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Q2 2011 Investor Handout U.S. West Coast Roadshow
 

Q2 2011 Investor Handout U.S. West Coast Roadshow

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    Q2 2011 Investor Handout U.S. West Coast Roadshow Q2 2011 Investor Handout U.S. West Coast Roadshow Presentation Transcript

    • Second quarter 2011 -Bayer continues positivemomentumWerner Baumann, CFO08/30 – 09/01/11 – U.S. West Coast Roadshow
    • DisclaimerThis presentation may contain forward-looking statements based on currentassumptions and forecasts made by Bayer Group or subgroup management.Various known and unknown risks, uncertainties and other factors could lead tomaterial 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 areavailable on the Bayer website at www.bayer.com.The company assumes no liability whatsoever to update these forward-lookingstatements or to conform them to future events or developments.Page 2 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • 2nd quarter 2011 – Bayer continues positive momentum Group outlook 2011 projects higher sales and adjusted EBITDA €15bn investment plan through 2013 to maximize value of new product pipeline strength and to realize emerging markets opportunity Two-year group restructuring plan to generate €800m efficiency improvements underwayPage 3 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • 2nd Quarter 2011 –Bayer Continues Positive Momentum Q2‘11 ∆% Highlights € million € millionSales 9,252 +1 (+5)  Solid business expansionEBITDA- reported 1,906 +6  Adjusted EBITDA improved, good- adjusted 2,035 +6 season for CropScience, slightEBIT expansion at HealthCare,- reported 1,273 +26 MaterialScience remained level yoy- adjusted 1,417 +12Net income 747 +41  Reported EBIT impacted by netNet cash flow 1,530 -1 special charges of €144mFree operating cash flow 1,232 +4EPS  2011 Group financial outlook- reported 0.90€ +41 reiterated- core 1.29€ +11( ) = Fx & portfolio adjustedPage 4 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • 2nd Quarter 2011 –Breakdown By Segment Sales adj. EBITDA ∆% 2010 2011 2010 2011 ∆% (adj.)HealthCare 4,305 4,208 -2 (+2) 1,122 1,156 +3Pharma 2,748 2,666 -3 (+0.5) 772 807 +5Consumer Health 1,557 1,542 -1 (+4) 350 349 0CropScience 1,884 1,943 +3 (+9) 380 471 +24MaterialScience 2,689 2,782 +3 (+8) 373 372 0In € million, ( ) = Fx & portfolio adjustedPage 5 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • 2nd Quarter 2011 –Emerging Markets Leading The Growth Q2 2011 Group sales by region Emerging Economies +5% USA Emerging +4% Economies¹ ~1,300 20% 36% +7% 20% 36% +4% ~900 +9% 34% +14% ~600 10% ~500Western Europe Others²+6% +2% Group €9,252m; +5% Emerging Latin Eastern Africa & Asia³ America Europe Middle EastIn € million, ∆% yoy Fx adjusted ¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, New Zealand, Africa and Middle East incl. Turkey, Eastern Europe ² Others = Japan, Australia, New Zealand, Canada ³ Emerging Asia = Asia w/o Japan, Australia, New ZealandPage 6 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • 2nd Quarter 2011 –Cash Flow And Net Debt Development Q2 2011 Cash Flow Net Debt DevelopmentIn € million In € billion GCF NCF Invest- oFCF +0.3 cont. ments 7.1 7.4 1,532 1,530 298 1,232 ∆% y-o-y +19% -1% -18% +4% Q1´11 Q2´11Page 7 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Fiscal 2010 –Operating Performance On Track FY‘10 ∆% Highlights € million € millionSales 35,088 +13 (+8)  Achieved group financial targets inEBITDA 2010- reported 6,286 +8- adjusted 7,101 +10  Strong year at MaterialScience –EBIT HealthCare and CropScience- reported 2,730 -9 below- adjusted 4,452 +18  Net income diminished by highNet income 1,301 -4 special chargesNet cash flow 5,773 +7Free operating cash flow 4,152 +12  Strong operating cash flow – netEPS financial debt reduced- reported 1.57 -8- core 4.19 +15( ) = Fx & portfolio adjustedPage 8 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Selected Indicators 2006-2010 -Track Record of Performance EBITDA before special items and margin* (€ billion) Core earnings per share* (€) 7.1 6.8 6.9 6.5 5 4.19 5.6 4.17 3.80 3.64 4 2.99 3 19.3% 20.9% 21.1% 20.8% 20.2% 2 02006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Net cash flow* (€ billion) Net financial debt*, ** (€ billion) 5.8 20 17.5 5.4 16 14.2 3.9 4.3 12.2 3.6 12 9.7 7.9 8 4 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 * 2006 - 2008 from continuing