October 2012                                          We add value as one companyBASF Capital Market Story__October 2012
Forward-looking statementsThis presentation includes forward-looking statements that are subject to risks anduncertainties...
BASF today – The Chemical CompanyFacts & figures The leading chemical company worldwide         - Sales 2011: €73.5 billi...
BASF today – a well-balanced portfolioTotal sales 2011: €73.5 billionPercentage of sales 2011*                            ...
Business review        BASF Today        Trends         Business review        Purpose and strategic principles        Tar...
BASF maintains good businessperformance in Q3 2012Business performance                                  Q3’12             ...
Strong free cash flow generationFree cash flow*in billion €                                                               ...
Delivering attractive shareholder returnsDividend per share                                                               ...
Delivering consistent, long-term valueAverage annual performancewith dividends reinvested                                 ...
Outlook 2012 confirmedOutlook 2012 For the FY 2012, BASF aims to exceed the record levels of sales and EBIT before specia...
Business review        BASF Today        Trends         Business review        Purpose and strategic principles        Tar...
Demographic challenges… set the stage for the future of the chemical industryNine billion people in 2050 but only one eart...
Key trends for the chemical industryGrowth                                    Innovation gains      Sustainability        ...
Striving for strong profitable growthMedium- and long-term sales target*Sales**in billion €                               ...
Striving for strong profitable growthAll regions will deliver profitable growthRegional sales targets 2020* (by location o...
Striving for strong profitable growthSales share of emerging markets to keep growingSales BASF Group excluding Oil & Gasin...
Striving for strong profitable growthDoubling EBITDA by 2020*EBITDA**in billion €                                         ...
Business review        BASF Today         Business review        Trends         BASF strategy & growth targets        Purp...
Portfolio developmentWe expand from chemicals to chemistry       1960            1970               1980   1990       2000...
Portfolio developmentTowards more market driven and innovative businesses         Acquisitions                          BA...
Portfolio developmentMoving downstream towards customer industries                                                        ...
Market approachCross-divisional customer industry approach     BASF sales by first                   Bubble Size: BASF div...
Cross-divisional approach: ‘Smartforvision’Technology competencies combined with customer know-howLightweight tridion cell...
Cross-divisional approachBiopolymer for enhanced oil recoveryPotential Increased incremental oil recovery of up to 10% on...
Cross-divisional approachecovio biodegradable plastic in paper applicationsBusiness potential 2020 Market size: opportuni...
Innovations for a sustainable futureCommitment to R&DTotal R&D expenditures 2011                                          ...
Innovations for a sustainable futureChemistry as an enabler for many customer industriesCustomerindustries                ...
Innovations for a sustainable futureBASF growth field examples                                          Batteries for mobi...
Investments… will boost future organic growthFuture investmentsin € billlion                                              ...
InvestmentsMajor projects                  MDI plant Chongqing,        Expansion Verbund site              Expansion joint...
Acquisitions… will contribute to profitable growth in the futureWe want to acquire businesses which … Generate profitable...
Operational excellenceStrong track recordBASF Group 2002–2011                                           CAGR 2002 – 2011In...
Operational excellenceNew program STEP: Earnings contribution ~€1 billionAnnual earnings contribution                     ...
Business review        BASF Today        Trends         Business review        Purpose and strategic principles        Tar...
Key financial targets 2015 / 2020                                          Growth targets         Profitability targets   ...
Appendix          Business development Q3 2012BASF Capital Market Story__October 2012
ChemicalsDeclining margins and plant shutdownsQ3’12 segment sales (million €) vs. Q3’11                           EBIT bef...
PlasticsSignificantly weaker margins for polyamide precursorsQ3’12 segment sales (million €) vs. Q3’11                    ...
Performance ProductsCompetitive market environment and higher fixed costsQ3’12 segment sales (million €) vs. Q3’11        ...
Functional SolutionsLower volumes and prices in precious metal tradingQ3’12 segment sales (million €) vs. Q3’11           ...
Agricultural SolutionsSuccessful start of season in South AmericaQ3’12 segment sales (million €) vs. Q3’11                ...
