BASF - A sustainable investment

1. BASF – A sustainable investment January 2011 BASF SRI Story January 2011 1

2. BASF – The Chemical Company Investment Highlights No 1 chemical company worldwide Competitive advantage based on unique Verbund concept with approx. 380 production sites Superior growth opportunities through strong positioning in growth markets, acquisitions in core businesses and excellent innovation platform Sustainable shareholder returns For 2010, we expect sales of ~€63 billion and EBIT before special items of more than €8 billion BASF SRI Story January 2011 2

3. BASF today – a well-balanced portfolio Total sales 2009: €50.7 billion Percentage of sales 2009 Chemicals Plastics* Performance Functional Agricultural Oil & Gas Products Solutions Solutions 15% 14% 18% 14% 7% 22% Inorganics Performance Dispersions & Catalysts Crop Exploration & Polymers Pigments Protection Production and Petrochemicals Polyurethanes Care Construction Natural Gas Chemicals Chemicals Trading Intermediates Paper Coatings Chemicals Performance Chemicals * Styrenics reported under ‘Other’ BASF SRI Story January 2011 3

4. "A business cannot be successful in the long term if it does not act responsibly toward the environment and society. That is why sustainability is an integral part to our strategy." Dr. Jürgen Hambrecht Chairman of the Board of Executive Directors BASF SRI Story January 2011 4

5. Sustainability: a board-level responsibility Executive Board BASF SE Executive Board BASF SE Sustainability Council Sustainability Council Headed by Dr. Harald Schwager Headed by Dr. Harald Schwager Sustainability Sustainability Center Center Central Units Central Units Functional Units Functional Units Operating Units Operating Units Regions Regions BASF SRI Story January 2011 5

6. Long-term success through Sustainability Three pillars of Sustainability Social Economy Environment Responsibility % + $€ Create value Provide solutions Generate trust BASF SRI Story January 2011 6

7. 1 | Delivering sustainable returns 2 | Minimizing environmental impact 3 | Providing sustainable solutions for the future 4 | Taking responsibility for employees and society BASF SRI Story January 2011 7

8. Business dynamics remained strong in Q3 Sales (billion €) EBIT before special items (billion €) 20 2.5 2.2 2.2 15.5 16.2 15.8 2.0 16 2.0 12.8 13.2 1.5 12 1.5 1.2 8 1.0 4 0.5 0 0.0 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2009 2010 2009 2010 Sales development Period Volumes Prices Portfolio Currencies Q3’10 vs. Q2’10 (3)%* 0% 0% 0% Q3’10 vs. Q3’09 5% 10% 0% 8% 1-9 ’10 vs. 1-9 ’09 14% 6% 2% 4% * +4% volume growth w/o Oil & Gas BASF SRI Story January 2011 8

9. Strong cash flow generation Cash Flow (billion €) 7 6 5.3 5 4 3.8 3 2 1 0 *** 2001* 2002* 2003* 2004 2005** 2006 2007 2008 2009 2010 -1 Q1-Q3 * According to German GAAP Cash provided by operating activities ** Cash provided by operating activities less capex (in 2005 before CTA) *** 2009 adjusted for re-classification of settlement payments for currency Free cash flow** derivatives BASF SRI Story January 2011 9

10. Delivering long-term value Long-term performance Jan 2001 – December 2010 Commitment to (average annual performance with dividends reinvested) shareholder value BASF total return well above benchmark levels +13.9% BASF Dividend increase of 12.8% p.a. (2001-2009) -2.7% Euro Stoxx 50 Attractive dividend yield of 3.9% in 2009, based on share +0.4 +0.7% DAX 30 price at year-end Dividend policy: +7.1% MSCI World Chemicals Increase dividend each year, or at least maintain it at the -5 0 5 10 15 previous year‘s level BASF SRI Story January 2011 10

