Bayer : Geschäftsbericht 2020 Englisch (PDF, 2,9 MB)

Five-Year Summary

Five-Year Summary

EBITDA1 (2,910)

34,943	35,015	36,742	43,545
8,801	8,563	9,695	9,529
9,318	9,288	8,969	11,474
26.7%	26.5%	24.4%	26.3%
5,738	5,903	3,454	4,162
6,826	7,130	6,013	6,975
4,773	4,577	1,886	2,853
4,531	7,336	1,695	4,091
5.44	8.29	1.80	4.17
6.67	6.64	5.60	6.38
5,806	5,202	4,652	4,214
11,778	3,595	35,679	34,068
2,627	2,418	2,368	2,920
10.3	10.8	4.0	3.7
2,233	2,402	2,611	2,751
2.70	2.80	2.80	2.80
-	-	-	42
-	-	-	38
-	-	-	41
-	-	-	3.76
-	-	-	8.87
-	-	-	0.0
4,405	4,504	5,105	5,301
11.7	11.7	13.0	11.3
16.7	16.2	15.5	15.6
3.9	3.9	4.1	3.9
99,592	99,820	107,894	103,824
9,459	9,528	10,778	11,788
0.40	0.45	0.40	0.46
-	-	-	0.10
26,243	25,832	28,903	39,212
209	205	219	250
428	485	303	316
93	98	42	59

€ million

2020

Bayer Group financial KPIs Sales

41,400

EBITDA before special items1 EBITDA margin before special items1 EBIT1

9,31826.7%

9,28826.5%

8,96924.4%

11,47411,461

26.3%27.7%

(16,169)

EBIT before special items1 Income before income taxes

6,826

7,130

6,013

6,975

7,095

4,773

4,577

1,886

2,853(17,250)

Net income (from continuing and discontinued operations)

4,531

7,336

1,695

4,091(10,495)

Earnings per share (from continuing and discontinued operations) (€)1 Core earnings per share (from continuing operations) (€)1

5.44

8.29

1.80

4.17(10.68)

6.67

6.64

5.60

6.386.39

Free cash flow 1,343

Net financial debt

Capital expenditures (newly capitalized) Return on Capital Employed (ROCE) (%)

11,7782,62710.3

3,5952,41810.8

35,6792,3684.0

34,06830,041

2,9203,138

3.7

- 16,5

Bayer AG

Total dividend payment Dividend per share (€)

2,2332.70

2,4022.80

2,6112.80

2,7511,965

2.802.00

Bayer Group nonfinancial KPIs2

Number of smallholder farmers in LMICs who have received support (million)

Number of women in LMICs who have gained access to modern contraception (million)

Number of people in underserved communities whose self-care needs have been supported by Bayer interventions (million)

Scope 1 & 2 greenhouse gas emissions (million t)

Scope 3 greenhouse gas emissions from relevant categories (million t) Off-setting of remaining Scope 1 & 2 greenhouse gas emissions (million t)

------

------

------

4245

3840

4143

3.763.58

8.877.88

0.00.20

Innovation

Research and development expenses3

Ratio of R&D expenses to sales - Crop Science (%)4 Ratio of R&D expenses to sales - Pharmaceuticals (%)4 Ratio of R&D expenses to sales - Consumer Health (%)4

4,40511.716.73.9

4,50411.716.23.9

5,10513.015.54.1

5,3017,126

11.310.4

15.615.5

3.93.8

Employees

Number of employees5 (Dec. 31)

Personnel expenses (including pension expenses) (€ million)

99,5929,459

99,8209,528

107,89410,778

103,82499,538

11,7889,769

Safety & Environmental Protection

Recordable Incident Rate (RIR) for Bayer employees Process Safety Incident Rate (PSI-R)

0.40-

0.45-

0.40-

0.460.32

0.100.08

Total energy consumption (terajoules) Energy efficiency (kWh/€1,000)6 Hazardous waste generated (thousand t) Water use (million m³)

26,243

25,8335,858

209

428

93

20548598

21930342

250241

316305

5957

2019 figures restated; figures for 2016 - 2018 as last reported

• 1 For definitions of the indicators see A 2.3.

• 2 For more information see A 1.2.1

• 3 The increase in research and development expenses in 2020 was mainly due to special charges in connection with the impairment charges at Crop Science.

