BASF Investor Day Asia-Pacific Nanjing Day 2

BASF Investor Day Asia Pacific, June 5-6, 2013 1
BASF Investor Day Asia Pacific
Presentations of Day 2 (Nanjing)

Cautionary note regarding
forward-looking statements
This presentation may contain 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. Forward-looking statements may include, 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 and assumptions with respect to future events and financial
performance. Actual financial performance 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. 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 in China –
A continuing growth story
Dr. Albert Heuser
President Greater China & Functions Asia Pacific
Investor Day
Asia Pacific
Nanjing, June 6, 2013

4BASF Investor Day Asia Pacific, June 5-6, 2013
1 | Trends in the Chinese chemical market
2 | BASF business performance in China
3 | Strategy implementation in China

2010
CAGR
4.8%
7%
8%
7%
11%
33%
34%
Real GDP
(in US$ trillion)
8%
6%
7%
14%
41%
24%
13.6 21.8
2020
Greater ChinaJapan South Asia
South Korea ASEAN ANZ
Clockwise from top:
 China real GDP 2012:
5.2 trillion US$ = 35% of Asian
real GDP
 Chinese per-capita income to
double by 2020 vs. 2010
 12th 5-year plan (2011-2015)
focuses on three main
priorities:
– sustainable growth
– industrial upgrading
– promotion of domestic
consumption
Greater China will increase share of the
regional GDP to more than 40% in 2020

Hebei
Beijing
Heilongjiang
Liaoning
Sichuan
Henan
Anhui
Jiangsu
Hubei
Hunan
Fujian
Jiangxi
Tianjin
Manufacturing is extended inland towards
Western provinces
Shandong
Zhejiang
Guangdong
Chongqing
 31 mn refrigerators (2011)
 16 mn washers (2011)
 28 mn air conditioners (2011)
 818 ktons synthetic
detergents (2011)
Anhui
 1.72 mn vehicles, thereof
0.9 mn cars (2011)
 40 mn laptops (2012)
Chongqing
Fujian
 Chemical fiber, cotton
spinning and apparel
 400 mn sport shoes,
20% of world output (2012)
Shanghai
12 Emerging Provinces:
 25% of total land area
 47% of China population 2011
 41% of China GDP 2011

CAGR
6.2%
8%
9%
8%
54%
19%
8%
64%
12%
7%
8%
2020
Real chemical production ex. pharma
(in US$ trillion)
2010
Greater China will represent 64% of
chemical market in Asia Pacific in 2020
 China chemical production
2012: US$ 0.6 trillion = 60% of
Asian real chemical
production
 Sustainability becomes
differentiating factor
 Innovations in chemistry will
enable innovations in
downstream industries
 Chemical markets become
more competitive
Greater ChinaJapan South Asia
South Korea ASEAN ANZ
Clockwise from top:
0.8 1.5
2%
1%

Strategic relevant market in Greater China
grows in line with chemical market
Strategic relevant market (SRM) Greater China
(in billion €)
 The SRM in China grows by
~7% p.a. (2010 – 2020), in
line with chemical production
 All industries will contribute to
SRM growth
 BASF´s key customer
industries:
– Chemicals and plastics
– Consumer goods
– Construction
– Health and nutrition
– Transportation
Others
Transportation
Energy & Resources
Health & Nutrition
Chemicals & Plastics
Construction
Consumer Goods
Agriculture
Electronics
0
20
40
60
80
100
120
140
160
2010 2020
~80
155
10%
19%
14%
39%
18%
13%
40%
10%
7%
CAGR
+ 7% p.a.

