Handout Q2 2015 09 04 Final

Investor Handout
Q2 2015
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 Bayers public reports which
are available on the Bayer website at www.bayer.com.
The company assumes no liability whatsoever to update
these forward-looking statements or to conform them to
future events or developments.
Figures for 2012 have been restated due to changes in
accounting policies relating to the accounting standards
IAS 19R (Employee Benefits) and IFRS 11 (Joint
Arrangements). In addition, Bayer changed accounting
for the stock-based compensation program.
Disclaimer
The New Bayer
Transforming into a pure Life Science company and exiting MaterialScience

Executing a strategy of organic growth by streamlining portfolio
Generating strong growth with new product innovations
Expecting important R&D pipeline progress
Targeting low single-digit % organic growth and high-teens % improvement in
Core EPS in 2015*
*in continuing operations
Page 1 Bayer Investor Handout Q2 2015
Portfolio Transformation Will Focus

Business and Strengthen Life Sciences
Pharma 12.1bn
MaterialScience3) 11.7bn
Leading positions in core

therapeutic areas
Polyurethanes #1/2, Polycarbonates #1,

Coatings, Adhesives, Specialties, #1
Consumer Health
7.9bn1)
A leader in OTC and contrast
media, blood glucose
meters #3/4, Animal Health #5
Merck & Co. OTC, Dihon,

1.6bn pro-forma2)
Diabetes Care3)
0.9bn
CropScience 9.5bn
Crop Protection #2, Seeds &
Traits
Sales 2014
1)
includes 0.3bn from Merck & Co. in Q4 2014

2) FY 2014 pro-forma
3) pending
Track Record of Consistently Strong

Performance
Sales
billion
42.2
36.5
35.1
2010
2011
40.2
39.8
+5%
2012
2013
2014
5.61
6.02
5.35
CAGR 2010-2014
Core EPS
4.19
4.83
+9%
2010
2011
2012
2013
CAGR 2010-2014
2014
2nd Quarter 2015
Bayer Significantly Improves Earnings

Sales
in million
% currency & portfolio adj.
EBIT
EBITDA
Core EPS
in million
before special items

in million
in
10,228
Q214
+4%
Q214
Q215
+28%
Q214
1.98
1.48
2,176
1,435
Q215
2,899
1,833
12,090
Q215
+33%
Q214
Q215
+34%
2nd Quarter 2015 HealthCare:
All Businesses Contributed To Strong Performance

Sales
Earnings
in million, % yoy, () = Fx & portf. adj.
before special items, in million, % yoy
Consumer
Health
46% (+4%)
36%
Pharma
+18% (+11%)
EBIT
EBITDA
1,675 +28%
2,416
3,492
1,213 +27%
1,314
927
HealthCare 5,908m; +28% (+8%)

Price
+2%
Volume
+7%
Fx
+8%
Portfolio
+12%
387
Q214
1077 +16%
598
952
668
780 +17%
284
433 +53%
+55%
Q215
Q214
Q215
2nd Quarter 2015 CropScience:
Steady in Weaker Market Environment

Sales
Earnings
Environmental Science
+27% (+7%)
251
Crop Protection
+6% (-3%)
EBITDA
EBIT
2,137
733 +19%
335
615
Seeds
+27% (+11%)
599 +27%
470
CropScience 2,723m; +10% (-1%)

Price
+0%
Volume
-1%
Fx
+10%
Portfolio
+1%
Q214
Q215
Q214
Q215
2nd Quarter 2015 MaterialScience:
Earnings greatly improved

Sales
Earnings
Polycarbonates
+19% (+5%)
EBIT
EBITDA
Polyurethanes
+7% (-3%)
828
1,638
506 +87%
561
CAS**
+16% (+6%)
337 +168%
270
158
IO***
2% (-3%)
126
MaterialScience 3,185m; +11% (0%)

Price
-6%
Volume
+7%
Fx
+11%
Portfolio
0%
Q214
Q215
Q214
**CAS: Coatings, Adhesives, Specialties
Q215
*** IO: Industrial Operations
2nd Quarter 2015
Group Guidance For Operating Performance Of

