BASF Capital Market Story August 2016 1

BASF Capital Market Story

Ingo RoseDirectorInvestor Relations

RoadshowMontreal

September 29 2016

BASF Capital Market Story September 2016 2

150 years

Cautionary note regarding forward-looking statements

This presentation may contain forward-looking statements that are subject to risks anduncertainties including those pertaining to the anticipated benefits to be realized from theproposals described herein Forward-looking statements may include in particular statementsabout future events future financial performance plans strategies expectations prospectscompetitive environment regulation and supply and demand BASF has based these forward-looking statements on its views and assumptions with respect to future events and financialperformance Actual financial performance could differ materially from that projected in theforward-looking statements due to the inherent uncertainty of estimates forecasts andprojections and financial performance may be better or worse than anticipated Given theseuncertainties readers should not put undue reliance on any forward-looking statements Theinformation contained in this presentation is subject to change without notice and BASF doesnot undertake any duty to update the forward-looking statements and the estimates andassumptions associated with them except to the extent required by applicable laws andregulations

BASF Capital Market Story September 2016 3

150 years

BASF ndash Share information

Symbol BAS

Trading Platform Deutsche Boumlrse

ISIN DE000BASF111

IPO January 30 1952

Type of shares Registered shares

Trading lot none one share is tradable

Free float (according to Deutsche Boumlrse)100

Number of subscribed shares outstanding (as of 12312015)918478694

Symbol BASFY

OTC Trading Platform OTCQX

CUSIP 055262505

Ratio 1 ADR 1 Ordinary Share

Depositary bank Deutsche Bank Trust Company Americasndash Tel +1 212 250 9100 (New York broker desk)

ndash Tel +44 207 547 6500 (London broker desk)

ndash E-mail adrdbcom

ndash Website wwwadrdbcom

Depositary bankrsquos local custodian Deutsche Bank AG Frankfurt

Ordinary Share information ADR information

BASF Capital Market Story September 2016 4

150 years

Chemistry as an enabler BASF has superior growth

opportunities ndash sustainable innovationsndash investmentsndash emerging markets

The 1 chemical company euro704 billion sales euro67

billion EBIT bSI in 2015 1-3 in ~70 of businesses

present in almost all countries

6 integrated Verbund sites production in 60 countries

A track record of strong sales and earnings growth

gt35 dividend yield in every single year from 2006-2015

~euro67 billion market capitalization on August 31 2016

PerspectiveLudwigshafenGermany

AntwerpBelgium

NanjingChina

KuantanMalaysiaGeismar

LouisianaFreeportTexas

Verbund site

Positioning

We create chemistry for a sustainable future

Performance

BASF Capital Market Story September 2016 5

150 years

Percentage of sales 2015

Not depicted here ~4 of Group sales reported as lsquoOtherlsquo Natural Gas Trading has been divested on Sep 30 2015

BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion

BASF Capital Market Story September 2016 6

150 years

Global reduction in carbon emissions of 6 million metric tons pa and reduction of waste

Example Ludwigshafen siteavoidance of 7 million metric tons of freight pa= 280000 fewer truckloads

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

Verbund Unique competitive advantage

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

Verbund generates gteuro1 billion pa global cost savings amp supports sustainability

BASF Capital Market Story September 2016 7

150 years

Financial figures Q2 2016 Q2 2015 Change

Sales euro145 billion euro191 billion (24)

EBITDA euro28 billion euro30 billion (7)

EBIT before special items euro17 billion euro20 billion (16)

EBIT euro17 billion euro20 billion (16)

Net income euro11 billion euro13 billion (14)

Reported EPS euro119 euro138 (14)

Adjusted EPS euro130 euro149 (13)

Operating cash flow euro23 billion euro28 billion (17)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (7) (16) (3)

Q2 2016 Financial figures for BASF Group

BASF Capital Market Story September 2016 8

150 years

0

1

2

3

4

5

2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016

Free cash flow development

Cash provided by operating activities less capex 2009 adjusted for re-classification of settlement payments for currency derivatives

Free cash flow(in billion euro)

32

25

32

39 37

26

32

17

36

14

Diagramm1

Free Cash Flow

3245

2502

3186

3912

3695

2587

321

17

36

14

Sheet1

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

	2007		2008		2009		2010		2011		2012		2013		2014		2015		H1 2016
Free Cash Flow		3245		2502		3186		3912		3695		2587		3210		17		36		14

2007
2008
2009
2010
2011
2012
2013
2014
2015
H1 2016

BASF Capital Market Story September 2016 2

150 years

Cautionary note regarding forward-looking statements

This presentation may contain forward-looking statements that are subject to risks anduncertainties including those pertaining to the anticipated benefits to be realized from theproposals described herein Forward-looking statements may include in particular statementsabout future events future financial performance plans strategies expectations prospectscompetitive environment regulation and supply and demand BASF has based these forward-looking statements on its views and assumptions with respect to future events and financialperformance Actual financial performance could differ materially from that projected in theforward-looking statements due to the inherent uncertainty of estimates forecasts andprojections and financial performance may be better or worse than anticipated Given theseuncertainties readers should not put undue reliance on any forward-looking statements Theinformation contained in this presentation is subject to change without notice and BASF doesnot undertake any duty to update the forward-looking statements and the estimates andassumptions associated with them except to the extent required by applicable laws andregulations

BASF Capital Market Story September 2016 3

150 years

BASF ndash Share information

Symbol BAS

Trading Platform Deutsche Boumlrse

ISIN DE000BASF111

IPO January 30 1952

Type of shares Registered shares

Trading lot none one share is tradable

Free float (according to Deutsche Boumlrse)100

Number of subscribed shares outstanding (as of 12312015)918478694

Symbol BASFY

OTC Trading Platform OTCQX

CUSIP 055262505

Ratio 1 ADR 1 Ordinary Share

Depositary bank Deutsche Bank Trust Company Americasndash Tel +1 212 250 9100 (New York broker desk)

ndash Tel +44 207 547 6500 (London broker desk)

ndash E-mail adrdbcom

ndash Website wwwadrdbcom

Depositary bankrsquos local custodian Deutsche Bank AG Frankfurt

Ordinary Share information ADR information

BASF Capital Market Story September 2016 4

150 years

Chemistry as an enabler BASF has superior growth

opportunities ndash sustainable innovationsndash investmentsndash emerging markets

