Q2 2026 Bayer AG Earnings Call - Media Conference

August 4, 2026

Speaker #1: Hi everyone, the past 90 days have been very important for Bayer, and operationally we're on track for the year, and we've made decisive progress on our long-term strategic priorities.

William Anderson: Hi, everyone. The past 90 days have been very important for Bayer. Operationally, we're on track for the year, and we've made decisive progress on our long-term strategic priorities. We're going to cover both of those things today. Let's start with our performance in H1 2026. Across the group, our businesses are delivering what we committed. Sales are at EUR 24 billion, growing 3% on a currency and portfolio adjusted basis, which we'll refer to throughout the call today. Core EPS is at EUR 3.66, which is also up 3% from last year at this time. Our free cash flow in H1 is at EUR -2.7 billion. This compares with EUR -1.4 billion last year at this point, and it's due to the litigation-related payouts that we've previously communicated. Onto our businesses.

Bill Anderson: Hi, everyone. The past 90 days have been very important for Bayer. Operationally, we're on track for the year, and we've made decisive progress on our long-term strategic priorities. We're going to cover both of those things today. Let's start with our performance in H1 2026. Across the group, our businesses are delivering what we committed. Sales are at EUR 24 billion, growing 3% on a currency and portfolio adjusted basis, which we'll refer to throughout the call today. Core EPS is at EUR 3.66, which is also up 3% from last year at this time.

Speaker #1: So we're going to cover both of those things today, so let's start with our performance in the first half of '26. Across the group, our businesses are delivering what we committed: sales are at 24 billion euros, growing 3% on a currency and portfolio-adjusted basis, which we'll refer to throughout the call today.

Speaker #1: So core EPS is at 3 euros and 66 cents, which is also up 3% from last year at this time. Our free cash flow in the first half is at negative 2.7 billion euros, so this compares with minus 1.4 billion euros last year at this point, and it's due to the litigation-related payouts that we've previously communicated.

Bill Anderson: Our free cash flow in H1 is at EUR -2.7 billion. This compares with EUR -1.4 billion last year at this point, and it's due to the litigation-related payouts that we've previously communicated. Onto our businesses. Crop Science delivered sales growth of 5.5%. This was driven by strong momentum in seeds and traits, including the additional licensing revenue we posted in Q1. EBITDA margin expanded to 31%, a considerable improvement over last year, reflecting higher margin sales, the licensing revenue that I just mentioned, and disciplined execution.

Speaker #1: So on to our businesses. Crop science delivered sales growth of 5.5%, and this was driven by strong momentum in seeds and traits, including the additional licensing revenue we posted in the first quarter.

William Anderson: Crop Science delivered sales growth of 5.5%. This was driven by strong momentum in seeds and traits, including the additional licensing revenue we posted in Q1. EBITDA margin expanded to 31%, a considerable improvement over last year, reflecting higher margin sales, the licensing revenue that I just mentioned, and disciplined execution. In Pharmaceuticals, we demonstrated continued resilience. Sales remained flat with NUBEQA and Kerendia combining to grow 66%, overcoming significant and expected declines in Xarelto. Eylea is down 27%, driven by pressures from biosimilars, with the 8-milligram business now representing half of our Eylea sales. Beyonttra continues to progress well, and our base business is growing, in part due to strong volume growth in radiology. Our EBITDA margin is at 26%. This puts us in line with expectations as we continue to invest in future growth in H2.

Speaker #1: EBITDA margin expanded to 31%, a considerable improvement over last year, reflecting higher margin sales, the licensing revenue that I just mentioned, and disciplined execution.

Speaker #1: In pharma, we demonstrated continued resilience. Sales remained flat, with new Becca and Corendia combining to grow 66%, overcoming significant and expected declines in Xarelto.

Bill Anderson: In Pharma, we demonstrated continued resilience. Sales remained flat with NUBEQA and Kerendia combining to grow 66%, overcoming significant and expected declines in Xarelto. Eylea is down 27%, driven by pressures from biosimilars, with the 8-milligram business now representing half of our Eylea sales. Beyonttra continues to progress well, and our base business is growing, in part due to strong volume growth in radiology. Our EBITDA margin is at 26%. This puts us in line with expectations as we continue to invest in future growth in H2.

Speaker #1: Ilya's down 27%, driven by pressures from biosimilars, with the 8-milligram business now representing half of our Ilya sales. Biontra continues to progress well, and our base business is growing in part due to strong volume growth in radiology.

Speaker #1: Our EBITDA margin is at 26%. This puts us in line with expectations, as we continue to invest in future growth in the second half of the year.

Speaker #1: Finally, consumer health posted growth of 3.5%, with contributions from all but one category, and particularly strong growth in nutritionals and dermatology. EBITDA margin is trailing prior year, but it's on track to meet our outlook.

William Anderson: Finally, Consumer Health posted growth of 3.5% with contributions from all but one category, particularly strong growth in nutritionals and dermatology. EBITDA margin is trailing prior year, but it's on track to meet our outlook. Overall, we're pleased with our trajectory. Despite an uncertain environment, we're pacing well to meet our targets. We'll continue executing our plan, and Team Bayer has what it takes to deliver. Now I'll touch on our strategic priorities, including some recent highlights. In Pharmaceuticals, we've received priority review for asundexian in both the US and China, and we're preparing for a planned launch in the end of 2026 or beginning of 2027. We closed the acquisition of Profuse Therapeutics, which we announced last quarter. This is a novel development medicine in glaucoma and diabetic retinopathy.

Bill Anderson: Finally, Consumer Health posted growth of 3.5% with contributions from all but one category, particularly strong growth in nutritionals and dermatology. EBITDA margin is trailing prior year, but it's on track to meet our outlook. Overall, we're pleased with our trajectory. Despite an uncertain environment, we're pacing well to meet our targets. We'll continue executing our plan, and Team Bayer has what it takes to deliver. Now I'll touch on our strategic priorities, including some recent highlights.

Speaker #1: Overall, we're pleased with our trajectory. Despite an uncertain environment, we're pacing well to meet our targets. We'll continue executing our plan, and Team Bayer has what it takes to deliver.

Speaker #1: Now I'll touch on our strategic priorities, including some recent highlights. In pharmaceuticals, we've received priority review for asendexion in both the U.S. and China, and we're preparing for a planned launch in the end of 2026 or beginning of 2027.

Bill Anderson: In Pharmaceuticals, we've received priority review for asundexian in both the US and China, and we're preparing for a planned launch in the end of 2026 or beginning of 2027. We closed the acquisition of Profuse Therapeutics, which we announced last quarter. This is a novel development medicine in glaucoma and diabetic retinopathy. Crop Science continues to execute its 5-year framework, and our efforts here are beginning to deliver tangible results, as seen in the expansion of our margins. We're also optimizing our business setup.

Speaker #1: Further, we closed the acquisition of Prefuse Therapeutics, which we announced last quarter. This is a novel development medicine in glaucoma and diabetic retinopathy. Crop science continues to execute its 5-year framework, and our efforts here are beginning to deliver tangible results, as seen in the expansion of our margins.

William Anderson: Crop Science continues to execute its 5-year framework, and our efforts here are beginning to deliver tangible results, as seen in the expansion of our margins. We're also optimizing our business setup. Last month, we consolidated our US glyphosate business into Ruveon, a distinct entity that will be nimbler and better positioned in a commodity-driven market. We continue to build our innovative portfolio. For instance, we announced a license agreement for broad commercialization of hybrid wheat. Wheat is one of the most important stable crops in the world. Across the company, we continue to push for productivity gains with our operating model. Teams working on launches in Pharmaceuticals, driving profitability gains in Crop Science, and those making investment decisions in Consumer Health have much more ownership over their work. We think our lean entrepreneurial operating model positions us well to capitalize on the opportunities of artificial intelligence.

Speaker #1: We're also optimizing our business setup. Last month we consolidated our U.S. glyphosate business into Ruvion, a distinct entity that will be nimbler, and better positioned in a commodity-driven market.

Bill Anderson: Last month, we consolidated our US glyphosate business into Ruveon, a distinct entity that will be nimbler and better positioned in a commodity-driven market. We continue to build our innovative portfolio. For instance, we announced a license agreement for broad commercialization of hybrid wheat. Wheat is one of the most important stable crops in the world. Across the company, we continue to push for productivity gains with our operating model.

Speaker #1: Further, we continue to build our innovative portfolio. For instance, we announced a license agreement for broad commercialization of hybrid wheat, wheat is one of the most important stable crops in the world.

Speaker #1: So across the company, we continue to push for productivity gains with our operating model. Teams working on launches in pharmaceuticals, driving profitability gains in crop science, and those making investment decisions in consumer health have much more ownership over their work.

Bill Anderson: Teams working on launches in Pharmaceuticals, driving profitability gains in Crop Science, and those making investment decisions in Consumer Health have much more ownership over their work. We think our lean entrepreneurial operating model positions us well to capitalize on the opportunities of artificial intelligence. We're investing in AI in both enterprise systems and tools for our people, so each person at Bayer can extend their productivity, making the greatest impact at the fastest pace and the lowest cost. Finally, litigation.

Speaker #1: We think our lean entrepreneurial operating model positions us well to capitalize on the opportunities of artificial intelligence. And we're investing in AI, in both enterprise systems and tools for our people, so each person at Bayer can extend their productivity, making the greatest impact at the fastest pace and the lowest cost.

William Anderson: We're investing in AI in both enterprise systems and tools for our people, so each person at Bayer can extend their productivity, making the greatest impact at the fastest pace and the lowest cost. Finally, litigation. The last 90 days have been decisive in the company's years-long efforts to contain the litigation uncertainty. On 25 June, in Monsanto versus Durnell, the U.S. Supreme Court announced a landmark ruling for the cause of regulatory clarity for American agriculture and for the company. The decision was in no way ideological, with the majority of justices nominated by both Republicans and Democrats siding with the company. Further, the opinion was unequivocal. The Environmental Protection Agency is the authority when it comes to regulating crop protection products. Claims grounded in states' failure to warn theories are preempted and should be dismissed. Lower courts have already started acting on the Supreme Court's ruling.

Speaker #1: Finally, litigation. The last 90 days have been decisive in the company's years-long efforts to contain the litigation uncertainty. On June 25, in Monsanto versus Durnell, the U.S.

Bill Anderson: The last 90 days have been decisive in the company's years-long efforts to contain the litigation uncertainty. On 25 June, in Monsanto versus Durnell, the U.S. Supreme Court announced a landmark ruling for the cause of regulatory clarity for American agriculture and for the company. The decision was in no way ideological, with the majority of justices nominated by both Republicans and Democrats siding with the company. Further, the opinion was unequivocal. The Environmental Protection Agency is the authority when it comes to regulating crop protection products.

Speaker #1: Supreme Court announced a landmark ruling for the cause of regulatory clarity for American agriculture and for the company. The decision was in no way ideological, with a majority of justices nominated by both Republicans and Democrats siding with the company.

Speaker #1: Further, the opinion was unequivocal: the environmental protection agency is the authority when it comes to regulating crop protection products. Claims grounded in states' failure to warn theories are preempted and should be dismissed.

Bill Anderson: Claims grounded in states' failure to warn theories are preempted and should be dismissed. Lower courts have already started acting on the Supreme Court's ruling. Well, what does the decision from the Supreme Court mean for the company's multi-pronged strategy? The proposed class settlement between Monsanto and leading plaintiffs firms is moving ahead, and we remain convinced it's the best path to resolution, including for plaintiffs whose primary legal theory was deemed without merit by the nation's highest court.

Speaker #1: Lower courts have already started acting on the Supreme Court's ruling. What does the decision from the Supreme Court, what does this mean for the company's multi-pronged strategy?

William Anderson: Well, what does the decision from the Supreme Court mean for the company's multi-pronged strategy? The proposed class settlement between Monsanto and leading plaintiffs firms is moving ahead, and we remain convinced it's the best path to resolution, including for plaintiffs whose primary legal theory was deemed without merit by the nation's highest court. Well, we're in a stronger position following the court's ruling. The final approval hearing in the state court in Missouri is now scheduled for 19 August, with a final decision expected later this year. During the interim, the company will participate in the class process, including briefing the court regarding objections and assessing the quality and quantity of opt-outs. On PCBs, as previously communicated, we aim to enforce the indemnity agreements Monsanto had in place, and there's a case now moving forward in federal court.

