Meet Management 2012 Investor Handout

Investor Presentation
Meet Management
March 2012 I Leverkusen

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.

Page 2 • Bayer Investor Presentation • Meet Management • March 2012

Bayer –
Science For A Better Life

 Market leading positions in vast majority of portfolio

 New product pipeline strength in Pharma, CropProtection & BioScience

 Strong and profitable growth in emerging markets, especially China

 Unique opportunity at the interfaces of human, animal and plant health

 Group wide excellence initiatives to further boost earnings and free-up
growth resources

 Incentive systems aligned to business specific challenges

Mid-term targets show significant further value generation potential


Full Year 2011 –
Record Sales and EBIT

Sales EBIT EBITDA Core EPS
in € million adjusted*
% portfolio & currency adj. in € million in € million in €

35,088 36,528 7,613
4,149 7,101
4.83
4.19
2,730

FY´10 FY´11 FY´10 FY´11 FY´10 FY´11 FY´10 FY´11

+6% +52% +7% +15%
*before special items

2007 – 2011
A Period of Significant Progress

Sales (€ billion) EBITDA before special items margin* (%)
22
36.5
35.1
21.1
32.4 32.9
31.2 21 20.9 20.8 20.8

20.2

20
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

EBITDA before special items* (€ billion) Core earnings per share* (€)
6
7.6
7.1 4.83
6.9 5
6.8
6.5 4.17 4.19
4 3.80 3.64

3
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

* 2007 - 2008 from continuing operations

2007 – 2011
Consistent Strong Cash Generation

Gross Cash Flow* (€ billion) Trade working capital to sales ratio (%)

5.3 40
5.2
35 31.2
4.8 4.8 30.4
4.7 29.6
30 26.4 26.4
25

20
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

Net Cash Flow* (€ billion) Net financial debt** (€ billion)
20

5.4 5.8 16 14.2
5.1 12.2
4.3 9.7
3.6 12 7.9
7.0
8
4
0
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

*2007 - 2008 from continuing operations
Page 4 • Bayer Investor Presentation • Meet Management • March 2012 ** year-end data

2012
–
Financial Outlook


Outlook 2012 –
Planning Assumptions
GDP growth by regions in % vs previous yer
 Global economic/political risks
remain high
5  Outlook for economic growth
5.1
4
4.8 marked by uncertainty
3 3.3
 Positive signals for North America,
2.6
in Europe we expect slower
2
expansion in 2012 than 2011
1.7
1
0.7
 Asian emerging markets continue to
drive growth
 $/€ 1.40, 1% depreciation of Euro
increases sales by ~€70m and
EBITDA by ~€20m
 Crude oil: average $110/bbl (Brent)


Outlook 2012 –
Planning Assumptions
2011 Group sales break-down in %, growth estimates in %

Expected 2012 Global Market Development
10 % OTC-pharma
Low- to mid-single digit growth
3 % Diabetes care
low-single digit growth
27 % Rx-pharma
Mid-single digit growth, driven by
emerging markets
3 % Animal Health
Moderate growth

20 % Agrochemicals/Seeds
Positive development

15 % Others
5 % Furniture/wood 6 % Automotive
Robust growth
Ongoing recovery,
small growth
6 % Construction 5 % Electro/electronic
Ongoing recovery Robust growth


Fiscal 2012 Outlook Projects Further Growth
And Higher Earnings
Sales ∆ Fx and portfolio adjusted, EBITDA before special items

2011 ∆ vs. 2010 2012E

+~3% or
Sales €36.5bn +6%
~€37bn*

Adj. EBITDA €7.6bn +7% Slightly improve

Core EPS €4.83 +15% Slightly improve

*Assuming Fx rate of $1.40 per €
Page 8 • Bayer Investor Presentation • Meet Management • March 2012 Outlook depends on specific planning assumptions as detailed in the Annual Report

Fiscal 2012 –
Guidance By Subgroup

Expect sales to increase by low- to mid-single-digit
HealthCare percentage. Plan to slightly improve adj. EBITDA .

Expect sales to remain stable or move slightly higher, and adj.
Pharma EBITDA to approx. match prior year level.

Consumer Anticipate mid-single-digit percentage growth of sales and
Health adj. EBITDA.

Plan to grow above market and to increase sales and adj.
CropScience EBITDA by mid-single-digit percentages.

Expect sales and adj. EBITDA to remain level with prior year.
Should market develop more favorably than anticipated, we
MaterialScience expect sales and earnings to increase accordingly.
Q1’12: Expect sales to be roughly level with Q4’11 and adj.
EBITDA to be well above Q4’11 but below Q1’11.

