Meet management 2013-10-08_investor_handout_web_slideshare

Meet Management 2013
London, October 8, 2013
Investor Handout

Disclaimer
This presentation may contain forward-looking statements based on current
assumptions and forecasts made by Bayer Group or subgroup management.
Various known and unknown risks, uncertainties and other factors could lead to
material differences between the actual future results, financial situation,
development or performance of the company and the estimates given here.
These factors include those discussed in Bayer’s public reports which are
available on the Bayer website at www.bayer.com. The company assumes no
liability whatsoever to update these forward-looking statements or to conform
them to future events or developments.

• Bayer Investor Presentation • Meet Management • October 2013Page 1
Our Mission –
Innovation and Customer Value
 Bayer is an innovation company
 With a strong “innovation portfolio”
 Addressing new growth areas
 Capable of identifying and using
breakthrough innovations
 Bayer is innovative in many ways:
Products, technologies, processes,
business models, strategies
 Bayer products improve
the quality of people’s lives
 Bayer has an excellent understanding
of human, animal and plant health,
as well as of high-quality materials
 Respect for people and nature
is an essential part of our values
Science / Innovation Better Life
Science For A Better Life

Our Business Portfolio –
Leading in Its Markets
Break-down excluding reconciliation
Sales 2012: €39.7bn
CropScience
Chemical crop protection & biologicals,
global #2, seeds & traits
€8.4bn
MaterialScience
Polyurethanes and polycarbonates,
global #1/2
€11.5bn
HealthCare
Pharmaceuticals €10.8bn,
leading positions in core indications
Consumer Health €7.8bn,
OTC pharmaceuticals, blood glucose
meters, contrast media and veterinary
medicines, global #2-5
€18.6bn
22%
30%
48%

Life-Sciences Generate Vast Majority of
Group Sales and Earnings
22%
30%
45%
85% 15%
Sales 2012 Adj. EBITDA 2012*
Human
Health
3%
Breakdown excluding Reconciliation
Material
Science
Animal
Health
Life-
Sciences
Material
Science
*EBITDA before special items
Plant Health

• Bayer Investor Presentation • Meet Management • October 2013
Business Highlights

1H 2013 – Business Highlights
 Strong growth momentum at Life-Sciences
 Full-year 2013 new pharma product sales target
raised to ~€1.4bn
 Weak performance at MaterialScience in a challenging
environment
 Full-year 2013 outlook maintained

EBIT
in € million
+29%
3,058
2,371
Sales
in € million
% currency & portfolio adj.
+4%
20,62620,220
EBITDA
adjusted**
in € million
+1%
4,6484,612
Core EPS
in €
+4%
3.243.12
*Prior-year figures restated
**before special items
1H’131H’12* 1H’131H’12* 1H’131H’12* 1H’131H’12*
1H 2013 – Performance Driven by
Life-Science Businesses

FY 2013 Financial Outlook Maintained Even
Though Increasingly Ambitious After Q2 Results
Page 7
20121 2013E
Sales €39.7bn
+4-5% to
~€40-41bn*
adj. EBITDA €8.3bn
mid-single-digit %
increase
Core EPS €5.30
high-single-digit %
increase
Sales ∆ Fx and portfolio adjusted, EBITDA before special items
*Assuming average Fx rates of H1 2013
Outlook depends on specific planning assumptions as detailed in the Annual Report
1 2012 figures restated

Strategic Priorities
Page 8 • Bayer Investor Presentation • Meet Management • October 2013
Pharma: Successfully commercialize new products, invest in life-
cycle management and mid-early pipeline
1.
2.
3.
4.
Consumer Health: Aspire to become #1 OTC company
CropScience: Above market growth at benchmark profitability;
expand production capacities
MaterialScience: Improve returns

2012 CAGR 2015e
Pharma: Sales Growth
Acceleration Driven by
New Products

20
15
10
5
19.3%
15.4%
1.1%
Xarelto
0
Xarelto – Outperforming Competition,
Exceeding Expectations
 Best-in-class launch in Germany,
Brazil, Switzerland and Belgium
 Uptake significantly exceeding
expectations
 New sales target 2013: >€800m
(prev.: ~€600m)
 Broadest label of novel oral
anticoagulants with once-daily-
dosing advantage2
Sales market share in % (retail & hospital combined)
01/2012 07/2013
apixaban
dabigatran
1 Oral anticoagulant; 2 exception 15mg BID dosing for treatment
of acute DVT/PE or 2.5mg BID for ACS sec. prevention
Xarelto – Leading Novel OAC1 Globally

Pharma Launches in Full Swing
Commercial HighlightsCommercial Highlights
 Market leadership in Japan and Australia with ~50% market share
 Rapid adoption in switch and naïve patients in reimbursed markets
 Strong momentum continues; ~15,000 patients treated1
 Approval in EU for treatment of mCRC (08/13)
 First commercialized alpha-radiopharmaceutical product
 Positive early feedback from launch in the US (473 patient-ready
centers2), positive CHMP opinion for approval in EU
 Submitted for PAH and CTEPH
 Positive FDA AdCom recommendation, approved in Canada (09/13)
CTEPH: Chronic thromboembolic pulmonary hypertension;
PAH: Pulmonary arterial hypertension
1 As of September 2, 2013; 2 As September 20, 2013

New Launch Products Have a Business
Transforming Potential
Combined* Peak Sales Potential >€5.5bn
Rivaroxaban AfliberceptRegorafenib
Radium-223
dichloride
Riociguat
2011 2012 2012 2013 2013
*Combined peak sales potential for Xarelto, Stivarga, Eylea, Xofigo
and Riociguat assuming approvals and launches plannedPage 12
>€2bn ≥€1bn ≥€1bn ≥€1bn ≥€500m
Launch in first/main indication

Comprehensive Life-Cycle Management for
New Launch Products
 Two phase III trials in additional indications underway1
 Additional research to strengthen profile in SPAF2
Table shows major examples
 Strengthening of profile beyond wAMD
 Evaluate potential for additional cancers of the gastro-intestinal tract
 Phase III trial in 2nd-line liver cancer underway
 Expanding Xofigo’s position in castration-resistant prostate
cancer, i.e. combination with abiraterone, and to other cancers
 Realize the potential beyond PAH and CTEPH
 Evaluate the clinical profile in new disease areas like systemic
sclerosis
1 Coronary artery disease / peripheral artery disease; chronic heart
failure and coronary artery disease, 2 Atrial fibrillation with percutaneous
coronary intervention; nonvalvular atrial fibrillation and cardioversion

Phase III
Phase III
Phase III
Targeting to Progress Five New Pipeline
Assets into Phase III by 2015
2013 2014 2015
Finerenone
Phase IIb in worsening chronic heart failure and
phase II in diabetic nephropathy
Copansilib
Phase II in indolent or aggressive non-hodgkin's
lymphomas
sGC-
Stimulator
Phase IIb program in heart failure
sPRM Phase III in uterine fibroids
Phase IIIMolidustat
DIALOGUE phase IIb program in renal
anemia
Timeline reflects planned phase III initiation
PI3-Kinase Inhibitor
MR Antagonist
HIF-PH Inhibitor
S-PRAnt

Aspire to Become the Leading
OTC Company

OTC – Strategy for Growth
2012 2015e
OTC Sales Target 2015*
€3.5bn
>€4.0bn
*assuming €/$ of 1.29
Organic growth
>4% CAGR
Growth Strategy
 Maximize brand potential
 Global expansion of key brands
 Exploit our innovation pipeline
 Double proportion of new products‘ sales
until 2015
 Grow in emerging markets
 Increase commercial power
 Bolt-on acquisitions to strengthen
portfolio & regional set-up
Page 16

Strengthening HealthCare Through
Selected Acquisitions
Significant synergies expected from
leveraging Bayer’s existing
Women’s Healthcare business
Significant sales synergies expected
due to Bayer’s complementary
Consumer Care business
 US-based company providing the
leading non-surgical permanent
birth control method (Essure ®)
proven by >700,000 procedures
 Sales 2012: ~USD 140m*
 Transaction value: €780m
 Germany-based specialist in pharmacy-
only herbal medicines, bringing in a
leading herbal expertise
 Sales 2012: €61.3m
 Transaction value: €222m
Conceptus:
Permanent birth control
Steigerwald:
Herbal medicines
*USD reporting

2012 CAGR 2015e
CropScience: Targeting Above
Market Growth at Benchmark
Profitability

Translating R&D Effectively into New
Product Sales for CropScience
Page 19
0.02
0.3
0.7
1.1
~1.4
~1.9
2007 2009 2011 2012 2013e 2015e
+60%
Sales from new Crop Protection products
launched since 2006 in €bn
∆% y-o-y, () Fx adj.
 (+19%) - Superior ‘all-in-one’
cereal fungicide with yield-boosting
effect
 herbicide (+35%) -
Excellent weed control in corn and
cereals, also in case of glyphosate
resistance
 (+64%) - Broad-spectrum
insecticide with fast, long-lasting
action
 - New fungicide now
available in several key markets
1H 2013 Highlights

303
~520
~620
~660
600
2012 2013e 2014e 2015e 2016e
 Increasing demand for innovative and
sustainable agricultural solutions
 Construction of US production plant1
for herbicide glufosinate-ammonium
 Expanding seeds infrastructure for
soybean and wheat
 Expanding and modernizing R&D
facilities
 CAPEX expansion to €2.4bn
for 2013 - 2016
Stepping Up Investment Plans for Capacity
Expansion at CropScience
1About €380m investment,
start of production expected Q4 2015
Capital Expenditures (PPE only, in €m)

Bolt-on Acquisitions to Strengthen
CropScience Portfolio
Region Technology Product / Portf.
Biologics
 Hornbeck (04/11)
€30m
US Seeds, Breeding
Germplasm
Soybean
Seeds
 AgraQuest (07/12)
~€375m
> 30 countries Biologics Fungicides
Insecticides
 Raps GbR (10/11)
€26m
 Wehrtec,
Wehrmann (03/13)
€37m + milestones
Seeds
Germplasm
Soybean
 Abbott & Cobb (07/12)
~€43m
US Seeds Watermelon
Melon
 Prophyta (01/13)
€25m (provisional)
Germany Biologics Fungicides
Nematicides
Europe Seeds, Breeding Oilseed rape
Brazil

MaterialScience: Aspire to Earn
a Premium Over Cost of Capital

Selling Price Increases & Savings Not
Sufficient to Protect Earnings
 Market growth trends intact, key
products with mid-single digit volume
growth
 High raw material prices and
significant capacity additions led to
global overcapacities and margin
pressure
 Going forward demand & supply
balance expected to improve
 Anticipated margin improvement
supported by fresh savings from new
efficiency initiative
2010 2011 2012
Sales Adj. EBITDARaw Mat. & Energy Costs CFROI
In € bn
10.2
10.8
11.5
5.4
6.2
6.6
1.4 1.2 1.3
6% 6%
8%

