Bayer CropScience Limited. — Investor Presentation 2021

May 28, 2021

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May 28, 2021

To, General Manager, DCS - Corporate Relationship Department BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

SECURITY ID : BAYERCROP SECURITY CODE : 506285

Dear Sir,

Sub: Bayer CropScience Limited - Presentation at Investor Meet being held on May 28, 2021

In furtherance of our letter dated May 26, 2021, please find enclosed herewith the presentation that will be made at the Investor Meet of Bayer CropScience Limited being held on Friday, May 28, 2021.

Request you to kindly take the said presentation on record.

Bayer CropScience Ltd. CIN: L24210MH1958PLC011173

Registered and Corporate Office: Bayer House Central Avenue Hiranandani Estate Thane (West) – 400 607 Maharashtra, India

Tel : +91 22 2531 1234 Fax : +91 22 2545 5063 www.bayer.in www.cropscience.bayer.com

Thanking you,

Yours faithfully, for Bayer CropScience Limited

NIKUNJKUMAR JAYSUKHLAL SAVALIYA

Digitally signed by NIKUNJKUMAR JAYSUKHLAL SAVALIYA DN: c=IN, st=Gujarat, 2.5.4.20=f4b6303c6a9fe05eb04e62759179373cbcf4b728c7 3ed8032294e09b9e3e0c98, postalCode=390024, street=102 TITHI FLATS, BHADRAN NAGAR, NEW SAMA ROAD, CHHANI RD, VADODARA, serialNumber=d3cad62ac6fcdd76e7d78a49dee85262351ff 6c69d1c3b84d7669f10a495714a, o=Personal, cn=NIKUNJKUMAR JAYSUKHLAL SAVALIYA, pseudonym=edc1463c7f2e505c0cb80b5170d37433 Date: 2021.05.28 15:00:50 +05'30'

Nikunjkumar Savaliya

Company Secretary and Compliance Officer

Encl.: As above

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Bayer CropScience Limited Investors’ Meet

/////////// May 28, 2021

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Caution regarding forward-looking statements and Company Disclaimer

This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer management.

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lead to
These
on the
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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 https://www.bayer.com/en/.

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

/// BCSL Investor Meet /// May 28, 2021

Agenda

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Covid-19 response Bayer Global Update

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BCSL: Financial perspective BCSL: Business update Key Takeaways

/// BCSL Investor Meet /// May 28, 2021

Our efforts to counter Covid-19

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Bayer group efforts to counter Covid-19 in India Committed towards our employees, business operations & local communities

Employees

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Vaccination program for Additional employee Reimbursing expenses not
employees & families advisories covered under insurance
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Smooth functioning CP production Corn supplies Rice seed supplies Warehouses No supply impact for CH virtual business
of activities remains normal on track delayed continue to function PH products launch
Business
Vapi: No business impact yet SSCDN: Stable operations & focus on
Non-critical projects on hold providing medical emergency response other Bayer Group entities
Local
Educating & mobilizing Helpline for frontline
Communities local communities workers & farming Nutritious food 200,000 N95 masks Sponsoring beds in Oxygen generation 80 bed COVID care facility
about vaccination communities to tackle for marginalized & 1,000,000 3Ply major hospitals from existing Nitrogen set up at our non-
benefits mental health challenges communities masks to network across cities plant at Vapi site operational site at
hospitals Chittegaon, Aurangabad
/// BCSL Investor Meet /// May 28, 2021
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Bayer Global Financial update

/// BCSL Investor Meet /// May 28, 2021

Strong start into 2021

in € Million

Key Financials – Q1 2021

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SALES

12,328 (+3%*)

EBITDA before Special items 4,118 (-6%)

Highlights

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Crop Science:

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Strong growth supported by a better market environment, increase commodity prices for Soybean and Corn

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Pharmaceuticals:

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Continued recovery for elective treatments as well as positive performance of Eylea (Ophthalmology) & Xarelto (Cardiovascular)

