Independent Auditor’s Report

To: Bayer Aktiengesellschaft, Leverkusen

Report on the audit of the consolidated financial statements and the
combined management report

Audit opinions

We audited the consolidated financial statements of Bayer Aktiengesellschaft, Leverkusen, and its subsidiaries (the Group) – consisting of the consolidated balance sheet as of December 31, 2018, the consolidated income statement and consolidated statement of comprehensive income, the consolidated statement of cash flows and the consolidated statement of changes in equity for the fiscal year from January 1 through December 31, 2018 and also the Notes to the consolidated financial statements, together with a summary of significant accounting methods. Furthermore, we audited the management report of Bayer Aktiengesellschaft, Leverkusen, combined with the management report of the parent company, for the fiscal year from January 1 through December 31, 2018. In accordance with German statutory provisions, we did not audit the contents of the components of the combined management report named in the Appendix to our auditors’ report.

In our opinion, based on the findings of our audit,

  • the accompanying consolidated financial statements comply in all material respects with the IFRS as adopted by the EU and the additional requirements of German law pursuant to § 315e (1) HGB and give a true and fair view of the net assets and financial position of the Group as of December 31, 2018 and of its results of operations for the fiscal year from January 1, 2018 through December 31, 2018; and
  • the accompanying combined management report provides a suitable overall view of the Group’s situation. In all material respects, this combined management report is consistent with the consolidated financial statements, complies with German legal requirements, and suitably presents the opportunities and risks of future development. Our audit opinion on the combined management report does not extend to the content of the components of the combined management report mentioned in the Appendix to the auditors’ report.

In accordance with Section 322 (3.1) HGB, we state that our audit has not led to any objections to the correctness of the consolidated financial statements and the combined management report.

Basis for the audit opinions

We conducted our audit of the consolidated financial statements and the combined management report in accordance with Section 317 HGB and the EU Auditors’ Regulation (No. 537/2014; hereafter referred to as “EU Audit Regulation”) in compliance with the generally accepted German standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). We conducted our audit of the consolidated financial statements with additional regard for the International Standards on Auditing (ISA). Our responsibility pursuant to these regulations, principles, and standards is described in more detail in the section “Auditor’s responsibility for the audit of the consolidated financial statements and the combined management report” of our Audit Report. We are independent of the Group companies in accordance with European and German commercial and professional regulations and have fulfilled our other German professional obligations in accordance with these requirements. Furthermore we state, in accordance with Article 10 (2f) EU Audit Regulation, that we have rendered no inadmissible non-audit services within the meaning of Article 5 (1) EU Audit Regulation. We believe that the audit evidence we obtained is sufficient and appropriate to provide a basis for our audit opinions on the consolidated financial statements and combined management report.

Particularly important audit issues in the audit of the consolidated financial statements

Particularly important audit issues are those issues that we considered – at our due discretion – to be the most significant in our audit of the consolidated financial statements for the fiscal year from January 1 through December 31, 2018. These issues have been taken into account in connection with our audit of the consolidated financial statements as a whole and in forming our opinion thereon; we do not express a separate opinion on these issues.

We present below what we consider to be the particularly important audit issues:

  1. Acquisition of Monsanto Company
  2. Intrinsic value (recoverability) of goodwill and brand rights
  3. Depiction of risks from product-related legal disputes
  4. Depiction of research and development costs
  5. Financial instruments – hedge accounting
  6. Adjustments to EBITDA and EBIT for special items

We have structured our presentation of these particularly important audit issues as follows:

  1. Description of issue (including reference to associated disclosures in the consolidated financial statements)
  2. Audit approach

1. Acquisition of Monsanto Company

  1. On June 7, 2018, the Bayer Group acquired 100% of the outstanding shares of Monsanto Company, based in St. Louis, Missouri, United States, (Monsanto), for a purchase price of EUR 48bn. Bayer accounts for the business combination in accordance with IFRS 3.

    The assets, liabilities, and contingent liabilities recognized at fair value in connection with the acquisition of the Monsanto business are based on values from the purchase price allocation performed by Bayer on the basis of a preliminary valuation opinion prepared on February 8, 2019, by KPMG Aktiengesellschaft, Munich, as a neutral expert. Previously unrecognized intangible assets were recognized primarily for seed and trait technologies, herbicides and digital platforms (EUR 17,152m), research and development projects (EUR 4,637m), and product brand rights (EUR 3,941m). The fair values underlying the purchase price allocation are derived from expert valuations based on assetspecific, maturity-dependent discount rates (6.3% to 11.8%) and were determined on the basis of Bayer’s planning as of the acquisition date, with the technologies in particular taking appropriate account of separability and economic value added. Taking into account the other net assets measured at fair value, goodwill amounts to EUR 24,455m (51% of the consideration transferred). The write-downs to assets recognized at fair value, in particular technologies and brands, resulted in expenses of EUR 1,045m in the year under review. The goodwill recognized in the balance sheet is subject to an annual impairment test (cf. topic 2.).

