Crop Science R&D Pipeline Update Webinar - 2022-02-16 - Presentation
Crop Science R&D Pipeline Update Webinar - 2022-02-16 - Presentation
Advancing
Tomorrow‘s
Innovations Today
///////////
Rodrigo Santos
President, Crop Science Division
35 /// Bayer Crop Science Annual R&D Pipeline Update /// February 16, 2022 RESTRICTED
Agenda
Welcome
1 Oliver Maier
Head of Investor Relations
2 Prepared Remarks
3 Q&A
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Cautionary Statements Regarding Forward-Looking Information
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.
Commercialization is dependent on multiple factors, including successful conclusion of the regulatory process. The
information presented herein is provided for educational purposes only, and is not and shall not be construed as an offer
to sell, or a recommendation to use, any unregistered pesticide for any purpose whatsoever. It is a violation of federal
law to promote or offer to sell an unregistered pesticide.
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Rodrigo Santos
• President of the Crop Science Division
Perform Transform
Strategic Grow above market and deliver Achieve 100% digitally enabled
Ambition strong returns sales by 2030
Digital Transformation
Water Quality Using Fewer • Small molecules and complementary biological solutions
focused on reducing environmental impact
Natural
Soil Health • Short-stature corn to enable optimal use of inputs, while
Resources minimizing harvest losses
Solutions must serve growers large and small; Empowering 100m smallholders by 2030
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Unmatched R&D Investment Powers Industry-Leading Portfolio
2.0
#1 R&D Platform
in Crop Science
1.2
1.0
0.8 >7,100 R&D
employees3
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Breakthrough Technology Investments Expand R&D Reach
Five Additions in 2021; 21 Distinct Investments in Sustainable Productivity and Improved Nutrition
Leap 03/ Reduce environmental impact of agriculture Leap 07 / Provide next-generation healthy crops
* *
*
Companies shown by primary Leap but may have potential in further Leaps.
*New investment in 2021.
For additional information on these and other Leaps by Bayer investments, please visit: https://leaps.bayer.com/
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Pipeline with Up to €30bn Peak Sales Potential Delivering for Farmers
Eight Projects Advance, Eight New Formulations Launch and Hundreds of Seed Deployments in 2021
Value of Up to €30bn
New crop in Cumulative Peak Sales Potential1
>300 protection
>500 registrations
Cumulative contribution of
~50% Incremental
up to
€30bn
New hybrids and varieties 8 New formulations
launched
projects reaching PSP (in %) ~
Other
deployed across corn, cotton
soybeans and vegetables
2 New actives
advanced
~
Insecticides
Fungicides
Herbicides
~
Soy S&T
5
New trait projects Soybean Seed Placement Corn S&T
advanced across corn, digital tool advances to
soybeans and cotton Phase 2
Cumulative PSP
by SBE
1 Represents non-risk adjusted estimated peak sales for the combined breeding, biotech, crop protection and environmental science pipelines, as well as new business models and new value areas. PSP = Peak sales potential SBE = Strategic Business Entity
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advanced
breeding
technologies
NEW
Superior-performing Bayer branded hybrids capture #1
brand share position in the U.S. in 2021.
1 Includes licensed and branded hybrids; 2 Annual yield advantage calculated each year by comparing 3 leading DEKALB products within each
Note: Size of market, market position and germplasm share measured as of 2021. state having a minimum of 100 comparisons to national competitor products containing similar crop protection traits as of 2021. All comparisons
are head-to-head using +- 2RMs and weighted average calculated using 15% moisture;
1 In 3 NCGA = National Corn Growers Association – National Corn Yield Contest
hybrid corn market only; 2Eu27 +UK, Russia and Ukraine
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breeding
• Deployed >150 new varieties in 2021; offer • Deployed >10 varieties in 2021; offer >25 • Deployed >90 varieties in 2021; sell over 2,100
>850 varieties in North America varieties in the U.S. vegetable hybrids and varieties in 22 crops
• XtendFlex Soybeans, as a part of the • U.S. lint/acre yield advantage with leading • Focus on disease resistance, yield and climate
Roundup Ready Xtend Crop System have varieties; 2021 was 80 lbs./ac advantage resistance for growers; consumer benefits in
a 2.7+ bu/ac advantage vs. Enlist TM Weed for Deltapine vs. top-planted competitor flavor, color and shelf life
Control system in farmer managed varieties
herbicide system trials1
12021 Farmer Managed Soybean System Trials (59 locations in 2021 reporting data located with 10-IA, 11-IL, 8-IN, 2-MI, 9-MN, 6-NE, 4-OH, 2-PA, 1-WI, 1-ND, 2-SD, 3-KS). Significant at P ≤ 0.05 LSD at 1.2 Bu/A as of 11/29/2021. Roundup Ready® Xtend Crop
System data = XtendFlex® soybeans with a farmer-selected weed control program that may include dicamba, glyphosate, glufosinate and various residual herbicides. Enlist™ Weed Control System data = Enlist E3® soybeans with a farmer-selected weed control
program that may include glyphosate, Enlist One® herbicide, Liberty® 280 SL herbicide and various residual herbicides.
