Bayer (BAYN) investor relations material

Strategic positioning and market overview

• Operates as a global leader in health and nutrition, with strong positions in Crop Science, Pharmaceuticals, and Consumer Health, addressing essential human needs and major societal challenges.

• Focuses on innovation, investing ~€6bn annually in R&D, with a robust pipeline across all divisions and a dynamic shared ownership operating model to drive efficiency and growth.

• Strategic priorities include revitalizing the pharma pipeline, improving crop science profitability, cash generation, deleveraging, and managing litigation impacts.

• Targets above-market growth, margin expansion, and resilient performance despite macroeconomic volatility and litigation-related cash outflows.

Financial performance and outlook

• 2025 net sales reached €45.6bn, with a core EPS of €4.91 and free cash flow of €2.1bn; EBITDA before special items was €9.7bn.

• 2026 outlook projects net sales of €45.0–47.0bn, EBITDA before special items of €9.6–10.1bn, and core EPS of €4.30–4.80.

• Ongoing efficiency programs target €2bn in sustainable organizational savings by end of 2026.

• Focus on debt reduction and maintaining a strong balance sheet, aiming for a single A category rating.

Crop science division

• Holds #1 global position in seeds & traits and crop protection, contributing ~20% of inputs to the global ag market.

• Targets above-market growth, mid-20% EBITDA margin by 2029, and >€3.5bn incremental net sales from innovation by 2029.

• Pipeline includes >€32bn peak sales potential, with ten blockbuster launches expected in the next decade.

• Annual refresh of 400–500 new seed hybrids and 90–100 new crop protection formulations planned.

• Emphasizes regenerative agriculture and holistic crop system solutions, leveraging digital assets for market leadership.