We create chemistry for a sustainable future - BASF€¦ · Hong Kong, August 30, 2018. 2 August 2018 | BASF Capital Market Story Cautionary note regarding forward-looking statements

We create chemistry for a sustainable futureSanjeev Gandhi Member of the Board of Executive DirectorsHong Kong, August 30, 2018

August 20182 | BASF Capital Market Story

Cautionary note regarding forward-looking statements

This presentation contains forward-looking statements. These statements are based on currentestimates and projections of the Board of Executive Directors and currently available information.Forward-looking 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 arebased on assumptions that may not prove to be accurate. Such risk factors include those discussed inthe Opportunities and Risks Report from page 111 to 118 of the BASF Report 2017. BASF does notassume any obligation to update the forward-looking statements contained in this presentation aboveand beyond the legal requirements.


Agenda

At a glance1

Strategic levers2

Segments3

Asia Pacific4


BASF shares – an attractive investment

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


Chemicals – a growth industryGlobal annual growth rate of ~3.4%*

…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

TransportationConstruction & Housing

Consumer Goods

…people by 2050

Electrical & Electronics

Chemistry as enabler to meet current and future needs

70% 50%~10 bn 30%

* Forecast average annual real change 2018–2020; BASF Report 2017, p. 121


Broad and resilient portfolio2017: Sales of €64.5 billion; EBITDA of €12.7 billion

* Not depicted here: ‘Other’ 4% of BASF Group sales and EBITDA of €(679) million

Percentage of sales 2017*

Dispersions & Pigments Care Chemicals Nutrition & Health Performance Chemicals

Functional Materials & Solutions

Catalysts Construction Chemicals Coatings Performance Materials

EBITDA €5.4 billion Petrochemicals Monomers Intermediates

25%

Performance Products

25%

Oil & Gas

Oil & Gas

5%

Agricultural Solutions

Agricultural Solutions

9%

Chemicals

EBITDA €1.3 billionEBITDA €2.4 billion EBITDA €2.1 billionEBITDA €2.3 billion


Global market access through regional presence

Kuantan

Hong KongNanjing

Freeport

Florham Park

Geismar

LudwigshafenAntwerp

São Paulo

Regional centersSelected sitesVerbund sitesSelected research and development sites

Asia Pacific

South America, Africa, Middle East

North AmericaSales €15,357 millionEBIT €1,236 millionEmployees 18,295

Sales €14,343 millionEBIT €2,209 millionEmployees 18,256

Sales €5,561 millionEBIT €335 millionEmployees 7,286

2017: Sales by location of customer; EBIT by location of company

EuropeSales €29,214 millionEBIT €4,742 millionEmployees 71,653

.


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.

Logistics savings >€600 million p.a.

Infrastructure savings>€100 million p.a.

People, Customers, Technology, Production


BASF Group increases sales and earnings slightly – solid volume growth in Q2, prices raised, currency headwinds persistedFinancial figures Q2 2018 Q2 2017 Change

€ € %Sales 16,782 million 16,264 million 3EBITDA before special items 3,295 million 3,291 million 0EBITDA 3,232 million 3,233 million 0EBIT before special items 2,356 million 2,251 million 5EBIT 2,291 million 2,181 million 5Net income 1,480 million 1,496 million (1)Reported EPS 1.61 1.63 (1)Adjusted EPS 1.77 1.78 (1)Cash flows from operating activities 2,224 million 2,969 million (25)

Sales development Volumes Prices Portfolio CurrenciesQ2 2018 vs. Q2 2017 3% 6% 0% (6%)


3.74.7 4.6

7.0 7.28.4 8.9

7.76.5

9.9

11.2

10.0 10.411.0 10.6 10.5

12.7

0

2

4

6

8

10

12

14

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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 6.3

8.5

Stepwise increase of earnings level

EBIT EBITDA Avg. EBITDA level in depicted years

EBIT and EBITDA*billion €, 2001–2017

CAGREBITDA

8%CAGREBIT17%

12.7

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


2.3 2.3

4.9 4.65.3

5.9 5.85.0

5.76.5

7.16.6

8.1

7.0

9.4

7.7

8.8

0

2

4

6

8

10

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

-0.5 -0.1

2.8 2.63.3 3.5 3.2

2.53.2

3.9 3.7

2.63.2

1.7

3.6 3.6

4.8

Free cash flowsCash flows from operating activities

Strong cash flow development

Cash flows from operating activities and free cash flowsbillion €, 2001–2017


Attractive dividend

* Dividend yield based on share price at year-end

0.65 0.70 0.700.85

1.00

1.50

1.95 1.951.70

2.20

2.50 2.60 2.70 2.80 2.90

0

1

2

3

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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% 3.4%