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breeding
Data-driven ideas Vast germplasm library, New methods and Prescriptive field Millions of simulated Customer designed
based on customer cutting-edge genomic automation double the evaluation improving field environments solutions that enable new
needs and insights selection and AI rate of product customer enrich product and business models,
models used to design improvement and recommendations and system knowledge prior improve customer
germplasm accelerate trait match of products to to launch experience and are
integration specific environments tunable to global
environmental changes
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next-generation
biotech
traits
35
/// Bayer Crop Science Annual R&D Pipeline Update /// February 16, 2022
biotech
3 herbicide
tolerances 5 herbicide
tolerances 6 herbicide
tolerances
• Glyphosate
• Glyphosate • Glyphosate
HT4 HT5 • Dicamba
• Dicamba • Dicamba
Fourth-Gen Fifth-Gen • Glufosinate
• Glufosinate • Glufosinate
Phase 3 Phase 2 • HPPD
LAUNCHED • HPPD
in 2021 on ~16m Expected 2027 • 2,4-D
• 2,4-D
commercial acres launch • PPO
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biotech
# 1 South America
soybean system1
Control IP3
Velvetbean Caterpillar
Control IP3
• Licensed to seed producers with • Industry-first with three proteins for insect control
>90% share of market in Brazil and resistance management, plus adds dicamba
tolerance for tough-to-control weeds
• On >85m acres in South America in
2020/21
• LAUNCHED on >800k acres in Brazil in
IP4
2021/22 season. Targeting more than 6m Boone, Iowa, June 2021
acres for the 2022/23 season.
IP3 = 3rd generation insect protection trait in soybeans • Performance advantage of 2.89 bu/acre • IP4 ADVANCED to Phase 1; focused on Brazil
IP4 = 4th generation insect protection trait in soybeans
1 Data based on number of traited acres per Bayer internal estimates
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biotech
Fourth-Gen
Phase 3
Multiple Traits in Late-Stage Development for Cotton Farmers
Leading Innovation for Cotton Growers Driving Growth in >€500m1 Cotton S&T Business
Stewarded Commercial Launch in 2022 in the U.S. ADVANCED to Phase 3 ADVANCED to Phase 3
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biotech
Expected
LAUNCHED: Brazil 2021 LAUNCHED: U.S. 2022 Launch : U.S. 2024
~500k acres ~100k acres
3
• SmartStax PRO: 0.28 nodes of root injury Qrome Products: 0.97 nodes of root injury
• Two modes below-ground insect control,
including CRW3, plus two modes above- • For each root node damaged by CRW larvae, a yield loss of ~15% can be expected.2 Root injury score
ground insect control and glyphosate of 0.97 nodes in a 200 bu/acre yield environment could result in 29 bu/acre yield loss.
tolerance
• ~30m acres infested with CRW in the U.S.
1 Head-to-head comparisons across 40 locations with corn rootworm pressure in the U.S. in 2021
2 Tinsley,
N.A., Estes, R.E. and Gray, M.E.. 2012. Validation of a nested error component model to estimate damage caused by corn rootworm larvae. Journal of Applied Entomology. DOI:10.1111/j.1439-0418.2012.01776.x
3SmartStax® PRO corn products will be commercially available for the 2022 growing season. 4VT4PRO with RNAi Technology is not currently available for commercial sale or commercial planting. Commercialization is dependent on multiple factors, including
successful conclusion of the regulatory process. The information presented herein is provided for educational purposes only and is not and shall not be construed as an offer to sell.
