Bayer's performance continued to grow strongly in

Bayer's performance continued to grow strongly in the second quarter of 2014

· sales of all sub groups increased

· Group sales reached 10.458 billion euros (an increase of 0.9%, an increase of 6.3% after the adjustment of exchange rate and portfolio)

· EBITDA increased by 14.5%, reaching 1.473 billion euros

· EBITDA excluding special items increased by 1%, Up to EUR 2.217 billion - despite the adverse currency impact of 7%)

· net income increased by 13.3% to EUR 953 million

· core earnings per share was EUR 1.53 (0.6% lower than the baptism in the hands of producers last year)

· the group confirmed its expectations for 2014

Leverkusen, July 30, 2014 - Bayer Group was successful again in the second quarter of 2014. "In particular, our life science business has maintained a good momentum of development and achieved gratifying sales performance with the recent launch of prescription drug products and the development of crop science business in North America and Latin America," said Dr. Malkin dykes, chairman of the management board, when the company released its interim report on Wednesday. Despite the adverse currency impact on earnings growth again, we have achieved good business development. Excluding special items, EBITDA and core earnings per share were unchanged from last year. Dr. dykes confirmed Bayer Group's expectations for this year. Dykes said that Bayer's progress in the second quarter was due to its strategic thinking and the expected merger and acquisition of Merck's public health business. "This acquisition will greatly enhance our public health business," dykes said

Bayer Group's sales in the second quarter of 2014 increased by 0.9% to 10.458 billion euros (2013 second quarter: 10.36 billion euros). After the adjustment of exchange rate and asset portfolio (after the adjustment of exchange rate and asset portfolio), the sales increased by 6.3%. EBIT increased by 14.5% to 1.473 billion euros (the second quarter of 2013: 1.287 billion euros), and the net amount of special projects increased by 48 million euros (the second quarter of 2013: 256 million euros). EBIT excluding special items decreased by 1.4% to € 1521 million (Q2 2013: € 1543 million). Despite the adverse currency impact of about 160million euros (about 7%), excluding the additional R & D costs of about 70million euros, EBITDA excluding special projects increased by 1% to 2.217 billion euros (second quarter 2013: 2.195 billion euros). Net income increased by 13.3% to 953 million euros (second quarter of 2013: 841 million euros), and core earnings per share was unchanged from the previous year at 1.53 euros (second quarter of 2013: 1.54 euros)

in the second quarter of 2014, total cash flow increased by 1.5% to 1.705 billion euros (second quarter of 2013: 1.68 billion euros), which is due to the growth of EBITDA excluding special items. Meanwhile, net cash flow increased by 4.2% to 1.601 billion euros (second quarter 2013: 1.536 billion euros). Net financial debt increased from € 9.1 billion at 31 March 2014 to € 9.9 billion at 30 June 2014

healthcare sub group was mainly due to the recent launch of prescription drug products

the sales of healthcare in the second quarter increased by 0.9% (6.3% after the adjustment of exchange rate and asset portfolio), reaching 4.845 billion euros (second quarter 2013: 4.8 billion euros). "This growth continues to be driven by our recently launched prescription drug products, while the sales of the public health sector are only slightly higher than the same period last year," dykes said Sales growth in emerging markets is above average

the sales of prescription drugs business increased by 10% (after the adjustment of exchange rate and asset portfolio), reaching 2.96 billion euros. This remarkable performance is mainly attributed to the recently launched product: the anticoagulant drug beretol ™、 Ophthalmic drug eylea ™、 Anticancer drug stivarga ™、 Xofigo ™ Adepas, a drug used to treat pulmonary hypertension ™， The combined sales of these products amounted to 702million euros (second quarter 2013: 339 million euros). Bereto alone achieved a 79.3% increase in currency adjusted sales (adjusted for exchange rates)

among prescription drug products, the sales of hormone releasing intrauterine device manyuele increased by 13.1% (adjusted by exchange rate), and the drug biaspirin used for secondary prevention of heart disease ™ An increase of 8.9% (adjusted by exchange rate). Anticancer drug dojimei ™ Sales increased by 3.4% (adjusted for exchange rates). But the coagulant baikoch ™ Sales decreased by 16.8% (adjusted by exchange rate), mainly due to the shortage of products caused by the production capacity being used to develop the next generation of hemophilia drugs. Betaferon, a drug for multiple sclerosis ™/Betaseron ™ Sales fell by 15.8% (adjusted for exchange rates), still due to increased competition in the United States. Due to the competition of generic drugs, oral contraceptive Yaz ™/Yasmin ™/Yasminelle ™ The increase in sales in the United States can only partially offset the decline in sales in Western Europe. The sales of these products decreased by 3.3% (adjusted by exchange rate)

the sales volume of public health business in the second quarter was slightly higher than that of the same period last year (after the adjustment of exchange rate and portfolio), up 1.1% to 1.885 billion euros. Skin care products Bepanthen ™/Bepanthol ™ With dietary supplement supradyn ™ The growth was strong, with an increase of 22.4% (exchange rate adjusted) and 7.8% (exchange rate adjusted) respectively, but the sales of painkiller aspirin decreased by 9% (exchange rate adjusted), mainly due to the weak cold season in Europe. In the health care business where the low temperature range of medical experiments is between 0 and (6) 0 ℃, the performance of diabetes health care business in the United States continues to decline due to the reduction of the selling price. Contour ™ The sales of series blood glucose meters decreased by 13.9% (adjusted by exchange rate). The sales of contrast agents and medical devices in imaging and interventional business were flat compared with the same period last year (after exchange rate and portfolio adjustment). The growth of animal health business is encouraging

