1. From Science to Innovation –
How Chemistry Contributes to Health Solutions
BASF Research Press Conference on March 29, 2012

2. Moving BASF to the next level –
The importance of innovation
Dr. Andreas Kreimeyer
BASF SE
Member of the Board of Executive Directors
Research Executive Director

3. BASF today – the leading chemical company
3
 No. 1 – 3 market positions in over 75% of businesses
 Active management of portfolio towards higher returns and less cyclicality
 Focus on innovative products and solutions
 Operational excellence with unique Verbund concept
 Strong earnings power, high cash flow generation and a strong financial profile
 Generation of long-term attractive shareholder returns

4. Demographic challenges set the stage
for the future of the chemical industry
4
60% of
chemical production
in emerging countries
Sustainability
and innovation
as main driver
Innovation focus
on materials
and solutions
Growth of
chemical production
above GDP
Chemistry as enabler
Nine billion people in 2050 but only one earth
Resources,
Environment & Climate
Food & Nutrition Quality of Life

5. BASF’s “We create chemistry” Strategy
puts focus on sustainable innovations
5
 Expansion of Functionalized Materials & Solutions
 Technology and operational excellence in all businesses and regions
 Additional value from industry groups and cross-disciplinary innovation
 Internationalization of organization according to market needs
 Growth drivers: sustainability, innovation and investments

6. Innovation at BASF
R&D 2011 at a Glance
6
 10,100 R&D employees
 Around 2,800 projects
 Expenditures for R&D circa €1.61 billion,
world leader in chemical industry
 Since 2005 increase
of R&D expenditures up to 50%
 Annual sales from product innovations*
in 2011: €8 billion
23%
26%
12%
21%
9% 8%
Plastics
Functional
Solutions
Performance
Products
Chemicals
Agricultural
Solutions
Oil & Gas
Corporate Research
ca.
€ 1.61
billion
1%
Research for the future: with our innovative products and processes,
we provide sustainable solutions for global challenges.
* New or improved products or applications, max 5 years on market

7. BASF has the strongest patent portfolio
in the chemical industry
7
 Measures strength of a company’s
patent portfolio in global markets
 Takes into account relevance of patents
(normalized number of citations)
 Factors in market size covered by
individual inventions (expressed by
Gross National Income)
Quelle: PatentSight. Methode: Prof. Ernst, WHU (Ernst H.;
Omland N.; World Patent Information 33 (2011) 34 - 41)
Patent Asset IndexTM
Competitive
Impact
Market
Coverage
Technology
Relevance
Number of worldwide
citations of a patent
in other patents
Extent of patent
protection in
global markets
Contribution
to competitive
advantage
Portfolio
Size
Number of
worldwide active
patent families
100%
75%
65% 63%
30%
BASF Bayer DuPont Dow
Chemical
Evonik

8. Xemium® Ultradur® B4520 PRO
Ecovio® FS Paper Cetiol® RLF PeroXeal™
iGloss®
MEYCO® Minefill Natuphos® Combi
Tinuvin®
New BASF products
8

9. BASF Interdisciplinary Know-How-Verbund
Examples from our cooperation network
9
Working with the best partners in science & industry
Jonas: Strasbourg,
Freiburg, Zurich
unicat Berlin
smart forvision
Innovate in multi-materials
and systems
BASF’s and Daimler’s ideas
for holistic electric mobility
New catalytic processes
for raw material change

10. Three pillars of our new innovation set-up
to make R&D more effective and efficient
10
From Chemicals
to Chemistry
Solutions
for a sustainable future
Globalization pays off
R&D focus on high future business potential areas
for sustainable solutions – close to our customers worldwide

11. From Chemicals to Chemistry
Shift of Innovation Focus
11
 Chemistry as key enabler
for functionalized materials
& solutions
 Deep understanding of
customer value chains required
New
molecules
Improved
applications
Functionalized
materials &
solutions
1960 1970 1980 1990 2000 2010 2020
Batteries, membranes...
From chemicals to chemistry

12. BASF Global Know-How-Verbund
12
International and
interdisciplinary
R&D network
 4 Technology platforms
 External partnerships
with industry and science
 R&D Verbund
with 1,950 cooperations
Science Relations and Innovation Management
BASF Future Business
BASF
Research
Verbund
Biological
& Effect
Systems
Process Research &
Chem. Engineering
Advanced
Materials
& Systems
Plant Science
Universities
Partners
in industry
Research
institutions
High-tech
joint ventures

13. 13
We create chemistry