3.00

Dividend per share€

Dividend policy We want to grow or at least maintain

our dividend at previous year’s level

Key facts Dividend of €3.10 per share,

an increase of 10 cents

Dividend yield of 3.4% in 2017

3.10


Average annual performance with dividends reinvested

0 2 4 6 8 10 12 14

+7.0%

+7.3%

+3.6%

+11.5%

Last 10 years August 2008 – July 2018

0 2 4 6 8 10 12 14

Last 3 years August 2015 – July 2018

+5.3%

+2.0%

+4.2%

+9.5%

Delivering consistent, long-term valueCurrent market capitalization: €75 billion*

* As of July 31, 2018

Euro Stoxx 50

DAX 30

MSCI World Chemicals

BASF


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 the previous year’s level

Financial targets for the coming years


Innovations for a sustainable future

Investments in organic growth

M&A opportunities and portfolio pruning measures

Operational excellence and cost discipline

We aim to grow sales and earnings faster than global chemical productionin the coming years, driven by

Our priorities


Outlook 2018* for BASF Group confirmed Slight sales growth

Slight increase in EBIT before special items

Slight decline in EBIT

Significant premium on cost of capital with considerable decline in EBIT after cost of capital

Underlying economic assumptions for 2018 GDP growth: +3.0% (unchanged) Growth in global industrial production: +3.2% (unchanged) Growth in global chemical production: +3.4% (unchanged) Exchange rate: US$1.20 per € (unchanged) Oil price (Brent): US$70 per barrel (previous assumption: US$65 per barrel)

* For sales, “slight” represents a change of 1–5%, while “considerable” applies to changes of 6% and higher. For earnings, “slight” means a change of 1–10%, while “considerable” is used for changes of 11% and higher. This outlook takes into account the transactions with Bayer and Solvay. The intended merger of our oil and gas activities with the business of DEA Deutsche Erdoel AG and its subsidiaries is not taken into account in this outlook.


Agenda

At a glance1

Segments3

Asia Pacific4

Strategic levers2► Portfolio development► Investments► Innovation► Sustainability► Operational excellence


Continuous global portfolio development to maintain a balanced portfolio

target(in % of sales*)~50% ~50%

Divestment of businesses,e.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

Specialties and solutions Differentiated commodities

Attractive markets Differentiation by process

technologies and integration

Attractive markets Differentiation by customer

proximity and innovations

* Excluding Oil & Gas sales


Portfolio development towards more market-driven and innovative businesses

Strong Partnerships Gazprom PETRONAS Sinopec Total

Selected transactions 2010−today

BASFcore business

~€7.7 billion salesin emerging and innovation-driven businesses

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

Divestitures

~€21.1 billion salesin businesses with limited fit and differentiation potential

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


Clear acquisition criteria

We want to acquire businesses which …

provide a return on investment above the WACC

are EPS accretive by year three at the latest

We want to acquire businesses which …

generate profitable growth above the industry average

are innovation-driven

offer a special value proposition to customers

reduce earnings cyclicality

Acquisitioncriteria

Strategic acquisition criteria Financial acquisition criteria


BASF acquired agricultural solutions businesses and assets from Bayer

All-cash purchase price

€7.6 billion (subject to certain adjustments at closing, asset and share deal)

Sales 2017Sales 2016

~€2.2 billion~€2.0 billion

Sales by region

~60% North America~15% South America~15% Europe, Middle East, Africa ~10% Asia Pacific

EBITDA 2016* ~€550 million

R&D expenses 2016 ~€350 million

Sites 5 chemical production and formulation sites 17 R&D sites Regional seed production and breeding facilities

BASF to become an even better partner for farmersby strengthening its crop protection portfolio and entering the seeds business in key agricultural markets

Cash EPS accretive in the first full fiscal year, EPS accretive by 2020

Financing through a combination of cash on hand, commercial papers and bonds

Closing took place in August 2018

Combined figures of transactions with Bayer Facts about transactions with Bayer

* On a pro-forma adjusted basis


Non-selective herbicides with strong market presence, ideal extension of our herbicide portfolio

Attractive seed treatment business Promising seed and trait research,

e.g., hybrid wheat and further R&D projects Highly innovative digital Ag activities

.

