Interim / Quarterly Report • Aug 5, 2021
Interim / Quarterly Report
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| Bayer Group Key Data _____________ 3 | ||
|---|---|---|
| Interim Group Management Report as of June 30, 2021 __________ 4 | ||
| Key Events ____________ 4 | ||
| 1. | Overview of Sales, Earnings and Financial Position ___________ 5 | |
| 1.1 Earnings Performance of the Bayer Group ________ 5 | ||
| 1.2 Business Development by Division ________ 10 | ||
| 1.3 Asset and Financial Position of the Bayer Group _______ 17 | ||
| 2. | Research, Development, Innovation _____________ 19 | |
| Crop Science ___________ 19 | ||
| Pharmaceuticals ______________ 20 | ||
| Consumer Health _____________ 23 | ||
| Leaps by Bayer _______________ 23 | ||
| 3. | Report on Future Perspectives and on Opportunities and Risks _____ 23 | |
| 3.1 Future Perspectives __________ 23 | ||
| 3.2 Opportunities and Risks ____________ 25 |
| Bayer Group Consolidated Income Statements _______ 26 | |
|---|---|
| Bayer Group Consolidated Statements of Comprehensive Income _______ 27 | |
| Bayer Group Consolidated Statements of Financial Position ______ 28 | |
| Bayer Group Consolidated Statements of Cash Flows ______ 29 | |
| Bayer Group Consolidated Statements of Changes in Equity _____ 30 | |
| Notes to the Condensed Consolidated Interim Financial Statements of the Bayer Group ___ 31 | |
| Events after the end of the reporting period __________ 46 | |
| Responsibility Statement _______________ 47 | |
|---|---|
| Review Report ______________ 48 | |
| Financial Calendar ________________ 49 | |
| Reporting Principles ______________ 49 | |
| Masthead _____________ 49 |
| Change % | Change % | |||||||
|---|---|---|---|---|---|---|---|---|
| Fx. & p | Fx. & p | |||||||
| € million | Q2 2020 | Q2 2021 Reported | adj. | H1 2020 | H1 2021 Reported | adj. | ||
| Sales | 10,054 | 10,854 | + 8.0 | + 12.9 | 22,899 | 23,182 | + 1.2 | + 7.2 |
| Change in sales1 | ||||||||
| Volume | + 0.6% | + 11.3% | + 3.8% | + 6.7% | ||||
| Price | – 3.1% | + 1.6% | – 1.8% | + 0.5% | ||||
| Currency | – 2.0% | – 5.2% | – 0.8% | – 6.4% | ||||
| Portfolio | – 1.7% | + 0.3% | – 1.5% | + 0.4% | ||||
| Sales by region | ||||||||
| Europe / Middle East / Africa | 2,942 | 3,245 | + 10.3 | + 12.3 | 7,180 | 7,318 | + 1.9 | + 5.3 |
| North America | 3,858 | 4,066 | + 5.4 | + 13.0 | 9,175 | 8,964 | – 2.3 | + 4.6 |
| Asia / Pacific | 2,159 | 2,302 | + 6.6 | + 9.9 | 4,271 | 4,481 | + 4.9 | + 8.1 |
| Latin America | 1,095 | 1,241 | + 13.3 | + 20.5 | 2,273 | 2,419 | + 6.4 | + 22.1 |
| EBITDA1 | (9,604) | (891) | – 90.7 | (5,828) | 3,278 | |||
| Special items1 | (12,487) | (3,468) | (13,102) | (3,417) | ||||
| EBITDA before special items1 | 2,883 | 2,577 | – 10.6 | 7,274 | 6,695 | – 8.0 | ||
| EBITDA margin before special items1 | 28.7% | 23.7% | 31.8% | 28.9% | ||||
| EBIT1 | (10,784) | (2,281) | – 78.8 | (8,285) | 802 | |||
| Special items1 | (12,511) | (3,901) | (13,150) | (3,886) | ||||
| EBIT before special items1 | 1,727 | 1,620 | – 6.2 | 4,865 | 4,688 | – 3.6 | ||
| Financial result | (276) | (99) | – 64.1 | (928) | (447) | – 51.8 | ||
| Net income (from continuing and discontinued operations) |
(9,548) | (2,335) | – 75.5 | (8,059) | (246) | – 96.9 | ||
| Earnings per share1 from continuing and discontinued operations (€) |
(9.72) | (2.38) | – 75.5 | (8.20) | (0.25) | – 97.0 | ||
| Core earnings per share1 from continuing operations (€) |
1.59 | 1.61 | + 1.3 | 4.26 | 4.20 | – 1.4 | ||
| Net cash provided by (used in) operating activities (from continuing and discontinued operations) |
2,414 | 1,997 | – 17.3 | 2,185 | (768) | |||
| Free cash flow | 1,402 | 1,152 | – 17.8 | 609 | (2,074) | |||
| Net financial debt (at end of period) | 35,993 | 34,361 | – 4.5 | 35,993 | 34,361 | – 4.5 | ||
| Cash flow-relevant capital expenditures (from continuing and discontinued operations) |
585 | 493 | – 15.7 | 976 | 822 | – 15.8 | ||
| Research and development expenses | 1,167 | 1,638 | + 40.4 | 2,469 | 2,836 | + 14.9 | ||
| Depreciation, amortization and impairment losses /loss reversals |
1,180 | 1,390 | + 17.8 | 2,457 | 2,476 | + 0.8 | ||
| Number of employees2 (at end of period) |
101,168 | 99,439 | – 1.7 | 101,168 | 99,439 | – 1.7 | ||
| Personnel expenses (including pension expenses) |
2,423 | 2,931 | + 21.0 | 5,183 | 5,751 | + 11.0 |
Fx & p adj. = currency- and portfolio-adjusted
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
2 Employees calculated as full-time equivalents (FTEs)
In July, the U.S. Food and Drug Administration (FDA) approved finerenone for the treatment of adult patients with chronic kidney disease and type 2 diabetes under the brand name Kerendia™.
Also in July, the European Commission approved vericiguat in the European Union for the treatment of symptomatic chronic heart failure in adult patients under the brand name Verquvo™. We also obtained approval for Verquvo™ in Japan in June.
For further details, see Chapter 2. Research, Development, Innovation – Pharmaceuticals.
In June, we concluded an agreement to acquire Noria Therapeutics Inc. and PSMA Therapeutics Inc. to broaden our oncology platform of targeted alpha therapies. Through this acquisition, we will obtain exclusive rights to a differentiated alpha radionuclide therapy based on actinium-225 and a small molecule targeting the prostate-specific membrane antigen.
In August, we announced that we had entered into an agreement to acquire the U.S. biopharmaceutical company Vividion Therapeutics, Inc. Through the acquisition, we will gain access to a cutting-edge chemoproteomics platform that is able to identify previously unknown binding pockets in undruggable targets to generate first-in-class novel compounds in indications of high unmet medical need. Vividion's technology has already proven its applicability pre-clinically in oncology and immune-related diseases, with potential to expand into additional therapeutic areas.
As part of the acquisition, we will make an upfront payment of US\$1.5 billion along with success-based milestone payments of up to US\$0.5 billion. Closing of the transaction is contingent on customary closing conditions and is expected to take place in third quarter of 2021.
At the end of June, our Crop Science Division initiated the European launch of its global Carbon Initiative program for the agricultural industry, after it had already kicked off in the United States and Brazil in 2020. The decarbonization program is aimed at permanently reducing CO2 emissions in the agricultural value chain. As part of this initiative, farmers are given incentives to adopt climate-friendly practices to increase the resilience and sustainability of the food system.
At the end of May, we announced a series of measures to resolve potential future glyphosate litigation, combining both legal and commercial actions. The responsible court had previously denied the motion to approve the class settlement agreement.
In July, we provided an update on the progress made and announced additional details to provide clarity for investors. We have developed two scenarios based on a potential ruling by the Supreme Court of the United States in the Hardeman case.
We are confident that this provides an effective path to manage and address any risks from potential future Roundup™ litigation, while simultaneously giving Bayer more control going forward. We continue to believe there is no reason for safety concerns in connection with these products. See the Legal Risks section of the Notes for further details.
€524 million. Sales in Germany amounted to €554 million (Q2 2020: €528 million).
Crop Science achieved encouraging sales growth, with strong gains registered in Latin America and Asia / Pacific in particular. Business also expanded considerably in North America. Pharmaceuticals posted a significant increase in sales, with the division benefiting from a robust recovery from the COVID-19 restrictions in the women's healthcare, ophthalmology and radiology businesses, and also achieving substantial gains for other products, such as Xarelto™. Business at Consumer Health expanded significantly, with growth in all regions and categories.
Group EBITDA before special items fell by 10.6% to €2,577 million. This figure included a negative currency effect of €153 million and allocations to provisions for variable compensation of €411 million, after the second quarter of 2020 had seen the reversal of €56 million in provisions for variable compensation due to COVID-19 effects.
Crop Science posted a decline in EBITDA before special items due to an increase in the cost of goods sold and negative currency effects. The increase in EBITDA before special items at Pharmaceuticals was largely attributable to the division's very good sales performance. At Consumer Health, EBITDA before special items was up substantially against the prior-year period, mainly due to its positive business performance.
1 For definition of alternative performance measures see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
Depreciation, amortization and impairment losses – net of impairment loss reversals – amounted to €1,390 million (Q2 2020: €1,180 million), with intangible assets accounting for €1,025 million (Q2 2020: €665 million) and property, plant and equipment for €365 million (Q2 2020: €515 million). There were net impairment losses of €458 million (Q2 2020: €36 million), including €466 million (Q2 2020: €9 million) on intangible assets, after unscheduled impairment testing resulted in the recognition of net impairment losses of €437 million on intangible assets in the Crop Science Division. These concerned the Corn Seed & Traits cash-generating unit, with an impairment loss of €818 million, mainly on account of changes in the interest rate and currency environment. In addition, an impairment loss reversal of €381 million was recognized for the glyphosate unit, primarily as a result of improved business prospects.
Net impairment losses of €427 million (Q2 2020: €24 million) were included in special items.
EBIT of the Bayer Group came in at minus €2,281 million (Q2 2020: minus €10,784 million) after net special charges of €3,901 million (Q2 2020: €12,511 million) that mainly resulted from the discounted allocation to provisions in connection with the glyphosate litigations as well as the net impairment losses at the Crop Science Division mentioned above. Other special charges were attributable to an allocation to provisions related to the accelerated transformation of the company announced the previous fall. There were special gains in the Pharmaceuticals Division from a patent dispute involving Jivi™ and from the sale of a building in Berlin. EBIT before special items declined by 6.2% to €1,620 million (Q2 2020: €1,727 million).
| Special Items by Category1, 2 | ||||||||
|---|---|---|---|---|---|---|---|---|
| € million | EBIT Q2 2020 |
EBIT Q2 2021 |
EBIT H1 2020 |
EBIT H1 2021 |
EBITDA Q2 2020 |
EBITDA Q2 2021 |
EBITDA H1 2020 |
EBITDA H1 2021 |
| Total special items | (12,511) | (3,901) | (13,150) | (3,886) | (12,487) | (3,468) | (13,102) | (3,417) |
| Restructuring | (286) | (212) | (496) | (301) | (289) | (210) | (498) | (292) |
| of which in the Reconciliation | (183) | (144) | (312) | (210) | (171) | (144) | (300) | (210) |
| Acquisition / integration | (3) | (7) | (26) | (4) | (3) | (7) | (26) | (4) |
| of which in the Reconciliation | – | (1) | – | (1) | – | (1) | – | (1) |
| Divestments | (7) | 78 | (21) | 68 | (7) | 78 | (21) | 68 |
| of which in the Reconciliation | (4) | – | (13) | – | (4) | – | (13) | – |
| Litigations / legal risks | (12,051) | (3,334) | (12,419) | (3,193) | (12,051) | (3,334) | (12,419) | (3,193) |
| of which in the Reconciliation | (814) | 45 | (827) | 59 | (814) | 45 | (827) | 59 |
| Impairment losses / loss reversals3 | (163) | (433) | (187) | (463) | (137) | (2) | (138) | (3) |
| Other | – | 7 | – | 7 | – | 7 | – | 7 |
The following special items were taken into account in calculating EBIT and EBITDA:
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
2 Prior to December 31, 2020, special items pertaining to the integration of Monsanto Functions were reported in the category "acquisition and integration costs." Effective January 1, 2021, these special items have been included in the category "restructuring." The prior-year figures have been restated accordingly.
3 Where not already included in the other special items categories
A 1
| A 2 | |
|---|---|
| Special Items by Functional Cost1 | ||||||||
|---|---|---|---|---|---|---|---|---|
| € million | EBIT Q2 2020 |
EBIT Q2 2021 |
EBIT H1 2020 |
EBIT H1 2021 |
EBITDA Q2 2020 |
EBITDA Q2 2021 |
EBITDA H1 2020 |
EBITDA H1 2021 |
| Total special items | (12,511) | (3,901) | (13,150) | (3,886) | (12,487) | (3,468) | (13,102) | (3,417) |
| Cost of goods sold | (207) | (288) | (299) | (324) | (196) | (28) | (210) | (29) |
| Selling expenses | (25) | 77 | 9 | 65 | (25) | (32) | (45) | (44) |
| Research and development | ||||||||
| expenses | (10) | (279) | (30) | (271) | (10) | 5 | (30) | 13 |
| General administration expenses | (189) | (173) | (359) | (255) | (188) | (173) | (358) | (255) |
| Other operating income / expenses | (12,080) | (3,238) | (12,471) | (3,101) | (12,068) | (3,240) | (12,459) | (3,102) |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
Income from discontinued operations after income taxes amounted to €0 million (Q2 2020: €71 million).
After a financial result of minus €99 million (Q2 2020: minus €276 million), income before income taxes amounted to minus €2,380 million (Q2 2020: minus €11,060 million). The financial result mainly comprised income of €209 million from investments in affiliated companies (Q2 2020: €54 million), which primarily included gains from the remeasurement of a Leaps investment, and net interest expense of €253 million (Q2 2020: €344 million). The financial result included net special gains of €16 million (Q2 2020: €67 million). After income from income taxes of €52 million (Q2 2020: €1,450 million) and accounting for noncontrolling interest, net income amounted to minus €2,335 million (Q2 2020: minus €9,548 million).
