meet management 2013 investor handout

Meet Management 2013Leverkusen, March 19, 2013Investor Handout

• Bayer Investor Presentation • Meet Management • March 2013

Disclaimer

This 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 noliability whatsoever to update these forward-looking statements or to conformthem to future events or developments.

• Bayer Investor Presentation • Meet Management • March 2013Page 1

Our Mission –Innovation and Customer Value

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 understandingof human, animal and plant health, as well as of high-quality materials

Respect for people and nature is an essential part of our values

Science / Innovation Better Life

Science For A Better Life


Our Business Portfolio –Leading in Its Markets

Break-down excluding reconciliation

Sales 2012: €39.8bn

CropScienceChemical crop protection & biologicals, global #2, seeds & traits

€8.4bn

MaterialSciencePolyurethanes and polycarbonates,global #1/2

€11.5bn

HealthCarePharmaceuticals €10.8bn,leading positions in core indications

Consumer Health €7.8bn,OTC pharmaceuticals, blood glucose meters, contrast media and veterinary medicines, global #2-5

€18.6bn

22%

30%

48%

We are Generating the Vast Majority of our Business in the Life Sciences

• Bayer Investor Presentation • Meet Management • March 2013Page 3*EBITDA before special items

22%

30%

45%

85% 15%

Sales 2012 Adj. EBITDA 2012*

HumanHealth

3%

Breakdown excluding Reconciliation

MaterialScience

Plant Health

AnimalHealth

LifeSciences

MaterialScience


Full Year 2012: Significant Strategic and Operational Progress


Full Year 2012 –Very Good Year, Operational Targets Achieved

EBITin € million

-5%

3,9604,149

Salesin € million% currency & portfolio adj.

+5%

39,76036,528

EBITDAbefore special itemsin € million

+9%

8,2847,613

Core EPSin €

+11%

5,354,83

FY’12FY’11 FY’12FY’11 FY’12FY’11 FY’12FY’11

Full Year 2012 –All Subgroups With Higher Sales and EarningsSales & adj. EBITDA (=before special items) in € million, sales ∆% y-o-y Fx and portfolio adjusted

HealthCare

Pharma

Consumer Health

CropScience

MaterialScience

Sales Adj. EBITDA

3,203+8%

1,865+8%

2,008+21%

1,251+7%

5,068+8%

10,803+4%

7,809+4%

8,383+12%

11,503+3%

18,612+4%


• Bayer Investor Presentation • Meet Management • March 2013Page 7¹ Emerging economies include: Latin America, Asia w/o Japan, Australia,

New Zealand, Africa and Middle East incl. Turkey, Eastern Europe

2012 Group Sales Highlights Emerging EconomiesIn € million, ∆% yoy Fx adjusted

BRIC

+13% with HealthCare +23% and CropScience +20%

+16% driven by CropScience, but also MaterialScience strong

+19% with both Consumer Healthand MaterialScience +25%

+8% driven by CropScience and MaterialScience

+12% driven mainly by ourLifeScience businesses

EmergingEconomies¹

+7%

Developed Economies

+3%

Group €39,760m; +5%

63%

Full Year 2012 –Continued Strong Emerging Markets Growth

37%


Workforce in the Emerging Markets Consistently Increased

2009 2010 2011 2012Emerging Economies Developed Economies

111.0 111.4 111.8 110.5

65% 64% 63% 62%

35% 36% 37% 38%

Net reduction in total workforce by ~500 during last 4 years

Net increase of workforce in Emerging Countries (~3,200),especially in Emerging Asia

Concurrent workforce decline in Western Europe and North America

Breakdown FTE figures in 1,000 as of Dec 31

Initiated shift of workforce in linewith business to Emerging Markets

Sales in €bn

31.2 35.1 36.5 39.8

• Bayer Investor Presentation • Meet Management • March 2013Page 9CRPC: Castration resistant prostate cancer; PAH: Pulmonary arterial hypertension,

CTEPH: Chronic thromboembolic pulmonary hypertension;GIST: Gastrointestinal cancer

Full Year 2012 – Important Progress on Key Pharma Pipeline Assets

2012 sales of €322m above target following further launches and indication expansions

Encouraging early feedback from first launches

Positive feedback from commercial launch in the US, received US approval for GIST in Feb. 2013

Submitted for treating bone metastases in patients with CRPC (Dec. 2012)

Demonstrated efficacy in PAH and CTEPH in pivotal phase III trials, submitted (Feb. 2013)

Radium-223 dichloride

Combined peak sales potential of >€5.5bn

Innovations at CropScience

• Bayer Investor Presentation • Meet Management • March 2013Page 10IVM: Integrated vegetation management

Cereals

Corn and soybeans

Fruits & vegetables

Perennial crops

IVM and turf segment

Protects against fungus Rhizoctonia

Protects against nematodes

Conventional oilseed rape for Europe

New cotton varietiesProprietary glyphosate tolerance

New soybean varieties

New canola varieties with improved agronomic traits

Numerous new vegetable varieties

Fungicides

Herbicides

SeedGrowth

Seeds


Full Year 2012 –Dividend Proposal

Target is to pay out 30 to 40% of core EPS

Successive history of dividend payment for 60 years

Proposed dividend of €1.90 for 2012 up 15% vs. prev. year

Proposal corresponds to a payout of 2012 core EPS of 36% or €1,571m

2007-2012* Dividend Policy

EPS (IFRS) Core EPS Dividend per share

*in Euro per share#proposed dividend

1.35 1.40 1.40 1.501.65

0

1

2

3

4

5

6

2007 2008 2009 2010 2011 2012

1.90#


Priorities, Targets, Aspirations

Full Year 2013 Outlook Projects Further Growth And Higher Earnings


2012 ∆ vs. 2011 2013E

Sales €39.8bn +5% +4-5% to~€41bn*

adj. EBITDA €8.3bn +9% mid-single-digit % increase

Core EPS €5.35 +11% high-single-digit % increase

Sales ∆ Fx and portfolio adjusted, EBITDA before special items

*Assuming Fx rate of $1.29 per €Outlook depends on specific planning assumptions as detailed in the Annual Report

Full Year 2013 –R&D And CapEx Budgets


2%

MaterialScience~€0.2bn

HealthCare~€2.1nthereof Pharma~€1.7bn

MaterialScience~€0.6bn

HealthCare~€0.6bn

Reconciliation~€0.1bn

65%

26%

7%

Reconciliation~€0.3bn

CropScience~€0.8bn

CropScience~€0.5bn

CapEx (PPE) 2013e: ~€1.9bn (+24%)R&D 2013e: ~€3.2bn (+7%)

32%

25%

28%

14%


Priority 2012 Target 2013*

Aspiration 2015

HealthCare: Accelerate sales growth €18.6bn

Pharma: Successfully commercialize new products and realize emerging markets (EM) opportunity New product sales¹ EM growth

Consumer Health: Aspire to become #1 OTC company €7.8bn ~€9bn

HealthCare: Improve margins Pharma Consumer Health

27.2%29.6%23.9%

slightly upslightly up

at level

towards 29%≥31%~25%

HealthCare –Building Growth Momentum, Improving Margins

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

€10.8bn

€368m7.5%

mid-single-digit % to ~€11bn

~€1bnhigh-single

digit %

CAGR ~7% towards €13bn

>€2.5bnhigh-single

digit %




Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales

Pharma – New Products Drive Growth and Rejuvenate Portfolio


86

368

~1,000

>2,500

2011 2012 2013e 2015e

Sales from new Pharma pipeline in €m

Xarelto 322Eylea 14Stivarga 32

Global roll-out ongoing, targeting ~€600m sales in 2013

Global roll-out in wAMD, first launches in CRVO expected during H2 2013

US launch ongoing, CHMP opinion expected 1H 2013, Japan submitted July 2012

Regulatory decision in the US expected for 2H 2013 (filed Dec. 2012)


Submitted for PAH and CTEPH (Feb. 2013)

CTEPH: chronic thromboembolic pulmonary hypertension; CRVO: central retinalvein occlusion; PAH: pulmonary arterial hypertension;

wAMD: wet age-related macular degeneration


CropScience – Above Market Growth at Benchmark Profitability


Aspiration 2015

Above-market sales growth +12.4% to €8.4bn

high-single digit %

towards €9bn


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% slight improvement ~24%


double-digit % growth p.a.

