Profile and Organization

Names | Figures | 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 makes an important contribution to human and animal health with its innovative products and by researching new therapeutic approaches. The subgroup has four operating divisions: Bayer Schering Pharma* (prescription medicines), Consumer Care (over-the-counter medicines and nutritional supplements), Medical Care (blood glucose monitoring systems and contrast injection systems), Animal Health (veterinary medicines and grooming products).
Bayer CropScience is a world leader in the areas of crop protection, pest control, seeds and plant biotechnology. As a partner in the production of high-quality food, feed and fiber, the company offers comprehensive solutions for modern, sustainable agriculture and non-agricultural applications.
Bayer MaterialScience is one of the world’s leading manufacturers of polymers and high-quality plastics. Apart from its polycarbonates and polyurethanes, this company’s offering also includes innovative developments in the fields of coatings, adhesives, insulating materials and sealants. Principal customers are the automotive and construction industries, the electrical/electronics sector and manufacturers of sports and leisure articles, packaging and medical equipment.

Central service functions are combined into three service companies:

Bayer Business Services is the Bayer Group’s international competence center for it-based services. Its product offering focuses on integrated services in the core areas of it infrastructure and applications, procurement and logistics, human resources and executive personnel services, and finance and accounting.the Bayer Group's international competence center for IT-based services.
Bayer Technology Services is the global technological backbone for the Bayer Group and a major innovation driver. Its services comprise the development, planning, construction and optimization of processes and plant. This service company offers fully integrated solutions right through the life cycle of production facilities.
Currenta offers services for the chemical industry including utility supply, waste management, infrastructure, safety, security, analytics and vocational training. This service company – a joint venture between Bayer and lanxess – operates the chempark sites in Leverkusen, Dormagen and Krefeld-Uerdingen, Germany.

Corporate Governance

Dual governance system with the following governance bodies:

Board of Management:	4 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 316 companies. Global headquarters are in Leverkusen, Germany.

Workforce

On December 31, 2008, the Bayer Group had 108,600 employees worldwide (2007: 106,200). North America accounted for 17,000 of these employees, while 20,800 were based in Asia-Pacific, 15,300 in Latin America/Africa/Middle East and 55,500 in Europe. In Germany we had 37,400 employees, who made up 34.4 percent of the Group workforce.

108,600 employees worldwide (as of December 31, 2008), including:

55,500 in Europe
17,000 in North America
20,800 in Asia/Pacific
15,300 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 1.40

Bayer Group Key Data

Bayer Group	2007 € million	2008 € million	Change %
Net sales	32,385	32,918	+1.6
EBITDA ¹	5,866	6,266	+6.8
EBITDA before special items	6,777	6,931	+2.3
EBIT ²	3,154	3,544	+12.4
EBIT before special items	4,287	4,342	+1.3
Income before income taxes	2,234	2,356	+5.5
Net income	4,711	1,719	-63.5
Earnings per share (in €) ³	5.84	2.22	-62.0
Gross cash flow ⁴	4,784	5,295	+10.7
Net cash flow ⁵	4,281	3,608	-15.7
Capital expenditures	1,891	1,982	+4.8
Research and development expenses	2,578	2,653	+2.9
Dividend per Bayer AG share (€)	1.35	1.40	+3.7

2007 figures restated
1-5 for definition see footnotes to Bayer Group Key Data table

Sales by segment in percent, 2008 (2007 in parentheses)

	Reconciliation 4.2% (4.1%)

	HealthCare 46.8% (45.7%) Pharmaceuticals 32.5% (31.7%) Consumer Health 14.3% (14.0%)

	CropScience 19.4% (18.0%) Crop Protection 16.2% (14.8%) Environmental Science/BioScience 3.2% (3.2%)

	MaterialScience 29.6% (32.2%) Systems 21.7% (22.8%) Materials 7.9% (9.4%)