Meet Management 2013 Investor Day on March 19, 2013 in Leverkusen Investor Handout

1. Meet Management 2013
Leverkusen, March 19, 2013
Investor Handout

2. 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 2013

3. Our Mission –
Innovation and Customer Value
Science For A Better Life
Science / Innovation Better Life
 Bayer is an innovation company  Bayer products improve
the quality of people’s lives
 With a strong “innovation portfolio”
 Bayer has an excellent understanding
 Addressing new growth areas
of human, animal and plant health,
 Capable of identifying and using as well as of high-quality materials
breakthrough innovations
 Respect for people and nature
 Bayer is innovative in many ways: is an essential part of our values
Products, technologies, processes,
business models, strategies
Page 1 • Bayer Investor Presentation • Meet Management • March 2013

4. Our Business Portfolio –
Leading in Its Markets
€18.6bn HealthCare
Pharmaceuticals €10.8bn,
leading positions in core indications
22%
Consumer Health €7.8bn,
OTC pharmaceuticals, blood glucose
meters, contrast media and veterinary
48% medicines, global #2-5
30% €8.4bn CropScience
Chemical crop protection & biologicals,
global #2, seeds & traits
€11.5bn MaterialScience
Sales 2012: €39.8bn Polyurethanes and polycarbonates,
global #1/2
Break-down excluding reconciliation
Page 2 • Bayer Investor Presentation • Meet Management • March 2013

5. We are Generating the Vast Majority of our
Business in the Life Sciences
Breakdown excluding Reconciliation
Sales 2012 Adj. EBITDA 2012*
Material Human Material
Science Health Science
45% Life
Sciences
30% 85% 15%
3%
22% Animal
Health
Plant Health
*EBITDA before special items
Page 3 • Bayer Investor Presentation • Meet Management • March 2013

6. Full Year 2012: Significant
Strategic and Operational
Progress
Page 4 • Bayer Investor Presentation • Meet Management • March 2013

7. Full Year 2012 –
Very Good Year, Operational Targets Achieved
Sales EBIT EBITDA Core EPS
in € million before special items
% currency & portfolio adj. in € million in € million in €
39,760 8,284
36,528 7,613
5,35
4,83
4,149
3,960
FY’11 FY’12 FY’11 FY’12 FY’11 FY’12 FY’11 FY’12
+5% -5% +9% +11%
Page 5 • Bayer Investor Presentation • Meet Management • March 2013

8. Full Year 2012 –
All Subgroups With Higher Sales and Earnings
Sales & adj. EBITDA (=before special items) in € million, sales ∆% y-o-y Fx and portfolio adjusted
Sales Adj. EBITDA
18,612 5,068
HealthCare
+4% +8%
10,803 3,203
Pharma
+4% +8%
Consumer 7,809 1,865
Health +4% +8%
8,383 2,008
CropScience +12% +21%
11,503 1,251
MaterialScience +3% +7%
Page 6 • Bayer Investor Presentation • Meet Management • March 2013

9. Full Year 2012 –
Continued Strong Emerging Markets Growth
In € million, ∆% yoy Fx adjusted
2012 Group Sales Highlights Emerging Economies
Developed Emerging  +12% driven mainly by our
Economies Economies¹ BRIC LifeScience businesses
+3% +7%
 +13% with HealthCare +23%
and CropScience +20%
63% 37%  +16% driven by CropScience,
but also MaterialScience strong
 +19% with both Consumer Health
and MaterialScience +25%
 +8% driven by CropScience
Group €39,760m; +5% and MaterialScience
¹ Emerging economies include: Latin America, Asia w/o Japan, Australia,
Page 7 • Bayer Investor Presentation • Meet Management • March 2013 New Zealand, Africa and Middle East incl. Turkey, Eastern Europe

10. Workforce in the Emerging Markets
Consistently Increased
Breakdown FTE figures in 1,000 as of Dec 31
31.2 35.1 36.5 39.8
111.0 111.4 111.8 110.5  Net reduction in total workforce by
~500 during last 4 years
 Net increase of workforce in
65% 64% 63% 62% Emerging Countries (~3,200),
especially in Emerging Asia
 Concurrent workforce decline in
Western Europe and North America
35% 36% 37% 38% Initiated shift of workforce in line
with business to Emerging Markets
2009 2010 2011 2012
Emerging Economies Developed Economies Sales in €bn
Page 8 • Bayer Investor Presentation • Meet Management • March 2013

11. Full Year 2012 – Important Progress on Key
Pharma Pipeline Assets
2012 sales of €322m above target following further launches
and indication expansions
Encouraging early feedback from first launches
Positive feedback from commercial launch in the US,
received US approval for GIST in Feb. 2013
Radium-223 Submitted for treating bone metastases in patients with
dichloride CRPC (Dec. 2012)
Demonstrated efficacy in PAH and CTEPH in pivotal phase
III trials, submitted (Feb. 2013)
Combined peak sales potential of >€5.5bn
CRPC: Castration resistant prostate cancer; PAH: Pulmonary arterial hypertension,
Page 9 • Bayer Investor Presentation • Meet Management • March 2013 CTEPH: Chronic thromboembolic pulmonary hypertension;
GIST: Gastrointestinal cancer

