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Science For A Better Life

28th Annual J.P. Morgan Healthcare Conference


Arthur J. Higgins CEO Bayer HealthCare January 12 2010

Important Information

This presentation may contain forward-looking statements which are 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 which are available on our website. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Bayer Embarked on Diversification in HealthCare Long Before it Became the New Industry Paradigm
The New Healthcare Industry Paradigm

Diversification

Specialty Pharma & Biologicals

Generics

Vaccines

Focus in R&D

Emerging Markets

Biobetters / Biosimilars

Personalized Medicine

Key Elements of Bayers Diversified Healthcare Strategy since 2004

Back in 2004, only few of Bayers peers followed a diversified healthcare strategy In 2009, this strategy is followed by almost every major pharma company
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 1

Building Bayers Diversified HealthCare Business


Expanding Consumer Health Strengthening Specialty Pharma Investing in Emerging Markets Entering New Therapeutic Areas Divesting Non-core Assets
Acquisition of Roches OTC business Acquisition of TopSun, Sagmel Mission Pharmas OTC calcium supplements

Exiting the U.S. primary care market Acquisition of Schering AG Maxy VII, oncology pipeline assets, Direvo Biotech

TopSun, Sagmel to strengthen presence in China and Eastern Europe Biotons SciLin insulin in China R&D-center in China

Riociguat (pulmonary hypertension) VEGF Trap-Eye (eye diseases) Possis Medical (thrombectomy devices)

Diagnostic systems business Blood plasma products Hematological cancer products

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 2

The Success of Bayers Diversified Healthcare Model is Evident


million
Sales 15,407

Pharmaceuticals
Global #6 in specialty pharmaceuticals Leading positions in key therapeutic areas Underweight in US, overweight in emerging markets Transformational late-stage pipeline

Sales 8,058 uEBIT 2,764

Consumer Care
Global #2, outpaced market growth in 11 out of last 13 years

Medical Care
#3 in blood glucose monitoring Market leader in fluid injection systems for diagnostic imaging

uEBIT 1,037 18%

27%

Animal Health
Global # 3/5 in companion animal and in livestock farming
uEBIT: underlying EBIT : underlying EBITDA-margin

2004

2008

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 3

Bayer HealthCare is Already Among the Most Diversified Healthcare Companies in the World
Percent of total sales

21 47 35 34

16

14

12

Non-Pharma

64 92 94

84 79 53 65 66

86

88

Pharma

36

J&J

Abbott

BHC

Novartis Roche/ Pfizer/ Genentech Wyeth

GSK

Merck/ SGP

Lilly

AstraZeneca

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 4

Q309 Again a Strong Quarter for HealthCare


Q309 Sales
In million, % y-o-y Consumer Health +5% (+5%)

Earnings
Underlying EBITDA 1,141 1,018 Underlying EBIT +12% 786 +12%

Pharma +3% (+4%)

1,388 2,548

700

765

+9%

703 444

475 311

+7% +20%

318
HealthCare 3,936m; +4% (+4%)
( ) Currency & portfolio adjusted
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 5

376

+18%

259

Q308 Q309

Q308 Q309

Bayer HealthCares Platforms for Growth

Specialty Pharma & Consumer Health

Exciting opportunities to fuel growth

Leading Position in Emerging Markets

Exploiting the growth opportunity in emerging markets

Exciting Pharma-Pipeline

Late-stage assets potentially transformational

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 6

Specialty Pharma & Consumer Health

Consumer Health 5.4bn

10.0bn Pharmaceuticals Bayer HealthCare 15.4bn (2008)


Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 7

Nexavar has Become the Main Contributor to Growth in 2009


Unabated above market growth of Nexavar
180 160 140 120 100 80 60 40 20 0

Strong foundation of an emerging oncology franchise Dual-targeted mechanism antiangiogenic and antiproliferative Approved for kidney cancer (RCC) and for liver cancer (HCC) - only approved drug with overall survival benefit in HCC Peak sales potential in RCC and HCC combined ~EUR 750 million Exploring potential in additional cancer indications Exciting late-stage oncology pipeline assets beyond Nexavar

Sales per Quarter (Euro million)

