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BASF Capital Market Story December 2014 1

We add value

as one company

Martin

Brudermueller Vice Chairman

BASF SE

Magdalena Moll

Head of Investor Relations

BASF SE

Roadshow Middle East

December 10, 2014


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.


Chemistry as an enabler

BASF has superior growth

opportunities:

– sustainable innovations

– investments

– emerging markets

The #1 chemical company

€74 billion sales, €7.2 billion

EBIT bSI in 2013

#1-3 in >75% of businesses,

present in >200 countries

6 integrated Verbund sites,

production in 60 countries

A track record of strong

sales and earnings growth

14% average annual

dividend increase, >3%

yield in every single year*

~€68 billion market

capitalization

December 3, 2014

Performance Perspective

* For 2004-2013

Ludwigshafen,

Germany

Antwerp,

Belgium

Nanjing,

China

Kuantan,

Malaysia Geismar,

USA

Freeport,

USA

Verbund site

Positioning

We create chemistry for a sustainable

future


Percentage of sales 2013*

* Not depicted here: ~6% of Group sales reported as ‘Other‘

BASF today – a well-balanced portfolio Total sales 2013: €74 billion


Global reduction in carbon

emissions of 6.1 million metric

tons/a. and reduction of waste

Example Ludwigshafen:

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 generates >€1 billion p.a. global

cost savings*, supports sustainability

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


BASF in Middle East

Egypt

SAUDI BASF BM

Key Facts

Dubai

Sales 2013: € 677 million

14 legal entities, 8 production

sites

863 employees

Dubai is the regional hub

Serving 3000 customers

Key industries: Chemicals,

Construction, Consumer

goods, Energy and resources

BASF JORDANIAN

SWISS COMPANY

Saudi Arabia

Iran

BASF IRAN

(P.J.S.) COMPANY

BASF PU PARS

UAE

BASF FZE

BKG LLC & BKG FZE

BASF CC UAE LLC

BASF PM DUBAI

BASF CC ORIA FZE

Bahrain

BASF PAME LLC

BASF CC LLC

Oman

BASF TRADING

EGYPT

BASF LTD

BASF CC

EGYPT

Jordan

Production site

Regional hub


Customers from 17 countries

More than 100 production sites

130 sales offices*

16,708 employees,

thereof ~700 R&D staff

Sales in 2013: €12.45 billion**

EBITbSI in 2013: €842 million

BASF in Asia Pacific

* Some sites are not shown due to scale. Site and office numbers refer

to companies of significant size where BASF holds a stake greater

than 50% .

** Sales by location of customer

Regional headquarters

Verbund site

Production site

R&D/Technical center

Asia Pacific service center

Singapore

Hong Kong

Japan South Korea

Mongolia

China

Pakistan

India

Sri Lanka

Bangladesh

Thailand Vietnam

Philippines

Indonesia

Taiwan

Malaysia

Australia

New Zealand


Functional

Materials &

Solutions

30%

Sales* by segment

Chemicals

31%

Other

9%

Performance

Products

26% Greater

China

44%

Australia,

New Zealand (ANZ)

4%

South Asia

10%

Japan

12%

South Korea

8%

ASEAN

22%

€12.5

billion €12.5

billion

Sales by sub-region

Agricultural

Solutions

4%

Sales Asia Pacific 2013

South Asia: India, Pakistan, Bangladesh, Sri Lanka

ASEAN: Singapore, Philippines, Vietnam,

Thailand, Indonesia, Malaysia

*Sales to third parties by location of customers


Business review

Strategic Levers


Q3 2014: BASF with higher sales and

earnings despite declining demand

Sales development

Period Volumes Prices Portfolio Currencies

Q3’14 vs. Q3’13 7% (4%) 0% 0%

Q1-Q3 2014 vs. Q1-Q3 2013 6% (3%) 0% (2%)

