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 fundamental opportunity and risk status excluding the Monsanto acquisition are outlined in detail in the Annual Report 2017, Chapter “Opportunity and Risk Report.” Changes to the risk portfolio due to the acquisition of Monsanto are outlined in the Interim Report for the Second Quarter of 2018, Chapter “Opportunities and Risks.”

Overall assessment by the Board of Management

Compared with our commentary in the Annual Report 2017, we see no material changes in our risk situation, as we had anticipated an intensification of our risk situation as a result of the acquisition of Monsanto, which had been imminent at the time. We currently are not aware of any individual risks, risk combinations or risk interdependencies that could endanger the Bayer Group’s continued existence.

Significant developments that have occurred in respect of the legal risks since publication of the Bayer Annual Report 2017 (the Note “Legal Risks” to the Consolidated Financial Statements) are described in the Notes to the Condensed Consolidated Interim Financial Statements under “Legal Risks.” That section also contains Monsanto risks that appear material from the viewpoint of the Bayer Group.

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