archiv investor handout june 2002

8/2/2019 Archiv Investor Handout June 2002

1/69

Investor Handout1st Quarter 2002 Results

Investor Handout June 2002


2/69

Safe Harbour

This presentation contains forward-looking statements

based on current assumptions and forecasts made byBayer Group 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 our public reports

filed with the Frankfurt Stock Exchange and with the U.S.

Securities and Exchange Commission (including our Form

20-F). The company assumes no liability whatsoever to

update these forward-looking statements or to conform

them to future events or developments.



3/69

A Far-Reaching TransformationFocus Outcome

to significantly increase corporate value

Portfoliomanagement

Organization

Capitalallocation

Efficiencyimprovement

Corporate culture

Optimization of business mix

Management holding structure

Strict capital discipline

Ideally prepared for next upswing

Entrepreneurship,performance orientation

.

1



4/69

1) major examples since 19962)

3) 2004 estimate 3004) pending

Acquisitions1)

G ACS2)

G Flint3) 50G CSM 130G

Sybron 230G Cytec paper chemicals 70G Polyols & PO j.v. 800G Gustafson (50%) 110G Chiron Diagnostics 500G Graphic Arts 450G Sheet business 200G Roche j.v. 200

Divestitures1)

G Household insecticides4) 390G Haarmann & Reimer4) 870G Rhein Chemie4)

G PolymerLatex (50%)4) 200G Spandex fibers4) 220G Acrylic fibers 160G Erdlchemie 460G DyStar 400G Agfa 4,350G Titanium dioxide 210

G Silicones 220G Citric acid 250G Enamels 100G Skin & body care 115

Acceleration of Portfolio Management:Nearly 16 bn since 96

Sales in million

Bayer

.

8,300

2

300

7,500

4,300

2001 sales; subject to regulatory approval



5/69

Ov.

1998 1999 2000 2)

million

Acqui-sitions

Proactive Portfolio Management1)

1) Major examples, acquisition prices rounded2)

3) incl. Agfa & others4) Non-binding letter of intent, subject to relevant approvals

Acqui-sitions

13,4003)1,440 360 4,160 7,450

HC

Ag

Pol

Ch

Erdlchemie Covexx

Films Haarmann

& Reimer2)

530 Citric acid TiO2 Silicones Zeolites

DyStar + Sybron+ CSM+ Cytec paper

chemicals

Solar-gradeSilicon

2,900+ PC shields + PC shields

+ Laserlite

+ Elastochem

Acrylicfibers

RheinChemie2)

PolymerLatex2)

OrganicPigments US2)

+ Lyondell

8,500+ Gustafson

+ Seed treat-ment

+ Pbi Home &Garden

+ Flint+ Misung

Biologicals

+ Mikado

+ ACS2)

1,300+ Chiron

+ Millennium

+ Oncogene

+ LionBioscience

Allergens

+ Rid

Schein Myriad

Tropon Basics

+ CuraGen

+ AventisBehring4)

Generics Household

insecticides2)

3

01/02

pending/subject to regulatory approval/as of Apr. 02



6/69

Portfolio Optimization Continues

Aug

Mar

Dec

2002

Jan

2001

Jan

2002

Feb

2001

May

1) subject to relevant approvals2) pending3) Non-binding letter of intent to establish a joint venture, Subject to due

diligence, the negotiation of a final agreement, approval by the boards ofboth companies and regulatory authorities

Acquisitions/Joint Ventures

Divestitures

+ Mikado

Real estate Organic pigments

Erdlchemie

+ AventisBehring3)

+ AventisCropScience1)

Haarmann & Reimer2)

PolymerLatex2)

Rhein Chemie2)

Generics2) (F, SA, E)

Household

insecticides

2)

4



7/69

Strategic Priorities

.