Business performance Q3’14 vs. Q3’13 Q1-Q3’14 vs. Q1-Q3’13

Sales €18.3 billion +3% €56.3 billion +1%

EBITDA €2.5 billion +1% €8.2 billion +4%

EBIT before special items €1.8 billion +9% €6.0 billion +5%

EBIT €1.8 billion +8% €6.1 billion +8%

Net income €1.0 billion (5%) €3.8 billion +3%

Reported EPS €1.14 (5%) €4.16 +3%

Adjusted EPS €1.27 (1%) €4.45 +2%


Recent transaction

with Statoil

Acquisition of participations

in oil & gas fields in Norway

Purchase price amounts to

US$1.25 billion

Increase of production to

~60,000 boepd in Norway

Additional reserves and

resources of ~170 million

boe

Restructuring of

Performance Products

Strengthening of

R&D platforms

BASF to sell textile

chemicals business to

Archroma

Paper Chemicals division to

be dissolved, product lines

moved to other divisions

Strategic options for parts of

kaolin business in evaluation

Total earnings improvement

of ~€500 million by 2017

Future set up of global

research platforms:

– Process Research &

Chemical Engineering,

led out of Europe

– Bioscience Research,

led out of North America

(from 2015)

– Advanced Materials &

Systems Research, led

out of Asia (from 2016)

Important corporate developments

http://bilddb.basf-ag.de/webreader/main/get_content.jsp?obj_id=090080e880404e9e&format=jpeg_lres


0

1

2

3

4

2004 2005 2006 2007 2008 2009** 2010 2011 2012 2013 Q1-Q32014

Strong free cash flow generation

* 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

2.6

3.3 3.5

3.2

2.5

3.2

3.9 3.7

2.6

3.2

1.3


0.851.00

1.50

1.95 1.95

1.70

2.20

2.50

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Growing dividend with attractive yield

* Dividend yield based on share price at year-end

Dividend payments

3.7% 3.2% 3.1% 4.1% 3.8% 7.0% 3.9%

Dividend yield*

4.6%

2.60 2.70

3.7%

** Based on BASF share price of €77.49 on Dec. 30, 2013

Dividend per share

(€)

3.5%

Dividend Policy

We want to grow or at least

maintain our dividend

Dividend of €2.70 per share for

2013, an increase of 3.8%

2004-2013: Average annual

dividend increase of ~14%

Attractive dividend yield of

3.5% in 2013**

Dividend yield above 3% in any

given year since 2004


Delivering consistent, long-term value

Average annual performance with dividends reinvested

0 3 6 9 12 15 18

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+9.2%

Last 5 years December 2009 – November 2014

+16.8%

+6.4%

+12.2%

+12.8%

Last 10 years December 2004 – November 2014

BASF

+10.0%

+4.4%

+15.5%


We aim to increase our sales volumes excluding the effects of acquisitions and divestitures.

Nonetheless, sales will decline slightly compared with 2013 due to the divestiture of the gas

trading and storage business planned for autumn 2014 and negative currency effects.

Despite the challenging environment, we strive for a slight increase in EBIT before special

items.

Outlook 2014

GDP: 2.3% (previous: 2.5%)

Industrial production: 3.4% (previous: 3.7%)

Chemical production: 4.0% (previous: 4.4%)

US$ / Euro: 1.35 (unchanged)

Oil price (US$ / bbl): 105 (previous: 110)

Assumptions 2014

Outlook 2014


Update on key assumptions

of the “We create chemistry” strategy

Growth 2010 – 2015

(today‘s view)

Global GDP 2.6% p.a.

Chemical production

(excl. pharma) 4.0% p.a.

Industrial production 3.4% p.a.

Growth 2010 – 2015 (‘We create chemistry’ *)

3.4% p.a.

4.9% p.a.

4.6% p.a.

* Rebased figures, new base year 2010


EBITDA / EBITDA impact (billion €)

Projection 2015

Expected sales and

EBITDA in line with financial

market expectations for

2015

Market expectation for 2015

EBITDA between €10 - €12

billion. BASF aims to

achieve upper end of range

Detailed outlook for 2015

provided on Feb. 27, 2015


Business review

Strategic levers

– Portfolio development

– Market approach

– Innovations for a sustainable future

– Investments

– Acquisitions

– Operational excellence


BASF outperformed global chemical

production by ~3 percentage points p.a.

