Spring Investor Conference Werner Wenning CFO and Member of the Board

Spring Investor Conference 2002 Werner Wenning CFO and Member of the Board

Safe Harbour This presentation contains forward-looking statements based on current assumptions and forecasts made by Bayer Group 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 our public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F). The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

A Far-Reaching Transformation... Focus Portfolio management Outcome Optimization of business mix Capital allocation Strict capital discipline Organization Management holding structure Efficiency improvement Ideally prepared for next upswing Corporate culture Entrepreneurship, performance orientation... to significantly increase corporate value

Strategic Priorities* Sales (cont.) 2001: EUR 28,938 million Health Care Find strategic partner + Aventis Behring + Vardenafil Co-promotion - Household insecticides - Generics (F, E, SA) 38% 10% CropScience Successfully manage ACS integration + ACS acquisition 13% 39% Polymers Expand global leadership - Rhein Chemie - PolymerLatex Chemicals Continue restructuring - Haarmann & Reimer * Animal Health business included in Health Care The acquisition of Aventis CropScience is subject to regulatory approval

Portfolio Optimization Continues EUR million Acquisitions/ Joint Ventures Divestitures 2001 Jan + Mikado 2001 May Erdölchemie Aug + Aventis CropScience 1) Dec Haarmann & Reimer 2) PolymerLatex 2) Rhein Chemie 2) Generics (F, SA, E) 2) 2002 Jan Real estate Organic pigments 2002 Feb + Aventis Behring 1) Mar Household insecticides 2) 1) subject to relevant approvals 2) pending

Strict Capital Spending Discipline Enforced EUR million 1.8 2,703 2,632 2,647 2,617 2,516 1,543 1.5 1,811 2,139 1.2 1.0 1.0 1998 1999 2000 2001 Plan CapEx: Capital Expenditure CapEx/D&A-Ratio D&A: Depreciation & Amortization

Building a Highly Competitive Business Platform Stronger focus on markets, core competencies and business performance Strengthen entrepreneurial approach, direct management and direct responsibility for earnings Group Management Board Corporate Center- Departments Reduce complexity of corporate organization and governance Achieve necessary flexibility for strategic partnerships and integration of acquisitions Bayer Health Care AG Bayer Crop Science AG Bayer Polymers AG Bayer Chemicals AG Exploit cross-business-group synergies in business area companies more efficiently Enhance visibility and competitive stance of service functions Bayer Business Services GmbH Bayer Technology Services GmbH Bayer Standort Dienste GmbH & Co. OHG

The New Bayer* Principle of new corporate structure Most effective possible support for businesses and sufficient flexibility for mastering strategic challenges Group Management Board Corporate Center- Departments Bayer Health Care AG Bayer Crop Science AG Bayer Polymers AG Bayer Chemicals AG Services Bayer Business Services GmbH Bayer Technology Services GmbH Bayer Standort Dienste GmbH & Co. OHG *Subject to stockholders approval

The New Group Management Board Werner Wenning Chairman Dr. Richard Pott Strategy, Human Resources and Labor Director Klaus Kühn Finance Dr. Udo Oels Technology and Environment Werner Spinner Marketing, Regions and Services Corporate Policy Corporate Coordination Communication Investor Relations Portfolio Management Allocation of resources Group HR policy HR Management and development Finance Planning and Controlling Tax and Legal Mergers & Acquisitions Technology Management Innovation Management Environmental and Safety Policy Technology Excellence Initiatives Business Excellence Initiatives Regions Business Services Information and Knowledge Management

The New Bayer Holding Structure Group Management Board Corporate Center-Departments Corporate Planning and Controlling Communications Investor Relations Finance Legal, Intellectual Properties, Insurances Taxes Int. HR Management Health, Safety and Environment Management Corporate Auditing

Bayer HealthCare AG Board of Management Chairman Dr. F. Morich Head of Animal Health Head of Pharma Administration Head of Biological Products Head of Diagnostics Head of Consumer Care Head of Strategy Global Executive Committee Animal Health Biological Products Consumer Care Diagnostics Pharma Administr. & Services Strategy Germany USA USA USA Germany Germany USA

Bayer CropScience AG Board of Management Chairman Dr. J. Wulff Business Operations Dr. E. Zirakparvar Technology Dr. B. Garthoff Administration W. Scherf Portfolio Management Research Development Industrial Operations Supply Chain Europe France NAFTA USA Cono Sur Brazil North-East Asia Japan International Germany Environmental Science France BioScience France Planning, Contr. & Coordination Accounting Inform. Technology Business Processes Procurement Communications Legal & Patents Human Resources

Bayer Polymers AG Board of Management Chairman Dr. H. Noerenberg Innovation, Information, Services Operations Head of Europe Head of America Head of Asia Global Executive Committee Innovation Product units Europe America Asia Germany USA Hong Kong Services Technology

Bayer Chemicals AG Board of Management Chairman Dr. U. Koemm Technology, R & D, Services Business Units, Regions H.C.Starck Research & Development Units Units Units Technology Planning, Contr., Reporting Business Services Units Units Regions

Productivity, Employees and Personnel Expenses 251 258 Sales per employee (EUR thousands) +47% 175 193 142.2 75.2 145.1 80.9 113.9 63.5 112.0 62.3 Employees (thousands) Total Foreign -21% -17% 67.0 64.2 50.4 49.7 Domestic -26% 1996 1998 2000* 2001* 31 29 25 26 Personnel expenses (% of sales) * Continuing operations

