49308_GB_KFF leaflet _2008-06-30.indd - Bayer CropScience

Key Facts and Figures 2007/2008
Strengthening Crops –
Securing Yield

Contents
03 Introduction
04 Business Performance
06 Crop Protection
08 Environmental Science
10 BioScience
12 Global Organization
13 R&D Facilities
14 Industrial Operations Sites
16 Key Events 2007
18 Executive Committee
Key figures 2007 2007
Sales (€ million) 5,826
EBITDA (€ million) 1,204
EBITDA before special items (€ million) 1,324
EBITDA-margin before special items 22.7 %
EBIT (€ million) 656
Gross cash flow (€ million) 961
Net cash flow (€ million) 1,040
Employees at year end 17,800
R & D investment (€ million) 637
Sales 2007 by Business
Total: € 5,826 million
Crop Protection:
€ 4,781 million
Environmental Science:
€ 663 million
BioScience:
€ 382 million
Sales 2007 by Region*
Total: € 5,826 million
Asia/Pacific:
€ 913 million
North America:
€ 1,332 million
Europe:
€ 2,383 million
Latin America/
Middle East/Africa:
€ 1,198 million
* Split based on definition of Bayer Group reporting

In 2007/2008, agriculture has gained a lot
of public attention: Fundamental agricultural
growth trends arising from factors in cluding
the world’s growing population, chang ing
consumer habits and the drive to exploit new,
renew able sources of energy bring with them
demanding challenges but also offer our
industry significant opportunities.
World population growth continues, while available arable land per
capita is forecast to decrease. The growing affluence of consumers
in emerging countries is boosting demand for high-quality foods and
animal protein, while rising global energy requirements and environmental
concerns mean agricultural crops must now provide food, feed,
fiber as well as alternative energy.
All these factors have led to declining global inventories of many
staple crops and increasing competition for land used for food, feed
and energy crops. It is essential to safeguard and expand the yield
of agricultural crops and assure high quality from harvest to the consumer.
Bayer CropScience is convinced that innovation is key to finding
solutions to the food and energy problems of the future. Modern crop
protection products have already enabled global agri cultural production
to secure harvests and achieve substantial increases in yield.
With one of the most powerful research budgets in our industry, we
will continue to put our innovation focus on novel crop protection
products with new modes of action. At our BioScience unit we also
pay special attention to modern plant-breeding techniques aimed at
developing new varieties with enhanced resistance to environmental
stresses. And we support the search for alternative plant-based
sources of energy.
Parts of plants are extracted so that their genome can be analyzed.
3

Business Performance 2007
Sales at Bayer CropScience rose by 2.2 % in 2007,
to € 5,826 million, or 5.6 % when adjusted for currency
and portfolio changes. EBITDA before special items
grew 10.0 % to € 1,324 million. EBIT before special
items rose 22.6 % to € 786 million and after special
items by 12.3 % to € 656 million.
Sales for the Crop Protection segment came in at € 4,781 million
(+3 %). At € 1,725 million, sales for our Herbicides business unit were
down 1.9 %, though they were up 1.1 % when adjusted for currency
and portfolio changes. Sales in North America declined due to a
reduction in cotton and soybean acreages, though cereal herbicides
grew strongly in Europe, thanks to our young products like Atlantis ®
and Sekator ® .
In the Fungicides business unit, sales grew 5.8 % to € 1,270 million,
or 7.4 % when adjusted for currency and portfolio changes. Mild, wet
weather in much of Europe led to higher sales especially in cereals,
potatoes as well as grapes and our soybean fungicides benefited
from the market recovery in Latin America.
Sales in the Insecticides business, at € 1,181 million, were down
3.1 %, though currency- and portfolio-adjusted sales grew 1.7 %. The
Confidor ® product family performed very well, particularly in Latin
America. Our innovative insecticide Biscaya ® also sold well in Europe.
In the Seed Treatment business unit, sales rose 29.6 % to € 605
million and by 34.9 % adjusted for currency and portfolio changes,
thanks to the positive global performance of our entire product
portfolio. North America saw the strongest gains, with a significant
expansion of corn acreages boosting demand. Global business with
Poncho ® nearly doubled.
In the Environmental Science, BioScience segment, sales fell
1.0 % to € 1,045 million. After currency and portfolio adjustments,
business was up by 2.6 %.
Our Environmental Science business declined by 7.1 % in 2007
to € 663 million. Currency-adjusted sales fell by 2.8 %. Products for
professional users were impacted by strong generic competition and
unfavorable weather conditions, partly offset by sales of home and
garden products for consumers.
BioScience sales rose 11.7 % to € 382 million and by 14.1 % when
adjusted for currency and portfolio changes. Sales of our vegetable
seed products grew and we expanded business with our InVigor ®
brand canola seed and our Arize ® rice seed.
4

