Glossary

Adalat® Drug product for the treatment of hypertension; active ingredient: nifedipine

Adengo® Herbicide; active ingredients: thiencarbazone-methyl, isoxaflutole; main application: corn

Admire® Insecticide; active ingredient: imidacloprid; main applications: vegetables, rice, fruit, potatoes

Advantage® Flea control product for dogs and cats; active ingredient: imidacloprid

Alemtuzumab Humanized monoclonal antibody, currently being tested in the indication multiple sclerosis (MS)

Aleve® Analgesic; active ingredient: naproxen

Alka-Seltzer® Drug product that binds excess gastric acid and reduces pain and fever

Amikacin Antibiotic for inhalation treatment of pneumonia caused by gram-negative bacteria; active ingredient: amikacin sulfate

Arize® Seed for hybrid rice

Aspirin® One of the most famous analgesics; active ingredient: acetylsalicylic acid

Aspirin® Cardio Drug product for protection against heart attack; active ingredient: acetylsalicylic acid

Asset-backed securities (ABS) ABS are (debt) securities collateralized by a pool of receivables

Atlantis® Herbicide; active ingredients: mesosulfuron and others; main applications: wheat, triticale, rye

Avalox® Drug product for the treatment of respiratory tract infections; active ingredient: moxifloxacin

Avelox® Drug product for the treatment of respiratory tract infections; active ingredient: moxifloxacin

Basta® Herbicide; active ingredient: glufosinate-ammonium; main applications: plantation crops, potatoes and vegetables

Bayblend® Brand name for polymer blends based on polycarbonate and acrylonitrile-butadiene-styrene

BaySystems® Global umbrella brand for the polyurethane systems business

Baytril® Drug for the treatment of severe veterinary infectious diseases; active ingredient: enrofloxacin

Baytubes® Brand name for multi-wall carbon nanotubes

BayVision® Competence brand for automotive glazing

Belt® Insecticide; active ingredient: flubendiamide; main applications: vegetables, cotton, rice, grapes, apples

Bepanthen® Range of skin care and wound-healing products; active ingredient: dexpanthenol

Bepanthol® Range of care products to treat dry, irritated skin; active ingredient: panthenol

Betaferon® Drug product for the treatment of multiple sclerosis; active ingredient: interferon beta-1b

Betaseron® Drug product for the treatment of multiple sclerosis; active ingredient: interferon beta-1b

Breeze® Blood glucose measurement device for people with diabetes for simple, safe and rapid use at home or while traveling

Campath® Humanized monoclonal antibody for the treatment of patients with chronic lymphocytic leukemia

Canesten® Antifungal drug for infections of the skin; active ingredient: clotrimazole or bifonazole

Capital invested (CI) Capital invested comprises the assets on which the company must obtain a return by generating an appropriate cash inflow; in some cases the cost of ultimately reproducing the assets must be earned in addition.

Cash flow return on investment (CFROI) The cash flow return on investment is the ratio of the gross cash flow earned in a period to the capital invested. It is thus a measure of profitability in that period.

Cash value added (CVA) This is the difference between the gross cash flow and gross cash flow hurdle. It is therefore the portion of the gross cash flow that exceeds the return and reproduction requirements. If CVA is positive, the company has created value.

Cipro® Drug product for the treatment of infectious diseases; active ingredient: ciprofloxacin

Ciprobay® Drug product for the treatment of infectious diseases; active ingredient: ciprofloxacin

Citracal® Dietary supplement

Confidor® Insecticide; active ingredient: imidacloprid; main applications: vegetables, rice, fruit, potatoes

Connect® Insecticide; active ingredients: imidacloprid, beta-cyfluthrin; main applications: soybeans, corn, cotton

Contour® Blood glucose measurement device for people with diabetes for simple, safe and rapid use at home or while traveling

Core earnings per share (core EPS) Core earnings per share comprises adjusted core net income divided by the weighted average number of issued ordinary shares (taking into account the potential number of shares resulting from the conversion of the mandatory convertible bond). The adjusted core net income is computed from EBIT plus amortization of intangible assets and write-downs of property, plant and equipment, plus/minus special items, plus/minus non-operating result, plus/minus income taxes, plus/minus tax adjustments, minus income after taxes attributable to non-controlling interests, plus financing costs relating to the mandatory bond after tax effects. Core earnings per share is not an indicator defined in the International Financial Reporting Standards and should therefore be regarded as supplementary information only. The company believes that this indicator gives readers a clearer picture of the results of operations and ensures greater comparability of data over time.

