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BASF 2nd Quarter 2011 Analyst Conference Call
July 28, 2011, 14:00 (CEST), Ludwigshafen




                                                  BASF posts strong results

                                                  Second Quarter 2011
                                                  Financial highlights
                                                  July 28, 2011




  BASF 2nd Quarter 2011 Analyst Conference Call                               1




Analyst Conference Call Script
Dr. Kurt Bock
Dr. Hans-Ulrich Engel

The spoken word applies.
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BASF 2nd Quarter 2011 Analyst Conference Call                                                     July 28, 2011




   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 2nd Quarter 2011 Analyst Conference Call                                                       2




          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%
           BASF 2nd Quarter 2011 Analyst Conference Call                                               3
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BASF 2nd Quarter 2011 Analyst Conference Call               July 28, 2011



Dr. Kurt Bock
Ladies and Gentlemen, good afternoon and thank you for joining us.


[Chart 3: BASF posts strong results]
  After a powerful start into the year we had another good and very
  solid quarter. Sales grew by 14 percent to 18.5 billion Euros
  compared to 2010. More importantly, we succeeded to grow
  volumes in our chemical business by 5 percent. For the first time
  in 2011 the weakening of the US Dollar led to a negative sales
  effect of 6 percent, which however, was largely compensated by
  the excellent performance of the acquired former Cognis
  business.

  In Oil and Gas, growth was purely price driven due to the
  shutdown of our operations in Libya. The missing sales and
  earnings from Libya – and we do not see our operations being
  restarted in 2011 – also affected the year over year earnings
  comparison. Adjusted for Libya, EBIT before special items
  increased by 16 percent to 2.2 billion Euros.

  Adjusted earnings per share grew by 17 percent to 1.75 Euro.

  What we saw in Q2 was a continued upward trend in raw material
  costs. Our sales prices rose by 13 percent in total and 12 percent
  in the chemicals business. However, we were able to pass on the
  cost increases to a very large degree.

  We also had planned and unplanned plant outages which
  affected earnings negatively, most notably, the turnaround of a
  cracker as well as the disruption of our acetylene plant in
  Ludwigshafen which impacted our butanediol value chain.
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BASF 2nd Quarter 2011 Analyst Conference Call    July 28, 2011
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BASF 2nd Quarter 2011 Analyst Conference Call                July 28, 2011



  At the end of the second quarter, we saw some inventory
  destocking at our customers, above all in Asia. We interpret this
  as a sign that the exceptionally high growth rates of the last
  couple of quarters are going to normalize as expected. We
  therefore reiterate our guidance for full year sales and earnings.
Page 6
BASF 2nd Quarter 2011 Analyst Conference Call                                                              July 28, 2011




     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

      BASF 2nd Quarter 2011 Analyst Conference Call                                                              4
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BASF 2nd Quarter 2011 Analyst Conference Call                July 28, 2011



[Chart 4: Important milestones in Q2 2011]

In the second quarter, we also achieved important milestones:

  As you all know, BASF and INEOS plan to combine major parts of
  their global styrene monomer, polymer and copolymer business
  activities into a new joint venture called Styrolution. In the second
  quarter, we took important steps towards the establishment of the
  joint venture Styrolution. In May, the companies signed the joint
  venture contract. Meanwhile, the new joint venture has already
  been approved by the U.S. Federal Trade Commission and the
  EU Commission. We are still awaiting approvals from antitrust
  authorities in a few countries and expect closing in the fourth
  quarter.

  In May, we announced our plans to build the world’s largest-
  single train TDI plant in Europe. TDI is a key component for the
  polyurethanes industry. It is widely used in the automotive
  industry, for example in seating cushions and interior applications,
  as well as in the furniture segment, for example in flexible foams
  for mattresses and cushions. We expect the global TDI market to
  grow faster than GDP in the coming years, with strong
  contributions from Central and Eastern Europe, Middle East and
  Africa. Our excellent technology and unique Verbund concept will
  ensure an industry-leading cost structure. We aim to start up this
  fully integrated plant in 2014. This investment supports our growth
  strategy and underlines our leading position as the largest TDI
  producer.
Page 8
BASF 2nd Quarter 2011 Analyst Conference Call                                 July 28, 2011




        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
        BASF 2nd Quarter 2011 Analyst Conference Call                                5
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BASF 2nd Quarter 2011 Analyst Conference Call                  July 28, 2011



  [Chart 5: Focus on future markets]
  We are further intensifying our efforts in the field of electro-
  mobility and will bring BASF’s innovation strength to function
  here.

  Energy efficient electric cars are becoming key to the climate
  friendly transformation of individual mobility. Improved batteries
  as well as innovative solutions for weight reduction and heat
  management are major challenges electromobility faces today.
  We see new chemical solutions as a major contributor to
  overcoming these challenges. BASF is therefore committed to
  leveraging its research and business platforms on this future
  market.