Find strategicpartner

CropScience Polymers

Successfullymanage ACSintegration

Expandgloballeadership

Health Care Chemicals

Continuerestructuring

Optimizebusiness mix

Concentrateon high-value-added polymers

Exploit growthpotential in Asia

Researchnew areas ofapplications

Achieve specificefficiencyimprovements

Streamline portfoliorigorously

Strengthenspecialty business

Consider alloptions forcooperations

Achieve targetedcost savings

Find long-termsolutions for Basic,Fine and SpecialtyChemicals

Gain marketshare

Optimize regionalpresence

Exploit full synergypotential

Achieve margin

target

Develop positionof Agbio

Life cyclemanagement ofestablishedproducts

Successful launchof new products

Build the pipeline

Establish newbusiness groupBiologicals

AchieveDiagnosticsrestructuringtargets

5



8/69

* Animal Health business is part of Health Careeffective January 1, 2002

Bayer Health Care: Strong Presence inMain Areas of the Business

Sales 2001: 10.7 bn

44%

9%

19%

20%

8%

Pharma-ceuticalsG

CiproG Adalat

G Avelox

G Trasylol

Diagnostics

G Glucometer Elite

G Advia Centaur

G ACS

Animal Health*

G Advantage

G Baytril

Biologicals

G Kogenate

G Gamimune

ConsumerCare

G AspirinG Alka-Seltzer

G Canesten

6



9/69

in million euros

* Non-binding letter of intent to establish a joint venture, subject todue diligence, the negotiation of a final agreement, approval bythe boards of both companies and regulatory authorities

Building a New Biologicals Company*

Bayer BiologicalsSales 2001: 945 m

G Combination of BayersBiologicals with AventisBehring

G Bayer would own a substantialmajority interest

G Option of acquiring theremaining interest at a laterdate

G Attractive long-term growthprospects

G Reliable and steady plasmasupply

G Potential to optimize plasmautilization

G Potential to increase efficiencyin quality assurance andmanufacturing processes

G Stronger pipeline andtechnology platform

Albumin

Others

Gamimune

Kogenate

24926 %

Prolastin

34336 %

13114 %

10111 %

12113 %

7



10/69

MillenniumCuraGenMyriadGenome Therap.Incyte

Nova DXAffymetrixDyaxOnyx

pathomecha-

nism

mole-culartarget Bioinformatics

FunctionalGenomics

Genomics

High Through-

put Screening

Combinato-rial Chemistry

SubstanceLibraries

Proteomics

CyBioNovalonReceptron

Lion Bioscience

PharmacopeiaArQuleComGenex

Oxford AsymmetryGenzymeGenetics InstituteMorphosys

Toxico-genomics

CuraGen

Oxford Glyco Science

screening

optimiz-ation

G More than 1bninvestment

committed

G US $ 465 milliongenomics coope-ration withMillennium

G Bioinformaticsalliance with

Lion Bioscience

G First risk/rewardsharing agreementwith CuraGen

A World Class Drug Discovery Platform

8



11/69

Numberofcandidat

es/year

97 99 01 04*

Numberofcandidate

s/stage

Pre-clinical

PhaseIII

PhaseII

PhaseI

1998

* objective

Phase III / NDAs

13

5

24

35

9

13

20

Substantial Growth of the Pipeline

G Vardenafil: highly selective and potent PDE 5 inhibitor, filed in US,EU and Japan

GCipro OD: innovative once daily formulation

G Acarbose IGT: new indication for Glucobay/Precose

G Repinotan: intravenous drug for the treatment of acute stroke

G Faropenem: new broad spectrum antibiotic

Research Development

9

24

9

5

2001



12/69

HC

Vardenafil: The New Blockbuster

Improvement of erections after treatment with Vardenafil

% Yes

Placebo 10 mg 20 mgPlacebo 5 mg 10 mg 20 mg

G Peak sales potential > 1 bn

G A highly selective and potent PDE 5 inhibitor

G Significant improvement in key efficiency parameters irrespective ofage, severity and etiology

G A very favorable safety profile

G Global co-promotion partner (except Japan): GSK

G NDA submission: 9/2001 US, Mexico10/2001 Canada, South Africa12/2001 Europe, Japan

13%

57%

72%

28%

65%

80%85%

13%

59%65%

General Population Diabetics/Prostatectomized men

10



13/69


















Gain marketshare



Achieve margin

target




Build the pipeline



11



14/69

ACS Acquisition Agreement* million

Acquisition price 7,250 (incl. debt, 100% of shares)

Sales (2001) 4,300

StarLink Technology and potentialliabilities remain with Aventis S.A.

