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Investor Conference Call Presentation: Crop Science R&D Pipeline Update

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Bayer
Bayer

Presentation for Bayer's Investor Conference Call on February 13, 2020: Crop Science R&D Pipeline Update

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/////////// FEBRUARY 13, 2020 Delivering World Class Innovation Crop Science R&D Pipeline Update
Biotechnology & Genome Editing Highlights – Jeremy Williams, Ph.D. Head of Plant Biotechnology, Crop Science R&D Crop Protection Highlights – Axel Trautwein, Ph.D. Head of Small Molecules, Crop Science R&D Digital Farming Highlights – Sam Eathington, Ph.D. Climate Chief Science Officer Breeding Highlights – Mike Graham, Ph.D. Head of Breeding, Crop Science R&D Investment & Advancements – Bob Reiter, Ph. D. Head of R&D, Crop Science Division Agenda /// Bayer Crop Science R&D Pipeline Update /// February 13, 20202 Small Molecules Axel Trautwein Plant Biotechnology Jeremy Williams Sam Eathington Digital Farming Opening Comments – Liam Condon President of the Crop Science Division President, Crop Science Liam Condon Breeding Mike Graham Head of R&D, Crop Science Bob Reiter
Forward-Looking Statements This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer 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. /// Bayer Crop Science R&D Pipeline Update /// February 13, 20203
The World Needs More Innovation in Agriculture 4 Source: FAO 2017, The Future of Food and Agriculture * By 2050 Demand 50% More food, feed & biofuel* needed World population* 10bn~ More meat in developing nations* needed 70% Supply 17% Harvest losses* Ha of agricultural land loss annually 12m reduction in arable land per capita* 20% 2017 2050 natural resources Need to produce significantly more while protecting /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020
As the Industry Leader Uniquely Positioned to Create Value through Innovative Tailored Solutions Shaping Agriculture to Benefit Farmers, Consumers and Our Planet 5 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020 We seek to deliver world-class innovation, new standards in sustainability and pioneer a digital transformation in agriculture to feed a growing global population Digital Ag Crop Protection Seed & Traits Tailored Solutions
/// Bayer Crop Science R&D Pipeline Update /// February 13, 20206 Producing Better The history of corn production plot demonstrates the great strides we have made in producing more with less, and the opportunity we have to continue to “produce better” through tailored solutions that drive us toward our reduced environmental impact commitment while meeting the needs of a growing population on an increasingly hotter planet. Future 2019 2018 2000 1980 1940 =10Bushel Yield Each Plot
Climate-smart practices: No-tillage Highly Productive Crops Cover Crops Precision Agriculture Optimize use of synthetic fertilizers through the use of microbes Bayer’s Sustainability Commitments by 2030 Enhancing Sustainability and Biodiversity in Agriculture /// Bayer Crop Science R&D Pipeline Update /// February 13, 20207 Produce higher-yielding crops with fewer natural resources and inputs . Advancing a carbon-zero future for agriculture through helping our customers reduce field greenhouse gases by crop production. Empower 100 million smallholder farmers 30 Climate FieldView for precision application of pesticides /fertilizers Resistant traits help to reduce pesticide use Develop crop protection products with lower environmental impact Enhancing social innovation (e.g. with Better Life Farming) Digital transformation with FarmRise Introduce new, higher-yielding, resource efficient rice hybrids Reduction in field greenhouse gases emitted per kg of crops produced 30Reduction in impact on the environment 100Smallholders benefit e.g. from access to education, tailored solutions & partners
Shaping the Future of Agriculture with Most Productive Innovation Platform in the Industry Unmatched Investment in R&D Powers Industry-Leading Profitability 8 #1 R&D Platform in Crop Science >7,800 R&D employees2 in >50 countries >20 large-scale R&D centers Partner of choice Technology provider to the industry 1 Pro-forma estimates based on company information and internal calculations for BASF and Bayer. Amounts are from 2018 for Bayer and BASF, 2019 reported R&D for Corteva and is a 2018 proforma estimate derived from company reports for the newly formed Syngenta Group. The Syngenta Group estimate does not consider Sinochem R&D. Bayer Pro-forma figures consider Monsanto acquisition and related divestments. 2 Includes permanent and temporary employees 2.3 1.2 1.0 0.9 Bayer Crop Science Syngenta Group Corteva BASF Ag Seed & Traits AgChem Ag R&D Investment (€bn)1 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020
Enabling Innovation and Effective Delivery on Industry-Leading Pipeline Leveraging Open Model for Incremental and Disruptive Innovation 9 Driving transformation towards next level data driven R&D organization Open Innovation Model Technology Collaborations Venture Capital Universities & Research Institutes Customer-sponsored Research Grants4TraitsTM Grants4TargetsTM Crowdsourcing /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020 Genome-editing Next generation biological science Precision breeding Drone application technology New modalities for crop protection Annual germplasm upgrades New modes of action in weed, insect and disease control through biotech and crop protection New formulations and uses in crop protection to expand spectrum and crops Incremental Innovation Disruptive Innovation
>95m paid acres in U.S.A., Latin America and Europe represents industry’s leading platform reach #1database of grower and field trial seed performance data in the industry Data Science 30-60 molecules selected for field trials a year Expect >100 new formulations to launch in the next decade Strong discovery platform for molecules with new modes-of-action and differentiated profiles Chemistry Biologicals Best positioned to discover, combine and tailor solutions for growers Seeds & Traits Crop Protection Digital Ag++ Reach >350m acres annually >20 new and next- generation traits in development Biotech Leading germplasm libraries >1.7Tcalculations in cloud-based algorithms >3,200 unique field testing locations Breeding Continued Investment in Data Science and New Technologies are Driving Future Opportunity Next Growth Opportunity: Convergence of Leading R&D Platforms /// Bayer Crop Science R&D Pipeline Update /// February 13, 202010 ~80m acres of commercial products reached annually in row crops 170,000 microbes in collection >10,000 microbes screened in vitro and in planta annually
Converting Investment into Meaningful Products for Farmers Driving the Largest and Most Valuable R&D Pipeline in Ag /// Bayer Crop Science R&D Pipeline Update /// February 13, 202011 New hybrids and varieties commercialized New crop protection formulations advanced450+ 20 1 Represents non-risk adjusted estimated peak sales for the combined breeding, biotech, crop protection and environmental science pipelines. 2.Includes 8 biotech, 4 breeding, 5 chemistry and 18 data science advancements. Value of Up to €30bn in Peak Sales1 Horticulture ~€3-4bn ~€11-14bn Soybean ~€6-8bn Cereals & Other ~€3-4bn ~45% Incremental Corn Productive and Prolific Pipeline in 2019 Advancements2 generated by projects in seed & traits, crop protection and digital ag pipelines 35 Breeding Chemistry Data Science Biologicals Biotech Seeds & Traits Crop Protection Digital Ag
New Non-Selective PPO Herbicide2 New Mode of Action Herbicide Fox Supra (Indiflin®) for Soybeans2 (isoflucypram) for Cereals (tetraniliprole) for Corn, Rice, Horticulture and Other Crops Insecticides 3rd, 4th and 5th Generation Herbicide Tolerance Traits Short Stature Corn Hybrids/TraittraitFieldView Seed Advisor 4th and 5th Generation Herbicide Tolerance TraitsFieldView Seed Placement Soybeans Corn Herbicides Key Product Highlights Featured Represent >€22bn3 of Peak Sales Potential Advancing Agriculture with a Decade of Transformative Products /// Bayer Crop Science R&D Pipeline Update /// February 13, 202012 Expected Ongoing Refreshment New Formulation Launches in the next Decade20+ New Formulation Launches in the next Decade20+ New Varieties Commercialized Annually150+ New Hybrids Commercialized Annually150+ New Formulation Launches in the next Decade35+ 1 Subject to regulatory approvals and pending registrations. Represents a subset of the pipeline. Launches are all approximates. 2 In collaboration with Sumitomo. 3. Internal estimate; ~45% of the peak sales potential is incremental Select Planned Product Launches1 2020 20302021 202920282022 //2023 2027 Lygus & Thrips Control Cotton Trait 3rd Gen BioRise Microbial Seed TreatmentOther, Vegetables, Environmental Science, Seed Growth Vegetable Hybrids/Varieties Commercialized Annually New Formulation Launches in the next Decade ~150 20+ Fungicides FieldView Advanced Seed Scripting Novel Mite Solution New Fungicide for Asian Soybean Rust New Soybean Selective Herbicide Mixtures New Autumn Herbicides for Cereals
Expect to Commercialize >150 Corn Hybrids a Year to Drive Growth in €4.8bn2 Corn Seed & Traits Sales Advanced Breeding Underpins Leadership in Corn Seed & Traits /// Bayer Crop Science R&D Pipeline Update /// February 13, 202013 Mexico Avg. bu/ac advantage1 >5 # 1Market Pos. Brazil Avg. bu/ac advantage1 >10 # 1Market Pos. Argentina Avg. bu/ac advantage1 >10 # 1Market Pos. South Africa Avg. bu/ac advantage1 >5 Market Pos. # 1 Europe Avg. bu/ac advantage1 3-4 Market Pos. # 2United States Avg. bu/ac advantage1 7-10 Market Pos. # 1 1 Range is either less than or inclusive of the current 3-year average yield advantage based on a comparison of yield data from new Bayer Crop Science products in their year of deployment against competitive market leaders for said region or country. Averages weighted in countries/regions by hybrid market size and exclude non-grain market. 2 2018 proforma sales
/// Bayer Crop Science R&D Pipeline Update /// February 13, 202014 Corn Product Design Center Marana, AZ
/// Bayer Crop Science R&D Pipeline Update /// February 13, 202015 Two Approaches to Short Stature Corn Advance Biotech: ADVANCED TO PHASE 3 In collaboration with BASF, uses transgene to shorten internodes; enables applicability across wide-array of germplasm. Breeding: ADVANCED TO PHASE 3 Advanced breeding used to introgress naturally occurring short stature characteristic into elite germplasm. commercial beta in Mexico in 2020 Genome Editing: DISCOVERY Multiple, elegant approaches to generate short-stature corn, creating potential for opportunities in multiple markets. Genome Editing Reveals Promising Third Option Three Development Approaches to Short Stature Corn Provide Options to Access Multiple Markets NEW!
