meet management 2015 in new york investor handout

Meet Management New York 2015

Disclaimer

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.

The New Bayer Transforming into a pure Life Science

company

Marijn Dekkers, CEO

• Bayer Investor Presentation • Meet Management • June 2015 Page 1


ǀ Transforming into a pure Life Science company and exiting MaterialScience

ǀ Executing a strategy of organic growth complemented by bolt-on acquisitions

ǀ Generating strong growth with new product innovations

ǀ Expecting important R&D pipeline progress during the next 12 – 18 months

ǀ Targeting low single-digit % organic growth and high-teens % improvement in

Core EPS in 2015

The New Bayer

Portfolio Transformation Will Focus

Business and Strengthen Life Sciences


Consumer Health

€7.9bn1)

CropScience €9.5bn

Crop Protection #2, Seeds &

Traits

Pharma €12.1bn Leading positions in core

therapeutic areas

A leader in OTC and contrast

media, blood glucose

meters #3/4, Animal Health #5

MaterialScience3) €11.7bn Polyurethanes #1/2, Polycarbonates #1,

Coatings, Adhesives, Specialties, #1

Diabetes Care3)

€0.9bn

Sales 2014

Merck & Co. OTC, Dihon,

€1.6bn pro-forma2)

1) includes €0.3bn from Merck & Co. in Q4 2014

2) FY 2014 pro-forma

3) pending

Sales

+5%

Core EPS

Track Record of Consistently Strong

Performance

• Bayer Investor Presentation • Meet Management • June 2015

36.5 35.1

2011 2010 2014 2012 2013

39.8 40.2

42.2

4.83 4.19

2011 2010 2014 2012 2013

5.35 5.61 6.02

CAGR 2010-2014

+9% CAGR 2010-2014

€ billion

€

EBIT

€ million

-5%

1,998 2,096

Sales € million

% currency & portfolio adj.

+3%

12,117

10,555

EBITDA before special items

€ million

+10%

3,000 2,738

Core EPS

€

+8%

2.10 1.95

Q1’15 Q1’14 Q1’15 Q1’14 Q1’15 Q1’14 Q1’15 Q1’14

Q1 2015 –

Strong Start to the Year


Q1 2015 – Full-Year Group Guidance Raised

Mainly Due to Fx

Page 6

2014 2015 original guidance

2015 Update (April)

Fx effect

Sales €42.2bn Low-single digit %

increase

~€46bn

Low-single digit %

increase

€48 - 49bn

~ +9%

EBITDA before special

items

€8.8bn Low-to-mid-teens %

increase

High-teens %

increase ~ +8%

Core EPS €6.02 Low-teens %

increase

High-teens %

increase ~ +7%

Sales Δ% Fx and portfolio adj.

Assuming spot Fx rates as of March 31, 2015 for rest of the year

Outlook depends on specific planning assumptions outlined in the Annual Report • Bayer Investor Presentation • Meet Management • June 2015

HealthCare Mid-single-digit % increase Low-twenties % increase (previously: mid-teens %)

Pharma Mid-to high-single-digit % increase Mid-teens % increase (previously: low-teens % increase)

Consumer

Health Mid-single-digit % increase

Mid-thirties % increase (previously: mid- to high-twenties %

increase)

CropScience Low-to mid-single-digit % increase Low-to mid-teens % (previously: low to mid-single digit %)

MaterialScience Lower sales, as volume growth is over

compensated by lower selling prices

Significant increase

CFROI ≥ WACC

Full Year 2015 –

Guidance by Subgroup (Q1 update)

Page 7

*Assuming spot Fx rates as of March 31, 2015 for rest of the year

Sales Δ% Fx & portf. adjusted, EBITDA before special items

Outlook depends on specific planning assumptions outlined in the Annual Report • Bayer Investor Presentation • Meet Management • June 2015

Sales * Adj. EBITDA *


4 Key Elements Constitute

Our Successful Strategy

The New Bayer

1. Deliver growth and performance

Fast-Growing Global Pharma Business

Page 10

€ billion; Δ% yoy Fx & portfolio adj.

Sales

10.0 9.9 10.8 11.2

12.1

3.2

2010 2011 2012 2013 2014 Q1 2015

+9%

Maximize the value of launch

products

Drive commercial excellence

in marketing and sales

Advance early and mid-stage

pipeline

Achieve phase III readiness for

key phase II assets by mid-2016

Explore opportunities for

partnerships, open innovation

and bolt-on acquisitions

Plans for

continued growth

+11%

+ 7 %


+1%

+4%

Pharma Launch Products Drive Growth:

Combined Peak Sales Potential of ≥€7.5bn

Page 11 • Bayer Investor Presentation • Meet Management • June 2015

Q1 2015 Individual Sales

482

71

253

€ million

38

54

Total

€898m

€ billion

2012 2013 2014 2015e

0.4

1.5

2.9

Collective Sales

> 4.0

Xarelto –

Leading Novel Anticoagulant

Sales € million; Δ% Fx adj.

Global Market Sales Share*

• Continued dynamic growth: gaining 5%-age points market share yoy

and 1%-age point sequentially since year end 2014

• ~13 million patients treated to date

• Comprehensive Life-cycle management program including peripheral artery disease and

chronic heart failure

Peak sales potential of ~€3.5bn reiterated

*Anticoagulant market, as of March 2015

322

949

1,679

482

2012 2013 2014 Q1 2015

+ 38%

33%

12% 13%

Xarelto Pradaxa Eliquis


Eylea –

Gaining Share in Key Markets

Page 13

• Successful roll-out, 2014 sales more than doubled

• Significant label expansion achieved. New indications approved: DME, mCNV and RVO

• Life-cycle management incl. combination therapy with PDGFR-β antibody**

Marketed by Bayer ex-US only

*Sales market share, March 2015

**in collaboration with Regeneron

Japan

55% 46%

2015* 2013

DME: Diabetic macula edema

mCNV: myopic Choroidal neovascularization

RVO retinal vein occlusion

14

333

759

253

2012 2013 2014 Q1 2015

+ 55 %

Sales € million; Δ% Fx adj.

Peak sales potential of ≥ €1.5bn reiterated


Europe 5 main countries + Switzerland

37%

22%

2015* 2013

Merck & Co. Consumer Care / Dihon

Leveraging Potential of OTC Leadership

Strong #2 position

Track record of outperforming

market growth

Success in long-term brand

building

Highly complementary

acquisitions, incl. Merck & Co.

Consumer Care

Globalize established brands

Launch innovation pipeline

Execute Emerging Markets

focus strategies

Fully realize synergy potential

from acquisitions

Target strategic acquisitions

and alliances


Plans for

continued growth Achievements Consumer Care Sales

€ billion; 2014 pro forma

2013 2014

€3.9

€5.6

http://www.masgrafx.com/masgrafxracing/images/jdownloads/screenshots/mgrfx_alkaseltzer.jpg

Q1 2015 – Consumer Care:

Generated Strong Growth

Page 15

36%

1,556


Sales

923

1,556*

Q1 2014 Q1 2015

+9%

+9%

+14%

+8%

Performance key brands Δ% yoy, Fx adj.

*including €495m from Merck

€ million; Δ% Fx & portfolio adj.

Delivering Strong Growth in CropScience

6.8 7.3

8.4 8.8

9.5

3.1

2010 2011 2012 2013 2014 Q1 2015

Strengthen portfolio through

focused and integrated crop

solutions

Drive commercial excellence

in marketing and sales

Drive new product growth,

invest in life-cycle management

Expand seeds portfolio by

building business in soybeans

and wheat

€ billion; Δ% Fx & portfolio adj.

Sales

Page 16

Plans for

continued growth

+1%


+11% +9%

+9%

+12%

New Products Drive Growth at

Crop Protection

Page 17

0.4

0.7

1.1

1.5

1.9

~2.8

2010 2011 2012 2013 2014 2017e

New products generated nearly 70% of

absolute sales growth at Crop Protection

€1.9bn

By segment € billion; new CP products launched since 2006; Δ% nominal

New product sales

+23%

Insecticides Herbicides

SeedGrowth Fungicides


2. Develop new growth opportunities

2%

MaterialScience

~€0.2bn

HealthCare ~€2.6bn thereof

Pharma

~€2.2bn

Reconciliation

~€0.1bn

66%

27%

5% CropScience

~€1.1bn


R&D 2015e: >€4.0bn +10% yoy

26 successful phase III clinical trials

at Pharma since 2010

Strengthened brands through

multiple line or product

introductions in Consumer Care

Launched 12 active ingredients

between 2006 and 2014 in

CropScience

Initiated R&D projects that leverage

synergies between human, animal

and plant health

Achievements

Confidence in Our R&D Investments

Pharma R&D Focus Areas

Cardiology /

Hematology

Oncology

Additional areas incl.

Ophthalmology

Research and Early

Pipeline

Damoctocog alfa pegol

ODM-201

Copanlisib

Finerenone

Vericiguat

Molidustat

Vilaprisan

ISIS-FXIRx

Xarelto (Rivaroxaban)

Eylea (Aflibercept)

Xofigo (Radium-223

dichloride)

Stivarga (Regorafenib)

Adempas (Riociguat)

Life-cycle

Management Mid- and Late-stage

Pipeline Projects



Mid- and Late-Stage Pharma Pipeline

Progressing – Current Timelines

CHF: Chronic heart failure; CRPC: Castration-resistant prostate cancer;

NHL: Non-Hodgkin‘s lymphoma; r/pEF: Reduced/preserved ejection fraction


Hemophilia A

ODM-201

CRPC

Copanlisib

Cancer; NHL

Finerenone

Worsening CHF

Diabetic nephropathy

Vericiguat

Worsening CHF rEF

Worsening CHF pEF

Molidustat

Renal anemia

Vilaprisan

Uterine fibroids

Endometriosis

Phase III (pediatric)

Phase III

Phase IIa

Phase III

Phase IIb

Phase IIb

Phase IIb

Phase IIb

Phase IIb

2016 2015 2014

Phase IIb

Phase IIb

Phase IIa

PH III decision

PH III decision

PH III decision

PH III decision

PH III decision

reported

CropScience Innovation Pipeline 2014-2019

with Combined Peak Sales Potential > €5bn


New launches Planned launches*

2014 2015 2016 2017 2018 2019 Verango/Velum

Nematicide

Sivanto

Insecticide

Disease control

New mixture /

formulation

Pest control

New active

ingredient

Weed control

New mixture /

formulation

Pest control

New active

ingredient

Flocter

Biological

nematicide

Council

Rice herbicide

Disease control

Country / label

extension

Disease control

Country / label

extension

Weed control

New mixture /

formulation

Disease control

New active

ingredient

FiberMax

GlyTol + TwinLink

cotton

Movento

Country / label

extension

Weed control

Country / label

extension

Weed control

Country / label

extension

Disease control

New mixture /

formulation

InVigor

Canola pod shatter

reduction

Alion

Country / label

extension

Oilseeds

Improved canola oil

profile

Cotton

Dual HT + IR

Soybeans

Triple HT

Arize

Bacterial Leaf

Blight resistant rice

Wheat

Non-hybrid wheat

seed (Ukraine)

Oilseeds

Dual HT canola

Oilseeds

Dual HT canola

Soybeans

Dual HT

Rice

Insect resistance +

disease resistance

Oilseeds

HT Ogura hybrid

Rice

Disease resistance

+ salinity tolerance

Rice

Disease tolerance

Rice

Disease resistance

+ submergence tol.

Soybeans

Dual HT

*subject to regulatory approval

**includes selected native traits

Major Life Cycle Innovation

Chemical Crop Protection

Biological Crop Protection

Seeds & Traits**

HT: Herbicide tolerance trait

IR: Insect resistance trait

More than 100 Life Cycle Management projects

Several hundred new varieties in vegetables and broad acre crops


Trend-setting Research in the Fields of

Human, Animal and Plant Health

Related challenges for human, animal and plant health* Potential for collaboration & synergies

Host-

microbe

interaction

Resistance

control

Unregulated

growth

*Examples

HealthCare

R&D

CropScience

R&D

Knowledge Platforms

(ie. genomics etc.)

Molecular Target

(ie. ion channels etc.)

Common Mechanisms

(ie. protein modification etc.)

Technology Platforms

(ie. HTS etc.)

Preclinical Evaluation

(ie. Toxicology etc.)