Synergies approx. 500 per year

Restructuring costs approx. 500

Goodwill** approx. 4,000 (over 12 years)

Closing June 03, 2002

* The acquisition of Aventis CropScience is subject to regulatory approval

** Potential reduction depending on divestment structure

12



15/69

Complementary Strengths: Bayer and ACS

Strengths Bayer Strengths ACS

Product portfolio:Insecticides, Fungicides

Technical competence

Strong presence in Europe

Strong position inspeciality markets:GPS, Seed Treatment

High profitability

Product portfolio:Herbicides, Insecticides

Strong presence in allimportant regions and crops

Biotechnology and Seed

Good position withEnvironmental Science

13



16/69

Bayer CropScience: Combination of TwoStrong Companies

( ) market share

1

1

3

2

BioScience

EnvironmentalScience

Insecticides

Herbicides

Fungicides

* Pro-forma combination 2001 including Bayer`s EnvironmentalHealth business and including estimated post divestment impact

% of total*

3 %

12 %(24 % ms)

32 %(26 % ms)

31 %(14 % ms)

22 %(22 % ms)

market ranking

2001 Sales: 6.5 bn

Market Share: ~ 20 %

14



17/69

EU/FTC-Approval of the ACS-Acquisition

The European Commission and U.S. FTC approved theacquisition of Aventis CropScience

< 10 percent of the combined business ( 650-700 m)to be divested

Insecticides

Global business for fipronil based products for agro-chemical applications. Option to license back exUSA and EU

Business for certain specialty insecticides

Fungicides EU business for ACS fungicides, mainly used for

seed treatment

Herbicides

EU business for metamitron (Goltix), flucarbazonebusiness (Everest)

Strategic rationale for the acquisition remains intact

15



18/69


















Gain marketshare



Achieve margin

target


.



Build the pipeline



16



19/69

Leading Ag Companies - Turnover 2001 million (including Seeds & Biotechnology)

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Syngenta

Monsanto

DuPont

BASF

Dow

MAI

Sumitomo

FMC

Nufarm

Bayer

CropScience*

589

729

818

876

3.174

3.478

4.291

5.821

7.011

7.062

* Pro-forma basis w/o divestments

Source: Phillips McDougall

xx



20/69

Customer Structure

39%

13%10%

38%

Sales 2001: 14.5 bn (Polymers & Chemicals)

* Animal Health business included in Health Care

6 %

20 %

25 %

8 %

16 %

12 %

13 %

CropScience*

HealthCare*

Chemicals

Polymers

Textile, Leather& Footwear

Automotive

Others

Furniture

Chemicals

Construction

Electronics

.

17



21/69

Concentration on High-Value-AddedPolymers

Others

ABS

PC

.

Solid Rubber

Engineering Thermoplastics

Others

ThermosettingResins

Coatings

PU

PE

PVC14%

PP16%

4%3%

1%3%

18

28%

PS 7%PET 6%

4%

10%

4%

World market polymers 01; Total 190m tons



22/69

Global Leadership in High-Value-AddedPolymers

Sales 2001: 10.8 bn

.

ms = Market share# = Ranking

Polycarbonates 40

Styrenics 35

SemicrystallineThermoplastics 10

30

15

> 5

ms%

2

2

6

#sales%

TPU 5 > 20 2

> 20 2

25

26

26

ms%

1

1

1

#

TDI 17

MDI 33

Polyols 43

sales%

Isocyanates 38

Adhesives 14

Colorants 25

Others 23

> 50

34

24

ms%

1

1

1

#sales%

31%Plastics

30%

Poly-urethanes19%Coatings

andColorants

20%

Rubber

Fabricated Products 10

19



23/69


















Gain marketshare



Achieve margin

target




Build the pipeline



20



24/69

Chemicals

Business Portfolio and OperationalPerformance Substantially Improved

SpecialtyProducts

Inorganics

OrganicChemicals

1996

WolffWalsrode

H.C. Starck

SpecialtyProducts

Basic & FineChemicals

2001Divestitures 2,600

Acquisitions 480

Headcount 10,000*

Sales 4,898 m

regrouped

* including 3,800 of H & R

ECErdlchemie

DyStar

H.C. Starck

Haarmann& Reimer

divested

divested

to bedivested

Citric acid

Abrasives &Refractory

Enamels

Silicones

Titaniumdioxide

Solar-gradesilicon

H-acid

CSM+

Sybron+

Cytec+

Sales 3,748 m

21



25/69

Basic & Fine Chemicals

Fine chemicals 27 % Basic chemicals 49 %

Inorganic basic chemicals 22 % Others 2 %

H.C. Starck

Metallic powders

Mill products Ceramic powders

Specialty Products

Leather chemicals 22 % Textile auxiliaries 27 % Paper chemicals 21 %

Polymer additives 11 % Material protection 8 % Ion exchange 10 %

Bayer Chemicals

Attractive Opportunitiesin Specialist Applications

Sales 2001: 3.7 bn

Wolff Walsrode

Cellulosederivatives

Plastic films

22%

12%39%

27%

22



26/69

Strategic Priorities*Sales (cont.) 2001: 28.938 m

Find strategic partner

Health Care

Successfully manageACS integration

CropScience

Expand globalleadership

Polymers


Chemicals

* Animal Health business included in Health CareThe acquisition of Aventis CropScience is subject to regulatory approval

Corp.