Oil & GasIncreased oil production in LibyaQ3’12 segment sales (million €) vs. Q3’11                  EBIT bSI/Net income (...
Review of “Other”Million €                                          Q3 2012   Q3 2011Sales                                ...
Strong operating cash flow of €5.2 billion                                                                        Jan - Se...
AppendixBASF Capital Market Story__October 2012
Our purposeWe create chemistryfor a sustainable future.BASF Capital Market Story__October 2012   46
Our strategic principles                            We add value          We drive                            as one compa...
BASF Capital Market Story__October 2012   48
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BASF capital market story 10/2012

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The BASF Capital Market Story gives you an overview on BASF's historic performance and our portfolio, highlighting our strength in operational excellence.

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BASF capital market story 10/2012

  1. 1. October 2012 We add value as one companyBASF Capital Market Story__October 2012
  2. 2. Forward-looking statementsThis presentation includes forward-looking statements that are subject to risks anduncertainties, including those pertaining to the anticipated benefits to be realized from theproposals described herein. This presentation contains a number of forward-lookingstatements including, in particular, statements about future events, future financialperformance, plans, strategies, expectations, prospects, competitive environment,regulation and supply and demand. BASF has based these forward-looking statements onits views with respect to future events and financial performance. Actual financialperformance of the entities described herein 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.Forward-looking statements represent estimates and assumptions only as of the date thatthey were made. The information contained in this presentation is subject to change withoutnotice 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 byapplicable laws and regulations.BASF Capital Market Story__October 2012 2
  3. 3. BASF today – The Chemical CompanyFacts & figures The leading chemical company worldwide - Sales 2011: €73.5 billion - EBIT before special items 2011: €8.4 billion - ~111,000 employees Customers in >200 countries and in virtually all industries # 1-3 market position in over 75% of businesses Unique Verbund concept for integrated production - Six Verbund sites in all major regions - Production sites in 41 countries International, interdisciplinary R&D network - More than 10,000 employees in R&D Highly experienced management team - Senior executives from 36 countriesBASF Capital Market Story__October 2012 3
  4. 4. BASF today – a well-balanced portfolioTotal sales 2011: €73.5 billionPercentage of sales 2011* Chemicals Plastics  Inorganics  Performance Polymers  Petrochemicals  Polyurethanes  Intermediates Performance Products Functional Solutions  Dispersions & Pigments  Catalysts  Performance Chemicals  Construction Chemicals  Care Chemicals  Coatings  Nutrition & Health  Paper Chemicals Agricultural Solutions Oil & Gas  Crop Protection  Exploration & Production and Natural Gas TradingBASF Capital Market Story__October 2012 * not depicted here: 9% of Group sales reported as ‘Other‘ 4
  5. 5. Business review BASF Today Trends Business review Purpose and strategic principles Targetsstrategy & growth targets BASF Strategic levers Strategic levers BASF Tomorrow – Board priorities Fit for 2020BASF Capital Market Story__October 2012 BASF Strategy: We create chemistry__November 2011
