Bayer Names Figures Facts 2009 2010
-
Upload
gbiyer1234 -
Category
Documents
-
view
121 -
download
8
Transcript of Bayer Names Figures Facts 2009 2010
Contents Bayer Names | Figures | Facts
Cover pictureBayer chemists Dr. Susanne Roehrig and Dr. Alexander Straub examine the molecular contours of rivaroxaban – the active ingre-dient of the new anticoagulant Xarelto® – using a computer simulation. One of Bayer’s aims in developing this innovative drug is to minimize the risk of thrombosis following orthopedic surgery.
Contents
Credo 2
Organization 4
Sites and Regions 6
Board of Management 8
Supervisory Board, Corporate Governance 10
Business Trends 12
Investor Information 14
Subgroups and Service Companies
Bayer HealthCare 16
Bayer CropScience 20
Bayer MaterialScience 24
Service Companies 28
Research and Development 30
Employees 32
Sustainability and Commitment 34
History 38
Dialogue 42
Masthead 45
Contents Bayer Names | Figures | Facts
2
Working to Create Value through Inno-vation and GrowthBayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materi-als. Our products and services are designed to benefit people and improve their quality of life. At the same time we want to create value through innovation, growth and high earning power.
We are firmly aligned to our mission statement “Bayer: Science For A Better Life” and continue to optimize our port-folio, concentrating our activities in three high-potential, ef-ficient subgroups with largely independent operations: HealthCare, CropScience and MaterialScience. These provide us with access to major global growth markets and are sup-ported by our service companies.
As an inventor company, we plan to continue setting trends in research-intensive areas. Innovation is the foundation for competitiveness and growth, and thus for our company’s suc-cess in the future.
Our expertise and our products are helping to diagnose, al-leviate or cure diseases, improving the quality and adequacy of the global food supply, and contributing significantly to an active, modern lifestyle. Our expertise and innovative capabil-ity also enable us to offer solutions for protecting the climate and addressing the consequences of climate change.
We are committed to the principles of sustainable develop-ment, and to our role as a socially and ethically responsible corporate citizen. For us, there is a clear link between techni-cal and economic expertise and our responsibility to work for the benefit of humankind, become socially involved and make a lasting contribution to sustainable development. At Bayer, we regard economy, ecology and social commitment as ob-jectives of equal rank.
Credo Bayer Names | Figures | Facts
3
We seek to retain society’s confidence through performance, flexibility and open communication as we work in pursuit of our overriding goals: to steadily create corporate value and generate high value-added for the benefit of our stockholders, our employees and the community in every country in which we operate.
www.bayer.com > Bayer Group > Mission Statement
Bayer AG headquarters in Leverkusen
Credo Bayer Names | Figures | Facts
4 Organization Bayer Names | Figures | Facts
Organization
Bayer AG defines common values, goals and strategies for the entire Group. The three subgroups and three service com-panies operate independently, led by the management hold-ing company. The Corporate Center supports the Group Man-agement Board in its task of strategic leadership.
Organization Chart
Bayer AG (holding company)
Group Management Board
Chairman Werner Wenning
Strategy & Human Resources Richard Pott*
Finance Klaus Kühn
Innovation, Technology Wolfgang Plischke & Environment
* Labor Director ** The names “Bayer Schering Pharma” or “Schering” as used in this publication always refer to Bayer Schering
Pharma AG, Berlin, Germany, or its predecessor, Schering AG, Berlin, Germany, respectively.
Corporate Center Departments
Corporate Office Jörg Krell
Communications Michael Schade
Investor Relations Alexander Rosar
Corporate Auditing Rainer Meyer
Corporate Human Resources Jan Peters & Organization
Finance Johannes Dietsch
Corporate Development Matthias Mangold
Law & Patents, Insurance Roland Hartwig
Environment & Sustainability Wolfgang Große Entrup
Group Accounting Ulrich Hauck & Controlling
Regional Coordination Ian Paterson
5Organization Bayer Names | Figures | Facts
Business Areas
Bayer HealthCare
Chairman Arthur J. Higgins
Animal Health Lykele van der Broek
Consumer Care Gary Balkema
Medical Care Sandra E. Peterson
Bayer Schering Pharma** Andreas Fibig
Bayer Schering Pharma Business Units** Gunnar Riemann
Bayer Schering Pharma Regions ** Ulrich Köstlin
Bayer Schering Pharma Global Drug Discovery** Andreas Busch
Bayer Schering Pharma Global Development** Kemal Malik
Central Administration & Organization Werner Baumann*
Product Supply Hartmut Klusik
Bayer CropScience
Chairman Friedrich Berschauer
Portfolio Management Rüdiger Scheitza*
Research Alexander Klausener
Development Franz-Josef Placke
Industrial Operations & QHSE Wolfgang Welter
Business Planning & Administration Dirk Suwelack
Crop Protection Asia Pacific Bernd Naaf
Crop Protection Europe & TAMECIS Jacques du Puy
Crop Protection North America William Buckner
Crop Protection Latin America Marc Reichardt
Environmental Science Pascal Housset
BioScience Joachim Schneider
Bayer MaterialScience
Chairman Patrick Thomas
Administration Axel Steiger-Bagel
Industrial Operations Tony Van Osselaer*
Polycarbonates Günter Hilken
Polyurethanes Peter Vanacker
Coatings, Adhesives, Specialties Joachim Wolff
Region APAC Tim Bielfeldt
Service Areas
Bayer Business Services
Chairman of the Executive Board Daniel Hartert
Member of the Executive Board Norbert Fieseler*
Bayer Technology Services
Managing Director Achim Noack
Currenta
Chairman of the Executive Board Klaus Schäfer
Member of the Executive Board Joachim Waldi*
6 Sites and Regions Bayer Names | Figures | Facts
Sites and Regions
Latin America/Africa/Middle EastSales €4,958 million (+6.4 %)*
Employees 15,300
R+D expenses €36 million
Companies 46**
North AmericaSales €8,026 million (-1.7 %)*
Employees 17,000
R+D expenses €459 million
Companies 45**
* sales by market, percentage change from previous year (as of Dec. 31, 2008)** fully consolidated subsidiaries (as of Dec. 31, 2008)
The Bayer Group is a global enterprise with companies in nearly every country. The map shows some of its principal sites.
7Sites and Regions Bayer Names | Figures | Facts
Sites and Regions
EuropeSales €14,549 million (+1.4 %)*
Employees 55,500
R+D expenses €2,014 million
Companies 167**
Asia/Pacifi cSales €5,385 million, (+3.3 %)*
Employees 20,800
R+D expenses €144 million
Companies 58**
www.bayer.com > Bayer Group > Bayer Worldwide
8
Board of Management of Bayer AG
Werner WenningChairman of the Group Management Board since April 2002. Born in 1946, Werner Wenning joined the company in 1966 as a commercial trainee. He held a number of positions with Bayer in Germany and abroad, serving as managing director of Bayer subsidiar-ies in Peru and Spain and later as Head of the Corporate Planning and Control-ling Division. Wenning was appointed to the Board of Management as Chief Financial Officer in February 1997. He was President of the German Chemical Industry Association from 2005 until 2007 and is currently its Vice Presi-dent.
