SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of July, 2002
___________________
Bayer Aktiengesellschaft
(Exact name of registrant as specified in its charter)
Bayerwerk, Gebaude W1
D-51368 Leverkusen
Germany
(Address of principal executive offices)
___________________
Indicate by check mark whether the registrant files
or will file annual reports under cover Form
20-F or Form 40-F.
Form 20-F X Form 40-F
---
Indicate by check mark whether the registrant by
furnishing information contained in this Form is also
thereby furnishing information to the
Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- N/A
EXHIBIT INDEX
1. One press release dated May 2, 2002.
2. One press release dated May 31, 2002.
3. One press release dated June 3, 2002
4. One press release dated June 12, 2002.
5. One press release dated July 17, 2002.
6. One undated invitation to the Bayer AG 2002 Investor Conference in London
on August 1, 2002.
7. One press release dated July 24, 2002.
8. One press release dated July 24, 2002.
9. One undated press release containing the 1H 2002 Publication Schedule.
10. One press release dated August 1, 2002.
11. One English-language version of Bayer AG's Interim Report for the first
half of 2002 as distributed at Bayer AG's Investor Conference in London on
August 1, 2002.
EXHIBIT 1
[Bayer Logo]
Corporate Investor Relations
Treatment of community-acquired pneumonia
Avalox(R)i.v. approved in Germany: noticeable drop in treatment costs possible
Shorter hospitalization period thanks to effective treatment
Leverkusen, May 2, 2002 - The intravenous (i.v.) presentation of Bayer's
antibiotic Avalox (R) (moxifloxacin) has now been registered in Germany. This
means that a new, highly effective therapeutic option, capable of shortening the
period of hospitalization and thus also noticeably reducing the cost of
treatment, is now available for the treatment of community-acquired pneumonia.
Pneumonia is the most common cause of morbidity and mortality in infectious
diseases. In Germany, 350,000 to 500,000 individuals develop pneumonia each
year, and 175,000 patients (about 35 percent of all cases) require hospital
treatment as a consequence.
A cost/benefit analysis presented at the 12 th European Congress of Clinical
Microbiology and Infectious Diseases in Milan, Italy, showed that first-line use
of Avalox (R) i.v. can also markedly reduce the cost of treatment. For example,
according to the model calculation, in Germany EUR 266 and in France EUR 381
could be saved per patient thanks to the shorter duration of hospitalization.
"Use of Avalox (R) i.v. effectively lowered the overall cost of treatment," said
Jeremy Chancellor, Head of the independent evaluating institute "Innovus
Research", United Kingdom.
"The cost/benefit analysis presented in Milan once again confirms that
innovative research is beneficial from an overall economic perspective as well.
We are convinced that Avalox (R) i.v. will be as well accepted by doctors as the
tablet presentation, which has now been used to treat more than 12 million
patients around the world," said Dr. Wolfgang Plischke, General Manager of Bayer
AG's Pharmaceuticals Business Group.
Avalox (R) (Avelox (R) outside Germany) has been on the market since 1999 and
has now been launched in more than 70 countries. Avelox (R) i.v. was registered
in the United States in late 2001. The intravenous presentation is expected to
achieve sales of EUR 250 million by 2008.
Leverkusen, May 2002
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in our public reports filed with the Frankfurt Stock
Exchange and with the U.S. Securities and Exchange Commission (including our
Form 20-F). The company
assumes no liability whatsoever to update these forward-looking statements or to
conform them to future events or developments.
EXHIBIT 2
[Bayer Logo]
Corporate Investor Relations
Following E.U. Commission's approval:
FTC gives the green light for Bayer to acquire Aventis CropScience
Leverkusen - The U.S. antitrust authority, the Federal Trade Commission (FTC),
approved Bayer AG's acquisition of Aventis CropScience (ACS) subject to certain
conditions. Clearance had already been given by the European Commission on April
17, 2002.
"We're glad that closing - the actual transfer of the business - can now take
place very soon," said Dr. Jochen Wulff, designated Management Board Chairman of
Bayer CropScience. "The important thing now is to quickly and efficiently
integrate the ACS operations with Bayer's crop protection business and to foster
employee and customer awareness of our new corporate identity as Bayer
CropScience."
The FTC's approval is conditional upon the divestment or outlicensing of a
number of products marketed in the United States.
The conditions regarding the insecticide fipronil are largely the same as those
imposed by the E.U. Commission. The global business in fipronil for agricultural
uses must be divested. Bayer may market the product for non-agricultural uses
through a co-exclusive license, except in Europe. Like the European Commission,
the FTC also requires that Bayer divest the insecticide acetamiprid in Europe
and North America.
In addition, the wheat herbicide Everest must be divested, and Bayer's cotton
defoliant Folex(R), previously sold through ACS, must now be marketed by a third
party.
The conditions imposed by the European Commission and the FTC relate to a total
sales volume of 650 to 700 million euros. Says Dr. Wulff: "These negotiated
divestments will of course have an impact on our baseline, but it will be
limited and will not interfere with our strategic goals for Bayer CropScience."
Leverkusen, May 31, 2002
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in our public reports filed with the Frankfurt Stock
Exchange and with the U.S. Securities and Exchange Commission (including our
Form 20-F).The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or developments.
EXHIBIT 3
[Bayer Logo]
Corporate Investor Relations
Closing of Aventis CropScience acquisition
Bayer CropScience ready for launch
Among the top companies in the world market / Forecasted growth above the
industry average
Leverkusen, June 3, 2002 - The new Bayer CropScience subgroup, formed through
the merger of Bayer's Crop Protection Business Group with Aventis CropScience
SA, will begin operating on June 4, 2002. The industry's new number two company
is thus being given the green light following a thorough examination by the
antitrust authorities. The European Commission approved the acquisition in
April, and the United States Federal Trade Commission (FTC) gave the go-ahead on
May 30. Closing of the EUR 7.25 billion deal on June 3 marks the biggest
acquisition in Bayer's history.
"We are pleased to have accomplished this major acquisition in just half a year.
Bayer CropScience will be one of the pillars of the reorganized Bayer Group,"
commented Bayer Management Board Chairman Werner Wenning. "We will be able to
capitalize on our strengths as a leading company in crop protection, the seed
business and biotechnology, as well as in non-agricultural pest control. We are
counting on the considerable innovative power of the new company, which we
intend to safeguard through suitably high research and development budgets."
Despite the conditions imposed by the antitrust authorities, which will mean
divesting or outlicensing a sales volume of between EUR 650 million and EUR 700
million, Bayer CropScience is one of the industry's top companies, with
approximately 22,000 employees and sales of roughly EUR 6.5 billion.
Bayer CropScience is divided into five functions, and its operations are steered
via five market regions - Europe, NAFTA, Cono Sur, Northeast Asia and
International. The classic crop protection business is complemented by two
autonomous business groups: Environmental Science (which includes professional
pest control) and BioScience, both headquartered in Lyon, France and the site in
Frankfurt, Germany to the United States, Japan and Brazil. At these meetings,
the management team consisting of Management Board Chairman Dr. Jochen Wulff and
Board members Dr. Bernward Garthoff (Technology), Dr. Esmail Zirakparvar
(Business Operations) and Willy Scherf (Administration) will also answer
questions concerning the ongoing integration process that will continue to be a
focus of the new company. Also a high priority are efficient communication with,
and continuing support for, the new company's customers, for in the future Bayer
CropScience will offer a considerably broader product range and enhanced problem
solutions thanks to its increased wealth of expertise.
Leverkusen, June 3, 2002
A conference call on the closing of the ACS
acquisition is scheduled for Wednesday, June 5, 2002.
Details will be announced shortly.
Further information on Bayer CropScience is available at
www.bayercropscience.com
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in our public reports filed with the Frankfurt Stock
Exchange and with the U.S. Securities and Exchange Commission (including our
Form 20-F). The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or developments.
EXHIBIT 4
[Bayer Logo]
Corporate Investor Relations
Bayer is present at Goldman Sachs Global Healthcare Conference and Sal.
