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Heading back to profitable growth

Dr. Wolfgang Hapke

Nomura German Swiss Investor Conference

November 17, 2009 Tokyo, Japan

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• Successful value before volume strategy

• Adjusting capacity to reduced demand

• Cost-cutting and efficiency improvement programs well on track

• Ciba integration accelerated

Decisive actions in the crisis

Better positioned for profitable growth

3

BASF today – a well-balanced portfolio Total sales 2008: €62.3 billion

* Styrenics reported under ‘Other’

Percentage of sales 2008

Chemicals

18%

Plastics*

15%

Functional Solutions15%

Performance Products13%

Agricultural Solutions5%

Oil & Gas

23%

Construction Chemicals

Inorganics

Petrochemicals

Intermediates

Performance Chemicals

Coatings

Dispersions & Pigments

Performance Polymers

Polyurethanes

Crop Protection

Exploration & Production and Natural Gas Trading

Care Chemicals

Catalysts

Paper Chemicals

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Q3 09 Q3 08 Δ% Q2 09 Δ%

Sales 12,798 15,772 (19) 12,502 2

EBITDA 1,993 2,171 (8) 1,576 26

EBIT before special items 1,248 1,568 (20) 1,140 9

Net income 237 758 (69) 343 (31)

Earnings per share (€) 0.26 0.82 (68) 0.37 (30)

Adjusted EPS (€) 0.61 0.96 (36) 0.79 (23)

Million €

Q3 2009 performance sequentially improved due to operational strength

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Strong cash flow generation

Cash provided by operating activities Free cash flow*

* Cash provided by operating activities less capex (in 2005 before CTA)** According to German GAAP

-1

0

1

2

3

4

5

6

2001** 2002** 2003** 2004 2005* 2006 2007 2008 Q1-3 2009

In billion €

5.4

3.5

6

Annual earnings contribution in million €

New EXcellence Targets(NEXT):

• > 500 individual projects to simplify processes, structures in all regions and production sites

• Project timeline: 2008 – 2011

• Estimated earnings contribution in 2009: ~ €300 million

• Targeted earnings contribution by 2012: > €1 billion

Completed restructuring programs New efficiency program NEXT

Sustainable improvement of cost base

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Pro-active asset optimization Close or divest ~20 plants and sites in 2009/2010

Region Site / plant closures Site / business divestitures

Europe Inorganics• Frankfurt, GermanyIntermediates• Feluy*, BelgiumPerformance Polymers• Rudolstadt, Germany• Tarragona, Spain • Ludwigshafen, Germany

Coatings• Swinton, UK• Atlandsberg, GermanyStyrenics• Ludwigshafen,

Germany

Coatings• Verbania, Italy

North America Coatings• Decatur, USA• Belvidere, USA

Catalysts• East Newark, USA

Asia Pacific Catalysts, • Nanjing, ChinaConstruction Chemicals• Ansung, KoreaCoatings, • Ako, JapanStyrenics, • Ulsan, Korea

South America, Africa, Middle East

Styrenics• Sao José Dos Campos, Brazil

* Intention announced

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Higher than expected synergies at Ciba New target of at least €450 million

Note: Ciba revenues 2008: CHF5,919 million or €3,986 million

Total integration costs

Q1-Q3 2009: €470 million• thereof:

€457 million special items

Headcount reduction by 3,800

290

100

450

600

100

200

300

400

500

end 2009 end 2010 2011/2012 Steady State

Synergy ramp-up in million €

Synergies in percent of sales (2008: €4.0 billion)

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New target: at least €450 million

≥5

0

7.5

2.5

12.5

FY 2009E: €800 million• thereof:

€720 million special items

2010-12E: €300 million• thereof:

€150 million special items

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Well positioned for profitable growth

Ongoing portfolio

optimization

• Continue with active portfolio management

• Drive portfolio closer to customers

Excellent innovation platform

• Product and system innovation as growth drivers

• Strong pipeline of innovations

• Leading in patent index

Leading positions in growth

industries and emerging markets

• Translate megatrends into business growth

• Drive growth in key customer industries

• Benefit from strong asset footprint in allmajor regions

• Continue expansion in Asia

Growth target: We strive to outperform global chemical production growth by at least 2 percentage points

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New Zealand

Australia

China

Pakistan

Bangladesh

India Thailand

Singapore

Indonesia

Taiwan

JapanS. Korea

Malaysia

VietnamHong Kong

Asia Pacific service center

Regional headquarters

Verbund site

Chemical production site *

R&D center *

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Growth in emerging markets Formidable footprint in key Asian growth markets

BASF in Asia Pacific• Sales Q1-Q3 2009:

€6.3 billion• >15,000 employees• 116 subsidiaries, 46 JVs• 117 production sites• 20 R&D sites• ~60% local production• Supplier relationships with

over 90% of Asian manufacturing companies in Fortune 500 list

* Some sites not shown due to scale

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• 6 wholly owned subsidiaries

• 2 joint ventures

• 26 production sites

• 7 R&D sites

• 45 sales offices

• Approximately 1,500 employees

• Sales by location of customer in 2008: €1.5 billion

R&D siteChemical production site

Sub-regional headquarters

Tokyo

# Due to the close proximity of some production sites, a dot may represent more than one site.

BASF activities in Japan

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0

250

500

750

1000

1250

0

2

4

6

8

10

12

Sales by location of customers in billion €

EBITDA in million €

+ 15.6% p.a.

