Iberogast Brand Overview

South Asia Country Group;

Mike Seidel, May 21st, 2015

Iberogast

Every day, more people around the world feel

The Power of Nature

Page 2
It has that power

Iberogast changes people’s lives.

Page 3
Iberogast is unique

• There is simply nothing like it

• A natural remedy
• Relieves multiple digestive symptoms
• The most studied natural OTC product worldwide

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The best of both worlds for the GI consumer

Synthetic, Iberogast
chemical product
Natural, herbal Herbal products
Can be harsh
Effective Natural,
Effective,
but no clinical
but usually Relieves multiple
evidence
only treats a digestive symptoms
single symptom

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9 specially-selected plant extracts

• Combined in a patented process

• Ensures the effectiveness of the plants’ medicinal properties

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 Relieves a full range of unpleasant symptoms

Abdominal Fullness
pain & cramps

Bloating Heaviness

Flatulence Nausea

Page 7
Abundant Clinical Efficacy / Safety Data!

Clinical Studies / surveillance reports Number of patients

2 Meta-analyses
661
(FD)

5 Controlled clinical studies (FD)

1105
1 controlled clinical study (IBS)

13 part. opened clinical studies,

6143
3 post marketing surveillances (FD, IBS)

1 Retrospective Cohort study

961
(FD)

2 Experience Reports with children up to 12 years

43’311
(functional GI diseases)

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A Reliable Product Attracts Loyal Consumers

• #1 OTC GI product in Germany

• #6 among all OTC products in Germany

• Recommended by doctors and pharmacists

• High consumer loyalty and trust

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Right Tools: HCP Activation Toolkit

• Educating HCP is critical

• Practice-specific materials

• E-detailer

• POS and Point of Contact

materials

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Toolkit - Overview

Press
Trade Ad Release

Page 11
Right Tools: DTC Communication

Page 12
 Iberogast Success

Page 13
A History of Growth in Germany

50.1

44.6
41.2
37.1
32.8
30.8
28.4
25.4
23.0
20.1 20.3
18.3 18.3
15.4
13.5
12.0
9.8 10.5
8.6
6.3
4.9

Iberogast Gross Sales in Mio € - 1994 - 2014

Page 15
400
500
600
700
900
1000

800
2011/5
2011/6
2011/7
2011/8
2011/9
2011/10 2011
2011/11
‘000 units / Offtake

2011/12
2012/01
2012/02
2012/03
2012/04
2012/05
2012/06
2012/07
2012/08
2012

2012/09
2012/10
2012/11
2012/12
13/1
13/2
13/3
13/4
13/5
13/6
13/7
13/8
2013

13/9
13/10
13/11
13/12
14/1
14/2
14/3
14/4
14/5
14/6
14/7
Iberogast Sales Accelerating in Germany

14/8
2014

14/9
14/10
14/11
14/12
15-Jan
15-Feb
15-Mar
15-Apr
Iberogast Sales Taking Off in Spain
140
‘000 €/ Offtake

120
122 • Launched in 2012 (distributor Heel)
• Business model: HCP
• Launch in September 2014 with BAYER
100 101
99 • Activation Plot : Pharmacy detailing & POS
92
95 • DTC in 2015

80 78

68

60 61
57 58

40 41 41 42
38 38 40

20

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 DTC Activation is Successfully Driving Sales
in Russia

Iberogast weekly Off-take in RUR as per DSM

9000000
TV Flight TV Flight TV Flight
8000000

7000000

6000000

5000000
RUR

4000000

3000000 Start of Tv campaign

2000000

1000000

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
January January January January January February February February February March March March March April April
2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015
Weeks

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Source: DSM
Overall Iberogast in April YTD +60.5% VYA
Exceeding Budget Expectation.
World Net Sales - Top 30 - April 2015
Brand by Country

