BASF Analyst Conference Q2 2011

BASF posts strong results

Second Quarter 2011
Financial highlights
July 28, 2011

BASF 2nd Quarter 2011 Analyst Conference Call 1

Forward-looking statements

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.


BASF posts strong results
Second quarter 2011 highlights

Business performance Q2’11 vs. Q2’10
Sales €18.5 billion +14%
EBITDA €3.0 billion +5%
EBITDA margin 16.3% 17.7%
EBIT before special items (bSI) €2.2 billion +1%
EBIT bSI adjusted for non-comp. oil taxes €2.2 billion +12%
EBIT €2.2 billion +7%
Net income €1.5 billion +23%
EPS €1.59 +23%
Adjusted EPS €1.75 +17%

Robust sales and earnings growth in the chemicals business with volumes up 5%
Excellent performance of the acquired former Cognis business
Earnings in Agricultural Solutions increased despite adverse weather conditions
Sales growth in Oil & Gas was price driven. Net income rose by 74%

Important milestones in Q2 2011

Styrolution New TDI plant in Europe

Joint venture of BASF and INEOS to form TDI is a key component for polyurethane
the global market leader in styrenics foams with growth rates above GDP
Joint venture contract signed BASF to expand its leading position in TDI
FTC and EU antitrust approval received with a new 300kt/a plant in Europe

Closing subject to remaining approvals from The world‘s largest single-train TDI plant
antitrust authorities in other countries Superior technology and unique Verbund
Closing of joint venture expected in Q4 2011 concept provide industry leading cost
structure
Start-up of production in 2014


Focus on future markets
BASF intensifying R&D around electromobility

Market trends
Sustainable electromobility is key to climate friendly mobility
High-performance batteries and innovative solutions for weight
reduction and heat management are essential for efficient
electromobility

BASF activities
Investment of three-digit million euro sum over the next five
years for R&D and production of battery materials
• Current investment in innovative cathode materials plant in
Elyria, Ohio to start up in mid-2012
Portfolio expansion by entering electrolytes and positioning
BASF as future system supplier for high performance batteries
Lightweight construction solutions and heat management
systems further help to reduce energy consumption

Electromobility – leveraging BASF’s
R&D and business platforms

Outlook 2011

Assumptions
We forecast Brent oil price of $110/bbl (from $100/bbl) and US$/€ of $1.40 (from $1.35)
We assume that oil production in Libya will not restart during 2011
→ EBIT before special items from our Libyan oil production for the full year 2011
will be about €1 billion lower compared with 2010
(thereof about €700 million of non-compensable oil taxes)
Targets 2011
We expect to generate significantly higher sales
We aim to significantly exceed the 2010 EBIT before special items
adjusted for non-compensable oil taxes (2010: €7.2 billion)
We expect to achieve a high premium on our cost of capital
Medium-term targets
We aim to grow sales on average by two percentage points per year
faster than chemical production growth
We strive to grow our earnings further year by year,
and to achieve an EBITDA margin of 18% by 2012

Chemicals
Robust sales and earnings supported by price increases

Q2’11 segment sales (million €) vs. Q2’10 EBIT before special items (million €)

Intermediates Inorganics 800 765
351 687 674
693 617
+7% +8% 537
600

€3,392 400
+14%
200
Petrochemicals
2,348 0
+18% Q2 Q3 Q4 Q1 Q2
2010 2011

Sales development
Period Volumes Prices Portfolio Currencies
Q2’11 vs. Q2’10 2% 20% 0% (8)%


Plastics
Strong demand in all product lines resulted in increased earnings


Polyurethanes 400 371 393 383
349
1,498
+7% 285

€2,828 200
+9%
Performance
Polymers
0
1,330
+12% Q2 Q3 Q4 Q1 Q2
2010 2011

Sales development
Q2’11 vs. Q2’10 4% 12% 0% (7)%


Performance Products
Strong earnings contributions from acquired Cognis business


Care Chemicals Performance 600 554
513
1,353 Chemicals 500 471
+100% 908
400 370
+13%
Nutrition €4,095 300
294
& Health
480 +30% 200
+29% 100
Dispersions
Paper Chemicals & Pigments 0
417 937 Q2 Q3 Q4 Q1 Q2
(5)% +9% 2010 2011

Sales development
Q2’11 vs. Q2’10 2% 6% 27% (5)%


Functional Solutions
Strong demand from automotive drove earnings growth


Catalysts Construction 165 158 167
1,500 Chemicals 150 142
+22% 577
0%
€2,766 100

+13%
50 33
Coatings
689 0
+6% Q2 Q3 Q4 Q1 Q2
2010 2011

Sales development
Q2’11 vs. Q2’10 12% 8% 0% (7)%


Agricultural Solutions
High global demand for agricultural products drove volume growth

