Performance by Subgroup and Segment

Corporate structure

Bayer AG, headquartered in Leverkusen, Germany, is the strategic management holding company for the Bayer Group. Business activities are conducted by the HealthCare, CropScience and MaterialScience subgroups, supported by the service companies Bayer Business Services, Bayer Technology Services and Currenta.

We have implemented a number of organizational changes that affect our segment reporting effective January 1, 2009 as described below. The prior-year figures have been restated accordingly.

We are now reporting MaterialScience as a single segment. The integration of the thermoplastic polyurethanes businesses into the Polyurethanes and the Coatings, Adhesives, Specialties business units completes an important phase in the reorganization of the MaterialScience portfolio. The Thermoplastic Polyurethanes (TPU) business unit has been dissolved. The TPU granules business has been integrated into the Polyurethanes business unit, while the TPU films activities now form part of the Coatings, Adhesives, Specialties business unit (Functional Films). In addition, due to organizational changes, we are now reporting the non-core businesses previously reported as “Other Systems” under Industrial Operations.

We have also made organizational changes in the HealthCare subgroup. Our dermatology business (Intendis) is no longer part of the Pharmaceuticals segment, but has been integrated into the Consumer Care Division within the Consumer Health segment. The Diabetes Care Division has been combined with our medical equipment business Medrad – which previously formed part of the Diagnostic Imaging business unit in the Pharmaceuticals segment – to create the Medical Care Division. In the Pharmaceuticals segment we now conduct our business in the General Medicine (formerly Primary Care and Cardiology), Specialty Medicine (formerly Specialized Therapeutics, Oncology and Hematology), Women’s Healthcare and Diagnostic Imaging business units.

The commentaries in this report relate exclusively to continuing operations, except where specific reference is made to discontinued operations or to a total value.

Key Data by Subgroup and Segment
	Sales		EBIT before special items*		EBITDA before special items*		EBITDA margin before special items*
	1st Quarter 2008	1st Quarter 2009	1st Quarter 2008	1st Quarter 2009	1st Quarter 2008	1st Quarter 2009	1st Quarter 2008	1st Quarter 2009
	€ million	€ million	€ million	€ million	€ million	€ million	%	%
HealthCare	3,731	3,843	663	693	1,050	1,061	28.1	27.6
Pharmaceuticals	2,469	2,587	429	523	760	827	30.8	32.0
Consumer Health	1,262	1,256	234	170	290	234	23.0	18.6
CropScience	1,978	2,120	578	617	713	737	36.0	34.8
Crop Protection	1,622	1,734	493	506	607	611	37.4	35.2
Environmental Science, BioScience	356	386	85	111	106	126	29.8	32.6
MaterialScience	2,512	1,636	281	(263)	407	(116)	16,2	(7.1)
Reconciliation	315	296	(25)	(30)	15	13	4.8	4.4
Continuing operations	8,536	7,895	1,497	1,017	2,185	1,695	25.6	21.5
2008 figures restated * for definition see chapter “Calculation of EBIT(DA) Before Special Items,”