1. Agricultural SolutionsSustainable growththrough market-driven innovations

2. 2Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. BASF has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and BASF does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.BASF Roundtable Agricultural Solutions, August 8, 2011 3. 31 | Introduction2 | BASF Crop Protection3 | BASF Plant Biotechnology4 | Update Monsanto BASF Collaboration BASF Roundtable Agricultural Solutions, August 8, 2011 4. Agricultural Solutions Sustainable growth through market-driven innovationsDr. Stefan MarcinowskiMember of the Boardof Executive DirectorsBASF RoundtableAgricultural SolutionsNew York & MonmouthAugust 8, 2011 5. 4BASF Group results H1 2011Business performance H1 2011vs. H1 2010 Sales 37.8 billion +19% EBITDA6.4 billion +16% EBITDA margin 16.9% 17.3% EBIT before special items (bSI) 5.0 billion +19% EBIT bSI adjusted for non-comp. oil taxes 4.7 billion +26% EBIT4.8 billion +22% Net income3.9 billion +75% EPS 4.21+75% Adjusted EPS3.69+31% Significant sales and earnings growth in the chemicals business Excellent performance of the acquired former Cognis business Earnings in Agricultural Solutions increased despite adverse weather conditions Sales growth in Oil & Gas was price driven. Net income rose by 34% BASF Roundtable Agricultural Solutions, August 8, 2011 4 ResultsAgricultural Solutions SustainabilityVerbund synergies Summary, outlook 6. 5Outlook 2011AssumptionsWe forecast Brent oil price of $110/bbl (from $100/bbl) and US$/ of $1.40 (from $1.35)We are assuming that oil production in Libya will not restart during 2011 EBIT before special items from our Libyan oil production for the full year 2011will be about 1 billion lower compared with 2010(thereof about 700 million of non-compensable oil taxes)Targets 2011 We expect to generate significantly higher sales We aim to significantly exceed the 2010 EBIT before special items adjusted for non-compensable oil taxes (2010: 7.2 billion) We expect to achieve a high premium on our cost of capitalMedium-term targetsWe aim to grow sales on average by two percentage points per yearfaster than chemical production growthWe strive to grow our earnings further year by year,and to achieve an EBITDA margin of 18% by 2012 BASF Roundtable Agricultural Solutions, August 8, 2011 ResultsAgricultural Solutions Sustainability Verbund synergiesSummary, outlook 5 7. 6BASFs segment structure PerformanceFunctionalAgricultural Chemicals Plastics Oil & GasProductsSolutionsSolutionsPerformance Dispersions & Crop Inorganics CatalystsOil & Gas Polymers PigmentsProtectionPetro- Poly-CareConstruction PlantchemicalsurethanesChemicalsChemicalsBiotechnology Inter-PerformanceCoatingsmediatesChemicalsPaperChemicalsNutrition &HealthBASF Roundtable Agricultural Solutions, August 8, 2011 ResultsAgricultural SolutionsSustainabilityVerbund synergies Summary, outlook 8. 7Sales 2010 by segmentsChemicals Business Agricultural Solutions 6%Chemicals18%Oil & Gas 17%Plastics Total sales16%Other 64 billion 9%Performance Products19%Functional Solutions15%BASF Roundtable Agricultural Solutions, August 8, 2011Results Agricultural Solutions Sustainability Verbund synergies Summary, outlook 9. 8Agricultural SolutionsR&D expenditures 2010 Capex 2011 2015Chemicals ChemicalsBusinessBusinessAgricultural AgriculturalSolutionsChemicalsSolutionsChemicals 4%9% 26%15% 35%Plastics10% Plastics1.514%12.6PerformanceProducts billionPerformancebillion19%Plant BiotechProducts Oil & Gas*10% 14%35%FunctionalSolutionsother Corp. R&D12% Functional 12%Solutions OtherOtherOil & Gas6% 12%1% 1% * Excluding investments in Nord StreamAgricultural Solutions: Innovation-driven business BASF Roundtable Agricultural Solutions, August 8, 2011 ResultsAgricultural SolutionsSustainability Verbund synergies Summary, outlook 10. 9Agricultural SolutionsEBIT before special items Agricultural Solutions, reliablein billion EBIT generator for BASF10Not coupled to chemical cycle,8.1 stable earnings8Substantial contribution to6 Group earnings in 2009 trough 4.9420 20092010 Agricultural Solutions Oil & Gas Chemical activities including OthersReliable earnings contribution to BASF GroupBASF Roundtable Agricultural Solutions, August 8, 2011 ResultsAgricultural Solutions Sustainability Verbund synergies Summary, outlook 11. 10Agriculture is resilient to crisesGrowth* in % World GDP Growth AgricultureAutomotive2520151050 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 -5-10-15 1979/80:1991: 2000:-202nd oil crisisJapan crisisDotcom crisis1973:19811990/91: 1997/98: 2001:2008/09:1st oil crisis US-loan crisisGulf war I Asia crisis9/11 Financial crisis*GDP: Annual percentage change of a countrys GDP in constant prices of base year 2005Sectors: Annual percentage change of worlds Production Index, 2005=100Source: BASF analysis of FAO, IHS Global Insight and national statistics (e.g. Eurostat)BASF Roundtable Agricultural Solutions, August 8, 2011 Results Agricultural SolutionsSustainability Verbund synergies Summary, outlook 12. 