Bayer CropScience Limited. — Investor Presentation 2020

Nov 11, 2020

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November 11, 2020

To, General Manager, DCS - Corporate Relationship Department BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

SECURITY ID : BAYERCROP SECURITY CODE : 506285

Dear Sir,

Sub: Bayer CropScience Limited - Presentation at Investor Meet being held on November 11, 2020

In furtherance of our letter dated November 10, 2020, please find enclosed herewith the presentation that will be made at the Investor Meet of Bayer CropScience Limited being held on Wednesday, November 11, 2020.

Request you to kindly take the said presentation on record.

Bayer CropScience Ltd. CIN: L24210MH1958PLC011173

Registered and Corporate Office: Bayer House Central Avenue Hiranandani Estate Thane (West) – 400 607 Maharashtra, India

Tel : +91 22 2531 1234 Fax : +91 22 2545 5063 www.bayer.in www.cropscience.bayer.com

Thanking you,

Yours faithfully, for Bayer CropScience Limited

Digitally signed by NIKUNJKUMAR JAYSUKHLAL SAVALIYA NIKUNJKUMAR DN: c=IN, st=Gujarat, 2.5.4.20=f4b6303c6a9fe05eb04e62759179373cbcf4b72 8c73ed8032294e09b9e3e0c98, postalCode=390024, street=102 TITHI FLATS, BHADRAN NAGAR, NEW SAMA JAYSUKHLAL ROAD, CHHANI RD, VADODARA, serialNumber=d3cad62ac6fcdd76e7d78a49dee852623 51ff6c69d1c3b84d7669f10a495714a, o=Personal, SAVALIYA cn=NIKUNJKUMAR JAYSUKHLAL SAVALIYA, pseudonym=edc1463c7f2e505c0cb80b5170d37433 Date: 2020.11.11 12:51:04 +05'30'

Nikunjkumar Savaliya

Company Secretary and Compliance Officer

Encl.: As above

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Bayer CropScience Limited Investor Meet Presentation

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Caution regarding forward-looking statements and Company Disclaimer

This presentation 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 http://www.bayer.com/.

The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

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/// BCSL Investor Meet /// November 11, 2020

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Key Data: First Nine Months of 2020 in € Million

Key Financials

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Highlights

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SALES 31,405 (-0.1%*)

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Crop Science:

Solid operational performance in HY1, mainly offset by reduced demands due to COVID-19 and currency effects in Q3

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Pharmaceuticals:

EBITDA before Special items 9,069 (+0.8%)

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New Tender procedure in China and reduced elective treatment due to COVID-19 impacted performance; Q3 improved with still slightly negative sales growth but margin expansion

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Consumer Health:

Good demand in all regions; continues strong growth momentum and margin expansion

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*Adjusted for currency and portfolio effects

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/// BCSL Investor Meet /// November 11, 2020

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2019-20 2020-21

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Financial Performance

₹ millions

Revenue from Operations

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+14%
26,094
22,967 +3%
13,463 13,816
H1 H1 Q2 Q2
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Growth driven by early sowing, based on good monsoon and continued leveraging of combined distribution strength

Higher acreages and positive commodity price Good liquidation growth across HY1

Profit Before Exceptional Items and Tax

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+23% 6,098
4,978 +1%
2,943 2,960
21.7% 23.4% 21.9% 21.4%
H1 H1 Q2 Q2
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Revenue growth, synergies support increase in Profit

Profitability ratio slightly above PY with savings compensating for higher input costs

Strong focus on cash and collection in current Covid-19 environment

CY - Current Year, PY - Previous Year

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Balance Sheet

Balance Sheet
		₹millions
As At	30-Sep-20	30-Sep-19
Assets
Fixed Assets	5,060	5,266
Inventories	9,288	8,839
Trade Receivable	12,216	14,523
Bank Balances	9,311	3,242
Other Assets	6,635	5,816
	42,510	37,686
PY Equity and Liabilities
Shareholders' Fund	25,319	24,167
Trade Payables	6,642	3,468
Provisions	1,619	1,688
Other Liabilities	8,930	8,363
	42,510	37,686

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Focus on collection with positive impact on Receivables with DSO of 74 days (PY 98)

Strong cash position despite interim dividend CY payout

Payables impacted by phasing of purchases

CY - Current Year, PY - Previous Year

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/// BCSL Investor Meet /// November 11, 2020

Cash Flow

ash Flow
		₹millions
For the half year ended Operating profit before working capital changes Net change in Working Capital Taxes paid Net cash from/ (used in) operating activities Net cash from/ (used in) investing activities Net cash used in financing activities Decrease in Cash and Cash Equivalent	30-Sep-20	30-Sep-19
	6,436	5,244
	(1,916)	(5,937)
	(516) (696)
	4,004 (1,389)
	(41) 149
	(5,369) (1,341)
	(1,406) (2,581)

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Higher cashflow from Business Operations as well as strong focus on collections

Interim Dividend payment reflected as part of financing activities in CY

CY - Current Year, PY - Previous Year

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/// BCSL Investor Meet /// November 11, 2020

BCSL Synergies on track

Commercial Integration

• Successfully completed; First synergies realized from combined distribution strength and market coverage

Organizational optimization

• Measures on track to deliver gross savings, as targeted. Benefitted from timing of legal entity merger

