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BASF Agricultural Solutions Capital Market Story 2014 1 Titelmasterformat durch Klicken bearbeiten Markus Heldt President Crop Protection Division Credit Suisse Global Ag & Chemicals Conference London May 14, 2014 BASF Agricultural Solutions

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Page 1: Titelmasterformat durch Klicken BASF Agricultural ... · PDF fileBASF Agricultural 1Solutions Capital Market Story 2014 Titelmasterformat durch Klicken bearbeiten ... BASF analysis

BASF Agricultural Solutions Capital Market Story 2014 1

Titelmasterformat durch Klicken

bearbeiten

Markus Heldt President Crop

Protection Division

Credit Suisse

Global Ag &

Chemicals

Conference

London

May 14, 2014

BASF Agricultural Solutions

Page 2: Titelmasterformat durch Klicken BASF Agricultural ... · PDF fileBASF Agricultural 1Solutions Capital Market Story 2014 Titelmasterformat durch Klicken bearbeiten ... BASF analysis

Sales of > €500 million in 2020

Global R&D network

2014:New Biostacked launches and global

expansion in 2014

Broad product innovation on horizon

1 | Positioning & strategy

2 | Financial results & targets

3 | Growth levers:

3.1 | Portfolio development

3.2 | Growth markets

3.3 | Innovation & investments

4 | Summary & outlook

BASF Agricultural Solutions Capital Market Story 2014 2

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BASF Agricultural Solutions Capital Market Story 2014 3

1

2

3

4

5

6

7

8

9

1850 1890 1930 1970 2010 2050E

World population in billion

Mechanisation

Land & Irrigation

Fertilizers & Breeding

Crop Protection

Plant Biotechnology

Population growth drives crop demand,

triggering innovation in agriculture

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

2013

7.1bn*

* Source: FAO

Demand for agricultural products projected to grow further (food, feed, fuel). Innovations needed!

9bn*

2050E

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BASF Agricultural Solutions Capital Market Story 2014 4

Farmer expenses Crop protection represents only small share of overall costs

* Source: based on USDA data for US market 2013, includes total operating costs

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Page 5: Titelmasterformat durch Klicken BASF Agricultural ... · PDF fileBASF Agricultural 1Solutions Capital Market Story 2014 Titelmasterformat durch Klicken bearbeiten ... BASF analysis

BASF Agricultural Solutions Capital Market Story 2014 5

* GDP: Annual percentage change of a country's GDP in constant prices. Agriculture industry: BASF analysis of FAO, IHS Global Insight

and national statistics (e.g. Eurostat). Crop Protection: Phillips McDougall data

Accelerated crop protection market growth

Growth*

in %

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Agriculture industry World GDP Growth Crop protection industry

Crop protection market has clearly outgrown Agriculture and GDP

0

100

200

300

400

500

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

CAGR Crop protection

1980 - 2013 4%

Page 6: Titelmasterformat durch Klicken BASF Agricultural ... · PDF fileBASF Agricultural 1Solutions Capital Market Story 2014 Titelmasterformat durch Klicken bearbeiten ... BASF analysis

BASF Agricultural Solutions Capital Market Story 2014 6

FY sales

2013**

€ 5,227m

$ 10,923m

€ 7,194m

$ 3,541m

$ 5,546m

$ 4,521m

Crop protection: A consolidated industry BASF has outgrown peers

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Novartis

Aventis

Aventis

AHP

**Source: corporate reports and BASF estimations * Crop protection sales, CAGR 2008-2013

Zeneca

Ciba

Sandoz

Merck

ICI

ISK Biosciences

Bayer

Rhone-Poulenc

Hoechst

Schering

DuPont

Monsanto

BASF

Shell

Cyanamid

Dow

Rohm & Haas

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2013

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BASF Agricultural Solutions Capital Market Story 2014 7

Positioning & strategy Evolution of crop protection innovators’ offering

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Farmer as steward of the land

