13.2 CropScience

Key Data – CropScience

 

 

4th Quarter 2014

4th Quarter 2015

Change

 

Full Year 2014

Full Year 2015

Change

 

 

€ million

€ million

%

Fx & p adj. %

 

€ million

€ million

%

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see Chapter 14.2 “Calculation of EBIT(DA) Before Special Items.”

2

For definition see Chapter 14.5 “Liquidity and Capital Expenditures of the Bayer Group.”

Sales

 

2,195

2,439

+11.1

+5.3

 

9,494

10,367

+9.2

+1.7

Change in sales

 

 

 

 

 

 

 

 

 

 

Volume

 

+7.6%

+5.7%

 

 

 

+9.1%

+1.3%

 

 

Price

 

+0.7%

−0.4%

 

 

 

+2.1%

+0.4%

 

 

Currency

 

+3.7%

+5.1%

 

 

 

−3.7%

+6.9%

 

 

Portfolio

 

+0.5%

+0.7%

 

 

 

+0.2%

+0.6%

 

 

Sales

 

 

 

 

 

 

 

 

 

 

Crop Protection / Seeds

 

2,028

2,230

+10.0

+4.8

 

8,816

9,548

+8.3

+1.5

Environmental Science

 

167

209

+25.1

+11.4

 

678

819

+20.8

+4.1

Sales by region

 

 

 

 

 

 

 

 

 

 

Europe

 

377

386

+2.4

+2.7

 

2,957

3,123

+5.6

+8.2

North America

 

329

464

+41.0

+24.0

 

2,334

2,689

+15.2

−1.6

Asia / Pacific

 

356

365

+2.5

−2.5

 

1,374

1,531

+11.4

+1.3

Latin America / Africa / Middle East

 

1,133

1,224

+8.0

+4.4

 

2,829

3,024

+6.9

−0.5

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

191

478

+150.3

 

 

1,806

2,103

+16.4

 

Special items

 

(32)

301

 

 

 

(32)

222

 

 

EBIT before special items1

 

223

177

−20.6

 

 

1,838

1,881

+2.3

 

EBITDA1

 

367

629

+71.4

 

 

2,358

2,638

+11.9

 

Special items

 

(2)

295

 

 

 

(2)

222

 

 

EBITDA before special items1

 

369

334

−9.5

 

 

2,360

2,416

+2.4

 

EBITDA margin before special items1

 

16.8%

13.7%

 

 

 

24.9%

23.3%

 

 

Gross cash flow2

 

382

493

+29.1

 

 

1,835

1,941

+5.8

 

Net cash flow2

 

103

165

+60.2

 

 

950

761

−19.9

 

CropScience raised sales by 1.7% (Fx & portfolio adj.) in 2015, to €10,367 million (reported: +9.2%). We registered growth at both Crop Protection / Seeds and Environmental Science. Fungicides played a major part in this sales increase. In regional terms, business in Europe saw particularly encouraging development.

CropScience Quarterly Sales

CropScience Quarterly Sales (bar chart)CropScience Quarterly Sales (bar chart)

Sales in Crop Protection / Seeds increased by 1.5% (Fx & portfolio adj.), to €9,548 million. Crop Protection posted gratifying sales gains at Fungicides and Herbicides but a distinct decline at Insecticides and SeedGrowth. In the Seeds business, sales of soybean and canola seed developed particularly well.

Business in Environmental Science advanced by 4.1% (Fx & portfolio adj.) to €819 million. There was a sharp increase in business with products for professional users, while the consumer business came in at the prior-year level.

