Soybeans

Latin America

Luis Offa
Head of Marketing, LATAM

Marcio Santos
Brazil Sales Lead

Santiago Schiappacasse
South America Soybean Strategy Lead

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 Cautionary Statements Regarding Forward-Looking Information

This presentation may contain forward-looking statements based on current assumptions and forecasts
made by Bayer 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 Bayer’s public reports which are available
on the Bayer website at http://www.bayer.com/.

The company assumes no liability whatsoever to update these forward-looking statements or to conform
them to future events or developments.

Guidance at constant currencies, not including portfolio divestitures if not mentioned differently.

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Fields of Opportunity
IP3 Soybeans
LATAM Soybeans

Non-Insect
Traited Refuge Intacta 2 Xtend

IP4 Soybeans

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 The Americas Lead the World in Soybean Production

About Soybeans Major Soybean Growing Geographies

(planted acres, 21/22)1

Total CP market globally: €12.0bn Asia / Pacific EMEA

48m 20m
Total Seed & Traits market globally: €5.9bn
India: 25m Russia: 7m
Soybeans have a wide range of uses; meal is primarily China: 21m 6%
Ukraine: 3m
used as a high protein livestock feed, and soybean 15%
oil in food and industrial uses like biodiesel
318m
Continually evolving weed resistance drives need for 50% Latin America
innovation in North America, while management of acres 157m

insect resistance is key in tropical Brazil Brazil: 101m

29% Argentina: 41m
Evolving fungal diseases can also be devastating to North America
yields in Brazil; requiring state-of-the art fungicides to 93m
manage U.S.A.: 87m
Canada: 5m

1 Source: internal estimates, planted acres as of 2021

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 #1 Global Soybean Trait Platform Complemented by
the Leading Soybean Fungicide Franchise in LATAM

BayerBayer
Crop Crop Science
Science 2021 2021
SalesSales
(€18.4
1 1bn)

Sales by Crop Served

Corn 35%

Soybeans 22%

Horticulture 14%

Cereals 10%

Others 6%

Cotton 5%

Oilseeds 3%

Rice 3%

Sugarcane & Beets 2%

Sales in Soybeans: ~€4bn
1 Source: Company estimates. Based on 2021 data, excluding Environmental Science sales. Crop protection sales allocated to crops where they are applied.
“Others” includes digital farming solutions, non-commercial crops, and non-identified crops.

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 Latin America’s Leader in Soy Seed & Traits and Crop Protection

Bayer LATAM Soybean Portfolio1

Bayer LATAM Soybean Footprint

Germplasm Biotech Traits

#1 Brazil soybean trait share of >80%;
just launched Intacta 2Xtend soybeans in
2021/22 season and expect >6m acres
in upcoming 2022/23 season
Intacta 2 Xtend delivered a performance
advantage of 2.89 bu/acre
Crop Protection share of market in Brazil
of ~20%; #1 in soybean fungicides with
Digital Crop Protection
Fox family of products
Partner in largest digital Ag marketplace
in Brazil; Orbia

1
Examples of key products in the Bayer portfolio; not a comprehensive representation

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 Fungicides: New Innovations Drive our Growth Potential in Brazil
Expect ~€1bn1 of Peak Sales Potential from Fox Portfolio of Fungicides

• Fox Xpro fungicide offers excellent control of all relevant • Adds an additional mode of action with next-gen technology
soybean diseases including Asian Soybean Rust Indiflin®3 to Fox Xpro
• #1 market position; >25% market share 2 in soybean fungicides • Pre-Launch in 2022; full scale launch in 2023
segment last season (3rd year after launch)

Industry Standard Fox Xpro Competitor4 Fox Supra

1
Internal estimates; 2 BIP, Spark, 21/22; 3 In collaboration with Sumitomo; 4 BASF Orkestra Ultra

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 Next-Gen Insect and Disease Control Critical for LATAM Soybeans
Pipeline Potential Balanced Across Key Global Crops

Crop Science Pipeline Peak Sales Potential

Seed, Trait, Crop Protection and Digital Solutions by Crop Served
Global Soybeans2: ~€6bn Peak Sales Potential
Products Specific to the LATAM Market

Other • Annual Germplasm Upgrades

• 3rd and 4th Generation Insect Protection Traits (IP3 &
IP4)
Horticulture
Corn • 4th and 5th Generation Herbicide Tolerance Traits (HT4
Up to €30bn1 & HT5)
Peak Sales
• New Crop Protection Formulations
Potential
Cereals
• Fox Supra Fungicide
• Plenexos Insecticide
• New MoA Herbicide (post-emergence broad acre)
Soybeans • Digital Tools (e.g. Disease Management)

1 Represents non-risk adjusted estimated peak sales for the combined breeding, biotech, crop protection and environmental science pipelines, as well as new business models and new value areas. ~50% incremental sales value.
Estimated to reach ~40% of peak sales potential by 2031, ~40% by 2032-2035 and ~20% by 2036+
2
Projects listed per crop are subset of the pipeline; selected top contributors to peak sales potential

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 Next-Gen Intacta Traits to Sustain Leading Franchise in Brazil
Intacta 2 Xtend Launched; IP3 Currently in Phase 3, IP4 Advanced to Phase 1

# 1 South America
soybean system1
Control IP3
Velvetbean Caterpillar
Control IP3
• Excellent control of soybean Infested Soybean Looper Infested
loopers, velvetbean caterpillar and
axil borer • IP3 in Phase 3; delivering multiple modes-of-action for
insect control
• Glyphosate tolerance provides
proven weed control and enables
2021 Field Days
conservation tillage

• Licensed to seed producers with • Industry-first with three proteins for insect control
>90% share of market in Brazil and resistance management, plus adds dicamba
tolerance for tough-to-control weeds
• On >85m acres in South America in
2020/21 • LAUNCHED on >800k acres in Brazil in
2021/22 season. Targeting more than 6m IP4
acres for the 2022/23 season. Boone, Iowa, June 2021

• Performance advantage of 2.89 bu/acre

• IP4 ADVANCED to Phase 1; focused on Brazil
IP3 = 3rd generation insect protection trait in soybeans
IP4 = 4th generation insect protection trait in soybeans
1 Data based on number of traited acres per Bayer internal estimates

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 Connecting Our People, FieldView and Our Core Business Products
Creating the Digital Mindset to Enable New Value for Growers and New Business Models

Selecting the best Showcasing Intacta Planting test

DEKALB Verango Crop strips to select
hybrids and planting nematode presence; RR2PRO
Corn at the optimal density Protection demonstrating results the best varieties
Soybeans

Control

Example: Planting w ith the right density on every acre to Example: Application map for nematode treatment w ith Verango Example: Nine soybean varieties yield test ​r esults
optimize yield demonstrating technology performance

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 Advancing New Solutions and Possibilities Through Digital
Reason to Believe: Optimistic Results in LATAM through New Business Model Pilots

+10% Incremental sales potential**

+5% Average productivity increase

+300 Customers vs. previous pilots

40 Net Promoter Score*

+95% Intent to Renew for Next Pilot

* Among interviewd customers[BR] **Safrinha 20/21

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 ORBIA: Largest Digital Ag-Marketplace in LATAM with Largest
Loyalty Program

• JV between Bayer, Bravium, Yara and Bayer Loyalty Program

Itau; Bayer with ~60% stake
• Connects growers, input providers and
grain traders to a network to expand their Points Earned Redeemable for
reach, secure financing, redeem rewards
from Bayer’s Impulso loyalty program, Products and Services in Orbia:
purchase and sell inputs

• Established in 2019 in Brazil, later + 600 + 3000

expanded to Argentina, Colombia services
and Mexico Products
available in benefit catalogue
• ~300 distributors with inputs such
as pesticides, seeds and fertilizers
• >200,000 registered growers
VIP customers also eligible to participate in exclusive Ag events
• Covers ~75% of planted area

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 Digital Unlocks Scalable Climate-Smart Business Models
Carbon Markets Valued at >$200bn/year1 and Growing with Consumers' Demand for Sustainability

has the potential to

Carbon Initiative
streamline the way carbon is measured,
verified and reported, to enable scalable,
climate-smart business models ~2,600 participating
farmers 10 covered
countries
~1.5m acres
globally

Quantification
Long-term program to provide annual incentives to Climate FieldView enrolled growers
for verified and validated climate-smart practices like no-till and cover cropping

Ranked #1 in the U.S., scoring very high in terms of grower trust 2

CO2e Total Enables 3 Expected Downstream Revenue Opportunities

Verification & Reporting
Carbon Product Carbon
Services sales assets

Project Carbonview for the U.S., a collaboration CHS Inc., largest Ag Coop in the U.S.,
with Bushel, The Andersons, and built on Amazon agreed to be our carbon program
Crop Rotation by Field Web Services cloud infrastructure, expected to provider, providing advice to growers
track carbon emissions across ethanol chain moving to sustainable practices.

1 Source: https://www.reuters.com/article/us-carbontrading-turnover/global-carbon-trading-turnover-at-record-214-billion-last-year-research-idUSKBN1ZN1RN; 2 Forward Group Research Carbon Credit Program Perceptions & Evaluation, July 2021

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 Bayer PRO Carbono: Largest Carbon Program in Brazil

DEVELOP AND IMPLEMENT MODELS TO CALCULATE

KG CARBON EQ PER MT OF SOYBEAN PRODUCED1 SOC STOCK AND FOOTPRINT FOR TROPICAL
AGRICULTURE

• Be a change agent PRO Carbono Avg

to create a carbon
neutral industry
Brazil Avg 3 SOIL CARBON METHODOLOGIES

• Increase productivity Global Avg

~300k SOIL ANALYSES
and profitability from
intensification of practices
to sequester carbon
0 1,000 2,000 3,000 4,000 5,000 10 Institutions

32 Researchers

• Measure and track Carbon Emissions of Soybean

with
Growers in Bayer’s PRO Carbono
70% lower than Brazil Average

1 Assumptions and challenges of carbon footprint accounting in agriculture - Marcelo Morandi and Marília Folegatti - Embrapa Meio Ambiente; SOC = Soil Organic Carbon

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 The Next Frontier: Evolution to Digitally Enhanced System Solutions
Illustration: Intacta 2Xtend Soybean System

Crop System Solutions

SEEDS & CROP

Tailored Solutions
Win by being more TRAITS PROTECTION DIGITAL

grower centric
Field and
SEEDS & CROP
Discrete Solutions TRAITS PROTECTION DIGITAL Zone Level
Crop Protection
OR OR Recommendations

SEEDS & CROP Field Level

TRAITS PROTECTION DIGITAL Field and Seed Placement
Recommendation
Zone Level
Crop Protection
Recommendations Targeted
Application
Perform ance Field Level IP3/HT4 Traited Recommendations

Transparency Seed Placement Soybeans Biological

Yield Analysis Recommendation
Solutions
Cover crops
Carbon
Program

Increased Value from Digital Enhancements to Grow Share of Farm

2022 Inputs to Outcomes 2030
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