Profitability Improvement Through New
Efficiency Initiative Until 2015
 New efficiency initiative improves cost structure and increases adjusted EBITDA
margin by 150bp
 Initiative comprises more than 100 measures across the entire value chain
Examples
Business Units  Consolidation of system houses
 Pricing excellence programs
Organization  Optimization of regional structures (e.g. Canada & US)
Production  Further initiatives to improve asset productivity (e.g. maintenance
schedules, engineering setup)
Supply Chain  Optimization of logistics services
Selling &
Administration
 Further reduce costs by leveraging established global ERP
platform and standardized processes
ERP: enterprise resource planning

Optimistic About Future Developments
Excellent new product launch execution
1H 2013: Business performance driven by Life-Sciences
FY 2013 Outlook Maintained
Additional investments in R&D and production capacities

Appendix

HealthCare –
Building Growth Momentum, Improving Margins
¹ Xarelto, Eylea, Stivarga, Xofigo, Riociguat; subject to regulatory approval
*Assuming Fx rates of 1H 2013
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
Priority 2012
Target
2013*
Aspiration
2015
 HealthCare: Accelerate sales growth €18.6bn
 Pharma: Successfully commercialize new
products and realize emerging markets
(EM) opportunity
 New product sales¹
 EM growth
 Consumer Health: Aspire to become #1
OTC company
€7.8bn ~€9bn
 HealthCare: Improve margins
 Pharma
 Consumer Health
27.5%
29.9%
24.2%
slightly up
up
below PY
towards 29%
≥31%
~25%
€10.8bn
€368m
7.3%
high-single-digit
% to >€11bn
~€1.4bn
high-single
digit %
CAGR ~7%
towards €13bn
>€2.5bn
high-single
digit %
CAGR ~6%
towards €22bn
mid-single-digit
% to ~€8bn
mid-single-digit
% to ~€19bn

Q2 2013 – HealthCare: New Products and
Consumer Care Drive Growth
Page 28
*before special items
Q2 2013 Sales Earnings1
Pharma
+6% (+10%)
Consumer
Health
+1% (+4%)
36%
HealthCare €4,800m; +4% (+8%)
2,8311,969
Price
0%
Volume
+7%
Fx
-4%
Portfolio
0%
In € million, ∆% yoy, () = Fx & portf. adjusted
Q2‘12 Q2‘13 Q2‘12 Q2‘13
810
921
438 407
+14%
-7%
1,248
1,328 +6%
330 -8%
902
987 +9%
572
302
Adj.
EBITDA*
Adj.
EBIT*
685 +20%
1 Prior-year figures restated• Bayer Investor Presentation • Meet Management • October 2013

Full Year 2012 –
HealthCare
Page 29
2012 Sales Earnings1
Pharma
+9% (+4%)
Consumer
Health
+8% (+4%)
36%
HealthCare €18,604m; +8% (+4%)
10,7987,806
Price
0%
Volume
+4%
Fx
+4%
Portfolio
0%
FY‘11 FY‘12 FY‘11 FY‘12
2,972
3,233
1,730
1,886
+9%
+9%
4,702
5,119 +9%
1,325
+10%
3,367
3,788 +13%
2,042
1,460
Adj.
EBITDA*
Adj.
EBIT*
2,328 +14%
1 Prior-year figures restated

CropScience – Above Market Growth at
Benchmark Profitability
Priority 2012
Target
2013*
Aspiration
2015
 Above-market sales growth
+12.4%
to €8.4bn
high-single
digit %
towards €9bn
CAGR ~6%
towards
€10bn
 Translate R&D effectively into new
product sales (CP products launched since 2006)
€1.1bn ~€1.4bn ~€1.9bn
 Extend seeds footprint +14%
 Maintain industry leading profitability level 24.2%
slight
improvement
~24%
double-digit %
growth p.a.
CP: Crop Protection
double-digit %
growth

Q2 2013 – CropScience:
Continued Good Momentum
Page 31
Crop Protection
+6% (+8%)
Environmental
Science
+2% (+6%)
Seeds
+4% (+2%)
CropScience €2,392m; +5% (+7%)
Price
+2%
Volume
+5%
Fx
-3%
Portfolio
+1%
1,953
Q2‘12 Q2‘13 Q2‘12 Q2‘13
549
624 +14%
435
514 +18%
Adj.
EBITDA*
Adj.
EBIT*
193
246
1 Prior-year figures restated• Bayer Investor Presentation • Meet Management • October 2013

Full Year 2012 –
CropScience
Page 32
Crop Protection
+16% (+13%)
Environmental
Science
+9% (+5%)
Seeds
+17% (+14%)
CropScience €8,383m; +16% (+12%)
Price
+1%
Volume
+12%
Fx
+4%
Portfolio
-1%
6,741
FY‘11 FY‘12 FY‘11 FY‘12
1,654
2,026 +22%
1,168
1,543 +32%
Adj.
EBITDA*
Adj.
EBIT*
680
962

#after reproduction
MaterialScience – Higher Asset Utilization &
Efficiency Measures Are Driving Performance
2012 Target 2013* Aspiration 2015
 Sales +2.9% to €11.5bn
(volumes +2%)
 Adj. EBITDA +8% to
€1,262m
 CFROI# 5.7% < WACC
7.1%
 Grow business (volume)
above global GDP
 Defend market leading
positions in PCS and PUR
 Realize 150 bp margin
contribution through new
 Optimize asset structure
in Germany
 CFROI# > WACC
 Sales: not quite reach
prior-year figure
 Adj. EBITDA: below prior-
year figure
 Q3‘2013 vs Q2‘2013:
Sales and adj. EBITDA
to increase

Q2 2013 – MaterialScience: Performance
Down Year-Over-Year, Up Quarter-Over-Quarter
Page 34
**CAS: Coatings, Adhesives, Specialties *** IO: Industrial Operations
CAS**
-6% (-4%)
MaterialScience €2,875m; -3% (-1%)
Price
-1%
Volume
0%
Fx
-1%
Portfolio
0%
1,546
664
IO***
-5% (-4%)
Q2‘12 Q2‘13 Q2‘12 Q2‘13
Adj.
EBITDA*
Adj.
EBIT*
383
274 -28%
223
112 -50%
493
172
Polyurethanes
+2% (+3%)
Polycarbonates
-9% (-8%)

Full Year 2012 –
MaterialScience
Page 35
MaterialScience €11,491m; +6% (+3%)
Price
+1%
Volume
+2%
Fx
+4%
Portfolio
-1%
5,987
FY‘11 FY‘12 FY‘11 FY‘12
Adj.
EBITDA*
Adj.
EBIT*
1,171
1,262 +8%
589
613 +4%
Polycarbonates
-3% (-7%)
CAS**
+3% (+4%)
2,819
IO***
+8% (+6%)
1,972
714
Polyurethanes
+12% (+8%)
**CAS: Coatings, Adhesives, Specialties *** IO: Industrial Operations*before special items

Q2 2013 – Regional Performance:
Growth Led By Emerging Economies
Page 36
Africa &
Middle East
Eastern
Europe
Emerging Economies
Emerging
Economies¹
+6%
Others²
+12%
USA
+1%
Western Europe
+4%
Q2 2013 Group Sales by Region
Group €10,360m; +5%
~1,100
+16%
~1,500
+2%
~400
-1%~700
+3%
¹ Emerging economies include: Latin America, Asia w/o Japan, Australia,
New Zealand, Africa and Middle East incl. Turkey, Eastern Europe
² Others = Japan, Australia, New Zealand, Canada
³ Emerging Asia = Asia w/o Japan, Australia, New Zealand
In € million, ∆% yoy Fx adjusted
37%
11%
31%
21%
Latin
America
Emerging
Asia³

Full Year 2012 –
Regional Performance
Page 37
Africa &
Middle East
Eastern
Europe
Emerging Economies
Emerging
Economies¹
+7%
Others²
+4%
USA
+9%
Western Europe
0%
2012 Group Sales by Region
Group €39,741m; +5%
~4,900
+12%~5,700
+5%
~1,800
0%~2,400
+10%
³ Emerging Asia = Asia w/o Japan, Australia, New Zealand
In € million, ∆% yoy Fx adjusted
37%
11%
31%
21%
Latin
America
Emerging
Asia³

Q2 2013 –
Cash Flow And Net Debt Development
Page 38
+€1.5bn
9.0
GCF oFCF
1,680
Invest-
ments
502 1,034
∆
y-o-y +37% +8%
NCF
1,536
+10% +13%
March 31, 2013 June 30, 2013
7.5
Q2 2013 Cash Flow Net Debt Development
Cash Flow in € million, Net Debt in € billion

Full Year 2012 –
Cash Flow and Net Debt Development
Page 39
7.0GCF oFCF
4,556
Invest-
ments
1,930 2,601
∆
y-o-y -12% -24%
NCF
4,531
-10% +20%
Dec 31, 2011 Dec 31, 2012
7.0
2012 Cash Flow Net Debt Development
Cash Flow in € million, Net Debt in € billion

Investor Handout – Meet Management
Pharma Pipeline Update
October 2013 – London

Maximizing the Value of New Launch Products
Delivering Promising Pipeline Assets and
Enhancing the Profile of New Products
Page 41
● Comprehensive life-cycle management program underway
● Adding new indications and refining the clincial profile to enhance
the long-term growth potential
Five New Molecular Entities Selected for Accelerated Development
● Positive proof-of-concept increases confidence in NME-quality
● Targeting to enter phase III by 2015
NME: New molecular entity

Cardiology
 Acute Care Diseases
 Vascular Diseases
 Heart Diseases
 Kidney Diseases
Oncology
 Cell Cycle / Survival Signaling
 Immunotherapy / Antibody-
Drug Conjugates
 Tumor Metabolism/Hypoxia
 Chromatin Modulation /
OncoGenomics
Hematology
 Anemia and other blood
diseases
 LCM long acting factor VIII
Gynecological Therapy
 Endometriosis
 Uterine Fibroids
Common Mechanism Research & Other Areas
 Leveraging the full potential of development compounds
 Ophthalmology
 Inflammation
 LCM Fertility Control / Menopause-Management
 Magnetic Resonance and Computed Tomography Contrast Media Research
R&D Strategy Focusses on Innovation in Areas with High Unmet Medical Need
Common Mechanism Research & Other Areas
Hematology Gynecological Therapy
Cardiology Oncology
Research Areas at Pharma

