Bayer Cropscience Limited analyst Q&A

− Sir, this is Prashant from Elara Securities. − Vinit sir, the margin guidance that you have given of 100 bps, what is the base year for it and is it 100 bps every year improvement or any particular point-to- point?

− Thanks, Prashant. − The base year would be ‘24-25. − Can you hear me? Is the mic working? Yeah, thanks. − So, the base year is ‘24-25.

− And it is improvement every year 100 bps or?

− At least we are very confident to start with, the first two to three years we should be able to see this. As I said, a lot depends on the margins. Simon also alluded to the fact that there are wheels in motion where we want to further improve that with sourcing strategies. So, one or two years we have high level of visibility, we have relatively we have noted down to the lowest details. The last outer two to three years would depend on what goes into the first three years. − Simon, do you want to add anything on this?

− Yeah, I mean, margins don't grow into the sky, they are a bit like trees. So, I think to be fair, it will start tapering off. The bigger steps are to be taken now. And then, yes, the more we are able, and Vinit gave the time frame, two to three years to also change supply. − We can have always two options, right, or three literally. One is we take whatever advantage in the cost of goods we get, provided external prices are the same, put them into bottom line. − The other is to drive growth, right. And I probably want to then pitch a little bit for the higher guidance, which is the double-digit top-line guidance, if I have more room in the cost of goods as well, right. So it is, in the end, in a country like India, growth is important. − I can only take so much OPEX out, and OPEX will inflate over time, and that means I need to have top- line growth, because otherwise I get what happened with the P&L which makes it shorter, right. So, take it as that. We've hit rock bottom in terms of margins. It is a clear focus to pull it up. You've got a guidance now, but do not expect that at one point we're at 50% EBIT margin. That's not going to happen in this type of business, and all of you know that.

− And, Simon, in earlier interactions, you have mentioned we may look for in licensing of molecules with Japanese players, be it from India perspective or globally. Any work on that front?

− Prashant, it's really a margin lens that I need to put on, and experience shows that much of the third-party licensing from abroad, especially if they don't have a local production here, it doesn't make that much sense to me. What we do is we have a lot of global arrangements where we will, if anything, start as a proprietary molecule and a mixture to come in. But we are developing mixtures with local companies here which might have Japanese backgrounds as well, and that's where we're going to be focusing o n when it makes sense from a larger perspective, and that's what we go into.

− Hi. This is Arjun from Kotak Mutual Funds. − Simon, aren't we kind of lowballing in terms of margins? If I look at FY24-25, we were at about 12.5%. If I look at FY23-24, essentially, we were close to 18-19%. So effectively, on a five-year period with a sharp top-line growth, we are essentially saying we would be sub those margins, what we already delivered in the past. So, what are we missing here?

− I mean, one thing which is not spoken about is obviously, especially in the time frame that you are mentioning, is a significant global shortage of glyphosate, right. And you saw the other segment on that slide, assume a lot of that is glyphosate. Now, gly phosate margins usually are rock-bottom. That time we shot up, yeah. So yes, if you now get a glyphosate glut and I got a super -pricing opportunity, that will be lowballing. What I'm trying to do here, or what Vinit is trying to do here, is give you something which you can hedge against, expect that to be baseline, yes. Obviously, if things go very different, you'll see differences. But I don't want to sit here and hope that a glyphosate spike will give us an upside.

− Just to understand, and thank you for the break -up in terms of corn seed, because earlier it was just speculated about, now we do have a sense of growth. Could you talk about these three elements which you gave us in terms of the pie division in terms of margins, which would be higher/lower going forward. We are anticipating doubling of the corn seed portfolio. So how does that play out in terms of margins improving or getting impacted going forward? One would assume seeds would be a higher margin business.

− Yeah, I mean, first of all, the advantage with corn seeds is I'm literally 100% backward integrated except maybe some licensing costs or so that will be there. So yes, very clearly the corn seed portfolio is more profitable. You always need to see how math ematics works though, right. Doubling of corn seeds still means it is then, I don't know, with a good growth of Cr op Protection portfolio - 20-25%, yes, it helps, but it doesn't solve the basic topic. So whatever corn does, it helps, and it does improve ma rgins. That's back to your where's your baseline. − If I come back next year and tell you corn seeds has doubled, yes, it's going to have a margin effect. Over a five-year period, it helps, but it doesn't change the overall view completely. − Just to add, it's important to understand that the incremental cost of production when we are trying to meet the demands of the, in this case if I may take the liberty of saying nation, because we see that the corn seeds are important in the plans of growt h of the nation, right. So, in order to do the incremental corn production after a certain time, because remember this is grown in. It is influenced by the same weather conditions as our in-sales are, right. So therefore, the incremental cost of production of corn also goes up significantly higher. Something which is not comparable directly with this chemicals business, because there the incremental cost depends on the capacities, and at this stage we don't see capacity limitation, right? Whereas with corn , the incremental cost will grow also faster. So, the margins don't sustain beyond a certain level.