Speaker #1: Well, the proposed class settlement between Monsanto and leading plaintiffs' firms is moving ahead, and we remain convinced it's the best path to resolution, including for plaintiffs whose primary legal theory was deemed without merit by the nation's highest court.

Speaker #1: Well, we're in a stronger position following the court's ruling. The final approval hearing in the state court in Missouri is now scheduled for August 19, with a final decision expected later this year.

Bill Anderson: Well, we're in a stronger position following the court's ruling. The final approval hearing in the state court in Missouri is now scheduled for 19 August, with a final decision expected later this year. During the interim, the company will participate in the class process, including briefing the court regarding objections and assessing the quality and quantity of opt-outs. On PCBs, as previously communicated, we aim to enforce the indemnity agreements Monsanto had in place, and there's a case now moving forward in federal court.

Speaker #1: During the interim, the company will participate in the class process, including briefing the court regarding objections and assessing the quality and quantity of opt-outs.

Speaker #1: On PCBs, as previously communicated, we aim to enforce the indemnity agreements Monsanto had in place, and there's a case now moving forward in federal court.

Speaker #1: Overall, our containment strategy is in a strong place, with some important milestones ahead. We remain focused on making the right decisions for the company both in the moment and for the long term.

William Anderson: Overall, our containment strategy is in a strong place with some important milestones ahead. We remain focused on making the right decisions for the company, both in the moment and for the long term. Over the past two and a half years, we've been laser-focused on a clear set of priorities, rejuvenating the Pharmaceuticals pipeline, significantly containing litigation, de-leveraging, improving profitability at Crop Science, and making Bayer leaner, more dynamic, and more productive. We've progressed in each of these areas, and each of them has demanded intense focus. It's imperative that we maintain that focus. We're concentrating on delivering our commitments and ensuring the best future for Bayer. With that, I will hand it over to Judith to walk you through the financials, as well as give some of her first impressions of the company.

Bill Anderson: Overall, our containment strategy is in a strong place with some important milestones ahead. We remain focused on making the right decisions for the company, both in the moment and for the long term. Over the past two and a half years, we've been laser-focused on a clear set of priorities, rejuvenating the Pharmaceuticals pipeline, significantly containing litigation, de-leveraging, improving profitability at Crop Science, and making Bayer leaner, more dynamic, and more productive.

Speaker #1: Over the past 2.5 years, we've been laser-focused on a clear set of priorities, rejuvenating the pharma pipeline, significantly containing litigation, deleveraging, improving profitability at crop science, and making Bayer leaner, more dynamic, and more productive.

Speaker #1: And we've progressed in each of these areas, and each of them has demanded intense focus. It's imperative that we maintain that focus, so we're concentrating on delivering our commitments and ensuring the best future for Bayer.

Bill Anderson: We've progressed in each of these areas, and each of them has demanded intense focus. It's imperative that we maintain that focus. We're concentrating on delivering our commitments and ensuring the best future for Bayer. With that, I will hand it over to Judith to walk you through the financials, as well as give some of her first impressions of the company. She's joined at a pivotal time for Bayer, and she's been all in from day one. Judith, over to you.

Speaker #1: So with that, I'll hand it over to Judith to walk you through the financials, as well as give some of her first impressions of the company.

Speaker #1: So she's joined at a pivotal time for Bayer, and she's been all in from day one. Judith, over to you.

William Anderson: She's joined at a pivotal time for Bayer, and she's been all in from day one. Judith, over to you.

Speaker #2: Thank you, Bill. And welcome, everyone, to the call. It's a pleasure to be with you today. Also, given that it's the first time that we're actually talking in this forum.

Judith Hartmann: Thank you, Bill. Welcome everyone to the call. It's a pleasure to be with you today. Given that it's the first time that we're actually talking in this forum. I'm delighted to have joined Bayer at such an exciting time. The team has made significant progress on litigation, and we remain firmly focused on containing this overhang. The goal remains that Bayer is increasingly valued for the strength of its businesses, innovation, and its growth potential. Having spent my first month listening to customers, colleagues, and investors, three themes stand out. First, Bayer's innovation engine is a fundamental competitive advantage. Our leadership positions are built on long-standing R&D capabilities that farmers, patients, and consumers rely on. Our teams are committed to innovate for our mission.

Speaker #2: I'm delighted to have joined Bayer at such an exciting time. The team has made significant progress on litigation, and we remain firmly focused on containing this overhang.

Speaker #2: The goal remains that Bayer is increasingly valued for the strength of its businesses, innovation, and its growth potential. Having spent my first months listening to customers, colleagues, and investors, three themes stand out.

Speaker #2: First, Bayer's innovation engine is a fundamental competitive advantage. Our leadership positions are built on long-standing R&D capabilities that farmers, patients, and consumers rely on.

Judith Hartmann: First, Bayer's innovation engine is a fundamental competitive advantage. Our leadership positions are built on long-standing R&D capabilities that farmers, patients, and consumers rely on. Our teams are committed to innovate for our mission. Second, we have attractive growth opportunities ahead of us, supported by powerful long-term trends and strong positions in very large markets with growing and aging populations. Our new operating model has made us leaner and more customer-focused.

Speaker #2: Our teams are committed to innovate for our mission. Second, we have attractive growth opportunities ahead of us, supported by powerful long-term trends and strong positions in very large markets with growing and aging populations.

Judith Hartmann: Second, we have attractive growth opportunities ahead of us, supported by powerful long-term trends and strong positions in very large markets with growing and aging populations. Our new operating model has made us leaner and more customer-focused. Third, our financial priorities are clear: to continue to strengthen the balance sheet, to improve productivity and cash generation, and to create flexibility to invest for future growth in next-generation medicines, ag technologies, and Consumer Health. While we made good progress on the transformation, there's still important work ahead. I see a clear opportunity to build on the momentum with strong execution and financial discipline to deliver sustainable value. With that, let me turn to our financial results. Net sales increased by 3% to €24.3 billion in H1. In Q2, sales increased by 2% to €10.9 billion.

Speaker #2: Our new operating model has made us leaner and more customer-focused. Third, our financial priorities are clear. To continue to strengthen the balance sheet, to improve productivity and cash generation, and to create flexibility to invest for future growth in next-generation medicines, ag technologies, and consumer health.

Judith Hartmann: Third, our financial priorities are clear: to continue to strengthen the balance sheet, to improve productivity and cash generation, and to create flexibility to invest for future growth in next-generation medicines, ag technologies, and Consumer Health. While we made good progress on the transformation, there's still important work ahead. I see a clear opportunity to build on the momentum with strong execution and financial discipline to deliver sustainable value. With that, let me turn to our financial results.

Speaker #1: Potential. Having spent my first month listening to customers, colleagues, and investors, three themes stand out. First, Bayer's innovation engine is a fundamental competitive advantage. Our leadership positions are built on long-standing R&D capabilities that farmers, patients, and consumers rely on.

Speaker #2: While we made good progress on the transformation, there's still important work ahead, and I see a clear opportunity to build on the momentum with strong execution and financial discipline to deliver sustainable value.

Speaker #2: With that, let me turn to our financial results. Net sales increased by 3% to $24.3 billion in the first 6 months. In Q2, sales increased by 2% to $10.9 billion.

Speaker #1: Our teams are committed to innovating for our mission. Second, we have attractive growth opportunities ahead of us, supported by powerful long-term trends and strong positions in very large markets with growing and aging populations.

Judith Hartmann: Net sales increased by 3% to €24.3 billion in H1. In Q2, sales increased by 2% to €10.9 billion. EBITDA before special items rose 7% to €6.6 billion in H1, including an increase of 2% to €2.1 billion in Q2. Foreign exchange effects were not a material headwind this quarter. Core earnings per share came in at €3.66 for H1. This is consistent with the underlying business seasonality and our expectations for the full year. If you look at Q2 specifically, Core EPS of EUR 0.95 was 17% below prior year, given non-recurring benefits in taxes and the reconciliation results in 2025.

Speaker #2: EBITDA before special items rose 7% to $6.6 billion in the first half, including an increase of 2% to $2.1 billion in the second quarter.

Judith Hartmann: EBITDA before special items rose 7% to €6.6 billion in H1, including an increase of 2% to €2.1 billion in Q2. Foreign exchange effects were not a material headwind this quarter. Core earnings per share came in at €3.66 for H1. This is consistent with the underlying business seasonality and our expectations for the full year. If you look at Q2 specifically, Core EPS of EUR 0.95 was 17% below prior year, given non-recurring benefits in taxes and the reconciliation results in 2025. Both items show a more normalized pattern this year, in line with our expectations. Let's move on to free cash flow. This year, material litigation-related payouts amounting to €2.5 billion in H1 drove the negative cash flow and explained the decline versus the prior year.

Speaker #1: Our new operating model has made us leaner and more customer-focused. Third, our financial priorities are clear: to continue to strengthen the balance sheet, to improve productivity and cash generation, and to create flexibility to invest for future growth in next-generation medicines, ag technologies, and consumer health.

Speaker #2: Foreign exchange effects were not a material headwind this quarter. Core earnings per share came in at €3.66 for the first 6 months, this is consistent with the underlying business seasonality and our expectations for the full year.

Speaker #1: While we made good progress on the transformation, there's still important work ahead. I see a clear opportunity to build on the momentum with strong execution and financial discipline to deliver sustainable value.

Speaker #2: If you look at the second quarter specifically, core EPS of $95 was 17% below prior year, given non-recurring benefits in taxes and the reconciliation results in 2025.

Speaker #1: With that, let me turn to our financial results. Net sales increased by 3% to $24.3 billion in the first six months. In Q2, sales increased by 2% to $10.9 billion.

Speaker #2: Both items show a more normalized pattern this year, in line with our expectations. Let's move on to free cash flow. This year, material litigation-related payouts amounting to $2.5 billion in the first half drove the negative cash flow and explained the decline versus the prior year.

Judith Hartmann: Both items show a more normalized pattern this year, in line with our expectations. Let's move on to free cash flow. This year, material litigation-related payouts amounting to €2.5 billion in H1 drove the negative cash flow and explained the decline versus the prior year. For Q2, we saw higher incentive payouts compared to prior year. Finally, net financial debt remained rather stable, with a slight increase to €33.6 billion compared to Q2 2025.

Speaker #1: EBITDA before special items rose 7% to $6.6 billion in the first half, including an increase of 2% to $2.1 billion in the second quarter.

Speaker #1: Foreign exchange effects were not a material headwind this quarter. Core earnings per share came in at €3.66 for the first six months. This is consistent with the underlying business seasonality and our expectations for the full year.

Speaker #2: For the second quarter, we saw higher incentive payouts compared to prior year. Finally, net financial debt remained rather stable, with a slight increase to $33.6 billion compared to the second quarter of 2025.

Judith Hartmann: For Q2, we saw higher incentive payouts compared to prior year. Finally, net financial debt remained rather stable, with a slight increase to €33.6 billion compared to Q2 2025. Compared to the end of Q1 this year, net financial debt increased by €1.1 billion, driven by litigation payouts, the Profuse acquisition for our Pharmaceuticals business, and foreign exchange. In recent weeks, we successfully completed two important financing transactions. The €3 billion equity investment from Apollo marks an important strategic milestone. It strengthens our capital structure and provides additional flexibility for future financing needs. Upon closing, it will reduce our net financial debt in H2. We have since successfully placed $5 billion in US dollar bonds, further demonstrating our ability to access the capital markets.

Speaker #1: If you look at the second quarter specifically, core EPS of $0.95 was 17% below prior year, given non-recurring benefits in taxes and the reconciliation results in 2025.

Speaker #2: Compared to the end of the first quarter this year, net financial debt increased by $1.1 billion driven by litigation payouts, the profuse acquisition for our pharma business, and foreign exchange.

Judith Hartmann: Compared to the end of Q1 this year, net financial debt increased by €1.1 billion, driven by litigation payouts, the Profuse acquisition for our Pharmaceuticals business, and foreign exchange. In recent weeks, we successfully completed two important financing transactions. The €3 billion equity investment from Apollo marks an important strategic milestone. It strengthens our capital structure and provides additional flexibility for future financing needs.

