Forward-Looking Statements 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.
Partnering at Bayer February 4, 2015 Kemal Malik, Member of the Board of Management, Bayer AG
The New Bayer A Pure Life Science Player Sales Split and Market Positions 2013 By Subgroup Total 40.2bn sales* HealthCare 18.9bn sales Pharmaceuticals 11.2bn, leading positions in core indications Consumer Health 7.7bn, OTC #2, blood glucose meters #3, Animal Health #5, contrast media #1 MaterialScience 11.2bn sales CropScience 8.8bn sales Chemical and biological Crop Protection #2, Seeds & Traits #7, Environmental Science #2 Page 3 Kemal Malik, high-tech partnering conference, February 2015 * Including reconciliation
Life Science @ Bayer: Influencing a biological System along the Chain-of-Life Page 4 Kemal Malik, high-tech partnering conference, February 2015
Facts on Bayer HealthCare 2014 R&D budget EUR 2.28 billion Employees working in R&D* 8122 Patents in 2013 233 Cooperation projects in 2013 644 Page 5 Kemal Malik, high-tech partnering conference, February 2015 * Headcount, as of September 2014
One of the Fastest-Growing Global Pharma Companies Pharma Sales Plans for continued growth billion; Δ% Fx & portfolio adj. +4% +1% 10.8 10.0 9.9 +9% 11.2 +12% 8.8 Maximize the value of launch products Drive commercial excellence in marketing and sales Advance early and mid-stage pipeline Achieve Phase III readiness for 5 projects in 2015 Explore opportunities for partnerships, open innovation and bolt-on acquisitions 2010 2011 2012 2013 Q1-3 2014 Page 6 Kemal Malik, high-tech partnering conference, February 2015
Pharma Launch Products Drive Growth Combined Peak Sales Potential of 7.5bn Collective Sales billion Q1-Q3 2014 Individual Sales million ~2.8 1.5 1,163 Total 2.1bn 58 128 161 540 0.4 0.1 0.1 2010 2011 2012 2013 2014e Page 7 Kemal Malik, high-tech partnering conference, February 2015
Facts on Bayer CropScience 2014 R&D budget EUR 950 million Employees working in R&D* 5142 Patents in 2013** 263 Cooperation projects in 2013 221 Page 8 Kemal Malik, high-tech partnering conference, February 2015 * Headcount, as of September 2014 ** Plus 188 plant variety protection applications
One of the fastest growing Crop Science companies CropScience Sales Plans for continued growth billion; Δ% Fx & portfolio adj. Drive new product growth, invest in life-cycle management 6.8 +9% 7.3 +12% 8.4 +9% 8.8 +12% 7.3 Drive commercial excellence in marketing and sales Strengthen portfolio through focused and integrated crop solutions Extend seeds portfolio by building business in soybeans and wheat 2010 2011 2012 2013 Q1-3 2014 Page 9 Kemal Malik, high-tech partnering conference, February 2015
New Products Drive Growth at Crop Protection Sales of New Crop Protection Products by Segment (2013) billion; new products launched since 2006; Δ% y-o-y, fx adj. ~2.6 449 Insecticides 224 Fungicides +33% 1.5 ~1.8 Total 1.5bn 1.1 513 Herbicides 325 Seed Growth 2012 2013 2014e 2016e New products generated 82% of absolute sales growth at Crop Protection Page 10 Kemal Malik, high-tech partnering conference, February 2015
High Confidence in R&D of Life Science businesses R&D Budget 2014 R&D Employees 2014 Achievements billion 25 successful Phase III clinical trials at Pharma since 2010 0.4 Consumer Health 61% Health Care Launched 30 new active ingredients between 2000 and 2013 in CropScience Initiated R&D projects that leverage synergies between human, animal and plant health 1.9 Pharma 0.9 Crop Science 39% Crop Science Strengthened brands through multiple line or product introductions in Consumer Care Total 3.2bn* More than 13.000 people working in R&D Expect R&D-to-sales ratio to increase Page 11 Kemal Malik, high-tech partnering conference, February 2015 * Plus 0.3bn for Bayer MaterialScience and Reconciliation
Bayer focusses on Innovation in therapeutic areas with high unmet medical need Cardiology Hematology Oncology Gynecological Therapy Pulmonary Hypertension / Heart Failure Thrombosis / Acute Coronary Syndrome Cardiorenal Syndrome (CRS) Hemophilia / Rare Bleeding Disorders / Acute Bleeding Hemoglobinopathies Hematopoiesis Cell Cycle/Survival Signaling Immunotherapy/Antibody- Drug Conjugates Tumor Metabolism/ Hypoxia Chromatin Modulation/ OncoGenomics Endometriosis Uterine Fibroids Common Mechanism Research & Other Areas Leveraging the full potential of development compounds Ophthalmology Inflammation LCM Fertility Control / Menopause-Management Magnetic Resonance and Computed Tomography Contrast Media Research Page 12 Kemal Malik, high-tech partnering conference, February 2015
