Bayer CropScience
Dedicated to Fruits & Vegetables

Dr. Rüdiger Scheitza – Board Member: Strategy & Business Management
Monheim, 13 December 2012
We are addressing global trends
across Bayer CropScience
Customers expect safer and “sustainable” food

Global and “sustainably-sourced” food
 Safer retailers have more stringent residue
reduction targets
 Quality food for healthy nutrition and well-being

Tougher regulations and registration of synthetic products;
 Year-round demand increases global trade of fresh produce
higher demand for biologics
 Tougher regulations and registration of synthetic products

 Global retailers expect sustainable agricultural production
Biologics often effective in very small quantities
 Rising importance of partnerships along food value chain
Green Products market forecast to triple
to almost 4 bn USD to drive “sustainable crop solutions”
  Innovation needed by 2020




Page 2 • Vegetable Future Forum • December 2012
Fruits & Vegetables account for
the largest share of our portfolio
 Sugar Crops



 Rice
                                                       Other
                                                                                                      Fruits & Vegetables
 Cotton



 Oilseeds



 Soy
                                                                                                                 € 1.7bn
                                                                                                          2011 sales in F&V
 Corn

                                                                                                                  € 3bn
 Cereals                                                                                                   2020 sales target
                                             Bayer CropScience sales 2011*
                                                         * by major crop groups excluding industrial business and non-agricultural solutions

Page 3 • Vegetable Future Forum • December 2012
Strategic importance of Fruits & Vegetables
for Bayer CropScience
2011 market: F&V Crop Protection and Seeds app. 20% of global market*
• Bayer CropScience is a global leader in F&V Crop Protection
• We are no. 4 in the global vegetable seeds market with
    strong aspirations for future growth
• Above-average growth rates expected during coming
    years due to increasing demand                           F&V Market 2011 €13.6bn*


2011 Bayer CropScience: A leading global player in specialty crops
• We boast an impressive portfolio of products & services,
    and a promising pipeline – including Biologics
• Our pipeline features new actives which answer F&V
    crop protection market and food chain needs
• Our professional teams in major F&V markets are               App 14% Market Share
    dedicated to meeting and beating customer needs
                                                                         *Source: Philips McDougall

Page 4 • Vegetable Future Forum • December 2012
We are executing our four-pillar company
strategy for sustainable growth
 1                                        2                      3                       4




 Rejuvenate the                             Reinvent customer-   Rebalance and           Extend Seeds
 core Crop Protection                       centricity along     refocus innovation      footprint in
 business                                   value chain                                  focused crops


• Enhancing our                          • Driving                   Innovating the      • Strengthening
  Crop Protection                            commercial              convergence             our position in
  portfolio by                               excellence in           between chemistry       established crops
  focusing on core                           marketing and           and biology             and developing
  brands and new                             sales                                           business in soy
  active ingredients                                                                         and wheat




 Page 5 • Vegetable Future Forum • December 2012
1st strategic pillar



Rejuvenating our Crop Protection business

   Focusing on superior active ingredients and core brands…




                                                  Fungicides   Insecticides

                                                  Herbicides   Biologics

                                                  SeedGrowth   Vegetable seeds




Page 6 • Vegetable Future Forum • December 2012
2nd strategic pillar

Reinventing customer-centricity
across the entire value chain



                                      seed companies




                                                                                                   Food processors
                                       Distributors /




                                                                                                                     Food retailers
                                                                    Advisors
                                                        Retailers




                                                                                         Traders
 Bayer CropScience

   Our offers                                                                  Growers                                                Consumers




Creating win-wins by translating consumer needs into grower benefits

 Striving for high quality, improved yields and reduced post-harvest losses of fresh produce

 Meeting food quality and safety standards from seed-to-shelf

 Fulfilling demands for safety and training of farmers through e.g. Food Chain Partnerships




Page 7 • Vegetable Future Forum • December 2012
3rd strategic pillar

Our AgraQuest acquisition is a perfect fit for
our strategy to excel in integrated solutions

             AgraQuest is leading in innovative biological pest management solutions
             based on natural microorganisms with an excellent technology platform and a
             promising pipeline


             Acquired in Q3 2012 for $ 425m plus milestone payments, AgraQuest
             strengthens our strategically important Fruits & Vegetables business and
             provides opportunities in other crops and markets



            With AgraQuest, we aim to become the world
                                                 leader in Sustainable Crop
            Solutions, integrating and leveraging our skills and innovation capacities   across
            seeds,
            traits, chemical crop protection and biological control and services


