Corporate Profile and Structure
Following the stock market flotation of Covestro, we reorganized the Bayer Group effective January 1, 2016, and are now focusing on our Life Science 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.
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 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 1.1.2-1limited assurance
Product and Activities of the Segments
Hypertension, pulmonary hypertension, heart attack and stroke, thrombosis
Xarelto™, Adalat™, Aspirin™ Cardio, Adempas™
Liver cancer, renal cell carcinoma, prostate cancer, colorectal cancer, gastrointestinal stromal tumors (GIST)
Nexavar™, Xofigo™, Stivarga™
Age-related macular degeneration (AMD), diabetic macular edema (DME)
Kogenate™ / Kovaltry™
Contraception, gynecological therapy
Mirena™ product family, YAZ™ / Yasmin™ / Yasminelle™
Avalox™ / Avelox™, Cipro™, Ciprobay™
Contrast agents; diagnostic imaging equipment for use with contrast agents
Gadovist™, Ultravist™, Medrad Spectris Solaris™, Medrad Stellant™
Betaferon™ / Betaseron™
Wound care, skin care, skin and intimate health
Multivitamin products, dietary supplements
One A Day™, Elevit™, Berocca™, Supradyn™, Redoxon™
General pain relief
MiraLax™, Rennie™; Iberogast™
Cough and cold
Cough and cold
Aspirin™, Alka-Seltzer™, Afrin™
Biological and chemical products to protect crop plants from fungal diseases
Flint™, Fox™, Luna™, Nativo™, Prosaro™, Serenade™, Xpro™
Biological and chemical products to protect crop plants from harmful insects
Belt™, BioAct™, Confidor™, Movento™, Sivanto™
Chemical crop protection products to control weeds
Adengo™, Alion™, Basta™, Corvus™, Liberty™
Biological and chemical seed treatments to protect against fungal infection and pests
CropStar™, Gaucho™, Poncho™
Seeds and traits for cotton, canola, rice, soybeans, wheat and vegetables
Arize™, Credenz™, FiberMax™, InVigor™, Nunhems™, Stoneville™
Products for professional pest control, vector control, forestry, golf courses and parks, railway tracks
Esplanade™, Fludora™, Interface™, K-Othrine™, Maxforce™, Pistol™, Signature™
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
Raw materials for flexible and rigid foams and for thermoplastics
Diphenylmethane diisocyanate (MDI), toluene diisocyanate (TDI) and polyether polyol product groups
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.