13%

39%

10%

38%

23



27/69



Portfoliomanagement

Organization

Capitalallocation


Corporate culture






24



28/69

Strict Capital Spending Discipline Enforced

CapEx: Capital Expenditures CapEx/D&A-Ratio

D&A: Depreciation & Amortization

1998 1999 2000 2001

2,703

1,543

2,632

1,811

2,6472,139 2,617 2,516

Plan

million

1.01.0

1.2

1.5

1.8

25



29/69



Portfoliomanagement

Organization

Capitalallocation


Corporate culture






26



30/69

Building a Highly Competitive BusinessPlatform

G Stronger focus on markets, core competencies and business

performance

G Strengthen entrepreneurial approach, direct management anddirect responsibility for earnings

G Reduce complexity of corporate organization and governance

G Achieve necessary flexibility for strategic partnerships and

integration of acquisitions

G Exploit cross-business-group synergies in business areacompanies more efficiently

G Enhance visibility and competitive stance of service functions

27



31/69

Group Management Board

BayerHealthCareAG

BayerCrop

ScienceAG

BayerPoly-mersAG

BayerChemi-

calsAG

Principle of new corporate structure

Most effective possible support for businesses and sufficient flexibility for masteringstrategic challenges

Corporate Center-Departments

Bayer StandortDienste GmbH & Co.OHG

Bayer TechnologyServices GmbH

Bayer BusinessServices GmbH

Services

28

The New Bayer



32/69

The New Group Management Board

G Corporate Policy

G Corporate Coordination

G Communication

G Investor Relations

G Portfolio Management

G Allocation of resources

G Group HR policy

G HR Management and development

G Finance

G Planning and Controlling

G Tax and Legal

G Mergers & Acquisitions

G Technology Management

G Innovation Management

G Environmental and Safety Policy

G Technology Excellence Initiatives

G Business Excellence Initiatives

G Regions

G Business ServicesG Information and Knowledge Management

Werner Wenning

Chairman

Dr. Richard Pott

Strategy, Human Resourcesand Labor Director

Klaus Khn

Finance

Dr. Udo Oels

Technology andEnvironment

Werner Spinner

Marketing, Regionsand Services

29



33/69

The New Bayer Holding Structure

Corporate Center-Departments

Group Management Board

Corporate Planningand Controlling

Communications

InvestorRelations

Finance

Legal, IntellectualProperties,Insurances

Taxes

Int. HRManagement

Health, Safetyand Environment

Management

CorporateAuditing

30



34/69

Bayer HealthCare AG

Global Executive Committee

Head of Biological Products G. Riemann

Head of Consumer Care G. Balkema

Head of Strategy N. N.

Administration W. Baumann

Head of Dr. W.Pharma Plischke

Head of Prof. Dr. F.Animal Health Berschauer

Chairman Dr. F. Morich

Board of Management

AnimalHealth

BiologicalProducts

Con-sumerCare

Diagnos-tics Pharma

Administr.&

ServicesStrategy

Germany USA USA USA Germany Germany USA

31

Head of Diagnostics R. Classon



35/69

Bayer CropScience AG

Business Operations

Chairman Dr. J. Wulff

Board of Management

Dr. E. Zirakparvar

Administration

Technology Dr. B. Garthoff

W. Scherf

IndustrialOperations

PortfolioManagement

EnvironmentalScience Planning, Contr. &

Coordination

AccountingInformationTechnology

BusinessProcesses

Procurement

Communications

Legal & Patents

HumanResourcesSupply Chain International

North-EastAsia

Development Cono Sur

Research NAFTA BioScience

Europe

France

USA

Brazil

Japan

France

France

Germany

32



36/69

Bayer Polymers AG

Global Executive Committee

Head of Europe Dr. J. Dahmer

Head of America I. Paterson

Head of Asia Dr. A. C. HeitmannOperations Dr. T. van Osselaer

Innovation, Information,Services Dr. D. Hillenbrand

Chairman Dr. H. Noerenberg

Board of Management

Asia

Germany

AmericaEuropeProduct

unitsInnovation

USA Hong Kong

TechnologyServices

33



37/69

Bayer Chemicals AG

Business Units B. OlsonRegions

Technology, R & D, Services Dr. M. Wienkenhver

Chairman Dr. U. Koemm

Board of Management

Units Regions

H. C. Starck

Business Services

Planning, Contr., Reporting

Technology

Research and Development

34



38/69



Portfoliomanagement

Organization

Capitalallocation


Corporate culture






35



39/69

* Continuing operations

Productivity, Employees and PersonnelExpenses

Personnel expenses

(% of sales)

