1. Second quarter 2011 -
Bayer continues positive
momentum
Werner Baumann, CFO
08/30 – 09/01/11 – U.S. West Coast Roadshow
2. 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.
Page 2 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
3. 2nd quarter 2011 – Bayer continues positive momentum
Group outlook 2011 projects higher sales and adjusted EBITDA
€15bn investment plan through 2013 to maximize value of new product
pipeline strength and to realize emerging markets opportunity
Two-year group restructuring plan to generate €800m efficiency
improvements underway
Page 3 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
4. 2nd Quarter 2011 –
Bayer Continues Positive Momentum
Q2‘11 ∆% Highlights
€ million € million
Sales 9,252 +1 (+5)
Solid business expansion
EBITDA
- reported 1,906 +6 Adjusted EBITDA improved, good
- adjusted 2,035 +6 season for CropScience, slight
EBIT expansion at HealthCare,
- reported 1,273 +26
MaterialScience remained level
yoy
- adjusted 1,417 +12
Net income 747 +41 Reported EBIT impacted by net
Net cash flow 1,530 -1 special charges of €144m
Free operating cash flow 1,232 +4
EPS 2011 Group financial outlook
- reported 0.90€ +41 reiterated
- core 1.29€ +11
( ) = Fx & portfolio adjusted
Page 4 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
6. 2nd Quarter 2011 –
Emerging Markets Leading The Growth
Q2 2011 Group sales by region Emerging Economies
+5%
USA Emerging
+4% Economies¹ ~1,300
20% 36% +7%
20% 36%
+4%
~900
+9%
34%
+14%
~600
10% ~500
Western Europe Others²
+6% +2%
Group €9,252m; +5% Emerging Latin Eastern Africa &
Asia³ America Europe Middle East
In € million, ∆% yoy Fx adjusted 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
Page 6 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
7. 2nd Quarter 2011 –
Cash Flow And Net Debt Development
Q2 2011 Cash Flow Net Debt Development
In € million In € billion
GCF NCF Invest- oFCF
+0.3
cont. ments
7.1 7.4
1,532 1,530 298 1,232
∆%
y-o-y +19% -1% -18% +4%
Q1´11 Q2´11
Page 7 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
8. Fiscal 2010 –
Operating Performance On Track
FY‘10 ∆% Highlights
€ million € million
Sales 35,088 +13 (+8)
Achieved group financial targets in
EBITDA 2010
- reported 6,286 +8
- adjusted 7,101 +10 Strong year at MaterialScience –
EBIT HealthCare and CropScience
- reported 2,730 -9
below
- adjusted 4,452 +18
Net income diminished by high
Net income 1,301 -4 special charges
Net cash flow 5,773 +7
Free operating cash flow 4,152 +12 Strong operating cash flow – net
EPS financial debt reduced
- reported 1.57 -8
- core 4.19 +15
( ) = Fx & portfolio adjusted
Page 8 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
9. Selected Indicators 2006-2010 -
Track Record of Performance
EBITDA before special items and margin* (€ billion) Core earnings per share* (€)
7.1
6.8 6.9 6.5 5 4.19
5.6 4.17
3.80 3.64
4
2.99
3
19.3% 20.9% 21.1% 20.8% 20.2%
2
0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Net cash flow* (€ billion) Net financial debt*, ** (€ billion)
5.8 20 17.5
5.4 16 14.2
3.9 4.3 12.2
3.6 12 9.7
7.9
8
4
0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
* 2006 - 2008 from continuing operations ** year-end data
Page 9 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
10. Building A World-Class
Innovation Company
Page 10 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
11. Building A World-Class Innovation
Company
Portfolio Growth Productivity
Build on leading industry Invest in innovation Decomplex structures
position in all 3 capabilities and processes
subgroups
Maximize value of new Implement two-year
Enhance competitive product pipeline strength group restructuring plan
position
Realize emerging market
opportunity
Target is to deliver mid-single digit organic sales growth in 2011
and to invest €15bn in growth during 2011 - 2013
Page 11 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
12. Bayer –
A Leader in Its Markets
€16.9bn HealthCare
Pharmaceuticals €10.9bn,
leading positions in key categories
Consumer Health €6.0bn,
OTC pharmaceuticals, blood glucose meters and
50% 30% veterinary medicines, global #2-4
€6.8bn CropScience
Agrochemicals and seeds & traits,
global #2 in agrochemicals
20%
€10.2bn MaterialScience
Polyurethanes and polycarbonates,
global #1/2
Sales 2010: €35.1bn
Break-down excluding reconciliation
Page 12 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
13. HealthCare-
Pharma Pipeline Maturing
What it does Status
1st indication launched/
Cardiology
Xarelto inhibits blood clot formation
filed; phase III
lowers blood pressure in the
Riociguat phase III
lung
inhibits enzymes important for launched, additional
Nexavar
tumor growth indications in phase II/III
Oncology
inhibits enzymes important for
Regorafenib phase III
tumor growth
targeted treatment of bone Alsympca trial (phase III)
Alpharadin
metastases in prostate cancer stopped early on success
Diseases
inhibits formation of new 1st indication filed;
Eye
VEGF Trap-Eye
blood vessels phase III
Page 13 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
14. Xarelto Inhibits the Blood-clotting
Process at a Pivotal Stage
The blood coagulation cascade
Thromboembolism is the single
largest cause of morbidity and
mortality in the western world.