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Consumer Health:

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Continued to outperform the market despite challenging Q1 with low C&C incidents and distorted PY comparison (COVID). Nutritionals and Dermatology with good growth

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*Adjusted for currency and portfolio effects

/// BCSL Investor Meet /// May 28, 2021

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BCSL Financial perspective

/// BCSL Investor Meet /// May 28, 2021

2019-20 2020-21

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Financial Performance

Revenue from Operations

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+18%
42,613 +60%
36,094
7,337
4,587
FY FY
Q4 Q4
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₹ millions

• Growth driven by Crop Protection products based on good monsoon, strong portfolio performance and good liquidation

• Low corn prices and reduced acreage affected Rabi / Spring corn sowing

Continued leveraging of combined distribution strength

Profit Before Exceptional Items and Tax

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+11%
7,894
7,133
+35%
735
543
20% 19% 12% 10%
FY FY Q4 Q4
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Revenue growth, spend management and synergies supported increase in Profit

Unfavorable portfolio mix from lower corn sales growth impacted gross margin

/// BCSL Investor Meet /// May 28, 2021

Balance Sheet

		₹millions	CY Strong cash position even after significant interim dividend payout Other Assets: Provision of INR1,272 mio. in current year for income tax under Vivad Se Vishwas Scheme Inventory and Trade payable: Higher purchases for upcoming season
As At	31-Mar-21	31-Mar-20
Assets
Fixed Assets	5,010	5,244
Inventories	13,251	9,635
Trade Receivable	7,549	7,180
Cash and Cash Equivalents	12,045	10,669
Other Assets	4,538	5,629
	42,393	38,357
Equity and Liabilities
PY Shareholders' Fund	25,503	25,725
Trade Payables	8,303	4,749
Provisions	1,680	1,844
Other Liabilities	6,907	6,039
	42,393	38,357

/// BCSL Investor Meet /// May 28, 2021

Cash Flow

Cash Flow
		₹ millions
For the year ended Operating profit before working capital changes Net change in Working Capital Taxes paid Net cash from/ (used in) operating activities Net cash from/ (used in) investing activities Net cash from/ (used in) financing activities Increase in Cash and Cash Equivalent	31-Mar-21	31-Mar-20
	8,566	7,737
	(74)	281
	(1,625)	(1,359)
	6,867	6,659
	67	(289)
	(5,558)	(1,483)
	1,376	4,887

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Higher cashflow from business operations Strong focus on collection and better incentivization Interim Dividend payment of INR 4,036 mio. in current year

/// BCSL Investor Meet /// May 28, 2021

Synergies delivered ahead of schedule

BCSL/MIL pro forma

Post Merger

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Topline Synergies from combined distribution and portfolio strength mainly from Corn, Roundup and Laudis

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CAGR -3.4%
CAGR -6.8%
2016-17 2017-18 2018-19 2019-20 2020-21
Revenue from Operations Profit
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Operational Cost Savings accelerated with timely integration of organizational and promotional measures

Integration One Time Cost related to employee separation and amalgamation expenses concluded

Strategic Reinvestment in New Busines models , including Smallholder initiatives, Digital to augment future growth

• Profit Before Tax and Exceptional Items

/// BCSL Investor Meet /// May 28, 2021

BCSL Business update

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/// BCSL Investor Meet /// May 28, 2021

COVID-19 impacting farmer behaviour & channel cashflow: factoring it in commercial decisions to tide over challenges

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Covid-19 Rural Context

Rural areas impacted across the country

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Agriculture related movement allowed but local authorities deciding on restrictions with no uniform rule across district / state

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Agricultural operations being sustained by farmers with local / family labour

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Adverse impact on commodity price of perishables - vegetables

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Farmer

Farmers restricting movement to reduce risk due to prevalence of COVID-19 in rural areas

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Limited access to labour will play a role in purchase decisions – similar to previous year

