Segment profile The Agricultural Solutions segment consists of the Crop Protection division. We develop and produce innovative solutions for the improvement of crop health and yields, and market them worldwide. Indications and sectors Fungicide Protecting crops against harmful fungi Herbicides Reducing competition from weeds for water and nutrients Insecticides Combating insect pests in agriculture and beyond Functional Crop Care Biological crop protection, seed treatment, polymers and colorants Sales Factors influencing sales Income from operations before special items(million €) How we create value – an example Revysol® BASF’s new blockbuster fungicide Value for BASF >€1 billion Peak sales potential Value for our customers and the environment up to 100 times Stronger activity than existing triazoles Revysol® will play a key role in our fungicide portfolio in many crops for farmers around the world. We are driving forward the approval process in all regions – in more than 60 countries and for more than 240 crops. The first products based on Revysol® are to be launched on the market for the 2019 growing season following registration with the relevant authorities. This will give farmers a new active ingredient that offers exceptional biological performance and provides additional resistance management opportunities in agriculture. We are aiming for a peak sales potential of over €1 billion with Revysol®. Revysol® is an innovative fungicide active ingredient from the triazole chemical class. It binds to the fungus enzyme up to 100 times more strongly than the products currently on the market, making it significantly more effective. Farmers can thus also safely manage those plant diseases that have become resistant to the triazoles used in the past. At the same time, Revysol® has better toxicological properties than other standard triazoles and is another important building block for sustainable agriculture. Farmers around the world will benefit from Revysol®-based products, which safeguard and improve yield quality. Strategy Long-term innovation strategy ensures future growth Development of solutions that go beyond conventional crop protection Agreement on acquisition of significant parts of Bayer’s seed and non-selective herbicide businesses Natural resources such as land and arable area are limited, while the world’s population and its demand for food continue to grow. This means that farmers around the world face the challenge of increasing their crop yields with limited resources. We offer our customers innovative solutions combined with practical, down-to-earth advice so that they can produce more – and more nutritious – food as efficiently as possible. We are committed to the responsible treatment of our products and the preservation of a healthy environment. We also constantly invest in our development pipeline to offer our customers an increasingly wide range of integrated solutions for crop protection and beyond. Our research and development activities range from solutions for guarding plants against fungi, insects and weeds, to seeds and improved soil management, and supporting plant health. For example, the Functional Crop Care business unit provides products for improving seeds and innovations for better nitrogen and water management in soil. It also offers biological and chemical technologies that make plants better able to withstand stress factors like heat, cold and nutrient deficiency. The success of our customers depends on many factors such as weather, plant health, soil conditions and prices for agricultural products. As a result, modern farmers have to analyze more and more data of increasing complexity to make the right cultivation decisions. BASF’s innovative digital applications help our customers to use these data to their advantage as a basis for making better decisions, ensuring more efficient and sustainable resource allocation. One example of our strategic investments in digital solutions is the acquisition of ZedX Inc., Bellefonte, Pennsylvania, in May 2017. ZedX is a leader in the development of information technology products and services for the agriculture sector. The company develops agronomic weather, crop and pest models that can rapidly translate data into insights for more efficient agricultural production. Our aim is to offer farmers a wider range of solutions going forward to even better meet the growing demand for high-quality seeds as well as chemical and biological crop protection. We therefore signed an agreement to acquire significant parts of the seed and non-selective herbicide businesses from Bayer AG, Leverkusen, Germany, in October 2017. The transaction is expected to close in the first half of 2018, subject to the closing of Bayer’s acquisition of Monsanto and approval by the relevant authorities. The planned acquisition includes attractive businesses in important field crops and markets. With the acquisition, we aim to expand our crop protection business, strengthen our herbicide portfolio and enter the seed business in key agricultural markets. It will also strengthen our global innovation potential. The agreement covers Bayer’s global glufosinate-ammonium non-selective herbicide business, commercialized under the Liberty®, Basta® and Finale® brands, as well as its seed businesses for key row crops in selected markets. These include canola hybrids in North America under the InVigor® brand using the LibertyLink® trait technology, as well as the oilseed rape business mainly in the European markets, cotton in the Americas and Europe, and soybean in the Americas. The agreed transaction also includes Bayer’s trait research and breeding capabilities for these crops and the LibertyLink® trait and trademark. back next
