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BASF Capital Market Story, June 2016 1We add value as one company
Ingo RoseDirectorInvestor Relations
Roadshow California
June 7-8, 2016
BASF Capital Market Story, June 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, prospects,competitive environment, regulation and supply and demand. BASF has based these forward-looking statements on its views and assumptions with respect to future events and 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, June 2016 3
150 years
BASF Share information
Symbol: BAS
Trading Platform: Deutsche Brse
ISIN: DE000BASF111
IPO: January 30, 1952
Type of shares: Registered shares
Trading lot: none, one share is tradable
Free float (according to Deutsche Brse):100 %
Number of subscribed shares outstanding (as of 12/31/2015):918,478,694
Symbol: BASFY
OTC Trading Platform: OTCQX
CUSIP: 055262505
Ratio: 1 ADR : 1 Ordinary Share
Depositary bank: Deutsche Bank Trust Company Americas Tel: +1 212 250 9100 (New York broker desk) Tel: +44 207 547 6500 (London broker desk) E-mail: [email protected] Website: www.adr.db.com
Depositary banks local custodian: Deutsche Bank AG, Frankfurt
Ordinary Share information ADR information
BASF Capital Market Story, June 2016 4
150 years
Chemistry as an enabler BASF has superior growth
opportunities: sustainable innovations investments emerging markets
The #1 chemical company 70.4 billion sales, 6.7
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
>3.5% dividend yield in every single year from 2006-2015
~66 billion market capitalization on April 29, 2016
PerspectiveLudwigshafen,Germany
Antwerp,Belgium
Nanjing,China
Kuantan,MalaysiaGeismar,
LouisianaFreeport,Texas
Verbund site
Positioning
We create chemistry for a sustainable future
Performance
20
30
40
50
60
70
80
90
2008 2009 2010 2011 2012 20142013 2015
BASF Capital Market Story, June 2016 5
150 years
Percentage of sales 2015*
* Not depicted here: ~4% of Group sales reported as Other ** Natural Gas Trading has been divested on Sep. 30, 2015.
BASF today a well-balanced portfolioTotal sales 2015: 70.4 billion
BASF Capital Market Story, June 2016 6
150 years
Global reduction in carbon emissions of 6 million metric tons p.a. and reduction of waste
Example Ludwigshafen site:avoidance of 7 million metric tons of freight p.a.= 280,000 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 >1 billion p.a. global cost savings* & supports sustainability
BASF Capital Market Story, June 2016 7
150 years
0
1
2
3
4
5
2006 2007 2008 2009** 2010 2011 2012 2013 2014 2015
Strong free cash flow
* Cash provided by operating activities less capex ** 2009 adjusted for re-classification of settlement payments for currency derivatives
Free cash flow*(in billion )
3.53.2
2.5
3.2
3.9 3.7
2.6
3.2
1.7
3.6
Diagramm1
3.529
3.245
2.502
3.186
3.912
3.695
2.587
3.21
1.7
3.6
Free Cash Flow
Sheet1
2006200720082009**201020112012201320142015
Free Cash Flow3.5293.2452.5023.1863.9123.6952.5873.2101.73.6
BASF Capital Market Story, June 2016 8
150 years
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2006 2009 2012 2015
2.90
We want to grow or at least maintain our dividend at the previous years level
Dividend of 2.90 per share, an increase of 3.6%