Top 10 Products 2007
Active Ingredient* Major Brands Application Sales
(€ million)
Imidacloprid Confidor ® ,
Admire ® ,
Gaucho ® ,
Merit ®
Insecticide,
Seed Treatment,
Environmental
Science
556
Trifloxystrobin Flint ® , Stratego ® ,
Sphere ® Fungicide 243
Glufosinate Basta ® , Liberty ® Herbicide 241
Clothianidin Poncho ® Seed Treatment 237
Tebuconazole Folicur ® , Raxil ® Fungicide,
Seed Treatment
235
Mesosulfuron-methyl Atlantis ® Herbicide 207
Fenoxaprop-P-ethyl Puma ® Herbicide 187
Deltamethrin Decis ® ,
K-Othrine ®
Insecticide,
Environmental
Science
Prothioconazole Proline ® Fungicide 175
Ethofumesate/PMP/DMP Betanal ® Herbicide 127
* Figures are based on active ingredient class. For the sake of clarity only main brands
and applications are listed.
178
The Bayer CropScience performance by Region
2007 was an excellent year for Bayer CropScience in Europe. Sales
grew especially strongly in Central and Eastern Europe. Favorable
weather conditions boosted our herbicide, slug pellet and fungicide
ranges and our Environmental Science business also performed well.
Crop Protection sales in North America fell, primarily due to currency
effects. Increased demand for crops used for biofuels meant
a significant expansion in the corn area planted in North America,
leading to record sales in seed treatment. However, as the corn
acreage expanded at the expense of cotton and soybean areas
planted, there was a drop in product usage associated with these
crops. BioScience posted strong growth in cotton and canola, but
in Environmental Science, products for professional users were
impacted by competition from generics.
Performance was positive in Latin America/Africa/MiddleEast,
especially in Brazil and Argentina, driven by high commodity prices
and a positive market environment. Sales also increased in Mexico,
Peru and Ecuador, and we maintained our market position on a less
favorable market environment in Colombia.
Sales in Asia Pacific grew slightly above market levels. Performance
was especially strong in China and India. Continued drought
in Australia led to a sharp decline of the market overall. The business
environment in Japan was also difficult, but sales rose in South East
Asia, with the Philippines in particular exceeding expectations.
5

