For direct access  
to a chapter, simply 
click on its name.
Annual Report
2013
 Augmented Version	
» Bayer: Science For A Better Life	
» Key Data	
» Chairman’s Letter
	
» FOR A BETTER LIFE 		
» Fighting cancer 
10 	
» Safeguarding nutrition 
16 	
» Conserving resources 
22
	
» TO OUR STOCKHOLDERS	
» Executive Council
30	
» Report of the Supervisory Board
32	
» Investor Information
37
01	 » COMBINED MANAGEMENT REPORT OF THE BAYER GROUP AND BAYER AG
45	
Report on Economic Position
151
		» Overview of Sales, Earnings and Financial Position 
152	
» Business Development by Subgroup, Segment and Region  
156	
» Earnings; Asset and Financial Position of the Bayer Group 
170	
» Earnings; Asset and Financial Position of Bayer AG 
181
02	» CONSOLIDATED FINANCIAL STATEMENTS OF THE BAYER GROUP
227	
» RESPONSIBILITY STATEMENT 
330	
» INDEPENDENT AUDITORS’ REPORT 
331	
» INDEPENDENT ASSURANCE REPORT
333
03		» FURTHER INFORMATION
336	
» Financial Calendar    » Masthead, Disclaimer
ABOUT THE  
INTEGRATED REPORT
This year’s Annual Report 
­combines our financial and 
our sustainability reporting 
for the first time. On page  
28-29 you can find further 
­information about this report 
and learn how to use it.
» COVER PICTURE

Cover picture 
Bayer and tumor centers worldwide are searching for new treatment options 
for cancer patients. Our cover picture shows Professor Mark Schrader, Medical 
Director of the Department of Urology at Ulm University Hospital, and assistant 
physician Kathi Adamczyk examining a CT scan for diagnosing bone metastases  
in a patient with prostate cancer. 
 
	 Read more about what Bayer’s researchers and the doctors at Ulm University 
Hospital are doing to improve the lives of people with cancer in the magazine 
section of this Annual Report beginning on page 10.
Bayer is a global enterprise with core competencies  
in the fields of health care, agriculture and high-tech 
polymer materials.
As an innovation company, we set trends in research- 
intensive areas. Our products and services are designed 
to benefit people and improve their quality of life. At the 
same time we aim to create value through innovation, 
growth and high earning power.
We are committed to the principles of sustainable 
­development and to our social and ethical responsi- 
bilities as a corporate citizen.
» TABLE OF CONTENTS

Key Data
 
[Table 1.1]
 
2012
2013
Change
 
€ million
€ million
%
Bayer Group
Sales
39,741
40,157
+ 1.0
EBIT 1 
3,928
4,934
+ 25.6
EBIT before special items 2
5,639
5,773
+ 2.4
EBITDA3
6,916
7,830
+ 13.2
EBITDA before special items 2
8,280
8,401
+ 1.5
EBITDA margin before special items 4
20.8%
20.9%
 
Income before income taxes
3,176
4,207
+ 32.5
Net income
2,403
3,189
+ 32.7
Earnings per share (€) 5
2.91
3.86
+ 32.6
Core earnings per share (€) 6
5.30
5.61
+ 5.8
Gross cash flow 7
4,556
5,832
+ 28.0
Net cash flow 8
4,530
5,171
+ 14.2
Net financial debt
7,022
6,731
– 4.1
Capital expenditures as per segment table
2,012
2,155
+ 7.1
Research and development expenses
3,013
3,190
+ 5.9
Dividend per Bayer AG share (€)
1.90
2.10
+ 10.5
HealthCare 
Sales
18,604
18,924
+ 1.7
EBIT
2,205
3,260
+ 47.8
EBIT before special items 2
3,787
3,973
+ 4.9
EBITDA3
3,866
4,858
+ 25.7
EBITDA before special items 2
5,119
5,334
+ 4.2
EBITDA margin before special items 4
27.5%
28.2%
 
Gross cash flow 7
2,659
3,573
+ 34.4
Net cash flow 8
3,546
2,980
– 16.0
CropScience
Sales
8,383
8,819
+ 5.2
EBIT
1,556
1,729
+ 11.1
EBIT before special items 2
1,543
1,801
+ 16.7
EBITDA3
2,050
2,184
+ 6.5
EBITDA before special items 2
2,025
2,248
+ 11.0
EBITDA margin before special items 4
24.2%
25.5%
  
Gross cash flow 7
1,332
1,590
+ 19.4
Net cash flow 8
899
682
– 24.1
MaterialScience
Sales
11,491
11,238
– 2.2
EBIT
581
435
– 25.1
EBIT before special items 2
613
429
– 30.0
EBITDA3
1,236
1,101
– 10.9
EBITDA before special items 2
1,263
1,072
– 15.1
EBITDA margin before special items 4
11.0%
9.5%
 
Gross cash flow 7
952
887
– 6.8
Net cash flow 8
735
977
+ 32.9
2012 figures restated 
1	 EBIT = earnings before financial result and taxes
2	 EBIT before special items and EBITDA before special items are not defined in 
the International Financial Reporting Standards and should therefore be re-
garded only as supplementary information. EBITDA before special items is a 
meaningful indicator of operating performance since it is not affected by 
depreciation, amortization, impairments or special items. By reporting this 
indicator, the company aims to give readers a clear picture of the results of 
operations and ensure comparability of data over time. See also Combined 
Management Report, Chapter 16.2 “Calculation of EBIT(DA) Before Special 
Items.”
3	 EBITDA = EBIT plus amortization and impairment losses on intangible assets 
and depreciation and impairment losses on property, plant and equipment, 
minus impairment loss reversals. See also Combined Management Report, 
Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”
4	 The EBIT(DA) margin before special items is calculated by dividing EBIT(DA) 
before special items by sales. 
5	 Earnings per share as defined in IAS 33 = net income divided by the average 
number of shares. For details see Note [16] to the consolidated financial 
statements.
6	 Core earnings per share are not defined in the International Financial Report-
ing Standards. By reporting this indicator, the company aims to give readers 
a clear picture of the results of operations and ensure comparability of data 
over time. The calculation of core earnings per share is explained in the Com-
bined Management Report, Chapter 16.3 “Core Earnings Per Share.”
 
 
7	 Gross cash flow = income after income taxes, plus income taxes, plus finan-
cial result, minus income taxes paid or accrued, plus depreciation, amortiza-
tion and impairment losses, minus impairment loss reversals, plus / minus 
changes in pension provisions, minus gains / plus losses on retirements of 
noncurrent assets, minus gains from the remeasurement of already held as-
sets in step acquisitions. The change in pension provisions includes the elim-
ination of non-cash components of EBIT. It also contains benefit payments 
during the year. For details see Combined Management Report, Chapter 16.5 
“Liquidity and Capital ­Expenditures of the Bayer Group.“
8	 Net cash flow = cash flow from operating activities according to IAS 7
9	 LoPC-IR: rate of incidents in which chemicals leak from their primary con-
tainer, such as pipelines, pumps, tanks or drums, per 200,000 working hours 
in areas relevant to plant safety
10	The changes indicated in percent were not calculated on the basis of rounded 
values.
11	Portfolio-adjusted in accordance with the Greenhouse Gas Protocol
12	Volatile organic compounds (VOC) excluding methane
13	Ozone-depleting substances (ODS) in CFC-11 equivalents
14	Energy efficiency: quotient of total energy consumption and manufactured 
sales volume. For MaterialScience, only manufactured sales volumes that 
also form the basis for calculating MaterialScience-specific emissions are 
taken into account.
 
[Table 1.1 (continued)] 
 
2012
2013
Change
 
 
 
%
Employees
Percentage of women in senior management
23
25
 
Number of nationalities in the Group Leadership Circle
23
31
+ 34.8
Proportion of employees with health insurance (%)
94
95
 
Proportion of employees covered by collective agreements 
on pay and conditions (%)
 
53
 
55
 
 
Safety
Recordable Incident Rate for Bayer employees (RIR)
0.49
0.47
 – 4.1  
Lost Time Recordable Incident Rate for Bayer employees (LTRIR)
0.27
0.26
 – 3.7  
Loss of Primary Containment Incident Rate (LoPC-IR)9
0.38
0.35
 – 7.9 
Number of transport incidents
6
11
+ 83.3
Environmental Protection 10
Direct greenhouse gas emissions  
(CO2 equivalents in million t) 11
 
4.24
 
4.09
 
– 3.6
Indirect greenhouse gas emissions  
(CO2 equivalents in million t) 11
 
4.12
 
4.29
 
+ 4.1
Volatile organic compounds (VOC) (thousand t/a) 12
2.60
2.27
– 12.9
Ozone-depleting substances (t / a) 13
16.28
15.65
– 3.9
Total organic carbon (TOC) (thousand t/a)
1.42
1.53
+ 7.7
Total phosphorus in wastewater (thousand t/a)
0.15
0.11
– 24.8
Total nitrogen in wastewater (thousand t/a)
0.70
0.69
– 2.1
Hazardous waste generated (thousand t/a)
603
467
– 22.6
Hazardous waste landfilled (thousand t/a)
175
53
– 69.5
Water use (million m³/a)
384
361
– 6.0
Primary energy consumption (petajoules [1015 joules]/a)
49.05
47.58
– 3.0
Secondary energy consumption (petajoules [1015 joules]/a)
34.14
33.27
– 2.6
Energy efficiency (MWh / t)14
3.50
3.44
 – 1.6  
» TABLE OF CONTENTS
» TABLE OF CONTENTS

2013 was a special year for Bayer. The 150th anniversary of our 
­company’s founding prompted us to celebrate the benefits of Bayer 
innovations. These have helped millions of people around the world, 
including patients, customers, consumers, employees and sharehold-
ers. We not only celebrated Bayer’s long-term ­successes with our 
stakeholders in 2013 but also added more ­innovative products to our 
portfolio and posted record financial results. And we are committed 
to continue with this approach. Our mission “Bayer: ­Science For A 
Better Life” remains our ­driving force. 
Bayer’s products help to overcome urgent societal needs. In 1863 
the global population was 2.5 billion and life expectancy around 
40 years; now there are over 7 billion people, and there are expected 
to be over 9 billion by 2050. Life expectancy has nearly doubled in 
many regions. This tremendous achievement by humankind is partly 
the result of improvements in healthcare and nutrition over the last 
150 years. 
Continuous growth  
in our Anniversary Year
» TABLE OF CONTENTS

2
Dr. Marijn Dekkers, Chairman of the Board of Management of Bayer AG
However, the growing and aging population now faces com­pletely  
new challenges. Health care needs are increasing steadily, particularly 
due to age-related and new diseases, while at the same time health 
care has to remain affordable. 
» TABLE OF CONTENTS

3
The amount of ­arable land is limited, which is why we need a con-
siderable ­improvement in crop yields by 2050 to provide enough 
food for over 9 billion people. And we need to raise resource and 
energy efficiency to ensure the long-term availability of raw materi-
als and energy sources. Bayer currently spends over €3 billion on 
R & D each year and we will continue to do our part in developing 
new products that truly address these urgent societal needs. In 
­other words, we remain dedicated to our mission “Bayer: Science 
For A Better Life.” But we depend on a societal and political envi-
ronment that appreciates the contributions of science and supports 
innovation.
2013 was once again a record year for Bayer. Revenues ­increased 
to over €40 billion, which is more than 5 percent ­after adjusting  
for currency and portfolio effects. Reported EBIT improved by more 
than 25 percent to over €4.9 billion, while net income rose almost 
33 percent to nearly €3.2 billion. Clean ­EBITDA increased by 1.5 per-
cent to €8.4 billion and core earnings per share rose 5.8 percent  
to €5.61. 
The continuing success of our business in 2013 was driven by the 
dynamic development in the Life Sciences. HealthCare achieved 
­encouraging growth, largely due to strong sales of our recently 
launched pharma products. And in CropScience, too, sales continued 
to grow strongly, especially those of its Crop Protection products.  
We generated some 70 percent of total revenues and 90 percent of 
clean EBITDA in our Life Science businesses. However, the perfor-
mance of MaterialScience created headwind for our com­pany. In 
­addition, significant negative currency effects held back clean EBITDA 
by almost €260 million compared to the previous year. 
Our strong focus on not just developing new products but also 
­successfully commercializing them is clearly paying off. As a ­result 
we have improved our competitive position in the Life Sciences.  
For instance, HealthCare made strong progress with five newer 
products. These include our anticoagulant Xarelto™ for stroke and 
» TABLE OF CONTENTS

4
thrombosis prophylaxis as well as Eylea™ to treat age-­related macu-
lar ­degeneration and macular edema. Authorizations were granted 
to Stivarga™ for the treatment of adult patients with ­advanced meta-
static ­colorectal cancer, Xofigo™ for bone metastases in prostate 
cancer and ­Adempas™ for patients with pulmonary ­hypertension. 
Total sales for these five products reached €1.5 billion in 2013. We 
increased our estimate of their combined peak ­annual sales potential 
to at least €7.5 billion. In addition we are ­focusing on the accelerated 
development of five entirely new drug candidates in cardiology, on-
cology and gynecology. The common ­feature of these new drug can-
didates is that they are also new ­molecules with highly promising ac-
tivity profiles. They are intended to improve and broaden treatment 
options for patients in a wide range of indications.
CropScience also had a successful year. Sales advanced substantial-
ly, helped by positive market conditions. This was largely due to suc-
cessful business with our new Crop Protection products. Total sales 
of these new products rose to more than €1.5 billion in 2013. They 
include the fungicides Luna™ and Xpro™. We also have new biologi-
cal products such as the insecticide Votivo™ and the fungicide Sere-
nade™. We anticipate a combined peak annual sales potential of at 
least €4 billion for CropScience products with estimated launch 
dates between 2011 and 2016.
MaterialScience faced considerable challenges in 2013, in what re-
mained a difficult market environment. Both volumes and prices 
were roughly unchanged compared with the prior year. However, 
clean EBITDA fell by about 15 percent. This was largely due to raw 
material cost increases that we were unable to share with our cus-
tomers. In spite of this disappointing result in 2013, we are cau-
tiously optimistic for the future. The expected increase in capacity 
utilization in our industry in the coming years should lead to an im-
proving business climate. 
» TABLE OF CONTENTS

5
Bayer’s positive overall performance last year was supported by 
the commitment and expertise of our employees in the ­service 
companies and administrative functions.
In 2013 we continued to successfully pursue our strategy of aug-
menting organic growth in the Life Sciences with small and 
­medium-sized bolt-on acquisitions. Such acquisitions improve our 
regional positioning, round out our product portfolio or give us 
­access to major new technologies.
In HealthCare we broadened the product offering of our ­women’s 
healthcare franchise by acquiring the U.S. company ­Conceptus: its 
­Essure™ procedure is the only approved non-­surgical permanent 
birth control method. And we acquired ­Steigerwald Arznei­
mittelwerk GmbH, which specializes in ­herbal medicines and rep-
resents a product line extension in our Consumer Care business. 
We also plan to further strengthen our oncology portfolio with the 
acquisition of Norwegian pharma­ceutical company Algeta ASA, 
which would give us full control over ­Xofigo™. We are convinced of 
the potential of this drug and the underlying technology to provide 
prostate cancer patients with innovative treatment options.
Our CropScience portfolio was enhanced with the acquisition of 
companies such as Prophyta GmbH, a leading supplier of micro- 
bial crop protection products. This is an important step, after the 
­acquisition of AgraQuest in 2012, towards building a leading 
­biologics technology platform. We also acquired ­various seed com-
panies in Latin America to strengthen our ­local capabilities there, 
including Wehrtec Tecnologia Agricola Ltda and Agricola Wehr-
mann Ltda in Brazil as well as FN Semillas SA in Argentina.
We enter 2014 with continued optimism. We intend to drive ­further 
growth from our new products in the Life Sciences, and we also 
aim to improve profitability at MaterialScience. To enable our inno-
vations to flourish, we plan to invest over €18 billion in capital 
» TABLE OF CONTENTS

6
­expenditures and research and development in the period from 
2014 through 2016. Bayer is very well positioned: we have identi-
fied our future growth opportunities and the challenges we face, 
and we have mapped out our strategy for continued success. It is 
also important to us that economic growth be achieved in harmony 
with environmental and social responsibility. We adhere to the 
­fundamentals of sustainable ­development and the ten principles  
of the Global Compact of the United Nations.
All of our achievements and our future success depend greatly 
on our highly talented and motivated workforce and the work 
­environment we provide. I strongly believe that in this industry in 
­particular, a robust framework of corporate values is crucial for 
­sustainable success. Leadership, Integrity, Flexibility and Efficiency 
– represented by the word LIFE – are our corporate values and the 
cornerstones of our behavior and focus. These values are now  
firmly integrated into our global performance management system. 
In ­addition, continuous learning is a fundamental part of our orga­
nizational and talent development. Building specific skills, removing 
­organizational obstacles and making improvements every day are 
important elements of Bayer’s culture. For instance, all of our top 
500 leaders took part in a two-day “Leading Innovation” course  
in 2013.
Last year’s anniversary events provided a special opportunity for 
us to focus on our employees. After all, without their dedication, 
­motivation and ingenuity, Bayer would not be the great company  
it is today. On behalf of the entire Bayer Group management team,  
I would like to thank them for their excellent work and their com-
mitment to Bayer. 
» TABLE OF CONTENTS

7
I would also like to thank you, our shareholders, for your ongoing 
support as we continue to pursue our mission and dedicate ourselves 
to innovation. 
Sincerely,
Dr. Marijn Dekkers
Chairman of the Board of Management of Bayer AG
» TABLE OF CONTENTS

10
11
For a Better Life
For a Better Life
Bayer Annual Report 2013
Bayer Annual Report 2013
Nicole Trackl, a nurse in the Department of Urology at Ulm University Hospital, 
prepares chemotherapy for 65-year-old Reinhold Härle.
Fighting 
cancer 
» TABLE OF CONTENTS
» TABLE OF CONTENTS

12
For a Better Life
Bayer Annual Report 2013
Bayer HealthCare // A diagnosis of cancer can be an enormous 
burden for patients and their families. How far has the tumor 
spread? What is the best treatment option? Research-based 
pharmaceutical companies like Bayer and tumor centers all 
over the world are working on ways to further improve patient 
care and identify new treatment options. 
Many men with prostate cancer do in fact achieve this, ac-
cording to Professor Mark Schrader, head of the prostate 
carcinoma center and Medical Director of the Department 
of Urology at Ulm University Hospital. “Surgery can cure 
many patients if the cancer is diagnosed at an early stage,” 
Schrader explains. “But even if curative treatment is no  
longer possible, we have some effective therapeutic options 
that often enable patients to live much longer while pre-
serving their quality of life,” he adds. “Our options have re-
cently been widened by the arrival of several innovative 
drugs that can slow the progression of the disease even in 
the later stages.” 
In Härle’s case, too, the doctors repeatedly succeeded in 
halting the spread of the cancer. After surgery he underwent 
local radiotherapy and at the same time took medication to 
modify his male hormones. This procedure, known as hor-
mone deprivation therapy, suppresses cancer growth. Härle’s 
initial blood tests indicated a response to treatment and it 
­appeared that switching to different drugs was successful. 
However, subsequent tests indicated possible progression. 
With its six tumor centers, Ulm University Hospital is among 
Germany’s leaders in cancer therapy. An interdisciplinary 
team of acknowledged specialists aims to ensure that each 
of the 11,000 or so cancer patients the hospital treats ev-
ery year benefits from the latest medical advances. Reinhold 
Härle is one of these patients. He has known since 2008 
that he has prostate cancer. “It all happened very fast,” says 
the 65-year-old, referring to the initial phase of his illness. 
His general practitioner couldn’t find anything specific during 
Härle’s yearly screening examination. The worrying find-
ings turned up five months later. “The urologist had warned 
me that it could be cancer, yet the final diagnosis still hit  
me hard,” he recalls. 
It didn’t take long for him and his wife Zita Lampharth to 
decide that he would use all the therapies available to get 
the cancer under control. Then, during surgery, it was 
found that the tumor had already spread beyond its initial 
site. So Härle didn’t hesitate to undergo drug therapy. He 
and his wife agreed: “We want our life to be as normal as 
possible for as long as possible.”
Liver 
Stomach
Colorectum
Cervix
Breast
Lung and 
bronchi
Esophagus
Lung and 
bronchi
Liver 
Stomach
Colorectum
Prostate 
8.2 million
people died of cancer in 
2012 according to the 
World Health Organization.
Frequent and  
fatal tumors // 
The types of cancer that 
most often prove fatal  
are those of the lung, stom-
ach, liver, colorectum  
and breast. The incidence  
of these cancers varies  
between men and women.
(Source: American Cancer  
Society, Global Cancer Facts & 
Figures, GLOBOCAN 2012)
» TABLE OF CONTENTS

13
For a Better Life
Bayer Annual Report 2013
“Our therapeutic options have recently been widened by the  
arrival of several innovative drugs.”
Professor Mark Schrader, head of the prostate carcinoma center and  
Medical Director of the Department of Urology at Ulm University Hospital
In many patients the various hormone-suppressing drugs 
are able to counter the spread of cancer cells in the body for 
a long time.
However, when the cancer stops responding to hormone 
deprivation therapy, there is a very high risk of bone metas-
tases developing. The cancer cells associated with prostate 
cancer tend to settle in the bones. The majority of patients 
with late-stage prostate cancer have bone metastases. Doc-
tors refer to this condition as metastatic castration-resistant 
prostate cancer. The metastases can damage and weaken 
the bone, producing pain and increasing the risk of frac-
tures and other complications that can seriously impact the  
patient’s quality of life.
Until a few years ago, doctors’ options for helping patients 
at this stage of their disease were limited to a few treat-
ments designed mainly to relieve the symptoms. Effective 
chemotherapeutic agents capable of delaying disease  
progression have been available for about ten years. More 
recently, innovative medicines have appeared, among 
them radionuclides with a novel mechanism of action that 
target tumor cells in the bone while largely sparing the  
surrounding tissue. 
“This generally relieves pain considerably,” says prostate 
specialist Schrader. “What’s more, a major randomized 
drug trial in patients with castration-resistant prostate can-
cer and bone metastases has shown that this therapy can 
Reinhold Härle has known since 2008 that he has prostate cancer. He is a patient of Professor Mark Schrader (see cover) in the Department of Urology 
at Ulm University Hospital.
» TABLE OF CONTENTS

14
For a Better Life
Bayer Annual Report 2013
also prolong our patients’ lives. From my point of view these 
are the most innovative of the new medicines,” he adds. “The 
fact that the new substances have different mechanisms of 
action also gives doctors more combination options so that 
treatment can be better tailored to the needs of each patient.”
Yet there is still a great need for further research, particular-
ly into ways of extending survival. “This is where the re-
search-based pharmaceutical industry is playing a significant 
role,” Schrader explains. For many patients the opportunity  
to take part in a clinical trial can be a blessing in itself. “They 
receive optimal medical care,” the doctor explains.
For a better quality of life 
Bayer HealthCare is one of the trial partners working with 
doctors at Ulm University Hospital. “Our common goal is  
to develop effective therapies so that cancer patients survive 
for longer and enjoy a better quality of life. Although major 
progress has been made in cancer therapy in recent years, 
there is still a great need for innovative drugs,” explains  
Above // Werner Diesch is 
chairman of the prostate cancer 
self-help group in Ulm. He was  
diagnosed with prostate cancer 
nine years ago. 
Right // Prostate cancer can 
­often be cured through surgery 
if it is diagnosed early.  
Prof. Mark Schrader of Ulm 
University Hospital operates 
using minimally invasive 
­techniques where possible.
100%
was the average 5-year survival  
rate for prostate cancer in  
the period 1996 through 2002. 
(Source: EFPIA)
» TABLE OF CONTENTS

15
For a Better Life
Bayer Annual Report 2013
Dr. Jörg Möller, Head of Global Development at Bayer 
HealthCare. The figures bear this out: according to the 
World Health Organization’s International Agency for Re-
search on Cancer, 8.2 million people died of cancer world-
wide in 2012 alone, making malignant tumors one of the 
leading causes of death. Möller stresses that effective treat-
ment options for many types of cancer are limited, particu-
larly in the advanced stages of the disease. 
Bayer HealthCare’s research pipeline includes multiple 
therapeutic approaches for numerous types of cancer, such 
as prostate, breast, colorectal and lung cancer. The focus  
is on the development of chemical and biological molecules 
that specifically intervene in processes typically associated 
with cancer cells. The aim is to attack the “Achilles heel” of 
the cancer without harming healthy cells. This approach 
makes such drugs potentially more effective than traditional 
chemotherapies and at the same time less of a burden for 
patients. One group of molecules capable of providing tar-
geted cancer therapy is the kinase inhibitors, some of which 
are used to treat metastatic colorectal cancer, for example.
Immunotherapy for cancer 
Immunotherapies are another example of the many inno-
vative approaches being pursued by Bayer’s researchers. 
These involve proteins known as bispecific antibodies that 
dock onto cancer cells, enabling the body’s immune system 
to identify them. It is believed that “killer cells” in the im-
mune system also will bind to the antibody and destroy the 
cancer cell. The company is currently studying one of these 
innovative bispecific antibodies for the treatment of prostate 
cancer.
Dr. Thomas Schnöller, a specialist in drug therapy of tumors 
and a urologist at Ulm University Hospital, believes this and 
other approaches in immunotherapy represent the future of 
cancer treatment. He also expects to see progress with bio-
marker-guided therapies that enable treatment to be better 
tailored to the patient. “Ideally, in the future we will be able  
to use biomarker tests before we treat patients to predict 
their response to a particular therapy. In this way we can 
­select the most suitable treatment option for each patient,” 
he explains.
Nicole Trackl, a nurse in the Department of Urology in Ulm, 
would love to see her patients benefit from this approach. 
She looks after many people with cancer – including those 
who regularly attend the unit to receive out-patient chemo-
therapy. She inserts cannulas, changes infusion bottles,  
adjusts the flow rate of infusion pumps, documents every 
action, and observes her patients. Each receives individual 
treatment, usually consisting of several different medicines. 
“Chemotherapy has side effects for nearly everyone,” she 
says. “It would be great if the therapy had less of an impact 
on their lives.” 
Werner Diesch, 67, chairman of the prostate cancer self-help 
group in Ulm, echoes her words. He was diagnosed with 
prostate cancer nine years ago. His mission is now to encour-
age people to share their experiences and to provide infor-
mation and support to others affected by prostate cancer. The 
group’s monthly meetings at the Weststadthaus community 
center in Ulm are regularly attended by around 80 men and 
their family members. He speaks for them all when he says, 
“We welcome progress of any kind and hope to see new 
drugs that are free of major side effects.” 
Developing innovative medicines and enabling better treat-
ment options is our main task as a health care company. The 
ability to launch a series of new products, as we have recently 
done in our Pharmaceuticals Division, is the result of our 
long-standing commitment to innovation and our dedication 
to deliver tangible value to patients around the world. 
The health care industry is often publicly urged to deliver 
more “breakthrough” innovation as opposed to merely “in-
cremental” innovation. The true value of innovation, however, 
should be always seen in context. When looking at the very 
specific example of cancer, while a new medicine may not  
be able to cure the disease, it may still make a profound dif-
ference to the quality of life for patients and their families  
and impact positively on health systems as a whole. This is 
especially true in the field of oncology, where step-by-step 
improvements in treatment options can add up to substantial 
progress in addressing medical need. The same applies to 
other areas: the gradual “chronification” of severe or even 
life-threatening diseases, such as HIV or multiple sclerosis, is 
first and foremost the result of our industry’s continuous ef-
forts in research and development. 
Bayer HealthCare is in a strong position today. In the future, 
we will continue to focus on improving people’s lives by de­
livering true value through innovation – not only in Pharma-
ceuticals, but also in our Consumer Health segment.
“The value of innovation”
Dr. Olivier Brandicourt,  
Chairman of the Executive Committee of 
Bayer HealthCare, on the subgroup’s strategy
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17
For a Better Life
For a Better Life
Bayer Annual Report 2013
Bayer Annual Report 2013
Safeguarding 
nutrition 
Farmer Santos Tun Coc with members of his family during the snap pea harvest 
in Guatemala, with Lake Atitlan in the background. The 42-year-old has  
joined Bayer CropScience’s food chain partnership.
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18
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Bayer launched its food chain partnership in Guatemala in 
2008 together with the vegetable exporter SIESA. Farmer Tun 
Coc has been involved since the beginning. SIESA’s aim in 
joining the partnership was not only to meet the new quality 
requirements of international import markets in the Ameri-
cas and Europe, but also to raise standards for sustainabili-
ty, user safety and environmental protection for its 2,000 
suppliers – all of whom are small farmers like Tun Coc. Bay-
er CropScience has since offered nearly 100 training work-
shops in the villages. The farmers learn first-hand in their 
own language, Kaqchikel, what they have to do to keep their 
export certification and stay in business. This means good 
prospects for the future, because SIESA Production Head Ed-
gar García is thrilled about the quality of the harvest: “Tun 
Coc and his colleagues produce the best snap peas in the 
world. That’s what our customers tell us. We can depend on 
them because their harvests are good. And the steady in-
comes the farmers enjoy greatly improve their quality of life.” 
Many mud huts have now been replaced by stone houses. 
At the same time, the training programs have raised aware-
ness for hygiene, leading to a decline in gastrointestinal  
disorders. And thanks to heightened environmental aware-
ness, empty product containers are no longer simply 
thrown away, but collected and recycled. Last but not least, 
the success of this program has given the farmers a new 
self-esteem. “It makes us proud to think that somewhere in 
the world, people are buying vegetables from the same 
harvest as the food we are eating ourselves,” says Tun Coc. 
The food chain team in Guatemala is dedicated to improv­
ing the quality of life for farmers. “That way we’re aiding our 
country’s development, too,” says Juan Carlos Gonzalez 
from Bayer CropScience.   
Program extended to other crops  
Bayer CropScience food chain teams like those in Guatemala 
work with farmers in more than 30 countries around the 
world, providing them with a customized solution pack-
“The project is an enormous help to us,” says Santos Tun 
Coc, a farmer who lives in the small village of Caserio San 
Francisco on the Guatemalan plateau. The 42-year-old is 
one of 2,000 farmers who have joined the local food chain 
partnership project of Bayer CropScience. In the past, pest 
infestation and disease infection regularly led to crop losses 
of around 25 percent. Thanks to the new crop protection 
products and especially to the training Bayer provides, he 
is now able to sell almost his entire harvest. That in turn 
means the farmer earns enough to send his six children to 
school – something he could only have dreamed of when  
he was a child. For neither Tun Coc nor any of his 11 siblings 
ever attended school. 
Working closely with customers to ensure a better harvest 
is part of Bayer’s corporate strategy. “Safeguarding global 
nutrition demands a holistic approach. We must all work 
together on sustainable ways to produce enough food to 
feed the steadily growing world population,” says Bayer 
CropScience CEO Liam Condon. He explains that Crop-
Science has already established “food chain partnerships” 
throughout the world in which farmers are offered seed, 
crop protection products and training. “Our food chain 
teams operate worldwide with the aim of ensuring abun-
dant harvests and reliable food supplies.”    
Bayer CropScience // Innovative concepts from Bayer 
CropScience are helping to promote sustainable  
agriculture. Food chain partnerships are an important 
example. In this way Bayer supports all the partners 
from seed to shelf: farmers and food processors,  
importers and exporters, and wholesalers and retailers. 
“Our food chain teams operate 
worldwide with the aim of  
ensuring abundant harvests and 
reliable food supplies.”
Liam Condon,  
CEO of Bayer CropScience
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For a Better Life
Bayer Annual Report 2013
The food chain partnership project in Guatemala was jointly initiated by Bayer CropScience and vegetable exporter SIESA. The picture shows SIESA 
worker Rolando Machan in the field.
The importance of small farms // Farms averaging five acres in size account for half of  
all agricultural production worldwide. Only 30 percent of production comes from large-scale enterprises. 
(Source: World Bank)
50%
of crops are produced by 
small farmers.
30%
of agricultural production 
comes from large-scale  
enterprises.
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20
For a Better Life
Bayer Annual Report 2013
Above // Devendra Singh Tomar (right) from 
basmati exporter LT Foods and farmer Anand 
Bhandari (center) check the quality of freshly 
cut rice that has been drying in the field for 
three days near the village of Bari in the Indian 
state of Madhya Pradesh.
Left // Yogesh Mishra (left), food chain manager 
for Bayer CropScience in India, and Vinit Wad-
hawan from LT Foods inspect new packages 
of Daawat brand rice.
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21
For a Better Life
Bayer Annual Report 2013
age. The concept was devised eight years ago in response to 
the needs of the food industry. “At that time the industry 
was called upon to address the need for greater food securi-
ty, with consumers increasingly placing importance on prod-
ucts being sustainably produced and traceable all the way 
back to the producer,” says Silke Friebe, Head of Global 
Food Chain Management at Bayer CropScience. There are 
now some 240 food chain partnership projects. Initially the 
focus was on fruit and vegetables, and this successful 
model was recently expanded to include field crops such 
as rice – the staple food for half the world’s population. 
With demand for this crop outstripping supply, the govern-
ment of the Indian state of Madhya Pradesh decided several 
years ago to promote the growing of basmati rice. “The 
challenge then was to deliver a quality level that would satis-
fy the requirements of European and North American reg-
ulators,” explains Surinder Kumar Arora, Co-Managing Di-
rector of LT Foods, one of India’s leading basmati 
exporters. LT Foods therefore turned to the food chain team 
of Bayer CropScience in 2010 to fight diseases and pests 
and ensure that the import authorities’ requirements would 
be met so that consumers could enjoy one of India’s finest 
agri products.   
Much has been achieved since then. “We have developed 
customized crop protection solutions and trained some 
2,000 small farmers,” says Yogesh Mishra, food chain man-
ager for Bayer CropScience in central India. The training 
programs focused on identifying diseases and pests. Anoth-
er topic was the correct use of crop protection products, 
spraying techniques and optimum user protection. 
The crucial test takes place each fall to determine what has 
been achieved. The basmati stalks, which are up to 1.4 meters 
long, are then cut in bundles, laid out to dry, threshed by 
hand and transported to the collection point of LT Foods. 
“We have significantly improved quality and productivity 
over the past three years. Our rice can hold its own in the 
world’s supermarkets, and consumers can enjoy it with a 
good conscience,” says Arora. He explains that the farmers’ 
yields have risen by 8 to 10 percent and their net incomes 
by 10 to 12 percent. 
One of the rice growers whose crops received the highest 
marks from LT Foods is Anand Bhandari from the small  
village of Bharkachha Kalan. The cooperation with Bayer 
CropScience and LT Foods was a turning point in his farm-
ing career. “Our knowledge of pests, diseases and cultivation 
methods makes us more independent. We can now identify 
Our planet will have more than nine billion people to feed by 
2050. This presents a tremendous challenge for farmers. 
They need to produce more food, although their most impor- 
tant resources – arable land and water – cannot be increased 
indefinitely.  
That is why we support farmers in sustainably raising their 
productivity: with stress-tolerant, high-yielding seed varie- 
ties for cotton, soybeans, canola, wheat and vegetables, and 
with state-of-the-art crop protection products that safeguard 
plants from diseases, insect pests and weeds. We offer farm­
ers technology and expertise in the safe, responsible and en-
vironmentally compatible use of our products. In addition, 
we encourage sustainable agricultural practices through our 
food chain partnerships. 
Feeding the global population is among this century’s great-
est challenges. We can only master it by working together to 
sustainably drive farming’s future.
Liam Condon, Chairman of the Executive Committee 
of Bayer CropScience, on the subgroup’s strategy 
“Promoting sustainable 
agriculture”
problems ourselves, and we know the right solutions. The 
knowledge I’ve gained has enabled me to increase yields  
by as much as 15 to 20 percent.” 
From Latin America to Europe to Asia, food chain partner-
ships are of long-term benefit to the participating farms and 
communities worldwide. The projects give farmers access 
to the latest scientific knowledge and to the expertise of a 
global research-based company. In this way, Bayer helps to 
improve people’s lives and safeguard food supplies for a 
growing world population. 
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23
For a Better Life
For a Better Life
Bayer Annual Report 2013
Bayer Annual Report 2013
Conserving 
resources 
Bayer MaterialScience has developed a nine-meter-long rotor blade made of polyurethane in  
collaboration with the Huaye Wind Power Group, China. Dr. Marc Schütze (right), project  
manager at Bayer MaterialScience, and Kim Klausen (left), head of the new Wind Energy Compe-
tence and Development Center, take delivery of a rotor blade in Leverkusen.
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24
For a Better Life
Bayer Annual Report 2013
It is with products like this new infusion resin that Bayer 
MaterialScience is helping to expand the use of renewable 
energy sources so that energy systems can be restructured. 
Whether in wind turbines or solar systems, raw materials 
and application solutions for polyurethane foams or coatings 
and high performance polycarbonate plastics make im-
provements possible in many areas. 
“We also consider ourselves to be pioneers in the key field 
of energy efficiency and are constantly developing new ways 
to save electricity and conserve resources,” says Dr. Tony Van 
Osselaer, the Bayer MaterialScience Management Board 
member responsible for production. “Products and process-
es – the plastics industry is an important leader in both of 
these areas as we advance toward a more sustainable future.”
Bayer MaterialScience intends to work as closely as possible 
with other industries along the way. For example, the 
company established a global Wind Energy Competence and 
Development Center in Otterup, Denmark, in 2012 to steer 
the company’s global wind energy activities. “We also want 
to share experience and collaborate with the major wind 
power companies in Denmark,” explains the center’s director, 
Kim Harnow Klausen.
The choice of location was deliberate. After all, Denmark 
has been the leader in this sector for decades and produces 
nearly half of all wind turbines worldwide. The field offers 
tremendous potential, with industry experts predicting wind 
energy production to triple in the next ten years alone. In 
other words, wind energy is a broad area of activity for the 
Dr. Marc Schütze runs his hand over the shiny white surface. 
The rotor blade is smooth and compact, as if it were made 
from one piece. “The surface actually hides a complex in-
terior,” he explains. The innovative rotor blade comprises 
dozens of layers of thin glass fibers, a very stable core and a 
special plastic that holds everything together. The project 
manager from Bayer MaterialScience is proud of this mate-
rial, a polyurethane resin that could give wind energy a 
real lift.
The nine-meter-long prototype that Schütze is inspecting 
highlights the many advantages of the newly developed 
plastic. It was built by a Chinese manufacturer in collabora-
tion with Bayer MaterialScience. “The polyurethane rotor 
blade is more stable and durable than previous models made 
using epoxy resins as the infusion material,” Schütze says. 
And stability and durability are the critical properties in wind 
power turbines, because the rotors are getting longer and 
heavier to boost energy yields, and this increases the forces 
acting on them. That makes high stability and low weight 
all-important. Weight reductions of up to 10 percent will be 
possible in the future.
However, this innovation from Bayer MaterialScience is use-
ful for another reason: it greatly simplifies the manufac-
ture of the rotor blades. The polyurethane resin flows more 
quickly through the fiber layers, is distributed more evenly 
and hardens more quickly. That saves manufacturers money. 
“Cutting costs is a crucial factor for wind power,” Schütze 
says, “because the rotor blades account for about one-fourth 
of the total costs of a system.” 
Bayer MaterialScience // Sun, wind and water: energy 
from renewable sources is the way of the future. Bayer 
MaterialScience is supporting this trend with innova-
tive products and continually developing new methods 
for conserving energy and resources.
25%
of the entire manufacturing  
costs of a wind turbine relate  
to the rotor blades.
25%
of the entire manufacturing  
costs of a wind turbine relate  
to the rotor blades.
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25
For a Better Life
Bayer Annual Report 2013
“Cutting costs is a crucial factor  
for wind power.”
Dr. Marc Schütze, project manager at Bayer MaterialScience
Left // Bayer engineer Dirk Passmann examines  
the material and the production quality of a 
component for a new wind turbine rotor blade.
Below // The rotor blades of wind turbines are  
being steadily increased in length to raise elec­
tricity output. This makes it essential to improve 
the blades’ stability and reduce their weight.
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26
For a Better Life
Bayer Annual Report 2013
material experts at Bayer MaterialScience, who already are 
coming up with new ideas. “For example, we think rotor 
blade cores could be made from fiber-reinforced polyure-
thane rather than wood,” says Klausen.
Another of the company’s materials also is ideal for innova-
tions in wind energy: polycarbonate, a lightweight but  
robust, high-performance plastic, can be used in the simple 
mass production of mini-rotor blades to generate electricity 
for individual homes in remote areas. 
Bayer MaterialScience also is setting its sights on innova-
tions for harnessing energy from the sun, such as with 
photovoltaic modules that can be directly integrated into 
the walls of a house. Solar cells of this kind currently have 
a glass cover. Engineers in the company are now working 
to provide them instead with a thin coating of polyure-
thane, thereby reducing weight, cutting costs, increasing 
design options and improving energy efficiency.
The control room at the MDI 
plant in Caojing, Shanghai:  
Bayer employees Fanny Fan 
(front), Todd Huang (center)  
and Qi Wu use the ­STRUCTese™ 
management system to reduce 
the facility’s energy consumption.
“We are constantly developing 
new ways to save electricity  
and conserve resources.”
Dr. Tony Van Osselaer, member of the Board of Management of  
Bayer MaterialScience responsible for production
But Bayer MaterialScience does not just help others to use 
energy more efficiently, it is also constantly striving to  
reduce power, gas and steam inputs at its own production 
facilities. In fact, the company has set itself a new goal:  
“By 2020, we aim to increase energy efficiency by 30 percent 
compared to 2005,” says Van Osselaer. At the same time, 
carbon dioxide emissions per metric ton of material sold are 
to be slashed by 40 percent.
Some of the most important conditions for achieving this 
goal are already in place, including the STRUCTese™ man-
agement system, which optimally controls the energy con-
sumption of individual units, reducing it by an average of 
one tenth. Developed by Bayer MaterialScience, this meth­-
od has been introduced in 60 plants worldwide since 2008, 
from Baytown in the United States to Leverkusen, Germany, 
and Caojing, China. As a result, a total of over 1.2 million 
megawatt hours of energy are now saved every year. “Ac-
cordingly, CO2 emissions are falling by a good 360,000 met­
ric tons annually,” reports energy manager Matthias Böhm.
In addition to this comprehensive method, Bayer  
MaterialScience also uses numerous individual, innovative 
methods to manufacture its products in the most eco-friendly 
way possible. In the polyurethanes area, for example, the 
company has developed a technology that reduces the ener-
gy required to produce the TDI component by 60 percent. The 
fact that one critical chemical reaction no longer takes place 
in solution, but in the gaseous state, makes this possible. 
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27
For a Better Life
Bayer Annual Report 2013
Known as gas-phase technology, it is already in use in Cao-
jing and will soon also be introduced in Dormagen, where 
the company is building a new, large-scale TDI facility.
Chlorine, one of the most important base substances in the 
entire chemical industry, is needed for plastics precursors 
such as TDI, as well as for drugs and fertilizers. The produc-
tion of chlorine uses enormous amounts of electricity, roughly 
two-thirds of total consumption at Bayer MaterialScience. 
But the company has found a way to reduce the power re-
quirement here as well: using oxygen-depolarized cathode 
(ODC) technology that the company developed with a part-
ner, chlorine can be produced with up to 30 percent less 
electricity compared to the standard process.
“Widespread use of this innovative electrolysis method could 
benefit some countries’ entire economies,” Van Osselaer 
points out. “If all manufacturers in Germany were to use it, 
we could save a quantity of electricity equal to the annual 
consumption of a major city like Cologne.” Global market-
ing of the process began in 2013. However, it would seem 
that ODC technology can be used to produce more than just 
chlorine. Bayer MaterialScience currently is testing it for 
numerous other potential applications, such as fuel cells or 
zinc-air batteries that can store electricity produced from 
renewable sources.
Whether highly efficient processes or eco-friendly products: 
the innovative capability of Bayer MaterialScience continues 
to provide new solutions for a sustainable energy supply.
Patrick Thomas, Chairman of the Executive Committee of 
Bayer MaterialScience, on the subgroup’s strategy
“For the needs  
of a changing world”
As the planet’s population increases in size and wealth, de-
mands on fossil-based resources are growing at an unprece-
dented level. Our modern world is characterized by major 
challenges. Bayer MaterialScience believes that innovation 
will be a major contributor to tackling these challenges and is 
focused on developing new processes, products and solutions 
for key areas such as the manufacturing, construction, auto-
motive and electronics industries. 
Our focus is on understanding the main issues that society 
faces and on satisfying the current and future needs of markets 
and consumers. We intend to focus our research, develop-
ment and product portfolio through an agenda that meets the 
needs of our own sustainability targets and the future needs  
of society. Everything we do must benefit society, have no fur-
ther adverse effect on the environment and deliver economic 
benefit. Our guide is the Group mission “Bayer: Science For 
A Better Life.”
In line with this, we will continue to pursue long-term, profit-
able growth. We aim to maintain our leading position in  
the traditional markets of Europe and the Americas while con-
tinuing our program of expansion in the growth markets,  
particularly Asia. We will respond to the increasing competitive 
pressure by, among other things, expanding our technical  
excellence and continually improving our processes. 
Optimizing energy 
consumption // 
The STRUCTese™ management system  
developed by Bayer MaterialScience has 
been introduced at some 60 facilities 
worldwide since 2008. The system opti­
mizes the energy consumption of individ­
ual units, reducing it by an average of 
one tenth. This lowers CO2 emissions by 
more than 360,000 tons per year.
1.2 million
megawatt hours of primary energy 
per year can be saved using the 
STRUCTese™ management system.
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Integrated Annual Report
This year’s Annual Report combines our 
financial and our sustainability reporting 
for the first time. Our aim in integrating  
the two previous publications is to elucidate 
the interactions between financial, eco­
logical and societal factors and underline  
their influence on our company’s long-term 
development. In this Annual Report we  
document our business achievements and 
explain how sustainability is contributing  
to our future success.
	For further details see “Reporting Principles” on page 350.
28
About this Report
Bayer Annual Report 2013
» TABLE OF CONTENTS

How to use this report-
The sales, earnings and other financial data for the Bayer Group can be 
found in the Report on Economic Position, which is color­coded in the table 
of contents. 
Our Annual Report is available in a print and an online version. The online 
Annual Report at WWW.BAYER.COM / AR13 is the “Annual Report 2013 –  
Augmented Version,” which contains supplementary material. The print 
­version refers the reader to numbered “Online annexes” featuring this 
­additional information. You can enter these numbers in a search mask on 
any page of the online Annual Report to directly access the annexes. 
Information regarding the external audits of the print and augmented versions 
can be found under “Reporting Principles” on page 350. 
PDF files of the print version (“Annual Report 2013”) and the online version 
(“Annual Report 2013 – Augmented Version”) are available for download 
from the Bayer website.  	
Online annexes
	Cross-references within the Annual Report	
References to internet sites
The Annual Report 2013 –  
Augmented Version can be found 
at WWW.BAYER.COM / AR13.
The Annual Report 2013 (print version)  
is also available as an app from the 
appstore under “Bayer Annual Report.”
29
About this Report
» TABLE OF CONTENTS

­ ­ 
31
To our Stockholders
Bayer Annual Report 2013
Bayer Annual Report 2013
To our Stockholders
30
DR. Marijn Dekkers
Chief Executive Officer of Bayer
Prof.  Wolfgang Plischke¹
Technology · Innovation · 
­Sustainability · Asia/Pacific region 
² Labor Director
Patrick Thomas
Chief Executive Officer,  
­Bayer MaterialScience 
Michael König¹/²
Human Resources · Latin America /
Africa / Middle East region
Dr. Olivier Brandicourt
Chief Executive Officer,  
Bayer HealthCare 
Kemal Malik¹
Liam Condon
Chief Executive Officer,  
Bayer CropScience 
Werner Baumann¹
Finance · Europe and North 
America regions
Marijn Dekkers studied chemistry and 
chemical engineering in Nijmegen 
and Eindhoven. After gaining a Ph. D., 
he began a career in research with 
General Electric in the United States. 
Having held various positions in ­ 
the United States, latterly as Chief 
Executive Officer and President  
of Thermo Fisher Scientific Inc., 
­Dekkers took over as Bayer Chief 
Executive Officer in October 2010.
Wolfgang Plischke studied biology 
at Hohenheim University. Having 
gained a Ph. D., Plischke began his 
career with Bayer at the subsidiary 
Miles in 1980. After holding a number 
of positions in Germany and ­a­broad, 
he became Head of the Pharmaceu­
ticals Business Group in North 
America and subsequently world­wide. 
Plischke was appointed to the Board 
of Management in March 2006.
¹  Prof. Wolfgang Plischke retires on April 29, 2014. He will be succeeded as of that date by Kemal Malik, who already joined the Board of Management in February. Malik then assumes responsibility
for Innovation and the North America and Latin America regions. Responsibility for Technology, Sustainability and the Asia/Pacific region will be transferred to Michael König effective April 30, 2014.
Patrick Thomas studied engineer­
ing at Oxford University. He 
­began his ­career with Imperial 
Chemical ­Industries (ICI). Posi­
tions held by ­Thomas include  
that of CEO of ICI Polyurethanes  
and Corporate Executive Vice 
President of Huntsman Matlin 
­Patterson. ­Thomas took over as 
Chief Executive Officer of Bayer 
­MaterialScience in January 2007.
Michael König studied chemical pro- 
c­ess engineering in Dortmund, joining 
­Bayer in 1990. After holding positions of 
increasing responsibility, he transferred 
to China in 2000 as a General Manager. 
In 2007 König became ­Senior Bayer 
­Representative, and from 2011 he ­headed 
up the Polycarbonates Business Unit of 
Bayer ­MaterialScience in ­Shanghai.  
He was appointed to the Bayer Board of 
Management in April 2013. 
Olivier Brandicourt studied medicine 
and biology in Paris and has worked as 
a practicing physician. Having begun 
his industrial career in 1987 at Parke- 
Davis / Warner-Lambert, he subse­
quently joined Pfizer, where he held 
positions of increasing responsibility, 
becoming a member of its Executive 
Leadership Team in 2010. Brandicourt 
took over as Chief Executive Officer of 
Bayer HealthCare in November 2013.
Kemal Malik studied medicine and 
worked in a London hospital. After 
holding different positions of increas­
ing responsibility at Bristol-Myers 
Squibb, he joined Bayer in 1995. In 
2007 Malik became a member of the 
Executive Committee, Head of Glob­al 
Development and Chief Medical 
­Officer of Bayer HealthCare. He was 
appointed to the Bayer Board  
of ­Management in February 2014.
Liam Condon studied International Busi­
ness at Dublin City University and the 
Technical University of Berlin. He held 
various positions of increasing responsibil­
ity with the former Schering AG, Berlin, 
Germany, and with Bayer HealthCare in 
Europe and Asia, including Managing Direc­
tor of Bayer HealthCare China and Head 
of Bayer HealthCare in Germany. ­Condon 
took over as Chief Executive Officer of 
­Bayer CropScience in December 2012.
Werner Baumann studied eco­nomics 
in Aachen and Cologne. He joined 
Bayer AG in 1988, where his first du­
ties were in the Corporate Finance  
Department. After holding positions of 
increasing responsibility in Spain and 
the United States, he became a mem­
ber of the Board of Management of 
Bayer HealthCare and its Labor Direc­
tor. Baumann was appointed Chief  
Financial Officer of Bayer in May 2010.
The Executive Council, chaired by the Group CEO 
and comprising the members of the Bayer AG 
Board of Management and the CEOs of the three 
subgroups Bayer HealthCare, ­Bayer CropScience 
and Bayer MaterialScience
Executive Council
Executive Council
Executive Council
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32
To our Stockholders
Bayer Annual Report 2013
Report of the Supervisory Board
Report of the Supervisory Board
During 2013 the Supervisory Board monitored the conduct of the company’s business by the Board of 
Management on a regular basis with the aid of detailed written and oral reports received from the Board 
of Management, and also acted in an advisory capacity. In addition, the Chairman of the Supervisory 
Board and the Chairman of the Board of Management maintained a constant exchange of information. 
In this way the Supervisory Board was kept continuously informed about the company’s intended busi­
ness strategy, corporate planning (including financial, investment and human resources planning), earn­
ings performance, the state of the business and the situation in the company and the Group as a whole.
Where Board of Management decisions or actions required the approval of the Supervisory Board, 
whether by law or under the Articles of Incorporation or the rules of procedure, the draft resolutions 
were inspected by the members at the meetings of the full Supervisory Board, sometimes after pre­
paratory work by the committees, or approved on the basis of documents circulated to the members. 
The ­Supervisory Board was involved in decisions of material importance to the company. We discussed 
at length the business trends described in the reports from the Board of Management and the pros­
pects for the development of the Bayer Group as a whole, the individual organizational units and the 
principal ­affiliated companies in Germany and abroad.
Four meetings of the Supervisory Board took place during 2013. No member of the Supervisory Board 
attended fewer than half of its meetings. The average attendance rate by Supervisory Board members at 
the meetings held in 2013 was 95 percent. 
The members of the Board of Management regularly attended the meetings of the Supervisory Board.
Principal topics discussed by the Supervisory Board
The deliberations of the Supervisory Board focused on questions relating to the strategies and busi­
ness activities of the Group as a whole and of the subgroups. The discussions at the respective meet­
ings in 2013 centered on various topics. At the February meeting, the Supervisory Board discussed 
the 2012 Annual Report and the agenda for the 2013 Annual Stockholders’ Meeting. It also dealt at 
length with the Bayer Group’s risk management system and matters relating to the Board of Manage­
ment’s compensation. 
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33
To our Stockholders
Bayer Annual Report 2013
Report of the Supervisory Board
Werner Wenning, Chairman of the Supervisory Board of Bayer AG
At its meeting in April, the Supervisory Board reviewed the development of the business in the first 
­quarter and discussed the imminent Annual Stockholders’ Meeting. It also adopted resolutions on the 
projects to acquire Conceptus, Inc. and Steigerwald Arzneimittelwerk GmbH. 
The discussions at the September meeting of the Supervisory Board focused on the situation of the 
Group, including developments concerning its strategy and competitive position. The main areas of re­
search in the HealthCare and CropScience subgroups were also discussed along with the compensation 
of the Board of Management and the changes to the German Corporate Governance Code. Finally, the 
Supervisory Board adopted a resolution on a formal amendment to the Articles of Incorporation.
At its meeting in December 2013, the Supervisory Board appointed Mr. Kemal Malik to the Board of 
Management effective February 1, 2014 and extended the term of office of Prof. Wolfgang Plischke as 
a member of the Board of Management until April 29, 2014, the date of the Annual Stockholders’ 
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34
To our Stockholders
Bayer Annual Report 2013
Report of the Supervisory Board
Meeting. The Supervisory Board determined ceilings for the compensation of the Board of Manage­
ment and discussed the latest recommendations of the German Corporate Governance Code. It also 
undertook the routine review of the fixed compensation of the members of the Board of Management 
and the pensions of the former members of the Board of Management. Another major focus was on 
the planned acquisition of Algeta ASA. Also at this meeting, the Board of Management presented its 
planning for the business operations, the finances and the asset and liability structure of the Bayer 
Group in the years 2014 through 2016. In addition, the Supervisory Board resolved on the declaration 
concerning the German Corporate Governance Code. Following the meeting, an information and dis­
cussion forum was held on the management of risks associated with legal disputes.
Committees of the Supervisory Board
The Supervisory Board has a Presidial Committee, an Audit Committee, a Human Resources Committee 
and a Nominations Committee. The current membership of the committees is shown on page 339.
The meetings and decisions of the committees, and especially the meetings of the Audit Committee, 
were prepared on the basis of reports and other information provided by the Board of Management. 
Reports on the committee meetings were presented at the meetings of the full Supervisory Board.
Presidial Committee: This comprises the Chairman and Vice Chairman of the Supervisory Board along 
with a further stockholder representative and a further employee representative. The Presidial Commit­
tee serves primarily as the mediation committee pursuant to the German Codetermination Act. It has the 
task of submitting proposals to the Supervisory Board on the appointment of members of the Board of 
Management if the necessary two-thirds majority is not achieved in the first vote at a meeting of the full 
Supervisory Board. Certain decision-making powers in connection with capital measures, including  
the power to amend the Articles of Incorporation accordingly, are also delegated to this committee. The 
Presidial Committee may also undertake preparatory work for full meetings of the Supervisory Board.
In 2013 the Presidial Committee was not required to convene in its capacity as the mediation committee 
or for any other purpose.
Audit Committee: The Audit Committee comprises three stockholder representatives and three em­
ployee representatives. The Chairman of the Audit Committee in 2013, Dr. Klaus Sturany, satisfies the 
statutory requirements concerning the independence and the expertise in the field of accounting or 
­auditing that a member of the Supervisory Board and the Audit Committee is required to possess. The 
Audit Committee meets regularly four times a year.
Its tasks include examining the company’s financial reporting along with the financial statements of 
­Bayer AG, the consolidated financial statements of the Bayer Group, the combined management report, 
the proposal for the use of the distributable profit of Bayer AG, and the interim financial statements and 
management reports of the Bayer Group, all of which are prepared by the Board of Management. On 
the basis of the auditor’s report on the audit of the financial statements of Bayer AG, the consolidated 
financial statements of the Bayer Group and the combined management report, the Audit Committee 
develops proposals concerning the approval of the statements by the full Supervisory Board. The Audit 
Committee is also responsible for the company’s relationship with the external auditor. The Audit Com­
mittee submits a proposal to the full Supervisory Board concerning the auditor’s appointment, prepares 
the awarding of the audit contract to the audit firm appointed by the Annual Stockholders’ Meeting, 
suggests areas of focus for the audit and determines the audit fees. It also monitors the independence, 
qualifications, rotation and efficiency of the auditor. In addition, the Audit Committee oversees the 
­company’s internal control system – along with the procedures used to identify, track and manage risk 
– and the internal audit system. It also deals with corporate compliance issues and discusses develop­
ments in this area at each of its meetings.
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35
To our Stockholders
Bayer Annual Report 2013
Report of the Supervisory Board
The Chairman of the Board of Management and the Chief Financial Officer regularly attended the 
­meetings of the Audit Committee. Representatives of the auditor were also present at all the meetings 
and reported in detail on the audit work and the audit reviews of the interim financial statements.
The meetings focused on a number of topics. At the February meeting, the Audit Committee discussed 
the consolidated financial statements and the Group’s tax strategy. It also carefully considered the risk 
report, which covered the risk management system, planning and market risks, legal risks, corporate 
compliance, the report on process and organizational risks and the internal control system, and the re­
port by Corporate Auditing. At this meeting it also submitted a recommendation to the full Supervisory 
Board concerning the resolution to be put before the Annual Stockholders’ Meeting on the appointment 
of the auditor of the financial statements.
The April meeting mainly dealt with the yearly report of the Group Compliance Officer and with 
­determining the main areas of focus for the audit of the 2013 financial statements. The July meeting 
was ­devoted to the audit being conducted by the German Financial Reporting Enforcement Panel 
(DPR). At its meeting in October, the Audit Committee discussed the ongoing reorganization of the 
­accounting function, the status of the DPR audit and the intended integration of the Sustainable Devel­
opment ­Report into the management report. 
Human Resources Committee: On this committee, too, there is parity of representation between stock­
holders and employees. It consists of the Chairman of the Supervisory Board and three other members. 
The Human Resources Committee prepares the personnel decisions of the full Supervisory Board, which 
resolves on appointments or dismissals of members of the Board of Management. The Human Resources 
Committee resolves on behalf of the Supervisory Board on the service contracts of the members of the 
Board of Management. However, it is the task of the full Supervisory Board to resolve on the total com­
pensation of the individual members of the Board of Management and the respective compensation 
components, as well as to regularly review the compensation system on the basis of recommendations 
submitted by the Human Resources Committee. The Human Resources Committee also discusses the 
long-term succession planning for the Board of Management.
The Human Resources Committee convened on three occasions in 2013. The matters discussed at these 
meetings concerned the compensation and contracts of the members of the Board of Management,  
the appointment of Mr. Kemal Malik to the Board of Management and the extension of Prof. Wolfgang 
Plischke’s term of office as a member of the Board of Management. 
Nominations Committee: This committee carries out preparatory work when an election of stockholder 
representatives to the Supervisory Board is to be held. It suggests suitable candidates for the Super­
visory Board to propose to the Annual Stockholders’ Meeting for election. The Nominations Committee 
comprises the Chairman of the Supervisory Board and the other stockholder representative on the 
­Presidial Committee.
At one meeting and on several other occasions in 2013, the Nominations Committee discussed 
­possible candidates for election to the Supervisory Board as stockholder representatives at the 2014 
Annual Stockholders’ Meeting. The committee also discussed the mid-term planning for the next 
­regular elections.
Corporate Governance
The Supervisory Board dealt with the ongoing development of corporate governance at Bayer, taking 
into account the May 13, 2013 version of the German Corporate Governance Code. In December the 
Board of Management and the Supervisory Board issued a new declaration concerning the German 
­Corporate Governance Code, which is reproduced on page 185 of the Annual Report. 
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36
To our Stockholders
Bayer Annual Report 2013
Report of the Supervisory Board
Financial statements and audits
The financial statements of Bayer AG were prepared according to the requirements of the German 
Commercial Code and Stock Corporation Act. The consolidated financial statements of the Bayer 
Group were prepared according to the German Commercial Code and the International Financial 
­Reporting Standards (IFRS). The combined management report was prepared according to the German 
Commercial Code. The auditor, PricewaterhouseCoopers Aktiengesellschaft, Wirtschaftsprüfungs­
gesellschaft, Essen, has audited the financial statements of Bayer AG, the consolidated financial state­
ments of the Bayer Group and the combined management report. The conduct of the audit is ex­
plained in the auditor’s ­reports. The auditor finds that Bayer has complied, as appropriate, with the 
German Commercial Code, the German Stock Corporation Act and / or the International Financial 
­Reporting Standards endorsed by the European Union, and issues an unqualified opinion on the finan­
cial statements of Bayer AG and the ­consolidated financial statements of the Bayer Group. The finan­
cial statements of Bayer AG, the consolidated financial statements of the Bayer Group, the combined 
management report and the audit reports were submitted to all members of the Supervisory Board. 
They were discussed in detail by the Audit Committee and at a meeting of the full Supervisory Board. 
The auditor submitted a report on both occasions and was present during the discussions.
We examined the financial statements of Bayer AG, the proposal for the use of the distributable  
profit, the consolidated financial statements of the Bayer Group and the combined management 
­report. We have no objections, thus we concur with the result of the audit. 
We have approved the financial statements of Bayer AG and the consolidated financial statements of 
the Bayer Group prepared by the Board of Management. The financial statements of Bayer AG are 
thus confirmed. We are in agreement with the combined management report and, in particular, with 
the assessment of the future development of the enterprise. We also concur with the dividend policy 
and the decisions concerning earnings retention by the company. We assent to the proposal for 
­distribution of the profit, which provides for payment of a dividend of €2.10 per share.
The Supervisory Board would like to thank the Board of Management and all employees for their 
­dedication and hard work in 2013.
Leverkusen, February 26, 2014
For the Supervisory Board:
Werner Wenning 
Chairman
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37
To our Stockholders
Investor Information
Bayer Annual Report 2013
150
140
130
120
110
100
90
Investor Information
(indexed; 100 = Xetra closing price on December 31, 2012; source: Bloomberg)
Bayer +45.2%
dax +25.5%
dj euro stoxx 50 +21.5%
Performance of Bayer Stock in 2013
[Graphic 2.1]
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
// 2013: Bayer stock clearly outperforms DAX 
with yield of 45 percent
// Share price above €100 for the first time
// Board of Management and Supervisory Board 
propose dividend increase to €2.10 per share 
for 2013
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38
To our Stockholders
Bayer Annual Report 2013
Investor Information
The stock market in 2013
International equity markets performed positively
2013 was a good year for the international equity markets thanks to favorable economic prospects and 
the expansionary monetary policies of the European Central Bank and the U.S. Federal Reserve. After the 
DAX had topped 8,000 points in March, a brief downturn in April pushed it back below 7,500 and thus to 
a lower level than at the start of the year. In October, however, the DAX exceeded 9,000 points for the 
first time in its 25-year history. It closed 2013 at 9,552 points for a gain of about 25 percent on the year.
The European equities index EURO STOXX 50 (performance index) rose by about 22 percent, ending the 
year at 5,625 points. Market trends in the United States and Japan were also very positive, with the S&P 
500 gaining around 30 percent and the Nikkei 225 nearly 57 percent.
Bayer shares above €100 for the first time
Bayer stock posted another excellent performance in 2013, appreciating by 41.8 percent and thus 
­outperforming the benchmark sector indices. The EURO STOXX Health Care Index (performance index) 
rose by 14 percent in 2013, while the EURO STOXX Chemicals Index (performance index) climbed by 
19 percent. 
Bayer’s share price developed especially positively in the first and fourth quarters. Including the 
dividend of €1.90 per share paid at the end of April 2013, the return for the year was 45.2 percent. 
Bayer shares closed 2013 in triple digits at €101.95, close to the annual and all-time high of €103.05. 
Our company’s market capitalization more than doubled over the two-year period from year end 2011 to 
year end 2013. At the end of 2013 Bayer had the highest weighting in the DAX index, at over 10 percent.
More than 90 percent of the roughly 30 equity analysts who regularly rate our company had a buy or 
hold recommendation on the stock at the end of last year. 
Bayer Stock Data
[Table 2.1]
2012
2013
Earnings per share
€
2.91
3.86
Core earnings per share *
€
5.30
5.61
Gross cash flow per share
€
5.51
7.05
Equity per share
€
22.43
25.16
Dividend per share
€
1.90
2.10
Year-end price **
€
71.89
101.95
High for the year **
€
72.95
103.05
Low for the year **
€
47.97
69.01
Total dividend payment
€ million
1,571
1,737
Number of shares entitled to the dividend (Dec. 31)
million
826.95
826.95
Market capitalization (Dec. 31)
€ billion
59.4
84.3
Average daily share turnover on German stock exchanges
million
2.7
2.1
Price / EPS **
24.7
26.4
Price / core EPS **
13.6
18.2
Price / cash flow **
13.0
14.5
Dividend yield
%
2.6
2.1
2012 figures restated
*		 For details on the calculation of core earnings per share, see Combined Management Report, Chapter 16.3.
**	Xetra closing prices (source: Bloomberg)
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39
To our Stockholders
Bayer Annual Report 2013
Investor Information
Bayer retains good refinancing opportunities on the bond market
Issue volume on the corporate bond market in 2013 continued at the high level of the previous year,  
with interest coupons at a historic low. There was excellent investor interest in corporate bonds, partly 
because these continued to offer higher yields than government bonds, for example, and partly because 
of particularly strong demand for the debt of German issuers with diversified global operations. Subordi-
nated debt benefited especially in 2013 following a further significant drop in risk premiums.
The development of risk premiums is apparent from the trend in credit default swaps (CDS). On the 
­derivatives market, the price of these tradable insurance contracts, which are used to hedge against de-
fault of a borrower, show how market participants rate a company’s credit standing. As can be seen from 
Graphic 2.2, CDS volatility was relatively low in 2013. From an overall cost point of view, however, the 
slight drop in risk premiums during the year was more than offset by higher costs resulting from the rise 
in interest rates.
In April 2013, Bayer used this favorable environment to issue a three-year bond with a nominal vol-
ume of €200 million and a floating-rate coupon on attractive terms. In May, we placed a six-year bond 
with a nominal volume of JPY 10 billion and a fixed-rate coupon of 0.594 percent. The financing situa-
tion in 2013 was also marked by the maturing of a €1 billion bond we had issued in 2006 to partially fi-
nance the acquisition of Schering, Berlin, Germany. Redemption took place out of operational liquidity 
without any direct follow-on financing. Further details of outstanding bonds are given in Note [27] to 
the consolidated financial statements.
 
 	Consolidated  
	Financial  
	Statements 
	Note [27]
140
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
120
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
80
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
60
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bayer CDS
iTraxx Europe2
1 source: Bloomberg
2 iTraxx Europe is a CDS index comprising the CDS of 125 companies (including financial institutions) with investment-grade ratings.
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Rates for Five-Year Credit Default Swaps (CDS) 2013
[Graphic 2.2]
in basis points 1
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40
To our Stockholders
Bayer Annual Report 2013
Investor Information
Long-term return on Bayer stock well ahead of the market
A long-term investor who purchased Bayer shares for €10,000 five years ago and reinvested all divi-
dends would have seen the value of the position grow to €28,392 as of December 31, 2013, giving an 
­average annual return of 23.2 percent. 
Dividend increase to €2.10 per share
The Board of Management and the Supervisory Board will propose to the Annual Stockholders’ Meet-
ing that the dividend be increased by €0.20 to €2.10 per share. Thus we once again intend that our 
stockholders should participate in last year’s positive business performance. The resulting payout ratio 
of 37 percent calculated on core earnings per share is within our target corridor of 30 to 40 percent 
(for details on the calculation of core earnings per share, see Chapter 16.3 of the Combined Manage-
ment Report).
The dividend yield calculated on the share price of €101.95 at year end 2013 amounts to 2.1 percent and 
the total dividend payment to €1,737 million.
Dividends Per Share
[Graphic 2.3]
 
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
 
€
€
€
€
€
€
€
€
€
€
2.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.40
1.50
0.55
0.95
1.00
1.35
1.40
1.65
1.90
2.10
Long-Term Returns on Bayer Stock in % p. a. (Dividends Reinvested)
[Table 2.2]
Annual returns
1 year 2013
3 years 2011 – 2013
5 years 2009 – 2013
 
%
%
%
Bayer
+ 45.2
+ 25.9 
+ 23.2
DAX
+ 25.5
+ 11.4 
 + 14.7
DJ EURO STOXX 50
+ 21.5
+ 7.2 
+ 8.5
» TABLE OF CONTENTS

41
To our Stockholders
Bayer Annual Report 2013
Investor Information
A sustainable investment
In 2013 Bayer again qualified for inclusion in major sustainability indices that assess companies on 
the basis of environmental, social and governance (ESG) criteria. Bayer was listed in the FTSE4Good 
Global and Europe and the Dow Jones Sustainability World indices last year. Following Bayer’s first-
time classification as a pharmaceutical company, we were no longer included in the Dow Jones Sus-
tainability Index Europe. Bayer was featured in the Climate Disclosure Leadership Index for the ninth 
consecutive year. In 2013 we continued our dialogue with current and potential investors who base 
their investment decisions on ESG criteria. 
 Online Annex: 2-1
Total Dividend Payment
[Graphic 2.4]
 
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
1,800
 
 
 
 
 
 
 
 
 
 
1,600
 
 
 
 
 
 
 
 
 
 
1,400
 
 
 
 
 
 
 
 
 
 
1,200
 
 
 
 
 
 
 
 
 
 
1,000
 
 
 
 
 
 
 
 
 
 
800
 
 
 
 
 
 
 
 
 
 
600
 
 
 
 
 
 
 
 
 
 
400
 
 
 
 
 
 
 
 
 
 
200
 
 
 
 
 
 
 
 
 
 
0
 
 
 
 
 
 
 
 
 
 
 
402
694
764
1,032
1,070
1,158
1,240
1,364
1,571
1,737
Sustainability Indices Featuring Bayer Stock in 2013
[Graphic 2.4-1]
 
Dow Jones Sustainability Index World 
  
 
 
FTSE4Good Global Index 
  
 
 
 
 
 
 
FTSE4Good Europe Index  
 
Climate Disclosure Leadership Index * 
 
 
 
 
Access to Medicine Index */** 
  
 
*	 The Climate Disclosure Leadership Index and the Access to Medicine Index are not trading indices.
**	not re-assessed in 2013
» TABLE OF CONTENTS

42
To our Stockholders
Bayer Annual Report 2013
Investor Information
International ownership structure
At the end of 2013, approximately 270,000 stockholders were listed in our share register. Bayer has a 
100 percent free float as defined by Deutsche Börse, the operator of the Frankfurt Stock Exchange.
An analysis of our ownership structure carried out in the fourth quarter of 2013 shows the international 
distribution of our capital stock. The highest proportion of our outstanding shares, almost 30 percent, is 
held by investors in the U.S. and Canada. Bayer has a stable ownership structure that has altered only 
marginally in recent years. 
Accolades for capital market dialogue
In 2013 Bayer received several awards for its communications with the capital markets.
We were awarded first place in the IR Magazine Award in the Best Analyst/Investor Meetings category 
for our regular “Meet Management” conferences. We have garnered first place three times in the 
­Thomson Reuters Extel IR Rankings for the best IR work in the Chemicals category. According to a report 
published by the German Investor Relations Association (DIRK) and the German business magazine 
Wirtschaftswoche, Bayer is among the best of the DAX 30 companies in terms of its investor relations 
­activities. Here we gained second place. Bayer’s IR website was judged the world’s best in the health 
care sector in the IR Global Rankings 2013 (MZ-Consult, U.S.A.). At the end of the year we relaunched our 
IR website for stockholders and analysts in light of the growing importance of mobile devices. The new 
responsively designed site automatically adapts to different formats for PCs, laptops and mobile devices.
	 www.investor. 
bayer.com
Ownership Structure by Country
[Graphic 2.5]
Germany 21.9%
U.S.A., Canada 29.2% 
U.K., Ireland 16.9%
France, Spain,
Italy, Portugal 9.6%
Benelux 3.3%
Austria, Switzerland, 
Liechtenstein 3.8%
Denmark, Finland,  
Norway, Sweden 3.8%
Other countries 5.4%
Not covered by survey 6.1%
source: IPREO
» TABLE OF CONTENTS

43
To our Stockholders
Bayer Annual Report 2013
Investor Information
We continued to step up our IR activities in 2013, attending 22 broker conferences, holding 22 road-
shows and participating in several field trips. These activities took place in a total of 25 financial 
­centers. Last year we held “Meet Management” conferences in New York, Leverkusen, and – for the 
first time – London. This conference format enables small groups of investors and analysts to meet 
with members of the management boards of Bayer AG and the subgroups for detailed discussions on 
­Bayer’s corporate and business development. As in previous years, private investors had an opportu-
nity to find out about our company and our mission “Bayer: Science For A Better Life” at a number of 
stockholder forums at which the Investor Relations team was represented.	
» TABLE OF CONTENTS

45
Combined Management Report
Bayer Annual Report 2013
01 
Combined Management Report
of the Bayer Group and Bayer AG as of December 31, 2013
» TABLE OF CONTENTS
 For direct access to a chapter, simply click on its name.
Fundamental Information About the Group
1.	
Bayer at a Glance
46
1.1 
Corporate Profile
46
1.2	
Group Strategy
48
1.3	
Targets and Performance Indicators
49
1.4	
Internal Management System
56
1.5	
Value Creation
57
1.6	
Corporate Environment
58
2.	
Corporate Structure
60
3.	
Strategies of the Subgroups
62
4.	
Economic Environments of the Subgroups
68
5.	
Research, Development, Innovation
70
6.	
Sustainability
84
7.	
Employees
96
8.	
Procurement and Production
108
9.	
Products, Distribution and Markets
116
10.	
Product Stewardship
119
11.	
Safety
128
12.	
Environmental Protection
132
12.1	
Energy Consumption
132
12.2	
Air Emissions
133
12.3	
Use of Water and Emissions into Water
138
12.4	
Waste and Recycling
141
12.5	
Biodiversity
142
12.6	
Environmental Incidents
144
12.7 
International Standards and Certifications
147
13.	
Social Commitment
148
Report on Economic Position
14.
	Overview of Sales, Earnings and
Financial Position
152
15.
	Business Development by Subgroup,
Segment and Region
156
15.1	 HealthCare
156
15.2	 CropScience
162
15.3	 MaterialScience
165
15.4	 Business Development by Region
168
15.5	 Business Development in the  
Emerging Markets
168
16.
	Earnings; Asset and Financial Position
of the Bayer Group
170
16.1	 Earnings Performance of the Bayer Group
170
16.2	 Calculation of EBIT(DA) 
Before Special Items
171
16.3	 Core Earnings Per Share
172
16.4	 Value Management
173
16.5	 Liquidity and Capital Expenditures 
of the Bayer Group
175
16.6	 Asset and Capital Structure 
of the Bayer Group
178
16.7	 Financial Management of the Group
180
17.
	Earnings; Asset and Financial Position
of Bayer AG
181
17.1	 Earnings Performance of Bayer AG
181
17.2	 Asset and Financial Position of Bayer AG
183
Report on Corporate Governance	
18.	
Corporate Governance Report
185
18.1	
Declaration Concerning the 
German Corporate Governance Code
185
18.2	
Governance
186
18.3	
Compliance
191
18.4	
Compensation Report
193
18.4.1	 Compensation of the Board of Management
193
18.4.2	 Disclosures Pursuant to the Recommendations 	
of the German Corporate Governance Code
202
18.4.3	 Compensation of the Supervisory Board
205
18.4.4	 Further Information
207
Events After the End of the Reporting Period
19.	
Events After the End of the Reporting Period
208
Report on Future Perspectives and on Opportunities and Risks
20.	
Future Perspectives
209
20.1	
Economic Outlook
209
20.2	
Forecast for Key Data
211
20.3	
Opportunity and Risk Report
214
20.3.1	 Group-wide Opportunity and 	
Risk Management System
214
20.3.2	 Opportunities and Risks
217
21.	
Takeover-Relevant Information
224

46
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.1 Corporate Profile
Fundamental Information  
About the Group
1. Bayer at a Glance
1.1 Corporate Profile
Bayer is a global enterprise with core competencies in the areas of health care, agriculture and high-
tech polymer materials. 
Bayer AG, Leverkusen, Germany, acts as a strategic management holding company. It defines the values, 
goals and strategies of the entire Group. It is also responsible for resource allocation and managerial 
­appointments. Led by Bayer AG, the HealthCare, CropScience and MaterialScience subgroups inde-
pendently manage their business operations in line with preset objectives.
Bayer HealthCare is one of the leading companies in the area of prescription medicines and consumer 
products. This subgroup researches, develops, manufactures and markets products to improve the 
health of people and animals.
Bayer CropScience is one of the world’s leading research-intensive companies in the agricultural indus-
try, offering a broad range of innovative chemical and biological products for improving plant health, 
along with high-value seeds. It also provides extensive customer service to support modern, sustainable 
agriculture. A further focus is on non-agricultural applications.
Bayer MaterialScience is a renowned supplier of high-tech polymers and develops innovative product 
solutions for a wide variety of everyday uses. Products holding leading positions on the world market 
­account for a large proportion of its sales.
H
i
g
h-
t
e
ch
 p
ol
y
m
er
s
A
g
ri
cu
lt
ur
e
H
e
al
t
h 
c
ar
e
C
r
o
p
S
c
i
e
n
c
e
H
e
a
l
t
h
C
a
r
e
M
a
t
e
r
i
a
l
S
c
i
e
n
c
e
The Bayer Group
[Graphic 3.1.0] 
» TABLE OF CONTENTS COMBINED MANAGEMENT REPORT

47
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.1 Corporate Profile
The holding company and subgroups are supported in their activities by the three service companies 
Bayer Business Services, Bayer Technology Services and Currenta.
Today, the Bayer Group comprises around 290 consolidated companies in 73 countries throughout the 
world. We have corporate locations in close proximity to our customers and markets worldwide, invest 
­locally and offer attractive jobs.
Our Mission
“Bayer: Science For A Better Life”
Bayer is a world-class innovation company. Our scientific successes are intended to help improve 
­people’s lives. At the same time, our innovations form the basis for sustainable and profitable business 
activity. 
Our products are helping to address some of today’s biggest challenges, including global population 
growth, an aging society and the need to make efficient – and, wherever possible, sustainable – use of 
natural resources.
•	 We are improving people’s quality of life by preventing, alleviating or curing diseases. 
•	 We are helping to provide an adequate supply of high-quality food, feed and renewable plant-based 
raw materials.
•	 And our high-tech polymer materials are making significant contributions to factors such as energy 
and resource efficiency in the areas of mobility, construction and home living.
We have laid the foundations for achieving these goals in over more than 150 years of successful busi-
ness activity, and are the only global company to combine expertise in human, animal and plant health 
and in high-tech polymer materials. Our focus on innovation is the key to maintaining or achieving lead-
ership positions in all of our markets. 
The Bayer Group in 2013
[Graphic 3.1.1]
 Sales 
40,157 (39,741) (€ million)
 Employees 
113,200 (110,000)
  R&D expenditures 
3,190 (3,013) (€ million)
	 Bayer AG and no. of fully consolidated companies 
289 (290) 
Total
2012 in parentheses
North America
 9,680 (9,576) (€ million)
 15,200 (15,300) 
 812 (588) (€ million)
 40 (46) 
Latin America /Africa / Middle East
 6,768 (6,684) (€ million)
 16,400 (16,200) 
 51 (41) (€ million)
 44 (45) 
Europe
 15,086 (14,722) (€ million)
 53,600 (52,300) 
 2,153 (2,198) (€ million)
 150 (144) 
Asia / Pacific
 8,623 (8,759) (€ million)
 28,000 (26,200) 
 174 (186) (€ million)
 55 (55) 
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48
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.2 Group Strategy
Our Values
A central role is played by our LIFE values, which guide us in fulfilling our mission “Bayer: Science For A 
Better Life.” LIFE stands for Leadership, Integrity, Flexibility and Efficiency.
These values apply to everyone at Bayer and are firmly integrated into our global performance manage-
ment system for managerial employees. Our value culture ensures a common identity within the enter-
prise across national boundaries, management hierarchies and cultural differences. 
1.2 Group Strategy
In line with our mission “Bayer: Science For A Better Life,” we aim to improve people’s quality of life. 
For this endeavor, we focus on our core competency of developing and successfully commercializing 
­innovative products and solutions based on scientific knowledge. 
	 Our objective: profitable growth
Our corporate strategy is aligned toward profitable growth that will sustainably increase corporate value. 
We place special importance on developing new products and solutions that create significant value for 
customers and patients, and on serving the Emerging Markets, particularly those of Asia and Latin 
America. In this way we are giving more and more customers access to our products and establishing a 
solid basis for further growth.
	 Our success is based on innovation
Bayer is a world-class innovation company that is steadily opening up new, attractive market segments 
in fast-growing and research-driven areas. Apart from the Life Sciences – the health care and agriculture 
businesses –, a further focus of our activities is on high-tech polymer materials. Our success is based on 
the development of new molecules, technologies, processes and business models. In the long term we 
expect additional growth impetus to come from interdisciplinary research at the interfaces between 
­human, animal and plant health. We are convinced that such research can leverage significant synergies. 
We plan to continue playing leading roles in our business areas and to reinforce the strong positions we 
already hold. A strategic focus of our investment is on expansion in the Life Sciences. We aim to drive 
organic growth in these businesses through investment in research and development and through tar-
geted acquisitions and collaborations. At MaterialScience we intend to defend the leading positions we 
hold in our market segments. We are also continuing to adjust business processes to changing market 
conditions in order to improve profitability. We are investing heavily to deliver organic growth in all  
areas of activity. Bayer plans to spend a total of some €18 billion for research and development and for 
property, plant and equipment between 2014 and 2016.
	 Acting sustainably
Sustainable business practices are essential to the Group’s future viability. We therefore endeavor to 
­balance our economic objectives with social and ecological requirements in the development, manufac-
turing and marketing of our products. We aim to gain broad social acceptance for our activities through 
responsible business practices and by taking into account the expectations of relevant stakeholders. 
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49
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.3 Targets and Performance Indicators
	 Our employees are our most crucial resource
Motivated employees are especially important for the successful development of our business. Bayer 
­embraces a performance- and development-oriented corporate culture, coupled with a pronounced sense of 
social responsibility. We encourage human and cultural diversity within the company, placing special impor-
tance on pleasant work environments, flexible working conditions and excellent vocational and advanced 
training opportunities. We offer attractive career prospects and aim to continue attracting the most talented 
people to support our company’s successful and sustainable development. 
1.3 Targets and Performance Indicators
To consistently implement our strategy, we have set ambitious economic, social and ecological targets 
and measure their attainment in terms of selected performance indicators. 
//  Profitable Growth
Approx. 5% increase in Group sales (Fx & portfolio adj.) in 2014 to approx. €41 billion – €42 billion 
(expected negative currency effects of approx. 2%)
Low- to mid-single-digit percentage increase in EBITDA before special items in 2014 
(expected negative currency effects of approx. 5%, approx. minus €450 million)
Mid-single-digit percentage increase in core earnings per share in 2014 
(expected negative currency effects of approx. 6%)
//  Innovation
Group: Increase in R&D investment for the Bayer Group to approx. €3.5 billion in 2014
HealthCare: Transition of more than 10 new molecular entities (nmes) into development in 2014
CropScience: Transfer of at least six new molecular entities (nmes) or traits into confirmatory technical 
proof-of-concept field studies in 2014
MaterialScience: Improvement of production process technology to achieve better energy efficiency
//  Sustainability
Supplier management
Evaluation of all strategic suppliers by 2017 and of all potential high-risk suppliers with significant  
Bayer spend by 2020, and development and establishment of a new sustainability standard for our supply 
base by 2020
Resource efficiency
Improvement in Group-wide energy efficiency of 10% and reduction in Group-wide specific greenhouse gas 
emissions of 20% by 2020 (based on 2012), and establishment of a water management system at all sites in 
water-scarce areas by 2017
Safety
Reduction in occupational safety incidents of 35% and in transport incidents and incidents relevant to process 
and plant safety of 30% (all by 2020 based on 2012)
Product stewardship
Conclusion of assessment of hazard potential for substances used in quantities exceeding one metric ton per 
annum by 2020
Compliance
Conducting of precautionary risk assessments in all three subgroups by 2015 and annual compliance  
training for all Bayer managers from 2015
//  Employees
Continuous improvement in employee engagement; increase in the proportion of women in senior 
­management to 30% and in the proportion of managers from outside the European Union, the United States 
or ­Canada to 25% by 2015
Bayer Business Targets
[Graphic 3.1.2]
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50
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.3 Targets and Performance Indicators
 	See Chapter 20
The new non-financial targets replace the existing set of sustainability targets for 2015 and are ex-
plained in detail in the online annex, which also includes definitions and KPIs. The forecast for further 
key financial data is given in Chapter 20 “Future Perspectives.”
 Online annex: 3-1.3-1
New non-financial targets
With the first integrated Annual Report, we have adopted a new program of non-financial targets 
based on the Group strategy. This enables us to highlight the challenges we see in our core business 
within the context of sustainable development and identify the continuous improvements we are  
endeavoring to make throughout the Group. This is achieved through clearly defined targets and  
indicators along the value chain. These are used to monitor our progress in Innovation, Supplier 
Management, Resource Efficiency, Safety, Product Stewardship, Compliance and Employees.
The targets are largely based on the old “Targets 2015” program. We have also conducted our own  
materiality analyses on the basis of stakeholder expectations and benchmarks. Table 3.1.0-1 shows  
all the new target categories and definitions in detail.
PREVIOUS Targets FOR 2015
In 2010 the Bayer Group set ambitious non-financial targets with “Targets 2015.” We have  
reported on annual progress in achieving the targets as part of our sustainability communications. 
At the end of 2013 we met the targets in the categories Product Stewardship and Process and Plant 
Safety in full. We have defined new targets for both categories. Our previous Research & Develop-
ment target is being continued with an absolute value. In the categories Compliance, ­Supplier Man-
agement, Diversity, Safety and Climate Protection, we have – for the most part – made good prog-
ress over the last few years. The definitions of targets for these categories are being continued with 
a partial change of focus in the new target program. However, despite good reduction results, our 
emission reduction targets for volatile organic compounds (VOC) and ozone depleting substances 
(ODS) will no longer be part of the new program as, due to reasons of materiality, we will be focus-
ing on the areas of Water and Energy in the future. This is the case for the Waste category as well. 
We will still be continuing to report on the indicators for waste, ODS and VOC. Spending and proj-
ects in the area Social Commitment also remain part of our reporting.
In Table 3.1.0-2, we give a detailed overview of the completed “Targets 2015” program.
innovation
 
 
 
Group 
Increase in R&D investment  
 
€3.5 billion 
 
 
2014 
 
 
R&D investments include expenditures for  
research and development in the HealthCare, 
CropScience and MaterialScience subgroups  
and at Bayer Technology Services.
HealthCare 
Transition of more than 10 new 
molecular entities (NMEs) into 
development 
> 10 new molecular 
entities 
 
2014 
 
 
A new molecular entity is a chemical or biological 
substance that has not yet been developed at Bayer 
for a specific indication. 
CropScience 
Transfer of at least six new 
­molecular entities (NMEs) or 
traits into confirmatory­ 
­technical proof-of-concept  
field ­studies
≥ 6 new molecular 
entities or plant 
traits 
 
 
2014 
 
 
 
 
A new molecular entity is a chemical or biological 
substance that has not yet been developed at Bayer 
for a specific indication. A new plant trait is a spe-
cific characteristic that has not yet been available 
or offered at Bayer for the crop plant in question. 
MaterialScience 
Improvement of production 
process technology to achieve 
better energy efficiency
  
 
 
  
 
 
This innovation target supports the achievement of 
the resource efficiency targets.   
 
New Non-Financial Target Program
[Table 3.1.0-1]
Definition of target
Target value
Target year
Explanations of target
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51
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.3 Targets and Performance Indicators
New Non-Financial Target Program
[Table 3.1.0-1]
Definition of target
Target value
Target year
Explanations of target
Supplier Management
 
 
 
Increase in evaluation coverage  
of strategic suppliers 
 
 
100% 
Reference year: 
2013* 
 
2017 
 
 
 
Strategic suppliers for Bayer are those with a 
­major influence on business in terms of procure-
ment spend, sales and long-term collaboration 
prospects (3 – 5 years). Sustainability performance 
is evaluated in assessments and audits.
Increase in evaluation coverage  
of potential high-risk suppliers 
with significant Bayer spend 
100% 
Reference year: 
2013*
2020 
 
Risk definition is based on a country- and 
­material-based approach. We define significant 
procurement spend as > €1 million p.a.
Development and establish-
ment of a new sustainability 
standard for our supply base 
 
 
 
 
  
 
 
 
 
 
 
2020 
 
 
 
 
 
 
The sustainability standard for our suppliers is to 
be driven forward in tandem with relevant industry 
initiatives. We are currently working with the 
­“Together for Sustainability” initiative and the 
Pharmaceutical Supply Chain Initiative. Among 
other objectives, the goal is to standardize and 
share sustainability assessments of suppliers in  
the same industry.
Resource Efficiency
 
 
 
Improvement in Group-wide  
energy efficiency 
 
 
+ 10%  
Reference year: 
2012  
Reference value: 
3.50 MWh / t
2020 
 
 
 
Energy efficiency at Bayer is defined as the 
­quotient of energy consumption in MWh per t 
­manufactured sales volume. 
 
Reduction in Group-wide spe-
cific greenhouse gas emissions 
 
 
– 20% 
Reference year: 
2012 
Reference value: 
0.98 t CO2 / t
2020 
 
 
 
Specific greenhouse gas emissions: measured in 
CO2 equivalents per t manufactured sales volume 
 
 
Establishment of a water  
management system at all sites 
in water-scarce areas 
 
100% 
 
 
 
2017 
 
 
 
We define water management as part of environ-
mental management systems as specified in ISO 
14001, for example. We use the WBCSD Global 
Water Tool™ to define water-scarce areas and dif-
ferentiate activity levels and local targets.
Safety
 
 
 
Reduction in occupational 
­safety incident rate among the 
Bayer workforce 
 
 
 
 
 
– 35% 
Reference year: 
2012  
Reference value: 
RIR of 0.49 
 
 
 
2020 
 
 
 
 
 
 
 
The basis is the number of injuries with and with-
out lost workdays per 200,000 working hours, 
summarized as RIR (Recordable Incident Rate).  
Until the end of 2015, we will continue reporting 
on our success in achieving our LTRIR (Lost Time 
Recordable Incident Rate) target, which covers 
only occupational injuries with lost workdays per 
200,000 working hours. The 2015 target is an 
LTRIR of 0.21.
Reduction in transport 
­incidents 
 
– 30% 
Reference year: 
2012  
Reference value: 6
2020 
 
 
Transport incidents relate to both our own  
transports and those we commission and pay third 
parties to perform on our behalf. 
Reduction in process and plant 
­safety incidents 
 
 
 
 
– 30% 
Reference year: 
2012 
Reference value: 
0.38 
 
2020 
 
 
 
 
 
The key indicator is the number of incidents in 
which chemicals leak from their primary container, 
such as pipelines, pumps, tanks or drums, desig-
nated as LoPC (Loss of Primary Containment). We 
use the associated rate (LoPC Incident Rate) to de-
termine the number of LoPC incidents per 200,000 
working hours in areas relevant to plant safety.
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52
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.3 Targets and Performance Indicators
Product Stewardship
 
 
 
Completion of assessment of  
hazard potential for substances 
used in quantities exceeding 
one metric ton p.a. 
 
 
 
 
 
> 99%  
Reference year: 
2013* 
 
 
 
 
 
 
2020 
 
 
 
 
 
 
 
 
This globally harmonized Bayer standard also 
­covers assessment of such substances that are not 
subject to the REACH Regulation (No. 1907 / 2006).  
If no relevant datasets are generated within the 
scope of REACH, substance information and the 
ability to provide data on key substance properties 
are to be determined to ensure and document 
­responsible handling of the substances (including 
substance characteristics, purity, intended use, 
toxicological data).
Compliance
 
 
 
Conducting of precautionary 
risk assessments in all three 
subgroups
100% 
 
2015 
 
Risk assessments are based on the integrated  
compliance management method developed by 
Ernst & Young.
From 2015 compliance training 
for all Bayer managerial staff 
>  99%  
 
annually 
 
Managers will participate in specific training 
courses depending on the risk area. 
Employees
 
 
 
Continuous increase in 
­employee engagement  
(determined using an employee 
survey) 
Current reference 
year: 2012 
Current reference 
value: 85% 
every two 
years 
 
 
We measure employee engagement in line with the 
Towers Watson engagement system. Engagement 
looks at how strongly an employee identifies 
with / feels attached to his / her company by support-
ing corporate values and objectives, for example.
Increase in the proportion of 
women in senior management 
 
 
30% 
Reference year: 
2010 
Reference value: 
21%
2015 
 
 
 
Senior managers are managers in the five highest 
management grade levels. 
 
 
Increase in the proportion of 
­senior managers who do not 
come from the E.U., the United 
States or Canada
25% 
Reference year: 
2013* 
2015 
 
 
Senior managers are managers in the five highest 
management grade levels. 
 
* reference value will be specified in 2014; calculation of values for 2013 not yet complete
New Non-Financial Target Program
[Table 3.1.0-1 (continued)]
Definition of target
Target value
Target year
Explanations of target
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53
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.3 Targets and Performance Indicators
 
Management & Corporate 
Governance
Compliance
Extend compliance 
­training to 100% of all 
Bayer managers 
61% of all Bayer 
managers 
90% of all Bayer 
managers 
From 2012 focus 
on new Bayer 
­managers; 
> 90% of all 
­B­ayer managers 
trained 
Continued focus 
on new Bayer 
managers;  
> 90% of all 
­Bayer managers 
trained 
From 2012 the focus was  
on new Bayer managers to 
­continually increase the 
­coverage rate and come closer 
to the ­target.   
We are extending the  
previous target as part of the 
new ­target program.
Supplier Management
Inform all suppliers with 
purchase-order-relevant 
volumes about Bayer 
­Supplier Code of Conduct 
Launch of the 
­Supplier Code of 
Conduct at the 
end of 2009 – 
gradual integra-
tion into all elec-
tronic ordering 
systems 
As a fixed ele-
ment of our sup-
plier selection 
and evaluation 
process, the 
­Supplier Code of 
Conduct is 
­legally binding 
and integrated 
into all electronic 
ordering systems 
and contracts 
throughout the 
Group.
As a fixed ele-
ment of our sup-
plier selection 
and evaluation 
process, the 
­Supplier Code of 
Conduct is 
­legally binding 
and integrated 
into all electronic 
ordering systems 
and contracts 
throughout the 
Group.
As a fixed ele-
ment of our sup-
plier selection 
and evaluation 
process, the 
­Supplier Code of 
Conduct is 
­legally binding 
and integrated 
into all electronic 
ordering systems 
and contracts 
throughout the 
Group.
Target achieved. The Bayer 
Supplier Code of Conduct is 
an established part of the sup-
plier selection and evaluation 
process and is contractually 
integrated into electronic 
­ordering systems and agree-
ments throughout the Group. 
Assess the sustainability 
performance of suppliers 
representing ≥ 75% of the 
total procurement volume 
and ≥ 75% of the procure-
ment volume from risk 
­areas 
Approx. 50% 
­coverage of the 
procurement vol-
ume in risk coun-
tries, proportion 
of total procure-
ment volume not 
yet assessed 
completely at this 
stage 
25% of the total 
procurement 
­volume and 56% 
of the procure-
ment volume 
from risk areas 
covered 
Focus on process 
quality and effi-
ciency. Nonethe-
less, approx. 
25% of the total 
procurement vol-
ume and a good 
50% of the pro-
curement volume 
from risk areas 
are covered. 
34% of the total 
procurement vol-
ume and 51% of 
the procurement 
volume from  
risk areas are 
­covered. 
Checking of suppliers’ sus-
tainability performance has 
been expanded considerably 
in the last few years. The 
­“Together for Sustainability” 
initiative and the Pharmaceu-
tical Supply Chain Initiative 
have contributed to this. The 
lower coverage in risk areas in 
2013 compared to previous 
years is explained by the in-
creased procurement from 
non-OECD countries, 
­resulting in a changed ratio in 
the database. 
These targets are being incor-
porated into the new target 
program in a slightly modified 
form, and the target achieve-
ment level increased. 
Annually audit the 
­sustainability performance 
of at least 10% of the 
­suppliers from risk areas  
or at least 15 suppliers
Initial pilot audits 
 15 suppliers 
 17 suppliers 
41 suppliers 
Target achieved. The number 
of audits has risen continuous-
ly in the last few years. 
Targets 2015 *: Development of Targets since the Start of the Program and Final Documentation
[Table 3.1.0-2]
2010 (Start)
2011
2012
2013
Final  
documentation
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54
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.3 Targets and Performance Indicators
 
 
 
 
 
Innovation & Product  
Stewardship
  
  
 
  
  
 
  
 
Research & Development
Maintain or increase  
R&D spending in relation 
to sales 
 
 
€3 billion (8.7%) 
 
 
 
 
€2.9 billion 
(8.0%) 
 
 
 
€3.0 billion 
(7.6%) 
 
 
 
€3.2 billion 
(7.9%) 
 
 
 
The level of R&D spending 
was maintained at around the 
same level in the evaluation 
period. This target is being 
continued with an absolute 
target value.
Product Stewardship
Roll out Global Product 
Strategy (GPS) in another 
10 countries with different 
national languages 
Implementation 
started 
 
 
In five countries 
in the relevant 
national  
languages 
In 10 countries in 
three other lan-
guages (via new 
“Product Safety 
First” website)
Target already 
achieved in 2012 
 
 
Target achieved. GPS is avail-
able via the “Product Safety 
First” website in the E.U.  
and 14 other countries and in 
­seven languages.
Employees
 
 
 
 
 
Diversity
Increase the proportion of 
women in senior manage-
ment to approaching 30% 
 
21% 
 
 
 
22% 
 
 
 
23% 
 
 
 
25% 
 
 
 
Positive upward trend in the 
proportion of women in senior 
management. The target will 
remain part of the new target 
program until 2015. 
Occupational Safety
Reduce the number  
of ­occupational injuries 
with lost workdays to  
≤ 0.21 ­LTRIR**
0.34 
 
 
0.31 
 
 
0.27 
 
 
0.26 
 
 
The target has been raised 
once again and remains part 
of the new target program. 
Targets 2015 *: Development of Targets since the Start of the Program and Final Documentation
[Table 3.1.0-2 (continued)]
 
2010 (Start)
 
2011
 
2012
 
2013
Final  
documentation
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55
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.3 Targets and Performance Indicators
 
 
 
 
 
Ecology
 
 
 
 
 
Climate Protection
Reduce specific green-
house gas emissions*** in 
the Group by 35% (direct 
and indirect emissions in 
relation to manufactured 
sales volume in t) between 
2005 and 2020; target 
based on figures defined 
in 2005: 0.79 t CO2 equiv-
alents per t manufactured 
sales volume
1.09 t CO2e per t 
manufactured  
sales volume 
 
 
 
 
 
 
 
0.95 t CO2e per t 
manufactured  
sales volume 
 
 
 
 
 
 
 
0.98 t CO2e per t 
manufactured  
sales volume 
 
 
 
 
 
 
 
1.00 t CO2e per t 
manufactured  
sales volume 
 
 
 
 
 
 
 
In 2013 greenhouse gas emis-
sions Group-wide remained at 
around the same level as in 
the previous years at approx.  
one t CO2e per t manufactured 
sales volume. 
We are incorporating the 
­reduction target into the new 
target program.  
 
Emissions
Reduce other relevant 
emissions: 
ozone depleting  
substances (ODS) – 70%, 
ODS target based on 
2010: 6.2 t; 
volatile organic com-
pounds (VOC) – 50%; VOC 
target based on 2010: 
0.1218 kg / t manufactured 
sales volume
ODS: 20.77 t; 
 
VOC: 0.2436 kg / t 
 
 
 
 
 
 
 
ODS: 16.32 t; 
 
VOC: 0.2457 kg / t 
 
 
 
 
 
 
 
ODS: 16.28 t; 
 
VOC: 0.2316 kg / t 
 
 
 
 
 
 
 
ODS: 15.65 t; 
 
VOC: 0.2047 kg / t 
 
 
 
 
 
 
 
Reductions were achieved in 
both categories in the last few 
reporting years. Since 2010 
ODS have fallen by almost 
25% and VOC by around 
16%. The ODS / VOC targets 
are not being continued, but 
the relevant figures will 
­continue to be reported. 
 
Waste
Reduce specific  
hazardous waste from pro-
duction to 2.5% in  
relation to manufactured 
sales volume 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.12% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.23% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.54% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.77% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This target is not being 
­achieved. Due to changes in 
process steps, mainly in the 
Crop­Science subgroup, additi-
onal “hazardous” production 
waste is being generated, for 
example during synthesis of 
active ­ingredients in the form 
of by-­products that do not al-
low further processing or use.  
Reducing hazardous produc-
tion waste remains a key fac-
tor for our product and pro-
cess development. We will be 
reporting further on the rele-
vant quantities. Because of a 
change in essential relevance, 
the previous target will no 
­longer be part of the new 
­target program.
Targets 2015 *: Development of Targets since the Start of the Program and Final Documentation
[Table 3.1.0-2 (continued)]
 
2010 (Start)
 
2011
 
2012
 
2013
Final  
documentation
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56
Combined Management Report
Bayer Annual Report 2013
1. Bayer at a Glance
1.4. Internal Management System
 
 
 
 
 
Process and Plant Safety
Implement the Bayer-wide 
initiative to increase pro-
cess and plant safety; sys-
tematic process and plant 
safety training for approx. 
26,000 employees world-
wide by the end of 2012 
 
 
 
 
 
 
 
 
 
Start of imple-
mentation of ini-
tiative; staging of 
the first Process 
and Plant Safety 
Symposium with 
100 Bayer  
experts from  
14 countries 
 
 
 
 
 
 
 
Pilot training pro-
grams at the sites 
in Wuppertal-­
Elberfeld, Germa-
ny (HealthCare), 
Hürth-Knapsack, 
Germany (Crop­
Science) and Map 
Ta Phut, Thailand 
(Material-
Science); 3,700 
employees 
trained; training 
materials devel-
oped in around  
20 languages 
26,000 employ-
ees trained; 
­further develop-
ment of the 
Group Regulation 
“Process and 
Plant Safety” 
 
 
 
 
 
 
 
 
 
Further develop-
ment of teaching 
materials for the 
long-term contin-
uation of the 
training pro-
grams using both 
traditional and 
web-­based train-
ing; anchoring of 
the training pro-
gram in the HSEQ 
management 
­systems of the 
subgroups 
 
A large number of measures 
(training courses, symposia, 
Group regulations, standard-
ized risk assessments etc.) 
raised awareness of process 
and plant safety worldwide. 
The target has been achieved. 
The initiative is being contin-
ued and remains part of our 
reporting on safety. 
 
 
 
 
 
 
Social Commitment
 
 
 
 
 
Focus our global commit-
ment further on scientific 
education, fostering 
­talent, cutting-edge 
­research, health care and, 
in Germany, additionally 
on recreational, youth and 
disabled sports 
 
 
 
 
 
 
 
Analysis of global 
commitment in 
terms of our core 
business areas; 
review of funding 
programs to 
check support of 
business strategy 
 
 
 
 
 
 
 
Further interna-
tionalization and 
alignment of 
scholarship 
awards to the 
company’s mis-
sion; allocation of 
funds on an even 
greater multina-
tional ­basis, fo-
cusing on core 
areas, and spon-
soring programs 
that consistently 
support the busi-
ness ­strategy
In the selection  
of projects, the 
focus was on 
those­ countries in 
which Bayer is 
­represented and 
on issues that are 
of relevance to  
our subgroups  
and their areas of 
­business. 
 
 
 
 
Further concen-
tration on coun-
tries in which 
Bayer is repre-
sented and on 
areas that are of 
relevance to the 
Group’s business 
strategy 
 
 
 
 
 
 
In the selection of projects, 
the focus was continuously on 
­those countries in which 
­Bayer is represented and on 
issues that are of relevance to 
our ­subgroups and their  
areas of business. This target 
is not part of the new target 
program.  
We will be reporting further 
on sponsorship spending and 
fields. 
 
 
 
*			unless indicated otherwise
**		LTRIR = Lost Time Recordable Incident Rate
***	Specific Group emissions are calculated from the total volume of direct and indirect emissions of the subgroups, including from the vehicle fleet, divided by the 
­manufactured sales volume of the three subgroups. Quantities attributable to the supply of energy to external companies are deducted from the direct and indirect 
emissions. At MaterialScience the by-products sodium hydroxide solution and hydrochloric acid generated during production are not included in the production 
volume as they will occur in much smaller amounts in the future, thanks to measures aimed at enhancing energy efficiency. Trade products are also not included.
Targets 2015 *: Development of Targets since the Start of the Program and Final Documentation
[Table 3.1.0-2 (continued)]
 
2010 (Start)
 
2011
 
2012
 
2013
Final  
documentation
1.4 Internal Management System
The economic planning and steering for the business units is carried out within a framework laid down by 
the Board of Management that is refined during the strategic planning process. Operational planning then 
translates this framework into specific, measurable targets. Continuous monitoring of business develop-
ments complements the planning and management process, and key management and performance indi-
cators are regularly updated. This process also involves tracking the implementation of the strategic ob-
jectives and adopting countermeasures in the event of deviations from the budget.
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1. Bayer at a Glance
1.5 Value Creation
 	See Chapter 16.4
 	See Chapter 16.2
Key indicators
One of the prime objectives of the Bayer Group is to steadily increase enterprise value. We use the fol-
lowing steering parameters to plan, steer and monitor the development of our business: 
The key performance indicators at the strategic level are cash value added (CVA), which is a value-based 
steering parameter, and cash flow return on investment (CFROI). These indicators support management 
in its decision-making, especially in the areas of strategic portfolio optimization and the allocation of 
­resources for acquisitions and capital expenditures. (See Chapter 16.4 “Value Management” for further 
details.)
The principal economic steering parameters within the Bayer Group at the operational level are sales 
and earnings figures. With regard to earnings, special attention is paid to EBITDA (earnings before finan-
cial result, taxes, depreciation and amortization) before special items. The EBITDA margin before special 
items, which is the ratio of EBITDA before special items to sales, serves as a relative indicator for the in-
ternal and external comparison of operational earning power. (See Chapter 16.2 “Calculation of EBIT(DA) 
Before Special Items” for further details.) 
Targets and performance indicators are defined and established in areas such as supplier management, 
safety and product stewardship to align the Group toward sustainability. Working closely with the sub-
groups, Bayer AG has implemented management systems to steer the Group’s sustainable development. 
1.5 Value Creation
The value added statement shows Bayer’s contribution to public and private incomes and is a measure 
of the value the company’s business activities create for its stakeholders. We define value added as the 
company’s total operating performance in the previous fiscal year less the costs of procured and con-
sumed goods and services, depreciation and amortization.
The total operating performance of the Bayer Group in 2013 was €41.4 billion. Value added increased by 
9% to €14.5 billion. Of the value added, €9.4 billion (64%) was distributed to employees, €1.7 billion 
(12%) to stockholders, €0.7 billion (5%) to lenders and €1.3 billion (9%) to governments. The remain-
der was allocated to reserves.
€9.4 billion (64%) 
Employees
€1.7 billion (12%)	
 
Stockholders*  
€0.7 billion (5%)	
 
Lenders
€1.3 billion (9%)	
 
Taxes
€1.4 billion (10%)	
 
Reserves /Other
€41.4 billion
Total operating 
performance**
€14.5 billion
Value added
€24.0 billion 
Material costs / 
Other expenses
€2.9 billion 
Depreciation, 
amortization,  
impairments
*		Bayer AG dividend proposal for 2013
**	total operating performance = sales + other operating income + financial income / equity-method income (loss)
Bayer Group Value Added 
[Graphic 3.1.3]
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1. Bayer at a Glance  
1.6 Corporate Environment
 	See Chapter 4
In addition to direct cash flows, the company creates value for its stakeholders in various ways, focus-
ing on innovative products and solutions that add value to our core businesses. We operate production 
sites throughout the world, invest locally in research and development, work with international and 
­local suppliers and contribute to the economic development of our target markets. As an employer, we 
provide jobs in industrialized, emerging and developing economies and create purchasing power 
through the salaries we pay. We also support public infrastructure through regional taxes. 
1.6 Corporate Environment
Bayer’s business activities are impacted by economic and social conditions. At the same time, Bayer 
contributes to shaping these conditions. 
Economic Environment
Global economic growth in 2013 was at the previous year’s level. The crisis in a number of European 
countries continued to hamper development, especially as a result of ongoing national budget consolida-
tion and high unemployment. However, the trend was positive – over the course of the year, the Euro­
pean economy grew slightly again after several quarters of recession. Economic output continued to in-
crease in the United States, albeit at a slower pace than in the previous year. The biggest contribution to 
global growth again came from the emerging markets. The global economy also received a positive stim-
ulus from the highly expansionary monetary policy that continued in the industrialized countries. 
See Chapter 4 for more information on the business environments of our subgroups. 
Economic Environment
[Table 3.1.1]
 
Growth * in 2012
Growth * in 2013
World
+ 2.6%
+ 2.5%
European Union
– 0.3%**
+ 0.1% 
of which Germany
+ 0.7%
+ 0.4%
United States
+ 2.8%**
+ 1.9%
Emerging markets ***
+ 4.8%**
+ 4.7%
*	
real GDP growth, source: Global Insight; source for Germany: Federal Statistical Office
**	 revised 
***	including about 50 countries defined by Global Insight as emerging markets in line with the World Bank  
as of February 2014
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1. Bayer at a Glance 
1.6 Corporate Environment
Social environment
As a commercial enterprise, Bayer is part of society, and the company’s business activity is therefore close-
ly linked to the social environment. The influence of stakeholders on our business activity has steadily in-
creased in recent years. Their expectations regarding sustainable development affect public acceptance of 
the company and thus our commercial success. We take the wide-ranging requirements of our stakehold-
ers seriously and consider them wherever possible in our business activities. Evaluating these expectations 
and requirements provides significant impetus for the continued development of our activities, our risk 
management and our reporting. At the same time, open dialogue with our stakeholders gives us an oppor-
tunity to demonstrate the value that our products and services hold for society. This is of growing impor-
tance for the success of our business model. 
Read more about Bayer’s commitment to its stakeholders in Chapter 6 “Sustainability.”
 	See Chapter 6
Financial market  
participants
Stockholders
Banks
Insurance companies
Rating agencies
Stakeholder Dialogue at Bayer: Our Most Important Interest Groups
[Graphic 3.1.4]
Social interest 
groups 
Public
NGOs
Local community
Competitors
Regulators
Lawmakers
Politicians
Authorities
Partners
Suppliers
Customers
Employees
Associations
Universities /Schools
bayer
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2. Corporate Structure
2. Corporate Structure
Bayer AG, headquartered in Leverkusen, Germany, is the strategic management holding company  
for the Bayer Group. Business operations are conducted by the HealthCare, CropScience and Material‑­
Science subgroups, supported by our three service companies.
The globally operating HealthCare subgroup is divided into two reporting segments: Pharmaceuticals and 
Consumer Health. The Pharmaceuticals segment focuses on prescription products, especially for women’s 
healthcare and cardiology and also on specialty therapeutics in the fields of oncology, hematology and 
ophthalmology. Our Consumer Health segment includes the Consumer Care, Medical Care and Animal 
Health divisions. The main focus of the Consumer Care Division is on non-prescription medicines, dietary 
supplements and dermatology products. The Medical Care Division comprises the Diabetes Care business 
unit, which markets blood glucose monitoring systems, and the Radiology & Interventional business unit, 
which offers contrast-enhanced diagnostic imaging equipment along with the necessary contrast agents, 
as well as mechanical systems for treating constricted or blocked blood vessels. The products of the Ani-
mal Health Division are destined for use in farm and companion animals.
CropScience has businesses in seeds, crop protection and non-agricultural pest control. It is organized 
into two operating segments: Crop Protection / Seeds and Environmental Science. Crop Protection / Seeds 
markets a portfolio of high-value seeds and traits along with chemical and biological pest management 
solutions, at the same time providing extensive customer service to the agriculture industry. Environ-
mental Science focuses on non-agricultural applications, with a broad portfolio of pest control products 
and services for areas ranging from the home and garden sector to forestry.
MaterialScience develops, manufactures and markets high-tech polymer materials including polyure-
thane raw materials, polycarbonates, coating and adhesive raw materials and functional films. This sub-
group also manufactures and markets selected inorganic basic chemicals. MaterialScience is organized 
into the Polyurethanes, Polycarbonates, and Coatings, Adhesives, Specialties business units, and the 
­Industrial Operations area.
Bayer Group Structure
[Graphic 3.2.1]
bayer
Corporate Center
CropScience
Crop Protection / Seeds
Environmental Science
Consumer 
Health
Pharma-
ceuticals
HealthCare
Consumer 
Care
Medical 
Care
Animal 
Health
MaterialScience
Polyurethanes
Polycarbonates
Coatings, Adhesives, Specialties
Industrial Operations
Business 
Services
Technology 
Services
Currenta
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2. Corporate Structure
Our subgroups are supported by the Business Services, Technology Services and Currenta service compa-
nies, which are reported in the reconciliation under “All Other Segments.” The reconciliation also includes 
the Corporate Center and consolidation effects.
2012 in parentheses
Share of Sales by Segment 2013
[Graphic 3.2.2]
47% (47%)
HealthCare
Pharmaceuticals 28% (27%)
Consumer Health 19% (20%)
22% (21%)
CropScience
3%(3 %)
Reconciliation 
28% (29%)
MaterialScience
€40.1 billion
(€39.7 billion)
Key Data by Subgroup and Segment
[Table 3.2.1]
Sales
EBIT
EBITDA before special items *
Full Year 
2012
Full Year 
2013
Full Year 
2012
Full Year 
2013
Full Year 
2012
Full Year 
2013
 
€ million
€ million
€ million
€ million
€ million
€ million
HealthCare
18,604
18,924
2,205
3,260
5,119
5,334
Pharmaceuticals
10,798
11,188
1,104
2,031
3,232
3,490
Consumer Health
7,806
7,736
1,101
1,229
1,887
1,844
CropScience
8,383
8,819
1,556
1,729
2,025
2,248
MaterialScience
11,491
11,238
581
435
1,263
1,072
Reconciliation
1,263
1,176
(414)
(490)
(127)
(253)
Group
39,741
40,157
3,928
4,934
8,280
8,401
2012 figures restated
*	For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”
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3. Strategies of the Subgroups
3. Strategies of the Subgroups
The subgroups’ strategies are outlined below (for the Bayer Group strategy, see Chapter 1.2). 
HealthCare 
The health care sector worldwide is in a state of flux driven by the rise in life expectancy, growing 
­demand for health care products particularly in the emerging markets, greater patient and consumer in-
fluence on health-related decisions, and increasing insistence that the health care industry demonstrate 
the value added by new therapies. In addition, health systems everywhere need to find ways to curb ris-
ing costs while safeguarding and improving health care quality and access.
Our strategy in this environment is aimed at achieving above-average, profitable and sustainable  
growth. To this end, our focus is on innovation and on further strengthening our position in the Emerg-
ing Markets.
In our largest segment in terms of sales – Pharmaceuticals – we aim to become a leader in cardiovascu-
lar health and defend our market position in women’s healthcare. In the area of specialty therapeutics, 
we aim to strengthen or defend our respective market positions. To achieve our growth targets, we are 
focusing particularly on Xarelto™, Eylea™, Stivarga™, Xofigo™ and riociguat (approved in the United 
States and Japan under the trademark Adempas™), whose market introduction is continuing in addition-
al countries. We plan to steadily expand the indications for these medicines through comprehensive 
study programs and make them available to additional patient groups.
We intend to step up our investment in research and development. First, for example, we plan to drive 
forward the development of five drug candidates in cardiology, oncology and gynecology. We are also 
conducting research in the therapeutic area of hematology. Complementing this work is common mech-
anism research in areas such as ophthalmology and inflammation. 
In addition, we are selectively expanding and supplementing our product portfolio through licensing 
agreements and acquisitions. In June 2013, we acquired the U.S. company Conceptus, Inc., whose prod-
uct Essure™ rounds out our contraception portfolio with the only approved non-surgical permanent  
birth control method.
The focus on certain therapeutic areas is supplemented by tailored measures in key markets such as the 
United States, Japan, Germany, Brazil and China.
We are developing concepts to facilitate access to our products, especially in developing and emerging 
countries, as part of our “Access to Medicine” (ATM) strategy.
 Online annex: 3-3-BHC-1 
In the area of hormonal contraception, we collaborate in family planning programs with international 
development partners. We support the World Health Organization (WHO) in the fight against neglected 
tropical diseases and tuberculosis and also offer patient access programs in some markets where large 
segments of the population cannot currently benefit from innovative medicines.
Innovative products for 
profitable and sustain-
able growth	
See Chapter 1.2
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3. Strategies of the Subgroups
Targeted family planning
As the world market leader in oral contraceptives, the Pharmaceuticals Division has many years of  
expertise in the field of hormonal contraception. We have been supporting family planning programs of 
national and international organizations for 50 years. Our support represents a significant contribution 
toward achieving the United Nations Millennium Development Goals, including that of improving  
maternal health. Self-determined family planning also supports the struggle against poverty and 
strengthens women’s role in society. We provide a broad range of hormonal contraception methods  
for family planning programs: apart from oral contraceptives, we offer monthly and three-monthly  
injections and the contraceptive implant Jadelle™, a reversible long-term contraceptive method that is 
effective for up to five years. 
In 2013 we provided the following quantities of oral contraceptives, injections and implants to family 
planning programs in developing countries. CYP* (couple-years of protection) is the number of couples 
for whom one year of contraception is provided.	
• Jadelle™: 3 million packs (10.5 million CYPs)	
• oral contraceptives: 130 million cycle packs (8.7 million CYPs)	
• injections: 9.2 million (1.7 million CYPs)
The total of 20.9 million CYPs represents a 10% increase over the previous year.
The BAYER-USAID Contraceptive Security Initiative
At the same time, we are looking for new ways to improve the availability of our contraceptives.  
In 2009, for example, we launched the Contraceptive Security Initiative (CSI) jointly with USAID and 
introduced an oral contraceptive, Microgynon™ Fe, to the African market at a reduced price. The  
CSI aims to complement subsidized aid programs by making oral contraceptives available mainly to 
middle-class couples. The supply price is adjusted such that pharmacies can offer the products at 
prices that match the financial resources of middle-income women and couples. At the same time,  
we cover our costs and can thus provide a continuous supply beyond the five-year term of the agree-
ment. As local wholesalers and pharmacists benefit from sales, CSI has the effect of generating national 
income and thus further reducing dependence on charitable support. Since December 2010 the ini-
tiative has been successively introduced in Ethiopia, Uganda, Tanzania, Rwanda, Ghana, Kenya and 
Malawi; four more countries are scheduled to join the program by the end of 2014.
The Jadelle™ Access Program
Since January 2013, a partnership between HealthCare and the U.S.-based Bill & Melinda Gates Founda-
tion has been improving access to our contraceptive implant Jadelle™. Under this agreement, we have 
reduced the price for our Jadelle™ implant, which was prequalified by the WHO in September 2009, by 
more than half, and up to 27 million women in the world’s poorest countries can gain access to this 
efective, long-acting reversible contraceptive by 2018. In 2013 the program won the CIPS (Chartered In-
stitute of Purchasing & Supply) Annual Award for “Best International Procurement Project of the 
Year.”
* All CYPs are determined using the MSI Impact Calculator (Version 1.2) and the calculation basis of the U.S. Agency for International 
Development (USAID). Example for oral contraceptives: 1 CYP = approx. 15 cycle packs
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3. Strategies of the Subgroups
Tackling neglected tropical diseases
Many diseases that primarily affect the poorest sections of the population can only be tackled through 
a substantial international effort. In 2012 13 pharmaceutical companies – including Bayer HealthCare 
– therefore joined with the governments of the United States, the United Kingdom and the United 
Arab Emirates, the Bill & Melinda Gates Foundation, the World Bank and several global health organi-
zations to launch the largest ever campaign designed to combat neglected tropical diseases. The goal 
of the “London Declaration on Neglected Tropical Diseases” is to contain or, if possible, eliminate  
10 of these tropical diseases by 2020. The various companies’ commitments reflect their respective 
areas of expertise. For more than 10 years we have supported the WHO by providing medicines to 
treat African sleeping sickness and Chagas’ disease free of charge.
 