Board of Management of Bayer AG Bayer Names | Figures | Facts
Dr. Wolfgang PlischkeResponsible for Innovation, Technology and Environment and the Asia/Pacific region. Born in 1951, Wolfgang Plischke studied biology at Hohenheim Univer-sity, Germany. Having gained his Ph.D., Plischke began his career with Bayer in 1980, joining the subsidiary Miles. After holding a number of positions in Ger-many and abroad, he became Head of the Pharmaceuticals Business Group in North America in 2000, and two years later took charge of the Pharmaceuticals Business Group of Bayer AG. Plischke was appointed to the Bayer AG Board of Management in March 2006. Since December 2007, he has been Chairman of the German Association of Research-Based Pharmaceutical Companies.
9
Klaus KühnChief Financial Officer and responsible for the Europe region. Born in 1952, Klaus Kühn studied mathematics and physics at the Technical University of Berlin, Germany, gaining a mathemat-ics degree in 1978. He also studied in the United States, where he obtained a Master of Business Administration. Kühn joined Bayer AG in 1998 as Head of the Finance Section, and shortly af-terwards was made Head of the Group Finance Division. He was appointed to the Bayer AG Board of Management in May 2002.
Board of Management of Bayer AG Bayer Names | Figures | Facts
Dr. Richard PottThe member responsible for Strategy and Human Resources and the Ameri-cas, Africa and Middle East regions, Dr. Richard Pott is also Bayer AG’s Labor Director. Born in 1953, Richard Pott studied physics at the University of Cologne, Germany, where he ob-tained his Ph.D. In 1984 Pott joined the company’s Central Research Division. After holding various positions in the Corporate Staff Division he became Head of the former Specialty Products Business Group in 1999. He was ap-pointed to the Bayer AG Board of Management in May 2002.
10
Supervisory Board, Corporate Governance
The role of Bayer AG’s 20-member Supervisory Board is to oversee and advise the Board of Management. Under the German Codetermination Act, half the members of the Su-pervisory Board are elected by the stockholders, and half by the company’s employees. The Supervisory Board is directly involved in decisions on matters of fundamental importance to the company and confers with the Board of Management on the company’s strategic alignment. It also holds regular discussions with the Board of Management on the company’s business strategy and status of its implementation.
The Supervisory Board has set up four committees – the Pre-sidial Committee, the Audit Committee, the Human Resourc-es Committee and the Nominations Committee – and entrust-ed them with certain tasks in accordance with the German Stock Corporation Act and the German Corporate Governance Code.
Corporate GovernanceBayer has always placed great importance on responsible corporate governance. Last year the company was able to renew its declaration that it is in full compliance with the recommendations of the German Corporate Governance Code.
Supervisory Board, Corporate Governance Bayer Names | Figures | Facts
11
Chairman of the Supervisory Board
Dr. Manfred Schneider
Vice Chairman of the Supervisory Board
Thomas de WinChairman of the Bayer Central Works Council, Leverkusen
Other members of the Supervisory Board
Dr. Paul AchleitnerMember of the Board of Management of Allianz SE, Munich
Willy BeumannChairman of the Works Council of the Wuppertal site of Bayer AG
Dr. Clemens BörsigChairman of the Supervisory Board of Deutsche Bank AG, Frankfurt am Main
Karl-Josef EllrichChairman of the Dormagen Works Council of Bayer AG; Chairman of the Bayer Group Works Council
Dr.-Ing. Thomas FischerChairman of the Bayer Group Managerial Employees’ Committee
Peter HausmannNorth Rhine District Secretary of the German Mining, Chemical and Energy Industrial Union, Düsseldorf
Prof. Dr.-Ing. e. h. Hans-Olaf HenkelHonorary Professor at the University of Mannheim, Berlin
Reiner HoffmannDeputy General Secretary of the European Trade Union Confederation (ETUC), Brussels
Dr. rer. pol. Klaus KleinfeldChief Executive Officer of ALCOA Inc., New York, USA
André KrejcikMember of the Works Council of Bayer Schering Pharma AG
Petra KronenChairwoman of the Uerdingen Works Council of Bayer AG
Dr. rer. nat. Helmut PankeMember of various supervisory boards, Munich
Hubertus SchmoldtChairman of the German Mining, Chemical and Energy Industrial Union, Hannover
Dr.-Ing. Ekkehard D. SchulzChairman of the Executive Board of ThyssenKrupp AG, Duisburg/Essen
Dr. Klaus SturanyMember of various supervisory boards, Essen
Dipl.-Ing. Dr.-Ing. e. h. Jürgen WeberChairman of the Supervisory Board of Deutsche Lufthansa AG, Cologne
Prof. Dr. Dr. h. c. Ernst-Ludwig WinnackerSecretary General of the European Research Council, Brussels
Oliver ZühlkeVice Chairman of the Bayer AG Works Council
Honorary Chairman
Hermann Josef Strenger
Members of the Supervisory Board
www.bayer.com > Bayer Group > Supervisory Board
www.bayer.com > Bayer Group > Corporate Governance
Supervisory Board, Corporate Governance Bayer Names | Figures | Facts
12
Business Trends
In 2008 Bayer had a successful year overall in an increas-ingly difficult economic environment. The Group’s key op-erational performance data showed a slight further improve-ment from the previous year, and earnings targets were achieved.
Group salesSales of the Bayer Group came in at €32,918 million, up 1.6 percent from the prior-year figure of €32,385 million. Ad-justed for currency and portfolio effects, business expanded by 4.4 percent. HealthCare posted a 6.9 percent increase on a currency- and portfolio-adjusted basis. CropScience sales climbed by 13.9 percent. MaterialScience experienced a con-siderable drop in business in the fourth quarter as a result of the financial and economic crisis, causing full-year sales to drop by 4.6 percent.
EarningsGroup ebitda before special items rose by 2.3 percent to a record €6,931 million. With an improvement in the ebitda margin before special items to 21.1 percent, the Group met its profitability target for fiscal 2008. The operating result (ebit) before special items increased by 1.3 percent com-pared with the previous year, to €4,342 million.
Gross cash flow increased by 10.7 percent from the previous year to €5,295 million due to the gratifying business trend at HealthCare and CropScience. Net cash flow declined by 15.7 percent to €3,608 million, mainly due to a significant increase in cash tied up in working capital. Contributing to this increase was a higher level of receivables and inventories at HealthCare and CropScience, which was partly the result of business growth.