Crop Protection
Our Crop Protection business is based on an extensive
and well-balanced portfolio of high-performance
products.
Our crop protection business as a whole benefited from the positive
conditions on the world’s agricultural markets, including higher prices
for agricultural commodities, increased cultivation of crops for biofuel
production and improved market conditions in Latin America. Our
young and innovative products performed especially well, with sales
of active ingredients introduced in core markets since 2000 up a third
on 2006, to nearly € 1.4 billion.
The exciting pipeline resulting from our excellence in innovation is
supposed to further strengthen our Crop Protection portfolio in order
to meet a whole range of market needs going forward. Indeed, with
our current launch program comprising of 26 new active ingredients
to be launched between 2000 and 2011, we expect to achieve a combined
peak sales of € 2 billion.
Four innovative compounds received their first market approval in
2007: insecticides flubendiamide and spirotetramat, and herbicides
tembotrione and pyrasulfotole. Flubendiamide belongs to a new
chemical class of substances, offering protection against major
Lepidoptera species, while spirotetramat is our third compound from
the ketoenols family, controlling sucking insects. Our new cereal herbicide
pyrasulfotole offers farmers reliable control of a large number
of broadleaved weeds and the new active ingredient tembotrione can
be used in corn against a broad spectrum of weeds, including resistant
varieties.
Our eight Integrated Crop Platforms reflect our customers’ integrated
approach to their crops, and ensure our extensive portfolio of solutions
is fully in line with their needs. Teams with expertise in all aspects
of these crops – Cereals, Corn & Soybean, Oilseeds, Fruit, Rice, Cotton,
Vegetables and Sugar Crops – work together to analyze the opportunities
for each crop. Along with our dedicated country teams, they ensure
our products and services are well adapted to the specific requirements
of each local market.
Crop Protection Sales 2007 by Business (€ million)
Total: € 4,781
Seed Treatment: 605
Herbicides: 1,725
Insecticides: 1,181
Fungicides: 1,270
6

There is a steadily
increasing demand for
high-quality food. Crop
protection products are
playing an essential role
in securing the harvest.
The following new active ingredients received their initial marketing
approval in first countries in 2007:
Trademark
New active
ingredient
Application
Status
Belt ® Flubendiamide Insecticide Market introduction 2007
Movento ® Spirotetramat Insecticide Market introduction
expected in 2008
Laudis ® Tembotrione Herbicide Market introduction 2007
Huskie ® Pyrasulfotole Herbicide Market introduction
expected in 2008
Crop Protection Sales 2007 by Region (€ million)
Total: € 4,781
North America: 912
Europe: 2,035
Asia/Pacific: 769
Latin America/Africa/
Middle East: 1,065
7

Environmental Science
Our Environmental Science business operations
offer solutions that balance effective control of pest
and weeds with respect for both the home and the
wider environment.
Our innovative solutions, expertise and proximity to our customers
ensure we remain closely in step with key market trends, which reflect
the growing importance of health, hygiene and a sound environment.
We have recognized expertise in adapting active ingredients from
Crop Protection to specific Environmental Science formulations, serving
two different markets with specific customers and separate distribution
channels. Our Professional Products are developed spe cifically for
professional weed and pest control customers, while our Consumer
Products allow home owners to tend and enjoy their living space.
Environmental Science is the only agrochemicals player present in
both the Professional and Consumer markets. Innovation also plays a
key role in our Environmental Science business. In 2007, sales of our
products for professional users were impacted by strong generic competition
and unfavorable weather conditions, although this was partly
offset by higher sales of home and garden products for consumers.
Among the successful new products for professionals introduced in
2007 were Destiny ® a herbicide for the golf market in Japan, Exemptor ® ,
an insecticide launched in the UK and a new formulation of our cockroach
bait Maxforce ® Prime in Europe. In the Consumer segment,
launches included new herbicide and insecticide formulations in Europe
and new products for tree and shrub care and Do-it-yourself termite
control in the USA.
Professional Products
Our Professional Products business
unit provides an extensive portfolio
of solutions for professional weed
and pest control customers in three
main market segments:
the Green Industry, for use in fields
such as parks, golf courses, forestry
and industrial uses such as railways
and at airports.
Professional Pest Management,
for control of insects, rodents or
termites which pose a health hazard,
are a nuisance or cause damage
to property.
Vector Control, combating insects,
such as mosquitoes, which act as
vectors, transmitting many diseases
including malaria and dengue fever.
8

