Delivering world-class Product Supply at Bayer CropScience

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Bayer CropScience Annual Press Conference 2012. Achim Noack, Head of Product Supply

Transcript of Delivering world-class Product Supply at Bayer CropScience

Page 1: Delivering world-class Product Supply at Bayer CropScience

Achim Noack – Head of Product Supply

Delivering world-class Product Supply at Bayer CropScience

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Forward-Looking Statements

This presentation may contain forward-looking statements based on current

assumptions and forecasts made by Bayer Group or subgroup 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.

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We have established world-class

Product Supply

Cost

Leadership

High Flexibility

Optimal Capital

Employment

Safety

Excellence

Supply Reliability

Excellence

Leadership, Performance & Expertise

• Delivering world-class Product Supply at Bayer CropScience • September, 2012 Page 3

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0.460.39 0.44

0.30 0.32 0.33 0.330.25 0.26

0.14

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012/08YTD

RIR

We have worked hard on safety excellence

and are aiming to improve it further

* No. of Recordable Incidents per 200,000 worked hours

• Occupational Health & Safety: Global road & driving safety, safety in agricultural

operations, ergonomic risks

• Process & Plant Safety: Specific training for 6,000 employees

• Transport Safety: Transport safety audits, global training programs

• Delivering world-class Product Supply at Bayer CropScience • September, 2012 Page 4

* 0.50

0.40

0.30

0.20

0.10

0.00

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• Delivering world-class Product Supply at Bayer CropScience • September, 2012 *percentage point Page 5

Continuously improved CoGS/net sales ratio

∆ = 3.5 pp*

2010 2011

∆ = 1.0 pp

YTD

08/2011

• Leveraging our technical expertise

• Fostering continuous improvement culture

• Optimizing our global asset footprint

• Strengthening cooperation with strategic suppliers

We combat inflation by…

YTD

08/2012

We are defending our cost

leadership position

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~ € 2 bn

• Seeds innovation in

RTP/USA

• Modernization of

chemical research

center in

Monheim/Germany

• Building up Biologics

in Davis, USA

• Breeding Stations

• Greenhouses

• Seed processing

facilities

• Delivering world-class Product Supply at Bayer CropScience • September, 2012 Page 6

• Capacity expansion

• Consolidation multi-

purpose unit

• Advanced process

technology

We are investing ~ €2 bn in assets

(2011–2016) to foster future growth

~ €0.2 bn Research &

Development

~ €1.3 bn Product Supply

~ €0.5 bn Seeds

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In particular, we are expanding the capacity

of our top Crop Protection active ingredients

Brands Project Location CAPEX Total

Expansion of Trifloxystrobin capacity Muttenz

Expansion of Prothioconazole capacity Dormagen

Kansas City

Expansion of SC Formulation capacity Villefranche

Capacity expansion of

Glufosinate Ammonium

Knapsack

Frankfurt

Muskegon

More CAPEX investment planned to further expand our capacity …

~ €200 m

• Delivering world-class Product Supply at Bayer CropScience • September, 2012 Page 7

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• Delivering world-class Product Supply at Bayer CropScience • September, 2012 Page 8

We are investing in our Seeds assets

to increase our global footprint