12. Innovations at CropScience
Fungicides Seeds
Cereals Numerous new vegetable
varieties
Corn and soybeans
Fruits & vegetables New canola varieties with
improved agronomic traits
Herbicides
Perennial crops New soybean varieties
IVM and turf segment
Conventional oilseed rape
SeedGrowth for Europe
Protects against nematodes New cotton varieties
Proprietary glyphosate
Protects against fungus
tolerance
Rhizoctonia
IVM: Integrated vegetation management
Page 10 • Bayer Investor Presentation • Meet Management • March 2013

13. Full Year 2012 –
Dividend Proposal
2007-2012* Dividend Policy
6
 Target is to pay out 30 to 40% of
5 core EPS
 Successive history of dividend
4 payment for 60 years
3  Proposed dividend of €1.90 for 2012
up 15% vs. prev. year
1.90#
2
1.50
1.65  Proposal corresponds to a payout
1.35 1.40 1.40
of 2012 core EPS of 36% or
1 €1,571m
0
2007 2008 2009 2010 2011 2012
EPS (IFRS) Core EPS Dividend per share
*in Euro per share
Page 11 • Bayer Investor Presentation • Meet Management • March 2013 #proposed dividend

14. Priorities, Targets, Aspirations
Page 12 • Bayer Investor Presentation • Meet Management • March 2013

15. Full Year 2013 Outlook Projects Further
Growth And Higher Earnings
Sales ∆ Fx and portfolio adjusted, EBITDA before special items
2012 ∆ vs. 2011 2013E
+4-5% to
Sales €39.8bn +5%
~€41bn*
mid-single-digit %
adj. EBITDA €8.3bn +9%
increase
high-single-digit %
Core EPS €5.35 +11%
increase
*Assuming Fx rate of $1.29 per €
Page 13 • Bayer Investor Presentation • Meet Management • March 2013 Outlook depends on specific planning assumptions as detailed in the Annual Report

16. Full Year 2013 –
R&D And CapEx Budgets
R&D 2013e: ~€3.2bn (+7%) CapEx (PPE) 2013e: ~€1.9bn (+24%)
HealthCare MaterialScience HealthCare MaterialScience
~€2.1n ~€0.2bn ~€0.6bn ~€0.6bn
thereof
Pharma 7%
~€1.7bn
CropScience
28%
~€0.8bn 32%
26%
65% 14%
2%
Reconciliation
25%
~€0.1bn
Reconciliation CropScience
~€0.3bn ~€0.5bn
Page 14 • Bayer Investor Presentation • Meet Management • March 2013

17. HealthCare –
Building Growth Momentum, Improving Margins
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
Target Aspiration
Priority 2012
2013* 2015
mid-single-digit CAGR ~6%
 HealthCare: Accelerate sales growth €18.6bn
% to ~€19bn towards €22bn
 Pharma: Successfully commercialize new CAGR ~7%
€10.8bn mid-single-digit
products and realize emerging markets % to ~€11bn towards €13bn
(EM) opportunity
 New product sales¹ €368m ~€1bn >€2.5bn
 EM growth 7.5% high-single high-single
digit % digit %
 Consumer Health: Aspire to become #1 mid-single-digit
€7.8bn ~€9bn
OTC company % to ~€8bn
 HealthCare: Improve margins 27.2% slightly up towards 29%
 Pharma 29.6% slightly up ≥31%
 Consumer Health 23.9% at level ~25%
¹ Xarelto, Eylea, Stivarga, Radium-223 dichloride and Riociguat; subject to regulatory approval
Page 15 • Bayer Investor Presentation • Meet Management • March 2013 *Assuming Fx rate of $1.29 per €
Outlook depends on specific planning assumptions as detailed in the Annual Report

18. Pharma – New Products Drive Growth and
Rejuvenate Portfolio
Sales from new Pharma pipeline in €m
>2,500  Global roll-out ongoing, targeting ~€600m sales in
2013
Xarelto 322
Eylea 14
 Global roll-out in wAMD, first launches in CRVO
Stivarga 32 expected during H2 2013
 US launch ongoing, CHMP opinion expected
~1,000
1H 2013, Japan submitted July 2012
Radium-223 dichloride
 Regulatory decision in the US expected for
368
2H 2013 (filed Dec. 2012)
86
 Submitted for PAH and CTEPH (Feb. 2013)
2011 2012 2013e 2015e
CTEPH: chronic thromboembolic pulmonary hypertension; CRVO: central retinal
Page 16 • Bayer Investor Presentation • Meet Management • March 2013 vein occlusion; PAH: pulmonary arterial hypertension;
wAMD: wet age-related macular degeneration

19. CropScience – Above Market Growth at
Benchmark Profitability
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
Target Aspiration
Priority 2012
2013* 2015
high-single CAGR ~6%
+12.4%
 Above-market sales growth digit % towards
to €8.4bn
towards €9bn €10bn
 Translate R&D effectively into new
€1.1bn ~€1.4bn ~€1.9bn
product sales (CP products launched since 2006)
double-digit % double-digit %
 Extend seeds footprint +14%
growth growth p.a.
slight
 Maintain industry leading profitability level 24.0% ~24%
improvement
CP: Crop Protection
Page 17 • Bayer Investor Presentation • Meet Management • March 2013 *Assuming Fx rate of $1.29 per €
Outlook depends on specific planning assumptions as detailed in the Annual Report

