Investor Handout 1st Quarter 2002 Results

Investor Handout 1st Quarter 2002 Results

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.

1. 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

2. Acceleration of Portfolio Management: Nearly 16 bn since 96 Sales in million Bayer 7,500 Acquisitions 1) ACS 2) 4,300 Flint 3) 50 CSM 130 Sybron 230 Cytec paper chemicals 70 Polyols & PO j.v. 800 Gustafson (50%) 110 Chiron Diagnostics 500 Graphic Arts 450 Sheet business 200 Roche j.v. 200 8,300 1) major examples since 1996 2) 2001 sales; subject to regulatory approval 3) 2004 estimate 300 4) pending Divestitures 1) Household insecticides 4) 390 Haarmann & Reimer 4) 870 Rhein Chemie 4) 300 PolymerLatex (50%) 4) 200 Spandex fibers 4) 220 Acrylic fibers 160 Erdölchemie 460 DyStar 400 Agfa 4,350 Titanium dioxide 210 Silicones 220 Citric acid 250 Enamels 100 Skin & body care 115

3 Ov. Proactive Portfolio Management 1) million HC Ag Pol Ch Acqui- sitions 1998 1999 2000 01/022) + Chiron + Millennium + Gustafson + Seed treatment Citric acid TiO 2 Silicones Zeolites + Oncogene + Lion Bioscience Allergens + Pbi Home & Garden + PC shields + PC shields + Laserlite + Elastochem + Rid Schein Myriad Tropon Basics + Flint + Misung Biologicals + Lyondell DyStar + Sybron + CSM + Cytec paper chemicals Solar-grade Silicon 1,440 360 4,160 7,450 1) Major examples, acquisition prices rounded 2) pending/subject to regulatory approval/as of Apr. 02 3) incl. Agfa & others 4) Non-binding letter of intent, subject to relevant approvals + CuraGen + Aventis Behring 4) Generics Household insecticides 2) + Mikado + ACS 2) Acrylic fibers Rhein Chemie 2) Polymer Latex 2) Organic Pigments US 2) Erdölchemie Covexx Films Haarmann & Reimer 2) Acqui- sitions 1,300 8,500 2,900 530 13,400 3)

4 Portfolio Optimization Continues Acquisitions/ Joint Ventures Divestitures 2001 Jan + Mikado 2001 May Erdölchemie Aug + Aventis CropScience 1) Dec Haarmann & Reimer 2) PolymerLatex 2) Rhein Chemie 2) Generics 2) (F, SA, E) 2002 Jan Real estate Organic pigments 2002 Feb + Aventis Behring 3) Mar Household insecticides 2) 1) subject to relevant approvals 2) pending 3) Non-binding letter of intent to establish a joint venture, Subject to due diligence, the negotiation of a final agreement, approval by the boards of both companies and regulatory authorities

5. Strategic Priorities Health Care CropScience Polymers Chemicals Find strategic partner Successfully manage ACS integration Expand global leadership Continue restructuring Life cycle management of established products Successful launch of new products Build the pipeline Establish new business group Biologicals Achieve Diagnostics restructuring targets Gain market share Optimize regional presence Exploit full synergy potential Achieve margin target Develop position of Agbio Optimize business mix Concentrate on high-valueadded polymers Exploit growth potential in Asia Research new areas of applications Achieve specific efficiency improvements Streamline portfolio rigorously Strengthen specialty business Consider all options for cooperations Achieve targeted cost savings Find long-term solutions for Basic, Fine and Specialty Chemicals

6 Bayer Health Care: Strong Presence in Main Areas of the Business Sales 2001: 10.7 bn Consumer Care Aspirin Alka-Seltzer Canesten Pharmaceuticals Cipro Adalat Avelox Trasylol 20% 44% 19% 8% 9% Diagnostics Glucometer Elite Advia Centaur ACS Animal Health* Advantage Baytril Biologicals Kogenate Gamimune * Animal Health business is part of Health Care effective January 1, 2002 Investor Handout June 2002