Speaker #2: In recent weeks, we successfully completed two important financing transactions. The $3 billion equity investment from Apollo marks an important strategic milestone. It strengthens our capital structure, and provides additional flexibility for future financing needs.

Speaker #1: Both items show a more normalized pattern this year, in line with our expectations. Let's move on to free cash flow. This year, material litigation-related payouts amounting to $2.5 billion in the first half drove the negative cash flow and explain the decline versus the prior year.

Speaker #2: Upon closing, it will reduce our net financial debt in the second half of the year. We have since successfully placed $5 billion in USD bonds, further demonstrating our ability to access the capital markets.

Judith Hartmann: Upon closing, it will reduce our net financial debt in H2. We have since successfully placed $5 billion in US dollar bonds, further demonstrating our ability to access the capital markets. These achievements have been an important team effort, and I would like to sincerely thank all colleagues who contributed to this and importantly to our H1 results. Overall, our performance puts us well on track to deliver our full year guidance. We reiterate our group outlook on sales, earnings, and free cash flow at constant currencies for the full year 2026.

Speaker #1: For the second quarter, we saw higher incentive payouts compared to the prior year. Finally, net financial debt remained rather stable, with a slight increase to $33.6 billion compared to the second quarter of 2025.

Speaker #2: These achievements have been an important team effort, and I would like to sincerely thank all colleagues who contributed to this and, importantly, to our first half results.

Judith Hartmann: These achievements have been an important team effort, and I would like to sincerely thank all colleagues who contributed to this and importantly to our H1 results. Overall, our performance puts us well on track to deliver our full year guidance. We reiterate our group outlook on sales, earnings, and free cash flow at constant currencies for the full year 2026. Our outlook reflects a strong performance in the H1, but also the anticipated dynamics for the remainder of the year. In addition, we remain mindful of the dynamic external environment. On net financial debt, we have reflected the minority equity investment by Apollo, with closing expected in the H2 of this year. With that, we now anticipate net financial debt in the range of EUR 29 billion to 30 billion, down from previously guided EUR 32 billion to 33 billion.

Speaker #1: Compared to the end of the first quarter this year, net financial debt increased by €1.1 billion, driven by litigation payouts, the previous acquisition for our Pharma business, and foreign exchange.

Speaker #2: Overall, our performance puts us well on track to deliver our full-year guidance, with us reiterate our group outlook on sales/earnings and free cash flow, at constant currencies for the full year 2026.

Speaker #1: In recent weeks, we successfully completed two important financing transactions. The $3 billion equity investment from Apollo marks an important strategic milestone. It strengthens our capital structure and provides additional flexibility for future financing needs.

Speaker #2: Our outlook reflects a strong performance in the first half, but also the anticipated dynamics for the remainder of the year. In addition, we remain mindful of the dynamic external environment.

Judith Hartmann: Our outlook reflects a strong performance in the H1, but also the anticipated dynamics for the remainder of the year. In addition, we remain mindful of the dynamic external environment. On net financial debt, we have reflected the minority equity investment by Apollo, with closing expected in the H2 of this year. With that, we now anticipate net financial debt in the range of EUR 29 billion to 30 billion, down from previously guided EUR 32 billion to 33 billion.

Speaker #1: Upon closing, it will reduce our net financial debt in the second half of the year. We have since successfully placed $5 billion in USD bonds, further demonstrating our ability to access the capital markets.

Speaker #2: On net financial debt, we have reflected the minority equity investment by Apollo with closing expected in the second half of this year. With that, we now anticipate net financial debt in the range of $29 billion to $30 billion down from previously guided $32 to $33 billion.

Speaker #1: These achievements have been an important team effort, and I would like to sincerely thank all colleagues who contributed to this and, importantly, to our first-half results.

Speaker #2: Overall, we currently see a balanced risk and opportunity profile for our full-year outlook, which continues to include our latest assessments on several external factors and geopolitics.

Judith Hartmann: Overall, we currently see a balanced risk and opportunity profile for our full-year outlook, which continues to include our latest assessments on several external factors and geopolitics. Looking ahead, we continue to closely following several key topics that remain fluid. For Crop Science, we continue to monitor geopolitical and weather-related developments, including potential El Niño impacts. Weather volatility could affect planting and yields in some regions. Our technology-based seed and crop protection solutions are helping growers to manage these challenges. For our pharma business, we do not expect tariffs to materially affect our outlook this year. At the same time, we remain focused on developments in global drug pricing, particularly around MFN policies, and continue to evaluate their potential implications for our pricing and launch strategies.

Speaker #1: Overall, our performance puts us well on track to deliver our full-year guidance, with us reiterating our group outlook on sales, earnings, and free cash flow at constant currencies for the full year 2026.

Speaker #2: Looking ahead, we continue to closely following several key topics that remain fluid. For crop science, we continue to monitor geopolitical and weather-related developments, including potential El Niño impacts.

Speaker #1: Our outlook reflects a strong performance in the first half, but also the anticipated dynamics for the remainder of the year. In addition, we remain mindful of the dynamic external environment.

Speaker #2: Weather volatility could affect planting and yields in some regions. Our technology-based seed and crop protection solutions are helping growers to manage these challenges. For our pharma business, we do not expect tariffs to materially affect our outlook this year.

Speaker #1: On net financial debt, we have reflected the minority equity investment by Apollo, with closing expected in the second half of this year. With that, we now anticipate net financial debt in the range of €29 billion to €30 billion, down from the previously guided €32 billion to €33 billion.

Judith Hartmann: For our pharma business, we do not expect tariffs to materially affect our outlook this year. At the same time, we remain focused on developments in global drug pricing, particularly around MFN policies, and continue to evaluate their potential implications for our pricing and launch strategies. For Consumer Health, key variables in the H2 of the year remain the trajectory of consumer sentiment in the US and other key markets, the performance of seasonal categories, and developments in the macroeconomic environment.

Speaker #2: At the same time, we remain focused on developments in global drug pricing, particularly around MFN policies, and continue to evaluate their potential implications for our pricing and launch strategies.

Speaker #1: Overall, we currently see a balanced risk and opportunity profile for our full-year outlook, which continues to include our latest assessments on several external factors and geopolitics.

Speaker #2: For consumer health, key variables in the second half of the year remain the trajectory of consumer sentiment in the US and other key markets, the performance of seasonal categories, and developments in the macroeconomic environment.

Judith Hartmann: For Consumer Health, key variables in the H2 of the year remain the trajectory of consumer sentiment in the US and other key markets, the performance of seasonal categories, and developments in the macroeconomic environment. Finally, on foreign exchange rates, in line with our practice, we have updated the foreign exchange estimate based on June month end spot rates compared to constant currencies. This leads to a slightly lower headwind to net sales and to Core earnings per share compared to the last estimate. With that, over to you, Michael, for the Q&A.

Speaker #1: Looking ahead, we continue to closely follow several key topics that remain fluid. For Crop Science, we continue to monitor geopolitical and weather-related developments, including potential El Niño impacts.

Speaker #2: And finally, on foreign exchange rates, in line with our practice, we have updated the foreign exchange estimate based on June month's end spot rates, compared to constant currency currencies this leads to a slightly lower headwind to net sales, and to core earnings per share, compared to the last estimate.

Judith Hartmann: Finally, on foreign exchange rates, in line with our practice, we have updated the foreign exchange estimate based on June month end spot rates compared to constant currencies. This leads to a slightly lower headwind to net sales and to Core earnings per share compared to the last estimate. With that, over to you, Michael, for the Q&A.

Speaker #1: Weather volatility could affect planting and yields in some regions. Our technology-based seed and crop protection solutions are helping growers manage these challenges. For our Pharma business, we do not expect tariffs to materially affect our outlook this year.

Speaker #2: And with that, over to you, Michael, for the Q&A.

Speaker #1: At the same time, we remain focused on developments in global drug pricing, particularly around MFN policies, and continue to evaluate their potential implications for our pricing and launch strategies.

Speaker #1: Many thanks, Judith. Many thanks, Bill. Let's now start the Q&A session. Here's what you need to do to ask a question. Make sure that Zoom is the only active chat program open on your computer, and make sure your microphone is activated in Zoom.

Michael Preuss: Many thanks, Judith. Many thanks, Bill. Let's now start the Q&A session. Here's what you need to do to ask a question. Make sure that Zoom is the only active chat program open on your computer, and make sure your microphone is activated in Zoom. If that is the case, you can use the raise hand function. We will register your interest, and when it's your turn, I will call your name. A pop-up window will then open on your screen, and when you see this pop-up window, please unmute yourself and ask your question, and your camera will remain off. Okay, now let's get started. The first question will come from Sonja Wind from Bloomberg, then followed by Antje Höning, Rheinische Post. The first question goes to Sonja. Sonja, over to you.

Speaker #1: For Consumer Health, key variables in the second half of the year remain the trajectory of consumer sentiment in the US and other key markets, the performance of seasonal categories, and developments in the macroeconomic environment.

Speaker #1: If that is the case, you can use the raise hand function. We will register your interest, and when it's your turn, I will call your name.

Speaker #1: A pop-up window will then open on your screen, and when you see this pop-up window, please unmute yourself and ask your question. And your camera will remain off.

Speaker #1: OK, now let's get started. And the first question will come from Sonja Wind from Bloomberg, and then followed by Antje Höning, Rheinische Post. But the first question goes to Sonja.

Michael Preuss: Okay, now let's get started. The first question will come from Sonja Wind from Bloomberg, then followed by Antje Höning, Rheinische Post. The first question goes to Sonja. Sonja, over to you.

Speaker #1: And finally, on foreign exchange rates, in line with our practice, we have updated the foreign exchange estimate based on June month-end spot rates, compared to constant currency rates.

Speaker #1: Sonja, over to you.

Speaker #1: This leads to a slightly lower headwind to net sales and to core earnings per share compared to the last estimate. And with that, over to you, Michael, for the Q&A.

Speaker #3: Hello, good morning. Can you hear me?

Sonja Wind: Hello. Good morning. Can you hear me?

Speaker #1: Yes, we can hear you.

Michael Preuss: Yes, we can hear you.

Speaker #3: Perfect. Thank you for taking my question. I have two questions. The first one is on your launch strategy, which you already touched on. So for Azodexian, for example, are you planning to launch this in Europe as well, specifically Germany, where the environment has become a bit less favorable for drug makers?

Sonja Wind: Perfect. Thank you for taking my question. I have two questions. The first one is on your launch strategy, which you already touched on. For asundexian, for example, are you planning to launch this in Europe as well, specifically Germany, where the environment has become a bit less favorable for drug makers? Secondly, on the litigation topic, do you have any comments so far, or at least a timing for when you will comment on the number of opt-outs from the settlement proposal?

Speaker #2: Many thanks, Judith. Many thanks, Bill. Let's now start the Q&A session. Here's what you need to do to ask a question: make sure that Zoom is the only active chat program open on your computer, and make sure your microphone is activated in Zoom.

Speaker #3: And secondly, on the litigation topic, do you have any comments so far, or at least a timing for when you will comment on the number of opt-outs from the settlement proposal?

Speaker #2: If that is the case, you can use the 'raise hand' function. We will register your interest, and when it's your turn, I will call your name.

Speaker #2: A pop-up window will then open on your screen. When you see this pop-up window, please unmute yourself and ask your question. Your camera will remain off.

Speaker #1: Yeah, thanks, Sonja. Good to hear from you. And happy summer. Let's see. First, regarding our launch strategy for Azodexian, well, when we develop a medicine like Azodexian that we think has potential to help millions of people around the world prevent secondary strokes, we certainly have every intention of launching in every country possible.

William Anderson: Thanks, Sonja. Good to hear from you, and happy summer. Let's see. First, regarding our launch strategy for asundexian. Well, when we develop a medicine like asundexian that we think has potential to help millions of people around the world prevent secondary strokes, we certainly have every intention of launching in every country possible. I think we urgently need more developed countries to shoulder their share of the burden on pricing. I think for too long, many countries in the West, outside of the United States, have kind of taken a ride on the US paying higher prices and then other countries paying lower prices. Just as an example, in the time since AMNOG was formed, prices for pharmaceuticals in Germany have gone down about 10%. Of course, over that same time, consumer prices have increased 30% or 40%.