Iberogast
Month April YTD April Full Year
000 Euro Actual Var. Bud Var. vs. PY Actual Var. vs. Bud Var. vs. PY Actual Budget Var vs PY
2015 local % total % 2015 total % total % 2014 2015 total %
Germany 3,241 85.3% 115.5% 19,516 22.4% 31.7% 45,361 46,228 1.9%
Russian Fed. 504 27.0% 0.0% 1,555 -9.9% 0.0% 1,117 7,594 ++
Switzerland 290 1.6% ++ 1,179 6.1% ++ 1,658 2,959 76.4%
Spain 285 90.2% ++ 744 50.0% ++ 658 1,559 136.8%
Austria 277 5.8% 77.7% 1,047 0.9% 140.1% 2,335 3,025 29.5%
Australia 102 -18.7% 12.6% 322 -23.2% ++ 269 1,589 ++
Canada 96 0.0% 80.0% 96 0.0% -25.1% 317 - 0.0%
Ukraine 76 ++ 0.0% 195 175.1% 0.0% 330 327 28.7%
Czech Republic 56 44.9% 85.0% 104 -38.3% -29.3% 417 412 2.0%
Netherlands 52 11.7% ++ 243 71.3% ++ 385 550 42.8%
Croatia 46 ++ ++ 82 66.8% 55.6% 152 150 -1.1%
Slovenia 32 33.4% 0.0% 92 -0.3% 27.5% 201 270 34.2%
Belarus 28 ++ 0.0% 123 ++ 0.0% 34 106 ++
Kazakhstan 25 9.4% 0.0% 26 -73.4% 0.0% - 215 0.0%
Canary Islands 17 0.0% 0.0% 44 0.0% 0.0% 21 - 0.0%
Sweden 15 83.7% 0.0% 102 ++ 0.0% 84 96 18.9%
Poland 14 -87.1% -85.2% 284 -18.4% 88.9% 526 1,258 150.3%
Hungary 10 158.8% 0.0% 22 19.2% 29.5% 48 52 11.7%
Serbia 10 -34.5% 0.0% 69 29.9% 0.0% 46 150 ++
Lithuania 5 0.0% 0.0% 14 0.0% 0.0% - - 0.0%
Montenegro 2 0.0% 0.0% 15 0.0% 142.7% 13 - 0.0%
Latvia 1 0.0% 0.0% 10 0.0% 0.0% - - 0.0%
Estonia 1 0.0% 0.0% 7 0.0% 0.0% - - 0.0%
Total World 5,185 58.4% 160.1% 25,950 18.5% 60.5% 54,209 66,867 27.1%

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Overall Iberogast is highly profitable with
Margins around 82%.
 Iberogast Strategic Summary

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How to win
Core Strategic Summary
“Natural and effective” multi-symptom solution
Strategic Objective 1
Enter new and develop
existing markets.
Activities
- Successfully launch in
Russia with HCP & DTC
approach
- Invest in existing markets
to further establish the
brand
- Roll-out into new
geographies (Latin
America & APAC)
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Strategic Summary Statement
Enter the Lower GI category as the only
Strategic Objective 2
Build credibility and
trust of “natural and
effective” proposition
through HCP activation
Activities
- Leverage HCP toolkit
targeting Pharmacists,
General Practitioners and
Gastroenterologists
- Leverage Iberogast’s
wealth of clinical studies
and KOLs endorsement
- Utilize Global e-detailer
Strategic Objective 3
Accelerate growth via
compelling DTC
communication
Activities
- Leverage consumer
segmentation to effectively
activate target consumer
- Develop first ever TVC for
global reapplication
- POS and Digital activation
- Develop new packaging
design
Strategic Objective 4
Extend into adjacent
Lower GI segments
Activities
- Roll out Iberogast Balance
(probiotics plus natural
fiber)
Develop additional
-
innovations targeting new
consumer segments
New Iberogast Drops Design
current new

With the new design, we …

• kept the natural color coding of green & while.
• developed an EBU stressing the naturalness with the
“leaf shaped” background, but kept the Iberogast font.
• kept the Iberogast stomach icon.
• strengthened the “9 herb treatment” message.
• kept the list of symptoms.
• visually included the format via the drop icon, which is
helping us in the future to differentiate from potential
other galenics.

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 Not yet offically rolled out.

NEW Iberogast Range Design

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Hardware – Roll out guidance

3
Extend to additional
Lower GI indications
Eg. Diarrhoea
Portfolio/Hardware

2
Extend to constipation driven
symptoms via probiotics
Iberogast Balance (Probiotics plus natural fiber)

1
Establish “Natural and effective multi-symptom relief” equity
Iberogast drops, 20, 50 and 100ml
– Launch 20ml to drive trial and 50ml to drive consumption frequency
(launch100ml only after brand is well established and if out of pocket allows)

Time

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 Marketing Excellence

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 Our scope of market is broad and includes all consumers
addressing their digestive symptoms with any remedy

