We create chemistry for a sustainable future · February 2018 | BASF Capital Market Story. Chemicals – a growth industry. Global annual growth rate of ~3.4%* …more food needed

We create chemistry for a sustainable futureStephan KothradePresident, Greater China and Functions Asia-PacificTokyo, March 1-2, 2018

February 20182 | BASF Capital Market Story

Cautionary note regarding forward-looking statements

This presentation contains forward-looking statements. These statements are based oncurrent estimates and projections of the Board of Executive Directors and currently availableinformation. Forward-looking statements are not guarantees of the future developments andresults outlined therein. These are dependent on a number of factors; they involve variousrisks and uncertainties; and they are based on assumptions that may not prove to beaccurate. Such risk factors include those discussed in the Opportunities and Risks Reportfrom pages 111 to 118 of the BASF Report 2017. BASF does not assume any obligation toupdate the forward-looking statements contained in this presentation above and beyond thelegal requirements.


Agenda

At a glance1

Strategic levers2

Asia Pacific3

Segments4


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

Exploration & Production; Natural Gas Transport

5%

Agricultural Solutions

Crop Protection

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 with considerable sales and earnings increasein the fourth quarter and the full year 2017Financial figures Q4 2017 Change Q4 2016 FY 2017 Change FY 2016

billion € % billion € %Sales 16.1 8 64.5 12EBITDA before special items 2.9 27 12.5 21EBITDA 3.0 20 12.7 21EBIT before special items 1.9 58 8.3 32EBIT 1.9 57 8.5 36Net income 1.5 123 6.1 50Operating cash flow 1.2 (37) 8.8 14Reported EPS (€) 1.68 124 6.62 50Adjusted EPS (€) 1.29 63 6.44 33

Sales development Volumes Prices Portfolio CurrenciesQ4 2017 vs. Q4 2016 4% 9% 0% (5)%FY 2017 vs. FY 2016 4% 8% 1% (1)%


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

Stepwise increase of earnings level

EBIT EBITDA Avg. EBITDA level in depicted years

EBIT and EBITDA*billion €, 2001–2017 CAGR

EBITDA

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

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


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

Free cash flowOperating cash flow

-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

Strong cash flow development

Operating cash flow and free cash flowbillion €, 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 proposal of €3.10

per share, an increase of 10 cents

Dividend yield of 3.4% in 2017

Proposal3.10


Average annual performance with dividends reinvested

0 2 4 6 8 10 12 14

+6.8%

+7.9%

+2.6%

+12.3%

Last 10 years February 2008 – January 2018

0 2 4 6 8 10 12 14

Last 3 years February 2015 – January 2018

+9.6%

+5.2%

+7.2%

+10.9%

Delivering consistent, long-term valueCurrent market capitalization: €87 billion*

* As of January 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*

We anticipate slightly higher sales in 2018.

EBIT before special items is expected to be up slightly on the 2017 level.

EBIT is forecast to decline slightly in 2018.

We aim to once again earn a significant premium on our cost of capital in 2018. However, EBIT after cost of capital will decrease considerably.

* With respect to EBIT before special items, “slight” means a change of 1-10%, while “considerable” is used for changes of 11% and higher. “At prior-year level” indicates no change (+/-0%).This outlook takes into account the agreed transactions with Bayer and Solvay. The intended merger of our oil and gas activities with the business of DEA Deutsche Erdoel AG and itssubsidiaries is not taken into account in this outlook.


Underlying assumptions for outlook 2018 Economic environment 2018 2017GDP growth +3.0% +3.1%

Growth in industrial production +3.2% +3.3%

Growth in chemical production* +3.4% +3.5%

Exchange rate US$1.20 per euro US$1.13 per euro

Oil price (Brent) US$65 per barrel US$54 per barrel

* Excluding pharma

Transactions Consideration inthe 2018 outlook

Expected closing Financial impact

Acquisition of Solvay’s global polyamide business included Q3 2018 No material effect on sales and earnings in 2018 expected

Acquisition of significant parts of Bayer’s seed and non-selective herbicide businesses included H1 2018

