Bank of America Merrill Lynch HealthCare Conference Bayer HealthCare Dr. Jörg Reinhardt. September 14, 2011

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1 Bank of America Merrill Lynch HealthCare Conference Bayer HealthCare Dr. Jörg Reinhardt Chairman of the Board of Management of Bayer HealthCare AG and Chairman of the Bayer HealthCare Executive Committee September 14, 2011 Page 1 Bank of America Merrill Lynch HealthCare Conference Sept Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup 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 Bayer s public reports which are available on the Bayer website at The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Page 2 Bank of America Merrill Lynch HealthCare Conference Sept

2 Bayer HealthCare A Diversified Business Model Sales 2010, % y-o-y, ( ) Fx & portfolio adj. Consumer Health Animal Health 1,120 m +15% (+8%) 7% Consumer Care 3,371 m +9% (+4%) 20% 9% 16,913 m +6% (+2%) 64% Pharmaceuticals 10,908 m +4% (+1%) Medical Care 1,514 m +3% (-1%) Page 3 Bank of America Merrill Lynch HealthCare Conference Sept H 2011 Key Financials HealthCare [ million ] 1H H 2011 Change Fx & portfolio adj. Change Sales Pharma Consumer Health EBITDA Special items EBITDA before special items EBITDA margin before special items EBIT Special items EBIT before special items Gross cash flow Net cash flow 8,174 5,279 2,895 2,059 (86) 2, % 1,255 (218) 1,473 1,422 1,408 8,374 5,315 3,059 2,208 (88) 2, % 1,555 (88) 1,643 1,528 1, % 0.7% 5.7% 7.2% 7.0% 23.9% 11.5% 7.5% 0.6% 2.9% 0.7% 6.9% Page 4 Bank of America Merrill Lynch HealthCare Conference Sept

3 Concrete Challenges For Our Healthcare Business Pressure on sales / earnings Significant investment requirements Increasing generic competition Healthcare reforms Promising late-stage pharma pipeline Expected market introductions Emerging markets growth Consumer Health expansion Outlook 2011 projects below market growth in Pharma Resourcing organic growth Page 5 Bank of America Merrill Lynch HealthCare Conference Sept HealthCare Resourcing Organic Growth HealthCare savings contribution: Measures: 54% 54% 800m Streamlining administrative functions Related expected one-time charges: 26% 1,000m Staff reduction Site consolidation US East Coast (closing of production site in Emeryville) Bayer HealthCare Group Majority of savings to be reinvested into growth opportunities like pipeline and emerging markets Page 6 Bank of America Merrill Lynch HealthCare Conference Sept

4 HealthCare Building Growth Momentum Priority 1 Pharma-pipeline Opportunity > 3bn peak sales potential 1 from near-term product launches 2 Emerging Markets High-single to double-digit growth 3 Consumer Care Positioned for above-market growth 4 Animal Health Strong brands in growing markets 5 Radiology & Interventional² Synergy creation through integration 5 Expand network 6 M&A Focus: Bolt-on acquisitions 1 Subject to approval of Xarelto, VEGF Trap-Eye & Alpharadin as expected 2 New unit will combine Diagnostic Imaging (contrast media) and MEDRAD (injection devices) Page 7 Bank of America Merrill Lynch HealthCare Conference Sept Promising Late-Stage Pharma Pipeline Xarelto Riociguat Nexavar Regorafenib What it does inhibits blood clot formation lowers blood pressure in the lung inhibits enzymes important for tumor growth inhibits enzymes important for tumor growth Status 1st indication launched, filed; phase III phase III launched, additional indications in phase II/III phase III Alpharadin targeted treatment of bone metastases in prostate cancer Alsympca trial (phase III) stopped early on success VEGF Trap-Eye inhibits formation of new blood vessels 1st indication filed; phase III Page 8 Bank of America Merrill Lynch HealthCare Conference Sept

5 Xarelto: Novel Direct Factor Xa Inhibitor Large global program involving over 75,000 patients Met or exceeded primary efficacy endpoints in 8 phase III studies: RECORD 1-4, EINSTEIN DVT and EINSTEIN Extension; Rocket AF; MAGELLAN Marketing & regulatory status: Launched in >85 countries for VTE prevention following total knee / hip replacement surgery Filed for stroke prevention in patients with atrial fibrillation (SPAF) in major regions Positive FDA AdCom vote on approvability in SPAF Filed for DVT treatment / secondary VTE prevention in Europe Two additional phase III programs in chronic indications ongoing ATLAS TIMI 51 data expected end 2011/early 2012 EINSTEIN PE data expected end 2011/early 2012 Page 9 Bank of America Merrill Lynch HealthCare Conference Sept VTE: venous thromboembolism DVT: deep vein thrombosis VEGF Trap-Eye Fusion Protein To Combat Eye Diseases In-licensed from Regeneron Bayer has exclusive marketing rights ex-us Met primary efficacy endpoint in 4 phase III studies (VIEW I & II, Copernicus & Galileo) Submitted for marketing approval to European and Japanese health authorities for wet age related macular degeneration (AMD) 1 Filing for central retinal vein occlusion (CRVO) planned for 2012 Additional phase III studies in diabetic macular edema (DME) and myopic choroidal neovascularization (CNV) ongoing 1 US submission (February 2011) by Regeneron Page 10 Bank of America Merrill Lynch HealthCare Conference Sept

