Management Report

Employees

On September 30, 2008, the Bayer Group had 108,600 employees, 2,400 more than on December 31, 2007. The rise in employee numbers was mainly due to our acquisitions and the expansion of our organizations in the BRIC countries (Brazil, Russia, India and China) and other growth markets. These increases were partly offset by workforce reductions in connection with the integration of Schering.

As of September 30, 2008, we employed 17,000 people in North America, including the 300 employees of the recently acquired U.S. company Possis Medical, Inc. Bayer had 20,700 employees in the Asia-Pacific region; this figure for the first time includes the 600 employees who joined the Group upon the acquisition of Topsun. There were 15,100 employees in Latin America/Africa/Middle East. The number of employees in Europe was 55,800. The 600 employees of Sagmel have been included here since the second quarter of 2008. In Germany we had 37,700 employees, accounting for 34.7 percent of the Group workforce.

The number of employees has been converted to full-time equivalents, which means part-time employees are included in proportion to their contractual working hours. Personnel expenses in the first three quarters of 2008 amounted to €5,739 million (9M 2007: €5,573).