Business Development by Segment Animal Health (XLS:) Download XLS Key Data – Animal Health Q1 2017 Q1 2018 Change1 € million € million Reported % Fx & p adj. % Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted 1 For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.” Sales 440 414 −5.9 +3.0 Change in sales1 Volume −0.3% +2.5% Price +3.2% +0.5% Currency +3.1% −8.9% Portfolio +1.8% 0.0% € million € million Reported % Fx adj. % Sales by region Europe / Middle East / Africa 144 136 −5.6 −4.2 North America 177 160 −9.6 +4.5 Asia / Pacific 76 77 +1.3 +11.8 Latin America 43 41 −4.7 +7.0 EBITDA1 135 139 +3.0 Special items1 – – EBITDA before special items1 135 139 +3.0 EBITDA margin before special items1 30.7% 33.6% EBIT1 126 129 +2.4 Special items1 – – EBIT before special items1 126 129 +2.4 Net cash provided by (used in) operating activities (31) 13 . First quarter of 2018 Sales Sales of Animal Health in the first quarter of 2018 increased by 3.0% (Fx & portfolio adj.) to €414 million. Growth was negatively impacted by amended financial reporting standards (IFRS 15), among other factors. The Asia / Pacific region developed very positively. We also expanded business in Latin and North America on a currency-adjusted basis, while sales receded in Europe / Middle East / Africa. (XLS:) Download XLS Best-Selling Animal Health Products Q1 2017 Q1 2018 Change1 € million € million Reported % Fx adj. % Fx adj. = currency-adjusted 1 For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.” Advantage™ product family 136 114 −16.2 −8.2 Seresto™ 76 88 +15.8 +24.8 Drontal™ product family 35 31 −11.4 −4.4 Baytril™ 27 25 −7.4 +2.9 Total 274 258 −5.8 +2.6 Proportion of Animal Health sales 62% 62% Sales by product Business with our Advantage™ line of flea, tick and worm control products decreased in the Europe / Middle East / Africa and North America regions due to seasonal shifts. Volumes in North America were also negatively impacted by increased competitive pressure and the related decline in demand. Growth in Asia / Pacific was not sufficient to offset this development. Business with our Seresto™ flea and tick collar once again clearly expanded in all regions. This development was mainly driven by higher demand in the United States and by price and volume increases in the Europe / Middle East / Africa region. We registered lower volumes of our Drontal™ line of dewormers in the Europe / Middle East / Africa region. In addition, demand in North America was below that of the strong prior-year quarter. There was a slight increase in sales of our Baytril™ antibiotic. Here we benefited from positive business development in the North America, Asia / Pacific and Latin America regions. Earnings EBITDA before special items of Animal Health increased by 3.0% to €139 million in the first quarter of 2018 (Q1 2017: €135 million). Adjusted for negative currency effects in the amount of €10 million, earnings were up by 10.4%. Positive contributions came from lower selling expenses, while the aforementioned effect of the first-time application of IFRS 15 had a negative impact on earnings. EBIT improved by 2.4% to €129 million. As in the prior-year quarter, it included no special items.