New Molecular Entities

(ie. NCE/NBE)

3. Execute Portfolio Transformation • Integrate acquired businesses

• Exit MaterialScience businesses

• Adjust Group structures to reflect Life Science

focus

Transforming Into a Pure Life Science Company

Transaction Volume >€48bn Since 2004*

2003 Sales €28.6bn

HealthCare

CropScience

MaterialScience

Chemicals

Major examples only

Pro-Forma 2014 Sales ~ €31bn

CropScience

HealthCare Divestitures

€12bn

Acquisitions

€36bn

Diagnostics

Plasma

Diabetes Care**

–

+

+

+

Merck & Co. Consumer Care

Dihon

Algeta

Conceptus

Steigerwald GmbH

Schering AG

Roche OTC

+

+

+

+

AgraQuest

Athenix

Stoneville Cotton Seed

Gustafson Seed Treatment +

+

+

+

Capital-market

exit planned

*Transaction volume: acquisitions/divestments 2004 – 2014

**pending

–

–

Lanxess spin-off

Bayer Silicones

–

–

–

–


HC Starck

Wolff Walsrode

Divested

Divested

–

Life Science Transformation on Track

Page 26

Exit of

Diabetes Care

Divestment for total

consideration of ~€1,022m

Closing expected in

Q1 2016

LS: Life Sciences

Demerger of

MaterialScience

Targeted time frame

for capital-market exit:

latest mid-2016

Timing, structure and

exit options depend

on market

environment;

decision 2H 2015e

Potential proceeds re-

invested in the

business/

reduction of net debt

Merck Consumer Care

Integration

Integration progressing

as planned

Synergy tracking and

integration teams in

place

Confirmed 2017

synergy targets:

• USD400m top-line

• USD200m cost-

synergies by 2017


4. Delever balance sheet and use

cash efficiently

CapEx budget 2015 ~€2.3bn PP&E

R&D 2015e: >€4.0bn

Efficient Use of Cash

Fuel organic growth

M&A

Dividend policy

Pay down debt


Organic growth complemented by bolt-on

acquisitions

Maintaining single-A credit rating category

Potential proceeds from MaterialScience exit

and Diabetes Care divestment

Pay out 30-40% of core EPS

Summary

The New Bayer – A World-Class

Life Science Company

Page 30

• Fast-growing global pharma business

• Leveraging potential of OTC leadership

• Gaining market share in CropScience

• Progressing innovation pipeline

• Setting trends in research-intensive areas in the field

of human, animal and plant health

• Leveraging sales growth into value creation

• Excellence in R&D and commercialization

• Leveraging leading brands with decade-long brand equity

• Superior emerging-market presence

Performance

Capabilities

Value



Progress of Cardiovascular Pipeline in 2015

Joerg Moeller, Head of Global Development Bayer HealthCare


Heart Failure –

A Common and Potentially Fatal Condition

● Heart failure (HF) has a high prevalence and a growing incidence

● ~ 26 million people with HF worldwide

● 600,000 new HF cases per year in Europe

● 500,000 new HF cases per year in the US

● ~ 6 million Americans suffer from HF

● 1 in 5 HF patients die within 1 year

Ref: http://www.medicographia.com/2012/02/the-heart-failure-epidemic


Heart Failure –

A Heterogenous Condition

Forms of Heart Failure

1:McMurray et al. ESC HF Guidelines 2012. Eur Heart J 2012;33(14):1787-847 2:according to ACC/AHA (stage of HF based on structure

and damage to heart muscle) and NYHA (severity based on symptoms and physical activity; MRA: mineralocorticoid receptor antagonist

ACE: angiotensin-converting-enzyme; ARB: angiotensin receptor blocker; ACC/AHA: American College of Cardiology Foundation/American

Heart Association; NYHA: New York Heart Association

Form “systolic” HF =

HF due to reduced

ejection fraction

(HFrEF)

“diastolic” HF =

HF with

preserved

ejection fraction

(HFpEF)

Therapies Multiple,therapies available incl. MRAs,

ARBs, ACE, MRAs; beta blocker etc.

No treatment available to reduce

morbidity and mortality1

● Further classification includes duration / change in symptoms2

● 2 general forms can be distinguished:


High Unmet Medical Need Persisting

in Both HFrEF and HFpEF

CHF: chronic heart failure

HFrEF: heart failure with reduced ejection fraction

HFpEF: HF with preserved EF

1:Oktay et al. Curr Heart Fail Rep (2013) 10:401–410 Steinberg et al. Circulation. (2012)126(1):65-75; 2:Fonarowet al.. JACC (2007) 50:768 ff

HFpEF passes HFrEF as cause of

hospitalizations1

HFpEF prognosis is as bad

as HFrEF after hospitalization2

R&D pipeline is addressing both forms, HFrEF and HFpEF with

innovative mechanisms and molecules.

50% EF > 50%; 35% EF < 40%; 15% EF 40 - 50%

OPTIMIZE-HF registry

HFrEF HFpEF

Postdischarge event rates at 60-90d (%)

Mortality 9.8 9.5

Mortality

and/or

re-hospitalization

36.1 35.3





Hemophilia A

ODM-201

CRPC

Copanlisib

Cancer; NHL

Finerenone

Worsening CHF


Vericiguat

Worsening CHF rEF

Worsening CHF pEF

Molidustat

Renal anemia

Vilaprisan

Uterine fibroids

Endometriosis


Phase III

Phase IIa

Phase III

Phase IIb

Phase IIb

Phase IIb

Phase IIb

Phase IIb

2016 2015 2014

Phase IIb

Phase IIb

Phase IIa

PH III decision

PH III decision

PH III decision

PH III decision

PH III decision

reported

CHF: Chronic heart failure; CRPC: Castration-resistant prostate cancer



Vericiguat


Vericiguat –

Targeting HFrEF and HFpEF

Page 37

● Vericiguat is a novel sGC stimulator targeting to stimulate cGMP

generation which is hampered in both forms of HF, HFrEF and

HFpEF

● SOCRATES phase IIb program covers two parallel trials in CHF

patients with reduced or preserved ejection fraction

1. HFrEF: SOCRATES-REDUCED phase IIb program:

● First data planned to be presented at AHA,

November, 2015

2. HFpEF: SOCRATES-PRESERVED phase IIb program:

● First data planned to be presented at a scientific

congress 1H 2016

HFrEF: heart failure with reduced ejection fraction; HFpEF: HF with preserved EF

sGC: soluble guanylate cyclase; CHF: chronic heart failure; EF: ejection fraction; cGMP:

cyclic guanosine monophosphate; NO, nitric oxide; CHF: chronic heart failure


● For CHF patients requiring

hospitalization or iv diuretic

treatment, outcomes remain

exceptionally poor

● For HF with preserved EF, no

evidence-based therapies exist

● cGMP pathway modulation is a

potential therapeutic target in

HFrEF and HFpEF

cGMP, cyclic guanosine monophosphate; eNOS, endothelial nitric oxide

synthase; GTP, guanosine triphosphate; NO, nitric oxide; sGC, soluble

guanylate cyclase

CHF:chronic heart failure; iv: intravenous, HF: heart failure

EF: ejection fraction; HFrEF: HF with reduced EF; HFpEF: HF with

preserved EF

sGC role in heart failure Vericiguat - mode of action

sGC-Stimulation – Potentially New

Approach for Heart Failure Treatment

sGC-Stimulation – Rationale for Exploration in HFrEF and HFpEF


1. Similar mechanism of myocardial remodeling in HFrEF and

advanced HFpEF1

2. Phase II study in patients with PH-sLVD and HF (LEPHT)2

• Although the primary end point of the study was not met, Riociguat

was well tolerated in patients with PH-sLVD and HF and improved

cardiac index and pulmonary and systemic vascular resistance

3. Phase II study in patients with HFpEF (DILATE-1)3

• Riociguat was well tolerated, had no significant effect on mPAP, and

improved exploratory hemodynamic and echocardiographic

parameters

PH-sLVD: PH systolic left ventricular dysfunction; HF: heart failure; HFpEF: HF with

preserved ejection fraction (EF); HFrEF: HF reduced EF; mPAP: mean pulmonary

arterial pressure

Ref: 1. Bonderman et al Circulation. 2013 ;128(5):502-11.; 2. Bonderman et al. Chest. 2014 146(5):1274-85


The SOCRATES Phase IIb in Worsening

Chronic Heart Failure - Study Design

Design 2 randomized parallel-group, placebo-controlled, double-blind,

dose finding phase IIb studies of 4 dose regimens (1.25 – 10 mg)

of the oral sGC stimulator Vericiguat over 12 weeks

Inclusion

criteria

Worsening chronic heart failure requiring hospitalization

(or IV diuretic for HF) with initiation after clinical stabilization

LVEF < 45% (HFrEF) LVEF ≥ 45% (HFpEF)

Left atrial (LA) enlargement

Primary

outcome NT-proBNP at 12 weeks NT-proBNP / LAV at 12 weeks

Secondary

outcomes

Secondary endpoints include clinical outcomes (cardiovascular death; recurrent

hospitalization for worsening heart failure etc.)

Sample size 410 patients in 5 arms 470 patients in 5 arms

sGC: soluble guanylate cyclase; LVEF: left ventricular ejection fraction; NT-proBNP:

N-terminal of the prohormone brain natriuretic peptide; LAV: left atrial volume

HFpEF: heart failure with preserved ejection fraction; HFrEF: HF reduced EF


Finerenone


Finerenone – Developed as a Potential

New Treatment Option for HF and DKD

Page 42

● MRAs are an established therapeutic option in HFrEF, but underutilized due to their side effect profile

● Finerenone is a differentiated MRA currently developed in two indications:

1. Chronic Heart Failure

● Phase IIb (ARTS-HF and ARTS-HF Japan) completed

● Data presentation planned for ESC, Aug 29-Sept 2, 2015

2. Diabetic Kidney Disease

● Phase IIb (ARTS-DN) met primary endpoint of reducing a surrogate marker for kidney function

● Phase III preparation under way – initiation of phase III 2H 2015e

HF: heart failure, DKD diabetic kidney disease; MRA: mineralocorticoid

receptor antagonist; HFrEF: heart failure with reduced ejection fraction

Benefit in pivotal studies in HFpEF not

established

MRAs are approved in HFrEF

● Benefit in patients with HFrEF

demonstrated in clinical studies

MR-Blockade is a Proven Principle in the

Treatment of Heart Diseases


● MRAs are underutilized

● Approved MRAs have a risk to

cause

● Hyperkalaemia,

● Renal dysfunction and

● Anti-androgenic / progestogenic

side effects

MRA: mineralocorticoid receptor antagonist;HFrEF: heart failure with reduced ejection fraction

HFpEF: HF with preserved ejection fraction; 1: NEJM 1999 341, 709ff

2. NEJM 2003;348:1309ff; 3 NEJM 2011;364:11ff

Study / N Drug Total mortality HR (p value)

RALES1

N= 1,663

Spironolactone 38.1% vs 50.5% 0.68

(<0.001)

EPHESUS2

N=6,642

Eplerenone 26.6% vs 30.0% 0.87 (0.002)

EMPHASIS3

N=2,737

Eplerenone 18.3% vs 25.9% 0.63

(<0.001)

Steroidal MR antagonists are not

approved for kidney diseases

Use of approved MRAs limited


Finerenone –

Differentiated Profile Amongst MRAs

Page 44

Finerenone - Profile Summary* Finerenone - Data

At least as potent as Spironolactone

and as selective as Eplerenone (based

on in vitro data**)

● Lower incidence of hyperkalaemia vs. spironolactone

● Lower incidence of worsening of renal function

● Decreased BNP/NT-proBNP – a key parameter for

cardiac stress

At least similar efficacy and

improved safety vs. Spironolactone

(based on phase IIa (ARTS) data***)

Non-steroidal structure

(Eplerenone and Spironolactone are

steroids)

N

NH

N

O

OO

NH2

O

O

O

O

O

O

Spironolactone Eplerenone Finerenone

O

S

O

O

O

H

H H

MRA: mineralocorticoid receptor antagonist; *based on published data as of June 2015

**Pitt B Eur J Heart Fail. 2012 Jun;14(6):668-75

*** Pitt B et al. European Heart Journal (2013) 34, 2453-63


Phase IIb in Worsening Chronic Heart

Failure (ARTS-HF) – Study Design

Page 45

Primary efficacy endpoint: patients with decrease in NT-proBNP > 30% (baseline to visit 9 [day 90])

Further exploratory efficacy variables include: all-cause death; CV death etc.