Our Environmental Science unit
offers a comprehen sive range of
solutions supported by strong
product innovations.
Consumer Products
Our Consumer Products business
unit offers reliable pest and weed
control products for lawn and garden
use, backed by the reputation
of the Bayer brand. We also sell our
active ingredients to other Home
and Garden marketers. Aimed particularly
at keen gardeners and
home owners, our trusted umbrella
brands Bayer Advanced in the
USA and Bayer Garden in Europe,
offer an extensive range of products
based on Bayer CropScience
active ingredients.
9

BioScience
Our BioScience business operations unit is a global
player in the research, development and marketing
of quality commercial seeds & traits.
Using modern plant breeding techniques and plant biotechnology, we
focus on improving seeds in order to enhance yields, stress tolerance
and the quality of crops and ultimate product characteristics. Bayer
CropScience sees a great long-term potential in its seeds & traits
business and has stepped up its commitment with the aim of expanding
BioScience sales to about one billion euros by 2015. We aim to
further grow business in our core crops – cotton, oilseeds, rice and
vegetables – and to further explore the potential of certain new crops
including soybeans and corn for our proprietary traits. We are also
forging new partnerships in the field of qualitative plant traits with
leading players in the food and processing industry for mutual downstream
value creation and consumer benefits.
Our InVigor ® hybrid canola seeds, FiberMax ® cotton seeds, Arize ®
hybrid rice seeds and Nunhems ® vegetable seed businesses continued
to be the main drivers of our strong business performance in
2007. In 2007, we strengthened our cotton activities with the acquisition
of the US cotton seed producer Stoneville ® , creating a more
comprehensive offering for customers in the United States. 2007 also
saw significant expansion for our hybrid rice business in Asia and
Latin America, with the launch of Arize hybrid rice in Pakistan, the
North of Vietnam, Bangladesh and Brazil, and for our hybrid canola
seed, InVigor which continued to lead in the Canadian market. The
Nunhems vegetable seed portfolio was strengthened through several
partnerships and acquisitions, while the new vegetable varieties
launched included Intense ® , a full-flesh tomato that does not lose
its juice when cut.
10
Agricultural Crops
We hold strong competitive
po sitions in the high value cotton,
hybrid canola and hybrid rice seed
markets. We target to improve the
agronomic performance of these
crops through conventional plant
breeding and plant biotechnology
innovations. We aim to market our
technologies in our own seeds and
– with the help of partners – in
other crops.
First launched in the US in 1999,
our Fibermax ® cotton seed varieties
are well adapted to the needs
of each market, offering superior
lint yield and quality, excellent
length, strength, fineness and fiber
uniformity. Select varieties include
leading technologies for insect
and herbicide resistance.
With the acquisition of Stoneville
in 2007, we were able to further

Resistant to stress:
Michael Metzlaff checks the
growth progress of plants.
strengthen our position in the US
cotton market, gaining no. 1 market
position.
Our InVigor ® canola hybrids are
recognized for their vigorous growth,
high yield potential and the ability
to withstand environmental stresses
specific to the varied Canadian
and northern US growing conditions.
They also offer effective
weed control through built-in tolerance
to Liberty ® herbicide.
Our Arize ® hybrid rice seeds
suit the varied agro-climatic conditions
and consumer preferences
of Asia and Latin America, and
offer excellent grain and seed quality.
With higher yields and lower
seed planting density requirements
Arize hybrid rice offers farmers
higher return on investment and
may contribute to meet the needs
of a growing world population.
Vegetable Seeds
Our vegetable seeds unit Nunhems
is a global specialist in researching,
breeding, processing and marketing
high quality vegetable seeds
and services. Profes sional growers,
plant pro pagators, seed dealers
and the fresh produce and food
processing industries worldwide
can choose from our range of 2,500
varieties in 28 species. Our main
crops include carrots, onions, tomatoes,
leeks and melons. Our recognized
customer focus is based on
a unique network of dedicated research,
breeding and sales teams
in over 35 countries, working closely
with growers, shippers and processors
in the world’s main vegetable
production regions.
11

