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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. The growing and increasingly aging world population requires improved medical care and an adequate supply of food. Bayer is improving people’s quality of life by preventing, alleviating and treating diseases. And we are helping to provide a reliable supply of high-quality food, feed and plant-based raw materials.
We develop new molecules for use in innovative products and solutions to improve the health of humans, animals and plants. Our research and development activities are based on a profound understanding of the biochemical processes in living organisms.
Our goal is to achieve and sustain leadership positions in our markets, thus creating value for our customers, stockholders and employees. To this end, our strategy is designed to help solve some of the most pressing challenges facing humankind, and by doing this exceptionally well we aim to strengthen the company’s earning power.
We are committed to operating sustainably and addressing our social and ethical responsibilities as a corporate citizen, while at the same time respecting 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 25, 2016 in the Annual Report 2015:
|Bayer Group||2014||2015||Change from 2014|
|€ million||€ million||in %|
|EBIT before special items2||5,833||7,069||+21.2|
|EBITDA before special items4||8,685||10,266||+18.2|
|EBITDA margin before special items5||21.0 %||22.2 %|
|Income before income taxes||4,414||5,245||+18.8|
|Earnings per share (€) from continuing and discontinued operations6||4.14||4.97||+20.0|
|Core earnings per share (€) from continuing operations7||5.89||6.83||+16.0|
|Gross cash flow8||6,707||6,999||+4.4|
|Net cash flow from continuing and discontinued operations9||5,810||6,890||+18.6|
|Net financial debt||19,612||17,449||-11.0|
|Capital expenditures as per segment table||2,484||2,556||+2.9|
|Research and development expenses||3,537||4,281||+21.0|
|Return on equity||16.8%||17.9%|
|Bayer AG||2014||2015||Change from 2014|
|€ million||€ million||in %|
|Allocation to (withdrawal from) retained earnings||593||(706)||.|
|Total dividend payment||1,861||2,067||+11.1|
|Dividend per share (€)||2.25||2.50||+11.1|
|Employees||2014||2015||Change from 2014|
|Number of employees10 (Dec. 31)||117,400||116,800||-0.5|
|Personnel expenses (including pension expenses) (€ million)||9,693||11,203||+15,6|
2014 figures restated; figures for 2011 - 2013 as last reported.
1 EBIT = income after income taxes, plus income taxes, plus financial result. This indicator is not defined in the International Financial Reporting Standards.
2 EBIT before special items = EBIT plus special charges, minus special gains. This indicator is not defined in the International Financial Reporting Standards. See also Combined Management Report, Chapter 14.2 "Calculation of EBIT(DA) Before Special Items.".
3 EBITDA = EBIT plus the amortization of intangible assets and the depreciation of property, plant and equipment, plus impairment losses and minus impairment loss reversals, recognized in profit or loss during the reporting period. This indicator is not defined in the International Financial Reporting Standards. See also Combined Management Report, Chapter 14.2 "Calculation of EBIT(DA) Before Special Items.".
4 EBITDA before special items = EBITDA plus special charges, minus special gains. This indicator is not defined in the International Financial Reporting Standards. See also Combined Management Report, Chapter 14.2 "Calculation of EBIT(DA) Before Special Items.".
5 The EBITDA margin before special items is calculated by dividing EBITDA before special items by sales. This indicator is not defined in the International Financial Reporting Standards. See also Combined Management Report, Chapter 14.2 "Calculation of EBIT(DA) Before Special Items.".
6 Earnings per share as defined in IAS 33 = net income divided by the average number of shares. See also Note  to the Consolidated Financial Statements..
7 Core earnings per share = earnings per share, plus / minus amortization and impairment losses / impairment loss reversals of intangible assets, impairment losses / impairment loss reversals on property, plant and equipment, plus special charges, minus special gains (other than amortization and impairment losses / impairment loss reversals), plus / minus the related tax effects and the share of the adjustments attributable to noncontrolling interest. This indicator facilitates the comparability of performance over time. It is not defined in the International Financial Reporting Standards. See also Combined Management Report, Chapter 14.3 "Core Earnings Per Share.".
8 Gross cash flow = income after income taxes, plus income taxes, plus financial result, minus income taxes paid or accrued, plus depreciation, amortization and impairment losses, minus impairment loss reversals, plus / minus changes in pension provisions, minus gains / plus losses on retirements of noncurrent assets, minus gains from the remeasurement of already held assets in step acquisitions. The change in pension provisions includes the elimination of noncash components of EBIT. It also contains benefit payments during the year. Gross cash flow is not defined in the International Financial Reporting Standards. See also Combined Management Report, Chapter 14.5 "Liquidity and Capital Expenditures of the Bayer Group.".
9 Net cash flow = cash flow from operating activities according to IAS 7
10 Full-time equivalents
With the company’s focus now on the Life Science businesses, a new organizational structure was introduced effective January 1, 2016. The company’s operations are now managed in three divisions – Pharmaceuticals, Consumer Health and Crop Science – and the Animal Health business unit. Bayer currently still owns around 69% of Covestro AG.