The 1 chemical company euro704 billion sales euro67

billion EBIT bSI in 2015 1-3 in ~70 of businesses

present in almost all countries

6 integrated Verbund sites production in 60 countries

A track record of strong sales and earnings growth

gt35 dividend yield in every single year from 2006-2015

~euro67 billion market capitalization on August 31 2016

PerspectiveLudwigshafenGermany

AntwerpBelgium

NanjingChina

KuantanMalaysiaGeismar

LouisianaFreeportTexas

Verbund site

Positioning

We create chemistry for a sustainable future

Performance

BASF Capital Market Story September 2016 5

150 years

Percentage of sales 2015

Not depicted here ~4 of Group sales reported as lsquoOtherlsquo Natural Gas Trading has been divested on Sep 30 2015

BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion

BASF Capital Market Story September 2016 6

150 years

Global reduction in carbon emissions of 6 million metric tons pa and reduction of waste

Example Ludwigshafen siteavoidance of 7 million metric tons of freight pa= 280000 fewer truckloads

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

Verbund Unique competitive advantage

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

Verbund generates gteuro1 billion pa global cost savings amp supports sustainability

BASF Capital Market Story September 2016 7

150 years

Financial figures Q2 2016 Q2 2015 Change

Sales euro145 billion euro191 billion (24)

EBITDA euro28 billion euro30 billion (7)

EBIT before special items euro17 billion euro20 billion (16)

EBIT euro17 billion euro20 billion (16)

Net income euro11 billion euro13 billion (14)

Reported EPS euro119 euro138 (14)

Adjusted EPS euro130 euro149 (13)

Operating cash flow euro23 billion euro28 billion (17)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (7) (16) (3)

Q2 2016 Financial figures for BASF Group

BASF Capital Market Story September 2016 8

150 years

0

1

2

3

4

5

2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016

Free cash flow development

Cash provided by operating activities less capex 2009 adjusted for re-classification of settlement payments for currency derivatives

Free cash flow(in billion euro)

32

25

32

39 37

26

32

17

36

14

Diagramm1

Free Cash Flow

3245

2502

3186

3912

3695

2587

321

17

36

14

Sheet1

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

	2007		2008		2009		2010		2011		2012		2013		2014		2015		H1 2016
Free Cash Flow		3245		2502		3186		3912		3695		2587		3210		17		36		14

2007
2008
2009
2010
2011
2012
2013
2014
2015
H1 2016

BASF Capital Market Story September 2016 3

150 years

BASF ndash Share information

Symbol BAS

Trading Platform Deutsche Boumlrse

ISIN DE000BASF111

IPO January 30 1952

Type of shares Registered shares

Trading lot none one share is tradable

Free float (according to Deutsche Boumlrse)100

Number of subscribed shares outstanding (as of 12312015)918478694

Symbol BASFY

OTC Trading Platform OTCQX

CUSIP 055262505

Ratio 1 ADR 1 Ordinary Share

Depositary bank Deutsche Bank Trust Company Americasndash Tel +1 212 250 9100 (New York broker desk)

ndash Tel +44 207 547 6500 (London broker desk)

ndash E-mail adrdbcom

ndash Website wwwadrdbcom

Depositary bankrsquos local custodian Deutsche Bank AG Frankfurt

Ordinary Share information ADR information

BASF Capital Market Story September 2016 4

150 years

Chemistry as an enabler BASF has superior growth

opportunities ndash sustainable innovationsndash investmentsndash emerging markets

The 1 chemical company euro704 billion sales euro67

billion EBIT bSI in 2015 1-3 in ~70 of businesses

present in almost all countries

6 integrated Verbund sites production in 60 countries

A track record of strong sales and earnings growth

gt35 dividend yield in every single year from 2006-2015

~euro67 billion market capitalization on August 31 2016

PerspectiveLudwigshafenGermany

AntwerpBelgium

NanjingChina

KuantanMalaysiaGeismar

LouisianaFreeportTexas

Verbund site

Positioning

We create chemistry for a sustainable future

Performance

BASF Capital Market Story September 2016 5

150 years

Percentage of sales 2015

Not depicted here ~4 of Group sales reported as lsquoOtherlsquo Natural Gas Trading has been divested on Sep 30 2015

BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion

BASF Capital Market Story September 2016 6

150 years

Global reduction in carbon emissions of 6 million metric tons pa and reduction of waste

Example Ludwigshafen siteavoidance of 7 million metric tons of freight pa= 280000 fewer truckloads

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

Verbund Unique competitive advantage

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

Verbund generates gteuro1 billion pa global cost savings amp supports sustainability

BASF Capital Market Story September 2016 7

150 years

Financial figures Q2 2016 Q2 2015 Change

Sales euro145 billion euro191 billion (24)

EBITDA euro28 billion euro30 billion (7)

EBIT before special items euro17 billion euro20 billion (16)

EBIT euro17 billion euro20 billion (16)

Net income euro11 billion euro13 billion (14)

Reported EPS euro119 euro138 (14)

Adjusted EPS euro130 euro149 (13)

Operating cash flow euro23 billion euro28 billion (17)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (7) (16) (3)

Q2 2016 Financial figures for BASF Group

BASF Capital Market Story September 2016 8

150 years

0

1

2

3

4

5

2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016

Free cash flow development

Cash provided by operating activities less capex 2009 adjusted for re-classification of settlement payments for currency derivatives

Free cash flow(in billion euro)

32

25

32

39 37

26

32

17

36

14

Diagramm1

Free Cash Flow

3245

2502

3186

3912

3695

2587

321

17

36

14

Sheet1

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

	2007		2008		2009		2010		2011		2012		2013		2014		2015		H1 2016
Free Cash Flow		3245		2502		3186		3912		3695		2587		3210		17		36		14

2007
2008
2009
2010
2011
2012
2013
2014
2015
H1 2016

BASF Capital Market Story September 2016 4

150 years

Chemistry as an enabler BASF has superior growth

opportunities ndash sustainable innovationsndash investmentsndash emerging markets

The 1 chemical company euro704 billion sales euro67

billion EBIT bSI in 2015 1-3 in ~70 of businesses

present in almost all countries

6 integrated Verbund sites production in 60 countries

A track record of strong sales and earnings growth

gt35 dividend yield in every single year from 2006-2015

~euro67 billion market capitalization on August 31 2016

PerspectiveLudwigshafenGermany

AntwerpBelgium

NanjingChina

KuantanMalaysiaGeismar

LouisianaFreeportTexas

Verbund site

Positioning

We create chemistry for a sustainable future

Performance

BASF Capital Market Story September 2016 5

150 years

Percentage of sales 2015

Not depicted here ~4 of Group sales reported as lsquoOtherlsquo Natural Gas Trading has been divested on Sep 30 2015

BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion

BASF Capital Market Story September 2016 6

150 years

Global reduction in carbon emissions of 6 million metric tons pa and reduction of waste

Example Ludwigshafen siteavoidance of 7 million metric tons of freight pa= 280000 fewer truckloads