Business Trends Bayer Names | Figures | Facts
13
Bayer Group 2007 2008 Change € million € million in %
Sales 32,385 32,918 1.6
EBITDA1 5,866 6,266 6.8
EBITDA before special items 6,777 6,931 2.3
EBIT2 3,154 3,544 12.4
EBIT before special items 4,287 4,342 1.3
Income before income taxes 2,234 2,356 5.5
Net income 4,711 1,719 -63.5
Earnings per share (€)3 5.84 2.22 -62.0
Gross cash flow4 4,784 5,295 10.7
Net cash flow5 4,281 3,608 -15.7
Capital expenditures* 1,891 1,982 4.8
Research and development expenses 2,578 2,653 2.9
Dividend per Bayer AG share (€) 1.35 1.40 3.7
Bayer Group Key Data
Current information on business developments will be found on the Internet at:
www.financialreports.bayer.com
Business Trends Bayer Names | Figures | Facts
Sales by subgroup
Bayer HealthCare46.8 %
Reconciliation4.2 %
Bayer CropScience19.4 %
Bayer MaterialScience29.6 %
* as per segment table in the Annual Report 2008 For notes see page 44
14
Investor Information
Caught up in the global market turbulence, Bayer stock lost 33.6 percent on the year. Including the dividend of €1.35 per share paid in May 2008, its performance amounted to minus 31.9 percent. Despite the drop in the share price, Bayer ranked among the top third of dax 30 stocks in performance terms.
The price initially fell by some 25 percent at the start of the year to €47 at the beginning of March. This was followed by a rally that lasted until mid-September and restored the price to about €57. The collapse of the investment bank Lehman Brothers in mid-September was just one of the factors caus-ing share prices around the world to plummet in the fourth quarter. Amid very high trading volumes, especially in Octo-ber (11.5 million shares per day), Bayer stock fell to a year low of €36.83 on November 21, 2008.
German stock marketLast year saw the second-worst performance by the dax since its introduction on July 1, 1988. The index closed 2008 at 4,810 points, down 40 percent from the end of the previous year. Only in 2002 did it sustain a heavier loss of 44 per-cent.
The downward movement was triggered by the subprime mortgage crisis in the United States, which began in summer 2007. The resulting crisis on the financial markets eventually spread to the real economy, leading to the current global economic downturn. Nearly all dax companies saw double-digit falls in their share prices.
Dividend per shareSubject to the approval of the Annual Stockholders’ Meeting, the dividend will increase by 4 percent to €1.40, giving a total dividend payment of €1,070 million and a dividend yield of 3.4 percent calculated on the 2008 year-end price.
Investor Information Bayer Names | Figures | Facts
15Investor Information Bayer Names | Figures | Facts
Total dividend payment (€ million)
1,100
1,000
900
800
700
600
500
400
300
200
100
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Dividend per share (€)
1.30 1.40 0.90 0.90 0.50 0.55 0.95 1.00 1.35 1.40
Dividend data
Comparative performance of Bayer stock
indexed; 100 = closing price on December 31, 2007
110
100
90
80
70
60
50
08 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
www.investor.bayer.com
Bayer DJ EURO STOXX 50SM DAX
9491,022
657
365402
694764
657
-40,4 %
-31,9 %
-42,3 %
1,0321,070
16 Subgroups | Bayer HealthCare Bayer Names | Figures | Facts
Bayer HealthCare
Bayer HealthCare is among the world’s foremost innovators in the field of pharmaceutical and medical products. This subgroup’s mission is to research, develop, manufacture and market innovative products that improve the health of people and animals throughout the world.
The subgroup has four operating divisions:
Animal Health• (veterinary medicines and grooming products);Bayer Schering Pharma• (prescription medicines);Consumer Care• (over-the-counter medicines and dietary supplements);Medical Care*�• (blood glucose monitoring devices and contrast agent injection systems).
Business developmentIn 2008 Bayer HealthCare raised sales by 4.1 percent to €15.4 billion. ebitda before special items rose by 9.6 percent to €4.2 billion.
Sales of the Bayer Schering Pharma Division increased by 4.3 percent to €10.7 billion. The Consumer Care Division grew sales in 2008 by 5.2 percent to €2.8 billion. Sales of the Diabetes Care Division* advanced by 2.1 percent in 2008, to €970 million. In the Animal Health Division, sales rose by 0.7 percent to €963 million.
* The Diabetes Care Division and the Medrad medical devices business were combined to form the Medical Care Division effective January 1, 2009.
17Subgroups | Bayer HealthCare Bayer Names | Figures | Facts
Arthur Higgins, Chairman of the Board
of Management
Company name Bayer HealthCare AG
Headquarters Leverkusen, Germany
Chairman of the Board of Management Arthur Higgins
Divisions Animal Health Bayer Schering Pharma Consumer Care Diabetes Care*
Sales €15,407 million
EBITDA1 before special items €4,157 million
R&D expenses €1,742 million
Employees 53,100
Corporate Data
Sales € million
2008 15,407
2007 14,807
Number of employees Employees
2008 53,100
2007 51,500
Research and development expenses € million
2008 1,742
2007 1,700
(as of December 31, 2008) For notes see page 44
Current information on business developments will be found on the Internet at
www.financialreports.bayer.com
18 Subgroups | Bayer HealthCare Bayer Names | Figures | Facts
Research and development activitiesResearch and development at Bayer HealthCare focus on identifying and developing new active substances to treat diseases with a high unmet medical need. In 2008 Bayer HealthCare, with r&d spending of €1.7 billion, accounted for 66 percent of all r&d expenditures in the Bayer Group.
The Bayer Schering Pharma* Division carries out research and product development mainly in the fields of Diagnostic Imaging, Cardiology, Oncology and Women’s Healthcare. Topical examples of active ingredients to emerge from phar-maceutical research are:
Xarelto• ®:� Drug product for the prevention and treatment of venous thromboembolism;Nexavar• ®:� Anti-cancer medicine designed to inhibit tumor growth by combining two special mechanisms of action;vegf• Trap-Eye:� protein intended for use in the treatment of eye diseases;Visanne• ®:� Drug to treat endometriosis.
Research and development activities in the Consumer Care Division focus on the identification, development and market introduction of non-prescription products.
Research in the Medical Care Division is directed mainly to-ward the development of user-friendly blood glucose measur-ing devices that cater to the individual needs of people with diabetes. The Division is also investing in technologies to allow continuous blood glucose monitoring and, in the longer term, to eliminate the need for blood sampling.
Research in the Animal Health Division is targeted toward antibiotics, parasiticides and other active ingredients to treat non-infectious conditions such as kidney disease, cardiovas-cular disorders and cancer in companion animals.
* The names “Bayer Schering Pharma” or “Schering” as used in this publication always refer to Bayer Schering Pharma AG, Berlin, Germany, or its predecessor, Schering AG, Berlin, Germany, respectively.