Details on study design at: Pitt et al European Journal of Heart Failure (2015) 17, 224–232


Rationale for Developing Finerenone in Diabetic Kidney Disease

Page 46 MRA: MR antagonist ; HF: heart failure; CKD: chronic kidney disease; CV: cardiovascular

UACR: urine albumine-creatinine ratio; AEs: adverse events: SAE: severe AEs

1: United States Renal Data System 2012

● ~29 million people with diabetes in the US (9.3% of the population)

● Diabetes causes 44% of new cases of kidney failure

● > 35% of people > 20 years of age develop diabetes “diabetic”

kidney disease (DKD)

● Cardiovascular (CV) mortality dominates CKD with 45% of deaths1

Significant need for innovative therapies

The mineralocorticoid receptor (MR) is a link between HF,

diabetes and CKD

MRAs may prevent massive pathophysiological effects of an over-activated MR


Finerenone – Phase IIb (ARTS-DN) in Diabetic Nephropathy Met Endpoint

Page 47 UACR: urine albumine-creatinine ratio

AEs: adverse events: SAE: severe AEs; 1: United States Renal Data System 2012

● Study met primary endpoint - Finerenone dose-dependently

decreased UACR - a surrogate marker for kidney function/disease

● All doses studied were safe and well tolerated

● Incidence of treatment-emergent AEs and SAEs were comparable

to placebo

● Low incidence of confirmed hyperkalemia

(serum potassium ≥ 5.6 mmol)

Phase III is currently under preparation

Initial phase IIb data in diabetic nephropathy:


Finerenone – Potential to Improve Treatment

Standard in Cardio/Renal Diseases

Page 48

MR(A): mineralocorticoid receptor (antagonist)

CHF: chronic heart failure HFrEF: heart failure with

reduced ejection fraction;: DKD: diabetic kidney disease

DKD

● Finerenone targeted

to be first-in-class

● No MRA marketed

CHF (HFrEF)

● Finerenone targeted

to be best-in-class

● May overcome low

use of marketed

steroidal MRAs*

1 based on published information as of May 11, 2015; * Although 1A recommendation in treatment guidelines, only about 32% of eligible pts

receive MRAs in the US (Krantz at al, Am J. Cardiology 2011, 107: 1818-23)

Finerenone

● Differentiated profile

vs marketed MRAs1

● Balanced renal/cardiac

activity and electrolyte

vs. anti-remodelling

effects

N

NH

N

O

OO

NH2


Molidustat


Molidustat –

Targeting Treatment of Renal Anemia

Page 50

● The HIF stabilizer Molidustat is a potent oral EPO-inducer

currently in phase IIb for treatment of renal anemia

● Molidustat is a “hypoxia mimetic” with high selectivity of the

induction of EPO-gene expression

● Favorable PK/PD, toxicology and safety profile - once daily

dosing efficient in inducing endogenous EPO within physiological

range

● No hypertension signals - may be add-on benefit for CKD

patients

● Phase IIb data expected 1H 2016e

HIF: hypoxia-inducible factor; CKD: chronic kidney disease; EPO: Erythropoietin

PK/PD: pharmacokinetic/pharmacodynamic

Renal Anemia – Pathophysiology,

Epidemiology and Treatment

EPO: Erythropoietin; CKD: chronic kidney disease; 1: estimate - US, Japan

and EU5 countries combined 2.Ref: Decision Resources, 2013, estimate

- refers to time 2012-2022; ESA: erythropoietin stimulating agents

● In CKD patients, kidneys do not produce enough EPO to stimulate sufficient red blood cell production - patients become anemic

● Estimated prevalence of CKD in adult population: ~13%

● ~7 million renal anemia patients1

● ESA including EPO have a share of ~70% amongst CKD therapies2

● EPO has to be given parenteral

unphysiologically high peak levels may be associated with hypertension, increased CV events and mortality

restriction in usage



Molidustat –

Design of the Phase IIb Program "Dialogue"*

Page 52

04 / 2014

Ph IIb – Dialogue Program

Maintenance / Titration / 4 months

N = 120 CKD on Darbepoetin alfa / 3 start doses: 25, 50, 75 mg OD vs Darbepoetin alfa

Maintenance / Titration / 4 months

N = 188 ESRD on EPO / 4 start doses: 25, 50, 75, 150 mg OD vs EPO

Fixed Dose / 4 months Treatm. N = 120 naive CKD pts / 25, 50, 75 mg OD & 25, 50 bid vs placebo

FPFV

10 / 2013

Long-term Extension

Long-term Extension

* Daily oral treatment increasing endogenous erythopoietin

CKD: chronic kidney disease; EPO: Erythropoietin; OD: once a day, bid: twice

a day; eGFR: estimated glomerular filtration rate

Dia

lysis

P

re-d

ialy

sis

Primary outcome: change in local laboratory hemoglobin level (baseline to the average

during the last 4 weeks treatment period)

Secondary outcomes include: safety, mean of the hemoglobin (Hb) levels in the target

range (10.0 to 11.0 g/dL), etc..


Summary


Summary –

Cardiovascular Pipeline Progress

Page 54

● Mid-stage cardiovascular pipeline progressing

● Bayer’s pipeline is uniquely positioned to address unmet

medical need in heart failure and kidney diseases

● Multiple decision points on potential phase III transitions

expected 2H 2015 and 1H 2016


Expected Major Newsflow from

the Pharma Pipeline

Page 55

Regorafenib Multikinase inhibitor

Wet AMD (eye drops) • Phase II completion 1H 2016e Congress 2016e

Finerenone Mineralocorticoid receptor antagonist

Chronic heart failure • Phase IIb; completed ESC Aug/Sept 2015e

Copanlisib PI3 kinase inhibitor

Non-Hodgkin’s lymphoma • Phase II completion 1H 2016e Congress 2016e

Vericiguat sGC stimulator

Wors. chronic heart failure • Phase IIb; reduced ejection

fraction - compl. mid 2015e AHA Nov 2015e

• Phase IIb; preserved ejection

fraction - compl. end 2015e

ODM-201 Androgen receptor antagonist

Non-metastatic castration-

resistant prostate cancer • Phase III completion 2018e tbd

Asset Intended Indication Status /

Expected Completion

Milestone / Data

Presentation* Targeted

Molidustat HIF-PH inhibitor

Anemia • Phase II completion 1H 2016e Congress 2016e

Vericiguat sGC stimulator

Wors. chronic heart failure Congress 2016e

Vilaprisan Selective progesterone

receptor modulator

Uterine fibroids • Phase IIb; completion 1H 2016e Congress 2016e

Regorafenib Multikinase inhibitor

HCC (2nd line) • Phase III completion 1H 2016e Congress 2016e

AMD: age-related macular degeneration; HCC: hepatocellular carcinoma

HealthCare


Leading Positions in Key Healthcare

Markets


Pharma

€12,052m

Leading positions in key therapeutic categories

Consumer Care

€4,245m

Global #2 in OTC-pharmaceuticals

Medical Care

€2,360m #1 in fluid injection systems, #1 in contrast

media, #3/4 in blood glucose meters

Animal Health

€1,318m

Global #5, #2 in parasiticides

Sales by Segment 2014

25%

60%

7%

21%

12%

HealthCare €19,975m

Consum

er

Health

Rx

FY 2014 – Dynamic Growth of HealthCare

Driven by Pharma

Page 58

Pharma

+8% (+11%)

Consumer

Health

+2% (+2%)

36%

HealthCare €19,975m; +6% (+8%)

12,052 7,923

Price

+1%

Volume

+6%

Fx

-4%

Portfolio

2%

€ million; Δ% yoy, () = Fx & portfolio adj.

FY‘13 FY‘14 FY‘13 FY‘14

5,334 5,484 +3%

3,973 3,912 -2%

Adj.

EBITDA

Adj.

EBIT


Earnings Sales

1,844 1,785

3,699 3,490 +6%

-3%

2,552 2,657

1,255 1,421

+4%

-12%

before special items, € million; Δ% yoy

FY 2014 – Top 10 HealthCare Products

• Bayer Investor Presentation • Meet Management • June 2015 Page 59 MI: Myocardial infarction

1,679

1,109

819

773

927

759

819

768

658

588

Anticoagulation

Hemophilia A

Multiple Sclerosis

Contraception

Cancer

Blood Glucose Meter

Contraception

Analgesic & sec.

MI Prevention

Ophthalmology

Hypertension

+82%

-6%

+5%

-20%

+15%

+4%

-3%

+133%

-8%

+2%

€ million; Δ% Fx adj.

Sales

http://www.adalat.com/scripts/pages/en/index.php

FY 2014 – Strong Business Momentum in

All Regions, Especially Emerging Markets


Emerging Economies

25%

HealthCare Sales

Latin

America

Eastern

Europe

Africa &

Middle East

~2,450

+12%

~1,930

+14%

~1,230 ~890

+8%

24%

USA

+6%

30%

33%

13%


Emerging

Economies¹

+13%

Emerging

Asia³

Western

Europe +8%

Others²

+10%

€19,975m; +6% (+8%)

Page 60

+16%


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

Q1 2015 – HealthCare:

All Divisions Generated Strong Growth


Pharma

+15% (+7%)

Consumer

Health

42% (+7%)

36%

HealthCare €5,742m; +26% (+7%)

3,200 2,542

Price

1%

Volume

+7%

Fx

+8%

Portfolio

+11% Q1‘14 Q1‘15

873 988

428 627

+13%

+46%

1,301

1,615 +24%

321 +46%

946

1,185 +25%

625

470

715

+14%

Sales € million; Δ% yoy, () = Fx & portfolio adj.

Earnings

Q1‘14 Q1‘15

before special items, € million; Δ% yoy

Adj.

EBITDA

Adj.

EBIT

Q1 2015 – Pharma:

Launch Products Drove Growth


Launch products

Pharmaceuticals €3,200m; +15% (+7%)

898

Q1‘14 Q1‘15 Q1‘14 Q1‘15

873

988 +13%

625

715

+14%


Earnings before special items, € million; Δ% yoy

Adj.

EBITDA

Adj.

EBIT

Q1 2015 – Consumer Health:

All Businesses with Strong Growth


Medical Care

+12% (+6%)

Consumer

Care

+69% (+8%)

36%

Consumer Health €2,542m; +42% (+7%)

600

1,556

Q1‘14 Q1‘15 Q1‘14 Q1‘15

428

627 +46%

321

+46% 470

Animal Health

+17 (+6%)

386


Earnings before special items, € million; Δ% yoy

Adj.

EBITDA

Adj.

EBIT

HealthCare:

2015 Financial Outlook (Q1 Update)

Page 64

Sales Δ% Fx & portfolio adj.

• Bayer Investor Presentation • Meet Management • June 2015 *Assuming spot Fx rates as of March 31, 2015 for rest of the year

Outlook depends on specific planning assumptions outlined in the Annual Report

HealthCare Mid-single-digit % increase (Fx +9%)

Low-twenties % increase

Pharma Mid-to-high-single-digit % increase (Fx +9%)

Launch product sales: above €4bn

Mid-teens % increase

Margin slightly below prior year

Consumer

Health Mid-single-digit % increase (Fx +9%)

Mid-thirties % increase

Sales* EBITDA before special items*

Pharma Launch

Products

Commercial Excellence at Pharma


Absolute product sales increase/decline FY 2014 yoy, Fx adj.

Δ% Fx & portfolio adj.

+€1,668m

-€364m Growth

Decline

+€1,298m

Pharma

overall

Xarelto

Eylea

Xofigo

Mirena family

Adempas

Aspirin Cardio

Stivarga

Nexavar

other

Betaseron

Kogenate

Levitra

Avelox

YAZ family

other

+11%

Pharma Launch Products Drive Growth:

Combined Peak Sales Potential of ≥€7.5bn

€ billion

FY 2014 Individual Sales

2010 2011 2012 2013 2014 2015e

0.1

1,679

224

759

€ million

0.1 0.4

1.5

2.9

89

157

Total

€2.9bn


Collective Sales

> 4.0

Xarelto: The Leading Novel Oral

Anticoagulant


Sales Achievements

Continued dynamic growth

Clear market share lead among novel

oral anticoagulants:

Xarelto: ~33%

Pradaxa: ~12%

Eliquis: ~13%

(Global anticoagulant market, sales share, March, 2015)

~13 million patients treated to date

Comprehensive global life-cycle-

management program in place

Label expansion: recommendend for

cardioversion in A‘fib-patients in

Europe

Approved for SPAF and for treatment

of DVT in China

86

322

949

1,679

482

2011 2012 2013 2014 Q1 '15

+ 38 %

€ million; Δ% yoy Fx adj.

