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.
3. We continue to operate in a challenging
and opportunity-rich landscape
Page 3 • Fueling our Strategy for Sustainable Success • September 2012
4. Farmers are at the center of our efforts to turn
global challenges into opportunities
Our farmer focus
EMPOWERING farmers to become
“agripreneurs” with tools & training
ENABLING progress by investing
in innovation and technology
ENHANCING partnerships by
collaborating from seed to shelf
Page 4 • Fueling our Strategy for Sustainable Success • September 2012
5. We continue to serve customers worldwide
with our expanding global footprint
Global network of 34 manufacturing, 13 R&D and 18 major seed processing sites
Seeds HQ
RTP* Global HQ (inc. Crop Protection)
Belgium Monheim
Denmark
Canada Germany
Netherlands
Switzerland South Korea
USA Spain France Turkey China
Pakistan Japan
Bangladesh
Mexico Thailand
Guatemala India Philippines
Colombia Vietnam
Costa Rica
Singapore
Indonesia
Brazil Environmental Science HQ
Manufacturing sites Lyon Australia
Major R&D sites South Africa
Major seed Argentina
processing sites
*Research Triangle Park
Page 5 • Fueling our Strategy for Sustainable Success • September 2012
6. In 2011, we launched a four-pillar strategy
to pave the way for sustainable success
1 2 3 4
Rejuvenate Reinvent customer- Rebalance and Extend Seeds
the core Crop centricity along refocus innovation footprint in
Protection business value chain focused crops
• Streamlining and • Driving commercial Striving for 50:50 • Strengthening
enhancing our excellence in in R&D for Seeds/ position in
Crop Protection marketing and sales Biologics and established crops
portfolio Chemistry by 2016
• Customizing • Extending portfolio
• Focusing on offerings and Innovating in e.g. soy, wheat,
flexibility and developing convergence oilseeds
efficiency differentiated between chemistry
solutions and biology
Page 6 • Fueling our Strategy for Sustainable Success • September 2012
7. Our strategic focus is reaping rewards,
as seen in our H1 sales and profits
H1 2012 Sales H1 2012 EBITDA before special items
In € million; Δ% yoy; ( ) Δ% yoy fxp* In € million; Δ% yoy
Bayer CropScience
total: 4,886 1,530
+16% (+14%)
1,216
376
Seeds** +25.8 %
+21% (+18%)
723
Crop Protection
+17% (+14%)
3787
H1 2011 H1 2012
Environmental
Science EBITDA margin before special items
DA item
+3% (+0%)
29.0% 31.3%
*fxp = foreign exchange and portfolio adjusted **Formerly called BioScience
Page 7 • Fueling our Strategy for Sustainable Success • September 2012
8. Following positive business development
in H1, we raised our full year guidance
Business outlook 2012
Sales to advance by approximately 10% on a currency-
and portfolio-adjusted basis
EBITDA before special items to improve by
approximately 20%
ket
Above-market growth
Page 8 • Fueling our Strategy for Sustainable Success • September 2012
9. In the midterm, sales will be driven by above-
market growth and an expansion in Seeds
7255
6830
Total sales in € million
Portion of business in:
Seeds
~20%
Crop Protection/
10% 11% ~13%
Environmental Science
2010 2011 E.2012 E.2016
Page 9 • Fueling our Strategy for Sustainable Success • September 2012
10. Looking ahead: We continue to see
opportunity-rich market dynamics
Environmental challenges…
calling for sustainable crop solutions
Rapidly-advancing technology…
demanding differentiated answers
Increasing market volatility…
requiring flexible and strategic adaptation
Page 10 • Fueling our Strategy for Sustainable Success • September 2012
11. We’re leveraging the full potential
of these opportunities
To beat expectations for sustainable answers…
we’re aiming to lead the way in
Sustainable Crop Solutions
In response to demands for differentiation…
we’re heavily investing in robust R&D technologies
To thrive despite increasing market volatility…
we’re building up world-class Product
Supply
Page 11 • Fueling our Strategy for Sustainable Success • September 2012
12. Leading in Sustainable Crop Solutions:
Sustainability in food production is a future mega trend
Customers expect safer and “sustainable” food
Customers expect safer and “sustainable” food
Global retailers have more stringent residue
reduction targets
Global retailers have more stringent residue
reduction targets
Tougher regulations and registration of synthetic products;
higher demand for biologics
Tougher regulations and registration of synthetic products;
higher demand for biologics
Biologics often effective in very small quantities
Biologics often effective in very small quantities
Green Products market forecast to triple to triple
The broader biologics market forecast
to almost 4 bn bn USD by 2020
to almost 4 USD by 2020
Page 12 • Fueling our Strategy for Sustainable Success • September 2012
13. With AgraQuest, we have all competencies
to lead in Sustainable Crop Solutions
Depending on specific market Molecular Biology, Small
conditions, individual solutions for Molecules and Biologics can
customer needs can be made Molecular be efficient solution-providers for
available through different Biology unmet customer needs - each
technology platforms requiring a different expertise
Customer Needs
Disease control
Weed control
Pest control
Synthetic Plant health
Biologics
Chemistry
Page 13 • Fueling our Strategy for Sustainable Success • September 2012
14. Investment of €5 bn in R&D from 2011-2016
will fuel delivery of new global R&D strategy
Sustainability Plant Health
Delivering sustainable Exploiting expertise in Seeds,
crop solutions to beat Biologics and Small
customer expectations Molecules to build a unique
position in plant health
World-class
R&D portfolio
Rebalancing
Innovation Collaboration
Investing equally in Seeds / Expanding network of
Biologics and Chemistry to collaborations to
create integrated & leverage full potential
effective global R&D of open innovation
organization
Page 14 • Fueling our Strategy for Sustainable Success • September 2012
15. We are ensuring world-class Product Supply
by investing € 2bn from 2011 to 2016
Optimizing supply chain model to increase flexibility and thrive despite volatility
Building up capacity for top Crop Protection brands including:
Expanding infrastructure for Accelerating our Capital Expenditures*
celerating Expenditures
Seeds business (breeding stations
CAPEX (in € million)
and seed production facilities)
400
300
Continuing to defend cost 200
leadership by focusing on 100
Operational Excellence 2011 2012 2013 2014 2015 2016
Page 16 • Fueling our Strategy for Sustainable Success • September 2012 *Property, plant and equipment
16. Bayer CropScience summary
• We significantly raised guidance for 2012 (in July)
• We aspire to double the share of our Seeds business by 2016
• We are investing ~ €5 bn in R&D*
• We are investing ~ €2 bn in CAPEX*
• Our pipeline* has a combined peak sales potential of > €4 bn
*2011-2016
Page 17 • Fueling our Strategy for Sustainable Success • September 2012