  6. 6. BASF maintains good businessperformance in Q3 2012Business performance Q3’12 vs. Q3’11 Sales €19.0 billion +8% EBITDA €2.8 billion +4% EBIT before special items €2.1 billion +5% EBIT €2.0 billion +6% Net income €0.9 billion (21%) EPS €1.03 (21%) Adjusted EPS €1.19 (22%)Sales developmentPeriod Volumes Prices Portfolio CurrenciesQ3’12 vs. Q3’11  7%  (4%)  (1)%  6% Favorable business development in Agricultural Solutions and Oil & Gas Earnings in chemical activities did not match the previous year’s levelBASF Capital Market Story__October 2012 6
  7. 7. Strong free cash flow generationFree cash flow*in billion € 3.9 3.7 3.3 3.5 3.2 3.2 2.8 2.6 2.5 2.4 -0.1 2002 2003 2004 2005 2006 2007 2008 2009** 2010 2011 Q1-Q3 2012 * Cash provided by operating activities less capex (in 2005 before CTA)BASF Capital Market Story__October 2012 ** 2009 adjusted for re-classification of settlement payments for currency derivatives 7
  8. 8. Delivering attractive shareholder returnsDividend per share Dividend paymentsin €  €2.50 dividend per share for 2.50 2011, dividend yield 4.6%* 2.20  15% average annual dividend 1.95 1.95 increase for 2002-2011 period 1.70 1.50  Dividend yield above 3% in any given year since 2002, 1.00 total payout €14.5 billion 0.85 0.70 0.70 Share buy-backs  Between 1999 & 2008, BASF bought back 28.65% of shares 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 outstanding, spent €9.9 billion Dividend yield*  AGM 2012 approved new share buy-back program; 3.9% 3.1% 3.2% 3.1% 4.1% 3.8% 7.0% 3.9% 3.7% 4.6% up to 10% of shares, 5 years* Dividend yield based on share price at year-endBASF Capital Market Story__October 2012 8
  9. 9. Delivering consistent, long-term valueAverage annual performancewith dividends reinvested Last 10 years Last 5 years October 2002 – September 2012 October 2007 – September 2012 +18.3% BASF + 11.0% +4.1% Euro Stoxx 50 -7.8% +10.0% DAX 30 -1.7% +10.6% MSCI World Chemicals +1.4%0 5 10 15 20BASF Capital Market Story__October 2012 9
  10. 10. Outlook 2012 confirmedOutlook 2012 For the FY 2012, BASF aims to exceed the record levels of sales and EBIT before special items achieved in 2011 BASF will strive again to earn a high premium on cost of capital Chemical activities - We do not expect demand to pick up in the fourth quarter 2012 - Therefore, 2012 EBIT before special items of chemical activities will come in below the level of the previous year.Assumptions 2012 GDP: +2.2% (before: 2.3%) Industrial production: +2.8% (before: 3.4%) Chemical production: +2.9% (before: 3.5%) US$/Euro: 1.30 (unchanged) Oil price (US$/bbl): 110 (unchanged)BASF Capital Market Story__October 2012 10
  11. 11. Business review BASF Today Trends Business review Purpose and strategic principles Targetsstrategy & growth targets BASF Strategic levers Strategic levers BASF Tomorrow – Board priorities Fit for 2020BASF Capital Market Story__October 2012 BASF Strategy: We create chemistry__November 2011
  12. 12. Demographic challenges… set the stage for the future of the chemical industryNine billion people in 2050 but only one earth Resources, Environment Food & Nutrition Quality of Life & Climate Chemistry as enablerBASF Capital Market Story__October 2012 12
  13. 13. Key trends for the chemical industryGrowth Innovation gains Sustainability Competitivewill accelerate in importance as strategic driver landscape will change Industrial  Chemistry as  Use opportunities  Integrated chemical production > GDP enabler from sustainability companies remain cornerstone Chemical  Chemical  Increase resource production > GDP products replace efficiency  Emerging markets traditional players grow quickly Emerging markets materials  Renewables as will outgrow raw materials  Raw material players developed  Create innovative invest further markets sustainable  Stakeholder dialog downstream solutions Chemical industry remains an attractive growth industryBASF Capital Market Story__October 2012 13
  14. 14. Striving for strong profitable growthMedium- and long-term sales target*Sales**in billion € Acquisitions ~115 Innovations Investments Acquisitions ~85 Innovations 64 Investments 2010 Target Target 2015 2020 We aim to grow 6 percent p.a.; 2 percentage points above chemical production outperform chemical production by on November 29, 2011 * PublishedBASF Capital Market Story__October 2012 ** Potential impact of IFRS changes not included 14