ADDRESSING refers to taking

something specifically in
DIGESTIVE SYMPTOMS All consumers suffering from response to or in anticipation
refer to: digestive symptoms of digestive symptoms, incl.:
(~74.3m)
 Abdominal pain, cramps,  OTCs:
colic – Traditional1
 Constipation, hard stool – Herbal
Consumers addressing – Probiotic
 Diarrhoea, runny stool
 Feeling of fullness, their digestive
heaviness, bloating symptoms  Non-OTCs
 Flatulence, passing gas, (~55.0m) – Herbal teas or infusions
gastrointestinal rumbling – Probiotic yoghurts or other
 Trapped wind fortified foods
– Specific foods or fruits
* Upper GI symptoms – Homeopathic remedies,
(heartburn, indigestion etc.) enzymes , charcoal tablets,
are not included in scope hot-water bottles

OUR SCOPE OF MARKET

Note: Market size defined by total market population, % population aged 18-69, % population in considered social classes and urban areas, % sufferers
Page 26 in all four markets; 1Traditional refers to non-herbal and non-probiotic OTCs
and % addressers
Source: UN WPP 2012; LGI Omnibus Study 2013
Growth Behavior

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 Lower GI Segmentation Frame
Vertical Axis
Suffer at least once a month Suffer less than once a month

18-34 35-54 55+ 18-34 35-54 55+

Constipation  The number of symptoms is the most significant driver of

Diarrhoea
consumer behaviour
Single-
symptom
– Addressing multiple symptoms drives consumers to use a
Abdominal pain or cramps larger repertoire of OTCs and for a longer period of time
Addresse
d Fullness, heaviness,
bloating
Gas
Flatulence or  The type of symptom addressed is another meaningful
trapped wind predictor of behaviour and preferences
Constipation with pain /
gas – Consumers tend to prefer more gentle remedies when
Multi- Diarrhoea with pain / gas
addressing their constipation
symptoms
Addresse – Probiotic OTCs are currently more frequently used when
Pain or cramps with gas
d addressing diarrhoea
Multiple gases

Source: LGI Omnibus Study 2013, LGI Quantitative Survey 2014; Monitor Deloitte Analysis
 Lower GI Segmentation Frame
Horizontal Axis
XX% = % of OTC occasions Suffer at least once a month Suffer less than once a month

18-34 35-54 55+ 18-34 35-54 55+

Constipation  Frequency of Suffering is also a powerful driver of attitudes

Diarrhoea
and behaviour in the category
Single-
symptom
– Frequency compels consumers to approach their health
Abdominal pain or cramps more proactively, and frequent sufferers are more likely to
Addresse
d Fullness, heaviness, be actively managing their digestive health
bloating
Gas
Flatulence or
trapped wind  Age is the most meaningful demographic variable; it is
Constipation with pain /
gas
especially strong at predicting preferences and remedy choice
Multi- Diarrhoea with pain / gas
– Older consumers tend to prefer natural and gentle
symptoms remedies more than their younger counterparts
Addresse
d Pain or cramps with gas

Multiple gases

Source: LGI Omnibus Study 2013, LGI Quantitative Survey 2014; Monitor Deloitte Analysis
 Lower GI Segmentation Frame
Segments
XX% = % of OTC occasions Suffer at least once a month Suffer less than once a month

18-34 35-54 55+ 18-34 35-54 55+

L1 L2
Constipation L1
6.4% 3.6%
L3 L4
Diarrhoea L3
Single- 4.5% 5.0%
symptom L5 L6
Abdominal pain or cramps 4.1% 6.0%
Addresse
d Fullness, heaviness, L7 L8 L9
L7
bloating 2.6% 3.1% 2.3%
Gas
Flatulence or L10 L11
trapped wind 7.8% 7.4%
Constipation with pain / L12 L13
gas 9.3% 3.9%

Multi- L14 L15

Diarrhoea with pain / gas 5.6% 5.9%
symptoms
Addresse L16 L17
d Pain or cramps with gas 7.5% 7.9% L18
7.3%
Multiple gases

Source: LGI Omnibus Study 2013, LGI Quantitative Survey 2014; Monitor Deloitte Analysis
Segment Prioritisation
Attractiveness, Size, & Ability to Win Criteria