Sales to third parties billion €

33

79

72

74

16.6

20.7 -4.8

13.7

-6.6 3.7 -0.5 -2.0 0.6

20

40

60

80

2001 2012 2012 restated

2013

Volumes

Prices

Currencies M&A

Volumes Prices Currencies M&A

IFRS

Impact


Portfolio development Moving downstream towards customer industries

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

** Sales excluding Oil & Gas. Targets were published on November 29, 2011.


Catalysts

Construction chemicals

Water-based resins

Pigments, plastic additives

Oil & Gas

Personal care & food

Battery materials

Functional crop care

Omega-3 fatty acids

Enzymes

…

BASF

core business

Strong partnerships

Gazprom

Monsanto

Petronas

Shell

Sinopec

Statoil

Total

Selected transactions

2005 − today

Acquisitions

~ €14 billion sales

Divestitures

Agro generics

Vitamin premixes

Styrenics

Fertilizers

Construction equipment, flooring and wall systems

Natural gas trading and storage business

Textile chemicals

…

~ €19 billion sales*

Portfolio development Towards more market driven and innovative businesses

*Incl. Natural Gas Trading: Closing expected in autumn 2014; Excl. textile chemicals until closing


Restructuring in Performance Products Announced measures to strengthen competitiveness

Measures

Leather and textile

chemicals (March 18, 2013 & October 16, 2014)

Establishment of global innovation center in China

Divestiture of textile chemicals

Water, oilfield and

mining chemicals (March 27, 2013)

Establishment of global business unit to realize synergies

Divestment of industrial water management business

Plastic additives and

pigments (April 23, 2013)

Adjustments at sites in the Basel area to adapt to changed market

conditions

Downsizing of R&D activities

Pigments (October 23, 2013)

Optimization of global production network

Closure, restructuring and evaluation of strategic options for

production assets

Paper Chemicals (January 23, 2014 &

September 24, 2014)

Latex plant in EU shut down. Kaolin: Strategic options under

evaluation

From Jan. 1, 2015: Division dissolved, new set-up follows value

chains

Nutrition & Health (April 25, 2014)

Adaption of product portfolio and organizational processes to

market realities

Care Chemicals (June 5, 2014)

Set of measures to adapt to changed customer needs and market

conditions within its Home Care, Industrial & Institutional Cleaning

and Formulation Technologies businesses

Further measures Ongoing

Reduction of >2,400 positions

until end of 2017

Annual earnings

contribution

of ~€500 Million

from 2017 onwards

One-time costs

in the magnitude of ~€250-300 Million


Monomers

Intermediates

Dispersions &

Pigments

Performance

Chemicals

Care

Chemicals

Paper

Chemicals

Coatings

Catalysts

Construction

Chemicals

BASF sales by first customer industry*

> 15 %

> 10 %

< 10 %

> 15 %

Consumer goods

Transportation

Construction

Energy & Resources

Market approach Cross-divisional customer industry approach

* Excluding Oil & Gas, Crop Protection and Other. 2012 numbers

Petro-

chemicals

Performance

Materials

Bubble Size: BASF divisional sales by first customer industry*/**

** Nutrition & Health sales predominantly into Health & Nutrition market


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

Cross-divisional approach BASF’s technology Verbund combined with customer know-how

Daimler & BASF concept car ‘Smartforvision’


Customer Verbund - adidas and BASF Working together for disruptive innovation: Infinergy™


Strong commitment to innovation Innovations for a sustainable future

1.4 1.5

1.6 1.7

1.8

0,0

0,5

1,0

1,5

2,0

2009 2010 2011 2012 2013

€1.8 billion R&D expenditure in

2013, further increase of R&D

spending planned in 2014

~10,650 employees in R&D

~3,000 projects

Research Verbund:

Cooperations with ~600

excellent partners from

universities, start-ups

and industry

Target 2015 and 2020:

– €10 billion in sales from

innovations younger 5 years

– €30 billion in sales from

innovations younger 10 years

R&D expenditures

in € billion

Chemicals

10%

Performance Products

20%

Functional Mat. & Sol.

20%

Agricultural Solutions

26%

Oil & Gas

3%

Corporate Research

21%

Key facts

2.0

1.5

1.0

0.5

0


Chemistry-based innovations Growth and technology fields

Growth fields

Resources,

Environment

& Climate

Food &

Nutrition

Quality of Life White

Biotechnology

Materials,

Systems &

Nanotechnology

Raw Material

Change

Key customer industries

Health & Nutrition

Consumer Goods

Transportation

Energy & Resources

Electronics

Agriculture

Construction

Technology fields Global needs

...