Core earnings per share came in at €1.61 (+1.3%; Q2 2020: €1.59), with the improvement in the financial result having a positive effect. Earnings per share (total) amounted to minus €2.38 (Q2 2020: minus €9.72), mainly due to the special charges related to the glyphosate litigations.
| Core Earnings per Share1 | ||||
|---|---|---|---|---|
| € million | Q2 2020 | Q2 2021 | H1 2020 | H1 2021 |
| EBIT (as per income statements) | (10,784) | (2,281) | (8,285) | 802 |
| Amortization and impairment losses / loss reversals on goodwill and other intangible assets |
664 | 1,025 | 1,431 | 1,697 |
| Impairment losses / loss reversals on property, plant and equipment, and accelerated depreciation included in special items |
25 | 3 | 105 | 46 |
| Special items (other than accelerated depreciation, amortization and impairment losses / loss reversals) |
12,487 | 3,468 | 13,102 | 3,417 |
| Core EBIT | 2,392 | 2,215 | 6,353 | 5,962 |
| Financial result (as per income statements) | (276) | (99) | (928) | (447) |
| Special items in the financial result2 | (67) | (16) | 92 | (53) |
| Income taxes (as per income statements) | 1,450 | 52 | 971 | (593) |
| Special items in income taxes | – | – | – | – |
| Tax effects related to amortization, impairment losses / loss reversals and special items | (1,925) | (563) | (2,291) | (734) |
| Income after income taxes attributable to noncontrolling interest (as per income statements) |
(9) | (7) | (8) | (8) |
| Above-mentioned adjustments attributable to noncontrolling interest | – | – | (1) | – |
| Core net income from continuing operations | 1,565 | 1,582 | 4,188 | 4,127 |
| Shares (million) | ||||
| Weighted average number of shares | 982.42 | 982.42 | 982.42 | 982.42 |
| € | ||||
| Core earnings per share from continuing operations | 1.59 | 1.61 | 4.26 | 4.20 |
| 1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group." |
2 Primarily comprising changes in the fair value of our interests in Elanco and Covestro
The number of employees in the Bayer Group as of the closing date declined by 1.7% year on year to 99,439 (June 30, 2020: 101,168). Personnel expenses increased by 21.0% to €2,931 million in the second quarter (Q2 2020: €2,423 million). This was partly attributable to higher allocations to provisions for variable compensation.
Group sales in the first half of 2021 rose by 7.2% (Fx & portfolio adj.) to €23,182 million (H1 2020: €22,899 million; reported: +1.2%). There was a negative currency effect of €1,462 million. Sales in Germany amounted to €1,215 million (H1 2020: €1,271 million).
Sales at the Crop Science Division increased substantially, with growth in all regions. The Pharmaceuticals Division registered an increase in sales due to a normalization in the frequency and course of treatments in the areas that were particularly impacted by the pandemic in the previous year and to further operational growth. We also reported sales in the area of cell and gene therapy for the first time, with these sales recorded as a portfolio effect. Sales also rose in the Consumer Health Division, as the growth momentum carried over from the previous year. Continued strong demand for nutritional supplements in particular led to significant gains.
EBITDA before special items of the Bayer Group fell by 8.0% to €6,695 million (H1 2020: €7,274 million), diminished by negative currency effects of €490 million and allocations to provisions for variable compensation of €777 million (H1 2020: allocations of €243 million).
At Crop Science, EBITDA before special items declined due to an increase in the cost of goods sold and negative currency effects. EBITDA before special items at Pharmaceuticals declined year on year, mainly as a result of negative currency effects and an increase in the cost of goods sold. Consumer Health posted an encouraging increase in EBITDA before special items due to the positive development of business.
Depreciation, amortization and impairment losses – net of impairment loss reversals – amounted to €2,476 million in the first six months of 2021 (H1 2020: €2,457 million). They comprised €1,697 million (H1 2020: €1,432 million) in amortization and impairments on intangible assets and €779 million (H1 2020: €915 million) in depreciation and impairments on property, plant and equipment. Impairment losses, net of impairment loss reversals, totaled €524 million (H1 2020: €81 million) and included €487 million in net impairment losses on intangible assets (H1 2020: net impairment loss reversals of €26 million) that were primarily attributable to the net impairment loss in the Crop Science Division detailed above.
Impairment losses of €463 million (H1 2020: €47 million), net of impairment loss reversals, and accelerated depreciation of €6 million (H1 2020: €1 million) were included in special items.
EBIT of the Bayer Group in the first half of 2021 was €802 million (H1 2020: minus €8,285 million) after net special charges of €3,886 million (H1 2020: €13,150 million). The special charges mainly related to the discounted allocation to provisions for the glyphosate litigations as well as to the net impairment losses at the Crop Science Division mentioned above. Special charges relating to restructuring also had a negative impact. By contrast, we registered a special gain from a patent dispute involving the pharmaceutical product Jivi™. EBIT before special items declined by 3.6% to €4,688 million (H1 2020: €4,865 million).
Income from discontinued operations after income taxes was €0 million (H1 2020: €191 million).
After a financial result of minus €447 million (H1 2020: minus €928 million), income before income taxes in the first six months of the year came in at €355 million (H1 2020: minus €9,213 million). The financial result especially comprised income of €217 million from investments in affiliated companies (H1 2020: loss of €112 million), net interest expense of €521 million (H1 2020: €708 million) and interest cost of €37 million (H1 2020: €66 million) for pension and other provisions, as well as an exchange loss of €171 million (H1 2020: €41 million). The financial result included net special gains of €53 million (H1 2020: net special charges of €92 million) that mainly resulted from the change in the fair value of our interests in Covestro and Elanco. After income tax expense of €593 million (H1 2020: tax income of €971 million), income after income taxes was minus €238 million (H1 2020: minus €8,242 million). Adjusted for income from discontinued operations after income taxes and income attributable to noncontrolling interest, net income came to minus €246 million (H1 2020: minus €8,059 million).
Core earnings per share declined by 1.4% to €4.20 (H1 2020: €4.26), while earnings per share (total) came in at minus €0.25 (H1 2020: minus €8.20).
| Change %1 | Change %1 | |||||||
|---|---|---|---|---|---|---|---|---|
| € million | Q2 2020 | Q2 2021 | Reported | Fx & p adj. | H1 2020 | H1 2021 | Reported | Fx & p adj. |
| Sales | 4,802 | 5,021 | + 4.6 | + 10.6 | 11,636 | 11,667 | + 0.3 | + 8.1 |
| Change in sales1 | ||||||||
| Volume | + 3.5% | + 7.4% | + 4.6% | + 5.8% | ||||
| Price | – 0.3% | + 3.2% | 0.0% | + 2.3% | ||||
| Currency | – 2.9% | – 6.0% | – 1.0% | – 7.8% | ||||
| Portfolio | 0.0% | 0.0% | 0.0% | 0.0% | ||||
| Sales by region | ||||||||
| Europe / Middle East / Africa | 958 | 1,003 | + 4.7 | + 6.4 | 2,852 | 2,884 | + 1.1 | + 5.5 |
| North America | 2,501 | 2,532 | + 1.2 | + 9.6 | 6,214 | 5,963 | – 4.0 | + 4.0 |
| Asia / Pacific | 575 | 627 | + 9.0 | + 12.5 | 991 | 1,142 | + 15.2 | + 19.3 |
| Latin America | 768 | 859 | + 11.8 | + 17.7 | 1,579 | 1,678 | + 6.3 | + 22.0 |
| EBITDA1 | (8,822) | (2,496) | – 71.7 | (6,412) | (69) | – 98.9 | ||
| Special items1 | (10,187) | (3,514) | (10,388) | (3,535) | – 66.0 | |||
| EBITDA before special items1 | 1,365 | 1,018 | – 25.4 | 3,976 | 3,466 | – 12.8 | ||
| EBITDA margin before special items1 | 28.4% | 20.3% | 34.2% | 29.7% | ||||
| EBIT1 | (9,600) | (3,483) | – 63.7 | (8,100) | (1,730) | – 78.6 | ||
| Special items1 | (10,212) | (3,945) | (10,491) | (3,997) | – 61.9 | |||
| EBIT before special items1 | 612 | 462 | – 24.5 | 2,391 | 2,267 | – 5.2 | ||
| Net cash provided by (used in) operating activities |
1,537 | 1,734 | + 12.8 | (224) | (2,403) | |||
| Cash-flow relevant capital expenditures |
322 | 187 | – 41.9 | 485 | 303 | – 37.5 | ||
| Research and development expenses | 511 | 819 | + 60.3 | 1,071 | 1,282 | + 19.7 | ||
Fx & p adj. = currency- and portfolio-adjusted
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
Crop Science posted a 10.6% increase in sales (Fx & portfolio adj.) to €5,021 million in the second quarter of 2021. Sales grew in all regions, with double-digit gains in Latin America and Asia / Pacific. We also registered significant sales growth in North America.
A 4
A 6
| Q2 2021 | Change %1 | H1 2020 | Change %1 | |||||
|---|---|---|---|---|---|---|---|---|
| € million | Q2 2020 | Reported | Fx & p adj. | H1 2021 | Reported | Fx & p adj. | ||
| Crop Science | 4,802 | 5,021 | + 4.6 | + 10.6 | 11,636 | 11,667 | + 0.3 | + 8.1 |
| Corn Seed & Traits | 948 | 962 | + 1.5 | + 8.6 | 3,598 | 3,356 | – 6.7 | + 2.0 |
| Herbicides | 1,324 | 1,468 | + 10.9 | + 16.2 | 2,744 | 2,956 | + 7.7 | + 14.7 |
| Fungicides | 648 | 774 | + 19.4 | + 22.9 | 1,433 | 1,654 | + 15.4 | + 22.4 |
| Soybean Seed & Traits | 532 | 530 | – 0.4 | + 9.1 | 1,100 | 1,059 | – 3.7 | + 6.1 |
| Insecticides | 386 | 364 | – 5.7 | – 1.4 | 768 | 724 | – 5.7 | + 1.4 |
| Environmental Science | 296 | 316 | + 6.8 | + 13.9 | 579 | 601 | + 3.8 | + 11.7 |
| Vegetable Seeds | 167 | 168 | + 0.6 | + 5.9 | 313 | 325 | + 3.8 | + 9.6 |
| Other | 501 | 439 | – 12.4 | – 6.3 | 1,101 | 992 | – 9.9 | – 2.7 |
Sales by Strategic Business Entity
2020 figures restated; Fx & p adj. = currency- and portfolio-adjusted
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
EBITDA before special items at Crop Science decreased to €1,018 million in the second quarter of 2021 (Q2 2020: €1,365 million), giving a margin of 20.3%. Higher prices and volumes along with contributions from ongoing efficiency programs only partly offset an increase in costs, and particularly in the cost of goods sold. Earnings were also diminished by a negative product mix, currency effects of €111 million, and the later receipt of license revenues.
EBIT came in at minus €3,483 million (Q2 2020: minus €9,600 million) after net special charges of €3,945 million (Q2 2020: €10,212 million) that were mainly attributable to the discounted allocation to provisions in connection with the Roundup™ litigation as part of the glyphosate litigations.
| Special Items1,2 Crop Science | ||||||||
|---|---|---|---|---|---|---|---|---|
| € million | EBIT Q2 2020 |
EBIT Q2 2021 |
EBIT H1 2020 |
EBIT H1 2021 |
EBITDA Q2 2020 |
EBITDA Q2 2021 |
EBITDA H1 2020 |
EBITDA H1 2021 |
| Restructuring | (50) | (44) | (130) | (40) | (51) | (44) | (130) | (38) |
| Acquisition / integration | (3) | (4) | (26) | (1) | (3) | (4) | (26) | (1) |
| Divestments | (3) | (8) | (8) | (18) | (3) | (8) | (8) | (18) |
| Litigations / legal risks | (9,992) | (3,458) | (10,086) | (3,477) | (9,992) | (3,458) | (10,086) | (3,477) |
| Impairment losses / loss reversals | (164) | (431) | (241) | (461) | (138) | – | (138) | (1) |
| Total special items | (10,212) | (3,945) | (10,491) | (3,997) | (10,187) | (3,514) | (10,388) | (3,535) |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
2 Prior to December 31, 2020, special items pertaining to the integration of Monsanto Functions were reported in the category "acquisition and integration costs." Effective January 1, 2021, these special items have been included in the category "restructuring." The prior-year figures have been restated accordingly.
Sales at Crop Science increased by 8.1% (Fx & portfolio adj.) to €11,667 million in the first six months of 2021, with all regions contributing to this performance. We achieved significant gains in Latin America and Asia / Pacific in particular. Sales at Corn Seed & Traits increased in the Europe / Middle East / Africa region due in particular to higher prices but declined in North America following the expiration of a license agreement. At Herbicides, we posted sales gains in all regions due to increased volumes and prices.
Thanks to an increase in volumes, Fungicides registered higher sales in Latin America and Soybean Seed & Traits reported growth in North America. At Insecticides, sales increased in the Asia / Pacific and Latin America regions as a result of higher volumes but declined in Europe / Middle East / Africa due to the loss of a registration. Sales at Environmental Science and Vegetable Seeds rose in all regions. In the reporting unit "Other," our cotton seed business registered a decline in sales in North America in particular as a result of earlier product returns, which in the prior year had come in the third quarter.
EBITDA before special items at Crop Science declined by 12.8% in the first half of 2021 to €3,466 million (H1 2020: €3,976 million). As detailed above, higher price and volumes along with contributions from ongoing efficiency programs only partly offset an increase in costs, and especially in the cost of goods sold. Earnings were also diminished by a negative product mix, currency effects of €363 million, the expiration of a license agreement, and the later receipt of license revenues. The EBITDA margin before special items declined to 29.7%.
EBIT amounted to minus €1,730 million (H1 2020: minus €8,100 million) after net special charges of €3,997 million (H1 2020: €10,491 million) that were mainly attributable to the discounted allocation to provisions in connection with the Roundup™ litigation as part of the glyphosate litigations.
| Key Data – Pharmaceuticals | ||||||||
|---|---|---|---|---|---|---|---|---|
| Change %1 | Change %1 | |||||||
| € million | Q2 2020 | Q2 2021 | Reported | Fx & p adj. | H1 2020 | H1 2021 | Reported | Fx & p adj. |
| Sales | 3,992 | 4,494 | + 12.6 | + 16.2 | 8,538 | 8,859 | + 3.8 | + 7.4 |
| Change in sales1 | ||||||||
| Volume | – 0.8% | + 16.5% | + 2.9% | + 9.8% | ||||
| Price | – 8.0% | – 0.3% | – 5.4% | – 2.4% | ||||
| Currency | – 0.9% | – 4.0% | – 0.2% | – 4.3% | ||||
| Portfolio | 0.0% | + 0.4% | 0.0% | + 0.7% | ||||
| Sales by region | ||||||||
| Europe / Middle East / Africa | 1,554 | 1,774 | + 14.2 | + 15.8 | 3,353 | 3,469 | + 3.5 | + 5.9 |
| North America | 861 | 1,032 | + 19.9 | + 26.2 | 1,870 | 2,028 | + 8.4 | +12.5 |
| Asia / Pacific | 1,387 | 1,460 | + 5.3 | + 8.9 | 2,891 | 2,915 | + 0.8 | + 4.0 |
| Latin America | 190 | 228 | + 20.0 | + 28.5 | 424 | 447 | + 5.4 | + 20.1 |
| EBITDA1 | 68 | 1,564 | 1,410 | 3,192 | + 126.4 | |||
| Special items1 | (1,300) | 155 | (1,552) | 285 | ||||
| EBITDA before special items1 | 1,368 | 1,409 | + 3.0 | 2,962 | 2,907 | – 1.9 | ||
| EBITDA margin before special items1 | 34.3% | 31.4% | 34.7% | 32.8% | ||||
| EBIT1 | (165) | 1,312 | 924 | 2,681 | + 190.2 | |||
| Special items1 | (1,286) | 152 | (1,538) | 277 | ||||
| EBIT before special items1 | 1,121 | 1,160 | + 3.5 | 2,462 | 2,404 | – 2.4 | ||
| Net cash provided by operating activities |
531 | 570 | + 7.3 | 1,488 | 1,381 | – 7.2 | ||
| Cash flow-relevant capital expenditures |
187 | 236 | + 26.2 | 307 | 392 | + 27.7 | ||
| Research and development expenses | 595 | 762 | + 28.1 | 1,281 | 1,443 | + 12.6 |
Fx & portfolio adj. = currency- and portfolio-adjusted
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
A 7
Sales at Pharmaceuticals rose significantly in the second quarter of 2021, increasing by 16.2% (Fx & portfolio adj.) to €4,494 million. Our business showed a robust recovery from the COVID-19 restrictions, particularly in the areas of ophthalmology, women's healthcare and radiology, while other products such as Xarelto™ and the launch of our cancer drug Nubeqa™ also generated tangible growth.
