Management Report
Performance by Subgroup and Segment
Our business activities are grouped into the HealthCare, CropScience and MaterialScience subgroups. The following changes apply compared to the 2005 Annual Report: as of the first quarter of 2006, the “Pharmaceuticals, Biological Products” segment was renamed “Pharmaceuticals.” As of the second quarter of 2006, this segment also includes the acquired Schering AG business. Also since the second quarter of 2006, the Diagnostics Division has been reported in the financial statements of the Bayer Group as a discontinued operation. At the same time, the former Consumer Care and Animal Health segments were grouped together with the Diabetes Care Division to form the new segment “Consumer Health.”
Furthermore, the H.C. Starck and Wolff Walsrode activities of Bayer MaterialScience are reported in the 2006 financial statements of the Bayer Group as discontinued operations. The commentaries in this report relate exclusively to continuing operations, except where specific reference is made to discontinued operations or to a total value (total). The 2005 data are restated accordingly.
Furthermore, the H.C. Starck and Wolff Walsrode activities of Bayer MaterialScience are reported in the 2006 financial statements of the Bayer Group as discontinued operations. The commentaries in this report relate exclusively to continuing operations, except where specific reference is made to discontinued operations or to a total value (total). The 2005 data are restated accordingly.
| Sales by Subgroup and Segment | 2005 | 2005 share of Group | 2006 | 2006 share of Group |
| € million | % | € million | % | |
| HealthCare | 7,996 | 32 | 11,724 | 40 |
| Pharmaceuticals | 4,067 | 16 | 7,478 | 26 |
| Consumer Health | 3,929 | 16 | 4,246 | 14 |
| CropScience | 5,896 | 24 | 5,700 | 20 |
| Crop Protection | 4,874 | 20 | 4,644 | 16 |
| Environmental Science/BioScience | 1,022 | 4 | 1,056 | 4 |
| MaterialScience | 9,446 | 38 | 10,161 | 35 |
| Materials | 2,837 | 11 | 2,925 | 10 |
| Systems | 6,609 | 27 | 7,236 | 25 |
| Reconciliation | 1,363 | 6 | 1,371 | 5 |
| Continuing operations | 24,701 | 100 | 28,956 | 100 |
2005 figures restated



Chairman’s Letter
Performance by Subgroup and Segment
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