− Sure. Just one final question, if I may. In terms of generic competition, so obviously that continues to grow in India, how would you characterize Bayer's defensive moat beyond the brand equity that we have built for the underperforming product lines, and you also talked about probably underperforming markets for us in terms of margins. So, how do you measure success for these decisions about exiting certain products, and in terms of certain markets you hinted that probably you'd look at a new go-to-market. We have seen a cycle of bad debts in the previous cycle. So how do you see that go about? − I know these are a couple of questions, but given that this was the last question, I thought I'd roll them in together. Thank you.

− Yeah, I mean it's rather comprehensive, and there's a lot of things which come together. It's very much linked also to what I said to the go-to-market and the complexity with it, right. I mean yes, brand equity is something that Bayer has, but we have a lot of also domain equity, right. − If you go through Delhi circles, you speak with regulators, etc., Bayer has a huge recognition, right. And that is something which we will sustain by also ensuring that our portfolio leads sustainably, right. And that's the argumentation, for example, when you look at DSR. − The other thing is when I do portfolio optimization, I obviously try to migrate to something which has a better competitive position, and part of the story is the new compounds, right. The beauty of a sales team is they don't usually like to be idle. So, when I take a product away or I divest it, they cry like crazy. Their life is over, but you know what - when I come with something which halfway fits that geographic area, it might not be exactly the same farmer or so, they're going to go after it, and that 's what we're seeing right now, big launches. Being very, very clear about our agronomic positioning and doing a launch big, as I said with BICOTA, for example, that's where we can really come back into segments where maybe we've lost it, right. But we're also looking at things which personally I'm not 100% convinced in yet, but which could be good, like soybean herbicides, right. So, segments where we're absolutely not in right now, but where we have a line of sight that will have a portfolio which will allow us also to compete.

− Okay. Just to do justice to the online advance questions, we'll take a few of them, again, come back to the live questions. − So, the next question is for Vinit from Darshita Shah. What is the revenue contribution from product launched over the past three years? Has this contribution increased during the last three years, and do any of these new products rank among our top ten products? − So, thanks, Darshita. Let me answer the third question, it's easy, yes. Council Activ which was launched in FY 2022-23, probably now is in our top two, if not in top three products, right, maybe in top two. − Almost one-sixth of our last year's sales from CP would be from these products which were launched in the last three years.

− The next question, again, for Vinit, in first half of FY26, did we take any price hikes in Dekalb products, and if yes, then how much?

− That's again an easy one, Thank you Sunil, for giving me an easy one. − Yes, we did take a price increase, I mentioned it already, that we had a nearly double-digit increase for sales and for corn driven by both price and volume. We had macroeconomic factors favorable, as well as, as Simon explained, a strong execution efficie ncy getting the new hybrid, which is really important in this business, but the main reasons for us being able to take price hike.

− Okay, Simon, the next one is for you, and a favorite question of lots of investors. − New product pipeline. Kindly provide details on new product launches expected over the next couple of years. Specifically, would like to understand the flow of proprietary products from the parent that have been introduced in India in the last few years, and whether any additional launches are planned in the next year. This is from B&K Securities, Rohit Nagaraj.

− Yes, I mean, I had it on the slide, so I'm not going to repeat it, but things that really excite us right now is BICOTA and Camalus. − We have actually also in the longer pipeline two very new compounds, Xivana Smart coming in, which we expect in the fruit and vegetable segment really to be very, very competitive in the country. And we're also launching what is called a global blockbuster, Plenexos, in the next couple of years, which is an insecticide, a completely new one, which in a country like India, which probably is the second biggest insecticide market in the world, is going to be important. It's going to be very important. − This is where we're in the preparation phase, and again, I don't want to be sitting here and telling you something in four years, but it is not just these seven or eight products that were behind me, which are literally hitting the ground now, and some of them we're really excited already. I think Xivana might be coming beginning of next year, depending a little bit on whether the, what is it, CBIRC, or I always forget what they're exactly called, comes through with MRLs before the season, right. But that's definitely online, and as I say, this is really something where we are seeing innovation, and I cannot quote the number of new hybrids which are also coming through. The big one we're all waiting for is Bihar, that's clearly understood, although even there we're seeing a reasonably good development right now during the season.

