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///////////// Health for all, Hunger for none 43 rd Annual J.P . Morgan Healthcare Conference Handout January 2025
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Cautionary Statements Regarding Forward-Looking Information 2 This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. 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 http://www.bayer.com / /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals
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Delivering Sales Growth, Earnings and Cash Flow Guidance 3 Sales Growth (cpa) Core EPS 20.2% 26.9% 23.4% -2% +4% +3% cpa = currency and portfolio adjusted BAYER GROUP €4.00 vs PY +1% vs PY Free Cash Flow -€0.2bn vs PY 9M 2024 Sales Growth (cpa) EBITDA Margin (before special items) Crop Science Pharmaceuticals Consumer Health Growth in Pharmaceuticals and Consumer Health offsetting headwinds in Crop Science /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals
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Our Ambition Through 2026 4 Group Growth & Innovation: • Crop Science: Outgrow market in core business; Improve profitability; Extend innovation leadership with annual portfolio refresh and advancement of blockbuster technologies • Pharmaceuticals: Support topline resilience during LoE’s of major products; Drive productivity gains to support margins; Advance early assets to rebuild promising mid-/late pipeline • Consumer Health: Grow above market; Deliver profitability at industry competitive margin level; Further build our iconic brands through innovation and commercial excellence New Operating Model: • Implementation of dynamic shared ownership • Higher customer and product focus and leaner organizational set up Cash & Deleveraging: • Improve cash generation and cash conversion1 • Reduce net debt and improve leverage ratio towards ~ 2.5x Litigation: • Broaden litigation approach in an effort to reduce the long-term exposure • Advance legal strategies inside and outside the courtroom 1 Cash conversion: Free Cash Flow / EBITDA before special items /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals
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43rd Annual J.P. Morgan Healthcare Conference January 14, 2025 Stefan Oelrich Member Of The Board Of Management Of Bayer AG President Pharmaceuticals
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Affirming Progress on Bayer Pharma’s Strategic Agenda RENEW TOPLINE GROW PIPELINE VALUE LEVERAGE NEW OPERATING MODEL // Managing through increasing Xarelto LoE pressures // Base business remains resilient // Launch of Eylea 8mg including Pre-filled Syringe underway // Continued strong uptake of launch brands Nubeqa and Kerendia // Launch preparations for Acoramidis and Elinzanetant ongoing // Eight successful Phase III completions since 2024 // Replenishment of early- and mid-stage pipeline with increased contributions from platform companies // New R&D model focused on innovative FIC/BIC assets and productivity // Balancing pressure on earnings through shift of resources to focus areas // New architecture implemented – vast majority of customer and product teams activated // Building a leaner and more agile organization resulting in significant headcount reductions /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals6
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Bayer Pharma to Deliver at Higher End of 2024 Guidance /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals7 FINANCIAL PERFORMANCE +80% (cpa3) €1.1bn +7% (cpa3) €1.5bn +79% (cpa3) €0.3bn KEY DRIVERS 9M 2024 Net Sales ∆% yoy (cpa3) 9M 2024 Actual FY 2024 Guidance at constant FX1 +4% 0% to +3% (previously: -4% tp 0%) EBITDA Margin 4 26.9% 26% to 29% 2024 Estimated FX impact2 ~ -2%pts ~ -4%pts Guidance for sales growth raised in August 2024 On track to deliver at higher end of raised guidance Radiology 1 Reflects our 2024 guidance at the average actual currencies for 2023; 2 Estimated FX impact: Currency assumptions based on month- end September 2024 spot rates (1 EUR=) 1.12 USD, 6.08 BRL, 7.83 CNY, 1,082 ARS, 38.27 TRY. Impact is calculated as difference to constant currencies = at average actual currencies for 2023; 3 currency and portfolio adjusted; 4 EBITDA Margin before special item +7% (cpa3) €2.5bn -11% (cpa3) €2.6bn