Continuing Operations Confirmed
% Fx and portfolio adjusted
Fx effect
2014
2015
2015
restated
Original guidance
Update July
41.3bn
Low-single-digit %
increase
~ 46bn
Low-single-digit %
increase
~ 47bn
~ +7%
before special
items
8.7bn
Low-to-mid-teens %
increase
High-teens %
increase
~ +5%
core EPS
5.89
Low-teens %
increase
High-teens %
increase
~ +5%
Sales
EBITDA
Assuming end Q215 Fx rates

Outlook depends on specific planning assumptions as detailed in the Annual Report
2nd Quarter 2015
Guidance by Subgroup
Sales *
HealthCare
Adj. EBITDA *
Mid- single-digit % increase
Low-twenties % increase
Pharma
Mid- to high-single-digit % increase
Mid-teens % increase
Consumer
Health
Mid single-digit % increase
Mid-thirties % increase
Low single-digit % increase
Mid- to high-single digit %
(previously: low- to mid-single digit %)
(previously: Low-to mid-teens %)
Lower sales, as volume growth is over

compensated by lower selling prices
Significant increase
CFROI WACC
CropScience
MaterialScience
*Assuming end Q215 Fx rates

Sales % Fx & portf. adjusted, EBITDA before special items
Outlook depends on specific planning assumptions outlined in the Annual Report
The New Bayer
4 Key Elements Constitute

Our Successful Strategy
1. Deliver growth and performance
Fast-Growing Global Pharma Business

Sales
Plans for
continued growth
billion; % yoy Fx & portfolio adj.
Maximize the value of launch

products
Drive commercial excellence

in marketing and sales
+9%
Advance early and mid-stage

pipeline
6.7
Achieve phase III readiness for

key phase II assets by mid-2016
Explore opportunities for

partnerships, open innovation
and bolt-on acquisitions
+11%
+4%
+9%
+1%
10.8
10.0
2010
11.2
12.1
9.9
2011
2012
2013
2014 H1 2015
Pharma Launch Products Drive Growth:

Combined Peak Sales Potential of 7.5bn
Collective Sales
H1 2015 Individual Sales
billion
million
> 4.0
82
2.9
119
1,031
1.5
Total
1,949m
554
0.4
2012
163
2013
2014
2015e
Xarelto
Leading Novel Anticoagulant
Sales
Global Market Sales Share*
million; % Fx adj.
1,679
+ 41%
33%
1,031
949
12%
13%
Pradaxa
Eliquis
322
2012
2013
2014
H1 2015
Xarelto
Continued dynamic growth: gaining 5%-age points market share yoy

and 1%-age point sequentially since year end 2014
~14 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 May 2015
Eylea
Gaining Share in Key Markets
Europe
Sales
Japan
5 main countries + Switzerland
million; % Fx adj.
759
+ 52 %
59%
554
333
38%
46%
2015*
2013
22%
14
2012
2013
2014
H1 2015
2013
2015*
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- antibody**
Peak sales potential of 1.5bn reiterated
DME: Diabetic macula edema

mCNV: myopic Choroidal neovascularization
RVO retinal vein occlusion
Marketed by Bayer ex-US only
*Sales market share, May 2015
**in collaboration with Regeneron
Leveraging Potential of OTC Leadership

Consumer Care Sales
Plans for
continued growth
Achievements
billion; 2014 pro forma
5.6
3.9
2013
2014
Merck & Co. Consumer Care / Dihon
Strong #2 position
Globalize established brands
Track record of outperforming

market growth
Launch innovation pipeline
Success in long-term brand

building
Execute Emerging Markets

focus strategies
Highly complementary
acquisitions, incl. Merck & Co.
Consumer Care
Fully realize synergy potential

from acquisitions
Target strategic acquisitions

and alliances
H1 2015 Consumer Care:
Generated Strong Growth

Sales
Performance key brands
million; % Fx & portfolio adj.
% yoy, Fx adj.
+6%
+5%
3,146*
36%
1,855
+15%
+10%
1,556
H1 2014
H1 2015
*including 1,023m from Merck acquired products
H1 2015 CropScience:
Steady After Four Exceptional Years

Sales
Plans for
continued growth
billion; % Fx & portfolio adj.
+11%
+9%
+12%
8.4
+9%
6.8
9.5
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
+0.2%
7.3
2011
Strengthen portfolio through

focused and integrated crop
solutions
8.8
5.8
2010
2012
2013
2014 H1 2015
New Products Drive Growth at