Likely to have a positive impact on sales and a negative impact on

earnings for the Agricultural Solutions segment and BASF Group in 2018

Merger of BASF’s and LetterOne’s oil and gas activities into Wintershall DEA not included H2 2018 Deconsolidation only after signing

of definitive transaction agreements


Outlook 2018 by segment

EBIT before special items Forecast 2018* 2017million €

Chemicals Considerable decline 4,233

Performance Products Considerable increase 1,416

Functional Materials & Solutions Considerable increase 1,617

Agricultural Solutions Slight decline** 1,033

Oil & Gas Considerable increase 793

Other Slight increase (764)

BASF Group Slight increase 8,328

* With respect to EBIT before special items, “slight” means a change of 1-10%, while “considerable” is used for changes of 11% and higher. “At prior-year level” indicates no change (+/-0%).** Excluding the agreed transaction with Bayer, we expect a slight increase in EBIT before special items in the Agricultural Solutions segment.


Agenda

At a glance1

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

~€5.5 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

Divestitures

~€21.0 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


Complementary acquisitions to strengthen the portfolio of BASF Group

Solvayʼs integrated global polyamide business

Purchase price: ~€1.6 billion Sales 2016: ~€1.3 billion EBITDA 2016: ~€200 million Market CAGR: >3.5% Closing expected in Q3 2018

Significant parts of Bayerʼs seed and non-selective herbicide businesses

Purchase price: ~€5.9 billion Sales 2016: ~€1.3 billion EBITDA 2016: ~€385 million Sales CAGR: ~15% (2014–2016) Closing expected in the first half 2018

ChemetallSurface treatment business

Purchase price: ~US$3.1 billion Sales 2015: ~US$845 million EBITDA 2015: ~US$200 million Sales CAGR: ~7% (2007–2015) Closed in December 2016


BASF signed agreement to acquire significant parts of Bayer’s seed and non-selective herbicide businesses

Fully enabled seed and trait businesses Attractive and sizeable seed portfolio for canola/oilseed

rape, soybean and cotton in the Americas and Europe

Excellent trait research for canola, soybean and cotton

LibertyLink® technology for herbicide tolerance and related trademarks

Complementary crop protection business Global glufosinate-ammonium-based non-selective herbicide

business

State-of-the-art production facilities in the U.S., Canada and Germany

February 201825 | BASF Capital Market Story * Application examples

Broader global scope Enhanced presence, especially in Asia and South America Stronger capabilities to serve global and regional

customers

Wider range of engineering plastics Technyl®, Ultramid®, Ultradur®, Ultraform®, Ultracom®

Broadening technical skills and innovation capabilities* Heat-resistant and high-voltage electrical and electronic parts Tailor-made solutions for components in automotive Mechanically strong and thermally stable consumer goods

Improved reliability of supply Backward integration into all key raw materials for polyamide 6.6 Fully integrated engineering plastics value chain

BASF to acquire Solvay’s global polyamide business


* No later than 36 months after closing, this bond will be converted into new shares in Wintershall DEA, resulting in a higher shareholding ratio for BASF

BASF and LetterOne signed letter of intent to merge their oil and gas subsidiaries Wintershall and DEA

Combined business with pro-forma 2016 sales of €4.3 billion, EBITDA of €2.2 billion and net income of €326 million

Creation of one of the largest independent European exploration and production companies with significant growth potential, optimization of the portfolio footprintof the combined business and realization of synergies

BASF to initially hold 67% and LetterOne 33% in Wintershall DEA; value of Wintershall’s gas transportation business to be reflected through the issuanceof a mandatory convertible bond to BASF*

BASF and LetterOne are currently conducting a confirmatory due diligence andare negotiating definitive transaction agreements; closing could be expected inthe second half of 2018, subject to customary regulatory approvals

Initial Public Offering (IPO) envisaged in the medium term


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%

*** Including Africa and Middle East

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


Selected investment projects

Replacement of BASF’s acetylene plant in Ludwigshafen

~20 production facilities on the site use acetylene as a raw material 90,000 tons per year World’s most efficient

production process Startup end of 2019

New ibuprofen plant in Ludwigshafen; capacity expansion in the U.S.