BASF is well positioned in China in an
increasingly competitive environment
Sinopec ~ €27.2 bn
Annual report 2012:
chemical segment sales
Petrochina €13.7 bn
Annual report 2012:
external sales of „chemicals
and refinery“
ChemChina ~ €10.0 bn
Annual report 2012:
including oil and equipment
business
BASF €6.7 bn China sales 2012; restated
sales 2012:€4.5 billion
Formosa Chemicals €4.8 bn
China sales 2012,
company report
Dow Greater China ~ €4.0 bn
Press releases / BASF
estimate: China sales 2012
Bayer Greater China ~ €3.6 bn
China sales 2012,
company report
Sinofert Holdings Ltd. €2.8 bn 2012 Fortune Data
Mitsui Chemicals €1.8 bn
China sales 2011,
company report
Hengyi Chemical €0.2 bn
China sales 2011,
company report
Sales in Mainland China
in 2011/2012
Major chemical producers in Mainland China

BASF’s extensive Greater China network
guarantees access to major local markets
* One dot may represent more than one site
 21 major wholly-
owned companies
 10 major joint
ventures
 32 production sites
 32 sales offices
 ~ 7,300 employees***,
thereof approximately
1,000 people in
marketing & sales
BASF in Greater China**
Asia Pacific headquarters
Verbund site
Chemical production site
Sales office
Greater China headquarters
Innovation Campus
Legend*
Jiangsu
Taiwan
Liaoning
Jilin
Shandong
Guangdong
Beijing
Zhejiang
Hunan
Hubei
Chongqing
Guangxi
Yunnan
Tianjin
Hong Kong
Shanghai
Nanjing
Sichuan Anhui
Fujian
** incl. JV‘s; as of December 31, 2012 *** adjusted to changes in IFRS 10 & 11

BASF – top provider to international and
local Chinese leaders*
* Logos only represent examples out of wide list of varying customers

* Sales to third parties in China (incl. Hong Kong and Taiwan) by location of customer
 BASF has been a
committed partner to China
since 1885.
 Since 2004, BASF’s sales
more than tripled
 China is third largest market
for BASF globally (after
Germany and the US)
 Business in China is profit
contributor to BASF Group
 EBITDA growing at
CAGR of 30%
Our Chinese business is a powerful
growth engine
0
1
2
3
4
5
6
7
2004
2005
2006
2007
2008
2009
2010
2011
2012
2012r***
0
200
400
600
800
1.000
1.200
1.400
Sales* and EBITDA** in China
Salesinbillion€
EBITDAindexed(2004=100)
CAGR
+17% p.a.
*** 2012r figures restated according to changes in IFRS 10 & 11
,
,
,
** by location of company

„China Green
Companies Top 100“
China Entrepreneur Club
(CEC) - 2012
BASF is a well recognized corporate
citizen in China

 Grow business by ~11% p.a.
 Capture market driven growth
– Accompany customers‘
growth
– Develop business in
emerging provinces
 Strengthen local R&D
 Increase operational
efficiencies
 Increase local production
footprint by implementing
ambitious investment plan
Strategy for 2020
Grow smartly in China
Sales in Greater China*
(in billion €)
0
5
10
15
2012 2012 restated Target 2020
6.7
CAGR
~11% p.a.
5.1
~12

Seize new business opportunities via
industry teams
Industry teams foster cooperation across BASF’s operating divisions
to provide customers with industry specific solutions.
Industry Teams in China
Construction Automotive
Paint &
Coatings
Packaging
Wind
Energy
Food &
Agriculture
Electrical &
Electronics
Pharma
Mining
Textiles

Production of passenger cars and LCVs*
(in million units)
North America
EMEA
Japan
13
18 23
30
8
10
Production 2011; global production 77 million units
Total production in 2020; global production 122 million units
3.7% p.a.
South America
4
7
6.4% p.a.
3.0% p.a.
China
17
337.6% p.a.
other Asia**
12
24
2.5% p.a.
8.0% p.a.
* Light commercial vehicles
China is the largest automotive market,
outperforming global market growth
** comprises South Korea, India, Indonesia, Thailand, Vietnam, Malaysia, Philippines. Source: LMCA
Growth rate p.a.