Oppenheim Symposium
Ladies and gentlemen,
Bayer is presenting on the Goldman Sachs Global Healthcare Conference 2002 in
Laguna Nigel, California (June 10 - 14, 2002) and todays Sal. Oppenheim
Symposium 2002 in Frankfurt.
The presentations are available for download from the company's website
www.investor.bayer.com
Sincerely,
Bayer AG
Investor Relations Team
Leverkusen, June 12, 2002
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in our public reports filed with the Frankfurt Stock
Exchange and with the U.S. Securities and Exchange Commission (including our
Form 20-F).The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or developments.
EXHIBIT 5
[Bayer Logo]
Corporate Investor Relations
Bidding process concluded:
Bayer plans to sell Haarmann & Reimer to EQT
Intended merger of H&R with competitor Dragoco
Leverkusen, - Bayer plans to sell its subsidiary Haarmann & Reimer (H&R) for
(euro)1.66 billion to the EQT Northern Europe Private Equity Funds, which are
sponsored by Investor AB of Sweden. The Holzminden, Germany-based fragrances and
flavors manufacturer would be bought by an acquirer company into which H&R's
current competitor Dragoco, also of Holzminden, would be integrated. The merger
would give rise to a leading fragrances and flavors company with a global
presence and the ability to offer an outstanding product range. This new company
would have 5,800 employees and pro forma sales of (euro)1,245 million based on
2001 figures. Closing of the acquisition is expected to take place in the fourth
quarter of 2002 subject to the approval of the antitrust authorities.
Explained Werner Wenning, Chairman of the Bayer AG Management Board: "We welcome
this outcome. It marks a further step in the streamlining of our Group
portfolio." He said the proceeds - like those of the recent sales of company
housing units, the interest in Agfa and the generics business in France and
Spain - would be used to reduce debt. Wenning remains confident that the other
divestments announced can also be accomplished on schedule. He believes that
"The new company has every chance of a highly prosperous future in this
fast-growing but consolidating industry."
Bayer carried out the sale of Haarmann & Reimer as an open bidding process.
Several of the numerous potential investors were invited to examine the company
in detail and make a binding offer. Both strategic and financial investors
remained in the running right up to the end. EQT (www.eqt.se) is a group of
private equity funds with equity commitments exceeding (euro)3 billion. The EQT
funds are sponsored by Investor AB, the publicly listed industrial holding
company of the Wallenberg foundations, Sweden.
Leverkusen, July 17, 2002
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in our public reports filed with the Frankfurt Stock
Exchange and with the U.S. Securities and Exchange Commission (including our
Form 20-F).The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or developments.
EXHIBIT 6
[Bayer Logo]
Investor Relations
BAYER AG 2002 INVESTOR CONFERENCE IN LONDON
Ladies and Gentlemen,
We would be delighted if you could join us for our London Investor Conference.
Our presentation and a dinner will take place on:
Date: Thursday, August 1st , 2002
Time: 5:00 p.m. cocktail reception
5:30 p.m. presentation, followed by dinner
Place: One Whitehall Place, Westminster, London SW1A 2HD
Visiting London will be Werner Wenning, CEO and Chairman, Klaus Kuhn, CFO and
Board Member, and Dr. Alexander Rosar, Head of Investor Relations.
Please send a response by July 26 to Eddie Arcari at Morrow & Co., 1 Queen
Anne's Gate, London SW1H 9BT, E-mail: earcari@morrowco.com, Fax Number: (020)
7222 4651, Phone: (020) 7222 4645.
We would be most grateful if you would advise us if you have any special dietary
requirements for dinner.
We very much hope that you will be able to join us.
Sincerely,
Bayer Investor Relations Team
EXHIBIT 7
[Bayer Logo]
Corporate Investor Relations
Bayer and Glaxosmithkline receive U.S. FDA Approvable Letter for Vardenafil
Leverkusen, Germany and London, UK, July 24, 2002: Bayer AG [DAX and NYSE: BAY]
and GlaxoSmithKline plc [LSE and NYSE: GSK], announced today that they have
received an approvable letter from the U.S. Food and Drug Administration (FDA)
for vardenafil, an oral investigational drug under review for the treatment of
erectile dysfunction (ED). The drug has been approved by regulatory authorities
in several Latin American countries and has been submitted for approval to
regulatory agencies in all major markets.
The companies said that the FDA has asked for additional clinical pharmacology
studies before granting final approval for vardenafil. A U.S. launch for the
product is now projected for 2003.
Wolfgang Plischke, Ph.D., president, Pharmaceutical Division of Bayer
HealthCare, Bayer AG, said, "Bayer and GSK are committed to bringing vardenafil
to market as quickly as possible, and believe that the compound can provide a
new alternative for millions of men."
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in our public reports filed with the Frankfurt Stock
Exchange and with the U.S. Securities and Exchange Commission (including our
Form 20-F).The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or developments.
EXHIBIT 8
[Bayer Logo]
Corporate Investor Relations
Further consolidation of the diagnostics business:
Bayer agrees to acquire Visible Genetics Inc. for US$ 61.4 million
HIV test portfolio crucially expanded
Leverkusen/Tarrytown - As a further consolidation of its diagnostics business,
Bayer Corporation, the U.S. subsidiary of the Bayer Group, has agreed to acquire
Visible Genetics Inc. (VGI), a Canadian company listed on the U.S. NASDAQ stock
exchange. The purchase price is valued at US$ 61.4 million; Bayer will purchase
VGI's outstanding common shares at a cost of $1.50 per share and Series A
preferred stock at par plus accrued dividends. The transaction is subject to
approval from the regulatory authorities and the VGI shareholders, who will be
asked to approve the plan at a stockholders' meeting scheduled for October 2002.
"This acquisition is another milestone in our ongoing strategy to expand our
Infectious Disease portfolio which began with our acquisition of Chiron
Diagnostics in 1998," said Rolf Classon, Head of the Diagnostics Division of the
future Healthcare subgroup of Bayer AG.
With a market share of around 10 percent in the medical diagnostics sector and
annual sales of EUR 2.0 billion, Bayer Diagnostics is among the world's four
largest providers in this field. The acquisition of VGI is intended to further
expand the company's position in the field of nucleic acid diagnostics.
VGI's assay portfolio complements Bayer's existing range of nucleic acid tests
for HIV and hepatitis. VGI plays a leading role in resistance determination by
means of sequencing analysis with its TRUGENETM tests, which include the
TRUGENETM HIV-1 test, the only HIV sequencing Genotyping Test to have been
granted market approval by the US Food and Drug Administration.
The treatment of viral diseases is frequently complicated by the development of
resistant viruses. Resistance testing is therefore carried out as a measure to
monitor therapeutic success, an approach that is also recommended in medical
guidelines.
With approximately 7,000 employees worldwide, Bayer Diagnostics, based in
Tarrytown, New York, USA, supports customers in 100 countries through an
extensive portfolio of central laboratory, self-testing, nucleic acid and
near-patient care diagnostics systems and services for use in the assessment and
management of health, including the areas of cardiovascular and kidney disease,
oncology, virology, women's health and diabetes. Bayer Diagnostics is a part of
the worldwide Bayer Group, an international health care and chemicals group
based in Leverkusen, Germany.
Visible Genetics Inc., Toronto, Canada, develops, manufactures and markets
automated DNA sequencing systems. The company has 350 employees worldwide; sales
in 2001 amounted to US$ 14 million.
Leverkusen, July 24, 2002
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in our public reports filed with the Frankfurt Stock
Exchange and with the U.S. Securities and Exchange Commission (including our
Form 20-F). The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or developments.
EXHIBIT 9
[Bayer Logo]
Investor Relations
1H 2002 Publication Schedule
Ladies and Gentlemen,
Our 1H2002 releases will be published tomorrow, August 1, at 8.00 a.m. CET.
The company will be available for comments during its investor conference,
starting at 5.00 p.m. (London time) at
One Whitehall Place, Westminster, London SW1A 2HD
The conference will be headed by Werner Wenning, CEO. He will be accompanied by
Klaus Kuhn, CFO, Wolfgang Plischke, Head of Pharmaceuticals, Bernward Garthoff,
member of the board of Bayer CropScience, and Alexander Rosar, Head of Investor
Relations.