Batteries for Mobility

Enzymes

Heat Management for Construction

Organic Electronics

Functional Crop Care

Plant Biotechnology

E-Power Management

Wind Energy

Lightweight Composites

Water Solutions


Performance

Products

15%

Oil & Gas

20%

€20

billion

Functional

Materials &

Solutions

12%

Capex budget 2014-2018

Other

13%

Chemicals

33%


Asia Pacific

18%

€20

billion

South

America

4%

North America

25%

Europe

49%

Agricultural

Solutions

7%

Other

4%

by segment by region

Investments Capex budget 2014-2018 by segment and region*

* Source: BASF Report 2013


Expansion oil & gas activities

Aroma Ingredients Kuantan, Malaysia

Investments Major projects

Ammonia and gas-to-propylene in USA*

MDI plant Chongqing, China

Acrylic acid complex Camacari, Brazil

TDI plant Ludwigshafen, Germany

* Under evaluation


Acquisitions … will contribute to profitable growth in the future

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 …


0

1,000

2,000

3,000

4,000

2013 2015

Former cost saving programs

NEXT STEP

Operational excellence programs ~€1.3 billion earnings contribution from STEP by 2015

Annual earnings contribution

in € million Targeted annual earnings

contribution increased

from €1 billion to ~€1.3 billion

by end of 2015

Optimization of processes and

structures in all regions, e.g.

manufacturing, maintenance

supply chain

engineering, best-cost country

sourcing

Project timeline: 2012–2015

Between €0.9 and €1 billion by

the end of 2014 expected

One-time cost : ~€1 billion

STEP program


Operational excellence Strong track record

BASF Group* 2001–2013 Index

50

100

150

200

250

300

350

2001 2006 2009 2012

CAGR 2001 – 2013

10 %

8 %

3 %

EBITDA

Sales

Fixed costs

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

2013


Appendix I:

Chemicals Day


Sales to other BASF segments

Sales to 3rd parties

Chemicals segment grows by selling into

the BASF Verbund and to the market

* IFRS 10 & 11 impact: -€1.3Bn; Impact of new segment structure: +€5.3Bn

** Without Catalysts (now part of Functional Materials & Solutions segment)


0

100

200

300

400

500

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

2013

EBITDA margin Chemicals / oil price

Index 2001 = 100

Chemicals with stable profitability,

little correlation to oil price

EBITDA margin Chemicals

(as % of sales)

Oil price

* Without Catalysts (now part of Functional Materials & Solutions segment)


EBIT after cost of capital Chemicals

EBIT after cost of capital*

in million €

restated

Chemicals earned a premium on cost of capital even during the 2008 / 2009 recession***

* EBIT after cost of capital concept was introduced in 2004.

*** The former Plastics segment also earned a premium on cost of capital during the 2008 / 2009 recession.

Chemicals is a strong earnings

contributor

0

500

1.000

1.500

2.000

2004 2005 2006** 2007** 2008 2009 2010 2011 2012 2013

2,000

1,500

1,000

500

0

** Without Catalysts (now part of Functional Materials & Solutions segment)


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

2013

Chemicals generates strong and steady

free cash flow

Cash flow Chemicals

in million €


Free cash flow (EBITDA – additions to plant, property & equipment)

Since 2001, Chemicals contributed ~€17 billion of free cash flow to BASF Group

Operating cash flow (EBITDA)

2,000

3,000

4,000

1,000

-1,000

0


Shale gas in the U.S.: Lower energy and

feedstock cost

Increased U.S. shale gas

production disconnected

crude oil prices from natural

gas prices in North America

Increased production of

natural gas liquids (NGLs):

ethane, propane, butane

NGL price drop drives shift

to lighter cracker feed slates

– Improved profitability of

light feed crackers

– Narrow cracker output

Game changer shale gas

Source: IHS Inc. The use of this content was authorized in

advance by IHS. Any further use or redistribution of this content

is strictly prohibited without written permission by IHS. All rights

reserved.

