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Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
Investor Handout Meet Management 2013 New York June 2013
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Investor Handout Meet Management 2013 New York June 2013

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Investor Handout provided at our Meet Management 2013 investor conference on June 11, 2013 in New York

Investor Handout provided at our Meet Management 2013 investor conference on June 11, 2013 in New York

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  • 1. Meet Management 2013 Leverkusen, June 2013 I New York Investor Handout
  • 2. • Bayer Investor Presentation • Meet Management • March 2013Page 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.
  • 3. • Bayer Investor Presentation • Meet Management • June 2013Page 1 Our Mission – Innovation and Customer Value  Bayer is an innovation company  With a strong “innovation portfolio”  Addressing new growth areas  Capable of identifying and using breakthrough innovations  Bayer is innovative in many ways: Products, technologies, processes, business models, strategies  Bayer products improve the quality of people’s lives  Bayer has an excellent understanding of human, animal and plant health, as well as of high-quality materials  Respect for people and nature is an essential part of our values Science / Innovation Better Life Science For A Better Life
  • 4. • Bayer Investor Presentation • Meet Management • June 2013Page 2 Our Business Portfolio – Leading in Its Markets Break-down excluding reconciliation Sales 2012: €39.7bn CropScience Chemical crop protection & biologicals, global #2, seeds & traits €8.4bn MaterialScience Polyurethanes and polycarbonates, global #1/2 €11.5bn HealthCare Pharmaceuticals €10.8bn, leading positions in core indications Consumer Health €7.8bn, OTC pharmaceuticals, blood glucose meters, contrast media and veterinary medicines, global #2-5 €18.6bn 22% 30% 48%
  • 5. • Bayer Investor Presentation • Meet Management • June 2013Page 3 We are Generating the Vast Majority of our Business in the Life-Sciences 22% 30% 45% 85% 15% Sales 2012 Adj. EBITDA 2012* Human Health 3% Breakdown excluding Reconciliation Material Science Animal Health Life- Sciences Material Science *EBITDA before special items Plant Health
  • 6. • Bayer Investor Presentation • Meet Management • June 2013Page 4 ¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, New Zealand, Africa and Middle East incl. Turkey, Eastern Europe 2012 Group Sales Highlights Emerging Economies In € million, ∆% yoy Fx adjusted BRIC  +13% with HealthCare +23% and CropScience +20%  +16% driven by CropScience, but also MaterialScience strong  +19% with both Consumer Health and MaterialScience +25%  +7% driven by CropScience and MaterialScience  +12% driven mainly by our Life- Science businesses Emerging Economies¹ +7% Developed Economies +3% Group €39,741m; +5% 63% Strong Presence in the Emerging Markets 37%
  • 7. • Bayer Investor Presentation • Meet Management • June 2013Page 5 Our Track Record – Delivered Growth and Performance * 2007 - 2008 from continuing operations 2007 2008 2009 2010 2011 2012 Sales (€ billion) 3.80 4.17 3.64 4.19 3 4 5 6 2007 2008 2009 2010 2011 2012 4.83 5.30 EBITDA before special items* (€ billion) Core earnings per share* (€) 20.9 21.1 20.8 20.2 20 21 22 2007 2008 2009 2010 2011 2012 20.820.8 2007 2008 2009 2010 2011 2012 EBITDA before special items margin* (%) 32.4 32.9 31.2 35.1 36.5 39.7 6.8 6.9 6.5 7.1 7.6 8.3
  • 8. • Bayer Investor Presentation • Meet Management • June 2013Page 6 Life-Science Businesses Off To A Good Start
  • 9. Q1 2013 – Total Group: Life-Sciences Commence Positively • Bayer Investor Presentation • Meet Management • June 2013Page 7 EBIT in € million +9% 1,771 1,631 Sales in € million % currency & portfolio adj. +4% 10,266 10,054 EBITDA adjusted* in € million 0% 2,4532,443 Core EPS in € +2% 1.701.67 *before special items Q1’13Q1’12 Q1’13Q1’12 Q1’13Q1’12 Q1’13Q1’12
  • 10. Full Year 2013 Outlook Projects Further Growth And Higher Earnings • Bayer Investor Presentation • Meet Management • June 2013Page 8 2012 ∆ vs. 2011 2013e Sales €39.7bn +5% +4-5% to ~€41bn* adj. EBITDA €8.3bn +9% mid-single-digit % increase Core EPS €5.30 +10% high-single-digit % increase Sales ∆ Fx and portfolio adjusted, EBITDA before special items *Assuming Fx rate of $1.29 per € Outlook depends on specific planning assumptions as detailed in the Annual Report
  • 11. • Bayer Investor Presentation • Meet Management • June 2013Page 9 Pharma: Sales Growth Acceleration Driven by New Products & Emerging Markets 2012 CAGR 2015e
  • 12. Pharma – New Products Drive Growth and Rejuvenate Portfolio • Bayer Investor Presentation • Meet Management • June 2013Page 10 86 368 ~1,000 >2,500 2011 2012 2013e 2015e Sales from new Pharma pipeline in €m Q1: 244 Xarelto: 155 Eylea: 49 Stivarga: 40 CTEPH: chronic thromboembolic pulmonary hypertension; CRVO: central retinal vein occlusion; PAH: pulmonary arterial hypertension; wAMD: wet age-related macular degeneration  Strong launch execution, targeting ~€600m sales in 2013  Roll-out in wAMD underway, approval in CRVO 2H 2013e  Launched in US and Japan, CHMP opinion 1H 2013e  Approved in the US, filed in EU (Dec. 2012)  Submitted for PAH and CTEPH (Feb. 2013), priority review in the US
  • 13. Xarelto – Development in Selected Markets • Bayer Investor Presentation • Meet Management • June 2013Page 11 Status as of mid May 2013 Germany: most successful launch ever in the cardiovascular market; market share 1 at ~33% (dabigatran ~11%, apixaban ~1%) Japan: 2-week prescription limitation lifted end of April 2013; market share 2 at ~16% (market share as of 1 st of April: 9%) France: Xarelto maintained leadership over dabigatran; market share1 increased to ~17% (dabigatran ~16%) Brazil: successful launch; market share3 ~37% (dabigatran ~17%); Xarelto with 45% new patients and 55% switchers Switzerland: excellent launch performance, making Xarelto the No. 1 in the retail market for anticoagulants; market share at ~34% US4: steady uptake; surpassing warfarin in NBRx share in the cardiology AC market: Xarelto at ~38% (warfarin ~36%, dabigatran ~12%, apixaban ~ 14%) Source: IMS; 1 sales market share anticoagulants (AC) ex manufacturer prices, retail; 2 anticoagulants retail and hospitals, 3 sales market share AC , retail; 4:marketed by J&J;
  • 14. • Bayer Investor Presentation • Meet Management • June 2013Page 12 Xofigo – A New Treatment for CRPC Patients with Bone Metastases Bone marrow Osteoclast α-particle radiation Global peak sales potential ≥ €1bn  ~900,000 men diagnosed worldwide, up to 90% develop bone metastases1  First in class alpha-pharmaceutical delivering high energy, short ranging alpha-particles  44% improvement in overall survival in phase III trial  Demonstrated delay in time to first skeletal-related event  Approved in the US for CRPC with symptomatic bone metastases and no known visceral metastatic disease  Submitted for CRPC in Europe (Dec 2012) CRPC: castration-resistant prostate cancer; 1: GLOBOCAN 2008,World Health Organization
  • 15. • Bayer Investor Presentation • Meet Management • June 2013Page 13 Strengthening Women‘s Health Business – Acquisition of Conceptus, Inc.  Bayer successfully completed the public tender offer to acquire all shares in Conceptus for $31/share (>90% tendered, transaction value of ~$1.1bn)  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)
  • 16. • Bayer Investor Presentation • Meet Management • June 2013Page 14 Aspire to Become the Leading OTC Company
  • 17. Consumer Care – Aspire to Become the World-Leading OTC Company • Bayer Investor Presentation • Meet Management • June 2013Page 15 2003 2011 2012 +6%  Built global #2 position through combination of organic growth and targeted acquisitions  Track record of performance – continued to gain share in 2012  Product portfolio of some of the world‘s most recognized brands  Further growth opportunities in selected emerging markets Sales Development* 1.4 3.5 3.9 * Sales Consumer Care segment Global #6 Global #2 In € billion, ∆% yoy Fx adjusted
  • 18. Brands Years Old 2012 Sales €m 3-Year CAGR 113 970* 7% 81 197# 12% 78 101 1% 69 196 5% 68 269 12% 40 250 9% 19 323 12% Strong Consumer Brands Build Equity for Decades • Bayer Investor Presentation • Meet Management • June 2013Page 16 *Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx) #Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus.
  • 19. Innovation at OTC – New Product Development with Aspirin • Bayer Investor Presentation • Meet Management • June 2013Page 17
  • 20. • Bayer Investor Presentation • Meet Management • June 2013Page 18 Strengthening Our OTC Business – Bayer to Acquire Steigerwald GmbH  Bayer launched an offer to acquire Steigerwald Arzneimittelwerk GmbH, with closing expected at the beginning of July 2013*  Steigerwald generated net sales of €61.3m in 2012 (~90% in Germany)  Steigerwald produces herbal drugs, its 2 core brands make ~90% of sales  Significant sales synergies expected due to our complementary CC business Iberogast®  Treatment of functional dyspepsia & irritable bowel syndrome Laif®  St John’s wort based medicine for treat- ment of depression * subject to regulatory approval
  • 21. • Bayer Investor Presentation • Meet Management • June 2013Page 19 CropScience: Targeting Above Market Growth at Benchmark Profitability 2012 CAGR 2015e
  • 22. • Bayer Investor Presentation • Meet Management • June 2013Page 20 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, soy, wheat, vegetables  Conventional seeds  GMO seeds  Traits Better harvest with improved:  Yield  Quality  Processability  Sustainability GMO: Genetically modified organism  Weed, pest & disease control  Stress tolerance
  • 23. CropScience – Translate R&D Effectively into New Product Sales • Bayer Investor Presentation • Meet Management • June 2013Page 21  Xpro (+61%) - New cereal fungicide with yield-boosting effect  Adengo herbicide family (+85%) - Excellent weed control in corn and cereals, also in case of glyphosate resistance  Belt (+54%) - Broad-spectrum insecticide with fast and long-lasting action  Launch of Luna fungicide in the US  First launch of new SeedGrowth family EverGol/Emesto in Canada 0.02 0.3 0.7 1.1 ~1.4 ~1.9 2007 2009 2011 2012 2013e 2015e +60% 2012 Highlights Sales from new Crop Protection products launched since 2006 in €bn ∆% y-o-y, () Fx adj.