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biotech and breeding
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biotech and breeding
Field Plots Around the Globe Demonstrate Key Features and Benefits of Short-Stature Corn
Game-Changing Innovation Digitally Optimized System More Sustainable Future
• Unparalleled production stability with • Extended in-season crop access due to • Potential to optimize use of key nutrients like
improved standability in high winds and shorter height nitrogen, as well as reducing land and water
challenging weather conditions requirements
• Supports tailored solutions with precise in-
• Annual yield losses due to stalk lodging in season crop protection • Opportunity to plant at higher densities, as
the U.S. range from 5% to 25%1 evidenced in Vitala commercial beta in
Mexico
short-stature corn
lodged corn
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biotech and breeding
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small molecules
Today Future
Convergence of Advances in Small Molecules, Biology and Biotechnology Innovation with Digital Technology to Create New Value and Sustainable Productivity
Leadership in value, treated area Industry Leading CP Development New Insights and Precision Application
AND exceptionally low crop • >15 new AIs launched in the past 15 years; 8 with Digital Tools
protection environmental impact AI in development and 2 launching in 2022
•
1.
Crop specific digital application timing to
2018 Crop Protection Environmental Impact optimize disease control and yields
of Crop Protection
Advances in Formulation Technology
Sales Value • Leadership in
(EUR) formulation
technology enables
Total Area
(HA)
lower volumes with
equivalent or better
Environmental efficacy; drone- Treated with
Delaro®
Untreated
Check Strip
Treated with
Delaro®
Impact (CP) specific
formulations for • Showing and sharing value of fungicide
0% 20% 40% 60% 80% 100% safety and precision applications with growers’ data
Bayer Multinationals Others
1 Note: Environmental impact study conducted by University of Denmark; other multinationals consists of combination of four multinationals.
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small molecules
• Offers unrivaled control of Asian • Better resistance management and broader • New global horticulture fungicide with best-in-
Soybean Rust spectrum class MoA; delivers outstanding protection of
grapes, potatoes and vegetables
• Builds on #1 position in soybean • Consistent yield advantage over standard
fungicides2 in LATAM solutions • Higher, longer-lasting efficacy above
established standards
Mandipropamid
Cyazofamid
Metalaxyl
XIVANA®
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small molecules
• Pyroxasulfone
New Herbicide • First new mode of action in post
3 MoA • Diflufenican
• Aclonifen NEW
Molecule emergence weed control in 30
years
• Mateno Complete includes Aclonifen, a new herbicide mode of • Potential to build on #1 position in global herbicides1
action for Australia
• Suitable for use in wheat and barley for hard-to-control grass • Allows use in various market segments, beyond traditional
and broadleaf weeds nonselective use
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small molecules
Successful track record: Launched >15 active ingredients over the last 15 years
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biologicals
TagTeam®3 TagTeam®3
In-licensed / 1 Poncho® Votivo®2 Integral® Pro2
Commercial Optimize®3 JumpStart®3
Products
1 Also sold under Acceleron® and Torque®3 brand names; 2 3rd party product from BASF, 3 In-licensed from Novozymes
Reaching >60m acres in row crops and high value horticulture and vegetables acres
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biologicals
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powered by
data
science
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data science
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data science
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data science
>5%
higher 2-Year sales CAGR 1,2,3
• Data Connectivity • Variable Rate Planting Scripts
• Data Visualization • Fertility Management
• Crop Performance Analysis • Crop Protection
U.S. customers who are active
• Field Health Imagery
FieldView Plus users have a
Corn Seed Advisor Corn Seed Showcase Corn density / Wheat Digital Disease
- North America - - North America - Placement Management U.S. customers who use FieldView had a
- Brazil - - Europe -
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data science
Project Carbonview, collaboration with Bushel, CHS Inc., largest Ag Coop in the U.S.,
The Andersons, and built on Amazon Web agreed to be our carbon program
Crop Rotation by Field Services cloud infrastructure, expected to track provider, providing advice to growers
carbon emissions across ethanol chain moving to sustainable practices.