Corporate compliance Corporate compliance comprises the observance of statutory and company regulations on lawful and responsible conduct by the company, its employees and its management and supervisory bodies.

Corporate governance Corporate governance comprises the long-term management and oversight of the company in accordance with the principles of responsibility and transparency. The German Corporate Governance Code sets out basic principles for the management and oversight of publicly listed companies.

Corvus® Herbicide; active ingredients: thiencarbazone-methyl, isoxaflutole; main applications: corn, cereals

Credit default swaps (CDS) Credit default swaps are financial instruments that permit the trading of credit risks. They are essentially tradable insurance contracts used to hedge against the default of a borrower or similar credit instruments.

CropStar® Insecticide; active ingredients: imidacloprid and thiodicarb; main application: seed treatment in corn

Decis® Insecticide; active ingredient: deltamethrin; main applications: cotton, vegetables, cereals

Delta cash value added Delta CVA is an indicator of the change in the cash value added between two periods. A positive delta CVA shows that a unit has created more value or destroyed less value compared with the reference period.

Desmodur® Brand name for various isocyanates

Desmopan® Brand name for thermoplastic polyurethanes

Desmophen® Brand name for various polyesters and polyols used in the formulation of polyurethanes

Diane® Acne therapy with additional contraceptive action; active ingredients: cyproteronacetate and ethinyl estradiol

Drontal® product line Dewormers for dogs and cats; active ingredients: combinations of praziquantel, pyrantel and febantel

Earnings before interest and taxes (EBIT) EBIT comprises the operating profit of a company before deduction of the non-operating result and taxes. In Bayer’s Annual Report EBIT is the operating result shown in the income statement.

Earnings before interest, taxes, depreciation and amortization (EBITDA) EBIT plus amortization of intangible assets and depreciation of property, plant and equipment. EBITDA, underlying EBITDA and the underlying EBITDA margin are not defined in the International Financial Reporting Standards. The company considers EBITDA before special items to be a more suitable indicator of operating performance since it is not affected by depreciation, amortization, write-downs/write-backs or special items. The company also believes that this indicator gives readers a clearer picture of the results of operations and ensures greater comparability of data over time.

Earnings per share (EPS) EPS is calculated by dividing Group net income by the weighted average number of shares as defined in IAS 33.

EBITDA margin (Underlying) The (underlying) EBITDA margin is calculated by dividing EBITDA (before special items) by sales

EMTN and multi-currency EMTN program The Euro Medium Term Note (EMTN) program is a documentation platform that enables Bayer to raise capital by quickly issuing debt on the European capital market. Securities issued under this program may be listed in Luxembourg or unlisted. Their maturities, currencies and conditions may vary considerably.

Fandango® Fungicide; active ingredients: fluoxastrobin and prothioconazole; main application: cereals

Flint® Fungicide; active ingredient: trifloxystrobin; main applications: cereals, soybeans, fruit

Folicur® Fungicide; active ingredient: tebuconazole; main applications: cereals, soybeans, canola, peanuts

Gadovist® Contrast agent for MRI of the central nervous system that enables the number and location of lesions to be displayed in patients with brain metastases or multiple sclerosis (MS); active ingredient: gadobutrol

Gaucho® Insecticide; active ingredient: imidacloprid; main applications: seed dressing for sugar beet, corn, cereals, cotton, canola

Global commercial paper program Commercial paper is a short-term unsecured debt instrument normally issued at a discount and redeemed at nominal value. It is a flexible way of obtaining short-term funding on the capital markets. Bayer’s commercial paper program allows the company to issue commercial paper on both the U.S. market and the European market.

Glucobay® Drug product for the treatment of diabetes; active ingredient: acarbose

Gross cash flow The gross cash flow comprises income from continuing operations after taxes, plus income taxes, plus/minus non-operating result, minus income taxes paid or accrued, plus depreciation, amortization and write-downs, minus write-backs, plus/minus-changes in pension provisions, minus gains/plus losses on retirements of noncurrent assets, plus non-cash effects of the remeasurement of acquired assets. The change in pension provisions includes the elimination of non-cash components of the operating result (EBIT). It also contains benefit payments during the year.