11Agriculture is a growth industry Growing / aging Urbanization,Globalization andEnergy demand,global population metropolization emerging marketsclimate impactRising demand for agricultural products Limited ressources (land, water)Yield increase via agricultural solutions neededBASF Roundtable Agricultural Solutions, August 8, 2011 ResultsAgricultural Solutions Sustainability Verbund synergies Summary, outlook 13. 12Agriculture needs innovationWorld Population Technology Wavesin billion people201198Plant Biotechnology76Crop Protection5Breeding4 Fertilizers3 Mechanisation2 Land & Irrigation11850 1890 19301970 2010 2050 Technological innovations needed to fill the gap between demand and supply BASF Roundtable Agricultural Solutions, August 8, 2011 ResultsAgricultural Solutions SustainabilityVerbund synergies Summary, outlook 14. 13BASFs offering: Agricultural SolutionsCrop ProtectionBASF Plant ScienceBASFs Agricultural Solutions offering helps to fill the gap BASF Roundtable Agricultural Solutions, August 8, 2011ResultsAgricultural Solutions Sustainability Verbund synergies Summary, outlook 15. 14Sustainable agriculture Sustainability: Value for BASFSUSTAINABILITYIntegral part of R&D strategyDifferentiation on product levelIncreased customer retentionvia new business modelsTransparency in oursustainability conceptssupports positive perception ofBASF by public and investorsBASFs definition of sustainable agriculture Achieving more yield with less land, water, and energy, while ensuring the profitability of farming, caring for the environment, and meeting the needs of society.Sustainability: Translating values into value BASF Roundtable Agricultural Solutions, August 8, 2011ResultsAgricultural Solutions Sustainability Verbund synergies Summary, outlook 16. 15Sustainable agricultureProduct example Standard Plant Health effect Improved stress tolerance and growth Improved crop quality Yield increases of >10% Higher return on farmers investment Improved land-use efficiency Resource conservation Integrated offer from planting to harvest in launch: Plant Health: Economic & ecological benefit BASF Roundtable Agricultural Solutions, August 8, 2011 Results Agricultural Solutions Sustainability Verbund synergies Summary, outlook 17. 16Sustainable agricultureMite AwayTM Quick Strips: Efficient control of mites Mites are one of the major causes for bee colony collapse disorder Biodegradable product: gel containing formic acid, sugar, starch wrapped in paper and Ecoflex film Combination of BASF and beekeeper know-how Mites are efficiently killed Product launched in US in 2011 Mite AwayTM contributes to improving bee healthBASF Roundtable Agricultural Solutions, August 8, 2011Results Agricultural Solutions Sustainability Verbund synergies Summary, outlook 18. 17Sustainable agricultureinnovate explain care Product stewardship throughout the entire product life-cycleBASF Roundtable Agricultural Solutions, August 8, 2011Results Agricultural Solutions Sustainability Verbund synergies Summary, outlook 19. 18BASF Roundtable Agricultural Solutions, August 8, 2011 20. 19Verbund synergies along the value chainKnow-how Verbund Production & Sourcing VerbundKnow-how Verbundinnovationsa.i. discovery &raw activeformulated beyond cropprocess designmaterials ingredientactive ingredient protectionBASF adjuvants, BASFsBASF productionBASF products &back-integrationformulation R&D expertsnetwork know-how expertise R&D partners External suppliers Partners and customersBASF Roundtable Agricultural Solutions, August 8, 2011 Results Agricultural SolutionsSustainability Verbund synergies Summary, outlook 21. 20Verbund synergy exampleKnow-how Verbund A +B People: Technical knowledge pool of 9,600 experts in R&D multi-stepSuzuki: Processes and Products: alternatives 1 step Cross-divisional innovations ABExample: Suzuki-based Boscalidproduction route Suzuki coupling offers great shortcut in reaction route, but is perceived as academic (not upscalable) BASF realized 1st & only industry-scale Suzuki process New plant started up in 2005 (Guarantinguet, Brazil) Boscalid global peak sales potential: 300 millionKnow-how Verbund leads to lower manufacturingcosts for Boscalid BASF Roundtable Agricultural Solutions, August 8, 2011 ResultsAgricultural SolutionsSustainability Verbund synergies Summary, outlook 22. 21Verbund synergy exampleTop-100 raw materials* by value in 2010Make/buy along Ag value chainin million Upstream:Back-integrationfrom 3rd parties 340 from Verbund58% 42% security & flexibility of supply million market-based transfer pricing Sourcing synergies economy of scale via jointA.i.s sales share** from own production BASF procurementin % GenericsBASF peers BASF Downstream:0%25%50%75% 100% Highest level of in-house a.i. production vs. peer group* without tolling, formulants, packaging Outsourcing: tollers are involved** own estimates when economically attractive Highest level of value capture in the industry BASF Roundtable Agricultural Solutions, August 8, 2011 ResultsAgricultural SolutionsSustainability Verbund synergies Summary, outlook 23. 