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

Verbund Unique competitive advantage

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

Verbund generates gteuro1 billion pa global cost savings amp supports sustainability

BASF Capital Market Story September 2016 7

150 years

Financial figures Q2 2016 Q2 2015 Change

Sales euro145 billion euro191 billion (24)

EBITDA euro28 billion euro30 billion (7)

EBIT before special items euro17 billion euro20 billion (16)

EBIT euro17 billion euro20 billion (16)

Net income euro11 billion euro13 billion (14)

Reported EPS euro119 euro138 (14)

Adjusted EPS euro130 euro149 (13)

Operating cash flow euro23 billion euro28 billion (17)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (7) (16) (3)

Q2 2016 Financial figures for BASF Group

BASF Capital Market Story September 2016 8

150 years

0

1

2

3

4

5

2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016

Free cash flow development

Cash provided by operating activities less capex 2009 adjusted for re-classification of settlement payments for currency derivatives

Free cash flow(in billion euro)

32

25

32

39 37

26

32

17

36

14

Diagramm1

Free Cash Flow

3245

2502

3186

3912

3695

2587

321

17

36

14

Sheet1

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

	2007		2008		2009		2010		2011		2012		2013		2014		2015		H1 2016
Free Cash Flow		3245		2502		3186		3912		3695		2587		3210		17		36		14

2007
2008
2009
2010
2011
2012
2013
2014
2015
H1 2016

BASF Capital Market Story September 2016 5

150 years

Percentage of sales 2015

Not depicted here ~4 of Group sales reported as lsquoOtherlsquo Natural Gas Trading has been divested on Sep 30 2015

BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion

BASF Capital Market Story September 2016 6

150 years

Global reduction in carbon emissions of 6 million metric tons pa and reduction of waste

Example Ludwigshafen siteavoidance of 7 million metric tons of freight pa= 280000 fewer truckloads

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

Verbund Unique competitive advantage

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

Verbund generates gteuro1 billion pa global cost savings amp supports sustainability

BASF Capital Market Story September 2016 7

150 years

Financial figures Q2 2016 Q2 2015 Change

Sales euro145 billion euro191 billion (24)

EBITDA euro28 billion euro30 billion (7)

EBIT before special items euro17 billion euro20 billion (16)

EBIT euro17 billion euro20 billion (16)

Net income euro11 billion euro13 billion (14)

Reported EPS euro119 euro138 (14)

Adjusted EPS euro130 euro149 (13)

Operating cash flow euro23 billion euro28 billion (17)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (7) (16) (3)

Q2 2016 Financial figures for BASF Group

BASF Capital Market Story September 2016 8

150 years

0

1

2

3

4

5

2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016

Free cash flow development

Cash provided by operating activities less capex 2009 adjusted for re-classification of settlement payments for currency derivatives

Free cash flow(in billion euro)

32

25

32

39 37

26

32

17

36

14

Diagramm1

Free Cash Flow

3245

2502

3186

3912

3695

2587

321

17

36

14

Sheet1

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

	2007		2008		2009		2010		2011		2012		2013		2014		2015		H1 2016
Free Cash Flow		3245		2502		3186		3912		3695		2587		3210		17		36		14

2007
2008
2009
2010
2011
2012
2013
2014
2015
H1 2016

BASF Capital Market Story September 2016 6

150 years

Global reduction in carbon emissions of 6 million metric tons pa and reduction of waste

Example Ludwigshafen siteavoidance of 7 million metric tons of freight pa= 280000 fewer truckloads

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

Verbund Unique competitive advantage

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

Verbund generates gteuro1 billion pa global cost savings amp supports sustainability

BASF Capital Market Story September 2016 7

150 years

Financial figures Q2 2016 Q2 2015 Change

Sales euro145 billion euro191 billion (24)

EBITDA euro28 billion euro30 billion (7)

EBIT before special items euro17 billion euro20 billion (16)

EBIT euro17 billion euro20 billion (16)

Net income euro11 billion euro13 billion (14)

Reported EPS euro119 euro138 (14)

Adjusted EPS euro130 euro149 (13)

Operating cash flow euro23 billion euro28 billion (17)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (7) (16) (3)

Q2 2016 Financial figures for BASF Group

BASF Capital Market Story September 2016 8

150 years

0

1

2

3

4

5

2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016

Free cash flow development

Cash provided by operating activities less capex 2009 adjusted for re-classification of settlement payments for currency derivatives

Free cash flow(in billion euro)

32

25

32

39 37

26

32

17

36

14

Diagramm1

Free Cash Flow

3245

2502

3186

3912

3695

2587

321

17

36

14

Sheet1

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

	2007		2008		2009		2010		2011		2012		2013		2014		2015		H1 2016
Free Cash Flow		3245		2502		3186		3912		3695		2587		3210		17		36		14

2007
2008
2009
2010
2011
2012
2013
2014
2015
H1 2016

BASF Capital Market Story September 2016 7

150 years

Financial figures Q2 2016 Q2 2015 Change

Sales euro145 billion euro191 billion (24)

EBITDA euro28 billion euro30 billion (7)

EBIT before special items euro17 billion euro20 billion (16)

EBIT euro17 billion euro20 billion (16)

Net income euro11 billion euro13 billion (14)

Reported EPS euro119 euro138 (14)

Adjusted EPS euro130 euro149 (13)

Operating cash flow euro23 billion euro28 billion (17)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (7) (16) (3)

Q2 2016 Financial figures for BASF Group

BASF Capital Market Story September 2016 8

150 years

0

1

2

3

4

5

2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016

Free cash flow development

Cash provided by operating activities less capex 2009 adjusted for re-classification of settlement payments for currency derivatives

Free cash flow(in billion euro)

32

25

32

39 37

26

32

17

36

14

Diagramm1

Free Cash Flow

3245

2502

3186

3912

3695

2587

321

17

36

14

Sheet1

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

	2007		2008		2009		2010		2011		2012		2013		2014		2015		H1 2016
Free Cash Flow		3245		2502		3186		3912		3695		2587		3210		17		36		14

2007
2008
2009
2010
2011
2012
2013
2014
2015
H1 2016

BASF Capital Market Story September 2016 8

150 years

0

1

2

3

4

5

2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016

Free cash flow development

Cash provided by operating activities less capex 2009 adjusted for re-classification of settlement payments for currency derivatives

Free cash flow(in billion euro)

32

25

32

39 37

26

32

17

36

14

Diagramm1

Free Cash Flow

3245

2502

3186

3912

3695

2587

321

17

36

14

Sheet1

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

	2007		2008		2009		2010		2011		2012		2013		2014		2015		H1 2016
Free Cash Flow		3245		2502		3186		3912		3695		2587		3210		17		36		14

