Meet management 2014-06-05_ny_investor_handout_web_slideshare

Meet Management
Conference
New York, June 5, 2014
Marijn Dekkers, CEO Bayer

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 • June 2014Page 2

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
• Bayer Investor Presentation • Meet Management • June 2014

Our Business Portfolio –
Leading in Its Markets
Break-down excluding reconciliation
Sales 2013: €40.2bn
CropScience
Chemical crop protection & biologicals
global #2, seeds & traits
€8.8bn
MaterialScience
Polyurethanes and polycarbonates,
global #1/2
€11.2bn
HealthCare
Pharmaceuticals €11.2bn,
leading positions in core indications
Consumer Health €7.7bn,
OTC #2, blood glucose meters #3, Animal
Health #5, contrast media #1
€18.9bn
23%
29%
48%

We Generate Almost 90 Percent of our
Earnings in the Life Sciences Businesses
Page 3
*EBITDA before special items
23%
29%
45%
88% 12%
Sales 2013 Adj. EBITDA 2013*
Human
Health
3%
Breakdown excluding Reconciliation
Material
Science
Plant Health
Animal
Health
Life
Sciences
Material
Science

2010-2013 –
A Period of Significant Success
 Delivered growth and performance
 Unprecedented R&D productivity
 Pharma launch product sales ahead of expectations
 Executing successfully our OTC growth strategy
 CropScience customer-centric strategy bearing fruit
 Capital discipline at MaterialScience

2010-2013 – A Period of Significant Progress
Page 5
2010 2011 2012 2013
35.1
36.5
39.7 40.2
7.1
7.6
8.3 8.4
Sales 5%
Core EPS 10%
Adj. EBITDA 6%
4.19
4.83
5.30
5.61
Sales and adjusted EBITDA in € billion, core EPS in €
CAGR 2010-2013

EBIT
in € million
+18%
2,096
1,771
Sales
in € million
% currency & portfolio adj.
+8%
10,55510,266
EBITDA
adjusted*
in € million
+12%
2,738
2,453
Core EPS
in €
+15%
1.95
1.70
*before special items
Q1’14Q1’13 Q1’14Q1’13 Q1’14Q1’13 Q1’14Q1’13
Strong Momentum Continued in Q1 2014
Despite Significant Currency Headwind

FY 2014 Group Guidance Maintained –
Targeting Further Sales and Earnings Growth
Page 7
2013 2014E*
Sales €40.2bn
~5% to
~€41-42bn
(neg. FX effect approx. -2%)
adj. EBITDA €8.4bn
low- to mid-single-
digit % increase
core EPS €5.61
mid-single-digit %
increase
Sales ∆ Fx and portfolio adjusted, EBITDA before special items
*Assuming average Fx rates of Q4’13 (USD 1.36)
Outlook depends on specific planning assumptions as detailed in the Annual Report• Bayer Investor Presentation • Meet Management • June 2014

2013 Sales CAGR 2016e
Pharma: Maximize Value of
Launch Products

24 Successful Phase III Clinical Trials
at Pharma since 2010
Page 9
 Various indications incl. treatment of deep vein thrombosis/pulmonary
embolism, stroke prevention in atrial fibrillation and secondary prevention
of acute coronary syndrome
 Wet age-related macular degeneration, diabetic macular edema, myopic
choroidal neovascularization and central retinal vein occlusion
 Metastatic colorectal cancer and metastatic gastrointestinal stromal tumors
 Metastatic castration-resistant prostate cancer with symptomatic bone
metastases
 Pulmonary arterial hypertension and chronic thromboembolic
pulmonary hypertension
 Radioactive iodine refractory differentiated thyroid cancer
 Prophylaxis in hemophilia A: Site-specific PEGylated Factor VIII with
5- or 7-days dosing intervals
BAY 94-9027
Major examples

Launch Products Drive Growth at Pharma
Sales in € billion; ∆% Fx & portf. adjusted
Pharma Sales / Launch Products Launch Products 2013
2010 2011 2012 2013
10.0 1.5
25%
949
197
333
3
41
Sales in € million
9.9
10.8
11.2
+1%
+4%
+9%

Launch Products Expected to Contribute
~€2.8bn to Pharma Sales in 2014
 Executing >100 launch events* in
2014
 Continuous R&D investments in
life-cycle management
 Increased marketing and sales
investments in emerging markets
 Incremental marketing and R&D
investments of €0.5bn in 2014e
* new indications and new countries
Page 11

Pharma – Peak Sales Potential of Launch
Products was Raised in February to ≥€7.5bn
 Continued successful launch exe-
cution and life cycle management
 Unchanged
 Unchanged
 Unchanged
~€3.5bn
≥€1.5bn
≥€1bn
≥€1bn
≥€0.5bn
>€2bn
≥€1bn
Old Current

Two Recent Steps Forward for Bayer’s
Pharma Business
Acquisition of
Algeta
Strategic Pharma
sGC Collaboration
with Merck
 Full control over Xofigo
 Comprehensive life-cycle management program,
including studies in earlier settings of prostate
cancer, combination studies and other tumors
 Complementing Bayer’s sGC franchise, including
Adempas, with Merck’s cardiovascular capabilities
 Leverage joint development capability to fully explore
broad potential of sGCs
 Building Bayer’s US presence in specialty pharma
while leveraging Merck’s US strength
Page 13

Pharma – Maximizing
the Value of Launch Products
Page 14
2013
Guidance
2014
Aspiration
2016
Sales Increase €11.2bn High-single digit %
8% CAGR
Adj. EBITDA Increase €3.5bn Low- to mid-single digit %
(neg. FX effect approx. -€150m)
Adj. EBITDA Margin 31.2% Level with prior year ≥33%
Assuming average FX rates of Q4‘13 (USD 1.36)
Sales ∆ % Fx & portf. adjusted, margin = EBITDA before special items to sales

Aspire to Become the Leading
OTC Company

 Portfolio of some of the world’s most
recognized brands
 Outperforming market growth in past
7 out of 8 years
 Successful expansion in EM focus
markets, China, Brazil, and Russia
 Selected bolt-on acquisitions in key
countries: Steigerwald, Germany &
Dihon, China
 Acquisition of Merck’s Consumer
Care business – a major step
towards OTC leadership
3.4
3.5
3.9 3.9
2010 2011 2012 2013
+5%
+7%
+6%
Consumer Care sales in € billion; ∆% Fx & portfolio adj.
*planned acquisition, closing expected in H2 2014
Successfully Executing OTC Growth Strategy

Acquisition of Merck’s Consumer Care
Business Makes us #2 Globally and #1 in US
Highlights
$14.2bn investment, all cash, fully
debt financed
Complementary portfolio offering scale
in key categories and optimized
geographic footprint
Full trademark ownership for Claritin
Market Positioning 2013*
*Pro-forma OTC sales 2013; after allowing for the Novartis/Glaxo deal and Bayer/Merck transaction;
CC: Consumer Care
in € billion

Combination Offers Significant Synergy
Potential
Cost synergies of ~$200m p.a. by 2017
Tax benefits from year 1
 Asset purchase with significant future tax savings
 Savings in marketing costs
 Savings in COGS, administration
Step-up of EBITDA margin pre-special items at Consumer Care
by ~1pp and core EPS accretion of 2% already in the first year
Revenue synergies of already ~$400m by 2017
 Incremental US sales
 Realize brand penetration opportunities ex-US
Revenue
Cost
Tax

CropScience: Further Growth at
Benchmark Profitability

Delivering Growth And Performance at
CropScience
6.8
7.3
8.4
8.8
2010 2011 2012 2013
 2013 – the 3rd year in a row
delivering strong sales growth at
record margin
 New product sales 2013 up 33% at
€1.5bn*
 Strong start to 2014 season with
sales up 12%
Sales in € billion, ∆% Fx & portf. adjusted,
Adj. EBITDA margin in %
19.0
24.2
25.5
22.8
+9%
+12%
Page 20 • Bayer Investor Presentation • Meet Management • June 2014
Customer-centric strategy
bearing fruit
*Sales with Crop Protection products launched since 2006
+9%