Speaker #2: OK, now let's get started. The first question will come from Sonja Vint from Bloomberg, followed by Antje Honing from Rheinische Post. The first question goes to Sonja.

Bill Anderson: Thanks, Sonja. Good to hear from you, and happy summer. Let's see. First, regarding our launch strategy for asundexian. Well, when we develop a medicine like asundexian that we think has potential to help millions of people around the world prevent secondary strokes, we certainly have every intention of launching in every country possible. I think we urgently need more developed countries to shoulder their share of the burden on pricing.

Speaker #2: Sonja, over to you.

Speaker #3: Hello, good morning. Can you hear me?

Speaker #2: Yes, we can hear you.

Speaker #3: Perfect. Thank you for taking my question. I have two questions. The first one is on your launch strategy, which you already touched on. So for Dexian, for example, are you planning to launch this in Europe as well, specifically Germany, where the environment has become a bit less favorable for drug makers?

Speaker #1: I think we urgently need more developed countries to shoulder their share of the burden on pricing. I think for too long, many countries in the West, outside of the United States, have kind of taken a ride on the US, paying higher prices, and then other countries paying lower prices.

Bill Anderson: I think for too long, many countries in the West, outside of the United States, have kind of taken a ride on the US paying higher prices and then other countries paying lower prices. Just as an example, in the time since AMNOG was formed, prices for pharmaceuticals in Germany have gone down about 10%. Of course, over that same time, consumer prices have increased 30% or 40%. This is not a pricing approach that is sustainable in any way, and in particular, it really threatens future innovation. We hope to launch asundexian around the world, including in Europe and in Germany.

Speaker #3: And secondly, on the litigation topic, do you have any comments so far, or at least a timing for when you will comment on the number of opt-outs from the settlement proposal?

Speaker #1: And just as an example, in the time since Amneg was formed, prices for pharmaceuticals in Germany have gone down about 10%. And of course, over that same time, consumer prices have increased 30% or 40%.

Speaker #2: Yeah, thanks, Sonja. Good to hear from you. And happy summer. Let's see. First, regarding our launch strategy for As and Dexian, well, when we develop a medicine like As and Dexian that we think has potential to help millions of people around the world prevent secondary strokes, we certainly have every intention of launching in every country possible.

Speaker #1: So this is not a pricing approach that is sustainable in any way. And in particular, it really threatens future innovation. So we hope to launch Azodexian around the world, including in Europe and in Germany.

William Anderson: This is not a pricing approach that is sustainable in any way, and in particular, it really threatens future innovation. We hope to launch asundexian around the world, including in Europe and in Germany. We certainly need to have conversations, and we're having those conversations to make sure that it's appropriately valued. Because Pharmaceuticals should not be seen as simply a cost center in a health budget. asundexian is a great example where if you can prevent, and it showed in the phase III trial, 26% reduction in second strokes. I mean, that has enormous impact on healthcare systems in addition to the impact it has on patients' lives and the lives of their families. It also has enormous consequences in terms of keeping people out of hospitals, keeping people out of rehab centers, out of long-term care facilities, and that needs to be appropriately valued.

Speaker #2: I think we urgently need more developed countries to shoulder their share of the burden on pricing. I think for too long, many countries in the West, outside of the United States, have kind of taken a ride on the U.S. paying higher prices, and then other countries paying lower prices.

Speaker #1: But we're certainly need to have conversations, and we're having those conversations to make sure that it's appropriately valued, because pharmaceuticals should not be seen as simply a cost center in a health budget.

Bill Anderson: We certainly need to have conversations, and we're having those conversations to make sure that it's appropriately valued. Because Pharmaceuticals should not be seen as simply a cost center in a health budget. asundexian is a great example where if you can prevent, and it showed in the phase III trial, 26% reduction in second strokes. I mean, that has enormous impact on healthcare systems in addition to the impact it has on patients' lives and the lives of their families.

Speaker #1: Azodexian is a great example, where if you can prevent and it showed in the phase three trial 26% reduction in second strokes. I mean, that has enormous impact on health care systems, in addition to the impact it has on patients' lives and the lives of their families.

Speaker #2: And just as an example, in the time since AMNOG was formed, prices for pharmaceuticals in Germany have gone down about 10%. Of course, over that same time, consumer prices have increased 30% or 40%.

Speaker #1: But it's also has an enormous consequences in terms of keeping people out of hospitals, keeping people out of rehab centers, out of long-term care facilities.

Bill Anderson: It also has enormous consequences in terms of keeping people out of hospitals, keeping people out of rehab centers, out of long-term care facilities, and that needs to be appropriately valued. Unfortunately, in Europe today, that's not appropriately valued. We're working hard on this with policymakers, and we definitely need them to step up and do their part. On the question on litigation and opt-outs. The opt-out period, it closed on 4 June, and that's been confirmed by the courts. The final approval hearing will happen on 19 August.

Speaker #2: So, this is not a pricing approach that is sustainable in any way. In particular, it really threatens future innovation. We hope to launch As and Dexian around the world, including in Europe and in Germany.

Speaker #1: And that needs to be appropriately valued. And unfortunately, in Europe today, that's not appropriately valued. So we're working hard on this with policymakers, and we definitely need them to step up and do their part.

William Anderson: Unfortunately, in Europe today, that's not appropriately valued. We're working hard on this with policymakers, and we definitely need them to step up and do their part. On the question on litigation and opt-outs. The opt-out period, it closed on 4 June, and that's been confirmed by the courts. The final approval hearing will happen on 19 August. That's the scheduled date. There are always some opt-outs. We have this sort of extended period between the 4 June and 19 August dates, and this is a time where we would consider allowing people that were out back in. That's kind of ongoing, and I don't expect that you'll hear much from us on that until the hearing date or after.

Speaker #2: But we certainly need to have conversations, and we're having those conversations to make sure that it's appropriately valued, because pharmaceuticals should not be seen as simply a cost center in a health budget.

Speaker #1: On the question on litigation, and opt-outs, so the opt-out period, it closed on June 4th, and that's been confirmed by the courts. The final approval hearing will happen on August 19th.

Speaker #2: As an example, Asundexian is a great example, where if you can prevent—and it showed in the phase three trial—a 26% reduction in second strokes.

Speaker #1: That's the scheduled date. And so we there are always some opt-outs. We have this sort of extended period between the June 4th and August 19th dates.

Bill Anderson: That's the scheduled date. There are always some opt-outs. We have this sort of extended period between the 4 June and 19 August dates, and this is a time where we would consider allowing people that were out back in. That's kind of ongoing, and I don't expect that you'll hear much from us on that until the hearing date or after.

Speaker #2: I mean, that has enormous impact on health care systems, in addition to the impact it has on patients' lives and the lives of their families.

Speaker #2: But it also has enormous consequences in terms of keeping people out of hospitals, keeping people out of rehab centers, and out of long-term care facilities.

Speaker #1: And this is a time where we would consider allowing people that were out back in. So that's kind of ongoing. And I don't expect that you'll hear much from us on that until the hearing date or after.

Speaker #2: And that needs to be appropriately valued. Unfortunately, in Europe today, that's not appropriately valued. So we're working hard on this with policymakers, and we definitely need them to step up and do their part.

Speaker #3: Thank you.

Antje Höning: Thank you.

Sonja Wind: Thank you.

Speaker #1: Thank you. So the next question comes from Antje Höning, Rheinische Post, followed then by Patricia Weiss from Reuters. Antje, over to you.

Michael Preuss: Thank you. The next question comes from Antje Höning, Rheinische Post, followed then by Patricia Weiss from Reuters. Antje, over to you.

Speaker #2: On the question of litigation and opt-outs: the opt-out period closed on June 4th, and that's been confirmed by the courts. The final approval hearing will happen on August 19th.

Speaker #4: Thank you. Good morning. I have three little questions. First, have you now completed the drug cuts as part of the DFO initiative? And how many jobs have you cut in total?

Antje Höning: Thank you. Good morning. I have three little questions. First, have you now completed the job cuts as part of the DSO initiative, and how many jobs have you cut in total? The second question, are you now considering spinning off divisions? You mentioned it in the past that sometimes it comes back. A third political question, an important decision is coming up for the economy in August. North Rhine-Westphalia wants to phase out coal-fired power generation. Evonik is calling for the coal phase-out to be postponed. Is Bayer calling for that as well? Would you be happy if coal gets more time? Thank you.

Speaker #4: The second question, are you now considering spinning off divisions? You mentioned it in the past that sometimes it comes back. And third, political question, an important decision is coming up for the economy in August.

Speaker #2: That's the scheduled date. And so, there are always some opt-outs. We have this sort of extended period between the June 4 and August 19 dates.

Speaker #2: And this is a time when we would consider allowing people that were out back in. So that's kind of ongoing. And I don't expect that you'll hear much from us on that until the hearing date or after.

Speaker #4: Nordstrom was failure once to phase out coal-fired power generation. So Evonik is calling for the coal phase out to be postponed. Is Bayer calling for that as well?

Speaker #4: Are you would you be happy if coal gets more time? Thank you.

Speaker #2: Thank you. So the next question comes from Antje Honing, Rheinische Post, followed then by Patricia Weiss from Reuters. Antje, over to you.

Speaker #1: Yeah, thanks, Antje. In terms of job numbers, in Q2 of this year, the number of jobs at Bayer was roughly stable. It was about flat.

William Anderson: Yeah. Thanks, Antje. In terms of job numbers, in Q2 of this year, the number of jobs at Bayer was roughly stable. It was about flat. I wouldn't think of it as necessarily indicative of what's to come. I think we've said from the beginning, we don't have a job number in mind. What we want to make sure is that all of our people are able to do their best work every day, and that we have the maximum impact, that everyone has the maximum impact on our mission. That's what our system is designed to do, is basically every 90 days, each team can say, "Hey, do we keep going? Does this team have a reason to exist? Do we keep going? Do we break up and go join other teams? Do we get smaller? Do we need to expand?" These are basically dynamic decisions.

Bill Anderson: Yeah. Thanks, Antje. In terms of job numbers, in Q2 of this year, the number of jobs at Bayer was roughly stable. It was about flat. I wouldn't think of it as necessarily indicative of what's to come. I think we've said from the beginning, we don't have a job number in mind. What we want to make sure is that all of our people are able to do their best work every day, and that we have the maximum impact, that everyone has the maximum impact on our mission. That's what our system is designed to do, is basically every 90 days, each team can say, "Hey, do we keep going?

Speaker #4: Thank you. Good morning. I have three little questions. First, have you now completed the drug cuts as part of the DFO initiative? And how many jobs have you cut in total?

Speaker #1: I wouldn't think of it as necessarily indicative of what's to come. I think we've said from the beginning, we don't have a job number in mind.

Speaker #4: The second question: Are you now considering spinning off divisions? You mentioned in the past that sometimes it comes back. And third, a political question—an important decision is coming up for the economy in August.

Speaker #1: What we want to make sure is that all of our people are able to do their best work every day and that we have the maximum impact, that everyone has the maximum impact on our mission.

Speaker #4: Nordstrom's failure once to phase out coal-fired power generation—so Evonik is calling for the coal phase-out to be postponed. Is Bayer calling for that as well?

Speaker #1: And that's what our system is designed to do, is basically every 90 days, each team can say, hey, do we keep going? Does this team have a reason to exist?

Bill Anderson: Does this team have a reason to exist? Do we keep going? Do we break up and go join other teams? Do we get smaller? Do we need to expand?" These are basically dynamic decisions. That's why we call our system Dynamic Shared Ownership, is that every 90 days, we have the opportunity to adjust.

Speaker #4: Would you be happy if coal gets more time? Thank you.

Speaker #1: Do we keep going? Do we break up and go join other teams? Do we get smaller? Do we need to expand? And these are basically dynamic decisions.

Speaker #2: Yeah, thanks, Antje. In terms of job numbers, in Q2 of this year, the number of jobs at Bayer was roughly stable. It was about flat.