31

1996

29

1998

25

2000*

26

2001*

67.0 64.2 50.4 49.7

75.2 80.9

63.562.3

142.2 145.1

113.9 112.0

175193

251 258

Domestic

Foreign

Employees(thousands)Total

Sales peremployee(EUR thousands)

26 %

17 %

21 %

+ 47 %

36



40/69

Efficiency Improvement Program

Identified

Net

Savings

(after excep.)

million

9801 2002 2003 2004 2005 Total

605

511

329

235

54

1,734

Planned savings of 1.8 bn by 2005

G Number of projects: 9

G Total one-time charges: 640

G Headcount reduction: 5,000

37



41/69

Working Capital Initiative

Time Objective

Reduction of working capital

End 01

G Receivables ManagementG Payables Management

G Inventory Management

Improvement of working capitalprocesses and organization

End 02

1 bn

11.5 bn

G Broadly based program initiated

G Wide range of actions identified

38



42/69

Strong Working Capital Performance

W. Cap.improvement(prev. year)

Change in networking capital

Gross cash flow

Net cash flow

104

Q1

770

84

Q2

235

822

Q3

766

1,375

Q4

1,175

2,009

936187.2%

29.8

% YoY

297

1,067

534

768

441

1,207

647

1,821

2,923

3,859

+24.8

million

39

Year 2001



43/69



Portfoliomanagement

Organization

Capitalallocation


Corporate culture






40



44/69

Q102 Financial Highlights

Sales 7,233 7,901 8.5

Sales (cont.) 6,957 7,440 6.5

Operating income 840 848 0.9

Operating income 493 912 45.9pre-exceptionals (cont.)

Non-operating result 157 126 24.6

Pre-tax income 683 722 5.4

After-tax income 524 438 + 19.6

Net income 523 442 + 18.3

Earnings/share (Euro) 0.72 0.61 + 18.0

million

Q102 %Q101

41



45/69

Components of Q1 Sales Trend

Sales

Discontinuing

Continuing

Acquisitions/Divestitures

+Currencies

Prices

+Volumes

%

8.5

6.5

+ 0.4

3.8

+ 0.9

4.0

7,233

276

+ 28

281

+ 69

299

Continuing

Divestitures 299

Baycol 246

Covexx 25

ChemDesign 20 H-acid 8

million

20022001

7,901

461

7,440

6,957

42



46/69

2002 2001 %

OPI reported 840 848 0.9

Segments 435 872 50.1 Reconciliation 386 (48)

Discontinuing operations 19 24

H & R 22 24

Fibers (3) (15)

Erdlchemie 15

OPI continuing 821 824 0.4

Exceptional items (cont.) 328 (88)