We are providing the WHO with up to one million tablets of Lampit™ (active ingredient: nifurtimox 
120 mg) per year, along with US$300,000 for logistics and distribution, to combat Chagas’ disease. 
We are also currently developing a smaller nifurtimox tablet with a lower active ingredient content 
(30 mg) to simplify the treatment of children with Chagas’ disease.
 
Since 2002 we have supported the WHO in the fight against African sleeping sickness – also known 
as human African trypanosomiasis (HAT) – by providing 10,000 ampoules of Germanin™ per year 
free of charge to combat a form of the disease that mainly occurs in eastern and southern Africa. 
West African sleeping sickness, the most widespread form, can be treated since 2009 with a combi-
nation therapy (NECT) using two active ingredients – nifurtimox from Bayer and eflornithine from  
Sanofi. Following completion of the clinical studies, the new treatment was included in the WHO List 
of Essential Medicines. Bayer has been supplying the WHO with 400,000 nifurtimox tablets per year 
for the combination therapy since 2009. The rate of new infections has declined since then. 
Currently some 70% of all registered cases of HAT worldwide occur in the Democratic Republic of 
the Congo. In 2013 we therefore increased our commitment to the fight against African sleeping 
sickness, setting up a project for an initial term of three years during which we will provide €100,000 
per year for the mobile intervention teams deployed by the WHO in DR Congo to tackle local out-
breaks. With the help of these teams, people in remote areas are gaining better access to diagnosis 
and treatment. This also represents a major step toward achieving the target set by the London  
Declaration on Neglected Tropical Diseases of eradicating African sleeping sickness by 2020.
New treatments for tuberculosis
The current six- to eight-month standard therapy for tuberculosis (TB) is based on four drugs that 
were discovered more than 30 years ago and often have to be administered under the direct supervision 
of health care professionals. The long period makes consistent treatment more difficult to achieve, 
and the number of resistant strains of bacteria is therefore increasing. The available medicines are 
not effective against the multi-drug-resistant TB (MDR-TB) caused by resistant bacteria. As part of the 
WHO’s STOP-TB partnership, we have therefore provided our Avalox™ / Avelox™ (active ingredient: 
moxifloxacin) antibiotic at a reduced price for an emergency aid program to combat MDR-TB since 
2011.
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3. Strategies of the Subgroups
16 countries have joined the program since December 2011. A total of around 1.3 million moxifloxa-
cin tablets were supplied to six countries (China, Georgia, Armenia, Haiti, Russia and Indonesia) in 
2013. This quantity of the drug enables the treatment of a good 2,450 MDR-TB patients for the 
­minimum treatment period of 18 months. Since 2005 we have also been collaborating with the U.S.-
based ­Global Alliance for TB Drug Development (TB Alliance) on a broadly based clinical trial program 
­investigating the efficacy and tolerability of moxifloxacin as part of a combination therapy to shorten 
the treatment period for pulmonary tuberculosis. The results of this trial are currently being evaluat-
ed. We have committed to file for registration of moxifloxacin to treat TB and provide the drug at a 
­reduced price if the trial outcome is positive.
Programs for improved drug access
In certain countries where large segments of the population do not have access to innovative medicines 
– such as India and China, but also in the United States – patient access programs are established for
selected products. These programs, jointly run with partners from local health authorities and 
non-governmental organizations, help to fill existing treatment gaps by making available innovative 
products for cancer treatments, for instance, or therapeutic options for patients with chronic diseases 
such as multiple sclerosis or hemophilia, for example. Some of the programs go beyond the supply  
of medicines and provide patient and family support, medical personnel and access to the necessary 
diagnostic facilities. The programs are developed on a local or regional basis to optimally meet  
specific patient needs.
Our Consumer Health segment includes non-prescription medicines, dermatology products, blood 
­glucose meters, medical devices and contrast agents, as well as pharmaceutical and grooming products 
for livestock and companion animals.
The goal of the Consumer Care Division is to become the market leader for over-the-counter (OTC) 
­medicines. We aim to achieve this mainly by exploiting the organic growth potential of proven brands 
such as Aspirin™, Aleve™, Bepanthen™ / Bepanthol™ and Canesten™. In addition, we are investing heav-
ily in the Emerging Markets of Eastern Europe, Latin America and Asia. We are also utilizing external 
growth opportunities in the form of acquisitions or product inlicensing, an example being the acquisition 
in July 2013 of Steigerwald Arzneimittelwerk GmbH, Darmstadt, Germany, a company specializing in 
non-prescription herbal medicines.
In the Medical Care Division, we continue to focus on our competitive positions in the core areas of 
­diabetes management, contrast agents and medical devices. In the Diabetes Care business unit, we are ex-
panding our range of products and services by developing new blood glucose monitoring systems to help 
people with diabetes better manage the disease. In the Radiology & Interventional unit, our core focus is in 
the areas of contrast agents, contrast agent injection systems, and thrombectomy and atherectomy sys-
tems. We are also developing new software and IT solutions to optimize contrast agent and radiation dos-
age management. 
The Animal Health Division is among the world’s major producers of veterinary pharmaceuticals. We 
aim to strengthen our position through organic growth, acquisitions and inlicensing. 
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3. Strategies of the Subgroups
CropScience
Sustainable agriculture, higher crop yields and improved crop quality are becoming increasingly impor­
tant in view of the need to ensure adequate food supplies for a growing world population despite the 
­limited amount of arable land and the increased demand for animal feed and renewable raw materials.
CropScience aligns its corporate planning to long-term trends in the markets for agricultural products. 
The subgroup’s strategy for future growth is built on four key elements: enhancing the Crop Protection 
and Environmental Science portfolio, increasing customer centricity along the entire value chain, lead-
ing the way in the area of innovation, and expanding the Seeds business. 
We aim to enhance our Crop Protection and Environmental Science portfolios by adding new and 
­improved products, concentrating on core brands and offering integrated solutions in major crops. We 
have a significant technology platform for both chemical and biological crop protection, enabling us to 
offer customers complete solutions from seed treatment through to the harvest. We are investing sub-
stantially in our production capacities to meet rising demand for our products. 
Another major part of our strategy is to strengthen customer centricity along the entire value chain 
and optimize distribution management. We are also steadily expanding the successful business model of 
food chain partnerships in the form of collaborations with food processors and retailers. This supports 
our objective of sustainably increasing our customers’ productivity. In these partnership projects, Crop-
Science works with all participants in the food chain to safeguard and increase yields and improve the 
quality of harvested produce. 
To lead the way in innovation, we aim to build on our expertise in the integration of seed technology 
and chemical and biological crop protection so that we can develop holistic solutions.
Another key element in our strategy is the expansion of our Seeds business. We plan to further 
strengthen our positions in our established crops – cotton, oilseed rape / canola, rice and vegetables – 
and plan to build significant positions in soybeans and wheat. For example, we intend to gain long-term 
access to high-quality breeding material through acquisitions, inlicensing and partnerships and to 
steadily expand our existing breeding expertise. 
CropScience 
strategy based on four 
core elements
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3. Strategies of the Subgroups
MaterialScience
MaterialScience, with its high-tech polymer materials and application solutions, is helping to address 
the challenges posed by population growth, the depletion of fossil resources, climate change, greater 
mobility and increasing urbanization. We are continuing to develop our product portfolio, which mainly 
comprises components for polyurethane foams, high-tech polycarbonate plastics and raw materials for 
coatings and adhesives. In addition to product innovations, we are working on new or improved, 
eco-friendly production processes that also bring cost benefits for ourselves and our partners. 
Against this background, MaterialScience is targeting long-term, profitable growth. We aim to sustain-
ably earn a premium on our capital costs and thus help to increase corporate value. We intend to safe-
guard or expand our leading competitive positions in world markets in a challenging environment. This 
applies particularly to emerging economies such as China, India, Brazil and Russia. 
We take sustainability principles fully into account in our business processes. We want our products to 
benefit both the environment and society. We aim to continue our steady investment in process tech-
nology in order to increase safety, mitigate environmental impacts and raise efficiency.
In the Polyurethanes (PUR) business unit, we intend to safeguard our strong position on the world 
market as an integrated raw material and systems supplier, mainly for rigid and flexible foams. Demand 
is expected to continue increasing in the coming years. The uses for polyurethane foams include insu-
lations for buildings and refrigerated appliances. These materials thus help to reduce energy consump-
tion and greenhouse gas emissions. They also ensure added comfort in many areas of everyday life. In 
line with our objective of achieving cost leadership, we are concentrating on further increasing efficien-
cy at our production facilities, partly through the use of the latest process technologies. At our site in 
Dormagen, Germany, for example, we are erecting a large-scale, state-of-the-art facility for toluene di-
isocyanate (TDI), a key precursor for flexible foams. In the rigid foam sector, we are further expanding 
our capacities in Shanghai, China, for the precursor diphenylmethane diisocyanate (MDI) to service the 
demand in Asia.
The global market for polycarbonates is focused on Asia, which accounts for more than 60%. The 
Polycarbonates (PCS) business unit has several large production facilities for this high-tech plastic in 
the region. To safeguard our position in the world market, we plan to gradually increase production 
­capacity in Shanghai. We also aim to further improve the efficiency of our plants worldwide. This par-
ticularly lightweight and stable polymer material is used in the automotive and consumer electronics 
industries and other sectors due to its versatility.
The focus of the Coatings, Adhesives, Specialties (CAS) business unit is on the production of polyure-
thane-based raw materials for coatings and adhesives. Here we aim to maintain our excellent position 
in our core business and open up new, related growth areas. Our chemical expertise and years of expe-
rience in formulation development make us a preferred development partner and supplier of custom-
ized solutions for many new coating and adhesive applications that offer not only attractive design op-
tions, but also provide effective mechanical protection.
MaterialScience  
helps to address global 
challenges
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4. Economic Environments of the Subgroups
 	See Chapter 1.6
4. Economic Environments of the Subgroups
The economic environments in which the subgroups operate are outlined below. (The economic en-
vironment for the Bayer Group as a whole is described in Chapter 1.6 “Corporate Environment.”)
HealthCare
Growth in the pharmaceuticals market was based mainly on increased demand in the emerging econo-
mies. In the United States and a number of European countries, growth continued to be impeded by 
­restrictive health policies.
The consumer care market expanded somewhat faster than in the previous year, mainly due to continu-
ing high demand for non-prescription medicines in the emerging markets. A strong cold season in the 
first half of 2013 facilitated market growth in North America and Europe. The slight downturn in the 
medical care market was due to a weaker diabetes care market, while the market for contrast agents 
and medical equipment (Radiology & Interventional business unit) was flat year on year. The animal 
health market expanded at a slightly slower pace than in the previous year.
CropScience
The seed and crop protection market continued its dynamic development in 2013. Farmers benefited 
from a positive market environment due to persistently low inventory levels for most agricultural com-
modities. This in turn led to strong demand for high-value seeds and for crop protection products.
Growth in the global seed and crop protection market last year was again driven by Latin America, par-
ticularly Brazil and Argentina. In North America, we also registered above-average growth rates in 2013 
despite persisently cold weather and a drought at the beginning of the year. In Asia / Pacific, too, the pos-
itive overall market trend continued in 2013 with slightly higher growth than in the previous year. The 
Chinese and Indian crop protection markets displayed the strongest growth momentum in the region. In 
Europe, on the other hand, growth rates were below the world market average, mainly as a result of the 
late start to the season and adverse weather conditions in northern Europe. Growth rates were moderate 
in the Mediterranean countries but higher than average in Eastern Europe.
Economic Environments of the Subgroups
[Table 3.4.1]
 
Growth* in 2012
Growth* in 2013
HealthCare
 
 
Pharmaceuticals
+ 3%
+ 3%
Consumer Care
+ 4%
+ 5%
Medical Care
0%**
– 2%
Animal Health
+ 4%
+ 3%
CropScience
Seed and crop protection market
> 10%
≥ 5%
MaterialScience 
(Main customer industries) 
 
 
Automotive industry
+ 6%
+ 3%
Construction industry 
+ 2%
+ 3%
Electrical / electronics industry
+ 3%
+ 4%
Furniture market
+ 5%
+ 3%
*		Bayer’s estimate, excluding pharmaceuticals market, source: IMS Health. IMS Market Prognosis. Copyright 2014.  
	 	All rights reserved, currency-adjusted; 2013 data provisional 
**	revised  
as of Febrary 2014
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4. Economic Environments of the Subgroups
MaterialScience
Global development in the principal customer industries of importance to MaterialScience (automotive, 
construction, electrical / electronics and furniture) was at a generally low level in 2013 as expected due 
to the continuing economic weakness in the eurozone and the downturn in Asia. 
The automotive industry registered considerably weaker global growth compared with the previous 
year. Volumes continued to decline in Europe as a result of ongoing weak demand in nearly all countries. 
Growth momentum also slowed in North America. The very dynamic trend continued in China, however, 
while growth in the other Asian countries slowed.
Growth in the global construction sector improved compared with the previous year. While construc-
tion investment in the United States showed signs of recovering and growth in the principal Asian coun-
tries remained stable, demand in Western Europe again declined. 
The global electrical / electronics industry again posted robust growth in 2013. While the previous 
year’s solid growth rates persisted in North America and Asia, slight growth was recorded in Europe 
(mainly driven by the Eastern European countries), following the downward trend in the prior year.
Global development of the furniture industry was weaker in 2013 than the year before. The pace of 
growth in Asia slowed due to weaker domestic and export demand. Austerity programs and consumer 
reticence in Europe caused the sector to shrink once again, though at a much slower rate than the  
year before.
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5. Research, Development, Innovation
5. Research, Development, Innovation
With strong and efficient research and development (R&D), a focus on growth areas and the Emerging 
Markets, and a national and international network of outstanding partners, we are creating the foun-
dation for innovation and thus the company’s future success. In 2013 a total of €3,190 million (2012: 
€3,013 million) was spent on research and development. This was equivalent to 7.9% (2012: 7.6%) of 
sales. The number of employees working in research and development worldwide was 13,700. 
 Online annex: 3-5-1
For our leading experts in research and development, we offer targeted career advancement  
opportunities through our Expert Career initiative. In addition, the 120-member Expert Club – headed 
by the member of the Board of Management responsible for research – promotes the sharing of best 
practices among scientific experts from different subgroups.
We also ensure that special contributions by individuals or employee groups are announced and  
honored. For example, we bestow research awards such as the Otto Bayer Medals, which are presented 
every two years to teams of scientists for outstanding achievements. 
Employees use the Bayer Group’s suggestion system, known as the Bayer Ideas Pool, mainly to  
propose improvements to methods or processes. In 2013 the employees once again displayed their 
commitment to the company by making numerous valuable suggestions for potential improvements. 
Altogether some 4,800 ideas were submitted to the Bayer Ideas Pool. Of these, 51% were implemented, 
resulting in savings totaling more than €4 million by year end from the proposals implemented in 
2013. We paid out a total of over €1 million in special employee bonuses for the suggestions imple-
mented.
Research collaborations with external partners from academia and industry form an integral part of our 
innovation strategy. These collaborations and alliances with leading universities, public research insti-
tutes and partner companies are supplemented by incubators, crowdsourcing and science hubs in Asia 
and the United States to tap into external innovative potential using the open innovation approach. Some 
of our collaborations are supported by public funding. 
 Online annex: 3-5-2
In Germany alone, Bayer participated in more than 100 publicly funded projects in 2013, receiving  
a total of about €8 million in grants. This is equivalent to roughly 0.3% of our annual R&D expenses. 
Research and Development Expenses 2013	
[Graphic 3.5.1]
64% (65%)
HealthCare
Pharmaceuticals 52% (52%)
Consumer Health 12% (13%)
27% (26%)
CropScience
7% (8%)
MaterialScience
2% (1%)
Reconciliation
2012 figures in parentheses
€3.2 billion
(€3.0 billion)
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5. Research, Development, Innovation
Reliable, global protection of intellectual property rights is essential for an innovation company like 
Bayer. At the end of 2013, we owned approximately 67,400 valid patent applications and patents 
worldwide relating to some 8,700 protected inventions.
 Online annex: 3-5-3
The term of a patent is normally 20 years. Since it takes an average of 12 years to develop a new  
medicine, for example, only eight years of patent protection generally remain following the product’s 
approval. In most cases it would be impossible to cover the substantial costs incurred in the research 
and development of innovative medicines or of new indications or dosage forms for existing  
drugs without patent protection. We are therefore committed to protecting both the international  
patent system and our own intellectual property worldwide. You can read more about this topic in  
our political positions: www.annualreport2013.bayer.com/political-position-ip.
To support the development of intellectual property rights (IPR) and copyright in China, Bayer sponsors 
the IPR chair at Tongji University in Shanghai. As well as arranging law studies for more than  
100 students, the chair works with Bayer – supported by the Chinese Patent Office – to organize an 
annual IPR forum dealing with issues related to the protection of intellectual property.
Strengthening research in the Life Sciences
Bayer is the only global company simultaneously researching improvements in human, animal and plant 
health. Systematic and intensive collaboration among researchers from both Life Science subgroups is pro-
viding new impetus. In this context, researchers from HealthCare and CropScience are collaborating on 
projects involving central biological processes such as gene regulation or energy metabolism. The joint use 
of technology platforms is being expanded. These projects have been supported since 2012 by Bayer’s in-
ternal “Life Sciences Fund” and are mostly implemented together with external partners. 
HealthCare
in 2013 we spent €2,040 million (2012: €1,955 million) for research and development in the Pharmaceu-
ticals and Consumer Health segments. This amounted to 63.9% of R&D spending in the Bayer Group and 
was equivalent to 10.8% (2012: 10.5%) of HealthCare sales. At the end of 2013, some 7,800 employees 
of HealthCare were working in research and development.
Research and development expenses in the Pharmaceuticals segment amounted to €1,654 million 
(2012: €1,561 million), or 14.8% (2012: 14.5%) of segment sales. Drug discovery in the Pharmaceuti-
cals segment focuses on the areas of cardiology, oncology, gynecological disorders and hematology. 
Complementing this work is common mechanism research in areas such as ophthalmology and inflam-
mation. We conduct research activities at four centers, of which two are located in Germany and two 
in the United States. Work in Berlin and Wuppertal, Germany, mainly focuses on the discovery, optimi-
zation and development of new active substances. Research is also carried out at these sites in the 
fields of drug metabolism, pharmacokinetics, toxicology and clinical pharmacology. Our research and 
development activities in the Mission Bay district of San Francisco and in Berkeley, California, United 
States, are concentrated on biologicals and hematology. We also operate innovation centers in Beijing, 
China, and Singapore, through which we coordinate our research partnerships in Asia. 
We conducted clinical trials with several drug candidates from our research and development pipeline 
during 2013 to drive the development of new substances for treating diseases with a high unmet medical 
need. Following the completion of the required studies with a number of these drug candidates, we sub-
mitted applications to one or more regulatory agencies for approvals or approval expansions.
	 www.annual-
report2013. 
bayer.com/ 
political- 
position-ip
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5. Research, Development, Innovation
We have recently launched five innovative medicines on the market. Of special importance is our antico-
agulant Xarelto™ (active ingredient: rivaroxaban). In the area of oncology, Stivarga™ (active ingredient: 
regorafenib) is approved for the treatment of advanced colorectal cancer and gastrointestinal stromal 
­tumors (GIST) in some countries, and approvals are pending in others. In 2013 we received marketing 
authorization for Xofigo™ (active ingredient: radium-223 dichloride) in the treatment of bone metastases 
in prostate cancer patients. Other promising products recently launched include ­Eylea™ (active ingredi-
ent: aflibercept) to treat various eye diseases. Riociguat, a new substance to treat different forms of 
­pulmonary hypertension, was approved in the U.S. and Japan in 2013 under the trade name Adempas™. 
In addition, we strengthen our products through life-cycle management to improve their value for pa-
tients and / or expand their indications.
The most important drug candidates in the approval process are: 
The following table shows our most important drug candidates currently in Phase II or III of  
clinical testing: 
Products Submitted for Approval *
[Table 3.5.1]
 
Indication
Aflibercept
E.U.; treatment of diabetic macular edema
Aflibercept
Japan; treatment of myopic choroidal neovascularization
FC-Patch Low
E.U.; contraceptive patch
Octocog alfa**  
(recombinant Factor VIII)
U.S.A.; prophylaxis in adult patients with hemophilia A  
Regorafenib
E.U.; treatment of metastatic and/or unresectable gastrointestinal stromal tumors
Riociguat 
E.U.; treatment of pulmonary hypertension (CTEPH)
Riociguat 
E.U.; treatment of pulmonary hypertension (PAH)
Rivaroxaban***
U.S.A.; secondary prophylaxis of acute coronary syndrome
Sorafenib
E.U., Japan; treatment of thyroid cancer
*			as of February 11, 2014
**		octocog alfa = active ingredient of Kogenate™ 
***	submitted by Janssen Research & Development, LLC
Research and Development Projects (Phases II and III) *
[Table 3.5.2]
 
Indication
Status
Amikacin inhale 
Treatment of pulmonary infection
Phase III
BAY 94-9027 (rFVIII mutein)
Treatment of hemophilia A
Phase III
Ciprofloxacin DPI
Treatment of pulmonary infection
Phase III
LCS-16 (ULD LNG Contraceptive System)
Intrauterine contraception, duration of use: up to 5 years
Phase III
Prasterone **
Treatment of vulvovaginal atrophy 
Phase III
Regorafenib
Treatment of refractory liver cancer
Phase III
Regorafenib 
Treatment of colorectal cancer following surgical removal  
of liver metastases
 
Phase III
Rivaroxaban
Prevention of major adverse cardiac events (MACE)
Phase III
Rivaroxaban
Anti-coagulation in patients with chronic heart failure ***
Phase III
Sodium deoxycholate ****
Injection for reduction of submental fat
Phase III
Sorafenib
Treatment of breast cancer
Phase III
Sorafenib
Treatment of liver cancer, adjuvant therapy 
Phase III
Sorafenib
Treatment of kidney cancer, adjuvant therapy 
Phase III
Tedizolid
Treatment of complicated skin infections and pneumonia
Phase III
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5. Research, Development, Innovation
We regularly evaluate our research and development pipeline in order to prioritize the most promising 
pharmaceutical projects.
Xarelto™ (active ingredient: rivaroxaban) has been approved for more indications than any of the  
other new oral anticoagulants. Xarelto™ is registered in the following indications in the United States 
and Europe:
•	 prevention of venous thromboembolism (VTE) in adult patients after elective hip or knee joint 
­replacement surgery
•	 prevention of stroke and systemic embolism in adult patients with non-valvular atrial fibrillation 
(AF) and one or more risk factors
•	 treatment of deep vein thrombosis (DVT) and pulmonary embolism (PE) in adults
•	 prevention of recurrent DVT and PE in adults
In May 2013, Xarelto™ was additionally approved by the European Commission for the prevention of 
atherothrombotic events after acute coronary syndrome (ACS) in patients with elevated cardiac biomark-
ers in combination with standard antiplatelet therapy. In January 2014, the Cardiovascular and Renal 
Drugs Advisory Committee of the U.S. Food and Drug Administration (FDA) voted against the approval of 
Xarelto™ for the treatment of ACS. The FDA will consider the Advisory Committee’s recommendations in 
its review of the application for approval of rivaroxaban in this indication but is not bound by them. 
Xarelto™ is marketed in the U.S. by Janssen Pharmaceuticals, Inc., a subsidiary of Johnson & Johnson.
Beyond the already approved indications, rivaroxaban is also being investigated in other cardiovascular 
disorders. Ongoing clinical Phase III trials include COMPASS and COMMANDER-HF. The aim of the COMPASS 
study is to investigate the potential of rivaroxaban in the prevention of major adverse cardiac events. The 
COMMANDER-HF study is evaluating the potential additional benefit of rivaroxaban in combination with 
standard therapy in reducing the risk of mortality, myocardial infarction and stroke in patients with 
chronic heart failure and significant coronary heart disease.
Research and Development Projects (Phases II and III) *
[Table 3.5.2 (continued)]
 
Indication
Status
Copanlisib (PI3k inhibitor)
Treatment of recurrent / resistant non-Hodgkin’s lymphoma
Phase II
BAY 85-8501 (neutrophil elastase inhibitor)
Lung diseases
Phase II
BAY 1021189 (sGC stimulator)
Chronic heart failure
Phase II
BAY 1067197 (partial adenosine A1 agonist)
Heart failure
Phase II
Finerenone (MR antagonist)
Chronic heart failure
Phase II
Finerenone (MR antagonist)
Diabetic nephropathy
Phase II
Molidustat (HIF-PH inhibitor)
Anemia
Phase II
Radium-223 dichloride
Treatment of bone metastases in cancer
Phase II
Refametinib (MEK inhibitor)
Cancer therapy
Phase II
Regorafenib
Cancer therapy
Phase II
Riociguat
Pulmonary hypertension (IIP)
Phase II
Riociguat
Raynaud’s phenomenon
Phase II
Riociguat
Diffuse systemic sclerosis
Phase II
Sorafenib
Cancer therapy
Phase II
*		 	as of February 11, 2014
**	 	prasterone = Vaginorm
***		conducted by Janssen Research & Development, LLC
****	sodium deoxycholate = ATX-101
The nature of drug discovery and development is such that not all compounds can be expected to meet the pre-defined project goals.  
It is possible that any or all of the projects listed above may have to be discontinued due to scientific and / or commercial reasons and will not 
result in commercialized products. It is also possible that the requisite Food and Drug Administration (FDA), European Medicines Agency 
(EMA) or other regulatory approvals will not be granted for these compounds.
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5. Research, Development, Innovation
Xarelto™ is approved in more than 125 countries worldwide across all indications, its approval status 
varying from country to country. 
Rivaroxaban was discovered by HealthCare and jointly developed with Janssen Research & Develop-
ment, LLC.
Riociguat is the first member of a new class of vasodilating agents known as soluble guanylate cyclase 
(sGC) stimulators. Administered in tablet form, riociguat is currently being investigated as a new 
­approach for the treatment of various forms of pulmonary hypertension. Based on the Phase III studies 
CHEST-1 and PATENT-1, we submitted riociguat in February 2013 for marketing approval in the United 
States and the European Union for the treatment of inoperable chronic thromboembolic pulmonary 
­hypertension (CTEPH) and pulmonary arterial hypertension (PAH). We received the first approval in the 
indication CTEPH in September 2013 in Canada. In October 2013, following priority review, the FDA 
­approved riociguat in the U.S. under the trade name Adempas™ for use in CTEPH and PAH. In January 
2014, we received approval for Adempas™ for the treatment of CTEPH in Japan, and in the European ap-
proval process, the European Committee for Medicinal Products for Human Use (CHMP) recommended 
that riociguat be approved to treat CTEPH and PAH. A final decision from the European Commission is 
expected in the first half of 2014.
Stivarga™ (active ingredient: regorafenib) is a novel, oral multikinase inhibitor. It inhibits various signal 
pathways that are responsible for tumor growth. Stivarga™ was approved in the United States in 2012 
for the treatment of patients with metastatic colorectal cancer (mCRC). The Japanese Ministry of Health, 
Labour and Welfare (MHLW) approved the product in this indication in March 2013. In August 2013, the 
product was approved in the European Union.
In February 2013, the FDA approved Stivarga™ to treat patients with locally advanced, unresectable or 
metastatic gastrointestinal stromal tumors (GIST) who have been previously treated with imatinib and 
sunitinib. In August 2013, Stivarga™ was approved by the Japanese MHLW for the treatment of GIST. In 
September 2013, the product was submitted for approval in this indication in the European Union. 
Regorafenib is a compound developed by Bayer and co-promoted by Bayer and Onyx Pharmaceuticals, 
Inc., a subsidiary of Amgen Inc., in the United States. In 2011, we signed an agreement with Onyx under 
which that company receives a royalty on any future global sales of Stivarga™ in oncology.
Xofigo™ (active ingredient: radium-223 dichloride), a cancer drug jointly developed with Algeta ASA, 
Norway, received FDA approval in May 2013 to treat adult patients with castration-resistant prostate can-
cer (CRPC) with symptomatic bone metastases and no known visceral metastases. In November 2013, the 
product was approved in this indication in the European Union. In the United States, Xofigo™ is co-pro-
moted with Algeta US, LLC.
We are jointly developing and commercializing our cancer drug Nexavar™ (active ingredient: 
sorafenib) with Onyx Pharmaceuticals, Inc., United States. The successful active ingredient sorafenib, 
which targets both cancer cells and the vascular system of the tumor, has been registered for the treat-
ment of ­advanced renal cell carcinoma since 2005 and hepatocellular carcinoma since 2007. We plan to 
develop the product beyond these two therapeutic areas with a broadly based life-cycle management 
program. Based on the clinical Phase III DECISION study, we submitted sorafenib to the European Medi-
cines ­Agency (EMA) and the FDA in June 2013 for regulatory approval in the treatment of locally ad-
vanced or metastatic differentiated thyroid cancer refractory to radioactive iodine. The FDA granted this 
approval in ­November 2013 following a priority review. In September 2013, sorafenib was submitted to 
the Japanese MHLW for marketing authorization for the treatment of thyroid cancer. Sorafenib is also 
being ­investigated in Phase III registration studies as an adjuvant therapy following curative tumor re-
section in patients with renal cell carcinoma or hepatocellular carcinoma. We are also conducting 
Phase III registration studies in breast cancer. 
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5. Research, Development, Innovation
Eylea™ (active ingredient: aflibercept) is our joint developmental project with Regeneron Pharmaceuti-
cals, Inc., United States. Aflibercept blocks the natural growth factor VEGF (vascular endothelial growth 
factor), thus preventing the abnormal formation of new blood vessels that tend to leak blood. The medi-
cation is administered directly into the eye. Regeneron Pharmaceuticals holds exclusive rights in the 
United States, where Eylea™ is approved for the treatment of wet age-related macular degeneration 
(AMD) and treatment of macular edema secondary to central retinal vein occlusion (CRVO). Bayer markets 
the product outside the United States. Eylea™ has been approved since 2012 in Europe, Japan, Australia 
and additional countries for the treatment of wet AMD. In August 2013, the European Commission ap-
proved Eylea™ for the treatment of visual impairment due to macular edema secondary to central retinal 
vein occlusion (CRVO). In November 2013, Eylea™ was approved by the Japanese MHLW for the treatment 
of CRVO.
The first regulatory submissions in two further indications were made in November 2013: we applied to 
the EMA for approval of aflibercept in the treatment of diabetic macular edema (DME) and to the Japanese 
MHLW for approval in the treatment of choroidal neovascularization caused by pathologic myopia 
(mCNV). 
In the area of hematology, a clinical Phase II / III trial with the developmental substance BAY 86-6150 did 
not show the desired results and was discontinued ahead of schedule in May 2013. The trial investigated 
the efficacy and safety of the substance in people with hemophilia A and hemophilia B in whom antibod-
ies to coagulation factors had developed.
We are not currently pursuing approval for the oral contraceptive YAZ™ Flex Plus in the United States.
Five new drug candidates currently in clinical Phase I or II trials are at the focus of our early-stage devel-
opment and are to be transitioned to Phase III trials as quickly as possible. Finerenone, a next-genera-
tion oral non-steroidal mineralocorticoid receptor antagonist, is being developed for use in cardiology. 
Finerenone is currently in clinical Phase IIb development for the treatment of worsening chronic heart 
failure and diabetic nephropathy. The second drug candidate in cardiology is an oral soluble guanylate 
cyclase (sGC) stimulator (BAY 1021189). A Phase IIb study in patients with worsening chronic heart fail-
ure began in November 2013. A Phase IIb program with the investigational new drug molidustat is un-
der initiation for the treatment of cardiorenal syndrome in patients with anemia associated with chronic 
kidney disease and / or end-stage renal disease. In oncology, copanlisib, a novel, intravenous phosphati-
dylinositol-3 kinase (PI3K) inhibitor, was selected for accelerated development. We have also progressed 
toward the development of new treatment options for patients with gynecological diseases: sPRM 
(BAY 1002670) is a novel oral progesterone receptor modulator that shows promise in the long-term 
treatment of women with symptomatic uterine fibroids.
Some of our pipeline candidates are being developed for the treatment of serious, very rare diseases – 
also known as orphan diseases. For example, regorafenib was designated by the regulatory authorities 
as an orphan drug for the treatment of patients with gastrointestinal stromal tumors (GIST). 
Bayer regards research into cancer stem cells as promising and is active in this area together with 
U.S.-based OncoMed Pharmaceuticals, Inc. Cancer stem cells are present in tumors and have typical 
characteristics of stem cells, such as self-renewal and differentiation potential. Cancer stem cells are 
those considered responsible for the genesis, metastasis and recurrence of cancer. However, Bayer is 
not active in the area of conventional stem cell research, which examines adult or embryonic stem 
cells.
Research and development expenditures in the Consumer Health segment amounted to €386 million 
(2012: €394 million), or 5.0% (2012: 5.0%) of segment sales. 
New drug candidates 
for diseases with a high 
medical need
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5. Research, Development, Innovation
In our Consumer Care Division, research and development activities at the product development centers 
in Morristown, New Jersey, United States, and Gaillard, France, focus on developing non-prescription 
(over-the-counter = OTC) products, medical skincare products and nutritional supplements to market 
­maturity. Aligned to end consumers, our development strategies are geared toward expanding and 
­improving our brand portfolio through new products, packaging and delivery forms. We also work to 
achieve reclassification of current prescription medicines as OTC products. We introduced a number of 
new product line expansions to various markets in 2013. They included new delivery forms and uses for 
existing brands such as Canesten™ and Bepanthen™ / Bepanthol™. 
The research and development activities of our Medical Care Division focus on blood glucose monitor-
ing and the continuing development of contrast agents and medical equipment used in the diagnosis or 
treatment of various diseases. 
At our two U.S. research and development locations for the Diabetes Care business unit – Tarrytown, 
New York, and Mishawaka, Indiana – we are focusing on strengthening our product lines and expanding 
into further attractive segments of the diabetes market. In 2013 we again launched a number of innova-
tive products in key markets to meet the specific needs of people with diabetes. Examples included the 
Contour™ Next and Contour™ Link blood glucose meters in Europe and the new Contour™ Plus platform 
in selected markets in Europe, Africa and the Middle East. 
The aim of our research and development activities in the area of contrast agents and medical equip-
ment (Radiology & Interventional business unit) is to steadily improve our contrast agents and our con-
trast injection, thrombus removal and other vascular intervention systems in order to build on our lead-
ership position. Our research and development centers are located near Pittsburgh, Pennsylvania, and 
Minneapolis, Minnesota, in the United States; in Berlin, Germany; and in Sydney, Australia. In 2013 we 
worked to expand the capabilities of our informatics product offerings by developing new software and 
­informatics to improve contrast agent and radiation dose management. 
In our Animal Health Division, we focus our research and development activities on antiparasitics, anti-
biotics and medicines to treat non-infectious disorders. We operate R&D centers in Germany, the United 
States, New Zealand and Brazil. Our central research activities are conducted in Monheim, Germany, as 
part of our Life Sciences platform in conjunction with pharmaceutical research and in close collabora-
tion with our researchers at CropScience. We reinforce the business through numerous external collabo-
rations and by inlicensing product development candidates.
Open innovation
We gain access to complementary technologies and external innovation potential through strategic 
collaborations with partners. Our Pharmaceuticals segment works with various partners during the 
individual development stages of a medicine. A number of examples are listed below: 
Strategic cooperation  
in research and devel-
opment
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5. Research, Development, Innovation
Pharmaceuticals Cooperation Partners
[Table 3.5.3]
Partner
Cooperation objective
Algeta ASA 
Codevelopment of radium-223 dichloride for the treatment of castration-resistant 
prostate cancer patients with bone metastases
Amgen Research GmbH
Access to BiTE™ antibodies for developing novel tumor therapies
Ardea Biosciences Inc. 
Codevelopment of oncological products based on MEK  
(mitogen-activated ERK kinase) inhibitors
BioInvent International AB
Access to antibody library with antibody inlicensing option
Broad Institute 
Strategic partnership in oncology to discover and develop active substances  
that specifically target tumor-specific gene mutations
Compugen Ltd. 
Collaboration for the research and development of new immunotherapy  
approaches in oncology
German Cancer Research Center 
Strategic partnership for the development of new therapeutic options in oncology 
and immunotherapy
Dyax Corp. 
Access to antibody library with the option to inlicense antibodies for the  
development and commercialization of novel tumor therapies
EndoCeutics Inc.
Development of prasterone to treat vaginal atrophy and female sexual dysfunction
Evotec AG 
Research collaboration to identify and validate development candidates  
in endometriosis
ImmunoGen Inc. 
Cooperation in the field of antibody-drug conjugates (ADCs) for novel  
tumor therapies
Inception 4, Inc.
Research into new approaches for the treatment of various eye diseases
Janssen Research & Development, 
LLC of Johnson & Johnson
Development of Xarelto™ (rivaroxaban) 
Ludwig Boltzmann Institutes 
Research into lung vascular disease, especially pulmonary hypertension, and 
search for ways to treat heartmuscle weakness.
Nektar Therapeutics  
Codevelopment of a targeted antibiotic inhalation therapy for lung infections 
(amikacin inhale)
Novartis AG 
Development of a targeted antibiotic inhalation therapy for lung infections  
(ciprofloxacin DPI)
OncoMed Pharmaceuticals Inc.
Discovery and development of novel anti-cancer stem cell therapeutics
Onyx Pharmaceuticals Inc.  
of Amgen Inc.
Codevelopment of  Nexavar™ (sorafenib) for various types of cancer 
Peking University
Research cooperation and establishment of a joint research center
Prometheus Laboratories Inc.
Development of diagnostic in-vitro assays for personalized medicine
Qiagen Manchester Ltd.
Development of diagnostic tests in personalized oncology treatment
Regeneron Pharmaceuticals Inc. 
Development of Eylea™ (aflibercept) to treat various eye diseases 
Development of a PDGFR-beta antibody for ophthalmology
Seattle Genetics Inc. 
Cooperation in the field of antibody-drug conjugates (ADCs) for novel  
tumor therapies
Trius Therapeutics Inc. of Cubist 
Pharmaceuticals
Codevelopment of tedizolid to treat a range of infections 
Tsinghua University
Research cooperation and establishment of a joint research center
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5. Research, Development, Innovation
In 2008 we entered into a strategic alliance with the German Cancer Research Center (DKFZ) in Heidel-
berg, Germany, focusing on the identification and early development of new therapeutic approaches for 
cancer. This collaboration is designed to turn new scientific findings about cancer into new medicines or 
therapies as quickly as possible. A total of 26 projects have been initiated so far that relate to biological 
target identification for drug discovery or to early drug discovery. In April 2013, we expanded the collab-
oration to include immunotherapy. The first projects in this field began in June 2013.
Also in June 2013, we concluded a new licensing agreement with Seattle Genetics, Inc., United States,  
in the area of antibody-drug conjugates (ADCs). Under this agreement, we will receive worldwide rights 
to utilize Seattle Genetics’ special ADC technology for antibodies to several protein targets in the field  
of oncology.
In August 2013, we signed a collaboration and licensing agreement with Compugen Ltd., Israel, pertain-
ing to the research, development, and commercialization of antibody-based therapeutics for cancer im-
munotherapy.
In September 2013, we entered into a strategic alliance with the Broad Institute, Cambridge, Massachu-
setts, United States, in the area of oncogenomics and drug discovery. The goal of this five-year collabo-
ration is to jointly discover and develop therapeutic agents that selectively target cancer genome alter-
ations.
In November 2013, we entered into a collaboration with Inception Sciences, Inc. and Versant Ventures, 
both in the United States, to conduct early research in the area of ophthalmology. The goal of the new al-
liance is to develop innovative treatment options for patients with eye diseases, such as wet age-related 
macular degeneration and geographic atrophy. This work will focus on a novel target and pathway and 
will be carried out by Inception 4, Inc., United States.
In January 2014, we signed an agreement with Regeneron Pharmaceuticals, Inc., United States, to joint-
ly develop an innovative antibody to the platelet-derived growth factor receptor beta (PDGFR-beta) as a 
potential combination therapy with Eylea™ (aflibercept) for the treatment of wet AMD. The first clinical 
studies in this indication are scheduled to start in early 2014.
In January 2014, Bayer and Peking University, Beijing, China, signed a collaboration agreement on a 
three-year strategic partnership to promote translational research for drug discovery. Under this agree-
ment, the two partners will establish a joint research center at Peking University.
Since 2009, we have operated the internet platform “Grants4Targets,” through which researchers at uni-
versities, other research institutions or start-up companies can propose biological targets for study in 
collaboration with Bayer. In 2013 we expanded this platform to include two further initiatives – “Grants-
4Leads” and “Grants4Apps”: “Grants4Leads” gives chemists and pharmacists the opportunity to submit 
biologically active molecules as leads for collaboration with Bayer. This program adds a chemical com-
ponent to the biology-oriented Grants4Targets initiative. “Grants4Apps” is a portal for proposing IT solu-
tions designed to enable a wide range of applications in the area of health care. Unlike the first two plat-
forms, which are important for early research, “Grants4Apps” looks for applications that can be used 
from the research stage right through to commercialization. The program saw a very successful rollout 
in 2013, with 22 grants already awarded.
In 2012, we opened the CoLaborator™, a new center in the Mission Bay district of San Francisco with 
laboratory facilities for bioscience startup companies. With this incubator concept, the scientists benefit 
both from the laboratory infrastructure and from the expertise of the Bayer researchers, which can facili-
tate the professional, goal-oriented design of development programs, for example. At the same time, we 
aim to be the first contact point for young companies in their search for possible cooperation partners.  
A second CoLaborator™ is currently being established at the Berlin site. 
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5. Research, Development, Innovation
CropScience
In 2013, CropScience invested €857 million (2012: €779 million) in research and development, which 
was 26.9% of R&D spending in the Bayer Group and equivalent to 9.7% (2012: 9.3%) of CropScience 
sales.  
CropScience maintains a global network of research and development facilities employing some 4,700 
people. Our largest R&D sites for chemical and biological crop protection products are located in Mon-
heim and Frankfurt am Main, Germany; Lyon, France; and Davis, California, United States. The major 
­research centers of the Seeds unit, which focuses on improving seed through seed technology and 
breeding, are located in Ghent, Belgium; Haelen, Netherlands; and Morrisville / Raleigh, North Carolina, 
United States. While research is carried out centrally at a small number of sites, our development and 
plant breeding activities take place both at these sites and at numerous field testing stations across the 
globe. This ensures that future active substances and crop varieties can be tested according to ­specific 
regional requirements.
In Crop Protection / Seeds, our scientists working in the areas of seed technology, agricultural chemistry 
and biologics are closely collaborating as part of our integrated research approach. This bundles the 
technical expertise acquired in chemical and biological research and field development, aligning it to 
our long-term research objectives and business strategies for the various crops.
In the Crop Protection unit, we identify and develop innovative, safe and sustainable products for use 
in agriculture as insecticides, fungicides, herbicides or seed treatments. In the fields of chemistry, biolo-
gy and biochemistry, modern technologies such as high-throughput screening and bioinformatics play 
an important role in identifying new chemical lead structures. Collaborations with external partners 
complement our own activities.
In January 2013, CropScience acquired the German agrochemical company Prophyta Biologischer 
Pflanzenschutz GmbH. The transaction enables CropScience to further expand its research and product 
pipeline in the area of biological crop protection. The acquisition is also intended to promote the devel-
opment of a leading technology platform for biological products and strengthen the fruit and vegetables 
business.
We are broadening the range of uses for our active ingredients by developing new mixtures or innova-
tive formulations of products already on the market so that they can be applied in additional crops or be 
made easier to handle. 
In mid-2014 we will combine our U.S. research and development activities in vegetable seeds and bio-
logical crop protection products at a new, integrated site in West Sacramento, California. Our goal is to 
better exploit the potential of our global research and development capacities by merging and expand-
ing activities.
We plan to launch several more new products based on biological and chemical crop protection mecha-
nisms in the coming years. For example, in 2014 we plan to introduce an insecticide to control nema-
todes under the Verango™ and Velum™ trademarks. In 2015 we expect to launch a further insecticide 
under the Sivanto™ brand, a new insecticide class to control sucking insects, and begin marketing the 
herbicide Council™ and a biological fungicide.
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5. Research, Development, Innovation
Research in our Seeds unit is devoted to optimizing plant traits. We are developing new varieties in our 
existing core crops – cotton, oilseed rape / canola, rice and vegetables. We have now expanded our  
research activities to include two new core crops – wheat and soybeans. Our work focuses on improving 
the agronomic traits of these crops. Our researchers are working to increase the quality and yield  
potential of crop plants – for example, by improving the profile of rapeseed (canola) oil or enhancing the 
properties of cotton fibers. We are also targeting the development of plants that have high tolerance 
against external stress factors such as drought and can better utilize water. Further areas of focus  
include developing new herbicide tolerance technologies based on alternative modes of action, and  
improving insect resistance and disease tolerance. To do this we employ modern breeding techniques 
ranging from marker-assisted breeding to plant biotechnology methods. 
In March 2013, CropScience acquired the soybean seed producer Wehrtec Tecnologia Agricola Ltda. 
and the soybean business of Agricola Wehrmann Ltda., both headquartered in Brazil. This transaction 
strengthens the research and development activities of CropScience in soybeans and contributes to the 
development of varieties tailored to the requirements of Brazilian soybean growers. 
Also in March 2013, CropScience and Syngenta filed for approval of a new herbicide-tolerance soybean 
trait in various countries. The application is currently being reviewed by the regulatory authorities in the 
United States, Canada, and major soybean-importing regions, including the European Union. This trait 
gives soybean plants tolerance toward the three active ingredients mesotrione, glufosinate-ammonium 
(Liberty™) and isoxaflutole, and is an important new way to combat difficult-to-control weeds. Its esti-
mated launch date is between 2015 and 2020.
In April 2013, CropScience and Monsanto Company, U.S.A., entered into licensing agreements for 
next-generation technologies in the field of plant biotechnology. Monsanto will provide CropScience 
with a royalty-bearing license to herbicide tolerance technologies in soybeans in the United States and 
Canada. In addition, CropScience will receive a royalty-bearing license to an insect-resistance technolo-
gy in soybeans in Brazil with an option on a royalty-bearing license in other Latin American countries. 
CropScience will grant Monsanto licenses to evaluate technologies for corn rootworm control and herbi-
cide tolerance.
In December 2013, CropScience acquired the start-up company FN Semillas S.A., headquartered in Ar-
gentina. Closing of this acquisition remains subject to regulatory approvals. FN Semillas S.A. specializes 
in the breeding, production and marketing of improved soybean seeds in Argentina. This acquisition 
marks CropScience’s entry into the Argentinian market for soybean seeds.
In 2013 we also successfully launched Roundup-Ready™ hybrid canola seed in Australia and began mar-
keting an oilseed hybrid in India. Here we introduced our mustard seed to the market. 
Our proprietary glyphosate herbicide tolerance technology GlyTol™ has been available in FiberMax™ 
cotton seed varieties in the United States since 2011. In 2014, we plan to launch a new combination of 
insect resistance and herbicide tolerance for cotton containing both TwinLink™ and GlyTol™ technology, 
which will offer farmers integrated pest and weed control.
In the coming years we plan to market numerous new hybrid rice and canola varieties with improved 
stress and insect resistance under the Arize™ and InVigor™ trademarks. 
With many crops, such as vegetables, major success can be achieved using conventional plant breeding 
methods. As vegetables are mostly intended to be marketed and eaten fresh, merchants and consumers 
have particularly strict requirements regarding their appearance, nutrient content, taste and shelf life. 
We are launching a succession of new vegetable seed varieties that satisfy these requirements.
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5. Research, Development, Innovation
Our integrated product pipeline for crop protection and seed technology contains more than 25 individu-
al projects, along with numerous new seed varieties and improved products, that have estimated launch 
dates between 2011 and 2016. We believe these products have a combined peak sales potential in ex-
cess of €4 billion. Crop Protection plans to have launched around 10 products during this period. In our 
Seeds business, we plan to bring some 15 projects to market maturity for the broad-acre crops of cotton, 
oilseed rape / canola, rice, wheat and soybeans, along with several hundred new vegetable varieties, over 
the same period. 
In Environmental Science, we evolve chemically and biologically based solutions for consumers and 
professional users by tailoring substances from our Crop Protection unit or external partners for use in 
non-agricultural scenarios. Current development projects include insect gels and baits, herbicides, fun-
gicides and products for the control of disease-transmitting insects. 
In 2013 Environmental Science expanded its range of biological solutions by adding to the Natria™ 
product line for the Bayer Garden™ business in the United States and Europe, and launched Harmo-
nix™ Insect Control, the first biological insecticide for professional pest control, in the United States. 
The launch of Marengo™ for use on ornamental plants in the United States broadened our range of her-
bicides based on the active substance indaziflam. The golf course business was strengthened by the 
market launch of the fungicide Interface™ in the United Kingdom and South Korea and the herbicide 
Specticle G™ in the United States. The product range for professional pest control was expanded in  
numerous countries to include a new formulation of the insecticide Maxforce™.
 Online annex: 3-5-BCS-1
On the European market we offer a mild weed control product based on fatty acids derived from  
palm oil. As the production of palm oil is often associated with social and ecological problems, Bayer 
joined the Round Table for Sustainable Palm Oil (RSPO) in 2012. This underscores our commitment  
to responsible materials procurement. Bayer purchases GreenPalm certificates, which support the 
production of sustainable palm oil.
Open innovation
CropScience is part of a global network of research and industry partners from diverse segments of the 
agriculture industry, chemical and biological research, and the food industry. These cross-industry part-
nerships enable us to better understand and do justice to the needs of our customers over the long term. 
An example is the partnership between CropScience and the U.K.-based Innovative Vector Control Con-
sortium (IVCC), which we extended by three years in 2012. We are cooperating with IVCC to develop new 
substances for use against mosquitoes that transmit diseases such as malaria and dengue fever. 
 Online annex: 3-5-BCS-2
Malaria, for example, remains one of the most dangerous tropical diseases and is the leading cause  
of mortality in children under the age of five. Bayer has played an active role in the fight against malaria 
for more than 50 years. We estimate that indoor and outdoor insect sprays and larvicides from  
CropScience provided protection for up to 70 million people against malaria and for up to 30 million 
people against dengue fever in 2013. Dengue is currently the fastest-spreading mosquito-borne  
disease in tropical regions.
CropScience is a leading producer of indoor insecticide sprays to control malaria mosquitoes. Over 
the past three years, the Environmental Science product Ficam™ has played a particularly important 
role in controlling mosquitoes resistant to pyrethroids. 
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5. Research, Development, Innovation
In 2013 these activities reached an important milestone: The World Health Organization issued a 
­recommendation for a new, long-acting and thus more cost-effective, deltamethrin-based spray insecti-
cide that offers a possible alternative to the older insecticide DDT (dichlorodiphenyltrichloroethane) for 
indoor use. It is planned to introduce the product in selected Sub-Saharan African countries and other 
malaria-endemic areas in 2014 as soon as the respective national approvals have been obtained. 
CropScience also maintained its wheat research collaboration with the Commonwealth Scientific and In-
dustrial Research Organisation (CSIRO) in Australia. This strategic collaboration, which began in 2009, is 
aimed at raising wheat yields and thus boosting global wheat production in the long term. 
However, it is a long way from the breeding, cultivation and protection of crop plants to the production 
of healthy food products with a good shelf life and their distribution to retailers. Special mention should 
therefore be made of our food chain partnerships, in which CropScience supports all the players in the 
food chain – from farmers and food processors to importers, exporters, wholesalers and retailers. Crop-
Science has initiated food chain partnership projects for over 40 crops in more than 30 countries, mainly 
in Asia, Latin America and Europe. Our experts advise farmers on sustainable growing methods – from 
seed selection and the controlled, eco-friendly use of crop protection products to the transparent moni-
toring of production.
Our cooperation with partner organizations in joint projects is now an internationally successful busi-
ness model for all participants in the food chain. Small farmers in developing and emerging economies 
draw particular benefit from the improved production and marketing structures. In 2013 we continued to 
expand our partnerships in Latin America. An example is the project in Chile in which we work together 
with Walmart and lettuce growers to ensure the traceable production of lettuces. In Peru we are current-
ly collaborating with PepsiCo and potato farmers to ensure sustainable potato chip production that con-
serves natural resources, creates value for developing communities and makes potato-growing more ef-
ficient by optimizing the use of crop protection products.
MaterialScience
In 2013, MaterialScience spent €208 million (2012: €241 million) for research and development. The 
subgroup thus accounted for roughly 6.5% of the Bayer Group’s R&D expenses. The ratio of R&D expens-
es to sales in the subgroup itself was 1.9% (2012: 2.1%). In addition, MaterialScience spent €97 million 
(2012: €115 million) on joint development projects with customers.
A total of about 1,100 people were employed in research and development in 2013, many of them at Inno-
vation Centers in Leverkusen, Germany, and Pittsburgh, Pennsylvania, United States, or the new facility for 
the Asia / Pacific region that opened in Shanghai, China, in 2013. This increase in our local presence is 
aimed at bringing research and development even closer to our customers in the Emerging Markets.
Our activities in the Polyurethanes (PUR) business unit focus partly on the continuing development of 
polyurethane rigid foam as a highly efficient insulating material for buildings and refrigerated applianc-
es. Our principal goal in this respect is to further improve the material’s insulating and flame retardancy 
properties. Among the most recent innovations is an especially fine-pored foam with up to 10% lower 
thermal conductivity than conventional polyurethane rigid foam. 
Our research and development activities are also directed toward meeting the growing demand for add-
ed comfort. Our innovative solutions in this area include viscoelastic polyurethane flexible foam that is 
increasingly being used in furniture and mattresses. 
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5. Research, Development, Innovation
We have made significant progress in recent years in the area of process development. We are currently 
working with carbon dioxide as a new source of carbon for polyurethanes to make us less dependent on 
petrochemical raw materials. In 2013 we completed the “Dream Production” research project in this 
field. We also pressed ahead with plans for the commercial exploitation of this new technology. 
Our research and development activities in the Polycarbonates (PCS) business unit are geared to the de-
velopment of new products – mainly for the automotive and electrical / electronics industries – that help 
to reduce weight, improve energy efficiency and safety, and increase design freedom. 
Materials we have developed and introduced for the consumer electronics sector include extra light-
weight, glass-fiber-reinforced materials for ultramobile laptop computers and other applications.
For the automotive industry, we are developing not only lightweight solutions but also materials and sys-
tems for high-quality, individual car interior designs. Here the “DirectCoating / DirectSkinning” technolo-
gy co-developed by MaterialScience enables the efficient manufacture of coated components in a single 
production step. We also offer sustainable solutions for car bodies, laptop housings and other items us-
ing recycled plastics.
In the Coatings, Adhesives, Specialties (CAS) business unit, we are driving the development of raw 
­materials for high-performance polyurethane coatings, adhesives and sealants. These are used in areas 
such as renewable energies, mobility and infrastructure facilities, as well as for textiles and sporting 
goods.
Our development activities are directed toward eco-friendly products that consume less resources and 
can be more efficiently applied. Here we are concentrating on low-solvent, solvent-free and waterborne 
systems. The use of renewable raw materials is also playing an increasingly important role. In addition 
to the conventional application areas, we aim to open up lucrative market segments by continuously 
evolving our product and technology portfolio. 
Our activities in Functional Films center on products based on polycarbonates or thermoplastic polyure-
thanes, into which holographic functions can also be incorporated for attractive markets such as 3D flat 
screens. 
Open innovation
In line with the open innovation approach, MaterialScience collaborates with external scientific institu-
tions and with academic spin-offs and start-up companies. These collaborations are mainly based in Eu-
rope, the United States, China or Japan. They focus on areas such as renewable raw materials and ener-
gies, and new composite materials for lightweight construction.
Our partners include RWTH Aachen University in Germany, with which we jointly operate the CAT Catalyt-
ic Center, as well as Tongji University in China and several institutes of the Chinese Academy of Science. 
In the United States, too, we support research activities at renowned universities such as Pennsylvania 
State University, Case Western Reserve University, Carnegie Mellon University, Virginia Polytechnic In-
stitute and State University. Key areas here include functional materials, renewable raw materials and 
fundamental subjects such as new crosslinking mechanisms for polymers.
In the scientific field, we take either a leading or an advisory role in numerous publicly funded projects, 
as in the area of “sustainable chemistry” in the German research cluster SusChemSys and in the pro-
gram run by the German Federal Ministry of Education and Research aimed at using CO2 as a building 
block for plastics. We also participate in industry associations and other specialist bodies such as the 
German Chemical Society (GDCh), the DECHEMA Society for Chemical Engineering and Biotechnology in 
Germany and the American Chemical Society. 
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6. Sustainability
Our innovation capability is also spurred by collaborations with customers or other industry sectors. Ex-
amples here include the “future_bizz” corporate network or “CLIB2021,” which is concerned with renew-
able raw materials. We aim to work with the best partners from the industry sectors that are important to 
us in order to combine competencies and turn them into innovations.
Bayer Technology Services
Bayer Technology Services is an important innovation partner to the subgroups in the areas of techno-
logical development, plant construction and production. All Bayer subgroups work closely with this ser-
vice company worldwide on technology solutions, particularly in the fields of process technology, engi-
neering, and the safe and efficient operation of production facilities.
 Online annex: 3-5-4
Together with the subgroups, Technology Services is developing process technology, biotechnology 
and systems biology platforms to support the research, development and production of new products 
and applications, with the focus on open innovation. Development activities at the INVITE research 
center, a collaborative venture with Dortmund Technical University, include work on new flexible, 
modular production concepts. At the Joint Research Center on Computational Biomedicine, a collabo-
ration with RWTH Aachen, computer-assisted models and methods for investigating fundamental  
biological mechanisms are researched and developed for clinical use together with Aachen University 
Hospital. 
 
6. Sustainability
To us, sustainability basically means future viability and it forms an integral part of our business 
­strategy. We are convinced that we can only achieve lasting commercial success if we balance economic 
growth with ecological and social responsibility. 
Responsible business practices are the foundation of the Bayer Group‘s sustainable alignment. We can 
identify and mitigate risks at an early stage by implementing this alignment in the areas of compliance 
(e.g. anti-corruption and responsible marketing), human resources policy, product stewardship, health, 
environmental protection and safety, and supplier management. This is one of the key requirements for 
society’s acceptance of our business. On this basis, we aim to contribute to overcoming global challeng-
es with our innovations, and in so doing develop additional business opportunities. 
In addition, we identify opportunities and risks by analyzing the expectations of important stakeholders. 
We match these up with our own assessment, thereby deriving the relevant fields of action for Bayer.  
We document the findings in a materiality matrix. 
 Online annex: 3-6-1
The analysis takes place through regular dialogue with and surveys of external and internal stake-
holders. Within the context of a stakeholder process, we examined, restructured and refocused the 
existing materiality matrix in 2011 together with an international think tank. This process involved 
external surveys, internal workshops, benchmarking and analyses. We are planning a new materiality 
analysis for 2014. 
Technology Services 
supports all Bayer  
subgroups with tech-
nology platforms
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6. Sustainability
1	 New technologies: managing risks & opportunities
2	 Commitment to job security
3	 Fighting health risks posed by counterfeits
4	 Product safety, REACH, monitoring impact of endocrines and active ­ingredients in the environment, 
HCFCs and withdrawal of WHO Class I products
5	 Innovation to meet customer and societal needs
6	 Incl. compliance, integrity, anticorruption, responsible marketing & sales practices
7	 Promoting energy efficiency, efficient resource use (e.g. water, energy) and switch to renewables where possible
8	 Facilitating greater access to health care through R&D, differentiated pricing, patent protection, collaboration etc.
9	 Respect and promotion of human rights throughout the value chain, incl. the abolition of child labor
10	Safeguarding IP while providing access to products and innovations
11	Contributing to sustainable food production, supply and availability
12	Climate protection through mitigation & adaptation
13	Social investment and social volunteering programs
14	Reduced use of animals where possible, commitment to welfare of animals as part of scientific R&D process
15	Comprises employee training & development, remuneration, benefits, recruitment, retention
16	Ensuring a sound diversity of gender, ethnic background etc. of employees
17	Ensuring occupational, process & plant and transportation safety
18	Promoting fair and constructive relations and influencing sustainable ­behavior in the supply chain, 
incl. ESG performance and human rights
19	Reducing environmental impacts of products and processes on water, air, soil, supporting biodiversity
Essential Fields of Action
[Graphic 3.6.0-1]
• Product stewardship 4
• Innovation 5
• Business ethics & transparency 6
• Resource availability 7
• Access to health care 8
• Human rights 9
• Intellectual property /  
patent protection 10
• Sustainable food supply 11
• Climate change 12
Bayer relevance
Relevance for external stakeholders
low
moderate
high
low
moderate
high
• New technologies:  
biotechnology, nanotechnology 1
• Safeguarding of jobs 2
• Counterfeits 3
• Social commitment 13
• Animals in scientific research and  
alternative methods 14
• Human capital 15
• Diversity 16
• Safety 17
• Supplier management 18
• Environmental protection 19
Our stakeholder engagement, i.e. the integration of different target groups, provides an important basis 
and is necessary for better mutual understanding.
 Online annex: 3-6-2
As a socially engaged, globally active company, we know that this understanding can only be achieved 
through open and transparent dialogue with all relevant stakeholder groups. We view a systematic 
stakeholder dialogue not only as an important foundation for acceptance, but also above all as a basic 
condition for enabling us to understand and analyze the viewpoints and expectations of our stakeholders 
at an early stage. We aim to create trust in our work, and take the views of our stakeholders seriously. 
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6. Sustainability
We seek targeted dialogue both with stakeholders who are directly impacted by our business activity  
and with those who for their part directly or indirectly exert influence on our operations. We divide the  
main stakeholders with whom we interact into four groups: partners, financial market ­participants,  
regulators and a wide variety of social interest groups. Below we give an overview of our engagement 
with the various stakeholder groups relevant to us, drawing on selected examples from 2013.
Stakeholder dialogue at Bayer
Bayer considers itself a part of society and of public life. Society’s acceptance and appreciation  
of our corporate activities are therefore essential to our reputation and business success.
The influence of stakeholders has grown continually over the last few years. We are therefore  
seeking interaction with players relevant to us at local, national and international level.
In doing so, we evaluate various trends, opinions and suggestions to take these into account as far 
as possible in our commercial decision-making processes. The same applies when our assessments 
differ from those of our stakeholders and thus harbor a certain potential for conflict. Against this 
backdrop we have to find some flexibility in our decision-making through constructive discussions 
with representatives of our stakeholder groups. This approach helps us to identify social and  
market trends early, avoid risks, assess our contribution and thereby set focus areas for our activities.
At Bayer, we systematically involve our stakeholders using the stakeholder engagement process, 
which is set out in a manual for our employees. This process describes how – throughout the Group 
and on a project-by-project basis – stakeholder groups can be identified, their expectations charted 
and dialogue with them steered. The engagement process requires regular review and needs to  
be reflected against social trends. The focus is on objectives, personal commitment and an ade-
quate consideration of the needs of target groups, as well as efficiency and effectiveness.
To ensure the long-term acceptance and appreciation of our corporate activities, we plan to link  
our stakeholder engagement even more closely to corporate strategy in the future. In the second 
half of 2012, we therefore launched a project whose initial phase includes a review of our current 
stakeholder engagement. As well as various workshops – including at top management levels –  
this involved conducting comprehensive benchmarking and best practice analyses. Based on the 
results from these, previous stakeholder activities and our experience with the Stakeholder Check 
(a tool for identifying and evaluating stakeholders in connection with new investment projects),  
we developed a new concept that concentrates on stakeholder engagement in investment projects 
and new product launches. We are currently conducting training in our subgroups to test the con-
cept in practice and develop it further.
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6. Sustainability
Our current stakeholder activities range from targeted dialogue locally, nationally and internationally 
at both Group and subgroup level, through active participation in committees and specialist work-
shops, to comprehensive information programs and involvement in international initiatives and  
collaborations. We believe that stakeholder engagement is only successful when we adapt the form 
the dialogue takes to the individual stakeholder situation. Our stakeholder dialogue therefore includes 
both communication with the individual target groups and also issue-related multi-stakeholder events. 
We use surveys to determine which issues are particularly important to our stakeholder groups. For 
2014 we are planning a review of the most significant issues for us, involving relevant stakeholders in 
the process. The next major Group-wide employee survey is scheduled for 2014.
We distinguish between four stakeholder groups with whom we have most interaction – partners, 
­financial market participants, regulators and a wide variety of social interest groups. Selected exam-
ples from 2013 are elaborated on below to provide an insight into our involvement with the various 
stakeholder groups relevant to us.
OUR PARTNERS: Customers, suppliers, employees, associations,  
universities and schools 
Customers
Our conduct toward customers is shaped in particular by a sense of responsibility. The long-term success 
of our company is essentially dependent on both the provision of innovative products, and a partner-
ship-based relationship with our customers together with a high level of satisfaction on their part. In our 
view, products that satisfy customer demands while at the same time providing a benefit to society are 
the key to sustainability and business success. Our diversified business means that our products and  
customer structures vary greatly. The three Bayer subgroups have therefore put in place both specific 
systems for measuring customer satisfaction and their own complaint management systems.
HealthCare’s divisions maintain their own active dialogues with target groups that vary significantly 
due to their portfolios. The sales organizations of the divisions carry out various satisfaction studies – 
for example with physicians from different disciplines, or with pharmacists and other partners in the 
health care system. Furthermore, customer studies are carried out and systematically evaluated so 
that we can better understand the needs of patients, health care staff, hospitals, wholesalers, and 
public and private payers.
 Stakeholder Engagement Process
[Graphic 3.6.0-2]
Preparation
Identification
Characteri-
zation
Prioritization
Clustering
Strategy
development
Interaction
Controlling
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6. Sustainability
However, different legal requirements apply for prescription medicines than for non-prescription or 
medicinal products. This makes the conditions under which customer satisfaction data are gathered 
in the health sector correspondingly complex. For example, patients may not be surveyed directly 
about the effects and side effects of prescription medicines. HealthCare therefore conducts primary 
market and data research.
The Global Market Research function in the Pharmaceuticals segment initiated a study in 2012 to 
evaluate the satisfaction of approximately 3,000 physicians in six countries. The second phase, which 
includes another six countries, was launched in 2013.
As the link to German customers, Bayer Vital, HealthCare’s distribution company in Germany, tracks 
key success parameters relating to customer service issues. These include, for example, the obser-
vance of delivery dates and / or specifications on the part of external logistics companies, complaints 
concerning orders or deliveries and telephone availability. In this connection, various performance  
indicators were defined that provide information about availability and are analyzed.
At Animal Health, the methods for measuring customer satisfaction are dependent on the market  
segment. The division also carries out market research projects on specific disease-related issues and 
measures satisfaction with its own products.
Feedback and answers to questions about HealthCare products and services are made available  
online by the relevant business units and country organizations. In Germany, these include Bayer  
Vital and HealthCare Germany with the website www.Gesundheit.bayer.de/de/service/ 
kundenservice/index.php, in German only.
To enable it to ensure optimal service in the long term, the customer service center has a quality  
management system certified to iso 9001:2008.
CropScience investigates the satisfaction of its customers using standardized surveys as part of its 
commercial excellence activities, among other tools. In addition, CropScience plans to completely 
overhaul its internal customer relationship management (CRM) processes by the end of 2014. The 
goal is to come to a new understanding of CRM that concentrates less on technical aspects but rather 
is more consistently aligned to customer requirements. Alongside the farmers, this new approach 
also focuses on distribution channels and disseminators in both complex, developed markets and 
smaller ones. A centralized, global CRM platform will also standardize core processes.
At MaterialScience, four regional Supply Chain Centers serve as the central link to the customer. This 
enables the pooling of all information streams from order acceptance to dispatch planning, delivery 
and complaint acceptance in the Europe / Middle East / Africa, Latin America, NAFTA and Asia/Pacific 
regions. Through the online information platform BayerONE, MaterialScience customers can check 
the status of their orders at any time.
The subgroup’s supply, production and delivery processes are certified to DIN ISO 9001 and are  
regularly audited both internally and externally.
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6. Sustainability
Customer satisfaction data are systematically compiled at MaterialScience, too. To ensure optimal 
quality of service, customers are surveyed, their complaints systematically evaluated in the global 
complaints management system, and the supplier evaluations performed by customers analyzed in 
detail. A new complaints management system was introduced in 2013 to enable complaints to be 
processed better and more quickly. The customer satisfaction analyses are conducted separately by 
the individual business units. The results flow directly into quality management and the continuous 
improvement process.
Suppliers
Procurement of products and services in differentiated markets and locations represents a particular 
challenge for our procurement organization. Dialogue with our suppliers is essential to ensure 
smooth production routines and should bring transparency into the business relationships and help 
build up reliable relations. Our goal is to enable our suppliers to better understand the principles of 
our procurement policy and our requirements, particularly as regards sustainability. In return, we 
would like to know more about the suppliers’ situation, so as to be able first to identify obstacles and 
second to develop innovative solutions together. To this end, we again arranged numerous initiatives 
and events with our suppliers worldwide in the reporting year.
Together with other companies, we are active in the “Together for Sustainability” (TfS) initiative for 
greater sustainability in the supply chain. The newly developed website offers, for example, online 
training courses in various aspects of sustainability.
In 2013 HealthCare held Supplier Days in the Chinese cities of Shanghai and Beijing that focused 
particularly on sustainability. The Pharmaceutical Supply Chain Initiative (PSCI), assisted by Health-
Care, held the first capability building conference for suppliers, focusing on occupational safety, in 
Rome, Italy, in May 2013. In July 2013, MaterialScience presented sustainability issues at a regional 
Supplier Day in Shanghai, China. Bayer’s Indian national company again organized a local Supplier 
Day in Mumbai, India, in October 2013. During this event, the BayBuy Awards are presented every 
year, which include recognition of the most sustainable suppliers in India.
In September 2013, we introduced the Bayer Safety Award for contractors. This newly established 
prize for exceptional safety work is based on an initiative on the part of Procurement and HSEQ 
(Health, Safety, Environmental Protection, Quality) and is to be awarded for the first time in 2014.
In December 2013, the second Group-wide global town hall meeting of the Procurement Community 
took place at the Leverkusen site in Germany. Live transmission enabled colleagues at international 
sites also to take part. The town hall meeting provided the opportunity to put questions about  
sustainability in the supply chain directly to the relevant subgroup heads of procurement and to find 
out about current developments in supplier management.
Employees
The expertise and commitment of our employees safeguard our business success. To sustain such 
success, the Bayer Group needs a modern human resources and talent management organization 
with competitive structures and processes. This includes regularly providing up-to-date information 
to our workforce, as well as involving our employees through active and targeted dialogue.
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6. Sustainability
Examples of Employee Dialogue
[Table 3.6.0-1]
Active employee dialogue at all levels
 
CEO blog “What’s important to me”: intranet blog by  
Dr. Marijn Dekkers, Chairman of the Bayer Board of Management
Ongoing 
“Bayer Talk” with the Chairman of the Board of Management
Once a year
Town hall meetings followed by a question-and-answer session 
 
 
 
Quarterly with Chairman of the Board of  
Management Dr. Dekkers from company head-
quarters, broadcast to all Bayer sites worldwi-
de, and at unspecified intervals in the sub-
groups and service companies as well
Global Leadership Conferences with workshops
At least once a year
Global employee surveys 
Regularly, every 18 months; the next will be  
in March 2014
Forums for the exchange of information about changes in 
the company
 
Information meetings for managerial employees 
 
Regularly at company headquarters for  
the holding company and at all subgroups  
and service companies
Employee assemblies 
Regularly, at unspecified intervals,  
at least once a year at German sites
European Forum: discussion between the Board of Management  
and Bayer employee representatives from all European countries 
where Bayer has sites
Once a year 
 
Discussions on performance, motivation and  
development perspectives
  
 
Mandatory feedback discussions as part of the Bayer Performance 
Management Process and the Bayer Development Dialogue
Ongoing 
360° feedback for managers 
Optionally on request as part of the Develop-
ment Dialogue 
Examples of issue-specific dialogues and events  
for different employee groups
  
W11 dialogues: national and international stakeholders in discourse 
with Bayer’s top management
Regularly, at unspecified intervals 
Expert Club Meeting: exchange of experiences on the theme of  
innovation among the scientific network of experts comprising Bayer 
scientists from the R&D units and the member of the Board of  
Management responsible for Innovation, Technology & Sustainability
At least once a year 
 
 
Process and Plant Safety Symposium with approximately 100 Bayer 
experts from around the world and international experts
Every two years  
Global Safety Day
Every September
Continuing education events in the areas of compliance, human 
rights, sustainability in procurement, and diversity
Ongoing (see Online Annex 3-7-5) 
Regular discourse in the global Public & Governmental Affairs  
Community on political developments and framework conditions  
relevant to the Group
Regularly 
 
“Meet HR” series – staff from the HR department meet personally 
with employees to discuss key issues in more detail 
Regularly in Germany, international roll-out 
launched
All subgroups hold issue-specific employee events  
worldwide.
Ongoing 
Media for employees
 
Bayer Group publications: print and online 
 
Employee magazines; intranet; numerous 
newsletters and occasion-related mailings, 
brochures, presentations, social media 
Print and online media by the subgroups and service companies  
for their employees
Employee magazines; intranet; newsletters 
and occasion-related mailings, social media
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6. Sustainability
Associations, universities, scientific institutions and schools       
Alongside its business activities, Bayer is also an active member of numerous national, European and 
international associations and their committees, such as the Federation of German Industries (BDI), 
the German Chemical Industry Association (VCI), the German Equities Institute (DAI), the European 
Chemical Industry Council (CEFIC), BusinessEurope and the International Council of Chemical Associ-
ations (ICCA). Bayer also currently chairs econsense, German industry’s sustainable development  
forum.
The Bayer subgroups are also involved in their respective trade associations, such as HealthCare in 
the European Federation of Pharmaceutical Industries and Associations (EFPIA), CropScience in the 
European Crop Protection Association (ECPA) and MaterialScience in PlasticsEurope. Along with  
general issues pertaining to particular areas, product stewardship and sustainability play an important 
role in many working groups.
Furthermore, scientists from our company maintain constant contact with renowned research institu-
tions, support partnership projects in the public and private sectors (e.g. in rice cultivation with the 
International Rice Research Institute), hold teaching positions at universities around the world (e.g.  
in Germany and China) and regularly invite scientists and university and school students to various 
events, such as symposia on health issues and research days for schoolchildren. We also consider this 
involvement to be an investment in the next generation. As a research-oriented company, we are 
heavily dependent on well-trained and talented individuals and on society’s acceptance of technology.
You can find more information on our comprehensive activities in dialogue with school and university 
students in Chapter 13 “Social Commitment.”
REGULATORS: legislators, authorities, politicians
The underlying conditions in which our company operates are shaped by authorities, legislators and 
politicians. Our political stakeholders include, in particular, political parties, ministries, subordinate 
authorities, foundations and political interest groups that have a decisive influence on the framework 
conditions in which our business operates. At the same time, they have an interest in industry’s  
expertise and economic contribution. Our active participation in political decision-making processes 
is not only democratically legitimate, it is also explicitly called for by essential players, for example 
through committees and expert and working groups.
Our current dialogues with authorities and ministries at local, national and international level include 
targeted discussions and active involvement in specialist workshops and cooperation projects.  
It is vital to have a trusting collaboration with these institutions, as they play a key role in shaping 
the framework conditions for our business, through legislative decisions or permits, for example. 
Owing to the economic importance of the industry, representatives of political parties and institu-
tions also have a keen interest in the expertise of and dialogue with representatives from our company, 
one example being the parliamentary evenings that the Foundation for World Population organizes 
together with HealthCare. 
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6. Sustainability
	 www.bayer.
com/en/ 
political- 
principles.aspx
Lobbying
In its Group Regulation “Code of Conduct for Responsible Lobbying,” Bayer sets out clear and  
binding rules for its involvement in political matters, aiming to ensure transparency in collaborations 
with the representatives of political institutions. Within the Group, the Public and Governmental Af-
fairs Committee is responsible for the strategic planning of Bayer’s political work. This especially in-
cludes dealing with specific political questions, as well as developing the company’s political posi-
tions.  
In 2013 Bayer’s political lobbying again focused on the acceptance of products and technologies in 
society, fostering and recognizing innovation, sustainable health care systems, chemicals and energy 
policy, and climate protection.
For more on our political principles see www.bayer.com/en/political-principles.aspx
Our liaison offices in Berlin, Brussels, Washington, Moscow, São Paulo and Beijing are key points of 
contact between our company and the political arena. In 2013 we spent €0.8 million on our liaison office 
in Berlin. That figure comprises personnel, operating and project costs. Bayer was one of the first  
companies in the life sciences sector to allow itself to be entered in the European Commission’s lobby 
register and discloses the relevant costs of its lobby work at E.U. level (approximately €2.8 million in 
2013). In accordance with our Bayer Group Regulation “Code of Conduct for Responsible Lobbying,” 
we enter ourselves in every transparency register set up by governments, regardless of whether entry 
is voluntary or legally required, as in Austria since the start of 2013. Should a similar initiative be in-
troduced in Germany, Bayer will participate in such a register there, too.
In the United States, Bayer discloses its lobbying costs in several public databases. In keeping with 
our Group Regulation, we have committed not to make any direct donations to political parties, 
politicians or candidates for political office. However, some associations to which we belong make  
donations on their own initiative, in compliance with statutory regulations. In the United States,  
companies are legally prohibited from donating to political candidates directly. However, some of our 
employees there utilize the opportunity to support candidates for parliamentary office by making  
private donations of their own funds via the Bayer Corporation Political Action Committee (BayPac). 
Political action committees in the United States are state-regulated, legally independent employee 
groups. Consequently, such donations are not donations made by the company. The BayPac contribu-
tions are regularly reported to the U.S. Federal Election Commission and can be viewed on its website.
FINANCIAL MARKET PARTICIPANTS: investors, banks, insurance companies,  
rating agencies
Intensive dialogue with the capital market is a high priority for Bayer. In our dealings with analysts,  
investors and rating agencies, we aim to increase the market value of the company and contribute to 
achieving an appropriate credit rating. These efforts are focused on ensuring a comprehensive,  
consistent and prompt exchange of information between the company and the various members of 
the financial community. The top priority of our work in this area is to achieve a fair valuation of Bayer.
We further intensified our investor relations activities, such as broker conferences, “Meet Manage-
ment” conferences, roadshows and field trips in the past year. Bayer was present in a total of 25 
­financial centers in 2013. You can find out more under “Investor Information.” 
We also regularly exchange ideas with analysts and investors from the field of sustainable invest-
ments. For example, we took part in a conference on Sustainable Responsible Investment (SRI)  
in 2013, and discussed inquiries from sustainability-focused financial market players in specific  
telephone conferences.
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6. Sustainability
SOCIAL INTEREST GROUPS: non-governmental organizations, public, 
local community, competitors
Non-governmental organizations (NGOs)
Bayer is involved in a variety of projects, thematic initiatives and specialist conferences at a national 
and international level to play an active role in the common task of shaping sustainable development. 
This also includes collaboration with non-governmental organizations and international organizations 
on various global issues such as nutrition (e.g. Society for International Cooperation), climate protec-
tion (e.g. U.N. Global Compact’s “Caring for Climate” initiative) or the following example in the area 
of family planning.
International Dialogue on Population and Sustainable Development: The issues of population and 
sustainable development have been the subject of increased debate around the world since the Unit-
ed Nations Millennium Development Goals were first formulated in 2001. HealthCare works toward 
achieving these development goals as a private-sector partner, maintaining close contact with gov-
ernments and non-governmental organizations. To promote networking between the various players 
and provide a forum for discussing reproductive health issues, HealthCare since 2002 has organized 
together with a number of development policy organizations a series of conferences entitled “Interna-
tional Dialogue on Population and Sustainable Development.” The partner organizations include the 
non-governmental organization International Planned Parenthood Federation (IPPF), the German So-
ciety for International Cooperation (GIZ) and, the German Foundation for World Population (DSW). 
The goal of this international conference is to share experiences and opinions, discuss strategies and 
– based on the results of the conference – draw up recommendations to assist political decision-makers.
Held annually in Berlin, the themes for this two-day event are decided jointly with the various partners 
and protagonists. In 2013 the participants discussed the future prospects for a strong young genera-
tion. To satisfy the need for intensive exchange and for the largest possible participation, the format 
of the event has changed over the years. The spectrum now ranges from panel discussions and expert 
meetings to interactive stakeholder forums. The establishment of the “World Café of Possibilities” 
created an additional discussion forum that involves the participants even more intensively.
Public / local community
The communities near our sites play a key role in our success. For this reason, we endeavor to  
be recognized at all of our sites as a reliable partner and attractive employer that meets its social 
responsibility. 
MaterialScience: In spring 2013 a citizens’ forum was launched in connection with the planned  
MaterialScience carbon monoxide pipeline between the Dormagen and Krefeld-Uerdingen sites in 
Germany. The goal of this was to further intensify the sharing of information and dialogue with the 
local communities around the pipeline. Headed by an external communications agency, this round 
table should provide a platform for exchanging and explaining facts and information about the 
­project. In doing so, Bayer is emphasizing the importance of objective and expert discussion. The aim 
of the CO Dialogue Forum is to be fair to all stakeholders as far as possible – including those who  
are opposed to the project. More information is available online at www.pipeline.bayer.de  
(in German only).
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6. Sustainability
	 www.material-
science. 
bayer.de/EN/
Projects-and-
Cooperations/
TDI-Project.
aspx
Public debate is also focusing on another, existing pipeline that supplies production facilities at the 
Leverkusen site with carbon monoxide from Dormagen. MaterialScience has been operating this 
pipeline with CO since 2002. It is part of a pipeline bundle, running mainly on the left bank of the 
Rhine and crossing beneath the Rhine to the Leverkusen site in what is known as a culvert. The pipe-
line is approved by the authorities, is continually monitored and regularly inspected. Chemical park 
operator Currenta and MaterialScience informed the public about this in its presentation of the 
planned construction of a new culvert. As part of a project at the Dormagen site in Germany lasting 
several years, MaterialScience is building a new large-scale plant for the production of the chemical 
toluene diisocyanate (TDI). The company has pursued an active information policy since the start of 
planning at the end of 2008. This includes an open dialogue with the relevant stakeholders. During 
the permit process, MaterialScience thus sought dialogue on numerous occasions with environmental 
groups, politicians, residents, citizens’ groups and media representatives among others. After submit-
ting the permit documents to the Cologne district authority, MaterialScience held an information 
week in May 2011 to provide information about the current status of the project. In February 2012, 
the Cologne district authority issued MaterialScience with early planning permission. The final ap-
proval was granted at the beginning of 2013, with start-up now scheduled for the second half of 2014.
Our information policy includes regular news releases on the project’s progress. MaterialScience  
has also set up a special website www.materialscience.bayer.de/EN/Projects-and-Cooperations/
TDI-Project.aspx containing detailed information about the construction project. This site can also  
be used to ask questions.
CropScience: The safety of its production facilities is also of vital importance to CropScience. As part 
of the “Safety dialogue,” experts at the Dormagen site explain to interested citizens what safety  
measures the companies based at the CHEMPARK site there undertake. CropScience also regularly 
uses forums, print media, and personal discussions with citizens’ initiatives, representatives of the 
church communities and the regional press to keep its neighbors at the Frankfurt-Hoechst and  
Knapsack sites in Germany informed.
Currenta: Local dialogue at the Lower Rhine sites (Dormagen, Krefeld-Uerdingen, Leverkusen) is 
supported by the new Currenta neighborship offices, which opened in mid-2013.sblmgemedseerg
SuStainaBiLity ManaGEMEnt anD StEERinG
Responsibility for steering and aligning our Group-wide sustainability strategy lies with the Group Man-
agement Board member responsible for Innovation, Technology and Sustainability in his function as 
Chief Sustainability Officer of the Bayer Group, and with the Group Sustainable Development 
Committee chaired by the Head of Environment & Sustainability in the Corporate Center.  
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6. Sustainability
 Online annex: 3-6-3
 
The committee identifies and evaluates sustainability-relevant opportunities and risks for our company, 
sets targets, draws up initiatives, management systems and regulations and is responsible for monitor-
ing. 
Targets and indicators help us to operationalize our strategy and make it measurable. In 2013 we adopted 
an ambitious program of non-financial objectives that comprises both new and further developed sustain-
ability ­targets along the value chain (see Chapter 1.3 “Targets and Performance Indicators”). This replaces 
our previous program of targets for 2015, whose degree of achievement is elaborated on in detail online. 
Internal Group regulations ensure the implementation of our sustainability principles in business 
­operations. These principles are realized through corresponding management systems, regulations and 
processes at the subgroup level.
 Online annex: 3-6-4
The internal Bayer Group regulations include above all the “Sustainable Development Policy,” our  
“Human Rights Position,” the “Corporate Compliance Policy,” our “Supplier Code of Conduct,” the 
“Responsible Marketing & Sales Policy,” our “Directive on Process and Plant Safety,” and positions, 
for example, on the key issues of climate, water and biodiversity.
Integration of Sustainability at Bayer
[Graphic 3.6.0-3]
Sustainability in the subgroups and service companies (incl. regions and countries)   
Sustainability in the Group
• Strategies, objectives and directives
• HSEQ management systems and audits
Steering
 
 
 
Member of the Group 
Management Board 
­responsible for  
Technology, Innovation 
and Sustainability *
Environment & Sustain-
ability Department 
in the Corporate Center
Supported by bodies  
such as
• Sustainable Develop-
ment Committee
• HSEQ Committee
• Bayer Safety Council
Relevant Group  
positions, such as on       
 
 
Sustainable  
Development
Human Rights
Corporate  
Compliance
Responsible  
Marketing & Sales
Responsible  
Lobbying
Measurement and  
documentation  
of the sustainability  
performance          
Targets /indicators
Sustainability reporting 
in the Annual Report with 
independent assurance
Engagement          
 
UN Global Compact
Responsible Care
WBCSD **
Global Reporting  
Initiative (GRI)
• Responsible Care programs and initiatives
• Opportunity and risk management
* 	 from April 30, member of the Group Management Board responsible for Human Resources, Technology and Sustainability
**	World Business Council for Sustainable Development 
Group Strategy    
Mission: “Bayer: Science For A Better Life” // LIFE Values
 	See Chapter 1.3
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7. Employees
To underline our mission as a sustainably operating company, we have committed to internationally 
­recognized sustainability initiatives such as the U.N. Global Compact and the Responsible Care™ initia-
tive, and we participate globally in leading (industry) forums such as the World Business Council for 
Sustainable Development (WBCSD). 
7. Employees
Sustainable human resources policy
Bayer pursues a sustainable human resources policy. The objectives and principles are based on our 
corporate values, known by the acronym LIFE, which are valid throughout the world. LIFE stands for 
Leadership, Integrity, Flexibility and Efficiency. These values encapsulate the core elements of our cor-
porate culture, which combines a strong focus on performance and development with a high degree of 
social responsibility. At the same time, they are a simple and practical guide for employees in their work. 
The LIFE values are therefore firmly integrated into our global performance management system, which 
covered more than 77,000 employees, i.e. about two-thirds of our workforce, in 2013. Participation is 
mandatory for all managerial employees, which means they are assessed partly according to how well 
they apply the four corporate values in the pursuit of their career goals. This factor can therefore affect 
their compensation. Of the employees whose performance was assessed regularly using this system, 
40% were female and 60% were male.
Employee data
On December 31, 2013 Bayer had 113,200 employees worldwide, 107,700 of whom had permanent 
­employment contracts, while 5,500 had temporary contracts.
	 www.annual­
report2013.bayer.
com/­en/commit-
ment-sustainability
Employee Data
[Table 3.7.1]
 
Dec. 31, 2012
Dec. 31, 2013
 
in FTE
in FTE
Employees by region
 
 
Europe
52,300
53,600
North America
15,300
15,200
Asia / Pacific
26,200
28,000
Latin America / Middle East / Africa
16,200
16,400
Employees by corporate function
 
 
Production
45,700
45,800
Marketing and distribution
42,300
44,500
Research and development
12,900
13,700
General administration
9,100
9,200
Total
110,000
113,200
Apprentices
2,500
2,500
 
 
%
 
 
%
Proportion of women in senior management
23
25
Proportion of full-time employees with contractually agreed working time 
not exceeding 48 hours per week
 
100
 
100
Proportion of employees with health insurance
94
95
Proportion of employees eligible for a company pension plan  
or company-financed retirement benefits
 
70
 
72
Proportion of employees covered by collective agreements on pay and conditions
53
55
2012 figures restated
The number of employees on either permanent or fixed-term contracts is stated in full-time equivalents, with part-time employees included 
on a pro-rated basis in line with their contractual working hours.
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7. Employees
 Online annex: 3-7-1­
Thus the headcount showed a slight increase of 2.9% from the prior year. In Germany we had 35,300 
employees (2012: 34,600), who made up 31.2% of the Group workforce. HealthCare had 56,000 employ-
ees, CropScience 22,400 and MaterialScience 14,300. The remaining 20,500 employees, reported in the 
reconciliation, worked for the service companies or Bayer AG. In addition there were 2,500 (2012: 2,500) 
 apprentices on the closing date who are not included in the Group total.  
In 2013 the Group-wide fluctuation rate, which includes employer- and employee-driven terminations, 
retirements and deaths, was unchanged at around 14%.
 Online annex: 3-7-2
Employees * by Employment Status, Region and Gender in 2013
[Table 3.7.1-1]
Permanent employees
Temporary employees
Women
Men
Total
Women
Men
Total
Europe
18,400
32,400
50,800
1,400
1,400
2,800
North America
5,700
9,300
15,000
100
100
200
Asia / Pacific
9,200
17,200
26,400
400
1,200
1,600
Latin America / Africa / Middle East
5,800
9,700
15,500
400
500
900
Total
39,100
68,600
107,700
2,300
3,200
5,500
*	The number of employees on either permanent or fixed-term contracts is stated in full-time equivalents (FTE), with part-time employees 
included on a pro-rated basis in line with their contractual working hours.
Employee Fluctuation *
[Table 3.7.1-2]
Women
Men
Total
%
%
%
Region
Asia / Pacific
21.8
16.7
18.5
Europe
10.7
9.1
9.7
Latin America / Africa / Middle East
16.7
15.2
15.8
North America
20.0
18.4
19.0
Total 
15.4
13.1
14.0
*	headcount
Employees by Segment	
[Graphic 3.7.1]
56,000 (54,800)
HealthCare
Pharmaceuticals 38,000 (37,200)
Consumer Health 18,000 (17,600)
22,400 (20,800)
CropScience
20,500 (19,900)
Reconciliation 
14,300 (14,500)
MaterialScience
2012 figures restated 
2012 figures in parentheses
113,200
(110,000)
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7. Employees
On a small scale, we also use personnel from staffing agencies in certain circumstances.
 Online annex: 3-7-3
To enable us to respond flexibly to short-term personnel requirements caused, for example, by  
fluctuations in the order situation, temporary projects or long-term illness, in Germany we use  
personnel from staffing agencies. We only work with agencies whose employees are covered by a  
valid collective bargaining agreement entered into by organizations that belong to the German trade 
union confederation (DGB). In this way, we make sure that they receive the collectively agreed rates  
of pay. The proportion of temporary staff employed in Germany varies between 1% and 3% of the  
total workforce. Personnel from staffing agencies do not play a significant role at Group companies 
outside Germany either. Separate global data are not available.
Talent management and feedback culture
We are convinced that systematic people development is exceptionally important for the future success 
of our company. Group-wide talent management, in other words measures and tools to further our 
­employees’ professional and personal development, is therefore a key element in our human resources 
policy. The basic principle is that every employee has his or her own individual strengths and talents that 
deserve recognition and development in the workplace. 
Vacancies in the Bayer Group, from non-managerial right up to senior management level, are advertised 
via a globally accessible platform. In 2013 we posted over 9,900 vacancies in 61 countries via this plat-
form.
We believe regular feedback is necessary for the continuous development of our employees and our 
­organization and that it helps us adapt to changing requirements. Alongside our performance manage-
ment system, we use 360° feedback. This insight from colleagues and business associates is designed to 
foster the performance and leadership behavior of our employees and support their professional devel-
opment. 
Our most important feedback tool at the corporate level is our Group-wide employee survey. Every two 
years, this gives us competent feedback from our employees on our strategy, culture and working condi-
tions. Since the last survey in 2012, we have launched a variety of initiatives and improvements world-
wide to overcome the shortcomings identified in specific areas. The next employee survey is scheduled 
for spring 2014.
 Online annex: 3-7-4
Many of the initiatives introduced throughout the world in 2013 aim to improve the feedback culture 
in specific organizational units and involve employees more closely in decision-making processes. 
The spectrum ranges from a new target picture for the 4,900 employees at Bayer Business Services 
through programs to recognize outstanding achievements by employees, and the introduction of 
home offices, to new information and dialogue offerings in many areas of the company and innovative 
video blogs for members of the field force.
Our Development Dialogue is an ideal link between feedback, which is based on the present situation, 
and long-term career planning. Employees discuss their strengths and development needs, career 
­expectations and aspirations with their direct supervisor with the objective of agreeing on a personal 
­development plan to enable them to realize their potential within the company. 
Once a year our managers are required to conduct the Development Dialogue with their employees – 
last year this was done nearly 24,000 times throughout the Group. The results are documented in our 
global employee portal.
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7. Employees
Advancing knowledge and leadership skills
Fostering our employees’ “lifelong learning“ is a central element of both people development and the 
management of demographic change at Bayer. Our aim is to empower all employees to continuously re-
fresh and expand their knowledge and skills in all phases of their working lives.
 Online annex: 3-7-5
Our education and training activities comprise a wide range of work-related programs that enable 
employees to broaden and update their specialist knowledge and abilities or acquire new skills, for 
example by learning a language or acquiring leadership competencies. In addition, the goal of the 
Bayer Academy, which launched its first modules in 2013, is to provide systematic training for man-
agers throughout the Bayer Group and to harmonize function-related continuing education and  
training worldwide and make it available to all employees.
At the heart of our employee training concept is the Bayer Academy, within which the extensive range  
of continuing education opportunities is systematically organized. The Academy’s Group-wide roll-out 
began in 2013. It comprises two principal areas, a Leadership & General Management Academy for man-
agers and various functional academies focusing on a wide range of topics and corporate functions. The 
functional academies are geared specifically to the continuous professional development of our employ-
ees. In many countries, including important Emerging Markets such as China and Brazil, national 
­versions of the Bayer Academy are already fully operational.
 Online annex: 3-7-6
The aim of the Leadership Academy introduced in 2013 is to place management training on  
a systematic footing and establish a common understanding of leadership throughout the Bayer 
Group. In the first year, more than 2,500 employees worldwide attended the management training 
seminars run by the Leadership Academy.
 
