April 14, 2011

Bayer in Japan Announced FY 2010 Results

  • Sales grow by 5 % to 231.5 billion yen

Tokyo, April 14, 2011- Bayer Holding Ltd. (Head office: Chiyoda-ku, Tokyo, President: Hans-Dieter Hausner) has announced the FY2010 (January-December) business results of the Bayer Group in Japan.

Before commenting on the business performance in 2010, Hans-Dieter Hausner, Senior Bayer Representative for Japan, reflected on the devastating earthquake and subsequent tsunami, which occurred on March 11. “I would like to express my heartfelt sympathy to all those who have suffered from the horrific disaster that occurred a month ago in Japan. We at Bayer will strive to combine our efforts in order to overcome this crisis together with our fellow Japanese citizens.” commented Hausner.
As an immediate financial aid, Bayer has provided 100 million yen to the Japanese Red Cross Society. Furthermore, the company has also made further cash donations while providing essential healthcare product donations that are urgently needed. In addition to the above, Bayer is calling on its employees worldwide to make donations through the Bayer Cares Foundation. The company will match the employee donations up to the amount of EUR 250,000. These funds will be used for a reconstruction project in one of the worst affected areas.

Bayer in Japan Sales Performance in 2010

2010 was another successful year for Bayer in Japan. The group sales increased by + 5% year on year to 231,540 million yen in 2010.
Despite the NHI price revision, sales of Healthcare increased by + 7.2% to 164,425 million yen, buoyed by the robust performance of our major products. CropScience sales, on the other hand, fell by -11.2% to 32,154 million yen, due to high product inventories in the distribution channels, the difficult market situation and adverse weather conditions, which significantly impacted on the business. MaterialScience sales grew by +13% to 34,960 million yen supported by the recovery in both the electrical/electronics and automotive sectors. Furthermore, Bayer MaterialScience also benefited from the successful implementation of initiatives aimed at improving the operational efficiency.
At the end of December 2010, Bayer in Japan employed 3,420 full-time employees.

Performance and topics by subgroup in 2010

Strategic products such as the hyperphosphatemia agent Fosrenol, the anticancer agent Nexavar, the antihyperlipidemia agent Zetia and the MRI liver contrast agent EOB-Primovist maintained their positions as key growth drivers, enabling Bayer HealthCare to grow faster than the market. Two new products were launched in 2010: the postprandial hyperglycemia treatment Glucobay OD in May, and the oral dysmenorrhea treatment YAZ in November. Additionally, Bayer HealthCare also commenced with the exclusive sales of Avelox, a new quinolone type oral antiinfective in July 2010.
The Animal Health division responded swiftly to the foot-and-mouth disease epidemic that erupted in Japan in spring 2010 through emergency imports of Antec Virkon S Disinfectant.
The Medical device business Medrad rebranded its CT injector, a move that paid off with a substantial increase in the division’s market share.

In 2010, Crop protection launched a new product lineup for Japan’s rice crop: Bodyguard, Possible, and Routine and refocused the business on four strategically important crop segments: rice, fruit trees & tea, vegetables and field crops.
The Environmental Science business unit also strengthened its product portfolio through the launch of new products, the lawn fungicide Dedicate Flowable and the lawn herbicide Weeden WDG in 2010.

The business to customers in the automotive and electrical/electronics sectors grew very well as the global economy began to recover. In addition, Bayer MaterialScience pursued marketing activities with significant potential, such as carbon nanotubes (CNT) and functional films. Moreover, through our Innovation Center in Amagasaki we continued to work on application development projects in collaboration with universities and other companies.

100th anniversary of Bayer in Japan: Regard 2011 as the new start for the next 100 years

2011 will be a very special year for the Bayer Group in Japan. Firstly, it marks the 150th year since Japan and Germany (then Prussia) entered into a treaty of amity and commerce. Secondly, 125 years ago - in 1886 - Bayer started importing dyes to Japan. And last but not least, 2011 marks the 100th anniversary of the establishment of Friedrich Bayer & Co. in Japan as a fully owned subsidiary of Bayer.

We therefore regard this year as the start for our next 100 years and will place our efforts towards continuing to deliver sustainable growth.

Bayer in Japan: Highlights of 2010 (million yen)

About Bayer in Japan
In Japan, Bayer is known as the company that developed Aspirin, an antipyretic-analgesic that has been on the market for more than 100 years. Bayer in Japan offers high value-added products and services in a broad range of fields, from healthcare, crop science and high-tech materials to contribute to the health and living of general consumers and the industry. Bayer in Japan has total sales of 231,540 million yen (FY2010) and 3,420 employees.

Forward-Looking Statements
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup 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 www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Bayer Holding Ltd.
Tokyo, April 14, 2011