150 Jahre Media Telephone Conference 2nd Quarter 2016 Ludwigshafen, July 27, 2016 Considerably higher earnings in chemicals business*; Oil & Gas significantly below prior-year quarter 14,483-24% 2nd quarter 19,078-16% 1,707 2,043 2nd quarter 28,691 3,613-27% 1st half -12% 1st half 39,145 4,113 2016 2015 * Our chemicals business includes the Chemicals, Performance Products and Functional Materials & Solutions segments. Higher volumes especially in the chemicals business* in the 2nd quarter could not offset lower prices and significant negative portfolio effects Considerable sales decline in the 1st half of 2016 due to lack of contributions from gas trading business as well as lower prices Earnings increased considerably in Performance Products and Functional Materials & Solutions in the 2nd quarter and 1st half of 2016 Considerable decline in earnings in Oil & Gas due to portfolio effects as well as lower prices in the 2nd quarter and 1st half of 2016 2 1
Further implementing the We create chemistry strategy Start-up of plant for the production of specialty amines in Nanjing, China Closing of divestment of the polyolefin catalysts business on June 30 Further development of coatings portfolio Acquisition of Chemetall, a global leader in metals surface treatment Divestment of industrial coatings business to AkzoNobel Acquisition of an automotive refinishing business in China 3 Outlook for BASF Group in 2016 confirmed Economic environment 2016 GDP growth: 2.3% Growth in industrial production: 2.0% Growth in chemical production*: 3.4% Exchange rate: $1.10 per euro Oil price (Brent): $40 per barrel Outlook for full year 2016 Considerable sales decline due to divestiture of gas trading and storage business expected at level slightly below 2015 * excluding Pharma 4 2
and earnings considerably down in Chemicals; Earnings in Performance Products significantly better - 15% 3,975 3,373 467-15% 548 considerably down year-on-year due to price developments Chemicals Lower margins result in considerable earnings decline Performance Products -6% 3,846 4,084 + 65% 503 304 considerably down, mostly due to price developments and divestitures Considerable improvement in EBIT before special items in all divisions 5 Earnings significantly higher in Functional Materials & Solutions, lower in Agricultural Solutions -4% 4,703 4,916 535 + 17% 458 Lower sales prices especially in precious metals trading lead to slightly reduced sales Functional Materials & Solutions Considerable increase in EBIT before special items in all divisions, especially Performance Materials Agricultural Solutions - 13% 1,459 1,678-12% 320 365 considerably below prior second-quarter level owing to volumes and currency development Decrease in earnings due to lower sales volumes 6 3
Considerable decline in sales and earnings in Oil & Gas Oil & Gas 617-83% - 78% 3,668 431 94 Considerable decline in sales and earnings due to lack of contributions from gas trading and storage business as well as lower oil and gas prices Increase in production by 9% in the continuing oil and gas business 7 2nd quarter 2016 reconciliation to net income billion % vs. Q2 2015 1,707-16 1.7 Special items Financial Taxes and result minority interests EBIT 1,718-16 Financial result -177-16 Income before taxes and minority interests 1,541-18 Net income 1,092-14 EBIT before special items 1.1 Net income vs. Q2 2015 in Earnings per share 1.19-0.19 Adjusted EPS 1.30-0.19 8 4
Cash flow in the 1st half of 2016 billion 3.3 Payments related to property, plant and equipment and intangible assets 1.4 Cash provided by operating activities of 3.3 billion (1st half of 2015: 5.1 billion) Payments related to property, plant and equipment and intangible assets of 2.0 billion (1st half of 2015: 2.8 billion) Free cash flow of 1.4 billion (1st half of 2015: 2.3 billion) Cash provided by operating activities Free Cash flow 9 5