Crop protection has become a solutions business

1970 today

Market demand

Broad use of modern crop protection

1990

Further increase of technology adoption

future

IT Services

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BASF Agricultural Solutions Capital Market Story 2014 8

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Positioning & strategy Strategic positioning, product examples

Innovation

beyond

crop protection

Traits & seed

partnerships

Crop

protection Urban pest control Termidor®

Insect control fipronil

Disease control F500®

Weed control Kixor®

Seed treatment Standak®Top

Herbicide tolerant

systems

Clearfield®

dicamba HT*

Soil

management

Financial

services

Plant health

Biologicals

BASF

offering

IT Services

* incl. EngeniaTM: technologically-advanced dicamba formulation for use in dicamba/glyphosate tolerant cropping systems

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BASF Agricultural Solutions Capital Market Story 2014 9

Sales of > €500 million in 2020

Global R&D network

2014:New Biostacked launches and global expansion in 2014

Broad product innovation on horizon

1 | Positioning & strategy

2 | Financial results & targets

3 | Growth levers

3.1 | Portfolio Development

3.2 | Growth Markets

3.3 | Innovation & Investments

4 | Summary & outlook

9

BASF Agricultural Solutions Capital Market Story 2014

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BASF Agricultural Solutions Capital Market Story 2014 10

* Sales drivers FY 2013: volumes +10%; prices +3%; currencies -5%; structure +4%; Q1 2014: volumes +9%; prices +3%; currencies -6%

Financial results Record sales and earnings, EBITDA margin target surpassed

million € FY 2013 FY 2012 % Q1 2014 %

Sales* 5,227 4,679 +12% 1,653 +6%

EBITDA before special items 1,389 1,193 +16% 552 +3%

EBITDA margin 26.6% 25.5% - 33.4% -

EBIT before special items 1,222 1,037 +18% 510 +2%

EBIT margin 23.2% 22.0% - 30.7% -

Assets (as of Dec 31st) 6,777 6,527 +4% 7,841 +2%

Capex 310 167 +85% 63 +7%

Research and development expenses 469 430 +9% 112 +12%

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

2013 another record year. EBITDA margin exceeds 25% target and long-term average

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BASF Agricultural Solutions Capital Market Story 2014 11

Positive business performance due to strong demand in Europe and North America

Currency headwinds in several key markets

Challenges in South America due to adverse weather

Q1 2014

Northern hemisphere: 8% CAGR 2008-2013, with strongest growth in N. America

Southern hemisphere: 10% CAGR 2008-2013

Reduced earnings seasonality through significant contribution from Southern hemisphere

Asia Pacific

513 (-2%)

Europe

1,946 (+7%)

South America,

Africa, Middle East

1,271 (+4%)

North America

1,497 (+35%)

€5,227 (+12%)

Multi-year view 3rd Party sales FY 2013 by region*

in million €

* In brackets: growth at constant exchange rates in % vs. prior year

Financial results A regionally balanced market presence

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

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BASF Agricultural Solutions Capital Market Story 2014 12

Fungicides

2,269 (+9%)

Herbicides

1,790 (+12%)

Insecticides/Other

880 (+0%)

€5,227 (+12%)

Fungicides: Significant volume growth in Europe, driven by cereal fungicides

Herbicides: Sales increase, volume and prices up in North America and Europe

Insecticides: Continued innovation strategy in Fipronil

Functional Crop Care: Continued growth momentum

Q1 2014

Sustained leadership in fungicides. Herbicides sales thrived (9% CAGR 2008-2013)

Insecticides growth opportunity

New: Functional Crop Care

Functional Crop Care

288 (new)

3rd Party sales FY 2013 by indication*

in million €

Multi-year view

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Financial Results A balanced portfolio, with new segment Functional Crop Care

* In brackets: growth at constant exchange rates in % vs. prior year

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BASF Agricultural Solutions Capital Market Story 2014 13

4,679

5,227

~6,000

2012 2013 2015E 2020E

~8,000

Financial targets & sales drivers

in million €

Financial results & targets Keeping the momentum towards €8 billion sales target in 2020