Top AgraQuest brands:




 Page 8 • Vegetable Future Forum • December 2012
3rd strategic pillar

We have all competencies to lead the way
in Sustainable Crop Solutions


 Depending on specific market
                                                                    Molecular Biology, Small
 conditions, individual solutions for                               Molecules and Biologics
 customer needs can be made                         Molecular       can be efficient solution-
 available through different                        Biology         providers for unmet customer
 technology platforms                                               needs – each requiring a
                                                                    different expertise


                                                  Grower needs
                                                  Disease control
                                                   Weed control
                                                   Pest control
                             Synthetic              Plant health
                                                                        Biologics
                             Chemistry



Page 9 • Vegetable Future Forum • December 2012
With our Biologics pillar, we are enriching
our portfolio

                                                   •   Herbicides
                       Small                       •   Fungicides
                       Molecules                   •   Insecticides        • Weed, pest &
                                                   •   SeedGrowth            disease control       Grower
                                                                           • Resistance            benefits:
                                                                             management
                                                   • Microorganisms
                                                   • Microbial                                 •    Higher yield
                       Biologics                       extracts                                •    Supreme quality
                                                                                               •    Convenience
                                                                                               •    Risk
                                                                                                    management
                                                   • Canola, cotton, ri    • Conventional
                                                       ce, soy, wheat, v     seeds
                       Seeds                           egetables           • GMO seeds
                                                                           • Traits


                                         Sustainable Crop Solutions

  Innovation allows us to offer differentiated solutions

Page 10 • Vegetable Future Forum • December 2012
3rd strategic pillar

Sustainable Crop Solutions are
a core focus of our new R&D strategy
             Sustainability                                         Plant health
             Delivering Sustainable                                Exploiting expertise Small
             Crop Solutions to beat                                Molecules, Seeds and
             customer expectations                                 Biologics to build a unique
                                                                   position in plant health




                                                    World-class
                                                   R&D portfolio
Rebalancing
 innovation                                                                       Collaboration
       Investing equally in Seeds/                                   Expanding our network
       Biologics and Chemistry                                       of collaborations to
       to create an integrated &                                     leverage the full potential
       effective global R&D                                          of open innovation
       organization


Page 11 • Vegetable Future Forum • December 2012
4th strategic pillar

In line with our strategy, we will continue to
expand our Seeds footprint in focus crops

     We are aiming to double our share of business in Seeds by 2016




                                                              ~20%


                                                   ~13%
                             11%
      10%


                                                                                Vegetable Seeds showing consistent
      2010                  2011                   2012E      2016E             growth of 9% CAGR in past five years
                                                           Sales in € million
         Seeds sales                                                            High aspirations for
         Share of overall business in Seeds                                     further growth expansion



Page 12 • Vegetable Future Forum • December 2012
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.
Page 14 • Vegetable Future Forum • December 2012