Current status

• Topline synergies well on track

• Gross savings generation in line with the target. Significant contribution from Personnel measures followed by optimization of field promotion activities and other cost efficiency measures for a fit to purpose organization

• Outlook

• Accelerate synergies by leveraging strengths of combined portfolio offering, digitalization

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/// BCSL Investor Meet /// November 11, 2020

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Strong focus on business continuity and engaging employees

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Business Continuity

Commercial activities return to normalcy, fulfilling the market demand

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Customer and channel partner meetings being conducted, both virtually as well as in-person based on strong risk-based approach

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Employee Engagement

Favorable survey results from employees on the company’s efforts towards COVID-19 initiatives Created Safety Net for field employees in all states Launched telemedicine services, enhanced insurance coverage for all employees as well as protection covers for elderly parents, organized plethora of wellness programs Offered Employee Assistance Program (EAP), home office set-up assistance as well as resilience training sessions

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training sessions
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Sites

All R&D and manufacturing sites continued near normal operations

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Shared best practices with entire value chain - tolling units, suppliers and warehouses to ensure overall business continuity

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Strict COVID-19 protocols followed across all organizational units and activities

Good Monsoon & Proactive Tactical Measures Driving Growth

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Weather Normal to excess rains across the country barring some areas of deficit. Reservoirs across the country hold adequate water for Rabi crop.

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Sales

Growth in CP on account of early placement, out manoeuvring competition with better supplies & collections. Growth in Seeds powered by Rice, Corn & Millets; increase in these mitigated lower Cotton sales

Acreages

Early onset of sowing across crops with higher sowing recorded across major kharif crops. Continuous and excess rains led to damage & re-sowing and loss of sprays in some areas/crops.

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Liquidation

Agility shown by Grower Engagement & Marketing teams in shifting all farmer connect to online/digital platforms ensured continued farmer outreach.

26% growth in Q2 Bayer Liquidation led by superior Bayer CP demand, good monsoon & early sowing.

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Commodity Price Commodity price of key kharif crops held good; early announcement of MSPs may have helped as well.

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Rabi Outlook

Good water availability led by good monsoon augurs well for key Rabi crops. Only watchout is delayed monsoon withdrawal has led to continuous rains in some parts, this will impact some acres/sprays or lead to delayed rabi sowings.

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Team Bayer for an Inclusive & Digital Future

Smallholder Initiatives & Business Strategy fuelling future growth

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Digital Solutions Value-chain Partnerships

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Portfolio Differentiation

Business Forecast

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Low-cost products portfolio for different Digitalizing the core segments to target incremental opportunity

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Expand portfolio into different segments for rice & corn Globally connected pipelines benefit growers

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Must-Win Battles

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Base-line Business

Business Transformation

Smallholder Digital incubator Digital Innovation Hub + External partnerships

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/// BCSL Investor Meet /// November 11, 2020

Inclusive Growth part of Bayer Crop Science Strategy

Initiatives driving deeper market presence and improving rural community

Better Life Farming (BLF)

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Identifying Agri Entrepreneurs (AE) and onboarding farmers 160 BLF Centers opened this year, 210 Centers functional across UP, Jharkhand, Bihar, WB, MP Additional 195 BLF centers planned for this year, taking coverage to Maharashtra & Odisha Gender smart agriculture - Supporting women smallholder through women AEs and agri-consultants Digital tools like liteERP supporting scale up

BLF Value Chain Partnerships IFC, Yara Fertilisers, DeHaat, AgriBazaar & Big Basket, Tata Trusts, Netafim, Axis Bank

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/// BCSL Investor Meet /// November 11, 2020

Covid-19 relief support to >200 Hospitals and communities across 28 sites

Support to Hospitals/ Government

15,000 PPE Kits 560,000 3ply masks 176 Overall body cover 3,700 N95 masks Sanitizers 50Litres Digital tool for helping Baramati Municipality frontline workers for tracking COVID-19 cases

Support to communities near Bayer sites

300,000 Reusable Masks & 5000 Gloves

70 Sanitizer dispenser & 4100Ltrs of sanitizer

5500 Ration Kits 45,000 cooked meal to frontline workers

Better Farms, Better Lives

Small-holder Outreach during Covid-19

98,000 corn seeds in 6 states & 100,000 crop protection products in 20 states distributed in Kharif

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Starter kit distributed to marginal farmers containing seeds & crop protection inputs as well as face masks and personal protective equipment (PPE)

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Special focus given to women smallholder farmers and migrant laborers who have returned to their villages and plan to take up farming in their small family farms

Support to locust control drive Independently partnered with multiple drone technology providers to support drone-based spraying for locust control in Rajasthan.

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Provided 5,500 liters of Deltamethrin ULV to the Government of India for spraying in affected states. RESTRICTED

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/// BCSL Investor Meet /// November 11, 2020

Digital Connect: 100,000 growers daily !!

Agile response for both Internal & External Out-reach

Learning programs Crops covered Training Hours Stakeholders covered 500+ >25 750+ >40K

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/// BCSL Investor Meet /// November 11, 2020

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Key Takeaways
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HY 1 performance driven by strong liquidation supported by a good monsoon and early sowing activities

Significant cash generation from strong focus on collections

Continued focus to expand partnerships that strive to improve smallholder incomes and competitiveness

Underlying market conditions remain intact besides COVID-19 impact

Integration continues to be well on track

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/// BCSL Investor Meet /// November 11, 2020

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