Management Report
2.1 Corporate Structure
Bayer AG, headquartered in Leverkusen, Germany, is the strategic management holding company for the Bayer Group. Business operations are conducted by the HealthCare, CropScience and MaterialScience subgroups.
The globally operating HealthCare subgroup is divided into the Pharmaceuticals and Consumer Health segments. The Pharmaceuticals segment comprises two business units focusing on prescription products: Women’s Healthcare and General Medicine; and Specialty Medicine. Our Consumer Health segment includes the Consumer Care, Medical Care and Animal Health divisions. The main focus of the Consumer Care Division is on non-prescription medicines and dietary supplements. Medical Care comprises the businesses with blood glucose meters, contrast-enhanced diagnostic imaging equipment, and mechanical systems for treating constricted or blocked blood vessels. The products of the Animal Health Division are destined for use in livestock and companion animals.
CropScience is active in the fields of chemical crop protection, non-agricultural pest and weed control, seed breeding and the improvement of plant traits. Organizationally, our CropScience business is divided into the Crop Protection segment and the Environmental Science, BioScience segment. Reflecting its product offering, Crop Protection is comprised of the Herbicides, Fungicides, Insecticides and Seed Treatment business units. Within the Environmental Science, BioScience segment, the Environmental Science business unit markets non-agricultural pest and weed control products while the BioScience business unit focuses on seeds and plant traits.
MaterialScience develops, manufactures and markets high-performance products in the areas of polyurethanes, polycarbonates, coating and adhesive raw materials, and functional films. This subgroup also manufactures and markets selected inorganic basic chemicals. MaterialScience is divided into the Polyurethanes, Polycarbonates, and Coatings, Adhesives, Specialties business units, and the Industrial Operations area.
Our subgroups are supported by the Business Services, Technology Services and Currenta service companies, which are reported in the reconciliation under “All Other Segments.” The reconciliation also includes the Corporate Center and consolidation effects.
Changes in corporate structure
Effective January 1, 2010, we transferred certain products from the Specialty Medicine to the General Medicine business unit within the Pharmaceuticals segment of the HealthCare subgroup. In addition, organizational changes resulted in the merger of the General Medicine and Women’s Healthcare business units and the integration of the Diagnostic Imaging business unit into the Specialty Medicine business unit in the second quarter of 2010. The prior-year figures have been restated accordingly. The Women’s Healthcare and General Medicine business unit was renamed “General Medicine” effective January 1, 2011.
| Key Data by Subgroup and Segment | [Table 3.3] |
|---|
| | Sales | EBIT | EBITDA before special items * |
| | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 |
| | € million | € million | € million | € million | € million | € million |
| HealthCare | 15,988 | 16,913 | 2,640 | 1,861 | 4,468 | 4,405 |
| Pharmaceuticals | 10,467 | 10,908 | 1,696 | 884 | 3,193 | 3,100 |
| Consumer Health | 5,521 | 6,005 | 944 | 977 | 1,275 | 1,305 |
| CropScience | 6,510 | 6,830 | 798 | 261 | 1,508 | 1,293 |
| Crop Protection | 5,424 | 5,493 | 713 | 600 | 1,301 | 1,025 |
| Environmental Science, BioScience |
1,086 |
1,337 |
85 |
(339) |
207 |
268 |
| MaterialScience | 7,520 | 10,154 | (266) | 780 | 446 | 1,356 |
| Reconciliation | 1,150 | 1,191 | (166) | (172) | 50 | 47 |
| Group | 31,168 | 35,088 | 3,006 | 2,730 | 6,472 | 7,101 |
| * For definition see Chapter 4.2 “Calculation of EBIT(DA) Before Special Items.” |