FY2006 130m

FY2007 270m

FY2008 462m

9M09 445m

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 8

Growing Competence in Biologicals


Marketed Biological Products
Kogenate
Global number 2 in hemophilia treatment Attractive growth potential Only company with a long-acting recombinant factor VIII (Kogenate Liposomal) in clinical trials Kogenate Liplong phase II trial underway Long-acting formulation expected to increase prophylactic use of factor VIII

Biological Pipeline Projects


VEGF Trap-Eye (Eye Diseases) Kogenate Liposomal (Hemophilia) Alemtuzumab MS (Multiple Sclerosis) Recombinant factor VIIa (Hemophilia) L19 product family (Cancer) Promising pre-clinical pipeline

Betaseron
Longest studied multiple sclerosis therapy with more than 17 years of clinical experience

Attractive biological pipeline assets Early pipeline and technology base strengthened

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 9

Expanding our Womens Healthcare Business


World-leader in Womens Healthcare Comprehensive portfolio in female contraception, menopause management and gynecological therapies Continuous portfolio expansion underway
YAZ launched in Europe YAZ plus with folic acid filed Qlaira, a new oral contraceptive with body-identical estrogen launched in EU; U.S. submission in 2009 Mirena intrauterine system: label expansion for heavy menstrual bleeding in the U.S. Visanne: cleared for approvals in EU for treatment of endometriosis, launch planned for 2010 Start of phase III program for FC Patch, the smallest, lowest dosed patch for female contraception

Targeting continued growth of our Womens Healthcare franchise

Key brand logos only


Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 10

Consistent Market Outperformance at Consumer Care


% yoy* Sales Growth at Consumer Care

Attractive underlying growth drivers


Ageing population Health becoming more consumer-centric Shifting healthcare cost to consumers Emerging markets

9 8 7 6 5 4 3 2 1 0 2006 2007 2008 Q3 2009

Powerful brands Global #2 Strong regional footprint Proven track record of marketing excellence

Historic average market growth corridor Bayer Consumer Care growth rate
*) Fx and portfolio adjusted

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 11

Strong Brands that can Deliver Above Market Growth in Attractive Consumer Health Segments
Market Segment Market Growth** Selected Bayer Brands

Analgetics/Cough Vitamins Dermatologicals

2-3% 3-4% 3-4%

Gastrointestinals

3-4%

Blood Glucose Testing Animal Health

5-6% 3-4%

13 Consumer Health brands with annual sales of more than Eur100m each*
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 12

*) FY 2008

**) CAGR08-13e

Leading position in emerging markets

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 13

Emerging Markets Expected to Drive Future Pharma Market Growth


Developed Pharma Markets
U.S., Europe, Japan Developed pharma market growth of 3-7% p.a. expected Growth prospects dampened by
Ongoing cost-containment efforts by healthcare payers Increased generic competition Imposition of price cuts on existing drugs Raising of standards to achieve reimbursement of innovative therapies

Pharmemerging Markets
E7 pharmemerging markets of Brazil, Russia, India, China, Mexico, South Korea, Turkey E7 pharma market growth of 13-16% CAGR08-13 expected Chinas pharma market should continue to grow at a 20+% p.a. Growth drivers in E7 pharma markets:
Increased purchasing power Expansion of health insurance Continued urbanization Ageing - increases in chronic disease

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 14

Source: IMS

Bayers Pharma Business is Underexposed to the U.S. Market


U.S. Exposure of Pharmaceutical Companies**
Pfizer/Wyeth* Merck/SGP* E. Lilly BMS AstraZeneca GSK Roche Novartis SanofiAventis Bayer

The U.S. pharma market represents ~40% of the global market 23% of Bayers global pharma sales generated in the U.S. (2008) No direct exposure to the U.S. primary care market Limited Medicare/Medicaid exposure Portfolio focused on specialty pharma and biologicals:
60

23 0 10 20 30 40

Average

50

% US Sales of Global Pharmaceutical Sales (2008)

Oncology Hemophilia Womens Healthcare Multiple Sclerosis

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 15

*) pro-forma **) selection

But is a Top Tier Performer in Emerging Markets


million

2008 Sales of Bayer Pharma in E7 1.5bn (+ 22% yoy*)

Turkey India South Korea


169
20 (+14%) (+29%)

