Werner Baumann, CFO
Second quarter 2011 -Bayer continues positive momentum
08/30 – 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.
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 2
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 3
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 underway
2nd Quarter 2011 –Bayer Continues Positive Momentum
Q2‘11 ∆%
€ million € million
Sales 9,252 +1 (+5)
EBITDA
- reported 1,906 +6
- adjusted 2,035 +6
EBIT
- reported 1,273 +26
- adjusted 1,417 +12
Net income 747 +41
Net cash flow 1,530 -1
Free operating cash flow 1,232 +4
EPS
- reported 0.90€ +41
- core 1.29€ +11
( ) = Fx & portfolio adjusted
Highlights
Solid business expansion
Adjusted EBITDA improved, goodseason for CropScience, slightexpansion at HealthCare, MaterialScience remained levelyoy
Reported EBIT impacted by net special charges of €144m
2011 Group financial outlook reiterated
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 4
2nd Quarter 2011 –Breakdown By Segment
Sales adj. EBITDA
2010 2011 ∆% (adj.) 2010 2011 ∆%
HealthCare 4,305 4,208 -2 (+2) 1,122 1,156 +3
Pharma 2,748 2,666 -3 (+0.5) 772 807 +5
Consumer Health 1,557 1,542 -1 (+4) 350 349 0
CropScience 1,884 1,943 +3 (+9) 380 471 +24
MaterialScience 2,689 2,782 +3 (+8) 373 372 0In € million, ( ) = Fx & portfolio adjusted
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 5
LatinAmerica
Eastern Europe
Africa & Middle East
Emerging Asia³
2nd Quarter 2011 –Emerging Markets Leading The Growth
Emerging Economies
EmergingEconomies¹
+7%
Others²+2%
USA+4%
36%20%
Western Europe+6%
Q2 2011 Group sales by region
Group €9,252m; +5%
~1,300
+5%
~900
+4%
~600
+9%
~500
+14%
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, Canada³ Emerging Asia = Asia w/o Japan, Australia, New Zealand
In € million, ∆% yoy Fx adjusted
36%
10%
34%
20%
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 6
+0.3
2nd Quarter 2011 –Cash Flow And Net Debt Development
Q2 2011 Cash Flow Net Debt DevelopmentIn € billion
7.1 7.4
In € million
GCF oFCF
1,532
Invest-ments
298 1,232
∆ %y-o-y +19% +4%
NCFcont.
1,530
-1% -18%Q1´11 Q2´11
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 7
Fiscal 2010 –Operating Performance On Track
FY‘10 ∆%
€ million € million
Sales 35,088 +13 (+8)
EBITDA
- reported 6,286 +8
- adjusted 7,101 +10
EBIT
- reported 2,730 -9
- adjusted 4,452 +18
Net income 1,301 -4
Net cash flow 5,773 +7
Free operating cash flow 4,152 +12
EPS
- reported 1.57 -8
- core 4.19 +15
( ) = Fx & portfolio adjusted
Highlights
Achieved group financial targets in 2010
Strong year at MaterialScience –HealthCare and CropSciencebelow
Net income diminished by high special charges
Strong operating cash flow – netfinancial debt reduced
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 8
Selected Indicators 2006-2010 -Track Record of Performance
3.9 4.3 3.65.4
Net cash flow* (€ billion)
2006 2007 2008 2009
5.8
2010
02
3
4
5
2.993.80 4.17
3.64
Core earnings per share* (€)
2006 2007 2008 2009
4.19
2010
04
8
12
16
20 17.5
12.214.2
9.7
Net financial debt*, ** (€ billion)
2006 2007 2008 2009 2010
7.9
* 2006 - 2008 from continuing operations ** year-end data
2006 2007 2008
19.3% 20.9% 21.1% 20.8%
2009
EBITDA before special items and margin* (€ billion)
20.2%
2010
5.66.8 6.9 6.5
7.1
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 9
Building A World-Class
Innovation Company
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 10
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 11
Building A World-Class Innovation Company
Build on leading industry position in all 3 subgroups
Enhance competitive position
Portfolio Growth Productivity
Target is to deliver mid-single digit organic sales growth in 2011and to invest €15bn in growth during 2011 - 2013
Invest in innovation capabilities
Maximize value of new product pipeline strength
Realize emerging market opportunity
Decomplex structures and processes
Implement two-year group restructuring plan
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 12
Break-down excluding reconciliation
Sales 2010: €35.1bn
CropScienceAgrochemicals and seeds & traits, global #2 in agrochemicals
€6.8bn
MaterialSciencePolyurethanes and polycarbonates,global #1/2
€10.2bn
HealthCarePharmaceuticals €10.9bn,leading positions in key categories
Consumer Health €6.0bn,OTC pharmaceuticals, blood glucose meters and veterinary medicines, global #2-4
€16.9bn
30%50%
20%
Bayer –A Leader in Its Markets
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 13
What it does Status
Xarelto inhibits blood clot formation 1st indication launched/ filed; phase III
Riociguat lowers blood pressure in the lung phase III
Nexavar inhibits enzymes important for tumor growth
launched, additional indications in phase II/III
Regorafenib inhibits enzymes important for tumor growth phase III
Alpharadin targeted treatment of bone metastases in prostate cancer
Alsympca trial (phase III) stopped early on success
VEGF Trap-Eye inhibits formation of new blood vessels
1st indication filed; phase III
Car
diol
ogy
Onc
olog
yEy
eD
isea
ses
HealthCare-Pharma Pipeline Maturing
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 14
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:
Heparin parenteral administration Vitamin K antagonists (e.g. Warfarin) narrow therapeutic window, slow onset of action, unpredictable pharmacology
Xarelto
The blood coagulation cascade
Xarelto Inhibits the Blood-clottingProcess at a Pivotal Stage
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
Sec. Prevention in ACS
Stroke Prevention in Atrial Fibrillation (AF)
VTE-Treatment
VTE-Prevention in Medically Ill Patients
1-4
Indication Phase III Program Status
Filed in US, EU
Filed in EU / US-filing early 2012e
Data late 2011e / early 2012e
Data reported; further analysis underway
LaunchedVTE-Prevention after elective hip and knee replacement Surgery
Xarelto: Addressing Medical Needs Across a Wide Range of Patients
Page 15
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 16
Xarelto Demonstrated an Excellent Clinical Profile in Key Indications
VTE prevention after orthopedic surgery(RECORD 1- 4 trials)
Superior efficacy: 52% relative risk reduction* 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
with numerically lower major bleedings Comparator: enoxaparin followed by vitamin K antagonistEINSTEIN-Extension Superior efficacy: 82% reduction of recurrent VTE Low incidence of major bleeding. No stat. significant difference Comparator: placebo
DVT treatment and Extended secondary prevention of VTE(EINSTEIN-DVT and EINSTEIN-Extension trial)
Stroke prevention in atrial fibrillation(ROCKET-AF trial)
Non-inferiority vs. warfarin in ITT and per-protocol population. Active treatment superior to warfarin in reducing the risk of stroke and non-CNS embolism in the safety population.Composite of major and clinically relevant non major bleeding similarComparator: vitamin K antagonist
VTE: Venous thromboembolism; DVT: Deep veinthrombosis; ITT: Intention to treat
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
1-4
VEGF Trap-Eye –Addressing Major Eye Diseases
Obstruction of central retinal vein may lead to vision loss and other serious complications.
> 100,000 people in the US and > 66,000 people in key EU countries are estimated to suffer from CRVO.
In myopic patients, the eyeball is too long –this situation puts strain on retina and may lead to pathological changes (e.g. irregular vessel growth) in the back of the eye.
Severe myopia is common in Asia; in Japan, mCNV is the second most common cause of blindness.
Diabetic Macular Edema (DME) Wet AMD is due to abnormal blood vessel
growth in the eye; the disease accounts for approx. 90% of AMD-related blindness.
Wet AMD is the leading cause of acquired blindness in the elderly.
Approx. 1.5 million patients annually in the US.
wet AMD
Central Retinal Vein Occlusion (CRVO) myopic CNV
AMD: Age-related macular degenerationCNV: Choroidal neovascularization
Most prevalent cause of vision loss in patients with diabetes.