22Verbund synergy examplePolymers in seed treatment products Improved effectiveness, seed flow and sowing Reduction of seed dusting Targeted use of modern low-dose chemistry First product launch in 2012Know-how synergiesuntreated soybeans Broad polymer portfolio and experience within BASF (properties, formulations, applications) Technology platform for development of differentiated seed treatment solutions Seed treatment solutions with advantages forfarmers through BASF polymer know-how treated soybeansBASF Roundtable Agricultural Solutions, August 8, 2011Results Agricultural Solutions Sustainability Verbund synergies Summary, outlook 24. 23Profitability Crop Protection divisionSales to 3rd partiesEBITDA Crop Protection has deliveredin billion margin*3 year-average EBITDA margin4.54.50030 % 30%has reached ~25% level4.04.000 25% target 25 % Fluctuations due to weather,3.500crop prices, foreign exchange3.03.00020 % 20%rates2.500 15 % 15%Ongoing investments for further2.02.000business expansion1.50010 % 10%1.01.000 R&D and sales, especially 5% %5 in growth markets 500 0 0% Capex 2002 20042006 2008 20102001 EBITDA2002 2003 3-y- EBITDA2004 2005 2006 2007 2008 2009 2010* before Special Items. 2004 onwards according to IFRS. 2006 onwards excl. corporate cost** under optimal conditions Crop Protection EBITDA margin target: 25%**BASF Roundtable Agricultural Solutions, August 8, 2011Results Agricultural SolutionsSustainabilityVerbund synergies Summary, outlook 25. 24Summary and outlookResilient industry, multiple sustained growth driversOpportunities both in Crop Protection and PlantBiotechnologyBASFs innovation strength allows for differentiating offerIntegral part of the VerbundDetermined to grow Agro: High R&D investments In-licensing (Meiji Seika Kaisha) Selective acquisitions (American Cyanamid, Sorex) Cooperations with strong partners (Monsanto, ) BASF is fully committed to Agricultural SolutionsBASF Roundtable Agricultural Solutions, August 8, 2011Results Agricultural Solutions Sustainability Verbund synergies Summary, outlook 26. 31 | Introduction2 | BASF Crop Protection3 | BASF Plant Biotechnology4 | Update Monsanto BASF Collaboration BASF Roundtable Agricultural Solutions, August 8, 2011 27. Agricultural SolutionsSustainable growththrough market-driven innovationsMarkus HeldtPresident Crop ProtectionBASF RoundtableAgricultural SolutionsNew York & MonmouthAugust 8, 2011 28. 4Strategy:Creating farmer-focused solutionsBASFs integrated solution offer Improve profitability andsustainability of farmingCrop Protection is the core of Chemical Cropour solution offer Protection We invest in innovation beyond crop protection Traits & seed partnerships toAgricultural maximize the value of ourInnovation Solutions solution offer Traits & seed beyond crop partnershipsprotection enables farmers to increase marketable yieldsustainably BASF Roundtable Agricultural Solutions, August 8, 2011Strategy Results PipelineGrowth segments Growth marketsSummary 29. 5Financial results H1 2011million H1 2011 H1 2010% % CERSales* 2,435 2,3563%6%EBITDA** 757 7392%6%EBITDA margin** 31.1%31.4%--EBIT** 674 6415% 10%EBIT margin** 27.7%27.2%--Assets (as of June 30)***5,326 5,478 (3%) 4%Research and development expenses191 1853%4%* sales drivers in H1 2011: volumes 7%, prices -1%, currencies -3%** before special items*** DSO 122 days (-16 days); DIV 166 days (-19 days); both as of June 30 Solid sales and earnings growth, further working capital improvementBASF Roundtable Agricultural Solutions, August 8, 2011StrategyResults Pipeline Growth segments Growth markets Summary 30. 6Sales by region H1 2011Total sales H1 2011 to third partiesKey factsin million Europe: Strong contribution from herbicides and Central/EasternNorth AmericaEuropeEuropean growth markets689 (-2%)1,152 (+7%) North America: Sales reflecting weather-related 2,435acreage reductions along with (+6%) competitive pricing in herbicidesAsia Pacific283 (+17%) South America, Africa, ME: Intense use of Fipronil-basedSouth America, insecticides and highAfrica, Middle Eastperformance of AgCelence311 (+12%) Asia Pacific: Strong herbicide business inIn brackets growth at constant exchange rates in % vs. prior yearIndia and favorable seasonal Growth from emerging markets, global volume development in other growthgrowth marketsBASF Roundtable Agricultural Solutions, August 8, 2011 StrategyResultsPipeline Growth segments Growth marketsSummary 31. 