Please contact Eddi Arcari at Morrow & Co., phone (020)-7222-4645, if you intend
to participate.
The entire conference will be broadcast via internet at www.investor.bayer.com.
Shareholder's letter and the conference presentation will be available at 8.00
a.m. (CET) from our investor relations website.
Best regards,
Bayer Investor Relations Team
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in our public reports filed with the Frankfurt Stock
Exchange and with the U.S. Securities and Exchange Commission (including our
Form 20-F). The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or developments.
EXHIBIT 10
[Bayer Logo]
Corporate Investor Relations
Werner Wenning on Bayer's first-half results:
"2002 is a year of transition in which we are creating the basis for future
growth"
Sales and operating result depressed by continuing economic weakness and
pharmaceutical product withdrawal / Divestment proceeds should mean higher net
income for the full year
Leverkusen - "2002 is a year of transition in which we are creating the basis
for future growth in the Bayer Group." That was the comment of Werner Wenning,
Chairman of the Management Board of Bayer AG, when the first-half figures were
released on Thursday, August 1. "Our priorities are the reorganization of the
Bayer Group, the rapid integration of Aventis CropScience and improving the
basis for our Health Care activities." According to Wenning, Bayer will press
systematically ahead with the implementation of the cost structure programs
announced last year which are intended to save a further (euro)0.5 billion this
year. "In the interests of our stockholders, customers and employees, we must
ensure that our company returns to a path of sustained growth next year,"
emphasized Bayer's CEO.
In the first half of 2002, the continuing difficult business environment and the
gap in sales resulting from the market withdrawal in August 2001 of Bayer's
cholesterol-lowering drug Lipobay/Baycol had a strong adverse effect on the
company's performance. Sales from continuing operations -without the activities
the company plans to sell - declined by 7 percent to (euro)14.3 billion. The
operating result before exceptional items dropped by 44 percent to (euro)0.8
billion, also due mainly to the Lipobay/Baycol withdrawal. After exceptional
items, which included (euro)0.5 billion in proceeds from the sale of company
housing units and (euro)0.3 billion in charges for restructuring and site
consolidation, the operating result dropped by 20 percent to (euro)1.0 billion.
Net income, including a tax-free gain on the sale of Bayer's remaining 30
percent interest in Agfa, was down 19 percent year-on-year to (euro)0.8 billion.
Wenning was pleased that net debt, which had increased as a result of the
Aventis CropScience acquisition, had already been reduced substantially to
(euro)12.1 billion. This was due primarily to three factors: improved working
capital management, which led to a 60 percent increase in net cash flow to
(euro)1.3 billion; a reduction in capital spending to (euro)1.0 billion; and the
(euro)0.7 billion proceeds of the sale of Bayer's remaining interest in Agfa.
With regard to the overall outlook for 2002, the Bayer CEO said: "We do not see
any indication of a tangible recovery this year." Despite the negative economic
forecast, he anticipates that net income will be up over the previous year in
light of the divestment proceeds already realized and those still expected.
Leverkusen, August 1, 2002
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties
and other factors could lead to material differences between the actual future
results, financial situation, development or performance of the company and the
estimates given here. These factors include those discussed in our public
reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and
Exchange Commission (including our Form 20-F).The company assumes no liability
whatsoever to update these forward-looking statements or to conform them to
future events or developments.
EXHIBIT 11
[Bayer Logo]
Investor Relations
1H 2002 Publication
Ladies and Gentlemen,
Please find attached our Interim Report for 1H 2002.
The company will be available for comments during today's investor conference,
starting at 5.00 p.m. (London time) at
One Whitehall Place, Westminster, London SW1A 2HD
The conference will be headed by Werner Wenning, CEO. He will be accom-panied by
Klaus Kuhn, CFO, Wolfgang Plischke, Head of Pharmaceuticals, Bernward Garthoff,
member of the board of Bayer CropScience, and Alexander Rosar, Head of Investor
Relations.
Please contact Eddi Arcari at Morrow & Co., phone (020)-7222-4645, if you intend
to participate.
The entire conference will be broadcast via internet at www.investor.bayer.com.
The conference presentation is already available for download from our investor
relations website.
Best regards,
Bayer Investor Relations Team
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in our public reports filed with the Frankfurt Stock
Exchange and with the U.S. Securities and Exchange Commission (including our
Form 20-F).The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or developments.
Stockholders'
Newsletter
2002
Interim Report for the First Half
--------------------------------------------------------------------------------
-- Performance by Business Area
--------------------------------------------------------------------------------
-- Performance by Region
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-- Liquidity and capital resources
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-- Earnings performance
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-- Asset and capital structure
--------------------------------------------------------------------------------
-- Capital expenditures
--------------------------------------------------------------------------------
-- Employees
--------------------------------------------------------------------------------
-- Outlook
--------------------------------------------------------------------------------
-- Bayer Group Highlights
--------------------------------------------------------------------------------
-- Bayer Group Consolidated Statements of Income (Summary)
--------------------------------------------------------------------------------
-- Bayer Group Consolidated Balance Sheets (Summary)
--------------------------------------------------------------------------------
-- Bayer Group Consolidated Statements of Changes in Stockholders' Equity
--------------------------------------------------------------------------------
-- Key Data by Segment
--------------------------------------------------------------------------------
-- Key Data by Region
--------------------------------------------------------------------------------
[Bayer logo]
Interim Report for the First Half
First-half net income 19 percent below
last year - Net operating cash flow greatly
improved
Business conditions remained difficult in the first half of 2002, with no
sustained recovery in customer demand so far. Sales from continuing operations,
at (euro)14.3 billion, were down 7 percent, of which 2 percentage points were
due to exchange rate fluctuations and 3 points to the withdrawal of
Lipobay(R)/Baycol(R).
The absence of this product was one of the main reasons for the 44
percent drop in the operating result before exceptional items to (euro)0.8
billion, another major factor being continuing pressure on polymers and
chemicals margins. The operating result after exceptional items fell by 20
percent to (euro)1.0 billion. The exceptional items comprised (euro)0.5 billion
in income from the sale of housing units and (euro)0.3 billion in charges for
restructuring and site consolidation.
Haarmann & Reimer will be reported as a discontinuing operation until
the date of its divestment. Including discontinuing operations, Group sales
declined by 8 percent to (euro)14.7 billion and the operating result fell 35
percent to (euro)1.1 billion, the previous year's figure having been boosted by
exceptional income from the sale of the interest in EC Erdolchemie. Group income
after taxes for the first half of 2002 amounted to (euro)0.8 billion, including
(euro)0.3 billion from the sale of the 30 percent interest in Agfa-Gevaert N.V.
[GRAPHIC]
Sales from continuing operations
(euro) million
2002 2001 2002 2001 2001 2001
Q1 Q1 Q2 Q2 Q3 Q4
-- -- -- -- -- --
Domestic 2,021 2,291 2,038 2,193 1,868 1,910
Foreign 4,989 5,212 5,233 5,597 4,846 5,253
Operating result from continuing operations before exceptional items
(euro)million
2002 2001 2002 2001 2001 2001
Q1 Q1 Q2 Q2 Q3 Q4
-- -- -- -- -- --
490 914 318 536 39 349
[/GRAPHIC]
Change in Sales 1st Half
------------------------------------------ -----------
Reported - 8 %
Continuing operations - 7 %
Volumes - 2 %
Prices - 4 %
Exchange rates - 2 %
Portfolio changes + 1 %
Earnings for the second quarter of 2002 were significantly affected by
the acquisition of Aventis CropScience as of June 1, which led to (euro)0.1
billion of purchase accounting amortization. The increased level of net debt
resulting from the acquisition was already reduced to (euro)12.1 billion by June
30 through tight controls on spending and 60 percent growth in net cash flow.
Performance by Business Area
In the first half of 2002 our four business areas recorded combined external
sales of (euro)13.9 billion, an operating result of (euro)0.9 billion before
exceptional items, and gross cash flow of (euro)1.5 billion. Polymers accounted
for the largest proportions of sales and gross cash flow (39 and 36 percent
respectively), while HealthCare contributed the largest share - 47 percent - to
the operating result.