Eylea: Label Expansion to Support Further

Growth


Sales Achievements

Strong growth driven by continued

roll-out activities

Label expansion since mid 2014

including:

DME Europe & Japan

mCNV Japan

RVO Europe

Positive data from NIH/DRCR

sponsored study comparing Eylea,

Avastin and Lucentis in DME1

Agreement with Regeneron to

develop a coformulation of Eylea and

a PDGFR-β antibody for treatment of

wAMD

DME: Diabetic macular edema, BRVO: Branched retinal vein occlusion, mCNV: Myopic choroidal

neovascularization, wAMD: Wet age-related macula degeneration NIH: National Institutes of Health, DCRC:

Diabetic Retinopathy Clincial Research Network, RVO: Retinal vein occlusion;

PDGFR: Platelet derived growth factor receptor

1) NEJM February 18, 2015 DOI: 10.1056/NEJMoa1414264

14

333

759

253

2011 2012 2013 2014 Q1 '15

€ million; Δ% yoy Fx adj.

+ 55 %

Xofigo: Significant Growth Expected


Achievements

Launch activities ongoing

Approved in 42 countries1

Launched in 30 countries1

Targeting >€300m sales in 2015

Life-cycle management program

targeting label expansions in CRPC

and additional cancer indications

underway

CRPC: Castration resistant prostate cancer

1) As of April 2015

41

157

54

2012 2013 2014 Q1 '15

Sales € million; Δ% yoy Fx adj.

+ 28 %

Stivarga: Leading 3L+ Treatment of

Metastatic Colorectal Cancer


Achievements

Most prescribed agent in 3rd-line

plus treatment of mCRC in the US

and in Japan

Roll-out activities in mCRC and GIST

continuing

Targeting increased use in 3L-

treatment of mCRC

~45,000 patients treated to date

mCRC: Metastatic colorectal cancer; GIST: Gastrointestinal stromal tumor

32

197

224

71

2011 2012 2013 2014 Q1 '15

Sales € million; Δ% yoy Fx adj.

+ 14 %

Adempas: Encouraging Early Launch

Experience


Achievements

Launched in PAH and CTEPH in first

countries

~4,300 patients treated to date2

Life-cycle management trials in

systemic sclerosis, cystic fibrosis and

in PH associated with idiopathic

interstitial pneumonias initiated

Agreement with Merck & Co. for joint

development and commercialization

of sGC-modulators in place

1) as of end of May 2015; 2) as of May 2015, PH: Pulmonary hypertension

PAH: Pulmonary arterial hypertension, CTEPH: Chronic thrombo-embolic pulmonary

hypertension, sGC: Soluble guanylate cyclase

PAH CTEPH

Approved1 53 53

Launched1 29 30

9

23 26

31

38

Sales € million

Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ‘14 Q1 ‘15

Pharma-

Pipeline


Increased R&D Investment to Support

Pharma Innovation

Support maturing mid-stage pipeline

Phase III for Copanlisib initiated


Finerenone and Vericiguat in 2015


Molidustat and Vilaprisan in 2016

Enhance research capabilities /

technologies etc.

Advance / build early pipeline

Support life-cycle management

activities for recently launched

products

2014

2015e

~350m 1.9 2.2

Pharma R&D expense 2014

& Budget 2015e € billion


Pharma R&D Focus Areas

Cardiology /

Hematology

Oncology

Additional areas incl.

Ophthalmology

Research and Early

Pipeline


ODM-201

Copanlisib

Finerenone

Vericiguat

Molidustat

Vilaprisan

ISIS-FXIRx

Xarelto (Rivaroxaban)

Eylea (Aflibercept)

Xofigo (Radium-223

dichloride)

Stivarga (Regorafenib)

Adempas (Riociguat)

Life-cycle

Management Mid- and Late-stage

Pipeline Projects


Expanding Life-cycle Management

Programs for Recently Launched Products

Major Adverse Cardiac Events:

COMPASS

Chronic Heart Failure:

COMMANDER-HF

Medically ill Patients: MARINER

Atrial Fibrillation Percutaneous Coronary

Intervention:

PIONEER AF-PCI

Embolic Stroke due to Unknown Source:

NAVIGATE ESUS

PHIII VIVID-EAST

Polypoidal Choroidal Vasculopathy -

PLANET

Phase III combination study in metastatic

prostate cancer

Phase II combination study in metastatic

breast cancer

Repeat dosing/higher dose in CRPC

Phase I/II studies in additional cancer

types

Phase II Eye-drop formulation in wet

AMD

Phase III in Liver Cancer 2nd line

Phase I combination studies to support

programs in various cancer types

Phase IIb in PH with Idiopathic Interstitial

Pneumonia

Phase IIb in Diffuse Systemic Sclerosis

RESPITE: Phase IIIB in PAH patients who did not respond top

PDE5-inhibitors

Signal-generating studies in Raynaud’s

phenomenon and Cycstic Fibrosis

Combination with PDGFR antibody

Peripheral Artery Disease (PAD): VOYAGER PAD

This slide provides a selection of studies

Cancer-associated Thrombosis (CAT):

CALLISTO


Rivaroxaban X-VeRT Trial: Protecting

Patients with AF who Undergo Cardioversion

Restoration of sinus rhythm through cardioversion in patients with AF requires adequate

anticoagulation

Current guidelines recommend at least 3 weeks of effective anticoagulation with VKAs

prior to cardioversion1 and 4 weeks after the procedure

X-VeRT investigated the efficacy and safety of rivaroxaban compared to dose adjusted

VKA in patients with non-valvular atrial fibrillation scheduled for cardioversion

Main X-VeRT study findings:

50% numerical2 reduction in the risk of stroke, TIA, peripheral embolism, myocardial

infarction and CV-death (composite primary efficacy outcome) compared to VKA

24% numerically2 lower risk of major bleeding compared to VKA3

Shorter time to cardioversion compared to VKA

1) Or less if a transesophageal echocardiogram has revealed no thrombus in the left atrial or left atrial appendage; 2) Study not powered for statistical significance

AF: Atrial fibrillation; VKA: Vitamin K antagonist; TIA: Transient ischemic attack; CV: Cardiovascular 3) primary safety outcome

January 2015 – EU label was updated with information on clinical utility of rivaroxaban in

patients with AF who require cardioversion


VENTURE-AF: Evaluating Rivaroxaban in

Patients Undergoing Catheter Ablation for AF

Catheter ablation is a technique routinely used in patients with AF in order to restore

normal heart rhythm.

Current guidelines recommend uninterrupted oral anticoagulation for these patients

before, during and after the procedure to reduce the risk of thromboembolic events.

VENTURE AF investigated rivaroxaban compared to dose adjusted VKA in 248 patients

undergoing catheter ablation for atrial fibrillation.

Main VENTURE AF study findings:

Rivaroxaban-Group: No thromboembolic events

No major bleeding (ISTH scale)

No major bleeding (TIMI and GUSTO scale)

VKA-Group: Two thromboembolic events

One major bleed (ISTH scale)

No major bleeding (TIMI and GUSTO scale)

Low incidence of non-major bleeding in both study arms

AF: Atrial fibrillation; VKA: Vitamin K antagonist


Committed to Improving Thrombosis

Management – Clinical Studies and Registries

Registries

N≈97,000

Phase IV/NIS

N≈47,000

Phase IIIb

N≈2,400

Phase II/III

N≈51,000

Completed

Over 275,000 patients are expected to be included in both clinical trials and real world settings.


Addressing Multiple Life-cycle

Opportunities for Radium-223 dichloride

Life-cycle Opportunities

Repeat dosing in CRPC

Higher dose in CRPC

Earlier disease stages

of CRPC

Combination studies in CRPC

Expansion into additional

cancer types

Addressed Through

Phase II trial assessing the short and long-term

safety of re-treatment

Phase II trial with dose higher than the

approved 50 kBq/kg

Phase I and/or II studies in breast cancer,

osteosarcoma and potentially in additional

cancer types

Phase III combination trial with abiraterone

Phase II trial in combination with abiraterone or

enzalutamide


Regorafenib – Potential for Significant

Advances in Treating wAMD

Today’s standard of

care is administered

by injection into the

eye

Eye drops could

reduce efforts,

costs, logistics and

would be more

convenient

Regorafenib inhibits VEGF receptor

signaling, a well established principle

to treat wAMD

Regorafenib eye drops may offer

topical treatment of wAMD - targeting

superior convenience but non-inferior

efficacy

Phase I completed

Phase IIa/b initiated

Comparator: Lucentis

Target enrollment: N=350 patients

Completion expected April 2016

wAMD: Wet age-related macular degeneratio; Primary completion dates

as published at clinicaltrials.gov, status May, 2015

Current Standard intravitreal injection

Project Goal topical treatment (drops)

as additional option


Potential of sGC Stimulation Goes Beyond

Vasodilation

cGMP

sGC - Stimulation

Schlossmann J & Schinner E. Naunyn Schmiedebergs Arch Pharmacol 2012;doi:10.1007/s00210-012-0730-6.

Stasch J-P et al. Circulation 2011;123:2263–73. Evgenov OV et al. Nature Rev Drug Disc 2006;5:755–68.

Effect of riociguat on bleomycin-

induced fibrosis in a mouse model (lung)

Anti-fibrosis Vasodilation Anti-proliferation Anti-inflammation

Evgenov OV et al. Poster presented at ATS, Denver, USA; 13–18 May 2011.

*p<0.05 vs control; †p=0.05 vs bleomycin

sGC: Soluble guanylate cyclase

cGMP: Cyclic guanosine monophosphate Riociguat is developed in collaboration with Merck & Co., Inc.


Riociguat – Life-cycle Management Beyond

PAH and CTEPH

Positive phase II data in PH-ILD prompt initiation of phase IIb in PH-IIP (a specific sub-

segment of PH-ILD)

Majority of PH-IIP patients suffer from pulmonary hypertension due to idiopathic

pulmonary fibrosis

No approved treatment option

Phase IIb ongoing – completion January 2017e*

Chronic systemic autoimmune disease characterized by fibrosis

No approved treatment

Strong preclinical antifibrotic data

Phase IIb ongoing – completion July 2017e*

Riociguat is developed in collaboration with Merck & Co., Inc.

PAH: Pulmonary arterial hypertension; CTEPH: Chronic thromboembolic pulmonary

hypertension; PH-ILD: Pulmonary hypertension due to interstitial lung disease

*Primary completion dates as published at clinicaltrials.gov; status May, 2015

Pulmonary hypertension with idiopathic interstitial pneumonia (PH-IIP)

Diffuse systemic sclerosis (SSc)


Data on Life-cycle Management Projects

Expected 2015 - Early 2017

Amikacin

inhale

Regorafenib

Rivaroxaban

Ra-223

Inhaled Antibiotic

Multi-kinase Inhibitor

Factor Xa Inhibitor

Alpha Pharmaceutical

Adjunctive therapy; intubated /

mech. ventilated patients with

gram-neg. pneumonia

2nd line HCC

Various areas

Bone metastases in breast

cancer

Completion* phase III

January 2016e

Completion* phase III

(RESORCE) April 2016e

NAVIGATE ESUS (PHIII) and

GEMINI ACS 1 (PHII)

ongoing, start PHIII

VOYAGER PAD, 2H 2015e

Completion* phase II May

2017e

Regorafenib Multi-kinase Inhibitor Wet AMD Completion* phase II April

2016e

Riociguat sGC Stimulator

Pulmonary hypertension (PH)

associated with idiopathic

interstitial pneumonia (IIP)

Completion* phase IIb January

2017e

*Primary completion estimates - published at clinicaltrials.gov; status April, 2015

Project Mechanism Target Area / Indication Milestone




CHF: Chronic heart failure; CRPC: Castration-resistant prostate cancer;



Hemophilia A

ODM-201

CRPC

Copanlisib

Cancer; NHL

Finerenone

Worsening CHF


Vericiguat

Worsening CHF rEF

Worsening CHF pEF

Molidustat

Renal anemia

Vilaprisan

Uterine fibroids

Endometriosis


Phase III

Phase IIa

Phase III

Phase IIb

Phase IIb

Phase IIb

Phase IIb

Phase IIb

2016 2015 2014

Phase IIb

Phase IIb

Phase IIa

PH III decision

PH III decision

PH III decision

PH III decision

PH III decision

reported


Milestones – Mid- / Late-Stage Pipeline

Molidustat HIF-PH Inhibitor Renal Anemia First Phase II data 1H 2016e tbd

Finerenone Mineralocorticoid

Receptor Antagonist Diabetic Nephropathy Phase IIb; completed Reported

Finerenone Mineralocorticoid

Receptor Antagonist wCHF Phase IIb; completed ESC Aug/Sept 2015e

Copanlisib PI3-Kinase Inhibitor Non-Hodgkin‘s Lymphoma Phase II completion 1H 2016e tbd

Vericiguat sGC Stimulator wCHF; reduced ejection

fraction Phase IIb; compl. mid 2015e AHA Nov 2015e

Vericiguat sGC Stimulator wCHF; preserved ejection

fraction Phase IIb; compl. 2H 2015e Congress 2016e

Damoctocog

alfa pegol Long-acting FVIII Hemophilia A Data from Phase III reported Filing mid 2016e