Clinically significant DME is a leading cause of acquired blindness in the adults aged <50years.
Approx. 370,000 patients suffer from clinically significant DME in the US, with 95,000 new cases / year.
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 17
VEGF Trap-Eye – Key Data from Clinical Studies Suggest a Competitive Profile
Wet Age-Related Macular Degeneration (wet AMD)
Phase III program incl. 2,457 patients (VIEW 1, VIEW 2) Primary efficacy endpoint met, non-inferiority compared to Lucentis
demonstrated One year data demonstrated potential for less frequent dosing with
comparable vision maintenance
Central Retinal Vein Occlusion (CRVO)
Phase III program incl. 354 patients (COPERNICUS, GALILEO) Primary efficacy endpoint met, demonstrating significant
improvement in vision after six months of treatment compared to sham-injections
Diabetic Macular Edema (DME)
Phase II study incl. 219 patients (DaVinci) VEGF Trap-Eye vs. laser treatment:
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 initiated
VEGF Trap-Eye was generally well tolerated and the most common adverse events were those typically associated 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.
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 19
VEGF Trap-Eye –Status of Clinical Program
Diabetic macular edema (DME)
Wet age-related maculardegeneration (AMD)
Central retinal vein occlusion (CRVO)
Myopic choroidal neovascularizytion (CNV)
Indication Phase III Program Status
Filed
Filing 2012e
Phase III ongoing
Phase III ongoing
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 20
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
Radium-223 deposition Radium-223: highly localized tumor cell killing
HRPC: Hormone-refractory prostate cancer
Bone metastases
Expected 2011 Major Pipeline Newsflow
Project / Study When expected?
Xarelto ATLAS TIMI 51; phase III in secondaryprevention of acute coronary syndrome (ACS)
Data end 2011e / early 2012
Xarelto EINSTEIN PE; phase III in treatment of PE andsecondary VTE prevention
Data end 2011e / early 2012
Xarelto Potential newsflow on submissions 2011e
Nexavar Phase III in NSCLC and phase III in thyroid cancer
Completion end 2011e / 2012e
VEGF Trap-Eye Two-year data from wet AMD phase III VIEW program 2011e
Page 21 • Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
2000 - 200923 new agrochemical active ingredients launched, generated sales of €2bn in 2009
2010 - 2012ESix new agrochemical substances with sales potential of more than €1bn to be launched
Numerous early-stage research and early development projects in Crop Protection and BioScience
CropScience - Innovation Leadership in AgChemicals, Promising BioScience Pipeline
Expect 18 new BioScience products to be launched 2010 - 2016E
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 22
2002* 2009 2010 2015 E 2018 E
240
503
687
>1,000
~1,400
*2002 sales pro-forma Bayer + Aventis CropScience
Planned sales development Key growth driversin € million
Planned: CAGR 12%
+37%
Fast growing established business in cotton, canola, rice and vegetables
Regional expansion and introduction of new varieties
Exploit traits potential through licensing agreements
Extension of our crop-portfolio to soybean and cereals
Increase of BioScience’s share of CropScience R&D expenditures
R&D capacities strengthened through acquisition of Athenix (2009)
Growth Platform Ag BioScience -Strongly Expanded in 2010
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 23
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 24
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 segments
CropScience – Translate R&D More Effectively Into Sales
MaterialScience –World-Class Applications Research
Makrofol®ID Film for ID cards providing scratch resistance and protecting against counterfeit
DurFlex®
Improving noise reduction and economics of rail track operations
Bayfol Reflex ®
Actuators out of polymers give tactile feedback precisely adjusted to requirements
Bayblend® FRA new safety concept for car batteries to make housings flame retardant
Baycusan®
Solvent-free polyurethane based polymers for cosmetic applications
Makrolon®
Forming lightweight exterior car body parts from polycarbonate
Baytherm®
Combines high mechanical strength with high insulating capacity and low weight
Bayseal ®
Creates a seamless air barrier system working like a building envelope