1 Source: https://www.reuters.com/article/us-carbontrading-turnover/global-carbon-trading-turnover-at-record-214-billion-last-year-research-idUSKBN1ZN1RN; 2 Forward Group Research Carbon Credit Program Perceptions & Evaluation, July 2021
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data science
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Winwith world class innovation
Key Take-Aways
Investing to Lead
• ~€2bn annual R&D spend to fuel ~€30bn
peak sales potential
• Five New Leaps Investments
Advancing Innovation
• Eight projects advance, including
• Short-Stature Corn Hybrids
• Bollgard 4 and HT4 Cotton
Powering the Core
• ~500 new hybrids and varieties launch
• >300 new crop protection registrations
• 2022 Launches: SmartStax Pro corn, Intacta
2 Xtend soybeans & Fox Supra fungicide
Transforming with Digital
• Robust Carbon Initiative
Health for all, • Microsoft Collaboration
hunger for none
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Q&A
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Field Innovation Showcase
August 2022
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February 2022 Crop Science
Annual Pipeline Update
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Appendix 1
Crop Science Division: R&D Pipeline (as of February 2022)
Key Corn Seed & Traits, Soybean Seed & Traits and Other Projects with ~€19-€21bn Peak Sales Potential; ~50% Incremental
Digital Disease Mgmt. – NA 5th Generation Lepidoptera Protection Trait Short Stature Corn – Biotech Trait3 Short Stature Corn – Breeding Approach
CORN SEED & TRAIT
5th Generation Herbicide Tolerance Trait 4th Generation Coleoptera Protection Trait 4th Generation Lepidoptera Protection Trait
€10-11bn PSP
4th Generation Insect Protection Trait 5th Generation Herbicide Tolerance Trait 3rd Generation Insect Protection Trait
Digital Disease Mgmt. (6 Tolerances – Adds PPO)
2nd Generation Soy Cyst Nematode resistance
Seed Placement Digital Tool – NA
~€3bn PSP
- Breeding
4th Generation Herbicide Tolerance Trait (HT4)
(5 Tolerances –Adds 2, 4-D and HPPD)
Annual Germplasm Upgrades – Breeding
Soybean Native Resistance - Breeding
Canola/OSR Digital Disease Mgmt. - NA Wheat Digital Disease Mgmt. - EMEA Canola Dicamba Tolerant Trait Lygus and Thrips Control Trait
(ThryvOn Technology) - Stewarded Commercial
Sugarbeets 2nd Generation Herbicide
€6-7bn PSP, Including Carbon Model
Launch
Tolerance Trait2
VEGETABLES and OTHER 4
Projects listed here and included in the peak sales potential by segment do not include projects funded by our LEAPS investments
advanced to next phase
.
PSP = Peak Sales Potential
2 In collaboration with KWS 3 In collaboration with BASF 4 “Other” category includes seeds and traits, such as cotton, canola, wheat, OSR and sugarbeets, plus carbon and digital Models Annual upgrades with new hybrids or varieties launching annually and
multiple generations in development.
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Crop Science Division: R&D Pipeline (as of February 2022)
Key Crop Protection Projects with ~€9bn Peak Sales Potential; ~50% Incremental
Phase I Phase II Phase III Phase IV Life Cycle Management 1
SEEDGROWTH 2
1 Shown here is a subset of Bayer’s total life cycle management activities; focused on new formulation developments which have the potential to bring significant
innovation to customers compared to currently marketed product., Products shown may not yet be fully registered in all jurisdictions. 2 SeedGrowth is currently reported within other SBEs
PSP = Peak Sales Potential Selection of projects listed here and included in the peak sales potential by segment do not include projects in early research or discovery
advanced to next phase
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February 2022 Crop Science
Annual Pipeline Update
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Appendix 2
Breadth and Depth of Five Core R&D Platforms Power Innovation
CONVERGENCE OF LEADING R&D PLATFORMS TO UNLOCK NEXT LAYER OF VALUE CREATION IN AGRICULTURE
270,000 microbes in #1
Leading germplasm Leading protein optimization Strong discovery platform for database of grower and
libraries paired with technology with extensive molecules with new modes-of-
advanced breeding and protein libraries field trial seed performance data
action and differentiated collection
data science technology in the industry
First to combine RNAi profiles
application
technology with biotech >100,000 strains
1.7P3 calculations in 100% novel Mode of characterized every year with >87.5bn data points of
cloud-based algorithms
>2.7bn datapoints Action in early discovery in silico, in vitro or in planta product performance under real-
generated by Precision assays world farmer management
>3,500 unique
Genomics team to deliver 30-60 molecules practices
biotech traits and accelerate
genetic gain
selected for field trials per year >1,700 trials