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

* Growth markets (GMs) : Latin America, Eastern Europe, Africa, Asia (w/o Japan, Australia, New Zealand)

CAGR 2013-2020 6%

Fungicides

Herbicides

Insecticides

Functional

Crop Care

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BASF Agricultural Solutions Capital Market Story 2014 14

0%

5%

10%

15%

20%

25%

30%

1.000

2.000

3.000

4.000

5.000

6.000

2001 2003 2005 2007 2009 2011 2013

EBITDA margin*

in %

EBITDA margin

Sales to 3rd parties

in million €

Financial results & targets Further profitable growth targeted with ~25% EBITDA (average)

* Before Special Items. 2004 onwards according to IFRS. 2006 onwards excl. corporate cost

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

3-year average

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BASF Agricultural Solutions Capital Market Story 2014 15

Our growth levers

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

* Before Special Items

Additional

upstream

earnings

(backward

integration)

High profitability

26.6% EBITDA*

margin in 2013

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BASF Agricultural Solutions Capital Market Story 2014 16

Sales of > €500 million in 2020

Global R&D network

2014:New Biostacked launches and global expansion in 2014

Broad product innovation on horizon

16

1 | Positioning & strategy

2 | Financial results & targets

3 | Growth levers:

3.1 | Portfolio development

3.2 | Growth markets

3.3 | Innovation & investments

4 | Summary & outlook

BASF Agricultural Solutions Capital Market Story 2014

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BASF Agricultural Solutions Capital Market Story 2014 17

Portfolio development Blockbuster fungicide F500®

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Revolving innovation towards >€1 billion peak sales potential for F500® franchise

2002 2003 2004 2005 2006 2012 2001 2013 2014 2007 2011

Market launch of

F500®, first mixtures

(incl. Epoxiconazol)

Launch of global

brand AgCelence,

(Brazil, soy)

Production

start-up

Launch of mixture

with Boscalid

Launch of Plant Health

products in the US

Nominated

for the German

"Zukunftspreis"

Collaboration with

Monsanto on F500 &

Xemium-based seed

treatments

3rd plant expansion

comes on stream

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BASF Agricultural Solutions Capital Market Story 2014 18

.

Next upcoming registrations Xemium registered

Xemium®

Portfolio development New blockbuster fungicide Xemium® continues to thrive

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

New carboxamide

fungicide; one a.i.

covers all market segments

Registration proceeds swiftly:

– Status: > 70 crops, >40 countries

– Target: >100 crops, >70 countries

In launch since Q4 2011,

outstanding market reception

Registration in Brazil and China

in September 2013

Peak sales potential has tripled

since launch, now >€600 million

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BASF Agricultural Solutions Capital Market Story 2014 19

Portfolio development Fipronil-based innovation: Termidor® HE system

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Termidor®

Differentiating product

innovations based on Fipronil

Termidor®: The leading termite

control product over a decade

Termidor® HE: System which

enhances dispersal of Fipronil

in the treatment zone

Benefits:

– 1/3 fewer drills

– 50% lower water use

– 1/3 less labor

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BASF Agricultural Solutions Capital Market Story 2014 20

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Portfolio development Herbicide renaissance

BASF herbicide launches

U.S. market

Herbicide renaissance

2013 2014 2015 2016 2017 - 2020 2012

Wheat

Rice

New Herbicide a.i.

New Rice Herbicide

Cotton

Soybean, Cotton

Alfalfa and Harvest

Aid in Rice & Wheat

Plus

Improved Residual

Treevix™

Sharpen™

Integrity™

OpTill™

Kixor™ Herbicide a.i.