  15. 15. Striving for strong profitable growthAll regions will deliver profitable growthRegional sales targets 2020* (by location of customers)in billion € Europe North America ~4.5% p.a. ~53 ~5.5% p.a. ~22 33 13 20%** 19%** 2010 2020 52%** 46%** Asia Pacific 2010 2020 ~8% p.a. South America, Africa, Middle East ~29 ~8% p.a. 13 ~11 5 20%** 25%** 8%** 10%** 2010 2020 2010 2020 * Published on November 29, 2011BASF Capital Market Story__October 2012 ** Percentage of total sales 15
  16. 16. Striving for strong profitable growthSales share of emerging markets to keep growingSales BASF Group excluding Oil & Gasin billion € by location of customer 45% Emerging markets 61 34% Developed markets* * BASF definition: Developed markets 28 include EU15, Norway, Switzerland, 22% North America, Japan, Australia, New Zealand Target 2020: ~45% sales share of Emerging MarketsBASF Capital Market Story__October 2012 16
  17. 17. Striving for strong profitable growthDoubling EBITDA by 2020*EBITDA**in billion € ~23 Acquisitions Op. Excellence Growth Acquisitions ~15 Op. Excellence 11.1 Growth 2010 Target Target 2015 2020 * Published on November 29, 2011BASF Capital Market Story__October 2012 ** Assumptions 2010-2020: Exchange rate $/€ Ø 1.40, Oil price Ø $110/bbl 17
  18. 18. Business review BASF Today Business review Trends BASF strategy & growth targets Purpose and strategic principles Targets levers Strategic Strategic levers – Portfolio development – Market approach BASF Tomorrow – Board priorities – Innovations for a sustainable future – Investments – Acquisitions – Operational excellence Fit for 2020BASF Capital Market Story__October 2012 BASF Strategy: We create chemistry__November 2011
  19. 19. Portfolio developmentWe expand from chemicals to chemistry 1960 1970 1980 1990 2000 2010 2020  Chemistry as key enabler New for functionalized materials molecules & solutions Improved  Deep understanding of applications customer value chains required Functionalized materials & solutions Batteries, membranes ...BASF Capital Market Story__October 2012 19
  20. 20. Portfolio developmentTowards more market driven and innovative businesses Acquisitions BASF Divestitures core business  Crop protection  Pharma Selected transactions  Engineering plastics 2001 − today  Fibers  Electronic chemicals  Printing systems  Custom synthesis  Polyolefins  Catalysts Strong partnerships  Polystyrene Americas  Construction chemicals  Agro generics  Water-based resins  Gazprom  Vitamins premix  Pigments  Monsanto  Fertilizers  Plastic additives  Petronas  Styrenics (transferred into Styrolution JV on Oct. 1, 2011)  Oil & Gas  Shell  Personal care & food  Sinopec  Battery materials  Total ~ €15bn sales ~ €10bn sales* * without StyrenicsBASF Capital Market Story__October 2012 20
  21. 21. Portfolio developmentMoving downstream towards customer industries Functionalized Materials Classical Chemicals Customized Products & Solutions First customer Chemical Industry industries*2001in % of ~ 50% ~ 50%sales**2010in % of ~ 40% ~ 60%sales**2020in % of ~ 30% ~ 70%sales*** Agriculture, Construction, Consumer Goods, Health & Nutrition, Electronics, Energy & Resources, Transportation** Sales excluding Oil & GasBASF Capital Market Story__October 2012 21
  22. 22. Market approachCross-divisional customer industry approach BASF sales by first Bubble Size: BASF divisional sales by first customer industry (2010)** customer industry* Consumer goods > 15 % Transportation > 15 % Construction < 10 % Energy & Resources < 10 % Inorganics Petro- Construction Dispersions Performance Poly- chemicals Chemicals & Pigments Chemicals urethanes Care Paper Performance Catalysts Intermediates Coatings Chemicals Chemicals Polymers* Excluding Oil & Gas and Other** Excluding Agricultural Solutions, Health & Nutrition, Oil & Gas and OtherBASF Capital Market Story__October 2012 22