2007
2008
2009
2010
2011
2012
2013
2014
2015
H1 2016

Diagramm1

Free Cash Flow

3245

2502

3186

3912

3695

2587

321

17

36

14

Sheet1

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

	2007		2008		2009		2010		2011		2012		2013		2014		2015		H1 2016
Free Cash Flow		3245		2502		3186		3912		3695		2587		3210		17		36		14

2007
2008
2009
2010
2011
2012
2013
2014
2015
H1 2016

Sheet1

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

	2007		2008		2009		2010		2011		2012		2013		2014		2015		H1 2016
Free Cash Flow		3245		2502		3186		3912		3695		2587		3210		17		36		14

BASF Capital Market Story September 2016 9

150 years

Outlook 2016 for BASF Group confirmed

Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading

and storage activities and the lower oil and gas prices We expect EBIT before special items to be slightly below the previous year level due to

significantly lower earnings in Oil amp Gas

Assumptions 2016 GDP growth +23 Growth in industrial production +20 Growth in chemical production (excl pharma) +34 Exchange rate $110 per euro Oil price (Brent) $40 per barrel

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

BASF Capital Market Story September 2016 10

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

BASF Capital Market Story September 2016 11

150 years

Components of growth

2010 2011 indicative adjusted for IFRS 10 amp 11

596

704+105 -14 +26 -09

20

40

60

80

2010 2015

Volumes

PricesFX MampA

Sales analysis 2010 ndash 2015 (in billion euro)

(in billion euro) Net sales 2010 Volumes Prices FX MampA Sales CAGR 2010 - 2015

BASF Group wo Oil amp Gas 514 +28

(+11 CAGR) -09 +26 +16 +23

Oil amp Gas 82 +77 (+142 CAGR) -05 +00 -25 +96

34

CAGR

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

BASF Capital Market Story September 2016 12

150 years

Functional crop care Personal care amp food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil amp Gas Refinish coatings Surface treatment

BASFcore business

Strong partnerships

Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

Selected transactions 2010 minus until today

Acquisitions

~ euro52 billion salesin emerging and innovation-driven

businesses

Divestitures

Styrenics Fertilizers Selected assets in Oil amp Gas Natural gas trading amp storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings

~ euro20 billion salesin businesses with

limited fit and differentiation

potential

Portfolio development towards more market-driven and innovative businesses

Closing expected in 2016

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

BASF Capital Market Story September 2016 13

150 years

Steady earnings growth

2010 2011 indicative adjusted for IFRS 10 amp 11 2001 ndash 2009 as reported without non-compensable foreign income taxes on oil production

EBIT and EBITDA(in billion euro 2001 - 2015)

37

47 46

70 72

8489

77

65

99

112

100104

110 106

56

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H12016

EBITEBITDA

07

22 22

45 4855

60

46

28

67

8067 72

76

62

36

CAGREBITDA

79CAGREBIT

166

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

BASF Capital Market Story September 2016 14

150 years

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Strong track record in operational excellence

EBITDA

Sales

Excl companies with major IFRS 1011 restatements ie BASF YPC Nanjing Libya onshore other Oil amp Gas and Catalysts companies

BASF Group 2001ndash2015(indexed CAGR 2001ndash2015)

Fixed Costs

CAGREBITDA

9

CAGRSales

6

CAGRFixed Costs3

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

BASF Capital Market Story September 2016 15

150 years

00

05

10

15

20

25

30

2006 2009 2012 2015

290

We want to grow or at least maintain our dividend at the previous yearrsquos level

Dividend of euro290 per share an increase of 36

Dividend yield of 41 in 2015

Dividend yield above 35in any given year since 2006

46

Attractive shareholder return

Key facts 2015

Dividend per share (euro)

050

100

150

200

Dividend yield based on share price at year-end

41 38 70 39 37Yield 37

250

35

300

40 41

150

195 195170

220250 260 270

Dividend policy

280

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

BASF Capital Market Story September 2016 16

150 years

Average annual performance with dividends reinvested

0 3 6 9 12 15

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+61

Last 5 yearsSeptember 2011 ndash August 2016

+119

+88

+128

+101

Last 10 yearsSeptember 2006 ndash August 2016

BASF

+75

+08

+128

Delivering consistent long-term value

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

Diagramm1

Ost

91

120

81

75

61

08

128

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

MSCI World
DAX
Euro Stoxx
BASF

Sheet1

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

	MSCI World		DAX		Euro Stoxx		BASF
Ost		75		610		08		128

BASF Capital Market Story September 2016 17

Business development

Path forward Our priorities

Appendix

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 18

150 years

Grow sales and earnings faster than global chemical production driven by

ndash Continued focus on innovations

ndash Capital expenditures

ndash Acquisitions

ndash Operational excellence and Verbund advantages

Focus on cash generationconversion

Continue with our progressive dividend policy

Focus on pruning our portfolio

Maintain industry-leading position in sustainability

The path forward Our priorities

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 19

150 years

Managing volatility BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe 2015)

BASF hydrocarbon consumption almost equals hydrocarbon production

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

153

gt100

Naturalgas

Oil and liquids

Natural gas for energy and as raw material

Naphtha and other oil-based raw materials

40

113

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 20

150 years

0

100

200

300

400

500

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

2013 2014 2015 H12016

EBITDA margin Chemicals oil price(indexed 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 amp Solutions segment)

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 21

150 years

Strategic lever Continuous portfolio development

Specialties and solutions

Differentiated commodities

target(in of sales)

~ 50 ~ 50

Maintaining a balanced portfolio

Divestment of businesses eg due to loss of differentiation

Divestment of businesses eg due to

lower market attractiveness

Commoditization leads to restructuring

Growth fields

Innovation pipeline

Acquisitions

Excluding Oil amp Gas sales

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 22

150 years

Provide a minimum return on investment of 8 pa 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 hellip

Strategic lever Acquisitions

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 23

150 years

BASF to acquire ChemetallTransaction highlights

Purchase price of US$32 billion (debt free)

All-cash offer financing secured

Expected closing of transaction by the end of 2016

Synergies on industry-typical level

EPS accretive in year 1 excluding integration costs in year 2 including integration costs

Transaction will significantly enhance BASF Coatingsrsquo position as complete solutions provider

Chemetall ndash a global technology and innovation leader in metals surface treatment

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 24

150 years

Chemetall ndash a global leader in surface treatment products and services

FiguresFacts

Sales2015 US$845 million 2016E US$851 million2017E US$895 million

EBITDA2015 US$202 million2016E US$217 million2017E US$231 million

EBITDA margin2015 242016E 252017E 26

CAGR sales(2007 ndash 2015) ~7 (at constant exchange rates)

