Forward Looking Statements. Spring Investor Conference Bayer Group March 19, 2004

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1 Spring Investor Conference Bayer Group March 19, 2004 Jochen Wulff Chief Executive Officer (CEO) Bayer CropScience Forward Looking Statements This presentation contains forward-looking statements based on current assumptions and forecasts made by Bayer CropScience AG 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 Bayer CropScience AG or our parent company, Bayer AG, and the estimates given here. These factors include those discussed in Bayer AG's public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including Bayer AG's Form 20-F). Neither Bayer AG nor Bayer CropScience AG assumes any liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 2

2 Significant Progress in 2003 Successful Management of Integration Maintained Business Momentum Gained Market Share Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 3 Development of Global Markets World Market Development 2003*: In US-$ + 5% In - 12% Strong Euro Impact on EU-based Companies Upswing of Farm Economy due to Recovery of Commodity Prices & US Farm Bill Drought in Europe resulted in high Channel Inventories NAFTA Market benefited from a positive Cereals Herbicides and Insecticides Campaign Brazil recovering from economical Crisis and benefiting from reduced Channel Inventories in 2002 Japanese Market suffers due to declining Rice Acreage and strong Competition * Source: Cropnosis Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 4

3 Recovery of Crop Commodity Prices in Key Crops In US-$ / ton Soybean Rice Wheat 100 Corn 50 Cotton In US-Cents / lb 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Source: FAO, March 2004 Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 5 Crop Science Business Environment 2003 (in Million) Change to 2002* (-11 %) (-2 %) (-10 %) (-9 %) (+8 %) (-8 %) (+28 %) Conventional Crop Protection Biotech & Seeds (+11 %) (-13 %) * Bayer CropScience Sales 2002 pro-forma, portfolio adjusted Exchange Rate: 1 = 2002: US-$; 2003: US-$ Source: Cropnosis, Company Reports, Bayer CropScience Business Intelligence, March 2004 Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 6

4 Bayer CropScience Gained Market Share in 2003 In Bn. In Bn. $ % % % % Pro-Forma Pro-Forma 2003 Agrochemical Market excl. Biotech / Seeds Bayer CropScience Sales Source: Cropnosis Fcst. November 2003 Sales pro-forma Portfolio adjusted Exchange Rate: 1 = US $ in 2002; US-$ 1.13 in 2003 Figures Rounded Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 7 Significant Top Line Currency Impact in 2003 (in Million vs. 2002) 0 US-$ Brazilian Real Yen Others Total Exchange Rates (rounded) for 1 : US$ 0,95 1,13 Braz. Real 2,79 3,47 Jap. Yen 118,10 131,00 Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 8

5 Strong Performance in all Businesses Sales 2003: 5,764 Mio. Environmental Science 692 Mio. Maintained #1 Position Consumer Business US grew > 30 % Progress on US Distribution Partnership Successful Repositioning of Premise BioScience 271 Mio. Solid Growth in Core Segments US Canola Sales up 22 % vs Strong Increase in Cotton Business Solid Performance of Nunza Business Broad Settlement with Monsanto Crop Protection 4,801 Mio. Strengthened Leading Position Great Cereal Herbicides Campaign in Europe Strong Performance in Cereals & Corn in US Australia & India recovering from 02 Drought Excellent Year for Fungicide Portfolio in Brazil on Asian Rust 2003 Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 9 Strengthened Leading Position in Crop Protection Sales 2003: 4,801 Mio. BioScience Environmental Science Fungicides Strong Campaign in Asian Rust with Folicur & Flint 1,168 Mio. Dry Conditions impact Portfolio in Europe Herbicides Solid Performance of Puma in NAFTA Strong Basta Sales in Asia Successful Launches of Atlantis & MaisTer 1,848 Mio Seed Treatment Successful Launch of Poncho Insecticides 1,376 Mio. Strong Business with Aztec & Decis Difficult Cotton Season with Temik Successful Confidor Campaigns in US and Cono Sur 409 Mio. Record Year with Gaucho & Raxil Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 10

6 Significant Growth from New A.I.s (Launched in Key Countries since in Million, Figures Rounded) Iodosulfuron (90) +49% Mesosulfuron (58) Foramsulfuron (61) Thiacloprid (25) 300 Clothianidin (19) Others (67) 200 Trifloxystrobin (200) Pro-Forma 2003 Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 11 Significant Increase in Operating Profit & Margin (in Million) Sales EBIT** 4, % -2% pro-forma 5,764 Major Deviations: Sales Increase Synergies / OTC Step Up Inventory 11.0% EBITDA- Margin 18.6% Brazil Bad Debt Goodwill Amortization Profit Divestments Others 2002 Legal View * 2003 * 12 Month Bayer Crop Protection +7 Month Aventis CropScience ** EBIT post exceptional items Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 12