Natural gas price Germany: Statistisches Bundesamt

“Grenzübergabepreis” Germany


Chemicals supplies key raw materials to

BASF downstream segments


Principles for internal supply driven and

merchant market driven products

Reliable supply

of key raw

materials

Access to

chemicals not

available in the

market

Internal supply driven

Capture value of

attractive chemicals

markets

Top-3 position in

target market

Merchant market driven

Economic advantages

through superior

technologies and

Verbund


Merchant

Market

Value chains

of the

BASF

Verbund

Ethylene

Propylene

Butadiene

Close to entire cracker output in

Ludwigshafen is used within Verbund

<5%

Raffinates

Aromatics

…

Cracker products

Ludwigshafen

>95%

BASF-YPC Nanjing

supply for captive demand:

2006: 60% 2014: 75%

BASF SE, Ludwigshafen, Germany 41


Philosophy of transfer pricing

Safe and flexible supply at competitive prices

Transfer prices linked to market prices

No cross-subsidizing

Value driven management in all steps of the

value chain

Additional Verbund benefits

Flexible planning along value chains

High security of supply, low logistics costs,

no sales and sourcing costs

Joint quality management

Joint engineering and process development

Cross-functional knowledge exchange

Additional capacity at Verbund sites

dilutes fixed costs

Chemicals is at the heart of the BASF

Production Verbund

Additional Verbund benefits

Transfer pricing

Downstream

divisions

Chemicals

segment


High capex intensity commands extraordinary focus on capex allocation and project control

Extensive use of cash-cost benchmarking

Preparation of solid business cases for all projects ensures sound decision-making

Projects approved only if cost of capital is earned even at hypothetical marginal producer price level

Chemicals segment accounts for one

third of all capex


by segment

Other

13%

Chemicals*

33%

Performance

Products

15%

€ 20

billion

Agricultural Solutions 7%

Oil & Gas

20%

Functional

Materials

& Solutions 12%

* Including gas-to-propylene project U.S. Gulf Coast, TDI Ludwigshafen, MDI Chongqing, Isononanol Maoming


0%

2%

4%

6%

8%

10%

12%

14%

16%

0

50

100

150

200

250

300

350

400

2000 2001 2002 2003 2004 2005 2006* 2007* 2008 2009 2010 2011 2012 2013 2014 2015 2016restated

Consolidated sales indexed

(2000 = 100)

Capex as

% of sales

Capex in line with revenues to support

top and bottom-line growth

Capex as % of sales

Chemicals segment

Consolidated sales

Chemicals segment

Capex outlook



Major Investment projects in the

Chemical segment

Ammonia and gas-to-propylene in USA*

MDI plant Chongqing, China

Acrylic acid complex Camacari, Brazil

TDI plant Ludwigshafen, Germany

* Under evaluation

Isononanol plant Maoming, China

Polyamides plant Caojing, China


Continuous process innovation

leads to best-in-class

technology

Proprietary BASF technology,

with best-in-class process

Significant cost synergies due

to two parallel projects

(Nanjing, Camacari)

Acrylic acid will supply

downstream units

(superabsorbent polymers;

acrylates)

Cost curve case study: Acrylic acid China

Acrylic Acid cash cost curve, China

average cash costs 2015 in US$/kg

Cash

co

sts

BA

SF

c

las

sic

pro

ce

ss

BA

SF

n

ew

pro

ce

ss

Source: BASF estimate

Production capacity


Leading single-train technology

New TDI plant strengthens and

benefits from Ludwigshafen

Verbund

Schwarzheide plant to be

closed after start-up of new

plant

New TDI plant re-balances

competitive environment of

European TDI market


TDI cash cost curve, Europe


New Ludwigshafen TDI plant

will provide superior cost

structure in Europe

Cost curve case study: TDI Europe


BASF caprolactam production focused on captive demand

BASF plants well positioned on cost curve

Best-in-class cost position in Europe

Constant process improvement ongoing

Worldscale caprolactam plants supply downstream demand of polyamide 6 applications

Further cost improvement in North America after start-up of ammonia JV with Yara

Caprolactam cash cost curve


BA

SF

No

rth

Am

eri

ca

BA

SF

Eu

rop

e

Production capacity

Cash

co

sts

Cost curve case study: Caprolactam



Converted Port Arthur

cracker with high feed

flexibility

# 2 chemical

producer in

the U.S.*

BASF

Shale gas is a major opportunity for

BASF

Low energy costs

(energy bill dropped by 55%

compared to 2007**)

Substantial profit

improvement

BASF will maximize

opportunity of low-cost

methane

Strengthen profitability

of the Verbund

Grow selected C1 value chains

* Based on sales to local customers ** U.S. data only, normalized costs for natural gas for energy production 49


Natural Gas Liquids

Ethane

Propane

Butane

► Cracker Feed

Shale gas is beneficial for methane and

ethane based chemistry

Methane and ethane to retain their advantageous cost position in North America

Low transportability of ethane

► Shift to ethane crackers

Propane and butane easy to transport

► Export with link to global market

Very limited transportability of

methane

Methane to remain an abundant

product with low pricing in North

America (despite LNG projects)

Methane

► Power plants

► Ammonia

► Methanol

Composition

of shale gas


Ammonia joint venture* enables low raw

materials costs for BASF downstreams

World-scale producer

economics plant with focus on

captive demand only (BASF)

Site: BASF Verbund site

Freeport, Texas

Capacity: 750 kt p.a.

