Bayer AG - Stockholders' Newsletter First Quarter 2007

1 of 6

Financial Statements

Bayer Group Consolidated Statements of Income

	1st Quarter 2006	1st Quarter 2007
€ million
Net sales	6,791	8,335
Cost of goods sold	(3,438)	(4,134)
Gross profit	3,353	4,201

Selling expenses	(1,365)	(1,807)
Research and development expenses	(414)	(625)
General administration expenses	(353)	(436)
Other operating income	208	143
Other operating expenses	(380)	(301)
Operating result (EBIT)	1,049	1,175

Equity-method loss	(8)	(14)
Non-operating income	350	242
Non-operating expenses	(552)	(446)
Non-operating result	(210)	(218)

Income before income taxes	839	957

Income taxes	(277)	(301)

Income from continuing operations after taxes	562	656

Income from discontinued operations after taxes	35	2,154

Income after taxes	597	2,810
of which attributable to minority interest	(3)	1
of which attributable to Bayer AG stockholders (net income)	600	2,809

Earnings per share (€)
From continuing operations
Basic*	0.77	0.82
Diluted*	0.77	0.82
From continuing and discontinued operations
Basic*	0.82	3.44
Diluted*	0.82	3.44