Anticoagulant drugs inhibit the
coagulation cascade and are the
mainstay of antithrombotic therapy.
Current treatment options have
limitations:
Xarelto
Heparin parenteral administration
Vitamin K antagonists (e.g. Warfarin)
narrow therapeutic window, slow
onset of action, unpredictable
pharmacology
Page 14 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
15. Xarelto: Addressing Medical Needs
Across a Wide Range of Patients
Indication Phase III Program Status
Stroke Prevention in
Atrial Fibrillation (AF) Filed in US, EU
VTE-Treatment Filed in EU /
US-filing early 2012e
Data late 2011e /
Sec. Prevention in ACS early 2012e
Data reported;
VTE-Prevention in
further analysis
Medically Ill Patients underway
VTE-Prevention after elective hip Launched
and knee replacement Surgery 1-4
Page 15 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
16. Xarelto Demonstrated an Excellent
Clinical Profile in Key Indications
1-4 Superior efficacy: 52% relative risk reduction*
VTE prevention after
orthopedic surgery
(RECORD 1- 4 trials)
Rates of major bleeding low. No statistically significant difference
Comparator: enoxaparin
EINSTEIN-DVT
Non-inferior efficacy - significantly improved net clinical benefit **
Composite of major and clinically relevant non major bleeding similar
DVT treatment and with numerically lower major bleedings
Extended secondary
prevention of VTE
(EINSTEIN-DVT and
Comparator: enoxaparin followed by vitamin K antagonist
EINSTEIN-Extension
Superior efficacy: 82% reduction of recurrent VTE
EINSTEIN-Extension trial)
Low incidence of major bleeding. No stat. significant difference
Comparator: placebo
Non-inferiority
vs. warfarin in ITT and per-protocol population. Active
treatment superior to warfarin in reducing the risk of stroke and non-CNS
Stroke prevention in atrial embolism in the safety population.
fibrillation Composite of major and clinically relevant non major bleeding similar
(ROCKET-AF trial) Comparator: vitamin K antagonist
Selection of clinical trial results. For full data see publications: VTE prevention after orthopedic surgery (RECORD) data published in NEJM (RECORD 1: Vol 358 2008;
RECORD 3: Vol 358 2008) and Lancet (RECORD 2: Vol 372 2008; RECORD 4: Vol 373 2009), extended sec. prevention of VTE (EINSTEIN-Ext.) and DVT treatment
(EINSTEIN-DVT) data publiashed in NEJM Vol 363 2010; stroke prevention (ROCKET-AF) data published in NEJM (online August 10, 2010)
*) Symptomatic VTE + all-cause mortality in pooled analysis of RECORD 1-4; **) Secondary outcome defined as composite of primary efficacy endpoint plus major bleeding
VTE: Venous thromboembolism; DVT: Deep vein
Page 16 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011 thrombosis; ITT: Intention to treat
17. VEGF Trap-Eye –
Addressing Major Eye Diseases
wet AMD Diabetic Macular Edema (DME)
Wet AMD is due to abnormal blood vessel Most prevalent cause of vision loss in
growth in the eye; the disease accounts for patients with diabetes.
approx. 90% of AMD-related blindness. Clinically significant DME is a leading cause
Wet AMD is the leading cause of acquired of acquired blindness in the adults aged
blindness in the elderly. <50years.
Approx. 1.5 million patients annually in the Approx. 370,000 patients suffer from clinically
US. significant DME in the US, with 95,000 new
cases / year.