Advantages of hydrogen &

nitrogen based technology:

– Lower capital investment

– No greenhouse gas

emissions

– Faster execution

Improved cost position for

BASF’s downstream products

Caprolactam Isocyanates Amines

Yara

…

Long-term sourcing contracts

Yara-BASF

joint venture

BASF Group

Ammonia

Nitrogen** Hydrogen**

merchant

market

* Project under evaluation ** Hydrogen and nitrogen are available in the Freeport area


Gas-to-propylene complex* covers

internal demand at attractive conditions

U.S. Gulf Coast location

World-scale plant

Start-up: ~2019

Port Arthur cracker and new

on-purpose propylene

complex to cover entire

captive propylene demand

Mid-term no sales to merchant

market

Lower cost than alternative

PDH technology

Cost leading gas-to-propylene

technology covers supply gap

Propylene supply North America

Acrylic acid Oxo-alcohols Polyols …

Propylene Propylene

(Port Arthur cracker)

Downstream

products

Methanol

Methane (from shale gas)

Flexible feed

(NGL’s, Naphtha)

* Project under evaluation


Appendix II:

Oil & Gas


2009

2013

Cumulative capex** 2009-2013 (billion €)

BASF Group

w/o Oil & Gas 7.4 (76%)

BASF Group

w/o Oil & Gas 14.5 (69%)

Oil & Gas 2.3 (24%)

Oil & Gas 6.4 (31%)

2009

2013 -

-

Average EBITDA* 2009-2013 (billion € p.a.)

* Excluding non-deductible oil taxes; restated figures from 2012 onwards in accordance with changes in IFRS

** Including additions to property, plant, equipment resulting from acquisitions, capitalized exploration, restoration obligations

and IT investments; restated figures from 2012 onwards in accordance with changes in IFRS

2009-2013:

– Oil & Gas: Solid profit

contributor to BASF Group

– Oil & Gas accounted for ~30%

of BASF Group capex

Oil & Gas will remain a significant

contributor to BASF’s total EBITDA

Capex share of Oil & Gas

business in BASF’s portfolio will

decline

Key facts

Share of Oil & Gas in BASF portfolio


Strong earnings contribution

from Oil & Gas

* Positive impact from special income due to the deconsolidation of Gascade Gastransport GmbH and

the disposal of a share in the Edvard Grieg oilfield (BASF Report 2013, pp. 86-87)

480 601

857 789

951

712

923 1.064

1.201

1,780

1,100

0

500

1.000

1.500

2.000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Q1-Q32014

Net income Oil & Gas (million €)


Strong free cash flow contribution to BASF

Group

Cash flow Oil & Gas* (million €)

0

500

1.000

1.500

2.000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Operating cash flow Oil & Gas

* Wintershall cash flow ** Free cash flow: Operating cash flow less payments related to property, plant and equipment and intangible assets

Free cash flow** Oil & Gas

40% of operating cash flow to BASF Group (avg. 2004-2013)


Oil & Gas value chain

Upstream Downstream

Exploration / Development / Production Transport Storage / Trading

Midstream Upstream

Focus on attractive

E&P activities Maintain gas

transport

business

Exit natural gas

storage and

trading business 1 2 3

Oil & Gas – Focus on upstream activities


Clear strategy for further profitable

growth

”Growing at the source”

Focus Technology Partnerships

BASF technology

Verbund

Enhanced oil

recovery (EOR)

Strategic partnerships

with regional resource

holders

Long-term profitable growth

E&P

Core regions

Limited exploration

risk


Four core regions and one development

region

North Africa

Europe Russia

Middle East

South America

Core region

Development region

Operating company

Current activities

.


