Investor Handout
Meet Management
June 2013 I New York
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.
Figures for 2012 have been restated due to changes in
accounting policies relating to the accounting standards
IAS 19R (“Employee Benefits”) and IFRS 11 (“Joint
Arrangements”). In addition, Bayer changed accounting
for the stock-based compensation program.
Disclaimer
Our Mission –
Innovation and Customer Value
Science For A Better Life
Science / Innovation
Better Life
 Bayer is an innovation company
 With a strong “innovation portfolio”
 Addressing new growth areas
 Capable of identifying and using
breakthrough innovations
 Bayer is innovative in many ways:
Products, technologies, processes,
business models, strategies
 Bayer products improve
the quality of people’s lives
 Bayer has an excellent understanding
of human, animal and plant health,
as well as of high-quality materials
 Respect for people and nature
is an essential part of our values
Page 1 • Bayer Investor Presentation • Meet Management • June 2013
Our Business Portfolio –
Leading in Its Markets
€18.6bn
HealthCare
Pharmaceuticals €10.8bn,
leading positions in core indications
22%
Consumer Health €7.8bn,
OTC pharmaceuticals, blood glucose
meters, contrast media and veterinary
medicines, global #2-5
48%
30%
Sales 2012: €39.7bn
€8.4bn
CropScience
Chemical crop protection & biologicals,
global #2, seeds & traits
€11.5bn
MaterialScience
Polyurethanes and polycarbonates,
global #1/2
Break-down excluding reconciliation
Page 2 • Bayer Investor Presentation • Meet Management • June 2013
We are Generating the Vast Majority of our
Business in the Life-Sciences
Breakdown excluding Reconciliation
Sales 2012
Adj. EBITDA 2012*
Human
Health
Material
Science
Material
Science
LifeSciences
45%
30%
15%
85%
3%
22%
Animal
Health
Plant Health
*EBITDA before special items
Page 3 • Bayer Investor Presentation • Meet Management • June 2013
Strong Presence in the Emerging Markets
In € million, ∆% yoy Fx adjusted
2012 Group Sales
Highlights Emerging Economies
Emerging
Economies¹
+7%
Developed
Economies
+3%
BRIC
 +12% driven mainly by our LifeScience businesses
 +16% driven by CropScience,
but also MaterialScience strong
63%
37%
 +19% with both Consumer Health
and MaterialScience +25%
 +7% driven by CropScience
and MaterialScience
Group €39,741m; +5%
Page 4 • Bayer Investor Presentation • Meet Management • June 2013
 +13% with HealthCare +23%
and CropScience +20%
¹ Emerging economies include: Latin America, Asia w/o Japan, Australia,
New Zealand, Africa and Middle East incl. Turkey, Eastern Europe
Our Track Record –
Delivered Growth and Performance
Sales (€ billion)
EBITDA before special items margin* (%)
39.7
35.1
32.4
22
36.5
21.1
32.9
21
31.2
20.9
20.8
20.8
20.8
2011
2012
20.2
20
2007
2008
2009
2010
2011
2007
2012
EBITDA before special items* (€ billion)
7.6
6.8
2009
2010
Core earnings per share* (€)
8.3
6
5.30
4.83
5
7.1
6.9
2008
4.19
4.17
6.5
4
3.80
3.64
3
2007
2008
2009
2010
2011
2012
2007
2008
2009
2010
2011
2012
* 2007 - 2008 from continuing operations
Page 5 • Bayer Investor Presentation • Meet Management • June 2013
Life-Science Businesses Off To
A Good Start
Page 6 • Bayer Investor Presentation • Meet Management • June 2013
Q1 2013 – Total Group:
Life-Sciences Commence Positively
Sales
in € million
% currency & portfolio adj.
10,054
EBIT
EBITDA
Core EPS
in € million
adjusted*
in € million
in €
10,266
2,443
1,631
Q1’12
Q1’13
+4%
Q1’12
2,453
1,771
Q1’13
Q1’12
+9%
Q1’13
0%
1.67
1.70
Q1’12
Q1’13
+2%
*before special items
Page 7 • Bayer Investor Presentation • Meet Management • June 2013
Full Year 2013 Outlook Projects Further
Growth And Higher Earnings
Sales ∆ Fx and portfolio adjusted, EBITDA before special items
2012
∆ vs. 2011
2013e
Sales
€39.7bn
+5%
+4-5% to
~€41bn*
adj. EBITDA
€8.3bn
+9%
mid-single-digit %
increase
Core EPS
€5.30
+10%
high-single-digit %
increase
Page 8 • Bayer Investor Presentation • Meet Management • June 2013
*Assuming Fx rate of $1.29 per €
Outlook depends on specific planning assumptions as detailed in the Annual Report
2012
CAGR 2015e
Pharma: Sales Growth
Acceleration Driven by New
Products & Emerging Markets
Page 9 • Bayer Investor Presentation • Meet Management • June 2013
Pharma – New Products Drive Growth and
Rejuvenate Portfolio
Sales from new Pharma pipeline in €m
>2,500
Q1: 244
Xarelto: 155
Eylea: 49
Stivarga: 40
 Roll-out in wAMD underway, approval in
CRVO 2H 2013e
 Launched in US and Japan, CHMP opinion
1H 2013e
~1,000
368
 Approved in the US, filed in EU (Dec. 2012)
2012
 Submitted for PAH and CTEPH (Feb. 2013),
priority review in the US
86
2011
 Strong launch execution, targeting ~€600m
sales in 2013
2013e
2015e
Page 10 • Bayer Investor Presentation • Meet Management • June 2013
CTEPH: chronic thromboembolic pulmonary hypertension; CRVO: central retinal
vein occlusion; PAH: pulmonary arterial hypertension;
wAMD: wet age-related macular degeneration
Xarelto –
Development in Selected Markets
Status as of mid May 2013
Germany: most successful launch ever in the cardiovascular market;
1
market share at ~33% (dabigatran ~11%, apixaban ~1%)
Japan: 2-week prescription limitation lifted end of April 2013;
2
st
market share at ~16% (market share as of 1 of April: 9%)
France: Xarelto maintained leadership over dabigatran;
market share1 increased to ~17% (dabigatran ~16%)
Brazil: successful launch; market share3 ~37% (dabigatran ~17%);
Xarelto with 45% new patients and 55% switchers
Switzerland: excellent launch performance, making Xarelto the No. 1 in the
retail market for anticoagulants; market share at ~34%
US4: steady uptake; surpassing warfarin in NBRx share in the cardiology AC
market: Xarelto at ~38% (warfarin ~36%, dabigatran ~12%, apixaban ~ 14%)
Page 11 • Bayer Investor Presentation • Meet Management • June 2013
Source: IMS; 1 sales market share anticoagulants (AC) ex manufacturer prices, retail; 2
anticoagulants retail and hospitals, 3 sales market share AC , retail; 4:marketed by J&J;
Xofigo – A New Treatment for CRPC
Patients with Bone Metastases
 ~900,000 men diagnosed worldwide, up to
90% develop bone metastases1
Bone marrow
Osteoclast
 First in class alpha-pharmaceutical delivering
high energy, short ranging alpha-particles
 44% improvement in overall survival in phase
III trial
 Demonstrated delay in time to first
skeletal-related event
α-particle
radiation
 Approved in the US for CRPC with
symptomatic bone metastases and no known
visceral metastatic disease
 Submitted for CRPC in Europe (Dec 2012)
Global peak sales potential ≥ €1bn
Page 12 • Bayer Investor Presentation • Meet Management • June 2013
CRPC: castration-resistant prostate cancer;
1: GLOBOCAN 2008,World Health Organization
Strengthening Women‘s Health Business –
Acquisition of Conceptus, Inc.
 Bayer successfully completed the public tender offer to acquire all shares in
Conceptus for $31/share (>90% tendered, transaction value of ~$1.1bn)
 US-based company developing the Essure® procedure, the leading nonsurgical permanent birth control method proven by >700,000 procedures
 Significant synergies expected from leveraging existing business power
Essure ®
Permanent
IUD (Mirena)
Longterm
IUD (Skyla)
Shortterm
Oral contraceptives (e.g. YAZ)
No children
Active family planning
Family planning finalized
Page 13 • Bayer Investor Presentation • Meet Management • June 2013
Aspire to Become the Leading
OTC Company
Page 14 • Bayer Investor Presentation • Meet Management • June 2013
Consumer Care – Aspire to Become the
World-Leading OTC Company
In € billion, ∆% yoy Fx adjusted
Sales Development*
+6%
3.9
3.5
 Built global #2 position through
combination of organic growth and
targeted acquisitions
 Track record of performance –
continued to gain share in 2012
 Product portfolio of some of the
world‘s most recognized brands
1.4
 Further growth opportunities in
selected emerging markets
2003
Global #6
2011
2012
Global #2
* Sales Consumer Care segment
Page 15 • Bayer Investor Presentation • Meet Management • June 2013
Strong Consumer Brands Build Equity for
Decades
Brands
Years Old
2012 Sales €m
3-Year CAGR
113
970*
7%
81
197#
12%
78
101
1%
69
196
5%
68
269
12%
40
250
9%
19
323
12%
Page 16 • Bayer Investor Presentation • Meet Management • June 2013
*Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx)
#Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus.
Innovation at OTC – New Product
Development with Aspirin
Page 17 • Bayer Investor Presentation • Meet Management • June 2013
Strengthening Our OTC Business –
Bayer to Acquire Steigerwald GmbH
 Bayer launched an offer to acquire Steigerwald Arzneimittelwerk GmbH, with
closing expected at the beginning of July 2013*
 Steigerwald generated net sales of €61.3m in 2012 (~90% in Germany)
 Steigerwald produces herbal drugs, its 2 core brands make ~90% of sales
 Significant sales synergies expected due to our complementary CC business
Iberogast®
Laif®
 Treatment of functional
dyspepsia & irritable
bowel syndrome
 St John’s wort based
medicine for treatment of depression
* subject to regulatory approval
Page 18 • Bayer Investor Presentation • Meet Management • June 2013
2012
CAGR 2015e
CropScience: Targeting Above
Market Growth at Benchmark
Profitability
Page 19 • Bayer Investor Presentation • Meet Management • June 2013
Leading the Way in Integrated
Crop Solutions
Herbicides
Fungicides
Insecticides
SeedGrowth
Chemical
Crop
Protection




