Value. We add value as one company. Magdalena Moll Amber Usman Investor Relations BASF. Chemicals. Performance Products. Oil & Gas

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1 Magdalena Moll Amber Usman Investor Relations BASF BofA Merrill Lynch China Conference 2013 Chemicals Beijing November 8, 2013 Oil & Gas Value Performance Products Agricultural Solutions Functional Materials & Solutions We add value as one company

2 Cautionary note regarding forward-looking statements This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. BASF has based these forward-looking statements on its views and assumptions with respect to future events and financial performance. Actual financial performance could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. The information contained in this presentation is subject to change without notice and BASF does not undertake any duty to update the forwardlooking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. BASF Capital Market Story November

We create chemistry for a sustainable future Positioning Performance Perspective

Kuantan, Malaysia Verbund site The #1 chemical company 72.1 billion sales, 6.

6 integrated Verbund sites, production in 60 countries 10 years of strong sales

annual dividend increase, >3% yield in every single year*** Chemistry as an

investments emerging markets Ambitious financial targets BASF Capital Market Story

3 We create chemistry for a sustainable future Positioning Performance Perspective Geismar, USA Freeport, USA Ludwigshafen, Germany Antwerp, Belgium Nanjing, China Kuantan, Malaysia Verbund site The #1 chemical company 72.1 billion sales, 6.6 billion EBIT bsi in 2012* #1-3 in >75% of businesses, present in >200 countries 6 integrated Verbund sites, production in 60 countries 10 years of strong sales and earnings growth 19% average annual total shareholder return** 16% average annual dividend increase, >3% yield in every single year*** Chemistry as an enabler BASF has superior growth opportunities: sustainable innovations investments emerging markets Ambitious financial targets BASF Capital Market Story November 2013 * Restated numbers, reflecting IFRS 10/11 changes ** October 2003 September 2013 *** for

4 BASF today a well-balanced portfolio Total sales 2012: 72.1 billion* Percentage of sales 2012** * Restated numbers, reflecting IFRS 10/11 changes, new segment structure effective Jan. 1, 2013 BASF Capital Market Story November 2013 ** Not depicted here: ~5% of Group sales reported as Other 4

5 Business review BASF strategy & growth targets Strategic levers BASF Capital Market Story November

6 Robust 3 rd quarter 2013 for BASF Business performance Q3 13 vs. Q3 12 Q1-Q3 13 vs. Q1-Q3 12 Sales 17.7 billion +1.5% 55.8 billion +3% EBITDA 2.5 billion +16% 7.8 billion (1%) EBIT before special items 1.7 billion +15% 5.7 billion +6% EBIT 1.7 billion +20% 5.6 billion (1%) Net income 1.1 billion +18% 3.7 billion (4%) Reported EPS % 4.03 (4%) Adjusted EPS % % Operating cash flow 2.0 billion +21% 6.0 billion +19% Sales development Period Volumes Prices Portfolio Currencies Q3 13 vs. Q3 12 6% (1%) 1% (5%) BASF Capital Market Story November

7 Strong free cash flow generation Free cash flow* in billion ** Q1-Q * Cash provided by operating activities less capex (in 2005 before CTA) BASF Capital Market Story November 2013 ** 2009 adjusted for re-classification of settlement payments for currency derivatives 7

Delivering attractive shareholder returns Dividend per share in 1.50 CAGR 16% 1.95 1.95 1.70 2.20 2.50 2.60 Dividend payments Dividend of 2.

