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Bayer CropScience
 Crop Protection |
| Environmental Science/BioScience |
| Bayer CropScience | 2006 | 2007 | Change |
| € million | € million | % | |
| Sales | 5,700 | 5,826 | +2.2 |
| Crop Protection | 4,644 | 4,781 | +3.0 |
| Environmental Science/BioScience | 1,056 | 1,045 | -1.0 |
| Sales by Region | |||
| Europe | 2,251 | 2,383 | +5.9 |
| North America | 1,457 | 1,332 | -8.6 |
| Asia/Pacific | 907 | 913 | +0.7 |
| Latin America/Africa/Middle East | 1,085 | 1,198 | +10.4 |
| EBITDA1 | 1,166 | 1,204 | +3.3 |
| Special items | (38) | (120) | |
| EBITDA before special items2 | 1,204 | 1,324 | +10.0 |
| EBITDA margin before special items | 21.1% | 22.7% | |
| EBIT1 | 584 | 656 | +12.3 |
| Special items | (57) | (130) | |
| EBIT before special items2 | 641 | 786 | +22.6 |
| Gross cash flow1 | 900 | 961 | +6.8 |
| Net cash flow1 | 898 | 1,040 | +15.8 |
1 for definition see Bayer Group Key Data
2 for definition see also Calculation of EBIT(DA) Before Special Items
2 for definition see also Calculation of EBIT(DA) Before Special Items
| Best-Selling Bayer CropScience Products* | 2006 | 2007 | Change | Currency- adjusted change |
| € million | € million | % | % | |
| Confidor®/Gaucho®/Admire®/Merit® (Insecticides/Seed Treatment/Environmental Science) | 564 | 556 | -1.4 | +1.6 |
| Flint®/Stratego®/Sphere® (Fungicides) | 181 | 243 | +34.3 | +36.7 |
| Basta®/Liberty® (Herbicides) | 229 | 241 | +5.2 | +10.2 |
| Poncho® (Seed Treatment) | 127 | 237 | +86.6 | +98.1 |
| Folicur®/Raxil® (Fungicides/Seed Treatment) | 276 | 235 | -14.9 | -13.6 |
| Atlantis® (Herbicides) | 169 | 207 | +22.5 | +23.1 |
| Puma® (Herbicides) | 196 | 187 | -4.6 | -2.0 |
| Decis®/K-Othrine® (Insecticides/Environmental Science) | 183 | 178 | -2.7 | +0.4 |
| Proline® (Fungicides) | 144 | 175 | +21.5 | +22.3 |
| Betanal® (Herbicides) | 120 | 127 | +5.8 | +8.2 |
| Total | 2,189 | 2,386 | +9.0 | +12.0 |
| Proportion of Bayer CropScience sales | 38% | 41% |
* Figures are based on active ingredient class. For the sake of clarity, only the principal brands and business units are listed.
CropScience raised its sales by 2.2 percent in 2007, to €5,826 million (2006: €5,700 million). Currency- and portfolio-adjusted sales increased by 5.6 percent.
EBITDA of the CropScience subgroup before special items grew by 10.0 percent to €1,324 million (2006: €1,204 million). This rise in earnings was attributable to higher volumes and cost savings, which more than offset the declining margins caused by negative currency effects. EBIT before special items climbed 22.6 percent to €786 million. Earnings were diminished by special charges for the cost-structure program initiated in 2006 and litigation-related defense costs. EBIT after special items advanced by 12.3 percent to €656 million (2006: €584 million).
EBITDA of the CropScience subgroup before special items grew by 10.0 percent to €1,324 million (2006: €1,204 million). This rise in earnings was attributable to higher volumes and cost savings, which more than offset the declining margins caused by negative currency effects. EBIT before special items climbed 22.6 percent to €786 million. Earnings were diminished by special charges for the cost-structure program initiated in 2006 and litigation-related defense costs. EBIT after special items advanced by 12.3 percent to €656 million (2006: €584 million).
Crop Protection
Sales of the Crop Protection segment in 2007 came in at €4,781 million, up 3.0 percent from the previous year (€4,644 million). Currency- and portfolio-adjusted sales grew by 6.3 percent.
Our crop protection business as a whole benefited from the positive conditions on the world’s agricultural markets, particularly the higher prices for agricultural commodities, increased cultivation of crops for the production of biofuels and an improved market environment in Latin America. Our young, innovative products showed a particularly pleasing trend. Sales of active ingredients introduced in core markets since 2000 rose by a third compared with 2006, to nearly €1.4 billion.
