net financial debt||around €7 billion||around €4 billion|
|Effective tax rate||around 23%||around 22%|
We have adjusted the exchange rates relevant to our forecast to reflect current developments. For the fourth quarter of 2017 we are now using the exchange rates prevailing on September 30, 2017, including a rate of US$1.18 (previously: US$1.14) to the euro. A 1% appreciation (depreciation) of the euro against all other currencies would now decrease (increase) sales on an annual basis by €240 million and EBITDA before special items by €70 million.
Based on these changes, we have reconciled our outlook for full year 2017 as follows:
For the Bayer Group, we are still planning sales of €35 billion to €36 billion. This continues to correspond to a low-single-digit percentage increase on a currency- and portfolio-adjusted basis. We continue to expect EBITDA before special items to come in slightly above the level of the previous year. As regards core earnings per share from continuing operations, we now expect a low-single-digit percentage decrease on the basis of the values that were adjusted for Covestro effects for the current year and previous year. This is due primarily to the difference in the number of shares, which grew significantly in 2017 as a result of the mandatory convertible notes issued in November 2016. Without this effect, core earnings per share would improve by a low-single-digit percentage.
Sales and Earnings Forecast by Segment
We now expect sales at Pharmaceuticals of approximately €17 billion (previously: more than €17 billion). This continues to correspond to a mid-single-digit percentage increase on a currency- and portfolio-adjusted basis. As before, we plan to raise sales of our key growth products to more than €6 billion. We still expect a high-single-digit percentage increase in EBITDA before special items. There is no change in our expectation of further improving the EBITDA margin before special items.
For Consumer Health we continue to expect sales for the full year of about €6 billion. This still corresponds to the prior-year level on a currency- and portfolio-adjusted basis. As before, we expect EBITDA before special items to decline by a high-single-digit percentage.
For Crop Science we are still anticipating sales of below €10 billion. This corresponds to a low-single-digit-percentage decline on a currency- and portfolio-adjusted basis. Meanwhile, we continue to expect EBITDA before special items to decline by a mid-teens percentage.
For Animal Health, we still anticipate a currency- and portfolio-adjusted increase in sales by a low- to mid-single-digit percentage. As before, we plan to improve EBITDA before special items by a high-single-digit percentage.
Reconciliation: We continue to expect sales of around €1 billion in 2017. We still plan EBITDA before special items in the region of minus €0.2 billion.
Development of further key data
In 2017, we now expect to take special charges for continuing operations in EBITDA in the region of €0.6 billion (previously: €0.5 billion). Most of this amount is accounted for by costs arising in connection with the agreed acquisition of Monsanto, restructuring and efficiency improvement measures, and provisions for legal risks. We aim to increase research and development spending to €4.5 billion. Capital expenditures will amount to about €1.7 billion for property, plant and equipment and around €0.4 billion for intangible assets. Depreciation and amortization are estimated at about €2.4 billion, including €1.4 billion in amortization of intangible assets. We also predict a financial result of around minus €1.4 billion. The effective tax rate is likely to be about 22%. Excluding capital and portfolio measures, net financial debt is targeted to be around €4 billion at the end of 2017 (previously: around €7 billion).
We refer readers to our Annual Report 2016 for information on the outlook for Bayer AG. Beyond that, we expect a significant improvement to our financial result from the sale of the Covestro shares.
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|
Head of Investor Relations
|Dr. Jürgen Beunink|
|Peter Dahlhoff |