  In battery materials, for example, BASF will be investing a three-
  digit million euro sum in research, development and production
  over the next five years. Part of the investment is being
  channeled into the construction of a production plant for
  advanced cathode materials in Elyria, Ohio. This new facility is
  scheduled to supply the market with innovative cathode materials
  for the production of high-performance lithium-ion batteries from
  mid-2012 onwards. In addition, we are expanding our activities in
  the field of high-quality tailored electrolytes to position ourselves
  as a future systems supplier in this market.

  Furthermore, in order to reduce the energy consumption of
  electric vehicles we are working on resin-based solutions for fiber
  reinforced composites to reduce vehicle weight as well as heat
  management solutions.
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BASF 2nd Quarter 2011 Analyst Conference Call                                                       July 28, 2011




    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
    BASF 2nd Quarter 2011 Analyst Conference Call                                                       6
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BASF 2nd Quarter 2011 Analyst Conference Call                July 28, 2011



[Chart 6: Outlook 2011]

Now let’s come to the outlook for 2011. To put it in a nutshell, we
confirm our strong outlook for 2011. We will continue to focus our
attention on protecting our margins and optimizing our fixed costs
as well as keeping working capital at a minimum level.

With the further weakening of the US Dollar and the high oil price
volatility we see the need to adjust the assumptions for our full year
outlook:

  We are increasing our Brent oil price forecast from 100 Dollars
  per barrel to 110 Dollars per barrel and we are expecting a
  Dollar/Euro exchange rate of 1.40, up from 1.35.

  Our assumptions for the growth of GDP, industrial and chemical
  production remain unchanged.

  We are still assuming that the oil production in Libya will not
  resume during 2011.

  For the full year 2011, we expect to generate significantly higher
  sales than in 2010. As already explained during our first quarter
  conference call, EBIT before special items excluding non-
  compensable oil taxes provides a much more meaningful
  guidance for 2011. We therefore confirm, that we aim to
  significantly exceed the 2010 EBIT before special items excluding
  non-compensable oil taxes which amounted to 7.2 billion Euros.

Finally, we remain committed to our target of achieving a high
premium on our cost of capital in 2011.



With this I’ll hand over to Hans.
Page 12
BASF 2nd Quarter 2011 Analyst Conference Call                                                                           July 28, 2011




      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%       600                      537

                                    €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)%



      BASF 2nd Quarter 2011 Analyst Conference Call                                                                           7
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BASF 2nd Quarter 2011 Analyst Conference Call                July 28, 2011



Dr. Hans-Ulrich Engel

Good afternoon ladies and gentlemen.
I will highlight the financial performance of each segment in more
detail and focus on the respective business developments in
comparison to the second quarter of 2010.


[Chart 7: Chemicals – Robust sales and earnings supported by
price increases]

Ongoing solid demand in the Chemicals segment drove up sales
significantly. We successfully increased prices in many product lines
in order to offset higher raw material costs. Planned and unplanned
plant shutdowns negatively impacted our EBIT. Nevertheless,
earnings remained almost on the strong level of the previous year’s
quarter.

  In Petrochemicals, the strong demand for our products led to
  significant sales growth in all regions, but we witnessed a
  declining momentum in Asia, specifically in China, towards the
  end of the quarter. The performance in the acrylics business was
  excellent as a result of ongoing tight markets. Plasticizers, on the
  other hand, were weaker as demand from the construction and
  housing industries remained subdued, especially in North
  America. Earnings came in at a very high level, albeit below the
  extremely high previous year’s quarter. This was due to the
  turnaround at our larger cracker in Ludwigshafen.

  In Inorganics, continued strong demand, particularly for inorganic
  chemicals, glues and impregnating resins, led to an
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BASF 2nd Quarter 2011 Analyst Conference Call     July 28, 2011
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BASF 2nd Quarter 2011 Analyst Conference Call                July 28, 2011



  increase in sales. Lower margins in ammonia and methanol as
  well as higher costs triggered by major planned turnarounds of
  our ammonia and sulphuric acid plants resulted in lower earnings.

  Higher sales in Intermediates were driven particularly by
  customers from the plastics, coatings and textile fiber industries.
  The strong demand for our products could not be fully met in all
  product lines. The unplanned shutdown of the acetylene plant in
  Ludwigshafen due to a fire significantly impacted our butanediol
  value chain. As a consequence we had to declare force majeure
  for butanediol and several downstream products in Europe.
  Nevertheless, earnings were up overall given higher volumes and
  improved margins.
Page 16
BASF 2nd Quarter 2011 Analyst Conference Call                                                                           July 28, 2011




      Plastics
      Strong demand in all product lines resulted in increased earnings


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

      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
       Period                                         Volumes            Prices          Portfolio          Currencies
       Q2’11 vs. Q2’10                                   4%                 12%            0%                      (7)%



      BASF 2nd Quarter 2011 Analyst Conference Call                                                                           8
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BASF 2nd Quarter 2011 Analyst Conference Call                 July 28, 2011



[Chart 8: Plastics – Strong demand in all product lines resulted
in increased earnings]

In Plastics, we experienced strong demand in all product lines and
we increased sales and earnings compared to the previous year’s
quarter in both divisions.