Sales by Business Unit

 

 

4th Quarter 2014

4th Quarter 2015

Change

 

Full Year 2014

Full Year 2015

Change

 

 

€ million

€ million

%

Fx adj. %

 

€ million

€ million

%

Fx adj. %

Fx & p adj. = currency- and portfolio-adjusted

Herbicides

 

517

650

+25.7

+19.6

 

2,549

2,830

+11.0

+5.4

Fungicides

 

568

677

+19.2

+11.3

 

2,490

2,911

+16.9

+9.5

Insecticides

 

482

430

−10.8

−16.6

 

1,695

1,596

−5.8

−14.0

SeedGrowth

 

254

252

−0.8

−7.9

 

978

934

−4.5

−10.6

Crop Protection

 

1,821

2,009

+10.3

+3.6

 

7,712

8,271

+7.2

+0.4

Seeds

 

207

221

+6.8

+15.4

 

1,104

1,277

+15.7

+8.8

Crop Protection / Seeds

 

2,028

2,230

+10.0

+4.8

 

8,816

9,548

+8.3

+1.5

Environmental Science

 

167

209

+25.1

+11.4

 

678

819

+20.8

+4.1

The sales development of CropScience varied by region.

Sales in Europe rose by 8.2% (Fx adj.) to €3,123 million, driven by the positive development at Crop Protection / Seeds. Sales at Herbicides grew by a double-digit percentage, and business at Fungicides also expanded significantly due to low inventories at the beginning of the year. In addition, we achieved encouraging gains in our canola and vegetable seed businesses. Environmental Science performed positively due to strong business with products for professional users.

Sales in the North America region declined by 1.6% (Fx adj.) to €2,689 million. This decline was chiefly attributable to the negative development at Crop Protection, particularly at SeedGrowth, which in turn resulted from high inventories of already treated seed in the market. Business was also down for cotton seed, fungicides and herbicides. On the other hand, business with canola seed expanded briskly compared with the prior year. Our insecticides business also developed successfully. There was a very significant increase in sales at Environmental Science, especially due to the acquisition of parts of the DuPont land management business.

Sales in the Asia / Pacific region came in slightly above the prior year level at €1,531 million (Fx adj. +1.3%). Contributing to this increase in particular were our SeedGrowth and Herbicides businesses. Sales of cotton and vegetable seed improved by double-digit percentages. Sales at Insecticides declined slightly against the previous year. Sales at Environmental Science were down year on year.

Despite a weakened market environment, particularly in Brazil, sales in Latin America / Africa / Middle East were level year on year at €3,024 million (Fx adj. −0.5%). Sales at Insecticides receded sharply as a result of declining business in Latin America that was mainly attributable to lower infestation pressure in Brazil. Business was also down at SeedGrowth, an effect that could not be fully offset by double-digit percentage growth in sales at Fungicides and a very gratifying performance of the Seeds business, especially for soybean and vegetable seed. Sales at Environmental Science also moved ahead by a double-digit percentage.

CropScience
Quarterly EBIT

CropScience – Quarterly EBIT (bar chart)CropScience – Quarterly EBIT (bar chart)

CropScience
Quarterly EBITDA Before Special Items

CropScience – Quarterly EBITDA Before Special Items (bar chart)CropScience – Quarterly EBITDA Before Special Items (bar chart)

EBIT Income after income taxes, plus income taxes, plus financial result; EBIT is not defined in the International Financial Reporting Standards. of CropScience climbed by 16.4% in 2015, rising from €1,806 million to €2,103 million. There were net special gains of €222 million (2014: net special charges of €32 million), comprising mainly damage and license payments in connection with the infringement of Bayer’s rights to the LibertyLink weed control system by Dow AgroSciences (DAS). EBIT before special items EBIT plus special charges, minus special gains; this indicator is not defined in the International Financial Reporting Standards. increased by 2.3% to €1,881 million. EBITDA before special items EBITDA plus special charges, minus special gains; this indicator is not defined in the International Financial Reporting Standards. improved by 2.4% to €2,416 million. In addition to positive earnings effects due to the satisfactory business development, including higher volumes and slightly improved selling prices, there was a very positive currency effect of about €220 million. By contrast, there was an increase in the cost of goods sold and in research and development expenses.