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BASF Agricultural Solutions Capital Market Story 2014 1
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Markus Heldt President Crop
Protection Division
Morgan Stanley
Investor Visit
Ludwigshafen
June 24, 2014
BASF Agricultural Solutions
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
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
BASF Agricultural Solutions Capital Market Story 2014 4
Farmer Expenses Crop Protection represents only small share of overall costs
Crop Protection
15%
Fertilizer
25%
Seed
20%
Other
25%
Farmer expenses 2013*
in %
Energy
16%
* Source: based on USDA data for US market 2013, includes total operating costs
U.S. Ag market has highest degree of technology adaption
Seeds, fertilizers: Significant share of farmer expenses. Fertilizers very price volatile
Crop protection cost portion is comparatively small
Crop protection demand impacted by weather
Farmer expenses in the U.S.
Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary and outlook
Crop Protection: small share of farmer expenses
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%
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
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
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
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
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
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
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
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 (GM’s) : Latin America, Eastern Europe, South Africa, Asia (w/o Japan, Australia, New Zealand)
CAGR 2013-2020 6%
Fungicides
Herbicides
Insecticides
Functional
Crop Care
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
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
High profitability
26.6% EBITDA*
margin in 2013
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
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
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
BASF Agricultural Solutions Capital Market Story 2014 19
Portfolio development Revolving innovation in Fipronil: E.g., Termidor® systems
Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook
Differentiating product innovations based on Fipronil
Termidor has been the leading termite control product over a decade
Termidor® HE: System which enhances dispersal of Fipronil in treatment zone
– 1/3 viewer drills
– 50% lower water use
– 1/3 less labor
Termidor launches 2000-2013:
Termidor success story
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
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
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
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
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
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
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
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
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*
BASF Agricultural Solutions Capital Market Story 2014 29
0
100
200
300
400
500
600
2008 2013 2015E 2020E
Africa
0
100
200
300
400
2008 2013 2015E 2020E
Latin America
Latin America: Additional
resources and assets added,
new financial tools introduced
Eastern Europe: Continued
organizational build-up
Asia: Strengthened asset and
organizational footprint
Africa: Organizational footprint
strengthened, ongoing portfolio
expansion
0
100
200
300
400
2008 2013 2015E 2020E
Eastern Europe
0
100
200
300
400
500
600
2008 2013 2015E 2020E
Asia
Growth-market sales
indexed
%
%
Individual measures
Increasing importance of growth markets
%
* CAGR 2008-2020
11% CAGR 2008-2020
12% CAGR 2008-2020
10% CAGR 2008-2020
16% CAGR 2008-2020
Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook
>€ 4.5 bn.
in 2020
BASF Agricultural Solutions Capital Market Story 2014 30
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)
BASF Agricultural Solutions Capital Market Story 2014 31
Sales of > €500 million in 2020
Global R&D network
2014:New Biostacked launches and global expansion in 2014
Broad product innovation on horizon
31
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
BASF Agricultural Solutions Capital Market Story 2014 32
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
BASF Agricultural Solutions Capital Market Story 2014 33
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
BASF Agricultural Solutions Capital Market Story 2014 34
R&D expenses
in million €
EBITDA bSI
in million €
0
200
400
600
800
2001 – 2013 2001 – 2013 0
200
400
600
800
1000
Continued commitment to R&D (~9% of sales annually).
Earnings have outgrown R&D expenses by factor 2.
EBITDA target of ~€2 billion in 2020.
Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook
Innovation & investments R&D commitment drives earnings growth
BASF Agricultural Solutions Capital Market Story 2014 35
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
BASF Agricultural Solutions Capital Market Story 2014 36
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)
BASF Agricultural Solutions Capital Market Story 2014 37
37
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
BASF Agricultural Solutions Capital Market Story 2014 38
Services AgIT: Today’s IT situation does not meet farmers’ needs
Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook
BASF Agricultural Solutions Capital Market Story 2014 39
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 2015
Solution provider approach
Strategic pillars Grower needs
BASF Agricultural Solutions Capital Market Story 2014 40
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
BASF Agricultural Solutions Capital Market Story 2014 41
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
BASF Agricultural Solutions Capital Market Story 2014 42
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
BASF Agricultural Solutions Capital Market Story 2014 43
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
BASF Agricultural Solutions Capital Market Story 2014 44
Sales of > €500 million in 2020
Global R&D network
2014:New Biostacked launches and global expansion in 2014
Broad product innovation on horizon
44
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
BASF Agricultural Solutions Capital Market Story 2014 45
Well positioned for continued profitable
growth & to address global farmers‘ needs
Positioning & strategy Ι Financial results & targets Ι Growth levers Ι Summary & outlook
BASF Agricultural Solutions Capital Market Story 2014 46
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
BASF Agricultural Solutions Capital Market Story 2014 47