Examples of Continuing Education
[Table 3.7.1-3]
Bayer Academy
Leadership training, general management training
Global / Group-wide
Knowledge and skills training  
in specific areas
Introduction to the company
Leadership skills
Communication, working methods and project management
Business administration and law
Marketing, sales and customer focus
Languages and intercultural skills
Information technology and SAP
Research, production and technology
 
 
 
 
 
 
 
Global / Group-wide
Group focuses
Corporate compliance, anticorruption
Human rights
Changes in technology (Personalized Workplace Program)
Supplier management / Supplier Code of Conduct
 
 
 
Global / Group-wide
Subgroup programs
Occupational safety (PEGASUS)
Fit in Production (FIP) 
 
Global / subgroup-wide
Continuing education offerings for employees  
outside worktime
  
Local / national
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7. Employees
Functional academies harmonize function-specific ongoing training offerings across the Bayer Group 
and make them available to all employees in the function. The academy concept therefore also  
provides impetus for the internationalization of our ongoing training programs and for sharing knowl-
edge and experience within functions. One good example is the new Bayer HR Academy for human 
resources professionals, which started operating in November 2013.
Our management training also addresses important subject areas.
 Online annex: 3-7-7
To strengthen the Leadership component of LIFE and promote performance orientation in the  
company, we have developed a Group-wide training program called “Enhancing Performance & Feed-
back Culture (EPFC)”. This is designed to support our managers in regularly giving their employees 
candid and constructive feedback on their work and conduct. The goal is to establish a true feedback 
culture throughout the enterprise that promotes individual strengths, addresses existing deficits and 
thus enhances employees’ personal and professional development over the long term. EPFC training  
is mandatory for employees with personnel responsibility and has now been completed by almost 
13,000 managers worldwide. Two years after its introduction, there has been a clear increase in the 
ability and willingness of our managers to give a differentiated evaluation of their employees’ capabil-
ities in the annual Performance Management Process.
Innovation ranks alongside feedback and diversity as part of our corporate culture. A new workshop 
format, “Leading Innovation,” has therefore been added to our management training on aspects of 
strategic corporate development to foster individual innovative capability. Since the introduction of 
this series of workshops in 2012, it has been used to train approximately 570 members of the Group 
Leadership Circle and other selected managers in the strategies and methods of effective innovation 
management. 
Harmonization of our employee training concept in the Bayer Academy also helps us to better report on 
participation rates. We currently compile data on the main training activities in the twelve largest coun-
tries through our global training reporting system. Last year, employees in these countries received be-
tween eight and 42 hours of continuing education and training according to need. The average was 17.8 
hours per employee across these twelve countries, with women taking an average 23.3 hours of training 
and men 18.5 hours. These averages do not include figures for the United States or Japan as statutory 
regulations preclude differentiation by gender in these countries. 
Employee compensation and benefits
An important principle of our human resources policy is linking employees’ compensation to their 
­performance and enabling them to share in the company’s success. Regular benchmarking against com-
petitors and a globally standardized system help us to set basic salaries in line with the demands and 
­responsibilities of each position. These salaries are supplemented by performance-related compensation 
components and extensive ancillary benefits. We attach great importance to avoiding gender-based 
­inequality, providing fair compensation worldwide and informing our employees transparently about the 
overall structure of their compensation.
 Online annex: 3-7-8
Our compensation system does not differentiate between men and women. At Bayer, individual  
salaries are based on each employee’s personal and professional abilities and the level of responsibility 
assigned to them. At managerial level, this is based on uniform evaluation of all positions throughout 
the Group using the internationally recognized Hay method. In areas of the Group and jobs that fall 
within the scope of binding collective bargaining agreements, there are no differences in pay based 
on gender either. This also applies for the compensation of apprentices.
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7. Employees
In the Emerging Markets and developing countries, too, compensation is aligned to local market  
conditions. In keeping with our Human Rights Position, our aim is to pay our employees adequate 
salaries that ensure they and their families have an appropriate standard of living. In all Emerging 
Markets where Bayer has a significant presence, the lowest salary paid by Bayer is at least in line 
with the applicable minimum wage and in most cases higher.
To provide a transparent overview of their compensation, including all additional benefits provided  
by the company and employer pension and social insurance contributions, some 29,000 employees 
worldwide now receive an extensive annual compensation and benefits statement containing all  
relevant information. We intend to extend this service to employees in a total of 17 major countries in 
the coming year.
Under our Group-wide Short-Term Incentive program alone, variable one-time payments totaling more 
than €650 million are earmarked for our employees for 2013. In addition, various employee stock pro-
grams enable our staff to purchase shares in Bayer at a discount. In many countries, such employee 
stock programs are included in our extensive range of ancillary benefits, giving employees an additional 
opportunity to share in the company’s business success. We also offer senior and middle managers 
throughout the Group uniform stock-based compensation programs known as “Aspire” (see Note [26.6] 
to the consolidated financial statements). These are based on ambitious earnings targets and – in the 
case of Group Leadership Circle members – require an appropriate personal investment in Bayer stock. 
In 2013 our personnel expenses amounted to €9,430 million (2012: €9,194 million). The increase was 
mainly due to higher employee bonuses and salary adjustments.
 Online annex: 3-7-9
Human rights and social responsibility
Our social responsibility as a company and an employer is rooted in an unreserved commitment to 
­support and foster human rights in our sphere of influence. Bayer’s Human Rights Position is set out 
in a binding Group-wide regulation. We respect the United Nations’ Declaration of Human Rights  
and are a founding member of the UN Global Compact. Bayer’s mission statement, LIFE values and 
­Corporate Compliance Policy commit all employees around the world to fair and lawful conduct 
­toward staff, ­colleagues, business partners and customers. 
To enhance our employees’ awareness of the importance of human rights in their day-to-day activities, 
in 2013 we organized a variety of training seminars on the main aspects of our Human Rights Position. 
Courses were offered in some 80 countries and were attended by approximately 90,000 employees, 
more than 75% of our workforce. 
The compliance organizations at the Group and country levels monitor compliance with the relevant 
­directives. If there are signs of violation, employees can contact their Compliance Officer at any time, 
anonymously if required. For further details see Chapter 18.3 “Compliance.”
Personnel Expenses and Pension Obligations
[Table 3.7.1-4]
 
2009
2010
2011
2012
2013
 
€ million
€ million
€ million
€ million
€ million
Personnel expenses
7,776
8,099
8,726
9,194
9,430 
of which pension and social security contributions
1,490
1,623
1,672
1,823
1,845 
Pension obligations *
15,931 
17,699 
19,310
22,588
20,682 
2012 figures restated 
*	present value of defined-benefit obligations for pensions and other post-employment benefits
 	Consolidated  
	Financial  
	Statements 
	Note 26.6
 	See Chapter 18.3
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7. Employees
Our social responsibility is also reflected in our approach to necessary changes and restructuring 
­measures. In Germany, which remains the company’s largest operational base with 35,300 employees, 
business-related dismissals are excluded through the end of 2015 for a large proportion of employees 
under an agreement with the employee representatives. 
The reduction of 700 positions at Bayer MaterialScience worldwide in the next four years, which was an-
nounced in September 2013, will also be undertaken in a socially compatible manner wherever possible, 
for example by utilizing natural fluctuation and avoiding business-related dismissals. 
Full and timely information for employees is provided on significant operational changes in compliance 
with the relevant national and international obligations.
 Online annex: 3-7-10
The Human Resources and Communications departments work together closely to ensure timely  
communication of far-reaching changes through a wide range of carefully coordinated media. In  
Germany we combine providing timely information to the employee representatives in the Economics 
Committee of the company concerned with coordinating and jointly deciding on the proposed  
communication measures. 
Our human resources policy also includes ensuring a high level of social protection. For example, nearly 
all employees either have statutory health insurance or can obtain health insurance through the compa-
ny. 72% of employees also have access to a company pension plan. In 2013, we once again expanded or 
improved the quality of the benefits provided for employees in many countries.
 Online annex: 3-7-11
In 2013 we achieved further improvements for our employees in the Czech Republic, Hong Kong, 
Bangladesh, Morocco, the Central American countries and Mexico in the scope and terms of their 
health insurance.
We also introduced company pension plans in a further four countries and adjusted the terms of  
the established pension plans in favor of the employees in four European countries and one Asian 
country. 
Health Insurance and Pension Plans by Region 
[Table 3.7.2]
Health insurance *
Pension plans **
2012
2013
2012
2013
 
%
%
%
%
Region
 
 
 
 
Asia / Pacific
90
92
35
39
Europe
97
99
86
87
Latin America / Africa / Middle East
94
94
52
55
North America
92
89
96***
97
Total
94
95
70***
72
*			government- or employer/employee-funded 
**		programs to supplement statutory pension plans  
***	2012 figures restated: the figures for North America and the total we published in our Annual Report 2012 were too low. This was due to 
subsequent report updates from the United States resulting from a divergent ­understanding of what had to be reported under “Company 
Pensions.” 
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7. Employees
The working conditions for 55% of our employees are governed by collective or company agreements. 
The contractually agreed working hours of our employees do not exceed 48 hours a week in any country. 
At many smaller country companies, the interests of the workforce are represented by elected employee 
representatives who have a right to be consulted on certain personnel-related decisions. China is a good 
example of the continuous expansion of the consultation with labor unions in the Bayer Group.
 Online annex: 3-7-12
At our companies there, elected councils representing nearly 10,000 employees are in place. This 
means that more than 90% of our employees in China are now represented by the local union. 
In 2013 we stepped up our collaboration with the union in China and extended information rights  
of employee representatives. In the future, quarterly meetings will be held with employee representa-
tives at our six largest companies in this country. Union representatives are consulted before the  
introduction of major ancillary wage benefits. The local management has also given an undertaking  
to inform employee representatives in advance of any planned capacity adjustments and restructuring 
activities. For two companies, formal collective agreements were concluded with the union in 2013. 
Negotiations on similar collective agreements for three other Bayer companies in China should be 
completed in the near future.
Our understanding of our role as a socially responsible company includes a commitment to helping dis-
advantaged individuals. We employ a total of 2,800 people with disabilities in 28 countries. Most of them 
work for our companies in Germany, where they made up 4.5% of the workforce in 2013. More than 
32% of the 1,600 disabled employees there were female. In the year under review we received public 
accolades in Germany and the U.K. for our initiatives to support people with disabilities and disadvan-
taged young people, some of which have been running for many years.
 Online annex: 3-7-13
In 2013 the U.K. Department of Work and Pensions’ “Double Tick” symbol for exemplary integration 
of disabled people was awarded to our site in Newbury. This accreditation rewards Bayer’s voluntary 
commitment to implement a defined list of measures for the employment and support of people with 
disabilities. 
In Germany, our program to help disadvantaged school leavers prepare for vocational training  
celebrated its 25th anniversary. Bayer has been running this special one-year program for socially 
and educationally disadvantaged young people since 1988. More than 1,600 youngsters have  
completed the program over the years, and 80% of them subsequently enrolled for vocational train-
ing in science or technology. In 2013 Bayer accepted another 137 young people into this highly  
acclaimed program.
Percentage of Employees Covered by Collective Agreements, by Region 
[Table 3.7.3]
Percentage of employees covered 
by collective agreements,  
especially on compensation  
and working conditions*
Percentage of full-time  
employees with contractually 
agreed working weeks  
of max. 48 hours
2012
2013
2012
2013
 
%
%
%
 %
Region/Area
 
 
 
 
Asia / Pacific
15
24
100
100
Europe
87
88
100
100
Latin America/Africa/Middle East
46
45
100
100
North America
5
5
100
100
Total
53
55
100
100
*	collective or company agreement
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7. Employees
Diversity and internationality
Workforce diversity is vital for our company’s future competitiveness. This is particularly true for our 
management. Diversity improves our understanding of changing markets and consumer groups, gives 
us access to a broader pool of talented employees, and enables us to benefit from the enhanced innova-
tive and problem-solving abilities that are demonstrably associated with a high cultural diversity within 
the company. We pursue this aim especially in the emerging countries of Asia and Latin America, where 
we intend to significantly increase the proportion of local people among our managerial employees in 
the medium term. Of the members of our Group Leadership Circle, in which 31 nationalities are current-
ly represented, around 67% come from the country in which they are employed. The Bayer Group cur-
rently employs people from 144 countries.
Special training for members of the management team is one focus of our activities to achieve greater 
employee diversity.
 Online annex: 3-7-14
Since 2012 a workshop format has been used to raise the awareness of senior managers and their 
management teams of the strategic benefits of diversity. The workshop outcomes are consolidated in 
an action plan for each organizational unit.
We also want to empower our managers to form teams that incorporate the principles of diversity and 
to lead them successfully across the cultural divide. To this end a new seminar on “Leading Across 
Cultures and Genders” was launched worldwide in 2013. It was attended by some 670 managers from 
all levels.
Training for senior management members is supported by supplementary initiatives in the countries 
and subgroups. Since last year, diversity and inclusion officers in the Middle East have been driving 
forward local initiatives.
Another focus of our diversity strategy is on improving the gender balance, especially in management. 
We view a male / female ratio of between 30 to 70 and 70 to 30 as acceptable and have therefore set our-
selves the voluntary target of raising the proportion of women on the five highest management ­levels 
throughout the Group toward 30% by 2015. Women currently account for 25% of employees in this 
management segment worldwide, while men account for 75%. Since we set this target in 2010, the pro-
portion of women in managerial positions has therefore risen by 4 percentage points. The ratio of female 
to male employees in the Bayer Group as a whole was 36.5% to 63.5%.
 Online annex: 3-7-15
Bayer Group Workforce Structure*
[Table 3.7.3-1]
 
Women
Men
Total
Senior management
2,200
6,800
9,000
Junior management
9,600
15,400
25,000
Skilled employees
29,600
49,600
79,200
Total
41,400
71,800
113,200
Apprentices
800
1,800
2,600
* number of employees converted into full-time equivalents (FTE)
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7. Employees
Our employees’ lifestyles are as diverse as the people themselves. Flexible worktime arrangements help 
employees to balance their employment with their personal or family lives by helping them to better plan 
their leisure time, enabling working parents to make equal use of career opportunities in the company 
and helping the growing number of employees who also care for close relatives. Bayer offers its employ-
ees a variety of such opportunities in all countries. We continued to expand our range of employee bene-
fits in this area worldwide in 2013. 
 Online annex: 3-7-16
A General Works Agreement concluded in Germany in 2013 means that employees at the large Group 
companies who care for close relatives will in the future receive support well in excess of the statutory 
provisions. This includes extensive professional advice and 10 days’ paid leave of absence for any 
sudden urgent need for nursing care in the family. Bayer employees can also decide to switch to part-
time work to look after a needy relative for up to three years and reduce contractual working hours by 
up to 50% of full-time employment.
In 2013 the Bayer Group had 7,850 part-time employees, around 6.8% of the total headcount. 
 Online annex: 3-7-17
By the end of 2013 around 77% of employees in Germany who took statutory parental leave or partici-
pated in the company’s more far-reaching “Family & Career” program over the past five years had re-
turned to work. Of the returnees, roughly 60% were women and 40% were men. Since parental leave 
regulations vary widely from country to country, we only compile data for Germany.
 Online annex: 3-7-18
The next table shows the number of employees who have returned after the standard statutory parental 
leave program and the Bayer “Family & Career” model since 2009. It also shows the number of male 
and female returnees and of employment contract terminations at the end of employees’ parental 
leave. It covers all employees in Germany who have taken parental leave since January 1, 2009. 
Percentage of Part-Time Employees by Region 
[Table 3.7.3-2]
 
Women
Men
Total
 
%
%
%
Region
 
 
 
Asia / Pacific
4.7
0.8
2.2
Europe
21.3
7.5
12.8
Latin America / Africa / Middle East
0.2
0.0
0.1
North America
1.9
0.2
0.8
Total
11.9
3.8
6.8
Employees Returning from Parental Leave Using Germany as an Example 
[Table 3.7.3-3]
 
%
Absolute
Total no. of employees who have taken parental leave since 2009 
100
2,361
Returnees by 2013
77.3
1,824
Women
61.5
1,453
Returned
65.5
951
Terminated
7.3
106
Men
38.5
908
Returned
96.2
873
Terminated
0.8
7
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7. Employees
Managing demographic change and recruiting young people
Demographic change, in other words, the steady reduction in the birth rate and the aging population,  
is a challenge for many industrialized countries. Economically, it involves both opportunities and risks. 
We have prepared forecasts of the age structure of the workforce in the entire Bayer Group up to 2020 in 
order to assess the impact of this issue on our company. Currently, we are not facing an acute shortage 
of skilled staff. Nevertheless, we are already addressing the foreseeable consequences of demographic 
change by stepping up our activities to recruit staff, especially from the younger generation, retain 
knowledge in the company and foster the health of our employees worldwide.
Bayer endeavors to appeal to the most talented people worldwide and to retain employees for long 
­periods by providing good development opportunities, a modern working environment and competitive 
compensation. In 2013 we again attracted more than 4,900 academically qualified specialists and man-
agers worldwide. We recruited approximately 660 university graduates in Germany, 520 in Russia, about 
420 in Brazil and more than 340 in India. In 2013 we hired more than 19,400 new people across all oc-
cupations throughout the Group.
 Online annex: 3-7-19
Our success in recruiting employees is attributable to our attractiveness as an employer, which was 
once again confirmed by numerous awards in 2013, and proactive recruiting activities at the local level. 
 Online annex: 3-7-20
Bayer has longstanding contact with leading universities in almost all countries in order to raise  
talented students’ awareness of the wide-ranging opportunities it offers. In China, for example, we 
currently cooperate with more than 40 universities and offer up to 500 students a year an opportunity 
to undertake internships in all areas of the company. In addition, we offer students in China training 
programs, scholarships and technical support for their dissertations.
New Hires by Region * 
[Table 3.7.3-4]
 
Women
Men
Total
Region
 
 
 
Asia/Pacific
2,668
4,109
6,777 
Europe
3,050
3,332
6,382 
Latin America / Africa / Middle East
1,093
1,669
2,762 
North America
1,256
2,265
3,521 
Total
8,067
11,375
19,442 
*	converted into full-time equivalents (FTE)
	 WWW.BAYER.
COM /EN /AWARDS.
ASPX
3.0
> 60
%
Age in years
0.2
< 20
50 - 59
22.2
15.7
20 - 29
40 - 49
29.1
30 - 39
29.8
Employees by Age Group
[Graphic 3.7.2]
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7. Employees
In recent years, we have steadily extended our collaboration with universities in Brazil as part of our 
recruiting strategy. Around 260 students in this country now take part in our trainee and internship 
program. These activities pay off: in 2013 Brazilian students ranked us among their 100 “dream  
employers,” while upcoming health care professionals see us as the second most attractive company 
in the country. In Canada, our internship program was rated by the Talent Egg online portal as one of 
the best in the country. In Turkey, we enabled more than 110 students to do their mandatory intern-
ships in various parts of our company. Overall, we offered more than 2,900 demanding professional 
internships to students around the world in 2013.
Alongside hiring university graduates, Bayer’s training programs for young people are among the most 
important steps the company takes to guard against a possible shortage of specialists due to demo-
graphic change. Once again in 2013, more than 900 young people entered training programs for more 
than 30 occupations at Bayer’s sites in Germany. At the same time, we aim to utilize and develop the 
­potential of older employees even more effectively. Passing on knowledge from the older to the younger 
generation is the aim of the Bayer Senior Experts Network, known as BaySEN for short. Together with 
our extensive on-the-job training offering, we thus ensure that the knowledge of our employees is up-to-
date and is shared across generations.
Group-wide we offer our employees a wide variety of benefits to promote their health. These range from 
medical checkups and on-site medical services to sports opportunities inside and outside the company 
and the provision of advice and reintegration assistance after recovery from an illness. In this way we 
also contribute significantly to maintaining long-term employability, which is of growing importance as 
many countries are raising the retirement age in light of demographic change. In 2013, we once again 
launched a wide range of additional initiatives to maintain and improve the health of our employees.
 Online annex: 3-7-21
Group-wide initiatives to foster employees’ health and maintain their employability in view of the  
rise in the retirement age include the 2010 General Works Agreement on lifetime working and  
demographic change in Germany. This innovative agreement contains measures to reduce the  
workload of older shift workers, ease the return to work after long-term illness and an extensive 
health screening program for all employees. Including the collectively agreed contribution to the  
demographic change fund, in 2013 we increased the funding available for measures under this  
agreement to €8 million per year.
The type and scope of the health promotion programs offered by Bayer Group companies worldwide 
varies depending on national health care provision and access to it. In many countries, preventive 
health care measures are a discretionary benefit provided by the company, while in others they are 
required by law. Preventive programs are often organized in cooperation with external physicians or 
organizations. The following examples from 2013 are only a small selection of the very broad global 
offering.
In 2013 HealthCare’s country organizations continued to increase the quality and number of health 
care programs. For example, talks and advisory events on a range of health issues were held at  
many sites in Germany. In July, the “Heart LIFE” program was launched in Socorro, Brazil, to raise 
employees’ awareness of cardiovascular diseases and highlight preventive measures. This pilot  
project is to be extended to further sites in 2014. In collaboration with a health insurer in Finland,  
we launched health coaching for employees who are already suffering health problems or who have 
high health risks in order to help them mitigate individual risk factors.
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8. Procurement and Production
In 2013 CropScience also introduced numerous measures and initiatives to foster the general health 
of employees. Topics such as nutrition, addiction prevention, fitness and relaxation were addressed 
through special programs at many sites worldwide.
Health checks were also offered at many sites, for example on Bayer Safety Day or special health 
days, and sometimes as part of company-wide health weeks. Examples in 2013 were Ecuador, Brazil 
and Australia.
Very extensive occupational health programs were offered at many MaterialScience sites in 2013.  
At its locations in the Lower Rhine region of Germany, MaterialScience conducted a health survey  
to make more targeted use of occupational health management measures in the areas of exercise,  
relaxation skills for shift workers and stress management. The three MaterialScience sites in Shanghai 
organized a comprehensive program of events on women’s health in 2013. 
The “B Well” program in the United States is an integrated health and wellness program for all Bayer 
employees. It helps employees play an active role in promoting their health. In 2013 the focus was on 
preventive health screening and personal advice, supplemented by programs on stress prevention, 
weight management, exercise and preventing diabetes. 
8. Procurement and Production
Supplier management
Bayer’s procurement volume in 2013 was approximately €18.7 billion (2012: €18.1 billion). Goods and 
services were procured from some 107,000 (2012: some 101,000) suppliers in approximately 138 
(2012: 125) countries and recorded in the Group-wide reporting system. To cover specific require-
ments as efficiently as possible, each subgroup procures direct and production-related materials itself, 
while indirect and non-production-related goods and services are sourced in each case by the organi-
zational unit that is their major user within the Bayer Group. Our Group-wide procurement strategy 
and application of the major-user principle enable us to realize synergy potentials in the form of stan-
dardization, volume pooling and streamlining of negotiations.
The procurement volume in Germany, the United States and Japan in 2013 accounted for nearly 67%  
of the expenditures in the countries of the OECD (Organisation for Economic Co-operation and Develop-
ment), or about 54% of the Bayer Group’s total procurement spend. Brazil, India and China together ac-
counted for about 72% of the expenditures in the non-OECD countries or about 14% of the total spend. 
 Online annex: 3-8-1
Number of Suppliers and Procurement Spend by Economic Region 
[Table 3.8.0-1]
 
 Suppliers
 Spend
 
%
%
OECD countries
71
81
Non-OECD countries
29
19
Procurement Spend in OECD and Non-OECD Countries
[Table 3.8.0-2]
 
%
%
%
%
 
OECD countries
Germany 
27.4
United States 
21.3
Japan 
5.7
Other 
26.3
 
Non-OECD countries
China 
9.0
Brazil 
2.6
India 
2.4
Other 
5.3
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8. Procurement and Production
Sustainability in procurement
Bayer regards adherence to sustainability standards within the supply chain as a crucial factor in the val-
ue chain. By acting responsibly in collaboration with our suppliers, we aim to minimize risks and create 
stable, long-term business relationships with our partners. It is also an important strategic lever for Bay-
er in safeguarding both its global competitiveness and the supply of materials and services. For this rea-
son, the company applies not just economic standards, but also environmental, social and corporate gov-
ernance (ESG) standards in choosing new suppliers or continuing its relationships with existing ones. 
These standards are defined in Bayer’s Supplier Code of Conduct, which generally forms the basis for 
our collaboration with suppliers. It is legally binding and integrated into electronic ordering systems and 
contracts throughout the Group. The Supplier Code of Conduct is based on the principles of the U.N. 
Global Compact and our Human Rights Position. 
 Online annex: 3-8-2
To participate in IT-based bidding processes, suppliers must give a binding assurance before  
submitting an offer in our supplier management system that they acknowledge Bayer’s Supplier 
Code of Conduct. This creates an important foundation for a business relationship aligned to  
sustainability principles.
Sustainability assessments and audits of our suppliers 
We track our suppliers’ adherence to the Code of Conduct by monitoring their sustainability perfor-
mance. This is done partly on the basis of on-site audits and partly through online supplier assessments 
carried out by a leading web-based platform for sustainability performance monitoring (EcoVadis).  
The assessments are based on a web-based, modular questionnaire completed by the supplier, coupled 
with accompanying verification documents and 360° screening. Suppliers are selected for these assess-
ments based on a combination of country and material risks and procurement volume.  
To leverage synergies in the monitoring of suppliers’ sustainability performance, we participate in  
two industry initiatives – the “Pharmaceutical Supply Chain Initiative” (PSCI) and “Together for Sustain-
ability” (TFS), an initiative of the chemical industry that was co-founded by Bayer. The focus of these 
­initiatives is on standardizing sustainability aspects in the relevant industries. Assessments and audits 
are also exchanged among the members, giving us access to additional evaluations of suppliers that also 
work with Bayer.
 Online annex: 3-8-3
In both initiatives, sustainability assessments and audits of suppliers are exchanged through IT  
platforms. This minimizes the administrative burden for both suppliers and the member companies. 
Members of the TfS initiative initiated a total of over 1,850 assessments and successfully completed 
150 audits during the one-year pilot phase from July 2012 through June 2013. In the PSCI initiative, 
the first joint pilot audit program was successfully completed and evaluated in 2013. Both initiatives 
focus not only on performing audits, but also on providing support and training for suppliers.
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Under the Bayer Audit Program, we carry out supplier audits together with an external, independent 
partner, applying the standard of the respective industry initiatives in which we participate in order to 
benefit from synergies. We also obtain further audits of Bayer suppliers on an exchange basis as part of 
our collaboration with the members of the psci and tFs initiatives. In addition, Bayer auditors perform 
inspections focusing on health, safety, environmental protection and sustainability. An overview of the 
number of supplier assessments and audits:
 Online annex: 3-8-4
All assessment and audit results are thoroughly analyzed and documented. If deficiencies are found, the 
company develops action plans together with the respective suppliers to ensure that they observe social, 
ethical and environmental standards in the future. Where improvement needs have been identified, we 
work together continuously with our suppliers to achieve these improvements. As a result, we did not 
have to terminate any supplier relationship in 2013 for reasons related to sustainability performance.
Our assessments and audits accounted for 34% of the total procurement volume in the Bayer Group 
with regard to sustainability performance and 51% of the procurement volume in high-risk areas, which 
are defined by a combination of country and material risk. 
Benefits from the  
production network
Supplier Assessments 
[Table 3.8.0-3]
Bayer assessments via the EcoVadis platform
278
Assessments * by TfS ** members of suppliers that also work for Bayer
107
National assessments by Indian country company
243
*	 assessments exchanged via the EcoVadis platform as part of TfS initiative
**	Together for Sustainability (TfS)
Supplier Audits 
[Table 3.8.0-4]
Bayer audits with external auditors
41
Audits * by TfS ** members of suppliers that also work for Bayer
7
Audits * by PSCI ** members of suppliers that also work for Bayer
2
HSE *** / sustainability audits by Bayer auditors
97 
*	
audits exchanged as part of TfS and PSCI initiatives
**	 Together for Sustainability (TfS) / Pharmaceutical Supply Chain Initiative (PSCI)
***	Health, Safety, Environmental Protection
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Sustainability training for purchasers and suppliers
Training for purchasers in the Bayer Group includes attending courses on sustainability aspects of 
­procurement and our Code of Conduct. In 2013 we completely revised the training course on our sus-
tainability assessment process via our collaboration platform. 
 Online annex: 3-8-5
Our purchasers are thoroughly trained in the EcoVadis assessment process, with 243 purchasers  
attending the training course in 2013. The subgroups also provide their respective purchasers with 
supplementary information. For example, HealthCare has initiated a sustainability roadshow for  
various local purchasing units. The purchasing and quality functions in Brazil, India and China  
received extensive training in the supplier evaluation process. MaterialScience held both a global and 
a China-specific procurement meeting to provide information on sustainability.
We also offer training courses for our suppliers. Both the information material and the range of courses 
were updated and extended in 2013.
 Online annex: 3-8-6
The TfS initiative offers e-learning courses to provide suppliers with general information on the  
initiative and the audit process. The PSCI initiative likewise promotes continuing supplier develop-
ment by means of the comprehensive information provided on the PSCI website, and by organizing 
training events and conferences on subjects such as occupational safety.
As part of the training and information program for suppliers, Bayer’s company in India presents its 
BayBuy Awards at an annual Supplier Day. The awards for India’s most sustainable suppliers are 
based on the national sustainability assessments. 
The Supplier Days organized by HealthCare and MaterialScience at various locations in China in  
2013 focused on sustainability.
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Tackling child labor in the supply chain
For Bayer, responsible corporate governance includes recognizing and respecting human rights both in-
ternally and within our external sphere of influence. This includes the supply chain. Our Human Rights 
Position is unequivocal and includes a strict ban on child labor. We obligate our suppliers along our sup-
ply chain not to employ children. Particularly when working with suppliers in developing countries or 
emerging markets, we take care that they are not using child labor – which is still widespread in these 
regions.
For many years, CropScience has taken systematic action to prevent child labor in the seed supply chain 
in India through its Child Care Program. Teams from Bayer visit the fields used in cotton seed production 
at least six times each season in order to determine the age of the workers there. A separate organiza-
tional unit is responsible for this. Thanks to this stringent monitoring system, there are now only very 
few instances of child labor at our contractors, and we are closely tracking these cases. In India we have 
also carried out systematic field monitoring in vegetable seed production since 2009 and in the produc-
tion of hybrid rice seed since 2010. 
 Online annex: 3-8-7
The table shows how cotton seed production has developed since the main 2009 / 2010 season, 
based on the results of field monitoring. 
Suppliers who show that they are strictly observing our ban on child labor receive a bonus from  
Bayer along with training in agricultural efficiency. Graduated sanctions are applied for non- 
compliance. These range from written warnings to termination of the contract in the case of repeated 
non-compliance. Once a year, the audit firm Ernst & Young (India) conducts unannounced inspections 
of randomly selected farms. The two indicators highlighted in the table are used to measure the  
success of our extensive package of measures. 
Field Monitoring Results: Production of Cotton Seed in India
[Table 3.8.0-5]
Season *
 
Kharif 
2009 / 
2010
Rabi 
2009 / 
2010
Kharif 
2010 / 
2011
Rabi 
2010 / 
2011
Kharif 
2011 / 
2012
Rabi  
2011 / 
2012
Kharif 
2012 / 
2013
Rabi 
2012 / 
2013
Kharif **** 
2013 / 
2014
Standing acres **
1,683
172
2,152
335
2,771
542
3,857
389
3,618
Monitored acres ***
10,575
1,052
13,856
2,276
17,427
3,564
24,161
2,433
20,991
Labor details
 
 
 
 
 
 
 
 
 
Total laborers monitored
35,826
3,902
43,150
7,198
52,979
12,128
82,192
9,253
60,422
Proven child labor cases
22
2
14
0
18
0
21
0
18
Adult laborers
35,804
3,900
43,136
7,198
52,961
12,128
82,171
9,253
60,404
Child labor incidence per 
monitored acre
 
0.002
 
0.002
 
0.001
 
0
 
0.001
 
0
 
0.001
 
0
 
0.001
Child laborers as a percentage 
of total laborers
 
0.06%
 
0.05%
 
0.03%
 
0%
 
0.03%
 
0%
 
0.03%
 
0%
 
0.03%
*	
Kharif growing cycle: cultivation in the rainy season (summer) and harvest in the fall / Rabi growing cycle: cultivation in the fall and harvest in winter
**	
1 acre = 4,046.86 m²
***	 cumulated depiction of the area under cultivation monitored on the basis of control inspections performed (at least 6 per season)
****	as of Dec. 31, 2013
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8. Procurement and Production
We regard school attendance not only as essential for children’s development but also as a tool to 
drive the elimination of child labor. As an important part of the child protection program, our  
“Learning for Life” initiative consists of projects aimed at ensuring that children and young people 
get a proper education. Between 2005 and the end of June 2013, the “Learning for Life” educational 
programs benefited more than 5,500 children and young people. 
The Child Care Program has received broad public recognition. It is a multi-disciplinary project  
involving management, specialists from the Child Care Team, and staff from the seed production team 
and Corporate Communications, who play a key role in raising awareness for this issue.
Material and raw material inputs
As the subgroups’ business activities and therefore the materials they use differ fundamentally, each 
subgroup organizes the procurement of the materials needed for its own production operations. Sustain-
ability considerations are important when procuring raw materials, an example being the purchase of 
­renewables or minerals from conflict areas.
 Online annex: 3-8-8
Renewables so far have played only a secondary role in Bayer’s use of raw materials. We are using 
them more intensively when it makes technical, economic and ecological sense to do so.
At HealthCare, some hormones are synthesized by way of certain sterols or phytosterols generated  
as byproducts of the manufacture of vegetable oils from soybeans, canola or sunflowers. Palm oil or 
palm kernel oil is not used due to its low sterol content. We also purchase various steroids produced 
from diosgenin, which is mainly derived from yam root grown in China and other countries. In the 
fermentation process, we also use raw materials such as water, glucose, yeast, soybean starch, castor 
oil and corn steep water. Extracts of plant leaves (Centella asiatica) are used in some Consumer Care 
products. This plant is widely found in Asia and is not an endangered species.
MaterialScience is experimenting with the replacement of petroleum-based raw materials as part  
of its innovation and cooperation projects. For example, the subgroup is testing a biotechnological 
process that is based on the conversion of biomass by microorganisms and can supply material for 
the production of plastics. The use of carbon dioxide as a raw material for polyurethanes has already 
been successfully implemented at the pilot plant level – and the first results of an independent  
ecological assessment give grounds for optimism. 
At the international level, companies are increasingly obligated to disclose the origin of certain raw 
materials used in their products. “Conflict minerals” from the Congo region are one example. Bayer is 
currently investigating whether minerals from this region – such as tin, tungsten and tantalum ores or 
gold – could have found their way into our products through the supply chain. In parallel with these 
efforts, we are working on a special process for systematically investigating and evaluating potential 
suppliers of such minerals.
HealthCare
The Product Supply unit of HealthCare steers the subgroup’s entire supply chain, from raw material 
­procurement to manufacturing to product shipment, utilizing a global production network consisting of 
its own sites and those of subcontractors. The manufacturing of pharmaceutical products is subject to 
extraordinarily stringent quality standards. These standards are known collectively as “Good Manufac-
turing Practices” (GMP). Compliance with these requirements is regularly audited by internal experts, 
regulatory authorities and external consultants.
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The Pharmaceuticals segment generally procures the starting materials for the active ingredients of its 
prescription pharmaceuticals from external suppliers. To prevent supply bottlenecks and mitigate major 
price fluctuations, these starting materials and the intermediates we do not produce ourselves are gener-
ally purchased under global contracts and / or from a number of suppliers we have audited and approved. 
Our active ingredients are manufactured primarily at the sites in Wuppertal and Bergkamen, Germany, 
and Berkeley, California, United States. These substances are processed into finished products and 
packaged worldwide. Our medicines come in a wide range of delivery forms including solids such as 
tablets, coated tablets or powders; semi-solids such as ointments or creams; and liquid pharmaceuti-
cals such as those used in injections or infusions. Our hormonal contraceptives are supplied as sugar- 
or film-coated tablets or used in intrauterine systems (coils), for example. Formulating and packaging 
takes place in Berlin, Leverkusen and Weimar, Germany; Garbagnate, Italy; Beijing, China; São Paulo, 
Brazil; and Turku, Finland. Our hemophilia drug Kogenate™ is manufactured by a biotechnological pro-
cess at Berkeley, California, United States. Pharmaceuticals that we do not produce ourselves due to 
the use of special technologies are generally purchased under global contracts from suppliers we have 
audited and approved. For example, Betaferon™ / Betaseron™ for the treatment of multiple sclerosis is 
produced by a contract manufacturer. 
For the Consumer Care Division of the Consumer Health segment, we produce certain active substanc-
es, such as acetylsalicylic acid and clotrimazole, in La Felguera, Spain. The principal raw materials we 
purchase from third parties are naproxen, citric acid, ascorbic acid, other vitamins and paracetamol. To 
minimize business risks, we diversify our raw material procurement sources worldwide and conclude 
long-term supply agreements. Among the division’s production sites are the facilities in Myerstown, 
Pennsylvania, United States; Cimanggis, Indonesia; Lerma, Mexico; Bitterfeld-Wolfen and Grenzach-­
Wyhlen, Germany; Madrid, Spain; and Segrate, Italy. 
The Diabetes Care products (such as blood glucose meters) of our Medical Care Division are mainly 
procured from original equipment manufacturers. Material prices and availability are covered in most 
cases by long-term contracts. We hold strategic reserves of certain materials and finished products so 
that we can supply our customers consistently and reliably. The contrast agents for diagnostic imaging 
procedures are produced mainly in Berlin, Germany. Medical devices such as contrast agent injectors 
and mechanical systems for treating constricted or blocked blood vessels are manufactured at the U.S. 
sites near Pittsburgh, Pennsylvania, and in Minneapolis, Minnesota. Most of the materials and compo-
nents needed to manufacture our medical devices are procured from external suppliers. The availabili-
ty, quality and price stability of the materials are ensured by way of long-term agreements, careful 
choice of suppliers and active supplier management. 
The Animal Health Division procures the pharmaceutical active ingredients for its veterinary medicines 
both from within the Bayer Group and from external suppliers throughout the world. Our animal health 
products are manufactured mainly at the sites in Kiel, Germany, and Shawnee, Kansas, United States, 
and marketed worldwide.
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8. Procurement and Production
CropScience
CropScience, too, manages procurement and production as a single organizational unit. This enables an 
integrated supply chain from raw material purchase through end-product manufacture to warehousing, 
followed by a two- or three-step distribution system depending on local market conditions. 
Our principal procurement countries, representing the bulk of our procurement volume, are centrally 
managed. This enables us to operate efficiently in procurement markets and optimize our cost position. 
We mainly procure supplies of important raw materials on the basis of long-term supply agreements to 
minimize procurement risks such as supply shortages or substantial price fluctuations. Regular sustain-
ability and quality audits of our suppliers ensure compliance with internal and external standards.
Crop Protection and Environmental Science products are mainly manufactured at our own production 
sites and formulating facilities. Among the largest are the facilities in Dormagen, Knapsack and Frank-
furt am Main, Germany; Kansas City, Missouri, United States; and Vapi, India. Our network of decentral-
ized formulation and filling sites enables us to respond rapidly to local market needs. At these sites the 
active ingredients are processed into herbicides, fungicides, insecticides, seed treatment products and 
Environmental Science products according to local requirements and application areas. Packaging of the 
products also takes place in these facilities.
Production in the Seeds business unit takes place at locations close to our customers in Europe, Asia, 
and North and South America at our own farms or under contract.
Investment in our global production network is continuing in order to create capacities for new products 
and technologies and to improve manufacturing processes. We plan to significantly increase our capital 
investment to meet the steadily rising demand in a competitive and timely manner. In September 2013, 
we therefore announced an increase in our capital expenditure budget. We now intend to invest some 
€2.4 billion in property, plant and equipment between 2013 and 2016.
MaterialScience
Procurement at MaterialScience is globally steered by the Procurement & Trading unit. Worldwide pro-
curement and trading processes are centrally managed to leverage synergies within MaterialScience. 
Key raw materials for our MaterialScience products are petrochemical feedstocks such as benzene, tolu-
ene and phenol. We purchase these materials on the procurement markets, mainly under supply agree-
ments. The operation of our production facilities also requires large amounts of energy, mostly in the 
form of electricity or steam. In steam and electricity generation, we aim for a balanced diversification of 
fuels and a mix of external procurement and captive production to minimize the price fluctuation risk.
The principal production facilities of MaterialScience are at Dormagen, Krefeld and Leverkusen, 
­Germany; Shanghai, China; and Baytown, Texas, United States. These supply all the subgroup’s busi-
ness units and are centrally managed by the Industrial Operations unit. Further major production sites 
are located at Antwerp, Belgium; Brunsbüttel, Germany; Map Ta Phut, Thailand; and Tarragona, Spain. 
Each of these sites is managed by the respective business unit.
In the field of commodities, we endeavor to reduce costs by operating high-capacity production facilities 
that enable us to supply our markets on an international basis. We maintain a relatively large number of 
production facilities in selected countries to serve our differentiated businesses. These facilities include 
systems houses, where we formulate and supply customized polyurethane systems, and plants where we 
compound polycarbonate granules to meet specific customer requirements or manufacture semi-fin-
ished products (polycarbonate sheets). We also operate regional production facilities for functional films 
made of polycarbonate or thermoplastic polyurethane.
Global procurement 
and production network 
for seeds and crop  
protection products at 
CropScience
World-scale facilities 
reduce costs for com-
modities
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9. Products, Distribution and Markets
9. Products, Distribution and Markets
Bayer does not tolerate legal violations in the marketing of its products. Responsible marketing means 
acting ethically and morally and adhering to sustainability principles. This involves communicating with 
our target groups in a transparent, consistent and reliable manner. We are also committed to regularly 
evaluating the properties of our products and acting on our findings where necessary. Our Group 
­directive on “Responsible Marketing & Sales” was already adopted by all subgroups in 2012 and has 
been integrated into the relevant regulations. With distribution activities decentrally organized due to 
the diversity of Bayer’s business portfolio, the directive’s ongoing implementation and the respective 
training programs took place in a variety of ways in 2013.
HealthCare 
Our Pharmaceuticals segment supplies prescription products. Our range of cardiovascular products 
­includes the anticoagulant Xarelto™, Adalat™ to treat hypertension and coronary heart disease, and 
­Aspirin™ Cardio for secondary prevention of heart attacks. The product portfolio in women’s healthcare 
comprises contraceptives such as YAZ™ / Yasmin™ / Yasminelle™, Mirena™ and the Essure™ procedure. 
We also offer specialty pharmaceuticals that are mainly prescribed by specialist physicians, including 
Kogenate™ for people with hemophilia A, Betaferon™ / Betaseron™ to treat multiple sclerosis, the cancer 
drugs Nexavar™, Stivarga™ (regorafenib) and Xofigo™ (radium-223 dichloride), the eye medicine 
­Eylea™ (aflibercept), and riociguat (approved in the United States and Japan under the trademark 
­Adempas™) to treat two forms of pulmonary hypertension. Our pharmaceutical products are primarily 
distributed through wholesalers, pharmacies and hospitals. Co-promotion and co-marketing agreements 
serve to optimize our distribution network. For example, we cooperate with Janssen Pharmaceuticals, 
Inc. in the United States in the marketing of Xarelto™.
The portfolio of our Consumer Health segment mainly comprises non-prescription products. The ­Consumer 
Care Division specializes in over-the-counter (OTC) medicines – those available without a prescription –  
and is among the leading suppliers in the OTC market with a portfolio covering all the major therapeutic 
­areas. Our offering includes the pain relievers Aspirin™ and Aleve™ and the OTC medical skincare products 
­Bepanthen™ / Bepanthol™ and Canesten™. The product range also includes nutritionals such as One A 
Day™, ­Supradyn™, Berocca™ and Redoxon™, antacids such as Talcid™, and cough-and-cold products such 
as ­Alka-Seltzer Plus™ and White & Black™. We also offer prescription dermatology products. The division’s 
sales and distribution channels are generally pharmacies, with supermarket chains and other large retailers 
also playing a significant role in certain important markets such as the United States.
In the Medical Care Division we offer blood glucose monitoring devices such as the single-strip 
­Contour™ system and the multi-strip Breeze™ system. We also market the Contour™ USB meter, which 
features integrated diabetes management software and direct plug-in to computers. Outside Europe, 
these products are generally sold to consumers through pharmacies, drugstores, mass merchants, 
hospitals or wholesalers. In Europe, they are sold mainly through pharmacies. We are among the prin-
cipal players in the market for blood glucose meters and are also the world’s leading supplier of con-
trast agent injection systems for diagnostic and therapeutic medical procedures in X-ray, computed 
tomography and magnetic resonance imaging. We are among the leading companies in the field of 
mechanical systems for removing thrombi from blood vessels, offering service products for these sys-
tems in addition. Examples from our portfolio of contrast agents for diagnostic imaging are Ultravist™, 
Gadovist™ / Gadavist™ and Magnevist™. Our products are marketed to cardiologists, radiologists and 
vascular surgeons in hospitals and out-patient clinical sites through a global direct sales organization, 
supplemented in some cases by local distributors.
The Animal Health Division offers an extensive portfolio of pharmaceuticals, nutritionals, grooming 
products and hygiene products for farm and companion animals. Our innovative Advantage™ family of 
products to protect dogs and cats from parasite infestation gives our company the number two position 
in the parasiticides market. The newly developed Seresto™ collar replaces conventional dog and cat col-
lars with a modern system for controlled release of the active ingredient and reinforces our leading mar-
ket position. Other important products include Baytril™ for the control of infectious diseases, Drontal™ 
and Drontal™ Plus wormers, and Baycox™ to treat coccidiosis in livestock. The integration of the prod-
Broad product
portfolio in the
Pharmaceuticals
segment
Consumer Health  
segment: focus on 
non-prescription  
products
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9. Products, Distribution and Markets
uct portfolio we acquired in 2013 from Teva Animal Health Inc., United States, is progressing with the 
relaunch of companion and farm animal products in the U.S. market. Depending on local regulatory 
frameworks, animal health products may be available to end users on a veterinarian’s prescription or 
prescription-free from veterinarians, pharmacies or retail stores.
Responsible business practices at HealthCare
In marketing its medicines, HealthCare applies strict standards and observes the relevant international 
industry codes. This includes all codes of the International Federation of Pharmaceutical Manufacturers 
& Associations (IFPMA) and of regional associations such as the European Federation of Pharmaceutical 
Industries and Associations (EFPIA) concerning relations with health care professionals and patient or-
ganizations. These codes include rules governing the distribution of advertising materials and product 
samples, cooperation with health care and pharmacy professionals under speaker and consultancy 
agreements, and scientific studies. HealthCare has also undertaken to implement the EFPIA transparen-
cy code. The codes apply to prescription medicines. There are also local laws and codes applicable to 
all medicines. 
 Online annex: 3-9-BHc-1
The IFPMA code applies not only to prescription medicines but also to over-the-counter products  
that are directly advertised to health care professionals. Since 2012 the IFPMA code has also included 
basic principles for cooperation with patient groups. HealthCare views the IFPMA code as a global 
minimum standard. The EFPIA Code of Conduct for cooperation with patient organizations mandates 
universal transparency and requires that these organizations’ independence not be compromised by 
the provision of support to patient organizations. Under the code, donations to health care profes-
sionals or organizations must be disclosed on a publicly accessible website. This information must be 
published for the first time by June 30, 2016, and must include the relevant donations made in the 
2015 calendar year.
These local codes generally serve to bring the provisions of the global or regional codes mentioned above 
into line with local laws. In the event of discrepancies among the rules we have committed to respect, 
HealthCare always observes the more stringent requirement. 
We regard the WHO’s Ethical Criteria for Medicinal Drug Promotion as the minimum standard for the 
­advertising of pharmaceutical products. We also observe national ethical standards, which usually are 
also enshrined in industry codes at the local level, an example being that of the association "voluntary 
self-regulation for the Pharmaceutical Industry (FSA). The provisions of our Group-wide Corporate Com-
pliance Policy, the Responsible Marketing & Sales Policy, and the Directive on Integrity & Responsibility 
in Communications and Marketing also apply.
HealthCare has summarized the key requirements for compliant and ethical conduct in globally valid 
HealthCare Compliance Manuals that set minimum standards for all activities.
 Online annex: 3-9-BHc-2
Specifically, the minimum global standard for responsible marketing and ethically acceptable dealings 
with important stakeholders such as officials, health care professionals and patient organizations is 
established by the Manual for Human Pharmaceuticals and Consumer Care Businesses, the Manual 
for Medical Devices Business and the Manual for Animal Health.
The global training program for the compliance manuals launched in 2012 was continued in 2013. 
The training materials are now available in eight languages. There are also web-based and personal-
ized compliance training courses for which employees can enroll via the intranet. These web-based  
programs were honored with the Brandon Hall Excellence in Learning Award 2013, receiving the  
silver medal in the “Best in Compliance Training” category. Additional support and information are 
available for employees in conjunction with all training courses.
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9. Products, Distribution and Markets
As part of our compliance management system, we register and investigate any suspected violation of 
our responsible marketing principles. This includes complaints received from either inside or outside the 
company. 
CropScience
CropScience offers a comprehensive range of products and services for agriculture in the areas of seed 
breeding, crop protection and plant traits. It also supplies products for non-agricultural pest and weed 
control. These are commercialized according to local market conditions. Our business is subject to the 
growing seasons for the relevant crops and the resulting sales cycles. 
CropScience markets its products in more than 120 countries. In the coming years we intend to continue 
expanding our business, particularly in the Emerging Markets, by deploying innovative, leading-edge 
technologies in order to meet the increasing global demand for high-quality food and feed. 
The marketing and distribution activities of the Crop Protection / Seeds operating segment are aligned to 
our product range. 
The Crop Protection business is based on a broad portfolio of highly effective herbicides, fungicides, 
­insecticides and seed treatment products with chemical or biological modes of action. Our innovation 
capability and long years of experience with crop protection products have placed us among the global 
leaders in this market. The activities of the Seeds unit are focused on cotton, oilseed rape / canola, rice, 
soybeans and vegetables. We market high-value seeds based on our own research and breeding exper-
tise. In our core crops, we have achieved strong market positions and are internationally represented.
Our Crop Protection products are marketed through a two- or three-step distribution system, either via 
wholesalers or directly to retailers. We also sell products directly to customers in selected markets where 
farmers and market conditions require this mode of distribution. 
Our seeds are sold to growers, plant raisers, specialist retailers and the processing industry. Plant  
traits developed using modern breeding methods are either incorporated into our own seed varieties or 
licensed to other seed companies.
The products of our Environmental Science operating segment are based on both proprietary and inli-
censed active ingredients and designed for non-agricultural uses. We market pest control and plant 
care products both to private customers in the home and garden sector and to professional users in the 
green industry (including for public parks and golf courses), forestry, infrastructure (such as railroad 
tracks and roads), professional pest control and public health (vector control to combat malaria and 
dengue fever). CropScience is among the world’s leading suppliers of products and solutions for such 
non-agricultural uses. The Environmental Science products are mainly sold through wholesalers and 
specialist retailers. Much of our business in the area of vector control is transacted in response to ten-
dering by government agencies and non-governmental organizations.
CropScience follows the International Code of Conduct on the Distribution and Use of Pesticides issued 
by the Food and Agriculture Organization of the United Nations (FAO). This forms the basis for Crop-
Science’s expanded Product Stewardship Policy, which satisfies the requirements of the Group’s posi-
tion on responsible marketing and sales. Training materials to explain this Group position have been 
distributed throughout the global organization and are posted on the Bayer intranet.
 Online annex: 3-9-BCS-1
In Germany, responsible marketing had already been a focus of all training programs by the end of 
2012, with other countries following suit in 2013. In parallel with the training courses on compliance, 
the topic of responsibility marketing and sales has formed an integral part of the Marketing & Sales  
Excellence training programs at CropScience since the fall of 2012.
Integrated  
product portfolio  
at CropScience
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10. Product Stewardship
MaterialScience
One of the world’s largest polymer companies, MaterialScience is a manufacturer and supplier of pre-
cursors for rigid and flexible foams, plastic granules, and raw materials for coatings and adhesives. The 
subgroup holds leading competitive positions in these product groups. We also manufacture and market 
plastic sheets, functional films and selected inorganic basic chemicals. Some of these chemicals serve as 
raw materials for the manufacture of our products. Others are generated as by-products of our produc-
tion and sold to external customers.
Our products are used mainly in the automotive, construction, electrical / electronics, furniture, wood, 
textile, sports and leisure goods, medical equipment and chemical industries.
Rigid or flexible polyurethane foams based on our diphenylmethane diisocyanate (MDI), toluene diiso­
cyanate (TDI) or polyether (PET) raw materials have found a broad range of applications in a variety of in-
dustries. Automotive uses include the manufacture of car seats and components. These foams are used 
in the construction industry and the refrigeration chain as insulating materials, and in the furniture 
­industry for cushioning and mattresses.
Our polycarbonates are marketed as granules (Makrolon™), sheet, films and blends (APEC™,  
Bayblend™). Their uses include electrical appliance housings, CDs / DVDs, roof structures and automotive 
headlamps.
The Coatings, Adhesives, Specialties business unit manufactures raw materials for car and commercial 
vehicle coatings and for footwear and textile adhesives, for example. Specialties include films used in ID 
and credit cards, along with raw materials for cosmetic and medical products.
We market our products mostly through regional and local distribution channels, making increasing use 
of e-commerce platforms for order processing. We also work with trading houses and local distributors 
who are responsible for business with small customers. Major customers with global operations are 
­serviced directly by our key account managers.
In the marketing of our products, we also take into account all the requirements of the Group’s position 
on responsible marketing and sales. The importance of observing antitrust law and preventing corrup-
tion is regularly emphasized in training programs, internal communications and discussions with man-
agement.
 Online annex: 3-9-BMS-1
The third major training focus at MaterialScience in 2013 regarding responsible marketing and  
sales was product liability. A total of 77 training courses were held worldwide to inform some  
1,700 employees working in the areas of sales and marketing, quality management, development and 
production.
10. Product Stewardship
We assess the possible health and environmental risks of a product along the entire value chain.  
This starts with research and development and continues through production, marketing and use by the 
customer through to disposal. 
At issue here are not just the safe handling and use of our products, but also the transparent communi-
cation and transfer of product safety information. Product stewardship involves both compliance with 
statutory requirements and voluntary commitment. Here, we also take into account the precautionary 
principle as explained by the United Nations and the European Commission.
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 Online annex: 3-10-1
The precautionary principle describes the preventive use of protective measures against risks, should 
sufficient scientific information not be available. It is a possible tool for consumer protection and risk 
management. It is explained in Principle 15 of the Rio Declaration of the United Nations Conference 
on Environment and Development (1992) and in the communication from the European Commission 
(COM 2000 / 1). This principle is applied whenever there is scientific uncertainty in a given area and 
sufficient evidence also exists that there could be a sustainable impact on people or the environment. 
We support the application of the precautionary principle according to the stipulations of the Europe-
an Commission. These measures should be proportionate – i.e. they should meet the chosen level of 
protection; be applicable without discrimination, in other words comparable situations should not be 
treated in different manners; be consistent with similar measures undertaken previously; and be ex-
amined to determine which costs and benefits are associated with the application of the precaution-
ary principle. The measures undertaken are reviewed as soon as new scientific data are available for 
the particular situation. 
Since 1994 Bayer has supported the voluntary Responsible Care™ initiative of the chemical industry, 
which was globalized in 2006 with the introduction of the Responsible Care Global Charter. We cover all 
main elements of the charter with our HSEQ (health, safety, environmental protection and quality) man-
agement systems and activities. We are also actively involved in the further development of scientific risk 
assessment through associations and initiatives.
 Online annex: 3-10-2
International associations such as the European and international chemical industry associations 
(CEFIC / ICCA) and the OECD (Organisation for Economic Co-operation and Development), as well as  
initiatives such as the ECETOC (European Centre for Ecotoxicology and Toxicology of Chemicals) or 
the EPAA (European Partnership for Alternative Approaches to Animal Testing), work to evolve the  
scientific assessment of chemicals, research new test methods and monitor the implementation of 
statutory regulations. Bayer actively accompanies these efforts in its association activities. We are 
also involved in the Long-Range Research Initiative of the ICCA and endorse the goals of the WHO  
and E.U. action plans for improving health and environmental protection, for example with the further  
development of human biomonitoring through an alliance with the German Chemical Industry 
­Association (VCI) and the German Federal Ministry of the Environment.
Implementation of regulations and voluntary programs pertaining  
to chemicals
Since 2007 we have operated in accordance with the European chemicals regulation REACH (Registra-
tion, Evaluation, Authorization and Restriction of Chemicals). It affects all our activities as manufacturer, 
importer and user. To adequately address the scope and complexity of the REACH requirements, we have 
approved Group-wide and subgroup-specific regulations. The registration obligation under REACH 
­applies irrespective of marketing activities for all substances that we produce or import in quantities of 
more than one metric ton. 
 Online annex: 3-10-3
We observe the required registration phases for substances that have been used for a longer period  
of time. The final registration phase will end on June 1, 2018. Substances registered already during 
the first two phases are now being evaluated by the regulatory authorities. In the future this could  
result, for example, in additional testing requirements, new risk management measures or inclusion 
in the authorization procedure.
A number of Bayer substances are also ­affected by the REACH authorization process, which restricts the 
use of particularly hazardous substances or can lead to their replacement or prohibition. 
The authorities monitor the implementation of REACH through regular inspections. So far none of the in-
spections at Bayer has resulted in complaints. As we also use many products from other manufacturers, 
we maintain close contacts with our suppliers and ensure that they confirm compliance with REACH for 
these products. 
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Our Group Regulation “Substance Information and Its Availability” extends beyond the scope of legal 
­requirements. In this way we are ensuring that substance assessments comparable to those established 
under REACH will also be applied at Bayer sites that are not subject to this European regulation.
At the same time, we are implementing the Globally Harmonized System (GHS) for the classification and 
labeling of chemicals, which came into force in the European Union (E.U.) in 2009. The purpose of this 
regulation is to achieve a globally standardized system for classifying chemicals and labeling them ap-
propriately on packaging and in safety data sheets.
We also support the Global Product Strategy (GPS), a voluntary commitment by the chemical industry ini-
tiated by the International Council of Chemical Associations (ICCA). Its objective is to improve knowledge 
about chemical products, especially in emerging and developing countries, and thus increase safety in 
the handling of these products. The ICCA has established an information portal through which summa-
rized details on products (GPS Safety Summaries) are made available. GPS is of particular relevance for 
Material­Science.
In accordance with the respective product safety and information obligations, all subgroups compile 
product information on raw materials, intermediates or end products. To ensure worldwide access to 
this information, our subgroups use corresponding IT systems, including for product labeling.
Product stewardship in the use of biotechnology
Product development in our Pharmaceuticals and Crop Protection businesses makes use of biotechno-
logical methods. Biotechnology has already gained significant importance in pharmaceutical product de-
velopment. The HealthCare products Betaferon™ / Betaseron™, Kogenate™ and Eylea™ are manufactured 
by a biotechnological process. 
Plant biotechnology can help to improve crop yields, yield security and the stress tolerance of plants 
without the need for an increased input of resources through both genetic engineering and non-genetic 
engineering methods. 
Safety is Bayer’s top priority in the use of biotechnology too. Beyond our observance of all relevant legal 
provisions, we have formulated a Bayer Group Regulation “Position on the Responsible Use of Gene 
Technology” and specific regulations for the subgroups and service companies.
 Online annex: 3-10-4
Before any product reaches market maturity, we subject it to a stringent approval procedure to  
determine whether it is safe for human health, animals and the environment. 
HealthCare has established strict safety measures for handling and for research & development in  
its “Biological Safety” regulation and its “Requirements for the safe handling of biological agents” 
procedure. 
In 2013 CropScience maintained its focus on product stewardship for customers both within and  
outside the company through its activities in the context of the industry’s Excellence Through  
Stewardship Program. Product stewardship and quality management processes are the top priority  
in all activities connected to plant biotechnology.
We provide our stakeholders with comprehensive, transparent and reliable information about our 
products and services in accordance with our Bayer Group Regulation “Responsible Marketing & 
Sales.”
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Focusing on animal welfare
During research into new active pharmaceutical ingredients, animal studies are prescribed and only re-
placeable to a certain extent. They are essential from a scientific viewpoint to assess the effects of our 
products, especially on people, but also on nature and the environment. In our handling of animals, we 
respect all legal requirements pertaining to animal welfare. Should animal studies be required to evalu-
ate our substances, Bayer observes the so-called 3rs principle: 
•	 Replace: prior to each project, we check whether a recognized method is available that does not rely on 
animal studies and apply it.
•	 Reduce: in case no alternative method exists, only as many animals are used as are needed to achieve 
scientifically meaningful results based on statutory requirements. 
•	 Refine: we make sure animal studies are performed in a way that is as gentle on the animals as possible. 
Our principles also apply to both the research institutes we commission and our suppliers, whose com-
pliance with our animal welfare requirements we regularly monitor.
 Online annex: 3-10-5
Bayer’s Global Animal Welfare Committee monitors the observance of our principles on animal welfare 
and animal studies within the Bayer Group and in external studies. In 2011 this body – comprised  
of the animal welfare officers at our research sites and further Bayer experts – began defining perfor-
mance indicators. Within this context, we each year analyze aspects such as the number of animals 
used, the number of animals at contract research organizations (CROs), the breakdown according to 
species and the ratio of regulatorily required studies to exploratory studies. Other indicators such as 
the number and quality of audits performed at our suppliers and CROs have been initiated and are  
being internally evaluated. We have begun with the establishment of an internal Bayer database that 
combines all information about our own animal studies and the evaluation of our cooperation part-
ners. Bayer participates in several European consortia that aim to reduce the number of animal studies 
or improve their validity: we are active, for example, in the European Partnership for Alternative  
Approaches to Animal Testing (EPAA); we also help to implement the Safety Sciences for Medicines 
(SafeSciMET) program and are involved in the leadership of the eTOx project and the MARCAR project 
of the Innovative Medicines Initiative (IMI). Furthermore, we support the Foundation for the Promo-
tion of Alternate and Complementary Methods to Reduce Animal Testing (SET).
Protection against product counterfeiting
Illegal trade with counterfeit medicines and crop protection products is on the rise worldwide. Coun-
terfeit products in the areas of health care and nutrition put patients and consumers at risk. Sub­
standard products also cause considerable financial damage for both producers and users. 
Industry, associations, governmental agencies and non-governmental organizations must join together 
to fight product counterfeiting. Bayer continuously advocates the strengthening and expansion of exist-
ing laws and provisions aimed at the identification and confiscation of illegal products. We undertake a 
wide range of measures to inform our customers about both the danger posed by, and the insufficient ef-
fectiveness of, counterfeit products. 
 Online annex: 3-10-6
Counterfeit pharmaceuticals rank near the top of the E.U.’s customs statistics. The number of investi-
gations in Germany increased by 39% in 2012 compared with the previous year, and has risen by an 
even more substantial 100% since 2010. In close cooperation with the authorities, Bayer works to 
protect the health of patients, customers and users. The focus is on education and information to  
ensure the reliable identification of our original products, as well as on legal steps aimed at minimiz-
ing illegal trade. 
Through the internet platform “Beware of Counterfeits,” HealthCare informs patients about the risks 
of counterfeit pharmaceuticals and provides patients with tips on how they can protect themselves. 
	 www.animalstudies.
bayer.com
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Bayer participates in the Pharmaceutical Industry Initiative to Combat Crime (PIICC) of Interpol to 
counteract pharmaceutical counterfeiting through global prosecution and the elimination of related 
criminal networks.
We also support the establishment of a pan-European system for the verification of pharmaceutical 
packaging that satisfies the requirements of the E.U. Falsified Medicine Directive. We participate in 
the SecurPharm project in Germany.
According to an estimate by Europol from 2012, illegal products account for 25% of the crop protec-
tion market in some E.U. member states. CropScience provides information and anti-counterfeiting 
training materials (manuals, workshops, etc.) to retailers, farmers and authorities. In 2013 training 
courses were conducted in the Middle East, in several E.U. countries and in other regions at which 
Bayer warned of the dangers of product counterfeiting. In this connection, we also support initiatives 
by global and regional association committees such as the Anti-Counterfeiting Expert Group of the 
European Crop Protection Association (ECPA) and the Anti-Counterfeiting Steering Committee of the 
industry association CropLife International (CLI).
CropScience works together intensively with national and international authorities, thus frequently 
enabling the confiscation of counterfeit products. In 2013 we further intensified our cooperation with 
the European authorities to support them in their investigation into criminal networks that place  
illegal and counterfeit crop protection products onto the European market. CropScience works to-
gether with shipping companies and European ports of entry to prevent the transport of counterfeit 
products by more closely inspecting freight and customers, among other measures. Most counterfeit 
products originate in Asia and reach the trade market through central European cargo ports. With our 
support, substantial quantities of illegal products were confiscated by the port authorities again in 
2013. CropScience also carries out its own inspections of suspicious goods shipments. In the report-
ing year, legal action was successfully taken four times against sellers of counterfeit parallel imports 
in Germany alone.
HealthCare
Benefit-risk management for medicinal products and medical devices
HealthCare continuously assesses the medical benefit-risk balance of its pharmaceuticals and medical 
devices throughout their entire life cycle. For this process, experts from various disciplines form 
cross-functional Safety Management Teams (SMTs). These teams jointly evaluate the available benefit 
and risk data along with other relevant information on the product in order to identify possible safety 
risks at an early stage and assess the medical benefit-risk balance. The evaluation also makes use of ex-
ternal databases so as to ensure as broad a base of data as possible. Should significant risks be identi-
fied, HealthCare immediately takes measures to minimize them, such as updating the product informa-
tion for patients and physicians.
 Online annex: 3-10-BHC-1
Further tools in risk minimization programs can include targeted information, e.g. patient education 
brochures, and training measures for health care providers and patients. SMTs compile medical  
benefit-risk data and information and produce detailed safety risk management plans. These plans 
are updated as soon as relevant new benefit-risk data become available. Implementation of risk mini-
mization activities is coordinated by local SMTs in the country organizations.
The Global Pharmacovigilance unit of HealthCare pools safety-relevant information on our products in 
the company’s own pharmacovigilance database on an ongoing basis. This information is continuously 
updated and evaluated by experts. In this process, Bayer works closely with the responsible regulatory 
and oversight authorities at an international, national and regional level. These include the U.S. Food and 
Drug Administration (FDA), the European Medicines Agency (EMA) and Germany’s Federal Institute for 
Drugs and Medical Devices (BfArM). 
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HealthCare’s quality and risk management functions make further contributions to increased safety.  
We examine external and internal quality assurance requirements for our products through systematic 
internal inspections – not just in research and development, but also in production. These inspections 
also cover institutes sub-contracted by us and our suppliers. Through our safety risk management sys-
tem, drug product risks are systematically identified and assessed, and the necessary steps initiated. 
Countries and regions receive continuous support to help them comply with regulatory requirements for 
pharmaceuticals. 
Scientific publications by our researchers satisfy recognized international standards that we have under-
taken to observe in our Good Publication Policy. We base the implementation of all clinical studies on the 
Good Clinical Practice guidelines of the World Health Organization (WHO) and on the guidelines of the 
­International Conference on Harmonization (ICH). We disclose the methods and results of clinical trials. 
Analysis of pharmaceutical trace amounts in the environment
Active pharmaceutical ingredients can enter the environment through human excreta or livestock excre-
ment, improper disposal by users or residues in wastewater from pharmaceutical production.
To assess the potential environmental impact of our pharmaceutical products, HealthCare carries out 
­ecotoxicological investigations of the environmental behavior of trace amounts and degradation prod-
ucts. These assessments are contained in the dossiers submitted to the European regulatory authorities 
for both veterinary and human pharmaceuticals. It must be demonstrated during the approval procedure 
that no significant risk exists for the environment when the drug products are used correctly.
Internal company wastewater standards are in place to ensure that no risk to the environment results 
from the release of traces of active ingredients in wastewater from production sites. The company 
aims to define specific threshold values that must be met by all HealthCare production sites world-
wide.   
Measurements carried out by authorities and scientific institutes have revealed that the concentration  
of individual active pharmaceutical ingredients from human or veterinary medicines present in drinking 
water is lower than the level that would have pharmacological effects in humans. On the basis of our 
­current knowledge, the presence of individual active pharmaceutical ingredients in bodies of water or 
drinking water does not pose any risk to humans. This is confirmed by the WHO Report on Pharmaceuti-
cals in Drinking Water published in 2012.
 Online annex: 3-10-BHC-2
At the scientific level, HealthCare participates in projects aimed at further researching and reducing 
pharmaceutical residues in the environment:
Within the PILLS project concluded at the end of 2012, HealthCare and its European partners exam-
ined the extent to which new purification technologies at so-called point sources are able to complete-
ly eliminate pharmaceutical residues. The project partners demonstrated that the construction of 
wastewater treatment facilities at hospitals featuring special purification technology can further ­reduce 
the active ingredient content in wastewater. However, the cost of this purification technology currently 
remains substantial. The E.U.-sponsored successor project noPILLS therefore examines whether it is 
possible to address the problem at a lower cost directly at the point of entry. noPILLS also focuses on 
studying the influence on consumer behavior, for example, with regard to the ­disposal of expired drug 
products. Bayer is a member of the Scientific Advisory Board of noPILLS too.
 
In Germany, HealthCare participates in the “Risk Management of Emerging Compounds and  
Pathogens in the Water Cycle” (RISKWA) initiative sponsored by the German Ministry for Education 
and Research. HealthCare is a member of the steering committee.
	 www.annual­
report2013.bayer.
com/clinical-trials 
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Safety and quality standards at Animal Health
In line with the statutory requirements, strict quality standards apply to all Animal Health product 
classes. Safety and quality standards comparable to those governing human medicine apply for veteri-
nary pharmaceuticals such as parasiticides, anthelmintics or antibiotics. Within the scope of the ap-
proval procedures, Animal Health carries out studies in order to minimize the environmental impact of 
the products’ use.
We train veterinarians, farmers and private users in the responsible use of our products. In this context, 
we also support the European Platform for the Responsible Use of Medicines in Animals, which brings 
together various partner organizations from politics, industry and society. 
CROPSCIENCE
Safety is the top priority with products from CropScience. We analyze already prior to the development 
of a product whether the envisaged solution is compatible with our sustainability approach. During the 
development phase, we examine the products in stringent tests that are monitored by the authorities. At 
issue here are an active ingredient’s toxicological properties on the one hand and on the other hand the 
question of how significant the remaining trace amount of a crop protection product is following proper 
application to the plants. Before a product is introduced to the market, we conduct numerous further 
safety tests with regard to its use and environmental behavior, depending on the product area.
CropScience allowed the sale of all remaining WHO Class I insecticide formulations for leaf and soil 
­applications and seed treatments to expire at the end of 2012. All insecticides affected were replaced by 
modern, targeted and more environmentally friendly formulations. 
CropScience observes the International Code of Conduct on the Distribution and Use of Pesticides of the 
United Nations Food and Agriculture Organization (FAO). The principles of this code cover the entire life 
cycle of a product, from its development to its application and beyond. We implement all major aspects 
of responsible product handling in our Product Stewardship Program, which is based on the principles 
of our Product Stewardship Policy.
 Online annex: 3-10-BCS-1
Even beyond its core business, CropScience participates specifically in projects aimed at added  
product stewardship. We are a member of the Better Sugarcane Initiative, which works to promote 
sustainable sugarcane cultivation in Brazil, and the International Sustainability & Carbon Certification 
organization, which is working to establish a system for certifying biomass and bioenergy. We also 
take part in the Round Table for Responsible Soy, which works to promote sustainable soybean  
production, as well as in the Round Table for Sustainable Palm Oil Production, an organization that 
promotes sustainable cultivation methods for the production of palm oil.
Responsibility for customers and partners
The application of crop protection products requires the greatest possible care. Supporting our custom-
ers and partners in the proper and safe handling of the products is therefore a focus of product steward-
ship at CropScience. We address farmers and dealers particularly through numerous programs world-
wide. Targeted workshops are aimed at enabling effective application of our products and ensuring the 
safety of users, the environment and consumers. Furthermore, we provide our customers with hand-
books explaining the safe use, storage and disposal of all of our products.
 Online annex: 3-10-BCS-2
CropScience concentrated its training activities in 2013 on the Asia and Latin America regions. In  
India, for example, the subgroup has been organizing general training and information events, through 
which 600 farmers receive training in good agricultural practice. They learn how they can enhance 
the growth of their produce, use crop protection products effectively and safely, and thus increase the 
quality of the goods they produce. The smallholders are also shown new ways of marketing their 
products and thus increasing their profits. 
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Promoting agricultural development is often a more effective way to fight hunger and poverty than 
other forms of support. Higher incomes in turn enable farmers in countries such as India to improve 
their standard of living and invest more in their children’s education and their own businesses.  
Value is created for society as a result of the increased production of high-quality food. With these 
measures, we contribute to sustainable agricultural development. 
In Latin America, we combined all our activities dealing with product safety measures within our 
AgroVida program. This comprises various initiatives with which we have been continuously increasing 
the farmers’ safety awareness and specialist expertise since the 1990s. Safety training offerings for 
farmers play a role here, for example. In 2013 we trained some 20,000 farmers in the Andean region 
and approximately 3,700 farmers in the Central America and Caribbean region (excluding Mexico). 
We also carried out safety training measures in numerous African countries in 2013. 
Bayer supports industry’s efforts in various countries to establish a cross-company waste disposal 
concept for used packaging and containers. In anticipation of such a solution, Bayer also established 
its own disposal systems. 
In the area of water pollution control, we offer customers a biological purification system, Phytobac™. 
This is intended to prevent the discontinuous discharge of crop protection active ingredients in the 
disposal of residual liquids that are generated during the filling and cleaning of spraying devices. In 
Europe, there are already around 2,500 Phytobac™ facilities. It is planned to introduce this system  
in Asia and Latin America as well. 
Furthermore, we also work to improve technical solutions to minimize risks associated with the use  
of our products: in Europe, for example, we drove forward the optimization of sowing machines to 
provide better protection for users and the environment. The goal here was primarily to restrict the 
spread of dust. 
The company’s range of continuing education programs for product stewardship is rounded out by 
internal employee training measures. Our aforementioned Product Stewardship Policy also provides 
information on all principles for the responsible handling of our products, combined with specific  
instructions for use for our employees and those who work with our products.
Bee HEALTH and crop protection
Crop protection products that benefit farmers, consumers and the environment are necessary to safe-
guard the nutrition of a growing world population both now and in the future. At the same time, it is 
­essential to protect the pollinators that contribute to a wide variety of healthy foods. In 2013 the debate 
surrounding the use of certain neonicotinoid crop protection products and the subjective assessment of 
their impact on bee health had an effect at the political level. As a result, the European Commission re-
stricted the use of a number of products in this active ingredient class for certain applications in Europe. 
Bayer considers the decision by the European Commission to be scientifically unjustified and legally 
flawed. The active ingredients in question were extensively examined with regard to their impact on bee 
health already during the approval procedure. Bayer has appealed the decision by the European Com-
mission in order to ensure legal certainty for approval procedures. Bayer continues to work on behalf of 
bee health and the responsible use of crop protection products. Within the context of its product stew-
ardship, the company invests in research to minimize the effects of crop protection products on honey 
bees.
 Online annex: 3-10-BCS-3
In 2012 Bayer launched a worldwide bee care program to promote a better understanding of the 
many factors that can impact bee health. This program included the construction of the first Bayer 
Bee Care Center at the site of CropScience and HealthCare’s Animal Health Division in Monheim, 
Germany. CropScience’s center in Monheim, which opened in June 2012, combines Bayer’s extensive 
knowledge and expertise in bee health under one roof. It also serves as a platform for dialogue with 
stakeholders who share our interest in promoting bee health worldwide. Following the success of this 
facility, a second Bayer Bee Care Center will open in 2014 that will deal specifically with bee health 
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issues in North America. The North America center will be located at the U.S. headquarters of  
CropScience at Research Triangle Park near Raleigh, North Carolina, United States, and will bring  
together important technological, scientific and academic resources.
There is broad consensus among scientists who work in the area of bee health that the spread of  
the difficult-to-combat Varroa mite presents the main risk to bee health, partly because this pest 
transmits numerous viral diseases to bees. The Animal Health Division of HealthCare is working with  
researchers at the Institute for Apiculture in Oberursel, Germany, to develop the Varroa gate – an  
innovative way to control Varroa mites that is intended to keep this parasite from infesting beehives. 
However, another important factor that can impact bee health is generally more intensive agriculture 
in some regions, which limits suitable food sources for bees and breeding places for wild bees.
In addition to the focus on bee health, we assign importance to the product stewardship measures  
we are developing to accompany the use of our crop protection products. These initiatives include  
a new conveyor technology in the United States for sowing machines that reduces friction and thus 
promotes the even flow of seed; the additional labeling of seed sacks; two new technologies devel-
oped in Europe to treat exhaust air during sowing; and new, even more stringent quality control  
standards for seed dressing.
 
We have also launched an extensive bee monitoring program that is being implemented in five  
European countries (France, the United Kingdom, Germany, Hungary and Poland). The tests are  
carried out on winter canola, a crop that is very attractive for bees and is generally treated with  
neonicotinoid seed dressings. The monitoring includes a scientific study led by an independent  
research institute that will be implemented at various sites in the above countries and will begin with 
the sowing of the winter canola in summer 2014. In addition, to illustrate the monitoring activities  
a network of agricultural demonstration plants is being established in these countries that will come 
into play in spring 2014. These activities are scheduled to take two to three years.
CropScience remains convinced that neonicotinoids are safe for bees if they are used responsibly and 
properly. Our view is supported by the analysis of monitoring studies that were carried out by inde-
pendent institutes in addition to the studies generated in extensive approval procedures. The current 
findings and many years of safe application of these products in agricultural practice confirm the  
results of the risk assessments performed by the E.U. member states’ regulatory authorities on neo­
nicotinoid seed dressings. These results state that the products are harmless to bee colonies provided 
they are used according to the product information. We initiated the above additional monitoring 
study independently of the numerous scientific studies that confirm the safety of neonicotinoids.
MaterialScience
The products of MaterialScience satisfy the most stringent of safety requirements. This applies not just 
to those substances subject to standard review in accordance with the European REACH regulation. With-
in the context of the voluntary Global Product Strategy (GPS) of the chemical industry, we also assess the 
substances we use and reduce potential health and environmental risks that could result from our chem-
icals. The product safety assessments apply to the entire life cycle of a product – from research and pro-
curement through production and logistics to application, disposal and recycling. Our product steward-
ship does not just end with our company, but also includes suppliers, customers and partners. GPS is 
accessible at MaterialScience through the “Product Safety First” internet portal, and has been available 
worldwide in seven languages since 2013. Through this website, we inform customers and other interest 
groups about our activities and product safety assessments.
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 Online annex: 3-10-BMS-1
A product safety assessment at MaterialScience takes place in several steps: first, chemicals that  
are subject to statutory regulations are identified and the corresponding laws compiled. Their risk  
potential is then examined so as to provide a basis for the effective minimization of risks. Such steps 
can include proposals for technical measures such as protective clothing, or marketing restrictions.  
Finally, we produce the legally required material safety data sheets, technical information sheets and 
labeling for the chemicals.
For especially important products such as MDI, TDI, polycarbonate and polyether, MaterialScience addi-
tionally works with associations to draw up environmental product declarations and eco-balances certi-
fied according to ISO 14040 and 14044 and based on industry averages. 
With regard to substances that come into direct contact with food, MaterialScience is following the sci-
entific discussion about the chemical Bisphenol A (BPA), a feedstock for various plastics. Critics are con-
cerned that health risks could result for users if traces of BPA are released from polymers. As document-
ed by numerous scientifically valid studies, we are convinced that the safety of BPA is ensured in its 
existing areas of application. This assessment is consistent with evaluations by the responsible regulato-
ry authorities in Europe, the United States, Australia, Japan and other countries. In cooperation with the 
PlasticsEurope association, we work to make the discussion more objective through being based on sci-
entific analysis. 
MaterialScience discontinued its work on carbon nanotubes (CNTs) in 2013 due to strategic consider-
ations. Researchers from MaterialScience had collaborated with external partners in recent years to re-
solve complex issues related to the safe production of specific carbon nanotubes. Much of the knowl-
edge gleaned has already been made available to other companies and research institutions within the 
Innovation Alliance for Carbon Nanotubes (Inno.CNT).
11. Safety
Safety management is a keystone of corporate responsibility in the Bayer Group. We consider the pre-
vention of accidents in day-to-day work, in the operation of production facilities, and on work-related 
travel and transportation routes to be a top priority. Our activities in the areas of health, safety, environ-
mental protection and quality (HSEQ) are geared to ensuring the occupational health and safety of em-
ployees, contractors and suppliers on our company premises and under the supervision of Bayer, and 
the smooth and safe operation of our facilities. In this way, we also reduce running costs by avoiding 
damage and work disruptions.
At the Group level, responsibilities and framework conditions for HSEQ are regulated through appropri-
ate ­directives. Operational responsibility lies with the boards of management / executive boards of the re-
spective subgroups and service companies and the corresponding line organizations, who have their 
own management systems, committees and working groups to steer HSEQ. Continuous review and 
­revision of directives and regular internal audits ensure that our HSEQ management systems meet the 
specific requirements in each case.
Occupational health and safety
The rate of occupational injuries with lost workdays at Bayer has been falling for several years. In 2013 
we were once again able to report a reduction in injury figures thanks partly to intensive training and 
awareness-raising.
We record all injuries to Bayer employees requiring medical treatment that goes beyond simple first aid. 
These are indicated by the Recordable Incident Rate (RIR), which covers both injuries with lost workdays 
and those without. In 2013 this rate dropped to 0.47 cases per 200,000 hours worked (2012: 0.49) in the 
Group. This means that, in statistical terms, one recordable incident occurred for around every 425,000 
hours worked. 
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11. Safety
The rate of recordable occupational injuries with lost workdays (LTRIR, Lost Time Recordable Incident 
Rate) also fell. In 2013 it stood at 0.26 (2012: 0.27).
Unfortunately, in 2013 we had to report the work-related death of a Bayer employee in Mexico and of a 
contractor’s employee in China. 
The injury figures varied both within individual regions and according to subgroup/service company.
 Online annex: 3-11-1
The unusually sharp increase in the RIR injury rate in Europe is currently being closely investigated. 
Since 2012 workplace-related illnesses have been recorded separately from legally listed occupational 
diseases and are included in the LTRIR parameter. In the reporting period, six new cases of illness direct-
ly attributable to work-related factors were recorded throughout the Group. We report such cases when 
they have been diagnosed and officially recognized by a medical officer.
As in previous years, we hardly recorded any sector-typical accidents involving contact with chemicals in 
2013. The absolute number of injuries declined further. A significant proportion of our work-related ac-
cidents and injuries relates to traffic accidents. In the previous year (2012) these were even at the top of 
our list of injury statistics. As a result, road safety was the focus of many programs and training courses 
in 2013. 
 Online annex: 3-11-2
Safety in motorized and non-motorized transport was also a central issue at the HealthCare sites 
worldwide, along with accidents caused by tripping, slipping and falling, as they account for most  
occupational injuries with lost workdays at HealthCare. Various measures and campaigns to prevent 
accidents on the road and on company premises were therefore carried out at many sites in 2013. 
Dedicated training courses and activities were also used to raise awareness in other areas of  
occupational safety such as workshops on the safe handling of hazardous substances for employees 
at various Chinese sites.
Recordable Occupational Injuries (RIR) to Bayer Employees by Region
[Table 3.11.1-1]
 
2012
2013
Europe
0.21
0.72
North America
0.56
0.49
Asia / Pacific
0.54
0.20
Latin America / Middle East / Africa
0.53
0.40
Total
0.49
0.47
Occupational Injuries
[Table 3.11.1]
  
2009
2010
2011
2012
2013
Occupational injuries to Bayer employees  
with lost workdays (LTRIR *)
 
0.40
 
0.34
 
0.31
 
0.27
 
0.26
Recordable occupational injuries to Bayer  
employees (RIR *)
 
0.62
 
0.62
 
0.56
 
0.49
 
0.47
Fatal injuries (total)
4 
4 
3
2
2
of which Bayer employees
4 
4 
2
2
1
of which contractor employees **
0 
0 
1
0
1
*	 The values up to 2010 were calculated on the basis of the former MAQ values and do not include work-related illnesses.
**	employees working for third parties whose accidents occurred on our company premises and under Bayer supervision
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11. Safety
Road safety was also a big issue at CropScience in 2013, especially in training sessions for employees 
in Brazil, Colombia, Chile and Venezuela, and in several Asian countries, where motorcyclists in  
particular were given instruction. In a monthly “QHSE Update,” CropScience publishes up-to-date  
information and advice for its employees worldwide.
In 2013 MaterialScience once again called on its employees to submit their suggestions for the  
subgroup’s own CEO Safety Award. Measures implementing the winning entries will be rolled out 
worldwide at MaterialScience in 2014.
On the basis of a 2012 employee survey on HSE (Health, Safety, Environment) performed at Bayer 
Corporation in North America and at MaterialScience worldwide, all MaterialScience sites drew up 
action plans by the end of 2013. The goal is further improvement in occupational safety and the cor-
responding HSE management systems.
At the annual Group-wide Safety Day in September 2013 there was also a particular focus on correct 
road safety procedures.
Process and plant safety
Through the Group-wide process and plant safety (PPS) initiative, Bayer is continuously working to im-
prove the safety culture and corresponding standards in plants and laboratories and to optimize safety 
technology.
 Online annex: 3-11-3
By the end of 2012, the process and plant safety initiative had provided training to approximately 
26,000 production and technology employees and had led to the introduction of a standardized risk 
assessment including a catalog of measures. Based on the experience gained from these initial train-
ing courses, work began in 2013 on preparing teaching materials to enable the long-term continua-
tion of the training program using both traditional and web-based training. To maintain the standard 
achieved in the long term, the process and plant safety training program will be firmly established  
in the subgroups’ HSEQ management systems.
Further standardized KPIs, such as Loss of Primary Containment (LoPC), were also prescribed for all 
Bayer plants. LoPC refers to unsafe conditions in production facilities, for example chemicals leaking 
from their primary container such as pipelines, pumps, tanks or drums. LoPC was introduced as an early 
indicator. We use the associated rate (LoPC Incident Rate) to determine the number of LoPC incidents 
per 200,000 working hours in areas relevant to plant safety. The LoPC Incident Rate for 2013 was 0.35 
(2012: 0.38). 
 Online annex: 3-11-4
Every incident reported is carefully analyzed with respect to its causes. The result of the cause analysis 
is publicized across the Group to heighten the safety awareness of employees. The reporting level is 
set so low that even material and energy leaks that have no impact on employees, neighbors or the 
environment are systematically recorded and reported. This approach is in line with our commitment 
to maintaining the integrity of our facilities at all times. As expected, the evaluations from the first  
few years have indicated areas where there is room for further improvement in the safety of existing 
facilities. The introduction of both this parameter and the global training program mentioned above  
is helping us to raise awareness of the significance of minor leaks and releases. 
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11. Safety
The Bayer Group Regulation “Process and Plant Safety” stipulates uniform processes and standards. The 
­methods and criteria for identifying and assessing the risks posed to people and the environment by 
plants and processes underwent further development and were globally standardized. 
The Bayer Group’s competence center for process and plant safety, together with the Group HSEQ 
­Platform for Process and Plant Safety, is managed by Technology Services. This comprises three region-
al competence centers, which are located in Leverkusen, Germany; Shanghai, China; and the Baytown 
and Kansas City sites in the United States. 
Transportation safety
A central objective of the Board of Management is to make transportation safety a very high priority 
within the Bayer safety culture. The Bayer Group Regulation “Transportation Safety” specifies proce-
dures that ensure that all transported materials are handled in line with applicable regulations and the 
materials’ hazard potential. Logistics service providers are to be selected following a defined procedure, 
and their fulfillment of safety and quality standards is to be assessed regularly. The regulation requires 
every organizational unit concerned to appoint people who will be responsible for implementation. 
A Group-wide Transportation Safety Platform has been set up that is chaired by each of the subgroups  
in turn. In 2013 the focus of the platform’s activities lay, for example, on sustainable training tools for 
transportation safety, reviewing internal instructions and evaluating and selecting our logistics service 
providers. This was documented in corresponding HSEQ targets. As part of our Responsible Care™ activi-
ties, transportation safety instructions are also being drawn up for non-hazardous materials. This goes 
beyond what is required under transportation legislation. 
The transportation safety management of the subgroups is part of the audit system of the Bayer Group 
detailed in the Bayer Group Regulation “Health, Safety, Environment and Quality (HSEQ) Audits.” 
We classify critical incidents during the transportation of our products as transport incidents. These  
include accidents that cause personal injury, significant damage to property, environmental impact 
through the release of substances or leakage of hazardous materials. We record transport incidents 
­using defined criteria. Assessment is based on the leaked load, graded according to the volume and dan-
gerous goods class, personal injury and blocked transportation routes. We take into account both our 
own chemical transports and those we commission and pay third parties to perform on our behalf.
In total, well over one million transport movements took place in 2013. Despite extensive safety precau-
tions and training activities, it is unfortunately impossible to prevent transport incidents from occurring 
altogether. We carefully analyze and evaluate all incidents so that adequate steps can be taken to prevent 
a recurrence. The number of transport incidents in the reporting period rose from six to 11. All incidents 
occurred on the road or at sea. 
A detailed overview of the transport incidents can be found in Chapter 12.6 “Environmental Incidents.”
 	See Chapter 12.6
Transport Incidents by Means of Transport 
[Table 3.11.2]
 
2009
2010
2011
2012
2013
Road
8
6
6
6
8
Rail
2
1
1
0
0
Inland waterways
0 
1
0
0
0
Sea
0 
0
0
0
3
Air
0 
0
0
0
0
Pipeline
0 
0
0
0
0
Total
10 
8
7
6
11
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12. Environmental Protection 
12.1 Energy Consumption
12. Environmental Protection
Bayer takes its responsibility to protect the environment very seriously. It is constantly working to 
­reduce environmental impact and find innovative solutions that benefit the environment. Our environ-
mental standards apply worldwide.
Eco-efficient processes help cut the costs associated with materials, energy, emissions and disposal. After 
all, an efficient approach to raw materials and energy is now more than ever an economic imperative too. 
Ever increasing costs oblige us to take measures to improve resource and energy efficiency that relieve the 
strain on the environment while also cutting costs.
Our commitment to environmental protection, health and safety extends beyond the scope of legal re-
quirements. It includes factoring in environmental aspects and performing a voluntary ecological assess-
ment for capital expenditure projects exceeding €10 million. In the case of acquisitions we examine 
­prior to the transaction whether the applicable environmental and occupational safety regulations and 
fundamental employee rights are complied with at the production sites in question.
We are committed to the chemical industry’s Responsible Care™ initiative and have set out the basic 
principles of this commitment in our Bayer Sustainable Development Policy. Certified HSEQ manage-
ment systems control its operational implementation.
12.1 Energy Consumption
Energy and material consumption and emission levels are highly dependent on the manufactured sales 
­volume. Consequently, this is our reference parameter for evaluating energy and resource efficiency. 
In 2013 Bayer’s manufactured sales volume fell by 1.4%. The Group’s total energy consumption mean-
while was even down 2.8% at 80.8 petajoules. We differentiate between primary energy consumption at 
our sites – mainly of fossil fuels to generate our own electricity and steam – and secondary energy con-
sumption that reflects the purchase of electricity, steam and refrigeration energy and the use of process 
heat. Primary energy consumption fell by 3.0% and secondary energy consumption by 2.6%. Alongside 
the lower manufactured sales volume, an increased drive to improve efficiency also contributed to this dis-
proportionately large decrease. The trend away from a correlation between manufactured sales volume 
and energy consumption already identified in previous years thus continued in 2013.
The volume of the fossil fuels natural gas, oil and coal consumed decreased in 2013.  In the area of sec-
ondary energy sources, steam consumption fell significantly but electricity consumption was only slight-
ly below the figure for the previous year. Developments varied according to subgroup and site.  
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12. Environmental Protection 
12.2 Air Emissions
Bayer utilizes primary energy as efficiently as possible and applies cogeneration in more than 90% of its 
energy generation. The electricity and heat generated are used in our own production facilities and 
third-party facilities (especially of Lanxess Deutschland GmbH as the other shareholder of our service com-
pany Currenta). The (secondary) energy purchased via us is also used at third-party production facilities. 
Furthermore, we purchase electricity on the market – through electricity exchanges, for example. In the 
­reporting period, the proportion of renewable energies Group-wide was 0.7%. We comment in detail on 
these issues in the CDP (Carbon Disclosure Project-Climate Change Program) Report. 
12.2 Air Emissions
At Bayer, air emissions are caused mainly by the generation and consumption of energy. Our com-
mitment to greater energy efficiency helps reduce both costs and emissions. In addition, we aim to 
contribute to climate protection on several levels and have established a Group-wide Climate Pro-
gram for this purpose.  
Climate Program
For some years, we have been working through our Climate Program to improve resource and energy 
efficiency, one objective being to reduce greenhouse gas emissions during production operations. We 
also offer market solutions aimed at protecting the climate and adapting to climate change.
By introducing this Climate Program, Bayer already reduced its specific emissions by around 18% be-
tween 2005 and the end of 2013. We have therefore achieved our ambitious medium-term targets. By 
implementing energy management systems and investing in energy efficiency measures we have also 
improved the Group’s energy efficiency by around 18% over the same period as planned.
Relationship between Energy Consumption and Manufactured Sales Volume
[Table 3.12.1]
 
2009
2010
2011
2012
2013
 
Terajoules
Terajoules
Terajoules
Terajoules
Terajoules
Primary energy consumption  
for the in-house generation of electricity & steam 
(1,000 TJ)
 
 
48.1
 
 
51.6
 
 
50.1
 
 
49.0
 
 
47.6
Natural gas
29,413 
31,847
31,162
30,411
29,796 
Coal
16,976 
17,801
16,776
15,954
15,094 
Liquid fuels
772 
532
660
656
416
Waste
(33)
678
515
1,005
1,282 
Other *
996
774
983
1,021
994 
 
 
 
 
 
 
Secondary energy consumption 
as steam, electricity and refrigeration energy 
(net, 1,000 TJ)
 
 
29.2
 
 
34.1
 
 
34.8
 
 
34.1
 
 
33.3
Electricity **
23,675
25,229
25,475
25,849
25,560 
Steam (net from purchase / sale)
(2,092)
722
1,054
(121)
(801)
Steam from waste heat (process heat)
8,273 
8,722
9,000
9,144
9,146 
Refrigeration energy (net from purchase / sale)
(654)
(595)
(683)
(735)
(639)
 
 
 
 
 
 
Total energy consumption 
(1,000 TJ)
 
77.3
 
85.7
 
84.9
 
83.2
 
80.8
Manufactured sales volume 
(million metric tons)
 
8.7
 
10.4
 
11.0
 
11.2
 
11.1
 
 
 
 
 
 
Energy efficiency (MWh / t) ***
4.09
3.77
3.63
3.50
3.44
*  	 e.g. hydrogen
** 	Secondary energy consumption for electricity is based on the raw material mix of the country concerned. 
***	Energy efficiency: quotient of total energy consumption and manufactured sales volume. For MaterialScience, only manufactured  sales 
volumes that also form the basis for calculating MaterialScience-specific emissions are taken into account. 
	 www.annual- 
report2013.bayer.
com/CDP-climate
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12. Environmental Protection
12.2 Air Emissions
As part of our new package of targets (see Chapter 1.3 “Targets and Performance Indicators”), the exist-
ing emissions reduction target will be raised slightly and relate to a more recent base year. This new, 
ambitious emissions reduction target will be supplemented by an energy efficiency target. Between 2012 
and 2020, Bayer intends to cut its specific greenhouse gas emissions by 20% and improve its energy 
­efficiency by 10%. 
Alongside aiming to achieve the overall Group climate target, the Bayer Climate Program reflects a com-
mitment to three specific areas:
1. More efficient production: reducing emissions at Bayer’s own production facilities by increasing 
­energy efficiency and by developing and utilizing new, innovative technologies.
 Online annex: 3-12.2-1
By the end of 2013 MaterialScience had introduced the STRUCTese™ (Structured Efficiency System  
for Energy) energy management system at 58 particularly energy-intensive facilities across the  
globe. The annual energy saving amounted to over 1.2 million MWh, while CO2 emissions were cut  
by over 360,000 metric tons per annum. German MaterialScience sites that have all implemented 
STRUCTese™ were successfully recertified to ISO 50001 in 2013.
Innovative production processes also help reduce electricity consumption and greenhouse gas  
emissions. Using oxygen depolarized cathode (ODC) technology in chlorine production cuts electricity 
requirements, for example, by 30% compared with the standard process. This was revealed during  
a two-year test period at a demonstration plant with an annual capacity of 20,000 metric tons of  
chlorine at the Krefeld-Uerdingen site in Germany. The process has been marketed globally since 
2013 so as to raise potential for improved efficiency outside Bayer too. If ODC technology were intro-
duced throughout Germany’s chlorine industry, for example, it would cut the country’s total electricity 
consumption by 1%.
A further process innovation is gas phase technology in the manufacture of the polyurethane  
precursor TDI. This technology uses up to 60% less energy and up to 80% less solvent. Among other 
things, the process is to be used at a new TDI plant with an annual capacity of 300,000 metric tons 
that is currently being built at the Dormagen site in Germany at a cost of €250 million.
Partially replacing crude oil with CO2 in the production of plastics could help conserve resources. In 
this process, polyol, another precursor required to make polyurethane, can be manufactured with the 
help of CO2.
 
A global review of energy management systems is being performed in our life science businesses 
with the goal of identifying at which production sites certification to ISO 50001 should be envisaged.
Chemical park operator Currenta started introducing energy management systems at the German 
sites in Dormagen, Leverkusen and Krefeld-Uerdingen in 2012. Certification to ISO 50001 will be 
completed by the end of 2015 at the latest. 
2. Market solutions: using Bayer products – particularly in the areas of building insulation, lightweight 
construction and agriculture – to reduce customer emissions. Our products play their part in saving 
­energy and conserving resources in many different ways. They help customers reduce emissions and 
provide them with solutions for adapting to climate change.
 Online annex: 3-12.2-2
Products and solutions from MaterialScience help conserve resources and save energy in a number  
of key industries and areas of life, at the same time also cutting emissions. Prime examples include 
lightweight construction in the automotive sector and the insulation of buildings and refrigeration 
equipment. For instance, a particularly fine-pored rigid polyurethane foam has been developed that 
can bring about a further significant improvement in the insulating performance of refrigerators and 
freezers. 
 	See Chapter 1.3
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12. Environmental Protection
12.2 Air Emissions
MaterialScience is also demonstrating possible applications for insulating materials in the  
EcoCommercial Building Program – a global network of experts for sustainable construction initiated 
by the company. It brings together over 80 specialists from a variety of sectors including lighting 
technology, energy management and renewable energies. The objective is to develop solutions for  
reducing buildings’ energy consumption and using renewable sources to cover the remaining  
requirements. Bayer itself makes use of the global network to construct its own reference buildings. 
Such buildings have so far been constructed in Germany, Belgium, the United States, India, China 
and, most recently, Brazil.
The transparent, high-performance plastic polycarbonate also paves the way for energy-efficient  
market solutions supporting, for example, energy-saving LED technology that can be used in the  
automotive industry and for innovative street lights. The latter consume up to 70% less energy than 
conventional models. 
Materials from MaterialScience also play a role in generating renewable energies. The latest develop-
ment projects include transparent polyurethane coatings for solar cells that require no outer glass 
panel, thus cutting weight, saving costs and making energy generation more efficient. In the area of 
wind power, the company has developed a new polyurethane infusion resin for rotor blades that out-
perform rotors based on the epoxy resins previously used in terms of lightness, fracture toughness 
and durability.
CropScience’s seed and crop protection strategy actively helps reduce specific greenhouse gas  
emissions per yield. Chemical crop protection products that, for example, specifically increase stress 
tolerance enable customers to make efficient use of resources so as to boost yields. CropScience has 
expanded its Tabela project in Indonesia, which focuses on rice cultivation with direct seeding, to an 
area of 10,000 ha – a 40% increase compared with 2012. Under this initiative, the company is work-
ing with international and local partners to demonstrate just what can be achieved through direct 
seeding of pregerminated rice and with the help of a customized package comprising seeds and crop 
protection. The benefits include enhanced water efficiency, lower greenhouse gas emissions, higher 
rice yields and improved incomes for farmers. It is expected that the project will be continuously  
expanded in the future, with the goal of supporting the sustainability of rice cultivation in Indonesia. 
The Republic of Indonesia has recognized CropScience’s Tabela project as a U.N. Clean Development 
Mechanism through its responsible body.
The successful continuation of the cooperation with the International Vector Control Consortium 
(IVCC) in combating malaria through targeted defense against the insects transmitting the disease  
using technological solutions such as long-lasting insecticides helps fight the growing threat of  
malaria resulting from climate change. 
3. Supporting activities: reducing emissions in non-production areas – such as the vehicle fleet and IT – 
involving the workforce in the process.
 Online annex: 3-12.2-3
Bayer maintains a variety of initiatives to cut costs in the Group’s non-production areas by saving  
energy and fuel. Examples include improvements to the vehicle fleet and in the field of information 
technology. A new reduction target was implemented in 2013 as part of the Bayer EcoFleet initiative. 
By 2020 Bayer is planning to reduce the specific CO2 emissions of the Group’s global fleet comprising 
over 25,000 vehicles to 110 g/km. In the area of communication, Bayer is increasingly using energy- 
efficient workstation solutions with integrated voice and video functions. Such IT solutions reduce the 
number of business trips necessary and thus emission levels.
Greenhouse gas emissions
Bayer reports all Group greenhouse gas emissions in line with the requirements of the Greenhouse 
Gas Protocol (GHG Protocol). Direct emissions from our own power plants, waste incineration plants 
and production facilities (corresponding to Scope 1 of the GHG Protocol) are determined at all pro-
duction locations and relevant administrative sites.
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12. Environmental Protection
12.2 Air Emissions
In the reporting year, greenhouse gas emissions remained Group-wide at about the same level as the 
previous year (+0.2%). While direct emissions fell by 3.6%, indirect emissions rose by 4.1% in 
­arithmetical terms. At the site where we consume the most power, Baytown in the United States, the 
local energy producer has updated the emission factors for electricity and steam procurement, which 
led to an arithmetical rise in our greenhouse gas emissions. 
Specific greenhouse gas emissions for 2013 rose owing to the fall in manufactured sales volume com-
pared to 2012, reaching 1.00 metric ton of CO2 equivalents per metric ton of sales product.
 Online annex: 3-12.2-4
Thanks to their environmentally friendly and resource-efficient combined heat and power (chp) tech-
nology, our power plants convert approximately 80% of the fuel energy used into electricity and heat. 
Despite this, they cause a significant proportion of the Group’s direct greenhouse gas emissions. 
It is important to note that, in line with the regulations of the GHG Protocol, we include in our figures 
all greenhouse gas emissions from the conversion of primary energy sources into electricity, steam or 
refrigeration energy, even though a significant proportion of direct emissions result from the genera-
tion of energy that is supplied to third parties (other companies). Consequently, our absolute figures 
for greenhouse gas emissions are higher than the actual emissions resulting from Bayer’s business 
activities. The level of specific greenhouse gas emissions is a more meaningful statistic. This indicates 
only the greenhouse gas emissions for which Bayer is responsible in relation to the manufactured 
sales volumes of the three Bayer subgroups.
Each year, the waste incineration plants operated by Currenta produce around 1 million metric tons 
of steam from the incineration of approximately 280,000 metric tons of hazardous waste. Compared 
to using fossil fuels, this reduces emissions by 200,000 metric tons of CO2 per year.
Information on subgroup-specific greenhouse gas emissions: 
 Online annex: 3-12.2-5
Greenhouse Gas Emissions by Subgroup and Service Company
    [Table 3.12.2-1]
Total direct and indirect emissions in million metric tons of CO2 equivalents
2009
2010
2011
2012 *
2013 *
HealthCare
0.55
0.54
0.54
0.55
0.52
CropScience
1.09
1.09
1.00
0.92
0.95
MaterialScience **
4.83
5.24
4.63
4.89
4.98
Others ***
0.02
0.02
0.01
 – 
–
Currenta ****
1.62
1.62
1.97
1.88
1.83
Specific greenhouse gas emissions for 
MaterialScience 
(metric tons of CO2 equivalents per metric ton 
of manufactured sales volume) *****
1.09
0.96
0.82
0.86
0.89
*	
Emissions from the Group’s vehicle fleet amounting to 0.10 million metric tons of CO2 equivalents are not assigned to specific 
subgroups but are reported in the Group direct emissions (see Table 3.12.2 “Group Greenhouse Gas Emissions”).
**	
In collaboration with our energy suppliers we were able to update a large proportion of the conversion factors for calculating 
­emissions. These plant-specific values are increasingly replacing the statistically determined factors of the International Energy 
Agency (IEA) previously used. This step led to a worsening of MaterialScience’s emission reduction (2005 – 2013) from 27.1%  
to 23.7%. Bayer does not intend to adjust its targets. 
***	
Total greenhouse gas emissions for Technology Services and Business Services. These companies’ production facilities were  
incorporated into other subgroups in 2012. 
****	 The emissions reported for Currenta are attributable to the provision of energy to external companies at the Chempark sites. 
*****	The by-products sodium hydroxide solution and hydrochloric acid generated during production are not included in the manufactured 
sales volume. Trade products are also not included.
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12. Environmental Protection
12.2 Air Emissions
Since 2011 the reporting of all relevant indirect Scope 3 emissions under the GHG Protocol has been 
bindingly regulated by the Corporate Value Chain Accounting & Reporting Standard. Following a 
­thorough examination Bayer has identified nine material Scope 3 categories, which are reported on in 
detail in the CDP Report.
 Online annex: 3-12.2-6
As part of the Carbon Disclosure Project – Climate Change Program, we will again be publishing a 
­detailed report for 2013 on these emissions that result from the value chain. We take particular 
­account of emissions where there is significant potential for reduction. These include our transport- 
related emissions resulting from business trips.
In 2013 the Bayer Group was involved in European emissions trading with 10 incineration plants and five 
chemical production plants. The greenhouse gas emissions of these facilities comprised approx. 2.17 mil-
lion metric tons of CO2 (incineration plants) and approx. 0.48 million metric tons of CO2 equivalents 
­(chemical production plants). 
Other direct emissions into the air
Emissions of ozone depleting substances (ODS) fell by 3.9%. Emissions of volatile organic compounds ex-
cluding methane (VOCs) dropped by around 13%. The main source of emissions remains the CropScience 
site in Vapi, India, which accounts for over 70% of all VOC emissions. The project initiated there to reduce 
these emissions is starting to have an impact: VOC emissions have fallen by a further 11%, which is equiva-
lent to 8.8% of the Group total. By 2016 at the latest, a central waste air treatment system will bring 
­together the many different emission streams in Vapi and significantly reduce these emissions. At the 
HealthCare site in Bergkamen, Germany, targeted organizational and technical improvements led to a 
­reduction of almost 70% in local VOC emissions.  
Group Greenhouse Gas Emissions *
[Table 3.12.2]
Million metric tons of CO2 equivalents
2009
2010
2011
2012
2013
Direct greenhouse gas emissions **
4.57
4.80
4.23
4.24
4.09
Indirect greenhouse gas emissions ***
3.53
3.70
3.92
4.12
4.29
Total greenhouse gas emissions
8.10
8.50
8.15
8.36
8.37
Specific greenhouse gas emissions  
(metric tons of CO2 equivalents per metric ton  
of manufactured sales volume) ****
1.23
1.09
0.95
0.98
1.00
Manufactured sales volume (million metric tons)
8.7
10.4
11.0
11.2
11.1
*	
portfolio-adjusted in accordance with the GHG Protocol
**	
In 2013, 89.5% of emissions were CO2 emissions, 10.0% N2O emissions, just under 0.5% partially fluorinated hydrocarbons and  
0.04% methane. 
***	 Typically, CO2 in incineration processes accounts for over 99% of all greenhouse gas emissions. We therefore base our calculation of 
indirect emissions on CO2 only.
****	Specific Group emissions are calculated from the total volume of direct and indirect emissions of the subgroups, including from the  
vehicle fleet, divided by the manufactured sales volume of the three subgroups. Quantities attributable to the supply of energy to external 
companies are deducted from the direct and indirect emissions. At MaterialScience the by-products sodium hydroxide solution and hy-
drochloric acid generated during production are not included in the production volume as they will occur in much smaller amounts in the 
future, thanks to measures aimed at enhancing energy efficiency. Trade products are also not included.
Emissions of Ozone Depleting Substances (ODS) *
[Table 3.12.3]
Metric tons p.a.
2009
2010
2011
2012
2013
ODS
17.5
20.8
16.3
16.3
15.7
*	in CFC-11 equivalents
VOC* Emissions
[Table 3.12.4]
2009
2010
2011
2012
2013
VOC in 1,000 metric tons p.a.
2.59
2.54
2.69
2.60
2.27
VOC in kg per metric ton  
of manufactured sales volume
0.2979
0.2436
0.2457
0.2316
0.2047
*	volatile organic compounds excluding methane
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12. Environmental Protection
12.3 Use of Water and Emissions into Water
Other direct emissions also fell in 2013.
 Online annex: 3-12.2-7
12.3 Use of Water and Emissions into Water
The continuous availability of clean water in sufficient quantities is essential for our production sites and 
the surrounding areas. However, this cannot be taken for granted in many parts of the world. We safeguard 
our water supply under the premises that industrial water usage does not lead to local problems such as a 
shortage of water for the local population.
Bayer supports the CEO Water Mandate of the U.N. Global Compact with the goal of working with key 
stakeholders to develop sustainable strategies for water usage. Our CDP Water Disclosure reports on our 
water usage and the associated risks.
 Online annex: 3-12.3-1
We are currently actively involved in the CEO Water Mandate’s working group to develop Corporate 
Water Disclosure Guidelines. We provide details of our commitment, the measures implemented and 
the results achieved within the Group in our annual CDP Water Disclosure response, which represents 
a progress report for the CEO Water Mandate. In this survey initiated by the Carbon Disclosure Project 
(CDP), 530 institutional investors call on 629 of the world’s biggest companies to disclose details of 
their water management, their company-specific water footprint, and the opportunities and risks they 
have identified in connection with the use of water. 
Based on our company’s Water Position, we have established a program for the targeted and ongoing 
improvement of our water-related operating procedures. This covers both the protection and the effi-
cient use of resources. As part of the Water Disclosure Project we have performed a screening of all 
environmentally relevant sites with respect to water shortage. Sites located in arid regions that are 
subject to particular risks when it comes to the availability and quality of water will establish a water 
management system with regional targets and measures by 2017 (see also Chapter 1.3 “Targets and 
Performance Indicators”). This will be performed on the basis of the analysis of environmental aspects 
in existing Bayer environmental management systems. Previous local reduction targets, as established 
in Spain, New Zealand and Australia, will be taken into consideration.
Our three subgroups apply specific systems and standards to tackle the respective challenges they 
face in their usage of water.
 Online annex: 3-12.3-2
In its Water Protection Directive, HealthCare commits itself to responsible water usage. For example, 
new facilities for collecting, treating and using rainwater are under construction at the Bergkamen 
site in Germany. HealthCare sees itself as duty-bound to continue developing its strategy for dealing 
with pharmaceutical residues in the environment. 
CropScience is a member of the World Business Council for Sustainable Development’s Water  
Programme Leadership Group. At the end of 2012 a pilot project was launched at the Quart de Poblet 
site in Spain. As part of the European Water Stewardship Programme, this project will evaluate the 
sustainable use of water and investigate potential for improvement. 
Other Important Direct Air Emissions
[Table 3.12.4-1]
 
2009
2010
2011
2012
2013
 
1,000 metric 
tons p.a.
1,000 metric 
tons p.a.
1,000 metric 
tons p.a.
1,000 metric 
tons p.a.
1,000 metric 
tons p.a.
CO
1.4
1.4
1.3
1.0
0.9
NOX
3.5
3.7
3.7
3.1
2.5
SOX
2.8
2.7
2.3
1.9
1.3
Particulates
0.2
0.2
0.2
0.2
0.2
	 www.annual- 
report2013.bayer.
com/CDP-water
 	See Chapter 1.3
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Bayer Annual Report 2013
12. Environmental Protection
12.3 Use of Water and Emissions into Water
MaterialScience regulates the resource-friendly use of water in its HSEQ policy. This policy  
includes a commitment to handle resources carefully. The company also feels it has a responsibility 
to continuously improve its contribution to environmental protection and energy efficiency.
Water consumption and usage
In 2013 the Group’s water consumption fell by around 23 million m³ or approx. 6%. The biggest 
­reductions were seen at the Chempark Leverkusen site in Germany and the MaterialScience site in 
­Antwerp, Belgium. The gradual closure of production facilities at the CropScience site in Institute, 
West Virginia, United States, has reduced water consumption there by almost 24 million m³, which 
corresponds to over 6% of the Group’s total water volume. Water was essentially obtained from the 
same sources as in the ­previous year. 
The total volume of once-through cooling water in 2013 was around 253 million m³. This is approxi-
mately 12% down on the previous year, which amounts to a reduction of 36 million m³ worldwide. 70% 
of all water used by Bayer is once-through cooling water. This water is only heated and does not come 
into contact with products. It can be returned to the water cycle without further treatment in line with 
the relevant official permits. The main reasons for the reduction in the volume of once-through cooling 
water are the partial closure of the CropScience site in Institute, West Virginia, United States, and the 
lower production volume at the MaterialScience site in Antwerp, Belgium. 
In our production activities, we endeavor to use water several times and to recycle it. Water is already 
recycled and reused at 36 sites, e.g. in closed cooling cycles, or through the reuse of treated wastewater 
or steam condensate recovery as process water. A total of around 11 million m³ of water was reused in 
the reporting year.
 Online annex: 3-12.3-3
The graphic shows the distribution of the different types of water usage within the Bayer Group.
*	 	The differences between volumes of water consumed and water discharged can be explained, for example, by unquantified losses 
due to evaporation, leaks, quantities of water used as raw materials in products and volumes of condensate generated through the use 
of steam as a source of energy.
**	sum from production processes, sanitary wastewater and rinsing and cleaning processes in production
Sources of water
Surface water
226 (63%)
Boreholes / springs
120 (33%)
Drinking water supplies
10 (3%)
Other sources
6 (2%)
Water discharged *
Once-through
253 (77%)
cooling water
Losses due to evaporation 12 (4%)
from cooling water circuits
Process wastewater with 51 (16%)
subsequent treatment
Process wastewater 
12 (4%)
without subsequent treatment
Water usage *
Cooling water
265 (73%)
Production **
96 (27%)
of which
11 (3%)
recycled / reused
Water Use in the Bayer Group in 2013 (million m3)
[Graphic 3.12.2-1]
Net Water Intake by Source
[Table 3.12.5]
2009
2010
2011
2012
2013
Water consumption (million m³ p.a.)
407
474
411
384
361
Proportion from surface water (%)
58
71
65
64
63
Proportion from bore holes / springs (%)
32
25
31
32
33
Proportion from public drinking  
water supplies (%)
1
3
2
2
3
Proportion from other sources, generally  
rainwater (%) *
9
1
2
2
2
*	Through an optimization in the accounting of water use, it was possible to assign most of the water to the actual sources from 2010 onward, 
thus reducing the figure for water from other sources.
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Combined Management Report
Bayer Annual Report 2013
12. Environmental Protection
12.3 Use of Water and Emissions into Water
Wastewater and wastewater discharges
The total volume of process wastewater fell by around 3.6%. All wastewater is subject to strict monitor-
ing and analysis before it is discharged into disposal channels. 81% of Bayer’s process wastewater 
worldwide is purified in wastewater treatment plants (Bayer or third-party facilities). Following careful 
analysis, the remaining 19% was categorized as environmentally safe. Part of it contained nutrients and 
was therefore used to water gardens and agricultural land. The volume of treated wastewater fell by 4% 
compared to the previous year. Its proportion of the total discharge of water remained at the previous 
year’s level. The decrease in the volume of wastewater not requiring treatment is primarily due to the 
­reduced use of once-through cooling water at the two German Chempark sites in Leverkusen and 
Krefeld-Uerdingen.  
Our goal is to minimize emissions into wastewater. In 2013 the amount of nitrogen compounds released 
into wastewater fell by 2%, and the amount of phosphate discharged decreased by 25%. 
In 2013 we recorded an increase of around 8% in total organic carbon (TOC) emissions. The main 
­generators of this were the CropScience sites in Muttenz, Switzerland, and Kansas City, Missouri, United 
States. The most important reason for this was a considerable increase in production, along with a defect 
in a heat exchanger in Muttenz. 
0
20
40
60
80
100
Million m3
2009
2010
2011
2012
76
69
72
65
Volume of Process Wastewater (million m³)
[Graphic 3.12.1]
2013
63
Emissions into Water 
[Table 3.12.6]
Absolute values
2009
2010
2011
2012
2013
Phosphorus (1,000 metric tons p.a.)
0.74
0.09
0.08
0.15
0.11
Nitrogen (1,000 metric tons p.a.)
0.64
0.49
0.53
0.70
0.69
Nitrogen (kg per metric ton of manufactured  
sales volume)
0.0737
0.0474
0.0486
0.0624
0.0620
TOC * (1,000 metric tons p.a. of organically  
bound carbon)
1.35
1.42
1.50
1.42
1.53
TOC (kg per metric ton of manufactured sales volume)
0.155
0.136
0.137
0.126
0.138
Heavy metals (1,000 metric tons p.a.)
0.0090
0.0114
0.0108
0.0098
0.0091
Inorganic salts (1,000 metric tons p.a.)
726
866
926
1,048
946
COD ** (1,000 metric tons p.a.)
4.05
4.26
4.51
4.25
4.58
*
total organic carbon
** chemical oxygen demand; calculated value based on TOC figures (TOC x 3 = COD)
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Combined Management Report
Bayer Annual Report 2013
12. Environmental Protection
12.4 Waste and Recycling
12.4 Waste and Recycling
Bayer minimizes material consumption and disposal volumes through systematic waste management. 
Safe disposal channels with separation according to the type of waste and economically expedient 
­recycling processes serve this purpose. Production fluctuations and building refurbishment / land re-
mediation work also influence waste volumes and recycling paths.
In 2013 the total volume of waste generated fell by around 11%. The main reason for this was the 
completion of a major soil remediation project at CropScience’s Thane site in India. The site has now 
been sold. Another soil remediation project, at the HealthCare site in Orizaba, Mexico, was also com-
pleted, leading to a further drop in waste volumes.  
In line with the general reduction in the volume of waste, the amount of waste disposed of fell  
by 10.4%. This had no significant effect in 2013 on the distribution of waste among the different 
­disposal channels, however.
 Online annex: 3-12.4-1
Hazardous Waste * Generated by Means of Disposal
[Table 3.12.7-2]
2009
2010
2011
2012
2013
1,000 metric 
tons p.a.
1,000 metric 
tons p.a.
1,000 metric 
tons p.a.
1,000 metric 
tons p.a.
1,000 metric 
tons p.a.
Total volume of hazardous  
waste generated 
375
354
474
603
467
Amount removed to landfill 
89
56
122
175
53
Amount incinerated/recycled 
286
298
352
428
414
*	only waste generated by Bayer
Waste by Means of Disposal
[Table 3.12.7-1]
2009
2010
2011
2012
2013
Total volume of waste disposed of *  
(1,000 metric tons p.a.)
918
809
966
1,021
915
Proportion removed to landfill (%)
40
32
38
36
32
Proportion incinerated (%)
28
36
33
33
38
Proportion recycled (%)
31
31
28
29
27
Waste that cannot be unambiguously  
assigned (%)
1
1
1
2
2
 * Bayer serves as a certified waste disposal plant operator at various sites. At these locations, Bayer disposes not only of its own 
waste but also of waste from third parties (companies not belonging to the Bayer Group). For that reason the volume of waste disposed 
of differs slightly from the volume of waste generated by Bayer. 
Waste Generated * 
[Table 3.12.7]
2009
2010
2011
2012
2013
Total waste generated (1,000 metric tons p.a.)
914
807
958
1,014
899
Hazardous waste generated **
375
354
474
603
467
of which hazardous waste from production
302
325
354
397
417
Specific volume of hazardous  
production waste (%)
3.47
3.12
3.23
3.54
3.77
*	 only waste generated by Bayer
**	definition of hazardous waste in accordance with the local laws in each instance
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Bayer Annual Report 2013
12. Environmental Protection
12.5 Biodiversity
Recycling
In addition to satisfying economic and environmental criteria, the recycling of our materials also has to 
comply with legal requirements. This results in restrictions, particularly in the areas of pharmaceuticals 
and crop protection. Throughout the Group, we are developing opportunities for recycling within the 
framework of legal regulations.
In the reporting period, the volume of waste recycled was just under 250,000 metric tons (27%) of the 
total volume of waste disposed of, which is two percentage points down on the previous year. Numerous 
examples of recycling measures provide proof of Bayer’s commitment to recycling.
 Online annex: 3-12.4-2
At the Bergkamen site in Germany, HealthCare binds iodine released during the incineration of waste 
from X-ray contrast medium production and processes it into an iodide solution that can be marketed. 
This process enabled us to recover and recycle around 220 metric tons of iodine in 2013.
CropScience supports the drawing up of directives on the return of crop protection product packaging 
in collaboration with national industrial associations. The subgroup is also globally committed to  
establishing efficient take-back systems with the corresponding reclamation organizations. In 2013, 
2,250 metric tons of rinsed primary packaging was collected and, to a great extent, recycled (about 
85% of the total volume). The PAMIRA system for the safe and environmentally responsible disposal  
of crop protection and liquid fertilizer packaging was introduced on a voluntary basis in the 1990s  
by the crop protection industry and the commercial sector. The amount of packaging taken back in 
Germany has been steadily growing since 2010. In 2013, 2,666 metric tons of packaging were 
­accepted and passed on for controlled, environmentally responsible recycling.
MaterialScience supports the recycling of its plastic products and items made from them, among  
other things by working extensively in associations and bodies such as PlasticsEurope’s sustainability 
platform. The subgroup is also a shareholder of BKV GmbH, German industry’s competence platform 
for recycling plastic. In its own production operations, too, MaterialScience uses material recycled 
from plastic waste. Such high-quality secondary raw materials are used to make certain engineering 
thermoplastics. Current products include a flame-retardant plastic compound comprising 30% old 
PET water bottles that is used to make TV housings.
In 2013 MaterialScience also became involved in PlasticEurope’s “Zero Pellet Loss” initiative, which 
aims to prevent plastic granules from being released at any stage in the life cycle of thermoplastic 
products. In particular, production and logistics processes are to be reviewed. 
Currenta has developed a process for the thermal treatment of composite materials. This process  
destroys all organic, flammable substances, converts the heat released into usable steam and releases 
the usable precious metals with a recovery rate of up to 99%. Recycling industrial waste, materials 
from demolitions and chemical waste from the Chempark sites is also part of Currenta’s remit. This 
also involves the inspection of buildings for contamination, the environmentally sound disposal of 
rubble and the reuse of all recyclable materials. In 2013 Currenta’s recycling measures resulted in 
around 46,000 metric tons of construction materials, 40,000 metric tons of metal and 12,000 metric 
tons of chemicals such as sulfuric acid, solvents and iodine being returned to the material cycle.
12.5 Biodiversity
A new, Group-wide biodiversity position has applied at Bayer since the beginning of 2013. This incor-
porates the existing CropScience subgroup position. It takes into account influences on biodiversity 
along the whole value chain and the sustainable use of raw materials. Particular attention is paid to 
product innovations that are of specific benefit to biodiversity. 
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Combined Management Report
Bayer Annual Report 2013
12. Environmental Protection
12.5 Biodiversity
In this position, all subgroups commit themselves to the Convention on Biological Diversity. Under this 
Convention, the industrialized nations entered into an undertaking in October 2012 to provide develop-
ing countries with greater support in implementing international biodiversity goals.
 Online annex: 3-12.5-1
CropScience’s research and development activities include improving plant health, providing  
assistance in tackling invasive species, and supporting and implementing measures to promote  
integrated crop management. Farmers and breeders can use CropScience products to improve  
their production efficiency with the goal of reducing the area needed for agricultural use, which in 
turn leaves room for the preservation of valuable ecosystems with a large diversity of species.
Great importance is also attached to the protection of biodiversity as part of the European Union’s 
reform of its Common Agricultural Policy in line with the Convention on Biological Diversity. 
Building on the measures initiated as part of the International Year of Biodiversity in 2010, Crop-
Science started a raft of other projects in 2011 and continued them in 2013. The subgroup thus also 
supports the European Union’s Action Plan for Biodiversity in the key areas that we can influence.  
To protect and encourage pollinating insects, several strips of flowers have been planted in front of 
and on the grounds of the CropScience site in Monheim, Germany. Under the motto “Blühende 
Wege” (Areas in bloom), the subgroup is appealing to municipalities, beekeepers and individuals to 
turn unused strips of grass into feeding areas for bees. The goal is to trigger a dynamic process that 
will create a network of thriving biotopes throughout Germany. A total of nine sites were supported 
with special seeds in 2013 and an expansion of the initiative is planned for 2014. 
In the Upper Rhine Plain, Germany, a project examining the influence of strips of flowers, beetle 
banks and other measures on the populations of wild bees and butterflies is already in its fourth year.
The Bayer Forward Farming project earmarked for roll-out throughout Europe was started in 2011 
with the goal of demonstrating that it is possible to strike a successful balance between productive 
agriculture on the one hand and the maintenance and promotion of biodiversity on farmland on the 
other. Farms in Germany, Belgium, the United Kingdom and France are currently involved, and further 
activities are planned in the Netherlands and Poland.
HealthCare also attaches great importance to maintaining biological diversity. As a member of the  
Association of Research-Based Pharmaceutical Companies, it supports the association’s position  
on the U.N. Convention on Biological Diversity. A new biodiversity policy has been in place at Health-
Care’s sites since June 1, 2013. Among other things, this takes into account that the subgroup  
concentrates on the chemical synthesis of substances using state-of-the-art technologies in medicinal, 
combinatorial and computational chemistry. Research on natural substances is not a focal point of  
its work, accounting for less than 5% of its research activities. If such substances are used during  
research into new pharmaceuticals, they are first checked with respect to the Convention on  
Biological Diversity.
A Group-wide directive stipulates that new production sites must not be set up in areas that are protect-
ed by statutory requirements of the countries concerned relating to natural characteristics, biodiversity 
or other factors.
 Online annex: 3-12.5-2
Using our global site register, we compared the geographical coordinates of relevant production sites 
against those of internationally recognized protected areas (ASEAN Heritage, Barcelona Convention, 
UNESCO-MAB Biosphere Reserve, Wetlands and World Heritage Convention and Ramsar Convention). 
This analysis showed that three of our sites lie less than three kilometers from protected areas. These 
are Schorren van de Benenden Schelde, Belgium; the Wadden Sea of Lower Saxony, Germany; and 
Blesbokspruit, South Africa. For example, we regularly check water usage and discharge at water-in-
tensive sites so as to prevent significant extractions of water and wastewater discharges that could 
adversely affect the protected areas.
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Combined Management Report
Bayer Annual Report 2013
12. Environmental Protection
12.6 Environmental Incidents
12.6 Environmental Incidents
Bayer uses the term “environmental incidents” to define incidents in the course of our business activities 
that result in the release of substances into the environment. Factors that determine whether there is a re-
porting obligation include, in particular, the nature and quantity of the substance, the amount of damage 
caused and any consequences for nearby residents. In accordance with our internal voluntary commit-
ment, we report any leakage of substances with a high hazard potential from a quantity of 100 kg upward. 
Despite extensive safety precautions and training, it is unfortunately impossible to prevent the occur-
rence of environmental incidents altogether. In 2013 the number of environmental incidents rose from 
five to 10, and the number of transport incidents from six to 11. Five of these come under both 
categories. A detailed description of environmental and transport incidents: 
 Online annex: 3-12.6-1
Environmental and Transport Incidents
[Table 3.12.7-3]
Environment
Transport
Personal 
injury
CropScience, India, February 12, 2013 
While being transported by ship to India, a big bag containing the product Nativo™  was ripped open 
owing to the container of another company being inadequately secured. Around 400 kg of the  
product was dispersed on the ship. The carrier received detailed cleaning and decontamination  
instructions.
No
CropScience, Muskegon, Michigan, United States, February 28, 2013 
Methanol gas escaped during routine maintenance. The incident was reported to the authorities,  
because the locally permitted threshold was exceeded. An accident analysis was performed,  
the responsible technical staff received appropriate training and the control system was reviewed.
No
CropScience, Vapi, India, March 13, 2013 
A plastic pipe leading to a tank ruptured and 20 m³ of a liquid containing hydrogen chloride (HCl) 
leaked out. The product was collected and the remnants neutralized.
No
MaterialScience, Knoxville, Tennessee, United States, April 4, 2013 
A fork-lift truck damaged a transport container during loading of the adhesive Desmodur™. Around 
225 liters of the product leaked out inside a container and was properly soaked up and disposed of.
No
MaterialScience, sea route between Brazil and Argentina, April 9, 2013 
During routine cleaning of a ship’s tank at sea, 500 metric tons of polyol (non-toxic polyurethane  
precursor) was accidentally mixed with around 10 metric tons of seawater. This resulted in 35 metric 
tons of polyol being released into the Atlantic Ocean.
No
CropScience, Lubbock, Texas, United States, May 8, 2013 
One of six hydrogen chloride tanks on a supplier’s trailer sprung a leak. The cause was initially  
unknown. An emergency plan was initiated, with around 100 residents living within a radius of 800 m 
being evacuated as a precaution. Once the leak had been plugged, they were able to return to their 
homes. Bayer asked the responsible supplier to perform a detailed investigation to analyze the cause 
of the incident. 
No
CropScience, Kansas City, United States, May 11, 2013 
The actuation of a pressure relief valve resulted in approximately 790 kg of ammonia being released 
into the atmosphere. The cause was the decomposition of a valve seal. This defect was corrected 
through the use of another, chemically resistant seal.
No
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Combined Management Report
Bayer Annual Report 2013
12. Environmental Protection
12.6 Environmental Incidents
Environmental and Transport Incidents
 [Table 3.12.7-3 (continued)]
 
Environment
Transport
Personal 
injury
MaterialScience, Krefeld-Uerdingen, Germany, June 19, 2013 
A residue drain valve in a hydrochloric acid line that connected two tank farms and had a maximum fill 
volume of approximately 20 m³ developed a defect. The line was not in operation at the time. As a 
result of hydrostatic pressure, the acid leaked out at the location of the defect. The Fire Department 
prevented any more serious damage by creating a wall of water. It was possible to drain off a large 
part of the leaked acid into the in-house sewerage system. The embankment of the adjacent internal 
rail line was contaminated as a result of this incident and was subsequently decontaminated properly.  
No
MaterialScience, A3 freeway near Neustadt, Germany, June 20, 2013 
A traffic accident involving a van and a truck occurred on the A3 freeway. Both vehicles were loaded 
with Bayer materials. Approximately 3 metric tons of these materials escaped but they were not haz-
ardous. The two injured drivers were taken to hospital and released after a short time. The freeway 
had to be closed while the debris was cleared away. The regional media visited the scene and report-
ed on the incident.
Yes
MaterialScience, near Padang, Sumatra, Indonesia, June 26, 2013 
A traffic accident resulted in a contractor’s truck overturning and plunging down a 200 m cliff.  
The driver and co-driver were both killed. Around 9 metric tons of polyol (non-toxic polyurethane  
precursor) escaped.
Yes
MaterialScience, Irving, Texas, United States, July 17, 2013 
A transport company reported a leak in a 200-liter metal drum filled with Desmodur™. A drum 
transporter had accidentally collided with and punctured the drum during loading. Approximately 200 l 
of the product leaked out. No one was injured and no emissions were released into the environment.  
A specialist company was brought in to clean up and dispose of the product that had leaked.
 