East Region
Northwest Region Northeast Region
Number of plants: 14
Production 2012: ~3.5 mn units
Production 2012: ~ 2.5 mn units
Number of plants: 7
Middle West Region
South Region
Expected automotive OEM landscape in China 2015
Automotive production in China will be
concentrated in 6 clusters
Source: LMC
North Region

North Region
BASF is a global leader, partnering with
auto producers in China
BASF sites supporting the automotive industry
 Automotive application
center
 Engineering plastics
 Coolants
 Polyurethanes
 Catalysts
 Coatings
 Coatings system supply
Shanghai
Guilin
 Catalysts
Chongqing (2014)
 Polyurethanes
 Polyurethanes
Guangzhou
Tianjin
 Polyurethanes
Changchun
Foshan
Nanjing

Global growth targets
(in billion €)
0
2
4
6
8
10
12
14
16
18
2011 2020
17.0
5.0
12.0
9.5
3.5
6.0
+ 8.0%
+ 4.0%
 BASF well positioned in China
– fastest growing automotive
market
 Focus on international OEMs
and important local producers
 Increased R&D partnerships
with customers at Innovation
Campus in Shanghai
 ~250 BASF people dedicated
to automotive industry in China
+ 6.7%
BASF precious metal sales (trading and mobile emissions catalyst production)
BASF Automotive chemical sales global
Indication BASF Automotive chemical sales China
Chinese automotive customers contribute
strongly to 2020 growth targets

80
100
120
140
160
180
200
220
2009 2010 2011 2012
BASF sales* growth in emerging provinces** in China
(2009 = 100)
 Sales in emerging provinces
almost doubled since 2009
 Emerging provinces account
for ~15% of BASF Greater
China sales (2012)
 Share of business contributed
by emerging provinces to grow
 More business opportunities
by moving closer to customers
 6 sales offices in emerging
provinces
 Close to 100 sales people in
emerging provinces
* including sales out of Joint Ventures
BASF has outstanding record in growing
business in emerging provinces in China
CAGR
Gr. China
~10% p.a.
** Emerging provinces are: Sichuan, Chongqing, Hubei, Hunan, Hebei, Henan, Jiangxi, Anhui, Fujian, Heilongjiang, Liaoning, Tianjin

Chongqing area – strongly growing
industrial and consumer market
 Approx. 30 million people live
in Chongqing
 GDP 2012: ~ USD 185 billion
 GDP growth ’08-’12: 22.2% p.a.
(9.2% for China)
 Key industries
− Electronics and computers
− Automotive
− Engineering
− Robotics
Chongqing

MDI investment project in Chongqing
 MDI market in China to grow
by ~10% p.a. within next
decade up to 3.3 million metric
tons per year (2020)
 New world-scale plant with
capacity of 400,000 metric
tons MDI per year
 Investment: €860 million
 Plant 100% owned by BASF
 Part of integrated complex
 First units to start up by the
end of 2014

Xinjiang province holds the largest
natural gas resources in China
 Xinjiang Uyghur autonomous
region
 Area: 1,660,000 km2
 GDP growth 2012: 12.0%
 Tarim basin is largest Chinese
natural gas field
 Recoverable resources close to
6 trillion cubic meters (source:
International Energy Agency)
 Major West-to-East pipelines
from Turkmenistan and Russia
will go through Xinjiang
Xinjiang
Janggar
Basin
Tarim
Basin

Securing competitive natural gas for
BDO / PolyTHF production
 BASF and Xinjiang Markor
Chemical Industry Co., Ltd.
plan two joint ventures (JV):
JV1: 100,000 mt* Butanediol
JV2: 50,000 mt* PolyTHF
 Location: Korla, Xinjiang Uygur
autonomous region
 Cooperation with partner to
develop chemical production
based on local natural gas
 Benefits for BASF: reliable and
competitive raw material
supply
 Start-up planned for 2015
* metric tons

Korla
Tibet
Qinghai
Inner Mongolia
Heilongjiang
Shandong
Liaoning
Hebei
Sichuan
Henan
Anhui
Nanjing
Jilin
Gansu
Ningxia
Shaanxi
Shanxi
Hubei
Hunan
Zhejiang
Fujian
Jiangxi
Guangxi
Yunnan
Guizhou
Taiwan
Hainan
Beijing
Tianjin
Shanghai
Maoming
Current investment projects  Since 1992 BASF and partners
invested ~€5 billion in China
 Until 2020 BASF and partners
will invest €4 - 5 billion in China
 Major current projects:
– Nanjing: Acrylic acid
(BASF-YPC) SAP
– Chongqing: MDI
– Korla: Butanediol,
PolyTHF
– Shanghai: Coatings
– Shanghai: Catalysts
– Maoming: Isononanol
– Kaohsiung: Catamold®
– Rudong: AgrochemicalsProduction clusters
Selected production sites
Implement €4 - 5 billion investment plan
to move closer to the customers
Chongqing
Rudong
Kaohsiung