7Sales by indication H1 2011Sales by indication Key factsin million Fungicides: Strong global volume gains and high demand supported byFungicides Herbicidesgrowth markets. Plant Health1,122 (+12%) 893 (0%)business in full swing Herbicides: 2,435High demand across our (+6%) portfolio compensating decline in North America based on product mix along with Insecticides/Othercompetitive pricing420 (+5%)Insecticides: Continued above-market growth of our portfolio drivenIn brackets growth at constant exchange rates in % vs. prior yearby growth in seed treatment and soil applied productsSignificant growth in fungicidesBASF Roundtable Agricultural Solutions, August 8, 2011 StrategyResultsPipeline Growth segments Growth marketsSummary 32. 8Powerful Crop Protection pipeline 2011Value up by 200 million to 2.4 billion Stage I*Stage II* Stage III* Market segmentsIn development, 2011-2016 In launch, 2006-2010Launched, 2002-2005F 500 (F), Boscalid (F), Field crops,Metrafenone (F), Dimoxystrobin (F)specialty crops,Tritosulfuron (H), Chlorfenapyr (I) non-cropOryzastrobin (F), F 500 seed treatment (F) Field crops, specialty crops,Topramezone (H), Kixor (H)Metaflumizone (I) seed treatmentInitium (F)Field crops,Xemium (F) specialty crops,seed treatmentHT Project Cultivance**HT Project Dicamba1 Insecticide700 million1,700 million*** Peak sales potential* Launched: First registration in major market in 2002 (or more than 5 years before current year), In launch: First registration in major market 1 to 5 yearsprior to current year. In development: First registration in major market in current year or within next 5 years after current year. Points do not refer toexact launch year.** Herbicide tolerance project Cultivance also reported in BASF Biotech Pipeline.*** In Stage II and Stage III, 70% of peak sales already achieved.BASF Roundtable Agricultural Solutions, August 8, 2011 StrategyResults Pipeline Growth segments Growth markets Summary 33. 9Pipeline value developmentBASF R&D investments continuously paying offTotal peak sales potentialExamples of innovationsin billion launched / in launch since 20023.0 +33%2.5 2.4 2.2 2.12.01.81.5Rich portfolio of young products1.0 basis for further growth0.50.0 2008 20092010 2011Pipeline value increased by >30% since 2008BASF Roundtable Agricultural Solutions, August 8, 2011StrategyResults Pipeline Growth segments Growth markets Summary 34. 10Portfolio expansion: XemiumProjected global fungicide market*Xemium key factsin billion Next-generation carboxamide12 fungicide, ready for launch10 BASF is carboxamide pioneer, Xemium strengthens lead 8SpecialtycropsOur 1st carboxamide fungicide 6 for all market segmentsFieldData submission started; 4cropsfor all segmentsbroad launch in >50 countries, >100 crops 2Seed Market introduction from 2012 0Treatment 201020152020 Xemium global peak sales potential: >200 million* Source: Philips McDougall, own estimation Xemium can be applied in all market segmentsBASF Roundtable Agricultural Solutions, August 8, 2011 Strategy Results Pipeline Growth segments Growth markets Summary 35. 11Portfolio expansion: XemiumXemium key factsXemium provides protectionagainst many fungal diseases ina wide range of crops: Effective preventative and curative control combined with long-lasting residual activityKey benefits for growers Consistently higher yields with better quality More flexible use Convenience and versatility World-wide launch of the Xemium product familyBASF Roundtable Agricultural Solutions, August 8, 2011 StrategyResultsPipeline Growth segments Growth markets Summary 36. 12Success story in Plant Health continues sales to third partiesKey facts about AgCelencein million Market leadership position700 in the Americas since 2007600Global roll-out in 2010: Successful launch in Eastern500European growth markets400 Brand extension to300 AgCelence productionCAGR 29%*system in South America200 In 2011, further expansion in100 North America, growth marketsand additional crops 02007 20102011E 2015E AsiaEuropeSouth America North America* CAGR 2007-2010Significant growth potential, global launch ongoingBASF Roundtable Agricultural Solutions, August 8, 2011 StrategyResults PipelineGrowth segments Growth markets Summary 37. 13AgCelence production system in Brazil Key factsAgCelence production systemfor soybean growers in BrazilStandak Top SeedSolutionsinnovation launched in Brazil: Convenient insecticidal andfungicidal seed protectionwith benefits for plant health Complements foliar offers(Comet/Opera)Successful launch in 2010:1.2 million ha treatedIntegrated production system, planting to harvestBASF Roundtable Agricultural Solutions, August 8, 2011 StrategyResultsPipelineGrowth segments Growth marketsSummary 38. 