June 10, 2015

Bayer to divest Diabetes Care business to Panasonic Healthcare Holdings Co., Ltd. for EUR 1,022 million

Transaction includes blood glucose monitoring systems and lancing devices for people with diabetes
Leverkusen, June 10, 2015 - Bayer AG has entered into a definitive agreement to
sell its Diabetes Care business to Panasonic Healthcare Holdings Co., Ltd., a
company which is backed by funds sponsored by leading global investment firm
KKR and the Panasonic Corporation. The total consideration for the transaction
is EUR 1,022 million (JPY 138 billion). The sale will include the leading
Contour™ portfolio of blood glucose monitoring meters and strips, as well as
other products such as Breeze™2, Elite™ and Microlet™ lancing devices. Closing
of the transaction is subject to customary conditions, including relevant
antitrust clearance, and is expected to occur in the first quarter of 2016.

"We are confident that the sale of our Diabetes Care business to our
long-standing partner Panasonic Healthcare, with the strong backing of KKR,
will support the long-term sustainability of this portfolio," said Werner
Baumann, member of the Board of Management of Bayer AG and CEO of Bayer
HealthCare.
"For more than 20 years, our companies have shared complementary goals. We
anticipate that this partnership will take our two great businesses to new
heights, and we wholly welcome the BDC team as full partners to Panasonic
Healthcare," said Kenji Yamane, President of Panasonic Healthcare and Panasonic
Healthcare Holdings Co., Ltd.

Johannes Huth, Member and Head of KKR Europe, Africa and Middle East, and Hiro
Hirano, Member and CEO of KKR Japan, said, "We are pleased that Bayer Diabetes
Care chose Panasonic Healthcare and KKR as the trusted partners for bringing
the business to its next stage of development. This is another milestone in
KKR's track record of partnering with leading German and Japanese corporates
and in growing top health care companies. Together, we will leverage our
experience and network to create a global diabetes care solutions powerhouse in
an effort to make this a transformational transaction for the diabetes care
industry."

Bayer's Diabetes Care business is a technological leader in blood glucose
monitoring systems, lancing devices and diabetes management software. The
business accounted for EUR 909 million in sales in 2014, with Contour™ being
the principal product portfolio. The Contour™ portfolio includes Contour™ Next,
Contour™ Plus, Contour™ and Contour™ TS and is designed to meet the needs of
all patients regardless of type of diabetes, stage of disease, or testing
frequency. Other products include Breeze™2, Brio™, Entrust™, Elite™ and
Microlet™ lancing devices.

Bayer: Science For A Better Life
Bayer is a global enterprise with core competencies in the fields of health
care, agriculture and high-tech polymer materials. As an innovation company, it
sets trends in research-intensive areas. Bayer's products and services are
designed to benefit people and improve their quality of life. At the same time,
the Group aims to create value through innovation, growth and high earning
power. Bayer is committed to the principles of sustainable development and to
its social and ethical responsibilities as a corporate citizen. In fiscal 2014,
the Group employed 118,900 people and had sales of EUR 42.2 billion. Capital
expenditures amounted to EUR 2.5 billion, R&D expenses to EUR 3.6 billion. For
more information, go to www.bayer.com.

About Bayer Diabetes Care

Global Head: Michael Kloss
Headquarters: Basel, Switzerland and Whippany, NJ (USA)
Business overview: Develops, manufactures and sells blood-glucose monitoring
systems
Sales (FY 2014): EUR 909 million
Sales region: 125 countries
Employees (April 2015): Approximately 1,500

About Panasonic Healthcare Holdings Co., Ltd.

Established in 2014, Panasonic Healthcare Holdings Co., Ltd. (shareholder
structure: KKR 80%; Panasonic Corporation 20%) is involved in developing,
manufacturing, selling and servicing medical equipment through its subsidiary
Panasonic Healthcare Co., Ltd. It seeks to strengthen its core businesses, In
Vitro Diagnostics including self?monitoring of blood glucose systems, its
Medicom businesses involved in medical IT businesses and its life sciences
based Biomedical business and to continue to pursue an important role in the
provision of optimal healthcare for all. For further information on Panasonic
Healthcare please visit http://www.panasonic-healthcare.com/global/phchd/

About KKR

KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure, real
estate, credit and hedge funds. KKR aims to generate attractive investment
returns by following a patient and disciplined investment approach, employing
world-class people, and driving growth and value creation at the asset level.
KKR invests its own capital alongside its partners' capital and brings
opportunities to others through its capital markets business. References to
KKR's investments may include the activities of its sponsored funds. For
additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR's
website at www.kkr.com.

Find more information at www.bayer.com.

Forward-looking statements

This release may contain forward-looking statements based on current
assumptions and forecasts made by Bayer Group or subgroup management. Various
known and unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. These factors
include those discussed in Bayer's public reports which are available on the
Bayer website at www.bayer.com. The company assumes no liability whatsoever to
update these forward-looking statements or to conform them to future events or
developments.