Sales and Earnings Forecast

The following forecast for 2015 is based on the business development described in this report, taking into account the potential risks and opportunities.

The Diabetes Care business is no longer included in continuing operations and therefore is also not included in the updated forecast. However, Covestro continues to be included in the Consolidated Financial Statements of Bayer as a fully consolidated subsidiary after its stock market flotation on October 6, 2015, as Bayer AG currently still holds a 69% interest in that company and exercises control over it.

Bayer Group

We have adjusted the exchange rates on which our forecast is based to reflect current developments and are now using the exchange rates prevailing on September 30, 2015 with respect to the fourth quarter of 2015.

We are now planning sales in the region of €46 billion (previously: in the region of €47 billion). This still corresponds to a low-single-digit percentage increase on a currency- and portfolio-adjusted basis. We anticipate currency effects to boost sales by approximately 6% (previously: approximately 7%) compared with the prior year. Our expectation regarding the company’s earnings development is largely unchanged. It remains our aim to raise EBITDA before special items by a high-teens percentage, now allowing for expected positive currency effects of about 4% (previously: about 5%). We continue to target a high-teens percentage increase in core earnings per share (calculated as explained in “Core Earnings Per Share”), allowing for expected positive currency effects of around 4% (previously: around 5%).

As before, we expect to take special charges in the region of approximately €900 million, with the integration of the acquired consumer care businesses, the carve-out and stock market flotation of Covestro, and the optimization of production structures accounting for most of this amount.

We now anticipate the financial result to come in at around minus €1.1 billion (previously: minus €1 billion) and the effective tax rate at below 25% (previously: around 25%) in 2015. Including the cash inflows from the stock market flotation of Covestro, we expect net financial debt at year end to be below €18 billion (previously: below €20 billion).

Further details of the business forecast are given in Chapter 20.2 of the Annual Report 2014.

HealthCare

As before, we expect sales from continuing operations at HealthCare to rise to approximately €23 billion. This now corresponds to a mid- to high-single-digit percentage increase on a currency- and portfolio-adjusted basis (previously: a mid-single-digit percentage). We predict positive currency effects of approximately 5% (previously: about 6%) compared with 2014. It remains our aim to raise EBITDA before special items by a low-twenties percentage.

We continue to expect sales in the Pharmaceuticals segment to move ahead to approximately €14 billion. This now corresponds to a high-single-digit percentage increase on a currency- and portfolio-adjusted basis (previously: a mid- to high-single-digit percentage). We anticipate positive currency effects of approximately 5% (previously: about 6%) compared with 2014. We intend to raise sales of our recently launched products to over €4 billion. We plan to raise EBITDA before special items by a mid-teens percentage.

In the Consumer Health segment, we now expect sales of approximately €9 billion (previously: over €9 billion), including those of the acquired consumer care businesses. We still plan to grow sales by a mid-single-digit percentage on a currency- and portfolio-adjusted basis. We anticipate positive currency effects of approximately 5% (previously: about 7%) compared with 2014. As before, we expect to raise EBITDA before special items by a mid-thirties percentage, with the acquired consumer care businesses contributing to the increase.

CropScience

At CropScience, we are adjusting the outlook to reflect the weaker development of the market environment and lower-than-expected currency effects. We continue to expect above-market growth and now aim to raise sales to slightly above €10 billion (previously: around €10.5 billion). This still corresponds to a low-single-digit percentage increase on a currency- and portfolio-adjusted basis. We anticipate positive currency effects of about 7% (previously: about 8%) compared with 2014. In view of the weakened market environment, we now plan to improve EBITDA before special items by a mid-single-digit percentage (previously: a mid- to high-single-digit percentage).

Covestro

Covestro continues to plan further volume growth in 2015 accompanied by declining selling prices. This will lead to lower sales on a currency- and portfolio-adjusted basis. However, the company still expects a significant increase in EBITDA before special items for the full year. Covestro aims to return to earning the cost of capital in 2015.

Reconciliation

For 2015 we continue to expect sales on a currency- and portfolio-adjusted basis to be level with the previous year. We now expect EBITDA before special items to be in the region of minus €0.2 billion (previously: minus €0.3 billion).