Dividend yield of 4.1% in 2015
Dividend yield above 3.5%in any given year since 2006
4.6%
Attractive shareholder return
Key facts 2015
Dividend per share ()
0.50
1.00
1.50
2.00
* Dividend yield based on share price at year-end
4.1% 3.8% 7.0% 3.9% 3.7%Yield* 3.7%
2.50
3.5%
3.00
4.0% 4.1%
1.50
1.95 1.951.70
2.202.50 2.60 2.70
Dividend policy
2.80
BASF Capital Market Story, June 2016 9
150 years
Average annual performance with dividends reinvested
0 3 6 9 12 15
Euro Stoxx 50
DAX 30
MSCI World Chemicals
+6.1%
Last 5 yearsJune 2011 May 2016
+5.9%
+4.5%
+7.1%
+6.5%
Last 10 yearsJune 2006 May 2016
BASF
+7.2%
+1.4%
+12.7%
Delivering consistent, long-term value
Diagramm1
7.2
6.1
1.6
12.7
Ost
9.1%
12.0%
8.1%
Sheet1
MSCI WorldDAXEuro StoxxBASF
Ost7.26.101.612.7
BASF Capital Market Story, June 2016 10
Q1 2016 reporting
Business development
Path forward: Our priorities
BASF Capital Market Story, June 2016 11
150 years
Sales development Volumes Prices Portfolio Currencies
Q1 2016 vs. Q1 2015 0% (6%) (22%) (1%)
Q1 2016: BASF with slightly lower earnings compared to strong prior-year quarter
Financial figures Q1 2016 Q1 2015 Change
Sales 14.2 billion 20.1 billion (29%)
EBITDA 2.8 billion 2.9 billion (3%)
EBIT before special items 1.9 billion 2.1 billion (8%)
EBIT 1.9 billion 2.0 billion (6%)
Net income 1.4 billion 1.2 billion +18%
Reported EPS 1.51 1.28 +18%
Adjusted EPS 1.64 1.43 +15%
Operating cash flow 1.0 billion 2.4 billion (56%)
BASF Capital Market Story, June 2016 12
150 years
Milestones in Q1 2016
Start-up of butanediol plant at the integrated PolyTHF complex in Korla, China
JV with Avantium intended for production of furandicarboxylicacid (FDCA) in Belgium
Update of peak sales potential for product launches in Agricultural Solutions
Joint operation of polyoxymethylene (POM)with Kolon Plastics planned in Korea
BASF Capital Market Story, June 2016 13
150 years
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. Excluding the effects of acquisitions and divestitures, we expect higher volumes in all segments. We expect EBIT before special items to be slightly below the previous year driven by
drastically lower earnings of Oil & Gas. We plan higher earnings in our chemicals business and in the Agricultural Solutions segment. EBIT after cost of capital is expected to be significantly below prior year. However, we still
expect to earn a premium on our cost of capital.
Assumptions 2016 GDP growth: +2.3% Growth in industrial production: +2.0% Growth in chemical production (excl. pharma): +3.4% Exchange rate: $1.10 per euro Oil price (Brent): $40 per barrel
Outlook 2016 confirmed
BASF Capital Market Story, June 2016 14
150 years
EBIT before special items
Million 2015 Forecast 2016
Chemicals 2,156 considerable decreasePerformance Products 1,366 slight increaseFunctional Materials & Solutions 1,649 slight increaseAgricultural Solutions 1,090 slight increaseOil & Gas 1,366 considerable decreaseOther (888) considerable increase
BASF Group 6,739 slight decrease
Outlook 2016 Forecast by segment
With respect to EBIT before special items, slight means a change of 1-10%, while considerable is used for changes greater than 11%. At prior-year level indicates no change (+/-0%).
