Bayer-Stock

Investor Information

Bayer stock recovered somewhat in the second quarter following the drop in the share price in the first three months of the year. Including the dividend of €1.35 per share paid in April, the second-quarter performance of our shares came to 7.9 percent.

However, with a closing price of €53.46 on June 30, 2008, the stock was down 14.5 percent from the end of 2007 (performance: –12.4 percent). The DAX lost 20.4 percent over the same period, closing at 6,418 points. The European reference index EURO STOXX 50 fell even more sharply, closing the second quarter down 21.8 percent from the start of the year, at 5,076 points.

The index provider MSCI Barra reclassified Bayer stock from the “Diversified Chemicals” category of the “Materials“ sector to the “Pharmaceuticals” category of the “HealthCare” sector with effect from July 1, 2008 reflecting the strategic emphasis of our activities on the HealthCare business.

At the Annual Stockholders’ Meeting on April 25, 2008 in Cologne, 62 percent of the voting capital was represented – an increase of 5 percentage points from the previous year’s meeting.

Bayer Stock Key Data		2nd Quarter 2007	2nd Quarter 2008	1st Half 2007	1st Half 2008
High for the period	€	56.68	57.00	56.68	65.68
Low for the period	€	47.58	50.61	40.20	45.90
Average daily share turnover on German stock exchanges	million	6.2	4.3	5.9	5.8
		June 30, 2007	June 30, 2008	Dec. 31, 2007	Change June 30, 2008/ Dec. 31, 2007 %
Share price	€	56.10	53.46	62.53	-14.5
Market capitalization	€ million	42,879	40,862	47,794	-14.5
Stockholders’ equity as per balance sheets	€ million	16,249	17,412	16,821	+3.5
Number of shares entitled to the dividend	million	764.34	764.34	764.34	0.0

DAX		8,007	6,418	8,067	-20.4

XETRA-closing price; source: Bloomberg

Performance over the Past Twelve Months

(indexed; 100 = Xetra closing price on June 30, 2007)

Calculation of core earnings per share

Earnings per share according to IFRS are affected by the purchase price allocation for Schering, Berlin, Germany, and other special factors. To enhance comparability, we also determine core net income from continuing operations after elimination of the amortization of intangible assets, asset write-downs (including any impairment losses), special items in EBITDA including the related tax effects, and one-time tax income or expense.

The calculation of earnings per share in accordance with IFRS is explained in the notes to the consolidated financial statements. Adjusted core net income, core earnings per share and core EBIT are not defined in the International Financial Reporting Standards. Therefore they should be regarded as supplementary information rather than stand-alone indicators.

Calculation of Core EBIT and Core Earnings per Share	2nd Quarter 2007	2nd Quarter 2008	1st Half 2007	1st Half 2008
€ million
EBIT as per income statement	917	1,105	2,092	2,448
Amortization and write-downs of intangible assets	325	378	618	785
Write-downs of property, plant and equipment	53	29	77	60
Special items (other than write-downs)	234	122	450	252
Core EBIT	1,529	1,634	3,237	3,545
Non-operating result (as per income statement)	(257)	(62)	(75)	(37)
Income taxes (as per income statement)	(247)	(262)	(548)	(568)
Tax adjustment	(205)	(161)	(382)	(333)
Income after taxes attributable to minority interest (as per income statement)	3	(7)	2	(7)
Core net income from continuing operations	823	943	1,834	2,100
Financing expenses for the mandatory convertible bond, net of tax effects	24	28	48	56
Adjusted core net income	847	971	1,882	2,156

Shares
Weighted average number of issued ordinary shares	764,341,920	764,341,920	764,341,920	764,341,920
Potential shares to be issued upon conversion of the mandatory convertible bond	59,565,835	59,904,897	59,544,939	59,743,798
Adjusted weighted average total number of issued and potential ordinary shares	823,907,755	824,246,817	823,886,859	824,085,718
Core earnings per share from continuing operations (€)	1.03	1.18	2.28	2.62