Speaker #1: That's why we call our system Dynamic Shared Ownership, is that every 90 days, we have the opportunity to adjust. I think we're going to continue to pursue increased productivity because that's in our DNA now, that everyone at Bayer understands that our goal is not just to preserve the status quo, but we have this mission that's behind us here, health for all, hunger for none.

William Anderson: That's why we call our system Dynamic Shared Ownership, is that every 90 days, we have the opportunity to adjust. I think we're going to continue to pursue increased productivity because that's in our DNA now, that everyone at Bayer understands that our goal is not just to preserve the status quo, but we have this mission that's behind us here, health for all, hunger for none, our goal is to make sure that everybody at Bayer can have a bigger impact on that every 90 days. I know you'd like a simpler answer than that maybe, I think the simplest answer is we're going to do everything we can to make our people more valuable. AI, by the way, incorporation of AI, which is happening very rapidly at Bayer, we have a lot of really amazing examples of how it's making a difference already.

Speaker #2: I wouldn't think of it as necessarily indicative of what's to come. I think we've said from the beginning, we don't have a job number in mind.

Bill Anderson: I think we're going to continue to pursue increased productivity because that's in our DNA now, that everyone at Bayer understands that our goal is not just to preserve the status quo, but we have this mission that's behind us here, health for all, hunger for none, our goal is to make sure that everybody at Bayer can have a bigger impact on that every 90 days. I know you'd like a simpler answer than that maybe, I think the simplest answer is we're going to do everything we can to make our people more valuable.

Speaker #2: What we want to make sure is that all of our people are able to do their best work every day and that we have the maximum impact that everyone has the maximum impact on our mission.

Speaker #1: And our goal is to make sure that everybody at Bayer can have a bigger impact on that every 90 days. So I know you'd like a simpler answer than that maybe, but I think the simplest answer is we're going to do everything we can to make our people more valuable.

Speaker #2: What it's designed to do is, basically, every 90 days, each team can say, "Hey, do we keep going? Does this team have a reason to exist?"

Speaker #2: Do we keep going? Do we break up and go join other teams? Do we get smaller? Do we need to expand? And these are basically dynamic decisions.

Speaker #1: And AI, by the way, incorporation of AI, which is happening very rapidly at Bayer, and we have a lot of really amazing examples of how it's making a difference already.

Bill Anderson: AI, by the way, incorporation of AI, which is happening very rapidly at Bayer, we have a lot of really amazing examples of how it's making a difference already. I think that's going to also be a significant force in making our people more impactful. We're going to have to see, I think you're going to see Bayer getting leaner and more productive over time. You asked about spinning off divisions. The structure topic is one that is always with us because we have three divisions that are different, that's not the normal way of things in the world today.

Speaker #2: That's why we call our system 'Dynamic Shared Ownership'—because every 90 days we have the opportunity to adjust. I think we're going to continue to pursue increased productivity, because that's in our DNA now: everyone at Bayer understands that our goal is not just to preserve the status quo, but we have this mission that's behind us here: 'Health for all, hunger for none.'

Speaker #1: I think that's going to also be a significant force in making our people more impactful. So we're going to have to see. But I think you're going to see Bayer getting leaner and more productive over time.

William Anderson: I think that's going to also be a significant force in making our people more impactful. We're going to have to see, I think you're going to see Bayer getting leaner and more productive over time. You asked about spinning off divisions. The structure topic is one that is always with us because we have three divisions that are different, that's not the normal way of things in the world today. What I say about that is when we started having this conversation together about three years ago, things were looking really not so good for our outlook, we're in a much better position today. We've worked really hard for that. That hasn't come easy.

Speaker #1: You asked about spinning off divisions. The structure topic is one that is always with us because we have three divisions that are different. And that's not the normal way of things in the world today.

Speaker #2: And our goal is to make sure that everybody at Bayer can have a bigger impact on that every 90 days. So I know you'd like a simpler answer than that, maybe.

Speaker #1: What I say about that is when we started having this conversation together about three years ago, things were looking really not so good for our outlook.

Bill Anderson: What I say about that is when we started having this conversation together about three years ago, things were looking really not so good for our outlook, we're in a much better position today. We've worked really hard for that. That hasn't come easy. We regularly assess, and I know Judith just recently joining the team, we regularly assess, hey, what's the best outcome and what's the best approach for all of our stakeholders, our employees, our shareholders? We keep an open mind about it, so we're always looking.

Speaker #2: But I think the simplest answer is we're going to do everything we can to make our people more valuable. And AI, by the way—the incorporation of AI, which is happening very rapidly at Bayer—and we have a lot of...

Speaker #1: And we're in a much better position today. We've worked really hard for that. That hasn't come easy. But we regularly assess, and I know Judith just recently joined in the team.

Speaker #2: Of how it’s making a difference already. I think that’s also going to be a significant force in making our people more impactful, so we’ll have to see.

William Anderson: We regularly assess, and I know Judith just recently joining the team, we regularly assess, hey, what's the best outcome and what's the best approach for all of our stakeholders, our employees, our shareholders? We keep an open mind about it, so we're always looking. We still have these five key priorities that we identified at the time, and we've got really important work to do on those. We've been very disciplined. How do we improve the pharma pipeline? We've made progress on that, but we got more work to do. Likewise, Crop Science, productivity, profitability, we've made progress, much more to do. The debt levels. Settling litigation is an important component of improving our financial health, but it's not inexpensive. We've got to continue to work to strengthen our balance sheet.

Speaker #1: We regularly assess what's hey, what's the best outcome and what's the best approach for all of our stakeholders, our employees, our shareholders? And we keep an open mind about it.

Speaker #2: But I think you're going to see Bayer getting even more productive over time. You asked about spinning off divisions. The structure topic is one that is always with us, because we have three divisions that are different.

Speaker #1: So we're always looking. But we still have these five key priorities that we identified at the time. And we've got really important work to do on those.

Bill Anderson: We still have these five key priorities that we identified at the time, and we've got really important work to do on those. We've been very disciplined. How do we improve the pharma pipeline? We've made progress on that, but we got more work to do. Likewise, Crop Science, productivity, profitability, we've made progress, much more to do. The debt levels. Settling litigation is an important component of improving our financial health, but it's not inexpensive. We've got to continue to work to strengthen our balance sheet.

Speaker #2: And that's not the normal way of things in the world today. What I say about that is, when we started having this conversation together, about three years ago, things were looking really not so good for our outlook.

Speaker #1: We've been very disciplined how do we improve the pharma pipeline? We've made progress on that, but we got more work to do. Likewise, crop science, productivity, profitability, we've made progress.

Speaker #2: And we're in a much better position today. We've worked really hard for that. That hasn't come easy. But we regularly assess, and I know Judith just recently joined the team.

Speaker #1: Much more to do. The debt levels, settling litigation is an important component of improving our financial health, but it's not inexpensive. And so we've got to continue to work to strengthen our balance sheet.

Speaker #2: We regularly assess: What's the best outcome, and what's the best approach for all of our stakeholders—our employees, our shareholders? And we keep an open mind about it.

Speaker #1: We've got the need to drive efficiencies everywhere and be a leaner, faster, more innovative company. We've made great progress with Dynamic Shared Ownership. So I'd say we've gone from a position of weakness on this, of being rather on the bureaucratic end of the spectrum, now I would say we're probably one of the least bureaucratic large companies that anyone would ever see.

William Anderson: We've got the need to drive efficiencies everywhere and be a leaner, faster, more innovative company. We've made great progress with Dynamic Shared Ownership. I'd say we've gone from a position of weakness on this, of being rather on the bureaucratic end of the spectrum. Now I would say we're probably one of the least bureaucratic large companies that anyone would ever see. Now this is a position of strength, and we can use this, and we've got momentum. We're going to do that. I think overall, this is paying off right now for shareholders, because they see the valuation upside that comes with focus on these things, reducing the litigation overhang, increasing our financial performance like we delivered this quarter, strengthening our balance sheet.

Bill Anderson: We've got the need to drive efficiencies everywhere and be a leaner, faster, more innovative company. We've made great progress with Dynamic Shared Ownership. I'd say we've gone from a position of weakness on this, of being rather on the bureaucratic end of the spectrum. Now I would say we're probably one of the least bureaucratic large companies that anyone would ever see. Now this is a position of strength, and we can use this, and we've got momentum.

Speaker #2: So we're always looking. But we still have these five key priorities that we identified at the time, and we've got really important work to do on those.

Speaker #2: We've been very disciplined. How do we improve the pharma pipeline? We've made progress on that, but we've got more work to do. Likewise, in Crop Science—productivity, profitability—we've made progress.

Speaker #1: But now this is a position of strength, and we can use this. And we've got momentum. So we're going to do that. I think overall, this is paying off right now for shareholders.

Speaker #2: There is much more to do. The debt levels and settling litigation are important components of improving our financial health, but it's not inexpensive. So, we must continue to work to strengthen our balance sheet.

Bill Anderson: We're going to do that. I think overall, this is paying off right now for shareholders, because they see the valuation upside that comes with focus on these things, reducing the litigation overhang, increasing our financial performance like we delivered this quarter, strengthening our balance sheet. We will stay open-minded on this topic, but we're not going to allow it to be a distraction for us while we've got this momentum, and we're going to keep focused, really laser focused on those key priorities. That's what I have to say about spinning off divisions.

Speaker #1: Because they see the valuation upside that comes with focus on these things, reducing the litigation overhang, increasing our financial performance like we delivered this quarter.

Speaker #2: We've got the need to drive efficiencies everywhere and be a leaner, faster, more innovative company. We've made great progress with dynamic shared ownership. So I'd say we've gone from a position of weakness on this, of being rather on the bureaucratic end of the spectrum.

Speaker #1: Strengthening our balance sheet. So we will stay open-minded on this topic, but we're not going to allow it to be a distraction for us while we've got this momentum.

William Anderson: We will stay open-minded on this topic, but we're not going to allow it to be a distraction for us while we've got this momentum, and we're going to keep focused, really laser focused on those key priorities. That's what I have to say about spinning off divisions. The question about Nordrhein-Westfalen and coal-fired power. I don't think Judith or I are trying to be experts on energy policy, but I think one thing that's becoming very clear in the world today, and this is also very clear in Germany, if you don't have energy security, you don't have national security. This is not a trivial matter. Again, we're not the experts, although actually Judith has quite a-

Speaker #1: And we're going to keep focused really laser focused on those key priorities. So yeah, that's what I have to say about spinning off divisions.

Speaker #2: Now I would say we're probably one of the least bureaucratic large companies that anyone would ever see. But now, this is a position of strength.

Speaker #1: And then the question about Nordrhein-Westphalia and coal-fired power. I don't think Judith or I are trying to be experts on energy policy, but I think one thing that's becoming very clear in the world today, and this is also very clear in Germany, if you don't have energy security, you don't have national security.

Bill Anderson: The question about Nordrhein-Westfalen and coal-fired power. I don't think Judith or I are trying to be experts on energy policy, but I think one thing that's becoming very clear in the world today, and this is also very clear in Germany, if you don't have energy security, you don't have national security. This is not a trivial matter. Again, we're not the experts, although actually Judith has quite a-

Speaker #2: And we can use this. And we've got momentum, so we're going to do that. I think overall, this is paying off right now for shareholders.

Speaker #2: Because they see the valuation upside that comes with focus on these things—reducing the litigation overhang, increasing our financial performance like we delivered this quarter.

Speaker #1: And this is not a trivial matter. And so again, we're not the experts, although actually Judith has quite a bit of knowledge in the energy field.

Speaker #2: Strengthening our balance sheet. So we will stay open-minded on this topic, but we're not going to allow it to be a distraction for us while we've got this momentum.

Judith Hartmann: I do

Judith Hartmann: bit of knowledge in the energy field. I would strongly urge policymakers in Germany and Europe to pay more attention to this because industries are going away. Bayer is not the most energy-dependent company around. There is a lot of other companies in Germany and in Europe that are more energy-dependent than we are, and they are suffering mightily. That is a vital interest to all the people of Germany and of Europe. I do not think we have an official position on that one topic. I would say on energy policy, we need more affordable energy for Europe, for jobs, for the economy, and for the future.

