Dr. Hans Engel - BASF...all regions Measures: – Fixed cost savings – Margin improvement – Capacity increase – Better sourcing Project timeline: 2012 - 2015 Targeted earnings

1

BASF: Fit for 2012 and beyond

Dr. Hans Engel CFO of BASF SE

New York,

January 10, 2012

2

This presentation includes 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. This presentation contains a number of forward-looking statements including, 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 with respect to future events and financial performance. Actual financial performance of the entities described herein 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.

Forward-looking statements represent estimates and assumptions only as of the date that they were made. 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.

Forward-looking statements

3

Facts & figuresWorldwide leading chemical company

- Sales 2010: €64 billion

- EBITDA 2010: €11.1 billion

- EBIT

before

special

items

2010: €8.1 billion

- Net profit 2010: €4.6 billion

Customers in more than 200 countries and in virtually all industries

No 1-3 market position in over 75% of our businesses

Unique Verbund concept for integrated production

- Six Verbund sites in all major regions

- Production sites in 41 countries

110,000 employees, thereof over 9,000 in R&D

BASF – The Chemical Company

4

1 | Business review

2 | BASF’s strategy ‘we create chemistry’

3 | Financial targets 2015 / 2020

5

Sales €55.4 billion +16.8%EBITDA €9.1 billion +7.8%EBITDA margin 16.4 % 17.8%EBIT before special items €6.9 billion +8.8%EBIT €6.6 billion +9.5%Net income €5.1 billion +46.3%EPS €5.5 +46.3%Adjusted EPS €5.2 +20.0%

Business performance Jan - Sept’11 vs. Jan - Sept’10

Highlights January – September 2011

Volume in Chemicals activities grew by 4%Acquired Cognis business continues to perform strongly; synergy targets increasedAgricultural Solutions on track for record year in sales and earningsEBIT before special items amounted to €6.9 billion.

6

We expect to generate significantly higher salesWe aim to significantly exceed the 2010 EBIT before special itemsadjusted for non-compensable oil taxes (2010: €7.2 billion)We will earn a high premium on our cost of capital

Outlook 2011

Outlook 2011 confirmed

We aim to continuously increase the annual dividend, or at least maintain it at the level of the previous year.

Dividend policy

as of October

27, 2011; 3rd Quarter

2011 Reporting

7

1 | Business review



8

BASF Today The leading chemical company

BASF outperformed global chemical production in growth by > 4 percentage points p.a. from 2001 to 2010

Active management of portfolio towards higher returns and less cyclicality

Strong and profitable growth in emerging markets

Focus on innovative products and solutions

Benchmark in operational excellence with unique Verbund concept

Strong earnings power, high cash flow generation and a strong financial profile

Generation of long-term attractive shareholder returns

9

Demographic challenges set the stage for the future of the chemical industry

Nine billion people in 2050 but only one earth

Resources, Environment & Climate

Food & Nutrition Quality of life

Chemistry as enabler

10

Key trends for the chemical industry

Integrated chemical companies remain cornerstone

Emerging markets players grow quickly

Raw material players invest further downstream

Competitive landscape will change

Use opportunities from sustainability

Increase resource efficiency

Renewables as raw materials

Stakeholder dialogue

Sustainability as strategic driver

Chemistry as enabler

Chemical products replace traditional materials

Create innovative sustainable solutions

Innovation gains in importance

Growth will accelerate

Industrial production > GDP

Chemicalproduction > GDP

Emerging markets will outgrow developed markets

Chemical industry remains an attractive growth industry

11

Assumptions 2010 – 2020

Growth 2001 - 2010

Global GDP 2.5% p.a.

Chemical production (excl. Pharma) 3.0% p.a.

Industrial production 2.4% p.a.

Growth 2010 – 2020 (Forecast*)

3.0% p.a.

4.0% p.a.

3.8% p.a.