00 Dividend yield above 3% in any given year since 2002, total payout almost 17 billion 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Dividend yield*

8 Delivering attractive shareholder returns Dividend per share in 1.50 CAGR 16% Dividend payments Dividend of 2.60 per share for : Average annual dividend increase of 16% Attractive dividend yield of 3.7% in 2012** Dividend yield above 3% in any given year since 2002, total payout almost 17 billion Dividend yield* 3.1% 3.2% 3.1% 4.1% 3.8% 7.0% 3.9% 3.7% 4.6% 3.7% BASF Capital Market Story November 2013 * Dividend yield based on share price at year-end ** Based on BASF share price of on Dec. 28,

9 Outlook 2013 Outlook 2013 We do not anticipate an acceleration of global economic growth in the 4 th quarter of 2013 For the full year, BASF confirms its outlook: We strive to exceed the record levels in sales and EBIT before special items in a challenging economic environment Our focus on growth markets and innovation, in combination with our measures to optimize our portfolio and to improve operational excellence, will contribute to this We aim to earn a high premium on cost of capital in 2013 Assumptions 2013 GDP: Industrial production: Chemical production: +2.0% (unchanged) +2.7% (unchanged) +3.1% (unchanged) US$ / Euro: 1.30 (unchanged) Oil price (US$ / bbl): 105 (unchanged) BASF Capital Market Story November

10 Delivering consistent, long-term value Average annual performance with dividends reinvested Last 10 years October 2003 September 2013 Last 5 years October 2008 September % BASF +21.0% +5.0% Euro Stoxx % +10.2% DAX % +11.3% MSCI World Chemicals +9.5% BASF Capital Market Story November

11 Business review BASF strategy & growth targets Strategic levers BASF Capital Market Story November

12 Key financial targets 2015 / 2020 are ambitious Growth targets Profitability targets Grow at least 2 percentage points above chemical production Earn a premium on cost of capital of at least 2.0 billion on average p.a Sales ~ 80 billion EBITDA ~ 14 billion EPS ~ Sales ~ 110 billion EBITDA ~ 22 billion BASF Capital Market Story November

13 We create chemistry in Asia Pacific: 2020 targets Market 25 billion sales Innovation ~3,500 R&D staff Portfolio > 2 billion sales from new biz and acquisitions Investment 75% OMP ratio People ~9,000 new jobs Excellence 1 billion cost savings BASF Capital Market Story November

14 Business review BASF strategy & growth targets Strategic levers Portfolio development Market approach Innovations for a sustainable future Investments Acquisitions Operational excellence BASF Capital Market Story November

15 Portfolio development Moving downstream towards customer industries Classical Chemicals Customized Products Functionalized Materials & Solutions 2001 in % of sales** Chemical Industry ~ 50% First customer industries* ~ 50% 2010 in % of sales** ~ 40% ~ 60% 2020 in % of sales** ~ 30% ~ 70% * Agriculture, Construction, Consumer Goods, Health & Nutrition, Electronics, Energy & Resources, Transportation BASF Capital Market Story November 2013 ** Sales excluding Oil & Gas. Targets were published on November 29,

16 Portfolio development Towards more market driven and innovative businesses Acquisitions Engineering plastics Electronic chemicals Catalysts Construction chemicals Water-based resins Pigments Plastic additives Oil & Gas Personal care & food Battery materials Functional crop care Omega-3 fatty acids BASF core business Selected transactions 2001 today* Strong partnerships Gazprom Statoil Monsanto Petronas Shell Sinopec Total Pharma Fibers Divestitures Printing systems Polyolefins Polystyrene Americas Agro generics Vitamins premix Fertilizers Styrenics (transferred into Styrolution JV on Oct. 1, 2011) Construction equipment, flooring systems ~ 16bn sales ~ 10bn sales** BASF Capital Market Story November 2013 * Only closed deals have been considered ** Without Styrenics 16