/// Bayer Crop Science R&D Pipeline Update /// February 13, 202016 Short Stature Corn Field Trial Sinaloa, MX Winter 2017/2018
Benefits Include Plant Stability, Late Season Applications of Crop Inputs and Efficient Use of Key Nutrients Short Stature Corn Offers Transformational Shift in Production /// Bayer Crop Science R&D Pipeline Update /// February 13, 202017 Acre Opportunity ExpandingReduced Crop Loss Enabled by improved plant stability and lodging tolerance Reduces crop loss from challenging environmental conditions Annual yield losses due to stalk lodging in the U.S. range from 5% to 25%1 Precision of Crop Input Applications Extended in-season crop access due to shorter height Supports tailored solutions with precise in-season crop protection Increased Environmental Sustainability Potential to optimize use of key nutrients like nitrogen, as well as reducing land and water requirements Potential Global Opportunity Across >220m Corn Acres Americas Alone Account for 140m Acres 1 Purdue University (https://www.extension.purdue.edu/extmedia/ay/ay-262.html)
Tools and Capabilities Build on Existing Core Competencies to Usher in New Benefits in the Next Decade Well Positioned to Create Value in Ag with Genome Editing /// Bayer Crop Science R&D Pipeline Update /// February 13, 202018 Numerous technology licenses and partnerships, including: Broad Institute RNA-guided nucleases: CRISPR-Cas9 and CRISPR-Cpf1 Pairwise Plants Base editing technology, which is the next-generation of editing capability Germplasm Plant genetics central to leading brand positions in key crops and countries Genomics Leading genome libraries and whole-genome sequencing capabilities Testing Network Leading field testing network, wraps around the globe twice Transformative Editing Tools First Generation ProductsDifferentiated Enablers EditedBreeding Wild Type NEW!: Short Stature Corn created through genome editing Other areas of focus include disease resistance, stress tolerance and plant growth and development
Provides exceptional weed control and yield with a triple- stack herbicide-tolerance trait providing growers with the flexibility of three over-the-top herbicide options: Increases spectrum of control from 350 to 375 weed species; Enlist E3™ system only controls 2602 Average 2019 yield and agronomic performance consistent with Roundup Ready 2 Xtend soybeans3 Acres in the U.S. expected to be limited in first year Built on the Proven Performance Roundup Ready 2 Xtend Soybeans XtendFlex Soybeans Advancing to Launch Phase Spring 20201 /// Bayer Crop Science R&D Pipeline Update /// February 13, 202019 Glyphosate Low-Volatility Dicamba Glufosinate Soybean system planted by farmers 1# Glyphosate Low-Volatility Dicamba Enables continued use of conservation tillage and no- till systems which improve carbon sequestration and soil health 1 Commercial availability pending regulatory approval 2 .Based on EPA labels for the chemistries. 3 Derived from 26 site locations in SC, NE, IN, IL, WI, MO, IN, AR, IA, NC, KS, SD, OH & GA Xtendimax with VaporGrip Technology is a Restricted Use Pesticide. Always read and follow label instructions. Products not registered in all jurisdictions. Enlist E3™ is trademark of Corteva
Industry-Leading Pipeline: Expect Tolerances to Six Herbicide Classes in Soybeans by 2030 Three Generations of Soybean Herbicide Tolerance Traits Advance 20 Third- Gen. Glyphosate Dicamba Glufosinate HPPD 2,4-D Third- Gen. Demo trial, Jerseyville, July 2018​ 2x applications of 2,4-D and dicamba at V3 followed by glufosinate at V6 and mesotrione at R1 Fourth-Gen Advances to Phase 3 5tolerances Fifth-Gen Advances to Phase 2 Flumioxazin 210g/ha Sulfentrazone 840g/ha Saflufenacil 100g/ha New lower rate PPO Herbicide2 Control HT5 HT5 HT5 HT5 Glyphosate Dicamba Glufosinate HPPD 2,4-D PPO 6tolerances herbicideherbicide Third-Gen Advances to Launch Phase1 Glyphosate Dicamba Glufosinate 3tolerances herbicide /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020 Control Control Control Current Commercial PPO Herbicides HT5 = 5th Gen. Herbicide Tolerance 1 Commercial availability pending regulatory approval 2 In collaboration with Sumitomo Always read and follow label instructions. Products not registered in all jurisdictions. NEW! Control 4th Gen. Herbicide Tolerance NEW!
Intacta RR2 PRO on >65m Acres in South America in 2018/2019; Intacta 2 Xtend in Phase 4 Intacta 2 Xtend to Broaden Insect and Weed Control Spectrum 21 Intacta 2 Xtend trait technology to provide an additional mode of action for insect control and both glyphosate and dicamba tolerance for weed control Stewarded trials expected in 2019/2020 and launch in 20211 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020 1 Pending regulatory approvals 2 2019 soybean screenhouse trials, various Bayer Crop Science Research Centers in the U.S. and Argentina Always read and follow label instructions. Products not registered in all jurisdictions. Control 2nd Gen. Soybean Insect Control Sunflower Looper Infested2 Control Soybean Looper Infested2 2nd Gen. Soybean Insect Control Control S.A. Podworm Infested2 2nd Gen. Soybean Insect Control Control Black Armyworm Infested2 2nd Gen. Soybean Insect Control Reduces insecticide use and the environmental impact of the crop protection program Roundup Ready Brazil – 2018/2019 Brazil – 2018/2019
Lygus and Thrips Control Trait in Cotton in Phase Four with Expected U.S. Launch in 20211 First-Ever Biotech Trait for Piercing and Sucking Insect Control /// Bayer Crop Science R&D Pipeline Update /// February 13, 202022 Protein design and optimization resulted in a protein that controls targeted piercing/sucking insect pests through expression in the plant tissues they attack Protects the plant from thrips and tarnished plant bugs, while allowing beneficial insect population to survive Season-long protection from trait technology expected to reduce foliar insecticide applications, particularly in high pressure environments Expect to launch in 2021 in the U.S. in a stack with the proven Bollgard 3 XtendFlex Technology 1 Pending regulatory approvals Always read and follow label instructions. Products not registered in all jurisdictions. Reduces insecticide use and the environmental impact of the crop protection program 2019 University of TN Trials; West TN Research and Education Center Control Lygus & Thrips Control Trait
Early Safety Testing and Tailored Screening Approaches, Combined with New Data Tools, Collectively Contribute Enhancements to Identify and Optimize Small Molecule Candidates /// Bayer Crop Science R&D Pipeline Update /// February 13, 202023 Biological Screening Target-based Screening Phenotyping Early Safety Testing Differentiated Starting Points Increased P (Success) 2xNew Small Molecules Candidates in Discovery since 2015 = To identify diverse development candidates with a higher probability of regulatory success with new modes-of-action, we constantly improve and tailor our approaches:
Sustains Value Generation from Crop Protection Small Molecule Chemistry Scale, Innovation Underpin Excellent Life Cycle Management /// Bayer Crop Science R&D Pipeline Update /// February 13, 202024 Multi-Dimensional Approach to Small Molecule Lifecycle Management Example: Fluopyram Expands to Eight Markets Across Two Application Methods Driving 8X Sales in Seven Years; Potential to Double in Next Decade 8x Sales 2013 2014 2015 2016 2017 2018 2019 Fruits & Grapes & Plantations Vegetables & Potatoes Rapeseed/Canola Vegetables & Potatoes Fruits & Grapes Cereals SoilNematicide Application FoliarFungicideApplication Enablers of Unique Life Cycle Management in Crop Protection Active Ingredient Stewardship Sustainable and consistent resistance management Responsible maximum soil loading guidelines Grower Convenience Differentiated formulations for the application methods Ready mixture solutions for built-in resistance management and broader spectrum of activity Compatibility for tank mix and rotation in the program of treatment, especially with biologicals
Full Control of All Relevant Diseases in Soybeans; €600m Peak Sales Potential Opportunity Fox Xpro Fungicide Upgrades Fox Franchise in Brazil /// Bayer Crop Science R&D Pipeline Update /// February 13, 202025 Long-lasting solution to offer full control of all relevant soybean diseases including Asian Soybean Rust Combines three different actives from different classes to provide excellent disease control and unmatched resistance management properties AGROW Award 2019 “Best Formulation Innovation”: Optimized formulation to boost performance and minimize environmental impact by reducing off-target losses Enables use in major crop rotation systems with cotton, corn, cereals and sunflower Next-generation technology, Fox Supra (Indiflin®2), in Phase 4 Builds on #1 position in soybean fungicides1 1 Internal estimates 2 In collaboration with Sumitomo. Always read and follow label instructions. Products not registered in all jurisdictions. Reduces environmental impact through innovative formulation Industry Standard Fox Xpro
Novel Solution for Control of Leaf Diseases in Cereals; > €400m Peak Sales Opportunity iblon Fungicide for Cereals Launching in 20203 in New Zealand iblon Technology is an advanced chemistry behind a new family of products powered by Isoflucypram, the latest and most mature compound from the highly valued class of SDHIs2 Wheat treated with iblon exceeded the standards with on average 2.2% higher yields, at an 80% success rate. Offers the most reliable control of the relevant leaf diseases in cereals, along with beneficial physiological effects and activity for several weeks Targeted markets: Europe, Argentina, South Africa, Mexico, New Zealand and Australia Builds on #1 position in cereal fungicides1 Untreated Bayer’s current standard Latest competitor’s standard iblon Technology 1 Internal estimates 2 succinate dehydrogenase inhibitor 3 Pending regulatory approvals Always read and follow label instructions. Products not registered in all jurisdictions. Increases productivity through improved disease control /// Bayer Crop Science R&D Pipeline Update /// February 13, 202026