BASF Capital Market Story, June 2016 15
150 years
Priorities 2016
Focus on capex discipline:
Reduce capital expenditures to 4.2 billion in 2016 Cost control and operational excellence:
DrivE targeting ~1 billion annual earnings contributionfrom end of 2018 on
Portfolio optimization ongoing:
E.g. agreement to sell industrial coatings business to AkzoNobel Strong commitment to innovation:
Maintain R&D spending at ~1.95 billion in 2016
BASF Capital Market Story, June 2016 16
Q1 2016 reporting
Business development
Path forward: Our priorities
BASF Capital Market Story, June 2016 17
150 years
Components of growth
* 2010, 2011 indicative, adjusted for IFRS 10 & 11
59.6
70.4+10.5 -1.4
+2.6 -0.9
20
40
60
80
2010 2015
Volumes
PricesFX M&A
Sales* analysis 2010 2015 (in billion )
(in billion ) Net sales 2010 Volumes Prices FX M&A Sales CAGR 2010 - 2015
BASF Group w/o Oil & Gas 51.4
+2.8 (+1.1% CAGR) -0.9 +2.6 +1.6 +2.3%
Oil & Gas 8.2 +7.7 (+14.2% CAGR) -0.5 +0.0 -2.5 +9.6%
3.4%
CAGR
BASF Capital Market Story, June 2016 18
150 years
Steady earnings growth
* 2010, 2011 indicative, adjusted for IFRS 10 & 11; 2001 2009 as reported, without non-compensable foreign income taxes on oil production
EBIT and EBITDA*(in billion , 2001 - 2015)
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
0
2
4
6
8
10
12
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015EBITEBITDA
0.7
2.2 2.2
4.5 4.85.5 6.0
4.6
2.8
6.7
8.06.7 7.2
7.6
6.2
CAGREBITDA
7.9 %CAGREBIT
16.6 %
BASF Capital Market Story, June 2016 19
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 10/11 restatements, i.e. BASF YPC Nanjing, Libya onshore, other Oil & Gas and Catalysts companies
BASF Group* 20012015(Index; CAGR 20012015)
Fixed Costs
CAGREBITDA
9%
CAGRSales
6%
CAGRFixed Costs3%
BASF Capital Market Story, June 2016 20
Q1 2016 reporting
Business development
Path forward: Our priorities
BASF Capital Market Story, June 2016 21
150 years
Grow sales and earnings faster than global chemical production, driven by
Continued focus on innovations
Capital expenditures
Acquisitions
Operational excellence and Verbund advantages
Focus on cash generation / conversion
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, June 2016 22
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
>100
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, June 2016 23
150 years
0
100
200
300
400
500
2001 2002 2003 2004 2005 2006* 2007* 2008 2009 2010 2011 2012restated
2013 2014 2015
EBITDA margin Chemicals / oil priceIndex 2001 = 100
Chemicals with stable profitability, little correlation to oil price
EBITDA margin Chemicals(as % of sales)
Oil price
* Without Catalysts (now part of Functional Materials & Solutions segment)
BASF Capital Market Story, June 2016 24
150 years
Functional crop care Personal care & food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in
Oil & Gas
BASFcore business
Strong partnerships
Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara
Selected transactions 2010 until today
Acquisitions
~ 4.5 billion salesin emerging and innovation-driven
businesses
Divestitures
Styrenics Fertilizers Selected assets in Oil & Gas Natural gas trading & storage Custom synthesis business Industrial coatings Textile chemicals PP/PE catalysts
~ 20 billion sales*in businesses with
limited fit and differentiation
potential
Portfolio development towards more market-driven and innovative businesses
* Includes sales of non-consolidated businesses (Styrenics, VNG participation)
BASF Capital Market Story, June 2016 25
150 years
Strategic lever: Continuous portfolio development
Specialties and solutions
Differentiated commodities
target(in % of sales*)
~ 50% ~ 50%
Keep a balanced portfolio
Divestment of businessese.g. due to loss of differentiation
Divestment of businesses e.g. due to
lower market attractiveness
Commoditization leads to restructuring
Growth fields
Innovation pipeline
Acquisitions
* Excluding Oil & Gas sales
Attractive markets Differentiation by process
technologies and integration
Attractive markets Differentiation by customer
proximity and innovations
BASF Capital Market Story, June 2016 26
150 years
Provide a minimum return on investment of 8% p.a. after tax
Are EPS accretive by year three at the latest
Financial acquisition criteria
Generate profitable growth above the industry average
Are innovation-driven
Offer a special value proposition to customers
Reduce earnings cyclicality
Strategic acquisition criteria
We want to acquire businesses which
Strategic lever: Acquisitions
BASF Capital Market Story, June 2016 27
150 years
Strategic lever:Capital expenditures
Differentiated commodities With proprietary technology and/or Verbund advantages
Focus on: emerging markets backward integration in the U.S. upgrading our asset base in Europe
Specialties and solutions Incremental investments for new products Regional expansion of businesses
Oil & 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, June 2016 28
