Investor Conference CallFY/Q4 2015 Results

February 25, 2016 / Marijn Dekkers, CEO

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers Page 1

Disclaimer

This presentation may contain forward-looking statements based on currentassumptions and forecasts made by Bayer 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 http://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 2015 Investor Conference Call • Marijn Dekkers Page 2

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2015 – A Transformational Year

2015 saw higher sales (+3% cpa.) and strong growth of adjusted EBITDA(+18%) and Core EPS (+16%); sales improvement driven by Pharma (+10%),Consumer Health (+5%) and CropScience (+2%)

Strong top-line performance in Q4: Organic sales in Pharma +10%,Consumer Health +7%, CropScience +5%; bottom-line performance mixed ashigher R&D and marketing investments as well as a challenging Agenvironment held back profit growth; adjusted EBITDA +4%; core EPS -9%,previous year benefited from tax-gain and fully included Covestro

Major strategic progress: IPO of Covestro, disposal of Diabetes Care, neworganizational set-up

Dividend proposal of €2.50, up 11% yoy, 37% payout of Core EPS

Financial outlook 2016 projects further growth and higher earnings

• Q4/FY 2015 Investor Conference Call • Marijn Dekkerscpa = Fx & portfolio adj.

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+65%

908

549

+2%

11,31910,792

+4%

1,9031,829

-9%

1.071.17

Q4’15Q4’14 Q4’15Q4’14 Q4’15Q4’14 Q4’15Q4’14

Q4 2015 – Mixed Performance

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers

EBITin € million

Salesin € million% currency & portfolio adj.

EBITDAbefore special itemsin € million

Core EPScont. op.in €

Q4 2015 – Divisional Breakdown

Page 5

Group €11,319m; +2%

1,609

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers

2014 2015

3,490

3341,844

520

-9%

+18%

1,903

+6%

257

991

+11%

+4%

Covestro-11%

CropScience+5%

Pharma+10%

ConsumerHealth+7%

2,439

2,240

3,571

2,774

939

470

369

217

1,829

Sales EBITDAin € million; ∆% yoy, Fx & portfolio adj. before special items, in € million; ∆% yoy

FY 2015 –Targets More Than Achieved

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers Page 6

2014Actual

2015 Guidance(original)

2015Actual

∆ 2015 vs. 2014

Sales €41.3bnlow-single-digit %

increase to~€46bn

€46.3bn +3%

adj. EBITDA €8.7bn low- to mid-teens % increase €10.3bn +18%

core EPS(continuing) €5.89 low-teens %

increase €6.83 +16%

✓

✓

✓

Sales ∆% yoy, Fx & portfolio adj., EBITDA before special items, continuing operations

✓

✓

FY 2015 – Launch Products Continued to Drive Performance at Pharma

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Stivarga

Launch products+42% (fx-adj.)

Establishedproducts+4% (nominal)

Pharma €13,745m; +10%

1,228

+57%

2,252

+34%

181

+89%313

+25%

4,2319,514

EyleaXarelto

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers

+43%257

Sales Product Salesin € million; ∆% yoy, Fx & portfolio adj. in € million; ∆% yoy, Fx adj.,

2015 Q4‘14 Q4‘152014Pro-forma

in € billion; ∆% yoy, Fx & portfolio adj.

FY 2015 Consumer Care –Strong Finish to a Successful Year

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers Page 8

6.15.6

1.4 1.5

Sales

+10%+12%

+5%

+2%*

+17%

* incl. Aspirin Cardio

Product SalesFx adj.

FY 2015 CropScience – Resilient in Challenging Market Environment

Page 9

CropScience €10,367m; +2%

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers

Herbicides+5%

EnvironmentalScience

+4%Seeds+9% 2,830

819

North America

Asia/Pacific

LatAm/Africa/ Middle East

3,123

+8%

2,689

-2%

1,531

3,024

-0.5%

Europe

+1%

1,596

2,911

934

1,277

Insecticides-14%Fungicides

+10%

SeedGrowth

-11%

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

+12%

+14%

+5%

~4.8

~1.9

~4.5

FY 2015 Emerging Markets - Strong, Double-Digit Growth at Pharma and Consumer Care

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EmergingMarkets¹

+6%

Industrializedcountries

+6%

Group total €46.3bn

32%

33%37%63%

Pharma ConsumerCare

CropScience

47%

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

% EM share of total divisional sales

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers

Sales, ∆% yoy, Fx adj. in € billion; ∆% yoy, Fx & portfolio adj.,

FY 2016 Life Science Guidance

Page 11

2015 2016e*

Sales €34.3bnMid-single digit %

increase~€35bn

Adj. EBITDA €8.6bn Mid-single digit % increase

Sales ∆ yoy Fx and portfolio adj., EBITDA before special items

*Assuming end Q4 2015 Fx rates (USD 1.09)Outlook depends on specific planning assumptions as detailed in the Annual Report• Q4/FY 2015 Investor Conference Call • Marijn Dekkers

FY 2016 Group Guidance Including Covestro -Further Sales and Earnings Growth

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2015 2016e*

Sales €46.3bnLow-single digit %

increase>€47bn

adj. EBITDA €10.3bn Mid-single digit % increase

core EPS(continuing) €6.83 Mid-single digit %

increase

Sales ∆ yoy Fx and portfolio adj., EBITDA before special items

*Assuming end Q4 2015 Fx rates (USD 1.09)Outlook depends on specific planning assumptions as detailed in the Annual Report• Q4/FY 2015 Investor Conference Call • Marijn Dekkers

FY 2016 –R&D and CapEx Budgets

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3%

Covestro

Pharma

Animal Health

58% 25%

6%

CropScience

29%

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers

R&D 2016e: €4.5bn CapEx (PPE) 2016e: €2.5bn

6%2%Recon.

Consumer Health

2%

Covestro

Pharma

26% 30%

CropScience

21%Recon.

Animal Health9%

12%Consumer Health

Pharma Mid-single-digit % increase Launch product sales: >€5bn

Mid- to high-single-digit % increase (expected margin improvement)

ConsumerHealth Mid-single-digit % increase Mid-single-digit % increase

CropScience Low-single-digit % increase Low-single-digit % increase

Animal Health Low- to-mid-single-digit % increase Low- to-mid-single-digit % increase

FY 2016 –Guidance by Segment

Page 14*Assuming end Q4 2015 Fx rates (USD 1.09)

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

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers

Sales Guidance Adj. EBITDA Guidance*

Investor Conference CallFY/Q4 2015 Results

February 25, 2016 / Marijn Dekkers, CEO

• Q4/FY 2015 Investor Conference Call • Marijn Dekkers Page 15