20. CropScience – Translate R&D Effectively
into New Product Sales
Sales from new Crop Protection
products launched since 2006 in €bn
~1.9 2012 Highlights
∆% y-o-y, () Fx adj.
 Xpro (+61%) - New cereal fungicide with
yield-boosting effect
~1.4  Adengo herbicide family (+85%) -
Excellent weed control in corn and cereals,
1.1 also in case of glyphosate resistance
+60%
 Belt (+54%) - Broad-spectrum insecticide
0.7 with fast and long-lasting action
 Launch of Luna fungicide in the US
0.3  First launch of new SeedGrowth family
EverGol/Emesto in Canada
0.02
2007 2009 2011 2012 2013e 2015e
Page 18 • Bayer Investor Presentation • Meet Management • March 2013

21. MaterialScience – Higher Asset Utilization &
Efficiency Measures Are Driving Performance
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
 Grow business (volume)
above global GDP
 Defend market leading
positions in PCS and PUR
 Sales to slightly increase  Realize 150 bp margin
to ~€12bn contribution through new
 Sales +3.0% to €11.5bn  Adj. EBITDA to further efficiency initiative
(volumes +2%)  Optimize asset structure
improve
 Adj. EBITDA +7% to  Q1‘2013 vs Q4‘2012: in Germany
€1,251m Sales to further increase  CFROI# > WACC
 CFROI# 5.6% < WACC and adj. EBITDA at same
7.1% level
2012 Target 2013 Aspiration 2015
*Assuming Fx rate of $1.29 per €
Page 19 • Bayer Investor Presentation • Meet Management • March 2013 #after reproduction
Outlook depends on specific planning assumptions as detailed in the Annual Report

22. Appendix
Page 20 • Bayer Investor Presentation • Meet Management • March 2013

23. Q4 2012 –
Cash Flow and Net Debt Development
Cash Flow in € million, Net Debt in € billion
Q4’12 Cash Flow Net Debt Development
GCF NCF Invest- oFCF +€223m 7.0
cont. ments 6.8
755 903 743 160
∆%
y-o-y -25 -22 +2 -63
Q3´12 Q4´12
 Net debt increase of €1bn due to pension funding, partly offset
by positive cash generation
Page 21 • Bayer Investor Presentation • Meet Management • March 2013

24. Q4 2012 –
HealthCare
In € million, ∆% yoy, () = Fx & portf. adjusted
Q4’12 Sales Earnings
Consumer Adj. Adj.
36% Pharma
Health EBITDA* EBIT*
+7% (+5%)
+7% (+5%)
2,056 2,867
1,342 +14%
1,180
1,001 +23%
827
+9% 815
758
594 +19%
498
515 +22%
HealthCare €4,923m; +7% (+5%) 422 407 +28%
317
Price Volume Fx Portfolio
0% +5% +2% 0% Q4‘11 Q4‘12 Q4‘11 Q4‘12
*before special items
Page 22 • Bayer Investor Presentation • Meet Management • March 2013

25. Q4 2012 –
CropScience
In € million, ∆% yoy, () = Fx & portf. adjusted
Q4’12 Sales Earnings
Environmental Crop Protection Adj. Adj.
Science +12% (+11%) EBITDA* EBIT*
+18% (+16%) 174
1,540
142 289 +6%
273
162 +12%
145
Seeds
-10% (-11%)
CropScience €1,856m; +11% (+9%)
Price Volume Fx Portfolio
0% +9% +2% 0% Q4‘11 Q4‘12 Q4‘11 Q4‘12
*before special items
Page 23 • Bayer Investor Presentation • Meet Management • March 2013

26. Q4 2012 –
MaterialScience
In € million, ∆% yoy, () = Fx & portf. adjusted
Q4’12 Sales Earnings
Polycarbonates Polyurethanes Adj. Adj.
0% (-3%) +11% (+9%) EBITDA* EBIT*
1,473 255 +141%
669
CAS**
+3% (+5%) 451
106
93 +294%
IO*** 168
0% (-1%)
MaterialScience €2,761m; +6% (+5%)
Q4‘11
Price Volume Fx Portfolio
Q4‘11 Q4‘12 Q4‘12
+2% +3% +2% -1%
-48
*before special items
Page 24 • Bayer Investor Presentation • Meet Management • March 2013 **CAS: Coatings, Adhesives, Specialties
*** IO: Industrial Operations

27. Q4 2012 –
Regional Performance
In € million, ∆% yoy Fx adjusted
Q4’12 Group Sales by Region Emerging Economies
+14%
Emerging +7%
USA ~1,560
Economies¹
+5% ~1,420
+9%
20%
40%
+12%
30%
Western ~520 -1%
10% Others²
Europe
+2% ~460
+1%
Group €9,862m; +5%
Emerging Latin Eastern Africa &
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
Page 25 • Bayer Investor Presentation • Meet Management • March 2013 ² Others = Japan, Australia, New Zealand, Canada
³ Emerging Asia = Asia w/o Japan, Australia, New Zealand

28. Full Year 2012 –
Cash Flow and Net Debt Development
Cash Flow in € million, Net Debt in € billion
2012 Cash Flow Net Debt Development
GCF NCF Invest- oFCF 7.0 +€15m 7.0
cont. ments
4,599 4,532 1,929 2,603
∆%
y-o-y -11 -10 +19 -24
FY´11 FY´12
 Net debt constant, despite €1bn pension funding in Q4’2012
Page 26 • Bayer Investor Presentation • Meet Management • March 2013