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Building Momentum for Long-Term Growth as of 2027+ €9.6bn €3.2bn €4.1bn €1.1bn Stable: Eylea 8mg to sustain franchise sales and share Decline: Xarelto New Launch Assets: Elinzanetant, Acoramidis and Asundexian Stroke1 €18.1bn Rejuvenated Portfolio with 6 Potential New Growth Drivers Nubeqa, Kerendia Xarelto Base Business (incl. Radiology, WH and Other Late Lifecycle Assets) Eylea 2mg & 8mg New Launch Assets 2024-2026 (cpa) 2027+2023illustrative and beyond Perspectives 2025 Stabilize Xarelto after LoE impact Drive growth momentum of Nubeqa and Kerendia Forge next wave of growth with Acoramidis and Elinzanetant Sustain Eylea Market Position Prepare for Asundexian Stroke /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals 1 Phase III read-out expected in H2 20258
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Eylea: Leader in Retinal Market and Well-Positioned to Sustain Market Position /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals9 EYLEA is the #1 anti-VEGF treatment since 2016 EYLEA 8mg: Setting a new standard in retinal diseases Unprecedented clinical profile consistentlyconfirmed across Phase III studies First drug with approved treatment interval of up to 5 months in nAMD and DME1 Pre-filled syringe availabe (PFS) since September 2024 and beyond Perspectives 2025 Expect continued growth for anti-VEGF market ~3-4% CAGR 2024 - 20332 Execute on continued 8mg launches and PFS roll-out to maintain Eylea franchise market share Expect first data from RWE3 study SPECTRUM in H1 2025 g Strong market share uptake observed in first-wave countries 6,0%2,9% 13,2% 66,9% 67,3% 53,7% 18,5% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% Nov'23 Feb'24 May'24 Aug'24 Japan 8,3% 66,6%59,3% 53,1% 13,5% 22,8% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% Nov'23 Feb'24 May'24 Aug'24 Switzerland Source: MIDAS LC EUR Oct.24 1 Source: https://www.ema.europa.eu/en/documents/product-information/eylea-epar-product-information_en.pdf 2 Evaluate Ltd, Dec 12, 2024 3 RWE = Real World Evidence
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Nubeqa: Blockbuster Status with 100k+ Patients Treated to Date /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals10 g is a non-steroidal androgen receptor inhibitor (ARI) with market- leading positions in the treatment of prostate cancer Global Sales (€bn) Powerful efficacy and favourable tolerability profile demonstrated throughout Phase III program #1 in nmCRPC1 and #2 in mHSPC2 within 5 years of approval Continues to grow faster than the ARI market in the US; additional approvals driving further growth ex-US 2021 2022 2023 2024e ~1.5 0.9 0.5 0.2 Expect continued growth in nmCRPC 1 and mHSPC2 Expand into significantly larger patient populations mid- to long- term: // High risk biochemical recurrence launch expected in 2028 // (Neo) Adjuvant treatment of high risk localized prostate cancer launch expected in 2028 and beyond Perspectives 2025 1 nonmetastatic Castration-Resistent Prostate Cancer 2 metastatic Hormone-Sensitive Prostate Cancer
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Kerendia: Building a True Cardiorenal Brand in Chronic Kidney Disease and Heart Failure /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals11 g is the only selective, nonsteroidal MRA1 with proven Heart and Kidney benefit Strong growth in CKD2/T2D3 in key regions and countries, driven by US and China HF4 indication offers significant growth potential: FINEARTS-HF showed groundbreaking results in highly underserved space Applications for HF indication in US and China just submitted 2021 2022 2023 2024e 0 0.1 0.3 ~0.5 Further drive uptake in ~700m patient CKD market, by accelerating CKD/T2D indication and broadening to cover whole spectrum of CKD Prepare launch into underserved market, addressing ~50% of HF patients and beyond Perspectives 2025 Global Sales (€bn) 1 MRA = mineralocorticoid receptor antagonist 2 CKD = Chronoc Kidney Disease 3 T2D = type-2 Diabetes 4 HF = Heart Failure