/// Bayer Crop Science R&D Pipeline Update /// February 13, 202027 1 Internal estimates Always read and follow label instructions. Products not registered in all jurisdictions. Builds on #1 position in insecticides in horticulture and #3 in both corn and soybeans1 Fast-acting and long-lasting control of all important caterpillars and selected beetles and sucking pests with this tetraniliprole diamide insecticide Regulatory submissions planned or submitted across key markets of India, China, Indonesia, Australia, Chile, Argentina; up to 17 launches expected in 2020 and 2021 Expect use in a number of key crops; corn, rice, potatoes, fruits & nuts and vegetables via multiple application methods, including foliar, drone, drip & drench and seed treatment Asia Pacific Focus with Initial Launch in Korea in 2019; >€300m Peak Sales Potential Vayego Launched; New Broad-Spectrum Insecticide Tetraniliprole/ Spirotetramat Mixture Untreated Control Increases productivity per acre through improved insect control
/// Bayer Crop Science R&D Pipeline Update /// February 13, 202028 1 Internal estimates Potential to build on #1 position in global herbicides1 Entirely new mode of action advanced to Phase 2 early development Demonstrates effective control of key resistant grasses, including Goosegrass and Sourgrass Discovery program launched in biotechnology to discover a matching herbicide tolerant trait; initial approaches under evaluation First New Post-Emergence Mode of Action for Broad Acre Weed Control in 30 Years New Herbicide Molecule Unlocks Greater Flexibility Glyphosate-Resistant Goosegrass Glyphosate-Resistant Sourgrass Untreated Control Glyphosate 630 g ai/ha Glyphosate 1260 g ai/ha Untreated Control Glyphosate 630 g ai/ha Glyphosate 1260 g ai/ha Enables continued use of conservation tillage and no- till systems which improve carbon sequestration and soil health New Herbicide New Herbicide
FY 15 FY 16 FY 17 FY 18 FY 19 Significant Opportunity to Expand Digital Ag Footprint FieldView: The Leading Brand and Platform for Growers /// Bayer Crop Science R&D Pipeline Update /// February 13, 202029 60m >35m 15m 5m >95m #1 Platform in the Digital Ag space 1 Internal estimates 2 2018 Brand Health Monitor 3 Harvested acres – USDA FAS 2018-10-11, ex China Global Paid Acres1 Growth Fueled by Platform Advantages digital farming infrastructure Most Established, Scalable in digital Ag space2 #1 Brand Largest Database of grower and field trial seed performance data in the industry Global distribution footprint established on the FieldView Platform >65 Partners New Business Models enabling sharing of value and risk in the pipeline >35 Next-Gen Projects Opportunity for Corn, Soybean, Wheat3 ~1bn Global Acre
+17,000 connected combines uploading data since Aug 2019 Connected Combines Connected Planters & Sprayers +16,000 planters and 4,500 sprayers uploading data since Jan 2019 Connected combines on 10-18-19 FieldView Drive Collects, Connects & Digitizes Farmer Activity; Informs, Improves Models & Digital Tools Extensive Data Collection Capability Complements our R&D Data /// Bayer Crop Science R&D Pipeline Update /// February 13, 202030 32 9 First 10m Hours Second 10m Hours Months to Collect 10m Connected Hours
Planning to Expand Corn Seed Advisor with Increased Acres in 2020 FieldView Seed Advisor Advancing to Commercial Launch 31 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020 AssignmentProducts & Portfolio Density Which products should I purchase and how much of each? Which fields do I optimally place each product? What’s the right density? Should I redistribute seeds in this field? FieldView Corn Seed Advisor Optimizes Key Grower Decisions Powered by Millions of Data Points Algorithm powered by >6m data points from >7,700 hybrids and 60K+ fields from Bayer R&D and seed genetic library to develop and validate algorithm Performance testing from 2017-2019 demonstrates consistent 6-9bu/ac yield advantage Product enhancements focused on improving field assignment accuracy using extensive FieldView data 2019 Beta Launch for Corn Seed Advisor across seven states (IA, IL, IN, MN, MO, SD, WI) Improves productivity per acre through optimized seed placement
Advanced Corn Seed Prescriptions Progresses; Europe, Brazil and Argentina in Phase Three Advanced Seed Prescriptions Expected to Launch in LATAM in 2021 /// Bayer Crop Science R&D Pipeline Update /// February 13, 202032 Positive yield response from both variable rate seeding scripts and increased planting density Trials demonstrate average yield benefit of 3.2 bu/acre across Brazil (both seasons) and Argentina Expected increase of seeding rate density of ~1,200 seeds/ac Advanced Seed Prescriptions Improve Productivity per Acre Global Expansion Opportunity FieldView Seed Scripts will be the commercial offering in the U.S. in 2020 Expect to beta launch in Brazil, Argentina and the E.U. in 2021 Commercialized Next Planned Beta Markets It's impressive how FieldView generated the scripts for me, without ever stepping on my field. It was very good, and very similar to what I would do and recommend. Cassio Kossatz, Paraná, Brazil
Combined R&D Pipeline to Advance and Enhance Grower Experience Throughout the Season Growers Seek Tailored Season-Long Solutions Yield Establishment Yield Protection Farmer Decision Points Seed Selection Choice of Seed + Treatment Soil/Fertility Management Water Management Weed Management Pest Management Disease Management Providing the science and tools to make season-long recommendations Pipeline Growth Drivers BCS Current Market Position Leading share positions in corn, soybean, cotton and vegetable seeds Global leader in biotech traits that provide insect and weed control; >350m acres/year Leading global positions in herbicides, insecticides and fungicides Expect >75 new CP formulations to launch across the next decade; >35 in herbicides, >20 in fungicides and >20 in insecticides New molecules providing new CP modes of action anticipated in the next decade, including Vayego insecticide, iblon fungicide and a new mode-of-action herbicide Several key new biotech traits planned for launch in the next decade, including XtendFlex, Intacta 2 Xtend, HT4 and HT5 in soybeans, ThryvOn in cotton, SmartStax PRO, HT3, HT4, HT5 and short-stature in corn. >450 new hybrids/varieties expected to launch annually across corn, soybeans, vegetables, cotton and other crops Expect >20 new Seed Growth formulations to launch in the next decade, as well as 3rd Gen. BioRise microbial seed treatment in corn >35 pipeline projects/models to fuel continual improvements in FieldView recommendations /// Bayer Crop Science R&D Pipeline Update /// February 13, 202033
Delivering World Class Innovation Key Takeaways 34 Pursuing sustainable innovation to shape the future of agriculture Delivering the leading R&D pipeline in scale, productivity and value Optimizing large and diverse germplasm library with advanced breeding technologies Leading the development of next-generation biotech traits; technology provider to the industry Unlocking new potential by combining R&D platforms, powered by data science Advancing new approaches in small molecule discovery and biologicals 1 2 3 4 5 6 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020
/////////// Appendix: Crop Science Pipeline
Improved Dicamba & Glyphosate Premix Corn R&D Pipeline – Peak Sales Potential: €11-14bn /// Bayer Crop Science R&D Pipeline Update /// February 13, 202036 Above Ground (Lepidoptera) 4th generation Lepidoptera protection 5th generation Lepidoptera protection Annual germplasm upgrades 1 3 4 Dev. Subm.Br PBt CP Herbicide tolerance 3rd generation weed management system 4th generation weed management system with RHS2 5th generation weed management system Improved Dicamba formulations 2 3 4 Dev. Subm.PBt CPBr Next generation NemaStrike formulation Harness LCM Short Stature Corn Short Stature Corn 1 Below Ground (Coleoptera) SmartStax Pro 4th generation Coleoptera protection Vayego Goss Wilt resistance Corn Disease Shield - Annual upgrades 2 Stinkbug pipeline ARVIS 1 Acceleron - Annual upgrades Belt Smart Early Pipeline Chewing Pests Sucking Pests Nematodes Plant Health Systems New Insecticide Early Pipeline Novel PPO Herbicide2 RHS2 = Second Generation Roundup Hybridization System 1 In collaboration with BASF 2 In collaboration with Sumitomo *R&D Phases: 1 – Research, 2 – Early Development, 3 – Late Development, 4 – Registrations Filed **Product enhancement: (Life Cycle Management activities) Dev. – Under development; Subm. – Submitted for Registration Br PBt CP Breeding – incl. native traits and molecular breeding Plant Biotech – biotechnology traits Crop Protection – chemical and biological solutions applied as seed treatment, foliar or via soil Progress achieved Phases 1 through 4 Status indication for Life Cycle Management Items Strategic collaborations Represents annual advancements and upgrades Pipeline status highlighting significant development, progress or advancement in R&D Pipeline (pink) and Key Life Cycle Management (blue) work. NEW NEW New Herbicide MOA NEW NEW PEST MANAGEMENT – ~15% of Peak Sales Potential YIELD & ABIOTIC STRESS – ~65% of Peak Sales Potential R&D Target Technology Phase* Enhancement** Delaro Complete adv. to launch DISEASE MANAGEMENT – ~5% of Peak Sales Potential WEED MANAGEMENT – ~15% of Peak Sales Potential R&D Target Technology Phase* Enhancement** adv. to launch NEW adv. to launch 3rd generation BioRise microbial seed treatment New Biological Early Pipeline