Crop Protection
By segment
New product sales

billion; new CP products launched since 2006; % nominal
~2.8
Insecticides
Herbicides
+23%
1.9
1.5
1.9bn
1.1
Fungicides
0.7
SeedGrowth
0.4
2010
2011
2012
2013
2014 2017e
New products generated nearly 70% of

absolute sales growth at Crop Protection
2. Develop new growth opportunities
Confidence in Our R&D Investments

R&D 2015e: >4.0bn +10% yoy
Achievements
HealthCare
26 successful phase III clinical trials
MaterialScience
~2.6bn
thereof
Pharma
~2.2bn
at Pharma since 2010
~0.2bn
5%
CropScience
~1.1bn
Strengthened brands through
multiple line or product

introductions in Consumer Care
27%
66%
Launched 12 active ingredients
2%
between 2006 and 2014 in

CropScience
Reconciliation
~0.1bn
Pharma R&D Focus Areas
Research and Early

Pipeline
Mid- and Late-stage

Pipeline Projects
Life-cycle
Management
Cardiology /
Hematology
Damoctocog alfa pegol
Xarelto (Rivaroxaban)
Oncology
ODM-201
Eylea (Aflibercept)
Copanlisib
Xofigo (Radium-223
dichloride)
Additional areas incl.

Ophthalmology
Finerenone
Vericiguat
Molidustat
Vilaprisan
ISIS-FXIRx
Stivarga (Regorafenib)
Adempas (Riociguat)
Mid- and Late-Stage Pharma Pipeline

Progressing Current Timelines
2016
2015
Damoctocog alfa pegol
Hemophilia A
Phase III (pediatric)
ODM-201
CRPC
Copanlisib
Phase III
Phase IIa
Cancer; NHL
Phase III
Finerenone
Diabetic nephropathy
Worsening CHF
Phase III
Phase III
Vericiguat
Worsening CHF rEF
Phase IIb
data 2H 2015e
Worsening CHF pEF
Phase IIb
data 1H 2016e
Molidustat
Renal anemia
Phase IIb
data 1H 2016e
Phase IIb
data 1H 2016e
Vilaprisan
Uterine fibroids
Endometriosis
Phase IIa
CHF: Chronic heart failure; CRPC: Castration-resistant prostate cancer;
NHL: Non-Hodgkins lymphoma; r/pEF: Reduced/preserved ejection fraction
Finerenone Successful Phase II

ARTS*: Improved safety and at least similar efficacy in decreasing
biomarkers vs. spironolactone
ARTS-HF+: Decreased NT-proBNP levels a marker for cardiac
stress similar to eplerenone. A strong trend to less events
with higher doses for the secondary clinical outcome suggesting a
potential benefit in reducing mortality and CV hospitalization
ARTS-DN**: Finerenone dose-dependently decreased albumin
excretion - a marker for kidney function/disease
All doses studied were well tolerated
Phase III program will study Finerenone in CHF and DKD
NT-proBNP: N-terminal pro-B-type natriuretic peptide; CV: cardio vascular; CHF: Chronic heart failure; DKD: Diabetic Kidney disease;
*Pitt B et al. Eur Heart J 2013;34, 2453-63; **Bakris GL JAMA 2015;314(9):884-894; + ARTS-HF was a phase IIb dose-finding study with no
confirmatory testing of endpoints presented at ESC congress on Aug 31th 2015
CHF
Finerenone Phase III Program

Three Event-Driven Outcome Trials
FINESSE-HF
N~4,700
FIGARO-DKD
DKD
N~6,400
FIDELIO-DKD
N~4,800
Chronic HFrEF with T2DM and/or CKD