Global Organization
Bayer CropScience has a truly international team of about 17,800
employees, based in over 120 countries. Their cultural diversity is
an essential factor in our success as a leading global player, giving
us an understanding both of local needs and the global picture. Our
Crop Protection business operations structure, with its four regions –
North America, Latin America, Europe & TAMECIS* and Asia/Pacific
ensures decision-making is close to the market.
Main Sites
Country Location Activities
Germany
France
Singapore
USA
Brazil
Monheim
Bayer CropScience AG
Alfred-Nobel-Str. 50
40789 Monheim am Rhein
Lyon
Bayer CropScience SA
16 rue Jean Marie Leclair
CP 106
69266 Lyon Cedex 09
Singapore
Bayer South East Asia Pte Ltd.
63 Chulia Street
OCBC Centre East 14 th Floor
Singapore 049514
North Carolina
Bayer CropScience LP
2 T.W. Alexander Drive
P.O. Box 12014
Research Triangle Park
RTP, North Carolina 27709
São Paulo
Bayer CropScience Ltda
Rua Verbo Divino
1207 Bloco B3°
São Paulo – SP – CEP
04719-002
Global Bayer CropScience
headquarters,
Headquarters of global Crop
Protection business
Headquarters of Crop Protection
region Europe/TAMECIS*,
Headquarters of global
Environmental Science and
BioScience businesses
Headquarters of Crop Protection
region Asia/Pacific
Headquarters of Crop Protection
region North America
Headquarters of Crop Protection
region Latin America
*TAMECIS = Turkey, Africa, Middle East and Commonwealth of Independent States
Employees by Region in 2007**
Total: 17,800
Asia/Pacifi c: 4,350
Europe: 8,350
North America: 2,850
Latin America/Africa/
Middle East: 2,250
** Split based on Bayer Group reporting definition
12

R&D Facilities
Bayer CropScience is a firmly science-based company, committed
to building growth on innovation. Our current high performance products
and promising pipeline are based on that commitment. Our team
of 3,700 scientific staff is supported by a considerable R&D budget,
and works closely with external partners offering a wide range of
expertise. Our global network of state of the art R&D facilities allows
us to explore all innovation opportunities with the ultimate goal of
offering the right solutions for our customers’ needs. A large number
of field testing facilities across multiple regions allows us to evaluate
future products under local climatic conditions and in different crops.
Major R&D Sites
Country Location Activities
Belgium Gent Research
BioScience
France Lyon Research & Development
Fungicides
France Sophia Development
Germany Frankfurt Research & Development
Herbicides
Germany Monheim Research & Development
Insecticides, Fungicides
Germany Potsdam Research
BioScience
Japan Yuki Research & Development
Insecticides
Netherlands Haelen Research & Development
BioScience
USA Stilwell Development
13

Industrial Operations Sites
Production at Bayer CropScience spans a network of about 40 facilities
worldwide, including the company’s main active ingredient and
formulation production sites in Europe, the US and India. This highly
cost-effective global production network ensures a rapid response
to the needs of local markets.
North America
Latin America/Africa/Middle East
USA
Canada
Institute
Kansas City
Muskegon
Pasadena
St. Louis
Woodbine
Regina
Argentina
Brazil
Colombia
Guatemala
Mexico
Zarate
Belford Roxo
Baranquilla
Amatitlan
St. Clara
South Africa
Nigel
Turkey
Gebze
14

Europe
Asia Pacific
France
Germany
Spain
Gaillon
Marle
Roussillon
Villefranche
Dormagen
Frankfurt
Knapsack
Wolfenbüttel
Quart
Australia
Bangladesh
China
India
Kwinana
Pinkenba
Wyong
Tongi
Hangzhou
Ankleshwar
Himatnagar
Vapi
Switzerland
Muttenz
Indonesia
Surabaya
UK
Norwich
Widnes
Japan
Pakistan
Hofu
Karachi
Philippines
Canlubang
South Korea
Daejong
Thailand
Bangpoo
Vietnam
Bien Hoa
15

