September 18, 2014

Bayer plans to focus entirely on Life Science businesses

Concentration on HealthCare and CropScience / MaterialScience to be floated on the stock market by 2016 at the latest / Planned separation to benefit both Bayer and MaterialScience / Employment levels are expected to remain stable over the next few years
Leverkusen, September 18, 2014 - Bayer intends in the future to focus entirely
on the Life Science businesses - HealthCare and CropScience - and float
MaterialScience on the stock market as a separate company. In this way Bayer is
positioning itself as a world-leading company in the field of human, animal and
plant health. The Supervisory Board unanimously approved the Board of
Management's plans today, Thursday. "Our intention is to create two top global
corporations: Bayer as a world-class innovation company in the Life Science
businesses, and MaterialScience as a leading player in polymers," Bayer CEO Dr.
Marijn Dekkers announced. He said both companies have excellent prospects for
success in their respective industries. Employment levels are expected to
remain stable over the next few years, both globally and in Germany.

MaterialScience to gain direct access to the capital market

In recent years, Bayer's center of gravity has greatly shifted toward its Life
Science activities with the successful launch of novel pharmaceutical products,
the pending acquisition of the over-the-counter products business of Merck &
Co., Inc., United States, and the very successful development of the
CropScience business. The aim is to continue the positive development of these
activities in the future through further investment in growth. Following its
regular evaluation of the business portfolio, the Board of Management has
therefore decided to focus the company on these areas. The Life Sciences
currently already account for about 70 percent of Bayer's sales and 88 percent
of EBITDA before special items.

It is planned to float the MaterialScience business on the stock market as a
separate company within the next 12 to 18 months. A major reason for this move
is to give MaterialScience direct access to capital for its future development.
This access can no longer be adequately ensured within the Bayer Group due to
the substantial investment needs of the Life Science businesses for both
organic and external growth. Also, as a separate company, MaterialScience can
align its organizational and process structures and corporate culture entirely
toward its own industrial environment and business model.

Bayer to retain a balanced portfolio

The companies of the future Bayer Group had pro forma sales of approx. EUR 29
billion in 2013. They will employ nearly 99,000 people, including about 29,500
in Germany. Corporate headquarters will remain in Leverkusen.

"Bayer will continue as an enterprise with an attractive and balanced portfolio
and a primary focus on organic growth," Dekkers explained. To this end, the
company intends to raise its research and development spending, selectively
strengthen early research at the interface between HealthCare and CropScience,
and continue driving the successful commercialization of the recently launched
pharmaceutical products. Bayer expects these products - the anticoagulant
Xarelto™, the eye medicine Eylea™, the cancer drugs Stivarga™ and Xofigo™, and
the pulmonary hypertension drug Adempas™ - to have a combined peak annual sales
potential of at least EUR 7.5 billion.

Separate MaterialScience business more flexible in the face of global
competition

"We firmly believe that MaterialScience will use its separate status to deploy
its existing strength even more rapidly, effectively and flexibly in the global
competitive arena," Dekkers commented. A strategy and corporate culture aligned
to technological and cost leadership, coupled with the ability to make its own
investment and portfolio decisions, would give MaterialScience the best
development prospects in a highly competitive market. That, said Dekkers,
includes direct capital market access so that it would not have to compete with
the Life Science businesses for investment funding in the future.

"MaterialScience is a very well positioned business that today operates very
modern, competitive, large-scale facilities. We have steadily invested in these
facilities, even in difficult economic times," Dekkers pointed out, citing the
world-scale production facilities in Shanghai, China, and the new TDI plant in
Dormagen, Germany, which is to be officially inaugurated in December. Between
2009 and 2013 alone, Bayer invested a total of over EUR 3.8 billion in
property, plant and equipment and research and development for the
MaterialScience business.

Following the intended flotation, MaterialScience will be Europe's
fourth-largest chemical company; it had global sales in 2013 of more than EUR
11 billion (pro forma figure). The new company is planned to have a global
workforce of roughly 16,800, including about 6,500 in Germany. It will have a
new name and a separate identity and be headquartered in Leverkusen.

Bayer: Science For A Better Life

Bayer is a global enterprise with core competencies in the fields of health
care, agriculture and high-tech polymer materials. As an innovation company, it
sets trends in research-intensive areas. Bayer's products and services are
designed to benefit people and improve their quality of life. At the same time,
the Group aims to create value through innovation, growth and high earning
power. Bayer is committed to the principles of sustainable development and to
its social and ethical responsibilities as a corporate citizen. In fiscal 2013,
the Group employed 113,200 people and had sales of EUR 40.2 billion. Capital
expenditures amounted to EUR 2.2 billion, R&D expenses to EUR 3.2 billion. For
more information, go to www.bayer.com.


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.