11. Outlook: record year 2010 Targets 2010 We expect: the good business development to continue in the fourth quarter of 2010 sales of ~€ 63 billion and EBIT before special items of more than € 8 billion in 2010 to earn a high premium on our cost of capital to increase the dividend Medium-term targets We aim to grow sales on average by two percentage points per year above chemical market growth. We strive to grow our earnings further year by year and to achieve an EBITDA margin of 18% until 2012. Dividend policy We aim to continuously increase the annual dividend, or at least maintain it at the level of the previous year. BASF SRI Story January 2011 11

13. Clear targets to reduce emissions Global Goals 2020 (baseline 2002) Reduction of emissions to air of Greenhouse gases per metric ton of sales product - 25% Air pollutants - 70% Reduction of emissions to water of Organic substances - 80% Nitrogen - 80% Heavy metals - 60% BASF SRI Story January 2011 13

14. Solid track record – GHG emissions Important measures Energy efficiency: +86% Highly efficient power plants es using low-emission gas nv olum du ctio Energy-efficient processes Pro Logistics optimization Kyoto Absolu Installation of proprietary te GHG GHG emissio nitrous oxide decomposition ns emis catalysts sion -27% s pe r pro duct Use of waste flows as raw volu me -61% material for other production processes 1990* 2009 * Index = 100 BASF SRI Story January 2011 14

15. Emissions to water Reduction in emissions to water Most important measures Organic substances (in %) Water protection concepts to 2005 2006 2007 2008 2009 protect natural water reservoirs 2002 baseline Technical improvements in wastewater treatment plants, -51.7 e.g. in Nanjing, China -64.2 -65.9 2020 Goal -80% -77.5 -79.7 Improvements in methods such as neutralization, precipitation Heavy metals (in %) or flocculation 2005 2006 2007 2008 2009 2002 Structural changes baseline -26.2 -42.6 -44.3 2020 Goal -60% -55.9 -61.4 BASF SRI Story January 2011 15

16. Clear target to improve energy efficiency Global Goals 2020 (baseline 2002) Improve specific energy efficiency of production processes + 25% BASF‘s Verbund concept: Integration of production plants, energy and waste flows, logistics and site infrastructure In 2009, BASF generated 45% of its global steam requirements from waste heat Primary energy savings for BASF Group: 2.6 million toe/a equals almost USD 1 billion BASF SRI Story January 2011 16

17. Example: Energy Verbund in Antwerp Energy efficiency through the Verbund (Steam in average ton/h) Trough intelligent combination of production processes, the Steam consumption Steam production additional need for energy at our Antwerp site is minimal Total heat consuming chemical production processes Heat generating in 2009: chemical processes 1,000 ton/h steam Heat consuming Own energy Total heat producing chemical chemical processes power station production processes in 2009: 775 ton/h steam Additional energy supply by own energy power station: 225 ton/h steam -1000 -500 0 500 1000 BASF SRI Story January 2011 17

18. Clear targets for safety and product stewardship Global Goals 2020 Reduction in transportation accidents - 70% (baseline 2003) Reduction in lost time injury rate per million working hours (baseline 2002) - 80% Review of all products that are sold worldwide by BASF in quantities of more than 1 metric ton per year, based on a risk assessment >99% BASF SRI Story January 2011 18

19. Commitment beyond compliance Product stewardship We ensure that our products pose no danger to people or the environment when they are used responsibly and in the manner intended. Support of the ICCA Global Product Strategy (GPS), aiming to harmonize global safety standards First stage of REACH* registration now underway Estimated costs of €50 million annually until 2018 *REACH = Registration, Evaluation, Authorization and Restriction of Chemicals BASF SRI Story January 2011 19

20. Solid track record – Safety Transportation accidents per 10,000 shipments Most important measures (Goal 2020: -70%) xx Implementation of consistent standards and guidelines for transportation and storage of 0.56 -57% chemical products Continuous monitoring of transportation partners with regards to safety and quality in all regions 0.24 Joint safety initiatives with our service providers 2003 2005 2006 2007 2008 2009 2020 baseline Goal BASF SRI Story January 2011 20