| Change %1 | Change %1 | |||||||
|---|---|---|---|---|---|---|---|---|
| € million | Q2 2020 | Q2 2021 | Reported | Fx & p adj. | H1 2020 | H1 2021 | Reported | Fx & p adj. |
| Xarelto™ | 1,057 | 1,164 | + 10.1 | + 12.6 | 2,172 | 2,302 | + 6.0 | + 9.5 |
| Eylea™ | 568 | 711 | + 25.2 | + 27.4 | 1,161 | 1,382 | + 19.0 | + 21.5 |
| Mirena™ / Kyleena™ / Jaydess™ | 185 | 293 | + 58.4 | + 68.3 | 504 | 612 | + 21.4 | + 30.1 |
| Kogenate™ / Kovaltry™ / Jivi™ | 205 | 211 | + 2.9 | + 7.8 | 442 | 396 | – 10.4 | – 6.0 |
| YAZ™ / Yasmin™ / Yasminelle™ | 158 | 191 | + 20.9 | + 27.1 | 335 | 376 | + 12.2 | + 19.3 |
| Adalat™ | 154 | 174 | + 13.0 | + 12.7 | 316 | 349 | + 10.4 | + 11.6 |
| Aspirin™ Cardio | 145 | 159 | + 9.7 | + 11.7 | 316 | 343 | + 8.5 | + 12.0 |
| Adempas™ | 125 | 140 | + 12.0 | + 17.7 | 248 | 268 | + 8.1 | + 14.2 |
| Stivarga™ | 129 | 112 | – 13.2 | – 8.2 | 250 | 233 | – 6.8 | – 1.1 |
| Nexavar™ | 169 | 110 | – 34.9 | – 32.8 | 332 | 231 | – 30.4 | – 27.3 |
| CT Fluid Delivery2 | 87 | 111 | + 27.6 | + 35.2 | 188 | 214 | + 13.8 | + 20.8 |
| Gadovist™ product family | 67 | 104 | + 55.2 | + 62.2 | 179 | 204 | + 14.0 | + 19.7 |
| Ultravist™ | 68 | 90 | + 32.4 | + 35.4 | 147 | 170 | + 15.6 | + 19.9 |
| Betaferon™ / Betaseron™ | 112 | 80 | – 28.6 | – 23.7 | 214 | 169 | – 21.0 | – 15.9 |
| Xofigo™ | 61 | 65 | + 6.6 | + 14.6 | 139 | 130 | – 6.5 | + 0.4 |
| Total best-selling products | 3,290 | 3,715 | + 12.9 | + 16.6 | 6,943 | 7,379 | + 6.3 | + 10.5 |
| Proportion of Pharmaceuticals sales | 82% | 83% | 81% | 83% |
Fx & portfolio adj. = currency- and portfolio-adjusted
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
2 2020 figures restated; the CT Fluid Delivery product family comprises injection systems marketed primarily under the Stellant™ brand.
EBITDA before special items at Pharmaceuticals advanced by 3.0% in the second quarter of 2021 to €1,409 million (Q2 2020: €1,368 million), mainly due to the strong growth in sales. Research and development expenses increased against the low prior-year figure and were partly attributable to our cell and gene therapy unit. Earnings were also diminished by an increase in the cost of goods sold, expenses for product launches, and a negative currency effect of €26 million. The EBITDA margin before special items receded by 2.9 percentage points to 31.4%.
EBIT came in at €1,312 million (Q2 2020: minus €165 million) after net special gains of €152 million (Q2 2020: net special charges of €1,286 million) that primarily related to a patent dispute involving our product Jivi™ and the sale of an office building.
| Special Items1 Pharmaceuticals | A 9 | |||||||
|---|---|---|---|---|---|---|---|---|
| € million | EBIT Q2 2020 |
EBIT Q2 2021 |
EBIT H1 2020 |
EBIT H1 2021 |
EBITDA Q2 2020 |
EBITDA Q2 2021 |
EBITDA H1 2020 |
EBITDA H1 2021 |
| Restructuring | (42) | (16) | (32) | (37) | (56) | (13) | (46) | (29) |
| Acquisition / integration | – | (2) | – | (2) | – | (2) | – | (2) |
| Divestments | – | 86 | – | 86 | – | 86 | – | 86 |
| Litigations / legal risks | (1,245) | 79 | (1,506) | 225 | (1,245) | 79 | (1,506) | 225 |
| Impairment losses / loss reversals | 1 | (2) | – | (2) | 1 | (2) | – | (2) |
| Other | – | 7 | – | 7 | – | 7 | – | 7 |
| Total special items | (1,286) | 152 | (1,538) | 277 | (1,300) | 155 | (1,552) | 285 |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
Sales at Pharmaceuticals rose by 7.4% (Fx & portfolio adj.) to €8,859 million in the first six months of the year. This was primarily attributable to a normalization in the frequency and course of treatments in the areas of ophthalmology, women's healthcare and radiology, which had been especially impacted by pandemic-related restrictions in the previous year. We also significantly expanded business with Eylea™, particularly in Europe. Sales of Xarelto™ were up against the prior-year period, mainly as a result of considerable growth in China. The launch of our cancer drug Nubeqa™ also resulted in encouraging sales gains.
We also generated sales in the area of cell and gene therapy for the first time. These sales, which were attributable to the AskBio business acquired in the previous year, were reported under portfolio effects and included a milestone payment from a development collaboration.
EBITDA before special items at Pharmaceuticals declined by 1.9% to €2,907 million in the first half of 2021 (H1 2020: €2,962 million). Earnings were diminished by negative currency effects of €83 million and an increase in the cost of goods sold. These negative effects were largely offset by the division's good business performance. The EBITDA margin before special items receded by 1.9 percentage points to 32.8%.
EBIT increased to €2,681 million (H1 2020: €924 million) after net special gains of €277 million (H1 2020: net special charges of €1,538 million) that primarily related to a patent dispute involving our product Jivi™ and the sale of an office building.
| Change %1 | Change %1 | |||||||
|---|---|---|---|---|---|---|---|---|
| € million | Q2 2020 | Q2 2021 | Reported | Fx & p adj. | H1 2020 | H1 2021 | Reported | Fx & p adj. |
| Sales | 1,201 | 1,290 | + 7.4 | + 12.8 | 2,599 | 2,542 | – 2.2 | + 3.5 |
| Changes in sales1 | ||||||||
| Volume | – 4.3% | + 10.8% | + 3.4% | + 0.9% | ||||
| Price | + 2.4% | + 2.0% | + 2.3% | + 2.6% | ||||
| Currency | – 2.3% | – 6.4% | – 1.2% | – 6.7% | ||||
| Portfolio | – 12.5% | + 1.0% | – 12.9% | + 1.0% | ||||
| Sales by region | ||||||||
| Europe / Middle East / Africa | 384 | 419 | + 9.1 | + 13.5 | 874 | 852 | – 2.5 | + 2.3 |
| North America | 485 | 503 | + 3.7 | + 9.7 | 1,068 | 973 | – 8.9 | – 3.6 |
| Asia / Pacific | 196 | 214 | + 9.2 | + 10.0 | 388 | 423 | + 9.0 | + 10.5 |
| Latin America | 136 | 154 | + 13.2 | + 25.4 | 269 | 294 | + 9.3 | + 25.5 |
| EBITDA1 | 243 | 269 | + 10.7 | 533 | 555 | + 4.1 | ||
| Special items1 | (11) | (9) | (22) | (15) | ||||
| EBITDA before special items1 | 254 | 278 | + 9.4 | 555 | 570 | + 2.7 | ||
| EBITDA margin before special items1 | 21.1% | 21.6% | 21.4% | 22.4% | ||||
| EBIT1 | 162 | 187 | + 15.4 | 425 | 388 | – 8.7 | ||
| Special items1 | (11) | (8) | 32 | (14) | ||||
| EBIT before special items1 | 173 | 195 | + 12.7 | 393 | 402 | + 2.3 | ||
| Net cash provided by operating activities |
386 | 165 | – 57.3 | 533 | 406 | – 23.8 | ||
| Cash flow-relevant capital expenditures |
24 | 43 | + 79.2 | 51 | 67 | + 31.4 | ||
| Research and development expenses | 46 | 47 | + 2.2 | 96 | 92 | – 4.2 | ||
Fx & p adj. = currency- and portfolio-adjusted
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
Sales at Consumer Health increased by a substantial 12.8% (Fx & portfolio adj.) to €1,290 million in the second quarter of 2021, with growth in all regions and categories. After the prior-year period had seen a slight decline in sales due to destocking by retailers and consumers, business in this quarter benefited primarily from continued high demand in Nutritionals as well as a strong allergy season in North America.
| Change %1 | Change %1 | ||||||
|---|---|---|---|---|---|---|---|
| Q2 2020 | Q2 2021 | Reported | Fx & p adj. | H1 2020 | H1 2021 | Reported | Fx & p adj. |
| 1,201 | 1,290 | + 7.4 | + 12.8 | 2,599 | 2,542 | – 2.2 | + 3.5 |
| 318 | 357 | + 12.3 | + 15.7 | 669 | 710 | + 6.1 | + 9.9 |
| 225 | 244 | + 8.4 | + 15.8 | 586 | 479 | – 18.3 | – 12.5 |
| 281 | 288 | + 2.5 | + 6.3 | 559 | 568 | + 1.6 | + 6.4 |
| 193 | 198 | + 2.6 | + 12.3 | 407 | 389 | – 4.4 | + 5.8 |
| 171 | 185 | + 8.2 | + 14.2 | 352 | 363 | + 3.1 | + 9.2 |
| 13 | 18 | + 38.5 | + 14.3 | 26 | 33 | + 26.9 | + 22.5 |
Fx & p adj. = currency- and portfolio-adjusted
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
EBITDA before special items increased significantly in the second quarter of 2020, rising 9.4% to €278 million (Q2 2020: €254 million). As a result, the EBITDA margin before special items improved by 0.5 percentage points to 21.6%. The growth in earnings was primarily driven by our strong business performance and continuous cost management efforts. By contrast, earnings were diminished by investments in marketing as part of new product launches and by negative currency effects of €20 million.
EBIT amounted to €187 million (Q2 2020: €162 million) after special charges of €8 million that related to restructuring measures (Q2 2020: €11 million).
| A 12 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Special Items1 Consumer Health | ||||||||
| € million | EBIT Q2 2020 |
EBIT Q2 2021 |
EBIT H1 2020 |
EBIT H1 2021 |
EBITDA Q2 2020 |
EBITDA Q2 2021 |
EBITDA H1 2020 |
EBITDA H1 2021 |
| Restructuring | (11) | (8) | (22) | (14) | (11) | (9) | (22) | (15) |
| Impairment losses / loss reversals | – | – | 54 | – | – | – | – | – |
| Total special items | (11) | (8) | 32 | (14) | (11) | (9) | (22) | (15) |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
Sales at Consumer Health increased by 3.5% (Fx & portfolio adj.) to €2,542 million in the first six months of 2021, continuing the growth momentum from the previous year. We registered substantial gains primarily as a result of the continued high demand for products in the Nutritionals category. Sales were also boosted by product line extensions for brands such as Bepanthen™, for daily treatment of dry skin, and Aleve™, with our entry into the segment for topical pain relief. In the Allergy & Cold category, the increase in sales due to the strong allergy season in North America only partly offset the substantial declines for cough and cold products as a result of the increased protective and hygiene measures.
EBITDA before special items increased to €570 million in the first half of 2021 (H1 2020: €555 million), while the EBITDA margin before special items improved significantly, rising by 1.0 percentage points to 22.4%. The growth in earnings was mainly driven by the positive development of business, our continuous cost management efforts and one-time gains from the sale of noncore brands. Earnings were diminished by currency effects of €46 million.
EBIT amounted to €388 million (H1 2020: €425 million) after special charges of €14 million that related to restructuring measures (H1 2020: net special gains of €32 million).
| A 13 | |||
|---|---|---|---|
| Q2 2020 | Q2 2021 | H1 2020 | H1 2021 |
| 2,251 | 1,997 | 2,062 | (768) |
| 163 | – | 123 | – |
| 2,414 | 1,997 | 2,185 | (768) |
| (421) | 447 | (1,019) | 4,392 |
| (1,126) | (4,603) | (1,090) | (4,490) |
| 867 | (2,159) | 76 | (866) |
| 2,319 | 5,550 | 3,185 | 4,191 |
| (31) | (2) | (106) | 64 |
| 3,155 | 3,389 | 3,155 | 3,389 |
| Dec. 31, 2020 |
March 31, 2021 |
June 30, 2021 |
Change vs March 31 (%) |
|---|---|---|---|
| 36,745 | 40,878 | 38,423 | – 6.0 |
| 4,532 | 4,534 | 4,535 | 0.0 |
| 3,671 | 639 | 620 | – 3.0 |
| 1,137 | 1,148 | 1,120 | – 2.4 |
| 136 | 74 | 149 | + 101.4 |
| 77 | 126 | 60 | – 52.4 |
| (141) | (215) | (183) | – 14.9 |
| 41,625 | 42,650 | 40,189 | – 5.8 |
| (4,191) | (5,550) | (3,389) | – 38.9 |
| (7,393) | (3,167) | (2,439) | – 23.0 |
| 30,041 | 33,933 | 34,361 | + 1.3 |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
2 Classified as debt according to IFRS
3 Including both financial and nonfinancial liabilities
4 Including the market values of interest-rate and currency hedges of recorded transactions
5 Including short-term receivables with maturities between 3 and 12 months outstanding from banks and other companies, financial investments in debt, and equity instruments that were recorded as current on first-time recognition
| Rating | |||
|---|---|---|---|
| Rating agency | Long-term rating |
Short-term rating |
Outlook |
| S&P Global Ratings | BBB | A2 | stable |
| Moody's | Baa2 | P2 | stable |
| Fitch Ratings | BBB+ | F2 | stable |
A 14
A 15
| Dec. 31, 2020 |
March 31, 2021 |
June 30, 2021 |
Change vs. March 31 (%) |
|---|---|---|---|
| 81,386 | 82,980 | 81,976 | – 1.2 |
| 113 | 135 | 32 | – 76.3 |
| 35,547 | 35,662 | 32,419 | – 9.1 |
| 35,660 | 35,797 | 32,451 | – 9.3 |
| 117,046 | 118,777 | 114,427 | – 3.7 |
| 30,699 | 34,772 | 30,578 | – 12.1 |
| 49,619 | 55,073 | 55,923 | + 1.5 |
| 36,728 | 28,932 | 27,926 | – 3.5 |
| 86,347 | 84,005 | 83,849 | – 0.2 |
| 117,046 | 118,777 | 114,427 | – 3.7 |
// Between March 31, 2021, and June 20, 2021, total assets decreased by €4.4 billion to €114.4 billion.