− Thanks, Simon. One last question for Simon before we again go back to the live questions. − Global Bayer leadership has been active in reducing management layers and redesigning the organization. What changes have been noticed in BCSL, and what more can be expected in future?

− Yeah, I think it was in another one of the questions also regarding the one-time costs. We've reduced, on the basis of this program, dynamic shared ownership from literally 24 months ago, where really the impact was last year, with also quite significant one-time costs being booked. This year, the go-to-market change in the East is somewhat related, but wasn't driven by this drive, right. So, the DSO drive, taking out layers, we've reduced management levels within the organization. It's really something we were early on, we did it last year, that's under the belt, and you can see it in the OPEX development already. − The go-to-market change in the East this year, which again, I say is big, actually the one -time costs you don't even see in comparison, because we took the big ones last year, right. There was some involved, but that's not any longer the target. − Do I look at efficiencies when they come through the system? Are we still looking at, are we optimized go-to-market everywhere? May I also invest a little bit in certain areas again? Definitely. But it's more portfolio management than radical changes.

− The question was from Saurabh Jain from HSBC Security. − Now over to you.

− This is Ahmed from Unifi Capital. − So, the question was regarding, you spoke about in India for India, right. So, considering significant sourcing of assets from the parent entity, we obviously have a structural higher cost. And so, in this sort of a scenario, are we effectively paying a gl obal sourcing premium compared to our competitors which rely on Indian and Chinese supply chain? How are we thinking about considering the entire supply chain architecture and sort of making sure that we don't have a cost competitiveness issue?

− It's a moving target, yeah. Very clearly, the industry is changing a bit. In the past, the proprietor, if I may say so, so the person that invented the compound, usually had such benefits of scale that they were able to compete also in an off-patent environment. And it didn't matter whether you were in a high-personnel cost environment, which probably most of these people were because of automation. But when now we have a situation where extremely high energy costs and extremely high environmental costs due to regulation come in, these large do-it-for-everybody plants probably not competitive to more nimble plants, right. And that's an interesting thing if you look at it. If you look what China has done, China has very much replicated what we have done in the past. Very big plants, one line, we blow the stuff out cheap. − Interestingly enough, the Indian plants are much more flexible. They can move from one compound to the other. They can be switched over reasonably quickly, and they can make smaller batches. That's what's interesting in an environment where I cannot any longer register one compound in a large country and expect it to be registered around the world. It doesn't work like that anymore, right. − So, one thing is, yes, while still hanging on to certain big compounds coming from big plants in my legacy organization, I might have a cost disadvantage which I need to cycle through. But I think coming into a more nimble environment that we're looking at now, getting the opportunity also to switch my source, and again, here, CBIR …CIBRC, I don't get it to my head, I'm sorry, I'm not good with five-letter words. CBIRC, yeah, needs to help me as well, which means I need to do a source change, etc, and that just takes time.

− Follow-up will be what sort of steps we have already taken to improve on that in the last year or so?

− Look, we're not blind, right. So, this is a multi- year process. But there are certain aspects which play in. Bayer has registered quality standards which not always are met by some of our suppliers. So, we need to work with our suppliers to hit those quali ty standards. They're not necessary for regulatory approval, but they're necessary for our internal quality standards. − When we say a formulation needs to whatever have stability, right, so there is more work than just calling somebody up and saying, hey, please can you supply me XYZ? And that is why the whole thing takes place, because I'm not going to do it compromising my quality, because we're back at, hey, if I'm Bayer, I have sustainab ility standards, I have expectations from customers. I don't want to deal with more complaints, because I've taken a decision which wasn't thought through, right. Sorry to say, yes, we're a bit slower, but hey, be sure that where in the past we put a sticker on “Made in Germany” for a reason, I will be proud to also put a sticker on “Made in India”, not just to make people happy, but to say this is Indian quality which I can also export, and they're in the little special column that you saw. − Obviously, it's also exports, which you could see from the publication pages, and that is something where the better I get here, maybe an opportunity lies also to support the rest of Asia.

− Sure, got it.