Patients at high risk of CV mortality and morbidity
Primary CV endpoint
Target best-in-class MRA profile in HFrEF
T2DM and CKD
DKD with high risk of developing CV events
Primary CV endpoint
Position as first-in-class MRA in DKD
T2DM and CKD
DKD with high risk of progression of CKD and
developing CV events
Primary renal endpoint
Position as first-in-class MRA in DKD
CHF: Chronic Heart Failure; CKD: chronic kidney disease; DKD: diabetic kidney disease ; MRA: mineralocorticoid receptor antagonist
CV: cardiovascular; HFrEF: heart failure with reduced ejection fraction; T2DM: type 2 diabetes mellitus
CropScience Innovation Pipeline 2014-2019

with Combined Peak Sales Potential > 5bn
New launches
2014
Planned launches*
2015
2016
Verango/Velum
Nematicide
Sivanto
Insecticide
Flocter
Biological
nematicide
FiberMax
GlyTol + TwinLink
cotton
InVigor
Canola pod shatter
reduction
Arize
Bacterial Leaf
Blight resistant rice
Council
Rice herbicide
Movento
Country / label
extension
Alion
Country / label
extension
Wheat
Non-hybrid wheat
seed (Ukraine)
Chemical Crop Protection

Major Life Cycle Innovation
Biological Crop Protection
Seeds & Traits**
HT: Herbicide tolerance trait
IR: Insect resistance trait
Disease control
New mixture /
formulation
Disease control
Country / label
extension
Weed control
Country / label
extension
Oilseeds
Improved canola oil
profile
Oilseeds
Dual HT canola
2017
Pest control
New active
ingredient
Disease control
Country / label
extension
Weed control
Country / label
extension
Cotton
Dual HT + IR
2018
2019
Weed control
New mixture /
formulation
Weed control
New mixture /
formulation
Oilseeds
Dual HT canola
Pest control
New active
ingredient
Disease control
New active
ingredient
Disease control
New mixture /
formulation
Soybeans
Triple HT
Soybeans
Dual HT
Rice
Oilseeds
Insect resistance +
HT Ogura hybrid
disease resistance
Rice
Rice
Disease resistance
Disease tolerance
+ salinity tolerance
Rice
Soybeans
Disease resistance
Dual HT
+ submergence tol.
More than 100 Life Cycle Management projects
Several hundred new varieties in vegetables and broad acre crops
*subject to regulatory approval

**includes selected native traits
Trend-setting Research in the Fields of

Human, Animal and Plant Health
Related challenges for human, animal and plant health*
Unregulated
growth
Potential for collaboration & synergies

HealthCare
R&D
CropScience
R&D
Knowledge Platforms
(ie. genomics etc.)
Molecular Target
(ie. ion channels etc.)
Resistance
control
Common Mechanisms
(ie. protein modification etc.)
Technology Platforms
(ie. HTS etc.)
Hostmicrobe
interaction
Preclinical Evaluation
(ie. Toxicology etc.)
New Molecular Entities

(ie. NCE/NBE)
*Examples
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*
Major examples only
Pro-Forma 2014 Sales ~ 31bn
2003 Sales 28.6bn
HealthCare
Merck & Co. Consumer Care

Dihon
Algeta
Conceptus
Steigerwald GmbH
Schering AG
Roche OTC
Diagnostics
Plasma
Diabetes Care**
Divestitures
12bn
CropScience
+
+
+
+
+
+
+
HealthCare
Acquisitions
36bn
MaterialScience
Capital-market
exit planned
Chemicals
HC Starck
Wolff Walsrode
Lanxess spin-off
Bayer Silicones
AgraQuest
Athenix
Stoneville Cotton Seed
Gustafson Seed Treatment
Divested
Divested
+
+
+
+
CropScience
*Transaction volume: acquisitions/divestments 2004 2014

**pending
Life Science Transformation on Track

Demerger of
MaterialScience
Merck Consumer Care

Integration
Exit of
Diabetes Care
Initial Public Offering

(IPO) expected to be
completed in Q4 2015,
subject to capital
market conditions
Integration progressing
as planned
Divestment for total

consideration of ~1,022m
Synergy tracking and

integration teams in
place
Closing expected in
Q1 2016
Potential proceeds reinvested in the

business/
reduction of net debt
Confirmed 2017
synergy targets:
USD400m top-line
USD200m costsynergies by 2017
LS: Life Sciences

4. Delever balance sheet and use

cash efficiently
Efficient Use of Cash

Fuel organic growth
Pay down debt
M&A
Dividend policy
CapEx budget 2015 ~2.3bn PP&E
R&D 2015e: >4.0bn
Maintaining single-A credit rating category
Potential proceeds from MaterialScience exit

and Diabetes Care divestment
Organic growth complemented by bolt-on

acquisitions
Pay out 30-40% of core EPS
Summary
The New Bayer A World-Class

Life Science Company
Performance
Capabilities
Value
Fast-growing global pharma business
Excellence in R&D and commercialization
Progressing innovation pipeline
Leveraging sales growth into value creation
Leveraging potential of OTC leadership