In February, we announced a global platform agreement with the German company Horsch, a manufacturer of on-farm technology. As a result, farmers around the world will have new ways to connect their Horsch seeders, planters and other implements to our Climate FieldView™ platform, making it easier for them to apply digital tools and data science on their farming operations.
In April, we announced a collaboration with the French company RAGT. We intend to work together to advance the development of hybrid wheat technology and provide an innovative wheat-growing system by combining our leading position in wheat crop protection, expertise in seed production systems and digital solutions in agriculture with RAGT's wide range of varietal seed innovations.
Also in April, we announced a collaboration with U.S.-based Kebotix to equip farmers with innovative crop protection tools powered by faster data-driven systems. Kebotix uses artificial intelligence and robotics to accelerate the discovery of new chemicals. Those discoveries can then be used by our researchers to develop new crop protection solutions.
We regularly review our research and development pipeline so that we can give priority to advancing the most promising pharmaceutical projects.
The following table shows our most important drug candidates currently in Phase II of clinical testing:
| Research and Development Projects (Phase II)1 | |
|---|---|
| Project | Indication |
| Adrenomedullin Pegol (BAY 1097761, PEG-ADM inhale) | Acute respiratory syndrome |
| Asundexian (BAY 2433334, FXIa inhibitor) | Prevention of stroke in atrial fibrillation patients |
| Asundexian (BAY 2433334, FXIa inhibitor) | Secondary prevention of stroke |
| Asundexian (BAY 2433334, FXIa inhibitor) | Prevention of major adverse cardiac events (MACE) |
| BAY 1747846 (high relaxivity contrast agent) | Magnetic resonance imaging |
| BAY 2586116 (task channel blocker) | Obstructive sleep apnea |
| BAY 2976217 (FXI LICA, IONIS-FXI-LRX) 2 |
Prevention of thrombosis in end-stage renal disease (ESRD) |
| Eliapixant (BAY 1817080, P2X3 antagonist) | Chronic cough |
| Eliapixant (BAY 1817080, P2X3 antagonist) | Overactive bladder |
| Eliapixant (BAY 1817080, P2X3 antagonist) | Endometriosis |
| Eliapixant (BAY 1817080, P2X3 antagonist) | Neuropathic pain |
| Elinzanetant (neurokinin-1,3 receptor antagonist) | Vasomotor symptoms |
| Osocimab (anti-FXIa antibody) | Prevention of thrombosis in end-stage renal disease (ESRD) |
| Pecavaptan (dual vasopressin receptor antagonist) | Congestive heart failure |
| Regorafenib + nivolumab combination3 | Metastatic colorectal cancer |
| Regorafenib + nivolumab combination3 | Recurrent or metastatic solid tumors |
| Regorafenib + pembrolizumab combination | Second-line therapy of unresectable hepatocellular carcinoma |
| Rogaratinib (pan-FGFR inhibitor) | Urothelial cancer |
| Runcaciguat (sGC activator) | Chronic kidney disease |
| Runcaciguat (sGC aktivator) | Nonproliferative diabetic retinopathy |
1 As of July 15, 2021
2 In collaboration with Ionis Pharmaceuticals, Inc., United States
3 In collaboration with Bristol-Myers Squibb, United States, and Ono Pharmaceutical Co., Ltd., Japan
The following table shows our most important drug candidates currently in Phase III of clinical testing:
| A 18 | |
|---|---|
| Research and Development Projects (Phase III)1 | |
| Project | Indication |
| Aflibercept (VEGF inhibitor)2 | Retinopathy of prematurity |
| High-dose aflibercept (VEGF inhibitor)2 | Diabetic macular edema (DME) |
| High-dose aflibercept (VEGF inhibitor)2 | Neovascular age-related macular degeneration (nAMD) |
| Copanlisib (PI3K inhibitor) + chemotherapy combination | Second-line therapy of indolent non-Hodgkin lymphoma (iNHL) |
| Darolutamide (ODM-201, AR antagonist) | Hormone-sensitive metastatic prostate cancer |
| Darolutamide (ODM-201, AR antagonist) | Adjuvant treatment for localized prostate cancer with very high risk of recurrence |
| Finerenone (MR antagonist) | Heart failure with mid-range or preserved ejection fraction |
| Regorafenib (multikinase inhibitor) | Newly diagnosed or recurrent glioblastoma |
1 As of July 15, 2021
2 In collaboration with Regeneron Pharmaceuticals, Inc., United States
The nature of drug discovery and development is such that not all compounds can be expected to meet the predefined project goals. It is possible that any or all of the projects listed above may have to be discontinued due to scientific and / or commercial reasons and will not result in commercialized products. It is also possible that the requisite U.S. Food and Drug Administration (FDA), European Medicines Agency (EMA) or other regulatory approvals will not be granted for these compounds. Moreover, we regularly review our research and development pipeline so that we can give priority to advancing the most promising pharmaceutical projects.
The following material developments occurred in the first half of 2021:
// We published results from the Phase III FIGARO-DKD trial evaluating the efficacy and safety of the investigational drug finerenone versus placebo when added to standard of care in patients with chronic kidney disease and type 2 diabetes. The results of the trial, which met its primary endpoint, show that finerenone significantly reduced the combined risk of time to first occurrence of cardiovascular death or nonfatal cardiovascular events (nonfatal myocardial infarction, nonfatal stroke, or heart failure hospitalization).
// In February, we began enrolling patients in the Phase III ARANOTE trial evaluating the efficacy and safety of darolutamide plus androgen deprivation therapy (ADT) in comparison to placebo plus ADT in men with metastatic hormone-sensitive prostate cancer.
// In April, we decided to discontinue the further development of the Combi IUS LNG/IND program. This will enable us to use our resources efficiently and remain focused on impactful innovations addressing women's healthcare needs. Combi IUS was a new intrauterine system (IUS) that combined levonorgestrel (LNG) and indomethacin (IND) for five-year contraception and had completed Phase II development.
// In March, we decided to halt the development of the chymase inhibitor fulacimstat in the indication chronic kidney disease as the criteria in the Phase II proof-of-concept trial had not been met.
The most important drug candidates in the approval process are:
| Main Products Submitted for Approval1 | ||
|---|---|---|
| Project | Region | Indication |
| Copanlisib (PI3K inhibitor) + rituximab combination | EU, U.S.A., Japan | Second-line therapy of indolent non-Hodgkin lymphoma (NHL) |
| Finerenone (MR antagonist) | EU, Japan, China | Chronic kidney disease in patients with type 2 diabetes |
| Larotrectinib (LOXO-101, TRK fusion inhibitor) | China | Solid tumors with NTRK gene fusions |
| Rivaroxaban (FXa inhibitor) | U.S.A., China | VTE treatment in children |
| EU2, U.S.A., China | Peripheral artery disease (PAD) | |
| Vericiguat (sGC stimulator)3 | China | Heart failure with reduced ejection fraction (HFrEF) |
1 As of July 21, 2021
2 Submission of data from an additional Phase III study
3 Co-development with Merck & Co., Inc., United States
// In July, the U.S. Food and Drug Administration approved finerenone under the brand name Kerendia™ to reduce the risk of sustained estimated glomerular filtration rate decline, end-stage kidney disease, cardiovascular death, nonfatal myocardial infarction and heart failure hospitalization in adult patients with chronic kidney disease and type 2 diabetes.
// In January, the Japanese Ministry of Health, Labour and Welfare (MHLW) granted regulatory approval for the oral Factor Xa inhibitor rivaroxaban (Xarelto™) in the treatment of venous thromboembolism (VTE) including catheter-related thrombosis and cerebral venous sinus thrombosis and for the prevention of recurrent VTE in pediatric patients. The suspension for oral administration was likewise approved. This means that rivaroxaban, which is already routinely used in adult patients with VTE, is now the first oral Factor Xa inhibitor to be licensed for the treatment and prevention of recurrent VTE in children.
// In March, the Japanese Ministry of Health, Labor and Welfare granted marketing authorization for the precision oncology drug Vitrakvi™ (active ingredient: larotrectinib) for the treatment of neurotrophic tyrosine receptor kinase (NTRK) fusion-positive advanced or recurrent solid tumors. Larotrectinib is a highly selective TRK inhibitor exclusively designed to treat tumors that have developed an NTRK gene fusion.
// In January, the Japanese health authorities granted us regulatory approval for molidustat, a new therapeutic option for renal anemia.
Cell and gene therapies are the next step in the evolution of drug development. They address the root cause of disease and are geared toward preventing, treating and potentially even curing illnesses. That applies not only to rare genetic diseases but also to more common diseases such as certain immune disorders, cancer and degenerative diseases.
Our aim is to further broaden our long-term innovation strategy by investing in this area. Our strategy goes well beyond single investments or individual assets – instead, we invest holistically in entire fields of technology, so-called technology platforms. This enables a better understanding, more flexible optimization and promising development of new therapies, and will also speed up the development of individual products, giving Bayer a competitive edge. We are therefore focused on establishing four technology platforms: induced pluripotent stem cell (iPSC) therapy, adeno-associated virus (AAV) gene therapy, oncological cell therapies and gene editing. Combining our internal capabilities and expertise with external collaborations and acquisitions is the cornerstone of our new cell and gene therapy strategy. Examples of this include the acquisition of BlueRock Therapeutics and AskBio, as well as the strategic partnership with Atara Biotherapeutics, Inc.
Our development portfolio already comprises seven candidates in various stages of clinical development that cover several therapeutic areas with a high unmet medical need – with leading programs in Parkinson's disease, Pompe disease, hemophilia A and congestive heart failure.
We also achieved the following milestones in the first half of 2021:
// In June, a Phase I study was initiated by BlueRock for the treatment of Parkinson's disease patients using pluripotent stem cell-derived dopaminergic neurons. In July, the U.S. Food and Drug Administration (FDA) granted Fast Track designation for this therapy. That status enables the accelerated development and subsequent marketing authorization process for therapies of significant medical interest.
As previously described, we concluded an agreement in June to acquire Noria Therapeutics Inc. and PSMA Therapeutics Inc.
In August, we announced the acquisition of Vividion Therapeutics, Inc., as detailed earlier in this report.
In the first half of the year, we launched AleveX™ in North America, representing Bayer's first products in the topical pain relief segment. The topical treatments added to the portfolio come in three presentations: a massage roller, a lotion and a fast-drying spray.
During the first six months of the year, we also launched the Bepanthen™ Derma range for daily treatment of dry and sensitive skin in several countries, including Brazil, Turkey and Greece. The range is based on a unique derma repair complex of five ingredients, and treats the causes of dry skin by regenerating skin from within. The range includes a number of cleansing and care products. We will launch the range in additional countries over the course of this year.
In May, our impact investment unit Leaps by Bayer participated in a Series B financing round in the Berlin-based digital health company Ada Health GmbH. Ada Health combines medical knowledge with powerful artificial intelligence to revolutionize possibilities for personal health. The investment will support the advancement of Ada's symptom assessment and care navigation platform.
3.1.1 Economic Outlook
| A 20 | |||
|---|---|---|---|
| Economic Outlook1 | Growth 2020 |
Growth forecast 2021 |
|
| World | – 3.5% | + 5.8% | |
| European Union2 | – 6.1% | + 4.9% | |
| of which Germany | – 5.1% | + 3.8% | |
| United States | – 3.5% | + 6.6% | |
| Emerging Markets3 | – 1.6% | + 6.5% |
1 Real GDP growth, source: IHS Markit (as of July 2021)
2 EU excluding United Kingdom, 2020 figures restated
3 Including about 50 countries defined by IHS Markit as Emerging Markets in line with the World Bank
The global economy is recovering faster than was expected at the beginning of the year. The number of people vaccinated against COVID-19 is increasing, protective measures and contact restrictions are being relaxed, labor market conditions are improving, and private consumption is picking up again. Companies are also investing more in view of rising demand and favorable financing conditions. The pace of the upswing has been especially brisk in the United States, but a strong recovery is also expected in Europe.
The same applies to the Emerging Markets, and particularly China. At the same time, COVID-19 outbreaks like the one in India and the fourth waves looming in many other countries show that setbacks can be expected at any time. The economic outlook therefore remains clouded with significant uncertainty.
| Growth 2020 |
Growth forecast 2021 |
|
|---|---|---|
| Seed and crop protection market1 | + 4% | + 5% |
| Pharmaceuticals market2 | + 3% | + 5% |
| Consumer health market3 | + 4% | + 2% |
1 Bayer's estimate (as of July 2021)
2 Source: IQVIA Market Prognosis (as of May 2021), all rights reserved; currency-adjusted
3 Source for outlook: Bayer's estimate (as of July 2021), taking into account external sources; currency-adjusted
We now expect increased growth of 5% (previously: +2%) in the seed and crop protection market for 2021, mainly due to global demand for corn and soybeans remaining strong, leading to an expected increase in planted acres, particularly in Latin America. We also foresee higher prices for nonselective herbicides.
We continue to expect the pharmaceuticals market to expand by around 5%.
In the consumer health market, we continue to anticipate growth of around 2% for 2021. The development of the market remains volatile and is heavily dependent on the trajectory of the global pandemic. The potential continuation of increased protective and hygiene measures in the second half of the year will impact the cough and cold segment in particular.
Following the good business performance in the first half of 2021, we are also optimistic for the remainder of the year and are raising our guidance accordingly. This upgraded guidance was prepared using the closing rates on June 30, 2021. A 1% appreciation (depreciation) of the euro against all other currencies would decrease (increase) sales on an annual basis by some €350 million and EBITDA before special items by about €100 million.
For fiscal 2021, we now expect to generate sales of approximately €43 billion (previously: approximately €41 billion). This now corresponds to an increase of approximately 6% on a currency- and portfolioadjusted basis (previously: approximately 3%). We are now targeting an EBITDA margin before special items of approximately 25% (previously: approximately 26%). Based on the aforementioned sales figure, this would now correspond to EBITDA before special items of €10.6 billion to €10.9 billion (previously: €10.5 billion to €10.8 billion). We now expect core earnings per share to come in at approximately €6.00 to €6.20 (previously: approximately €5.60 to €5.80).
To enhance the comparability of operating performance, we are presenting our forecast on a currencyadjusted basis as well.