Gross cash flow hurdle The GCF hurdle is the cash amount that must be generated in light of the respective asset situation in order to satisfy investors’ return and reproduction requirements.

HDI Hexamethylene diisocyanate, a raw material for polyurethane coatings

Huskie® Herbicide; active ingredients: pyrasulfotole, bromoxynil and mefenpyr; main application: cereals

Hussar® Herbicide; active ingredient: iodosulfuron; main application: cereals

Hybrid bond A hybrid bond is an equity mezzanine corporate bond, usually with either no or very long maturity. Due to its subordination, issuer bankruptcy can lead to a complete financial loss.

Infinity® Herbicide; active ingredient: pyrasulfotole; main application: cereals

Input® Fungicide; active ingredients: prothioconazole, spiroxamine; main application: cereals

InVigor® Seed for summer canola

Iopamiron® Non-ionic intravascular contrast agent for all common X-ray analyses

Key performance indicators (KPI) Central indicators used to evaluate the attainment of targets in the company.

Kid Way® Herbicide; active ingredients: diflufenican, glyphosate, oxadiazon; main application: landscaping

Kogenate® Drug product for the treatment of hemophilia; active ingredient: recombinant Factor VIII

Kontos® Insecticide; active ingredient: spirotetramat; main application: cultivation of ornamental plants by breeders and garden centers

K-Othrine® Insecticide; active ingredient: deltamethrin; main applications: insects that transmit malaria, sleeping sickness and Chagas' disease

Laudis® Herbicide; active ingredient: tembotrione; main application: corn

Levitra® Drug product for the treatment of erectile dysfunction; active ingredient: vardenafil

Liberty® Herbicide; active ingredient: glufosinate-ammonium, main applications: corn, canola, cotton, soybeans, rice in conjunction with herbicide-tolerant technology

Life sciences Field of activities comprising particularly health care and nutrition; at Bayer this refers to the activities of the Bayer HealthCare and Bayer CropScience subgroups.

Lyttron® Subsidiary of Bayer MaterialScience that develops, produces and markets electroluminescent polycarbonate films

MabCampath® Humanized monoclonal antibody for the treatment of patients with chronic lymphocytic leukemia

Magnevist® Contrast agent for diagnosis in the central nervous system and body; active ingredient: dimeglumine gadopentetate

Makroblend® Brand name for polymer blends made from polycarbonate and polybutylene terephthalate or polyethylene terephthalate

Makrofol® Brand name for films made from Makrolon®

Makrolon® Brand name for polycarbonate

MDI Diphenylmethane diisocyanate, an important raw material for polyurethane rigid foam used in thermal insulation

Merit® Insecticide; active ingredient: imidacloprid; main applications: broad-spectrum insecticide for non-agricultural grass lawns

Mirena® Intrauterine contraceptive; active ingredient: levonolgestrel

Movento® Insecticide; active ingredient: spirotetramat; main applications: vegetables, fruit including grapes, cotton and soybeans

Nativo® Fungicide; active ingredients: trifloxystrobin, tebuconazole; main applications: soybeans, corn, rice, cereals

Net cash flow The net cash flow is the cash flow from operating activities as defined in IAS 7.

Nexavar® Drug product to treat kidney and liver cancer; active ingredient: sorafenib

Oberon® Insecticide; active ingredient: spiromesifen; main applications: fruit, vegetables, cotton

One-A-Day® Multivitamin product

Over the counter (OTC) The trading of securities outside of an organized exchange. OTC transactions are still subject to the statutory provisions on securities trading. In the HealthCare business, OTC refers to non-prescription medication.

PET Abbreviation for polyether, one of the two main components used in the production of polyurethane along with isocyanates

Pistol® Herbicide; active ingredients: diflufenican, glyphosate; main application: landscaping

Poncho® Insecticide; active ingredient: clothianidine; main applications: seed treatment for corn, canola, sugar beet, cereals

PPA Purchase price allocation

Premise® Insecticide; active ingredient: imidacloprid; main application: termite control

Price/cash flow ratio The price/cash flow ratio is the ratio of the share price to gross cash flow per share. It shows how long it would take for the company’s cash flow to cover the share price.

Price/EPS This is the ratio of the current share price to earnings per share. A high price/EPS ratio indicates that the market assigns a high value to the stock in the expectation of future earnings growth.