29. Full Year 2012 –
HealthCare
In € million, ∆% yoy, () = Fx & portf. adjusted
2012 Sales Earnings
Consumer Adj. Adj.
36% Pharma
Health EBITDA* EBIT*
+9% (+4%)
+8% (+4%)
7,809 10,803
5,068 +8%
4,702
3,736 +11%
3,203 +8% 3,367
2,972
2,298 +13%
2,042
1,865 +8%
HealthCare €18,612m; +8% (+4%) 1,730 1,438 +9%
1,325
Price Volume Fx Portfolio
0% +4% +4% 0% FY‘11 FY‘12 FY‘11 FY‘12
*before special items
Page 27 • Bayer Investor Presentation • Meet Management • March 2013

30. Full Year 2012 –
CropScience
In € million, ∆% yoy, () = Fx & portf. adjusted
2012 Sales Earnings
Environmental Crop Protection Adj. Adj.
Science +16% (+13%) EBITDA* EBIT*
+9% (+5%) 680
6,741
962 2,008 +21%
1,654
1,526 +31%
Seeds 1,168
+17% (+14%)
CropScience €8,383m; +16% (+12%)
Price Volume Fx Portfolio
+1% +12% +4% -1% FY‘11 FY‘12 FY‘11 FY‘12
*before special items
Page 28 • Bayer Investor Presentation • Meet Management • March 2013

31. Full Year 2012 –
MaterialScience
In € million, ∆% yoy, () = Fx & portf. adjusted
2012 Sales Earnings
Polycarbonates Polyurethanes Adj. Adj.
-2% (-7%) +12% (+8%) EBITDA* EBIT*
5,995
2,823 1,251 +7%
1,171
CAS** 629 +7%
+3% (+4%) 1,972 589
IO*** 713
+8% (+6%)
MaterialScience €11,503m; +6% (+3%)
Price Volume Fx Portfolio
FY‘11 FY‘12 FY‘11 FY‘12
+1% +2% +4% -1%
*before special items
Page 29 • Bayer Investor Presentation • Meet Management • March 2013 **CAS: Coatings, Adhesives, Specialties
*** IO: Industrial Operations

32. Full Year 2012 –
Regional Performance
In € million, ∆% yoy Fx adjusted
2012 Group Sales by Region Emerging Economies
+5%
USA Emerging
+9% Economies¹
~5,700
+7% +12%
21%
~4,900
37%
+10%
~2,400 0%
31% ~1,800
11%
Western Europe Others²
0% +4%
Emerging Latin Eastern Africa &
Group €39,760m; +5% 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
Page 30 • Bayer Investor Presentation • Meet Management • March 2013 ² Others = Japan, Australia, New Zealand, Canada
³ Emerging Asia = Asia w/o Japan, Australia, New Zealand

33. Bayer HealthCare
Investor Handout – Meet Management
March 2013 – Leverkusen

34. Leading Positions in Key Healthcare
Markets
Sales Split by Segment 2012
Pharma
€10,803m
 Leading positions in key therapeutic categories
25% Consumer Care
21% €3,853m
 Global #2 in OTC-pharmaceuticals
58%
Medical Care
14% €2,653m
 #1 in fluid injection systems, #1 in contrast media,
7% #4 in blood glucose meters
Animal Health
€1,303m
HealthCare €18,612m  Global #5, #2 in parasiticides
Page 32 • Bayer Investor Presentation • Meet Management • March 2013

35. Full Year 2012 –
Growth in All Segments
In € million, ∆% yoy, () = Fx & portf. adjusted
2012 Sales Earnings
Consumer Adj. Adj.
36% Pharma
Health EBITDA* EBIT*
+9% (+4%)
+8% (+4%)
7,809 10,803
5,068 +8%
4,702
3,736 +11%
3,203 +8% 3,367
2,972
2,298 +13%
2,042
1,865 +8%
HealthCare €18,612m; +8% (+4%) 1,730 1,438 +9%
1,325
Price Volume Fx Portfolio
0% +4% +4% 0% 2011 2012 2011 2012
*before special items
Page 33 • Bayer Investor Presentation • Meet Management • March 2013

36. Full Year 2012 – Strong Business
Momentum in Emerging Markets
Sales in € million; ∆% y-o-y Fx adjusted
2012 HealthCare Sales Emerging Economies
USA Emerging
+6% +12% +8%
Economies¹
25% +8%
24% 33%
~2,100 ~2,100
+9%
+1%
29% 14%
~1,100
~900
Western Others²
Europe -1% +1%
Emerging Latin Eastern Africa &
HealthCare €18,612m 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
Page 34 • Bayer Investor Presentation • Meet Management • March 2013

37. Bayer is One of The Leading International
HealthCare Companies in China
Sales in € million; ∆% y-o-y Fx adjusted
HealthCare 2012  Driven by Pharmaceuticals (+21% Fx-adj)
~€1.5bn +21% y-o-y (Fx-adj.)
 ~1,500 sales representatives added since
2011
 Improved presence in lower-tier cities in
2012: Bayer has presence in all tier 1-4
cities and in a substantial number of tier 5
cities
 €100m over 5 years to set-up a global
Top products growth in 2012
R&D center in China
Aspirin +39%
Ultravist +29%  Beijing manufacturing site expansion
+26%
(~€45m through 2015)
Adalat
Nexavar +17%  Partnership with Tsinghua University
Avelox Avelox +17%
(joint drug discovery, student support)
Glucobay +12%
Page 35 • Bayer Investor Presentation • Meet Management • March 2013