− For the benefit of all, I request some other questions from other participants. − Yeah, over to you first, and then you. − Participant: − Hi, clarification on the margin side. If we take last year FY25 EBITDA margin, adjusting your one -off cost, you had around 15% of EBITDA margin because you had some one-off cost, and in 1H26 also you have clocked around 16% margin. − Instead of giving guidance of 100 bps, can you tell us that, because there is some confusion on the base side as well. Give us the absolute number, what normalized margin was for you in FY25, adjusting those one-off, and what margin one should expect in next 1-2 years? − I'm sure you'll appreciate, I can't give the absolute number. − Give us at least the base adjusted margin, normalized margin, what was it in FY25? − Given that our seasonal nature, and we just actually spent a lot of time in it, and you all know that, right, it's very difficult to tell what is normalized margin. A lot of it goes into …. the nature of our business, you'll appreciate, is that we invest first. The costs are a little bit ahead in terms of our marketing campaigns and sales expenditure. So, sometimes in a short span of six months, it's difficult. − Your question if you're asking, is that what do we expect in the next six months or over the next years compared to one-time cost, right. One thing is for sure, what we refer to as one -time cost, or what you are referring to as one-time cost, is probably about the new operating model and the severance cost, which Simon alluded to, right. He also clarified that most of it is behind us , yeah. And then last year, FY24 -25, we had an, I may use the word unprecedented accounts receivable collection issues for a variety of reasons, right. That's not normal for our business, right. So, what we expect in going forward, that is from current year and future, both of this, if we use the word one-time, though I'm strictly speaking, receivable provision is not a one-time, right, because it's a nature of the business, right. We expect that to be significantly lower than the previous one. − Now, how much of that will impact our margin, whether it is 0.2 or 20 basis point/40 basis point, that will depend on various other factors, including the revenue percentage increase or change over the corresponding period. So, it's very difficult to give you a number. − Participant: − Again, just for the clarification, if ‘21 to ‘23 were abnormal period for us and for the industry as a whole, can we take pre-pandemic margin as a base and then expect improvement on that side? − Because until and unless we have base clarity in our heads, 100 bps guidance means I think we can't make out anything on that. So instead of, you know, give us some clarity in terms of from which base we should start thinking about that improvement.

− I mean, I'm not the CFO here, but I also don't want to split hair. − If you go pre-pandemic, you're actually in the phase of a post-merger. With all due respect, what I would say is let us close this year and take that as something you can carry forward, right. − We don't have a massive special effect coming in the next half year, and if that is so, we'll tell you, and that's probably a pretty good basis to see it's better than last year, I think that's what we can indicate already. And from that basis we will be building, as Vinit said, especially if we move to the higher top-line guidance, because the top line will have an effect on whether we can push it into the bottom line, right. And that's a non-financial answer to a very, very complicated question.

− I appreciate, but that was an indication that with that amount of revenue growth, that's what we expected to percolate down to that. So, the maths can be worked out, but as I said, you saw what happens between quarter one and quarter two, right. So, the more we indulge into every detailing, to be very honest, the possibility or the probability of that happening is not that high also, right. So, this is an indication that a sustained improvement in our profitability from the base year of ‘24-25 is our aspiration. − Just a clarification on the growth side, is that a volume growth guidance you're giving, or would that be a value growth?

− That's a combo. That's a combo, yeah. − Thanks.

− One more question from you, then I'll take a couple of, because we are already running behind, we are over time, but we'll try to answer a few critical ones.

− Sure, thank you. This is Abhijit from Kotak Securities. I'll try to keep it brief, just two from my side. − First is, with regard to the growth guidance, so the high single digits to low double digits, does that apply for fiscal ‘26 as well, given we've done 3% growth in the first half. Therefore, should we expect significantly better in the second half?

− No. I don't think that that is realistic to see. I mean, even looking forward to a good Rabi, and you might remember we had a very strong Q4 last year, a very strong spring, and how much we have under the belt already, I think that would be too much to ask . So, we're going to be looking to mid -single, hopefully, towards, but we're at 3% now, if I'm not mistaken. It would really take a blowout, and I'm not in a position to promise you that blowout.