150 years
Investments for organic growth
Performance Products16%
Oil & Gas24%
19.5billion
FunctionalMaterials &Solutions12%
Capex budget 2016-2020
Other14%
Chemicals30%
Capex budget 2016-2020
Asia Pacific18%
19.5billion
South America*9%
North America26%
Europe46%
AgriculturalSolutions4%
Other1%
by segment by region
* Including Africa and Middle East
BASF Capital Market Story, June 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 R&D Verbund
Leverage external collaborations even more
Align R&D activities with business models:
Differentiated commodities Focus on improving processes and addressing raw material change Launch selected product innovations
Specialties and solutions Develop new, tailored offerings in close collaboration with customers Pursue solution-oriented approach
Keep annual R&D spending at ~3% of sales*
* Without Oil & Gas
BASF Capital Market Story, June 2016 30
150 years
1.95 billion R&D expendituresin 2015; to be maintained in 2016
~10,000 employees in R&D
~3,000 projects
Ranked No.1 in thePatent Asset Index
~1,000 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
1.61.7
1.8 1.9 1.95
0.0
0.5
1.0
1.5
2.0
2011 2012 2013 2014 2015
R&D expenditures (billion )
Chemicals11%
Performance Products20%
Functional Mat. & Sol.20%
Agricultural Solutions26%
Oil & Gas2%
Corporate Research21%
2.0
1.5
1.0
0.5
0
BASF Capital Market Story, June 2016 31
150 years
Innovation: Green SenseConcrete for sustainable construction
Envi
ronm
enta
l Im
pact
High
ReferenceConcrete
High Low
Low
Total Cost of Ownership
BASFs Green Sense 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, e.g. One World Trade Center, NYC
BASF Capital Market Story, June 2016 32
150 years
Innovation: Trilon MChelating agent for more sustainable detergents and cleaners
Trilon M 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 120,000 tons 2015: Start-up of a new Trilon M world-scale plant in
Theodore, Alabama
Compared with alternative chelating agents Trilon M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance
BASF Capital Market Story, June 2016 33
150 years
Innovation: SAVIVA Highly efficient Superabsorbent Polymers (SAP)
SAVIVA based on a pioneering SAP technology platform SAVIVA the next generation of SAP Round-shaped particles with micro-pores initiates
innovative liquid distribution mechanism
Compared to other SAPs SAVIVA leads to: Efficiency gains:
SAP reduction Fluff reduction Reduction of storage, packaging and transportation
costs
Improved sustainability: Better carbon footprint due to SAP and weight
reduction Enabler for future diaper designs offering a new
level of comfort and dryness
SAVIVA round shaped particle
BASF Capital Market Story, June 2016 34
150 years
Lower production cost than industry average
Efficiency gains:
run-time extension higher throughput lower energy consumption
Proprietary technology,new process protected by280 active patent families
4 out of 6 production sites already equipped: Ludwigs-hafen, Antwerp, Nanjing and Camaari (Brazil)
Innovation: New acrylic acid technologyBASF with best-in-class acrylic acid process
80
85
90
95
100
BASFnew process
BASFclassic process
Industry average
Acrylic acid production technology benchmark(Industry average costs = 100; normalized)
Key facts
Source: BASF estimate
BASF Capital Market Story, June 2016 35
150 years
InnovationAutomotive 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
6.7%
Global vehicleproduction
CAGR shown for 2007 2015
CAGR
2.8%
BASF Capital Market Story, June 2016 36
150 years
0
50
100
150
BASF Competitors
FWCCombines 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 & combusts particulates
Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards
FWC introduced in 2013 Sustains BASFs leading technology position
Leading position: Global mobile emissions catalysts patents*
* 2009 2013 ** Hydrocarbons, carbon monoxide, nitrogen oxides *** https://www.basf.com/en/company/news-and-media/science-around-us/catalytic-converter.html
FWC reduces emission of gaseous pollutants and particulates
HC
CO
NOx
N2
H2O
CO2
Particulates
Innovation: Four-Way Conversion Catalyst (FWC)
BASF Capital Market Story, June 2016 37
150 years
2.2% 0.2%
Novel methodology to screen and steer our portfolio*
26.6% Accelerators: outgrow their markets
by 2-10% deliver margins >10%
above the average represent >60% of BASFs
R&D pipeline 71% Performers
BASF Capital Market Story, June 2016 38
150 years
0
1,000
2,000
3,000
4,000
2015 2018
Annual earnings contribution(in million )
Targeted annual earnings contribution of 1 billion from end of 2018 on
Optimization of processes and structures in all regions, e.g. manufacturing incremental capacities productivity increase
Project timeline: 20162018
DrivE program
Strategic lever: Operational excellenceDrivE with ~1 bn earnings contribution
NEXT 2008-2011 DrivE 2016-2018
STEP 2012-2015
Diagramm1
2015100013002015
2018100013001000
Sheet1!#REF!