Proline® Fungicide; active ingredient: prothioconazole; main applications: cereals, canola

Prosaro® Fungicide; active ingredients: prothioconazole, tebuconazole; main applications: cereals, canola

Puma® Herbicide; active ingredient: fenoxaprop-P-ethyl; main applications: cereals, rice, soybeans, canola

Raxil® Fungicide; active ingredient: tebuconazole; main applications: seed treatment for wheat and barley

Recothrom™ A recombinant form of human thrombin applied topically to stop bleeding during surgery; active ingredient: recombinant human thrombin

Rely® Herbicide; active ingredient: glufosinate ammonium; main applications: canola, soybeans, corn, cotton, fruit, nuts

Renalzin® Dietary supplement to support kidney function in cats with chronic kidney failure; active ingredients: Lantharenol® (lanthanum carbonate octahydrate), kaolin, vitamin E

Rennie® Medicine to treat heartburn and acid-related stomach disorders; active ingredients: calcium carbonate and magnesium carbonate

Riociguat Riociguat Drug product from a new class of vasodilative substances; stimulates the enzyme soluble guanylate cyclase and is currently being tested in a Phase III program to determine its efficacy and safety in the treatment of chronic thromboembolic pulmonary hypertension and pulmonary arterial hypertension; active ingredient: soluble guanylate cyclase stimulator

Soberan® Herbicide; active ingredient: tembotrione; main application: corn

Sphere® Fungicide; active ingredients: trifloxystrobin and cyproconazole; main applications: soybeans, cereals, sugar beet, coffee

Squeeze-out Transfer of the shares held by minority stockholders in a stock corporation to the majority stockholder in return for a compensation payment. In Germany, a majority stockholder with an interest of 95 percent can request a squeeze-out.

Stratego® Fungicide; active ingredients: trifloxystrobin, propiconazole; main applications: soybeans, cereals, rice, corn

Supradyn® Vitamin and mineral supplement with trace elements

Syndicated credit facility Credit line agreed with a group of banks. Generally used for extensive financing requirements, such as when making an acquisition, to increase the available liquidity reserves or as security for the issuance of debt instruments. The credit facility can be utilized and repaid flexibly, either in full or in portions, during its term.

TDI Toluene diisocyanate, an important raw material for polyurethane flexible foam used in upholstery, mattresses and car seats

Temprid® Insecticide; active ingredients: imidacloprid, beta-cyfluthrin; main application: ant and pest control in non-agricultural settings

Ultravist® Contrast agent for X-ray examinations including computer tomography; active ingredient: iopromide

VEGF Trap-Eye VEGF (vascular endothelial growth factor) is a natural growth factor that is also involved in the pathological formation of new blood vessels in the eyes, which leads to wet age-related macular degeneration (AMD). VEGF Trap-Eye specifically inhibits this process and other growth factors and is currently undergoing Phase III clinical testing.

Visanne® Drug product for the treatment of endometriosis; active ingredient: dienogest

Vulkollan® Brand name for a high-performance polyurethane elastomer

Weighted average cost of capital (WACC) The weighted average cost of capital (WACC) represents the return required by investors on the capital invested in the company. It is computed as a weighted average of the cost of equity and debt. The cost of equity correlates with the return expectations of stockholders while the cost of debt comprises the conditions obtained by the company for its long-term financing.

World-scale production facility Extremely large production plant whose capacity allows the realization of substantial economies of scale.

Xarelto® Direct Factor Xa inhibitor in tablet form. The active ingredient rivaroxaban is used to prevent and treat thrombosis in a wide range of indications and is registered in the European Union and other regions as Xarelto® for the prophylaxis of venous thromboembolism (VTE) in adults following elective hip and knee joint replacement surgery.

Yasmin® Oral contracaptives; active ingredients: ethinyl estradiol and drospirenone

Yasminelle® Oral contracaptives; active ingredients: ethinyl estradiol and drospirenone

YAZ® Oral contracaptives; active ingredients: ethinyl estradiol and drospirenone

Zetia® Cholesterol-lowering drug from Schering-Plough marketed jointly in Japan with Bayer; active ingredient: ezetimib

Zevalin® An yttrium-90 labeled monoclonal antibody being developed as radioimmunotherapy in Non-Hodgkin´s lymphoma; active ingredient: ibritumomab tiuxetan