6.1 Changes in the Scope of Consolidation

Changes in the scope of consolidation in 2015 were as follows:

Change in Number of Consolidated Companies

 

 

Germany

 

Other countries

 

Total

Bayer AG and consolidated companies

 

 

 

 

 

 

December 31, 2014

 

67

 

235

 

302

Changes in scope of consolidation

 

2

 

8

 

10

Additions

 

2

 

6

 

8

Retirements

 

(3)

 

(10)

 

(13)

December 31, 2015

 

68

 

239

 

307

The increase in the total number of consolidated companies in 2015 was primarily due to changes in the scope of consolidation and to acquisitions. Derecognitions were primarily due to mergers among Group companies.

Bayer Pearl Polyurethane Systems LLC, United Arab Emirates, is fully consolidated because the Bayer Group holds a majority of the voting rights.

Pure Salt Baytown LLC, United States, is fully consolidated as a structured entity. The Bayer Group guarantees the liabilities of Pure Salt Baytown LLC to banks. These liabilities, which are reflected in full in the consolidated statement of financial position, amounted to €17 million as of December 31, 2015 (2014: €20 million).

The above table includes one joint operation, LyondellBasell Covestro Manufacturing Maasvlakte V.O.F., Netherlands, as of December 31, 2015, and December 31, 2014. Pursuant to IFRS 11, Bayer’s share of this company’s assets, liabilities, revenues and expenses are included in the consolidated financial statements in accordance with Bayer’s rights and obligations. The main purpose of LyondellBasell Covestro Manufacturing Maasvlakte V.O.F. is the joint production of propylene oxide (PO) for Bayer and its partner Lyondell.

In conjunction with the acquisition of the consumer care business of Merck & Co., Inc., United States, Bayer entered into a strategic collaboration with that company. This collaboration is included in the consolidated financial statements as a joint operation. Bayer and Merck & Co., Inc., have mutually agreed to collaborate on the development, production, life-cycle management and marketing of active ingredients and products in the field of soluble guanylate cyclase (sGC) modulation.

Four (2014: three) associates and three (2014: three) joint ventures were accounted for in the consolidated financial statements using the equity method. Details of these companies are given in Note [19].

Flagship Ventures V Agricultural Fund, L.P., United States, was included in the consolidated financial statements for the first time in 2015 and classified as an associate. Bayer has no control over this associate despite owning 99.9% of the capital, but is able to significantly influence its financial and operating policy decisions.

Nanjing Baijingyu Pharmaceutical Co., Ltd., China, was classified as an associate in view of Bayer’s representation on its executive committee and supervisory board. This enables Bayer to significantly influence its financial and operating policy decisions despite owning only 15% of its voting rights and capital.

A total of 71 (2014: 78) subsidiaries, including one (2014: one) structured entity and 12 (2014: 12) associates or joint ventures that in aggregate are immaterial to the Bayer Group’s financial position and results of operations are not consolidated but recognized at cost. The immaterial subsidiaries accounted for less than 0.2% of Group sales, less than 0.3% of equity and less than 0.2% of total assets.

Details of subsidiary and affiliated companies pursuant to Section 313 of the German Commercial Code can be accessed at www.annualreport2015.bayer.com/companylist.pdf

The following domestic subsidiaries availed themselves in 2015 of certain exemptions granted under Section 264, Paragraph 3, and Section 264B of the German Commercial Code regarding the publication of legal-entity financial statements:

German Exempt Subsidiaries

Company Name

 

Place of Business

 

Bayer’s interest

 

 

 

 

%

Adverio Pharma GmbH

 

Schönefeld

 

100.0

AgrEvo Verwaltungsgesellschaft mbH

 

Frankfurt am Main

 

100.0

Alcafleu Management GmbH & Co. KG

 

Schönefeld

 

99.9

Bayer 04 Immobilien GmbH

 

Leverkusen

 

100.0

Bayer 04 Leverkusen Fußball GmbH

 