CP: Crop Protection*Assuming Fx rate of $1.29 per €


double-digit % growth

CropScience – Translate R&D Effectively into New Product Sales


Xpro (+61%) - New cereal fungicide with yield-boosting effect

Adengo herbicide family (+85%) -Excellent weed control in corn and cereals, also in case of glyphosate resistance

Belt (+54%) - Broad-spectrum insecticide with fast and long-lasting action

Launch of Luna fungicide in the US

First launch of new SeedGrowth family EverGol/Emesto in Canada

0.02

0.3

0.7

1.1

~1.4

~1.9

2007 2009 2011 2012 2013e 2015e

+60%

2012 HighlightsSales from new Crop Protection products launched since 2006 in €bn∆% y-o-y, () Fx adj.



*Assuming Fx rate of $1.29 per €#after reproduction


MaterialScience – Higher Asset Utilization & Efficiency Measures Are Driving Performance

2012 Target 2013 Aspiration 2015

Sales +3.0% to €11.5bn (volumes +2%)

Adj. EBITDA +7% to €1,251m

CFROI# 5.6% < WACC 7.1%

Sales to slightly increase to ~€12bn

Adj. EBITDA to further improve

Q1‘2013 vs Q4‘2012: Sales to further increase and adj. EBITDA at same level

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


Appendix

Q4 2012 –Cash Flow and Net Debt Development


+€223m 7.0GCF oFCF

755

Invest-ments

743 160

∆ %y-o-y -25 -63

NCFcont.

903

-22 +2Q3´12 Q4´12

6.8

Q4’12 Cash Flow Net Debt DevelopmentCash Flow in € million, Net Debt in € billion

Net debt increase of €1bn due to pension funding, partly offset by positive cash generation

Q4 2012 –HealthCare

• Bayer Investor Presentation • Meet Management • March 2013Page 22*before special items

Q4’12 Sales Earnings

Pharma+7% (+5%)

ConsumerHealth

+7% (+5%)36%

HealthCare €4,923m; +7% (+5%)

2,8672,056

Price0%

Volume+5%

Fx+2%

Portfolio0%

In € million, ∆% yoy, () = Fx & portf. adjusted

Q4‘11 Q4‘12 Q4‘11 Q4‘12

758827

422515

+9%

+22%

1,180

1,342 +14%

317 +28%

8151,001 +23%

498

407

Adj.EBITDA*

Adj.EBIT*

594 +19%

Q4 2012 –CropScience


Crop Protection+12% (+11%)

EnvironmentalScience

+18% (+16%)

*before special items

Seeds-10% (-11%)

Q4’12 Sales Earnings In € million, ∆% yoy, () = Fx & portf. adjusted

CropScience €1,856m; +11% (+9%)

Price0%

Volume+9%

Fx+2%

Portfolio0%

1,540

Q4‘11 Q4‘12 Q4‘11 Q4‘12

273289 +6%

145162 +12%

Adj.EBITDA*

Adj.EBIT*

174142

Q4 2012 –MaterialScience

• Bayer Investor Presentation • Meet Management • March 2013Page 24 **CAS: Coatings, Adhesives, Specialties*** IO: Industrial Operations

Polyurethanes+11% (+9%)

Polycarbonates0% (-3%)

CAS**+3% (+5%)

Q4’12 Sales Earnings In € million, ∆% yoy, () = Fx & portf. adjusted


MaterialScience €2,761m; +6% (+5%)

Price+2%

Volume+3%

Fx+2%

Portfolio-1%

1,473669

IO***0% (-1%)

Q4‘11 Q4‘12Q4‘11

Q4‘12

Adj.EBITDA*

Adj.EBIT*

106

255 +141%

-48

93 +294%451

168


Q4 2012 –Regional Performance

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

Western Europe

+1%

~1,560

~1,420

+14%

~460

-1%~520

+12%

Q4’12 Group Sales by Region Emerging EconomiesIn € million, ∆% yoy Fx adjusted

Group €9,862m; +5%

Emerging Asia³

LatinAmerica

EasternEurope

Africa & Middle East

EmergingEconomies¹

+9%

Others²+2%

USA+5%

40%

30%

20%

10%

+7%

Full Year 2012 –Cash Flow and Net Debt Development


+€15m 7.0GCF oFCF

4,599

Invest-ments

1,929 2,603

∆ %y-o-y -11 -24

NCFcont.

4,532

-10 +19FY´11 FY´12

7.0

2012 Cash Flow Net Debt DevelopmentCash Flow in € million, Net Debt in € billion

Net debt constant, despite €1bn pension funding in Q4’2012

Full Year 2012 –HealthCare


2012 Sales Earnings

Pharma+9% (+4%)

ConsumerHealth

+8% (+4%)36%

HealthCare €18,612m; +8% (+4%)

10,8037,809

Price0%

Volume+4%

Fx+4%

Portfolio0%


FY‘11 FY‘12 FY‘11 FY‘12

2,9723,203

1,7301,865

+8%

+8%

4,7025,068 +8%

1,325 +9%

3,3673,736 +11%

2,042

1,438

Adj.EBITDA*

Adj.EBIT*

2,298 +13%

Full Year 2012 –CropScience




+9% (+5%)


Seeds+17% (+14%)

2012 Sales Earnings In € million, ∆% yoy, () = Fx & portf. adjusted

CropScience €8,383m; +16% (+12%)

Price+1%

Volume+12%

Fx+4%

Portfolio-1%

6,741

FY‘11 FY‘12 FY‘11 FY‘12

1,654

2,008 +21%

1,168

1,526 +31%

Adj.EBITDA*

Adj.EBIT*

680962

Full Year 2012 –MaterialScience

• Bayer Investor Presentation • Meet Management • March 2013Page 29 **CAS: Coatings, Adhesives, Specialties*** IO: Industrial Operations




Price+1%

Volume+2%

Fx+4%

Portfolio-1%

5,995

FY‘11 FY‘12 FY‘11 FY‘12

Adj.EBITDA*

Adj.EBIT*

1,1711,251 +7%

589629 +7%

Polycarbonates-2% (-7%)

CAS**+3% (+4%)

2,823

IO***+8% (+6%)

1,972

713


Full Year 2012 –Regional Performance



EasternEurope

Emerging Economies

EmergingEconomies¹

+7%

Others²+4%

USA+9%

Western Europe0%

2012 Group Sales by Region

Group €39,760m; +5%

~4,900

+12%~5,700

+5%

~1,800

0%~2,400

+10%


² Others = Japan, Australia, New Zealand, Canada³ Emerging Asia = Asia w/o Japan, Australia, New Zealand

In € million, ∆% yoy Fx adjusted

37%

11%31%

21%

Latin America

Emerging Asia³

Investor Handout – Meet ManagementBayer HealthCare

March 2013 – Leverkusen

Leading Positions in Key Healthcare Markets


Pharma€10,803m Leading positions in key therapeutic categories

Consumer Care €3,853m Global #2 in OTC-pharmaceuticals

Medical Care €2,653m #1 in fluid injection systems, #1 in contrast media,

#4 in blood glucose meters

Animal Health €1,303m Global #5, #2 in parasiticides

Sales Split by Segment 2012

25%

58%

7%

21%

14%

HealthCare €18,612m

Full Year 2012 –Growth in All Segments


2012 Sales Earnings

Pharma+9% (+4%)

ConsumerHealth

+8% (+4%)36%

HealthCare €18,612m; +8% (+4%)

10,8037,809

Price0%

Volume+4%

Fx+4%

Portfolio0%


2011 2012 2011 2012

2,9723,203

1,7301,865

+8%

+8%

4,7025,068 +8%

1,325 +9%

3,3673,736 +11%

2,042

1,438

Adj.EBITDA*

Adj.EBIT*

2,298 +13%

Full Year 2012 – Strong Business Momentum in Emerging Markets


Emerging Economies

25%

2012 HealthCare Sales

LatinAmerica

Eastern Europe


~2,100

+12%

~2,100

+8%

~1,100

+9%

~900

+1%

24%

USA+6%

29%

33%

14%

Sales in € million; ∆% y-o-y Fx adjusted

EmergingEconomies¹+8%

Emerging Asia³

Western Europe -1%

Others²+1%

HealthCare €18,612m¹ Emerging economies include: Latin America, Asia w/o Japan, Australia,

New Zealand, Africa and Middle East incl. Turkey, Eastern Europe² Others = Japan, Australia, New Zealand, Canada³ Emerging Asia = Asia without Japan, Australia, New Zealand

Bayer is One of The Leading International HealthCare Companies in China


Driven by Pharmaceuticals (+21% Fx-adj)

~1,500 sales representatives added since 2011

Improved presence in lower-tier cities in 2012: Bayer has presence in all tier 1-4 cities and in a substantial number of tier 5 cities

€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 2012 ~€1.5bn +21% y-o-y (Fx-adj.)