7 Successful Management of the Integration Finalized Divestment Process* Completed 85 % of global Integration Activities All Countries One-Face-to the Customer Site Consolidation Process on Track Uninterrupted Supply of Product Synergies / Integration Costs on Track Net P&L Effect of 51 Million in 2003 Synergy Target of 570 Million in 2006 confirmed * One Minor Project Pending Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 13 Delivering on our Commitments Integration / Synergies What We Told You - Targets Complete Divestiture Process Continue Integration Activities Achieve Synergy Targets What We Did- Achievements Forced Divestments completed* 85% of Activities completed Delivered 2003 Synergy Targets Portfolio 2% above Market Growth Portfolio Streamlining Significantly Outperformed Market Streamlined 5 Own A.I.s and 30% (96) of 3rd party Products New Product Launches Launch of 2 3 new Products per Year Spirodiclofen (Envidor ) and Clothianidin (Poncho ) launched Working Capital Management Reduce Risk in Brazil Focus on Receivables Mgt. (A/R) Reduce Working Capital Reduced DSO from >480 to ~260 A/R reduced by ~225 Mio. ** Reduced WC by ~270 Mio. ** * One Minor Project Pending ** Valuation Date: December 31 Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 14

8 Strategic Priorities Manage Innovation Crop Protection Capitalize on Best in Class Portfolio Environmental Science Expand Specialty Business BioScience Develop Next Generation Biotech Solutions Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 15 Manage Innovation Identify new Active Ingredients State of the Art Technology New Modes of Action Favorable environmental Profile Optimize existing Portfolio New Formulations / Mixtures Improved Application Technology Proximity Innovation in Specialty Business Partnership Approach Seek active Dialogue with Stakeholders Enhance Acceptability of Science Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 16

9 Continuous Stream of Innovation Drives Future Growth Methoxyfenozide Spirodiclofen Fluoxastrobin Spiromesifen Ketoenole #3 Mesosulfuron Clothianidin Prothioconazole Ethiprole Herbicides plus Safener Foramsulfuron Picobenzamid Herbicides Insecticides Fungicides Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 17 Strong New Insecticide Compounds Ketoenole: Novel Substance Class Very Diversified Spectrum of Insecticidal Activities to Control Sucking Pests Broadly Patented by Bayer CropScience Novel Mechanism of Action against Insects: Lipid Biosynthesis Inhibitor Ketoenole #3 in full Development Spirodiclofen Spiromesifen Ketoenole #3 Launch 2003 Launch 2004 / 2005 Launch exp Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 18

10 Future Cornerstones of the Fungicide Portfolio HEC TM (Fluoxastrobine) JAU TM (Prothioconazole) New Generation of Strobilurin Latest Generation DMI Broad Efficacy Excellent Safety Profile Flexible Application Timing Improved Yield and Grain Quality Tailor-made Solutions in Spray & Seed Treatment Applications Excellent Fit in Fungicide Portfolio Anticipated Peak Sales > 300 Million Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 19 Successful Launches of New Generation Herbicides Foramsulfuron Complete Grass and good basic Broadleaf Spectrum in Corn Launched in 2002; Now Registered in 17 Countries Rapid Market Penetration; Second Year Sales of 60 Million Anticipated Peak Sales: ~ 100 Million Mesosulfuron Cereal post-emergence Herbicide with very broad and consistent grassy Weed Performance as Driver Launched in 2002; Now Registered in 16 Countries Sales one Year after Launch: 58 Million Anticipated Peak Sales: ~ 180 Million Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 20

11 Safener Technology Efficient Tool for Enhancing Crop Selectivity Reduce herbicidal Injury through enhanced Speed of Detoxification in Crops Broaden Application Spectrum of new and existing Herbicides Increase Number of Candidates for Commercialization out of R&D Safened Herbicides in current Portfolio represent a Value of ~ 300 Million Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 21 Strategic Priorities Manage Innovation Crop Protection Capitalize on Best in Class Portfolio Environmental Science Expand Specialty Business BioScience Develop Next Generation Biotech Solutions Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 22