38. Full Year 2012 – Outstanding Clinical and
Regulatory Progress
 Launch in SPAF  Positive phase III-data in PAH and CTEPH
 Positive phase III-data in EINSTEIN PE  Filed for PAH and CTEPH in Feb‘13
 Approval/launch in PE/DVT-treatment (US)
 Approval/launch in PE-treatment (EU) Radium-223 dichloride
 US and EU filings in mCRPC
 First launches in wAMD
Women‘s Healthcare
 Filings for CRVO  Flexyess: successful conclusion of EU
registration
 Phase III-data for LNG-IUS12 and LNG-IUS16
 Jaydess: successful conclusion of EU
registration
 US-launch in mCRC (2012) and mGIST (Feb. 2013) Hemophilia
 Positive phase III-data in mCRC  Initiation of phase III for longer-acting rFVIII
 Positive phase III-data in GIST (BAY 94-9027) and phase II/III for rFVIIa
 Filings in GIST and mCRC (BAY86-6150)
SPAF: stroke prevention in atrial fibrillation; PE: pulmonary embolism; DVT: deep vein thrombosis; wAMD: wet age
related macula degeneration; CRVO: central retinal vein occlusion; mCRC: metastatic colorectal cancer: GIST:
Page 36 • Bayer Investor Presentation • Meet Management • March 2013
gastrointestinal stromal rumors; PAH: pulmonary arterial hypertension; CTEPH: chronic thromboembolic pulmonary
hypertension;mCRPC: metastatic castration resitant prostate cancer

39. Top 10 Pharma Product Performance
in 2012
FY 2012 sales in € million (∆% yoy Fx-adj.)
Betaseron Multiple Sclerosis 1,216 +4%
Kogenate Hemophilia A 1,182 +5%
YAZ-family Contraception 1,045 -5%
792 +4%
Nexavar Cancer
Mirena Contraception 677 +9%
Adalat Hypertension -2%
670
Antiinfective 486 -5%
Avelox
Aspirin C. MI prevention 476 +12%
Glucobay Diabetes 408 +4%
Xarelto Anticoagulation 322 +266%
MI: Myocardial infarction
Page 37 • Bayer Investor Presentation • Meet Management • March 2013

40. Consumer Health –
Best-Selling Products in 2012
FY 2012 sales in € million (∆% yoy Fx-adj.)
722 +9%
495 +11%
494* +1%
324 -1%
323 +5%
269 +14%
250 +8%
209 +27%
196 +4%
174 -12%
* Only Aspirin CC sales, excluding Rx Aspirin Cardio
Page 38 • Bayer Investor Presentation • Meet Management • March 2013

41. Building Growth Momentum –
Improving Margins
Page 39 • Bayer Investor Presentation • Meet Management • March 2013

42. HealthCare –
Building Growth Momentum, Improving Margins
Sales ∆ Fx & portf. adjusted, margin = EBITDA before special items to sales
Target Aspiration
Priority 2012
2013* 2015
mid-single-digit CAGR ~6%
 HealthCare: Accelerate sales growth €18.6bn
% to ~€19bn towards €22bn
 Pharma: Successfully commercialize new CAGR ~7%
€10.8bn mid-single-digit
products and realize emerging markets % to ~€11bn towards €13bn
(EM) opportunity
 New product sales¹ €368m ~€1bn >€2.5bn
 EM growth 7.5% high-single high-single
digit % digit %
 Consumer Health: Aspire to become #1 mid-single-digit
€7.8bn ~€9bn
OTC company % to ~€8bn
 HealthCare: Improve margins* 27.2% slightly up towards 29%
 Pharma 29.6% slightly up ≥31%
 Consumer Health 23.9% at level ~25%
¹ Xarelto, Eylea, Stivarga, Radium-223-Dichloride and Riociguat; subject to regulatory approval
Page 40 • Bayer Investor Presentation • Meet Management • March 2013 *Assuming Fx rate of $1.29 per €
Outlook depends on specific planning assumptions as detailed in the Annual Report

43. The Leader in Women’s HealthCare
Sales ∆% y-o-y, () Fx adj.
Yaz family
Women’s Healthcare 2012
-2 (-5)
Mirena +17 (+9)
Diane +7 (+5)
Microgynon 0 (-1)
Valette -31 (-31) €3,154m
Meliane -8 (-8)
+5% (+2%)
Angeliq +6 (+4)
Qlaira +37 (+35)
Other products +13 (+10)
Page 41 • Bayer Investor Presentation • Meet Management • March 2013

44. Mirena – The Leading Hormonal Long-
Acting Contraceptive
Sales in € million; ∆% Fx adj.
 Intrauterine device, containing
677 levonorgestrel, for reversible long-term
+9%
contraception
581  Life-cycle opportunities:
539
490 292  Small low-dose long-acting (up to 3
years) device:
268
254  Jaydess: successful conclusion
218
of EU registration
 Skyla: US-launch in Feb. 2013
 Phase III for a long-acting (up to 5
385 years), low-dose, small contraception
285 313
272 device underway
 2013 sales target: high-single to low-
double-digit % increase
2009 2010 2011 2012
US Rest of the world
Page 42 • Bayer Investor Presentation • Meet Management • March 2013

