BAYER PLANS FURTHER EXPANSION IN RUSSIA (ENGLISH)

     (The following press release from Bayer AG was received by e-mail. It was 
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News-Release 
Not intended for U.S. and UK Media - Growing demand from a rising middle
class:
Bayer plans further expansion in Russia
Sales in Russia expected to rise 80 percent to EUR 1.3 billion by 2017 /
First half of 2013: Sales in Russia grew by 12.5 percent / More than 800
new jobs to be created between 2012 and 2017, to a total of 2,400 / Bayer
innovations and know-how support government programs / Collaboration with
Medsintez to manufacture medicines in Russia 
Moscow, September 5, 2013 - The Bayer Group plans to further expand its
business in Russia. The company intends to raise sales by 80 percent from
their 2012 level to EUR 1.3 billion by 2017. At the same time, the number
of employees is expected to grow from 1,570 in 2012 to some 2,400 in 2017 -
an increase of more than 800 jobs. "We are committed to Russia as a partner
and want to continue to offer valuable contributions to the development in
this country, both in business and in the Russian community," Bayer CEO Dr.
Marijn Dekkers said in Moscow on Thursday at a press conference. Bayer
innovations and know-how will support Russia's strategic goals under the
current government programs. 
The company had sales of EUR 726 million in Russia in 2012, with the
HealthCare business accounting for 67 percent. In the first half of 2013,
Bayer again made good progress with sales growth of 12.5 percent. "The
middle class, which is an incremental driver of overall consumption, is
rapidly expanding. This trend is expected to continue and plays out for
industry sectors relevant to Bayer," said Dekkers, underlining the
company's growth prospects in Russia. He expects all subgroups to see
significant growth in sales. The EUR 2 billion sales threshold could be
exceeded in 2022, which would put Russia among the top ten markets for
Bayer. 
Dekkers said the Bayer Group's health care business - Bayer HealthCare -
will benefit from the strong growth in the Russian market for both
prescription-only and non-prescription pharmaceutical products. It is
currently the country's fourth largest health care company. HealthCare
sales are projected to grow by an average of about 14 percent a year,
putting Bayer in third place by 2017 with sales of some EUR 910 million,
thanks mainly to new product introductions. Examples include the expected
indication expansion for the kidney cancer drug Nexavar™ to include thyroid
and breast cancer, the launch of the colorectal cancer drug Stivarga™ and
riociguat for the treatment of pulmonary hypertension. In the
non-prescription (OTC = over-the-counter) segment, new products include
Supradyn™ multivitamins, along with further presentations of Bepanthen™ for
dermatological and cosmetic applications and Bayer's best-known medicine,
Aspirin™. Other impending product launches are the Contour Plus™ high
accuracy blood glucose monitoring system for patients with diabetes and a
flea and tick collar for pets. 
A further factor for the anticipated growth is the fact that health care
spending as a proportion of GDP is below average compared to other
countries. "To achieve average healthcare expenditure, Russia would need to
increase its spending by 30 percent over today’s levels," Dekkers said.
Life expectancy is increasing and will continue to do so due to government
programs such as Pharma 2020 or the Program for Healthcare Development
2020. However, statistics are also evidence of the need for more and better
health care products. 
Bayer Material Science - which manufactures precursors for high-tech
polymer-based materials and accounted for 20 percent of Bayer's sales in
Russia in 2012 - is experiencing strong growth in its customer industries
like construction, automotive, electrical/electronics and furniture. Sales
at MaterialScience are expected to climb from EUR 149 million in 2012 to
EUR 230 million in 2017, equivalent to an annual growth rate of 9 percent.
"Currently, the per capita usage of plastics materials in Central Europe
and CIS is four times lower than in Western Europe," said Dekkers, pointing
to the potential remaining in the Russian market for the use of modern
materials. Bayer already has substantial market shares in the relevant
customer industries. 
Bayer's CEO also sees major development potential in the markets of Bayer
CropScience, the Group's agricultural business. Last year the CropScience
business in Russia had sales of EUR 93 million, or 13 percent of total
Bayer sales. Revenues are expected to climb to EUR 150 million by 2017,
which would mean an annual growth rate of some 8 percent. Spending for crop
protection products in Russia currently stands at EUR 10 per hectare,
compared with EUR 150 in Germany or EUR 165 in France. "In the face of an
ever increasing population and the growing demand for better food and
nutrition worldwide, a continuous improvement in agricultural productivity
is vital," Dekkers said. With Russia having four times as much agricultural
land as France and six times as much as Germany, "we can easily imagine
that with a slightly more intensive approach, Russian agriculture could
increase its total production significantly." Bayer plans to launch 23 new
crop protection products in the coming years. 
Collaborations and partnerships play a major role in the company's
continuing development in Russia. "These are key factors for increasing
Bayer’s overall visibility, strengthening business opportunities and
supporting the Russian government’s key economic and social development
objectives," explained Dekkers. Tolling cooperations in all subgroups not
only help grow the business but at the same time support local industries.
As an example for cooperations with local universities and institutes in
research and development, the CEO cited the national campaign on the
prevention of cardiovascular disease to be launched together with the
Center of Preventive Medicine. 
Bayer HealthCare has entered into a strategic partnership with local drug
manufacturer Medsintez to jointly manufacture and commercialize diagnostic
imaging products as well as pharmaceuticals, starting with the
anti-infective Avelox™. The Energy Center represents a pool of expertise
from various partners including Bayer in the area of energy saving and
efficiency - fully in line with the Russian government’s objectives, such
as the Energy Strategy 2020. At Bayer CropScience, the Field Academy aims
to create a better understanding of modern technologies by sharing
knowledge that should help farmers in their work and propel the industry
forward. Elaborating on Bayer’s activities in the field of Corporate Social
Responsibility, Dekkers referred to the significance of projects like the
Chemical Olympiad 2013 for science students, the value of providing support
to an orphanage at Noginsk and the importance of the charity fund "Gift of
Life," which helps children with cancer. 
Bayer: Science For A Better Life 
Bayer is a global enterprise with core competencies in the fields of health
care, agriculture and high-tech materials. As an innovation company, it
sets trends in research-intensive areas. Bayer’s products and services are
designed to benefit people and improve the quality of life. At the same
time, the Group aims to create value through innovation, growth and high
earning power. Bayer is committed to the principles of sustainable
development and acts as a socially and ethically responsible corporate
citizen. In fiscal 2012, the Group employed 110,500 people and had sales of
EUR 39.8 billion. Capital expenditures amounted to EUR 2.0 billion, R&D
expenses to EUR 3.0 billion. For more information, go to
http://www.bayer.com. 
Information for editors:
The text of the speech by the Chairman of the Board of Management Dr.
Marijn Dekkers is available on the internet at
http://www.presse.bayer.de/baynews/baynews.nsf/id/2013-1510-e 
Forward-Looking Statements
This release 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 http://www.bayer.com. The
company assumes no liability whatsoever to update these forward-looking
statements or to conform them to future events or developments. 
Contact:
Günter Forneck, Tel. +49 214 30-50446
E-Mail: mailto:guenter.forneck@bayer.com 
This press release is available here:
http://www.baynews.bayer.de/baynews/baynews.nsf/id/2013-0501-e 
Yours BayNews Editorial Team 
Bayer AG
Communications
Building W11
51368 Leverkusen, Germany 
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