Leveraging our exceptional R&D Position to deliver next Generation Products Accelerated discovery of target genes Trait Research Improved selection and classification of lines Breeding Improved quality of candidate selection and lead discovery Chemical Crop Protection Accelerated discovery of leads Biological Crop Protection Page 13 Kemal Malik, high-tech partnering conference, February 2015
Tailored partnering models to promote novel treatment options and generate added value Grants4platform Innovative web-based Open Innovation platform to get access to innovative drug targets New company formation Build to buy innovative model for company formation Strategic partnerships with leading institutions Novel type of risk and reward sharing strategic alliance to develop new cancer treatments together with the Broad Institute CoLaborator New Incubator space at Mission Bay and in Berlin to promote collaborations with innovative start-ups Venture Investments Venture Capital Investments to foster early innovation in Life Sciences Page 14 Kemal Malik, high-tech partnering conference, February 2015
Bayer is collaborating with leading academic Institutions & Companies worldwide Page 15 Kemal Malik, high-tech partnering conference, February 2015
The Bayer open innovation platforms give us access to ideas from the scientific community Bayer HealthCare defines challenge Grants4Targets http://www.grants4targets.com Start 2009 (12 rounds) 1198 proposals 164 accepted via Internet Grants4Leads http://www.grants4leads.com Start 2013 (2 rounds) 20 proposals 3 grants provided comes up with ideas and solutions Scientific Community Grants4Apps http://www.grants4apps.com Start 2013 (3 rounds) 218 proposals 25 accepted Page 16 Kemal Malik, high-tech partnering conference, February 2015
CoLaborator facilities in San Francisco and in Berlin benefit both startups and Bayer Assigned lab and office space on Bayer HealthCare s campus at San Francisco (Mission Bay) and in Berlin for start-up companies A new home for startups in life sciences with ideas related to Bayer HealthCare s R&D strategy Proximity to Bayer HealthCare research and the vicinity to surrounding science and startup community create eco-systems for innovative ideas Page 17 Kemal Malik, high-tech partnering conference, February 2015
The CoLaborator: Early Results are Demonstrating success on the Concept San Francisco (2,5 years) Berlin (8 month) Element Science, Inc. Partnership is open : SF companies have received follow on collaborations and VC financing from outside parties. Collaborations have launched between Bayer and the tenant companies at both locations: SF (3), Berlin (2) Partnerships developed due to close interaction of scientists from both sides Projects could impact research pipeline, if successful Page 18 Kemal Malik, high-tech partnering conference, February 2015 Contact: USIC@Bayer.com www.colaborator.bayer.com
VC Investments: Access to break-through Innovation, Start-ups and Partnering Options Versant Ventures Strategic Investment of up to 25 Mio. USD Major Healthcare fund investing in the USA, Canada and Europe Access to a network of academic centers, entrepreneurs and start-ups Investment in early innovation and firstin-class assets High-Tech Gründerfonds II Investment Volume of 2,5 Mio. EUR Dominant German investor in the seed phase expanding to Biotech Promoting start-up community Attract creative companies to Bayer s CoLaborator in Berlin Page 19 Kemal Malik, high-tech partnering conference, February 2015
A strategic alliance supports drug development in ophthalmology Versant Ventures Bayer HealthCare Initiate drug development project through Build-to-Buy model Established network with academic innovators to fuel pipeline Leverage existing Drug Discovery and Development expertise through Inception vehicle Maximize synergies to bring new therapies to patients faster Generate added value for both partners Develop new therapies for Geographic Atrophy and wet AMD Provides access to capital and drug discovery and development expertise Financial commitment Strategic insight and access to scientific and technological expertise Access to Ophthalmology Development expertise with proven track record Page 20 Kemal Malik, high-tech partnering conference, February 2015
Bayer: Science For A Better Life a Mission born out of our Spirit Innovation Culture External Innovation Frameworks promoting Innovation Page 21 Kemal Malik, high-tech partnering conference, February 2015
Thank you!