Delivering world-class
Product Supply at
Bayer CropScience

Achim Noack – Head of Product Supply
Forward-Looking Statements

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.
We have established world-class
Product Supply

                                                                        High Flexibility




                                Optimal Capital                                                      Cost
                                 Employment                                                       Leadership



                                                   Safety                               Supply Reliability
                                                 Excellence                               Excellence



                                                Leadership, Performance & Expertise



Page 3 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
We have worked hard on safety excellence
and 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
We are defending our cost
leadership position
Continuously 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 suppliers



Page 5 • Delivering world-class Product Supply at Bayer CropScience • September, 2012         *percentage point
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, USA




Page 6 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
In particular, we are expanding the capacity
of our top Crop Protection active ingredients


Brands                            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
We are investing in our Seeds assets
to increase our global footprint




Page 8 • Delivering world-class Product Supply at Bayer CropScience • September, 2012

Delivering world-class Product Supply at Bayer CropScience

  • 1.
    Delivering world-class Product Supplyat Bayer CropScience Achim Noack – Head of Product Supply
  • 2.
    Forward-Looking Statements This presentationmay 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.
    We have establishedworld-class Product Supply High Flexibility Optimal Capital Cost Employment Leadership Safety Supply Reliability Excellence Excellence Leadership, Performance & Expertise Page 3 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
  • 4.
    We have workedhard on safety excellence and 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.
    We are defendingour cost leadership position Continuously 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 suppliers Page 5 • Delivering world-class Product Supply at Bayer CropScience • September, 2012 *percentage point
  • 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, USA Page 6 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
  • 7.
    In particular, weare expanding the capacity of our top Crop Protection active ingredients Brands 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.
    We are investingin our Seeds assets to increase our global footprint Page 8 • Delivering world-class Product Supply at Bayer CropScience • September, 2012