Strategic management in the Bayer Group is kept separate from everyday
business activities. The subgroups and service companies operate independently
under the leadership of the management holding company Bayer AG, which
defines common values, goals and strategies for the entire enterprise and
is headed by the four-member Group Management Board. The Corporate Center
supports the Group Management Board in its tasks and also performs certain
common functions for the subgroups.
Help for hemophiliacs:
the new Kogenate® with Bio-Set
Bayer HealthCare plays
a major role in improving the health of people and animals
by researching, developing, manufacturing and marketing innovative
products for disease prevention, diagnosis and treatment.
Following the merger of the Biological Products and Pharmaceuticals
divisions to form a new organizational unit effective January
1, 2006, the activities of Bayer HealthCare are now organized
in five divisions: Animal Health, Consumer Care, Diabetes
Care, Diagnostics and Pharmaceuticals. The company’s Animal Health and Consumer Care divisions
and its diagnostic systems hold leading positions on the
world market.
Bayer
HealthCare
2004
2005
+/-
EUR million
%
Net external sales
8,058
9,429
+17.0
Operating result [EBIT]
956
1,102
+15.3
Gross cash flow
943
1,138
+20.7
Net cash flow
1,053
1,351
+28.3
Capital expenditures
301
330
+9.6
Operating
Result [EBIT]
2005
EUR million
A focus of research: the canola
plant
Bayer CropScience is
a global leader in crop protection and non-agricultural pest
control. This company, with its highly effective products,
pioneering innovations and keen customer focus, is aiming
for further growth in the future. It is organized in three
business groups – Crop Protection, Environmental Science
and BioScience. Bayer CropScience markets a balanced range
of crop protection products and is among the leading suppliers
of insecticides, fungicides, herbicides and seed treatments.
It has a strong presence in all regions of the world.
Bayer
CropScience
2004
2005
+/-
EUR million
%
Net external sales
5,946
5,896
-0.8
Operating result [EBIT]
492
690
+40.2
Gross cash flow
893
964
+8.0
Net cash flow
778
904
+16.2
Capital expenditures
209
201
-3.8
Operating
Result [EBIT]
2005
EUR million
Innovation in automotive
engineering: the Makrolon® sunroof
Bayer MaterialScience is
a renowned supplier of high-performance materials and innovative
system solutions used in a wide range of products for everyday
life. Products with leading positions on the world market
account for a major share of sales. Principal customers are
the automotive and construction industries, the electrical/electronics
sector and manufacturers of sports and leisure articles,
packaging and medical equipment. Operations comprise five
business units: Coatings, Adhesives and Sealants; Polycarbonates;
Polyurethanes; Thermoplastic Polyurethanes and Inorganic
Basic Chemicals, along with two independent companies, H.C.
Starck and Wolff Walsrode.
Bayer
MaterialScience
2004
2005
+/-
EUR million
%
Net external sales
8,597
10,695
+24.4
Operating result [EBIT]
641
1,369
+113.6
Gross cash flow
884
1,402
+58.6
Net cash flow
498
1,388
+178.7
Capital expenditures
332
715
+115.4
Operating
Result [EBIT]
2005
EUR million
Bayer Business Services is
the Bayer Group’s international competence center for
IT-based services. The company’s objective is to contribute
lastingly to its customers’ value creation with high-performance
solutions and new ideas. Its product offering is focused
on four core areas: IT and telecommunications; procurement
and logistics; human resources and executive personnel services;
and finance and accounting. The service spectrum ranges from
consultancy through the development and implementation of
system solutions to the handling of entire business processes.
For industry and public-sector customers, Bayer Business
Services positions itself as a business process outsourcing
partner; for Bayer, as a shared service center.
Bayer
Technology Services, the technological backbone of the
Bayer Group, is engaged in process development and in process
and plant engineering, construction and optimization. This
company also develops innovative technology platforms that
contribute substantially to the efficiency of Bayer’s
operating units. Bayer Technology Services offers integrated
solutions throughout the life cycle of facilities, processes
and products.
Bayer Industry Services is
the operator of Germany’s largest
chemical park, with sites at Leverkusen, Dormagen and Krefeld-Uerdingen.
The company provides the foundation for the smooth operation
of facilities at these sites, offering a customized service
portfolio ranging from technology through environmental protection,
waste management, utility supply, analytics, infrastructure,
safety and security to vocational training and continuing
education courses. Bayer Industry Services also markets fully
developed land and buildings to companies interested in setting
up operations within the chemical park.
![Bayer HealthCare - Operating Result [EBIT]](images/konzernstruktur_chart_bhc.gif)
![Bayer CropScience - Operating Result [EBIT]](images/konzernstruktur_chart_bcs.gif)
![Bayer MaterialScience - Operating Result [EBIT]](images/konzernstruktur_chart_bms.gif)
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