  In Performance Polymers, positive pricing momentum drove
  sales growth. Demand for polyamides and intermediates
  remained at a high level. The Engineering Plastics business
  benefitted from strong demand from the automotive industry,
  especially in Europe and North America. Fierce competition from
  Asia adversely affected demand for expandable polystyrene from
  the construction industry in Asia and Europe. Sales of our
  biodegradable plastics were temporarily impacted by limited raw
  material availability, but still increased substantially. EBIT before
  special items rose significantly as a result of higher volumes and
  improved margins, especially in the polyamide and intermediates
  businesses.

  In Polyurethanes, sales were driven by higher volumes and
  prices in all regions, most pronounced in Europe. Demand from
  the automotive and construction industries increased compared
  with the previous year’s quarter. We were able to increase prices
  for MDI, polyurethane systems and polyols, while TDI prices were
  slightly lower. Despite several turnarounds, earnings were up
  mainly because of higher volumes.
Page 18
BASF 2nd Quarter 2011 Analyst Conference Call                                                                            July 28, 2011




      Performance Products
      Strong earnings contributions from acquired Cognis business


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

      Care Chemicals                                       Performance       600                            554
                                                                                                                         513
      1,353                                                  Chemicals       500   471
      +100%                                                         908                   370
                                                                             400
                                                                  +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
       Period                                         Volumes             Prices          Portfolio          Currencies
       Q2’11 vs. Q2’10                                    2%                 6%                 27%                  (5)%



      BASF 2nd Quarter 2011 Analyst Conference Call                                                                            9
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BASF 2nd Quarter 2011 Analyst Conference Call                July 28, 2011



[Chart 9: Performance Products – Strong earnings
contributions from acquired Cognis business]

Sales and EBIT before special items in the Performance Products
segment increased due to the acquired Cognis business, higher
volumes as well as the successful repositioning of the combined
businesses following the Ciba integration.

  In Dispersions & Pigments, we could increase sales in all
  product lines and regions, except for North America where we
  faced negative currency effects. Margin levels could be largely
  maintained since successful price increases helped to offset
  higher raw material costs. Thanks to higher volumes and the
  successful repositioning of the combined businesses following the
  Ciba integration we were able to improve earnings.

  In Care Chemicals, sales doubled and earnings were up
  significantly due to Cognis. Volumes went up despite the limited
  availability of precursors for hygiene and cosmetics. We
  experienced strong demand, especially for detergents and
  formulators. We successfully maintained our margins despite
  significantly higher input costs. As a result, earnings were up
  substantially.

  In Nutrition & Health, net sales grew strongly mainly due to the
  inclusion of Cognis. Demand was very good in all regions and in
  all businesses. In vitamins, we continued to face some price
  pressure but we see prices stabilizing at present. Earnings could
  not be maintained at the previous year’s level as a result of higher
  raw material costs, lower vitamin margins and a weaker US-
  Dollar.
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BASF 2nd Quarter 2011 Analyst Conference Call     July 28, 2011
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BASF 2nd Quarter 2011 Analyst Conference Call              July 28, 2011



  In an ongoing challenging business environment, sales in Paper
  Chemicals decreased slightly. Sales were impacted by
  divestments and portfolio optimizations as well as our “value over
  volume” strategy. Earnings were below the previous year’s
  quarter as we were not able to fully pass on higher raw material
  costs.

  In Performance Chemicals, sales increased substantially thanks
  to price increases and the inclusion of the Cognis businesses.
  Weaker order volumes from Japan could not be compensated by
  the overall strong demand from the automotive and refinery
  industries. EBIT before special items decreased slightly, mainly
  due to lower volumes and higher raw material costs, which could
  only partially be compensated by price increases.
Page 22
BASF 2nd Quarter 2011 Analyst Conference Call                                                                            July 28, 2011




      Functional Solutions
      Strong demand from automotive drove earnings growth


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

       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
       Period                                         Volumes              Prices          Portfolio        Currencies
       Q2’11 vs. Q2’10                                   12%                  8%                 0%                  (7)%



      BASF 2nd Quarter 2011 Analyst Conference Call                                                                            10
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BASF 2nd Quarter 2011 Analyst Conference Call               July 28, 2011



[Chart 10: Functional Solutions – Strong demand from
automotive drove earnings growth]

Volumes in the Functional Solutions segment were significantly
higher, reflecting the strong global demand for mobile emissions
catalysts and OEM coatings from the automotive industry. Demand
from the construction industry rose slightly in Northern, Central and
Eastern Europe. EBIT before special items improved slightly thanks
to strong volume growth in Catalysts.

  Catalysts’ sales rose sharply. Mobile emission catalysts showed
  strong growth in Europe, Asia and North America. Moreover, we
  realized higher volumes in refinery and chemical catalysts. As a
  result, EBIT before special items came in far above the level of
  the prior year.

