Upcoming Benefits Changes for 2013

1. Upcoming Benefits Changes for 2013 Employee Meetings Play Video

3. Agenda Preview 2013 changes to benefits for: Active employees Retirees Understand what these changes mean to you Know where to go for more information *These benefit changes may not apply to collectively bargained employees page 3 Employee Benefits Meetings • 2012

4. Employee Health • Medical Plan Options

5. New Plan Option – Beginning 2013 New option is similar to the current Aetna Health & Savings Plan Applies to both active employees and non-Medicare eligible retirees Anthem BCBS Health & Savings Plan Anthem 90% PPO page 5 Employee Benefits Meetings • 2012

6. 2013 National Medical Plan OptionsAvailable to All U.S. Employees NEW Note: Regional plans are still available in some locations page 6 Employee Benefits Meetings • 2012

7. Reviewing Health & Savings Plans • Health & Savings Plans are high deductible health plans with an HSA option • Higher annual deductibles but lower employee contributions than a PPO Plan • HSA helps you pay for medical expenses today and save for the future Annual deductible Employee contributions page 7 Employee Benefits Meetings • 2012

8. Reviewing Health & Savings Plans (cont.) • How coverage works: Bayer Pays 100% Above the Out-of-Pocket Maximum You Pay 100% of the Cost (Medical and Prescription Drug) Until You Meet the Annual Deductible You Receive Preventive Care Coverage at No Cost You and Bayer Make Contributions to Your Health Savings Account To Access the Plan, You Pay Medical Plan Contributions page 8 Employee Benefits Meetings • 2012

9. Benefits of the HSA Helps you save and pay for qualified medical expenses now and in the future Your Contribution Your HSA Bayer’s Contribution • Both you and Bayer make contributions • Helps pay for your out-of-pocket health care expenses up to the deductible and out-of-pocket maximum: • Annual deductible • Coinsurance payments for medical and prescription drugs • Other qualified services, including vision and dental • Unused money in your HSA rolls over from year-to-year • Portable and yours to keep page 9 Employee Benefits Meetings • 2012

11. Tax Benefits How an HSA grows: Triple-tax Advantage Bayer’s Contribution + Your Pre-Tax Contribution Tax-free Investment Growth Tax-free Withdrawals for Qualified Medical Expenses page 11 Employee Benefits Meetings • 2012

12. Medical Expenses in Retirement You can save for future medical expenses, even in retirement In years you use less health care, you keep the funds in your HSA You can accumulate money that can be used for health care needs in retirement Healthy today More available health care dollars in retirement = page 12 Employee Benefits Meetings • 2012

13. National Plan Design Summary 1 For non-single coverage, the IRS requires that the full deductible/out-of-pocket maximum be met before expenses are paid for any individual page 13 Employee Benefits Meetings • 2012

14. National Plan Design Summary (cont.) page 14 Employee Benefits Meetings • 2012

15. National Plan Design Summary (cont.) 1For non-single coverage, the IRS requires that the full deductible/out-of-pocket maximum be met before expenses are paid for any individual page 15 Employee Benefits Meetings • 2012

16. Selecting Your Medical Plan Under each plan, you need to consider: Medical needs of you and your family Contributions from your pay check for your medical plan Out-of-pocket costs when you use health care Available opportunities to save for tomorrow Let’s take a minute to revisit Roger to see how he makes his choices and what we can learn from him Play Video page 16 Employee Benefits Meetings • 2012

18. Selecting Your Medical Plan You will have your own choices to make during annual enrollment Use the Medical Cost Comparison Tool at http://bayer.benefitcenter.comto explore your options and help you do the math page 18 Employee Benefits Meetings • 2012

19. Savings & Retirement Plan

20. Company Contributions • Company match • Based upon match formula • Employees must contribute to receive match • Immediate Vesting • Company retirement contribution • Equal to 5% of eligible compensation • Three-year vesting schedule based on your hire date • No employee contributions needed • Additional company retirement contribution • Variable contribution based upon age plus years of benefit service • Three-year vesting schedule based on your hire date • Must meet eligibility requirements to receive contribution page 20 Employee Benefits Meetings • 2012

21. Enhanced Match – Beginning January 1, 2013 Bayer will increase the company match to 5% if you contribute at least 7% of your eligible pay to the S&RP Enhanced match can help you meet your goals faster Review what you’re contributing Contact Vanguard online at www.vanguard.com or call 1-800-523-1188 at any time to change your contributions If you are not taking full advantage of the match, you’re leaving free money on the table *Bargaining unit employees may not be covered by this new company match page 21 Employee Benefits Meetings • 2012