• 4 R&D expenses before special items

• 5 Employees calculated as full-time equivalents (FTEs)

• 6 Quotient of total energy consumption and external sales

At a Glance

Fiscal 2020:

Bayer delivers robust performance despite pandemic - foundation laid for future growth

• // Group sales at €41.4 billion, impacted by negative currency effects of €1.9 billion (Fx & p adj. +0.6%)

• // EBITDA before special items unchanged at €11.5 billion - currency effects offset by stringent cost management

• // Crop Science and Pharmaceuticals report stable operational business, Consumer Health sees strong growth

• // Core earnings per share at €6.39 (+ 0.2%)

• // Earnings per share at -€10.68, impacted by litigation provisions and impairments

• // Net financial debt improves to €30.0 billion

• // Proposed dividend of €2.00 per share

• // Portfolio and innovation capabilities strengthened

• // Outlook for 2021: positive momentum and solid operational growth - stable earnings at constant currencies

Contents

Contents

To our Stockholders

Chairman's Letter __________________________________________ 6

Board of Management __________________________________ 12

Report of the Supervisory Board _____________________ 13

Investor Information _____________________________________ 21

About this Report _________________________________________ 25

ACombined Management Report

1. Fundamental Information About the Group_____ 27

• 1.1 Corporate Profile and Structure ________________________ 27

• 1.1.1 Corporate Profile _______________________________________ 27

• 1.1.2 Corporate Structure ____________________________________ 27

• 1.2 Strategy and Management _____________________________ 32

• 1.2.1 Strategy and Targets ___________________________________ 32

• 1.2.2 Sustainability Management ____________________________ 37

• 1.2.3 Management Systems __________________________________ 39

• 1.3 Focus on Innovation __________________________________ 40

• 1.4 Commitment to Employees ____________________________ 57

• 1.5 Procurement and Supplier Management_______________ 62

• 1.6 Product Stewardship ___________________________________ 64

• 1.7 Environmental Protection and Safety __________________ 67

2. Report on Economic Position ______________________ 71

• 2.1 Overview of Business Performance ____________________ 71

• 2.1.1 Economic Position and Target Attainment ____________ 71

• 2.1.2 Key Events ______________________________________________ 72

• 2.1.3 Economic Environment _________________________________ 76

• 2.2 Earnings; Asset and Financial Position

  of the Bayer Group _____________________________________ 77

• 2.2.1 Earnings Performance of the Bayer Group ____________ 77

• 2.2.2 Business Development by Division ____________________ 82

• 2.2.3 Value-Based Performance _____________________________ 90

• 2.2.4 Asset and Financial Position of the Bayer Group______ 91

• 2.3 Alternative Performance Measures Used

  by the Bayer Group _____________________________________ 96

3. Report on Future Perspectives and

on Opportunities and Risks _________________________ 99

3.1 Future Perspectives ____________________________________ 99

3.1.1 Economic Outlook ______________________________________ 99

• 3.1.2 Corporate Outlook ____________________________________ 100

• 3.2 Opportunity and Risk Report _________________________ 101

• 3.2.1 Group-wide Opportunity and

  Risk Management System ____________________________ 101

• 3.2.2 Opportunity and Risk Status __________________________ 105

• 3.2.3 Overall Assessment of Opportunities and Risks

  by the Board of Management _________________________ 114

4. Corporate Governance Report ___________________ 115

• 4.1 Declaration by Corporate Management

  Pursuant to Sections 289f and 315d of the

  German Commercial Code ____________________________ 115

• 4.2 Compliance ___________________________________________ 119

• 4.3 Disclosures Pursuant to Sections 289b

  Through e and 315b and c of the German

  Commercial Code _____________________________________ 121

• 4.4 Compensation Report ________________________________ 121

• 4.4.1 Compensation of the Board of Management _________ 122

• 4.4.2 Compensation and Benefits Granted and Their

  Allocation to Members of the Board of Management 140

• 4.4.3 Development of Board of Management

  Compensation Relative to Employee Compensation

  and the Financial Performance of the Company _____ 143

• 4.4.4 Compensation of the Supervisory Board _____________ 145

• 4.4.5 Further Information ___________________________________ 147

• 4.5 Takeover-Relevant Information _______________________ 147

5. Information on Bayer AG ___________________________ 149

• 5.1 Earnings Performance of Bayer AG __________________ 149

• 5.2 Asset and Financial Position of Bayer AG ____________ 152

• 5.3 Forecast, Opportunities and Risks for Bayer AG _____ 154

• 5.4 Nonfinancial and Other Disclosures by Bayer AG ____ 155