Energy efficiency demonstration in manufacturing industry Bayer Technology Services GmbH (BAY) Manchester, 3 August 2012 Energy–

Company Profile for EFENIS Bayer Technology Services

Bayer Technology Services – a Bayer Subsidiary Page 3 Business areasService areas Holding company Corporate Center Bayer AG Group Management Board Currenta Bayer Business Services Bayer HealthCare Bayer MaterialScience Bayer CropScience Bayer Technology Services BTS Company Profile - EFENIS 03. Aug 2012

Bayer Technology Services – A Leading Technology Company Technology solutions, services, know-how – our core competencies for your success. Competent service partner for value-generating, holistic solutions along the entire life cycle of chemical/pharmaceutical products, processes and plants – we initiate, implement and support technological innovations over the long term from development through engineering and construction to process optimization. Complete technology packages go beyond our spectrum of services. Page 4 Technology Development Project Management & Engineering Operation Support & Safety BTS Company Profile - EFENIS 03. Aug 2012

Bayer Technology Services – Full Year 2011 Page 5 Employees2,700 * Full Year SalesEUR 460 million Global network20 offices in 10 countries HeadquarterLeverkusen, Germany * as permanent or fixed-term contracts, in FTE BTS Company Profile - EFENIS 03. Aug 2012

Bayer Technology Services – Organization Page 6 Bayer Technology Services Technology Development (TD) Project Mgt. & Engineering (PME) Customer & Product Mgt. (CPM) BTS Americas (BTSA) Operation Support & Safety (OSS) BTS Asia (Asia) Business Planning & Support (BPS) Human Resources (HR) Enabling Technologies Process Design & Opt. Upstream Processes Downstream Processes Operations Technology & Innovation Mktg of Services & Portfoliomgt. Invite Ehrfeld Mikrotechnik BTS GmbH Key Experts BTS Benelux ……………… Division Technology Development  Staff 330 (ca. 220 scientific)  7 units  2 subsidiaries  1 country organization Unit Process Design & Optimization  Staff:  35 scientific staff  mostly ChemEng  4 groups (Customer oriented) BTS Company Profile - EFENIS 03. Aug 2012

Technology Development – Portfolio Page 7 Conceptual and technological product design and development from a strongly interdisciplinary perspective. Product-by-Technology Screening concepts and systems in Life Science R&D and process control. Automated, miniaturized assay, fluorescence imaging. Integrated protein analytics. Customized Analytical Solutions Support of R&D processes in life science companies by modeling & simulation. Computational Biology Optimization & development of production processes and future innovative manufacturing concepts. Chemical & Polymer Processes Development, scale-up, transfer, optimization and implementation of Biotechnological Processes. Biotechnological Processes Centre of expertise for technology evaluation, strategic consulting and acquisition of public research subsidies. Technology Consulting & Public Funding BTS Company Profile - EFENIS 03. Aug 2012

Process Design & Optimization for chemicals, polymers and active ingredient production BTS Company Profile - EFENIS 03. Aug 2012Page 8 We develop new process technology & entire processes for Bayer Subgroups and selected external partners by… integrating broad BTS expertise e.g. by our structured conceptual design brainstorming approach fast and realistic evaluation of process variants (CDKOS) management of cross-functional process initiatives. We utilize and maintain a unique network with process & unit operations experts across TD ensuring a holistic process engineering approach We optimize existing plants and processes in close cooperation with Bayer Subgroups and selected external partners comprising… Increase / adapt product quality Increase plant availability & capacity (de-bottle-necking) Energy Efficiency Management Systems We are the center of expertise for advanced & in-depth process modeling at Bayer and ensure transfer latest modeling developments Process Design & Optimization Process Analysis Chemicals & Polymers Conceptual Design Chemicals & Polymers Crop Protection & Specialties Healthcare & Biotechnology

Sustainable energy efficiency is a key topic for BTS: Bayer Climate Check & STRUCTese BTS Company Profile - EFENIS 03. Aug 2012 ●Bayer Climate Check involves two elements: ●Climate Footprint ® (carbon footprint) to assess the climate impact of products ●Energy Efficiency Check to identify measures for energy & greenhouse gas emission reduction ●Results based on finalized 160 plants & buildings: energy savings potential 5…30 % ●Several Bayer-external customers ●The Energy Efficiency Management program STRUCTese ® enables continuous and sustainable improvement throughout the organization ●Central element is the novel energy loss cascade to measure & visualize energy efficiency Results: ●Implementation finalized at > 45 plants at BMS ●Significant reductions realized ●Key contribution to Bayer’s specific CO 2 emissions reduction target by 35% (2005  2020)

Bayer Technology Services‘ Interest in EFENIS Status Quo within Bayer  Global energy efficiency improvement programs completed (2007…2012)  Industry leading energy efficiency management system (STRUCTese ® ) developed and implemented globally for Bayer MaterialScience  So far with main focus on efficiency improvements at plant/train level Next steps (supported by EFENIS)  Test advanced total site methodology for a real integrated production site  Evaluate „future“ State-of-the-Art total-site optimization methodology  Conceptual guidelines for site utility systems design and operation  master planning of new integrated production sites.  Technology extension for heat recovery for total site integration  Site energy optimization with uncertainty data Page 10 BTS Company Profile - EFENIS 03. Aug 2012

Bayer Technology Services‘ Role in EFENIS BTS will contribute by…  Demonstration & Evaluation of the advanced total site analysis methodology for a pilot site  Development of an IP protection, results exploitation & dissemination concept  Providing feedback on the methodology development from a chemical industry perspective Page 11 BTS Company Profile - EFENIS 03. Aug 2012

WP10 Project Management WP9 Technology transfer WP1 Total site integration and optimisation WP5: Chemicals Decision-supporting Methodology Enabling Technologies Demonstration WP6: Oil Refinery WP7: Coal-to- Chemicals WP8: CHP and Distr. Heating WP2 Total Site carbon management WP3 Total Site waste heat recovery with intensified heat transfer WP4 Integration with CHP and distr.heating Work Packages with BAY coordination/participation BTS Company Profile - EFENIS 03. Aug 2012Page 12

WP Num WP Title Type of activity Objectives Start month End month WP 5 Demonstration - Putting into practice total site energy management for the chemical industry (BAYER) DEMO Task 5.1: Analysis of the as-is state of the site (BAY, support by UNIMAN, UPB and UNIPAN) Year 1 Task 5.2: Perform “fundamentally-improved” Total Site Analysis (BAY supported by UNIMAN, UPB and UNIPAN) Task 5.3: Detailed planning and implementation of identified improvement measures (BAY, UNIMAN, UNIPAN, UPB) Task 5.4.: Check transferability to other sites (BAY, UNIMAN, UNIPAN, UPB) 136 WP9 Technology Transfer (BAYER) OTHERTask 9.1 – Protection of project results Task 9.2 – Development of exploitation strategy Task 9.3 – Knowledge Dissemination Task 9.4 – Training Activities Task 9.5. Energy Service Centre activities 636 Work Packages with BAY coordination/participation BTS Company Profile - EFENIS 03. Aug 2012Page 13

Thank you! Page 14 BTS Company Profile - EFENIS 03. Aug 2012

Global Network & Local Offices Page 15 Leverkusen (global headquarters) Bergkamen, Berlin, Dormagen, Krefeld, Wuppertal, Wendelsheim Mexico-City Berkeley Baytown Pittsburgh New Martinsville Belford Roxo Antwerp Dubai Mumbai Singapore Shanghai Beijing Moscow BTS Company Profile - EFENIS 03. Aug 2012