Slide 1: Agricultural Solutions
Agricultural Solutions Michael Heinz Member of the Board of Executive Directors BASF Capital Markets Day, September 2024 0 BASF Capital Markets Day, September 26/27, 2024 | Agricultural Solutions
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the fu
Slide 3: Agricultural Solutions: For the love of farming, the biggest job on Earth
Agricultural Solutions For the love of farming, the biggest job on Earth €10.1 billion sales in 2023 (share of portfolio in billion € and %) Asia Pacific North America Others Soybean, 11% 1.1 40% 14% 1.4 Corn, Rice Cotton 0.3 38% 3% 3.9 South America, 4.0 Africa, 2.4 Regional Crop system Fruit & Mid
Slide 4: Agricultural Solutions is a strong earnings contributor and cash generator for BASF
Agricultural Solutions is a strong earnings contributor and cash generator for BASF Sales EBITDA bsi 2020 – 2023 Strong performance Billion € Billion € increase driven by… €1.8 billion1 12.0 2.5 Ø EBITDA bsi p.a. Integration of the 10.0 2.0 acquired 8.0 20%1 businesses 1.5 Ø EBITDA bsi margin 6.0 1.
Slide 5: Fundamentals remain strong despite the current market adjustment
Fundamentals remain strong despite the current market adjustment Historically best Adjustments in Positive outlook performance in 2023 downcycle in 2024 for the future Highest EBITDA bsi in the history Pressure on glufosinate- As an integrated agricultural of the segment ammonium margin soluti
Slide 6: We are well positioned in the agricultural market
We are well positioned in the agricultural market … as an integrated …operating in an ... which allows us to continue with agricultural solution provider… attractive market … value creation in 2024 – 2028 Our portfolio Market size1 EBITDA bsi Billion $ 140 + ~40% 102 Seeds & Traits Crop Protection 7
Slide 7: Our holistic approach addresses the needs of farmers in a changing market environment
Our holistic approach addresses the needs of farmers in a changing market environment, leading to profitable growth NEW NEW NEW We think in and are We drive future We implement We accelerate We focus our organized along profitability via differentiated implementing our activities crop systems innova
Slide 8: Crop system steering lets us think like our customers
1 Crop system steering lets us think like our customers – offering connected solutions to solve farmers’ challenges Farmers think in crop systems – We know the challenges of the farmers – So do we We solve them with holistic and connected offers Soybean Seeds & Traits Life cycle of Crop Protection C
Slide 9: Winning market share by focusing on four strategic crop systems
1 Winning market share by focusing on four strategic crop systems Crop system Soybean Wheat Fruit & Rice Soybean Corn Cotton Wheat Canola Sunflower Vegetables Fruit Vegetables Rice 41% 14% 19% 10% Share of the crop system as % of total market in 2023 Market Strong challenger Market leader #3 globall
Slide 10: Key trends in the industry drive the need for innovative and connected solutions
2 Key trends in the industry drive the need for innovative and connected solutions along the value chain Climate change Regulatory pressure Sustainable and Labor scarcity Sustainable feed, Additional and extreme limiting ability to regenerative and aging food, fiber and revenue weather manage pests,
Slide 11: Key trends in the industry drive the need for innovative and connected solutions
2 Key trends in the industry drive the need for innovative and connected solutions along the value chain Climate change Regulatory pressure Sustainable Labor Sustainable feed, Additional and extreme limiting ability to and regenerative scarcity and food, fiber and feed- revenue weather manage pests,
Slide 12: Innovation enables us to deliver value for every crop system
2 Innovation enables us to deliver value for every crop system Crop Protection to address Higher yielding stress- Digital Solutions for decision Sustainable Solutions to drive regulatory and resistance resistant Seeds & Traits making and automation agricultural transformation Soybean crop system Car
Slide 13: Innovation pipeline
2 Innovation pipeline Major market launch 2025 – 2030 Major market launch 2030+ Soybean Tirexor® Surtain Pavecto® Axalion® Seed NemasphereTM AxantTM xarvio® ONE Herbicide Fungicide Seed Seeds & traits xarvio® ONE crop treatment trait Flex/ digital tools SMART innovations innovation treatment innovat
Slide 14: Deep dive: xarvio digital farming solutions
2 Deep dive: xarvio® digital farming solutions An advanced product ecosystem to support customer growth Agronomic decision support Selling outcomes: Precision application with platform for optimization of seeds, The healthy field as guaranteed integrated hard- and software fertilizer and crop protec
Slide 15: Deep dive: We support the transformation to direct seeded rice
2 Deep dive: We support the transformation to direct seeded rice as a sustainable solution Key trends Our solutions Customer benefits Climate change and Effective non-GM herbicide-tolerant Improved production efficiency water scarcity weed management solutions to enable and profitability for g
Slide 16: We are connecting our innovation capabilities to transform agriculture
2 We are connecting our innovation capabilities to transform agriculture Above-average Outperforming in time Collaborative We connect technologies R&D efficiency to registration culture and develop solutions that help farmers leverage We use our resources, our We have a strong track record in We con
Slide 17: Differentiated steering will enable Agricultural Solutions to unlock further potential
3 Differentiated steering will enable Agricultural Solutions to unlock further potential Differentiated Corporate governance Separated SAP systems steering KPIs structure and process landscapes Lead KPIs were selected More decisions can be taken Future SAP system at based on industry practices: with
Slide 18: We accelerate the implementation of our strategy
4 We accelerate the implementation of our strategy Substantial price increases Improvement of Cost of goods sold optimization gross margin Product portfolio mix optimization Fixed cost management Fixed cost management Restructuring glufosinate-ammonium Rescoping hybrid wheat R&D program Focused R&D
Slide 19: We focus on key geographies
5 We focus on key geographies Investments Drive countries Advance countries Optimize countries Receive priority based on crop-system- Continue to improve, grow and advance Manage businesses with an efficient related market needs and achieve high level their businesses in size and profitability setup
Slide 20: Effective utilization of resources in Agricultural Solutions to ensure profitability targets are met
Effective utilization of resources in Agricultural Solutions to ensure profitability targets are met R&D Capex Working capital M&A transactions The agricultural market Asset-light strategy leading to Balance of value creation and Invest where we can demands constant investment low-triple-dig
Slide 21: Our strategic priorities
Our strategic priorities NEW NEW NEW NEW We think in and are We drive future We implement We accelerate We focus our organized along profitability via differentiated implementing our activities crop systems innovation steering strategy geographically ~40% ~10% ~50% Value creation share 1 Value creat
Slide 22: Our holistic approach addresses the needs of farmers in a changing market environment
Our holistic approach addresses the needs of farmers in a changing market environment, leading to profitable growth 1 We think in and are organized NEW EBITDA bsi along crop systems EBITDA bsi margin 2 above peer average (~23%) We drive future profitability via innovation NEW + ~40% EBITDA bsi incre
Slide 23: BASF - We create chemistry
O- BASF We create chemistry