Corporate Profile and Structure

Corporate Structure

Corporate structure as of December 31, 2018

The management structure of the Bayer Group comprises three divisions – Pharmaceuticals, Consumer Health and Crop Science – and the Animal Health business unit, which are also our reporting segments. The corporate functions, Business Services and the service company Currenta support the operational business.

Bayer Group Structure in 2018

Bayer Group Structure in 2018 (chart)

Pharmaceuticals concentrates on prescription products, especially for cardiology and women’s health care, and on specialty therapeutics focused on the areas of oncology, hematology and ophthalmology. The division also comprises the radiology business, which markets diagnostic imaging equipment together with the necessary contrast agents. Our portfolio includes a range of key products that are among the world’s leading pharmaceuticals for their indications. The prescription products from Pharmaceuticals are primarily distributed through wholesalers, pharmacies and hospitals.

Consumer Health is a leading supplier of nonprescription ( OTC (over-the-counter) designates the business with nonprescription medicines. = over-the-counter) medicines, medical products, cosmetics and other self-care solutions in the categories of dermatology, nutritional supplements, pain and cardiovascular risk prevention, digestive health, allergy, cough and cold, foot care and sun protection. The products are generally sold by pharmacies, supermarket and drugstore chains, online retailers and other large retailers.

Crop Science is the world’s leading agriculture enterprise following the acquisition of Monsanto, with businesses in crop protection and seeds. We offer a broad portfolio of high-value seeds, improved plant traits, innovative chemical and biological crop protection products, digital solutions and extensive customer service for sustainable agriculture. We market these products primarily via wholesalers and retailers or directly to farmers. In addition, we market pest and weed control products and services to professional users outside the agriculture industry. Most of our crop-protection products are manufactured at the segment’s own production sites. Numerous decentralized formulation and filling sites enable the company to quickly react to the needs of local markets. The breeding, propagation, production and / or processing of seeds, including seed dressing, takes place at locations close to our customers, either at our own facilities or under contract.

Animal Health is a global leader in its field. We develop innovative products and solutions for the prevention and treatment of diseases in companion and farm animals. We market our animal health products globally through veterinarians and other distribution channels such as pharmacies or retail stores.

The corporate functions and Business Services operate as Group-wide competence centers in which business support services are bundled. Currenta is the service company responsible for managing and operating the Chempark sites in Leverkusen, Dormagen and Krefeld-Uerdingen.

More information on the segments’ products and activities is contained in the following table:

Products and Activities of the Segments

Indication / Application / Business

 

Core activities and markets

 

Main products and brands1

1

The order of the products listed is no indication of their significance.

Pharmaceuticals

 

 

 

 

Cardiology

 

Hypertension, pulmonary hypertension, heart attack and stroke, thrombosis, coronary artery disease (CAD), peripheral artery disease (PAD)

 

Xarelto™, Adalat™, Aspirin™ Cardio, Adempas™

Oncology

 

Liver cancer, renal cell carcinoma, thyroid carcinoma, prostate cancer, colorectal cancer, gastrointestinal stromal tumors (GIST), follicular lymphoma, solid tumors with NTRK gene fusions

 

Nexavar™, Xofigo™, Stivarga™, Aliqopa™, Vitrakvi™

Ophthalmology

 

Visual impairment due to age-related macular degeneration (AMD), diabetic macular edema (DME) or retinal vein occlusion (RVO)

 

Eylea™

Hematology

 

Hemophilia A

 

Kogenate™ / Kovaltry™ / Jivi™

Women’s health

 

Contraception, gynecological therapy

 

Mirena™ product family, Yaz™ / Yasmin™ / Yasminelle™; Visanne™

Infectious diseases

 

Bacterial infections

 

Avalox™ / Avelox™, Cipro™, Ciprobay™

Radiology

 

Contrast agents; diagnostic imaging equipment for use with contrast agents

 

Gadovist™, Ultravist™, Medrad Spectris Solaris™, Medrad Stellant™

Neurology

 

Multiple sclerosis

 

Betaferon™ / Betaseron™

Consumer Health

 

 

 

 

Dermatology

 

Wound care, skin care, skin and intimate health

 

Bepanthen™, Canesten™

Nutritionals

 

Multivitamin products, dietary supplements

 

One A Day™, Elevit™, Berocca™, Supradyn™, Redoxon™

Pain

 

General pain relief

 

Aspirin™, Aleve™

Digestive health

 

Digestive health complaints

 

MiraLAX™, Rennie™, Iberogast™

Allergy

 

Allergies

 

Claritin™

Cough and cold

 

Cough and cold

 

Aspirin™, Alka-Seltzer™, Afrin™

Foot care

 

Foot care

 

Dr. Scholl’s™

Sun protection

 

Sun protection

 

Coppertone™

Crop Science

 

 

 

 

Herbicides

 

Chemical crop protection products to control weeds

 

Roundup™, Adengo™, Alion™, Corvus™, Atlantis™, Harness™, Warrant™

Corn Seed & Traits

 

Seeds and traits for corn

 

Dekalb™, SmartStax™ RIB Complete, VT Double™ PRO, VT Triple™ PRO

Soybean Seed & Traits

 

Seeds and traits for soybeans

 

Asgrow™, Intacta RR2PRO™ Roundup Ready 2 Xtend™, Roundup Ready 2 Yield™

Fungicides

 

Biological and chemical products to protect crop plants from fungal diseases

 

Flint™, Fox™, Luna™, Nativo™, Prosaro™, Serenade™, Xpro™

Insecticides

 

Biological and chemical products to protect crop plants from harmful insects and their larvae

 

BioAct™, Confidor™, Movento™, Sivanto™

Environmental Science

 

Products for professional pest control, vector control, forestry, golf courses and parks, railway tracks

 

Ficam™, Maxforce™, Esplanade™, K‑Othrine™

Vegetable Seeds

 

Vegetable seeds

 

Seminis™, DeRuiters™

Digital Agriculture

 

Digital applications for agriculture

 

Climate FieldView™

Other

 

Seeds and traits for cotton, oilseed rape / canola, rice and wheat as well as biological and chemical seed treatment products to protect against fungal diseases and pests

 

Gaucho™, Bollgard™ II, Bollgard™ II XtendFlex™, Deltapine™

Animal Health

 

 

 

 

Companion animals business

 

Veterinary medicines and solutions to protect and maintain the health and wellbeing of companion animals, focusing on antiparasitics and anti-infectives

 

Advantage™ product family, Seresto™, Drontal™ product family, Baytril™

Farm animals business

 

Veterinary medicines and solutions to treat and prevent parasitic diseases, anti-infectives, immunostimulants, pharmacological treatments and farm hygiene products

 

Baytril™, Cydectin™

We operate sites around the world, and some are used by multiple segments. As of December 31, 2018, the Bayer Group comprised 420 consolidated companies in 90 countries.

Significant research and development location

Significant production location

Significant administrative site

Management functions of Bayer AG

As the parent company of the Bayer Group, Bayer AG – represented by its Board of Management – performs the principal management functions for the entire company. This mainly comprises the Group’s strategic alignment, resource allocation, and the management of financial affairs and managerial staff, along with the management of the Group-wide operational business of the segments. In addition, Bayer AG also performs the corresponding parent company functions for Pharmaceuticals and Crop Science in Germany.

Changes to the corporate structure

On June 7, 2018, Bayer completed the acquisition of the Monsanto Company, St. Louis, Missouri, United States (Monsanto), for US$63 billion, including debt. The divestments to BASF required to fulfill the antitrust conditions were completed on August 1, 2018, for all businesses earmarked for divestment excluding the vegetable seed business, which was divested as of August 16, 2018. The closing of these transactions led to the hold separate order being lifted and enabled the integration of Monsanto into the Bayer Group to begin.

See Chapter “Key Events” for further details of the Monsanto acquisition

See Chapter “About this Report” for information on reporting thresholds

In connection with the acquisition, the structure was adjusted as of the second quarter of 2018 to reflect the relative sizes of the various strategic business entities at that time and moving forward. Due to the relative sizes of the former Monsanto businesses “Corn seed and traits” and “Soybean seed and traits,” we now report our corresponding strategic business entities Corn Seed & Traits and Soybean Seed & Traits separately. The former Monsanto business “Agricultural Productivity” was allocated among Herbicides, Environmental Science and Other, while “Cotton seed and traits” and “All other crops seeds and traits” are reported under Other and the “Vegetable seeds” business was allocated to our Vegetable Seeds business entity. Due to its relative size, we no longer report our SeedGrowth business separately, but under Other. Regional reporting is not impacted by these changes. The figures for previous reporting periods have been adjusted accordingly.

A comparison of the Crop Science reporting structure in effect until December 31, 2017, and the reporting structure in effect since the second quarter of 2018 is shown in the following table.

Realigned Crop Science Structure

Reporting structure until Dec. 31, 2017

 

Reporting structure as of Dec. 31, 2018

Crop Protection / Seeds

 

Crop Protection

 

Herbicides

 

Herbicides

 

Corn Seed & Traits

 

Soybean Seed & Traits

Fungicides

 

Fungicides

Insecticides

 

Insecticides

SeedGrowth

 

Seeds

 

Environmental Science

 

Environmental Science

 

Vegetable Seeds

 

Other

Crop Science (total)

 

Crop Science (total)

The Monsanto business is included in full from the date the acquisition closed. The divestments to BASF are not included in the figures from the dates the transactions were completed. The reported portfolio effect on the sales of Crop Science (and of the Bayer Group) therefore includes the contribution from the Monsanto business since June 7, 2018, less the contribution of the divested businesses to Q3 2017 sales after August 1 and 16, respectively.

Compare to Last Year