Q2 2014Bayer Continues Positive Business Development

July 30, 2014 / Marijn Dekkers, CEO

• Q2 2014 Investor Conference Call • Marijn Dekkers Page 1

DisclaimerThis presentation may contain forward-looking statements based on currentassumptions and forecasts made by Bayer Group or subgroup management.

Various known and unknown risks, uncertainties and other factors could lead tomaterial 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 areavailable on the Bayer website at www.bayer.com.

The company assumes no liability whatsoever to update these forward-lookingstatements or to conform them to future events or developments.

• Q2 2014 Investor Conference Call • Marijn DekkersPage 2

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Q2 2014 – Operational and Strategic Progress

Strong organic top line growth, in particular in Life Sciences

Underlying EBITDA improvement negatively impacted by

minus €160m FX effect

Business portfolio significantly strengthened

Merck & Co. OTC acquisition & sGC pharma collaboration signed

Divestiture of Interventional business signed

Full-year Group Guidance 2014 maintained

• Q2 2014 Investor Conference Call • Marijn Dekkers

Page 4

EBITin € million

+14%

1,4731,287

Salesin € million% currency & portfolio adj.

+6%

10,45810,360

EBITDAadjusted**in € million

+1%*

2,2172,195

Core EPSin €

* +8% if FX effect of -€160m is added back**before special items

Q2’14Q2’13 Q2’14Q2’13 Q2’14Q2’13 Q2’14Q2’13

Q2 2014 – Earnings Performance Impacted By Significant Currency Headwind

• Q2 2014 Investor Conference Call • Marijn Dekkers

-1%

1.531.54

Q2 2014 – Regional Performance: Growth Led by Emerging Markets

Page 5

Africa & Middle East

EasternEurope

Emerging Markets

EmergingMarkets¹

+8%

Others²+7%

USA+6%

Western Europe+4%

Group Sales by Region

Group €10,458m; +6%

~1,100

+13%~1,500

+7%

~400

+1%~700

+8%

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, Canada³ Emerging Asia = Asia w/o Japan, Australia, New Zealand

In € million, ∆% yoy Fx adjusted

36%

11%32%

21%

Latin America

EmergingAsia³

• Q2 2014 Investor Conference Call • Marijn Dekkers

Q2 2014 –Cash Flow And Net Debt Development

Page 6

+€0.9bn 9.9GCF oFCF

1,705

Invest-ments

529 1,072

∆y-o-y +1% +4%

NCF

1,601

+4% +5%March 31, 2014 June 30, 2014

9.1

Cash Flow Net Debt DevelopmentCash Flow in € million, Net Debt in € billion

• Q2 2014 Investor Conference Call • Marijn Dekkers

Q2 2014 – HealthCare: Continued Dynamic Growth

Page 7*before special items

Sales Earnings

Pharma+5% (+10%)

ConsumerHealth

-4% (+1%)36%

HealthCare €4,845m; +1% (+6%)

2,9601,885

Price+1%

Volume+5%

Fx-6%

Portfolio+1%

In € million, ∆% yoy, () = Fx & portf. adjusted

Q2‘13 Q2‘14 Q2‘13 Q2‘14

1,328 1,355 +2%

987 991 0%

Adj.EBITDA*

Adj.EBIT*

• Q2 2014 Investor Conference Call • Marijn Dekkers

() = Fx effect in € million

(-120)

Q2 2014 – Pharma: Launch Products Drive Growth

Page 8*before special items

Sales Earnings

Launch products

Pharmaceuticals €2,960m; +5% (+10%)

702

In € million, ∆% yoy, () = Fx & portf. adjusted

Q2‘13 Q2‘14 Q2‘13 Q2‘14

921 927 +1%

685

Adj.EBITDA*

Adj.EBIT*

668 -2%

• Q2 2014 Investor Conference Call • Marijn Dekkers

() = Fx effect in € million

(-100)

Q2 2014 – Consumer Health: Strong Consumer Care and Animal Health Business

Page 9*before special items

Sales Earnings

Medical Care-9% (-5%)

ConsumerCare

-2% (+4%)

36%

Consumer Health €1,885m; -4% (+1%)

595

932

In € million, ∆% yoy, () = Fx & portf. adjusted

Q2‘13 Q2‘14 Q2‘13 Q2‘14

407428 +5%

302+7%323

Adj.EBITDA*

Adj.EBIT*

• Q2 2014 Investor Conference Call • Marijn Dekkers

Animal Health-1% (+5%)

358

() = Fx effect in € million

(-20)

Sales Earnings

Q2 2014 – CropScience: Strong Performance in North / Latin America

Page 10

Crop Protection+3% (+10%)

Environmental Science+2% (+8%)

Seeds+7% (+16%)

In € million, ∆% yoy, () = Fx & portf. adjusted

CropScience €2,470m; +3% (+11%)

Price+3%

Volume+8%

Fx-7%

Portfolio0%

2,010

Q2‘13 Q2‘14 Q2‘13 Q2‘14

624 615 -1%514

470 -9%

Adj.EBITDA*

Adj.EBIT*

197263

• Q2 2014 Investor Conference Call • Marijn Dekkers*before special items

() = Fx effect in € million

(-40)

Sales Earnings

Q2 2014 – MaterialScience: Volumes Driven by Increased Demand

Page 11**CAS: Coatings, Adhesives, Specialties *** IO: Industrial Operations

CAS**-2% (+4%)

In € million, ∆% yoy, () = Fx & portf. adjusted

*before special items

MaterialScience €2,864m; 0% (+4%)

Price-2%

Volume+6%

Fx-4%

Portfolio0%

1,532694

IO***-10% (-9%)

Q2‘13 Q2‘14 Q2‘13 Q2‘14

Adj.EBITDA*

Adj.EBIT*

274 270 -2%

112126

483

155

• Q2 2014 Investor Conference Call • Marijn Dekkers

Polyurethanes-1% (+3%)

Polycarbonates+5% (+8%)

+13%

() = Fx effect in € million

(-10)

Q2 2014 –Full-Year Group Guidance Maintained

Page 12

20132014E

(Avg. Fx rates Q4’13)2014E

(Spot Fx rates as of June 30, 2014 for 2H’14)

Sales €40.2bn~5% to

~€41-42bn(neg. FX effect approx. -2%)

~6% to~€41bn

(neg. FX effect approx. -4%)

adj. EBITDA €8.4bnlow- to mid-single-digit % increase

(neg. FX effect approx. -5%)

low- to mid-single-digit % increase

(neg. FX effect approx. -6%)

core EPS €5.61mid-single-digit %

increase(neg. FX effect approx. -6%)

mid-single-digit % increase

(neg. FX effect approx. -9%)

Sales ∆ Fx and portfolio adjusted, EBITDA before special items

Outlook depends on specific planning assumptions as detailed in the Annual Report• Q2 2014 Investor Conference Call • Marijn Dekkers

Q2 2014Bayer Continues Positive Business Development

July 30, 2014 / Marijn Dekkers, CEO

• Q2 2014 Investor Conference Call • Marijn Dekkers Page 13