  23. 23. Cross-divisional approach: ‘Smartforvision’Technology competencies combined with customer know-howLightweight tridion cell Solar roof with transparent organic solar panels and OLED modulesHigh performance foams E-textilesInfrared-reflective film Multifunctional seatInfrared-reflectivecoating All-plastic wheel Daimler & BASF concept car ‘Smartforvison’BASF Capital Market Story__October 2012 23
  24. 24. Cross-divisional approachBiopolymer for enhanced oil recoveryPotential Increased incremental oil recovery of up to 10% on Schizophyllum waterflooding. Sales potential to be defined after commune completion of trialsApproach Leverage BASF’s Verbund knowhow in white biotechnology for Oil & Gas production Proprietary biopolymer from Schizophyllum fungus allows for enhanced oil recovery due to its high viscosifying efficiency Schizophyllan biopolymer Biopolymer is stable in high temperature and high salinity reservoirsCurrent activities Schizophyllan biopolymer to be produced at BASF Ludwigshafen via fermentation. First trial in mature Wintershall oil field starting in 2012 (Bockstedt, Germany)BASF Capital Market Story__October 2012 24
  25. 25. Cross-divisional approachecovio biodegradable plastic in paper applicationsBusiness potential 2020 Market size: opportunity to substitute > 200 kt of various products Sales potential for BASF: ~€40 million (ecovio FS Paper for extrusion coating) Additional business opportunities in wet-end applications under evaluationConcept Leverage BASF know-how on biodegradable plastics and paper chemicals to offer sustainable solutions for packaging and foodservice wareCurrent activities ecovio FS Paper launched in various markets since 2010 Business Model for sustainable „Closed System“ throughout whole value chain (incl. waste management) R&D-projects for additional applications and solutionsBASF Capital Market Story__October 2012 25
  26. 26. Innovations for a sustainable futureCommitment to R&DTotal R&D expenditures 2011 Strong commitment to R&Din billion €  €1.6 billion R&D expendituresChemicals Corporate Research in 2011 (2010: €1.5 billion)8% 23%  ~10,100 employees in R&DPlastics  ~2,800 projects9% 24% Oil & Gas €1.6  Research Verbund:Performance 1%Products billion About 1,950 partnerships21% 1% with universities, start-ups and industry partnersFunctional AgriculturalSolutions Solutions  Increase of R&D spending to12% 26% €1.7 billion planned for 2012 Target: €30 billion in sales from innovations younger than 10 yearsBASF Capital Market Story__October 2012 26
  27. 27. Innovations for a sustainable futureChemistry as an enabler for many customer industriesCustomerindustries Consumer Health & Energy & Transportation Construction Electronics Agriculture Goods Nutrition Resources Batteries for Heat Enzymes Medical Organic Plant Energy mobility management electronics biotechnology management Lightweight Functional Rare earth Growth composites crop care metals Fields* recycling Heat management Wind energy Water solutions Ongoing inflow of new growth fields Sustainability in customer industries will drive our innovative growth fields * Including growth fields still under evaluation BASF Capital Market Story__October 2012 27
  28. 28. Innovations for a sustainable futureBASF growth field examples Batteries for mobility Water solutions Plant biotechnology Growth Field examples Business  Market size:  Market size:  Market size: potential >€20 billion ~€20 billion ~€11 billion gross trait value 2020*  BASF sales potential:  BASF sales potential:  BASF sales potential: €1.8 billion >€500 million >€800 million gross trait sales before partner share Existing  New global business unit for  BASF expertise and portfolio  BASF as Trait Technology Partner Activities battery chemicals & materials (high-performance flocculants, of leading trait and seed  Electrode material plant being desalination and antifouling companies built in Ohio. Acquired Novolyte, chemicals….)  