* Assumptions 2010-2020: US$/€

Ø

1.40. oil price Ø

US$110/bbl

12

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.

13

Striving for strong profitable growth

Sales* in billion €

64

2010 Target 2020

Target 2015

Investments

Acquisitions

CAGR ~6%

Innovations

Investments

AcquisitionsInnovations

~85

~115

We will outperform chemical production by 2 percentage points p.a.* Potential impact of IFRS changes not included

14

All regions will deliver profitable growth

Regional sales targets 2020 (by location of customers)

in billion €

North America

2010 2020

13

~5.5% p.a.~22

South America, Africa, Middle East

~8% p.a.

5 ~11

Europe

~4.5% p.a.

33

~53

Asia Pacific

~8% p.a.

13~29

2010 2020

2010 20202010 2020

19%*20%*46%*52%*

25%*20%*10%*8%*

* Percentage of total sales

15

Doubling EBITDA by 2020

EBITDA in billion €

2010 Target 2020

Target 2015

* Assumptions 2010-2020: US$/€

Ø

1.40. oil price Ø

US$110/bbl

11.1

CAGR ~7.5%~23

~15Op. Excellence

Growth

Acquisitions

Op. Excellence

Growth

Acquisitions

16

Strategic levers

–

Portfolio development

–

Market approach

–

Innovations for a sustainable future

–

Investments

–

Operational excellence

17

Moving downstream towards customer industries

Functionalized Materials & SolutionsCustomized ProductsClassical Chemicals

2020in % of sales

Chemical Industry First customer industries*

2010 in % of sales

~ 40%

~30% ~ 70%

2001 in % of sales

~ 50%

~ 60%

~ 50%

* Agriculture, Construction, Consumer Goods, Health & Nutrition, Electronics, Energy & Resources, Transportation

** Sales without Oil & Gas

18

Building on our cross-divisional customer industry approach

BASF sales by first customer industry*

Bubble Size: BASF divisional sales by first customer industry (2010)**

* Excluding

Oil & Gas and Other

** Excluding Agricultural Solutions, Health & Nutrition, Oil & Gas and Other

> 15 %

< 10 %

< 10 %

> 15 %

Inorganics Petro-Chemicals

Construction Chemicals

Dispersions & Pigments

Catalysts Intermediates Coatings Care Chemicals

Performance Polymers

Poly- urethanes

Performance Chemicals

Paper Chemicals

Consumer goods

Transportation

Construction

Energy & Resources

19

Combining cross-divisional technology competencies with customer know-how

Smart forvision – joint concept car of Daimler and BASF

E-textiles

Solar roof with transparent

organic solar panels and

OLED modules

Multifunctional seat

Infrared-reflective coating

Infrared-reflective film

High performance foams

Lightweight tridion

cell

All-plastic wheel

20

Chemistry as an enabler for many customer industries

Sustainability in customer industries will drive our innovative growth fields

Health & Nutrition

Consumer GoodsConstructionTransportation Electronics Energy &

ResourcesAgriculture

Customerindustries

Energy management

Water solutions

Wind energy

Rare earth metals

recycling

Heat management

Enzymes Plant biotechnology

Batteries for mobility

Lightweight composites

Heat management

Functional crop care

Medical OrganicElectronics

GrowthFields*

*including growth fields still under evaluation

Ongoing inflow of new growth fields

21

Targeted €7 billion of EBITDA from innovations in 2020

Sales and EBITDA from innovations in billion €

2015 2020

~10

~30

Targeted spending of ~3% of sales (w/o Oil & Gas) p.a. on R&D

Sales from innovations launched within last 5 years

Sales from innovations launched within last 10 years

~2.5

~7EBITDA from innovations launched within last 5 years

EBITDA from innovations launched within last

10 years

22

Investments will boost future organic growth

Future investments in €

billlion

Thereof investments in emerging markets

Total investments

35-45%

15-20

30-40%

~15

2006 –

2010 2011 –

2015 2016 –

2020

10.9

~20%

23

Emerging markets: 45% sales target 2020 Recently announced major projects

MDI plant Chongqing, China Expansion Verbund site Nanjing*

Expansion Verbund site Kuantan*

Acrylic acid complex, Brazil Expanding gas production, Russia* 15% Stake in South Stream* Memoranda of Understanding signed

