15. Earnings; Asset and Financial Position of Bayer AG

Until the end of 2015, Bayer AG functioned solely as the management holding company for the Bayer Group. At the beginning of 2016, it assumed responsibility for the operations of its three divisions. As the parent company of the Bayer Group, Bayer AG – represented by its Board of Management – performs the principal management functions for the entire Group. These include strategic planning, resource allocation, executive management and financial management. The performance of Bayer AG is largely determined by the business performance of the Bayer Group.

The financial statements of Bayer AG are prepared in accordance with the German Commercial Code (HGB) and Stock Corporation Act (AktG).