Efficiency Improvement Program Planned savings of EUR 1.8 bn by 2005 Number of projects: 9 Total one-time charges 640 Headcount reduction: 5,000 54 235 329 511 1,734 Identified Net Savings (after excep.) 605 EUR million 98-01 2002 2003 2004 2005 Total

Working Capital Initiative Time Objective Reduction of working capital EUR 1 bn End 01 End 02 Improvement of working capital processes and organization Receivables Management Payables Management Inventory Management EUR 1 1.5 bn Broadly based program initiated Wide range of actions identified

Strong Working Capital Performance EUR million %YoY 3,859 Net cash flow 1,067 768 534 1,207 441 1,821 647 +24.8 2,923-29.8 Gross cash flow 297 766 1,175 936-187.2% Change in net working capital -770-235 -104-84 822 1,375 2,009 W. Cap. Improvement (prev. year) Q1 Q2 Q3 Q4 Year

Components of 2001 Sales Trend EUR million Sales Discontinuing Continuing + Acquisitions/ Divestitures +Currencies +Prices Volumes Continuing 2000 2001 % 30,971 2,356 28,615 30,275 1,337 859 81 298 915 28,938 2.2 +3.0 +0.3 +1.0 3.2 +1.1 Acquisitions + 983 Lyondell + 202 CSM + 133 Flint + 104 Mikado + 46 Sybron + 206 Cytec + 83 Others + 209 Divestitures 124 Covexx 61 Biologicals (AH) 30 H-acid 18 Bayer Solar 15

Year 2001 Comparable Operating Income EUR million 2001 2000 % OPI reported Segments Reconciliation * accounted as at equity since 2001 1,611 1,504 (262) 3,287 3,303 (239) Discontinuing operations 369 223 H&R Fibers Erdölchemie (OPI + Sale) DyStar* OPI continuing Exceptional items (cont.) OPI underlying continuing operations 73 (37) 333 1,242 (613) 68 51 99 5 3,064 (145) 51.0 54.5 59.5 1,855 3,209 42.2

Non-operating result EUR million Q4 2001 YoY Non-operating result 79 496 199 Income (expenses) from + 26 + 54 229 affiliated companies net Interest expense net 67 349 38 Interestportionpension 65 274 2 provisions Exchange gain net + 21 + 49 + 70 Miscellaneous net + 6 + 24 0

Health Care Full Year 2001 EUR million FY 01 9,833 1.9 Q4 2,737 0.9 1-9 Q3 1H Q2 7,096 2.3% 2,167 4,929 +3.8% 2,543 13.9 +4.1 771 47.8 70.8 379 392 302 27.4 234 25.6 67 158 469 84.6% 55.8% 284 187.7 308 24 92.8 441 445 37.0% 38.7% 97 74.8 +10 87 77.5 Q1 2,386 +3.5 344 +9.2 14 358 +5.3 Sales % % % Op. Income (reported) Exceptionals (net) Op. Income (underlying)

Agriculture Full Year 2001 EUR million FY 01 3,696 +7.0 Q4 817 +27.7 1-9 Q3 1H Q2 2,879 +2.3% 787 2,092 +0.0% 1,098 +9.0 +2.9 625 +7.0 0 625 125 500 16.4% 47 453 5.8% 59.8 0 0 125 500 12.7% 47 453 7.0% +12.0 45.3 218 +1.4 0 218 +1.0 Q1 994 3.0 235 11.7 0 235 13.3 Sales % % % Op. Income (reported) Exceptionals (net) Op. Income (underlying)

Polymers Full Year 2001 EUR million FY 01 Q4 10,788 2,467 1.0 +17.8 1-9 Q3 1H Q2 8,321 285 71.2 149 434 59.7 +3.7% 125 161.6 410 46 79 134.6 2,650 5.6 513 47.8% 39.6% 5,671 18 91.5 63 81 68.0 +8.7% 392 432 31.7% 27.6% 2,825 +1.5 180 31.6 22 202 27.1 Q1 2,846 +16.9 212 32.1 18 230 27.9 Sales % % % Op. Income (reported) Exceptionals (net) Op. Income (underlying)

Chemicals Full Year 2001* EUR million FY 01 Q4 1-9 Q3 1H Q2 Q1 3,749 833 2,916 +16.3% 866 2,050 +22.6% 1,028 1,022 Sales +9.9 7.5 +3.5 +18.6 +27.0 204 17 187 27.0% 5 182 28.3% 100 82 48.2 83.0 94. +1.0 26.0 9 262 11.5% 7 255 +20.9% % % % Op. Income (reported) Exceptionals (net) Op. Income (underlying) 67 +8 2 22 51 271 122 133 26.8 87.8 91.8 +23.2 +18.8 *completely restated (without H & R)

R & D and CapEx. Budgets for 2002 EUR million CapEx. R&D Polymers 37% Chemicals 16% 15% Central 6% 58% Health Care 7% 7% 25% Chemicals 13% 16% CropScience Health Care Polymers CropScience 2,335 (cont.) 2,440 (cont.) ( 8.5 % to 2001) ( 1.9 % to 2001) Animal Health included in CropScience

Outlook 2002 Health Care Higher operating earnings (pre-exceptionals) expected Agriculture Closing of ACS acquisition decisive Polymers & Chemicals First half expected to remain difficult Economic recovery expected during second half of 2002 Distinct improvement in net income targeted

Spring Investor Conference 2002