24

New operational excellence program “STEP”: Earnings contribution ~€1 billion

Annual earnings contribution in €

million

Optimization of processes, structures and production sites in all regionsMeasures:–

Fixed cost savings–

Margin improvement–

Capacity increase–

Better sourcingProject timeline: 2012 - 2015Targeted earnings contribution of about €1 billion by end of 2015

STrategic

Excellence

Program

0

1,000

2,000

3,000

2012 2015

Former cost saving programs NEXT STEP

Annual earnings contribution of more than €1 billion in 2012 will be achieved

New

EXcellence

Targets

25

1 | Business review



26

Key financial targets 2015 / 2020

Grow at least 2 percentage points above chemical production

Earn a premium on cost of capital of at least €2.5 billion on average p.a.

Profitability targetsGrowth targets

2015

2020

Sales ~€85 billion

Sales ~€115 billion

EBITDA ~€15 billion

Double EBITDA to ~€23 billion (compared with 2010)

27

Our strategy will create shareholder value

Earnings per share in €

Business

growth1.30

4.96

2002 2010

0.5

0.9

0.8

1.5 Margin

Tax rate

Share buy-back

Target 2015

~7.5

„STEP“

Share buy-back

Growth

CAGR ~9%

28

BASF tomorrow – Roadmap to 2020

We add value as “One company”

Continued top and bottom line growth with key focus on emerging markets

Expansion of portfolio downstream towards functionalized materials and solutions

Strong focus on sustainability and innovation

Commitment to deliver long-term shareholder value

29

BASF: Fit for 2012 and beyond

30

We add value as one company

Hedging

Operational excellence

Financialstrength

Global reach

People Verbund

Customer Verbund

Production Verbund

Technology Verbund

Value chains

Construction

Electronics

Energy &Resources

Consumer GoodsTransportation

Agriculture

Health & Nutrition

31

Acquisitions will contribute to profitable growth in the future

Are EPS accretive by year three at the latest

Provide a minimum return on investment of 8% after tax

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…

32

BackupBASF Today

33

Outperformed global chemical production by 4 percentage points p.a.

Sales to third parties in billion €

BASF total growth 7.8% p.a.

BASF volumes + M&A 6.6% p.a.

BASF volumes 4.1% p.a.

Global chemical production 3.0% p.a.

30

60

20

50

40

Prices

12

33

Volumes

14

64

M&A

11

Currencies

–6

70

2001 2010

34

€9bn(Sales excl. planned

measures)

Portfolio development towards more market driven and innovative businesses

Acquisitions

Crop protectionEngineering plastics Electronic chemicalsCustom synthesisCatalystsConstruction chemicalsWater-based resinsPigmentsPlastic additivesOil & Gas Personal care & food

€15bn(Sales)

BASF core business

Strong partnerships

GazpromMonsantoPetronasShellSinopecTotal

Divestitures

PharmaFibersPrinting systems PolyolefinsPolystyrene Americas Agro generics Vitamins premixFertilizers (planned)Styrolution (planned)

Selected transactions 2001 −

today

35

Strong and profitable growth in emerging markets

0

20

40

60

2001

CAGR 5.4%28%

34%CAGR 13%

2010

53

28

Developed markets*Emerging markets * BASF definition: Developed markets include EU15, Norway,

