Dedicated Marketing Strategiesfor the Global AgChem MarketsMichael Heinz Group Vice PresidentGlobal Strategic MarketingAgricultural Products Division

August 2005

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Pipeline

BASFTheChemicalCompany

Strategy:Focus on high-value• Markets• Products• Innovation

ProfitabilityProfitability

CustomerSatisfaction

PipelineProfitability

CustomerSatisfaction

Pipeline

Success intoday‘s and tomorrow‘s

agro markets

BASF – Top Player in Agricultural Products

1 | Presence in the Right Segments

2 | Have the Right Technologies

3 | Successful Partnerships

4 | Growing the Future

4

Market Segmentation Drives Strategy Combination of Customer Needs, Crops and Countries

Focus on attractive market segments is key

Crops

Customer needs

Countries

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Global AgChem Market 2004

Source: Phillips McDougall, BASF

USD 6 bn

USD 9 bn

USD 11 bn

USD 9 bn

MarketSize

Strong biotech impact, emergence of fungicides

Soybeans, Sugar cane, Fruits & Vegetables

17%S. America

Fast population growthand rising buying power, change in dietary patterns

Rice, Fruits & Vegetables, Cotton, Sugar Cane

25%Asia

Biotech aversion, middle and eastern European countries joining EU

Cereals, Vines/GrapesFruits & Vegetables,Oilseeds

32%Europe

Strong biotech impact, emergence of fungicides

Corn, Soybeans, Cereals, Cotton

26%N. America

KeyCharacteristics

Major CropsShareRegion

Our focus is on North America, Europe, Japan and Brazil

6

0

10

20

30

40

50

60

Argentina USA Brazil China

020406080

100120140160

France Germany USA China0

50

100

150

200

Japan USA China India

Corn Soybeans

Wheat Rice

600

0

20

40

60

80

100

120

140

France USA Brazil China India

2003 Spending for Crop Protection USD/ha

Source: Global insight 2003

Focus on the Right Crops and Countries

Spending in high value markets is one determining factorfor BASF activities

7Source: Phillips McDougall, BASF data

Dev

elo

pm

ent

of

agro

chem

ical

mar

ket

2005

–20

09

Above averagemarket growth

expected

Below averagemarket growth

expected

Development of agrochemical market 1999 – 2004

Below average historical market growth

Above average historical market growth

Global AgChem Market by Crops

Crop market drivers

• Technology shifts

• Change in dietary patterns

• Renewable energies

Circle size = agrochemical market 2004

1-2 bn USD

2- 4 bn USD

>4 bn USD

Fruits &Vegetables

Soybeans

Rice

Corn

Cotton

Sugar

Non-Crop

RapeSeedCereals

Seed Treatment

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We Focus on Important Customer Needs

New Opportunities

Herbicides

Insecticides

Fungicides

Indications

éIncreased yield and quality requirements create opportunityfor plant health products

High value segments, e.g. seed treatment, termites

î -1% p.a.Only few unmet needs (glyphosategaps, cereal graminicide) limit demand for innovations

ì 2% p.a.Phase out of old products and resistance trigger high demandfor innovations

ì >2% p.a.New diseases and resistance trigger high demand for innovations

Long-Term Market Growth

Customer Needs

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Attractive Intra-Segment ShiftsHigh Growth Potential With Innovative Solutions

• Top-line insecticide market growth of 2% p.a.

• Regulatory pressure and resistance issues demand new modes of action

• New chemistry classes to grow by more than 5% p.a.

• Mature “old” chemistry being steadily substituted

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

F20

06F

2007

F20

08F

2009

F

Old Chemistry: Organochlorines, Organophosphates, Carbamates, Pyrethroids

New Chemistry:Neonicotinoids, Phenylpyrazoles,Benzoylurea, Semicarbamates, Others

Niche Chemistry: Acaricides, Nematicides, Insect Growth Regulators

Source: Phillips McDougall, BASF data, crop applications only

Example Insecticides

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We Hold Leading Positions in Attractive Market Segments