19Subgroups | Bayer HealthCare Bayer Names | Figures | Facts
Adalat®� Drug for the treatment of hypertension
Advantage®� Line of flea control products for dogs and cats
Aspirin®� Pain reliever based on acetylsalicylic acid
Avalox®�/Avelox®� Drug to treat respiratory infections
Betaferon®�/Betaseron®� Specialty medicine to treat multiple sclerosis
Cipro®�/Ciprobay®� Medicine to treat infectious diseases
Contour®� Umbrella brand for blood glucose monitoring systems and services
Kogenate®� Hemophilia treatment
Levitra®� Erectile dysfunction medicine
Mirena®� Hormonal contraceptive
Nexavar®� Drug to treat kidney and liver cancer
YAZ®�/Yasmin®�/Yasminelle®� Hormonal contraceptive
Best-selling products*
www.bayerhealthcare.com
www.investor.bayer.com
* in alphabetical order
Did you know that ...Thomas Mann, winner of the Nobel Prize for Literature, wrote the following succinct entry in his diary on February 25, 1918: “At supper time I drank punch, which warmed my feet, took Aspirin – and I felt better”? Crime author Raymond Chandler and thriller writer Frederick Forsyth also gave supporting roles in their stories to the little white tablet that cel-ebrates its 110th birthday in 2009.
20 Subgroups | Bayer CropScience Bayer Names | Figures | Facts
Bayer CropScience
Bayer CropScience, with its highly effective products, pio-neering innovations and keen customer focus, holds global leadership positions in crop protection and non-agricultural pest control. The company also has major activities in seeds and crop plants with genetically optimized properties.
It is structured into six Business Operations units: four re-gional Crop Protection units plus the Environmental Science and BioScience units.
Business developmentSales of Bayer CropScience rose by a substantial 9.5 percent in 2008, reaching the record level of €6.4 billion. The under-lying conditions on the world agricultural markets were highly favorable overall. Against the background of a steadi-ly expanding global population with increasing nutritional requirements, combined with low inventories worldwide and heightened demand for plants as alternative energy sources, very high prices for major agricultural products – particu-larly in the first half of the year – led to higher investment by farmers in high-quality seed and innovative crop protection products. The subgroup not only increased volumes signifi-cantly but also succeeded in raising prices, especially in its Crop Protection business. The Crop Protection segment boosted sales by 11.7 percent to €5.3 billion. Key growth drivers were the young products based on active ingredients introduced to core markets since 2000. Sales of these prod-ucts climbed by some 36 percent to €1.8 billion.
21Subgroups | Bayer CropScience Bayer Names | Figures | Facts
Friedrich Berschauer, Chairman of the Board
of Management
Company name Bayer CropScience AG
Headquarters Monheim, Germany
Chairman of the Board of Management Friedrich Berschauer
Business groups Crop Protection Environmental Science BioScience
Sales €6,382 million
EBITDA1 before special items €1,603 million
R&D expenses €649 million
Employees 18,300
Corporate Data
Sales € million
2008 6,382
2007 5,826
Number of employees Employees
2008 18,300
2007 17,800
Research and development expenses € million
2008 649
2007 637
(as of December 31, 2008) For notes see page 44
Current information on business developments will be found on the Internet at
www.financialreports.bayer.com
22 Subgroups | Bayer CropScience Bayer Names | Figures | Facts
Im Environmental Science, sales receded in 2008 by 10.9 percent to €591 million, while in BioScience sales rose by 18.3 percent to €452 million.
ebitda before special items for the subgroup advanced by 21.1 percent to €1.6 billion. The significant improvement in profitability was the result of the gratifying business trend.
Research and development activitiesIn 2008, €649 million, or roughly 24 percent of the Bayer Group’s research and development budget, was spent in the CropScience subgroup.
Major areas of focus, apart from conventional crop protection research, include seeds and plant biotechnology. The main aim of research and development work in plant biotechnol-ogy is to improve the agronomic characteristics and quality of crop plants. The technologies employed in this area com-prise all the tools required to improve important crops such as cotton, canola and rice for producers and industry partners – from the identification of a target gene to the development of a plant.
Topical examples of active ingredients to emerge from research at Bayer CropScience are:
spirotetramat (lead brand:� Movento• ®):� systemic insecticide for the control of a wide range of sucking insects;pyrasulfotole (lead brand:� Huskie• ®):� herbicide effective against a large number of broad-leaved weeds;thiencarbazone-methyl (lead brands:� Adengo• ®, Cor-vus®):� active ingredient for weed control in corn and cereals.
23Subgroups | Bayer CropScience Bayer Names | Figures | Facts
Atlantis®� Herbicide
Basta®�/Liberty®�/Rely® Herbicides
Confidor®�/Gaucho®�/Admire®�/Merit®� Insecticides
Decis®�/K-Othrine®� Insecticides
Fandango®� Fungicide
Flint®�/Stratego®�/Sphere®�/Nativo®� Fungicides
Folicur®�/Raxil®� Fungicides
Poncho®� Seed treatment
Proline®�/Input®/Prosaro® Fungicides
Puma®� Herbicide
Best-selling products*
www.bayercropscience.com
www.investor.bayer.com
Did you know that ...trifloxystrobin, a compound that farmers all over the world have been using for years to protect their cereal, vegetable and fruit crops against harmful fungal diseases, also makes the plants more resistant to stress factors such as drought? Field trials show that crops to which this substance is applied give higher yields.
* in alphabetical order
24 Subgroups | Bayer MaterialScience Bayer Names | Figures | Facts
Bayer MaterialScience
Bayer MaterialScience is a renowned supplier of high-perfor-mance materials such as polycarbonates and polyurethanes, and innovative system solutions for a wide range of everyday uses. Products holding leading positions on the world market account for a large proportion of the company’s sales.
The subgroup’s portfolio is divided into three business units Polyurethanes,• Polycarbonates, • Coatings, Adhesives, Specialties,•
and the Industrial Operations area.
Business developmentSales of Bayer MaterialScience subgroup came in at €9.7 bil-lion in 2008, down 6.7 percent from the prior year. Selling price increases were more than offset by a drop in volumes. The global financial and economic crisis impacted this sub-group in nearly all product groups and regions. The Polycar-bonates business unit had sales of €4.9 billion (-6.3 percent), while those of Polyurethanes fell by 15.6 percent to €2.4 bil-lion. Business in the Coatings, Adhesives, Specialties unit was down 0.8 percent to €1.6 billion. Sales of Thermoplastic Poly-urethanes* moved ahead 2.6 percent to €236 million. Sales in Industrial Operations also grew by 15.6 percent to €489 mil-lion.
ebitda before special items for 2008, at €1.1 billion, was below the previous year. Over the year as a whole, price increases, savings from the ongoing restructuring program and further countermeasures adopted only partially offset the negative ef-fects of lower volumes and higher raw material costs.
.