1,400 1,211 0% 1,205 400
+3% 331
1,200 320
1,000 300
800
600 200

400
100
200
0 0
Q2 Q2 Q2 Q2
2010 2011 2010 2011

Sales development
Q2’11 vs. Q2’10 6% 0% 0% (6)%


Oil & Gas
Higher oil and gas prices compensated for lower volumes

Q2’11 segment sales (million €) vs. Q2’10 EBIT before special items/ Net income (million €)

Exploration & 600
515
Production
563 Non-compensable
(34)% 400 oil taxes 209
€2,461 332
420
+4% 200 269
Natural Gas 257
Trading 95
148
63
1,898 0
+25% Q2 Q2
2010 2011

EBIT bSI Exploration & Production Net income
EBIT bSI Natural Gas Trading
Sales development
Period Volumes Prices/Currencies Portfolio
Q2’11 vs. Q2’10 (19)% 23% 0%


Review of “Other”

Million € Q2 2011 Q2 2010
Sales 1,714 1,471
thereof Styrenics 811 785*
EBIT before special items (163) (301)
thereof Corporate research (87) (78)
Group corporate costs (59) (55)
Currency results, hedges and other (118) (198)
valuation effects
Styrenics, fertilizers, other businesses 76 67
Special items 27** (106)
EBIT (136) (407)

* Since January 1, 2011, Styrenics only includes the carved-out styrenics businesses;
the previous year’s values were adjusted accordingly
** Incl. €68 million from repeal of fine imposed by the EU on Ciba in 2009


Operating cash flow in H1 2011

Million € H1 2011 H1 2010
Cash provided by operating activities 3,038 2,721
thereof Changes in net working capital (1,178) (1,355)
Cash provided by investing activities 81 (599)
thereof Payments related to tangible / intangible assets (1,265) (889)
Cash used in financing activities (2,764) (2,054)
thereof Changes in financial liabilities (486) (292)
Dividends (2,278) (1,762)

First half 2011
Operating cash flow at €3.0 billion despite reclassification of €887 million gain
from the sale of K+S stake
Free cash flow at €1.8 billion
Net debt amounted to €12.3 billion, a reduction of €1.3 billion since end of 2010


Back-Up


Financial highlights

Million € Q2 2011 Q2 2010 Δ% Q1 2011 Δ%
Sales 18,461 16,214 +14% 19,361 (5)%
changes due to
- volumes +2%
- prices +13%
- portfolio +5%
- currencies (7)%
EBITDA 3,015 2,867 +5% 3,365 (10)%

EBIT before special items 2,237 2,206 +1% 2,732 (18)%
EBIT before special items 2,237 1,997 +12% 2,452 (9)%
adjusted for non-compensable oil taxes

Special items 20 (127) - (182) -

EBIT 2,217 2,079 +7% 2,550 (13)%

Net income 1,454 1,183 +23% 2,411 (40)%

EPS (€) 1.59 1.29 +23% 2.62 (39)%

Adjusted EPS (€) 1.75 1.50 +17% 1.94 (10)%

Balance sheet review

Balance sheet June 30, 2011 vs. end of 2010 (billion €)
Long-term assets decreased by
59.3 59.3
€2.0 billion amongst others due
59.4 59.4
to the sale of shares in K+S
Stock- Inventories increased by €0.8
23.0 22.7 holders’
Long-term billion reflecting the expansion
Equity
assets 32.5 34.5 of our business and raw
material inflation
Financial
14.1 15.0 debt Net debt decreased by €1.3
Inventories 9.5 8.7 billion to €12.3 billion
Accounts 22.2 Accounts receivable were up by
receivable 10.9 10.2 21.7 Other
liabilities €0.7 billion as a result of the
Other assets 4.6 4.5
1.8 1.5 expansion of our business
Liquid funds
Jun 31 Dec 31 Jun 31 Dec 31 Equity ratio at 39%
2011 2010 2011 2010 (up 1 percentage point)


Cognis – integration objectives

Targets
Achieve 20% EBITDA margin
in the Performance Products segment by 2012
Acquisition accretive as of 2012

Costs
One-time integration costs of €290 million
until end of 2013
Inventory step-up of €120 million
Costs already incurred:
− 2010: €80 million (thereof €60 million inventory step-up)
− H1/2011: €210 million (thereof €60 million inventory step-up)

Synergies
Generate €275 million of additional EBIT
− €135 million growth synergies by the end of 2015
− €140 million cost synergies by the end of 2013

BASF Analyst Conference Q2 2011

BASF Analyst Conference Q2 2011

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