14SeedSolutions sales 2003-2010Strong performancein million BASF has clearly outgrown the300300market (CAGR 17% vs. 9%) Ready-to-use insecticidal and250205fungicidal seed protection200Focus on soybeans, cereals, CAGR +17%*corn, rice and vegetables150 Investments in new application10070 technology facilities and product launches (e.g. Xemium seed 50treatment) will support further growth in all regions0 2003 2010 2015EFungicides Insecticides* CAGR 2003-2010 Since 2003, BASF more than doubled sales BASF Roundtable Agricultural Solutions, August 8, 2011 Strategy Results Pipeline Growth segments Growth marketsSummary 39. 15Herbicide renaissance BASF well positioned for growthHerbicide market is regrowingR&D strategies redirected afterearly adaption of HT* systemsBASF re-focused R&D on novelchemistryToday, BASFs herbicideportfolio contains 9 differentmodes of actionIndustry leading pipeline: Kixor in launch Clearfield expansion unmet weed control needs weeds with developed/growing resistance Cultivance Promising pre-project candidates Dicamba-tolerant cropping systemBASF portfolio well-positioned to address weed gaps in partnership with Monsantoand resistant weeds * HT = Herbicide ToleranceBASF Roundtable Agricultural Solutions, August 8, 2011 StrategyResults Pipeline Growth segmentsGrowth markets Summary 40. 16Herbicide portfolio expansionBASF strategic path in weed control Key factsin billion Kixor global peak sales2.0 potential >200 million Largest U.S. herbicide launch inthe last 20 years*1.5 First market introduction inthe Americas in 2010, Brazil1.0 planned in 2012 Substantial capacity expansionplanned to meet high demand0.5Clearfield crop expansion foroilseeds in Europe in 20120.0Cultivance launch for20082010 2012 2014201620182020soybeans in Brazil in 2013Existing portfolio Next generation AIsdelivers another solution forNew product launches New herbicide tolerance traitsweed resistance managementSignificant growth driven by innovative solutions* Source: GfK KynetecBASF Roundtable Agricultural Solutions, August 8, 2011Strategy ResultsPipelineGrowth segmentsGrowth markets Summary 41. 17Dicamba collaboration with MonsantoInnovative new formulations, proven chemistry2011 Soybean field trial results, North Carolina, USA* Key factsGlobal herbicide licensing andsupply agreement for thelaunch of the Dicamba tolerantsystem in major row cropsInnovative formulations under UntreatedResidual + GlyphosateResidual + Glyphosatedevelopment at BASF+ DicambaComplementing glyphosate* Monsanto field trial: Dicamba-tolerant Genuity Roundup Ready 2 Yield Soybeans,with a different mode of actionglyphosate-resistant palmer amaranthfor weed resistancemanagementU.S. launch planned in mid ofthis decade for soybeans andcotton. Other countries andcrops to follow Significant market expansion potential seen thisdecade in the AmericasBASF Roundtable Agricultural Solutions, August 8, 2011 Strategy Results PipelineGrowth segments Growth marketsSummary 42. 18Innovations beyond crop protectionGoals Focus AreasApproach Support growers to Plant HealthBASF broadening its increase marketableview & offering yields sustainably solutions beyondCrop Protection Reach higher profitabilityDedicated resourcesNitrogen managementand structureestablishedProfitable contributionfrom 2015 onwardsWater management Leverage on Verbund products and technologies as unique competitive advantageBASF Roundtable Agricultural Solutions, August 8, 2011 Strategy Results Pipeline Growth segments Growth markets Summary 43. 19Strong expansion in emerging marketsSales development in emerging markets (third parties) Emerging marketsin billion CAGR +17% 2007-20103.0 2.72010: >40% of sales in2.5emerging markets (2007: 35%)2.0Sales from emerging markets CAGR +17%*1.7 expected >50% by 20151.5 1.1 Proven track-record of tailored1.0business models as basis for further expansion0.5 Ongoing increase of resources0.0and R&D investments 20072008 200920102015ELatin America other emerging markets** Eastern Europe, South Africa, Asia (w/o Japan, Australia, New Zealand) BASF well-positioned to tap future growth potentialBASF Roundtable Agricultural Solutions, August 8, 2011 StrategyResults PipelineGrowth segments Growth markets Summary 44. 20Asia 1 billion risingSales development in Asia (third parties) Key factsin billion Megatrends will increase the1.21,2role of Asia in global economy1,01.0with positive implication on1.01,0 Agriculture0.80,8Strong yield increase and technification necessary to0.60,6CAGR +18%* 0,4 0.4 meet growing demand0.40,40.40,4 0.30,3Target to reach 1 billion sales in Asia by 20200.20,2 Particularly China and India0.00,0have significant business2008 2009 2010 2020E opportunities and outstanding profitable growth potential* CAGR 2008-2010Target: 1 billion sales in 2020 BASF Roundtable Agricultural Solutions, August 8, 2011 Strategy Results Pipeline Growth segments Growth marketsSummary 45. 