No
CropScience, Guatemala, August 3, 2013 
A truck loaded with CropScience products collided with an oncoming truck. The truck that was hit 
overturned and approximately 290 kg of product leaked onto the road, some of it reaching the  
roadside ditch. The road was closed for 8 hours. The product and the contaminated soil were removed 
and disposed of. Investigations revealed that the volume and type of product released did not meet 
the criteria for an environmental incident.
 
No
MaterialScience, Ham/Hasselt, Belgium, August 13, 2013 
A tire blowout caused a truck loaded with 22.9 metric tons of polyol (no hazardous materials) to  
overturn and catch fire on the E313 freeway in Belgium. The driver was not injured. No product 
leaked out thanks to the tank container’s special leak protection. The fire was put out and the Belgian 
police made the truck safe.
 
No
CropScience, Brazil, September 15, 2013 
A truck loaded with CropScience products collided with an oncoming truck. The loaded truck  
overturned and a large part of the load fell onto the road. A number of drums were so badly  
damaged that the product leaked onto the road. All necessary measures were taken to prevent  
any environmental pollution. The undamaged products were returned to the production site  
(Belford Roxo) and reprocessed. All waste was transported to a waste incineration plant with the  
help of a specialist company. The road had to be closed for 5 hours.
 
No
MaterialScience, Hürth, Germany, October 29, 2013 
The driver of a tanker loaded with 30% hydrochloric acid drove too quickly on the way to 
a customer. The vehicle tipped on its side. Since the tank and its shell were not seriously damaged, 
only small amounts of hydrochloric acid (less than 50 l) leaked out. The investigation into the precise 
damage caused is still under way. The driver suffered minor injuries, and was taken to hospital.  
Six people (first-aiders) were also taken to hospital because they had breathed in the fumes from the 
hydrochloric acid.
Yes
MaterialScience, Hong Kong, December 3, 2013 
While a consignment of polyol (non-toxic polyurethane precursor) was being transported to  
Hong Kong by sea, a leak was discovered in one of the product containers (a flexi bag). Since the 
threshold of 1,000 kg for the release of non-hazardous products was slightly exceeded (1,123 kg),  
we classified this as a transport and environmental incident.
No
Of the 16 incidents reported, 10 were environmental incidents and 11 transport incidents.  
Five incidents fell into both categories, resulting in them (intentionally) being counted twice.
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12. Environmental Protection
12.6 Environmental Incidents
Incidents Observed by Stakeholders
[Table 3.12.7-4]
The following incidents came to the attention of our stakeholders, but are not classed as environmental or transport incidents according  
to Bayer criteria.
Location of the incident 
Description
Comments
HealthCare, Lerma,  
Mexico, February 24, 2013
Stolen truck
A truck loaded with HealthCare products was stolen at a faked vehicle checkpoint  
near Guadalajara. The driver, assistant and security personnel reported back the next 
day. The incident was reported to the local authorities.
HealthCare, Wuppertal, 
Germany, March 10, 2013
Methanol leak
Approx. 600 l of methanol leaked in a HealthCare plant. The product was soaked up 
immediately and incinerated as thermal waste. There was no impact outside the plant.  
MaterialScience, Caojing, 
China, May 13, 2013
Fatal workplace injury of a 
contractor’s employee
There was a fatal injury during work at a construction site on the Caojing production 
location. Heavy metal sheets were being lifted and moved using a crane. During this  
maneuver, one of the sheets escaped from its binding and injured a construction worker 
so severely that he later died in hospital. Bayer classified this accident in the “Fatal 
workplace injury” category and subjected it to a thorough accident investigation.
HealthCare, Bitterfeld, 
Germany, June 3, 2013
Flooding / disaster alert
The Bayer Bitterfeld site was threatened by floodwater. The company established  
a temporary Emergency Task Force in Bitterfeld which was in contact with the local 
community’s emergency task force. Appropriate precautions in the plants ensured  
that this incident had no impact.
MaterialScience,  
Brunsbüttel, Germany, 
September 24, 2013
People injured by carbon 
monoxide
During the start-up of a production facility at the Brunsbüttel production site, carbon 
monoxide escaped through a leaky underpressure safety feature. Five external employees 
who were in the immediate vicinity of the leak were taken to the company’s Medical 
Department or to nearby hospitals. They were able to be released the same or the  
following day. Bayer classified this accident in the “Workplace injury” and “Unsafe plant 
status (LoPC)” categories, and subjected it to a thorough accident investigation.
HealthCare, Wuppertal, 
Germany, October 6, 2013
Ruptured water main in 
the public supply network
There was a ruptured water main on a major public road. Bayer Site Security checked 
the neighboring construction sites and buildings for possible water ingress. Various 
kinds of damage were discovered and arrangements made for these to be rectified. 
HealthCare, Orizaba  
Proquina, Mexico,  
October 23, 2013
Fatal workplace injury  
of a Bayer employee;  
explosion and fire  
in drying area
There was an explosion in a drying area of a facility for intermediates at the Orizaba site. 
The Fire Department brought the resulting fire under control after a short time. One 
employee was killed and another taken to hospital with burns as a result of the accident. 
The public prosecutor opened an investigation to examine the cause and course of the 
accident. A team of experts from Bayer is also investigating the accident. Bayer classi-
fied this accident in the “Fatal workplace injury” category.
HealthCare, Wuppertal, 
Germany, November 11, 
2013
Dripping tank car (water)
A liquid was found to be dripping on public property from a rail tank car hired by 
HealthCare in Wuppertal that was filled with mixed organic solvents. The Wuppertal 
municipal Fire Department and the Bayer Safety and Security Control Center were  
informed. Due to the official tank car signage, it was assumed as a precaution that this 
was a solvent leak. Tests on the sample taken revealed the leaking liquid to be water, 
which had probably accumulated as rainwater in the cladding of the tank car.
HealthCare, Chengdu,  
China, December 25, 2013
Fire on a building site
During welding work, small particles and sparks fell into a container of isoamyl acetate, 
causing it to ignite. Employees were able to adequately extinguish the fire.
CropScience, Vapi, India, 
December 27, 2013 –  
January 2, 2014
Production facilities  
downtime
The production facilities at CropScience‘s Vapi site were shut down as part of scheduled 
downtime. This was due to an inspection of the entire industrial park (12 companies) by 
the local state authorities. This incident was reported in the local press. 
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12. Environmental Protection
12.7. International Standards and Certifications
12.7. International Standards and Certifications
To ensure high health, safety, environmental protection and quality (HSEQ) standards throughout the 
Group, Bayer has established management systems that are aligned to acknowledged international stand­
ards and are regularly evaluated and updated. They form an integral part of all our business processes. 
Regular upkeep of the management systems and appropriate training and certification also demonstrate 
our commitment to the guidelines of the chemical industry’s Responsible Care Global Charter.
With regard to the coverage of our business activities with HSEQ management systems based on energy 
consumption, around 99% of our production sites had an HSE management system audited internally by 
Bayer and over 90% of our Group-wide business activities were certified externally to internationally rec-
ognized standards in 2013. As part of a Group-wide certification plan, we are seeking to further increase 
the level of coverage separately for each subgroup by 2017. The goal is for each subgroup to have a 
­coverage based on energy consumption of at least 80% by then. This applies to both environmental and 
occupational safety management.  
All subgroups also have industry-specific international quality management systems such as ISO 9001, 
ISO 17025, ISO 13485 or GMP (Good Manufacturing Practice). Group-wide, coverage is over 91%.
In 2012 we started applying ISO 50001, which defines requirements for introducing, implementing, 
maintaining and improving an energy management system. So far, the MaterialScience sites in 
Brunsbüttel, Dormagen, Leverkusen and Krefeld-Uerdingen (all Germany) have gained certification. In 
2013 CropScience completed the implementation of energy management systems at the Knapsack and 
Monheim sites in Germany with certification to ISO 50001. Together with the EMAS-certified site in 
Frankfurt, three of the German sites have thus been prepared to meet the Group’s energy efficiency tar-
get. HealthCare has started implementing ISO 50001 and the certification process at the Bitterfeld site 
was completed in 2013. By 2015 the subgroup intends to introduce energy management systems certi-
fied to ISO 50001 at all its German production sites. Currenta has also started introducing an energy 
management system. 
0
3
6
9
12
15
Number
2009
2010
2011
2012
13
7
3
5
Number of Environmental Incidents
[Graphic 3.12.2]
2013
10
Certifications *
[Table 3.12.8]
 
2011
2012
2013
ISO 14001 certification / EMAS validation
66
84 
84 
HSEQ management systems based on other external standards **
54 
58 
67 
Certified to OHSAS 18001
27
30 
30 
HSE management systems audited by Bayer
99
99 
99 
* 	 % of business activities (based on energy consumption)
** e.g. RCMS (Responsible Care Management System) in the United States or Industria Limpia (Clean Industry) in Mexico
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13. Social Commitment
13. Social Commitment
Throughout the world, Bayer is active in a variety of ways in the core fields of education and science, 
health and social needs, and sports and culture. With its foundations, the Bayer Group promotes cut-
ting-edge research, talented individuals and innovative educational and social projects. In 2013 Bayer 
provided some €50 million (2012: €49 million) for these activities. As with its business operations,  
Bayer’s social commitment is based on innovation and pioneering spirit.
 Online annex: 3-13-1
Expenses for Social Initiatives in 2013
[Table 3.13.0-1]
€ million
Share of total  
in %
Share of category  
in %
Education and science
14
28
School projects, focus: natural science and technology
4
30
Medical and clinical research
3
23
Science and research support (e.g. awards, endowed chairs,  
research funding, symposia)
3
20
Nature and environment, environmental education
2
15
Scholarships for students, talent management programs
2
13
Health and social needs
17
34
Health care provision, social medicine, emergency medical care
9
51
Community projects
3
19
Health education, patient groups
3
18
Disaster aid, reconstruction
1
6
Volunteering projects
1
6
Sports and culture
19
38
Bayer clubs (sports, leisure, culture)
14
75
Culture incl. Bayer Arts & Culture
5
24
Other sports projects and projects in the communities surrounding the sites
0
1
Total
50
€ 50 
million
for the development  
of society
Expenses for Social Initiatives
[Table 3.13.1]
Main sponsorship areas
2012
2013
€ million
€ million
Education and science
13 
14 
Health and social needs
16 
17 
Sports and culture
20 
19 
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13. Social Commitment
The Foundation & Donations Management Department within the Corporate Office of Bayer AG is re-
sponsible for strategically aligning and coordinating our social commitment, as well as for monitoring 
and reporting activities. Social initiatives are implemented decentrally.
 Online annex: 3-13-2
All project sponsoring is subject to the provisions of a Group-wide donation directive that establishes 
a framework for its content-related and strategic alignment, as well as the proper handling of the 
funds. We steer the selection of the projects through allocation guidelines comprising, among other 
aspects, the indicators “social relevance” and “thematic proximity to the company’s fields of expertise.” 
In all activities, we focus on countries in which Bayer is represented and on areas that are of  
relevance to the company’s business strategy. Neither Bayer AG nor other Bayer Group companies 
make donations to political parties or associations affiliated with them.
Education and science
The Bayer Science & Education Foundation supports young scientists and renowned researchers across 
the globe through scientific awards, endowed chairs and research scholarships. In 2013 the foundation ap-
proved total funding of €2 million for this purpose.
The international Bayer Early Excellence in Science Award is presented annually in three categories: biolo-
gy, chemistry and materials. The Bayer foundation presents this award to talented young scientists in the 
early stages of their academic careers. Further honorary awards presented by the Bayer Science & Educa-
tion Foundation for scientific achievements include the Otto Bayer Award, the Hansen Family Award and 
the Bayer Thrombosis Research Award. 
Bayer also supports the scientific instruction of young people. We want to help awaken and promote an in-
terest in science, technology and medicine through initiatives for schoolchildren and scholarship pro-
grams. In this way, we are helping talented young people at an early age who have the potential to become 
leading-edge researchers.
 Online annex: 3-13-3
The Bayer School Support Program specifically assists teachers near Bayer’s German sites who  
organize scientific and technical instruction in an innovative way. The foundation supported the  
implementation of such ideas with total funding of €500,000 in 2013. 
The international Bayer education initiative “Making Science Make Sense” aims to help elementary 
school students experience the world of science through target-group-oriented experimental  
instruction. In 2013 we once again implemented locally specific programs in North and South America, 
Europe and Asia, some of which involve volunteering activities by our employees.
 
The Bayer foundation established a total of 100 German scholarships at 22 universities throughout 
the country, making available €180,000 for this purpose in the reporting period. The foundation  
accepted 52 students into the international scholarship program in 2013, approving funding  
of €200,000. In addition, 10 schoolchildren were accepted into the Science Teens Program and  
20 physicians from 16 countries were included in the Young Physician Leaders Program. In addition 
to funding, the Bayer scholarship students also benefit from the opportunity to make valuable  
contacts at the company.
The Humboldt-Bayer Research Fellowship was initiated in 2013, marking the first time the Alexander 
von Humboldt Foundation has collaborated with an industrial company. The program gives outstand-
ing young international researchers the opportunity to spend time conducting research in Germany 
and to engage in intensive exchange with Bayer’s science networks. Bayer made available total fund-
ing of €500,000 for this purpose.
Promoting talent and 
pioneering spirit
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13. Social Commitment
Health and social needs
We work to improve health services and social conditions in many regions of the world. To achieve 
this objective, we cooperate with partners within international programs and support local initiatives.
One of the projects Bayer maintains in the area of public health is a collaboration with the Chinese 
government aimed at promoting advanced training for physicians in rural, medically underserved  
areas of western China. Supplementing Bayer’s economic activities in its core business is the Access 
to Medicine (ATM) strategy. As part of this program, the company supplies medicines free of charge 
to combat “neglected” tropical diseases. 
To mark the company‘s 150th anniversary, the Bayer Cares Foundation for the first time supported 
employees around the world who endeavor to improve living conditions in the communities sur-
rounding the company’s sites through their own project ideas.
 Online annex: 3-13-4
In its volunteering program, the foundation made available total funding of €680,000 in 2013 for 172 
employee and citizen projects in 50 countries. The foundation especially supports measures in its 
core areas of promoting education and health, and meeting basic social needs. Their goal is to help 
close supply gaps.
Disaster aid is another area of activity for our social needs foundation. While the company itself pro-
vides areas hit by natural disasters with immediate aid in the form of donations of money and goods, 
the foundation supports sustainable reconstruction projects to help people who find themselves in a 
state of hardship. 
Sports and culture
Bayer has been actively involved in supporting culture and sports for more than a century, thereby making 
a sustainable contribution to the cultural life and sports opportunities at its sites in Germany. In 2013 the 
company provided funding of some €13 million for recreational, disabled and competitive sports activities. 
 Online annex: 3-13-5
Bayer is realigning its charitable sponsorship of sports in the communities near its Lower Rhine  
sites in Germany. These activities will be gradually concentrated at six major clubs by 2015. Bayer’s 
involvement in professional soccer at Bayer 04 Leverkusen GmbH is not part of its social sports  
sponsorship activities because it belongs to the company’s image advertising.
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Bayer Annual Report 2013
Combined Management Report
Report on Economic Position
Fiscal 2013:
Continuous growth in Bayer’s Anniversary Year
// Dynamic development in the Life Sciences, MaterialScience 
below expectations 
// Outstanding growth for recently launched pharmaceutical 
products
// Group sales €40.2 billion (Fx & portfolio adj. + 5.1%) 
// EBIT €4.9 billion (+ 25.6%)
// EBITDA before special items €8.4 billion (+ 1.5%)
// Net income €3.2 billion (+ 32.7%)
// Core earnings per share €5.61 (+ 5.8%)
// Forecast for 2014: further growth in sales and earnings
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Combined Management Report
Bayer Annual Report 2013
14. Overview of Sales, Earnings and Financial Position
14. Overview of Sales, Earnings and
Financial Positionr­
Full yeaR 2013
In 2013 we saw continuous growth and met important business objectives. HealthCare posted excel-
lent sales gains for its recently launched pharmaceutical products. CropScience was very successful in 
a positive environment. In the Life Sciences, we continued to strengthen our businesses through 
 acquisitions. We achieved our operational targets overall despite substantial negative currency effects. 
The business of MaterialScience continued to be affected by a difficult market situation. We remain 
optimistic for 2014 and plan to further improve sales and earnings.
Group sales advanced by 5.1% on a currency- and portfolio-adjusted basis (reported: +1.0%) to 
€40,157 million (2012: €39,741 million). Sales at HealthCare climbed by 6.8% (Fx & portfolio adj.). 
CropScience posted a substantial 9.4% sales gain (Fx & portfolio adj.). Sales at MaterialScience  
were level with the prior year (Fx & portfolio adj. +0.4%).
4% – 5% increase 
to approx. €41 billion
Mid-single-digit  
percentage increase
High-single-digit  
percentage increase
5.8% increase
5.1% increase 
to €41.6 billion
5.6% increase
11.7% increase
* currency- and portfolio-adjusted
Group sales*
Forecast issued in  
February 2013 (calculated 
at average exchange rates 
for Q4 2012)
Target attainment  
(at actual exchange rates 
for 2013) 
Target attainment  
(calculated at average 
exchange rates for  
Q4 2012) 
EBITDA  
before special items
Core earnings 
per share
5.1% increase 
to €40.2 billion
1.5% increase
Target at tainment in 2013
Changes in Sales
[Table 3.14.1]
2012
2013
 %
%
Volume
+ 4.7
+ 4.3
Price
+ 0.6
+ 0.8
Currency
+ 4.0
– 4.4
Portfolio
– 0.5
+ 0.3
Total
+ 8.8
+ 1.0
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14. Overview of Sales, Earnings and Financial Position
EBIT of the Bayer Group rose by 25.6% to €4,934 million (2012: €3,928 million) after net special 
charges of €839 million (2012: €1,711 million). The special charges mainly included €358 million in 
restructuring expenses and €276 million in additional charges related to legal claims. EBIT before 
­special items came in at €5,773 million (2012: €5,639 million). EBITDA before special items increased 
by 1.5% to €8,401 million (2012: €8,280 million). Earnings growth was attributable to good sales de-
velopment in the Life Science businesses, while MaterialScience saw earnings decline due to market 
factors. Negative currency effects diminished Group earnings by about €260 million. In addition, 
­expenses for long-term stock-based compensation increased by €70 million in light of the pleasing 
market performance of Bayer stock. EBITDA before special items at HealthCare advanced by 4.2% to 
€5,334 million (2012: €5,119 million) as a result of the positive business development in the Pharma-
ceuticals segment. EBITDA before special items in Crop­Science rose by 11.0% to €2,248 million (2012: 
€2,025 million), largely on account of significant volume increases and higher selling prices. EBITDA 
before special items of MaterialScience fell by 15.1% to €1,072 million (2012: €1,263 million), mainly 
because of significantly higher raw material costs.
2012
2013
2012
2013
2012
2013
2012
2013
Q2
Q3
Q4
Q1
€ million
€ million
Bayer Group 
Quarterly EBIT
[Graphic 3.14.2]
Bayer Group
Quarterly EBITDA Before Special Items
[Graphic 3.14.3]
Q2
Q3
Q4
2012
2013
2012
2013
2012
2013
2012
2013
Q1
2012
2013
Total
3,928
4,934
500
0
1,000
1,500
2,500
2,000
Total
2012
2013
500
0
1,000
1,500
2,500
2,000
8,280
8,401
2012 figures restated
2012 figures restated
1,631
1,771
740
1,287
828 
1,221
729
655
2,443
2,453
2,169
2,195
1,842
1,984
1,826
1,769
2012
2013
Q1
Q2
Q3
Q4
Total
Bayer Group Quarterly Sales
[Graphic 3.14.1]
4,640
4,862
35,101
35,295
€ million
39,741
40,157
Total
  Germany         
  Other countries
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
8,741
1,147
2012
2013
2012
2013
2012
2013
2012
2013
9,860
9,888 
10,054
10,266
10,166
10,360
9,661
9,643
8,983
9,151
1,283
1,209
8,772
9,027
8,513
8,420
8,789
1,282
1,139
1,148
1,223
1,071
2012 figures restated
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14. Overview of Sales, Earnings and Financial Position
After a financial result of minus €727 million (2012: minus €752 million), income before income taxes 
amounted to €4,207 million (2012: €3,176 million). After tax expense of €1,021 million (2012: €723 mil-
lion) and non-controlling interest, net income in 2013 came in at €3,189 million (2012: €2,403 million). 
Earnings per share were €3.86 (2012: €2.91). Core earnings per share advanced by 5.8% to €5.61 (2012: 
€5.30), calculated as explained in Chapter 16.3 “Core Earnings Per Share.”
Gross cash flow climbed by 28.0% in 2013 to €5,832 million (2012: €4,556 million), mainly because of 
the improvement in EBIT. Cash tied up in working capital increased considerably for business-related 
reasons. Net cash flow moved ahead by 14.2% to €5,171 million (2012: €4,530 million). Net financial 
debt fell by €0.3 billion against December 31, 2012, to €6.7 billion. The net defined benefit liability for 
post-employment benefits – the difference between benefit obligations and plan assets – declined from 
€9.2 billion at the end of 2012 to €7.3 billion, mainly due to a rise in long-term capital market interest 
rates. 	
See Chapter 16.3
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
Q2
Q2
Q3
Q3
Q1
Q1
€ million
€ million
2012
2013
2012
2013
Q4
Q4
4,556
5,832
2012
2013
2012
2013
Total
Total
4,530
5,171
500
0
1,000
1,500
2,000
500
0
1,000
1,500
2,000
2012 figures restated
2012 figures restated
Gross Cash Flow by Quarter
[Graphic 3.14.4]
Net Cash Flow by Quarter
[Graphic 3.14.5]
1,600
1,807
1,224
1,680
1,006
1,367
726
978
237
327
1,401
1,536
1,986
1,728
906
1,580
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14. Overview of Sales, Earnings and Financial Position
Fourth quarter of 2013
Group sales in the fourth quarter of 2013 rose by 6.4% (Fx & portfolio adj.) to €9,888 million (reported: 
+0.3%). Sales of HealthCare gained 7.2% (Fx & portfolio adj.) to €4,939 million (reported: +0.4%). 
Business in the Pharmaceuticals segment expanded by 11.5% (Fx & portfolio adj.) to €2,975 million 
(reported: +3.8%), driven by the encouraging development of our recently launched products. Sales at 
Consumer Health came in slightly ahead of the prior-year quarter at €1,964 million (Fx & portfolio adj. 
+1.0%; reported: –4.4%). CropScience sales climbed by 12.8% (Fx & portfolio adj.) in the fourth quar-
ter to €1,951 million (reported: +5.1%) as a result of higher volumes. Sales of MaterialScience rose by 
1.6% (Fx & portfolio adj.) against the prior-year period, to €2,691 million (reported: –2.5%) thanks to 
volume increases. 
EBIT of the Bayer Group declined by 10.2% in the fourth quarter of 2013, to €655 million (Q4 2012: 
€729 million). Earnings were diminished by net special charges of €439 million (Q4 2012: €424 million). 
The special charges mainly included €192 million in restructuring expenses and €182 million in addi-
tional charges related to legal claims. Of the latter amount, €155 million related to claims concerning 
Yasmin™ / YAZ™ in the United States. EBIT before special items fell by 5.1% to €1,094 million (Q4 2012: 
€1,153 million).
EBITDA before special items declined in the fourth quarter of 2013 by 3.1% to €1,769 million (Q4 2012: 
€1,826 million). Earnings were held back by higher research and development expenses and negative 
currency effects. In addition, expenses for long-term stock-based compensation increased in light of the 
pleasing market performance of Bayer stock. HealthCare registered a 1.6% decline in EBITDA before 
special items to €1,337 million (Q4 2012: €1,359 million), while CropScience posted an 8.1% increase to 
€319 million (Q4 2012: €295 million). EBITDA before special items at MaterialScience amounted to 
€248 million (Q4 2012: €264 million), down 6.1% against the prior-year quarter. 
The financial result improved in the fourth quarter of 2013 to minus €84 million (Q4 2012: minus 
€169 million), primarily due to gains from the sale of the shares in Onyx Pharmaceuticals Inc., United 
States. Income before income taxes amounted to €571 million (Q4 2012: €560 million). After taxes and 
non-controlling interest, net income came in at €455 million (Q4 2012: €366 million). Earnings per share 
improved to €0.55 (Q4 2012: €0.45). Core earnings per share rose to €1.10 (Q4 2012: €1.01), calculated 
as explained in Chapter 16.3 “Core Earnings Per Share.”
Gross cash flow of the Group advanced by 34.7% to €978 million (Q4 2012: €726 million) and net cash 
flow by 74.4% to €1,580 million (Q4 2012: €906 million). The sharp increase in net cash flow was partly 
due to lower tax payments. Net financial debt declined by €1.0 billion in the fourth quarter of 2013 to 
€6.7 billion (September 30, 2013: €7.7 billion), largely thanks to cash inflows from operating activities. 
The net defined benefit liability for post-employment benefits declined by €0.5 billion against September 
30, 2013, to €7.3 billion, mainly due to a rise in long-term capital market interest rates.	
See Chapter 16.3
Key Data by Subgroup and Segment
[Table 3.14.2]
Sales
EBIT
EBITDA before special items *
4th Quarter 
2012
4th Quarter 
2013
4th Quarter 
2012
4th Quarter 
2013
4th Quarter 
2012
4th Quarter 
2013
€ million
€ million
€ million
€ million
€ million
€ million
HealthCare
4,921
4,939
558
631
1,359
1,337
Pharmaceuticals
2,866
2,975
165
321
835
822
Consumer Health
2,055
1,964
393
310
524
515
CropScience
1,856
1,951
247
163
295
319
MaterialScience
2,760
2,691
94
70
264
248
Reconciliation
323
307
(170)
(209)
(92)
(135)
Group
9,860
9,888
729
655
1,826
1,769
2012 figures restated
*	For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”
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156
PHOTO // The picture above, taken with a scanning electron microscope,  
shows a blood clot – magnified about 7,500 times.
15.1 HealthCare
15.
	Business Development by Subgroup, Segment and Region
15.1 HealthCare
156
15. 	Business Development by Subgroup,
Segment and Region
Key Data – HealthCare
[Table 3.15.1]
4th Quarter 
2012
4th Quarter 
2013
Change
Full Year
2012
Full Year
2013
Change
€ million
€ million
%
Fx (& p) adj. 
%
€ million
€ million
%
Fx (& p) adj. 
%
Sales
4,921
4,939
+ 0.4
+ 7.2
18,604
18,924
+ 1.7
+ 6.8
Change in sales
Volume
+ 5.3%
+ 4.7%
+ 3.7%
+ 5.9%
Price
– 0.2%
+ 2.5%
+ 0.5%
+ 0.9%
Currency
+ 2.4%
– 7.7%
+ 4.5%
– 5.7%
Portfolio
– 0.4%
+ 0.9%
– 0.3%
+ 0.6%
Sales by segment
Pharmaceuticals
2,866
2,975
+ 3.8
+ 11.5
10,798
11,188
+ 3.6
+ 9.4
Consumer Health
2,055
1,964
– 4.4
+ 1.0
7,806
7,736
– 0.9
+ 3.2
Sales by region
Europe
1,731
1,817
+ 5.0
+ 6.5
6,483
6,853
+ 5.7
+ 6.8
North America
1,281
1,286
+ 0.4
+ 5.5
4,961
5,024
+ 1.3
+ 4.7
Asia / Pacific
1,104
1,080
– 2.2
+ 12.5
4,196
4,188
– 0.2
+ 11.1
Latin America / Africa / Middle East
805
756
– 6.1
+ 9.8
2,964
2,859
– 3.5
+ 8.0
EBIT
558
631
+ 13.1
2,205
3,260
+ 47.8
Special items
(460)
(354)
(1,582)
(713)
EBIT before special items *
1,018
985
– 3.2
3,787
3,973
+ 4.9
EBITDA*
895
1,069
+ 19.4
3,866
4,858
+ 25.7
Special items
(464)
(268)
(1,253)
(476)
EBITDA before special items *
1,359
1,337
– 1.6
5,119
5,334
+ 4.2
EBITDA margin before special items *
27.6%
27.1%
27.5%
28.2%
Gross cash flow **
595
840
+ 41.2
2,659
3,573
+ 34.4
Net cash flow **
1,063
959
– 9.8
3,546
2,980
– 16.0
2012 figures restated
Fx (& p) adj. = currency- (and portfolio-)adjusted (Fx & p adj.: Sales and Sales by segment; Fx adj.: Sales by region)
*		 For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”
**	For definition see Chapter 16.5 “Liquidity and Capital Expenditures of the Bayer Group.”
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Bayer Annual Report 2013
15. Business Development by Subgroup, Segment and Region
15.1 HealthCare
Sales of the HealthCare subgroup rose by 6.8% (Fx & portfolio adj.) in 2013, to €18,924 million (report-
ed: +1.7%). This encouraging growth was driven by our recently launched pharmaceutical products.  
EBIT of the HealthCare subgroup advanced by a substantial 47.8% in 2013 to €3,260 million, mainly 
because net special charges were much lower at €713 million (2012: €1,582 million). EBIT before 
special items improved by 4.9% to €3,973 million. EBITDA before special items rose by 4.2% to 
€5,334 million. This was attributable to the gratifying business development in Pharmaceuticals, while 
earnings in Consumer Health posted a slight decline. Earnings at HealthCare were held back by 
negative currency effects of about €290 million. 
The integration of Conceptus, Inc., United States, and Steigerwald Arzneimittelwerk GmbH, Darmstadt, 
Germany, both acquired in 2013, proceeded on schedule.
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
€ million
€ million
400
200
0
800
600
1,000
1,400
1,200
0
400
200
600
1,000
800
2012 figures restated
2012 figures restated
HealthCare 
Quarterly EBIT
[Graphic 3.15.2]
HealthCare
Quarterly EBITDA Before Special Items
[Graphic 3.15.3]
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
741
922
234
729
672
978
558
631
1,181
1,277
1,248
1,328
1,331
1,392
1,359
1,337
Q1
Q4
Q2
Q3
€ million
0
500
1,000
1,500
2,000
2,500
3,000
3,500
5,000
4,500
4,000
HealthCare Quarterly Sales
[Graphic 3.15.1]
2012
2013
2012
2013
2012
2013
2012
2013
4,341
4,443
4,921
4,939
4,625
4,800
4,717
4,742
2012 figures restated
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Bayer Annual Report 2013
15. Business Development by Subgroup, Segment and Region
15.1 HealthCare
Pharmaceuticals
Sales of the Pharmaceuticals segment registered dynamic growth in 2013, climbing by 9.4% (Fx & 
portfolio adj.) to €11,188 million. The increase was driven by our recently launched products Xarelto™, 
Eylea™, Stivarga™ and Xofigo™, which recorded combined sales of €1,520 million (2012: €368 million). 
Marketing of Adempas™ (active ingredient: riociguat), our new medicine to treat pulmonary hyperten-
sion, commenced in the fall following approvals in North America. Our Pharmaceuticals business posted 
currency-adjusted sales growth in all regions, and especially in Japan, the United States, Germany and China.
Best-Selling Pharmaceuticals Products
[Table 3.15.3]
4th Quarter 
2012
4th Quarter 
2013
Change
Full Year 
2012
 Full Year
2013
Change
€ million
€ million
 %
Fx adj.  
 %
€ million
€ million
 %
Fx adj.  
 %
Kogenate™ 
298
274
– 8.1
– 2.1
1,182
1,202
+ 1.7
+ 6.4
Betaferon™ / Betaseron™ 
329
259
– 21.3
– 17.6
1,216
1,038
– 14.6
– 11.6
Xarelto™ 
131
316
+ 141.2
+ 158.9
322
949
+ 194.7
+ 210.7
YAZ™ / Yasmin™ / Yasminelle™ 
270
219
– 18.9
– 11.4
1,045
853
– 18.4
– 12.5
Nexavar™ 
212
194
– 8.5
– 1.2
792
771
– 2.7
+ 3.3
Mirena™
135
195
+ 44.4
+ 51.6
677
719
+ 6.2
+ 10.0
Adalat™ 
169
157
– 7.1
+ 6.1
670
603
– 10.0
– 0.9
Aspirin™ Cardio 
129
120
– 7.0
+ 1.9
476
452
– 5.0
+ 0.6
Avalox™ / Avelox™ 
123
106
– 13.8
– 7.6
486
426
– 12.3
– 8.8
Glucobay™
99
112
+ 13.1
+ 19.3
408
423
+ 3.7
+ 6.6
Eylea™
14
126
.
.
14
333
.
.
Levitra™ 
87
69
– 20.7
– 15.2
307
290
– 5.5
– 1.2
Cipro™ / Ciprobay™ 
56
42
– 25.0
– 15.4
229
197
– 14.0
– 7.8
Stivarga™
31
59
+ 90.3
100.2
32
197
.
.
Zetia™
57
45
– 21.1
+ 3.9
207
172
– 16.9
+ 5.4
Total
2,140
2,293
+ 7.1
+ 15.9
8,063
8,625
+ 7.0
+ 13.4
Proportion of Pharmaceuticals sales
75%
77%
75%
77%
Fx adj. = currency-adjusted
Key Data – Pharmaceuticals
[Table 3.15.2]
4th Quarter 
2012
4th Quarter 
2013
Change
Full Year 
2012
Full Year 
2013
Change
€ million
€ million
 %
Fx (& p) adj. 
%
€ million
€ million
%
Fx (& p) adj. 
%
Sales
2,866
2,975
+ 3.8
+ 11.5
10,798
11,188
+ 3.6
+ 9.4
Sales by region
Europe
988
1,049
+ 6.2
+ 7.5
3,677
3,918
+ 6.6
+ 7.5
North America
601
663
+ 10.3
+ 15.6
2,370
2,540
+ 7.2
+ 10.6
Asia / Pacific
775
783
+ 1.0
+ 16.6
2,939
3,016
+ 2.6
+ 14.9
Latin America / Africa / Middle East
502
480
– 4.4
+ 12.4
1,812
1,714
– 5.4
+ 6.8
EBIT
165
321
+ 94.5
1,104
2,031
+ 84.0
Special items
(437)
(259)
(1,223)
(521)
EBIT before special items *
602
580
– 3.7
2,327
2,552
+ 9.7
EBITDA*
392
618
+ 57.7
2,022
3,124
+ 54.5
Special items
(443)
(204)
(1,210)
(366)
EBITDA before special items *
835
822
– 1.6
3,232
3,490
+ 8.0
EBITDA margin before special items *
29.1%
27.6%
29.9%
31.2%
Gross cash flow **
228
510
  + 123.7
1,319
2,293
+ 73.8
Net cash flow **
545
625
+ 14.7
2,262
1,853
– 18.1
2012 figures restated
Fx (& p) adj. = currency- (and portfolio-)adjusted (Fx & p adj.: Sales; Fx adj.: Sales by region)
*		 For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”
**	For definition see Chapter 16.5 “Liquidity and Capital Expenditures of the Bayer Group.”
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15. Business Development by Subgroup, Segment and Region
15.1 HealthCare
Xarelto™ became the world leader among the novel oral anticoagulants in terms of sales in 2013 follow-
ing considerable sales gains, especially in Germany, Japan and France.* Business with Xarelto™ also de-
veloped very positively in the United States, where it is marketed by a subsidiary of Johnson & Johnson. 
Sales of the eye medicine Eylea™ rose substantially, particularly in Japan, Australia and Germany. We 
successfully introduced our cancer drug Stivarga™ in additional countries, and recorded the first sales of 
the cancer drug Xofigo™ (2013 sales: €41 million).
Sales of our blood-clotting medicine Kogenate™ rose thanks to higher volumes. The cancer drug 
Nexavar™ posted currency-adjusted gains, mainly as a result of price increases in the United States. 
Sales of our hormone-releasing intrauterine device Mirena™ also increased, particularly in light of ad-
justments to provisions for rebates in the United States and higher volumes in other countries. The oral 
diabetes treatment Glucobay™ benefited from continuing growth in demand in the Emerging Markets.
Sales of the multiple sclerosis drug Betaferon™ / Betaseron™ receded as expected, particularly in the 
United States due to increased competition there. Business with our YAZ™ / Yasmin™ / Yasminelle™ line of 
oral contraceptives was hampered mainly by generic competition in Western Europe and the United 
States. Business with the antibiotic Avalox™ / Avelox™ declined, mainly as a result of lower demand in 
the United States. Our antibiotic Cipro™ / Ciprobay™ registered lower sales, particularly in the United 
Kingdom, where we had benefited from a government contract in the previous year.
EBIT of the Pharmaceuticals segment rose by a substantial 84.0% in 2013, to €2,031 million. The main 
reason for this – apart from the increase in operational earnings – was the decrease in special charges to 
€521 million (2012: €1,223 million). The special charges comprised €269 million in charges related to le-
gal claims, including €155 million related to claims concerning Yasmin™ / YAZ™ in the United States; 
€140 million in impairment losses recognized on research projects; €66 million in restructuring charges; 
and €46 million in expenses for the integration of our Conceptus business. EBIT before special items rose 
by 9.7% to €2,552 million. We raised EBITDA before special items by 8.0% to €3,490 million. This earn-
ings growth was mainly attributable to the good business development and especially to sharp sales in-
creases for our recently launched products, while earnings were diminished by higher selling and R&D 
expenses and roughly €140 million in negative currency effects.
* as of November 2013; source: internal calculations based on IMS Health MIDAS database – monthly sales November 2013
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Combined Management Report
Bayer Annual Report 2013
15. Business Development by Subgroup, Segment and Region
15.1 HealthCare
Consumer Health
Sales of the Consumer Health segment advanced by 3.2% (Fx & portfolio adj.) in 2013 to €7,736 mil-
lion. The increase was attributable to the Consumer Care and Animal Health divisions and to gratifying 
overall development in the Emerging Markets, particularly Russia and Brazil. 
Best-Selling Consumer Health Products
[Table 3.15.5]
4th Quarter 
2012
4th Quarter 
2013
Change
Full Year 
 2012
Full Year 
 2013
Change
€ million
€ million
%
Fx adj. 
 %
€ million
€ million
 %
Fx adj.  
%
Contour™ (Medical Care)
193
179
– 7.3
– 4.1
722
722
0.0
+ 2.2
Advantage™ product line (Animal Health)
92
98
+ 6.5
+ 12.8
495
487
– 1.6
+ 2.0
Aspirin™(Consumer Care)
138
120
– 13.0
– 8.1
494
464
– 6.1
– 2.5
Ultravist™ (Medical Care)
82
80
– 2.4
0.0
322
322
0.0
+ 2.3
Aleve™ (Consumer Care)
87
82
– 5.7
– 1.0
323
321
– 0.6
+ 3.3
Bepanthen™/Bepanthol™ (Consumer Care)
67
77
+ 14.9
+ 23.6
269
310
+ 15.2
+ 20.3
Canesten™ (Consumer Care)
65
61
– 6.2
+ 1.5
250
257
+ 2.8
+ 8.4
Gadovist™ / Gadavist™ (Medical Care)
60
55
– 8.3
– 4.8
209
205
– 1.9
– 0.2
One A Day™ (Consumer Care)
53
48
– 9.4
– 3.4
196
176
– 10.2
– 7.0
Supradyn™ (Consumer Care)
42
43
+ 2.4
+ 10.4
146
158
+ 8.2
+ 14.3
Total
879
843
– 4.1
+ 0.9
3,426
3,422
– 0.1
+ 3.3
Proportion of Consumer Health sales
43%
43%
44%
44%
Fx adj.= currency-adjusted
Total sales of Aspirin™ (including Aspirin™ Complex), also including Aspirin™ Cardio, which is reflected in sales of the Pharmaceuticals segment, decreased  
by 5.6% (Fx adj. – 1.0%) in 2013 to €916 million (2012: €970 million). Total sales of this product in the fourth quarter of 2013 declined by 10.1% (Fx adj. – 3.3%) to  
€240 million (Q4 2012: €267 million).
Key Data – Consumer Health
[Table 3.15.4]
4th Quarter 
2012
4th Quarter 
2013
Change
 Full Year 
2012
Full Year 
2013
Change
€ million
€ million
%
Fx (& p) adj. 
%
€ million
€ million
%
Fx (& p) adj. 
%
Sales
2,055
1,964
– 4.4
+ 1.0
7,806
7,736
– 0.9
+ 3.2
Consumer Care
1,055
1,015
– 3.8
+ 0.9
3,853
3,904
+ 1.3
+ 5.1
Medical Care
716
653
– 8.8
– 3.1
2,650
2,526
– 4.7
– 0.3
Animal Health
284
296
+ 4.2
+ 11.6
1,303
1,306
+ 0.2
+ 4.5
Sales by region
Europe
743
768
+ 3.4
+ 5.2
2,806
2,935
+ 4.6
+ 6.0
North America
680
623
– 8.4
– 3.5
2,591
2,484
– 4.1
– 0.7
Asia / Pacific
329
297
– 9.7
+ 2.7
1,257
1,172
– 6.8
+ 2.1
Latin America / Africa / Middle East
303
276
– 8.9
+ 5.6
1,152
1,145
– 0.6
+ 10.0
EBIT
393
310
– 21.1
1,101
1,229
+ 11.6
Special items
(23)
(95)
(359)
(192)
EBIT before special items *
416
405
– 2.6
1,460
1,421
– 2.7
EBITDA*
503
451
– 10.3
1,844
1,734
– 6.0
Special items
(21)
(64)
(43)
(110)
EBITDA before special items *
524
515
– 1.7
1,887
1,844
– 2.3
EBITDA margin before special items *
25.5%
26.2%
24.2%
23.8%
Gross cash flow **
367
330
– 10.1
1,340
1,280
– 4.5
Net cash flow **
518
334
– 35.5
1,284
1,127
– 12.2
2012 figures restated
Fx (& p) adj. = currency- (and portfolio-)adjusted (Fx & p adj.: Sales; Fx adj.: Sales by region)
*		 For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”
**	For definition see Chapter 16.5 “Liquidity and Capital Expenditures of the Bayer Group.”
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15. Business Development by Subgroup, Segment and Region
15.1 HealthCare
Sales in the Consumer Care Division rose by 5.1% (Fx & portfolio adj.) to €3,904 million. Business  
with our analgesic Aleve™ expanded on a currency-adjusted basis, mainly due to increased marketing 
activities in Brazil and price increases in the United States. The skincare product Bepanthen™ /  
Bepanthol™ registered strong growth in the Emerging Markets, especially Brazil and Russia. The anti-
fungal Canesten™ also developed positively. Sales of the dietary supplement Supradyn™ advanced by a 
double-digit percentage on a currency-adjusted basis, partly as a result of strong business development 
in Russia. Business with our analgesic Aspirin™ and the dietary supplement One A Day™ declined, pri-
marily due to lower demand in the United States.
Sales in the Medical Care Division were level year on year (Fx & portfolio adj.) at €2,526 million 
(–0.3%). Business in the United States was hampered particularly by reimbursement pressure and lower 
prices, while sales developed positively elsewhere. Our Diabetes Care business performed at around  
the previous year’s level in a shrinking overall market. However, we achieved slight currency-adjusted 
sales gains for the Contour™ line of blood glucose meters, mainly thanks to the launch of Contour™ 
Next. Sales of contrast agents and medical devices in the Radiology & Interventional business were at 
the ­prior-year level on a currency-adjusted basis. 
Sales of the Animal Health Division rose by 4.5% (Fx & portfolio adj.) to €1,306 million. We slightly 
raised sales of the Advantage™ line of flea, tick and worm control products due to gratifying develop-
ment in Europe. We achieved robust sales growth for the Seresto™ flea and tick collar (2013 sales: 
€31 million), which was also launched in the United States in 2013.
EBIT of the Consumer Health segment improved by 11.6% in 2013 to €1,229 million. This increase was 
attributable to the lower net special charges of €192 million (2012: €359 million). The special charges 
comprised €138 million in restructuring charges, a €44 million impairment loss recognized on an intan-
gible asset and €30 million in expenses for the integration of acquired businesses. EBIT before special 
items amounted to €1,421 million (–2.7%). EBITDA before special items fell by 2.3% to €1,844 million. 
Positive earnings contributions from sales growth in the Consumer Care and Animal Health divisions 
were more than offset by higher selling expenses in the Emerging Markets and roughly €150 million in 
negative currency effects.  
» TABLE OF CONTENTS COMBINED MANAGEMENT REPORT

15. Business Development by Subgroup, Segment and Region
15.2 CropScience
Bayer Annual Report 2013
Combined Management Report
162
15.2 CropScience
Photo // The scanning electron micrograph above shows part of the  
surface of a soybean plant leaf – magnified about 4,500 times.
Key Data – CropScience
[Table 3.15.6]
4th Quarter 
2012
4th Quarter 
2013
Change
Full Year 
2012
Full Year 
2013
Change
€ million
€ million
%
Fx (& p) adj. 
%
€ million
€ million
%
Fx (& p) adj. 
%
Sales
1,856
1,951
+ 5.1
+ 12.8
8,383
8,819
+ 5.2
+ 9.4
Change in sales
Volume
+ 9.0%
+ 11.8%
+ 11.6%
+ 6.8%
Price
+ 0.1%
+ 1.0%
+ 0.8%
+ 2.6%
Currency
+ 1.9%
– 8.2%
+ 3.8%
– 4.7%
Portfolio
– 0.3%
+ 0.5%
– 0.7%
+ 0.5%
Sales by operating segment
Crop Protection / Seeds
1,682
1,797
+ 6.8
+ 14.6
7,703
8,168
+ 6.0
+ 10.1
Environmental Science
174
154
– 11.5
– 4.6
680
651
– 4.3
+ 1.3
Sales by region
Europe
393
411
+ 4.6
+ 5.3
2,706
2,799
+ 3.4
+ 4.3
North America
287
301
+ 4.9
+ 10.5
2,154
2,211
+ 2.6
+ 5.0
Asia / Pacific
363
329
– 9.4
+ 4.4
1,386
1,358
– 2.0
+ 7.9
Latin America / Africa / Middle East
813
910
+ 11.9
+ 22.3
2,137
2,451
+ 14.7
+ 23.6
EBIT
247
163
– 34.0
1,556
1,729
+ 11.1
Special items
79
(40)
13
(72)
EBIT before special items *
168
203
+ 20.8
1,543
1,801
+ 16.7
EBITDA*
374
282
– 24.6
2,050
2,184
+ 6.5
Special items
79
(37)
25
(64)
EBITDA before special items *
295
319
+ 8.1
2,025
2,248
+ 11.0
EBITDA margin before special items *
15.9%
16.4%
24.2%
25.5%
Gross cash flow **
132
228
+ 72.7
1,332
1,590
+ 19.4
Net cash flow **
105
29
– 72.4
899
682
– 24.1
2012 figures restated
Fx (& p) adj. = currency- (and portfolio-)adjusted (Fx & p adj.: Sales and Sales by operating segment; Fx adj.: Sales by region)
*		 For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”
**	For definition see Chapter 16.5 “Liquidity and Capital Expenditures of the Bayer Group.”
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15. Business Development by Subgroup, Segment and Region
15.2 CropScience
CropScience raised sales in 2013 by 9.4% (Fx & portfolio adj.) to €8,819 million (reported: +5.2%). 
Thus we succeeded in substantially growing the business despite the late start to the season in the 
northern hemisphere. Sales in Crop Protection / Seeds developed positively, due to the attractive market 
environment and especially to an increase in sales of the new Crop Protection products we have 
launched since 2006 to more than €1,510 million (reported: approx. +30%). Sales in the Seeds unit rose 
slightly overall despite reduced canola and cotton acreages in North America. The Environmental Sci-
ence unit also registered a small increase in sales. 
Sales in Crop Protection / Seeds climbed by 10.1% (Fx & portfolio adj.), to €8,168 million. All of the 
Crop Protection business units developed positively. Fungicides and Insecticides achieved the largest in-
creases in percentage terms, with Herbicides and SeedGrowth posting encouraging gains. Sales of vege-
table seeds also moved ahead.
Sales in Environmental Science edged upward by 1.3% (Fx & portfolio adj.) to €651 million. The ­positive 
development in products for professional users more than offset the decline in the consumer business. 
CropScience achieved currency-adjusted sales increases in all regions.
In Europe, sales rose by 4.3% (Fx adj.) to €2,799 million, mainly in light of the positive development  
at Crop Protection / Seeds. Fungicides posted double-digit growth. Both Insecticides and the vegetable 
seed business developed well, while sales of Herbicides showed only a small increase. Business in 
SeedGrowth receded overall, partly as a consequence of use restrictions for products containing  
­neonicotinoids. Sales of Environmental Science receded due to the downturn in the consumer business. 
Sales by Business Units
[Table 3.15.7]
 
4th Quarter 
2012
4th Quarter 
2013
Change
Full Year 
2012
Full Year 
2013
Change
 
€ million
 
€ million
 
%
Fx & p adj. 
%
 
€ million
 
€ million
 
%
Fx & p adj. 
%
Herbicides
451
469
+ 4.0
+ 11.5
2,356
2,456
+ 4.2
+ 8.3
Fungicides
445
445
0.0
+ 6.7
1,974
2,195
+ 11.2
+ 14.9
Insecticides
424
465
+ 9.7
+ 20.1
1,514
1,622
+ 7.1
+ 14.1
SeedGrowth
220
247
+ 12.3
+ 18.6
897
921
+ 2.7
+ 7.1
Crop Protection
1,540
1,626
+ 5.6
+ 13.6
6,741
7,194
+ 6.7
+ 11.4
Seeds
142
171
+ 20.4
+ 25.2
962
974
+ 1.2
+ 1.2
Crop Protection / Seeds
1,682
1,797
+ 6.8
+ 14.6
7,703
8,168
+ 6.0
+ 10.1
Environmental Science 
174
154
– 11.5
– 4.6
680
651
– 4.3
+ 1.3
2012 figures restated 
Fx & p adj. = currency- and portfolio-adjusted
Q1
Q4
Q2
Q3
CropScience Quarterly Sales
[Graphic 3.15.4]
€ million
0
500
1,000
1,500
2,000
3,000
2,500
2012
2013
2012
2013
2012
2013
2012
2013
2,610
2,764
2,276
2,392
1,641
1,712
1,856
1,951
2012 figures restated 
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15. Business Development by Subgroup, Segment and Region
15.2 CropScience
Sales in North America advanced by 5.0% (Fx adj.) to €2,211 million. This was primarily attributable to 
the robust business development in SeedGrowth with products for use in corn and soybeans and to posi-
tive development in Herbicides. Double-digit growth was also recorded in Fungicides, while sales in the 
Insecticides unit declined due to lower infestation pressure. Business in Seeds was down against a 
strong prior year. The positive development of our vegetable seeds business did not fully offset the lower 
sales of canola and cotton seed, which were due to reduced acreages. Business expanded at Environ-
mental Science.
Sales in the Asia / Pacific region advanced by 7.9% (Fx adj.) to €1,358 million, thanks partly to increased 
sales in Herbicides. Business in Insecticides and Fungicides also expanded. Our Seeds business devel-
oped successfully, too, with double-digit growth for vegetable and rice seeds. The region as a whole 
benefited especially from a significant business improvement in India. Sales in Environmental Science 
were at the previous year’s level.
Growth was strongest in Latin America / Africa / Middle East, where sales climbed by a substantial 
23.6% (Fx adj.) to €2,451 million. We achieved double-digit growth in Crop Protection / Seeds in a very 
positive market environment. Sales of the Insecticides unit posted particularly good gains, driven by our 
products for use in soybeans and corn. In Fungicides, products for use in soybeans were especially suc-
cessful. The SeedGrowth and Herbicides businesses also developed very well. Sales in Seeds advanced 
in addition, particularly for vegetable and cotton seed. The soybean seed business also developed very 
well, partly due to acquisitions made in 2013. Brazil and Argentina accounted for a major part of the 
­region‘s positive sales development. Sales in Environmental Science also moved ahead. 
EBIT of CropScience rose in 2013 by a substantial 11.1%, from €1,556 million in the prior year to 
€1,729 million after special charges of €72 million (2012: special gain of €13 million). The special 
charges mainly comprised restructuring expenses in Crop Protection. EBIT before special items ad-
vanced by 16.7% to €1,801 million. EBITDA before special items moved ahead by 11.0% to €2,248 mil-
lion. Earnings growth was mainly the result of significant volume increases and higher selling prices, 
with positive currency effects of some €20 million also contributing to the increase.
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
CropScience 
Quarterly EBIT
 
[Graphic 3.15.5]
CropScience 
Quarterly EBITDA Before Special Items
 
[Graphic 3.15.6]
€ million
€ million
400
0
600
200
1,000
800
400
200
0
600
1,000
800
2012 figures restated
2012 figures restated
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
984
1,081
549
624
197
224
295
319
854
964
382 
496
73
106
247
 163
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15. Business Development by Subgroup, Segment and Region
15.3 MaterialScience
Bayer Annual Report 2013
15.3 MaterialScience
PHOTO // The scanning electron micrograph above shows a cross-section  
through a flexible polyurethane foam – magnified about 85 times.
Key Data – MaterialScience
[Table 3.15.8]
4th Quarter 
2012
4th Quarter 
2013
Change
Full Year 
2012
Full Year 
2013
Change
€ million
€ million
%
Fx (& p) adj. 
%
€ million
€ million
%
Fx (& p) adj.  
%
Sales
2,760
2,691
– 2.5
+ 1.6
11,491
11,238
– 2.2
+ 0.4
Change in sales
Volume
+ 2.6%
+ 4.1%
+ 2.4%
+ 0.6%
Price
+ 2.2%
– 2.5%
+ 0.6%
– 0.2%
Currency
+ 2.2%
– 3.6%
+ 3.9%
– 2.4%
Portfolio
– 0.6%
– 0.5%
– 0.7%
– 0.2%
Sales by business unit
Polyurethanes
1,473
1,472
– 0.1
+ 4.0
5,987
6,054
+ 1.1
+ 3.9
Polycarbonates
668
640
– 4.2
– 0.9
2,819
2,640
– 6.3
– 4.5
Coatings, Adhesives, Specialties
451
417
– 7.5
– 1.1
1,972
1,863
– 5.5
– 1.9
Industrial Operations
168
162
– 3.6
– 2.4
713
681
– 4.5
– 3.6
Sales by region
Europe
1,027
1,040
+ 1.3
+ 1.5
4,403
4,363
– 0.9
– 0.8
North America
579
561
– 3.1
+ 1.6
2,441
2,424
– 0.7
+ 2.5
Asia / Pacific
771
762
– 1.2
+ 5.2
3,149
3,048
– 3.2
+ 0.9
Latin America / Africa / Middle East
383
328
– 14.4
– 8.9
1,498
1,403
– 6.3
– 2.3
EBIT
94
70
– 25.5
581
435
– 25.1
Special items
(1)
(18)
(32)
6
EBIT before special items *
95
88
– 7.4
613
429
– 30.0
EBITDA*
265
244
– 7.9
1,236
1,101
– 10.9
Special items
1
(4)
(27)
29
EBITDA before special items *
264
248
– 6.1
1,263
1,072
– 15.1
EBITDA margin before special items *
9.6%
9.2 %
11.0%
9.5 %
Gross cash flow**
216
217
+ 0.5
952
887
– 6.8
Net cash flow **
250
545
.
735
977
+ 32.9
2012 figures restated
Fx (& p) adj. = currency- (and portfolio-)adjusted (Fx & p adj.: Sales and Sales by business unit; Fx adj.: Sales by region)
*		 For definition see Chapter 16.2 “Calculation of EBIT(DA) Before Special Items.”
**	For definition see Chapter 16.5 “Liquidity and Capital Expenditures of the Bayer Group.”
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15. Business Development by Subgroup, Segment and Region
15.3 MaterialScience
The MaterialScience subgroup posted sales of €11,238 million in 2013, matching the prior-year  
level on a currency- and portfolio-adjusted basis (+0.4%; reported: –2.2%). There was a slight overall 
improvement in volumes, with increases in Asia and North America offsetting volume declines in  
Latin America / Africa / Middle East and Europe. However, selling prices overall were slightly below the 
­prior-year level. Higher prices in North and Latin America roughly compensated for decreases in 
Asia / Pacific and Europe. 
Sales in the Polyurethanes business unit rose by 3.9% (Fx & portfolio adj.) to €6,054 million. Volume 
gains in Asia / Pacific and North America contributed to this increase. Selling prices as a whole were at 
the prior-year level. Prices for diphenylmethane diisocyanate (MDI) increased, with volumes unchanged 
from the previous year. Volumes of toluene diisocyanate (TDI) improved significantly, but prices receded. 
Volumes for polyether (PET) moved somewhat lower, with selling prices at the level of the prior year.
Sales of the Polycarbonates business unit receded by 4.5% (Fx & portfolio adj.) to €2,640 million. This 
decline was mainly due to a drop in volumes in all regions on account of weaker demand. A further fac-
tor was the lower level of selling prices in Asia / Pacific caused by market overcapacities.
Q1
Q4
Q2
Q3
2012
2013
2012
2013
2012
2013
2012
2013
MaterialScience Quarterly Sales
[Graphic 3.15.7]
€ million
0
500
1,000
1,500
2,000
2,500
3,000
2,787
2,775
2,954
2,875
2,990
2,897
2,760
2,691
2012 figures restated
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15. Business Development by Subgroup, Segment and Region
15.3 MaterialScience
Sales in the Coatings, Adhesives, Specialties business unit fell by 1.9% (Fx & portfolio adj.) to 
€1,863 million, largely as a result of lower selling prices in Asia / Pacific. Volumes as a whole were flat 
with the prior year.
Sales of Industrial Operations moved back by 3.6% (Fx & portfolio adj.) to €681 million due to lower 
overall price levels. Volumes, however, were unchanged.
EBIT of MaterialScience receded by 25.1% in 2013 to €435 million. This included a net special gain of 
€6 million (2012: special charges of €32 million), the €42 million gain from the disposal of parts of our 
polyester resins business being largely offset by restructuring expenses. EBIT before special items fell by 
a substantial 30.0% to €429 million. EBITDA before special items dropped by 15.1% to €1,072 million. 
This decline was mainly due to a sharp rise in raw material costs, especially in the first half of the year. 
Earnings were also diminished by somewhat lower selling prices. These effects were partly offset by a 
slight rise in volumes, savings from our efficiency improvement measures and positive currency effects 
of about €10 million. Successful working capital management resulted in a significant improvement in 
cash flow, to €977 million (2012: €735 million; +32.9%).
MaterialScience 
Quarterly EBIT
 
[Graphic 3.15.8]
MaterialScience 
Quarterly EBITDA Before Special Items
 
[Graphic 3.15.9]
Q2
Q3
Q4
2012
2013
2012
2013
2012
2013
2012
2013
Q1
279
204
383
274
337 
346
264
248
€ million
€ million
0
100
300
200
400
500
Q2
Q3
Q4
2012
2013
2012
2013
2012
2013
2012
2013
Q1
121
42
201
143
165
180
94
70
0
50
150
100
200
250
300
2012 figures restated
2012 figures restated
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Bayer Annual Report 2013
15. Business Development by Subgroup, Segment and Region
15.5 Business Development in the Emerging Markets
15. Business Development by Subgroup, Segment and Region
15.4 Business Development by Region
CropScience
CropScience improved sales in the Emerging Markets by 18.2% (Fx adj.) in 2013, to €3,959 million 
(2012: €3,570 million). Business developed particularly well in Latin America, especially in Brazil and 
Argentina. We posted encouraging sales gains in Asia and Eastern Europe. Sales in Africa / Middle 
East also increased. The Emerging Markets’ share of total CropScience sales in 2013 was 44.9% 
(2012: 42.6%). 
 Online annex: 3-15.5-2
Growing the business in the Emerging Markets, and especially in developing countries, also involves  
finding solutions to specific local challenges. 
CropScience aims to contribute to increased agricultural productivity in Africa and intends to  
expand its presence there. The subgroup’s range of products and services is tailored to the needs  
of African farmers and includes integrated crop solutions based on improved seed varieties and  
modern crop protection technologies. We also run product safety programs and provide training in 
good agricultural practice. We regard public-private partnerships as the key to rural development  
and affluence in Africa and therefore work together with local governments, farmers’ associations, 
cooperatives, non-governmental organizations, agricultural input suppliers, banks and insurers. 
CropScience also aims to help raise living standards in rural areas of India by boosting value added 
and ensuring it is reinvested in the community. An example is the Model Village Project launched in 
2010. The aim of this project is to train farmers in sustainable cultivation methods and show them 
new ways of irrigating their land in order to improve productivity. Parallel measures are also being  
taken to improve general living conditions, such as the commissioning of a drinking water purifica-
tion plant and the launch of health promotion and children’s educational programs. The Bayer Prayas 
Rural Development Association coordinates the activities at the local level in the model villages in the 
state of Karnataka in southwest India.
MaterialScience
In the Emerging Markets, MaterialScience had sales of €4,761 million in 2013 (2012: €4,933 million), 
down 1.0% year on year (Fx. adj.). Sales fell considerably in Africa / Middle East, especially in Turkey. 
Sales in Asia were practically flat with the prior year, although business expanded in China. In Latin 
America, too, sales came in at the previous year‘s level. In Eastern Europe, however, we posted a slight 
increase. The Emerging Markets accounted for 42.4% (2012: 42.9%) of total sales at MaterialScience.
 Online annex: 3-15.5-3
In cooperation with external partners, MaterialScience is evolving and implementing technical  
solutions to help low-income people in developing countries and Emerging Markets gain improved 
access to high-quality, safe and easy-to-build yet affordable housing. These activities currently focus 
on Asia. The company is mainly contributing its expertise in the field of polyurethane rigid foam for 
the construction industry.
Sales by Region and Segment (by Market)                        
[Table 3.15.9]
Europe
North America
Asia / Pacific
Latin America / Africa / Middle East
Total
Full Year
2012
Full Year
2013
Full Year
2012
Full Year
2013
  
Full Year
2012
Full Year
2013
Full Year
2012
Full Year
2013
Full Year
2012
Full Year
2013
  
 
€ million
 
€ million
 
% yoy
Fx adj.
% yoy
 
€ million
 
€ million
 
% yoy
Fx adj.
% yoy
 
 
€ million
 
€ million
 
% yoy
Fx adj.
% yoy
 
€ million
 
€ million
 
% yoy
Fx adj.
% yoy
 
€ million
 
€ million
 
% yoy
Fx adj.
% yoy
HealthCare
6,483
6,853
+ 5.7
+ 6.8
4,961
5,024
+ 1.3
+ 4.7
 
4,196
4,188
– 0.2
+ 11.1
2,964
2,859
– 3.5
+ 8.0
18,604
18,924
+ 1.7
+ 7.4
Pharmaceuticals
3,677
3,918
+ 6.6
+ 7.5
2,370
2,540
+ 7.2
+ 10.6
 
2,939
3,016
+ 2.6
+ 14.9
1,812
1,714
– 5.4
+ 6.8
10,798
11,188
+ 3.6
+ 10.1
Consumer Health
2,806
2,935
+ 4.6
+ 6.0
2,591
2,484
– 4.1
– 0.7
 
1,257
1,172
– 6.8
+ 2.1
1,152
1,145
– 0.6
+ 10.0
7,806
7,736
– 0.9
+ 3.7
CropScience
2,706
2,799
+ 3.4
+ 4.3
2,154
2,211
+ 2.6
+ 5.0
 
1,386
1,358
– 2.0
+ 7.9
2,137
2,451
+ 14.7
+ 23.6
8,383
8,819
+ 5.2
+ 9.9
MaterialScience
4,403
4,363
– 0.9
– 0.8
2,441
2,424
– 0.7
+ 2.5
 
3,149
3,048
– 3.2
+ 0.9
1,498
1,403
– 6.3
– 2.3
11,491
11,238
– 2.2
+ 0.2
Group (incl. reconciliation)
14,722
15,086
+ 2.5
+ 3.1
9,576
9,680
+ 1.1
+ 4.2
 
8,759
8,623
– 1.6
+ 6.9
6,684
6,768
+ 1.3
+ 10.2
39,741
40,157
+ 1.0
+ 5.4
2012 figures restated
yoy = year on year; Fx. adj. = currency-adjusted
15.4 Business Development by Region
15.5 Business Development in the Emerging Markets
The Emerging Markets again accounted for a disproportionately large share of sales growth in 2013.  
For reporting purposes we have defined the Emerging Markets as Asia (excluding Japan), Latin America, 
Eastern Europe, Africa and the Middle East. 
Sales in these markets rose in 2013 by 7.3% (Fx adj.) to €15,040 million (2012: €14,785 million), with 
pleasing gains in Latin America, Asia and Eastern Europe. The Emerging Markets accounted for 37.5% 
of sales (2012: 37.2%).
HealthCare
HealthCare raised sales in the Emerging Markets by 8.0% (Fx adj.) in 2013 to €6,236 million (2012: 
€6,169 million), with the Latin America region posting the highest currency-adjusted growth rate. Here, 
Argentina and Brazil saw the strongest currency-adjusted increases, especially in sales of our Consumer 
Care products. The largest increase in absolute terms occurred in China, mainly in light of the continued 
expansion of our distribution network. We also achieved gratifying sales growth in Russia, primarily in 
Consumer Care. The Emerging Markets accounted for 33.0% (2012: 33.2%) of total HealthCare sales.
 Online annex: 3-15.5-1
In Russia, HealthCare is supporting the ongoing reorganization of the country’s health system that 
forms part of the government’s “Pharma 2020” reform program. This program is designed to achieve 
a 10-year increase in life expectancy by 2020 by improving health care, establishing a govern-
ment-run health insurance system and modernizing the pharmaceutical industry. Bayer plans to  
provide assistance with educational and prevention programs.
38% (Fx adj. + 7%)
Emerging Markets
62% (Fx adj. + 4%)
Industrialized countries
Sales Development in 2013
[Graphic 3.15.10]
currency-adjusted changes in parentheses
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16. Earnings; Asset and Financial Position of the Bayer Group
16.1 Earnings Performance of the Bayer Group
16. Earnings; Asset and Financial Position  
of the Bayer Group
16.1 Earnings Performance of the Bayer Group
Sales of the Bayer Group rose to €40,157 million (+1.0%). The increase after adjusting for currency 
and portfolio effects was 5.1%.
The cost of goods sold increased by 1.5% to €19,347 million, mainly due to higher volumes and a rise in 
raw material costs at MaterialScience. The ratio of the cost of goods sold to total sales was 48.2% 
(2012: 48.0%). The selling expenses of €10,080 million (+1.0%) amounted to 25.1% of sales (2012: 
25.1%). Research and development (R&D) expenses rose in 2013 by 5.9% to €3,190 million, the increase 
being attributable to HealthCare and CropScience. The ratio of R&D expenses to sales was slightly higher 
at 7.9% (2012: 7.6%). General administration expenses, at €1,883 million, were level with the prior year 
(+0.9%). The ratio of general administration expenses to total sales thus remained unchanged at 
4.7%. The negative balance of other operating income and expenses was reduced considerably to minus 
€723 million (2012: minus €1,883 million), mainly because special charges for accounting measures re-
lated to legal claims were lower in 2013 (see also Chapter 16.2 “Calculation of EBIT(DA) Before Special 
Items”). 
EBIT climbed by 25.6% in 2013 to €4,934 million. 
Bayer Group Summary Income Statements
[Table 3.16.1]
 
2012
2013
Change
 
€ million
€ million
%
Net sales
39,741
40,157
+ 1.0
Cost of goods sold
19,070
19,347
+ 1.5
Selling expenses
9,981
10,080
+ 1.0
Research and development expenses
3,013
3,190
+ 5.9
General administration expenses
1,866
1,883
+ 0.9
Other operating income (+) and expenses (–)
(1,883)
(723)
+ 61.6
EBIT *
3,928
4,934
+ 25.6
Financial result
(752)
(727)
+ 3.3
Income before income taxes
3,176
4,207
+ 32.5
Income taxes
(723)
(1,021)
– 41.2
Income after income taxes
2,453
3,186
+ 29.9
of which attributable to non-controlling interest
50
(3)
–
of which attributable to Bayer AG stockholders (net income)
2,403
3,189
+ 32.7
2012 figures restated
*	EBIT = earnings before financial result and taxes
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16. Earnings; Asset and Financial Position of the Bayer Group
16.2 Calculation of EBIT(DA) Before Special Items
The financial result improved by 3.3% to minus €727 million. It included €355 million (2012: €252 mil-
lion) in net interest expense, €297 million (2012: €389 million) in interest cost for pension and other pro-
visions, a €120 million (2012: €69 million) net exchange loss and a €59 million net gain (2012: €23 mil-
lion net loss) from investments in affiliated companies. Income from investments in affiliated companies 
included a €77 million gain from the sale of Bayer’s interest in Onyx Pharmaceuticals Inc., United States. 
The net interest position was particularly affected by interest expense in connection with a court pro-
ceeding brought by former Schering stockholders. The decrease in pension-related interest cost resulted 
partly from the effect of lower interest rates on the interest cost for defined benefit plans, which is re-
ported net of the expected return on plan assets.
Tax expense in 2013 increased to €1,021 million as a result of earnings growth (2012: €723 million). 
­Income after income taxes came in at €3,186 million. Income attributable to non-controlling interest fell by 
€53 million to minus €3 million. The prior-year figure contained minority stockholders’ interest in dives-
titure gains. Bayer Group net income for 2013 was €3,189 million (2012: €2,403 million).
16.2 Calculation of EBIT(DA) Before Special Items
Key performance indicators for the Bayer Group are EBIT before special items and EBITDA before special 
items. These indicators are reported in order to allow a more accurate assessment of business opera-
tions. The special items – comprising effects that are non-recurring or do not regularly recur or attain 
similar magnitudes – are detailed in the following table. EBITDA, EBITDA before special items and EBIT 
­before special items are not defined in the International Financial Reporting Standards and should there-
fore be regarded only as supplementary information. EBITDA before special items is a meaningful indica-
tor of operating performance since it is not affected by depreciation, amortization, impairment losses, 
impairment loss reversals or special items. By reporting this indicator, the company aims to give readers 
a clear picture of the results of operations and ensure comparability of data over time. The EBITDA mar-
gin before special items, which is the ratio of EBITDA before special items to sales, serves as a relative 
­indicator for the internal and external comparison of operational earning power.
Depreciation, amortization and impairments decreased by 3.1% in 2013 to €2,896 million (2012: 
€2,988 million), comprising €1,572 million (2012: €1,659 million) in amortization and impairments of 
­intangible assets, impairment loss reversals of €13 million (2012: €21 million) and €1,337 million (2012: 
€1,350 million) in depreciation and impairments of property, plant and equipment. A total of €268 mil-
lion (2012: €347 million) in depreciation, amortization and impairments constituted special items. This 
amount comprised €259 million (2012: €315 million) in impairment losses and €22 million (2012: 
€48 million) in depreciation and amortization, less €13 million (2012: €16 million) in impairment loss re-
versals.
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16. Earnings; Asset and Financial Position of the Bayer Group
16.3 Core Earnings Per Share
16.3 Core Earnings Per Share
Earnings per share according to IFRS are affected by the purchase price allocation for acquisitions and 
other special factors. To enhance comparability, we also determine core net income after eliminating 
amortization and impairments / impairment loss reversals of intangible assets, impairments / impair-
ment loss reversals of property, plant and equipment, and special items in EBITDA including the related 
tax effects. 
From this core net income we calculate core earnings per share in the same way as earnings per 
share. Core earnings per share form the basis for our dividend policy. Core earnings per share in 2013 
rose by 5.8% to €5.61 (2012: €5.30). 
Special Items Reconciliation
[Table 3.16.2
EBIT * 
4th Quarter  
2012
EBIT *  
4th Quarter 
2013
EBIT *  
Full Year  
2012
EBIT *  
Full Year  
2013
EBITDA**  
 4th Quarter  
2012
EBITDA**  
4th Quarter  
2013
EBITDA**  
Full Year  
2012
EBITDA**  
Full Year  
2013
 
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Before special items
1,153
1,094
5,639
5,773
1,826
1,769
8,280
8,401
HealthCare
(460)
(354)
(1,582)
(713)
(464)
(268)
(1,253)
(476)
Impairment losses /  
impairment loss reversals
 
16
 
(55)
 
(289)
 
(171)
 
–
 
–
 
–
 
14
Restructuring
(59)
(109)
(182)
(197)
(47)
(78)
(142)
(145)
Litigations
(455)
(180)
(1,160)
(269)
(455)
(180)
(1,160)
(269)
Integration costs
–
(10)
–
(76)
–
(10)
–
(76)
Adjustments to post-employ- 
ment benefit entitlements
 
38
 
–
 
49
 
–
 
38
 
–
 
49
 
–
CropScience
79
(40)
13
(72)
79
(37)
25
(64)
Restructuring
(25)
(40)
(83)
(67)
(25)
(37)
(71)
(59)
Litigations
(59)
–
(83)
(5)
(59)
–
(83)
(5)
Divestitures
158
–
158
–
158
–
158
–
Adjustments to post-employ- 
ment benefit entitlements
 
5
 
–
 
21
 
–
 
5
 
–
 
21
 
–
MaterialScience
(1)
(18)
(32)
6
1
(4)
(27)
29
Restructuring
(6)
(18)
(50)
(36)
(4)
(4)
(45)
(13)
Divestitures
–
–
–
42
–
–
–
42
Adjustments to post-employ- 
ment benefit entitlements
 
5
 
–
 
18
 
–
 
5
 
–
 
18
 
–
Reconciliation
(42)
(27)
(110)
(60)
(41)
(27)
(109)
(60)
Restructuring
(24)
(25)
(81)
(58)
(23)
(25)
(80)
(58)
Litigations
(29)
(2)
(55)
(2)
(29)
(2)
(55)
(2)
Adjustments to post-employ- 
ment benefit entitlements
 
11
 
–
 
26
 
–
 
11
 
–
 
26
 
–
Total special items
(424)
(439)
(1,711)
(839)
(425)
(336)
(1,364)
(571)
After special items
729
655
3,928
4,934
1,401
1,433
6,916
7,830
2012 figures restated
*		EBIT = earnings before financial result and taxes
**	EBITDA = EBIT plus amortization and impairment losses on intangible assets and depreciation and impairment losses on property, plant and equipment,  
minus impairment loss reversals
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16. Earnings; Asset and Financial Position of the Bayer Group
16.4 Value Management
The calculation of earnings per share according to IFRS is explained in Note [16] to the consolidated 
­financial statements. Core net income, core earnings per share and core EBIT are not defined in IFRS.
16.4 Value Management
System based on Cash value added
The principal value-based steering parameters in the Bayer Group are the cash value added (CVA) and 
the cash flow return on investment (CFROI). If the CVA is positive, the respective company or business en-
tity has exceeded the minimum requirements of the equity and debt capital providers and has created 
value. The CFROI is a ratio indicating the profitability of the Group or of individual business entities and 
must be compared to the cost of capital.
Calculating the cost of capital
Bayer calculates the cost of capital according to the debt / equity ratio at the beginning of the year using 
the weighted average cost of capital (WACC) formula. The cost of equity capital is the return expected by 
stockholders, computed from capital market information. The cost of debt capital used in calculating 
WACC is based on the terms for ten-year Eurobonds issued by industrial companies with an “A–”rating.
To take into account the different risk and return profiles of our principal businesses, we calculate indi-
vidual capital cost factors after income taxes for each of our subgroups. These were 7.9% (2012: 8.1%) 
for HealthCare, 7.3% for CropScience (2012: 7.5%) and 6.9% (2012: 7.1%) for MaterialScience. The 
capital cost factor for the Group in 2013 was 7.6% (2012: 7.8%).
 	Consolidated 
	Financial 
	Statements 
	Note 16
Cost of capital for  
the Bayer Group
7.6% 
Core Earnings per Share
[Table 3.16.3]
 
4th Quarter 
2012
4th Quarter 
2013
Full Year  
2012
Full Year  
2013
 
€ million
€ million
€ million
€ million
EBIT (as per income statements)
729
655
3,928
4,934
Amortization and impairment losses / loss reversals  
of intangible assets
 
327
 
437
 
1,637
 
1,559
Impairment losses / loss reversals on property,  
plant and equipment 
 
9
 
21
 
41
 
48
Special items (other than amortization and  
impairment losses / loss reversals)
 
425
 
336
 
1,364
 
571
Core EBIT
1,490
1,449
6,970
7,112
Financial result (as per income statements)
(169)
(84)
(752)
(727)
Special items in the financial result
(73)
(72)
(73)
10
Income taxes (as per income statements)
(156)
(129)
(723)
(1,021)
Tax effects related to amortization,  
impairment losses / loss reversals and special items 
 
(255)
 
(266)
 
(1,024)
 
(734)
Income after income taxes attributable  
to non-controlling interest (as per income statements)  
 
(38)
 
13
 
(50)
 
3
Special items in income after income taxes attributable  
to non-controlling interest
 
35
 
–
 
35
 
–
Core net income
834
911
4,383
4,643
 
 
Shares
 
 
Shares
 
 
Shares
 
 
Shares
Number of issued ordinary shares
826,947,808
826,947,808
826,947,808
826,947,808
Core earnings per share (€)
1.01
1.10
5.30
5.61
2012 figures restated
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16. Earnings; Asset and Financial Position of the Bayer Group
16.4 Value Management
Gross cash flow, cash value added and cash flow return on investment 
as performance yardsticks
The gross cash flow is the measure of our internal financing capability. Bayer has chosen this 
­parameter because it is relatively free of accounting influences and is therefore a more meaningful 
performance indicator.
Taking into account the costs of capital and of reproducing depletable assets, we determine the gross 
cash flow hurdle. If the gross cash flow hurdle is exceeded, the CVA is positive and thus the required 
­return on equity and debt plus the cost of asset reproduction has been earned. 
The CFROI is the difference between the gross cash flow and the cost of reproducing depletable assets, 
divided by the capital invested. The capital invested is calculated from the statement of financial position 
and basically comprises the property, plant and equipment and intangible assets required for operations 
– stated at the historical cost of acquisition or construction – plus working capital, less interest-free lia-
bilities (such as current provisions). To mitigate the effect of fluctuations in the capital invested during 
the year, the CFROI is computed on the basis of the average capital invested for the respective year.
The gross cash flow hurdle for 2013 was €4,260 million (2012: €4,337 million).
Actual gross cash flow came in at €5,832 million, exceeding the hurdle by 36.9%. Thus the entire cost of 
capital and asset reproduction costs were earned in 2013. The positive CVA of €1,572 million shows that 
Bayer exceeded the minimum return and reproduction requirements and created value. The CVA rose by 
a clear €1,353 million compared with 2012. The CFROI for 2013 amounted to 11.1% (2012: 8.2%).  
HealthCare and CropScience exceeded their required returns (including asset reproduction),  
raised their CVA and helped to increase the value of the Group. At MaterialScience, capital expenditures 
for new production facilities form the basis for profitable growth in the future. This strategic investment 
is aligned to medium- and long-term market developments and is currently holding back this subgroup’s 
value management indicators.
Positive CVA =  
value created
Value Management Indicators by Subgroup
[Table 3.16.4]
HealthCare
CropScience
MaterialScience
Bayer Group
 
2012
2013
2012
2013
2012
2013
2012
2013
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Gross cash flow* (GCF)
2,659
3,573
1,332
1,590
952
887
4,556
5,832
Gross cash flow hurdle
2,214
2,109
824
906
1,079
1,060
4,337
4,260
Cash value added (CVA)
445
1,464
508
684
(127)
(173)
219
1,572
Cash flow return on  
investment (CFROI)
 
10.3%
 
14.1%
 
12.5%
 
14.2%
 
5.8%
 
5.5%
 
8.2%
 
11.1%
WACC
8.1%
7.9%
7.5%
7.3%
7.1%
6.9%
7.8%
7.6%
Average capital invested
22,180
22,480
9,203
9,881
10,525
10,371
43,247
43,548
2012 figures restated
Delta cash value added is not listed due to its limited importance.
*	For definition see Chapter 16.5 “Liquidity and Capital Expenditures of the Bayer Group.”
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16. Earnings; Asset and Financial Position of the Bayer Group
16.5 Liquidity and Capital Expenditures of the Bayer Group
16.5 Liquidity and Capital Expenditures  
	
of the Bayer Group
Operating cash flow
Gross cash flow climbed by 28.0% year on year in 2013 to €5,832 million, mainly on account of the 
­increase in EBIT. While HealthCare and CropScience recorded a business-related increase in cash tied 
up in working capital, MaterialScience was able to release cash thanks to successful working capital 
management. Cash flow was impacted by higher charges related to legal claims. Income tax payments 
were lower at €1,281 million (2012: €1,667 million). Net cash flow of the Group rose by 14.2% to 
€5,171 million. 
Investing cash flow
Net cash outflow for investing activities in 2013 amounted to €2,581 million. Cash outflows for proper-
ty, plant and equipment and intangible assets were 11.8% higher at €2,157 million and included 
€809 million (2012: €720 million) at HealthCare, €538 million (2012: €376 million) at CropScience and 
€559 million (2012: €621 million) at MaterialScience. The €1,082 million (2012: €466 million) in out-
flows for acquisitions mainly related to the acquisition of Conceptus, Inc., United States, and Steiger-
wald Arzneimittelwerk GmbH, Germany. The cash inflows in 2013 comprised €79 million (2012: 
€178 million) pertaining to divestitures, mainly income from the sale of the global powder polyester 
resins business and revenue-based payments received in connection with the sale of the hematologi-
cal oncology portfolio to Genzyme Corp., United States. Interest and dividends totaling €125 million 
(2012: €104 million) were also received along with income of €301 million (2012: €1,069 million) from 
noncurrent and current financial assets.
Bayer Group Summary Statements of Cash Flows
[Table 3.16.5]
 
2012
2013
 
€ million
€ million
Gross cash flow *
4,556
5,832
Changes in working capital / other non-cash items
(26)
(661)
Net cash provided by (used in) operating activities (net cash flow)
4,530
5,171
Net cash provided by (used in) investing activities
(814)
(2,581)
Net cash provided by (used in) financing activities
(3,783)
(2,535)
Change in cash and cash equivalents due to business activities
(67)
55
Cash and cash equivalents at beginning of period
1,771
1,698
Change due to exchange rate movements and to changes in scope of consolidation
(6)
(91)
Cash and cash equivalents at end of period
1,698
1,662
2012 figures restated
*	Gross cash flow = income after income taxes, plus income taxes, plus financial result, minus income taxes paid or accrued, plus deprecia-
tion, amortization and impairment losses, minus impairment loss reversals, plus / minus changes in pension provisions, minus gains / plus 
losses on retirements of noncurrent assets, minus gains from the remeasurement of already held assets in step acquisitions. The change in 
pension provisions includes the elimination of non-cash components of EBIT. It also contains benefit payments during the year.
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Bayer Annual Report 2013
16. Earnings; Asset and Financial Position of the Bayer Group
16.5 Liquidity and Capital Expenditures of the Bayer Group
The principal strategically relevant capital expenditures for property, plant and equipment in the 
­operating segments during the past two years are listed in the following table:
Capital Expenditures for Property, Plant and Equipment
[Table 3.16.6]
Segment
Description
CAPITAL EXPENDITURES 2013
Pharmaceuticals 
Consolidation of a number of administrative and business operations in Whippany,  
New Jersey, U.S.A.
Expansion of XareltoTM production capacities in Wuppertal and Leverkusen, Germany
Expansion of production capacities for biologics in Wuppertal, Germany
Consumer Health
–
CropScience 
Capacity expansion and process modifications for the production of fungicides in  
Germany, Switzerland and the U.S.A. and for related formulation units in France
Expansion of manufacturing capacities for herbicidal active ingredients in Germany  
and the U.S.A.
Establishment of breeding stations for wheat in Europe, North America and Asia / Pacific,  
for soybeans in North America and Latin America, and for other crops and trait  
development
MaterialScience 
Doubling of production capacities for polycarbonates in Shanghai, China
Expansion of production capacities for MDI (diphenylmethane diisocyanate)  
in Shanghai, China
Construction of a world-scale production complex for TDI (toluene diisocyanate) based 
on gas-phase phosgenation technology in Dormagen, Germany
Completion of a multi-purpose facility for the aliphatic isocyanates HDI (hexamethylene 
diisocyanate) and IPDI (isophorone diisocyanate) in Leverkusen, Germany
CAPITAL EXPENDITURES 2012
Pharmaceuticals 
Consolidation of a number of administrative and business operations in Whippany,  
New Jersey, U.S.A.
Establishment of a pilot facility for the production of biomolecules for clinical trials  
in Wuppertal, Germany
Production facilities for the formulation and packaging of hormonal solids in Weimar, 
Germany
Expansion of XareltoTM production capacities in Wuppertal and Leverkusen,  
Germany
Consumer Health 
Expansion of production and packaging capacities for effervescents in Cimanggis, 
Jakarta, Indonesia
CropScience 
Capacity expansions and process modifications for the production of fungicides in 
Germany and Switzerland
Establishment of wheat breeding stations in Europe, North America and Australia
Construction of a greenhouse in Research Triangle Park, North Carolina, U.S.A.
MaterialScience 
Construction of a world-scale production complex for TDI (toluene diisocyanate) based 
on gas-phase phosgenation technology in Dormagen, Germany
Construction of a multi-purpose facility for the aliphatic isocyanates HDI (hexamethylene 
diisocyanate) and IPDI (isophorone diisocyanate) in Leverkusen, Germany
Completion of a polyurethanes systems house in Qingdao, China
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Bayer Annual Report 2013
16. Earnings; Asset and Financial Position of the Bayer Group
16.5 Liquidity and Capital Expenditures of the Bayer Group
Financing cash flow
Net cash outflow for financing activities in 2013 amounted to €2,535 million, including net loan repay-
ments of €619 million (2012: €1,946 million). The increased use of current financial instruments led to a 
higher debt turnover ratio.
Net interest payments were 27.8% lower at €338 million (2012: €468 million). The cash outflow for 
­“dividend payments and withholding tax on dividends” amounted to €1,574 million (2012: €1,366 million).
Liquid assets and net financial debt
Net financial debt of the Bayer Group as of December 31, 2013 was lower than on December 31, 2012, at 
€6.7 billion. Cash inflows from operating activities were partly offset by outflows for dividends and acqui-
sitions. As of December 31, 2013, the Group had cash and cash equivalents of €1.7 billion (2012: €1.7 bil-
lion). Financial liabilities at the end of the reporting period amounted to €8.5 billion (2012: €9.1 billion), 
with the subordinated hybrid bond issued in July 2005 reflected at €1.3 billion. Net financial debt should 
be viewed against the fact that Moody’s and Standard & Poor’s treat 75% and 50%, respectively, of the 
hybrid bond as equity. Unlike conventional borrowings, the hybrid bond thus only has a limited effect  
on the Group’s rating-specific debt indicators. Our noncurrent financial liabilities declined in 2013 from 
€7.0 billion to €5.6 billion, while current financial liabilities rose from €2.6 billion to €3.4 billion.
Net Financial Debt
[Table 3.16.7]
Dec. 31, 2012
Dec. 31, 2013
€ million
€ million
Bonds and notes / promissory notes
5,528
4,520
of which hybrid bond
1,364
1,344
Liabilities to banks
2,841
2,302
Liabilities under finance leases
542
382
Liabilities from derivatives
304
310
Other financial liabilities
310
1,516
Positive fair values of hedges of recorded transactions
(456)
(504)
Financial liabilities
9,069
8,526
Cash and cash equivalents
(1,698)
(1,662)
Current financial assets
(349)
(133)
Net financial debt
7,022
6,731
2012 figures restated
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Bayer Annual Report 2013
16. Earnings; Asset and Financial Position of the Bayer Group
16.6 Asset and Capital Structure of the Bayer Group
16.6 Asset and Capital Structure of the Bayer Group
Total assets as of December 31, 2013, were unchanged from the previous year at €51.3 billion. Noncur-
rent assets were at the prior-year level of €32.3 billion and included goodwill of €9.9 billion (2012: 
€9.3 billion). The increase in goodwill was mainly the result of acquisitions made in 2013. The decline 
in other intangible assets and fluctuations in exchange rates had a negative effect. The carrying amount 
of current assets was also level with the previous year, at €19.0 billion.  
Equity was higher by €2.2 billion at €20.8 billion. The factors in this increase included the net income  
of €3.2 billion and the decline of €1.3 billion – recognized outside profit or loss – in post-employment 
benefit obligations. The €1.6 billion (2012: €1.4 billion) dividend payment and €0.7 billion (2012: €0 bil-
lion) in negative exchange differences had an offsetting effect. Our equity ratio (equity coverage of total 
assets) as of December 31, 2013 was 40.5% (2012: 36.1%). 
Liabilities receded by €2.3 billion compared with December 31, 2012, to €30.5 billion, mainly because  
of the decline in provisions for pensions and other post-employment benefits.
The net defined benefit liability for pensions and other post-employment benefits decreased from ­€9.2 bil-
lion to €7.3 billion in 2013, mainly in light of higher long-term capital market interest rates. 
Bayer Group Summary Statements of Financial Position
[Table 3.16.8]
 
Dec. 31, 2012
Dec. 31, 2013
Change
 
€ million
€ million
%
Noncurrent assets
32,308
32,289
– 0.1
Current assets
19,010
19,028
+ 0.1
Total assets
51,318
51,317
– 
 
 
 
 
Equity
18,551
20,804
+ 12.1
Noncurrent liabilities
19,663
16,490
– 16.1
Current liabilities
13,104
14,023
+ 7.0
Liabilities
32,767
30,513
– 6.9
Total equity and liabilities 
51,318
51,317
–
2012 figures restated
Net Defined Benefit Liability for Post-Employment Benefits
[Table 3.16.9]
 
Dec. 31, 2012
Dec. 31, 2013
 
€ million
€ million
Provisions for pensions and other post-employment benefits
9,246
7,368
Benefit plan assets in excess of obligation
(27)
(117)
Net defined benefit liability for post-employment benefits
9,219
7,251
2012 figures restated
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Bayer Annual Report 2013
16. Earnings; Asset and Financial Position of the Bayer Group
16.6 Asset and Capital Structure of the Bayer Group
Ratios/Indicators
[Table 3.16.10]
 
 
2012
2013
Cost of sales ratio (%) 
Cost of goods sold
48.0 
 
48.2 
 
Sales
R & D expense ratio (%) 
Research and development expenses
7.6  
7.9  
Sales
Return on sales (%) 
Income after income taxes
6.2 
7.9 
Sales
EBIT margin (%) 
EBIT 
9.9 
12.3 
Sales 
EBITDA margin before special items (%) 
EBITDA before special items
20.8 
20.9 
Sales 
 
Asset intensity (%) 
Property, plant and equipment  
+ intangible assets 
 
55.8 
 
56.1 
Total assets 
Reinvestment ratio (%) 
Capital expenditures * 
119.9 
137.5 
Depreciation *
Liability structure (%)  
Current liabilities 
40.0 
46.0 
Liabilities 
Gearing  
Net debt + pension provisions 
0.9 
0.7 
Equity
Free operating cash flow (€ million) 
 
Net operating cash flow  
less cash outflows for property, plant  
and equipment and intangible assets
2,601 
 
3,014 
 
Inventory turnover  
Cost of goods sold 
2.7 
2.7 
Inventories 
 Receivables turnover 
Sales 
 
5.3
 
5.3
Trade accounts receivable
 Payables turnover 
Cost of goods sold 
 
4.4
 
4.3
Trade accounts payable 
Equity ratio (%)  
Equity 
36.1 
40.5 
Total assets 
Return on equity (%)  
Income after income taxes 
13.0 
16.2 
Average equity
Return on assets (%)
Income before income taxes and interest expense
7.5
9.5
Average total assets for the year
2012 figures restated
*	property, plant and equipment
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Combined Management Report
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16. Earnings; Asset and Financial Position of the Bayer Group
16.7 Financial Management of the Group
16.7 Financial Management of the Group
The financial management of the Bayer Group is conducted by the strategic management holding 
company Bayer AG. Capital is a global resource, generally procured centrally and distributed within 
the Group. The foremost objectives of our financial management are to help bring about a sustained 
increase in corporate value and to ensure the Group’s liquidity and creditworthiness. This involves 
­optimizing the capital structure and effectively managing risks. The management of currency, interest 
rate, raw material price and default risks helps to reduce the volatility of our earnings.
The contracted rating agencies assess Bayer as follows: 
These credit ratings reflect the company’s high solvency and ensure access to a broad investor base for 
financing purposes. It remains our goal to achieve and maintain financial ratios that support an A rating 
in order to maintain our financial flexibility. 
We pursue a prudent debt management strategy to ensure flexibility, drawing on a balanced financing 
portfolio. Chief among these resources are a multi-currency European Medium Term Notes program, 
syndicated credit facilities, bilateral loan agreements and a global commercial paper program. 
We use financial derivatives to hedge against risks arising from business operations or financial 
­transactions, but do not employ contracts in the absence of an underlying transaction. It is our policy to 
diminish default risks by selecting trading partners with a high credit standing. We closely monitor the 
execution of all transactions, which are conducted in accordance with Group directives.
Further details of our risk management objectives and the ways in which we account for all the major 
types of hedged transactions – along with price, credit and liquidity risks as they relate to the use of 
­financial instruments – are given in Chapter 20.3 “Opportunity and Risk Report.”
Rating
[Table 3.16.11]
 
Long-term rating
Outlook
Short-term rating
Standard & Poor’s
A – 
positive
A – 2
Moody’s
A3
positive
P – 2
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Bayer Annual Report 2013
17. Earnings; Asset and Financial Position of Bayer AG
17.1 Earnings Performance of Bayer AG
17. Earnings; Asset and Financial Position  
of Bayer AG
Bayer AG is the parent corporation of the Bayer Group and functions as a management holding 
­company. The principal management functions for the entire Group are performed by the Board of 
Management of Bayer AG. These include strategic planning, resource allocation, executive manage-
ment and financial management. The performance of Bayer AG is largely determined by the  
business performance of the Bayer Group.
The financial statements of Bayer AG are prepared in accordance with the German Commercial Code 
(HGB) and Stock Corporation Act (AktG).
17.1. Earnings Performance of Bayer AG
In fiscal 2013 Bayer AG’s net income increased by €1,609 million to €2,498 million, mainly because of sig-
nificantly higher income from investments in affiliated companies and a decrease in net interest expense. 
The main negative effect came from higher income taxes.
Income from investments in affiliated companies posted a large increase of €1,823 million to €3,542 mil-
lion. The previous year’s income was impacted by a one-time charge of €256 million in connection with 
the extension of the period during which various subsidiaries are assuming the pension fund’s long-term 
statutory obligation to raise pensions. Bayer Pharma AG again made the largest contribution to income 
from investments in affiliated companies with income of €1,934 million (2012: €1,397 million). This sig-
nificant improvement was mainly attributable to the good business performance resulting from a higher 
proportion of high-margin, recently launched products, as well as the non-recurrence of the one-time 
pension charge. Bayer CropScience AG increased its contribution to earnings by €933 million to €1,379 
million (2012: €446 million). This amount included €570 million from the intra-Group sale of seed tech-
Bayer AG Summary Income Statements according to the German Commercial Code
[Table 3.17.1]
 
2012
2013
 
€ million
€ million
Income from investments in affiliated companies – net
1,719
3,542
Interest expense – net
(445)
(315)
Other financial income – net
89
110
Other operating income
87
118
General administration expenses
(228)
(266)
Other operating expenses
(106)
(148)
Income before income taxes
1,116
3,041
Income taxes
(227)
(543)
Net income
889
2,498
Withdrawal from / allocation to retained earnings
682
(761)
Distributable profit
1,571
1,737
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Bayer Annual Report 2013
17. Earnings; Asset and Financial Position of Bayer AG
17.1. Earnings Performance of Bayer AG
nologies. Earnings of the ­CropScience subgroup were also driven by the positive business development, 
especially the substantial rise in volumes and an improved product mix. A loss of €20 million (2012: 
€179 million) was assumed for Bayer MaterialScience AG. However, this was considerably lower than in 
the previous year, principally because of the impact of extensive cost-cutting programs on operational 
earnings. Other significant earnings contributions comprised €213 million (2012: €291 million) from a 
subsidiary that receives foreign dividend income. Bayer Business Services GmbH posted a loss of €74 
million (2012: €103 million), and Bayer Technology Services GmbH reported a loss of €30 million (2012: 
€59 million). 
Net interest expense declined by €130 million compared with the previous year, to €315 million, thanks 
mainly to lower interest rates and also to the restructuring of some debt into lower-interest instruments. 
Of the net interest expense, €218 million was attributable to transactions with third parties and €97  
million to intra-Group transactions. 
Other financial income and expenses yielded a positive balance of €110 million (2012: €89 million). This 
mainly comprised income of €162 million (2012: €183 million) from the subgroups and service compa-
nies to cover pension expenses for retirees remaining with Bayer AG following the hive-down of the op-
erating business. The non-interest portion of the corresponding expense, amounting to €26 million 
(2012: €56 million), is included in other financial expenses; the remainder is reflected in net interest ex-
pense. A further charge of €14 million (2012: €33 million) resulted from the translation of foreign curren-
cy receivables and payables and from currency derivatives. 
General administration expenses relating to Bayer AG’s performance of its functions as a holding company 
amounted to €266 million (2012: €228 million). Miscellaneous operating expenses relating to these func-
tions, net of the respective miscellaneous operating income, came to €30 million (2012: €19 million). The 
increase in administration expenses was attributable to the higher number of employees and higher per-
formance-related compensation. The other operating expenses include an amount of €14 million for the 
company’s 150th anniversary celebrations.
Pre-tax income increased by €1,925 million to €3,041 million (2012: €1,116 million).  Tax expense also in-
creased, by €316 million to €543 million. After deduction of taxes, net income was €2,498 million (2012: 
€889 million). An allocation of €761 million was made to other retained earnings, leaving a distributable 
profit of €1,737 million.
The Board of Management and Supervisory Board will propose to the Annual Stockholders’ Meeting on 
April 29, 2014 that the distributable profit be used to pay a dividend of €2.10 per share (826,947,808 
shares) on the capital stock of €2,117 million entitled to the dividend for 2013.
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Combined Management Report
Bayer Annual Report 2013
17. Earnings; Asset and Financial Position of Bayer AG
17.2. Asset and Financial Position of Bayer AG
17.2 Asset and Financial Position of Bayer AG
The asset and liability structure of Bayer AG is dominated by its role as a holding company in manag-
ing the subsidiaries and financing corporate activities. This is primarily reflected in the high level of 
investments in affiliated companies and of receivables from, and payables to, Group companies.
Total assets of Bayer AG as of December 31, 2013 were €38.5 billion (2012: €36.0 billion), which was 
€2.5 billion more than at the start of the year. Non-current assets rose by €1.0 billion and current as-
sets by €1.5 billion. 
Bayer AG Summary Statements of Financial Position according to the German Commercial Code
[Table 3.17.2]
 
Dec. 31, 2012
Dec. 31, 2013
 
€ million
€ million
ASSETS
 
 
 
 
 
Noncurrent assets
 
 
Intangible assets, property, plant and equipment
22
21
Financial assets
34,310
35,300
 
34,332
35,321
 
 
 
Current assets
 
 
Receivables from subsidiaries
316
1,712
Remaining receivables, other assets
471
455
Cash and cash equivalents, marketable securities
903
972
 
1,690
3,139
 
 
 
Total assets
36,022
38,460
 
 
EQUITY AND LIABILITIES
 
 
 
 
 
Equity
13,888
14,815
 
 
 
Provisions
2,719
2,976
 
 
 
Other liabilities
 
 
Bonds and notes, liabilities to banks
3,188
2,229
Payables to subsidiaries
15,874
16,983
Remaining liabilities
353
1,457
 
19,415
20,669
 
 
 
Total equity and liabilities
36,022
38,460
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Combined Management Report
Bayer Annual Report 2013
17. Earnings; Asset and Financial Position of Bayer AG
17.2 Asset and Financial Position of Bayer AG
Property, plant and equipment and intangible assets totaled €21 million (2012: €22 million) and were 
therefore of secondary importance. Financial assets increased by €1 billion, from €34.3 billion in the pre-
vious year to €35.3 million at year end 2013, principally as a result of capital increases at subsidiaries. 
Investments in affiliated companies continued to account for by far the greater proportion of total assets 
(89.7%; 2012: 93.0%).
Receivables from subsidiaries amounted to €1.7 billion (2012: €0.3 billion) while payables to subsidiaries 
totaled €17.0 billion (2012: €15.9 billion). These amounts accounted for 4.5% of total assets and 44.2% 
of total equity and liabilities, respectively. 
Including the deferred charges, the other receivables reflected in current assets declined by €16 million 
to €455 million (2012: €471 million) and were of only secondary importance in relation to total assets. 
Cash and cash equivalents were €69 million higher than in the previous year at €972 million (2012: €903 
million) due to higher bank deposits.
Bayer AG had equity of €14.8 billion (2012: €13.9 billion), an increase of €0.9 billion.  Equity included 
net income for 2013 of €2,498 million, but was diminished by the €1,571 million dividend payment for 
2012. The equity ratio was virtually unchanged at 38.5% (2012: 38.6%) despite the considerable in-
crease in equity, as total assets also increased.
Provisions rose by €0.3 billion to €3.0 billion (2012: €2.7 billion). The greater part of this increase was at-
tributable to a rise of €304 million in tax provisions to €682 million (2012: €378 million). Provisions for 
other personnel-related obligations, especially performance-related compensation, were increased by 
€28 million. By contrast, pension provisions decreased by €55 million to €2,162 million (2012: 2,217 mil-
lion). 
Other liabilities rose by €1.3 billion, mainly due to an increase of €1.2 billion in financial debt, and 
amounted to €20.7 billion (net of deductible receivables; 2012: €19.4 billion). A bond with a nominal vol-
ume of €1 billion, issued in 2006, was redeemed at maturity in May 2013. However, a commercial paper 
program was increased by €795 million, intra-Group debt rose by €1,304 million and other loans were 
€51 million higher. Bayer AG had financial liabilities of €22.1 billion at year end 2013 (2012: €20.9 bil-
lion). After deduction of cash and cash equivalents of €1.0 billion, net debt was higher than in the 
previous year at €21.1 billion (2012: €20.0 billion).
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Combined Management Report
Bayer Annual Report 2013
18. Corporate Governance Report
18.1 Declaration Concerning the German Corporate Governance Code
Report on Corporate Governance
18. Corporate Governance Report
This Corporate Governance Report also constitutes the report pursuant to Section 3.10 of the German 
Corporate Governance Code.
18.1 Declaration Concerning the German Corporate 
Governance Code *
	
* not part of the audited management report
Declaration by the Board of Management and Supervisory Board
concerning the German Corporate Governance Code (May 13, 2013 version) pursuant to Section 161  
of the German Stock Corporation Act**
Under Section 161 of the German Stock Corporation Act, the Board of Management and the Supervisory 
Board of Bayer AG are required to issue an annual declaration that the company has been, and is, in 
­compliance with the recommendations of the “Government Commission on the German Corporate Gover-
nance Code” as published by the Federal Ministry of Justice in the official section of the Federal Gazette 
(Bundesanzeiger), or to advise of any recommendations that have not been, or are not being, applied and 
the reasons for this. An annual declaration was last issued in December 2012. 
With respect to the past, the following declaration refers to the May 15, 2012 version of the Code.  
With respect to present and future corporate governance practices at Bayer AG, the following declaration 
refers to the recommendations in the May 13, 2013 version of the Code. 
Pursuant to Section 161 of the German Stock Corporation Act, the Board of Management and 
­Supervisory Board of Bayer AG hereby declare as follows:
1. The company has been in compliance with the recommendations of the Code since issuance  
of the last annual compliance declaration in December 2012. 
2. All the recommendations of the Code are now being complied with in full. 
Leverkusen, December 2013
For the Board of Management: 	 	
For the Supervisory Board:	
dr. dekkers	
baumann	
wenning
** This is an English translation of a German document. The German document is the official and controlling version, and this English  
translation in no event modifies, interprets or limits the official German version.
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Combined Management Report
Bayer Annual Report 2013
18. Corporate Governance Report
18.2 Governance
18.2 Governance *
* not part of the audited management report
Bayer in Compliance with the Recommendations of the German Corporate 
Governance Code
Bayer has always placed great importance on responsible corporate governance and will continue to 
do so. In 2013 the company was able to issue a declaration that it had fully complied with the recom-
mendations of the German Corporate Governance Code in the past and continued to do so. 
In 2013, the Board of Management and Supervisory Board again addressed the question of compli-
ance with the Corporate Governance Code, particularly in light of the Code amendments of May 13, 
2013. The resulting declaration, which is reproduced on the previous page, was issued in December 
2013 and posted on Bayer’s website along with previous declarations.
Duties and activities of the Board of Management
Bayer AG is a strategic management holding company, run by its Board of Management on the 
Board’s own responsibility with the goal of sustainably increasing the company’s enterprise value and 
achieving defined corporate objectives. The Board of Management performs its tasks according to the 
law, the Articles of Incorporation and the Board’s rules of procedure, and works with the company’s 
other governance bodies in a spirit of trust.
The Board of Management defines the long-term goals and the strategies for the Group, its subgroups 
and its service companies, and sets forth the principles and directives for the resulting corporate poli-
cies. It coordinates and monitors the most important activities, defines the portfolio, develops and de-
ploys managerial staff, allocates resources and decides on the Group’s financial steering and report-
ing.
The members of the Board of Management bear joint responsibility for running the business as a whole. 
However, the individual members manage the areas assigned to them on their own responsibility within 
the framework of the decisions made by the entire Board. The allocation of duties among the members 
of the Board of Management is defined in a written schedule.
The entire Board of Management makes decisions on all matters of fundamental importance and in cas-
es where a decision of the entire Board is prescribed by law or otherwise mandatory. The rules of proce-
dure of the Board of Management contain a list of topics that must be dealt with and resolved by the en-
tire Board.
Meetings of the Board of Management are held regularly. They are convened by the Chairman of the 
Board of Management. Any member of the Board of Management may also demand that a meeting be 
held. The Board of Management makes decisions by a simple majority of the votes cast, except where 
unanimity is required by law. In the event of a tie, the Chairman has the casting vote.
According to the Board of Management’s rules of procedure and schedule of duties, the Chairman bears 
particular responsibility for leading and coordinating the Board’s work. He represents the company and 
the Group in dealings with third parties and the workforce on matters relating to more than one part of 
the company or the Group. He also bears special responsibility for certain departments of the Corporate 
Center and their fields of activity. 
The schedule of duties also assigns particular areas of specialist responsibility to the other members who 
served on the Board of Management in 2013 with respective responsibility for Finance; Innovation, Tech-
nology and Sustainability; and Human Resources. Each of these members also represents certain geo-
graphical regions. The responsibilities for specialist areas and regions were redistributed in 2013 upon the 
change of the member responsible for Human Resources.
No committees of the Board of Management have been set up in view of the small number of members 
and the role of Bayer AG as a strategic management holding company.
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Combined Management Report
Bayer Annual Report 2013
18. Corporate Governance Report
18.2 Governance
Supervisory Board: Oversight and control functions
The role of the 20-member Supervisory Board is to oversee and advise the Board of Management. Under 
the German Codetermination Act, half the members of the Supervisory Board are elected by the stock-
holders, and half by the company’s employees. The Supervisory Board is directly involved in decisions 
on matters of fundamental importance to the company, regularly conferring with the Board of Manage-
ment on the company’s strategic alignment and the implementation status of the business strategy.
The Chairman of the Supervisory Board coordinates its work and presides over the meetings. Through 
regular discussions with the Board of Management, the Supervisory Board is kept constantly informed 
of business policy, corporate planning and strategy. The Supervisory Board approves the annual budget 
and financial framework. It also approves the financial statements of Bayer AG and the consolidated 
­financial statements of the Bayer Group, along with the combined management report, taking into ac-
count the reports by the auditor.
Committees of the Supervisory Board
The Supervisory Board currently has the following committees:
Presidial Committee: This comprises the Chairman and Vice Chairman of the Supervisory Board along 
with a further stockholder representative and a further employee representative. The Presidial Commit-
tee serves primarily as the mediation committee pursuant to the German Codetermination Act. It has the 
task of submitting proposals to the Supervisory Board on the appointment of members of the Board of 
Management if the necessary two-thirds majority is not achieved in the first vote at a plenary meeting. 
Certain decision-making powers in connection with capital measures, including the power to amend the 
Articles of Incorporation accordingly, have also been delegated to this committee.
Audit Committee: The Audit Committee comprises three stockholder representatives and three em-
ployee representatives. The Chairman of the Audit Committee in 2013, Dr. Klaus Sturany, satisfies the 
statutory requirements concerning the independence and the expertise in the field of accounting or 
auditing that a member of the Supervisory Board and the Audit Committee is required to possess. The 
Audit Committee meets regularly four times a year. Its tasks include examining the company’s finan-
cial reporting along with the financial statements of Bayer AG, the consolidated financial statements of 
the Bayer Group, the combined management report, the proposal for the use of the distributable profit 
of Bayer AG, and the interim financial statements and management reports of the Bayer Group, all of 
which are prepared by the Board of Management. On the basis of the auditor’s report on the audit of 
the financial statements of Bayer AG, the consolidated financial statements of the Bayer Group and the 
combined management report, the Audit Committee develops proposals concerning the approval of 
the statements by the full Supervisory Board. The Audit Committee is also responsible for the compa-
ny’s relationship with the external auditor. The Audit Committee submits a proposal to the full Super-
visory Board concerning the auditor’s appointment, prepares the awarding of the audit contract to the 
audit firm appointed by the Annual Stockholders’ Meeting, suggests areas of focus for the audit and 
determines the auditor’s remuneration. It also monitors the independence, qualifications, rotation and 
efficiency of the auditor.
In addition, the Audit Committee oversees the company’s internal control system – along with the proce-
dures used to identify, track and manage risk – and the internal audit system. It also deals with corporate 
compliance issues and discusses developments in this area at each of its meetings.
Human Resources Committee: On this committee, too, there is parity of representation between stock-
holders and employees. It consists of the Chairman of the Supervisory Board and three other members. 
The Human Resources Committee prepares the personnel decisions of the full Supervisory Board, which 
resolves on appointments or dismissals of members of the Board of Management. The Human Resources 
Committee resolves on behalf of the Supervisory Board on the service contracts of the members of the 
Board of Management. However, it is the task of the full Supervisory Board to resolve on the total com-
pensation of the individual members of the Board of Management and the respective compensation 
components, as well as to regularly review the compensation system on the basis of recommendations 
submitted by the Human Resources Committee. The Human Resources Committee also discusses the 
long-term succession planning for the Board of Management.
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Bayer Annual Report 2013
18. Corporate Governance Report
18.2 Governance
Nominations Committee: This committee carries out preparatory work when an election of stockhold-
er representatives to the Supervisory Board is to be held. It suggests suitable candidates for the Su-
pervisory Board to propose to the Annual Stockholders’ Meeting for election. The Nominations Com-
mittee comprises the Chairman of the Supervisory Board and the other stockholder representative on 
the Presidial Committee.
Detailed information on the work of the Supervisory Board and its committees is provided in the Report 
of the Supervisory Board on page 32ff. of this Annual Report.
Objectives for the composition of the Supervisory Board
The Supervisory Board should be composed in such a way that its members together possess the neces-
sary expertise, skills and professional experience to properly perform their duties. In view of Bayer AG’s 
global operations, the Supervisory Board has set itself the goal of always having several members with 
international business experience or an international background. A further objective concerning the 
composition of the Supervisory Board is that, absent special circumstances, its members should not hold 
office beyond the end of the next Annual Stockholders’ Meeting following their 72nd birthday. With a 
view to avoiding potential conflicts of interest, the Supervisory Board has set itself the goal that more 
than half of the stockholder representatives be independent and also that at least three quarters of the 
total Supervisory Board membership (stockholder and employee representatives) be independent. The 
Supervisory Board assesses the independence of its members according to the recommendation con-
tained in Section 5.4.2 of the the German Corporate Governance Code. In assessing independence, the 
Supervisory Board also considers the criteria given in the recommendation of the European Commission 
of February 15, 2005.1
Another goal for the composition of the Supervisory Board is to increase the proportion of women on the 
Supervisory Board to at least 20% in the medium term and for the female membership to be distributed as 
evenly as possible between the stockholder and employee groups. It is intended to achieve this goal when 
the entire Supervisory Board is elected in 2017. 
The goals described refer to the Supervisory Board as a whole unless resolved otherwise. However, 
since the Supervisory Board can only nominate candidates for election as stockholder representatives, 
it can only take the targets into account in these nominations.
Implementation status of the objectives
The Supervisory Board has several members with international business experience and other interna-
tional connections. The objective that members should step down from the Supervisory Board at the 
­Annual Stockholders’ Meeting following their 72nd birthday is fully met. One member of the Supervisory 
Board, Werner Wenning, was the Chairman of the company‘s Board of Management until 2010. One 
member, Ernst-Ludwig Winnacker, has been a member of the Supervisory Board since 1997, and thus 
has served more than three terms of office. However, neither Mr. Wenning nor Mr. Winnacker has any 
personal or business relationship with the company or a governance body of the company that in the 
opinion of the Supervisory Board gives rise to a material conflict of interest of a more than temporary 
­nature. The proportion of women on the Supervisory Board is currently 15%. A female candidate has 
been nominated for election to the Supervisory Board at the 2014 Annual Stockholders’ Meeting. If she 
is elected, this will bring the proportion of women on the Supervisory Board to 20%.
Disclosure of securities transactions by members of the Board  
of Management or Supervisory Board
Members of the Board of Management and Supervisory Board and their close relatives are legally required 
to disclose all transactions involving the purchase or sale of Bayer stock where such transactions total 
€5,000 or more in a calendar year. Bayer publishes details of such transactions immediately on its website 
and also notifies the German Financial Supervisory Authority accordingly. This information is provided to 
the company register for archiving. The following transactions in 2013 were reported to Bayer AG: 
1 Annex 2 to the recommendation of the European Commission of February 15, 2005, on the role of non-executive or supervisory directors of 
listed companies and on the committees of the (supervisory) board (2005/162/EC)
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Bayer Annual Report 2013
18. Corporate Governance Report
18.2 Governance
Information filed with the company by members of the Board of Management and Supervisory Board 
shows that, on the closing date for the financial statements, their total holdings of Bayer AG stock or 
­related financial instruments were equivalent to less than 1% of the issued stock.
Securities Transactions by Members of the Board of Management or Supervisory Board
[Table 3.18.1]
Date / Place 
 
Security / Right 
 
Financial  
instrument 
ISIN 
 
Transaction 
 
Price /  
Currency 
Quantity 
 
Total  
transaction  
volume
Dec. 27, 2013 /  
Xetra
Werner Baumann, 
Board of Management
 
Shares 
 
DE000BAY0017
 
Sale 
 
EUR 102.87
 
4,600
 
EUR 473,211.20
Nov. 11, 2013 /  
Xetra
Oliver Zühlke, 
Supervisory Board
 
Shares 
 
DE000BAY0017 
 
Sale
 
EUR 93.88 
 
9
 
EUR 844.92  
Nov. 4, 2013 /  
Düsseldorf 
Michael  
Schmidt-Kiessling, 
Supervisory Board 
 