  Sales in Construction Chemicals were at the previous year’s
  level reflecting a volume improvement at stable prices as well as
  negative currency effects. Volumes increased in all major regions
  except for Southern Europe. Volumes in North America improved
  despite the ongoing challenging market environment. EBIT before
  special items did not match the previous year’s level due to higher
  raw material costs, which we could not pass on to our customers.

  In Coatings, the positive trend in demand continued for all
  product lines, especially in automotive OEM coatings and
  decorative paints. However, raw material prices could not be fully
  passed on. As a result, EBIT before special items was below the
  very good level of the previous year.
Page 24
BASF 2nd Quarter 2011 Analyst Conference Call                                                            July 28, 2011




    Agricultural Solutions
    High global demand for agricultural products drove volume growth


    Q2’11 segment sales (million €) vs. Q2’10                      EBIT before special items (million €)
    1,400                  1,211             0%       1,205         400
    1,200                                                                      320                 331
    1,000                                                           300
     800
     600                                                            200

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



    Sales development
     Period                                         Volumes      Prices          Portfolio        Currencies
     Q2’11 vs. Q2’10                                    6%         0%                 0%                 (6)%



    BASF 2nd Quarter 2011 Analyst Conference Call                                                               11
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BASF 2nd Quarter 2011 Analyst Conference Call                July 28, 2011



[Chart 11: Agricultural Solutions – High global demand for
agricultural products drove volume growth ]

In Agricultural Solutions, high global demand for agricultural
products drove volume growth, especially in fungicides. This
development, however, was offset by negative currency effects from
the devaluation of the US-Dollar, resulting in sales at the previous
year’s level.

EBIT before special items was slightly above the prior year level
despite significantly negative currency effects.

In Europe, we increased sales thanks to higher demand for our
products in Eastern Europe which could more than offset the impact
of dry weather conditions in Western Europe.

In North America, sales declined as a result of a weaker US-Dollar
as well as weather related acreage reductions and a compressed
season, which led to a reduced number of herbicide applications.
Our Plant Health business performed strongly.

We improved sales in South America, mainly based on higher
demand for Clearfield®, our herbicide tolerance technology. Further
sales growth came from insecticides for sugarcane and seed
treatment products.

In Asia, sales were significantly above the previous year’s quarter
driven by our herbicide business.
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BASF 2nd Quarter 2011 Analyst Conference Call                                                                                 July 28, 2011




      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
                                                                          0                                    63
                                                            1,898
                                                            +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%



      BASF 2nd Quarter 2011 Analyst Conference Call                                                                                12
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BASF 2nd Quarter 2011 Analyst Conference Call                   July 28, 2011



[Chart 12: Oil & Gas – Higher oil and gas prices compensated
for lower volumes]

Despite the production stoppage in Libya, sales in Oil & Gas
increased slightly, as a result of higher oil and gas prices.
Consequently, EBIT before special items adjusted for non-
compensable income taxes on oil increased.

  In Exploration & Production sales decreased considerably due
  to the discontinuation of our oil production in Libya. Nevertheless,
  earnings adjusted for non-compensable oil taxes increased
  substantially due to the higher oil and gas prices.

  Sales in Natural Gas Trading were up significantly, reflecting
  higher gas prices. Earnings, on the other hand, decreased as a
  result of slightly lower volumes and negative time-lag effects.

A look at the income statement shows that net income rose by an
impressive 74 percent to 257 million Euros. This was related to
significantly higher oil and gas prices as well as a substantially lower
tax rate because of the production stoppage in Libya.
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BASF 2nd Quarter 2011 Analyst Conference Call                                                          July 28, 2011




     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



     BASF 2nd Quarter 2011 Analyst Conference Call                                                           13
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BASF 2nd Quarter 2011 Analyst Conference Call               July 28, 2011



[Chart 13: Review of “Other”]

In “Other”, sales grew in styrenics, fertilizers and other businesses.
EBIT before special items improved by 138 million Euros to minus
163 million Euros mainly due to better operating results as well as
favorable currency and valuation effects.

Special items in “Other” amounted to plus 27 million Euros. They
contained 68 million Euros of income resulting from the repeal of
the fine imposed by the EU on Ciba in 2009 in relation to heat
stabilizers.
Page 30
BASF 2nd Quarter 2011 Analyst Conference Call                                                          July 28, 2011




     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

      BASF 2nd Quarter 2011 Analyst Conference Call                                                         14
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BASF 2nd Quarter 2011 Analyst Conference Call                                                     July 28, 2011



[Chart 14: Operating cash flow in H1 2011]

Let me now briefly conclude with our cash flow.

Cash provided by operating activities at around 3.0 billion Euros in
the first half of 2011 was 317 million Euros higher than in the same
period of the previous year. This can primarily be attributed to
increased earnings. Working capital rose between January and
June 2011 reflecting the growth in our business, higher raw material
costs as well as higher natural gas injection in our storage facilities.

Cash provided by investing activities amounted to 81 million Euros.
In March, the sale of shares in K+S resulted in a cash inflow of 972
million Euros with a net gain of 887 million Euros. CAPEX amounted
to 1.3 billion Euros including the investments in the OPAL-pipeline,
the capacity expansion of Ecoflex/Ecovio and the ongoing extension
of our Verbund site in Nanjing.