21. Setting same standards worldwide BASF Verbund sites in Asia Study conducted by GTZ (German Technical Cooperation) shows that Nanjing site exceeds international standards in the area of health and safety and creates and secures local jobs Systematic safety training ensures a high safety standard of our own employees and our contractors Asian Verbund sites being served by state-of-the-art utilities, such as gas-fired power plants In 2009, BASF published first sustainability report in China with disclosure of emission data BASF SRI Story January 2011 21

23. Providing solutions for the challenges of the future Mobility & Construction & Health & Nutrition Energy & Climate Communication Housing 2 billion cars 60% of the world 8 billion people 40% more primary will drive on earth population will live will live on earth energy will be by 2030 in cities by 2030 by 2030 needed in 2030 How can we Which materials How can we How can we reduce are needed to ensure food and contribute to emissions and fuel make energy water supply for climate protection consumption ? consumption everyone? and energy more efficient? supply? BASF SRI Story January 2011 23

24. Solutions for more efficient cars Megatrend Mobility Innovative system supplier to the automotive industry Business case plastics BASF’s sales 2009* to the Terblend N® and Terluran® automotive industry: €5 billion for high-quality plastic components Ultramid® Sales of plastics to the UV cured coatings Astacin® leather for light-weight finishes high environmental compatibility, rapid motor parts environment-friendly automotive industry: coating processes approx. €1.4 billion Growth drivers Share of plastics in medium- sized cars expected to grow Catalysts from today’s ~15% to over 25% Neopolen® Lumogen® Black for purification of in 2020 driven by stricter and Sicopal ® Black Keropur® exhaust fumes for absorption of collision energy for heat reduction of Fuel additives and reduction of regulatory requirements dashboards help reduce air pollutants fuel consumption Global automotive market expected to grow by 5.0-7.5% p.a. mid-term *by first customer industry in 2009 BASF SRI Story January 2011 24

25. Solutions for more efficient cars Examples Light-weight plastics Eco-efficient coatings Three-way-catalysts (TWC) Value for the environment: Value for the environment: Value for the environment: Up to 50% weight reduction Savings of primary energy: Capable of destroying over Every 100 kg weight 15-20% in the production 90% of hydrocarbons, reduction cuts fuel process carbon monoxide and consumption by Reduction of VOC and CO2 nitrogen oxides produced 0.4 l/100 km and CO2 emissions: 15-20% in the by gasoline engines emissions by 1 kg/100 km production process BASF SRI Story January 2011 25

26. Solutions for more efficient housing Megatrend Construction & Housing Innovative system supplier to the construction industry Business case insulation BASF’s sales 2009* to the Lumogen®, Paliogen® construction industry: and Sicopal® COLO-FAST® black pigments for €3.8 billion for solar panel frames cool surfaces Micronal® PCM Sales of insulating foams to the Elastopor® H latent-heat for insulation of construction industry: storage system ceilings, roofs and walls approx. €1 billion in 2009 Neopor® and Rheocell® for heat insulation HECK® MultiTherm Growth drivers systems for Walltite® insulation of walls Sprayfoam for (inside and outside) Market potential of innovative insulation of walls refurbishing of more than Styrodur® C X-SEED® €400 billion in Germany for insulation of concrete hardener walls and floors alone Market growth for insulating foams expected to outpace construction industry growth *by first customer industry in 2009 BASF SRI Story January 2011 26

27. Solutions for more efficient housing Examples Insulation materials Pigments for solar heat Concrete admixtures management Value for the environment: Value for the environment: Value for the environment: Savings of up to 50% of Solar heat buildup of dark 5% of global CO2 heating oil equivalents construction elements cut emissions attributable Savings through product by 50% to cement production sold in 2008 for old Reduced need for cooling Savings through super- buildings: 208 million t CO2 and air conditioning plasticizers sold in 2008: equivalents 22 million t CO2 equivalents BASF SRI Story January 2011 27