45. Hemophilia Franchise –
Stable Growth
Sales in € million; ∆% Fx adj.
 Global # 2 in hemophilia A treatment
+5% 1,182  Competitive development program in
1,075 hemophilia underway:
1,004
 Phase III with long-acting Factor
888
VIII (BAY 94-9027)
850
785  Phase III with product from
705 plasma-free process (BAY 81-
638 8973)
 Phase II/III with modified
recombinant Factor VIIa (BAY 86-
332 6150)
250 299 290
 2013 sales target: low-single-digit %
increase
2009 2010 2011 2012
US Rest of the world
Page 43 • Bayer Investor Presentation • Meet Management • March 2013

46. Betaseron – Long-term Experience in
Multiple Sclerosis Treatment
Sales in € million; ∆% Fx adj.
 First interferon launched in multiple
sclerosis, introduced in 1993
1,214 1,206 +4% 1,216  Wealth of clinical experience
1,117
 Demonstrating excellent efficacy and
tolerability
638
735 733
670  21-year long-term follow-up study
demonstrated significant survival
advantage with Betaseron treatment
 2013 sales target: high-single-digit %
578 decline
479 473 447
2009 2010 2011 2012
US Rest of the world
Page 44 • Bayer Investor Presentation • Meet Management • March 2013

47. Nexavar –
Our Cornerstone in Oncology
Sales in € million; ∆% Fx adj.
 Approved for kidney cancer (RCC)
+4% 792 and for liver cancer (HCC)
705 725  Only approved drug with overall
survival benefit in HCC
604
 Positive phase III data in radioactive
iodine refractory differentiated thyroid
588
531 551 cancer (DECISION-trial)
450  Phase III trials in:
 Breast cancer
 RCC (adjuvant)
 HCC (adjuvant)
154 174 174 204  2013 sales target: mid-single-digit %
increase
2009 2010 2011 2012
US Rest of the world
Page 45 • Bayer Investor Presentation • Meet Management • March 2013

48. Nexavar –
Design of the DECISION Phase III Study
Locally Advanced, Sorafenib 400 mg bid
Metastatic Primary
RAI-Refractory randomisation endpoint:
Differentiated PFS
Thyroid Cancer Placebo
Primary endpoint: Progression-free survival (PFS)
Secondary endpoints (selection): Overall survival, time to progression,
response rate, disease control rate
Total number of patients enrolled: 419
● Study met primary endpoint
● Data to be presented at an upcoming scientific meeting
● Submission planned for 2013
RAI: radioactive iodine
Page 46 • Bayer Investor Presentation • Meet Management • March 2013 bid: twice a day

49. Aspirin –
More Than A Century of Growth
Sales in € million; ∆% Fx adj.
 One of the world’s most recognized
brands
+6% 970
 Available as OTC and Rx Aspirin
875
776  Bayer’s #1 product in Emerging
715 476 Markets
404  Aspirin grew 17% in 2012 in the
358
315 Emerging Markets
 Aspirin grew 39% in 2012 in
China
471 494
400 418
2009 2010 2011 2012
Rx-Aspirin OTC-Aspirin
Page 47 • Bayer Investor Presentation • Meet Management • March 2013

50. New Products Drive Growth
and Rejuvenate Portfolio
Page 48 • Bayer Investor Presentation • Meet Management • March 2013

51. New Product Pipeline Strength
Combined* Peak Sales Potential >€5.5bn
VEGF Trap- Radium-223
Rivaroxaban Regorafenib Riociguat
Eye dichloride
Radium-223
dichloride
2011 2012 2012 2013e 2014e
First launches in first / main indication*
*Combined peak sales potential for Xarelto, Stivarga, Eylea, Radium-223 dichloride
Page 49 • Bayer Investor Presentation • Meet Management • March 2013 and Riociguat assuming approvals and launches planned

52. Xarelto –
Strong Launch
Execution
Page 50 • Bayer Investor Presentation • Meet Management • March 2013

53. Xarelto –
Effective Anticoagulation For More Patients
1) Clinical
 Breadth of indications: met or exceeded primary
efficacy endpoint in 11/11 phase III studies
 Phase III trial initiated for the secondary prevention of myocardial
infarction and death in patients with coronary or peripheral artery
disease
2) Regulatory
 Filed for secondary prevention of ACS in Europe and US (Complete Response Letter
March 2013)
3) Marketing
 VTE prevention following total knee/hip replacement surgery
 Stroke prevention in patients with atrial fibrillation (SPAF)
 Treatment of DVT, PE and to reduce the risk of recurrent DVT and PE
Peak sales potential > €2bn
SPAF: prevention of stroke and systemic embolism in patients with non-
Page 51 • Bayer Investor Presentation • Meet Management • March 2013 valvular atrial fibrillation; DVT: deep vein thrombosis; VTE: venous
thromboembolism; ACS: acute coronary syndrome

54. The Market for Anticoagulants is
Attractive
Anticoagulants sales Anticoagulants estimated treatment
(MAT 9/2012) days in m (MAT 9/2012)
Other Post ACS/MI
DTI VTE
10% treatment ~360
15% ~200
UFH 62%
6% LMWH Other
primary ~420
~$10.7bn prevention
~3,300m
VKA 7%
~100
~2,200
VTE prevention
after orthopedic
Stroke
surgery
prevention
LMWHs: low molecular weight heparins in AF
UFH: unfractionated heparins AF: atrial fibrillation
VKA: vitamin K antagonists VTE: venous thromboembolism
DTI: direct thrombin inhibitors (incl. dabigatran) ACS: acute coronary syndrome
Other antithrombotics (incl. Xarelto®) MI: myocardial infarction
Source: IMS MIDAS, GERS, FARMINFORM for sales
Page 52 • Bayer Investor Presentation • Meet Management • March 2013 Bayer estimates for patient treatment days in main markets