Financing activities led to a cash outflow of 2.8 billion Euros, mainly
due to a 486 million Euros reduction in financial liabilities and 2.3
billion Euros of dividend payments to shareholders of BASF SE and
minority shareholders in Group companies.

Since the end of 2010, we reduced net debt by 1.3 billion Euros to
12.3 billion Euros.

Thank you for your attention. We are now happy to take your
questions.




                                BASF 4Q/FY’2010 Conference | February 24th, 2011             40
Page 32
BASF 2nd Quarter 2011 Analyst Conference Call                                                     July 28, 2011




        Back-Up




         BASF 2nd Quarter 2011 Analyst Conference Call                                               16




      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                                                           (6)%
       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)   (84)%      (182)   (89)%

       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)%
      BASF 2nd Quarter 2011 Analyst Conference Call                                                       17
Page 33
BASF 2nd Quarter 2011 Analyst Conference Call                                                                       July 28, 2011




      Balance sheet review

      Balance sheet June 30, 2011 vs. end of 2010 (billion €)
                                                                                         Long-term assets decreased by
                                  59.3                    59.3    59.4
                                                                                         €2.0 billion amongst others due
                                                 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                   Net debt decreased by €1.3
                                                                           debt
            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
                                                  1.5
                                                                                         expansion of our business
         Liquid funds            1.8
                               Jun 31          Dec 31    Jun 31   Dec 31                 Equity ratio at 39%
                                2011            2010      2011     2010                  (up 1 percentage point)


      BASF 2nd Quarter 2011 Analyst Conference Call                                                                         18




      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 2nd Quarter 2011 Analyst Conference Call                                                                         19

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Speech BASF Analyst Conference Call Q2 2011