17 Portfolio development Asia Pacific Towards more market driven and innovative businesses Selected transactions with relevant impact in Asia Pacific* Acquisitions Plastic additives, Pigments (Ciba) Mining Safety Solutions (Hock) Catalysts (Engelhard) Care Chemicals (Cognis) Construction Chemicals (Degussa) Electronic Chemicals (Merck, Novolyte) Health & Nutrition (Takeda, Pronova) Crop Protection (Becker Underwood) ~ 3 billion sales in Asia Pacific BASF Core Business Selected Transactions 2001 Today* Strong Partnerships Petronas Sinopec Shell Hua Yi Heesung Sumitomo Metal Mining Huntsman Divestitures Pharma (Knoll) Printing systems Polyamide fibers (Honeywell) Animal nutrition premix business Styrenics (transferred into Styrolution JV on Oct 1, 2011) ~ 0.5 billion sales** in Asia Pacific BASF Capital Market Story November 2013 * only closed deals have been considered ** without Styrenics 17

18 Market approach Cross-divisional customer industry approach BASF sales by first customer industry* Bubble Size: BASF divisional sales by first customer industry (2012)* / ** Consumer goods > 15 % Transportation > 15 % Construction > 10 % Energy & Resources < 10 % Monomers Dispersions & Pigments Care Chemicals Coatings Construction Chemicals Petrochemicals Intermediates Performance Chemicals Paper Chemicals Catalysts Performance Materials BASF Capital Market Story November 2013 * Excluding Oil & Gas, Crop Protection and Other ** Nutrition & Health sales predominantly into Health & Nutrition market 18

19 Strong partnership with Hyundai.Kia success of our cross-divisional approach Coatings, Pigments Headliner Dashboard Steering wheel Headrests Roof module Hatrack Door side part ABS cable Window encapsulation Air intake manifold, charge-air lines Battery materials Catalysts Fuel additives Lubricants, engine coolants Engine encapsulation Air-filter housing Oil pan Carpet, Floor mats Seats, handrests, armrests Leather and textile chemicals Cross beam Spoiler, lower bumper stiffener Brake fluids Wheel rim Suspension: Jounce bumper, Top mount, Coil Spring isolator BASF Capital Market Story November

20 Strong commitment to innovation Innovations for a sustainable future R&D expenditures in billion 2, , , , , Corporate Research 23% Oil & Gas 2% Agricultural Solutions 25% Functional Mat. & Sol. 20% Performance Products 20% Chemicals 10% Key facts 1.7 billion R&D expenditures in 2012, further increase planned for 2013 ~10,500 employees in R&D ~3,000 projects Research Verbund: About 1,950 partnerships with universities, start-ups and industry partners Target 2015 and 2020: 10 billion in sales from innovations younger 5 years; 30 billion in sales from innovations younger 10 years BASF Capital Market Story November

21 Expand research capabilities in Asia Pacific with new R&D centers R&D Center Korea (2013) Focus: electronics R&D Center Japan (2013) Focus: battery materials Innovation Campus Asia Pacific, Shanghai (2012) Focus: polymers & materials R&D Center Singapore (2007) Focus: water, membrane, oilfield R&D Center Australia (2012) Focus: mining Innovation Campus Asia Pacific, India (in planning) Focus: life science, agro BASF Capital Market Story November

Food & Nutrition Quality of life Chemistry as

Construction Consumer Goods Health & Nutrition

Batteries for mobility Heat management Enzymes

care Wind energy Water solutions Technology

22 BASF growth fields focus on enabling technologies Resources, Environment & Climate Food & Nutrition Quality of life Chemistry as enabler Customer industries Transportation Construction Consumer Goods Health & Nutrition Electronics Agriculture Energy & Resources Batteries for mobility Heat management Enzymes Medical Organic electronics Plant biotechnology E-Power management Growth Fields* Lightweight composites Functional crop care Wind energy Water solutions Technology fields Raw Material Change Materials Systems & Nanotechnology White Biotechnology BASF Capital Market Story November 2013 * Including growth fields still under evaluation 22

Battery materials will play a key role in advancing electromobility of the future Focus Advanced cathodes and electrolytes development for lithium-ion batteries, as well as next-generation battery

million globally (~ 350 million in Asia Pacif.