Page 9 • Bayer Investor Presentation • Meet Management • March 2012 Outlook depends on specific planning assumptions as detailed in the Annual Report

Strategic
Priorities


Building A World-Class Innovation
Company

Portfolio Growth Productivity

 Enhance competitive  Invest in innovation  Decomplex
position capabilities structures and
processes
 Strengthen  Maximize value of
LifeSciences new product pipeline  Implement two-year
strength group restructuring
 Intensify cooperation plan
& licensing activities  Leverage competitive
advantage of new  Further adjust
 Exploit synergy TDI gas phase business processes
potential of human, technology at MaterialScience to
animal and plant ongoing
health  Realize emerging commoditization
market opportunity


Two Distinct Business Models

LifeSciences MaterialScience
 Product innovation,  Process innovation,
R&D-ratio ~11% of sales capital intensive
 COGS relatively low,  COGS high (~79%)
16%
selling & distribution 31% marketing & selling
relatively high relatively low (SAARE**
 High profitability, ~11%)
adj. EBITDA-margins  Lower profitability, adj.
23-27%* 84% EBITDA margins ~11%*
 Increasing generic 69%  Few competitors, new
competition & government entrants from Asia, Middle
intervention East
 Structural risk: approvals,  Cyclical risk: demand and
meta-analysis, product Sales Adj. EBITDA supply fluctuations
liability 2011 2011

Breakdown excl. Reconciliation
Page 12 • Bayer Investor Presentation • Meet Management • March 2012 *EBITDA before special items in % of sales, 2011
**Selling, administration and R&D

Mid-term
Targets


HealthCare –
Building Growth Momentum

Priority Target 2014

 Accelerate growth  HealthCare sales of ~€20bn

 Pharma: Successfully commercialize  Sales of ~€11.5bn
late-stage pipeline and realize  High-single to low-double-digit % EM
emerging markets (EM) opportunity growth

 Consumer Health: Aspire to become
 Sales of ~€8.5bn
world-leading OTC company

 HealthCare margin* of ≥28%
 Improve profitability  Pharma margin* of >30%
 Consumer Health margin* of ~25%

*EBITDA before special items to sales in %

CropScience –
Propelling Future Growth

Priority Target 2014 (normal market conditions)

 Above market growth  >€8bn sales

 New crop protection product sales
 Translate R&D effectively into sales
(=launched since 2006) of ~ €1.5bn
 Aspiration to grow business in-line with
 Extend BioScience footprint average of last 3 years, i.e. CAGR ~20%
p.a.

 Improve profitability  Generate adj. EBITDA* margin of ~24%

*EBITDA before special items to sales in %

MaterialScience –
Earn A Premium Over Cost of Capital

Priority Performance Targets

 Grow business (volume) above global
 Growth
GDP
 Defend #1 market positions in
 Leadership
polycarbonates and MDI
 Leverage competitive advantage of  Increase market share of TDI business
TDI gas-phase technology (2011: 23-24%*)
 CapEx (PPE) budget of €1.5-2bn until
 Closely monitor timing and necessity 2014
of capital investments  Expand Caojing, China site
 Establish world-scale facilities in Germany

 Earn a premium over cost of capital  CFRoI after reproduction > WACC

*by volume

New Incentive Scheme Reflects Business
Specific Challenges

Individual Subgroup Group
Performance + Performance + Performance

HealthCare
 Sales growth & adj.
EBITDA* margin, innovation

CropScience
Individual  Sales growth & adj.
Business EBITDA* margin; relative Core EPS
Targets performance vs. peers,
innovation

MaterialScience
 CFRoI vs. cost of capital,
process innovation


Innovation


Pharma Pipeline –
2011 - Significant Progress Achieved

Project Indication Peak Sales Status & Targets
Potential
Xarelto Cardiology / > €2bn  SPAF: launched (US, EU, others)
Anticoagulation  DVT treatment and sec. prevention: launched
 VTE prev. ORS: launched in US
 Sec. prev. ACS: filed
VEGF Trap- Ophthalmology / ≥ €1bn  Filed for wet AMD in EU and Japan
Eye Inhibition of blood  Phase III for DME and wet AMD (China)
vessel growth initiated
 Positive phase III data in CRVO
Alpharadin Oncology / ≥ €1bn  CR prostate cancer: 44% improvement of OS
Targeting of bone  Fast track designation by FDA
metastases  Filing target: mid 2012
Regorafenib Oncology / ≥ €1bn  Metastatic colorectal cancer: 29%
Oral multi-kinase improvement of OS
inhibition  Fast track designation by FDA
 Filing target: 1H 2012
SPAF: stroke prevention in atrial fibrillation; DVT: deep vein thrombosis; ORS: orthopedic surgery;
ACS: acute coronary syndrome; VTE: venous thromboembolism
AMD: age-related macular degeneration; DME: Diabetic macular edema
Page 19 • Bayer Investor Presentation • Meet Management • March 2012 CRVO: central retina vein occlusion; CR: castration refractory; OS: overall survival

