We create chemistry for a sustainable future

Kurt Bock

Chairman of the

Board of Executive

Directors

Meeting with

Capital World

Investors

February 27, 2017

BASF Capital Market Story, February 2017 2

Cautionary note regarding

forward-looking statements

This presentation contains forward-looking statements. These statements are based on current

estimates and projections of BASF management and currently available information. Future

statements are not guarantees of the future developments and results outlined therein. These are

dependent on a number of factors; they involve various risks and uncertainties; and they are based

on assumptions that may not prove to be accurate. Such factors include those discussed in the

Opportunities and Risks Report from pages 111 to 118 of the BASF Report 2016. We do not assume

any obligation to update the forward-looking statements contained in this presentation.

BASF Capital Market Story, February 2017 3

Growth above chemical industry average – driven by innovative and sustainable products

and solutions

Unique Verbund concept – competitive advantage based on integrated sites, operational

excellence and best-in-class technologies

Broad and resilient portfolio – with global market access and strong customer relationships

Earnings growth and strong cash flow generation – based on operational and financial

strength

Long-term value creation with progressive dividend policy – grow or at least maintain

dividend at the previous year’s level

BASF shares – an attractive investment

BASF Capital Market Story, February 2017 4

Chemicals – a growth industryGlobal annual growth rate of ~3.6%*

…more food needed

by 2050

…more primary energy

consumption by 2050

…of the world population

will live in cities by 2050

Agriculture Health & Nutrition

Energy & Resources

Automotive &Transport

Construction &Housing

Consumer products

…people by 2050

Electric & Electronics

Chemistry as enabler to meet current and future needs

70% 50%~10 bn 30%

* Forecast average annual real change 2017-2019; BASF Report 2016, p.121

BASF Capital Market Story, February 2017 5

Broad and resilient portfolio2016: Sales of €57.6 billion; EBITDA of €10.5 billion

Percentage of sales 2016*

* Not depicted here: ‘Other’ 3% of Group sales and EBITDA €(1.0) billion

BASF Capital Market Story, February 2017 6

Verbund – unique competitive advantageActively managed in line with market requirements

Annual cost savings of more than €1 billion through integrated production

Verbund concept supports sustainability, reduces waste and avoids CO2 emissions of 6 million tons p.a.

Energy savings

>€300 million p.a.

People, Customers, Technology, Production

BASF Capital Market Story, February 2017 7

Stepwise increase of earnings level

EBIT and EBITDA*

billion €, 2001 - 2016

3.7

4.7 4.6

7.0 7.2

8.48.9

7.7

6.5

9.9

11.2

10.010.4

11.010.6 10.5

0

2

4

6

8

10

12

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

EBIT EBITDA

0.7

2.2 2.2

4.5 4.85.5

6.0

4.6

2.8

6.7

8.0

6.7 7.27.6

6.2 6.3

CAGREBITDA

7%CAGREBIT

16%

* 2010, 2011 indicative, adjusted for IFRS 10 & 11; 2001 – 2009 as reported, without non-compensable foreign income taxes on oil production

Avg. EBITDA level in depicted years

BASF Capital Market Story, February 2017 8

billion €, 2001 - 2016

2.3 2.3

4.94.6

5.3

5.9 5.8

5.0

5.7

6.5

7.16.6

8.1

7.0

9.4

7.7

0

1

2

3

4

5

6

7

8

9

10

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

Free cash flowOperating cash flow

-0.5 -0.1

2.8 2.6

3.3 3.53.2

2.53.2

3.9 3.7

2.6

3.2

1.7

3.6 3.6

6.3%

Strong cash flow development

BASF Capital Market Story, February 2017 9

Attractive dividendWe want to grow or at least maintain dividend at the previous year’s level

* Dividend yield based on share price at year-end

Dividend per share

€

0.65 0.70 0.700.85

1.00

1.50

1.95 1.95

1.70

2.20

2.502.60

2.702.80

2.903.00

0

1

2

3

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

Yield* 3.1% 3.9% 3.1% 3.2% 3.1% 4.1% 3.8% 7.0% 3.9% 3.7% 4.6% 3.7% 3.5% 4.0% 4.1% 3.4%

Proposal:

BASF Capital Market Story, February 2017 10

Sales growth – slightly faster than global chemical production

Deliver attractive returns – earn a significant premium on cost of capital

EBITDA growth – well above global chemical production

Remain a strong cash provider – continuously generate high levels of free cash flow

Progressive dividend policy – grow or at least maintain dividend at previous year’s level

Financial targets for the coming years

BASF Capital Market Story, February 2017 11

Innovations for a sustainable future

Investments in organic growth

M&A opportunities and portfolio pruning measures

Our priorities

Cost discipline and operational excellence

We aim to grow sales and earnings faster than global chemical production

in the coming years, driven by

BASF Capital Market Story, February 2017 12

Outlook 2017 for BASF Group

We want to slightly raise EBIT before special items compared with 2016

We expect BASF Group sales to grow considerably in the 2017 business year

BASF Group EBIT is also expected to grow slightly in 2017

We are likely to once again earn a significant premium on our cost of capital in 2017

BASF Capital Market Story, February 2017 13BASF Investor Day 2015 – Keynote speech 13