Speaker #1: But I would strongly urge policymakers in Germany and Europe to pay more attention to this because industries are going away. And Bayer is not the most energy dependent company around.

Speaker #2: And we're going to keep really laser-focused on those key priorities. So yeah, that's what I have to say about spinning off divisions. And then the question about Nordrhein-Westfalen and coal-fired power.

Speaker #1: I mean, there's a lot of other companies in Germany and in Europe that are more energy dependent than we are. And they are suffering mightily.

Speaker #2: I don't think Judith or I are trying to be experts on energy policy. But I think one thing that's becoming very clear in the world today—and this is also very clear in Germany—if you don't have energy security, you don't have national security.

Speaker #1: And that's a vital interest to all the people of Germany and of Europe. So I don't think we have an official position on that one topic.

Speaker #1: But I would say on energy policy, we need more affordable energy for Europe, for jobs, for the economy, and for the future.

Speaker #2: And this is not a trivial matter. And so, again, we're not the experts, although actually Judith has quite a bit of knowledge in the energy field.

Speaker #2: Thank you very much.

Antje Höning: Thank you, Bill.

Speaker #1: Thank you. So next question comes from Patricia Weiss from Reuters. Followed then by Bert Frondhoff from Handelsblatt. Patricia. You are next.

Michael Preuss: Thank you. Next question comes from Patricia Weiss from Reuters, followed by Bert Frönter from Handelsblatt. Patricia, you are next.

Speaker #2: But I would strongly urge policymakers in Germany and Europe to pay more attention to this, because industries are going away. And Bayer is not the most energy-dependent company around.

Speaker #3: Hello, good morning. I hope you can hear me well in Leverkusen.

Patricia Weiss: Hello, good morning. I hope you can hear me well in Leverkusen.

Speaker #1: Yes, we can.

Speaker #2: I mean, there are a lot of other companies in Germany and in Europe that are more energy dependent than we are, and they are suffering mightily.

Michael Preuss: Yes, we can.

Speaker #3: Great, wonderful. Let me return to the question of Bayer's corporate structure. You recently carved out the climate business into the standalone entity. I'm saying the move would make the business more agile.

Patricia Weiss: Great, wonderful. Let me return to the question of Bayer's corporate structure. You recently carved out the glyphosate business into the standalone entity and saying the move would make the business more agile. Is that rather the first step toward a sale or spin-off of the business? You also said you will stay open-minded, like what would be the most possible scenario at the moment? Does the Supreme Court ruling in Bayer's favor now effectively eliminate the risk of future multi-billion EUR glyphosate provisions? My last question, the debt reduction is progressing faster than expected, thanks to the Apollo deal. Will you primarily use this to further strengthen the balance sheet, or are you also considering larger M&A transactions to bolster the Pharmaceuticals pipeline? Thank you very much.

Speaker #2: And that's a vital interest to all the people of Germany and of Europe. So I don't think we have an official position on that one topic.

Speaker #3: Or is that rather the first step toward a sale or spin-off of the business? And you also said you will stay open-minded. What would be the most possible scenario at the moment?

Speaker #2: But I would say, on energy policy, we need more affordable energy for Europe—for jobs, for the economy, and for the future. Thank you.

Speaker #3: And does the Supreme Court ruling in Bayer's favor now effectively eliminate the risk of future multibillion dollar climate provisions? And my last question, the debt reduction is progressing faster than expected.

Speaker #2: So, the next question comes from Patricia Weiss from Reuters, followed by Bert Freunter from Handelsblatt. Patricia, you're next.

Patricia Weiss: My last question, the debt reduction is progressing faster than expected, thanks to the Apollo deal. Will you primarily use this to further strengthen the balance sheet, or are you also considering larger M&A transactions to bolster the Pharmaceuticals pipeline? Thank you very much.

Speaker #1: Hello, good morning. I hope you can hear me well in Leverkusen.

Speaker #3: Thanks to the Apollo deal, will you primarily use this further strengthen the balance sheet, or are you also considering larger M&A transactions to bolster the pharmaceutical pipeline?

Speaker #2: Yes, we can.

Speaker #1: Great, wonderful. Let me return to the question of Bayer's corporate structure. You recently carved out the Crop Science business into a standalone entity, saying the move would make the business more agile.

Speaker #3: Thank you very much.

Speaker #1: Yeah, thanks Patricia. Regarding Ruvion, I don't think we would really say more than what we've said. Because like in anything that's a structural move, I think you have to kind of take things one step at a time and you do what makes sense.

William Anderson: Thanks, Patricia. Regarding Ruveon, I don't think we would really say more than what we've said because, in anything that's a structural move, I think you have to take things one step at a time and you do what makes sense at the time. We think it makes all the sense in the world, given the competitive state of that business, to have this sort of semi-independent entity that can really move fast and take the actions that are required to be competitive in that space. I don't think there's anything else to say on that for the moment. Regarding the SCOTUS ruling and what it means for glyphosate.

Bill Anderson: Thanks, Patricia. Regarding Ruveon, I don't think we would really say more than what we've said because, in anything that's a structural move, I think you have to take things one step at a time and you do what makes sense at the time. We think it makes all the sense in the world, given the competitive state of that business, to have this sort of semi-independent entity that can really move fast and take the actions that are required to be competitive in that space. I don't think there's anything else to say on that for the moment. Regarding the SCOTUS ruling and what it means for glyphosate.

Speaker #1: Is that, rather, the first step toward a sale or spin-off of the business? And you also said you will stay open-minded. What would be the most likely scenario at the moment?

Speaker #1: And does the Supreme Court ruling in Bayer's favor now effectively eliminate the risk of future multi-billion-dollar crisis provisions? And my last question: the debt reduction is progressing faster than expected.

Speaker #1: At the time. And we think it makes all the sense in the world given the competitive state of that business to have this sort of semi-independent entity that can really move fast and take the actions that are required to be competitive in that space.

Speaker #1: Thanks to the Apollo deal, will you primarily use this to further strengthen the balance sheet, or are you also considering larger M&A transactions to bolster the pharmaceutical pipeline?

Speaker #1: So I don't think there's anything else to say on that for the moment. Regarding the Scotus ruling and what it means for glyphosate, I mean, it certainly is a very important step.

Speaker #1: Thank you very much.

Speaker #2: Yeah. Thanks, Patricia. Regarding Ruvion, I don't think we would really say more than what we've said. Because like in anything that's a structural move, I think you have to kind of take things one step at a time, and you do what makes sense.

William Anderson: It certainly is a very important step because the court is acknowledging what we've been saying all along, which is that, if the nation's leading authority has approved a label and has ruled on the question of safety of a product, then a manufacturer that's done everything, as Monsanto has done to provide information, updates, and to keep that label current, they can't be sued for failure to warn. That just doesn't make any sense. I think that's a really important step for limiting litigation in the future. That being said, I think in order to really resolve this, we need to get the class done and make sure that there's clarity for all involved, and so that's why we're pursuing that. I think, our balance sheet, we want to strengthen that. We know we need to invest, for example, in the Pharmaceuticals field.

Bill Anderson: It certainly is a very important step because the court is acknowledging what we've been saying all along, which is that, if the nation's leading authority has approved a label and has ruled on the question of safety of a product, then a manufacturer that's done everything, as Monsanto has done to provide information, updates, and to keep that label current, they can't be sued for failure to warn. That just doesn't make any sense. I think that's a really important step for limiting litigation in the future.

Speaker #1: Because the court is acknowledging what we've been saying all along, which is that yeah, if the nation's leading authority has approved a label, and has ruled on the question, of safety of a product, then a manufacturer that's done everything as Monsanto has done to provide information, updates, and to keep that label current, they can't be sued for failure to warn.

Speaker #2: At the time. And we think it makes all the sense in the world, given the competitive state of that business, to have this sort of semi-independent entity that can really move fast and take the actions that are required to be competitive in that space.

Speaker #2: So, I don't think there's anything else to say on that for the moment. Regarding the SCOTUS ruling and what it means for glyphosate, I mean, it certainly is a very important step.

Speaker #1: That just doesn't make any sense. So I think that's a really important step for limiting litigation in the future. That being said, I think in order to really resolve this, we need to get the class done.

Speaker #2: Because what we've been saying all along is that, yeah, if the nation's leading authority has approved a label and has ruled on the question of a product's safety, then a manufacturer that's done everything—as Monsanto has done—to provide information, updates, and to keep that label current, they can't be sued for failure to warn.

Bill Anderson: That being said, I think in order to really resolve this, we need to get the class done and make sure that there's clarity for all involved, and so that's why we're pursuing that. I think, our balance sheet, we want to strengthen that. We know we need to invest, for example, in the Pharmaceuticals field.

Speaker #1: And make sure that there's clarity for all involved. And so that's why we're pursuing that. And I think our balance sheet, we want to strengthen that.

Speaker #1: We also know we need to invest. For example, in the pharmaceutical field, this is pharmaceuticals is an area where you have a medicine for 8, 10, 12 years, and then you lose patent protection.

William Anderson: Pharmaceuticals is an area where you have a medicine for eight, 10, 12 years, and then you lose patent protection, and then you basically have to reinvent yourself every decade. There needs to be investment for that. Yeah, we want to both strengthen our balance sheet and increase our future investment, especially in the pharma division, and we're working on that.

Bill Anderson: Pharmaceuticals is an area where you have a medicine for eight, 10, 12 years, and then you lose patent protection, and then you basically have to reinvent yourself every decade. There needs to be investment for that. Yeah, we want to both strengthen our balance sheet and increase our future investment, especially in the pharma division, and we're working on that.

Speaker #2: That just doesn't make any sense. So, I think that's a really important step for limiting litigation in the future. That being said, I think in order to really resolve this, we need to get the class done.

Speaker #1: And then you basically have to reinvent yourself every decade. And so there needs to be investment for that. So yeah, we want to both strengthen our balance sheet and increase our future investment, especially in the pharma division.

Speaker #1: And we're working on that. OK. And the next question comes from Bert Frondhoff. Handelsblatt followed then by Ayisha Sharma from Endpoint News. Bert, over to you.

Speaker #2: And make sure that there's clarity for all involved. And so that's why we're pursuing that. And I think our balance sheet—we want to strengthen that.

Michael Preuss: Okay, the next question comes from Bert Frönter of Handelsblatt, followed then by Ayisha Sharma from Endpoints News. Bert, over to you.

Speaker #4: Yeah, yes, good morning. Judith and Bill, can you hear me? OK, yeah, I have the same question about the future of glyphosate and Ruvion.

Bert Frönter: Yeah. Yes, good morning, Judith and Bill. Can you hear me?

Bert Fröndhoff: Yeah. Yes, good morning, Judith and Bill. Can you hear me?

Speaker #2: We also know we need to invest, for example, in the pharmaceutical field. Pharmaceuticals is an area where you have a medicine for 8, 10, 12 years.

Michael Preuss: Yes, we can hear you.

Bert Frönter: Okay. I have the same question about the future of glyphosate and Ruveon. Related to that, what is the profit margin on glyphosate? Could you give us a number compared to the gross margin of Crop Science in total?

Bert Fröndhoff: Okay. I have the same question about the future of glyphosate and Ruveon. Related to that, what is the profit margin on glyphosate? Could you give us a number compared to the gross margin of Crop Science in total?

Speaker #4: But related to that, what is the profit margin on glyphosate? Could you give us a number compared to the gross margin of crop science in total?

Speaker #2: And then you lose patent protection. And then you basically have to reinvent yourself every decade. And so, there needs to be investment for that.

Speaker #2: So, yes, we want to both strengthen our balance sheet and increase our future investment, especially in the pharma division. And we're working on that.

Speaker #1: Yeah, Bert, we don't normally describe profit margins on individual products. But we've said many times before that the profit margin on glyphosate is it's very low.

William Anderson: Yeah, Bert, we don't normally describe profit margins on individual products. We've said many times before that the profit margin on glyphosate is very low. I think sometimes we said it's approaching zero. It depends a little bit on what's going on in the world and what the price of the generic glyphosate is doing. Yeah, it's definitely one of the lowest profit products in our portfolio.

