bayer cropsciencededicated to fruits & vegetables
DESCRIPTION
Presentation from Dr. Rüdiger Scheitza – Board Member: Strategy & Business Management at the Vegetable Future Forum.TRANSCRIPT
Dr. Rüdiger Scheitza – Board Member: Strategy & Business Management
Monheim, 13 December 2012
Bayer CropScienceDedicated to Fruits & Vegetables
• Vegetable Future Forum • December 2012
We are addressing global trendsacross Bayer CropScience
Customers expect safer and “sustainable” food
Global retailers have more stringent residuereduction targets
Tougher regulations and registration of synthetic products; higher demand for biologics
Biologics often effective in very small quantities
Green Products market forecast to tripleto almost 4 bn USD by 2020
Safer and “sustainably-sourced” food
Quality food for healthy nutrition and well-being
Year-round demand increases global trade of fresh produce
Tougher regulations and registration of synthetic products
Global retailers expect sustainable agricultural production
Rising importance of partnerships along food value chain
Innovation needed to drive “sustainable crop solutions”
Page 2Page 2
• Vegetable Future Forum • December 2012
Cereals
Oilseeds
Soy
Corn
Cotton
Rice
Sugar Crops
* by major crop groups excluding industrial business and non-agricultural solutions
Bayer CropScience sales 2011*
Other
€ 1.7bn 2011 sales in F&V
€ 3bn 2020 sales target
Fruits & Vegetables account for the largest share of our portfolio
Page 3
Fruits & Vegetables
• Vegetable Future Forum • December 2012
Strategic importance of Fruits & Vegetablesfor Bayer CropScience
Page 4
2011 market: F&V Crop Protection and Seeds app. 20% of global market*
2011 Bayer CropScience: A leading global player in specialty crops
• Bayer CropScience is a global leader in F&V Crop Protection
• We are no. 4 in the global vegetable seeds market with strong aspirations for future growth
• Above-average growth rates expected during coming years due to increasing demand
• We boast an impressive portfolio of products & services, and a promising pipeline – including Biologics
• Our pipeline features new actives which answer F&V crop protection market and food chain needs
• Our professional teams in major F&V markets are dedicated to meeting and beating customer needs
App 14% Market Share
F&V Market 2011 €13.6bn*
*Source: Philips McDougall
• Vegetable Future Forum • December 2012
We are executing our four-pillar company strategy for sustainable growth
1 2 3 4
• Enhancing our Crop Protection portfolio by focusing on core brands and new active ingredients
• Driving commercial excellence in marketing and sales
Innovating theconvergence between chemistry and biology
• Strengthening our position in established crops and developing business in soy and wheat
Rejuvenate the core Crop Protection business
Reinvent customer- centricity along value chain
Rebalance and refocus innovation
Extend Seeds footprint infocused crops
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• Vegetable Future Forum • December 2012
Rejuvenating our Crop Protection business
Page 6Page 6
1st strategic pillar
Focusing on superior active ingredients and core brands…
Fungicides
Herbicides
SeedGrowth
Insecticides
Biologics
Vegetable seeds
…right across
our portfolio
Reinventing customer-centricity across the entire value chain
Striving for high quality, improved yields and reduced post-harvest losses of fresh produce
Meeting food quality and safety standards from seed-to-shelf
Fulfilling demands for safety and training of farmers through e.g. Food Chain Partnerships
Bayer CropScience
Our offers
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od
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tail
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ConsumersGrowersDis
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Creating win-wins by translating consumer needs into grower benefits
Page 7 • Vegetable Future Forum • December 2012Page 7
2nd strategic pillar
AgraQuest is leading in innovative biological pest management solutions based on natural microorganisms with an excellent technology platform and a promising pipeline
Acquired in Q3´2012 for $ 425m plus milestone payments, AgraQuest
strengthens our strategically important Fruits & Vegetables business and
provides opportunities in other crops and markets
With AgraQuest, we aim to become the world leader in Sustainable Crop Solutions, integrating and leveraging our skills and innovation capacities across seeds, traits, chemical crop protection and biological control and services
Top AgraQuest brands:
Our AgraQuest acquisition is a perfect fit forour strategy to excel in integrated solutions
Page 8 • Vegetable Future Forum • December 2012Page 8
3rd strategic pillar
• Vegetable Future Forum • December 2012
MolecularBiology
SyntheticChemistry Biologics
Disease controlWeed controlPest controlPlant health
Depending on specific market conditions, individual solutions for customer needs can be made available through different technology platforms
Molecular Biology, Small Molecules and Biologics can be efficient solution-providers for unmet customer needs – each requiring a different expertise
Grower needs
Page 9
We have all competencies to lead the way in Sustainable Crop Solutions
Page 9
3rd strategic pillar
• Vegetable Future Forum • December 2012Page 10
With our Biologics pillar, we are enrichingour portfolio
Page 10
Small Molecules
Biologics
Seeds
• Weed, pest & disease control
• Resistance management
• Conventional seeds
• GMO seeds
• Traits
• Herbicides
• Fungicides
• Insecticides
• SeedGrowth
• Microorganisms
• Microbial extracts
• Canola, cotton, rice, soy, wheat, vegetables
Sustainable Crop Solutions
Innovation allows us to offer differentiated solutions
• Higher yield
• Supreme quality
• Convenience
• Risk management
Grower benefits:
• Vegetable Future Forum • December 2012
Sustainable Crop Solutions are a core focus of our new R&D strategy
World-class
R&D portfolio
Delivering Sustainable Crop Solutions to beat customer expectations
Investing equally in Seeds/ Biologics and Chemistry to create an integrated & effective global R&D organization
Expanding our network of collaborations to leverage the full potential of open innovation
Exploiting expertise Small Molecules, Seeds and Biologics to build a unique position in plant health
Sustainability
Collaboration
Plant health
Rebalancing innovation
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3rd strategic pillar
• Vegetable Future Forum • December 2012
In line with our strategy, we will continue to expand our Seeds footprint in focus crops
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4th strategic pillar
We are aiming to double our share of business in Seeds by 2016
Vegetable Seeds showing consistent growth of 9% CAGR in past five years
High aspirations for further growth expansion
Seeds sales
Share of overall business in Seeds
10%11%
~13%
~20%
Sales in € million
2010 2011 2012E
2016E
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.
• Vegetable Future Forum • December 2012Page 14
ThankYou!