E7 pharmemerging markets represent ~10% of the global pharma market but 15% of Bayers global pharma revenues (2008) General Medicine portfolio as a key growth platform Growth in E7 continued in 9M2009: + 9%* Bayer is the among the top 3 international healthcare companies in China

PR China
386 (+53%)

146 (+14%)

Russia

214 (+40%) 247 (+8%)

287 (+6%)

Brazil

Continued investment in emerging markets


Infrastructure Sagmel (Eastern Europe) TopSun (China) Biotons SciLin insulin (China)

Mexico

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 16

E7: Brazil, Russia, India, China, Mexico, South Korea, Turkey *) all growth rates Fx adjusted

Exciting Pharma Pipeline

R&D Focus on Cardiology Womens Healthcare Oncology Diagnostic Imaging

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 17

Our R&D Pipeline Provides a Balanced Mix of NME and LCM Opportunities
Phase I (8)
Colorectal Cancer L19-TNFalpha Gastro IBD Lipoxin Cancer MN Immunoconjugate Cancer PI3K Inhibitor Cancer MEK-Inhibitor Hemophilia rec. Factor VII DIC: Short-acting Thrombosis Inhibitor Diagnostic Imaging PET-Tracer Acute Heart Failure Cinaciguat (sGC Activator) DME VEGF Trap-Eye PH-COPD Riociguat (sGC Stimulator) PH-ILD Riociguat (sGC Stimulator) Lung / Ovar / Prostate Sagopilone (ZK-EPO) Cancer Regorafenib Cancer L19-SIP

Phase II (15)
Liposomal Formulation Kogenate Breast Cancer Nexavar Ovarian or Peritoneal Cancer Nexavar CRC Nexavar Additional Indications Nexavar Lung Infection Cipro inhale OC E2+DRSP Gram-negative Pneumonia Amikacin inhale Medical ill Xarelto SPAF Xarelto VTE Treatment Xarelto wet AMD VEGF Trap-Eye CRVO VEGF Trap-Eye

Phase III (19)


NSCLC Nexavar Thyroid Cancer Nexavar Multiple Sclerosis Alemtuzumab Bone Met. Prev. Breast Cancer Bonefos OC YAZ Flex Menopausal Management Angeliq low-low Contraception LCS (ULD LNG) Contraception FC Patch Low MRI LCM Gadovist

PAH Riociguat (sGC Stimulator) CTEPH Riociguat (sGC Stimulator) ACS Xarelto HRPC Alpharadin Alzheimer PET Imaging Florbetaben

Status as of Jan 2010


New molecular entities (NME) Life cycle management (LCM) Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 18

Key Pharma Pipeline Assets Hold Significant Promise


What it does Status 1st indication launched/ filed; phase III phase III launched, additional indications in phase II/III phase II, phase III initiation early 2010e phase III phase III

Cardiology

Xarelto Riociguat Nexavar

inhibits blood clot formation lowers blood pressure in the lung inhibits enzymes important for tumor growth inhibits enzymes important for tumor growth targeted treatment of bone metastases in prostate cancer inhibits formation of new blood vessels

Oncology
Eye Diseases

Regorafenib Alpharadin VEGF Trap-Eye

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 19

Xarelto Target Indications With High Unmet Medical Need

Thromboembolism is the single largest cause of morbidity and mortality in the Western world In the US, VTE affects almost 1 million people each year and is responsible for more deaths each year than breast cancer, HIV disease, and motor vehicle crashes combined VTE is the third most common cardiovascular disease in the Western world, and contributes to around 10% of hospital deaths Almost all of the hospital deaths resulting from pulmonary embolism are preventable
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 20

Xarelto And The Market For Anticoagulants


Estimated treatment days in 2007* (in millions)

30

VTE prevention after orthopedic surgery Launched / filed (US)

120

VTE treatment PH III Primary prevention (excl. orthopedic surgery) PH III in VTE prevention in medically ill patients Secondary prevention Acute Coronary Syndrome (ACS) PH III

340

440
Stroke prevention in Atrial Fibrillation PH III

1,300

Xarelto: Target Indications


Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 21

*Sources: PADDS, IMS Midas, BAYER estimates Decision resources

Comprehensive Late-Stage Development Program for Xarelto


Market
Acute Indications

Study

Facts
>12,500 patients vs. standard therapy (enoxaparin) ~8,000 patients vs. standard therapy (enoxaparin)

Phase II

Phase III

Filing
launched filed (U.S.)