Significant Contribution from New Crop
Protection Products
*Sales with Crop Protection products launched since 2006
1.1
1.5
1.8
2.6
2012 2013 2014e 2016e
+33%
Sales from new Crop Protection products
launched since 2006 in €bn
∆% y-o-y, () Fx adj.
Q1
0.6
 (+16%) - Superior ‘all-in-one’
cereal fungicide with yield-boosting
effect
 herbicide (+14%) -
Excellent weed control in corn and
cereals, also in case of glyphosate
resistance
 (+75%) - Broad-spectrum
insecticide with fast, long-lasting
action
 (+112%) - New fungicide now
available in several key markets
Q1 2014 Highlights

Significant Investments in our
Growth Platforms
BiologicalsSeeds
 >€300m R&D investments p.a. to
support leadership positions in cotton
& oilseed and to develop position in
soybean and wheat
 Further selected acquisitions to
strengthen portfolio and regional
setup, esp. in Latin America
 Launch of first soybean brand
Credenz (2014e)
 Launch of first wheat variety
(2015e)
 Successful market entry with nematode
seed treatment Poncho/Votivo
(sales 2013: ~€150m)
 Acquisition of AgraQuest, global provider
of innovative biological pest management
solutions
 Acquisition of Prophyta, a provider of
well-established products, e.g. nematicide
BioAct
 Acquisition of Biagro* adds nitrogen
inoculants & plant health promoters
*Subject to regulatory approvals

CropScience – Above Market Growth at
Page 23
2013
Guidance
2014
Aspiration
2016
Sales Increase €8.8bn Mid- to high-single-digit %
6% CAGR
Adj. EBITDA Increase €2.2bn Low-single-digit %
Adj. EBITDA Margin 25.5% - 24-25%

MaterialScience: Improve
Returns

Macro-Economic Environment for
MaterialScience Likely to Improve
 Oil price expected to stabilize in
2014 (budget of Ø $110 per bbl*)
 Supply & demand balances of key
products improving with:
 Long-term demand drivers
intact
 Limited net new capacity to
come on stream
21%
18%
27%
19%
Automotive
(+4%)
Electro /
Electronic
(+6%)
Construction
(+4%)
Furniture
(+4%)
Others
(incl.
Chemicals)
15%
Sales by industry 2013 and expected 2014 growth
Key Customer Industries Outlook Additional Key Performance Drivers
*Ø 2013: $110 per bbl

Q1 2014 – MaterialScience:
Demand Led Growth
Sales Earnings
**CAS: Coatings, Adhesives, Specialties;
*** IO: Industrial Operations
CAS**
0% (+7%)
In € million, ∆% yoy, () = Fx & portf. adjusted
*before special items;
MaterialScience €2,803m; +1% (+5%)
Price
-3%
Volume
+8%
Fx
-3%
Portfolio
-1%
1,510659
IO***
-6% (-5%)
Q1‘13 Q1‘14 Q1‘13 Q1‘14
Adj.
EBITDA*
Adj.
EBIT*
204
366 +79%
43
221
469
165
Polyurethanes
+3% (+6%)
Polycarbonates
-1% (+2%)
>100%

MaterialScience – Asset Utilization and
Efficiency Measures to Drive Cash Returns
2013
Guidance
2014
Aspiration
2016
Sales Increase €11.2bn Mid-single-digit %
Volume growth
> global GDP
Adj. EBITDA Increase €1.1bn Increase
-
CFROI vs. WACC 5.5% < 6.9% - CFROI > WACC

Bayer –
Optimistic About Future Developments
Peak sales potential of new pharma products of ≥€7.5bn
Track record of performance:
Core EPS with 10% CAGR since 2010
Successful start to 2014 – full-year 2014 group guidance
maintained
Page 28
Successfully executing on OTC growth strategy

Appendix

EBIT
in € million
+26%
4,934
3,928
Sales
in € million
% currency & portfolio adj.
+5%
40,15739,741
EBITDA
adjusted*
in € million
+1%
8,4018,280
Core EPS
in €
+6%
5.61
5.30
FY’13FY’12 FY’13FY’12 FY’13FY’12 FY’13FY’12
FY 2013 – Encouraging Performance
Driven by Life Sciences

FY 2013 –
Regional Performance
Page 31
Africa &
Middle East
Eastern
Europe
Emerging Economies
Emerging
Economies¹
+7%
Others²
+10%
USA
+4%
Western Europe
+2%
2013 Group Sales by Region
Group €40,157m; +5%
~5,100
+15%~5,800
+4%
~1,700
-1%~2,500
+7%
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
38%
10%
31%
21%
Latin
America
Emerging
Asia³

FY 2013 –
HealthCare
Page 32
2013 Sales Earnings
Pharma
+4% (+9%)
Consumer
Health
-1% (+3%)
36%
HealthCare €18,924m; +2% (+7%)
11,1887,736
Price
+1%
Volume
+6%
Fx
-6%
Portfolio
+1%
FY‘12 FY‘13 FY‘12 FY‘13
3,232
3,490
1,887 1,844
+8%
-2%
5,119
5,334 +4%
1,460 -3%
3,787
3,973 +5%
2,327
1,421
Adj.
EBITDA*
Adj.
EBIT*
2,552 +10%

FY 2013 –
CropScience
Page 33
Crop Protection
+7% (+11%)
Environmental
Science
-4% (+1%)
Seeds
+1% (+1%)
2013 Sales Earnings
CropScience €8,819m; +5% (+9%)
Price
+3%
Volume
+7%
Fx
-5%
Portfolio
+1%
7,194
FY‘12 FY‘13 FY‘12 FY‘13
2,025
2,248 +11%
1,543
1,801 +17%
Adj.
EBITDA*
Adj.
EBIT*
651
974

FY 2013 –
MaterialScience
Page 34
2013 Sales Earnings
MaterialScience €11,238m; -2% (0%)
Price
0%
Volume
+1%
Fx
-2%
Portfolio
0%
6,054
FY‘12 FY‘13 FY‘12 FY‘13
Adj.
EBITDA*
Adj.
EBIT*
1,263
1,072 -15%
613
429 -30%
Polycarbonates
-6% (-5%)
CAS**
-6% (-2%)
2,640
IO***
-4% (-4%)
1,863
681
Polyurethanes
+1% (+4%)
**CAS: Coatings, Adhesives, Specialties;
*** IO: Industrial Operations
*before special items;

FY 2013 –
Cash Flow And Net Debt Development
Page 35
-€0.3bn 6.7
GCF oFCF
5,832
Invest-
ments
2,157 3,014
∆
y-o-y +28% +16%
NCF
5,171
+14% +12%
Dec 31, 2012 Dec 31, 2013
7.0
FY 2013 Cash Flow Net Debt Development
Cash Flow in € million, Net Debt in € billion

On Our Way to OTC Leadership
Investor Handout – Meet Management
Acquisition of Merck & Co.’s
Consumer Care Business
June 2014 – New York

Evolution of Bayer Consumer Care’s
OTC Business
2008
Acquisition of OTC brand
portfolio from Sagmel
(CEE) and Topsun (China)
1999
Aspirin trademark
centenary-worldwide
sales > €500m
1899
ASPIRIN introduced
as an over-the-counter
(OTC) medicine
1994
Consumer Care business group
created by the acquisition of North
American OTC business of Sterling;
Acquisition of the “Bayer Cross”
Trademark in USA
2005
Acquisition of Roche
Consumer Health
2013
Aspirin trademark sales
of >€900m
Acquisition of
Steigerwald (Germany)
2014
Proposed acquisition of Merck’s
Consumer Care business (US)
Transaction agreement signed with
Dihon Pharmaceutical Group (China)

Growth Strategy
 Maximize brand potential
 Global expansion of key brands
 Exploit our innovation pipeline
 Grow in emerging markets
 Increase commercial power
 Bolt-on acquisitions to strengthen
portfolio & regional set-up
3.4
3.5
3.9 3.9
2010 2011 2012 2013
+5%
+7%
+6%
Bayer Consumer Care – Outperforming
Markets in Past 7 Out of 8 Years

Merck’s Consumer Care Business Fits
Perfectly With Bayer Consumer Care
Complementary
Portfolio
Building on core
competencies
 Creation of a global leader in OTC
 Gaining scale in key categories CASF1, dermatology,
and gastrointestinal
 Optimizing footprint in North America
 Strong track record of growing OTC brands
 Strong geographical presence to broaden Merck’s
portfolio globally
 Utilizing integration skills from past transactions
Page 39
Acquisition criteria
fulfilled
 Creating leadership positions in important consumer
care categories and geographies
 Increasing consumer care margin2 by ~1pp from year 1
 Immediate core EPS accretion from year 13
1 cold, allergy, sinus, flu; 2 EBITDA pre-special items;
3 transaction incl. sGC collaboration