7 Building a New Biologicals Company* Bayer Biologicals Sales 2001: 945 m Others Albumin 121 13 % 101 11 % Kogenate 131 14 % Prolastin 249 26 % 343 36 % Gamimune Combination of Bayer s Biologicals with Aventis Behring Bayer would own a substantial majority interest Option of acquiring the remaining interest at a later date Attractive long-term growth prospects Reliable and steady plasma supply Potential to optimize plasma utilization Potential to increase efficiency in quality assurance and manufacturing processes Stronger pipeline and technology platform in million euros * Non-binding letter of intent to establish a joint venture, subject to due diligence, the negotiation of a final agreement, approval by the boards of both companies and regulatory authorities

8 A World Class Drug Discovery Platform patho mechanism molecular target screening Genomics Functional Genomics Proteomics Bioinformatics High Throughput Screening Millennium CuraGen Myriad Genome Therap. Incyte Nova DX Affymetrix Dyax Onyx Oxford Glyco Science Lion Bioscience CyBio Novalon Receptron More than 1bn investment committed US $ 465 million genomics cooperation with Millennium Bioinformatics alliance with Lion Bioscience optimization Combinatorial Chemistry Substance Libraries Pharmacopeia ArQule ComGenex Oxford Asymmetry Genzyme Genetics Institute Morphosys First risk/reward sharing agreement with CuraGen Toxicogenomics CuraGen

9 Substantial Growth of the Pipeline Research Development Number of candidates/year 5 9 13 20 Number of candidates/stage 13 24 5 9 2 1998 2001 5 3 4 97 99 01 04* * objective Preclinical Phase I Phase II Phase III Phase III / NDAs Vardenafil: Cipro OD: Acarbose IGT: Repinotan: Faropenem: highly selective and potent PDE 5 inhibitor, filed in US, EU and Japan innovative once daily formulation new indication for Glucobay/ Precose intravenous drug for the treatment of acute stroke new broad spectrum antibiotic

10 HC Vardenafil: The New Blockbuster Peak sales potential > 1 bn A highly selective and potent PDE 5 inhibitor Significant improvement in key efficiency parameters irrespective of age, severity and etiology A very favorable safety profile Global co-promotion partner (except Japan): GSK NDA submission: 9/2001 US, Mexico 10/2001 Canada, South Africa 12/2001 Europe, Japan % Yes Improvement of erections after treatment with Vardenafil General Population Diabetics / Prostatectomized men 65% 80% 85% 57% 59% 72% 65% 28% 13% 13% Placebo 5 mg 10 mg 20 mg Placebo 10 mg 20 mg

11 Strategic Priorities Health Care CropScience Polymers Chemicals Find strategic partner Successfully manage ACS integration Expand global leadership Continue restructuring Life cycle management of established products Successful launch of new products Build the pipeline Establish new business group Biologicals Achieve Diagnostics restructuring targets Gain market share Optimize regional presence Exploit full synergy potential Achieve margin target Develop position of Agbio Optimize business mix Concentrate on high-valueadded polymers Exploit growth potential in Asia Research new areas of applications Achieve specific efficiency improvements Streamline portfolio rigorously Strengthen specialty business Consider all options for cooperations Achieve targeted cost savings Find long-term solutions for Basic, Fine and Specialty Chemicals

12 ACS Acquisition Agreement* million Acquisition price 7,250 (incl. debt, 100% of shares) Sales (2001) 4,300 StarLink Synergies Technology and potential liabilities remain with Aventis S.A. approx. 500 per year Restructuring costs approx. 500 Goodwill** approx. 4,000 (over 12 years) Closing June 03, 2002 * The acquisition of Aventis CropScience is subject to regulatory approval ** Potential reduction depending on divestment structure

13 Complementary Strengths: Bayer and ACS Strengths Bayer Strengths ACS Product portfolio: Insecticides, Fungicides Technical competence Strong presence in Europe Strong position in speciality markets: GPS, Seed Treatment Product portfolio: Herbicides, Insecticides Strong presence in all important regions and crops Biotechnology and Seed Good position with Environmental Science High profitability

14 Bayer CropScience: Combination of Two Strong Companies % of total* 2001 Sales: 6.5 bn Market Share: ~ 20 % BioScience 3 % Environmental Science 12 % (24 % ms) 1 Insecticides Herbicides 32 % (26 % ms) 31 % (14 % ms) 1 3 Fungicides 22 % (22 % ms) 2 ( ) market share market ranking * Pro-forma combination 2001 including Bayer`s Environmental Health business and including estimated post divestment impact