  • 1. BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011, 14:00 (CEST), Ludwigshafen BASF posts strong results Second Quarter 2011 Financial highlights July 28, 2011 BASF 2nd Quarter 2011 Analyst Conference Call 1 Analyst Conference Call Script Dr. Kurt Bock Dr. Hans-Ulrich Engel The spoken word applies.
  • 2. Page 2 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 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 2nd Quarter 2011 Analyst Conference Call 2 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% BASF 2nd Quarter 2011 Analyst Conference Call 3
  • 3. Page 3 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 Dr. Kurt Bock Ladies and Gentlemen, good afternoon and thank you for joining us. [Chart 3: BASF posts strong results] After a powerful start into the year we had another good and very solid quarter. Sales grew by 14 percent to 18.5 billion Euros compared to 2010. More importantly, we succeeded to grow volumes in our chemical business by 5 percent. For the first time in 2011 the weakening of the US Dollar led to a negative sales effect of 6 percent, which however, was largely compensated by the excellent performance of the acquired former Cognis business. In Oil and Gas, growth was purely price driven due to the shutdown of our operations in Libya. The missing sales and earnings from Libya – and we do not see our operations being restarted in 2011 – also affected the year over year earnings comparison. Adjusted for Libya, EBIT before special items increased by 16 percent to 2.2 billion Euros. Adjusted earnings per share grew by 17 percent to 1.75 Euro. What we saw in Q2 was a continued upward trend in raw material costs. Our sales prices rose by 13 percent in total and 12 percent in the chemicals business. However, we were able to pass on the cost increases to a very large degree. We also had planned and unplanned plant outages which affected earnings negatively, most notably, the turnaround of a cracker as well as the disruption of our acetylene plant in Ludwigshafen which impacted our butanediol value chain.
  • 4. Page 4 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011
  • 5. Page 5 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 At the end of the second quarter, we saw some inventory destocking at our customers, above all in Asia. We interpret this as a sign that the exceptionally high growth rates of the last couple of quarters are going to normalize as expected. We therefore reiterate our guidance for full year sales and earnings.
  • 6. Page 6 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 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 BASF 2nd Quarter 2011 Analyst Conference Call 4
  • 7. Page 7 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 [Chart 4: Important milestones in Q2 2011] In the second quarter, we also achieved important milestones: As you all know, BASF and INEOS plan to combine major parts of their global styrene monomer, polymer and copolymer business activities into a new joint venture called Styrolution. In the second quarter, we took important steps towards the establishment of the joint venture Styrolution. In May, the companies signed the joint venture contract. Meanwhile, the new joint venture has already been approved by the U.S. Federal Trade Commission and the EU Commission. We are still awaiting approvals from antitrust authorities in a few countries and expect closing in the fourth quarter. In May, we announced our plans to build the world’s largest- single train TDI plant in Europe. TDI is a key component for the polyurethanes industry. It is widely used in the automotive industry, for example in seating cushions and interior applications, as well as in the furniture segment, for example in flexible foams for mattresses and cushions. We expect the global TDI market to grow faster than GDP in the coming years, with strong contributions from Central and Eastern Europe, Middle East and Africa. Our excellent technology and unique Verbund concept will ensure an industry-leading cost structure. We aim to start up this fully integrated plant in 2014. This investment supports our growth strategy and underlines our leading position as the largest TDI producer.
  • 8. Page 8 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 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 BASF 2nd Quarter 2011 Analyst Conference Call 5
  • 9. Page 9 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 [Chart 5: Focus on future markets] We are further intensifying our efforts in the field of electro- mobility and will bring BASF’s innovation strength to function here. Energy efficient electric cars are becoming key to the climate friendly transformation of individual mobility. Improved batteries as well as innovative solutions for weight reduction and heat management are major challenges electromobility faces today. We see new chemical solutions as a major contributor to overcoming these challenges. BASF is therefore committed to leveraging its research and business platforms on this future market. In battery materials, for example, BASF will be investing a three- digit million euro sum in research, development and production over the next five years. Part of the investment is being channeled into the construction of a production plant for advanced cathode materials in Elyria, Ohio. This new facility is scheduled to supply the market with innovative cathode materials for the production of high-performance lithium-ion batteries from mid-2012 onwards. In addition, we are expanding our activities in the field of high-quality tailored electrolytes to position ourselves as a future systems supplier in this market. Furthermore, in order to reduce the energy consumption of electric vehicles we are working on resin-based solutions for fiber reinforced composites to reduce vehicle weight as well as heat management solutions.
  • 10. Page 10 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 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 BASF 2nd Quarter 2011 Analyst Conference Call 6
  • 11. Page 11 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 [Chart 6: Outlook 2011] Now let’s come to the outlook for 2011. To put it in a nutshell, we confirm our strong outlook for 2011. We will continue to focus our attention on protecting our margins and optimizing our fixed costs as well as keeping working capital at a minimum level. With the further weakening of the US Dollar and the high oil price volatility we see the need to adjust the assumptions for our full year outlook: We are increasing our Brent oil price forecast from 100 Dollars per barrel to 110 Dollars per barrel and we are expecting a Dollar/Euro exchange rate of 1.40, up from 1.35. Our assumptions for the growth of GDP, industrial and chemical production remain unchanged. We are still assuming that the oil production in Libya will not resume during 2011. For the full year 2011, we expect to generate significantly higher sales than in 2010. As already explained during our first quarter conference call, EBIT before special items excluding non- compensable oil taxes provides a much more meaningful guidance for 2011. We therefore confirm, that we aim to significantly exceed the 2010 EBIT before special items excluding non-compensable oil taxes which amounted to 7.2 billion Euros. Finally, we remain committed to our target of achieving a high premium on our cost of capital in 2011. With this I’ll hand over to Hans.
  • 12. Page 12 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 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% 600 537 €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)% BASF 2nd Quarter 2011 Analyst Conference Call 7
