FY/Q4 2013 Investor Conference Call Presentation Charts

Investor Conference CallFY/Q4 2013 Results

February 28, 2014 / Marijn Dekkers, CEO

DisclaimerThis presentation may contain forward-looking statements based on currentassumptions and forecasts made by Bayer Group or subgroup management.

Various known and unknown risks, uncertainties and other factors could lead tomaterial differences between the actual future results, financial situation,development or performance of the company and the estimates given here.These factors include those discussed in Bayer’s public reports which areavailable on the Bayer website at www.bayer.com.

The company assumes no liability whatsoever to update these forward-lookingstatements or to conform them to future events or developments.

• Q4/FY 2013 Investor Conference Call • Marijn Dekkers Page 2

Page 3

2013 – Continuous Growth

Dynamic development in the Life Sciences,

MaterialScience below expectations

Outstanding growth for pharma launch products (sales of €1.5bn)

Further strategic progress with planned bolt-on acquisitions

Guidance 2014: Further growth in sales and earnings

• Q4/FY 2013 Investor Conference Call • Marijn Dekkers

FY 2013 – All Targets Achieved Operationally


Sales ∆ Fx & portf. adjusted, EBITDA before special items

2013 Guidance Original

(@ ØQ4’12 FX)

2013Reported

∆ 2013 Reported vs. 2012

∆ 2013 Reported vs. 2012

(@ ØQ4’12 FX)

Sales +4-5% cpa. to~€41bn €40.2bn +5% cpa. +5% cpa.

adj. EBITDA

mid-single-digit% increase €8.4bn +1% +6%

core EPS high-single-digit % increase €5.61 +6% +12%

Page 5

EBITin € million

-10%

655729

Salesin € million% currency & portfolio adj.

+6%

9,8889,860

EBITDAadjusted**in € million

-3%

1,7691,826

Core EPSin €

+9%

1.101.01

*Prior-year figures restated**before special items

Q4’13Q4’12* Q4’13Q4’12* Q4’13Q4’12* Q4’13Q4’12*

Q4 2013 – Mixed Performance


Q4 2013 – Regional Performance: Growth Led by Emerging Economies

Page 6

Africa & Middle East

EasternEurope

Emerging Economies

EmergingEconomies¹

+8%

Others²+11%

USA+6%

Western Europe+5%

Q4 2013 Group Sales by Region

Group €9,888m; +7%

~1,400

+6%

~1,600

+15%

~400

-3%

~500

0%

¹ Emerging economies include: Latin America, Asia w/o Japan, Australia,New Zealand, Africa and Middle East incl. Turkey, Eastern Europe

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

In € million, ∆% yoy Fx adjusted

40%

9%31%

20%

Emerging Asia³

LatinAmerica


Almost 98% of share capital tendered

Required regulatory approvals obtained

Compulsory acquisition and delisting intended

Closing expected in Q1’14

Enterprise value: ~€1.9bn

Significant synergies expected from full control over Xofigo

Significant synergies expected from complementary OTC business

Transaction agreement signed on February 26, 2014

Regulatory approval process prepared

Closing expected in H2 2014

Portfolio of well-known local consumer brands

Sales 2013*: €123m

Algeta ASA:Strengthening Oncology

Dihon Pharmaceutical Group:Chinese OTC brands

Page 7

Planned Bolt-on Acquisitions to Strengthen HealthCare Portfolio

• Q4/FY 2013 Investor Conference Call • Marijn Dekkers * Not audited

Page 8

Pharma – Incremental Investments in 2014 for a New Performance Level

0.4

1.5

~2.8

2012 2013 2014e

New product sales in € bn Launch product* sales target of ~€2.8bn

in 2014 (old aspiration 2015: >€2.5bn)

Launch phase to continue with >100 new launch events**

Continuous R&D investments in life-cycle management

R&D investments in new drug candidates

Increased marketing and sales investments in emerging markets

Incremental marketing and R&D investments of €0.5bn planned in 2014

* Xarelto, Eylea, Stivarga, Xofigo, Adempas** new indications and new countries• Q4/FY 2013 Investor Conference Call • Marijn Dekkers

