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Performance by Subgroup and Segment

Corporate structure

Bayer AG, headquartered in Leverkusen, Germany, is the strategic management holding company for the Bayer Group. Business activities are conducted by the HealthCare, CropScience and MaterialScience subgroups, supported by the service companies Bayer Business Services, Bayer Technology Services and Currenta. There have been no material changes to the Bayer Group’s structure since the 2007 Annual Report.

With the entry of the squeeze-out of the remaining minority stockholders of Bayer Schering Pharma AG in the commercial register on September 25, 2008, Bayer Schering Pharma AG became a wholly owned subsidiary of Bayer AG.

The names “Bayer Schering Pharma” or “Schering” as used in this report always refer to Bayer Schering Pharma AG, Berlin, Germany, or its predecessor, Schering AG, Berlin, Germany, respectively. The reference to Bayer Schering Pharma AG or Schering AG also includes business conducted by affiliated entities in countries outside Germany. Bayer Schering Pharma AG and Schering-Plough Corporation, New Jersey, United States, are unaffiliated companies that have been totally independent of each other for many years.

The commentaries in this report relate exclusively to continuing operations, except where specific reference is made to discontinued operations or to a total value (total).

Sales by Segment, 2008 (2007 in parentheses)

Key Data by Subgroup and Segment
	Sales		EBIT before special items*		EBITDA before special items*		EBITDA margin before special items*
	2007	2008	2007	2008	2007	2008	2007	2008
	€ million	€ million	€ million	€ million	€ million	€ million	%	%
HealthCare	14,807	15,407	2,492	2,764	3,792	4,157	25.6	27.0
Pharmaceuticals	10,267	10,704	1,641	1,835	2,807	3,080	27.3	28.8
Consumer Health	4,540	4,703	851	929	985	1,077	21.7	22.9
CropScience	5,826	6,382	786	1,084	1,324	1,603	22.7	25.1
Crop Protection	4,781	5,339	632	962	1,093	1,397	22.9	26.2
Environmental Science/BioScience	1,045	1,043	154	122	231	206	22.1	19.8
MaterialScience	10,435	9,738	1,117	586	1,606	1,088	15.4	11.2
Systems	7,394	7,130	1,017	670	1,333	1,012	18.0	14.2
Materials	3,041	2,608	100	(84)	273	76	9.0	2.9
Reconciliation	1,317	1,391	(108)	(92)	55	83	4.2	6.0
Continuing operations	32,385	32,918	4,287	4,342	6,777	6,931	20.9	21.1
*for definition see “Calculation of EBIT(DA) Before Special Items”