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Science For A Better Life




Perspective on Sustainability 2009
Leverkusen, November 11, 2009
Werner Wenning
                                          © Bayer AG, Leverkusen, Germany, 2009
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.

                                              © Bayer AG, Leverkusen, Germany, 2009
Focal points of the
Bayer Sustainability Program


 Strong alliances for sustainable
 health care


 Innovative partnerships for increased
 volumes of high-quality food


 New solutions in climate protection

                                         © Bayer AG, Leverkusen, Germany, 2009
Economic crisis due to
a lack of sustainability




                           © Bayer AG, Leverkusen, Germany, 2009
German Corporate Governance Code


  "Obligation of the Management Board and the Supervisory Board to
  ensure the continued existence of the enterprise and its sustainable
  creation of value in conformity with the principles of the social market
  economy." *

  "The Management Board is responsible for independently managing
  the enterprise with the objective of sustainable creation of value and
  in the interest of the enterprise, thus taking into account the interests
  of the shareholders, its employees and other stakeholders." **


* Foreword, para. 2   ** Section 4.1.1
                                               © Bayer AG, Leverkusen, Germany, 2009
Milestones in Bayer’s sustainable
 development endeavors

    First                                 First company to partner with the
Environment           First international    United Nations Environment
 and Social            Environmental      Programme in the area of youth
   Report             Protection Report           and environment


 1976         1986         1992          2000           2004           2007

           Guidelines for          Founding member                     Bayer
          Environmental            of the U.N. Global             Climate Program
       Protection and Safety            Compact
                                                © Bayer AG, Leverkusen, Germany, 2009
Requirements on international climate policy


 Agreement of clear, ambitious and feasible
 reduction 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



                                             © Bayer AG, Leverkusen, Germany, 2009
Bayer Climate Program
delivers a variety of solutions

 Further reduction in CO2 emissions
 with ambitious targets
 Total investment of EUR 1 billion in
 climate-relevant research and development
 and projects worldwide by 2010
 Innovative products for efficient climate
 protection and for addressing climate change



                                          © Bayer AG, Leverkusen, Germany, 2009
Lighthouse projects for
sustainable development



Challenge    Climate change


             New solutions in climate
Focus        protection

               EcoCommercial Building program
Lighthouse
               New technology for chlorine production
projects
               Energy efficiency
               Efficient use of resources
                                        © Bayer AG, Leverkusen, Germany, 2009
Bayer Climate Program:
Tackling malaria

 Malaria infections to increase by between
 40 and 60 million worldwide
 Working with the Bill and Melinda Gates
 Foundation and the Innovative Vector
 Control Consortium in the fight against malaria
  - joint creation of a new insecticide research platform
  - opening up the Bayer substance library for public health purposes




                                              © Bayer AG, Leverkusen, Germany, 2009
Bayer Climate Program:
Attendant measures

 CO2 reduction at Bayer data centers
 Modern telepresence systems for
 conferences to reduce need for
 long-distance air travel
 Reduction of nearly 10 % in CO2 emissions
 in the Bayer vehicle fleet by the end of 2009,
 with a 20 % reduction planned by 2012




                                             © Bayer AG, Leverkusen, Germany, 2009
Excellent ratings for Bayer


 Bayer is the only European company in our
 industry to be included in the Carbon
 Disclosure Project’s "Carbon Disclosure
 Leadership Index" for the fifth time in a row

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




                                             © Bayer AG, Leverkusen, Germany, 2009
Integrated sustainability concept



                 Corporate
                  Social
               Responsibility

               Business
               Activities

               Products &
              Innovations




                                © Bayer AG, Leverkusen, Germany, 2009
Megatrend: Growing world population


 By around 2050, the world population will increase from its
 current level of 6.8 billion to more than 9 billion
 Urgent questions concerning
  - innovative medicines for sustainable health care
  - high-quality food for the rapidly growing world
    population
 The United Nations Millennium Development
 Goals also address health care and nutrition


                                              © Bayer AG, Leverkusen, Germany, 2009
Lighthouse projects for
sustainable development



Challenge    Health care


             Strong alliances for
Focus
             sustainable health care


Lighthouse     Family planning
projects       Neglected diseases


                                       © Bayer AG, Leverkusen, Germany, 2009
Lighthouse projects for
sustainable development



Challenge    Nutrition

             Innovative partnerships for
Focus        increased volumes of high-
             quality food

Lighthouse     Food Chain Partnership for vegetables
projects       Direct sowing of rice


                                      © Bayer AG, Leverkusen, Germany, 2009
Innovations as a driver of
sustainable development

Focal point of Bayer’s corporate strategy:
 Innovation capability makes a crucial
 difference in the global arena
 Innovations generate growth to safeguard
 lasting success

Investment in research and development:
  R&D budget for 2009: EUR 2.9 billion
  A record level in Bayer's 146-year history

                                               © Bayer AG, Leverkusen, Germany, 2009
Proof of our commitment to sustainability


 Lighthouse projects providing concrete examples of our
 commitment:
  - improved health care and economic and social conditions for
    more than 15 million people worldwide
  - reduction in greenhouse gas emissions of around 350,000 metric tons
    at Bayer by 2013 – and a further 250,000 metric tons by 2020
    thanks to the introduction of oxygen depolarized cathode technology
 Contributions to mastering key sustainable development challenges
 and to realizing the United Nations Millennium Development Goals