OPI underlying 493 912 45.9

continuing operations

Q1 Comparable Operating Income million

43



47/69

Q1 Exceptional Items

2002 2001

million Charge Gain Net Charge Gain Net %

HealthCare 14 0 14 14 0 14 0

CropScience 0 0 0 0 0 0 0

Polymers 102 0 102 18 0 18 84

Chemicals 6 0 6 51 0 51 + 45

Reconciliation 2 + 452 + 450 5 0 5 + 455

Cont. 124 + 452 + 328 88 0 88 + 416

Discont. 0 0 0 17 0 17 + 17

Total 124 + 452 + 328 105 0 105 + 433

44



48/69

point of origin

Q102 Sales by Region

Europe

8.2 %

Total 7,233 million, 8.5 %

Continuing operations 6,957 million, 6.5 %

North

America

3.9 %

Far East/Asia/Pacific

6.5 %

Latin America

6.8 %

Germany 11.7 %

45

1,989

3,297 2,266

900494



49/69


50/69

Pharmaceuticals - Top 10 Products million

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

Ciprobay

Adalat

Kogenate

Gamimune

Glucobay

Avelox

Trasylol

Prolastin

Nimotop

Fraction V

407

207

84

76

74

68

44

42

33

21

+ 21

23

+ 75

+ 25

1

5

+ 19

+ 33

+ 10

10

%Q102

47



51/69

Q102 Non-Operating Result

Non-operating result 157 126 24.6

Income (expenses) from + 3 + 31 90.3affiliated companies net

Interest expense net 62 88 + 29.5

Interest portion pensionprovisions 67 68 + 1.5

Exchange gain net 10 + 17

Miscellaneous net 21 18 16.7

Q101Q102 % million

48



52/69

Pharma 1,422 1,257 11.6CC + DS 964 950 1.5Animal Health* 180 203 + 12.8

HealthCare 2,566 2,410 6.1CropScience** 814 866 + 6.4KA + KU 1,522 1,308 14.1PU + LS 1,324 1,340 + 1.2Polymers 2,846 2,648 7.0Chemicals 1,023 847 17.2

OPI pre-except.( million)

Pharma 285 131 54.0CC + DS 73 63 13.7Animal Health* 22 50 + 127.3HealthCare 380 244 35.8CropScience** 213 144 32.4KA + KU 185 24 87.0PU + LS 45 68 + 51.1Polymers 230 92 60.0Chemicals 132 77 41.7

Q1 Overview by New Reporting Segments

Sales Q101 Q102 %( million)

Q101 Q102 %

* Animal Health ex. Hygiene is part of HealthCare effective January 1, 2002** Hygiene business included in CropScience effective January 1, 2002

49



53/69

G Sales 7,372 8.5 30,275 2.2

G Sales (cont.) 7,115 4.7 28,938 + 1.1

G Operating income 256 55.0 1,611 51.0

G Operating income (cont.) 251 50.7 1,242 59.5

G Operating income 356 41.7 1,855 42.2pre-exceptionals (cont.)

G Non-operating result 79 + 37.8 496 67.0

G Pre-tax income 177 60.0 1,115 62.7

G After-tax income 139 45.9 961 47.8

G Net income 142 43.0 965 46.9

G Earnings/share Euro 0.19 43.0 1.32

G Dividend Euro 0.90 35.7

million

Q4 %2001 %

47.0

2001 Financial Highlights

50



54/69

Components of 2001 Sales Trend

Sales

Discontinuing

Continuing

+ Acquisitions/Divestitures

+ Currencies

+ Prices

Volumes

%

2.2

+ 1.1

+ 0.3

+ 1.0

3.2

+ 3.0

30,275

1,337

81

298

915

859

Continuing

Acquisitions + 983

Lyondell + 202 CSM + 133 Flint + 104 Mikado + 46 Sybron + 206 Cytec + 83 Others + 209

Divestitures 124

Covexx 61 Biologicals (AH) 30 H-acid 18 Bayer Solar 15

million

20012000

30,971

2,356

28,615

28,938

51



55/69

million2001 2000 %

4th quarter 7,372 8,053 8.5G H & R 209 213G Fibers 48 124G EC 162

G DyStar 88Continuing operations 7,115 7,466 4.7

3rd quarter 6,931 7,680 9.8G H & R 217 219G Fibers 63 131G EC 162G DyStar 85Continuing operations 6,651 7,083 6.1

2nd quarter 8,071 7,907 + 2.1G H & R 224 222G Fibers 58 128G EC 57 149G DyStar 93Continuing operations 7,732 7,315 + 5.7

1st quarter 7,901 7,331 + 7.8G H & R 222 211G Fibers 63 123G EC 176 162G DyStar 84Continuing operations 7,440 6,751 + 10.2

* completely restated

52

2001 Quarterly Sales Development*



56/69

* accounted as at equity since 2001

million

2001 2000 %

OPI reported 1,611 3,287 51.0

G Segments 1,504 3,303 54.5G Reconciliation (262) (239)

G Discontinuing operations 369 223

H & R 73 68

Fibers (37) 51

Erdlchemie (OPI + Sale) 333 99 DyStar* 5

OPI continuing 1,242 3,064 59.5

G Exceptional items (cont.) (613) (145)

OPI underlying 1,855 3,209 42.2

continuing operations

53

2001 Comparable Operating Income



57/69

2001 2000 %

4th quarter 256 569 55.0G H & R 15 16G Fibers (10) 4G EC 46G DyStar (6)

G Exceptional items (105) (102)OPI underlying continuing operations 356 611 41.7

3rd quarter (316) 724 143.6G H & R 20 15G Fibers (8) 13G EC (1) 20G DyStar 5G Exceptional items (373) (21)OPI underlying continuing operations 46 692 93.4