Key customer industries

Automotive aerospace coilmetal forming

Regional sales~50 Western Europe~30 North America~20 Emerging markets mainly Asia

Employees ~2500 (~50 sales professionals)

Sites 21 production sites in all regions10 RampD sites

One of the strongest globally managed brands in the sector

Proprietary manufacturing technologies rigorous product quality and performance standards

Leading market positions in the automotive aerospace and cold forming segments

Long-standing service-intensive customer relationships

Significant global presence and record of accelerated expansion in emerging markets

Track record of strong growth and high profitability

average analystsrsquo estimates

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 25

150 years

Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment

Chemetall

Pre-treatment

In-depth customer insights across wide industry range

Recognized technology leader in metal surface treatment

Complete portfolio beyond pure surface treatment

BASF

Coatings

Excellent customer access and approvals especially in automotive

Well recognized customer service offering in coatings

Chemical know-how and strong RampD platforms within BASF Group

Complete surface treatment provider

Offer full solution competence to customers across wide range of industries

Benefit from convergence of pre-treatment and coatings offering superior product and process solutions

Develop superior application processes leveraging joint expertise

+

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 26

150 years

Chemetall ndash an excellent strategic fit for BASF Coatings

Technology adjacency

Compelling combination of surface treatment and coatings technologies Creates unmatched ldquosolution competencerdquo for customers

Access to key growth markets

Superior access to growth industries (eg automotive aerospace) Global footprint with local production technical centers in China and India

Downstream solution business

Complex formulation businesses based on application know-how Customer centricity product quality and technical service as differentiators

Enhanced technology basis

Growth opportunities through combining broad technical and application competence with BASFrsquos chemistry and formulation know-how

Strong and robust financials

Excellent track record of growth above market and attractive margins ldquoAsset lightrdquo business model with strong free cash flow conversion

Industry-leading expert team

High-quality resources and technical expertise ~1200 sales professionals with in-depth application and process know-how

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 27

150 years

Strategic leverCapital expenditures

Differentiated commodities With proprietary technology andor Verbund advantages

Focus onndash emerging markets ndash backward integration in the USndash upgrading our asset base in Europe

Specialties and solutions Incremental investments for new products Regional expansion of businesses

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

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 28

150 years

Investments for organic growth

Performance Products16

Oil amp Gas24

euro195billion

FunctionalMaterials ampSolutions12

Capex budget 2016-2020

Other14

Chemicals30

Capex budget 2016-2020

Asia Pacific18

euro195billion

South America9

North America26

Europe46

AgriculturalSolutions4

Other1

by segment by region

Including Africa and Middle East

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 29

150 years

Strategic lever Innovations

Allow for creativity

Balance incremental und disruptive innovations

Manage innovation pipeline efficiently on all levels

Build on our global RampD Verbund

Leverage external collaborations even more

Align RampD activities with business models

ndash Differentiated commoditiesbull Focus on improving processes and addressing raw material change bull Launch selected product innovations

ndash Specialties and solutionsbull Develop new tailored offerings in close collaboration with customersbull Pursue solution-oriented approach

Keep annual RampD spending at ~3 of sales

Without Oil amp Gas

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 30

150 years

euro195 billion RampD expendituresin 2015 to be maintained in 2016

~10000 employees in RampD

~3000 projects

Ranked No1 in thePatent Asset Indextrade

~1000 new patents in 2015

Research Verbund Cooperations with more than 600 excellent partners from universities start-upsand industry

Strong commitment to innovationInnovations for a sustainable future

Key facts

1617

18 19 195

00

05

10

15

20

2011 2012 2013 2014 2015

RampD expenditures (billion euro)

Chemicals11

Performance Products20

Functional Mat amp Sol20

Agricultural Solutions26

Oil amp Gas2

Corporate Research21

20

15

10

05

0

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 31

150 years

0

50

100

150

BASF Competitors

FWCtradeCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions

Removes particulatesFilters amp combusts particulates

Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

FWCtrade introduced in 2013 Sustains BASFrsquos leading technology position

Leading position Global mobile emissions catalysts patents

2009 ndash 2013 Hydrocarbons carbon monoxide nitrogen oxides httpswwwbasfcomencompanynews-and-mediascience-around-uscatalytic-converterhtml

FWCtrade reduces emission of gaseous pollutants and particulates

HC

CO

NOx

N2

H2O

CO2

Particulates

Innovation Four-Way Conversion Catalyst (FWCtrade)

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 32

150 years

Automotive is a growth business for BASF

Excl precious metals coatings refinish business

BASF sales to Automotive vs global vehicle production(indexed)

50

75

100

125

150

175

2007 2008 2009 2010 2011 2012 2013 2014 2015

BASF salesto Automotive

CAGR

67

Global vehicleproduction

CAGR shown for 2007 ndash 2015

CAGR

28

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 33

150 years

Innovation Green Sensereg

Concrete for sustainable construction

BASFrsquos Green Sensereg Concrete system consists of

1) Innovative admixture products

2) Concrete mix services

3) Eco-efficiency analysis

Replaces up to 70 of cement with recycled materials

Superior eco-efficiency

Applied in the construction of landmark projects eg One World Trade Center NYC

Envi

ronm

enta

l Im

pact

ReferenceConcrete

High Low

Low

Total Cost of Ownership

Hig

h

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 34

150 years

Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners

Trilonreg M ndash alternative to phosphate for automatic dish washing High sustainability performance bio-degradable and

eco-friendly Fast growing global market demand driven by

regulatory changes and consumer demand 2010 Capacity expansion to 120000 tons 2015 Startup of a new Trilonreg M world-scale plant in

Theodore Alabama

Compared with alternative chelating agents Trilonreg M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 35

150 years

Innovation Engagement in digital agronomic decision support

BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data technology and people To improve productivity and sustainability

First tools are launched Maglis New agricultural platform offering a range of

practical and intuitive tools for gathering interpreting and monitoring of crop management information

Tools Maglis Crop Plan Maglis Customer Navigator Maglis Sustainability Assessment

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 36

150 years

22 02

Novel methodology to screen and steer our portfolio

266 Acceleratorsndash outgrow their markets

by 2-10ndash deliver margins gt10

above the averagendash represent gt60 of BASFrsquos

RampD pipeline 71 Performers lt1 Challenged products

More than 60000 product applications analyzed representing euro649 billion in sales or 954 of BASFrsquos portfolio