[GRAPHIC]
Performance by business area (before reconciliation)
(euro) million
Health Care CropScience Polymers Chemicals
----------- ----------- -------- ---------
Sales 4,760 1,949 5,466 1,700
Operating result* 437 164 228 107
Gross cash flow 511 259 544 186
* Before exceptional items
[/GRAPHIC]
HealthCare
(euro) million 1st Half Full Year
2002 2001 2001
------------------------------------------------------------------
Sales 4,760 5,341 10,821
------------------------------------------------------------------
Operating result
before exceptional items 437 523 943
------------------------------------------------------------------
Return on sales
before exceptional items 9.2% 9.8% 8.7%
------------------------------------------------------------------
Gross cash flow 551 544 926
------------------------------------------------------------------
CropScience
(euro) million 1st Half Full Year
2002 2001 2001
--------------------------------------------------------------------
Sales 1,949 1,680 2,708
--------------------------------------------------------------------
Operating result before
exceptional items 164 375 453
--------------------------------------------------------------------
Return on sales before
exceptional items 8.4% 22.3% 16.7%
--------------------------------------------------------------------
Gross cash flow 259 351 550
--------------------------------------------------------------------
Sales in the Health Care business area decreased by 11 percent in the first half
to (euro)4.8 billion, largely because of the withdrawal of the
cholesterol-lowering drug Lipobay(R)/Baycol(R). The operating result before
exceptionals dropped by 16 percent to (euro)0.4 billion, and gross cash flow was
down 6 percent to (euro)0.5 billion. Profitability in this business area is
currently very unsatisfactory, and further cost savings have been initiated.
Talks are already being held with a view to a possible alliance.
Top-selling Pharmaceutical and
Biological Products in the First Half of 2002
(euro) million Change
Ciprobay(R)/Cipro(R) 775 + 5 %
-----------------------------------------------------------------------
Adalat(R) 444 - 13 %
-----------------------------------------------------------------------
Kogenate(R) 176 + 75 %
-----------------------------------------------------------------------
Gamimune(R)N 154 - 1 %
-----------------------------------------------------------------------
Glucobay(R) 145 - 6 %
-----------------------------------------------------------------------
Avalox(R)/Avelox(R) 112 + 6 %
-----------------------------------------------------------------------
Prolastin(R) 82 + 46 %
-----------------------------------------------------------------------
Nimotop(R) 65 + 7 %
-----------------------------------------------------------------------
Trasylol(R) 64 - 4 %
-----------------------------------------------------------------------
Human albumin/Plasmubin(R) 44 - 13 %
-----------------------------------------------------------------------
Pharmaceutical sales in the first half of 2002 declined by 24 percent
to (euro)1.9 billion, mainly due to the absence of Lipobay(R)/Baycol(R). The
anti-infectives Ciprobay(R)/Cipro(R) and Avalox(R)/Avelox(R) posted sales
increases. The antihypertensive Adalat(R) stood up well to
increasing competition from generics, with second-quarter sales reaching nearly
the previous year's level.
Following receipt of an "approvable" letter from the U.S. Food and Drug
Administration, we now expect the U.S. launch of our new erectile dysfunction
drug to be delayed until 2003.
The Biological Products Business Group performed well, with
substantially higher output of the factor VIII product Kogenate(R) boosting
sales by 21 percent to (euro)0.5 billion.
Consumer Care sales were down 10 percent to (euro)0.9 billion, due
especially to lower demand for our cold and pain remedies in the United States.
Business was also hurt by the economic crisis in Argentina, which is an
important market for this business group.
Diagnostics sales rose by 3 percent to (euro)1.0 billion, with the
ADVIA(R) Centaur laboratory analyzer and the Glucometer(R) Elite blood glucose
meter contributing particularly to growth.
Animal Health sales matched the previous year's level of (euro)0.4
billion.
Polymers
(euro) million 1st Half Full Year
2002 2001 2001
-------------------------------------------------------------------------------
Sales 5,466 5,792 11,020
-------------------------------------------------------------------------------
Operating result
before exceptional items 228 428 417
-------------------------------------------------------------------------------
Return on sales
before exceptional items 4.2% 7.4% 3.8%
-------------------------------------------------------------------------------
Gross cash flow 544 779 1,193
-------------------------------------------------------------------------------
Chemicals
(euro) million 1st Half Full Year
2002 2001 2001
-------------------------------------------------------------------------------
Sales 1,700 2,050 3,749
-------------------------------------------------------------------------------
Operating result
before exceptional items 107 255 271
-------------------------------------------------------------------------------
Return on sales
before exceptional items 6.3% 12.4% 7.2%
-------------------------------------------------------------------------------
Gross cash flow 186 237 379
-------------------------------------------------------------------------------
CropScience sales rose by 16 percent, or (euro)0.3 billion, to (euro)1.9
billion, due to the first-time inclusion of the business acquired from Aventis
CropScience (ACS). Good growth was achieved in Europe by our Stratego(R) and
Folicur(R) fungicides. Business in Latin America, however, was impaired by the
adverse economic situation in some of our major markets.
The operating result and gross cash flow were down by 56 and 26
percent, respectively, to (euro)0.2 billion and (euro)0.3 billion. Since the ACS
business was not actually acquired until June 1, 2002, the amounts provisionally
reflected in the consolidation as at June 30 are taken from the pro forma
financial statements of the Bayer CropScience subgroup and include the (euro)0.1
billion amortization of the difference between the purchase price and the net
equity acquired.
Sales in the Polymers business area in the first half of 2002 decreased by 6
percent to (euro)5.5 billion. Fierce competition for market share led to further
price erosion and substantially lower operating profit and cash flow, which were
down by 47 and 30 percent, respectively.
Sales of the Plastics Business Group declined by 12 percent to
(euro)1.6 billion, and those of the Rubber Business Group by 4 percent to
(euro)1.1 billion. Polyurethanes sales edged up 1 percent to (euro)1.6 billion,
while business in Coatings and Colorants slipped 5 percent to (euro)1.0 billion.
The Chemicals business area recorded a 17 percent, or (euro)350 million, decline
in sales to (euro)1.7 billion. Demand from major customer industries remained
unsatisfactory, with prices continuing to decline - a trend that particularly
affected H.C. Starck. As a consequence, the operating result fell by 58 percent
and gross cash flow receded by 22 percent.
Sales in the Basic and Fine Chemicals Business Group dropped by 12
percent due to the divestment of ChemDesign and the sharp drop in the price of
caustic soda solution. Business in Specialty Products was down 6 percent to
(euro)0.7 billion. Sales of Wolff Walsrode were 25 percent lower, at (euro)0.2
billion, because of this business group's strategic realignment and the
associated divestiture.
Cash Flow Statements (Summary)
(euro)million 1st Half
2002 2001
-------------------------------------------------------------------------------
Gross operating cash flow 1,591 1,836
-------------------------------------------------------------------------------
Changes in working capital (258) (1,005)
-------------------------------------------------------------------------------
Net cash provided by operating activities 1,333 831
-------------------------------------------------------------------------------
of which discontinuing operations 38 45
-------------------------------------------------------------------------------
Net cash used in investing activities (4,406) (666)
-------------------------------------------------------------------------------
of which discontinuing operations (34) (9)
-------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 3,204 (71)
-------------------------------------------------------------------------------
of which discontinuing operations 20 (6)
-------------------------------------------------------------------------------
Change in cash and cash equivalents 131 94
-------------------------------------------------------------------------------
Cash and cash equivalents at beginning of year 719 491
-------------------------------------------------------------------------------
Exchange rate movements and changes in scope of consolidation (10) 23
-------------------------------------------------------------------------------
Cash and cash equivalents at end of first half 840 608
-------------------------------------------------------------------------------
[GRAPHIC]
Performance by region (by point of origin, before reconciliation)
(euro) million
Latin
America/
North Africa/
Europe America Asia/Pacific Middle East
------ ------- ------------ -----------
Sales 6,720 4,588 1,950 1,023
Operating result * 622 97 152 55
Gross cash flow 1,013 415 158 66
* Before exceptional items
[/GRAPHIC]
Performance by Region
Sales of our companies in Europe receded by 6 percent, or (euro)0.4
billion, compared with the same period of 2001, to (euro)6.7 billion. The
Lipobay(R)/Baycol(R) withdrawal and the divestments made accounted for (euro)0.2
billion of the decline. The operating result dropped by 53 percent to (euro)0.6
billion, and gross cash flow was down 21 percent to (euro)1.0 billion. The
return on sales, however, at 9 percent, was well above the Group average.