Crop Protection –
Pipeline with €2bn Sales Potential

Sales in €bn from launches 2011-2015e Launches 2011–2015e*
~ 2.0 Fungicide

Seed
Treatment

Herbicide

Fungicide

Seed
Treatment
~ 0.2
Sivanto Insecticide

Peak sales
2011 potential
Triafamone Herbicide

* subject to regulatory approval

New LifeSciences’ Technologies Allow For A
Stronger Cross-Fertilization

From a species-oriented research … … to a multi-species research approach

Human Health Animal Health Plant Health Human Health Animal Health Plant Health

New Technologies

New Perspectives

Paradigm: Paradigm:
 Mammals and crops differ substantially from each  There is more common ground between mammals and
other crops than assumed before
► Strong silo mentality in research ► Growing interest of researchers in different species
(„cross fertilization“)


Opportunity
Emerging Markets


Emerging Markets –
Sales Growth Well Above Global Average
In € million, ∆% yoy Fx adjusted

FY2011 Group Sales by Region Emerging Economies
+5%
USA Emerging
+3% Economies¹
~5,100
+9% +12%
19%
~4,300

36%

+12%
+9%
~2,100
34% 11% ~1,800

Western Europe Others²
+4% +4%
Emerging Latin Eastern Africa &
Group €36,528m; +6% Asia³ America Europe Middle East
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
Page 23 • Bayer Investor Presentation • Meet Management • March 2012 ³ Emerging Asia = Asia w/o Japan, Australia, New Zealand

Emerging Markets –
All Subgroups Have Strong Foothold
FY 2011 Group sales breakdown; ∆% yoy Fx adjusted

HealthCare CropScience MaterialScience

32% 43% 42%

+10% +11% +7%
= Developed Markets = Emerging Markets1

¹ Emerging markets: Latin America; Asia/Pacific w/o Japan, Australia,
Page 24 • Bayer Investor Presentation • Meet Management • March 2012 New Zealand; Africa and Middle East incl. Turkey; Eastern Europe

All BRIC-Countries in Our Most
Important Country Portfolio
FY 2011 sales in € billion; ∆% yoy Fx adjusted
+3%
+5%

4.0

3.0
+4%

2.0 +3%

+13%
+2% +1%
1.0 +5%
+5% +10% -2%
+15% +11% +14%

*

* Greater China includes PR China, Hong Kong, Macau and Taiwan

Bayer in Greater China – Key Facts
Sales Bayer FY 2011
In € million
37%
BHC
8%
China: €2,957m €2,957m
€36,528m 58% 5%
BMS BCS

Employees Sales Development
Bayer Greater China (FTE) Bayer Greater China (in € billion)

10,924
10,001
8,350 2.9 3.0

1.9 2.1
1.8
1.5

2009 2010 2011 2006 2007 2008 2009 2010 2011

Greater China: PR China, Hongkong, Macao, Taiwan

China - A Growth Engine for Bayer
Sales Greater China in €bn

Group Sales Target 2015 Expansion in All Subgroups

~6.0bn  Well positioned to capture
opportunities in one of the world´s
fastest-growing economies
~19% p.a.

 Sales targets by subgroup:
3.0bn €bn 2011 2015e

HealthCare 1.1 ~2.5
CropScience 0.1 ~0.3
MaterialScience 1.7 ~3.0

2011 2015e


Efficiency


Restructuring Program Fully On Track

Contribution by Subgroup  Target: €800m annual cost savings by
2013

Holding & HealthCare  Reinvestment of ~50%
Admin.
~12%  One-time-charges of approx. €1bn of
~54% which €803m booked in 2010/11
 Plans include staff reductions of 4,500
€800m
€800m
~34%  2,500 new hires in growth and
innovation, particularly in emerging
markets
CropScience Measures with €543m annualized
savings already implemented by end
of 2011


Full Year 2012 –
R&D And CapEx Budgets

R&D 2012e: ~€3.0bn CapEx (PPE) 2012e: ~€1.5bn
HealthCare MaterialScience HealthCare MaterialScience
2.0bn 0.2bn 0.5bn 0.5bn
thereof
Pharma
1.5bn
8%
8% 33% 34%
CropScience
0.8bn
25%
24%

