Report on Future Perspectives and on Opportunities and Risks

Opportunities and Risks

As a global enterprise with a diversified portfolio, the Bayer Group is exposed to a wide range of internal or external developments or events that could significantly impact the achievement of our financial and nonfinancial objectives.

Bayer regards opportunity and risk management as an integral part of corporate governance. Our risk management process and the opportunities / risks are outlined in detail in the Annual Report 2016 (Combined Management Report, Chapter “Opportunity and Risk Report”). For risks related to the acquisition of Monsanto Company, United States, we refer specifically to Chapter “Planned Acquisition of Monsanto.”

With the 24.6% interest in Covestro AG and Bayer’s de facto loss of control over Covestro, the latter is no longer a reportable segment in the Bayer Group, and its operative risks are therefore no longer part of the Bayer risk profile. In connection with Covestro, we are exposed to financial risks from the development of the Covestro share price as well as from future dividend payments.

There have been no other material changes to Bayer’s overall risk profile.

No risks have been identified that could endanger the Bayer Group’s continued existence. There are also no risks with mutually reinforcing dependencies that could combine to endanger the Group’s continued existence.

Significant developments that have occurred in respect of the legal risks since publication of the Bayer Annual Report 2016 (Note “Legal Risks” to the Consolidated Financial Statements) are described in the Notes to the Condensed Consolidated Interim Financial Statements under “Legal Risks.”