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

Strategic lever Sustainability Sustainable Solution Steering

266

710

Substantial sustainability contribution in the value chain

Meets basic sustainability standards in the market

Specific sustainability issue which is actively addressed

Significant sustainability concernaction plan in development

SustainableSolutionSteering

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

BASF Capital Market Story September 2016 37

150 years

0

1000

2000

3000

4000

2015 2018

Annual earnings contribution(in million euro)

Targeted annual earnings contribution of euro1 billion from end of 2018 on

Optimization of processes and structures in all regions egndash manufacturingndash incremental capacitiesndash productivity increase

Project timeline 2016ndash2018

DrivE program

Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution

NEXT 2008-2011 DrivE 2016-2018

STEP 2012-2015

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

Diagramm1

Sheet1REF

NEXT

STEP

NewPro

1000

1300

1000

1300

1000

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

2015		2015		2015		2015
2018		2018		2018		2018

Sheet1

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

	2014		2015		2018
NEXT		1000		1000		1000
STEP		1000		1300		1300
NewPro				1000

BASF Capital Market Story September 2016 38

150 years

Profitability of BASF will grow faster than global chemical production

Sales growthSlightly faster than the global chemical production

EBITDA growthWell above global chemical production

Remain a strong cash providerContinuously generate high levels of free cash flow

Financial targets for the coming years

Deliver attractive returnsEarn a significant premium on cost of capital

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

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

BASF Capital Market Story September 2016 39

Business development

Path forward Our priorities

Appendix ndash Q2 2016 reporting

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

BASF Capital Market Story September 2016 40

150 years

ChemicalsHigher volumes but continuing margin pressure

Intermediates680(8)

Monomers1371(13)

Petrochemicals1322(20)

euro3373(15)

EBIT before special items million euro

548633

249

465 467

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 4 (17) 0 (2)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

Diagramm1

EBIT bSI

548

633

249

465

467

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

Q2
Q3
Q4
Q1
Q2

Sheet1

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		548		633		249		465		467

BASF Capital Market Story September 2016 41

150 years

Performance Chemicals958(10)

CareChemicals

1178(3)

euro3846(6)Nutrition

amp Health497(11)

Dispersionsamp Pigments

1213(3)

304 319

228

547503

0

200

400

600

Q2 Q3 Q4 Q1 Q2

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 2 (3) (3) (2)

EBIT before special items million euro

20162015

Sales Q2 2016 vs Q2 2015million euro

Performance ProductsSignificant increase in earnings driven by lower fixed costs improved margins and higher volumes

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

Diagramm1

EBIT bSI

304

319

228

547

503

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

Q2
Q3
Q4
Q1
Q2

Sheet1

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		304		319		228		547		503

BASF Capital Market Story September 2016 42

150 years

Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions

Catalysts1508 (11)

Coatings800(2)

euro4703(4)

Performance Materials1766(1)

458

371 389456

535

0

200

400

600

Q2 Q3 Q4 Q1 Q2

ConstructionChemicals

629+1

EBIT before special items million euro

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 5 (6) 0 (3)

20162015

Sales Q2 2016 vs Q2 2015million euro

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

Diagramm1

EBIT bSI

458

371

389

456

535

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

Q2
Q3
Q4
Q1
Q2

Sheet1

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

	Q2		Q3		Q4		Q1		Q2
EBIT bSI		458		371		389		456		535

BASF Capital Market Story September 2016 43

150 years

Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds

1678 1459

3576 3239

0

1000

2000

3000

4000

Q2 2015 Q2 2016 H1 2015 H1 2016

(9)

365 320

939 911

0

200

400

600

800

1000

Q2 2015 Q2 2016 H1 2015 H1 2016

(12)

Sales Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

EBIT before special items Q2 2016 vs Q2 2015H1 2016 vs H1 2015million euro

(13)

Sales development Volumes Prices Portfolio Currencies

Q2 2016 vs Q2 2015 (8) 1 0 (6)

(3)

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 44

150 years

Oil amp GasSignificantly lower sales and earnings

Natural Gas Trading

Exploration amp Production

Net income

Sales development Volumes PricesCurrencies Portfolio

Q2 2016 vs Q2 2015 2 (3) (82)

143

288

94250

1000

200

400

600

Q2 2015 Q2 2015 Q2 2016 Q2 2016

EBIT before special items net income million euro

Sales Q2 2016 vs Q2 2015million euro

431

2964

617

704

0

1000

2000

3000

4000

5000

Q2 Q220162015

Salesmillion euro

(83)

3668

704

Natural Gas Trading

Exploration amp Production

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 45

150 years

Review of ldquoOtherrdquo

million euro Q2 2016 Q2 2015

Sales 485 757

EBIT before special items (212) (63)

Thereof Corporate research costs (88) (102)

Costs of corporate headquarters (56) (64)

Foreign currency results hedging andother measurement effects (116) 151

Other businesses 33 30

Special items 65 (20)

EBIT (147) (83)

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 46

150 years

Cash flow in 1st half 2016

million euro H1 2016 H1 2015

Cash provided by operating activities 3339 5143Thereof changes in net working capital (1045) 877

miscellaneous items (122) (32)

Cash used in investing activities (1988) (3331)Thereof payments related to tangibleintangible assets (1979) (2845)

acquisitionsdivestitures 51 (15)

Cash used in financing activities (1814) (1033)

Thereof changes in financial liabilities 944 1723

dividends (2768) (2803)

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 47

150 years

Strong balance sheet

Total assets increased by euro13 billion on higher trade accounts receivable and deferred taxes

Inventories were stable at euro97 billion

Provisions for pension obligations increased by euro33 billion

Net debt at euro141 billion Equity ratio 40

241 273

152159

315290

Dec 312015

June 302016

22 1831 36

95 106

97 97

463 465

Dec 312015

June 302016

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assets

708 722 708 722

Otherliabilities

Financialdebt

Equity

Balance sheet June 30 2016 vs December 31 2015 billion euro

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 48

Business development

Path forward Our priorities

Appendix ndash Roundtable Asia Pacific

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 49

150 years

Key Messages

BASF is well positioned in Asia Pacific and is quickly adapting to the changing environment

ldquoWe create chemistry in Asia Pacificrdquo leveraging the growth opportunities in the market

Asia Pacific is the largest market for the production and consumption of chemicals

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 50

150 years

Source BASF Size of circles indicate GDP 2015 all data refer to 2010 prices and exchange rates in US$

0

5

10

0 20 40 60

GDP per capita (in thousand US$)

Singapore

Australia

China

JapanSouth Korea

India

GDP CAGR 2010ndash2015(in )

Emerging Markets

Developed Markets

Asia Pacific remains a diverse region

Indonesia

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 51

150 years

Macroeconomic trends in Asia remain unchanged

Demands of society and government

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 52

150 years

Source BASF

Real GDP (in trillion US$)