15 EU/FTC-Approval of the ACS-Acquisition The European Commission and U.S. FTC approved the acquisition of Aventis CropScience < 10 percent of the combined business ( 650-700 m) to be divested Insecticides Global business for fipronil based products for agrochemical applications. Option to license back ex USA and EU Business for certain specialty insecticides Fungicides EU business for ACS fungicides, mainly used for seed treatment Herbicides EU business for metamitron (Goltix ), flucarbazone business (Everest ) Strategic rationale for the acquisition remains intact

16. Strategic Priorities Health Care CropScience Polymers Chemicals Find strategic partner Successfully manage ACS integration Expand global leadership Continue restructuring Life cycle management of established products Successful launch of new products Build the pipeline Establish new business group Biologicals Achieve Diagnostics restructuring targets Gain market share Optimize regional presence Exploit full synergy potential Achieve margin target Develop position of Agbio Optimize business mix Concentrate on high-valueadded polymers Exploit growth potential in Asia Research new areas of applications Achieve specific efficiency improvements Streamline portfolio rigorously Strengthen specialty business Consider all options for cooperations Achieve targeted cost savings Find long-term solutions for Basic, Fine and Specialty Chemicals

xx Leading Ag Companies - Turnover 2001 million (including Seeds & Biotechnology) 1. 2. 3. Syngenta Bayer CropScience* Monsanto 5.821 7.062 7.011 4. 5. 6. DuPont BASF Dow 3.478 3.174 4.291 7. 8. 9. 10. MAI Sumitomo FMC Nufarm 876 818 729 589 *Pro-forma basis w/o divestments Source: Phillips McDougall

17. Customer Structure Sales 2001: 14.5 bn (Polymers & Chemicals) Health Care* Polymers 20 % 13 % Automotive Electronics 38% 39% 12 % Construction 16 % Chemicals 10% CropScience* 13% Chemicals 8 % 6 % 25 % Furniture Textile, Leather & Footwear Others * Animal Health business included in Health Care

18. Concentration on High-Value-Added Polymers PE 28% PVC 14% 1% 3% 3% PP 16% 4% 4% PS 7% PET 6% 10% 4% Engineering Thermoplastics Others PC ABS Solid Rubber Thermosetting Resins Others Coatings PU World market polymers 01; Total 190m tons

19. Global Leadership in High-Value-Added Polymers Sales 2001: 10.8 bn sales% ms% # Polycarbonates 40 30 2 Styrenics 35 15 2 31% Plastics Semicrystalline Thermoplastics 10 > 5 6 Fabricated Products 10 > 20 2 TPU 5 > 20 2 sales% TDI 17 ms% 25 # 1 20% Rubber 19% Coatings and Colorants 30% Polyurethanes MDI 33 Polyols 43 sales% ms% # 26 26 1 1 Isocyanates 38 Adhesives 14 Colorants 25 Others 23 > 50 34 24 1 1 1 ms = Market share # = Ranking

20 Strategic Priorities Health Care CropScience Polymers Chemicals Find strategic partner Successfully manage ACS integration Expand global leadership Continue restructuring Life cycle management of established products Successful launch of new products Build the pipeline Establish new business group Biologicals Achieve Diagnostics restructuring targets Gain market share Optimize regional presence Exploit full synergy potential Achieve margin target Develop position of Agbio Optimize business mix Concentrate on high-valueadded polymers Exploit growth potential in Asia Research new areas of applications Achieve specific efficiency improvements Streamline portfolio rigorously Strengthen specialty business Consider all options for cooperations Achieve targeted cost savings Find long-term solutions for Basic, Fine and Specialty Chemicals

21 Chemicals Business Portfolio and Operational Performance Substantially Improved Sales 4,898 m Inorganics Organic Chemicals Specialty Products H.C. Starck EC Erdölchemie H-acid Solar-grade silicon Titanium dioxide Silicones Citric acid Enamels Abrasives & Refractory divested + + + Cytec Sybron CSM Sales 3,748 m Basic & Fine Chemicals Specialty Products H.C. Starck DyStar divested Haarmann & Reimer to be divested regrouped Wolff Walsrode 1996 Divestitures 2,600 Acquisitions 480 Headcount 10,000* 2001 * including 3,800 of H & R