25Subgroups | Bayer MaterialScience Bayer Names | Figures | Facts
Patrick Thomas, Chairman of the Board
of Management
Company name Bayer MaterialScience AG
Headquarters Leverkusen, Germany
Chairman of the Board of Management Patrick Thomas
Business Units Polyurethanes Polycarbonates Coatings, Adhesives, Specialties Thermoplastic Polyurethanes*
Sales €9,738 million
EBITDA1 before special items €1,088 million
R&D expenses €221 million
Employees 15,100
Corporate Data
Sales € million
2008 9,738
2007 10,435
Number of employees Employees
2008 15,100
2007 15,400
Research and development expenses € million
2008 221
2007 209
(as of December 31, 2008) For notes see page 44
Current information on business developments will be found on the Internet at
www.financialreports.bayer.com
* The Thermoplastic Polyurethanes business unit was integrated into the Polyurethanes and Coatings, Adhesives, Specialties business units effective April 1, 2009.
26 Subgroups | Bayer MaterialScience Bayer Names | Figures | Facts
Research and development activitiesIn 2008, Bayer MaterialScience spent €221 million on research and development (not including joint development activities with customers). This subgroup thus accounted for about 8 per-cent of the Bayer Group’s total research and development ex-penses.
In the Polyurethanes; Polycarbonates; and Coatings, Adhesives, Specialties business units, the latest technologies and produc-tion processes are used to develop new products and applica-tions in close cooperation with customers and other external partners.
Product development work in the Polyurethanes business unit is focused on expanding applications for materials and optimiz-ing the properties of polyurethane systems. In the construction industry, for example, polyurethanes serve as the basis for highly efficient insulating materials and thus make an active contribution to climate protection.
Other examples from the company’s materials research in-clude:
holographic data storage media:� • development of data storage media with a capacity of 300 gb per first-genera-tion disc;polyurethane systems:� • new application of a polyure-thane foam system in the production of railroad ballast beds that reduce train noise levels;Functional Films:�• business unit for three-dimensionally formable electroluminescent films (Lyttron©), lcd diffuser films for flat screens etc.
The New Business section of MaterialScience constantly tracks and evaluates new technological and market trends, channeling the most promising ideas into research and development projects in order to create profitable business opportunities for the future or expand existing technology platforms.
27Subgroups | Bayer MaterialScience Bayer Names | Figures | Facts
Bayblend®� Brand name for polymer blends based on polycarbonate and acrylonitrile-butadiene-styrene
Baydur®� Polyurethane integral-skin foam for appliance housings, medical equipment, sports goods, sanitary items and furniture
Bayflex®� Family of elastic polyurethane systems with customizable properties for a range of applications
BaySystems®� Global polyurethane system partners
Baytubes®� Brand name for multi-wall carbon nanotubes
Desmodur®�/Desmophen®� Raw materials for automotive and industrial coatings, anti-corrosion systems and floor coatings
Desmopan®� Thermoplastic polyurethanes for a variety of high-tech applications
Makrolon®� Transparent, impact-resistant polycarbonate for CDs, DVDs, automotive applications, architectural glazing, electrical and electronic applications
Multitec®� Innovative polyurethane spray system for the manufacture of large-area parts
Principal products*
www.bayermaterialscience.com
www.investor.bayer.com
Did you know that ...Baytubes® carbon nanotubes from Bayer MaterialScience are many times stronger than steel but weigh much less? They can be used for the rotor blades of wind turbines, for example, making them considerably lighter and increas-ing their strength.
* in alphabetical order
28
Service Companies
The central service functions for the Bayer subgroups’ operations are organized into three service companies:
Bayer Business ServicesBayer Business Services is the Bayer Group’s international competence center for it-based services. The focus of this company’s offering is on integrated services in the core areas of it infrastructure and applications, procurement and logistics, human resources and management services, and finance and accounting.
Bayer Technology ServicesBayer Technology Services is the global technological back-bone and a major innovation driver for the Bayer Group. Its services comprise the development, planning, construction and optimization of processes and plants. This service com-pany offers fully integrated solutions right through the life cycle of production facilities.
CurrentaCurrenta offers services for the chemical industry including utility supply, waste management, infrastructure, safety, security, analytics and vocational training. This service company, a joint venture between Bayer and lanxess, oper-ates the chempark sites in Leverkusen, Dormagen and Krefeld-Uerdingen, Germany.
Service Companies Bayer Names | Figures | Facts
29Service Companies Bayer Names | Figures | Facts
Daniel Hartert, Chairman of the Executive Board
Company name Bayer Business Services GmbH
Headquarters Leverkusen, Germany
Chairman of the Executive Board Daniel Hartert°
Employees 5,460*
Services IT-based services
Corporate Data
Achim Noack, Managing Director
Company name Bayer Technology Services GmbH
Headquarters Leverkusen, Germany
Managing Director Achim Noack
Employees 2,600**
Services Technology solutions for processes, plants and products
Corporate Data
Klaus Schäfer, Chairman of the Executive Board
Company name Currenta GmbH & Co. OHG
Headquarters Leverkusen, Germany
Chairman of the Executive Board Klaus Schäfer
Employees 5,500***
Services Services for the chemical industry; management and operation of CHEMPARK
Corporate Data
(as of December 31, 2008)
www.currenta.com
(as of December 31, 2008) ° effective January 1, 2009
www.bayerbbs.com
(as of December 31, 2008)
www.bayertechnology.com
* number of employees in full-time equivalents, excluding local services and ex-trainee pool ** number of employees in full-time equivalents *** number of employees in full-time equivalents, including employees of subsidiaries, excluding trainees
30
Research and Development
In 2008 Bayer spent €2.7 billion on research and develop-ment, focusing particularly on the development of new prod-ucts to strengthen the core businesses. To achieve its growth targets, the Group is endeavoring to steadily expand its prod-uct portfolio and optimize its production processes. Research activities are closely aligned to market requirements. Supple-menting the company’s own r&d is an international network of collaborations with leading universities, public-sector re-search institutes and partner companies. By pooling expertise in this way, Bayer aims to rapidly translate new ideas into successful products. These activities are also supported by the systematic advancement of talented scientists and experts in the company’s research and development units.
Research in the three subgroupsOf the Group’s entire r&d expenditures, Bayer HealthCare ac-counted for 66 percent, Bayer CropScience for 24 percent and Bayer MaterialScience for 8 percent. Further information on each subgroup’s r&d activities is provided in the respective chapter of this brochure.
Bayer Technology ServicesAll Bayer subgroups work closely with Bayer Technology Services worldwide on technology solutions, particularly in the fields of process technology, plant engineering, automa-tion and product development. For example, this service com-pany cooperates with MaterialScience in the development of new production processes that make efficient use of energy and raw materials, thereby helping the subgroup to maintain and expand its technological and cost leadership. Centralized development work on technologies relevant to more than one subgroup helps HealthCare and CropScience to shorten de-velopment times for new products. International sourcing of know-how plays a key strategic role in this respect. It involves country-specific expertise in the implementation of capital expenditure projects, global access to innovations and public funding, and the recruiting of top international personnel.