6 VEGF Trap-Eye Addressing a Range of Major Eye Diseases Indication Phase III Program Status Wet age-related macular degeneration (AMD) Filed in EU; J Central retinal vein occlusion (CRVO) Filing 2012e Diabetic macular edema (DME) Phase III ongoing Myopic choroidal neovascularization (CNV) Phase III ongoing Page 11 Bank of America Merrill Lynch HealthCare Conference Sept Alpharadin New Opportunities to Treat Bone Metastases Alpha-pharmaceutical (based on 223Radium, delivering highly energetic, short ranging radiation) - in-licensed from Algeta Radium as natural bone seeker targeting bone metastases ALSYMPCA (phase III) in patients with bone metastases in prostate cancer (HRPC) stopped early - Alpharadin demonstrated significant improvement in overall survival Filing targeted mid 2012 Fast track status granted by FDA Tumor cells Newly formed bone Bone metastases Radium-223 deposition Radium-223: highly localized tumor cell killing Page 12 Bank of America Merrill Lynch HealthCare Conference Sept HRPC: Hormone-refractory prostate cancer

7 2. Strong Business Momentum in Emerging Markets Sales in million; % y-o-y Fx adjusted 1H 2011 HealthCare sales Emerging economies USA -4% 25% 23% 31% Emerging Economies¹ +12% +18% +7% ~810 ~880 +7% +16% 32% 14% ~490 ~440 Western Europe +1% Others² +3% HealthCare 8,374m; +3% Emerging Asia³ Latin America Eastern Europe Africa & Middle East ¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, New Zealand, Africa and Middle East incl. Turkey, Eastern Europe Page 13 Bank of America Merrill Lynch HealthCare Conference Sept Bayer is One of The Leading International HealthCare Companies in China Sales in million; % y-o-y Fx adjusted HealthCare 1H m +31% y-o-y (Fx-adj.)* Strong growth Driven by Pharmaceuticals (+35% yoy) 1,000 sales representatives to be added through 2011 Top products growth in 1H 2011* Aspirin Cardio Adalat Avelox Glucobay Ultravist +64% +41% +35% +28% +20% Significant investment commitment Approx. 5,300 employees (2010) 100m over 5 years to set-up a global R&D center in China Beijing manufacturing site expansion (~ 45m through 2015) Partnership with Tsinghua University (joint drug discovery, student support) * People s Republic of China Page 14 Bank of America Merrill Lynch HealthCare Conference Sept

8 3. Consumer Care A Highly Attractive Market Sales Consumer Care in million; % y-o-y Fx adjusted 1,336 2,355 2,531 2,634 3,020 3,080 3,371 +9% 1,703 Highlights Global #2 Track record of performance Some of the world s most recognized brands Acquired Roche OTC, Citracal, Sagmel and Topsun Significant organic as well as inorganic growth opportunities H 2011 Page 15 Bank of America Merrill Lynch HealthCare Conference Sept Strong Consumer Care Brands Top OTC Products Sales in million; % y-o-y Fx adjusted Brand 2010 Sales 1H * +/-0% +14% % +12% % +9% % +10% % +8% % +3% * Only Aspirin CC sales, excluding Aspirin Cardio Page 16 Bank of America Merrill Lynch HealthCare Conference Sept

9 4. Animal Health Strong Brands in Growing Markets Sales in million; % y-o-y Fx adjusted Food Animal Companion Animal 41% 59% Highlights Global #4, key strength in attractive companion animal segment Track record of performance Key brand Advantage 10% CAGR over the last 4 years Attractive market trends Potential consolidation opportunities 2010 Animal Health 1,120m; +8% Page 17 Bank of America Merrill Lynch HealthCare Conference Sept Radiology & Interventional Combining Medrad and Diagnostic Imaging Sales Medrad in million; % y-o-y Fx adjusted +7% % 241 Highlights Medrad: Clear #1 Active in application devices for contrast media and mechanical thrombectomy Business strengthened around strategic core through adjacent acquisitions of Possis (thrombectomy) and Pathway (mechanical atherectomy) Diagnostic Imaging: Clear market leader in contrast media H 2011 Synergy creation through integration underway Page 18 Bank of America Merrill Lynch HealthCare Conference Sept

10 2011 Outlook Outlook based on Fx and portfolio adj. sales and EBITDA pre-special items HealthCare Low- to mid-single digit increase of sales and small increase of adj. EBITDA Pharma Low- to mid-single digit increase of sales and improvement of adj. EBITDA-margin Consumer Health Mid-single digit growth of sales and adj. EBITDA Page 19 Bank of America Merrill Lynch HealthCare Conference Sept Outlook depends on specific planning assumptions as detailed in the Annual/ Quarterly Report Bank of America Merrill Lynch HealthCare Conference Bayer HealthCare Dr. Jörg Reinhardt Chairman of the Board of Management of Bayer HealthCare AG and Chairman of the Bayer HealthCare Executive Committee September 14, 2011 Page 20 Bank of America Merrill Lynch HealthCare Conference Sept