  • 13. Page 13 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 Dr. Hans-Ulrich Engel Good afternoon ladies and gentlemen. I will highlight the financial performance of each segment in more detail and focus on the respective business developments in comparison to the second quarter of 2010. [Chart 7: Chemicals – Robust sales and earnings supported by price increases] Ongoing solid demand in the Chemicals segment drove up sales significantly. We successfully increased prices in many product lines in order to offset higher raw material costs. Planned and unplanned plant shutdowns negatively impacted our EBIT. Nevertheless, earnings remained almost on the strong level of the previous year’s quarter. In Petrochemicals, the strong demand for our products led to significant sales growth in all regions, but we witnessed a declining momentum in Asia, specifically in China, towards the end of the quarter. The performance in the acrylics business was excellent as a result of ongoing tight markets. Plasticizers, on the other hand, were weaker as demand from the construction and housing industries remained subdued, especially in North America. Earnings came in at a very high level, albeit below the extremely high previous year’s quarter. This was due to the turnaround at our larger cracker in Ludwigshafen. In Inorganics, continued strong demand, particularly for inorganic chemicals, glues and impregnating resins, led to an
  • 14. Page 14 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011
  • 15. Page 15 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 increase in sales. Lower margins in ammonia and methanol as well as higher costs triggered by major planned turnarounds of our ammonia and sulphuric acid plants resulted in lower earnings. Higher sales in Intermediates were driven particularly by customers from the plastics, coatings and textile fiber industries. The strong demand for our products could not be fully met in all product lines. The unplanned shutdown of the acetylene plant in Ludwigshafen due to a fire significantly impacted our butanediol value chain. As a consequence we had to declare force majeure for butanediol and several downstream products in Europe. Nevertheless, earnings were up overall given higher volumes and improved margins.
  • 16. Page 16 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 Plastics Strong demand in all product lines resulted in increased earnings Q2’11 segment sales (million €) vs. Q2’10 EBIT before special items (million €) 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 Period Volumes Prices Portfolio Currencies Q2’11 vs. Q2’10 4% 12% 0% (7)% BASF 2nd Quarter 2011 Analyst Conference Call 8
  • 17. Page 17 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 [Chart 8: Plastics – Strong demand in all product lines resulted in increased earnings] In Plastics, we experienced strong demand in all product lines and we increased sales and earnings compared to the previous year’s quarter in both divisions. In Performance Polymers, positive pricing momentum drove sales growth. Demand for polyamides and intermediates remained at a high level. The Engineering Plastics business benefitted from strong demand from the automotive industry, especially in Europe and North America. Fierce competition from Asia adversely affected demand for expandable polystyrene from the construction industry in Asia and Europe. Sales of our biodegradable plastics were temporarily impacted by limited raw material availability, but still increased substantially. EBIT before special items rose significantly as a result of higher volumes and improved margins, especially in the polyamide and intermediates businesses. In Polyurethanes, sales were driven by higher volumes and prices in all regions, most pronounced in Europe. Demand from the automotive and construction industries increased compared with the previous year’s quarter. We were able to increase prices for MDI, polyurethane systems and polyols, while TDI prices were slightly lower. Despite several turnarounds, earnings were up mainly because of higher volumes.
  • 18. Page 18 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 Performance Products Strong earnings contributions from acquired Cognis business Q2’11 segment sales (million €) vs. Q2’10 EBIT before special items (million €) Care Chemicals Performance 600 554 513 1,353 Chemicals 500 471 +100% 908 370 400 +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 Period Volumes Prices Portfolio Currencies Q2’11 vs. Q2’10 2% 6% 27% (5)% BASF 2nd Quarter 2011 Analyst Conference Call 9
  • 19. Page 19 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 [Chart 9: Performance Products – Strong earnings contributions from acquired Cognis business] Sales and EBIT before special items in the Performance Products segment increased due to the acquired Cognis business, higher volumes as well as the successful repositioning of the combined businesses following the Ciba integration. In Dispersions & Pigments, we could increase sales in all product lines and regions, except for North America where we faced negative currency effects. Margin levels could be largely maintained since successful price increases helped to offset higher raw material costs. Thanks to higher volumes and the successful repositioning of the combined businesses following the Ciba integration we were able to improve earnings. In Care Chemicals, sales doubled and earnings were up significantly due to Cognis. Volumes went up despite the limited availability of precursors for hygiene and cosmetics. We experienced strong demand, especially for detergents and formulators. We successfully maintained our margins despite significantly higher input costs. As a result, earnings were up substantially. In Nutrition & Health, net sales grew strongly mainly due to the inclusion of Cognis. Demand was very good in all regions and in all businesses. In vitamins, we continued to face some price pressure but we see prices stabilizing at present. Earnings could not be maintained at the previous year’s level as a result of higher raw material costs, lower vitamin margins and a weaker US- Dollar.
  • 20. Page 20 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011
  • 21. Page 21 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 In an ongoing challenging business environment, sales in Paper Chemicals decreased slightly. Sales were impacted by divestments and portfolio optimizations as well as our “value over volume” strategy. Earnings were below the previous year’s quarter as we were not able to fully pass on higher raw material costs. In Performance Chemicals, sales increased substantially thanks to price increases and the inclusion of the Cognis businesses. Weaker order volumes from Japan could not be compensated by the overall strong demand from the automotive and refinery industries. EBIT before special items decreased slightly, mainly due to lower volumes and higher raw material costs, which could only partially be compensated by price increases.
  • 22. Page 22 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 Functional Solutions Strong demand from automotive drove earnings growth Q2’11 segment sales (million €) vs. Q2’10 EBIT before special items (million €) 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 Period Volumes Prices Portfolio Currencies Q2’11 vs. Q2’10 12% 8% 0% (7)% BASF 2nd Quarter 2011 Analyst Conference Call 10