despite the adverse exchange rate impact of about 120million euros (about 9%), the EBITDA excluding special items of healthcare increased by 2% to 1.355 billion euros (second quarter of 2013: 1.328 billion euros). Such growth is attributed to the excellent commercial development of prescription drugs and the efficiency improvement of medical care

overall growth in crop science

sales of agricultural related businesses (Crop Science) increased by 3.3% (10.5% after exchange rate and portfolio adjustment), reaching 2.47 billion euros (second quarter 2013: 2.392 billion euros). "Crop protection/seeds and environmental science have jointly contributed to this gratifying progress," dykes said. Our business benefits mainly from strong sales in North America and Latin America. Sales of the crop sciences sub group in Latin America/Africa/the Middle East increased by 20.7% (exchange rate adjusted) and 18.5% (exchange rate adjusted) in North America. The Asia Pacific region also saw significant growth (8.2% in exchange rate adjustment), while sales in Europe were flat with the same period last year (0.7% in exchange rate adjustment)

all business segments of crop protection have made positive progress, among which new products launched since 2006 have played a key role. Fungicides (increased by 11.2% after exchange rate and portfolio adjustment), pesticides (increased by 11.5% after exchange rate and portfolio adjustment) and seed treatment (increased by 20.5% after exchange rate and portfolio adjustment) businesses all achieved double-digit growth. Herbicide sales increased steadily (6% after exchange rate and portfolio adjustment). The business of the seed Division also achieved significant growth (an increase of 15.9% after the adjustment of exchange rate and asset portfolio). Based on the strong earnings of retail business, environmental science sales successfully increased by 7.8% (after exchange rate and portfolio adjustment)

EBITDA excluding special items was € 615 million, down from 1.4% in the same period last year (Q2 2013: € 624 million). The substantially increased sales and selling prices have led to business expansion, which has brought good revenue. However, this did not completely offset the adverse currency impact of about € 40million (about 6%), as well as the increase in marketing costs and R & D expenses

material technology sales increased

in the second quarter, the sales of high-tech polymer materials business (material technology) reached 2.864 billion euros, unchanged from the same period last year (second quarter 2013: 2.875 billion euros). After adjusting for the impact of currency and portfolio, sales increased by 3.6%. "This growth is due to the substantial increase in sales of polycarbonate, polyurethane, coatings, adhesives and special chemicals," dykes explained. Sales growth in North America, Europe and Asia Pacific far offset the decline in Latin America/Africa/Middle East. Sales prices in all regions are lower than the same period last year

the sales of foam raw material (polyurethane) increased by 3% (after the adjustment of exchange rate and asset portfolio), which was due to the improvement of the industry demand of all major customers. Sales of high-tech plastics (polycarbonate) increased significantly by 8.3% (after exchange rate and portfolio adjustment), mainly due to the growth of customer demand in the automotive and electrical/electronic industries. The coatings, adhesives and special chemicals business increased by 3.7% (after exchange rate and portfolio adjustment), resulting from the increase in sales in almost all regions

EBITDA of materials technology excluding special items increased by only 1.5%, lower than the same period last year, reaching 270 million euros (second quarter of 2013: 274 million euros). This growth is due to higher sales, lower raw material prices and improved efficiency. The adverse factors are the decline in sales prices and the cost of planned maintenance and shutdown in Asia and North America. The negative monetary impact of about 10million euros (about 3%) also constrained earnings

strong growth in revenue in the first half of 2014

Bayer Group's sales and EBITDA excluding special items increased in the first half of 2014. Each sub group has achieved steady growth. Sales increased by 1.9% (7.3% after exchange rate and portfolio adjustment) to € 21.013 billion (H1 2013: € 20.626 billion). EBIT increased by 16.7% to EUR 3.569 billion (H1 2013: EUR 3.058 billion). EBITDA excluding special items increased by 6.6% to 4.955 billion euros (first half of 2013: 4.648 billion euros), with an adverse currency impact of about 360million euros and an increase in research and development costs of about 170million euros. Net income increased significantly by 18.7% to EUR 2.376 billion (H1 2013: EUR 2.001 billion). Core earnings per share increased by 7.4% to € 3.48 (H1 2013: € 3.24)

adjustment of the assumed exchange rate in 2014

"in view of our good operating performance, we very much agree with the guiding policies previously formulated by the group," Dr. dykes said. Exchange rate assumptions have been adjusted to reflect current changes. For the second half of 2014, Bayer is using the current exchange rate on June 30, 2014 (previously the average exchange rate of the fourth quarter of 2013). As a result, the impact of adverse currencies on sales and earnings increases. This expectation does not consider the planned acquisition of OTC business of Merck and Dianhong pharmaceutical group or withdrawal of investment from interventional equipment business. Bayer expects these transactions to close in the second half of 2014

the group is currently planning to achieve a 6% increase in sales (after exchange rate and portfolio adjustment) (previously: about 5%). Considering the impact of about 4% of the adverse currency (before: about 2%), Bayer currently expects the group's sales to be about 41billion euros (before: about 41billion euros) compared with the previous year