Fungicide EUR Opera®, Opus®

Fungicide USA Headline®

Fungicide BRA Opera®, Caramba®

Herbicides USA Guardsman® Max, Outlook ®

Fungicide BRA Opera®

Herbicides BRA Facet®, Clearfield ®, Aura®

Herbicides USA Newpath®, Facet®

Insecticides JAP Prince®

Fungicide Citrus ARG Comet®

Insecticide Grape EUR RAK®, Cascade®

Fungicide Coffee BRA Opera®, Opus®

Insecticide Brazil Standack®

Herbicides USA Raptor®, Extreme®

Fungicide BRA Opera®

Insecticide USA Termidor®

Insecticide AUS Termidor®

Insecticide USA Phantom®

Top 3 ranking brands

Cereals

Corn

Rice

Soybeans

SpecialtyCrops

Non CropUses

1 | Presence in the Right Segments

2 | Have the Right Technologies

3 | Successful Partnerships

4 | Growing the Future

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FormulationTechnology

New Active Ingredients

LeveragingTechnology

Verbund

All three dimensions of technology drive market success

We Have the Right Technology Mix

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2 new Fungicides 2 new Herbicides 1 HT Project*

Row Crops

Powerful Pipeline with New TechnologiesNew Active Ingredients for Areas of True Opportunity

Specialty Crops

Non Crop Uses

Seed Treatment

In Launch In Development

Boscalid (F) 2 new Fungicides 1 new Insecticide

Boscalid (F) 1 new Herbicide Chlorfenapyr (I) 1 new Insecticide

3 Fungicides

*Herbicide tolerant soybeans

F500 (F)Dimoxystrobin (F)Tritosulfuron (H)Picolinafen (H)Dimethenamid-P (H)

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Challenge for Soybean Growers Asian Soybean Rust

Asian Soybean Rust

• Major threat to growers

• High damage potential

Customers’ needs

• Excellent plant protection preventative and curative

• Peace of mind

• Enhancing quantity and quality of harvest

Market size in South America ~ USD 800 million. Additional potential in North America larger than USD 300 million.

Healthy Soybean Pods

Soybean Pods infected with Asian SoybeanRust

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Plant Health effecton soybean yield

Build on first-mover and market leader experience in South America

Leverage BASF knowledge on Plant Health™ benefits of strobilurins that go beyond disease control: plant growth efficiency and plant tolerance to stress

New opportunity for BASF and our customers

• Improved grower profitability

• Increased marketable crop yields

• Strengthens BASF´s portfolio in the US

We are Benchmark for Soybean GrowersF500® with Plant Health™ Effect

Plant Health™with

Objective: Identify new products with effectsbeyond classical crop protection

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US Soybean Growers Trust inBASF’s Competence

F500® – US market leader in cereals, peanuts, fruits and vegetables in less than two years

Headline® – product of choice in soybeans in first year

Plant Health™ – BASF develops new market segment in USA

9%

9%

13%

35%

15%

0% 10% 20% 30% 40%

Quadris (SYN)

Stratego (BCS)

Folicur(BCS)

Quilt (SYN)

Source: Stratus Survey April 2005

Soybean Fungicides Grower Purchase Intentions for 2005

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Boscalid – Innovative new mode of action activeingredient to control multiple fungal diseases in avariety of specialty crops like grapes, fruits & vegetables

Customers’ needs• Safeguarding quantity and quality of produce• Broad spectrum activity

BASF solution• New mode of action• Broad spectrum of fungal diseases controlled• New tool for resistance management

Boscalid: Flagship of Our GrowingSpeciality Crop Business

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Number of countries with Boscalid registered

0

5

10

15

20

25

30

35

40

2002 2003 2004 2005

We Set Benchmark in Specialty Crops

• Solution for a great variety of customer needs

• First registered in 2002

• Sales target >150 million EUR

• Registered in 36 countries

• Registered for over 100 crops

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Formulation TechnologyTailor-made Formulations for Specific Customer Needs

Formulation is the process of converting an active ingredient into an applicable plant protection product

Active Ingredient Formulation Performance

• crystalline • oily• resin-like• etc.

• suspension • concentrate • granule • etc.

• bioavailability • uptake by plant• photo stability• residual action• concentration• shelf life• etc.

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Customer need – improve original formulation,characterized by loss in efficacy over time, stainingof equipment/clothes and unpleasant odor

BASF solution:

AquaCap™ TechnologyInnovative, patented formulation technology (water-based microencapsulation)

Prowl H2O launched 2003• Reduced staining potential, virtually no odor• Enhanced persistence, i.e. long-lasting effect • Reduced use of organic solvents• Smart extension of product lifecycle • 15% of Pendimethalin sales in year two after

launch are patent-protected

We Develop Innovative FormulationsProwl H2O – Microencapsulated Pendimethalin Herbicide

Microencapsulated pendimethalin

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Leveraging Technology Verbund Fight Against Malaria – Deadly Threat to Millions