21Capturing growth opportunities in IndiaSales and market development India BASF prepared for futureindexgrowth 700700In 2010, India generated second highest sales in Asia600 BASF has been outgrowing the500 market since 2006, tripled sales400Sales force extension 322 310 CAGR +34%*supporting growth, ~ doubled300 198 since 2006200 100 India gained core strategic100market status in 2010 0 Investments in local technology 20062007 2008 200920102015E platform plannedBASF sales to third party in India Market growth Further significant growth* CAGR 2006-2010 potentialBASF outgrows the Indian market since 2006 BASF Roundtable Agricultural Solutions, August 8, 2011 StrategyResultsPipeline Growth segments Growth marketsSummary 46. 22South East Europe and Black SeaMarket development driven byArea increases, especially in cereals and oilseedsIntensification of agriculture in terms of treated area andtechnological upgradesGood basis for agricultural development and productivityincrease: e.g. access to Black Sea ports, high soil quality,improved liquidityBASF growth pillarsFurther expand Clearfield technology in oilcropsLeverage portfolio potential in cereal fungicidesLaunch of AgCelenceSales force expansionPotential to more than double sales by 2015 BASF Roundtable Agricultural Solutions, August 8, 2011StrategyResults PipelineGrowth segments Growth markets Summary 47. 23Increasing footprint in Africa/ Middle EastMarket development driven by BASF growth built on stronger Increase of cropped land: +30 million ha (2007-2013)**presence and innovations Strategy-shift and strong BASF Increasing agricultural intensity/technification investments since 2009 Need for productivity gains: Rising value of export cropsFuture sales growth and High soft commodity prices attracting investmentsimproved footprint supported by in agriculture Launch of innovationsAgCelence and Kixor Planned launch of HT* technologyClearfield Successful marketing ofinsecticide solutionsCompared to 2008, sales willbe doubled by end of 2011BASF targeting to triplesales by 2015 BASF targeting to triple sales by 2015 * HT = Herbicide Tolerance** source: FAO BASF Roundtable Agricultural Solutions, August 8, 2011StrategyResults PipelineGrowth segments Growth markets Summary 48. 24Summary and outlookAll regions and indications will contribute to profitablebusiness growth in 2011We build on a solid basis in Crop Protection, includingSeed Treatment and traitsUntapped growth opportunities: innovation beyond cropprotectionWe have the opportunity to grow and differentiate byevolving from offering products to solutionsContinued commitment to R&D and investments ingrowth marketsFor 2011, record sales and earnings expectedBASF Roundtable Agricultural Solutions, August 8, 2011 StrategyResults PipelineGrowth segments Growth markets Summary 49. 3 31 | Introduction2 | BASF Crop Protection3 | BASF Plant Biotechnology4 | Update Monsanto BASF Collaboration BASF Roundtable Agricultural Solutions, August 8, 2011 50. Agricultural Solutions Sustainable growth through market-driven innovationsDr. Peter EckesPresident BASF Plant ScienceBASF RoundtableAgricultural SolutionsNew York & MonmouthAugust 8, 2011 1 51. 4Market development plant biotechnologyGlobal GM crop area Key factsin million hectares; 1 ha = 2.47 acres148 Global GM crop area140continued to grow in 2010120Biotech crops cover about 10% of the cultivated land100 CAGR 22%* In 2010, 15.4 million farmers 80 grew GM crops in 29 countries 60Market expected to grow to 40USD50 billion by 2025 20 1101997 200020032006 2010* CAGR 1997-2010Source: ISAAA 2010Continued strong growth Strategy PartnersPipelinePlatform 52. 5BASF Plant Science Key facts Plant ScienceFounded in 1998 CropSweden DNA LandMarks DesignMetanomics SunGeneLeading platform for Plant Ames IowaLimburgerhofBiotechnology MidsouthRTPNorthCarolina7 R&D and 13 field site centersHawaii PuertoRico750+ employees worldwide Tamil NaduAnnual R&D spending~150 million CearaSaoPauloSt.CatarinaR&D sitesField site center Global research network at biotech hotspots Strategy Partners Pipeline Platform 53. 6BASF Plant Science strategyWhat? Increase crop yield through Plant BiotechnologyHow? Focus on yield traits for major crops Develop the leading technology platform to deliver the best traits for the best seed Access market through partnerships with leading seed companies Trait Technology Partner strategy StrategyPartnersPipeline Platform 54. 7BASF Plant Science partnershipsGlobal GM crop areaPartnerRankin million hectares; 1 ha = 2.47 acres market share-* Wheat* ***1Corn****1Rice ***1 Soybean Canola 2Cotton2Sugar cane**2Sugar beet1 *Wheat: very fragmented global market050 100150200 250** Sugar cane: market data for Brazil only(main producing country) Total harvested crop area GM crop area*** Monsanto: including licensing businessSource: USDA, ISAAA, BASF Plant Science**** Rice: hybrid rice market excluding ChinaStrong partners for yield traits in major crops Strategy PartnersPipeline Platform 55. 