Financial Statements

Bayer Group Consolidated Statements of Income

	3rd Quarter 2007	3rd Quarter 2008	First Nine Months 2007	First Nine Months 2008
€ million
Net sales	7,793	7,948	24,345	24,995
Cost of goods sold	(3,978)	(4,076)	(12,184)	(12,435)
Gross profit	3,815	3,872	12,161	12,560

Selling expenses	(1,916)	(2,017)	(5,642)	(5,953)
Research and development expenses	(640)	(662)	(1,915)	(1,943)
General administration expenses	(418)	(417)	(1,279)	(1,275)
Other operating income	219	214	590	1,064
Other operating expenses	(383)	(306)	(1,146)	(1,321)
Operating result (EBIT)	677	684	2,769	3,132

Equity-method loss	(9)	(11)	(36)	(34)
Non-operating income	113	87	545	376
Non-operating expenses	(370)	(352)	(1,250)	(1,155)
Non-operating result	(266)	(276)	(741)	(813)

Income before income taxes	411	408	2,028	2,319

Income taxes	769	(133)	221	(701)

Income from continuing operations after taxes	1,180	275	2,249	1,618

Income from discontinued operations after taxes	(2)	3	2,396	3

Income after taxes	1,178	278	4,645	1,621
of which attributable to minority interest	3	1	1	8
of which attributable to Bayer AG stockholders (net income)	1,175	277	4,644	1,613

Earnings per share (€)
From continuing operations
Basic*	1.46	0.37	2.82	2.06
Diluted*	1.46	0.37	2.82	2.06

From discontinued operations
Basic*	-	-	2.91	-
Diluted*	-	-	2.91	-

From continuing and discontinued operations
Basic*	1.46	0.37	5.73	2.06
Diluted*	1.46	0.37	5.73	2.06

*The ordinary shares to be issued upon conversion of the mandatory convertible bond are treated as already issued shares.