2012CAGR26

31

30

27

12

672

35

27

26

12

8232012 2020

World

CAGR44

27 39

11610

7 204

2144

135

11

6287

Asia Pacific

Asia Pacific

OthersEurope

North America

2020

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

GDP in Asia Pacific is expected to outgrow other regions

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 53

150 years

Asia and China continue to dominate global chemical production

2012 CAGR37

50

23

189

32

58

18

168

43

World

CAGR56

1265

6

9

7

19

73

5

66

1

25

Asia Pacific

Asia Pacific

OthersEurope

North America

2020 2020201216

Source BASF

Real chemical production (excl pharma)(in trillion US$)

Greater China

South KoreaJapan

South Asia

ANZ

South East Asia

Greater China Mainland China Taiwan Hong Kong Macau South Asia India Pakistan Bangladesh Sri LankaSouth East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia ANZ Australia New Zealand

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 54

150 years

BASF in Asia Pacific 2015

Only selected sites and offices are depicted in this chart Site and office numbers refer to companies of significant size where BASF holds a stake greater than 50

As of December 31 2015

Sales by location of customernot including BASF-YPC sales (euro22 billion)

Regional center

Verbund sites

Selected sites

RampDTechnical centers

Shared Services Center

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

BASF is active in 16 countries

Customers from 38 markets

Around 100 production sites

gt120 sales offices

17562 employees

~euro123 billion sales

~euro09 billion EBITDA before special items

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 55

150 years

1 Sinopec 414 External Sales minus Chemical Segment

2 Formosa Group 326 4 related companies FPC NPC FCFC FPCC

3 ChemChina 319 Turnover minus 4 related segments

4 Mitsubishi Chemicals 227 Net Sales minus excluding healthcare amp others adj for calendar year 2015

5 LG Chem 161 2015 sales revenue

6 Sumitomo Chemical 156 Net Sales ndash excluding pharma amp others adj for calendar year 2015

7 Toray 126 Net Sales minus excluding life science amp others adj for calendar year 2015

8 BASF 123 Sales by location of customers

9 Reliance Chemicals 114 External turnover ndash adj for calendar year 2015

10 Mitsui Chemicals 105 Net Sales ndash adj for calendar year 2015

2015 Chemical sales in Asia Pacific (in billion euro)

BASF is the only western chemical company amongst Asiarsquos top 10

Source Company annual reports BASF BASF would rank 7 with BASF-YPC sales included (euro22 billion in 2015)

Company

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 56

150 years

BASFrsquos performance in Asia Pacific

00

05

10

15

2012 2013 2014 2015 H1 2015 H1 2016

0

5

10

15

2012 2013 2014 2015 H1 2015 H1 2016

125 124 123 123

Sales(in billion euro)

Stable volumes despite challenging environment

Volume growth in China

Increased share of products produced in Asia

RampD platform set up

Cost discipline

Negative top-line impact due to portfolio pruning

Overcapacities and low oil price impact prices and margins

EBITDA before special items(in billion euro)

13 1210 09

57

07

64

05

By location of customer

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 57

150 years

BASF in Asia Pacific Balanced portfolio

Sales by sub-region in 2015(in billion euro)

Functional Materials amp Solutions35

Performance Products 29

Other6

Chemicals26

Agricultural Solutions4

euro123 billion

South East Asia18

Greater China46

AustraliaNew Zealand

3

South Asia11

Japan12

South Korea9

euro123 billion

Sales to third parties by location of customer

Others1

Sales by segment in 2015(in billion euro)

Greater China Mainland China Taiwan Hong Kong Macau South East Asia Singapore Philippines Vietnam Thailand Indonesia Malaysia South Asia India Pakistan Bangladesh Sri LankaOthers Kazakhstan Kyrgyzstan Mauritius Uzbekistan Tajikistan

Turkmenistan

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 58

150 years

Our strategy

InnovationAccelerate innovation by utilizing new RampD assets

MarketGrow sales faster than

Asian chemical production

PortfolioContinue to optimize

our portfolio

PeopleAttract develop and

retain talent

InvestmentSelectively expand our

local production network

ExcellenceDrive profitable growth

through excellence

We create chemistryin Asia Pacific

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 59

150 years

We participate in innovative and growing markets

Market

Estimated CAGR 2015ndash2020 for selected industries Asia Pacific

Construction

Electronics

57

Consumer Products

50

Transportation

33

41 66

Packaging

Sources BASF Smithers Pira (for packaging)

29

Agriculture

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 60

150 years

RampD close to our customersOur facilities across Asia Pacific

Innovation

RampD Center SouthKoreaFocus electronics

RampD Center AustraliaFocus mining

Innovation Campus Asia Pacific Phase II Shanghai Focus polymers amp materials process engineering formulations

Innovation Campus Asia Pacific Mumbai Focus crop protection

process engineering

RampD Center Japan Focus electronics

battery materials

20142012 2013 20172015

Advanced Materials amp Systems Research

moves HQ to Shanghai

gt900 RampD personnel in Asia Pacific

As of December 31 2015

Innovation Campus Asia Pacific Phase I Shanghai Focus polymers amp materials

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 61

150 years

Portfolio development Asia Pacific

~euro05 billion sales in Asia Pacific

Acquisitions

Omega-3 fatty acids Functional crop care Battery materials Mining solutions TPU adhesives Cathode active materials Surface treatment

technology Refinish coatings

BASFCore Business

Strong Partnerships

Heesung Hua Yi Huntsman Kolon Plastics Petronas Sinopec Sumitomo Metal Mining

Selected transactions 2012 minus today

Divestitures

~euro09 billion salesin Asia Pacific

Textile chemicals Styrenics incl shares in

ELLBA Construction equipment

wall and flooring Admixtures (exit from

selected markets) Paper hydrous kaolin

business Custom synthesis business

and parts of API portfolio

Selected transactions with relevance to Asia Pacific

61 Full-year sales effect included Closing expected in 2016

Portfolio

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 62

150 years

Balanced asset base in Asia Pacific Investments for profitable growth

Investments 2012ndash2015 euro30 billion (13 of BASF Group)

Increasing focus on investments where BASF

minus is technologically leading minus has a competitive

advantage minus expects strong profitable

market growth

Target remains ~75 own manufactured products by 2020 (today ~55)

Care chemicals Polyurethane specialties

Specialty plasticsEngineering plasticsPolymer dispersions

AminesSurfactants

Acrylic acid amp SAPResins

Specialty plasticsCrop protection products

MDI (Chongqing)Innovation Campus (Shanghai)