First world-scale ibuprofen plant in Europe Additional capacity

expansion of ibuprofen plant in Bishop, Texas Investments: ~€200

million for both projects Startup in 2021

Expansion of BASF’s mobile emissions catalysts site in Poland

BASF’s largest emissions catalysts production site in Europe New production lines and

additional infrastructure Best-in-class technology

to meet tightening NOx and particulate emissions standards for diesel or gasoline engines

New plastic additives plant in Shanghai, China

Production of antioxidants, related forms and blends 42,000 tons per year Commercial production to

start by 2020


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%


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

* BASF TODA America: pending closing

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


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


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

22 million tons of CO2 emissions by BASF worldwide in 2016 compared to 10–30 million tons p.a. for one coal-fired power plant

Customers’ use of BASF’s climate protection products sold in 2016 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

At a glance1

Strategic levers2

Asia Pacific3


2015

10%70%

5%

7%

7%

1%

55%

21%

16%

9%

Asia and China continue to dominate global chemical productionReal chemical production (excl. pharma)(trillion US$)

2015CAGR3.4%

2020

World

CAGR4.4%2.0 2.5

Asia Pacific

2020

Source: BASF

3.7 4.3

58%

19%

15%

8% 9%

72%

4%

7%

7%

1%

Greater China

South KoreaJapan

South Asia

ANZ

South East AsiaAsia Pacific

OthersEurope

North America


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


BASF’s performance in Asia Pacific

* By location of customer

0.0

1.0

2.0

2012 2013 2014 2015 2016 2017

2.2

EBIT (billion €)

0.9 0.8 0.70.4

1.1

0

5

10

15

2012 2013 2014 2015 2016 2017

12.5 12.4 12.3 12.3

Sales* (billion €)14.3

12.2 Developments in 2017 Considerable sales growth across all

sub-regions and business segments, driven by higher prices and volumes

Significant increase in earnings, led by the Chemicals segment

Strong underlying demand across most sectors and markets


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: ~€3 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)


Agenda

At a glance1

Strategic levers2

Asia Pacific3

Segments4


ChemicalsHigher earnings driven by strong margins and higher volumes

Sales Q4 2017 vs. Q4 2016*million €

EBIT before special items* million €

Intermediates742+7%

Monomers1,786+17%

Petrochemicals1,630+35%

€4,158+21%


629

1,053

0

400

800

1,200

Q4 2016 Q4 2017

2,032

4,233

0

1,000

2,000

3,000

4,000

5,000

FY 2016 FY 2017

+67% +108%

* Effective January 1, 2017, the Monomers and Dispersions & Pigments divisions’ activities for the electronics industry were combined into the global Electronic Materials business unit and allocated to the Dispersions & Pigments division in the Performance Products segment. The 2016 figures have been adjusted accordingly.


Performance ProductsHigher volumes and prices could not offset increased raw materials costs; earnings declined

Performance Chemicals923(3)%

Nutrition & Health4430%

Care Chemicals1,241+5%

Dispersions & Pigments1,225+4%

* Effective January 1, 2017, the Monomers and Dispersions & Pigments divisions’ activities for the electronics industry were combined into the global Electronic Materials business unit and allocated to the Dispersions & Pigments division in the Performance Products segment. The 2016 figures have been adjusted accordingly.

Sales Q4 2017 vs. Q4 2016*million €

€3,832+2%

Sales development Volumes Prices Portfolio CurrenciesQ4 2017 vs. Q4 2016 7% 1% (1)% (5)%FY 2017 vs. FY 2016 5% 1% (1)% (1)%

EBIT before special items* million €

237

111

0

100

200

300

Q4 2016 Q4 2017

1,777

1,416

0

1,000

2,000

FY 2016 FY 2017

(53)%

(20)%


Functional Materials & Solutions Sales growth on continued good demand; raw material price pressure led to earnings decrease

Coatings1,021+11%

Catalysts1,789+3%

ConstructionChemicals

588+4%

Performance Materials1,913+10%

Sales Q4 2017 vs. Q4 2016million €


€5,311+7%

EBIT before special items million €

458

267

0

300

600

Q4 2016 Q4 2017

1,946

1,617

0

1,000

2,000

FY 2016 FY 2017

(42)%

(17)%


Agricultural SolutionsEarnings increase due to higher volumes and improved margins

1,281 1,328

0

1,000

2,000

Q4 2016 Q4 2017


EBIT before special items million €

Sales development Volumes Prices Portfolio CurrenciesQ4 2017 vs. Q4 2016 14% (3)% 0% (7)%FY 2017 vs. FY 2016 6% (3)% 0% (1)%