Vilaprisan Progesterone

Receptor Modulator Uterine Fibroids

Phase IIb; completion 1H

2016e Reported

ODM-201 Androgen Receptor

Antagonist

Non-Metastatic Castration-

Resistant Prostate Cancer

Phase III ongoing, completion

2018e tbd

*Primary completion estimates - published at clinicaltrials.gov; status

May, 2015; **Current plan for presentation

Project Mechanism Target Indication Status/Completion* Milestone**


ODM-201 – Strengthening Bayer’s Prostate

Cancer Franchise

enzalutamide 19%*

ARN-509 29%*

ODM-201 +

main metabolite 3% **

ODM-201 is an AR antagonist in

development in non-metastatic

CRPC

M0 prostate cancer market:

no approved therapies

Unique profile including

Promising phase II results

Low penetration into the brain

demonstrated in preclinical models

No CYP inhibition or induction

expected with therapeutic doses

In-licensed from Orion

Phase III ongoing

*Refs. Clegg et al, Cancer Research 2012; Forster et al, Prostate 2011; ** Rat autoradiography (QWBA) confirms brain/plasma ratio of 14C-ODM-201

related radioactivity was 0.04-0.06, indicating negligible penetration to the brain; profile published at ECC2013 poster E17-2119

ODM-201 has a unique preclinical profile

Compound AR

affinity

Ki (nM)

Antagonism

WT AR

IC50 (nM)

Proliferation

VCaP

IC50 (nM)

enzalutamide 78 155 400

ARN-509 53 168 300

ODM-201 9 65 500

ORM-15341

(main metabolite) 8 25 600


MR-Inhibition is a Proven Principle in the

Treatment of Heart Diseases

MR(A): Mineralocorticoid receptor (antagonist)

HF: Heart failure

aldosterone / cortisol

Overactivated MR

causing e.g.

Na+ and water retention K+ loss Hypertensive effects Vascular

inflammation/injury Myocardial/renal fibrosis Proteinuria

MR antagonist

Kidney Heart

MR has multiple functions:

Regulation of salt, fluid homoestasis and

blood pressure

Mediator of oxidative stress, subsequent

inflammation, fibrosis and cardiorenal

disease

Steroidal MR antagonists spironolactone

and eplerenone have been shown to be

effective in reducing cardiovascular

mortality in patients with HF but are

underutilized due to the risk of

hyperkalaemia, renal dysfunction and

anti-androgenic / progestogenic side

effects

Steroidal MRA are not approved for

kidney diseases eg. diabetic nephropathy


Finerenone –

Differentiated Profile Amongst MRA

MRA: Mineralocorticoid receptor antagonist

*based on published data as of Feb 2015; **Pitt B Eur J Heart Fail. 2012 Jun;14(6):668-75;

*** B. Pitt et al., Eur. Heart J. 2013; doi:10.1093/eurheartj/eht187; 1: vs. baseline;

Finerenone - Profile Summary* Finerenone - Data

At least as potent as Spironolactone

and as selective as Eplerenone (based

on in vitro data**)

● Lower incidence of hyperkalaemia vs. spironolactone

● Lower incidence of worsening of renal function

● Decreased BNP/NT-proBNP – a key parameter for

cardiac stress

At least similar efficacy and

improved safety vs. Spironolactone

(based on phase IIa (ARTS) data***)

Non-steroidal structure

(Eplerenone and Spironolactone are

steroids)

N

NH

N

O

OO

NH2

O

O

O

O

O

O

Spironolactone Eplerenone Finerenone

O

S

O

O

O

H

H H


Copanlisib – A Selective and Highly Potent

Pan Class I PI3K Inhibitor

Page 91

● Copanlisib is a potent pan PI3K

inhibitor with significant PI3Ka &

PI3Kd inhibitory activity

● Copanlisib may tackle both the

disease and resistance drivers:

● PI3Kd inhibition is recognized as a driver of

efficacy in NHL – quick onset of clinical response

● Upregulation of the PI3Ka isoform may lead to

tumor relapse via resistance mechanisms

● Dual inhibition of PI3Ka and PI3Kd may delay

resistance - leading to longer duration of response

● IV administration may provide a

differentiated safety profile vs.

oral administration-related side

effects including GI toxicity

d

a

Disease driver

Potential resistance

driver*

In aggressive lymphomas. Role of alpha in refractory / relapsed

lymphoma needs to be ascertained

A) Chem Biol (2013) 20:1364ff

Cellular IC50 values (nM)

PI3K: Phosphoinositol 3 kinase; NHL: (indolent) Non-Hodgkin’s Lymphoma

IC50: inhibitory concentration 50; GI: gastrointestinal; LFT liver function test

Isoenzyme

class


Copanlisib –

Comprehensive Clinical Program in NHL

Page 92

● Phase II in iNHL ongoing - preliminary results* encouraging:

● Significant activity shown

● Complete responses observed in several forms of NHL**

● Given positive phase IIa trial results, a successful development

program overall and regulatory approval, best-case scenario

could see first launch as early as 2017

● Phase III program in ≥ 3rd line iNHL and ≥ 2nd line iNHL initiated

● Clinical program also addresses aggressive NHL (DLBCL) –

phase II initiated

iNHL: indolent Non-Hodgkin’s lymphoma; DLBCL: diffuse large B cell lymphoma;

*Dreyling et al. ASH 2013; **in FL, mantle cell lymphoma, peripheral T-cell lymphoma

and DLBCL; *** providing positive results in the respective development programs

Copanlisib could potentially be positioned in both indolent NHL and

aggressive NHL***


NHL – Significant Potential for an Agent

Addressing the Unmet Need

Page 93

● Limited treatment options for dual

refractory iNHL patients –

refractory to Rituxan and an

alkylating agent

● Need for more effective options in

earlier lines of therapy

● Safer and more tolerable

therapies for long term utilization

● Need to address both disease

and resistance drivers to extend

overall survival

Unmet need in indolent NHL

2.37

5.72 2.2

3.4

0.96

1.48

0

2

4

6

8

10

12

2013 2020

Other NHL FL MZL

Global Market Size [$ billion]

Sources: Evaluate Pharma; Decision Resources

NHL: (indolent) Non-Hodgkin’s Lymphoma

FL: follicular lymphoma; MZL: marginal zone lymphoma


Copanlisib – Clinical Development Program

Broadly Addressing iNHL

Page 94

Patients with R/R iNHL

who progressed after

≥ 2 lines of treatment

N=120

NCT01660451

Copanlisib

IV; 60mg QW (3 weeks

on / 1 week off) until

disease progression

Primary outcome:

Tumor response

Selected inclusion criteria:

• Relapsed or refractory iNHL;

• at least 2 prior treatments

• Male or female; >18 years

• ECOG performance status ≤ 2

• Life expectancy of > 3 months

CHRONOS 1:

open-label, uncontrolled phase II




N=189

NCT02369016

Copanlisib


on / 1 week off) vs.

placebo

Primary outcome:

Progression-free

survival


• iNHL; with foll. histologies: FL,

MZL, SLL; LPL/WM; MZL

• at least 2 prior treatments incl.

rituximab and alkylating agents

• refractory to the last rituximab-

based treatment (no response

or response lasting < 6 months)

CHRONOS 2:

randomized, double-blind phase III - Copanlisib vs. placebo in Rituximab-refractory iNHL

(i)NHL: (indolent) Non-Hodgkin’s Lymphoma; FL: follicular lymphoma; MZL marginal zone lymphoma; SLL: small

lymphocytic lymphoma; LPL/WM: : lymphoplasmacytoid lymphoma/Waldenström macroglobulinemia

QW: administration three weeks on days 1, 8 and 15 of each 28-day cycle




N=567

NCT02367040

Copanlisib


on / 1 week off) +

Rituximab vs.

Rituximab + placebo

Primary outcome:

Progression-free

survival


• Confirmed CD20 pos iNHL;

• histologies: FL (grade 1.3a); SLL;

• LPL/WM; MZL relapsed after at

• least 1 prior treatments incl.

• rituximab and alkylating agents

• ECOG performance status ≤ 2

• Life expectancy of > 3 months

CHRONOS 3:

randomized, double-blind phase III - Copanlisib + Rituximab vs. Rituximab in 2L iNHL

Slide provides a selection of ongoing and currently planned studies only


Selective Progesterone Receptor Modulation

for Treatment of Uterine Fibroids

Page 95

● Uterine fibroids are the most common benign tumors in women of reproductive age: 5-10% of premenopausal population suffers from symptomatic fibroids

● Symptoms may include heavy menstrual bleeding and tumor size - related symptoms

● Current therapies include surgical procedures or short-term use of GnRH analogs for estrogen depletion

● Growth of fibroids strongly depends on progesterone and estrogen

● Progesterone receptor modulation may offer long-term treatment of uterine fibroids without estrogen depletion side effects of GnRH analogs

PR

Transcription

Activation

Endometrial

Modulation &

Fibroid Growth

sPRM

Transcription

Endometrial

Modulation &

Fibroid Growth

PR

GnRH: Gonadotropin-releasing hormone

sPRM: Selective progesterone receptor modulator


Vilaprisan –

Clinical Program Progressing

Page 96

● Vilaprisan is a novel oral, highly potent and selective progesterone receptor modulator

● Phase I data (N=67) showed proof of concept including*:

● Reduction of bleeding: induced amenorrhea (non-bleeding) in >60% of women treated with dosages >1mg/day

● Reversal of amenorrhea after treatment cessation

● No prohibitive safety findings

● Phase IIb (ASTEROID 1) in patients with symptomatic uterine fibroids ongoing – data expected 1H 2016

Vilaprisan Phase I data*

Dose effect curve for amenorrhea rate

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

010

20

30

40

50

60

70

80

90

100

Point estimate (median)

90% Credible interval

Observed rate

Efficacy threshold

Dose (mg)

Am

enorr

hea r

ate

(%

)

*Data presented by Rohde et al, SRI 2015


Renal Anemia is an Important Area of Unmet

Medical Need

Diseased kidneys do not produce sufficient levels of erythropoietin (EPO) in response to hypoxia, leading to anemia

CKD/ESRD is the leading cause of anemia in industrialized countries

Substitution with parenteral EPO is standard of care – however, un-physiologically high EPO doses correlate with significant side effects

There is a need for novel therapies that lack the side effects of high doses of EPO-substitution

CKD: Chronic kidney disease

ESRD: End-stage renal disease

Anemia

Low oxygen

level (Hypoxia)

Normal kidney

function

Impaired kidney

function

EPO

Red blood cell

formation

EPO

Normal red blood

cell count

Insufficient

formation of

red blood cells


Molidustat – An Oral HIF-PH Inhibitor for

Treatment of Renal Anemia

Increased red blood

cell production

Inhibition of HIF-PH increases the

stability of HIF resulting in production of

endogeneous EPO - potential novel

therapeutic approach for the treatment

of renal anemia

Under normal oxygen conditions, HIF

gets hydroxylated by HIF-PH and then

degraded

Under hypoxia conditions, HIF is

activated and induces the synthesis of

erythropoietin (EPO) in the kidneys

which stimulates red blood cell

formation

Nucleus

HIF HIF

Low oxygen levels

HIF Hydroxylation

HIF

Normal oxygen levels

HIF-PH

O2

hHIF hHIF

Degradation

Degraded HIF

HIF HIF

Inhibition of HIF-PH in renal

HIF-PH

O2

EPO ↑

Nucleus

EPO ↑

Nucleus

Increased red blood

cell production

HIF: Hypoxia-inducible factor

HIF-PH: HIF prolyl hydroxylase (enzyme)

hHIF: hydroxylated HIF


Molidustat –

Proof of Concept Demonstrated

EPO: Erythropoietin

HIF-PH: HIF prolyl hydroxylase

Molidustat is a novel oral inhibitor of the enzyme HIF-PH

In development for the treatment of anemia associated with chronic kidney disease

Phase I in healthy subjects showed:

Significant increase of EPO levels after ≥ 12.5 mg

Significant increase of reticulocytes for doses ≥ 37.5 mg

No prohibitive safety findings

First data from ongoing Phase IIb program expected 1H 2016

Maximal EPO concentration after single dose administration of Molidustat (Phase I)

0

10

20

30

40

50

Placebo 5 mg 12,5 mg 25 mg 37,5 mg 50 mg

EP

O [

U/L

]

Dose


Robust Innovation Pipeline in Hemophilia

and Bleeding Disorders

Kogenate

BAY 81-8973

Damoctocog Alfa Pegol (long acting FVIII)