Central Retinal Vein Occlusion (CRVO) myopic CNV
Obstruction of central retinal vein may lead In myopic patients, the eyeball is too long –
to vision loss and other serious this situation puts strain on retina and may
complications. lead to pathological changes (e.g. irregular
vessel growth) in the back of the eye.
> 100,000 people in the US and > 66,000
people in key EU countries are estimated to Severe myopia is common in Asia; in
suffer from CRVO. Japan, mCNV is the second most common
cause of blindness.
AMD: Age-related macular degeneration
Page 17 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
CNV: Choroidal neovascularization
18. VEGF Trap-Eye – Key Data from Clinical
Studies Suggest a Competitive Profile
Phase III program incl. 2,457 patients (VIEW 1, VIEW 2)
Wet Age-Related Macular Primary efficacy endpoint met, non-inferiority compared to Lucentis
Degeneration (wet AMD)
demonstrated
One year data demonstrated potential for less frequent dosing with
comparable vision maintenance
Phase III program incl. 354 patients (COPERNICUS, GALILEO)
Central Retinal Vein
Occlusion (CRVO)
Primary efficacy endpoint met, demonstrating significant
improvement in vision after six months of treatment compared to
sham-injections
Phase II study incl. 219 patients (DaVinci)
Diabetic Macular Edema VEGF Trap-Eye vs. laser treatment:
(DME) Primary endpoint met: Visual acuity gains over 24 weeks were
maintained or numerically improved up to completion of the study
at week 52
Phase III trial initiated
VEGF Trap-Eye was generally well tolerated and the most common adverse events were those typically
associated with intravitreal injections or the underlying disease.
Selection of clinical data. For further details see Bayer press releases from November 22, 2010, December 20, 2010 and April 27, 2011.
Further data presented at Angiogenesis Conference, Miami, Florida, February 12, 2011.
19. VEGF Trap-Eye –
Status of Clinical Program
Indication Phase III Program Status
Wet age-related macular
degeneration (AMD) Filed
Central retinal vein occlusion Filing 2012e
(CRVO)
Diabetic macular edema (DME) Phase III ongoing
Myopic choroidal
Phase III ongoing
neovascularizytion (CNV)
Page 19 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
20. Alpharadin – New Opportunities to
Treat Bone Metastases
Alpha-pharmaceutical (based on 223Radium, delivering highly energetic, short ranging
radiation) - in-licensed from Algeta
Radium as natural bone seeker targeting bone metastases
Phase III in hormone-resistant prostate cancer (HRPC)
ALSYMPCA (phase III) in patients with smptomatic HRPC with sceletal metastases
stopped early - Alpharadin demonstrated significant improvement in overall survival vs.
placebo
Filing targeted mid 2012e
Fast track status granted by FDA
Tumor cells
Newly formed
bone
Bone metastases Radium-223 deposition Radium-223: highly localized tumor cell killing
HRPC: Hormone-refractory prostate cancer
Page 20 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
21. Expected 2011 Major
Pipeline Newsflow
Project / Study When expected?
Xarelto ATLAS TIMI 51; phase III in secondary Data end 2011e /
prevention of acute coronary syndrome (ACS) early 2012
Xarelto EINSTEIN PE; phase III in treatment of PE and Data end 2011e /
secondary VTE prevention early 2012
Xarelto Potential newsflow on submissions 2011e
Nexavar Phase III in NSCLC and phase III in thyroid Completion end
cancer 2011e / 2012e
VEGF Trap-Eye Two-year data from wet AMD phase III VIEW
2011e
program
Page 21 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
22. CropScience - Innovation Leadership in
AgChemicals, Promising BioScience Pipeline
23 new agrochemical active ingredients launched,
generated sales of €2bn in 2009 2000 - 2009
Six new agrochemical substances with sales potential
of more than €1bn to be launched 2010 - 2012E
Expect 18 new BioScience products to be launched 2010 - 2016E
Numerous early-stage research and early development
projects in Crop Protection and BioScience
Page 22 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
23. Growth Platform Ag BioScience -
Strongly Expanded in 2010
Planned sales development Key growth drivers
in € million
Fast growing established business in
cotton, canola, rice and vegetables