Our crop protection business as a whole benefited from the positive conditions on the world’s agricultural markets, particularly the higher prices for agricultural commodities, increased cultivation of crops for the production of biofuels and an improved market environment in Latin America. Our young, innovative products showed a particularly pleasing trend. Sales of active ingredients introduced in core markets since 2000 rose by a third compared with 2006, to nearly €1.4 billion.
| Crop Protection | 2006 | 2007 | Change |
| € million | € million | % | |
| Sales | 4,644 | 4,781 | +3.0 |
| Herbicides | 1,758 | 1,725 | -1.9 |
| Fungicides | 1,200 | 1,270 | +5.8 |
| Insecticides | 1,219 | 1,181 | -3.1 |
| Seed Treatment | 467 | 605 | +29.6 |
| Sales by Region | |||
| Europe | 1,909 | 2,035 | +6.6 |
| North America | 996 | 912 | -8.4 |
| Asia/Pacific | 772 | 769 | -0.4 |
| Latin America/Africa/Middle East | 967 | 1,065 | +10.1 |
| EBITDA1 | 889 | 1,008 | +13.4 |
| Special items | (38) | (85) | |
| EBITDA before special items2 | 927 | 1,093 | +17.9 |
| EBITDA margin before special items | 20.0% | 22.9% | |
| EBIT1 | 384 | 537 | +39.8 |
| Special items | (57) | (95) | |
| EBIT before special items2 | 441 | 632 | +43.3 |
| Gross cash flow1 | 691 | 799 | +15.6 |
| Net cash flow1 | 748 | 881 | +17.8 |
1 for definition see Bayer Group Key Data
2 for definition see also Calculation of EBIT(DA) Before Special Items
2 for definition see also Calculation of EBIT(DA) Before Special Items
Sales in the Herbicides business unit amounted to €1,725 million, which was 1.9 percent below the previous year’s figure of €1,758 million. On a currency- and portfolio-adjusted basis, however, business increased by 1.1 percent. While cotton and soybean herbicide sales in North America declined due to a reduction in acreages, business with cereal herbicides expanded strongly in Europe, thanks to the successful marketing of young products such as 
Atlantis® and Sekator®. We also further increased global sales of the Basta®/Liberty® product family.
In the Fungicides business unit, sales moved ahead by 5.8 percent to €1,270 million (2006: €1,200 million), or by 7.4 percent when adjusted to reflect the effects of currency translation and portfolio changes. The mild, wet weather in many parts of Europe led to higher sales, particularly of products used in cereals, potatoes and grapes. Business with our soybean fungicides benefited from the general market recovery in Latin America. In particular, we recorded an increased demand for our cereal fungicidesProline® and Fandango®, the potato fungicide Infinito® launched in 2006, and products from the Flint® family. The decline in sales of the Folicur® product group was mainly due to the planned shift toward our young fungicidal active ingredients and new mix products.
Sales in the Insecticides business, at €1,181 million, were down by 3.1 percent from the prior-year level of €1,219 million. Currency- and portfolio-adjusted sales grew by 1.7 percent. TheConfidor® product family turned in a very gratifying performance, particularly in Latin America. Marketing of our innovative insecticide Biscaya® in Europe was also successful. By contrast, the North American insecticides business was impacted by the increasing shift from soil- and foliar-applied products toward seed treatment products.
In the Seed Treatment business unit, sales rose by a substantial 29.6 percent to €605 million (2006: €467 million), and by 34.9 percent on a currency- and portfolio-adjusted basis. This growth was supported by the positive global performance of our entire product portfolio. The strongest gain in sales was achieved in North America, where a significant expansion of corn acreages boosted demand. In Latin America, our new products CropStar® in corn andAtento® in soybeans showed a very pleasing development, while we successfully took advantage of the positive market environment in Europe with customized product solutions for cereal crops. Global business with Poncho® nearly doubled.
EBITDA of the Crop Protection segment before special items rose by 17.9 percent to €1,093 million (2006: €927 million), due mainly to higher volumes, savings from our cost-structure and efficiency programs and higher margin contributions from the new products. Exchange rates, however, had a negative impact. EBIT before special items improved substantially, advancing by 43.3 percent to €632 million. Special charges for the restructuring program launched in 2006 amounted to €95 million. EBIT after special items expanded to €537 million (2006: €384 million).
Atlantis® and Sekator®. We also further increased global sales of the Basta®/Liberty® product family. In the Fungicides business unit, sales moved ahead by 5.8 percent to €1,270 million (2006: €1,200 million), or by 7.4 percent when adjusted to reflect the effects of currency translation and portfolio changes. The mild, wet weather in many parts of Europe led to higher sales, particularly of products used in cereals, potatoes and grapes. Business with our soybean fungicides benefited from the general market recovery in Latin America. In particular, we recorded an increased demand for our cereal fungicides
Proline® and Fandango®, the potato fungicide Infinito® launched in 2006, and products from the Flint® family. The decline in sales of the Folicur® product group was mainly due to the planned shift toward our young fungicidal active ingredients and new mix products. Sales in the Insecticides business, at €1,181 million, were down by 3.1 percent from the prior-year level of €1,219 million. Currency- and portfolio-adjusted sales grew by 1.7 percent. The
Confidor® product family turned in a very gratifying performance, particularly in Latin America. Marketing of our innovative insecticide Biscaya® in Europe was also successful. By contrast, the North American insecticides business was impacted by the increasing shift from soil- and foliar-applied products toward seed treatment products. In the Seed Treatment business unit, sales rose by a substantial 29.6 percent to €605 million (2006: €467 million), and by 34.9 percent on a currency- and portfolio-adjusted basis. This growth was supported by the positive global performance of our entire product portfolio. The strongest gain in sales was achieved in North America, where a significant expansion of corn acreages boosted demand. In Latin America, our new products CropStar® in corn and
Atento® in soybeans showed a very pleasing development, while we successfully took advantage of the positive market environment in Europe with customized product solutions for cereal crops. Global business with Poncho® nearly doubled. EBITDA of the Crop Protection segment before special items rose by 17.9 percent to €1,093 million (2006: €927 million), due mainly to higher volumes, savings from our cost-structure and efficiency programs and higher margin contributions from the new products. Exchange rates, however, had a negative impact. EBIT before special items improved substantially, advancing by 43.3 percent to €632 million. Special charges for the restructuring program launched in 2006 amounted to €95 million. EBIT after special items expanded to €537 million (2006: €384 million).