operations ** year-end dataPage 9 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Building A World-Class Innovation CompanyPage 10 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Building A World-Class InnovationCompany Portfolio Growth Productivity Build on leading industry Invest in innovation Decomplex structures position in all 3 capabilities and processes subgroups Maximize value of new Implement two-year Enhance competitive product pipeline strength group restructuring plan position Realize emerging market opportunity Target is to deliver mid-single digit organic sales growth in 2011 and to invest €15bn in growth during 2011 - 2013Page 11 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Bayer –A Leader in Its Markets €16.9bn HealthCare Pharmaceuticals €10.9bn, leading positions in key categories Consumer Health €6.0bn, OTC pharmaceuticals, blood glucose meters and 50% 30% veterinary medicines, global #2-4 €6.8bn CropScience Agrochemicals and seeds & traits, global #2 in agrochemicals 20% €10.2bn MaterialScience Polyurethanes and polycarbonates, global #1/2 Sales 2010: €35.1bn Break-down excluding reconciliationPage 12 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • HealthCare-Pharma Pipeline Maturing What it does Status 1st indication launched/ Cardiology Xarelto inhibits blood clot formation filed; phase III lowers blood pressure in the Riociguat phase III lung inhibits enzymes important for launched, additional Nexavar tumor growth indications in phase II/III Oncology inhibits enzymes important for Regorafenib phase III tumor growth targeted treatment of bone Alsympca trial (phase III) Alpharadin metastases in prostate cancer stopped early on success Diseases inhibits formation of new 1st indication filed; Eye VEGF Trap-Eye blood vessels phase IIIPage 13 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Xarelto Inhibits the Blood-clottingProcess at a Pivotal Stage The blood coagulation cascade  Thromboembolism is the single largest cause of morbidity and mortality in the western world.  Anticoagulant drugs inhibit the coagulation cascade and are the mainstay of antithrombotic therapy.  Current treatment options have limitations: Xarelto  Heparin  parenteral administration  Vitamin K antagonists (e.g. Warfarin)  narrow therapeutic window, slow onset of action, unpredictable pharmacologyPage 14 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Xarelto: Addressing Medical NeedsAcross a Wide Range of Patients Indication Phase III Program Status Stroke Prevention in Atrial Fibrillation (AF) Filed in US, EU VTE-Treatment Filed in EU / US-filing early 2012e Data late 2011e / Sec. Prevention in ACS early 2012e Data reported; VTE-Prevention in further analysis Medically Ill Patients underway VTE-Prevention after elective hip Launched and knee replacement Surgery 1-4Page 15 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Xarelto Demonstrated an ExcellentClinical Profile in Key Indications 1-4  Superior efficacy: 52% relative risk reduction* VTE prevention after orthopedic surgery (RECORD 1- 4 trials)  Rates of major bleeding low. No statistically significant difference  Comparator: enoxaparin  EINSTEIN-DVT  Non-inferior efficacy - significantly improved net clinical benefit **  Composite of major and clinically relevant non major bleeding similar DVT treatment and with numerically lower major bleedings Extended secondary prevention of VTE (EINSTEIN-DVT and  Comparator: enoxaparin followed by vitamin K antagonist EINSTEIN-Extension  Superior efficacy: 82% reduction of recurrent VTE  EINSTEIN-Extension trial)  Low incidence of major bleeding. No stat. significant difference  Comparator: placebo  Non-inferiority vs. warfarin in ITT and per-protocol population. Active treatment superior to warfarin in reducing the risk of stroke and non-CNS  Stroke prevention in atrial embolism in the safety population. fibrillation  Composite of major and clinically relevant non major bleeding similar (ROCKET-AF trial)  Comparator: vitamin K antagonist Selection of clinical trial results. For full data see publications: VTE prevention after orthopedic surgery (RECORD) data published in NEJM (RECORD 1: Vol 358 2008; RECORD 3: Vol 358 2008) and Lancet (RECORD 2: Vol 372 2008; RECORD 4: Vol 373 2009), extended sec. prevention of VTE (EINSTEIN-Ext.) and DVT treatment (EINSTEIN-DVT) data publiashed in NEJM Vol 363 2010; stroke prevention (ROCKET-AF) data published in NEJM (online August 10, 2010) *) Symptomatic VTE + all-cause mortality in pooled analysis of RECORD 1-4; **) Secondary outcome defined as composite of primary efficacy endpoint plus major bleeding VTE: Venous thromboembolism; DVT: Deep veinPage 16 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011 thrombosis; ITT: Intention to treat
