BASF Plant Science Strategy What?

Agricultural Solutions Sustainable growth through market-driven innovations

Dr. Peter Eckes President BASF Plant Science BASF Roundtable Agricultural Solutions New York & Monmouth August 8, 2011 1 22

Disclaimer

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 33

1 | Introduction

2 | BASF Crop Protection

3 | BASF Plant Biotechnology

4 | Update Monsanto BASF Collaboration BASF Roundtable Agricultural Solutions, August 8, 2011 4

Market development plant biotechnology

Global GM crop area Key facts 148 in million hectares; 1 ha = 2.47 acres Global GM crop area 140 continued to grow in 2010 120 Biotech crops cover about 10% of the cultivated land 100 CAGR 22%* In 2010, 15.4 million farmers 80 grew GM crops in 29 countries 60 Market expected to grow to 40 USD50 billion by 2025

20 11

0 1997 2000 2003 2006 2010

* CAGR 1997-2010 Source: ISAAA 2010 Continued strong growth

Strategy Partners Pipeline Platform 5

BASF Plant Science

Key facts

Plant Science Founded in 1998 Crop Sweden DNA Design LandMarks Metanomics Leading platform for Plant SunGene Ames Limburgerhof Iowa Biotechnology RTP North Midsouth Carolina 7 R&D and 13 field site centers Hawaii 750+ employees worldwide Puerto Rico Tamil Nadu Annual R&D spending ~€150 million Ceara

Sao Paulo St. Catarina

R&D sites Field site center

Global research network at biotech hotspots

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BASF Plant Science strategy

What? Increase crop yield through Plant Biotechnology

How? 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

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BASF Plant Science partnerships

Global GM crop area Partner Rank in million hectares; 1 ha = 2.47 acres market share - * Wheat* *** 1 Corn **** 1 Rice *** 1 Soybean Canola 2 Cotton 2 Sugar cane** 2 Sugar beet 1

* Wheat: very fragmented global market 0 50 100 150 200 250 ** Sugar cane: market data for Brazil only Total harvested crop area GM crop area (main producing country) *** Monsanto: including licensing business Source: USDA, ISAAA, BASF Plant Science **** Rice: hybrid rice market excluding China Strong partners for yield traits in major crops

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Plant Biotechnology pipeline Expected gross trait sales 2020 before partner share+: €1.9 bn.

Trait Discovery Stage I Stage II Stage III Stage IV total development gene 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* 2 1 generation Higher-yielding canola* Drought-tolerant corn* 2 1 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 feed Healthy fatty acids in canola Specialties Amylopectin potatoes 3 2 1 Herbicide-tolerant soybean***** Nematode resistant soybean* Input traits Fungal-resistant potato Fungal-resistant soybean New project Advancement 2010 + €1=USD1.3 Partners: *Monsanto **CTC ***KWS ****Bayer *****Embrapa Innovation yields results

Strategy Partners Pipeline Platform 9 EPA/DHA-omega-3 (Ω-3) fatty acid production in canola 10 EPA/DHA-omega-3 (Ω-3) fatty acid production in canola

New EPA/DHA Ω-3 food product launches Key facts 500 Growing consumer interest in products with EPA/DHA-Ω-3 fatty acids due to proven 250 health effects: arteriosclerosis Source: Frost and Sullivan prevention, decreasing risk of 2009, BASF 0 cardiovascular diseases 1994 1996 1998 2000 2002 2004 2006 2008 Current EPA/DHA-Ω-3 market EPA/DHA Ω -3 source in food product launches is expected to double to about Fish Algae USD2.8 bn. by end of decade 60% 18% Innovative production of EPA/DHA-Ω-3 fatty acid in canola Unknown/Other 22% Opportunity for plant-produced EPA/DHA-Ω-3 fatty acids

Strategy Partners Pipeline Platform 11 EPA/DHA-omega-3 (Ω-3) fatty acid production in canola

Elucidation of EPA/- Transfer into plants Product development in canola DHA-Ω-3 biosynthesis

Scientific groundwork EPA/DHA-Ω-3 Concerted expression of 10 genes produce jointly established with production of >20% EPA/DHA Ω-3 content in canola oil: academic partners >500 different gene – sustainable production Genes identified combinations tested in – cost leadership position and candidates for model and crop plants expression in plants Identification of most – ease of incorporation into food products selected from algal promising gene – efficient scale-up and fungal genomes combinations

World record in plant metabolic engineering

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Increased yield in rice 13

Increased yield in rice

Crop Global Global Gross Sales Value Key facts Production Crop Value* 10% Yield Increase** Rice is the world’s largest food (million MT/y) (billion USD) (billion USD) crop. Half of the world’s Corn 866 125 ~4 population consumes at least one meal of rice every day Wheat 664 124 ~4 Besides insect resistance and Rice 456 102 ~4 herbicide tolerance, yield Soybean 263 87 ~3 increase in rice offers an attractive value potential * Basis: corn USD144/MT, soybeans USD329/MT, wheat USD186/MT, rice USD224/MT Hybrid 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 crop from traditional varieties due to their ability to produce higher yields

Large market potential for increased yield in rice

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Key hybrid rice markets

North America Brazil India

Total rice area (M ac): 3 8 104

Hybrid market* 2010: 30% <1% 3% 2020: ~70% ~20% ~20%

20 20 20

15 15 15

0 0 0 Hybrid market (M ac) Hybrid market Hybrid market (M ac) Hybrid market Hybrid market (M ac) Hybrid market 2010 2020 2010 2020 2010 2020

* estimated percentage of total rice market (M ac): million acres Source: USDA, BASF Plant Science Focus on future key hybrid rice markets

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Increased yield in rice

Project goal Seed count Develop & commercialize hybrid rice seeds that offer yield advantages of 10% over conventional hybrid rice

First partnership signed Seed size Global non-exclusive license agreement with Bayer CropScience (BCS) BASF Plant Science: trait development, de-regulation BCS: introgression of traits in its hybrids, commercialization First product launches expected by end of the decade Panicle size

Target market India and selected countries in SE-Asia, USA, Brazil

New partnership provides market access Control BASF

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Discovery engine 17