Soybean R&D Pipeline – Peak Sales Potential: €6-8bn /// Bayer Crop Science R&D Pipeline Update /// February 13, 202037 INTACTA RR2 PRO 2nd generation insect protection 3rd generation insect protection Belt Smart Annual germplasm upgrades 2 3 4 Dev. Subm.Br PBt CP Herbicide tolerance XtendFlex 4th generation weed management system 5th generation weed management system New Soybean selective herbicide 3-way mixture Improved Dicamba formulations Indiflin®2 2 3 4 Dev. Subm.PBt CPBr Plant health systems 2nd generation Soy Cyst Nematode resistance Next generation NemaStrike formulation Soy Disease Shield 1 1 Aphid & Whitefly pipeline Novel Sucking Pest Solution Stinkbug Pipeline ARVIS Novel Mite Solution Acceleron Upgrades New Fungicide Improved Dicamba & Glyphosate Premix Asian Soybean Rust Early Pipeline Chewing Pests Sucking Pests Nematodes New Herbicide MOA High Yielding Soy1 Novel PPO Herbicide2 1 In collaboration with BASF 2 In collaboration with Sumitomo *R&D Phases: 1 – Research, 2 – Early Development, 3 – Late Development, 4 – Registrations Filed **Product enhancement: (Life Cycle Management activities) Dev. – Under development; Subm. – Submitted for Registration Br PBt CP Breeding – incl. native traits and molecular breeding Plant Biotech – biotechnology traits Crop Protection – chemical and biological solutions applied as seed treatment, foliar or via soil Progress achieved Phases 1 through 4 Status indication for Life Cycle Management Items Strategic collaborations Represents annual advancements and upgrades Pipeline status highlighting significant development, progress or advancement in R&D Pipeline (pink) and Key Life Cycle Management (blue) work. NEW NEW NEW adv. to launch NEW NEW R&D Target Technology Phase* Enhancement** PEST MANAGEMENT - ~20% of Peak Sales Potential YIELD & ABIOTIC STRESS - ~20% of Peak Sales Potential New Insecticide Seed Treatment CropStar LCM Seed Treatment NEW NEW Delaro Complete adv. to launch R&D Target Technology Phase* Enhancement** DISEASE MANAGEMENT - ~30% of Peak Sales Potential WEED MANAGEMENT - ~30% of Peak Sales Potential New Soybean selective herbicide 2-way mixture NEW NEW New Biological Early Pipeline
Cereals, Oilseed Rape, Cotton, Sugarbeets, Rice R&D Pipelines – Peak Sales Potential: €3-4bn1 /// Bayer Crop Science R&D Pipeline Update /// February 13, 202038 2 3 4 Dev. Subm.Br PBt CP 2 3 4 Dev. Subm.PBt CPBr1 1 Delaro forte Cereals New Cereals Selective Herbicide Atlantis franchise extensions New Autumn Herbicides Pyrasulfotole LCM New Cereals Seed Treatment iblon New Bixafen extensions Redigo FS 25 Annual germplasm upgrades Disease package annual upgrade WEED MANAGEMENT PEST MANAGEMENT DISEASE MANAGEMENT YIELD & ABIOTIC STRESS Cotton Annual germplasm upgrades 4th Generation Herbicide Tolerance ThryvOn Technology (Lygus / Thrips cotton) 4th Generation Bollgard Novel sucking pest solution Novel Mite solution New Insecticide Next generation NemaStrike formulation New Insecticide Early Pipeline Chewing Pests Sucking Pests Nematodes Early Pipeline Selective Herbicides New Fungicidal Seed Treatment Improved Dicamba formulations Improved Dicamba & Glyphosate Premix adv. to launch Novel PPO Herbicide2 1 Peak Sales Potential Split: Yield & Abiotic stress = ~15%, Pest Management = ~20%, Disease Management = ~25%, Weed Management = ~40% 2 In collaboration with Sumitomo *R&D Phases: 1 – Research, 2 – Early Development, 3 – Late Development, 4 – Registrations Filed **Product enhancement: (Life Cycle Management activities) Dev. – Under development; Subm. – Submitted for Registration Br PBt CP Breeding – incl. native traits and molecular breeding Plant Biotech – biotechnology traits Crop Protection – chemical and biological solutions applied as seed treatment, foliar or via soil Progress achieved Phases 1 through 4 Status indication for Life Cycle Management Items Strategic collaborations Represents annual advancements and upgrades Pipeline status highlighting significant development, progress or advancement in R&D Pipeline (pink) and Key Life Cycle Management (blue) work. R&D Target Technology Phase* Enhancement** PEST MANAGEMENT WEED MANAGEMENT YIELD & ABIOTIC STRESS R&D Target Technology Phase* Enhancement** adv. to launch adv. to launch adv. to launch adv. to launch NEW NEW NEW
Cereals, Oilseed Rape, Cotton, Sugarbeets, Rice R&D Pipelines (con’t.) /// Bayer Crop Science R&D Pipeline Update /// February 13, 202039 2 3 4 Dev. Subm.Br PBt CP 2 3 4 Dev. Subm.PBt CPBr1 1 Vayego OilseedRape DEKALB LibertyLink Canola TruFlex Canola with Roundup Ready TruFlex Roundup Ready TruFlex Roundup Ready + LibertyLink Dicamba-Tolerant Canola New Insecticide Annual germplasm upgrades including Podshatter WEED MANAGEMENT PEST MANAGEMENT YIELD & ABIOTIC STRESS Rice Annual germplasm upgrades Annual hybrid production Council Activ Sucking Pest Tolerance New Insecticide Super Nativo PEST MANAGEMENT YIELD & ABIOTIC STRESS WEED MANAGEMENT Early Pipeline DISEASE MANAGEMENT adv. to launch *R&D Phases: 1 – Research, 2 – Early Development, 3 – Late Development, 4 – Registrations Filed **Product enhancement: (Life Cycle Management activities) Dev. – Under development; Subm. – Submitted for Registration Br PBt CP Breeding – incl. native traits and molecular breeding Plant Biotech – biotechnology traits Crop Protection – chemical and biological solutions applied as seed treatment, foliar or via soil Progress achieved Phases 1 through 4 Status indication for Life Cycle Management Items Strategic collaborations Represents annual advancements and upgrades Pipeline status highlighting significant development, progress or advancement in R&D Pipeline (pink) and Key Life Cycle Management (blue) work. Sugarbeets WEED MANAGEMENT NEW2nd generation weed management system2 R&D Target Technology Phase* Enhancement** R&D Target Technology Phase* Enhancement** 1 Peak Sales Potential Split: Yield & Abiotic stress = ~15%, Pest Management = ~20%, Disease Management = ~25%, Weed Management = ~40% 2 In collaboration with KWS adv. to launch Council Star Council Xtra NEW NEW adv. to launch adv. to launch adv. to launch adv. to launch
adv. to launch Horticulture R&D Pipeline – Peak Sales Potential: €3-4bn /// Bayer Crop Science R&D Pipeline Update /// February 13, 202040 ~150 advancements to launch Highlights include SVTH2900 Tomato, Shoreline Watermelon, Pinanta Tomato, GALVIR Galia Melon and Hot Pepper SVHA-1448 2 3 4 Dev. Subm.Br PBt CP 2 3 4 Dev. Subm.PBt CPBr R&D Target Technology Phase* Enhancement** 1 1 Novel Mite Solution New Herbicide MOA New Insecticide Vayego Aphid & Whitefly pipeline Novel Sucking Pest Solution SIVANTO brand family extension LUNA brand family extension Fluoxapiprolin Downy Mildew resistant lettuce Geminivirus resistant tomato DISEASE MANAGEMENT - ~25% of Peak Sales Potential Dicot Leaf & Fruit Diseases Oomycetes Plant Health Systems WEED MANAGEMENT - ~10% of Peak Sales Potential Early Pipeline YIELD AND ABIOTIC STRESS - ~45% Peak Sales Potential PEST MANAGEMENT - ~20% of Peak Sales Potential Chewing Pests Sucking Pests Early Pipeline Nematodes Velum Next gen nematode resistant tomato *R&D Phases: 1 – Research, 2 – Early Development, 3 – Late Development, 4 – Registrations Filed **Product enhancement: (Life Cycle Management activities) Dev. – Under development; Subm. – Submitted for Registration Br PBt CP Breeding – incl. native traits and molecular breeding Plant Biotech – biotechnology traits Crop Protection – chemical and biological solutions applied as seed treatment, foliar or via soil Progress achieved Phases 1 through 4 Status indication for Life Cycle Management Items Strategic collaborations Represents annual advancements and upgrades Pipeline status highlighting significant development, progress or advancement in R&D Pipeline (pink) and Key Life Cycle Management (blue) work. R&D Target Technology Phase* Enhancement** adv. to launch adv. to launch adv. to launch Alion LCM Roundup LCM NEW NEW NEW adv. to launch NEW Serenade ASO New Biological Fungicide High concentrated Biological High concentrated Biological Yield & Quality Seed- & Soil-borne Diseases Early Pipeline New Biological Insecticide BioAct DC Serenade ASO Bacteria adv. to launch
NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW 2 3 4 Digital R&D Pipeline /// Bayer Crop Science R&D Pipeline Update /// February 13, 202041 1 Seed Selection (US, Corn) Seed Advisor (US, Corn) Advanced Seed Prescriptions (Brazil, Corn) Advanced Seed Prescriptions (EU, Corn) Advanced Seed Prescriptions (Argentina, Corn) *R&D Phases: 1 – Proof of Concept, 2 – Development, 3 – Pre-Commercial, 4 – Commercial / Launch, 5 – Post-Commercial / Enhancement ** All crops and/or regions enabled in FieldView P = Phosphorus K = Potassium Pipeline status with color highlighting significant development, progress or advancement in R&D and commercial workProgress achieved Phases 1 through 5 R&D Target Phase* 5 Seed Selection (US, Soy) Designed Hybrid Side-by-Sides (US, Corn) Advanced Seed Prescriptions (US, Soy) FIELD INSIGHTS Field Health and Scouting Insights (EU, Corn) Advanced Irrigation Recommendations (US, Corn) Disease Vulnerability (US, Soy) Disease Vulnerability (US, Corn) Disease Identification (Global, Wheat) Disease Identification (US, Corn) Disease Identification (US, Soy) Disease Vulnerability (EU, Wheat) SEEDS AND PLANTING Fungicide ROI (Canada, Canola) Fungicide ROI (US, Soy) Fungicide ROI (EU, Wheat) Fungicide ROI (US, Corn) NEW NEW NEW NEW 2 3 41 Automated Experiment Design (Global, All Crops**) Automated Experiment Analysis (Global, All Crops**) Replant Models (US, Corn) Field Productivity V2 (US, Corn) Yield Prediction (US, Soy) R&D Target Phase* 5 Yield Prediction (EU, Wheat) Yield Prediction (US, Corn) Seed Supply Planning (US, Corn) FERTILITY P & K Scripting (US, All Crops**) P & K Scripting (Brazil and Argentina, Corn) Short Corn Fertility Advanced Nitrogen Scripting (US, Wheat) Advanced Nitrogen Scripting (US, Corn) YIELD ANALYTICS MEASUREMENTS On-Equipment Soil Mapping (US, All Crops**) On-Equipment Imaging (US, Corn) On-Equipment Spray Sensing (US, All Crops**) NEW NEW

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Investor Conference Call Presentation: Crop Science R&D Pipeline Update

  • 1. /////////// FEBRUARY 13, 2020 Delivering World Class Innovation Crop Science R&D Pipeline Update
  • 2. Biotechnology & Genome Editing Highlights – Jeremy Williams, Ph.D. Head of Plant Biotechnology, Crop Science R&D Crop Protection Highlights – Axel Trautwein, Ph.D. Head of Small Molecules, Crop Science R&D Digital Farming Highlights – Sam Eathington, Ph.D. Climate Chief Science Officer Breeding Highlights – Mike Graham, Ph.D. Head of Breeding, Crop Science R&D Investment & Advancements – Bob Reiter, Ph. D. Head of R&D, Crop Science Division Agenda /// Bayer Crop Science R&D Pipeline Update /// February 13, 20202 Small Molecules Axel Trautwein Plant Biotechnology Jeremy Williams Sam Eathington Digital Farming Opening Comments – Liam Condon President of the Crop Science Division President, Crop Science Liam Condon Breeding Mike Graham Head of R&D, Crop Science Bob Reiter