0
5
10
15
2012 restated Growth from
announced
projects
Growth from
projects under
consideration
New businesses Target 2020
 Grow business by ~11% p.a.
 Capture market driven growth
 Strengthen local R&D
 Increase operational
efficiencies
 Increase local production
footprint by implementing
ambitious investment plan
 Continue to scout for profitable
investment opportunities
 Continue to grow profits
Strategy for 2020Sales in China*
(in billion €)
Grow smartly in China
5.1
~12

 BASF is strong local player in China:
– local production for the Chinese market
– close to customer
– strong local marketing and sales organization
 Powerful assets in place: world-class production facilities, strong R&D
presence
 Unparalleled partnerships and customer base
 Excellent sustainability record and know-how: a competitive edge
Sales of ~€12 billion by 2020;
Consistent increase in profits
China: Key to BASF’s success in
Asia Pacific

BASF-YPC Company Limited
扬子石化－巴斯夫有限责任公司 BASF Investor Day Asia Pacific, June 5-6, 2013 Ι 1
Stephan Kothrade
President BASF-YPC Company Ltd.
June 06, 2013
Creating competitive advantages
with a Verbund in China

2BASF Investor Day Asia Pacific, June 5-6, 2013 Ι
1 | Building a world-scale Verbund site
3 | Success factors
4 | Further growth plans
2 | Business performance

Nanjing
Shanghai
 5th largest population in China
(79 million people/2012)
 Highly developed infrastructure
 Manufacturing accounts
for >50% of GDP
 Among top 3 in nominal GDP:
5.4 trillion RMB/2012,
17% CAGR 2006-2012
 China’s #1 in Foreign Direct
Investments since 2006
 #1 in per capita income
Jiangsu Province
Jiangsu
Province
Nanjing in Jiangsu province
One of the industry clusters in China

扬子石化－巴斯夫有限责任公司 4BASF Investor Day Asia Pacific, June 5-6, 2013 Ι
 Closeness to customers in one
of the major industry clusters
 Nanjing represents ~5% of the
Chemical Sector in China
 Second largest refining and
ethylene capacities in China
 400 chemical companies,
thereof 120 in Nanjing
Chemical Industry Park
 Lower labor cost than in Tier-1
cities Shanghai and Beijing
Chemical Cluster Nanjing
Nanjing in Jiangsu province
The 2nd largest chemical cluster in China
Nanjing
Downtown
Naphtha Pipeline
Nanjing Chemical
Industry Park
Natural Gas
Station
BASF-YPC

扬子石化－巴斯夫有限责任公司 5BASF Investor Day Asia Pacific, June 5-6, 2013 Ι
 50/50 JV with partner Sinopec,
~US$4.5 bn. (~€3.5 bn.) joint
total investment until 2012
 Capacity: ~ 3 million metric
tons of total production/year
 Steam cracker, 16 plant
clusters, ~2000 employees
 Commercial start-up in 2005,
first expansion in 2011
 BASF representative holds the
BASF-YPC President position,
Sinopec representative holds
the Chairman position
BASF-YPC, heart of our Verbund network in China
The Nanjing Verbund site covers ~340 soccer fields

C3
C2
Ethylene Glycol
Acrylates
Methylamines
C1 Dimethylformamide
Formic Acid
Ethylene Oxide
Acrylic Acid
Oxo-alcohols
Propionic Acid
Propylene
Ethylene
BASF-YPC covers all relevant BASF value chains
Wave 1: Laying the petrochemical foundation
Wave 1
(completed 2005)