  • 24. • Bayer Investor Presentation • Meet Management • June 2013Page 22 Bolt-on Acquisitions to Strengthen CropScience Portfolio Region Technology Product / Portf. Biologics  Hornbeck (04/11) €30m US Seeds, Breeding Germplasm Soybean Seeds  AgraQuest (07/12) ~€375m > 30 countries Biologics Fungicides Insecticides  Raps GbR (10/11) €26m  Wehrtec, Wehrmann (03/13) €37m + milestones Seeds Germplasm Soybean  Abbott & Cobb (07/12) ~€43m US Seeds Watermelon Melon  Prophyta (01/13) €25m (provisional) Germany Biologics Fungicides Nematicides Europe Seeds, Breeding Oilseed rape Brazil
  • 25. • Bayer Investor Presentation • Meet Management • June 2013Page 23 MaterialScience: Aspire to Earn a Premium Over Cost of Capital
  • 26. • Bayer Investor Presentation • Meet Management • June 2013Page 24 Selling Price Increases & Savings Not Sufficient to Protect Earnings  Market growth trends intact, key products with mid-single digit volume growth  High raw material prices and significant capacity additions led to global overcapacities and margin pressure  Going forward demand & supply balance expected to improve  Anticipated margin improvement supported by fresh savings from new efficiency initiative 2010 2011 2012 Sales Adj. EBITDARaw Mat. & Energy Costs CFROI In € bn 10.2 10.8 11.5 5.4 6.2 6.6 1.4 1.2 1.3 6% 6% 8%
  • 27. Profitability Improvement Through New Efficiency Initiative Until 2015 • Bayer Investor Presentation • Meet Management • June 2013Page 25 Examples Business Units  Consolidation of system houses  Pricing excellence programs Organization  Optimization of regional structures (e.g. Canada & US) Production  Further initiatives to improve asset productivity (e.g. maintenance schedules, engineering setup) Supply Chain  Optimization of logistics services Selling & Administration  Further reduce costs by leveraging established global ERP platform and standardized processes ERP: enterprise resource planning  New efficiency initiative improves cost structure and increases adjusted EBITDA margin by 150bp  Initiative comprises more than 100 measures across the entire value chain
  • 28. • Bayer Investor Presentation • Meet Management • June 2013Page 26 … and Optimistic for Future Developments years
  • 29. • Bayer Investor Presentation • Meet Management • June 2013Page 27 Solid Start to 2013 – Track Record of Performance Expected to Continue  Business performance predominantly driven by HealthCare and CropScience contributing 70% of sales and 85% of earnings  Significant new product opportunities at our Life-Science businesses  Continued strong emerging markets business momentum  Full-year 2013 group outlook projects higher sales and earnings  Aspire to grow HealthCare and CropScience by 6% CAGR until 2015
  • 30. • Bayer Investor Presentation • Meet Management • June 2013Page 28 Appendix
  • 31. • Bayer Investor Presentation • Meet Management • June 2013Page 29 Priority 2012 Target 2013* Aspiration 2015  HealthCare: Accelerate sales growth €18.6bn  Pharma: Successfully commercialize new products and realize emerging markets (EM) opportunity  New product sales¹  EM growth  Consumer Health: Aspire to become #1 OTC company €7.8bn ~€9bn  HealthCare: Improve margins  Pharma  Consumer Health 27.5% 29.9% 24.2% slightly up slightly up at level towards 29% ≥31% ~25% HealthCare – Building Growth Momentum, Improving Margins ¹ Xarelto, Eylea, Stivarga, Radium-223 dichloride and Riociguat; subject to regulatory approval *Assuming Fx rate of $1.29 per € Outlook depends on specific planning assumptions as detailed in the Annual Report €10.8bn €368m 7.3% mid-single-digit % to ~€11bn ~€1bn high-single digit % CAGR ~7% towards €13bn >€2.5bn high-single digit % CAGR ~6% towards €22bn mid-single-digit % to ~€8bn mid-single-digit % to ~€19bn Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
  • 32. Q1 2013 – HealthCare: New Products and Consumer Care Drive Growth • Bayer Investor Presentation • Meet Management • June 2013Page 30 *before special items Q1 2013 Sales Earnings Pharma +2% (+5%) Consumer Health +3% (+5%) 36% HealthCare €4,443m; +2% (+5%) 2,5641,879 Price +1% Volume +4% Fx -3% Portfolio 0% In € million, ∆% yoy, () = Fx & portf. adjusted Q1‘12 Q1‘13 Q1‘12 Q1‘13 740 832 441 445 +12% +1% 1,181 1,277 +8% 341 +1% 861 953 +11% 520 343 Adj. EBITDA* Adj. EBIT* 610 +17%
  • 33. Full Year 2012 – HealthCare • Bayer Investor Presentation • Meet Management • June 2013Page 31 *before special items 2012 Sales Earnings Pharma +9% (+4%) Consumer Health +8% (+4%) 36% HealthCare €18,604m; +8% (+4%) 10,7987,806 Price 0% Volume +4% Fx +4% Portfolio 0% In € million, ∆% yoy, () = Fx & portf. adjusted FY‘11 FY‘12 FY‘11 FY‘12 2,972 3,233 1,730 1,886 +9% +9% 4,702 5,119 +9% 1,325 +10% 3,367 3,788 +13% 2,042 1,460 Adj. EBITDA* Adj. EBIT* 2,328 +14%
  • 34. • Bayer Investor Presentation • Meet Management • June 2013Page 32 CropScience – Above Market Growth at Benchmark Profitability Priority 2012 Target 2013* Aspiration 2015  Above-market sales growth +12.4% to €8.4bn high-single digit % towards €9bn CAGR ~6% towards €10bn  Translate R&D effectively into new product sales (CP products launched since 2006) €1.1bn ~€1.4bn ~€1.9bn  Extend seeds footprint +14%  Maintain industry leading profitability level 24.2% slight improvement ~24% Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales double-digit % growth p.a. CP: Crop Protection *Assuming Fx rate of $1.29 per € Outlook depends on specific planning assumptions as detailed in the Annual Report double-digit % growth
  • 35. Q1 2013 – CropScience: ContinuouslyStrong In Favorable Market Environment • Bayer Investor Presentation • Meet Management • June 2013Page 33 Crop Protection +9% (+11%) Environmental Science -12% (-10%) Seeds +1% (0%) Q1 2013 Sales Earnings In € million, ∆% yoy, () = Fx & portf. adjusted CropScience €2,764m; +6% (+7%) Price +3% Volume +4% Fx -2% Portfolio 0% 2,111 Q1‘12 Q1‘13 Q1‘12 Q1‘13 984 1,081 +10% 864 969 +12% Adj. EBITDA* Adj. EBIT* 164 489 *before special items
  • 36. Full Year 2012 – CropScience • Bayer Investor Presentation • Meet Management • June 2013Page 34 Crop Protection +16% (+13%) Environmental Science +9% (+5%) *before special items Seeds +17% (+14%) 2012 Sales Earnings In € million, ∆% yoy, () = Fx & portf. adjusted CropScience €8,383m; +16% (+12%) Price +1% Volume +12% Fx +4% Portfolio -1% 6,741 FY‘11 FY‘12 FY‘11 FY‘12 1,654 2,026 +22% 1,168 1,543 +32% Adj. EBITDA* Adj. EBIT* 680 962
  • 37. • Bayer Investor Presentation • Meet Management • June 2013Page 35 Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales *Assuming Fx rate of $1.29 per € #after reproduction Outlook depends on specific planning assumptions as detailed in the Annual Report MaterialScience – Higher Asset Utilization & Efficiency Measures Are Driving Performance 2012 Target 2013 Aspiration 2015  Sales +2.9% to €11.5bn (volumes +2%)  Adj. EBITDA +8% to €1,262m  CFROI# 5.7% < WACC 7.1%  Sales to slightly increase to ~€12bn  Adj. EBITDA to match 2012 figure  Q2‘2013 vs Q1‘2013: Sales to increase and adj. EBITDA to significantly increase  Grow business (volume) above global GDP  Defend market leading positions in PCS and PUR  Realize 150 bp margin contribution through new efficiency initiative  Optimize asset structure in Germany  CFROI# > WACC
  • 38. • Bayer Investor Presentation • Meet Management • June 2013Page 36 Q1 2013 – MaterialScience: Cost Pressure Prevented A Better Performance **CAS: Coatings, Adhesives, Specialties *** IO: Industrial Operations Polyurethanes +3% (+4%) Polycarbonates -6% (-6%) CAS** -3% (-3%) Q1 2013 Sales Earnings In € million, ∆% yoy, () = Fx & portf. adjusted *before special items MaterialScience €2,775m; +0% (+0%) Price +4% Volume -4% Fx -1% Portfolio 0% 1,469 663 IO*** +0% (+1%) Q1‘12 Q1‘13 Q1‘12 Q1‘13 Adj. EBITDA* Adj. EBIT* 279 204 -27% 121 43 -65% 467 176
  • 39. Full Year 2012 – MaterialScience • Bayer Investor Presentation • Meet Management • June 2013Page 37 **CAS: Coatings, Adhesives, Specialties *** IO: Industrial Operations 2012 Sales Earnings In € million, ∆% yoy, () = Fx & portf. adjusted *before special items MaterialScience €11,491m; +6% (+3%) Price +1% Volume +2% Fx +4% Portfolio -1% 5,987 FY‘11 FY‘12 FY‘11 FY‘12 Adj. EBITDA* Adj. EBIT* 1,171 1,262 +8% 589 613 +4% Polycarbonates -3% (-7%) CAS** +3% (+4%) 2,819 IO*** +8% (+6%) 1,972 714 Polyurethanes +12% (+8%)
  • 40. • Bayer Investor Presentation • Meet Management • June 2013Page 38 Q1 2013 – Regional Performance: Growth Led by USA and Emerging Economies Africa & Middle East Eastern Europe Emerging Economies Emerging Economies¹ +7% Others² +8% USA +8% Western Europe -3% Q1 2013 Group Sales by Region Group €10,266m; +4% ~1,000 +8% ~1,400 +8% ~400 -7%~700 +13% 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 34% 12%32% 22% Latin America Emerging Asia³
  • 41. Full Year 2012 – Regional Performance • Bayer Investor Presentation • Meet Management • June 2013Page 39 Africa & Middle East Eastern Europe Emerging Economies Emerging Economies¹ +7% Others² +4% USA +9% Western Europe 0% 2012 Group Sales by Region Group €39,741m; +5% ~4,900 +12%~5,700 +5% ~1,800 0%~2,400 +10% ¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, New Zealand, Africa and Middle East incl. Turkey, Eastern Europe ² Others = Japan, Australia, New Zealand, Canada ³ Emerging Asia = Asia w/o Japan, Australia, New Zealand In € million, ∆% yoy Fx adjusted 37% 11% 31% 21% Latin America Emerging Asia³
  • 42. • Bayer Investor Presentation • Meet Management • June 2013Page 40 Q1 2013 – Cash Flow And Net Debt Development +€491m 7.5 GCF oFCF 1,807 Invest- ments 365 (38) ∆ y-o-y +13% -100% NCF 327 +38% +43% Dec 31, 2012 Mar 31, 2013 7.0 Q1 2013 Cash Flow Net Debt Development Cash Flow in € million, Net Debt in € billion