  • 3. Forward-Looking Statements This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer 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. /// Bayer Crop Science R&D Pipeline Update /// February 13, 20203
  • 4. The World Needs More Innovation in Agriculture 4 Source: FAO 2017, The Future of Food and Agriculture * By 2050 Demand 50% More food, feed & biofuel* needed World population* 10bn~ More meat in developing nations* needed 70% Supply 17% Harvest losses* Ha of agricultural land loss annually 12m reduction in arable land per capita* 20% 2017 2050 natural resources Need to produce significantly more while protecting /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020
  • 5. As the Industry Leader Uniquely Positioned to Create Value through Innovative Tailored Solutions Shaping Agriculture to Benefit Farmers, Consumers and Our Planet 5 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020 We seek to deliver world-class innovation, new standards in sustainability and pioneer a digital transformation in agriculture to feed a growing global population Digital Ag Crop Protection Seed & Traits Tailored Solutions
  • 6. /// Bayer Crop Science R&D Pipeline Update /// February 13, 20206 Producing Better The history of corn production plot demonstrates the great strides we have made in producing more with less, and the opportunity we have to continue to “produce better” through tailored solutions that drive us toward our reduced environmental impact commitment while meeting the needs of a growing population on an increasingly hotter planet. Future 2019 2018 2000 1980 1940 =10Bushel Yield Each Plot
  • 7. Climate-smart practices: No-tillage Highly Productive Crops Cover Crops Precision Agriculture Optimize use of synthetic fertilizers through the use of microbes Bayer’s Sustainability Commitments by 2030 Enhancing Sustainability and Biodiversity in Agriculture /// Bayer Crop Science R&D Pipeline Update /// February 13, 20207 Produce higher-yielding crops with fewer natural resources and inputs . Advancing a carbon-zero future for agriculture through helping our customers reduce field greenhouse gases by crop production. Empower 100 million smallholder farmers 30 Climate FieldView for precision application of pesticides /fertilizers Resistant traits help to reduce pesticide use Develop crop protection products with lower environmental impact Enhancing social innovation (e.g. with Better Life Farming) Digital transformation with FarmRise Introduce new, higher-yielding, resource efficient rice hybrids Reduction in field greenhouse gases emitted per kg of crops produced 30Reduction in impact on the environment 100Smallholders benefit e.g. from access to education, tailored solutions & partners
  • 8. Shaping the Future of Agriculture with Most Productive Innovation Platform in the Industry Unmatched Investment in R&D Powers Industry-Leading Profitability 8 #1 R&D Platform in Crop Science >7,800 R&D employees2 in >50 countries >20 large-scale R&D centers Partner of choice Technology provider to the industry 1 Pro-forma estimates based on company information and internal calculations for BASF and Bayer. Amounts are from 2018 for Bayer and BASF, 2019 reported R&D for Corteva and is a 2018 proforma estimate derived from company reports for the newly formed Syngenta Group. The Syngenta Group estimate does not consider Sinochem R&D. Bayer Pro-forma figures consider Monsanto acquisition and related divestments. 2 Includes permanent and temporary employees 2.3 1.2 1.0 0.9 Bayer Crop Science Syngenta Group Corteva BASF Ag Seed & Traits AgChem Ag R&D Investment (€bn)1 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020
  • 9. Enabling Innovation and Effective Delivery on Industry-Leading Pipeline Leveraging Open Model for Incremental and Disruptive Innovation 9 Driving transformation towards next level data driven R&D organization Open Innovation Model Technology Collaborations Venture Capital Universities & Research Institutes Customer-sponsored Research Grants4TraitsTM Grants4TargetsTM Crowdsourcing /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020 Genome-editing Next generation biological science Precision breeding Drone application technology New modalities for crop protection Annual germplasm upgrades New modes of action in weed, insect and disease control through biotech and crop protection New formulations and uses in crop protection to expand spectrum and crops Incremental Innovation Disruptive Innovation
  • 10. >95m paid acres in U.S.A., Latin America and Europe represents industry’s leading platform reach #1database of grower and field trial seed performance data in the industry Data Science 30-60 molecules selected for field trials a year Expect >100 new formulations to launch in the next decade Strong discovery platform for molecules with new modes-of-action and differentiated profiles Chemistry Biologicals Best positioned to discover, combine and tailor solutions for growers Seeds & Traits Crop Protection Digital Ag++ Reach >350m acres annually >20 new and next- generation traits in development Biotech Leading germplasm libraries >1.7Tcalculations in cloud-based algorithms >3,200 unique field testing locations Breeding Continued Investment in Data Science and New Technologies are Driving Future Opportunity Next Growth Opportunity: Convergence of Leading R&D Platforms /// Bayer Crop Science R&D Pipeline Update /// February 13, 202010 ~80m acres of commercial products reached annually in row crops 170,000 microbes in collection >10,000 microbes screened in vitro and in planta annually
  • 11. Converting Investment into Meaningful Products for Farmers Driving the Largest and Most Valuable R&D Pipeline in Ag /// Bayer Crop Science R&D Pipeline Update /// February 13, 202011 New hybrids and varieties commercialized New crop protection formulations advanced450+ 20 1 Represents non-risk adjusted estimated peak sales for the combined breeding, biotech, crop protection and environmental science pipelines. 2.Includes 8 biotech, 4 breeding, 5 chemistry and 18 data science advancements. Value of Up to €30bn in Peak Sales1 Horticulture ~€3-4bn ~€11-14bn Soybean ~€6-8bn Cereals & Other ~€3-4bn ~45% Incremental Corn Productive and Prolific Pipeline in 2019 Advancements2 generated by projects in seed & traits, crop protection and digital ag pipelines 35 Breeding Chemistry Data Science Biologicals Biotech Seeds & Traits Crop Protection Digital Ag
  • 12. New Non-Selective PPO Herbicide2 New Mode of Action Herbicide Fox Supra (Indiflin®) for Soybeans2 (isoflucypram) for Cereals (tetraniliprole) for Corn, Rice, Horticulture and Other Crops Insecticides 3rd, 4th and 5th Generation Herbicide Tolerance Traits Short Stature Corn Hybrids/TraittraitFieldView Seed Advisor 4th and 5th Generation Herbicide Tolerance TraitsFieldView Seed Placement Soybeans Corn Herbicides Key Product Highlights Featured Represent >€22bn3 of Peak Sales Potential Advancing Agriculture with a Decade of Transformative Products /// Bayer Crop Science R&D Pipeline Update /// February 13, 202012 Expected Ongoing Refreshment New Formulation Launches in the next Decade20+ New Formulation Launches in the next Decade20+ New Varieties Commercialized Annually150+ New Hybrids Commercialized Annually150+ New Formulation Launches in the next Decade35+ 1 Subject to regulatory approvals and pending registrations. Represents a subset of the pipeline. Launches are all approximates. 2 In collaboration with Sumitomo. 3. Internal estimate; ~45% of the peak sales potential is incremental Select Planned Product Launches1 2020 20302021 202920282022 //2023 2027 Lygus & Thrips Control Cotton Trait 3rd Gen BioRise Microbial Seed TreatmentOther, Vegetables, Environmental Science, Seed Growth Vegetable Hybrids/Varieties Commercialized Annually New Formulation Launches in the next Decade ~150 20+ Fungicides FieldView Advanced Seed Scripting Novel Mite Solution New Fungicide for Asian Soybean Rust New Soybean Selective Herbicide Mixtures New Autumn Herbicides for Cereals
  • 13. Expect to Commercialize >150 Corn Hybrids a Year to Drive Growth in €4.8bn2 Corn Seed & Traits Sales Advanced Breeding Underpins Leadership in Corn Seed & Traits /// Bayer Crop Science R&D Pipeline Update /// February 13, 202013 Mexico Avg. bu/ac advantage1 >5 # 1Market Pos. Brazil Avg. bu/ac advantage1 >10 # 1Market Pos. Argentina Avg. bu/ac advantage1 >10 # 1Market Pos. South Africa Avg. bu/ac advantage1 >5 Market Pos. # 1 Europe Avg. bu/ac advantage1 3-4 Market Pos. # 2United States Avg. bu/ac advantage1 7-10 Market Pos. # 1 1 Range is either less than or inclusive of the current 3-year average yield advantage based on a comparison of yield data from new Bayer Crop Science products in their year of deployment against competitive market leaders for said region or country. Averages weighted in countries/regions by hybrid market size and exclude non-grain market. 2 2018 proforma sales
  • 14. /// Bayer Crop Science R&D Pipeline Update /// February 13, 202014 Corn Product Design Center Marana, AZ
  • 15. /// Bayer Crop Science R&D Pipeline Update /// February 13, 202015 Two Approaches to Short Stature Corn Advance Biotech: ADVANCED TO PHASE 3 In collaboration with BASF, uses transgene to shorten internodes; enables applicability across wide-array of germplasm. Breeding: ADVANCED TO PHASE 3 Advanced breeding used to introgress naturally occurring short stature characteristic into elite germplasm. commercial beta in Mexico in 2020 Genome Editing: DISCOVERY Multiple, elegant approaches to generate short-stature corn, creating potential for opportunities in multiple markets. Genome Editing Reveals Promising Third Option Three Development Approaches to Short Stature Corn Provide Options to Access Multiple Markets NEW!