8Plant Biotechnology pipelineExpected gross trait sales 2020 before partner share+: 1.9 bn. Trait Discovery Stage IStage II Stage IIIStage IV total developmentgene identification proof of concept early product adv. product pre-launch time: 10-12 years& proof of concept in target crops development development Higher-yielding corn* Higher-yielding soybean* 21 generation Higher-yielding canola* Drought-tolerant corn*21 Drought-tolerant cotton* Yield & Stress Improved nitrogen utilization in corn* Higher-yielding wheat* Higher-yielding sugar cane** Higher-yielding sugar beet*** Higher-yielding rice**** Feed Improved corn feedHealthy fatty acids in canola SpecialtiesAmylopectin potatoes3 21Herbicide-tolerant soybean*****Nematode resistant soybean* Input traitsFungal-resistant potatoFungal-resistant soybean New projectAdvancement 2010 + 1=USD1.3 Partners: *Monsanto **CTC ***KWS ****Bayer *****Embrapa Innovation yields results StrategyPartners PipelinePlatform 56. 9EPA/DHA-omega-3 (-3) fatty acidproduction in canola 57. 10EPA/DHA-omega-3 (-3) fatty acidproduction in canolaNew EPA/DHA -3 food product launchesKey facts500Growing consumer interest in products with EPA/DHA--3 fatty acids due to proven250 health effects: arteriosclerosisSource:Frost and Sullivan prevention, decreasing risk of02009, BASF cardiovascular diseases 1994 1996 1998 2000 2002 2004 20062008 Current EPA/DHA--3 marketEPA/DHA -3 source in food product launches is expected to double to aboutFishAlgaeUSD2.8 bn. by end of decade60%18% Innovative production of EPA/DHA--3 fatty acid in canola Unknown/Other22% Opportunity for plant-produced EPA/DHA--3 fatty acids Strategy PartnersPipelinePlatform 58. 11EPA/DHA-omega-3 (-3) fatty acidproduction in canolaElucidation of EPA/- Transfer into plants Product development in canolaDHA--3 biosynthesisScientific groundworkEPA/DHA--3 Concerted expression of 10 genes producejointly established with production of >20% EPA/DHA -3 content in canola oil:academic partners>500 different gene sustainable productionGenes identified combinations tested in model and crop plants cost leadership positionand candidates forexpression in plants Identification of most ease of incorporation into food productsselected from algalpromising gene efficient scale-upand fungal genomes combinations World record in plant metabolic engineeringStrategyPartnersPipeline Platform 59. 12Increased yield in rice 60. 13Increased yield in riceCropGlobalGlobal Gross Sales Value Key factsProduction Crop Value* 10% Yield Increase** Rice is the worlds largest food (million MT/y)(billion USD) (billion USD)crop. Half of the worldsCorn866125 ~4 population consumes at leastone meal of rice every dayWheat 664124 ~4Besides insect resistance andRice456102 ~4herbicide tolerance, yieldSoybean 263 87 ~3 increase in rice offers an* Basis: corn USD144/MT, soybeans USD329/MT, wheat USD186/MT,attractive value potentialrice USD224/MTHybrid rice seeds are gaining** Based upon a single 10% yield increase trait example, assuming 60-70%popularity and market share of value is kept by farmer, depending on product and cropfrom traditional varieties dueto their ability to producehigher yieldsLarge market potential for increased yield in riceStrategyPartners Pipeline Platform 61. 14Key hybrid rice markets North AmericaBrazilIndiaTotal rice area (M ac):3 8 104Hybrid market*2010: 30% 50% with leads on commercial track Trait integration Field testing Regulatory data generation Regulatory submission Seed bulk-upGenes in testing Tens of thousandsThousands10s5% yield increase versus2020 value2: $250M $500MYield Increase bu/ac Control mean 140 bu/acre control(60 120 lbs N applied)Targets ways that corn plants can use nitrogenYield efficacy demonstrated more efficiently, exploring the potential to boost 6.4%3across 17 environments in yield under normal nitrogen conditions or to5.0%3 two years of testing understabilize yield in reduced nitrogen environmentsreduced nitrogen treatmentError bars LSD 10Nitrogen field testing:Jerseyville, IL- June 2010 Project advanced into expanded Phase II testing to develop several years of data showing performance of the gene across environments, and across germplasm backgrounds Developed a multi-location managed nitrogen testing network to enable rapid identification and development of future products1. Acre opportunity reflects acres where technology fits at Monsantos 2010 share in respective crops2. 2020 value reflects gross sales opportunity of trait family in launch country in year 20203. significant at p < 0.1 81. 