    • VEGF Trap-Eye –Addressing Major Eye Diseases wet AMD Diabetic Macular Edema (DME)  Wet AMD is due to abnormal blood vessel  Most prevalent cause of vision loss in growth in the eye; the disease accounts for patients with diabetes. approx. 90% of AMD-related blindness.  Clinically significant DME is a leading cause  Wet AMD is the leading cause of acquired of acquired blindness in the adults aged blindness in the elderly. <50years.  Approx. 1.5 million patients annually in the  Approx. 370,000 patients suffer from clinically US. significant DME in the US, with 95,000 new cases / year. Central Retinal Vein Occlusion (CRVO) myopic CNV  Obstruction of central retinal vein may lead  In myopic patients, the eyeball is too long – to vision loss and other serious this situation puts strain on retina and may complications. lead to pathological changes (e.g. irregular vessel growth) in the back of the eye.  > 100,000 people in the US and > 66,000 people in key EU countries are estimated to  Severe myopia is common in Asia; in suffer from CRVO. Japan, mCNV is the second most common cause of blindness. AMD: Age-related macular degenerationPage 17 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011 CNV: Choroidal neovascularization
    • VEGF Trap-Eye – Key Data from ClinicalStudies Suggest a Competitive Profile  Phase III program incl. 2,457 patients (VIEW 1, VIEW 2) Wet Age-Related Macular  Primary efficacy endpoint met, non-inferiority compared to Lucentis Degeneration (wet AMD)  demonstrated One year data demonstrated potential for less frequent dosing with  comparable vision maintenance  Phase III program incl. 354 patients (COPERNICUS, GALILEO) Central Retinal Vein Occlusion (CRVO)  Primary efficacy endpoint met, demonstrating significant improvement in vision after six months of treatment compared to sham-injections   Phase II study incl. 219 patients (DaVinci) Diabetic Macular Edema  VEGF Trap-Eye vs. laser treatment: (DME) Primary endpoint met: Visual acuity gains over 24 weeks were maintained or numerically improved up to completion of the study at week 52   Phase III trial initiatedVEGF Trap-Eye was generally well tolerated and the most common adverse events were those typicallyassociated with intravitreal injections or the underlying disease.Selection of clinical data. For further details see Bayer press releases from November 22, 2010, December 20, 2010 and April 27, 2011.Further data presented at Angiogenesis Conference, Miami, Florida, February 12, 2011.
    • VEGF Trap-Eye –Status of Clinical Program Indication Phase III Program Status Wet age-related macular degeneration (AMD) Filed Central retinal vein occlusion Filing 2012e (CRVO) Diabetic macular edema (DME) Phase III ongoing Myopic choroidal Phase III ongoing neovascularizytion (CNV)Page 19 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Alpharadin – New Opportunities toTreat Bone Metastases  Alpha-pharmaceutical (based on 223Radium, delivering highly energetic, short ranging radiation) - in-licensed from Algeta  Radium as natural bone seeker targeting bone metastases  Phase III in hormone-resistant prostate cancer (HRPC)  ALSYMPCA (phase III) in patients with smptomatic HRPC with sceletal metastases stopped early - Alpharadin demonstrated significant improvement in overall survival vs. placebo  Filing targeted mid 2012e  Fast track status granted by FDA Tumor cells Newly formed bone Bone metastases Radium-223 deposition Radium-223: highly localized tumor cell killing HRPC: Hormone-refractory prostate cancerPage 20 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Expected 2011 MajorPipeline Newsflow Project / Study When expected? Xarelto ATLAS TIMI 51; phase III in secondary Data end 2011e / prevention of acute coronary syndrome (ACS) early 2012 Xarelto EINSTEIN PE; phase III in treatment of PE and Data end 2011e / secondary VTE prevention early 2012 Xarelto Potential newsflow on submissions 2011e Nexavar Phase III in NSCLC and phase III in thyroid Completion end cancer 2011e / 2012e VEGF Trap-Eye Two-year data from wet AMD phase III VIEW 2011e programPage 21 