+4%

79

207

0

100

200

Q4 2016 Q4 2017

1,087 1,033

0

250

500

750

1,000

1,250

1,500

FY 2016 FY 2017

+162%

(5)%


Oil & GasHigher oil and gas prices led to earnings increase

922862

0

500

1,000

Q4 2016 Q4 2017


EBIT before special items / net income million €

(7)%

163 182

260

318

0

100

200

300

400

517

362

793719

0

200

400

600

800

1,000

Sales development Volumes Prices / Currencies PortfolioQ4 2017 vs. Q4 2016 (18)% 11% 0%FY 2017 vs. FY 2016 4% 13% 0%

EBIT before special items Net income

Q42016

Q42017

Q42016

Q42017

FY2016

FY2017

FY2016

FY2017

EBIT before special items Net income


Review of “Other”

Financial figures Q4 2017 Q4 2016 FY 2017 FY 2016million € million € million € million €

Sales 608 518 2,242 2,018

EBIT before special items (38) (386) (764) (1,050)

Thereof Costs of corporate research (112) (131) (379) (395)

Costs of corporate headquarters (57) (57) (224) (222)

Foreign currency results, hedging and other measurement effects (23) (182) (28) (331)

Other businesses 54 (12) 60 54

Special items (7) (57) (35) (41)

EBIT (45) (443) (799) (1,091)


Cash flow development in 2017

Cash flow development 2017 2016million € million €

Cash provided by operating activities 8,785 7,717Thereof Changes in net working capital (1,167) 104

Miscellaneous items (339) (734)

Cash used in investing activities (3,958) (6,490)Thereof Payments made for tangible / intangible assets (3,996) (4,145)

Acquisitions / divestitures 27 (2,164)

Cash provided by financing activities 394 (2,160)Thereof Changes in financial liabilities 3,248 579

Dividends (2,873) (2,767)

Free cash flow 4,789 3,572


Balance sheet remains strong

Balance sheet 2017 vs. 2016billion €

Total assets increased by €2.3 billiondue to higher cash and cash equivalents related to the financing of the announced acquisitions

Equity ratio at 44.1%

Provisions for pensions and similar obligations decreased by €1.9 billion

Net debt decreased by €2.9 billion to€11.5 billion

Liquid funds

Accountsreceivable

Non-currentassets

Inventories

Other assets

Otherliabilities

Financialdebt

Equity

26.0 27.6

18.0 16.3

34.8 32.6

Dec 31, 2017 Dec 31, 2016

6.5 1.9

3.23.0

11.211.0

10.310.0

47.650.6

Dec 31, 2017 Dec 31, 2016

76.578.8 76.578.8


Biography

Dr. Stephan Kothrade

President Functions Asia Pacific, President and Chairman Greater China, BASF

Stephan Kothrade was born in 1967 in Landshut, Germany. He has a doctorate in Organic Chemistry from the University of Munich.

Professional Career 2016 President Functions Asia Pacific, President and Chairman Greater China,

BASF, Shanghai, China2012 President, BASF-YPC Company Ltd, and Managing Director of Nanjing

Verbund Site, Nanjing, China2008 Senior Vice President, Plant Operations, Engineering & Infrastructure, BASF,

Antwerpen N.V., Antwerp, Belgium2006 Managing Director, BASF Hungária & Southeast Europe, Budapest, Hungary2003 Director Global Procurement, Inorganic Chemicals and Intermediates, BASF,

Aktiengesellschaft, Ludwigshafen2000 Group leader Strategic Planning: Mergers & Acquisitions, Strategic Business

Unit Strategies, BASF, Aktiengesellschaft, Ludwigshafen1998 Plant Manager, Lutonal Plant, BASF, Aktiengesellschaft, Ludwigshafen1995 Joined BASF Aktiengesellschaft, Ludwigshafen,

Polymer Research


Contact

Nirath PerakathInvestor Relations, Asia Pacific

Phone: +852 2731 0143Email: [email protected]

www.basf.com/en/company/investor-relations.html

mailto:[email protected]

Documents

We create chemistry for a sustainable future · February 2018 | BASF Capital Market Story. Chemicals – a growth industry. Global annual growth rate of ~3.4%* …more food needed