66%
67%
1%
13%
20%

Reconciliation Reconciliation CropScience
0.05bn 0.2bn 0.3bn


Appendix


Financial
Performance –
Q4 2011


4th Quarter 2011 –
Mixed Business Performance
( ) = Fx & portfolio adjusted

Q4‘10 Q4‘11 ∆% Highlights of Financial Results
€ million € million

Sales 9,012 9,191 +2 (+2)  Top-line driven by ConsumerHealth and
CropScience
EBITDA
- reported 1,510 1,415 -6  Emerging Markets sales up 5%
- adjusted* 1,689 1,541 -9
 Improvement of reported EBIT due to
EBIT
lower special charges
- reported 51 629 •
- adjusted* 1,005 844 -16  Adj. EBITDA* declined due to a sharp
Net income -145 397 • drop at MaterialScience
NCF 1,941 1,152 -41
 Net cash flow impacted by payments in
oFCF 1,417 427 -70
connection with LL Rice (€484m)
EPS
- reported -0.18 0.48 •
- core 0.95 0.97 +2


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

Q4’11 Sales Earnings
Consumer Pharma Adj. Adj.
Health 36% +1% (+1%) EBITDA* EBIT*
+5% (+5%)
1,915 2,680 1,138 1,180 +4%

771 758 -2% 772 815 +6%

541 498 -8%
367 422 +15%
HealthCare €4,595m; +3% (+2%)
231 317 +37%
Price Volume Fx Portfolio
1% 2% 0% 0%
Q4‘10 Q4‘11 Q4‘10 Q4‘11


CropScience


Environmental Crop Protection / Adj. Adj.
Science 36% BioScience EBITDA* EBIT*
-5% (-6%) +2% (+4%)
148
1,528

270 273 +1%

144 145 +1%
CropScience €1,676m; +1% (+3%)

-1% 3% 0% -1% Q4‘10 Q4‘11 Q4‘10 Q4‘11


MaterialScience

Polycarbonates Polyurethanes Adj. Adj.
-9% (-10%) 36% +5% (+5%) EBITDA* EBIT*
667 1,341
297

CAS** 420 156
0% (-1%)
168 106 -64%
IO***
+13% (+11%)

MaterialScience €2,596m; 0% (0%)
-48 •
4% -4% 0% 0% Q4‘10 Q4‘11 Q4‘10 Q4‘11

Page 36 • Bayer Investor Presentation • Meet Management • March 2012 **CAS: Coatings, Adhesives, Specialties
*** IO: Industrial Operations

Cash Flow And Net Debt Development
Cash Flow in € million, Net Debt in € billion,

Q4’11 Cash Flow Net Debt Development

GCF NCF Invest- oFCF +€25m
cont. ments
7.0 7.0

1.004 1,152 725 427

∆%
y-o-y -29 -41 +38 -70
Q3´11 Q4´11


Financial
Performance –
Fiscal 2011


Fiscal 2011 –
All Group Targets Achieved

2011 Outlook 2011 2011
Comments
original actual ∆

4-6% to  Raised to 5-7% or €36-37bn
Sales €36.5bn +6%
€35-36bn in Q1

increase
Adj.
towards €7.6bn +7%  Raised to >€7.5bn in Q1
EBITDA
€7.5bn

Increase by
Core EPS €4.83 +15%  Raised to ~15% in Q1
~10%

Net Debt reduce €7.0bn -€0.9bn  Record GCF


Fiscal 2011 –
Subgroup Performance vs. Targets

2011 Outlook 2011
in € million adj. ∆ Comments
original actual
HealthCare  Targets achieved or exceeded
Sales low/mid single-digit 17,169 +2%  Top-line driven by Consumer
increase Health
Adj. EBITDA* small improvement 4,702 +7%  Pharma margin up 140 bpts.

CropScience
≥ mid-single digit
Sales 7,255 +9%
increase  Achieved or exceeded all targets
grow at higher rate
Adj. EBITDA* 1,654 +28%
than sales
MaterialScience  Sales growth above, bottom-line
mid single-digit clearly below expectations
Sales 10,832 +8%
increase  Pressure from higher raw
grow at higher rate material prices and deteriorating
Adj. EBITDA* 1,171 -14% business environment
than sales


Bayer HealthCare
Investor Handout – Meet Management

March, 2012 – Leverkusen

Leading Positions in Key Healthcare
Markets
Sales in € million
Sales Split by Segment 2011
Pharma
€9,949m
 Leading positions in key therapeutic categories

Consumer Care 25%
€3,534m 20%
 Global #2 in OTC-pharmaceuticals
58%
Medical Care
14%
€2,500m
 #1 in fluid injection systems, #1 in contrast media,
#4 in blood glucose meters 7%

Animal Health
€1,186m
 Global #4 HealthCare €17,169m


Fiscal 2011 –
Key Financials HealthCare

In € million FY 2010 FY 2011 ∆%

Sales 16,913 17,169 +1.5
EBIT 1,861 3,191 +71.5
EBIT adjusted* 3,030 3,367 +11.1
EBITDA adjusted* 4,405 4,702 +6.7
Gross cash flow 2,948 3,254 +10.4
Net cash flow 3,320 3,357 +1.1
CapEx 605 611 +1.0
Free operating cash flow 2,747 2,749 +0.1
R&D expenses 2,066 1,948 -5.7
Capital invested (average) 23,022 22,757 -1.2
CFRoI 12.8 % 14.3 % ●