PolyamidesNeopentylglycol

IsononanolCoatings resins

Automotive coatingsButanediolPolyTHFreg

Specialty amines Ethylene oxide

Startup 2012ndashH1 2016

Startup planned for H2 2016ndash2018

China

Asia Pacific

Process catalystsEmollients and waxesMDI (Caojing)PolyvinylpyrrolidoneAutomotive coatings

Aroma chemicals2-Ethylhexanoic acidAutomotive catalystsConstruction chemicalsHighly reactive polyisobuteneInnovation Campus (Mumbai)Automotive coatingsSpecialty plastics

Without China Investments in property plant and equipment (excluding acquisitions)

Investment

Selected major capex projects

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 63

150 years

Best Team Excellent people workplace and leaders

Source Personnel amp Social Reporting (PSR) HR Business Solutions Mercer market data Industry Benchmark 2012-14

People

Learning Campus Singapore

BASF is an attractive employer in Asia Pacific

Attrition rate is significantly lower than peer average of 7 in the region

Cooperation with leading universities to access talents and training

Strong experience profile and tenure of senior executives

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 64

150 years

Functional excellence

Strong focus on efficiency and effectiveness

Expansion of Shared Services Center Kuala Lumpur Malaysia

Improved efficiency in functional units

Structural excellence

Optimization of office space

Consolidation of sites and legal entities

Operational excellence

Debottlenecking and technical improvement

Increased raw material and energy efficiency

Excellence measures to enhance competitiveness and profitability

Asia Pacific is a significant contributor to the global DrivE program

Excellence

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 65

150 years

0

2500

5000

Acrylic acid Butanediol Caprolactam MDI TDI

Overcapacities in selected commodities will persist for some years(2016 industry capacities in thousand metric tons operating rates in )

~60

~65 ~70 ~70

~60

Est capacity Est operating rate

Cas

h co

sts

BAS

F cl

assi

c pr

oces

s

BAS

F ne

w p

roce

ss

Production capacity

Acrylic acid cash cost curve China average cash costs 2016

Source BASF estimates BASF does not produce caprolactam in Asia Pacific

BAS

F Pl

ant 3

BAS

F Pl

ant 2

Cas

h co

sts

Production capacity

BAS

F Pl

ant 1

14-Butanediol (BDO) cash cost curve Asia average cash costs 2016

Excellence

BASF benefits from attractive cost position in Asia in the Chemicals segment

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 66

150 years

Selected investments between 2015 and2017 catering to growth markets

Adhesives for plastic components Taiwan

Focus on investments where BASF is technologically leading has a competitive advantage and expects strong profitable market growth

Greater China

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 67

150 years

Strong performance Light-vehicle production

increased by 30 from 2012 to 2015 (CAGR 9)

BASF sales to the automotive industry increased by 80 in the same period (CAGR 21)

China is a significant contributor to BASF Group sales to the automotive industry

Market dynamics China is the largest electric

vehicle market supported by policy incentives

Increasingly stringent standards for vehicle emissions fuel quality and VOC emissions

Index 2012 = 100

BASF sales Light-vehicle production

BASF growing strongly with automotive industry in Greater China

Greater China

100

120

140

160

180

200

2012 2013 2014 2015

Excluding precious metals and refinish

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 68

150 years

Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)

Emissions catalysts system

Partner Geely

BASF solution Advanced EMPROtrade emission catalyst

Key contributions Reduced use of precious metals meets new regulations

Rear bumper baffle

Partner Great Wall Motor

BASF solution Ultramidreg

Key contributions High heat resistance weatherability lightweight

Low-VOC steering wheel foam

Partner ChangAn

BASF solution Elastofoamreg

Key contributions Low VOC low odor outstanding physical properties including sun resistance

Greater China

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69

BASF Capital Market Story September 2016 69

150 years

• Foliennummer 1
• Cautionary note regarding forward-looking statements
• BASF ndash Share information
• We create chemistry for a sustainable future
• BASF today ndash a well-balanced portfolioTotal sales 2015 euro704 billion
• Verbund Unique competitive advantage
• Q2 2016 Financial figures for BASF Group
• Free cash flow development
• Foliennummer 9
• Foliennummer 10
• Components of growth
• Portfolio development towards more market-driven and innovative businesses
• Steady earnings growth
• Strong track record in operational excellence
• Foliennummer 15
• Foliennummer 16
• Foliennummer 17
• The path forward Our priorities
• Managing volatility BASF almost perfectly hedged on hydrocarbon price changes
• Chemicals with stable profitability little correlation to oil price
• Strategic lever Continuous portfolio development
• Strategic lever Acquisitions
• BASF to acquire Chemetall Transaction highlights
• Chemetall ndash a global leader in surface treatment products and services
• Chemetall complements BASFrsquos portfolio adding highly attractive surface treatment
• Chemetall ndash an excellent strategic fit for BASF Coatings
• Strategic leverCapital expenditures
• Investments for organic growth
• Strategic lever Innovations
• Foliennummer 30
• Foliennummer 31
• Automotive is a growth business for BASF
• Innovation Green Sensereg Concrete for sustainable construction
• Innovation Trilonreg MChelating agent for more sustainable detergents and cleaners
• Innovation Engagement in digital agronomic decision support
• Strategic lever Sustainability Sustainable Solution Steering
• Strategic lever Operational excellenceDrivE with ~euro1 billion earnings contribution
• Profitability of BASF will grow faster than global chemical production
• Foliennummer 39
• ChemicalsHigher volumes but continuing margin pressure
• Foliennummer 41
• Functional Materials amp SolutionsConsiderable earnings increase supported by all divisions
• Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
• Foliennummer 44
• Review of ldquoOtherrdquo
• Cash flow in 1st half 2016
• Strong balance sheet
• Foliennummer 48
• Key Messages
• Asia Pacific remains a diverse region
• Macroeconomic trends in Asia remain unchanged
• GDP in Asia Pacific is expected to outgrow other regions
• Asia and China continue to dominate global chemical production
• BASF in Asia Pacific 2015
• BASF is the only western chemical company amongst Asiarsquos top 10
• BASFrsquos performance in Asia Pacific
• BASF in Asia Pacific Balanced portfolio
• Our strategy
• We participate in innovative and growing markets
• RampD close to our customersOur facilities across Asia Pacific
• Portfolio development Asia Pacific
• Balanced asset base in Asia Pacific Investments for profitable growth
• Best Team Excellent people workplace and leaders
• Excellence measures to enhance competitiveness and profitability
• BASF benefits from attractive cost position in Asia in the Chemicals segment
• Selected investments between 2015 and 2017 catering to growth markets
• BASF growing strongly with automotive industry in Greater China
• Innovation projects with Chinarsquos rising star original equipment manufacturers (OEM)
• Foliennummer 69