Five New Pipeline Assets Selected for
Accelerated Development
Selection of major pharma pipeline projects in clinical phase I to III
Phase I (12) Phase II (11) Phase III (15)
Cancer
BAY 1000394
(CDK-Inhibitor)
Heart Failure
BAY 1067197
(Part. Aden. A1 Agonist)
Diabetic Nephropathy
Finerenone
(MR-Antagonist)
Additional Indications
Sorafenib
Submental fat removal
Sodium-Deoxycholate
Breast Cancer
Sorafenib
Cancer
BAY 94-9343
(Mesothelin-ADC)
Heart Failure
BAY 86-8050
(Vasopr. Rec. Antag.)
CHF
Finerenone (BAY 94-8862)
(MR-Antagonist)
Cancer
Regorafenib
Skin and Lung Infections
Tedizolid
Adjuvant HCC
Sorafenib
Anemia
Molidustat (BAY 85-3934
(HIF-PH Inhibitor)
Heart Failure
BAY 1021189
(sGC Stimulator)
NHL
Copanlisib (BAY 80-6946)
(PI3K-Inhibitor)
PH.IIP
Riociguat (sGC Stimulator)
Hemophilia
BAY 94-9027
(peg rFVIII)
Adjuvant RCC
Sorafenib
Sympt. Uterine Fibroids
BAY 1002670
(S-PRAnt)
Endometriosis
BAY 1026153
Bronchiectasis
BAY 85-8501
Neutroph. Elastase Inhibit.
Diffuse Systemic sclerosis
Gram-negative Pneumonia
Amikacin inhale
VV Atrophy
Prasterone
(Vaginorm)
Cancer
BAY 2010112
PSMA BiTE Antibody.
Cancer
BAY 1143572
PTEFb Inhibitor
Cancer
Refametinib
(BAY 86-9766)
Raynaud's phenomenon
Myopic CNV
Aflibercept
Contraception
LCS 16
Cancer
BAY 1179470
FGFR2 Ab
Cancer
BAY 1125976
Allosteric AKT 1/2 - I.
Cancer
Radium-223-Dichlorid
DME
Aflibercept
Non-CF Bronchiectasis
Cipro DPI
MACE prevention
Rivaroxaban
HCC 2nd line
Regorafenib
CHF and CAD
Rivaroxaban
New molecular entities
(NME)
Life cycle management
(LCM)
Status as of September 2013

Five New Pipeline Assets Expected to Enter
Phase III by 2015
MR: Mineralocorticoid receptor; NHL: Non-Hodkin´s lymphoma
HIF-PH: HIF prolyl hydroxylase; sGC: Soluble guanylate cyclase;
sPRM: Selective progesterone receptor modulator
Project Mechanism Indication Status Milestones
Copanlisib
(BAY 80-6946)
PI3-Kinase
Inhibitor
Cancer
Phase IIa in
NHL ongoing
 Primary completion expected end
2014
 Start phase II in add. tumor types mid
2014e
Finerenone
(BAY 94-8862)
MR Antagonist
Chronic heart
failure (CHF)
Diabetic
nephropathy
Phase IIb in
CHF initiated
 Primary completion expected early
2015
Molidustat
(BAY 85-3934)
HIF-PH Inhibitor Anemia
Phase I
completed
 Start phase IIb expected Q4 2013
sGC-Stimulator
(BAY 1021189)
sGC Stimulator
Worsening
chronic heart
failure
Phase I
completed
 Start phase IIb expected Q4 2013
sPRM (S-PRAnt)
(BAY 1002670)
Progesterone
Receptor
Antagonist
Symptomatic
uterine fibroids
Phase I
completed
 Start phase III expected 1H 2014

Copanlisib (BAY 80-6946) –
A PI3K-Inhibitor in Phase II in Cancer
● In most tumor cells, the PI3K-signaling
cascade is activated and provides
important tumor growth and survival
signals
● Copanlisib is a pan class I PI3K-inhibitor
with dominant  activity
● Copanlisib has shown a broad anti-
tumor spectrum in preclinical tumor
models
● Phase IIa in Non-Hodgkin’s lymphoma
is ongoing; completion expected end of
2014
Phosphatidylinositol-3 kinases (PI3K)
play a central role in cellular signal
transduction processes
Copanlisib

Copanlisib Has Shown Substantial Activity in
Follicular Lymphoma
*Data from Patnaik A et al.; ASH 2012; 18FDG-PET: 18fluorodeoxyglucose - positron
emission tomography
18FDG-PET scans of a follicular lymphoma
patient with partial response
● Phase I trial successfully completed
● 100% of patients (6/6) with
follicular lymphoma (FL)
responded to therapy achieving a
partial response as best response*
● Maximum response duration > 840
days
● Encouraging signals in diffuse
large B cell lymphoma patients
● 18FDG-PET data suggest that
Copanlisib has rapid antitumor activity
52-year-old female with FL, grade 1-2, diagnosed stage IVa

Selective Progesterone Receptor Modulation
for Treatment of Uterine Fibroids
● Uterine fibroids are the most common
benign tumors in women of reproductive
age: 5-10% of premenopausal population
suffers from symptomatic fibroids
● Symptoms may include heavy menstrual
bleeding and tumor size related symptoms
● Current therapies include surgical
procedures or short-term use of GnRH
analogs for estrogen depletion
● Growth of fibroids strongly depends on
progesterone and estrogen
● Progesterone receptor modulation may
offer long-term treatment of uterine fibroids
without estrogen depletion side effects of
GnRH analogs
GnRH: Gonadotropin-releasing hormone
sPRM: Selective progesterone receptor modulator
PR
Transcription
Activation
Endometrial
Modulation &
Fibroid Growth
sPRM
Transcription
Endometrial
Modulation &
Fibroid Growth
PR

sPRM (BAY 1002670) – For the Treatment
of Symptomatic Uterine Fibroids
● BAY 1002670 is a novel oral, highly
potent and selective progesterone
receptor modulator
● Exhibits marked efficacy in an
innovative humanized fibroid disease
model1
● Phase I data (N=67) showed proof of
concept including:
● Reduction of bleeding: induced
amenorrhea (non-bleeding) in >60%
of women treated with dosages
>1mg/day
● Reversal of amenorrhea after
treatment cessation
● No prohibitive safety findings
1 Wagenfeld et al. Hum Reprod. 2013 Aug;28(8):2253-64
Phase I data BAY 1002670
Dose effect curve for amenorrhea rate
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
0102030405060708090100
Point estimate (median)
90% Credible interval
Observed rate
Efficacy threshold
Dose (mg)
Amenorrhearate(%)

Renal Anemia is an Important Area of Unmet
Medical Need
● Diseased kidneys do not produce
sufficient levels of erythropoietin (EPO)
in response to hypoxia, leading to
anemia
● CKD/ESRD is the leading cause of
anemia in industrialized countries
● Substitution with parenteral EPO is
standard of care – however, un-
physiologically high EPO doses
correlate with significant side effects
● There is a need for novel therapies that
lack the side effects of high doses of
EPO-substitution
CKD: Chronic kidney disease;
ESRD: End-stage renal disease
Anemia
Low oxygen
level (Hypoxia)
Normal kidney
function
Impaired kidney
function
EPO
Red blood cell
formation
EPO
Normal red blood
cell count
Insufficient
formation of
red blood cells

Molidustat – An Oral HIF-PH Inhibitor for
Treatment of Renal Anemia
Increased red blood
cell production
Inhibition of HIF-PH increases the
stability of HIF resulting in production of
endogeneous EPO - potential novel
therapeutic approach for the treatment
of renal anemia
Under normal oxygen conditions, HIF
gets hydroxylated by HIF-PH and then
degraded
Under hypoxia conditions, HIF is
activated and induces the synthesis of
erythropoietin (EPO) in the kidneys
which stimulates red blood cell
formation
Nucleus
HIFHIF
Low oxygen levels
HIF
Hydroxylation
HIF
Normal oxygen levels
HIF-PH
O2
hHIFhHIF
Degradation
Degraded HIF
HIFHIF
Inhibition of HIF-PH in renal anemia
HIF-PH
O2
EPO ↑
Nucleus
EPO ↑
Nucleus
Increased red blood
cell production
HIF: Hypoxia-inducible factor
HIF-PH: HIF prolyl hydroxylase (enzyme)
hHIF: hydroxylated HIF

Molidustat (BAY 85-3934) –
Proof of Concept Demonstrated
Page 51
EPO: Erythropoietin
HIF-PH: HIF prolyl hydroxylase
● Molidustat is a novel oral inhibitor of the
enzyme HIF-PH
● In development for the treatment of
anemia associated with chronic kidney
disease
● Phase I in healthy subjects showed:
● Significant increase of EPO levels
after ≥ 12.5 mg
● Significant increase of reticulocytes
for doses ≥ 37.5 mg
● No prohibitive safety findings
Maximal EPO concentration after single
dose administration of Molidustat (Phase I)
0
10
20
30
40
50
Placebo 5 mg 12,5 mg 25 mg 37,5 mg 50 mg
EPO[U/L]
Dose

sGC-Stimulation to Address Unmet Medical
Need in Patients with Heart Failure
● Worsening chronic heart failure is an
established indication with high medical
need
● Limitations of standard of care include
tolerance, oxidative stress, endothelial
dysfunction and venoselectivity
● sGC stimulation can improve
hemodynamics via restoration of
cardiac and vascular cGMP signaling
● sGC stimulation may provide a new
principle to reduce event rates in
patients with worsening chronic heart
failure
Clinicalstatus
Patients who require hospitalization due to HF
(worsening HF) have a poor prognosis with high
rates of re-hospitalization and death
sGC: Soluble guanylate cyclase;
HF: Heart failure

sGC Stimulator (BAY 1021189) –
Improvement of Cardiovascular Function
sGC: Soluble guanylate cyclase;
HF: Heart failure
Phase I of BAY 1021189 show improved
cardiac output (n = 36)
Fi gur e: Means and st andar d devi at i ons f or i mpedance car di ogr aphy over t i me f or Car di ac Out put ( L/ mi n) over t i me ( val i d f or PD)
Day 1
0H 00M 1H 00M 2H 00M 3H 00M 4H 00M
3. 0
3. 5
4. 0
4. 5
5. 0
5. 5
6. 0
6. 5
7. 0
● BAY 1021189 is a novel sGC stimulator
suitable for once-a-day dosing
● Phase I successfully completed –
improvement observed in important
cardiological parameters, including:
● Cardiac output / index (“volume of
blood pumped by the heart”)
● Systemic vascular resistance
● Stroke volume
● No untoward safety findings in phase I
● BAY 1021189 may offer a new treatment
modality for HF
 Placebo
 5 mg
 7.5 mg
 10 mg
0 1 2 3 4
Time (h)
33.544.55.05.56.06.57.0
Cardiacoutput(L/min)

MR-Inhibition is a Proven Principle in the
Treatment of Heart Diseases
MR: Mineralocorticoid receptor
HF: Heart failure
aldosterone / cortisol
Overactivated
MR
causing e.g.
 Na+ and water retention
 K+ loss
 Hypertensive effects
 Vascular
inflammation/injury
 Myocardial/renal fibrosis
 Proteinuria
MR antagonist
KidneyHeart
● MR has multiple functions:
● Regulation of salt, fluid homoestasis
and blood pressure
● Mediator of oxidative stress,
subsequent inflammation, fibrosis and
cardiorenal disease
● Steroidal MR antagonists spironolactone
and eplerenone have been shown to be
effective in reducing cardiovascular
mortality in patients with HF but are
underutilized due to the risk of
hyperkalaemia, renal dysfunction and
anti-androgenic / progestogenic side
effects
● Steroidal MR antagonists are not
approved for kidney diseases eg. diabetic
nephropathy