Combined Portfolio Significantly Strengthens
Global Positions
Gastrointestinal
Analgesics3
CASF2
Nutritionals
Dermatology1
Total
Others4
3,904 1,635 5,539
1,110 386
372 803
126 513
439 141
1,023
834
1 including sun care; 2 Cold, Allergy, Sinus, Flu; 3 including Cardio; 4 Foot Health, Women’s Health, Other
1,496
1,023
1,175
834
580
431
#1
#2
#3
#1
#2
Global position*2013 Sales in €m (pro-forma portfolio)
Note: Merck sales converted at average USD rate of 1.33 (FY 2013)
305
*After allowing for the Novartis/Glaxo deal; excluding Dihon acquisition in China; excluding Rx
MerckBayer

Combined Portfolio Significantly Strengthens
Geographic Footprint
Note: Merck sales converted at average USD rate of 1.33 (FY 2013)
*After allowing for the Novartis/Glaxo deal; excluding Dihon acquisition in China; excluding Rx
Latin America
Europe
North America
Total
Asia/Pacific
3,904 1,635 5,539
1,117 1,105
1,621 170
389
513
141
777
2,222
1,791
946
580
#1
#1
#5
#2
Global position*2013 Sales in €m (pro-forma portfolio)
191
169
MerckBayer

FY 2013 sales in € million (∆% yoy Fx-adj.)
321
310
232
214**
207
176
158
257
*Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx)
**Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus
916*
= Rx Sales
Combined Top 10 Portfolio –
Individual Brands with Annual Sales >€100m
576
Note: Merck sales converted at average USD rate of 1.33 (FY 2013); based on pro-forma FY 2013 net sales

Top Priorities To Be Executed Immediately
After Closing of Transaction…
 Ensure fast integration into operations
 Safeguard product supply
 Realize synergy potential
 Prioritize brand strategies within combined portfolio
 Realize Merck brand penetration opportunities ex-US
 Define and execute individual brand strategies
 Develop US scale advantage
 Strive for leadership with trade customers
 Provide a broader product portfolio
Critical mass
in US
Brand Roll-
Out ex-US
Smooth
integration

Clear Strategy For a Smooth Integration
2014 Q2 2014 Q42014 Q3 2015 (End State)
 Smooth integration expected due to experienced management team
• Ensure effective integration into Consumer Care
• Safeguard on-going product supply
• Prioritize and execute identified brand development / expansion strategies
• Ensure sufficient future capacity for growth
• Capitalize on Merck’s innovation capabilities
• Achieve scale and revenue synergies
• Capture consolidation and efficiency synergies by 2017
 Deal signing  Deal closing  Consolidation / Integration

Enhanced Scale and Broader Category
Scope Improve Product Offerings
US Retail Sales CASF Benefits from Enhanced Scale
 Co-promoting complementary
brands
 New item assortment and shelving
opportunities
 Improved merchandising efficiencies
 Bigger and more impactful trade
events
 Foster strategic partnerships with
retailers
FY 2013 retail sales in CASF in $ million*
$-
$200
$400
$600
$800
$1,000
$1,200
RB Bayer &
Merck
J&J Merck &
Co.
P&G Pfizer Chattem Bayer GSK
*Source: IRI; Latest 52WK; December 2013
 Make Bayer Consumer Care Top Strategic Partner for US Retailers

Maximizing Brand Potential Through
Global Expansion
Brand Sales by Major Region 2013 Expansion Plans
Analgesic
~80% in North America
Wound-healing
~75% in Europe
Anti-fungal
~75% in Europe & LatAm
Vitamins & minerals
~50% in Europe
CASF
Sun Care

Russia
Country OTC Market
Sales Growth
2013*
Execution Plans
China
 Global #2
 Growing 2x the
global rate
 Use investments in footprint, brand-building
and sales capabilities to extend Claritin
leadership
 Build sun care category with Coppertone
Brazil
 Global #7
 Fastest growing
market in LATAM
 Use investments in brand-building and
channel capabilities to develop key new
categories (sun care, foot care, allergy)
 Revitalize Coppertone and Dr. Scholl’s
brands
Russia
 Global #4
 Retail OTC is
largest healthcare
segment
 Focus on CASF brands using current
position to roll-out extended offerings
 Achieve #2 position
Execution Plan Focused on Key Brands in
Key Emerging Markets
+38%
+26%
+14%
*Bayer Consumer Care sales, currency-adjusted

Consumer Care is Well-Positioned for
Growth – Aspire to Clear OTC Leadership
OTC Market
Attractive
Bayer Has
Strong #2
Position
Plans for
Continued
Future Growth
 Trends favor continued growth
 OTC market model based on long-term brand building
 OTC businesses becoming more valuable over time
 Leader in key categories
 Multiple strong brands
 Track record of outperforming market growth
 Globalize established brands & launch innovation pipeline
 Focus on emerging markets where most of growth will come
 Strategic acquisitions and alliances

Bayer HealthCare

Leading Positions in Key Healthcare
Markets
Pharma
€11,188m
 Leading positions in key therapeutic categories
Consumer Care
€3,904m
 Global #2 in OTC-pharmaceuticals
Medical Care
€2,526m
 #1 in fluid injection systems, #1 in contrast media,
#3 in blood glucose meters
Animal Health
€1,306m
 Global #5, #2 in parasiticides
Sales Split by Segment 2013
25%
59%
7%
21%
13%
HealthCare €18,924m
Page 50

FY 2013 –
Growth Mainly Pharma Driven
FY 2013 HealthCare Sales Earnings
Pharma
+4% (+9%)
Consumer
Health
-1% (+3%)
36%
11,1887,736
FY 12 FY 13 FY 12 FY 13
3,232
3,490
1,887 1,844
+8%
-2%
5,119
5,334 +4%
1,460 -3%
3,787
3,973 +5%
2,327
1,421
Adj.
EBITDA*
Adj.
EBIT*
2,552 +10%
HealthCare €18,924m; +2% (+7%)
Price
+1%
Volume
+6%
Fx
-6%
Portfolio
+1%
Page 51

FY 2013 –
Top 10 HealthCare Product Performance
MI: Myocardial infarction
Sales in € million; ∆% y-o-y Fx adjusted
+6%
-12%
-1%
+3%
+2%
+10%
-1%
+2%
+211%
1,202
1,038
916
771
949
719
853
722
603
487
Hemophilia A
Multiple Sclerosis
Anticoagulation
Contraception
Cancer
Blood Glucose Meter
Contraception
Analgetic & sec.
MI Prevention
Parasiticide
-13%
Hypertension
Page 52

FY 2013 – Strong Business Momentum in
All Regions, Especially Emerging Markets
Emerging Economies
25%
FY 2013 HealthCare Sales
Latin
America
Eastern
Europe
Africa &
Middle East
~2,190
+7%
~1,980
+10%
~1,140
~880
+4%
24%
USA
+5%
30%
33%
13%
Emerging
Economies¹
+8%
Emerging
Asia³
Western
Europe +6%
Others²
+12%
HealthCare €18,924m; +2% (+7%)
Page 53
+10%

Recently Launched Pharma
Products Drive Growth
Page 54

Q1 2014 – HealthCare:
Recently Launched Products Drive Growth
Page 55
Sales Earnings
Pharma
+9% (+15%)
Consumer
Health
-5% (+1%)
36%
HealthCare €4,572m; +3% (+9%)
2,7821,790
Price
0%
Volume
+9%
Fx
-7%
Portfolio
+1%
Q1‘13 Q1‘14 Q1‘13 Q1‘14
832 873
445 428
+5%
-4%
1,277
1,301 +2%
343 -6%
953 946 -1%
610
321
Adj.
EBITDA*
Adj.
EBIT*
625 +2%

Q1 2014 –
Top 10 HealthCare Product Performance
MI: Myocardial infarction
+133%
-6%
+14%
+12%
+239%
-12%
-1%
-22%
342
270
183
178
190
146
181
157
140
Hemophilia A
Multiple Sclerosis
Anticoagulation
Contraception
Cancer
Ophthalmology
Contraception
Analgetic & sec.
MI Prevention
-3%
Hypertension
Page 56
Blood Glucose Meter
217 +6%