Bill Anderson: Yeah, Bert, we don't normally describe profit margins on individual products. We've said many times before that the profit margin on glyphosate is very low. I think sometimes we said it's approaching zero. It depends a little bit on what's going on in the world and what the price of the generic glyphosate is doing. Yeah, it's definitely one of the lowest profit products in our portfolio.

Speaker #1: OK. And the next question comes from Bert Freunter of Handelsblatt, followed by Aisha Sharma from Endpoint News. Bert, over to you.

Speaker #1: I think it's sometimes we said it's approaching zero. It depends a little bit on what's going on in the world and what the price of the generic glyphosate is doing.

Speaker #3: Yeah, yes. Good morning, Judith and Bill. Can you hear me?

Speaker #2: Yes, we can hear you.

Speaker #1: But yeah, it's definitely one of the lowest profit products in our portfolio. Thanks, Bert. Next question comes from Ayisha Sharma from Endpoint News. Followed then by Florian Müller, Financial Times.

Speaker #3: OK, I have the same question about the future of glyphosate and Ruvion. But related to that, what is the profit margin on glyphosate? Could you give us a number compared to the gross margin of Crop Science in total?

Bert Frönter: Okay, thank you.

Bert Fröndhoff: Okay, thank you.

Michael Preuss: Thanks, Bert. Next question comes from Ayisha Sharma from Endpoints News, followed then by Florian Müller of Financial Times. Ayisha, you're next.

Speaker #2: Yeah. Bert, we don't normally describe profit margins on individual products. But we've said many times before that the profit margin on glyphosate is—it's very low.

Speaker #1: Ayisha. You're next.

Speaker #3: Good morning, and thank you for taking my questions. First, just on Germany's health spending plan that was recently passed. How do you expect that to kind of affect drug prices on the continent?

Ayisha Sharma: Good morning, and thank you for taking my questions. First, just on Germany's health spending plan that was recently passed. How do you expect that to affect drug prices on the continent, and especially with regards to MFN in the US? What sort of broader ripple effect you expect that to have on the industry. Secondly, there's been an uptick in pharmaceutical companies making deals with sort of Chinese biotech and licensing innovation from China. I was just wondering, does Bayer also have an interest in that area? Is that an area where it's looking to expand? Thank you.

Speaker #2: I think, as we've sometimes said, it's approaching zero. It depends a little bit on what's going on in the world and what the price of generic glyphosate is doing.

Speaker #3: And especially with regards to MSN in the US. What sort of broader ripple effect do you expect that to have on the industry? And secondly, there's been an uptick in pharmaceutical companies making deals with sort of Chinese biotech and licensing innovation from China.

Speaker #2: But yeah, it's definitely one of the lowest-profit products in our portfolio.

Speaker #3: OK. Thank you.

Speaker #2: Thanks, Bert. Next question comes from Aisha Sharma from Endpoint News, followed then by Florian Müller, Financial Times. Aisha, you're next.

Speaker #3: I was just wondering, does Bayer also have an interest in that area? Is that an area where it's looking to expand? Thank you.

Speaker #1: Good morning, and thank you for taking my questions. First, just on Germany's health spending that was recently passed—how do you expect that to affect drug prices on the continent, especially with regards to MSN in the US?

Speaker #1: Yeah, hi Ayisha. Well, yeah, we were disappointed at the outcome of the recent discussions, in Germany, about reforms and so-called reforms in health care increasing the discounts and mandatory rebates from pharmaceutical companies as I mentioned before.

William Anderson: Hi, Ayisha. Well, we were disappointed at the outcome of the recent discussions in Germany about so-called reforms in healthcare. Increasing the discounts and mandatory rebates from pharmaceutical companies, as I mentioned before, this really doesn't make any sense, especially for a country that aspires to be a leader in the world in Pharmaceuticals. We're really urging policymakers to reconsider that because, right now, I think about 80% of the medicines that are used in Germany, consumed in Germany, are produced in Germany, which is a really good position for the country to be in. Kind of using the pharmaceutical industry as a way to balance the healthcare budget, that's really not viable in Well, I was going to say, it's not viable long-term, it's not even viable short-term. We would strongly urge the government to reconsider that.

Bill Anderson: Hi, Ayisha. Well, we were disappointed at the outcome of the recent discussions in Germany about so-called reforms in healthcare. Increasing the discounts and mandatory rebates from pharmaceutical companies, as I mentioned before, this really doesn't make any sense, especially for a country that aspires to be a leader in the world in Pharmaceuticals. We're really urging policymakers to reconsider that because, right now, I think about 80% of the medicines that are used in Germany, consumed in Germany, are produced in Germany, which is a really good position for the country to be in.

Speaker #1: What sort of broader ripple effect do you expect that to have on the industry? And secondly, there's been an uptick in pharmaceutical companies making deals with Chinese biotech and licensing innovation from China.

Speaker #1: This really doesn't make any sense. Especially for a country that aspires to be a leader in the world in pharmaceuticals. And so yeah, we're really urging policymakers to reconsider that.

Speaker #1: I was just wondering, does Bayer also have an interest in that area? Is that an area where it's looking to expand? Thank you.

Speaker #2: Yeah. Hi, Aisha. Well, yeah, we were disappointed at the outcome of the recent discussions in Germany about reforms—so-called reforms—in health care, increasing the discounts and mandatory rebates from pharmaceutical companies, as I mentioned before.

Speaker #1: Because yeah, right now, I think about 80% of the medicines that are used in Germany, consumed in Germany, are produced in Germany, which is a really good position for the country to be in.

Speaker #1: But yeah, kind of using the pharmaceutical industry as a way to balance the health care budget that's not that's really not viable in well, I was going to say it's not viable long term.

Bill Anderson: Kind of using the pharmaceutical industry as a way to balance the healthcare budget, that's really not viable in Well, I was going to say, it's not viable long-term, it's not even viable short-term. We would strongly urge the government to reconsider that.

Speaker #2: This really doesn't make any sense, especially for a country that aspires to be a leader in the world in pharmaceuticals. And so, yeah, we're really urging policymakers to reconsider that.

Speaker #1: It's not even viable short term. So we yeah, we would strongly urge the government to reconsider that. Regarding Chinese innovation, there's a lot of great innovation coming out of China.

Speaker #2: Because, yes, right now, I think about 80% of the medicines that are used in Germany—consumed in Germany—are produced in Germany, which is a really good position for the country to be in.

William Anderson: Regarding Chinese innovation, there's a lot of great innovation coming out of China. We're certainly open to deals. We've done partnerships with Chinese biotech companies and startups, and that could be an increased source of innovation. I think worldwide, there's a quest for innovative new molecules and kind of new approaches to finding targets and attacking targets in the human disease-related targets. We're very open to that. I think we also have a lot of partnerships with companies in Europe and the US, it's really a global affair.

Bill Anderson: Regarding Chinese innovation, there's a lot of great innovation coming out of China. We're certainly open to deals. We've done partnerships with Chinese biotech companies and startups, and that could be an increased source of innovation. I think worldwide, there's a quest for innovative new molecules and kind of new approaches to finding targets and attacking targets in the human disease-related targets. We're very open to that. I think we also have a lot of partnerships with companies in Europe and the US, it's really a global affair.

Speaker #1: And we're certainly open to deals. We've done partnerships with Chinese biotech companies and startups. And that could be an increased source of innovation. I think the worldwide, there's a quest for innovative new molecules and kind of new approaches to finding targets.

Speaker #2: But yeah, kind of using the pharmaceutical industry as a way to balance the health care budget—that's not, that's really not viable in, well, I was going to say it's not viable long term.

Speaker #2: It's not even viable short term. So, yeah, we would strongly urge the government to reconsider that. Regarding Chinese innovation, there's a lot of great innovation coming out of China.

Speaker #1: And attacking targets in the human well, yeah, disease-related targets. So we're very open to that. I think we also have a lot of partnerships with companies in Europe and the US.

Speaker #2: And we're certainly open to deals. We've done partnerships with Chinese biotech companies and startups, and that could be an increased source of innovation. I think, worldwide, there's a quest for innovative new molecules and new approaches to finding targets.

Speaker #1: So it's really a global affair.

Speaker #3: Thank you.

Ayisha Sharma: Thank you.

Speaker #1: Thank you. The next question comes from Florian Müller, Financial Times. Followed then by Jonas Jansen, Frankfurter Allgemeine Zeitung. Florian, over to you.

Michael Preuss: Thank you. The next question comes from Florian Müller, "Financial Times," followed by Jonas Jansen, "Frankfurter Allgemeine Zeitung." Florian, over to you.

Speaker #2: And attacking targets in humans—well, yes, disease-related targets. So we're very open to that. I think we also have a lot of partnerships with companies in Europe and the US.

Florian Müller: I have a question regarding the and your likely similar deals. Do you think that this deal in particular was like a singular situation, or could that be something along those lines in the future as well? Do you think you still have some assets which you could use for that? Do you think that it could also be an alternative to spin-offs just in general? Thank you.

Speaker #4: So I have a question regarding the likelihood of similar deals do you think that in particular, what's one particular situation or could that be doing something along those lines in the future as well?

Speaker #2: So, it's really a global affair.

Speaker #1: Thank you.

Speaker #2: Thank you. The next question comes from Florian Müller, Financial Times, followed then by Jonas Jansen, Frankfurter Allgemeine Zeitung. Florian, over to you.

Speaker #4: Do you think you still have some assets, which you could use for this? And do you think that it could also be an alternative to spin-offs just in general?

Speaker #3: So, I have a question on that, and you're likely similar—do you think that, in particular, what's one specific situation, or could you be doing something along those lines in the future as well?

Speaker #4: Thank you.

Speaker #1: Florian, we couldn't hear you very well. Were you talking about the Apollo deal? Got it. We just missed the beginning of your question. We heard the end.

William Anderson: Florian, we couldn't hear you very well. Were you talking about the Apollo deal?

Bill Anderson: Florian, we couldn't hear you very well. Were you talking about the Apollo deal?

Florian Müller: Yes.

William Anderson: Got it. We just missed the beginning of your question. We heard the end. Got it.

Bill Anderson: Got it. We just missed the beginning of your question. We heard the end. Got it.

Speaker #1: Got it. Judith, do you want to comment on that?

Florian Müller: It's okay.

William Anderson: Judith, do you want to comment on that?

Bill Anderson: Judith, do you want to comment on that?

Speaker #3: Yes, thank you, Florian. Indeed, this was the Apollo deal was the right transaction in the right time, if I may say so. We it is a $3 billion equity investment, which really it was already mentioned by one of your colleagues earlier, is helping us to deliver and so that is a very was a very good structure for us.

Judith Hartmann: Yes. Thank you, Florian. Indeed, the Apollo deal was the right transaction in the right time, if I may say so. It is a EUR 3 billion equity investment, which really, it was already mentioned by one of your colleagues earlier, is helping us to delever. That is a very good structure for us, with a very good partner for that matter. Yeah, it's part of the entire toolbox that we have to look at our balance sheet and the delevering. I didn't hear the first part of your question, but there isn't anything similar planned at this stage. Like I said, it's part of the full toolbox.

Speaker #3: Do you think you still have some assets which you could use for this? And do you think that it could also be an alternative to spin-offs, just in general?

Speaker #3: Thank you.

Speaker #2: Florian, we couldn't hear you very well. Were you talking about the Apollo deal?

Speaker #3: Yes.

Speaker #2: Got it. We just missed the beginning of your question and we heard the end. Got it.

Speaker #3: With a very good partner for that matter. And yeah, it's part of the entire toolbox that we have, to look at our balance sheet and the delivering.

Speaker #3: It's OK.

Speaker #2: Judith, do you want to comment on that?

Speaker #1: Yes. Thank you, Florian. Indeed, this was the Apollo deal was the right transaction in the right time, if I may say so. We it is a $3 billion equity investment, which really it was already mentioned by one of your colleagues earlier, is helping us to deliver and so that is a very was a very good structure for us.

Speaker #3: There isn't I didn't hear the first part of your question. But there isn't anything similar planned at this stage. But like I said, it's part of the full toolbox.

Speaker #4: Thank you.

Florian Müller: Thank you.