* before special items

Fiscal 2011 -
Operating Performance
Sales in € million; ∆% y-o-y, () Fx & portfolio adj.
Sales Earnings

Consumer Pharma Adjusted Adjusted
Health 0% (+1%) EBITDA* EBIT*
+4% (+5%)
25% 4,702 +7%
4,405
42%

3,367 +11%
2,832 2,972 +5% 3,030
58%

1,900 2,042 +7%

1,573 1,730 +10% 1,130 1,325 +17%
HealthCare €17,169m +1.5% (+2%)
+0.2% +2.2% -1.2% 0.3% 2010 2011 2010 2011

Page 4 • Bayer Investor Presentation • Meet Management • March 2012 * before special items

Fiscal 2011 -
Regional Sales Split
Sales in € million; ∆% y-o-y, Fx adj.

Pharmaceuticals Consumer Health

North America LA / Africa / North America LA / Africa /
-10.5% Middle East +6.0% Middle East
+11.3% 15% +8.3%
21% 17%
32%

16%

25%
37%
38%
Europe -3.5% Asia/Pacific Europe +4.8% Asia/Pacific
+11.8% +4.4%

€ 9,949m € 7,220m


Fiscal 2011 - Strong Business
Momentum in Emerging Markets
Sales in € million; ∆% y-o-y Fx adjusted

2011 HealthCare Sales Emerging Economies

USA Emerging +11%
-2% Economies¹ +13%
25% 32% +10%

23%
~1,900
+6%
~1,700
+9%
14%
~1,000
31% ~886
Western Others²
Europe -1% +4%
Emerging Latin Eastern Africa &
HealthCare €17,169m Asia³ America Europe Middle East
¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, ² Others = Japan, Australia, New Zealand, Canada
New Zealand, Africa and Middle East incl. Turkey, Eastern Europe ³ Emerging Asia = Asia without Japan, Australia, New Zealand


Bayer is One of The Leading International
HealthCare Companies in China

HealthCare 2011  Driven by Pharmaceuticals (+26% Fx-adj)
~€1bn +19% y-o-y (Fx-adj.)*
 ~1,000 sales representatives added in
2011
 Approx. 6,200 employees
 €100m over 5 years to set-up a global
R&D center in China
 Beijing manufacturing site expansion
(~€45m through 2015)
Top products growth in 2011*
 Partnership with Tsinghua University
Aspirin +35% (joint drug discovery, student support)
Adalat +24%

Nexavar +24%
Glucobay Avelox +22%
Avelox
Nexavar +19%

* People‘s Republic of China

Fiscal 2011 -
Major Progress Achieved
 First Xarelto-launches in chronic indications
 Regulatory filings for Xarelto, VEGF-Trap-Eye, LCS
Pipeline  Successful completion of major clinical studies (incl. programs
for Xarelto, Alpharadin, Regorafenib, VEGF Trap-Eye)

 Improved margins* at Pharma and Consumer Health (+140
Performance bp each)
 Above market growth at Consumer Health

 HealthCare EM-sales growth of +10%
Emerging Markets  PR China: Above market growth at Pharma (+26%)
 Expansion of marketing and sales organization

LCS: Levonorgestrel contraceptive system
Page 8 • Bayer Investor Presentation • Meet Management • March 2012 *Adjusted EBITDA
EM: Emerging markets

HealthCare -
Positioned for Future Growth

Opportunities

 4 potential blockbusters to be launched near-term

Pharma  Limited patent expiration exposure
 Strong presence in emerging markets

 Strong brands
Consumer  Leading positions in all businesses
Health  Increasing share in mature and expand in Emerging
Markets


Financial
Outlook


Market Outlook 2012

The Pharma market is expected to grow in the
mid-single-digit percentage range driven by Emerging Markets

For the OTC market we expect low-to-mid single-digit
percentage growth

The Diabetes Care market is expected to grow by a
low-single-digit percentage

Moderate growth expected in Animal Health market


Financial Outlook 2012

HealthCare

 Expect sales to increase by a low- to mid-single-digit percentage (Fx & portf.–adj.)
 Plan to slightly improve adjusted EBITDA*

Pharmaceuticals

 Expect sales to remain stable or move slightly higher (Fx & portf.–adj.)
 Expect adjusted EBITDA* to approx. match prior-year level

Consumer Health

 Anticipate mid-single digit percentage growth of sales (Fx & portf.–adj.)
 Anticipate mid-single digit percentage growth of adjusted EBITDA*

Page 12 • Bayer Investor Presentation • Meet Management • March 2012 * before special items

