Investor Conference Call Q3 2014 Results October 30, 2014 / Marijn Dekkers, CEO Page 1 Q3 2014 Investor Conference Call Marijn Dekkers 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 Q3 2014 Investor Conference Call Marijn Dekkers
Q3 2014 Operational Strength and Strategic Focus on Life Sciences Strong organic top line growth in all subgroups Underlying EBITDA improvement negatively impacted by minus 80m FX effect Business portfolio significantly strengthened and focused Planned stock-market listing of MaterialScience announced Merck & Co. CC acquisition & sgc pharma collaboration closed Divestiture of Interventional business closed Full-year group guidance 2014 raised Page 3 Q3 2014 Investor Conference Call Marijn Dekkers CC: Consumer Care Q3 2014 Strong Organic Growth / Performance Impacted By FX in million % currency & portfolio adj. EBIT in million EBITDA adjusted* in million Core EPS in 9,643 10,187 1,221 1,376 1,984 2,011 1.27 1.35 +7% +13% +1% +6% Page 4 Q3 2014 Investor Conference Call Marijn Dekkers
Q3 2014 Regional Performance: Growth In All Regions In million, % yoy Fx adjusted Group by Region Emerging Markets USA +8% 21% Emerging Markets¹ +12% +11% ~1,600 +15% ~1,500 41% +12% 3 Western Europe +2% 8% Others² +4% ~600 +4% ~400 Group 10,187m; +7% Emerging Asia³ Latin America Eastern Europe Africa & Middle East Page 5 Q3 2014 Investor Conference Call Marijn Dekkers 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 ³ Emerging Asia = Asia w/o Japan, Australia, New Zealand Q3 2014 Cash Flow And Net Debt Development Cash Flow in million, Net Debt in billion Cash Flow Net Debt Development GCF NCF Investments ofcf 9.9-1.4bn 8.5 1,492 1,816 546 1,270 y-o-y +9% +5% +6% +5% June 30, 2014 Sep 30, 2014 Page 6 Q3 2014 Investor Conference Call Marijn Dekkers
Q3 2014 HealthCare: Continued Dynamic Growth Driven by Pharma & Consumer Care Consumer Health (+2%) 36% Pharma +8% (+1) 1,921 3,039 1,392 1,402 +1% 1,048 1,037-1% HealthCare 4,960m; +5% (+7%) Price +1% Volume +6% Fx -2% Portfolio Page 7 Q3 2014 Investor Conference Call Marijn Dekkers Q3 2014 Pharma: Launch Products Continue to Drive Growth Launch products 750 960 +5% 915 677 699 +3% Pharmaceuticals 3,039m; +8% (+1) Page 8 Q3 2014 Investor Conference Call Marijn Dekkers
Q3 2014 Consumer Health: Continued Strong Consumer Care and Animal Health Business Animal Health +3% (+4%) 330 36% 585 Medical Care -5% (-4%) Consumer Care +2% (+6%) 1,006 477 442-7% 371 338-9% Consumer Health 1,921m; (+2%) Page 9 Q3 2014 Investor Conference Call Marijn Dekkers Q3 2014 CropScience: Continued Strong Performance in North / Latin America Environmental Science +6% (+8%) Crop Protection +1 (+12%) 131 148 1,650 Seeds +93% (+96%) CropScience 1,929m; +13% (+15%) 224 278 +24% 115 157 +37% Price +3% Volume +11% Fx -2% Portfolio Page 10 Q3 2014 Investor Conference Call Marijn Dekkers
Q3 2014 MaterialScience: Volumes Driven by Increased Demand Polycarbonates +8% (+8%) 726 1,652 Polyurethanes +5% (+6%) CAS** +3% (+5%) 503 346 334-3% IO*** -9% (-9%) 155 MaterialScience 3,036m; +5% (+5%) 186 186 Price -1% Volume +6% Fx Portfolio Page 11 Q3 2014 Investor Conference Call Marijn Dekkers **CAS: Coatings, Adhesives, Specialties *** IO: Industrial Operations Q3 2014 Full-Year Group Guidance Raised Fx and portfolio adjusted, EBITDA before special items 2013 2014E as of Feb 14 (Avg. Fx rates Q4 13) 2014E* (Spot Fx rates as of Sep 30, 2014 for Q4 14) 40.2bn ~5% to ~ 41-42bn (neg. FX effect approx. -2%) ~6% to ~ 42bn (neg. FX effect approx. -3%) adj. EBITDA 8.4bn low- to mid-singledigit % increase mid-single-digit % increase (neg. FX effect approx. -5%) (neg. FX effect approx. -5%) core EPS 5.61 mid-single-digit % increase (neg. FX effect approx. -6%) mid- to high-singledigit % increase (neg. FX effect approx. -7%) Page 12 Q3 2014 Investor Conference Call Marijn Dekkers Outlook depends on specific planning assumptions as detailed in the Annual Report *including Merck & Co. Consumer Care business from Oct 1, 2014
Investor Conference Call Q3 2014 Results October 30, 2014 / Marijn Dekkers, CEO Page 13 Q3 2014 Investor Conference Call Marijn Dekkers