Malaria kills more than one million people and causes over 300 million acute illnesses per year

Customers’ needs

• Effective insect control

• Protection especially against malaria

• Ease of use, i.e. no retreatment of nets necessary

WHO recommends insecticide treated bed nets

WHO figures

Market potential of USD 200 million (institutional buyers)

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We Set Benchmark in Malaria ControlLong-Lasting Insecticide-Treated Nets

Technology Verbund at work:Agricultural Products Division:• Insecticide Technology

Specialty Chemicals Division:• Textile Technology

BASF Solution – Long-lasting Insecticide-Treated Nets• No need for retreatment• >95% knock-down of mosquitoes after 20 washes• BASF ensures quality by managing entire

value chain• Submission for WHO approval• Market launch expected in 2006

1 | Presence in the Right Segments

2 | Have the Right Technologies

3 | Entrepreneurial Partnerships

4 | Growing the Future

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Problem for Rice GrowersRed Rice Control

Grower problem: Red Rice weed

• Difficult to distinguish from crop

• Difficult to control

• High damage potential (up to 100% yield loss)

• Conventional herbicides not satisfactory

Customers’ need

• Safe and reliable solution to control red rice weed

Red Rice (Oryza Sativa)

Rice Crop

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BASF solution for rice growers

System of Newpath™ Herbicide + herbicide resistant CLEARFIELD® Rice

• Superior control of red rice and broad leaf weeds

• High reliability

• Ease of use

• High-yielding, non-GMO varieties

• Certified CLEARFIELD® quality

+

We Set Benchmark in Red Rice ControlCLEARFIELD® Rice Production System Introduced in 2002

=30% market share

in the US

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CLEARFIELD® – Network and alliance model to deliver trait technology to the farmer

BASF forms winning

partnerships

Best Trait Provider

Best Seed Partner/Dealer

Best DistributorBest Seed Breeder

Best Farmer

We Partner With the Best in Seed“Virtual Seed Company”

CLEARFIELD crops

• Canola

• Lentils

• Sunflower

• Rice

• Wheat

Peak Sales Potential200 million EUR(not included in pipeline)

1 | Presence in the Right Segments

2 | Have the Right Technologies

3 | Successful Partnerships

4 | Growing the Future

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2003: Seed treatment assets and technology acquired with “Fipronil Package” from Bayer

BASF Strategy

• Maximize the synergies of acquired product range

• Develop seed treatment solutions based on our existing innovative BASF active ingredient portfolio

• Use BASF Verbund to find and establish new innovations and high value solutions around the seed

Seed Treatment – A New Opportunity Driver for Long Term Profitable Growth

Protected seeds

Healthy plantsSales 2004 approx. 100 million EUR

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Total 2004: approx. USD 1.2 billion

Seed Treatment World Market Growth Opportunity for BASF

World market growing strongly with more than 5% p. a.

NorthAmerica

14%

Europe51%

Asia/Pacific

16%

SouthAmerica

14%

ROW5%

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Post-Harvest Freshness Preservation

• Water-based liquid polymer coating

• Preserves fruits and vegetables

• Very cost effective

• Commercially available and FDA approved

• Extends shelf-life and improvesquality of produce

Pre-Harvest Disease Control

• New mode of action fungicide

• Excellent performer in high value specialty crops like fruitsand vegetables on value determining diseases

• Safeguarding quantity and quality of harvest

Harvest

with Boscalid

We Protect the Crop Beyond the Farm Gate

Fruit & Vegetable Grower Fruit Company – Retailer – Consumer

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Key Messages

• BASF focuses on high-profit segments

• BASF brings leading technologies to the market

• BASF forms winning partnerships

• BASF is exploiting new growth opportunities

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We Set Benchmark inCustomer Satisfaction

Country

BASF in the eye of our customers:

Year 2004/5Year 2001USA #3 #1

Brazil n.a.France #5Germany #1 #1UK #2 #1Italy #2 #1Japan #9

#1#1

#7Source: Various independent customer satisfaction studiesStratus (USA), A Granja (Brazil), Eider (France), DLG (Germany), B2C (UK), CIF (Italy), Crecon (Japan)

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Disclaimer

This presentation contains forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections of BASF management and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict and are based upon assumptions as to future events that may not prove tobe accurate.

Many factors could cause the actual results, performance or achievements of BASF to be materially different from those that may be expressed or implied by such statements. Such factors includethose discussed in BASF’s Form 20-F filed with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking statements contained in this presentation.

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