We now expect to post currency-adjusted sales of approximately €44 billion (previously: approximately €42 billion to €43 billion). This now corresponds to an increase of around 6% on a currency- and portfolioadjusted basis (previously: about 3%). We now expect to generate an EBITDA margin before special items of around 26% on a currency-adjusted basis (previously: around 27%). Based on the currency-adjusted sales forecast, this would continue to correspond to EBITDA before special items of €11.2 billion to €11.5 billion on a currency-adjusted basis. We now anticipate core earnings per share of approximately €6.40 to €6.60 on a currency-adjusted basis (previously: approximately €6.10 to €6.30).
| Forecast for 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Original forecast for 2021 at closing rates on Dec. 31, 2020 |
Revised forecast for 2021 at closing rates on June 30, 2021 |
Original currency-adjusted forecast for 2021 |
Revised currency adjusted forecast for 2021 |
|||||
| € billion | Fx & p adj. change (%) |
€ billion | Fx & p adj. change (%) |
€ billion | Fx & p adj. change (%) |
€ billion | Fx & p adj. change (%) |
|
| Sales | ~ 41 | ~ +3 | ~ 43 | ~ +6 | ~ 42 to 43 | ~ +3 | ~ 44 | ~ +6 |
| Crop Science | ~ +2 | ~ +7 | ~ +2 | ~ +7 | ||||
| Pharmaceuticals | ~ +4 | ~ +6 | ~ +4 | ~ +6 | ||||
| Consumer Health | ~ +2 to 3 | ~ +3 to 4 | ~ +2 to 3 | ~ +3 to 4 | ||||
| Margin (%) | Margin (%) | Margin (%) | Margin (%) | |||||
| EBITDA before special items1 | ~ 26 | ~ 25 | ~ 27 | ~ 26 | ||||
| Crop Science | ~ 23 | ~ 23 | ~ 24 | ~ 24 | ||||
| Pharmaceuticals | ~ 32 | ~ 32 | ~ 32 | ~ 32 | ||||
| Consumer Health | ~ 22 to 23 | ~ 22 to 23 | ~ 23 | ~ 22 to 23 | ||||
| Financial result (core)2 | – 1.5 | – 1.3 | – 1.6 | – 1.3 | ||||
| Tax rate (core)3 | 23.0% | 23.0% | 23.0% | 23.0% | ||||
| Free cash flow1 | ~ – 3 to –4 | ~ – 2 to – 3 | ~ – 3 to –4 | ~ – 2 to – 3 | ||||
| Net financial debt1 | ~ 35 to 36 | ~ 35 | ~ 36 to 37 | ~ 36 | ||||
| Special items in EBIT1 | – 1.5 | ~ – 4.8 | – 1.5 | ~ – 4.8 | ||||
| € | € | € | € | |||||
| Core earnings per share1 | 5.60 to 5.80 | 6.00 to 6.20 | 6.10 to 6.30 | 6.40 to 6.60 |
Fx & p adj. = currency- and portfolio-adjusted
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
2 Financial result before special items
3 (Income taxes + special items in income taxes + tax effects on adjustments) / (core EBIT + financial result + special items in financial result)
We now plan to take total special charges (currency-adjusted) of approximately €4.8 billion (previously: about €1.5 billion) in 2021 in connection with provisions for litigations as well as restructuring and integration measures.
Potential estimation risks regarding special charges in connection with litigations are referenced in the 2020 Annual Report, A 3.2 Opportunity and Risk Report.
As a global enterprise with a diversified portfolio, the Bayer Group is exposed to a wide range of internal or external developments or events that could significantly impact the achievement of our financial and nonfinancial objectives.
Opportunity and risk management at Bayer forms an integral part of the Group-wide corporate governance system. Our opportunity and risk management process and the fundamental opportunity and risk status are outlined in detail in the Annual Report 2020, A 3.2 "Opportunity and Risk Report."
We currently have not identified any material changes in the risk situation compared with the assessment given in the 2020 Annual Report. We currently are not aware of any individual risks, risk combinations or risk interdependencies that could endanger the Bayer Group's continued existence.
Significant developments that have occurred in respect of the legal risks since publication of the Bayer Annual Report 2020 (Note [30] to the Consolidated Financial Statements) are described in the Notes to the Condensed Consolidated Interim Financial Statements under "Legal Risks."
A 22
26
| B 1 | ||||
|---|---|---|---|---|
| € million | Q2 2020 | Q2 2021 | H1 2020 | H1 2021 |
| Net sales | 10,054 | 10,854 | 22,899 | 23,182 |
| Cost of goods sold | (4,018) | (4,546) | (8,674) | (9,244) |
| Gross profit | 6,036 | 6,308 | 14,225 | 13,938 |
| Selling expenses | (2,907) | (2,964) | (5,930) | (5,843) |
| Research and development expenses | (1,167) | (1,638) | (2,469) | (2,836) |
| General administration expenses | (769) | (783) | (1,583) | (1,425) |
| Other operating income | 299 | 537 | 722 | 887 |
| Other operating expenses | (12,276) | (3,741) | (13,250) | (3,919) |
| EBIT1 | (10,784) | (2,281) | (8,285) | 802 |
| Equity-method income (loss) | (16) | 105 | (24) | 79 |
| Financial income | 44 | 271 | 80 | 369 |
| Financial expenses | (304) | (475) | (984) | (895) |
| Financial result | (276) | (99) | (928) | (447) |
| Income before income taxes | (11,060) | (2,380) | (9,213) | 355 |
| Income taxes | 1,450 | 52 | 971 | (593) |
| Income from continuing operations after income taxes | (9,610) | (2,328) | (8,242) | (238) |
| of which attributable to noncontrolling interest | 9 | 7 | 8 | 8 |
| of which attributable to Bayer AG stockholders | (9,619) | (2,335) | (8,250) | (246) |
| Income from discontinued operations after income taxes | 71 | – | 191 | – |
| of which attributable to noncontrolling interest | – | – | – | – |
| of which attributable to Bayer AG stockholders | 71 | – | 191 | – |
| Income after income taxes | (9,539) | (2,328) | (8,051) | (238) |
| of which attributable to noncontrolling interest | 9 | 7 | 8 | 8 |
| of which attributable to Bayer AG stockholders (net income) | (9,548) | (2,335) | (8,059) | (246) |
| € | ||||
| Earnings per share | ||||
| From continuing operations | ||||
| Basic | (9.79) | (2.38) | (8.40) | (0.25) |
| Diluted | (9.79) | (2.38) | (8.40) | (0.25) |
| From discontinued operations | ||||
| Basic | 0.07 | – | (0.20) | – |
| Diluted | 0.07 | – | (0.20) | – |
| From continuing and discontinued operations | ||||
| Basic | (9.72) | (2.38) | (8.20) | (0.25) |
| Diluted | (9.72) | (2.38) | (8.20) | (0.25) |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
| € million | Q2 2020 | Q2 2021 | H1 2020 | H1 2021 |
|---|---|---|---|---|
| Income after income taxes | (9,539) | (2,328) | (8,051) | (238) |
| of which attributable to noncontrolling interest | 9 | 7 | 8 | 8 |
| of which attributable to Bayer AG stockholders | (9,548) | (2,335) | (8,059) | (246) |
| Remeasurements of the net defined benefit liability for post-employment benefit plans |
238 | 50 | 905 | 1,128 |
| Income taxes | (25) | (4) | (312) | (312) |
| Other comprehensive income from remeasurements of the net defined benefit liability for post-employment benefit plans |
213 | 46 | 593 | 816 |
| Changes in the fair value of equity instruments measured at fair value |
34 | 135 | (6) | 212 |
| Income taxes | (3) | (4) | (3) | (4) |
| Other comprehensive income from equity instruments measured at fair value |
31 | 131 | (9) | 208 |
| Other comprehensive income relating to associates accounted for using the equity method |
– | 25 | – | 25 |
| Other comprehensive income that will not be reclassified subsequently to profit or loss |
244 | 202 | 584 | 1,049 |
| Changes in the fair value of cash flow hedges | 140 | (62) | 38 | (13) |
| Reclassified to profit or loss | (112) | 5 | 21 | (50) |
| Income taxes | (3) | 20 | (11) | 20 |
| Other comprehensive income from cash flow hedges | 25 | (37) | 48 | (43) |
| Changes in time value of options used as hedging instrument | – | – | – | (2) |
| Income taxes | – | – | – | 1 |
| Other comprehensive income from time value of options | – | – | – | (1) |
| Other comprehensive income from exchange differences | (880) | (68) | (1,384) | 1,076 |
| Other comprehensive income relating to associates accounted for using the equity method |
– | (4) | – | (2) |
| Other comprehensive income that may be reclassified subsequently to profit or loss |
(855) | (109) | (1,336) | 1,030 |
| Total other comprehensive income1 | (611) | 93 | (752) | 2,079 |
| of which attributable to noncontrolling interest | (5) | (6) | (13) | 3 |
| of which attributable to Bayer AG stockholders | (606) | 99 | (739) | 2,076 |
| Total comprehensive income | (10,150) | (2,235) | (8,803) | 1,841 |
| of which attributable to noncontrolling interest | 4 | 1 | (5) | 11 |
| of which attributable to Bayer AG stockholders | (10,154) | (2,236) | (8,798) | 1,830 |
1 Other comprehensive income is recognized outside profit or loss in equity.
B 3
28
| € million | June 30, 2020 |
Dec. 31, 2020 |
June 30, 2021 |
|---|---|---|---|
| Noncurrent assets | |||
| Goodwill | 38,652 | 36,080 | 36,965 |
| Other intangible assets | 33,722 | 26,029 | 25,308 |
| Property, plant and equipment | 11,850 | 11,710 | 11,830 |
| Investments accounted for using the equity method | 524 | 491 | 576 |
| Other financial assets | 1,498 | 1,555 | 1,625 |
| Other receivables | 745 | 835 | 1,199 |
| Deferred taxes | 3,925 | 4,686 | 4,473 |
| 90,916 | 81,386 | 81,976 | |
| Current assets | |||
| Inventories | 10,128 | 10,961 | 10,125 |
| Trade accounts receivable | 13,103 | 9,555 | 13,075 |
| Other financial assets | 2,560 | 7,940 | 3,109 |
| Other receivables | 1,465 | 1,667 | 1,539 |
| Claims for income tax refunds | 1,155 | 1,233 | 1,182 |
| Cash and cash equivalents | 3,148 | 4,191 | 3,389 |
| Assets held for sale | 1,192 | 113 | 32 |
| 32,751 | 35,660 | 32,451 | |
| Total assets | 123,667 | 117,046 | 114,427 |
| Equity | |||
| Capital stock | 2,515 | 2,515 | 2,515 |
| Capital reserves | 18,261 | 18,261 | 18,261 |
| Other reserves | 14,928 | 9,748 | 9,613 |
| Equity attributable to Bayer AG stockholders | 35,704 | 30,524 | 30,389 |
| Equity attributable to noncontrolling interest | 162 | 175 | 189 |
| 35,866 | 30,699 | 30,578 | |
| Noncurrent liabilities | |||
| Provisions for pensions and other post-employment benefits | 7,390 | 8,454 | 7,512 |
| Other provisions | 5,108 | 4,322 | 7,262 |
| Refund liabilities | 142 | 8 | 142 |
| Contract liabilities | 647 | 720 | 650 |
| Financial liabilities | 33,947 | 33,196 | 36,664 |
| Income tax liabilities | 1,644 | 247 | 1,638 |
| Other liabilities | 525 | 1,341 | 1,215 |
| Deferred taxes | 1,855 | 1,331 | 840 |
| Current liabilities | 51,258 | 49,619 | 55,923 |
| Other provisions | 13,714 | 10,127 | 7,967 |
| Refund liabilities Contract liabilities |
6,378 787 |
4,455 3,592 |
6,877 |
| 1,303 | |||
| Financial liabilities | 7,372 | 8,570 | 3,708 |
| Trade accounts payable | 5,098 | 5,683 | 5,118 |
| Income tax liabilities | 835 | 2,269 | 905 |
| Other liabilities | 1,823 | 2,032 | 2,048 |
| Liabilities directly related to assets held for sale | 536 | – | – |
| 36,543 | 36,728 | 27,926 | |
| Total equity and liabilities | 123,667 | 117,046 | 114,427 |
2020 figures restated
B 4
| € million | Q2 2020 | Q2 2021 | H1 2020 | H1 2021 |
|---|---|---|---|---|
| Income from continuing operations after income taxes | (9,610) | (2,328) | (8,242) | (238) |
| Income taxes | (1,450) | (52) | (971) | 593 |
| Financial result | 276 | 99 | 928 | 447 |
| Income taxes paid | (314) | (687) | (289) | (1,140) |
| Depreciation, amortization and impairment losses (loss reversals) | 1,180 | 1,390 | 2,457 | 2,476 |
| Change in pension provisions | (78) | (70) | (144) | (185) |
| (Gains) losses on retirements of noncurrent assets | (12) | (104) | (4) | (119) |
| Decrease (increase) in inventories | (177) | 308 | 219 | 841 |
| Decrease (increase) in trade accounts receivable | 915 | (64) | (2,034) | (3,335) |
| (Decrease) increase in trade accounts payable | (184) | (63) | (1,256) | (680) |
| Changes in other working capital, other noncash items | 11,705 | 3,568 | 11,398 | 572 |
| Net cash provided by (used in) operating activities from continuing operations |
2,251 | 1,997 | 2,062 | (768) |
| Net cash provided by (used in) operating activities | ||||
| from discontinued operations | 163 | – | 123 | – |
| Net cash provided by (used in) operating activities | 2,414 | 1,997 | 2,185 | (768) |
| Cash outflows for additions to property, plant, equipment and intangible assets |
(585) | (493) | (976) | (822) |
| Cash inflows from the sale of property, plant, equipment and other assets | 82 | 115 | 121 | 272 |
| Cash outflows for divestments less divested cash | (62) | – | (65) | (57) |
| Cash inflows from noncurrent financial assets | 114 | 4 | 321 | 357 |
| Cash outflows for noncurrent financial assets | (50) | (121) | (77) | (267) |
| Cash outflows for acquisitions less acquired cash | – | (19) | (106) | (23) |
| Interest and dividends received | 14 | 31 | 37 | 41 |
| Cash inflows from (outflows for) current financial assets | 66 | 930 | (274) | 4,891 |
| Net cash provided by (used in) investing activities | (421) | 447 | (1,019) | 4,392 |
| Dividend payments | (2,751) | (1,965) | (2,751) | (1,965) |
| Issuances of debt | 3,276 | 282 | 4,731 | 4,495 |
| Retirements of debt | (1,210) | (2,537) | (2,433) | (6,495) |
| Interest paid including interest-rate swaps | (448) | (391) | (654) | (547) |
| Interest received from interest-rate swaps | 7 | 8 | 17 | 22 |
| Net cash provided by (used in) financing activities | (1,126) | (4,603) | (1,090) | (4,490) |
| Change in cash and cash equivalents due to business activities | 867 | (2,159) | 76 | (866) |
| Cash and cash equivalents at beginning of period | 2,319 | 5,550 | 3,185 | 4,191 |
| Change in cash and cash equivalents due to changes in scope of consolidation |
– | – | (7) | – |
| Change in cash and cash equivalents due to exchange rate movements | (31) | (2) | (99) | 64 |
| Cash and cash equivalents at end of period | 3,155 | 3,389 | 3,155 | 3,389 |
| € million | Capital stock | Capital reserves |
Other reserves |
Equity attributable to Bayer AG stockholders |
Equity attributable to non controlling interest |
Equity |
|---|---|---|---|---|---|---|
| Jan. 1, 2020 | 2,515 | 18,261 | 26,477 | 47,253 | 180 | 47,433 |
| Equity transactions with owners | ||||||
| Dividend payments | (2,751) | (2,751) | (14) | (2,765) | ||
| Other changes | 1 | 1 | ||||
| Total comprehensive income | (8,798) | (8,798) | (5) | (8,803) | ||
| June 30, 2020 | 2,515 | 18,261 | 14,928 | 35,704 | 162 | 35,866 |
| Jan. 1, 2021 | 2,515 | 18,261 | 9,748 | 30,524 | 175 | 30,699 |
| Equity transactions with owners | ||||||
| Dividend payments | (1,965) | (1,965) | – | (1,965) | ||
| Other changes | 3 | 3 | ||||
| Total comprehensive income | 1,830 | 1,830 | 11 | 1,841 | ||
| June 30, 2021 | 2,515 | 18,261 | 9,613 | 30,389 | 189 | 30,578 |
31
B 6
The consolidated interim financial statements as of June 30, 2021, were prepared in condensed form in compliance with IAS 34 according to the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), London, which are endorsed by the European Union, and the Interpretations of the IFRS Interpretations Committee in effect at the closing date.