Pharma: Maximize Value of
Launch Products

2011 2012 2013 2014
Page 58
Pharma – Incremental Investments For
A New Performance Level
* new indications and new countries; products include Xarelto, Eylea,
Stivarga, Xofigo, Adempas• Bayer Investor Presentation • Meet Management • June 2014
Launch product sales in € bn
 Launch product* sales target of ~€2.8bn
in 2014 (old aspiration 2015: >€2.5bn)
 Launch phase to continue with >100
new launch events*
 Continuous R&D investments in life-
cycle management
 R&D investments in new drug
candidates
 Increased marketing and sales
investments in emerging markets
 Incremental marketing and R&D
investments of €0.5bn planned in 2014
<0.1
0.4
1.5
~2.8
Stivarga
Xarelto
Eylea
Xofigo
Recently launchd
Pharma products*

Pharma – Additional Investments To
Execute >100 Launch Events in 2014
1: regulatory process ongloing, launch preparations assuming approval
DTC: Differentiated thyroid cancer; mCRC: Metastatic colorectal cancer ;
mGIST: Metastatic gastrointestinal cancer; ACS: Acute coronary syndrome
 ~ 30 launches planned in secondary prevention of ACS
 Market introduction planned in >20 countries
 > 30 launches planned in mGIST1 in EU and other markets; continue
roll-out in mCRC (examples include Spain, Italy, Turkey)
 ~ 15 launches planned, including wetAMD and additional indications
(CRVO, mCNV1, DME1)
 Launches1 planned in > 20 countries
 > 30 launches planned in DTC1 in EU and other markets
Major Examples
 > 30 launches planned

Peak Sales Potential of Launch
Products Raised in February 2014
Peak Sales Potential*
* from 5 recently launched products: Xarelto, Eylea, Stivarga, Xofigo, Adempas
Page 60

Pharma – Peak Sales Potential of Launch
Products Raised in February to ≥ € 7.5bn*
*assuming approvals and launches as planned
 Unchanged
 Unchanged
 Unchanged
~€3.5bn
≥€1.5bn
≥€1bn
≥€1bn
≥€0.5bn
>€2bn
≥€1bn
Old Current

Xarelto – Broadest Profile of Any Novel Oral
Anticoagulant
Peak sales potential ~ €3.5bn
 Oral Factor Xa inhibitor
 Once-daily dosing advantage*
 First launches in EU for secondary
prevention of ACS underway
 Two-dimensional approach in life-cycle
management:
 Expansion into additional
thromboembolic disease areas
 Strengthening the clinical profile in
approved indications and special
patient populations
*exception 15mg BID dosing for treatment of acute DVT/PE or 2.5mg
BID for ACS sec. prevention; ACS: Acute coronary syndromePage 62

Xarelto – Performance Exceeding
Expectations
Page 63
 World-class launch, achieved
leading position in the novel
anticoagulants segment in key
markets
 Uptake significantly exceeding
expectations
 Sales target 2014: € 1.3-1.5bn131
155
219
259
316
342
Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Xarelto sales in million €

Expanding and Strengthening the Profile
of Xarelto
 Significant medical need in thromboembolic disease areas
 Heterogeneous patient populations in existing indications deserve further
characterisation
 Two-dimensional approach in life-cycle management
Expansion into addional
thromboembolic disease areas
Strenghtening the clinical profile in
approved indications
 Peripherial arterial disease / coronary
arterial disease
 Chronic heart failure with coronary
arterial disease
 Medically ill patients
 Patients with percutaneus coronary
intervention
 Patients who undergo cardioversion
 Patients undergoing ablation
 Evaluate 10mg /20mg dose vs. ASA in
secondary prevention of VTE
ASA: Acetylsalicylic acid, VTE: Venous thromboembolism

Eylea – Developed for the Treatment of
Multiple Back-of-the-Eye-Diseases
Peak sales potential ≥ €1.5bn
 Eylea is an anti-angiogenic therapy,
formulated for injection into the eye
 Strong adoption by retina community in
wAMD based on convenient bimonthly
dosing1 regimen
 Comprehensive range of indications to
address major eye diseases2:
 Launched in wAMD and CRVO; roll-out
ongoing
 Filed for DME (EU: 11/13; J: 02/14)
 Filed for mCNV in Japan (11/13)
 Filing planned for BRVO (in J, other
regions under evaluation)
1: after an initial phase of 3 consecutive monthly injections; 2: Bayer has marketing rights ex-US; wAMD: Wet age-related macular degeneration; CRVO:
Central retinal vein occlusion; BRVO: Branched retinal vein occlusion; mCNV: Myopic choroidal neovascularization; DME: Diabetic macular edema
Page 65

Eylea – Excellent Launch Trajectory
Page 66
 Excellent launch execution ahead of
expectations
 Market shares* > 45 % in Japan and
Australia
 Roll-out in Europe underway
 Strong uptake in early launch markets
Germany and Switzerland
 Encouraging launch in France and UK
 Positive NICE guidance for CRVO
indication in UK obtained in 02/14
 Progress with launch preparations for
i) additional countries and ii) additional
back-of-the-eye diseases**
*Market share as of December 2013 (Source IMS)
** pending regulatory approval
14
49
73
85
126
157
Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Eylea sales in million €

Stivarga – Developed as a Treatment for
Cancers of the Digestive Tract
 Oral cancer drug, potently blocking multiple
protein kinases
 Launched for treatment of mCRC and
mGIST in the US & Japan
 Launched for treatment of mCRC (8/13)
and filed for mGIST (9/13) in Europe
 Encouraging initial uptake
 Expanding to new indications
 Phase III in 2nd line liver cancer
ongoing
 Phase III in CRC (adjuvant therapy
after resection of liver metastases)
ongoing
mCRC: Metastatic colorectal cancer
GIST: Gastrointestinal stromal tumors
Peak sales potential ≥ €1bn
Page 67

Entering Additional Cancers of the
Gastro-Intestinal Tract with Stivarga
 Positive clinical data in metastatic colorectal cancer and 2nd-line
hepatocellular carcinoma
 Mode of action suggesting activity in a broad range of tumor types
 Life-cycle management targets:
 Phase III in 2nd-line hepatocellular
carcinoma
 Phase III in colorectal cancer after
resection of liver metastases
 Signal generating early clinical studies
in various cancer types including
gastric cancer
HCC: Hepatocellular carcinoma
CRC: Colorectal cancer
Expand in HCC and CRC Expand to additional tumor types

Xofigo – A New Treatment for CRPC
Patients with Bone Metastases
 First in class alpha-pharmaceutical
 Treatment of CRPC with symptomatic bone
metastases and no known visceral
metastatic disease
 Launched in the US (06/13)
 Approved in Europe (11/13) – launch
underway
 High awareness among oncologists and
urologists
 Life-cycle program initiated (including
combination studies in earlier settings of
prostate cancer)
CRPC: Castration-resistant prostate cancer
Peak sales potential ≥ €1bn
Page 69

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 / phase II combination
with abiraterone or enzalutamide
CRPC: Castration resistant prostate cancer
Status
initiated
initiated
initiated
planned

Adempas – First-in-Class sGC Stimulator for
Treatment of PAH and CTEPH
 Oral soluble guanylate cyclase (sGC)
stimulator approved for treatment of PAH
and CTEPH
 First and only drug receiving marketing
authorization for the treatment of CTEPH
 Launched in the US for treatment of PAH
and CTEPH (10/13)
 Launched in J for treatment of CTEPH
(04/14) – filed for PAH (04/14)
 Launched in first EU countries for CTEPH
and PAH (04/14)
 Collaboration with Merck & Co. announced
in May 2014 - 50/50 cost/profit split, joint
development and commercialization
strategy
*for indications PAH and CTEPH; CTEPH; : Chronic
thromboembolic pulmonary hypertension; PAH: Pulmonary arterial
hypertension
Peak sales potential ≥ €0.5bn*
Page 71

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 72
 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)