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • CropScience - Innovation Leadership inAgChemicals, Promising BioScience Pipeline 23 new agrochemical active ingredients launched, generated sales of €2bn in 2009 2000 - 2009 Six new agrochemical substances with sales potential of more than €1bn to be launched 2010 - 2012E Expect 18 new BioScience products to be launched 2010 - 2016E Numerous early-stage research and early development projects in Crop Protection and BioSciencePage 22 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Growth Platform Ag BioScience -Strongly Expanded in 2010 Planned sales development Key growth drivers in € million  Fast growing established business in cotton, canola, rice and vegetables ~1,400 Planned: CAGR 12%  Regional expansion and introduction of new varieties >1,000  Exploit traits potential through licensing agreements 687  Extension of our crop-portfolio to +37% soybean and cereals 503  Increase of BioScience’s share of 240 CropScience R&D expenditures  R&D capacities strengthened through acquisition of Athenix (2009) 2002* 2009 2010 2015 E 2018 E *2002 sales pro-forma Bayer + Aventis CropSciencePage 23 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • CropScience – Translate R&D MoreEffectively Into Sales  Realign company activities with a stronger customer focus  Restructure and further invest in global marketing to enable improved commercial execution  Extend use of state-of-the-art customer relationship management tools  Broaden food chain partnership business model  Focus on global flagship brands and deliver packaged solutions to differentiated customer segmentsPage 24 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • MaterialScience –World-Class Applications Research Bayseal ® Baytherm® Creates a seamless air Combines high mechanical barrier system working like a strength with high insulating building envelope capacity and low weight Makrolon® DurFlex® Forming lightweight exterior Improving noise reduction car body parts from and economics of rail track polycarbonate operations Bayblend® FR Bayfol Reflex ® A new safety concept for car Actuators out of polymers batteries to make housings give tactile feedback precisely flame retardant adjusted to requirements Makrofol®ID Baycusan® Film for ID cards providing Solvent-free polyurethane scratch resistance and based polymers for cosmetic protecting against counterfeit applicationsPage 25 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Opportunity Emerging MarketsPage 26 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Emerging Markets –Significant Growth Momentum 2010 Group Sales break down; ∆% yoy Fx adjusted +18% 64% 36% +3% Developed markets Emerging markets1 ¹ Emerging markets include: Latin America, Asia w/o Japan, Australia,Page 27 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011 New Zealand, Africa and Middle East incl. Turkey, Eastern Europe
    • BRIC - Countries Can CollectivelyBecome a 10bn Euro Business in 2015Sales in € bn ~6.0bn6 2.9bn3 >2bn2 1.6bn ~1.0bn1 ~0.8bn 0.5bn 0.5bn0 2010 2015 2010 2015 2010 2015 2010 2015Page 28 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Bayer is One of The Leading InternationalHealthCare Companies in China Strong growth  Driven by Pharmaceuticals (+17% yoy) HealthCare 2010 €823m +15% y-o-y (Fx-adj.)*  Pharma portfolio includes established branded products as well as innovative products like Nexavar, Scilin Insulin and Xarelto Significant investment commitment  Approx. 5,300 employees (2010)  €100m over 5 years to set-up a global R&D center in China Top products growth in 2010* Glucobay +22%  Beijing manufacturing site expansion Ultravist +16% (~€45m through 2015) Aspirin Cardio +15% Avelox +14%  Partnership with Tsinghua University Adalat +10% (joint drug discovery, student support) All growth rates y-o-y Fx-adj. * People‘s Republic of ChinaPage 29 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • CropScience in Brazil – Gained Share inOne of the World’s Largest Ag Markets  Brazil is the 2nd largest market for CropScience  Bayer is one of the leading suppliers and growing strongly  Bayer gained market share in each of the past 3 years  2010 Crop Protection performance driven by strong sales increase in insecticides and herbicides, especially with new products  BioScience growth driven by cotton CropScience sales (in €m) seed CAGR  Risk management systems in place to 847 +19% 676 724 limit the potential impact of reduced 