Gaining market share in CropScience
Leveraging leading brands with decade-long brand equity

Superior emerging-market presence
Setting trends in research-intensive areas in the field

of human, animal and plant health
Date
Event
Publication
Thursday,
October 29, 2015
Investor Conference
Call
Third Quarter 2015 Results

Stockholders Newsletter
Thursday,
February 25, 2016
Investor Conference
Call
2015 Annual Report
Tuesday,
April 26, 2016
Investor Conference
Call
First Quarter 2016 Results

Friday,
April 29, 2016
Annual General
Meeting
Wednesday,
July 27, 2016
Investor Conference
Call
Second Quarter 2016 Results

Wednesday,
October 26, 2016
Investor Conference
Call
Third Quarter 2016 Results

Reporting Events
Dr. Alexander Rosar

Head of Investor Relations
Phone: +49-214-30-81013
E-mail: alexander.rosar@bayer.com
Dr. Jrgen Beunink

Phone: +49-214-30-65742
E-mail: juergen.beunink@bayer.com
Judith Nestmann
Phone: +49-214-30-66836
E-mail: judith.nestmann@bayer.com
Peter Dahlhoff
Phone: +49-214-30-33022
E-mail: peter.dahlhoff@bayer.com
Constance Spitzer
Phone: +49-214-30-33021
E-mail: constance.spitzer@bayer.com
Dr. Olaf Weber

Phone: +49-214-30-33567
E-mail: olaf.weber@bayer.com
Contacts

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Handout Q2 2015 09 04 Final

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Investor Handout

This presentation may contain forward-looking statements

The New Bayer

Transforming into a pure Life Science company and exiting MaterialScience

Page 1 Bayer Investor Handout Q2 2015

Portfolio Transformation Will Focus

Leading positions in core

Polyurethanes #1/2, Polycarbonates #1,

Merck & Co. OTC, Dihon,

Page 2 Bayer Investor Handout Q2 2015

includes 0.3bn from Merck & Co. in Q4 2014

Track Record of Consistently Strong

Page 3 Bayer Investor Handout Q2 2015

2nd Quarter 2015

Bayer Significantly Improves Earnings

before special items

2nd Quarter 2015 HealthCare:

All Businesses Contributed To Strong Performance

in million, % yoy, () = Fx & portf. adj.

before special items, in million, % yoy

HealthCare 5,908m; +28% (+8%)

Page 5 Bayer Investor Handout Q2 2015

2nd Quarter 2015 CropScience:

Steady in Weaker Market Environment

in million, % yoy, () = Fx & portf. adj.

before special items, in million, % yoy

CropScience 2,723m; +10% (-1%)

Page 6 Bayer Investor Handout Q2 2015

2nd Quarter 2015 MaterialScience:

Earnings greatly improved

in million, % yoy, () = Fx & portf. adj.

before special items, in million, % yoy

MaterialScience 3,185m; +11% (0%)

**CAS: Coatings, Adhesives, Specialties

*** IO: Industrial Operations

Page 7 Bayer Investor Handout Q2 2015

2nd Quarter 2015

Group Guidance For Operating Performance Of

Page 8 Bayer Investor Handout Q2 2015

Assuming end Q215 Fx rates

2nd Quarter 2015

Mid- single-digit % increase

Mid- to high-single-digit % increase

Mid single-digit % increase

Low single-digit % increase

Mid- to high-single digit %

(previously: low- to mid-single digit %)

(previously: Low-to mid-teens %)

Lower sales, as volume growth is over

Page 9 Bayer Investor Handout Q2 2015

*Assuming end Q215 Fx rates

The New Bayer

4 Key Elements Constitute

1. Deliver growth and performance

Fast-Growing Global Pharma Business

billion; % yoy Fx & portfolio adj.

Maximize the value of launch

Drive commercial excellence

Advance early and mid-stage

Achieve phase III readiness for

Explore opportunities for

Page 12 Bayer Investor Handout Q2 2015

Pharma Launch Products Drive Growth: