Science For A Better Life Tackling Climate Change: Taking action now for tomorrow’s generations Dr. Udo Klein Bayer Australia Ltd.

Business Areas Today, 108,400 employees (over 850 in ANZ) 2009 Sales: EUR 31.2 bn (A$724 million in ANZ) Global R&D expenditures: EUR 2.7 bn (9% of sales) Founded by Friedrich Bayer in 1863

Sustainability To meet the needs of the present without compromising the ability of future generations to meet their own needs. Brundtland Commission, st - Charlotte Sullivan

Sustainability means more than Climate Protection Protection of the Global Environment Economical Stability Social Responsibility & Stability Work & Education Peace, Health Care, Food & Water Supply Sustainability of Resources

Ambitious Targets Bayer MaterialScience Reduction of specific greenhouse gas emissions by 25% Bayer CropScience: Reduction of absolute greenhouse gas emissions by 15% Bayer HealthCare: Reduction of absolute greenhouse gas emissions by 5% Investments into Greenhouse gas emission reduction: €1 billion up to 2010

6 Global “Business Travel“ Initiatives The “Business Travel” Initiative encourages a climate- conscious approach to business flights Up-to-date conferencing technology enables communication in a more climate-friendly way Priority must be given to climate-friendly modes of transport wherever possible Goal of the “EcoFleet” Initiative: Cut worldwide CO 2 emissions of the fleet by 20 % by 2012

7 Goal of the “EcoFleet” Initiative: Cut worldwide CO 2 emissions of the fleet by 20 percent by 2012 Locally in Australia and New Zealand a new car policy was launched on 1 May 2009 (Emissions Target < 200g CO 2 / km) Global “EcoFleet“ Initiative Toyota Prius 4.4 l / 100 Km (106 g/km CO2) VW Passat 6.7 l / 100 Km (175 g/km CO2)

EcoCommercial Building Zero-emissions and low energy office and industry buildings Concept adaptable to different climate zones Integration of state-of-the art technologies Insulation materials play a key role Roll out in India, Thailand, Belgium and Germany

Jatropha: Renewable raw materials as energy suppliers Climate change and growing world population are challenging agriculture globally Conflict situation: Using plants and land for food or for energy production ? Jatropha: A chance for sustainable biofuels supply

10 Stress-tolerant Plants The growing world population demands increased and more reliable crop yields Climate change increases the stress on plants and the threat of crop failures Stress-tolerant, high-yield seeds can safeguard crops even under extreme weather conditions

Baytubes - Carbon Nanotubes Generally used as an additive to improve specific properties (eg increasing strength, reducing weight) Used in plastics such as in wind turbines or motor vehicles Larger rotors convert more energy into electricity Light weight vehicles consume less fuel Added to ship coatings makes vessels faster and reduces fuel consumption

ANZ – local activities 2008 Employee survey on environmental sustainability 2009 B-Green initiative, Environmental Sustainability Framework - GHG, waste, water, community 2010 Energy, waste and water audits 2010 Investigating the use of wind energy for Office Buildings De-lamping and movement sensors introduced Improved / increased Recycling Timers installed 100% use of recycled paper Reducing paper usage eg online billing and publications; double sided printing Employee engagement and education program 2009 Sustainability Awards and tree planting Reduction in Air Travel and change of fleet policy

13 Remarkable Progress by Bayer Worldwide CO 2 emissions of the Bayer Group were reduced by 37%

CSR Global Investment of EUR 48 Mio (EUR 42 Mio. 2009) In Australia/New Zealand Health & Social Mission Australia MS Society Spina Bifida Foundation Auckland Society for the Protection of Animals Science & Education Australian Science Festival Periodic Tables Sponsoring German International Schools Innovators awards (NZ) Bayer Boost Scholarship (NZ) Environment & Nature Eco-Minds B-Green program Whangerei bird Sanctuary (NZ) Sports & Culture KPO Schools Concerto Competition Auckland University Drama Society $500,000 Since 2005, Bayer ANZ has contributed more than $500,000 to charities and communities in Australia and New Zealand.

Summary Commitment to Broader Understanding of Sustainability Defined Targets Innovative Solutions Cost Savings and Business Opportunities Committed Employees Results Significant Investments into R&D, CO 2 Reduction and CSR

Science For A Better Life Thank you very much for your kind attention