22 Bayer Chemicals Attractive Opportunities in Specialist Applications Sales 2001: 3.7 bn H.C. Starck Metallic powders Mill products Ceramic powders Basic & Fine Chemicals Fine chemicals 27 % Basic chemicals 49 % Inorganic basic chemicals 22 % Others 2 % 22% 27% 12% 39% Wolff Walsrode Cellulose derivatives Plastic films Specialty Products Leather chemicals 22 % Textile auxiliaries 27 % Paper chemicals 21 % Polymer additives 11 % Material protection 8 % Ion exchange 10 %

23 Corp. Strategic Priorities* Sales (cont.) 2001: 28.938 m Health Care Find strategic partner 38% 10% CropScience Successfully manage ACS integration 13% 39% Polymers Expand global leadership Chemicals Continue restructuring * Animal Health business included in Health Care The acquisition of Aventis CropScience is subject to regulatory approval

24 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

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

26 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

27 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 Reduce complexity of corporate organization and governance Achieve necessary flexibility for strategic partnerships and integration of acquisitions Exploit cross-business-group synergies in business area companies more efficiently Enhance visibility and competitive stance of service functions

28 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

29 The New Group Management Board Werner Wenning Chairman Corporate Policy Corporate Coordination Communication Investor Relations Dr. Richard Pott Strategy, Human Resources and Labor Director Klaus Kühn Finance Dr. Udo Oels Technology and Environment Werner Spinner Marketing, Regions and Services 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

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

31 Bayer HealthCare AG Board of Management Chairman Head of Prof. Dr. F. Animal Health Berschauer Head of Dr. W. Pharma Plischke Administration Dr. F. Morich W. Baumann Global Executive Committee Head of Biological Products G. Riemann Head of Diagnostics R. Classon Head of Consumer Care G. Balkema Head of Strategy N. N. Animal Health Biological Products Consumer Care Diagnostics Pharma Administr. & Services Strategy Germany USA USA USA Germany Germany USA

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

33 Bayer Polymers AG Board of Management Chairman Dr. H. Noerenberg Innovation, Information, Services Dr. D. Hillenbrand Global Executive Committee Head of Europe Dr. J. Dahmer Head of America I. Paterson Operations Dr. T. van Osselaer Head of Asia Dr. A. C. Heitmann Innovation Product units Europe America Asia Germany USA Hong Kong Services Technology

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

35 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

36 Productivity, Employees and Personnel Expenses 175 193 251 258 Sales per + 47 % employee (EUR thousands) 142.2 145.1 75.2 80.9 113.9 112.0 Employees (thousands) Total 21 % 63.5 62.3 Foreign 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

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

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

39 Strong Working Capital Performance million % YoY 3,859 +24.8 2,923 1,821 29.8 Net cash flow Gross cash flow 1,067 768 1,207 647 534 441 297 766 1,175 936 187.2% Change in net working capital 235 770 104 84 822 1,375 2,009 W. Cap. improvement (prev. year) Q1 Q2 Q3 Q4 Year 2001

40 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

41 Q1 02 Financial Highlights million Q1 02 Q1 01 % Sales 7,233 7,901 8.5 Sales (cont.) 6,957 7,440 6.5 Operating income 840 848 0.9 Operating income 493 912 45.9 pre-exceptionals (cont.) Non-operating result 157 126 24.6 Pre-tax income 683 722 5.4 After-tax income 524 438 + 19.6 Net income 523 442 + 18.3 Earnings/share (Euro) 0.72 0.61 + 18.0

42 Components of Q1 Sales Trend million 2001 2002 % Sales Discontinuing 7,901 461 7,233 276 8.5 Continuing 7,440 Acquisitions/ Divestitures 299 4.0 Divestitures 299 Baycol 246 Covexx 25 ChemDesign 20 H-acid 8 + Currencies Prices +Volumes + 28 281 + 69 + 0.4 3.8 + 0.9 Continuing 6,957 6.5

