Management Report

9. Growth and Innovation

Our expenses for research and development rose by 13.6% (Fx adj.) in the first half of 2015 to €1,982 million (h1 2014: €1,653 million), including €1,036 million (Fx adj. +16.2%) in the second quarter (q2 2014: €841 million). Capital expenditures for property, plant and equipment and intangible assets in the first half of 2015 amounted to €945 million (h1 2014: €883 million), including €600 million in the second quarter (q2 2014: €526 million).

Research and Dvelopment Expenses in the First Half of 2015
Capital Expenditures in the First Half of 2015

The Emerging Markets once again accounted for a disproportionate share of currency-adjusted sales growth in the first half of 2015. For reporting purposes we have defined the Emerging Markets as Asia (excluding Japan), Latin America, Eastern Europe, Africa and the Middle East.

Sales in the Emerging Markets advanced by 9.6% (Fx adj.) to €8,388 million in the first half of 2015 (h1 2014: €7,198 million), including €4,264 million in the second quarter (Fx adj. +8.0%; q2 2014: €3,695 million). All regions contributed to this development. The Emerging Markets’ share of total sales was unchanged compared with the prior-year period, at 35.0%. The respective figure for the second quarter of 2015 was 35.3% (q2 201436.1%).

Sales Development in the First Half of 2015
Last updated: July 29, 2015  Copyright © Bayer AG
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