23 Battery materials will play a key role in advancing electromobility of the future Focus Advanced cathodes and electrolytes development for lithium-ion batteries, as well as next-generation battery systems Business potential 2020 Overall market size: > 20 billion globally (~ 16 billion in Asia Pacific) SRM size: > 5 billion globally (~ 4 billion in Asia Pacific) BASF sales potential: > 500 million globally (~ 350 million in Asia Pacif.) Activities Acquisition of Novolyte Technologies (April 2012), including production facility, Application Technology Center in Suzhou, China New electrolytes R&D laboratory and Application Technology Center for Battery Materials starting up in Amagasaki, Japan, 2013 Ongoing collaboration with leading universities, institutes and industry partners, as well as battery producers and OEMs Target Position BASF as a leading global solution provider for battery and cell manufacturers BASF Capital Market Story November

24 Investments will boost future organic growth Future investments in billion ~ % 35-45% ~20% Total investments Thereof investments in emerging markets BASF Capital Market Story November

25 Major investment projects Asia Pacific MDI plant Location: Chongqing, China Planned start-up: 2014 Investment: ~ 860 million Expansion of Verbund site Location: Nanjing, China Feasibility studies ongoing Investment: up to US$1 billion (100%) Isononanol (INA) plant Location: Maoming, China Planned start-up: 2015 Aroma ingredients complex Location: Kuantan, Malaysia Planned start-up: 2016 Investment: US$500 million (100%) Polyurethanes, Surfactants & Dispersions Location: Dahej, India Planned start-up: 2014 Investment: 150 million BASF Capital Market Story November

26 Implement 4-5 billion investment plan to move closer to the customers Current investment projects Korla Tibet Production clusters Selected production sites Qinghai Gansu Sichuan Chongqing Yunnan Inner Mongolia Ningxia Shaanxi Guizhou Guangxi Shanxi Hainan Liaoning Beijing Tianjin Hebei Henan Hubei Hunan Shandong Nanjing Jiangxi Anhui Maoming Fujian Heilongjiang BASF Capital Market Story November Zhejiang Jilin Rudong Shanghai Taiwan Kaohsiung Since 1992 BASF and partners invested ~ 5 billion in China Until 2020 BASF and partners will invest 4-5 billion in China Major current projects: Nanjing: Acrylic acid (BASF-YPC) SAP Chongqing: MDI Korla: Butanediol, PolyTHF Shanghai: Coatings Shanghai: Catalysts Maoming: Isononanol Kaohsiung: Catamold Rudong: Agrochemicals

27 BASF aims to further increase its sales share from emerging markets Developed markets* Emerging markets 2001 in % of sales ( 28 bn**) ~ 78% ~ 22% 2012 in % of sales ( 62bn**) ~ 65% ~ 35% 2020 in % of sales** ~ 55% ~ 45% *BASF definition: Developed markets include EU15, Norway, Switzerland, North America, Japan, Australia, New Zealand ** Sales excluding Oil & Gas BASF Capital Market Story November

28 Acquisitions will contribute to profitable growth in the future We want to acquire businesses which Generate profitable growth above the industry average Are innovation-driven Offer a special value proposition to customers Provide a minimum return on investment of 8% p.a. after tax Are EPS accretive by year three at the latest Reduce earnings cyclicality Strategic acquisition criteria Financial acquisition criteria BASF Capital Market Story November

29 Operational excellence programs STEP program on track: ~ 1 billion earnings contribution by 2015 Annual earnings contribution in million Former cost saving programs NEXT STEP NEXT Program NEXT program successfully completed Annual earnings contribution of ~ 1 billion achieved in 2012 STrategic Excellence Program STEP Targeted annual earnings contribution of ~ 1 billion by end of 2015 Project timeline: Program is on track Measures to optimize processes and structures in all regions, e.g. manufacturing, maintenance supply chain engineering, best-cost country sourcing One-time costs & investments: ~ 1 billion BASF Capital Market Story November

Regional excellence initiative will drive Asia Pacific s profitable growth Functional