Regional footprint 2013

Russia stands for roughly 50%

of total production

In 2013, natural gas accounted

for approx. 75% of total

production

Production

Russia provides strong reserve

base

Gas accounts for approx. 75%

of total reserves

Reserves

Russia 53%

North Africa/ Middle East 9%

Europe 18%

South America 20%

132 million

boe

North Africa/ Middle East 9%

Europe 13%

South America 13%

Proved 1P reserves by region 2013

1.5 billion

boe

Russia 65%

Production by region 2013


Production volumes (million boe)

0

50

100

150

200

2013 2015 target 2018 target

~190

132

Russia

South America

North Africa/Middle East

Europe

>160

* Without capex in non-consolidated participations

Continue to significantly invest in

core and development regions

Capex* of ~€4 billion between

2014 and 2018, thereof

– 70% Europe and Russia

– 15% North Africa/Middle East

– 15% South America

Key facts

Oil & Gas – Excellent further growth

opportunities


R/P ratio increased to 11 years

Total 1P reserves amounted to

~1.5 billion boe (2013)

Gas accounts for approx. 75%

of total reserves

Strong contribution to reserve

replenishment from assets in

Norway and Russia

Key facts 1P Reserves* (million boe) R/P (years)

Oil Natural gas R/P

* According to SEC guidelines; Libya onshore 51%

Reserve Replacement Rate (RRR, in percent)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

102 50 52 48 389 116 89 89 131 100 280

** 2013 adjusted to new conversion factor from m3 gas to barrel of oil equivalent (5,600 scf = 1 boe instead of 6,000 scf = 1 boe)

0

2

4

6

8

10

12

0

200

400

600

800

1.000

1.200

1.400

1.600

2003 2006 2009 2012 **

Reserves and R/P


Norway

25% in Maria Norway

32.7% in Brage

Active portfolio management –

Focus on promising projects

UK North Sea

14 licenses

15% in Luno II

Norway

Add. 2.5% in

Brage

Argentina

50% in Aguada Federal

Germany

15.79% of VNG

Acquisitions

Germany**

50% of WINGAS

WIEH, WIEE, Astora

Netherlands**

50% of Wintershall

Noordzee

63

Norway

15% in Gjøa

30% in Vega

(closing dates)

Own/joint-operated Divestitures (closing dates)

Norway

Add. 24.5% in

Vega 24% in Aasta

Hansteen*,

Add. 5% in Gjøa,

19% in Asterix

Non-own operated

Russia**

25% in

Achimov IV/V

Norway

Shares of

14 licences

* Including 13.2% in Polarled Pipeline ** Closing expected in autumn 2014; transaction financially retroactive to April 1, 2013

2011 2013 2012 2014 Expected

closing


2011 2012 2014 2013

Nov. signing of

legally binding

basic agreement

Dec. signing of

final agreement

Oct. signing

of framework

agreement

Dec. approval

by EU

Commission

2015 2016

Planned

production

start area IV/V

Effective date:

April 1

Implementation

of the swap

(e.g. developing new

company structure)

Autumn

expected

closing

2017

Status of the asset swap with Gazprom –

Timeline

Activities to be divested contributed in total ~€12 billion to sales and ~€500 million to EBITDA of BASF Group in 2013


Russia – Production ramp up Achimgaz

Production development

Achimgaz Block IA* (%)

* 100% share. Russian Standard Conditions (RSC)

Full field development Pilot phase Plateau production

Wells in production

Plateau production by 2018: Up to 8 billion m3 p.a.*


Recent transaction with Statoil

Strategic rationale of the transaction

* Pipeline project will provide route for produced gas from Aasta Hansteen field to onshore processing facilities

To strengthen Wintershall’s position in Norway by increasing participation

in producing oil and gas fields

To participate jointly with Statoil in promising development project

“Aasta Hansteen”

To get access to additional reserves and resources (2P/2C) of ~170 million

boe and assets with material exploration perspectivity

To increase production of Wintershall Norge from currently around

40,000 boe/day to about 60,000 boe/day

To expand position as field operator in Norway and to gain experience with

subsea operations by taking over operatorship in the Vega field*

To significantly increase Wintershall’s EBIT and future operating cash flow


Wintershall expands its oil and gas production and reserves in Norway

Intensification of the cooperation with Statoil, the leading Norwegian

oil and gas major, on exploration and development projects

Wintershall acquires shares in assets from Statoil containing reserves and

resources (2P/2C) of ~170 million boe and a stake in the Polarled pipeline

project*

Purchase price of US$1.25 billion plus up to US$50 million if Aasta Hansteen

field development is executed according to current project plan

Effective date January 1, 2014

Closing expected by the end of 2014

Recent transaction with Statoil

Transaction summary

* Pipeline project will provide route for produced gas from Aasta Hansteen field to onshore processing facilities


