Bayer Sustainable Development Report 2005 Sustainable Development Report

Sustainable Development Report 2005

This year’s Sustainable Development Report is also the first to depict the relevant information for Bayer AG in its new structure – without Lanxess AG. It continues our Group’s long tradition of environmental and sustainability reporting that began with the publishing of our first report with economic, social and environmental data in 1976.

Reporting objectives and method

Like our previous reports, the Sustainable Development Report 2005 is designed to give an insight into our commitment to sustainable development and is aimed primarily at stockholders, business partners, employees and the media. However, the publication also addresses non-governmental organizations, suppliers and authorities with whom we want to further intensify our dialogue on achieving a rational balance between economic, social and ecological considerations. The brochure is intended to demonstrate to the general public how we implement our commitment to the ten principles of the United Nations Global Compact. Through this publication we also comply with the OECD Guidelines for Multinational Enterprises, 2000 revision (“Disclosure”).

We have aligned ourselves to the guidelines of the Global Reporting Initiative (GRI) on sustainability reporting, and are actively involved in its further development. An index on the back inside cover lists the pages on which the Report provides information on the individual GRI indicators. The statements provided here apply to all sites and activities of the Bayer Group. Our environmental and safety data cover companies in which we have a share of more than 51 percent. A worldwide recording system is being established for some social performance indicators. This Report is published in German, English and Spanish. Our next Sustainable Development Report is due to be published in 2007.

Bayer Group Key Data

	2004	2005	Change
EUR million			%
Net sales	23,278	27,383	17.6
EBITDA¹	3,834	4,647	21.2
Operating result (EBIT)	1,875	2,812	50.0
Income before income taxes	1,222	2,199	80.0
Net income	685	1,597	133.1
Stockholders’ equity (total, i.e. including discontinued operations)	10,943	11,157	2.0
Total assets (total, i.e. including discontinued operations)	37,588	36,722	-2.3
Capital expenditures	977	1,388	42.1
Employees at year end²	91,700	93,700	2.2
Personnel expenses	6,026	5,912	-1.9
Research and development expenses	1,927	1,886	-2.1

¹ EBITA: Operating result (EBIT) plus depreciation and amortization
² A table indicating the distribution of employees according to region can be found here.