2nd quarter 823 960 14.3G H & R 14 22G Fibers (4) 18G EC (OPI + Sale) 319 19G DyStar 3G Exceptional items (47) (18)OPI underlying continuing operations 541 916 40.9

1st quarter 848 1,034 18.0G H & R 24 15G Fibers (15) 16

G EC 15 14G DyStar 3G Exceptional items (88) (4)OPI underlying continuing operations 912 990 7.9

million

* completely restated

54

2001 Quarterly OPI Development*



58/69

FY 2001 Exceptional Items

2001 2000

million Charge Gain Net Charge Gain Net Net

Health Care 420 + 41 379 160 + 21 139 240

Agriculture 0 0 0 0 + 26 + 26 26

Polymers 181 + 31 150 97 + 7 90 60

Chemicals 81 + 13 68 7 + 31 + 24 92

Reconciliation 19 + 3 16 0 + 34 + 34 50

Cont. 701 + 88 613 264 +119 145 468

Discont. 23 + 316 + 293 24 0 24 + 317

Total 724 + 404 320 288 +119 169 151

55



59/69

Non-operating result 79 496 199

Income (expenses) from + 26 + 54 229affiliated companies net

Interest expense net 67 349 38

Interest portion pension 65 274 2provisions

Exchange gain net + 21 + 49 + 70

Miscellaneous net + 6 + 24 0

2001Q4 YoY million

2001 Non-Operating Result

56



60/69

point of origin

2001 Sales by Region

Europe

+ 0.6 %

Total 30,275 million, 2.2 %

Continuing operations 28,938 million, + 1.1 %

North

America

+ 1.1 %

Far East/Asia/Pacific

+ 1.5 %

Latin America

+ 3.4 %

Germany 0.2 %

8,116

12,999 9,806

3,8172,316

57



61/69

2001 Segment Restatements

* Sales figures for FY 2001

Segments sales

28,938

Segments sales

27,937

2001 Segmentsw/o restatements

2001 SegmentsrestatedRestatements*

million

G Animal Health (988),w/o Environmental

Health (129) toHealth Care

G Environmental Healthto Crop Science

G H & R (872)to DiscontinuingOperations

G ElectronicChemicals (40)from Basic andFine Chemicalsto H. C. Starck

G PolymerLatex(200) andRhein Chemie(300) remain in

Polymers untildivested

Chemicals

4,618 (16 %)

Chemicals3,749 (13 %)

Polymers10,788 (37 %)

Polymers10,788 (39 %)

Agriculture3,696 (13 %)

CropScience2,708 (10 %)

Health Care9,833 (34 %)

Health Care10,692 (38 %)

58



62/69

+10

67

14

Health Care Full Year 2001

Sales

FY 01

Q2

Q1

Op. Income

(reported)

Excep-

tionals

(net)

Op. Income

(underlying)

9,833

234

771

2,543

2,386 344 358

Q3 2,167

308 2841H

million

1-9

Q4 2,737

4,929+3.8%

44137.0%

44538.7%

7,0962.3%

15884.6%

97

379392

87

46955.8%

24

302

+4.1

+3.5

1.9

13.9

0.9

74.8

+9.2

25.6

187.7

70.8

47.8

+5.3

77.5

92.8

27.4

% % %

59



63/69

million

%

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

Ciprobay

Adalat

Lipobay

Gamimune

Glucobay

Kogenate

Avelox

Trasylol

Prolastin

Nimotop

+ 10

16

42

2

0

49

+ 37

+ 30

6

7

1,964

975

367

343

312

249

181

136

131

120

2001%

+ 36

16

33

+ 5

16

7

+ 61

+ 11

14

740

223

14

83

84

106

57

45

42

30

Q4 01

60

Pharmaceuticals Top 10 Products 2001



64/69

Agriculture Full Year 2001

0

0

0

Sales

FY 01

Q2

Q1

Op. Income

(reported)

Excep-

tionals

(net)

Op. Income

(underlying)

3,696

+1.4

11.7

1,098

994

+12.0

13.3

+7.0

+1.0

Q3 787 0

45.31H2,092+0.0%

million

2,879+2.3%1-9

Q4 817

059.8

625

218

235

125

4535.8%

50016.4%

47

625

218

235

125

4537.0%

50012.7%

47

% % %

+2.9

3.0

+7.0

+9.0

+27.7

61



65/69

Polymers Full Year 2001

22

149

18

Sales

FY 01

Q2

Q1

Op. Income

(reported)