43 Q1 Comparable Operating Income million 2002 2001 % OPI reported 840 848 0.9 Segments 435 872 50.1 Reconciliation 386 (48) Discontinuing operations 19 24 H & R 22 24 Fibers (3) (15) Erdölchemie 15 OPI continuing 821 824 0.4 Exceptional items (cont.) 328 (88) OPI underlying 493 912 45.9 continuing operations

44 Q1 Exceptional Items 2002 2001 million Charge Gain Net Charge Gain Net % HealthCare 14 0 14 14 0 14 0 CropScience 0 0 0 0 0 0 0 Polymers 102 0 102 18 0 18 84 Chemicals 6 0 6 51 0 51 + 45 Reconciliation 2 + 452 + 450 5 0 5 + 455 Cont. 124 + 452 + 328 88 0 88 + 416 Discont. 0 0 0 17 0 17 + 17 Total 124 + 452 + 328 105 0 105 + 433

45 Q1 02 Sales by Region Total 7,233 million, 8.5 % Continuing operations 6,957 million, 6.5 % Germany 11.7 % Europe 8.2 % 1,989 3,297 2,266 494 900 North America 3.9 % Latin America 6.8 % Far East/Asia/Pacific 6.5 % point of origin

46 Q1 02 Business Performance million Total (cont.) 6,957 6.5% 840 0.1% 493 45.9% HealthCare* 2,410 6.1% 230 37.2% 244 35.8% Crop Science 866 + 6.4% 144 32.4% 144 32.4% Polymers 2,648 7.0% 10 104.7% 92 60.0% 71 33.0% 77 41.7% Chemicals Reconciliation 847 186 17.2% 2.6% 386 64 45.4% Sales Op. Income (reported) Op. Income (underlying) * Including Animal Health

47 Pharmaceuticals - Top 10 Products million Q1 02 % (1) Ciprobay 407 + 21 (2) Adalat 207 23 (3) Kogenate 84 + 75 (4) Gamimune 76 + 25 (5) Glucobay 74 1 (6) Avelox 68 5 (7) Trasylol 44 + 19 (8) Prolastin 42 + 33 (9) Nimotop 33 + 10 (10) Fraction V 21 10

48 Q1 02 Non-Operating Result million Q1 02 Q1 01 % Non-operating result 157 126 24.6 Income (expenses) from + 3 + 31 90.3 affiliated companies net Interest expense net 62 88 + 29.5 Interest portion pension provisions 67 68 + 1.5 Exchange gain net 10 + 17 Miscellaneous net 21 18 16.7

49 Q1 Overview by New Reporting Segments Sales Q1 01 Q1 02 % ( million) Pharma 1,422 1,257 11.6 CC + DS 964 950 1.5 Animal Health* 180 203 + 12.8 HealthCare 2,566 2,410 6.1 CropScience** 814 866 + 6.4 KA + KU 1,522 1,308 14.1 PU + LS 1,324 1,340 + 1.2 Polymers 2,846 2,648 7.0 Chemicals 1,023 847 17.2 OPI pre-except. ( million) Q1 01 Q1 02 % Pharma 285 131 54.0 CC + DS 73 63 13.7 Animal Health* 22 50 + 127.3 HealthCare 380 244 35.8 CropScience** 213 144 32.4 KA + KU 185 24 87.0 PU + LS 45 68 + 51.1 Polymers 230 92 60.0 Chemicals 132 77 41.7 * Animal Health ex. Hygiene is part of HealthCare effective January 1, 2002 ** Hygiene business included in CropScience effective January 1, 2002

50 2001 Financial Highlights million Q4 % 2001 % Sales 7,372 8.5 30,275 2.2 Sales (cont.) 7,115 4.7 28,938 + 1.1 Operating income 256 55.0 1,611 51.0 Operating income (cont.) 251 50.7 1,242 59.5 Operating income 356 41.7 1,855 42.2 pre-exceptionals (cont.) Non-operating result 79 + 37.8 496 67.0 Pre-tax income 177 60.0 1,115 62.7 After-tax income 139 45.9 961 47.8 Net income 142 43.0 965 46.9 Earnings/share Euro 0.19 43.0 1.32 47.0 Dividend Euro 0.90 35.7