  • 43. Full Year 2012 – Cash Flow and Net Debt Development • Bayer Investor Presentation • Meet Management • June 2013Page 41 +€9m 7.0GCF oFCF 4,556 Invest- ments 1,930 2,601 ∆ y-o-y -12% -24% NCF 4,531 -10% +20% Dec 31, 2011 Dec 31, 2012 7.0 2012 Cash Flow Net Debt Development Cash Flow in € million, Net Debt in € billion
  • 44. Investor Handout – Meet Management Bayer HealthCare June 2013 – New York
  • 45. Leading Positions in Key Healthcare Markets • Bayer Investor Presentation • Meet Management • June 2013Page 43 Pharma €10,798m  Leading positions in key therapeutic categories Consumer Care €3,853m  Global #2 in OTC-pharmaceuticals, ~€0.3bn dermatology business Medical Care €2,650m  #1 in fluid injection systems, #1 in contrast media, #4 in blood glucose meters Animal Health €1,303m  Global #5, #2 in parasiticides Sales Split by Segment 2012 25% 58% 7% 21% 14% HealthCare €18,604m
  • 46. Full Year 2012 – Growth in All Segments • Bayer Investor Presentation • Meet Management • June 2013Page 44 *before special items 2012 Sales Earnings Pharma +9% (+4%) Consumer Health +8% (+4%) 36% HealthCare €18,604m; +8% (+4%) 10,7987,806 Price 0% Volume +4% Fx +4% Portfolio 0% In € million, ∆% yoy, () = Fx & portf. adjusted 2011 2012 2011 2012 2,972 3,233 1,730 1,886 +9% +9% 4,702 5,119 +9% 1,325 +10% 3,367 3,788 +13% 2,042 1,460 Adj. EBITDA* Adj. EBIT* 2,328 +14%
  • 47. Full Year 2012 – Strong Business Momentum in Emerging Markets • Bayer Investor Presentation • Meet Management • June 2013Page 45 Emerging Economies 25% 2012 Sales Latin America Eastern Europe Africa & Middle East ~2,100 +12% ~2,100 +8% ~1,100 +9% ~900 +1% 24% USA +6% 29% 33% 14% Sales in € million; ∆% y-o-y Fx adjusted Emerging Economies¹ +8% Emerging Asia³ Western Europe -1% Others² +1% HealthCare €18,604m 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 without Japan, Australia, New Zealand
  • 48. • Bayer Investor Presentation • Meet Management • June 2013Page 46 New Products Drive Pharma Growth and Rejuvenate Portfolio Peak Sales Potential* * from 5 new products
  • 49. New Product Pipeline • Bayer Investor Presentation • Meet Management • June 2013Page 47 *Combined peak sales potential for Xarelto, Stivarga, Eylea, Radium-223 dichloride and Riociguat assuming approvals and launches planned Combined* Peak Sales Potential >€5.5bn First launches in first / main indication* Rivaroxaban AfliberceptRegorafenib Radium-223 dichloride Riociguat 2011 2012 2012 2013 2013e
  • 50. • Bayer Investor Presentation • Meet Management • June 2013Page 48 New Products Drive Growth and Rejuvenate Portfolio 86 368 ~1,000 >2,500 2011 2012 2013e 2015e Sales from new Pharma pipeline in €m Q1: 244 Xarelto: 155 Eylea: 49 Stivarga: 40 CTEPH: chronic thromboembolic pulmonary hypertension; CRVO: central retinal vein occlusion; PAH: pulmonary arterial hypertension; wAMD: wet age-related macular degeneration  Strong launch execution, targeting ~€600m sales in 2013  Roll-out in wAMD underway, approval in CRVO 2H 2013e  Launched in US and Japan, CHMP opinion 1H 2013e  Launched in the US, filed in EU (Dec. 2012)  Submitted for PAH and CTEPH (Feb. 2013), priority review in the US
  • 51. Xarelto – Effective Anticoagulation For More Patients • Bayer Investor Presentation • Meet Management • June 2013Page 49 Peak sales potential > €2bn SPAF: prevention of stroke and systemic embolism in patients with non- valvular atrial fibrillation; DVT: deep vein thrombosis; VTE: venous thromboembolism; ACS: acute coronary syndrome Peak sales potential > €2bn  Breadth of indications: met or exceeded primary efficacy endpoint in 11/11 phase III studies  Further phase III trials initiated, for example in the prevention of major adverse cardiac events in patients with coronary or peripheral artery disease 1) Clinical 2) Regulatory  VTE prevention following total knee/hip replacement surgery  Stroke prevention in patients with atrial fibrillation (SPAF)  Treatment of DVT, PE and to reduce the risk of recurrent DVT and PE  Approved for secondary prevention after ACS in Europe  Filed for sec. prevention of ACS in the US (Complete Response Letter March 2013) 3) Marketing
  • 52. Xarelto – Strong Launch Execution • Bayer Investor Presentation • Meet Management • June 2013Page 50 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 272 23 US* Ex-US 31 Sales in € million; ∆% Fx adj. 8 34 42 8 57 68 11 67 81 14 109 131 22 *Bayer reporting, not reflecting in-market sales  Sales 2012: €322m, exceeded target  Sales advanced strongly in all regions following further product launches and indication expansions  Most successful launch ever in the German cardiovascular market  Sales target 2013: ~€600m 22 133 155
  • 53. Xarelto – Development in Selected Markets • Bayer Investor Presentation • Meet Management • June 2013Page 51 Status as of mid May 2013 Germany: most successful launch ever in the cardiovascular market; market share 1 at ~33% (dabigatran ~11%, apixaban ~1%) Japan: 2-week prescription limitation lifted end of April 2013; market share 2 at ~16% (market share as of 1 st of April: 9%) France: Xarelto maintained leadership over dabigatran; market share1 increased to ~17% (dabigatran ~16%) Brazil: successful launch; market share3 ~37% (dabigatran ~17%); Xarelto with 45% new patients and 55% switchers Switzerland: excellent launch performance, making Xarelto the No. 1 in the retail market for anticoagulants; market share at ~34% US4: steady uptake; surpassing warfarin in NBRx share in the cardiology AC market: Xarelto at ~38% (warfarin ~36%, dabigatran ~12%, apixaban ~ 14%) Source: IMS; 1 sales market share anticoagulants (AC) ex manufacturer prices, retail; 2 anticoagulants retail and hospitals, 3 sales market share AC , retail; 4:marketed by J&J;
  • 54. Xarelto Uptake • Bayer Investor Presentation • Meet Management • June 2013Page 52 Source: IMS 1: Ex-Mnf Sales Market Share (incl. PI) in all dosage strengths and pack sizes, 2: Sales Market Share (Ret+Hosp) in %, 3: Retail Sales Market Share, marketed by J&J Germany1 Japan2 United States3 Xarelto Pradaxa Eliquis Jan 2012 34% 16% <1% June 2012 May 2013 May 2013 0% 10% 20% 30% 40% 50% Jan 2012 33% 11% 1% May 2013 20% 22% 1.5%
  • 55. Eylea – Targeting Different Eye Diseases • Bayer Investor Presentation • Meet Management • June 2013Page 53 1: as measured on the Early Treatment Diabetic Retinopathy Scale; 2: Regeneron has US marketing rights; AMD: age-related macular degeneration; CRVO: central retinal vein occlusion; mCNV: myopic choroidal neovascularization  Bayer has marketing rights ex-US2, launched in first markets in wet AMD end 2012  First launches in CRVO planned for 2H 2013 1) Clinical 2) Regulatory 3) Marketing  Positive phase III data in wet AMD and CRVO reported  Positive phase III in mCNV (mean improvement of 12 letters in best-corrected visual acuity1 from baseline at week 24 vs. a loss of 2 letters in sham control (p<0.0001))  Data from phase III studies in DME 2H 2013e  Filed for CRVO in EU (Dec 2012) and Japan (Jan 2013)  Filing in mCNV 2H 2013e Peak sales potential ≥ €1bn
  • 56. Eylea – Developed for the Treatment of Various Back of the Eye Diseases • Bayer Investor Presentation • Meet Management • June 2013Page 54 Eylea has been in-licensed from Regeneron; Bayer has exclusive marketing rights ex-US patient numbers are Bayer estimates Wet age-related macular degeneration (wet AMD)  One of the leading cause of severe vision loss  Globally an estimated 12 million patients in the 50+ age group Diabetic macular edema (DME)  The most frequent cause of blindness in young and mid-aged adults  Globally the treatable patient population for DME is estimated ~6.2 million Central retinal vein occlusion (CRVO)  90% occur in patients aged ~50, it can affect all ages  A common retinal vascular disorder affecting ~2.5 million people globally Myopic choroidal neovascularization (myopic CNV)  High prevalence in Asian population  In Japan and China treatable population of mCNV is approx. 2 million, with approx. 0.2 million new cases/year
  • 57. Stivarga – Major Progress in Our Oncology Portfolio • Bayer Investor Presentation • Meet Management • June 2013Page 55 mCRC: metastatic colorectal cancer; mGIST: metastatic gastrointestinal stromal tumors; HCC: hepatocellular carcinoma 1) Clinical  Positive phase III data in mCRC and mGIST  Phase III in 2nd line HCC initiated (RESORCE) (May 2013)  Phase III in colorectal cancer (adjuvant therapy) expected to start 2H 2013 2) Regulatory 3) Marketing  Launched in mCRC (Sep 2012) / mGIST (Feb 2013) in the US  Launched in mCRC in Japan (May 2013) Peak sales potential ≥ €1bn  Filed for mCRC in EU - CHMP opinion expected 1H 2013  Filing for mGIST in Europe planned after expected approval in mCRC  Filed for mGIST in Japan (priority review) (Feb 2013)
  • 58. Stivarga – Three Dimensional Mode of Action • Bayer Investor Presentation • Meet Management • June 2013Page 56  Regorafenib is an oral tumor deactivation agent that potently blocks multiple protein kinases, including kinases involved in:  Tumor angiogenesis (VEGFR1, -2, -3, TIE2)  Oncogenesis (KIT, RET, RAF-1, BRAF, BRAFV600E)  Tumor microenvironment (PDGFR, FGFR) Inhibition of neoangiogenesis Inhibition of tumor microenvironment signals Inhibition of proliferation of certain tumor cells VEGFR: vascular endothelial growth factor receptor; TIE2: tyrosine kinase with immunoglobulin-like and EGF-like domains ; PDGFR: platelet derived growth factor receptor; FGFR: fibroblast growth factor receptor;
