Overview of Business Performance

Economic Environ­ment

World economy grows faster than in the previous year

The global economy grew at a faster pace in 2017 than in the previous year. In the United States, strong momentum resulted particularly from investment activity. In Europe, too, the pace of economic growth increased despite uncertainty concerning the form of the United Kingdom’s exit from the European Union. The growth rate of the Emerging Markets also picked up considerably. The Chinese economy maintained the high level of growth seen in the previous year.

Economic Environment

 

 

Growth1 2016

 

Growth1 2017

2016 figures restated

1

Real GDP growth, source: IHS Markit

2

Including about 50 countries defined by Global Insight as Emerging Markets in line with the World Bank

As of January 2018

World

 

+2.5%

 

+3.2%

European Union

 

+1.9%

 

+2.5%

of which Germany

 

+1.9%

 

+2.6%

United States

 

+1.5%

 

+2.2%

Emerging Markets2

 

+3.9%

 

+4.8%

Currency development

Negative currency effects diminished sales of the Bayer Group by €490 million (−1.4%) and EBITDA before special items by €195 million (−2.1%) in 2017. This currency effect negatively impacted the margin of our business by 0.2 percentage points.

Currency Development Bayer Group

 

 

2016

 

2017

 

Delta Fx effect on sales

 

Delta Fx
effect on
clean EBITDA

 

Of which
delta Fx
effect from hedging

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Source: Bloomberg, annual average closing rates

CAD

 

1.47

 

1.46

 

26

 

(3)

 

(21)

CNY

 

7.36

 

7.61

 

(84)

 

(42)

 

(13)

GBP

 

0.82

 

0.88

 

(74)

 

(53)

 

(15)

JPY

 

120.06

 

126.39

 

(119)

 

5

 

67

RUB

 

73.79

 

65.71

 

103

 

47

 

(29)

USD

 

1.11

 

1.13

 

(125)

 

26

 

41

All currencies

 

 

 

 

 

(490)

 

(195)

 

(11)

Compare to Last Year