Building Growth
Momentum –
Pharmaceuticals


Pharma – Top 10 Products
2011 sales in € million (y-o-y changes Fx-adj.)
Betaseron 670 (-9%) 447 (0%) 1,117 -5%

Kogenate 785 (+11%) 290 (+2%) 1,075 +8%

YAZ-Family 891 (+6%) 179 (-30%) 1,070 -3%

Nexavar 551 (+3%) 174 (+5%) 725 +4%

Adalat 637 (-5%) 3 (•) 640 -5%

Mirena 268 (+6%) 313 (+15%) 581 +11%

Avelox 398 (+8%) 88 (-31%) 486 -2%

Aspirin C. 404 (+13%) 404 +13%

Glucobay 362 (+4%) 362 +4%

Levitra 227 (+7%) 105 (-51%) 332 -22%
U.S. Rest of the world


The Leader in Women’s HealthCare
Sales ∆% y-o-y, () Fx adj.

Yaz family
Women’s Healthcare 2011
-4 (-3)

Mirena +8 (+11)

Diane +6 (+7)

Microgynon -2 (-1)

Valette -3 (-2) €2,992m
Meliane -6 (-6)
+2% (+3%)
Angeliq +13 (+14)

Qlaira +67 (+69)
Other products +4 (+5)


Mirena - The Leading Hormonal Long-Acting
Contraceptive
Sales in € million; ∆% Fx adj.

+11%  Leading long-acting (up to five years)
reversible contraception device
581
 2011 growth driven by higher volumes
539 in the US
490
268
 Life-cycle opportunities:
254  Small, low-dose long-acting (up to
three years) LCS filed in the US
218 and EU in 2011
 Further phase III program for a
313 long-acting contraception LCS for
285 up to five years underway
272
 2012e sales: high-single/low-double
digit % increase
2009 2010 2011

Page 16 • Bayer Investor Presentation • Meet Management • March 2012 LCS: Levonorgestrel-releasing system

Hemophilia Franchise -
Growth Trajectory Intact

+8%
 Global # 2 in hemophilia A treatment
 Increased market share in 2011
1,075
 Development program underway
1,004
888  Longer acting factor VIII: Start of a
pivotal study targeted for 2012
 Recombinant FVIIa: Target to
785 initiate a phase II/III study in 2012
705
638
 Studies with plasma-free
formulation on track
 2012e sales: mid-single digit %
250 299 290 increase

2009 2010 2011


Betaseron - Long-term Experience in MS
Treatment

-5%
1,214 1,206
1,117

735 733  Wealth of clinical experience,
demonstrating excellent efficacy and
670
tolerability of Betaseron
 21-year long-term follow-up study
demonstrated significant survival
479 473 advantage with Betaseron treatment
447
 2012e sales: mid-to-high single-digit %
decline
2009 2010 2011


Nexavar - Our Cornerstone in Oncology
 Approved for kidney cancer (RCC) and
+4% for liver cancer (HCC)
725  Only approved drug with overall survival
benefit in HCC
705
604  Comprehensive development program
underway, including phase III trials in
 Lung cancer (NSCLC)
 Thyroid cancer
531 551
 Breast cancer
450
 RCC (adjuvant)
 HCC (adjuvant)
 HCC (combination)
154 174 174
 2012e sales: low-to-mid single-digit %
increase
2009 2010 2011
RCC: Renal cell carcinoma, HCC: Hepatocellular carcinoma,
Page 19 • Bayer Investor Presentation • Meet Management • March 2012 NSCLC: Non-small cell lung cancer

Aspirin –
More Than A Century of Growth
 One of the world’s most recognized
+10%
brands
844  Available as OTC and Rx Aspirin
776  Bayer’s #2 product in Emerging
404 Markets; over-proportional growth
715
358  Aspirin grew 35% Fx-adj. in 2011
315 in China
 2012e sales: mid-to-high single-digit %
increase (Rx-Aspirin Cardio)
440
418
400

2009 2010 2011
OTC-Aspirin Rx-Aspirin


Xarelto -
Key Features and Differentiators
 Effectively reducing the risk of stroke and systemic embolism in AF-patients

 Novel single-drug approach for DVT-treatment and sec. prevention

 Superior efficacy with no increase in bleeding in VTE prevention after
orthopedic surgery

 Convenient once-daily, fixed oral dose; no need for routine coagulation
monitoring

 Proven efficacy in the broadest range of indications tested among novel
anticoagulants

 Only novel anticoagulant to complete successful study in ACS also showing
mortality benefit

 Unique phase III program for stroke prevention in AF-patients in Japan

AF: atrial fibrillation, DVT: Deep vein thrombosis;
Page 21 • Bayer Investor Presentation • Meet Management • March 2012 VTE: Venous thromboembolism; ACS: Acute coronary syndrome

