Forward-Looking Statements

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.

Source: Climate Change Science Compendium 2009 by UNEP

Impacts of Climate Change Coming Faster and Sooner (1)

Photograph by Peter Essick

Some findings about Earth Systems

It is projected that at least half of the 10 years following 2009 will exceed the warmest year currently on record

Global emissions:

+ 1.1% per annum (1990-1999)

+ 3.5 % per annum (2000-2007)

Sooner-than-expected impacts, including: Faster sea-level rise, ocean acidification, melting Arctic sea ice, warming of polar land masses

Source: Climate Change Science Compendium 2009 by UNEP

Impacts of Climate Change Coming Faster and Sooner (2)

Some research findings about Ice

The melting of mountain glaciers appears to be accelerating

Loss of ice (1997-2006):

- West Antarctica (+ 60%)

- Antarctic Peninsula (+ 140%)

Photograph courtesy NASA

Source: Climate Change Science Compendium 2009 by UNEP

Impacts of Climate Change Coming Faster and Sooner (3)

Some findings about Oceans

Average sea level rise: plausibly between 0.8-2.0 meters above the 1990 level by 2100

Oceans are becoming more acidic more quickly than expected (jeopardizing shellfish and corals)

Photograph by Gordon Wiltsie

Source: Climate Change Science Compendium 2009 by UNEP

Impacts of Climate Change Coming Faster and Sooner (4)

Some research findings about Ecosystems

Ecosystems in sub-polar waters, the tropics and semi-enclosed seas are predicted to suffer numerous extinctions by 2050

Projections of persistent water scarcity

Photograph by Peter Essick

Photograph by David Doubilet

Source: Climate Change Science Compendium 2009 by UNEP

Impacts of Climate Change Coming Faster and Sooner (5)

Some findings about Management

Climate change may make conventional approaches to conservation and restoration of habitats ineffective

Active protection of tropical forests seems to be a cost-effective means

Dr. Darlyne A. Murawski

We need an International Climate Policy

Agreement of clear, ambitious and feasiblereduction targets for CO2 emissions

Inclusion of all major emitting countries

Fair burden-sharing between industrialized,emerging and developing countries

Promoting innovation and technological progress as central levers

Requirements:

The Bayer Climate Program

Investment of EUR 1 billion in climate-relevant R&D and projects worldwide in 2008-10

“We help with solutions”

To conserve natural resources and further lower CO2 emissions in production plants

To develop new solutions for climate protection and for dealing with climate change

To raise employees’ awareness and induce them to adopt a ”climate-friendlier” approach

Targets

A basic component of our Sustainability Strategy

Bayer Climate Program: Policy with three Basic Elements

Supporting measures

Lighthouse projects

Reduction targets

Bayer Climate Policy

BMS BCS BTS

Recent total greenhouse gas emissions:

Total greenhose gas emissions (million metric tons of CO2equivalents)

012

3456

789

2005 2006 2007 2008

4.634.44

4.004.57

3.52 3.71 3.573.67

Direct emissions of greenhouse (million metric tons of CO2equivalents)

Indirect emissions of greenhouse (million metric tons,CO2 only)

8.15 8.157.57

8.24

Bayer continues reducing greenhouse gases emissions

Mio t

Reduction from 1990 – 2007: > 37%

Global Reduction Targets 2005 – 2020

Bayer MaterialScience:

Reduction in specific greenhouse gas emissions per ton of sales product of 25 %

Bayer CropScience:Reduction in absolute greenhouse gas emissions of 15 %

Bayer HealthCare:Reduction in absolute greenhouse gas emissions of 5 %

GHG-emission of the Bayer Group to be kept on the 2 007 level up to 2020

Bayer MaterialScience (BMS):

Eco Commercial Building program

Bayer Technology Services (BTS):

Bayer Climate Check

Bayer CropScience (BCS):

Stress tolerance in plants, hybrid crops, direct seeding rice

Examples of Lighthouse Projects

Bayer Climate Program: Market Solutions

Climate Protection and Buildings

20% of global greenhouse gas emissions generated by energy consumption in buildings

Bayer’s focus is on commercial and public buildings – EcoCommercial Building Program

Eco Commercial Building (ECB): Partnership

The ECB is a unique global marketing approach

It builds a local partnership platform with the aim to construct energy efficient buildings

It offers business opportunities for all partners

In the ECB concept Bayer is a recognized partner for sustainability and for high tech materials

ECB: Global Project Launch

Phase I (2009 / 2010)

ECB: Applicable to all climate zones

Low-energy building with renewable energies

Zero-emission buildingEnergy supply by renewable energies

Zero-emission buildingEnergy supply by renewable energies

Total energy demand: ca 11 kWh/m³ a)

Zero-energy and emission buildingEnergy supply by renewable energies

Total energy demand: ca 30 kWh/m³ a)

Total energy demand: ca 30 kWh/m³ a)

Zero-Emission Building

Day-care center Monheim, Germany

BMS Office Building Greater Noida, India

Bayer Administration Diegem, Belgium

Conference CentrePittsburgh, USA

Continental Subtropical monsoon Moderate transitionalModerate cool maritime

The

ECB: BMS Partnering MASDAR

Built by: Abu Dhabi Future Energy Company

Designed by: British architect firm Foster & Partners

Initiated: 2006

Cost: 22 billion US$To be ready by 2014

45-50.000 inhabitants, 1.500 businesses

Personal rapid transit system instead of cars

MASDAR: Project in Abu Dhabi, UAE Targeting city with sustainable zero-carbon, zero-waste ecology

