Tailoring solutions for a region of diversity Global Press Conference 2013

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1 Tailoring solutions for a region of diversity Global Press Conference 2013 Vincent Gros Senior Vice President, BASF Crop Protection Europe, CIS, Central Asia, Africa and Middle East October 2 nd, 2013

2 Agriculture and crop protection in our region A two-billion consumer market Europe: 26% of global chemical crop protection market Central Europe and CIS: significant growth potential for agriculture Africa and the Middle East: current growth driven by crops for export, mainly fruits and vegetables France, Germany and Italy among the globally leading crop protection markets Europe plays a key role in agricultural world trade as importer and exporter 2

3 A wide range of crops and yield performances demand a broad and flexible portfolio Predominant Crops - Western Europe: Cereals, oilseed rape, specialty crops - Central Europe, CIS: Corn, sunflower, cereals - Africa: Corn, fruits & vegetables, sugarcane Intensity - (average yield of wheat) Ireland: 10 tons/hectare Germany: 7 tons/hectare Poland: 4 tons/hectare South Africa: 3 tons/hectare Russia: 2 tons/hectare 3

4 Great variation of farm sizes calls for tailored business approaches Average farm size in Europe vs. CIS (ha*) Romania Italy Spain Germany UK Czech Rep Ukraine 2,000 Russia 2,500 Agroholdings: 200, ,000 hectares * Source EU: Eurostat Farm Survey, November 2012, all farms * Source CIS: BASF, agricultural enterprises only 4

5 Meeting farming needs with integrated and tailored solutions Services for risk and farm management Resource and stress management Crop protection The What The How Farmer focus and market approach Partnerships for integrated solutions Responsibility for human health and environment 5

6 *SDHI = succinate dehydrogenase inhibitor Innovative crop protection solutions Xemium fungicides for reliable disease control Crop protection Higher quality and better yields in cereals Septoria in wheat Best in class chemistry with strong, long-lasting effect against a wide spectrum of fungi Broad launch since 2012 in all key Western European cereal markets Well-established and recognized product performance after 2 years in the market Launches in Poland, Ukraine and Russia to follow in 2014 Untreated With Xemium I got an extra 0.74 t/ha yield by using Xemium compared to other SDHI fungicides Kaith Challen, Farmer, Lincolnshire, UK 6

7 Tangible results of our innovation beyond crop protection with AgCelence Resource and stress management Increasing efficiency and productivity Ukraine, sunflowers: plus 22% higher yield by increased stress tolerance against drought Europe, grain and silage corn: plus 8% to 10% higher yield by increased stress tolerance against drought Africa, sugarcane: plus 18% increase in biomass by better stress tolerance and increased plant growth efficiency 7

8 Innovation beyond crop protection also increasing food quality and environmental footprint Resource and stress management High quality and sustainable use of resources Spain, lettuce: Prolonged post-harvest shelf life by 70% through less dehydration, oxidation and diseases during storage Spain, tomatoes: Improved quality by >20% of additional marketable yield of industrial tomatoes by increased green mass effect Italy, wheat: Improved quality by better kernel quality, improved stress tolerance and protein content 8

9 Functional Crop Care solutions as key additions to the crop protection business Functional Crop Care Inoculants Natural nitrogen fixation Healthier crops and better yields European leader for inoculated Rhizobia soybean and legumes Transfer technology from west to east Biologicals Control of fungal diseases, insect pests and stimulation of plant development Delivering harvest flexibility and more quality produce Beneficial nematodes supporting the management of pests Seed biologicals stimulating plant development and nutrient uptake 9

10 Innovation in services with a field advice system - France Services for risk and farm management Advice on the right timing for fungicide applications Optimized number of treatments ton/ha additional yield Benefits for farmers, distributors, collectors and environment Partnership with technical institute Arvalis Institut du Végétal Business model based on charged service to farmers Sustainability without compromising yield performance

11 Meeting farming needs with integrated and tailored solutions The How Farmer focus and market approach Partnerships for integrated solutions Responsibility for human health and environment 11

12 Flexibility to adapt business models to fulfill new market demands Farmer focus and market approach Snapshot of agricultural market in CIS: Crop protection market in 2012: 1.6 billion Russia and Ukraine as predominant markets Strong growth expected by 2020 (+50%) New dynamic: Agroholdings and large farms becoming more professional and demanding tailored solutions BASF s approach: Deep analysis of growers needs and requirements Farmer Segmentation & Targeting Differentiated Value Offering Distributor Segmentation Working together with farmers and distributors to meet the demand of new, dynamic East European markets 12

13 Clearfield creating value with partnerships on more than 5 million hectares Partnerships for integrated solutions Combining high-yielding varieties with broad spectrum herbicides Sunflower: manage weeds of economic and social relevance* Oilseed Rape: increase oil yield and quality with broadest spectrum weed control including brassica weeds Rice: increase yield and quality by removing red rice +40 Seed Partners Technology Partnership Growers 4.5 million ha in Central, Eastern and South Europe, France and Africa 450,000 ha in Central and Eastern Europe, UK, France and Germany 100,000 ha in Italy *e.g. ambrosia - allergenicity 13

14 Meeting farming needs with integrated and tailored solutions The How Farmer focus and market approach Partnerships for integrated solutions Responsibility for human health and environment 14

15 Being an ambassador for responsible product use and setting higher standards Responsibility for human health and environment Our commitment Responsible use of crop protection products is a must We support legal requirements and go beyond with our activities to foster responsible product use Protect Water Safe Use Traceability 15

16 Our Biodiversity Farm Network Responsibility for human health and environment United Kingdom Monitoring progress of biodiversity for 10 years France Focus on birds, pollinators and the economic aspects of farming Italy Focus on environmental protection and innovations for specialty crops Germany Working with external experts to establish key biodiversity measures Poland Raising awareness among farmers with focus on pollinators and beneficials Czech Republic Biodiversity integrated in the Farmer Field Days 16

17 Tailoring our solutions to farmers needs Farming- The biggest job on earth 17

18 18

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