    Within the framework of our audit, the matter was of particular significance due to the complexity of the transaction and the associated risk of material misrepresentations of the net assets, financial position, and results of operations as well as the assumptions and discretionary estimates made by Management in carrying out the purchase price allocation.

    The Company’s disclosures on the acquisition of the Monsanto Group are contained in Section 5.2 of the Notes to the consolidated financial statements.
  2. Within the framework of our audit we verified, among other things on the basis of the inter-company agreements and the stipulations of the antitrust authorities as well as the criteria defined in IFRS 10, Management’s assessment that Bayer took control of Monsanto on June 7, 2018, and is required to consolidate it in the consolidated financial statements.

    Within the framework of the audit of the preliminary purchase price allocation, we evaluated the consideration transferred by Bayer and the methodical approach of the external appraiser engaged by Management with regard to the identification of the acquired assets and the conceptual assessment of the valuation models, taking into account the requirements of IFRS 3. In consultation with our internal valuation specialists, we reconstructed the valuation methods applied, taking into account the requirements of IFRS 13. We analyzed assumptions and discretionary estimates such as growth rates, capital costs, license rates or remaining useful lives to determine the fair values of the acquired and identifiable assets and liabilities and contingent liabilities assumed at the acquisition date to determine whether these correspond to general and industry-specific market expectations. We reconstructed the models on which the valuations are based and plausibilized the expected future cash flows adduced and compared the fair values with the assumptions and expectations of expert external market participants at the time of acquisition. One emphasis of our audit was on determining the fair values of technologies and research projects.

    We also examined whether the accounting methods complying with Bayer accounting principles were applied uniformly at the Monsanto companies and whether the tax effects of the business combination were recognized in the balance sheet. We retraced the presentation of the initial consolidation, including the non-controlling interests, in the consolidation system. We also audited the disclosures in the notes to the consolidated financial statements relating to the acquisition of the Monsanto Group according to the relevant requirements of IFRS 3.

2. Intrinsic value (recoverability) of goodwill and brand rights

  1. In the consolidated financial statements, an amount of EUR 38,146m (30% of total Group assets) is reported under the balance sheet item “Goodwill”. In addition, brand rights of EUR 9,104m (7% of the Group’s total assets) are reported under “Other intangible assets”. The Company allocates goodwill to the strategic business units or groups of strategic business units within the Bayer Group. Regular impairment tests of goodwill and case-related impairment tests of brand rights compare the respective carrying amounts with their recoverable amounts. Fundamentally, the recoverable amount is determined on the basis of the fair value less costs to sell. The present value of future cash flows is used as a basis, since as a rule no market values are available for the individual strategic business units. The present value is determined using discounted cash flow models based on the Bayer Group’s four-year operating planning drawn up by Management and approved by the Supervisory Board and perpetuated with assumptions about long-term growth rates. Discounting is based on the weighted average cost of capital of the reporting segments concerned. The result of this valuation depends to a large extent on the estimates by the Management of the future cash flows of the strategic business unit concerned and the discount rate used and is therefore fraught with considerable uncertainty. In the light of this, and owing to the underlying complexity of the valuation models, this issue was of particular importance within the framework of our audit.

    The Company’s disclosures on goodwill and brand rights are contained in Sections 3 and 14 of the
    Notes to the consolidated financial statements.
  2. In our audit, among other things we reconstructed the methodology used to perform the impairment tests and assessed the calculation of the weighted cost of capital. We convinced ourselves of the appropriateness of the future cash inflows used in the valuation, among other things by recording and critically assessing the underlying planning process. We also compared this information with the current budget from the four-year plan drawn up by Management and approved by the Supervisory Board, and reconciled it with general and industry-specific market expectations. For this, we also convinced ourselves that the costs of the Group functions included in the Corporate Functions and Consolidation segment of segment reporting were appropriately taken into account in the impairment test of the strategic business unit concerned. We studied intensively the parameters used to determine the discount rate applied and assessed the completeness and correctness of the calculation scheme. Owing to the material significance of goodwill, we further performed additional sensitivity analyses of our own for the strategic business units (carrying amount in comparison to the recoverable amount).