NEXT
STEP
NewPro
Sheet1
201420152018
NEXT100010001000
STEP100013001300
NewPro1000
BASF Capital Market Story, June 2016 39
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 next 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, June 2016 40
Appendix I Q1 2016 reporting
BASF Capital Market Story, June 2016 41
150 years
Sales development Volumes Prices Portfolio Currencies
Q1 2016 vs. Q1 2015 (3%) (16%) 0% 0%
Intermediates646(12%)
Monomers1,307(18%)
Petrochemicals1,196(22%)
3,149(19%)
EBIT before special items million
726
548633
249
465
0
200
400
600
800
Q1 Q2 Q3 Q4 Q1
20162015
Sales Q1 2016 vs. Q1 2015million
ChemicalsLower margins and higher fixed costs result in considerably decreased earnings
Diagramm1
726
548
633
249
465
EBIT bSI
Sheet1
Q1Q2Q3Q4Q1
EBIT bSI726548633249465
BASF Capital Market Story, June 2016 42
150 years
Sales development Volumes Prices Portfolio Currencies
Q1 2016 vs. Q1 2015 1% (4%) (2%) (1%)
Performance Chemicals955(10%)
Performance ProductsIncrease in earnings by 6%, supported by successful restructuring
CareChemicals
1,204(7%)
3,783(6%)Nutrition
& Health488(5%)
Dispersions& Pigments
1,136(2%)
515
304 319228
547
0
200
400
600
Q1 Q2 Q3 Q4 Q1
Sales Q1 2016 vs. Q1 2015million
EBIT before special items million
20162015
Diagramm1
515
304
319
228
547
EBIT bSI
Sheet1
Q1Q2Q3Q4Q1
EBIT bSI515304319228547
BASF Capital Market Story, June 2016 43
150 years
Catalysts1,467(8%)
Coatings738(6%)
4,408(4%)
Performance Materials1,670(2%)
431 458371 389
456
0
200
400
600
Q1 Q2 Q3 Q4 Q1
Sales development Volumes Prices Portfolio Currencies
Q1 2016 vs. Q1 2015 5% (7%) 0% (2%)
EBIT before special items million
20162015
ConstructionChemicals
533+6%
Functional Materials & SolutionsGood demand from the automotive and construction industries
Sales Q1 2016 vs. Q1 2015million
Diagramm1
431
458
371
389
456
EBIT bSI
Sheet1
Q1Q2Q3Q4Q1
EBIT bSI431458371389456
BASF Capital Market Story, June 2016 44
150 years
1,898 1,780
0
1,000
2,000
Q1 Q1
Sales development Volumes Prices Portfolio Currencies
Q1 2016 vs. Q1 2015 (5%) 2% 0% (3%)
2016201520162015
(6%)574 591
0
200
400
600
Q1 Q1
+3%
Agricultural SolutionsSlight earnings increase in a challenging market environment
Salesmillion
EBIT before special itemsmillion
BASF Capital Market Story, June 2016 45
150 years
Sales development Volumes Prices/Currencies Portfolio
Q1 2016 vs. Q1 2015 2% (4%) (86%)
Oil & GasSignificantly lower sales and earnings
4,249
744
6110
1,000
2,000
3,000
4,000
5,000
Q1 Q120162015
* Including transportation business
161359
47
276
66
-100
100
300
500
EBIT bSI Net income EBIT bSI Net income
Natural Gas TradingExploration & Production
437
276
EBIT before special items, net incomemillion
Salesmillion
*
20162015Q1 Q1
(88%)
Natural Gas TradingExploration & Production
4,993
*
* Including transportation business
Diagramm1
161276EBIT bSI
359Net incomeNet income
066EBIT bSI
47Net incomeNet income
Natural Gas Trading
Exploration & Production
47
Sheet1
EBIT bSINet incomeEBIT bSINet income
Natural Gas Trading161359047
Exploration & Production27666
BASF Capital Market Story, June 2016 46
150 years
Review of Other
million Q1 2016 Q1 2015
Sales 477 688
EBIT before special items (219) (613)
Thereof Corporate research costs (99) (101)
Costs of corporate headquarters (55) (55)
Foreign currency results, hedging andother measurement effects 68 (382)