Research and Development Bayer Names | Figures | Facts
31Research and Development Bayer Names | Figures | Facts
Investment in Research and Development by Subgroup (as of December 31, 2008)
Bayer HealthCare66 %
Other2 %
Bayer CropScience24 %
Bayer MaterialScience8 %
Bayer InnovationBayer Innovation investigates and evaluates innovative areas re-lated to the subgroups’ current core activities and develops them into viable new businesses for the Bayer Group. An example is the manufacture of medicines in plants (plant-made pharmaceu-ticals, or pmp). In 2008 a pilot facility was inaugurated to produce clinical trial samples of a vaccine for the therapy of non-Hodg-kin’s lymphoma. Bayer Innovation also has activities in the field of medical technology, with novel concepts under development including dressings made from biodegradable silica gel fibers for the treatment of chronic wounds. The full potential of these tech-nologies is being evaluated in close cooperation with the Bayer subgroups and external partners.
www.bayer.com > Research & Innovation
32
Employees
As of December 31, 2008 the Bayer Group employed 108,600 people worldwide, compared with 106,200 at the end of the previous year. Personnel expenses declined in 2008 by 1.1 percent to €7.5 billion.
Training and developmentThe vocational training of young people represents a sustain-able investment in the company’s future and at the same time forms part of its social responsibility as a major employer. In countries with dual training programs, Bayer offers places on such programs. At the German sites alone, more than 900 young people embarked on vocational training programs in 2008 to prepare for a career. In Mexico more than 80 young-sters entered dual training programs, in Argentina about 30 and in China more than 20.
The Group’s economic success is crucially dependent on a high level of commitment by all employees. It is therefore important to enhance employee skills and performance through continuing education, global personnel development programs and a healthy work environment. Flexible worktime models enable employees to better harmonize professional and personal interests. In November 2008, Bayer celebrated the 20th anniversary of its program to assist and train disad-vantaged youngsters. The company continued this initiative last year, accepting 149 young people with educational defi-cits into a twelve-month program. The company is working with them at five sites in Germany to prepare them for a formal vocational training program. As an inventor company, Bayer relies on the ideas and potential of managerial staff with an academic background. In Germany, for example, some 300 university graduates in various disciplines were hired in 2008. At the international level the number of em-ployees with various academic qualifications joining Bayer during the same period was over 1,000 in the United States, more than 800 in China, nearly 100 in Japan, some 400 in Brazil and about 300 in Mexico.
Employees Bayer Names | Figures | Facts
33Employees Bayer Names | Figures | Facts
Employees by Function* (as of December 31, 2008)
Production49,100
Administration9,200
Marketing38,000
Research12,300
Sharing in the company’s successEnsuring that employees share financially in its success has long been a firm feature of Bayer’s human resources policy. For 2008 Bayer employees received a total of €475 million in variable payments under the Group-wide short-term incentive (sti) pro-gram.
Realigning the human resources functionSince 2006 Bayer has been gradually realigning its human resources function by way of the Group-wide “Transforming Human Resources” project. The goal is to increase the contribu-tion of the human resources function to the success of the busi-ness and enhance the quality and efficiency of the Group-wide human resources processes. In January 2009, Bayer Schering Pharma also aligned its human resources activities to the new structures. In 2008, five central human resources processes were integrated into the new operating model in more than 70 coun-tries and over 160 Group companies according to uniform rules and procedures.
www.mybayerjob.com* employees by region see page 35
34
Sustainability and Commitment
The essence of Bayer’s sustainability concept is to achieve lasting success in its business activities in harmony with so-cial needs and objectives. Sustainability features prominent-ly in the company’s mission statement and its Values and Leadership Principles. This is complemented by a Sustainable Development Policy, a stated position on human rights and a commitment to the principles of the u.n. Global Compact and the Responsible Care Global Charter.
Performance indicatorsPerformance indicators are a key feature of sustainability man-agement. In 2008 Bayer maintained or improved its perfor-mance in terms of most of the indicators (see table). However, there was an increase in major environmental incidents. The Group is analyzing and evaluating each of these incidents in order to take the necessary action. Emissions of volatile organic compounds rose due to an increase in production at one of the Group’s sites in Asia.
Climate protectionBayer places special importance on climate protection. The purpose behind the Group-wide Bayer Climate Program, ini-tiated by the Group Management Board and launched in 2007, is to further reduce greenhouse gas emissions from its production processes and develop new solutions for climate protection and dealing with climate change. Bayer is also pooling its own specific competencies to drive forward this climate protection program and has already initiated ground-breaking “lighthouse” projects:
the EcoCommercial Building – a global concept for a • zero-emissions building in the office and industry sector;the development of stress-tolerant plants;• the Bayer Climate Check for production processes.•
Sustainability and Commitment Bayer Names | Figures | Facts
35
Category Key Performance Indicator 20076 2008
Health, Safety and Environment
Health and safety Industrial injuries to Bayer employees resulting in at least one day’s absence7 2.4 2.2
Reportable industrial injuries to Bayer employees7 3.7 3.6
Major environmental incidents 3 9*
Transportation incidents 10 10
Emissions Direct greenhouse gas emissions (CO2 equivalents in million metric tons)8 4.4 4.0
Indirect greenhouse gas emissions (CO2 equivalents in million metric tons)8 3.7 3.5
Volatile organic compounds (VOC) (thousand metric tons / year) 2.9 3.2
Total phosphorus in waste water (thousand metric tons / year) 1.0 0.8
Total nitrogen in waste water (thousand metric tons / year) 0.7 0.7
Total organic carbon (TOC) (thousand metric tons / year) 1.8 1.6
Waste Hazardous waste generated (million metric tons / year) 0.3 0.4
Hazardous waste landfilled (million metric tons / year) 0.1 0.1
Use of resources Water use (million m3 / d) 1.2 1.2
Energy use (petajoules [1015 joules]) / year) 91.7 88.5
Employees and Society
Diversity and opportunity Percentage of women in senior management 4.3 4.7
Number of nationalities in senior management 16 23
Training and development Training costs in % of personnel expenses 2.0 2.7
Employment Number of employees by region9**
Europe 56,200 55,500
North America 16,800 17,000
Asia / Pacific 18,900 20,800
Latin America / Africa / Middle East 14,300 15,300
Performance Indicators
Sustainability and Commitment Bayer Names | Figures | Facts
* figure in the Annual Report 2008 amended in light of subsequent knowledge ** employees by function see page 33 2008 figures restated; for footnotes see page 44
36
Sustainable investmentFor many years Bayer stock has been included in major indi-ces and represented in investment funds that focus on com-panies with sustainable and responsible corporate policies. The Bayer Group has been featured in the Dow Jones Sustain-ability Index World (djsi World) since 1999. It has also been continuously listed in the ftse4Good index series. In 2007, Bayer was included in the new ftse4Good Environmental Leaders Europe 40 Index. The analysts of the Storebrand Principle Fund rate Bayer among the top companies in its peer group, awarding it the ranking “Best in Class – Environ-mental and Social Performance.” In addition, Bayer has been listed in the French “Advanced Sustainable Performance In-dices” (aspi) Eurozone Index since 2001. In 2008 the Carbon Disclosure Project (cdp), an investors’ organization, again listed Bayer in the Climate Disclosure Leadership Index – the first global climate protection index – as one of the world’s leading companies in the area of climate protection. Bayer is the only European chemical and pharmaceutical company to have been listed in this index four times in succession.