Xarelto –
Above €2bn Commercial Opportunity1
Anticoagulants sales Anticoagulants estimated treatment days
MAT 9/2011 in 2010

Other Post ACS/MI
DTI 0.73 VTE
8% treatment ~350
0.76
8% ~200
UFH 0.63 Other
7% primary
~400
0.71 ~$9.2bn prevention ~3,100m
VKA 8% 6.33
69% ~100
~2,100
LMWH

VTE prevention Stroke
after orthopedic prevention
surgery in AF
LMWHs: low molecular weight heparins, UFH: unfractionated
heparins, VKA: vitamin K antagonists, DTI: direct thrombin inhibitors
AF: atrial fibrillation, ACS: acute coronary syndrome, MI: myocardial
(incl. Pradaxa), Other antithrombotics (incl. Xarelto); MAT: Moving
infarction, VTE: venous thromboembolism
annual total
1 Subject
to approval
Page 22 • Bayer Investor Presentation • Meet Management • March 2012 Source: IMS MIDAS, GERS, FARMINFORM for sales
Bayer estimates for patient treatment days in main markets

Xarelto – Targeting A Broad Range of
Major Chronic Thromboembolic Diseases
Venous Arterial

Pulmonary embolism (PE) Stroke prevention in atrial fibrillation

● Caused by embolism of a clot ● Atrial fibrillation (AF) can cause the
that migrates to the lungs development of clots, via stasis in the
where it becomes trapped atria, which can travel to the brain
● Leading cause of in-hospital death ● AF increases stroke risk ~5-fold
● ~ 3.5 million AF-patients in the US,
Deep venous thrombosis (DVT) > 6 million in EU and > 800,000 in J
● SOC: OAC
● Thrombi (clots) are formed in the
deep veins of the leg Secondary prevention in ACS
● Risk factors include surgery,
particularly orthopedic, and age ● Acute coronary syndromes (ACS)
● High risk of recurrent events, or comprise unstable angina and MI
developing a pulmonary embolism ● The underlying cause is thrombosis
● After initial treatment, patients remain
DVT + PE = VTE at high risk
(venous thromboembolism) ● Annual cases of ACS in US, EU major
● Estimated ~ 900,000 cases/year in 5 and J estimated to be ~ 2 million
major EU countries ● SOC: antiplatelets
● SOC: LMWH followed by VKA;
Xarelto approved in Europe

LMWH: Low molecular weight heparins; SOC: Standard of care; VKA: Vitamin
Page 23 • Bayer Investor Presentation • Meet Management • March 2012 K antagonists; OAC: Oral anticoagulants; MI: Myocardial infarction

Xarelto –
Rolled-out for Success

 Launched in >110 countries for VTE prevention
following total knee/hip replacement surgery

 Launched in Europe and Canada in SPAF and DVT
treatment

 Launched in SPAF in US

 Approved for SPAF in Japan
 Filed in ACS in Europe and US (priority review)

SPAF: prevention of stroke and systemic embolism in patients with non-valvular
Page 24 • Bayer Investor Presentation • Meet Management • March 2012 atrial fibrillation, DVT: deep vein thrombosis

Xarelto in SPAF –
Global Launch Underway
Status as of March 2012

J&J: generating positive launch momentum and steady
growth; growing faster than competition in new Rx’s among
novel OACs overall; favorable formulary access across
majority of plans
Strong market uptake

Positive recommendation by SMC for SPAF, discussion with
NICE ongoing

Pricing and reimbursement discussions underway

Approved, launch planned for Q2

First weeks of sales in SPAF in-line with expectations

SPAF: prevention of stroke and systemic embolism in patients with non-valvular
Page 25 • Bayer Investor Presentation • Meet Management • March 2012 atrial fibrillation, Rx: prescription; OAC: Oral anticoagulant; SMC: Scottish
Medicines Consortium; NICE: National Institute for Health and Clinical excellence

Xarelto –
Strong Market Performance in Germany*
Sales Market Share in % Cumulated daily therapies (DDD) - all
(based on ex-manufacturer prices) dosage strengths and pack sizes at
10,0 week 7 after launch
Xarelto
1.800

Xarelto
1.600
7,5 7,2
6,8 6,8 1.400
6,2

Cumulated Daily Therpaies (000)
6,0
5,5 5,7 1.200

5,0 1.000
Pradaxa
800

600
2,5 1,8 400
1,4
200

0
calendar week 7 after launch
1/2/12 1/16/12 1/30/12 2/13/12 2/27/12

* As of March 2012

Source: IMS Health, Weekly Retail Sell-Out Data; BAYER
Page 26 • Bayer Investor Presentation • Meet Management • March 2012 Sales market share estimates based on AC market