Switzerland, North America, Japan, Australia, New Zealand

22%

0

2

4

6

8

10

2001

CAGR 12%

34%

CAGR 18%

2010

8.2

2.5

25%

Sales BASF Group excluding Oil & Gas

in billion €

by location of customerEBITDA BASF Group excluding Oil & Gas

in billion €

by location of customer

36

Strong focus on operational excellence

BASF Group 2001–2010 Index

50

100

150

200

250

300

2001 2004 2007 2010

CAGR

12 %

8 %

2 %

EBITDA

Sales

Fixed costs

37

*

Cash provided by operating activities less capex

(in 2005 before CTA);

2009 adjusted for re-classification of settlement payments for currency derivatives

Continuous strong free cash flow generation

–0.5

2.8 2.6

3.33.5

3.2

2.5

–0.1

3.2

3.9

Free cash flow* in billion €

38

Delivering consistent, long-term value – Last 10 years

Long-term performance January 2002 – December 2011 (average annual performance with dividends reinvested)

BASF

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+1.3%

+14.1%

Last 5 years

+7.2%

–1.9%

13.6%

–6.7%

-1.3%

3.2%

39

BackupBusiness development Q3 2011

40

Chemicals Significant sales growth driven by strong price increases

Intermediates671+4%

Inorganics356

+11%

Petrochemicals2,141+12%

€3,168+10%

617537

765674

621

0

200

400

600

800

Q3 Q4 Q1 Q2 Q3

Sales development

Period Volumes Prices Portfolio Currencies

Q3’11 vs. Q3’10 (3)% 18% 0% (5)%

Q3’11 segment sales (million €) vs. Q3’10 EBIT before special items (million €)

2010 2011

41

Plastics Sales up mainly due to a strong Performance Polymers business

Polyurethanes1,480+2%

Performance Polymers

1,321+16%

€2,801 +8%

371

285

393 383

317

0

200

400

Q3 Q4 Q1 Q2 Q3

Sales development Period Volumes Prices Portfolio Currencies

Q3’11 vs. Q3’10 2% 10% 0% (4)%


2010 2011

42

Sales developmentPeriod Volumes Prices Portfolio Currencies

Q3’11 vs. Q3’10 (2%) 7% 23% (4)%

Performance Products Strong contributions from acquired Cognis businesses

370294

554513

440

0

100

200

300

400

500

600

Q3 Q4 Q1 Q2 Q3

PerformanceChemicals

904+9%

Care Chemicals1,265+85%

€3,991+24%

Paper Chemicals423-6%


Nutrition & Health471+32% Dispersions

& Pigments 928

+5% 2010 2011

43


Q3’11 vs. Q3’10 4% 11% 3% (6)%

Functional Solutions Strong performance of Catalysts

Catalysts1,608+19%

ConstructionChemicals

5990%

Coatings700

+9%

€2,907+12%

158

33

142167 162

0

50

100

150

Q3 Q4 Q1 Q2 Q3


2010 2011

44

Agricultural Solutions On track for record year in sales and earnings

66

95

0

50

100

150

Q3 Q3


20112010

0

200

400

600

800

1.000

Q3 Q320112010

+9%

+44%


Q3’11 vs. Q3’10 12% 3% 0% (6)%

832908

45

272 225

0

200

400

600

Q3 Q3

Exploration & Production534-39%

Natural Gas Trading

1,661+23%

€2,195 -1%

Sales developmentPeriod Volumes Prices/Currencies Portfolio

Q3’11 vs. Q3’10 (25)% 24% 0%

EBIT bSI

Natural Gas TradingEBIT bSI

Exploration & Production Net income

Q3’11 segment sales (million €) vs. Q3’10 EBIT before

special

items/ Net income

(million

€)

20112010

503227

573

350Non-compensable

oil

taxes

224

70 123

Oil & Gas EBIT before SI on last year’s level (adjusted for non-compensable oil taxes)

Documents

Dr. Hans Engel - BASF...all regions Measures: – Fixed cost savings – Margin improvement – Capacity increase – Better sourcing Project timeline: 2012 - 2015 Targeted earnings