ATTRACTIVENESS TO BCC SEGMENT SIZE BCC ABILITY TO WIN

 Proactivity COMPETITIVE  Strength of

towards LANDSCAPE competition
health
 Desire for
EASE OF  Source of
CONSUMER gentle /
SEGMENT INFLUENCE influence
BEHAVIOURS natural  Number of
SHARE OF
& remedies occasions
OCCASIONS
PREFERENCES  Usage of
OTCs (incl.  Sales &
BCC
duration Marketing
CAPABILITIES
and capabilities
repertoire)

Page 31
 Target Segment Selection
Key Segments for Iberogast, Iberogast Balance &
Miralax
XX% = % of OTC occasions Suffer at least once a month Suffer less than once a month

18-34 35-54 55+ 18-34 35-54 55+

L1 L2
Constipation L1
6.4% 3.6%
L3 L4
Diarrhoea L3
Single- 4.5% 5.0%
symptom L5 L6
Abdominal pain or cramps 4.1% 6.0%
Addresse
d Fullness, heaviness, L7 L8 L9
L7
bloating 2.6% 3.1% 2.3%
Gas
Flatulence or L10 L11
trapped wind 7.8% 7.4%
Constipation with pain / L12 L13
gas 9.3% 3.9%

Multi- L14 L15

Diarrhoea with pain / gas 5.6% 5.9%
symptoms
Addresse L16 L17
d Pain or cramps with gas 7.5% 7.9% L18
7.3%
Multiple gases

Source: LGI Omnibus Study 2013, LGI Quantitative Survey 2014; Monitor Deloitte Analysis
 Consumer Portrait
Segment L16 – Target Segment for Iberogast

 Suffer from frequent abdominal pain and
cramps, with heaviness, bloating and
other gases frequently (avg. 3.3x per
month vs. average 1.9)
 Their suffering is severe (84%* vs. average
71%)
 Their symptoms are highly bothersome as
they disrupt them from work and make
them irritable
 They believe their busy lifestyle and stress
at home and at work causes their digestive
symptoms

Younger
consumers (avg.
age: 33), more
likely to be
female (66%)

 They believe their symptoms are
interrelated and can be addressed with
one remedy (68%* vs. 63%)
 They are open to using herbal OTCs, as
they are mild and less damaging than
regular OTCs, however they worry they
are slow to act
 They currently use a broad repertoire to
address each of their symptoms (avg. 3.1
OTCs vs. 1.9)
 They use traditional OTCs (77%* vs. 60%),
typically an antispasmodic pain killer
 Few currently use herbal OTCs (17% vs.
20%)

* Statistical significance
Consumer Portrait®
Segment L16
Younger consumers (avg. age: 33), more likely to be female (66%)
 Segment L16 suffer from abdominal pain and cramps, together with heaviness, bloating and
other gases frequently (avg. 3.3x per month vs. 1.9); their suffering is considered severe (84%*
vs. 71%)
 Suffering from this combination of symptoms is highly bothersome for them; pain and cramps
are the most frustrating as this disrupts them from work and make them feel irritable
 They believe their busy lifestyle and stresses at work, and home, are the cause of their
digestive symptoms
 They want to be able to manage their multiple digestive symptoms at the same time; they
believe their symptoms are interrelated and can be addressed with one remedy (68%* vs. 63%)
– Being able to replace the multiple remedies they currently use would also reduce the risk of
damaging the body, be more convenient and cost-effective
 They are open to using herbal OTCs, which are considered to be milder and less damaging than
regular OTCs, however they worry they are slower to act – it is very important to them that they
have quick relief
 They currently use different OTCs to address each of their symptoms (avg. 3.1 OTCs vs. 1.9) as
these are the only remedies they know of which provide fast and effective relief
– They are likely to use traditional OTCs (77%* vs. 60%), typically an antispasmodic pain killer,
few are currently using herbal OTCs (17% vs. 20%)
Consumer Portrait®
Segment L16: Drivers + Barriers

 DRIVERS
 BARRIERS
 Seek fast-acting remedies to quickly relieve  Believe antispasmodic painkillers and anti-
their digestive symptoms flatulents are effective and appropriate for
their needs
 Believe one remedy can be effective for
multiple digestive symptoms because they  Believe remedies with natural ingredients
believe their symptoms are interrelated are slower-acting
– Would like to reduce the number of  Current usage of herbal OTCs is very low
remedies they have to take to avoid
 Cautious about the risks of taking too many
side-effects
OTCs
 Believe that remedies with natural, plant-
– Reluctant to add something new to their
based ingredients are likely to be milder on
repertoire
the body and have a better safety profile
 Highly engaged with their digestive health
– Motivated to find the right solution to
help them deal with their symptoms
Brand Benefit Ladder – Segment L16