22. “The biggest mistakes employees make are to miss out on the complete company matching contribution and to not withhold enough of their paycheck.” • “Maximize this benefit by taking full advantage of every dollar of matching contributions from your employer and increase your savings contribution percentage to the maximum allowable contribution over time.”    Source: Forbes.com, March 2012 page 22 Employee Benefits Meetings • 2012

23. Improved Company MatchEffective January 1, 2013 * Matching contributions are based upon eligible compensation during the pay period. page 23 Employee Benefits Meetings • 2012

24. S&RP Savings Impact *Assumes annual return of 8%. This example is hypothetical and does not reflect the return on any actual investment. page 24 Employee Benefits Meetings • 2012

25. S&RP Savings Impact (cont.) *Assumes annual return of 8%. This example is hypothetical and does not reflect the return on any actual investment. page 25 Employee Benefits Meetings • 2012

26. Retiree Medical

27. New Approach to Coverage Medical plan options will depend on Medicare eligibility, which is based on your age page 27 Employee Benefits Meetings • 2012

28. Paying for Retiree MedicalIf you were hired, integrated, or localized before 1/1/2005 • Bayer will help you pay for some of the cost by providing an annual company subsidy page 28 Employee Benefits Meetings • 2012

29. Calculating Your PointsIf you were hired, integrated, or localized before 1/1/2005 Total points (no rounding) Your age on your last day worked(years and months) Your Bayer U.S. continuous service after age 40 (years and months) page 29 Employee Benefits Meetings • 2012

30. Pre-65 Retiree Medical Costs If you were hired, integrated, or localized before 1/1/2005 • Total 2012 Annual Plan Cost 2012 Annual Company Subsidy for eligible retirees….. page 30 Employee Benefits Meetings • 2012

31. Subsidy for Medicare eligible retireesIf you were hired, integrated, or localized before 1/1/2005.. And within 5 years of retirement as of 12/31/2011 • Must be age 50 or older with at least five years of service as of December 31, 2011 • The following chart shows point values and 2013 subsidy amounts: • * Subsidy will increase each year based on the Consumer Price Index (CPI) to a maximum of 5% Employee Benefits Meetings • 2012 page 31

32. Subsidy for Medicare eligible retireesIf you were hired, integrated, or localized before 1/1/2005.. And you are NOT within 5 years of retirement as of 12/31/2011 • You are not age 50 and / or you do not have at least 5 years of service as of December 31, 2011 • Annual subsidy will be a flat-dollar amount and will not increase during retirement • Annual subsidy will be calculated as follows: • Your points X $25 page 32 Employee Benefits Meetings • 2012

33. Paying for Retiree MedicalIf you were hired, integrated, or localized on or after 1/1/2005 page 33 Employee Benefits Meetings • 2012

34. New Retiree Medical AccountIf you were hired, integrated, or localized on or after 1/1/2005 • Beginning January 1, 2013, a Retiree Medical Account (RMA) will be set up for you when you reach age 40 • Bayer will contribute $1,500 to your RMA for each year of continuous service after age 40 • If you retire from active employment with Bayer (age 55 with 10 years of continuous Bayer U.S. service after age 40) • RMA can be used to pay for retiree medical premiums or out-of-pocket expenses on a tax–free basis • If you terminate prior to retirement eligibility, the account is forfeited page 34 Employee Benefits Meetings • 2012

35. Retiree Life Insurance

36. Retiree Life Insurance Not available if you are more than five years away from retirement eligibility or hired after 1/1/2005 For example, if you are not age 50 or older with at least five years of service as of December 31, 2011, you are not eligible If you are within five years of retirement eligibility and hired before January 1, 2005, you will continue to be eligible for retiree life insurance $10,000 or $15,000 based on years of service after age 40 at retirement page 36 Employee Benefits Meetings • 2012

37. Watch for More Details • Annual enrollment materials will distribute early fall with detailed information on new plans page 37 Employee Benefits Meetings • 2012

38. New Resource • myBenefitEssentials Website • Provides the essentials for your Bayer benefits • You can find myBenefitEssentials through the Internet at http://mybenefitessentials.bayerweb.com • You can also access the site via the Intranet through the BayerNet homepage or HR//online page 38 Employee Benefits Meetings • 2012

39. Bayer Benefit Center

40. Questions? Please call HR//direct 1-888-473-1001 Thank you!

41. Let’s Hear from You • How do you like to receive benefits-related communication? • Posted online • Printed and mailed to home • Emailed • Employee meetings • Webex • Please complete the brief paper survey We want to make sure you get what you need, when you need it page 41 Employee Benefits Meetings • 2012