VTE prevention after orthopedic surgery

VTE prevention in medically ill patients

2011e

Chronic Indications

~7,500 patients vs. standard therapy (enoxaparin & warfarin)

VTE treatment and secondary prevention

2010e

~14,000 patients noninferiority vs. standard therapy (warfarin) up to 16,000 patients in addition to standard therapy

Stroke prevention in atrial fibrillation

2010e

Secondary prevention ACS

2011/ 2012e

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 22

Excellent Clinical Profile of Xarelto Confirmed in Different Trial Settings


VTE prevention after hip- and kneereplacement
(RECORD 1 - 4) Phase III program, 12,729 patients Superior efficacy: 52% relative risk reduction* vs. enoxaparin Rates of major bleeding low and statistically not different in both groups No signal for liver toxicity no evidence for cardiovascular rebound Phase III trial, 1,197 patients Superior efficacy: 82% reduction of recurrent VTE vs. placebo Low incidence in major bleeding - not significantly different from placebo No signal for liver toxicity no increase in major adverse CV events Phase II dose-finding trial, 3,491 patients Significant 31% reduction in the risk of death, MI, or stroke vs. placebo** Dose dependent higher bleeding rate but no study arm was discontinued No signal for liver toxicity
*) Symptomatic VTE + all-cause mortality in pooled analysis of RECORD 1-4 **) Secondary efficacy endpoint
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 23

Extended secondary VTEprevention


(EINSTEIN EXT)

Secondary prevention in ACS (ATLAS ACS TIMI 46)

Xarelto Rich Newsflow Expected for 2010


Further phase III data from EINSTEIN trial program in DVT treatment Completion of ROCKET AF phase III trial in stroke prevention in Afib patients Completion of MAGELLAN phase III trial in VTE prevention in
medically ill patients

Filing in DVT treatment and in stroke prevention

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 24

Riociguat An Emerging Treatment For Pulmonary Hypertension


Pulmonary hypertension encompasses multiple disease subtypes. Currently treatments are only indicated for pulmonary arterial hypertension (PAH).
No. of patients

120,000

Pulmonary arterial hypertension (PAH) PH III Filing 2011E due to thromboembolic diseases PH III Filing 2011E due to lung disease PH II due to heart disease Under consideration Others

Approved products

>60,000

1,200,000

460,000

Riociguat
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 25

Riociguat Demonstrated Clinically Meaningful Improvement in Pulmonary Hypertension


6-minute walking distance test
Mean improvement over baseline after 12 weeks of treatment (in meters)

Open-label, uncontrolled phase II study involving 75 PAH and CTEPH patients Exercise capacity significantly improved
+ 23% in PAH-patients + 17% in CETPH-patients

+73.5
(p<0.001)

+64.3
(p<0.001)

Improvement on hemodynamic parameters, i.e. pulmonary arterial pressure, pulmonary vascular resistance Riociguat was well tolerated and had a favorable safety profile Phase III program in PAH and in CTEPH underway

PAH patients Baseline values: PAH: 317 m; CTEPH: 383 m

CTEPH patients

PAH: Pulmonary Arterial Hypertension CTEPH: Chronic Thromboembolic Pulmonary Hypertension


Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 26

Riociguat: Major Clinical Studies


Study
PATENT-1 / -2

Facts
~ 460 patients (treatment-nave or pretreated) vs.placebo (PATENT-1); Efficacy study and long-term extension

Phase I

Phase II

Phase III

Filing

Pulmonary Arterial Hypertension

2011e

CHEST-1 / -2

~ 270 patients vs.placebo (CHEST-1); Efficacy study and long-term extension

Chronic Thromboembolic Hypertension

2011e

NCT00694850 (PH with ILD) NCT00640315 (PH with COPD)