10Second-Generation Higher-Yielding Soybeans Advanced;Designed to Enhance Yield Over First-Generation TechnologySecond-generation yield lead efficacy demonstrated Higher-yielding soybeans:in two consecutive years and across 14 environmentsSecond-generation projectin 2010 with comparator as parental line without gene(Status: Advanced Phase II) Project Concept Family value considerations: 10.2%Yield advantage (bu/ac)Yield Benefit Target Range Launch-country acres1: 35M 45M8.7%2020 value2: $250M $500MThis project is aimed at boosting yield potential 4.5% of soybeans through insertion of genes designedto increase soybean yieldsEvent 1Event 2 Event 3 Second-generation project concept14 locations, 2 reps testing:Consecutive years of consistent increased yield performance of Stacks of first-generation with second-generationgene across multiple environmentshigher-yielding soybeans show up to 7 percentField testing data demonstrates that successive traits create an yield improvement over first-generation higher-additive yield effect within project concept targetyielding soybean traitThis is a second-generation trait intended to be stacked with 1. Acre opportunity reflects acres where technology fits at Monsantos 2010 share in respective cropsfirst-generation and designed to provide a step-change in yield2. 2020 value reflects gross sales opportunity of trait family in launch countrypotential over first-generation technologyin year 2020 82. 11Monsanto and BASF Expanded Collaboration into Wheat;Lead Genes Advanced to Phase I2010 St. Louis growth lab chamber: first yield-and-stressYield-and-stress wheat:wheat transformations already complete Lead project (Status: Advanced Phase I) Family value considerations: Launch-country acres: To be determined when project enters Phase II 2020 value: To be determined when project enters Phase II Applying technologies from other crops expected to deliver a step-change in wheat yield productivity Lab work creates first wheat-trait transformationsLeveraging identified genes from other crop Trait package 1 Trait package 2work in Collaboration, the first yield-and-stresstransformations in wheat were made within 6months of initiation of wheat effort First-generation project is intended to stack yield-and-stress traits with herbicide tolerance1. Acre opportunity reflects acres where technology fits at Monsantos2010 share in respective crops Historical lack of industry investment in wheat technology has 2. 2020 value reflects gross sales opportunity of trait family in launch country resulted in reduced productivity compared to other major row cropsin year 2020 83. 12First-Generation Drought Regulatory Submissions Complete;Post-Registration On-Farm Trials Planned for 2012Drought tolerance: Segmented value by geographyDrought-tolerant corn: Target geography for First-generation project (Status: Phase IV) first-generation First-generation drought I: drought-tolerant corn (Phase IV) is the ~10M Launch-country acres opportunity: ~10M acre segment of theAccessible market: western dryland corn Western Great Plains Family value considerations: Launch-country acres1: 45M 55M Second-generation 2020 value2: $250M $500M drought-tolerant corn Reduces yield losses in water-stressed (Phase II) designed to build out the family of environments traits and reach the insurance acres of the Drought conditions: Central Corn Belt Testing season environmentsDrought Percentage Western dryland ~10M acres Irrigated 8M-12M acres Stability 60M-70M acres All regulatory submissions for planting and import have been made; on track for U.S. de-regulation on 2012 timing 2010 marked the third year of minimal drought conditions in the testing environment generating limited data Post-registration, Monsanto will apply lessons learned from previous launch experiences to build hybrid portfolio to guide commercialSource: USDA Drought Monitor approach1. Acre opportunity reflects acres where technology fits at Monsantos2010 share in respective crops In 2012, expect to use on-farm plots with key growers to generate 2. 2020 value reflects gross sales opportunity of trait family in launch country data on hybrid performancein year 2020 84. 13Dicamba-Tolerant Soybeans Advanced to Phase IV; SignificantStep Toward Providing Farmers Additional Tool for Weed Control2010 dicamba-tolerant by Genuity Roundup Ready 2 Dicamba-tolerant soybeans:Yield soybean plots show excellent tolerance to both Lead project (Status: Advanced Phase IV)dicamba & glyphosate applications Family value considerations: Test plots received two post-emergence sprays of 0.5 lb/A dicamba with and without 0.75 lb/A Roundup. Launch-country acres1: 35M 45M 2020 value2: 95 percent of gene nominations were uniquePlanted yield-and-stress trials from projects in early phasesin more than 170 locationsBASF research platform fuels progressMonsanto and BASF capabilities successfully interfaced Tens of millions metabolic data points generated Rice TraitMill extensively utilized in lead gene optimizationMonsanto and BASF collaboration expanded in 2010With the addition of yield-and-stress wheat the Collaboration expandedto five cropsIncreased potential overall R&D budget from $1.5B $2.5B 87. 16Collaboration in Yield-and-Stress Tolerance Strongest Collaboration in Plant Biotechnology