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 25
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
Opportunity
Emerging Markets
Page 26
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 27
2010 Group Sales break down; ∆% yoy Fx adjusted
36%64%
Developed markets Emerging markets1
+3%
+18%
¹ Emerging markets include: Latin America, Asia w/o Japan, Australia,New Zealand, Africa and Middle East incl. Turkey, Eastern Europe
Emerging Markets –Significant Growth Momentum
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 28
1.6bn
0
1
2
3>2bn
2010 2015
Sales in € bn6
0.5bn~0.8bn
2010 2015
0.5bn
~1.0bn
2010 2015
2.9bn
~6.0bn
2010 2015
BRIC - Countries Can Collectively Become a 10bn Euro Business in 2015
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 29
Strong growth Driven by Pharmaceuticals (+17% yoy)
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
Beijing manufacturing site expansion (~€45m through 2015)
Partnership with Tsinghua University (joint drug discovery, student support)
HealthCare 2010 €823m +15% y-o-y (Fx-adj.)*
Adalat
Avelox
Top products growth in 2010*
All growth rates y-o-y Fx-adj.* People‘s Republic of China
Aspirin CardioUltravist
Glucobay +22%
+10%
+15%
+14%
+16%
Bayer is One of The Leading International HealthCare Companies in China
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 30
CropScience sales (in €m)CAGR+19%
421
2006
493
2007
724
2009
676
2008
847
2010
CropScience in Brazil – Gained Share in One 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 ofthe past 3 years
2010 Crop Protection performancedriven by strong sales increase in insecticides and herbicides, especiallywith new products
BioScience growth driven by cottonseed
Risk management systems in place to limit the potential impact of reduced credit availability; established barter business
€1bn New Investment Planat MaterialScience in China
€2.1bn investment program in integrated polymer site in Shanghai, China until 2012
New investment of approx. €1bn in Shanghai 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)
China already is the world’s largest PCS market
China is set to become the world’s largest PURmarket by 2015
Commitment to growth in ChinaAsia/Pacific is leading the recovery
PCS = PolycarbonatesPUR = Polyurethanes
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 31
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
More Innovation
Less Administration
Page 32
CropScience
Restructuring Program Initiated
Contribution by Subgroup
HealthCareHolding & Admin.
Savings and efficiency initiative at HealthCare, CropScience andcorporate level
Annual cost savings of €800mstarting 2013, reinvestment of ~50%
One-time-charges of around €1bn by end of 2012
Plans include reductions of 4,500 people
2,500 new hires in growth and innovation, particularly in emerging markets
Savings Initiative
~54%~34%
~12%
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 33
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011
CapEx budget 2011: €1.5bn for PPE
Funding organic growth
Focus is on organic growth, complemented by bolt-on acquisitions
Compliant with single A credit rating category
Deleveraging balance sheet
Cash return to shareholders
Acquisitions
Efficient Use of Cash
Page 34
Dividend policy: Pay out 30-40% of Core EPS Share buyback: No priority
2010 ∆ 2011EOriginal
2011EUpdate
Sales(Fx & portf. adjusted)
€35.1bn +8% 4-6%€35-36bn
5-7% to €36-37bn
adj. EBITDA €7.1bn +10% Improve toward
€7.5bn > €7.5bn
Core EPS €4.19 +15% ~10% ∽15%
Sales ∆ Fx and portfolio adjusted, EBITDA pre-special items
Full Year 2011 –Group Outlook
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 35
Outlook depends on specific planning assumptionsas detailed in the Annual/ Quarterly Report
HealthCareUnchanged:Low- to mid-single digit increase of sales and small increase of adj. EBITDA
PharmaUnchanged:Low- to mid-single digit increase of sales and improvement of adj. EBITDA-margin
Consumer Health
Unchanged:Mid-single digit growth of sales and adj. EBITDA
CropScienceUnchanged:High-single-digit percentage higher sales and growth of adj. EBITDA by about 20% - or more if the season progresses well in 2nd half
MaterialScience
Updated: High-single-digit percentage raise of sales. Adj. EBITDA still 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
Full Year 2011 –Guidance By Subgroup – Q2 Update