~ 20 patients (PH with interstitial lung disease - ILD) proof-of-concept; efficacy and dosefinding ~ 20 patients (PH with chronic obstructive pulmonary disease COPD) Single-dose hemodynamic study

PH with ILD

Phase III decision in 2010

PH with COPD

ILD: Interstitial Lung Disease; COPD: Chronic Obstructive Pulmonary Disease


Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 27

Comprehensive Development Program For Nexavar Underway


Signal-generating phase II-trials
Breast cancer
Paclitaxel Nexavar Capecitabine Nexavar Gemcitabine Nexavar Docetaxel or letrozole Nexavar

Phase III-trials
Liver cancer
Adjuvant therapy vs. placebo (STORM-trial) Combination therapy with erlotinib (Tarceva)

Kidney cancer
Adjuvant treatment vs. placebo (EU) Adjuvant treatment (ECOG)

Ovarian cancer
Maintenace treatment after 1st-line treatment

Non-small cell lung cancer


1st-line combination therapy with gemcitabine and cisplatin (NExUS-trial) 3rd/4th-line monotherapy in NSCLC

Colorectal cancer
1st-line treatment in combination with FOLFOX

Thyroid cancer
Nexavar monotherapy

Phase II/III highlights only

More than 200 active trials exploring Nexavars anti-tumor potential


Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 28

Nexavar Exciting First Results from Phase II Breast Cancer Program


Paclitaxel Nexavar
HER-2 negative, locally advanced or metastatic breast cancer Double-blind, randomized, placebo controlled phase II trial 237 patients (first line) Combination of Nexavar + Paclitaxel demonstrated a positive trend towards improvement of progression-free survival (p=0.09).

Capecitabine Nexavar
HER-2 negative, locally advanced or metastatic breast cancer Double-blind, randomized, placebo controlled phase II trial 229 patients (first and second line) Combination of Nexavar + Capecitabine significantly improved median progression-free survival by 74% vs. Capecitabine + Placebo (6.4 months vs. 4.1 months; HR=0.567, p=0.0006)*

Phase III in breast cancer to be initiated in 2010


Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 29

*reported at ECCO/ESMO September 23, 2009

Nexavar - Upcoming Newsflow

Start of phase III breast cancer program in 2010 Additional phase II data from breast cancer program expected Completion of NExUS phase III trial in non-small cell lung cancer planned
in 2010

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 30

Regorafenib (DAST-Inhibitor): A Novel Anti-Cancer Compound


Kidney Cancer (RCC)
Phase II, open-label study in kidney cancer with regorafenib (160 mg) administered once daily on a three weeks on/one week off schedule (n=49) 31% partial response (PR, RECIST) 50% stable disease (SD) rate

Regorafenib is an orally active multikinase inhibitor Distinct profile targeting angiogenic, stromal, and oncogenic receptor tyrosine kinases Potential for clinical differentiation from other VEGF-receptor inhibitors Phase III development program planned to be initiated in early 2010

Colorectal Cancer (CRC)


Phase I dose-finding study in patients with advanced colorectal cancer (n=38) 74% disease control rate in evaluable patients

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 31

Alpharadin: Potential Targeted Treatment of Bone Metastases in Prostate Cancer


High incidence of bone metastases in advanced cancer types
65-75% 65-75%

Alpha-emitting radiopharmaceutical based on 223Radium delivering highly energetic, short ranging radiation Radium as natural bone seeker targets new bone growth in and around metastases

60% 30-40%

Phase II findings in prostate cancer:


>40% overall survival improvement (p=0.017) Pain control enhanced quality of life Significant PSA reduction Excellent safety profile 20-25%

Phase III in symptomatic hormone-refractory prostate cancer data expected end 2011 Potential in additional cancer types to be evaluated

Prostate Breast

Thyroid

Lung

Kidney

Inlicensed from Algeta

VEGF Trap-Eye: Clinical Program Expanded to Additional Eye Diseases


Wet AMD
Wet age-related macular degeneration is a leading cause of acquired blindness Exciting phase II results (CLEAR-IT 2): improvement in vision after 3 months of fixed dosing maintained during a 21-month as needed (PRN) dosing phase Potential for less frequent dosing with similar gain in vision compared to existing standard of care Phase III program (VIEW 1,2) underway and fully enrolled (> 2,400 patients)

