Page 1 Bayer CropScience Increase of productivity in Agriculture
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1 Bayer CropScience Increase of productivity in Agriculture Dr. F. Zurmühlen Frankfurt Page 1 Bayer CropScience Increase of productivity in Agriculture
2 114,928 employees Full year sales: 40.2 billion 289 subsidiaries R&D expenditures: 3.2 billion As of December 31, 2013 / Employees: March 31, 2014 Page 2 Bayer CropScience Increase of productivity in Agriculture
3 At Bayer CropScience, we serve agriculture 22,400 employees Full year sales: 8,819m > 120 countries As of December 31, 2013 Page 3 Bayer CropScience Increase of productivity in Agriculture
4 We offer innovative agricultural solutions in three business segments Seeds Vegetable seeds Seeds for agricultural crops (e.g. cotton, canola, rice, wheat, soybean) Traits Crop Protection* Insecticides Fungicides Herbicides SeedGrowth Environmental Science Products for professional users (pest and vegetation management) Products for consumers (home and garden use) *with both chemical and biological modes of action Page 4 Bayer CropScience Increase of productivity in Agriculture
5 GLOBAL FOOD PRODUCTION POPULATION GROWTH 7 billion people on the planet today CHANGING CONSUMPTION PATTERNS By % 9.6 billion people in 2050 Increasing demand for protein Need for a sustainable productivity increase HUNGER WEATHER FLUCTUATIONS :322 kg rice per hectare +1 C Yields under pressure HECTARES OF FARMLAND PER CAPITA 1950 : : : 0.15 INSUFFICIENT STORAGE Up to 40% of fruit and vegetables lost in India Equivalent to the annual consumption in UK 1 in 8 goes hungry today Page 5 Bayer CropScience Increase of productivity in Agriculture
6 Innovation in Crop Protection is vital to safeguard harvests and secure food supply... Major crops analyzed: rice, wheat, barley, corn, potatoes, soybeans, cotton and coffee Prevented losses Today 58% Actual losses Due to pests, weeds and diseases 42% 100% 30% By pests, weeds and diseases 28% Yield without crop protection Actual yield with crop protection Theoretically attainable yield Without crop protection, nearly half of the current harvest would be lost Through innovations and adequate use of crop protection solutions, total yield could be almost doubled Source: Oerke et al., Crop Production and Crop Protection, Elsevier, Amsterdam, 1994 Page 6 Bayer CropScience Increase of productivity in Agriculture
7 Serving the interconnected needs of the food value chain Growers Traders Processors Retailers Consumers Proactive approach to the meet increasing demand for sustainably produced food Connecting the partners across the value chain and facilitating mutually beneficial business relationships for all involved creating winawin situations More than 240 business initiatives in about 30 countries and 40 crops worldwide proven concept since 2007 Page 7 Bayer CropScience Increase of productivity in Agriculture
8 Working together for sustainable agriculture: examples of Food Chain Partnerships Teaming up with UNIVEG and partners Creating a grower:to:grocer sustainability trail, increasing the export potential for table grapes, e.g. from India and Brazil Global collaboration with PepsiCo Focusing on sustainable production and traceability of high:quality crops for PepsiCo and its contract farmers Cooperation with Walmart and partners Working together to enhance quality and safety as well as trace:ability of vegetables in Chile Page 8 Bayer CropScience Increase of productivity in Agriculture
9 2.4 billion Euros earmarked for capacity expansion program from 2013 to 2016 CAPEX* in m EUR *Tangible assets excl. capital interest Revised CAPEX planning bn EUR compared to CAPEX planning 2012 Published CAPEX planning bn EUR in capital expenditures Page 9 Bayer CropScience Increase of productivity in Agriculture
10 Our plan to further expand supply capacities reflects strong demand for our products Selected capital expenditure projects Frankfurt, Germany Knapsack & Frankfurt, Germany Dormagen, Germany Kansas City, Kansas, USA Vapi, India Muttenz, Switzerland Tlaxcala, Mexico Mobile, Alabama, USA We are lifting our supply chain capacity to a higher level Page 10 Bayer CropScience Increase of productivity in Agriculture
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