28. Solutions for future nutrition Megatrend Health & Nutrition Business case Plant Biotechnology Agricultural production to double in next 20-30 years, food for 8 billion people needed in 2030 Use of grain for fuel growing by ~ 20% per year Estimated market value in 2025: $50 billion BASF pipeline value €1.9 billion* Value for the environment and society: Improvement of global food supply in terms of quality and quantity Conservation tillage, reduction of soil erosion Improvement of land-use efficiency and better use of available water *Expected gross trait sales before partner share in 2020 BASF SRI Story January 2011 28

29. Solutions for sustainable use of water Megatrend Health & Nutrition Business case water Global water consumption will almost double by 2025 Major challenges: water scarcity, water quality Filter membrane made of Ultrason® The filter membrane provides ultra filtration and removes viruses as well as bacteria from dirty surface water It is portable and able to purify at least 18,000 liters of water reliably without the need for batteries Trilon® M A dishwashing tab based on Trilon® M produces 80% less wastewater load compared with phosphate- based formulations Trilon® M has a market potential of €300 million BASF SRI Story January 2011 29

30. Solutions for climate protection Megatrend Energy & Climate BASF’s corporate carbon footprint Climate protection products Savings: already account for 10% of 287 million t/a BASF’s sales Total savings of CO2 emissions through use of Results: BASF products BASF products save three over the lifecycle times more GHG emissions Housing 248 than are released in the Automobile 14 production and disposal of all Industry 13 products Agriculture Additional Products 6 6 3 : 1 BASF wants to maintain or even improve this factor of 3:1 thereof 27 million t/a from BASF Emissions for raw in the long term materials, production and disposal of all BASF products Savings of CO2 equivalents 90 million t/a Emissions of CO2 equivalents BASF SRI Story January 2011 30

32. Competition for the best employees Global Goals 2020 Increase the proportion of non- German senior executives worldwide Increase the proportion of female senior executives Proportion of senior executives with international experience >70% Mandatory leadership feedback for senior executives worldwide 80% BASF SRI Story January 2011 32

33. Our employees – key to our success Taking responsibility for our employees More than 86,000 employees participated in training programs worldwide in 2009 2,401 apprentices in over 50 occupations in 2009 Competitive advantages through diversity: Diversity + Inclusion initiative to recruit and support employees with different cultural backgrounds, experiences and ways of thinking Addressing demographic change with the Generations@Work program Balancing career and family: 488 BASF SE employees on parental leave in 2009 (thereof 5.3% fathers) BASF SRI Story January 2011 33

34. Creating value through social commitment Taking responsibility for our communities Supporting education and science: Kids’ Labs in 15 countries, Knowledge Factory reaching 120,000 children, “Action on Education” initiative International donations of more than €48 million in 2009 Combining business sense with social needs Grameen Social Business: giving people in Bangladesh access to better healthcare and provide them with entrepreneurial opportunities Samruddhi business model: coaching soybean farmers to help them select the best agricultural practices BASF SRI Story January 2011 34

35. BASF’s engagement for sustainability is highly recognized Member 2010 Constituent of ECPI Ethical Index €uro ASPI Eurozone Leader in Materials sector Member from the start Leader in Chemicals sector BASF SRI Story January 2011 35

36. BASF – a sustainable investment Delivering long-term sustainable returns Operating to minimize environmental impact and maximize energy efficiency Providing solutions for global challenges in housing, mobility, energy and nutrition Adding to the opportunities and well-being of our employees and the communities in which we operate BASF SRI Story January 2011 36

37. Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about 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 with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and BASF does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. 37

38. BASF SRI Story January 2011 38

BASF - A sustainable investment

BASF - A sustainable investment

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