Adalat

Avelox

Top products growth in 2012Aspirin

+17%

+26%

+39%

+17%

Glucobay


+12%

Nexavar

Avelox

Ultravist +29%

Launch in SPAF Positive phase III-data in EINSTEIN PE Approval/launch in PE/DVT-treatment (US) Approval/launch in PE-treatment (EU)

First launches in wAMD Filings for CRVO

US-launch in mCRC (2012) and mGIST (Feb. 2013) Positive phase III-data in mCRC Positive phase III-data in GIST Filings in GIST and mCRC

Full Year 2012 – Outstanding Clinical and Regulatory Progress


SPAF: stroke prevention in atrial fibrillation; PE: pulmonary embolism; DVT: deep vein thrombosis; wAMD: wet age related macula degeneration; CRVO: central retinal vein occlusion; mCRC: metastatic colorectal cancer: GIST:

gastrointestinal stromal rumors; PAH: pulmonary arterial hypertension; CTEPH: chronic thromboembolic pulmonary hypertension;mCRPC: metastatic castration resitant prostate cancer

Positive phase III-data in PAH and CTEPH Filed for PAH and CTEPH in Feb‘13

US and EU filings in mCRPC

Flexyess: successful conclusion of EU registration

Phase III-data for LNG-IUS12 and LNG-IUS16 Jaydess: successful conclusion of EU

registration

Initiation of phase III for longer-acting rFVIII(BAY 94-9027) and phase II/III for rFVIIa(BAY86-6150)


Women‘s Healthcare

Hemophilia

Top 10 Pharma Product Performance in 2012


FY 2012 sales in € million (∆% yoy Fx-adj.)

YAZ-family

Betaseron

Kogenate

Adalat

Glucobay

Avelox

Nexavar

Mirena

Xarelto

Aspirin C.

+4%

+5%

-5%

+4%

+9%

-2%

-5%

+12%

+4%

+266%

1,216

1,182

1,045

677

322

486

792

670

476

408

Multiple Sclerosis

Hemophilia A

Contraception

Cancer

Contraception

Hypertension

Antiinfective

MI prevention

Diabetes

Anticoagulation

MI: Myocardial infarction

Consumer Health –Best-Selling Products in 2012


494*

323

269

250

196

174

+1%

+5%

+14%

+8%

+4%

-12%

722 +9%

495 +11%

324 -1%

209 +27%

* Only Aspirin CC sales, excluding Rx Aspirin Cardio



Building Growth Momentum –Improving Margins

HealthCare –Building Growth Momentum, Improving Margins



Aspiration 2015

HealthCare: Accelerate sales growth €18.6bn

Pharma: Successfully commercialize new products and realize emerging markets (EM) opportunity New product sales¹ EM growth

Consumer Health: Aspire to become #1 OTC company €7.8bn ~€9bn

HealthCare: Improve margins* Pharma Consumer Health

27.2%29.6%23.9%

slightly upslightly up

at level

towards 29%≥31%~25%

€10.8bn

€368m7.5%


~€1bnhigh-single

digit %


>€2.5bnhigh-single

digit %





¹ Xarelto, Eylea, Stivarga, Radium-223-Dichloride and Riociguat; subject to regulatory approval*Assuming Fx rate of $1.29 per €


The Leader in Women’s HealthCare


Yaz family

Sales ∆% y-o-y, () Fx adj.

Women’s Healthcare 2012

€3,154m+5% (+2%)

+17 (+9)Mirena

+7 (+5)Diane

-2 (-5)

+37 (+35)Qlaira

Other products +13 (+10)

0 (-1)Microgynon

-31 (-31)Valette

-8 (-8)Meliane

+6 (+4)Angeliq

Mirena – The Leading Hormonal Long-Acting Contraceptive


Intrauterine device, containing levonorgestrel, for reversible long-term contraception

Life-cycle opportunities: Small low-dose long-acting (up to 3

years) device: Jaydess: successful conclusion

of EU registration Skyla: US-launch in Feb. 2013

Phase III for a long-acting (up to 5years), low-dose, small contraception device underway

2013 sales target: high-single to low-double-digit % increase

Sales in € million; ∆% Fx adj.

2009 2010 2011 2012

272

218

285

254

313

268

385

292

US Rest of the world

490539

581

677+9%

2009 2010 2011 2012

Hemophilia Franchise –Stable Growth


Global # 2 in hemophilia A treatment

Competitive development program in hemophilia underway:

Phase III with long-acting Factor VIII (BAY 94-9027)

Phase III with product from plasma-free process (BAY 81-8973)

Phase II/III with modified recombinant Factor VIIa (BAY 86-6150)

2013 sales target: low-single-digit % increase


250

638

299

705

290

785

332

850


8881,004

1,0751,182+5%

Betaseron – Long-term Experience in Multiple Sclerosis Treatment


First interferon launched in multiple sclerosis, introduced in 1993

Wealth of clinical experience

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


2009 2010 2011 2012

479

735

473

733

447

670

578

638


1,214 1,2061,117

1,216+4%

Nexavar –Our Cornerstone in Oncology


Approved for kidney cancer (RCC) and for liver cancer (HCC)

Only approved drug with overall survival benefit in HCC

Positive phase III data in radioactive iodine refractory differentiated thyroid cancer (DECISION-trial)

Phase III trials in: Breast cancer RCC (adjuvant) HCC (adjuvant)

2013 sales target: mid-single-digit % increase


2009 2010 2011 2012

154

450

174

531

174

551

204

588


604

705 725792+4%

Nexavar –Design of the DECISION Phase III Study


Locally Advanced, Metastatic

RAI-Refractory Differentiated

Thyroid Cancer

Sorafenib 400 mg bid

Placebo

Primaryendpoint:PFS

randomisation

RAI: radioactive iodinebid: twice a day

● Study met primary endpoint ● Data to be presented at an upcoming scientific meeting ● Submission planned for 2013

Primary endpoint: Progression-free survival (PFS)

Secondary endpoints (selection): Overall survival, time to progression, response rate, disease control rate

Total number of patients enrolled: 419

Aspirin –More Than A Century of Growth


One of the world’s most recognized brands

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


2009 2010 2011 2012

315

400

358

418

404

471

476

494

Rx-Aspirin OTC-Aspirin

715776

875970+6%


New Products Drive Growth and Rejuvenate Portfolio

New Product Pipeline Strength

• Bayer Investor Presentation • Meet Management • March 2013Page 49*Combined peak sales potential for Xarelto, Stivarga, Eylea, Radium-223 dichloride

and Riociguat assuming approvals and launches planned

Combined* Peak Sales Potential >€5.5bn

First launches in first / main indication*

Rivaroxaban VEGF Trap-EyeRegorafenib Radium-223

dichloride Riociguat

2011 2012 2012 2013e 2014e

Radium-223dichloride


Xarelto –Strong Launch

Execution

Xarelto –Effective Anticoagulation For More Patients


Peak sales potential > €2bn

Breadth of indications: met or exceeded primary efficacy endpoint in 11/11 phase III studies

Phase III trial initiated for the secondary prevention of myocardial infarction and death in patients with coronary or peripheral artery disease

1) Clinical

2) Regulatory

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

Filed for secondary prevention of ACS in Europe and US (Complete Response LetterMarch 2013)

3) Marketing

SPAF: prevention of stroke and systemic embolism in patients with non-valvular atrial fibrillation; DVT: deep vein thrombosis; VTE: venous

thromboembolism; ACS: acute coronary syndrome

The Market for Anticoagulants is Attractive


Anticoagulants sales(MAT 9/2012)

Anticoagulants estimated treatmentdays in m (MAT 9/2012)

~$10.7bn

62%

7%

6%

15%10%

LMWH

VKA

UFH

DTI

Other

LMWHs: low molecular weight heparinsUFH: unfractionated heparinsVKA: vitamin K antagonistsDTI: direct thrombin inhibitors (incl. dabigatran)Other antithrombotics (incl. Xarelto®)

~2,200~100

~420

~200

~360

Strokepreventionin AF

VTE preventionafter orthopedicsurgery

Post ACS/MI

Otherprimaryprevention

VTEtreatment

~3,300m

AF: atrial fibrillationVTE: venous thromboembolismACS: acute coronary syndromeMI: myocardial infarction

Source: IMS MIDAS, GERS, FARMINFORM for sales Bayer estimates for patient treatment days in main markets