2011 2010

Optill PRO™ Powered by Kixor© Herbicide

Armezon™ Herbicide

Facet L™ Herbicide

Zidua™ Herbicide

Outlook™ Herbicide

Sharpen™ Powered by Kixor© Herbicide

Optill PRO™ Powered by Kixor© Herbicide

Armezon™ Herbicide

Zidua™ Herbicide

Clearfield Plus™ Production System

Outlook™ Herbicide

Varisto™ Herbicide

Sharpen™ Powered by Kixor© Herbicide

Engenia™ Herbicide

Engenia™ Herbicide

Outlook™ Herbicide

Zidua™ Herbicide

Increasing weed

resistance requires

rethinking of weed control

BASF with continued flow

of new herbicide launches,

esp. in the Americas

CAGR +9% for 2008-2013

BASF‘s multi-level approach

Strong herbicide pipeline

Successful expansion of Kixor®

Herbicide-tolerant production

systems:

– Clearfield® grows globally

– Cultivance® and Engenia®

(Dicamba) upcoming

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BASF Agricultural Solutions Capital Market Story 2014 21

Portfolio development Clearfield® system for weed management

Russia, Ukraine, Bulgaria,

Hungary, Argentina

US, Brazil, Central

America, Malaysia

Sunflower

Oilseed Rape / Canola

Rice

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

>2M ha

Central & Eastern Europe,

Canada, Australia

>2.5M

ha

High-yielding

varieties with

broad spectrum

herbicides

>5M ha

BASF sells imidazolinone herbicides to farmers and licenses own herbicide tolerance trait

technology to >100 seed partners

>10M ha

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BASF Agricultural Solutions Capital Market Story 2014 22

Portfolio development Offering is moving towards integrated solutions

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Crop Care Fallow / Burndown Pre/Post Emergence

22

BASF Agricultural Solutions Capital Market Story 2014

Soil Management

Seed Solutions

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BASF Agricultural Solutions Capital Market Story 2014 23

Portfolio development AgMusaTM: Game changer in sugarcane planting

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Market launch in Brazil in 2013

Maximizing sugarcane yield by caring for its foundation: healthy seedling

Disease free, pre-treated seedlings from nursery formation

Biofabric operation in São Paulo

Enhanced value creation for the farmer, significantly higher price level

AgMusaTM system for sugarcane

Multiplication Nurseries Treatment

Integrated, tailored solutions addressing the needs of each crop

Delivery excellence Production and treatment Sourcing

Planting

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BASF Agricultural Solutions Capital Market Story 2014 24

Portfolio development Functional Crop Care

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Soil Management

Seed Solutions Seed treatment to enhance

seed performance

Products to enhance water and nutrient management in the soil

Crop Care Products to manage abiotic

stress factors (heat, cold,

nutrient deficiency) and thus

enhance plant health

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BASF Agricultural Solutions Capital Market Story 2014 25

Sales of > €500 million in 2020

Functional Crop Care is a key

growth field with significant

investment (incl. acquisition of

Becker Underwood in 2012)

Global R&D and

commercial organization

established

New Biostacked®

launches and global

expansion in 2014

Wave of product

launches ahead

(2nd half of decade)

Portfolio development Functional Crop Care: Targets

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

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BASF Agricultural Solutions Capital Market Story 2014 26

Sales of > €500 million in 2020

Global R&D network

2014:New Biostacked launches and global expansion in 2014

Broad product innovation on horizon

26

1 | Positioning & strategy

2 | Financial results & targets

3 | Growth levers:

3.1 | Portfolio development

3.2 | Growth markets

3.3 | Innovation & investments

4 | Summary & outlook

BASF Agricultural Solutions Capital Market Story 2014

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BASF Agricultural Solutions Capital Market Story 2014 27

7.956

7.035

4.067

2.717

2.651

1.928

1.623

1.450

1.350

1.213

1.129

838

Brazil

USA

Japan

China

France

Germany

Canada

Argentina

Australia

Italy

India

Spain

Increasing importance of growth markets Brazil now the largest crop protection market

Crop protection markets

in million €

.

