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BASF Capital Market Story November 2015 1

150 years 150 years

We add value as one company

150 years

Kurt Bock Chief Executive Officer Roadshow Zurich November 30, 2015


150 years 150 years

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 forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.


150 years 150 years

Chemistry as an enabler BASF has superior growth

opportunities: – sustainable innovations – investments – emerging markets

The #1 chemical company €74 billion sales, €7.4 billion

EBIT bSI in 2014 #1-3 in ~70% of businesses,

in almost all countries 6 integrated Verbund sites,

production in 60 countries

A track record of strong sales and earnings growth

12% average annual dividend increase, >3% yield in every single year*

~€68 billion market capitalization Oct. 2015

Perspective

* For 2004-2014

Ludwigshafen, Germany

Antwerp, Belgium

Nanjing, China

Kuantan, Malaysia Geismar,

USA Freeport, USA

Verbund site

Positioning

We create chemistry for a sustainable future

Performance

20

30

40

50

60

70

80

90

2008 2009 2010 2011 2012 2014 2013 2015


150 years 150 years

Percentage of sales 2014*

* Not depicted here: ~5% of Group sales reported as ‘Other‘. Paper Chemicals results have been incl. in Performance Products until the end of 2014. Thereafter Paper Chemicals has been dissolved; ** Natural Gas Trading has been sold Sep. 30, 2015 to Gazprom.

BASF today – a well-balanced portfolio Total sales 2014: €74 billion


150 years 150 years

Global reduction in carbon emissions of 6 million metric tons/a. and reduction of waste

Example Ludwigshafen site: avoidance of 7 million metric tons of freight/a. = 280,000 fewer truckloads

Shared use of on-site facilities: fire department, security, waste water treatment and analytics

Verbund: Unique competitive advantage

* Savings include only tangible synergies. Additional (intangible) benefits and retained profits are not included.

Verbund generates >€1 billion p.a. global cost savings* & supports sustainability


Q3 2015 reporting

Business development

Path forward: Our priorities


150 years 150 years

Third-quarter sales and EBIT bSI down in a difficult economic environment

Sales development Period Volumes Prices Portfolio Currencies

Q3´15 vs. Q3´14 (1%) (8%) 0% 4%

Business performance Q3’15 Q3’14* vs. Q3’14*

Sales €17.4 billion €18.3 billion (5%)

EBITDA €2.9 billion €2.5 billion +14%

EBIT before special items €1.6 billion €1.8 billion (10%)

EBIT €1.9 billion €1.7 billion +8%

Net income €1.2 billion €1.0 billion +19%

Reported EPS €1.31 €1.11 +18%

Adjusted EPS €1.07 €1.24 (14%)

Operating cash flow €3.4 billion €2.2 billion +51%

* Previous year values restated due to dissolution of disposal group “Natural Gas Trading“


150 years 150 years

0

1

2

3

4

5

2005 2006 2007 2008 2009** 2010 2011 2012 2013 2014 Q1-Q32015

Strong free cash development Q1-Q3 2015

* Cash provided by operating activities less capex (in 2005 before CTA) ** 2009 adjusted for re-classification of settlement payments for currency derivatives

Free cash flow* (in billion €)

3.3 3.5

3.2

2.5

3.2

3.9 3.7

2.6

3.2

1.7

4.1


150 years 150 years

We aim to increase volumes excluding the effects of acquisitions and divestitures. Due to the divestment of the gas trading and storage business as part of the asset swap with

Gazprom and the lower oil price we expect sales to be slightly lower than in 2014. EBIT before special items is expected to be slightly below the level of 2014. The chemicals business

is expected to provide a larger contribution than in 2014. Earnings from crop protection will most likely come in slightly below the level of 2014. In Oil & Gas, results will decline significantly caused by the lower oil price and the divestment of the gas trading and storage business.

We aim to earn a substantial premium on our cost of capital, but on a lower level than in 2014.

Outlook 2015

GDP: +2.3% (+2.4%) Industrial production: +2.0% (+2.9%) Chemical production (excl. pharma): +3.5% (+3.8%) US$ / Euro: 1.12 (1.15) Brent oil price (US$ / bbl): 55 (60-70)

Assumptions 2015

Revised Outlook 2015


Q3 2015 reporting




150 years 150 years

Low growth in Europe, Japan and the U.S.

