Bayer : Annual Financial Statements of Bayer CropScience AG 2022

Bayer CropScience Aktiengesellschaft

Monheim am Rhein

Financial statements for the period from

January 1 to December 31, 2022

This translation is provided for convenience only. The German version is the sole legally binding version.

Income Statement of

Bayer CropScience Aktiengesellschaft, Monheim am Rhein, for the Period from January 1, 2022 to December 31, 2022

	2021			2022
		€ thousand			€ thousand
Sales	751,239			672,728
				1.2
Other operating income		864,646		1,382,628
of which from currency translation		951			25,738
Personnel expenses		(25,847)			(72,424)
Wages and salaries		(14)			(4)
Social expenses and expenses for pensions and other benefits		(25,833)			(72,420)
of which pension expenses		(25,833)			(72,420)
Write-downs on intangible assets and property, plant and equipment		(99,359)			(120,691)
Other operating expenses		(233,979)		1	(378,113)
of which from currency translation	(55,311)			(4,222)
Operating result		1,256,700			1,484,128
Income from investments in affiliated companies		240,265			32,181
of which from subsidiaries		240,221			30,432
Expenses from assumption of losses of subsidiaries		(307)			(345)
Write-downs of investments in affiliated companies		(75,195)			(1,058,257)	3
Write-backs of investments in affiliated companies		670,882			0
Losses from the sale of investments in affiliated companies	(26,456)			0
Income (loss) from investments in affiliated companies		809,189			(1,026,421)
Other interest and similar income		6,512			15,817
of which from subsidiaries		6,510			15,709
of which from discounting		2			108
Interest and similar expenses		(207,754)		2	(155,392)
of which to subsidiaries		(172,349)			(119,796)
of which for the unwinding of discount	(35,360)			(32,668)
Net interest expense		(201,242)			(139,575)
Miscellaneous financial income		0			30
Miscellaneous financial expenses		(12,243)			(17,338)
of which to subsidiaries		(12,243)			(17,338)
Miscellaneous financial expenses	(12,243)			(17,308)
Financial result	595,704			(1,183,304)
Income taxes		(93,327)			(413,823)
Other taxes	(223)			(3)
Income after taxes		1,758,854			(113,002)
Income from loss transfer		0			113,002
Net income	1,758,854			0
Profit carried forward from previous year		0			1,758,854
Allocation to other retained earnings		0			1,758,854
Distributable profit	1,758,854			0

1. In 2022, write-downs arising from investment grants were reclassified from "other operating expenses" to "other operating income". The prior-year figure of €65,000 was adjusted accordingly.
2. The reversal of provisions for interest amounting to €6,852,000 was recorded under interest and similar expenses in the financial statements for 2021. This item is posted under other operating income following an adjustment.
3. Due to an incorrect allocation of value contributions in 2021, a correction was made to investments in subsidiaries for 2022. As a result, the write-downs of investments in affiliated companies are €1,045 million too high in 2022 and the write-backs of investments in affiliated companies are €228 million too low.

Statement of Financial Position of

Bayer CropScience Aktiengesellschaft, Monheim am Rhein,

as of December 31, 2022

	31.12.2021		31.12.2022
			€ thousand		€ thousand
ASSETS
Noncurrent assets
Intangible assets
Acquired concessions, industrial property rights, similar rights and assets,
and licenses thereunder		91,129		26,455
Goodwill		39,812		0
Advance payments		547		1,004
0	131,488		27,459
Property, plant and equipment
Land and buildings			82,012		88,364
Plant installations and machinery		381,590		380,805
Furniture, fixtures and other equipment		30,258		31,490
Construction in progress and advance payments	70,536		74,560
			564,396		575,219
Financial assets		12,236,994		12,043,196
Investments in subsidiaries1		12,198,321		12,067,733
Loans to subsidiaries		36,750		37,382
Investments in affiliated companies		1,923		1,923
		12,236,994		12,107,038
Total assets	12,932,878		12,709,716
Current assets
Receivables and other assets
Trade accounts receivable		201,425		40,756
of which from subsidiaries		200,274		39,967
Receivables from subsidiaries		1,259,689		2,271,725
Other assets		60,104		23,984
Receivables and other assets	1,521,218		2,336,465
Cash and cash equivalents	4		3
Total current assets			1,521,222		2,336,468
Surplus from offsetting	1,570		479
TOTAL assets			14,455,670		15,046,663

Statement of Financial Position of

Bayer CropScience Aktiengesellschaft, Monheim am Rhein,

as of December 31, 2022

	31.12.2021		31.12.2022
		€ thousand		€ thousand
EQUITY AND LIABILITIES
Equity
Capital stock		1,000		1,000
Capital reserves	2,612,344		2,612,344
Retained earnings
Other retained earnings		3,887,923		5,646,776
Distributable profit	1,758,854		0
Total equity		8,260,121		8,260,120
Provisions
Provisions for pensions		439,120		515,700
Tax provisions		41,110		294,253
Other provisions		152,696		155,272
Total provisions	632,926		965,225
Liabilities
Liabilities to banks		0		3
of which due in < 1 year		0		3
Trade accounts payable		59,230		324,723
of which to subsidiaries		59,100		324,599
of which due in < 1 year		59,230		324,723
Payables to subsidiaries		5,502,906		5,496,407
of which due in < 1 year		78,695		72,196
of which due in > 1 year		5,424,211		5,424,211
Other liabilities		329		92
of which from taxes		329		92
of which due in < 1 year		329		92
Total liabilities	5,562,465		5,821,225
Deferred income and accrued expense		158		93
TOTAL equity and liabilities	14,455,670		15,046,663
Stated in accordance with Section 253, Paragraph 6 of the German
Commercial Code (HGB)
Difference between the pension obligations recognized in the statement of
financial position based on the average interest rate for ten and seven years	34,767		25,587

Bayer CropScience Aktiengesellschaft is a wholly owned subsidiary of Bayer Aktiengesellschaft, Leverkusen, and as such consolidated in the latter's consolidated financial statements, and therefore exempt from preparing its own consolidated financial statements and consolidated management report. The exempting consolidated financial statements are prepared in accordance with IFRS as adopted by the European Union, so that no accounting, valuation and consolidation methods deviating from German law are applied in these financial statements.

Monheim am Rhein, February 17, 2023

Dr. Dirk Backhaus

Dr. Martin Schloemer

Dr. Jörg Thomaier

Bayer CropScience Aktiengesellschaft, HRB 46985, Amtsgericht Düsseldorf