Speaker #1: Thank you. The next question comes from Jonas Jansen, Frankfurter Allgemeine Zeitung. Followed then by Adria Katalyut from Dow Jones News Wires. Jonas, you're next.

Michael Preuss: Thank you. The next question comes from Jonas Jansen, Frankfurter Allgemeine Zeitung, followed then by Adria Calatayud from Dow Jones Newswires. Jonas, you're next.

Speaker #1: With a very good partner, for that matter. And yeah, it's part of the entire toolbox that we have to look at—our balance sheet and the deleveraging.

Speaker #4: Hello and good morning. My question, just one clarification. Regarding the pharmaceutical discussions you mentioned, do you have a timeline when you need to when that needs to be resolved?

Jonas Jansen: Hello, good morning. Thank you for taking my question. Just one clarification regarding the pharmaceutical discussions you mentioned. Do you have a timeline when that needs to be resolved, or an expectation when that should be a bigger topic with the regulators? Is there anything coming up, what you could talk about? The second question, just a short one. Every other year when it's getting warm and low water on the Rhine, are you impacted by that as Bayer?

Speaker #1: I didn’t hear the first part of your question, but there isn’t anything similar planned at this stage. But, like I said, it’s part of the full toolbox.

Speaker #4: Or an expectation when that should be yeah, a bigger topic with the regulators? Is there anything coming up what you could talk about? And the second question, just a short one.

Speaker #3: Thank you.

Speaker #2: Thank you. The next question comes from Jonas Jansen, Frankfurter Allgemeine Zeitung, followed by Adria Katalyut from Dow Jones Newswires. Jonas, you're next.

Speaker #4: Every other year, when it's getting warm and low water on the Rhine, are you impacted by that as Bayer?

Speaker #3: Hello and good morning. My question, just one clarification. Regarding the pharmaceutical discussions you mentioned, do you have a timeline when you need to when that needs to be resolved?

Speaker #1: Jonas, could you just say your first question, we just missed the first few words. And.

William Anderson: Jonas, could you just say your first question? We just missed the first few words.

Bill Anderson: Jonas, could you just say your first question? We just missed the first few words.

Speaker #3: Or is it an expectation when that should be, yeah, a bigger topic with the regulators? Is there anything coming up that you could talk about?

Speaker #4: Well, just regarding about the pharma discussions with regulators, you mentioned in the first answer do you have a timeline when that needs to be resolved to work properly or an expectation when you can get into the discussions with the regulators?

Jonas Jansen: Oh, just regarding the pharma discussions with regulators you mentioned in the first answer. Do you have a timeline when that needs to be resolved to work properly, or an expectation when you can get into the discussions with the regulators? Is there anything coming up or anything planned, or is this just an ongoing discussion all the time?

Speaker #3: And the second question, just a short one. Every other year, when it’s getting warm and there’s low water on the Rhine, are you impacted by that as Bayer?

Speaker #4: Is there anything coming up or anything planned? Or is there just an ongoing discussion all the time?

Speaker #2: Jonas, could you just say your first question? We just missed the first few words. And...

Speaker #1: And do you mean the pricing authorities?

William Anderson: Do you mean the pricing authorities?

Bill Anderson: Do you mean the pricing authorities?

Speaker #4: Yes.

Jonas Jansen: Yes.

William Anderson: Okay. Yeah. The policymaking process is complex. What we heard from the government in Germany was that they remain very committed to the long-term funding of Pharmaceuticals and paying for innovation. There's a need to balance the budget this year, but things will get better in future years. It's kind of an open topic, and I think there's ongoing conversations happening about that between the representatives of the pharmaceutical industry and the government as to what that will actually look like and how we can ensure that we do have good conditions for innovation. I think more to come on that. The question about the Rhine effect, we see it. It's obviously affecting shipping on the Rhine. I think we've managed to mitigate it thus far. There is some more rain happening in Central Europe right now.

Speaker #1: OK. OK, yeah. Yeah, so the policymaking process is complex. What we heard from the government in Germany was that they remain very committed to the long-term kind of funding of pharmaceuticals and paying for innovation.

Bill Anderson: Okay. Yeah. The policymaking process is complex. What we heard from the government in Germany was that they remain very committed to the long-term funding of Pharmaceuticals and paying for innovation. There's a need to balance the budget this year, but things will get better in future years. It's kind of an open topic, and I think there's ongoing conversations happening about that between the representatives of the pharmaceutical industry and the government as to what that will actually look like and how we can ensure that we do have good conditions for innovation. I think more to come on that.

Speaker #3: Oh, just regarding the pharma discussions with regulators you mentioned in the first answer, do you have a timeline for when that needs to be resolved in order to work properly, or an expectation for when you can get into the discussions with the regulators?

Speaker #3: Is there anything coming up, or anything planned? Or is this just an ongoing discussion all the time?

Speaker #2: And do you mean the pricing authorities? OK. OK. Yeah. Yeah, so the policymaking process is complex. What we heard from the government in Germany was that they remain very committed to the long-term kind of funding of pharmaceuticals and paying for innovation.

Speaker #1: But there's a need to balance the budget this year and but things will get better in future years. And so it's kind of an open topic.

Speaker #1: And I think there's yeah, there's ongoing conversations happening about that with between the representatives of the pharmaceutical industry and the government as to what that will actually look like and how we can ensure that we do have good conditions for innovation.

Speaker #1: So I think more to come on that. And the question about the Rhine effect I mean, we see it. It's obviously affecting shipping on the Rhine.

Speaker #2: But there's a need to balance the budget this year. But I think it will get better in future years. And so it's kind of an open topic.

Bill Anderson: The question about the Rhine effect, we see it. It's obviously affecting shipping on the Rhine. I think we've managed to mitigate it thus far. There is some more rain happening in Central Europe right now. There were storms that came through last night. We're going to have to see whether we have a recovery in shipping, but so far there's not been an impact on Bayer.

Speaker #2: And I think there's, yeah, there's ongoing conversations happening about that between representatives of the pharmaceutical industry and the government as to what that will actually look like, and how we can ensure that we do have good conditions for innovation.

Speaker #1: I think we've managed to mitigate it thus far. There is some more rain happening in Central Europe right now. There were storms that came through last night.

William Anderson: There were storms that came through last night. We're going to have to see whether we have a recovery in shipping, but so far there's not been an impact on Bayer.

Speaker #1: And we're going to have to see. Whether we have a recovery in shipping. But so far, that's not there's not been an impact on Bayer.

Speaker #2: So, I think more to come on that. And the question about the Rhine effect—I mean, we see it. It's obviously affecting shipping on the Rhine.

Speaker #4: Thank you very much.

Jonas Jansen: Thank you, William.

Speaker #1: OK, and the next question comes from Adria Katalyut, so over to you.

Michael Preuss: Okay, the next question comes from Adria Calatayud, over to you.

Speaker #2: I think we've managed to mitigate it thus far. There is some more rain happening in Central Europe right now. There were storms that came through last night.

Speaker #5: Hi, thanks for taking my question. Can you hear me?

Adria Calatayud: Hi, thanks for taking my question. Can you hear me?

Adrià Calatayud: Hi, thanks for taking my question. Can you hear me?

Speaker #1: I can can hear you.

Michael Preuss: Can hear you.

Speaker #5: Great, thank you. I wanted to follow up on the topic of the group structure. You've said that you still have important work to do.

Adria Calatayud: Great. Thank you. I wanted to follow up on the topic of the group structure. You've said that you still have important work to do. Does that mean that you will have to wait until you are fully satisfied with what you've done in terms of these five priorities that you've aligned, or could you look at this before that?

Adrià Calatayud: Great. Thank you. I wanted to follow up on the topic of the group structure. You've said that you still have important work to do. Does that mean that you will have to wait until you are fully satisfied with what you've done in terms of these five priorities that you've aligned, or could you look at this before that?

Speaker #2: And we're going to have to see whether we have a recovery in shipping. But so far, there's not been an impact on Bayer.

Speaker #5: Does that mean that you will have to wait until you are fully satisfied with what you've done in terms of these five priorities that you've aligned?

Speaker #3: Thank you very much.

Speaker #2: OK. And the next question comes from Adria Katalyut, so over to you.

Speaker #5: Or could you look at this before that?

Speaker #1: Yeah, thanks, Adria. I mean, what it comes down to is focus. And we have 87,000 people that are focused on delivering on the mission and really nailing those five key priority areas.

William Anderson: Yeah. Thanks, Adria. What it comes down to is focus, and we have 87,000 people that are focused on delivering on the mission and really nailing those five key priority areas. That doesn't mean that the management board can't have our head up and considering opportunities and options. What I would say is, for now, we think the best plan is to continue to drive hard on those five topics because they will make us better in any scenario, in any structural scenario, whether we're staying together, whether we're selling something or divesting something. In any of those cases, basically having the litigation overhang significantly contained, having a stronger balance sheet, basically delivering better financial performance in every division, in every business, having a nimbler, faster organization, that's going to serve us in season and out.

Bill Anderson: Yeah. Thanks, Adria. What it comes down to is focus, and we have 87,000 people that are focused on delivering on the mission and really nailing those five key priority areas. That doesn't mean that the management board can't have our head up and considering opportunities and options. What I would say is, for now, we think the best plan is to continue to drive hard on those five topics because they will make us better in any scenario, in any structural scenario, whether we're staying together, whether we're selling something or divesting something.

Speaker #3: Hi. Thanks for taking my question. Can you hear me?

Speaker #2: Can hear you.

Speaker #3: Great, thank you. I wanted to follow up on the topic of the group structure. You've said that you still have important work to do.

Speaker #3: Does that mean that you will have to wait until you are fully satisfied with what you've done in terms of these five priorities that you've outlined?

Speaker #1: But that doesn't mean that the management board can't have our head up and kind of considering opportunities and options. And what I would say is, for now, we think the best plan is to continue to drive hard on those five topics because they will make us better in any scenario, in any structural scenario, whether we're staying together, whether we're selling something or divesting something.

Speaker #3: Or, could you look at this before that?

Speaker #2: Yeah. Thanks, Adria. I mean, what it comes down to is focus. And we have 87,000 people that are focused on delivering on the mission and really nailing those five key priority areas.

Bill Anderson: In any of those cases, basically having the litigation overhang significantly contained, having a stronger balance sheet, basically delivering better financial performance in every division, in every business, having a nimbler, faster organization, that's going to serve us in season and out. Our assessment today is that it's not time to take our eye off of that. We need to stay really focused on driving those, and we'll keep our minds open and our heads up.

Speaker #1: In any of those cases, basically having the litigation overhang significantly contained, having a stronger balance sheet, basically delivering better financial performance in every division, in every business, having a nimbler, faster organization, that's going to serve us in season and out.

Speaker #2: But that doesn't mean that the management board can't have our head up and kind of consider opportunities and options. And what I say is, for now, we think the best plan is to continue to drive hard on those five topics, because they will make us better in any scenario, in any structural scenario, whether we're staying together, whether we're selling something, or investing in something.

Speaker #1: And so our assessment today is that it's not time to take our eye off of that. We need to stay really focused on driving those.

William Anderson: Our assessment today is that it's not time to take our eye off of that. We need to stay really focused on driving those, and we'll keep our minds open and our heads up.

Speaker #2: In any of those cases, basically having the litigation overhang significantly contained, having a stronger balance sheet, basically delivering better financial performance in every division, in every business, having a nimbler, faster organization—that's going to serve us in season and out.

Speaker #1: And we'll keep our minds open and our heads up.

Speaker #2: All right. Thank you, Judith. Thank you, Bill. That's all we had on the docket right now from the questions. Thank you very much for your questions.

Michael Preuss: All right. Thank you, Judith. Thank you, Bill. That's all we had on the docket right now from the questions. Thank you very much for your questions. Thank you very much for your interest. This concludes our call, and we wish all of you a great day. Thank you.

Speaker #2: And so, our assessment today is that it's not time to take our eye off of that. We need to stay really focused on driving those.

Speaker #2: And we'll keep our minds open and our heads up.

Speaker #3: All right. Thank you, Judith. Thank you, Bill. That's all we had on the docket right now from the questions. Thank you very much for your questions.

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Q2 2026 Bayer AG Earnings Call - Media Conference

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