Strong growth stimulus in China with spillover effects to other emerging markets

Lower feedstock costs

Proliferation of some technologies resulted in increased competition

Faster build-up of significant new capacities in China resulted in overcapacities

Faster than expected commoditization in selected product lines

Market dynamics have changed since 2011

Fundamental trends intact; environment for chemical industry more challenging

CAGR 2010 - 2015 2011 view today’s view

Global GDP 3.4% 2.6%

Industrial production 4.6% 3.2%

Chemical production (excl. pharma) 4.9% 3.9%

► thereof growth contribution of emerging markets 82% 91%


150 years 150 years

Components of growth

* 2010, 2011 indicative, adjusted by IFRS 10 & 11

59,6

74,3 8,7 4,9 -[WERT] 2,8

20

40

60

80

2010 2014

Volumes

Prices FX M&A

Sales* analysis 2010 – 2014 (in billion €)

Net sales 2010 Volumes Prices FX M&A Sales CAGR 2010 - 2014

BASF Group w/o Oil & Gas 51.4 +3.2

(+1.5% CAGR) +3.9 -1.6 +2.2 +3.6%

Oil & Gas 8.2 +5.5 (+13.7% CAGR) +1.0 -0.1 +0.6 +15.7%

5.7%

CAGR


150 years 150 years

Functional crop care Personal care & food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in

Oil & Gas …

BASF core business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 − until today

Acquisitions

~ €4.5 billion sales in emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Construction equipment,

flooring and wall systems Decorative paints in Europe Selected assets in Oil &

Gas Natural gas trading Custom synthesis business

~ €20 billion sales* in businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

* Includes sales of non-consolidated businesses (Styrenics, VNG participation)


150 years 150 years

Steady earnings growth

* 2010, 2011 indicative, adjusted by IFRS 10 & 11; 2001 – 2009 as reported, without non-compensable foreign income taxes on oil production

EBIT and EBITDA* (in billion €, 2001 - 2014)

3,7

4,7 4,6

7,0 7,2

8,4 8,9

7,7

6,5

9,9

11,2

10,0 10,4

11,0

8,8

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 - 32015

EBIT EBITDA

0,7

2,2 2,2

4,5 4,8 5,5

6,0

4,6

2,8

6,7

8,0 6,7 7,2

7,6

5,9

CAGR EBITDA

8.9 % CAGR EBIT

19.8 %


150 years 150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Strong track record in operational excellence

EBITDA

Sales

* Excl. companies with major IFRS 10/11 restatements, i.e. BASF YPC Nanjing, Libya onshore, other Oil & Gas and Catalysts companies

BASF Group* 2001–2014 (Index; CAGR 2001–2014)

Fixed Costs

CAGR EBITDA

9%

CAGR Sales

7%

CAGR Fixed Costs

3%


150 years 150 years

We want to grow or at least maintain our dividend

Dividend paid out per share €2.80, an increase of 3.7%

Average annual dividend increase of approx. 12% (2005-2014)

Attractive dividend yield of 4.0% in 2014**

Dividend yield above 3% in any given year since 2005

3.7%

Key facts

Dividend per share (in €)

0,0

0,5

1,0

1,5

2,0

2,5

3,0

2005 2008 2011 2014

0.50

1.00

1.50

2.00

* Dividend yield based on share price at year-end

3.1% 4.1% 3.8% 7.0% 3.9% Yield*

** Based on BASF share price of €69.88 on Dec 30, 2014

4.6%

2.50

3.7%

3.00

3.5% 4.0%

1.00

1.50

1.95 1.95 1.70

2.20 2.50 2.60 2.70 2.80

Dividend policy

Attractive shareholder return


150 years 150 years

Delivering consistent, long-term value

Average annual performance with dividends reinvested

0 3 6 9 12 15 18 21 24 27 30 33

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+8.2%

Last 5 years November 2010 – October 2015

+11.1%

+7.0%

+10.4%

+9.8%

Last 10 years November 2005 – October 2015

BASF

+8.6%

+3.4%

+31.4%


Q3 2015 reporting




150 years 150 years

Our strategic principles

We add value as one company.

