April 28, 2014

First quarter of 2014

Bayer: Very successful start to 2014

Encouraging business development in all subgroups / Strong growth for recently launched pharmaceutical products / Group sales EUR 10,555 million (plus 2.8 percent, Fx & portfolio adj. plus 8.4 percent) / EBIT moves ahead by 18.4 percent to EUR 2,096 million / EBITDA before special items rises by 11.6 percent to EUR 2,738 million - despite negative currency effects of 8 percent / Net income advances by 22.7 percent to EUR 1,423 million / Core earnings per share increase by 14.7 percent to EUR 1.95 / Forecast for 2014 confirmed
Leverkusen, April 28, 2014 - The Bayer Group started the year 2014 with
encouraging growth in sales and earnings. "Our Life Science businesses
continued their dynamic development and achieved slight earnings increases
despite significant negative currency effects," Bayer CEO Dr. Marijn Dekkers
said on Monday when the interim report was published. HealthCare experienced
strong growth thanks to the gratifying development in sales of the recently
launched pharmaceutical products. CropScience benefited from an early start to
the season in Europe. MaterialScience, in particular, raised earnings
substantially. "We are confident about our business development for the rest of
the year and confirm our guidance for 2014," said Dekkers.

Sales of the Bayer Group advanced by 2.8 percent in the first quarter of 2014
to EUR 10,555 million (Q1 2013: EUR 10,266 million). Adjusted for currency and
portfolio effects (Fx & portfolio adj.), business expanded by 8.4 percent. EBIT
rose by 18.4 percent to EUR 2,096 million (Q1 2013: EUR 1,771 million) after
net special items of plus EUR 7 million (Q1 2013: minus EUR 45 million). EBIT
before special items increased by 15.0 percent to EUR 2,089 million (Q1 2013:
EUR 1,816 million). In spite of negative currency effects of some EUR 200
million or roughly 8 percent, EBITDA before special items improved by 11.6
percent to EUR 2,738 million (Q1 2013: EUR 2,453 million). Net income climbed
by 22.7 percent to EUR 1,423 million (Q1 2013: EUR 1,160 million) and core
earnings per share by 14.7 percent to EUR 1.95 (Q1 2013: EUR 1.70).

Gross cash flow in the first quarter of 2014 rose by 13.3 percent to EUR 2,048
million (Q1 2013: EUR 1,807 million) due to the improvement in EBITDA. Net cash
flow, however, declined to EUR 163 million (Q1 2013: EUR 327 million) because
more cash was tied up in working capital. Net financial debt rose from EUR 6.7
billion on December 31, 2013, to EUR 9.1 billion on March 31, 2014. This
increase was driven by the acquisition of Algeta ASA, Norway.

HealthCare: recently launched pharmaceutical products post sales of some EUR
600 million

Sales of the HealthCare subgroup rose by 2.9 percent (Fx & portfolio adj. 8.9
percent) in the first quarter to EUR 4,572 million (Q1 2013: EUR 4,443
million). "This growth was driven by the pharmaceutical products we have
launched recently," said Dekkers. Sales showed above-average development in the
Emerging Markets.

The Pharmaceuticals business recorded strong growth compared to a weaker
prior-year quarter, with sales rising by 14.9 percent (Fx & portfolio adj.) to
EUR 2,782 million. This excellent performance was driven by the recently
launched medicines Xarelto, Eylea, Stivarga, Xofigo and Adempas, which
registered combined sales of EUR 598 million (Q1 2013: EUR 244 million) led by
the anticoagulant Xarelto, which is Bayer's best-selling pharmaceutical
product. The eye medicine Eylea posted strong gains, and business with the
cancer drugs Stivarga and Xofigo developed well. The pulmonary hypertension
treatment Adempas, launched in the United States in the fourth quarter of
2013, also contributed to the growth in sales.