Xarelto –Strong Launch Execution


Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

272

23

US* Rest of the world

31


8

34

42

8

57

68

11

67

81

14

109

131

22

*Bayer reporting, not reflecting in-market sales

Exceeded 2012 sales target

Sales 2012: €322m

Sales advanced strongly in all regions following further product launches and indication expansions

Most successfull launch ever in theGerman cardiovascular market

Sales target 2013: ~€0.6bn

Xarelto –Development in Key Markets


Market Performance Market Share (IMS)

Germany: most successful launch ever in the cardiovascular market

Market share1 ~30% vs. dabigatran~10%

Japan: 2 week prescription limitation to be lifted in April 2013

Market share2 ~9%

Brazil: patient and prescriber base continously growing; now leader in the anticoagulant market

Market share3 ~34%

UK: generally low acceptance for novel oral anticoagulants

Market share 2~4% vs. dabigatran~4%

France: now level with dabigatran Market share1 ~13%, dabigatran~13%

US4: steady uptake with consistent positive indicators especially in cardiology, expanding access

~30% new to brand prescriptionshare5

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; 5: oral anticoagulant market

Status as of mid Feb 2013

Market Performance Market Share (IMS)


Eylea –Launch

Underway

Eylea –Major Progress Achieved

• Bayer Investor Presentation • Meet Management • March 2013Page 561: Regeneron has US marketing rights; AMD: age-related macular degeneration;

CRVO: central retinal vein occlusion; mCNV: myopic choroidal neovascularization

Bayer has marketing rights ex-US1, launched in first markets in wet AMD end 2012 (sales 2012: €14m)

Further roll out in wet AMD planned in Europe, Latin America & Asia in 2013 First launches in CRVO planned for 2H 2013

1) Clinical

2) Regulatory

3) Marketing

Positive phase III data in wet AMD and CRVO reported Phase III in DME and mCNV ongoing First phase III data in mCNV expected 1H 2013 First phase III data in DME expected 2H 2013

Filed for CRVO in EU/J


Retina Treatment is The Fastest Growing Area Within Ophthalmology

14

5

3

3

5

Glaucoma

Dry eyeOther

35.6

5.0

4.1

2.4

1.7

Anti-allergy / infec-tive/ inflammatory

Global Ophthalmology Market in $bn CAGR 2010-2022e in %

Retinal disorders

2010 2022

16.0

9.0

6.3

14.8

2.72.8

5.2

4.3

3.02.01.5

Source: Visiongain report, “Ophthalmic Drugs: World Market Prospects ”

e

Eylea – Developed for the Treatment of Various Back of the Eye Diseases


Peak sales potential ≥ €1bn

Eylea has been in-licensed from Regeneron; Bayer has exclusive marketing rights ex-USpatient numbers are Bayer estimates

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


Stivarga –Encouraging

Start

Stivarga (Regorafenib) – Three Dimensional Mode of Action


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)

Inhibition of neoangiogenesis

Inhibition of tumormicroenvironment signals

Inhibition of proliferation of certain tumor cells

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;

Stivarga –Major Milestones Achieved

• Bayer Investor Presentation • Meet Management • March 2013Page 61mCRC: metastatic colorectal cancer; mGIST: metastatic gastrointestinal

stromal tumors; HCC: hepatocellular carcinoma

1) Clinical Positive phase III data in mCRC and mGIST Phase III in 2nd line HCC initiated (RESORCE) Colorectal cancer (adjuvant therapy) expected to start 2H 2013

2) Regulatory

3) Marketing Launched in mCRC (Sep 2012) / mGIST (Feb 2013) in the US Sales of €32m in 2012, peak sales potential ≥ €1bn

Filed for mCRC in EU & Japan (priority review) Regulatory decision in Europe expected 1H 2013 Filed for mGIST in Japan (priority review) Filing for mGIST in Europe H1 2013e


AdvancedHCCafter failure ofsorafenib

Regorafenib 160 mg od 3 wks on /1 wk off

Placebo

Primaryendpoint:OS

2:1randomisation

Regorafenib Phase III in 2nd Line HCC (RESORCE) – Study Design

HCC: hepatocellular carcinoma (liver cancer)od: once a day

Primary endpoint Overall survival (OS)

Secondary endpoints (selection): Time to progression; progression-free survival; objective tumor response; disease control

Time frame (months): ~33

Number of patients to be enrolled: 530


Radium-223 dichloride –

First-in-Class Alpha-Pharmaceutical

Radium-223 dichloride – Addressing Significant Unmet Need

• Bayer Investor Presentation • Meet Management • March 2013Page 64CRPC: castration-resistant prostate cancer

Peak sales potential ≥ €1bn

Tumor cellsNewly formedbone

Radium-223 deposition highly localized tumor cell killingBone metastases

First-in-class alpha-pharmaceutical (Radium-223 dichloride)

Radium is a natural bone seeker, selectively targeting bone metastases with high-energy, short-range alpha-particles

Bone metastases occur at high incidences in certain late-stage cancers, for example prostate cancer

Inlicensed from Algeta

Radium-223 dichloride –Regulatory Progress Achieved


Submitted for treating bone metastases in patients with CRPC in Europe and the US in Dec 2012 (priority review granted by the FDA)

1) Clinical

Phase III (ALSYMPCA) in symptomatic castration-resistant prostate cancer (CRPC) patients with bone metastases stopped early – Radium-223 dichloride demonstrated 44% improvement in overall survival

Broader clinical development program planned: studies in earlier settings of prostate cancer, including combination studies and studies in other tumors (such as breast cancer and osteosarcoma)

2) Regulatory

3) Marketing

Launch preparations underway

Treatments for CRPC Patients with Bone Metastases Needed


~900,000 men diagnosed and ~260,000 died from prostate cancer p. a. worldwide1

CRPC is a form of advanced prostate cancer in which the tumor grows despite castrate levels of testosterone

Up to 90% of CRPC patients have radiological evidence of bone metastases

Bone metastases are the main cause of disability and death in patients with CRPC

No survival benefit from current bone-targetedagents

Bone metastasis occurs in almost all prostate cancer patients during the natural course of their disease

and typically targets the lumbar spine, vertebrae and pelvis2

1 World Health Organization. GLOBOCAN 20082 Bubendorf L, et al. Hum Pathol. 2000;31(5):578-83

CRPC: castration-resistant prostate cancer


Riociguat –Adressing

Unmet Medical Need

Riociguat – A New Mode of Action


Pulmonary hypertension (PH) is associated with endothelial dysfunction, impaired synthesis of nitric oxide (NO) and insufficient stimulation of the NO-sGC-cGMPpathway

Riociguat targets sGC to increase production of cGMP Stimulates native form of sGC

directly (independently of NO) Activity unaffected by depleted

NO levels Makes sGC more sensitive to the

body‘s own residual / existing NO

Vasodilatation

Nitric Oxide (NO)

Riociguat

sGC

cGMP↑

sGC: Soluble guanylate cyclase; cGMP: cyclic guanosine monophosphate

Forms and Epidemiology of Pulmonary Hypertension


CTEPH~20,000

PH owing to lung disease~410,0002

~30,000

PH-LVD~240,000

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 with ~300,000 patients thereof being potentially eligible for PH treatment

1Diagnoses estimated in 2009 in US, EU5, J; 2Thereof ~ <20% could be treated for PH

CTEPH: Chronic thromboembolic pulmonary hypertension LVD: left ventricular disease

PAH

Riociguat – Demonstrated Efficacy in PAH and CTEPH


Phase III trials in two forms of pulmonary hypertension, PAH & CTEPH, reported at CHEST in October 2012

Both trials met the primary efficacy endpoint (6MWDT) PATENT-1: +36m from baseline after 12 weeks compared with placebo

(p<0.0001) in patients with PAH

CHEST-1: +46m from baseline after 16 weeks compared with placebo (p<0.0001) in patients with CTEPH

Significant improvement observed in relevant secondary endpoints

First interim analysis of CHEST-2 showed further increase in 6MWD to 63 meters in former Riociguat patients and 35 meters in former placebo patients compared with CHEST-1 baseline.

Filed in PAH and CTEPH in US and EU (Feb 2013)

6MWDT: 6 Minutes walking distance test , CTEPH: chronic thromboembolic pulmonary hypertension, PAH: pulmonary arterial hypertension, sGC soluble guanylate cyclase

Peak sales potential > €500m


Additional Promising Pipeline Projects

Development Pipeline

• Bayer Investor Presentation • Meet Management • March 2013Page 72Selection of major Pharma Pipeline Projects in clinicial Phase I to III

* combined Phase II/III

Phase I (11) Phase II (8) Phase III (14)CancerBAY 1000394(CDK-Inhibitor)

Heart FailureBAY 1067197(Part. Aden. A1 Agonist)

CHFBAY 94-8862(MR Antagonist)

Additional IndicationsSorafenib

Submental fat removalSodium Deoxycholate(ATX-101)

Thyroid CancerSorafenib

CancerBAY 94-9343(Mesothelin-ADC)

Heart FailureBAY 86-8050(Vasopr. Rec. Antag.)