.

Fungicides

Insecticides

R&Dprojects

Seeds

Existing BASF Agricultural Solutions portfolio

New businesses and assets from Bayer

Complementary additions to portfolio

Functional Crop Care*

Acquisition adds excellent businesses and assets from Bayer and enhances our innovation potential in Agricultural Solutions

Digital Ag activities

Herbicides

Trait research

* Including seed treatment

Significant seed businesses for key row crops,such as canola/oilseed rape, cotton and soybeans

Global vegetable seeds business

New parts of portfolio


Pro-forma 2017 figures of future Agricultural Solutions segment

Sales by business areabillion €

Sales by regionbillion €

R&D expensesbillion €

EBITDA billion €

~7.9~7.9

~1.8

Acquired businesses

~0.9

* Reported under Other

South America, Africa, Middle East

Asia Pacific Europe

North America

BASF Crop Protection and Plant Biotech*

Acquired businesses

BASF Crop Protection

Acquired businesses

Seeds

Crop Protection

Acquired businesses

BASF Crop Protection


Update on further recently announced M&A activities

BASF and LetterOne intend to mergetheir oil and gas subsidiaries

BASF and Solenis to join forces by combining paper and water chemicals

Pro-forma sales 2017: ~€2.4 billion BASF to hold a 49% share of the

combined entity; funds managed by Clayton, Dubilier & Rice to hold 51%

Closing is anticipated for the end of 2018 at the earliest

Pro-forma sales 2017: ~€4.7 billion Pro-forma EBITDA 2017: ~€2.8 billion BASF and LetterOne conducted

a confirmatory due diligence and are negotiating transaction agreements

Closing could be expected in Q1 2019

BASF to acquire Solvayʼs integrated global polyamide business

Purchase price: ~€1.6 billion Sales 2016: ~€1.3 billion EBITDA 2016: ~€200 million On June 26, 2018 the EU Commission

opened an in-depth investigation and will likely take a decision in Q4 2018


Agricultural Solutions4%

Investments in organic growthInvestments of ~€4.0 billion planned for 2018

Performance Products

16%Oil & Gas*18%

€19.0 billion

Capex budget 2018–2022 by segment

Other18%

Chemicals25%

Capex budget 2018–2022 by region

Asia Pacific14%

North America19%

Other**5%

Functional Materials& Solutions

19%

€19.0 billion

South America***8%

Europe 54%

* If the merger of BASF’s oil and gas activities with DEA is consummated as intended, these capital expenditures will no longer be reported as investments by the BASF Group. ** Alternative sites currently being investigated; *** Including Africa and Middle East


57%19%

17%

7%

2015

7%74%

5%

6%

7%

1%

Asia and China continue to dominate global chemical production

Real chemical production (excl. pharma)(trillion US$, base year 2015)

2015CAGR3.4%

2025

World

CAGR4.4%2.0 3.1

Asia Pacific

2025

Source: BASF

3.6 5.0

Greater China

South KoreaJapan

South Asia

Australia, New Zealand

South East AsiaAsia Pacific

OthersEurope

North America

62%

16%

15%7% 5%

78%

5%

5%6%

1%


BASF investigates establishment of second Verbund site in China

Parameters 100% BASF-owned and operated Potential investment of up to

US$10 billion until around 2030 Investment to evolve in phases Startup of first plants in 2026

at the latest Most advanced Verbund site with

smart manufacturing concept Environment, health and safety

concept according to BASF’s global standards and local laws and regulations

Next step: Pre-feasibility study

Tibet

Qinghai

Sichuan

Yunnan

Hainan

Hebei

Heilongjiang

Liaoning

Shanxi

BeijingTianjin

Shandong

Henan Jiangsu

Zhejiang

ShanghaiAnhui

Jiangxi

Guizhou

Chongqing

Fujian

Hubei

Hunan

GuangdongGuangxi

Inner Mongolia

Gansu

Ningxia

Shaanxi

Xinjiang

Jilin

Nanjing

Hong Kong

Asia Pacific headquartersVerbund siteGreater China headquarters

Legend


Oil & Gas2%

Innovation will drive future growth


Chemicals7%

Performance Products21%

Corporate Research20%

Key facts

€1.9 billion R&D expenditures in 2017

R&D expense to sales ratio ~3%

~10,000 employees in R&D

~3,000 projects

~800 new patents in 2017

Research Verbund: Cooperations with more than 600 excellent partners from universities, startups and industry

In 2017, sales of >€9 billion from innovations launched on the market in the past five years

R&D expenditures 2017

€1.9 billion

Functional Materials & Solutions

23%


Selected key technology capabilities reflect where BASF requires continued effort and resources to safeguard today’s and tomorrow’s excellence in innovation.

