April 25, 2013

First quarter of 2013:

Bayer: Life Sciences off to a good start in anniversary year

New pharmaceutical products spur growth at HealthCare, continuing strong development at CropScience, cost pressure at MaterialScience / Group sales up 2.1 percent to EUR 10,266 million / EBIT improves by 8.6 percent to EUR 1,771 million / EBITDA before special items increased by 0.4 percent to EUR 2,453 million / Net income rises 11.5 percent to EUR 1,160 million / Gratifying development in Emerging Markets / Group outlook for 2013 confirmed
Leverkusen, April 25, 2013 - For the Bayer Group, the first quarter of 2013 was
marked by the positive development of its Life Sciences businesses. "HealthCare
and CropScience got off to a good start in our anniversary year. Our new
pharmaceutical products especially grew at a dynamic pace," said Management
Board Chairman Dr. Marijn Dekkers on Thursday when the interim report for the
first quarter was published. By contrast, MaterialScience faced cost pressure.
"We continue to see attractive perspectives for 2013 overall. We confirm our
outlook for the Bayer Group," said Dekkers.

Sales of the Bayer Group climbed by 2.1 percent in the first quarter, to EUR
10,266 million (Q1 2012: EUR 10,054 million). Adjusted for currency and
portfolio effects (Fx & portfolio adj.), business expanded by 3.7 percent. The
gain in the Emerging Markets, at 6.8 percent (Fx adj.), was nearly three times
larger than in the industrialized countries (Fx adj. plus 2.5 percent). "We
expanded business especially strongly in the BRIC countries - in other words
Brazil, Russia, India and China," Dekkers explained.

EBIT grew by 8.6 percent to EUR 1,771 million (Q1 2012: EUR 1,631 million).
Special items, which in the first quarter of 2013 resulted entirely from
restructuring measures, amounted to minus EUR 45 million. Total special items
in the prior-year period were minus EUR 169 million. EBIT before special items
came in at EUR 1,816 million (plus 0.9 percent; Q1 2012: EUR 1,800 million).
EBITDA before special items was level with the prior-year period at EUR 2,453
million (plus 0.4 percent; Q1 2012: EUR 2,443 million). Net income increased by
11.5 percent to EUR 1,160 million (Q1 2012: EUR 1,040 million), while core
earnings per share advanced by 1.8 percent to EUR 1.70 (Q1 2012: EUR 1.67).

Gross cash flow in the first quarter of 2013 moved ahead by 12.9 percent to EUR
1,807 million (Q1 2012: EUR 1,600 million), mainly as a result of lower taxes.
Net cash flow advanced by 38.0 percent to EUR 327 million (Q1 2012: EUR 237
million). Net financial debt rose from EUR 7.0 billion on December 31, 2012 to
EUR 7.5 billion on March 31, 2013, mainly because of cash outflows for
operating activities.

HealthCare strengthened by new pharmaceutical products

Sales of the HealthCare subgroup increased by 2.3 percent (Fx & portfolio adj.
4.9 percent) in the first quarter of 2013, to EUR 4,443 million (Q1 2012: EUR
4,341 million). "This positive development was primarily driven by our new
pharmaceutical products," said Dekkers. The business with non-prescription
medicines (Consumer Care) also experienced a strong quarter. Sales in the
Emerging Markets, particularly those of Asia and Eastern Europe, maintained
their momentum, posting double-digit growth rates (Fx adj.).

Business in the Pharmaceuticals segment moved ahead by 1.9 percent (Fx &
portfolio adj. 5.0 percent) to EUR 2,564 million. "Our new products Xarelto,
Eylea and Stivarga made a particularly strong contribution," Dekkers
explained. Combined sales of these three products came in at EUR 244 million
(Q1 2012: EUR 42 million). The anticoagulant Xarelto continued to post very
gratifying sales gains, especially in Germany and France. Eylea, a medicine to
treat wet age-related macular degeneration, met with success in the early
launch phase in Japan and Australia. The cancer drug Stivarga contributed
significantly to sales growth following its successful launch in the United
States. Among the segment's best-selling products, the diabetes treatment
Glucobay (Fx adj. plus 20.3 percent), the hormone-releasing intrauterine
device Mirena (Fx adj. plus 4.9 percent) and the blood-clotting drug Kogenate
(Fx adj. plus 3.7 percent) developed positively. By contrast, sales of the YAZ/
Yasmin/ Yasminelle line of oral contraceptives (Fx adj. minus 12.5 percent)
were hampered above all by generic competition in Western Europe. Business with
the multiple sclerosis drug Betaferon/Betaseron was down by 6.9 percent (Fx
adj.) as expected due to lower volumes, particularly in the United States and
Brazil.