field-testing locations in 44 countries in 2021 >180m subscribed
>500 deployments >15 new and next-gen. Expect ~100 acres across 23 countries
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Transformative Technologies
Competitive Advantage Competitive Advantage Competitive Advantage Competitive Advantage Competitive Advantage
Best-in-class genome editing and Ability to rapidly test many New traits are introgressed Unrivaled global regulatory
Industry-leading genomics
gene expression toolkits drive gene combinations to into the most elite germplasm, experience
capabilities and germplasm libraries
precision in gene to phenotype evaluate stacks and stacked with the industry’s
Identification of optimal
Best-in-class screening capabilities optimization leading traits
Knowledge of optimal agronomic systems (trait,
High throughput protein optimization genome locations germplasm, chemistry) for
leveraging machine learning to product deployment & customer
design unique modes of action for Largest global field-testing recommendations
pest control footprint diversifies geographic
data insights
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Industry-Leading Expertise in Chemical Crop Protection R&D
Designing Low Impact Chemicals to Safely & Sustainably Address Needs of Farmers and Society
Molecular Target & Hit Proof of Concept Early Development Advanced Development Pre-Launch
Identification Profiling of best candidates Commercial candidate selection and Commercial proof of concept, Regulatory Submissions & Approvals,
AI-supported molecular target & hit addressing market needs; Field trials; product concepts; process regulatory data generation Production, Application Optimization,
identification toward selection of chemical & formulation optimization; development; pre-regulatory data Pre-Marketing
potent and safe molecules mammalian & environmental generation Competitive Advantage
toxicology assessment Competitive Advantage
Competitive Advantage Largest portfolio of assets and
Competitive Advantage digital capabilities to define digitally
Competitive Advantage Unrivaled global regulatory
Largest global field-testing
enabled tailored solutions (CP, experience advising
Powerful target-based discovery footprint diversifies geographic
AI-supported design of molecules to Breeding, Plant Biotech, Data
platform data insights Evaluation of agronomic systems
create desired properties Science)
for product deployment &
Unique early safety assessment with Industry-leading formulation expertise
World-class biology testing Scientific and agronomic knowledge customer recommendations
in vitro tests and in silico prediction with locations in Europe, NA, APAC
to design best resistance-breaking
tools & models Combined regulatory and chemical products
CoGs leadership ensured by cutting
Focus on novel Mode of Action & expertise allow early decisions to edge science and AI-supported
novel chemical spaces maximize probability of success synthesis and route design
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Scale and Leading Technology Drives New Seed Development
Enhancing the Breeding Process with Scalable Analytics, Automation and Improvements in Testing
Competitive Advantage Competitive Advantage Competitive Advantage Competitive Advantage Competitive Advantage
Industry-leading global Ability to rapidly sample and Industry leading Trait Integration Fully automated seed distribution Most advanced and distributed
germplasm libraries across crops genetically evaluate millions of programs stack traits into elite centers prescriptively sample diverse network of field testing in the industry
and markets seeds germplasm growing environment
Evaluation of agronomic systems for
Decades for field and genomic Advanced Product Design product deployment & customer
Largest global field-testing Traited Testing evaluates products as
data combined with industries facilities that enable multiple recommendations
footprint diversifies geographic they would be experience by the
leading data science platform cycles of planting per year
data insights growers
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Exploring New Product Concepts Drives Future Growth for Biologics
Open Innovation approach broadens product offerings with exceptional product development and support
4-6 Year Product Development Timeline
Vast library of diverse Core competencies in World wide network of field Dedicated resources to Sustaining today’s leading
microbes for new fermentation and formulation testing capabilities for early understand compatibility, lineup and pioneering next
generation of microbials optimization of microbial screening and development rainfastness and stability generation of biologicals
and biochemicals products for agriculture of spray programs of biologicals in jug and
on seed
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