Accelerating the Development
of 5 early/mid-stage Pipeline
Assets
R&D

Five New Molecular Entities Selected For
Accelerated Development
Project Mechanism Indication Status
Copanlisib
(BAY 80-6946)
PI3-Kinase
Inhibitor
Cancer
Phase II in NHL
ongoing
Finerenone
(BAY 94-8862)
MR Antagonist
Chronic heart failure (CHF)
Diabetic nephropathy (DN)
Phase IIb in CHF and
phase II in DN
ongoing
Molidustat
(BAY 85-3934)
HIF-PH Inhibitor Anemia Phase IIb ongoing
Vericiguat
(sGC-Stimulator BAY 1021189)
sGC Stimulator
Worsening chronic heart
failure
Phase IIb ongoing;
collaboration with
Merck & Co. Inc.
Vilaprisan (sPRM)
(BAY 1002670)
Progesterone
Receptor
Antagonist
Symptomatic uterine
fibroids
Phase IIb ongoing
MR: Mineralocorticoid receptor; NHL: Non-Hodkin´s lymphoma
HIF-PH: HIF prolyl hydroxylase; sGC: Soluble guanylate cyclase;
sPRM: Selective progesterone receptor modulator

Positive Proof-of-Concept Increases
Confidence in NME-quality
NME: New molecular entity
CHF: Chronic heart failure
EPO: Erythropoietin
Copanlisib
Finerenone
Molidustat
Vericiguat
(sGC-Stimulator)
Vilaprisan
(sPRM)
100% of patients (6/6) with follicular lymphoma achieved
a partial response as best response in phase I
Phase II results in CHF patients suggest improved safety
with at least similar efficacy compared to spironolactone
Improvement in important cardiological parameters
observed in phase I
Significant increase in levels of endogeneous EPO and
reticulocytes demonstrated in phase I
Phase IIa data demonstrated reversible induction of
amenorrhea

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 II in Non-Hodgkin’s lymphoma is
ongoing; completion expected 1H 2015
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

Vilaprisan (sPRM; BAY 1002670) – For the
Treatment of Symptomatic Uterine Fibroids
● Vilaprisan is a novel oral, highly potent
and selective progesterone receptor
modulator
● Exhibits marked efficacy in an
innovative humanized fibroid disease
model1
● Phase IIa 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 IIa data BAY Vilaprisan
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
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

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)
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 :

sGC Modulation Has Significant Potential
 Cardiovascular diseases to be the
#2 therapeutic area by 2019**
 Significant areas of unmet medical
need including heart failure,
forms of pulmonary hypertension,
resistant hypertension, etc.
 Recently discovered mechanism
of sGC modulation holds promise
to address several areas of unmet
need
Unmet Medical Need in
Cardiovascular Diseases
sGC Modulation
*
sGC: Soluble guanylate cyclase; *cyclic guanosine monophosphate
**DecisionResources 2014

Strategic Pharma sGC Collaboration with
Merck & Co. Inc.
 Maximize potential of all pipeline assets
 Leverage R&D expertise in cardiovascular
 Improve funding capabilities – thereby maximizing commercial
potential of pipeline assets
 Optimize combined marketing & sales power
Collaboration between Merck and Bayer on sGC modulation to
Page 86
Joint development and commercialization strategy with global
50-50 cost and profit sharing
Merck to pay Bayer up to $2.1bn, comprising $1.0bn up-front
and up to $1.1bn in contingent milestone payments

Maximizing the Potential of sGC Modulation
 Bayer has marketing rights in Americas;
Merck in all other territories
 Co-promotion option for both parties in
territories of other party
 Enables Bayer to build its commercial
presence in US specialty pharma while
maximizing value of Adempas
*scope defined by sGC mechanism
Adempas (Riociguat) Vericiguat (BAY 1021189)
 Merck has marketing rights in Americas;
Bayer in all other territories
 Co-promotion option for both parties in
territories of other party
 Maximizes value of Vericiguat by
leveraging Merck’s US strength
Early/Future Pipeline Assets*
 Option to include other sGC pipeline assets (of both parties) that successfully complete
Phase 1 in the next 5 years
 Global 50/50 cost/profit split; joint development and commercialization strategy

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

Vericiguat (sGC Stimulator; BAY 1021189) –
Improvement of Cardiovascular Function
sGC: Soluble guanylate cyclase
HF: Heart failure
Phase I of Vericiguat show improved cardiac
output (n = 36)
Fi gur e: Means and st andard devi at i ons f or i mpedance cardi ography over t i me f or Cardi 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
 Placebo
 5 mg
 7.5 mg
 10 mg
0 1 2 3 4
Time (h)
33.544.55.05.56.06.57.0
 Vericiguat 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
 Collaboration with Merck & Co (50/50
cost/profit split), joint development and
commercialization strategy
Cardiacoutput(L/min)

The New sGC Franchise is Strong
in the Industry
Phase I Phase III Submitted LaunchedPhase IIIndicationProject
PAH/CTEPH
PH-IIP
dSSc
CF
wCHF
PH
PH-HF
Adempas
Vericiguat
MK 8892*
rHT
Research*
in preparation
in preparation
in preparation
Research/
Preclin.
PH: Pulmonary hypertension; PAH:Pulmonary arterial hypertension;
CTEPH: Chronic thrombmoembolic PH; PH-IIP: PH assoc. with interstitial idiopathic
pneumonia; dSSc: Diffuse systemic sclerosis; CF: Cystic fibrosis; wCHF: Worsening
chronic heart failure; rHT: Resistant hypertension; HF: Heart failure
*Potential collaboration assets, subject to execution of options in the next 5 years after successful completion of Phase 1
BAY sGCstim
*
BAY sGCact
*
Raynaud’s

Major Expected Pharma Pipeline Newsflow
2014/2015
Estimated primary study completion as of May 2014
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 91
2014
2015
BAY 85-8501 (Elastase Inhibitor) Completion of phase II in bronchiectasis
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 diabetic nephropathy
Vericiguat Completion of phase II in worsening chronic HF
Molidustat (HIF-PH Inhibitor) Completion of phase II
Finerenone (MR Antagonist) Completion of phase II in worsening chronic HF
Nexavar Completion of phase III in breast cancer (RESILIENCE)
Vilaprisan (SPRM) Completion of phase II

Established Pharma Products
Page 92

2010 2011 2012 2013
Hemophilia Franchise –
Stable Growth
 Global # 2 in hemophilia A treatment
 Competitive portfolio in hemophilia:
 Positive phase III data with site-
directed PEGylated long-acting
Factor VIII (BAY 94-9027)
 Product from plasma-free
process (BAY 81-8973) – filing
planned for 2014
 Investment of € >500m planned to
establish additional manufacturing
capacities for recombinant FVIII
products in development
Sales in € million; ∆% Fx adj.
299
705
290
785
332
850
US Rest of the world
1,004
1,075
1,182
+6%
Page 93
330
872
1,202

Prophylaxis in Hemophilia – Breakthrough in
Prolonging Dosing Intervals
 Prophylaxis can protect hemophilia patients more effective compared to on-
demand treatment in terms of
 Reducing frequency and severity of bleeding episodes
 Preserving joint health/function and
 Maintaining overall long-term health status
 However, current standard in prophylaxis involves two to three infusions per
week
 A long-time goal in hemophilia prophylaxis has been to reduce the burden
from frequent infusions
 PROTECT VIII demonstrated evidence of reliable prophylaxis of bleeding in
hemophilia A with dosing at every 5 and 7 day intervals

Expanding the Hemophilia Franchise – Long-
Acting Site-directed PEGylated Factor VIII
 Damoctocog alfa pegol (BAY 94-
9027) is a B-domain–deleted
recombinant factor VIII (BDD-rFVIII)
with site-specific PEGylation
 Attachment of PEG extends half-life
without reducing FVIII activity
 Positive PROTECT VIII phase III
data
 Filing US, EU and other regions
planned for 2H’2015
Site-specific
PEGylation to
extend FVIII
half life
B-domain
deletion

Damoctocog alfa pegol (BAY 94-9027) –
Design of the PROTECT VIII Phase III Study
 PROTECT VIII is a pivotal study assessing safety and efficacy of the site-
directed PEGylated FVIII Damoctocog alfa pegol
 Part A: On-demand and prophylactic treatment (completed)
 Part B: Major surgery (ongoing)
6
Randomization
0 10 14 20 28weeks
2x/week 25 IU/kg (n  120)
2 or more breakthrough bleeds:
No or 1 breakthrough bleeds:
36                   
Screening
Screening
2  
On‐demand therapy individual dosage n=20
2x/week 30 to 40 IU/kg n=24*
Every 5 days 45‐60 IU/kg n=43
Every 7 days 60 IU/kg n=43
* 13 assigned due to bleeding; 11 default/randomization arms full
38