Finerenone – A Novel Non-Steroidal and
Selective MR-Antagonist
CHF: Chronic heart failure; CKD: Chronic kidney disease
BNP: Brain natriuretic peptide;
B. Pitt et al., Eur. Heart J. 2013; doi:10.1093/eurheartj/eht187
Mean increases in serum potassium concentration
Finerenone10mg o.d.: 0.21 mmol/l
Spironolactone: 0.45 mmol/l
P <0.001
Mean change in estimated glomerular filtration rate
Finerenone10mg o.d.: -2.69 ml/min/1.73m²
Spironolactone: -6.70 ml/min/1.73m²
P <0.05
Median change from baseline in NT-proBNP
Finerenone 10mg o.d.: -193 pg/mL
Spironolactone: -170 pg/mL
(descriptive analysis)
Finerenone was generally well tolerated
Decreased BNP/NT-proBNP – a key
parameter for cardiac stress
Indicates lower incidence of
hyperkalaemia
Indicates lower incidence of worsening
of renal function
Phase II results suggest improved safety with at least similar efficacy on key
cardiac and renal parameters compared to spironolactone
Data at Day 29 +/- 2 in part B of the study with 392 pts in total;Spironolactone was given at an initial dose of 25mg o.d. and uptitrated to 50mg o.d.
on day 15±1 if sodium potassium concentration remained ≤4.8mmol/L; * eGFR 30-60 ml/min/1.73m²
Key phase II findings in patients with CHF and moderate* (part B) CKD :

Major Expected Pharma Pipeline Newsflow
2014/2015
Estimated primary study completion as of October 2013
HCC: Hepatocellular carcinoma; NHL: Non-Hodkin‘s lymphoma;; MR: Mineralocorticoid receptor; HF: Heart failure;
PI3-Kinase: Phosphatidylinositol-3 kinases, sGC :Soluble guanylate cyclase; HIF-PH: HIF prolyl hydroxylase
Page 56
2014
2015
BAY 94-9027 (Long-acting factor VIII) Phase III data in hemophilia A
Nexavar Completion of phase III in breast cancer (RESILIENCE)
Completion of phase III in adjuvant HCC (STORM)
BAY 85-8501 (Elastase Inhibitor) Completion of phase II in bronchiectasis
Amikacin inhale Completion of phase III in gram neg. pneumonia
Nexavar
Copanlisib (PI3-Kinase Inhibitor) Completion of phase II in NHL
Stivarga Completion of phase III in 2nd-line HCC
Finerenone (MRAntagonist) Completion of phase II in worsening chronic HF
Finerenone (MR Antagonist) Completion of phase II in diabetic nephropathy
Molidustat (HIF-PH Inhibitor) Completion of phase II
sGC Stimulator Completion of phase II worsening chronic HF

Life-cycle Management for
New Launch Products

New Launch Products Have a Business
Transforming Potential
Combined* Peak Sales Potential >€5.5bn
Rivaroxaban AfliberceptRegorafenib
Radium-223
dichloride
Riociguat
2011 2012 2012 2013 2013
*Combined peak sales potential for Xarelto, Stivarga, Eylea, Xofigo
and Riociguat assuming approvals and launches as plannedPage 58
>€2bn ≥€1bn ≥€1bn ≥€1bn ≥€500m
Launch in first/main indication

COMPASS –
Coronary artery
disease / peripheral
artery disease1
Phase III VIVID-
EAST – Diabetic
macular edema study
in China, Russia,
Asia-Pacific1
Phase III
combination study
in metastatic
prostate cancer2
Phase III in
hepatocellular
carcinoma, 2nd line1
Phase IIB –
Pulmonary
hypertension due to
idiopathic interstitial
pneumonia2
COMMANDER –
Chronic heart failure
and coronary artery
disease1
Potential add. studies
under evaluation
Phase II
combination study
in metastatic breast
cancer2
Phase III in
colorectal cancer
post metastectomy2
Phase IIB – Diffuse
systemic sclerosis2
PIONEER-AF – Atrial
fibrillation with
percutaneous
coronary intervention1
Phase I/II
combination studies
in additional cancer
types2
Phase I combination
studies to support
programs in various
cancer types2
RESPITE – Phase
IIIB in PAH patients
who did not respond
to PDE5 inhibitors2
X-veRT – Nonvalvular
atrial fibrillation and
cardioversion1
Signal-generating
studies in Raynaud's
phenomenon1 and
cystic fibrosis2
A Pipeline of its Own:
Life-cycle Opportunities of New Products
This summary represents a selection of projects
1: ongoing
2: planned
Page 59

Expanding and Strengthening the Profile
of Xarelto
 Broadest label among the new oral anticoagulants with 7 approved indications
 Significant medical need in additional thromboembolic disease areas
 Heterogeneous patient population with atrial fibrillation deserves further
characterisation
 Two-dimensional approach in life-cycle management
Expansion into addional
thromboembolic disease areas
Strenghtening the clinical profile in
patients with atrial fibrillation
 Peripherial arterial disease / coronary
arterial disease
 Chronic heart failure with coronary
arterial disease
 Patients with percutaneus coronary
intervention
 Patients who undergo cardioversion
 Patients undergoing ablation

Entering Additional Cancers of the
Gastro-Intestinal Tract with Stivarga
 Exploiting new opportunities on the basis of positive clinical data in metastatic
colorectal cancer and 2nd line hepatocellular carcinoma
 3-dimensional mode of action suggesting activity in a broad range of tumor
types
 Life-cycle management targets:
 Phase III in 2nd-line hepatocellular
carcinoma underway
 Phase III in colorectal cancer after
resection of liver metaseases
 Signal generating phase I studies in
various cancer types
HCC: Hepatocellular carcinoma
CRC: Colorectal cancer
GIST: Gastrointestinal stromal tumors
Expand in HCC and CRC Expand to additional tumor types

Phase III Trial Design for Stivarga in
Advanced HCC and in Adjuvant CRC
HCC: Hepatocellular carcinoma; CRC: Colorectal cancer;
OS: Overall survival; DFS: Disease-free survival
 Status: enrolling
 Primary completion
2H 2015e
 Status: start of enrollment
planned for end of 2013
 Duration expected ~50
months
1. Phase III in liver cancer
2. Phase III in colorectal cancer

Addressing Multiple Life-Cycle Opportunities
for Xofigo (Radium-223-dichloride)
Life-Cycle
Opportunities
Repeat dosing in CRPC
Higher dose in CRPC
Earlier disease stages
of CRPC
Combination study in CRPC
Expansion into additional
cancer types
Addressed Through
Phase II trial assessing the short and long-term
safety of re-treatment
Phase II trial with dose higher than the
approved 50 kBq/kg
Phase I and/or II studies in breast cancer,
osteosarcoma and potentially in additional
cancer types
Phase III combination trial with abiraterone in
chemo-naïve patients with asymptomatic or
mildly symptomatic bone metastases
CRPC: Castration resistant prostate cancer

Expanding Xofigo’s Position in Castration-
Resistant Prostate Cancer Treatment
For details on approved indications see respective product labels
Zytiga is a trademark of Johnson & Johnson
Zytiga (abiraterone)
Potential new disease
area for combination
therapy
Asymptomatic bone metastases Symptomatic bone metastases
Metastatic castration-resistant prostate cancer
Novel antihormonal agents
(eg. Zytiga [abiraterone])
 Combination therapy with abiraterone, an inhibitor of testosterone synthesis
 Expansion to earlier disease stages enhances accessible patient population
 A delay of skeletal-related events is of major clinical importance
Potential new disease area
for combination therapy
Chemotherapy
Xofigo (radium Ra 223 dichloride injection)

Radium-223-Dichloride – Design of Phase III
Combination with Abiraterone
mCRPC: Metastatic castration-resistant prostate cancer;
SSE FS: Symptomatic skeletal event -free survival
 Start of recruitment planned for 1H 2014
 Secondary endpoints (selection): overall survival, pain, quality of life, radiographic
progression-free survival
 Timeline: primary study completion 2017e
N~800

Potential of sGC Stimulation Goes Beyond
Vasodilation
sGC: Soluble guanylate cyclase
cGMP: Cyclic guanosine monophosphate
cGMP
sGC - Stimulation
Schlossmann J & Schinner E. Naunyn Schmiedebergs Arch Pharmacol 2012;doi:10.1007/s00210-012-0730-6.
Stasch J-P et al. Circulation 2011;123:2263–73.
Evgenov OV et al. Nature Rev Drug Disc 2006;5:755–68.
Effect of riociguat on bleomycin-
induced fibrosis in a mouse model (lung)
Anti-fibrosis Vasodilation Anti-proliferation Anti-inflammation
Evgenov OV et al. Poster presented at ATS, Denver, USA; 13–18 May 2011.
*p<0.05 vs control; †p=0.05 vs bleomycin

Adempas – Life Cycle Management Beyond
PAH and CTEPH
PAH: Pulmonary arterial hypertension; CTEPH: Chronic thromboembolic
pulmonary hypertension; PH-ILD: Pulmonary hypertension due to
interstitial lung disease
Page 67
 Positive phase II data in PH-ILD prompt initiation of phase IIb in PH-IIP (a specific sub-
segment of PH-ILD)
 Majority of PH-IIP patients suffer from pulmonary hypertension due to idiopathic
pulmonary fibrosis
 No approved treatment option
 Chronic systemic autoimmune disease characterized by fibrosis
 No approved treatment
 Strong preclinical antifibrotic data
Pulmonary hypertension with idiopathic interstitial pneumonia (PH-IIP)
Diffuse systemic sclerosis (SSc)

Summary
 Proven commitment and ability to innovate
 Enhancing the profile of new products through life-cycle management
 Accelerating development timelines for 5 NMEs to enter phase III by 2015
 Addressing significant unmet medical need
NME: New molecular entity

Bayer HealthCare

Leading Positions in Key Healthcare
Markets
Pharma
€10,798m
 Leading positions in key therapeutic categories
Consumer Care
€3,853m
 Global #2 in OTC-pharmaceuticals
Medical Care
€2,650m
 #1 in fluid injection systems, #1 in contrast media,
#4 in blood glucose meters
Animal Health
€1,303m
 Global #5, #2 in parasiticides
Sales Split by Segment 2012
25%
58%
7%
21%
14%
HealthCare €18,604m

Building Growth Momentum
in HealthCare
2012 CAGR 2015e*
¹ Sales ∆ Fx & portf. adjusted

HealthCare –
Building Growth Momentum, Improving Margins
Priority 2012
Target
2013*
Aspiration
2015
 HealthCare: Accelerate sales growth €18.6bn
 Pharma: Successfully commercialize new
products and realize emerging markets
(EM) opportunity
 New product sales¹
 EM growth
 Consumer Health: Aspire to become #1
OTC company
€7.8bn ~€9bn
 HealthCare: Improve margins
 Pharma
 Consumer Health
27.5%
29.9%
24.2%
slightly up
up
below PY
towards 29%
≥31%
~25%
¹ Xarelto, Eylea, Stivarga, Xofigo and Riociguat; subject to regulatory approval
*Assuming Fx rates of H1 2013
€10.8bn
€368m
7.3%
high-single-digit
% to >€11bn
~€1.4bn
high-single
digit %
CAGR ~7%
towards €13bn
>€2.5bn
high-single
digit %
CAGR ~6%
towards €22bn
mid-single-digit
% to ~€8bn
mid-single-digit
% to ~€19bn
Published on Feb 28, 2013, Target 2013 as of July 31, 2013