51 Components of 2001 Sales Trend million 2000 2001 % Sales Discontinuing 30,971 2,356 30,275 1,337 2.2 Continuing 28,615 + Acquisitions/ Divestitures 859 + 3.0 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 + Currencies + Prices Volumes 81 298 915 + 0.3 + 1.0 3.2 Continuing 28,938 + 1.1

52 2001 Quarterly Sales Development* million 2001 2000 % 4th quarter 7,372 8,053 8.5 H & R 209 213 Fibers 48 124 EC 162 DyStar 88 Continuing operations 7,115 7,466 4.7 3rd quarter 6,931 7,680 9.8 H & R 217 219 Fibers 63 131 EC 162 DyStar 85 Continuing operations 6,651 7,083 6.1 2nd quarter 8,071 7,907 + 2.1 H & R 224 222 Fibers 58 128 EC 57 149 DyStar 93 Continuing operations 7,732 7,315 + 5.7 1st quarter 7,901 7,331 + 7.8 H & R 222 211 Fibers 63 123 EC 176 162 DyStar 84 Continuing operations 7,440 6,751 + 10.2 * completely restated

53 2001 Comparable Operating Income million 2001 2000 % OPI reported 1,611 3,287 51.0 Segments 1,504 3,303 54.5 Reconciliation (262) (239) Discontinuing operations 369 223 H & R 73 68 Fibers (37) 51 Erdölchemie (OPI + Sale) 333 99 DyStar* 5 OPI continuing 1,242 3,064 59.5 Exceptional items (cont.) (613) (145) OPI underlying 1,855 3,209 42.2 continuing operations * accounted as at equity since 2001

54 2001 Quarterly OPI Development* million 2001 2000 % 4th quarter 256 569 55.0 H & R 15 16 Fibers (10) 4 EC 46 DyStar (6) Exceptional items (105) (102) OPI underlying continuing operations 356 611 41.7 3rd quarter (316) 724 143.6 H & R 20 15 Fibers (8) 13 EC (1) 20 DyStar 5 Exceptional items (373) (21) OPI underlying continuing operations 46 692 93.4 2nd quarter 823 960 14.3 H & R 14 22 Fibers (4) 18 EC (OPI + Sale) 319 19 DyStar 3 Exceptional items (47) (18) OPI underlying continuing operations 541 916 40.9 1st quarter 848 1,034 18.0 H & R 24 15 Fibers (15) 16 EC 15 14 DyStar 3 Exceptional items (88) (4) OPI underlying continuing operations 912 990 7.9 * completely restated

55 FY 2001 Exceptional Items 2001 2000 million Charge Gain Net Charge Gain Net Net Health Care 420 + 41 379 160 + 21 139 240 Agriculture 0 0 0 0 + 26 + 26 26 Polymers 181 + 31 150 97 + 7 90 60 Chemicals 81 + 13 68 7 + 31 + 24 92 Reconciliation 19 + 3 16 0 + 34 + 34 50 Cont. 701 + 88 613 264 +119 145 468 Discont. 23 + 316 + 293 24 0 24 + 317 Total 724 + 404 320 288 +119 169 151

56 2001 Non-Operating Result 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 Interest portion pension 65 274 2 provisions Exchange gain net + 21 + 49 + 70 Miscellaneous net + 6 + 24 0

57 2001 Sales by Region Total 30,275 million, 2.2 % Continuing operations 28,938 million, + 1.1 % Germany 0.2 % Europe + 0.6 % 8,116 12,999 9,806 2,316 3,817 North America + 1.1 % Latin America + 3.4 % Far East/Asia/Pacific + 1.5 % point of origin

58 2001 Segment Restatements million 2001 Segments w/o restatements Chemicals 4,618 (16 %) Polymers 10,788 (37 %) Agriculture 3,696 (13 %) Health Care 9,833 (34 %) Segments sales 28,938 Restatements* Animal Health (988), w/o Environmental Health (129) to Health Care Environmental Health to Crop Science H & R (872) to Discontinuing Operations Electronic Chemicals (40) from Basic and Fine Chemicals to H. C. Starck PolymerLatex (200) and Rhein Chemie (300) remain in Polymers until divested 2001 Segments restated Chemicals 3,749 (13 %) Polymers 10,788 (39 %) CropScience 2,708 (10 %) Health Care 10,692 (38 %) Segments sales 27,937 * Sales figures for FY 2001