Bayer CropScience Dedicated to Fruits & Vegetables

  • 1.
    Bayer CropScience Dedicated toFruits & Vegetables Dr. Rüdiger Scheitza – Board Member: Strategy & Business Management Monheim, 13 December 2012
  • 2.
    We are addressingglobal trends across Bayer CropScience Customers expect safer and “sustainable” food Global and “sustainably-sourced” food Safer retailers have more stringent residue reduction targets Quality food for healthy nutrition and well-being Tougher regulations and registration of synthetic products; Year-round demand increases global trade of fresh produce higher demand for biologics Tougher regulations and registration of synthetic products Global retailers expect sustainable agricultural production Biologics often effective in very small quantities Rising importance of partnerships along food value chain Green Products market forecast to triple to almost 4 bn USD to drive “sustainable crop solutions” Innovation needed by 2020 Page 2 • Vegetable Future Forum • December 2012
  • 3.
    Fruits & Vegetablesaccount for the largest share of our portfolio Sugar Crops Rice Other Fruits & Vegetables Cotton Oilseeds Soy € 1.7bn 2011 sales in F&V Corn € 3bn Cereals 2020 sales target Bayer CropScience sales 2011* * by major crop groups excluding industrial business and non-agricultural solutions Page 3 • Vegetable Future Forum • December 2012
  • 4.
    Strategic importance ofFruits & Vegetables for Bayer CropScience 2011 market: F&V Crop Protection and Seeds app. 20% of global market* • Bayer CropScience is a global leader in F&V Crop Protection • We are no. 4 in the global vegetable seeds market with strong aspirations for future growth • Above-average growth rates expected during coming years due to increasing demand F&V Market 2011 €13.6bn* 2011 Bayer CropScience: A leading global player in specialty crops • We boast an impressive portfolio of products & services, and a promising pipeline – including Biologics • Our pipeline features new actives which answer F&V crop protection market and food chain needs • Our professional teams in major F&V markets are App 14% Market Share dedicated to meeting and beating customer needs *Source: Philips McDougall Page 4 • Vegetable Future Forum • December 2012
  • 5.
    We are executingour four-pillar company strategy for sustainable growth 1 2 3 4 Rejuvenate the Reinvent customer- Rebalance and Extend Seeds core Crop Protection centricity along refocus innovation footprint in business value chain focused crops • Enhancing our • Driving Innovating the • Strengthening Crop Protection commercial convergence our position in portfolio by excellence in between chemistry established crops focusing on core marketing and and biology and developing brands and new sales business in soy active ingredients and wheat Page 5 • Vegetable Future Forum • December 2012
  • 6.
    1st strategic pillar Rejuvenatingour Crop Protection business Focusing on superior active ingredients and core brands… Fungicides Insecticides Herbicides Biologics SeedGrowth Vegetable seeds Page 6 • Vegetable Future Forum • December 2012
  • 7.
    2nd strategic pillar Reinventingcustomer-centricity across the entire value chain seed companies Food processors Distributors / Food retailers Advisors Retailers Traders Bayer CropScience Our offers Growers Consumers Creating win-wins by translating consumer needs into grower benefits  Striving for high quality, improved yields and reduced post-harvest losses of fresh produce  Meeting food quality and safety standards from seed-to-shelf  Fulfilling demands for safety and training of farmers through e.g. Food Chain Partnerships Page 7 • Vegetable Future Forum • December 2012
  • 8.
    3rd strategic pillar OurAgraQuest acquisition is a perfect fit for our strategy to excel in integrated solutions AgraQuest is leading in innovative biological pest management solutions based on natural microorganisms with an excellent technology platform and a promising pipeline Acquired in Q3 2012 for $ 425m plus milestone payments, AgraQuest strengthens our strategically important Fruits & Vegetables business and provides opportunities in other crops and markets With AgraQuest, we aim to become the world leader in Sustainable Crop Solutions, integrating and leveraging our skills and innovation capacities across seeds, traits, chemical crop protection and biological control and services Top AgraQuest brands: Page 8 • Vegetable Future Forum • December 2012
  • 9.
    3rd strategic pillar Wehave all competencies to lead the way in Sustainable Crop Solutions Depending on specific market Molecular Biology, Small conditions, individual solutions for Molecules and Biologics customer needs can be made Molecular can be efficient solution- available through different Biology providers for unmet customer technology platforms needs – each requiring a different expertise Grower needs Disease control Weed control Pest control Synthetic Plant health Biologics Chemistry Page 9 • Vegetable Future Forum • December 2012
  • 10.
    With our Biologicspillar, we are enriching our portfolio • Herbicides Small • Fungicides Molecules • Insecticides • Weed, pest & • SeedGrowth disease control Grower • Resistance benefits: management • Microorganisms • Microbial • Higher yield Biologics extracts • Supreme quality • Convenience • Risk management • Canola, cotton, ri • Conventional ce, soy, wheat, v seeds Seeds egetables • GMO seeds • Traits Sustainable Crop Solutions Innovation allows us to offer differentiated solutions Page 10 • Vegetable Future Forum • December 2012
  • 11.
    3rd strategic pillar SustainableCrop Solutions are a core focus of our new R&D strategy Sustainability Plant health Delivering Sustainable Exploiting expertise Small Crop Solutions to beat Molecules, Seeds and customer expectations Biologics to build a unique position in plant health World-class R&D portfolio Rebalancing innovation Collaboration Investing equally in Seeds/ Expanding our network Biologics and Chemistry of collaborations to to create an integrated & leverage the full potential effective global R&D of open innovation organization Page 11 • Vegetable Future Forum • December 2012
  • 12.
    4th strategic pillar Inline with our strategy, we will continue to expand our Seeds footprint in focus crops We are aiming to double our share of business in Seeds by 2016 ~20% ~13% 11% 10% Vegetable Seeds showing consistent 2010 2011 2012E 2016E growth of 9% CAGR in past five years Sales in € million Seeds sales High aspirations for Share of overall business in Seeds further growth expansion Page 12 • Vegetable Future Forum • December 2012
  • 13.
    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.
  • 14.
    Page 14 •Vegetable Future Forum • December 2012