12 The Only Company to Offer 3 Chloronicotinyls (CNI) Sales (in Million) 650 Clothianidin CAGR : +7.3 % Thiacloprid Imidacloprid Key Pillars of our CNI Strategy: Strong Growth from new Molecules Building Blocks in Imidachloprid Defense Strategy Product Diversification: Foliar, Soil, Seed Treatment & Specialty Applications Regional Diversification: ~160 Crops in 120 Countries Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 23 Product Diversification with Tebuconazole Sales in Million Soybeans Potato Turf Other Flowers & Ornamentals Coffee Oil Seed Rape Banana Grapes Pome / Stone Fruit Vegetables Peanuts Cereals Seed Treatment 0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 24

13 Strong Growth of Trifloxystrobin Sales in Million +64% % Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 25 Asian Rust in Soybean - Brazil Seasons 2000 / 01 and 2001 / 02 First Detection / Spread Season 2002 / 03 Soya Area Grown: ~ 18 Mio ha. Area Treated for Rust* ~ 13 Mio ha. Market Value: ~ $ 140 Mio. Season 2003 / 04 Soya Area Grown: ~ 21 Mio ha. Area Treated for Rust* ~ 20 Mio ha. Market Value**: ~ $ 325 Mio. We offer a comprehensive Portfolio * Multi ha ** Estimation Bayer CropScience; Season Ongoing Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 26

14 Strategic Priorities Manage Innovation Crop Protection Capitalize on Best in Class Portfolio Environmental Science Expand Specialty Business BioScience Develop Next Generation Biotech Solutions Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 27 Portfolio of Strong Brands Drives Business in Strategic Market Segments Branded Lawn & Garden Pest & Weed Control Green Industry Pest Mgmt. Professional Speciality Actives Fertilizers Growing Media / Soils Farm Hygiene Wood Preservation Vector / Locust Control Consumer Segment: Products for Consumers Home & Gardening Needs Non Strategic Market Segments Professional Segment: Pest Control Solutions for Professionals Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 28

15 Environmental Science Accesses Attractive Branded Product Markets Bayer CropScience Crop Protection Active Ingredient Innovation Development Production Bayer Environmental Science Proximity Innovation Tailor-made Products & Services Customized Marketing & Distribution Specific Regulatory Skills Consumer Competitive Advantage through Forward Integration: Business Risk Diversification Augmented Value of innovative Active Ingredients Markets with strong Growth Potential Higher Margins through Branding Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 29 Proximity Innovation with Imidacloprid Bayer CropScience Crop Protection Active Ingredient Innovation Development Production Bayer Environmental Science Consumer Business (Sales 2003: 41 Million) Professional Business (Sales 2003: 87 Million) Consumer Proximity Innovation to offer tailor-made Solutions for the specific Requirements of the Consumer and Professional Market Segments Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 30

16 Room for Growth in US Consumer Market (in Billion) Global Consumer Market* Bayer Environmental Science Market Share: ~ 13 % 1.9 bn 0.25 bn Market Growth NAFTA 24% 5% 60% 55% 2% 25% Europe 1% 15% RoW 21% * Estimation Bayer CropScience Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 31 Expand our Position in Environmental Science Capitalize on the Backward Integration with Crop Protection Grow Bayer Advanced Lawn & Garden Business in the US through Distribution Partnership Further develop our Portfolio of strong Brands Focus on Proximity Innovation to User / Consumer Requirements Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 32

17 Strategic Priorities Manage Innovation Crop Protection Capitalize on Best in Class Portfolio Environmental Science Expand Specialty Business BioScience Develop Next Generation Biotech Solutions Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 33 Realignment of Strategic Business Focus Focus on Three Key Business Fields: Vegetables, Agricultural Crops, New Business Ventures Concentrate Resources in Agricultural Crops on: Cotton, Canola and Rice Significantly increase Investment in New Business Ventures covering: Health, Nutrition and BioMaterials Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 34

18 BioScience Strategy Short - Term - Expand Vegetable Seed Business Nunza - Leverage FiberMax Brand and Cotton Expertise - Enhance InVigor Position in Canola - Continue Crop Production Model (Seeds + Technology + Chemicals) Mid - Term - Build on Technology Platform in Cotton, Canola & Rice - Expand leading Position in Cotton Fiber Quality - Engage in Downstream Product Development through Partnerships (e.g. Starch Modification) Long - Term - Increase Investment in New Business Ventures covering: Health, Nutrition and BioMaterials Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 35 Strengthen A Sustainable Leadership Position Foster a focused and result driven Organization 26% EBITDA Margin Long-Term Aspiration Reinforce Our Leading Role in Crop Protection & Environmental Science Implement new BioScience Strategy Grow Business through New Product Launches Achieve our Synergy Targets 25% EBITDA Margin 2006 Commitment Continue Above Market Growth Become the Industry Benchmark in Profitability Spring Investor Conference Bayer Group Dr. Jochen Wulff Slide 36