Secondary Prevention of ACS –
Key Findings from the ATLAS Phase III Study

 16 percent relative risk reduction for cardiovascular (CV) death, stroke or
myocardial infarction in patients taking rivaroxaban

 > 30 percent reduction of risk of CV death or all cause death if rivaroxaban
(2.5 mg BID) is added to standard anti-platelet therapy

 > 30 percent reduction in stent thrombosis in patients taking rivaroxaban

 More TIMI major bleeding in the rivaroxaban groups (up to 2.4% in the 5mg
BID group) compared to placebo (0.6%)

 No excess risk of fatal intracranial hemorrhage or fatal bleeding associated
with rivaroxaban compared to placebo

ACS: Acute coronary syndrome,
Page 27 • Bayer Investor Presentation • Meet Management • March 2012 BID: twice daily

EINSTEIN PE – Study Design
The EINSTEIN PE study addresses the treatment of pulmonary embolism
(PE) and the secondary prevention of venous thromboembolism (VTE) using
oral rivaroxaban alone vs. standard therapy (LMWH followed by VKA)
● Randomized, open-label, event-driven, non-inferiority study

Treatment period: 3, 6 or 12 months*

Day 1 Day 21

30-day observation
Rivaroxaban Rivaroxaban
N=4,833
Objectively

period
15 mg bid 20 mg od
confirmed PE ± R
DVT Enoxaparin 1.0 mg/kg bid for ≥5 days, followed by
VKA, INR range 2–3
*Decision to treat for 3, 6 or 12 months made by investigator at time of randomization; up to 48 hours pre-
treatment with heparins/fondaparinux permitted before study entry

LMWH: Low molecular weight heparin; VKA: Vitamin K antagonist; DVT:
Page 28 • Bayer Investor Presentation • Meet Management • March 2012 Deep vein thrombosis; R: Randomization: PE: Pulmonary embolism;
INR: International normalized ratio

Xarelto –
Major Expected Upcoming Newsflow

 EINSTEIN PE Phase III data presentation at ACC, March 26, 2012

 Secondary prevention of ACS – approval expected summer 2012
(US) and end 2012 (EU)


Building Growth
Momentum –
Consumer Health


Consumer Health Businesses –
A Highly Attractive Part of Our Portfolio
Attractive Sustainable Consumer Financially
underlying trends brands centered attractive

 Aging population  Less patent  Evolution from  Predictable cash
and increasing dependent “passive patient” flow
life expectancy to “pro-active
 Less R&D and  Attractive
consumer”
 Emerging capital intensive growth potential
markets: OTC  Consumer
 Strong  Consistent,
growth due to expertise
consumer attractive
accessibility and becoming a
brands have returns at
lower cost required
attractive long modest risk
competency for
lifetimes
success


Consumer Care –
Gained Share in 2011
Sales in € million; ∆% Fx & portfolio adj.

+7%

3,534
3,371
3,020 3,080

2,634
2,531
Performance
 Global #2 in a growing market
 Track record of performance
 Some of the world’s most recognized
brands
 Acquired Roche OTC, Citracal, Sagmel
and Topsun
2006 2007 2008 2009 2010 2011


Consumer Care –
Strong Brands Matter
Brand 2011 Sales y-o-y Growth

440* +9%

285 +9%

235 +11%

224 +7%

174 +2%

140 +4%

* Only Aspirin CC sales, excluding Rx Aspirin Cardio

Radiology & Interventional – Combining
Medrad and Diagnostic Imaging
Highlights
+2%
Medrad:
1,474 1,498
1,371* 1,363
 Clear #1
1,298 1,323
 Active in fluid injection systems for
contrast media and endovascular devices
 Business strengthened around strategic
core through adjacent acquisitions of
Possis (thrombectomy) and Pathway
(mechanical atherectomy)
Diagnostic Imaging:
 Clear market leader in contrast media

 Synergy creation through integration
underway
2006 2007 2008 2009 2010 2011

* pro forma sales

Diabetes Care –
Global Player in Blood Glucose Meters

+2%

1,000 993 1,002
934 956

810
Performance
 Global #4 in blood glucose meters
 Latest innovation products include
CONTOUR™ USB meter with
 Plug & play technology for instant access to
patterns and trends
 Patients can share data with their healthcare
professional

2006 2007 2008 2009 2010 2011


Animal Health – A Top Player in an Attractive
Market

+5%

1,186
1,120

956 963 977 Performance
905
 Global #4 in a growing market
 Ranked #3 in companion animal
products (CAP)
 #5 in food animal products (FAP)
 Outpaced the market – in the majority of
last years
 Industry leading profitability
2006 2007 2008 2009 2010 2011  Successful integration of Bomac


Meet Management 2012 Investor Handout

Meet Management 2012 Investor Handout

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