Among the established best-selling products, the cancer drug Nexavar recorded
sales gains in all regions, with currency-adjusted (Fx adj.) growth of 13.6
percent. Sales of Aspirin Cardio for preventing heart attacks rose by 19.2
percent (Fx adj.), largely thanks to increased demand in China. The decline in
sales of the blood-clotting medicine Kogenate (Fx adj. minus 5.7 percent) was
partly explained by the high sales level of the prior-year quarter. Sales of
the multiple sclerosis drug Betaferon/Betaseron receded by 21.5 percent (Fx
adj.), mainly due to increased competition in the United States. Business with
the YAZ/Yasmin/Yasminelle line of oral contraceptives was hampered chiefly
by generic competition, with sales of these products down by 2.6 percent (Fx
adj.).

Sales of the Consumer Health segment in the first quarter of 2014, at EUR 1,790
million, were flat with the prior-year period on a currency- and
portfolio-adjusted basis. In Consumer Care, the skincare product Bepanthen/
Bepanthol and the dietary supplement Supradyn in particular registered growth
(Fx adj. 21.9 percent and 15.0 percent, respectively). In the Medical Care
Division, the U.S. Diabetes Care business continued to be held back by price
declines. Sales of the Contour line of blood glucose meters receded by 11.5
percent (Fx adj.). Sales of contrast agents and medical equipment in the
Radiology & Interventional business were slightly down on a currency- and
portfolio-adjusted basis. On the other hand, business with animal health
products developed favorably, with growth particularly for the Advantage
family of flea, tick and worm control products (Fx adj. plus 10.8 percent).

Despite significant negative currency effects of some EUR 130 million or
approximately 11 percent, EBITDA before special items of HealthCare rose by 1.9
percent to EUR 1,301 million (Q1 2013: EUR 1,277 million). The improvement was
due to the very good business development at Pharmaceuticals, while earnings at
Consumer Health declined slightly. Earnings were also held back by higher
selling expenses and research and development costs.

Strong start to the season at CropScience

Sales of the agriculture business (CropScience) increased in the first quarter
by 4.9 percent (Fx & portfolio adj. plus 11.8 percent) to EUR 2,900 million (Q1
2013: EUR 2,764 million). Both Crop Protection/Seeds and Environmental Science
contributed to this encouraging growth. "Our business benefited mainly from an
early start to the season in Europe and strong sales in Latin America," Dekkers
said. The subgroup grew sales by 17.0 percent (Fx adj.) in Europe and by 21.3
percent (Fx adj.) in Latin America/Africa/ Middle East. Sales advanced by 8.2
percent (Fx adj.) in Asia/Pacific and 4.3 percent (Fx adj.) in North America.

The Crop Protection business saw positive development in all business units,
with new products (launched since 2006) playing a key role. The Fungicides (Fx
& portfolio adj. plus 16.6 percent), SeedGrowth (Fx & portfolio adj. plus 19.1
percent) and Insecticides (Fx & portfolio adj. plus 12.6 percent) units all
posted double-digit growth rates. Herbicides (Fx & portfolio adj. plus 7.7
percent) mainly benefited from the good development of products for use in
cereals. Business in the Seeds unit also expanded markedly (Fx & portfolio adj.
plus 11.9 percent). Environmental Science registered a positive performance
both by products for professional users and by the consumer business, raising
sales by 7.9 percent (Fx & portfolio adj.).

Despite negative currency effects of about EUR 70 million or approximately 6
percent, EBITDA before special items advanced by 1.6 percent to EUR 1,098
million (Q1 2013: EUR 1,081 million). This earnings growth was mainly
attributable to significantly increased volumes and higher selling prices.
However, earnings were hampered by increases in both selling expenses and
research and development expenses.

Earnings at MaterialScience substantially improved

Sales of the high-tech polymer materials business (MaterialScience) increased
in the first quarter by 1.0 percent (Fx & portfolio adj. 4.8 percent) to EUR
2,803 million (Q1 2013: EUR 2,775 million). "This growth was the result of
significantly higher volumes in all business units and regions except Latin
America/Africa/Middle East," Dekkers explained. Selling prices were below the
level of the prior-year period.

