Profile and Organization

Names Figure Facts

Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. Our products and services are designed to benefit people and improve their quality of life. At the same time we want to create value through innovation, growth and high earning power.

Organization

Bayer AG defines common values, goals and strategies for the entire Group. The three subgroups and three service companies operate independently, led by the management holding company. The Corporate Center supports the Group Management Board in its task of strategic leadership.

Business operations are the responsibility of the subgroups:

Bayer HealthCare AG researches, develops, manufactures and markets innovative products for disease prevention, diagnosis and treatment.
Bayer CropScience AG is a global leader in crop protection and non-agricultural pest control.
Bayer MaterialScience AG is a renowned supplier of high-performance materials and innovative system solutions used in a wide range of products for everyday life.

Central service functions are combined into three service companies:

Bayer Business Services GmbH is the Bayer Group's international competence center for IT-based services.
Bayer Technology Services GmbH, the technological backbone of the Bayer Group, is engaged in process development and in process and plant engineering, construction and optimization.
Currenta GmbH & Co. OHG is a joint venture of Bayer AG and Lanxess AG and operator of the three Chempark sites at Leverkusen, Dormagen and Krefeld-Uerdingen.

Corporate Governance

Dual governance system with the following governance bodies:

Board of Management:	four members, Chairman: Werner Wenning
Supervisory Board:	20 members, Chairman: Dr. Manfred Schneider

Products

The Bayer Group markets some 5,000 products. Best-sellers include:

in the health care field: Yasmin®/YAZ®/Yasminelle®, Betaferon®/Betaseron®, Kogenate®, Adalat®, Avalox®/Avelox®
in the nutrition field: Confidor®/Gaucho®/Admire®/Merit®, Flint®/Stratego®/Sphere®
in the field of high-tech materials: Makrolon®, Baydur®, Bayflex® Footwear, Desmodur®/Desmophen®

Locations

Bayer is represented around the world by 350 companies. Global headquarters are in Leverkusen, Germany.

Workforce

On December 31, 2007, the Bayer Group had 106,200 employees worldwide (2006: 106,000). North America accounted for 16,800 of these employees, while 18,900 were based in Asia-Pacific, 14,300 in Latin America/Africa/Middle East and 56,200 in Europe. In Germany we had 39,100 employees, who made up 36.8 percent of the Group workforce.

106,200 employees worldwide (as of December 31, 2007), including:

56.200 in Europe

16.800 in North America

18.900 in Asia/Pacific

14.300 in Latin America/Africa/Middle East

Bayer Stock

included in nearly all the major share indices
traded on all German stock exchanges
dividend per share: EUR 1.35

Bayer Group Key Data

Bayer Group	Change %
Net sales	28,956	32;385	11.8
EBITDA ¹	4,675	5,866	25.5
EBITDA before special items	5,584	6,777	21.4
EBIT ²	2,762	3,154	14.2
EBIT before special items	3,479	4,287	23.2
Income before income taxes	1,980	2,234	12,.8
Net income	1,683	4,711	•
Earnings per share (in €) ³	2.22	5.84	•
Gross cash flow ⁴	3,913	4,784	22.3
Net cash flow ⁵	3,928	4,281	9.0
Capital expenditures	1,739	1,891	8.7
Research and development expenses	2,297	2,578	12.2
Dividend per Bayer AG share (€)	1.00	1.35	35.0

2006 figures restated
1-5 for definition see footnotes to Bayer Group Key Data table

Sales by Segment in Percent, 2007 (2006 in parentheses)

Reconciliation 4 (5)

HealthCare 46 (40)

Consumer Health 14 (14)

Pharmaceuticals 32 (26)

CropScience 18 (20)

Environmental Science/BioScience 3 (4)

Crop Protection 15 (16)

MaterialScience 32 (35)

Systems 23 (25)

Materials 9 (10)