CancerRefametinib(MEK-Inhibitor)

Gram-negative PneumoniaAmikacin inhale

Skin and Lung InfectionsTedizolid

Breast CancerSorafenib

AnemiaBAY 85-3934(HIF-PH)

Heart FailureBAY 1021189(sGC Stimulator)

Cancer BAY 80-6946(PI3K Inhibitor)

Pulmonary HypertensionRiociguat (sGC Stimulator)

HemophiliaBAY 94-9027(peg rFVIII)

Adjuvant HCCSorafenib

Sympt. Uterine FibroidsBAY 1002670 (S-PRAnt)

EndometriosisBAY 1026153

CancerRadium-223-Dichlorid

HemophiliaBAY 86-6150*(rFVIIa)

Adjuvant RCCSorafenib

BronchiectiasisBAY 85-8501Neutroph. Elastase Inhibit.

CancerBAY 1082439PI3K Inhibitor

CancerRegorafenib

Myopic CNVAflibercept

VV Atrophy Prasterone(Vaginorm)

CancerBAY 2010112PSMA BiTE Antibody

DMEAflibercept

ContraceptionLCS 16

MACE preventionRivaroxaban

Lung InfectionCipro inhale

New molecular entities(NME)

Life cycle management(LCM)

Status as of February 2013

Expanding the Hemophilia Franchise With a Long-Acting Recombinant Factor VIII


B-domain–deleted recombinant factor VIII (BDD-rFVIII) with site-specific PEGylation (BAY 94-9027)

Attachment of PEG extends half-life without reducing FVIII activity

Phase I data showed

prolonged half-life vs. Kogenate FS

BAY 94-9027 was well tolerated

A combined phase II/III study started in summer 2012

rFVIIa (Bay 86-6150) is a Potential Molecule to Expand Beyond Hemophilia A


Recombinant factor VIIadesigned to increase circulating half-life and platelet affinity without modification of the active site

BAY 86-6150 is developed as a new treatment option for Hemophilia A and B patients with inhibitors

Phase I successfully completed

Combined Phase II/III study started 2012

Refametinib (BAY 86-9766) – A MEK-Inhibitor in Phase II in Cancer


Ras-Raf-MEK-ERK pathway: cascade of MAPK (Mitogen-activated protein kinases) - originally called ERK (extracellular signal-regulated kinases); AKT: is a protein kinase that plays a key role in multiple cellular processes, mTOR: mammalian target of rapamycin – a kinase; HCC: Hepatocellularcarcinoma; Puehler F. et al, Meeting of the EORTC-NCI-AACR, Poster 108. November 2010, Berlin, Germany

● Refametinib is currently in Phase II for pancreatic and liver cancer

● Ras-Raf-MEK-ERK pathway is one of the main pathways deregulated in cancer:

● Controls cellular proliferation, differentiation, apoptosis and migration

● Rationale to use in combination with other pathway inhibitors, e.g. sorafenib, PI3K-, AKT-, mTORinhibitors

BAY 80-6946 – A PI3K-Inhibitor in Phase II in Cancer


RTK: receptor tyrosine kinase; GPCR: G-protein coupled receptor;; PI3K:phospharidylinositol-3 kinase; Liu N et al, Annual Meeting of the American Association for Cancer Research. Poster 4476, April, 2010, Washington DC

● BAY 80-6946 is a pan class I PI3K-inhibitor

● Currently in phase II for non-Hodkin’slymphoma

● PI3 kinases signal downstream of most growth factor RTKs, where inhibitors do exist

● In most tumor cells, the PI3K-signaling cascade is activated and provides important tumor growth and survival signals

● Broad anti-tumor spectrum in preclinical tumors models

● Preclinical data support combination with MEK-inhibitor

MR Antagonist (BAY 94-8862) – Progressing in the Clinical Program


● BAY 94-8862 is a novel non-steroidal, potent and selective next generation MR antagonist

● Two steroidal MR antagonists (Spironolactone and Eplerenone) are approved for treating heart failure

● BAY 94-8862 efficacy and selectivity vshormone receptors as well as its balance between cardiac and renal efficacy is expected to result in an improved benefit-risk profile

● BAY 94-8862 is currently in Phase II for chronic heart failure and chronic kidney disease

● Phase IIa data planned for presentation at a scientific meeting in 2013

and injury

BAY 94-8862

MR-Signaling

Potassiumloss

Hypertension

Vascularinflammationand Injury

Sodiumretention

Myocardial/ Renal Fibrosis

CardiorenalDisease

MR: mineralocorticoid receptor

Expected Major Pipeline Newsflow 2013


Pipeline Project

Newsflow Timeframe

Xarelto Regulatory decision on secondary prevention of ACS (EU) 1H 2013e

Eylea Phase III study in mCNV (MYRROR) Data expected 1H 2013

Phase III study in DME (VIVID-DME) Data expected 2H 2013


Initiation of additional clinical studies 2013e

Regulatory decision mCRPC US 2H 2013e

Regulatory decision mCRPC EU End 2013e / early 2014

Riociguat Update on potential next steps in the development program 1H 2013e

Nexavar Phase III breast cancer (RESILIENCE) Data expected Q1 2014

Regorafenib Regulatory decision mCRC EU 1H 2013e

Filing mGIST EU 1H 2013e

Initiation of phase III in CRC (after resection of liver mets) 2H 2013e

BAY 94-9027 Phase III study in hemophilia A Data expected early 2014


Global Leader in Consumer Health

Consumer Care –Gained Share in 2012


Global #2 with a portfolio of some of the world’s most recognized brands

Track record of performance

Continued market share gains

Highlights

Sales in € million; ∆% Fx & portfolio adj.

3,020 3,0803,371

3,5343,853

2008 2009 2010 2011 2012

+6%

Consumer Care –Multiple Brands with ≥ €100m Sales

• Bayer Investor Presentation • Meet Management • March 2013Page 81* Only Aspirin CC sales, excluding Rx Aspirin Cardio

494*

323

269

250

196

146

+1%

+5%

+14%

+8%

+4%

+3%

130 +8%

122 +5%

101 +8%Redoxon100 +8%


Consumer Care – Aspire to Become #1 in Over-The-Counter Business


Leverage opportunities for all divisions across Bayer HealthCare platforms

Establish functional excellence in commercial organization

Fully maximize the potential of leading brands

Build a winning future portfolio

Improve position in emerging markets

Capture advantages

of our multidiv-isional setup

Invest in innovation

Open for bolt-on acquisitions and licensing

Major Brands Have Further Penetration Opportunities


Bepanthen

~ 75% Europe~75%

US

Aleve

~80%

Americas

Alka-Seltzer

Regional sales distribution FY 2012

Animal Health –A Top Player in an Attractive Market



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

Highlights963 977

1,1201,186

1,303

2008 2009 2010 2011 2012

+4%

Animal Health – Rich Portfolio of Companion and Food Animal Products


Food Animal

Products

~40%

Companion Animal

Products

~60%

● Leading portfolio of endo- and ectoparasticides

● Complemented by a range of products including pharmacologicals, antibiotics etc.

Sales 2012 by segment

● Leading portfolio of endo- and ectoparasticides

● Rich portfolio further includes antibiotics, nutraceuticals, joint health products etc.