Production growth from solid project

pipeline (major projects)

* Closing expected autumn 2014

Length of development

phase

2013 2015 2017 2019 2021

Norway

Length of development phase

Skarfjell

Achimgaz (FFD) Achimov Blocks IV / V*

Block 4N

Shuwaihat

F 17 Area

Hibonite Ravn

Fenix Unconventionals CMA1 extension Vega Pleyade

Maria Aasta Hansteen

Edvard Grieg Knarr

//upload.wikimedia.org/wikipedia/commons/d/d8/Flag_of_Abu_Dhabi.svg


Natural gas transportation business

generates stable earnings

Key facts

Nord Stream (offshore)

– Wintershall share: 15.5%

– Capacity: 55 billion m3/a

– Both lines in operation

– Total capex: €7.4 billion

South Stream (offshore)

– Wintershall share: 15%

– Planned capacity: 63 billion

m³/a via 4 pipelines

– Total capex (offshore):

>€10 billion

– Start-up: End of 2015

Natural Gas Transportation

.

Poland Belarus

Ukraine Hungary

Romania

Russia

Bulgaria

Serbia

Slovenia Caspian

Sea Black Sea

Georgia

Germany

OPAL 36 bn. m³/a

NEL 20 bn. m³/a

Nord Stream 55 bn. m³/a

South Stream 63 bn. m³/a

Yuzhno

Russkoye

Achimov fields

Gas pipelines in operation

Nord Stream in operation

South Stream offshore (planned)

South Stream onshore (planned)

Production fields

1

2

Jamal 33 bn. m³/a

Transgas 95 bn. m³/a

* Start of production is planned not before 2016


Pipeline network well connected to major

European distribution hubs

Natural Gas Transportation

Ludwigshafen

Düsseldorf

Krefeld

Aachen

Köln

Kassel

Hameln

Emden

Greifswald

Hamburg Schwerin

Berlin

OP

AL

Brandov

Frankfurt/O.

Erfurt

NEL

STEGAL

Kiel

Netherlands

France

Poland

Czech

Republic

Nürnberg

GASCADE pipelines

Major european

distribution hubs

Brüssel

Zeebrügge

Balgzand

Bunde

NetConnect

Gaspool JAMAL

Burghausen

Prag

Bacton

Belgium

NBP

TTF

ZBH

Key facts

GASCADE


– Length: 2,400 km

– In operation since 1992

OPAL


– Capacity: 36 billion m³/a

– Length: 472 km

– In operation since 2011

NEL

– Wintershall share: 25.6%

– Capacity: 20 billion m³/a

– Length: 441 km

– In operation since 2012/2013


Oil & Gas – Outlook 2014

2013 2014

Financial

performance

Sales to 3rd parties:

EBIT before special items:

Net income:

€14.776 billion

€1.969 billion

€1.780 billion

Sales expected to be considerably below 2013

due the asset swap with Gazprom.

Slight increase in EBIT before special items due

to the first all-year inclusion of the acquired

activities from Statoil** and the expansion of the

Achimgaz production.

Production

volumes

Total production: 132 mmboe Production expected on similar level despite the

suspension of the onshore production in Libya.

Sales volumes Natural gas sales: 52 billion m³ Divestment of natural gas trading and storage

activities planned for end 2014.

Investments/

Expenditures

Investments* 2013:

thereof E&P:

thereof Natural Gas Trading:

~€2.954 billion

~€2.834 billion

~€0.120 billion

Investments*** 2014-2018: ~€4.0 billion (Predominantly in E&P)

Macroeconomic

assumptions

Average oil price (brent):

Average exchange rate:

$109 per barrel

$1.33 per €

Forecast 2014: $105 per barrel

$1.35 per €

* Incl. tangible assets from acquisitions, activated exploration expenditures, without capex in non-consolidated participations

*** Without tangible assets from acquisitions and activated exploration expenditure, without capex in non-consolidated participations

** Former Statoil transaction with closing in 2013


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