Polymer technologies

Biotechnology

Production processes Materials

Catalysis

Biodegradable and bio-based

materialsEnabling methods

Corporate Research: BASF’s key technology capabilities are bundled in seven focus areas

BASF’s key technology

capabilities


BASF – capturing the fast-growing battery materials market

Market projections for 2025: 8-15 million electric vehicles* built per year 600-900 kt of CAM in e-mobility€18-24 billion CAM market size

Unparalleled access and commitment to the automotive industry Strategic global supply, technology and production partnerships

Rapid expansion to global, cost-competitive asset footprint

Well-established position in key CAM technologies (NCA & NCM)** Industry leading position in NCA capacity

E-mobility drives battery materials growth

Chemistry of cathode active materials (CAM) is key to

address e-mobility challenges

**NCA: nickel cobalt aluminum oxide; NCM: nickel cobalt manganese

BASF enables electromobility

*Electric vehicles: BEV, HEV and PHEV

20252017

~15-20% p.a.

Li-ion batterymarket


Key supplier in battery materials, well-positioned for further growth

Shanghai, ChinaR&D, Application Technology Center

Onoda/Kitakyushu, JapanBASF TODA Battery Materials

Beachwood, OhioR&D, ApplicationTechnology Center

Elyria, OhioBASF TODA America

Europe, planned production

Amagasaki, JapanR&D, Application Technology Center

Battle Creek, MichiganBASF TODA America

Shanghai, China BASF Battery Materials Headquarters

Production siteTechnology center

Ludwigshafen, GermanyR&D, ApplicationTechnology Center

Innovation in battery materials Leading technology portfolio and core patents ~€250 million total R&D spent so far ~150 scientists at four R&D centers across all regions Highest energy density CAM commercialized for EV application

Market presence Triple-digit-million euro battery material sales Supplier to world’s largest cell producers Already supplying leading OEMs’ platforms Under qualification for future key platforms


Sustainable Solution Steering®

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

4.3% 0.1%

>60,000 product applications analyzed

27.3% Accelerators

– strong growth in their markets

– deliver margins above the average

– represent majority of BASF’s R&D pipeline

68.3% Performers

<1% Challenged products

27.3%

68.3%

Substantial sustainability contribution in the value chain

Meets basic sustainability standards on the market

Specific sustainability issues which are being actively addressed

Significant sustainability concernidentified and action plan developed

SustainableSolutionSteering

Percentage of sales 2017


BASF products and solutions in everyday lifeInnovations for a sustainable future

Luquafleece®

Tinosorb®

Infinergy®

Nutrilan®

Sokalan®

Cellasto®

Coatings

Tinuvin®

Superabsorbents

Ultramid®

Trilon® M

ecoflex® / ecovio®

Omega-3


Resource efficiencyResponsible use of carbon sources

* BASF carbon mass balance calculation (2017, non-audited) ** Based on the chemical industry standard of the International Council of Chemical Associations (ICCA) and the World Business Council for Sustainable Development (WBCSD)

We are committed to resource efficiency and climate protection

BASF uses carbon raw materials responsibly: 82% of carbon converted to products, 17% consumed for process energy and converted to CO2, 1% waste*

Comparisons with European emissions trading benchmarks show that our chemical plants operate at above-average energy efficiency

23 million tons of CO2 emissions by BASF worldwide in 2017 compared to 10–30 million tons p.a. for one coal-fired power plant

Customers’ use of BASF’s climate protection products sold in 2017 avoided 570 million tons of CO2 equivalents (thereof 6% attributable to BASF)**