Yield & Stress collaboration with Merck’s electrolytes, Ovonik,  Acquired inge water-technologies; Monsanto (corn, soy, cotton, equity position in Sion Power membrane module systems canola and wheat)  R&D network with academia  Invested into NanoH2O  Sites in US, China, Europe Targets  Become the leading supplier of  Leading supplier of innovative  Contribute to more efficient battery materials water solutions agriculture, healthier nutrition  Target customers: Battery  Forward integration into  Make Plant Biotechnology an producers membrane technologies operating division within the Agricultural Solutions segmentBASF Capital Market Story__October 2012 * Published on November 29, 2011 28
  29. 29. Investments… will boost future organic growthFuture investmentsin € billlion 15-20 ~15 10.9 35-45% 30-40% ~20% 2006 – 2010 2011 – 2015 2016 – 2020 Total investments Thereof investments in emerging marketsBASF Capital Market Story__October 2012 29
  30. 30. InvestmentsMajor projects MDI plant Chongqing, Expansion Verbund site Expansion joint venture China Nanjing, China* activities in Malaysia Acrylic acid complex, Expansion oil & gas TDI plant Ludwigshafen, Brazil activities GermanyBASF Capital Market Story__October 2012 * Memorandum of Understanding signed 30
  31. 31. Acquisitions… will contribute to profitable growth in the futureWe want to acquire businesses which … Generate profitable growth  Provide a minimum return on above the industry average investment of 8% after tax Are innovation-driven  Are EPS accretive by year three at the latest Offer a special value proposition to customers Reduce earnings cyclicality Strategic acquisition criteria Financial acquisition criteriaBASF Capital Market Story__October 2012 31
  32. 32. Operational excellenceStrong track recordBASF Group 2002–2011 CAGR 2002 – 2011Index300 10 % EBITDA 10 % Sales250 4% Fixed costs200150100 50 2002 2005 2008 2011BASF Capital Market Story__October 2012 32
  33. 33. Operational excellenceNew program STEP: Earnings contribution ~€1 billionAnnual earnings contribution NEXT Programin € million  Annual earnings contribution of €1 billion will be achieved in 2012  Achieved by end 2011: >€ 800 million3,000 STrategic Excellence Program ‘STEP’  Project timeline: 2012–20152,000  Measures to optimize processes and structures in all regions, e.g. − manufacturing, maintenance1,000 − supply chain − engineering, best-cost country sourcing  Fixed cost savings and margin 0 improvements 2012 2015  One-time costs & investments: ~€1 billion Former cost  Targeted annual earnings contribution: NEXT STEP saving programs ~€1 billion by end of 2015, thereof €100 million in 2012 (run-rate)BASF Capital Market Story__October 2012 33
  34. 34. Business review BASF Today Trends Business review Purpose and strategic principles Targetsstrategy & growth targets BASF Strategic levers Strategic levers BASF Tomorrow – Board priorities Fit for 2020BASF Capital Market Story__October 2012 BASF Strategy: We create chemistry__November 2011
  35. 35. Key financial targets 2015 / 2020 Growth targets Profitability targets  Grow at least 2 percentage  Earn a premium on cost of points above chemical capital of at least €2.5 billion on production average p.a.  Sales ~€85 billion  EBITDA ~€15 billion 2015  EPS ~€7.50  Sales ~€115 billion  Double EBITDA to ~€23 billion 2020 (compared with 2010)BASF Capital Market Story__October 2012 35
  36. 36. Appendix Business development Q3 2012BASF Capital Market Story__October 2012
  37. 37. ChemicalsDeclining margins and plant shutdownsQ3’12 segment sales (million €) vs. Q3’11 EBIT before special items (million €)Intermediates Inorganics 485 +36% 800767+14% 621 600 467 436 459 €3,556 381 +12% 400 200 Petrochemicals 2,304 0 +8% Q3 Q4 Q1 Q2 Q3 2011 2012Sales development Period Volumes Prices Portfolio Currencies Q3’12 vs. Q3’11  4%  (9%)  10%  7%BASF Capital Market Story__October 2012 37