Reference should be made as appropriate to the Notes to the Consolidated Financial Statements for the 2020 fiscal year, particularly with regard to the main recognition and valuation principles.
The global economy is recovering faster than was expected at the beginning of the year, and the number of people vaccinated against COVID-19 is increasing. In addition, protective measures and contact restrictions are starting to be relaxed. Uncertainties remain, however, with the prospect of further COVID outbreaks as a result of new variants, for instance. In the first half of the year, our Pharmaceuticals Division showed a robust recovery in women's healthcare, ophthalmology and radiology, areas that in the prior year had been hit particularly hard by restrictions introduced in response to the pandemic. In our Consumer Health Division, the increased protective and hygiene measures primarily impacted sales of cough and cold products.
We currently do not see any further material COVID-19 effects. We will continue to closely monitor the effects of the pandemic, including the impact on inventories, customer receivables and significant estimates regarding goodwill and other intangible assets.
Changes in the underlying parameters relate primarily to currency exchange rates and the interest rates used to calculate pension obligations. The exchange rates for major currencies against the euro varied as follows:
| Exchange Rates for Major Currencies | ||||||
|---|---|---|---|---|---|---|
| Closing rate | Average rate | |||||
| €1 | Dec. 31, 2020 |
June 30, 2020 |
June 30, 2021 |
H1 2020 | H1 2021 | |
| BRL | Brazil | 6.37 | 6.09 | 5.90 | 5.33 | 6.49 |
| CAD | Canada | 1.56 | 1.53 | 1.47 | 1.50 | 1.50 |
| CNY | China | 7.98 | 7.92 | 7.69 | 7.76 | 7.80 |
| GBP | United Kingdom | 0.90 | 0.91 | 0.86 | 0.87 | 0.87 |
| JPY | Japan | 126.46 | 120.63 | 131.47 | 119.22 | 129.76 |
| RUB | Russia | 91.46 | 79.56 | 86.75 | 76.19 | 89.58 |
| USD | United States | 1.23 | 1.12 | 1.19 | 1.10 | 1.21 |
Argentina's economy has been considered hyperinflationary since July 1, 2018, and we therefore applied IAS 29 (Financial Reporting in Hyperinflationary Economies) for Bayer S.A., Argentina. The resulting effects in ongoing accounting have so far been immaterial for the Group.
The most important interest rates used to calculate the present value of pension obligations are given below:
| Discount Rate for Pension Obligations | |||
|---|---|---|---|
| % | Dec. 31, 2020 |
March 31, 2021 |
June 30, 2021 |
| Germany | 0.90 | 1.20 | 1.10 |
| United Kingdom | 1.30 | 1.95 | 1.80 |
| United States | 2.50 | 3.10 | 2.70 |
As of June 30, 2021, the Bayer Group comprised the three reportable segments Crop Science, Pharmaceuticals and Consumer Health.
| Key Data by Segment | ||
|---|---|---|
| --------------------- | -- | -- |
| Crop Science | Pharmaceuticals | Consumer Health | ||||
|---|---|---|---|---|---|---|
| € million | Q2 2020 | Q2 2021 | Q2 2020 | Q2 2021 | Q2 2020 | Q2 2021 |
| Net sales (external) | 4,802 | 5,021 | 3,992 | 4,494 | 1,201 | 1,290 |
| Currency- and portfolio-adjusted change1 | + 3.2% | + 10.6% | – 8.8% | + 16.2% | – 1.9% | + 12.8% |
| Intersegment sales | 1 | 3 | 2 | 3 | – | – |
| Net sales (total) | 4,803 | 5,024 | 3,994 | 4,497 | 1,201 | 1,290 |
| EBIT1 | (9,600) | (3,483) | (165) | 1,312 | 162 | 187 |
| EBITDA before special items1 | 1,365 | 1,018 | 1,368 | 1,409 | 254 | 278 |
| Net cash provided by operating activities | 1,537 | 1,734 | 531 | 570 | 386 | 165 |
| Depreciation, amortization, impairment losses / loss reversals |
778 | 987 | 233 | 252 | 81 | 82 |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
| Reconciliation | ||||||
|---|---|---|---|---|---|---|
| € million | All other segments | Enabling functions and consolidation |
Group | |||
| Q2 2020 | Q2 2021 | Q2 2020 | Q2 2021 | Q2 2020 | Q2 2021 | |
| Net sales (external) | 42 | 40 | 17 | 9 | 10,054 | 10,854 |
| Currency- and portfolio-adjusted change1 | – 4.5% | – 16.0% | – | – | – 2.5% | + 12.9% |
| Intersegment sales | 41 | – | (44) | (6) | – | – |
| Net sales (total) | 83 | 40 | (27) | 3 | 10,054 | 10,854 |
| EBIT1 | (10) | 7 | (1,171) | (304) | (10,784) | (2,281) |
| EBITDA before special items1 | 8 | 25 | (112) | (153) | 2,883 | 2,577 |
| Net cash provided by operating activities | 392 | 35 | (595) | (507) | 2,251 | 1,997 |
| Depreciation, amortization, impairment losses / loss reversals |
18 | 18 | 70 | 51 | 1,180 | 1,390 |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
B 7
B 8
B 8 (continued)
| Crop Science | Pharmaceuticals | Consumer Health | |||||
|---|---|---|---|---|---|---|---|
| € million | H1 2020 | H1 2021 | H1 2020 | H1 2021 | H1 2020 | H1 2021 | |
| Net sales (external) | 11,636 | 11,667 | 8,538 | 8,859 | 2,599 | 2,542 | |
| Currency- and portfolio-adjusted change1 | + 4.6% | + 8.1% | – 2.5% | + 7.4% | + 5.7% | + 3.5% | |
| Intersegment sales | 4 | 5 | 2 | 5 | – | – | |
| Net sales (total) | 11,640 | 11,672 | 8,540 | 8,864 | 2,599 | 2,542 | |
| EBIT1 | (8,100) | (1,730) | 924 | 2,681 | 425 | 388 | |
| EBITDA before special items1 | 3,976 | 3,466 | 2,962 | 2,907 | 555 | 570 | |
| Net cash provided by operating activities | (224) | (2,403) | 1,488 | 1,381 | 533 | 406 | |
| Depreciation, amortization, impairment losses / loss reversals |
1,688 | 1,661 | 486 | 511 | 108 | 167 |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
| All other segments | Enabling functions and consolidation |
Group | ||||
|---|---|---|---|---|---|---|
| € million | H1 2020 | H1 2021 | H1 2020 | H1 2021 | H1 2020 | H1 2021 |
| Net sales (external) | 96 | 96 | 30 | 18 | 22,899 | 23,182 |
| Currency- and portfolio-adjusted change1 | + 5.0% | – 9.3% | – | – | + 2.0% | + 7.2% |
| Intersegment sales | 79 | – | (85) | (10) | – | – |
| Net sales (total) | 175 | 96 | (55) | 8 | 22,899 | 23,182 |
| EBIT1 | (23) | (9) | (1,511) | (528) | (8,285) | 802 |
| EBITDA before special items1 | 13 | 26 | (232) | (274) | 7,274 | 6,695 |
| Net cash provided by operating activities | 303 | 84 | (38) | (236) | 2,062 | (768) |
| Depreciation, amortization, impairment losses / loss reversals |
36 | 35 | 139 | 102 | 2,457 | 2,476 |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
To simplify the consolidation process, leases between fully consolidated companies continue to be recognized as operating leases under IAS 17 within the segment data in the consolidated financial statements of the Bayer Group even after the first-time application of IFRS 16 as of January 1, 2019. This does not have any relevant impact on the respective key data used in the steering of the company and internal reporting to the Board of Management as the chief operating decision maker.
B 9
B 9 (continued)
The following table shows the reconciliation of EBITDA before special items of the above-mentioned segments and the reconciliation to income before income taxes of the Group from continuing operations:
| € million | Q2 2020 | Q2 2021 | H1 2020 | H1 2021 |
|---|---|---|---|---|
| EBITDA before special items of segments | 2,995 | 2,730 | 7,506 | 6,969 |
| EBITDA before special items of enabling functions and consolidation | (112) | (153) | (232) | (274) |
| EBITDA before special items1 | 2,883 | 2,577 | 7,274 | 6,695 |
| Depreciation, amortization and impairment losses / loss reversals before special items of segments |
(1,098) | (906) | (2,282) | (1,905) |
| Depreciation, amortization and impairment losses / loss reversals before special items of corporate functions and consolidation |
(58) | (51) | (127) | (102) |
| Depreciation, amortization and impairment losses / loss reversals before special items |
(1,156) | (957) | (2,409) | (2,007) |
| EBIT before special items of segments | 1,897 | 1,824 | 5,224 | 5,064 |
| EBIT before special items of enabling functions and consolidation | (170) | (204) | (359) | (376) |
| EBIT before special items1 | 1,727 | 1,620 | 4,865 | 4,688 |
| Special items of segments | (11,510) | (3,801) | (11,998) | (3,734) |
| Special items of enabling functions and consolidation | (1,001) | (100) | (1,152) | (152) |
| Special items1 | (12,511) | (3,901) | (13,150) | (3,886) |
| EBIT of segments | (9,613) | (1,977) | (6,774) | 1,330 |
| EBIT of enabling functions and consolidation | (1,171) | (304) | (1,511) | (528) |
| EBIT1 | (10,784) | (2,281) | (8,285) | 802 |
| Financial result | (276) | (99) | (928) | (447) |
| Income before income taxes | (11,060) | (2,380) | (9,213) | 355 |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
In the second quarter of 2021, the establishment of provisions for settlements and defense costs within the Crop Science Division, mainly in connection with the glyphosate litigation, gave rise to other operating expenses of €3,458 million that were reported as special items.
In the previous year, there were special charges of €12,050 million for the glyphosate (Crop Science), dicamba (Crop Science), Essure™ (Pharmaceuticals) and PCB (Reconciliation) litigations.
In the second quarter of 2021, the additional expenses for settlements and the utilization of provisions previously established for this purpose resulted in a €271 million net increase in deferred tax assets (Q2 2020: €1,727 million) on future tax-deductible expenses.
The consolidated financial statements as of June 30, 2021, included 376 companies (December 31, 2020: 385 companies). Six joint ventures (December 31, 2020: six) and 26 associates (December 31, 2020: 21) were accounted for in the consolidated financial statements using the equity method according to IAS 28 (Investments in Associates and Joint Ventures).
On June 2, 2021, Bayer completed the acquisition of 100% of the shares in two biotech companies: Noria Therapeutics Inc., New York City, New York, United States, and PSMA Therapeutics Inc., New York City, New York, United States. Through this acquisition, Bayer will obtain exclusive rights to a differentiated alpha radionuclide therapy based on actinium-225 and a small molecule targeting prostate-specific membrane antigen (PSMA), and in doing so will broaden its oncology portfolio of targeted alpha therapies (TAT). Bayer paid an upfront consideration of €8 million, and will make potential milestone payments of up to around €120 million until launch followed by potential additional sales-based milestone payments that will also amount to up to around €120 million. The acquisition does not fall within the scope of IFRS 3 and is presented as a capital expenditure for intangible assets relating to R&D projects. The two companies have been assigned to the Pharmaceuticals segment.
On December 1, 2020, Bayer acquired 100% of the shares in Asklepios BioPharmaceutical, Inc. (AskBio), Durham, North Carolina, United States. This company has been fully consolidated since that date. AskBio specializes in the research, development and manufacturing of gene therapies across different therapeutic areas. Its development portfolio includes investigational preclinical and clinical stage development candidates for the treatment of neuromuscular, central nervous system, cardiovascular and metabolic diseases. The acquisition gives Bayer full rights to AskBio's gene therapy platform, including a broad intellectual property portfolio and an established contract development and manufacturing organization (CDMO). Bayer paid an upfront consideration of around €1,633 million. Further amounts totaling up to around €1,627 million are payable upon the achievement of pre-defined milestones. The purchase price primarily pertains to goodwill and intangible assets such as technologies for preclinical and clinical-stage development candidates as well as technologies and customer relationships in connection with AskBio's CDMO. The purchase price allocation for AskBio has not yet been concluded.
On November 16, 2020, Bayer increased its interest in Noho Health, Inc. (NoHo), New York, United States, from 11.9% to 70%. The company was fully consolidated as of that date. The remaining shares in circulation are likely to be purchased in early 2022 through the exercise of an agreed put and call option. The purchase price is based on the sales actually achieved in relation to projected sales, and mainly pertains to the Care/Of brand, under which NoHo offers consumers a personalized regimen of nutritional supplements. The acquisition strengthens Bayer's presence and digital capabilities in this fast-growing business within its Consumer Health segment. The purchase price allocation has not yet been concluded.
There are no discontinued operations to report in 2021. In the prior year, the Animal Health business was reported as a discontinued operation in view of its sale to Elanco Animal Health LLC (Elanco), Greenfield, Indiana, United States, on the basis of the purchase agreement of August 20, 2019. The business was transferred to Elanco on August 1, 2020. The final purchase price, including adjustments typical for this type of transaction, was determined in the first quarter of 2021.
The income statements for the discontinued operations in the prior year are given below:
| Animal Health | ||
|---|---|---|
| € million | Q2 2020 Q2 2021 | |
| Net sales | 488 | – |
| Cost of goods sold | (134) | – |
| Gross profit | 354 | – |
| Selling expenses | (162) | – |
| Research and development expenses | (35) | – |
| General administration expenses | (50) | – |
| Other operating income / expenses | 5 | – |
| EBIT1 | 112 | – |
| Financial result | (5) | – |
| Income before income taxes | 107 | – |
| Income taxes | (36) | – |
| Income after income taxes | 71 | – |
| of which attributable to noncontrolling interest | – | – |
| of which attributable to Bayer AG stockholders (net income) | 71 | – |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
| Animal Health | ||
|---|---|---|
| € million | H1 2020 | H1 2021 |
| Net sales | 984 | – |
| Cost of goods sold | (273) | – |
| Gross profit | 711 | – |
| Selling expenses | (286) | – |
| Research and development expenses | (67) | – |
| General administration expenses | (103) | – |
| Other operating income / expenses | 9 | – |
| EBIT1 | 264 | – |
| Financial result | (6) | – |
| Income before income taxes | 258 | – |
| Income taxes | (67) | – |
| Income after income taxes | 191 | – |
| of which attributable to noncontrolling interest | – | – |
| of which attributable to Bayer AG stockholders (net income) | 191 | – |
1 For definition see Annual Report 2020, A 2.3 "Alternative Performance Measures Used by the Bayer Group."
The cash flows from the discontinued operations in the prior year were as follows:
| Animal Health | |||
|---|---|---|---|
| € million | Q2 2020 Q2 2021 | ||
| Net cash provided by (used in) operating activities | 163 | – | |
| Net cash provided by (used in) investing activities | (14) | – | |
| Net cash provided by (used in) financing activities | (149) | – | |
| Change in cash and cash equivalents | – | – |
B 11
B 12
| Cash Flows from Discontinued Operations | |
|---|---|
| Animal Health |
| € million | H1 2020 | H1 2021 |
|---|---|---|
| Net cash provided by (used in) operating activities | 123 | – |
| Net cash provided by (used in) investing activities | (26) | – |
| Net cash provided by (used in) financing activities | (97) | – |
| Change in cash and cash equivalents | – | – |
As no cash was assigned to the discontinued operations, the balance of the cash provided was deducted again in financing activities.