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Leveraging our Market-Leading Positions in CV and WH to Drive Further Growth Momentum /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals12 ACORAMIDIS in ATTR-CM1 // Potential New Treatment Option in ATTR-CM1 // Addressing high medical need in a focused, well defined but highly under-diagnosed patient population // ATTRibute-CM showed highly significant results // First non-hormonal, oral, dual neurokinin-1,3 receptor antagonist // Up to 80% of women going through menopausal transition experience vasomotor symptoms (VMS). // 2 out of 3 women will not be treated with hormones // OASIS 1-4 program consistently showed significant reduction in frequency and severity of VMS reduction in combined endpoint, showing benefits already after 3 months of treatment and 50% reduction in CV hospitalizations36% // In-licensed from BridgeBio, exclusive commercialization rights for European markets Expect first launches in H2 2025 Expect first launches in H1 2025 ELINZANETANT in VMS treatment 1 transtherytin amyloid cardiomyopathy OASIS 1 VMS: 26 Week Efficacy Study OASIS 2 VMS: 26 Week Efficacy Study OASIS 3 VMS: 52 Week Safety / Efficacy Study OASIS 4 iVMS due to breast cancer therapy NEW
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Pipeline Replenishment in Full Swing, Driven by New Innovation Model /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals13 Phase III advancements Early- and mid-stage advancements VVD Keap1 Act (Oncology) HER2/m EGFR Inh (Oncology) Phase I additions DGKalpha Inh (Oncology) 225Ac-Pelgifatamab (Oncology) VVD STAT3 Inh (Oncology) 225Ac-PSMA-Trillium (Oncology) BAY 2701250 (Pulmonary Hypertension) BAY 3389934 (Anticoagulation) Phase II additions AB-1002 Gene therapy (congestive HF) Anti-alpha2-AP (acute ischemic stroke) AB-1005 Gene therapy (Parkinson’s Disease) sGC activator oral (CKD) Gadoquatrane (Contrast agent) Phase III additions Asundexian (Atrial fibrillation) OCEANIC-AF Phase III completions Elinzanetant (VMS) OASIS-1-4 Nubeqa (mHSPC w/o chemotherapy) ARANOTE Kerendia (HF with LVEF≥40%) FINEARTS-HF SOS1 Inhibitor (Oncology) Pipeline progress since June 20231 New starts Phase I Phase II Phase III Phase III completions Focused on 4 Strategic Innovation Areas Shifted resources to assets with highest potential Advanced or Completed over 20 Clinical Programs across phases in past 18 months Bemdaneprocel (Parkinson’s Disease) Eylea 8mg (RVO) QUASAR 1 Pipeline status as of Jan 14, 2025; excluding future external / inorganic projects Kerendia (CKD in T1D) FINE-ONE
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g g Accelerating Development of Promising Assets /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals14 BEMDANEPROCEL in Parkinson’s disease // Parkinson’s disease (PD) is the second most common neurodegenerative disease, affecting more than 11 million people globally and ~1 million in the US // Current treatments do not replace lost dopaminergic neurons and lose efficacy over time, leading to motor complications // Bemdaneprocel is the first PSC1-derived cell therapy with positive Phase I data in PD // Plan to initiate Phase III trial announced on Jan 13, 2025 // Favorable safety profile through 24-months post transplantation // Trends towards improvement or stability across motor, non-motor, and quality of life assessments indicate potential clinical benefit 1 PSC = pluripotent stem cells
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New Operating Model: Increased Focus, Quality, Productivity and Efficiency /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals15 FROM: Traditional hierarchical org focus… TO: Mission-centric, value- focused operating model Focus // Shift of resources towards launch brands; Expanded presence in the US // Stronger focus on customer needs with ~300 dedicated product and customer teams // Innovation focus areas driven by value, differentiation, feasibility and competencies Quality // Increased business ownership by micro enterprises // Teams to utilize most appropriate functional