Sales of foam raw materials (Polyurethanes) improved by 6.5 percent (Fx &
portfolio adj.). Higher volumes in nearly all regions, especially North America
and Asia/Pacific, contributed to this increase. Sales of high-tech plastics
(Polycarbonates) rose by 2.3 percent (Fx & portfolio adj.) as a result of
higher volumes in nearly all regions. Business with the raw materials marketed
by the Coatings, Adhesives, Specialties business unit expanded by 6.6 percent
(Fx & portfolio adj.) due to higher volumes in all regions.

EBITDA before special items of MaterialScience improved by a substantial 79.4
percent against a weak prior-year quarter, to EUR 366 million (Q1 2013: EUR 204
million). This increase was largely due to lower raw material prices. Earnings
were also boosted by higher volumes and efficiency improvement measures. Lower
selling prices, however, had a negative effect.

Adjusted sales growth of about 5 percent planned for 2014

After the very encouraging first quarter, Bayer confirms the 2014 guidance it
issued at the end of February based on average exchange rates for the fourth
quarter of 2013. The company experienced negative currency effects in the first
quarter of 2014 compared to these assumptions, but so far these have been more
than offset by the improvement in its operational performance and by seasonal
effects. Bayer plans to grow sales for the full year by about 5 percent on a
currency- and portfolio-adjusted basis. Allowing for expected negative currency
effects of about 2 percent compared to the previous year, Group sales would be
approximately EUR 41 billion to EUR 42 billion. It is planned to raise EBITDA
before special items by a low- to mid-single-digit percentage, allowing for
expected negative currency effects of about EUR 450 million or roughly 5
percent. Bayer aims to increase core earnings per share by a mid-single-digit
percentage, allowing for expected negative currency effects of around 6
percent. Bayer expects net financial debt at year end to be less than EUR 9.0
billion.

HealthCare expects sales to advance by a mid-single-digit percentage in 2014 on
a currency- and portfolio-adjusted basis. Allowing for expected negative
currency effects of about 2 percent, sales would be approximately EUR 19.5
billion to EUR 20 billion. The subgroup predicts EBITDA before special items to
slightly exceed the prior-year level, allowing for negative currency effects of
roughly EUR 250 million.

In the Pharmaceuticals segment, sales are expected to move ahead by a
high-single-digit percentage on a currency- and portfolio-adjusted basis.
Negative currency effects of around 2 percent are predicted compared to 2013.
Pharmaceuticals plans to raise sales of its recently launched products to EUR
2.8 billion. Additional marketing and R&D expenditures totaling EUR 0.5 billion
are anticipated in this segment in 2014. Against this background, the
Pharmaceuticals segment predicts a low- to mid-single-digit percentage increase
in EBITDA before special items, allowing for negative currency effects of about
EUR 150 million. The EBITDA margin before special items of Pharmaceuticals is
expected to be level with the previous year.

Sales in the Consumer Health segment are planned to rise by a low- to
mid-single-digit percentage (Fx & portfolio adj.). Negative currency effects of
around 3 percent compared with 2013 are expected. EBITDA before special items
is anticipated to come in slightly below the level of the prior year, allowing
for negative currency effects of approximately EUR 100 million.

CropScience continues to predict favorable market conditions for 2014, although
the environment will not be quite as positive as in 2013. The subgroup expects
to grow faster than the market and raise sales by a mid- to high-single-digit
percentage on a currency- and portfolio-adjusted basis. Negative currency
effects of about 3 percent are anticipated compared to 2013. CropScience
expects to increase EBITDA before special items by a low-single-digit
percentage, allowing for negative currency effects of approximately EUR 150
million.

MaterialScience expects to increase sales in 2014 by a mid-single-digit
percentage on a currency- and portfolio-adjusted basis and predicts negative
currency effects of about 2 percent compared to 2013. The subgroup anticipates
an increase in EBITDA before special items, allowing for negative currency
effects of roughly EUR 50 million. In the second quarter of 2014,
MaterialScience expects to raise sales compared to the first quarter. EBITDA
before special items is likely to show a slight decrease due to scheduled
maintenance shutdowns.

Note:

The tables below contain the key data for the Bayer Group and its subgroups for
the first quarter 2014.

The full report for the first quarter 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.