30 Regional excellence initiative will drive Asia Pacific s profitable growth Functional Excellence Structural Excellence Investment Process Excellence Operational Excellence Shared services (Finance, IS/IT, etc.) Procurement Supply chain Functional efficiency initiatives BU efficiency targets (e.g. sales efficiency) Structural Excellence Program Savings in investment costs and depreciation Raw material savings through yield increases Energy and utilities Production efficiency gains 1 billion cost savings by 2020 BASF Capital Market Story November

31 Appendix 1: Q Reporting BASF Capital Market Story November

Important corporate developments Restructuring in Pigments business Optimization of global production network

biotechnology Cash offer of 4 US dollars per share Offer expires on October 31, 2013 Enterprise value ~62 million US

Transaction completed July 31, 2013 Increased production from 3,000 to ~40,000 boe per day in Norway Compensation

32 Important corporate developments Restructuring in Pigments business Optimization of global production network Reduction of 650 positions worldwide Investment of 250 million in production and R&D Cash offer for Verenium enzyme biotechnology Cash offer of 4 US dollars per share Offer expires on October 31, 2013 Enterprise value ~62 million US dollars Acquisition will strengthen BASF s footprint in the enzyme growth market Transaction with Statoil completed Transaction completed July 31, 2013 Increased production from 3,000 to ~40,000 boe per day in Norway Compensation payment of ~781 million US dollars* * Euro/dollar exchange rate July 31, 2013: 1 = $ BASF Capital Market Story November

33 Chemicals Pressure on volumes and margins Q3 13 segment sales (million ) vs. Q3 12 EBIT before special items (million ) Intermediates 700 (7%) 4,224 (8%) Monomers 1,599 (11%) Petrochemicals 1,925 (6%) Q3 Q4 Q1 Q2 Q Sales development Period Volumes Prices Portfolio Currencies Q3 13 vs. Q3 12 (2%) (3%) 0% (3%) BASF Capital Market Story November

34 Performance Products Growth in volumes and earnings Q3 13 segment sales (million ) vs. Q3 12 EBIT before special items (million ) Care Chemicals 1,209 (1%) Paper Chemicals 365 (8%) 3,939 (1%) Performance Chemicals 896 (3%) Nutrition & Health % Dispersions & Pigments 929 (2%) Q3 Q4 Q1 Q2 Q Sales development Period Volumes Prices Portfolio Currencies Q3 13 vs. Q3 12 6% (3%) 1% (5%) BASF Capital Market Story November

35 Functional Materials & Solutions Sound overall demand, especially in automotive Q3 13 segment sales (million ) vs. Q3 12 EBIT before special items (million ) Performance Materials 1,669 +5% 4,439 +3% Construction Chemicals 576 (9%) Catalysts 1, % Coatings 728 (5%) 0 Q3 Q4 Q1 Q2 Q Sales development Period Volumes Prices Portfolio Currencies Q3 13 vs. Q3 12 8% 2% (1%) (6%) BASF Capital Market Story November

36 Agricultural Solutions Sales growth despite pronounced currency headwinds Q3 13 segment sales (million ) vs. Q3 12 EBIT before special items (million ) ,008 1, Q3 Q Q3 Q3 Sales development Period Volumes Prices Portfolio Currencies Q3 13 vs. Q3 12 8% 4% 3% (10%) BASF Capital Market Story November

37 Oil & Gas Substantially higher net income Q3 13 segment sales (million ) vs. Q3 12 EBIT bsi/net income (million ) Natural Gas Trading 2, % 3, % Exploration & Production % Q3/2012 Net Income Q3/2013 Net Income Exploration & Production Natural Gas Trading Net income Sales development Period Volumes Prices/Currencies Portfolio Q3 13 vs. Q % (2%) 5% BASF Capital Market Story November