  • 16. /// Bayer Crop Science R&D Pipeline Update /// February 13, 202016 Short Stature Corn Field Trial Sinaloa, MX Winter 2017/2018
  • 17. Benefits Include Plant Stability, Late Season Applications of Crop Inputs and Efficient Use of Key Nutrients Short Stature Corn Offers Transformational Shift in Production /// Bayer Crop Science R&D Pipeline Update /// February 13, 202017 Acre Opportunity ExpandingReduced Crop Loss Enabled by improved plant stability and lodging tolerance Reduces crop loss from challenging environmental conditions Annual yield losses due to stalk lodging in the U.S. range from 5% to 25%1 Precision of Crop Input Applications Extended in-season crop access due to shorter height Supports tailored solutions with precise in-season crop protection Increased Environmental Sustainability Potential to optimize use of key nutrients like nitrogen, as well as reducing land and water requirements Potential Global Opportunity Across >220m Corn Acres Americas Alone Account for 140m Acres 1 Purdue University (https://www.extension.purdue.edu/extmedia/ay/ay-262.html)
  • 18. Tools and Capabilities Build on Existing Core Competencies to Usher in New Benefits in the Next Decade Well Positioned to Create Value in Ag with Genome Editing /// Bayer Crop Science R&D Pipeline Update /// February 13, 202018 Numerous technology licenses and partnerships, including: Broad Institute RNA-guided nucleases: CRISPR-Cas9 and CRISPR-Cpf1 Pairwise Plants Base editing technology, which is the next-generation of editing capability Germplasm Plant genetics central to leading brand positions in key crops and countries Genomics Leading genome libraries and whole-genome sequencing capabilities Testing Network Leading field testing network, wraps around the globe twice Transformative Editing Tools First Generation ProductsDifferentiated Enablers EditedBreeding Wild Type NEW!: Short Stature Corn created through genome editing Other areas of focus include disease resistance, stress tolerance and plant growth and development
  • 19. Provides exceptional weed control and yield with a triple- stack herbicide-tolerance trait providing growers with the flexibility of three over-the-top herbicide options: Increases spectrum of control from 350 to 375 weed species; Enlist E3™ system only controls 2602 Average 2019 yield and agronomic performance consistent with Roundup Ready 2 Xtend soybeans3 Acres in the U.S. expected to be limited in first year Built on the Proven Performance Roundup Ready 2 Xtend Soybeans XtendFlex Soybeans Advancing to Launch Phase Spring 20201 /// Bayer Crop Science R&D Pipeline Update /// February 13, 202019 Glyphosate Low-Volatility Dicamba Glufosinate Soybean system planted by farmers 1# Glyphosate Low-Volatility Dicamba Enables continued use of conservation tillage and no- till systems which improve carbon sequestration and soil health 1 Commercial availability pending regulatory approval 2 .Based on EPA labels for the chemistries. 3 Derived from 26 site locations in SC, NE, IN, IL, WI, MO, IN, AR, IA, NC, KS, SD, OH & GA Xtendimax with VaporGrip Technology is a Restricted Use Pesticide. Always read and follow label instructions. Products not registered in all jurisdictions. Enlist E3™ is trademark of Corteva
  • 20. Industry-Leading Pipeline: Expect Tolerances to Six Herbicide Classes in Soybeans by 2030 Three Generations of Soybean Herbicide Tolerance Traits Advance 20 Third- Gen. Glyphosate Dicamba Glufosinate HPPD 2,4-D Third- Gen. Demo trial, Jerseyville, July 2018​ 2x applications of 2,4-D and dicamba at V3 followed by glufosinate at V6 and mesotrione at R1 Fourth-Gen Advances to Phase 3 5tolerances Fifth-Gen Advances to Phase 2 Flumioxazin 210g/ha Sulfentrazone 840g/ha Saflufenacil 100g/ha New lower rate PPO Herbicide2 Control HT5 HT5 HT5 HT5 Glyphosate Dicamba Glufosinate HPPD 2,4-D PPO 6tolerances herbicideherbicide Third-Gen Advances to Launch Phase1 Glyphosate Dicamba Glufosinate 3tolerances herbicide /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020 Control Control Control Current Commercial PPO Herbicides HT5 = 5th Gen. Herbicide Tolerance 1 Commercial availability pending regulatory approval 2 In collaboration with Sumitomo Always read and follow label instructions. Products not registered in all jurisdictions. NEW! Control 4th Gen. Herbicide Tolerance NEW!
  • 21. Intacta RR2 PRO on >65m Acres in South America in 2018/2019; Intacta 2 Xtend in Phase 4 Intacta 2 Xtend to Broaden Insect and Weed Control Spectrum 21 Intacta 2 Xtend trait technology to provide an additional mode of action for insect control and both glyphosate and dicamba tolerance for weed control Stewarded trials expected in 2019/2020 and launch in 20211 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020 1 Pending regulatory approvals 2 2019 soybean screenhouse trials, various Bayer Crop Science Research Centers in the U.S. and Argentina Always read and follow label instructions. Products not registered in all jurisdictions. Control 2nd Gen. Soybean Insect Control Sunflower Looper Infested2 Control Soybean Looper Infested2 2nd Gen. Soybean Insect Control Control S.A. Podworm Infested2 2nd Gen. Soybean Insect Control Control Black Armyworm Infested2 2nd Gen. Soybean Insect Control Reduces insecticide use and the environmental impact of the crop protection program Roundup Ready Brazil – 2018/2019 Brazil – 2018/2019
  • 22. Lygus and Thrips Control Trait in Cotton in Phase Four with Expected U.S. Launch in 20211 First-Ever Biotech Trait for Piercing and Sucking Insect Control /// Bayer Crop Science R&D Pipeline Update /// February 13, 202022 Protein design and optimization resulted in a protein that controls targeted piercing/sucking insect pests through expression in the plant tissues they attack Protects the plant from thrips and tarnished plant bugs, while allowing beneficial insect population to survive Season-long protection from trait technology expected to reduce foliar insecticide applications, particularly in high pressure environments Expect to launch in 2021 in the U.S. in a stack with the proven Bollgard 3 XtendFlex Technology 1 Pending regulatory approvals Always read and follow label instructions. Products not registered in all jurisdictions. Reduces insecticide use and the environmental impact of the crop protection program 2019 University of TN Trials; West TN Research and Education Center Control Lygus & Thrips Control Trait
  • 23. Early Safety Testing and Tailored Screening Approaches, Combined with New Data Tools, Collectively Contribute Enhancements to Identify and Optimize Small Molecule Candidates /// Bayer Crop Science R&D Pipeline Update /// February 13, 202023 Biological Screening Target-based Screening Phenotyping Early Safety Testing Differentiated Starting Points Increased P (Success) 2xNew Small Molecules Candidates in Discovery since 2015 = To identify diverse development candidates with a higher probability of regulatory success with new modes-of-action, we constantly improve and tailor our approaches:
  • 24. Sustains Value Generation from Crop Protection Small Molecule Chemistry Scale, Innovation Underpin Excellent Life Cycle Management /// Bayer Crop Science R&D Pipeline Update /// February 13, 202024 Multi-Dimensional Approach to Small Molecule Lifecycle Management Example: Fluopyram Expands to Eight Markets Across Two Application Methods Driving 8X Sales in Seven Years; Potential to Double in Next Decade 8x Sales 2013 2014 2015 2016 2017 2018 2019 Fruits & Grapes & Plantations Vegetables & Potatoes Rapeseed/Canola Vegetables & Potatoes Fruits & Grapes Cereals SoilNematicide Application FoliarFungicideApplication Enablers of Unique Life Cycle Management in Crop Protection Active Ingredient Stewardship Sustainable and consistent resistance management Responsible maximum soil loading guidelines Grower Convenience Differentiated formulations for the application methods Ready mixture solutions for built-in resistance management and broader spectrum of activity Compatibility for tank mix and rotation in the program of treatment, especially with biologicals
  • 25. Full Control of All Relevant Diseases in Soybeans; €600m Peak Sales Potential Opportunity Fox Xpro Fungicide Upgrades Fox Franchise in Brazil /// Bayer Crop Science R&D Pipeline Update /// February 13, 202025 Long-lasting solution to offer full control of all relevant soybean diseases including Asian Soybean Rust Combines three different actives from different classes to provide excellent disease control and unmatched resistance management properties AGROW Award 2019 “Best Formulation Innovation”: Optimized formulation to boost performance and minimize environmental impact by reducing off-target losses Enables use in major crop rotation systems with cotton, corn, cereals and sunflower Next-generation technology, Fox Supra (Indiflin®2), in Phase 4 Builds on #1 position in soybean fungicides1 1 Internal estimates 2 In collaboration with Sumitomo. Always read and follow label instructions. Products not registered in all jurisdictions. Reduces environmental impact through innovative formulation Industry Standard Fox Xpro
  • 26. Novel Solution for Control of Leaf Diseases in Cereals; > €400m Peak Sales Opportunity iblon Fungicide for Cereals Launching in 20203 in New Zealand iblon Technology is an advanced chemistry behind a new family of products powered by Isoflucypram, the latest and most mature compound from the highly valued class of SDHIs2 Wheat treated with iblon exceeded the standards with on average 2.2% higher yields, at an 80% success rate. Offers the most reliable control of the relevant leaf diseases in cereals, along with beneficial physiological effects and activity for several weeks Targeted markets: Europe, Argentina, South Africa, Mexico, New Zealand and Australia Builds on #1 position in cereal fungicides1 Untreated Bayer’s current standard Latest competitor’s standard iblon Technology 1 Internal estimates 2 succinate dehydrogenase inhibitor 3 Pending regulatory approvals Always read and follow label instructions. Products not registered in all jurisdictions. Increases productivity through improved disease control /// Bayer Crop Science R&D Pipeline Update /// February 13, 202026
  • 27. /// Bayer Crop Science R&D Pipeline Update /// February 13, 202027 1 Internal estimates Always read and follow label instructions. Products not registered in all jurisdictions. Builds on #1 position in insecticides in horticulture and #3 in both corn and soybeans1 Fast-acting and long-lasting control of all important caterpillars and selected beetles and sucking pests with this tetraniliprole diamide insecticide Regulatory submissions planned or submitted across key markets of India, China, Indonesia, Australia, Chile, Argentina; up to 17 launches expected in 2020 and 2021 Expect use in a number of key crops; corn, rice, potatoes, fruits & nuts and vegetables via multiple application methods, including foliar, drone, drip & drench and seed treatment Asia Pacific Focus with Initial Launch in Korea in 2019; >€300m Peak Sales Potential Vayego Launched; New Broad-Spectrum Insecticide Tetraniliprole/ Spirotetramat Mixture Untreated Control Increases productivity per acre through improved insect control
  • 28. /// Bayer Crop Science R&D Pipeline Update /// February 13, 202028 1 Internal estimates Potential to build on #1 position in global herbicides1 Entirely new mode of action advanced to Phase 2 early development Demonstrates effective control of key resistant grasses, including Goosegrass and Sourgrass Discovery program launched in biotechnology to discover a matching herbicide tolerant trait; initial approaches under evaluation First New Post-Emergence Mode of Action for Broad Acre Weed Control in 30 Years New Herbicide Molecule Unlocks Greater Flexibility Glyphosate-Resistant Goosegrass Glyphosate-Resistant Sourgrass Untreated Control Glyphosate 630 g ai/ha Glyphosate 1260 g ai/ha Untreated Control Glyphosate 630 g ai/ha Glyphosate 1260 g ai/ha Enables continued use of conservation tillage and no- till systems which improve carbon sequestration and soil health New Herbicide New Herbicide
  • 29. FY 15 FY 16 FY 17 FY 18 FY 19 Significant Opportunity to Expand Digital Ag Footprint FieldView: The Leading Brand and Platform for Growers /// Bayer Crop Science R&D Pipeline Update /// February 13, 202029 60m >35m 15m 5m >95m #1 Platform in the Digital Ag space 1 Internal estimates 2 2018 Brand Health Monitor 3 Harvested acres – USDA FAS 2018-10-11, ex China Global Paid Acres1 Growth Fueled by Platform Advantages digital farming infrastructure Most Established, Scalable in digital Ag space2 #1 Brand Largest Database of grower and field trial seed performance data in the industry Global distribution footprint established on the FieldView Platform >65 Partners New Business Models enabling sharing of value and risk in the pipeline >35 Next-Gen Projects Opportunity for Corn, Soybean, Wheat3 ~1bn Global Acre
  • 30. +17,000 connected combines uploading data since Aug 2019 Connected Combines Connected Planters & Sprayers +16,000 planters and 4,500 sprayers uploading data since Jan 2019 Connected combines on 10-18-19 FieldView Drive Collects, Connects & Digitizes Farmer Activity; Informs, Improves Models & Digital Tools Extensive Data Collection Capability Complements our R&D Data /// Bayer Crop Science R&D Pipeline Update /// February 13, 202030 32 9 First 10m Hours Second 10m Hours Months to Collect 10m Connected Hours
  • 31. Planning to Expand Corn Seed Advisor with Increased Acres in 2020 FieldView Seed Advisor Advancing to Commercial Launch 31 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020 AssignmentProducts & Portfolio Density Which products should I purchase and how much of each? Which fields do I optimally place each product? What’s the right density? Should I redistribute seeds in this field? FieldView Corn Seed Advisor Optimizes Key Grower Decisions Powered by Millions of Data Points Algorithm powered by >6m data points from >7,700 hybrids and 60K+ fields from Bayer R&D and seed genetic library to develop and validate algorithm Performance testing from 2017-2019 demonstrates consistent 6-9bu/ac yield advantage Product enhancements focused on improving field assignment accuracy using extensive FieldView data 2019 Beta Launch for Corn Seed Advisor across seven states (IA, IL, IN, MN, MO, SD, WI) Improves productivity per acre through optimized seed placement
  • 32. Advanced Corn Seed Prescriptions Progresses; Europe, Brazil and Argentina in Phase Three Advanced Seed Prescriptions Expected to Launch in LATAM in 2021 /// Bayer Crop Science R&D Pipeline Update /// February 13, 202032 Positive yield response from both variable rate seeding scripts and increased planting density Trials demonstrate average yield benefit of 3.2 bu/acre across Brazil (both seasons) and Argentina Expected increase of seeding rate density of ~1,200 seeds/ac Advanced Seed Prescriptions Improve Productivity per Acre Global Expansion Opportunity FieldView Seed Scripts will be the commercial offering in the U.S. in 2020 Expect to beta launch in Brazil, Argentina and the E.U. in 2021 Commercialized Next Planned Beta Markets It's impressive how FieldView generated the scripts for me, without ever stepping on my field. It was very good, and very similar to what I would do and recommend. Cassio Kossatz, Paraná, Brazil
  • 33. Combined R&D Pipeline to Advance and Enhance Grower Experience Throughout the Season Growers Seek Tailored Season-Long Solutions Yield Establishment Yield Protection Farmer Decision Points Seed Selection Choice of Seed + Treatment Soil/Fertility Management Water Management Weed Management Pest Management Disease Management Providing the science and tools to make season-long recommendations Pipeline Growth Drivers BCS Current Market Position Leading share positions in corn, soybean, cotton and vegetable seeds Global leader in biotech traits that provide insect and weed control; >350m acres/year Leading global positions in herbicides, insecticides and fungicides Expect >75 new CP formulations to launch across the next decade; >35 in herbicides, >20 in fungicides and >20 in insecticides New molecules providing new CP modes of action anticipated in the next decade, including Vayego insecticide, iblon fungicide and a new mode-of-action herbicide Several key new biotech traits planned for launch in the next decade, including XtendFlex, Intacta 2 Xtend, HT4 and HT5 in soybeans, ThryvOn in cotton, SmartStax PRO, HT3, HT4, HT5 and short-stature in corn. >450 new hybrids/varieties expected to launch annually across corn, soybeans, vegetables, cotton and other crops Expect >20 new Seed Growth formulations to launch in the next decade, as well as 3rd Gen. BioRise microbial seed treatment in corn >35 pipeline projects/models to fuel continual improvements in FieldView recommendations /// Bayer Crop Science R&D Pipeline Update /// February 13, 202033
  • 34. Delivering World Class Innovation Key Takeaways 34 Pursuing sustainable innovation to shape the future of agriculture Delivering the leading R&D pipeline in scale, productivity and value Optimizing large and diverse germplasm library with advanced breeding technologies Leading the development of next-generation biotech traits; technology provider to the industry Unlocking new potential by combining R&D platforms, powered by data science Advancing new approaches in small molecule discovery and biologicals 1 2 3 4 5 6 /// Bayer Crop Science R&D Pipeline Update /// February 13, 2020
  • 36. Improved Dicamba & Glyphosate Premix Corn R&D Pipeline – Peak Sales Potential: €11-14bn /// Bayer Crop Science R&D Pipeline Update /// February 13, 202036 Above Ground (Lepidoptera) 4th generation Lepidoptera protection 5th generation Lepidoptera protection Annual germplasm upgrades 1 3 4 Dev. Subm.Br PBt CP Herbicide tolerance 3rd generation weed management system 4th generation weed management system with RHS2 5th generation weed management system Improved Dicamba formulations 2 3 4 Dev. Subm.PBt CPBr Next generation NemaStrike formulation Harness LCM Short Stature Corn Short Stature Corn 1 Below Ground (Coleoptera) SmartStax Pro 4th generation Coleoptera protection Vayego Goss Wilt resistance Corn Disease Shield - Annual upgrades 2 Stinkbug pipeline ARVIS 1 Acceleron - Annual upgrades Belt Smart Early Pipeline Chewing Pests Sucking Pests Nematodes Plant Health Systems New Insecticide Early Pipeline Novel PPO Herbicide2 RHS2 = Second Generation Roundup Hybridization System 1 In collaboration with BASF 2 In collaboration with Sumitomo *R&D Phases: 1 – Research, 2 – Early Development, 3 – Late Development, 4 – Registrations Filed **Product enhancement: (Life Cycle Management activities) Dev. – Under development; Subm. – Submitted for Registration Br PBt CP Breeding – incl. native traits and molecular breeding Plant Biotech – biotechnology traits Crop Protection – chemical and biological solutions applied as seed treatment, foliar or via soil Progress achieved Phases 1 through 4 Status indication for Life Cycle Management Items Strategic collaborations Represents annual advancements and upgrades Pipeline status highlighting significant development, progress or advancement in R&D Pipeline (pink) and Key Life Cycle Management (blue) work. NEW NEW New Herbicide MOA NEW NEW PEST MANAGEMENT – ~15% of Peak Sales Potential YIELD & ABIOTIC STRESS – ~65% of Peak Sales Potential R&D Target Technology Phase* Enhancement** Delaro Complete adv. to launch DISEASE MANAGEMENT – ~5% of Peak Sales Potential WEED MANAGEMENT – ~15% of Peak Sales Potential R&D Target Technology Phase* Enhancement** adv. to launch NEW adv. to launch 3rd generation BioRise microbial seed treatment New Biological Early Pipeline
  • 37. Soybean R&D Pipeline – Peak Sales Potential: €6-8bn /// Bayer Crop Science R&D Pipeline Update /// February 13, 202037 INTACTA RR2 PRO 2nd generation insect protection 3rd generation insect protection Belt Smart Annual germplasm upgrades 2 3 4 Dev. Subm.Br PBt CP Herbicide tolerance XtendFlex 4th generation weed management system 5th generation weed management system New Soybean selective herbicide 3-way mixture Improved Dicamba formulations Indiflin®2 2 3 4 Dev. Subm.PBt CPBr Plant health systems 2nd generation Soy Cyst Nematode resistance Next generation NemaStrike formulation Soy Disease Shield 1 1 Aphid & Whitefly pipeline Novel Sucking Pest Solution Stinkbug Pipeline ARVIS Novel Mite Solution Acceleron Upgrades New Fungicide Improved Dicamba & Glyphosate Premix Asian Soybean Rust Early Pipeline Chewing Pests Sucking Pests Nematodes New Herbicide MOA High Yielding Soy1 Novel PPO Herbicide2 1 In collaboration with BASF 2 In collaboration with Sumitomo *R&D Phases: 1 – Research, 2 – Early Development, 3 – Late Development, 4 – Registrations Filed **Product enhancement: (Life Cycle Management activities) Dev. – Under development; Subm. – Submitted for Registration Br PBt CP Breeding – incl. native traits and molecular breeding Plant Biotech – biotechnology traits Crop Protection – chemical and biological solutions applied as seed treatment, foliar or via soil Progress achieved Phases 1 through 4 Status indication for Life Cycle Management Items Strategic collaborations Represents annual advancements and upgrades Pipeline status highlighting significant development, progress or advancement in R&D Pipeline (pink) and Key Life Cycle Management (blue) work. NEW NEW NEW adv. to launch NEW NEW R&D Target Technology Phase* Enhancement** PEST MANAGEMENT - ~20% of Peak Sales Potential YIELD & ABIOTIC STRESS - ~20% of Peak Sales Potential New Insecticide Seed Treatment CropStar LCM Seed Treatment NEW NEW Delaro Complete adv. to launch R&D Target Technology Phase* Enhancement** DISEASE MANAGEMENT - ~30% of Peak Sales Potential WEED MANAGEMENT - ~30% of Peak Sales Potential New Soybean selective herbicide 2-way mixture NEW NEW New Biological Early Pipeline
  • 38. Cereals, Oilseed Rape, Cotton, Sugarbeets, Rice R&D Pipelines – Peak Sales Potential: €3-4bn1 /// Bayer Crop Science R&D Pipeline Update /// February 13, 202038 2 3 4 Dev. Subm.Br PBt CP 2 3 4 Dev. Subm.PBt CPBr1 1 Delaro forte Cereals New Cereals Selective Herbicide Atlantis franchise extensions New Autumn Herbicides Pyrasulfotole LCM New Cereals Seed Treatment iblon New Bixafen extensions Redigo FS 25 Annual germplasm upgrades Disease package annual upgrade WEED MANAGEMENT PEST MANAGEMENT DISEASE MANAGEMENT YIELD & ABIOTIC STRESS Cotton Annual germplasm upgrades 4th Generation Herbicide Tolerance ThryvOn Technology (Lygus / Thrips cotton) 4th Generation Bollgard Novel sucking pest solution Novel Mite solution New Insecticide Next generation NemaStrike formulation New Insecticide Early Pipeline Chewing Pests Sucking Pests Nematodes Early Pipeline Selective Herbicides New Fungicidal Seed Treatment Improved Dicamba formulations Improved Dicamba & Glyphosate Premix adv. to launch Novel PPO Herbicide2 1 Peak Sales Potential Split: Yield & Abiotic stress = ~15%, Pest Management = ~20%, Disease Management = ~25%, Weed Management = ~40% 2 In collaboration with Sumitomo *R&D Phases: 1 – Research, 2 – Early Development, 3 – Late Development, 4 – Registrations Filed **Product enhancement: (Life Cycle Management activities) Dev. – Under development; Subm. – Submitted for Registration Br PBt CP Breeding – incl. native traits and molecular breeding Plant Biotech – biotechnology traits Crop Protection – chemical and biological solutions applied as seed treatment, foliar or via soil Progress achieved Phases 1 through 4 Status indication for Life Cycle Management Items Strategic collaborations Represents annual advancements and upgrades Pipeline status highlighting significant development, progress or advancement in R&D Pipeline (pink) and Key Life Cycle Management (blue) work. R&D Target Technology Phase* Enhancement** PEST MANAGEMENT WEED MANAGEMENT YIELD & ABIOTIC STRESS R&D Target Technology Phase* Enhancement** adv. to launch adv. to launch adv. to launch adv. to launch NEW NEW NEW
  • 39. Cereals, Oilseed Rape, Cotton, Sugarbeets, Rice R&D Pipelines (con’t.) /// Bayer Crop Science R&D Pipeline Update /// February 13, 202039 2 3 4 Dev. Subm.Br PBt CP 2 3 4 Dev. Subm.PBt CPBr1 1 Vayego OilseedRape DEKALB LibertyLink Canola TruFlex Canola with Roundup Ready TruFlex Roundup Ready TruFlex Roundup Ready + LibertyLink Dicamba-Tolerant Canola New Insecticide Annual germplasm upgrades including Podshatter WEED MANAGEMENT PEST MANAGEMENT YIELD & ABIOTIC STRESS Rice Annual germplasm upgrades Annual hybrid production Council Activ Sucking Pest Tolerance New Insecticide Super Nativo PEST MANAGEMENT YIELD & ABIOTIC STRESS WEED MANAGEMENT Early Pipeline DISEASE MANAGEMENT adv. to launch *R&D Phases: 1 – Research, 2 – Early Development, 3 – Late Development, 4 – Registrations Filed **Product enhancement: (Life Cycle Management activities) Dev. – Under development; Subm. – Submitted for Registration Br PBt CP Breeding – incl. native traits and molecular breeding Plant Biotech – biotechnology traits Crop Protection – chemical and biological solutions applied as seed treatment, foliar or via soil Progress achieved Phases 1 through 4 Status indication for Life Cycle Management Items Strategic collaborations Represents annual advancements and upgrades Pipeline status highlighting significant development, progress or advancement in R&D Pipeline (pink) and Key Life Cycle Management (blue) work. Sugarbeets WEED MANAGEMENT NEW2nd generation weed management system2 R&D Target Technology Phase* Enhancement** R&D Target Technology Phase* Enhancement** 1 Peak Sales Potential Split: Yield & Abiotic stress = ~15%, Pest Management = ~20%, Disease Management = ~25%, Weed Management = ~40% 2 In collaboration with KWS adv. to launch Council Star Council Xtra NEW NEW adv. to launch adv. to launch adv. to launch adv. to launch
  • 40. adv. to launch Horticulture R&D Pipeline – Peak Sales Potential: €3-4bn /// Bayer Crop Science R&D Pipeline Update /// February 13, 202040 ~150 advancements to launch Highlights include SVTH2900 Tomato, Shoreline Watermelon, Pinanta Tomato, GALVIR Galia Melon and Hot Pepper SVHA-1448 2 3 4 Dev. Subm.Br PBt CP 2 3 4 Dev. Subm.PBt CPBr R&D Target Technology Phase* Enhancement** 1 1 Novel Mite Solution New Herbicide MOA New Insecticide Vayego Aphid & Whitefly pipeline Novel Sucking Pest Solution SIVANTO brand family extension LUNA brand family extension Fluoxapiprolin Downy Mildew resistant lettuce Geminivirus resistant tomato DISEASE MANAGEMENT - ~25% of Peak Sales Potential Dicot Leaf & Fruit Diseases Oomycetes Plant Health Systems WEED MANAGEMENT - ~10% of Peak Sales Potential Early Pipeline YIELD AND ABIOTIC STRESS - ~45% Peak Sales Potential PEST MANAGEMENT - ~20% of Peak Sales Potential Chewing Pests Sucking Pests Early Pipeline Nematodes Velum Next gen nematode resistant tomato *R&D Phases: 1 – Research, 2 – Early Development, 3 – Late Development, 4 – Registrations Filed **Product enhancement: (Life Cycle Management activities) Dev. – Under development; Subm. – Submitted for Registration Br PBt CP Breeding – incl. native traits and molecular breeding Plant Biotech – biotechnology traits Crop Protection – chemical and biological solutions applied as seed treatment, foliar or via soil Progress achieved Phases 1 through 4 Status indication for Life Cycle Management Items Strategic collaborations Represents annual advancements and upgrades Pipeline status highlighting significant development, progress or advancement in R&D Pipeline (pink) and Key Life Cycle Management (blue) work. R&D Target Technology Phase* Enhancement** adv. to launch adv. to launch adv. to launch Alion LCM Roundup LCM NEW NEW NEW adv. to launch NEW Serenade ASO New Biological Fungicide High concentrated Biological High concentrated Biological Yield & Quality Seed- & Soil-borne Diseases Early Pipeline New Biological Insecticide BioAct DC Serenade ASO Bacteria adv. to launch
  • 41. NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW NEW 2 3 4 Digital R&D Pipeline /// Bayer Crop Science R&D Pipeline Update /// February 13, 202041 1 Seed Selection (US, Corn) Seed Advisor (US, Corn) Advanced Seed Prescriptions (Brazil, Corn) Advanced Seed Prescriptions (EU, Corn) Advanced Seed Prescriptions (Argentina, Corn) *R&D Phases: 1 – Proof of Concept, 2 – Development, 3 – Pre-Commercial, 4 – Commercial / Launch, 5 – Post-Commercial / Enhancement ** All crops and/or regions enabled in FieldView P = Phosphorus K = Potassium Pipeline status with color highlighting significant development, progress or advancement in R&D and commercial workProgress achieved Phases 1 through 5 R&D Target Phase* 5 Seed Selection (US, Soy) Designed Hybrid Side-by-Sides (US, Corn) Advanced Seed Prescriptions (US, Soy) FIELD INSIGHTS Field Health and Scouting Insights (EU, Corn) Advanced Irrigation Recommendations (US, Corn) Disease Vulnerability (US, Soy) Disease Vulnerability (US, Corn) Disease Identification (Global, Wheat) Disease Identification (US, Corn) Disease Identification (US, Soy) Disease Vulnerability (EU, Wheat) SEEDS AND PLANTING Fungicide ROI (Canada, Canola) Fungicide ROI (US, Soy) Fungicide ROI (EU, Wheat) Fungicide ROI (US, Corn) NEW NEW NEW NEW 2 3 41 Automated Experiment Design (Global, All Crops**) Automated Experiment Analysis (Global, All Crops**) Replant Models (US, Corn) Field Productivity V2 (US, Corn) Yield Prediction (US, Soy) R&D Target Phase* 5 Yield Prediction (EU, Wheat) Yield Prediction (US, Corn) Seed Supply Planning (US, Corn) FERTILITY P & K Scripting (US, All Crops**) P & K Scripting (Brazil and Argentina, Corn) Short Corn Fertility Advanced Nitrogen Scripting (US, Wheat) Advanced Nitrogen Scripting (US, Corn) YIELD ANALYTICS MEASUREMENTS On-Equipment Soil Mapping (US, All Crops**) On-Equipment Imaging (US, Corn) On-Equipment Spray Sensing (US, All Crops**) NEW NEW