~1,400
Planned: CAGR 12%
Regional expansion and introduction of
new varieties
>1,000
Exploit traits potential through
licensing agreements
687 Extension of our crop-portfolio to
+37%
soybean and cereals
503
Increase of BioScience’s share of
240 CropScience R&D expenditures
R&D capacities strengthened through
acquisition of Athenix (2009)
2002* 2009 2010 2015 E 2018 E
*2002 sales pro-forma Bayer + Aventis CropScience
Page 23 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
24. CropScience – Translate R&D More
Effectively Into Sales
Realign company activities with a stronger customer focus
Restructure and further invest in global marketing to enable improved
commercial execution
Extend use of state-of-the-art customer relationship management tools
Broaden food chain partnership business model
Focus on global flagship brands and deliver packaged solutions to
differentiated customer segments
Page 24 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
25. MaterialScience –
World-Class Applications Research
Bayseal ® Baytherm®
Creates a seamless air Combines high mechanical
barrier system working like a strength with high insulating
building envelope capacity and low weight
Makrolon®
DurFlex® Forming lightweight exterior
Improving noise reduction car body parts from
and economics of rail track polycarbonate
operations
Bayblend® FR Bayfol Reflex ®
A new safety concept for car Actuators out of polymers
batteries to make housings give tactile feedback precisely
flame retardant adjusted to requirements
Makrofol®ID Baycusan®
Film for ID cards providing Solvent-free polyurethane
scratch resistance and based polymers for cosmetic
protecting against counterfeit applications
Page 25 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
26. Opportunity
Emerging Markets
Page 26 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
27. Emerging Markets –
Significant Growth Momentum
2010 Group Sales break down; ∆% yoy Fx adjusted
+18%
64% 36%
+3%
Developed markets Emerging markets1
¹ Emerging markets include: Latin America, Asia w/o Japan, Australia,
Page 27 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011 New Zealand, Africa and Middle East incl. Turkey, Eastern Europe
28. BRIC - Countries Can Collectively
Become a 10bn Euro Business in 2015
Sales in € bn ~6.0bn
6
2.9bn
3
>2bn
2
1.6bn
~1.0bn
1 ~0.8bn
0.5bn 0.5bn
0
2010 2015 2010 2015 2010 2015 2010 2015
Page 28 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
29. Bayer is One of The Leading International
HealthCare Companies in China
Strong growth
Driven by Pharmaceuticals (+17% yoy)
HealthCare 2010
€823m +15% y-o-y (Fx-adj.)* Pharma portfolio includes established
branded products as well as innovative
products like Nexavar, Scilin Insulin and
Xarelto
Significant investment commitment
Approx. 5,300 employees (2010)
€100m over 5 years to set-up a global
R&D center in China
Top products growth in 2010*
Glucobay +22% Beijing manufacturing site expansion
Ultravist +16% (~€45m through 2015)
Aspirin Cardio +15%
Avelox +14% Partnership with Tsinghua University
Adalat +10% (joint drug discovery, student support)
All growth rates y-o-y Fx-adj.
* People‘s Republic of China
Page 29 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
30. CropScience in Brazil – Gained Share in
One of the World’s Largest Ag Markets
Brazil is the 2nd largest market
for CropScience
Bayer is one of the leading suppliers
and growing strongly
Bayer gained market share in each of
the past 3 years
2010 Crop Protection performance
driven by strong sales increase in
insecticides and herbicides, especially
with new products
BioScience growth driven by cotton
CropScience sales (in €m) seed
CAGR Risk management systems in place to
847 +19%
676 724 limit the potential impact of reduced
421 493
credit availability; established barter
2006 2007 2008 2009 2010 business
Page 30 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
31. €1bn New Investment Plan
at MaterialScience in China
Asia/Pacific is leading the recovery Commitment to growth in China
China already is the world’s largest PCS €2.1bn investment program in integrated
market polymer site in Shanghai, China until 2012
China is set to become the world’s largest PUR New investment of approx. €1bn in Shanghai
