1.6 Value Creation

Bayer creates sustainable value in various ways for its stakeholders at all stages of the value chain (Graphic “Value Chain Stages”) by focusing on innovative products and solutions in its core businesses. Moreover, we operate production sites throughout the world, invest in research and development, work with international and local suppliers and contribute to the economic development of our target markets. As an employer, we provide jobs in industrialized, emerging and developing economies and create purchasing power through the salaries we pay. We also support public infrastructure through the payment of taxes and other contributions.

Value Chain Stages

Value Chain Stages (graph)Value Chain Stages (graph)

The value added statement shows Bayer’s direct contribution to public and private incomes and is a measure of the direct financial value created for stakeholders by its business activities. We define value added as the company’s total operating performance in the previous fiscal year less the costs of procured and consumed goods and services, depreciation and amortization.

The total operating performance of the Bayer Group in 2015 was €47.8 billion. Value added amounted to €17.5 billion. Of the value added, €11.2 billion (64%) was distributed to employees, €2.1 billion (12%) to stockholders, €0.8 billion (4%) to lenders and €1.5 billion (9%) to governments. The remainder was allocated to reserves.

Bayer Group Value Added 2015

Bayer Group Value Added 2015 (pie chart)Bayer Group Value Added 2015 (pie chart)