Other businesses 18 35
Special items (26) (82)
EBIT (245) (695)
BASF Capital Market Story, June 2016 47
150 years
Cash flow Q1 2016
million Q1 2016 Q1 2015
Cash provided by operating activities 1,046 2,390Thereof changes in net working capital (1,248) 309
miscellaneous items (39) 5Cash used in investing activities (1,258) (1,502)Thereof payments related to tangible / intangible assets (1,001) (1,278)
acquisitions / divestitures 0 26
Cash used in / provided by financing activities 1,997 (400)
Thereof changes in financial liabilities 1,996 (299)dividends (4) (101)
BASF Capital Market Story, June 2016 48
150 years
Dec 312015
Mar 312016
3.1 3.8
Balance sheet remains strongBalance sheet March 31, 2016 vs. December 31, 2015 billion
Liquid funds
Accountsreceivable
Long-termassets
9.5
Otherliabilities
Financialdebt
Stockholdersequity
Inventories
Other assets
9.7
2.2
10.7
9.6
4.0
27.8
20.9
1.3
28.4
22.4
2.0
15.114.4
46.3
70.873.7
45.6
Dec 312015
Mar 312016
70.8 73.7
24.1
15.2
31.5
26.0
16.8
30.9
Total assets increased by2.9 billion, mainly due to higher cash position and seasonally-driven increase in accounts receivable
Long-term assets slightly lower caused by currency effects
Provisions for pension obligations increased by2.0 billion as a result oflower interest rates
Net debt slightly declined to 12.8 billion
Equity ratio: 42%
BASF Capital Market Story, June 2016 49
150 years
Slide Number 1Cautionary note regarding forward-looking statements BASF Share informationWe create chemistry for a sustainable futureBASF today a well-balanced portfolioTotal sales 2015: 70.4 billionVerbund: Unique competitive advantageStrong free cash flowSlide Number 8Slide Number 9Slide Number 10Q1 2016: BASF with slightly lower earnings compared to strong prior-year quarterSlide Number 12Slide Number 13Slide Number 14Priorities 2016Slide Number 16Components of growthSteady earnings growthStrong track record in operational excellence Slide Number 20The path forward: Our prioritiesManaging volatility: BASF almost perfectly hedged on hydrocarbon price changesChemicals with stable profitability, little correlation to oil pricePortfolio development towards more market-driven and innovative businessesStrategic lever: Continuous portfolio development Strategic lever: Acquisitions Strategic lever:Capital expendituresInvestments for organic growthStrategic lever: Innovations Slide Number 30Innovation: Green Sense Concrete for sustainable constructionInnovation: Trilon MChelating agent for more sustainable detergents and cleanersInnovation: SAVIVA Highly efficient Superabsorbent Polymers (SAP) Slide Number 34Innovation Automotive is a growth business for BASF Slide Number 36Strategic lever: Sustainability Sustainable Solution SteeringStrategic lever: Operational excellenceDrivE with ~1 bn earnings contributionProfitability of BASF will grow faster than global chemical productionSlide Number 40ChemicalsLower margins and higher fixed costs result in considerably decreased earnings Performance ProductsIncrease in earnings by 6%, supported by successful restructuringFunctional Materials & SolutionsGood demand from the automotive and construction industriesAgricultural SolutionsSlight earnings increase in a challenging market environmentSlide Number 45Review of Other Cash flow Q1 2016Balance sheet remains strongSlide Number 49