In 2017, BASF achieved CDP leadership status once again


0

0,.001

2016 2017 2018 Total

DrivE program

Optimization of processes and structures in all regions, including

– manufacturing

– incremental capacities

– productivity increase

Project timeline: 2016–2018€350

million

€650 million

Goal €1 billion

Annual earnings contribution DrivEmillion €

1,000

Operational excellenceDrivE with ~€1 billion targeted earnings contribution from end of 2018 onwards

500

€500million

€150million


Strong track record in operational excellence

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

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EBITDA

Sales

Fixed Costs

CAGREBITDA

8%

CAGRSales 5%

BASF Group* 2001–2017 indexed; CAGR 2001–2017

3%

CAGRFixed Costs


Digitalization will support BASF’s growth and efficiency

Digital Business Models

Smart Innovation

Smart Manu-facturing

Smart Supply Chain

Growth Digital business models Customer connectivity Digitalization in R&D

New revenue streams Increased supply share Higher innovation output

Predictive maintenance Augmented reality in production Smart supply chain

Increased capacity Increased work efficiency Reduced working capital

Efficiency


Agenda

Strategic levers2

Segments3► Chemicals► Performance Products► Functional Materials & Solutions► Agricultural Solutions► Oil & Gas

Asia Pacific4

At a glance1


ChemicalsEarnings slightly down due to higher fixed costs and lower cracker margins, but still on a high level

Sales Q2 2018 vs. Q2 2017million €

EBIT before special items million €

Intermediates808+7%

Monomers1,731+1%

Petrochemicals1,593+1%

€4,132+2%


1,120 1,102 1,053 1,134 1,074

0

400

800

1,200

Q2 Q3 Q4 Q1 Q22017 2018


Performance ProductsSlightly higher earnings driven by higher margins

Performance Chemicals974(1%)

Nutrition & Health391(16%)

Care Chemicals1,188(6%)

Dispersions & Pigments1,396(3%)

€3,949(5%)


Sales development Volumes Prices Portfolio CurrenciesQ2 2018 vs. Q2 2017 (2%) 2% (1%) (4%)


405 385

111

470409

0

200

400

600

Q2 Q3 Q4 Q1 Q2

2017 2018


Functional Materials & Solutions Sales growth on higher prices and volumes, earnings decline due to higher fixed and raw material costs

Coatings9950%

Catalysts1,884+13%

ConstructionChemicals

664+3%

Performance Materials1,997+3%

€5,540+5%



422 397

267333 338

0

200

400

600

Q2 Q3 Q4 Q1 Q2


2017 2018


Agricultural SolutionsEarnings increased slightly due to a more favorable product mix


1,526 1,501

0

1,000

2,000

Q2 2017 Q2 2018

272 278

0

200

400

Q2 2017 Q2 2018

(2%)

+2%




Oil & GasConsiderably higher sales and earnings


814

998

0

200

400

600

800

1,000

1,200

Q2 2017 Q2 2018

Sales development Volumes Prices/Currencies PortfolioQ2 2018 vs. Q2 2017 5% 18% 0%

+23%


183

391

0

100

200

300

400

500

Q2 2017 Q2 2018

Net income million €

122151

0

50

100

150

200

250

Q2 2017 Q2 2018


Review of “Other”

Financial figures Q2 2018 Q2 2017million € million €

Sales 662 476

EBIT before special items (134) (151)

Thereof Costs of corporate research (90) (93)

Costs of corporate headquarters (66) (58)

Foreign currency results, hedging and other measurement effects 31 142

Other businesses 17 (12)

Special items (17) (30)

EBIT (151) (181)


Cash flow development 1st half 2018

Cash flow development H1 2018 H1 2017million € million €

Cash flows from operating activities 3,455 3,802Thereof Changes in net working capital (1,221) (1,684)

Miscellaneous items (351) 178

Cash flows from investing activities (1,735) (2,365)Thereof Payments made for tangible / intangible assets (1,449) (1,642)

Acquisitions / divestitures 64 (65)

Cash flows from financing activities (518) (886)Thereof Changes in financial liabilities 2,526 1,932

Dividends (3,044) (2,837)

Free cash flow 2,006 2,160


Balance sheet remains strong

Balance sheet June 30, 2018 vs. December 31, 2017billion €

Total assets increased by €3.1 billion, mainly due to higher accounts receivable, trade as well as cash and cash equivalents