Biological
Crop
Protection
 Microorganisms
 Microbial
extracts
Seeds
 Canola, cotton,
rice, soy, wheat,
vegetables
 Weed, pest &
disease control
 Stress
tolerance
Better harvest
with improved:
 Yield
 Quality
 Conventional
seeds
 GMO seeds
 Traits
 Processability
 Sustainability
Integrated Crop Solutions
Page 20 • Bayer Investor Presentation • Meet Management • June 2013
GMO: Genetically modified organism
CropScience – Translate R&D Effectively
into New Product Sales
Sales from new Crop Protection
products launched since 2006 in €bn
∆% y-o-y, () Fx adj.
2012 Highlights
~1.9
 Xpro (+61%) - New cereal fungicide with
yield-boosting effect
~1.4
 Adengo herbicide family (+85%) Excellent weed control in corn and cereals,
also in case of glyphosate resistance
1.1
+60%
 Belt (+54%) - Broad-spectrum insecticide
with fast and long-lasting action
0.7
 Launch of Luna fungicide in the US
 First launch of new SeedGrowth family
EverGol/Emesto in Canada
0.3
0.02
2007
2009
2011
2012 2013e 2015e
Page 21 • Bayer Investor Presentation • Meet Management • June 2013
Bolt-on Acquisitions to Strengthen
CropScience Portfolio
Region
Biologics
Seeds
Technology
Product / Portf.
 AgraQuest (07/12)
~€375m
> 30 countries
Biologics
Fungicides
Insecticides
 Prophyta (01/13)
€25m (provisional)
Germany
Biologics
Fungicides
Nematicides
 Wehrtec,
Wehrmann (03/13)
€37m + milestones
Brazil
Seeds
Germplasm
Soybean
 Abbott & Cobb (07/12)
~€43m
US
Seeds
Watermelon
Melon
 Hornbeck (04/11)
€30m
US
Seeds, Breeding
Germplasm
Soybean
 Raps GbR (10/11)
€26m
Europe
Seeds, Breeding
Oilseed rape
Page 22 • Bayer Investor Presentation • Meet Management • June 2013
MaterialScience: Aspire to Earn
a Premium Over Cost of Capital
Page 23 • Bayer Investor Presentation • Meet Management • June 2013
Selling Price Increases & Savings Not
Sufficient to Protect Earnings
In € bn
11.5
10.8
10.2
8%
 Market growth trends intact, key
products with mid-single digit volume
growth
 High raw material prices and
significant capacity additions led to
global overcapacities and margin
pressure
6%
6%
6.6
6.2
5.4
 Going forward demand & supply
balance expected to improve
1.4
2010
Sales
1.3
1.2
2011
Raw Mat. & Energy Costs
2012
Adj. EBITDA
Page 24 • Bayer Investor Presentation • Meet Management • June 2013
CFROI
 Anticipated margin improvement
supported by fresh savings from new
efficiency initiative
Profitability Improvement Through New
Efficiency Initiative Until 2015
 New efficiency initiative improves cost structure and increases adjusted EBITDA
margin by 150bp
 Initiative comprises more than 100 measures across the entire value chain
Examples
Business Units
 Consolidation of system houses
 Pricing excellence programs
Organization
 Optimization of regional structures (e.g. Canada & US)
Production
 Further initiatives to improve asset productivity (e.g. maintenance
schedules, engineering setup)
Supply Chain
 Optimization of logistics services
Selling &
Administration
 Further reduce costs by leveraging established global ERP
platform and standardized processes
ERP: enterprise resource planning
Page 25 • Bayer Investor Presentation • Meet Management • June 2013
years
… and Optimistic for Future
Developments
Page 26 • Bayer Investor Presentation • Meet Management • June 2013
Solid Start to 2013 – Track Record of
Performance Expected to Continue
 Business performance predominantly driven by HealthCare and CropScience
contributing 70% of sales and 85% of earnings
 Significant new product opportunities at our Life-Science businesses
 Continued strong emerging markets business momentum
 Full-year 2013 group outlook projects higher sales and earnings
 Aspire to grow HealthCare and CropScience by 6% CAGR until 2015
Page 27 • Bayer Investor Presentation • Meet Management • June 2013
Appendix
Page 28 • Bayer Investor Presentation • Meet Management • June 2013
HealthCare –
Building Growth Momentum, Improving Margins
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
Priority
Target
2013*
2012
Aspiration
2015
mid-single-digit CAGR ~6%
% to ~€19bn towards €22bn
 HealthCare: Accelerate sales growth
€18.6bn
 Pharma: Successfully commercialize new
products and realize emerging markets
(EM) opportunity
 New product sales¹
 EM growth
CAGR ~7%
€10.8bn mid-single-digit
% to ~€11bn towards €13bn
 Consumer Health: Aspire to become #1
OTC company
 HealthCare: Improve margins
 Pharma
 Consumer Health
€368m
7.3%
€7.8bn
27.5%
29.9%
24.2%
~€1bn
>€2.5bn
high-single
high-single
digit %
digit %
mid-single-digit
~€9bn
% to ~€8bn
slightly up
towards 29%
slightly up
≥31%
at level
~25%
¹ Xarelto, Eylea, Stivarga, Radium-223 dichloride and Riociguat; subject to regulatory approval
*Assuming Fx rate of $1.29 per €
Outlook depends on specific planning assumptions as detailed in the Annual Report
Page 29 • Bayer Investor Presentation • Meet Management • June 2013
Q1 2013 – HealthCare: New Products and
Consumer Care Drive Growth
In € million, ∆% yoy, () = Fx & portf. adjusted
Q1 2013 Sales
Consumer
Health
+3% (+5%)
36%
1,879
Earnings
Pharma
+2% (+5%)
1,277
2,564
Adj.
EBIT*
Adj.
EBITDA*
+8%
1,181
953 +11%
832 +12%
861
740
520
HealthCare €4,443m; +2% (+5%)
Price
+1%
Volume
+4%
Fx
-3%
Portfolio
0%
441
445
Q1‘12 Q1‘13
+1%
341
610 +17%
343
+1%
Q1‘12 Q1‘13
*before special items
Page 30 • Bayer Investor Presentation • Meet Management • June 2013
Full Year 2012 –
HealthCare
In € million, ∆% yoy, () = Fx & portf. adjusted
2012 Sales
Consumer
Health
+8% (+4%)
36%
7,806
Earnings
Pharma
+9% (+4%)
Adj.
EBIT*
Adj.
EBITDA*
10,798
5,119 +9%
4,702
3,788 +13%
3,233 +9%
3,367
2,972
2,042
HealthCare €18,604m; +8% (+4%)
Price
0%
Volume
+4%
Fx
+4%
Portfolio
0%
1,730
FY‘11
1,886 +9%
1,325
FY‘12
FY‘11
2,328 +14%
1,460 +10%
FY‘12
*before special items
Page 31 • Bayer Investor Presentation • Meet Management • June 2013
CropScience – Above Market Growth at
Benchmark Profitability
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
2012
Target
2013*
Aspiration
2015
+12.4%
to €8.4bn
high-single
digit %
towards €9bn
CAGR ~6%
towards
€10bn
 Translate R&D effectively into new
product sales (CP products launched since 2006)
€1.1bn
~€1.4bn
~€1.9bn
 Extend seeds footprint
+14%
 Maintain industry leading profitability level
24.2%
Priority
 Above-market sales growth
Page 32 • Bayer Investor Presentation • Meet Management • June 2013
double-digit % double-digit %
growth p.a.
growth
slight
improvement
~24%
CP: Crop Protection
*Assuming Fx rate of $1.29 per €
Outlook depends on specific planning assumptions as detailed in the Annual Report
Q1 2013 – CropScience: Continuously Strong
In Favorable Market Environment
In € million, ∆% yoy, () = Fx & portf. adjusted
Q1 2013 Sales
Environmental
Science
-12% (-10%)
Earnings
Crop Protection
+9% (+11%)
164
Adj.
EBIT*
Adj.
EBITDA*
2,111
1,081 +10%
489
969 +12%
984
864
Seeds
+1% (0%)
CropScience €2,764m; +6% (+7%)
Price
+3%
Volume
+4%
Fx
-2%
Portfolio
0%
Q1‘12 Q1‘13
Q1‘12 Q1‘13
*before special items
Page 33 • Bayer Investor Presentation • Meet Management • June 2013
Full Year 2012 –
CropScience
In € million, ∆% yoy, () = Fx & portf. adjusted
2012 Sales
Environmental
Science
+9% (+5%)
Earnings
Crop Protection
+16% (+13%)
680
962
Adj.
EBITDA*
6,741
Adj.
EBIT*
2,026 +22%
1,654
1,543 +32%
1,168
Seeds
+17% (+14%)
CropScience €8,383m; +16% (+12%)
Price
+1%
Volume
+12%
Fx
+4%
Portfolio
-1%
FY‘11
FY‘12
FY‘11
FY‘12
*before special items
Page 34 • Bayer Investor Presentation • Meet Management • June 2013
MaterialScience – Higher Asset Utilization &
Efficiency Measures Are Driving Performance
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
2012
Target 2013
Aspiration 2015
 Sales +2.9% to €11.5bn
 Sales to slightly increase
to ~€12bn
 Grow business (volume)
above global GDP
 Defend market leading
positions in PCS and PUR
 Realize 150 bp margin
contribution through new
efficiency initiative
 Optimize asset structure
in Germany
 CFROI# > WACC
(volumes +2%)
 Adj. EBITDA +8% to
€1,262m
 Adj. EBITDA to match
2012 figure
 CFROI# 5.7% < WACC
7.1%
 Q2‘2013 vs Q1‘2013:
Sales to increase and adj.
EBITDA to significantly
increase
*Assuming Fx rate of $1.29 per €
#after reproduction
Outlook depends on specific planning assumptions as detailed in the Annual Report
Page 35 • Bayer Investor Presentation • Meet Management • June 2013
Q1 2013 – MaterialScience: Cost Pressure
Prevented A Better Performance
In € million, ∆% yoy, () = Fx & portf. adjusted
Q1 2013 Sales
Polycarbonates
-6% (-6%)
Earnings
Polyurethanes
+3% (+4%)
1,469
663
Adj.
EBIT*
Adj.
EBITDA*
279
204
-27%
CAS**
-3% (-3%) 467
IO***
+0% (+1%)
121
176
43 -65%
MaterialScience €2,775m; +0% (+0%)
Price
+4%
Volume
-4%
Fx
-1%
Portfolio
0%
*before special items
Page 36 • Bayer Investor Presentation • Meet Management • June 2013
Q1‘12 Q1‘13
**CAS: Coatings, Adhesives, Specialties
Q1‘12
Q1‘13
*** IO: Industrial Operations
Full Year 2012 –
MaterialScience
In € million, ∆% yoy, () = Fx & portf. adjusted
2012 Sales
Earnings
Polyurethanes
+12% (+8%)
Polycarbonates
-3% (-7%)
2,819
Adj.
EBIT*
Adj.
EBITDA*
5,987
1,171
1,262 +8%
CAS**
+3% (+4%) 1,972
589
613 +4%
714
IO***
+8% (+6%)
MaterialScience €11,491m; +6% (+3%)
Price
+1%
Volume
+2%
Fx
+4%
Portfolio
-1%
FY‘11
FY‘12
FY‘11
FY‘12
*before special items
**CAS: Coatings, Adhesives, Specialties
*** IO: Industrial Operations
Page 37 • Bayer Investor Presentation • Meet Management • June 2013
Q1 2013 – Regional Performance: Growth
Led by USA and Emerging Economies
In € million, ∆% yoy Fx adjusted
Q1 2013 Group Sales by Region
Emerging
Economies¹
+7%
USA
+8%
22%
Emerging Economies
+8%
~1,400
+8%
34%
~1,000
+13%
~700
32%
Western Europe
-3%
12%
-7%
~400
Others²
+8%
Group €10,266m; +4%
Page 38 • Bayer Investor Presentation • Meet Management • June 2013
Emerging
Asia³
Latin
America
Eastern
Europe
Africa &
Middle East
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 Zealand
Full Year 2012 –
Regional Performance
In € million, ∆% yoy Fx adjusted
2012 Group Sales by Region
Emerging
Economies¹
+7%
USA
+9%
21%
Emerging Economies
+5%
~5,700
+12%
~4,900
37%
+10%
~2,400
31%
~1,800
11%
Western Europe
0%
0%
Others²
+4%
Emerging
Asia³
Group €39,741m; +5%
Latin
America
Eastern
Europe
Africa &
Middle East
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 Zealand
Page 39 • Bayer Investor Presentation • Meet Management • June 2013
Q1 2013 –
Cash Flow And Net Debt Development
Cash Flow in € million, Net Debt in € billion
Q1 2013 Cash Flow
∆
y-o-y
Net Debt Development
GCF
NCF
Investments
oFCF
1,807
327
365
(38)
+13%
+38%
+43%
-100%
Page 40 • Bayer Investor Presentation • Meet Management • June 2013
+€491m
7.0
Dec 31, 2012
7.5
Mar 31, 2013
Full Year 2012 –
Cash Flow and Net Debt Development
Cash Flow in € million, Net Debt in € billion
2012 Cash Flow
∆
y-o-y
Net Debt Development
GCF
NCF
Investments
oFCF
4,556
4,531
1,930
2,601
-12%
-10%
+20%
-24%
Page 41 • Bayer Investor Presentation • Meet Management • June 2013
7.0
Dec 31, 2011
+€9m
7.0
Dec 31, 2012
Bayer HealthCare
Investor Handout – Meet Management
June 2013 – New York
Leading Positions in Key Healthcare
Markets
Sales Split by Segment 2012
Pharma
€10,798m
 Leading positions in key therapeutic categories
25%
21%
Consumer Care
€3,853m
 Global #2 in OTC-pharmaceuticals,
~€0.3bn dermatology business
58%
14%
7%
HealthCare €18,604m
Page 43 • Bayer Investor Presentation • Meet Management • June 2013
Medical Care
€2,650m
 #1 in fluid injection systems, #1 in contrast media,
#4 in blood glucose meters
Animal Health
€1,303m
 Global #5, #2 in parasiticides
Full Year 2012 –
Growth in All Segments
In € million, ∆% yoy, () = Fx & portf. adjusted
2012 Sales
Consumer
Health
+8% (+4%)
Earnings
Pharma
+9% (+4%)
36%
7,806
Adj.
EBIT*
Adj.
EBITDA*
10,798
5,119 +9%
4,702
3,788 +13%
3,233 +9%
3,367
2,972
2,042
HealthCare €18,604m; +8% (+4%)
Price
0%
Volume
+4%
Fx
+4%
Portfolio
0%
1,730
2011
1,886 +9%
1,325
2012
2011
2,328 +14%
1,460 +10%
2012
*before special items
Page 44 • Bayer Investor Presentation • Meet Management • June 2013
Full Year 2012 – Strong Business
Momentum in Emerging Markets
Sales in € million; ∆% y-o-y Fx adjusted
Emerging Economies
2012 Sales
USA
+6%
25%
24%
29%
Western
Europe -1%
Emerging
Economies¹
+8%
+12%
+8%
~2,100
~2,100
33%
14%
+9%
~1,100
+1%
~900
Others²
+1%
HealthCare €18,604m
Emerging
Asia³
Latin
America
Eastern
Europe
Africa &
Middle East
¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, ² Others = Japan, Australia, New Zealand, Canada
New Zealand, Africa and Middle East incl. Turkey, Eastern Europe
³ Emerging Asia = Asia without Japan, Australia, New Zealand
Page 45 • Bayer Investor Presentation • Meet Management • June 2013
Peak Sales Potential*
New Products Drive Pharma
Growth and Rejuvenate Portfolio
* from 5 new products
Page 46 • Bayer Investor Presentation • Meet Management • June 2013
New Product Pipeline
Combined* Peak Sales Potential >€5.5bn
Rivaroxaban
Regorafenib
Aflibercept
Radium-223
dichloride
Riociguat
2011
2012
2012
2013
2013e
First launches in first / main indication*
Page 47 • Bayer Investor Presentation • Meet Management • June 2013
*Combined peak sales potential for Xarelto, Stivarga, Eylea, Radium-223 dichloride
and Riociguat assuming approvals and launches planned
New Products Drive Growth and Rejuvenate
Portfolio
Sales from new Pharma pipeline in €m
>2,500
Q1: 244
Xarelto: 155
Eylea: 49
Stivarga: 40
 Roll-out in wAMD underway, approval in
CRVO 2H 2013e
 Launched in US and Japan, CHMP opinion
1H 2013e
~1,000
368
 Launched in the US, filed in EU (Dec. 2012)
2012
 Submitted for PAH and CTEPH (Feb. 2013),
priority review in the US
86
2011
 Strong launch execution, targeting ~€600m
sales in 2013
2013e
2015e
Page 48 • Bayer Investor Presentation • Meet Management • June 2013
CTEPH: chronic thromboembolic pulmonary hypertension; CRVO: central retinal
vein occlusion; PAH: pulmonary arterial hypertension;
wAMD: wet age-related macular degeneration
Xarelto –
Effective Anticoagulation For More Patients
1) Clinical
 Breadth of indications: met or exceeded primary
efficacy endpoint in 11/11 phase III studies
 Further phase III trials initiated, for example in the prevention of major
adverse cardiac events in patients with coronary or peripheral artery
disease
2) Regulatory
 Approved for secondary prevention after ACS in Europe
 Filed for sec. prevention of ACS in the US (Complete Response Letter March 2013)
3) Marketing
 VTE prevention following total knee/hip replacement surgery
 Stroke prevention in patients with atrial fibrillation (SPAF)
 Treatment of DVT, PE and to reduce the risk of recurrent DVT and
PE
Peak sales potential > €2bn
Page 49 • Bayer Investor Presentation • Meet Management • June 2013
SPAF: prevention of stroke and systemic embolism in patients with nonvalvular atrial fibrillation; DVT: deep vein thrombosis; VTE: venous
thromboembolism; ACS: acute coronary syndrome
Xarelto –
Strong Launch Execution
Sales in € million; ∆% Fx adj.
155
131
81
272
133
109
68
23
8
42
57
34
 Sales target 2013: ~€600m
11
8
 Sales advanced strongly in all
regions following further product
launches and indication
expansions
 Most successful launch ever in the
German cardiovascular market
67
31
 Sales 2012: €322m, exceeded
target
14
22
22
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13
US*
Ex-US
*Bayer reporting, not reflecting in-market sales
Page 50 • Bayer Investor Presentation • Meet Management • June 2013
Xarelto –
Development in Selected Markets
Status as of mid May 2013
Germany: most successful launch ever in the cardiovascular market;
1
market share at ~33% (dabigatran ~11%, apixaban ~1%)
Japan: 2-week prescription limitation lifted end of April 2013;
2
st
market share at ~16% (market share as of 1 of April: 9%)
France: Xarelto maintained leadership over dabigatran;
market share1 increased to ~17% (dabigatran ~16%)
Brazil: successful launch; market share3 ~37% (dabigatran ~17%);
Xarelto with 45% new patients and 55% switchers
Switzerland: excellent launch performance, making Xarelto the No. 1 in the
retail market for anticoagulants; market share at ~34%
US4: steady uptake; surpassing warfarin in NBRx share in the cardiology AC
market: Xarelto at ~38% (warfarin ~36%, dabigatran ~12%, apixaban ~ 14%)
Page 51 • Bayer Investor Presentation • Meet Management • June 2013
Source: IMS; 1 sales market share anticoagulants (AC) ex manufacturer prices, retail; 2
anticoagulants retail and hospitals, 3 sales market share AC , retail; 4:marketed by J&J;
Xarelto Uptake
Japan2
Germany1
United States3
50%
40%
34%
33%
30%
22%
20%
20%
16%
11%
10%
0%
1%
May
2013
Jan
2012
Xarelto
Pradaxa
1.5%
<1%
May
2013
June
2012
Eliquis
Page 52 • Bayer Investor Presentation • Meet Management • June 2013
Jan
2012
May
2013
Source: IMS
1: Ex-Mnf Sales Market Share (incl. PI) in all dosage strengths and pack sizes,
2: Sales Market Share (Ret+Hosp) in %,
3: Retail Sales Market Share, marketed by J&J
Eylea –
Targeting Different Eye Diseases
1) Clinical
 Positive phase III data in wet AMD and CRVO reported
 Positive phase III in mCNV (mean improvement of 12 letters in best-corrected visual