Phase I Phase II Phase III Filed Marketed Preclinical

FVIII substitution

Novel MoA Gene Therapy

Oral Plasminogen-Inhibitor

Anti-TFPI Antibody

TFPI: Tissue factor pathway inhibitor

MoA: Mode of action


Expanding the Hemophilia Franchise – Long-

Acting Site-specific PEGylated Factor VIII

Damoctocog alfa pegol (BAY 94-

9027) is a site-specific PEGylated B-

domain-deleted recombinant factor

VIII (BDD-rFVIII)

Attachment of PEG extends half-life

without reducing FVIII activity

Positive PROTECT VIII phase III

data

Filing planned for mid 2016

Site-specific

PEGylation to

extend FVIII

half life

B-domain

deletion

• Bayer Investor Presentation • Meet Management • June 2015 Page 102 ABR: Annualized bleeding rate

PROTECT VIII is a pivotal study assessing safety and efficacy of the site-

directed PEGylated FVIII Damoctocog alfa pegol

Part A: On-demand and prophylactic treatment (completed)

Part B: Major surgery (completed)

6

Randomization

0 10 14 20 28 weeks

2x/week 25 IU/kg (n 120)

2 or more breakthrough bleeds:

No or 1 breakthrough bleeds:

36

Screening

Screening

2

On-demand therapy individual dosage n=20

2x/week 30 to 40 IU/kg n=24*

Every 5 days 45-60 IU/kg n=43

Every 7 days 60 IU/kg n=43

* 13 assigned due to bleeding; 11 default/randomization arms full

38

Damoctocog alfa pegol (BAY 94-9027) –

Design of the PROTECT VIII Phase III Study


Met primary objective of protection from bleeds with fewer infusions

10 week run in-period to identify patients at high risk of bleeding, who need 2x/week dosing (12%) -

for 88%, primary objective of protection from bleeds with fewer infusions met

Extending infusion intervals up to 7 days resulted in protection from bleeds

No inhibitors against FVIII developed during treatment period, hypersensitivity reaction in two patients

within the first 2 weeks of treatment

Study Arm

Patients (n)

remaining on

treatment

Patients with no

bleeding Median ABR

Prophylaxis: infusion

2x/week n.a. n.a. 17.4 (reduction to 4.1 after

dose increase)


every 5 days 43/43 44% 1.9


every 7 days 32/43 37%

(incl. non-completers)

3.9 *

(incl. non-completers)

On-demand treatment n.a. n.a. 23.0

*Median ABR for the 32 (74%) completers was 0.96

ABR: Annualized bleeding rate

Damoctocog alfa pegol Phase III Results -

Reduction of Infusion Frequency in Prophylaxis


Inhibition of fibrinolysis by inhibiting

plasminogen is an accepted

principle to prevent bleeding

Small molecule plasminogen

inhibitor currently in preclinical

testing for oral administration

Potential target indications include

hemophilia, vWD, platelet function

disorders, FXI deficiency

Initiation of phase I expected mid

2015

Characteristics Tranexamic

Acid

BAY

Frequency of dosing 3-4 times/day once a day

Estimated dose ~10 g <0.5 g

Potency (KD) 660 nM <10 nM

Clot stability 90% lysis* 2% lysis*

Inhibition of fibrinolysis stabilizes clots

Fragile clots of patients with bleeding

disorders remain in place until healing occurs

Plasminogen-deficiency is not thrombogenic

BAY

Plasmin Plasmino-

gen

Fibrin clot

tPA

endothelium

*4 hours after p.o. administration of 30mg/kg p.o. to rats

tPA: Tissue plasminogen activator

vWD: von Willebrand disease

Plasminogen-Inhibition for Treatment of

Rare Bleeding Disorders


TFPI is a single-chain polypeptide

which can reversibly inhibit various

clotting factors leading to bleeding

TFPI-inhibition may offer a potential

novel treatment principle for

Hemophilia A/B patients with or

without inhibitors

Hemophilia patients depend on extrinsic

pathway for clotting. anti-TFPI Ab inhibits

TFPI - thereby restoring impaired

hemostasis

BAY1093884 is a fully human moAB

Phase I initiated

TFPI: Tissue factor pathway inhibitor

moAB: monoclonal antibody

anti-TFPI Facts Role of TFPI in Coagulation

TFPI-Inhibition as a Potential Novel

Treatment Principle for Hemophilia A/B


Antisense oligonucleotide that

specifically reduces the biosynthesis

of clotting factor XI

Potential for prevention of thrombosis

in patients for whom currently

available anticoagulants may not be

used

Positive Phase II data, Phase II

ongoing

In-licensed from Isis-Pharmaceuticals

Bayer to assume global clinical

development as well as worldwide

regulatory and commercialization

responsibilities

1) Büller et al., N Engl J Med. (2015) 372; 232

ISIS-FXIRX an Antisense Drug Candidate for

the Prevention of Thrombosis

Prevention of thrombosis in patients

undergoing total knee arthroplasty1

0

5

10

15

20

25

30

35

ISIS FXI ISIS FXI Enoxaparin

Thrombosis (%) Bleeding (%)

Primary efficacy outcome: total venous thromboembolism

Principal safety outcome: major or clinically relevant non-

major bleeding

200 mg 300 mg 40 mg


Anti-FXIa Antibody Developed for

Anti-Coagulation Therapy

Page 107

Inhibition of FXIa has potential for anti-

thrombotic therapy without increased

bleeding

FXI deficiency is associated with a reduced

incidence of Ischemic Stroke and DVT

BAY1213790 is a fully-human IgG1

antibody

Preclinical studies showed

Strong antithrombotic effect in standard

animal models of venous & arterial

thrombosis

No bleeding in sensitive animal models

despite overdosing & combination with

antiplatelet therapy

Phase I initiated

ASA ASA ASA ASA ASA ASA

BAY1213790

Thro

mbus w

eig

ht

[mg]

20

10

0

Ble

edin

g t

ime [s]

ASA ASA ASA ASA ASA ASA

BAY1213790

200

400

Preclinical data (Rabbit Model)

Ctrl 0.1 0.3 1 3 10

Ctrl 0.1 0.3 1 3 10 mg/kg

mg/kg

ASA: Acetylsalicylic acid

DVT: Deep vein thrombosis

Attractive Early Pipeline Projects*

• Bayer Investor Presentation • Meet Management • June 2015 Page 108 *Selection only

BAY 1067197 Non-nucleosidic partial A1 receptor

agonist

Worsening chronic heart failure Phase IIa

ISIS-FXIRx FXIa antisense Anti-coagulation therapy Phase II

BAY 1213790 FXIa antibody Anti-coagulation therapy Phase I

BAY 1142524 Chymase inhibitor Cardiovascular diseases Phase I

BAY 1093884 Anti-TFPI antibody Hemophilia Phase I

Plasminogen-

Inhibitor

Inhibition of fibrinolysis Various bleeding disorders incl.

hemophilia

Phase I start mid

2015e

Roniciclib Pan-CDK-inhibitor Small-cell lung cancer Phase II

Anetumab

ravtansine

Mesothelin antibody-drug-

conjugate

Solid tumors Phase II

BAY 1179470 FGFR2 antibody Solid tumors Phase I

BAY 2010112 PSMA-BiTE Prostate cancer Phase I

BAY 1128688 AKR1C3 inhibitor Endometriosis Phase I

Project Mechanism Target Indication Status

OTC-

Leadership

€ billion


Consumer Care - #2 Player in a

Fragmented, Growing OTC Market

Market Category Split 2014** Market Positions 2014*

*Pro-forma OTC sales 2014 after allowing for the Novartis/Glaxo deal and

Bayer/Merck transaction; ** Growth 2014 vs. 2013

CC: Consumer Care; CASF: Cold, Allergy, Sinus, Flu; GI: Gastrointestinal

5.5%

GSK/Novartis Bayer/Merck CC

J&J Sanofi Pfizer

RB Boehringer P&G Taisho Takeda

€112.0bn

Other

13%

21%

15%

19%

13%

19%

Dermatology (+7.1%)

CASF (+2.6%)

Analgesics (+5.9%)

Nutrition (+4.5%)

GI (+7.0%)

Others

€112.0bn (+5%)

market data based on IMS/PARS FY 2014

A global OTC leader with €5.6bn sales*

Track record of market outperformance

Broad geographic presence

Excellent presence in key categories

Leading consumer brands with decade-

long brand equity

Dedicated management team with strong

track record of both performance and

smooth integration of acquired brands

Consumer Care – A Global Leader in the

OTC Market

*Pro-forma combined sales 2014 including Merck & Co.

Consumer Care and Dihon • Bayer Investor Presentation • Meet Management • June 2015


Portfolio of some of the world’s most

recognized OTC brands

Outperforming market growth in past

7 out of 8 years

Successful expansion in EM focus

markets China, Brazil, and Russia

Selected bolt-on acquisitions in key

countries: Steigerwald/Germany and

Dihon/China

Acquisition of Merck & Co’s Consumer

Care business

3.4 3.5

3.9 3.9

4.2

2010 2011 2012 2013 2014

+5%

+7% +6%

Consumer Care sales in € billion; Δ% Fx & portfolio adj.

Successfully Executing Growth Strategy

+5%


Strategic Focus on OTC Growth

Grow in Emerging Markets and the US - increase scale & scope

Maximize brand potential - focus on innovation & global expansion

Bolt-on acquisitions – strengthen portfolio & regional presence

Accelerate consumer-centric innovation – improved pipeline

Focus on five key categories:

CASF, dermatology, analgesics,

gastrointestinal, nutritionals

Focus on OTC blockbuster brands

with annual sales volume of >€100m

Grow brands through line extensions

and geographic expansion

Reflect deep customer insights in

innovative products

Leverage Rx-to-OTC switch

capabilities


Building Long-Term Brand Equity

CASF: Cold, Allergy, Sinus, Flu

Maximize brand potential -

focus on innovation & global

expansion


Strong Consumer Brands Build Equity

For Decades

Brands Years Old 2014 Sales €m yoy change (Fx-adj.)

115 9271 +5%

27 495 -

21 350 +10%

70 346 +18%

42 253 +3%

83 2262 +6%

62 198 -

109 187 -

71 167 -5%

56 154 +8%

Top 10 Brands Ø 66 3,303

Former Merck &Co Inc brands 2014 sales are pro-forma; Claritin (excl. Rx) 1Total Aspirin includes Aspirin Complex and Aspirin Cardio

(Rx);2Total Alka-Seltzer includes Alka-Seltzer and Alka-Seltzer Plus


Leading Category Positions with Well-

Known Brands


1 incl. Cardio; 2 incl. Suncare; 3 incl. foot health, women’s health, other

*After allowing for the Novartis/Glaxo deal

Global position*

Continue innovations to keep brands

relevant to consumers

Provide new benefit areas to

consumers, e.g., Aleve PM,

TruBiotics

Develop Rx to OTC switch pipeline

Further develop & expand natural /

herbal portfolio (Steigerwald, Dihon)


Need for Robust Innovation Pipeline

Accelerate Consumer-centric

innovation – develop improved

new product pipeline

• Bayer Investor Presentation • Meet Management • March 2015 Page 118

New Aspirin – One of The Biggest

Advances in Brand’s 115-Year History

* Two post-surgical dental pain efficacy studies were conducted to evaluate Bayer New Aspirin 500 mg and 325 mg tablets; both demonstrated

faster onset of pain relief compared to the previous Bayer Aspirin tablet. The results demonstrated that Bayer New Aspirin provides meaningful

pain relief twice as fast as previous Bayer Aspirin tablets.