Outlook based on Fx and portfolio adj. sales and EBITDA pre-special itemsOutlook depends on specific planning assumptions
as detailed in the Annual/ Quarterly Report• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 36
Appendix
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 37
1%
2011 – R&D and CapEx Budgets
MaterialScience0.2bn
HealthCare2.1bnthereof Pharma1.8bn
MaterialScience0.6bn
HealthCare0.4bn
Reconciliation0.05bn
67%
24%
8%
Reconciliation0.2bn
CropScience0.7bn
CropScience0.3bn
CapEx (PPE) 2011E: ~€1.5bnR&D 2011E: ~€3.1bn
€15bn R&D and Capital Investment Plan until 2013
24%
67%
8%44%
18%
26%
12%
€15bn R&D and Capital Investment Program until 2013
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 38
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 39
HealthCare –Business Set-up
Consumer Care Medical CarePharmaceuticals
• Blood glucose monitoring systems and accessories
• Medical devices (imaging and therapeutic procedures)
• Non-prescriptiondrugs
• Vitamins and nutritional supplements
• Specialty Medicine
• General Medicine
Leading positions in certain therapeutic categories
Animal Health
• Food animalproducts
• Companion animal products
Global # 4Global # 2 A leader in medical devices
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 40
EUR million2nd Quarter
20102nd Quarter
2011Change
%FY
2009FY
2010Change
%
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 -3.2
HealthCare –Key Data
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 41
Crop Science –Business Set-up
• Insecticides
• Fungicides
• Herbicides
• Seed Treatment
• Professional Products
• Consumer Products
• Seeds & Traits
Crop Protection Environmental Science BioScience
Global # 2 The leader in this area Committed emerging player –access to technologies
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 42
EUR million2nd Quarter
20102nd Quarter
2011Change
%FY
2009FY
2010Change
%
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 87.8
CropScience –Key Data
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 43
Material Science –Business Set-up
• Application in automotive (i.e. for weight reduction)
• Construction(i.e. integrated heat and light management)
• Electronics & IT
• CD/DVD/Blu-ray
• Rigid foams are used for insulation in construction, logistics and the cold chain
• Elastic foams are used for comfort applications for furniture, car and other vehicle seats and mattresses
• Further applications include equipment housing or structural parts in automotive (i.e. fenders)
• Input materials for coatings, adhesives
• Coatings for vehicles, industrialcoatings, corrosion protection
• Adhesives for various applications
• Functional films and developmentbusinesses
* VOC = volatile organic compounds
Polycarbonates Coatings, Adhesives,SpecialtiesPolyurethanesPolycarbonates Coatings, Adhesives,SpecialtiesPolyurethanes
Industry-leading position Industry-leading position Industry-leading position
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 44
EUR million2nd Quarter
20102nd Quarter
2011Change
%FY
2009FY
2010Change
%
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 -10.1
MaterialScience –Key Data
Reporting Events and AGMDate Event Publication
Thursday,October 27, 2011 Investor Conference Call 3rd Quarter 2011 Results
Stockholders’ Newsletter
November 16-18, 2011 China Conference 2011, Shanghai
Tuesday,February 28, 2012 Investor Conference Call 2011 Annual Report
Thursday,April 26, 2012 Investor Conference Call 1st Quarter 2012 Results
Stockholders’ NewsletterFriday,April 27, 2012 Annual General Meeting
Tuesday, July 31, 2012 Investor Conference Call 2nd Quarter 2012 Results
Stockholders’ Newsletter Tuesday, October 30, 2012 Investor Conference Call 3rd Quarter 2012 Results
Stockholders’ Newsletter
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 45
Investor Relations ContactsDr. Alexander RosarHead of Investor RelationsPhone: +49-214-30-81013E-mail: [email protected]
Dr. Jürgen BeuninkPhone: +49-214-30-65742E-mail: [email protected]
Ute MenkePhone: +49-214-30-33021E-mail: [email protected]
Peter DahlhoffPhone: +49-214-30-33022E-mail: [email protected]
Judith NestmannPhone: +49-214-30-66836E-mail: [email protected]
Fabian KlingenPhone: +49-214-30-35426E-mail: [email protected]
Dr. Olaf WeberPhone: +49-214-30-33567E-mail: [email protected]
• Bayer Investor Presentation • US West Coast Roadshow • Werner Baumann, CFO • Aug/Sep 2011Page 46