Animal Health – New Products to Strengthen Business

Pradofloxacin, the new generation fluoroquinolone Extended spectrum vs. previous fluoroquinolones Greater potential to limit selection for resistance Convenient formulations for both dogs and cats

1st combined endoparasiticide against roundworm and coccidia in dogs Easy and convenient single oral dose treatment Can be used already from 2 weeks of age Complements the endoparasiticides portfolio based on the active

ingredient emodepside

Seresto The new benchmark for flea and tick protection Outstanding efficacy based on combination of active ingredients Up to 8 months protection thanks to innovative polymer matrix technology Launch in EU 2012 / US January 2013, launch in further countries planned

for 2013

Veraflox

Procox


Radiology & Interventional – Combining Medrad and Diagnostic Imaging


Medrad: Clear #1 Active in fluid injection systems for

contrast media and endovascular devices Business strengthened around strategic

core through adjacent acquisitions of Possis (thrombectomy) and Pathway (mechanical atherectomy)

Diagnostic Imaging: Clear market leader in contrast media

Synergy creation – similar centers/physicians

Highlights

1,323 1,3631,474 1,498

1,606

2008 2009 2010 2011 2012


* pro forma sales

+1%

Diabetes Care –Global Player in Blood Glucose Meters


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

Highlights


9561,000 993 1,002

1,047

2008 2009 2010 2011 2012

+4%

Investor Handout – Meet ManagementBayer CropScience


Crop Protection Saves Harvests and Boosts Yields


Committed to food security with focus on innovative, integrated and sustainable crop solutions to secure harvests and to increase yields

SeedGrowth solutions to give crops the right start

Herbicides to manage weeds and overcome resistance issues

Insecticides to control biting and sucking pests and help farmers reduce harvest losses

Fungicides to prevent the infection of crops by fungal diseases

Biologics for integrated pest and disease management

Seeds Lay the Foundation for a Successful Planting Season


Protect harvests against weeds, insects, diseases and stresses like drought and heat

Enhance yields to boost productivity and sustainability

Improve the quality and characteristics of harvested crops to meet the needs from seed to shelf; e.g. cotton fibers with better fiber properties

High quality seeds and traits can deliver solutions to farmers that will help them to:

Environmental Science Offers a Better Quality of Life


Bayer Garden / Advanced for the do-it-yourself gardener and home owner

Our Green Industry business which provides solutions for the public and private park and forestry sector

Professional Pest Management to help safeguard and guarantee hygiene

Vector Control which contributes to protect human health

Our products and services help to control pests and weeds and to solve health and hygiene issues with:

Leading the Way in Sustainable Crop Solutions

Sustainable Crop Solutions

Chemical Crop

Protection

BiologicalCrop

Protection

Seeds

Herbicides Fungicides Insecticides SeedGrowth

Microorganisms Microbial

extracts

Canola, cotton, rice, soy, wheat, vegetables

Conventionalseeds

GMO seeds Traits

Weed, pest & disease control

Resistance management

Better harvestwith improved: Yield Quality Processability Sustainability

GMO: Genetically modified organism• Bayer Investor Presentation • Meet Management • March 2013Page 93

Sales 2012: €8,383m

Insecticides€1,514mMarket position:

Fungicides€1,974m3Market position:

SeedGrowth€897m1Market position:

Herbicides €2,356m4Market position:

Env. Science €680m1Market position:

Seeds €962m7Market position:

Page 94

CropScience –A Leader in Chemical Crop Protection


1

Market positions based on company reportings and Cropnosis estimates

18%

24%

11%11%

8%

28%

26%

22%13%

9%

9%

7%6%

5% Fruits & Vegetables

CerealsOilseeds

Soy

Corn

Cotton

Rice

Sugar Crops

* by major crop groups excluding industrial business and non-agricultural solutions

CropScience Sales 2012*

Other

Fruits, Vegetables and Cereals –A Major Part of Our Portfolio



2012 – Excellent Performance in Positive Environment

Full Year 2012 –Excellent Performance




+9% (+5%)



CropScience €8,383m; +16% (+12%)

Price+1%

Volume+12%

Fx+4%

Portfolio-1%

6,741

FY‘11 FY‘12 FY‘11 FY‘12

1,654

2,008+21%

1,168

1,526+31%

Adj.EBITDA*

Adj.EBIT*

680962

Seeds+17% (+14%)

Herbicides

Fungicides

Seeds

Growth in all regions, especially in the US (new corn herbicides) and Brazil

Double-digit growth in several key markets (e.g with Fox in Brazil)

Growth in all regions; phase-out of WHO Class I products completed

Strong business expansion; high demand for innovative Poncho/Votivo

Double-digit growth in broad-acre crops; slight decline with vegetable seeds

Products both for professional users and consumers posting gains

2,356+10%

1,974+13%

1,514+15%

897+17%

680+5%

962+14%

Insecticides

Sales in € million; ∆% y-o-y Fx & portfolio adj.

FY 2011 Nominal growth FY 2012

Page 98 • Bayer Investor Presentation • Meet Management • March 2013

SeedGrowth

Env.Science

Full Year 2012 –All Segments Contributing to Growth

High demand for InVigor in Canada; launch of conventional oilseed rapein Europe

Expansion of cotton seed business driven by US and Brazil

Growing rice seed business in Asia(esp. India)

About 70 new vegetable seed varietieslaunched

Successful launch of Bayer soybean seed in the US

Build-up of global wheat seed business continued with new research cooperations


299 304

227311

17919940

47

2011 2012

820

962

Sales in € million; ∆% y-o-y, () Fx & portfolio adj.

2012 Highlights

Vegetables (-2%)

Rice (+23%)

Oilseeds (+33%)

Soybean (+83%)

Cotton (+10%)

Other+14%

Seeds – Double-Digit Growth in All Our Broad Acre Crops in 2012

Emerging Economies

25%

CropScience Sales in FY 2012

CropScience €8,383m; +16% (+12%)Latin

AmericaEastern Europe


Emerging Asia³

~900

+7%

~1,800

+15%

~600

+16%

~300

+7%


² Others = Japan, Australia, New Zealand, Canada³ Emerging Asia = Asia without Japan, Australia, New Zealand

18%

USA+19%

25%

43%

14%


Western Europe +5%

Others²+13%

Full Year 2012 –Growth in All RegionsSales in € million, ∆% yoy Fx adjusted



Executing our Strategic Roadmap

Executing Our Strategic Roadmap

Strengthen Customer Centricity

Lead the Way in Innovation

Enhance Crop Protection

Striving for first- and best-in-class solutions

Exploiting expertise in seeds, breeding, and chemical and biological crop protection

Driving commercial excellence in marketing and sales

Connecting partners in the value chain through integrated Go-to-Market practices

Improving portfolio through focused and integrated crop solutions

Increasing flexibility and efficiency

ExpandSeeds Business

Further strengthening position in vegetables, rice, oilseed rapeand cotton

Extending portfolioby building up business in soybean and wheat


Translate R&D Effectively into New Product Sales


Xpro (+61%) - New cereal fungicide with yield-boosting effect

Adengo herbicide family (+85%) -Excellent weed control in corn and cereals, also in case of glyphosate resistance

Belt (+54%) - Broad-spectrum insecticide with fast and long-lasting action

Launch of Luna fungicide in the US

First launch of new SeedGrowth family EverGol/Emesto in Canada

0.02

0.3

0.7

1.1

~1.4

~1.9

2007 2009 2011 2012 2013e 2015e

+60%

2012 HighlightsSales from new Crop Protection products launched since 2006 in € bn∆% y-o-y, () Fx adj.

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

* SDHI: Succinate dehydrogenase inhibitorPage 104 • Bayer Investor Presentation • Meet Management • March 2013

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 industry 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

* SDHI: Succinate dehydrogenase inhibitor• Bayer Investor Presentation • Meet Management • March 2013Page 105

We Are The Company to Offer a Sustainable Alternative to Glyphosate to Fight Weed Resistance


Bayer CropSciencesustains the "Respect the Rotation" initiative to overcome weed management challenges

HPPD: Hydroxyphenyl-pyruvate dioxygenaseMGI: Mesotrione, Glufosinate-ammonium and Isoxaflutole

Weed resistance to glyphosate increasingly impacting crop production

Our LibertyLink is currently the only non-selective herbicide solution to glyphosate resistant weeds

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

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 $425m (~€340m) plus 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 sustainable crop solutions


Customer Centricity Along the Entire Value Chain


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

Bayer CropScience

Our offers GrowersDis

trib

utor

s /

seed

com

pani

es

Ret

aile

rs

Adv

isor

s

Providing Seed-to-Shelf Solutions

Trad

ers

Food

pro

cess

ors

Food

reta

ilers

Consumers

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" SeedGrowth system with a global network of 10 Seed Treatment Application Centers

2012 SeedGrowth sales* +17% Further roll-out of SeedGrowth franchise

in Asia Pacific (sales in China* +30%)Combine innovative technology of Moventoinsecticide 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

* Sales ∆% y-o-y Fx adj.