Damoctocog alfa pegol Phase III Results -
Reduction of Infusion Frequency in Prophylaxis
 Met primary objective of protection from bleeds with fewer infusions
 Extending infusion intervals up to 7 days resulted in protection from bleeds
 No inhibitors against FVIII developed during treatment period
Study Arm
Patients (n)
remaining on
treatment
Patients with no
bleeding
Median ABR
Prophylaxis: infusion
2x/week
n.a. n.a.
17.4 (reduction to 4.1 after
dose increase)
every 5 days
43/43 44% 1.9
every 7 days
32/43
37%
(incl. non-completers)
3.9 *
(incl. non-completers)
On-demand treatment n.a. n.a. 23.0
ABR: Annualized bleeding rate
*Median ABR for the 32 (74%) completers was 0.96

The Leader in Women’s HealthCare
Yaz family
Sales ∆% y-o-y, () FX adj.
Women’s Healthcare 2013
€3,034m
-7% (-1%)*
+6 (+10)Mirena
-23 (-16)Diane
-18 (-13)
+7 (+12)Qlaira
Other products +1 (+7)
-13 (-8)Microgynon
-2 (0)Valette
-13 (-8)Meliane
-7 (-1)Angeliq
Page 98
* Fx & portf. adjusted growth -4% due to Essure with €74m sales in 2013

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)
Page 99

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; launched in EU
 Skyla; launched in the US
 Phase III for a long-acting (up to 5
years), low-dose, small
contraception device underway
2010 2011 2012 2013
285
254
313
268
385
292
539
581
677
+10%
Page 100
415
304
719

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
 Launch of BETACONNECT (new
electronic auto-injector) in Europe
underway
2010 2011 2012 2013
473
733
447
670
578
638
1,206
1,117
1,216 -12%
Page 101
499
539
1,038

Nexavar –
Our Cornerstone in Oncology
 Approved for kidney cancer (RCC),
liver cancer (HCC) and radioactive
iodine refractory differentiated thyroid
cancer (DTC)
 Only approved drug with overall
survival benefit in HCC
 Phase III trials in:
 Breast cancer
 RCC (adjuvant)
2010 2011 2012 2103
174
531
174
551
204
588
705 725
792
+3%
Page 102
219
552
771

Aspirin –
Sustainable for More Than A Century
 One of the world’s most recognized
brands
 Available as OTC and Rx Aspirin
 Bayer’s #1 product in Emerging
Markets; 8% growth in China in
2013
2010 2011 2012 2013
358
418
404
471
476
494
Rx-Aspirin OTC-Aspirin
776
875
970 -1%
Page 103
452
464
916

Aspire to Become the Leading
OTC Company

Evolution of Bayer Consumer Care’s
OTC Business
2008
Acquisition of OTC brand
portfolio from Sagmel
(CEE) and Topsun (China)
1999
Aspirin trademark
centenary-worldwide
sales > €500m
1899
ASPIRIN introduced
as an over-the-counter
(OTC) medicine
1994
Consumer Care business group
created by the acquisition of North
American OTC business of Sterling;
Acquisition of the “Bayer Cross”
Trademark in USA
2005
Acquisition of Roche
Consumer Health
2013
Aspirin trademark sales
of >€900m
Acquisition of
Steigerwald (Germany)
2014
Proposed acquisition of Merck’s
Consumer Care business (US)
Transaction agreement signed with
Dihon Pharmaceutical Group (China)

Growth Strategy
 Maximize brand potential
 Global expansion of key brands
 Exploit our innovation pipeline
 Grow in emerging markets
 Increase commercial power
 Bolt-on acquisitions to strengthen
portfolio & regional set-up
3.4
3.5
3.9 3.9
2010 2011 2012 2013
+5%
+7%
+6%
Bayer Consumer Care – Outperforming
Markets in Past 7 Out of 8 Years

Merck’s Consumer Care Business Fits
Perfectly With Bayer Consumer Care
Complementary
Portfolio
Building on core
competencies
 Creation of a global leader in OTC
 Gaining scale in key categories CASF1, dermatology,
and gastrointestinal
 Optimizing footprint in North America
 Strong track record of growing OTC brands
 Strong geographical presence to broaden Merck’s
portfolio globally
 Utilizing integration skills from past transactions
Page 107
Acquisition criteria
fulfilled
 Creating leadership positions in important consumer
care categories and geographies
 Increasing consumer care margin2 by ~1pp from year 1
 Immediate core EPS accretion from year 13
1 cold, allergy, sinus, flu; 2 EBITDA pre-special items;
3 transaction incl. sGC collaboration

FY 2013 sales in € million (∆% yoy Fx-adj.)
321
310
232
214**
207
176
158
257
*Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx)
**Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus
916*
= Rx Sales
Combined Top 10 Portfolio –
Individual Brands with Annual Sales >€100m
576
Note: Merck sales converted at average USD rate of 1.33 (FY 2013); based on pro-forma FY 2013 net sales

Top Priorities To Be Executed Immediately
After Closing of Transaction…
 Ensure fast integration into operations
 Safeguard product supply
 Realize synergy potential
 Prioritize brand strategies within combined portfolio
 Realize Merck brand penetration opportunities ex-US
 Define and execute individual brand strategies
 Develop US scale advantage
 Strive for leadership with trade customers
 Provide a broader product portfolio
Critical mass
in US
Brand Roll-
Out ex-US
Smooth
integration

Clear Strategy For a Smooth Integration
2014 Q2 2014 Q42014 Q3 2015 (End State)
 Smooth integration expected due to experienced management team
• Ensure effective integration into Consumer Care
• Safeguard on-going product supply
• Prioritize and execute identified brand development / expansion strategies
• Ensure sufficient future capacity for growth
• Capitalize on Merck’s innovation capabilities
• Achieve scale and revenue synergies
• Capture consolidation and efficiency synergies by 2017
 Deal signing  Deal closing  Consolidation / Integration

Enhanced Scale and Broader Category
Scope Improve Product Offerings
US Retail Sales CASF Benefits from Enhanced Scale
 Co-promoting complementary
brands
 New item assortment and shelving
opportunities
 Improved merchandising efficiencies
 Bigger and more impactful trade
events
 Foster strategic partnerships with
retailers
FY 2013 retail sales in CASF in $ million*
$-
$200
$400
$600
$800
$1,000
$1,200
RB Bayer &
Merck
J&J Merck &
Co.
P&G Pfizer Chattem Bayer GSK
*Source: IRI; Latest 52WK; December 2013
 Make Bayer Consumer Care Top Strategic Partner for US Retailers

Maximizing Brand Potential Through
Global Expansion
Brand Sales by Major Region 2013 Expansion Plans
Analgesic
Wound-healing
~75% in Europe
Anti-fungal
~75% in Europe & LatAm
Vitamins & minerals
~50% in Europe
CASF
Sun Care

Russia
Country OTC Market
Sales Growth
2013*
Execution Plans
China
 Global #2
 Growing 2x the
global rate
 Use investments in footprint, brand-building
and sales capabilities to extend Claritin
leadership
 Build sun care category with Coppertone
Brazil
 Global #7
 Fastest growing
market in LATAM
 Use investments in brand-building and
channel capabilities to develop key new
categories (sun care, foot care, allergy)
 Revitalize Coppertone and Dr. Scholl’s
brands
Russia
 Global #4
 Retail OTC is
largest healthcare
segment
 Focus on CASF brands using current
position to roll-out extended offerings
 Achieve #2 position
Execution Plan Focused on Key Brands in
Key Emerging Markets
+38%
+26%
+14%
*Bayer Consumer Care sales, currency-adjusted

Consumer Care is Well-Positioned for
Growth – Aspire to Clear OTC Leadership
OTC Market
Attractive
Bayer Has
Strong #2
Position
Plans for
Continued
Future Growth
 Trends favor continued growth
 OTC market model based on long-term brand building
 OTC businesses becoming more valuable over time
 Leader in key categories
 Multiple strong brands
 Track record of outperforming market growth
 Globalize established brands & launch innovation pipeline
 Focus on emerging markets where most of growth will come
 Strategic acquisitions and alliances