Excep-

tionals

(net)

Op. Income

(underlying)

10,788

285434

+1.5

+16.9

31.6

32.1

2,825

2,846

59.7

27.9

180

212 230

1.0

71.2

27.1202

Q4 +17.82,467

68.0811H

5,671+8.7% 392

31.7%432

27.6%

million

1-98,321+3.7%

Q3 5.62,650

6391.518

41047.8%

46161.6125 134.679513

39.6%

% % %

62



66/69

Chemicals Full Year 2001*

22

67

51

Sales

FY 01

Q2

Q1

Op. Income

(reported)

Excep-

tionals

(net)

Op. Income

(underlying)

3,749

204

271

+18.6

+27.0

+1.0

26.0

1,028

1,022

26.8

+18.8

100

82

133

+9.9

48.2

+23.2122

Q3 +3.5866

1H2,050

+22.6%

18228.3%

255+20.9%

million

Q4 7.5833

2,916+16.3%1-9

294.0

18727.0%

+883.091.8

26211.5%

87.8

% % %

7

9

17

5

* completely restated (without H & R)

63



67/69

Full Year 2001 Overview by NewReporting Segments

Sales Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/( million) 2000 2000 2000 2000 2001 % 2001 % 2001 % 2001 %

Pharma 1,394 1,467 1,527 1,752 1,422 + 2.0 1,510 + 2.9 1,143 25.1 1,654 5.6

CC + DS 911 975 991 1,011 964 + 5.8 1,034 + 6.1 1,024 + 3.3 1,083 + 7.1Health Care 2,304 2,442 2,518 2,763 2,386 + 3.6 2,543 + 4.1 2,167 13.9 2,737 0.9

Crop Protection 795 783 463 414 779 2.0 + 6.0 526 + 13.6 573 + 38.4Animal Health 230 284 259 226 215 6.5 268 5.6 261 + 0.8 244 + 8.0Agriculture 1,025 1,067 722 640 994 3.0 1,098 + 2.9 787 + 9.0 817 + 27.7

KA + KU 1,365 1,446 1,476 1,528 1,522 + 11.5 1,468 + 1.5 1,343 9.0 1,249 18.3PU + LS 1,069 1,337 1,332 1,338 1,324 + 23.9 1,357 + 1.5 1,307 1.9 1,218 9.0Polymers 2,434 2,783 2,808 2,866 2,846 + 16.9 2,825 + 1.5 2,650 5.6 2,467 13.9

Chemicals 805 867 837 902 1,022 + 27.0 1,028 + 18.6 866 + 3.5 833 7.6

OPI pre-except.

( million)

Pharma 278 318 254 315 286 + 2.9 29 90.9 100 139.4 168 46.7CC + DS 62 68 80 101 73 + 17.7 57 16.2 124 + 55.0 134 + 32.7Health Care 340 386 334 416 358 + 5.3 87 77.5 24 92.8 302 27.4

Crop Protection 240 148 35 22 210 12.5 160 + 8.1 11 131.4 94 Animal Health 31 68 51 7 25 19.4 59 13.2 58 + 13.7 31 + 342.9Agriculture 271 216 86 15 235 13.3 218 + 0.9 47 45.3 125

KA + KU 137 123 148 151 186 + 35.8 131 + 6.5 44 70.3 72 147.7PU + LS 182 154 105 77 44 75.8 72 53.2 37 64.8 7 109.1Polymers 319 278 253 228 230 27.9 202 27.3 81 68.0 79 134.6

Chemicals 112 99 85 74 133 + 18.8 122 23.2 7 91.8 9 87.8

64

830



68/69

R & D and CapEx. Budgets for 2002

CapEx.

million

R & D

2,335 (cont.)(8.5 % to 2001)

2,440 (cont.)(1.9 % to 2001)

CropScience

25%

16%

37%15%

HealthCare

Chemicals

Central

PolymersHealthCare

CropScience

Polymers

Chemicals

6%

58%

16%13%

7%

7%

Animal Health included in CropScience

65



69/69

Outlook 2002

Health Care

Agriculture

Polymers &Chemicals

Higher operating earnings(pre-exceptionals) expected

Closing of ACS acquisition decisive

First half expected to remain difficult

Economic recovery expected duringsecond half of 2002

Distinct improvement in net income targeted

66

archiv investor handout june 2002

Documents