Bayer CropScience AG a new company, but nevertheless with extensive experience in the field of crop protection. Bayer CropScience is a merger of the relevant business groups of Bayer AG with the crop protection business of Aventis. The result is a company that offers probably the most comprehensive crop protection portfolio in the world. It holds top market positions in all its core business areas and has now created two new divisions: BioScience and Environmental Science. A clear signal for expanded activities, greater responsibilities but in particular for an integrated approach to and better understanding of the tasks of Bayer CropScience. True competence means more than concentrating on the successes of the present; it means taking on the challenges of the future.

Bayer CropScience has divided its activities into three independent divisions. This structure has been chosen for operational and business reasons. And it ensures a clear structure in the organization and in relation to customers.

Crop Protection
Solutions for the protection of crops. This encompasses protection from pests, weeds and diseases as well as prophylactic treatment of seeds.

Environmental Science
This business group serves a mosaic of different customers. It is divided into the non-agricultural professional markets and the consumer business.

Expertise leading to new solutions through the advances in biotechnology, seed breeding and the development of hybrids. All this with the primary goal of improving the quality of crops
and thus increasing yields.


Closing of Aventis CropScience acquisition  Bayer CropScience ready for launch
  Among the top companies in the world market / Forecasted growth above the industry average

The new Bayer CropScience subgroup, formed through the merger of Bayer's Crop Protection Business Group with Aventis CropScience SA, will begin operating on June 4, 2002. The industry's new number two company is thus being given the green light following a thorough examination by the antitrust authorities. The European Commission approved the acquisition in April, and the United States Federal Trade Commission (FTC) gave the go-ahead on May 30. Closing of the EUR 7.25 billion deal on June 3 marks the biggest acquisition in Bayer's history.

"We are pleased to have accomplished this major acquisition in just half a year. Bayer CropScience will be one of the pillars of the reorganized Bayer Group," commented Bayer Management Board Chairman Werner Wenning. "We will be able to capitalize on our strengths as a leading company in crop protection, the seed business and biotechnology, as well as in non-agricultural pest control. We are counting on the considerable innovative power of the new company, which we intend to safeguard through suitably high research and development budgets."

Despite the conditions imposed by the antitrust authorities, which will mean divesting or outlicensing a sales volume of between EUR 650 million and EUR 700 million, Bayer CropScience is one of the industry's top companies, with approximately 22,000 employees and sales of roughly EUR 6.5 billion.

Bayer CropScience is divided into five functions, and its operations are steered via five market regions
Europe, NAFTA, Cono Sur *, Northeast Asia and International. The classic crop protection business is complemented by two autonomous business groups: Environmental Science (which includes professional pest control) and BioScience, both headquartered in Lyon, France.

"We want to be more than just the sum of the combined businesses. That's why we have set ourselves the target of growing at about 4 percent a year, considerably faster than the total market. That way we would increase annual sales to more than EUR 7 billion within the next three to four years," explained Dr. Jochen Wulff, Chairman of the Board of Management of Bayer CropScience. "We have had to reduce our sales forecast compared to our original plan because we have to meet the conditions set by the E.U. Commission and the FTC. But we are holding on to our strategic goal of achieving a 20 percent return on sales by 2006," Wulff added.

An advantage the new company has in the competitive environment is its balanced range of high-performance products covering the entire market spectrum: Bayer CropScience holds excellent positions both in the classic agriculture business
including insecticides (number 1), herbicides (number 3) and fungicides (number 2) and in terms of regional presence. Then there are its two additional business groups: Environmental Science, which combines professional pest control with the home and garden business, and BioScience, which comprises the seed and biotechnology businesses.

"With our broad regional base and extensive technical expertise, we can capitalize on all market opportunities and be a partner of choice for customers. We now have the best perspectives for success in an industry that is already at an advanced stage of consolidation," Wulff pointed out. With subsidiaries or representations in 122 countries, Bayer CropScience operates close to the trade and to end users. This is a key competitive factor, since close contact between manufacturers and customers brings maximum benefit. That's why Bayer CropScience has chosen the launch slogan "Your Partner for Growth."

In the run-up to today's closing
the legal transfer of Aventis CropScience SA to Bayer 23 mixed teams of experts and numerous subteams have developed the structures for the new company. The first decisions regarding corporate locations have been made, and the managerial staff have been selected with the aid of external consultants. One-time integration charges are expected to total EUR 500 million, while Bayer is aiming for an annual saving through synergies of about the same amount, which it is hoped will be fully realized by 2005.

The top management of Bayer CropScience will introduce itself to the employees in a number of welcoming events taking place around the world - from the company's Monheim, Germany base through the European headquarters in Lyon, France and the site in Frankfurt, Germany to the United States, Japan and Brazil. At these meetings, the management team consisting of Management Board Chairman Dr. Jochen Wulff and Board members Dr. Bernward Garthoff (Technology), Dr. Esmail Zirakparvar (Business Operations) and Willy Scherf (Administration) will also answer questions concerning the ongoing integration process that will continue to be a focus of the new company. Also a high priority are efficient communication with, and continuing support for, the new company's customers, for in the future Bayer CropScience will offer a considerably broader product range and enhanced problem solutions thanks to its increased wealth of expertise.

*Cono Sur=南米南部(直訳すると South cone)
メルコスール(MERCOSUR; Mercado Comun del
Cono Sur 南米南部共同市場):ブラジル、アルゼンチン、ウルグアイ、パラグアイの4ヶ国からなる、財、サービス、労働の域内自由市場の創設を目指したもの。1991年に調印されたアスンシオン条約で創設を決め、1995年1月1日にGDP総計7,000億ドル、人口2億人の共同市場が発足した。



Bayer CropScience Intends to Overtake Syngenta

Bayer CropScience says it intends to overtake Syngenta to become the leading agchems producer by 2006. "We are the market leader in conventional crop protection, which includes fungicides, herbicides, insecticides, and seed treatment, but we want to be number one in the overall agchems segment," says Bayer CropScience CEO Jochen Wulff. That will be achieved through the company's product pipeline, as well as cost cutting and bolt-on acquisitions, Wulff says. It is not interested in further large acquisitions following last year's purchase of Aventis CropScience, however, he says. Bayer CropScience has agchem sales of E5 billion ($5.5 billion), giving it a 20% market share. It to launch 14 active ingredients by 2005, says board member Esmail Zirakparvar. Sales from those compounds are expected to exceed E800 million/year by 2006, he says. The company also aims to raise its earnings before interest, taxes, depreciation and amortization margin from 13.1%, to of 29% by 2006, Wulff says.