The presentation discusses Bayer CropScience's efforts to deliver world-class product supply. It highlights the company's investments of around 2 billion euros from 2011-2016 to expand production capacity and foster future growth. This includes expanding the capacity of top crop protection active ingredients and investing in seeds assets to increase the global footprint. The company aims to maintain cost leadership through continuous improvement efforts and optimizing its global asset network while prioritizing safety excellence across its operations.
2. Forward-Looking Statements
This presentation 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.
3. We have established world-class
Product Supply
High Flexibility
Optimal Capital Cost
Employment Leadership
Safety Supply Reliability
Excellence Excellence
Leadership, Performance & Expertise
Page 3 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
4. We have worked hard on safety excellence
and are aiming to improve it further
0.50
RIR *
0.40
0.30
0.20 0.46 0.44
0.39 0.33 0.33
0.30 0.32 0.26
0.10 0.25
0.14
0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012/08YTD
• Occupational Health & Safety: Global road & driving safety, safety in agricultural
operations, ergonomic risks
• Process & Plant Safety: Specific training for 6,000 employees
• Transport Safety: Transport safety audits, global training programs
* No. of Recordable Incidents per 200,000 worked hours
Page 4 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
5. We are defending our cost
leadership position
Continuously improved CoGS/net sales ratio
∆ = 3.5 pp* ∆ = 1.0 pp
2010 2011 YTD YTD
08/2011 08/2012
We combat inflation by…
• Leveraging our technical expertise
• Fostering continuous improvement culture
• Optimizing our global asset footprint
• Strengthening cooperation with strategic suppliers
Page 5 • Delivering world-class Product Supply at Bayer CropScience • September, 2012 *percentage point
6. We are investing ~ €2 bn in assets
(2011–2016) to foster future growth
~ €0.5 bn
Seeds
~ €0.2 bn
Research &
Development • Breeding Stations
• Greenhouses
~ €1.3 bn • Seed processing
Product Supply • Seeds innovation in
facilities
RTP/USA
• Modernization of ~ € 2 bn
• Capacity expansion chemical research
• Consolidation multi- center in
purpose unit Monheim/Germany
• Advanced process • Building up Biologics
technology in Davis, USA
Page 6 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
7. In particular, we are expanding the capacity
of our top Crop Protection active ingredients
Brands Project Location CAPEX Total
Expansion of Trifloxystrobin capacity Muttenz
Dormagen
Expansion of Prothioconazole capacity
Kansas City
~ €200 m
Expansion of SC Formulation capacity Villefranche
Knapsack
Capacity expansion of Frankfurt
Glufosinate Ammonium
Muskegon
More CAPEX investment planned to further expand our capacity …
Page 7 • Delivering world-class Product Supply at Bayer CropScience • September, 2012
8. We are investing in our Seeds assets
to increase our global footprint
Page 8 • Delivering world-class Product Supply at Bayer CropScience • September, 2012