Source: Phillips McDougall, 2012 data

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

7,956

7,035

4,067

2,717

2,651

1,350

1,213

1,129

838

1,450

1,623

1,928

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BASF Agricultural Solutions Capital Market Story 2014 28

Success in growth markets

Over-proportional sales

increase in growth markets

– CAGR +11% for 2008-2013

– 2013: 42% of sales from

growth markets (2008: 37%)

Tailored business models as

basis for further expansion

Ongoing increase of resources

and R&D investments

Profitable business expansion

in growth markets, consolidated

margins globally on

comparable level

~€1 bn in EBIT bSI expected

~4.5

2.2

1.8

1.3

Third-party sales in growth markets

in billion €

Increasing importance of growth markets

* Eastern Europe, Africa, Asia (w/o Japan, Australia, New Zealand)

Latin America

CAGR 2008-2020 11%

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

2008 2011 2013 2020E

Other growth markets*

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BASF Agricultural Solutions Capital Market Story 2014 29

Increasing importance of growth markets Local grower business models: “Samruddhi”

Samruddhi

Non Samruddhi

*Source: BASF, Samruddhi project data for 2012, audit for 2013 ongoing

Samruddhi in India

Net profit

Total cost

of cultivation

Rs per hectare*

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

17,993

30,988

20,033

42,103 Trained agronomists safeguard

successful use of ‘technology’

Quantified, tangible benefit for

the farmer (audited by PWC)

>220,000 farmers participating*

Focus crops: soybean, potato,

onion, groundnut

Roll-out in other growth markets

ongoing (e.g. Indonesia)

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BASF Agricultural Solutions Capital Market Story 2014 30

Sales of > €500 million in 2020

Global R&D network

2014:New Biostacked launches and global expansion in 2014

Broad product innovation on horizon

30

1 | Positioning & strategy

2 | Financial results & targets

3 | Growth levers:

3.1 | Portfolio development

3.2 | Growth markets

3.3 | Innovation & investments

4 | Summary & outlook

BASF Agricultural Solutions Capital Market Story 2014

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BASF Agricultural Solutions Capital Market Story 2014 31

Innovation network

Core of our business model: Innovative solution provider

R&D involves BASF Research Verbund and external partners

Commitment to high R&D intensity (~9% of sales):

– 2009 - 2013: ~€ 2.0 billion

– 2014 - 2018: ~€ 2.9 billion

Innovation & Investments Innovation involves internal and external partners

Global R&D

platform

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

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BASF Agricultural Solutions Capital Market Story 2014 32

Consistent growth and output of our R&D pipeline: Peak Sales Potential €2.1 billion

Xemium® PSP now > €600m

Kixor® PSP raised to > €300m

Functional Crop Care shaping

up (e.g. soil management)

355

393

412

430

469

2009

2010

2011

2012

2013

Total R&D expenditures

in million €

R&D commitment is rewarded

Innovation & investments Commitment to R&D is rewarded by strong pipeline growth

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

1,200

1,700

2,100

2011

2012

2013

Pipeline peak sales potential*

in million €

* Pipeline: market launches in 2010-2020 timeframe

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BASF Agricultural Solutions Capital Market Story 2014 33

Raw materials* sourcing (Top-100 by value), 2013

in million €

Make: Raws from the Verbund

– Security & flexibility of supply

– Market-based transfer pricing

– Typically 35-40% of the Top-

100 raws come from Verbund

Buy: Sourcing synergies

– Economy of scale via joint

BASF procurement

Innovation & investments A differentiator: High share of raws from Verbund sources

* Without AI tolling, 3rd party AI, formulants, packaging

Raw materials: Make or buy

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

from 3rd parties

66%

from Verbund

34%

>€700

million

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BASF Agricultural Solutions Capital Market Story 2014 34

Capex 2009-2013

F500®: 3rd plant expansion

Kixor® and Xemium®:

new production plants

Xemium®: backward integration

Formulation: new plants and

expansions

Planned capex 2014-2018

Further capacity expansions

(F500®, Xemium, Dicamba)

New formulation plants

(e.g. Rudong, China)