Net debt increased by €1.1 billionto €12.6 billion

Equity ratio at 43.1% as of June 30, 2018

Liquid funds

Accountsreceivable

Long-termassets

Inventories

Other assetsOtherliabilities

Financialdebt

Equity

26.3 26.0

20.3 18.0

35.334.8

Jun 30, 2018 Dec 31, 20170.57.7 6.5

4.3 3.2

11.411.2

10.710.3

47.347.6

Jun 30, 2018 Dec 31, 2017

81.9 78.8 81.9 78.8

Disposal group


Agenda

At a glance1

Strategic levers2

Segments3

Asia Pacific4


BASF is present in 18 markets

~100 production sites*

~125 sales offices*

18,256 employees**

~€14.3 billion sales***

~€2.2 billion EBIT

BASF in Asia Pacific 2017

Nanjing

Hong Kong

Kuala Lumpur

Kuantan

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

** As of December 31, 2017.

*** Sales by location of customer.

Regional centerVerbund sitesSelected sitesR&D/Technical centersShared Services Center


* By location of customer

Asia Pacific continues to deliver strong sales and profit growth for BASF Group

8%

CAGR 2015-17

0.2 0.20.4

0.7

1.01.2

1.1

0

0.5

1

1.5

H1 H2 H1 H2 H1 H2 H1

2016 2017 2018

10 quarters of year-on-year growth

BASF Asia Pacific EBITbillion €

123%

CAGR 2015-17

20152016 20172015 2018H1 H2 H1 H2 H1 H2 H1

6.5

7.5

0

6.0

7.0

8 quarters of year-on-year growth

BASF Asia Pacific net sales*

billion €

6.4

6.05.7

6.5

7.07.3

7.4


Functional Materials & Solutions36%


BASF in Asia Pacific: Balanced portfolio

Sales* by segment in 2017(billion €)

Sales* by sub-region in 2017(billion €)

Performance Products 29%

Other3%

Chemicals28%

€14.3 billion

ASEAN15%

Greater China51%

Australia, New Zealand3%

South Asia11%

Japan12%

South Korea8%

€14.3 billion

*Sales to third parties by location of customer; figures do not include sales of joint ventures consolidated at equity such as BASF-YPC Ltd., Nanjing, China

South Asia: India, Pakistan, Bangladesh, Sri Lanka

ASEAN: Singapore, Philippines, Vietnam, Thailand, Indonesia, Malaysia, Myanmar


Balanced asset base in Asia Pacific: Investments for profitable growth

Planned investments 2018–2022: ~€2.7 billion (14% of BASF Group)

Increasing focus on investments where BASF: − is technologically leading − has a competitive advantage − expects strong profitable market

growth

Target remains to increase share of sales from own manufactured products (2017: >60%)

Selected major capex projects*

Engineering plasticsPolymer dispersions2-Ethylhexanoic acid

Innovation campus MumbaiAutomotive coatingsAutomotive catalystsElectronic materials

MDI (Chongqing)Innovation Campus (Shanghai)

NeopentylglycolIsononanol

Coating resinsButanediol/PolyTHF®

Specialty amines Ethylene oxide

PolyvinylpyrrolidoneEmollients and waxes

Automotive coatings

Startup 2015–2017

Startup planned for 2018–2022

China

Asia Pacific**

MDI (Caojing)Plastic additivesSpecialty aminesPropionic acidNeopentylglycolAlkyl polyglucosidesAutomotive application center

Aroma chemicalsHighly reactive polyisobuteneSpecialty plasticsPlastic additivesAutomotive catalysts

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


Innovation in Asia Pacific – for Asia and the world

R&D Center AustraliaFocus: mining

Innovation Campus Asia Pacific Phase I, Shanghai Focus: polymers & materials

2012 2014

R&D Center Japan Focus: electronics,

battery materials

2017

Innovation Campus Asia Pacific, Mumbai Focus: crop protection, process engineering

2015

Innovation Campus Asia Pacific Phase II, Shanghai Focus: polymers & materials, process engineering, formulations

Advanced Materials & Systems Research

global HQ in Shanghai

2013

R&D Center SouthKorea Focus: electronics

* As of December 31, 2017

At a glance Two regional Innovation Campuses >1,100 R&D personnel*

2018

Application Center Shanghai Focus: automotive

Documents

We create chemistry for a sustainable future - BASF€¦ · Hong Kong, August 30, 2018. 2 August 2018 | BASF Capital Market Story Cautionary note regarding forward-looking statements