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

60 Pharmaceuticals Top 10 Products 2001 million Q4 01 % 2001 % (1) Ciprobay 740 + 36 1,964 + 10 (2) Adalat 223 16 975 16 (3) Lipobay 14 367 42 (4) Gamimune 83 33 343 2 (5) Glucobay 84 + 5 312 0 (6) Kogenate 106 16 249 49 (7) Avelox 57 7 181 + 37 (8) Trasylol 45 + 61 136 + 30 (9) Prolastin 42 + 11 131 6 (10) Nimotop 30 14 120 7

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

62 Polymers Full Year 2001 million FY 01 10,788 1.0 Q4 2,467 +17.8 1-9 1H Q2 8,321 +3.7% Q3 2,650 5.6 5,671 +8.7% 392 31.7% 2,825 +1.5 285 71.2 149 434 59.7 125 161.6 46 79 134.6 410 513 47.8% 39.6% 18 91.5 81 68.0 63 432 27.6% 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)

63 Chemicals Full Year 2001* million FY 01 3,749 +9.9 Q4 833 7.5 1-9 Q3 866 +3.5 1H Q2 Q1 2,916 +16.3% 2,050 +22.6% 1,028 1,022 Sales +18.6 +27.0 204 17 187 27.0% 5 182 28.3% 100 82 Op. Income (reported) 48.2 83.0 94.0 +1.0 26.0 67 +8 2 22 51 Exceptionals (net) 271 9 262 11.5% 7 255 +20.9% 122 133 Op. Income (underlying) 26.8 87.8 91.8 +23.2 +18.8 % % % * completely restated (without H & R)

64 Full Year 2001 Overview by New Reporting Segments Sales Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ ( million) 2000 2000 2000 2000 2001 % 2001 % 2001 % 2001 % Pharma 1,394 1,467 1,527 1,752 1,422 + 2.0 1,510 + 2.9 1,143 25.1 1,654 5.6 CC + DS 911 975 991 1,011 964 + 5.8 1,034 + 6.1 1,024 + 3.3 1,083 + 7.1 Health Care 2,304 2,442 2,518 2,763 2,386 + 3.6 2,543 + 4.1 2,167 13.9 2,737 0.9 Crop Protection 795 783 463 414 779 2.0 830 + 6.0 526 + 13.6 573 + 38.4 Animal Health 230 284 259 226 215 6.5 268 5.6 261 + 0.8 244 + 8.0 Agriculture 1,025 1,067 722 640 994 3.0 1,098 + 2.9 787 + 9.0 817 + 27.7 KA + KU 1,365 1,446 1,476 1,528 1,522 + 11.5 1,468 + 1.5 1,343 9.0 1,249 18.3 PU + LS 1,069 1,337 1,332 1,338 1,324 + 23.9 1,357 + 1.5 1,307 1.9 1,218 9.0 Polymers 2,434 2,783 2,808 2,866 2,846 + 16.9 2,825 + 1.5 2,650 5.6 2,467 13.9 Chemicals 805 867 837 902 1,022 + 27.0 1,028 + 18.6 866 + 3.5 833 7.6 OPI pre-except. ( million) Pharma 278 318 254 315 286 + 2.9 29 90.9 100 139.4 168 46.7 CC + DS 62 68 80 101 73 + 17.7 57 16.2 124 + 55.0 134 + 32.7 Health Care 340 386 334 416 358 + 5.3 87 77.5 24 92.8 302 27.4 Crop Protection 240 148 35 22 210 12.5 160 + 8.1 11 131.4 94 Animal Health 31 68 51 7 25 19.4 59 13.2 58 + 13.7 31 + 342.9 Agriculture 271 216 86 15 235 13.3 218 + 0.9 47 45.3 125 KA + KU 137 123 148 151 186 + 35.8 131 + 6.5 44 70.3 72 147.7 PU + LS 182 154 105 77 44 75.8 72 53.2 37 64.8 7 109.1 Polymers 319 278 253 228 230 27.9 202 27.3 81 68.0 79 134.6 Chemicals 112 99 85 74 133 + 18.8 122 23.2 7 91.8 9 87.8

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

66 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