C3
C2
Ethylene Glycol
Methylamines
C1 Dimethylformamide
Formic Acid
Ethylene Oxide
Acrylic Acid
Oxo-alcohols
Propionic Acid
Butadiene
C4
2-Propylheptanol
Polyisobutene
Butenes
Isobutene
Ethanolamines
DMA 3
Ethyleneamines
Dimethylethanolamine
Wave 2
(completed 2011)
Acrylates
Propylene
Ethylene
Non-Ionic Surfactants
Wave 2: Downstream expansion
Wave 1

C3
C2
Ethylene Glycol
C1
Ethylene Oxide
Acrylic Acid
Oxo-alcohols
Propionic Acid
C4
2-Propylheptanol
Polyisobutene
Non-Ionic Surfactants
Ethanolamines
DMA 3
Ethyleneamines
Dimethylethanolamine
Wave 1
Acrylates
Glacial Acrylic Acid Superabsorbents
Butadiene
Butenes
Isobutene
Propylene
Ethylene
Methylamines
Dimethylformamide
Formic Acid
Wave 3: Bringing Verbund to full potential
Wave 3
(under construction)
Wave 2

BASF-YPC: ~€3.5 billion total joint capex until 2012
Capital Expenditures
(in million €)
IPS 1 NASAIPS 2 Others
0
100
200
300
400
500
600
700
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

3 | Success factors

Business Performance of BASF-YPC
Sales
(in billion €)
1.72
1.36
1.93
2.76
2.83
0
0.5
1
1.5
2
2.5
3
2008 2009 2010 2011 2012
100%
167%
238%
292%
200%
EBITDA
(indexed)
0%
50%
100%
150%
200%
250%
300%

 Continuous improvement of
operational excellence
 Local project team screens all
production plants, also
infrastructure & services
 BASF delegates infuse tools
and methodology from other
Verbund sites
– technical processes
– automation
– work processes
– organization
– contractor management
Optimization of operational excellence
Production
Plants

3 | Success factors

 Synergies with local
Sinopec subsidiaries
 Sinopec supplies
naphtha and
technical gases to
BASF-YPC
 Sinopec support in
permissions and
government relations
 BASF technologies
 Verbund knowledge
from other BASF sites
 Expertise in optimizing
operational excellence
 BASF-YPC provides
raw materials, utilities
and services to BSNJ
(100% BASF)
BASF-YPC
Company Limited
扬子石化－
巴斯夫有限责任公司
BASF-YPC is a grown partnership

BASF-YPC provides raw materials, utilities and services
Organic
Flocculants
Cationic PolyacrylamideCationic MonomerDMA 3
C3
C2
DimethylamineC1
Methylacrylate
BASF-YPC
Acrylic AcidPropylene
DimethylethanolamineEthylene Ethylene Oxide DMA 3
BASF-YPC
Backbone for BASF’s downstream activities
Utilities
Services
DMA 3
BASF Specialties
Nanjing

 Geographic proximity:
80% of customers within
400 km around Nanjing
 Enhanced market access
through BASF China and
Sinopec sales network
 BASF-YPC’s supplies to
local champions and to
BASF’s global key accounts
Multiple synergies
Customer proximity of BASF-YPC
*
*
*
* Global BASF key account

Recruitment and retention
 Perceived as top employer in
Nanjing; attrition rate only ~2%
 Cooperation with local
universities and colleges
 Successful recruitment from
nationally renowned universities
 Access to qualified personnel
and local talent pool
 Talent development for BASF
in Greater China and beyond
BASF-YPC is perceived as a top employer

BASF-YPC is a role model for EHS in China
Lost Time Injuries – Contractors, Employees
(per million working hours)
1.9
0
0.5 0.45
0.280.3
0.5
0.4
0.2 0.2
0
0.5
1
1.5
2
2008 2009 2010 2011 2012
 BASF-YPC is a benchmark for
occupational & process safety
 Outstanding reputation in
environmental protection
 Participation in BASF’s
occupational health campaigns
 LTI rate at BASF-YPC is lower
than for BASF Group
 Won ‘National Safety Culture
Model Enterprise Award’
High focus on EHS
Contractors Employees

 BASF-YPC sets new standards
for distribution safety; pushing
for double-hull tankers for river
transportation
 BASF-YPC coaches customers
in product stewardship concepts
 Active stakeholder dialogue:
– Annual EHS Report
– Town hall meetings
– Donations
(schools, hospitals)
Looking beyond the fence
BASF-YPC: Frontrunner in stakeholder engagement