  • 59. Xofigo – A New Treatment for Prostate Cancer Patients with Bone Metastases • Bayer Investor Presentation • Meet Management • June 2013Page 57 1) Clinical  Phase III study in CRPC patients with bone metastases stopped early on success  Studies in earlier settings of prostate cancer, including combination studies and studies in other tumors (such as breast cancer and osteosarcoma) planned 2) Regulatory 3) Marketing  Launched in the US Peak sales potential ≥ €1bn  Approved in the US for patients with CRPC and symptomatic bone metastases  Submitted for treating bone metastases in patients with CRPC in Europe CRPC: castration-resistant prostate cancer
  • 60. Xofigo – Unique Mode of Action • Bayer Investor Presentation • Meet Management • June 2013Page 58  First in class alpha-pharmaceutical delivering high energy, short ranging alpha-particles  ~900,000 men diagnosed worldwide, up to 90% have radiological evidence of bone metastases1  Demonstrated 44% improvement in overall survival in phase III trial  Demonstrated delay in time to first skeletal-related event CRPC: castration-resistant prostate cancer 1: GLOBOCAN, World Health Organization Bone marrowTumor cells Osteoclast Osteoblast α-particle radiation Targets new bone, e.g. bone metastases Irradiates adjacent tumour cells leading to highly localized tumor cell killing Radium-223 deposition Newly formed bone
  • 61. Riociguat – Addressing Unmet Medical Need in Pulmonary Hypertension • Bayer Investor Presentation • Meet Management • June 2013Page 59 6MWDT: 6 Minutes walking distance test , CTEPH: chronic thromboembolic pulmonary hypertension, PAH: pulmonary arterial hypertension, sGC soluble guanylate cyclase Peak sales potential > €500m 1) Clinical  Phase III in PAH (PATENT-1) successfully completed  Phase III in CTEPH (CTEPH) successfully completed showing Riociguat to be the first ever drug demonstrating clinical efficacy in a placebo- controlled trial 2) Regulatory  Submitted for PAH and CTEPH in the US - priority review granted (April 2013)  Submitted for PAH and CTEPH in Europe (Feb 2013)
  • 62. • Bayer Investor Presentation • Meet Management • June 2013Page 60 Riociguat – Demonstrated Efficacy in PAH and CTEPH Sec. endpoints for 1) and 2): Pulmonary vascular resistance; N-terminal pro brain natriuretic peptide; World health organization functional class; for 1) additionally: Time to clinical worsening; Borg dyspnea score CHEST-1 enrolled patients with CTEPH either inoperable or with persistent or recurrent pulmonary hypertension after surgery Phase III in PAH (PATENT-1) ● Primary efficacy endpoint met – 6MWD improved by 36m from baseline after 12 weeks compared with placebo (p<0.0001) ● Statistical significant effect demonstrated across sec. endpoints1 in both treatment- naïve and pre-treated patients ● Riociguat was generally well tolerated with a good safety profile ● A first analysis of the long-term extension study (PATENT-2) showed that efficacy benefits were improved and sustained and that Riociguat was well tolerated with a good long-term safety profile Phase III in CTEPH (CHEST-1) ● Primary efficacy endpoint met – 6MWD improved by 46m from baseline after 16 weeks compared with placebo (p<0.0001) ● Significant improvement observed in relevant sec. endpoints2 ● Riociguat was generally well tolerated with a good safety profile ● First interim analysis of the long-term extension study (CHEST-2) showed further increase in 6MWD in former Riociguat patients and in former placebo patients compared to CHEST-1 baseline CTEPH: chronic thromboembolic pulmonary hypertension, PAH: pulmonary arterial hypertension, 6MWD: Six minute walking distance
  • 63. Forms and Epidemiology of Pulmonary Hypertension • Bayer Investor Presentation • Meet Management • June 2013Page 61 CTEPH~20,000 PH owing to lung disease~410,0002 ~30,000 PH-LVD~240,000  Pulmonary hypertension (PH) encompasses multiple disease subtypes but approved treatments are only indicated for pulmonary arterial hypertension (PAH)  ~700,000 patients diagnosed1 with diseases related to / including PH. Thereof ~300,000 patients potentially eligible for PH treatment 1Diagnoses estimated in 2009 in US, EU5, J; 2Thereof ~ <20% could be treated for PH CTEPH: Chronic thromboembolic pulmonary hypertension LVD: left ventricular disease PAH
  • 64. • Bayer Investor Presentation • Meet Management • June 2013Page 62 Pharma Product Portfolio
  • 65. Top 10 Pharma Product Performance in 2012 • Bayer Investor Presentation • Meet Management • June 2013Page 63 FY 2012 sales in € million (∆% yoy Fx-adj.) YAZ-family Betaseron Kogenate Adalat Glucobay Avelox Nexavar Mirena Xarelto Aspirin C. +4% +5% -5% +4% +9% -2% -5% +12% +4% +266% 1,216 1,182 1,045 677 322 486 792 670 476 408 Multiple Sclerosis Hemophilia A Contraception Cancer Contraception Hypertension Antiinfective MI prevention Diabetes Anticoagulation MI: Myocardial infarction
  • 66. Leader in Women’s HealthCare • Bayer Investor Presentation • Meet Management • June 2013Page 64 Yaz family Sales ∆% y-o-y, () Fx adj. Women’s Healthcare 2012 €3,154m +5% (+2%) +17 (+9)Mirena +7 (+5)Diane -2 (-5) +37 (+35)Qlaira Other products +13 (+10) 0 (-1)Microgynon -31 (-31)Valette -8 (-8)Meliane +6 (+4)Angeliq
  • 67. • Bayer Investor Presentation • Meet Management • June 2013Page 65 YAZ / Yasmin Product Family – A Changing Competitive Environment  YAZ / Yasmin fully genericised in the US  Ongoing genericization in Europe expected to impact sales going forward  Growth in Asia and Latin America only partly compensating for the decline  Life-cycle management opportunities with limited commercial potential  2013 sales target: mid-to-high single- digit % decline Sales in € million; ∆% Fx adj. 2010 2011 2012 265 846 179 891 190 855 US Rest of the world 1,111 1,070 1,045-5%
  • 68. Mirena – The Leading Hormonal Long- Acting Contraceptive • Bayer Investor Presentation • Meet Management • June 2013Page 66  Intrauterine device, containing levonorgestrel, for reversible long-term contraception  Life-cycle opportunities:  Small low-dose long-acting (up to 3 years) device:  Jaydess: successful conclusion of EU registration  Skyla: US-launch in Feb. 2013  Phase III underway for LCS 16 - a long-acting (up to 5 years), low-dose, small contraception device  2013 sales target: high-single to low- double-digit % increase Sales in € million; ∆% Fx adj. 2010 2011 2012 285 254 313 268 385 292 US Rest of the world 539 581 677+9%
  • 69. 2010 2011 2012 Hemophilia Franchise – Stable Growth • Bayer Investor Presentation • Meet Management • June 2013Page 67  Global # 2 in hemophilia A treatment  Competitive development program in hemophilia underway:  Phase III with long-acting Factor VIII (BAY 94-9027)  Phase III with product from plasma-free process (BAY 81- 8973)  2013 sales target: low-single-digit % increase Sales in € million; ∆% Fx adj. 299 705 290 785 332 850 US Rest of the world 1,004 1,075 1,182+5%
  • 70. Betaseron – Long-term Experience in Multiple Sclerosis Treatment • Bayer Investor Presentation • Meet Management • June 2013Page 68  First interferon launched in multiple sclerosis, introduced in 1993  Demonstrating excellent efficacy and tolerability  21-year long-term follow-up study demonstrated significant survival advantage with Betaseron treatment  2013 sales target: high-single-digit % decline  Franchise expected to erode further due to increasing competition, including new oral MS treatments Sales in € million; ∆% Fx adj. 2010 2011 2012 473 733 447 670 578 638 US Rest of the world 1,206 1,117 1,216+4%
  • 71. Nexavar – Our Cornerstone in Oncology • Bayer Investor Presentation • Meet Management • June 2013Page 69  Approved for kidney cancer (RCC) and for liver cancer (HCC)  Only approved drug with overall survival benefit in HCC  Positive phase III data in radioactive iodine refractory differentiated thyroid cancer (DECISION-trial)  Phase III trials in:  Breast cancer  RCC (adjuvant)  HCC (adjuvant)  2013 sales target: mid-single-digit % increase Sales in € million; ∆% Fx adj. 2010 2011 2012 174 531 174 551 204 588 US Rest of the world 705 725 792+4%
  • 72. Nexavar – Positive Phase III Results in Thyroid Cancer • Bayer Investor Presentation • Meet Management • June 2013Page 70 RAI: radioactive iodine; DTC: differentiated thyroid cancer HR: hazard ratio, CI: confidence interval; PR: partial response Filing for RAI-refractory differentiated thyroid cancer planned for mid 2013  High unmet medical need in patients with locally advanced, metastatic RAI-refractory DTC  Met primary endpoint of improving PFS vs. placebo  Response rate (all PR) in the sorafenib vs. placebo arms was 12.2% and 0.5% (p<0.0001)  Safety and tolerability generally consistent with known profile of Nexavar Placebo Sorafenib 5.8 months Primary endpoint met 10.8 months Medianprogression-freesurvival HR: 0.587 CI 0.454- 0.758 p<0.0001
  • 73. Aspirin – More Than A Century of Growth • Bayer Investor Presentation • Meet Management • June 2013Page 71  One of the world’s most recognized brands  Available as OTC and Rx Aspirin  Bayer’s #1 product in Emerging Markets  Aspirin grew 17% in 2012 in the Emerging Markets  Aspirin grew 39% in 2012 in China Sales in € million; ∆% Fx adj. 2010 2011 2012 358 418 404 471 476 494 Rx-Aspirin OTC-Aspirin 776 875 970+6%
  • 74. • Bayer Investor Presentation • Meet Management • June 2013Page 72 Global Leader in Consumer Health
  • 75. Consumer Care – Best-Selling Products in 2012 • Bayer Investor Presentation • Meet Management • June 2013Page 73 FY 2012 sales in € million (∆% yoy Fx-adj.) OTC portfolio includes 10 brand families with sales >€100m 323 269 250 196 146 130 122 101 +6% +5% +14% +8% +4% +3% +8% +5% +8% +17%197# *Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx) #Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus. 970* = Rx Sales
  • 76. Consumer Care – Gained Share in 2012 • Bayer Investor Presentation • Meet Management • June 2013Page 74  Global #2 with a portfolio of some of the world’s most recognized brands  Track record of performance  Continued market share gains Highlights Sales in € million; ∆% Fx & portfolio adj. 3,020 3,080 3,371 3,534 3,853 2008 2009 2010 2011 2012 +6%