Key Events 2007
The acquisition of a US cotton seed company, the launch of a new
hybrid canola variety, our annual Press Conference at headquarters
in Monheim, Germany, and a workshop on climate change and crop
protection – these are some of the highlights that shaped life at
Bayer CropScience in 2007.
June 19 2007
Bayer CropScience completed
the acquisition of Stoneville
Pedigreed Seed Company, a
leading US provider of cotton
seeds. The acquisition further
enhanced our fast-growing cotton
seed business and helped
make us number 1 on this mar -
ket in the USA.
September 6 2007
The Bayer CropScience Annual Press Conference, held in Monheim,
focused on our company’s answers to the challenges of the new
agricultural economy. As CEO Friedrich Berschauer told international
journalists, these include continuing Research & Development on
crop protection products with new modes of action, and investigating
modern plant-breeding techniques.
16

July 12 2007
Bayer CropScience announced the launch in Canada of a new
hybrid canola line, InVigor ® Health. Cargill, a global agri-foods
company, produces canola oil from InVigor ® Health hybrids. Its
high-oleic content designed means it is well adapted to the needs
of food companies, with consumers increasingly demanding oils
low in saturated and trans fats.
November 19 2007
Bayer CropScience held a workshop at the “Bayer Climate Program”
conference, initiated by Bayer AG, to highlight our contribution to
meeting the challenge of climate change. Presentations explained
how crop protection products and genetic research can help enhance
stress tolerance in plants and looked at the potential of plants including
canola and jatropha as biofuels.
17

Executive Committee
The structure of the Bayer CropScience Executive Committee
reflects our commitment to constantly optimize our organization,
capturing potential synergies and increasing our competitiveness.
The Executive Committee is made up of the CEO and the Heads
of the five Global Functions: Research, Development, Industrial
Opera tions, Business Planning & Administration and Port folio
Management, as well as the Heads of the six business operations:
BioScience, Environmental Science and our four regions.
Prof. Dr. Dr. Friedrich Berschauer
Chairman of the Board
of Management
Business Operations, Research,
Development, Communications,
Human Resources
Dr. Rüdiger Scheitza
Member of the Board
of Management
Head of Portfolio Management,
Labor Director
Dr. Alexander Klausener
Head of Research
Dr. Franz-Josef Placke
Head of Development
Jacques Du Puy
Head of Crop Protection
Europe & TAMECIS
William Buckner
Head of Crop Protection
North America
18

Dr. Wolfgang Welter
Member of the Board
of Management
Head of Industrial Operations &
QHSE
Dr. Dirk Suwelack
Member of the Board
of Management
Head of Business Planning &
Administration
Dr. Pascal Housset
Head of Environmental Science
Dr. Joachim Schneider
Head of BioScience
Marc Reichardt
Head of Crop Protection
Latin America
Bernd Naaf
Head of Crop Protection
Asia/Pacific
19

Publisher:
Bayer CropScience AG
Corporate Communications
Alfred Nobel Str. 50
40789 Monheim am Rhein
Germany
Phone: +49 (0) 21 73 / 38 - 30 34
Email: info@bayercropscience.com
www.bayercropscience.com
Forward-Looking Statements
This brochure may contain forward-looking statements based on current assumptions and
forecasts made by Bayer Group or subgroup management. Various known and unknown risks,
uncertainties and other factors could lead to material differences between the actual future
results, financial situation, development or performance of the company and the estimates given
here. These factors include those discussed in Bayer’s public reports which are available on the
Bayer website at www.bayer.com. The company assumes no liability whatsoever to update
these forward-looking statements or to conform them to future events or developments.
Photo credits: Bayer CropScience AG, Christian Schlüter