3 | Success factors

3rd wave of projects under way
 MOU signed with Sinopec in
December 2010; up to
~US$1 billion joint investment
 Individual feasibility studies
 Projects already in execution:
– New 60 kt SAP plant
– New acrylic acid and butyl
acrylate plants
 Projects under consideration:
– HPPO
– New neopentyl glycol plant
– Expansions of ethylene
oxide, 2-propylheptanol
and non-ionic surfactants
Further expansion at BASF-YPC

 China is projected to remain
the world’s fastest growing
acrylics market: >8% CAGR
 BASF-YPC’s acrylics
expansion will strengthen our
market leadership position
 Cost leadership through
proprietary BASF technology
Share of global Acrylics demand
Example: Highly Attractive Acrylics Value Chain
China will become the global #1 acrylics market by 2020
China will climb to #1 in acrylics
North
America
ChinaEurope RoAsiaJapan RoW
26%6% 6.3 mn t2.8 mn t
2000 2020

Source: BASF Market Intelligence
Baby
78%
Others
2%
1,700 kt
Example: Highly Attractive Acrylics Value Chain
SAP is the biggest growth story in acrylics
Growth in SAP
Adult
Incontinence
17%
* Emerging Markets
Feminine Care
3%
SAP application split (2012)
 Global SAP market ~1,700 kt
 Global growth rate: ~5% p.a.:
– Increasing wealth in EM’s*
– Next-generation baby diapers
– Ageing population (>6% p.a.
in Adult Incontinence segment,
driven by Western markets)
 SAP market in China: High
single-digit growth rate expected
 BASF’s Global Key Accounts
in China gain access to locally
produced SAP with globally
consistent quality

BASF-YPC: Verbund Strength In China
 Nanjing site is a benchmark: World-scale, integrated, low-cost, consistently
profitable
 Customer portfolio includes regional players, national champions, global
BASF key accounts – and wholly-owned BASF Specialties Nanjing
 Growth driven by stepwise capacity expansion and downstream extension
of value chains
 Top employer with low attrition rate
 Frontrunner in Environment, Health & Safety
Powerful platform for further success

扬子石化－巴斯夫有限责任公司

BASF Specialty Chemicals
Mingwei QIN, General Manager
BASF Specialty Chemicals (Nanjing) Co., Ltd.
Investor Day
Asia Pacific
Nanjing, June 6, 2013

BASF Investor Day Asia Pacific, June 5-6 2013 2
1 | Building a best-in-class specialty site
2 | Business and customers

3BASF Investor Day Asia Pacific, June 5-6 2013
 Wholly-owned by BASF
 Composed of Henghai and
Sunrise areas, part of Nanjing
Chemical Industry Park
 Close to BASF-YPC
 Total area: ~ 37 ha
 Available for expansion: 18 ha
 6 plants with total investment:
approx. US$ 200 million
 First production in June 2012
BASF Specialty Chemicals Company
Nanjing
BASF-YPC
Henghai
area
BASF-YPC
Henghai
area
(reserved land)

Multi-function
building
Workshop Pigments
plant
Pigments
plant
Additives
plant
Warehouse
Administration
building
Key products in Sunrise area:
Pigments and paint additives

Key products in Henghai area:
Flocculants and tertiary-Butylamine (t-Ba)
Start-up: June / October 2012
DMA3quat and flocculants plant tertiary-Butylamine plant
Start-up: May 2013

Fast and cost efficient project execution
 18 months from piling to start
 Project costs under budget
 Excellent EHS (environment,
health and safety) record
How has this been achieved?
 Local engineering
 Local procurement of
capital goods
 Closely working project team
► BASF Specialty Chemicals
is a benchmark for successful
project implementation in China

BASF-YPC provides raw materials, utilities and services to Henghai area
Production
Water
Nitrogen Steam
Plant tBA Plant DMA3Q
Ammonia Isobutene DMA3
Fuel
Gas
Demin.
Water
Instrument Air/
Plant Air
Potable
Water
Service
35kV Monitor
BASF Specialty Chemicals benefits from
BASF-YPC Verbund