2015 Pro Forma Key Data by New 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 2015
Conforming to the proposal of the Board of Management and the Supervisory Board, the Annual Stockholders’ Meeting on April 29, 2016 passed the resolution to pay a dividend for fiscal 2015 of EUR 2.50 per share.
The resulting payout ratio of 37 percent calculated on core earnings per share is within our target corridor of 30 percent to 40 percent (for details of the calculation of core earnings per share, see Annual Report 2015, Chapter 14.3 of the Combined Management Report).
The dividend yield calculated on the share price of €115.80 at year end 2015 amounts to 2.2 percent and the total dividend payment to €2,067 million.
Stock ownership by region
Our ownership structure shows the international distribution of our capital stock. The highest proportion of our outstanding shares, almost 28 percent, is held by investors in the United States and Canada, followed by Germany with nearly 21 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.
May 24, 2016: Moody’s placed Bayer’s A3/P-2 ratings under review for downgrade.
Sales and Earnings Forecast
(published on October 26, 2016 in the Interim Report Third Quarter 2016)
The forecasts for the alternative performance indicators EBITDA before special items, core earnings per share and currency- and portfolio-adjusted sales changes have been calculated in line with the reporting principles applied in preparing the financial statements and the adjustments described in Calculation of EBIT(DA) Before Special Items and (Core) Earnings Per Share.
We have adjusted the exchange rates relevant to our forecast to reflect current developments. For the fourth quarter of 2016 we are now using the exchange rates prevailing on September 30, 2016, including a EUR-USD rate of 1.12. A 1% appreciation (depreciation) of the euro against the relevant currencies would decrease (increase) sales on an annual basis by some €300 million and EBITDA before special items by about €90 million.
Following the signing in May 2016 of an agreement to sell the Consumer business of Environmental Science in the Crop Science Division, this business is no longer included in continuing operations and therefore is no longer included in the forecast.
The following forecast for the current fiscal year is based on the business development described in this report, taking into account the potential risks and opportunities and assuming the inclusion of the Covestro business for the full year.
For the Bayer Group, including Covestro, we are still planning sales of €46 billion to €47 billion in 2016. This continues to correspond to a low-single-digit percentage increase on a currency- and portfolio-adjusted basis. As before, we plan to increase EBITDA before special items by a high-single-digit percentage. It is now our aim to also increase core earnings per share from continuing operations by a high-single-digit percentage (previously: a mid- to high-single-digit percentage). This takes into account Covestro’s inclusion at around 64% starting on April 19, 2016 (January 1 to April 18, 2016: around 69%).
Life Sciences total
We continue to plan sales of approximately €35 billion for the Life Science activities, i.e. the Bayer Group excluding Covestro. This still corresponds to a mid-single-digit percentage increase on a currency- and portfolio-adjusted basis as previously forecasted. As before, we plan to increase EBITDA before special items by a mid- to high-single-digit percentage. Our planning includes dissynergies of around €130 million from the legal independence of Covestro and from divestments.
For Pharmaceuticals, we continue to expect sales above €16 billion. As before, this corresponds to a high-single-digit percentage increase on a currency- and portfolio-adjusted basis. We continue to plan to raise sales of our recently launched pharmaceutical products toward €5.5 billion. We are still expecting a low-teens percentage increase in EBITDA before special items. We aim to improve the EBITDA margin before special items.
In the Consumer Health Division, we continue to expect sales to come in at approximately €6 billion. As before, we plan to grow sales by a low- to mid-single-digit percentage on a currency- and portfolio-adjusted basis. We still expect EBITDA before special items to come in on the level of the prior year.
In light of the persistently weak market environment, we continue to expect Crop Science sales to be on the prior-year level on a currency- and portfolio-adjusted basis. As before, this is equivalent to reported sales of about €10 billion. We continue to expect a low-single-digit percentage decrease in EBITDA before special items.
At Animal Health, we continue to expect sales to be slightly above the prior-year level. This still corresponds to a low- to mid-single-digit percentage increase on a currency- and portfolio-adjusted basis, as previously forecasted. We now expect EBITDA before special items to come in on the level of the prior year (previously: increase by a low- to mid-single-digit percentage).
For 2016, we continue to expect sales to come in at approximately €1 billion. We are still planning EBITDA before special items of roughly minus €0.1 billion.
For 2016, Covestro is still expecting a sales decline. For the full year, EBITDA after adjustment for special items is expected to come in at about €1.9 billion (previously: at least at the prior-year level for the second half of 2016).
Further key data for the Bayer Group
We continue to anticipate special charges in EBITDA in the region of €0.5 billion in 2016. The integration of the acquired consumer care businesses, charges in connection with the reorganization of the Bayer Group and the agreed acquisition of Monsanto are expected to account for most of this amount.
Our prediction for the financial result is unchanged at around minus €1.2 billion. The effective tax rate is now likely to be about 23% (previously: about 24%). We continue to expect net financial debt at below €16 billion at the end of 2016.
Further details of the business forecast are provided in our Annual Report 2015, 18.2 Forecast for Key Data.
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|
|Peter Dahlhoff |
|Prof. Dr. Olaf Weber |
|Dr. Jürgen Beunink|
Head of Investor Relations1
1 on an interim basis