  • 77. Animal Health – A Top Player in an Attractive Market • Bayer Investor Presentation • Meet Management • June 2013Page 75 Sales in € million; ∆% Fx & portfolio adj.  Global #5 in a growing market  #3 in companion animal products (CAP)  #6 in food animal products (FAP)  Leading parasiticide-portfolio  Broadened portfolio and marketing reach by acquisition of Bomac and TEVA Animal Health Highlights 963 977 1,120 1,186 1,303 2008 2009 2010 2011 2012 +4%
  • 78. Radiology & Interventional – Combining Medrad and Diagnostic Imaging • Bayer Investor Presentation • Meet Management • June 2013Page 76 Medrad:  Clear #1  Active in fluid injection systems for contrast media and endovascular devices  Business strengthened around strategic core through adjacent acquisitions of Possis (thrombectomy) and Pathway (mechanical atherectomy) Diagnostic Imaging:  Market leader in contrast media  Synergy creation – similar centers/physicians Highlights 1,323 1,363 1,474 1,498 1,606 2008 2009 2010 2011 2012 Sales in € million; ∆% Fx & portfolio adj. * pro forma sales +1%
  • 79. Diabetes Care – Global Player in Blood Glucose Meters • Bayer Investor Presentation • Meet Management • June 2013Page 77  Global #4 in blood glucose meters  Latest innovation products include CONTOUR™ USB meter with  Plug & play technology for instant access to patterns and trends  Patients can share data with their healthcare professional Highlights Sales in € million; ∆% Fx & portfolio adj. 956 1,000 993 1,002 1,047 2008 2009 2010 2011 2012 +4%
  • 80. • Bayer Investor Presentation • Meet Management • June 2013Page 78 HealthCare: Building Growth Momentum – Improving Margins 2012 CAGR 2015e
  • 81. HealthCare – Building Growth Momentum, Improving Margins • Bayer Investor Presentation • Meet Management • June 2013Page 79 Priority 2012 Target 2013* Aspiration 2015  HealthCare: Accelerate sales growth €18.6bn  Pharma: Successfully commercialize new products and realize emerging markets (EM) opportunity  New product sales¹  EM growth  Consumer Health: Aspire to become #1 OTC company €7.8bn ~€9bn  HealthCare: Improve margins*  Pharma  Consumer Health 27.5% 29.9% 24.2% slightly up slightly up at level towards 29% ≥31% ~25% €10.8bn €368m 7.3% mid-single-digit % to ~€11bn ~€1bn high-single digit % CAGR ~7% towards €13bn >€2.5bn high-single digit % CAGR ~6% towards €22bn mid-single-digit % to ~€8bn mid-single-digit % to ~€19bn Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales ¹ Xarelto, Eylea, Stivarga, Xofigo and Riociguat; subject to regulatory approval *Assuming Fx rate of $1.29 per € Outlook depends on specific planning assumptions as detailed in the Annual Report
  • 82. • Bayer Investor Presentation • Meet Management • June 2013Page 80 Life-Cycle and Pipeline Opportunities Require Additional R&D Investments  Target range for Pharma R&D to sales ratio of 15-17%  Newly launched products will increase maintenance costs (e.g. medical, regulatory, safety) included in R&D  New Pharma products with significant life- cycle opportunities e.g.:  Xarelto – Prevention of major adverse cardiac events (COMPASS)  Stivarga – Adjuvant mCRC; 2nd line HCC  Xofigo – Earlier settings of prostate cancer; other cancers Sales and R&D in € billion 2011 2012 Sales R&D expenses 2.0 9.9 10.8 1.6 1.6 R&D to sales ratio 16% 14% mCRC: metastatic colorectal cancer; HCC: hepatocellular carcinoma
  • 83. Expected Major Pipeline Newsflow 2013 • Bayer Investor Presentation • Meet Management • June 2013Page 81 Pipeline Project Newsflow Timeframe Eylea Phase III study in mCNV (MYRROR) Data expected 1H 2013 Phase III study in DME (VIVID-DME) Data expected 2H 2013 Xofigo Initiation of additional clinical studies 2013e Regulatory decision mCRPC EU End 2013e / early 2014e Riociguat Update on potential next steps in the development program 1H 2013e Regulatory decision US 2H 2013e (PDUFA date in October) Nexavar Phase III breast cancer (RESILIENCE) Data expected Q1 2014 Filing in thyroid cancer 2013e Stivarga CHMP opinion mCRC EU 1H 2013e Filing mGIST EU Planned after approval in mCRC in EU BAY 94-9027 Phase III study in hemophilia A Data expected early 2014 
  • 84. Investor Handout – Meet Management Bayer’s OTC Business June 2013 – New York
  • 85. Bayer’s Consumer Care Business  #2 player in large and growing global OTC market  2012 revenue: €3.9bn, thereof OTC €3.5bn  Strong portfolio of well-known consumer brands − 10 brands with > €100m in revenue each  Proven track record of outperforming OTC market − 5-year CAGR of ~6% versus market CAGR of 3-4%  Well-defined strategies to achieve #1 position in global OTC market − Maximize brand potential via geographic expansion − Focus on new product innovation − Expand footprint in emerging markets − Seek strategic acquisitions and alliances • Bayer Investor Presentation • Meet Management • June 2013Page 83
  • 86. Leading Positions in Key OTC Categories • Bayer Investor Presentation • Meet Management • June 2013 Cardio #1 Vitamins, Minerals #2 & Supplements Analgesics #2 Dermatologicals #2 Gastrointestinals #6 Cold, Allergy, Sinus & Flu >#10 4% 30% 24% 22% 12% 8% *Source: IMS; Rankings based on branded players Bayer OTC Sales by Category 2012 Position by Category 2012* €3.5bn Page 84
  • 87. Bayer is #2 Player in a Highly Fragmented OTC Market • Bayer Investor Presentation • Meet Management • June 2013 Source: IMS 3.7% OTC Market 2012 by Player J & J Bayer Novartis Cons Sanofi Cons Pfizer GSK Boehringer I. Reckitt Ben. Taisho Takeda Others  OTC market is very fragmented and grew ~4% versus 2011  Top 10 players have ~27% share of the OTC market  Bayer is ranked #2 with 3.7% share of the OTC market behind J&J with 4.0% share €99.5bn Page 85
  • 88. Why are OTCs an Attractive Business? • Bayer Investor Presentation • Meet Management • June 2013Page 86
  • 89. • Bayer Investor Presentation • Meet Management • June 2013 Large and Growing OTC Market OTC Market Growth Development 2008 2009 2010 2011 2012 2022e In € bn 86 89 92 96 100 >150 +3% +4% +4% +4% Source: Bayer Internal estimates *Source: IMS OTC Global Analysis ~4% CAGR Page 87  OTC market characterized by steady, predictable growth – even during economic downturns  OTC share of healthcare spending increased from 10.6% in 2007 to 11.3% in 2012*
  • 90. Favorable Trends Drive Continued OTC Market Growth • Bayer Investor Presentation • Meet Management • June 2013 Aging & more educated population Increasing global self-care trends Government desire to lower healthcare costs Rx to OTC Switches Expanding OTC access via new geographies, channels Traditional OTC Market Future OTC Market  Acute treatment  Symptomatic treatment  Chronic treatment  Preventive treatment  Asymptomatic with self- testing / pre-diagnosis  Wellness + Page 88
  • 91. • Bayer Investor Presentation • Meet Management • June 2013 Good Growth Across All OTC Categories Global OTC Market 2012 36% 42% 4% 20% 32% 43% 5% 13% 14% 10% 20% 13% 29%* €99.5bn OTC Growth 2012 +5% +4% +2% +4% +6% Gastroin- testinals Analgesics# Dermatology Cold, Allergy, Sinus & Flu Vitamins, Min- erals, Supple- ments *Other #Analgesics includes Cardio Source: IMSPage 89
  • 92. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 OTC Model Based on Brand Building versus Upfront Development Costs • Bayer Investor Presentation • Meet Management • June 2013 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Discovery & Development Realization Increased pricing pressure More me-too products OTC model based on brand asset building  Short investment cycle & long (but relatively smaller) revenue cycle Usually profitable within 1-2 years Ongoing investments in brand and innovation provides attractive, long-term returns Years1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Rx model reliant on blockbuster success  Long investment cycle & short (but attractive) revenue cycle Years1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Page 90
  • 93. Brands Years Old 2012 Sales €m 3-Year CAGR 113 970* 7% 81 197# 12% 78 101 1% 69 196 5% 68 269 12% 40 250 9% 19 323 12% Strong Consumer Brands Build Equity for Decades • Bayer Investor Presentation • Meet Management • June 2013 *Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx) #Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer PlusPage 91
  • 94. Increasing Transaction Multiples of OTC Businesses Year Seller Buyer Sales Multiple 2005 Roche OTC Bayer 2.4 x 2006 Pfizer (Zantac US OTC Rights) Boehringer Ingelheim 4.7 x 2006 Pfizer Consumer Healthcare Johnson & Johnson 4.3 x 2009 Chattem Sanofi-Aventis 4.9 x 2010 Paras Pharmaceuticals Reckitt Benckiser 8.2 x 2012 Schiff Reckitt Benckiser 5.4 x • Bayer Investor Presentation • Meet Management • June 2013 Source: Press Releases, Company Filings Page 92
  • 95. • Bayer Investor Presentation • Meet Management • June 2013 Aspire to Become the #1 – Path to OTC Leadership Page 93
  • 96. Evolution of Bayer Consumer Care’s OTC Business • Bayer Investor Presentation • Meet Management • June 2013 2008 Acquisition of OTC brand portfolio from Sagmel (CEE) and Topsun (China) 1996 Sale of suncare, cosmetics and sweetener businesses to Sara Lee 1999 Aspirin trademark centenary-worldwide sales > €500m 1978 Bayer purchases Miles Laboratories 1899 ASPIRIN introduced as an over-the-counter (OTC) medicine 1984 Self-Medication and Consumer Products created as independent business group 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 2011 New Bayer Advanced Aspirin for faster pain relief launched in US 2013 Expect Aspirin to hit €1bn sales Acquisition of Steigerwald Page 94
  • 97. Strategy for Growth • Bayer Investor Presentation • Meet Management • June 2013 2012 2015e OTC Sales Target 2015* €3.5bn >€4.0bn *assuming €/$ of 1.29 Organic growth >4% CAGR Growth Strategy  Maximize brand potential  Global expansion of key brands  Exploit our innovation pipeline  Double proportion of new products‘ sales until 2015  Grow in emerging markets  Increase commercial power  Bolt-on acquisitions to strengthen portfolio & regional set-up Page 95
  • 98. Cold, Allergy, Sinus, Flu Gastrointestinals Cardio Prevention Vitamins, Minerals, Supplements Analgesics Dermatologicals Dynamic Portfolio of Well-Known Brands • Bayer Investor Presentation • Meet Management • June 2013Page 96
  • 99. Strength of OTC Brands to Drive Organic Growth FY 2012 sales in € million (∆% yoy Fx-adj.) OTC portfolio includes 10 brand families with sales >€100m 323 269 250 196 146 130 122 101 +6% +5% +14% +8% +4% +3% +8% +5% +8% +17%197# • Bayer Investor Presentation • Meet Management • June 2013 *Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx) #Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus 970* = Rx Sales Page 97
  • 100. Maximizing Brand Potential Through Global Expansion Brand Sales by Major Region 2012 Expansion Plans Analgesic ~80% in North America Wound-healing ~75% in Europe Anti-fungal ~75% in Europe & LatAm Vitamins & minerals ~50% in Europe Pregnancy Supplement • Bayer Investor Presentation • Meet Management • June 2013Page 98 ~55% in Asia Pacific
  • 101. Consumer Insights Drive Brand Innovation and Growth • Bayer Investor Presentation • Meet Management • June 2013 Sales in € million 2002 2004 2006 2008 2010 2012 One-A-Day Innovation History 58 112 109 142 167 176 Bayer Innovation includes:  New claims  Indications  Delivery forms  Line extensions  New packaging  New DTC campaigns  Rx-to-OTC Switch DTC: Direct-to-consumer Page 99
  • 102. • Bayer Investor Presentation • Meet Management • June 2013Page 100  One A Day Vita Craves Complete adult multivitamin in great tasting gummy format 2010 2011 2012 2015e Robust Innovation Pipeline *sales of new products launched during a 4-year window Share of Sales from New Products*  Redoxitos Recommended children’s vitamin C daily dose for strengthening immunity  Canesten Nail Set Complete 6-7 week fungal nail infection treatment  Bepanthen Anti-Stretch Mark Moisturizing lotion keeping pregnant women’s skin soft and elastic ~16% 4% 5% 8% New Product Examples
  • 103. We Need to be Where the Market is Growing • Bayer Investor Presentation • Meet Management • June 2013 * Source: IMS 11% 78% 44% 6% 45% 16% Bayer OTC sales 2012 by region OTC Mkt 2012 growth share by region*  China, Russia and Brazil accounted for only 11% of Bayer 2012 OTC sales  78% of total OTC market growth in 2012 driven by China, Russia and Brazil  Huge opportunity for Bayer OTC to develop more in growth markets China, Russia & Brazil US, Germany, France & Italy Rest of the world Bayer OTC sales and market growth indexed Page 101
  • 104. Emerging Market Growth Strategies (2013 – 2015) • Bayer Investor Presentation • Meet Management • June 2013 Country Market Characteristics Plans China Brazil Russia  #2 global OTC market  €30bn in size by 2015e  Expand sales force from 30 cities to >130 cities, covering 75% of OTC market  Extend geographic footprint by launching global brands in China  #6 global OTC market  Fastest growing market in LATAM  ~50% of LATAM market  Expand sales force from 7,000 to 12,000 retail outlets, covering 73% of OTC market  Accelerate innovation through consumer insights and portfolio extension  #5 global OTC market  Retail OTC is the largest healthcare segment  Extend portfolio into attractive categories  Leverage leadership position in pharmacy chains to drive growth at point of sales Page 102
  • 105. • Bayer Investor Presentation • Meet Management • June 2013 Strategic Acquisitions – Steigerwald  Excellent strategic bolt-on entry into fast growing herbals market, further strengthens Bayer’s gastrointestinal position (currently #6 globally)  Excellent expansion potential into emerging markets like Russia and other Eastern European markets  Steigerwald generated net sales of €61.3m in 2012 (~90% in Germany) Iberogast®  For the treatment of functional dyspepsia & irritable bowel syndrome Laif®  St John’s wort-based medicine for treatment of depression  #8 OTC product in Germany  ~69% of 2012 sales  Strong position in its indication  ~20% of 2012 sales Page 103
  • 106. • Bayer Investor Presentation • Meet Management • June 2013 Bayer is Well-Positioned for Growth – Aspire to #1 Global 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 strong innovation pipeline  Focus on emerging markets where most of growth will come  Strategic acquisitions and alliances Page 104
  • 107. Investor Handout – Meet Management Bayer CropScience June 2013 – New York
  • 108. Sales 2012: €8,383m Insecticides€1,514m Market position: Fungicides€1,974m 3Market position: SeedGrowth€897m 1Market position: Herbicides €2,356m 4Market position: Env. Science €680m 1Market position: Seeds €962m 7Market position: Page 106 CropScience – A Leader in Chemical Crop Protection • Bayer Investor Presentation • Meet Management • June 2013 1 Market positions based on company reportings and Cropnosis estimates 18% 24% 11% 11% 8% 28%
  • 109. 26% 22% 13% 9% 9% 7% 6% 5% Fruits & Vegetables CerealsOilseeds Soy Corn Cotton Rice Sugar Crops * by major crop groups excluding industrial business and non-agricultural solutions CropScience Sales 2012* Other Fruits, Vegetables and Cereals – A Major Part of Our Portfolio • Bayer Investor Presentation • Meet Management • June 2013Page 107
  • 110. 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 • Bayer Investor Presentation • Meet Management • June 2013Page 108
  • 111. • Bayer Investor Presentation • Meet Management • June 2013Page 109 Excellent Performance in Positive Environment
  • 112. Full Year 2012 – CropScience • Bayer Investor Presentation • Meet Management • June 2013Page 110 Crop Protection +16% (+13%) Environmental Science +9% (+5%) *before special items Seeds +17% (+14%) 2012 Sales Earnings In € million, ∆% yoy, () = Fx & portf. adjusted CropScience €8,383m; +16% (+12%) Price +1% Volume +12% Fx +4% Portfolio -1% 6,741 FY‘11 FY‘12 FY‘11 FY‘12 1,654 2,026 +22% 1,168 1,543 +32% Adj. EBITDA* Adj. EBIT* 680 962
  • 113. Herbicides Fungicides Seeds Growth in all regions, especially in the US (new corn herbicides) and Brazil Double-digit growth in several key markets (e.g with Fox in Brazil) Growth in all regions; phase-out of WHO Class I products completed Strong business expansion; high demand for innovative Poncho/Votivo Double-digit growth in all broad-acre crops; slight decline in vegetable seeds Products both for professional users and consumers posting gains 2,356 +10% 1,974 +13% 1,514 +15% 897 +17% 680 +5% 962 +14% Insecticides Sales in € million; ∆% y-o-y Fx & portfolio adj. FY 2011 Nominal growth FY 2012 Page 111 • Bayer Investor Presentation • Meet Management • June 2013 SeedGrowth Env.Science Full Year 2012 – All Segments Contributing to Growth
  • 114.  High demand for InVigor in Canada; launch of conventional oilseed rape in Europe  Expansion of cotton seed business driven by US and Brazil  Growing rice seed business in Asia (esp. India)  Difficult market environment for vegetable seeds  Successful launch of Bayer soybean seed in the US  Build-up of global wheat seed business continued with new research cooperations • Bayer Investor Presentation • Meet Management • June 2013Page 112 299 304 227 311 179 19940 47 2011 2012 820 962 Sales in € million; ∆% y-o-y, () Fx & portfolio adj. 2012 Highlights Vegetables (-2%) Rice (+23%) Oilseeds (+33%) Soybean (+83%) Cotton (+10%) Other +14% Seeds – Double-Digit Growth in All Our Broad Acre Crops in 2012
  • 115. Emerging Economies 25% CropScience Sales in FY 2012 CropScience €8,383m; +16% (+12%) Latin America Eastern Europe Africa & Middle East Emerging Asia³ ~900 +7% ~1,800 +15% ~600 +16% ~300 +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 without Japan, Australia, New Zealand 18% USA +19% 25% 43% 14% Emerging Economies¹ +12% Western Europe +5% Others² +13% Full Year 2012 – Growth in All Regions Sales in € million, ∆% yoy Fx adjusted • Bayer Investor Presentation • Meet Management • June 2013Page 113
  • 116. • Bayer Investor Presentation • Meet Management • June 2013Page 114 Translating R&D Effectively into Sales From to €
  • 117. Executing Our Strategic Roadmap Strengthen Customer Centricity Lead the Way in Innovation Enhance Crop Protection  Striving for first- and best-in-class solutions  Exploiting expertise in seeds, breeding, and chemical and biological crop protection  Driving commercial excellence in marketing and sales  Connecting partners in the value chain through integrated Go-to-Market practices  Improving portfolio through focused and integrated crop solutions  Increasing flexibility and efficiency Expand Seeds Business  Further strengthening position in vegetables, rice, oilseed rape and cotton  Extending portfolio by building up business in soybean and wheat • Bayer Investor Presentation • Meet Management • June 2013Page 115
  • 118. Translate R&D Effectively into New Product Sales • Bayer Investor Presentation • Meet Management • June 2013Page 116  Xpro (+61%) - New cereal fungicide with yield-boosting effect  Adengo herbicide family (+85%) - Excellent weed control in corn and cereals, also in case of glyphosate resistance  Belt (+54%) - Broad-spectrum insecticide with fast and long-lasting action  Launch of Luna fungicide in the US  First launch of new SeedGrowth family EverGol/Emesto in Canada 0.02 0.3 0.7 1.1 ~1.4 ~1.9 2007 2009 2011 2012 2013e 2015e +60% 2012 Highlights Sales from new Crop Protection products launched since 2006 in € bn ∆% y-o-y, () Fx adj.