Animal Health – Operating in an
Attractive Market Environment

Demonstrating a Solid, Long-Term Sales
Growth Trajectory
Sales in € million; ∆% Fx & portfolio adj.
 Overall global #5 and global #2 in
parasiticides
 Ranked #3 in CAP (~60% of sales)
 Sector driven by:
 Emotional relationships to pets
 Infectious and chronic diseases
 Ranked #7 in FAP (~40% of sales)
 Sector driven by:
 Increasing customer/consumer
awareness
 Food safety & disease transmission
 Globalization in farm exports
Highlights
977
1,120
1,186
1,303 1,306
2009 2010 2011 2012 2013
+4%

Aspiring Further Sustainable Growth
6%
AH Market 2013 by Player
Zoetis Merck Merial Elanco Bayer
Boehringer I. Novartis Virbac CEVA Others
€21bn
Growth Strategy
 Expand market share of existing
portfolio while delivering innovation
 Strengthen and expand 2013 acquired
TEVA US AH business
 Drive research & development at a 10%
sales ratio
 Explore M&A opportunities for further
growth

New Innovative Product Examples –
Recent Launch Highlights
 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 at 2-weeks
old

Innovative Life-Cycle Management –
Example of Advantage Family
Highlights
2002 2013
202
487
 Successful franchise through:
 Brand building – investments in
direct-to-consumer for brand
awareness
 Channel diversification – meeting
consumers where they are
 Life Cycle Management (LCM) –
ongoing with new claims

Selected R&D Activities
New
formulations Antimicrobials
Pharmaceutical
SpecialtiesParasiticides
Focus to improve:
 Convenience
 Efficacy
 Safety
 Antibiotics
(Quinolones)
 Dairy Health
 Respiratory
Diseases
Products
 Allergy &
Inflammation
 Chronic Kidney
Disease
 Ecto-
parasiticides
 Endo-
parasiticides
 Endecto-
parasiticides
R&D Investment approx. 10% of turnover

Medical Care – Diabetes Care
and Radiology
DC & R

Radiology &
Interventional
Diabetes
Care
Sales Split 2013
Medical Care €2,526m; -5% (0%)
40% 60%
Medical Care – Strong Legacies in Diabetes
Care and Radiology
Diabetes Care:
 Comprises self testing blood
glucose monitoring devices
Radiology
 Combines our Contrast
Media, Injector and
Informatics businesses

Diabetes Care –
Global Player in Blood Glucose Meters
Highlights
1,000 993 1,002
1,047
1,007
2009 2010 2011 2012 2013
-1%
 Global #3 in blood glucose meters
 Stable business performance despite
difficult market conditions
 Market characterized by growth in
prevalence, but pricing pressure
 Latest innovation products include
CONTOUR® Next and Next Link
 MULTIPULSE technology ensures high
accuracy blood glucose measurements
 Wireless transmission of results to Medtronic
insulin devices

1,363
1,474 1,498
1,606
1,519
2009 2010 2011 2012 2013
0%
Radiology – Leading Positions in Contrast
Media and Application Devices
 Integrated subsidiary Medrad Inc. and
our contrast media business
 The business comprises:
 Contrast media: CT and MRI
 Contrast media injectors: Medrad
brand
 Informatics
 Services
 Synergies through focus on similar
centers / physicians
Highlights

Bayer CropScience

18%
25%
11%
11%
7%
28%
Sales 2013: €8,819m
Insecticides€1,622m
Market position:
Fungicides€2,195m
3Market position:
SeedGrowth€921m
1-2Market position:
Herbicides €2,456m
4Market position:
Env. Science €651m
1Market position:
Seeds €974m
7Market position:
Page 128
CropScience –
A Leader in Chemical Crop Protection
1
Market positions based on company reportings and Cropnosis estimates
Page 128

25%
22%
14%
12%
8%
6%
6%
4%3%
Fruits & Vegetables
CerealsOilseeds
Soy
Corn
Cotton
Rice
Sugar Crops
* by major crop groups excluding industrial business and non-agricultural solutions
CropScience Sales 2013*
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

Strong Growth at
Record Margin

FY 2013 –
Strong Growth at Record Margin
Page 132
Crop Protection
+7% (+11%)
Environmental
Science
-4% (+1%)
Seeds
+1% (+1%)
2013 Sales Earnings
CropScience €8,819m; +5% (+9%)
Price
+3%
Volume
+7%
Fx
-5%
Portfolio
0%
7,194
FY‘12 FY‘13 FY‘12 FY‘13
2,025
2,248 +11%
1,543
1,801 +17%
Adj.
EBITDA*
Adj.
EBIT*
651
974
24.2% 25.5%Margin

Emerging Economies
25%
CropScience Sales in FY 2013
CropScience €8,819m; +5% (+10%)
Latin
America
Eastern
Europe
Africa &
Middle East
Emerging
Asia³
~900
+11% ~2,200
+27%
~600
+9%
~300
+4%
Page 133
17%
USA
+3%
25%
45%
13%
Emerging
Economies¹
+18%
Western
Europe +3%
Others²
+6%
FY 2013 –
Strong Growth in Emerging Economies
Sales in € million, ∆% yoy Fx adjusted

Successful Start to The Year
Page 134

Sales Earnings
Q1 2014 – CropScience:
Early Start to the Season in Europe
Page 135
Crop Protection
+6% (+12%)
Environmental Science
+1% (+8%)
Seeds
+3% (+12%)
CropScience €2,900m; +5% (+12%)
Price
+2%
Volume
+10%
Fx
-7%
Portfolio
0%
2,231
Q1‘13 Q1‘14 Q1‘13 Q1‘14
1,081 1,098 +2%
969 988 +2%
Adj.
EBITDA*
Adj.
EBIT*
166
503

Herbicides
Fungicides
Seeds
503
+12%
Insecticides
Sales in € million; ∆% y-o-y Fx & portfolio adj.
Q1 2013 Nominal growth Q1 2014
Env.
Science
Q1 2014 – Growth Driven by All Segments
Page 136
965
+8%
662
+17%
352
+13%
252
+ 19%
166
+ 8%
Seed
Growth
 Strong demand for cereal herbicides
in Europe
 Early start to the season in Europe;
Growth in LatAm mainly driven by Fox
 High demand in the US, especially for
Poncho family in corn and soybean
 Marked sales increase in Europe and
LatAm; excellent performance of Belt
 Growth in the Americas, mainly driven
by cotton and vegetable seeds
 Positive performance for both
professional and consumer business

Customer-Centric Strategy
Pays Off
Page 137

Customer-Centric Strategy Pays Off
Strengthen
Customer Centricity
Lead the Way
in Innovation
Enhance
Crop Protection &
Environmental Science
 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

Q1 2014 - Significant Contribution from
New Crop Protection Products
1.1
1.5
1.8
2.6
2012 2013 2014e 2016e
+33%
Sales from new Crop Protection products
launched since 2006 in €bn
∆% y-o-y, () Fx adj.
 (+16%) - Superior ‘all-in-one’
cereal fungicide with yield-boosting
effect
 herbicide (+14%) -
Excellent weed control in corn and
cereals, also in case of glyphosate
resistance
 (+75%) - Broad-spectrum
insecticide with fast, long-lasting
action
 (+112%) - New fungicide now
available in several key markets
Q1 2014 Highlights
Q1
0.6
Page 139

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 Xpro
 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
 Additional crop selectivity in combination with
HPPD inhibitor Isoxaflutole and safener Cyprosulfamide
Grower benefits:
 Controls annual grasses and broad leaved weeds in
corn including those that are resistant to glyphosate
 Offering flexibility in application timing
 Strong enough to achieve one-pass weed control
 Rapid burndown, long-lasting residual control
Peak sales potential of more than €350m
Page 142

Belt Insecticide - Preserve Yield Potential
 Flubendiamide is a phthalic acid diamide
 Acts as ryanodine receptor modulator, larvae loses
muscle control
Grower benefits:
 Controls lepidoptera pests in a wide range of crops,
including soybeans, corn and cotton
 Fast action, larvae stops feeding immediately
 Rainfast with excellent residual activity
 Provides minimal risk to beneficial insects
 Excellent resistance management tool
Control
+ BELT®
Heliothis
Peak sales potential of more than €300m
Page 143

Sustainable Alternatives to Fight Glyphosate
Weed Resistance
 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
 Significant expansion of production capacity for Liberty planned
 We are committed to develop new and more sustainable weed
management solutions
 Highly effective pre-emergent and selective herbicide portfolio launched
100
200
300
400
2010 2011 2012 2013
Liberty/Basta Sales in €m
Page 144