Future host of IRENA (International Renewable Energy Agency)

Dr. Sultan Ahmed Al Jaber, CEO of Masdar (left) and Peter Vanacker, member of the Executive Committee of Bayer MaterialScience (right)

Bayer MaterialScience to implement EcoCommercial building program in Masdar City

ECB: Cooperation signed with MASDAR

Presentation of ECB-project to Business Decision Makers:

ECB solution, partner product catalog

Lighthouse performance catalog

Preparation of BMS-partners and construction solution

Global knowledge sharing

Partner assessment, selection

Preparation of product catalog

Customize to Thai building design

Government advocacy

ECB-Thailand: Building Partnership

Preparation Q1 – Q3/2010 Implementation Q4/2010

Bayer Climate Check (1)

New instrument to reduce CO2 in production

"Climate Footprint" as KPI (certified by TÜV Sued)

Incorporation of upstream processes: raw materials, energy, logistics

Also applied to:- technology projects- planned investments

Bayer Climate Check (2)

Review of production sites worldwide

> 85 % of greenhouse gas emissions covered

Completion by mid of 2010

Map Tha Phut:

Bayer Globally:

Electricity and steam savings realized

Further reduction potential identified

The Prime Minister Industry Award

� Demand for renewable energy and biofuels

� Crop use: Energy vs Food

� Increasing food & energy demand

� Decreasing farmland per capita

� Increasing meat consumption

� Decreasing stocks to use� Yield losses through weather conditions

� Need to reduce greenhouse gas emissions

Growing wealth

Growing world population

Climate change

Need for alternative energy feedstocks

Agriculture Faces Big Challenges

Stress factors intensified by climate change:

Heat

Drought

Light intensity

Salty soil

Agriculture:More Difficult Cultivation Environment

BCS contributes to Climate-Solutions

Stress-tolerant plants (e.g. much higher yields for canola)

Innovative crop protection: Confidor/Gaucho with stress-reducing effect

Development of hybrid crops (canola, rice, cotton)

Reduction of GHG-emission by direct seeding rice

Bayer CropScienceOffers Solutions for More Resistant Plants

against abiotic stress against biotic stress

Farmers face yield losses by abiotic and by biotic s tress in plants

Bayer CropScience helps with product solutions for both

Mitigating

Viral-, bacterial and fungal diseases

Plants’ energy balance

� Plant growth

� Photosynthesis

� Root development

� Flowering and fruit set

� Yield potential, harvest quality

Leads to Better:

Protecting GauchoTest

Key figures Suphanburi

Area:13 hectares

Investment 2008-2012: >100 million Thai baht

Staff:about 25 in 2009

Bayer Thai:New Rice Development Center in Suphanburi

Breeding and plant development for Thailand and Asia

Evaluation of hybrids for adaptability to Thailand’s agro climatic conditions and suitability for consumers

Introduction of first hybrid rice in Thailand targeted for 2011

Bayer CropScience: Yield Increase with Hybrid Crops

Bayer Climate Program:Vision in Future Technologies

Expansion in Production of Carbon Nanotubes(CNT) Production

Applied Research using extraordinary functionality of CNT

Lightweight Composites for wind turbines

Lightweight plastics for aeronautic and automotive industry

Friction reduced coatings in shipping industry

Additives for Energy storage materials

Climate Protection with Nanotechnology-more than a vision

Bayer Climate Program:Vector Control

3.3 billion people at risk of malaria

250 million clinical cases per year

1 million deaths per year

New Research Platform

- New Insecticides with low vector resistance

- New Formulations (long-lasting sprays)

Public Private Partnership with IVCC

Integrated Vector Control Management

Adaptation to Climate Change in Public Health

Supporting CSR-ProgramsBayer AG:

Bayer Climate Award

50.000 EUR, biannual

Study Incentives

Prof. Dr. Eberhard Jochem awarded for research in energy efficiency

Bayer Climate Program: Supporting Initiatives (1)

Bayer Climate Program: Supporting Initiatives (2)

EcoFleet- 20% Reduction of total world wide company fleet

emissions in CO2e(2007-2012)

Business Travel- Reducing Emissions from Business Travel by

implementation of modern telecommunication and IT-based conference technologies

Green IT- Bayer Green Data Center: 20% Gain in Efficiency

- Saving Energy and Resources in Offices

Saving Emissions is everyone‘s task

Excellent ratings for Bayer

Bayer is the only company headquartered in Europe in its industry to be included in the Carbon Disclosure Project’s "Carbon DisclosureLeadership Index" for the fifth time in a row

Bayer has been continuously listed in theDow Jones Sustainability World Index since 1999

Climate change is scientifically recognized

Bayer is committed to reduce own emissions and to offer solutions to the markets

Bayer focuses on industrial production processes, commercial buildings, sustainable agriculture

Climate solutions require partnerships and provide business opportunities

Thailand has capabilities to contribute strongly to climate solutions

Climate Change: Let’s Work Together

More about the Bayer Climate Program: www.climate.bayer.com.