  • 119. Xpro – New Cereal Fungicide with Yield-Boosting Effect  Pyrazole fungicide from a new generation of SDHI* for foliar use in cereals  Combined formulation of Bixafen and Prothioconazole leading to superior "all-in-one" cereal fungicide  Excellent control of key cereal diseases including strobilurin-resistant Septoria  Boosting yield through long-lasting disease control and positive impact on plant physiology  Global peak sales potential of more than €300m * SDHI: Succinate dehydrogenase inhibitor Page 117 • Bayer Investor Presentation • Meet Management • June 2013
  • 120. 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 • Bayer Investor Presentation • Meet Management • June 2013Page 118
  • 121. LibertyLink – A Sustainable Alternative to Glyphosate to Fight Weed Resistance • Bayer Investor Presentation • Meet Management • June 2013Page 119 Bayer CropScience sustains the "Respect the Rotation" initiative to overcome weed management challenges HPPD: Hydroxyphenyl-pyruvate dioxygenase MGI: Mesotrione, Glufosinate-ammonium and Isoxaflutole  Weed resistance to glyphosate increasingly impacting crop production  Our LibertyLink is currently the only non-selective herbicide solution to glyphosate resistant weeds  Construction of a new world-scale glufosinate-ammonium plant in the US planned to contribute to more than doubling global production capacity  We are committed to develop new and more sustainable weed management solutions  Innovation with new mode of action, HPPD herbicide tolerance, in soy and cotton  MGI triple stack herbicide-tolerance soybean trait submitted for approval  Highly effective pre-emergent and selective herbicide portfolio launched
  • 122. Realising Further Growth Opportunities in Biologics  Biologics are bio-based products, either consisting of naturally-occurring living organisms or containing materials derived from plants, bacteria, fungi, yeasts or viruses  The market potential for Biologics is expected to triple from $1.2bn in 2010 to around $4bn in 2020  AgraQuest acquired in Q3 2012 for €375m including milestone payments. Leading global provider of innovative biological pest management solutions based on natural microorganisms  German company Prophyta acquired in Q1 2013, provides customers well-established products primarily based on biological control agents, e.g. nematicide BioAct.  Acquisitions strengthen strategically important fruit and vegetables business  We aim to become the world leader in integrated crop solutions • Bayer Investor Presentation • Meet Management • June 2013Page 120
  • 123. Customer Centricity Along the Entire Value Chain • Bayer Investor Presentation • Meet Management • June 2013Page 121 Bayer CropScience Our offers Growers Distributors/ seedcompanies Retailers Advisors Providing Seed-to-Shelf Solutions Traders Foodprocessors Foodretailers Consumers  240 food chain partnerships covering most of the main fruit & vegetable crops  Premium seeds and effective crop protection products to maximize yield  Consistent and high harvest quality for efficient food processing  Meeting highest food safety standards  Better product quality for the consumer
  • 124. Best-Practice Examples of our New Go-To-Market Approach • Bayer Investor Presentation • Meet Management • June 2013Page 122 Approach Achievement Food chain partnerships in grapes in Brazil, Chile, Italy and India  Market share in grapes in Brazil +5%  ~ 60% market share in table grapes in Chile (largest exporter worldwide) "On demand" seed treatment system with a global network of 10 SeedGrowth Centers  2012 SeedGrowth sales* +17%  Further roll-out of SeedGrowth franchise in Asia Pacific (sales in China* +30%) Combine innovative technology of Movento insecticide with additional service offerings  2012 Movento sales* +49% BayDir service in Germany offers tailored and immediate information for farmers through Internet and mobile phone apps  Further strengthened our position in the German market * Sales ∆% y-o-y Fx adj.
  • 125. Pipeline Peak Sales Potential  €4bn from Products Launched 2011 - 2016* • Bayer Investor Presentation • Meet Management • June 2013Page 123 Crop Protection (excl. Biologics) Cotton Canola Wheat Biologics Seeds & Vegetables Soybean Rice 2011 Fungicide Herbicide SeedGrowth** GlyTol Cotton Seed Varieties ~80 launches in vegetables & broad acre crops 2012 ~ 100 launches in vegetables & broad acre crops Bayer Oilseed Rape Seed Fungicide Bayer Soybean Seed SeedGrowth** Seed Varieties 2013 ~110 launches in vegetables & broad acre crops Roundup Ready Hybrid Canola SeedGrowth** / Fung. B. Subtilis Fungicide Serenade Optimum Bayer Oilseed Mustard Hybrids Seed Varieties 2014 Canola Yield Increase Numerous launches in vegetables & broad acre crops Sivanto Insecticide Verango / Velum Insecticide Insect Resistant Hybrid Rice TwinLink + GlyTol Cotton Seed Varieties 2016 Disease Res. + Salinity Tol. Hybrid Rice Insect + Disease Res. Hybrid Rice Improved Canola Oil Profile Dual Herb. Tol. + Novel Ins. Res. Cotton Fungi- / Bactericide Serenade AEW Seed Varieties Numerous launches in vegetables & broad acre crops 2015 LibertyLink + R. Ready Hybrid Canola Biologics Fungicide Biologics Fungi- / Bactericide Triafamone Herbicide GlyTol + HPPD Tolerant Soybeans Bayer Wheat Seed Biologics Insecticide Disease Res. + Submerge. Tol. Hybrid Rice Seed Varieties Numerous launches in vegetables & broad acre crops Biologics Insecticide *Estimated and subject to regulatory approval **Formerly called Seed Treatment
  • 126. 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 2014 / 2015 * • Bayer Investor Presentation • Meet Management • June 2013Page 124 * first registrations for foliar application; SeedGrowth use planned to follow subsequently
  • 127. Restriction of Neonicotinoids Use in the EU - Implications  The European Commission has adopted a proposal to restrict the use of certain neonicotinoids (including clothianidin and imidacloprid) in summer cereals and bee- attractive crops, including corn, oilseed rape and sunflower  Neonicotinoid-based products are safe for bees, when used according to label instructions; registered in > 100 countries world-wide in a broad range of crops  Affected business of clothianidin and imidacloprid ~1% of total CropScience sales, gross  Net sales impact significantly less, as alternative products partly compensate  Restrictions will apply from Sept 30 (use of treated seeds until Dec 1, 2013) the latest  Restrictions expected to result in crop yield losses and loss of competitiveness for European agriculture  U.S., Canadian and Brazilian regulatory agencies recognize that there are numerous factors affecting honey bee health  Bee health more complex: diseases, parasitic mites, habitat loss, nutritional deficiencies and hive management practices • Bayer Investor Presentation • Meet Management • June 2013Page 125
  • 128. 2010 2011 2012 2016e Crop Protection/Environmental Science Seeds Increasing the R&D Share for Seeds • Bayer Investor Presentation • Meet Management • June 2013Page 126 In € million Seeds Fungicides Biologics Insecticides SeedGrowth Herbicides ~1,200 ~800~600 ~500 ~500 ~400 Pipeline Peak Sales Potential  €4bn from Products Launched 2011 – 2016* . * Estimated and subject to regulatory approval 63% 37%35% 65% 70% 30% 722 723 782 Pipeline Value by SegmentR&D Split
  • 129. Extending the Seeds Footprint • Bayer Investor Presentation • Meet Management • June 2013Page 127 Build up a proprietary soybean seed business Build up a global wheat seed business  LibertyLink herbicide tolerance technology broadly outlicensed  Acquisition of Hornbeck Seed Company in the US  Bayer soybean seed launched in 2012  Presence in soybean market in Brazil stepped up with bolt-on acquisitions  Broad germplasm pool and promising trait pipeline  Next-generation trait technology licensed from Monsanto  Significant investment into R&D of new wheat varieties and traits  Focus on productivity, stress tolerance, nutrient uptake  First new varieties expected by 2015 in Europe  Several agreements closed with wheat players to establish a broad germplasm pool  Wheat breeding stations set-up in Europe, US, Australia
  • 130. Access to Next-Generation and Enabling Trait Technologies for Soybeans  Cross-licensing agreement with Monsanto entered in April 2013  Monsanto will provide Bayer with royalty-bearing licenses to specified trait technologies in soybeans, with stacking-rights under certain conditions  Licensed traits fit nicely with our own technology such as LibertyLink  Ability to offer additional pest control options and an all-inclusive weed resistance package in soybeans  Bayer will grant Monsanto licenses to evaluate certain enabling technologies • Bayer Investor Presentation • Meet Management • June 2013Page 128 Weed control Pest control  Genuity® Roundup Ready 2 Yield®: glyphosate tolerance  Genuity® Roundup Ready 2 Xtend™: glyphosate & dicamba tolerance  Regions: United States and Canada  Intacta RR2 PRO™: first‐ever insect-protected trait in soybeans, providing control of lepidopteran pests  Regions: Brazil, with an option to a royalty-bearing license in other Latin-American countries in the future Genuity® Roundup Ready 2 Yield®, Genuity® Roundup Ready 2 Xtend™ and Intacta RR2 PRO™ are trademarks of Monsanto
  • 131. Strategic Progress Achieved Enhance Crop Protection Strengthen Customer Centricity Lead the Way in Innovation Expand Seeds Business ● €1.1bn sales in 2012 with products launched since 2006 ● All WHO class I insecticides removed from our portfolio ● Expansion of Biologics ● Increased grower orientation ● Improved channel management practices ● Broadened food chain partnership business model ● Pipeline Peak Sales Potential*  €4bn ● Increased investment in Seeds R&D ● Innovating at the interface between chemistry and biology ● Strengthened positions in cotton, canola and rice ● Increased investments in soybean, wheat and vegetables ● Development of innovative traits • Bayer Investor Presentation • Meet Management • June 2013Page 129 * from products launched between 2011-2016
  • 132. • Bayer Investor Presentation • Meet Management • June 2013Page 130 Targeting Above Market Growth at Benchmark Profitability 2012 CAGR 2015e
  • 133. Seed and Crop Protection Market Expected to Grow  5% in 2013 • Bayer Investor Presentation • Meet Management • June 2013Page 131  Persistently high prices for agricultural commodities  Slightly weaker but nonetheless positive market development overall  Growth coming mainly from North and Latin American followed by Eastern European markets  Asia / Pacific: cereals, rice and specialty crops fueling market growth
  • 134. • Bayer Investor Presentation • Meet Management • June 2013Page 132 CropScience – Above Market Growth at Benchmark Profitability Priority 2012 Target 2013* Aspiration 2015  Above-market sales growth +12.4% to €8.4bn high-single digit % towards €9bn CAGR ~6% towards €10bn  Translate R&D effectively into new product sales (CP products launched since 2006) €1.1bn ~€1.4bn ~€1.9bn  Extend seeds footprint +14%  Maintain industry leading profitability level 24.0% slight improvement ~24% Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales double-digit % growth p.a. CP: Crop Protection *Assuming Fx rate of $1.29 per € Outlook depends on specific planning assumptions as detailed in the Annual Report double-digit % growth