 
Shares 
 
 
DE000BAY0017
 
 
Sale 
 
 
EUR 92.40
 
 
90
 
 
EUR 8,316.00
Aug. 15, 2013 /  
Xetra
Dr. Marijn Dekkers, 
Board of Management
 
Shares 
 
DE000BAY0017 
 
Purchase
 
EUR 85.96
 
6,000
 
EUR 515,760.00  
April 23, 2013 /  
Düsseldorf
Oliver Zühlke, 
Supervisory Board
 
Shares 
 
DE000BAY0017 
 
Sale
 
EUR 79.46
 
50
 
EUR 3,973.00 
March 6, 2013 /  
Frankfurt 
Oliver Zühlke, 
Supervisory Board
 
Shares 
 
DE000BAY0017  
 
Sale
 
EUR 77.86
 
20
 
EUR 1,557.20
March 5, 2013 /  
Xetra 
Werner Wenning, 
Supervisory Board
 
Shares 
 
DE000BAY0017 
 
Purchase
 
EUR 76.12
 
297
 
EUR 22,607.79 
March 5, 2013 /  
Xetra 
Dr. Paul Achleitner, 
Supervisory Board
 
Shares 
 
DE000BAY0017 
 
Purchase
 
EUR 76.12
 
400
 
EUR 30,448.20 
March 5, 2013 /  
Xetra 
Dr. Clemens Börsig, 
Supervisory Board
 
Shares 
 
DE000BAY0017 
 
Purchase
 
EUR 76.12
 
267
 
EUR 20,324.17 
March 5, 2013 /  
Xetra 
Thomas Ebeling, 
Supervisory Board
 
Shares 
 
DE000BAY0017 
 
Purchase
 
EUR 76.12
 
267
 
EUR 20,324.17 
March 5, 2013 /  
Xetra 
Dr. Thomas Fischer, 
Supervisory Board
 
Shares 
 
DE000BAY0017 
 
Purchase 
 
EUR 76.12
 
400
 
EUR 30,448.20
March 5, 2013 /  
Xetra 
Dr. Klaus Kleinfeld, 
Supervisory Board
 
Shares 
 
DE000BAY0017 
 
Purchase
 
EUR 76.12
 
267
 
EUR 20,324.17
March 5, 2013 /  
NYSE  
 
Sue H. Rataj, 
Supervisory Board 
 
Bayer AG  
American  
Depositary  
Receipts (ADR) 
 
 
 
US0727303028 
 
 
 
Purchase
 
 
 
US$ 101.75 
 
 
 
273
 
 
 
US$ 27,777.75
March 5, 2013 /  
Xetra  
Michael  
Schmidt-Kiessling, 
Supervisory Board
 
 
Shares 
 
 
DE000BAY0017 
 
 
Purchase
 
 
EUR 76.12
 
 
267
 
 
EUR 20,324.17
March 5, 2013 /  
Xetra  
Prof. Dr.-Ing.  
Ekkehard D. Schulz, 
Supervisory Board
 
 
Shares 
 
 
DE000BAY0017 
 
 
Purchase
 
 
EUR 75.70
 
 
500
 
 
EUR 37,850.00 
March 5, 2013 /  
Xetra 
Dr. Klaus Sturany, 
Supervisory Board
 
Shares 
 
DE000BAY0017 
 
Purchase
 
EUR 76.12
 
534
 
EUR 40,648.35
March 5, 2013 /  
Xetra 
Dr. Helmut Panke, 
Supervisory Board
 
Shares 
 
DE000BAY0017 
 
Purchase
 
EUR 76.12
 
267
 
EUR 20,324.17 
March 5, 2013 /  
Xetra 
Prof. Dr. Ernst-Ludwig 
Winnacker, 
Supervisory Board
 
 
Shares 
 
 
DE000BAY0017 
 
 
Purchase
 
 
EUR 76.12
 
 
267
 
 
EUR 20,324.17
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Bayer Annual Report 2013
18. Corporate Governance Report
18.2 Governance
Common values and leadership principles
Bayer has committed itself to the values of Leadership, Integrity, Flexibility and Efficiency, or “LIFE” for 
short. These values provide guidance to all Bayer employees, both in business dealings and in working 
together within the company. All employees are obligated to align their work to the LIFE ­values. This is 
taken into account in human resources development and the regular performance evaluations.
Systematic risk management
The established internal control system enables the company to identify any business or financial risks  
at an early stage and take appropriate action to manage them. This control system is designed to ensure 
that risks are monitored in a timely manner, all business transactions are properly accounted for, and 
­reliable data on the company’s financial position is always available.
When acquisitions are made, we aim to bring the acquired units’ internal control systems into line with 
those of the Bayer Group as quickly as possible.
However, the control and risk management system cannot provide absolute protection against losses 
arising from business risks or fraudulent actions.
Detailed reporting
To maximize transparency, we provide regular and timely information on the Group’s position and sig-
nificant changes in business activities to stockholders, financial analysts, stockholders’ associations, 
the media and the general public. Bayer complies with the recommendations of the Corporate Gover-
nance Code by publishing reports on business trends, financial position, results of operations and 
­related risks four times a year.
In line with statutory requirements, the members of the Group Management Board provide an assur-
ance that, to the best of their knowledge, the financial statements of Bayer AG, the consolidated finan-
cial statements of the Bayer Group and the combined management report provide a true and fair view. 
The financial statements of Bayer AG, the consolidated financial statements of the Bayer Group and 
the combined management report are published within 90 days following the end of each fiscal year. 
During the fiscal year, stockholders and other interested parties are kept informed of developments by 
means of the half-year financial report and additional interim reports for the first and third quarters. 
The half-year financial report is voluntarily subjected to an audit review by the auditor, whose appoint-
ment by the Annual Stockholders’ Meeting also relates specifically to this audit review.
Bayer also provides information at news conferences and analysts’ meetings. In addition, the company 
uses the internet as a platform for timely disclosure of information, including details of the dates of ma-
jor publications and events, such as the annual report, quarterly financial reports (Stockholders‘ News-
letters) or the Annual Stockholders’ Meeting.
In line with the principle of fair disclosure, all stockholders and other principal target groups are treated 
equally as regards the communication of valuation-relevant information. All significant new facts are 
­disclosed immediately to the general public. Stockholders also have immediate access to the information 
that Bayer publishes locally in compliance with the stock market regulations of various countries.
In addition to our regular reporting, we issue ad-hoc statements on developments that otherwise might 
not become publicly known but have the potential to materially affect the price of Bayer stock.
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18. Corporate Governance Report
18.3 Compliance
18.3 Compliance
Bayer manages its business responsibly and in compliance with the statutory and regulatory requirements 
of the countries in which it operates.
We define compliance as legally and ethically impeccable conduct by all employees in their daily work – 
because the way they carry out their duties affects the company’s reputation. Bayer does not tolerate any 
violation of applicable laws, relevant codes of conduct or internal regulations.
The Board of Management is unreservedly committed to corporate compliance and Bayer will forgo any 
business transaction that would violate our compliance principles. These principles are enshrined in our 
Corporate Compliance Policy, which is available in 42 languages. This document details our commitment 
to fair competition, integrity in business dealings including zero tolerance of corruption, the principles 
of sustainability and product stewardship, the upholding of foreign trade laws and insider trading laws, 
the separation of business and private interests, proper record-keeping and transparent financial report-
ing, fair and respectful working conditions, and avoidance of all forms of discrimination. Every employee 
is required to immediately report any infringement of this policy (except in France where this require-
ment does not apply due to national law).
Managerial employees have a vital part to play in implementing the Corporate Compliance Policy. As 
role models, they must help to ensure that this important code of conduct is adhered to in practice. Man-
agers may lose their entitlement to variable compensation components and be subject to disciplinary 
measures if systematic violations of applicable law entailing loss or damage to Bayer have occurred in 
their sphere of responsibility and could have been prevented if they had taken appropriate action. Com-
pliant and lawful conduct forms part of the performance evaluations of all managerial employees.
Bayer’s Corporate Auditing department regularly verifies adherence to the Corporate Compliance Poli-
cy. In 2013, 205 audits, including 52 compliance audits, were performed on the basis of a risk-oriented 
audit plan that takes potential corruption and other risks into account. Such audits were either preven-
tive or incident-related. Observance of the Corporate Compliance Policy is also a focus of all regular 
­audits. The head of Corporate Auditing regularly attends the meetings of the Audit Committee of the 
Supervisory Board and provides it with a list of conducted audits and their outcomes at least once a year.
The head of the Bayer Group’s compliance organization is the Group Compliance Officer, who reports 
­directly to the Chairman of the Board of Management. The Group Compliance Officer reports regularly 
to the Audit Committee of the Supervisory Board on any confirmed compliance violations. The sub-
groups and service companies each have their own compliance officer, who is responsible for ensuring 
that the respective subgroup or company adheres to Group-wide standards and any further subgroup- or 
industry-specific standards that may apply. Operational coordination of Group-wide compliance activi-
ties is the task of the central Compliance Department, which was expanded in 2013. There are central 
Compliance Officers in 35 countries and country groups, supported where necessary by further compli-
ance functions. Their role is to advise employees on lawful and ethically correct behavior in business-­
related situations.
The compliance organization operates in accordance with international standards such as the OECD 
­Recommendations of the Council for Further Combating Bribery of Foreign Public Officials in Interna-
tional Business Transactions.
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18.3 Compliance
Compliance is crucial to the success of our business. In 2013 Bayer adopted a Group-wide Compliance 
Charter to integrate compliance even more closely into all operating units and their work processes 
with the aim of making the compliance organization an even stronger partner for our operational busi-
ness. The priority is to prevent compliance violations from occurring. Extensive communication and 
training activities are designed to help employees develop a permanent awareness of compliance is-
sues and the associated risks.
 Online annex: 3-18.3-1
Through our extensive training activities on specific aspects of compliance, we aim to ensure  
employees are permanently aware of the meaning of compliance, its importance for Bayer, and how 
they can avoid inadvertently violating compliance principles.
The web-based training program on the Corporate Compliance Policy is an integral part of the official 
onboarding process for new managers. They are requested to take this training within three months 
of becoming a manager or joining Bayer. In 2013 it was taken by 2,800 managers, which was about 
50% of the ­managers newly hired or appointed during the year.
The web-based training program entitled “Anti-Corruption” has been translated into 10 languages 
and adapted for different media formats. It is already available in 78 countries and has been completed 
by some 55,000 employees, or about 48% of the total workforce.
At the same time, the HealthCare subgroup has developed a separate online training program relating 
to the compliance manuals for pharmaceutical products and medical devices to provide preventive 
training about specific compliance risks. These training modules outline the basic rules for responsible 
and ethically correct dealings with members of the medical professions, the promotion of HealthCare 
products, non-reciprocal benefits, and the exchange of services with people working in the health 
care sector and at medical facilities.
In 2013 we again ran an extensive communication campaign about compliance aimed at providing  
all employees with further information, explaining who is now available to advise them under the new 
business partnering concept, and raising awareness for compliance-critical situations. A quarterly 
newsletter for employees is published on the compliance intranet site.­
Bayer’s intranet site and internal print media reported widely on the new mandatory web-based 
 anti-corruption training program, the setting-up of a new email address for employees’ questions  
relating to compliance, the Compliance Charter, the tasks and structure of the new central global 
compliance organization, and the new ICM@bayer project. ICM stands for Integrated Compliance 
Management, a new Group-wide system through which the systematic, risk-based approach to the 
identification of compliance risks is to be developed further and mapped in a closed management 
system. The goal is to move away from an event-driven approach to a preventive one.
Since 2012 Bayer has used short videos depicting typical compliance-critical situations as an addi-
tional communication tool. Employees can view these on the compliance website. The films currently 
available focus on anti-corruption, conflicts of interest and equal opportunities for everyone and show 
typical key compliance scenarios.
Compliance was also a focus of communication and training activities at the subgroups and service 
companies in 2013.
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18.4 Compensation Report
We have established hotlines worldwide through which compliance violations can be reported. This 
can also be done anonymously. In 2013 the compliance organization registered 72 reports via the cen-
tral compliance hotline and email address. Of these, 20 were from Germany and 52 from other coun-
tries; 58 reports were received by email (24 of them anonymously), 12 by telephone (10 anonymously) 
and 2 anonymously by regular mail. Suspected compliance violations may also be reported to the Com-
pliance Officers, to Bayer’s Corporate Auditing Department or via local hotlines set up by the country 
organizations. All suspected compliance violations in the Group are recorded according to uniform cri-
teria and processed according to the rules set forth in the Directive on the Management of Compliance 
Incidents.
18.4 Compensation Report
The Compensation Report describes the essential features of the compensation system for the members 
of the Board of Management and the Supervisory Board and explains the compensation of the individual 
members. The report conforms to the requirements of the German Commercial Code including the 
­principles of German Accounting Standard No. 17 (DRS 17). It also complies with the recommendations of 
the German Corporate Governance Code and the International Financial Reporting Standards (IFRS). 
18.4.1 Compensation of the Board of Management
Objectives 
The structure of the compensation system for the Board of Management of Bayer AG is aimed at ensuring 
performance-oriented corporate governance and a long-term increase in the company’s value. The core 
­elements of the system include fixed compensation, which takes into account the tasks and duties of the 
Board of Management members, and an incentivized component – the short-term incentive (STI) –, which 
depends on the attainment of the annual corporate performance targets. In addition to the compensation 
directly related to each year of service, there are two long-term stock-based components that are directly 
related to the development of Bayer’s share price over time and thus are intended to create an incentive for 
a sustained commitment to the company. The system is also designed to enable the company to success-
fully compete for highly qualified executives and to ensure statutory and regulatory compliance. Board of 
Management compensation is in line with the basic principles of the compensation structure for manageri-
al employees in the Bayer Group. The appropriateness of the system and the compensation level are regu-
larly reviewed by the Supervisory Board, which then makes any necessary adjustments.
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* excluding fringe benefits and pension entitlements
Board of Management Compensation Structure (German Commercial Code) *
[Graphic 3.18.1]
~ 40%
Long-term variable  
compensation
~ 10% Aspire 
~ 30%
Fixed annual  
compensation
~ 30%
Short-term variable  
cash compensation  
(50% STI)
~ 30% Virtual shares 
(50% STI)
Compensation structure
The compensation paid to the members of the Board of Management includes both non-performance- 
related and performance-related components. The compensation structure, based on average total annu-
al compensation and 100% target attainment, is as follows:
 
The non-performance-related compensation comprises the fixed annual compensation along with fringe 
benefits. The performance-related compensation partly comprises a variable component (STI), of which 
50% takes the form of short-term variable cash compensation and 50% consists of long-term cash com-
pensation involving a grant of virtual Bayer shares that are retained for three years. The other perfor-
mance-related compensation component serving as a long-term incentive is the stock-based cash com-
pensation program Aspire. Here, a four-year retention period applies.
The individual performance-related components are capped at the grant date. To comply with the rec-
ommendation newly included in the 2013 version of the German Corporate Governance Code, caps have 
also been agreed for the disbursement of the performance-related components and for the compensa-
tion as a whole (total of the annual fixed compensation and the variable components) with effect from 
the fiscal year 2014. The cap on the total compensation is 1.8 times the respective target compensation 
and is determined annually when the fixed compensation is set.
The members of the Board of Management also receive pension entitlements for themselves and their 
surviving dependents.
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Non-performance-related components
Fixed annual compensation
The level of the non-performance-related, fixed annual compensation takes into account the functions 
and responsibilities assigned to the members of the Board of Management as well as market condi-
tions. The fixed compensation is regularly reviewed by the Supervisory Board in light of the consumer 
price indexes and adjusted if necessary. It is paid out in twelve monthly installments. 
Fringe benefits
This component mainly includes perquisites such as a company car with driver or the use of the 
­company carpool, payments toward the cost of security equipment, and the reimbursement of the cost 
of annual health screening examinations. Fringe benefits are reported at the value assigned to them 
for tax purposes.
Performance-related components
Short-term variable cash compensation
The short-term variable compensation (short-term incentive, or STI) is based on a set percentage of 
the fixed annual compensation (target value). This amount is adjusted according to the target attain-
ments of the Bayer Group, the subgroups and the individual Board of Management member. 
The Group component is determined in relation to core earnings per share of the Group, while the 
­subgroup components are governed by the weighted average target attainments of the HealthCare, 
CropScience and MaterialScience subgroups. The annual subgroup targets are derived from the re-
spective business strategies and operational priorities. The target attainment for HealthCare and Crop-
Science is mainly based on the comparison of target and actual values for the EBITDA margin before 
special items and sales growth. At MaterialScience it is measured in terms of the cash flow return on 
investment (CFROI). Target attainment also takes into account qualitative objectives including safety, 
compliance and sustainability aspects. 
The target attainment for the individual component of the variable compensation is determined by the 
Supervisory Board. One half of the STI for each year is paid out in the second quarter of the following 
year, while the other half is granted in the form of virtual Bayer shares. 
Short-Term Variable Compensation (STI) Components
[Graphic 3.18.2]
Subgroup 
component
Based on attainment of 
financial and qualitative targets 
by the three subgroups 
(weighted average)
Individual 
component
Based on individual 
performance
Group 
component
Based on Group target 
attainment (core earnings 
per share)
bayer
sti
1/ 3 of STI target value
1/ 3 of STI target value
1/ 3 of STI target value
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Long-term variable cash compensation based on virtual Bayer shares
Both the number of virtual shares granted and the amount of the payment at the end of a three-year 
­retention period are based on the average official closing price of Bayer shares over the last 30 trading 
days of the respective year in the Xetra system of the Frankfurt Stock Exchange. A cash payment with 
respect to the number of virtual shares held is made at the end of the three-year period according to the 
market price of Bayer shares at that time. In addition, the members of the Board of Management receive 
an amount equal to the total dividends paid on the equivalent number of real shares during the period. 
Payment is made in January of the year following the end of the three-year period. This payment is 
capped at 200% of the amount converted into virtual shares at the beginning of the three-year period. 
No option exists for the Board of Management members to extend the retention period or defer the 
­payout. When a member leaves the Board of Management, the retention period for two-thirds of each 
tranche is shortened to two years. If the member leaves during a fiscal year, payment is made immedi-
ately with respect to two-thirds of any tranche that has already been retained for more than two years. 
The remaining one-third of each tranche continues to be subject to the three-year retention period.
Long-term stock-based cash compensation (Aspire I)
Members of the Board of Management are eligible to participate in the annual tranches of the long-term 
stock-based compensation program Aspire I (“Aspire”) on condition that they purchase a certain number 
of Bayer shares – determined for each individual according to specific guidelines – as a personal invest-
ment and for as long as they continue in the service of the Bayer Group. The payments made under this 
program are based on the Aspire Target Opportunity, which is a contractually agreed percentage of fixed 
annual compensation. Depending on the performance of Bayer stock, both in absolute terms and relative 
to the EURO STOXX 50 benchmark index, participants are granted an award of between 0% and 300% of 
their individual Aspire Target Opportunity for four-year tranches, or between 0% and 200% for three-
year tranches, at the end of the respective performance period. The Aspire program was switched from 
three- to four-year tranches starting in 2010 to increase its long-term incentive effect. For the transition 
year 2010, a three-year half-tranche was issued in addition to the four-year tranche. Starting in 2011, 
only tranches with a four-year performance period have been issued. The performance matrix and the 
respective amounts of the awards depending on the absolute and relative performances of Bayer stock 
are explained at HTTP://WWW.INVESTOR.BAYER.COM/EN/STOCK/STOCK-PROGRAMS/ASPIRE.
When a member of the Board of Management retires, current tranches may be shortened. In this 
case, tranches up to the one issued in 2011 are shortened on a pro-rated basis according to the dura-
tion of the member’s active service on the Board of Management during the period of the tranche; 
tranches issued in 2012 or later are shortened according to the duration of the member’s active ser-
vice on the Board of Management during the first year of the tranche.
Tranches of the Aspire Program
[Graphic 3.18.3]
2012 – 2015
2011 – 2014
* three- and four-year tranches of the Aspire program were issued in 2010
2013 – 2016
2010
2011
2012
2013
2014
2015
2016
performance period
2010 – 2013 *
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Expanded Share Ownership Guidelines
On top of the requirement for participants in the Aspire program to make a personal investment in 
Bayer shares, the members of the Board of Management have undertaken to comply with expanded 
Share Ownership Guidelines. These require the Chairman of the Board of Management to build a posi-
tion in Bayer shares to the value of 150% of his fixed annual compensation, and the other members to 
the value of 100% of their fixed annual salaries, within four years and to continue to hold them for as 
long as they remain Board of Management members. Half the number of virtual shares granted to 
them through conversion of 50% of the STI into virtual shares counts toward this position. The Board 
of Management members must provide documentary evidence of their compliance with this obligation 
for the first time at the end of the four-year position-building period and again yearly thereafter. In the 
event of significant changes in fixed annual compensation, the value to which shares are held must be 
adjusted accordingly. 
Pension entitlements (retirement and surviving dependents‘ pensions)
The members of the Board of Management appointed prior to 2013 are generally entitled to receive a 
lifelong company pension after leaving the Bayer Group, though not before the age of 60. This pension 
is normally paid out in the form of a monthly life annuity. Dr. Dekkers has the option to receive a capital 
sum in place of an annuity.
The annual pension granted equals at least 15% of final fixed annual compensation. This percentage 
can increase with continuing service on the Board of Management up to a maximum of 60%, except in 
the case of a member appointed prior to 2006, who is entitled to a pension of up to 80% of his final fixed 
annual compensation. The arrangements for surviving dependents basically provide for a widow’s pen-
sion amounting to 60% of the member’s pension entitlement and an orphan’s pension amounting to 
15% of the member’s pension entitlement for each child. 
Future pension payments are annually reviewed and adjusted based on the development of consumer 
prices. Pension rights are suspended if a Management Board member works for a competitor of 
­Bayer AG or of another Group company before the age of 65 without the prior written consent of the 
­Supervisory Board. 
The annual pension entitlement for members of the Board of Management appointed in 2013 or there­
after is based on contributions. Bayer provides a hypothetical contribution amounting to 33% of the 
­respective fixed compensation each year. This percentage is comprised of a 6% basic contribution and a 
27% matching contribution – three times the member’s personal contribution of 9%. The total annual 
contribution is converted into a pension module according to the annuity table for the applicable tariff of 
the Rheinische Pensionskasse VVaG pension fund. The annual pension entitlement upon retirement  
(at 62 years of age at the earliest) is the total amount of the accumulated pension modules including an 
investment bonus. The investment bonus is determined annually based on the net return on the assets of 
the Rheinische Pensionskasse VVaG minus the minimum return on the contributions that is guaranteed 
under the tariff and approved by the German Financial Supervisory Authority. 
The ultimate pension entitlement cannot be precisely determined in advance. It depends on the develop-
ment of the member’s compensation, the number of years of service on the Board of Management and 
the return on the assets of the Rheinische Pensionskasse VVaG. We currently estimate the achievable 
­total pension entitlement at approximately 45% of a member’s annual fixed compensation immediately 
prior to retirement, with roughly 38% financed by the company and 7% by the member of the Board of 
Management.
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Benefits upon termination of service on the Board of Management
Post-contractual non-compete agreements 
Post-contractual non-compete agreements exist with the members of the Board of Management, provid-
ing for compensatory payments to be made by the company for the two-year duration of these agree-
ments. For the members newly appointed to the Board of Management on or after January 1, 2010, the 
compensatory payment is 100% of the average fixed compensation for the twelve months preceding 
their departure.  
Change of control
Agreements exist with the members of the Board of Management providing for severance payments to 
be made in certain circumstances in the event of a change in control. The amount of any possible sever-
ance payments in the case of early termination of service on the Board of Management as a result of a 
change in control is limited to the value of three years’ compensation in line with the recommendation in 
Section 4.2.3 of the German Corporate Governance Code. Such payments do not exceed the compensa-
tion payable for the remaining term of the service contract. 
Unfitness for work
In the event of temporary unfitness for work, members of the Board of Management continue to receive 
the contractually agreed compensation. Bayer AG may early terminate the service contract if the mem-
ber has been continuously unfit for work for at least 18 months and is likely to be permanently incapable 
of fully performing his duties (permanent incapacity to work). A disability pension is paid in the event of 
contract termination before the age of 60 due to permanent incapacity to work. For the members ap-
pointed to the Board of Management prior to 2013, the disability pension, like the retirement pension, 
amounts to at least 15% of the final fixed compensation and can increase with continuing service on the 
Board of Management up to a maximum of 60%. For members of the Board of Management appointed 
in 2013 or thereafter, the amount of the disability pension under the service contract corresponds to the 
entitlement accrued on the date of contract termination, taking into account a fictitious period of service 
between that date and the member’s 55th birthday where applicable.
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Compensation of the Board of Management in 2013
The aggregate compensation of the members of the Board of Management in 2013 totaled €13,563 thou-
sand (2012: €12,997 thousand), comprising €3,956 thousand (2012: €3,541 thousand) in non-perfor-
mance-related components and €9,607 thousand (2012: €9,456 thousand) in performance-related 
­components. The pension service cost amounted to €1,271 thousand (2012: €1,861 thousand). The perfor-
mance-related components in 2013 included an additional one-time variable component for Prof. Plischke 
with a target value of €500 thousand, the exact amount of this payment depending on the target attainment 
of the HealthCare subgroup (in terms of the EBITDA margin before special items and sales growth). It re-
lates to the additional function as head of the HealthCare subgroup that was temporarily assigned to him 
and to a subsequent period covering the necessary handover to his successor in this function. This one-
time payment, amounting to €771 thousand, does not form part of his pensionable income.
The following changes in the membership of the Board of Management took place in 2013: effective April 
1, 2013, Mr. König was appointed to the Board of Management of Bayer AG. Effective June 1, 2013, he 
succeeded Dr. Pott, who retired as of that date. 
The following table shows the compensation components of the individual members of the Board of 
­Management in 2013: 
Fixed annual compensation
The fixed compensation of the members of the Board of Management was adjusted in 2013. The total 
fixed compensation of all the members was €3,774 thousand (2012: €3,394 thousand).
Board of Management Compensation (German Commercial Code)
[Table 3.18.2] 
Fixed Annual 
Compensation 
 
 
Fringe  
Benefits 
 
 
Short-term 
Variable Cash 
Compensation 
 
Long-term Variable Cash  
Compensation Based on  
Virtual Bayer Shares 1 
 
Long-term 
Stock-based 
Cash  
Compensation 
(Aspire) 2
Aggregate 
Compensation 
 
 
Pension  
Service Cost 3 
 
 
 
2012
2013
2012
2013
2012
2013
2012
2012
2013
2013
2012
2013
2012
2013
2012
2013
€ thou­
sand
€ thou­
sand
€ thou­
sand
€ thou­
sand
€ thou­
sand
€ thou­
sand
No. of 
shares 4 
€ thou­
sand
No. of 
shares 4
€ thou­
sand
€ thou­
sand
€ thou­
sand
€ thou­
sand
€ thou­
sand
€ thou­
sand
€ thou­
sand
Dr. Marijn 
Dekkers 
(Chairman)
 
 
1,271
 
 
1,347
 
 
35
 
 
39
 
 
1,702
 
 
1,532
 
 
24,228
 
 
1,702
 
 
15,802
 
 
1,532
 
 
352
 
 
382
 
 
5,062
 
 
4,832
 
 
561
 
 
677
Werner  
Baumann
 
783
 
888
 
44
 
43
 
979
 
881
 
13,928
 
979
 
9,085
 
881
 
186
 
252
 
2,971
 
2,945
 
1,056
 
189
Prof. Dr.  
Wolfgang 
Plischke 5
 
 
670
 
 
710
 
 
34
 
 
35
 
 
783
 
 
1,476
 
 
11,701
 
 
822
 
 
7,631
 
 
740
 
 
186
 
 
201
 
 
2,495
 
 
3,162
 
 
5
 
 
6
Michael König 
­–
533
­–
51
0
529
­–
­–
5,451
529
­–
­–
­–
1,642
­–
120
Dr. Richard 
Pott
 
670
 
296
 
34
 
14
 
783
 
294
 
11,329
 
796
 
3,028
 
294
 
186
 
84
 
2,469
 
982
 
239
 
279
Total
3,394
3,774
147
182
4,247
4,712
61,186
4,299
40,997
3,976
910
919
12,997
13,563
1,861
1,271
1	fair value at conversion date 
2	fair value at grant date
3	including company contribution to Bayer-Pensionskasse VVaG
4	In return for their acceptance of the early change made to the system of variable cash compensation in 2010, Prof. Plischke and Dr. Pott since 2010 have received one  
additional virtual Bayer share for every 20 virtual Bayer shares resulting from the conversion of 50% of the STI into virtual Bayer shares. This arrangement no longer  
applies to Dr. Pott under his new service contract effective May 1, 2012.
5	The short-term variable cash compensation total for Prof. Plischke includes the additional one-time variable payment made to him of €771 thousand.
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Short-term variable cash compensation
The total short-term variable cash compensation (short-term portion of the STI) for all the members of the 
Board of Management in 2013 totaled €4,712 thousand (2012: €4,247 thousand) after deduction of the soli-
darity contribution and including the additional variable one-time payment for Prof. Plischke. The solidari-
ty contribution is paid by all employees of the companies covered by the respective agreements with the 
employee representatives to help safeguard jobs at the German sites. For 2013 this contribution amounted 
to 0.47% (2012: 0.67%) of each member’s total STI award. 
Long-term variable cash compensation based on virtual Bayer shares
The conversion of 50% of the STI into virtual Bayer shares was based on an average price of €96.96 (2012: 
€70.26). Prof. Plischke and Dr. Pott each received one additional virtual Bayer share for every 20 virtual 
Bayer shares resulting from the conversion in return for their acceptance of the early change made to the 
system of variable cash compensation in 2010. This applies for the duration of the service contract in effect 
at that time. The additional virtual shares are subject to the same retention period and therefore to the 
same change in value. This arrangement no longer applied to Dr. Pott under his new service contract that 
became effective May 1, 2012. The retention period for some of Dr. Pott’s virtual shares was shortened 
pursuant to his service contract upon his retirement. He therefore received a first payment in June 2013.
The long-term variable cash compensation based on virtual Bayer shares that is included in the aggregate 
compensation according to the German Commercial Code was valued at €3,976 thousand (2012: 
€4,299 thousand). The aggregate compensation according to the IFRS also includes a change of 
€5,030 thousand (2012: €3,136 thousand) in the value of existing entitlements.
Provisions of €18,310 thousand (2012: €13,222 thousand) existed as of December 31, 2013, for the future 
cash disbursements to currently serving members of the Board of Management based on the virtual Bayer 
shares granted in the respective year. This amount also contains the dividend attributable to the respective 
prior year.
Long-term stock-based cash compensation (Aspire)
The long-term stock-based cash compensation under the Aspire program is included in the aggregate 
compensation according to the German Commercial Code at its fair value of €919 thousand (2012: 
€910 thousand) at the grant date. 
According to the IFRS, the aggregate compensation includes the fair value of the partial entitlement 
earned in the respective year. Grants of stock-based compensation with a four-year performance period 
are therefore expensed at their respective fair values over four years starting with the grant year. The 
­aggregate compensation according to the IFRS also includes the change in the value of existing entitle-
ments under ongoing Aspire tranches granted in prior years. 
Provisions of €6,813 thousand (2012: €3,793 thousand) existed as of December 31, 2013, for the entitle-
ments of the currently serving members of the Board of Management under the Aspire program.
Board of Management Compensation – Aspire Program (IFRS)
[Table 3.18.3]
 
 
Dr. Marijn 
Dekkers 
(Chairman)
Werner 
Baumann 
Prof. Dr. 
Wolfgang 
Plischke
Michael 
König 
Dr. Richard 
Pott 
Total 
 
 
 
€ thousand
€ thousand
€ thousand
€ thousand
€ thousand
€ thousand
Stock-based compensation entitle-
ments earned in the respective year 1
2013
1,115
679
651
141
339
2,925
2012
535
322
406
–
744
2,007
Change in value of existing  
entitlements 2
2013
703
444
444
87
634
2,312
2012
306
214
338
–
338
1,196
Total 
2013
1,818
1,123
1,095
228
973
5,237
2012
841
536
744
–
1,082
3,203
1	 The newly earned entitlements are derived from the  2010, 2011, 2012 and 2013 tranches of the Aspire program because this compensation 
was or is being earned over three- or four-year periods. They are stated at their pro-rated fair values in 2012 and 2013, respectively.
2 	This line shows the change in the value of the entitlements already earned in 2010, 2011 and 2012 (2012: 2010 and 2011).
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Pension entitlements
The pension service cost recognized for the members of the Board of Management in 2013 according 
to the German Commercial Code was €1,271 thousand (2012: €1,861 thousand), while the current 
service cost for pension entitlements recognized according to the IFRS was €1,805 thousand (2012: 
€2,501 thousand).
The service costs and the settlement or present value of the pension obligations attributable to the indi-
vidual members of the Board of Management are shown in the following table.
The difference between the pension service cost according to the German Commercial Code and the 
service cost for pension entitlements according to the IFRS arises from the difference in the valuation 
principles used in calculating the settlement value according to the German Commercial Code and the 
present value of the defined pension benefit obligation according to the IFRS.
In 2012 a contribution was made to Bayer Pension Trust e.V. under a contractual trust arrangement 
(CTA) to cover direct pension commitments, resulting in a substantial additional security for all direct 
pension commitments in Germany. In particular, this means that pension commitments not covered by 
the German Corporate Pension Assurance Association (PSV) are fully and permanently secured. This 
includes pension commitments toward members of the Board of Management. 
The aggregate compensation according to the IFRS is shown in the following table:
Pension Entitlements (German Commercial Code and IFRS)
[Table 3.18.4]
German Commercial Code
IFRS
Pension service cost 1 
 
Settlement value  
of pension obligation  
as of December 31
Service cost for  
pension entitlements 
Present value of defined 
benefit pension obli­ga- 
tion as of December 31
 
2012
2013
2012
2013
2012
2013
2012
2013
 
€ thousand
€ thousand
€ thousand
€ thousand
€ thousand
€ thousand
€ thousand
€ thousand
Dr. Marijn Dekkers 
561
677
4,354
5,451
637
960
6,282
6,684
Werner Baumann
1,056
189
4,379
4,936
1,600
291
6,888
6,354
Prof. Dr.  
Wolfgang Plischke
 
5
 
6
 
7,512
 
7,621
 
0
 
0
 
9,556
 
8,716
Michael König
–
120
–
1,327
–
185
–
1,719
Dr. Richard Pott
239
279
8,074
0
264
369
10,722
0
Total
1,861
1,271
24,319
19,335
2,501
1,805
33,448
23,473
1	including company contribution to Bayer-Pensionskasse VVaG
Board of Management Compensation according to IFRS
[Table 3.18.5]
 
2012
2013
 
€ thousand
€ thousand
Fixed annual compensation
3,394
3,774
Fringe benefits
147
182
Total short-term non-performance-related compensation
3,541
3,956
Short-term performance-related cash compensation
4,247
4,712
Total short-term compensation
7,788
8,668
Stock-based compensation (virtual Bayer shares) earned in the respective year
4,299
3,976
Change in value of existing entitlements to stock-based compensation (virtual Bayer shares)
3,136
5,030
Stock-based compensation (Aspire) earned in the respective year
2,007
2,925
Change in value of existing entitlements to stock-based compensation (Aspire)
1,196
2,312
Total stock-based compensation (long-term incentive)
10,638
14,243
Service cost for pension entitlements earned in the respective year
2,501
1,805
Total long-term compensation
13,139
16,048
Aggregate compensation (IFRS)
20,927
24,716
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203
Combined Management Report
Combined Management Report
Bayer Annual Report 2013
Bayer Annual Report 2013
18. Corporate Governance Report
18.4 Compensation Report
18. Corporate Governance Report
18.4 Compensation Report
18.4.2 Disclosures Pursuant to the Recommendations  
of the German Corporate Governance Code
The following table lists the compensation and fringe benefits paid for 2013, including the maximum 
and minimum achievable variable compensation, in line with the recommendations in the May 2013 
version of the German Corporate Governance Code.
Compensation and Benefits Granted for 2013
[Table 3.18.6]
Dr. Marijn Dekkers  
(Chairman) 
Werner Baumann 
(Finance) 
Prof. Dr. Wolfgang Plischke1 
(Technology, Innovation,  
Sustainability)
Michael König2 
(Human Resources) 
Dr. Richard Pott1 
(Strategy, Human Resources) 
Joined Jan. 1, 2010
Joined Jan. 1, 2010
Joined March 1, 2006
Joined April 1, 2013
Stepped down June 1, 2013
 
Target 
value 
2012
Target 
value 
2013
 
Min.
2013
 
Max.3 
2013
Target 
value 
2012
Target 
value 
2013
 
Min.
2013
 
Max.3 
2013
Target 
value 
2012
Target 
value 
2013
 
Min.
2013
 
Max.3 
2013
Target 
value 
2012
Target 
value 
2013
 
Min.
2013
 
Max.3 
2013
Target 
value 
2012
Target 
value 
2013
 
Min.
2013
 
Max.3 
2013
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
Fixed annual compensation
1,271
1,347
1,347
1,347
783
888
888
888
 
670
710
710
710
– 
533
533
533
670
296
296
296
Fringe benefits
35
39
39
39
44
43
43
43
 
34
35
35
35
– 
51
51
51
34
14
14
14
Total annual fixed compensation
1,306
1,386
1,386
1,386
827
931
931
931
 
704
745
745
745
– 
584
584
584
704
310
310
310
Short-term variable cash compensation  
(50% of STI)
 
1,420
 
1,448
 
0 
 
2,896
 
816
 
833
 
0
 
1,665
 
 
653
 
666
 
0
 
1,332
 
– 
 
500
 
–
 
999
 
653
 
278
 
0
 
555
Long-term stock-based compensation  
(Aspire) 2012 (Jan. 1, 2012 – Dec. 31, 2015) 4
 
498
 
– 
 
– 
 
– 
 
263
 
– 
 
– 
 
– 
  
 
263
 
– 
 
– 
 
– 
 
– 
 
– 
 
– 
 
– 
 
263
 
– 
 
– 
 
– 
Long-term stock-based compensation  
(Aspire) 2013 (Jan. 1, 2013 – Dec. 31, 2016) 4
 
– 
 
539
 
0
 
1,617
 
– 
 
355
 
0 
 
1,066
  
 
– 
 
284
 
0
 
853
 
– 
 
93
 
–
 
278
 
– 
 
118
 
0
 
355
Long-term variable cash compensation  
(virtual Bayer shares) in 2012  
(Jan. 1, 2013 – Dec. 31, 2015) 5
 
 
1,420
 
 
– 
 
 
– 
 
 
– 
 
 
816
 
 
– 
 
 
– 
 
 
– 
  
 
 
 
686
 
 
– 
 
 
– 
 
 
– 
 
 
– 
 
 
– 
 
 
– 
 
 
– 
 
 
664
 
 
– 
 
 
– 
 
 
– 
Long-term variable cash compensation  
(virtual Bayer shares) in 2013  
(Jan. 1, 2014 – Dec. 31, 2016) 5
 
 
– 
 
 
1,448
 
 
0
 
 
5,793
 
 
– 
 
 
833
 
 
0
 
 
3,330
  
 
 
 
– 
 
 
699
 
 
0
 
 
2,797
 
 
– 
 
 
500
 
 
0 
 
 
1,998
 
 
– 
 
 
278
 
 
0
 
 
– 
HealthCare special bonus
– 
– 
– 
– 
– 
– 
– 
–   
– 
500
– 
1,500
– 
– 
– 
– 
– 
– 
– 
– 
Total compensation
4,644
4,821
1,386
11,692
2,722
2,952
931
6,992
 
2,306
2,894
745
7,227
– 
1,677
584
3,859
2,284
984
310
1,220
Service cost
561
677
677
677
1,056
189
189
189
 
5
6
6
6
– 
120
120
120
239
279
279
279
Total
5,205
5,498
2,063
12,369
3,778
3,141
1,120
7,181
 
2,311
2,900
751
7,233
– 
1,797
704
3,979
2,523
1,263
589
1,499
1	including any contractually agreed free shares in connection with the grant of virtual shares 
2	Benefits granted to Mr. König refer solely to compensation for his duties as a member of the Board of Management. The 2013 Aspire tranche  
was granted to him prior to his appointment to the Board of Management. Its vesting period extends past the date on which he joined the  
Board of Management. 
3	The caps applicable with effect from 2014 are not yet accounted for in the total of maximum achievable compensation. 
4	capped at 300%
5	capped at 200%
» TABLE OF CONTENTS COMBINED MANAGEMENT REPORT  
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Combined Management Report
Bayer Annual Report 2013
18. Corporate Governance Report
18.4 Compensation Report
Allocation of Compensation in / for 2012 and 2013
[Table 3.18.7]
Dr. Marijn Dekkers  
(Chairman) 
Werner Baumann 
(Finance) 
Prof. Dr.  
Wolfgang Plischke 
(Technology, Innova-
tion, Sustainability)
Michael König 
(Human Resources) 
Dr. Richard Pott 
(Strategy,  
Human Resources)
Joined  
Jan. 1, 2010
Joined  
Jan. 1, 2010
Joined  
March 1, 2006
Joined  
April 1, 2013
Stepped down  
June 1, 2013
 
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
Fixed annual compensation
1,271
1,347
783
888
670
710
–
533
670
296
Fringe benefits
35
39
44
43
34
35
–
51
34
14
Total
1,306
1,386
827
931
704
745
–
584
704
310
Short-term variable cash  
compensation for the period  
Jan. 1. – Dec. 31, 2011
 
 
1,420
 
 
– 
 
 
653
 
 
–
 
 
653
 
 
–
 
 
–
 
 
–
 
 
653
 
 
–
Short-term variable cash  
compensation for the period  
Jan. 1 – Dec. 31, 2012 
 
 
–
 
 
1,702
 
 
–
 
 
979
 
 
–
 
 
783
 
 
–
 
 
–
 
 
–
 
 
783
Long-term stock-based cash  
compensation (Aspire) 2009  
(Jan. 1, 2009 – Dec. 31, 2011)1
 
 
–
 
 
–
 
 
202
 
 
–
 
 
430
 
 
–
 
 
–
 
 
–
 
 
430
 
 
–
Long-term stock-based cash  
compensation (Aspire) 2010  
(Jan. 1, 2010 – Dec. 31, 2012)
 
 
–
 
 
–
 
 
–
 
 
–
 
 
–
 
 
253
 
 
–
 
 
–
 
 
–
 
 
253
Advance payment of 2 / 3 of  
long-term cash compensation  
(virtual Bayer shares) 2010  
(Jan. 1, 2011 – Dec. 31, 2013)
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
587
Total
2,726
3,088
1,682
1,910
1,787
1,781
–
584
1,787
1,933
Service cost / benefit expense
561
677
1,056
189
5
6
–
120
239
279
Total compensation
3,287
3,765
2,738
2,099
1,792
1,787
–
704
2,026
2,212
1	The payment to Mr. Baumann from the 2009 Aspire tranche applied to a vesting period that began before he joined the Board of Management.  
The tranche was not yet fully vested at the date on which he joined the Board of Management.
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Combined Management Report
Bayer Annual Report 2013
18. Corporate Governance Report
18.4 Compensation Report
18.4.3 Compensation of the Supervisory Board
The Supervisory Board is compensated according to the relevant provisions of the Articles of Incorpora-
tion, which were amended effective April 28, 2012 by resolution of the Annual Stockholders’ Meeting held 
on April 27, 2012. 
Supervisory Board compensation system effective April 28, 2012
The members of the Supervisory Board receive fixed annual compensation of €120,000 plus reim-
bursement of their expenses. 
In accordance with the recommendations of the German Corporate Governance Code, additional com-
pensation is paid to the Chairman and Vice Chairman of the Supervisory Board and for chairing and 
membership of committees. The Chairman of the Supervisory Board receives fixed annual compensa-
tion of €360,000, the Vice Chairman €240,000. These amounts also cover membership and chairman-
ship of committees. The other members receive additional compensation for committee membership. 
The chairman of the Audit Committee receives an additional €120,000, the other members of the Audit 
Committee €60,000 each. The chairmen of the remaining committees receive €60,000 each, the other 
members of those committees €30,000 each. No additional compensation is paid for membership of the 
Nominations Committee. A Supervisory Board member who is a member of more than two committees 
receives compensation only for the two committees with the highest compensation. If changes are 
made to the Supervisory Board and/or its committees during the year, members receive compensation 
on a pro-rated basis. The members of the Supervisory Board also receive an attendance fee of €1,000 
each time they personally attend a meeting of the Supervisory Board or a committee. The attendance 
fee is limited to €1,000 per day.
The members of the Supervisory Board have given a voluntary pledge that they will each purchase 
Bayer shares for 25% of their fixed compensation, including any compensation for committee mem-
bership (before taxes), and hold these shares for as long as they remain members of the Supervisory 
Board. This does not apply to members who transfer at least 85% of their fixed compensation to the 
Hans Böckler Foundation in accordance with the rules of the German Trade Union Confederation or 
whose service or employment contract with a company requires them to transfer such compensation 
to that company. If less than 85% of the fixed compensation is transferred, the voluntary pledge ap-
plies to the portion not transferred. By voluntarily pledging to invest in and hold Bayer shares, the 
­Supervisory Board members reinforce their interest in the long-term, sustainable success of the com-
pany. With respect to the fiscal year 2012, the voluntary pledge applies to the fixed compensation paid 
for the period from April 28, 2012.
Supervisory Board compensation system until April 27, 2012
Until April 27, 2012, the compensation of the Supervisory Board was based on the relevant provisions 
of the Articles of Incorporation decided by the Annual Stockholders’ Meeting on April 29, 2005. Each 
member of the Supervisory Board received fixed annual compensation of €60,000 plus reimbursement of 
their expenses and a variable annual compensation component. The variable component was based on 
corporate performance in terms of the gross cash flow reported in the consolidated financial statements of 
the Bayer Group for the respective fiscal year. The members of the Supervisory Board received €2,000 for 
every €50 million or part thereof by which the gross cash flow exceeded €3.1 billion, but the variable com-
ponent for each member could not exceed €30,000. 
In accordance with the recommendations of the German Corporate Governance Code, additional com-
pensation was paid to the Chairman and Vice Chairman of the Supervisory Board and for chairing and 
membership of committees. The Chairman of the Supervisory Board received three times the basic 
compensation, while the Vice Chairman received one-and-a-half times the basic compensation. Mem-
bers of the Supervisory Board who were also members of a committee received an additional one quar-
ter of the amount, with those chairing a committee receiving a further quarter. However, no member of 
the Supervisory Board received total compensation exceeding three times the basic compensation. It 
was agreed that no additional compensation should be paid for membership of the Nominations Com-
mittee. If changes were made to the Supervisory Board or its committees during the fiscal year, mem-
bers received compensation on a pro-rated basis.  
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Combined Management Report
Bayer Annual Report 2013
18. Corporate Governance Report
18.4 Compensation Report
Compensation of the Supervisory Board in 2013
The following table shows the components of each Supervisory Board member’s compensation for 2013.  
Compensation of the Members of the Supervisory Board of Bayer AG in 2013
[Table 3.18.8]
Fixed  
Compensation 
Attendance  
Fee 
Variable 
Compensation 
Compensation 
for Committee 
Membership
Total 
 
 
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
€ thou- 
sand
Members of the Supervisory Board   
as of December 31, 2013
 
 
 
 
 
 
 
 
 
 
Dr. Paul Achleitner 
100
180
2
4
10
–
48
–
160
184
Dr. Clemens Börsig
100
120
3
4
10
–
–
–
113
124
André van Broich 
81
120
3
4
–
–
–
–
84
124
Thomas Ebeling 
81
120
2
4
–
–
–
–
83
124
Dr. Thomas Fischer 
100
180
4
8
10
–
48
–
162
188
Peter Hausmann
100
150
3
4
10
–
28
–
141
154
Reiner Hoffmann
100
180
3
8
10
–
41
–
154
188
Yüksel Karaaslan
81
120
2
4
–
–
–
–
83
124
Dr. Klaus Kleinfeld
100
120
1
4
10
–
–
–
111
124
Petra Kronen
100
150
4
3
10
–
28
–
142
153
Dr. Helmut Panke
100
120
2
3
10
–
–
–
112
123
Sue H. Rataj
81
120
2
3
–
–
–
–
83
123
Petra Reinbold-Knape
81
120
3
3
–
–
–
–
84
123
Michael Schmidt-Kiessling
81
120
2
4
–
–
–
–
83
124
Prof. Dr. Ekkehard D. Schulz
100
180
4
8
10
–
41
–
155
188
Dr. Klaus Sturany
100
240
4
8
10
–
96
–
210
248
Werner Wenning   
(Chairman effective October 1, 2012)
 
90
 
360
 
2
 
8
 
–
 
–
 
–
 
–
 
92
 
368
Thomas de Win (Vice Chairman)
192
240
4
7
15
–
14
–
225
247
Prof. Dr. Dr. Ernst-Ludwig Winnacker
100
120
2
4
10
–
–
–
112
124
Oliver Zühlke
100
150
4
4
10
–
20
–
135
154
 
 
 
 
 
 
 
 
 
 
 
Members who left the Supervisory 
Board during 2012
 
 
 
 
 
 
 
 
 
 
André Aich 
19
–
–
–
10
–
–
–
29
–
Willy Beumann
19
–
–
–
10
–
7
–
36
–
Prof. Dr. Hans-Olaf Henkel 
19
–
–
–
10
–
7
–
36
–
Hubertus Schmoldt 
19
–
–
–
10
–
7
–
36
–
Dr. Manfred Schneider  
(Chairman until September 30, 2012)  
 
211
 
–
 
3
 
–
 
29
 
–
 
–
 
–
 
243
 
–
Roswitha Süsselbeck 
19
–
–
–
10
–
–
–
29
–
Dr. Jürgen Weber 
19
–
–
–
10
–
7
–
36
–
*	Further details on the membership of the committees of the Supervisory Board are given under “Further Information,” page 337ff.
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Combined Management Report
Bayer Annual Report 2013
18. Corporate Governance Report
18.4 Compensation Report
In addition to their compensation as members of the Supervisory Board, those employee representatives 
who are employees of Bayer Group companies receive compensation unrelated to their service on the 
Supervisory Board. The total amount of such compensation in 2013 was €727 thousand (2012: 
€670 thousand).
No compensation was paid or benefits granted to members of the Supervisory Board for personally 
­performed services such as consultancy or agency services. The company has purchased insurance for 
the members of the Supervisory Board to cover their personal liability arising from their service on the 
Supervisory Board.
18.4.4 Further Information
Advances or loans to members of the Board of Management  
or Supervisory Board  
There were no advances or loans to members of the Board of Management or the Supervisory Board 
outstanding as of December 31, 2013, nor at any time during 2013 or 2012.
Pension payments to former members of the Board of Management  
or their surviving dependents
We currently pay retired members of the Board of Management a monthly pension equal to a maximum 
of 80% of the fixed compensation received immediately prior to retirement. The pensions of former 
members of the Board of Management or their surviving dependents have been reassessed annually 
since January 1, 2009 and adjusted taking into account the development of consumer prices. The pen-
sions paid to former members of the Board of Management or their surviving dependents in 2013 to-
taled €12,871 thousand (2012: €12,673 thousand). These benefits are in addition to any amounts they 
receive under previous employee pension arrangements. The present value of the pension obligation 
for former members of the Board of Management and their surviving dependents at the closing date 
amounted to €150,148 thousand (2012: €149,746 thousand) according to IFRS and €136,307 thousand 
(2012: €126,424 thousand) according to the German Commercial Code. 
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Combined Management Report
Bayer Annual Report 2013
19. Events After the End of the Reporting Period
Events After the End of the 
Reporting Period
19. Events After the End of the  
Reporting Period
On January 21, 2014, Bayer AG issued three tranches of bonds with a combined nominal volume of 
€2 billion under the multi-currency European Medium Term Notes program. 
HealthCare
On December 19, 2013, Bayer announced its intention to acquire the pharmaceutical company Algeta 
ASA, Norway. The formal takeover offer at a price of NOK 362 per share in cash was made to Algeta 
ASA shareholders on January 20, 2014. The offer, which implies an equity value of NOK 17.6 billion 
(€2.1 billion), is subject to a minimum acceptance level of 90% of the outstanding shares of Algeta 
ASA by the end of the offer period. The offer period expires at 9:00 a.m. Central European Time on 
February 24, 2014. If the offer is successful, payment to Algeta shareholders is to be made at the be-
ginning of March 2014.
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Combined Management Report
Bayer Annual Report 2013
20. Future Perspectives
20.1 Economic Outlook
Report on Future Perspectives 
and on Opportunities and Risks
20. Future Perspectives
20.1 Economic Outlook
Global economy
The global economy will probably grow more quickly in 2014 than in the previous year, with positive 
impetus coming mainly from the industrialized countries, especially the United States. At the same 
time, the European economy appears to have overcome the recession. The major central banks will 
likely continue to support global growth overall, although a cautious normalization of monetary poli-
cy is expected in the United States. 
We anticipate moderate growth in the European Union as a whole, supported in particular by the 
­relatively favorable economic situation in Germany and the United Kingdom. Some southern Euro­
pean countries, however, are likely to see only slight or even negative GDP growth. The economy will 
continue to be hampered by high unemployment and a lack of international competitiveness in some 
countries. 
The economic recovery in the United States is predicted to continue, buoyed by low energy prices, 
the recovery in the property market and other factors. 
We also expect the emerging countries to grow faster than in the previous year, mainly because their 
exports are likely to benefit from higher demand from the industrialized countries. China will proba-
bly remain among the principal drivers of global economic expansion in 2014, with growth matching 
the previous year.
Economic Outlook
[Table 3.20.1]
 
Growth * 2013
Growth forecast * 2014
World
+ 2.5%
+ 3.3%
European Union
+ 0.1%
+ 1.3%
of which Germany
+ 0.4%
+ 1.8%
United States
+ 1.9%
+ 2.7%
Emerging markets**
+ 4.7%
+ 5.3%
*		real growth of gross domestic product, source: Global Insight; source for Germany: Federal Statistical Office (2013) / Federal Ministry of 
Economics and Technology (2014) 
**	including about 50 countries defined by Global Insight as emerging markets in line with the World Bank
as of February 2014
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Combined Management Report
Bayer Annual Report 2013
20. Future Perspectives
20.1 Economic Outlook
HealthCare
The pharmaceuticals market is predicted to grow somewhat faster in 2014 than in the prior year. We 
expect a further increase in the demand for medicines in the emerging economies. Pharmaceutical 
sales will probably increase in the United States and a number of European countries, mainly due to 
the launch of new products – despite a persistently restrictive health policy environment.
Following the strong cold season in the previous year, the consumer care market will likely normalize 
and expand at a somewhat slower pace in 2014. We expect to see further slight shrinkage in the 
medical care market in 2014, with the diabetes care market weakening and the market for contrast 
agents and medical equipment (Radiology & Interventional business unit) almost reaching the previ-
ous year’s level. Growth in the animal health market in 2014 is forecasted to exceed the previous year 
in view of favorable economic prospects in important markets.  
CropScience
Following the dynamic growth in the global seed and crop protection market last year, we expect the 
market environment to remain favorable in 2014 but weaken over the course of the year. Price levels are 
expected to stay relatively high from a historical perspective, mainly in light of the steady rise in demand 
for food and feed products. However, prices for agricultural commodities are likely to be lower than in 
the previous year. As a result, the economic prospects for farmers will likely remain positive, encourag-
ing investment in high-value seed and crop protection products. However, it is also predicted that global 
inventories for most agricultural commodities will increase. We thus anticipate an overall growth rate in 
the mid-single digits in 2014, which would be lower than in the preceding year.   
We expect Latin America to continue experiencing the strongest growth. This region’s seed and crop 
protection market is mainly characterized by the steady expansion of soybean farming, which accounts 
for nearly 40% of the cultivated land area. In Asia / Pacific, too, we expect agricultural production to 
­continue expanding, though with markedly lower growth rates than in Latin America. The trend in this 
region will mainly depend on cereals and rice along with specialty crops such as fruit and vegetables.  
We see Eastern Europe and parts of Africa as further regions with above-average growth potential, albeit 
from relatively low levels. In the industrialized regions of the northern hemisphere, however, we ­expect 
markets to expand much more slowly than in 2013.
MaterialScience
We expect the business climate for our principal customer industries to improve during 2014. In North 
America there are clear stimuli to growth, raising hopes that the economy will continue to stabilize. 
­Distinct recovery trends are also apparent in the emerging economies of Asia. On the other hand, the 
economic recovery in Western Europe will likely progress at a slower pace, while the development in 
Latin America involves certain risks.
Economic Outlook for the Subgroups
[Table 3.20.2]
 
Growth *  
2013
Growth  forecast* 
2014
HealthCare
 
 
Pharmaceuticals market
+ 3%
+ 4%
Consumer Care market
+ 5%
+ 4%
Medical Care market
– 2%
– 2%
Animal Health market
+ 3%
+ 4%
CropScience
 
 
Seed and crop protection market
≥ 5%
≥ 5%
MaterialScience 
(main customer industries)
  
 
Automotive industry
+ 3%
+ 5%
Construction industry 
+ 3%
+ 4%
Electrical / electronics industry
+ 4%
+ 6%
Furniture market
+ 3%
+ 4%
*	Bayer’s estimate; excluding pharmaceuticals market, source: IMS Health. IMS Market Prognosis. Copyright 2014. All rights reserved;  
currency-adjusted; 2013 data provisional
as of February 2014
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We expect the automotive industry to develop positively in 2014, with the principal growth stimuli 
­coming from Asia and North America because of rising demand. The sector will post a slight expansion 
in Europe.
The global construction industry will probably continue to recover in 2014, mainly as a result of robust 
investment activity in North America and Asia. Continuing positive development in private housing con-
struction in the United States and stable investment in China and India are likely to contribute to this.
Robust growth is predicted for the global electrical / electronics industry in 2014. Demand is forecasted 
to grow briskly in nearly all market segments, mainly in Asia and especially in China. In Western Europe, 
however, we expect to see persistently weak growth due to the ongoing debt crisis.
We expect the development of the global furniture industry to show regional variations in 2014. The 
­demand for furniture in Europe as a whole will probably show only a slight increase, while there are 
signs that the market in North America will continue to recover. In Asia we expect to see stable growth.
20.2 Forecast for Key Data
The following forecast is based on the business development described in this report, taking into ac-
count the potential risks and opportunities.
Bayer Group
Our forecast for fiscal 2014 is based on average exchange rates for the fourth quarter of 2013, includ-
ing a rate of US$1.36 to the euro. A 1% appreciation (depreciation) of the euro against all other curren-
cies would decrease (increase) sales on an annual basis by some €260 million and EBITDA before special 
items by about €70 million.
In 2014 we plan to grow sales by about 5% on a currency- and portfolio-adjusted basis. Allowing for 
expected negative currency effects of about 2% compared to the previous year, Group sales would be 
approximately €41 billion to €42 billion. We plan to raise EBITDA before special items by a low- to 
mid-single-digit percentage, allowing for expected negative currency effects of about €450 million or 
roughly 5%. We aim to increase core earnings per share (calculated as explained in Chapter 16.3 “Core 
Earnings Per Share”) by a mid-single-digit percentage, allowing for expected negative currency effects 
of around 6%.  
 	See Chapter 16.3
Approx. 5% increase *  
Approx. €41 billion to €42 billion
Mid-single-digit percentage  
increase
 
Minus approx. 2%
Minus approx. 5% 
Minus approx. €450 million
 
Minus approx. 6%
*	 currency- and portfolio-adjusted
**	2014 calculated at Q4 2013 exchange rates compared to full year 2013 rates 
Group sales
Forecast 2014
Currency effects allowed for  
in the forecast  **
EBITDA before special items
Core earnings per share
Low- to mid-single-digit  
percentage increase
 
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We expect to take special charges of approximately €200 million for restructuring in 2014.  
 
We intend to increase our research and development expenses to €3.5 billion in 2014. We have  
planned capital expenditures of about €2.1 billion for property, plant and equipment and €0.3 billion 
for intangible ­assets. Depreciation and amortization are estimated at about €2.6 billion, including 
€1.3 billion in amortization of intangible assets.
We predict the financial result to come in at around minus €0.8 billion. The effective tax rate is likely  
to be around 25%. Taking into account the planned acquisition of Algeta ASA, Norway, we expect net 
financial debt to be below €9 billion at the end of 2014.
HealthCare
The main priority for HealthCare in 2014 continues to be the successful commercialization of the 
­recently launched pharmaceutical products. We expect sales to advance by a mid-single-digit percent-
age on a currency- and portfolio-adjusted basis. Allowing for expected negative currency effects of 
about 2%, sales would be approximately €19.5 billion to €20 billion. We predict EBITDA before special 
items to slightly exceed the prior-year level, allowing for negative currency effects of roughly 
€250 million. 
Capital Expenditure Budget 2014 by Subgroup	
[Graphic 3.20.2]
37% 
HealthCare
27%
CropScience
26% 
MaterialScience
10%
Reconciliation 
 
€2.4 billion
Research and Development Budget 2014 by Subgroup	
[Graphic 3.20.1]
65% 
HealthCare
26%
CropScience
6%
MaterialScience
3%
Reconciliation 
 
€3.5 billion
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In the Pharmaceuticals segment, we expect sales to move ahead by a high-single-digit percentage on a 
currency- and portfolio-adjusted basis. We predict negative currency effects of around 2% compared to 
2013. We intend to raise sales of our recently launched products to about €2.8 billion and are planning 
significantly higher investment in order to continue marketing them successfully. We will also intensify 
the activities aimed at exploiting the potential of our development pipeline. Additional marketing and 
R&D expenditures totaling €0.5 billion are planned for 2014. Against this background we expect a low-to 
mid-single-digit percentage increase in EBITDA before special items, allowing for negative currency 
effects of about €150 million. The EBITDA margin before special items is expected to be level with the 
previous year. 
In 2016 we plan to achieve an EBITDA margin before special items of at least 33%. We have increased 
our estimate for the peak sales potential of our recently launched products to at least €7.5 billion.
In the Consumer Health segment, we predict sales to rise by a low- to mid-single-digit percentage on a 
currency- and portfolio-adjusted basis. We anticipate negative currency effects of around 3% compared 
to 2013. We expect EBITDA before special items to come in slightly below the level of the prior year, 
­allowing for negative currency effects of about €100 million.
CropScience
For 2014 we continue to predict favorable market conditions for our CropScience business, although we 
will not see quite such a positive environment as in 2013.
We expect to grow faster than the market and raise sales by a mid- to high-single-digit percentage on  
a currency- and portfolio-adjusted basis. We anticipate negative currency effects of about 3% compared 
to 2013. We plan to increase EBITDA before special items by a low-single-digit percentage, allowing for 
negative currency effects of approximately €150 million.
MaterialScience
We plan to raise sales in 2014 by a mid-single-digit percentage on a currency- and portfolio-adjusted 
­basis. We predict negative currency effects of about 2% compared to 2013. We anticipate an increase in 
EBITDA before special items, allowing for negative currency effects of roughly €50 million.
For the first quarter of 2014, we expect sales to increase on a currency- and portfolio-adjusted basis 
against the prior-year period and EBITDA before special items to gain significantly.
Reconciliation
For 2014 we expect sales on a currency- and portfolio-adjusted basis to be level with the previous year. 
We are planning EBITDA before special items of roughly minus €0.2 billion.
Bayer AG
As the holding company for the Bayer Group, Bayer AG derives most of its income from its subsidiaries. 
The earnings of the major subsidiaries in Germany are transferred directly to Bayer AG under profit and 
loss transfer agreements. The earnings of Bayer AG are therefore expected to reflect the positive busi-
ness development anticipated in the Bayer Group. A concerted dividend policy within the Group ensures 
the availability of sufficient distributable income. We anticipate that the net interest position will remain 
steady in light of the continuing low level of interest rates. Based on these factors, we expect Bayer AG 
to report a distributable profit that will again enable our stockholders to adequately participate in the 
Bayer Group’s earnings.
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20.3 Opportunity and Risk Report
20.3.1 Group-wide Risk Management System
Corporate governance forms the basis for sustainable growth and economic success.  
One factor for corporate governance is the ability to systematically detect and take advantage  
of opportunities while identifying any risks to the company’s operations at an early stage.
The entrepreneurial decisions we make daily in the course of business processes are based on balanc-
ing opportunities and risks. We therefore regard risk management as an integral part of our business 
management system rather than the task of a specific organizational unit. The starting-point for our risk 
management is our strategy and planning processes, from which relevant external and internal opportu-
nities are derived and risks of an economic, ecological or social nature are identified. ­Opportunities and 
risks are identified by observing and analyzing trends along with macroeconomic, ­industry-specific, re-
gional and local developments. The identified opportunities and risks are subsequently incorporated 
into the subgroups’ strategic and operational planning. We attempt to avoid or mitigate risks by taking 
appropriate countermeasures, or to transfer them to third parties (such as ­insurers) to the extent possi-
ble and economically acceptable. We consciously accept and bear calculable and manageable risks 
commensurate with the anticipated opportunities. Opportunities and risks are continuously monitored 
using indicators so that changes in the economic or legal environment, for example, can be identified 
and suitable countermeasures initiated at an early stage if necessary. 
Opportunity  
management
	
   Risk management
 
Corporate Governance
Internal control and monitoring systems
Internal  
control ­system
(Process risks)
Compliance  
management 
system
(Compliance ­risks)
Risk early warning 
system 
(Risks that could endan-
ger the company’s  
continued existence)
Business processes
Process-independent monitoring
Strategic  
& planning 
processes
Identification   //   Evaluation   //   Management   //   Monitoring   //   Reporting
Corporate Governance
[Graphic 3.20.3]
//  Opportunity and risk management integral to Bayer’s Group-wide corporate  
governance system
//  No risks currently identified that could endanger the Bayer Group’s continued existence
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To enable the Board of Management and the Supervisory Board to monitor material business risks as 
­required by law, the following systems are also in place: an internal control system ensuring proper and 
effective financial reporting pursuant to Section 289 Paragraph 5 and Section 315 Paragraph 2 No. 5 of 
the German Commercial Code; a compliance management system; and a risk early warning system 
­pursuant to Section 91 Paragraph 2 of the German Stock Corporation Act. 
Differences exist among these management systems with regard to the processes, methods and IT sys-
tems used to identify, evaluate, manage, monitor and report risks depending on the type and level of risk 
and the time horizon. The principles underlying the various systems are documented in Group directives 
that are integrated into our central document control process (Margo) and accessible to all employees 
via the Bayer intranet. Depending on the system, responsibilities are assigned at the management level 
and coordinators are appointed in the subgroups, service companies and country companies and in the 
central functions of the Bayer Group. Overall responsibility for the effectiveness and appropriateness of 
the systems lies with the Chief Financial Officer.
The different systems are described below.
Internal control system for (Group) accounting and financial reporting
(report pursuant to Sections 289 Paragraph 5 and 315 Paragraph 2 No. 5 of the German  
Commercial Code)
Bayer has an internal control system (ICS) in place for the (Group) accounting and financial reporting 
process. This process comprises defined structures and workflows implemented throughout the organi-
zation. The purpose of our ICS is to ensure proper and effective accounting and financial reporting in 
accordance with Section 289 Paragraph 5 and Section 315 Paragraph 2 No. 5 of the German Commer-
cial Code. 
The ICS is designed to guarantee timely, uniform and accurate accounting for all business processes and 
transactions based on applicable statutory regulations, accounting and financial reporting standards and 
the internal Group directives that are binding upon all consolidated companies.  
The ICS is based on the COSO I (Committee of the Sponsoring Organizations of the Treadway Commis-
sion) and COBIT (Control Objectives for Information and Related Technology) frameworks and addresses 
misreporting risks in the consolidated financial statements. Risks are identified and evaluated, and steps 
are taken to counter them. Mandatory ICS standards such as system-based and manual reconciliation 
processes and functional separation have been derived from these frameworks and promulgated 
throughout the Group by the Group Accounting and Controlling unit of Bayer AG. 
The management of each Group company holds responsibility for implementing the ICS standards at the 
local level. Using the Group’s own shared service centers, the Group companies prepare their financial 
statements locally and transmit them with the aid of a data model that is standardized throughout the 
Group and based on the Group accounting directive. This ensures the regulatory compliance of the con-
solidated financial statements. 
The effectiveness of the ICS processes for accounting and financial reporting is evaluated based on a 
­cascaded self-assessment system that starts with the persons directly involved in the processes, then 
involves the principal responsible managers and ends with the Group Management Board. The system 
also makes use of internal and external audits. An IT system in use throughout the Group ensures uni-
form and audit-proof documentation and transparent presentation of all ICS-relevant business processes 
along with the relevant risks, controls and effectiveness evaluations. 
The Group Management Board has confirmed the effective functioning of the internal control system 
for accounting and financial reporting and the relevant criteria for the 2013 business year. However,  
it should be noted that an internal control system, irrespective of its design, cannot provide absolute 
­assurance that material misstatements in the accounting will be avoided or identified. 
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Compliance management system
Our compliance management system aims to encourage and ensure lawful, responsible and sustainable 
conduct by our employees. It is designed to identify potential violations in advance and systematically 
prevent their occurrence. The compliance management system thus contributes significantly to the inte-
gration of compliance into our operating units and their processes.
In light of the Bayer Group’s diversified structure and international alignment, we are active in different 
industry sectors, markets and geographical regions worldwide, each of which has its own local legisla-
tion and industry codes. All significant compliance risks are identified by evaluating cases reported 
around the world and performing a trend analysis on this basis. New tools were also developed and com-
municated in 2013 together with the subgroups to enhance the systematic, preventive identification and 
assessment of risks. Risk identification will be carried out both bottom-up via the country organizations 
and top-down via the global functions, taking global, local and business-specific aspects into account. In 
addition, the Corporate Auditing department performed compliance program audits for the first time be-
ginning in mid-2013. These audits proactively evaluate the implementation of the Corporate Compliance 
Policy in the country organizations. 
Risk Early Warning System pursuant to Section 91 Paragraph 2 of the  
German Stock Corporation Act
A process known as BayRisk has been established to enable the early identification of developments that 
could endanger the company’s continued existence, thus satisfying the legal requirements regarding an 
early warning system for corporate risks pursuant to Section 91 Paragraph 2 of the German Stock Corpo-
ration Act. A central unit within the Corporate Center establishes the framework and standards for the 
design of the Group’s early warning system. 
The BayRisk process is decentrally organized, with each subgroup, service company or central function 
being originally responsible for identifying, evaluating, managing and reporting at an early stage any 
­potential developments or events that could prevent our company from sustainably increasing its value. 
It not only includes risks that could immediately impact our financial targets, but also those that could 
affect the achievement of qualitative objectives. In the Life Science subgroups, the information required 
for the BayRisk process is supported by separate enterprise risk management systems. Risk officers are 
appointed to evaluate, manage and monitor the identified risks according to both financial and non- 
financial criteria. 
Risks are evaluated using estimates of the likelihood that they will materialize, the potential impact 
and / or their relevance for our external stakeholders. The following matrix illustrates the financial crite-
ria for rating a risk as high, medium or low. 
All significant risks and the respective countermeasures are documented in a Group-wide database. The 
risk portfolio is reviewed three times a year. Significant changes must be quickly entered in the database 
and reported directly to the Group Management Board. Details of the risk portfolio form part of a man-
agement information system accessible to the members of the Group Leadership Circle. A report on the 
risk portfolio is submitted to the Audit Committee of the Supervisory Board once a year.
Assessment Matrix According to Financial Criteria 
[Table 3.20.3]
Likelihood of occurrence based on a ten-year period
Unlikely
Possible   
Very likely
(< 10%)
(10  –  70%) 
(> 70%)
Accumulated impact (€ million)
 
 
 
 > 1,250
H
H
H
500 – 1,250
M
M
H
 < 500
L
L
L
* H = high risk, M = medium risk, L = low risk
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Process-independent monitoring
The effectiveness of our management systems is monitored and evaluated by Bayer’s internal audit  
department (Corporate Auditing) at regular intervals. Corporate Auditing performs an independent and 
objective audit function that is designed to verify compliance with laws and directives. The unit also 
supports the company in achieving its goals by systematically and deliberately evaluating the efficiency 
and effectiveness of governance and control environments, management systems and the implemented 
controls, and helping to improve them. The selection of audit targets follows a risk-based approach. 
Corporate Auditing performs its tasks according to internationally recognized standards and delivers 
reliable audit outcomes. This is confirmed by a quality assessment undertaken in 2012 by the American 
Institute of Internal ­Auditors (IAA). A report is presented annually to the Audit Committee of the Super-
visory Board on the internal control system and its effectiveness.
Risks in the areas of occupational health and safety, plant safety, hazard prevention, environmental pro-
tection and product quality are assessed through specific HSEQ (health, safety, environment and quality) 
audits. 
In addition, the external auditor, as part of its audit of the annual financial statements, assesses the basic 
suitability of the early warning system for identifying at an early stage any risks that could endanger the 
company’s continued existence. The auditor regularly reports to the Group Management Board and the 
Supervisory Board on the identification of any weaknesses in the internal control system. 
Audit outcomes are taken into account in the continuous enhancement of our management processes. 
20.3.2 Opportunities and Risks
As a global enterprise with a diversified portfolio, the Bayer Group is constantly exposed to a wide range 
of internal or external developments or events that could significantly impact the achievement of our fi-
nancial and non-financial objectives.
This chapter outlines both opportunities and risks. Only those risks that are classified in our risk matrix 
as “medium” or “high” are included. The risks are more highly aggregated here than in our internal doc-
umentation. The sequence in which the risks are listed does not imply any order of significance. The op-
portunities and risks described apply to all subgroups unless otherwise indicated.
Environment
Ethical conduct is a matter of essential importance for society. Many stakeholders evaluate companies 
according to whether they conduct themselves not just “legally” – but also “legitimately.” The Bayer 
Group is dedicated to sustainable development in all areas of its business activity. Any violations of this 
voluntary commitment and the resulting adverse media reporting or negative public perception of the 
company may damage the reputation of the Bayer brand. We counter this risk through responsible cor-
porate governance that is geared toward generating not only economic but also ecological and social 
benefit. 
In the Emerging Markets – particularly Asia and Latin America, and prospectively in Africa – we see 
­opportunities arising out of increasing affluence and the associated growth in demand for pharmaceuti-
cal products, for example. Bayer is therefore systematically expanding its business in these regions in 
particular. 
At the same time, however, the risk exists that our growth could be impeded by increasing global cost 
pressure on health systems. Pharmaceutical products are subject to regulatory price controls in many 
markets, and government reimbursement systems often favor less expensive generic medicines over 
branded products. In addition, in some markets, major suppliers in the health care sector can exert sub-
stantial pressure on prices. Price controls and pricing pressure reduce earnings from our pharmaceutical 
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products and may occasionally make the market launch of a new product unprofitable. We expect the 
current extent of regulatory controls and market pressures on pricing to persist or increase. Changes 
with respect to price development and governmental price controls in our key markets are continuously 
monitored. Where necessary, we adjust our business model depending on the extent of such price con-
trols and the pressure on prices.
Further opportunities and risks may also result if actual market developments vary from those we predict 
in Chapter 20.1 “Economic Outlook.” Where macroeconomic developments deviate from forecasts, this 
may either positively or negatively impact our sales and earnings expectations. 
For MaterialScience, an economic downturn, changes in competitors’ behavior or the market entry of 
new competitors can lead to a more intense competitive situation characterized by overcapacities and 
increased pressure on prices.
Continuous analysis of the business environment and of economic forecasts enables us to pursue the 
opportunities we identify and mitigate risks. We respond to fluctuations in demand by adjusting our 
capacities.
Innovation
Innovation is the key driver of Bayer’s future growth. 
The trends described below not only pose challenges, but also offer opportunities for us to develop and 
market innovative solutions to overcome them.
Increase in life expectancy
Certain diseases, such as cancer or chronic cardiovascular disorders, are on the rise as a consequence  
of higher life expectancy. HealthCare is responding to the increased demand for innovative health care 
products to treat age-related diseases by focusing its R&D activities on therapeutic areas such as oncolo-
gy and cardiology. 
Shortage of arable land, increasing demand for food
The growing world population poses one of the principal challenges to the sustainable supply of food, 
particularly in view of the reduction in arable land caused by increasing urbanization and extreme 
weather events associated with climate change. Increasing affluence in the emerging countries is boost-
ing the demand for animal-based food products. We expect there to be an increasing need for high-value 
seed and crop protection products to allow sufficient food and animal feed to be produced to satisfy 
­rising demand despite limited acreages. For example, CropScience is developing processes to better 
protect crops against climate and environmental stresses. 
Conserving natural resources and protecting the climate
The finite nature of certain natural resources and efforts to protect the climate are boosting the demand 
for innovative products and technologies that reduce resource consumption and lead to lower emissions. 
This trend is being reinforced by increasingly stringent regulatory requirements and growing consumer 
awareness for the need to use resources sustainably. MaterialScience is therefore developing new mate-
rials that help to raise energy efficiency and reduce emissions. For example, polyurethane from Material-
Science is used in the construction industry for thermal insulation, giving a positive energy balance, 
while its polycarbonate is used in the automotive industry to reduce vehicle weight.
Our activities concentrate on the development of innovative solutions to address these trends and global 
challenges. To strengthen our innovation capability, we place special importance on networking and 
­cooperation both within and outside of our company. Of particular significance here is interdisciplinary 
research at the interface between human, animal and plant health, which is being driven forward by Nim-
bus, a joint project of our two Life Science subgroups. Substantial research synergies can be achieved in 
this way and new mechanisms of action investigated that could lead to the development of new products 
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in the long term. Our strategy also encompasses research projects with outside partners from academia 
and industry that give us access to complementary technologies and external innovation potential. 
For further information, see Chapter 5 “Research, Development, Innovation” and Chapter 3 “Strategies 
of the Subgroups.” 
Despite all our efforts, we cannot assure that all of the products we are currently developing or will de-
velop in the future will achieve planned approval / registration or commercial success, if, for example, a 
drug candidate fails to meet trial endpoints. The Bayer Group pursues a holistic portfolio management 
strategy in order to estimate the probability of success and prioritize its development projects. Further-
more, the expectations of the public and the regulatory authorities with regard to the safety and efficacy 
of chemical and pharmaceutical products are constantly rising. Against this background, we continue to 
anticipate increasing regulatory requirements for clinical or (eco)toxicological studies, for example. This 
increases product development costs and the time it takes to obtain registration or marketing approval. 
Special projects are set up to coordinate the successful implementation of new regulations.
Where it appears strategically advantageous, we may supplement our organic growth through acquisi-
tions of companies or businesses. Failure to successfully integrate a newly acquired business or unex-
pectedly high integration costs could jeopardize the achievement of qualitative or quantitative targets 
and adversely impact earnings. Teams of experts therefore manage both the due diligence process and 
the integration itself. Due diligence includes reviewing risk-relevant factors such as compliance with ap-
plicable environmental regulations and occupational health and safety standards at production sites.
Patent protection
Patents guarantee the protection of our intellectual property. In the event of successful commercializa-
tion, profits can be invested to enable continued, sustainable research and development. Due to the long 
period of time between the patent application and the market launch of a product, Bayer generally only 
has a few years in which to earn an adequate return on its intellectual property. This makes effective and 
reliable patent protection all the more important.
A large proportion of our products, especially in our Life Science businesses, is protected by patents. 
Generic manufacturers and others attempt to contest patents prior to their expiration. Sometimes a 
­generic version of a product may even be launched “at-risk” prior to the issuance of a final patent deci-
sion. We are currently involved in legal proceedings to enforce patent rights relating to our products. 
Details of these proceedings are given in Note [32] to the consolidated financial statements. When a 
patent defense is unsuccessful, or if one of our patents expires, our prices are likely to come under 
pressure because of increased competition from generic products entering the market. Legal action by 
third parties for alleged infringement of patent or proprietary rights by Bayer may impede or even halt 
the development or manufacturing of certain products or require us to pay monetary damages or 
­royalties to third parties. Our patents department regularly reviews the patent situation in conjunction 
with the respective operating units and watches for potential patent infringements so that legal action 
can be taken if necessary. 
Products and product stewardship
Bayer assesses the potential health and environmental risks of a product along the entire value chain – 
from research and development through production, marketing and use by the customer to disposal. 
Despite extensive studies prior to approval or registration, it is possible that products could be partially 
or completely withdrawn from the market due to the occurrence of adverse side effects or other factors. 
Such a withdrawal may be voluntary or result from legal or regulatory measures. The possibility that un-
wanted trace amounts of genetically modified organisms may occur in agricultural products and / or 
foodstuffs cannot be entirely excluded. Potential payments of damages in connection with the above 
risks may materially diminish our earnings.
 	See Chapters  
	5 and 3
 	Consolidated 
Financial  
Statements 
Note 32
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Our Life Science businesses counter these risks through a holistic organizational structure and process 
organization in the areas of pharmaceutical and crop protection product safety and testing. In addition, a 
comprehensive product stewardship program is in place at CropScience. For further information, see 
Chapter 10 “Product Stewardship.”
Another risk we face is that of illegal trading of counterfeit medicines and crop protection products by 
criminal third parties. In most cases, the composition and quality of counterfeit products is inferior to 
that of the original products. No local regulatory authority assures the quality of the manufacturing or 
distribution process, so product recall is not possible. Products originating from illegal third-party manu-
facturing not only endanger patients, users, animals and the environment, but also jeopardize the good 
reputation of our company and our products and undermine our competitiveness.
Bayer actively cooperates with authorities’ efforts to combat product counterfeiting through preventive 
measures and the prosecution of offenders. 
Procurement and production
Our Supplier Code of Conduct sets forth our sustainability principles and explains what we expect from 
our partners along the value chain. The Code requires, among other things, that our suppliers observe 
environmental regulations, occupational health and safety rules, human rights and other provisions – 
such as forgoing all forms of child labor. Violations of the Code may harm our company’s reputation. 
Through supplier assessments and audits, we verify that our partners along the supply chain actually 
­implement and adhere to our Code of Conduct (see Chapter 8 “Procurement and Production”).
The Bayer Group requires significant quantities of energy and petrochemical feedstocks for its produc-
tion processes. Procurement prices for energy and raw materials may fluctuate significantly. Experi­
ence has shown that higher production costs cannot always be passed on to our customers through 
price adjustments. This applies especially at MaterialScience. 
We place great importance not only on product safety and compatibility but also on protecting our em-
ployees and the environment. Risks associated with the manufacturing, filling, storage or shipping of 
products are mitigated through integrated quality, health, environmental protection and safety manage-
ment. The materialization of such risks may result in personal injury, property damage, environmental 
contamination, loss of production, business interruptions and / or liability for compensation payments. 
Operations at our sites may be disrupted by natural disasters, fires or explosions, sabotage or supply 
shortages for our principal raw materials or intermediates. This applies particularly to the biotech prod-
ucts of HealthCare because of the highly complex manufacturing processes. If we are unable to meet de-
mand, structural sales declines may occur, particularly in our Pharmaceuticals business. We counter this 
risk by distributing production for certain products among multiple sites or by building up safety stocks. 
Furthermore, the Bayer Emergency Response System (BayErs) was developed for our production sites 
as a mandatory component of our HSEQ management. It is aimed at protecting employees, neighbors, 
the environment and production facilities from the risks described. The Group Regulation “Safety and 
Crisis Management” forms the basis for this.
Increased ecological awareness creates opportunities for MaterialScience in two ways. On the one hand, 
market potential results from the development of innovative materials for our customers (see Chapter 5 
“Research, Development, Innovation”). On the other hand, if we succeed in increasing the efficiency of 
our production processes, this benefits the environment and reduces our costs at the same time. By de-
veloping new production technologies and applying internationally recognized energy management sys-
tems, we aim to help meet increasingly stringent environmental regulations, further reduce emissions 
and waste, and increase energy efficiency. In this way we not only contribute to sustainable climate pro-
tection and the conservation of natural resources, but also achieve cost and competitive advantages.
 	See Chapter 8
 	See Chapter 10
 	See Chapter 5
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20. Future Perspectives
20.3 Opportunity and Risk Report
Employees
Skilled and dedicated employees are essential for the company’s success. Particularly in the Emerging 
­Markets of Asia and Latin America, the number of people with the technical and language skills needed 
to meet the demanding requirements of an international enterprise remains relatively small. According-
ly, those who possess these skills are highly sought after by locally based companies. If we are unable 
to recruit a sufficient number of employees in these countries and retain them within Bayer, this could 
have significant adverse consequences for the company’s future development.
We aim to convince our target groups of the benefits offered by our company through comprehensive 
human resources marketing. These include competitive compensation with performance-related com-
ponents as well as an extensive range of training and development opportunities. We also pursue a 
­diversity-based human resources policy to tap the full potential of the employment market. Our human 
resources policy is based on the principles of our Human Rights Position, corporate values and Corpo-
rate Compliance Policy.
For more information see Chapter 7 “Employees.”
Information technology
Business and production processes and the internal and external communications of the Bayer Group 
are increasingly dependent on global IT systems. 
A significant technical disruption or failures of IT systems could severely impair our business and pro-
duction processes. Technical precautions such as data recovery and continuity plans are defined and 
continuously evolved together with our internal IT service provider.
The confidentiality of internal and external data is of fundamental importance to us. A loss of data confi-
dentiality, integrity or authenticity could lead to manipulation and / or the uncontrolled outflow of data 
and know-how. We have measures in place to counter this risk, including a comprehensive authorization 
concept.
A Group-wide committee has been established to determine the fundamental strategy, architecture and 
safety measures for the Bayer Group. The measures are now being implemented by the subgroups and 
service companies in conjunction with this central organization.
Law and compliance
The Bayer Group is exposed to numerous legal risks from legal disputes or proceedings to which we are 
currently a party or which could arise in the future, particularly in the areas of product liability, competi-
tion and antitrust law, patent disputes, tax assessments and environmental protection.
Investigations of possible legal or regulatory violations, such as potential infringements of antitrust law 
or certain marketing and / or distribution methods, may result in the imposition of civil or criminal 
­penalties – including substantial monetary fines – and / or other adverse financial consequences, harm 
Bayer’s reputation and ultimately detract from the company’s success.
To encourage and ensure the observance of laws and regulations, Bayer has established a global compli-
ance management system that forms part of its corporate culture (see Chapter 18.3 “Compliance”).
Legal proceedings currently considered to involve material risks are described in Note [32] to the 
­consolidated financial statements.
Financial opportunities and risks
The Bayer Group has financial opportunities at its disposal in the form of the market prices it can 
­command for its products, and is exposed to financial risks in the form of liquidity, credit and market 
price risks, as well as risks resulting from pension obligations.
 	See Chapter 18.3
 	Consolidated 
	Financial 
	Statements 
	Note 32
 	See Chapter 7
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20. Future Perspectives
20.3 Opportunity and Risk Report
The management of financial opportunities and risks takes place using established, documented pro-
cesses. One component is financial planning, which serves as the basis for determining the liquidity risk 
and the future foreign currency and interest-rate risks and covers all Group companies that are relevant 
from a cash-flow perspective. Financial planning comprises a planning horizon of 12 months and is reg-
ularly updated. 
The following paragraphs provide details of these and other financial opportunities and risks and how 
they are managed.
Further information is provided in Chapter 16.7 “Financial Management of the Group.”
Liquidity risk
Liquidity risks result from the possible inability of the Bayer Group to meet current or future payment 
obligations due to a lack of cash or cash equivalents. The liquidity risk is determined and managed by 
the central finance department as part of our same-day and medium-term liquidity planning.
Payment obligations from financial instruments are explained according to their maturity in Note [30.2] 
to the consolidated financial statements.
The Group holds sufficient liquidity to ensure the fulfillment of all planned payment obligations at matu-
rity. In addition, a reserve is maintained for unbudgeted shortfalls in cash receipts or unexpected dis-
bursements. The amount of this liquidity reserve is regularly reviewed and adjusted as necessary ac-
cording to circumstances. 
Liquid assets are held mainly in the form of overnight and term deposits. Credit facilities also exist with 
banks. These include, in particular, a €3.5 billion syndicated credit facility, which is undrawn. 
Credit risks
Credit risks arise from the possibility that the value of receivables or other financial assets of the Bayer 
Group may be impaired because counterparties cannot meet their payment or other performance obliga-
tions. The Bayer Group does not conclude master netting arrangements with its customers for non-de-
rivative financial instruments. Here, the total value of the financial assets represents the maximum credit 
risk exposure. In the case of derivatives, positive and negative market values may be netted under cer-
tain conditions.
To manage credit risks from trade receivables, the respective invoicing companies appoint credit manag-
ers who regularly analyze customers’ creditworthiness. Some of these receivables are collateralized, and 
the collateral is used according to local conditions. It includes credit insurance, advance payments, let-
ters of credit and guarantees. Reservation of title is generally agreed with our customers. Credit limits 
are set for all customers. All credit limits for debtors where total exposure is €10 million or more are 
evaluated by local credit management and submitted to the Group’s Central Financial Risk Committee.
Credit risks from financial transactions are managed centrally in the finance department. To minimize 
risks, financial transactions are only conducted within predefined exposure limits and with banks and 
other partners that preferably have investment-grade ratings. All risk limits are based on methodical 
models. Adherence to the risk limits is continuously monitored.
Opportunities and risks resulting from market price changes
Opportunities and risks resulting from changes in market currency and interest rates are managed  
by the central finance department. Risks are eliminated or mitigated through the use of derivative 
­financial instruments. Further details on derivatives are given in Note [30.3] to the consolidated finan-
cial statements.
 	Consolidated 
	Financial 
	Statements 
	Note 30.2
 	Consolidated 
	Financial 
	Statements 
	Note 30.3
 	See Chapter 16.7
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20. Future Perspectives
20.3 Opportunity and Risk Report
The type and level of currency and interest-rate risks are explained in the following paragraphs using 
sensitivity analyses based on hypothetical changes in risk variables (such as interest curves) to deter-
mine the potential effects of market price fluctuations on equity and earnings. The assumptions used in 
the sensitivity analyses reflect our view of the changes in currency exchange and interest rates that are 
reasonably possible over a one-year period. These assumptions are regularly reviewed.
Foreign currencies
Foreign currency opportunities and risks for the Bayer Group result from changes in exchange rates and 
the related changes in the value of financial instruments (including receivables and payables) and of an-
ticipated payment receipts and disbursements in the functional currency.
Receivables and payables in liquid currencies from operating activities and financial items are generally 
fully exchange-hedged through forward exchange contracts and cross-currency interest-rate swaps.
Anticipated payment receipts and disbursements are hedged according to the rules agreed between the 
Group Management Board, the finance department and the operating units. Hedging takes place 
through forward exchange contracts and currency options.
Sensitivities were determined based on a hypothetical adverse scenario in which the euro depreciates by 
10% against all other currencies compared with the year-end exchange rates. Under this scenario, the 
estimated hypothetical loss of cash flows from derivative and non-derivative financial instruments would 
have diminished earnings and equity (other comprehensive income) as of December 31, 2013 by 
€250 million (December 31, 2012: €256 million). Of this amount, €122 million is related to the U.S. dollar, 
€35 million to the Japanese yen and €28 million to the Canadian dollar.
Derivatives used to hedge anticipated currency exposure that are designated for hedge accounting 
would have diminished other comprehensive income by €267 million. 
Interest rates
Interest-rate opportunities and risks result for the Bayer Group through changes in capital market inter-
est rates, which in turn could lead to changes in the fair value of fixed-rate financial instruments and 
changes in interest payments in the case of floating-rate instruments.
Interest-rate opportunities and risks are managed over a target duration established by management for 
Bayer Group debt. This target duration is subject to regular review. Interest-rate swaps are concluded to 
achieve the target structure for Group debt.
A sensitivity analysis based on our net floating-rate receivables and payables position at year end 2013, 
taking into account the interest rates relevant for our receivables and payables in all principal curren-
cies, produced the following result: a hypothetical increase of 100 basis points, or 1 percentage point, in 
these interest rates (assuming constant currency exchange rates) as of January 1, 2013 would have 
raised our interest expense for the year ended December 31, 2013 by €33 million (December 31, 2012: 
€46 million). 
Risk to pension obligations from capital market developments
The Bayer Group has obligations to current and former employees related to pensions and other 
post-employment benefits. Changes in relevant valuation parameters such as interest rates, mortality 
and rates of increases in compensation may raise the present value of our pension obligations. This may 
lead to increased costs for pension plans or diminish equity due to actuarial losses being recognized out-
side profit or loss. A large proportion of our pension and other post-employment benefit obligations is 
covered by plan assets including fixed-income securities, shares, real estate and other investments. De-
clining or even negative returns on these investments may adversely affect the future fair value of plan 
assets. This in turn may diminish equity, and / or it may necessitate additional contributions by the com-
pany. Further details are given in Note [25] to the consolidated financial statements. 
 	Consolidated 
	Financial 
	Statements 
	Note 25
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21. Takeover-Relevant Information
We address the risk of market-related fluctuations in the fair value of our plan assets through  
prudent strategic investment, and we constantly monitor investment risks in regard to our global 
­pension obligations. 
Overall assessment of opportunities and risks
The risks reported above do not endanger the company’s continued existence. There are also no  
risks with mutually reinforcing dependencies that could combine to endanger the company’s continued 
existence. 
Risks rated as “medium” or “high” did not change significantly compared with the previous year. 
Based on our product portfolio, our know-how and our innovation capability, we are convinced that  
we can take advantage of the opportunities resulting from our entrepreneurial activity and successfully 
master the challenges resulting from the risks stated above. 
21. Takeover-Relevant Information
Explanatory report pursuant to Sections 289 Paragraph 4 and  
315 Paragraph 4 of the German ­Commercial Code (HGB)
The capital stock of Bayer AG amounted as of December 31, 2013 to €2,117 million, divided into 
826,947,808 no-par bearer shares. The capital stock and the number of shares were thus unchanged 
from the end of the previous year. Each share confers one voting right.
A small number of shares may be subject to temporary trading restrictions, such as retention periods, in 
connection with employee stock participation programs.
We received no notifications in 2013 of direct or indirect holdings of shares in Bayer AG that exceed 
10% of the capital stock. The company thus is not in possession of any notifications of holdings that 
­exceed 10% of the capital stock. 
Pursuant to Section 84, Paragraph 1 of the German Stock Corporation Act (AktG), the members of the 
Board of Management are appointed and dismissed by the Supervisory Board. Since Bayer AG falls with-
in the scope of the German Codetermination Act, the appointment or dismissal of members of the Board 
of Management requires a majority of two thirds of the votes of the members of the Supervisory Board 
on the first ballot. If no such majority is achieved, the appointment may be approved pursuant to Section 
31, Paragraph 3 of the Codetermination Act on a second ballot by a simple majority of the votes of the 
members of the Supervisory Board. If the required majority still is not achieved, a third ballot is held. 
Here again, a simple majority of the votes suffices, but in this ballot the Chairman of the Supervisory 
Board has two votes pursuant to Section 31, Paragraph 4 of the Codetermination Act. Under Section 6, 
Paragraph 1 of the Articles of Incorporation of Bayer AG, the Board of Management must comprise at 
least two members. The Supervisory Board may appoint one member to be Chairman of the Board of 
Management pursuant to Section 84, Paragraph 2 of the German Stock Corporation Act or Section 6, 
Paragraph 1 of the Articles of Incorporation.
Under Section 179, Paragraph 1 of the German Stock Corporation Act, amendments to the Articles of 
­Incorporation require a resolution of the Stockholders’ Meeting. Pursuant to Section 179, Paragraph 2 of 
the German Stock Corporation Act, this resolution must be passed by a majority of three quarters of the 
voting capital represented at the meeting, unless the Articles of Incorporation provide for a different 
­majority. However, where an amendment relates to a change in the object of the company, the Articles of 
Incorporation may only specify a larger majority. Section 17, Paragraph 2 of the Articles of Incorporation 
of Bayer AG utilizes the scope for deviation pursuant to Section 179, Paragraph 2 of the German Stock 
Corporation Act and provides that resolutions may be passed by a simple majority of the votes or, where 
a capital majority is required, by a simple majority of the capital. 
	 We publish  
voting rights an-
nouncements at  
WWW.INVESTOR.
BAYER.DE/EN/
STOCK/ 
OWNERSHIP-
STRUCTURE
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21. Takeover-Relevant Information
Provisions of the Articles of Incorporation concerning Authorized Capital I and Authorized Capital II are 
entered in the commercial register of Bayer AG. With the approval of the Supervisory Board and until 
April 29, 2015, the Board of Management may use the Authorized Capital I to increase the capital stock 
by up to a total of €530 million. New shares may be issued against cash contributions and / or contribu-
tions in kind, but capital increases against contributions in kind may not exceed a total of €423 million.  
If the Authorized Capital I is used to issue shares in return for cash contributions, stockholders must 
­normally be granted subscription rights. The Board of Management may only exclude stockholders’ 
­subscription rights to shares issued out of the Authorized Capital I that do not represent more than 20% 
of the existing capital stock. Absent a further resolution on the exclusion of stockholders’ subscription 
rights, the Board of Management also may only exclude stockholders’ subscription rights to shares is-
sued under other authorizations regarding capital measures (Authorized Capital II, bonds with warrants 
or convertible bonds, purchase and sale of own shares) provided that such shares do not in total repre-
sent more than 20% of the existing capital stock.
With the approval of the Supervisory Board and until April 29, 2015, the Board of Management is also 
authorized to increase the capital by up to €212 million in one or more installments by issuing shares out 
of the Authorized Capital II in exchange for cash contributions. The stockholders must normally be 
granted subscription rights. However, the Board of Management is authorized, with the approval of the 
Supervisory Board, to exclude subscription rights for stockholders provided the capital increase out of 
the Authorized Capital II does not exceed 10% of the capital stock existing at the time this authorization 
becomes effective or the time this authorization is exercised and the issue price of the new shares is not 
significantly below the market price of the already listed shares. 
Conditional capital of €212 million exists in connection with an authorization – valid through April 29, 
2015 – to issue bonds with warrants or convertible bonds, profit-sharing rights or profit participation 
bonds (collectively referred to as “bonds”) with a total face value of €6 billion. The Board of Manage-
ment may, with the consent of the Supervisory Board and under certain conditions, exclude the bond 
subscription rights that would otherwise be granted to stockholders. One of the conditions is that the to-
tal amount of the shares required to service the bonds does not exceed 10% of the capital stock. 
Any other shares issued without granting subscription rights to the stockholders in direct or analogous 
application of Section 186, Paragraph 3, Sentence 4 of the German Stock Corporation Act shall be credit-
ed against this 10% limit. Further, the 2010 Annual Stockholders’ Meeting authorized the Board of Man-
agement to purchase and sell company shares representing up to 10% of the capital stock. This authori-
zation also expires on April 29, 2015. 
A material agreement that is subject to the condition precedent of a change of control pertains to the un-
drawn €3.5 billion syndicated credit facility arranged by Bayer AG and its U.S. subsidiary Bayer Corpora-
tion. This facility is available until December 2018 and can be extended to run for up to two further one-
year periods. The participating banks are entitled to terminate the credit facility in the event of a change 
of control at Bayer and demand repayment of any loans that may have been granted under this facility 
up to that time.
In addition, the terms of the €2.4 billion (as of December 31, 2013) in notes issued by Bayer in the years 
2006 to 2013 under its multi-currency European Medium Term Notes program also contain a change-of-
control clause. Holders of these notes have the right to demand the redemption of their notes by Bayer 
AG in the event of a change of control if Bayer AG’s credit rating is downgraded within 120 days after 
such change of control becomes effective.
Agreements exist for the members of the Board of Management in compliance with Section 4.2.3 of  
the German Corporate Governance Code to cover the eventuality of a takeover offer being made for 
­Bayer AG. Under these agreements, payments promised in the event of early termination of the service 
contract of a Board of Management member due to a change of control are limited to the value of three 
years’ compensation and may not compensate more than the remaining term of the contract.
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Consolidated Financial Statements
Bayer Annual Report 2013
 For direct access to a chapter, simply click on its name.
Bayer Group Consolidated  
Income Statements
228
Bayer Group Consolidated Statements 
of Comprehensive Income 
229
Bayer Group Consolidated Statements 
of Financial Position
230
Bayer Group Consolidated Statements  
of Cash Flows
231
Bayer Group Consolidated Statements 
of Changes in Equity
232
Notes to the Consolidated Financial  
Statements of the Bayer Group
234
1.	
Key data by segment and region
234
2. 	
General information
236
3. 
Effects of new financial reporting standards
236 
4.  
Basic principles, methods and  
critical accounting estimates
245
5.  
Segment reporting
259
6.  
Scope of consolidation; subsidiaries  
 
and affiliates
263
6.1 
Changes in the scope of consolidation
263
6.2 
Business combinations and other acquisitions 265
6.3	
Divestitures
268
 
Notes to the Income Statements
7.  
Net sales
269
8.  
Selling expenses
269
9.  
Research and development expenses
269
10.  
Other operating income
270
11.  
Other operating expenses
271
12.  
Personnel expenses and employee numbers
272
13. 	
Financial result
272
13.1 	
Income (loss) from investments  
 
in affiliated companies
273
13.2 
Net interest expense
273
13.3 
Other financial income and expenses
274
14. 	
Taxes
274
15. 	
Income / losses attributable to 
non-controlling interest
277
16.  
Earnings per share
277 
Notes to the Statements of Financial Position
17. 
Goodwill and other intangible assets
278
18.  
Property, plant and equipment
284
19.  
Investments accounted for using  
the equity method
286
20.  
Other financial assets
287
21. 	
Inventories
288
22.  
Trade accounts receivable
289
23.  
Other receivables 
291
24.  
Equity
292
25.  
Provisions for pensions and  
other post-employment benefits
295
26.  
Other provisions
304
26.1 	
Taxes
304
26.2 
Environmental protection
305
26.3 
Restructuring
305
26.4 	
Trade-related commitments
305
26.5	
Litigations
305
26.6 	
Personnel commitments
306
26.7 	
Miscellaneous
308
27. 	
Financial liabilities
308
28.  
Trade accounts payable
311
29.  
Other liabilities
311
30. 	
Financial instruments
311
30.1 	
Financial instruments by category
311
30.2	
Maturity analysis
317
30.3	
Information on derivatives
318
31.	
Contingent liabilities and  
 
other financial commitments
319
32. 	
Legal risks
321
Notes to the Statements of Cash Flows
33.  
Net cash provided by  
(used in) operating activities
325
34. 
Net cash provided by  
	
(used in) investing activities
326
35.  
Net cash provided by  
 
(used in) financing activities
326
 
Other Information 	
36. 	
Audit fees
327
37.  
Related parties
327
38.  
Total compensation of the Board of  
Management and the Supervisory Board,  
advances and loans
328
39.  
Events after the end of the reporting period
329
» TABLE OF CONTENTS
02 
Consolidated Financial Statements

228
Consolidated Financial Statements
Bayer Annual Report 2013
Bayer Group Consolidated Income Statements
Bayer Group Consolidated Income Statements
[Table 4.1]
 
Note
2012
2013
 
 
€ million
€ million
Net sales
[7]
39,741
40,157
Cost of goods sold
 
(19,070)
(19,347)
Gross profit
 
20,671
20,810
 
 
 
 
Selling expenses
[8]
(9,981)
(10,080)
Research and development expenses
[9]
(3,013)
(3,190)
General administration expenses
 
(1,866)
(1,883)
Other operating income
[10]
1,087
897
Other operating expenses
[11]
(2,970)
(1,620)
EBIT *
 
3,928
4,934
 
 
 
 
Equity-method loss
[13.1]
(18)
(16)
Financial income
 
503
389
Financial expenses
 
(1,237)
(1,100)
Financial result 
[13]
(752)
(727)
 
 
 
 
Income before income taxes
 
3,176
4,207
 
 
 
 
Income taxes
[14]
(723)
(1,021)
 
 
 
 
Income after income taxes
 
2,453
3,186
of which attributable to non-controlling interest
[15]
50
(3)
of which attributable to Bayer AG stockholders (net income)
 
2,403
3,189
 
 
 
 
€
€
Earnings per share
[16]
Basic
 
2.91
3.86
Diluted
 
2.91
3.86
2012 figures restated
* EBIT: earnings before financial result and taxes
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

229
Consolidated Financial Statements
Bayer Annual Report 2013
Bayer Group Consolidated Statements of Comprehensive Income
Bayer Group Consolidated Statements
of Comprehensive Income
[Table 4.2]
 
Note
2012
2013
  
 
€ million
€ million
Income after income taxes
 
2,453
3,186
of which attributable to non-controlling interest
[15]
50
(3)
of which attributable to Bayer AG stockholders
 
2,403
3,189
 
 
 
 
Remeasurements of the net defined benefit liability  
for post-employment benefit plans
 
[25]
 
(2,779)
 
1,946
Income taxes
[14]
848
(604)
Other comprehensive income from remeasurements of the  
net defined benefit liability for post-employment benefit plans
 
 
(1,931)
 
1,342
 
 
 
 
Other comprehensive income that will not be reclassified subsequently to profit or loss
 
(1,931)
1,342
 
 
 
 
Changes in fair values of derivatives designated as cash flow hedges
[30.3]
38
221
Reclassified to profit or loss
 
148
(156)
Income taxes
[14]
(53)
(18)
Other comprehensive income from cash flow hedges
 
133
47
  
 
 
 
Changes in fair values of available-for-sale financial assets
[20]
30
52
Reclassified to profit or loss
 
–
(76)
Income taxes
[14]
(12)
16
Other comprehensive income from available-for-sale financial assets
 
18
(8)
 
 
 
 
Changes in exchange differences recognized on translation  
of operations outside the eurozone
 
 
 
(17)
 
(737)
Reclassified to profit or loss
 
–
–
Other comprehensive income from exchange differences
 
(17)
(737)
 
 
 
 
Other comprehensive income that may be reclassified subsequently to profit or loss
 
134
(698)
 
 
 
 
Effects of changes in scope of consolidation
 
5
(1)
 
 
 
 
Total other comprehensive income *
 
(1,792)
643
of which attributable to non-controlling interest
 
(4)
(14)
of which attributable to Bayer AG stockholders
 
(1,788)
657
 
 
 
 
Total comprehensive income
 
661
3,829
of which attributable to non-controlling interest
 
46
(17)
of which attributable to Bayer AG stockholders
 
615
3,846
2012 figures restated
* total changes recognized outside profit or loss
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

230
Consolidated Financial Statements
Bayer Annual Report 2013
Bayer Group Consolidated Statements of Financial Position
Bayer Group Consolidated Statements 
of Financial Position
[Table 4.3]
 
Note
Jan. 1, 2012
Dec. 31, 2012
Dec. 31, 2013
 
 
€ million
€ million
€ million
Noncurrent assets
 
 
 
 
Goodwill
[17]
9,148
9,293
9,862
Other intangible assets
[17]
10,284
9,464
8,914
Property, plant and equipment
[18]
9,887
9,898
10,015
Investments accounted for using the equity method
[19]
265
225
203
Other financial assets
[20]
1,348
1,308
1,203
Other receivables
[23]
425
541
496
Deferred taxes
[14]
1,312
1,579
1,596
 
 
32,669
32,308
32,289
Current assets
 
 
 
 
Inventories
[21]
6,370
6,991
7,129
Trade accounts receivable
[22]
7,060
7,433
7,569
Other financial assets
[20]
2,784
857
779
Other receivables
[23]
1,636
1,655
1,476
Claims for income tax refunds
 
372
376
413
Cash and cash equivalents
 
1,771
1,698
1,662
Assets held for sale
 
84
–
–
 
 
20,077
19,010
19,028
 
 
 
 
 
Total assets
 
52,746
51,318
51,317
 
 
 
 
 
Equity
[24]
 
 
 
Capital stock of Bayer AG
 
2,117
2,117
2,117
Capital reserves of Bayer AG
 
6,167
6,167
6,167
Other reserves
 
10,912
10,167
12,434
Equity attributable to Bayer AG stockholders
 
19,196
18,451
20,718
Equity attributable to non-controlling interest
 
59
100
86
 
 
19,255
18,551
20,804
 
 
 
 
 
Noncurrent liabilities
 
 
 
 
Provisions for pensions and other post-employment benefits
[25]
7,787
9,246
7,368
Other provisions
[26]
1,726
2,111
1,977
Financial liabilities
[27]
7,995
6,962
5,590
Other liabilities
[29]
474
409
362
Deferred taxes
[14]
2,116
935
1,193
 
 
20,098
19,663
16,490
Current liabilities
 
 
 
 
Other provisions
[26]
4,217
4,844
4,727
Financial liabilities
[27]
3,683
2,568
3,441
Trade accounts payable
[28]
3,785
4,305
4,473
Income tax liabilities
[26.1]
76
72
101
Other liabilities
[29]
1,629
1,315
1,281
Liabilities directly related to assets held for sale
 
3
–
–
 
 
13,393
13,104
14,023
 
 
 
 
 
Total equity and liabilities 
 
52,746
51,318
51,317
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

231
Consolidated Financial Statements
Bayer Annual Report 2013
Bayer Group Consolidated Statements of Cash Flows
Bayer Group Consolidated Statements  
of Cash Flows
[Table 4.4]
 
Note
2012
2013
 
 
€ million
€ million
Income after income taxes
 
2,453
3,186
Income taxes
 
723
1,021
Financial result
 
752
727
Income taxes paid or accrued
 
(1,560)
(1,644)
Depreciation, amortization and impairments
 
2,988
2,896
Change in pension provisions
 
(581)
(249)
(Gains) losses on retirements of noncurrent assets
 
(219)
(105)
Gross cash flow
 
4,556
5,832
 
 
 
 
Decrease (increase) in inventories
 
(680)
(608)
Decrease (increase) in trade accounts receivable
 
(455)
(751)
(Decrease) increase in trade accounts payable
 
550
389
Changes in other working capital, other non-cash items
 
559
309
Net cash provided by (used in) operating activities (net cash flow)
[33]
4,530
5,171
 
 
 
 
Cash outflows for additions to property, plant, equipment and intangible assets
 
(1,929)
(2,157)
Cash inflows from sales of property, plant, equipment and other assets 
 
230
153
Cash inflows from divestitures
 
178
79
Cash inflows from (outflows for) noncurrent financial assets
 
(258)
204
Cash outflows for acquisitions less acquired cash
 
(466)
(1,082)
Interest and dividends received
 
104
125
Cash inflows from (outflows for) current financial assets
 
1,327
97
Net cash provided by (used in) investing activities
[34]
(814)
(2,581)
 
 
 
 
Dividend payments and withholding tax on dividends
 
(1,366)
(1,574)
Issuances of debt
 
1,308
9,078
Retirements of debt
 
(3,254)
(9,697)
Interest paid including interest rate swaps
 
(793)
(550)
Interest received from interest rate swaps
 
325
212
Cash outflows for the purchase of additional interests in subsidiaries
 
(3)
(4)
Net cash provided by (used in) financing activities
[35]
(3,783)
(2,535)
 
 
 
 
Change in cash and cash equivalents due to business activities
 
(67)
55
 
 
 
 
Cash and cash equivalents at beginning of year
 
1,771
1,698
 
 
 
 
Change in cash and cash equivalents due to changes in scope of consolidation
 
–
–
Change in cash and cash equivalents due to exchange rate movements
 
(6)
(91)
 
 
 
 
Cash and cash equivalents at end of year
 
1,698
1,662
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

232
233
Consolidated Financial Statements
Consolidated Financial Statements
Bayer Annual Report 2013
Bayer Annual Report 2013
Bayer Group Consolidated Statements of Changes in Equity
Bayer Group Consolidated Statements of Changes in Equity
Bayer Group Consolidated Statements
of Changes in Equity
 
[Table 4.5]
Accumulated Comprehensive Income
 
Capital stock  
of Bayer AG 
Capital reserves  
of Bayer AG 
Retained earnings 
incl. net income 
Exchange  
differences 
Fair-value  
measurement  
of securities
Cash flow  
hedges 
Revaluation  
surplus 
Equity attributable  
to Bayer AG  
stockholders
Equity attributable 
to non-controlling 
interest 
Equity 
 
 
€ million
€ million
€ million
€ million
 
€ million
€ million
€ million
€ million
€ million
€ million
Dec. 31, 2011 as reported
2,117
6,167
12,755
(1,811)  
24
(81)
41
19,212
59
19,271
Restatement
 
 
(16)
2
 
(2)
 
 
(16)
 
(16)
Dec. 31, 2011 restated
2,117
6,167
12,739
(1,809)
 
22
(81)
41
19,196
59
19,255
Equity transactions with owners
 
 
 
 
 
 
 
 
 
 
 
Capital increase / decrease
 
 
 
 
 
 
 
 
 
 
 
Dividend payments
 
 
(1,364)
 
 
 
 
 
(1,364)
(2)
(1,366)
Other changes
 
 
9
 
 
 
 
(5)
4
(3)
1
Other comprehensive income
 
 
(1,926)
(13)  
18
133
 
(1,788)
(4)
(1,792)
Income after income taxes
 
 
2,403
 
 
 
 
 
2,403
50
2,453
 
Dec. 31, 2012
 
2,117
 
6,167
 
11,861
 
(1,822)
   
  
40
 
52
 
36
 
18,451
 
100
 
18,551
Equity transactions with owners
 
 
 
 
 
 
 
 
 
 
 
Capital increase / decrease
 
 
 
 
 
 
 
 
 
 
 
Dividend payments
 
 
(1,571)
 
 
 
 
 
(1,571)
(3)
(1,574)
Other changes
 
 
(3)
  
 
 
 
(5)
(8)
6
(2)
Other comprehensive income
 
 
1,341
(723)
 
(8)
47
 
657
(14)
643
Income after income taxes
 
 
3,189
 
 
 
 
 
3,189
(3)
3,186
Dec. 31, 2013
2,117
6,167
14,817
(2,545)
 
32
99
31
20,718
86
20,804
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS  
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

234
235
Consolidated Financial Statements
Consolidated Financial Statements
Bayer Annual Report 2013
Bayer Annual Report 2013
Notes
1. Key data by segment and region
Notes
1. Key data by segment and region
Notes to the Consolidated Financial Statements
of the Bayer Group
1. Key data by segment and region
Key Data by Region
[Table 4.7]
 
Europe
 
North America
 
Asia / Pacific
Latin America / 
Africa / Middle East
 
Reconciliation
 
Total
 
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
 
€ million
€ million
€ million
€ million
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Net sales (external) – by market
14,722
15,086
9,576
9,680
 
8,759
8,623
6,684
6,768
–
–
39,741
40,157
Change 
+ 2.0%
+ 2.5%
+ 17.1%
+ 1.1%
 
+ 11.7%
– 1.6%
+ 10.2%
+ 1.3%
–
–
+ 8.8%
+ 1.0%
Currency-adjusted change
+ 1.5%
+ 3.1%
+ 8.8%
+ 4.2%
 
+ 3.9%
+ 6.9%
+ 8.3%
+ 10.2%
–
–
+ 4.7%
+ 5.4%
Net sales (external) – by point of origin
16,371
16,649
9,469
9,556
 
8,479
8,442
5,422
5,510
–
–
39,741
40,157
Change 
+ 1.7%
+ 1.7%
+ 15.9%
+ 0.9%
 
+ 12.8%
– 0.4%
+ 14.3%
+ 1.6%
–
–
+ 8.8%
+ 1.0%
Currency-adjusted change
+ 1.3%
+ 2.3%
+ 7.4%
+ 4.2%
 
+ 4.6%
+ 8.3%
+ 12.2%
+ 12.6%
–
–
+ 4.7%
+ 5.4%
Interregional sales
7,880
8,828
2,934
3,285
 
653
642
518
607
(11,985)
(13,362)
–
–
Other operating income
495
576
195
103
 
223
85
174
133
–
–
1,087
897
EBIT
2,623
3,965
160
83
 
802
612
682
753
(339)
(479)
3,928
4,934
Assets
27,715
27,359
10,480
11,178
 
7,215
6,694
4,330
4,490
1,578
1,596
51,318
51,317
Capital expenditures
949
1,136
574
531
 
366
363
123
125
–
–
2,012
2,155
Depreciation, amortization and impairments
1,845
1,758
675
672
 
366
373
97
89
5
4
2,988
2,896
Liabilities
20,380
19,756
6,644
5,444
 
3,449
2,937
1,355
1,183
939
1,193
32,767
30,513
Research and development expenses
2,198
2,153
588
812
 
186
174
41
51
–
–
3,013
3,190
Number of employees (as of Dec. 31)
52,300
53,600
15,300
15,200
 
26,200
28,000
16,200
16,400
–
–
110,000
113,200
2012 figures restated
Key Data by Segment
[Table 4.6]
HealthCare
CropScience
MaterialScience
Reconciliation
 