Unique combination of Seeds, Small Molecules and Biologics in R&D Operations


Commercial deployment

Combining state-of the art techniquesIntegrated approach

Regulatory excellence

Collaboration with best-in-class organizations

Traits• Agronomic traits• Germplasm• Biotech

• Bacteria• Naturals

Biologics

Seeds

BiologicsSmallMolecules

Breeding

• Insecticides• Fungicides• Herbicides

Chemicals

• Computational life science

• Phenotyping, field trials• Genome sequencing • Gene expression

• Genes of interest• Specific molecular targets

• Marker assisted breeding• Trait selection chemistry• Microbial strain collection Integrated plant

health solution

Next generationproduct

Commercial deployment

Pipeline Peak Sales Potential €4bn from Products Launched 2011 - 2016*


Crop Protection (excl. Biologics)

Cotton

Canola

Wheat

BiologicsSeeds & Vegetables

Soybean

Rice

2011

Fungicide

Herbicide

SeedGrowth**

GlyTol Cotton

Seed Varieties~80 launches in vegetables & broad acre crops

2012

~ 100 launches in vegetables & broad acre crops

Bayer Oilseed Rape Seed

Fungicide

Bayer Soybean Seed

SeedGrowth**

Seed Varieties

2013

~110 launches in vegetables & broadacre crops

Roundup Ready HybridCanola

SeedGrowth** / Fung.B. Subtilis

FungicideOPTIVA

Bayer Oilseed Mustard Hybrids

Seed Varieties

2014

Canola Yield Increase

Numerous launches in vegetables & broad acre crops

SivantoInsecticide

New Bayer BrandInsecticide

Insect Resistant Hybrid Rice

TwinLink + GlyTol Cotton

Seed Varieties

2016

Disease Res. + Salinity Tol. Hybrid Rice

Insect + Disease Res. Hybrid Rice

Improved Canola Oil Profile

Dual Herb. Tol. + Novel Ins. Res. Cotton

Fungi- / Bactericide

Serenade AEW

Seed VarietiesNumerous launches in vegetables & broad acre crops

2015

LibertyLink + R. Ready Hybrid Canola

Biologics Fungicide

Biologics Fungi- / Bactericide

TriafamoneHerbicide

GlyTol + HPPD Tolerant Soybeans

Bayer Wheat Seed

BiologicsInsecticide

Disease Res. + Submerge. Tol. Hybrid Rice

Seed VarietiesNumerous launches in vegetables & broad acre crops

BiologicsInsecticide

*Estimated and subject to regulatory approval**Formerly called Seed Treatment

Sivanto – Innovative and User-friendly Broad-spectrum Insecticide

Active ingredient: flupyradifurone

Control of sucking pests such as aphids, cicadas and whiteflies

Intended primarily for fruit and vegetables, but also for broad acre crops

Improved environmental profile

Launch planned 2014 / 2015


2010 2011 2012 2016e

Crop Protection/Environmental ScienceSeeds

Increasing the R&D Share for Seeds


In € million

Seeds Fungicides BiologicsInsecticides SeedGrowth Herbicides

~1,200

~800~600

~500

~500

~400

Pipeline Peak Sales Potential €4bn from Products Launched 2011 – 2016*.

* Estimated and subject to regulatory approval

63%

37%35%

65%70%

30%

722 723 782

Pipeline Value by SegmentR&D Split

Sales in € million; ∆% y-o-y Fx & portfolio adj.

820962

2011 2012 2015e

Aspiring Double-Digit Seeds Growth p.a.


+14%

Double-digit % CAGR expected

Market leading positions in chosen crops: #1 in canola #1 in cotton #1 in hybrid rice #4-5 in vegetables

Strategy to develop soybean and wheat business in place

Increase R&D investment

Complement business expansion through bolt-on acquisitions

Extending the Seed Footprint

TwinLink + GlyTolin cotton

Build up a global wheatseed business

Building a proprietarysoybean seed business

First dual herbicide – dual insecticide product

Two genes for effectiveinsect control

Herbicide tolerance forglufosinate and glyphosate

Applied in high-yieldingFibermax and Stonevillecotton varieties

Anticipated launch in 2014

Significant investment intoR&D of new wheat varietiesand traits

Focus on productivity, stress tolerance, nutrient uptake

Establishing a broadgermplasm pool

Global breading network First new varieties expected

by 2015 in Europe

LibertyLink herbicidetolerance technologybroadly outlicensed

Acquisition of HornbeckSeed Company in the US

Bayer soybean seedlaunched in 2012

Broad germplasm pool andpromising trait pipeline


Significant Investments in Seeds Since 2011

Targeted acquisitions to strengthen core crops

Hornbeck Seed - to invest in southern US soybean seed market

Raps GbR - to strengthen oilseed rape business in Europe

Abbott & Cobb – significant step forward in US watermelon market

Germplasm assets of ProSoy Genetics, US – well adapted to the broad Midwest growing region

Wheat breeding stations set-up in Europe, US, Australia

Several agreements with wheat players to broaden access to germplasm

Around 90 research collaborations with partners in the public and private sector

R&D investment increased by ~15% in 2012 to ~€300m


Strategic Progress Achieved

EnhanceCrop Protection

Strengthen Customer Centricity

Lead the Way in Innovation

Expand Seeds Business

● €1.1bn sales in 2012 with products launched since 2006● All WHO class I insecticides removed from our portfolio● Expansion of Biologics

● Increased grower orientation ● Improved channel management practices● Broadened food chain partnership business model

● Pipeline Peak Sales Potential* €4bn● Increased investment in Seeds R&D● Innovating at the interface between chemistry and biology

● Strengthened positions in cotton, canola and rice● Increased investments in soybean, wheat and vegetables● Development of innovative traits

• Bayer Investor Presentation • Meet Management • March 2013Page 117* from products launched between 2011-2016


Positive Outlook

Crop Commodity Prices Volatile, But Still at Attractive Levels

• Bayer Investor Presentation • Meet Management • March 2013Page 119Source: Bloomberg

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

0

100

200

300

400

500

600

700

800

900

1,000

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13

Soybean (LS) Corn (LS) Wheat (LS) Canola (LS) Rice (RS) Cotton (RS)Right scale (RS); Left scale (LS)

USD/ton USD/ton

Seeds and Crop Protection Markets Expected to Grow 5% in 2013


Market environment expected to remain positive, though volatile

Attractive crop commodity price levels predicted at least for 1H 2013

Latin America: strongest market growth due to increasing soybean acreage

Asia / Pacific: cereals, rice and specialty crops fueling market growth

Eastern Europe: Above-average growth potential

Industrialized regions of the northern hemisphere: market expansion, but much more slowly than in 2012


CropScience – Above Market Growth at Benchmark Profitability


Aspiration 2015

Above-market sales growth +12.4% to €8.4bn

high-single digit %

towards €9bn


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% slight improvement ~24%


double-digit % growth p.a.

CP: Crop Protection*Assuming Fx rate of $1.29 per €


double-digit % growth

050

100150200250300350400450500

2012 2013e 2014e 2015e

Building up capacity for top Crop Protection brands including our herbicide Liberty/Basta and ourfungicide product families Nativoand Prosaro

Expanding the infrastructure for our Seeds business (breeding stations, greenhouses and seed processing facilities)

Expanding and modernizing R&D facilities (RTP/USA, Davis/USA, Monheim/Germany)

We are Ensuring a World-Class Product Supply by Further Investing


Capital Expenditures (PPE only, in €m)

Investor Handout – Meet ManagementBayer MaterialScience


MaterialScience –Operating in Attractive Markets


Market Positioning Financial Performance Business Perspectives

2012 volume growth in line with global real GDP development

Capital return below cost of capital, burdened by high investments

History of cash generation in excess of own investment needs

Global megatrends driving growth

Target to grow volumes above GDP

Closely monitor timing and necessity of capacity expansions

Earn a premium over Cost of Capital

Leading positions (#1/2) in all business segments

Operating a state-of-the-art global production network

Maintaining close customer relationships

A leader in process technology / sustainability


Market Positioning

MaterialScience –Leading Positions in All Segments

• Bayer Investor Presentation • Meet Management • March 2013*depending on segment

** aliph. isocyanates

MaterialScience €11,503m

Polyurethanes€5,995m #1-2; approx. 20-24% market share*

52%6%

25%

17%

Sales in € million

Polycarbonates€2,823m #1; approx. 27% market share

Coatings, Adhesives, Specialties€1,972m #1; >40% market share**

Industrial Operations €713m

Sales Split by Segment 2012

Page 126

MaterialScience –Sales By Key Customer Industries


Others(sports, leisure, footwear packaging, medical, etc.)