acuity1 from baseline at week 24 vs. a loss of 2 letters in sham control (p<0.0001))
 Data from phase III studies in DME 2H 2013e
2) Regulatory
 Filed for CRVO in EU (Dec 2012) and Japan (Jan 2013)
 Filing in mCNV 2H 2013e
3) Marketing
 Bayer has marketing rights ex-US2, launched in first markets in wet
AMD end 2012
 First launches in CRVO planned for 2H 2013
Peak sales potential ≥ €1bn
Page 53 • Bayer Investor Presentation • Meet Management • June 2013
1: as measured on the Early Treatment Diabetic Retinopathy Scale; 2: Regeneron
has US marketing rights; AMD: age-related macular degeneration; CRVO: central
retinal vein occlusion; mCNV: myopic choroidal neovascularization
Eylea – Developed for the Treatment of
Various Back of the Eye Diseases
Wet age-related macular degeneration (wet AMD)
 One of the leading cause of severe vision loss
 Globally an estimated 12 million patients in the 50+ age group
Diabetic macular edema (DME)
 The most frequent cause of blindness in young and mid-aged adults
 Globally the treatable patient population for DME is estimated ~6.2 million
Central retinal vein occlusion (CRVO)
 90% occur in patients aged ~50, it can affect all ages
 A common retinal vascular disorder affecting ~2.5 million people globally
Myopic choroidal neovascularization (myopic CNV)
 High prevalence in Asian population
 In Japan and China treatable population of mCNV is approx. 2 million, with
approx. 0.2 million new cases/year
Eylea has been in-licensed from Regeneron; Bayer has exclusive marketing rights ex-US
patient numbers are Bayer estimates
Page 54 • Bayer Investor Presentation • Meet Management • June 2013
Stivarga –
Major Progress in Our Oncology Portfolio
1) Clinical
 Positive phase III data in mCRC and mGIST
 Phase III in 2nd line HCC initiated (RESORCE) (May 2013)
 Phase III in colorectal cancer (adjuvant therapy) expected to start 2H 2013
2) Regulatory
 Filed for mCRC in EU - CHMP opinion expected 1H 2013
 Filing for mGIST in Europe planned after expected approval in mCRC
 Filed for mGIST in Japan (priority review) (Feb 2013)
3) Marketing
 Launched in mCRC (Sep 2012) / mGIST (Feb 2013) in the US
 Launched in mCRC in Japan (May 2013)
Peak sales potential ≥ €1bn
Page 55 • Bayer Investor Presentation • Meet Management • June 2013
mCRC: metastatic colorectal cancer; mGIST: metastatic gastrointestinal
stromal tumors; HCC: hepatocellular carcinoma
Stivarga –
Three Dimensional Mode of Action
Inhibition of proliferation
of certain tumor cells
Inhibition of tumor
microenvironment signals
Inhibition of
neoangiogenesis
 Regorafenib is an oral tumor deactivation agent that potently blocks multiple protein
kinases, including kinases involved in:
 Tumor angiogenesis (VEGFR1, -2, -3, TIE2)
 Oncogenesis (KIT, RET, RAF-1, BRAF, BRAFV600E)
 Tumor microenvironment (PDGFR, FGFR)
Page 56 • Bayer Investor Presentation • Meet Management • June 2013
VEGFR: vascular endothelial growth factor receptor; TIE2: tyrosine kinase with
immunoglobulin-like and EGF-like domains ; PDGFR: platelet derived growth factor
receptor; FGFR: fibroblast growth factor receptor;
Xofigo – A New Treatment for Prostate
Cancer Patients with Bone Metastases
1) Clinical
 Phase III study in CRPC patients with bone metastases stopped early on
success
 Studies in earlier settings of prostate cancer, including combination
studies and studies in other tumors (such as breast cancer and
osteosarcoma) planned
2) Regulatory
 Approved in the US for patients with CRPC and symptomatic bone
metastases
 Submitted for treating bone metastases in patients with CRPC in Europe
3) Marketing
 Launched in the US
Peak sales potential ≥ €1bn
Page 57 • Bayer Investor Presentation • Meet Management • June 2013
CRPC: castration-resistant prostate cancer
Xofigo –
Unique Mode of Action
Bone marrow
Tumor cells
Osteoblast
Osteoclast
Radium-223
deposition
Newly
formed bone
 First in class alpha-pharmaceutical
delivering high energy, short ranging
alpha-particles
 ~900,000 men diagnosed worldwide, up
to 90% have radiological evidence of
bone metastases1
 Demonstrated 44% improvement in
overall survival in phase III trial
 Demonstrated delay in time to first
skeletal-related event
Targets new bone,
e.g. bone metastases
α-particle
radiation
Irradiates adjacent tumour cells leading
to highly localized tumor cell killing
Page 58 • Bayer Investor Presentation • Meet Management • June 2013
CRPC: castration-resistant prostate cancer
1: GLOBOCAN, World Health Organization
Riociguat – Addressing Unmet Medical
Need in Pulmonary Hypertension
1) Clinical
 Phase III in PAH (PATENT-1) successfully completed
 Phase III in CTEPH (CTEPH) successfully completed showing Riociguat
to be the first ever drug demonstrating clinical efficacy in a placebocontrolled trial
2) Regulatory
 Submitted for PAH and CTEPH in the US - priority review granted (April
2013)
 Submitted for PAH and CTEPH in Europe (Feb 2013)
Peak sales potential > €500m
6MWDT: 6 Minutes walking distance test , CTEPH: chronic thromboembolic pulmonary hypertension,
PAH: pulmonary arterial hypertension, sGC soluble guanylate cyclase
Page 59 • Bayer Investor Presentation • Meet Management • June 2013
Riociguat – Demonstrated Efficacy in PAH
and CTEPH
Phase III in PAH (PATENT-1)
Phase III in CTEPH (CHEST-1)
● Primary efficacy endpoint met – 6MWD
improved by 36m from baseline after 12
weeks compared with placebo (p<0.0001)
● Primary efficacy endpoint met – 6MWD
improved by 46m from baseline after 16
weeks compared with placebo (p<0.0001)
● Statistical significant effect demonstrated
across sec. endpoints1 in both treatmentnaïve and pre-treated patients
● Significant improvement observed in
relevant sec. endpoints2
● Riociguat was generally well tolerated
with a good safety profile
● Riociguat was generally well tolerated
with a good safety profile
● First interim analysis of the long-term
extension study (CHEST-2) showed
further increase in 6MWD in former
Riociguat patients and in former placebo
patients compared to CHEST-1 baseline
● A first analysis of the long-term extension
study (PATENT-2) showed that efficacy
benefits were improved and sustained
and that Riociguat was well tolerated with
a good long-term safety profile
Sec. endpoints for 1) and 2): Pulmonary vascular resistance; N-terminal pro brain natriuretic peptide; World health organization functional class;
for 1) additionally: Time to clinical worsening; Borg dyspnea score
CHEST-1 enrolled patients with CTEPH either inoperable or with persistent or recurrent pulmonary hypertension after surgery
CTEPH: chronic thromboembolic pulmonary hypertension,
Page 60 • Bayer Investor Presentation • Meet Management • June 2013
PAH: pulmonary arterial hypertension,
6MWD: Six minute walking distance
Forms and Epidemiology of Pulmonary
Hypertension
 Pulmonary hypertension (PH) encompasses multiple disease subtypes but approved
treatments are only indicated for pulmonary arterial hypertension (PAH)
 ~700,000 patients diagnosed1 with diseases related to / including PH. Thereof ~300,000
patients potentially eligible for PH treatment
~30,000
PAH
~20,000
CTEPH
~410,0002
PH owing to lung disease
~240,000
PH-LVD
1Diagnoses
Page 61 • Bayer Investor Presentation • Meet Management • June 2013
estimated in 2009 in US, EU5, J;
2Thereof ~ <20% could be treated for PH
CTEPH: Chronic thromboembolic pulmonary hypertension
LVD: left ventricular disease
Pharma Product Portfolio
Page 62 • Bayer Investor Presentation • Meet Management • June 2013
Top 10 Pharma Product Performance
in 2012
FY 2012 sales in € million (∆% yoy Fx-adj.)
Betaseron
Multiple Sclerosis
1,216
+4%
Kogenate
Hemophilia A
1,182
+5%
YAZ-family
Contraception
Nexavar
Cancer
Mirena
Contraception
677
+9%
Adalat
Hypertension
670
-2%
Avelox
Antiinfective
486
-5%
Aspirin C.
MI prevention
476
+12%
Glucobay
Diabetes
Xarelto
Anticoagulation
1,045
792
408
322
-5%
+4%
+4%
+266%
MI: Myocardial infarction
Page 63 • Bayer Investor Presentation • Meet Management • June 2013
Leader in Women’s HealthCare
Sales ∆% y-o-y, () Fx adj.
Yaz family
-2 (-5)
Mirena
+17 (+9)
Diane
+7 (+5)
Women’s Healthcare 2012
0 (-1)
Microgynon
-31 (-31)
Valette
Meliane
-8 (-8)
Angeliq
+6 (+4)
Qlaira
+37 (+35)
Other products
+13 (+10)
€3,154m
+5% (+2%)
Page 64 • Bayer Investor Presentation • Meet Management • June 2013
YAZ / Yasmin Product Family – A Changing
Competitive Environment
Sales in € million; ∆% Fx adj.
 YAZ / Yasmin fully genericised in the
US
1,111
1,070
846
891
265
2010
US
-5%
1,045
855
179
190
2011
2012
Rest of the world
Page 65 • Bayer Investor Presentation • Meet Management • June 2013
 Ongoing genericization in Europe
expected to impact sales going
forward
 Growth in Asia and Latin America only
partly compensating for the decline
 Life-cycle management opportunities
with limited commercial potential
 2013 sales target: mid-to-high singledigit % decline
Mirena – The Leading Hormonal LongActing Contraceptive
Sales in € million; ∆% Fx adj.
+9%
677
581
539
 Life-cycle opportunities:
292
268
254
 Intrauterine device, containing
levonorgestrel, for reversible long-term
contraception
 Small low-dose long-acting (up to 3
years) device:
 Jaydess: successful conclusion
of EU registration
 Skyla: US-launch in Feb. 2013
385
313
285
 Phase III underway for LCS 16 - a
long-acting (up to 5 years), low-dose,
small contraception device
 2013 sales target: high-single to lowdouble-digit % increase
2010
US
2011
2012
Rest of the world
Page 66 • Bayer Investor Presentation • Meet Management • June 2013
Hemophilia Franchise –
Stable Growth
Sales in € million; ∆% Fx adj.
+5%
1,004
 Global # 2 in hemophilia A treatment
1,182
1,075
 Competitive development program in
hemophilia underway:
 Phase III with long-acting Factor
VIII (BAY 94-9027)
785
705
850
 Phase III with product from
plasma-free process (BAY 818973)
 2013 sales target: low-single-digit %
increase
290
332
2011
2012
299
2010
US
Rest of the world
Page 67 • Bayer Investor Presentation • Meet Management • June 2013
Betaseron – Long-term Experience in
Multiple Sclerosis Treatment
Sales in € million; ∆% Fx adj.
 First interferon launched in multiple
sclerosis, introduced in 1993
+4%
1,206
1,216
1,117
638
733
670
 Demonstrating excellent efficacy and
tolerability
 21-year long-term follow-up study
demonstrated significant survival
advantage with Betaseron treatment
 2013 sales target: high-single-digit %
decline
473
2010
US
578
447
2011
 Franchise expected to erode further
due to increasing competition,
including new oral MS treatments
2012
Rest of the world
Page 68 • Bayer Investor Presentation • Meet Management • June 2013
Nexavar –
Our Cornerstone in Oncology
Sales in € million; ∆% Fx adj.
+4%
792
725
705
551
531
 Approved for kidney cancer (RCC)
and for liver cancer (HCC)
 Only approved drug with overall
survival benefit in HCC
588
 Positive phase III data in radioactive
iodine refractory differentiated thyroid
cancer (DECISION-trial)
 Phase III trials in:
 Breast cancer
 RCC (adjuvant)
 HCC (adjuvant)
174
204
2011
2012
174
2010
US
Rest of the world
Page 69 • Bayer Investor Presentation • Meet Management • June 2013
 2013 sales target: mid-single-digit %
increase
Nexavar –
Positive Phase III Results in Thyroid Cancer
Median progression-free survival
Primary endpoint met
HR: 0.587
CI 0.4540.758
p<0.0001
10.8 months
 High unmet medical need in patients
with locally advanced, metastatic
RAI-refractory DTC
 Met primary endpoint of improving
PFS vs. placebo
 Response rate (all PR) in the
sorafenib vs. placebo arms was
12.2% and 0.5% (p<0.0001)
5.8 months
 Safety and tolerability generally
consistent with known profile of
Nexavar
Placebo
Sorafenib
Filing for RAI-refractory differentiated thyroid cancer planned for mid 2013
Page 70 • Bayer Investor Presentation • Meet Management • June 2013
RAI: radioactive iodine; DTC: differentiated thyroid cancer
HR: hazard ratio, CI: confidence interval; PR: partial response
Aspirin –
More Than A Century of Growth
Sales in € million; ∆% Fx adj.
 One of the world’s most recognized
brands
+6%
970
875
776
476
358
404
 Available as OTC and Rx Aspirin
 Bayer’s #1 product in Emerging
Markets
 Aspirin grew 17% in 2012 in the
Emerging Markets
 Aspirin grew 39% in 2012 in
China
418
2010
Rx-Aspirin
471
494
2011
2012
OTC-Aspirin
Page 71 • Bayer Investor Presentation • Meet Management • June 2013
Global Leader in Consumer
Health
Page 72 • Bayer Investor Presentation • Meet Management • June 2013
Consumer Care –
Best-Selling Products in 2012
FY 2012 sales in € million (∆% yoy Fx-adj.)
OTC portfolio includes 10 brand families with sales >€100m
970* +6%
323
+14%
269
250
+5%
+8%
197# +17%
196
+3%
146
130
122
101
+4%
+8%
+5%
+8%
= Rx Sales
Page 73 • Bayer Investor Presentation • Meet Management • June 2013
*Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx)
#Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus.
Consumer Care –
Gained Share in 2012
Sales in € million; ∆% Fx & portfolio adj.
+6%
3,371
3,020
3,853
3,534
3,080
Highlights
 Global #2 with a portfolio of some of the
world’s most recognized brands
 Track record of performance
 Continued market share gains
2008
2009
2010
2011
2012
Page 74 • Bayer Investor Presentation • Meet Management • June 2013
Animal Health –
A Top Player in an Attractive Market
Sales in € million; ∆% Fx & portfolio adj.
+4%
1,120
963
1,303
1,186
977
Highlights
 Global #5 in a growing market
 #3 in companion animal products (CAP)
 #6 in food animal products (FAP)
 Leading parasiticide-portfolio
 Broadened portfolio and marketing reach
by acquisition of Bomac and TEVA Animal
Health
2008
2009
2010
2011
2012
Page 75 • Bayer Investor Presentation • Meet Management • June 2013
Radiology & Interventional – Combining
Medrad and Diagnostic Imaging
Sales in € million; ∆% Fx & portfolio adj.
Highlights
+1%
1,474
1,323
Medrad:
1,606
1,498
 Clear #1
 Active in fluid injection systems for
contrast media and endovascular devices
1,363
 Business strengthened around strategic
core through adjacent acquisitions of
Possis (thrombectomy) and Pathway
(mechanical atherectomy)
Diagnostic Imaging:
 Market leader in contrast media
 Synergy creation – similar
centers/physicians
2008
2009
2010
2011
2012
* pro forma sales
Page 76 • Bayer Investor Presentation • Meet Management • June 2013
Diabetes Care –
Global Player in Blood Glucose Meters
Sales in € million; ∆% Fx & portfolio adj.
+4%
956
1,000
993
1,002
1,047
Highlights
 Global #4 in blood glucose meters
 Latest innovation products include
CONTOUR™ USB meter with
 Plug & play technology for instant access to
patterns and trends
 Patients can share data with their healthcare
professional
2008
2009
2010
2011
2012
Page 77 • Bayer Investor Presentation • Meet Management • June 2013
2012
CAGR 2015e
HealthCare: Building Growth
Momentum – Improving Margins
Page 78 • Bayer Investor Presentation • Meet Management • June 2013
HealthCare –
Building Growth Momentum, Improving Margins
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
Priority
2012
Target
2013*
Aspiration
2015
mid-single-digit CAGR ~6%
% to ~€19bn towards €22bn
 HealthCare: Accelerate sales growth
€18.6bn
 Pharma: Successfully commercialize new
products and realize emerging markets
(EM) opportunity
 New product sales¹
 EM growth
CAGR ~7%
€10.8bn mid-single-digit
% to ~€11bn towards €13bn
 Consumer Health: Aspire to become #1
OTC company
 HealthCare: Improve margins*
 Pharma
 Consumer Health
Page 79 • Bayer Investor Presentation • Meet Management • June 2013
€368m
7.3%
€7.8bn
27.5%
29.9%
24.2%
~€1bn
>€2.5bn
high-single
high-single
digit %
digit %
mid-single-digit
~€9bn
% to ~€8bn
slightly up
towards 29%
slightly up
≥31%
at level
~25%
¹ Xarelto, Eylea, Stivarga, Xofigo and Riociguat; subject to regulatory approval
*Assuming Fx rate of $1.29 per €
Outlook depends on specific planning assumptions as detailed in the Annual Report
Life-Cycle and Pipeline Opportunities
Require Additional R&D Investments
Sales and R&D in € billion
10.8
9.9
 Target range for Pharma R&D to sales ratio
of 15-17%
 Newly launched products will increase
maintenance costs (e.g. medical, regulatory,
safety) included in R&D
2.0
16%
14%
 New Pharma products with significant lifecycle opportunities e.g.:
 Xarelto – Prevention of major adverse
cardiac events (COMPASS)
 Stivarga – Adjuvant mCRC; 2nd line HCC
1.6
1.6
2011
Sales
R&D expenses
 Xofigo – Earlier settings of prostate
cancer; other cancers
2012
R&D to sales ratio
mCRC: metastatic colorectal cancer; HCC: hepatocellular carcinoma
Page 80 • Bayer Investor Presentation • Meet Management • June 2013
Expected Major Pipeline Newsflow 2013
Pipeline
Project
Newsflow
Timeframe
Eylea
Phase III study in mCNV (MYRROR)
Data expected 1H 2013
Phase III study in DME (VIVID-DME)
Data expected 2H 2013
Xofigo
Initiation of additional clinical studies
2013e
Regulatory decision mCRPC EU
End 2013e / early 2014e
Update on potential next steps in the development program
1H 2013e
Regulatory decision US
2H 2013e (PDUFA date in October)
Riociguat
Nexavar