Page 9

Pharma – Peak Sales Potential of NewProducts Raised to ≥€7.5bn*

*assuming approvals and launches as planned

Continued successful launch exe-cution and life cycle management

Successful launch and positive life cycle management

Unchanged

Unchanged

Unchanged

~€3.5bn

≥€1.5bn

≥€1bn

≥€1bn

≥€0.5bn

>€2bn

≥€1bn

Old New


FY 2014 Group Guidance –Further Sales and Earnings Growth

Page 10

2013 2014E*

Sales €40.2bn~5% to

~€41-42bn(neg. FX effect approx. -2%)

adj. EBITDA €8.4bnlow- to mid-single-digit % increase

(neg. FX effect approx. -5%)

core EPS €5.61mid-single-digit %

increase(neg. FX effect approx. -6%)

Sales ∆ Fx and portfolio adjusted, EBITDA before special items

*Assuming average Fx rates of Q4’13 (USD 1.36)Outlook depends on specific planning assumptions as detailed in the Annual Report• Q4/FY 2013 Investor Conference Call • Marijn Dekkers

FY 2014 –R&D and CapEx Budgets

Page 11

3%

MaterialScience~€0.2bn

HealthCare~€2.3nthereof Pharma ~€1.9bn

MaterialScience~€0.7bn

HealthCare~€0.7bn

Reconciliation~€0.1bn

65%26%

6%

Reconciliation~€0.2bn

CropScience~€0.9bn

CropScience~€0.6bn

CapEx (PPE) 2014e: ~€2.1bn (+20%)R&D 2014e: ~€3.5bn (+9%)

31%

28%

31%

10%


HealthCare Mid-single-digit % increase cpa.(FX -2%)

Slight increase (FX ca. -€250m)

PharmaHigh-single-digit % increase cpa.(FX -2%)Launch product sales: ~€2.8bn

Low- to mid-single-digit % increase (FX ca. -€150m)Adj. EBITDA margin: level with prior year (2016: ≥33%)

ConsumerHealth

Low- to mid-single-digit % increase cpa.(FX -3%)

Slightly below prior year (FX ca. -€100m)

CropScience Mid- to high-single-digit % increase cpa. (FX -3%)

Low-single-digit % increase (FX ca. -€150m)

MaterialScienceMid-single-digit % increase cpa.(FX -2%)

Q1’14 vs. Q1’13: increase cpa.

Increase (FX ca. -€50m)

Q1’14 vs. Q1’13: significant increase

FY 2014 –Guidance by Subgroup

Page 12*Assuming average Fx rates of Q4’13 (USD 1.36)

Sales ∆ Fx & portf. adjusted, EBITDA before special itemsOutlook depends on specific planning assumptions as detailed in the Annual Report


Sales Guidance* Adj. EBITDA Guidance*

Investor Conference CallFY/Q4 2013 Results

February 28, 2014 / Marijn Dekkers, CEO

Page 14

Appendix


Q4 2013 –HealthCare

Page 15*before special items

Sales Earnings1

Pharma+4% (+12%)

ConsumerHealth

-4% (+1%)36%

HealthCare €4,939m; +0% (+7%)

2,9751,964

Price+3%

Volume+5%

Fx-8%

Portfolio+1%

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

Q4‘12 Q4‘13 Q4‘12 Q4‘13

835 822

524 515

-2%

-2%

1,359 1,337 -2%

416 -3%

1,018 985 -3%

602

405

Adj.EBITDA*

Adj.EBIT*

580 -4%

• Q4/FY 2013 Investor Conference Call • Marijn Dekkers 1 Prior-year figures restated.