Pharmaceuticals
 
Consumer Health
 
CropScience
 
MaterialScience
 
All Other Segments
Corporate Center and 
Consolidation
 
Group
 
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
 
€ million
€ million
€ million
€ million
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Net sales (external)
10,798
11,188
7,806
7,736
 
8,383
8,819
11,491
11,238
1,260
1,169
3
7
39,741
40,157
Change
+ 8.5%
+ 3.6%
+ 8.1%
– 0.9%
 
+ 15.5%
+ 5.2%
+ 6.1%
– 2.2%
– 0.7%
– 7.2%
– 25.0%
+133.3%
+ 8.8%
+ 1.0%
Currency-adjusted change
+ 4.1%
+ 10.1%
+ 3.5%
+ 3.7%
 
+ 11.7%
+ 9.9%
+ 2.2%
+ 0.2%
– 1.0%
– 6.6%
– 25.0%
+133.3%
+ 4.7%
+ 5.4%
Intersegment sales
383
70
6
7
 
30
34
49
56
1,971
2,196
(2,439)
(2,363)
–
–
Net sales (total)
11,181
11,258
7,812
7,743
 
8,413
8,853
11,540
11,294
3,231
3,365
(2,436)
(2,356)
39,741
40,157
Other operating income
255
150
80
93
 
432
171
93
112
77
55
150
316
1,087
897
EBIT
1,104
2,031
1,101
1,229
 
1,556
1,729
581
435
(75)
(11)
(339)
(479)
3,928
4,934
EBIT before special items
2,327
2,552
1,460
1,421
 
1,543
1,801
613
429
42
49
(346)
(479)
5,639
5,773
EBITDA before special items
3,232
3,490
1,887
1,844
 
2,025
2,248
1,263
1,072
214
222
(341)
(475)
8,280
8,401
Gross cash flow
1,319
2,293
1,340
1,280
 
1,332
1,590
952
887
(131)
113
(256)
(331)
4,556
5,832
Capital invested
13,579
14,953
8,061
8,367
 
9,852
9,909
10,713
10,029
1,366
597
(224)
(107)
43,347
43,748
CFROI
7.7%
14.2%
14.8%
14.0%
 
12.5%
14.2%
5.8%
5.5%
–
–
–
–
8.2%
11.1%
Net cash flow
2,262
1,853
1,284
1,127
 
899
682
735
977
(370)
308
(280)
224
4,530
5,171
Equity-method income (loss)
(1)
–
–
–
 
–
–
(17)
(16)
–
–
–
–
(18)
(16)
Equity-method investments
1
–
–
–
 
–
–
224
203
–
–
–
–
225
203
Assets
16,433
16,585
8,576
8,515
 
10,364
10,826
8,968
8,429
1,709
1,981
5,268
4,981
51,318
51,317
Capital expenditures
527
564
257
209
 
365
532
638
605
223
239
2
6
2,012
2,155
Additions to noncurrent assets from acquisitions
–
1,121
24
419
 
518
97
57
–
–
–
–
–
599
1,637
Depreciation, amortization and impairments
918
1,093
743
505
 
494
455
655
666
173
173
5
4
2,988
2,896
of which impairment losses
23
150
320
101
 
15
3
7
29
3
15
–
–
368
298
of which impairment loss reversals
(16)
–
–
(13)
 
(5)
–
–
–
–
–
–
–
(21)
(13)
Liabilities
6,007
4,873
2,413
2,108
 
4,405
4,114
2,861
2,473
2,992
3,657
14,089
13,288
32,767
30,513
Research and development expenses
1,561
1,654
394
386
 
779
857
241
208
19
21
19
64
3,013
3,190
Number of employees (as of Dec. 31)
37,200
38,000
17,600
18,000
 
20,800
22,400
14,500
14,300
19,200
19,800
700
700
110,000
113,200
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS  
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236
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
2. General information
2. General information
The consolidated financial statements of the Bayer Group as of December 31, 2013, were prepared by Bayer Aktien- 
gesellschaft (Bayer AG) according to the International Financial Reporting Standards (IFRS) issued by the International 
Accounting Standards Board (IASB), London, and the interpretations of the IFRS Interpretations Committee (IFRS IC), 
both as ­endorsed by the European Union and in effect at the end of the reporting period. The applicable further re-
quirements of Section 315a of the German Commercial Code were also taken into account. 
Bayer AG is a global enterprise based in Germany. Its registered office is at Kaiser-Wilhelm-Allee 1, 51368 Leverkusen. 
Its material business activities in the fields of health care, agriculture and high-tech polymer materials take place in 
the HealthCare, CropScience and MaterialScience subgroups, respectively. The activities of the various segments are 
outlined in Note [5].
A declaration concerning the German Corporate Governance Code has been issued pursuant to Section 161 of the 
­German Stock Corporation Act and made available to stockholders. 
The Board of Management of Bayer AG prepared the consolidated financial statements of the Bayer Group on  
February 17, 2014. They were discussed by the Audit Committee of the Supervisory Board of Bayer AG at its meeting 
on February 25, 2014, and approved by the Supervisory Board at its plenary meeting on February 26, 2014.
In the income statement and statement of comprehensive income, statement of financial position, statement of cash 
flows and statement of changes in equity, certain items are combined for the sake of clarity. These are explained in 
the Notes. The income statement is prepared using the cost-of-sales method. Assets and liabilities are classified by 
maturity. They are regarded as current if they mature within one year or within the normal business cycle of the com-
pany or the Group, or are held for sale. The normal business cycle is defined for this purpose as beginning with the 
procurement of the resources necessary for the production process and ending with the receipt of cash or cash equiv-
alents as consideration for the sale of the goods or services produced in that process. Inventories and trade accounts 
receivable and payable are always presented as current items. Deferred tax assets and liabilities and pension provi-
sions are always presented as noncurrent items.
The consolidated financial statements of the Bayer Group are drawn up in euros. Amounts are stated in millions of 
­euros (€ million) except where otherwise indicated.
The financial statements of the individual consolidated companies are prepared as of the closing date of the Group 
­financial statements.
3. Effects of new financial reporting standards
Financial reporting standards applied for the first time in 2013
The first-time application of the following financial reporting standards was of material importance. The prior-year 
­figures have been restated accordingly.
IAS 19 (Employee Benefits) as revised in 2011, referred to in the following as IAS 19R (IAS 19 revised), contains 
­amended accounting rules for defined benefit pension plans and severance agreements. Contrary to the previous rule, 
IAS 19R requires that past service cost be recognized immediately in profit or loss. In addition, the net interest cost 
calculated on the net pension liability by applying a discount rate for high-quality corporate bonds is now ­recognized 
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

237
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
3. Effects of new financial reporting standards
in profit or loss. Remeasurement amounts resulting from actuarial gains and losses, the balance of the ­return on plan 
­assets and amounts already recognized as net interest income, and the effect of the asset ceiling are recognized out-
side profit or loss in the statement of comprehensive income. Net interest expense continues to be ­recognized in the 
financial result.
IAS 19R further specifies that severance payments to be earned in future periods must be recognized in profit or loss 
over the respective period of service. This revision led to a change in the accounting for top-up payments to employees 
under pre-retirement part-time working agreements in Germany. In the past, provisions were established at the time 
the offer of a pre-retirement part-time working agreement was made or the agreement was concluded, even when 
­service remained to be provided by the employee in the future.
In view of the clarifying information contained in IAS 19R, “other post-employment benefit obligations” in Germany 
(particularly from pre- and early retirement obligations) were reclassified from provisions for pensions and other 
post-employment benefits to other provisions for personnel commitments.
IFRS 11 (Joint Arrangements) prescribes the accounting for joint arrangements and supersedes IAS 31 (Interests in Joint 
Ventures) and SIC-13 (Jointly Controlled Entities – Non-Monetary Contributions by Venturers). A joint arrangement is 
deemed to exist if the Bayer Group through a contractual agreement jointly controls activities managed with a third 
party. Joint control is only deemed to exist if decisions regarding the relevant activities require the unanimous consent 
of the parties sharing control. Joint arrangements are classified as either joint operations or joint ventures. The Bayer 
Group recognizes the share of assets, liabilities, revenues and expenses relating to its interest in a joint operation in 
­accordance with its rights and obligations. The investment in a joint venture is accounted for using the equity method 
in accordance with the provisions of the amended IAS 28 (Investments in Associates and Joint Ventures). The applica-
tion of IFRS 11 (Joint Arrangements) and IAS 28 (Investments in Associates and Joint Ventures) is mandatory in the E.U. 
for annual periods beginning on or after January 1, 2014. Earlier application is permitted. The Bayer Group has applied 
these standards retrospectively since January 1, 2013 in compliance with the transitional provisions.
Due to the first-time application of IFRS 11, Lyondell Bayer Manufacturing Maasvlakte VOF, Netherlands – which was 
previously accounted for using the equity method – is now accounted for as a joint operation and therefore the share 
of the Bayer Group in the assets, liabilities, revenues and expenses is included in the consolidated financial statements 
in accordance with the Bayer Group’s rights and obligations. The €15 million difference, arising from the reclassifica-
tion, between the previous carrying amount according to the equity method and the pro-rated net assets was reflected 
as a reduction in other reserves.
Pursuant to IFRS 11, the joint ventures Bayer IMSA, S.A. de C.V., Mexico, and Bayer Zydus Pharma Private Limited, 
­India, which were previously included by proportionate consolidation, are now accounted for using the equity method.
The interest in Baulé S.A.S., France, was accounted for retrospectively for the first quarter of 2012 using the equity 
method. Prior to the application of IFRS 11 it was included by proportionate consolidation. The remaining shares of 
Baulé were acquired effective March 31, 2012, and the company has been fully consolidated since that date.
The effects that the new financial reporting standards applied for the first time in 2013 would have had on the relevant 
figures for the prior-year period or the respective opening / closing dates are shown in the following tables.
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

238
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
3. Effects of new financial reporting standards
Accounting Changes: Consolidated Income Statement 2012
[Table 4.8]
 
2012
 
 
 
 
Before  
accounting 
changes
Accounting changes
 
 
 
IAS 19R  
(2011)
IFRS 11
 
Transition to 
accounting for 
share in assets 
and liabilities
 
Transition  
to equity 
method
 
After  
accounting 
changes
 
€ million
€ million
€ million
€ million
€ million
Net sales
39,760
–
(8)
(11)
39,741
Cost of goods sold
(19,059)
–
(16)
5
(19,070)
Gross profit
20,701
–
(24)
(6)
20,671
 
 
 
 
 
 
Selling expenses
(9,987)
–
–
6
(9,981)
Other operating income
1,083
5
–
(1)
1,087
Other operating expenses
(2,958)
(8)
(3)
(1)
(2,970)
EBIT *
3,960
(3)
(27)
(2)
3,928
 
 
 
 
 
 
Equity-method loss
(46)
–
29
(1)
(18)
Financial income
502
–
–
1
503
Financial expenses
(1,168)
(70)
–
1
(1,237)
Financial result 
(712)
(70)
29
1
(752)
 
 
 
 
 
 
Income before income taxes
3,248
(73)
2
(1)
3,176
 
 
 
 
 
 
Income taxes
(752)
29
–
–
(723)
 
 
 
 
 
 
Income after income taxes
2,496
(44)
2
(1)
2,453
of which attributable to Bayer AG stockholders  
(net income)
 
2,446
 
(44)
 
2
 
(1)
 
2,403
Earnings per share (€)
2.96
(0.05)
–
–
2.91
* EBIT: earnings before financial result and taxes
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239
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
3. Effects of new financial reporting standards
Accounting Changes: Consolidated Statement of Comprehensive Income 2012
[Table 4.9]
2012
 
 
 
 
Before  
accounting 
changes
Accounting changes
 
 
 
IAS 19R 
(2011)
IFRS 11
 
Transition to 
accounting for 
share in assets 
and liabilities
 
Transition  
to equity 
method
 
After  
accounting 
changes
 
€ million
€ million
€ million
€ million
€ million
Income after income taxes
2,496
(44)
2
(1)
2,453
of which attributable to Bayer AG stockholders
2,446
(44)
2
(1)
2,403
 
 
 
 
 
 
Remeasurements of the net defined benefit liability  
for post-employment benefit plans
 
(2,849)
 
70
 
–
 
–
 
(2,779)
Income taxes
876
(28)
–
–
848
Other comprehensive income from remeasurements  
of the net defined benefit liability for post-employment 
benefit plans
 
 
(1,973)
 
 
42
 
 
–
 
 
–
 
 
(1,931)
 
 
 
 
 
 
Other comprehensive income that will not be reclassified  
subsequently to profit or loss
 
(1,973)
 
42
 
–
 
–
 
(1,931)
 
 
 
 
 
 
Changes in exchange differences recognized  
on translation of operations outside the eurozone
 
(16)
 
–
 
–
 
(1)
 
(17)
Other comprehensive income from exchange differences
(16)
–
–
(1)
(17)
 
 
 
 
 
 
Other comprehensive income that may be reclassified  
subsequently to profit or loss
 
135
 
–
 
–
 
(1)
 
134
 
 
 
 
 
 
Total other comprehensive income *
(1,833)
42
–
(1)
(1,792)
of which attributable to Bayer AG stockholders
(1,829)
42
–
(1)
(1,788)
 
 
 
 
 
 
Total comprehensive income
663
(2)
2
(2)
661
of which attributable to Bayer AG stockholders
617
(2)
2
(2)
615
* total changes recognized outside profit or loss
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240
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
3. Effects of new financial reporting standards
Accounting Changes: Consolidated Statement of Financial Position as of January 1, 2012
[Table 4.10]
Jan. 1, 2012
Before  
accounting 
changes
Accounting changes
After  
accounting 
changes
IAS 19R  
(2011)
IFRS 11
 
Transition to 
accounting for 
share in assets 
and liabilities
Transition to 
equity method
 
€ million
€ million
€ million
€ million
€ million
Noncurrent assets
 
 
 
 
 
Goodwill
9,160
–
–
(12)
9,148
Other intangible assets
10,295
–
–
(11)
10,284
Property, plant and equipment
9,823
–
66
(2)
9,887
Investments accounted for using the equity method
319
–
(89)
35
265
Other financial assets
1,364
–
(17)
1
1,348
Deferred taxes
1,311
1
–
–
1,312
 
32,697
1
(40)
11
32,669
Current assets
 
 
 
 
 
Inventories
6,368
–
9
(7)
6,370
Trade accounts receivable
7,061
–
–
(1)
7,060
Other receivables
1,628
–
6
2
1,636
Claims for income tax refunds
373
–
–
(1)
372
Cash and cash equivalents
1,770
–
4
(3)
1,771
 
20,068
–
19
(10)
20,077
 
 
 
 
 
 
Total assets
52,765
1
(21)
1
52,746
 
 
 
 
 
 
Equity
 
 
 
 
 
Other reserves
10,928
3
(23)
4
10,912
Equity attributable to Bayer AG stockholders
19,212
3
(23)
4
19,196
 
19,271
3
(23)
4
19,255
 
 
 
 
 
 
Noncurrent liabilities
 
 
 
 
 
Provisions for pensions and other post-employment benefits
7,870
(83)
–
–
7,787
Other provisions
1,649
78
–
(1)
1,726
Deferred taxes
2,116
3
(3)
–
2,116
 
20,104
(2)
(3)
(1)
20,098
Current liabilities
 
 
 
 
 
Other provisions
4,218
–
–
(1)
4,217
Financial liabilities
3,684
–
–
(1)
3,683
Trade accounts payable
3,779
–
7
(1)
3,785
Other liabilities
1,630
–
(2)
1
1,629
 
13,390
–
5
(2)
13,393
 
 
 
 
 
 
Total equity and liabilities 
52,765
1
(21)
1
52,746
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Bayer Annual Report 2013
Notes
3. Effects of new financial reporting standards
Accounting Changes: Consolidated Statement of Financial Position as of December 31, 2012
[Table 4.11]
Dec. 31, 2012
Before  
accounting 
changes
Accounting changes
After  
accounting 
changes
IAS 19R  
(2011)
IFRS 11
 
Transition to 
accounting for 
share in assets 
and liabilities
Transition  
to equity 
method
 
€ million
€ million
€ million
€ million
€ million
Noncurrent assets
 
 
 
 
 
Property, plant and equipment
9,863
–
37
(2)
9,898
Investments accounted for using the equity method
284
–
(63)
4
225
Other financial assets
1,324
–
(17)
1
1,308
Deferred taxes
1,581
(1)
–
(1)
1,579
 
32,350
(1)
(43)
2
32,308
Current assets
 
 
 
 
 
Inventories
6,980
–
14
(3)
6,991
Trade accounts receivable
7,431
–
–
2
7,433
Other financial assets
856
–
–
1
857
Other receivables
1,648
–
8
(1)
1,655
Cash and cash equivalents
1,695
–
5
(2)
1,698
 
18,986
–
27
(3)
19,010
 
 
 
 
 
 
Total assets
51,336
(1)
(16)
(1)
51,318
 
 
 
 
 
 
Equity
 
 
 
 
 
Other reserves
10,185
1
(21)
2
10,167
Equity attributable to Bayer AG stockholders
18,469
1
(21)
2
18,451
 
18,569
1
(21)
2
18,551
 
 
 
 
 
 
Noncurrent liabilities
 
 
 
 
 
Provisions for pensions and other post-employment benefits
9,373
(127)
–
–
9,246
Other provisions
1,986
125
–
–
2,111
Deferred taxes
938
–
(3)
–
935
 
19,668
(2)
(3)
–
19,663
Current liabilities
 
 
 
 
 
Financial liabilities
2,570
–
–
(2)
2,568
Trade accounts payable
4,295
–
11
(1)
4,305
Other liabilities
1,318
–
(3)
–
1,315
 
13,099
–
8
(3)
13,104
 
 
 
 
 
 
Total equity and liabilities 
51,336
(1)
(16)
(1)
51,318
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Notes
3. Effects of new financial reporting standards
The following new standards had no impact, or no material impact, on the presentation of the Group financial position 
or results of operations, or on earnings per share:
IFRS 10 (Consolidated Financial Statements) sets forth the requirements for the preparation and presentation of con­
solidated financial statements and supersedes IAS 27 (Consolidated and Separate Financial Statements) and SIC-12 
(Consolidation – Special Purpose Entities). The standard defines a uniformly applicable control concept for all company 
forms to serve as the basis for determining which companies are to be fully consolidated. Control is only deemed to 
­exist if Bayer AG is exposed, or has rights, to variable returns from its involvement with a company and has the ability 
to use its power over that company to affect the amount of that company’s returns. IFRS 10 was applied for the first time 
retrospectively in compliance with the transitional provisions.
IFRS 12 (Disclosure of Interests in Other Entities) prescribes the information to be disclosed in the notes to the financial 
statements about interests in subsidiaries, associates, joint arrangements and structured entities. 
Accounting Changes: Consolidated Statement of Cash Flows 2012
[Table 4.12]
2012
 
 
 
 
Before 
accounting 
changes
Accounting changes
 
 
 
 
After  
accounting 
changes
 
 
 
IAS 19R  
(2011)
IFRS 11
 
Transition to 
accounting for 
share in assets 
and liabilities
 
 
Transition to 
equity method
 
€ million
€ million
€ million
€ million
€ million
Income after income taxes
2,496
(44)
2
(1)
2,453
Income taxes
752
(29)
–
–
723
Financial result
712
70
(29)
(1)
752
Depreciation, amortization and impairments
2,960
–
28
–
2,988
Change in pension provisions
(542)
(39)
–
–
(581)
Gross cash flow
4,599
(42)
1
(2)
4,556
Decrease (increase) in inventories
(674)
–
(5)
(1)
(680)
Decrease (increase) in trade accounts receivable
(452)
–
–
(3)
(455)
(Decrease) increase in trade accounts payable
539
–
4
7
550
Changes in other working capital, other non-cash items
520
42
(4)
1
559
Net cash provided by (used in) operating activities  
(net cash flow)
 
4,532
 
–
 
(4)
 
2
 
4,530
 
 
 
 
 
 
Cash outflows for additions to property, plant, equipment  
and intangible assets
 
(1,929)
 
–
 
(1)
 
1
 
(1,929)
Cash inflows from sales of property, plant, equipment  
and other assets 
 
227
 
–
 
3
 
–
 
230
Cash inflows from (outflows for) noncurrent financial assets
(261)
–
3
–
(258)
Cash inflows from (outflows for) current financial assets
1,329
–
(1)
(1)
1,327
Net cash provided by (used in) investing activities
(818)
–
4
–
(814)
Issuances of debt
1,309
–
–
(1)
1,308
Net cash provided by (used in) financing activities
(3,782)
–
–
(1)
(3,783)
 
 
 
 
 
 
Change in cash and cash equivalents due to business activities
(68)
–
–
1
(67)
Cash and cash equivalents at beginning of year
1,770
–
4
(3)
1,771
 
 
 
 
 
 
Change in cash and cash equivalents due to  
exchange rate movements
 
(7)
 
–
 
1
 
–
 
(6)
Cash and cash equivalents at end of year
1,695
–
5
(2)
1,698
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

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Notes
3. Effects of new financial reporting standards
The revised IAS 27 (Separate Financial Statements) is now devoted entirely to accounting for interests in subsidiaries, 
­associates and joint ventures in IFRS separate financial statements.
The application of IFRS 10 (Consolidated Financial Statements), IFRS 12 (Disclosure of Interests in Other Entities)  
and the amendments to IAS 27 (Separate Financial Statements) is mandatory in the E.U. for annual periods beginning 
on or after January 1, 2014. Earlier application is permitted. The Bayer Group has applied these standards since 
­January 1, 2013.
IFRS 13 (Fair Value Measurement) provides a uniform definition of fair value and how it is measured. Fair value is now 
defined as the price that would be received to sell an asset or paid to transfer a liability. IFRS 13 also requires specific 
notes to the consolidated financial statements for assets and liabilities measured at fair value. IFRS 13 was applied for 
the first time prospectively.
The publication of IFRS 13 (Fair Value Measurement) in May 2011 also entailed consequential amendments to the 
­disclosure requirements in IAS 36 (Impairment of Assets). It became necessary to disclose the recoverable amount of 
the cash-generating unit in every reporting period, whether or not an impairment loss was recognized or reversed in 
the period. In May 2013, the IASB amended IAS 36 by issuing “Recoverable Amount Disclosures for Non-Financial As-
sets” to modify this unintentionally broad disclosure requirement. The recoverable amount of a cash-generating unit 
now only has to be disclosed for periods in which an impairment loss has been recognized or reversed. Additional 
­disclosures are required when an impairment loss is recognized or ­reversed and the recoverable amount is based on 
fair value less costs of disposal. The amendments are to be applied for annual periods beginning on or after January 1, 
2014. However, earlier application is permitted where IFRS 13 is ­already applied. The Bayer Group made use of the 
early application provision.
In compliance with the amendment “Presentation of Items of Other Comprehensive Income” to IAS 1 (Presentation of 
Financial Statements), published in June 2011, the items of other comprehensive income are for the first time reported 
separately in the statement of comprehensive income according to whether or not they may subsequently become 
­reclassifiable to profit or loss.
The amendment “Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities” to IFRS 7, 
­issued in December 2011, requires gross and net offsetting amounts reflected in the statement of financial position – 
along with other existing rights of set-off that do not meet the requirements for set-off in the statement of financial 
­position – to be presented in tabular form, unless a different form of presentation is more appropriate.
In May 2012, the IASB published its fourth set of “Annual Improvements to IFRSs.” The amendments address details 
of  the recognition, measurement and disclosure of business transactions and serve to standardize terminology. They 
consist mainly of editorial changes to existing standards.
In June 2013, the IASB issued “Novation of Derivatives and Continuation of Hedge Accounting,” an amendment to  
IAS 39 (Financial Instruments: Recognition and Measurement). The amendment introduces new rules for continuing an 
existing hedge accounting relationship using a novated derivative. A novation occurs when the original parties to a 
­derivative agree that one or more clearing counterparties replace their original counterparty to become the new coun-
terparty to each of the parties. The new rules enable a derivative to remain a hedging instrument in a continuing hedge 
accounting relationship despite its novation if certain criteria are met. The amendment is to be applied for annual 
­periods beginning on or after January 1, 2014. Earlier application is permitted. The Bayer Group made use of the early 
application provision.
Published financial reporting standards that have not yet been applied
The IASB and the IFRS Interpretations Committee have issued the following standards, amendments to standards,  
and interpretations whose application was not yet mandatory for the 2013 fiscal year and is conditional upon their 
endorsement by the European Union.
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Notes
3. Effects of new financial reporting standards
In November 2009, the IASB issued IFRS 9 (Financial Instruments), containing rules for the classification and measure-
ment of financial assets. In October 2010, it issued new requirements for the classification and measurement of finan-
cial liabilities, incorporating them into IFRS 9. The new standard defines two instead of four measurement categories 
for financial assets, with classification to be based partly on the company’s business model and partly on the character-
istics of the contractual cash flows from the respective financial asset. In the case of equity investments that are not 
held for trading, an entity may irrevocably opt at initial recognition to recognize future changes in their fair value out-
side profit or loss in the statement of comprehensive income. In November 2013, the IASB issued further amendments 
under the title “Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39.” The focus of the amendments is on a 
thorough revision of hedge accounting rules with the aim of more appropriately reflecting risk management activities 
in the financial statements. This involves additional disclosures in the notes. The mandatory effective date of January 1, 
2015, previously contained in IFRS 9 was removed. The current version no longer includes a mandatory effective date. 
The amendments are not ­expected to be endorsed by the European Union until the IASB has published all parts of the 
project relating to the accounting treatment of financial instruments.
In December 2011, the IASB issued the amendment “Offsetting Financial Assets and Financial Liabilities” to IAS 32 
­(Financial Instruments: Presentation), clarifying what is meant by “right of set-off in all circumstances” and “simultane-
ous settlement.” The amendment is to be applied for annual periods beginning on or after January 1, 2014. The 
­changes will not have a material impact on the presentation of the Group’s financial position or results of operations.
In October 2012, under the title “Investment Entities,” the IASB issued amendments to IFRS 10, IFRS 12 and IAS 27 for 
investment entities. Such entities are to be exempted from the requirement to consolidate certain subsidiaries accord-
ing to IFRS 10. Instead, they must recognize them at fair value through profit or loss. IFRS 12 introduces additional 
­disclosure requirements for investment entities. The amendments are to be applied for annual periods beginning on or 
after January 1, 2014. The changes will not have a material impact on the presentation of the Group’s financial position 
or results of operations.
In May 2013, the IFRS IC issued the interpretation IFRIC 21 (Levies). The interpretation covers the accounting for gov-
ernment-imposed levies with the exception of income taxes covered by IAS 12 (Income Taxes). It also provides guid-
ance on when to recognize a liability for a levy. The interpretation is to be applied for annual periods beginning on or 
after January 1, 2014. However, it has not yet been endorsed by the European Union. The changes are not expected to 
have a material impact on the presentation of the Group’s financial position or results of operations.
In November 2013, the IASB published narrow-scope amendments to IAS 19 (Employee Benefits) under the title 
­“Defined Benefit Plans: Employee Contributions.” These amendments address the accounting for contributions from 
employees or third parties to defined benefit pension plans where the contributions are a fixed percentage of salary 
throughout the period of employment. Such contributions may be accounted for as a reduction in current ­service cost 
in the period in which the related service was rendered. The amendments are to be applied for annual periods begin-
ning on or after July 1, 2014. Earlier application is permitted. The amendments have not yet been endorsed by the Eu-
ropean Union. The changes are not expected to have a material impact on the presentation of the Group’s ­financial po-
sition or results of operations.
In December 2013, the IASB published the fifth and sixth sets of “Annual Improvements to IFRSs.” The amendments 
­address details of the recognition, measurement and disclosure of business transactions and serve to standardize 
­terminology. They consist mainly of editorial changes to existing standards. They are applicable for annual periods 
­beginning on or after July 1, 2014. Earlier application is permitted. The amendments have not yet been endorsed by the 
­European Union. The Bayer Group is currently evaluating the impact the changes will have on the presentation of its 
­financial position and results of operations.
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Notes
4. Basic principles, methods and critical accounting estimates
4. Basic principles, methods and  
critical accounting estimates
The financial statements of the consolidated companies are prepared according to uniform accounting policies and 
measurement principles. 
The consolidated financial statements of the Group are based on the principle of the historical cost of acquisition, con-
struction or production, with the exception of the items reflected at fair value, such as financial assets held for trading 
or available for sale, and derivatives.
In preparing the consolidated financial statements, the management has to make certain assumptions and estimates 
that may substantially impact the presentation of the Group’s financial position and / or results of operations.
Such estimates, assumptions or the exercise of discretion mainly relate to the useful life of noncurrent assets, the 
­discounted cash flows used for impairment testing and purchase price allocations, and the recognition of provisions, 
including those for litigation-related expenses, pensions and other benefits, taxes, environmental compliance and re-
mediation costs, sales allowances, product liability and guarantees. Essential estimates and assumptions that may 
­affect reporting in the various item categories of the financial statements are described in the following sections of this 
note. Estimates are based on historical experience and other assumptions that are considered reasonable under given 
circumstances. They are continually reviewed but may vary from the actual values.
Changes in accounting policies or measurement principles in light of new or revised standards are applied retrospec-
tively, except as otherwise provided in the respective standard. The income statement for the previous year and the 
opening statement of financial position for that year are adjusted as if the new accounting policies and / or measure-
ment principles had always been applied.
Consolidation
The consolidated financial statements include subsidiaries, joint arrangements and associates. 
Subsidiaries are companies over which Bayer AG is currently able to exercise power by virtue of existing rights. Power 
means the ability to direct the activities that significantly influence a company’s profitability. Control is therefore only 
deemed to exist if Bayer AG is exposed, or has rights, to variable returns from its involvement with a company and has 
the ability to use its power over that company to affect the amount of that company’s returns. The ability to control an-
other company generally derives from Bayer AG’s direct or indirect ownership of a majority of the voting rights. In the 
case of structured entities, however, control is based on contractual agreements. Inclusion of an entity’s accounts in the 
consolidated financial statements begins when the Bayer Group is able to exercise control over the entity and ceases 
when it is no longer able to do so.
Sales revenues, income and expenses, and gains and losses arising from transactions among the consolidated compa-
nies, along with receivables and liabilities existing between them, are eliminated. Deferred income tax effects are re-
flected in consolidation.
Capital consolidation is performed by offsetting the carrying amounts of subsidiaries against their underlying equity. 
When a majority interest in a company is acquired, its pro-rated equity at the acquisition date is measured using the 
­acquisition method. Identifiable assets and liabilities (including contingent liabilities) are recognized at their fair values 
along with attributable deferred tax assets and liabilities. Any remaining difference to the purchase price is recognized 
as goodwill. The purchase prices of acquired companies domiciled outside the eurozone are translated at the exchange 
rates in effect at the respective dates of acquisition.
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Consolidated Financial Statements
Bayer Annual Report 2013
Notes
4. Basic principles, methods and critical accounting estimates
The purchase of shares from other owners is presented as an equity transaction. The difference between the equity 
­acquired from other owners and the purchase price is therefore directly offset against equity.
Joint operations and joint ventures are based on joint arrangements. A joint arrangement is deemed to exist if the 
Bayer Group through a contractual agreement jointly controls activities managed with a third party. Joint control is only 
deemed to exist if decisions regarding the relevant activities require the unanimous consent of the parties sharing 
control. 
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to 
the assets, and obligations for the liabilities, relating to the arrangement. The Bayer Group recognizes the share of 
­assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with its rights and 
­obligations. 
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the 
net assets of the arrangement. Joint ventures are accounted for using the equity method.
Associates over which Bayer AG exerts significant influence, generally through an ownership interest between 20% 
and 50%, also are accounted for using the equity method. 
The carrying amount of a company accounted for using the equity method is adjusted annually by the change in its 
­equity corresponding to Bayer’s percentage interest in the company. Differences arising upon first-time inclusion using 
the equity method are accounted for according to full-consolidation principles. Bayer’s share of changes in these 
­companies’ equities recognized in profit or loss – including impairment losses recognized on goodwill – are reflected in 
equity-method income / loss. Intercompany profits and losses for these companies were not material in either 2013 or 2012.
Companies that do not have a material impact on the Group’s financial position or results of operations, either  
individ­ually or in aggregate, are accounted for at cost of acquisition less any impairment losses. 
Foreign currency translation
The financial statements of the individual companies for inclusion in the consolidated financial statements are prepared 
in their respective functional currencies. A company’s functional currency is that of the economic environment in which 
it primarily generates and expends cash. The majority of consolidated companies carry out their activities autonomous-
ly from a financial, economic and organizational point of view, and their functional currencies are therefore the respec-
tive local currencies.
In the separate financial statements of the individual consolidated companies, receivables and liabilities in currencies 
other than the respective functional currency are translated at closing rates. Related exchange differences are recog-
nized in profit or loss as exchange gains or losses under other financial income and expenses.
In the consolidated financial statements, the assets and liabilities of companies outside the eurozone at the start and 
end of the year are translated into euros at closing rates. All changes occurring during the year and all income and 
­expense items and cash flows are translated into euros at average monthly rates. Equity components are translated at 
the historical exchange rates prevailing at the respective dates of their first-time recognition in Group equity. 
The exchange differences arising between the resulting amounts and those obtained by translating at closing rates are 
recognized outside profit or loss as “Exchange differences on translation of operations outside the eurozone” (in other 
comprehensive income) or “Exchange differences” (in the tables in the notes). When a company is deconsolidated, 
such exchange differences are reclassified from equity to profit or loss.
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Bayer Annual Report 2013
Notes
4. Basic principles, methods and critical accounting estimates
The exchange rates for major currencies against the euro varied as follows:
Subsidiaries whose functional currencies have experienced a cumulative inflation rate of more than 100% over the past 
three years apply the rules of IAS 29 (Financial Reporting in Hyperinflationary Economies). Gains and losses incurred 
upon adjusting the carrying amounts of non-monetary assets and liabilities and the items of the statement of compre-
hensive income for inflation are recognized in other operating income and expenses. The only company to apply infla-
tion accounting in 2013 was Bayer S.A., Venezuela. The exchange rate used for translation was the year-end rate calcu-
lated on the basis of the official exchange rate for the Venezuelan bolivar (VEF) against the U.S. dollar, converted at the 
respective USD / EUR rate.
Net sales and other operating income
All revenues derived from the selling of products or rendering of services or from licensing agreements are recognized 
as sales. Other operational revenues are recognized as other operating income. Sales are recognized in profit or loss 
when the significant risks and rewards of ownership of the goods have been transferred to the customer, the company 
retains neither continuing managerial involvement to the degree usually associated with ownership nor effective con-
trol over the goods sold, the amount of revenue and costs incurred or to be incurred can be measured reliably, and it is 
sufficiently probable that the economic benefits associated with the transaction will flow to the company.
Sales are stated net of sales taxes, other taxes and sales deductions at the fair value of the consideration received or to 
be received. Sales deductions are estimated amounts for rebates, cash discounts and product returns. They are deduct-
ed at the time the sales are recognized, and appropriate provisions are recorded. Sales deductions are estimated pri-
marily on the basis of historical experience, specific contractual terms and future expectations of sales development. It 
is unlikely that factors other than these could materially affect sales deductions in the Bayer Group. Adjustments to pro-
visions made in prior periods for rebates, cash discounts or product returns were of secondary importance for income 
before income taxes in the years under report.
Provisions for rebates in 2013 amounted to 2.8% of total net sales (2012: 2.4%). In addition to rebates, Group compa-
nies offer cash discounts for prompt payment in some countries. Provisions for cash discounts as of December 31, 2013 
and December 31, 2012 were less than 0.1% of total net sales for the respective year.
Sales are reduced by the amount of the provisions for expected returns of defective goods or of saleable products that 
may be returned under contractual arrangements. The net sales are reduced on the date of sale or on the date when 
the amount of future returns can be reasonably estimated. Provisions for product returns in 2013 amounted to 0.3% of­ 
­total net sales (2012: 0.3%). If future product returns cannot be reasonably estimated and are significant to a sales 
transaction, the revenues and the related cost of sales are deferred until a reasonable estimate can be made or the right 
to return the goods has expired.
Exchange Rates for Major Currencies
[Table 4.13]
 
Closing rate
Average rate
€ 1 /
 
2012
2013
2012
2013
ARS
Argentina
6.48
8.99
5.83
7.21
BRL
Brazil
2.69
3.26
2.50
2.85
CAD
Canada
1.31
1.47
1.28
1.37
CHF
Switzerland
1.21
1.23
1.21
1.23
CNY
China
8.22
8.35
8.10
8.16
GBP
United Kingdom
0.82
0.83
0.81
0.85
JPY
Japan
113.61
144.72
102.38
129.20
MXN
Mexico
17.18
18.07
16.90
16.93
USD
United States
1.32
1.38
1.28
1.33
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

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Bayer Annual Report 2013
Notes
4. Basic principles, methods and critical accounting estimates
Some of the Bayer Group’s revenues are generated on the basis of licensing agreements under which third parties have 
been granted rights to products and technologies. Payments received, or expected to be received, that relate to the sale 
or outlicensing of technologies or technological expertise are recognized in profit or loss as of the effective date of the 
respective agreement if all rights relating to the technologies and all obligations resulting from them have been relin-
quished under the contract terms. However, if rights to the technologies continue to exist or obligations resulting from 
them have yet to be fulfilled, the payments received are deferred accordingly. Upfront payments and similar non-re-
fundable payments received under these agreements are recorded as other liabilities and recognized in profit or loss 
over the estimated performance period stipulated in the agreement. 
License or research and development collaboration agreements may consist of multiple elements and provide for vary-
ing consideration terms, such as upfront payments and milestone or similar payments. They therefore have to be as-
sessed to determine whether sales revenues should be recognized for individually delivered elements of such arrange-
ments, i.e. for more than one unit of account. The condition for separate revenue recognition for individual units of 
account is that each element has value to the customer on a stand-alone basis, the fair value of the undelivered goods 
or unrendered services can be reliably determined, and delivery or performance of the as yet undelivered element(s) is 
probable and substantially within the control of the Bayer Group. 
Other operating income may also arise from the exchange of intangible assets. The amount recognized is generally 
based on the fair value of the assets given up, calculated using the discounted cash flow method. If the assets given up 
are internally generated, the gain from the exchange generally equals their fair value. 
Research and development expenses
For accounting purposes, research expenses are defined as costs incurred for current or planned investigations under-
taken with the prospect of gaining new scientific or technical knowledge and understanding. Development expenses 
are defined as costs incurred for the application of research findings or specialist knowledge to plans or designs for the 
production, provision or development of new or substantially improved products, services or processes, respectively, 
prior to the commencement of commercial production or use.
Research and development expenses are incurred in the Bayer Group for in-house research and development activities 
as well as numerous research and development collaborations and alliances with third parties.
Research and development expenses mainly comprise the costs for active ingredient discovery, clinical studies, 
­research and development activities in the areas of application technology and engineering, field trials, regulatory 
­approvals and approval extensions.
Research costs cannot be capitalized. The conditions for capitalization of development costs are closely defined: an in-
tangible asset must be recognized if, and only if, there is reasonable certainty of receiving future cash flows that will 
cover an asset’s carrying amount. Since our own development projects are often subject to regulatory approval proce-
dures and other uncertainties, the conditions for the capitalization of costs incurred before receipt of approvals are not 
normally satisfied.
In the case of research and development collaborations, a distinction is generally made between payments on contract 
signature, upfront payments, milestone payments and cost reimbursements for work performed. If an intangible asset 
(such as the right to the use of an active ingredient) is acquired in connection with any of these payment obligations, 
the respective payment is capitalized even if it is uncertain whether further development work will ultimately lead to 
the production of a saleable product. Reimbursements of the cost of research or development work are recognized in 
profit or loss. 
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Bayer Annual Report 2013
Notes
4. Basic principles, methods and critical accounting estimates
GOODWILL
In a business combination, goodwill is capitalized at the acquisition date. It is measured at its cost of acquisition, 
which is the excess of the acquisition price for shares in a company over the acquired net assets. The net assets are 
the balance of the fair values of the acquired identifiable assets and the assumed liabilities and contingent liabilities.
Goodwill is not amortized, but tested annually for impairment. Details of the annual impairment tests are given un-
der “Procedure used in global impairment testing and its impact.” Once an impairment loss has been recognized on 
goodwill, it is not reversed in subsequent periods.
Other intangible assets
An “other intangible asset” is an identifiable non-monetary asset without physical substance, other than goodwill (such 
as a patent, a trademark or a marketing right). It is capitalized if the future economic benefits attributable to the asset 
will probably flow to the company and the cost of acquisition or generation of the asset can be reliably measured.
Other intangible assets are recognized at the cost of acquisition or generation. Those with a determinable useful life 
are amortized accordingly on a straight-line basis over a period of up to 30 years, except where their actual depletion 
demands a different amortization pattern. Determination of the expected useful lives of such assets and the amortiza-
tion patterns is based on estimates of the period for which they will generate cash flows. An impairment test is per-
formed if there is an indication of possible impairment.
Other intangible assets with an indefinite life (such as the Bayer Cross trademark) and intangible assets not yet avail-
able for use (such as research and development projects) are not amortized, but tested annually for impairment. 
Any impairment losses are recognized in profit or loss. If the reasons for a previously recognized impairment loss no 
longer apply, the impairment loss is reversed provided that the reversal does not cause the carrying amount to exceed 
the (amortized) cost of acquisition or construction. 
Property, plant and equipment
Property, plant and equipment is carried at the cost of acquisition or construction and depreciated over its estimated 
useful life. An impairment loss is recognized in addition if an asset’s recoverable amount falls below its carrying 
amount.
The cost of acquisition comprises the acquisition price plus ancillary and subsequent acquisition costs, less any reduc-
tion received on the acquisition price. The cost of self-constructed property, plant and equipment comprises the direct 
cost of materials, direct manufacturing expenses, and appropriate allocations of material and manufacturing over-
heads. Where an obligation exists to dismantle or remove an asset or restore a site to its former condition at the end of 
its useful life, the present value of the related future payments is capitalized along with the cost of acquisition or con-
struction upon completion and a corresponding liability is recognized. 
If the construction phase of property, plant or equipment extends over a substantial period of time, the interest in-
curred on borrowed capital up to the date of completion is capitalized as part of the cost of acquisition or construction 
in accordance with IAS 23 (Borrowing Costs).
Costs for regular, comprehensive maintenance work (such as the major overhaul of a technical facility) are capitalized 
as a separate component if they satisfy the recognition criteria. 
Property, plant and equipment is depreciated by the straight-line method over an asset’s useful life, except where 
­depreciation based on actual depletion is more appropriate.
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The following depreciation periods are applied throughout the Group:
Significant asset components with different useful lives are accounted for and depreciated separately.
If there are indications that an individual item of property, plant and equipment may be impaired, the recoverable 
amount is compared to the carrying amount. If the recoverable amount is less than the carrying amount, an impairment 
loss is recognized for the difference. If the reasons for a previously recognized impairment loss no longer apply, the im-
pairment loss is reversed provided that the reversal does not cause the carrying amount to exceed the cost of acquisi-
tion or construction less depreciation.
When assets are sold, closed down or scrapped, the difference between the net proceeds and the net carrying amount 
of the assets is recognized as a gain or loss in other operating income or expenses, respectively.
Real estate held for investment comprises land and buildings not being used for operational or administrative purpos-
es. It is measured using the cost model. The fair value of the investment property reported in the Notes is determined 
using the discounted cash flow method, comparisons with the current market values of similar properties, or reports 
from external experts.
Leasing
A lease is an agreement whereby the lessor assigns to the lessee the right to use an asset for an agreed period of time 
in return for a payment or series of payments. Leases are classified as either finance or operating leases. Leasing trans-
actions that transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee are 
treated as finance leases. All other leasing agreements are classified as operating leases. Whether an agreement 
­constitutes a lease or contains a lease is determined upon inception of the lease.
Where the Bayer Group is the lessee in a finance lease, the leased asset is capitalized at the lower of the fair value of 
the asset and the present value of the minimum lease payments at the beginning of the lease term and simultaneously 
recognized under financial liabilities. The minimum lease payments are divided into the principal portion of the remain-
ing obligation and the financing costs, which are determined using the effective-interest method. The leased asset is 
depreciated by the straight-line method over the shorter of its estimated useful life or the lease term.
Where the Bayer Group is the lessee in an operating lease, the lease payments are expensed. Where it is the lessor, the 
lease payments received are recognized in profit or loss. The leased asset continues to be recognized under property, 
plant and equipment in the Bayer Group’s statement of financial position.
Useful Life of Property, Plant and Equipment
[Table 4.14]
Buildings 
20 to 50 years
Outdoor infrastructure
10 to 20 years
Storage tanks and pipelines
10 to 20 years
Plant installations
6 to 20 years
Machinery and equipment
6 to 12 years
Furniture and fixtures
4 to 10 years
Vehicles
4 to 8 years
Computer equipment
3 to 5 years
Laboratory and research facilities
3 to 5 years
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Cash and cash equivalents
Cash and cash equivalents comprise cash, checks received, and balances with banks and companies. Cash equivalents 
are highly liquid short-term financial investments that are subject to an insignificant risk of changes in value, are easily 
convertible into a known amount of cash and have a maturity of three months or less from the date of acquisition or in-
vestment.
Financial assets
Financial assets comprise loans and receivables, acquired equity and debt instruments, cash and cash equivalents, and 
derivatives with positive fair values. 
They are recognized and measured in accordance with IAS 39 (Financial Instruments: Recognition and Measurement). 
Accordingly, financial assets are recognized in the consolidated financial statements if the Bayer Group has a contrac-
tual right to receive cash or other financial assets from another entity. Regular-way purchases and sales of financial 
­assets are generally posted on the settlement date. Financial assets are initially recognized at fair value plus transaction 
costs. The transaction costs incurred for the purchase of financial assets held at fair value through profit or loss are 
­expensed immediately. Interest-free or low-interest receivables are initially reflected at the present value of the expect-
ed future cash flows. For purposes of subsequent measurement, financial assets are allocated to the following catego-
ries according to IAS 39, with different measurement rules applying to each category. Allocation is made at the date of 
first-time ­recognition:
Financial assets held at fair value through profit or loss comprise those financial assets that are held for trading. Such  
financial assets were mainly acquired for purposes of liquidity management with the intention of reselling them within 
a short time. Receivables from forward commodity contracts and receivables from other derivatives that are included in 
other financial assets are also allocated to this category, except where hedge accounting is used. Changes in the fair 
value of financial assets in this category are recognized in profit or loss when the increase or decrease in fair value 
­occurs.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an 
active market. They are accounted for at amortized cost using the effective interest method. This category comprises 
trade accounts receivable, the loans and receivables included in other financial assets, the additional financial receiv-
ables reflected in other receivables, and cash and cash equivalents. Interest income from items assigned to this catego-
ry is determined using the effective interest method.
Held-to-maturity financial assets are non-derivative financial assets, with fixed or determinable payments, that the Bayer 
Group is willing and able to hold until maturity. They are accounted for at amortized cost using the effective interest 
method. Held-to-maturity financial investments are recognized in other financial assets.
Available-for-sale financial assets are those non-derivative financial assets that are not assigned to any of the above 
­categories. They mainly include equity instruments, such as shares, and debt instruments not to be held to maturity 
that are included in other financial assets. After their first-time recognition, available-for-sale financial assets are 
­measured at fair value and any unrealized gains or losses are recognized outside profit or loss in equity. These are only 
reclassified to profit or loss if the assets are sold or if there are objective indications of impairment, in which case the 
accumulated loss is recognized in profit or loss. An objective indication of impairment is a significant or prolonged 
­decrease in the fair value of an equity instrument to below its acquisition cost. Previously recognized impairment losses 
are reversed if the reasons for them no longer apply. Impairment loss reversals for equity instruments are recognized 
outside profit or loss, while those for debt instruments are recognized in profit or loss. Where possible, a fair value for 
equity and debt securities is derived from market data. Financial assets for which no market price is available and 
whose fair value cannot be reasonably estimated are recognized at cost less any impairment losses. 
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If there are substantial and objective indications of a decline in the value of loans and receivables, held-to-maturity 
financial assets or available-for-sale financial assets, an impairment test is performed. Indications of possible impair-
ment include a high probability of insolvency, a significant deterioration in credit standing, a material breach of 
­contract, operating losses reported by a company over several years, a reduction in market value, the financial re-
structuring of the debtor, or the disappearance of an active market for the asset.
In the case of loans and receivables, and held-to-maturity financial assets, an impairment test is performed in which 
the carrying amount is compared to the present value of the expected future cash flows, discounted at the original 
effective interest rate. If the carrying amount exceeds the present value, an impairment loss is recognized for the 
­difference between the two amounts. If the reasons for previously recognized impairment losses no longer apply, the 
impairment losses are reversed provided that this does not cause the carrying amounts to exceed the amortized 
cost of acquisition.
Financial assets are derecognized when contractual rights to receive cash flows from the financial assets expire or 
the financial assets are transferred together with all material risks and benefits.
Derivatives
The Bayer Group uses derivatives – such as forward exchange contracts and interest-rate swaps – to mitigate the risk of 
changes in exchange rates, interest rates and commodity prices. Derivatives are recognized at the trade date. 
Contracts concluded in order to receive or deliver non-financial goods for the company’s own purposes are not ac-
counted for as derivatives but treated as pending transactions. Where embedded derivatives are identified that are re-
quired to be separated from the pending transactions, they are accounted for separately. To take advantage of market 
opportunities or cover possible peak demand, a non-material volume of transactions may be entered into for which 
the possibility of immediate resale cannot be excluded. Such transactions are allocated to separate portfolios upon 
­acquisition and accounted for as derivatives according to IAS 39. 
Derivatives are carried at fair value. Positive fair values at the end of the reporting period are reflected in financial as-
sets, negative fair values in financial liabilities. Changes in the fair values of these derivatives are recognized directly 
in profit or loss except where hedge accounting is used. Changes in the fair values of forward exchange contracts and 
currency options serving as hedges of items in the statement of financial position are reflected in other financial in-
come and expenses as exchange gains or losses, while changes in the values of interest-rate swaps and interest-rate 
options are recognized in interest income or expense. Changes in the fair values of commodity futures and options, 
and of forward exchange contracts used to hedge forecasted transactions in foreign currencies, are recognized in 
­other operating income or expenses.
Changes in the fair values of derivatives designated as fair-value hedges and the adjustments in the carrying amounts 
of the underlying transactions are recognized in profit or loss. 
Changes in the fair values of the effective portion of derivatives designated as cash flow hedges are initially recognized 
outside profit or loss in accumulated other comprehensive income. They are reclassified to profit or loss when the un-
derlying transaction is realized. If such a derivative is sold or ceases to qualify for hedge accounting, the change in its 
value continues to be recognized in accumulated other comprehensive income until the forecasted transaction is 
­realized. If the forecasted transaction is no longer probable, the amount previously recognized in accumulated other 
comprehensive income has to be reclassified to profit or loss. The ineffective portion of gains or losses on derivatives 
designated as cash flow hedges is recognized either in other operating income or expenses or in the financial result, 
depending on the type of underlying transaction.
The income and expense reflected in the financial result pertaining to the derivatives and the underlying transactions 
are shown separately. Income and expense are not offset.
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Inventories
In accordance with IAS 2 (Inventories), inventories encompass assets consumed in production or in the rendering of 
services (raw materials and supplies), assets in the production process for sale (work in process), goods held for sale in 
the ordinary course of business (finished goods and goods purchased for resale), and advance payments on inventories. 
Inventories are recognized at their cost of acquisition or production – calculated by the weighted-average method – or 
at their net realizable value, whichever is lower. The net realizable value is the estimated selling price in the ordinary 
course of business less estimated cost to complete and selling expenses.
Income taxes
Income taxes comprise the taxes levied on taxable income in the individual countries along with changes in deferred 
tax assets and liabilities that are recognized in profit or loss. The income taxes recognized are reflected at the amounts 
likely to be payable under the statutory regulations in force, or already enacted in relation to future periods, at the end 
of the reporting period.
In compliance with IAS 12 (Income Taxes), deferred taxes are recognized for temporary differences between the 
­carrying amounts of assets and liabilities in the statement of financial position prepared according to IFRS and their tax 
bases. Deferred taxes are also recognized for consolidation measures and for tax loss carryforwards and tax credits that 
are likely to be usable.
Deferred tax assets relating to deductible temporary differences, tax credits or tax loss carryforwards are recognized 
where it is sufficiently probable that taxable income will be available in the future to enable them to be used. Deferred 
tax liabilities are recognized on temporary differences taxable in the future. Deferred taxes are calculated at the rates 
which – on the basis of the statutory regulations in force, or already enacted in relation to future periods, as of the 
­closing date – are expected to apply in the individual countries at the time of realization. Deferred tax assets and de-
ferred tax liabilities are offset if they relate to income taxes levied by the same taxation authority and Bayer has a legal 
right to settle on a net basis. Material effects of changes in tax rates or tax law on deferred tax assets and liabilities are 
generally accounted for in the period in which the changes are enacted. Such effects are recognized in profit or loss ex-
cept where they relate to deferred taxes that were recognized outside profit or loss, in which case they are recognized 
in other comprehensive income. 
Deferred and current taxes are recognized in profit or loss unless they relate to items recognized outside profit or loss 
in other comprehensive income, in which case they, too, are recognized in other comprehensive income. 
The probability that deferred tax assets resulting from temporary differences or loss carryforwards can be used in the 
future is the subject of forecasts by the individual consolidated companies regarding their future earnings situation and 
other parameters. 
Deferred tax liabilities are recognized on planned dividend payments by subsidiaries. Where no dividend payment is 
planned for the foreseeable future, no deferred tax liability is recognized on the difference between the proportionate 
net assets according to IFRS and the tax base of the investment in the subsidiary.
Provisions for pensions and other post-employment benefits
Within the Bayer Group, post-employment benefits are provided under defined contribution and / or defined benefit 
plans. In the case of defined contribution plans, the company pays contributions to publicly or privately administered 
pension plans on a mandatory, contractual or voluntary basis. Once the contributions have been paid, the company 
has no further payment obligations. The regular contributions constitute expenses for the year in which they are due 
and as such are included in the functional cost items, and thus in EBIT. All other post-employment benefit systems are 
defined benefit plans, which may be either unfunded, i.e. financed by provisions, or funded, i.e. financed through 
­pension funds. 
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The present value of provisions for defined benefit plans and the resulting expense are calculated in accordance with 
IAS 19 (Employee Benefits) by the projected unit credit method. The future benefit obligations are valued by actuarial 
methods and spread over the entire employment period on the basis of specific assumptions regarding beneficiary 
structure and the economic environment. These relate mainly to the discount rate, future salary and pension increases, 
variations in health care costs, and mortality rates.
The discount rates used are calculated from the yields of high-quality corporate bond portfolios in specific currencies 
with cash flows approximately equivalent to the expected disbursements from the pension plans. The uniform discount 
rate derived from this interest-rate structure is thus based on the yields, at the closing date, of a portfolio of “AA” rated 
corporate bonds whose weighted residual maturities approximately correspond to the duration necessary to ­cover the 
entire benefit obligation. 
The fair value of plan assets is deducted from the present value of the defined benefit obligation for pensions and other 
post-employment benefits to determine the net defined benefit liability. The obligations and plan assets are valued at 
regular intervals of not more than three years. Comprehensive actuarial valuations for all major plans are performed 
annually as of December 31. Plan assets in excess of the benefit obligation are reflected in other receivables, subject to 
the asset ceiling specified in IAS 19 (Employee Benefits).
The balance of all income and expenses relating to defined benefit plans, except the net interest on the net liability, is 
recognized in EBIT. The net interest is reflected in the financial result under other financial income and expenses. 
The effects of remeasurements of the net defined benefit liability are reflected in the statement of comprehensive in-
come as other comprehensive income. They consist of actuarial gains and losses, the return on plan assets and changes 
in the effects of the asset ceiling, less the respective amounts included in net interest. Deferred taxes relating to the ef-
fects of remeasurements are also recognized in other comprehensive income.
Other provisions
Other provisions are recognized for present legal and constructive obligations arising from past events that will proba-
bly give rise to a future outflow of resources, provided that a reliable estimate can be made of the amount of the obliga-
tions.
Other provisions are measured in accordance with IAS 37 (Provisions, Contingent Liabilities and Contingent Assets) or, 
where applicable, IAS 19 (Employee Benefits). Where the cash outflow to settle an obligation is expected to occur after 
one year, the provision is recognized at the present value of the expected cash outflow. Claims for reimbursements 
from third parties are separately reflected in other receivables if their realization is virtually certain. 
If the projected obligation declines as a result of a change in the estimate, the provision is reversed by the correspond-
ing amount and the resulting income recognized in the operating expense item(s) in which the original charge was rec-
ognized.
To enhance the information content of the estimates, certain provisions that could have a material effect on the finan-
cial position or results of operations of the Group are selected and tested for their sensitivity to changes in the underly-
ing parameters. To reflect uncertainty about the likelihood of the assumed events actually occurring, the impact of a 
five-percentage-point change in the probability of occurrence is examined in each case. This analysis has not shown 
other provisions to be materially sensitive.
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Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future 
taxable income. Given the wide range of international business relationships and the long-term nature and complexity 
of existing contractual agreements, differences arising between the actual results and the assumptions made, or future 
changes to such assumptions, could necessitate adjustments to tax income and expense in future periods. The Group 
establishes provisions for taxes, based on reasonable estimates, for liabilities to the tax authorities of the respective 
countries that are uncertain as to their amount and the probability of their occurrence. The amount of such provisions 
is based on various factors, such as experience with previous tax audits and differing legal interpretations by the tax-
able entity and the responsible tax authority.
Provisions for environmental protection are recorded if future cash outflows are likely to be necessary to ensure com-
pliance with environmental regulations or to carry out remediation work, such costs can be reliably estimated and no 
future benefits are expected from such measures. 
Estimating the future costs of environmental protection and remediation involves many uncertainties, particularly with 
regard to the status of laws, regulations and the information available about conditions in the various countries and at 
the individual sites. Significant factors in estimating the costs include previous experiences in similar cases, the conclu-
sions in expert opinions obtained regarding the Group’s environmental programs, current costs and new developments 
affecting costs, management’s interpretation of current environmental laws and regulations, the number and financial 
position of third parties that may become obligated to participate in any remediation costs on the basis of joint liability, 
and the remediation methods likely to be deployed. Changes in these assumptions could impact future reported results.
Taking into consideration experience gained to date regarding environmental matters of a similar nature, provisions 
are believed to be adequate based upon currently available information. Given the difficulties inherent in estimating 
­liabilities in the businesses in which the Group operates, especially those for which the risk of environmental damage is 
greater in relative terms (CropScience and MaterialScience), it remains possible that material additional costs will be 
incurred beyond the amounts accrued. It may transpire during remediation work that additional expenditures are nec-
essary over an extended period and that these exceed existing provisions and cannot be reasonably estimated. 
Provisions for restructuring only cover expenses that arise directly from restructuring measures, are necessary for re-
structuring and are not related to future business operations. Such expenses include severance payments to employees 
and compensation payments in respect of rented property that can no longer be used.
Restructuring measures may include the sale or termination of business units, site closures, relocations of business 
­activities or fundamental reorganizations of business units. 
The respective provisions are established when a detailed restructuring plan has been drawn up, resolved upon by the 
responsible decision-making level of management and communicated to the employees and / or their representatives. 
Provisions for restructuring are established at the present value of future disbursements.
Trade-related provisions are recorded mainly for the granting of rebates or discounts, product returns, or obligations 
in respect of goods or services already received but not yet invoiced.
As a global company with a diverse business portfolio, the Bayer Group is exposed to numerous legal risks, particular-
ly in the areas of product liability, competition and antitrust law, patent disputes and environmental matters. Provi-
sions for litigations are recorded in the statement of financial position in respect of pending or future litigations, sub-
ject to a case-by-case examination. Such legal proceedings are evaluated on the basis of the available information, 
including that from legal counsel acting for the Group, to assess potential outcomes. Where it is more likely than not 
that a present obligation arising out of legal proceedings will result in an outflow of resources, a provision is recorded 
in the amount of the present value of the expected cash outflows if these are considered to be reliably measurable. 
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These provisions cover the estimated payments to plaintiffs, court fees, attorney costs and the cost of potential settle-
ments. The evaluation is based on the current status of the litigations at the end of each reporting period and includes 
an assessment of whether the criteria for recording a provision are met and, if so, the amount of the provision to be 
recorded. Adjusting events are reflected up to the date of preparation of the consolidated financial statements.
Litigation and other judicial proceedings generally raise complex issues and are subject to many uncertainties and 
complexities including, but not limited to, the facts and circumstances of each particular case, the jurisdiction in which 
each suit is brought and differences in applicable law. The outcome of currently pending and future proceedings there-
fore cannot be predicted. As a result of a judgment in court proceedings or the conclusion of a settlement, the Bayer 
Group may incur charges in excess of presently established provisions and related insurance coverage.
Personnel-related provisions are mainly those recorded for annual bonus payments, variable one-time payments, 
­individual performance awards, long-service awards, severance payments in connection with early retirement arrange-
ments, surpluses on long-term accounts and other personnel costs. Obligations under stock-based compensation 
­programs that provide for awards payable in cash are also included here.
Financial liabilities
Financial liabilities comprise primary financial liabilities and negative fair values of derivatives. 
Primary financial liabilities are initially recognized in the consolidated financial statements at fair value if the Bayer 
Group has a contractual obligation to transfer cash or other financial assets to another party. In subsequent periods, 
such liabilities are measured at amortized cost using the effective interest method. 
Financial liabilities are derecognized when the contractual obligation is discharged or canceled, or has expired.
Other receivables and liabilities
Accrued items and other non-financial assets and liabilities are carried at amortized cost. They are amortized to income 
by the straight-line method or according to performance of the underlying transaction.
Grants and subsidies from third parties that serve to promote investment are reflected in the statement of financial po-
sition under other liabilities and amortized to income over the useful lives of the respective investments.
Assets held for sale
Assets held for sale comprise noncurrent assets or disposal groups (together with any liabilities), the carrying amounts 
of which will be realized principally through a highly probable sale transaction within the next twelve months or an 
­already contractually agreed sale transaction, and not through continued use. At the time of their classification as “held 
for sale,” such assets are collectively measured at the lower of the carrying amount and fair value less costs to sell, and 
depreciation or amortization ceases.
Acquisition accounting
Acquired businesses are accounted for using the acquisition method, which requires that the assets acquired and liabil-
ities assumed be recorded at their respective fair values on the date Bayer obtains control. Ancillary acquisition costs 
are recognized as expenses in the periods in which they occur. 
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The application of the acquisition method requires certain estimates and assumptions to be made, especially concern-
ing the fair values of the acquired intangible assets, property, plant and equipment and the liabilities assumed at the 
­acquisition date, and the useful lives of the acquired intangible assets, property, plant and equipment. 
Measurement is based to a large extent on anticipated cash flows. If actual cash flows vary from those used in calculat-
ing fair values, this may materially affect the Group’s future results of operations. In particular, the estimation of dis-
counted cash flows from intangible assets under development, patented and non-patented technologies and brands is 
based on assumptions concerning, for example:
•	 the outcomes of research and development activities regarding compound efficacy, results of clinical trials, etc.,
•	 the probability of obtaining regulatory approvals in individual countries,
•	 long-term sales trends, 
•	 possible selling price erosion due to generic competition in the market following patent expirations,
•	 the behavior of competitors (launch of competing products, marketing initiatives, etc.).
For significant acquisitions, the purchase price allocation is carried out with assistance from independent third-party 
valuation specialists. The valuations are based on the information available at the acquisition date.
In step acquisitions, the fair values of the acquired entity’s assets and liabilities are measured in accordance with IFRS 3 
(Business Combinations) at the date on which control is obtained. Any resulting adjustments to the fair value of the 
­existing interest are recognized in profit or loss. The carrying amount of the assets and liabilities already recognized in 
the statement of financial position is then adjusted accordingly.
Procedure used in global impairment testing and its impact
Impairment tests are performed not only on individual items of intangible assets, property, plant and equipment, but 
also at the level of cash-generating units or groups of cash-generating units. A cash-generating unit is the smallest 
identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other as-
sets or groups of assets. The Bayer Group regards its strategic business entities or groups of strategic business entities, 
as well as certain product families, as cash-generating units and subjects them to global impairment testing. The strate-
gic business entities constitute the second financial reporting level below the segments.
Cash-generating units and unit groups are globally tested if there is an indication of possible impairment. Those to 
which goodwill is allocated are tested at least annually.
Impairment testing involves comparing the carrying amount of each cash-generating unit, unit group or item of intan-
gible assets, property, plant or equipment to the recoverable amount, which is the higher of its fair value less costs to 
sell or value in use. If the carrying amount exceeds the recoverable amount, an impairment loss must be recognized for 
the difference. If a strategic business entity or entity group is found to be impaired, an impairment loss is first recog-
nized on any goodwill allocated to it. Any remaining part of the impairment loss is then allocated among the other as-
sets of the strategic business entity or entity group in proportion to their carrying amounts. The resulting expense is re-
flected in the same functional item of the income statement as the depreciation or amortization of the respective assets. 
If the criteria for a special item are satisfied, the impairment loss is recognized in profit or loss under other operating 
expenses. Income from impairment loss reversals is recognized in other operating income.
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The recoverable amount is generally determined on the basis of the fair value less costs to sell, taking into account the 
present value of the future net cash flows as market prices for the individual units are not normally available. These  
are forecasted on the basis of the Bayer Group’s current planning, the planning horizon normally being three to five 
years. Forecasting involves making assumptions, especially regarding future selling prices, sales volumes and costs. 
Where the recoverable amount is the fair value less costs to sell, the cash-generating unit or unit group is measured 
from the viewpoint of an independent market participant. Where the recoverable amount is the value in use, the cash-
generating unit, unit group or individual asset is measured as currently used. In either case, net cash flows beyond the 
planning period are determined on the basis of long-term business expectations using the respective individual growth 
rates derived from market information. The measurement of fair value less costs to sell is based on unobservable inputs 
(Level 3).
The net cash inflows are discounted at a rate equivalent to the weighted average cost of equity and debt capital.  
To allow for the different risk and return profiles of the Bayer Group’s principal businesses, the after-tax cost of capital 
is calculated separately for each subgroup and a subgroup-specific capital structure is defined by benchmarking 
against comparable companies in the same industry sector. The cost of equity corresponds to the return expected by 
stockholders, while the cost of debt is based on the conditions on which comparable companies can obtain long-term 
financing. Both components are derived from capital market information.
The growth rates applied for impairment testing in 2013 and 2012 and the capital cost factors used to discount the 
­expected cash flows are shown in the following table:
No impairment losses were recognized on goodwill on the basis of the global ­annual impairment testing of the 
cash-generating units and unit groups in 2013 or 2012. Taking into account impairment loss reversals of €13 million 
(2012: €21 million), net impairment losses on intangible assets, property, plant and equipment amounted to €285 mil-
lion (2012: €347 million). Details are provided in Notes [17] and [18].
Although the estimates of the useful lives of certain assets, assumptions concerning the macroeconomic environment 
and developments in the industries in which the Bayer Group operates, and estimates of the discounted future cash 
flows are believed to be appropriate, changes in assumptions or circumstances could require changes in the analysis. 
This could lead to additional impairment losses in the future or – except in the case of goodwill – to reversals of previ-
ously recognized impairment losses if developments are contrary to expectations.
The sensitivity analysis for cash-generating units and unit groups to which goodwill is allocated was based on a 10% 
reduction in future cash flows, a 10% increase in the weighted average cost of capital and a one-percentage-point re-
duction in the long-term growth rate. Bayer concluded that under these conditions the only cash-generating unit in 
which an impairment loss would need to be recognized would be Diphenylmethane Diisocyanate (MDI). The sensitivi-
ties for MDI and – in light of the currently weak market environment for Polycarbonates (PCS) – the cash-generating unit 
PCS are as follows: in the event of a relative 3% (MDI) or 15% (PCS) increase in the weighted average cost of capital, a 
3% (MDI) or 17% (PCS) reduction in future cash flows, a 0.24-percentage-point (MDI) or 1.34-percentage-point (PCS) re-
duction in the long-term ­growth rate or a 0.21-percentage-point (MDI) or 1.11-percentage-point (PCS) reduction in the 
EBITDA margin, the recoverable amount would correspond to the carrying amount of the unit.
Impairment Testing Parameters
[Table 4.15]
 
HealthCare
CropScience
MaterialScience
2012
2013
2012
2013
2012
2013
  
%
%
%
%
%
%
Growth rate
– 2.0 – 0.0
0.0
1.7 – 2.9
1.3 – 2.8
0.0 – 2.0
0.0 – 1.5
After-tax cost of capital
5.6
6.5
6.7
7.3
6.9
7.4
Pre-tax cost of capital
7.2 – 10.1
9.0 – 9.3
8.3 – 9.4
8.7 – 9.8
8.8 – 9.9
9.6 – 10.5
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

259
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
5. Segment reporting
5. Segment reporting
At Bayer the Board of Management, as the chief operating decision maker, allocates resources to the operating seg-
ments and assesses their performance. The reportable segments and regions are identified, and the disclosures select-
ed, in line with the internal financial reporting system (management approach) and based on the Group accounting 
­policies outlined in Note [4].
As of December 31, 2013, the Bayer Group comprised three subgroups, with operations subdivided into strategic busi-
ness entities known as divisions (HealthCare), business groups (CropScience) or business units (MaterialScience). 
Their activities are aggregated into four reportable segments according to economic characteristics, products, produc-
tion processes, customer relationships, methods of distribution and regulatory environment.
The segments’ activities are as follows:
Business activities that cannot be allocated to any other segment are reported under “All other segments.” These 
­include primarily the services provided by the service areas: Business Services, Technology Services and Currenta.
Holding companies’ activities, the elimination of intersegment sales, and higher or lower expenses for Group-wide 
long-term stock-based compensation arising from fluctuations in the performance of Bayer stock are presented in our 
segment reporting as “Corporate Center and Consolidation.”
The reconciliation in the table “Key Data by Region” eliminates interregional items and transactions and reflects in-
come, expenses, assets and liabilities not allocable to geographical areas, particularly those relating to the Corporate 
Center.
Activities of the Segments
[Table 4.16]
Subgroup / Segment
Activities
HealthCare
Pharmaceuticals 
 
Development, production and marketing of prescription pharmaceuticals, such as  
contraceptives, hemophilia treatments, anticoagulants and medicines to treat multiple  
sclerosis, cancer, hypertension and infectious diseases
Consumer Health 
 
 
Development, production and marketing of over-the-counter medications, dermatology products, 
nutritional supplements, veterinary medicines and animal grooming products; diagnostic  
systems such as blood glucose meters; medical products such as injection systems and contrast 
media for diagnostic procedures
CropScience
CropScience 
 
Development, production and marketing of a comprehensive product portfolio in the areas  
of seeds and plant traits; crop protection; and for gardens, the green industry and non- 
agricultural pest control
MaterialScience
MaterialScience 
 
Development, production and marketing of high-tech polymer materials in the areas  
of polyurethanes, polycarbonates, coating and adhesive raw materials and functional films;  
production and marketing of selected inorganic basic chemicals
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

260
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
5. Segment reporting
The segment data are calculated as follows:
•	 The intersegment sales reflect intra-Group transactions effected at transfer prices fixed on an arm’s-length basis.
•	 Although EBIT before special items and EBITDA before special items are not defined in the International Financial 
­Reporting Standards, they represent key performance indicators for the Bayer Group. The special items comprise 
effects that are non-recurring or do not regularly recur or attain similar magnitudes. EBITDA is the EBIT as reported 
in the income statement plus amortization and impairment losses on intangible assets and depreciation and 
­impairment losses on property, plant and equipment, minus impairment loss reversals.
•	 The gross cash flow comprises income after taxes, plus income taxes, plus financial result, minus income taxes paid 
or accrued, plus depreciation, amortization and impairment losses, minus impairment loss reversals, plus / minus 
changes in pension provisions, minus gains / plus losses on retirements of noncurrent assets, minus gains from the 
remeasurement of already held assets in step acquisitions. The change in pension provisions includes the elimina-
tion of non-cash components of EBIT. It also contains benefit payments during the year.
•	 The net cash flow is the cash flow from operating activities as defined in IAS 7 (Statement of Cash Flows).
•	 The capital invested and the segment assets include all assets serving the respective segment that are required to 
yield a return on their cost of acquisition. Segment assets include, in addition, assets held for sale where the return 
is covered by the sale proceeds. Similarly, the segment liabilities include the liabilities directly related to assets held 
for sale. Also included in the capital invested and in segment assets are material participating interests of direct 
­relevance to business operations. Intangible assets and property, plant and equipment are included in the capital in-
vested at cost of acquisition or construction throughout their useful lives. Interest-free liabilities are deducted from 
the capital invested, which is stated as of December 31.
•	 The CFROI – a measure of the return on the capital employed – is the difference between the gross cash flow and the 
cost of reproducing depletable assets, divided by the average capital invested for the year. 
•	 The equity items reflect the earnings and carrying amounts of companies accounted for using the equity method.
•	 Since financial management of Group companies is carried out centrally by Bayer AG, financial liabilities are not 
­directly allocated among the segments. Consequently, the liabilities shown for the individual segments do not 
­include financial liabilities. These are included in the reconciliation.
•	 The number of employees on either permanent or fixed-term contracts is stated in full-time equivalents (FTE), with 
part-time employees included on a pro-rated basis in line with their contractual working hours. The figures do not 
include apprentices. 
Effects of the first-time application of new financial reporting standards and 
other changes in accounting policies on segment reporting
Segment reporting in 2013 was impacted by the first-time application of the financial reporting standards described 
in Note [3] and by the change in the reporting of long-term stock-based compensation. In 2013 Bayer adjusted the 
allocation of the stock-based compensation (long-term incentive – LTI) among the segments to increase the transpar-
ency and information value of its segment reporting and improve planning and steering processes. A normalized 
­expense based on 100% target attainment is now allocated to the respective operating segments. Higher or lower 
expenses arising from fluctuations in the performance of Bayer stock are no longer allocated to the operating seg-
ments but instead reflected in the reconciliation under Corporate Center and Consolidation. The prior-year figures 
are restated accordingly.
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

261
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
5. Segment reporting
The effects of the changes in accounting policies on the key segment data are shown in the following table.
Accounting Changes: Key Data by Segment 2012
[Table 4.17]
2012
Accounting changes
IFRS 11
 
 
Before  
accounting 
changes
 
 
IAS 19R  
(2011)
Transition to 
accounting for 
share in assets 
and liabilities
 
 
Transition to 
equity method
 
 
 
LTI
 
After  
accounting 
changes
 
€ million
€ million
€ million
€ million
€ million
€ million
Net sales
39,760
–
(8)
(11)
–
39,741
Pharmaceuticals
10,803
–
–
(5)
–
10,798
Consumer Health
7,809
–
–
(3)
–
7,806
CropScience
8,383
–
–
–
–
8,383
MaterialScience
11,503
–
(8)
(4)
–
11,491
All other segments
1,259
–
–
1
–
1,260
Corporate Center and consolidation
3
–
–
–
–
3
 
 
 
 
EBIT
3,960
(3)
(27)
(2)
–
3,928
Pharmaceuticals
1,075
(5)
–
1
33
1,104
Consumer Health
1,079
–
–
(1)
23
1,101
CropScience
1,539
1
–
–
16
1,556
MaterialScience
597
2
(27)
(1)
10
581
All other segments
(82)
(1)
–
(1)
9
(75)
Corporate Center and consolidation
(248)
–
–
–
(91)
(339)
EBIT before special items
5,671
(3)
(27)
(2)
–
5,639
Pharmaceuticals
2,298
(5)
–
1
33
2,327
Consumer Health
1,438
–
–
(1)
23
1,460
CropScience
1,526
1
–
–
16
1,543
MaterialScience
629
2
(27)
(1)
10
613
All other segments
35
(1)
–
(1)
9
42
Corporate Center and consolidation
(255)
–
–
–
(91)
(346)
EBITDA before special items
8,284
(3)
1
(2)
–
8,280
Pharmaceuticals
3,203
(5)
–
1
33
3,232
Consumer Health
1,865
–
–
(1)
23
1,887
CropScience
2,008
1
–
–
16
2,025
MaterialScience
1,251
2
1
(1)
10
1,263
All other segments
207
(1)
–
(1)
9
214
Corporate Center and consolidation
(250)
–
–
–
(91)
(341)
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262
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
5. Segment reporting
Reconciliations
The reconciliations of EBITDA before special items, EBIT before special items and EBIT to Group income before income 
­taxes and of the assets and liabilities of the segments to the assets and liabilities, respectively, of the Group are given in 
the following tables:
The reconciliation of segment sales to Group sales is apparent from the table of key data by segment in Note [1].
Reconciliation of Segments’ EBITDA Before Special Items to Group Income Before Income Taxes 
[Table 4.18]
 
2012
2013
 
€ million
€ million
EBITDA before special items of segments
8,621
8,876
EBITDA before special items of Corporate Center
(341)
(475)
EBITDA before special items 
8,280
8,401
Depreciation, amortization and impairment losses before special items of segments
(2,636)
(2,624)
Depreciation, amortization and impairment losses before special items of Corporate Center
(5)
(4)
Depreciation, amortization and impairment losses before special items
(2,641)
(2,628)
EBIT before special items of segments
5,985
6,252
EBIT before special items of Corporate Center
(346)
(479)
EBIT before special items 
5,639
5,773
Special items of segments
(1,718)
(839)
Special items of Corporate Center
7
–
Special items
(1,711)
(839)
EBIT of segments
4,267
5,413
EBIT of Corporate Center
(339)
(479)
EBIT
3,928
4,934
Financial result
(752)
(727)
Income before income taxes 
3,176
4,207
2012 figures restated
Reconciliation of Segments’ Assets to Group Assets
[Table 4.19]
 
2012
2013
 
€ million
€ million
Assets of the operating segments
46,050
46,336
Corporate Center assets 
265
179
Non-allocated assets
5,003
4,802
Group assets
51,318
51,317
2012 figures restated
Reconciliation of Segments’ Liabilities to Group Liabilities
[Table 4.20]
 
2012
2013
 
€ million
€ million
Liabilities of the operating segments
18,678
17,225
Corporate Center liabilities
3,410
2,842
Non-allocated liabilities
10,679
10,446
Group liabilities
32,767
30,513
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

263
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
6. Scope of consolidation; subsidiaries and affiliates
INFORMATION ON GEOGRAPHICAL AREAS
The following table provides a regional breakdown of external sales by market and of intangible assets, property, plant 
and equipment:
INFORMATION ON MAJOR CUSTOMERS
Revenues from transactions with a single customer in no case exceeded 10% of Bayer Group sales in 2013 or 2012. 
6.	 Scope of consolidation; subsidiaries and affiliates
6.1	 Changes in the scope of consolidation
Changes in the scope of consolidation in 2013 were as follows:
The decrease in the number of consolidated companies in 2013 was primarily due to mergers among Group companies.
The Bayer Group holds 100% of the voting rights in the fully consolidated subsidiary Bayer Pearl Polyurethane 
­Systems LLC, United Arab Emirates, pursuant to a contractual agreement with the non-controlling stockholders.
Texas Brine Company LLC, United States, is fully consolidated as a structured entity. The Bayer Group guarantees the 
­liabilities of Texas Brine Company LLC to banks. These liabilities, which are reflected in full in the consolidated state-
ment of financial position, amounted to €22 million as of December 31, 2013 (2012: €27 million).
The above table includes two (2012: two) joint operations, Indurisk Rückversicherung AG, Luxembourg, and Lyondell 
Bayer Manufacturing Maasvlakte VOF, Netherlands, as of December 31, 2013. Pursuant to IFRS 11, Bayer’s shares of 
these companies’ assets, liabilities, revenues and expenses are included in the consolidated financial statements in 
­accordance with Bayer’s rights and obligations. The main purpose of Lyondell Bayer Manufacturing Maasvlakte VOF is 
the joint production of propylene oxide (PO) for Bayer and its partner Lyondell.
Information about Geographical Areas
[Table 4.21]
Net sales (external)  
– by market
Intangible assets and property, 
plant and equipment
 
2012
2013
2012
2013
 
€ million
€ million
€ million
€ million
Germany
4,640
4,862
12,945
12,806
United States
8,244
8,351
6,097
6,836
China
3,113
3,305
2,396
2,349
Other
23,744
23,639
7,217
6,800
Total
39,741
40,157
28,655
28,791
2012 figures restated
Change in Number of Consolidated Companies
[Table 4.22]
 
Germany
Other countries
Total
Bayer AG and consolidated companies
 
 
 
December 31, 2012
63
227
290
Changes in scope of consolidation
1
3
4
Additions
3
7
10
Retirements
(2)
(13)
(15)
December 31, 2013
65
224
289
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

264
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
6. Scope of consolidation; subsidiaries and affiliates
Two (2012: two) associated companies and three (2012: three) joint ventures are accounted for in the consolidated 
­financial statements using the equity method. Details of these companies are given in Note [19].
A total of 79 (2012: 86) subsidiaries, including one (2012: 0) structured entity and 14 (2012: 14) associates or joint 
­ventures that in aggregate are immaterial to the Bayer Group’s financial position and results of operations are not con-
solidated but recognized at cost. The immaterial subsidiaries accounted for less than 0.3% of Group sales, less than 
0.3% of equity and less than 0.2% of total assets.
Details of subsidiary and affiliated companies pursuant to Section 313 of the German Commercial Code can be 
­accessed at WWW.ANNUALREPORT2013.BAYER.COM/EN/COMPANYLIST.PDFX
The following domestic subsidiaries availed themselves in 2013 of certain exemptions granted under Section 264 
­Paragraph 3 and Section 264b of the German Commercial Code regarding the preparation, auditing and publication of 
financial statements:
Company Name
Place of Business 
Bayer’s interest
 
 
%
AgrEvo Verwaltungsgesellschaft mbH
Frankfurt am Main, Germany
100
Bayer 04 Immobilien GmbH
Leverkusen, Germany
100
Bayer 04 Leverkusen Fußball GmbH
Leverkusen, Germany
100
Bayer Altersversorgung GmbH
Leverkusen, Germany
100
Bayer Animal Health GmbH
Leverkusen, Germany
100
Bayer Beteiligungsverwaltung Goslar GmbH
Leverkusen, Germany
100
Bayer Business Services GmbH
Leverkusen, Germany
100
Bayer Chemicals AG
Leverkusen, Germany
100
Bayer Consumer Care Deutschland GmbH
Berlin, Germany
100
Bayer CropScience AG
Monheim am Rhein, Germany
100
Bayer CropScience Deutschland GmbH
Langenfeld, Germany
100
Bayer Direct Services GmbH
Leverkusen, Germany
100
Bayer Gastronomie GmbH
Leverkusen, Germany
100
Bayer Gesellschaft für Beteiligungen mbH
Leverkusen, Germany
100
Bayer HealthCare AG
Leverkusen, Germany
100
Bayer Innovation GmbH
Leverkusen, Germany
100
Bayer Intellectual Property GmbH
Monheim am Rhein, Germany
100
Bayer MaterialScience AG
Leverkusen, Germany
100
Bayer MaterialScience Customer Services GmbH
Leverkusen, Germany
100
Bayer MaterialScience GmbH
Darmstadt, Germany
100
Bayer MaterialScience Oldenburg GmbH & Co. KG
Oldenburg, Germany
100
Bayer Real Estate GmbH
Leverkusen, Germany
100
Bayer Schering Pharma AG
Berlin, Germany
100
Bayer Technology Services GmbH
Leverkusen, Germany
100
Bayer Vital GmbH
Leverkusen, Germany
100
Bayer Weimar GmbH und Co. KG
Weimar, Germany
100
Bayer-Handelsgesellschaft mit beschränkter Haftung
Leverkusen, Germany
100
Chemion Logistik GmbH
Leverkusen, Germany
100
Dritte Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Dritte K-W-A Beteiligungsgesellschaft mbH 
Leverkusen, Germany
100
Epurex Films GmbH & Co. KG
Bomlitz, Germany 
100
Erste Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Erste K-W-A Beteiligungsgesellschaft mbH
Leverkusen, Germany
100
German Exempt Subsidiaries
  [Table 4.23]
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265
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
6. Scope of consolidation; subsidiaries and affiliates
 
6.2	 Business combinations and other acquisitions
Acquisitions in 2013
Acquisitions are accounted for by the aquisition method, the results of the acquired businesses therefore being includ-
ed in the consolidated financial statements as of the respective acquisition dates. The purchase prices of acquired com-
panies domiciled outside the eurozone were translated at the exchange rates in effect at the respective acquisition 
dates.
Acquisition costs in 2013 amounted to €1,440 million (2012: €502 million). The purchase prices of the acquired 
­companies or businesses were settled mainly in cash. Total goodwill of €801 million (2012: €190 million) arose on these 
acquisitions. It related principally to the following transactions:
On January 2, 2013, HealthCare wholly acquired the U.S. company Teva Animal Health Inc., headquartered in ­ 
St. Joseph, Missouri. The acquisition broadens HealthCare’s range of anti-infective solutions for livestock and ex-
pands the existing product offering to include reproductive hormones. The transaction also adds ­dermatological prod-
ucts for companion animals, pet wellness products and nutraceuticals to the company’s portfolio. The parties agreed 
on a one-time payment of €38 million plus potential milestone payments, for which an amount of €45 million was in-
cluded in the purchase price allocation. The milestone payments are mainly dependent on the achievement of various 
sales targets. The purchase price pertained mainly to product trademarks. Sales of €11 million were recorded since 
the acquisition date.
On January 18, 2013, CropScience acquired all the shares of PROPHYTA Biologischer Pflanzenschutz GmbH, a leading 
supplier of biological crop protection products headquartered in Malchow in the German state of Mecklenburg-­
Western Pomerania. In addition to research and development facilities, the acquisition also includes state-of-the-art 
production and formulation facilities in the city of Wismar. A purchase price of €25 million was agreed, pertaining 
mainly to technologies, research and development projects and goodwill. In addition, two related distribution rights 
were acquired for €5 million. Sales of €4 million were recorded since the acquisition date.
Company Name
Place of Business 
Bayer’s interest
 
 
%
Euroservices Bayer GmbH
Leverkusen, Germany
100
Fünfte Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Generics Holding GmbH
Leverkusen, Germany
100
GP Grenzach Produktions GmbH
Grenzach-Wyhlen, Germany 
100
Hild Samen GmbH
Marbach am Neckar, Germany
100
Intendis GmbH
Berlin, Germany
100
Intraserv GmbH & Co. KG
Schönefeld, Germany
100
Jenapharm GmbH & Co. KG
Jena, Germany 
100
KOSINUS Grundstücks-Verwaltungsgesellschaft mbH & Co.  
Gamma OHG
 
Schönefeld, Germany
 
100
KVP Pharma+Veterinär Produkte GmbH
Kiel, Germany
100
Marotrast GmbH
Jena, Germany 
100
MENADIER Heilmittel GmbH
Berlin, Germany
100
Schering-Kahlbaum Gesellschaft mit beschränkter Haftung
Berlin, Germany
100
Sechste Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Siebte Bayer VV GmbH
Leverkusen, Germany
100
Steigerwald Arzneimittelwerk GmbH
Darmstadt, Germany
100
TECTRION GmbH
Leverkusen, Germany
100
TravelBoard GmbH
Leverkusen, Germany
100
Vierte Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Zweite Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Zweite K-W-A Beteiligungsgesellschaft mbH
Leverkusen, Germany
100
German Exempt Subsidiaries
  [Table 4.23 (continued)]
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266
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
6. Scope of consolidation; subsidiaries and affiliates
On March 15, 2013, CropScience wholly acquired soybean seed producer Wehrtec Tecnologia Agricola Ltda. and the 
soybean business of Agricola Wehrmann Ltda. Both companies are headquartered in Cristalina in the Brazilian state of 
Goiás. This transaction strengthens the soybean research and development activities of CropScience and contributes to 
the development of varieties tailored to the requirements of Brazilian soybean growers. A purchase price of €34 million 
was agreed along with potential milestone payments of up to €11 million. The purchase price pertained mainly to mar-
ketable crop plants, breeding material and goodwill. Sales of €16 million were recorded since the acquisition date.
In June 2013, HealthCare successfully completed the tender offer for the shares of Conceptus, Inc., currently headquar-
tered in Milpitas, California, United States, and acquired 100% of the outstanding shares. Conceptus, Inc. has devel-
oped Essure™, the only non-surgical permanent birth control method, which it markets in the U.S. and other countries. 
This acquisition enables Bayer to offer an even broader range of short-term, long-term and permanent contraceptive 
choices for women. A purchase price of €780 million was paid, pertaining mainly to technology and trademark rights. 
The goodwill remaining after the purchase price allocation is attributable to various factors, including significant cost 
savings in the marketing and sales functions along with general administration and infrastructure synergies. Sales of 
€74 million were recorded since the acquisition date.
In April 2013, the District Court of Berlin reached a decision in the court proceeding initiated by former minority stock-
holders of Bayer Pharma AG (formerly Bayer Schering Pharma AG) to review the adequacy of compensation payments 
made by Bayer in connection with the domination and profit and loss transfer agreement of 2006. The court decided 
that the compensation paid by Bayer at the time should be increased by about 40%. Bayer disagrees with this decision 
and has appealed. The potential supplementary payment represents a subsequent purchase price adjustment according 
to the March 31, 2004 version of IFRS 3 applicable at the acquisition date. Additional goodwill of €261 million, exclud-
ing interest, has been capitalized for this proceeding and for the parallel proceeding relating to the squeeze-out of the 
former minority stockholders.
On July 1, 2013, HealthCare acquired all the shares of Steigerwald Arzneimittelwerk GmbH, Darmstadt, Germany. 
­Steigerwald holds a strong position in the German phytopharmaceuticals market, which is focused on pharmacy-only 
herbal medicines. Its product portfolio includes Iberogast™ for the treatment of functional gastrointestinal disorders 
and Laif™ for the treatment of mild to moderate depression. A purchase price of €218 million was agreed, pertaining 
mainly to product trademarks, technologies and goodwill. Sales of €33 million were recorded since the acquisition date.
On December 2, 2013, CropScience acquired the start-up company FN Semillas S.A. and its parent company Holding 
Manager S.A., both headquartered in Buenos Aires, ­Argentina. The necessary regulatory approvals are pending. 
FN Semillas S.A. specializes in the breeding, production and marketing of improved soybean seeds in Argentina. 
A purchase price of €25 million was agreed, pertaining mainly to commercial cultivars, germplasm and goodwill. 
The purchase price allocations for FN Semillas S.A. and its parent company Holding Manager S.A. currently remain in-
complete pending compilation and review of the relevant financial information. It is therefore possible that changes will 
be made in the allocation of the purchase price to the individual assets and liabilities. The measurement of deferred tax 
for the Conceptus group also currently remains incomplete. Adjustments may be offset against goodwill. 
In 2013 the acquired businesses named above contributed €138 million (of which Conceptus: €74 million) to Bayer 
Group sales and minus €69 million (of which Conceptus: minus €26 million) to EBIT. Their total income after taxes since 
the respective dates of their first-time consolidation was minus €57 million (of which Conceptus: minus €25 million). 
This includes the financing costs incurred since the respective acquisition dates.
If these acquisitions had already been made as of January 1, 2013, the Bayer Group would have had total sales of 
€40,244 million (of which Conceptus: €120 million) in 2013. Income after taxes would have amounted to €3,171 million 
(of which Conceptus: minus €46 million), taking into account the effects of the hypothetical financing costs for the full 
year. Earnings per share would not have been materially affected.
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

267
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
6. Scope of consolidation; subsidiaries and affiliates
The effects of these and other, smaller transactions made in 2013 – and of purchase price adjustments made in 2013 
­relating to previous years’ transactions – on the Group’s assets and liabilities are shown in the table. Net of acquired 
cash and cash equivalents, the transactions resulted in the following cash outflow:
Acquisitions in 2012
In 2012 the following acquisitions were accounted for in accordance with IFRS 3:
On March 31, 2012, Bayer acquired the remaining 50% interest in the systems house joint venture Baulé S.A.S., 
France. This joint venture was formed in 2008 by MaterialScience and Michel Baulé S.A., which was later renamed 
­EXIMIUM S.A.S. Baulé S.A.S. is a global leader in the development, formulation and processing of polyurethane cast 
elastomers. The purchase price of €50 million pertained mainly to customer relationships and goodwill. The income 
statement of Baulé S.A.S. was included in the consolidated financial statements by proportionate consolidation for the 
last time in the first quarter of 2012, whereas its assets and liabilities were already fully consolidated as of March 31, 
2012. Following the purchase price allocation, the following assets and liabilities were recognized: goodwill (€39 mil-
lion), other intangible assets (€55 million), other noncurrent assets (€3 million), inventories and other current assets 
(€21 million), cash and cash equivalents (€5 million), other liabilities (€8 million) and deferred tax liabilities (€16 mil-
lion). The revaluation of mainly intangible assets that were previously held by the joint venture resulted in other oper-
ating income of €19 million. The fair value of the prior interest was €49 million at the time of the acquisition. 
On July 2, 2012, CropScience acquired the watermelon and melon seed business of the U.S. company Abbott & Cobb 
Inc., headquartered in Feasterville, Pennsylvania. Abbott & Cobb has a robust position in the U.S. watermelon market, 
with increasing business in Mexico, Australia and Asia. The acquisition significantly strengthens the presence of 
Acquired Assets and Assumed Liabilities (Fair Values at the Respective Acquisition Dates)
[Table 4.24]
 
2012 
2013 
Of which  
Conceptus, Inc.
 
€ million
€ million
€ million
Goodwill
190
801
475
Patents and technologies
254
400
338
Trademarks
15
281
45
R & D projects
80
64
28
Marketing rights
28
–
–
Production rights
4
–
–
Other rights
–
34
14
Software
14
1
1
Property, plant and equipment
13
55
14
Other noncurrent assets
1
1
1
Deferred tax assets
18
101
78
Inventories
36
59
24
Other current assets
15
45
33
Cash and cash equivalents
4
74
58
Provisions for pensions and other post-employment benefits
(1)
(9)
–
Other provisions
(3)
(16)
(10)
Financial liabilities
(1)
(85)
(83)
Other liabilities
(14)
(93)
(76)
Deferred tax liabilities
(151)
(273)
(160)
Net assets
502
1,440
780
Changes in non-controlling interest
–
1
–
Purchase price
502
1,441
780
Acquired cash and cash equivalents
(4)
(74)
(58)
Liabilities for future payments 
(34)
(295)
–
Payments for previous years´ / quarters´ acquisitions
5
14
–
Net cash outflow for acquisitions
469
1,086
722
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

268
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
6. Scope of consolidation; subsidiaries and affiliates
­CropScience in the watermelon and melon market. The melon seed business and the related germplasm add to its ex-
isting seed portfolio and provide the basis for new hybrids. A net purchase price of €43 million was agreed, pertaining 
mainly to germplasm, customer relations and goodwill. 
On July 3, 2012, CropScience signed an agreement to purchase the U.S. company AgraQuest, Inc., headquartered  
in Davis, California. AgraQuest, Inc. is a global supplier of innovative biological pest management solutions based on 
natural microorganisms. It focuses on discovering, manufacturing and marketing highly effective products for biologi-
cal pest and disease control to safeguard and increase crop production. The acquisition will help CropScience to build  
a leading technology platform for biological products and to further strengthen its strategically important fruit and  
vegetables business. A purchase price of €375 million was agreed, pertaining mainly to the technology platform and 
goodwill. This amount comprised a one-time payment and potential milestone payments with a total fair value of 
€31 million. 
6.3	 Divestitures
Divestitures in 2013
The effects of divestitures made in 2013 and previous years on the consolidated financial statements for 2013 are 
­detailed below.
On June 1, 2013, MaterialScience sold its global powder polyester resins business and its U.S.-based liquid polyester 
resins merchant business to Stepan Company of Northfield, Illinois, United States. A purchase price of €45 million was 
agreed. The divestment gain of €42 million is reported under special items.
The Bayer Group received further revenue-based payments of €25 million in connection with the transfer of the hema-
tological oncology portfolio to Genzyme Corp., United States, effected in May 2009.
The effects in 2013 of the above divestitures, an additional smaller divestiture and the payments received from 
­Genzyme were as follows:
Divestitures in 2012
On April 15, 2012, Bayer entered into an agreement to sell all PET tracer substances to Piramal Imaging SA., Switzer-
land. This transaction includes the PET tracer florbetaben, which is currently in development for the detection of Alzhei-
mer’s disease, the most common form of dementia. Revenue-based milestone and royalty payments were agreed upon.
The agreement with Genzyme Corp., United States, announced in March 2009, comprised the transfer of the hemato-
logical oncology portfolio to Genzyme, which was effected in May 2009. We also agreed to transfer the production site 
Divestitures
[Table 4.25]
 
2012
2013
 
€ million
€ million
Divested assets and liabilities
 
 
Property, plant and equipment
 –
13
Inventories
1
–
Other current assets
 –
4
Assets held for sale
70
–
Other provisions
–
(2)
Other liabilities
–
(3)
Divested net assets
71
12
Non-controlling interest
–
–
Net assets
71
12
Net cash inflow from divestitures
178
79
Divested net assets
(71)
(12)
Changes in future cash payments receivable
(103)
(25)
Net gain from divestitures (before taxes)
4
42
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

269
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
7. Net sales
for Leukine after final inspection by the U.S. Food and Drug Administration (FDA). This inspection took place in 
March 2012. The agreement concerning the sale of the production site including inventories was signed on May 29, 
2012. A purchase price of €71 million was agreed.
The Bayer Group received revenue-based payments of €99 million in 2012 in connection with the aforementioned 
transfer of the hematological oncology portfolio to Genzyme Corp., United States.
Notes to the Income Statements
7. Net sales
Net sales are derived primarily from product deliveries. Total reported net sales rose in 2013 by €416 million, or 1.0%, 
year on year to €40,157 million. The increase resulted from the following factors:
Breakdowns of net sales by segment and by region are given in the table in Note [1].
8. Selling expenses
Selling expenses comprise all expenses incurred in the reporting period for the sale, storage and transportation  
of saleable products, advertising, the provision of advice to customers, and market research. Selling expenses were 
comprised as follows:
9. Research and development expenses
Research and development expenses and their accounting treatment are defined in Note [4]. Breakdowns of research 
and development expenses by segment and region are given in Note [1].
Factors in Sales Development
[Table 4.26]
 
2013
 
€ million
%
Volume
1,713
+ 4.3
Price
330
+ 0.8
Currency
(1,737)
– 4.4
Portfolio
110
+ 0.3
Total
416
+ 1.0
Selling Expenses
[Table 4.27]
 
Dec. 31, 2012
Dec. 31, 2013
 
€ million
€ million
Internal and external sales force
4,595
4,547
Advertising and customer advice
2,271
2,393
Physical distribution and warehousing of finished products
1,322
1,071
Commission and licensing expenses
680
877
Other selling expenses
1,113
1,192
Total
9,981
10,080
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

270
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
10. Other operating income
10. Other operating income
Other operating income was comprised as follows:
Gains from the sale of noncurrent assets included a €42 million gain from the sale of the global powder polyester resins 
business and the U.S.-based liquid polyester resins merchant business to Stepan Company of Northfield, Illinois, United 
States. A gain of €22 million was also incurred from the sale of transfer rights at Bayer 04 Leverkusen Fußball GmbH. A 
gain of €11 million was recorded from the sale of the “Bayer House” administration building in Powdai, India. In the 
HealthCare subgroup, a gain of €11 million was received from the sale of the French insect repellent Cinq sur Cinq.
The miscellaneous operating income contained a €17 million gain from the sale of the Desmolux product line for 
UV-curing coating systems to Allnex S.à r.l., Luxembourg, and Allnex Belgium SA, Belgium, and a €16 million gain from 
the sale of the antibiotic Binotal to Paladin Labs Inc., Canada. Also included here are gains of €41 million from embed-
ded derivatives. The HealthCare subgroup recorded a €13 million gain from the reversal of an impairment loss previ-
ously recognized on a patent.
In 2012, gains from the sale of noncurrent assets contained a gain of €158 million from the sale of a parcel of land in 
­India. Also included was a €24 million gain from the sale of the fungicidal active ingredient fluoxastrobin to Arysta Life-
Science Corporation, Japan. A gain of €10 million was also incurred from the sale of the insecticidal active ingredient 
carbaryl to Tessenderlo Kerley, Inc., United States. In the HealthCare subgroup, a gain of €22 million was received from 
the sale of the oncology product clastoban to Bioprojet Pharma S.A.R.L., France.
The miscellaneous operating income in 2012 included a €16 million impairment loss reversal for a product family in  
the Pharmaceuticals reporting segment and income of €114 million from adjustments of entitlements to “pension and 
­other post-employment benefits“ in the United States. In addition, a gain of €17 million arose from the payment of a 
break-up fee following termination of the intended acquisition of Schiff Nutrition International, Inc., United States. Also 
included here was €18 million in compensation payments from insurers following a fire at the Dormagen site. 
The following table provides a breakdown of the special items included in other operating income by the function to 
which they relate:
Other Operating Income
[Table 4.28]
 
2012
2013
 
€ million
€ million
Gains on retirements of noncurrent assets
226
134
Reversals of impairment losses on receivables
28
42
Reversals of unutilized provisions
69
29
Gains from derivative hedging transactions
171
324
Miscellaneous operating income
593
368
Total
1,087
897
of which special items
288
64
2012 figures restated
Breakdown of Special Items by Function
[Table 4.29]
 
2012
2013
 
€ million
€ million
Production-related
8
15
Marketing- and distribution-related
2
–
Research- and development-related
6
–
General-administration-related
–
–
Other
272
49
Total
288
64
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

271
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
11. Other operating expenses
11. Other operating expenses
Other operating expenses were comprised as follows:
The €276 million in expenses for significant legal risks resulted primarily from accounting measures taken in connec-
tion with claims concerning Yasmin™ / YAZ™ , Cipro™ and Mirena™. The previous year’s expenses of €1,298 million 
mainly related to claims concerning Yasmin™ / YAZ™ and litigation concerning genetically modified rice (LL RICE).
The miscellaneous operating expenses included €358 million (2012: €396 million) in restructuring expenses, largely 
consisting of personnel expenses and impairment losses. Of this amount, €197 million (2012: €182 million) was in-
curred by the HealthCare subgroup. Restructuring expenses in the CropScience subgroup amounted to €67 million 
(2012: €83 million) and those at MaterialScience to €36 million (2012: €50 million). The service areas accounted for a 
further €58 million (2012: €81 million) in restructuring expenses.
The miscellaneous operating expenses also included €184 million in impairment losses recognized on research and de-
velopment projects and product lines in the HealthCare subgroup. In the previous year they included impairment losses 
of €175 million on the product name “Medrad” and €130 million on a patent. The HealthCare subgroup also incurred 
expenses of €76 million for the integration of acquired businesses. Included in addition were expenses of €59 million 
relating to embedded derivatives. As in the previous year, the remaining amount of miscellaneous operating expenses 
comprised a large number of individually immaterial items at the subsidiaries.
The following table provides a breakdown of the special items included in other operating expenses by the function to 
which they relate:
Of the expenses incurred for the restructuring program in the HealthCare subgroup, an amount of €16 million  
was ­recognized as a special item in the cost of goods sold and therefore is not reflected in miscellaneous operating 
expenses.
Breakdown of Special Items by Function
[Table 4.31]
 
2012
2013
 
€ million
€ million
Production-related
(183)
(115)
Marketing- and distribution-related
(217)
(73)
Research- and development-related
(48)
(212)
General-administration-related
(60)
(56)
Other
(1,497)
(431)
Total
(2,005)
(887)
Other Operating Expenses
[Table 4.30]
 
2012
2013
 
€ million
€ million
Losses on retirements of noncurrent assets
(26)
(28)
Impairment losses on receivables
(95)
(82)
Expenses related to significant legal risks
(1,298)
(276)
Losses from derivative hedging transactions
(324)
(194)
Miscellaneous operating expenses
(1,227)
(1,040)
Total
(2,970)
(1,620)
of which special items
(2,005)
(887)
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

272
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
12. Personnel expenses and employee numbers
12. Personnel expenses and employee numbers
Personnel expenses rose in 2013 by €236 million to €9,430 million (2012: €9,194 million), with higher variable compensa-
tion and regular salary adjustments accounting for most of this increase.
The personnel expenses shown here do not contain the interest portion of the allocation to personnel-related ­ 
provisions – mainly for pensions and other post-employment benefits – which is included in the financial result under 
other financial expenses (Note [13.3]). 
The average numbers of employees, classified by corporate functions, were as shown in the table below:
The number of employees on either permanent or fixed-term contracts is stated in full-time equivalents, with  
part-time employees included on a pro-rated basis in line with their contractual working hours. The figures do not 
­include apprentices.
13. Financial result
The financial result for 2013 was minus €727 million (2012: minus €752 million), comprising an equity-method loss  
of €16 million (2012: €18 million), financial expenses of €1,100 million (2012: €1,237 million) and financial income of 
€389 million (2012: €503 million). Details of the components of the financial result are provided below.
Employees
[Table 4.33]
 
2012
2013
Production
46,830
46,115
Marketing and distribution
42,218
43,652
Research and development
12,990
13,297
General administration
9,092
9,182
Total
111,130
112,246
Apprentices
2,320
2,364
2012 figures restated
Personnel Expenses
[Table 4.32]
 
2012
2013
 
€ million
€ million
Salaries
7,371
7,585
Social expenses and expenses for pensions and other benefits
1,823
1,845
of which for defined contribution pension plans
481
487
of which for defined benefit and other pension plans
200
410
Total
9,194
9,430
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

273
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
13. Financial result
13.1 Income (loss) from investments in affiliated companies
The net income (loss) from investments in affiliated companies was comprised as follows:  
The income from investments in affiliated companies mainly comprised a €77 million gain from the sale of an invest-
ment in Onyx Pharmaceuticals, Inc., United States, and the equity-method loss of €20 million (2012: €21 million) from 
the associate PO JV, LP, United States. 
Further details of the companies accounted for using the equity method are given in Note [19].
13.2 Net interest expense
The net interest expense was comprised as follows:
Interest and similar expenses included interest expense of €43 million (2012: €29 million) relating to non-financial 
­liabilities. Interest and similar income included interest income of €26 million (2012: €10 million) from non-financial 
assets.
At the end of April 2013, the District Court of Berlin reached a decision in the court proceeding initiated by former 
­minority stockholders of Bayer Pharma AG (formerly Bayer Schering Pharma AG) to review the adequacy of compensa-
tion payments made by Bayer in connection with the domination and profit and loss transfer agreement of 2006. The 
court decided that the compensation paid by Bayer at the time should be increased by about 40%. Bayer disagrees 
with this decision and has appealed. Interest expense of €63 million was recognized in 2013 in connection with a 
­potential additional payment.
Net Interest Expense
[Table 4.35]
 
2012
2013
 
€ million
€ million
Expenses
 
 
Interest and similar expenses
(587)
(602)
Interest expenses for derivatives (held for trading)
(156)
(54)
Income
 
 
Interest and similar income
317
257
Interest income from derivatives (held for trading)
174
44
Total
(252)
(355)
Income (Loss) from Investments in Affiliated Companies
[Table 4.34]
 
2012
2013
 
€ million
€ million
Net loss from investments accounted for using the equity method (equity-method loss)
(18)
(16)
Expenses
 
 
Impairment losses on investments in affiliated companies
(6)
(2)
Losses from the sale of investments in affiliated companies
(1)
–
Expenses from investments in affiliated companies and from profit and loss transfer agreements (net)
–
–
Gains
 
 
Gains from the sale of investments in affiliated companies
2
77
Total
(23)
59
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

274
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
14. Taxes
The change in the liability for redeemable non-controlling interests is reflected in interest income or expense.  
A €31 million increase (2012: €27 million decrease) in this liability was recognized as interest expense (income). 
13.3 Other financial income and expenses 
Other financial income and expenses were comprised as follows:
The interest portion of noncurrent provisions comprised €302 million (2012: €332 million) in interest expense for 
­pension provisions less €5 million (2012: plus €58 million) in effects of interest expense and interest-rate fluctuations 
for other provisions and corresponding overfunding. The interest expense for pension provisions included €763 mil-
lion (2012: €862 million) for the unwinding of discount on the present value of the defined benefit obligation and 
€461 million (2012: €530 million) in interest income from plan assets.
14. Taxes
The breakdown of tax expenses by origin was as follows: 
Other Financial Income and Expenses
[Table 4.36]
 
2012
2013
 
€ million
€ million
Expenses
 
 
Interest portion of interest-bearing provisions
(390)
(297)
Exchange loss
(69)
(120)
Miscellaneous financial expenses
(28)
(25)
Income
 
 
Miscellaneous financial income
10
11
Total
(477)
(431)
2012 figures restated
Tax Expense by Origin
[Table 4.37]
 
2012
2013
 
Of which 
income taxes
Of which 
income taxes
 
€ million
€ million
€ million
€ million
Taxes paid or accrued
 
 
 
 
Income taxes
 
 
 
 
Germany
(534)
 
(795)
 
Other countries
(1,026)
 
(849)
 
Other taxes
 
 
 
 
Germany
(28)
 
(43)
 
Other countries
(235)
 
(188)
 
 
(1,823)
(1,560)
(1,875)
(1,644)
Deferred taxes
 
 
 
 
from temporary differences
782
 
569
 
from tax loss carryforwards and tax credits
55
 
54
 
 
837
837
623
623
 
 
 
 
 
Total 
(986)
(723)
(1,252)
(1,021)
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

275
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
14. Taxes
The other taxes mainly include land, vehicle and other indirect taxes. They are reflected in the respective functional  
cost items.
The deferred tax assets and liabilities were allocable to the following items in the statement of financial position: 
Deferred taxes on remeasurements, recognized outside profit or loss, of the net liability for defined benefit pension and 
other post-employment benefits diminished equity by €604 million (2012: increased equity by €848 million). Deferred 
taxes on changes, recognized outside profit or loss, in fair values of available-for-sale financial assets and derivatives 
designated as cash flow hedges diminished equity by €2 million (2012: €65 million). These effects on equity are report-
ed in the statement of comprehensive income. 
The use of tax loss carryforwards reduced the income taxes paid or accrued in 2013 by €62 million (2012: €48 million). 
The use of tax credits reduced income taxes paid or accrued by €18 million (2012: €20 million).
Of the total tax loss carryforwards of €3,071 million in 2013 (2012: €1,302 million), an amount of €2,127 million 
(2012: €922 million) is expected to be usable within a reasonable period. The increase in loss carryforwards was mainly 
due to existing loss carryforwards of acquired companies and tax reassessments for prior years. Deferred tax assets of 
€313 million (2012: €212 million) were recognized for the amount of loss carryforwards expected to be usable. The de-
ferred tax assets included an amount of €98 million (2012: €18 million) that resulted from purchase price allocations 
and was recognized outside profit or loss.
The use of €944 million (2012: €380 million) of tax loss carryforwards was subject to legal or economic restrictions. 
Consequently, no deferred tax assets were recognized for this amount. If these tax loss carryforwards had been fully 
­usable, deferred tax assets of €117 million (2012: €73 million) would have been recognized.
Deferred Tax Assets and Liabilities
[Table 4.38]
Dec. 31, 2012
Dec. 31, 2013
 
Deferred  
tax assets
Deferred  
tax liabilities
Deferred  
tax assets
Deferred  
tax liabilities
 
€ million
€ million
€ million
€ million
Intangible assets
245
2,427
328
2,217
Property, plant and equipment
69
729
86
639
Financial assets
169
217
181
185
Inventories
585
81
628
37
Receivables
205
451
207
538
Other assets
43
19
19
13
Provisions for pensions and other post-employment benefits
2,735
971
2,044
1,075
Other provisions
1,042
265
933
288
Liabilities
458
52
587
57
Tax loss carryforwards
212
–
313
–
Tax credits
93
–
126
–
 
5,856
5,212
5,452
5,049
of which noncurrent
4,643
4,950
4,142
4,692
Set-off
(4,277)
(4,277)
(3,856)
(3,856)
Total
1,579
935
1,596
1,193
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

276
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
14. Taxes
Tax credits of €126 million were recognized in 2013 (2012: €93 million) as deferred tax assets, including €2 million 
(2012: €0 million) outside profit or loss. The use of €29 million (2012: €49 million) of tax credits was subject to legal or 
economic restrictions. Consequently, no deferred tax assets were recognized for this amount.
Unusable tax credits and tax loss carryforwards will expire as follows:
In 2013, subsidiaries that reported losses for 2013 or 2012 recognized net deferred tax assets totaling €757 million 
(2012: €289 million) from temporary differences and tax loss carryforwards. These assets were considered to be unim-
paired because the companies concerned were expected to generate taxable income in the future.
Deferred tax liabilities of €10 million were recognized in 2013 (2012: €23 million) for planned dividend payments  
by subsidiaries. Deferred tax liabilities were not recognized for temporary differences on €10,583 million  
(2012: €10,911 million) of retained earnings of subsidiaries and associates because the Bayer Group is able to control 
the ­timing of the difference reversal and the temporary differences will not reverse in the foreseeable future.
The reported tax expense of €1,021 million for 2013 (2012: €723 million) differed by €32 million (2012: €64 million) 
from the expected tax expense of €1,053 million (2012: €787 million) that would have resulted from applying an  
expected weighted average tax rate to the pre-tax income of the Group. This average rate, derived from the expected 
tax rates of the individual Group companies, was 25.0% in 2013 (2012: 24.8%). The effective tax rate was 24.3% 
(2012: 22.8%).
The reconciliation of expected to reported income tax expense and of the expected to the effective tax rate for the 
Group was as follows: 
Expiration of Unusable Tax Credits and Tax Loss Carryforwards
[Table 4.39]
Tax credits
Tax loss carryforwards
 
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
 
€ million
€ million
€ million
€ million
One year
24
–
–
43
Two years
–
3
43
–
Three years
–
–
–
3
Four years
–
2
–
7
Five years 
–
1
–
24
Thereafter
25
23
337
867
Total
49
29
380
944
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

277
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
15. Income / losses attributable to non-controlling interest
15. Income / losses attributable to non-controlling interest 
Income attributable to non-controlling interest amounted to €1 million (2012: €51 million). Losses attributable to 
non-controlling interest amounted to €4 million (2012: €1 million). The income in the prior year included the gain from 
the sale of a parcel of land in India. 
16. Earnings per share 
Earnings per share are determined according to IAS 33 (Earnings per Share) by dividing net income by the weighted 
average number of ordinary shares in issue during the year. 
Reconciliation of Expected to Actual Income Tax Expense
[Table 4.40]
 
2012
2013
 
€ million
% 
€ million
% 
Expected income tax expense and expected tax rate
787
24.8
1,053
25.0
 
 
 
 
 
Reduction in taxes due to tax-free income
 
 
 
 
Income related to the operating business
(140)
(4.4)
(123)
(2.9)
Income from affiliated companies and divestiture proceeds
(16)
(0.5)
(39)
(0.9)
 
 
 
 
 
First-time recognition of previously unrecognized deferred tax assets  
on tax loss carryforwards
 
(26)
 
(0.8)
 
(6)
 
(0.1)
Use of tax loss carryforwards on which deferred tax assets  
were not previously recognized
 
(21)
 
(0.7)
 
–
 
–
 
 
  
 
 
Increase in taxes due to non-tax-deductible expenses
 
 
 
 
Expenses related to the operating business
135
4.3
173
4.1
Impairment losses on investments in affiliated companies
1
–
1
–
 
 
 
 
 
New tax loss carryforwards unlikely to be usable
10
0.3
10
0.2
Existing tax loss carryforwards on which deferred tax assets  
were previously recognized but which are unlikely to be usable
 
9
 
0.3
 
1
 
–
 
 
 
 
 
Tax income (–) and expenses (+) relating to other periods
(15)
(0.5)
42
1.0
Tax effects of changes in tax rates
(74)
(2.3)
(55)
(1.3)
Other tax effects
73
2.3
(36)
(0.8)
 
 
 
  
 
Actual income tax expense and effective tax rate
723
22.8
1,021
24.3
2012 figures restated
Earnings Per Share
[Table 4.41]
 