  • 135. 303 ~500 ~500 ~500 2012 2013e 2014e 2015e  Building up capacity for top Crop Protection brands including herbicide Liberty/Basta and fungicide product families Nativo and Prosaro  €380m investment in construction of a new glufosinate-ammonium production plant in the US until end of 2015  Expanding our Seeds infrastructure (breeding stations, greenhouses and seed processing facilities)  Expanding and modernizing R&D facilities (RTP/USA, Davis/USA, Monheim/Germany) We are Ensuring a World-Class Product Supply by Further Investing • Bayer Investor Presentation • Meet Management • June 2013Page 133 Capital Expenditures (PPE only, in €m)
  • 136. Investor Handout – Meet Management Bayer MaterialScience June 2013 – New York
  • 137. MaterialScience – Leading Positions in All Segments • Bayer Investor Presentation • Meet Management • June 2013 * aliph. isocyanates MaterialScience €11,491m Polyurethanes €5,987m  #1-2; approx. 20-24% market share 52% 6% 25% 17% Sales in € million Polycarbonates €2,819m  #1; approx. 27% market share Coatings, Adhesives, Specialties €1,972m  #1; >40% market share* Industrial Operations €714m Sales Split by Segment 2012 Page 135
  • 138. MaterialScience – Global Production Network • Bayer Investor Presentation • Meet Management • June 2013Page 136 Headquarter Major Production Sites Downstream Businesses Position* Americas # 1 # 2 # 1 PUR PCS CAS Position* EMEA# *Market share based on estimated sales following self-assessment # Europe, Middle East & Africa # 1 # 1 # 1 PUR PCS CAS Position* Asia/Pacific # 2-3 # 1-2 # 1 PUR PCS CAS
  • 139. MaterialScience – Sales By Key Customer Industries • Bayer Investor Presentation • Meet Management • June 2013 Others (sports, leisure, footwear packaging, medical, etc.) Furniture/ Wood AutomotiveChemicals Electro/ Electronics Construction 17% 28% 19% 20% 8% 20% 16% Bayer MaterialScience sales by industry in 2012 Page 137
  • 140. MaterialScience as an Integrated Solution Provider • Bayer Investor Presentation • Meet Management • June 2013Page 138 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
  • 141. • Bayer Investor Presentation • Meet Management • June 2013Page 139 Mixed Performance
  • 142. • Bayer Investor Presentation • Meet Management • June 2013 Full Year 2012 – Operating Performance 25% 5,987 2,819 Polycarbonates -3% (-7%) Polyurethanes +12% (+8%) 2011 2012 Adjusted EBITDA* 1,171 1,262 * before special items 2011 2012 Adjusted EBIT* 589 613 +8% +4% 2012 Sales Earnings 1,972 714 In € million; ∆% y-o-y, () Fx & portfolio adj. Coatings, Adhesives, Specialties +3% (+4%) Industrial Operations +8% (+6%) Price 1% Volume +2% Fx +4% Portfolio -1% MaterialScience €11,491m; +6% (+3%) Page 140
  • 143. Full Year 2012 – Regional Sales Development • Bayer Investor Presentation • Meet Management • June 2013 Emerging Economies2012 MaterialScience Sales MaterialScience €11,491m; +2% Latin America Eastern Europe Africa & Middle East Emerging Asia³ ~2,760 +1% ~920 +15% ~680 +7% ~575 -5% 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 without Japan, Australia, New Zealand USA +7% 36% 42% Emerging Economies¹ +3% 4% Others² +2% Sales in € million; ∆% y-o-y Fx adjusted 20% 32% 43% 5% Page 141 Western Europe -2%
  • 144. • Bayer Investor Presentation • Meet Management • June 2013Page 142 Selling Price Increases & Savings Not Sufficient to Protect Earnings  Market growth trends intact, key products with mid-single digit volume growth  High raw material prices and significant capacity additions led to global overcapacities and margin pressure  Going forward demand & supply balance expected to improve  Anticipated margin improvement supported by fresh savings from new efficiency initiative 2010 2011 2012 Sales Adj. EBITDARaw Mat. & Energy Costs CFROI In € bn 10.2 10.8 11.5 5.4 6.2 6.6 1.4 1.2 1.3 6% 6% 8%
  • 145. 600 800 1000 1200 1400 1600 • Bayer Investor Presentation • Meet Management • June 2013Page 143 Price For Key Input Benzene Recently Increasing Again in $/t Benzene vs Oil Price Development  Benzene and benzene derivatives accounted for ~35% of raw material exposure in 2012  Benzene price level near record highs  Benzene price driven by lower demand of main refinery products Q4‘11 Q1‘12 Q2‘12 Q3‘12 Q4‘12 Q1‘13 Benzene Brent Crude Oil
  • 146. • Bayer Investor Presentation • Meet Management • June 2013Page 144 Aspire to Earn a Premium Over Cost of Capital
  • 147. Cash Generation in Excess of Own Investment Need • Bayer Investor Presentation • Meet Management • June 2013 2002 and 2003 as reported in 2004 excluding acquisitions or divestments In € million 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 902 1,108 464 1,113 332 498 715 1,388 690 1,281 870 672 1,147 782 504 498 565 775763 849 Page 145 621 735 CapEx (cash-relevant) Net Cash Flow ~€3.6bn Free Operating Cash Flow in 11 years Free Operating Cash Flow 206 649 166 673 592 277 110 345 265 210 114
  • 148. • Bayer Investor Presentation • Meet Management • June 2013Page 146 Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales Higher Asset Utilization & Efficiency Measures Are Driving Performance 2012 Target 2013 Aspiration 2015 *Assuming Fx rate of $1.29 per € #after reproduction Outlook depends on specific planning assumptions as detailed in the Annual Report  Sales +2.9% to €11.5bn (volumes +2%)  Adj. EBITDA +8% to €1,262m  CFROI# 5.7% < WACC 7.1%  Sales to slightly increase to ~€12bn  Adj. EBITDA to match 2012 figure  Q2‘2013 vs Q1‘2013: Sales to increase and adj. EBITDA to significantly increase  Grow business (volume) above global GDP  Defend market leading positions in PCS and PUR  Realize 150 bp margin contribution through new efficiency initiative  Optimize asset structure in Germany  CFROI# > WACC
  • 149. • Bayer Investor Presentation • Meet Management • June 2013Page 147 Outlook 2013 – Economy and Key Customer Industries 20% 17% 28% 19% Automotive (+2%) Electro / Electronic (+5%) Construction (+4%) Furniture (+5%) Others (incl. Chemicals) 2.6 0.0 0.4 1.8 5.3 4 3 2 1 5 GDP growth % prev. year 16% *Assuming Fx rate of $1.29 per € Outlook depends on specific planning assumptions as detailed in the Annual /Quarterly Report Sales by industry 2012 and expected 2013 growth Global Economic GDP Outlook Key Customer Industries Outlook
  • 150. • Bayer Investor Presentation • Meet Management • June 2013Page 148 Profitability Improvement Through New Efficiency Initiative Until 2015  New efficiency initiative improves cost structure and increases adjusted EBITDA margin by 150bp  Initiative comprises more than 100 measures across the entire value chain Examples Business Units  Consolidation of system houses  Pricing excellence programs Organization  Optimization of regional structures (e.g. Canada & US) Production  Further initiatives to improve asset productivity (e.g. maintenance schedules, engineering setup) Supply Chain  Optimization of logistics services Selling & Administration  Further reduce costs by leveraging established global ERP platform and standardized processes ERP: enterprise resource planning
  • 151. Process Technology Advances Lower Cost & Save Energy • Bayer Investor Presentation • Meet Management • June 2013 ProcessBenefits*Status TDI Gas Phase Phosgenation Adiabatic Aniline Production ODC Technology for Chlorine Production *Compared with conventional technology ODC: Oxygen depolarized cathode  Uses up to 60% less energy  Requires 80% less solvent  CapEx reduced by 20%  Uses 25% less energy  20% less CO2 emissions  CapEx reduced by 30%  Uses 30% less energy  Reduces indirect CO2 emissions  World-scale facility since 2011 in Shanghai, China  Technology to be used in new TDI plant in Dormagen  Pilot plant in Antwerp, Belgium  Plant in Shanghai since 2010  Demo facility in Krefeld- Uerdingen  External marketing planned from 2013 Page 149
  • 152. • Bayer Investor Presentation • Meet Management • June 2013Page 150 Focus on Capital Discipline DepreciationCapEx (PPE only) 813 462 600 460 527 599 2008 2010 2012 2013e In € million CapEx vs Depreciation CapEx Strategy ● Investment focus on utilization improvement ● Investment in efficiency is the basis for future profitable growth ● CapEx on depreciation level for 2013 and the foreseeable future
  • 153. • Bayer Investor Presentation • Meet Management • June 2013Page 151 Capitalizing on Global Megatrends 1990 2000 2020e 2050e 5.3 6.1 7.7 9.2 billion people
  • 154. • Bayer Investor Presentation • Meet Management • June 2013Page 152 Our High-tech Materials Meet Key Customer Industry Needs Poly- carbonates Poly- urethanes & CAS  Low weight for better energy efficiency in transportation  High mechanical strength enables product durability  Transparency for optical applications and architectural glazing  High heat resistance and reliable electrical insulation properties  Excellent design flexibility that goes beyond that of glass  Outstanding thermal insulation properties  Versatility allowing full spectrum of flexible to rigid foam applications  Excellent abrasion resistance and rebound resilience  Durability for reliable protective coatings AutomotiveConstruction Electro / Electronics CAS: Coatings, Adhesives, Specialties
  • 155. Polyurethane-based Insulation for Residential & Commercial Buildings • Bayer Investor Presentation • Meet Management • June 2013 PUR Isoboards for Thermal Insulation Growth drivers  EU: From 2020 on, new buildings have to be constructed as “nearly zero- energy buildings”  US: New standard requires 30% less energy use for renovated homes and commercial buildings  1 kg polyurethane saves 360 to 755 kg CO2 emissions*  PUR in construction industry in 2012: approx. €5.7bn, estimated average growth rate of ~8% p.a. *Additional insulation, savings over entire product life-cycle of 50 years, including production and end-of-life stages; PUR: polyurethane  External Thermal Insulation Composite Systems (ETICS) save >25% energy compared with other insulation materials  Joint solution development with key industry players to fulfill high industry requirements PUR Metal Sandwich Panels  Prefabricated and mainly applied for industrial and commercial buildings as well as cold storage  Easy handling and fast site assembly Page 153
  • 156. • Bayer Investor Presentation • Meet Management • June 2013Page 154 Polyurethane-based Insulation in Cold Chain Growth drivers  Globally more stringent energy saving regulations  Increasing demand for trans- porting temperature sensitive goods  Increasing standard of living in emerging markets triggers continuously growing demand for appliances  PUR in refrigerator industry 2012: approx. €2.6bn, estimated average growth rate of ~6% p.a. Refrigerators  Refrigeration accounts on average for 20% of a household’s electricity consumption  Replacing all old refrigerators with A++ appliances could cut annual CO2 emissions in the EU by 22 million metric tons  PUR insulation increased energy efficiency of refrigerators by 65% from 1950-2005  BMS’s innovative Baytherm® Microcell foam:  Reduces pore size of foam up to 40%  Reduces thermal conductivity up to 10% PUR: polyurethane
  • 157. Increased Energy Efficiency in Cars Through Polycarbonates • Bayer Investor Presentation • Meet Management • June 2013 Growth drivers Polycarbonates  Heat stability and optical quality enable new LED-based lighting systems  Flame-retardant polycarbonate blends protect batteries used in future cars with hybrid engines  Car body parts made from polycarbonate blends reduce weight  Automotive glazing out of polycarbonate combines high weight saving potential with outstanding thermal insulation  Broad global political initiatives promoting e-mobility  Increasing use of electrical devices requires flame retardancy of plastics  Polycarbonate glazing offers a weight advantage of 30-50% compared to real glass  81m light vehicles* produced globally in 2012, estimated average growth rate of 5-6% p.a. *includes cars and light commercial vehicles up to a weight of 6t Page 155

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