Leverkusen

 

100.0

Bayer Altersversorgung GmbH

 

Leverkusen

 

100.0

Bayer Animal Health GmbH

 

Leverkusen

 

100.0

Bayer Beteiligungsverwaltung Goslar GmbH

 

Leverkusen

 

100.0

Bayer Business Services GmbH

 

Leverkusen

 

100.0

Bayer Chemicals Aktiengesellschaft

 

Leverkusen

 

100.0

Bayer Consumer Care Deutschland GmbH

 

Berlin

 

100.0

Bayer CropScience Aktiengesellschaft

 

Monheim

 

100.0

Bayer CropScience Biologics GmbH

 

Wismar

 

100.0

Bayer CropScience Deutschland GmbH

 

Langenfeld

 

100.0

Bayer Direct Services GmbH

 

Leverkusen

 

100.0

Bayer Gastronomie GmbH

 

Leverkusen

 

100.0

Bayer Gesellschaft für Beteiligungen mbH

 

Leverkusen

 

100.0

Bayer HealthCare Aktiengesellschaft

 

Leverkusen

 

100.0

Bayer Innovation GmbH

 

Leverkusen

 

100.0

Bayer Intellectual Property GmbH

 

Monheim

 

100.0

Bayer Real Estate GmbH

 

Leverkusen

 

100.0

Bayer Schering Pharma AG

 

Berlin

 

100.0

Bayer Technology Services GmbH

 

Leverkusen

 

100.0

Bayer Vital GmbH

 

Leverkusen

 

100.0

Bayer Weimar GmbH und Co. KG

 

Weimar

 

100.0

Bayer-Handelsgesellschaft mit beschränkter Haftung

 

Leverkusen

 

100.0

BGI Deutschland GmbH

 

Leverkusen

 

100.0

Chemion Logistik GmbH

 

Leverkusen

 

100.0

Dritte Bayer Real Estate VV GmbH & Co. KG

 

Schönefeld

 

100.0

Erste Bayer Real Estate VV GmbH & Co. KG

 

Schönefeld

 

100.0

Erste K-W-A Beteiligungsgesellschaft mbH

 

Leverkusen

 

100.0

Euroservices Bayer GmbH

 

Leverkusen

 

100.0

Fünfte Bayer Real Estate VV GmbH & Co. KG

 

Schönefeld

 

100.0

Generics Holding GmbH

 

Leverkusen

 

100.0

GP Grenzach Produktions GmbH

 

Grenzach-Wyhlen

 

100.0

Hild Samen GmbH

 

Marbach am Neckar

 

100.0

Intendis GmbH

 

Berlin

 

100.0

Intraserv GmbH & Co. KG

 

Schönefeld

 

100.0

Jenapharm GmbH & Co. KG

 

Jena

 

100.0

KOSINUS Grundstücks-Verwaltungsgesellschaft mbH & Co. Gamma OHG

 

Schönefeld

 

100.0

KVP Pharma+Veterinär Produkte GmbH

 

Kiel

 

100.0

MENADIER Heilmittel GmbH

 

Berlin

 

100.0

Schering-Kahlbaum Gesellschaft mit beschränkter Haftung

 

Berlin

 

100.0

Sechste Bayer Real Estate VV GmbH & Co. KG

 

Schönefeld

 

100.0

Siebte Bayer VV GmbH

 

Leverkusen

 

100.0

Steigerwald Arzneimittelwerk GmbH

 

Darmstadt

 

100.0

TECTRION GmbH

 

Leverkusen

 

100.0

TravelBoard GmbH

 

Leverkusen

 

100.0

Vierte Bayer Real Estate VV GmbH & Co. KG

 

Schönefeld

 

100.0

Zweite Bayer Real Estate VV GmbH & Co. KG

 

Schönefeld

 

100.0

Zweite K-W-A Beteiligungsgesellschaft mbH

 

Leverkusen

 

100.0