2012
2013
 
€ million
€ million
Income after taxes
2,453
3,186
of which attributable to non-controlling interest
50
(3)
of which attributable to Bayer AG stockholders (net income)
2,403
3,189
Shares
Shares
Weighted average number of issued ordinary shares
826,947,808
826,947,808
€
€
Basic earnings per share 
2.91
3.86
Diluted earnings per share 
2.91
3.86
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

278
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
17. Goodwill and other intangible assets
Notes to the Statements of Financial Position
17. Goodwill and other intangible assets
Changes in intangible assets in 2013 were as follows: 
Changes in Intangible Assets
[Table 4.42]
 
Acquired 
goodwill 
Patents and 
technologies 
Trade- 
marks 
Marketing 
and distribu­
tion rights
Production 
rights 
R & D  
projects 
 
Other rights 
and advance 
payments 
Total 
 
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Cost of acquisition  
or generation,  
December 31, 2012
 
 
9,293
 
 
10,743
 
 
4,048
 
 
1,440
 
 
2,079
 
 
899
 
 
2,968
 
 
31,470
Changes in scope  
of consolidation
 
–
 
–
 
–
 
1
 
–
 
–
 
3
 
4
Acquisitions
801
400
281
–
–
64
35
1,581
Capital expenditures
–
35
–
117
–
69
162
383
Retirements
–
(185)
(4)
(44)
(13)
(55)
(32)
(333)
Transfers
–
87
–
126
–
(180)
(33)
–
Transfers (IFRS 5)
–
–
–
–
–
–
–
–
Inflation adjustment (IAS 29)
6
–
–
–
–
–
–
6
Remeasurement (IFRS 3)
–
–
–
–
–
–
–
–
Exchange differences
(238)
(59)
(43)
(42)
(4)
(22)
(109)
(517)
December 31, 2013
9,862
11,021
4,282
1,598
2,062
775
2,994
32,594
 
 
 
 
 
 
 
 
 
Accumulated amortization 
and impairment losses, 
December 31, 2012
 
 
–
 
 
6,082
 
 
2,107
 
 
760
 
 
1,661
 
 
6
 
 
2,097
 
 
12,713
Changes in scope  
of consolidation
 
–
 
–
 
–
 
–
 
–
 
–
 
2
 
2
Retirements
–
(158)
(2)
(44)
(13)
(55)
(32)
(304)
Amortization and  
impairment losses in 2013
 
–
 
766
 
180
 
135
 
128
 
186
 
177
 
1,572
Amortization
–
737
176
131
114
–
164
1,322
Impairment losses
–
29
4
4
14
186
13
250
Impairment loss reversals
–
(13)
–
–
–
–
–
(13)
Transfers
–
–
–
–
–
–
–
–
Transfers (IFRS 5)
–
–
–
–
–
–
–
–
Exchange differences
–
(24)
(23)
(17)
(3)
(6)
(79)
(152)
December 31, 2013
–
6,653
2,262
834
1,773
131
2,165
13,818
Carrying amounts,  
December 31, 2013
 
9,862
 
4,368
 
2,020
 
764
 
289
 
644
 
829
 
18,776
Carrying amounts,  
December 31, 2012
 
9,293
 
4,661
 
1,941
 
680
 
418
 
893
 
871
 
18,757
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

279
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
17. Goodwill and other intangible assets
The capitalized patents and technologies include an amount pertaining to the active ingredient alemtuzumab (product 
name: Lemtrada) for the treatment of multiple sclerosis. Bayer gave back the worldwide distribution rights for alemtu-
zumab to Genzyme Corp., United States, in 2009 and in return received global co-promotion rights and an entitlement 
to royalties and revenue-based milestone payments. On September 16, 2013, Genzyme Corp. received marketing ap-
proval for alemtuzumab in Europe. In the course of the approval process for the United States, the FDA issued a Com-
plete Response Letter in December 2013. Bayer has decided not to exercise its co-promotion rights for countries out-
side of the United States. 
Impairment losses of €237 million, net of a €13 million impairment loss reversal, were recognized on other intangible 
assets. The development activities for an intangible asset in the Pharmaceuticals segment were terminated in light of 
clinical study results. An impairment loss of €85 million was recognized on this asset. Also in the Pharmaceuticals seg-
ment, a €33 million impairment loss was recognized on an intangible asset because of the U.S. FDA’s ­request for the 
submission of additional data and the resulting delays. In the Consumer Health segment, a €58 million impairment loss 
was recognized on an asset under development in view of repeated delays to the product’s market ­introduction and the 
current appraisal of the market environment.
Impairment losses were recognized on further intangible assets in the Pharmaceuticals segment (€25 million), the 
­Consumer Health segment (€23 million), the MaterialScience segment (€12 million) and Other Segments (€1 million).
Details of acquisitions and divestitures are provided in Notes [6.2] and [6.3]. The impairment testing procedure for 
goodwill and other intangible assets is explained in Note [4].
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

280
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
17. Goodwill and other intangible assets
Changes in intangible assets in 2012 were as follows: 
Changes in Intangible Assets (Previous Year)
[Table 4.43]
 
Acquired 
goodwill
Patents and 
technologies
Trade- 
marks
Marketing 
and distribu­
tion rights
Production 
rights 
R & D 
projects 
 
Other rights 
and advance 
payments 
Total 
 
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Cost of acquisition  
or generation,  
December 31, 2011
 
 
9,169
 
 
10,527
 
 
4,054
 
 
1,227
 
 
2,072
 
 
791
 
 
2,789
 
 
30,629
Changes in scope  
of consolidation
 
–
 
2
 
–
 
–
 
–
 
–
 
1
 
3
Acquisitions
190
254
15
28
4
80
14
585
Capital expenditures
–
43
–
56
1
163
181
444
Retirements
(21)
(9)
(6)
(9)
–
(4)
(30)
(79)
Transfers
–
(48)
–
122
–
(123)
58
9
Transfers (IFRS 5)
–
–
–
–
–
–
–
–
Inflation adjustment (IAS 29)
2
–
–
–
–
–
–
2
Remeasurement (IFRS 3)
19
–
–
24
4
–
–
47
Exchange differences
(66)
(26)
(15)
(8)
(2)
(8)
(45)
(170)
December 31, 2012
9,293
10,743
4,048
1,440
2,079
899
2,968
31,470
 
 
 
 
 
 
 
 
 
Accumulated amortization 
and impairment losses,  
December 31, 2011
 
 
21
 
 
5,290
 
 
1,774
 
 
655
 
 
1,547
 
 
12
 
 
1,898
 
 
11,197
Changes in scope  
of consolidation
 
–
 
–
 
–
 
–
 
–
 
–
 
1
 
1
Retirements
(21)
(6)
(4)
(8)
–
(4)
(28)
(71)
Amortization and  
impairment losses in 2012
 
–
 
891
 
347
 
118
 
116
 
5
 
182
 
1,659
Amortization
–
759
172
110
116
–
175
1,332
Impairment losses
–
132
175
8
–
5
7
327
Impairment loss reversals
–
(16)
–
–
–
(5)
–
(21)
Transfers
–
(70)
–
–
–
(2)
72
–
Transfers (IFRS 5)
–
–
–
–
–
–
–
–
Exchange differences
–
(7)
(10)
(5)
(2)
–
(28)
(52)
December 31, 2012
–
6,082
2,107
760
1,661
6
2,097
12,713
Carrying amounts,  
December 31, 2012
 
9,293
 
4,661
 
1,941
 
680
 
418
 
893
 
871
 
18,757
Carrying amounts,  
December 31, 2011
 
9,148
 
5,237
 
2,280
 
572
 
525
 
779
 
891
 
19,432
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

281
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
17. Goodwill and other intangible assets
Changes in the carrying amounts of goodwill for the reporting segments in 2013 and 2012 were as follows:  
Goodwill and other intangible assets with an indefinite useful life that are of material significance for the Bayer Group 
are allocated to the following cash-generating units or unit groups as of the end of the reporting period:
 Goodwill by Reporting Segment
[Table 4.44]
 
Pharma- 
ceuticals
Consumer  
Health
HealthCare 
Crop- 
Science
Material- 
Science
Bayer  
Group
 
€ million
€ million
€ million
€ million
€ million
€ million
Carrying amounts, January 1, 2012
4,664
2,436
7,100
1,844
204
9,148
Change in scope of consolidation
–
–
–
–
–
–
Acquisitions
–
8
8
162
20
190
Retirements
–
–
–
–
–
–
Impairment losses in 2012
–
–
–
–
–
–
Transfers
1
(1)
–
–
–
–
Transfers (IFRS 5)
–
–
–
–
–
–
Inflation adjustment (IAS 29)
–
2
2
–
–
2
Remeasurement (IFRS 3)
–
–
–
–
19
19
Exchange differences
(17)
(25)
(42)
(23)
(1)
(66)
Carrying amounts, December 31, 2012
4,648
2,420
7,068
1,983
242
9,293
Change in scope of consolidation
–
–
–
–
–
–
Acquisitions
680
95
775
26
–
801
Retirements
–
–
–
–
–
–
Impairment losses in 2013
–
–
–
–
–
–
Transfers
–
–
–
–
–
–
Transfers (IFRS 5)
–
–
–
–
–
–
Inflation adjustment (IAS 29)
–
6
6
–
–
6
Remeasurement (IFRS 3)
–
–
–
–
–
–
Exchange differences
(90)
(86)
(176)
(58)
(4)
(238)
Carrying amounts, December 31, 2013
5,238
2,435
7,673
1,951
238
9,862
2012 figures restated
Intangible Assets with Indefinite Useful Life
[Table 4.45]
Reporting segment
Cash-generating unit /  
unit group
Goodwill 
Important intangible assets  
with indefinite useful life
 
 
€ million
€ million
Pharmaceuticals
Pharmaceuticals
5,238
345
Consumer Health
Radiology & Interventional
1,259
66
Consumer Health
Consumer Care
1,097
84
CropScience
Crop Protection
1,208
76
CropScience
Seeds
383
139
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

282
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
17. Goodwill and other intangible assets
In the case of research and development projects, the point in time from which a capitalized asset can be expected to 
generate an economic benefit for the company cannot be determined. Such assets are therefore classified as having an 
indefinite useful life. Development projects were capitalized at a total amount of €644 million as of the end of 2013 
(2012: €893 million). 
Another intangible asset classified as having an indefinite useful life is the Bayer Cross, which was reacquired for the 
North America region in 1994, having been awarded to the United States and Canada under the reparations agree-
ments at the end of the First World War. The period for which the Bayer Group will derive an economic benefit from 
this name cannot be determined as Bayer intends to make continuous use of it. The Bayer Cross is capitalized at 
€107 million.
Patents and technologies
The Bayer Group endeavors to obtain patent protection for its products and technologies in the major markets. 
­Depending on the jurisdiction, patent protection may be available for:
•	 individual active ingredients,
•	 specific compounds, formulations and combinations containing active ingredients,
•	 manufacturing processes,
•	 working methods,
•	 equipment,
•	 intermediates for the manufacture of active ingredients and products,
•	 isolated genes or proteins,
•	 new uses for existing active ingredients or products,
•	 material combinations and
•	 semi-finished products.
The protection that a patent provides varies from country to country, depending on the type of claim granted, the scope 
of the claim’s coverage and the legal remedies available for enforcement. 
The Bayer Group currently owns some 67,400 patents or patent applications. Although in our Pharmaceuticals segment 
the patents on Avalox™ / Avelox™, Betaferon™ / Betaseron™, Eylea™ / Eylia™, Kogenate™, Levitra™, Magnevist™, 
­Mirena™, Nexavar™, Stivarga™, Xarelto™, YAZ™, Yasmin™ and Yasminelle™ are particularly important to our business, 
we believe that no single patent (or group of related patents) is crucial to our business as a whole.
Term and expiration of patents
Patents are valid for varying periods, depending on the laws of the jurisdiction granting the patent. In some jurisdic-
tions, patent protection begins from the date a patent application was filed; in others, it begins on the date the patent is 
granted.
The European Union member countries as well as the United States, Japan and certain other countries extend patent 
terms or issue supplementary protection certificates to compensate for patent term loss due to regulatory review and 
for the substantial investments in product research and development. We endeavor to obtain such patent term exten-
sions or supplementary certificates wherever possible. Apart from substance and product patents, we continue to seek
•	 patents on processes and intermediates used in manufacturing an active ingredient,
•	 patents relating to specific uses for an active ingredient,
•	 patents relating to novel compositions and formulations, and
•	 market exclusivity in countries where this is possible (such as the United States).
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

283
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
17. Goodwill and other intangible assets
The following table sets forth the expiration dates in our major markets of the most important patents covering  
Adempas™, Avalox™ / Avelox™, Betaferon™ / Betaseron™, Eylea™ / Eylia™, Kogenate™, Levitra™, Magnevist™, 
­Mirena™, Nexavar™, Stivarga™, Xarelto™, Xofigo™, YAZ™, Yasmin™ and Yasminelle™:
Information on specific patent disputes is given in Note [32]. 
Expiration Dates of Most Important Patents 
[Table 4.46]
Market
 
Germany
France
U.K.
Italy
Spain
Japan
China
U.S.A.
Canada
Products
 
 
 
 
 
 
 
 
 
Adempas™
 
 
 
 
 
 
 
 
 
Active ingredient
2023a
2023a
2023a
2023a
2023a
2023a
2023
2023a
2023
Avalox™ / Avelox™
 
 
 
 
 
 
 
 
 
Active ingredient
2014
2014
2014
2014
2014
2014
2013
2014
2015
Active ingredient  
monohydrate
 
2016
 
2016
 
2016
 
2016
 
2016
 
2016
 
2016
 
2016
 
2016
Tablets
2019
2019
2019
2019
2019
2019
2019
2019
2019
Betaferon™ / Betaseron™
 
 
 
 
 
 
 
 
 
Active ingredient
–
–
–
–
–
–
–
–
2016
Eylea™ / Eylia™
 
 
 
 
 
 
 
 
 
Active ingredient
2020
2020
2020
2020
2020
2020a
2020
–
2020
Kogenate™ 
 
 
 
 
 
 
 
 
 
Active ingredient
–
–
–
–
–
–
–
2014
2019
Formulation
2017
2017
2017
2017
2017
2017
2017
2017
2017
Levitra™
 
 
 
 
 
 
 
  
 
Active ingredient
2018
2018
2018
2018
2018
2020
2018
2018
2018
Magnevist™
 
 
 
 
 
 
 
 
 
Process
–
–
–
–
–
–
–
2013
–
Mirena™
 
 
 
 
 
 
 
 
 
Inserter
2015
2015
2015
2015
2015
–
2015
2015
2015
Inserter (improved)
2029d
2029d
2029d
2029d
2029d
2029b
2029
2029b
2029b
Nexavar™
 
 
 
 
 
 
 
 
 
Active ingredient
2021c
2021
2021
2021
2021
2020a
2020
2020
2020
Stivarga™
 
 
 
 
 
 
 
 
 
Active ingredient
2024a
2024a
2024a
2024a
2024a
2024a
2024
2024e
2024b
Xarelto™
 
 
 
 
 
 
 
 
 
Active ingredient
2023c
2023
2023
2023
2023
2024c
2020
2021a
2020
Xofigo™
 
 
 
 
 
 
 
 
 
Application
2019a
2019a
2019a
2019a
2019a
2019
2019
2020a
2019
YAZ™
 
 
 
 
 
 
 
 
 
Formulation
–
–
–
–
–
2021f
2020g
–
2020
Dosage regimen
–
–
–
–
–
2014b
–
–
2014
Production process
2025
2025
2025
2025
2025
2026
2026
2025
2026b
Yasmin™
 
 
 
 
 
 
 
 
 
Formulation
–
–
–
–
–
2020
2020g
–
2020
Production process
2025
2025
2025
2025
2025
2026
2026
2025
2026b
Yasminelle™
 
 
 
 
 
 
 
 
 
Formulation
–
–
–
–
–
2020
2020g
–
2020
Production process
2025
2025
2025
2025
2025
2026
2026
2025
2026b
a	current expiration date; extension applied for
b	patent pending
c	patent expiration date updated
d	opposition to EP patent pending
e	adjustment of patent term under calculation
f   patent extension confirmed
g	opposition appeal pending
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

284
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
18. Property, plant and equipment
18. Property, plant and equipment
Changes in property, plant and equipment in 2013 were as follows:
Impairment losses totaling €48 million were recognized on property, plant and equipment in the MaterialScience seg-
ment (€17 million), Other Segments (€14 million), the Consumer Health segment (€7 million), the Pharmaceuticals seg-
ment (€7 million) and the CropScience segment (€3 million). They included €14 million resulting from the subgroups’ 
restructuring programs. 
In 2013, borrowing costs of €34 million (2012: €20 million) were capitalized as components of the cost of acquisition or 
construction of qualifying assets, applying an average interest rate of 3.8% (2012: 3.8%).
Capitalized property, plant and equipment included assets with a total net value of €439 million (2012: €447 million) 
held under finance leases. The cost of acquisition or construction of these assets as of the closing date totaled €695 mil-
lion (2012: €1,185 million). They comprised plant installations and machinery with a carrying amount of €201 million 
(2012: €204 million), buildings with a carrying amount of €126 million (2012: €126 million) and other property, plant 
and equipment with a carrying amount of €112 million (2012: €117 million). For information on the liabilities arising 
from finance leases, see Note [27].
In 2013, rental payments of €215 million (2012: €226 million) were made for assets leased under operating leases as 
defined in IAS 17 (Leases).  
Changes in Property, Plant and Equipment
[Table 4.47]
 
Land and  
buildings 
 
Plant  
installations  
and  
machinery
Furniture,  
fixtures and 
other  
equipment  
Construction in 
progress  
and advance  
payments 
Total  
 
 
 
€ million 
€ million 
€ million 
€ million 
€ million 
Cost of acquisition or construction,  
December 31, 2012
 
8,273
 
16,555
 
1,854
 
1,343
 
28,025
Changes in scope of consolidation
10
11
5
–
26
Acquisitions
21
15
3
16
55
Capital expenditures
196
406
190
980
1,772
Retirements
(119)
(387)
(162)
(8)
(676)
Transfers
217
360
32
(609)
–
Transfers (IFRS 5)
–
–
–
–
–
Inflation adjustment (IAS 29)
5
2
–
1
8
Remeasurement (IFRS 3)
–
–
–
–
–
Exchange differences
(228)
(406)
(69)
(52)
(755)
December 31, 2013
8,375
16,556
1,853
1,671
28,455
 
 
 
 
 
 
Accumulated depreciation  
and impairment losses,  
December 31, 2012
 
 
4,539
 
 
12,214
 
 
1,370
 
 
4
 
 
18,127
Changes in scope of consolidation
12
8
3
–
23
Retirements
(82)
(363)
(144)
(7)
(596)
Depreciation and impairment losses in 2013
276
844
208
9
1,337
Depreciation
264
826
199
–
1,289
Impairment losses
12
18
9
9
48
Impairment loss reversals
–
–
–
–
–
Transfers
2
(1)
(1)
–
–
Transfers (IFRS 5)
–
–
–
–
–
Exchange differences
(117)
(288)
(46)
–
(451)
December 31, 2013
4,630
12,414
1,390
6
18,440
Carrying amounts, December 31, 2013
3,745
4,142
463
1,665
10,015
Carrying amounts, December 31, 2012
3,734
4,341
484
1,339
9,898
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

285
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
18. Property, plant and equipment
Lease payments of €3 million are expected to be received in 2014 from operating leases – as defined in IAS 17 (Leases) 
– pertaining to property, plant and equipment. Lease payments totaling €7 million are expected to be received in 
2015 – 2018. No lease payments are expected to be received after 2018.
Investment property
The fair values of investment property are mainly determined using the income approach based on internal valuations 
for buildings and developed sites, and using the market comparison approach for undeveloped sites. 
The total carrying amount of investment property as of December 31, 2013, was €173 million (December 31, 2012: 
€90 million). The fair value of this property was €540 million (2012: €236 million). The rental income from investment 
property was €20 million (2012: €21 million), and the operating expenses directly allocable to this property amounted 
to €12 million (2012: €4 million). A further amount of €4 million (2012: €0 million) in operating expenses was directly 
allocable to investment property from which no rental income was derived.
The increase in the fair value of investment property was mainly due to the classification of further property as invest-
ment property and the general rise in the prices of land and buildings.
Changes in property, plant and equipment in 2012 were as follows:
Changes in Property, Plant and Equipment (Previous Year)
[Table 4.48]
 
Land and  
buildings 
 
Plant  
installations  
and  
machinery
Furniture,  
fixtures  
and other  
equipment  
Construction  
in progress  
and advance  
payments 
Total  
 
 
 
€ million 
€ million 
€ million 
€ million 
€ million 
Cost of acquisition or construction,  
December 31, 2011
 
8,361
 
16,264
 
1,792
 
953
 
27,370
Changes in scope of consolidation
–
–
(2)
1
(1)
Acquisitions
2
10
–
1
13
Capital expenditures
142
321
182
925
1,570
Retirements
(225)
(210)
(123)
(12)
(570)
Transfers
126
345
26
(506)
(9)
Transfers (IFRS 5)
(65)
(14)
(2)
–
(81)
Inflation adjustment (IAS 29)
2
1
–
–
3
Remeasurement (IFRS 3)
–
–
–
–
–
Exchange differences
(70)
(162)
(19)
(19)
(270)
December 31, 2012
8,273
16,555
1,854
1,343
28,025
Accumulated depreciation  
and impairment losses,  
December 31, 2011
 
 
4,490
 
 
11,668
 
 
1,315
 
 
10
 
 
17,483
Changes in scope of consolidation
–
–
(2)
–
(2)
Retirements
(196)
(191)
(114)
(10)
(511)
Depreciation and impairment losses in 2012
303
854
188
5
1,350
Depreciation
283
838
188
–
1,309
Impairment losses
20
16
–
5
41
Impairment loss reversals
–
–
–
–
–
Transfers
(1)
5
(5)
1
–
Transfers (IFRS 5)
(18)
(5)
(1)
–
(24)
Exchange differences
(39)
(117)
(11)
(2)
(169)
December 31, 2012
4,539
12,214
1,370
4
18,127
Carrying amounts, December 31, 2012
3,734
4,341
484
1,339
9,898
Carrying amounts, December 31, 2011
3,871
4,596
477
943
9,887
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

286
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
19. Investments accounted for using the equity method
19. Investments accounted for using the equity method
Two (2012: two) associated companies and three (2012: three) joint ventures were ­accounted for using the equity 
method. 
In 2000 Bayer acquired the polyols business and parts of the propylene oxide (PO) production operations of Lyondell 
Chemicals with the objective of ensuring access to patented technologies and safeguarding the long-term supply of 
PO, a starting product for polyurethane. As part of this strategy, a company was established to produce PO (PO JV, LP, 
United States, in which Bayer holds a 39.7% interest). Bayer benefits from fixed long-term supply quotas / volumes of 
PO from this company’s production. The two following tables contain summarized data from the income statements 
and statements of financial position of the associated company PO JV, LP, United States, which is accounted for using 
the equity method, and show the respective amounts recognized in the consolidated financial statements of the  
Bayer Group.
The item “Other” mainly comprised differences arising from adjustments of data to Bayer’s uniform accounting 
­policies, purchase price allocations and their amortization in profit or loss.
Associated Companies and Joint Ventures Accounted for Using the Equity Method
[Table 4.49]
Company Name
Place of Business
Bayer’s interest
 
 
 %
Associated companies
 
 
Paltough Industries (1998) Ltd.
Kibbutz Ramat Yochanan, Israel
25
PO JV, LP
Wilmington, U.S.A.
39.7
Joint ventures
 
 
Bayer IMSA, S.A. de C.V.
Nuevo Leon, Mexico
50
Bayer Zydus Pharma Private Limited
Mumbai, India
50
DIC Bayer Polymer Ltd.
Tokyo, Japan
50
Income Statement Data of PO JV, LP, Accounted for Using the Equity Method
[Table 4.50]
 
2012
2013
 
€ million 
€ million 
Net sales
2,242
2,217
Net loss after taxes
(53)
(46)
Share of net loss after taxes
(21)
(18)
Share of total comprehensive income after taxes
(21)
(18)
Gain (loss) after taxes from impairments / derecognition of other interests
–
(2)
Recognized loss after taxes of PO JV, LP, accounted for using the equity method
(21)
(20)
2012 figures restated
Data from the Statements of Financial Position of PO JV, LP, Accounted for Using the Equity Method
[Table 4.51]
 
Dec. 31, 2012
Dec. 31, 2013
 
€ million 
€ million 
Noncurrent assets
481
441
Current liabilities
4
–
Equity
477
441
Share of equity
189
175
Other
7
(1)
Carrying amount of PO JV, LP, accounted for using the equity method
196
174
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

287
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
20. Other financial assets
The following table contains summarized income statement data of the individually non-material associated company 
Paltough Industries (1998) Ltd., Israel, which is accounted for using the equity method, and shows its carrying amount 
in the consolidated financial statements of the Bayer Group.
The following table contains the summarized aggregated income statement data of the individually non-material 
joint ventures accounted for using the equity method and shows their aggregated carrying amount in the consolidat-
ed financial statements of the Bayer Group.
20. Other financial assets
The other financial assets were comprised as follows:
Income Statement Data and Carrying Amount of Paltough Industries (1998) Ltd.
[Table 4.52]
 
2012
2013
 
€ million 
€ million 
Income after taxes
9
4
Share of income after taxes
2
1
Share of total comprehensive income after taxes
2
1
Carrying amount of the investment in Paltough Industries (1998) Ltd.,  
accounted for using the equity method
 
19
 
20
Income Statement Data and Carrying Amount of Joint Ventures Accounted for Using the Equity Method
[Table 4.53]
 
2012
2013
 
€ million 
€ million 
Income after taxes
3
6
Share of income after taxes
2
4
Share of total comprehensive income after taxes
2
4
Gain (loss) after taxes from impairments / derecognition of other interests
(1)
(1)
Recognized income after taxes of joint ventures accounted for using the equity method
1
3
Carrying amount of joint ventures accounted for using the equity method
10
9
2012 figures restated
Other Financial Assets
[Table 4.54]
Dec. 31, 2012
Dec. 31, 2013
 
 
Total
Of which  
current
 
Total
Of which  
current
 
€ million 
€ million 
€ million 
€ million 
Loans and receivables
842
88
815
67
Available-for-sale financial assets
344
133
298
133
of which debt instruments
235
133
238
133
of which equity instruments
109
–
60
–
Held-to-maturity financial investments
102
10
96
5
Non-derivative held-for-trading financial assets
196
196
–
–
Receivables from derivatives
647
405
765
574
Receivables under lease agreements
34
25
8
–
Total
2,165
857
1,982
779
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

288
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
21. Inventories
The loans and receivables mainly comprised capital with a nominal volume of €595 million (2012: €595 million) provid-
ed to Bayer-Pensionskasse VVaG (Bayer-Pensionskasse) for its effective initial fund, and jouissance right capital (Ge-
nussrechtskapital) with a nominal volume of €150 million (2012: €150 million), also provided to Bayer-Pensionskasse. 
The debt instruments reported as available-for-sale financial assets comprised German treasury bills in the amount of 
€125 million (2012: €125 million). These treasury bills, which were lent to a bank, continue to be recognized as avail-
able-for-sale financial assets because the related risks and rewards remain with Bayer. Upon maturity or redemption of 
the treasury bills, Bayer is obligated to replace them with German government securities until 2016. 
The equity instruments reported as available-for-sale financial assets included €22 million (2012: €32 million) in instru-
ments whose fair value could not be determined from a stock exchange or other market price or by discounting reliably 
determinable future cash flows. These equity instruments were recognized at cost. 
In 2013, impairment losses totaling €2 million (2012: €6 million) on available-for-sale financial assets were recognized 
in profit or loss.
Unimpaired other financial assets of €8 million (2012: €10 million) were past due on the closing date.
Further information on the accounting for receivables from derivatives is given in Note [30].
Receivables under lease agreements relate to finance leases where Bayer is the lessor and the economic owner of the 
leased assets is the lessee. These receivables comprised expected lease payments of €48 million (2012: €75 million), 
­including €40 million (2012: €41 million) in interest. Of the expected lease payments, €1 million (2012: €26 million) is 
due within one year, €4 million (2012: €4 million) within the following four years and €43 million (2012: €45 million) 
in subsequent years.
21. Inventories
Inventories were comprised as follows: 
Inventories
[Table 4.55]
 
Dec. 31, 2012
Dec. 31, 2013
 
€ million 
€ million 
Raw materials and supplies
1,353
1,369
Work in process, finished goods and goods purchased for resale
5,625
5,745
Advance payments
13
15
Total
6,991
7,129
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

289
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
22. Trade accounts receivable
Impairment losses recognized on inventories were reflected in the cost of goods sold. They were comprised as follows:
22. Trade accounts receivable
Trade accounts receivable less impairment losses amounted to €7,569 million (2012: €7,433 million) on the closing date 
and were comprised as follows: 
Changes in impairment losses on trade accounts receivable were as follows:
Impairments of Inventories
[Table 4.56]
 
2012
2013
 
€ million 
€ million 
Accumulated impairment losses, January 1
(404)
(384)
Changes in scope of consolidation
–
2
Impairment losses in the reporting period
(208)
(214)
Impairment loss reversals or utilization
223
149
Exchange differences
5
24
Accumulated impairment losses, December 31
(384)
(423)
2012 figures restated
Trade Accounts Receivable
[Table 4.57]
 
2012
2013
 
€ million 
€ million 
Trade accounts receivable (before impairments)
7,673
7,769
Accumulated impairment losses
(240)
(200)
Carrying amount, December 31
7,433
7,569
of which noncurrent
10
18
2012 figures restated
Impairments of Trade Accounts Receivable
[Table 4.58]
 
2012
2013
 
€ million 
€ million 
Accumulated impairment losses, January 1
(243)
(240)
Changes in scope of consolidation
–
–
Impairment losses in the reporting period
(66)
(66)
Impairment loss reversals or utilization
60
85
Exchange differences
9
21
Accumulated impairment losses, December 31
(240)
(200)
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

290
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
22. Trade accounts receivable
Trade accounts receivable amounting to €7,499 million (2012: €7,322 million) were not individually impaired. Of this 
amount, €1,222 million (2012: €1,095 million) was past due or due immediately on the closing date.
The amounts of impaired and past-due trade accounts receivable are summarized in the following table:
The gross carrying amount of individually impaired trade accounts receivable was €193 million (2012: €248 million). 
The impairment losses recognized on these assets totaled €123 million (2012: €137 million), resulting in a net carrying 
amount of €70 million (2012: €111 million).
The unimpaired receivables were deemed to be collectible on the basis of established credit management processes 
and individual assessments of customer risks. The impairment losses recognized included an appropriate allowance for 
the default risk as of the end of the reporting period. 
Receivables from government health service institutions, especially in Greece, Italy, Portugal and Spain, are under spe-
cial observation in view of the government debt crisis. Although there were no material defaults on such receivables in 
2013 or 2012, it is possible that future developments in these countries could result in payment delays and / or defaults. 
This could necessitate the recognition of impairment losses due to new occurrences. Trade accounts receivable from 
government health service institutions in the above countries at the end of 2013 totaled €231 million (2012: €240 mil-
lion).
An excess-of-loss policy exists for the HealthCare subgroup as part of a global credit insurance program. More than 
80% of the receivables of the HealthCare subgroup are insured up to a maximum total annual compensation payment 
of €100 million. A further €438 million of receivables was secured by advance payments, letters of credit or guarantees 
or by liens on land, buildings or harvest yields.
Impaired and Past-Due Trade Accounts Receivable
[Table 4.59]
Of which  
neither 
impaired  
nor past due  
at the  
closing date
 
 
Of which  
unimpaired but  
past due at the  
closing date
 
 
Of which  
impaired  
at the  
closing date
 
Carrying  
amount
up to  
3 months 
3 – 6  
months 
6 – 12  
months 
more than  
12 months 
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
December 31, 2013
7,569
6,277
848
130
104
140
70
December 31, 2012
7,433
6,227
743
144
104
104
111
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

291
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
23. Other receivables
23. Other receivables
Other receivables, after impairment losses of €4 million (2012: €60 million), were comprised as follows:
The reimbursement claims of €321 million (2012: €607 million) consisted mainly of receivables from insurance compa-
nies in connection with product liability claims. 
Of the €526 million (2012: €634 million) in financial receivables included in other receivables, €524 million (2012: 
€606 million) was unimpaired. Of this amount, €204 million (2012: €221 million) was past due or due immediately on 
the closing date. The gross carrying amount of individually impaired other receivables was €6 million (2012: €88 mil-
lion). The impairment losses recognized on these assets totaled €4 million (2012: €60 million), resulting in a net carry-
ing amount of €2 million (2012: €28 million).
The amounts of impaired and past-due financial receivables included in other receivables are summarized in the 
­following table:
Other Receivables
[Table 4.60]
Dec. 31, 2012
Dec. 31, 2013
 
 
Total
Of which  
current
 
Total
Of which  
current
 
€ million 
€ million 
€ million 
€ million 
Benefit plan assets in excess of obligation
27
–
117
–
Receivables from employees
43
43
41
41
Other tax receivables
562
474
577
504
Deferred charges
232
205
269
240
Reimbursement claims
607
599
321
321
Miscellaneous receivables
725
334
647
370
Total
2,196
1,655
1,972
1,476
2012 figures restated
Impaired and Past-Due Other Financial Receivables
[Table 4.61]
Of which  
neither 
impaired  
nor past due  
at the  
closing date
 
 
Of which  
unimpaired but  
past due at the  
closing date
 
 
Of which 
impaired  
at the  
closing date
 
Carrying  
amount
up to  
3 months
3 – 6  
months
6 – 12  
months
more than  
12 months
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
December 31, 2013
526
320
148
12
18
26
2
December 31, 2012
634
385
172
17
13
19
28
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

292
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
24. Equity
24. Equity
The foremost objectives of our financial management are to help bring about a sustained increase in the value of the 
Bayer Group for the benefit of all stakeholders, and to ensure the Group’s creditworthiness and liquidity. The pursuit of 
these goals means reducing our cost of capital, optimizing our capital structure, improving our financing cash flow and 
effectively managing risk.
The rating agencies commissioned by Bayer assess the creditworthiness of the Bayer Group as follows: 
These investment-grade ratings reflect the company’s good creditworthiness and ensure access to a broad investor 
base for financing purposes. Bayer’s capital management strategy is based on the debt ratios published by the rating 
agencies, which – by somewhat differing methods – look at the cash flow for a given period in relation to debt. The fi-
nancial strategy of the Bayer Group focuses on an “A” rating and on preserving our financial flexibility. Apart from uti-
lizing cash inflows from our operating business to reduce net financial debt, we are implementing our financial strategy 
by way of vehicles such as the subordinated hybrid bond issued in July 2005, the authorized and conditional capital 
amounts created by resolutions of the Annual Stockholders’ Meeting, and a potential share buyback program. Bayer’s 
Articles of Incorporation do not stipulate capital ratios.
The changes in the various components of equity during 2012 and 2013 are shown in the consolidated statements of 
changes in equity.
Capital stock
The capital stock of Bayer AG on December 31, 2013 amounted to €2,117 million (2012: €2,117 million), divided into 
826,947,808 (2012: 826,947,808) registered shares, and was fully paid in. Each share confers one voting right.
Authorized capital
Authorized capital of €530 million was approved by the Annual Stockholders’ Meeting on April 30, 2010. It expires on 
April 29, 2015. It can be used to increase the capital stock by issuing new no-par registered shares against cash con-
tributions and / or contributions in kind, but capital increases against contributions in kind may not exceed a total of 
€423 million (Authorized Capital I). Stockholders must normally be granted subscription rights. However, subject to 
the approval of the Supervisory Board, the Board of Management is authorized to exclude subscription rights for the 
stockholders with respect to any excess shares remaining after rights have been allocated (fractional amounts) and 
also to the extent necessary to grant subscription rights for new shares to holders of bonds with optional or mandatory 
warrants or conversion rights issued by Bayer AG or its Group companies who would be entitled to subscription rights 
upon the exercise of such optional or mandatory warrants or conversion rights. In addition, the Board of Management 
is authorized to exclude stockholders’ subscription rights, subject to the approval of the Supervisory Board, in cases 
where an increase in capital against contributions in kind is carried out for the purpose of acquiring companies, parts 
of companies, participating interests in companies or other assets. The amount of capital stock represented by shares 
issued in the above cases against cash contributions and / or contributions in kind without granting subscription rights 
to the stockholders must not exceed a total of 20% of the capital stock that existed on the date the authorized capital 
was approved by the Annual Stockholders’ Meeting.
Rating
[Table 4.62]
 
Long-term rating
Outlook
Short-term rating
Standard & Poor’s
A – 
positive
A – 2
Moody’s
A3
positive
P – 2
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

293
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
24. Equity
Further authorized capital was approved by the Annual Stockholders’ Meeting on April 30, 2010. The Board of Man-
agement is authorized until April 29, 2015 to increase the capital stock, subject to the approval of the Supervisory 
Board, by a total amount of up to €212 million by issuing new no-par registered shares against cash contributions 
­(Authorized Capital II). Under the resolution adopted by the Annual Stockholders’ Meeting, stockholders must normally 
be granted subscription rights. However, the Board of Management is authorized to exclude subscription rights for 
stockholders with respect to one or more capital increases out of the Authorized Capital II, subject to the approval of 
the Supervisory Board, provided that such capital increase or the total of such capital increases does not exceed 10% 
of the capital stock existing at the time this authorization becomes effective or the time it is exercised, for purposes of 
issuing new shares against cash contributions at a price that is not significantly below the market price of the compa-
ny’s shares of the same category that are already listed on the stock exchange on the date the issue price is finally de-
termined. Any treasury shares acquired on the basis of an authorization of the Stockholders’ Meeting and sold pursuant 
to Section 71 Paragraph 1 No. 8 Sentence 5 of the German Stock Corporation Act in conjunction with Section 186 Para-
graph 3 Sentence 4 of the German Stock Corporation Act during the term of this authorization shall count toward the 
above 10% limit. Shares issued or to be issued to service bonds with optional or mandatory warrants or conversion 
rights shall also count toward this limit where such bonds were issued during the term of this authorization and stock-
holders’ subscription rights were excluded by application of Section 186 Paragraph 3 Sentence 4 of the German Stock 
Corporation Act.
Neither of these authorized capital amounts has been utilized so far.
Conditional capital
The Annual Stockholders’ Meeting on April 30, 2010 approved the creation of Conditional Capital 2010, authorizing a 
conditional increase of up to €212 million in the capital stock through the issuance of up to 82,694,750 shares. This 
conditional capital increase may be used to grant registered shares to the holders of warrant bonds, convertible bonds, 
jouissance rights (Genussrechte) or profit participation bonds (or combinations of these instruments) with optional or 
mandatory warrants or conversion rights, issued by Bayer AG or a Group company in which Bayer AG holds a direct or 
indirect interest of at least 90% on or before April 29, 2015 in accordance with authorizations granted by the Annual 
Stockholders’ Meeting of April 30, 2010. The authorization to issue such instruments is limited to a total nominal 
amount of €6 billion. In principle, stockholders have a statutory right to be granted subscription rights to such instru-
ments. However, the Board of Management is authorized to exclude subscription rights, subject to the approval of the 
Supervisory Board, if the instruments are issued at a price that is not significantly below the market price. The limit of 
10% of the capital stock for the exclusion of stockholders’ subscription rights in analogous application of Section 186 
Paragraph 3 Sentence 4 of the German Stock Corporation Act may not be exceeded. Both shares and other such instru-
ments shall count toward this limit if they were issued without granting subscription rights to the stockholders in direct 
or analogous application of Section 186 Paragraph 3 Sentence 4 of the German Stock Corporation Act.
Absent a further resolution of the Annual Stockholders’ Meeting on the exclusion of stockholders’ subscription rights, 
the Board of Management will only use the existing authorizations to increase the capital stock out of the Authorized 
Capital or the Conditional Capital – without granting subscription rights to the stockholders – up to a total amount of 
20% of the capital stock that existed when the respective resolutions were adopted by the Annual Stockholders’ Meet-
ing on April 30, 2010. This 20% limit includes all issuances or sales of shares or of bonds with optional or mandatory 
warrants or conversion rights that are effected without granting subscription rights to the stockholders.
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

294
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
24. Equity
Accumulated comprehensive income
Accumulated comprehensive income comprises retained earnings and accumulated other comprehensive income. The 
retained earnings include prior years’ undistributed income of consolidated companies and all remeasurements of the 
net liability for defined benefit pension and other post-employment benefit plans that are recognized outside profit or 
loss. The accumulated other comprehensive income comprises exchange differences, the changes in fair values of 
cash flow hedges and available-for-sale financial assets, and the revaluation surplus. The latter results from the acqui-
sition in 2005 of the remaining 50% interest in an OTC joint venture with Roche in the United States that was estab-
lished in 1996 and the acquisition in 2008 of the remaining 50% interest in Bayer MaterialScience Oldenburg GmbH & 
Co. KG, Oldenburg, Germany. In 2013, an amount of €5 million (2012: €5 million) corresponding to the annual amorti-
zation / depreciation of the respective assets was transferred from the ­revaluation surplus to retained earnings. The ex-
change differences included an amount of €12 million (2012: €2 million) attributable to associated companies and joint 
ventures accounted for using the equity method.
Dividend
Under the German Stock Corporation Act (AktG), the dividend payment is determined by the distributable profit 
­reported in the annual financial statements of Bayer AG, which are prepared according to the German Commercial 
Code. Retained earnings were diminished by payment of the dividend of €1.90 per share for 2012. The proposed divi-
dend for the 2013 fiscal year is €2.10 per share, which would result in a total dividend payment of €1,737 million. 
­Payment of the proposed dividend is contingent upon approval by the stockholders at the Annual Stockholders’ Meet-
ing and therefore is not recognized as a liability in the consolidated financial statements.
Non-controlling interest
The changes in the non-controlling interest in Group equity during 2012 and 2013 are shown in the following table:
Non-controlling interests exist mainly in the equities of Bayer CropScience Limited, India; Bayer Jinling Polyurethane 
Co. Ltd., China; Bayer Pearl Polyurethane Systems FZCO, United Arab Emirates; Bayer East Africa Ltd., Kenya; and 
­Sumika Bayer Urethane Co. Ltd., Japan. 
Components of Non-Controlling Interest in Equity
[Table 4.63]
 
2012
2013
 
€ million
€ million
January 1
59
100
Changes in equity not recognized in profit or loss
 
 
Exchange differences on translation of operations outside the eurozone
(4)
(14)
Other changes in equity
(3)
6
Dividend payments
(2)
(3)
 
 
 
Changes in equity recognized in profit or loss
50
(3)
 
 
 
December 31
100
86
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

295
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
25. Provisions for pensions and other post-employment benefits
25. Provisions for pensions and other post-employment benefits
The provisions for defined benefit obligations pertaining to pensions and other post-employment benefits  
were as follows: 
The expenses for defined benefit plans for pension and other post-employment benefits comprised the  
following components:
In addition, a total of €1,946 million (2012: minus €2,779 million) in effects of remeasurements of the net defined 
­benefit liability was recognized outside profit or loss in 2013. Of this amount, €1,810 million (2012: minus €2,822 mil-
lion) ­related to pension obligations and €135 million (2012: €44 million) to other post-employment benefit obligations. 
Provisions for Defined Benefit Obligations
[Table 4.64]
 
Pensions
Other post-employment 
benefits
 
Total
 
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
 
€ million
€ million
€ million
€ million
€ million
€ million
Germany
7,430
6,230
–
–
7,430
6,230
Other countries
1,346
807
470
331
1,816
1,138
Total
8,776
7,037
470
331
9,246
7,368
2012 figures restated
Expenses for Defined Benefit Plans
[Table 4.65]
 
Pension plans
Other post-employment 
benefit plans
 
Germany
Other countries
Total
Other countries
2012
2013
2012
2013
2012
2013
2012
2013
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Current service cost
193
287
68
71
261
358
21
22
Past service cost
30
30
6
2
36
32
(58)
(1)
of which plan curtailments
–
–
1
1
1
1
(3)
(1)
Plan settlements
–
–
(63)
(1)
(63)
(1)
1
–
Net interest
259
233
46
48
305
281
27
21
Total
482
550
57
120
539
670
(9)
42
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

296
297
Consolidated Financial Statements
Consolidated Financial Statements
Bayer Annual Report 2013
Bayer Annual Report 2013
Notes
25. Provisions for pensions and other post-employment benefits
Notes
25. Provisions for pensions and other post-employment benefits
The net defined benefit liability developed as follows:
Changes in Net Defined Benefit Liability
[Table 4.66]
 
Pension obligations
Other post-employment 
benefit obligations
Germany
Other countries
Total
Other countries
 
2012
2013
2012
2013
2012
2013
2012
2013
 
€ million 
€ million 
€ million 
€ million 
 
€ million 
€ million 
€ million 
€ million 
Defined benefit obligation as of January 1
12,873
16,049
5,459
5,717
 
18,332
21,766
891
822
Acquisitions 
–
9
1
–
 
1
9
–
–
Divestitures / changes in scope of consolidation
(31)
25
(4)
–
 
(35)
25
–
(1)
Current service cost
193
287
68
71
 
261
358
21
22
Interest cost
573
509
248
221
 
821
730
41
33
Employee contributions
35
35
6
6
 
41
41
–
–
Past service cost
30
30
5
1
 
35
31
(55)
–
Plan curtailments
–
–
1
1
 
1
1
(3)
(1)
Plan settlements
–
–
(336)
–
 
(336)
–
1
–
Net actuarial (gain) loss
2,985
(1,453)
596
(392)
 
3,581
(1,845)
(13)
(81)
of which due to changes in financial assumptions
2,875
(1,485)
478
(365)
 
3,353
(1,850)
61
(86)
of which due to changes in demographic assumptions
–
–
55
6
 
55
6
(21)
1
of which due to experience adjustments
110
32
63
(33)
 
173
(1)
(53)
4
Benefits paid out of plan assets
(208)
(209)
(242)
(251)
 
(450)
(460)
(22)
(10)
Benefits paid by the company
(401)
(412)
(36)
(31)
 
(437)
(443)
(17)
(12)
Exchange differences
–
–
(49)
(252)
 
(49)
(252)
(22)
(51)
Defined benefit obligation as of December 31
16,049
14,870
5,717
5,091
 
21,766
19,961
822
721
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets as of January 1
6,927
8,640
4,264
4,390
 
11,191
13,030
336
352
Acquisitions
–
–
–
–
 
–
–
–
–
Divestitures / changes in scope of consolidation
(25)
21
–
–
 
(25)
21
–
–
Interest income
314
276
202
173
 
516
449
14
12
Return on plan assets excluding amounts recognized as interest income
411
(114)
348
79
 
759
(35)
31
54
Plan settlements 
–
–
(273)
(1)
 
(273)
(1)
–
–
Employer contributions 
1,186
86
131
117
 
1,317
203
–
3
Employee contributions
35
35
6
6
 
41
41
–
–
Benefits paid
(208)
(209)
(242)
(251)
 
(450)
(460)
(22)
(10)
Exchange differences
–
–
(46)
(201)
 
(46)
(201)
(7)
(18)
Fair value of plan assets as of December 31
8,640
8,735
4,390
4,312
 
13,030
13,047
352
393
 
 
 
 
 
 
 
 
 
 
Funded status as of December 31
(7,409)
(6,135)
(1,327)
(779)
 
(8,736)
(6,914)
(470)
(328)
 
 
 
 
 
 
 
 
 
 
Effects of the asset ceiling as of January 1
–
–
(16)
(13)
 
(16)
(13)
–
–
Newly arisen during the year / other changes
–
–
1
1
 
1
1
–
–
Exchange differences
–
–
2
3
 
2
3
–
–
Effects of the asset ceiling as of December 31
–
–
(13)
(9)
 
(13)
(9)
–
–
 
 
 
 
 
 
 
 
 
 
Net defined benefit liability as of December 31
(7,409)
(6,135)
(1,340)
(788)
 
(8,749)
(6,923)
(470)
(328)
of which benefit plan assets in excess of obligation (net assets)
21
95
6
19
 
27
114
–
3
of which provisions for pensions and other post-employment benefits  
(net liability)
 
(7,430)
 
(6,230)
 
(1,346)
 
(807)
 
 
 
(8,776)
 
(7,037)
 
(470)
 
(331)
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS  
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

298
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
25. Provisions for pensions and other post-employment benefits
The benefit obligations pertained mainly to Germany (72%; 2012: 71%), the United States (14%; 2012: 15%) and the 
United Kingdom (7%; 2012: 6%). 
The actual return on the assets of defined benefit plans for pensions or other post-employment benefits amounted to 
€414 million (2012: €1,275 million) and €66 million (2012: €45 million), respectively. 
The following table shows the defined benefit obligations for pensions and other post-employment benefits along with 
the funded status of the funded obligations.
Pension and other post-employment benefit obligations
Group companies provide retirement benefits for most of their employees, either directly or by contributing to privately 
or publicly administered funds. The way these benefits are provided varies according to the legal, fiscal and economic 
conditions of each country, the benefits generally being based on employee compensation and years of service. The ob-
ligations relate both to existing retirees’ pensions and to pension entitlements of future retirees.
The Bayer Group has set up funded pension plans for its employees in various countries. The most appropriate invest-
ment strategy is determined for each defined benefit pension plan based on the risk structure of the obligations (espe-
cially demographics, the current funded status, the structure of the expected future cash flows, interest sensitivity, bio-
metric risks etc.), the regulatory environment and the existing level of risk tolerance or risk capacity. A strategic target 
investment portfolio is then developed in line with the plan’s risk structure, taking capital market factors into consider-
ation. Further determinants are risk diversification, portfolio efficiency and the need for both a country-specific and a 
global risk / return profile centered on ensuring the payment of all future benefits. As the capital investment strategy for 
each pension plan is developed individually in light of the plan-specific conditions listed above, the investment strate-
gies for different pension plans may vary considerably. For example, the proportion of plan assets invested in equities 
is greater with the non-German pension plans than with the plans domiciled in Germany. The investment strategies are 
generally aligned less toward maximizing absolute returns and more toward the reasonable assurance of financing pen-
sion commitments over the long term. For plan assets, stress scenarios are simulated and other risk analyses (such as 
value at risk) undertaken with the aid of risk management systems. 
Defined Benefit Obligation and Funded Status
[Table 4.67]
 
Pension obligations
Other post-employment 
benefit obligations
 
Total
 
2012
2013
2012
2013
2012
2013
 
€ million 
€ million 
€ million 
€ million 
 € million
€ million 
Defined benefit obligations
21,766
19,961
822
721
22,588
20,682
of which unfunded
849
794
120
95
969
889
of which funded
20,917
19,167
702
626
21,619
19,793
 
 
 
 
 
 
 
Funded status of funded obligations
 
 
 
 
 
 
Overfunding
41
124
–
3
41
127
Underfunding
7,928
6,244
350
236
8,278
6,480
2012 figures restated
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299
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
25. Provisions for pensions and other post-employment benefits
Bayer-Pensionskasse VVaG (Bayer-Pensionskasse), Leverkusen, Germany, is by far the most significant of the pension 
plans. It was closed to new members effective January 1, 2005. This legally independent fund is regarded as a life in-
surance company and is therefore subject to the German Insurance Supervision Act. The benefit obligations covered by 
Bayer-Pensionskasse comprise retirement, surviving dependents’ and disability pensions. It constitutes a multi-employ-
er plan, to which the active members and their employers contribute. The company contribution is a certain percentage 
of the employee contribution. This percentage is the same for all participating employers, including those outside the 
Bayer Group, and is set by agreement between the plan’s executive committee and supervisory board, acting on a pro-
posal from the responsible actuary. It takes into account the differences between the actuarial estimates and the actual 
values for the factors used to determine liabilities and contributions. Bayer may also adjust the company contribution 
in agreement with the plan’s executive committee and supervisory board, acting on a proposal from the responsible 
­actuary. The plan’s liability is governed by Section 1, Paragraph 1, Sentence 3 of the German Law on the Improvement 
of Occupational Pensions. This means that if the pension plan exercises its right under the articles of association to 
­reduce benefits, each participating employer has to make up the resulting difference. Bayer is not liable for the obliga-
tions of participating employers outside the Bayer Group, even if they cease to participate in the plan.
Pension entitlements for people who joined Bayer in Germany on or after January 1, 2005 are granted via Rheinische 
Pensionskasse VVaG, Leverkusen. Future pension payments from this plan are based on contributions and the return 
on plan assets; a guaranteed interest rate applies. 
Another important pension provision vehicle is Bayer Pension Trust e.V. (BPT). This covers further retirement provision 
arrangements of the Bayer Group, deferred compensation, pension obligations previously administered by Schering Al-
tersversorgung Treuhand e.V., and components of other direct commitments. 
The defined benefit pension plans in the United States have been frozen for some years, and no significant new entitle-
ments can be earned under these plans. The assets of all the U.S. pension plans are held by a master trust for reasons 
of efficiency. The applicable regulatory framework is based on the Employee Retirement Income Security Act (ERISA), 
which includes a statutory 80% minimum funding requirement to avoid benefit restrictions. The actuarial risks, such as 
investment risk, interest-rate risk and longevity risk, remain with the company. In 2012, all former employees of U.S. 
companies who had not yet reached retirement age were offered a lump-sum payment. Acceptances of this offer re-
duced the defined benefit obligation by €334 million and plan assets by €273 million.
The defined benefit pension plans in the United Kingdom are closed to new members. Plan assets in the U.K. are 
­administered by independent trustees, who are legally obligated to act solely in the interests of the beneficiaries. A 
technical assessment is performed every three years in line with U.K. regulations. This serves as the basis for develop-
ing a plan to cover any potential financing requirements. Here, too, the actuarial risks remain with the company.
The other post-employment benefit obligations outside Germany mainly related to retirees’ health care benefit 
­payments in the United States.
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300
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
25. Provisions for pensions and other post-employment benefits
The fair value of the plan assets to cover pensions and other post-employment benefit obligations was as follows:
The fair value of plan assets in Germany included real estate leased by Bayer, recognized at a fair value of €67 million 
(2012: €71 million), and Bayer shares held through investment funds, recognized at their fair value of €49 million 
(2012: €37 million). The other plan assets comprise mortgage loans granted, other receivables and qualified insurance 
policies.
 
Risks
The risks from defined benefit plans arise partly from the defined benefit obligations and partly from the investment in 
plan assets. The risks lie in the possibility that higher direct pension payments will have to be made to the beneficiaries 
and / or that additional contributions will have to be made to plan assets in order to meet current and future pension 
­obligations.
Demographic / biometric risks
Since a large proportion of the defined benefit obligations comprises lifelong pensions or surviving dependents’ 
­pensions, longer claim periods or earlier claims may result in higher benefit obligations, higher benefit expense and / or 
higher pension payments than previously anticipated.
Plan Assets to Cover Pension Obligations as of December 31
[Table 4.68]
 
Pension obligations
Other post-employment  
obligations
Germany
Other countries
Other countries
 
2012
2013
2012
2013
2012
2013
 
€ million
€ million
€ million
€ million
€ million
€ million
Plan assets based on quoted prices  
in active markets
 
 
 
 
 
 
Real estate and special real estate funds
–
–
155
168
14
16
Equities and equity funds
1,310
1,724
1,560
1,490
137
110
Callable debt instruments
–
–
151
146
3
–
Non-callable debt instruments
–
–
439
952
75
155
Bond funds
2,065
2,911
1,101
755
64
6
Derivatives
27
8
46
89
6
1
Cash and cash equivalents
1,251
369
86
115
9
14
Other
–
–
361
236
–
–
 
4,653
5,012
3,899
3,951
308
302
Plan assets for which quoted prices  
in active markets are not available
 
 
 
 
 
 
Real estate and special real estate funds
518
532
40
36
–
–
Equities and equity funds
49
51
53
52
–
–
Callable debt instruments
1,277
1,213
7
8
–
–
Non-callable debt instruments
1,880
1,678
19
–
–
–
Bond funds
–
–
54
50
–
–
Derivatives
1
–
–
–
–
–
Other
262
249
318
215
44
91
 
3,987
3,723
491
361
44
91
Total plan assets
8,640
8,735
4,390
4,312
352
393
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301
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
25. Provisions for pensions and other post-employment benefits
Investment risks
If the actual return on plan assets were below the return anticipated on the basis of the discount rate, the net defined 
benefit liability would increase, assuming there were no changes in other parameters. This could happen as a result of 
a drop in share prices, increases in market rates of interest, default of individual debtors or the purchase of low-risk 
but low-interest bonds, for example.
Interest-rate risks
A decline in capital market interest rates, especially for high-quality corporate bonds, would increase the defined 
­benefit obligation. This effect would be at least partially offset by the ensuing increase in the market values of the debt 
instruments held.  
Measurement parameters and their sensitivities
The following weighted parameters were used to measure the pension obligations as of December 31 and the expense 
for pensions and other post-employment benefits in the respective year: 
In Germany the Heubeck 2005 G mortality tables were used, in the United States the RP-2000 Combined Healthy Mor-
tality Tables, and in the United Kingdom 95% of S1NXA.
Parameters for Benefit Obligations
[Table 4.69]
 
Germany
Other countries
Total
2012
2013
2012
2013
2012
2013
 
%
%
%
%
%
%
Pension obligations
 
 
 
 
 
 
Discount rate
3.20
3.80
4.05
4.70
3.45
4.05
of which U.S.A.
 
 
3.60
4.50
3.60
4.50
of which U.K.
 
 
4.40
4.60
4.40
4.60
Projected future salary increases
3.00
3.00
3.85
3.95
3.20
3.25
Projected future benefit increases
1.75
1.75
3.20
3.60
2.15
2.20
Other post-employment benefit obligations
 
 
 
 
 
 
Discount rate
–
–
4.15
4.90
4.15
4.90
2012 figures restated
Parameters for Benefit Expense
[Table 4.70]
 
Germany
Other countries
Total
2012
2013
2012
2013
2012
2013
 
%
%
%
%
%
%
Pension obligations
 
 
 
 
 
 
Discount rate
4.50
3.20
4.60
4.05
4.50
3.45
Projected future salary increases
3.00
3.00
3.65
3.85
3.20
3.20
Projected future benefit increases
1.75
1.75
3.15
3.20
2.15
2.15
Other post-employment benefit obligations
 
 
 
 
 
 
Discount rate
–
–
4.80
4.15
4.80
4.15
2012 figures restated
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302
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
25. Provisions for pensions and other post-employment benefits
The parameter sensitivities were computed by expert actuaries based on a detailed evaluation similar to that per-
formed to obtain the data presented in Table 4.66. Altering individual parameters by 0.5 percentage points (mortality 
by 10 percent per beneficiary) while leaving the other parameters unchanged would have impacted pension and oth-
er post-employment benefit obligations as of year end 2013 as follows:
Provisions are also set up for the obligations, mainly of U.S. subsidiaries, to provide post-employment benefits in the 
form of health care cost payments to retirees. The valuation of health care costs was based on the assumption that they 
will increase at a rate of 7.5% (assumption in 2012: 8.0%), which should gradually decline to 5.0% (2012: 5.0%) by 
2018. The following table shows the impact on other post-employment benefit obligations and total benefit expense of 
a one-percentage-point change in the assumed cost increase rates:
Sensitivity of Benefit Obligations
[Table 4.71]
Germany
Other countries
Total
 
Increase
Decrease
Increase
Decrease
Increase
Decrease
 
€ million
€ million
€ million
€ million
€ million
€ million
Pension obligations
 
 
 
 
 
 
0.5%-pt. change in discount rate 
(1,053)
1,191
(330)
369
(1,383)
1,560
0.5%-pt. change in projected future  
salary increases 
 
89
 
(82)
 
47
 
(44)
 
136
 
(126)
0.5%-pt. change in projected future  
benefit increases
 
726
 
(667)
 
84
 
(70)
 
810
 
(737)
10% change in mortality
(416)
461
(116)
120
(532)
581
Other post-employment benefit obligations
 
 
 
 
 
 
0.5%-pt. change in discount rate 
–
–
(35)
39
(35)
39
10% change in mortality
–
–
(16)
18
(16)
18
Sensitivity to Health Care Cost Increases
[Table 4.72]
 
Increase  
of one  
percentage 
point
Decrease  
of one  
percentage 
point
 
€ million
€ million
Impact on other post-employment benefit obligations
60
(51)
Impact on benefit expense
4
(4)
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303
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
25. Provisions for pensions and other post-employment benefits
Payments made and expected future payments
The following payments correspond to the employer contributions made or expected to be made to funded  
benefit plans: 
Bayer has currently committed to make annual deficit contributions through 2016 amounting to GBP21 million for  
its U.K. pension plans and will likely have to make annual payments of US$50 million for its U.S. pension plans over the 
same period.
Pensions and other post-employment benefits payable in the future from funded and unfunded plans are estimated  
as follows:
The weighted average term of the pension obligations is 15.0 years in Germany and 12.8 years in other countries.  
The weighted average term of the obligations for other post-employment benefits in other countries is 11.2 years.
Employer Contributions Paid or Expected
[Table 4.73]
Germany
Other countries
 
2012 
2013 
2014 
expected
2012 
2013 
2014 
expected
 
€ million 
€ million 
€ million 
€ million 
€ million 
€ million 
Pension obligations
1,186
86
143
131
117
93
Other post-employment benefit obligations
–
–
–
–
3
7
Total
1,186
86
143
131
120
100
Future Benefit Payments
[Table 4.74]
Out of plan assets
By the company
 
 
 
 
Pensions
Other post-
employment 
benefits
 
 
Pensions
Other post-
employment 
benefits
 
Germany 
Other  
countries
Other  
countries
Total
Germany 
Other  
countries
Other  
countries
Total
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
2014
210
241
10
461
438
52
38
528
2015
211
249
9
469
443
48
32
523
2016
214
260
10
484
451
53
34
538
2017
216
273
9
498
460
58
35
553
2018
220
286
10
516
466
60
37
563
2019 – 2023
1,168
1,521
52
2,741
2,424
329
206
2,959
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

304
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
26. Other provisions
26.	 Other provisions
Changes in the various provision categories in 2013 were as follows:
 
The provisions recognized in the statement of financial position as of December 31, 2013 were expected to be utilized 
as follows: 
The provisions were partly offset by claims for refunds in the amount of €318 million (2012: €594 million), which were 
recognized as receivables. These claims related principally to product liability and environmental protection measures. 
26.1 Taxes
Provisions for taxes comprised provisions for income taxes amounting to €1,079 million (2012: €725 million) and 
­provisions for other types of taxes amounting to €69 million (2012: €136 million).
 
Further income tax commitments according to IAS 12 (Income Taxes) existed at year end in the amount of  
€101 million (2012: €72 million), recognized in the statement of financial position as income tax liabilities.
Changes in Other Provisions
[Table 4.75]
 
Taxes 
 
 
Environ- 
mental 
protec- 
tion
Restruc- 
turing 
 
Trade- 
related 
commit- 
ments
Litigations 
 
 
Personnel  
commit- 
ments 
Miscella-
neous 
  
Total 
 
 
 
€ million 
€ million 
€ million 
€ million 
€ million 
€ million 
€ million 
€ million 
December 31, 2012
861
283
307
1,314
1,664
2,255
271
6,955
Changes in scope 
of consolidation
 
1
 
(2)
 
–
 
1
 
–
 
8
 
11
 
19
Additions
1,505
37
146
3,400
346
1,968
302
7,704
Utilization
(1,026)
(33)
(189)
(2,698)
(981)
(1,675)
(248)
(6,850)
Reversal
(137)
(24)
(15)
(387)
(54)
(164)
(45)
(826)
Interest cost
–
–
–
–
–
(4)
3
(1)
Exchange differences
(56)
(11)
(7)
(100)
(41)
(63)
(19)
(297)
December 31, 2013
1,148
250
242
1,530
934
2,325
275
6,704
2012 figures restated
Expected Utilization of Other Provisions
[Table 4.76]
 
Taxes 
 
 
Environ- 
mental  
protection 
Restruc- 
turing 
 
Trade- 
related  
commit- 
ments
Litigations 
 
 
Personnel 
commit- 
ments 
Miscella- 
neous  
 
Total 
 
 
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
2014
641
50
176
1,429
722
1,510
199
4,727
2015
4
23
23
81
112
205
17
465
2016
–
20
16
14
40
157
2
249
2017
301
5
11
3
–
112
2
434
2018
2
5
4
2
3
66
–
82
2019 or later
200
147
12
1
57
275
55
747
Total
1,148
250
242
1,530
934
2,325
275
6,704
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

305
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
26. Other provisions
26.2 Environmental protection
Provisions for environmental protection mainly related to the rehabilitation of contaminated land, recultivation of land-
fills, and redevelopment and water protection measures.
26.3 Restructuring
Provisions for restructuring included €189 million (2012: €237 million) for severance payments and €53 million 
(2012: €70 million) for other restructuring expenses, which mainly comprised other costs related to the closure of 
­production facilities. 
A restructuring program was launched in the HealthCare subgroup in November 2010 to improve its efficiency for the 
long term. The measures, which related to all functional areas, were designed to produce sustained cost savings and 
ensure a shift in the subgroup’s activities from the mature markets toward the emerging markets. Significant individual 
restructuring measures have taken place in Germany, Japan, France and the United States. The focus in 2013 was on 
the reorganization of the Medical Care and Dermatology businesses. Provisions were also established for the integra-
tion of acquired businesses. Provisions for the above and other restructuring measures at HealthCare as of December 
31, 2013, amounted to €115 million, comprising €106 million for severance payments and €9 million for other restruc-
turing expenses. 
A restructuring program launched in the CropScience subgroup in 2011 to improve cost efficiency and increase flexi-
bility was completed at the end of 2013. Significant individual measures took place in the United States, Germany and 
France. The restructuring initiated in the United States in 2011, involving the closure of several carbamate production 
facilities and a formulation plant, continued in 2013, utilizing the provisions established for this purpose. Provisions for 
the above and other restructuring measures at CropScience as of December 31, 2013, amounted to €94 million, com-
prising €53 million for severance payments and €41 million for other restructuring expenses. 
Provisions for restructuring measures in the MaterialScience subgroup pertained largely to the optimization of certain 
sites in the United States to improve cost efficiency and to the realignment of the systems house business in Europe, 
­including the related consolidation of production facilities. Provisions for restructuring at MaterialScience as of Decem-
ber 31, 2013, amounted to €9 million, comprising €8 million for severance payments and €1 million for other restruc-
turing expenses.
In addition, restructuring measures focusing on the introduction of country platforms, along with further efficiency im-
provements, were carried out throughout the Group so as to more effectively pool central functions. The restructuring 
provisions associated with these measures as of December 31, 2013, amounted to €24 million, comprising €22 million 
for severance payments and €2 million for other restructuring expenses.
26.4 Trade-related commitments
Provisions for trade-related commitments comprised provisions for rebates, discounts and other price adjustments, 
product returns, outstanding invoices, pending losses and onerous contracts.
26.5 Litigations
The legal risks currently considered to be material, and their development, are described in Note [32].
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

306
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
26. Other provisions
26.6 Personnel commitments
Provisions for personnel commitments mainly include those for variable and individual one-time payments, credit 
­balances on long-term accounts, service awards, early retirements, pre-retirement part-time working arrangements 
and other personnel costs. Also reflected here are the obligations under the stock-based compensation programs. 
­Provisions for severance payments resulting from restructuring are reflected in provisions for restructuring.
Stock-based compensation programs
The Bayer Group offers stock-based compensation programs collectively to different groups of employees. As required 
by IFRS 2 (Share-based Payment) for compensation systems involving cash settlement, awards to be made under the 
stock-based programs are covered by provisions in the amount of the fair value of the obligations existing as of the date 
of the financial statements vis-à-vis the respective employee group. All resulting valuation adjustments are recognized 
in profit or loss.
The following table shows the changes in provisions for the various programs:
The value of the Aspire tranches that were fully earned at the end of 2013, resulting in payments at the beginning of 
2014, was €136 million (2012: €46 million). 
Total expense for all stock-based compensation programs in 2013 was €275 million (2012: €177 million), including 
€4 million (2012: €4 million) for the BayShare stock participation program and €12 million (2012: €10 million) for 
grants of virtual Bayer shares forming a component of long-term compensation.
The fair value of obligations under the standard stock-based compensation programs was calculated using the ­Monte 
Carlo simulation method based on the following key parameters:
Changes in Provisions for Stock-Based Compensation Programs
[Table 4.77]
 
Stock  
Incentive 
Program
Stock  
Participation 
Program
Aspire I 
Three-Year 
Program
Aspire II 
Three-Year  
Program
Aspire I 
Four-Year  
Program
Aspire II 
Four-Year 
Program
Total 
 
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
December 31, 2012
0
6
20
26
54
82
188
Additions
–
2
–
–
92
165
259
Utilization 
–
(3)
(18)
(25)
–
–
(46)
Reversal
–
–
(2)
(1)
(10)
(9)
(22)
Exchange differences
–
–
–
–
(2)
(8)
(10)
December 31, 2013
0
5
0
0
134
230
369
Parameters for Monte Carlo Simulation
 [Table 4.78]
 
2012
2013
Dividend yield
2.66%
2.14%
Risk-free interest rate for the four-year program 
0.155%
0.644%
Volatility of Bayer stock
27.40%
27.06%
Volatility of the EURO STOXX 50
24.54%
22.54%
Correlation between Bayer stock price and the EURO STOXX 50
0.75
0.77
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

307
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
26. Other provisions
Long-term incentive program for members of the board of management and other 
senior executives (Aspire I)
Since 2005, members of the Board of Management and other senior executives have been entitled to participate in 
­Aspire I on the condition that they purchase a certain number of Bayer shares – determined for each individual accord-
ing to specific guidelines – and retain them for the full term of the program. A percentage of the executive’s annual 
base salary – based on his / her position – is defined as a target for variable payments (Aspire target opportunity). De-
pending on the performance of Bayer stock, both in absolute terms and relative to the EURO STOXX 50 benchmark index 
during a three-year performance period (or, starting with the regular 2010 tranche, a four-year performance period), 
participants are granted an award of up to 300% of their individual Aspire target opportunity for four-year tranches, or 
200% for three-year tranches, at the end of the program. In 2010 a final tranche with a three-year performance period 
was issued in addition. This tranche expired at the end of 2012, and payment of the maximum resulting amount 
(200%) was made at the beginning of 2013.
Long-term incentive program for middle management (Aspire II)
Also since 2005, other senior managers and middle managers have been offered Aspire II, a variant of Aspire I that 
does not require a personal investment in Bayer shares and that was extended to further managerial employees in 
2012. In this case, the amount of the award is based entirely on the absolute performance of Bayer stock. The maxi-
mum award is 250% of each manager’s Aspire target opportunity for four-year tranches, or 150% for three-year 
tranches. The final three-year tranche expired at the end of 2012, and payment of the maximum resulting amount 
(150%) was made at the beginning of 2013.
Bayshare 2013
All management levels and non-managerial employees are offered an annual stock participation program known as 
BayShare, under which Bayer subsidizes their personal investments in the company’s stock. The discount under this 
program is set separately each year. In 2013 it was 20% (2012: 20%) of the subscription amount. Employees stated a 
fixed amount that they wished to invest in shares. The maximum subscription amount in Germany was set at €2,500 
(2012: €2,500) or €5,000 (2012: €5,000), depending on the employee’s position. The shares thus acquired must be 
­retained until December 31 of the year following the year of purchase, irrespective of continued employment with the 
Bayer Group. 
In 2013, employees purchased a total of about 242,600 shares (2012: 304,500 shares) under the BayShare program. 
Stock-based compensation programs 2003–2004
The stock-based compensation programs offered to the different employee groups in 2003 and 2004 had similar basic 
structures. Changes in the obligations under these programs are reflected in the financial statements at fair value 
through profit or loss. Entitlements to awards under these programs are conditioned on retention of the Bayer shares 
for a certain time period. The tranches issued in 2003 expired in 2013.
The following table shows the conditions of the programs issued through 2004 and still ongoing, for which provisions 
of €5 million were established as of December 31, 2013:
Stock-Based Compensation Programs 2004
[Table 4.79]
 
Stock  
Incentive  
Program
Stock  
Participation 
Program
Year of issue
2004
2004
Original term in years
10
10
Retention period / distribution date in years from issue date
2 / 6 / 10
2 / 6 / 10
Performance criteria
yes
no
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

308
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
27. Financial liabilities
Stock incentive program 
A Stock Incentive Program was offered to middle management until 2004. Participants receive a cash payment equiva-
lent to a defined number of Bayer shares on certain dates during the ten-year duration of the program. For every ten 
shares held in a special account (personal investment), they receive two shares after two years, and a further four 
shares after six and ten years, respectively. To qualify for these payments, they must still hold the personal investment 
on the incentive payment dates and the percentage rise in the price of Bayer stock by the payment date must be above 
the performance of the EURO STOXX 50 since the start of the program. Participants may sell their shares during the term 
of the program. However, the shares sold do not qualify for incentive payments on subsequent distribution dates. The 
number of shares that each employee could transfer to the program was equivalent to half of his or her performance-­
related bonus for the preceding fiscal year. 
Stock participation program 
The structure of this program, which was offered to the other employee groups until 2004, is similar to the Stock 
­Incentive Program. However, the incentive payments are based exclusively on the period for which employees hold 
their personal investment in Bayer shares. Incentive payments are half those allocated under the Stock Incentive 
­Program. For every ten shares held, participants receive the equivalent of one share after two years and the equivalent 
of a further two shares after six and ten years, respectively.
26.7 Miscellaneous 
Miscellaneous provisions included those for other liabilities, contingent liabilities from business combinations, asset 
­retirement obligations (other than those included in provisions for environmental protection) and guarantees.
27.	 Financial liabilities
Financial liabilities were comprised as follows:
Financial Liabilities
[Table 4.80]
Dec. 31, 2012
Dec. 31, 2013
 
 
Total
Of which  
current
 
Total
Of which  
current
 
€ million
€ million
€ million
€ million
Bonds and notes / promissory notes
 5,528
 1,094
 4,520
 1,560
Liabilities to banks
 2,841
 876
 2,302
 549
Liabilities under finance leases 
 542
 235
 382
 51
Liabilities from derivatives
 309
 109
 311
 117
Other financial liabilities 
 310
 254
 1,516
 1,164
Total
 9,530
 2,568
 9,031
 3,441
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

309
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
27. Financial liabilities
A breakdown of financial liabilities by contractual maturity is given below:
The Bayer Group’s financial liabilities are mostly unsecured and – with the exception of the subordinated  
€1,300 million hybrid bond – are of equal priority.
In addition to promissory notes in the amount of €370 million (2012: €370 million), the Bayer Group has issued the  
following bonds and notes:
 
Multi-currency European Medium Term Notes program
An important means of external financing are the bonds issued under the multi-currency European Medium Term  
Notes (EMTN) program. The following transactions took place in 2013 and 2012:
Maturities of Financial Liabilities
[Table 4.81]
Maturity
Dec. 31, 2012
Maturity
Dec. 31, 2013
 
€ million
 
€ million
2013
2,568
2014
3,441
2014
1,897
2015
1,208
2015
910
2016
713
2016
436
2017
491
2017
581
2018
1,165
2018 or later
3,138
2019 or later
2,013
Total
9,530
Total
9,031
2012 figures restated
Bonds and Notes
[Table 4.82]
Effective  
interest rate
Stated rate
 
Nominal volume
Dec. 31, 2012
Dec. 31, 2013
 
 
 
 
€ million
€ million
 
 
Bayer AG
 
 
 
5.155%
5.000%
Hybrid bond 2005 / 2105 (2015)
EUR 1,300 million
1,364
1,344
4.621%
4.500%
EMTN bond 2006 / 2013
EUR 1,000 million
1,006
–
5.774%
5.625%
EMTN bond 2006 / 2018
GBP 250 million
304
298
5.541%
5.625%
EMTN bond 2006 / 2018 (increase)
GBP 100 million
123
120
 
 
Bayer Capital Corporation B.V.
 
 
 
4.750%
4.625%
EMTN bond 2009 / 2014
EUR 1,300 million
1,314
1,310
 
 
Bayer Corporation
 
 
 
7.180%
7.125%
Notes 1995 / 2015
US$ 200 million
159
145
6.670%
6.650%
Notes 1998 / 2028
US$ 350 million
316
284
 
 
Bayer Holding Ltd.
 
 
 
Floating
Floating
EMTN bond 2008 / 2013
JPY 10 billion
88
–
3.654%
3.575%
EMTN bond 2008 / 2018
JPY 15 billion
132
104
1.493%
1.459%
EMTN bond 2010 / 2017
JPY 10 billion
88
69
0.858%
0.816%
EMTN bond 2012 / 2017
JPY 30 billion
264
207
0.629%
0.594%
EMTN bond 2013 / 2019
JPY 10 billion
–
69
 
 
Bayer Nordic SE
 
 
 
Floating *
Floating *
EMTN bond 2013 / 2016
EUR 200 million
–
200
 
 
Total
 
5,158
4,150
*	floating-rate coupon comprising three-month EURIBOR plus 35 basis points
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

310
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
27. Financial liabilities
In April 2013, Bayer Nordic SE issued an EMTN bond with a nominal volume of €200 million. In May 2013, Bayer AG 
­redeemed at maturity the EMTN bond with a nominal volume of €1,000 million issued in May 2006. In May 2013, Bayer 
Holding Ltd. issued an EMTN bond with a nominal volume of JPY 10 billion. In July 2013, Bayer Holding Ltd. redeemed 
at maturity the EMTN bond with a nominal volume of JPY 10 billion issued in June 2008.
In April 2012, the EMTN bond with a nominal volume of €2,000 million issued by Bayer AG in April 2002 was redeemed 
at maturity. In June 2012, the EMTN bonds with nominal volumes of JPY 15 billion and JPY 30 billion issued by Bayer 
Holding Ltd. in June 2007 were redeemed at maturity, and an EMTN bond with a nominal volume of JPY 30 billion was 
issued in April 2012.
Subordinated bonds
In July 2005, Bayer AG issued a 100-year subordinated hybrid bond with a nominal volume of €1,300 million. This issue 
matures in 2105 and has a fixed coupon of 5.0% in the first 10 years. Thereafter, interest is calculated quarterly at a 
floating rate (three-month EURIBOR plus 280 basis points). After the first 10 years, Bayer AG has a quarterly option to 
redeem the bond at face value. The coupon is payable in arrears. This bond is treated as 75% equity by Moody’s and as 
50% equity by Standard & Poor’s and therefore improves the Bayer Group’s rating-specific debt indicators.
Bayer AG guarantees all the bonds issued by subsidiaries.
Leasing liabilities
Lease payments totaling €538 million (2012: €681 million), including €156 million (2012: €139 million) in interest, are 
to be made under finance leases to the respective lessors in future years.
The liabilities under finance leases mature as follows:
Other financial liabilities
The other financial liabilities as of December 31, 2013, included commercial paper of €943 million (2012: €150 million).
Other information
As of December 31, 2013, the Group had credit facilities at its disposal totaling €5.8 billion (2012: €6.3 billion), of which 
€2.3 billion (2012: €2.8 billion) was used and €3.5 billion (2012: €3.5 billion) was unused and thus available for borrow-
ing on an unsecured basis.
Further information on the accounting for liabilities from derivatives is given in Note [30].
Leasing Liabilities
[Table 4.83]
Dec. 31, 2012
Dec. 31, 2013
Maturity
 
 
Lease  
payments
 
 
Interest 
component
Liabilities 
under 
finance  
leases
Maturity
 
 
Lease  
payments
 
 
Interest 
component
Liabilities 
under 
finance  
leases
 
€ million
€ million
€ million
 
€ million
€ million
€ million
2013
258
23
235
2014
71
20
51
2014
57
16
41
2015
63
19
44
2015
49
15
34
2016
54
18
36
2016
46
14
32
2017
44
16
28
2017
34
11
23
2018
41
14
27
2018 or later
237
60
177
2019 or later
265
69
196
Total
681
139
542
Total
538
156
382
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

311
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
28. Trade accounts payable
28.	 Trade accounts payable
Trade accounts payable comprised €4,467 million (2012: €4,277 million) due within one year and €6 million (2012: 
€28 million) due after one year. 
29.	 Other liabilities
Other liabilities comprised:
Liabilities to non-controlling interest pertained to a pro-rated claim on the total assets of Currenta GmbH & Co. OHG 
which could arise if the other stockholder exercises a statutory right of termination.
The deferred income included €61 million (2012: €65 million) in grants and subsidies received from governments,  
of which €9 million (2012: €14 million) was reversed and recognized in profit or loss. 
The miscellaneous liabilities included €73 million (2012: €54 million) from derivative hedging transactions.
30.	 Financial instruments
The system used by the Bayer Group to manage credit risks, liquidity risks and the various types of market risks 
­(interest-rate, currency and other price risks), together with its objectives, methods and procedures, is outlined in the 
Risk Report, which forms part of the Combined Management Report.
30.1	Financial instruments by category
The following table shows the carrying amounts and fair values of financial assets and liabilities by category of finan-
cial instrument and a reconciliation to the corresponding line item in the statements of financial position. Since the 
line items “Other receivables,” “Trade accounts payable” and “Other liabilities” contain both financial instruments 
and non-financial assets or liabilities (such as other tax receivables or advance payments for services to be received in 
the future), the reconciliation is shown in the column headed “Non-financial assets / liabilities.”
Other Liabilities
[Table 4.84]
Dec. 31, 2012
Dec. 31, 2013
 
 
Total
Of which  
current
 
Total
Of which  
current
 
€ million
€ million
€ million
€ million
Accrued interest on liabilities
142
131
105
99
Liabilities to employees
176
146
183
168
Liabilities for social expenses 
168
152
150
137
Other tax liabilities
395
353
409
378
Liabilities to non-controlling interest
–
–
49
–
Deferred income
346
130
319
122
Miscellaneous liabilities
497
403
428
377
Total
1,724
1,315
1,643
1,281
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

312
313
Consolidated Financial Statements
Consolidated Financial Statements
Bayer Annual Report 2013
Bayer Annual Report 2013
Notes
30. Financial instruments
Notes
30. Financial instruments
Carrying Amounts and Fair Values of Financial Instruments
[Table 4.85]
Dec. 31, 2012
Dec.31, 2013
 
 
Carried at 
amortized cost
 
 
 
Carried at fair value
Non- 
financial  
assets /  
liabilities
Carrying 
amount in 
the state-
ment of 
financial 
position
 
 
Carried at 
amortized cost
 
 
 
Carried at fair value
Non- 
financial  
assets / 
liabilities
Carrying 
amount in 
the state-
ment of 
financial 
position
Carrying 
amount  
Dec. 31, 2012
Fair value 
(for infor­
mation)
Based on 
quoted  
prices in 
active  
markets  
(Level 1)
 
 
Based on 
market  
derived data  
(Level 2)
 
Based on 
individual 
unobserv-
able inputs  
(Level 3)
Carrying 
amount  
Dec. 31, 2013
Fair value 
(for infor­
mation)
Based on 
quoted  
prices in 
active  
markets  
(Level 1)
 
 
Based on 
market 
derived data  
(Level 2)
 
Based on 
individual 
unobserv-
able inputs  
(Level 3)
 
Carrying 
amount
Carrying 
amount
Carrying 
amount
Carrying 
amount
Carrying 
amount
Carrying 
amount
Carrying 
amount
Carrying 
amount
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Trade accounts receivable
7,433
 
 
 
 
 
7,433
 
7,569
 
 
 
 
 
7,569
Loans and receivables
7,433
7,431
 
 
 
 
7,433
 
7,569
7,569
 
 
 
 
7,569
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other financial assets
1,010
 
503
623
29
 
2,165
 
941
 
276
737
28
 
1,982
Loans and receivables
876
876
 
 
 
 
876
 
823
823
 
 
 
 
823
Available-for-sale financial assets
32
 
307
5
 
 
344
 
22
 
276
 
 
 
298
Held-to-maturity financial assets
102
105
 
 
 
 
102
 
96
97
 
 
 
 
96
Non-derivative held-for-trading financial assets
 
 
196
 
 
 
196
 
 
 
 
 
 
 
 
Derivatives that qualify for hedge accounting
 
 
 
346
 
 
346
 
 
 
 
335
 
 
335
Derivatives that do not qualify for hedge accounting
 
 
 
272
29
 
301
 
 
 
 
402
28
 
430
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other receivables
634
 
 
 
 
1,562
2,196
 
526
 
 
 
 
1,446
1,972
Loans and receivables
634
635
 
 
 
 
634
 
526
526
 
 
 
 
526
Non-financial assets
 
 
 
 
 
1,562
1,562
 
 
 
 
 
 
1,446
1,446
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
1,698
 
 
 
 
 
1,698
 
1,662
 
 
 
 
 
1,662
Loans and receivables
1,698
1,698
 
 
 
 
1,698
 
1,662
1,662
 
 
 
 
1,662
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financial assets
10,775
 
503
623
29
 
11,930
 
10,698
 
276
737
28
 
11,739
of which loans and receivables
10,641
 
 
 
 
 
10,641
 
10,580
  
 
 
 
 
10,580
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
9,221
 
 
309
 
 
9,530
 
8,720
 
 
311
 
 
9,031
Carried at amortized cost
9,221
9,668
 
 
 
 
9,221
 
8,720
8,967
 
 
 
 
8,720
Derivatives that qualify for hedge accounting
 
 
 
159
 
 
159
 
 
 
 
200
 
 
200
Derivatives that do not qualify  
for hedge accounting
 
 
 
 
150
 
 
 
 
 
150
 
 
 
 
 
 
 
 
 
111
 
 
 
 
 
111
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
Trade accounts payable
3,938
 
 
 
 
367
4,305
 
4,276
 
 
 
 
197
4,473
Carried at amortized cost
3,938
3,938
 
 
 
 
3,938
 
4,276
4,276
 
 
 
 
4,276
Non-financial liabilities
 
 
 
 
 
367
367
 
 
 
 
 
 
197
197
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
699
 
 
47
7
971
1,724
 
620
 
 
38
35
950
1,643
Carried at amortized cost
699
700
 
 
 
 
699
 
620
620
 
 
 
 
620
Derivatives that qualify for hedge accounting
 
 
 
20
 
 
20
 
 
 
 
15
 
 
15
Derivatives that do not qualify  
for hedge accounting
 
 
 
 
27
 
7
 
 
34
 
 
 
 
 
 
 
23
 
35
 
 
58
Non-financial liabilities
 
 
 
 
 
971
971
 
 
 
 
 
 
950
950
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financial liabilities
13,858
 
 
356
7
 
14,221
 
13,616
 
 
349
35
 
14,000
of which carried at amortized cost
13,858
 
 
 
 
 
13,858
 
13,616
 
 
 
 
 
13,616
of which derivatives that qualify  
for hedge accounting
 
 
 
 
179
 
 
 
 
 
179
 
 
 
 
 
 
 
 
 
215
 
 
 
 
215
of which derivatives that do not qualify  
for hedge accounting
 
 
 
 
177
 
7
 
 
 
184
  
 
 
 
 
 
 
 
134
 
35
 
 
 
169
2012 figures restated
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS  
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

314
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
30. Financial instruments 
The loans and receivables reflected in other financial assets and the liabilities measured at amortized cost also include 
receivables and liabilities under finance leases in which Bayer is the lessor or lessee and which are therefore measured 
in accordance with IAS 17. 
Because of the short maturities of most trade accounts receivable and payable, other receivables and liabilities, and 
cash and cash equivalents, their carrying amounts at the closing date did not significantly differ from the fair values.
The fair value stated for noncurrent receivables, loans, held-to-maturity financial investments and non-derivative finan-
cial liabilities is the present value of the respective future cash flows. This was determined by discounting the cash 
flows at a closing-date interest rate that takes into account the term of the assets or liabilities and the creditworthiness 
of the counterparty. Where a market price was available, however, this was deemed to be the fair value. 
The fair values of available-for-sale financial assets correspond to quoted prices in active markets for identical assets 
(Level 1).
The fair values of derivatives for which no quoted market prices existed were determined using valuation techniques 
based on observable market-derived data as of the end of the reporting period (Level 2). In applying valuation tech-
niques, credit value adjustments were determined to allow for the contracting party’s credit risk.
The respective currency and commodity forward contracts were measured individually at their forward rates or forward 
prices on the closing date. These depend on spot rates or prices including time spreads. The fair values of interest-rate 
hedging instruments and cross-currency interest-rate swaps were determined by discounting future cash flows over the 
remaining terms of the instruments at market rates of interest, taking into account any foreign currency translation as 
of the closing date.
Income, expense, gains and losses on financial instruments can be assigned to the following categories:
Income, Expense, Gains and Losses on Financial Instruments
[Table 4.86]
2013
 
 
 
Loans and 
receivables
Held-to-
maturity 
financial 
investments
Available-
for-sale 
financial 
assets
 
 
Held for  
trading
Liabilities 
carried at 
amortized 
cost
 
 
 
Total
 
€ million
€ million
€ million
€ million
€ million
€ million
Interest income
77
1
2
44
151
275
Interest expense
–
–
–
(54)
(559)
(613)
Income / expenses from affiliated companies
–
–
–
–
–
–
Changes in fair value
–
–
–
(10)
–
(10)
Impairment losses
(82)
–
(2)
–
–
(84)
Impairment loss reversals
42
–
–
–
–
42
Exchange gains/losses
(506)
–
–
372
(21)
(155)
Gains / losses from retirements
–
–
77
–
–
77
Other financial income/expenses
(1)
–
(3)
–
6
2
Net result
(470)
1
74
352
(423)
(466)
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

315
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
30. Financial instruments 
The interest expense of €559 million (2012: €558 million) from non-derivative financial liabilities also included the 
­income and expense from interest-rate swaps that qualified for hedge accounting. Interest income from financial assets 
not measured at fair value through profit or loss amounted to €80 million (2012: €151 million). Interest income from 
­interest-rate derivatives that qualified for hedge accounting was €151 million (2012: €129 million). The changes in fair 
values of financial assets held for trading related mainly to forward commodity contracts and embedded derivatives. 
Embedded derivatives were separated from their respective host contracts. Such host contracts are generally sales or 
purchase agreements relating to the operational business. The embedded derivatives cause the cash flows from the 
contracts to vary with fluctuations in exchange rates, commodity prices or other prices, for example. The internal mea-
surement of embedded derivatives is mainly performed using the discounted cash flow method, which is based on 
­individual unobservable inputs (Level 3). These included planned sales and purchase volumes, and prices derived from 
market data. Regular monitoring is carried out based on these fair values as part of quarterly reporting. 
The changes in the net amount of financial assets and liabilities recognized at fair value based on individual 
­unobservable inputs were as follows:
No gains or losses from divestments were recorded in 2013. The changes recognized in profit or loss were included in 
other operating income or expenses.
Income, Expense, Gains and Losses on Financial Instruments (Previous Year)
[Table 4.87]
2012
 
 
 
Loans and  
receivables
Held-to-
maturity 
financial 
investments
Available-
for-sale 
financial 
assets
 
 
Held for  
trading
Liabilities 
measured at 
amortized 
cost
 
 
 
Total
 
€ million
€ million
€ million
€ million
€ million
€ million
Interest income
145
2
4
174
156
481
Interest expense
–
–
–
(156)
(558)
(714)
Income / expenses from affiliated companies
–
–
–
–
–
–
Changes in fair value
–
–
–
21
–
21
Impairment losses
(96)
–
(6)
–
–
(102)
Impairment loss reversals
28
–
2
–
–
30
Exchange gains/losses
(129)
–
(1)
104
6
(20)
Gains / losses from retirements
–
–
1
–
–
1
Other financial income/expenses
(4)
–
–
–
(30)
(34)
Net result
(56)
2
–
143
(426)
(337)
2012 figures restated
Changes in the Net Amount of Financial Assets and Liabilities Recognized at Fair Value  
Based on Individual Unobservable Inputs
 
[Table 4.88]
 
2012
2013
 
€ million 
€ million 
Net carrying amounts, January 1
30
22
Gains (losses) recognized in profit or loss
(16)
(29)
of which related to assets / liabilities recognized in the statements of financial position 
(16)
(29)
Gains (losses) recognized outside profit or loss
–
–
Additions
8
–
Retirements
–
–
Reclassifications
–
–
Net carrying amounts, December 31
22
(7)
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

316
317
Consolidated Financial Statements
Consolidated Financial Statements
Bayer Annual Report 2013
Bayer Annual Report 2013
Notes
30. Financial instruments
Notes
30. Financial instruments
Derivatives that constitute financial assets and form part of a master netting arrangement but do not satisfy, or only 
partially satisfy, the offsetting criteria and are only enforceable in the event of breach of contract by, or insolvency 
of, one of the contracting parties amounted to €685 million (2012: €568 million); the related financial liabilities (deriv-
atives) were €140 million (2012: €171 million). Derivatives with the same characteristics that constitute financial 
­liabilities amounted to €299 million (2012: €313 million); the related financial assets (derivatives) were €140 million 
(2012: €171 million).
30.2	 Maturity analysis
The liquidity risks to which the Bayer Group was exposed from its financial instruments at the end of the reporting 
­period comprised obligations for future interest and repayment installments on financial liabilities and the liquidity risk 
arising from derivatives, as shown in the table in Note [30.3].
There was also a liquidity risk from an as yet unpaid €1,005 million (2012: €1,005 million) portion of the effective initial 
fund of Bayer-Pensionskasse VVaG, which may result in further payments by Bayer AG in subsequent years. This 
amount was reported under loan commitments.
 
Dec. 31, 2012
Cash flows 2013
Cash flows 2014
Cash flows 2015
Cash flows 2016
Cash flows 2017
Cash flows after 2017
 
Carrying  
amount
Interest  
and repayment
Interest  
and repayment
Interest  
and repayment
Interest  
and repayment
Interest  
and repayment
Interest  
and repayment
 
€ million
€ million
€ million
 
€ million
€ million
€ million
€ million
Financial liabilities
 
 
 
 
 
 
 
 
Bonds and notes / promissory notes *
5,528
1,229
1,745
 
1,584
132
403
1,178
Liabilities to banks
2,841
957
247
 
713
310
201
718
Remaining liabilities
852
514
91
 
71
48
38
238
Trade accounts payable
3,938
3,911
13
 
3
13
–
–
Other liabilities
 
 
 
 
 
 
 
 
Accrued interest on liabilities
142
132
1
 
1
1
1
6
Remaining liabilities
557
519
8
 
6
2
4
26
Liabilities from derivatives
 
 
 
 
 
 
 
 
Derivatives that qualify for hedge accounting
179
23
55
 
–
9
3
90
Derivatives that do not qualify for hedge accounting
184
133
21
 
30
2
2
2
Receivables from derivatives
 
 
 
 
 
 
 
 
Derivatives that qualify for hedge accounting
346
181
88
 
52
8
4
18
Derivatives that do not qualify for hedge accounting
301
227
34
 
21
2
1
16
Loan commitments
–
1,005
–
 
–
–
–
–
Financial guarantees
–
26
–
 
–
–
–
–
* Repayment of the €1,300 million 100-year hybrid bond is reflected at the earliest possible repayment date in 2015. 
2012 figures restated
Maturity Analysis of Financial Instruments
[Table 4.89]
Dec. 31, 2013
Cash flows 2014
Cash flows 2015
Cash flows 2016
Cash flows 2017
Cash flows 2018
Cash flows after 2018
 
Carrying  
amount
Interest  
and repayment
Interest  
and repayment
Interest  
and repayment
Interest  
and repayment
Interest  
and repayment
Interest  
and repayment
 
€ million
€ million
€ million
 
€ million
€ million
€ million
€ million
Financial liabilities
 
 
 
 
 
 
 
 
Bonds and notes / promissory notes *
4,520
1,664
1,575
 
330
325
570
531
Liabilities to banks
2,302
629
722
 
386
207
522
70
Remaining liabilities
1,898
1,236
408
 
55
47
42
269
Trade accounts payable
4,276
4,273
4
 
2
–
 –
–
Other liabilities
 
 
 
 
 
 
 
 
Accrued interest on liabilities
105
99
1
 
1
1
1
3
Remaining liabilities
515
441
8
 
6
2
4
66
Liabilities from derivatives
 
 
 
 
 
 
 
 
Derivatives that qualify for hedge accounting
215
45
1
 
55
2
114
–
Derivatives that do not qualify for hedge accounting
169
140
26
 
1
1
1
2
Receivables from derivatives
 
 
 
 
   
  
 
 
Derivatives that qualify for hedge accounting
335
215
67
 
36
14
2
2
Derivatives that do not qualify for hedge accounting
430
359
32
 
25
–
2
16
Loan commitments
–
1,006
–
 
–
–
–
–
Financial guarantees
–
25
–
 
–
–
–
–
* Repayment of the €1,300 million 100-year hybrid bond is reflected at the earliest possible repayment date in 2015. 
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS  
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

318
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
30. Financial instruments
30.3	 Information on derivatives
Asset and liability fair values and future cash flows are exposed to currency, interest-rate and commodity price risks. 
Derivatives are used to reduce this risk. In some cases they are designated as hedging instruments in a hedge account-
ing relationship.
Currency risks
Foreign currency receivables and liabilities are hedged using foreign exchange derivatives without the existence of a 
hedge accounting relationship. A bond of Bayer AG denominated in British pounds was swapped on the issuance date 
into a fixed-rate euro bond by means of a cross-currency interest-rate swap, which was designated as a cash flow 
hedge. Certain forward exchange contracts and cross-currency interest-rate swaps used to hedge intra-Group loans 
are also designated as cash flow hedges. 
Fluctuations in future cash flows resulting from forecasted foreign currency transactions are avoided partly through 
­derivative contracts, most of which are designated as cash flow hedges.
Interest-rate risks
The interest-rate risks from fixed-interest borrowings are managed in part using interest-rate swaps. The principal 
­borrowings concerned are the US$200 million bond issued in 1995, the €1.3 billion bond issued in 2005, and the 
€1.3 billion bond issued in 2009. Hedge accounting is applied to the respective borrowings and hedging instruments 
(fair-value hedge).
Losses of €65 million (2012: gains of €30 million) were recorded on fair-value hedging instruments in 2013. Gains of 
€65 million (2012: losses of €27 million) were recorded on the underlying hedged items.
Commodity price risks
Hedging contracts are also used to partly reduce exposure to fluctuations in future cash flows resulting from price 
changes on procurement markets.
Further information on cash flow hedges
Accumulated other comprehensive income from cash flow hedges in 2013 increased by €157 million (2012: €28 mil-
lion) due to changes in the fair values of derivatives net of tax. Gains of €156 million (2012: losses of €148 million) from 
fair-value changes – originally recognized in accumulated other comprehensive income – of derivatives designated as 
cash flow hedges were reclassified to profit or loss. The respective pro-rated deferred tax expense of €46 million 
(2012: deferred tax income of €43 million) was likewise reclassified to profit or loss.
No material ineffective portions of hedges required recognition in profit or loss in 2013 or 2012.
The income and expense from cash flow hedges recognized in accumulated other comprehensive income mainly 
­comprised gains of €171 million (2012: €89 million) from the hedging of forecasted transactions in foreign currencies. 
Of these gains, €120 million (2012: €71 million) will be reclassifiable to profit or loss within one year and €51 million 
(2012: €18 million) in subsequent years.
The fair values of existing contracts in the major categories at the end of the reporting period are indicated in the 
­following table together with the included volumes of cash flow hedges.
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

319
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
31. Contingent liabilities and other financial commitments
31. Contingent liabilities and other financial commitments
Contingent liabilities
The following warranty contracts, guarantees and other contingent liabilities existed at the end of the reporting period: 
Contingent Liabilities 
[Table 4.91]
 
Dec. 31, 2012
Dec. 31, 2013
 
€ million
€ million
Warranties
107
107
Guarantees
237
140
Other contingent liabilities
260
467
Total
604
714
Fair Values of Derivatives
[Table 4.90]
Dec. 31, 2012
Dec. 31, 2013
Fair value
Fair value
 
Notional 
amount *
Positive  
fair value
Negative  
fair value
Notional 
amount *
Positive  
fair value
Negative  
fair value
 
€ million
€ million
€ million
€ million
€ million
€ million
Currency hedging of recorded transactions
10,477
180
(227)
14,535
348
(260)
Forward exchange contracts
8,705
180
(65)
10,519
286
(58)
of which cash flow hedges
330
14
–
–
–
–
Currency options
–
–
–
1,752
23
–
Cross-currency interest-rate swaps
1,772
–
(162)
2,264
39
(202)
of which cash flow hedges
1,461
–
(159)
2,132
38
(200)
 
 
 
 
 
 
 
Currency hedging of forecasted transactions
4,554
127
(24)
3,925
194
(19)
Forward exchange contracts
3,418
108
(19)
3,191
153
(17)
of which cash flow hedges
3,314
107
(18)
3,000
150
(15)
Currency options
1,136
19
(5)
734
41
(2)
of which cash flow hedges
355
13
(2)
407
40
–
 
 
 
 
 
 
 
Interest-rate hedging of recorded transactions
5,066
267
(67)
3,851
146
(47)
Interest-rate swaps
5,066
267
(67)
3,851
146
(47)
of which fair value hedges
3,960
212
–
2,745
107
–
 
 
 
 
 
 
 
Commodity price hedging
47
11
(5)
16
2
(1)
Forward commodity contracts
30
11
(5)
10
1
(1)
Commodity option contracts
17
–
–
6
1
–
 
 
 
 
 
 
 
Total 
20,144
585
(323)
22,327
690
(327)
of which current derivatives 
13,776
381
(118)
17,091
533
(106)
for currency hedging
12,713
275
(90)
15,785
446
(81)
for interest-rate hedging **
1,016
95
(23)
1,300
85
(24)
for commodity hedging
47
11
(5)
6
2
(1)
*	 The notional amount is reported as gross volume, which also contains economically closed hedges. 
**	The fair value of long-term interest-rate swaps resulting from current interest payments was classified as current.
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

320
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
31. Contingent liabilities and other financial commitments
The guarantees mainly comprise a declaration issued by Bayer AG to the trustees of the U.K. pension plans guarantee-
ing the pension obligations of Bayer Public Limited Company and Bayer CropScience Limited. Under the declaration, 
Bayer AG – in addition to the two companies – undertakes to make further payments into the plans upon receipt of a 
payment request from the trustees. The net liability with respect to these defined benefit plans as of December 31, 
2013, amounted to €100 million (2012: €171 million). 
Other contingent liabilities in 2013 included an amount of €172 million for potential payment claims related to the par-
tial ­exemption from the surcharge levied under the German Renewable Energy Act.
Other financial commitments
The other financial commitments were as follows:
 
The non-discounted future minimum lease payments relating to operating leases totaled €596 million (2012: €604 mil-
lion). The maturities of the respective payment obligations were as follows:
Financial commitments resulting from orders already placed under purchase agreements related to planned or ongoing 
capital expenditure projects totaled €365 million (2012: €632 million). 
The unpaid capital provided to Bayer-Pensionskasse VVaG for its effective initial fund amounted to €1,005 million 
(2012: €1,005 million).
The Bayer Group has entered into cooperation agreements with third parties under which it has agreed to fund various 
research and development projects or has assumed other payment obligations based on the achievement of certain 
milestones or other specific conditions. If all of these payments have to be made, their maturity distribution as of 
­December 31, 2013 was expected to be as set forth in the following table. The amounts shown represent the maximum 
payments to be made, and it is unlikely that they will all fall due. Since the achievement of the conditions for payment is 
highly uncertain, both the amounts and the dates of the actual payments may vary considerably from those stated in 
the table.
Other Financial Commitments
[Table 4.92]
 
Dec. 31, 2012
Dec. 31, 2013
 
€ million
€ million
Operating leases 
604
596
Orders already placed under purchase agreements 
632
365
Unpaid portion of the effective initial fund 
1,005
1,005
Potential payment obligations under R & D collaboration agreements 
1,798
2,106
Revenue-based milestone payment commitments 
2,005
2,191
Total
6,044
6,263
Operating Leases
[Table 4.93]
Maturing in
Dec. 31, 2012
Maturing in
Dec. 31, 2013
 
€ million
 
€ million
2013
194
2014
174
2014
133
2015
144
2015
98
2016
81
2016
61
2017
66
2017
45
2018
42
2018 or later
73
2019 or later
89
Total
604
Total
596
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

321
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
32. Legal risks
In addition to the above commitments, there were also revenue-based milestone payment commitments totaling 
€2,191 million (2012: €2,005 million), of which €2,090 million (2012: €1,886 million) were not expected to fall due until 
2019 (2012: 2018) or later. These commitments are also highly uncertain.
Should the achievement of the milestones or specific conditions become sufficiently probable, a provision or other lia-
bility is recognized in the statement of financial position, and this may also lead to the recognition of an intangible asset 
in the same amount. The above table includes neither current revenue-based royalty payments nor future payments 
that are probable and therefore already reflected in the statement of financial position.
32. Legal risks
As a global company with a diverse business portfolio, the Bayer Group is exposed to numerous legal risks, particularly 
in the areas of product liability, competition and antitrust law, patent disputes, tax assessments and environmental mat-
ters. The outcome of any current or future proceedings cannot be predicted. It is therefore possible that legal or regula-
tory judgments or future settlements could give rise to expenses that are not covered, or not fully covered, by insurers’ 
compensation payments and could significantly affect our revenues and earnings.
Legal proceedings currently considered to involve material risks are outlined below. The legal proceedings referred to 
do not represent an exhaustive list.
HealthCare:
Product-related litigation
Yasmin™ / YAZ™: As of February 10, 2014, the number of claimants in the pending lawsuits and claims in the United 
States totaled about 4,600 (excluding claims already settled). Claimants allege that they have suffered personal injuries, 
some of them fatal, from the use of Bayer’s drospirenone-containing oral contraceptive products such as Yasmin™ 
and / or YAZ™ or from the use of Ocella™ and / or Gianvi™, generic versions of Yasmin™ and YAZ™, respectively, market-
ed by Barr Laboratories, Inc. in the United States. Claimants seek compensatory and punitive damages, claiming, in 
particular, that Bayer knew, or should have known, of the alleged risks and should be held liable for having failed to 
disclose them or adequately warn users. All cases pending in U.S. federal courts have been consolidated in a multidis-
trict litigation proceeding for common pre-trial management. 
A few State Attorney Generals in the U.S. are investigating the alleged off-label promotion of Yasmin™ and YAZ™ as well 
as the alleged failure to warn about an alleged increased risk of developing blood clots in violation of consumer protec-
tion statutes. One Attorney General has filed an action against Bayer. 
As of February 10, 2014, 13 class actions had been served upon Bayer in Canada and one in Israel. 
Potential Payment Obligations Under R & D Collaboration Agreements
[Table 4.94]
Maturing in
Dec. 31, 2012
Maturing in
Dec. 31, 2013
 
€ million
 
€ million
2013
238
2014
155
2014
93
2015
181
2015
186
2016
144
2016
101
2017
113
2017
74
2018
95
2018 or later
1,106
2019 or later
1,418
Total
1,798
Total
2,106
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

322
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
32. Legal risks
As of February 10, 2014, Bayer had reached agreements, without admission of liability, to settle the claims of approxi-
mately 8,250 claimants in the U.S. for a total amount of about US$1.69 billion. Bayer has only been settling claims in the 
U.S. for venous clot injuries (deep vein thrombosis or pulmonary embolism) after a case-specific analysis of medical  
records on a rolling basis. Such injuries are alleged by about 1,950 of the pending unsettled claimants. Bayer will con-
tinue to consider the option of settling individual claims for venous clot injuries in the U.S. on a case-by-case basis.
In March 2013, Bayer agreed to settle, without admission of liability, lawsuits in which plaintiffs allege a gallbladder 
­injury for a total maximum aggregate amount of US$24 million. As of February 10, 2014, about 8,800 plaintiffs had de-
cided to participate in the settlement, which represents more than 95% (90% participation required) of the eligible 
plaintiffs, so the settlement will go forward.
Additional lawsuits are anticipated. Bayer believes that it has meritorious defenses and will continue to defend itself 
vigorously against all claims that are not considered for settlement. Bayer has taken appropriate accounting measures 
for anticipated defense costs and for agreed and anticipated future settlements based on the information currently 
available and based on the number of pending and estimated future claims alleging venous clot injuries. Bayer has 
­revised the accounting measures taken for the entire Yasmin™ / YAZ™ complex for the annual financial statements to 
­reflect anticipated future cases and legal and defense costs. 
Mirena™: As of February 10, 2014, lawsuits of approximately 1,450 users of Mirena™, a levonorgestrel-releasing intra-
uterine system providing long-term contraception, had been served upon Bayer in the U.S. Most of the cases pending in 
U.S. federal courts have been consolidated in a multidistrict litigation proceeding for common pre-trial management. 
Additional lawsuits are anticipated. Plaintiffs allege personal injuries resulting from the use of Mirena™, including per-
foration of the uterus or ectopic pregnancy, and seek compensatory and punitive damages. Plaintiffs claim, inter alia, 
that Mirena™ is defective and that Bayer knew or should have known of the risks associated with it and failed to ade-
quately warn its users. As of February 10, 2014, four class actions relating to Mirena™ had been served upon Bayer in 
Canada. Bayer believes it has meritorious defenses and intends to defend itself vigorously. Based on the information 
currently available, Bayer has taken appropriate accounting measures for anticipated defense costs. 
In connection with the above proceedings concerning Yasmin™ / YAZ™ and Mirena™, Bayer is insured against product 
liability risks to the extent customary in the industry. However, the accounting measures taken with regard to the 
­Yasmin™ / YAZ™ claims exceed the available insurance coverage.
Competition law proceedings
Cipro™: Since the year 2000, multiple class action lawsuits against Bayer involving Cipro™, a medication used in the 
treatment of infectious diseases, have been pending in the United States. The plaintiffs sued Bayer and other defen-
dants, alleging that a settlement to end patent litigation reached in 1997 between Bayer and Barr Laboratories, Inc. 
­violated antitrust regulations. All actions filed in federal courts have been dismissed. The federal litigation has ended.  
A class action brought by indirect purchasers of Cipro™ in California was settled by Bayer, without admission of liabili-
ty, in June 2013. The agreement became final in December 2013. With the conclusion of the class action in California, 
only one action, filed in Kansas, remains active. Bayer believes that it has meritorious defenses and intends to defend 
itself vigorously. Bayer believes the risks remaining in this litigation are no longer material.
Patent disputes
Beyaz™ / Safyral™: In 2013, Bayer received two notices from Watson Laboratories, Inc. that Watson has filed 
­Abbreviated New Drug Applications with a Paragraph IV certification (“ANDA IV”) seeking approval of generic versions 
of both Beyaz™ and Safyral™, Bayer’s oral contraceptives containing folate, in the United States. In response, Bayer 
filed two suits against Watson in U.S. federal court for infringement of the same patent. The lawsuits were consolidated.
Yasmin™ / Yasminelle™ / YAZ™: In 2011, an opposition division of the European Patent Office revoked a formulation 
patent (“dissolution“) for Yasmin™, Yasminelle™ and YAZ™. In November 2013, a board of appeal of the European Pat-
ent Office dismissed Bayer’s appeal. The revocation of the patent is now final. The other formulation patent (“microni-
zation“) for Yasmin™, Yasminelle™ and YAZ™ had already been revoked by the European Patent Office and that decision 
is also final.
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

323
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
32. Legal risks
Betaferon™ / Betaseron™: In 2010, Bayer filed a complaint against Biogen Idec MA Inc. in U.S. federal court seeking 
a declaration by the court that a patent issued to Biogen in 2009 is invalid and not infringed by Bayer’s production and 
distribution of Betaseron™, Bayer’s drug product for the treatment of multiple sclerosis. Biogen is alleging patent 
­infringement by Bayer through Bayer’s production and distribution of Betaseron™ and Extavia™ and has sued Bayer 
­accordingly. Betaseron™ is manufactured and distributed in the United States by Bayer. Extavia™ is also a drug prod-
uct for the treatment of multiple sclerosis; it is manufactured by Bayer, but distributed in the United States by Novartis 
Pharmaceuticals Corporation, another defendant in the lawsuit.
Finacea™: In March 2013, Bayer filed a patent infringement suit in a U.S. federal court against Glenmark Generics Ltd. 
In January 2013, Bayer had received a notice from Glenmark that Glenmark had filed an ANDA IV seeking approval of a 
generic version of Bayer’s Finacea™ topical gel in the United States. 
BAY 94-9027 (rFVIII mutein): In 2013, Bayer filed a lawsuit against Nektar Therapeutics in the district court of ­Munich, 
Germany. In this proceeding, Bayer claims rights to certain European patent applications based on a past ­collaboration 
between Bayer and Nektar in the field of hemophilia. The European patent applications with the title ­“Polymer-factor 
VIII moiety conjugates” are part of a patent family registered in the name of Nektar comprising further patent applica-
tions and patents in other countries including the United States. However, Bayer believes that the patent family does 
not include any valid patent claim relevant for Bayer’s drug candidate BAY 94-9027 for the treatment of ­hemophilia A. 
Staxyn™: In April 2012, Bayer filed a patent infringement suit in a U.S. federal court against Watson Laboratories, Inc., 
and in May 2013 a similar suit against Par Pharmaceutical, Inc. and Par Pharmaceutical Companies, Inc. In 2012, Bayer 
had received notice of an ANDA IV pursuant to which Watson seeks approval to market a generic version of Bayer’s 
erectile dysfunction treatment Staxyn™ prior to patent expiration in the United States. In April 2013, Bayer had re-
ceived a similar notice from Par Pharmaceutical. Staxyn™ is an orodispersible (orally disintegrating) formulation of 
Levitra™. Both drug products contain the same active ingredient, which is protected in the U.S. by two patents expiring 
in 2018.
Bayer believes it has meritorious defenses in the above patent disputes and intends to defend itself vigorously.
Further legal proceedings
Trasylol™ / Avelox™: A qui tam complaint relating to marketing practices for Trasylol™ (aprotinin) and Avelox™ (moxi-
floxacin) filed by a former Bayer employee is pending in the United States District Court in New Jersey. The U.S. gov-
ernment has declined to intervene at the present time.
Bayer Pharma AG former shareholder litigation: In 2008, the squeeze-out of the former minority shareholders of 
Bayer Pharma AG (formerly named Bayer Schering Pharma AG), Berlin, Germany, became effective. As usual in such 
cases, several shareholders have initiated special court proceedings to review the adequacy of the compensation pay-
ments made by Bayer for the transfer of the shares in the squeeze-out. In another court proceeding initiated by former 
minority shareholders of Bayer Pharma AG (formerly Bayer Schering Pharma AG) to review the adequacy of compen-
sation payments made by Bayer in connection with the 2006 domination and profit and loss transfer agreement, the 
District Court (Landgericht) of Berlin decided in April 2013 that the compensation paid by Bayer at the time should be 
increased by about 40%. Bayer disagrees with this decision and has appealed. Appropriate accounting measures 
have been taken for this proceeding as well as for the parallel proceeding relating to the squeeze-out of the former 
­minority shareholders.
Newark Bay Environmental Matters: In the United States, Bayer is one of numerous parties involved in a series of 
claims brought by federal and state environmental protection agencies. The claims arise from operations by entities 
which historically were conducted near Newark Bay or surrounding bodies of water, or which allegedly discharged 
hazardous waste into these waterways or onto nearby land. Bayer and the other potentially responsible parties are be-
ing asked to remediate and contribute to the payment of past and future remediation or restoration costs and damages. 
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

