Delivering world-class Product Supply at Bayer CropScience

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Bayer CropScience Annual Press Conference 2012. Achim Noack, Head of Product Supply

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Delivering world-class Product Supply at Bayer CropScience

  1. 1. Delivering world-classProduct Supply atBayer CropScienceAchim Noack – Head of Product Supply
  2. 2. Forward-Looking StatementsThis 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. 3. We have established world-classProduct Supply High Flexibility Optimal Capital Cost Employment Leadership Safety Supply Reliability Excellence Excellence Leadership, Performance & ExpertisePage 3 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
  4. 4. We have worked hard on safety excellenceand are aiming to improve it further 0.50 RIR * 0.40 0.30 0.20 0.46 0.44 0.39 0.33 0.33 0.30 0.32 0.26 0.10 0.25 0.14 0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012/08YTD • Occupational Health & Safety: Global road & driving safety, safety in agricultural operations, ergonomic risks • Process & Plant Safety: Specific training for 6,000 employees • Transport Safety: Transport safety audits, global training programs* No. of Recordable Incidents per 200,000 worked hours Page 4 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
  5. 5. We are defending our costleadership positionContinuously improved CoGS/net sales ratio ∆ = 3.5 pp* ∆ = 1.0 pp 2010 2011 YTD YTD 08/2011 08/2012 We combat inflation by… • Leveraging our technical expertise • Fostering continuous improvement culture • Optimizing our global asset footprint • Strengthening cooperation with strategic suppliersPage 5 • Delivering world-class Product Supply at Bayer CropScience • September, 2012 *percentage point
  6. 6. We are investing ~ €2 bn in assets(2011–2016) to foster future growth ~ €0.5 bn Seeds ~ €0.2 bn Research & Development • Breeding Stations • Greenhouses ~ €1.3 bn • Seed processing Product Supply • Seeds innovation in facilities RTP/USA • Modernization of ~ € 2 bn • Capacity expansion chemical research • Consolidation multi- center in purpose unit Monheim/Germany • Advanced process • Building up Biologics technology in Davis, USAPage 6 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
  7. 7. In particular, we are expanding the capacityof our top Crop Protection active ingredientsBrands Project Location CAPEX Total Expansion of Trifloxystrobin capacity Muttenz Dormagen Expansion of Prothioconazole capacity Kansas City ~ €200 m Expansion of SC Formulation capacity Villefranche Knapsack Capacity expansion of Frankfurt Glufosinate Ammonium Muskegon More CAPEX investment planned to further expand our capacity …Page 7 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
  8. 8. We are investing in our Seeds assetsto increase our global footprintPage 8 • Delivering world-class Product Supply at Bayer CropScience • September, 2012

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