market by 2015 by 2016 to
Increase MDI capacity to 1,000kt/year
More than double PCS capacity to
500kt/year
Increase HDI capacity, new 50kt/year
line planned
Transfer of PCS Headquarters from
Leverkusen to Shanghai
Increasing downstream presence (investment
of €110m by 2012)
PCS = Polycarbonates
PUR = Polyurethanes
Page 31 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
32. More Innovation
Less Administration
Page 32 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
33. Restructuring Program Initiated
Contribution by Subgroup Savings Initiative
Savings and efficiency initiative at
Holding & Admin. HealthCare, CropScience and
HealthCare corporate level
~12% Annual cost savings of €800m
starting 2013, reinvestment of ~50%
One-time-charges of around €1bn by
~54%
~34% end of 2012
Plans include reductions of 4,500
people
CropScience 2,500 new hires in growth and
innovation, particularly in emerging
markets
Page 33 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
34. Efficient Use of Cash
Funding organic growth
CapEx budget 2011: €1.5bn for PPE
Deleveraging balance sheet
Compliant with single A credit rating category
Cash return to shareholders
Dividend policy: Pay out 30-40% of Core EPS
Share buyback: No priority
Acquisitions
Focus is on organic growth, complemented by bolt-on acquisitions
Page 34 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
35. Full Year 2011 –
Group Outlook
Sales ∆ Fx and portfolio adjusted, EBITDA pre-special items
2011E 2011E
2010 ∆
Original Update
Sales 4-6% 5-7% to
(Fx & portf. €35.1bn +8%
adjusted) €35-36bn €36-37bn
adj. Improve toward
€7.1bn +10% > €7.5bn
EBITDA €7.5bn
Core EPS €4.19 +15% ~10% ∽15%
Outlook depends on specific planning assumptions
as detailed in the Annual/ Quarterly Report
Page 35 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
36. Full Year 2011 –
Guidance By Subgroup – Q2 Update
Unchanged:
HealthCare Low- to mid-single digit increase of sales and small increase of
adj. EBITDA
Unchanged:
Pharma Low- to mid-single digit increase of sales and improvement of adj.
EBITDA-margin
Consumer Unchanged:
Health Mid-single digit growth of sales and adj. EBITDA
Unchanged:
High-single-digit percentage higher sales and growth of adj.
CropScience EBITDA by about 20% - or more if the season progresses well in
2nd half
Updated:
High-single-digit percentage raise of sales. Adj. EBITDA still
MaterialScience expected to increase at a higher rate than sales, although we
regard this target as increasingly ambitious. Q3’11: Sales and adj.
EBITDA in line with prior-year level
Outlook based on Fx and portfolio adj. sales and EBITDA pre-special items
Outlook depends on specific planning assumptions
Page 36 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011 as detailed in the Annual/ Quarterly Report
37. Appendix
Page 37 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
38. 2011 – R&D and CapEx Budgets
R&D 2011E: ~€3.1bn CapEx (PPE) 2011E: ~€1.5bn
HealthCare MaterialScience HealthCare MaterialScience
2.1bn 0.2bn 0.4bn 0.6bn
thereof
Pharma
1.8bn
8%
8% CropScience
26% 44%
0.7bn
24%
24%
67% 12%
67%
1%
18%
Reconciliation Reconciliation CropScience
0.05bn 0.2bn 0.3bn
€15bn R&D and Capital Investment Plan until 2013 2013
€15bn R&D and Capital Investment Program until
Page 38 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
39. HealthCare –
Business Set-up
Pharmaceuticals Consumer Care Medical Care Animal Health
• Specialty Medicine • Non-prescription • Blood glucose • Food animal
drugs monitoring systems products
• General Medicine
and accessories
• Vitamins and • Companion
nutritional • Medical devices animal products
supplements (imaging and therapeutic
procedures)
Leading positions in certain Global # 2 A leader in medical devices Global # 4
therapeutic categories
Page 39 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
40. HealthCare –
Key Data
2nd Quarter 2nd Quarter Change FY FY Change
EUR million
2010 2011 % 2009 2010 %
Sales 4,305 4,208 -2.3 15,988 16,913 +5.8
Pharmaceuticals 2,748 2,666 -3.0 10,467 10,908 +4.2
Consumer Health 1,557 1,542 -1.0 5,521 6,005 +8.8
EBIT 595 786 +32.1 2,640 1,861 -29.5
Special items (189) (51) (372) (1,169)
EBIT before special items 784 837 +6.8 3,012 3,030 +0.6
EBITDA 1,065 1,105 +3.8 4,148 4,116 -0.8