DME / CRVO
Diabetic macular edema (DME) Phase II trial (DA VINCI) comparing VEGF Trap-Eye vs. laser treatment fully enrolled Primary endpoint: Change in best corrected visual acuity from baseline to week 24

Central retinal vein occlusion (CRVO) Phase III program underway (COPERNICUS, GALILEO) Comparing VEGF Trap-Eye vs. sham control injection Primary endpoint: visual acuity change vs. baseline after 6 months of treatment

Initial data from the VIEW program could be expected end of 2010
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 33

Significant Newsflow From Pharma Pipeline Expected in 2010


selection

Further data from EINSTEIN program in DVT treatment Xarelto Completion of ROCKET AF trial in stroke prevention in Afib patients Completion of MAGELLAN trial in VTE prevention in medically ill patients Filing in DVT treatment and in stroke prevention Nexavar Regorafenib VEGF-Trap-Eye Riociguat Visanne Phase III initiation in breast cancer Completion of NExUS lung cancer trial Initiation of phase III (colorectal cancer 3/4th line) First data from phase III program in wet-AMD (VIEW program)
Phase III decision for PH-ILD and PH-COPD Launch for treatment of endometriosis (EU) Xarelto (VTE prevention after hip/knee replacement surgery) (US)

Potential newsflow from products in registration

Qlaira (OC and treatment of heavy/prolonged menstrual bleeding) (US) Levitra orodispersible tablet (US, EU) YAZ plus (US)

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 34

Bayer HealthCare Platforms for Growth

The success of Bayers diversified Healthcare model is evident Attractive opportunities to fuel growth Exciting pharma pipeline - potentially transformational Targeting slight sales growth for Q409 versus strong Q408 and to improve the underlying EBITDA margin toward 28% in FY2009

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 35

Appendix

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 36

HealthCare Posted Record Performance And Achieved All Targets in 2008


FY 2008 Sales
15.4bn, +7% yoy*
DC +6% (Market: ~6%)

FY 2008 underlying EBITDA

4,157
Consumer Health BMS 1,238 BCS

+10%

AH +6% (Market: ~4%)

1.4

1.0
CC +6% (Market: ~4%) 3.0

10.0

Pharma

2,919

million

PH: Pharmaceuticals CC: Consumer Care AH: Animal Health DC: Diabetes Care, now Medical Care

PH +7% (Market: ~5%)


* Currency & portfolio adjusted Figures in new reporting structure since Jan. 2009

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 37

HealthCare: Key Financials


In million Sales EBITDA underlying EBIT underlying Gross cash flow Net cash flow CapEx Operating free cash flow R&D Capital invested (average) CFRoI FY 2007 FY 2008 14,807 3,792 2,492 2,389 2,010 593 1,417 1,700 21,608 11.1 % 15,407 4,157 2,764 3,045 2,259 610 1,649 1,742 22,380 % +4.1 +9.6 +10.9 +27.5 +12.4 +2.9 +16.4 +2.5 +3.6 9M08 11,267 3,062 2,005 2,142 1,410 9M09 11,824 3,314 2,237 2,381 2,274 % +4.9 +8.2 +11.6 +11.2 +61.3

13.6 % +2.5 pp

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 38

Key HealthCare Products


In million
YAZ / Yasmin / Yasminelle Betaferon / Betaseron Kogenate Aspirin Adalat Contour Avelox Nexavar Mirena Levitra Ciprobay Advantage Glucobay Ultravist Magnevist

Indication
Pharma / Contraception Pharma / Multiple sclerosis Pharma / Hemophilia A Pharma, Consumer Care / Cardio, Pain Pharma / Hypertension, CHD Medical Care / Blood Glucose Meter Pharma / Bacterial infections Pharma / Cancer Pharma / Contraception Pharma / Erectile dysfunction Pharma / Bacterial infections Animal Health / Parasiticide Pharma / Diabetes mellitus Pharma / Diagnostic imaging Pharma / Diagnostic imaging