Sales in the Consumer Health segment improved by 3.0 percent (Fx & portfolio
adj. 4.8 percent) to EUR 1,879 million. "This positive development was mainly
attributable to sales growth in the Consumer Care Division, especially in the
Emerging Markets," Dekkers said. Consumer Care generated the highest growth
rates with the skincare product Bepanthen/Bepanthol (Fx adj. plus 13.9
percent) and the antifungal Canesten (Fx adj. plus 11.6 percent). The
analgesics Aleve/naproxen (Fx adj. plus 7.6 percent) and Aspirin (Fx adj.
plus 2.6 percent) saw growth particularly in Latin America. By contrast, sales
of the Medical Care Division fell slightly. Although business with the Contour
line of blood glucose meters moved forward by 2.6 percent (Fx adj.), sales in
the Diabetes Care business declined slightly overall for market-related
reasons, as did sales in the radiology and interventional business. Sales in
the Animal Health Division rose by 3.4 percent (Fx & portfolio adj.). The
launch of the Seresto flea and tick collar in the United States had a positive
effect here. Business with the Advantage line of flea, tick and worm control
products also showed a slight increase, particularly in the United States.

EBITDA before special items of HealthCare improved by 8.1 percent to EUR 1,277
million (Q1 2012: EUR 1,181 million). The higher earnings were mainly
attributable to the good business development at Pharmaceuticals and Consumer
Care. However, earnings development was held back by higher selling expenses.

CropScience particularly strong in North America

Sales of the agriculture business (CropScience) increased in the first quarter
of 2013 by 5.9 percent (Fx & portfolio adj. 7.2 percent) to EUR 2,764 million
(Q1 2012: EUR 2,610) despite a late start to the season in the northern
hemisphere. "Growth of CropScience was particularly strong in North America,
but the other regions also showed positive development," said Dekkers. "Our
business continued to be supported by the persistently high price levels for
agricultural commodities."

The Crop Protection business posted sales growth in all business units and
regions. The steepest percentage increase occurred in the business with seed
treatment products (SeedGrowth), where sales were up by 14.6 percent (Fx &
portfolio adj.). This resulted largely from higher product sales for
applications in corn and soybeans in the United States. The herbicides business
also registered double-digit growth at 13.3 percent (Fx & portfolio adj.). The
fungicides business expanded by 8.7 percent (Fx & portfolio adj.), while
insecticides sales advanced by 4.8 percent (Fx & portfolio adj.).

Sales of the Seeds business unit came in at the very strong level of the
prior-year quarter. The business unit achieved higher sales particularly in
Latin and North America, and also in Europe. By contrast, business in the
Asia/Pacific region receded. The rise in sales of soybean seed did not fully
offset the decline in business with cotton seed resulting from reduced cotton
acreages. Sales of vegetable seeds posted gratifying gains. By contrast, sales
of the Environmental Science business unit decreased by 10.2 percent (Fx &
portfolio adj.). This was primarily due to the long winter in the northern
hemisphere, which held back demand from both professional users and consumers.

EBITDA before special items of CropScience grew by 9.9 percent to EUR 1,081
million (Q1 2012: EUR 984 million), mainly as a result of price increases and
higher volumes.

MaterialScience hampered by raw material costs

The MaterialScience subgroup posted sales of EUR 2,775 million in the first
quarter of 2013 (Q1 2012: EUR 2,787 million), matching the prior-year period.
"An overall increase in selling prices for our high-tech materials compensated
for a drop in volumes in Europe and North America," Dekkers explained.