R&D site expansion (IND, USA)

Innovation & investments Commitment to capex

Capex development

in million €

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

0,000

1,000

2,000

2009-2013 2014-2018

~ 900

~1,800

Investments expected to double (5-year period)

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BASF Agricultural Solutions Capital Market Story 2014 35

35

Services AgIT: Farmers need to manage multiple decision parameters

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Field stress

Financials Fertilizer

prices

Task

management

Documentation Weather

Certification

Wheat prices

Fleet

management

BASF Agricultural Solutions Capital Market Story 2014

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BASF Agricultural Solutions Capital Market Story 2014 36

Services AgIT: Today’s IT situation does not meet farmers’ needs

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

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BASF Agricultural Solutions Capital Market Story 2014 37

Services AgIT: Providing decision support for precision farming

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Grow

Smarter

Market

Smarter

Live

Smarter

Agronomic

How to increase yields

sustainably

Commercial

How to run farm enterprise

successfully

Emotional

How growers see themselves,

want to spend their time

Connect crop protection portfolio with services and the farmer community

Leverage BASF data science capabilities, tools and existing infrastructure

Partnership opportunities with leading market players (e.g. John Deere)

Market launch in Q4 2014

Solution provider approach

Strategic pillars Grower needs

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BASF Agricultural Solutions Capital Market Story 2014 38

Farmers’ risk exposure

Financial services for farmers

Financial programs with price guarantees

Grain exchange programs

Brazil: 84% of business with lower payment risk terms in 2013 vs. 62% in 2006

Financial services are key to mitigate BASF/farmers’ business risks

BASF offers financial services

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Farmer income Weather, FX & crop

price volatility

Farmers’ challenges go beyond the farm gate

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BASF Agricultural Solutions Capital Market Story 2014 39

Working with farmers & food value chain

partners

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Sustainability goes beyond

regulatory requirements

Increasing consumer concern

about food safety - globally

BASF’s solutions address

changing requirements

Partnerships with farmers as

well as retailers – to the benefit

of the consumer

Differentiator in competition

Food value chain partnerships

EU, North America South America Asia Pacific

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BASF Agricultural Solutions Capital Market Story 2014 40

Clear commitment to sustainable

agriculture

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

Improving

smallholders‘

lives

Safe-guarding

human health

and environment

Increasing

resource

efficiency e.g., water efficiency

e.g., Better Rice Initiative (BRIA)

e.g., Mata Viva

Economy Society

Sustain- ability

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BASF Agricultural Solutions Capital Market Story 2014 41

Managing sustainable farming with

AgBalance™ assessment

Manage resources more

efficiently

Develop sustainable market

approaches across the value

chain

Identify potential

improvements

and future trends

Differentiate from the

competition

BASF contributes to

sustainable farming

Management tool supports sustainable farming

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

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BASF Agricultural Solutions Capital Market Story 2014 42

Sales of > €500 million in 2020

Global R&D network

2014:New Biostacked launches and global expansion in 2014

Broad product innovation on horizon

42

1 | Positioning & strategy

2 | Financial results & targets

3 | Growth levers:

3.1 | Portfolio development

3.2 | Growth markets

3.3 | Innovation & investments

4 | Summary & outlook

BASF Agricultural Solutions Capital Market Story 2014

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BASF Agricultural Solutions Capital Market Story 2014 43

Well positioned for continued profitable growth

and to address global farmers‘ needs

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

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BASF Agricultural Solutions Capital Market Story 2014 44

Outlook

Positive market fundamentals expected to continue,

despite increased crop price volatility

Continued sales momentum of recent market launches

Accelerated technology adaption in growth markets will create

additional demand for BASF’s innovative solutions

Continued profitable growth expected, supported by high demand

for innovative solutions and our strong pipeline

25% average annual EBITDA* margin target (2013: 26.6%)

Targeted sales of ~€8 billion in 2020 (~€6 billion in 2015)

Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook

* EBITDA before special items

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