1H 2013 –
Growth in All Segments
1H 2013 HealthCare Sales Earnings
Pharma
+4% (+8%)
Consumer
Health
+2% (+4%)
36%
5,9353,848
1H‘12 1H‘13 1H‘12 1H‘13
1,550
1,753
879 852
+13%
-3%
2,429
2,605 +7%
671 -4%
1,763
1,940 +10%
1,092
645
Adj.
EBITDA*
Adj.
EBIT*
1,295 +19%
HealthCare €9,243m; +3% (+6%)
Price
0%
Volume
+6%
Fx
-3%
Portfolio
0%

1H 2013 –
Top 10 HealthCare Product Performance
MI: Myocardial infarction
Sales in € million; ∆% y-o-y Fx adjusted
+7%
-11%
-12%
+2%
+9%
+2%
+1%
-1%
+1%
607
523
421
373
444
359
374
367
312
271
Hemophilia A
Multiple Sclerosis
Anticoagulation
Contraception
Cancer
Blood Glucose Meter
Contraception
Analgetic & MI
Prevention
Paraciticide
>100%
Hypertension

1H 2013 – Strong Business Momentum in
All Regions, Especially Emerging Markets
Emerging Economies
25%
1H 2013 HealthCare Sales
Latin
America
Eastern
Europe
Africa &
Middle East
~1,110
+12%
~960
+9%
~560
+11%
~430
-3%
24%
USA
+5%
30%
33%
13%
Emerging
Economies¹
+9%
Emerging
Asia³
Western
Europe +4%
Others²
+10%
³ Emerging Asia = Asia without Japan, Australia, New Zealand
HealthCare €9,243m; +3% (+6%)

New Products Drive Growth and
Rejuvenate Portfolio
Peak Sales Potential*
* from 5 new products

Pharma – New Products Drive Growth and
Rejuvenate Portfolio
86
368
~1,400
>2,500
2011 2012 2013e 2015e
Sales in €m
1H: 583
Xarelto: 374
Eylea: 122
Stivarga: 87
CTEPH: Chronic thromboembolic pulmonary hypertension; CRVO: Central retinal
vein occlusion; PAH: Pulmonary arterial hypertension;
wAMD: Wet age-related macular degeneration
 World-class launch, achieved leading position in
the novel anticoagulant segment in key markets
 Strong uptake in first markets in wAMD,
approved in CRVO in EU (08/13)
 Successful launch in US and Japan,
approved in Europe (08/13)
 Launched in US, filed in EU (12/12)
 Submitted for PAH and CTEPH (02/13),
positive FDA AdCom recommendation

Xarelto – Broadest Profile of Any Novel Oral
Anticoagulant
Peak sales potential > €2bn
 Oral Factor Xa inhibitor
 Broadest label of novel oral anticoagulants
with once-daily dosing advantage*
 Recent EU approval for prevention of
atherothrombotic events after acute
coronary syndrome (05/13)
 Two-dimensional approach in life-cycle
management inititated:
 Expansion into additional
thromboembolic disease areas
 Strenghtening the clinical profile in
patients with atrial fibrillation
*exception 15mg BID dosing for treatment of acute DVT/PE or 2.5mg
BID for ACS sec. prevention

Xarelto –
Development in Selected Markets
Source: IMS
1: Ex-Mnf Sales Market Share (incl. PI) in all dosage strengths and pack sizes,
2: Sales Market Share (Ret+Hosp) in %,
3: Retail Sales Market Share, marketed by J&J
Germany1 Japan2 United States3
Xarelto Pradaxa Eliquis
Jan
2012
31%
22%
<1%
June
2012
Sep
2013
Sep
2013
0%
10%
20%
30%
40%
50%
Jan
2012
38%
11%
2%
Sep
2013
19%
27%
3%

Eylea – Developed for the Treatment of
Multiple Back-of-the-Eye-Diseases
Peak sales potential ≥ €1bn
 Eylea is an anti VEGF therapy, formulated
for an injection into the eye
 Approved for fixed every-other-month dosing
 Important treatment alternative for patients
and phycisians
 Comprehensive development program to
address major eye diseases*:
 Launched in wAMD; 2013 roll-out in
Europe, Latin America and Asia
 Approved in CRVO in Europe (08/13)
 Positive phase III in mCNV (06/13) and
DME (08/13)
*Bayer has marketing rights ex-US; VEGF: Vascular endothelial growth factor; wAMD:
Wet age-related macular degeneration; CRVO: Central retinal vein occlusion; mCNV:
Myopic choroidal neovascularization; DME: Diabetic macular edema

Eylea – Successful Launch Performance
in Australia and Japan
Source: Quarterly IMS MIDAS data in Euros, Q3 2013

Stivarga – Developed as a Treatment for
Cancers of the Digestive Tract
 Three-dimensional anti-cancer activity by
inhibiting: neoangiogenesis, proliferation &
signalling of tumor microenvironment
 Successful introduction in US (mCRC,
GIST) and Japan (mCRC)
 Approved for GIST in Japan (08/13)
 Approved for mCRC in Europe (08/13)
 Expanding to new indications
 Phase III in 2nd line liver cancer initiated
 Start of phase III in CRC (adjuvant
therapy after resection of liver
metastases) 2H 2013e
mCRC: Metastatic colorectal cancer
GIST: Gastrointestinal stromal tumors

Xofigo – A New Treatment for CRPC
Patients with Bone Metastases
 1st in class alpha-pharmaceutical delivering
high energy, short ranging alpha-particles
 44% improvement in overall survival in
phase III trial demonstrated*
 Launched in US (06/13) for treatment of
CRPC with symptomatic bone metastases
and no known visceral metastatic disease
 473 centres patient-ready in the US#
 Submitted for approval in Europe (12/12)
 Studies in earlier settings of prostate cancer,
including combination studies and studies in
other tumors (such as breast cancer and
osteosarcoma) planned
CRPC: Castration-resistant prostate cancer;
*Results supported by a delay in time to first symptomatic skeletal event
#As of September 20, 2013

Adempas (Riociguat) – First-in-Class sGC
Stimulator for Treatment of Hypertension
 Oral soluble guanylate cyclase (sGC)
stimulator
 Demonstrated efficacy in phase III in PAH
and as the first drug ever in CTEPH
 First approval in CTEPH obtained in
Canada (09/13)
 Filed in PAH/CTEPH in US/EU (02/13)
 Recommended for approval in PAH and
CTEPH by FDA’s Advisory Committee
(06/13)
 Comprehensive life cycle program under
initiation
*for indications PAH and CTEPH; CTEPH: Chronic thromboembolic
pulmonary hypertension; PAH: Pulmonary arterial hypertension
Peak sales potential ≥ €0.5bn*

Established Pharma Products

The Leader in Women’s HealthCare
Yaz family
Sales ∆% y-o-y, () Fx adj.
Women’s Healthcare 2012
€3,154m
+5% (+2%)
+17 (+9)Mirena
+7 (+5)Diane
-2 (-5)
+37 (+35)Qlaira
Other products +13 (+10)
0 (-1)Microgynon
-31 (-31)Valette
-8 (-8)Meliane
+6 (+4)Angeliq

Strengthening Women‘s Health Business –
Acquisition of Conceptus, Inc.
 Bayer successfully completed the public tender offer to acquire all shares in
Conceptus for a purchase price of €780m
 US-based company developing the Essure® procedure, the leading non-
surgical permanent birth control method proven by >700,000 procedures
 Significant synergies expected from leveraging existing business power
Essure ®
Permanent
Long-term
Short-term
No children Active family planning Family planning finalized
IUD (Mirena)
IUD (Skyla)
Oral contraceptives (e.g. YAZ)

Mirena – The Leading Hormonal Long-
Acting Contraceptive
 Intrauterine device, containing
levonorgestrel, for reversible long-term
contraception
 Life-cycle opportunities:
 Small low-dose long-acting (up to 3
years) device:
 Jaydess: successful conclusion
of EU registration
 Skyla: US-launch in Feb. 2013
 Phase III for a long-acting (up to 5
years), low-dose, small contraception
device underway
 2013 sales target: mid-to-high single-
digit % increase
Sales in € million; ∆% Fx adj.
2009 2010 2011 2012
272
218
285
254
313
268
385
292
US Rest of the world
490
539
581
677+9%

2009 2010 2011 2012
Hemophilia Franchise –
Stable Growth
 Global # 2 in hemophilia A treatment
 Competitive development program in
hemophilia underway:
 Phase III with long-acting Factor
VIII (BAY 94-9027)
 Phase III with product from
plasma-free process (BAY 81-
8973)
 2013 sales target: low-single-digit %
increase
250
638
299
705
290
785
332
850
888
1,004
1,075
1,182+5%

Betaseron – Long-term Experience in
Multiple Sclerosis Treatment
 First interferon launched in multiple
sclerosis, introduced in 1993
 Wealth of clinical experience
 Demonstrating excellent efficacy and
tolerability
 21-year long-term follow-up study
demonstrated significant survival
advantage with Betaseron treatment
 2013 sales target: ~10% decline
2009 2010 2011 2012
479
735
473
733
447
670
578
638
1,214 1,206
1,117
1,216+4%

Nexavar –
Our Cornerstone in Oncology
 Approved for kidney cancer (RCC)
and for liver cancer (HCC)
 Only approved drug with overall
survival benefit in HCC
 Positive phase III data in radioactive
iodine refractory differentiated thyroid
cancer (DECISION-trial)
 Phase III trials in:
 Breast cancer
 RCC (adjuvant)
 HCC (adjuvant)
 2013 sales target: mid-single-digit %
increase
2009 2010 2011 2012
154
450
174
531
174
551
204
588
604
705 725
792+4%

Aspirin –
More Than A Century of Growth
 One of the world’s most recognized
brands
 Available as OTC and Rx Aspirin
 Bayer’s #1 product in Emerging
Markets
 Aspirin grew 17% in 2012 in the
Emerging Markets
 Aspirin grew 39% in 2012 in
China
2009 2010 2011 2012
315
400
358
418
404
471
476
494
Rx-Aspirin OTC-Aspirin
715
776
875
970+6%

Driving Pharma Growth in
Emerging Markets

Emerging Markets a Growth Driver for Our
Pharma Business
2012 Pharma Sales Highlights Emerging Economies
2012 sales in € million, ∆% yoy Fx adjusted
Emerging
Economies¹
+7%
Developed
Economies
+2%
64% 36%
Pharma €10,798m; +9% (+4%)
 Net increase of ~600 employees since
end of 2011
 Further investments in marketing &
sales infrastructure
 Exploiting opportunities of established
portfolio
 Development of specialty-medicine
capabilities and expansion of new
product reach