3. Depiction of risks arising from product-related legal disputes

  1. Bayer Group companies are involved in legal and out-of-court proceedings with public authorities, competitors, and other parties. These give rise to legal risks, in particular in the areas of product liability, competition and anti-trust law, patent law, tax law, and environmental protection.

    In addition, by January 28, 2019, Monsanto, a subsidiary of Bayer AG, had been served in the United States with actions for compensation and punitive damages by approximately 11,200 plaintiffs alleging that their contact with products containing glyphosate manufactured by Monsanto had resulted in damage to their health. In addition, by January 28, 2019, the Bayer Group had been served in the United States with claims for compensation and punitive damages from about 24,900 users of the product Xarelto™. By January 28, 2019, the Bayer Group had been served with lawsuits in the USA by about 29,400 users of EssureTM, in each of which compensation and punitive damages were likewise claimed. Against the background of pending and expected product liability lawsuits relating to the product MirenaTM, by January 28, 2019 the Bayer Group had been served in the United States with lawsuits from approximately 2,360 users of MirenaTM.

    Whether a pending legal dispute makes the recognition of a provision to cover the risk necessary and, if so, to what extent, is determined to a large extent by estimates and assumptions by Management. Against this background, and in view of the amount of the claims asserted, the above-mentioned product-related disputes of the Bayer Group were of particular significance from our point of view.

    The disclosures about and explanations of the legal disputes mentioned are contained in Section 29 of the Notes to the consolidated financial statements.
  2. Within the framework of our audit, we assessed, among other things, the process established by the Company to ensure the recognition, the estimate of the outcome of the proceedings, and the accounting presentation of a legal dispute. Furthermore, we held regular discussions with the Company’s internal legal department in order to be informed about current developments and the reasons that led to the corresponding estimates. The development of material legal disputes, including the estimates by Management with regard to the possible outcome of proceedings, was made available to us in writing by Bayer AG’s internal legal department. As of the closing date, we furthermore obtained external attorney’s certificates, which we compared with the risk assessment made by Management about the product-related disputes named in the “Description of the facts” section. Taking these estimates into account, we also critically assessed the assumptions underlying the provisions for expected defense costs and checked the amount of the provisions for plausibility on the basis of experience from similar proceedings in the past and on other evidence.

4. Depiction of restructuring issues

  1. At the end of 2018, the Management of Bayer Aktiengesellschaft announced a comprehensive restructuring program for the entire Bayer Group. The program essentially involves the cutback of up to 12,000 jobs in the next three fiscal years. A provision of EUR 611m was recognized for the severance payment obligations specified up to the end of the fiscal year. A not inconsiderable part of the job cuts is attributable to Germany, where redundancies for operational reasons are excluded until 2025 owing to works agreements. In order to implement the restructuring program, appropriate discussions with employee bodies were already held in 2018, as a basis for job cuts and for the recognition of restructuring provisions. In our opinion, this matter was of particular importance for our audit, as the recognition and measurement of the provision are to a large extent based on estimates and assumptions made by Management.

    The Group’s disclosures on the restructuring provision are contained in Section 23 of the Notes to the consolidated financial statements.
  2. We investigated whether a restructuring provision that is in accordance with the definition in IAS 37.10 has been recognized. To this end, we verified compliance with the general recognition and measurement requirements for provisions, including the criteria of IAS 37.70 et seq. that further specify these requirements and – insofar as provisions for employee benefits in connection with the termination of employment are involved – with the relevant provisions of IAS 19. For this purpose, we received and verified the corresponding evidence and calculation documents from Management. We critically assessed and verified the plausibility of the estimates and assumptions of Management on which the evidence and calculation principles are based as to the extent to which the recognition and amount of the provisions are appropriate. In particular, we evaluated information documents (resolutions, minutes, presentations) supplied to employee representatives in Germany as to whether the employees were sufficiently informed thereby in concrete terms about the restructuring programs and individual components of the planned restructuring measures in the 2018 fiscal year. We furthermore investigated whether and to what extent Management had informed the employees in the various departments and/or at the various locations about the planned job cuts. Based on this, we examined whether the criteria for the recognition of the provision had been met as of the balance sheet date. In order to check the plausibility of the amount of the provisions, we analyzed, among other things, the job reduction programs developed in the personnel departments with regard to the premises set for the amount of severance offers to employees and the expected acceptance rates. We discussed the restructuring programs in detail with those responsible in the personnel departments and critically questioned the premises that had been set. We also examined the disclosures in the Notes to the consolidated financial statements relating to the restructuring measures in the light of the relevant requirements of IAS 37.

5. Financial instruments - hedge accounting

  1. Bayer Group companies conclude a large number of different derivative financial instruments to hedge against currency, commodity price, and interest rate risks from ordinary business operations. The basis for this is the hedging policy prescribed by Management, which is documented in appropriate internal guidelines. The currency risk essentially results from sales and procurement transactions, and also financing transactions in foreign currencies. Raw material price risks are primarily associated with procurement transactions, in particular the procurement of propagated seed. The aim of interest rate hedging is to achieve a reasonable relationship between variable and fixed interest rates. Derivative financial instruments are recognized at their fair value as of balance sheet date. The positive fair values of all derivative financial instruments used as hedges amount to EUR 204m as of the closing date (i.e., 0.2% of total Group assets), the negative fair values amounted to EUR 482m (i.e., 0.4% of total Group assets). To the extent that the financial instruments used by the Bayer Group are effective hedges of future cash flows under hedge accounting in accordance with IFRS 9, changes in fair value are recognized in equity until the due date of the hedged cash flow (effective portion) over the term of the hedge relationship. As of the balance sheet date, a cumulative amount of EUR 115m had been recognized as expenses and income not affecting pre-tax profit or loss. From our point of view, these issues were of particular significance due to the high complexity and large number of transactions as well as the extensive accounting and reporting requirements imposed by IFRS 9, which is to be applied for the first time in 2018.

    The disclosures on hedge accounting are contained in Sections 3 and 27 of the Notes to the consolidated financial statements.
  2. Within the framework of our audit, and with the support of our internal specialists from the Financial Risk unit, we assessed the contractual and financial fundamentals of the financial instruments, among other things, and reconstructed the accounting, including the effects on equity and earnings of the various hedging transactions. Jointly with our specialists, we also assessed the Company’s internal control system in the area of derivative financial instruments, including the internal monitoring of compliance with the hedging policy, and reviewed the controls with regard to design, implementation, and effectiveness. Furthermore, while auditing the fair value measurement of the financial instruments, we also checked, on the basis of market data and within the framework of our risk assessment, the calculation methods of representatively selected samples and reconstructed the correct implementation of the methods in the system. We also based our assessment of the completeness of the transactions recognized on a portfolio comparison with the counterparties. In order to audit the effectiveness of the hedging transactions, we analyzed the various methods (prospectively critical term match method; retrospectively dollar offset method) and, within the framework of our risk assessment, traced their correct implementation in the system. With regard to the expected cash flows, we essentially assessed the past hedging ratios in retrospect.

6. Adjustments to EBITDA and EBIT for special items

  1. For management and analysis purposes, the Bayer Group adduces EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization, and also impairment losses and reinstatements), adjusted for special items (by their nature or amount special effects). Bayer AG’s segment reporting in the consolidated financial statements discloses adjustments of EUR 2,566m to EBIT and EUR +719m to EBITDA. EBIT adjusted for special items are used for the calculation of adjusted net income from continuing operations, which is needed to calculate adjusted earnings per share from continuing operations (core EPS). EBITDA adjusted for special items and core EPS are used by Bayer as key financial performance indicators in its capital market communications. These two key indicators are furthermore adduced as the degree of target achievement for the annual performance-based compensation of Bayer Group employees. The adjustments to EBIT and EBITDA were of particular significance within the framework of our audit, as they are made on the basis of the Bayer Group’s internal accounting guideline and there is a risk that Management might exercise their discretionary powers one-sidedly.

    The Company’s disclosures on the adjustments to EBIT and EBITDA and the derivation thereof are presented in Section 4 of the Notes to the consolidated financial statements.
  2. We reconstructed the calculation of EBIT and EBITDA adjusted for special items and critically examined the identification of the Group companies’ special items taken into account by Management. We analyzed the composition of the adjustments to determine the extent to which the individual components comply with the relevant internal guidelines for special items and have been appropriately eliminated from EBIT and EBITDA. At the same time we made use of the findings of our audit and the information provided to us by Management to examine whether the adjustments were made in accordance with the definitions and procedure set out in the notes to the combined management report and segment reporting.

Other information

Management is responsible for the other information. This other information includes:

  • the components of the combined management report named in the Appendix to the Auditors’ Report that were not audited as to their contents,
  • the declaration by Management regarding the consolidated financial statements and the combined management report pursuant to § 297 (2.4) HGB and § 315 (1.5) HGB, and
  • the remaining components of the annual report, with the exception of the audited consolidated financial statements and the combined management report and our Auditors’ Report.

Our audit opinions on the consolidated financial statements and on the combined management report do not extend to this other information and, accordingly, we express neither an opinion nor any other form of audit conclusion on them.

In connection with our audit of the consolidated financial statements, it is our responsibility to read the other information and to assess whether the other information

  • displays significant discrepancies with the consolidated financial statements, the combined management report or with our knowledge gained during the audit,
  • otherwise appears to be substantially incorrectly presented.

Should we, on the basis of our work, conclude that there is a material misrepresentation in this other information, we are required to report on this fact. We have nothing to report in this connection.

Responsibility of the Management and the Supervisory Board for the consolidated financial statements and the combined management report

Management is responsible for the preparation of consolidated financial statements which comply in all material respects with the IFRSs as adopted by the EU, and with the additional requirements of German law pursuant to Section 315e (1) HGB, and for ensuring that the consolidated financial statements give a true and fair view of the net assets, financial position, and results of operations of the Group while observing these requirements. Management is furthermore responsible for the internal controls which they have determined are necessary to enable the preparation of consolidated financial statements that are free from material misstatements, whether intentional or unintentional.

In preparing the consolidated financial statements, Management is responsible for assessing the Group’s ability to continue its business activities. Furthermore, they are responsible for disclosing matters relating to the continuation of business activities, if relevant. They are moreover responsible for accounting on the basis of the accounting policy of continuing operations, unless there is an intention to liquidate the Group or discontinue operations, or there is no realistic alternative.

Management is also responsible for preparing the combined management report, which as a whole provides a suitable view of the Group’s situation and is consistent in all material respects with the consolidated financial statements, complies with German legal requirements and suitably presents the opportunities and risks of future development. Management is further responsible for the arrangements and measures (systems) that they deem necessary to enable the preparation of a combined management report in accordance with the applicable German legal provisions and to provide sufficient suitable evidence for the assertions in the combined management report.

The Supervisory Board is responsible for monitoring the Group’s accounting process for preparing the consolidated financial statements and the combined management report.

Auditors’ responsibility for the audit of the consolidated financial statements and the combined management report

Our objective is to obtain reasonable assurance as to whether the consolidated financial statements as a whole are free from material – intentional or unintentional – misstatements, and whether the combined management report as a whole provides a suitable view of the Group’s situation and is in all material respects consistent with the financial statements and with the findings of the audit, complies with German legal requirements, and suitably presents the opportunities and risks of future development, and to issue an auditors’ report containing our audit opinions on the consolidated financial statements and the combined management report.

Reasonable assurance is a high degree of certainty, but there is no guarantee that an audit conducted in accordance with Section 317 HGB and the EU Audit Regulation, observing generally accepted auditing principles for the audit of financial statements promulgated by the Institute of Public Auditors in Germany (IDW), and in supplementary observance of the ISAs will always reveal a material misrepresentation. Misstatements may result from violations or inaccuracies and are considered material if it is reasonable to expect that they will affect, individually or collectively, the economic decisions of addressees made on the basis of these consolidated financial statements and the combined management report.

During the audit, we exercise due discretion and maintain a critical attitude. In addition to this

  • we identify and assess the risks of material misstatements – whether intentional or unintentional – in the consolidated financial statements and the combined management report, plan and perform audit procedures in response to these risks, and obtain audit evidence that is sufficient and adequate to serve as a basis for our audit opinions. The risk that material misrepresentations are not detected is higher or violations than for inaccuracies, as violations may involve fraudulent collaboration, forgeries, intentional incompleteness, misleading representations, or the overriding of internal controls.
  • we gain an understanding of the internal control system relevant to the audit of the consolidated financial statements and the arrangements and measures relevant to the audit of the combined management report to plan audit procedures that are appropriate in the circumstances, but not with the objective of expressing an audit opinion on the effectiveness of these of the Company’s systems.
  • we assess the appropriateness of the financial reporting methods applied by Management and the tenability of the estimates and related disclosures made by Management.
  • we draw conclusions on the appropriateness of the application of the going-concern accounting principle applied by Management and, on the basis of the audit evidence obtained, whether there is essential uncertainty in connection with events or circumstances that might give rise to significant doubts about the Group’s ability to continue operations. If we come to the conclusion that there is essential uncertainty, we are obliged to draw attention to the related disclosures in the consolidated financial statements and the combined management report or, if these disclosures are inappropriate, to modify our relevant audit opinion. We draw our conclusions based on the audit evidence obtained up to the date of our audit opinion. However, future events or circumstances may result in the Group no longer being able to continue its business activities.
  • we assess the overall presentation, the structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements present the underlying transactions and events in such a way that the consolidated financial statements give a true and fair view of the net assets, financial position, and results of operations of the Group in accordance with IFRSs as adopted by the EU and the additional requirements of German law pursuant to Section 315e (1) HGB.
  • we obtain sufficient suitable audit evidence for the accounting information of the companies or business activities within the Group in order to give our opinion on the consolidated financial statements and the combined management report. We are responsible for the guidance, supervision, and conduct of the audit of the consolidated financial statements. We bear sole responsibility for our audit opinions.
  • we assess the conformity of the combined management report with the consolidated financial statements, its legal compliance, and the view it provides of the Group’s situation.
  • we perform audit procedures on the forward-looking statements presented by Management in the combined management report. On the basis of adequate and suitable audit evidence, we trace in particular the significant assumptions on which Management’s forward-looking statements are based and assess the proper derivation of the forward-looking statements from these assumptions. We do not express a separate audit opinion on the forward-looking statements or on the underlying assumptions.There is a significant, unavoidable risk that future events will differ materially from the forward-looking statements.

We discuss, with those responsible for monitoring, among other things the planned scope and timing of the audit and also significant audit findings, including any deficiencies in the internal control system that we identify during our audit.

We address a declaration that we have complied with the relevant independence requirements to those responsible for monitoring and discuss with them all relationships and other issues reasonably likely to affect our independence, and the safeguards we have put in place.

On the basis of the issues which we discussed with those responsible for monitoring, we determine the issues that were most significant for the audit of the consolidated financial statements in the current reporting period and are therefore the particularly important audit issues. We describe these issues in the auditor’s report, unless laws or other legal provisions exclude the disclosure of such issues.

Other statutory and legal requirements

Other disclosures pursuant to Article 10 EU Audit Regulation

We were elected as auditors by the Annual General Meeting on May 25, 2018. We were engaged by the Supervisory Board on July 10, 2018. We have been working uninterruptedly as statutory auditors of the consolidated financial statements of Bayer Aktiengesellschaft, Leverkusen, since the 2017 fiscal year.

We declare that the audit opinions contained in this Auditor’s Report are consistent with the additional report to the Audit Committee pursuant to Article 11 EU Audit Regulation (Audit Report).

Responsible auditor

The public auditor responsible for the audit is Prof. Dr. Frank Beine.

Munich, February 20, 2019

Deloitte GmbH
Wirtschaftsprüfungsgesellschaft

Heiner Kompenhans
German Public Auditor

Prof. Dr. Frank Beine
German Public Auditor

Appendix to the Auditors’ Report: components of the combined management report that were not audited as to their contents

We did not audit the following components of the combined management report as to their contents:

  • the parts marked “audited with limited assurance” and the following sections of the non-financial statement integrated in the combined management report pursuant to Sections 289b to 289e, 315b and 315c HGB:

Section

 

Chapter

Diverse stakeholders in focus

 

Sustainability Management

Collaboration formats aimed at specific target groups

 

Sustainability Management

Binding and transparent compensation structures

 

Employees

Quality management of segments

 

Product Stewardship

Biodiversity in the segments

 

Product Stewardship

Commitment to reducing animal studies

 

Product Stewardship

Global pharmaceutical monitoring system

 

Product Stewardship

Processes in plant biotechnology

 

Product Stewardship

Training of farmers and Bayer employees

 

Product Stewardship

Occupational illnesses

 

Occupational, Plant and Transportation Safety

Other direct air emissions

 

Environmental Protection

Water use in the Bayer Group 2018

 

Environmental Protection

Waste by means of disposal

 

Environmental Protection

Liaison offices – Contact with political stakeholders

 

Compliance

  • the corporate governance statement pursuant to Section 289f and Section 315d HGB contained in Chapter 4.1 of the combined management report.

Furthermore, we did not audit the content of the following disclosures that are not normally part of the management report. Disclosures that are not normally part of the management report in the combined management report are disclosures that are neither required by Sections 289 to 289f, 315 to 315d of the German Commercial Code (HGB) nor by DRS 20.

  • The information in section 2.2.2 of the combined management report on pro forma sales by strategic business unit of the Crop Science Division.
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