The assets and liabilities held for sale totaled around €32 million as of June 30, 2021, and were attributable entirely to property, plant and equipment. They primarily related to the planned sale of a production facility in Brazil in the Pharmaceuticals segment.
On February 11, 2020, Bayer announced an agreement with Nuvisan ICB GmbH, Neu-Ulm, Germany, to transfer a large part of the Berlin-based small molecule research unit to Nuvisan. The Nuvisan group is an international service provider for clinical studies, laboratory services and contract manufacturing for the pharmaceuticals industry. The agreement supports Bayer's increased focus on the flexibility and productivity of its R&D operating model. The transaction closed on June 30, 2020. The base selling price was €0 million, and the divestment loss amounted to €19 million.
Unscheduled impairment testing was performed in the second quarter of 2021 due to the details of the accelerated transformation program for central administrative functions becoming more concrete and the allocation to provisions for restructuring made in this connection, as well as updated corporate planning.
The impairment testing did not give rise to any material impairment losses or impairment loss reversals in the Pharmaceutical and Consumer Health segments.
Within the Crop Science segment, it resulted in the recognition of net impairment losses of €437 million on intangible assets. These concerned the cash-generating unit Corn Seed & Traits, with an impairment loss of €818 million (comprising €155 million on R&D projects, €526 million on patents and technologies, €117 million on brands and €20 million on marketing and distribution rights). The impairment loss was primarily attributable to changes in carrying amounts due to exchange rate fluctuations and an increase in the weighted average cost of capital at the end of the second quarter. In addition, an impairment loss reversal of €381 million was recognized for the glyphosate cash-generating unit (comprising €135 million on patents and technologies, and €246 million on brands), mainly due to improved business prospects. The impairment losses and impairment loss reversals on the assets of the cash-generating units were allocated to the cost of goods sold, selling expenses, and research and development expenses.
The table below indicates the capital cost factors used in the impairment testing on the cash-generating units in the fourth quarter of 2020 and second quarter of 2021.
| Impairment Testing Parameters | ||
|---|---|---|
| After-tax cost of capital | ||
| % | Q4 2020 | Q2 2021 |
| Corn Seed & Traits | 7.4 | 7.6 |
| Soybean Seed & Traits | 7.0 | 7.3 |
| Glyphosate | 8.0 | 8.2 |
| Dicamba | 5.7 | 6.1 |
| Cotton | 6.0 | 6.9 |
| Canola | 5.7 | 6.4 |
| Vegetable Seeds | 8.9 | 9.3 |
The growth rates and capital cost factors used in the impairment testing of goodwill in the fourth quarter of 2020 and the second quarter of 2021 are shown in the following table:
| Impairment Testing Parameters | |||||
|---|---|---|---|---|---|
| Growth rate | After-tax cost of capital | ||||
| % | Q4 2020 | Q2 2021 | Q4 2020 | Q2 2021 | |
| Crop Science | 2.0 | 2.0 | 7.8 | 8.0 | |
| Pharmaceuticals | 0.0 | 0.0 | 5.3 | 5.1 | |
| Consumer Health | 1.0 | 1.0 | 6.3 | 6.2 |
Testing goodwill for impairment involves calculating the fair value less costs to sell. No impairment losses were recognized on goodwill in the second quarter of 2021. In the prior year, impairment charges of €2,238 million were recognized on goodwill in the third quarter, and no impairment charges were recognized on goodwill in the fourth quarter.
The following tables show the carrying amounts and fair values of the individual financial assets and liabilities by category of financial instrument under IFRS 9 and a reconciliation to the corresponding line items in the statements of financial position. Since the line items "Trade accounts receivable," "Other receivables," "Financial liabilities" and "Other liabilities" contain both financial instruments and nonfinancial assets or liabilities (such as other tax receivables), the reconciliation is shown in the column headed "Nonfinancial assets / liabilities."
38
B 15
| June 30, 2021 | ||||||
|---|---|---|---|---|---|---|
| Measured at fair value [fair value for information4] |
||||||
| Measurement category (IFRS 9)1 | Measured at amortized cost |
Based on quoted prices in active markets (Level 1) |
Based on observable market data (Level 2) |
Based on unobservable inputs (Level 3) |
Nonfinancial assets / liabilities |
|
| € million | Carrying amount |
Carrying amount |
Carrying amount |
Carrying amount |
Carrying amount |
Total |
| Trade accounts receivable | 12,673 | 163 | 239 | 13,075 | ||
| AC | 12,673 | 12,673 | ||||
| FVTPL, mandatory2 | 163 | 163 | ||||
| Nonfinancial assets | 239 | 239 | ||||
| Other financial assets | 420 | 2,773 | 234 | 1,307 | 4,734 | |
| AC | 390 | [390] | 390 | |||
| FVTPL, mandatory2 | 2,534 | 15 | 942 | 3,491 | ||
| FVTOCI (no recycling), designated3 | 229 | 353 | 582 | |||
| Derivatives | 10 | 219 | 12 | 241 | ||
| Lease receivables | 30 | [30] | 30 | |||
| Other receivables | 285 | 74 | 2,379 | 2,738 | ||
| AC | 285 | [285] | 285 | |||
| FVTPL, mandatory2 | 74 | 74 | ||||
| Nonfinancial assets | 2,379 | 2,379 | ||||
| Cash and cash equivalents | 3,389 | 3,389 | ||||
| AC | 3,389 | [3,389] | 3,389 | |||
| Total financial assets | 16,767 | 2,936 | 234 | 1,381 | 21,318 | |
| of which AC | 16,737 | 16,737 | ||||
| of which FVTPL | 2,697 | 15 | 1,016 | 3,728 | ||
| Financial liabilities | 40,139 | 149 | 84 | 40,372 | ||
| AC | 39,019 | [34,977] | [7,056] | 39,019 | ||
| Derivatives | 149 | 149 | ||||
| Lease liabilities | 1,120 | [1,145] | 1,120 | |||
| Nonfinancial liabilities | 84 | 84 | ||||
| Trade accounts payable | 5,118 | 5,118 | ||||
| AC | 5,118 | 5,118 | ||||
| Other liabilities | 850 | 40 | 265 | 1,222 | 886 | 3,263 |
| AC | 850 | [850] | 850 | |||
| FVTPL (nonderivative), mandatory2 | 1,221 | 1,221 | ||||
| Derivatives | 40 | 265 | 1 | 306 | ||
| Nonfinancial liabilities | 886 | 886 | ||||
| Total financial liabilities | 46,107 | 40 | 414 | 1,222 | 47,783 | |
| of which AC | 44,987 | 44,987 | ||||
| of which derivatives | 40 | 414 | 1 | 455 |
1 AC: at amortized cost
FVTOCI: at fair value through other comprehensive income
FVTPL: at fair value through profit or loss
2 Measured at fair value through profit or loss as required by IFRS 9
3 Measured at fair value through other comprehensive income under IFRS 9, paragraph 5.7.5
4 Fair value of the financial instruments at amortized cost under IFRS 7 paragraph 29(a)
39
| Dec. 31, 2020 | ||||||
|---|---|---|---|---|---|---|
| Measured at fair value [fair value for information4] |
||||||
| Measurement category (IFRS 9)1 | Measured at amortized cost |
Based on quoted prices in active markets (Level 1) |
Based on observable market data (Level 2) |
Based on unobservable inputs (Level 3) |
Nonfinancial assets / liabilities |
|
| € million | Carrying amount |
Carrying amount |
Carrying amount |
Carrying amount |
Carrying amount |
Total |
| Trade accounts receivable | 9,120 | 246 | 189 | 9,555 | ||
| AC | 9,120 | 9,120 | ||||
| FVTPL, mandatory2 | 246 | 246 | ||||
| Nonfinancial assets | 189 | 189 | ||||
| Other financial assets | 1,416 | 3,714 | 3,078 | 1,287 | 9,495 | |
| AC | 1,414 | [1,414] | 1,414 | |||
| FVTPL, mandatory2 | 3,642 | 2,813 | 931 | 7,386 | ||
| FVTOCI (no recycling), designated3 | 55 | 344 | 399 | |||
| Derivatives | 17 | 265 | 12 | 294 | ||
| Lease receivables | 2 | [2] | 2 | |||
| Other receivables | 323 | 77 | 2,102 | 2,502 | ||
| AC | 323 | [323] | 323 | |||
| FVTPL, mandatory2 | 77 | 77 | ||||
| Nonfinancial assets | 2,102 | 2,102 | ||||
| Cash and cash equivalents | 4,191 | 4,191 | ||||
| AC | 4,191 | [4,191] | 4,191 | |||
| Total financial assets | 15,050 | 3,960 | 3,078 | 1,364 | 23,452 | |
| of which AC | 15,048 | 15,048 | ||||
| of which FVTPL | 3,888 | 2,813 | 1,008 | 7,709 | ||
| Financial liabilities | 41,560 | 136 | 70 | 41,766 | ||
| AC | 40,423 | [34,189] | [9,824] | 40,423 | ||
| Derivatives | 136 | 136 | ||||
| Lease liabilities | 1,137 | [1,175] | 1,137 | |||
| Nonfinancial liabilities | 70 | 70 | ||||
| Trade accounts payable | 5,683 | 5,683 | ||||
| AC | 5,683 | 5,683 | ||||
| Other liabilities | 858 | 56 | 224 | 1,248 | 987 | 3,373 |
| AC | 858 | [858] | 858 | |||
| FVTPL (nonderivative), mandatory2 | 1,247 | 1,247 | ||||
| Derivatives | 56 | 224 | 1 | 281 | ||
| Nonfinancial liabilities | 987 | 987 | ||||
| Total financial liabilities | 48,101 | 56 | 360 | 1,248 | 49,765 | |
| of which AC | 46,964 | 46,964 | ||||
| of which derivatives | 56 | 360 | 1 | 417 |
1 AC: at amortized cost
FVTOCI: at fair value through other comprehensive income
FVTPL: at fair value through profit or loss
2 Measured at fair value through profit or loss as required by IFRS 9
3 Measured at fair value through other comprehensive income under IFRS 9, paragraph 5.7.5
4 Fair value of the financial instruments at amortized cost under IFRS 7 paragraph 29(a)
40
41
Due to the short maturities of most trade accounts receivable and payable, other receivables and liabilities, and cash and cash equivalents, their carrying amounts at the closing date do not significantly differ from the fair values.
The fair values of financial assets and liabilities measured at amortized cost that are given for information are the present values of the respective future cash flows. The present values are determined by discounting the cash flows at a closing-date interest rate, taking into account the term of the assets or liabilities and also the creditworthiness of the counterparty in certain cases. Where a market price is available, however, this is deemed to be the fair value.
The fair values of financial assets measured at fair value correspond to quoted prices in active markets (Level 1), or are determined using valuation techniques based on observable market data as of the end of the reporting period (Level 2) or are the present values of the respective future cash flows, determined on the basis of unobservable inputs (Level 3).
The fair values of derivatives for which no publicly quoted prices exist in active markets (Level 1) are determined using valuation techniques based on observable market data as of the end of the reporting period (Level 2). In applying valuation techniques, credit or debt value adjustments are determined to account for the credit risk of the contractual party or Bayer.
Currency and commodity forward contracts are measured individually at their forward rates or forward prices on the closing date. These depend on spot rates or prices, including time spreads. The fair values of interest-rate hedging instruments and cross-currency interest-rate swaps were determined by discounting future cash flows over the remaining terms of the instruments at market rates of interest, taking into account any foreign currency translation as of the closing date in certain cases.
Fair values measured using unobservable inputs are categorized within Level 3 of the fair value hierarchy. This applies to certain debt or equity instruments, in some cases to the fair values of embedded derivatives, and to obligations for contingent consideration in business combinations. Credit risk is frequently the principal unobservable input used to determine the fair values of debt instruments classified as "FVTPL – at fair value through profit or loss" by the discounted cash flow method. Here the credit spreads of comparable issuers are applied. A significant increase in credit risk could result in a lower fair value, whereas a significant decrease could result in a higher fair value. However, a relative change of 10% in the credit spread does not materially affect the fair value.
When determining the fair values of contingent consideration from acquisitions recognized as financial liabilities within the "FVTPL (nonderivative) – at fair value through profit or loss" category, the principal unobservable input is the estimation of the probability that, for example, pre-defined milestones for research and development projects will be achieved or that sales targets will be attained, as well as the timing of the payments. Changes in these estimates may lead to significant increases or decreases in fair value.
Embedded derivatives are separated from their respective host contracts, provided these are not financial instruments. Such host contracts are generally sale or purchase agreements relating to the operational business. The embedded derivatives cause the cash flows from the contracts to vary with exchange-rate or price fluctuations, for example. The internal measurement of embedded derivatives is mainly performed using the discounted cash flow method, which is based on unobservable inputs. These include planned sales and purchase volumes, and prices derived from market data. Regular monitoring is carried out based on these fair values as part of quarterly reporting.
The changes in the amount of financial assets and liabilities recognized at fair value based on unobservable inputs (Level 3) for each financial instrument category were as follows:
| € million | Assets – FVTPL1 |
FVTOCI (no recycling)1 |
Derivatives (net) |
Liabilities – FVTPL (nonderivative)1 |
Total |
|---|---|---|---|---|---|
| Carrying amounts (net), January 1, 2021 | 1,008 | 344 | 11 | (1,247) | 116 |
| Gains (losses) recognized in profit or loss | 1 | – | (1) | 41 | 41 |
| of which related to assets / liabilities recognized in the statements of financial position |
1 | – | (1) | 41 | 41 |
| Gains (losses) recognized outside profit or loss | – | 25 | – | – | 25 |
| Additions of assets (liabilities) | 5 | 20 | – | – | 25 |
| Settlements of (assets) liabilities | (1) | (1) | – | 23 | 21 |
| Transfer into Level 1 | – | (42) | – | – | (42) |
| Exchange differences | 3 | 7 | 1 | (38) | (27) |
| Carrying amounts (net), June 30, 2021 | 1,016 | 353 | 11 | (1,221) | 159 |
1 See table B 17 for definitions of measurement categories.
| € million | Assets – FVTPL1 |
FVTOCI (no recycling)1 |
Derivatives (net) |
Liabilities – FVTPL (nonderivative)1 |
Total |
|---|---|---|---|---|---|
| Carrying amounts (net), January 1, 2020 | 987 | 232 | 7 | (193) | 1,033 |
| Gains (losses) recognized in profit or loss | 4 | – | (1) | (6) | (3) |
| of which related to assets / liabilities recognized in the statements of financial position |
4 | – | (1) | (6) | (3) |
| Gains (losses) recognized outside profit or loss | – | 19 | – | – | 19 |
| Additions of assets (liabilities) | 1 | 2 | – | – | 3 |
| Settlements of (assets) liabilities | – | (1) | – | 1 | – |
| Disposals from divestments / changes in scope of consolidation |
– | 7 | – | – | 7 |
| Carrying amounts (net), June 30, 2020 | 992 | 259 | 6 | (198) | 1,059 |
1 See table B 18 for definitions of measurement categories.
The changes recognized in profit or loss were included in other operating income / expenses, as well as in the financial result in interest income, exchange gains or losses, and other financial income and expenses.