Phase III breast cancer (RESILIENCE)
Data expected Q1 2014
Filing in thyroid cancer
2013e
Stivarga
CHMP opinion mCRC EU
1H 2013e
Filing mGIST EU
Planned after approval in mCRC in EU
BAY 94-9027
Phase III study in hemophilia A
Data expected early 2014
Page 81 • Bayer Investor Presentation • Meet Management • June 2013
Bayer’s OTC Business
Investor Handout – Meet Management
June 2013 – New York
Bayer’s Consumer Care Business

#2 player in large and growing global OTC market

2012 revenue: €3.9bn, thereof OTC €3.5bn

Strong portfolio of well-known consumer brands
− 10 brands with > €100m in revenue each

Proven track record of outperforming OTC market
− 5-year CAGR of ~6% versus market CAGR of 3-4%

Well-defined strategies to achieve #1 position in global OTC market
−
−
−
−
Maximize brand potential via geographic expansion
Focus on new product innovation
Expand footprint in emerging markets
Seek strategic acquisitions and alliances
Page 83 • Bayer Investor Presentation • Meet Management • June 2013
Leading Positions in Key OTC
Categories
Position by Category 2012*
Bayer OTC Sales by Category 2012
8%
4%
12%
30%
€3.5bn
22%
24%
Cardio
#1
Vitamins, Minerals
& Supplements
#2
Analgesics
#2
Dermatologicals
#2
Gastrointestinals
#6
Cold, Allergy, Sinus & Flu
>#10
*Source: IMS; Rankings based on branded players
Page 84 • Bayer Investor Presentation • Meet Management • June 2013
Bayer is #2 Player in a Highly Fragmented
OTC Market
OTC Market 2012 by Player
3.7%

OTC market is very fragmented and
grew ~4% versus 2011

Top 10 players have ~27% share of
the OTC market

Bayer is ranked #2 with 3.7% share
of the OTC market behind J&J with
4.0% share
€99.5bn
J&J
Bayer
Boehringer I.
Novartis Cons
Reckitt Ben.
Sanofi Cons
Taisho
Pfizer
Takeda
Page 85 • Bayer Investor Presentation • Meet Management • June 2013
GSK
Others
Source: IMS
Why are OTCs an Attractive
Business?
Page 86 • Bayer Investor Presentation • Meet Management • June 2013
Large and Growing OTC Market
OTC Market Growth Development
In € bn
~4%
CAGR
+4%
92
+4%
96
86
+3%
89
+4%
100
2008
2009
2010
2011
2012
Page 87 • Bayer Investor Presentation • Meet Management • June 2013

OTC market characterized by
steady, predictable growth – even
during economic downturns

OTC share of healthcare
spending increased from 10.6%
in 2007 to 11.3% in 2012*
>150
2022e
Source: Bayer Internal estimates
*Source: IMS OTC Global Analysis
Favorable Trends Drive Continued OTC
Market Growth
Aging & more
educated
population
Increasing
global
self-care
trends
Expanding
OTC access
via new
geographies,
channels
Government
desire to
lower
healthcare
costs
Traditional OTC Market
 Acute treatment
Future OTC Market
+
 Symptomatic treatment
 Chronic treatment
Rx to OTC
Switches

Preventive treatment

Asymptomatic with selftesting / pre-diagnosis

Wellness
Page 88 • Bayer Investor Presentation • Meet Management • June 2013
Good Growth Across All OTC
Categories
Global OTC Market 2012
OTC Growth 2012
Gastrointestinals
13%
42%
43%
20%
29%*
+5%
Analgesics#
+4%
14%
€99.5bn
36%
13%
32%
10%
5%
4%
20%
Dermatology
Cold, Allergy,
Sinus & Flu
Vitamins, Minerals, Supplements
+6%
+2%
+4%
*Other
Page 89 • Bayer Investor Presentation • Meet Management • June 2013
#Analgesics
includes Cardio
Source: IMS
OTC Model Based on Brand Building versus
Upfront Development Costs
OTC model based on brand asset building
 Short investment cycle & long (but relatively smaller) revenue cycle
Ongoing investments in
brand and innovation provides
attractive, long-term returns
Usually profitable
within 1-2 years
1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Years
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Rx model reliant on blockbuster success
 Long investment cycle & short (but attractive) revenue cycle
Realization
Increased
pricing
pressure
More me-too
products
Discovery &
Development
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Years
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Page 90 • Bayer Investor Presentation • Meet Management • June 2013
Strong Consumer Brands Build Equity for
Decades
Brands
Years Old
2012 Sales €m
3-Year CAGR
113
970*
7%
81
197#
12%
78
101
1%
69
196
5%
68
269
12%
40
250
9%
19
323
12%
Page 91 • Bayer Investor Presentation • Meet Management • June 2013
*Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx)
#Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus
Increasing Transaction Multiples of OTC
Businesses
Year
Seller
Buyer
Sales
Multiple
2005
Roche OTC
Bayer
2.4 x
2006
Pfizer (Zantac US OTC Rights)
Boehringer Ingelheim
4.7 x
2006
Pfizer Consumer Healthcare
Johnson & Johnson
4.3 x
2009
Chattem
Sanofi-Aventis
4.9 x
2010
Paras Pharmaceuticals
Reckitt Benckiser
8.2 x
2012
Schiff
Reckitt Benckiser
5.4 x
Page 92 • Bayer Investor Presentation • Meet Management • June 2013
Source: Press Releases, Company Filings
Aspire to Become the #1 –
Path to OTC Leadership
Page 93 • Bayer Investor Presentation • Meet Management • June 2013
Evolution of Bayer Consumer Care’s OTC
Business
1899
1984
1996
2005
2011
ASPIRIN introduced
as an over-the-counter
(OTC) medicine
Self-Medication and
Consumer Products
created as independent
business group
Sale of suncare, cosmetics
and sweetener businesses
to Sara Lee
Acquisition of Roche
Consumer Health
New Bayer Advanced
Aspirin for faster pain
relief launched in US
1978
1994
1999
2008
2013
Bayer purchases
Miles Laboratories
Consumer Care business
group created by the
acquisition of North American
OTC business of Sterling.
Acquisition of the
“Bayer Cross” Trademark
in USA
Aspirin trademark
centenary-worldwide
sales > €500m
Acquisition of OTC brand
portfolio from
Sagmel (CEE) and
Topsun (China)
Expect Aspirin to hit
€1bn sales
Acquisition of
Steigerwald
Page 94 • Bayer Investor Presentation • Meet Management • June 2013
Strategy for Growth
OTC Sales Target 2015*
Growth Strategy
 Maximize brand potential
Organic growth
>4% CAGR
>€4.0bn

Global expansion of key brands
 Exploit our innovation pipeline
€3.5bn

Double proportion of new products‘ sales
until 2015
 Grow in emerging markets

Increase commercial power
 Bolt-on acquisitions to strengthen
portfolio & regional set-up
2012
2015e
Page 95 • Bayer Investor Presentation • Meet Management • June 2013
*assuming €/$ of 1.29
Dynamic Portfolio of Well-Known Brands
Vitamins, Minerals,
Supplements
Analgesics
Dermatologicals
Cold, Allergy, Sinus, Flu
Gastrointestinals
Cardio Prevention
Page 96 • Bayer Investor Presentation • Meet Management • June 2013
Strength of OTC Brands to Drive Organic
Growth
FY 2012 sales in € million (∆% yoy Fx-adj.)
OTC portfolio includes 10 brand families with sales >€100m
970* +6%
323
+14%
269
250
+5%
+8%
197# +17%
196
+3%
146
130
122
101
+4%
+8%
+5%
+8%
= Rx Sales
Page 97 • Bayer Investor Presentation • Meet Management • June 2013
*Total Aspirin includes Aspirin Complex and Aspirin Cardio (Rx)
#Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus
Maximizing Brand Potential
Through Global Expansion
Brand
Sales by Major Region 2012
Expansion Plans
~80% in North America
Analgesic
~75% in Europe
Wound-healing
~75% in Europe & LatAm
Anti-fungal
Vitamins & minerals
~50% in Europe
~55% in Asia Pacific
Pregnancy Supplement
Page 98 • Bayer Investor Presentation • Meet Management • June 2013
Consumer Insights Drive Brand Innovation
and Growth
Sales in € million
One-A-Day Innovation History
167
176
142
112
109
58
Bayer Innovation includes:

New claims

Indications

Delivery forms

Line extensions

New packaging

New DTC campaigns

Rx-to-OTC Switch
2002 2004 2006 2008 2010 2012
Page 99 • Bayer Investor Presentation • Meet Management • June 2013
DTC: Direct-to-consumer
Robust Innovation Pipeline
New Product Examples
Share of Sales from New Products*

Complete 6-7 week fungal nail
infection treatment
~16%


5%
2011
Redoxitos
Recommended children’s vitamin C
daily dose for strengthening immunity

2010
One A Day Vita Craves
Complete adult multivitamin in
great tasting gummy format
8%
4%
Canesten Nail Set
2012
Bepanthen Anti-Stretch Mark
Moisturizing lotion keeping pregnant
women’s skin soft and elastic
2015e
*sales of new products launched during a 4-year window
Page 100 • Bayer Investor Presentation • Meet Management • June 2013
We Need to be Where the Market is
Growing
Bayer OTC sales and market growth indexed
16%
45%