Patent-pending micro-active technology

Clinically proven to relieve pain twice as

fast as before*

Innovative product characteristics

Launch strategy

Re-introducing Aspirin as modern and

efficacious pain reliever

Launched in Germany and Italy in 2014**

Plans to expand into 25+ countries in Europe

and Latin America through 2016

Consumer benefit

Effective pain management - speed of relief

and product strength being critical

No major changes in overall tolerability

** Italy: June 2014, Germany: mid-July 2014

Innovative product characteristics

● First OTC PM product to contain Naproxen

Sodium and Diphenhydramine HCI combination

Consumer benefit

● Consumers are yearning for a pain relieving

sleep product that provides pain relief that can

last until the morning

● Provides a sleep aid with 12-hour relief of Aleve

so you can have a restful night’s sleep with less

pain that can lead to a better morning

Launch status

● Launched in USA September 2014

Aleve PM – Addressing Consumer Needs

Through Innovation


Establish strategic partnerships with

retailers through scale & scope

Transfer brand success from

developed to emerging markets

Focus on key emerging countries

Brazil, Russia and China

Create marketing excellence

through global best-practice sharing


Building Success Stories in Emerging

Markets and the US

Grow in Emerging Markets and

the US - increase scale & scope


Enhanced Scale and Broader Category

Scope Improve Product Offerings

Example: US CASF category Benefits from Enhanced Scale

Co-promoting complementary

brands

New item assortment and shelving

opportunities

Improved merchandising

efficiencies

Bigger and more impactful trade

events

Foster strategic partnerships with

retailers

FY 2014 retail sales in CASF in $ million*

*Source: IRI; Latest 52WK; December 2014

CASF: Cold, allergy, sinus, flu

Make Consumer Care a Top Strategic Partner for US Retailers

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

http://www.google.com/url?url=http://www.foodservicedirect.com/product.cfm/p/156012/Halls-Defense-Vitamin-C-Drop.htm&rct=j&frm=1&q=&esrc=s&sa=U&ei=lJLSVJOeBPiPsQSh_YJY&ved=0CCgQ9QEwCQ&usg=AFQjCNFIdkSRpy9I8rD4JZsKXSlCWPbWVg

Exploiting Brand Potential Globally

Brand Sales by Major Region 2014 Expansion Plans


Analgesic ~80% in North America

~95% in North America

Wound-healing 70% in Europe

Anti-fungal 70% in Europe & LatAm

Vitamins & minerals ~60% in Europe

~80%* in North America CASF

Sun Care

*Claritin (excl. Rx)


Country OTC Market Sales 2014* Execution Plans

China

Global #2

Bayer Consumer

Care #1

+28%

Extend geographic footprint by launching

global brands in China (e.g. build sun care

category with Coppertone and extend Claritin

Leadership)

Brazil

Global #6

Bayer Consumer

Care #8

+26% Focus on brand building and channel

capabilities to gain share in key new

categories (Suncare, Allergy, Footcare)

Russia

Global #7

Bayer Consumer

Care #2

+26% Focus on CASF brands using current position

to roll-out extended offerings

Continue Successful Emerging Market

Strategy with New Portfolio

*Bayer Consumer Care sales, Fx-adj. growth

Market data based on IMS/PARS FY 2014

Enhanced regional positioning

in the Americas and China

Strengthened category positioning

in dermatology, GI, CASF

Closed gaps in allergy indication

Entered herbal medicines

Improving growth / profitability profile

Focus on realization of significant

synergy potential


Pursuing External Opportunities Strengthen

Portfolio and Regional Presence

Bolt-on acquisitions –

strengthen portfolio & regional

presence

CASF: Cold, Allergy, Sinus, Flu; GI: Gastrointestinal

Strengthening Portfolio Through Highly

Complementary Business Acquisitions

Dihon Pharmaceutical

Group: Chinese OTC brands

Merck & Co. Consumer Care:

American OTC/CC brands

Creating leading position

amongst multinationals in

OTC China

Access to lower-tier cities

Entry into Traditional

Chinese Medicine

Creating global OTC #2

Scaling-up US business

to #1

Gaining global leadership

in dermatology and GI

Entry into new categories:

Allergy, Suncare, Footcare

Established pharmacy-

only herbal products

Competence in

increasingly important

phytopharmaceuticals

Steigerwald:

Herbal medicines


Note: Steigerwald closed in 06/2013, Dihon closed in 11/2014

Merck & Co. Consumer Care closed in 10/2014

Well-Positioned for Future Growth –

Aspire to OTC Leadership

Strong #2 position

Leader in key categories

Multiple strong brands

Success in long-term

brand building

Track record of out-

performing market

Successful M&A

Globalize established brands

Launch innovation pipeline

Execute EM focus strategies

Successfully realize synergy

potential from acquisitions

Target strategic acquisitions

and alliances


Plans for

continued growth Achievements


Animal Health


Animal Health –

A Strong Player in an Attractive Market

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

Overall global #5 and global #2 in

parasiticides

Ranked #3 in CAP (~60% of sales)

Sector driven by:

Emotional relationships to pets

Infectious and chronic diseases

Ranked #7 in FAP (~40% of sales)

Sector driven by:

Increasing customer/consumer

awareness

Food safety & disease transmission

Globalization in farm exports

Highlights

977

1,120

1,186

1,303 1,306 1,318

2009 2010 2011 2012 2013 2014

+4%

CAP: Companion animal products

FAP: Food animal products


Animal Health –

Global Trends Drive Growth Opportunities

Pet well-being – “family” members

Convenience & Quality of Life

Resistance breaking parasiticides

Emerging resistance to antibiotics -

alternatives to antibiotics

Robust prevention and control of infectious

diseases

Improved productivity & cost-benefit ratio

Safe and sustainable food

Trends driving needs…


Selected R&D Activities

New formulations

Antimicrobials Pharmaceutical

Specialties Parasiticides

Focus to improve:

Convenience

Efficacy

Safety

Antibiotics (Quinolones)

Dairy Health

Respiratory Diseases

Allergy & Inflammation

Chronic Kidney Disease

Ecto- parasiticides

Endo- parasiticides

Endecto- parasiticides

R&D Investment approx. 10% of sales

Immuno-stimulation

Metaphylaxis

Respiratory Diseases

others


Antiinfective Health Management –

Current Limitations and Potential Solution

Limitations at present… … potential future solution

Prevention

(vaccines)

Treatment

(antibiotics)

Metaphylaxis

(antibiotics play in the category)

● Treatment: political / public pressure on

antibiotic use (resistance)

● Prevention: weeks delay in onset of

immunity, protection limited to selected

antigens

Prevention

(vaccines)

Treatment

(antibiotics)

Metaphylaxis

(immunostimulation)

● Not antigen-specific („one-for many“)

● Potential use in prophylaxis AND treatment

● Fast onset of activity


Innovative Immunostimulants – Potential Non-

Antibiotic Solution to Combat Infections

● jump-starts the

innate immune

system & helps to

eliminate infection

● Broader effect than

antibiotics and no

resistance building

● Faster & broader

effect than vaccines

● Ideal herd treatment to

reduce disease &

antibiotic usage

● Field trials ongoing

● Pending positive data, launches in 2015e

From Lab… … to Market

Sustained Life Cycle Management Building

On Excellent Brands


Our Animal Health business demonstrated strength in LCM over the past decades with a

number of top selling Brands in Industry

Advantix: + permethrin

Spectrum: + tick/mosquito

Advocate: + moxidectin

Spectrum: + worms

Advantage: imidacloprid

Spectrum: fleas/lice

Seresto: Imidacloprid/flum. collar

Spectrum: fleas/ticks 8 months duration

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

600

500

400

300

200

100

0

Advantage

Advantix

Advocate

Seresto

LCM: Life Cycle Management


Advocate – Achieving Double-Digit Growth

Ten Years After Launch

● Advocate brand is a member of the

Advantage family of parasiticides

● Long-term growth due to continuous post

marketing studies supporting new claims

● Strong performance in EU, especially in

UK due to first in category lungworm claim

Highlights

2013

136

149

+10%

2014

Advocate Sales € million; Δ% Fx adj.

http://www.animalhealth.bayer.com/fileadmin/images/advocate/contentimg/infothek/PKGC1.JPG


Seresto – On Track to Become a Leading

Product in Animal Health

● Seresto showed strong over-

performance in all regions since

launch

● Life-cycle management includes new

claims on vector borne diseases

● Target at least €100m sales mid-term

2014

52

+71%

2013

31

2012

9

US

Ex-America

Highlights Seresto Sales € million; Δ% Fx adj.

Medical Care


Medical Care – A Global Player in Diabetes

Care and Radiology

Radiology Diabetes Care

Sales 2014

Medical Care €2,360m; -7% (-4%)

38% 62%


Diabetes Care:

Comprises self testing blood

glucose monitoring devices

- to be divested

Radiology

Combines our Contrast

Media, Injector and

Informatics businesses

http://www.imaging.bayer.com/products/mri/interventional/fluid-delivery/imaxeon-avidia-angiopgraphic-injection-system


Radiology – Leading Positions in Contrast

Media and Application Devices

1,363

1,474 1,498

1,606

1,519 1,459

2009 2010 2011 2012 2013 2014

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

0% Integrated subsidiary Medrad Inc. and

our contrast media business

The business comprises:

Contrast media: CT and MRI

Contrast media injectors: Medrad

brand

Informatics

Services

Synergies through focus on similar

centers / physicians

Highlights

CropScience


We Expect the Ag-Input Market to Grow

to Around €100bn by 2020


CHANGING

CONSUMPTION PATTERNS

POPULATION

GROWTH

COMMODITY PRICE

VOLATILITY

WEATHER

FLUCTUATIONS HECTARES OF

FARMLAND

PER CAPITA

INSUFFICIENT

STORAGE

HUNGER

DECLINE IN FARMER

POPULATION

HIGHER ENVIRON-

MENTAL STANDARDS

Core challenges in the future Increase in global crop

production is required to meet

future demand for food, feed,

fuel and fiber

To cope with challenges such

as climate change and limited

global farmland, higher yields

per hectare are key

Professionalization in emerging

markets ongoing

Innovation in Agriculture is vital

to safeguard harvests and

secure future food supply

Ag input market includes Crop Protection, Seeds & Traits

Source: Bayer CropScience forecast, February 2015

Fulfilling Customer Needs with Differentiated

and Sustainable Crop Solutions


Differentiated and Sustainable Crop Solutions

Chemical

Crop

Protection

Biological

Crop

Protection

Seeds

Herbicides

Fungicides

Insecticides

SeedGrowth

Microbial

fungicides,

insecticides and

nematicides

Canola, cotton,

rice, soy, wheat,

vegetables

Conventional

seeds

GMO seeds

Traits

Weed, pest &

disease control

Stress

tolerance

Resistance

management

Customer Needs:

Yield

Quality

Convenience

Tradeability

Processability

Sustainability

GMO: Genetically modified organism

Services

24%

22%

14%

14%

8%

7%

5% 4% 3%

Fruits & Vegetables

Cereals Oilseed

Soy

Corn

Cotton

Rice

Sugar Crops

CropScience Sales 2014*

Other

Fruits, Vegetables and Cereals –

A Major Part of Our Portfolio

• Bayer Investor Presentation • Meet Management • June 2015 Page 142 *by major crop groups excluding industrial business and non-agricultural solutions

Customer-Centric Strategy Pays Off


Enhance Crop

Protection & ES

Strengthen

Customer Centricity

Lead the Way

in Innovation

Expand

Seeds Business

Adding new and

improved products

Concentrating on

core brands

Offering integrated

solutions

Expanding production

capacities

Driving commercial

excellence in

marketing and sales

Connecting partners

along the value chain

through integrated

Go-to-Market

practices

Build on expertise in

seeds, breeding,

chemical and

biological crop

protection to develop

holistic solutions

Explore new areas of

innovation, such as

digitization in

agriculture

Further strengthening

position in rice,

vegetables, oilseed

rape and cotton

Extend portfolio by

building up significant

positions in soybeans

and wheat

ES = Environmental Science

Performance

FY 2014 – Record Sales and Earnings


Crop Protection

+7% (+11%) Environmental

Science

+4% (+7%)

Seeds

+13% (+20%)

CropScience €9,494m; +8% (+11%)

Price

+2%

Volume

+9%

Fx

-4%

Portfolio

0%

7,712

FY‘13 FY‘14 FY‘13 FY‘14

2,248 2,360 +5%

1,801 1,838 +2%

Adj.

EBITDA

Adj.

EBIT

678

1,104

25.5% 24.9%


Sales

€ million; before special items

Earnings

25%

CropScience €9,494m; +8% (+11%) Latin

America

Eastern

Europe

Africa &

Middle East

Emerging

Asia³

~920

+6%

2,510

+21%

~660

+17%

~320

+18%

FY 2014 – Strong Contribution to Growth

from Emerging Economies, esp. LatAm


18%

USA

+10%

24%

46%

12%

Emerging

Economies¹

+17%

Western

Europe +4%

Others²

+9%


CropScience Sales


Emerging Economies

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

FY 2014 – Growth Above Market


*Sources: Cropnosis (Crop Protection) and GFK (Seeds)

CP excl. biologics; growth rates based on USD nominal

data; Seeds: incl. GM seeds & traits/biotechnology,

growth rates based on USD data; ES: internal estimates

2014 Sales (€ million)

Growth (Δ%yoy fx&portfolio adj.)