Equity instruments are generally held for medium- to long-term strategic purposes and are therefore measured at fair value through other comprehensive income. Otherwise they are measured at fair value through profit or loss, as was the case with our interests in Covestro AG, Elanco Animal Health Inc., and Century Therapeutics LLC. The latter company was accounted for in the Bayer Group consolidated financial statements as an associate using the equity method until June 2021. Its IPO in June 2021 led to the loss of significant influence and resulted in a change in accounting method. Since then, the shares held by Bayer have been measured at fair value through profit or loss.
Changes in the fair value of equity instruments measured at fair value through other comprehensive income resulted in the recognition of a net gain of €212 million (before tax) in other comprehensive income. Changes in the fair value of equity instruments measured at fair value through profit or loss led to the recognition of a net gain of €129 million (before tax) in the financial result.
42
B 19
Bayer AG redeemed at maturity a bond with a nominal volume of €750 million in January 2021. Bayer U.S. Finance II LLC, United States, repaid two bonds with a combined volume of US\$2.5 billion (€2.1 billion) in May and June 2021, respectively. In addition, Bayer Holding Ltd., Japan, redeemed at maturity a bond with a nominal volume of JPY10 billion (€75 million) in May 2021.
The Bayer Group sold its remaining shares in Covestro AG and Elanco Animal Health Inc. over the course of the first half of the year.
As of June 30, 2021, other contingent liabilities declined by approximately €0.4 billion. Contingent liabilities primarily related to tax and labor law as well as other matters in countries such as Germany, the United States, Brazil and Italy.
To find out more about the Bayer Group's legal risks, please see Note [30] to the consolidated financial statements in the Bayer Annual Report 2020, which can be downloaded free of charge at www.bayer.com. Since the Bayer Annual Report 2020, the following significant changes have occurred in respect of the legal risks:
Roundup™ (glyphosate): A large number of lawsuits from plaintiffs claiming to have been exposed to glyphosate-based products manufactured by Bayer's subsidiary Monsanto have been served upon Monsanto in the United States. Glyphosate is the active ingredient contained in a number of Monsanto's herbicides, including Roundup™-branded products. Plaintiffs allege personal injuries resulting from exposure to those products, including non-Hodgkin lymphoma (NHL) and multiple myeloma, and seek compensatory and punitive damages. Additional lawsuits are anticipated.
In 2020, Monsanto reached an agreement in principle with plaintiffs, without admission of liability, to settle most of the current Roundup™ litigation and to put in place a mechanism to resolve potential future claims. Monsanto continues to make progress and per July 2021 has reached settlements and/or is close to settling in a substantial number of cases; including non-eligible cases this amounts to approximately 96,000 cases out of the approximately 125,000 cases reported in the Annual Report 2020.
The mechanism to resolve potential future claims involved a class settlement agreement between Monsanto and plaintiffs' counsel. This agreement required approval by Judge Chhabria of the U.S. District Court for the Northern District of California. In May 2021, Judge Chhabria denied the class agreement. Following the judge's denial, in May 2021 Bayer announced a series of measures to resolve potential future glyphosate litigation, combining both legal and commercial actions. In July, Bayer provided an update on the progress made and announced additional details. Bayer has developed two scenarios based on a potential ruling by the Supreme Court of the United States in the Hardeman case. If the Supreme Court accepts the petition, which Bayer plans to file in August, for review and rules in favor of Bayer, it would effectively end potential future litigation. The second scenario assumes that the Supreme Court either refuses to hear the Hardeman case or issues a ruling in favor of the plaintiff, in which case Bayer would activate its own claims administration program. Bayer has implemented corresponding accounting measures for this scenario, resulting in a discounted allocation to provisions for litigations of €3.5 billion in the second quarter of 2021 on top of the existing provisions.
Bayer is confident that this provides an effective path to manage and address any risks from potential future Roundup™ litigation, while simultaneously giving Bayer more control going forward. Bayer continues to believe there is no reason for safety concerns in connection with these products.
The three cases that have so far gone to trial – Johnson, Hardeman and Pilliod – are not covered by the settlement. In May 2021, the 9th Circuit ruled against Monsanto in the Hardeman appeal. The company will petition the Supreme Court of the United States for review in Hardeman. The Pilliod appeal remains pending before the California Court of Appeal. The Johnson case was concluded with payment of the US\$20.5 million final judgment plus interest in March 2021.
As of July 13, 2021, a total of 22 Canadian lawsuits relating to Roundup™ and 11 seeking class action certification had been served upon Bayer.
Dicamba: As of July 13, 2021, lawsuits from approximately 230 plaintiffs had been served upon Bayer's subsidiary Monsanto and co-defendant BASF in both state and federal courts in the United States alleging that Monsanto's XtendiMax™ herbicide as well as other products containing dicamba caused crop damage from off-target movement. In 2020, Monsanto reached a global agreement with the plaintiffs to settle the dicamba litigation. Following the dicamba settlement, two additional dicamba lawsuits were filed and served upon Bayer: In May 2021, a honey producer (Coy's Honey Farms) filed suit in the Eastern District of Arkansas against Bayer and BASF alleging damages to his honey business caused by dicamba. The case will be transferred to the Dicamba MDL in Missouri. In June 2021, approximately 60 Texas vineyard growers filed a single lawsuit in Jefferson County, Texas state court alleging dicamba damage to their vineyards. The lawsuit names Bayer, Monsanto and BASF as defendants. In July 2021, the lawsuit was removed to the Eastern District of Texas and was listed on a tag-along letter seeking transfer to the Dicamba MDL.
Betaferon™ / Betaseron™: In Bayer's patent litigation against Biogen MA Inc. in a U.S. federal court regarding Betaseron™, Bayer's drug product for the treatment of multiple sclerosis, the U.S. federal court entered final judgment in favor of EMD Serono, Inc. and Pfizer Inc. and, separately, in favor of Bayer and Novartis Pharmaceuticals Corporation ("Novartis") in March 2021. This terminates the patent dispute regarding Betaseron™ and Extavia™, another drug product for the treatment of multiple sclerosis which is manufactured by Bayer, but distributed in the United States by Novartis.
Jivi™ (BAY94-9027): In 2018, Nektar Therapeutics ("Nektar"), Baxalta Incorporated and Baxalta U.S., Inc. (together "Baxalta") filed a complaint in a U.S. federal court against Bayer alleging that BAY94-9027, approved as Jivi™ in the United States for the treatment of hemophilia, infringes five patents by Nektar. In parallel proceedings before the same U.S. federal court over infringement of a Bayer patent by Baxalta's hemophilia treatment Adynovate™, the court ordered Baxalta in 2019 to pay US\$182 million to Bayer. In March 2021, the U.S. Court of Appeals for the Federal Circuit affirmed the order in favor of Bayer. In May 2021, Bayer, Baxalta and Nektar agreed to settle their patent disputes. Bayer and Baxalta will both be able to continue to market their respective hemophilia treatments.
PCBs: Bayer's subsidiary Monsanto has been named in lawsuits brought by various governmental entities in the United States claiming that Monsanto, Pharmacia and Solutia, collectively as a manufacturer of PCBs, should be responsible for a variety of damages due to PCBs in the environment, including bodies of water, regardless of how PCBs came to be located there. PCBs are chemicals that were widely used for various purposes until the manufacture of PCBs was prohibited by the EPA in the United States in 1979. Monsanto also faces numerous lawsuits claiming personal injury and/or property damage due to use of and exposure to PCB products. In July 2021, a jury in King County, Washington, awarded a total amount of US\$185 million (compensatory and punitive damages) to three plaintiffs alleging personal injury from allegedly being exposed to PCB in their workplace, the Sky Valley Education Center. Bayer disagrees with the verdict and plans to pursue post-trial motions and, if necessary, an appeal. The undisputed evidence in this case does not support the conclusions that plaintiffs were exposed to unsafe levels of PCBs or that any exposure could have possibly caused their claimed injuries. There are approximately 200 possible plaintiffs in connection with the relevant building. We believe that we also have meritorious defenses in these matters and intend to defend ourselves vigorously.
Net operating cash flow from continuing operations in the first half of 2021 amounted to minus €768 million (H1 2020: €2,062 million). The decline compared with the prior-year period was due in particular to net cash outflows of €3.1 billion to resolve litigations. Cash inflows from the patent dispute surrounding our product Jivi™ were among the factors that had a positive impact. The high, positive change in other working capital in the second quarter of 2021 pertained in particular to the €3.5 billion discounted allocation to provisions for the glyphosate litigations, which neutralizes the corresponding effect in EBIT.
The net cash inflow for investing activities in the first half of the year amounted to €4,392 million (H1 2020: net cash outflow of €1,019 million). We invested €822 million (H1 2020: €976 million) in property, plant and equipment and intangible assets. Cash outflows for divestments came to €57 million (H1 2020: €65 million) and were attributable to the final purchase price adjustment from the sale of the Animal Health business. Cash outflows for acquisitions amounted to €23 million (H1 2020: €106 million) and mainly comprised a payment for the achievement of a research-based milestone. Net cash inflows from current financial assets totaled €4,891 million (H1 2020: net cash outflows of €274 million) and primarily arose from the sale of investments in money market funds.
There was a net cash outflow of €4,490 million for financing activities (H1 2020: €1,090 million). This included net loan repayments of €2,000 million (H1 2020: net borrowings of €2,298 million). Net interest payments came to €525 million (H1 2020: €637 million). We paid out €1,965 million in dividends (H1 2020: €2,751 million).
Related parties as defined in IAS 24 (Related Party Disclosures) are those legal entities and natural persons that are able to exert influence on Bayer AG and its subsidiaries or over which Bayer AG or its subsidiaries exercise control or joint control or have a significant influence. They include, in particular, nonconsolidated subsidiaries, joint ventures and associates included in the consolidated financial statements at cost of acquisition or using the equity method, post-employment benefit plans and the corporate officers of Bayer AG.
Related-party transactions were not material from the viewpoint of the Bayer Group.
On April 27, 2021, the Annual Stockholders' Meeting approved the proposal by the Board of Management and the Supervisory Board that a dividend of €2.00 per share entitled to the dividend be paid for the 2020 fiscal year.
The actions of the members of the Board of Management and the Supervisory Board serving in 2020 were ratified in accordance with the proposals by the Board of Management and the Supervisory Board.
Two stockholder representatives were elected to the Supervisory Board in accordance with the nominations submitted by the Supervisory Board.
The proposal by the Board of Management and Supervisory Board to amend the compensation of the Supervisory Board, which is set forth in Article 12 of the company's Articles of Incorporation, was approved by the Annual Stockholders' Meeting.
In accordance with the proposal by the Supervisory Board, Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Munich, Germany, was elected auditor of the annual and consolidated financial statements for 2021, and also to review, if applicable, the condensed financial statements and interim management report as of June 30, 2021, and, if applicable, the condensed financial statements and interim management reports as of September 30, 2021, and March 31, 2022, if these are prepared.
Bayer AG announced in August 2021 that it had entered into an agreement to acquire the biopharmaceutical company Vividion Therapeutics, Inc., San Diego, California, United States. Through the acquisition, Bayer will gain access to a cutting-edge chemoproteomics platform that is able to identify previously unknown binding pockets in undruggable targets. As part of the acquisition, Bayer will make an upfront payment of around €1,260 million along with success-based milestone payments of up to around €420 million. Closing of the transaction is contingent on customary closing conditions and is expected to take place in third quarter of 2021.
In July 2021, Bayer U.S. Finance II LLC, United States, and Monsanto Company, United States, repaid two bonds with a combined volume of US\$500 million (€423 million).
Leverkusen, August 3, 2021
Bayer Aktiengesellschaft
The Board of Management
Werner Baumann Liam Condon Sarena Lin
Wolfgang Nickl Stefan Oelrich Heiko Schipper
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group in line with generally accepted accounting principles, and the interim Group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
Leverkusen, August 3, 2021
Bayer Aktiengesellschaft
The Board of Management
Werner Baumann Liam Condon Sarena Lin
Wolfgang Nickl Stefan Oelrich Heiko Schipper
We have reviewed the condensed interim consolidated financial statements – comprising the consolidated income statement and the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of cash flows, the condensed consolidated statement of changes in equity as well as selected explanatory notes to the financial statements – and the interim group management report for the period from 1. January until 30. June 2021 of Bayer Aktiengesellschaft, Leverkusen, that are part of the half-year financial report under § 115 WpHG (Wertpapierhandelsgesetz: German Securities Trading Act). The preparation of the interim consolidated financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports is the responsibility of the entity's Management Board. Our responsibility is to express a conclusion on the interim consolidated financial statements and on the interim group management report based on our review.
We conducted our review of the interim consolidated financial statements and of the interim group management report in compliance with German generally accepted standards for Reviews of Financial Statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) as well as in supplementary compliance with the International Standard on Review Engagements 2410 "Review of Interim Financial Information performed by the Independent Auditor of the Entity". Those standards require that we plan and perform the review to obtain a certain level of assurance to preclude through critical evaluation, that the interim consolidated financial statements are not prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report is not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of personnel of the entity and analytical procedures applied to financial data and thus provides less assurance than an audit. Since, in accordance with our engagement, we have not performed an audit, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim consolidated financial statements of Bayer Aktiengesellschaft, Leverkusen, are not prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the group management report is not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
München / Germany, 4. August 2021
Deloitte GmbH
Wirtschaftsprüfungsgesellschaft
Prof. Dr. Frank Beine Michael Mehren
Wirtschaftsprüfer Wirtschaftsprüfer
| Q3 2021 Quarterly Statement | November 9, 2021 |
|---|---|
| 2021 Annual Report | March 1, 2022 |
| Annual Stockholders' Meeting 2022 | April 29, 2022 |
| Q1 2022 Quarterly Statement | May 10, 2022 |
This Bayer AG Interim Report is a half-year financial report that satisfies the requirements of Section 115, Paragraph 2, No. 1 and No. 2, Paragraph 3 and Paragraph 4 of the German Securities Trading Act (WpHG). Bayer has prepared the condensed consolidated interim financial statements according to the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and endorsed by the European Union (EU). This report should be read in conjunction with the Annual Report for the 2020 fiscal year and the additional information about the company provided therein. The Annual Report 2020 is available on our website at www.bayer.com.
Published by Date of publication Bayer AG, 51368 Leverkusen, Germany Thursday, August 5, 2021
Editor English edition Jörg Schäfer, phone +49 214 30 39136 Employee Support Services Email: [email protected] SCGermany
Peter Dahlhoff, phone +49 214 30 33022 www.bayer.com Email: [email protected]
Investor Relations Bayer on the internet
This half-year financial report 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.
The product names designated with ™ are brands of the Bayer Group or our distribution partners and are registered trademarks in many countries.
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