− Fair enough, appreciate that. And the other one was on the margin side, a couple of specific numbers, and then one slightly, you know, conceptual question. Last year in fiscal 25, we saw a doubling of the grower payments to seed growers. It went up from 26 0 crores to 530 crores or something like that. We also saw a doubling of your purchases of goods from your parent, Bayer AG, went up very sharply. What were the reasons behind this? How should we expect this to trend? And, sorry, just one addendum there. W hen you mentioned this 100 basis point progression over the next 2 -3 years, should we assume that you're actually talking about a progression assuming, you know, no one-off items in the base? − In other words, the provisions for doubtful receivables, the severance payments, those are not counted in the base, and you're expecting 100 basis points of improvement on a normalized basis?

− Thanks, yeah. We just discussed this in the last one minute, right, that few months ago, after the quarter one, even into the quarter two, we were expecting to be a low double -digit growth for this year, after clocking 17% the first quarter, right, and here we are. So, I think that's the uncertainty of what we just discussed today. − All our projections are aspirational, and they assume normal. So, we are assuming normal what we are calling as one-time effects here. We are assuming a normal scenario, of course. − As to your question on the margin, I think we've shared the amount of details which we have at this stage, right. It's very difficult to break it down further, but maybe I'll try later on. Right now, it's difficult. I'll have a discussion with you to understand a little bit detail what you're expecting. But at the moment, we were able to share the following, just to summarize. − ‘24-25 was the first time we got hit with that increase in prices and inability to pass the transfer price, impacting our gross margin, right. − And second point was that we are seeing stabilization this year.

− Yeah, and to the grower payments, this is a little bit, Vinit was referring to it. There is competition on professional growers, but it gives you an indication on our margin, on our volume expectations as well. It's a good one to read what we expect of the next season. Part of the story, though, is also we sold out completely, right. So, some of it might also go into a bit of safety stock. Given weather conditions, it's not a very comfortable thing, and we're looking at it right now again. When you have a d elayed season and you come hand- to-mouth for the spring season. So, there is a bit of trying to mitigate frantic seed production close to the season. So, we will try to carry a bit more seed inventory going forward if that allows.

− Okay, I'll take a couple of online questions, since a lot of questions have been already answered in this interaction. And maybe one last question after that, before we close the session. − I've combined questions from Ms. Arpita from Millennium MAM and Ahmed Madha from Unifi Capital – about… India is planning to open its market to duty -free import of U.S. corn for ethanol. And what if the GMO corn imports are allowed in India from the USA? What implications does that create for the Company? And how do we handle the challenges?

− Yeah, I think I referred to it also during the opening a little bit. I mean, first of all, it's still speculation. It's not confirmed. It will make everybody look different at corn, but we are not an efficient country. So, if we were to import everything from the U.S. to a port in Gujarat, I think we'd have an issue feeding our chicken in Karnataka, right, let alone Odisha. So, let us be clear. There is going to be local corn production in the country. The bigger question is on policy. Will such a decision lead to a policy reconsideration as to - do we allow Indian farmers access to technology? And I have my opinion where I would hope this would go, and then yes, we would be looking at a different corn scenario again. Because traits definitely will be something which changes markets, and we need to look what would it do to an Indian market, because this would be probably the largest country to latest take such a decision, and it's a very special country. 1.4 billion farmers, obviously not all of them grow corn. We don't have a lot of countries where we've seen it, but we've seen pockets. We've seen how it happened in Philippines, for example, and we can learn from that. I think in another panel, I was very clear, India is late, but we're not too late , and we can learn from other countries and try to emulate while making sure that it works for India.

− One last question from online from Naushad from Aditya Birla. While we have talked about OPEX and measures taken and one-times. But, Vinit, how much scope do we have for rationalizing other expenses? − Thanks, Naushad. So, I think we spoke about input cost have increased significantly. On the operating cost, there are, at least we have managed to keep it lower. The growth of operating expenses is lower than the growth of revenue. This improvement is part ly driven by reduced employee cost, as you have seen, and when I mean employee cost, it's also inflation comparison, right, relatively, and reflecting the benefits of our new operating model. I think we already addressed that question about layers being taken out and a reasonably moderate salary cycle. So, we had to moderate our salary cycle this year as well as last year.

− Okay, one last question from the live before we close the session. Okay, over here. − Mr. Saurabh Jain – HSBC: − Can I ask a question? I have a mic in my hand. This is Saurabh Jain from HSBC. Yeah, sorry about that. − So, my question is, can you also talk a bit about how your supply chains of your raw material sourcing and technicals is kind of structured? Because what we understand, reading from the annual reports, you have a lot of purchases from the global parent, Bayer AG. But everything isn't getting manufactured in Europe, or there are more supply chain linkages coming to Asia, especially the entities in India and China. So, any numbers around that would also be useful to, you know, for us to make some mapping in t erms of how the supply chains for you are structured. That's my first question.

