Corporate Profile and Structure

Corporate Structure

Following the stock market flotation of Covestro, we reorganized the Bayer Group effective January 1, 2016, and are now focusing on our Life Sciences This term describes Bayer’s activities in health care and agriculture and comprises the Bayer Group excluding its legally independent subsidiary Covestro. It refers to the businesses of the Pharmaceuticals, Consumer Health and Crop Science divisions and the Animal Health business unit. activities. These businesses hold leading positions in innovation-driven, rapidly growing markets. Together, the Life Science businesses make up a strong, attractive and balanced portfolio that is resistant to fluctuations in demand and to potential risks. Our operations are managed in three divisions – Pharmaceuticals, Consumer Health and Crop Science – and the Animal Health business unit, which are also reporting segments. Bayer still holds about 64% of Covestro AG. Covestro therefore also remains a fully consolidated reporting segment. The operational business is supported by the corporate functions – including Technology Services, which was integrated into Bayer AG effective July 1, 2016 – Business Services and the service company Currenta.

The following changes were made to the corporate structure in the past fiscal year:

  • In April 2016, Bayer AG deposited shares it held in Covestro AG in Bayer Pension Trust e.V. The number of shares deposited amounted to 10 million, or 4.9%, of the shares outstanding.
  • In May 2016, Crop Science signed an agreement to divest the Consumer business of Environmental Science, which has since been reported retrospectively for 2015 and 2016 under discontinued operations. Environmental Science therefore now comprises only the business for professional users. The divestment was closed at the start of October 2016.

Bayer Group Structure in 2016

Bayer Group Structure in 2016 (chart)Bayer Group Structure in 2016 (chart)

In 2016, the Bayer Group comprised 301 consolidated companies in 78 countries throughout the world.

Reporting of the regions in the Annual Report has been adjusted to reflect the distribution of responsibilities on the Board of Management. Africa/Middle East is now no longer reported together with Latin America but with Europe.

The Pharmaceuticals segment focuses on prescription products, especially for cardiology and women’s healthcare, and on specialty therapeutics in the areas of oncology, hematology and ophthalmology. The division also comprises the radiology business, which markets diagnostic imaging equipment together with the necessary contrast agents.

The Consumer Health segment markets mainly nonprescription ( OTC (over-the-counter) designates the business with nonprescription medicines. = over-the-counter) products in the dermatology, nutritional supplement, analgesic, gastrointestinal, cold, allergy, sinus and flu, foot care and sun protection categories.

The Crop Science segment is a world-leading agriculture enterprise with businesses in seeds, crop protection and nonagricultural pest control. The Crop Protection / Seeds operating unit markets a broad portfolio of high-value seeds and innovative pest management solutions, while at the same time providing extensive customer service for sustainable agriculture. The Environmental Science operating unit provides products and services for professional nonagricultural applications, such as vector and pest control and forestry.

The Animal Health segment ranks among the leading international innovators in its field. It develops and markets products and solutions for the prevention and treatment of diseases in companion and farm animals.

The corporate functions and Business Services operate as Group-wide competence centers in which business support services are bundled. Currenta is the service company responsible for managing and operating the Chempark sites in Leverkusen, Dormagen and Krefeld-Uerdingen.

Covestro is one of the world’s leading suppliers of high-tech polymer materials and develops innovative product solutions for a wide variety of everyday uses.

Online Annex: A 1.1.2-1

limited assurance

Product and Activities of the Segments

Indication/Application/
Busines
Core activities and markets
Main products and brands1

Pharmaceuticals

Cardiology

Hypertension, pulmonary hypertension, heart attack and stroke, thrombosis

Xarelto™, Adalat™, Aspirin™ Cardio, Adempas™

Oncology

Liver cancer, renal cell carcinoma, prostate cancer, colorectal cancer, gastrointestinal stromal tumors (GIST)

Nexavar™, Xofigo™, Stivarga™

Ophthalmology

Age-related macular degeneration (AMD), diabetic macular edema (DME)

Eylea™

Hematology

Hemophilia A

Kogenate™ / Kovaltry™

Women’s health

Contraception, gynecological therapy

Mirena™ product family, YAZ™ / Yasmin™ / Yasminelle™

Infectious diseases

Bacterial infections

Avalox™ / Avelox™, Cipro™, Ciprobay™

Radiology

Contrast agents; diagnostic imaging equipment for use with contrast agents

Gadovist™, Ultravist™, Medrad Spectris Solaris™, Medrad Stellant™

Other indications

Multiple sclerosis

Betaferon™ / Betaseron™

Consumer Health

Dermatology

Wound care, skin care, skin and intimate health

Bepanthen™, Canesten™

Nutrition

Multivitamin products, dietary supplements

One A Day™, Elevit™, Berocca™, Supradyn™, Redoxon™

Analgesics

General pain relief

Aspirin™, Aleve™

Gastrointestinals

Gastric complaints

MiraLax™, Rennie™; Iberogast™

Allergy

Allergies

Claritin™

Cough and cold

Cough and cold

Aspirin™, Alka-Seltzer™, Afrin™

Footcare

Footcare

Dr. Scholl's™

Suncare

Sun protection

Coppertone™

Crop Science

Fungicides

Biological and chemical products to protect crop plants from fungal diseases

Flint™, Fox™, Luna™, Nativo™, Prosaro™, Serenade™, Xpro™

Insecticides

Biological and chemical products to protect crop plants from harmful insects

Belt™, BioAct™, Confidor™, Movento™, Sivanto™

Herbicides

Chemical crop protection products to control weeds

Adengo™, Alion™, Basta™, Corvus™, Liberty™

SeedGrowth

Biological and chemical seed treatments to protect against fungal infection and pests

CropStar™, Gaucho™, Poncho™

Seeds

Seeds and traits for cotton, canola, rice, soybeans, wheat and vegetables

Arize™, Credenz™, FiberMax™, InVigor™, Nunhems™, Stoneville™

Environmental Science

Products for professional pest control, vector control, forestry, golf courses and parks, railway tracks

Esplanade™, Fludora™, Interface™, K-Othrine™, Maxforce™, Pistol™, Signature™

Animal Health

Companion animals business

Veterinary medicines and solutions to protect and maintain the health of companion animals, focusing on antiparisitics and anti-infectives

Advantage™ product family, Seresto™, Drontal™, Baytril™

Farm animals business

Veterinary medicines and solutions to treat and prevent parasitic diseases, anti-infectives, immunostimulants, pharmacological treatments and farm hygiene products

Baytril™

Covestro

Polyurethanes

Raw materials for flexible and rigid foams and for thermoplastics

Diphenylmethane diisocyanate (MDI), toluene diisocyanate (TDI) and polyether polyol product groups

Polycarbonates

Granules, sheets and films

Polycarbonate product group

Coatings, Adhesives, Specialties

Raw materials for surface coatings and adhesives and specialties

Hexamethylene diisocyanate (HDI) product group

1 The order of the products listed is no indication of their significance.