FY2008
1,222 1,144 848 719 626 554 462 462 462 341 338 329 304 261 241

%yoy*
22.2 15.0 7.3 7.3 3.9 18.4 7.8 75.7 35.5 7.0 -8.9 11.1 1.8 16.5 -17.4

9M09
964 904 680 521 473 442 313 445 367 265 253 275 243 190 166

%yoy*
4.4 5.5 1.4 -1.7 -3.3 7.1 -9.3 29.3 5.7 3.4 1.1 0.8 -2.0 -0.3 -14.6
*) Currency adjusted

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 39

Portfolio Focus on Specialty Pharmaceuticals


~70% of our pharma portfolio is specialty Leading positions in key therapeutic categories
Number 1 in Womens Healthcare Number 2 in Hematology Number 1 in Diagnostic Imaging

General Medicine 31% PharmaSales 2008 10.0bn 9% Diagnostic Imaging 31%

Womens Healthcare 29%

Emerging player in oncology


Specialty Medicine

Focus on biologicals
Representing ~20% of sales

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 40

Consumer Care: Global Presence in Key OTC-Areas


Cardio Cough/ Cold Gastro 7% Other Analgesics 25%

5% 2%

63bn OTC market growing 4% (Fx adj.) in 2008 Targeting to outpace global OTC market growth Globally recognized brands (i.e. Aspirin, Aleve, Canesten, Bepanthen, Supradyn, One-a-Day, Alka Seltzer)

12%

21% Dermatology/ Intendis

28% Nutritionals

Growth drivers:
Leveraging strong brands Aging population / HealthCare systems Emerging markets

2008 Sales: 3.0bn

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 41

Medical Care: Global Business Strength


Global company sales ranking
Company
1 Roche 2 J&J/Lifescan 3 Bayer Medical Care* 4 Abbott Diabetes Care 2008
(in million)

1,862 1,649 1,395 934

2008 was the third straight year as fastest growing blood glucose monitoring company Portfolio expansion through acquisition and new product launches Medrad is market leader in medical devices for diagnostic imaging procedures and cardiovascular applications

*) Diabetes Care (2008): 970m Medrad (2008): 425m


Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 42 Source: Company reported, IMS, BBC, Kalorama Information, Bayer estimates

Animal Health: Building The Advantage Brand


Advantage Sales Progression
million

Bayer Animal Health Position Ranked #3 in CAP


Well positioned in fast growing and profitable market segment 20% market share in parasiticides Continuous expansion of Advantage product family, a leading brand for paraside control in pets

314 275 249 206

329

196

2003

2004

2005

2006

2007

2008

Ranked #5 in FAP
Strong position in parasiticides and anti-infectives
CAP: Companion animal products FAP: Food animal products

2007 2005

2003 1996

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 43

Reporting Events and AGM

Date Wednesday, February 24, 2010 Friday, February 26, 2010 Thursday, April 29, 2010 Friday, April 30, 2010 Thursday, July 29, 2010 Thursday, October 28, 2010

Event Supervisory Board Meeting

Publication Dividend Proposal

Investor Conference Call

Full Year 2009 Results Annual Report First Quarter Results Stockholders Newsletter

Investor Conference Call

Annual General Meeting

Investor Conference Call

Second Quarter Results Stockholders Newsletter Third Quarter Results Stockholders Newsletter

Investor Conference Call

Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 44

Investor Relations Contacts


Dr. Alexander Rosar Head of Investor Relations Phone: +49-214-30-81013 E-mail: alexander.rosar@bayer-ag.de Dr. Jrgen Beunink Phone: +49-214-30-65742 E-mail: juergen.beunink@bayer-ag.de Ilia Krten Phone: +49-214-30-35426 E-mail: ilia.kuerten@bayer-ag.de Dr. Olaf Weber Phone: +49-214-30-33567 E-mail: olaf.weber@bayer-ag.de
Bayer Investor Presentation J.P. Morgan Healthcare Conference 2010 Page 45

Peter Dahlhoff Phone: +49-214-30-33022 E-mail: peter.dahlhoff@bayer-ag.de Judith Nestmann Phone: +49-214-30-66836 E-mail: judith.nestmann@bayer-ag.de