Agricultural Solutions

3rd Quarter 2015

• Higher volumes and prices lead to considerable sales growth
• Earnings decline considerably due to higher costs

Compared with the previous third quarter, we raised sales considerably in the Agricultural Solutions segment through higher volumes and prices. The depreciation of local currencies in emerging markets led to negative currency effects (volumes 6%, prices 10%, currencies –10%).

Sales declined considerably in Europe, weighed down by lower volumes. In the fungicide business, volumes particularly fell in western Europe after the higher year-on-year demand we observed there in the first half of 2015. Volumes were down in the canola herbicides business due to increased competitive pressure.

Sales in North America rose considerably, mainly as a result of higher volumes and prices for fungicides and herbicides together with positive currency effects. In the fungicides business, volumes growth came primarily from a high fungal infection rate toward the end of the season; for herbicides, this development was due to increased demand for dicamba.

In South America, we posted considerable sales growth due to higher prices and volumes. In anticipation of further price hikes following the depreciation of local currencies, many customers put in their orders early. This trend more than compensated for negative currency effects and the impact of an increasingly difficult market environment.

Sales fell considerably in Asia, mainly as a result of a volumes decline in India. This was predominantly a consequence of the weaker business with soy herbicides brought about by a very dry growing season and increased competition from generic manufacturers.

Income from operations before special items declined considerably compared with the third quarter of 2014. This was largely the result of higher costs arising primarily from capacity increases and inventory reduction.