China, Russia and Brazil
accounted for only 11% of Bayer
2012 OTC sales

78% of total OTC market growth in
2012 driven by China, Russia and
Brazil

Huge opportunity for Bayer OTC to
develop more in growth markets
6%
78%
44%
11%
Bayer OTC sales
2012 by region
China, Russia & Brazil
OTC Mkt 2012
growth share by region*
US, Germany, France & Italy
Page 101 • Bayer Investor Presentation • Meet Management • June 2013
Rest of the world
* Source: IMS
Emerging Market Growth Strategies
(2013 – 2015)
Country
Market Characteristics
 #2 global OTC market
Russia
 Expand sales force from 30 cities to >130
cities, covering 75% of OTC market
 €30bn in size by 2015e
 Extend geographic footprint by launching
global brands in China
 #6 global OTC market
 Fastest growing market
in LATAM
 ~50% of LATAM market
 Expand sales force from 7,000 to 12,000
retail outlets, covering 73% of OTC market
 #5 global OTC market
 Extend portfolio into attractive categories
China
Brazil
Plans
 Accelerate innovation through consumer
insights and portfolio extension
 Retail OTC is the largest  Leverage leadership position in pharmacy
chains to drive growth at point of sales
healthcare segment
Page 102 • Bayer Investor Presentation • Meet Management • June 2013
Strategic Acquisitions –
Steigerwald
 Excellent strategic bolt-on entry into fast growing
herbals market, further strengthens Bayer’s
gastrointestinal position (currently #6 globally)
 Excellent expansion potential into emerging markets like
Russia and other Eastern European markets
 Steigerwald generated net sales of €61.3m in 2012
(~90% in Germany)
Iberogast®
Laif®
 For the treatment of
functional dyspepsia &
irritable bowel syndrome
 #8 OTC product in Germany
 St John’s wort-based
medicine for treatment
of depression
 Strong position in its indication
 ~69% of 2012 sales
 ~20% of 2012 sales
Page 103 • Bayer Investor Presentation • Meet Management • June 2013
Bayer is Well-Positioned for Growth –
Aspire to #1 Global Leadership
OTC Market
Attractive
Bayer Has
Strong #2
Position
Plans for
Continued
Future Growth
 Trends favor continued growth
 OTC market model based on long-term brand building
 OTC businesses becoming more valuable over time
 Leader in key categories
 Multiple strong brands
 Track record of outperforming market growth
 Globalize established brands
 Launch strong innovation pipeline
 Focus on emerging markets where most of growth will come
 Strategic acquisitions and alliances
Page 104 • Bayer Investor Presentation • Meet Management • June 2013
Bayer CropScience
Investor Handout – Meet Management
June 2013 – New York
CropScience –
A Leader in Chemical Crop Protection
Herbicides
Market position:
€2,356m
€1,514m Insecticides
4
Market position:
18%
1
28%
Env. Science
Market position:
€680m
€1,974m Fungicides
Market position:
1
24%
8%
Seeds
Market position:
€962m
11%
7
3
11%
€897m SeedGrowth
Market position:
1
Sales 2012: €8,383m
Page 106 • Bayer Investor Presentation • Meet Management • June 2013
Market positions based on company reportings and Cropnosis estimates
Fruits, Vegetables and Cereals –
A Major Part of Our Portfolio
Sugar Crops
Rice
Other
5%
6%
Cotton
26%
Fruits & Vegetables
7%
9%
Oilseeds
Cereals
9%
Soy
22%
13%
Corn
CropScience Sales 2012*
* by major crop groups excluding industrial business and non-agricultural solutions
Page 107 • Bayer Investor Presentation • Meet Management • June 2013
Leading the Way in Integrated Crop
Solutions
Herbicides
Fungicides
Insecticides
SeedGrowth
Chemical
Crop
Protection