421 493 credit availability; established barter 2006 2007 2008 2009 2010 businessPage 30 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • €1bn New Investment Planat MaterialScience in China Asia/Pacific is leading the recovery Commitment to growth in China China already is the world’s largest PCS  €2.1bn investment program in integrated market polymer site in Shanghai, China until 2012 China is set to become the world’s largest PUR  New investment of approx. €1bn in Shanghai market by 2015 by 2016 to  Increase MDI capacity to 1,000kt/year  More than double PCS capacity to 500kt/year  Increase HDI capacity, new 50kt/year line planned  Transfer of PCS Headquarters from Leverkusen to Shanghai  Increasing downstream presence (investment of €110m by 2012) PCS = Polycarbonates PUR = PolyurethanesPage 31 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • More Innovation Less AdministrationPage 32 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Restructuring Program Initiated Contribution by Subgroup Savings Initiative  Savings and efficiency initiative at Holding & Admin. HealthCare, CropScience and HealthCare corporate level ~12%  Annual cost savings of €800m starting 2013, reinvestment of ~50%  One-time-charges of around €1bn by ~54% ~34% end of 2012  Plans include reductions of 4,500 people CropScience  2,500 new hires in growth and innovation, particularly in emerging marketsPage 33 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Efficient Use of Cash  Funding organic growth  CapEx budget 2011: €1.5bn for PPE  Deleveraging balance sheet  Compliant with single A credit rating category  Cash return to shareholders  Dividend policy: Pay out 30-40% of Core EPS  Share buyback: No priority  Acquisitions  Focus is on organic growth, complemented by bolt-on acquisitionsPage 34 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Full Year 2011 –Group Outlook Sales ∆ Fx and portfolio adjusted, EBITDA pre-special items 2011E 2011E 2010 ∆ Original Update Sales 4-6% 5-7% to (Fx & portf. €35.1bn +8% adjusted) €35-36bn €36-37bn adj. Improve toward €7.1bn +10% > €7.5bn EBITDA €7.5bn Core EPS €4.19 +15% ~10% ∽15% Outlook depends on specific planning assumptions as detailed in the Annual/ Quarterly ReportPage 35 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Full Year 2011 –Guidance By Subgroup – Q2 Update Unchanged: HealthCare Low- to mid-single digit increase of sales and small increase of adj. EBITDA Unchanged: Pharma Low- to mid-single digit increase of sales and improvement of adj. EBITDA-margin Consumer Unchanged: Health Mid-single digit growth of sales and adj. EBITDA Unchanged: High-single-digit percentage higher sales and growth of adj. CropScience EBITDA by about 20% - or more if the season progresses well in 2nd half Updated: High-single-digit percentage raise of sales. Adj. EBITDA still MaterialScience expected to increase at a higher rate than sales, although we regard this target as increasingly ambitious. Q3’11: Sales and adj. EBITDA in line with prior-year level Outlook based on Fx and portfolio adj. sales and EBITDA pre-special items Outlook depends on specific planning assumptionsPage 36 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011 as detailed in the Annual/ Quarterly Report
    • AppendixPage 37 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • 2011 – R&D and CapEx Budgets R&D 2011E: ~€3.1bn CapEx (PPE) 2011E: ~€1.5bn HealthCare MaterialScience HealthCare MaterialScience 2.1bn 0.2bn 0.4bn 0.6bn thereof Pharma 1.8bn 8% 8% CropScience 26% 44% 0.7bn 24% 24% 67% 12% 67% 1% 18% Reconciliation Reconciliation CropScience 0.05bn 0.2bn 0.3bn €15bn R&D and Capital Investment Plan until 2013 2013 €15bn R&D and Capital Investment Program untilPage 38 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • HealthCare –Business Set-up Pharmaceuticals Consumer Care Medical Care Animal Health • Specialty Medicine • Non-prescription • Blood glucose • Food animal drugs monitoring systems products • General Medicine and accessories • Vitamins and • Companion nutritional • Medical devices animal products supplements (imaging and therapeutic procedures) Leading positions in certain Global # 2 A leader in medical devices Global # 4 therapeutic categoriesPage 39 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • HealthCare –Key Data 2nd Quarter 2nd Quarter Change FY FY Change EUR million 2010 2011 % 2009 2010 % Sales 4,305 4,208 -2.3 15,988 16,913 +5.8 