Implementing BASF global standards
Full compliance with all BASF
EHS and quality standards
 Full compliance with local
regulations
 Implementation of responsible
care system
 No compromise on
environmental protection,
health and safety
 Successfully gained ISO 9001
certificate
 Implementation of integrated
quality management system

BASF Investor Day Asia Pacific, June 5-6 2013 9
1 | Building a best-in-class specialty site
2 | Business and customers

BASF Specialty Chemicals serves
growing downstream specialty markets
Cationic
Flocculants (Zetag® )
Waste water treatment /
paper plants
tertiary-
Butylamine (t-Ba)
Vulcanization accelerators for
rubber and tire production
Pigments /
Additives
Industrial and
Automotive coatings,
Decorative paints
Flocculants tertiary-Butylamine Pigments & Coating Additives 10

Water Stress Health Protection
Sustainable
Energy Growth
Demand for water treatment solutions
grows rapidly in China
Growing industrial
production
Socio-economic megatrends in China

 Zetag® cationic polyacrylamide
flocculants used to efficiently
separate solids (sludge)/liquids
in water treatment processes
 Dry sludge can be used as fuel
to generate energy
 Chinese flocculants market
> €150 million, growing by 8%
p.a.
 First backward integrated
polyacrylamide value chain via
BASF-YPC
 Improved supply reliability and
cost efficiency for Asian market
Zetag® flocculants for waste water
treatment solutions
Flocculants Tertiary-Butylamine Pigments & Coating Additives 12

 Tire production in China driven
by light vehicle production,
replacement tire market and
tire exports
 Tire production to grow by ~7%
p.a., reaching ~500 million units
by 2015
 Tire production drives demand
for vulcanization accelerators
0
100
200
300
400
500
600
2001 2005 2009 2013 2015
335
410
Tire production in China
(in million units)
Increased need for mobility drives tire
production in China
CAGR
~7% p.a.
~500
190
90

 Market size of t-Ba:
~ US$ 50 million (2011)
 New plant serves ~15 growing
customers in China
 Switch from import to local
production shortens lead time by
6 weeks
 Cost efficient production process
based on backward integration
and proprietary technology
 t-Ba process free of waste water
► low environmental impact
 BASF: leading t-Ba supplier
in China
Local production enables BASF to grow
Chinese tertiary-Butylamine business
tertiary-
Butylamine
Mercapto-
benzotriazole
Vulcanization
accelerator TBBS
Tire
production
other
raw materials
Rubber
t-Ba-based vulcanization accelerators reduce cycle time
and energy consumption in tire production

0
2
4
6
8
10
12
14
16
18
2005 2010 2015
Paint and coatings consumption in China
(in million mt)
 Chinese coatings and paint
market will continue to grow
above GDP
 Fastest growing market
segments:
– Architectural coatings
– Industrial coatings
– Automotive coatings
 Main drivers:
– Growth in emerging provinces
– Investments in infrastructure
– Automotive growth
– Environmentally friendly
products
BASF participates in growing Chinese
coatings market
CAGR
12% p.a.
5
9
16

BASF participates in growing Chinese
coatings market
 Pigments and additives add
value (color, properties) to paint
and coating systems
 Production at BASF Specialty
Chemicals reduces lead-time
and improves supply security to
Asian customers
 Local plant with proximity to R&D
center in Shanghai reduces time
to market for new products
 Flexible production set-up allows
BASF to adapt to changing
market conditions
Varnish
PigmentsAdditives
Binders

 Independent, wholly-owned specialty chemicals producer
 World-class site
 Site development is a model for other projects in Asia Pacific
 Focused on high-growth downstream markets:
water treatment, transportation, coatings, …
 Proximity to BASF-YPC: Synergies and lower costs
BASF Specialty Chemicals Nanjing
Powerful local presence: Room to grow

BASF Investor Day Asia-Pacific Nanjing Day 2

BASF Investor Day Asia-Pacific Nanjing Day 2

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BASF Investor Day Asia-Pacific Nanjing Day 2