Exploiting Growth Opportunities of
Established Portfolio in Emerging Markets
MI prevention
~65%
~50%
~85%
~40% +12%
+12%
+26%
+39%
+16%
Hypertension
~55%
Diabetes
Product Emerging Market Share Top EM Country / Growth
Antiinfective
2012 sales in € million; ∆% y-o-y Fx adjusted
Contraception
EM: Emerging markets

Aspire to Become the Global
Leader in OTC Pharmaceuticals

Bayer is #2 Player in a Fragmented OTC
Market
*Source: IMS
3.7%
OTC Market 2012 by Player*
J & J Bayer Novartis Sanofi Pfizer GSK
Boehringer I. Reckitt Ben. Taisho Takeda Others
€99.5bn
Growth Strategy
 Maximize brand potential
 Global expansion of key brands
 Exploit our innovation pipeline
 Double proportion of new products‘ sales
until 2015
 Grow in emerging markets
 Increase commercial power
 Bolt-on acquisitions to strengthen
portfolio & regional set-up

Brands Years Old 2012 Sales €m 3-Year CAGR
113 970* 7%
81 197# 12%
78 101 1%
69 196 5%
68 269 12%
40 250 9%
19 323 12%
Strong Consumer Brands Build Equity for
Decades
*Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx)
#Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus

Innovation at OTC – New Product
Development with Aspirin

Maximizing Brand Potential
Through Global Expansion
Brand Sales by Major Region 2012 Expansion Plans
Analgesic
~80% in North America
Wound-healing
~75% in Europe
Anti-fungal
~75% in Europe & LatAm
Vitamins & minerals
~50% in Europe
Pregnancy Supplement
~55% in Asia Pacific

Consumer Insights Drive Brand Innovation
and Growth
Sales in € million
2002 2004 2006 2008 2010 2012
One-A-Day Innovation History
58
112 109
142
167
176 Bayer Innovation includes:
 New claims
 Indications
 Delivery forms
 Line extensions
 New packaging
 New DTC campaigns
 Rx-to-OTC Switch
DTC: Direct-to-consumer
Page 101

 One A Day Vita Craves
Complete adult multivitamin in
great tasting gummy format
2010 2011 2012 2015e
Robust Innovation Pipeline
*sales of new products launched during a 4-year window
Share of Sales from New Products*
 Redoxitos
Recommended children’s vitamin C
daily dose for strengthening immunity
 Canesten Nail Set
Complete 6-7 week fungal nail
infection treatment
 Bepanthen Anti-Stretch Mark
Moisturizing lotion keeping pregnant
women’s skin soft and elastic
~16%
4%
5%
8%
New Product Examples

Emerging Market Growth Strategies
(2013 – 2015)
Country Market Characteristics Plans
China
Brazil
Russia
 #2 global OTC market
 €30bn in size by 2015e
 Expand sales force from 30 cities to >130
cities, covering 75% of OTC market
 Extend geographic footprint by launching
global brands in China
 Fastest growing market
in LATAM
 ~50% of LATAM market
 Expand sales force from 7,000 to 12,000
retail outlets, covering 73% of OTC market
 Accelerate innovation through consumer
insights and portfolio extension
 Retail OTC is the largest
healthcare segment
 Extend portfolio into attractive categories
 Leverage leadership position in pharmacy
chains to drive growth at point of sales

Strategic Acquisitions –
Steigerwald
 Excellent strategic bolt-on entry into fast growing
herbals market, further strengthens Bayer’s
gastrointestinal position (currently #6 globally)
 Excellent expansion potential into emerging markets like
Russia and other Eastern European markets
 Steigerwald generated net sales of €61.3m in 2012
(~90% in Germany)
Iberogast®
 For the treatment of
functional dyspepsia &
irritable bowel syndrome
Laif®
 St John’s wort-based
medicine for treatment
of depression
 #8 OTC product in Germany
 ~69% of 2012 sales
 Strong position in its indication
 ~20% of 2012 sales
Page 104

Continued Growth in Animal
Health and Medical Care

Animal Health –
A Strong Player in an Attractive Market
Sales in € million; ∆% Fx & portfolio adj.
 Global #5 in a growing market
 #3 in companion animal products (CAP)
 #6 in food animal products (FAP)
 Leading parasiticide-portfolio
 New product launches driving growth
 Growth complemented through external
M&A (e.g. Bomac & TEVA Animal Health)
Companion Animal
Products
Food Animal
Products
Sales Split 2012
Animal Health €1,303m; +10% (+4%)
40% 60%
Highlights

Animal Health –
New Products to Strengthen Business
 New benchmark for flea
and tick protection
 Outstanding efficacy
based on combination of
active ingredients
 Up to 8 months protection
due to innovative polymer
matrix technology
 Pradofloxacin, the new
generation fluoroquinolone
 Extended spectrum vs.
previous fluoroquinolones
 Greater potential to limit
selection for resistance
 Convenient formulations
for dogs and cats
 1st combined endopara-
siticide against
roundworm and coccidia
in dogs
 Easy and convenient
once daily oral treatment
 Can be used already
from 2 weeks of age

Well Positioned in Medical Care
Radiology &
Interventional
Diabetes
Care
Sales Split 2012
Medical Care €2,650m; +6% (+2%)
40% 60%
Highlights
Diabetes Care:
 Comprises self testing blood glucose
monitoring devices
 Global #4 in blood glucose meters
Radiology & Interventional:
 Comprises contrast media and media
application devices and catheters for
atherectomy
 Clear global market leader in contrast
media and media application devices

Bayer CropScience

Sales 2012: €8,383m
Insecticides€1,514m
Market position:
Fungicides€1,974m
3Market position:
SeedGrowth€897m
1Market position:
Herbicides €2,356m
4Market position:
Env. Science €680m
1Market position:
Seeds €962m
7Market position:
Page 110
CropScience –
A Leader in Chemical Crop Protection
1
Market positions based on company reportings and Cropnosis estimates
18%
24%
11%
11%
8%
28%

26%
22%
13%
9%
9%
7%
6%
5% Fruits & Vegetables
CerealsOilseeds
Soy
Corn
Cotton
Rice
Sugar Crops
* by major crop groups excluding industrial business and non-agricultural solutions
CropScience Sales 2012*
Other
Fruits, Vegetables and Cereals –
A Major Part of Our Portfolio

Leading the Way in Integrated Crop
Solutions
Integrated Crop Solutions
Chemical
Crop
Protection
Biological
Crop
Protection
Seeds
 Herbicides
 Fungicides
 Insecticides
 SeedGrowth
 Microorganisms
 Microbial
extracts
 Canola, cotton,
rice, vegetables,
soy, wheat
 Conventional
seeds
 GMO seeds
 Traits
 Weed, pest &
disease control
 Stress
tolerance
Better harvest
with improved:
 Yield
 Quality
 Processability
 Sustainability
GMO: Genetically modified organism

Dynamic Growth in
Positive Environment
Page 113

1H 2013 –
CropScience Performance
Crop Protection
+7% (+9%)
Environmental
Science
-5% (-2%)
Seeds
+2% (+1%)
1H 2013 Sales Earnings
Price
+3%
Volume
+4%
Fx
-2%
Portfolio
0%
4,064
1H‘12 1H‘13 1H‘12 1H‘13
1,533
1,705 +11%
1,299
1,483 +14%
Adj.
EBITDA*
Adj.
EBIT*
357
735
Page 114

Herbicides
Fungicides
Seeds
Double-digit growth in NA and APAC;
Liberty and new corn herbicides
Growth in all regions;
Strong start with Fox in Brazil
Growth in Latin America nearly offset by
decline in the US (low pest pressure)
Higher demand in North America, esp.
for our innovative Poncho/Votivo
Lower cotton and canola acreages in
North America; growth with vegetables
Decline of consumer products in Europe
Professional products grew in LAAME
1,647
+9%
1,330
+15%
716
+3%
371
+6%
357
- 2%
735
+1%
Insecticides
Sales in € million; ∆% y-o-y Fx & portfolio adj.
1H 2012 Nominal growth/decline 1H 2013
Seed
Growth
Env.
Science
1H 2013 –
Growth Driven by Herbicides and Fungicides
Page 115

Emerging Economies
25%
CropScience Sales in 1H 2013
Latin
America
Eastern
Europe
Africa &
Middle East
Emerging
Asia³
~460
+9%
~650
+23%
~540
+9%
~150
+1%
20%
USA
+3%
28%
35%
17%
Emerging
Economies¹
+13%
Western
Europe +4%
Others²
+10%
1H 2013 –
Strong Growth in Emerging Economies
Sales in € million, ∆% yoy Fx adjusted

Translating R&D Effectively
into Sales
From to
€
Page 117

Executing Our Strategic Roadmap
Strengthen
Customer Centricity
Lead the Way
in Innovation
Enhance
Crop Protection
 Striving for first- and
best-in-class
solutions
 Exploiting expertise
in seeds, breeding,
and chemical and
biological crop
protection
 Driving commercial
excellence in
marketing and sales
 Connecting partners
in the value chain
through integrated
Go-to-Market
practices
 Improving portfolio
through focused
and integrated
crop solutions
 Increasing
flexibility and
efficiency
Expand
Seeds Business
 Further strengthening
position in
vegetables, rice,
oilseed rape
and cotton
 Extending portfolio
by building up
business in soybean
and wheat

Translating R&D Effectively into New
Product Sales
Page 119
0.02
0.3
0.7
1.1
~1.4
~1.9
2007 2009 2011 2012 2013e 2015e
+60%
Sales from new Crop Protection products
launched since 2006 in €bn
∆% y-o-y, () Fx adj.
 (+19%) - Superior ‘all-in-one’
cereal fungicide with yield-boosting
effect
 herbicide (+35%) -
Excellent weed control in corn and
cereals, also in case of glyphosate
resistance
 (+64%) - Broad-spectrum
insecticide with fast, long-lasting
action
 - New fungicide now
available in several key markets
1H 2013 Highlights

Xpro – New Cereal Fungicide
with Yield-Boosting Effect
 Pyrazole fungicide from a new generation of SDHI* for foliar use in cereals
 Combined formulation of Bixafen and Prothioconazole leading to superior
"all-in-one" cereal fungicide
 Excellent control of key cereal diseases including strobilurin-resistant Septoria
 Boosting yield through long-lasting disease control and positive impact on
plant physiology
 Global peak sales potential of more than €300m
* SDHI: Succinate dehydrogenase inhibitor

Luna – Outstanding Fungicide for Managing
Problematic Crop Diseases
 New SDHI* fungicide for use in foliar application and seed treatment on more
than 70 horticultural and industrial crops
 Control for a broad range of problematic diseases including Alternaria blight,
scab, powdery mildew and white mold
 Benefits for the food chain through better storability and longer shelf-life of
harvested produce
 Available since 2012 planting season in several key markets
 Global peak sales potential of more than €250m
* SDHI: Succinate dehydrogenase inhibitor

Adengo Family – Highly Effective Weed
Control in Corn
 Thiencarbazone-methyl is a new sulfonyl-amino-
carbonyl-triazolinone (SACT) herbicide
 Residual and foliar herbicide family that combats
annual grasses and broad leaved weeds in corn
 Additional crop selectivity in combination with
HPPD inhibitor Isoxaflutole and safener
Cyprosulfamide
 Offering flexibility in application timing
(pre- to early post-emergence)
 Low use rates
 Launched in first key markets in 2009

Sustainable Alternatives to Fight Glyphosate
Weed Resistance
“Diversity is the Future” -
The Bayer CropScience
initiative against weed
resistance
HPPD: Hydroxyphenyl-pyruvate dioxygenase
MGI: Mesotrione, Glufosinate-ammonium and Isoxaflutole
 Weed resistance to glyphosate increasingly impacting crop production; almost 50% of
U.S. growers are affected
 Our LibertyLink is currently the only non-selective herbicide solution to glyphosate
resistant weeds
 Construction of new US production plant for Liberty to more than double global capacity
 We are committed to develop new and more sustainable weed management solutions
 Innovation with new mode of action, HPPD herbicide tolerance, in soy and cotton
 MGI triple stack herbicide-tolerance soybean trait submitted for approval
 Highly effective pre-emergent and selective herbicide portfolio launched
Page 123

303
~520
~620
~660
600
2012 2013e 2014e 2015e 2016e
 Increasing demand for innovative and
sustainable agricultural solutions
 Construction of U.S. production plant1
for herbicide glufosinate-ammonium
 Expanding seeds infrastructure for
soybean and wheat
 Expanding and modernizing R&D
facilities
 CAPEX expansion to €2.4bn
for 2013 - 2016
Stepping Up Investment Plans for Capacity
Expansion at CropScience
Capital Expenditures (PPE only, in €m)
1About €380m investment,
start of production expected Q4 2015

Further Growth Opportunities
in Biologics
 Biologics are products derived from naturally-occurring living organisms or materials
from plants or microorganisms
 The market potential for Biologics is expected to triple from $1.2bn in 2010 to around
$4bn in 2020
 AgraQuest acquired in Q3 2012 for €375m including milestone payments.
Leading global provider of innovative biological pest management solutions based
on natural microorganisms
 Prophyta acquired in Q1 2013, a provider of well-established products, e.g. nematicide
BioAct
 Acquisitions strengthen strategically important fruit and vegetables business
 We aim to become the world leader in integrated crop solutions

Customer Centricity Along the Entire
Value Chain
Bayer CropScience
Our offers Growers
Distributors/
seedcompanies
Retailers
Advisors
Providing Seed-to-Shelf Solutions
Traders
Foodprocessors
Foodretailers
Consumers
 Food chain partnerships covering most of the main fruit & vegetable crops
 Premium seeds and effective crop protection products to maximize yield
 Consistent and high harvest quality for efficient food processing
 Meeting highest food safety standards
 Better product quality for the consumer
Page 126

Best-Practice Examples of our New
Go-To-Market Approach
Approach Achievement
Food chain partnerships in grapes in Brazil,
Chile, Italy and India
 Market share in grapes in Brazil +5 pp
 ~60% market share in table grapes in
Chile (largest exporter worldwide)
"On demand" seed treatment system and a
global network of 10 SeedGrowth Centers
 2012 SeedGrowth sales* +17%
 Further roll-out of SeedGrowth franchise
in Asia Pacific (sales in China* +30%)
Combine innovative technology of Movento
insecticide with additional service offerings
 2012 Movento sales* +49%
BayDir service in Germany offers tailored
and immediate information for farmers
through Internet and mobile phone apps
 Further strengthened our position in the
German market
* Sales ∆% y-o-y Fx adj.
Page 127

Strong Integrated Pipeline with Promising
Launches over the Next Four Years*
Crop Protection
Life Cycle Management
Seeds
Cotton
Canola
Wheat
Soybean
Rice
2013
~110 launches in vegetables &
broad acre crops
Roundup Ready
Hybrid
Canola
Fungicide
Serenade Optimum
Bayer Oilseed
Mustard
Hybrids
Seed Varieties
2014
Canola Yield
Increase
Numerous launches in
vegetables & broad acre crops
Verango / Velum
Insecticide
Insect Resistant
Hybrid Rice
TwinLink +
GlyTol Cotton
Seed Varieties
20162015
*estimated and subject to regulatory approval
2 joint project with MS TechnologiesPage 128
Constant Life Cycle Management through new formulations and mixtures that also includes Biologics
Disease Resistant
+ Salinity Tolerant
Hybrid Rice
Insect + Disease
Resistant
Hybrid Rice
Improved Canola
Oil Profile
Dual Herbicide Tol.
+ Novel Insect
Resistant Cotton
Insecticide
Biologics
Seed Varieties
GlyTol + HPPD
Tolerant
Soybeans2
Biologics
Fungicide
Bayer
Wheat Seed
LibertyLink +
Roudup Ready
Hybrid Canola
Council
Herbicide
Disease Resistant +
Submergence Tol.
Hybrid Rice
Seed Varieties
Sivanto
Insecticide

Sivanto – Innovative and User-friendly
Insecticide against sucking pests
 Active ingredient: flupyradifurone (novel insecticide class butenolides)
 Control of sucking pests such as aphids, hoppers and whiteflies
 Intended for use in fruits, vegetables, and broad acre crops
 Favorable safety profile
 Launch planned 2015*
* first registrations for foliar application; SeedGrowth use
planned to follow subsequentlyPage 129

Biological Crop Protection for Mite Control
 Mites can significantly reduce
yields and quality
 Leading to rejection of produce
along the value chain and
lower sales
 Microbial acaricide with new
mode of action
 Season-long effectiveness:
curative, eradicant, protective
 Registration expected in the U.S.
in 2016*
* subject to regulatory approval
Two-spotted spider mite under scanning electron microscope (SEM)

Restriction of Neonicotinoids Use in the EU -
Implications
 The European Commission has temporarily restricted (for 2 years) the use of certain
neonicotinoids (including clothianidin and imidacloprid) in summer cereals and bee-
attractive crops, including corn, oilseed rape and sunflower
 Neonicotinoid-based products are safe for bees, when used according to label
instructions; registered in > 100 countries world-wide in a broad range of crops
 Affected business of clothianidin and imidacloprid ~1% of total CropScience sales, gross
 Net sales impact significantly less, as alternative products partly compensate
 Restrictions will apply from Sept 30 (use of treated seeds until Dec 1, 2013) the latest
 Restrictions expected to result in crop yield losses and loss of competitiveness for
European agriculture
 U.S., Canadian and Brazilian regulatory agencies recognize that there are numerous
factors affecting honey bee health incl. diseases, parasitic mites, habitat loss, nutritional
deficiencies and hive management practices

Protecting Pollinators and Improving
Honey Bee Health
 Varroa mites transmit viruses,
bacteria and other pathogens
to bees
 One of the most damaging pests
to honey bees in Europe and
North America
Interdisciplinary approach
 Varroa Gate mechanical and
chemical barrier to protect colonies
from re-infestation
 Collaboration with Bayer HealthCare
Animal Health
 Launch planned for 2017*
* subject to regulatory approval

Extending the Seeds Footprint
Build up a proprietary soybean
seed business
Build up a global wheat seed business
 LibertyLink herbicide tolerance technology
broadly outlicensed
 Acquisition of Hornbeck Seed Company
in the US
 Bayer soybean seed launched in 2012
 Presence in soybean market in Brazil
stepped up with bolt-on acquisitions
 Broad germplasm pool and promising trait
pipeline
 Next-generation trait technology licensed
from Monsanto
 Significant investment into R&D of new
wheat varieties and traits
 Focus on productivity, stress tolerance,
nutrient uptake
 First new varieties expected by 2015
in Europe
 Several agreements closed with wheat
players to establish a broad germplasm pool
 Seven wheat breeding stations set-up in
Europe, US, Australia
Page 133

Acquisitions in Latin America Broaden
our Portfolio in Soybean Seed
 Building up proprietary seed business
with high quality germplasm pool
 Establishing best-in-class
breeding platform
 Developing modern, resistance-breaking
solutions to key soybean problems
 Proprietary & licensed trait platform
 Leveraging the potential of our trait
platform through out-licensing
 Integrated business model combining
seeds & crop protection
 Launch of Bayer soybean brand
Credenz planned late 2014
2011 Soytech
soybean seed
company
Goiânia, Goiás
2013 Wehrtec
soybean seed
company
Cristalina, Goiás
2013 Agropastoril
soybean germplasm
bank
Cascaval, Paraná
2010 CVR
plant breeding
Rio Verde, Goiás
Main soybean research center
• US: Morrisville, NC
Network of soybean breeding stations
• US: Champaign, IL / DeWitt, AR / Pikeville, NC
• Puerto Rico: Sabana Grande
• Brazil: Porto Nacional, TO / Cristalina, GO / Rio Verde, GO /
Sinop, MT / Londrina, PR
• Argentina: Tucuman, TU / Chacabuco, BA

Access to Next-Generation and Enabling
Trait Technologies for Soybeans
 Cross-licensing agreement with Monsanto entered in April 2013
 Monsanto will provide Bayer with royalty-bearing licenses to specified trait technologies
in soybeans, with stacking-rights under certain conditions
 Licensed traits fit nicely with our own technology such as LibertyLink
 Ability to offer additional pest control options and an all-inclusive weed resistance
package in soybeans
 Bayer will grant Monsanto licenses to evaluate certain enabling technologies
Weed
control
Pest
control
 Genuity® Roundup Ready 2 Yield®: glyphosate tolerance
 Genuity® Roundup Ready 2 Xtend™: glyphosate & dicamba tolerance
 Regions: United States and Canada
 Intacta RR2 PRO™: first‐ever insect-protected trait in soybeans,
providing control of lepidopteran pests
 Regions: Brazil, with an option to a royalty-bearing license in other
Latin-American countries in the future
Genuity® Roundup Ready 2 Yield®, Genuity® Roundup Ready 2 Xtend™
and Intacta RR2 PRO™ are trademarks of MonsantoPage 135

Strategic Progress Achieved
Enhance
Crop Protection
Strengthen
Customer
Centricity
Lead the Way
in Innovation
Expand Seeds
Business
● €1.1bn sales in 2012 with products launched since 2006
● All WHO class I insecticides removed from our portfolio
● Expansion of Biologics
● Increased grower orientation
● Improved channel management practices
● Broadened food chain partnership business model
● Pipeline Peak Sales Potential*  €4bn
● Increased investment in Seeds R&D
● Innovating at the interface between chemistry and biology
● Strengthened positions in cotton, canola and rice
● Increased investments in soybean, wheat and vegetables
● Development of innovative traits
* from products launched between 2011-2016
Page 136

Targeting Above Market Growth
at Benchmark Profitability
2012 CAGR 2015e
Page 137

Global Trends in Agriculture
GLOBAL FOOD
PRODUCTION
CLIMATE CHANGE
-322 kg rice per hectare
Yields under pressure
+1°C
FARMLAND PER CAPITA (ha)
1950 : 0.52
2010 : 0.20
2050 : 0.15
INSUFFICIENT STORAGE
Up to 40% of fruit
and vegetables
lost in India
Equivalent to the annual
consumption in UK
CHANGING CONSUMPTION
PATTERNS
Increasing demand for protein
Need for a sustainable
productivity increase
By 2050
+70%
HUNGER
1 in 8 goes hungry today
POPULATION GROWTH
7 billion people
on the planet today
9.6 billion people in 2050

Seed and Crop Protection Market Expected
to Grow  5% in 2013
 High price levels for agricultural commodities
 Slightly weaker but nonetheless positive market development overall
 Growth coming mainly from North and Latin American followed by
Eastern European markets
 Asia / Pacific: cereals, rice and specialty crops fueling market growth
Page 139

Promising 2013 Outlook
 We expect that business growth will outpace the market
 Sales advancing by a high-single-digit percentage on a currency- and
portfolio-adjusted basis toward €9 billion
 We also plan to raise EBITDA before special items by a high-single-digit
percentage
Assuming Fx rates of H1 2013

Bayer MaterialScience

MaterialScience –
Leading Positions in All Segments
* aliph. isocyanates
MaterialScience €11,491m
Polyurethanes
€5,987m
 #1-2; approx. 20-24% market share
52%
6%
25%
17%
Sales in € million
Polycarbonates
€2,819m
 #1; approx. 27% market share
Coatings, Adhesives, Specialties
€1,972m
 #1; >40% market share*
Industrial Operations
€714m
Sales Split by Segment 2012
Page 142

MaterialScience –
Global Production Network
Headquarter
Major Production Sites
Downstream Businesses
Position*
Americas
# 1 # 2 # 1
PUR PCS CAS
Position*
EMEA#
*Market share based on estimated sales following self-assessment
# Europe, Middle East & Africa
# 1 # 1 # 1
PUR PCS CAS
Position*
Asia/Pacific
# 2-3 # 1-2 # 1
PUR PCS CAS

MaterialScience –
Sales By Key Customer Industries
Others
(sports, leisure, footwear
packaging, medical, etc.)
Furniture/ Wood
AutomotiveChemicals
Electro/
Electronics
Construction
17%
28%
19%
20%
8%
20%
16%
Bayer MaterialScience sales by industry in 2012
Page 144

MaterialScience as an Integrated Solution
Provider
Megatrends offer business opportunities worldwide, with the emerging
economies at the forefront
Ongoing
urbanization
New and
improved
transportation
systems
Need for
better
energy
efficiency
Higher
living
standards
Proportion of city
dwellers expected to
increase from 50%
in 2010 to 70% in
2050*
Lightweight cars
New energy vehicle
development
High-speed rail trans-
portation networks
EcoConstruction with
high thermal insulation
standards
Cold-chain efficiency
Over 40m people
enter the middle class
every year
Improved housing
standards
Source: Steria, The Future Report 2012

Weak Performance in
Challenging Environment

1H 2013 –
Operating Performance
25%
3,015
1,327
Polycarbonates
-7% (-7%)
Polyurethanes
+2% (+4%)
Adjusted
EBITDA*
* before special items
Adjusted
EBIT*
1H 2013 Sales Earnings
960
348
In € million; ∆% y-o-y, () Fx & portfolio adj.
Coatings,
Adhesives,
Specialties -5% (-4%)
Industrial
Operations
-3% (-2%)
Price
+2%
Volume
-2%
Fx
-1%
Portfolio
0%
MaterialScience €5,650m; -2% (-1%)
Page 147
1H‘12 1H‘13 1H‘12 1H‘13
662
478 -28%
344
155 -55%

1H 2013 –
Regional Sales Development
Emerging Economies1H 2013 Sales
MaterialScience €5,650m; -1%
Latin
America
Eastern
Europe
Africa &
Middle East
Emerging
Asia³
~1,320
-2%
~450
+5%
~330
+2%
~275
-5%
USA
+4%
36%
42%
Emerging
Economies¹
-1%
4%
Others²
+8%
20%
33%
42%
5%
Page 148
Western
Europe -4%

Aspire to Earn a Premium Over
Cost of Capital

Cash Generation in Excess of Own
Investment Need…
2002 and 2003 as reported in 2004 excluding acquisitions or divestments
In € million
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
902
1,108
464
1,113
332
498
715
1,388
690
1,281
870
672
1,147
782
504 498
565
775763
849
Page 150
621
735
CapEx (cash-relevant)
Net Cash Flow
~€3.6bn Free Operating Cash Flow in 11 years
Free Operating Cash Flow
206 649
166
673
592
277
110
345
265 210
114

…But Selling Price Increases & Savings Not
Sufficient to Protect Earnings
 Market growth trends intact, key
products with mid-single digit volume
growth
 High raw material prices and
significant capacity additions led to
global overcapacities and margin
pressure
 Going forward demand & supply
balance expected to improve
 Anticipated margin improvement
supported by fresh savings from new
2010 2011 2012
Sales Adj. EBITDARaw Mat. & Energy Costs CFROI
In € bn
10.2
10.8
11.5
5.4
6.2
6.6
1.4 1.2 1.3
6% 6%
8%

Higher Asset Utilization & Efficiency
Measures Are Driving Performance
2012 Target 2013* Aspiration 2015
*Assuming Fx rates of H1 2013
#after reproduction
 Sales +2.9% to €11.5bn
(volumes +2%)
 Adj. EBITDA +8% to
€1,262m
 CFROI# 5.7% < WACC
7.1%
 Sales: not quite reach
prior-year figure
 Adj. EBITDA: below prior-
year figure
 Q3‘2013 vs Q2‘2013:
Sales and adj. EBITDA
to increase
 Grow business (volume)
above global GDP
 Defend market leading
positions in PCS and PUR
 Realize 150 bp margin
contribution through new
 Optimize asset structure
in Germany
 CFROI# > WACC

Profitability Improvement Through New
Efficiency Initiative Until 2015
 New efficiency initiative improves cost structure and increases adjusted EBITDA
margin by 150bp
 Initiative comprises more than 100 measures across the entire value chain
Examples
Business Units  Consolidation of system houses
 Pricing excellence programs
Organization  Optimization of regional structures (e.g. Canada & US)
Production  Further initiatives to improve asset productivity (e.g. maintenance
schedules, engineering setup)
Supply Chain  Optimization of logistics services
Selling &
Administration
 Further reduce costs by leveraging established global ERP
platform and standardized processes
ERP: enterprise resource planning

Process Technology Advances Lower Cost &
Save Energy
ProcessBenefits*Status
TDI Gas Phase
Phosgenation
Adiabatic Aniline
Production
ODC Technology for
Chlorine Production
*Compared with conventional technology
ODC: Oxygen depolarized cathode
 Uses up to 60% less
energy
 Requires 80% less solvent
 CapEx reduced by 20%
 Uses 25% less energy
 20% less CO2 emissions
 CapEx reduced by 30%
 Uses 30% less energy
 Reduces indirect CO2
emissions
 World-scale facility
since 2011 in Shanghai,
China
 Technology to be used in
new TDI plant in Dormagen
 Pilot plant in Antwerp,
Belgium
 Plant in Shanghai since
2010
 Demo facility in Krefeld-
Uerdingen
 External marketing
planned from 2013
Page 154

Focus on Capital Discipline
DepreciationCapEx (PPE only)
813
462
600
460
527
599
2008 2010 2012 2013e
In € million
CapEx vs Depreciation CapEx Strategy
● Investment focus on utilization
improvement
● Investment in efficiency is the basis
for future profitable growth
● CapEx on depreciation level for 2013
and the foreseeable future

Capitalizing on Global
Megatrends
1990 2000 2020e 2050e
5.3
6.1
7.7
9.2 billion people

Our High-tech Materials Meet Key Customer
Industry Needs
Poly-
carbonates
Poly-
urethanes
& CAS
 Low weight for better energy efficiency in transportation
 High mechanical strength enables product durability
 Transparency for optical applications and architectural glazing
 High heat resistance and reliable electrical insulation properties
 Excellent design flexibility that goes beyond that of glass
 Outstanding thermal insulation properties
 Versatility allowing full spectrum of flexible to rigid foam applications
 Excellent abrasion resistance and rebound resilience
 Durability for reliable protective coatings
AutomotiveConstruction Electro / Electronics
CAS: Coatings, Adhesives, Specialties

Polyurethane-based Insulation
for Residential & Commercial Buildings
PUR Isoboards for Thermal Insulation
Growth drivers
 EU: From 2020 on, new
buildings have to be
constructed as “nearly zero-
energy buildings”
 US: New standard requires
30% less energy use for
renovated homes and
commercial buildings
 1 kg polyurethane saves 360 to
755 kg CO2 emissions*
 PUR in construction industry in
2012: approx. €5.7bn,
estimated average growth rate
of ~8% p.a.
*Additional insulation, savings over entire product life-cycle of 50 years, including
production and end-of-life stages; PUR: polyurethane
 External Thermal Insulation Composite
Systems (ETICS) save >25% energy
compared with other insulation materials
 Joint solution development with key industry
players to fulfill high industry requirements
PUR Metal Sandwich Panels
 Prefabricated and mainly applied for industrial
and commercial buildings as well as cold
storage
 Easy handling and fast site assembly
Page 158

Polyurethane-based Insulation
in Cold Chain
Growth drivers
 Globally more stringent energy
saving regulations
 Increasing demand for trans-
porting temperature sensitive
goods
 Increasing standard of living in
emerging markets triggers
continuously growing demand for
appliances
 PUR in refrigerator industry
2012: approx. €2.6bn, estimated
average growth rate of ~6% p.a.
Refrigerators
 Refrigeration accounts on average for 20% of
a household’s electricity consumption
 Replacing all old refrigerators with A++
appliances could cut annual CO2 emissions in
the EU by 22 million metric tons
 PUR insulation increased energy efficiency of
refrigerators by 65% from 1950-2005
 BMS’s innovative Baytherm®
Microcell foam:
 Reduces pore size of foam up to 40%
 Reduces thermal conductivity up to 10%
PUR: polyurethane

Increased Energy Efficiency in Cars Through
Polycarbonates
Growth drivers
Polycarbonates
 Heat stability and optical quality enable new
LED-based lighting systems
 Flame-retardant polycarbonate blends protect
batteries used in future cars with hybrid
engines
 Car body parts made from polycarbonate
blends reduce weight
 Automotive glazing out of polycarbonate
combines high weight saving potential with
outstanding thermal insulation
 Broad global political initiatives
promoting e-mobility
 Increasing use of electrical
devices requires flame
retardancy of plastics
 Polycarbonate glazing offers a
weight advantage of 30-50%
compared to real glass
 81m light vehicles* produced
globally in 2012, estimated
average growth rate of 5-6%
p.a.
*includes cars and light commercial vehicles up to a weight of 6t
Page 160

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