Pharmaceuticals 2,748 2,666 -3.0 10,467 10,908 +4.2 Consumer Health 1,557 1,542 -1.0 5,521 6,005 +8.8 EBIT 595 786 +32.1 2,640 1,861 -29.5 Special items (189) (51) (372) (1,169) EBIT before special items 784 837 +6.8 3,012 3,030 +0.6 EBITDA 1,065 1,105 +3.8 4,148 4,116 -0.8 Special items (57) (51) (320) (289) EBITDA before special items 1,122 1,156 +3.0 4,468 4,405 -1.4 EBITDA margin before special items 26.1% 27.5% 27.9% 26.0% Gross cash flow 759 760 +0.1 3,153 2,948 -6.5 Net cash flow 666 636 -4.5 3,431 3,320 -3.2Page 40 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Crop Science –Business Set-up Crop Protection Environmental Science BioScience • Insecticides • Professional Products • Seeds & Traits • Fungicides • Consumer Products • Herbicides • Seed Treatment Global # 2 The leader in this area Committed emerging player – access to technologiesPage 41 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • CropScience –Key Data 2nd Quarter 2nd Quarter Change FY FY Change EUR million 2010 2011 % 2009 2010 % Sales 1,884 1,943 +3.1 6,510 6,830 +4.9 Crop Protection / BioScience 1,685 1,757 +4.3 5,927 6,180 +4.3 Environmental Science 199 186 -6.5 583 650 +11.5 EBIT 187 272 +45.5 798 261 -67.3 Special items (66) (81) (219) (526) EBIT before special items 253 353 +39.5 1,017 787 -22.6 EBITDA 314 405 +29.0 1,311 767 -41.5 Special items (66) (66) (197) (526) EBITDA before special items 380 471 +23.9 1,508 1,293 -14.3 EBITDA margin before special items 20.2% 24.2% 23.2% 19.0% Gross cash flow 224 304 +35.7 1,043 546 -47.7 Net cash flow 782 823 +5.2 745 1,399 87.8Page 42 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Material Science –Business Set-up Coatings, Adhesives, Coatings, Adhesives, Polycarbonates Polycarbonates Polyurethanes Polyurethanes Specialties Specialties • Application in automotive • Rigid foams are used for • Input materials for coatings, (i.e. for weight reduction) insulation in construction, logistics adhesives and the cold chain • Construction • Coatings for vehicles, industrial (i.e. integrated heat and light • Elastic foams are used for comfort coatings, corrosion protection applications for furniture, car and management) other vehicle seats and • Adhesives for various applications • Electronics & IT mattresses • Functional films and development • CD/DVD/Blu-ray • Further applications include businesses equipment housing or structural parts in automotive (i.e. fenders) * VOC = volatile organic compounds Industry-leading position Industry-leading position Industry-leading positionPage 43 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • MaterialScience –Key Data 2nd Quarter 2nd Quarter Change FY FY Change EUR million 2010 2011 % 2009 2010 % Sales 2,689 2,782 +3.5 7,520 10,154 +35.0 EBIT 228 236 +3.5 (266) 780 • Special items 0 0 (140) 0 EBIT before special items 228 236 +3.5 (126) 780 • EBITDA 373 372 -0.3 341 1,356 • Special items 0 0 (105) 0 EBITDA before special items 373 372 -0.3 446 1,356 • EBITDA margin before special items 13.9% 13.4% 5.9% 13.4% Gross cash flow 293 288 -1.7 319 1,058 • Net cash flow 62 (15) • 849 763 -10.1Page 44 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Reporting Events and AGM Date Event Publication Thursday, 3rd Quarter 2011 Results Investor Conference Call October 27, 2011 Stockholders’ Newsletter China Conference 2011, November 16-18, 2011 Shanghai Tuesday, Investor Conference Call 2011 Annual Report February 28, 2012 Thursday, 1st Quarter 2012 Results Investor Conference Call April 26, 2012 Stockholders’ Newsletter Friday, Annual General Meeting April 27, 2012 Tuesday, 2nd Quarter 2012 Results Investor Conference Call July 31, 2012 Stockholders’ Newsletter Tuesday, 3rd Quarter 2012 Results Investor Conference Call October 30, 2012 Stockholders’ NewsletterPage 45 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
    • Investor Relations ContactsDr. Alexander RosarHead of Investor RelationsPhone: +49-214-30-81013E-mail: alexander.rosar@bayer.comDr. Jürgen Beunink Ute MenkePhone: +49-214-30-65742 Phone: +49-214-30-33021E-mail: juergen.beunink@bayer.com E-mail: ute.menke@bayer.comPeter Dahlhoff Judith NestmannPhone: +49-214-30-33022 Phone: +49-214-30-66836E-mail: peter.dahlhoff@bayer.com E-mail: judith.nestmann@bayer.comFabian Klingen Dr. Olaf WeberPhone: +49-214-30-35426 Phone: +49-214-30-33567E-mail: fabian.klingen@bayer.com E-mail: olaf.weber@bayer.comPage 46 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011