55. Xarelto –
Strong Launch Execution
Sales in € million; ∆% Fx adj.
131
 Exceeded 2012 sales target
 Sales 2012: €322m
 Sales advanced strongly in all regions
following further product launches and
81
109 indication expansions
68
 Most successfull launch ever in the
272
German cardiovascular market
42 67
57  Sales target 2013: ~€0.6bn
31
34
23
22
8 8 11 14
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
US* Rest of the world
*Bayer reporting, not reflecting in-market sales
Page 53 • Bayer Investor Presentation • Meet Management • March 2013

56. Xarelto –
Development in Key Markets
Status as of mid Feb 2013
Market
Market Performance Performance Market Share (IMS)
Market Share (IMS)
Germany: most successful launch ever in the Market share1 ~30% vs. dabigatran
cardiovascular market ~10%
Japan: 2 week prescription limitation to be lifted in April Market share2 ~9%
2013
Brazil: patient and prescriber base continously growing; Market share3 ~34%
now leader in the anticoagulant market
UK: generally low acceptance for novel oral Market share 2~4% vs. dabigatran
anticoagulants ~4%
France: now level with dabigatran Market share1 ~13%, dabigatran
~13%
US4: steady uptake with consistent positive indicators ~30% new to brand prescription
especially in cardiology, expanding access share5
Source: IMS; 1 sales market share anticoagulants (AC) ex manufacturer prices,
Page 54 • Bayer Investor Presentation • Meet Management • March 2013 retail; 2 anticoagulants retail and hospitals, 3 sales market share AC , retail;
4:marketed by J&J; 5: oral anticoagulant market

57. Eylea –
Launch
Underway
Page 55 • Bayer Investor Presentation • Meet Management • March 2013

58. Eylea –
Major Progress Achieved
1) Clinical
 Positive phase III data in wet AMD and CRVO reported
 Phase III in DME and mCNV ongoing
 First phase III data in mCNV expected 1H 2013
 First phase III data in DME expected 2H 2013
2) Regulatory
 Filed for CRVO in EU/J
3) Marketing
 Bayer has marketing rights ex-US1, launched in first markets in wet AMD end 2012
(sales 2012: €14m)
 Further roll out in wet AMD planned in Europe, Latin America & Asia in 2013
 First launches in CRVO planned for 2H 2013
1: Regeneron has US marketing rights; AMD: age-related macular degeneration;
Page 56 • Bayer Investor Presentation • Meet Management • March 2013 CRVO: central retinal vein occlusion; mCNV: myopic choroidal neovascularization

59. Retina Treatment is The Fastest Growing
Area Within Ophthalmology
Global Ophthalmology Market in $bn CAGR 2010-2022e in %
35.6 5
2.8
2.7 3
14.8 14
16.0
Other 1.7
1.5
Dry eye 2.0 3
Retinal disorders 2.4
3.0 6.3
Anti-allergy / infec- 4.3
tive/ inflammatory 4.1
9.0 5
Glaucoma 5.2
5.0
2010 2022e
Source: Visiongain report, “Ophthalmic Drugs: World Market Prospects ”
Page 57 • Bayer Investor Presentation • Meet Management • March 2013

60. Eylea – Developed for the Treatment of
Various Back of the Eye Diseases
Wet age-related macular degeneration (wet AMD)
 One of the leading cause of severe vision loss
 Globally an estimated 12 million patients in the 50+ age group
Diabetic macular edema (DME)
 The most frequent cause of blindness in young and mid-aged adults
 Globally. the treatable patient population for DME is estimated ~6.2 million
Central retinal vein occlusion (CRVO)
 90% occur in patients aged ~50, it can affect all ages
 A common retinal vascular disorder affecting ~2.5 million people globally
Myopic choroidal neovascularization (myopic CNV)
 High prevalence in Asian population
 In Japan and China treatable population of mCNV is approx. 2 million, with
approx. 0.2 million new cases/year
Peak sales potential ≥ €1bn
Eylea has been in-licensed from Regeneron; Bayer has exclusive marketing rights ex-US
Page 58 • Bayer Investor Presentation • Meet Management • March 2013 patient numbers are Bayer estimates

61. Stivarga –
Encouraging
Start
Page 59 • Bayer Investor Presentation • Meet Management • March 2013

62. Stivarga (Regorafenib) – Three Dimensional
Mode of Action
Inhibition of proliferation Inhibition of tumor Inhibition of
of certain tumor cells microenvironment signals neoangiogenesis
 Regorafenib is an oral tumor deactivation agent that potently blocks multiple protein
kinases, including kinases involved in:
 Tumor angiogenesis (VEGFR1, -2, -3, TIE2)
 Oncogenesis (KIT, RET, RAF-1, BRAF, BRAFV600E)
 Tumor microenvironment (PDGFR, FGFR)
VEGFR: vascular endothelial growth factor receptor; TIE2: tyrosine kinase with
Page 60 • Bayer Investor Presentation • Meet Management • March 2013 immunoglobulin-like and EGF-like domains ; PDGFR: platelet derived growth factor
receptor; FGFR: fibroblast growth factor receptor;