Market

Growth*

Growth

above market

Crop Protection 7,712 +11% +5%

Seeds 1,104 +20% +6%

Environmental

Science 678 +7% +3%

2014 Market position

Crop Protection #2

Seeds #7

Environmental

Science #1

Q1 2015 - Steady in Weak Market

Environment



Sales

€ million; before special items

Earnings

Crop Protection

+3% (-1%)

Environmental Science

+22% (+4%)

Seeds

+19% (+8%)

CropScience €3,092m; +7% (+1%)

Price

+3%

Volume

-2%

Fx

+5%

Portfolio

+1%

2,292

Q1‘14 Q1‘15 Q1‘14 Q1‘15

1,089 1,040 -5%

988 921 -7%

203

597

Adj.

EBITDA

Adj.

EBIT

Herbicides

Fungicides

Seeds

Decline mainly driven by North America

Double-digit growth in Europe

High demand for cereal prod. in Europe

Fox maintained its leadership in Brazil

Decline mainly driven by lower pest

pressure in Brazil

Lower sales in North America due to

reduced corn acreage

Sales increase in all core crops, esp.

oilseed rape / canola and soybeans

Underlying growth in both segments

Acquisition of DuPont Land Management

906

- 8%

830

+22%

335

-13%

221

-17%

203

+4%

597

+8%

Insecticides

Sales in € million; Δ% yoy Fx & portfolio adj.

Q1 2014 Nominal yoy growth/decline Q1 2015


Seed

Growth

Env.

Science

Q1 2015 – Slight Decline in Crop Protection

Compensated by Growth in Seeds and ES

ES = Environmental Science

We expect to grow faster than the market

We aim to raise sales to approx. €11 billion

This corresponds to a low- to mid-single-digit percentage increase on a

currency- and portfolio-adjusted basis

We anticipate positive currency effects of about 11% compared with 2014

We plan to improve EBITDA before special items by a low- to mid-teens

percentage

• Bayer Investor Presentation • Meet Management • June 2015 Page 150 Assuming spot Fx rates as of March 31, 2015 for rest of the year

Outlook depends on specific planning assumptions outlined in the Annual Report

Full Year 2015 Guidance (Q1 update)

861 974

1,080

2013 2014 2015e

Key Investments to Fuel Future Growth of

CropScience Independent of Cycle


Assure pipeline delivery

Enhance Biologicals portfolio

Build enabling technology platforms

Expansion of production capacity for

herbicide glufosinate-ammonium

Integrated R&D site for vegetable

seeds and biological crop protection

Build soybean and wheat business

2013 – 2016e CapEx: €2.4bn

Key Investment Areas

453

634 720

2013 2014 2015e

€ million

R&D expenses

€ million; PPE only

CapEx

*

2015e

2015e

~700

~1.1bn

*R&D expenses 2013 restated

Innovation

€1.9bn

2014 Target of > €1.8bn Sales From New

Crop Protection Products Achieved


0.4

0.7

1.1

1.5

1.9

~2.8

2010 2011 2012 2013 2014 2017e

Insecticides

New products generated nearly 70% of

absolute sales growth at Crop Protection

Herbicides

SeedGrowth Fungicides

By segment € billion; new CP products launched since 2006

New product sales

+44% CAGR

Poncho VOTiVO

Includes a biological

providing protection

against nematodes > €250m 2011

Adengo > €350m 2009 Cross-spectrum weed

control in corn at low

use rate

Four Crop Protection Innovations Launched

with High Potential


Product Key Customer Benefit Peak Sales Potential

Luna Fungicide prolongs

shelf-life of misc. fruits

& veg. by several days > €250m 2012

Xpro Cereal fungicide can

raise yields by >10%* > €300m 2011

Launch

*Individual trials in high-yielding locations, depending

on crop, variety and disease pressure

R&D Priorities at CropScience to Deliver

Differentiated and Sustainable Crop Solutions

Innovate first and best in class products

Life-Cycle Management to fully exploit portfolio value

Strategies to defend existing products

Deliver

Integrate

Multiple technologies toolbox

Global and integrated R&D organization

State-of-the-art enabling platforms

World class external collaboration network to strengthen

scientific expertise

Bayer-internal R&D synergies

Open

Innovation


Superior R&D Position with Integrated

Approach and Enabling Technologies


Accelerated

discovery of target genes

Trait Research

Improved selection &

classification of lines

Breeding

Improved quality of candidate selection & lead discovery

Chemicals

Accelerated

discovery of leads

Biologicals

Biologicals Customer

Need Breeding

Trait

Research

Synthetic

Chemistry

Using our Multiple Technologies Toolbox to

Address the Soybean Nematode Problem


Approx. 12% world crop production is lost due to nematode damages,

accounting for a value of US$100 billion per year*

Soybean cyst nematodes (SCN) are now found throughout the soybean

growing areas in both the USA and Brazil, impacting vigor and yield

High need for new modes-of-action and new approaches

Bayer CropScience

Chemicals Biologicals Traits Breeding

SCN trait Germplasm

improvements

• Nematicide

• Chemical: fluopyram

• Launched 2015 in

soybeans (ILeVO)

• Seed treatment

• Biological: Bacillus firmus

• Chemical: clothianidin

• Launched 2011

• Technical Proof-of-

Concept demonstrated

• Effective against all

major varieties of SCN

• In development

• Collaboration with

Natural Source

Genetics

• In development

*All host crops combined

CropScience Innovation Pipeline 2014-2019

with Combined Peak Sales Potential > €5bn


New launches Planned launches*

2014 2015 2016 2017 2018 2019 Verango/Velum

Nematicide

Sivanto

Insecticide

Disease control

New mixture /

formulation

Pest control

New active

ingredient

Weed control

New mixture /

formulation

Pest control

New active

ingredient

Flocter

Biological

nematicide

Council

Rice herbicide

Disease control

Country / label

extension

Disease control

Country / label

extension

Weed control

New mixture /

formulation

Disease control

New active

ingredient

FiberMax

GlyTol + TwinLink

cotton

Movento

Country / label

extension

Weed control

Country / label

extension

Weed control

Country / label

extension

Disease control

New mixture /

formulation

InVigor

Canola pod shatter

reduction

Alion

Country / label

extension

Oilseeds

Improved canola oil

profile

Cotton

Dual HT + IR

Soybeans

Triple HT

Arize

Bacterial Leaf

Blight resistant rice

Wheat

Non-hybrid wheat

seed (Ukraine)

Oilseeds

Dual HT canola

Oilseeds

Dual HT canola

Soybeans

Dual HT

Rice

Insect resistance +

disease resistance

Oilseeds

HT Ogura hybrid

Rice

Disease resistance

+ salinity tolerance

Rice

Disease tolerance

Rice

Disease resistance

+ submergence tol.

Soybeans

Dual HT


**includes selected native traits

Major Life Cycle Innovation

Chemical Crop Protection

Biological Crop Protection

Seeds & Traits**

HT: Herbicide tolerance trait

IR: Insect resistance trait

More than 100 Life Cycle Management projects

Several hundred new varieties in vegetables and broad acre crops

Key Launches in 2014


• Fluopyram nematicide

• Outstanding nematode efficacy with broad crop spectrum at very low

dose rates

• Unique efficacy against sudden death syndrome in soybeans

• Bacillus firmus I-1582 - Soil Application

• Multiple modes-of-action with direct and indirect activity against main plant

parasitic soil nematodes

• Increase of plant vigor, root health and crop yield

• Non GM solution to pod shatter reduction in Bayer canola and rapeseed

• Improved grain yield, oil content and oil quality by allowing later maturity and

reducing seed shattering

• The first double herbicide tolerance (Glyphosate and Glufosinate) +

Dual Bt insect resistance product

• Foundation product of proprietary cotton trait portfolio

• Launched in USA & Brazil

Pod

shatter

+


Significant benefits to growers

quick feeding cessation

effective virus vector control

flexible applicability at any crop stage

higher-quality produce at harvest

Outstanding safety profile

Use in fruits, vegetables and

selected broad-acre crops

Resistance management by novel

butenolide chemistry (flupyradifurone)

Available in the US for 2015 growing

season; EU registration expected in

2016

Key Launches 2015: Sivanto – A Premium

Insecticide for Fruit and Vegetable Growers

Key Launches 2015: Council – A Low-Dose

Rice Herbicide Family for Asia Pacific

Based on innovative active ingredient triafamone

Controls a variety of important weeds and sets a

new standard for efficient Echinochloa control

Can be used in direct seeded or transplanted rice

from seeding or transplanting to late post-

emergence

High productivity for the grower as a result of

saved costs, labor, time and water

Favorable environmental profile and good crop

safety

Not cross-resistant to conventional ALS-chemistry

First launch in Korea in 2015 in combination with

HPPD herbicide tefuryltrione as Council® complete

Launch in other major rice-growing countries

to follow


Triafamone ALS inhibitor

Contrary to rice, in weeds a metabolite is

formed which strongly inhibits ALS, the

branched-chain amino acid synthesizing

enzyme. Amino acids are the "building

blocks” for proteins for plant growth and

development of a plant.

Resistant Echinochloa crus-galli

in Thailand

ALS product 1 ALS product 2

ALS = Aceto-lactate-synthase

HPPD = p-hydroxyphenyl-pyruvate-deoxygenase

Exploiting the Full Potential of our Portfolio

with Life Cycle Management (LCM)


Potential

Significant returns beyond first patent expiry

10 major LCM innovations to be launched 2014 – 2019*

More than 100 LCM projects currently ongoing in R&D

Expertise

Longer & More

Registrations in new crops / countries / pests / diseases

Customer-centric innovation beyond the product / molecule

New mixtures / technologies / patents

Strong Life-Cycle Management expertise

Broad portfolio base for new mixing partners

State-of-the-art technology platforms


Example: Fungicide Trifloxystrobin

Life-Cycle Management Generates Returns

Beyond Patent Expiry


2001 2003 2005 2007 2009 2011 2013

A.I. patent expiry

Nativo brand family

Other brands

Innovative mixtures with IP Examples: Fox, Stratego Yield

Efficiency gains by production

process optimization

Explore product properties

beyond efficacy Examples: yield, quality,

abiotic stress

Develop integrated crop solutions Example: Much More Rice

Key Activities

Sales

• Insecticide family

• Lead A.I.:

Flubendiamide

• Controls lepidoptera

pests in a wide range

of crops, incl. corn

soybeans and cotton

• High demand due to

helicoverpa pest

pressure in LatAm

€500m

€2 - 2.5bn Combined Peak Sales Potential

From 3 Major Established Brand Families


• Fungicide family

• Lead A.I.:

Trifloxystrobin

• Control of soybean

rust and many other

fungal diseases

• Highly effective all-in-

one solution

• Increased plant

health effects

€1- 1.5bn

• Fungicide family

• Lead A.I.:

Prothioconazole

• Main crops: cereals

and corn

• Helps to maximize

growers profit by

protecting grain

quality and yield

> €500m

32%

27%

21%

7%

5% 8%

Vegetables Canola CottonSoybean Rice Other

FY 2014 – Seeds Sales Above €1bn For

The First Time


687

820

974

1,104

2010 2011 2013 2014

+13% CAGR

€1,104m

By crop € million

Seeds sales

Building a Soybean Business in the Key

Growth Regions


Measures Taken Market Entry

• 9 breeding centers operating,

3 more under construction

• Numerous recent acquisitions

• Significant R&D investments

• Strong integrated offer with attractive

crop protection portfolio (e.g. Belt,

Liberty and Fox)

• Aim to repeat cotton/canola success

• Addressing market needs (e.g. Asian

soybean rust, herbicide tolerance,

nematodes)

• Bayer soybean brand Credenz

launched 2014 in the US; launch in

Latin America in preparation

Well positioned to become a leading soybean player in Latin America

Building a Global Wheat Seed Business –

Largest Broad-Acre Crop Worldwide


• 7 wheat breeding centers operating

• €1.5bn R&D investment 2010 – 2020

planned for crop protection and seeds

• Acquisition of superior germplasm

• Numerous alliances

• Bayer is a global leader in crop

protection solutions in cereals

• First Bayer wheat seed currently

launching in the Ukraine

• Open pollinated variety

• Hybrid seed varieties, providing

opportunity for both yield increase

and improved yield stability, expected

after 2020

Market value still small - major potential seen with productivity improvement

Measures Taken Market Entry

Well Positioned to Address Customer Needs

with Agriculture Innovation


Integrated R&D Approach with State-of-the-art

Enabling Technologies

Multiple Technologies for Agriculture Innovation:

Chemicals, Biologicals, Traits, Breeding

Full Exploitation of Portfolio Value by Life Cycle

Management

Promising Pipeline with Peak Sales Potential > €5bn*

*Combined peak sales potential from expected launches

2014 – 2019; subject to regulatory approval

meet management 2015 in new york investor handout

Investor Relations

bn sales

increase highteens

new bayer

bn lowsingle digit

bayer group

low singledigit

bn polyurethanes

bayer website