  • 23. Page 23 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 [Chart 10: Functional Solutions – Strong demand from automotive drove earnings growth] Volumes in the Functional Solutions segment were significantly higher, reflecting the strong global demand for mobile emissions catalysts and OEM coatings from the automotive industry. Demand from the construction industry rose slightly in Northern, Central and Eastern Europe. EBIT before special items improved slightly thanks to strong volume growth in Catalysts. Catalysts’ sales rose sharply. Mobile emission catalysts showed strong growth in Europe, Asia and North America. Moreover, we realized higher volumes in refinery and chemical catalysts. As a result, EBIT before special items came in far above the level of the prior year. Sales in Construction Chemicals were at the previous year’s level reflecting a volume improvement at stable prices as well as negative currency effects. Volumes increased in all major regions except for Southern Europe. Volumes in North America improved despite the ongoing challenging market environment. EBIT before special items did not match the previous year’s level due to higher raw material costs, which we could not pass on to our customers. In Coatings, the positive trend in demand continued for all product lines, especially in automotive OEM coatings and decorative paints. However, raw material prices could not be fully passed on. As a result, EBIT before special items was below the very good level of the previous year.
  • 24. Page 24 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 Agricultural Solutions High global demand for agricultural products drove volume growth Q2’11 segment sales (million €) vs. Q2’10 EBIT before special items (million €) 1,400 1,211 0% 1,205 400 1,200 320 331 1,000 300 800 600 200 400 100 200 0 0 Q2 Q2 Q2 Q2 2010 2011 2010 2011 Sales development Period Volumes Prices Portfolio Currencies Q2’11 vs. Q2’10 6% 0% 0% (6)% BASF 2nd Quarter 2011 Analyst Conference Call 11
  • 25. Page 25 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 [Chart 11: Agricultural Solutions – High global demand for agricultural products drove volume growth ] In Agricultural Solutions, high global demand for agricultural products drove volume growth, especially in fungicides. This development, however, was offset by negative currency effects from the devaluation of the US-Dollar, resulting in sales at the previous year’s level. EBIT before special items was slightly above the prior year level despite significantly negative currency effects. In Europe, we increased sales thanks to higher demand for our products in Eastern Europe which could more than offset the impact of dry weather conditions in Western Europe. In North America, sales declined as a result of a weaker US-Dollar as well as weather related acreage reductions and a compressed season, which led to a reduced number of herbicide applications. Our Plant Health business performed strongly. We improved sales in South America, mainly based on higher demand for Clearfield®, our herbicide tolerance technology. Further sales growth came from insecticides for sugarcane and seed treatment products. In Asia, sales were significantly above the previous year’s quarter driven by our herbicide business.
  • 26. Page 26 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 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 0 63 1,898 +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% BASF 2nd Quarter 2011 Analyst Conference Call 12
  • 27. Page 27 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 [Chart 12: Oil & Gas – Higher oil and gas prices compensated for lower volumes] Despite the production stoppage in Libya, sales in Oil & Gas increased slightly, as a result of higher oil and gas prices. Consequently, EBIT before special items adjusted for non- compensable income taxes on oil increased. In Exploration & Production sales decreased considerably due to the discontinuation of our oil production in Libya. Nevertheless, earnings adjusted for non-compensable oil taxes increased substantially due to the higher oil and gas prices. Sales in Natural Gas Trading were up significantly, reflecting higher gas prices. Earnings, on the other hand, decreased as a result of slightly lower volumes and negative time-lag effects. A look at the income statement shows that net income rose by an impressive 74 percent to 257 million Euros. This was related to significantly higher oil and gas prices as well as a substantially lower tax rate because of the production stoppage in Libya.
  • 28. Page 28 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 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 BASF 2nd Quarter 2011 Analyst Conference Call 13
  • 29. Page 29 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 [Chart 13: Review of “Other”] In “Other”, sales grew in styrenics, fertilizers and other businesses. EBIT before special items improved by 138 million Euros to minus 163 million Euros mainly due to better operating results as well as favorable currency and valuation effects. Special items in “Other” amounted to plus 27 million Euros. They contained 68 million Euros of income resulting from the repeal of the fine imposed by the EU on Ciba in 2009 in relation to heat stabilizers.
  • 30. Page 30 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 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 BASF 2nd Quarter 2011 Analyst Conference Call 14
  • 31. Page 31 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 [Chart 14: Operating cash flow in H1 2011] Let me now briefly conclude with our cash flow. Cash provided by operating activities at around 3.0 billion Euros in the first half of 2011 was 317 million Euros higher than in the same period of the previous year. This can primarily be attributed to increased earnings. Working capital rose between January and June 2011 reflecting the growth in our business, higher raw material costs as well as higher natural gas injection in our storage facilities. Cash provided by investing activities amounted to 81 million Euros. In March, the sale of shares in K+S resulted in a cash inflow of 972 million Euros with a net gain of 887 million Euros. CAPEX amounted to 1.3 billion Euros including the investments in the OPAL-pipeline, the capacity expansion of Ecoflex/Ecovio and the ongoing extension of our Verbund site in Nanjing. Financing activities led to a cash outflow of 2.8 billion Euros, mainly due to a 486 million Euros reduction in financial liabilities and 2.3 billion Euros of dividend payments to shareholders of BASF SE and minority shareholders in Group companies. Since the end of 2010, we reduced net debt by 1.3 billion Euros to 12.3 billion Euros. Thank you for your attention. We are now happy to take your questions. BASF 4Q/FY’2010 Conference | February 24th, 2011 40
  • 32. Page 32 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 Back-Up BASF 2nd Quarter 2011 Analyst Conference Call 16 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 (6)% 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) (84)% (182) (89)% 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)% BASF 2nd Quarter 2011 Analyst Conference Call 17
  • 33. Page 33 BASF 2nd Quarter 2011 Analyst Conference Call July 28, 2011 Balance sheet review Balance sheet June 30, 2011 vs. end of 2010 (billion €) Long-term assets decreased by 59.3 59.3 59.4 €2.0 billion amongst others due 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 Net debt decreased by €1.3 debt 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 1.5 expansion of our business Liquid funds 1.8 Jun 31 Dec 31 Jun 31 Dec 31 Equity ratio at 39% 2011 2010 2011 2010 (up 1 percentage point) BASF 2nd Quarter 2011 Analyst Conference Call 18 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 2nd Quarter 2011 Analyst Conference Call 19