expertise when needed // Shift to breakthrough innovation leveraging scientific advances, platforms, precision medicine and AI Transformative Improvements to Drive Topline Growth and Profitability Productivity // Shift to value creation, asset-centric operating model, leaner governance // Self-managed customer- and product teams with much greater autonomy // Small clusters operating with speed and efficient decision-making Efficiency // Cost efficiencies realized with the elimination of roles, processes and activities not focused on our mission // Reduction of management layers // Stringent Cost and OPEX Management
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Building Momentum for Long-term Growth as of 2027 while Managing LoE Transition /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals16 Successful launches of Nubeqa, Kerendia and Eylea 8mg to largely balance LoEs Rapid rebuild of competitive pipeline is in full swing, based on new Innovation Model Upcoming launches of Acoramidis and Elinzanetant to drive further growth momentum New Operating Model is driving productivity and efficiency gains amid LoE pressures and growth investments Three strategic priorities: Renew topline – grow pipeline value – leverage new operating model Treat the untreatable. Cure disease. Offer hope. BAYER
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///////////// Health for all, Hunger for none Appendix January 2025
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Pharmaceuticals – Pipeline Overview1 (as of December 11, 2024) 18 1 Bayer and partner sponsored + 3rd party label enabling studies with first patient first visit 2 Conducted by Merck & Co 3 Including Precision Cardiovascular, Nephrology & Acute Care 4 Exclusive commercialization rights acquired for EU markets; pending marketing authorization approval. Submission to EMA underresponsibility of BridgeBio Life cycle management New molecular entity Phase III Darolutamide (AR Inhibitor) Adjuvant Prostate Cancer (DASL-HiCaP) Prostate Cancer with Biochemical Recurrence after Curative Radiotherapy (ARASTEP) HER2/mEGFR Inhibitor Advanced Non-small Cell Lung Cancer with HER2 Activating Mutations, 1L (SOHO-02) Finerenone (MR Antagonist) Heart Failure (HFmr/pEF) (FINEARTS-HF) Non-diabetic Chronic Kidney Disease (FIND-CKD) Chronic Kidney Disease in Type 1 Diabetes (FINE-ONE) Vericiguat (sGC Stimulator) Heart Failure (HFrEF) (VICTOR2) Asundexian (FXIa Inhibitor) 2⁰ Stroke Prevention (OCEANIC-STROKE) Aflibercept 8mg (VEGF Inhibitor) Retinal Vein Occlusion (QUASAR) Gadoquatrane (High Relaxivity Contrast Agent) Magnetic Resonance Imaging (QUANTI-CNS, QUANTI-OBR) Submissions Darolutamide (AR Inhibitor) US, EU: Prostate Cancer (mHSPC) (ARANOTE) Elinzanetant (Neurokinin-1,3 Rec Antagonist) US, EU: Vasomotor Symptoms Aflibercept 8mg (VEGF-Inhibitor) CN: Neovasc. Age-rel. Macular Degen. (nAMD) Oncology Cardiovascular+3 Neurology & Rare Diseases Immunology Others Phase II Congestive Heart Failure rAAV Gene Therapy (AB-1002) Congestive Heart Failure (GenePHIT) Anti-a2AP (BAY 3018250) Acute Ischemic Stroke; Pulmonary Embolism (SIRIUS) sGC Activator Oral (BAY 3283142) Chronic Kidney Disease (ALPINE-1) Parkinson‘s Disease rAAV Gene Therapy (AB-1005) Parkinson´s Disease (REGENERATE-PD) Protein Therapeutics Cell Therapy Contrast Agent Genetic Medicine Radionuclide Therapy Small Molecule Phase I HER2/mEGFR Inhibitor (BAY 2927088) DGKzeta Inhibitor (BAY 2965501) CCR8 Ab (BAY 3375968) VVD KEAP1 Act (VVD-130037 aka NRF2 Inh, BAY 3605349) DGKalpha Inh (BAY 2862789) 225Ac-Pelgifatamab (BAY 3546828) VVD STAT3 Inhibitor (VVD-130850, BAY 3630914) 225Ac-PSMA-Trillium (BAY 3563254) SOS1 Inhibitor (BAY 3498264) SEMA 3a (BAY 3401016) Anti-coagulant (BAY 3389934) Bemdaneprocel (Parkinson’s Disease Cell Therapy) (BRT-DA01) Multiple System Atrophy rAAV Gene Therapy (AB-1005 aka AAV2-GDNF-MSA) Pompe Disease rAAV Gene Therapy (ACTUS-101) LGMD2I/R9 rAAV Gene Therapy (AB-1003 aka LION-101) GPR84 Antagonist (BAY 3178275) BAY 2701250 Acoramidis4 (TTR-Stabilizer) EU: Transthyretin Amyloid Cardiomyopathy /// 43rd Annual J.P. Morgan Healthcare Conference /// Bayer Pharmaceuticals