4.55.3

6.5

8.1

9.6 9.3

457612

700846

1204

764 6806.3

Sales and profitability of BASF’s business in Asia Pacific

2003 1-9´09200820052004 2006 2007 2003 1-9´09200820052004 2006 2007

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Contribute 20% of the BASF Group’s global sales in its chemical businesses, thereof half in Greater China

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2007 2008

2002 2008

Target 2010

We are well on track with our Asia Pacific Strategy 2010

1-9 2009

70%60%43%

Target 2010

20%

2007 2008 Target 2010

1-9 2009

20%28%13%

17%

10%

Contribute 20% of the BASF Group’s global earnings in its chemical businesses

Build a local manufacturing base to secure 70% of domestic sales

Greater China

Sales*

EBIT before special items

Local production

9% 9% 10%

Asia Pacific

* Sales to third parties by location of customers

10%

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1. Strengthen our market focus through Industry and Customer Target Groups

2. Develop and market innovations in Asia for Asia

3. Invest in organic growth in Asia to achieve 70% of our sales based on local production

4. Improve operational excellence in Asia

5. Build the best team in the industry

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BASF aims to grow above market: Asia Pacific sales to double by 2020

15

0

10

20

2008

Sales in billion €

2020

expected market growth

of 4-5% p.a.

BASF to double sales by 2020

Clear growth targets for Asia

Targets for 2020

• Growth of two percentage points above market

• Earn premium on cost of capital

• 70% of sales to be manufactured locally

• Headcount to increase by at least 5,000

• €2 billion investments planned 2009-13

• Efficiency improvements of at least €100 million p.a. by 2012

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BASFCore

Businesses

Powerful partnerships

Major acquisitions Major divestitures

• Pharmaceuticals

• Fertilizers

• Refineries

• Fibers

• Printing systems

• Polyolefins (Basell)

• Polystyrene North America

• Agchem generics

• Premix

• Crop protection

• Superabsorbents

• Oil & Gas (Revus)

• Engineering Plastics

• Electronic Chemicals

• Custom synthesis

• Catalysts (Engelhard)

• Construction Chem.

• Water-based resins

• Pigments (Ciba)

• Plastic additives (Ciba)

16 billion Euro(Sales)

10 billion Euro**(Sales)

• Gazprom• Monsanto• Petronas• Shell• Sinopec• Total

Intelligent portfolio management

* to be divested** not including Styrenics business

Selected transactions 1999 to date

• Styrenics*

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EBIT before special items by activity in billion € *(without non-compensable foreign taxes on oil production)

* Without ‘Other’ ** Based on German GAAP *** As of 2007 according to new segment structure (excl. Styrenics and corporate costs)

Oil & GasCrop ProtectionChemical activities

• BASF Group more profitable in Q1-3 2009 than in last trough (2001-2003) as a result of:- rigorous cost savings - active portfolio

management

• Oil & Gas and Agro businesses providing a substantial earnings basis

Strength through diversity: Active portfolio management pays off

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Total R&D expenditures 2008: €1.35 billion

R&D spending in 2009 planned on similar level

24%

24%

14%

17%

11%9%

Agricultural Solutions

Functional Solutions

Performance Products

PlasticsChemicals

Innovation will spur further growth

Corporate Research

• Targeted annual sales from product innovation*: - 2010: up to €6 billion - 2015: €6-8 billion

• Five Growth Clusters : - Nanotechnology - Energy Management - Plant Biotechnology - Industrial Biotechnology - Raw Material Change

• Budget for Growth Clusters (2009-2011):up to €1 billion

* New or improved products or new applications, max. 5 years on market

1%

Oil & Gas

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BASF businesses

Ultramid air intake manifold

Special catalytic

converter

Coatings

Glysantin

Mega trends

Economic globalization and emerging markets

Energy demand and climate impact

Urbanization and metropolization

Growth and aging of the world population

The ‘Nano’ – a car that…

…is energy efficient

New solutions

…does not need too much space in the city

…is available at a fair price for many people

Future Mobility: Broad offering for exciting growth projects

Example: BASF supplies Tata for the “Nano”

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The economic recovery remains slow and fragile

• Positive impulses from Asia, especially China and from South America

• Business conditions in U.S. and Europe stabilizing

• Still high uncertainty about sustainability of recovery, structural problems continue to exist e.g. overcapacities

• Risks because of continued lending restrictions by commercial banks, increasing insolvencies and unemployment as well as weakening of US$

• Basic assumptions for entire year 2009– Decline in global gross domestic product (–2.5%), global industrial

production (–9.1%) and global chemical production* (–6.1%)– Average exchange rate of $1.40 per €– Average oil price of $60/bbl

• Continuing

* Without pharma

2121

Q4:• Sales at the level of Q3’ 09. EBIT before special items

expected to come in above Q4’ 08 but below Q3’ 09.

Full year:• We anticipate a significant decline in sales and earnings.• Ciba integration accelerated. Higher integration costs will

negatively impact earnings.• Therefore, BASF is unlikely to reach its goal of earning

its cost of capital in 2009.

Outlook 2009

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Forward-looking statements

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.

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