Future Market Potential of Biologicals
Expected to Increase Significantly
 Biologicals are products derived from naturally-occurring living organisms or
materials from plants or microorganisms
 Increasing demand from consumers for safe and sustainably produced food,
especially in fruits & vegetables area
 Global retailers have more stringent residue reduction targets
 Currently lower regulatory hurdles and faster registration process for
biologicals compared to chemicals
 Grower benefits from short pre-harvest and re-entry intervals and thus high
flexibility on application timing
 When used in combination or rotation with chemicals, biologicals provide new
tools in resistance management
Market potential expected to triple from $1.2bn in 2010 to $4bn in 2020
Page 145

Further Growth Opportunities in Biologicals
with Bolt-On Acquisitions
 Successful market entry with nematode seed treatment Poncho/Votivo in 2011
(Sales 2013: €150m)
 AgraQuest acquired in Q3 2012 for €375m including milestone payments.
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
 Biagro acquisition* adds nitrogen inoculants and plant health promoters
 We aim to become the world leader in integrated crop solutions
* Clearance by Antitrust Authority in Argentina outstanding
Page 146

Acquisition of Biagro to Strengthen our
Soybean Business in Latin America
 Argentinean company Biagro acquired in Q1 2014*
 Biagro portfolio includes seed-applied biofertility
inoculants and plant growth-promoting microorganisms
 Acquisition is a further milestone to become a leader in
biological seed treatments
 Provides soybean growers in Latin America with
innovative offerings to substantially improve productivity
 Nitrogen essential for plant growth and soybean seed
production
 Biagro inoculants are a very effective and cost-efficient
method of supplying nitrogen to soybeans and other
legume crops
Inoculants containing
high-quality Rhizobium
bacteria strains enable
plant roots to fix nitrogen
from the atmosphere,
resulting in enhanced
plant growth, more
vigorous root structure
and greener plant foliage
Page 147

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
 Around 240 food chain partnerships covering most of the
main fruit & vegetable crops and rice
 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 148

Serving Grower Needs Beyond
Crop Protection and Seeds
Services Examples
Providing agronomic support
 Crop advice
 Expert trainings
 On-farm trials
 Field days
Optimizing yield and quality by
offering diagnostic and prediction
tools
 Weather forecast
 Pest prediction
 Disease diagnosis
 Resistance risk
calculator
 Assessment of quality
indicators
Helping to optimize application
process and seeding
 Application
collaborating with
machinery providers
 Seed treatment
equipment checks
Creating transparency by offering
tracking / documentation support
 Field documentation
 RoI calculation
 Certification support
Improving farm management by
financing and insurances
 Ag input financing
 Barter business
 Crop price insurance
Page 149

Translating R&D Effectively
into Sales
From to
€
Page 150

Pipeline Peak Sales Potential  €4bn
from Products Launched 2011 - 2016*
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 Technologies
Constant Life Cycle Management through new formulations and mixtures that also includes Biologicals
Disease Resistant
+ Salinity Tolerant
Hybrid Rice
Insect + Disease
Resistant
Hybrid Rice
Improved Canola
Oil Profile
Dual Herbicide Tol.
+ Novel Insect
Resistant Cotton
Insecticide
Biologicals
Seed Varieties
GlyTol + HPPD
Tolerant
Soybeans2
Biologicals
Fungicide
Bayer
Wheat Seed
LibertyLink +
Roudup Ready
Hybrid Canola
Council
Herbicide
Disease Resistant +
Submergence Tol.
Hybrid Rice
Seed Varieties
Sivanto
Insecticide
Page 151

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 152

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)
Page 153

Build up a Global Wheat Seed Business
 Largest broad-acre crop worldwide
 Market value still small, but major potential seen with productivity improvement
 Hybrids provide opportunity for both yield increase and improved yield stability
The Market* Our Efforts Our Goals
• 7 breeding centers
• Numerous collaborations
• Significant R&D investments
The Market
• 226m ha of wheat acres,
majority is farm-saved seed
• Current market of €0.2bn
(royalties only)
• Slow productivity increase
• Yield increase
• Nitrogen use efficiency
• Water use efficiency
• Heat tolerance
Market Entry
• Launch of first variety
planned in 2015
• Suitable for western and
central regions of the Ukraine
• Open pollinated variety
* Source: FAO, Context Networks 2012 (seed co level)
Corn: 60.7 EUR/ha  Wheat: 0.9 EUR/ha
The Market
Page 154

Acquisitions in Latin America Broaden
our Portfolio in Soybean Seed
 Building up proprietary seed
business with high quality germ-
plasm pool
 Establishing best-in-class
breeding platform
 Leveraging the potential of our trait
platform through out-licensing
 Launch of Bayer soybean brand
Credenz planned late 2014
 Integrated business model
combining seeds & crop protection
* subject to clearance by Antitrust Authority in Argentina
2013 FN Semillas*
soybean seed
company
Buenos Aires, Argentina
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
Page 155

Strategic Progress Achieved
Enhance
Crop Protection
& Env. Science
Strengthen
Customer
Centricity
Lead the Way
in Innovation
Expand Seeds
Business
● €1.5bn sales in 2013 with products launched since 2006
● Biologicals strengthened further with Prophyta and Biagro*
● Expansion of supply capacities for key active ingredients
● Support to increase productivity of small-scale farmers
● 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 presence in Latin American soybean market
● Further investments done in wheat and vegetables
● Development of innovative traits
** from products launched between 2011-2016Page 156

Further Growth at Benchmark
Profitability
Page 157

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
Page 158

Crop Commodity Prices Declined in 2013,
But Are Still At Relatively High Levels
Source: Bloomberg
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
0
100
200
300
400
500
600
700
800
900
1,000
2008 2009 2010 2011 2012 2013 2014
Soybeans
(LS)
Corn (LS)
Wheat
(LS)
Canola
(LS)
Rice (RS)
Cotton
(RS)
USD/ton USD/ton
Page 159

Seed and Crop Protection Market Expected
to Grow  5% in 2014
 In many growing regions farmer income level is healthy after 3 good years
 Commodity prices still above critical threshold for farmers, triggering
investment in high-value seeds and crop protection
 Steady expansion of soybean farming in Latin America
 Expansion of agricultural production in Asia/Pacific continues
DESPITE
 Prices for agricultural commodities expected to be below 2013 levels
 Global stocks-to-use ratios for key crop commodities on upward trend
Page 160

Promising 2014 Outlook
 We expect to grow faster than the market
 We plan to raise sales by a mid- to high-single-digit percentage on a
currency- and portfolio-adjusted basis
We anticipate negative currency effects of about 3%
 We plan to increase EBITDA before special items by a low single-digit
percentage, allowing for negative currency effects of approx. €150m
Outlook depends on specific planning assumptions as detailed in the Annual Report
Assuming average FX rates of Q4‘13 (USD 1.36)Page 161

CropScience – Above Market Growth at
2013
Guidance
2014
Aspiration
2016
Sales Increase €8.8bn Mid- to high-single-digit %
6% CAGR
Adj. EBITDA Increase €2.2bn Low-single-digit %
Adj. EBITDA Margin 25.5% - 24-25%

 Increasing demand for innovative and
sustainable agricultural solutions
 Expansion of production capacity of
for herbicide glufosinate-ammonium
 Broadening seeds infrastructure for
soybean and wheat
 Expanding and modernizing R&D
facilities
 CAPEX expansion to
€2.4bn for 2013 - 2016
Stepping Up Investment Plans to Fuel
Future Growth
Capital Expenditures (PPE only, in €m)
303
453
620
2012 2013 2014e
Page 163

Bayer MaterialScience

MaterialScience –
Leading Positions in All Segments
* Aliphatic isocyanates
MaterialScience €11,238m
Polyurethanes
€6,054m
 #1-2; approx. 19-24% market share
54% 6%
23%
17%
Polycarbonates
€2,640m
 #1; approx. 27% market share
Coatings, Adhesives, Specialties
€1,863m
 #1; >40% market share*
Industrial Operations
€681m
Sales Split by Segment 2013
Page 165

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

Automotive
Other industries*
Construction Furniture / Wood Electro / Electronics
19% 18% 15%21%
MaterialScience –
Sales By Key Customer Industries
Bayer MaterialScience sales by industry in 2013
= 73% +
Chemicals
*Sports/leisure, cosmetics, health
10% 17%

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

Performance Below
Expectations

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