  38. 38. PlasticsSignificantly weaker margins for polyamide precursorsQ3’12 segment sales (million €) vs. Q3’11 EBIT before special items (million €)Polyurethanes 4001,655 317+12% 256 €2,969 219 218 200 +6% 110 Performance Polymers 0 1,314 Q3 Q4 Q1 Q2 Q3 (1%) 2011 2012Sales developmentPeriod Volumes Prices Portfolio CurrenciesQ3’12 vs. Q3’11 0%  (1%)  1%  6%BASF Capital Market Story__October 2012 38
  39. 39. Performance ProductsCompetitive market environment and higher fixed costsQ3’12 segment sales (million €) vs. Q3’11 EBIT before special items (million €)Care Chemicals Performance 6001,233 Chemicals(3%) 933 440 452 446 +3% 400 347Nutrition €4,015& Health +1% 220492 200+4% DispersionsPaper Chemicals & Pigments 0 947 Q3 Q4 Q1 Q2 Q3410(3%) +2% 2011 2012Sales developmentPeriod Volumes Prices Portfolio CurrenciesQ3’12 vs. Q3’11  (2%)  (2%) 0%  5%BASF Capital Market Story__October 2012 39
  40. 40. Functional SolutionsLower volumes and prices in precious metal tradingQ3’12 segment sales (million €) vs. Q3’11 EBIT before special items (million €)Catalysts Construction 2001,446 Chemicals 162(10%) 634 148 138 150 134 +6% €2,847 88 100 -2% 50 Coatings 0 767 Q3 Q4 Q1 Q2 Q3 +10% 2011 2012Sales developmentPeriod Volumes Prices Portfolio CurrenciesQ3’12 vs. Q3’11  (5%)  (5%)  2%  6%BASF Capital Market Story__October 2012 40
  41. 41. Agricultural SolutionsSuccessful start of season in South AmericaQ3’12 segment sales (million €) vs. Q3’11 EBIT before special items (million €) 200 1711.000 908 1,008 150 95 100 500 50 0 0 Q3 Q3 Q3 Q3 2011 2012 2011 2012Sales developmentPeriod Volumes Prices Portfolio CurrenciesQ3’12 vs. Q3’11  3% 0% 0%  8%BASF Capital Market Story__October 2012 41
  42. 42. Oil & GasIncreased oil production in LibyaQ3’12 segment sales (million €) vs. Q3’11 EBIT bSI/Net income (million €)Exploration & 1,068 1,000Production 8001,360+155% 600 €3,372 400 350 971 +54% 200 227 225 322 Natural Gas 123 97 0 Trading Q3/2011 Q3/2012 2,012 +21% Exploration & Production Non compensable oil taxes (Q3 2011: €0 million; Q3 2012: €492 million) Natural Gas Trading Net incomeSales developmentPeriod Volumes Prices/Currencies PortfolioQ3’12 vs. Q3’11  60%  (5%)  (1%)BASF Capital Market Story__October 2012 42
  43. 43. Review of “Other”Million € Q3 2012 Q3 2011Sales 1,243 1,637thereof Styrenics - 739EBIT before special items (331) (21)thereof Corporate research (92) (86) Group corporate costs (63) (58) Currency results, hedges and other (247) 104 valuation effects Styrenics, fertilizers, other businesses 31 82Special items (45) (33)EBIT (376) (54)BASF Capital Market Story__October 2012 43
  44. 44. Strong operating cash flow of €5.2 billion Jan - Sep Jan - SepMillion € 2012 2011Cash provided by operating activities 5,156 5,028thereof Changes in net working capital (667) (1,337)Cash used in investing activities (2,081) (957)thereof Payments related to tangible / intangible assets (2,780) (2,101)thereof Acquisitions / divestitures 411 (22)Cash used in financing activities (3,395) (4,105)thereof Changes in financial liabilities (797) (1,727) Dividends (2,593) (2,378)Free cash flow 2,376 2,927Third quarter 2012 Operating cash flow: €1.7 billion Free cash flow: €0.6 billion Capex: €1.1 billion Net debt decreased by €0.6 billion to €11.0 billion in comparison to YTD 2011BASF Capital Market Story__October 2012 44
  45. 45. AppendixBASF Capital Market Story__October 2012
  46. 46. Our purposeWe create chemistryfor a sustainable future.BASF Capital Market Story__October 2012 46
  47. 47. Our strategic principles We add value We drive as one company. sustainable solutions. We innovate to make We form our customers more the best team. successful.BASF Capital Market Story__October 2012 47
  48. 48. BASF Capital Market Story__October 2012 48

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