− Yeah, I mean, it's in a flow, and you know what, this is very, very sensitive information. If I were to tell you each compound, and I'd get calls from five companies tomorrow, they could do it cheaper for me or so. So just take it as such, right. You're ab solutely right. Right now, over-proportionally, we are linked to buying also, and this is not to be underestimated, from high currency or strong currency countries. This needs to change, and it will change over time. Not a hundred percent, never, because t here is still good reasons also to produce certain things abroad, and maybe even in high energy cost Europe, right. And you will have heard that also Europe is looking at industrial support. But it is very, very clear that also when you look into the futur e, be it carbon pricing, etc., probably barging low -value, high-volume stuff from the US over here is not going to be a good idea, right. So, there's going to be changes, and you're going to be seeing them. − Mr. Saurabh Jain – HSBC: − Numbers, you can share what percentage could be dependent on India sourcing or the other parts of Asia sourcing, say, for China. I mean, any ballpark estimates would also be useful for me.

− I mean, I would love to come more to a 50 -50 situation. Whether I can achieve that is a different discussion, right. Anything above that is probably also not realistic. But take it, please, as Simon shoots into the air. This is just to be friendly to you and give you a number. − Mr. Saurabh Jain – HSBC: − Sure, thank you. − This is really our CP portfolio. − Mr. Saurabh Jain – HSBC: − Yeah, I'm talking about the CP.

− So, can we ask the last question from you? − Yeah, so thank you for taking the question. This was regarding the cost of maize production, the increase that we have seen in the last one and a half odd years, that had a lot to do with maize prices going up. So, with the price fall that we have seen in maize, does that kind of result in cost of production for us going down now, especially when the maize prices are under MSPs? − And how do we see the margin profile in the corn seeds business? Before the merger, when we looked at Monsanto financials, the margins used to be anywhere close to 28 to 30 odd percent. Are we far away from that? Are we close to that? And when you mentione d that the cost of production for incremental corn seeds goes up, so how much impact does it have on our corn margins?

− Yeah, very, very detailed question. Thank you. − I mean, first of all, the commercial or the corn seed production is a very different topic than an MSP when it comes to what I need to pay. What is true is if MSPs go up, they do push the expectation of farmers as well. So, we contract always above MSP. So, when the MSP goes down, and I usually contract also half a year or whatever in advance, that doesn't necessarily help me that much. And let's be honest also, we don't move so far away from the MSP that that would make a huge difference, right. So, it is rather that there's a fundamental increase coming, also driven by the MSP increase, but primarily because more corn seeds need to be produced, and there's not that many professional corn seeds producers. And there are certain areas of the country where it makes most sense, and there are certain drying facilities, etc. − And when you look at the corn development that we've seen in the last couple of years, it's not just Bayer. It's generally in the country corn is coming up, and that means we're competing more for growers, right. So, this is a trend which per se is there, and that at the same time, when we have good MSPs, it is better for us on the pricing side, and that means I can make up for the increases in production costs more. So, we do not really expect corn margins to significantly go down. I think rather we are at a good space, right. − Now Monsanto was a very, very different setup than we were. They were reasonably clean. They did not have a sales force in areas where there was no corn seeds. They did about a third of the corn seeds that we do today. It's not difficult to have a profitable business if you're just focused on profitable parts of a country because it doesn't really make a lot of difference in your global footprint. So, I don't necessarily like to go back in that comparison. But as we said, corn seed growth will be over-proportionally profitable for us here, which means that corn seeds on average probably have a slightly higher margin than the CP portfolio and carry a lower cost to serve.

− Okay, thank you, Simon, and thank you, Vinit. − Ladies and gentlemen, on behalf of Bayer CropScience Limited, I extend my heartfelt gratitude to each one of you for joining us today in person. Your trust and support have been instrumental in our journey, and we deeply value your partnership. − As we conclude, let me leave you with this thought from Malcolm X – ‘The future belongs to those who prepare for it today’. At Bayer, we are preparing today to create sustainable growth and value for tomorrow. − Thank you once again for your time and engagement. We wish you continued success and well -being. With this, we formally conclude the Investor Meet 2025. − Please join us for high tea. Thank you. − END OF TRANSCRIPT