Special items (57) (51) (320) (289)
EBITDA before special items 1,122 1,156 +3.0 4,468 4,405 -1.4
EBITDA margin before special items 26.1% 27.5% 27.9% 26.0%
Gross cash flow 759 760 +0.1 3,153 2,948 -6.5
Net cash flow 666 636 -4.5 3,431 3,320 -3.2
Page 40 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
41. Crop Science –
Business Set-up
Crop Protection Environmental Science BioScience
• Insecticides • Professional Products • Seeds & Traits
• Fungicides • Consumer Products
• Herbicides
• Seed Treatment
Global # 2 The leader in this area Committed emerging player –
access to technologies
Page 41 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
42. CropScience –
Key Data
2nd Quarter 2nd Quarter Change FY FY Change
EUR million
2010 2011 % 2009 2010 %
Sales 1,884 1,943 +3.1 6,510 6,830 +4.9
Crop Protection / BioScience 1,685 1,757 +4.3 5,927 6,180 +4.3
Environmental Science 199 186 -6.5 583 650 +11.5
EBIT 187 272 +45.5 798 261 -67.3
Special items (66) (81) (219) (526)
EBIT before special items 253 353 +39.5 1,017 787 -22.6
EBITDA 314 405 +29.0 1,311 767 -41.5
Special items (66) (66) (197) (526)
EBITDA before special items 380 471 +23.9 1,508 1,293 -14.3
EBITDA margin before special items 20.2% 24.2% 23.2% 19.0%
Gross cash flow 224 304 +35.7 1,043 546 -47.7
Net cash flow 782 823 +5.2 745 1,399 87.8
Page 42 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
43. Material Science –
Business Set-up
Coatings, Adhesives,
Coatings, Adhesives,
Polycarbonates
Polycarbonates Polyurethanes
Polyurethanes Specialties
Specialties
• Application in automotive • Rigid foams are used for • Input materials for coatings,
(i.e. for weight reduction) insulation in construction, logistics adhesives
and the cold chain
• Construction • Coatings for vehicles, industrial
(i.e. integrated heat and light
• Elastic foams are used for comfort
coatings, corrosion protection
applications for furniture, car and
management) other vehicle seats and • Adhesives for various applications
• Electronics & IT mattresses
• Functional films and development
• CD/DVD/Blu-ray • Further applications include
businesses
equipment housing or structural
parts in automotive (i.e. fenders) * VOC = volatile organic compounds
Industry-leading position Industry-leading position Industry-leading position
Page 43 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
44. MaterialScience –
Key Data
2nd Quarter 2nd Quarter Change FY FY Change
EUR million
2010 2011 % 2009 2010 %
Sales 2,689 2,782 +3.5 7,520 10,154 +35.0
EBIT 228 236 +3.5 (266) 780 •
Special items 0 0 (140) 0
EBIT before special items 228 236 +3.5 (126) 780 •
EBITDA 373 372 -0.3 341 1,356 •
Special items 0 0 (105) 0
EBITDA before special items 373 372 -0.3 446 1,356 •
EBITDA margin before special items 13.9% 13.4% 5.9% 13.4%
Gross cash flow 293 288 -1.7 319 1,058 •
Net cash flow 62 (15) • 849 763 -10.1
Page 44 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
45. Reporting Events and AGM
Date Event Publication
Thursday, 3rd Quarter 2011 Results
Investor Conference Call
October 27, 2011 Stockholders’ Newsletter
China Conference 2011,
November 16-18, 2011
Shanghai
Tuesday,
Investor Conference Call 2011 Annual Report
February 28, 2012
Thursday, 1st Quarter 2012 Results
Investor Conference Call
April 26, 2012 Stockholders’ Newsletter
Friday,
Annual General Meeting
April 27, 2012
Tuesday, 2nd Quarter 2012 Results
Investor Conference Call
July 31, 2012 Stockholders’ Newsletter
Tuesday, 3rd Quarter 2012 Results
Investor Conference Call
October 30, 2012 Stockholders’ Newsletter
Page 45 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
46. Investor Relations Contacts
Dr. Alexander Rosar
Head of Investor Relations
Phone: +49-214-30-81013
E-mail: alexander.rosar@bayer.com
Dr. Jürgen Beunink Ute Menke
Phone: +49-214-30-65742 Phone: +49-214-30-33021
E-mail: juergen.beunink@bayer.com E-mail: ute.menke@bayer.com
Peter Dahlhoff Judith Nestmann
Phone: +49-214-30-33022 Phone: +49-214-30-66836
E-mail: peter.dahlhoff@bayer.com E-mail: judith.nestmann@bayer.com
Fabian Klingen Dr. Olaf Weber
Phone: +49-214-30-35426 Phone: +49-214-30-33567
E-mail: fabian.klingen@bayer.com E-mail: olaf.weber@bayer.com
Page 46 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011