324
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
32. Legal risks
In the Lower Passaic River matter, a group of more than sixty companies including Bayer is investigating contaminated 
sediments in the riverbed under the supervision of the United States Environmental Protection Agency (EPA) and other 
governmental authorities. Future remediation will involve some form of dredging, the nature and scope of which are 
not yet defined, and potentially other tasks. The cost of the investigation and the remediation work may be substantial if 
the final remedy involves extensive dredging and disposal of impacted sediments. In the Newark Bay ­matter, an unaffil-
iated party is currently conducting an investigation of sediments in Newark Bay under EPA supervision. The investiga-
tion is in a preliminary stage. Bayer has contributed to certain investigation costs in the past and may incur costs for fu-
ture investigation and remediation activities in Newark Bay.
Bayer has also been notified by governmental authorities acting as natural resource trustees that it may have liability 
for natural resource damages arising from the contamination of the Lower Passaic River, Newark Bay and surrounding 
water bodies. Bayer is currently unable to determine the extent of its liability.
CropScience:
Proceedings involving genetically modified rice: Several thousand plaintiffs have sued a number of Bayer Group 
companies before U.S. federal and state courts in connection with genetically modified rice. Plaintiffs have alleged that 
they suffered economic losses after traces of genetically modified rice were identified in samples of conventional long-
grain rice grown in the U.S. Without acknowledging liability, Bayer has reached settlement agreements with a majority 
of the plaintiffs, including U.S. long-grain rice growers and non-grower entities, such as rice importers and exporters, 
rice mills or rice dryers and rice seed sellers, for a total amount of approximately US$1.026 billion. Bayer is aware of 24 
unsettled claims in the U.S. Bayer intends to continue to defend itself vigorously in all cases in which reasonable resolu-
tions are not possible.
One of the remaining cases was brought by BASF to recover damages allegedly resulting from the contamination of its 
Clearfield 131 rice variety. In that case, Bayer also filed a claim against BASF alleging that BASF was negligent in its 
handling of Clearfield 131 and that its negligence contributed to the damages allegedly suffered by rice growers, rice 
mills and others in this litigation. Bayer seeks reimbursement from BASF for a portion of the amount that Bayer has 
paid in settlements. Bayer’s claim against BASF was dismissed by the trial court of first instance in a decision that is 
currently on appeal.
Bayer has established appropriate provisions for the settlement program as well as for legal and defense costs.
Asbestos: A further risk may arise from asbestos litigation in the United States. In many cases, the plaintiffs allege that 
Bayer and co-defendants employed third parties on their sites in past decades without providing them with sufficient 
warnings or protection against the known dangers of asbestos. Additionally, a Bayer affiliate in the United States is the 
legal successor to companies that sold asbestos products until 1976. Union Carbide has agreed to indemnify Bayer for 
this liability. Bayer believes it has meritorious defenses and intends to defend itself vigorously.
MaterialScience: 
Partial exemption from the surcharge under the Renewable Energy Act: Under the German Renewable Energy Act 
(Erneuerbare-Energien-Gesetz) of 2012 (“EEG 2012”), all consumers of electricity normally have to pay a surcharge 
which is used to promote the development of renewable energies in Germany (“EEG surcharge”). Some energy-inten-
sive companies are partially exempted from this surcharge. In December 2013, the European Commission launched a 
formal investigation to determine whether this partial exemption violates European Union rules on state aid (govern-
ment aid). Should this investigation result in the exemption provisions of EEG 2012 being declared invalid retroactively, 
Bayer could face claims of up to approximately €172 million for the year 2013. Bayer believes there are good argu-
ments to support the position that the partial exemption from the EEG surcharge is admissible under E.U. law and in-
tends to defend itself vigorously against any potential claims for further payments.
» TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS

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Consolidated Financial Statements
Bayer Annual Report 2013
Notes
33. Net cash provided by (used in) operating activities
Tax proceedings
Stamp taxes in Greece: In February 2014, a Greek administrative court of first instance dismissed Bayer’s appeal 
against the assessment of stamp taxes and contingent penalties in the total amount of approximately €23 million on 
certain intra-Group loans to a Greek subsidiary. Bayer is convinced that the decision is wrong and will appeal. In a 
­second court proceeding of first instance before the same court, Bayer has appealed against the assessment of stamp 
taxes and contingent penalties in a total amount of approximately €90 million. Bayer believes it has meritorious 
­arguments to support its legal position and intends to defend itself vigorously.
Notes to the Statements of Cash Flows
The statement of cash flows shows how cash inflows and outflows during the fiscal year affected the cash and cash 
equivalents of the Bayer Group. Cash flows are classified by operating, investing and financing activities in accordance 
with IAS 7 (Statement of Cash Flows). Effects of changes in the scope of consolidation are stated separately. 
Of the cash and cash equivalents, an amount of €119 million (2012: €131 million) had limited availability due to foreign 
exchange restrictions. Past experience has shown such restrictions to be of short duration. The above amount included 
€96 million (2012: €100 million) of exchange-restricted cash in Venezuela. The conversion of cash from Venezuelan 
­bolivars (VEF) into U.S. dollars is subject to a government approval process. In the event of a devaluation of the bolivar, 
the carrying amount of cash and cash equivalents will therefore be reduced accordingly. 
The cash flows reported by consolidated companies outside the eurozone are translated at average monthly exchange 
rates, with the exception of cash and cash equivalents, which are translated at closing rates. The “Change in cash and 
cash equivalents due to exchange rate movements” is reported in a separate line item.
33.	Net cash provided by (used in) operating activities
The gross cash flow for 2013 of €5,832 million (2012: €4,556 million) is the cash surplus from operating activities 
­before any changes in working capital. The cash flows by segment are shown in Note [1]. 
The net cash of €5,171 million (2012: €4,530 million) provided by operating activities (net cash flow) also takes into 
­account the changes in working capital and other non-cash transactions. 
An income-tax-related net cash outflow of €1,281 million (2012: €1,667 million) is included in the net cash flow for 
2013. The changes in income tax liabilities, income tax provisions and claims for reimbursement of income taxes are 
shown in the line item “Changes in other working capital, other non-cash items.” 
The transfers of bonds with a total value of €1,000 million to pension funds in the prior year were non-cash transactions 
and therefore did not result in an operating cash outflow. 
The sale of securities held for trading, which must be reflected under operating activities according to IAS 7, increased 
net cash flow by €200 million. 
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Consolidated Financial Statements
Bayer Annual Report 2013
Notes
34. Net cash provided by (used in) investing activities
34.	Net cash provided by (used in) investing activities
Net cash outflow for investing activities in 2013 amounted to €2,581 million (2012: €814 million). 
Additions to property, plant and equipment and intangible assets in 2013 resulted in a cash outflow of €2,157 million 
(2012: €1,929 million). Cash inflows from sales of property, plant and equipment and other assets amounted to 
€153 million (2012: €230 million). 
Cash outflows of €1,082 million (2012: €466 million) pertained to acquisitions, mainly including those of Conceptus, 
Inc., United States; Teva Animal Health Inc., United States; the soybean seed producer Wehrtec Tecnologia Agricola 
Ltda., Brazil; the soybean business of Agricola Wehrmann Ltda., Brazil; the soybean seed producer FN Semillas S.A., Ar-
gentina; PROPHYTA Biologischer Pflanzenschutz GmbH, Germany; and Steigerwald Arzneimittelwerk GmbH, Germa-
ny. The prior-year figure mainly comprised the acquisitions of the biological crop protection company AgraQuest, Inc., 
United States; the watermelon and melon seed business of Abbott & Cobb, Inc., United States; and the remaining 50% 
of the shares of Baulé S.A.S., France. Further details of acquisitions and divestitures are given in Notes [6.2] and [6.3], 
respectively.
The net cash inflow from noncurrent and current financial assets amounted to €301 million (2012: €1,069 million). 
The transfers of bonds with a total value of €1,000 million to pension funds in the prior year were non-cash transactions 
and therefore did not result in an investing cash inflow. 
The balance of the cash inflows and outflows of approximately €3 billion in connection with the transfer of capital 
­investments to a type of investment fund established in the form of a Belgian institutional SICAV – reflected in the line 
item “Cash inflows from (outflows for) current financial assets” – was zero. See also Note [35].
35. Net cash provided by (used in) financing activities
In 2013 there was a net cash outflow of €2,535 million (2012: €3,783 million) for financing activities. Net loan repay-
ments amounted to €619 million (2012: €1,946 million).
The increased use of current financial instruments led to a higher debt turnover ratio.
To allow nearly all of the investments of Bayer Pension Trust e.V. (approx. €3 billion) to be held within a single invest-
ment vehicle and thereby improve the efficiency of capital administration, for example, a type of investment fund was 
established in 2013 in the form of a Belgian institutional SICAV under the name LECTA N.V. Bayer Pension Trust is the 
sole investor in this fund. The greater part of the capital investments of Bayer Pension Trust first had to be transferred 
to Bayer AG in order to transfer them to LECTA. Bayer AG financed the purchase through an intraday loan. Bayer Pen-
sion Trust used the proceeds of the transfer to purchase an equivalent number of newly issued shares in LECTA, and 
LECTA in turn used the proceeds of the share issue to purchase the capital investments from Bayer AG. The liquidity 
­accruing to Bayer AG was subsequently used to repay the loan. The taking of the intraday loan and its repayment are 
reflected in “Issuances of debt” and “Retirements of debt,” respectively.
Cash outflows for dividend payments amounted to €1,574 million (2012: €1,366 million). Net interest payments – 
­including payments for and receipts from interest-rate swaps – decreased to €338 million (2012: €468 million).
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Consolidated Financial Statements
Bayer Annual Report 2013
Notes
36. Audit fees
Other Information
36.	Audit fees
The following fees for the services of the worldwide network of PricewaterhouseCoopers (PwC), including Pricewaterhouse­
Coopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft (PwC AG WPG), were recognized as expenses:
The fees for the auditing of financial statements mainly comprise those for the audits of the consolidated financial state-
ments of the Bayer Group and the financial statements of Bayer AG and its subsidiaries. The fees for audit-related ser-
vices and other audit work comprise those for audits of the internal control system – including project audits in connec-
tion with the implementation of new IT systems – along with interim financial statement reviews and other assurance 
services. 
37.	Related parties
Related parties as defined in IAS 24 (Related Party Disclosures) are those legal entities and natural persons that are able 
to exert influence on Bayer AG and its subsidiaries or over which Bayer AG or its subsidiaries exercise control or joint 
control or have a significant influence. They include, in particular, non-consolidated subsidiaries, joint ventures, associ-
ates and post-employment benefit plans, as well as the corporate officers of Bayer AG whose compensation is reported 
in Note [38] and in the Compensation Report, which forms part of the Combined Management Report.
Transactions with non-consolidated subsidiaries, joint ventures, associates and post-employment benefit plans are 
­carried out on an arm’s-length basis.
The following table shows the volume of transactions with related parties included in the consolidated financial state-
ments of the Bayer Group at amortized cost or using the equity method, and with post-employment benefit plans:
Related Parties
[Table 4.96]
2012
2013
 
 
Sales of 
goods and 
services
Purchases 
of goods 
and  
services
 
 
 
Receivables
 
 
 
Liabilities
 
Sales of 
goods and 
services
Purchases 
of goods 
and  
services
 
 
 
Receivables
 
 
 
Liabilities
 
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Non-consolidated  
subsidiaries
 
32
 
13
 
17
 
41
 
24
 
9
 
6
 
28
Joint ventures
26
–
10
6
25
–
5
2
Associates
10
674
4
1
8
703
3
1
Post-employment benefit 
plans
 
–
 
–
 
821
 
73
 
–
 
–
 
825
 
66
2012 figures restated
Audit Fees
[Table 4.95]
PwC
Of which PwC AG WPG
 
2012
2013
2012
2013
 
€ million
€ million
€ million
€ million
Financial statements auditing
11
10
3
3
Audit-related services and other audit work
6
4
5
3
Tax consultancy
1
2
–
–
Other services
1
1
1
1
Total
19
17
9
7
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Consolidated Financial Statements
Bayer Annual Report 2013
Notes
38. Total compensation of the Board of Management and the Supervisory Board, advances and loans
Goods and services in the amount of €703 million (2012: €674 million) were purchased from the associated company 
PO JV, LP, Wilmington, United States, mainly in the course of day-to-day business operations.
Bayer AG has undertaken to provide jouissance right capital (Genussrechtskapital) in the form of an interest-bearing 
loan with a nominal volume of €150 million for Bayer-Pensionskasse VVaG. The entire amount remained drawn as of 
December 31, 2013. Loan capital was first provided to Bayer-Pensionskasse VVaG in 2008 for its effective initial fund. 
This capital amounted to €595 million as of December 31, 2013 (2012: €595 million). The outstanding receivables bear 
interest at an average rate of 3%. Bayer AG recognized €32 million in interest for the year 2013 and €31 million for 
2012.
The transfer of capital investments from Bayer Pension Trust to LECTA N.V. is described in Notes [34] and [35]. 
Impairment losses recognized on receivables from related parties in 2013 amounted to €2 million (2012: €0 million).
38. Total compensation of the Board of Management
and the Supervisory Board, advances and loans
The compensation of the Board of Management comprises short-term payments, stock-based payments and post-­
employment benefits.
The following table shows the individual components of the Board of Management’s compensation according to IFRS:
In addition to the above compensation, actuarial gains of €1,437 thousand (2012: actuarial losses of €7,553 thousand) in-
curred in connection with pension obligations to the currently serving members of the Board of Management were recog-
nized outside profit or loss. These changes mainly resulted from the rise in interest rates (2012: decline in interest rates).
Further details are provided in the Compensation Report, which forms part of the Combined Management Report.
An amount of €18,310 thousand (2012: €13,222 thousand) is recognized in the statement of financial position for future 
payments of stock-based compensation based on virtual shares to the members of the Board of Management who held 
­office on December 31, 2013.
An amount of €6,813 thousand (2012: €3,793 thousand) is recognized in the statement of financial position for future 
payments of stock-based compensation based on the Aspire program to the members of the Board of Management who 
held office on December 31, 2013.
Board of Management Compensation according to IFRS
[Table 4.97]
2012
2013
€  thousand
€  thousand
Fixed compensation
3,394
3,774
Fringe benefits
147
182
Total short-term non-performance-related compensation
3,541
3,956
Short-term performance-related cash compensation
4,247
4,712
Total short-term compensation
7,788
8,668
Stock-based compensation (virtual Bayer shares) earned in the respective year
4,299
3,976
Change in value of existing entitlements to stock-based compensation (virtual Bayer shares)
3,136
5,030
Stock-based compensation (Aspire) earned in the respective year
2,007
2,925
Change in value of existing entitlements to stock-based compensation (Aspire)
1,196
2,312
Total stock-based compensation (long-term incentive)
10,638
14,243
Service cost for pension entitlements earned in the respective year
2,501
1,805
Total long-term compensation
13,139
16,048
Aggregate compensation (IFRS)
20,927
24,716
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329
Consolidated Financial Statements
Bayer Annual Report 2013
Notes
39. Events after the end of the reporting period
The present value of the defined benefit pension obligation for the active members of the Board of Management as of 
December 31, 2013, was €23,473 thousand (2012: €33,448 thousand).
Pension payments to former members of the Board of Management and their surviving dependents amounted to 
€12,871 thousand (2012: €12,673 thousand). The defined benefit obligation for former members of the Board of 
­Management and their surviving dependents amounted to €150,148 thousand (2012: €149,746 thousand).
The compensation of the Supervisory Board amounted to €3,309 thousand (2012: €2,974 thousand). No variable com-
pensation components were granted in 2013 following the change in the compensation system (2012: €218 thousand). 
In addition to their compensation as members of the Supervisory Board, those employee representatives who are em-
ployees of Bayer Group companies receive compensation unrelated to their service on the Supervisory Board. The total 
amount of such compensation in 2013 was €727 thousand (2012: €670 thousand).
Pension obligations for employee representatives on the Supervisory Board amounted to €2,218 thousand (2012: 
€2,412 thousand).
There were no advances or loans to members of the Board of Management or the Supervisory Board outstanding as of 
December 31, 2013, or at any time during 2013 or 2012. 
39.	 Events after the end of the reporting period
Takeover offer for Algeta ASA
On December 19, 2013, Bayer announced its intention to acquire the pharmaceutical company Algeta ASA, Norway. 
The formal takeover offer at a price of NOK 362 per share in cash was made to Algeta shareholders on January 20, 2014. 
The offer, which implies an equity value of NOK 17.6 billion (€2.1 billion), is subject to a minimum acceptance level of 
90% of the outstanding shares of Algeta ASA by the end of the offer period. The offer period expires at 9:00 a.m. Cen-
tral European Time on February 24, 2014. If the offer is successful, payment to Algeta shareholders is to be made at the 
beginning of March 2014.
Algeta ASA develops novel cancer therapies based on its world-leading, patented technologies. Its alpha-pharmaceuti-
cals are designed to target cancers using the unique properties of alpha particle radiation. The company has about 
180 employees. Bayer and Algeta have collaborated since 2009 to develop and commercialize radium-223 dichloride, 
which was approved in the United States in May 2013 under the tradename Xofigo™ and is being co-promoted there by 
Algeta and Bayer. 
The planned acquisition would strengthen HealthCare’s oncology business and support our efforts to provide patients 
with innovative treatment options.
Issuance of bonds
After the end of the reporting period – on January 21, 2014 – Bayer AG issued three tranches of bonds with a combined 
nominal volume of €2 billion under the multi-currency European Medium Term Notes program. Of the three tranches, 
one has a nominal volume of €500 million, a floating-rate coupon of 22 basis points over three-month Euribor and a 
maturity of two years. The second has a nominal volume of €750 million, a maturity of four years and a fixed-rate cou-
pon of 1.125%. The third has a nominal volume of €750 million, a maturity of seven years and a fixed-rate coupon of 
1.875%. The proceeds will be used for general corporate purposes and possible acquisitions.
Leverkusen, February 17, 2014
Bayer Aktiengesellschaft 
The Board of Management
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Bayer Annual Report 2013
Responsibility Statement
Responsibility 
Statement*
To the best of our knowledge, and in accordance with the applicable reporting principles for financial 
­reporting, the consolidated financial statements give a true and fair view of the assets, liabilities, 
financial position and profit or loss of the Bayer Group, and the combined management report includes 
a fair review of the development and performance of the business and the position of the Bayer Group 
and Bayer AG, together with a description of the principal opportunities and risks associated with the 
expected development of the Bayer Group and Bayer AG.
Leverkusen, February 17, 2014
Bayer Aktiengesellschaft
The Board of Management
Dr. Marijn Dekkers 
Chairman
Werner Baumann
Michael König
Kemal Malik
Prof. Dr. Wolfgang Plischke 
*applies exclusively to the content of the printed version of the Annual Report 2013
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331
Bayer Annual Report 2013
Independent Auditors’ Report
Independent Auditors’ 
Report
To Bayer Aktiengesellschaft, Leverkusen
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Bayer Aktiengesellschaft and  
its subsidiaries, which comprise the consolidated income statement and statement of comprehensive 
­income, the consolidated statement of financial position, the consolidated statement of cash flows, the 
consolidated statement of changes in equity and the notes to the consolidated financial statements for 
the business year from January 1, 2013 to December 31, 2013.
Board of Management’s Responsibility for the Consolidated Financial Statements
The Board of Management of Bayer Aktiengesellschaft is responsible for the preparation of these 
consolidated financial statements. This responsibility includes that these consolidated financial 
­statements are prepared in accordance with International Financial Reporting Standards, as adopted 
by the E.U., and the additional requirements of German commercial law pursuant to § (Article) 315a 
Abs. (paragraph) 1 HGB (“Handelsgesetzbuch”: German Commercial Code) and that these consoli-
dated financial statements give a true and fair view of the net assets, financial position and results of 
operations of the Group in accordance with these requirements. The Board of Management is also 
­responsible for the internal controls as the Board of Management determines are necessary to enable 
the preparation of consolidated financial statements that are free from material misstatement, 
­whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on  
our audit. We conducted our audit in accordance with § 317 HGB and German generally accepted 
standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer 
­(Institute of Public Auditors in Germany) (IDW) and additionally observed the International Standards 
on Auditing (ISA). Accordingly, we are required to comply with ethical requirements and plan and 
perform the audit to obtain reasonable assurance about whether the consolidated financial state-
ments are free from material misstatement.
An audit involves performing audit procedures to obtain audit evidence about the amounts and dis­
closures in the consolidated financial statements. The selection of audit procedures depends on the 
auditor’s professional judgment. This includes the assessment of the risks of material misstatement of 
the consolidated financial statements, whether due to fraud or error. In assessing those risks, the auditor 
considers the internal control system relevant to the entity’s preparation of consolidated financial state-
ments that give a true and fair view. The aim of this is to plan and perform audit procedures that are 
­appropriate in the given circumstances, but not for the purpose of expressing an opinion on the effec-
tiveness of the Group’s internal control system. An audit also includes evaluating the appropriateness of 
accounting policies used and the reasonableness of accounting estimates made by the Board of 
­Management, as well as evaluating the overall presentation of the consolidated financial statements. 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 
our audit opinion.
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Bayer Annual Report 2013
Independent Auditors’ Report
Audit Opinion
According to § 322 Abs. 3 Satz (sentence) 1 HGB, we state that our audit of the consolidated financial 
statements has not led to any reservations.
In our opinion based on the findings of our audit, the consolidated financial statements comply, in all 
material respects, with IFRSs, as adopted by the E.U., and the additional requirements of German com-
mercial law pursuant to § 315a Abs. 1 HGB and give a true and fair view of the net assets and financial 
position of the Group as at December 31, 2013 as well as the results of operations for the business year 
then ended, in accordance with these requirements.
Report on the Combined Management Report
We have audited the accompanying Group management report of Bayer Aktiengesellschaft for the busi-
ness year from January 1, 2013 to December 31, 2013, which is combined with the management report 
of the company. The Board of Management of Bayer Aktiengesellschaft is responsible for the prepara­
tion of the combined management report in accordance with the requirements of German commercial 
law applicable pursuant to § 315a Abs. 1 HGB. We conducted our audit in accordance with § 317 Abs. 2 
HGB and German generally accepted standards for the audit of the combined management report pro-
mulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW). Accord-
ingly, we are required to plan and perform the audit of the combined management report to obtain 
reasonable ­assurance about whether the combined management report is consistent with the consoli-
dated financial statements and the audit findings, as a whole provides a suitable view of the Group’s po-
sition and suitably presents the opportunities and risks of future development.
According to § 322 Abs. 3 Satz 1 HGB we state that our audit of the combined management report has 
not led to any reservations. 
In our opinion based on the findings of our audit of the consolidated financial statements and combined 
management report, the combined management report is consistent with the consolidated financial 
statements, as a whole provides a suitable view of the Group’s position and suitably presents the oppor-
tunities and risks of future development.
Essen, February 18, 2014
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Dr. Peter Bartels			
Anne Böcker 
Wirtschaftsprüfer			
Wirtschaftsprüferin
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333
Bayer Annual Report 2013
Independent Assurance Report
Independent Assurance 
Report
To Bayer AG, Leverkusen
We have been engaged to perform a limited assurance engagement on the online annexes of the aug-
mented online version of the Annual Report of Bayer AG, Leverkusen, (hereinafter: the Company), for 
the business year from 1 January to 31 December 2013 (“Annual Report 2013 – Augmented Version”; 
hereinafter: Online Version) as well as on the chapters “Investor Information” and “Reporting Princi-
ples” of the Online Version.1
Management’s Responsibility
Company’s Board of Managing Directors is responsible for the proper preparation of the report in accor-
dance with the criteria stated in the Sustainability Reporting Guidelines Vol. 3.1 (pp. 7 to 17) of the Global 
Reporting Initiative (GRI):
•	 Materiality,
•	 Stakeholder Inclusiveness,
•	 Sustainability Context,
•	 Completeness,
•	 Balance,
•	 Clarity,
•	 Accuracy,
•	 Timeliness,
•	 Comparability and
•	 Reliability.
This responsibility includes the selection and application of appropriate methods to prepare the report 
and the use of assumptions and estimates for individual sustainability disclosures which are reasonable 
in the circumstances. Furthermore, the responsibility includes designing, implementing and maintaining 
systems and processes relevant for the preparation of the Online Version.
Practitioner’s Responsibility
Our responsibility is to express a conclusion based on our work performed as to whether anything has 
come to our attention that causes us to believe that the information marked with the label “limited assu-
rance” in the Online Version of the Company’s Annual Report for the business year from 1 January to 31 
December 2013 have not been prepared, in all material respects, in accordance with the above menti-
oned criteria of the Sustainability Reporting Guidelines Vol. 3.1 (pp. 7 to 17) of the GRI. 
Any links to external sources of documentation as well as prospective statements were not in scope of 
our engagement.
We also have been engaged to make recommendations for the further development of sustainability ma-
nagement and sustainability reporting based on the results of our assurance engagement.
1Our engagement applied to the German and English augmented online version of the Annual Report of Bayer AG, which describes the  
sustainability perfor-mance of the Company. This text is a translation of the Independent Assur-ance Report issued in German language –  
the German text is authoritative. The Online Version is available at www.bayer.de/GB13 and www.bayer.com/AR13 respectively. 
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Bayer Annual Report 2013
Independent Assurance Report
We conducted our work in accordance with the International Standard on Assurance Engagements 
(ISAE) 3000. This Standard requires that we comply with ethical requirements and plan and perform the 
assurance engagement, under consideration of materiality, in order to provide our conclusion with limi-
ted assurance.
In a limited assurance engagement the evidence-gathering procedures are more limited than for a reaso-
nable assurance engagement (for example, an audit of financial statements in accordance with § (Artic-
le) 317 HGB (“Handelsgesetzbuch”: “German Commercial Code”)), and therefore less assurance is obtai-
ned than in a reasonable assurance engagement. The procedures selected depend on the practitioner‘s 
judgement.
Within the scope of our work we performed amongst others the following procedures:
•	 Inquiries of personnel responsible for the preparation of the Online Version regarding the process to 
prepare the reporting of sustainability information and the underlying internal control system;
•	 Inspection of documents regarding the sustainability strategy as well as understanding the sustain-
ability management structure, the stakeholder dialogue and the development process of Company’s 
sustainability program;
•	 Inquiries of personnel in the corporate functions that are responsible for the individual chapters of 
the Online Version;
•	 Recording of the systems and processes for collection, analysis, validation and aggregation of sus-
tainability data and their documentation on a sample basis;
•	 Performance of site visits as part of the inspection of processes for collecting, analyzing and aggre-
gating selected data at:	
– Bayer CropScience Kansas City (United States of America),	
– Bayer CropScience Knapsack (Germany),	
– Bayer CropScience Muttenz (Switzerland),	
– Bayer HealthCare Berlin (Germany),	
– Bayer HealthCare Shawnee (United States of America),	
– Bayer MaterialScience Caojing (China),	
– Bayer MaterialScience Leverkusen (Germany),	
– Currenta Leverkusen (Germany);
•	 Analytical procedures on sustainability data included in the Online Version;
•	 Gaining further evidence for selected data of the Online Version through inspection of internal docu-
ments, contracts and invoices/reports from external service providers.
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Bayer Annual Report 2013
Independent Assurance Report
Conclusion
Based on our limited assurance engagement, nothing has come to our attention that causes us to believe 
that the information marked with the label “limited assurance” in the Online Version of the Company’s 
Annual Report for the business year from 1 January to 31 December 2013 has not been prepared, in all 
material respects, in accordance with the above mentioned criteria of the Sustainability Reporting 
Guidelines Vol. 3.1 (pp. 7 to 17) of the GRI. 
Emphasis of Matter – Recommendations
Without qualifying our conclusion above, we make the following recommendations for the further devel-
opment of the Company’s sustainability management and sustainability reporting:
•	 Further formalization of the internal controls system for sustainability information and transforma-
tion into standardized processes in the course of the further development of Integrated Reporting;
•	 Further development of the materiality analysis in consideration of the new requirements for Inte-
grated Reporting and the new G4 Guidelines of GRI.
Düsseldorf, February 27, 2014
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Michael Werner			
ppa. Aissata Touré 					
Wirtschaftsprüferin					
(German Public Auditor)
» TABLE OF CONTENTS

For direct access to a chapter, simply click on its name.
Governance Bodies
337
Organization Chart
341
GRI Index and UN Global Compact Principles
342
GRI Statement
344
Glossary
345
Reporting Principles
350
Five-Year Summary
351
Subsidiary and Affiliated Companies 	
353 
of the Bayer Group
» TABLE OF CONTENTS
03 
Further Information
336
Further Information
Bayer Annual Report 2013

337
Further Information
Bayer Annual Report 2013
Governance Bodies
Supervisory Board
Members of the Supervisory Board held offices as members of the supervisory board or a comparable supervising body 
of the corporations listed (as at December 31, 2013 or the date on which they ceased to be members of the Supervisory 
Board of Bayer AG):
Governance Bodies
Werner Wenning 
Leverkusen, Germany 
(born October 21, 1946)
Chairman of the Supervisory 
Board effective October 2012
Chairman of the Supervisory 
Board of Bayer AG and  
Chairman of the Supervisory 
Board of E.ON SE
Memberships on other  
super­visory boards:
•	 Deutsche Bank AG  
(until May 2013)
•	 E.ON SE (Chairman) 
•	 HDI V.a.G 
(until May 2013)
•	 Henkel Management AG 
(effective September 2013)
•	 Siemens AG 
(Vice Chairman effective 
October 2013)
•	 Talanx AG 
(until May 2013)
Memberships in comparable 
­supervising bodies of German or 
foreign corporations:
•	 Freudenberg & Co. KG  
(Chairman of the  
Shareholders’ Committee)  
(until June 2013)
•	 Henkel AG & Co. KGaA  
(Member of the  
Shareholders’ Committee) 
Thomas de Win 
Cologne, Germany 
(born November 21, 1958)
Vice Chairman of the  
Super­visory Board,  
Member of the Supervisory 
Board effective April 2002
Chairman of the Bayer Group 
Works Council
Chairman of the Bayer Central 
Works ­Council
Memberships on other  
super­visory boards:
•	 Bayer MaterialScience AG
Dr. Paul Achleitner 
Munich, Germany 
(born September 28, 1956)
Member of the Supervisory 
Board effective April 2002
Chairman of the Supervisory 
Board of Deutsche Bank AG
Memberships on other  
super­visory boards:
•	 Daimler AG 
•	 Deutsche Bank AG  
(Chairman) 
•	 RWE AG 
(until April 2013)
Memberships in comparable 
­supervising bodies of German or 
foreign corporations:
•	 Henkel AG & Co. KGaA  
(Member of the  
Shareholders’ Committee) 
Dr. Clemens Börsig 
Frankfurt am Main, Germany 
(born July 27, 1948)
Member of the Supervisory 
Board effective April 2007
Member of various  
supervisory boards
Memberships on other  
super­visory boards:
•	 Daimler AG 
•	 Linde AG 
Memberships in comparable 
­supervising bodies of German or 
foreign corporations:
•	 Emerson Electric Co.
André van Broich 
Dormagen, Germany 
(born June 19, 1970)
Member of the Supervisory 
Board effective April 2012
Chairman of the Works Council 
of the Dormagen site of Bayer
Memberships on other  
super­visory boards:
•	 Bayer CropScience AG 
» TABLE OF CONTENTS FURTHER INFORMATION

338
Further Information
Bayer Annual Report 2013
Governance Bodies
Thomas Ebeling 
Muri bei Bern, Switzerland 
(born February 9, 1959)
Member of the Supervisory 
Board effective April 2012
Chief Executive Officer of 
­ProSiebenSat.1 Media AG
Memberships in comparable 
­supervising bodies of German or 
foreign corporations:
•	 Lonza Group AG 
(effective April 2013)
Dr.-ING. Thomas Fischer 
Krefeld, Germany 
(born August 27, 1955)
Member of the Supervisory 
Board effective October 2005
Chairman of the Group 
­Managerial Employees’ 
­Committee of Bayer
Memberships on other  
super­visory boards:
•	 Bayer MaterialScience AG
Peter Hausmann 
Winsen / Aller, Germany 
(born February 13, 1954)
Member of the Supervisory 
Board effective April 2006
Member of the Executive Com-
mittee of the German Mining, 
Chemical and Energy Industrial 
Union
Memberships on other  
super­visory boards:
•	 Continental AG 
(effective July 2013)
•	 Henkel AG & Co. KGaA 
(effective April 2013)
•	 50Hertz Transmission 
GmbH
•	 Vivawest Wohnen GmbH
Reiner Hoffmann 
Wuppertal, Germany 
(born May 30, 1955)
Member of the Supervisory 
Board effective October 2006
North Rhine District Secretary 
of the ­German Mining, Chemi-
cal and Energy ­Industrial Union
Memberships on other  
super­visory boards:
•	 Evonik Services GmbH 
(Vice Chairman) 
•	 SASOL Germany GmbH 
(Vice Chairman)
Yüksel Karaaslan  
Hohen Neuendorf, Germany 
(born March 1, 1968)
Member of the Supervisory 
Board effective April 2012
Chairman of the Works Council 
of the Berlin site of Bayer
Vice Chairman of the Bayer 
Central Works ­Council
Memberships on other  
super­visory boards:
•	 Bayer Pharma AG
Dr. rer. pol.  
Klaus Kleinfeld  
New York, U.S.A. 
(born November 6, 1957)
Member of the Supervisory 
Board effective April 2005
Chairman and Chief Executive 
Officer of Alcoa Inc. 
Memberships in comparable 
­supervising bodies of German 
or foreign corporations:
•	 Member of the Board of 
­Directors of Morgan ­Stanley 
Petra Kronen 
Krefeld, Germany 
(born August 22, 1964)
Member of the Supervisory 
Board effective July 2000
Chairman of the Works Council 
of the Uerdingen site of Bayer
Memberships on other  
super­visory boards:
•	 Bayer MaterialScience AG 
(Vice Chair­man)
Dr. rer. nat. Helmut Panke  
Munich, Germany 
(born August 31, 1946)
Member of the Supervisory 
Board effective April 2007
Member of various supervisory 
boards
Memberships in comparable 
­supervising bodies of German or 
foreign corporations:
•	 Microsoft Corporation 
•	 Singapore Airlines Limited 
•	 UBS AG
» TABLE OF CONTENTS FURTHER INFORMATION

339
Further Information
Bayer Annual Report 2013
Governance Bodies
Sue H. Rataj 
Sebastopol, U.S.A. 
(born January 8, 1957)
Member of the Supervisory 
Board effective April 2012
Member of the Board of 
­Directors (non-executive) of  
Cabot Corporation, Boston, 
U.S.A.
Petra Reinbold-Knape 
Gladbeck, Germany 
(born April 16, 1959)
Member of the Supervisory 
Board effective April 2012
Northeast District ­Secretary of 
the German Mining, Chemical 
and Energy Industrial Union
Memberships on other  
super­visory boards:
•	 envia Mitteldeutsche 
­Energie AG
•	 Vattenfall Europe  
Genera­tion AG
Memberships in comparable 
­supervising bodies of German or 
foreign corporations:
•	 MDSE Mitteldeutsche  
Sanierungs- und 
Entsorgungs­gesellschaft 
mbH 
Michael Schmidt-Kiessling 
Schwelm, Germany 
(born March 24, 1959)
Member of the Supervisory 
Board effective April 2012
Vice Chairman of the Works 
Council of the Elberfeld site of 
Bayer
Memberships on other  
super­visory boards:
•	 Bayer Pharma AG 
Prof. Dr.-Ing.  
Ekkehard D. Schulz 
Krefeld, Germany 
(born July 24, 1941)
Member of the Supervisory 
Board effective April 2005
Member of various supervisory 
boards
Memberships on other  
super­visory boards:
•	 MAN SE (Vice Chairman) 
•	 RWE AG 
Dr. Klaus Sturany* 
Ascona, Switzerland 
(born October 23, 1946)
Member of the Supervisory 
Board effective April 2007
Member of various supervisory 
boards
Memberships on other  
super­visory boards:
•	 Hannover  
Rückversicherung AG  
(Vice Chairman)
Memberships in comparable 
­supervising bodies of German  
or foreign corporations:
•	 Sulzer AG 
Prof. Dr. Dr. h.c. mult.  
Ernst-Ludwig Winnacker 
Munich, Germany 
(born July 26, 1941)
Member of the Supervisory 
Board effective April 1997
Secretary General of the  
Human Frontier Science 
­Program, Strasbourg
Memberships on other  
super­visory boards:
•	 Medigene AG (Chairman) 
(until July 2013) 
•	 Wacker Chemie AG 
Oliver Zühlke  
Solingen, Germany 
(born December 11, 1968)
Member of the Supervisory 
Board effective April 2007
Chairman of the Works Council 
of the Leverkusen site of Bayer
Chairman of the  
Bayer ­European Forum
Standing committees  
of the Supervisory Board  
of Bayer AG  
(as at Dec. 31, 2013)
Presidial Committee /  
Mediation Committee 
Wenning (Chairman),  
Achleitner, Hausmann,  
de Win 
Audit Committee 
Sturany* (Chairman),  
Fischer, Hoffmann, 
Schulz, Wenning, de Win 
Human Resources  
Committee   
Wenning (Chairman),  
Achleitner, Kronen, 
­Zühlke
Nominations 
Committee 
Wenning (Chairman),  
Achleitner
* independent expert member pursuant  
to Section 100 Paragraph 5 of the German 
Stock Corporation Act (AktG)
» TABLE OF CONTENTS FURTHER INFORMATION

340
Further Information
Bayer Annual Report 2013
Governance Bodies
Board of Management
Members of the Board of Management held offices as members of the supervisory board or a comparable supervising  
body of the corporations listed (as at December 31, 2013 or the date on which they ceased to be members of the Board 
of Management of Bayer AG):
Dr. Marijn Dekkers 
(born September 22, 1957)
Chairman  
(effective October 1, 2010)
Member of the Board of 
­Management effective  
January 1, 2010, appointed  
until December 31, 2014
•	 Board of Directors of
­General Electric Company
Kemal Malik 
(born September 29, 1962)
Member of the Board of 
­Management effective 
February 1, 2014, appointed 
until January 31, 2017
Werner Baumann  
(born October 6, 1962)
Member of the Board of 
­Management effective  
January 1, 2010, appointed  
until ­December 31, 2017
•	 Bayer Business Services
GmbH (Chairman)
•	 Bayer CropScience AG
(Chairman)
Michael König  
(born September 3, 1963)
Member of the Board of 
­Management effective 
April 1, 2013, appointed  
until March 31, 2016
Labor Director  
(since June 1, 2013)
•	 Bayer HealthCare AG
(Chairman)
(since June 1, 2013)
•	 Bayer Pharma AG
(Chairman)
(since June 1, 2013)
•	 Currenta Geschäftsfüh-
rungs-GmbH (Chairman)
(since June 1, 2013)
Prof. Dr. Wolfgang Plischke 
(born September 15, 1951)­
Member of the Board of  
Management effective  
March 1, 2006, appointed  
until April 29, 2014
•	 Bayer MaterialScience AG
(Chairman)
•	 Bayer Technology Services
GmbH (Chairman)
Dr. Richard Pott 
born May 11, 1953
Member of the Board  
of ­Management until  
May 31, 2013
Labor Director
•	 Bayer Chemicals AG
(Chairman)
•	 Bayer HealthCare AG
(Chairman)
•	 Bayer Pharma AG
(Chairman)
•	 Currenta Geschäfts-
führungs-GmbH
(Chairman)
•	 SCHOTT AG
» TABLE OF CONTENTS FURTHER INFORMATION

341
Further Information
Bayer Annual Report 2013
Organization Chart
Organization Chart
[Graphic 5.1]
Bayer AG (Holding Company)
Group Management Board
Werner Baumann
Finance
Marijn Dekkers
Chairman
Kemal Malik 
Innovation2
Michael König *
Human Resources, Tech-
nology2, Sustainability2
Wolfgang Plischke 1
Technology, Innova-
tion & Sustainability
Corporate Center
Corporate Office 
P. Molan
Corporate Brand,  
Communications and  
Government Relations 
H. Heitmann
Investor Relations  
A. Rosar
Corporate Auditing  
R. Meyer
Law, Patents & Compliance  
R. Hartwig 
Regional Coordination  
I. Paterson
Group Accounting &  
Controlling  
U. Hauck
Finance  
P. Müller
Taxes  
B. - P. Bier
Mergers & Acquisitions 
F. Rittgen 
Environment &  
Sustaina­bility 
W. Grosse Entrup
Corporate Human  
Resources & Organization 
H. - U. Groh
Corporate Development  
P. Hausner
Innovation  
N. N.
Technology &  
Manufacturing Strategy  
T. Kirchner
Bayer CropScience
L. Condon (photo)
Chief Executive Officer
M. A. Schulz
Chief Financial OfficerMR
m. reichardt 
Agricultural Commercial 
Operations 
L. van der Broek
Market Leadership Strategy 
M. Haug
Human Resources
S. Kurzawa
Communications
G. Marchand
General Counsel
C. D. Nicholson
Research & Development
D. Backhaus
Product Supply
G. Riemann
Environmental Science
M. Kremer
Strategy 
B. Naaf*
Business Management 
Business Areas
Service Areas
*	Labor Director		
1 until April 29, 2014 
2 effective April 30, 2014
Bayer HealthCare
O. Brandicourt (photo)
Chief Executive Officer
M. Vehreschild 
Chief Financial Officer
D. Ehle 
Animal Health
E. L. Mann
Consumer Care
A. Main
Medical Care
A. Fibig
Pharmaceuticals
A. Busch
Global Drug Discovery
J. Möller
Global Development
M. Devoy
Chief Medical Officer
H. Klusik*
Product Supply
N. Sheail
Global Business 
­Development & Licensing
S. Gehring
General Counsel
A. Günther
Human Resources
O. Renner
Communications and  
Public Affairs
Bayer MaterialScience
P. Thomas (photo)
Chief Executive Officer
A. Steiger-Bagel 
Chief Financial Officer
T. Van Osselaer 
Industrial Operations
M. Steilemann
Polycarbonates
J. Wolff
Polyurethanes
D. Meyer
Coatings, Adhesives, 
Specialties
G. Harnier
General Counsel 
M. Bernhardt*
Human Resources 
R. Northcote
Communications and  
Public Affairs
as of March 1, 2014
Bayer Business Services
Executive Board 
D. Hartert (photo)
Chairman
W. Oehlschläger *
Bayer Technology Services
D. Van Meirvenne 
Managing Director
Currenta
Executive Board 
G. Hilken (photo)
Chairman
J. Waldi * 
» TABLE OF CONTENTS FURTHER INFORMATION

342
Further Information
Bayer Annual Report 2013
UNGC 
prin­
ciples
GRI Indicators according to the G3.1 Guidelines
Reported
Page reference
Online annex
STRATEGY AND ANALYSIS
1-10
1.1
Statement from the most senior decision-maker of the organization
full 
1-7
1.2
Description of key impacts, risks, and opportunities
full 
48-50, 59, 62, 64f., 84f., 94-96, 109, 
214f., 216f.
3-1.3-1, 3-3-BHC-1, 3-6-2
ORGANIZATIONAL PROFILE
2.1
Name of the organization
full 
46
2.2
Primary brands, products, and / or services
full 
46, 60f., 116-119, 282f.
2.3
Operational structure of the organization
full 
60f., 263-265
2.4
Location of organizations headquarters
full 
46
2.5
Number of countries where the organization operates, and names of countries with major 
operations
full 
47, 168f.
2.6
Nature of ownership and legal form
full 
42, 46
2.7
Markets served
full 
46f., 68f., 116-119, 168
2.8
Scale of the reporting organization
full 
47, 170f., 178
2.9
Significant changes during the reporting period
full 
62, 80, 265f.
2.10
Awards received in the reporting period
full 
41f., 106
2-1, 3-7-20
REPORT PARAMETERS
3.1
Reporting period for information provided
full 
front cover, 350
3.2
Date of most recent previous report
full 
Annual Report: 28.02.2013 
Sustainable Development Report: 
26.04.2013
3.3
Reporting cycle
full 
annualy
3.4
Contact point for questions regarding the report or its contents
full 
353
3.5
Process for defining report content
full 
84, 350
3-6-1
3.6
Boundary of the report 
full 
350
3.7
State any specific limitations on the scope or boundary of the report
full 
350
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and 
other entities
full 
350
3.9
Data measurement techniques and the bases of calculations
full 
135f., 245-258, 350
3.10
Explanation of the effect of any re-statements of information provided in earlier reports, and 
the reasons for such re-statement 
full 
61, 94, 102, 153-158, 160, 162,  
164-168, 170, 172-175, 177-179,  
228-232, 234, 262f., 269-275, 277f., 
280f., 284f., 286-291, 295f., 298,  
301, 304, 308-312, 315, 327, 352
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement 
methods applied in the report
full 
28, 350
3.12
Table identifying the location of the Standard Disclosures in the report 
full 
342-343
3.13
Policy and current practice with regard to seeking external assurance 
full 
331-335, 350
GOVERNANCE, COMMITMENTS, AND ENGAGEMENT
1-10
4.1
Governance structure of the organization
full 
32-36, 186-188
4.2
Indicate whether the Chair of the highest governance body is also an executive officer
full 
32-36, 185-188, 337-341
4.3
Number and gender of members of the highest governance body that are independent and / or 
non-executive members
full 
187f., 337-340
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the 
highest governance body
full 
43, 187, Financial Calendar
3-6-2
4.5
Linkage between compensation of the highest governance body, senior managers, and 
executives and the organization’s performance
full 
94, 191, 193-207
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided
full 
188, 191
1-10
4.7
Process for determining the composition, qualifications, and expertise of the members of the 
highest governance body and its committees, including any consideration of gender and other 
indicators of diversity
full 
94f., 191
1-10
4.8
Statements of mission or values, codes of conduct, and principles relevant to economic, 
environmental, and social performance
full 
47f., 95
3-6-4
4.9
Procedures of the highest governance body for overseeing the organization, identification 
and management of sustainability performance, including relevant risks and opportunities, 
and adherence or compliance with internationally agreed standards, codes of conduct, and 
principles
full 
187, 191, 217
4.10
Processes for evaluating the highest governance body’s own performance, particularly with 
respect to sustainability
full 
32, 205-207
7
4.11
Explanation if precautionary approach or principle is addressed 
full 
119
3-10-1
1-10
4.12
Support of externally developed economic, environmental, and social charters, principles, or 
other initiatives 
full 
96, 120f., 135, 138, 143, 191
3-3-BHC-1, 3-5-BCS-1, 
3-10-2
4.13
Principal memberships in industry associations and / or national / international advocacy 
organization´s 
full 
96
3-6-2, 3-10-BCS-1
1-10
4.14
List of stakeholder groups engaged by the organization 
full 
59
4.15
Basis for identification and selection of stakeholders with whom to engage
full 
59
3-6-2
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by 
stakeholder group 
full 
59, 85
3-6-1, 3-6-2
1-10
4.17
Key topics and concerns that have been raised through stakeholder engagement, and how the 
organization has responded
full 
59, 94, 216
3-6-1, 3-6-2
1, 6, 7
ECONOMIC PERFORMANCE – MANAGEMENT APPROACH
full
46f., 49f., 57f., 108
EC1
Direct economic value generated and distributed
full 
57f., 148, 274-277
3-13-1
7
EC2
Financial implications and other risks and opportunities due to climate change 
full 
133f., 137, 218, 220, 224
1,6
EC3
Coverage of the organization´s defined benefit plan obligations 
full 
101, 295-303
EC4
Significant financial assistance received from government 
full 
3-5-2
EC5
Range of ratios of standard entry level wage by gender compared to local minimum wage at 
significant locations of operation
full
3-7-8
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant locations 
of operation 
partial
108-115, 122
3-8-1
6
EC7
Local hiring: policy and proportion of senior management hired from the local community
full
104
EC8
Infrastructure investments and services provided primarily for public benefit 
full
150
3-3-BHC-1, 3-8-7,  
3-10-BCS-2, 3-13-3
Index of the Global Reporting Initiative (GRI) 
and the 10 UN Global Compact Principles
GRI and UN Global Compact Index
» TABLE OF CONTENTS FURTHER INFORMATION

343
Further Information
Bayer Annual Report 2013
UNGC 
prin­
ciples
GRI Indicators according to the G3.1 Guidelines
Reported
Page reference
Online annex
7, 8, 9
ENVIRONMENTAL PERFORMANCE – MANAGEMENT APPROACH
full
49f., 113, 132-135, 137-144, 147, 
191, 221
3-1.3-1
8,9
EN1
Materials used by weight or volume 
partial
114f.
3-8-8
8,9
EN2
Percentage of materials used that are recycled input materials 
not reported
8
EN3 / 
EN4
Direct and indirect energy consumption by primary energy source
full
132f.
7
EN5
Energy saved due to conservation and efficiency improvements
full
133f.
3-12.2-1
EN6
Initiatives to provide energy-efficient or renewable energy based products and services, and 
reductions in energy requirements as a result of these initiatives
full
133f.
3-12.2-2
8
EN8
Total water withdrawal by source 
full
139
EN9
Water sources significantly affected by withdrawal of water
full
138
3-12.3-1
EN10
Percentage and total volume of water recycled and reused
full
139
3-12.3-3
8
EN11
Use of land in, or adjacent to, protected areas and areas of high biodiversity value outside 
protected areas
partial
3-12.5-2
8
EN12
Significant impacts of activities, products, and services on biodiversity in protected areas
full
142f.
3-12.5-1, 3-12.5-2
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity
full
142f.
3-12.5-1
8,9
EN16
Total direct and indirect greenhouse gas emissions by weight 
full
135f.
3-12.2-5
8
EN17
Other relevant indirect greenhouse gas emissions by weight 
full
133, 135, 137
3-12.2-6
7,8,9
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
full
133f.
3-12.2-1, 3-12.2-3,  
3-12.2-4, 3-12.2-6
8
EN19
Emissions of ozone-depleting substances by weight 
full
137
8
EN20
NOx, SOx, and other significant air emissions by type and weight 
full
137f.
3-12.2-7
8
EN21
Total water discharge by quality and destination 
full
140
8
EN22
Total weight of waste by type and disposal method 
full
141f.
3-12.2-4, 3-12.4-1, 3-12.4-2
8
EN23
Total number and volume of significant spills
full
144, 147
3-12.6-1
7,8,9
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact 
mitigation
full
67, 82-84, 124-126, 133f.
3-10-BCS-3, 3-12.2-2, 
3-12.5-1
EN27
Percentage of products sold and their packaging materials that are reclaimed by category 
not reported
EN28
Monetary value of significant fines and total number of non-monetary sanctions for non-
compliance with environmental laws and regulations 
full
221, 304, 321, 323f.
EN29
Significant environmental impacts of transporting products and other goods and materials 
used for the organization’s operations, and transporting members of the workforce
full
133, 137
3.12.2-6
SOCIAL PERFORMANCE 
1, 3, 6
Labor Practices and Decent Work – Management Approach
full
49f., 94-107, 128, 221
3-1.3-1
LA1
Total workforce by employment type, employment contract, and region, broken down by gender
full
96-98
3-7-1, 3-7-3, 3-7-17
6
LA2
Total number and rate of new employee hires and employee turnover by age group, gender, 
and region
partial
97
3-7-2, 3-7-19
1,3
LA4
Employees covered by collective bargaining agreements
full
103
3-7-12
1,3
LA5
Minimum notice period(s) regarding significant operational changes, including whether it is 
specified in collective agreements
full
102
3-6-2, 3-7-10, 3-7-12
1
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related 
fatalities by region and by gender
partial
128f.
3-11-1
1
LA8
Prevention and risk-control programs in place regarding serious diseases
fully
107, 128f.
3-7-21, 3-11-2, 3-11-3
LA10
Average hours of training per year per employee by gender, and by employee category 
partial
100
LA11
Programs for skills management and lifelong learning that support the continued employability
full
98-100, 106f.
3-7-5, 3-7-6, 3-7-7
LA12
Percentage of employees recieving regular performance reviews
full
96, 98
1,6
LA13
Composition of governing bodies and breakdown of employees according to age 
group / gender / culture
partial
104, 106, 188, 337-340
3-7-15
1,6
LA14
Ratio of basic salary and remuneration of women to men by employee category, by significant 
locations of operation 
partial
100
3-7-8
1,6
LA15
Return to work and retention rates after parental leave, by gender
full
105
3-7-18
1-6
Human Rights – Management Approach
full
49f., 84, 101, 103, 109-112, 132, 
191-193
3-8-7
1-6
HR1
Significant investment agreements and contracts that include clauses incorporating human 
rights concerns, or that have undergone human rights screening (percentage and total 
number)
partial
132
1-6
HR2
Percentage of significant suppliers, contractors and other business partners that have 
undergone human rights screening, and actions taken 
partial
109f.
3-8-4
1-6
HR3
Employee training on human rights, including the percentage of employees trained 
partial
101, 111
3-8-5
1,2,6
HR4
Total number of incidents of discrimination and corrective actions taken
partial
191, 193, 216
1-5
HR5-7
Operations and significant suppliers: support of freedom of association and collective 
bargaining, abolition of child labor, elimination of all forms of forced or compulsory labor
full
101-103, 109-112
3-7-12
HR10
Percentage / Number of operations verified for observance of human rights
partial
101, 109-112, 191-193
HR11
Number of grievances relating to human rights and measures taken
partial
101, 109-112, 191, 193, 216
10
Social Performance: Society – Management Approach
full
49f., 130f., 138, 148f., 191-193, 221
3-1.3-1, 3-6-2, 3-13-2
SO1
Percentage of operations with implemented local community engagement, impact assessments, 
and development programs
full
148
3-6-2, 3-13-2
10
SO2
Corruption: Percentage and total number of business units analyzed
partial
191f.
3-18.3-1
10
SO3
Corruption: Percentage of employees trained in anti-corruption
full
191f.
3-18.3-1
10
SO4
Actions taken in response to incidents of corruption
partial
191-193, 216, 221, 304, 321
3-18.3-1
10
SO5
Public policy positions and participation in public policy development and lobbying 
full
122
3-6-2, 3-5-3, 3-10-6
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related 
institutions by country
full
3-6-2, 3-13-2
SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices 
and their outcomes
full
221, 304, 321f.
SO8
Monetary value of significant fines and sanctions for non-compliance with laws and regulations full
221, 304, 321-325
SO9
Operations with (potential) negative impacts on local communities
full
130f., 138, 144
3-11-3, 3-11-4
SO10
Prevention and mitigation measures implemented in operations with significant potential or 
actual negative impacts on local communities
full
130f., 138, 144
3-12.3-2, 3-12.6-1
1, 8
Product Responsibility – Management Approach
full
49f., 116-128, 219-221
3-1.3-1, 3-6-2, 3-9-BHC-1, 
3-9-BHC-2
1,8
PR1
Product life cycle stages for which health and safety impacts are assessed and percentage of 
products subject to such procedures
full
83, 119-121, 123-125, 127f.
3-10-2, 3-10-4, 3-10-BCS-2, 
3-10-BMS-1
8
PR3
Type of product information required by procedures, and percentage of products subject to 
such information requirements 
full
119-121, 123, 125, 127f.
3-10-BHC-1
PR5
Practices related to customer satisfaction, including results of surveys measuring customer 
satisfaction
partial
3-6-2
10
PR6
Programs for adherence to laws, standards, and voluntary codes related to marketing 
communications
full
116-119
3-9-BHC-1, 3-9-BHC-2
PR9
Significant fines for non-compliance with laws and regulations concerning the provision and 
use of products and services 
full
221, 304, 321-324
GRI and UN Global Compact Index
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Further Information
Bayer Annual Report 2013
344
GRI-Statement
GRI-Statement
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345
Further Information
Bayer Annual Report 2013
Glossary
Glossary
A
Adalat™ Drug product for  
the treatment of hypertension;  
active ingredient: nifedipine
Adempas™ Drug product for 
the treatment of two types of 
pulmonary hypertension: chron-
ic thromboembolic pulmonary 
hypertension (CTEPH) and  
pulmonary arterial hypertension 
(PAH); active ingredient: riociguat
Advantage™ product line  
(Advantix™ and other brands) 
Flea, tick and worm control  
product for dogs and cats;  
active ingredient: imidacloprid
Aleve™ / Apronax™ / Flanax™ 
Analgesic; active ingredient:  
naproxen
Alka-Seltzer Plus™ Drug prod-
uct that reduces pain and fever 
Antacids Drug products to treat 
heartburn and acid-related 
stomach complaints
APEC™ Brand name for particu-
larly heat-resistant polycar-
bonates for application at tem-
peratures of up to 200 °Celsius  
Arize™ Hybrid rice seed
Aspirin™ World-famous  
analgesic; active ingredient: 
acetylsalicylic acid
Aspirin™ Cardio Drug product 
for secondary prevention of 
heart attacks; active ingredient: 
acetylsalicylic acid
Avalox™ / Avelox™ Drug  
product for the treatment of  
respiratory tract infections;  
active ingredient: moxifloxacin
B
Bayblend™ Brand name for 
polymer blends based on  
polycarbonate and acrylonitrile 
butadiene styrene 
Baycox™ Drug product to  
control coccidiosis, a parasitic 
infectious disease in young  
farm animals; active ingredient:  
toltrazuril
Bayer Garden™ / Bayer Ad-
vanced™ Umbrella brands for 
consumer home and garden 
products
Baytril™ Drug for the treatment 
of severe veterinary infections; 
active ingredient: enrofloxacin
Bepanthen™ Range of skincare 
and wound-healing products; 
active ingredient: dexpanthenol 
Bepanthol™ Range of care 
products for dry, irritated skin; 
value-adding ingredient: pan-
thenol
Berocca™ Dietary supplement 
containing B-group vitamins,  
vitamin C and minerals
Betaferon™ / Betaseron™  
Drug product for the treatment 
of multiple sclerosis (MS); active 
ingredient: interferon beta-1b
Breeze™ Blood glucose meter 
for people with diabetes for 
simple, safe and rapid use at 
home or while traveling
C
Canesten™ Antifungal medica-
tion to treat skin infections;  
active ingredient: clotrimazole 
or bifonazole
Capital invested (CI) Capital  
invested comprises the assets 
on which the company must  
obtain a return by generating 
an appropriate cash inflow;  
in some cases the cost of ulti-
mately reproducing the assets 
must be earned in addition. 
Cash flow return on invest-
ment (CFROI) The CFROI is the 
difference between the gross 
cash flow in the period and the 
cost of reproducing depletable 
assets, divided by the capital  
invested. The CFROI is thus a 
measure of the return on capital 
employed in the period.
Cash value added (CVA) This  
is the difference between the 
gross cash flow and gross cash 
flow hurdle. It is therefore the 
amount by which the gross cash 
flow exceeds the return and  
reproduction requirements.  
If CVA is positive, the investors’ 
return and reproduction re-
quirements have been satisfied 
and value has been created for 
the company.
cdp is an international, not-for-
profit organization that works 
on behalf of analysts and inves-
tors to promote the transparent 
reporting of greenhouse gas 
emissions and water use (Water 
Disclosure Report) by compa-
nies. CDP publishes two climate 
rankings each year: the Climate 
Disclosure Leadership Index 
(CDLI) rates the extent and qual-
ity of the disclosure of climate-­
relevant data, while the best-­
rated companies are additionally 
listed in the Climate Perfor-
mance Leadership Index (CPLI).
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346
Further Information
Bayer Annual Report 2013
Glossary
Glossary
Cipro™ / Ciprobay™ /  
Ciproxin™ / Baycip™ Drug 
product for the treatment  
of infectious diseases; active  
ingredient: ciprofloxacin 
Contour™ Line of blood glucose 
meters for people with diabetes 
for simple, safe and rapid use  
at home or while traveling;  
includes Contour™ Next,  
Contour™ XT, Contour™ Plus, 
Contour™ Next Link and  
Contour™ Next USB
Core earnings per share (core 
EPS) Core earnings per share 
are calculated by adjusting net 
income for amortization and  
impairment losses/loss reversals 
of intangible assets, impairment 
losses/loss reversals of property, 
plant and equipment, special 
items and the related tax effects 
to obtain the core net income, 
which is then divided by the 
weighted average number of  
issued ordinary shares. Core 
earnings per share are not  
defined in the International Fi-
nancial Reporting Standards.  
By reporting this indicator, the 
company aims to give readers a 
clear picture of the results of 
operations and ensure compa-
rability of data over time.
(Corporate) Compliance  
comprises the observance of 
statutory and company regula-
tions on lawful and responsible 
conduct.
Corporate governance  
comprises the long-term man-
agement and oversight of the 
company in accordance with 
the principles of responsibility 
and transparency. The German 
Corporate Governance Code 
sets out basic principles for the 
management and oversight of 
listed companies. 
Council™ Herbicide; active  
ingredient: triafamone; mainly 
used in rice
Credit default swaps (CDS)  
Credit default swaps are tradable 
insurance contracts used to 
hedge against the default of a 
borrower.
D
Diversity designates the varia-
tion within the workforce in 
terms of gender, origin, nation-
ality, age, religion and physical 
incapacitation.
Drontal™ product line De­
wormers for dogs and cats;  
active ingredients: combinations 
of praziquantel, pyrantel and 
febantel
E
EBIT EBIT comprises earnings 
before financial result and taxes.
Earnings before interest, taxes, 
depreciation and amortization 
(EBITDA) EBIT plus amortization 
and impairment losses on intan-
gible assets and depreciation 
and impairment losses on prop-
erty, plant and equipment, mi-
nus impairment loss reversals. 
EBITDA, EBITDA before special 
items and the EBITDA margin 
before special items are not de-
fined in the International Finan-
cial Reporting Standards. EBIT-
DA before special items is a 
meaningful indicator of operat-
ing performance since it is not 
affected by depreciation, amor-
tization, impairments or special 
items. By reporting this indica-
tor, the company aims to give 
readers a clear picture of the re-
sults of operations and ensure 
comparability of data over time.
Emissions factors Country- or 
production plant-specific factors 
in kg CO2e/MWh for converting 
produced/consumed energy 
(electricity and heat) values into 
greenhouse gas volumes. These 
emissions factors can be based 
on either statistical data (such 
as IEA, WIR, Defra/DECC, etc.) or 
on operator and supplier data, 
should they be available.
EMTN program The multi-cur-
rency European Medium Term 
Notes (EMTN) program is a  
documentation platform that 
enables Bayer to raise capital 
by quickly issuing debt on the 
global capital market. Maturi-
ties, currencies and conditions 
can be very flexibly designed. 
Earnings per share (EPS) EPS is 
calculated by dividing Group 
net income by the weighted  
average number of issued 
shares as defined in IAS 33.
Essure™ Non-surgical perma-
nent birth control method
Eylea™ / Eylia™ is a recombinant 
fusion protein consisting of 
parts of human VEGF receptors 
1 and 2 extracellular domains 
fused to the Fc portion of human 
IgG1 and formulated as an 
iso-osmotic solution for intravit-
real administration. It acts as  
a soluble decoy receptor that 
binds to VEGF-A and placental 
growth factor (PGF) with a high-
er affinity than their natural  
receptors and can therefore in-
hibit the binding and activation 
of these cognate VEGF receptors.
F
FiberMax™ Cotton seed
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347
Further Information
Bayer Annual Report 2013
Glossary
G
Gadavist™ / Gadovist™ Contrast 
agent for magnetic resonance 
imaging of the central nervous 
system, liver and kidneys; active 
ingredient: gadobutrol
GHG Protocol The Greenhouse 
Gas Protocol Corporate Standard 
is an internationally recognized 
standard for the recording 
and reporting of greenhouse 
gas emissions. It covers direct 
(Scope 1) and indirect (Scope 2) 
greenhouse gas emissions relat-
ing to a company’s value-added 
chains, as well as emissions 
resulting from third-party and 
acquired upstream services 
(Scope 3). 
Global commercial paper pro-
gram Commercial paper (CP) 
issued under Bayer’s program 
is a short-term, unsecured debt 
instrument normally issued at  
a discount and redeemed at 
nominal value. It is a flexible 
way of obtaining short-term 
funding on the capital market.
Glucobay™ Drug product for 
the treatment of diabetes;  
active ingredient: acarbose
GlyTol™ Herbicide tolerance 
trait; mainly used in cotton
gri (Global Reporting Initia-
tive) is a charitable organization 
that works on behalf of the dis-
semination and optimization of 
sustainability reporting. The  
GRI guidelines are considered 
the most frequently used and 
internationally most recognized 
standard for sustainability re-
porting. These guidelines are 
evolved in a multi-stakeholder 
process. GRI was established in 
1997 by the Ceres Coalition of 
environmentally responsible 
economies and the United  
Nations Environment Pro-
gramme (UNEP). 
Gross cash flow (GCF) The 
gross cash flow comprises in-
come after income taxes, plus 
income taxes, plus financial re-
sult, minus income taxes paid 
or accrued, plus depreciation, 
amortization and impairment 
losses, minus impairment loss 
reversals, plus/minus changes 
in pension provisions, minus 
gains/plus losses on retirements 
of noncurrent assets, minus 
gains from the remeasurement 
of already held assets in step 
acquisitions. The change in 
pension provisions includes the 
elimination of non-cash compo-
nents of EBIT. It also contains 
benefit payments during the 
year.
Gross cash flow hurdle The 
GCF hurdle is the gross cash 
flow that needs to be generated 
to satisfy investors’ return and 
reproduction requirements.
H
Harmonix™ Insect Control  
Biological household insecticide 
based on pyrethrum, derived 
from the chrysanthemum flower
HDI Hexamethylene diiso­
cyanate, a raw material for  
polyurethane coatings
Hybrid bond A hybrid bond 
is a corporate bond with equi-
ty-equivalent properties, usually 
with either no maturity date or 
a very long maturity. Due to its 
subordination, issuer bankrupt-
cy carries a lower likelihood of 
repayment than a normal bond.
I
Iberogast™ Plant-based com-
bination product with a broad 
spectrum of action in various 
parts of the digestive system
Interface™ Fungicide with 
Stressgard™ Formulation Tech-
nology for professional use on 
turfgrasses
InVigor™ Summer canola seed
K
Kogenate™ Drug product for 
the treatment of hemophilia;  
active ingredient: recombinant 
Factor VIII
L
Laif™ Plant-based medicine to 
treat mild depression; active  
ingredient: St. John’s wort
Levitra™ Drug product for the 
treatment of erectile dysfunction; 
active ingredient: vardenafil
Liberty™ Herbicide; active  
ingredient: glufosinate-ammoni-
um; mainly used in genetically 
modified crops (cotton, canola, 
soybeans and corn)
Life Sciences Field of activities 
comprising particularly agricul-
ture and health care. At Bayer 
this refers to the activities of the 
CropScience and HealthCare 
subgroups. 
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Further Information
Bayer Annual Report 2013
Glossary
Glossary
M
Magnevist™ Contrast agent  
for MRI diagnosis of the central 
nervous system and body; active 
ingredient: gadopentetate dime-
glumine 
Makrolon™ Brand name for 
polycarbonate
Marengo™ Pre-emergent  
herbicide, active ingredient:  
indaziflam; mainly used for  
ornamentals
Maxforce™ Range of bait prod-
ucts against ants and roaches
MDI Diphenylmethane diisocy-
anate, an important raw material 
for rigid polyurethane foam 
used in the thermal insulation 
of buildings and refrigerated 
appliances 
Mirena™ Intrauterine contra-
ceptive; active ingredient:  
levonorgestrel
N
Natria™ Product line in the 
Bayer Garden™ range of  
consumer products; based on 
biological ingredients
Neonicotinoids Chemical class 
of systemic insecticides
Net cash flow Net cash flow  
is the cash flow from operating 
activities as defined in IAS 7.
Nexavar™ Cancer drug to treat 
patients with hepatocellular  
carcinoma, advanced renal cell 
carcinoma or – in the United 
States – advanced differentiated 
thyroid cancer; active ingredient: 
sorafenib
O
One A Day™ Multivitamin 
product
Over the counter (OTC) In the 
health care field, OTC medicines 
are those obtainable without  
a prescription. In finance, OTC 
represents trade between finan-
cial market participants outside 
of an organized exchange. OTC 
transactions are nevertheless 
subject to securities trading 
laws. 
P
Phase I-III studies Phases in 
the development of a drug 
product. The active ingredient 
candidate is tested in healthy 
subjects (with the exception of 
oncology) in Phase I, and in  
sick patients in Phases II and III.  
The studies are subject to strict 
legal requirements and docu-
mentation procedures.
Price/cash flow ratio The price/
cash flow ratio is the ratio of the 
share price to gross cash flow 
per share. It shows how long it 
would take for the company’s 
cash flow to cover the share 
price.
Price/EPS ratio (price/earnings 
ratio) This is the ratio of the 
current share price to earnings 
per share. A high price/EPS ratio 
indicates that the market as-
signs a high value to the stock 
in the expectation of future 
earnings growth.
R
Redoxon™ Vitamin product 
containing vitamin C and zinc
Responsible Care™ initiative 
Voluntary global initiative by 
the chemical industry aimed  
at achieving continuous im-
provement in environmental 
protection, occupational health 
and safety, product steward-
ship, and the safety of sites and 
their immediate surroundings.
Riociguat Active ingredient 
from a new class of vasodilative 
substances; stimulates soluble 
guanylate cyclase (sGC), an en-
zyme. In January, the European 
Committee for Medicinal Prod-
ucts for Human Use (CHMP)  
recommended that riociguat  
be approved to treat chronic 
thromboembolic pulmonary  
hypertension (CTEPH) and pul-
monary arterial hypertension 
(PAH). Riociguat was approved 
in the United States and Japan 
under the trade name Adem-
pas™.
Roundup Ready™ Herbicide 
tolerance trait for crops, devel-
oped by Monsanto; mainly used 
in soybeans, corn, oilseed rape/
canola, cotton and sugar beet
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349
Further Information
Bayer Annual Report 2013
Glossary
	 For explanations of  
further specialist  
terminology, go to:  
www.investor.bayer.com 
> Stock 
> Glossary
S
Seresto™ Flea and tick collar 
for dogs and cats; active ingre-
dients: imidacloprid and flume-
thrin
Sivanto™ Insecticide; active in-
gredient: flupyradifurone; main-
ly used in fruit and vegetables
Specticle™ Herbicide; active in-
gredient: indaziflam; mainly for 
lawn care by professional users
Stivarga™ Drug product for the 
treatment of metastatic colorec-
tal cancer and, in the United 
States, gastrointestinal stromal 
tumors. It is an oral multikinase 
inhibitor that blocks certain  
kinases responsible for tumor 
growth; active ingredient:  
regorafenib 
Supradyn™ Dietary supplement 
(B-group vitamins with niacin, 
vitamin C and iron)
Syndicated credit facility 
Credit line agreed with a group 
of banks. Generally used for ex-
tensive financing requirements, 
such as when making an ac-
quisition, to increase available 
liquidity or as security for the 
issuance of debt instruments. 
The credit facility can be utilized 
and repaid flexibly, either in full 
or in portions, during its term. 
T
Talcid™ Antacid to treat heart-
burn and stomach complaints; 
active ingredient: hydrotalcite
TDI Toluene diisocyanate, an 
important raw material for flexi-
ble polyurethane foam used in 
upholstery, mattresses and car 
seats
TwinLink™ Dual insecticide re-
sistance and herbicide toler-
ance trait; mainly used in cotton
U
Ultravist™ Contrast agent for 
X-ray examinations including 
computed tomography; active 
ingredient: iopromide
ungc (United Nations Global 
Compact) The UN Global Com-
pact is a strategic policy initia-
tive for businesses that are 
committed to aligning their op-
erations and strategies with ten 
universally accepted principles 
in the areas of human rights,  
labor, environment and anti-­
corruption. By doing so, busi-
ness – as a primary driver of 
globalization – can help ensure 
that markets, commerce, tech-
nology and finance advance in 
ways that benefit economies 
and societies everywhere. By 
committing to the UNGC, com-
panies agree to document each 
year their efforts to uphold the 
ten principles.
V
Velum™ / Verango™ Nematicide; 
active ingredient: fluopyram; 
mainly used in fruit and vegeta-
bles
W
Weighted average cost of  
capital (WACC) The weighted 
average cost of capital (WACC) 
represents the return expected 
by investors on the capital  
invested in the company. It is 
computed as a weighted average 
of the cost of equity and debt. 
The cost of equity is derived 
from capital market information 
and represents the return ex-
pected by stockholders, while 
the cost of debt represents the 
conditions at which the company 
can borrow money over the long 
term.
White & Black™ Cough and cold 
medicine
who Class I The World Health 
organization (WHO) divides crop 
protection products into various 
hazard classes. Class I products 
are deemed to be extremely 
hazardous. 
World-scale production facility 
Very large production facility 
that allows substantial econo-
mies of scale
X
Xarelto™ Direct Factor Xa in-
hibitor in tablet form. Xarelto™ 
is approved for the prevention 
and treatment of thrombosis  
in a wide range of venous and 
arterial indications, including 
stroke prevention in patients 
with atrial fibrillation; active  
ingredient; rivaroxaban
Xofigo™ Drug product for the 
treatment of patients with cas-
tration-resistant prostate cancer 
with symptomatic bone metas-
tases and no known visceral 
metastases; active ingredient: 
radium-223 dichloride
Y
YAZ™ / Yasmin™ / Yasminelle™ 
Combined oral contraceptives; 
active ingredients: ethinyl  
estradiol and drospirenone
Z
Zetia™ Cholesterol-lowering 
drug from Merck & Co.,  
co-marketed by Bayer in Japan; 
active ingredient: ezetimib
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350
Further Information
Bayer Annual Report 2013
Reporting Principles
Reporting Principles
This Annual Report provides comprehensive and 
­transparent information on all the topics we believe are 
important for the company and its stakeholders.
The consolidated financial statements of the Bayer 
Group were prepared according to the International 
­Financial Reporting Standards (IFRS) and the applica-
ble provisions of the German Commercial Code. The 
combined management report complies with the Ger-
man Commercial Code and German financial reporting 
standards. The financial statements of Bayer AG were 
prepared according to the requirements of the German 
Commercial Code and Stock Corporation Act. The 
Compensation Report for the Board of Management 
complies with the recommendations of the German 
Corporate Governance Code. The consolidated ­finan- 
cial statements and the combined management report 
are published in line with statutory disclosure require-
ments.
The Bayer Group‘s sustainability reporting is aligned 
to the G3.1 guidelines of the Global Reporting Initiative 
(GRI) and the 10 principles of the U.N. Global Compact 
(UNGC). The GRI has checked and confirmed that level 
A+ has been maintained. A statement to this effect and 
a GRI index listing the corresponding UNGC principles 
can be found on page 344f. A comprehensive overview 
of the GRI indicators and an outline of our progress in 
implementing the 10 UNGC principles (corresponding 
to the Advanced Level) are available online. Our re- 
porting is also aligned to international guidelines and 
recommendations, including those on the definition and 
­selection of non-financial indicators and on reporting.
We follow the OECD guidelines and comply with the ISO 
26000 standard. In selecting and measuring our key data 
we also take into account the recommendations of the 
European Federation of Financial Analysts Societies 
­(EFFAS) in the case of non-financial indicators, and those 
of the Greenhouse Gas Protocol regarding greenhouse 
gas emissions. We also consider the recommendations 
of the World Business Council for Sustainable Develop-
ment (WBCSD) and the European Chemical Industry 
Council (CEFIC). This year we will again submit a declara-
tion of conformity with the German Sustainability Code.
Data collection for financial and  
non-financial indicators
Credible reporting is based on transparency and data 
validity. We collect the data of all relevant organizational 
units and companies worldwide that fall within the  
scope of the Bayer Group’s consolidated financial 
statements. 
All HSE (health, safety and environmental protection) 
performance indicators for the Group are collated in 
our Group-wide site information system (BaySIS). The 
HSE data cover all fully consolidated companies in 
which Bayer owns at least 50% of the shares. The 
­performance indicators of these companies are fully 
consolidated, irrespective of the exact proportion of the 
shares held by Bayer. Data on occupatio  environmental 
incidents are collected at all sites worldwide. Environ-
mentally relevant indicators are measured at all produc-
tion sites. 
We mainly use SAP systems to collect financial data 
worldwide. We use the global HR information system 
and the associated reporting application – the Sustain- 
ability Management Annual Reporting Tool (SMART) – 
to collect HR indicators and social data.
As the indicators in this report are stated in accord- 
ance with commercial rounding principles, totals  
and percentages may not always be exact.
External verification
PricewaterhouseCoopers Aktiengesellschaft Wirt-
schaftsprüfungsgesellschaft has audited the consoli-
dated financial statements of Bayer AG, Leverkusen, 
and the combined management report for the fiscal 
year from January 1, 2013, to December 31, 2013, and 
has issued an unqualified opinion.
All of the online annexes that supplement the manage-
ment report in the augmented online version of the  
Bayer Annual Report 2013 (“Annual Report 2013 – 
­Augmented Version”) for the fiscal year from January 1, 
2013, to December 31, 2013, and the parts of the 
­Annual Report 2013 entitled “Investor Information” and 
“Reporting Principles” have been reviewed by Price­
waterhouseCoopers Aktiengesellschaft Wirtschaftsprü-
fungsgesellschaft on a limited assurance basis.
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351
352
Further Information
Further Information
Bayer Annual Report 2013
Bayer Annual Report 2013
Five-Year Summary
[Table 1.2 (continued)] 
2009
2010
2011
2012
2013
Employees
Personnel expenses (incl. pension plans) (€ million)
7,776
8,099
8,726
9,194
9,430
Employees5 (as of Dec. 31)
111,000
111,400
111,800
110,000
113,200
Percentage of women in senior management
20
21
22
23
25
Number of nationalities in the Group Leadership Circle
22
21
22
23
31
Proportion of employees with health insurance (%)
95
94
94
94
95
Proportion of employees covered by collective agreements 
on pay and conditions (%)
56
55
54
53
55
Safety
Recordable Incident Rate for Bayer employees (RIR)
0.62
0.62
0.56
0.49
0.47
Lost Time Recordable Incident Rate for Bayer employees (LTRIR)
0.40
0.34
0.31
0.27
0.26
Loss of Primary Containment Incident Rate (LoPC-IR)6
 –  
 –  
 –  
0.38
0.35
Number of transport incidents
10
8
7
6
11
Environmental Protection
Direct greenhouse gas emissions  
(CO2 equivalents in million t)7
4.57
4.80
4.23
4.24
4.09
Indirect greenhouse gas emissions  
(CO2 equivalents in million t)7
3.53
3.70
3.92
4.12
4.29
Volatile organic compounds (VOC) (thousand t /a)8
2.59
2.54
2.69
2.60
2.27
Ozone depleting substances (t/a)9
17.45
20.77
16.31
16.28
15.65
Total organic carbon (TOC) (thousand t/a)
1.35
1.42
1.50
1.42
1.53
Total phosphorus in wastewater (thousand t/a)
0.74
0.09
0.08
0.15
0.11
Total nitrogen in wastewater (thousand t/a)
0.64
0.49
0.53
0.70
0.69
Hazardous waste generated (thousand t/a)
375
354
474
603
467
Hazardous waste landfilled (thousand t/a)
89
56
122
175
53
Water use (million m³/a)
407
474
411
384
361
Primary energy consumption (petajoules [1015 joules]/a)
48.12
51.63
50.10
49.05
47.58
Secondary energy consumption (petajoules [1015 joules]/a)
29.20
34.08
34.85
34.14
33.27
Energy efficiency (MWh / t)10
4.09
3.77
3.63
3.50
3.44
2012 figures restated; figures for 2009 – 2011 as last reported 
1	 EBIT = earnings before financial result and taxes
2	 For definition see Combined Management Report, Chapter 16.2  
“Calculation of EBIT(DA) Before Special Items.”
3	 Earnings per share as defined in IAS 33 = net income divided by the 
­average number of shares. For details see Note [16] to the consolidated 
financial statements.
4	 For definition see Combined Management Report, Chapter 16.5  
“Liquidity and Capital Expenditures of the Bayer Group.”
5	 Full-time equivalents
6	 LoPC-IR has been recorded since 2012.
7	 Portfolio-adjusted in accordance with the Greenhouse Gas Protocol
8	 Volatile organic compounds (VOC) excluding methane
9	 Ozone-depleting substances (ODS) in CFC-11 equivalents
10	Energy efficiency: quotient of total energy consumption and manufac-
tured sales volume. For MaterialScience, only manufactured sales vol-
umes that also form the basis for calculating MaterialScience-specific 
emissions are taken into account.
[Table 1.2]
2009
2010
2011
2012
2013
€ million
€ million
€ million
€ million
€ million
Sales
31,168
35,088
36,528
39,741
40,157
Sales outside Germany
86.7%
87.4%
87.3%
88.3%
87.9%
EBIT 1
3,006
2,730
4,149
3,928
4,934
EBIT before special items 2
3,772
4,452
5,025
5,639
5,773
EBITDA2
5,815
6,286
6,918
6,916
7,830
EBITDA before special items 2
6,472
7,101
7,613
8,280
8,401
Income before income taxes
1,870
1,721
3,363
3,176
4,207
Income after income taxes
1,359
1,310
2,472
2,453
3,186
Earnings per share (€) 3
1.70
1.57
2.99
2.91
3.86
Noncurrent assets
34,049
33,188
32,697
32,308
32,289
of which goodwill and other intangible assets
21,546
20,163
19,455
18,757
18,776
of which property, plant and equipment
9,409
9,835
9,823
9,898
10,015
Current assets
16,993
18,318
20,068
19,010
19,028
Inventories
6,091
6,104
6,368
6,991
7,129
Receivables and other current assets
8,177
9,374
11,846
10,321
10,237
Cash and cash equivalents
2,725
2,840
1,770
1,698
1,662
Financial liabilities
12,949
11,833
11,679
9,530
9,031
Noncurrent 
11,460
9,944
7,995
6,962
5,590
Current 
1,489
1,889
3,684
2,568
3,441
Interest expense – net
(548)
(499)
(335)
(252)
(355)
Return on equity
7.7%
6.9%
13.0%
13.0%
16.2%
Gross cash flow 4
4,658
4,771
5,172
4,556
5,832
Capital expenditures (total)
1,669
1,621
1,666
1,929
2,157
Depreciation and amortization
2,660
2,571
2,521
2,641
2,611
Research and development expenses
2,746
3,053
2,932
3,013
3,190
Equity including non-controlling interest (total)
18,951
18,896
19,271
18,551
20,804
Capital stock
2,117
2,117
2,117
2,117
2,117
Reserves
16,834
16,779
17,154
16,434
18,687
Net income
1,359
1,301
2,470
2,403
3,189
Non-controlling interest
54
63
59
100
86
Liabilities (total)
32,091
32,610
33,494
32,767
30,513
Total assets
51,042
51,506
52,765
51,318
51,317
Equity ratio
37.1%
36.7%
36.5%
36.1%
40.5%
Bayer AG
Net income
2,226
1,245
1,125
889
2,498
Allocation to (withdrawal from) retained earnings
1,068
5
(239)
(682)
761
Total dividend payment
1,158
1,240
1,364
1,571
1,737
Dividend per share (€)
1.40
1.50
1.65
1.90
2.10
Bayer Group
» TABLE OF CONTENTS FURTHER INFORMATION
» TABLE OF CONTENTS FURTHER INFORMATION

353
Subsidiary and affiliated companies of the Bayer Group  
as of December 31, 2013
Bayer Annual Report 2013
Company Name
Place of Business
Bayer’s interest
%
Europe
AgrEvo Verwaltungsgesellschaft mbH
Frankfurt am Main, Germany
100
Alcafleu Management GmbH & Co. KG
Schönefeld, Germany
99.9
Aviator Acquisition AS
Oslo, Norway
100
Baulé S.A.S.
Romans-sur-Isère, France
100
Bayer (Schweiz) AG
Zurich, Switzerland
100
Bayer 04 Immobilien GmbH
Leverkusen, Germany
100
Bayer 04 Leverkusen Fußball GmbH
Leverkusen, Germany
100
Bayer A/S
Lyngby, Denmark
100
Bayer AB
Solna, Sweden
100
Bayer Agriculture Limited
Cambridge, U.K.
100
Bayer Altersversorgung GmbH
Leverkusen, Germany
100
Bayer Animal Health GmbH
Leverkusen, Germany
100
Bayer Antwerpen NV
Antwerp, Belgium
100
Bayer AS
Oslo, Norway
100
Bayer Austria Gesellschaft m.b.H.
Vienna, Austria
100
Bayer B.V.
Mijdrecht, Netherlands
100
Bayer Beteiligungsverwaltung Goslar GmbH
Leverkusen, Germany
100
Bayer Bitterfeld GmbH
Bitterfeld-Wolfen, Germany
100
Bayer Bulgaria EOOD
Sofia, Bulgaria
100
Bayer Business Services GmbH
Leverkusen, Germany
100
Bayer Capital Corporation B.V.
Mijdrecht, Netherlands
100
Bayer Chemicals AG
Leverkusen, Germany
100
Bayer Consumer Care AG
Basel, Switzerland
100
Bayer Consumer Care Deutschland GmbH
Berlin, Germany
100
Bayer CropScience (Portugal)-Produtos para a  
Agricultura, Lda
Carnaxide, Portugal
100
Bayer CropScience AG
Monheim am Rhein, Germany
100
Bayer CropScience Beteiligungsgesellschaft mbH
Frankfurt am Main, Germany
100
Bayer CropScience Deutschland GmbH
Langenfeld, Germany
100
Bayer CropScience Holding SA
Lyon, France
100
Bayer CropScience Holdings Limited
Cambridge, U.K.
100
Bayer CropScience Limited
Cambridge, U.K.
100
Bayer CropScience NV
Diegem, Belgium
100
Bayer CropScience S.r.l.
Milan, Italy
100
Bayer CropScience Vermögensverwaltungsgesellschaft mbH
Leverkusen, Germany
100
Bayer CropScience, S.L.
Quart de Poblet, Spain
100
Bayer d.o.o.
Belgrade, Serbia
100
Bayer d.o.o.
Ljubljana, Slovenia
100
Bayer d.o.o.
Zagreb, Croatia
100
Bayer Direct Services GmbH
Leverkusen, Germany
100
Bayer Gastronomie GmbH
Leverkusen, Germany
100
Bayer Gesellschaft für Beteiligungen mbH
Leverkusen, Germany
100
Bayer Global Investments B.V.
Mijdrecht, Netherlands
100
Bayer HealthCare AG
Leverkusen, Germany
100
Subsidiary and affiliated companies of the Bayer 
Group as of December 31, 2013, pursuant to  
Section 313 of the German Commercial Code 
The fully consolidated companies are listed in the following table:
Fully Consolidated Subsidiaries
  [Table 4.22-1]
» TABLE OF CONTENTS FURTHER INFORMATION

354
Subsidiary and affiliated companies of the Bayer Group  
as of December 31, 2013
Bayer Annual Report 2013
Company Name
Place of Business
Bayer’s interest
%
Bayer HealthCare Manufacturing S.r.l.
Milan, Italy
100
Bayer Hellas A.G.
Athens, Greece
100
Bayer Hispania, S.L.
Sant Joan Despi, Spain
100
Bayer Holding France SCS
Lyon, France
100
Bayer Hungária Kft.
Budapest, Hungary
100
Bayer Innovation GmbH
Leverkusen, Germany
100
Bayer Intellectual Property GmbH
Monheim am Rhein, Germany
100
Bayer International SA
Fribourg, Switzerland
100
Bayer Limited
Dublin, Ireland
100
Bayer Ltd.
Kiev, Ukraine
100
Bayer MaterialScience A/S
Otterup, Denmark 
100
Bayer MaterialScience AG
Leverkusen, Germany
100
Bayer MaterialScience B.V.
Foxhol, Netherlands
100
Bayer MaterialScience Brunsbüttel Energie GmbH
Brunsbüttel, Germany
100
Bayer MaterialScience Customer Services GmbH
Leverkusen, Germany
100
Bayer MaterialScience GmbH
Darmstadt, Germany
100
Bayer MaterialScience NV
Tielt, Belgium
100
Bayer MaterialScience Oldenburg GmbH & Co. KG
Oldenburg, Germany
100
Bayer MaterialScience S.p.A.
Milan, Italy
99
Bayer MaterialScience S.r.l.
Milan, Italy
100
Bayer MaterialScience, S.L.
Sant Joan Despi, Spain
100
Bayer Nordic SE
Espoo, Finland
100
Bayer NV
Diegem, Belgium
100
Bayer Oy
Turku, Finland
100
Bayer Pharma AG
Berlin, Germany
100
Bayer Polyols S.N.C.
Puteaux, France
100
Bayer Polyurethanes B.V.
Mijdrecht, Netherlands
100
Bayer Portugal, SA
Carnaxide, Portugal
100
Bayer Public Limited Company
Newbury, U.K.
100
Bayer R&I B.V.
Maastricht, Netherlands
100
Bayer Real Estate GmbH
Leverkusen, Germany
100
Bayer S.A.S.
Lyon, France
100
Bayer S.p.A.
Milan, Italy
100
Bayer s.r.o.
Prague, Czech Republic 
100
Bayer Santé Familiale SAS
Gaillard, France
100
Bayer Santé SAS
Loos, France
100
Bayer SARL
Lyon, France
100
Bayer Schering Pharma AG
Berlin, Germany
100
Bayer Seeds B.V.
Mijdrecht, Netherlands
100
Bayer Sp. z o.o.
Warsaw, Poland
100
Bayer Technology Services GmbH
Leverkusen, Germany
100
Bayer Vital GmbH
Leverkusen, Germany
100
Bayer Weimar GmbH und Co. KG
Weimar, Germany
100
Bayer World Investments B.V.
Mijdrecht, Netherlands
100
Bayer, spol. sr.o.
Bratislava, Slovakia
100
Bayer-Handelsgesellschaft mit beschränkter Haftung
Leverkusen, Germany
100
Berlimed, S.A.
Madrid, Spain
100
Berlis AG
Zurich, Switzerland
100
Biogenetic Technologies B.V.
Rotterdam, Netherlands
100
Chemion Logistik GmbH
Leverkusen, Germany
100
Conceptus SAS
Versailles, France 
100
Currenta GmbH & Co. OHG
Leverkusen, Germany
60
Dritte Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Fully Consolidated Subsidiaries
  [Table 4.22-1 (continued)]
» TABLE OF CONTENTS FURTHER INFORMATION

355
Subsidiary and affiliated companies of the Bayer Group  
as of December 31, 2013
Bayer Annual Report 2013
Company Name
Place of Business
Bayer’s interest
%
Dritte K-W-A Beteiligungsgesellschaft mbH
Leverkusen, Germany
100
Epurex Films GmbH & Co. KG
Bomlitz, Germany
100
Erste Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Erste K-W-A Beteiligungsgesellschaft mbH
Leverkusen, Germany
100
Euroservices Bayer GmbH
Leverkusen, Germany
100
EuroServices Bayer, S.L.
Sant Joan Despi, Spain
100
Fünfte Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Generics Holding GmbH
Leverkusen, Germany
100
GP Grenzach Produktions GmbH
Grenzach-Wyhlen, Germany
100
Hild Samen GmbH
Marbach am Neckar, Germany
100
Intendis GmbH
Berlin, Germany
100
Intendis Manufacturing S.p.A.
Milan, Italy
100
Intraserv GmbH & Co. KG
Schönefeld, Germany
100
Jenapharm GmbH & Co. KG
Jena, Germany
100
KOSINUS Grundstücks-Verwaltungsgesellschaft mbH  
& Co. Gamma OHG
Schönefeld, Germany
100
KVP Pharma+Veterinär Produkte GmbH
Kiel, Germany
100
Marotrast GmbH
Jena, Germany
100
Mediwest Norway AS
Oslo, Norway
100
Medrad Belgium BVBA
Diegem, Belgium
100
Medrad Denmark ApS
Lyngby, Denmark
100
Medrad Europe B.V.
Maastricht, Netherlands
100
Medrad France S.A.R.L.
Rungis, France
100
Medrad Italia S.r.l.
Cava Manara, Italy
100
Medrad Medizinische Systeme GmbH
Leverkusen, Germany
100
Medrad Sweden AB
Mölndal, Sweden
100
Medrad UK Limited
Ely, U.K.
100
MENADIER Heilmittel GmbH
Berlin, Germany
100
Nunhems B.V.
Haelen, Netherlands
100
Nunhems France S.A.R.L.
Soucelles, France
100
Nunhems Hungary Kft.
Szolnok, Hungary
100
Nunhems Italy S.r.l.
St. Agata Bolognes, Italy
100
Nunhems Netherlands B.V.
Haelen, Netherlands
100
Nunhems Poland Sp. z o.o.
Poznan, Poland
100
Nunhems Spain, S.A.
Valencia, Spain
100
Pallas Versicherung AG
Leverkusen, Germany
100
Pandias Re AG
Luxembourg City, Luxembourg
100
PROPHYTA Biologischer Pflanzenschutz GmbH
Malchow, Germany 
100
SC Bayer SRL
Bucharest, Romania
100
Schering Holdings Limited
Newbury, U.K.
100
Schering-Kahlbaum Gesellschaft mit beschränkter Haftung
Berlin, Germany
100
Sechste Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Siebte Bayer VV GmbH
Leverkusen, Germany
100
Steigerwald Arzneimittelwerk GmbH
Darmstadt, Germany
100
TECTRION GmbH
Leverkusen, Germany
100
TOO Bayer KAZ
Astana, Kazakhstan 
100
TravelBoard GmbH
Leverkusen, Germany
100
UAB Bayer
Vilnius, Lithuania
100
Vierte Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
ZAO Bayer
Moscow, Russia
100
Zweite Bayer Real Estate VV GmbH & Co. KG
Schönefeld, Germany
100
Zweite K-W-A Beteiligungsgesellschaft mbH
Leverkusen, Germany
100
Fully Consolidated Subsidiaries
  [Table 4.22-1 (continued)]
» TABLE OF CONTENTS FURTHER INFORMATION

356
Subsidiary and affiliated companies of the Bayer Group  
as of December 31, 2013
Bayer Annual Report 2013
Company Name
Place of Business
Bayer’s interest
%
North America
AgraQuest Holding Inc.
Davis, U.S.A.
100
AgraQuest, Inc.
Davis, U.S.A.
100
Athenix Corp.
Research Triangle Park, U.S.A.
100
Bayer Business and Technology Services LLC
Pittsburgh, U.S.A.
100
Bayer Canadian Holdings Inc.
Toronto, Canada
100
Bayer Corporation
Pittsburgh, U.S.A.
100
Bayer Cotton Seed International Inc.
Research Triangle Park, U.S.A.
51
Bayer CropScience Holding Inc.
Research Triangle Park, U.S.A.
100
Bayer CropScience Holdings Inc.
Calgary, Canada
100
Bayer CropScience Inc.
Calgary, Canada
100
Bayer CropScience Inc.
Research Triangle Park, U.S.A.
100
Bayer CropScience LLC
Research Triangle Park, U.S.A.
100
Bayer CropScience LP
Research Triangle Park, U.S.A.
100
Bayer Essure Inc.
Milpitas, U.S.A.
100
Bayer HealthCare Animal Health Inc.
St. Joseph, U.S.A.
100
Bayer HealthCare LLC
Whippany, U.S.A.
100
Bayer HealthCare Pharmaceuticals Inc.
Pine Brook, U.S.A.
100
Bayer HealthCare Pharmaceuticals LLC
Berkeley, U.S.A.
100
Bayer Inc.
Toronto, Canada
100
Bayer International Trade Services Corporation
Weirton, U.S.A.
100
Bayer MaterialScience LLC
Pittsburgh, U.S.A.
100
Bayer Medical Care Inc.
Indianola, U.S.A.
100
Bayer Overseas Trade Services Corporation
Weirton, U.S.A.
100
Bayer PO LLC
New Martinsville, U.S.A.
100
Bayer Puerto Rico Inc.
San Juan, Puerto Rico
100
Bayer West Coast Corporation
Berkeley, U.S.A.
100
Collateral Therapeutics, Inc.
Richmond, U.S.A.
100
Cooper Land Company of New Jersey, Inc.
Whippany, U.S.A.
100
Guidance Interactive Healthcare, Inc.
Tarrytown, U.S.A.
100
Hornbeck Seed Company, Inc.
Lubbock, U.S.A.
100
iSense Corporation
Wilsonville, U.S.A.
100
iSense Development Corporation
Wilsonville, U.S.A.
100
NippoNex Inc.
Tarrytown, U.S.A.
100
NOR-AM Agro LLC
Whippany, U.S.A.
100
Nunhems Melons, Inc.
Parma, U.S.A.
100
Nunhems USA, Inc.
Morgan Hill, U.S.A.
100
SB Capital Corporation
Pine Brook, U.S.A.
100
Schering Berlin Inc.
Whippany, U.S.A.
100
STWB Inc.
Pittsburgh, U.S.A.
100
Texas Brine Company LLC
Houston, U.S.A.
0*
Asia / Pacific
Bayer (China) Limited
Beijing, China
100
Bayer (Malaysia) Sdn. Bhd.
Petaling Jaya, Malaysia
100
Bayer (Sichuan) Animal Health Co., Ltd.
Chengdu, China
100
Bayer (South East Asia) Pte Ltd.
Singapore, Singapore
100
Bayer Australia Limited
Pymble, Australia
100
Bayer BioScience Pvt. Ltd.
Hyderabad, India
100
Bayer Business Services Philippines, Inc.
Taguig City, Philippines 
100
Bayer Business Services Private Limited
Powai, India
100
Bayer Co. (Malaysia) Sdn Bhd
Petaling Jaya, Malaysia
100
Fully Consolidated Subsidiaries
  [Table 4.22-1 (continued)]
* fully consolidated structured entity according to IFRS 10.B8 in conjunction with B19 (b) and (c) 
» TABLE OF CONTENTS FURTHER INFORMATION

357
Subsidiary and affiliated companies of the Bayer Group  
as of December 31, 2013
Bayer Annual Report 2013
Company Name
Place of Business
Bayer’s interest
%
Bayer CropScience (China) Company Ltd.
Hangzhou, China
100
Bayer CropScience Holdings Pty Ltd.
East Hawthorn, Australia
100
Bayer CropScience K.K.
Tokyo, Japan
100
Bayer CropScience Limited
Mumbai, India
68.9
Bayer CropScience Ltd.
Dhaka, Bangladesh
60
Bayer CropScience Ltd.
Seoul, South Korea
100
Bayer CropScience Pty Limited
East Hawthorn, Australia
100
Bayer CropScience, Inc.
Laguna, Philippines
100
Bayer Far East Service Co. Ltd.
Hong Kong, China
100
Bayer HealthCare Co. Ltd.
Beijing, China
100
Bayer HealthCare Limited
Hong Kong, China
100
Bayer Holding Ltd.
Tokyo, Japan
100
Bayer Jinling Polyurethane Co., Ltd.
Nanjing, China
55
Bayer Korea Ltd.
Seoul, South Korea
100
Bayer MaterialScience (Beijing) Company Limited
Beijing, China
100
Bayer MaterialScience (China) Company Limited
Shanghai, China
100
Bayer MaterialScience (Qingdao) Co. Ltd.
Qingdao, China
100
Bayer MaterialScience (Shanghai) Management Company  
Limited
Shanghai, China
100
Bayer MaterialScience Limited
Hong Kong, China
100
Bayer MaterialScience Ltd.
Gimhae, South Korea
100
Bayer MaterialScience Ltd.
Tokyo, Japan
100
Bayer MaterialScience Private Limited
Mumbai, India
100
Bayer MaterialScience Pty Ltd.
Pymble, Australia
100
Bayer MaterialScience Taiwan Limited
Taipei, Taiwan
95.5
Bayer New Zealand Limited
Auckland, New Zealand
100
Bayer Pakistan (Private) Limited
Karachi, Pakistan
100
Bayer Pharmaceuticals Private Limited
Mumbai, India
100
Bayer Philippines, Inc.
Laguna, Philippines
100
Bayer Taiwan Company Ltd.
Taipei, Taiwan
100
Bayer Technology and Engineering (Shanghai) Company Limited
Shanghai, China
100
Bayer Thai Co., Ltd.
Bangkok, Thailand
100
Bayer TPU (Shenzhen) Co. Ltd.
Shenzhen, China
100
Bayer Vapi Private Limited
Vapi, India
100
Bayer Vietnam Ltd.
Bien Hoa City, Vietnam
100
Bayer Yakuhin, Ltd.
Osaka, Japan
100
Guangzhou Bayer MaterialScience Company Limited
Guangzhou, China
100
Imaxeon Pty. Ltd.
Rydalmere, Australia
100
Medipharm (Pvt) Ltd.
Lahore, Pakistan
100
Medrad Asia Pte. Ltd.
Singapore, Singapore
100
MEDRAD Medical Equipment Trading Company-Beijing
Beijing, China
100
Nihon Medrad K.K.
Osaka, Japan
100
Nunhems Beijing Seeds Co. Ltd.
Beijing, China
95
Nunhems India Private Limited
Hyderabad, India
100
PT. Bayer Indonesia
Jakarta, Indonesia
99.8
PT. Bayer MaterialScience Indonesia
Jakarta, Indonesia
99.9
Sumika Bayer Urethane Co., Ltd.
Osaka, Japan
60
Latin America / Africa / Middle East
AgraQuest de México S.A. de C.V.
Mexico City, Mexico
100
Alimtec S.A.
Santiago, Chile
100
Bayer (Proprietary) Limited
Isando, South Africa
100
Bayer Algerie S.P.A.
Algiers, Algeria
100
Fully Consolidated Subsidiaries
  [Table 4.22-1 (continued)]
» TABLE OF CONTENTS FURTHER INFORMATION

358
Subsidiary and affiliated companies of the Bayer Group  
as of December 31, 2013
Bayer Annual Report 2013
Company Name
Place of Business
Bayer’s interest
%
Bayer Boliviana Ltda.
Santa Cruz De La Sierra, Bolivia
100
Bayer de México, S.A. de C.V.
Mexico City, Mexico
100
Bayer East Africa Ltd.
Nairobi, Kenya
55
Bayer Finance & Portfolio Management S.A.
Santiago, Chile
100
Bayer Finance Ltda.
Santiago, Chile
100
Bayer Israel Ltd.
Hod Hasharon, Israel
100
Bayer Middle East FZE
Dubai, United Arab Emirates 
100
Bayer Pearl Polyurethane Systems FZCO
Dubai, United Arab Emirates 
51
Bayer Pearl Polyurethane Systems LLC
Dubai, United Arab Emirates 
49*
Bayer S.A.
Asunción, Paraguay
100
Bayer S.A.
Bogotá, Colombia
100
Bayer S.A.
Buenos Aires, Argentina
100
Bayer S.A.
Caracas, Venezuela
100
Bayer S.A.
Casablanca, Morocco
100
Bayer S.A.
Colón, Panama
100
Bayer S.A.
Guatemala City, Guatemala
100
Bayer S.A.
Lima, Peru
95.2
Bayer S.A.
Managua, Nicaragua
100
Bayer S.A.
Quito, Ecuador
100
Bayer S.A.
San José, Costa Rica
100
Bayer S.A.
Santiago, Chile
100
Bayer S.A.
Santo Domingo, Dominican Republic
100
Bayer S.A.
São Paulo, Brazil
100
Bayer S.A. de C.V.
Tegucigalpa, Honduras
100
Bayer SA
Montevideo, Uruguay
100
Bayer Türk Kimya Sanayi Limited Sirketi
Istanbul, Turkey
100
Bayer, S.A.
San Salvador, El Salvador
100
Corporación Bonima S.A. de C.V.
Ilopango, El Salvador
99.6
FN Semillas S.A.
Buenos Aires, Argentina
100
Holding Manager S.A.
Buenos Aires, Argentina
100
Mediterranean Seeds Ltd.
Einat, Israel
100
Medrad do Brasil Ltda.
São Paulo, Brazil
100
Medrad Mexicana S. de R.L. de CV
Mexico City, Mexico
100
Nunhems Chile S.A.
Santiago, Chile
100
Nunhems do Brasil Comercio de Sementes Ltda.
Campinas, Brazil
100
Nunhems Mexico S.A. de C.V.
Queretaro, Mexico
100
Nunhems Tohumculuk Anonim Sirketi
Antalya, Turkey
100
Productos Químicos Naturales, S.A. de C.V.
Orizaba, Mexico
100
Schering do Brasil Química e Farmacêutica Ltda.
São Paulo, Brazil
100
Wehrtec Tecnologia Agricola Ltda.
Cristalina, Brazil 
100
*	fully consolidated subsidiary according to IFRS 10.B39 
Fully Consolidated Subsidiaries
  [Table 4.22-1 (continued)]
» TABLE OF CONTENTS FURTHER INFORMATION

359
Subsidiary and affiliated companies of the Bayer Group  
as of December 31, 2013
Bayer Annual Report 2013
Joint Operations
[Table 4.22-2]
Company Name
Place of Business
Bayer’s interest
%
Indurisk Rückversicherung AG
Luxembourg City, Luxembourg
50
Lyondell Bayer Manufacturing Maasvlakte VOF
Rotterdam, Netherlands
50
Associated Companies and Joint Ventures Accounted for Using the Equity Method
[Table 4.22-3]
Company Name
Place of Business
Bayer’s interest
%
Associated companies
Paltough Industries (1998) Ltd.
Kibbutz Ramat Yochanan, Israel
25
PO JV, LP
Wilmington, U.S.A.
39.7
Joint ventures
Bayer IMSA, S.A. de C.V.
Nuevo Leon, Mexico
50
Bayer Zydus Pharma Private Limited
Mumbai, India
50
DIC Bayer Polymer Ltd.
Tokyo, Japan
50
Company Name
Place of Business
Bayer’s interest
%
Europe
Agreva GmbH
Frankfurt am Main, Germany
100
Ausbildungsinitiative Rheinland GmbH
Leverkusen, Germany
100
Baulé UK Limited
Cheadle Hulme, U.K. 
100
Bayer 04 Leverkusen Sportförderung gGmbH
Leverkusen, Germany
100
Bayer 04 Marketing GmbH
Leverkusen, Germany
100
Bayer AEH Limited
Cambridge, U.K. 
100
Bayer AGCO Limited
Cambridge, U.K. 
100
Bayer CropScience Norwich Limited
Cambridge, U.K. 
100
Bayer d.o.o. Sarajevo
Sarajevo, Bosnia and Herzegovina
100
Bayer Healthcare S.r.l.
Milan, Italy
100
Bayer MaterialScience Oldenburg Verwaltungs-GmbH
Oldenburg, Germany
100
Bayer Medical Care B.V.
Maastricht, Netherlands
100
Bayer OÜ
Tallinn, Estonia
100
Bayer Real Estate Waltersdorf Verwaltungs-GmbH
Schönefeld, Germany
100
Bayer UK Limited
Newbury, U.K. 
100
Bayer US IP GmbH
Leverkusen, Germany
100
Bayer Verwaltungsgesellschaft mbH
Weimar, Germany
100
Bayer-Unterstützungskasse GmbH
Leverkusen, Germany
100
Bayhealth Comercialização de Produtos Farmacêuticos  
Unipessoal Lda.
Carnaxide, Portugal
100
The following joint operations were included in the consolidated financial statements in line with Bayer‘s shares 
of their assets, liabilities, revenues and expenses: 
The following associates and joint ventures were accounted for in the consolidated financial statements using ­ 
the equity method: 
The following subsidiaries (including one structured entity) were reflected in the consolidated financial 
­statements at cost due to their immateriality: 
Immaterial Subsidiaries
[Table 4.22-4]
» TABLE OF CONTENTS FURTHER INFORMATION

360
Subsidiary and affiliated companies of the Bayer Group  
as of December 31, 2013
Bayer Annual Report 2013
Company Name
Place of Business
Bayer’s interest
%
Baysalud, S.L.
Barcelona, Spain
100
Berlex – Especialidades Farmacêuticas Lda.
Carnaxide, Portugal
100*
Berlifarma – Especialidades Farmacêuticas, Lda.
Carnaxide, Portugal
100*
Berlimed – Especialidades Farmacêuticas Lda.
Carnaxide, Portugal
100*
Berlipharm B.V.
Weesp, Netherlands
100
CENTROFARMA-Indústria e Comércio de Prod.  
Farmacêuticos, Lda.
Carnaxide, Portugal
100
Chemie-Beteiligungsaktiengesellschaft
Glarus, Switzerland
100
CleanTech NRW GmbH
Leverkusen, Germany
100
Conceptus Medical Limited
Esher, U.K.
100
Currenta Geschäftsführungs-GmbH
Leverkusen, Germany
100
Ehrfeld Mikrotechnik BTS GmbH
Wendelsheim, Germany
100
Epurex Films Geschäftsführungs-GmbH
Bomlitz, Germany 
100
Intendis Derma, S.L.
Sant Joan Despi, Spain
100
Intraserv Verwaltungs-GmbH
Schönefeld, Germany
100
KOSINUS Grundstücks-Verwaltungsgesellschaft mbH
Schönefeld, Germany
100
Lilienthalstraße Nr. 4 GmbH
Schönefeld, Germany
100
Lusal Producão Quimico Farmacêutica Luso-Alema, Lda.
Carnaxide, Portugal
100
Lusalfarma – Especialidades Farmacêuticas Lda.
Carnaxide, Portugal
100*
Medrad France B.V.
Mijdrecht, Netherlands
100
Neunte Bayer VV GmbH
Leverkusen, Germany
100
pbi Home & Garden Limited
Cambridge, U.K. 
100
Radimetrics UK Limited
Kilmarnock, U.K. 
100
Schering Agrochemicals Holdings
Newbury, U.K. 
100
Schering Health Care Limited
Newbury, U.K. 
100
Schering Industrial Products
Newbury, U.K. 
100
SIA Bayer
Riga, Latvia
100
TecArena+ GmbH
Leverkusen, Germany
100
Willmitzer GmbH
Potsdam, Germany
0 
North America
Artificial Muscle, Inc.
Sunnyvale, U.S.A.
100
Baulé Inc.
Allentown, U.S.A.
100
Baulé USA LLC
Coraopolis, U.S.A.
100
Bayer I4 Acqusition Corporation
Wilmington, U.S.A.
100
Berlex Canada, Inc.
Pointe-Claire, Canada
100
BHCP Holdings LLC
Pittsburgh, U.S.A.
100
Delinting and Seed Treating Company
Research Triangle Park, U.S.A.
100
NippoNex Holdings LLC
Tarrytown, U.S.A.
100
The SDI Divestiture Corporation
Pittsburgh, U.S.A.
100
Viterion TeleHealthcare LLC
Tarrytown, U.S.A.
100
Immaterial Subsidiaries
[Table 4.22-4 (continued)]
* including a 10% interest held by a non-consolidated subsidiary
» TABLE OF CONTENTS FURTHER INFORMATION

361
Subsidiary and affiliated companies of the Bayer Group  
as of December 31, 2013
Bayer Annual Report 2013
Company Name
Place of Business
Bayer’s interest
%
Asia / Pacific
Bayer CropScience (Thailand) Company Limited
Bangkok, Thailand
100
Bayer Sheets India Private Limited
Mumbai, India
100
Bomac Animal Health Pty. Limited
Hornsby, Australia
100
Bomac Laboratories Pty. Limited
Hornsby, Australia
100
Chemdyes Pakistan (Private) Limited
Karachi, Pakistan
100
Myanmar Aventis CropScience Ltd.
Yangon, Myanmar
100
Shanghai Baulé Polyurethane Technology Co. Ltd.
Shanghai, China
100
TianJin Greenstone Polymer Technology Co. Ltd.
Tianjin, China
100
Latin America / Africa / Middle East
AgrEvo South Africa (Pty) Ltd.
Isando, South Africa
100
Bayer Distribuidora de Produtos Químicos e Farmacêuticos Ltda.
São Paulo, Brazil
100
Bayer Evde Bakim Hizmetleri Ltd. Sti.
Istanbul, Turkey
100
Bayer Parsian AG
Teheran, Iran
100
Bayer Schering Pharma Mocambique, Lda.
Maputo, Mozambique
100*
Bayer Zimbabwe (Private) Limited
Harare, Simbabwe
100
Comercial Interamericana, S.A.
Guatemala City, Guatemala
100
Conceptus Costa Rica S.R.L.
Heredia, Costa Rica
100
Farmaco Ltda.
São Paulo, Brazil
100
Laboratorio Berlimed S.A.
Santiago, Chile
100
Miles, S.A. Guatemala Branch
Guatemala City, Guatemala
100
Químicas Unidas S.A.
Havanna, Cuba
100
Schering (Pty) Ltd.
Midrand, South Africa
100
Schering Peruana S.A.
Lima, Peru
100
* including a 10% interest held by a non-consolidated subsidiary
Immaterial Subsidiaries
[Table 4.22-4 (continued)]
» TABLE OF CONTENTS FURTHER INFORMATION

362
Subsidiary and affiliated companies of the Bayer Group  
as of December 31, 2013
Bayer Annual Report 2013
Immaterial Associates and Joint Ventures
[Table 4.22-5]
Company Name
Place of Business
Bayer’s interest
 
 
%
 
Europe
Axxam S.p.A.
Milan, Italy
23.2
BaySecur GmbH
Leverkusen, Germany
49
BaySports-Travel GmbH
Leverkusen, Germany
50
BBB Management GmbH Campus Berlin-Buch
Berlin, Germany
20
Disalfarm, S.A.
Barcelona, Spain
33.3
Faserwerke Hüls GmbH
Marl, Germany
50
Healthbox Europe 1 LP
London, U.K.
37
INVITE GmbH
Cologne, Germany
50
PYCO SA
Mont de Marsan, France
47
Sauerstoff- und Stickstoffrohrleitungsgesellschaft mbH
Krefeld, Germany
50
North America
Technology JV, L.P.
Wilmington, U.S.A.
33.3
Asia / Pacific
Cotton Growers Services Pty. Limited
Moree, Australia
50
Latin America / Africa / Middle East
Bayer Middle East Limited Liability Company
Dubai, United Arab Emirates 
49
Coopers Environmental Science (Pty) Ltd.
Pomona Gardens, South Africa
26
Other Interests in Large Limited Liability Companies
[Table 4.22-6]
Company Name
Place of Business
Bayer’s interest
 
 
%
Hokusan Co. Ltd.
Kitahiroshima, Japan
19.8
Instituto Rosenbusch S.A.
Buenos Aires, Argentina
10
PharmLog Pharma Logistik GmbH
Bönen, Germany
16.6
The following associates and joint ventures were accounted for in the consolidated financial statements at ­ 
cost due to their immateriality: 
The Bayer Group held between 5% and 20% of the voting rights of the following “large limited liability 
­companies” as defined in Section 267 Paragraph 3 of the German Commercial Code:
» TABLE OF CONTENTS FURTHER INFORMATION

Publisher
Bayer AG, 51368 Leverkusen,
Germany
Date of publication
Friday, February 28, 2014
Editor
Jörg Schäfer, Tel. +49 214 30 39136
email: joerg.schaefer@bayer.com 
Environment & Sustainability
Dagmar Jost, Tel. +49 214 30 75284
email: dagmar.jost@bayer.com
Investor Relations
Peter Dahlhoff, Tel. +49 214 30 33022
email: peter.dahlhoff@bayer.com
English edition
Currenta GmbH & Co. OHG
Language Service
ISSN 0343 / 1975
New brochure
The Anniversary  
Year 2013 
This publication looks back at  
many emotional and spectacular  
highlights of the activities marking 
Bayer’s 150th anniversary.
You can order the brochure via email 
at SERVICELINE@BAYER.COM or by 
phone at +49 214 30 57546 
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sources and therefore bears the seal of the Forest Stewardship Council® (FSC Mix Credit).  
The inside section was produced using 100% recycled fibers – as guaranteed by the E.U. Ecolabel  
certification (paper reg. no. FR / 011 / 003).
For fast and easy access to our online services, there’s no need to copy down the internet addresses. 
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Forward-Looking Statements 
This Annual Report contains 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 financial 
position, 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.
Legal Notice
The product names designated with ™ are 
brands of the Bayer Group or our distribution 
partners and are registered ­trademarks in  
many countries.
Annual Stockholders’ 
Meeting 2014 
Information available  
at: bayer.com / asm
Other publications 
Overview available at:   
bayer.com / publications
Annual Report online  
Available at:  
bayer.com / ar13
Bayer on the internet: www.bayer.com
» TABLE OF CONTENTS

Financial Calendar
Q1 2014 Interim Report	
April 28, 2014 
Annual Stockholders’ Meeting 2014	
April 29, 2014 
Planned dividend payment date	
April 30, 2014 
Q2 2014 Interim Report	
July 30, 2014 
Q3 2014 Interim Report	
October 30, 2014 
2014 Annual Report	
February 26, 2015 
Q1 2015 Interim Report	
April 30, 2015 
Annual Stockholders’ Meeting 2015	
May 27, 2015
» TABLE OF CONTENTS