63. Stivarga –
Major Milestones Achieved
1) Clinical
 Positive phase III data in mCRC and mGIST
 Phase III in 2nd line HCC initiated (RESORCE)
 Colorectal cancer (adjuvant therapy) expected to start 2H 2013
2) Regulatory
 Filed for mCRC in EU & Japan (priority review)
 Regulatory decision in Europe expected 1H 2013
 Filed for mGIST in Japan (priority review)
 Filing for mGIST in Europe H1 2013e
3) Marketing
 Launched in mCRC (Sep 2012) / mGIST (Feb 2013) in the US
 Sales of €32m in 2012, peak sales potential ≥ €1bn
mCRC: metastatic colorectal cancer; mGIST: metastatic gastrointestinal
Page 61 • Bayer Investor Presentation • Meet Management • March 2013 stromal tumors; HCC: hepatocellular carcinoma

64. Regorafenib Phase III in 2nd Line HCC
(RESORCE) – Study Design
Regorafenib 160 mg od
Advanced 3 wks on /1 wk off
HCC Primary
2:1 endpoint:
after failure of randomisation
sorafenib OS
Placebo
Primary endpoint Overall survival (OS)
Time to progression; progression-free
Secondary endpoints (selection):
survival; objective tumor response;
disease control
Time frame (months): ~33
Number of patients to be enrolled: 530
HCC: hepatocellular carcinoma (liver cancer)
Page 62 • Bayer Investor Presentation • Meet Management • March 2013 od: once a day

65. Radium-223
dichloride –
First-in-Class Alpha-
Pharmaceutical
Page 63 • Bayer Investor Presentation • Meet Management • March 2013

66. Radium-223 dichloride – Addressing
Significant Unmet Need
 First-in-class alpha-pharmaceutical (Radium-223 dichloride)
 Radium is a natural bone seeker, selectively targeting bone metastases with
high-energy, short-range alpha-particles
 Bone metastases occur at high incidences in certain late-stage cancers, for
example prostate cancer
 Inlicensed from Algeta
Tumor cells
Newly formed
bone
Bone metastases Radium-223 deposition highly localized tumor cell killing
Peak sales potential ≥ €1bn
CRPC: castration-resistant prostate cancer
Page 64 • Bayer Investor Presentation • Meet Management • March 2013

67. Radium-223 dichloride –
Regulatory Progress Achieved
1) Clinical
 Phase III (ALSYMPCA) in symptomatic castration-resistant prostate cancer
(CRPC) patients with bone metastases stopped early – Radium-223 dichloride
demonstrated 44% improvement in overall survival
 Broader clinical development program planned: studies in earlier settings of
prostate cancer, including combination studies and studies in other tumors
(such as breast cancer and osteosarcoma)
2) Regulatory
 Submitted for treating bone metastases in patients with CRPC in Europe
and the US in Dec 2012 (priority review granted by the FDA)
3) Marketing
 Launch preparations underway
Page 65 • Bayer Investor Presentation • Meet Management • March 2013

68. Treatments for CRPC Patients with Bone
Metastases Needed
 ~900,000 men diagnosed and ~260,000 died from
prostate cancer p. a. worldwide1
 CRPC is a form of advanced prostate cancer in
which the tumor grows despite castrate levels of
testosterone
 Up to 90% of CRPC patients have radiological
evidence of bone metastases
 Bone metastases are the main cause of disability
and death in patients with CRPC
 No survival benefit from current bone-targeted
agents
Bone metastasis occurs in almost
all prostate cancer patients during
the natural course of their disease
and typically targets the lumbar
spine, vertebrae and pelvis2
1 World Health Organization. GLOBOCAN 2008
Page 66 • Bayer Investor Presentation • Meet Management • March 2013 2 Bubendorf L, et al. Hum Pathol. 2000;31(5):578-83
CRPC: castration-resistant prostate cancer

69. Riociguat –
Adressing
Unmet Medical
Need
Page 67 • Bayer Investor Presentation • Meet Management • March 2013

70. Riociguat – A New Mode of Action
 Pulmonary hypertension (PH) is
Riociguat
associated with endothelial
dysfunction, impaired synthesis of Nitric Oxide (NO)
nitric oxide (NO) and insufficient
stimulation of the NO-sGC-cGMP
pathway
sGC
 Riociguat targets sGC to increase
production of cGMP
 Stimulates native form of sGC
directly (independently of NO)
 Activity unaffected by depleted cGMP↑
NO levels
 Makes sGC more sensitive to the
body‘s own residual / existing NO
Vasodilatation
sGC: Soluble guanylate cyclase; cGMP: cyclic
Page 68 • Bayer Investor Presentation • Meet Management • March 2013 guanosine monophosphate

71. Forms and Epidemiology of Pulmonary
Hypertension
 Pulmonary hypertension (PH) encompasses multiple disease subtypes but approved
treatments are only indicated for pulmonary arterial hypertension (PAH)
 ~700,000 patients diagnosed1 with diseases related to / including PH with ~300,000
patients thereof being potentially eligible for PH treatment
~30,000 PAH
~20,000 CTEPH
~410,0002 PH owing to lung disease
~240,000 PH-LVD
1Diagnosesestimated in 2009 in US, EU5, J;
2Thereof
~ <20% could be treated for PH
Page 69 • Bayer Investor Presentation • Meet Management • March 2013 CTEPH: Chronic thromboembolic pulmonary hypertension
LVD: left ventricular disease