Business with foam raw materials (Polyurethanes) improved by 4.4 percent (Fx &
portfolio adj.), driven by higher selling prices in all product groups and
regions. Volumes declined overall despite increases in Asia/Pacific and Latin
America/Africa/Middle East. This was mainly due to lower sales in Europe and a
maintenance shutdown in North America. Sales in the high-tech plastics
(Polycarbonates) business unit declined by 5.8 percent (Fx & portfolio adj.)
due to lower volumes in nearly all regions. Polycarbonates achieved slightly
higher price levels in North America and Europe. In the Coatings, Adhesives,
Specialties business unit, sales were down by 3.1 percent (Fx & portfolio adj.)
due to lower volumes in all product groups. Selling prices as a whole were flat
with the previous year.

EBITDA before special items of MaterialScience shrank by 26.9 percent to EUR
204 million (Q1 2012: EUR 279 million). This decline was largely due to a sharp
rise in raw material prices. Earnings were also hampered by a drop in volumes
and high costs for the maintenance shutdown in North America. Positive factors
were price increases and savings from efficiency improvements.

Group sales of approximately EUR 41 billion targeted for 2013

"We confirm our forecast for 2013, which we published at the end of February,"
said Dekkers. Bayer continues to expect Group sales for the full year 2013 to
increase by 4 to 5 percent (Fx & portfolio adj.) to approximately EUR 41
billion, based on unchanged currency assumptions. As before, Bayer plans to
increase EBITDA before special items by a mid-single-digit percentage and core
earnings per share by a high-single-digit percentage.

HealthCare's ongoing priority in 2013 is to successfully commercialize the new
pharmaceutical products. The subgroup continues to expect sales to advance by a
mid-single-digit percentage (Fx & portfolio adj.) to approximately EUR 19
billion, with an increase in EBITDA before special items. Earnings growth is
likely to be restrained by negative currency effects and increasing expenses
during the year for research and development and launches of new products.
HealthCare aims to slightly improve the EBITDA margin before special items. In
the Pharmaceuticals segment, Bayer continues to expect sales to move ahead in
2013 by a mid-single-digit percentage (Fx & portfolio adj.) to about EUR 11
billion. The segment plans to increase EBITDA before special items and slightly
improve the EBITDA margin before special items. Bayer continues to predict that
sales of the Consumer Health segment will grow by a mid-single-digit percentage
(Fx & portfolio adj.) to around EUR 8 billion. The company expects EBITDA
before special items to increase and the EBITDA margin before special items to
be level with the prior year.

CropScience continues to expect that business growth will outpace the market,
with sales advancing by a high-single-digit percentage (Fx & portfolio adj.)
toward EUR 9 billion. The subgroup also plans to raise EBITDA before special
items by a high-single-digit percentage.

For 2013 MaterialScience is planning a slight increase in sales (Fx & portfolio
adj.) to about EUR 12 billion. In light of the business development in the
first quarter, the subgroup is now aiming for EBITDA before special items to
approximately match the prior-year figure (previously: further improve). In the
second quarter of 2013, Material-Science expects sales to exceed the first
quarter and EBITDA before special items to come in significantly higher.

In the reconciliation - in which Bayer reports the service companies Business
Services, Technology Services and Currenta, as well as the holding company -
the company anticipates EBITDA before special items for 2013 to be in the
region of minus EUR 200 million (2012: minus EUR 127 million). In the first
quarter, EBITDA before special items declined to minus EUR 109 million (Q1
2012: minus EUR 1 million). This was mainly due to expenses of EUR 36 million
for stock-based compensation (LTI), to costs associated with Bayer's 150th
anniversary celebrations, and to other effects.

Note:
The tables below contain the key data for the Bayer Group and its subgroups for
the first quarter 2013.

The complete financial report as of March 31, 2013 is available for online
viewing and download at www.investor.bayer.com.

Supplementary features at www.investor.bayer.com:
- presentation charts for the investor conference call at 12:00 noon CEST
- live webcast of the investor conference call from approximately 2:00 p.m. CEST
- recording of the investor conference call from approximately 6:00 p.m. CEST.


Forward-looking statements

This release 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 www.bayer.com. The company assumes no liability whatsoever to
update these forward-looking statements or to conform them to future events or
developments.