Environmental Science, BioScience
| Environmental Science, BioScience | 2006 | 2007 | Change |
| € million | € million | % | |
| Sales | 1,056 | 1,045 | -1.0 |
| Environmental Science | 714 | 663 | -7.1 |
| BioScience | 342 | 382 | +11.7 |
| Sales by Region | |||
| Europe | 342 | 348 | +1.8 |
| North America | 461 | 420 | -8.9 |
| Asia/Pacific | 135 | 144 | +6.7 |
| Latin America/Africa/Middle East | 118 | 133 | +12.7 |
| EBITDA1 | 277 | 196 | -29.2 |
| Special items | 0 | (35) | |
| EBITDA before special items2 | 277 | 231 | -16.6 |
| EBITDA margin before special items | 26.2% | 22.1% | |
| EBIT1 | 200 | 119 | -40.5 |
| Special items | 0 | (35) | |
| EBIT before special items2 | 200 | 154 | -23.0 |
| Gross cash flow1 | 209 | 162 | -22.5 |
| Net cash flow1 | 150 | 159 | +6.0 |
1 for definition see Bayer Group Key Data
2 for definition see also Calculation of EBIT(DA) Before Special Items
2 for definition see also Calculation of EBIT(DA) Before Special Items
In the Environmental Science, BioScience segment, sales dipped by 1.0 percent to €1,045 million (2006: €1,056 million). After adjusting for currency and portfolio effects, however, business was up by 2.6 percent. Environmental Science saw business move back by 7.1 percent in 2007, to €663 million (2006: €714 million). Currency-adjusted sales fell by 2.8 percent. Declining business with products for professional users due to strong generic competition and unfavorable weather conditions was partly offset by higher sales of home and garden products for consumers.
BioScience increased sales by 11.7 percent to €382 million (2006: €342 million), and by 14.1 percent on a currency- and portfolio-adjusted basis. Sales of our vegetable seed products rose primarily due to a strong market performance by our tomato, onion, carrot and melon seeds. In agricultural crop applications, we markedly expanded business with our canola seed marketed under theInVigor® brand, and increasing business with our Arize® rice seed also contributed to the expansion in sales.
EBITDA before special items of the Environmental Science, BioScience segment, at €231 million, came in €46 million below the previous year’s figure of €277 million. Earnings were diminished particularly by higher research and development expenditures at BioScience and also by the decline in sales of our Environmental Science business in North America. We also registered a negative earnings contribution from the Stoneville business, as this company was acquired in June of last year and thus subsequent to the close of the cotton seed season. EBIT before special items dropped by 23.0 percent, from €200 million in the prior year to €154 million in 2007. The net special charges of €35 million primarily included defense costs resulting from pending litigation in the United States related to genetically modified rice, along with costs for the restructuring program we initiated in 2006. EBIT declined by 40.5 percent to €119 million (2006: €200 million).
BioScience increased sales by 11.7 percent to €382 million (2006: €342 million), and by 14.1 percent on a currency- and portfolio-adjusted basis. Sales of our vegetable seed products rose primarily due to a strong market performance by our tomato, onion, carrot and melon seeds. In agricultural crop applications, we markedly expanded business with our canola seed marketed under the
InVigor® brand, and increasing business with our Arize® rice seed also contributed to the expansion in sales. EBITDA before special items of the Environmental Science, BioScience segment, at €231 million, came in €46 million below the previous year’s figure of €277 million. Earnings were diminished particularly by higher research and development expenditures at BioScience and also by the decline in sales of our Environmental Science business in North America. We also registered a negative earnings contribution from the Stoneville business, as this company was acquired in June of last year and thus subsequent to the close of the cotton seed season. EBIT before special items dropped by 23.0 percent, from €200 million in the prior year to €154 million in 2007. The net special charges of €35 million primarily included defense costs resulting from pending litigation in the United States related to genetically modified rice, along with costs for the restructuring program we initiated in 2006. EBIT declined by 40.5 percent to €119 million (2006: €200 million).
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