Digital Transformation in the ag Industry Paris, June 18th Elmar Groiss, Head of Information Management BASF Crop Protection

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1 Digital Transformation in the ag Industry Paris, June 18th 2014 Elmar Groiss, Head of Information Management BASF Crop Protection 1

2 Average wheat yield Germany to / hectare Source: Metz Rainer, 2005; proplanta.de Yield level increased over the last 160 years Year 2

3 Technologies Impacting yield and productivity to / hectare 9 8 Precision Farming 7 6 Data + Information Biotechnology Breeding Fertilizer Crop protection Machinery Source: Metz Rainer, 2005; proplanta.de Fast adoption of digital technologies is the key yield and productivity driver for farmers Year 3

Crop Protection 2020 Strategy & Vision Bringing

and farmers Crop protection Solutions are the

protection Agricultural Solutions Traits & seed

Sustainability IT is an essential part, no longer an

4 Crop Protection 2020 Strategy & Vision Bringing sustainable and innovative solutions to agriculture and farmers Crop protection Solutions are the foundation for success Innovation beyond crop protection Agricultural Solutions Traits & seed partnerships People Business Excellence Farmer Focus Sustainability IT is an essential part, no longer an enabler Farmer Needs, Innovation and Business Excellence are the main focus areas for IT 4

Digital Transformation Why is it so important for the ag industry and us?

+ = Our top in class crop protection products cannot be digitalized, but can be

skills We are already very successful innovating in (digital) silos CP Product

5 Digital Transformation Why is it so important for the ag industry and us? Digital Transformation is an essential part of our 2020 Strategy Solutions for Farmers + = Our top in class crop protection products cannot be digitalized, but can be enriched with valuable information and knowledge Building on our key strength and skills We are already very successful innovating in (digital) silos CP Product Information Knowledge Solution connecting digital silos is the next step Sustainable and Innovative solutions for Farmers 5

6 Process Digitization Digital Transformation Elements of execution Customer Experience Social Media Mobile Analytics Data Integration We are integrating and analyzing BASF s insight/expertise + Partner Data + Open available Data to foster research, innovation and creativity We are focusing investments for example on precision farming and track & trace projects, to combine local, social, mobile and sensor capabilities Sensors We are filling the internal skill gaps in order to sustain the digital transformation Digital Transformation in combination with BigData is the driver for new Business Models 6

7 Standards are key in the (digital) World Agricultural Examples Tyre Distance Three point Hitch Hydraulics Isobus Data Standards Open Data are next in line BASF Crop Protection is actively working in standardization organizations (AgGateway, CRYSTAL, ) Source: John Deere, Wikipedia, 7

and rights of the owners 2. Country specific laws will be respected 3.

8 Top Priority for BASF Crop Protection Data Privacy / Data Security / IT Security 1. Data belongs to the person or company who creates or collects the data we respect core competencies and rights of the owners 2. Country specific laws will be respected 3. Best in Class technologies and Best Practices will be adopted and used 4. Transparency is Key Key Question to be answered: What is in it for Farmers? 8

Example Smart IT solutions for farmers Grower needs Agronomic How to increase yields sustainably Commercial How to run farm enterprise successfully Strategic pillars Grow Smarter Market Smarter

society It's a holistic solution that will give farmers exactly the support they need for effective decision-making where and when needed. Dr.

9 Example Smart IT solutions for farmers Grower needs Agronomic How to increase yields sustainably Commercial How to run farm enterprise successfully Strategic pillars Grow Smarter Market Smarter The Agricultural Information Technology Initiative (agit) will enable farmers to make the right decisions based on integrated data and mobile access Emotional How growers see themselves in society It's a holistic solution that will give farmers exactly the support they need for effective decision-making where and when needed. Dr. Matthias Nachtmann, Project Lead agit, BASF Crop Protection Live Smarter Benefit: Farmers will get support to maximize their results in the agronomic, commercial and emotional dimensions of farming Farmers will be supported in all dimensions of farming 9

recalls efficiently, provide information and combat product piracy Process optimization to

10 Example Track & Trace Introduction of digital serialization Documentation of the product flow from production through the distribution channel to the end user Helps to manage selected recalls efficiently, provide information and combat product piracy Process optimization to create transparency and traceability Track & Trace enables a digital documentation of the product flow 10

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FOR RESOURCEFUL GROWERS SEEKING TO ENHANCE PRODUCTIVITY

FOR RESOURCEFUL GROWERS SEEKING TO ENHANCE PRODUCTIVITY AGRIEDGE EXCELSIOR AgriEdge Excelsior is an exclusive whole-farm management program for Syngenta customers. It has helped growers maximize and sustain