Sales Earnings1

Q4 2013 –CropScience

Page 16

Crop Protection+6% (+14%)

Environmental Science-11% (-5%)

Seeds+20% (+25%)


CropScience €1,951m; +5% (+13%)

Price+1%

Volume+12%

Fx-8%

Portfolio+1%

1,626

Q4‘12 Q4‘13 Q4‘12 Q4‘13

295319 +8%

168203 +21%

Adj.EBITDA*

Adj.EBIT*

154171

• Q4/FY 2013 Investor Conference Call • Marijn Dekkers *before special items

1 Prior-year figures restated.

Sales Earnings1

Q4 2013 –MaterialScience

Page 17**CAS: Coatings, Adhesives, Specialties *** IO: Industrial Operations

CAS**-8% (-1%)


*before special items

MaterialScience €2,691m; -3% (+2%)

Price-2%

Volume+4%

Fx-4%

Portfolio0%

1,472640

IO***-4% (-2%)

Q4‘12 Q4‘13 Q4‘12 Q4‘13

Adj.EBITDA*

Adj.EBIT*

264248 -6%

95 88 -7%

417

162

• Q4/FY 2013 Investor Conference Call • Marijn Dekkers 1 Prior-year figures restated.

Polyurethanes0% (+4%)

Polycarbonates-4% (-1%)

Q4 2013 –Cash Flow And Net Debt Development

Page 18

-€1.0bn

6.7

GCF oFCF

978

Invest-ments

776 804

∆y-o-y +35% >100%

NCF

1,580

+74% +4%Sep 30, 2013 Dec 31, 2013

7.7

Q4 2013 Cash Flow Net Debt DevelopmentCash Flow in € million, Net Debt in € billion


FY 2013 –HealthCare

• Q4/FY 2013 Investor Conference Call • Marijn Dekkers Page 19*before special items

2013 Sales Earnings1

Pharma+4% (+9%)

ConsumerHealth

-1% (+3%)36%

HealthCare €18,924m; +2% (+7%)

11,1887,736

Price+1%

Volume+6%

Fx-6%

Portfolio+1%


FY‘12 FY‘13 FY‘12 FY‘13

3,2323,490

1,887 1,844

+8%

-2%

5,1195,334 +4%

1,460 -3%

3,7873,973 +5%

2,327

1,421

Adj.EBITDA*

Adj.EBIT*

2,552 +10%


FY 2013 –CropScience


Crop Protection+7% (+11%)

EnvironmentalScience

-4% (+1%)

*before special items

Seeds+1% (+1%)

2013 Sales Earnings1In € million, ∆% yoy, () = Fx & portf. adjusted

CropScience €8,819m; +5% (+9%)

Price+3%

Volume+7%

Fx-5%

Portfolio+1%

7,194

FY‘12 FY‘13 FY‘12 FY‘13

2,0252,248 +11%

1,543

1,801 +17%

Adj.EBITDA*

Adj.EBIT*

651974


FY 2013 –MaterialScience


2013 Sales Earnings1In € million, ∆% yoy, () = Fx & portf. adjusted

MaterialScience €11,238m; -2% (0%)

Price0%

Volume+1%

Fx-2%

Portfolio0%

6,054

FY‘12 FY‘13 FY‘12 FY‘13

Adj.EBITDA*

Adj.EBIT*

1,263

1,072 -15%

613

429 -30%

Polycarbonates-6% (-5%)

CAS**-6% (-2%)

2,640

IO***-4% (-4%)

1,863

681

Polyurethanes+1% (+4%)

**CAS: Coatings, Adhesives, Specialties *** IO: Industrial Operations*before special items1 Prior-year figures restated.

FY 2013 –Cash Flow And Net Debt Development

Page 22

-€0.3bn 6.7

GCF oFCF

5,832

Invest-ments

2,157 3,014

∆y-o-y +28% +16%

NCF

5,171

+14% +12%Dec 31, 2012 Dec 31, 2013

7.0

FY 2013 Cash Flow Net Debt DevelopmentCash Flow in € million, Net Debt in € billion


FY 2013 –Regional Performance


Africa & Middle East

EasternEurope

Emerging Economies

EmergingEconomies¹

+7%

Others²+10%

USA+4%

Western Europe+2%

2013 Group Sales by Region

Group €40,157m; +5%

~5,100

+15%~5,800

+4%

~1,700

-1%~2,500

+7%

¹ Emerging economies include: Latin America, Asia w/o Japan, Australia,New Zealand, Africa and Middle East incl. Turkey, Eastern Europe

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

In € million, ∆% yoy Fx adjusted

38%

10%31%

21%

Latin America

Emerging Asia³

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