Biological
Crop
Protection
 Microorganisms
 Microbial
extracts
Seeds
 Canola, cotton,
rice, vegetables,
soy, wheat
 Weed, pest &
disease control
 Stress
tolerance
Better harvest
with improved:
 Yield
 Quality
 Conventional
seeds
 GMO seeds
 Traits
 Processability
 Sustainability
Integrated Crop Solutions
Page 108 • Bayer Investor Presentation • Meet Management • June 2013
GMO: Genetically modified organism
Excellent Performance in
Positive Environment
Page 109 • Bayer Investor Presentation • Meet Management • June 2013
Full Year 2012 –
CropScience
In € million, ∆% yoy, () = Fx & portf. adjusted
2012 Sales
Environmental
Science
+9% (+5%)
Earnings
Crop Protection
+16% (+13%)
680
962
Adj.
EBITDA*
6,741
Adj.
EBIT*
2,026 +22%
1,654
1,543 +32%
1,168
Seeds
+17% (+14%)
CropScience €8,383m; +16% (+12%)
Price
+1%
Volume
+12%
Fx
+4%
Portfolio
-1%
FY‘11
FY‘12
FY‘11
FY‘12
*before special items
Page 110 • Bayer Investor Presentation • Meet Management • June 2013
Full Year 2012 –
All Segments Contributing to Growth
Sales in € million; ∆% y-o-y Fx & portfolio adj.
2,356 Growth in all regions, especially in the
+10% US (new corn herbicides) and Brazil
Herbicides
1,974
+13%
Fungicides
1,514
+15%
Insecticides
Double-digit growth in all broad-acre
crops; slight decline in vegetable seeds
962
+14%
Seeds
Env.Science
FY 2011
Growth in all regions; phase-out of WHO
Class I products completed
Strong business expansion; high
demand for innovative Poncho/Votivo
897
+17%
SeedGrowth
Double-digit growth in several key
markets (e.g with Fox in Brazil)
Products both for professional users
and consumers posting gains
680
+5%
Nominal growth FY 2012
Page 111 • Bayer Investor Presentation • Meet Management • June 2013
Seeds – Double-Digit Growth in All Our
Broad Acre Crops in 2012
Sales in € million; ∆% y-o-y, () Fx & portfolio adj.
2012 Highlights
+14%
962
Other
Soybean (+83%)
Rice (+23%)
820
47
40
199
Cotton (+10%)
311
Oilseeds (+33%)
299
304
Vegetables (-2%)
2011
2012
179
227
Page 112 • Bayer Investor Presentation • Meet Management • June 2013
 High demand for InVigor in Canada;
launch of conventional oilseed rape
in Europe
 Expansion of cotton seed business
driven by US and Brazil
 Growing rice seed business in Asia
(esp. India)
 Difficult market environment for
vegetable seeds
 Successful launch of Bayer soybean
seed in the US
 Build-up of global wheat seed business
continued with new research
cooperations
Full Year 2012 –
Growth in All Regions
Sales in € million, ∆% yoy Fx adjusted
Emerging Economies
CropScience Sales in FY 2012
USA
+19%
25%
18%
+15%
Emerging
Economies¹
+12%
43%
~1,800
+7%
+16%
25%
Western
Europe +5%
14%
~900
+7%
~600
Others²
+13%
Emerging
Asia³
CropScience €8,383m; +16% (+12%)
Latin
America
Eastern
Europe
~300
Africa &
Middle East
¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, ² Others = Japan, Australia, New Zealand, Canada
New Zealand, Africa and Middle East incl. Turkey, Eastern Europe
³ Emerging Asia = Asia without Japan, Australia, New Zealand
Page 113 • Bayer Investor Presentation • Meet Management • June 2013
From
to
€
Translating R&D Effectively
into Sales
Page 114 • Bayer Investor Presentation • Meet Management • June 2013
Executing Our Strategic Roadmap
Enhance
Crop Protection
Strengthen
Lead the Way
Customer Centricity in Innovation
Expand
Seeds Business
 Improving portfolio
through focused
and integrated
crop solutions
 Driving commercial
excellence in
marketing and sales
 Striving for first- and
best-in-class
solutions
 Connecting partners
in the value chain
through integrated
Go-to-Market
practices
 Exploiting expertise
in seeds, breeding,
and chemical and
biological crop
protection
 Further strengthening
position in
vegetables, rice,
oilseed rape
and cotton
 Increasing
flexibility and
efficiency
 Extending portfolio
by building up
business in soybean
and wheat
Page 115 • Bayer Investor Presentation • Meet Management • June 2013
Translate R&D Effectively into
New Product Sales
Sales from new Crop Protection
products launched since 2006 in € bn
∆% y-o-y, () Fx adj.
~1.9
2012 Highlights
 Xpro (+61%) - New cereal fungicide with
yield-boosting effect
~1.4
1.1
+60%
 Belt (+54%) - Broad-spectrum
insecticide with fast and long-lasting
action
0.7
0.3
 Launch of Luna fungicide in the US
0.02
2007
2009
 Adengo herbicide family (+85%) Excellent weed control in corn and
cereals, also in case of glyphosate
resistance
2011
2012 2013e 2015e
Page 116 • Bayer Investor Presentation • Meet Management • June 2013
 First launch of new SeedGrowth family
EverGol/Emesto in Canada
Xpro – New Cereal Fungicide
with Yield-Boosting Effect
 Pyrazole fungicide from a new generation of SDHI* for foliar use in cereals
 Combined formulation of Bixafen and Prothioconazole leading to superior
"all-in-one" cereal fungicide
 Excellent control of key cereal diseases including strobilurin-resistant Septoria
 Boosting yield through long-lasting disease control and positive impact on
plant physiology
 Global peak sales potential of more than €300m
Page 117 • Bayer Investor Presentation • Meet Management • June 2013
* SDHI: Succinate dehydrogenase inhibitor
Luna – Outstanding Fungicide for Managing
Problematic Crop Diseases
 New SDHI* fungicide for use in foliar application and seed treatment on more
than 70 horticultural and industrial crops
 Control for a broad range of problematic diseases including Alternaria blight,
scab, powdery mildew and white mold
 Benefits for the food chain through better storability and longer shelf-life of
harvested produce
 Available since 2012 planting season in several key markets
 Global peak sales potential of more than €250m
Page 118 • Bayer Investor Presentation • Meet Management • June 2013
* SDHI: Succinate dehydrogenase inhibitor
LibertyLink – A Sustainable Alternative to
Glyphosate to Fight Weed Resistance
 Weed resistance to glyphosate increasingly impacting crop production
 Our LibertyLink is currently the only non-selective herbicide solution to glyphosate
resistant weeds
 Construction of a new world-scale glufosinate-ammonium plant in the US planned to
contribute to more than doubling global production capacity
 We are committed to develop new and more sustainable weed management solutions
 Innovation with new mode of action, HPPD herbicide tolerance, in soy and cotton
 MGI triple stack herbicide-tolerance soybean trait submitted for approval
 Highly effective pre-emergent and selective herbicide portfolio launched
Bayer CropScience
sustains the "Respect
the Rotation" initiative
to overcome weed
management challenges
Page 119 • Bayer Investor Presentation • Meet Management • June 2013
HPPD: Hydroxyphenyl-pyruvate dioxygenase
MGI: Mesotrione, Glufosinate-ammonium and Isoxaflutole
Realising Further Growth Opportunities
in Biologics
 Biologics are bio-based products, either consisting of naturally-occurring living
organisms or containing materials derived from plants, bacteria, fungi, yeasts or viruses
 The market potential for Biologics is expected to triple from $1.2bn in 2010 to around
$4bn in 2020
 AgraQuest acquired in Q3 2012 for €375m including milestone payments.
Leading global provider of innovative biological pest management solutions based
on natural microorganisms
 German company Prophyta acquired in Q1 2013, provides customers well-established
products primarily based on biological control agents, e.g. nematicide BioAct.
 Acquisitions strengthen strategically important fruit and vegetables business
 We aim to become the world leader in integrated crop solutions
Page 120 • Bayer Investor Presentation • Meet Management • June 2013
Customer Centricity Along the Entire
Value Chain
Food retailers
Traders
Advisors
Growers
Food processors
Our offers
Retailers
Bayer CropScience
Distributors /
seed companies
Providing Seed-to-Shelf Solutions
Consumers
 240 food chain partnerships covering most of the main fruit & vegetable crops
 Premium seeds and effective crop protection products to maximize yield
 Consistent and high harvest quality for efficient food processing
 Meeting highest food safety standards
 Better product quality for the consumer
Page 121 • Bayer Investor Presentation • Meet Management • June 2013
Best-Practice Examples of our New
Go-To-Market Approach
Approach
Achievement
Food chain partnerships in grapes in Brazil,
Chile, Italy and India
 Market share in grapes in Brazil +5%
 ~ 60% market share in table grapes in
Chile (largest exporter worldwide)
"On demand" seed treatment system with a
global network of 10 SeedGrowth Centers
 2012 SeedGrowth sales* +17%
 Further roll-out of SeedGrowth franchise
in Asia Pacific (sales in China* +30%)
Combine innovative technology of Movento
insecticide with additional service offerings
 2012 Movento sales* +49%
BayDir service in Germany offers tailored
and immediate information for farmers
through Internet and mobile phone apps
 Further strengthened our position in the
German market
Page 122 • Bayer Investor Presentation • Meet Management • June 2013
* Sales ∆% y-o-y Fx adj.
Pipeline Peak Sales Potential  €4bn
from Products Launched 2011 - 2016*
Crop Protection (excl. Biologics)
Canola
Soybean
Cotton
Rice
Biologics
Herbicide
Seeds & Vegetables
Triafamone
Wheat
Fungi- / Bactericide
Biologics
Insecticide
Fungi- / Bactericide
Serenade AEW
Biologics
Insecticide
Verango / Velum
LibertyLink
+ R. Ready
Hybrid
Canola
Insecticide
Biologics
Fungicide
SeedGrowth**
Fungicide
Serenade Optimum
Herbicide
Fungicide
SeedGrowth** / Fung.
B. Subtilis
SeedGrowth**
GlyTol
Cotton
Seed Varieties
~80 launches in
vegetables & broad
acre crops
2011
Insecticide
Dual Herb.
Tol. + Novel
Ins. Res.
Cotton
Fungicide
Sivanto
Biologics
TwinLink +
GlyTol
Cotton
Bayer
Wheat
Seed
Improved
Canola Oil
Profile
Bayer
Oilseed
Rape Seed
Bayer
Oilseed
Mustard
Hybrids
Canola
Yield
Increase
GlyTol +
HPPD
Tolerant
Soybeans
Insect +
Disease Res.
Hybrid Rice
Bayer
Soybean
Seed
Roundup
Ready
Hybrid
Canola
Insect
Resistant
Hybrid Rice
Disease Res.
+ Submerge.
Tol. Hybrid
Rice
Disease Res.
+ Salinity Tol.
Hybrid Rice
Seed Varieties
Seed Varieties
Seed Varieties
Seed Varieties
~ 100 launches in
vegetables & broad
acre crops
~110 launches in
vegetables & broad
acre crops
Numerous launches in
vegetables & broad
acre crops
Numerous launches in
vegetables & broad
acre crops
2012
2013
Page 123 • Bayer Investor Presentation • Meet Management • June 2013
2014
Seed Varieties
Numerous launches in
vegetables & broad
acre crops
2015
2016
*Estimated and subject to regulatory approval
**Formerly called Seed Treatment
Sivanto – Innovative and User-friendly
Insecticide against sucking pests
 Active ingredient: flupyradifurone (novel insecticide class butenolides)
 Control of sucking pests such as aphids, hoppers and whiteflies
 Intended for use in fruits, vegetables, and broad acre crops
 Favorable safety profile
 Launch planned 2014 / 2015 *
Page 124 • Bayer Investor Presentation • Meet Management • June 2013
* first registrations for foliar application; SeedGrowth use
planned to follow subsequently
Restriction of Neonicotinoids Use in the EU Implications
 The European Commission has adopted a proposal to restrict the use of certain
neonicotinoids (including clothianidin and imidacloprid) in summer cereals and beeattractive crops, including corn, oilseed rape and sunflower
 Neonicotinoid-based products are safe for bees, when used according to label
instructions; registered in > 100 countries world-wide in a broad range of crops
 Affected business of clothianidin and imidacloprid ~1% of total CropScience sales, gross
 Net sales impact significantly less, as alternative products partly compensate
 Restrictions will apply from Sept 30 (use of treated seeds until Dec 1, 2013) the latest
 Restrictions expected to result in crop yield losses and loss of competitiveness for
European agriculture
 U.S., Canadian and Brazilian regulatory agencies recognize that there are numerous
factors affecting honey bee health
 Bee health more complex: diseases, parasitic mites, habitat loss, nutritional deficiencies
and hive management practices
Page 125 • Bayer Investor Presentation • Meet Management • June 2013
Increasing the R&D Share for Seeds
In € million
R&D Split
Pipeline Value by Segment
Crop Protection/Environmental Science
Seeds
722
70%
723
782
65%
63%
Pipeline Peak Sales Potential  €4bn
from Products Launched 2011 – 2016*
.
Seeds
Fungicides
Biologics
Insecticides
SeedGrowth
Herbicides
~400
~500
30%
35%
~500
37%
~600
2010
2011
2012
~1,200
~800
2016e
* Estimated and subject to regulatory approval
Page 126 • Bayer Investor Presentation • Meet Management • June 2013
Extending the Seeds Footprint
Build up a proprietary soybean
seed business
Build up a global wheat seed business
 LibertyLink herbicide tolerance technology
broadly outlicensed
 Significant investment into R&D of new
wheat varieties and traits
 Acquisition of Hornbeck Seed Company in
the US
 Focus on productivity, stress tolerance,
nutrient uptake
 Bayer soybean seed launched in 2012
 First new varieties expected by 2015
in Europe
 Presence in soybean market in Brazil
stepped up with bolt-on acquisitions
 Broad germplasm pool and promising trait
pipeline
 Next-generation trait technology licensed
from Monsanto
 Several agreements closed with wheat
players to establish a broad germplasm pool
 Wheat breeding stations set-up in Europe,
US, Australia
Page 127 • Bayer Investor Presentation • Meet Management • June 2013
Access to Next-Generation and Enabling
Trait Technologies for Soybeans
 Cross-licensing agreement with Monsanto entered in April 2013
 Monsanto will provide Bayer with royalty-bearing licenses to specified trait technologies
in soybeans, with stacking-rights under certain conditions
 Genuity® Roundup Ready 2 Yield®: glyphosate tolerance
Weed
control
Pest
control
 Genuity® Roundup Ready 2 Xtend™: glyphosate & dicamba tolerance
 Regions: United States and Canada
 Intacta RR2 PRO™: first‐ever insect-protected trait in soybeans,
providing control of lepidopteran pests
 Regions: Brazil, with an option to a royalty-bearing license in other
Latin-American countries in the future
 Licensed traits fit nicely with our own technology such as LibertyLink
 Ability to offer additional pest control options and an all-inclusive weed resistance
package in soybeans
 Bayer will grant Monsanto licenses to evaluate certain enabling technologies
Page 128 • Bayer Investor Presentation • Meet Management • June 2013
Genuity® Roundup Ready 2 Yield®, Genuity® Roundup Ready 2 Xtend™
and Intacta RR2 PRO™ are trademarks of Monsanto
Strategic Progress Achieved
Enhance
Crop Protection
● €1.1bn sales in 2012 with products launched since 2006
● All WHO class I insecticides removed from our portfolio
● Expansion of Biologics
Strengthen
Customer
Centricity
● Increased grower orientation
● Improved channel management practices
● Broadened food chain partnership business model
Lead the Way
in Innovation
● Pipeline Peak Sales Potential*  €4bn
● Increased investment in Seeds R&D
● Innovating at the interface between chemistry and biology
Expand Seeds
Business
● Strengthened positions in cotton, canola and rice
● Increased investments in soybean, wheat and vegetables
● Development of innovative traits
* from products launched between 2011-2016
Page 129 • Bayer Investor Presentation • Meet Management • June 2013
2012
CAGR 2015e
Targeting Above Market Growth
at Benchmark Profitability
Page 130 • Bayer Investor Presentation • Meet Management • June 2013
Seed and Crop Protection Market Expected
to Grow  5% in 2013
 Persistently high prices for agricultural commodities
 Slightly weaker but nonetheless positive market development overall
 Growth coming mainly from North and Latin American followed by
Eastern European markets
 Asia / Pacific: cereals, rice and specialty crops fueling market growth
Page 131 • Bayer Investor Presentation • Meet Management • June 2013
CropScience – Above Market Growth at
Benchmark Profitability
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
2012
Target
2013*
Aspiration
2015
+12.4%
to €8.4bn
high-single
digit %
towards €9bn
CAGR ~6%
towards
€10bn
 Translate R&D effectively into new
product sales (CP products launched since 2006)
€1.1bn
~€1.4bn
~€1.9bn
 Extend seeds footprint
+14%
 Maintain industry leading profitability level
24.0%
Priority
 Above-market sales growth
Page 132 • Bayer Investor Presentation • Meet Management • June 2013
double-digit % double-digit %
growth p.a.
growth
slight
improvement
~24%
CP: Crop Protection
*Assuming Fx rate of $1.29 per €
Outlook depends on specific planning assumptions as detailed in the Annual Report
We are Ensuring a World-Class Product
Supply by Further Investing
Capital Expenditures (PPE only, in €m)
~500
~500
~500
 Building up capacity for top Crop
Protection brands including herbicide
Liberty/Basta and fungicide product
families Nativo and Prosaro
 €380m investment in construction of a
new glufosinate-ammonium production
plant in the US until end of 2015
303
 Expanding our Seeds infrastructure
(breeding stations, greenhouses and
seed processing facilities)
 Expanding and modernizing R&D
facilities (RTP/USA, Davis/USA,
Monheim/Germany)
2012
2013e
2014e
2015e
Page 133 • Bayer Investor Presentation • Meet Management • June 2013
Bayer MaterialScience
Investor Handout – Meet Management
June 2013 – New York
MaterialScience –
Leading Positions in All Segments
Sales in € million
Sales Split by Segment 2012
Polyurethanes
€5,987m
 #1-2; approx. 20-24% market share
25%
Polycarbonates
€2,819m
 #1; approx. 27% market share
52%
6%
17%
MaterialScience €11,491m
Coatings, Adhesives, Specialties
€1,972m
 #1; >40% market share*
Industrial Operations
€714m
* aliph. isocyanates
Page 135 • Bayer Investor Presentation • Meet Management • June 2013
MaterialScience –
Global Production Network
Americas
PUR PCS
Position*
#1
#2
Asia/Pacific
PUR PCS CAS
Position* # 2-3 # 1-2
#1
CAS
#1
EMEA#
PUR PCS
Position*
#1
#1
CAS
#1
Headquarter
Major Production Sites
Downstream Businesses
*Market share based on estimated sales following self-assessment
# Europe, Middle East & Africa
Page 136 • Bayer Investor Presentation • Meet Management • June 2013
MaterialScience –
Sales By Key Customer Industries
Bayer MaterialScience sales by industry in 2012
Chemicals
Automotive
8%
20%
Others
(sports, leisure, footwear
packaging, medical, etc.)
20%
Electro/
Electronics
28%
16%
17%
Furniture / Wood
Page 137 • Bayer Investor Presentation • Meet Management • June 2013
19%
Construction
MaterialScience as an Integrated Solution
Provider
Ongoing
urbanization
New and
improved
transportation
systems
Need for
better
energy
efficiency
Higher
living
standards
Proportion of city
dwellers expected to
increase from 50%
in 2010 to 70% in
2050*
Lightweight cars
EcoConstruction with
high thermal insulation
standards
Over 40m people
enter the middle class
every year
Cold-chain efficiency
Improved housing
standards
New energy vehicle
development
High-speed rail transportation networks
Megatrends offer business opportunities worldwide, with the emerging
economies at the forefront
Source: Steria, The Future Report 2012
Page 138 • Bayer Investor Presentation • Meet Management • June 2013
Mixed Performance
Page 139 • Bayer Investor Presentation • Meet Management • June 2013
Full Year 2012 –
Operating Performance
In € million; ∆% y-o-y, () Fx & portfolio adj.
2012 Sales
Polyurethanes
+12% (+8%)
Earnings
Polycarbonates
-3% (-7%)
25%
5,987
Adjusted
EBIT*
Adjusted
EBITDA*
1,262 +8%
1,171
2,819
589
613
2011
2012
+4%
714
Industrial
Operations
+8% (+6%)
Coatings,
1,972
Adhesives,
Specialties +3% (+4%)
MaterialScience €11,491m; +6% (+3%)
Price
1%
Volume
+2%
Fx
+4%
Portfolio
-1%
2012
2011
* before special items
Page 140 • Bayer Investor Presentation • Meet Management • June 2013
Full Year 2012 –
Regional Sales Development
Sales in € million; ∆% y-o-y Fx adjusted
2012 MaterialScience Sales
Emerging Economies
+1%
USA
+7%
Emerging
Economies¹
+3%
20%
42%
43%
~2,760
+15%
36%
32%
Western
Europe -2%
+7%
5%
4%
~920
~680
~575
Eastern
Europe
Africa &
Middle East
Others²
+2%
MaterialScience €11,491m; +2%
Emerging
Asia³
Latin
America
-5%
¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, ² Others = Japan, Australia, New Zealand, Canada
New Zealand, Africa and Middle East incl. Turkey, Eastern Europe
³ Emerging Asia = Asia without Japan, Australia, New Zealand
Page 141 • Bayer Investor Presentation • Meet Management • June 2013
Selling Price Increases & Savings Not
Sufficient to Protect Earnings
In € bn
11.5
 Market growth trends intact, key
products with mid-single digit volume
growth
10.8
10.2
8%
 High raw material prices and
significant capacity additions led to
global overcapacities and margin
pressure
6%
6%
6.6
6.2
5.4
 Going forward demand & supply
balance expected to improve
1.4
2010
Sales
1.3
1.2
2011
Raw Mat. & Energy Costs
 Anticipated margin improvement
supported by fresh savings from new
efficiency initiative
2012
Adj. EBITDA
CFROI
Page 142 • Bayer Investor Presentation • Meet Management • June 2013
Price For Key Input Benzene Recently
Increasing Again
Benzene vs Oil Price Development
in $/t
 Benzene and benzene derivatives
accounted for ~35% of raw material
exposure in 2012
1600
1400
 Benzene price level near record
highs
1200
 Benzene price driven by lower
demand of main refinery products
1000
800
600
Q4‘11 Q1‘12 Q2‘12 Q3‘12 Q4‘12 Q1‘13
Benzene
Brent Crude Oil
Page 143 • Bayer Investor Presentation • Meet Management • June 2013
Aspire to Earn a Premium Over
Cost of Capital
Page 144 • Bayer Investor Presentation • Meet Management • June 2013
Cash Generation in Excess of Own
Investment Need
In € million
Net Cash Flow
CapEx (cash-relevant)
Free Operating Cash Flow
~€3.6bn Free Operating Cash Flow in 11 years
1,388 673
1,281 592
1,108 206
1,147 277
1,113 649
902
870
782 110
715
464
690
849 345
763 265 775 210 735 114
672
498 166
504
498
2009
2010
565
621
332
2002
2003
2004
2005
2006
2007
2008
2011
2012
2002 and 2003 as reported in 2004 excluding acquisitions or divestments
Page 145 • Bayer Investor Presentation • Meet Management • June 2013
Higher Asset Utilization & Efficiency
Measures Are Driving Performance
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
2012
Target 2013
Aspiration 2015
 Sales +2.9% to €11.5bn
 Sales to slightly increase
to ~€12bn
 Grow business (volume)
above global GDP
 Defend market leading
positions in PCS and PUR
 Realize 150 bp margin
contribution through new
efficiency initiative
 Optimize asset structure
in Germany
 CFROI# > WACC
(volumes +2%)
 Adj. EBITDA +8% to
€1,262m
 Adj. EBITDA to match
2012 figure
 CFROI# 5.7% < WACC
7.1%
 Q2‘2013 vs Q1‘2013:
Sales to increase and adj.
EBITDA to significantly
increase
Page 146 • Bayer Investor Presentation • Meet Management • June 2013
*Assuming Fx rate of $1.29 per €
#after reproduction
Outlook depends on specific planning assumptions as detailed in the Annual Report
Outlook 2013 –
Economy and Key Customer Industries
Global Economic GDP Outlook
GDP growth % prev. year
Key Customer Industries Outlook
Sales by industry 2012 and expected 2013 growth
5
5.3
4
Automotive
Others
(incl.
Chemicals)
(+2%)
20%
28%
3
2
2.6
16%
1.8
1
0.0
0.4
Furniture
(+5%)
17%
19%
Electro /
Electronic
(+5%)
Construction
(+4%)
Page 147 • Bayer Investor Presentation • Meet Management • June 2013
*Assuming Fx rate of $1.29 per €
Outlook depends on specific planning assumptions as detailed in the
Annual /Quarterly Report
Profitability Improvement Through New
Efficiency Initiative Until 2015
 New efficiency initiative improves cost structure and increases adjusted EBITDA
margin by 150bp
 Initiative comprises more than 100 measures across the entire value chain
Examples
Business Units
 Consolidation of system houses
 Pricing excellence programs
Organization
 Optimization of regional structures (e.g. Canada & US)
Production
 Further initiatives to improve asset productivity (e.g. maintenance
schedules, engineering setup)
Supply Chain
 Optimization of logistics services
Selling &
Administration
 Further reduce costs by leveraging established global ERP
platform and standardized processes
ERP: enterprise resource planning
Page 148 • Bayer Investor Presentation • Meet Management • June 2013
Status
Benefits*
Process
Process Technology Advances Lower Cost &
Save Energy
TDI Gas Phase
Phosgenation
Adiabatic Aniline
Production
 Uses up to 60% less
energy
 Uses 25% less energy
 Uses 30% less energy
 Requires 80% less solvent
 20% less CO2 emissions
 CapEx reduced by 20%
 CapEx reduced by 30%
 Reduces indirect CO2
emissions
 World-scale facility
since 2011 in Shanghai,
China
 Pilot plant in Antwerp,
Belgium
 Demo facility in KrefeldUerdingen
 Technology to be used in
new TDI plant in Dormagen
 Plant in Shanghai since
2010
 External marketing
planned from 2013
Page 149 • Bayer Investor Presentation • Meet Management • June 2013
ODC Technology for
Chlorine Production
*Compared with conventional technology
ODC: Oxygen depolarized cathode
Focus on Capital Discipline
In € million
CapEx vs Depreciation
CapEx Strategy
813
● Investment focus on utilization
improvement
600 599
● Investment in efficiency is the basis
for future profitable growth
527
462
460
● CapEx on depreciation level for 2013
and the foreseeable future
2008
2010
CapEx (PPE only)
2012
2013e
Depreciation
Page 150 • Bayer Investor Presentation • Meet Management • June 2013
9.2 billion people
7.7
6.1
5.3
1990
2000
2020e
2050e
Capitalizing on Global
Megatrends
Page 151 • Bayer Investor Presentation • Meet Management • June 2013
Our High-tech Materials Meet Key Customer
Industry Needs
Construction
Polycarbonates
Polyurethanes
& CAS
Automotive
Electro / Electronics





Low weight for better energy efficiency in transportation
High mechanical strength enables product durability
Transparency for optical applications and architectural glazing
High heat resistance and reliable electrical insulation properties
Excellent design flexibility that goes beyond that of glass




Outstanding thermal insulation properties
Versatility allowing full spectrum of flexible to rigid foam applications
Excellent abrasion resistance and rebound resilience
Durability for reliable protective coatings
CAS: Coatings, Adhesives, Specialties
Page 152 • Bayer Investor Presentation • Meet Management • June 2013
Polyurethane-based Insulation
for Residential & Commercial Buildings
Growth drivers
PUR Isoboards for Thermal Insulation
 External Thermal Insulation Composite
Systems (ETICS) save >25% energy
compared with other insulation materials
 Joint solution development with key industry
players to fulfill high industry requirements
PUR Metal Sandwich Panels
 Prefabricated and mainly applied for industrial
and commercial buildings as well as cold
storage
 Easy handling and fast site assembly
Page 153 • Bayer Investor Presentation • Meet Management • June 2013
 EU: From 2020 on, new
buildings have to be
constructed as “nearly zeroenergy buildings”
 US: New standard requires
30% less energy use for
renovated homes and
commercial buildings
 1 kg polyurethane saves 360 to
755 kg CO2 emissions*
 PUR in construction industry in
2012: approx. €5.7bn,
estimated average growth rate
of ~8% p.a.
*Additional insulation, savings over entire product life-cycle of 50 years, including
production and end-of-life stages; PUR: polyurethane
Polyurethane-based Insulation
in Cold Chain
Growth drivers
 Globally more stringent energy
saving regulations
Refrigerators
 Refrigeration accounts on average for 20% of
a household’s electricity consumption
 Replacing all old refrigerators with A++
appliances could cut annual CO2 emissions in
the EU by 22 million metric tons
 PUR insulation increased energy efficiency of
refrigerators by 65% from 1950-2005
 BMS’s innovative Baytherm® Microcell foam:
 Reduces pore size of foam up to 40%
 Reduces thermal conductivity up to 10%
 Increasing demand for transporting temperature sensitive
goods
 Increasing standard of living in
emerging markets triggers
continuously growing demand for
appliances
 PUR in refrigerator industry
2012: approx. €2.6bn, estimated
average growth rate of ~6% p.a.
PUR: polyurethane
Page 154 • Bayer Investor Presentation • Meet Management • June 2013
Increased Energy Efficiency in Cars Through
Polycarbonates
Growth drivers
Polycarbonates
 Heat stability and optical quality enable new
LED-based lighting systems
 Flame-retardant polycarbonate blends protect
batteries used in future cars with hybrid
engines
 Car body parts made from polycarbonate
blends reduce weight
 Automotive glazing out of polycarbonate
combines high weight saving potential with
outstanding thermal insulation
 Broad global political initiatives
promoting e-mobility
 Increasing use of electrical
devices requires flame
retardancy of plastics
 Polycarbonate glazing offers a
weight advantage of 30-50%
compared to real glass
 81m light vehicles* produced
globally in 2012, estimated
average growth rate of 5-6%
p.a.
*includes cars and light commercial vehicles up to a weight of 6t
Page 155 • Bayer Investor Presentation • Meet Management • June 2013
Date
Event
Publication
Wednesday,
July 31, 2013
Investor Conference
Call
Second Quarter 2013 Results
Stockholders’ Newsletter
Thursday,
October 31, 2013
Investor Conference
Call
Third Quarter 2013 Results
Stockholders’ Newsletter
Tuesday,
October 8, 2013
Meet Management in Investor Conference
London
Friday,
February 28, 2014
Investor Conference
Call
2013 Annual Report
Monday,
April 28, 2014
Investor Conference
Call
First Quarter 2014 Results
Stockholders’ Newsletter
Tuesday,
April 29, 2014
Annual General
Meeting
Reporting Events and AGM
Dr. Alexander Rosar
Head of Investor Relations
Phone: +49-214-30-81013
E-mail: [email protected]
Dr. Jürgen Beunink
Judith Nestmann
Phone: +49-214-30-65742
Phone: +49-214-30-66836
E-mail: [email protected] E-mail: [email protected]
Peter Dahlhoff
Phone: +49-214-30-33022
E-mail: [email protected]
Constance Spitzer
Phone: +49-214-30-33021
E-mail: [email protected]
Fabian Klingen
Phone: +49-214-30-35426
E-mail: [email protected]
Dr. Olaf Weber
Phone: +49-214-30-33567
E-mail: [email protected]
Investor Relations Contacts