                                             © Bayer AG, Leverkusen, Germany, 2009

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Bayer's Perspective on Sustainability 2009, Speach Werner Wenning

  • 1. Science For A Better Life Perspective on Sustainability 2009 Leverkusen, November 11, 2009 Werner Wenning © Bayer AG, Leverkusen, Germany, 2009
  • 2. 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. © Bayer AG, Leverkusen, Germany, 2009
  • 3. Focal points of the Bayer Sustainability Program Strong alliances for sustainable health care Innovative partnerships for increased volumes of high-quality food New solutions in climate protection © Bayer AG, Leverkusen, Germany, 2009
  • 4. Economic crisis due to a lack of sustainability © Bayer AG, Leverkusen, Germany, 2009
  • 5. German Corporate Governance Code "Obligation of the Management Board and the Supervisory Board to ensure the continued existence of the enterprise and its sustainable creation of value in conformity with the principles of the social market economy." * "The Management Board is responsible for independently managing the enterprise with the objective of sustainable creation of value and in the interest of the enterprise, thus taking into account the interests of the shareholders, its employees and other stakeholders." ** * Foreword, para. 2 ** Section 4.1.1 © Bayer AG, Leverkusen, Germany, 2009
  • 6. Milestones in Bayer’s sustainable development endeavors First First company to partner with the Environment First international United Nations Environment and Social Environmental Programme in the area of youth Report Protection Report and environment 1976 1986 1992 2000 2004 2007 Guidelines for Founding member Bayer Environmental of the U.N. Global Climate Program Protection and Safety Compact © Bayer AG, Leverkusen, Germany, 2009
  • 7. Requirements on international climate policy Agreement of clear, ambitious and feasible reduction 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 © Bayer AG, Leverkusen, Germany, 2009
  • 8. Bayer Climate Program delivers a variety of solutions Further reduction in CO2 emissions with ambitious targets Total investment of EUR 1 billion in climate-relevant research and development and projects worldwide by 2010 Innovative products for efficient climate protection and for addressing climate change © Bayer AG, Leverkusen, Germany, 2009
  • 9. Lighthouse projects for sustainable development Challenge Climate change New solutions in climate Focus protection EcoCommercial Building program Lighthouse New technology for chlorine production projects Energy efficiency Efficient use of resources © Bayer AG, Leverkusen, Germany, 2009
  • 10. Bayer Climate Program: Tackling malaria Malaria infections to increase by between 40 and 60 million worldwide Working with the Bill and Melinda Gates Foundation and the Innovative Vector Control Consortium in the fight against malaria - joint creation of a new insecticide research platform - opening up the Bayer substance library for public health purposes © Bayer AG, Leverkusen, Germany, 2009
  • 11. Bayer Climate Program: Attendant measures CO2 reduction at Bayer data centers Modern telepresence systems for conferences to reduce need for long-distance air travel Reduction of nearly 10 % in CO2 emissions in the Bayer vehicle fleet by the end of 2009, with a 20 % reduction planned by 2012 © Bayer AG, Leverkusen, Germany, 2009
  • 12. Excellent ratings for Bayer Bayer is the only European company in our industry to be included in the Carbon Disclosure Project’s "Carbon Disclosure Leadership Index" for the fifth time in a row Bayer has been continuously listed in the Dow Jones Sustainability World Index since 1999 © Bayer AG, Leverkusen, Germany, 2009
  • 13. Integrated sustainability concept Corporate Social Responsibility Business Activities Products & Innovations © Bayer AG, Leverkusen, Germany, 2009
  • 14. Megatrend: Growing world population By around 2050, the world population will increase from its current level of 6.8 billion to more than 9 billion Urgent questions concerning - innovative medicines for sustainable health care - high-quality food for the rapidly growing world population The United Nations Millennium Development Goals also address health care and nutrition © Bayer AG, Leverkusen, Germany, 2009
  • 15. Lighthouse projects for sustainable development Challenge Health care Strong alliances for Focus sustainable health care Lighthouse Family planning projects Neglected diseases © Bayer AG, Leverkusen, Germany, 2009
  • 16. Lighthouse projects for sustainable development Challenge Nutrition Innovative partnerships for Focus increased volumes of high- quality food Lighthouse Food Chain Partnership for vegetables projects Direct sowing of rice © Bayer AG, Leverkusen, Germany, 2009
  • 17. Innovations as a driver of sustainable development Focal point of Bayer’s corporate strategy: Innovation capability makes a crucial difference in the global arena Innovations generate growth to safeguard lasting success Investment in research and development: R&D budget for 2009: EUR 2.9 billion A record level in Bayer's 146-year history © Bayer AG, Leverkusen, Germany, 2009
  • 18. Proof of our commitment to sustainability Lighthouse projects providing concrete examples of our commitment: - improved health care and economic and social conditions for more than 15 million people worldwide - reduction in greenhouse gas emissions of around 350,000 metric tons at Bayer by 2013 – and a further 250,000 metric tons by 2020 thanks to the introduction of oxygen depolarized cathode technology Contributions to mastering key sustainable development challenges and to realizing the United Nations Millennium Development Goals © Bayer AG, Leverkusen, Germany, 2009