Furniture / Wood

AutomotiveChemicals

Electro/Electronics

Construction17%

28%

19%

20%

8%20%

16%

Bayer MaterialScience sales by industry in 2012

Page 127

A Global Leader in its Markets Operating a Worldwide State-of-the-Art Plant Network


HeadquartersMajor Production SitesDownstream Businesses

Position*

Americas

# 1 # 2 # 1 PUR PCS CAS

Position*

EMEA#

*Market share based on estimated sales following self-assessment# Europe, Middle East & Africa

# 1 # 1 # 1 PUR PCS CAS

Position*

Asia/Pacific

# 2-3 # 1-2 # 1 PUR PCS CAS

Bayer´s Largest, Fully Integrated Polymer Site, Constructed in Shanghai


Leadership Strengthened Through Local Production and Know-how

Existing Capacities

CAS – HDI30 kt

PUR – MDI350 kt

PUR – TDI250 kt

PCS200 kt

CAS: coatings, adhesives & specialties; HDI: hexamethylenediisocyanate; MDI: methyl diphenylene diisocyanate; TDI: toluene

diisocyanate; PCS: polycarbonate; PUR: polyurethanes

Integrated production site for polycarbonate, polyurethanes and coating raw materials

>€2bn invested in greenfield project All production lines in world-scale format Excellent infrastructure and customer

proximity State-of-the-art technologies lead to:

Lower conversion costs Energy savings

Further Expansion Planned

A Leader in Process Technology & Sustainability


Proc

ess

Ben

efits

*St

atus

TDI Gas Phase Phosgenation

Adiabatic Aniline Production

ODC Technology for Chlorine Production

*Compared with conventional technologyODC: Oxygen depolarized cathode

Uses up to 60% lessenergy

Requires 80% less solvent

CapEx reduced by 20%

Uses 25% less energy

20% less CO2 emissions

CapEx reduced by 30%

Uses 30% less energy

Reduces indirect CO2emissions

World-scale facilitysince 2011 in Shanghai, China

Technology to be used in new TDI plant in Dormagen

Pilot plant in Antwerp, Belgium

Plant in Shanghai since 2010

Demo facility in Krefeld-Uerdingen

External marketing planned from 2013

Page 130


Financial Performance


Full Year 2012 –Operating Performance

25%5,995

2,823

Polycarbonates -2% (-7%)


2011 2012

AdjustedEBITDA*

1,1711,251

* before special items

2011 2012

AdjustedEBIT*

589 629

+7%

+7%

2012 Sales Earnings

1,972713

Sales in € million; ∆% y-o-y, () Fx & portfolio adj.

Coatings, Adhesives, Specialties +3% (+4%)

IndustrialOperations+8% (+6%)

Price1%

Volume+2%

Fx+4%

Portfolio-1%


Page 132

Full Year 2012 –Regional Sales Development


Emerging Economies2012 MaterialScience Sales

MaterialScience €11,503m; +2%Latin

AmericaEastern Europe


Emerging Asia³

~2,760

+1%

~930

+15%

~680

+7%

~575

-5%


² Others = Japan, Australia, New Zealand, Canada³ Emerging Asia = Asia without Japan, Australia, New Zealand

USA+7%

36%

Western Europe -1%

42%


4%Others²+2%


20%

32%

43%

5%

Page 133


Full Year 2012 –Impact of Raw Materials

Petrochemical feedstock prices on a record level

Total raw material costs at ~€5.7bn in 2012, vs ~€5.1bn in 2011

Energy costs at ~€0.5bn in 2012, down ~€0.1bn vs 2011

Raw material price increases only partly compensated by higher selling prices

Raw Material Cost Split 2012*

Exposure by valueBenzene (incl. phenol, aniline, styrene)ToluenePropyleneOther petrochemical feedstockOthers

* MaterialScience raw material basket used as proxy, coversapprox. 80% of total purchased raw materials

Cash Generation in Excess of Own Investment Need

• Bayer Investor Presentation • Meet Management • March 20132002 and 2003 as reported in 2004 excluding acquisitions or divestments

In € million

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

902

1,108

464

1,113

332

498

715

1,388

690

1,281

870

672

1,147

782

504 498565

775763849

Page 135

620739

CapEx (cash-relevant)

Net Cash Flow

~€3.6bn Free Operating Cash Flow in 11 years Free Operating Cash Flow

206 649

166

673592

277

110345

265 210 119


Business Perspectives



Higher Asset Utilization & Efficiency Measures Are Driving Performance

2012 Target 2013 Aspiration 2015

Sales +3.0% to €11.5bn (volumes +2%)

Adj. EBITDA +7% to €1,251m

CFROI# 5.6% < WACC 7.1%

Sales to slightly increase to ~€12bn

Adj. EBITDA to further improve

Q1‘2013 vs Q4‘2012: Sales to further increase and adj. EBITDA at same level

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

*Assuming Fx rate of $1.29 per €#after reproduction



Outlook 2013 –Economy and Key Customer Industries

20%

17%

28%

19%

Automotive(+2%)

Electro /Electronic

(+5%)

Construction(+4%)

Furniture(+5%)

Others(incl. Chemicals)

2.5

0.1 0.4

1.7

5.1

4

3

2

1

5

GDP growth % prev. year

16%

*Assuming Fx rate of $1.29 per €Outlook depends on specific planning assumptions as detailed in the Annual Report

Sales by industry 2012 and expected 2013 growth

Global Economic GDP Outlook Key Customer Industries Outlook


Approaching industry capacityutilization rates around 90*

Approaching industry capacityutilization rates in the high 80’s

Approaching industry capacityutilization rates in the high 80’s

= nameplate market capacities based on CMAI data, public competitor announcements and internal Bayer estimates

* adjusted for non available capacities

PCS Supply MDI SupplyTDI Supply

Demand > Supply~6-7% p.a ~5-6% p.a.

Demand > Supply~4% p.a ~1-2% p.a.

Demand > Supply~6% p.a ~3-4% p.a.

1,100500

2012 2015e

5,900

~7,000

2012 2015e

2,400 ~2,500100

2012 2015e

4,800~5,300

Demand / Supply Balance in the Industry Expected to ImproveSupply in kt p.a.


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

Two Major Projects to Optimize Plant Structure in Germany


Replacement of existing 205 kt TDI capacities by new world-scale 300 kt plant using innovative gas-phase phosgenation process by 2014

MDI: methyl diphenylene diisocyanate, TDI: toluene diisocyanatePage 141

TDI Dormagen

After finishing the TDI project, conversion of existing TDI facility in Brunsbüttel into MDI plant, incorporating adiabatic aniline process innovation

New site will become a world-scale plant

MDI Brunsbüttel

MaterialScience as an Integrated Solution Provider


Megatrends offer business opportunities worldwide, with the emerging economies at the forefront

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 carsNew energy vehicle

development High-speed rail trans-

portation networks

EcoConstruction with high thermal insulation

standardsCold-chain efficiency

Over 40m people enter the middle class

every yearImproved housing

standards

Source: Steria, The Future Report 2012


Our High-tech Materials Meet Key Customer Industry Needs

Poly-carbonates

Poly-urethanes

& CAS

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

AutomotiveConstruction Electro / Electronics

CAS: Coatings, Adhesives, Specialties

Polyurethane-based Insulation for Residential & Commercial Buildings


PUR Isoboards for Thermal Insulation

Growth drivers EU: From 2020 on, new

buildings have to be constructed as “nearly zero-energy 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

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 144

Polycarbonate Sheets for Heat Management in Buildings


Combined light and heat management to reduce energy requirements

Significant reduction of CO2 emissions

Integration of solar energy panels

Good weather stability

Advantages over glass: Design freedom, safety, weight

Growing demand for non-electrical indoor climate control

Translucency levels of 65-85%, ensure the maximum amount of daylight inside buildings

Makrolon® meets international fire protection requirements (not self-igniting)

Global market size 2012: approx. 320 kt* (complete roofing market), estimated average growth rate of ~4% p.a.

Polycarbonate Multi-Wall Sheets

Growth drivers

Page 145* Internal estimate


Polyurethane-based Insulation in Cold Chain

Growth drivers Globally more stringent energy

saving regulations Increasing demand for trans-

porting 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.

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%

PUR: polyurethane

Examples of Bayer´s Materials for Energy Efficient Cars


Load floor out ofpolyurethanes

Polycarbonate tailgate

Roof elements out of polycarbonate and polyurethanes

Seats out of polyurethanes

Instrument panels out of polycarbonate and polyurethanes

Colored polycarbonate parts for the body

Polycarbonate for flame resistant battery housings

Polyurethanes, coatings and adhesives for the body shell

Housings for chargingstations out of polycarbonate

MaterialScience´s Solutions for Saving Weight

* Based on an average automotive weight of 1,300 kgPage 147

10% less weight

5% less fuel*

=

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 6tPage 148

meet management 2013 investor handout

Investor Relations