In North America business was down by 8 percent, or (euro)0.4 billion,
to (euro)4.6 billion, with (euro)0.3 billion of the decrease accounted for by
the Lipobay(R)/Baycol(R) withdrawal and by divestments. Operating profit and
gross cash flow, however, each improved by (euro)0.1 billion.
Business of our companies in the Asia/Pacific region improved over last
year in local currencies despite the absence of Lipobay(R)/Baycol(R). They
recorded sales of (euro)2.0 billion, with the operating result and gross cash
flow each amounting to (euro)0.2 billion. Figures for China were particularly
encouraging.
In the Latin America/Africa/Middle East region, sales were down 10
percent to (euro)1.0 billion, with shifts in exchange rates having an 18 percent
negative effect. The economic crisis worsened in recent months, especially in
Argentina. Against this background, the operating result and gross cash flow
each dropped to (euro)0.1 billion.
Earnings
(euro)million 1st Half Full Year
2002 2001 2001
Operating result 1,088 1,671 1,611
----------------------------------------------------------------------
of which discontinuing operations 43 372 406
----------------------------------------------------------------------
Non-operating result (109) (230) (496)
----------------------------------------------------------------------
Income before income taxes 979 1,441 1,115
----------------------------------------------------------------------
Net income 816 1,006 965
----------------------------------------------------------------------
Liquidity and capital resources
The consolidated financial statements for the first half of 2002 have been
prepared as for the year 2001 according to the rules issued by the International
Accounting Standards Board, London. Reference should be made as appropriate to
the notes to the 2001 statements.
Gross cash flow declined by (euro)0.2 billion to (euro)1.6 billion.
However, the cash outflow resulting from changes in working capital was only
(euro)0.3 billion, compared with (euro)1.0 billion in the first half of 2001.
The net operating cash flow therefore rose by 60 percent to (euro)1.3 billion.
Net cash of (euro)4.4 billion was used in investing activities.
Expenditures for acquisitions came to (euro)5.4 billion, and net additions to
property, plant and equipment were (euro)0.2 billion. Cash inflow from
investments and dividends amounted to (euro)1.2 billion.
Financing activities provided net cash of (euro)3.2 billion. Net
borrowings were (euro)4.3 billion, consisting mainly of a ten-year and a
five-year bond issued by Bayer AG and carrying a 6 percent and a 5.375 percent
coupon, respectively. Of the (euro)5.0 billion total issue volume, 38 percent
has been swapped from fixed into floating interest. Cash disbursements totaling
(euro)1.1 billion were made for dividend and interest payments.
Cash and cash equivalents increased compared to June 30, 2001 by
(euro)0.2 billion to (euro)0.8 billion. Including marketable securities and
other instruments, the Group had liquid assets of (euro)0.9 billion on June 30,
2002.
Earnings performance
The operating result - including discontinuing operations - for the first half
of 2002 declined by 35 percent to (euro)1.1 billion. This includes a (euro)0.5
billion one-time gain from the sale of company-owned housing units and net
restructuring charges of (euro)0.3 billion.
The non-operating result improved by (euro)121 million to minus
(euro)109 million mainly due to the (euro)0.3 billion gain from the sale of the
remaining shares we held in Agfa-Gevaert N.V. Income tax expense amounted to
(euro)0.2 billion. The tax-free income from the divestments brought the
effective tax rate down to 16 percent.
Net income fell by 19 percent, or (euro)0.2 billion, to (euro)0.8
billion.
Balance Sheet Structure
(euro) million
June 30, 2002 June 30, 2001 Dec. 31, 2001
------------------------------------------------------------------------------
Noncurrent assets 25,728 22,305 21,702
------------------------------------------------------------------------------
Current assets 18,969 17,010 15,337
------------------------------------------------------------------------------
Stockholders' equity 15,648 17,296 16,922
------------------------------------------------------------------------------
Minority stockholders' interest 149 103 98
------------------------------------------------------------------------------
Liabilities 28,900 21,916 20,019
------------------------------------------------------------------------------
Total assets 44,697 39,315 37,039
------------------------------------------------------------------------------
Asset and capital structure
Total assets increased during the first six months of 2002 by (euro)7.7 billion
to (euro)44.7 billion due to the acquisition of Aventis CropScience. Noncurrent
assets rose by (euro)4.0 billion to (euro)25.7 billion, now amounting to 58
percent of the total. Current assets grew by (euro)3.7 billion to (euro)19.0
billion, with inventories accounting for (euro)0.9 billion of the increase and
trade accounts receivable for (euro)1.6 billion.
Stockholders' equity declined by (euro)1.3 billion to (euro)15.6
billion. While (euro)0.1 billion was allocated out of net income after payment
of the dividend for 2001, currency translations and the measurement of financial
instruments according to IAS 39 diminished equity by (euro)1.4 billion.
Liabilities, including deferred taxes and deferred income, grew by
(euro)8.9 billion to (euro)28.9 billion. The main factor here was a (euro)6.0
billion increase in financial obligations, due primarily to the bonds issued in
connection with the acquisition of Aventis CropScience.
Capital expenditures
In the first half of 2002 we spent (euro)1.0 billion for intangible assets,
property, plant and equipment. This amount was fully financed out of the
(euro)1.3 billion amortization and depreciation charge. Investment focused on
Europe and North America, which accounted for (euro)0.5 billion and (euro)0.4
billion, respectively.
Our (euro)2.4 billion capital spending budget for the full year 2002 is
not expected to be fully utilized.
Employees
On June 30, 2002 the Bayer Group had 127,800 employees. Of these, 124,200 worked
in continuing operations, compared with 113,000 at the start of the year. The
first-time inclusion of the Aventis CropScience group increased headcount by
13,200. Personnel expenses rose by (euro)45 million compared with the first half
of 2001.
Outlook
The strategic realignment of the Bayer Group, involving the creation of four
independent operating units, has reached an advanced stage.
HealthCare covers the broad product portfolio of the Pharmaceuticals,
Biological Products, Consumer Care, Diagnostics and Animal Health business
groups. We expect this new constellation will contribute to more favorable cost
structures, a stronger market focus and much greater flexibility, especially
with a view to possible alliances.
CropScience should quickly integrate the business acquired from
Aventis. The conditions under which the acquisition was approved by the European
Commission and the U.S. Federal Trade Commission mean we will divest or
outlicense products with a sales volume totaling (euro)650 million to (euro)700
million. This year's earnings will be impaired by integration charges and
purchase accounting amortization.
In Polymers and Chemicals we do not anticipate a sustained business
improvement in the second half in view of the economic situation, so the only
way we can increase efficiency in the short term is through cost containment. We
are seeking alliances for our chemicals business in light of the ongoing
industry consolidation. We expect the antitrust authorities to consent to our
sale of the Haarmann & Reimer group to EQT Northern Europe Equity Funds by the
end of this year. A debt-free purchase price of (euro)1.66 billion has been
agreed.
Despite the poor economic prospects, we expect net income to exceed
last year's level due to the divestments.
