BASF Agricultural Solutions

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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

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

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

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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

2013

7.1bn*

* Source: FAO

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

9bn*

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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 & strategyΙ Financial results & targets Ι Growth levers Ι Summary and outlook

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* 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 % World GDP Growth Agriculture industry 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%

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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 & strategyΙ 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

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BASF Agricultural Solutions Capital Market Story 2014 7

Positioning & strategy

Evolution of crop protection innovators’ offering

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

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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

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

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

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

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

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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

Financial results

A balanced portfolio, with new segment Functional Crop Care

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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

* 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

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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

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Our growth levers

* Before Special Items

Additional upstream earnings High profitability 26.6% EBITDA* margin in 2013

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BASF Agricultural Solutions Capital Market Story 2014 16

16

1 | Positioning & strategy

3 | Growth levers:

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BASF Agricultural Solutions Capital Market Story 2014 17

Portfolio development

Blockbuster fungicide F500

®

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

2002 2003 2004 2005 2006 2012 2001 2007 2011 2013 2014 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

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Portfolio development

Revolving innovation in Fipronil: E.g., Termidor

®

systems

 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:

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BASF Agricultural Solutions Capital Market Story 2014 20

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™

Optill PRO™

Armezon™ Herbicide Zidua™ Herbicide Clearfield Plus™ Production System Outlook™ Herbicide Varisto™ Herbicide Sharpen™

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}®

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Portfolio development

Clearfield

®

system for weed management

Russia, Ukraine, Bulgaria, Hungary, Argentina

US, Brazil, Central America, Malaysia

Sunflower

Oilseed Rape / Canola

Rice

>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

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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

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Soil Management

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Portfolio development

AgMusa

TM

: Game changer in sugarcane planting

 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

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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

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BASF Agricultural Solutions Capital Market Story 2014 26

26

1 | Positioning & strategy

3 | Growth levers:

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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

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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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%

2008 2011 2013 2020E

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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

>€ 4.5 bn.

in 2020

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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*

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 31

31

2 | Financial results & targets

3 | Growth levers:

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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

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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

1,200 1,700 2,100 2011 2012 2013

Pipeline peak sales potential*

in million €

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BASF Agricultural Solutions Capital Market Story 2014 34 R&D expenses in million € EBITDA bSI in million € 0 200 400 600 800 2001 – 2013 0 2001 – 2013 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.

Innovation & investments

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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

from 3rd _parties 66% from Verbund 34%

>€700

million

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BASF Agricultural Solutions Capital Market Story 2014 36

Capex 2009-2013

 F500®_{: 3}rd_{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 €

0,000 1,000 2,000 2009-2013 2014-2018 ~ 900 ~1,800

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BASF Agricultural Solutions Capital Market Story 2014 37 37

Services

AgIT:

Farmers need to manage multiple decision parameters

Field stress Financials Fertilizer prices Task management Documentation Weather Certification Wheat prices Fleet management

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Services

AgIT:

Today’s IT situation does not meet farmers’ needs

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BASF Agricultural Solutions Capital Market Story 2014 39

Services

AgIT: Providing decision support for precision farming

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

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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

Farmer income Weather, FX & crop

price volatility

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Working with farmers & food value chain

partners

 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

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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., MataViva

Economy Society

Sustain-

ability

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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

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44

1 | Positioning & strategy

3 | Growth levers:

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BASF Agricultural Solutions Capital Market Story 2014 45

Well positioned for continued profitable

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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

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