November 2012 | London

Investing in the planet’s futurethrough innovation in agriculture

David Nicholson, Head of R&D, Bayer CropScience

• CropWorld • November 2012Page 1

• CropWorld • November 2012

The crop protection industry is seeing a decline of active ingredients in development

Page 2

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

10

20

30

40

50

60

70

80

a.i.s. in development

Source: Phillips McDougall Oct 2012

• CropWorld • November 2012

R&D investments in Seeds and Traits are superseding small molecules

Page 3

Source: Phillips McDougall Oct 2012

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

500

1000

1500

2000

2500

3000

3500

Agrochemical R&D Seed and trait R&D

US

$ m

illio

n

• CropWorld • November 2012

At Bayer CropScience, our strategyinvolves refocusing innovation approaches

• We’re raising overall R&D spending

to more than €850 million by 2015

• We’re increasing our Seeds R&D budget

to achieve a 50:50 Seeds/Biologics and

Chemistry ratio

• We’re shifting Crop Protection resources

into growth areas

Reinventing the future of agriculture beyond today’s solutions

AgChemSeeds

R&D spending by businesses in € million

Page 4

0

200

400

600

800

1000

20102005 2015 E

664722

>850

• CropWorld • November 2012

To fuel our four-pillar R&D strategy, we’re investing €5 bn in innovation from 2011–2016

World-class

R&D portfolio

Delivering sustainable crop solutions to beat customer expectations

Investing equally in Seeds/ Biologics and Chemistry to create integrated & effective global R&D organization

Expanding network of collaborations to leverage full potential of open innovation

Exploiting expertise in Seeds, Biologics and Small Molecules to build a unique position in plant health

Sustainability

Collaboration

Plant Health

Rebalancing Innovation

Page 5

• CropWorld • November 2012

In addition to our R&D investments in Seeds and Small Molecules, Biologics is now our third focus area

Abiotic Stress Resistance

Plant Growth Promotion

Yield Increase

Insect/Disease/Weed Control

BiologicsSmall

MoleculesSeeds

Differentiated integrated solutions

Page 6