Bayer Group Highlights
2nd Quarter 1st Half
2002 2001 2002 2001
Sales ((euro)million) 7,504 8,071 14,737 15,972
of which discontinuing operations 233 281 456 679
-----------------------------------------------------------------------------------------
Sales from continuing operations 7,271 7,790 14,281 15,293
-----------------------------------------------------------------------------------------
Change -6.7% +3.0% -6.6% +6.8%
Domestic companies 2,038 2,193 4,059 4,484
-----------------------------------------------------------------------------------------
Change - 7.1 % -7.1% -9.5% +1.8%
Foreign companies 5,233 5,597 10,222 10,809
Change - 6.5 % +7.5% -5.4% +9.0%
-----------------------------------------------------------------------------------------
Operating result ((euro)million) 248 823 1,088 1,671
of which discontinuing operations 21 333 43 372
-----------------------------------------------------------------------------------------
Operating result from continuing operations 227 490 1,045 1,299
Change -53.7% -47.4% -19.6% -32.3%
-----------------------------------------------------------------------------------------
Operating result from continuing operations
before exceptional items 318 536 808 1,450
Change -40.7% -42.5% -44.3% -25.3%
-----------------------------------------------------------------------------------------
Return on sales before exceptional items 4.4% 6.9% 5.7% 9.5%
-----------------------------------------------------------------------------------------
Net income ((euro)million) 293 564 816 1,006
Change -48.0% +18.2% -18.9% -2.6%
-----------------------------------------------------------------------------------------
Gross cash flow ((euro)million) 757 769 1,591 1,836
Change -1.6% -32.1% -13.3% -15.4%
-----------------------------------------------------------------------------------------
Capital expenditures ((euro)million)* 463 602 993 1,123
Domestic companies 259 300 443 536
-----------------------------------------------------------------------------------------
Foreign companies 204 302 550 587
Number of employees* 124,200 114,400
-----------------------------------------------------------------------------------------
as of June 30
Personnel expenses ((euro)million) 1,957 1,943 3,845 3,800
-----------------------------------------------------------------------------------------
Change +0.7% +8.4% +1.2% +7.8%
* continuing operations
Bayer Group Consolidated Statements of Income
(Summary)
2nd Quarter 1st Half
2002 2001 2002 2001
(euro) million (euro) million (euro) million (euro) million
Net sales 7,504 8,071 14,737 15,972
----------------------------------------------------------------------------------------------------------
Net sales from discontinuing operations (233) (281) (456) (679)
----------------------------------------------------------------------------------------------------------
Net sales from continuing operations 7,271 7,790 14,281 15,293
----------------------------------------------------------------------------------------------------------
Cost of goods sold (4,359) (4,393) (8,474) (8,320)
----------------------------------------------------------------------------------------------------------
Gross profit 2,912 3,397 5,807 6,973
----------------------------------------------------------------------------------------------------------
Selling expenses (1,614) (1,819) (3,192) (3,498)
----------------------------------------------------------------------------------------------------------
Research and development expenses (618) (619) (1,171) (1,183)
----------------------------------------------------------------------------------------------------------
General administration expenses (291) (286) (511) (539)
----------------------------------------------------------------------------------------------------------
Other operating income (expenses) - net (162) (183) 112 (454)
----------------------------------------------------------------------------------------------------------
Operating result from continuing operations 227 490 1,045 1,299
----------------------------------------------------------------------------------------------------------
Operating result from discontinuing
operations 21 333 43 372
----------------------------------------------------------------------------------------------------------
Operating result 248 823 1,088 1,671
----------------------------------------------------------------------------------------------------------
Non-operating result 48 (104) (109) (230)
----------------------------------------------------------------------------------------------------------
Income before income taxes 296 719 979 1,441
----------------------------------------------------------------------------------------------------------
Income taxes 0 (153) (159) (437)
----------------------------------------------------------------------------------------------------------
Income after taxes 296 566 820 1,004
----------------------------------------------------------------------------------------------------------
Minority stockholders' interest (3) (2) (4) 2
----------------------------------------------------------------------------------------------------------
Net income 293 564 816 1,006
----------------------------------------------------------------------------------------------------------
Earnings per share ((euro)) 0.40 0.77 1.12 1.38
Bayer Group Consolidated Balance Sheets
(Summary)
June 30, 2002 June 30, 2001 Dec. 31, 2001
(euro) million (euro) million (euro) million
ASSETS
Noncurrent assets 25,728 22,305 21,702
-------------------------------------------------------------------------------
Inventories 6,727 6,640 5,818
-------------------------------------------------------------------------------
Receivables 10,463 9,657 8,140
-------------------------------------------------------------------------------
Liquid assets 872 666 771
-------------------------------------------------------------------------------
Current assets 18,062 16,963 14,729
-------------------------------------------------------------------------------
Deferred taxes 907 47 608
-------------------------------------------------------------------------------
44,697 39,315 37,039
-------------------------------------------------------------------------------
of which discontinuing operations 778 869 820
STOCKHOLDERS' EQUITY AND LIABILITIES
Capital stock and reserves 4,812 4,812 4,812
-------------------------------------------------------------------------------
Retained earnings 10,151 9,913 9,841
-------------------------------------------------------------------------------
Net income 816 1,006 965
-------------------------------------------------------------------------------
Other comprehensive income
-------------------------------------------------------------------------------
Currency translation adjustment (206) 1,106 759
-------------------------------------------------------------------------------
Miscellaneous items 75 459 545
-------------------------------------------------------------------------------
Stockholders' equity 15,648 17,296 16,922
-------------------------------------------------------------------------------
Minority stockholders' interest 149 103 98
-------------------------------------------------------------------------------
Long-term liabilities 13,332 8,853 8,906
-------------------------------------------------------------------------------
Short-term liabilities 12,820 11,582 9,875
-------------------------------------------------------------------------------
Liabilities 26,152 20,435 18,781
-------------------------------------------------------------------------------
of which discontinuing operations 224 241 233
-------------------------------------------------------------------------------
Deferred taxes 2,748 1,481 1,238
-------------------------------------------------------------------------------
44,697 39,315 37,039
-------------------------------------------------------------------------------
The half-year statements are unaudited.
Bayer Group Consolidated Statements
of Changes in Stockholders' Equity (Summary)
Capital Retained Net Currency Miscellaneous Total
stock and earnings income translation items
reserves adjustment
(euro) million (euro)million (euro)million (euro)million (euro)million (euro)million
December 31, 2000 4,812 9,047 1,816 465 0 16,140
------------------------------------------------------------------------------------------------------------------------------
Dividend payment (1,022) (1,022)
------------------------------------------------------------------------------------------------------------------------------
Allocation to retained earnings 866 (794) 72
------------------------------------------------------------------------------------------------------------------------------
Exchange differences 641 641
------------------------------------------------------------------------------------------------------------------------------
Other changes in stockholders' equity 459 459
------------------------------------------------------------------------------------------------------------------------------
Income after taxes 1,006 1,006
------------------------------------------------------------------------------------------------------------------------------
June 30, 2001 4,812 9,913 1,006 1,106 459 17,296
------------------------------------------------------------------------------------------------------------------------------
December 31, 2001 4,812 9,841 965 759 545 16,922
------------------------------------------------------------------------------------------------------------------------------
Dividend payment (657) (657)
------------------------------------------------------------------------------------------------------------------------------
Allocation to retained earnings 310 (308) 2
------------------------------------------------------------------------------------------------------------------------------
Exchange differences (965) (965)
------------------------------------------------------------------------------------------------------------------------------
Other changes in stockholders' equity (470) (470)
------------------------------------------------------------------------------------------------------------------------------
Income after taxes 816 816
------------------------------------------------------------------------------------------------------------------------------
June 30, 2002 4,812 10,151 816 (206) 75 15,648
------------------------------------------------------------------------------------------------------------------------------
Key Data by Segment (2nd Quarter)
Health Care CropScience Polymers
2nd Quarter Pharmaceuticals Consumer Animal Health CropScience Plastics & Polyurethanes
& Biological Care & Rubber & Coatings
Products Diagnostics and
Colorants &
Fibers
2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter
(euro)million 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
Net sales (external) 1,167 1,510 971 1,033 212 232 1,083 866 1,415 1,467 1,350 1,416
----------------------------------------------------------------------------------------------------------------------
o Change in(euro) -22.7% +2.9% -6.0% +5.9% -8.6% -5.3% +25.1% +5.2% -3.5% +1.4% -4.7% -10.8%
----------------------------------------------------------------------------------------------------------------------
o Change in local -18.1% +0.9% -0.1% +3.1% -3.6% -7.8% +28.4% +3.3% -1.4% -1.1% -1.2% -13.1%
currencies
----------------------------------------------------------------------------------------------------------------------
Intersegment sales 9 9 1 15 1 4 9 31 35 31 10 41
----------------------------------------------------------------------------------------------------------------------
Operating result before 38 30 112 57 43 56 20 162 98 131 41 65
exceptional items
----------------------------------------------------------------------------------------------------------------------
Return on sales before 3.3% 2.0% 11.5% 5.5% 20.3% 24.1% 1.8% 18.7% 6.9% 8.9% 3.0% 4.6%
exceptional items
----------------------------------------------------------------------------------------------------------------------
Exceptional items 64 12 (9) (2) 0 0 0 0 (67) (11) (61) (9)
----------------------------------------------------------------------------------------------------------------------
Operating result 102 42 103 55 43 56 20 162 31 120 (20) 56
----------------------------------------------------------------------------------------------------------------------
Return on sales 8.7% 2.8% 10.6% 5.3% 20.3% 24.1% 1.8% 18.7% 2.2% 8.2% (1.5)% 4.0%
----------------------------------------------------------------------------------------------------------------------
Gross cash flow 71 21 123 111 51 46 152 191 104 200 215 209
----------------------------------------------------------------------------------------------------------------------
Chemicals
2nd Quarter Chemicals Reconciliation Continuing Discontinuing Bayer Group
Operations Operations
2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter
(euro)million 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
Net sales (external) 853 1,027 220 239 7,271 7,790 233 281 7,504 8,071
-------------------------------------------------------------------------------------------------------
o Change in(euro) -16.9% +18.6% -6.7% +3.0% -7.0% +2.1%
-------------------------------------------------------------------------------------------------------
o Change in local -10.6% +17.1% -2.6% +0.8% -3.0% +0.0%
currencies
-------------------------------------------------------------------------------------------------------
Intersegment sales 93 134 (158) (265)
-------------------------------------------------------------------------------------------------------
Operating result before 30 123 (64) (88) 318 536 21 16 339 552
exceptional items
-------------------------------------------------------------------------------------------------------
Return on sales before 3.5% 12.0% 4.4% 6.9% 4.5% 6.8%
exceptional items
-------------------------------------------------------------------------------------------------------
Exceptional items (17) (22) (1) (14) (91) (46) 0 317 (91) 271
-------------------------------------------------------------------------------------------------------
Operating result 13 101 (65) (102) 227 490 21 333 248 823
-------------------------------------------------------------------------------------------------------
Return on sales 1.5% 9.8% 3.1% 6.3% 3.3% 10.2%
-------------------------------------------------------------------------------------------------------
Gross cash flow 71 113 (59) (138) 728 753 29 16 757 769
-------------------------------------------------------------------------------------------------------
2001 figures restated
Key Data by Segment (1st Half)
Health Care CropScience Polymers
1st Half Pharmaceuticals Consumer Animal Health CropScience Plastics & Polyurethanes
& Biological Care & Rubber & Coatings
Products Diagnostics and
Colorants &
Fibers
1st Half 1st Half 1st Half 1st Half 1st Half 1st Half
(euro)million 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
Net sales (external) 2,424 2,932 1,921 1,997 415 412 1,949 1,680 2,723 2,989 2,743 2,803
----------------------------------------------------------------------------------------------------------------------
o Change in(euro) -17.3% +2.5% -3.8% +5.9% +0.7% -6.6% +16.0% +1.7% -8.9% +6.3% -2.1% +5.5%
----------------------------------------------------------------------------------------------------------------------
o Change in local -15.5% +0.8% -0.9% +3.7% +3.1% -8.3% +18.0% +0.8% -8.4% +4.1% -0.7% +3.5%
currencies
----------------------------------------------------------------------------------------------------------------------
Intersegment sales 17 17 2 15 1 4 26 77 64 61 42 79
----------------------------------------------------------------------------------------------------------------------
Operating result before 169 315 175 130 93 78 164 375 122 316 106 112
exceptional items
----------------------------------------------------------------------------------------------------------------------
Return on sales before 7.0% 10.7% 9.1% 6.5% 22.4% 18.9% 8.4% 22.3% 4.5% 10.6% 3.9% 4.0%
exceptional items
----------------------------------------------------------------------------------------------------------------------
Exceptional items 56 8 (15) (12) 0 0 0 0 (76) (22) (154) (33)
----------------------------------------------------------------------------------------------------------------------
Operating result 225 323 160 118 93 78 164 375 46 294 (48) 79
----------------------------------------------------------------------------------------------------------------------
Return on sales 9.3% 11.0% 8.3% 5.9% 22.4% 18.9% 8.4% 22.3% 1.7% 9.8% (1.7)% 2.8%
----------------------------------------------------------------------------------------------------------------------
Gross cash flow 185 252 234 225 92 67 259 351 213 429 331 350
----------------------------------------------------------------------------------------------------------------------
Chemicals
1st Half Chemicals Reconciliation Continuing Discontinuing Bayer Group
Operations Operations
1st Half 1st Half 1st Half 1st Half 1st Half
(euro)million 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
Net sales (external) 1,700 2,050 406 430 14,281 15,293 456 679 14,737 15,972
-------------------------------------------------------------------------------------------------------
o Change in(euro) -17.1% +22.7% -6.6% +6.8% -7.7% +4.8%
-------------------------------------------------------------------------------------------------------
o Change in local -13.3% +21.5% -4.8% +5.0% -5.8% +3.1%
currencies
-------------------------------------------------------------------------------------------------------
Intersegment sales 188 245 (340) (498)
-------------------------------------------------------------------------------------------------------
Operating result before 107 255 (128) (131) 808 1,450 43 55 851 1,505
exceptional items
-------------------------------------------------------------------------------------------------------
Return on sales before 6.3% 12.4% 5.7% 9.5% 5.8% 9.4%
exceptional items
-------------------------------------------------------------------------------------------------------
Exceptional items (23) (73) 449 (19) 237 (151) 0 317 237 166
-------------------------------------------------------------------------------------------------------
Operating result 84 182 321 (150) 1,045 1,299 43 372 1,088 1,671
-------------------------------------------------------------------------------------------------------
Return on sales 4.9% 8.9% 7.3% 8.5% 7.4% 10.5%
-------------------------------------------------------------------------------------------------------
Gross cash flow 186 237 35 (136) 1,535 1,775 56 61 1,591 1,836
-------------------------------------------------------------------------------------------------------
2001 figures restated
Key Data by Region (2nd Quarter)
2nd Quarter Europe North America Asia/Pacific Latin America/
Africa/Middle East
2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter
(euro)million 2002 2001 2002 2001 2002 2001 2002 2001
Net sales (external) - by market 3,026 3,168 2,271 2,544 1,238 1,258 736 820
----------------------------------------------------------------------------------------------------------------------
Net sales (external) - by point of 3,390 3,519 2,303 2,637 1,049 1,033 529 601
origin
----------------------------------------------------------------------------------------------------------------------
o Change in(euro) -3.7% +4.5% -12.7% +3.9% +1.5% +4.0% -12.0% +10.5%
----------------------------------------------------------------------------------------------------------------------
o Change in local currencies -3.8% +4.3% -12.5% -2.3% +4.5% +8.3% +5.7% +6.2%
----------------------------------------------------------------------------------------------------------------------
Interregional sales 686 800 506 511 41 67 27 36
----------------------------------------------------------------------------------------------------------------------
Operating result before exceptional 149 510 103 (64) 82 97 18 77
items
----------------------------------------------------------------------------------------------------------------------
Return on sales before exceptional 4.4% 14.5% 4.5% (2.4)% 7.8% 9.4% 3.4% 12.8%
items
----------------------------------------------------------------------------------------------------------------------
Exceptional items 50 (1) (141) (35) 0 4 0 0
----------------------------------------------------------------------------------------------------------------------
Operating result 199 509 (38) (99) 82 101 18 77
----------------------------------------------------------------------------------------------------------------------
Return on sales 5.9% 14.5% (1.7)% (3.8)% 7.8% 9.8% 3.4% 12.8%
----------------------------------------------------------------------------------------------------------------------
Gross cash flow 455 538 239 58 88 103 17 76
----------------------------------------------------------------------------------------------------------------------
2nd Quarter Reconciliation Continuing Discontinuing Bayer Group
Operations Operations
2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter
(euro)million 2002 2001 2002 2001 2002 2001 2002 2001
Net sales (external) - by market 7,271 7,790 233 281 7,504 8,071
----------------------------------------------------------------------------------------------------------------------
Net sales (external) - by point of 7,271 7,790 233 281 7,504 8,071
origin
----------------------------------------------------------------------------------------------------------------------
o Change in(euro) -6.7% +3.0% -7.0% +2.1%
----------------------------------------------------------------------------------------------------------------------
o Change in local currencies -2.6% +0.8% -3.0% +0.0%
----------------------------------------------------------------------------------------------------------------------
Interregional sales (1,260) (1,414)
----------------------------------------------------------------------------------------------------------------------
Operating result before exceptional (34) (84) 318 536 21 16 339 552
items
----------------------------------------------------------------------------------------------------------------------
Return on sales before exceptional 4.4% 6.9% 4.5% 6.8%
items
----------------------------------------------------------------------------------------------------------------------
Exceptional items 0 (14) (91) (46) 0 317 (91) 271
----------------------------------------------------------------------------------------------------------------------
Operating result (34) (98) 227 490 21 333 248 823
----------------------------------------------------------------------------------------------------------------------
Return on sales 3.1% 6.3% 3.3% 10.2%
----------------------------------------------------------------------------------------------------------------------
Gross cash flow (71) (22) 728 753 29 16 757 769
----------------------------------------------------------------------------------------------------------------------
2001 figures restated
Key Data by Region (1st Half)
1st Half Europe North America Asia/Pacific Latin America/
Africa/Middle East
1st Half 1st Half 1st Half 1st Half
(euro)million 2002 2001 2002 2001 2002 2001 2002 2001
Net sales (external) - by market 6,024 6,423 4,498 4,814 2,338 2,462 1,421 1,594
----------------------------------------------------------------------------------------------------------------------
Net sales (external) - by point of 6,720 7,150 4,588 5,014 1,950 1,996 1,023 1,133
origin
----------------------------------------------------------------------------------------------------------------------
o Change in (euro) -6.0% +6.2% -8.5% +5.9% -2.3% +10.4% -9.7% +8.7%
----------------------------------------------------------------------------------------------------------------------
o Change in local currencies -6.1% +6.0% -8.3% -0.3% +0.7% +14.7% +8.0% +4.4%
----------------------------------------------------------------------------------------------------------------------
Interregional sales 1,446 1,676 1,007 966 88 134 49 64
----------------------------------------------------------------------------------------------------------------------
Operating result before exceptional 622 1,320 97 (33) 152 207 55 115
items
----------------------------------------------------------------------------------------------------------------------
Return on sales before exceptional 9.3% 18.5% 2.1% (0.7)% 7.8% 10.4% 5.4% 10.2%
items
----------------------------------------------------------------------------------------------------------------------
Exceptional items 477 (42) (239) (90) 0 0 (1) 0
----------------------------------------------------------------------------------------------------------------------
Operating result 1,099 1,278 (142) (123) 152 207 54 115
----------------------------------------------------------------------------------------------------------------------
Return on sales 16.4% 17.9% (3.1)% (2.5)% 7.8% 10.4% 5.3% 10.2%
----------------------------------------------------------------------------------------------------------------------
Gross cash flow 1,013 1,280 415 281 158 200 66 117
----------------------------------------------------------------------------------------------------------------------
1st Half Reconciliation Continuing Discontinuing Bayer Group
Operations Operations
1st Half 1st Half 1st Half 1st Half
(euro)million 2002 2001 2002 2001 2002 2001 2002 2001
Net sales (external) - by market 14,281 15,293 456 679 14,737 15,972
----------------------------------------------------------------------------------------------------------------------
Net sales (external) - by point of 14,281 15,293 456 679 14,737 15,972
origin
----------------------------------------------------------------------------------------------------------------------
o Change in (euro) -6.6% +6.8% -7.7% +4.8%
----------------------------------------------------------------------------------------------------------------------
o Change in local currencies -4.8% +5.0% -5.8% +3.1%
----------------------------------------------------------------------------------------------------------------------
Interregional sales (2,590) (2,840)
----------------------------------------------------------------------------------------------------------------------
Operating result before exceptional (118) (159) 808 1,450 43 55 851 1,505
items
----------------------------------------------------------------------------------------------------------------------
Return on sales before exceptional 5.7% 9.5% 5.8% 9.4%
items
----------------------------------------------------------------------------------------------------------------------
Exceptional items 0 (19) 237 (151) 0 317 237 166
----------------------------------------------------------------------------------------------------------------------
Operating result (118) (178) 1,045 1,299 43 372 1,088 1,671
----------------------------------------------------------------------------------------------------------------------
Return on sales 7.3% 8.5% 7.4% 10.5%
----------------------------------------------------------------------------------------------------------------------
Gross cash flow (117) (103) 1,535 1,775 56 61 1,591 1,836
----------------------------------------------------------------------------------------------------------------------
2001 figures restated
Published by: Forward-Looking Statements
Bayer AG This Interim Report contains forward-
looking statements. These statements
use words like "believes", "assumes",
Corporate Communications Division "expects" or similar formulations.
51368 Leverkusen, Germany Various known and unknown risks,
Phone +49 214 30 58992 uncertainties and other factors
Fax +49 214 30 71985 could lead to substantial differences
Distribution: phone +49 214 30 71816 between the actual future results,
Bayer on the Internet: financial situation, development or
www.bayer.com performance of our company and those
either expressed or implied by these
statements. These factors include,
among other things:
o downturns in the business cycle of
the industries in which we compete;
o new regulations, or changes to
existing regulations, that increase
our operating costs or otherwise
reduce our profitability;
o increases in the price of our raw
materials, especially if we are
unable to pass these costs along to
customers;
o loss or reduction of patent
protection for our products;
o liabilities, especially those
incurred as a result of
environmental laws or product
liability litigation;
o fluctuation in international
currency exchange rates as well as
changes in the general economic
climate; and
o other factors identified in this
Interim Report.
[BAYER LOGO] These factors include those discussed
in our public reports filed with the
Frankfurt Stock Exchange and with the
U.S. Securities and Exchange
Commission (including our Form 20-F).
In view of these uncertainties, we
caution readers not to place undue
reliance on these forward-looking
statements. We accept no obligation
to continue to report or update these
forward-looking statements or adjust
them to future events or
developments.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Bayer Aktiengesellschaft
(Registrant)
Date: August 5, 2002 By: /s/ ROSAR
--------------------------------------------
Name: Dr. Alexander Rosar
Title: Head of Investor Relations
/s/ BUCHMEIER
--------------------------------------------
Name: Dr. Armin Buchmeier
Title: Senior Counsel
Shearman & Sterling
Westend-Carree
Gervinusstrasse 17
D-60322 Frankfurt am Main
Germany
August 5, 2002
Division of Corporation Finance
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
U.S.A.
Bayer AG
Report on Form 6-K
Ladies and Gentlemen:
On behalf of our client, Bayer AG, please find enclosed Bayer's
report on Form 6-K, attaching:
1. One press release dated May 2, 2002.
2. One press release dated May 31, 2002.
3. One press release dated June 3, 2002.
4. One press release dated June 12, 2002.
5. One press release dated July 17, 2002.
6. One undated invitation to the Bayer AG 2002 Investor Conference
in London on August 1, 2002.
7. One press release dated July 24, 2002.
8. One press release dated July 24, 2002.
9. One undated press release containing the 1H 2002 Publication
Schedule.
10. One press release dated August 1, 2002.
11. One English-language version of Bayer AG's Interim Report for the
first half of 2002 as distributed at Bayer AG's Investor
Conference in London on August 1, 2002.
Please direct any questions concerning the enclosures to the
undersigned at (011-49-69) 9711-1000 or mdevlin@shearman.com.
We have delivered copies of this Form 6-K to the New York Stock
Exchange and to The Bank of New York, as depository for Bayer's ADR program.
Very truly yours,
/s/ MARK DEVLIN
Mark Devlin
Enclosures
cc: Mr. Stefan Jekel
The New York Stock Exchange
Mr. Patrick Mullally
The Bank of New York
Mr. Juergen Beunink
Bayer AG