We innovate to make our customers more successful.

We drive sustainable solutions.

We form the best team.


150 years 150 years

CAGR 2015 - 2020 2011 view today’s view

Global GDP 3.2% 3.0%

Industrial production 3.7% 3.5%

Chemical production (excl. pharma) 4.0% 3.9%

► thereof growth contribution of emerging markets 89% 82%

Fundamental trends intact; chemical production growing faster than GDP


150 years 150 years

Grow sales and earnings faster than global chemical production, driven by

– Continued focus on innovations

– Capital expenditures

– Acquisitions

– Operational excellence and Verbund advantages

Focus on cash generation / conversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The way forward: Our priorities


150 years 150 years

Managing volatility: BASF almost perfectly hedged on hydrocarbon price changes BASF production and consumption of oil and gas (in million boe, 2014)

BASF hydrocarbon consumption almost equals hydrocarbon production

Production of oil, liquids and gas Consumption of oil derivatives and gas

136

>100

Natural gas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil based raw materials

31

105


150 years 150 years

Strategic lever: Continuous portfolio development

Specialties and solutions

Differentiated commodities

target (in % of sales*)

~ 50% ~ 50%

Keep a balanced portfolio

Divestment of businesses e.g. due to loss of differentiation

Divestment of businesses e.g. due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

* Excluding Oil & Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations


150 years 150 years

Provide a minimum return on investment of 8% p.a. after tax

Are EPS accretive by year three at the latest

Financial acquisition criteria

Generate profitable growth above the industry average

Are innovation-driven

Offer a special value proposition to customers

Reduce earnings cyclicality

Strategic acquisition criteria

We want to acquire businesses which …

Strategic lever: Acquisitions


150 years 150 years

Strategic lever: Capital expenditures – our philosophy

Differentiated commodities With proprietary technology and/or Verbund advantages

Focus on: – emerging markets – backward integration in the US – upgrading our asset base in Europe

Specialties and solutions

Incremental investments for new products Regional expansion of businesses

Oil & Gas Focus investment budget by active portfolio optimization to secure free cash flow Keep reserve-to-production ratio of approx. 10 years


150 years 150 years

Selected major capex projects

Implementation of increased capex program will drive profitable growth

Temporarily increased capex is necessary – to build the base for

further growth – to strengthen our value

chains – to increase our footprint

in emerging markets Capex peaked in 2014

with €5.4 billion**

Capex spending

* W/o China; ** Investments in property, plant and equipment (without acquisitions)

.

Care chemicals Polymer dispersions

Polyurethane specialties Specialty plastics

North America

Cracker flexibilization and expansion

Battery materials Dispersion polymers Asia Pacific*

South America

Automotive coatings Crop protection products

Oil & Gas

Europe

Aroma chemicals SAP

Crop protection products Automotive catalysts

Butadiene Admixture systems

Specialty plastics Oil & Gas

China

Cracker expansion Amines

Surfactants Acrylic acid & SAP

Resins Specialty plastics

Crop protection products

Innovation Campus

Start-ups 2011 - 2014 Start-ups planned for 2015 - 2017

TDI complex Precious metal recycling Specialty amines Crop protection products Oil & Gas

Acrylic acid & SAP Acrylates Crop protection products Oil & Gas

Chelating agents Polyurethane systems Formic acid Butanediol expansion Crop protection products Ammonia

MDI Polyamides Butanediol / PolyTHF®

Neopentylglycol Specialty amines Ethylene oxide Isononanol Coating resins Automotive catalysts Process catalysts

Automotive catalysts Polymer dispersions Specialty plastics Aroma chemicals 2-Ethylhexanoic acid Polyisobutene Innovation Campus


150 years 150 years

Investments for organic growth

Performance Products 15%

Oil & Gas 21%

€19.5 billion

Functional Materials & Solutions 13%

Capex budget 2015-2019

Other 12%

Chemicals 33%

Capex budget 2015-2019

Asia Pacific 18%

€19.5 billion

South America* 8%

North America 27%

Europe 45%

Agricultural Solutions 6%

Other 2%

(by segment) (by region)

* Includes also regions Africa and Middle East


150 years 150 years

Customers BASF Suppliers

Energy & climate protection Greenhouse gas reduction* of 40% by 2020 (base 2002) Energy efficiency: Introduction of certified energy

management system at all major sites by 2020

Water Introduction of sustainable water management

at all relevant sites by 2025

Safety, health and security “Risk assessment” of products by 2020 >99% Health Performance Index** (annual goal) >0.9 Lost-time injuries*** by 2025 0.5 Process safety incidents*** by 2025 0.5

Employees Women in leadership positions Non-German senior executives Senior executives with international experience >80%

Evaluation of 70% of

relevant suppliers

with regard to their

sustainability

performance by

2020

Increase the share

of Accelerators from

23% to 28% by

2020

Strategic lever: Sustainability Sustainability goals along the value chain

* Per metric ton of sales products/excluding oil and gas production; ** Highest possible score 1.0; *** Per one million work hours


150 years 150 years

2.6% 0.3%

Novel methodology to screen and steer our portfolio*

23% Accelerators: – outgrow their markets

by 2-10% – deliver margins >10%

above the average – represent >60% of BASF’s

R&D pipeline 74% Performers <1% Challenged products

* 60,000 product applications analyzed; covering 98.3% of the relevant portfolio or €66.3bn. in sales (2014 data)

Increase the share of Accelerators from 23% in 2014 to 28% by 2020

Strategic lever: Sustainability Sustainable Solution Steering

23%

74.1%

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concern, action plan in development

Sustainable Solution Steering


150 years 150 years

0

1,000

2,000

3,000

4,000

5,000

2015 2018

Annual earnings contribution (in million €)

Targeted annual earnings contribution of €1 billion by end of 2018

Optimization of processes and structures in all regions, e.g. – manufacturing – incremental capacities – productivity increase

Project timeline: 2016–2018

DrivE program

Strategic lever: Operational excellence DrivE with ~€1 bn earnings contribution

Former cost saving programs pre- 2008

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015


150 years 150 years

Profitability of BASF will grow faster than global chemical production

Sales growth* Slightly faster than the global chemical production

EBITDA growth Well above global chemical production

Remain a strong cash provider Continuously generate high levels of free cash flow

Financial targets for next years

Deliver attractive returns Earn a significant premium on cost of capital

* Without considering Natural Gas Trading and Storage business

Progressive dividend policy We want to grow or at least maintain our dividend


Appendix I – Q3 2015 reporting


150 years 150 years

Chemicals Slight earnings growth despite start-up costs

Intermediates 707 +1%

Monomers 1,522 (4%)

Petrochemicals 1,411 (26%)

€3,640 (13%)


Q3’15 vs. Q3’14 (2%) (16%) (2%) 7%

Q3’15 segment sales (in million €) vs. Q3’14 EBIT before special items (in million €)

616 580

726

548633

0

200

400

600

800

Q3 Q4 Q1 Q2 Q3

2015 2014


150 years 150 years

Performance Chemicals 1,009 (2%)

Performance Products Earnings impacted by challenging market conditions

Care Chemicals

1,218 +1%

€3,899 (1%)

Nutrition & Health 496 (5%)

Dispersions & Pigments

1,176 +1%


Q3’15 vs. Q3’14 (2%) (4%) (1%) 6%

Q3’15 segment sales (in million €) vs. Q3’14 EBIT before special items (in million €)

376

217

515

304 319

0

200

400

600

Q3 Q4 Q1 Q2 Q3

2015 2014


150 years 150 years

Functional Materials & Solutions Earnings growth on continued good demand in automotive and construction

Catalysts 1,472 (6%)

Construction Chemicals

614 +9%

Coatings 753 +2%

€4,5170%

Q3’15 segment sales (in million €) vs. Q3’14


Q3’15 vs. Q3’14 (1%) (5%) 0% 6%

Performance Materials 1,678 +1%

EBIT before special items (in million €)

310220

431 458371

0

200

400

600

Q3 Q4 Q1 Q2 Q3

2015 2014


150 years 150 years

Agricultural Solutions Difficult market environment impacts earnings in seasonally slow quarter


Q3’15 vs. Q3’14 6% 10% 0% (10%)

Q3’15 segment sales (million €) vs. Q3’14

0

50

100

Q3 Q30

300

600

900

1.200

Q3 Q3

1,077

7

43

1,018

EBIT before special items (million €)

2015 2014 2015 2014

+6%


150 years 150 years

Oil & Gas Higher earnings in Exploration & Production

Sales development Period Volumes Price/Currencies Portfolio

Q3’15 vs. Q3’14 2% (6%) 2%


9

176

236

79

625

0100200300400500600700

Q3/2014 Net Income Q3/2015 Net Income

Exploration & Production

667 +9%

Natural Gas Trading 2,939 (4%)

€3,606 (2%)

Q3’15 segment sales (million €) vs. Q3’14 EBIT bSI/Net income (million €)

Natural Gas Trading

Exploration & Production

Net income

436*

260 292

371


150 years 150 years

* incl. Gas Marketing Company ** Economic interest of BASF

Oil & Gas Impact of projects with Gazprom on BASF’s P&L

Oil & Gas EBIT

Financial results

= Income before taxes and minority interests

./. Income taxes

./. Minority interests

= Net income

OPAL

50.02%

At-equity consolidation (share of net income shown in the EBIT)

Achimgaz (Achimov area IA)

Wintershall AG (Libya)

51%

Nord Stream (I) (offshore)

15.5%

GASCADE

50.02%

Planned Nord Stream (II)

(offshore)

10%

NEL

Planned Achimov area IV/V*

25% + 1 share

Wintershall Noordzee

(Netherlands)

50% 50%

Yuzhno Russkoye

(SNGP)

35%**

Yuzhno Russkoye

Gas Mktg C.

Upstream

Natural Gas Transport

100%

100%

49.98% entitled to Gazprom

Upstream

Natural Gas Transport

50.02%

50.02% entitled to BASF

Proportionally/ fully consolidated


150 years 150 years

Review of ’Other’

Million € Q3´15 Q3´14

Sales 685 977 EBIT before special items (98) (7) Thereof corporate research costs group corporate costs currency results, hedges and other valuation effects other businesses

(104) (53)

22 30

(96) (53) 100

23

Special items 26 (20)

EBIT (72) (27)


150 years 150 years

Million € Q1-Q3’15 Q1-Q3’14* Cash provided by operating activities 8,494 4,932 Thereof changes in net working capital miscellaneous items

2,500 (497)

(900) (181)

Cash used in / provided by investing activities (4,955) (3,785) Thereof payments related to tangible / intangible assets (4,387) (3,587) acquisitions / divestitures 227 355 Cash used in financing activities (3,504) (995) Thereof changes in financial liabilities dividends

(649) (2,900)

1,661 (2,656)

* Previous-year figures restated due to dissolution of disposal group “Natural Gas Trading“

Q1-Q3 2015 Cash flow from operating activities increased by 72% to €8.5 billion Cash inflow from changes in net working capital of €2.5 billion Free cash flow improved to €4.1 exceeding free cash flow of FY 2014

Cash Flow Strong cash flow in Q1-Q3 2015


150 years 150 years

Balance sheet remains strong

Balance sheet September 30, 2015 vs. December 31, 2014* (in billion €)

Liquid funds

Trade accounts receivable

Long-term assets

10.4

1.7 Dec 31 2014

Sep 30 2015

Inventories

Other assets

11.3

4.1 9.7

1.8

9.7

4.3

28.2

27.8

30.6

43.9

71.4

72.3

45.7 15.4

25.3

15.5

1.1

0.5

Disposal group

Highlights September 30, 2015

Total assets increased slightly by ~€1 billion to €72.3 billion

Inventories decreased by ~€1.6 billion

Trade accounts receivable down by €0.7 billion

Net debt nearly unchanged at €13.8 billion

Equity up ~€2 billion and an equity ratio of 42%

Provisions & other liabilities

Financial debt

Equity

Sep 30 2015

Dec 31 2014

71.4

72.3

Disposal group

28.2

27.8

30.1

15.4

26.2

15.5

0.5



150 years 150 years

150 years

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