Corporate social responsibilityThroughout the world Bayer supports some 300 social proj-ects in the fields of education, environment, health, sports and culture. In 2008 the Bayer Science & Education Founda-tion provided a total of about €500,000 in funding for 47 science projects in schools near the company’s sites in Germany. In 2008, as part of the Bayer Climate Program, the Foundation presented the new Bayer Climate Award for the first time to emeritus Professor Eberhard Jochem of the Fraunhofer Institute for Systems and Innovation Research in Karlsruhe. In this way Bayer honored the scientist for his groundbreaking contributions to the improvement of energy efficiency, which is essential for reducing greenhouse gas emissions. The Bayer Climate Award is the first international prize for outstanding achievements in fundamental climate science research. In 2008 Bayer and the United Nations En-vironment Programme (unep) again organized around a dozen environmental projects for young people and children within the scope of their global environmental education part-nership.
Sustainability and Commitment Bayer Names | Figures | Facts
37
Responsible Care Global Charter One of the fi rst signatories to the chemical industry’s global charter for sustainable development and Responsible Care
The Global Compact Founding member of the U.N. corporate responsibility initiative for a sustainable world
World Business Council for Sustainable Development Active member since 1997
“econsense” – Forum for Sustainable Development of German Business Founding member of the pan-sectoral initiative for sustainable development
3C: Combat Climate Change Founding member of the global climate protection initiative
Global Business Coalition on HIV / AIDS, Tuberculosis and Malaria Member of the global corporate network for the fi ght against these three epidemic diseases
Selected Memberships
Global Exploration Fund Bayer set up the Global Exploration Fund together with National Geographic, the world’s largest non-profi t scientifi c organization. Since 2007 this fund has supported nine research projects aimed at protecting the quality of drinking water worldwide.
“Making Science Make Sense” In 2008 Denmark joined the list of countries participating in the “Making Science Make Sense” education program. Schoolchildren in a total of eleven countries are now benefi ting from the voluntary commitment of Bayer employees who visit schools to demonstrate the aims and benefi ts of science with the aid of hands-on experiments.
Young Environmental Envoys In 2008 another country – South Africa – was added to the “Young Environmental Envoy” program. A total of 18 countries in Asia, Latin America, Africa and Europe now send delegates on a week-long study trip to Germany at Bayer’s invitation once a year.
Selected Projects
Sustainability and Commitment Bayer Names | Figures | Facts
For more information, go to:
www.sustainability.bayer.com
www.climate.bayer.com
www.csr.bayer.com
38
1863 On August 1, businessman Friedrich Bayer and master dyer Johann Friedrich Weskott establish a dyestuffs factory in Barmen, now part of the city of Wuppertal.
1865 The company founders purchase an interest in a coal tar dye factory in the United States and begin exporting intermediates.
1876 A branch factory is opened in Moscow.
1881 On July 1, the descendants of Bayer and Weskott establish the joint stock company Farben fabriken vorm. Friedr. Bayer & Co.
1884 The chemist Carl Duisberg starts his career at Bayer. Under his leadership, the scientists make pioneering discoveries.
1888 The company establishes a pharmaceutical department.
1891 The Leverkusen site is purchased.
1897 Bayer scientist Dr. Felix Hoffmann succeeds in synthesizing a chemically pure and stable form of acetylsalicylic acid, the active ingredient of Aspirin®.
1899 Aspirin® is registered as a trademark and sets out to become the world’s favorite painkiller.
1912 The company’s headquarters are transferred to Leverkusen.
1925 Farbenfabriken vorm. Friedr. Bayer & Co. merge with other companies to form I.G. Farbenindustrie AG. As Germany’s most important chemical company, I.G. Farbenindustrie also becomes involved in the events of the Third Reich. After the Second World War, the Allies seize and subsequently break up the I.G. Farben.
History
History Bayer Names | Figures | Facts
39
1939 Bayer scientist Gerhard Domagk is awarded the Nobel Prize for Medicine for his discovery of the antibacterial effects of sulfonamides (Prontosil).
1951 Bayer is re-established as Farbenfabriken Bayer AG (changing its name to Bayer AG in 1972).
1973 Ground is broken for the Brunsbüttel production site and six years later, in 1979, for the Agricultural Center (now the corporate headquarters of Bayer CropScience) in Monheim.
1986 Bayer’s entire u.s. activities are consolidated under the management holding company Bayer usa Inc., Pittsburgh.
1991 Bayer’s Communication Center (BayKomm) is inaugurated in Leverkusen.
1994 The first production facility of Bayer Bitterfeld GmbH comes on stream. In the same year, Bayer acquires the North American self-medication business of Sterling Winthrop, at the same time regaining full rights to the Bayer name for all products and the Bayer Cross trademark in the United States and Canada, which had been confiscated after the First World War.
1999 To mark the 100th birthday of Aspirin® on March 6, professional mountaineers wrap Bayer’s former high-rise headquarters building in Leverkusen, transforming it into the world’s biggest Aspirin® pack and earning the company three entries in the Guinness Book of Records.
2000 Acquisition of the polyols business of Lyondell Chemical Company, United States, makes Bayer the world’s biggest producer of raw materials for polyurethanes.
2001 Bayer acquires Aventis CropScience for €7.25 billion, making it a world leader in crop protection. On December 6, the company’s management announces plans to establish independent operating subsidiaries under the umbrella of a management holding company.
2002 Bayer CropScience AG is launched in October as the first legally independent Bayer subgroup.
History Bayer Names | Figures | Facts
40
2003 In February, the World Health Organization (who) includes acetylsalicylic acid, the active ingredient in Aspirin®, in its “List of essential medicines.”
2003 In October, the subgroups Bayer Chemicals AG and Bayer HealthCare AG and the service company Bayer Technology Services GmbH gain legal independence as part of the reorganization of the Bayer Group. The subgroup Bayer MaterialScience AG and the service companies Bayer Business Services GmbH and Bayer Industry Services GmbH & Co. OHG follow in December.
2004 In January the Group’s world-famous trademark, the Bayer Cross, celebrates its centennial.
2004 In June, Bayer becomes the first private-sector partner to the United Nations Environment Pro-gramme (unep) in the area of youth and environment.
2005 In January, Bayer completes the acquisition of the Roche consumer health business, advancing to become one of the world’s top three suppliers of non-prescription medicines.
2005 Lanxess AG is spun off from the Bayer Group on January 28. This company continues Bayer’s chemicals business and parts of its polymers business.
2005 In December, the u.s. Food and Drug Administration approves sorafenib (tradename: Nexavar®), an active ingredient jointly developed by Bayer HealthCare and Onyx Pharmaceuticals Inc., for the treatment of advanced renal cell carcinoma.
2006 In March, Bayer announces a public takeover offer for Schering* AG, Berlin, Germany. In July, Bayer gains control of 92.4 percent of the approximately 191 million outstanding Schering* shares. In December, Schering* AG is officially renamed Bayer Schering Pharma* AG. The company is headquar-tered in Berlin.
2007 In January, Bayer sells the Diagnostics Division of Bayer HealthCare to Siemens AG, Munich, for €4.2 billion.
History Bayer Names | Figures | Facts
41History Bayer Names | Figures | Facts
www.bayer.com > Bayer Group > History
2007 In March it is announced that the BayArena stadium, home of German Bundesliga soccer team Bayer 04 Leverkusen, is to be modernized and enlarged to accommodate a crowd of over 30,000.
2007 In May, Bayer announces that its high-rise former headquarters building is to be converted into one of the world’s largest media facades. Completion is scheduled for 2009.
2007 In August, Bayer hosts the tunza International Youth Conference of the United Nations Environment Programme (unep) in Leverkusen, the first time this youth environmental summit has been held in central Europe. 180 young people from 85 countries debate global environmental issues.
2007 Centennial celebration: in September, the 100th season of the Bayer Cultural Affairs Department gets under way.
2007 November sees the launch of the integrated, Group-wide Bayer Climate Program. The program’s goals include a further reduction in co2 emissions from Bayer’s production facilities.
2008 In June Bayer is presented with the 2008 Environ-mental Award in the category “Environmentally Friendly Technologies” by the Federation of German Industries (bdi). Use of the new oxygen-depolarized cathode technology reduces power consumption and co2 emissions.
2008 The squeeze-out of the minority stockholders of Bayer Schering Pharma* AG is effected in September. At the turn of the year 2008/2009 the pharmaceuti-cals businesses of Bayer and Bayer Schering Pharma* in Germany are combined in a single legal entity.
2008 In October the world’s largest mdi production facility goes on stream in Shanghai.
2008 In November, Bayer and the German Cancer Research Center form a strategic research alliance scheduled to run for an initial period of two years.
* The names “Bayer Schering Pharma” or “Schering” as used in this publication always refer to Bayer Schering Pharma AG, Berlin, Germany, or its predecessor, Schering AG, Berlin, Germany, respectively.
42
Dialogue
Dialogue Bayer Names | Figures | Facts
Bayer places great importance on communication, regarding it as a company’s duty to society and at the same time an essential tool for shaping its public image. Bayer seeks an open dialogue on people’s questions and problems in order to ensure credibility, trust and acceptance.
Print and online publicationsBayer AG issues a range of publications to keep the general public, employees and stockholders abreast of develop-ments:
Annual Report• Stockholders’ Newsletter• Sustainable Development Report• research• (scientific magazine)report • (company magazine)direkt • (newspaper for employees/neighbors)
A comprehensive overview of the Bayer Group and its global activities can also be found on the company’s Internet site at www.bayer.com, which also contains an innovative Podcast Center with a range of audio and video clips. Further informa-tion on the subgroups and service companies is provided on their respective homepages.
BayKommAnother focus of the company’s information offering is the Bayer Communication Center “BayKomm” in Leverkusen, which was opened in 1991. BayKomm features exhibition ar-eas and numerous events devoted to specific subjects. Visitors can learn about Bayer’s activities and acquaint themselves with a variety of scientific topics – from the development of new medicines and the safeguarding of global harvests to modern materials that contribute to climate protection. Also on offer are guided tours to the approximately 300 exhibits, experi-mental lectures and projects for school students.
43Dialogue Bayer Names | Figures | Facts
Bayer AG: Dr. Katrin Schneider, email: [email protected]
Bayer HealthCare: Dr. Markus Pickel, email: [email protected]
Bayer CropScience: Steffen Kurzawa, email: [email protected]
Bayer MaterialScience: Dr. Frank Rothbarth, email: [email protected]
Bayer Business Services: Oliver Günther, email: [email protected]
Bayer Technology Services: Dr. Arnold Rajathurai, email: [email protected]
Currenta: Jürgen Gemke, email: [email protected]
Contact
Homepage www.bayer.com
BayKomm www.baykomm.bayer.com
Annual Report www.annualreport.bayer.com
Stockholders’ Newsletter www.stockholders-newsletter.bayer.com
Sustainable Development Report www.sd.bayer.com
Scientific magazine “research” www.research.bayer.com
Publications www.publications.bayer.com
News releases www.press.bayer.com
Podcast Center www.podcast.bayer.com
To order print publications:
Email [email protected]
Regular mail Please use the attached reply card
Internet addresses
Kaiser-Wilhelm-Allee, 51368 Leverkusen
Opening times for visitors without an appointment: Monday through Friday 12.00 noon to 6.00 p.m. Sunday 12.00 noon to 5.00 p.m. Other times by appointment
BayKomm Service Infoline: Phone +49 214 30 50100
Communication Center “BayKomm”
44
1 EBIT plus amortization of intangible assets and depreciation of property, plant and equipment. EBITDA, EBITDA before special items and EBITDA margin are not defined in the International Financial Reporting Standards and should therefore be regarded only as supplementary information. The company considers EBITDA before special items to be a more suitable indicator of operating performance since it is not affected by depreciation, amortization, write-downs/write-backs or special items. The company also believes that this indicator gives readers a clearer picture of the results of operations and ensures greater comparability of data over time. The underlying EBITDA margin is calculated by dividing underlying EBITDA by sales.
2 EBIT as shown in the income statement
3 Earnings per share as defined in IAS 33 = net income divided by the average number of shares
4 Gross cash flow = income from continuing operations after taxes, plus income taxes, plus/minus non-operating result, minus income taxes paid or accrued, plus depreciation, amortization and write-downs, minus write-backs, plus/minus changes in pension provisions, minus gains/plus losses on retirements of noncurrent assets, plus non-cash effects of the remeasurement of acquired assets. The change in pension provisions includes the elimination of non-cash components of the operating result. It also contains benefit payments during the year.
5 Net cash flow = cash flow from operating activities according to IAS 7
6 excluding Diagnostics, H. C. Starck and Wolff Walsrode
7 number of injuries per million hours worked
8 as per Greenhouse Gas Protocol
9 permanent and temporary employees in full-time equivalents
5
Masthead
Forward-Looking StatementsThis publication 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 future results, financial situation, development or performance of the company and the estimates given here. These factors include those described in Bayer’s published 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.
Important information The names “Bayer Schering Pharma” or “Schering” as used in this publi - cation always refer to Bayer Schering Pharma AG, Berlin, Germany, or its predecessor, Schering AG, Berlin, Germany, respectively.
Published by Bayer AG, Communications, 51368 Leverkusen, Germany
Editor Dr. Katrin Schneider, phone +49 2 14 30 4 88 25 Email: [email protected]
English edition Currenta GmbH & Co. OHG Language Service
Bayer on the Internet www.bayer.com
April 2009
Contents Bayer Names | Figures | Facts 45