38 Appendix 2: Asia Pacific Business Review BASF Capital Market Story November

39 BASF in Asia Pacific Mongolia China Pakistan Bangladesh Thailand India South Korea Taiwan Hong Kong Vietnam Philippines Malaysia Sri Lanka Singapore Indonesia Japan Customers from 17 countries More than 100 production sites 148 sales offices* ~16,400 employees, thereof 800 R&D staff Sales in 2012: ~ 12.5 billion** EBITDA in 2012: 1.2 billion*** Australia Regional headquarters Verbund site Production site R&D/Technical center Asia Pacific service center New Zealand * Some sites are not shown due to scale. Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50%. ** Sales by location of customer *** EBIT by location of company All figures for 2012 have been adjusted to changes in IFRS 10 & 11 BASF Capital Market Story November

Sales and profitability in Asia Pacific Sales by location of customer billion 20 EBITDA by location of company billion 2 +11% p.a. 1.7 1.6 +14% p.a. 12.5 14.4 14.9 12.5* 1.2 1.4 1.2* 10 5.3 6.5 8.1 9.

40 Sales and profitability in Asia Pacific Sales by location of customer billion 20 EBITDA by location of company billion 2 +11% p.a % p.a * * r r BASF Capital Market Story November 2013 * 2012r figures restated according to changes in IFRS 10 & 11 40

41 Sales Asia Pacific 2012 Sales by segment Sales by sub-region Agricultural Solutions 4% Performance Products 27% 12.5 billion Other 8% Chemicals 31% Functional Materials & Solutions 30% South Korea 8% South Asia 11% Japan 13% ASEAN 22% 12.5 billion Australia, New Zealand (ANZ) 4% Greater China 42% South Asia: India, Pakistan, Bangladesh, Sri Lanka ASEAN: Singapore, Philippines, Vietnam, Thailand, Indonesia, Malaysia BASF Capital Market Story November 2013 Figures for 2012 adjusted to changes in IFRS and new segment structure as of January 1, Sales to third parties by location of customers 41

42 BASF will generate highest sales growth in Greater China, South Asia and ASEAN Sales vs. SRM growth by sub-region 16 BASF s annual sales growth (%) 8 3 rd party net sales in 2010 Greater China ASEAN Japan South Asia South Korea ANZ SRM = Strategic Relevant Market SRM growth (%) BASF Capital Market Story November

Task forces will explore untapped markets in Asia Pacific Myanmar Mongolia Laos Mongolia (GDP: US$10.

9 billion) Low cost labor Agriculture (livestock & crop) Cambodia Cambodia (GDP: US$14.

4 million 2020: 77.8 million Myanmar (GDP: US$54.0 billion) Natural resources (e.g.

43 Task forces will explore untapped markets in Asia Pacific Myanmar Mongolia Laos Mongolia (GDP: US$10.2 billion) Natural mineral & mining industry Construction Agriculture Laos (GDP: US$8.9 billion) Low cost labor Agriculture (livestock & crop) Cambodia Cambodia (GDP: US$14.4 billion) Low cost labor Textile industry Agriculture GDP (nominal) in 2012 Total Population 2012: 72.4 million 2020: 77.8 million Myanmar (GDP: US$54.0 billion) Natural resources (e.g. gas) Newly opening attractive market BASF Capital Market Story November 2013 Source: GDP: United Nations; Mongolia sales: WASP; Cambodia, Laos, Myanmar: ASEAN sub-region 43

44 Appendix 3: others BASF Capital Market Story November

45 Investments: Capex for organic growth* develops in line with business growth Index Revenue (2001 = 1) Ratio capex / depreciation Capex as percentage of sales 2,5 9% 2 1,5 1 0,5 0 Revenue Capex as % of sales Ratio capex/ depreciation % 7% 6% 5% 4% 3% 2% 1% 0% BASF Capital Market Story November 2013 * Without acquisitions 45

46 BASF Capital Market Story November

Cautionary note regarding forward-looking statements

Cautionary note regarding forward-looking statements This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated