BASF Investor Day Asia Pacific...Fujian Chemical fiber, cotton spinning and apparel 400 mn sport shoes, 20% of world output ( 2012) Shanghai. 12 Emerging Provinces: ... * Logos only

BASF Investor Day Asia Pacific, June 5-6, 2013 1

BASF Investor Day Asia Pacific

Presentations of Day 2 (Nanjing)


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.

BASF in China – A continuing growth story

Dr. Albert Heuser President Greater China & Functions Asia Pacific

Investor Day Asia Pacific Nanjing, June 6, 2013

4

BASF Investor Day Asia Pacific, June 5-6, 2013

1 | Trends in the Chinese chemical market

2 | BASF business performance in China

3 | Strategy implementation in China


2010

CAGR 4.8%

7% 8%

7%

11%

33%

34%

Real GDP (in US$ trillion)

8% 6%

7%

14%

41%

24%

13.6 21.8

2020

Greater China Japan South Asia

South Korea ASEAN ANZ

Clockwise from top:

China real GDP 2012: 5.2 trillion US$ = 35% of Asian real GDP

Chinese per-capita income to double by 2020 vs. 2010

12th 5-year plan (2011-2015) focuses on three main priorities:

– sustainable growth

– industrial upgrading

– promotion of domestic consumption

Greater China will increase share of the regional GDP to more than 40% in 2020


Hebei

Beijing

Heilongjiang

Liaoning

Sichuan

Henan

Anhui Jiangsu

Hubei

Hunan Fujian

Jiangxi

Tianjin

Manufacturing is extended inland towards Western provinces

Shandong

Zhejiang

Guangdong

Chongqing

31 mn refrigerators (2011) 16 mn washers (2011) 28 mn air conditioners (2011) 818 ktons synthetic

detergents (2011)

Anhui

1.72 mn vehicles, thereof 0.9 mn cars (2011)

40 mn laptops (2012)

Chongqing

Fujian Chemical fiber, cotton

spinning and apparel 400 mn sport shoes,

20% of world output (2012)

Shanghai

12 Emerging Provinces: 25% of total land area 47% of China population 2011 41% of China GDP 2011


CAGR 6.2%

8% 9%

8%

54%

19% 8%

64%

12% 7%

8%

2020

Real chemical production ex. pharma (in US$ trillion)

2010

Greater China will represent 64% of chemical market in Asia Pacific in 2020

China chemical production 2012: US$ 0.6 trillion = 60% of Asian real chemical production

Sustainability becomes differentiating factor

Innovations in chemistry will enable innovations in downstream industries

Chemical markets become more competitive

Greater China Japan South Asia

South Korea ASEAN ANZ

Clockwise from top:

0.8 1.5

2% 1%


Strategic relevant market in Greater China grows in line with chemical market Strategic relevant market (SRM) Greater China (in billion €)

The SRM in China grows by ~7% p.a. (2010 – 2020), in line with chemical production

All industries will contribute to SRM growth

BASF´s key customer industries:

– Chemicals and plastics

– Consumer goods

– Construction

– Health and nutrition

– Transportation

Others

Transportation

Energy & Resources

Health & Nutrition

Chemicals & Plastics

Construction

Consumer Goods

Agriculture

Electronics

0

20

40

60

80

100

120

140

160

2010 2020

~80

155

10%

19%

14%

39% 18%

13%

40%

10%

7%

CAGR + 7% p.a.


BASF is well positioned in China in an increasingly competitive environment

Sinopec ~ €27.2 bn Annual report 2012: chemical segment sales

Petrochina €13.7 bn Annual report 2012: external sales of „chemicals and refinery“

ChemChina ~ €10.0 bn Annual report 2012: including oil and equipment business

BASF €6.7 bn China sales 2012; restated sales 2012:€4.5 billion

Formosa Chemicals €4.8 bn China sales 2012, company report

Dow Greater China ~ €4.0 bn Press releases / BASF estimate: China sales 2012

Bayer Greater China ~ €3.6 bn China sales 2012, company report

Sinofert Holdings Ltd. €2.8 bn 2012 Fortune Data

Mitsui Chemicals €1.8 bn China sales 2011, company report

Hengyi Chemical €0.2 bn China sales 2011, company report

Sales in Mainland China in 2011/2012

Major chemical producers in Mainland China

10






BASF’s extensive Greater China network guarantees access to major local markets

* One dot may represent more than one site

21 major wholly-owned companies

10 major joint ventures

32 production sites

32 sales offices

~ 7,300 employees***, thereof approximately 1,000 people in marketing & sales

BASF in Greater China** Asia Pacific headquarters

Verbund site

Chemical production site

Sales office

Greater China headquarters

Innovation Campus

Legend*

Jiangsu

Taiwan

Liaoning

Jilin

Shandong

Guangdong

Beijing

Zhejiang Hunan

Hubei

Chongqing

Guangxi Yunnan

Tianjin

Hong Kong

Shanghai Nanjing

Sichuan Anhui

Fujian

** incl. JV‘s; as of December 31, 2012 *** adjusted to changes in IFRS 10 & 11


BASF – top provider to international and local Chinese leaders*

* Logos only represent examples out of wide list of varying customers

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* Sales to third parties in China (incl. Hong Kong and Taiwan) by location of customer

BASF has been a committed partner to China since 1885.

Since 2004, BASF’s sales more than tripled

China is third largest market for BASF globally (after Germany and the US)

Business in China is profit contributor to BASF Group

EBITDA growing at CAGR of 30%

Our Chinese business is a powerful growth engine

0

1

2

3

4

5

6

7

2004

2005

2006

2007

2008

2009

2010

2011

2012

2012

r***

0

200

400

600

800

1.000

1.200

1.400

Sales* and EBITDA** in China

Sale

s in

bill

ion

€

EBIT

DA

inde

xed

(200

4 =

100)

CAGR +17% p.a.

*** 2012r figures restated according to changes in IFRS 10 & 11

,

,

,

** by location of company


„China Green Companies Top 100“ China Entrepreneur Club (CEC) - 2012

BASF is a well recognized corporate citizen in China

15






Grow business by ~11% p.a.

Capture market driven growth

– Accompany customers‘ growth

– Develop business in emerging provinces

Strengthen local R&D

Increase operational efficiencies

Increase local production footprint by implementing ambitious investment plan

Strategy for 2020

Grow smartly in China Sales in Greater China* (in billion €)

0

5

10

15

2012 2012 restated Target 2020

6.7

CAGR ~11% p.a.

5.1

~12



Seize new business opportunities via industry teams

Industry teams foster cooperation across BASF’s operating divisions to provide customers with industry specific solutions.

Industry Teams in China

Construction Automotive

Paint & Coatings

Packaging

Wind Energy

Food & Agriculture

Electrical & Electronics

Pharma

Mining

Textiles


Production of passenger cars and LCVs* (in million units)

North America

EMEA Japan

13 18 23

30

8 10

Production 2011; global production 77 million units

Total production in 2020; global production 122 million units

3.7% p.a.

South America

4 7

6.4% p.a.

3.0% p.a.

China

17

33 7.6% p.a.

other Asia**

12

24

2.5% p.a.

8.0% p.a.

* Light commercial vehicles

China is the largest automotive market, outperforming global market growth

** comprises South Korea, India, Indonesia, Thailand, Vietnam, Malaysia, Philippines. Source: LMCA

Growth rate p.a.


East Region

Northwest Region Northeast Region

Number of plants: 14

Production 2012: ~3.5 mn units


Production 2012: ~ 2.5 mn units



Number of plants: 7


Middle West Region



South Region



Expected automotive OEM landscape in China 2015

Automotive production in China will be concentrated in 6 clusters

Source: LMC

North Region


North Region

BASF is a global leader, partnering with auto producers in China BASF sites supporting the automotive industry

Automotive application center

Engineering plastics Coolants Polyurethanes Catalysts Coatings Coatings system supply

Shanghai

Guilin Catalysts

Chongqing (2014) Polyurethanes

Polyurethanes Coatings system supply

Guangzhou

Tianjin Polyurethanes

Changchun Coatings system supply

Coatings system supply

Foshan

Nanjing Coatings system supply


Global growth targets (in billion €)

0

2

4

6

8

10

12

14

16

18

2011 2020

17.0

5.0

12.0 9.5

3.5

6.0

+ 8.0%

+ 4.0%

BASF well positioned in China – fastest growing automotive market

Focus on international OEMs and important local producers

Increased R&D partnerships with customers at Innovation Campus in Shanghai

~250 BASF people dedicated to automotive industry in China

+ 6.7%

BASF precious metal sales (trading and mobile emissions catalyst production) BASF Automotive chemical sales global Indication BASF Automotive chemical sales China

Chinese automotive customers contribute strongly to 2020 growth targets


80

100

120

140

160

180

200

220

2009 2010 2011 2012

BASF sales* growth in emerging provinces** in China (2009 = 100)

Sales in emerging provinces almost doubled since 2009

Emerging provinces account for ~15% of BASF Greater China sales (2012)

Share of business contributed by emerging provinces to grow

More business opportunities by moving closer to customers

6 sales offices in emerging provinces

Close to 100 sales people in emerging provinces

* including sales out of Joint Ventures

BASF has outstanding record in growing business in emerging provinces in China

CAGR Gr. China ~10% p.a.

** Emerging provinces are: Sichuan, Chongqing, Hubei, Hunan, Hebei, Henan, Jiangxi, Anhui, Fujian, Heilongjiang, Liaoning, Tianjin


Chongqing area – strongly growing industrial and consumer market

Approx. 30 million people live in Chongqing

GDP 2012: ~ USD 185 billion


GDP growth ’08-’12: 22.2% p.a. (9.2% for China)

Key industries − Electronics and computers

− Automotive

− Engineering

− Robotics

Chongqing


MDI investment project in Chongqing MDI market in China to grow

by ~10% p.a. within next decade up to 3.3 million metric tons per year (2020)

New world-scale plant with capacity of 400,000 metric tons MDI per year

Investment: €860 million

Plant 100% owned by BASF

Part of integrated complex

First units to start up by the end of 2014


Xinjiang province holds the largest natural gas resources in China

Xinjiang Uyghur autonomous

region

Area: 1,660,000 km2


GDP growth 2012: 12.0%

Tarim basin is largest Chinese natural gas field

Recoverable resources close to 6 trillion cubic meters (source: International Energy Agency)

Major West-to-East pipelines from Turkmenistan and Russia will go through Xinjiang

Xinjiang

Janggar Basin

Tarim Basin


Securing competitive natural gas for BDO / PolyTHF production

BASF and Xinjiang Markor Chemical Industry Co., Ltd. plan two joint ventures (JV): JV1: 100,000 mt* Butanediol JV2: 50,000 mt* PolyTHF

Location: Korla, Xinjiang Uygur autonomous region

Cooperation with partner to develop chemical production based on local natural gas

Benefits for BASF: reliable and competitive raw material supply

Start-up planned for 2015

* metric tons


Korla

Tibet

Qinghai

Inner Mongolia

Heilongjiang

Shandong

Liaoning

Hebei

Sichuan

Henan

Anhui

Nanjing

Jilin

Gansu

Ningxia

Shaanxi

Shanxi

Hubei

Hunan

Zhejiang

Fujian

Jiangxi

Guangxi Yunnan

Guizhou

Taiwan

Hainan

Beijing Tianjin

Shanghai

Maoming

Current investment projects 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 Production clusters

Selected production sites

Implement €4 - 5 billion investment plan to move closer to the customers

Chongqing

Rudong

Kaohsiung


0

5

10

15

2012 restated Growth fromannounced

projects

Growth fromprojects underconsideration

New businesses Target 2020


Grow business by ~11% p.a.

Capture market driven growth

Strengthen local R&D

Increase operational efficiencies

Increase local production footprint by implementing ambitious investment plan

Continue to scout for profitable investment opportunities

Continue to grow profits

Strategy for 2020 Sales in China* (in billion €)

Grow smartly in China

5.1

~12


30

BASF is strong local player in China:

– local production for the Chinese market

– close to customer

– strong local marketing and sales organization

Powerful assets in place: world-class production facilities, strong R&D presence

Unparalleled partnerships and customer base

Excellent sustainability record and know-how: a competitive edge

Sales of ~€12 billion by 2020; Consistent increase in profits

China: Key to BASF’s success in Asia Pacific

BASF-YPC Company Limited 扬子石化－巴斯夫有限责任公司 BASF Investor Day Asia Pacific, June 5-6, 2013 Ι 1

Stephan Kothrade President BASF-YPC Company Ltd. June 06, 2013

Creating competitive advantages with a Verbund in China

2

BASF Investor Day Asia Pacific, June 5-6, 2013 Ι

1 | Building a world-scale Verbund site

3 | Success factors

4 | Further growth plans

2 | Business performance


Nanjing

Shanghai

5th largest population in China (79 million people/2012)

Highly developed infrastructure

Manufacturing accounts for >50% of GDP

Among top 3 in nominal GDP: 5.4 trillion RMB/2012, 17% CAGR 2006-2012

China’s #1 in Foreign Direct Investments since 2006

#1 in per capita income

Jiangsu Province

Jiangsu Province

Nanjing in Jiangsu province One of the industry clusters in China

BASF-YPC Company Limited 扬子石化－巴斯夫有限责任公司 4


Closeness to customers in one of the major industry clusters

Nanjing represents ~5% of the Chemical Sector in China

Second largest refining and ethylene capacities in China

400 chemical companies, thereof 120 in Nanjing Chemical Industry Park

Lower labor cost than in Tier-1 cities Shanghai and Beijing

Chemical Cluster Nanjing

Nanjing in Jiangsu province The 2nd largest chemical cluster in China

Nanjing Downtown

Naphtha Pipeline

Nanjing Chemical Industry Park

Natural Gas Station

BASF-YPC

BASF-YPC Company Limited 扬子石化－巴斯夫有限责任公司 5


50/50 JV with partner Sinopec, ~US$4.5 bn. (~€3.5 bn.) joint total investment until 2012

Capacity: ~ 3 million metric tons of total production/year

Steam cracker, 16 plant clusters, ~2000 employees

Commercial start-up in 2005, first expansion in 2011

BASF representative holds the BASF-YPC President position, Sinopec representative holds the Chairman position

BASF-YPC, heart of our Verbund network in China

The Nanjing Verbund site covers ~340 soccer fields


C3

C2 Ethylene Glycol

Acrylates

Methylamines

C1 Dimethylformamide Formic Acid

Ethylene Oxide

Acrylic Acid

Oxo-alcohols

Propionic Acid

Propylene

Ethylene

BASF-YPC covers all relevant BASF value chains Wave 1: Laying the petrochemical foundation

Wave 1 (completed 2005)


C3

C2 Ethylene Glycol

Methylamines

C1 Dimethylformamide Formic Acid

Ethylene Oxide

Acrylic Acid

Oxo-alcohols

Propionic Acid

Butadiene

C4 2-Propylheptanol

Polyisobutene

Butenes

Isobutene

Ethanolamines

DMA 3

Ethyleneamines

Dimethylethanolamine

Wave 2 (completed 2011)

Acrylates

Propylene

Ethylene

Non-Ionic Surfactants

BASF-YPC covers all relevant BASF value chains Wave 2: Downstream expansion

Wave 1


C3

C2 Ethylene Glycol

C1

Ethylene Oxide

Acrylic Acid

Oxo-alcohols

Propionic Acid

C4 2-Propylheptanol

Polyisobutene

Non-Ionic Surfactants

Ethanolamines

DMA 3

Ethyleneamines

Dimethylethanolamine

Wave 1

Acrylates

Glacial Acrylic Acid Superabsorbents

Butadiene

Butenes

Isobutene

Propylene

Ethylene

Methylamines

Dimethylformamide

Formic Acid

BASF-YPC covers all relevant BASF value chains Wave 3: Bringing Verbund to full potential

Wave 3 (under construction)

Wave 2


BASF-YPC: ~€3.5 billion total joint capex until 2012 Capital Expenditures (in million €)

IPS 1 NASA IPS 2 Others

0

100

200

300

400

500

600

700

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

10



3 | Success factors




Business Performance of BASF-YPC Sales (in billion €)

1.72

1.36

1.93

2.76 2.83

0

0.5

1

1.5

2

2.5

3

2008 2009 2010 2011 2012

100%

167%

238%

292%

200%

EBITDA (indexed)

0%

50%

100%

150%

200%

250%

300%


Continuous improvement of operational excellence

Local project team screens all production plants, also infrastructure & services

BASF delegates infuse tools and methodology from other Verbund sites – technical processes – automation – work processes – organization – contractor management

Optimization of operational excellence

Production Plants

13



3 | Success factors




Synergies with local Sinopec subsidiaries

Sinopec supplies naphtha and technical gases to BASF-YPC

Sinopec support in permissions and government relations

BASF technologies

Verbund knowledge from other BASF sites

Expertise in optimizing operational excellence

BASF-YPC provides raw materials, utilities and services to BSNJ (100% BASF)

BASF-YPC Company Limited

扬子石化－

巴斯夫有限责任公司

BASF-YPC is a grown partnership


BASF-YPC provides raw materials, utilities and services

Organic Flocculants

Cationic Polyacrylamide Cationic Monomer DMA 3

C3

C2

Dimethylamine C1

Methylacrylate BASF-YPC

Acrylic Acid Propylene

Dimethylethanolamine Ethylene Ethylene Oxide DMA 3

BASF-YPC Backbone for BASF’s downstream activities

Utilities Services

DMA 3

BASF Specialties Nanjing


Geographic proximity: 80% of customers within 400 km around Nanjing

Enhanced market access through BASF China and Sinopec sales network

BASF-YPC’s supplies to local champions and to BASF’s global key accounts

Multiple synergies

Customer proximity of BASF-YPC

*

*

*

* Global BASF key account


Recruitment and retention Perceived as top employer in

Nanjing; attrition rate only ~2%

Cooperation with local universities and colleges

Successful recruitment from nationally renowned universities

Access to qualified personnel and local talent pool

Talent development for BASF in Greater China and beyond

BASF-YPC is perceived as a top employer


BASF-YPC is a role model for EHS in China Lost Time Injuries – Contractors, Employees (per million working hours)

1.9

0

0.5 0.45 0.28 0.3

0.5 0.4

0.2 0.2

0

0.5

1

1.5

2

2008 2009 2010 2011 2012

BASF-YPC is a benchmark for occupational & process safety

Outstanding reputation in environmental protection

Participation in BASF’s occupational health campaigns

LTI rate at BASF-YPC is lower than for BASF Group

Won ‘National Safety Culture Model Enterprise Award’

High focus on EHS

Contractors Employees


BASF-YPC sets new standards

for distribution safety; pushing for double-hull tankers for river transportation

BASF-YPC coaches customers in product stewardship concepts

Active stakeholder dialogue: – Annual EHS Report – Town hall meetings – Donations

(schools, hospitals)

Looking beyond the fence

BASF-YPC: Frontrunner in stakeholder engagement

20



3 | Success factors




3rd wave of projects under way MOU signed with Sinopec in

December 2010; up to ~US$1 billion joint investment

Individual feasibility studies

Projects already in execution: – New 60 kt SAP plant – New acrylic acid and butyl

acrylate plants

Projects under consideration: – HPPO – New neopentyl glycol plant – Expansions of ethylene

oxide, 2-propylheptanol and non-ionic surfactants

Further expansion at BASF-YPC


China is projected to remain the world’s fastest growing acrylics market: >8% CAGR

BASF-YPC’s acrylics expansion will strengthen our market leadership position

Cost leadership through proprietary BASF technology

Share of global Acrylics demand

Example: Highly Attractive Acrylics Value Chain China will become the global #1 acrylics market by 2020

China will climb to #1 in acrylics

North America

China Europe RoAsia Japan RoW

26% 6% 6.3 mn t 2.8 mn t

2000 2020


Source: BASF Market Intelligence

Baby 78%

Others 2%

1,700 kt

Example: Highly Attractive Acrylics Value Chain SAP is the biggest growth story in acrylics

Growth in SAP

Adult Incontinence 17%

* Emerging Markets

Feminine Care 3%

SAP application split (2012)

Global SAP market ~1,700 kt

Global growth rate: ~5% p.a.: – Increasing wealth in EM’s* – Next-generation baby diapers – Ageing population (>6% p.a.

in Adult Incontinence segment, driven by Western markets)

SAP market in China: High single-digit growth rate expected

BASF’s Global Key Accounts in China gain access to locally produced SAP with globally consistent quality


BASF-YPC: Verbund Strength In China Nanjing site is a benchmark: World-scale, integrated, low-cost, consistently

profitable

Customer portfolio includes regional players, national champions, global BASF key accounts – and wholly-owned BASF Specialties Nanjing

Growth driven by stepwise capacity expansion and downstream extension of value chains

Top employer with low attrition rate

Frontrunner in Environment, Health & Safety

Powerful platform for further success

25


BASF-YPC Company Limited 扬子石化－巴斯夫有限责任公司

BASF Specialty Chemicals Mingwei QIN, General Manager

BASF Specialty Chemicals (Nanjing) Co., Ltd.

Investor Day Asia Pacific Nanjing, June 6, 2013

BASF Investor Day Asia Pacific, June 5-6 2013 2

1 | Building a best-in-class specialty site

2 | Business and customers

3

BASF Investor Day Asia Pacific, June 5-6 2013

Wholly-owned by BASF

Composed of Henghai and Sunrise areas, part of Nanjing Chemical Industry Park

Close to BASF-YPC

Total area: ~ 37 ha

Available for expansion: 18 ha

6 plants with total investment: approx. US$ 200 million

First production in June 2012

BASF Specialty Chemicals Company Nanjing

BASF-YPC

Henghai area

BASF-YPC

Henghai area

(reserved land)

4


Multi-function

building Workshop Pigments

plant Pigments

plant Additives

plant Warehouse

Administration building

Key products in Sunrise area: Pigments and paint additives

5


Key products in Henghai area: Flocculants and tertiary-Butylamine (t-Ba)

Start-up: June / October 2012

DMA3quat and flocculants plant tertiary-Butylamine plant

Start-up: May 2013

6


Fast and cost efficient project execution

18 months from piling to start

Project costs under budget

Excellent EHS (environment, health and safety) record

How has this been achieved?

Local engineering

Local procurement of capital goods

Closely working project team

► BASF Specialty Chemicals is a benchmark for successful project implementation in China

7


BASF-YPC provides raw materials, utilities and services to Henghai area

Production Water Nitrogen Steam

Plant tBA Plant DMA3Q

Ammonia Isobutene DMA3 Fuel Gas Demin. Water

Instrument Air/ Plant Air

Potable Water

Service 35kV Monitor

BASF Specialty Chemicals benefits from BASF-YPC Verbund

8


Implementing BASF global standards

Full compliance with all BASF EHS and quality standards

Full compliance with local regulations

Implementation of responsible care system

No compromise on environmental protection, health and safety

Successfully gained ISO 9001 certificate

Implementation of integrated quality management system

BASF Investor Day Asia Pacific, June 5-6 2013 9

1 | Building a best-in-class specialty site

2 | Business and customers

10


BASF Specialty Chemicals serves growing downstream specialty markets

Cationic Flocculants (Zetag® )

Waste water treatment / paper plants

tertiary- Butylamine (t-Ba)

Vulcanization accelerators for rubber and tire production

Pigments / Additives

Industrial and Automotive coatings,

Decorative paints

Flocculants tertiary-Butylamine Pigments & Coating Additives 10

11


Water Stress Health Protection Sustainable Energy Growth

Demand for water treatment solutions grows rapidly in China

Growing industrial

production

Socio-economic megatrends in China


12


Zetag® cationic polyacrylamide flocculants used to efficiently separate solids (sludge)/liquids in water treatment processes

Dry sludge can be used as fuel to generate energy

Chinese flocculants market > €150 million, growing by 8% p.a.

First backward integrated polyacrylamide value chain via BASF-YPC

Improved supply reliability and cost efficiency for Asian market

Zetag® flocculants for waste water treatment solutions

Flocculants Tertiary-Butylamine Pigments & Coating Additives 12

13


Tire production in China driven by light vehicle production, replacement tire market and tire exports

Tire production to grow by ~7% p.a., reaching ~500 million units by 2015

Tire production drives demand for vulcanization accelerators

0

100

200

300

400

500

600

2001 2005 2009 2013 2015

335

410

Tire production in China (in million units)

Increased need for mobility drives tire production in China

CAGR ~7% p.a.


~500

190

90

14


Market size of t-Ba: ~ US$ 50 million (2011)

New plant serves ~15 growing customers in China

Switch from import to local production shortens lead time by 6 weeks

Cost efficient production process based on backward integration and proprietary technology

t-Ba process free of waste water ► low environmental impact

BASF: leading t-Ba supplier in China

Local production enables BASF to grow Chinese tertiary-Butylamine business

tertiary-Butylamine

Mercapto-benzotriazole

Vulcanization accelerator TBBS

Tire production

other raw materials Rubber

t-Ba-based vulcanization accelerators reduce cycle time and energy consumption in tire production


15


0

2

4

6

8

10

12

14

16

18

2005 2010 2015

Paint and coatings consumption in China (in million mt)

Chinese coatings and paint market will continue to grow above GDP

Fastest growing market segments: – Architectural coatings – Industrial coatings – Automotive coatings

Main drivers: – Growth in emerging provinces – Investments in infrastructure – Automotive growth – Environmentally friendly

products

BASF participates in growing Chinese coatings market

CAGR 12% p.a.

5

9

16


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BASF participates in growing Chinese coatings market

Pigments and additives add value (color, properties) to paint and coating systems

Production at BASF Specialty Chemicals reduces lead-time and improves supply security to Asian customers

Local plant with proximity to R&D center in Shanghai reduces time to market for new products

Flexible production set-up allows BASF to adapt to changing market conditions

Varnish

Pigments Additives

Binders


http://upload.wikimedia.org/wikipedia/commons/c/ca/Rangolicolors.jpg

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Independent, wholly-owned specialty chemicals producer

World-class site

Site development is a model for other projects in Asia Pacific

Focused on high-growth downstream markets: water treatment, transportation, coatings, …

Proximity to BASF-YPC: Synergies and lower costs

BASF Specialty Chemicals Nanjing

Powerful local presence: Room to grow

Slide Number 1Cautionary note regarding �forward-looking statements Slide Number 3Slide Number 4Greater China will increase share of the regional GDP to more than 40% in 2020Manufacturing is extended inland towards Western provincesGreater China will represent 64% of chemical market in Asia Pacific in 2020�Strategic relevant market in Greater China grows in line with chemical marketBASF is well positioned in China in an increasingly competitive environmentSlide Number 10BASF’s extensive Greater China network guarantees access to major local markets BASF – top provider to international and local Chinese leaders*Our Chinese business is a powerful growth engineBASF is a well recognized corporate citizen in ChinaSlide Number 15Grow smartly in ChinaSeize new business opportunities via industry teamsSeize new business opportunities via industry teams�China is the largest automotive market, outperforming global market growthAutomotive production in China will be concentrated in 6 clusters�BASF is a global leader, partnering with auto producers in ChinaChinese automotive customers contribute strongly to 2020 growth targetsBASF has outstanding record in growing business in emerging provinces in ChinaChongqing area – strongly growing industrial and consumer marketMDI investment project in ChongqingXinjiang province holds the largest natural gas resources in ChinaSecuring competitive natural gas for �BDO / PolyTHF productionImplement €4 - 5 billion investment plan to move closer to the customersGrow smartly in ChinaChina: Key to BASF’s success in Asia PacificSlide Number 31Kothrade_final_handout&web.pdfSlide Number 1Slide Number 2Nanjing in Jiangsu province �One of the industry clusters in ChinaNanjing in Jiangsu province �The 2nd largest chemical cluster in ChinaBASF-YPC, heart of our Verbund network in China�BASF-YPC covers all relevant BASF value chains�Wave 1: Laying the petrochemical foundation�BASF-YPC covers all relevant BASF value chains�Wave 2: Downstream expansion�BASF-YPC covers all relevant BASF value chains�Wave 3: Bringing Verbund to full potentialBASF-YPC: ~€3.5 billion total joint capex until 2012Slide Number 10Business Performance of BASF-YPC �Optimization of operational excellence Slide Number 13BASF-YPC is a grown partnership BASF-YPC �Backbone for BASF’s downstream activities�Customer proximity of BASF-YPCBASF-YPC is perceived as a top employer BASF-YPC is a role model for EHS in ChinaBASF-YPC: Frontrunner in stakeholder engagementSlide Number 20�Further expansion at BASF-YPC�Example: Highly Attractive Acrylics Value Chain�China will become the global #1 acrylics market by 2020 Example: Highly Attractive Acrylics Value Chain�SAP is the biggest growth story in acrylicsBASF-YPC: Verbund Strength In ChinaSlide Number 25

2013-05-24 BSNJ Qin_final_web.pdfSlide Number 1Slide Number 2BASF Specialty Chemicals Company NanjingKey products in Sunrise area:�Pigments and paint additives Key products in Henghai area: Flocculants and tertiary-Butylamine (t-Ba)Fast and cost efficient project executionBASF Specialty Chemicals benefits from BASF-YPC Verbund��Implementing BASF global standardsSlide Number 9BASF Specialty Chemicals serves growing downstream specialty marketsDemand for water treatment solutions grows rapidly in ChinaZetag® flocculants for waste water treatment solutionsIncreased need for mobility drives tire production in China Local production enables BASF to grow Chinese tertiary-Butylamine businessBASF participates in growing Chinese coatings marketBASF participates in growing Chinese coatings market�BASF Specialty Chemicals Nanjing Slide Number 18

Documents

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