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Unlike normal, farmers may visit the market only once and buy what is available rather than explore the best solution / offer

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Channel

Shop opening duration being curtailed by local authorities despite agriculture inputs being defined as ‘essential’

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Retailers / Distributors holding cash for emergency COVID-19 requirement

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Channel cashflow impacted; both retailer & distributor lower ability and willingness to extend credit beyond a limit Lower risk appetite, unlike last year

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Commercial Ops

Restricted field movement; team impacted due to increasing cases

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Marketing, Capacity Building and Outreach efforts with farmer and channel moved online / digital

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Considering extending credit duration / waiver of interest for channel on a need-basis to ensure product availability

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On time & Last mile availability at retail points critical this season with little or no opportunity to make amends

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/// BCSL Investor Meet /// May 28, 2021

Outstanding Achievement in a tough environment in Jan-Mar quarter; Kharif outlook normal

Growth in CP driven by Veg, Rice & Apple and pre-orders of RUP. Loss of spray in wheat in North in Jan-Mar

Loss of Spring Corn acres due to low commodity price result in lower Seed sale in Jan-Mar; made inroads in silage segment Sales

CP Liquidation higher than last year; three-quarters of gain coming from Veg, Rice & Fruits; registered growth in almost all crops Historically low inventory & low return; qualitative improvement in AR and low DSOs

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Liquidation

Southwest monsoons most likely to be normal, according to the longrange forecast by the India Meteorological Department (IMD) - April 16, 2021

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Weather

Commodity price improvement in Oilseeds & Cotton, continued volatility in Corn; large gains in Soy & Rice at levels similar to last kharif Perishable Veg crops like tomato & cauliflower continue to be lower Commodity Price

Cotton acres expected to stay stable & normal kharif acres of Rice. Move to oilseeds / soy expected at the expense of Corn

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Acreages

/// BCSL Investor Meet /// May 28, 2021

Digital Initiatives creating value for farmers: AI application in apple orchards

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BCS Expert
Satellite
RIMpro
Call Centre
Market
Expert
5KM
10 KM
Field Officers
Apple Orchard
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Advance disease alert to farmers to improve quality of produce & create differentiation from competition No of Weather Stations: HP - 16; Kashmir - 11 No of Farmers’ Group: HP - 14; Kashmir - 8 No of Farmers Engaged: +6000 Call Centre: Kashmir - 1

/// BCSL Investor Meet /// May 28, 2021

Smallholders report substantial benefits from Bayer led initiatives & capacity building

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Early outcomes from impact assessment for smallholder outreach during Covid-19

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93% respondents used the kits (entirely or partially)

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Livelihood improvement

High recall of products used with majority willing to purchase next season and to recommend

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Financing Solutions & easy access to banking

Women empowerment & Rural development Access to:-

90% reported the kits played a positive role in enhancing yields and income

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Increase in avg yield as compared to use of conventional seeds (control group); across all crops 36%, 31%, 28% higher yield of corn, millets & rice respectively in the group that attended agronomy training

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Capacity building forums Holistic eco-system via one uniform platform Products, technology and markets

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Women farmers reported yield 19-20% below the average yield Scope for improvement in participation of women farmers in trainings

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A more focused approach needed to improve gender specific outcomes

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April 2021: United Nations Economic Commission for Europe (UNECE) special commendation to Better Life Farming

Key Takeaways

/// BCSL Investor Meet /// May 28, 2021

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Key Takeaways
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Successful Integration, leveraging our combined portfolio and channel strength

Improving Farm incomes and Sustainability - Core to our key deliverables

Good long-term outlook with strong focus on market expansion

Innovation Drive : New business models, brands, digital solutions to enhance the overall eco-system

Financial Discipline remains key to ensure Strategic Value Creation

/// BCSL Investor Meet /// May 28, 2021

Thank You!

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/// BCSL Investor Meet /// May 28, 2021