 Feel in control of their digestive symptoms now they know they can address them
quickly and conveniently
 Feel confident that their digestive symptoms won’t disrupt their busy day
Emotional  Feel smart that they are addressing their multiple, interconnected symptoms at the
same time
benefits  Feel reassured that they are using a product which is effective, yet natural gentle
on their bodies

 It combines 9 medicinal herbs, each specially selected and uniquely combined to

Functional give fast relief (within 15-30 minutes) across multiple digestive symptoms at the
benefits same time
 It has a complete mode of action which is clinically proven to target the cause of
abdominal pain, cramps bloating and fullness
 It is natural, and therefore has fewer side effects
Product /
 9 medicinal herbs , blended during  Steigerwald experience
service a patented manufacturing process  Bayer endorsement
attributes  Clinical evidence  Drops format
 Excellent safety profile  Available in pharmacies
 Brand Benefit Edge
Segment L16 – Target Segment for Iberogast
“The power of nature to stop the digestive symptoms that stop you”

FOR young women with an average age of 33 who juggle many responsibilities - being a
mum, their jobs and their social lives. They get frustrated when their multiple digestive
symptoms disrupt their day.
IBEROGAST is the only natural remedy that provides effective relief from abdominal pain,
cramps, fullness and bloating, allowing them to give life their full attention again.
BECAUSE Iberogast drops is a clinically proven remedy made of 9 medicinal herbs, each
specially selected and uniquely combined to give fast relief from multiple digestive
symptoms.

Compelling to the target because:
• They want a natural remedy as their
frequent suffering means regular use
• They think that taking too many chemicals
can have an adverse impact on the body,
and could even cause long-term damage
• They want a single remedy that targets all
their symptoms, so they can reduce the
number of remedies they use from an
average of 3 OTCs to just 1
• The believe that multi-symptom remedies
are more effective than those that address
single-symptoms
• They want fast relief from their pain and
cramps
Different from competitors because:
• Iberogast is the only remedy which is
natural, fast and effective, and targets
multiple digestive symptoms at the same
time
• It is better for the body than traditional
OTCs, with no side effects
• It has a complete mode of action which is
clinically proven to target the cause of
abdominal pain, cramps bloating and
fullness
• It is more effective and convenient than
taking several OTCs
• It is natural but also provides fast relief
within 15-30 minutes
Deliverable by Iberogast because:
• Each of the 9 herbs targets specific
digestive symptoms – their combined
effect is fast, effective and proven by more
than 20 clinical trials
• The 9 medicinal herbs in Iberogast are
specially blended during a patented
manufacturing process
• It the most studied herbal OTC in the world
• Iberogast is delivered by drops in water, so
no need to digest tablets
• Steigerwald has many years’ experience of
phyto-herbal medicines, and with Bayer’s
marketing capability and global footprint
this is a powerful combination
The Foundation is being strengthened further
Iberogast 2015 – OMR Plan
2014 2015
Q3/Q4 Q1 Q2 Q3 Q4

OMR Pricing –
Conjoint OMR
Equity
Strength –
Brand
Equity
OMR Pricing – Tracking
OMR Insights – Conjoint
Qualitative

Module III: OMR Effective ROI – Econometrics:

GBT aligned to deprioritize for 2015. Rational is the lack of data from Russia to derive implementable
learnings. Germany built business on HCP model which will not be fully rolled out.
Iberogast is an Excellent Opportunity
for Your Business
Iberogast:
 …is the global GI SPARK brand
 …is ready to be rolled out
 …provides Proven in-market success
 …offers high margin for solid support
 …shows fast & strong success with DTC activation
 …is supported by strong clinical data
 …is supported with substantial expertise for your registration.
For more Information…

…please, also go to: http://iberogast.bhc.cnb/en

…or reach out to your Iberogast GCBU Partners:

Mike Seidel Anna Mueller

Global Brand Director Iberogast Global Brand Manager Iberogast

Tel: +41 58 272 7627 Tel.: +41 58 272 7629

Mobile: +41 79 235 9094 Mobile: +41 79 513 4050
Fax: +41 58 272 7599
E-mail: mike.seidel@bayer.com E-mail: anna.mueller1@bayer.com
Appendix