Charts BASF Analyst Conference Q2 2012

BASF 2nd Quarter 2012 Analyst Conference Call 1

BASF shows solid development

Second Quarter 2012 Financial highlights July 26, 2012


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.

Forward-looking statements


Sales €19.5 billion +6% EBITDA €3.1 billion +4% EBIT before special items €2.5 billion +11% EBIT €2.2 billion +1%

Net income €1.2 billion (15%) EPS €1.34 (16%) Adjusted EPS €1.60 (9%)

Business performance Q2’12 vs. Q2’11

BASF shows solid development Second quarter 2012 highlights

New second quarter record for sales and earnings in Agricultural Solutions Oil & Gas outperformed mainly due to the resumption of oil production in Libya Demand in chemical businesses did not match the strong previous year level Weaker than expected demand in China Overall sales and earnings in H1 2012 came in above H1 2011


Important milestones in Q2 2012

BASF acquired Mazzaferro‘s polyamide polymer business Production of PA 6 and

compounds in Brazil Further strengthening position in

engineering plastics and PA polymers in South America Polymerization plant with a

capacity of 20,000 metric tons

BASF to invest in new chemical production site in Dahej, India Investment of €150 million Production facilities for

polyurethanes, care chemicals, polymer dispersions for coatings and paper Production startup: 2014

Investments in emerging markets

Active portfolio management

BASF acquired Novolyte Technologies Novolyte’s energy storage

activities focused on developing, producing and marketing performance electrolyte formulations BASF now becomes global

supplier of lithium-ion battery electrolyte formulations

Strengthening of technology platform


Outlook 2012 confirmed

For the FY 2012, BASF aims to exceed the record levels of sales and EBIT before special items achieved in 2011

BASF will strive again to earn a high premium on cost of capital

Chemical businesses:

• Given the weak demand outlook, we expect volumes to be flat in H2 2012 vs. H1 2012

• In 2012, EBIT before special items is expected to come in below the level of 2011

Outlook 2012

GDP: +2.3% (before: 2.7%)

Industrial production: +3.4% (before: 4.1%)

Chemical production: +3.5% (before: 4.1%)

US$/Euro: 1.30 (unchanged)

Oil price (US$/bbl): 110 (unchanged)

Revised assumptions 2012


Chemicals Earnings impacted by weaker margins throughout the portfolio

Intermediates 763 +10%

Inorganics 426 +21%

Petrochemicals 2,159 (8%)

€3,348 -1%

674621

381467 436

0

200

400

600

800

Q2 Q3 Q4 Q1 Q2

EBIT before special items (million €)

2012 2011

Q2’12 segment sales (million €) vs. Q2’11

Sales development Period Volumes Prices Portfolio Currencies

Q2’12 vs. Q2’11 (14%) (2%) 10% 5%


Plastics Sequential earnings improvement in challenging environment

Polyurethanes 1,580 +5%

Performance Polymers

1,298 (2%)

€2,878+2%


Q2’12 vs. Q2’11 (5%) 0% 1% 6%


383

317

110

219256

0

200

400

Q2 Q3 Q4 Q1 Q2


2012 2011


Performance Products Higher prices could not fully compensate weak demand vs.Q2 ‘11

Performance Chemicals

944 +4%

Care Chemicals 1,237 (9%)

€4,122 +1%

Paper Chemicals 427 +2%


Nutrition & Health 509 +6% Dispersions

& Pigments 1,005 +7%

513440

220

452 446

0

200

400

600

Q2 Q3 Q4 Q1 Q2



Q2’12 vs. Q2’11 (5%) 1% 0% 5%

2012 2011


Functional Solutions Demand from the automotive industry remained strong

Catalysts 1,620 +8%

Construction Chemicals

621 +8%

Coatings 733

+6%

€2,974 +8%


167 162

88

148134

0

50

100

150

200

Q2 Q3 Q4 Q1 Q2



Q2’12 vs. Q2’11 0% (1%) 3% 6%

2012 2011


Agricultural Solutions Record Q2 sales and earnings driven by strong demand

Q2’12 segment sales (million €) vs. Q2’11 EBIT before special items (million €)

2012 2011

0

200

400

Q2 Q2

2012 2011

0

500

1.000

Q2 Q2

1,467


Q2’12 vs. Q2’11 14% 2% 0% 6%

414 331

1,205


Oil & Gas Strong growth supported by oil production in Libya

Exploration & Production 1,251 +122%

Natural Gas Trading

2,334 +23%

€3,585 +46%

Q2’12 segment sales (million €) vs. Q2’11 EBIT bSI/Net income (million €)

63257

87 213269

0

200

400

600

800

1,000

Q2/2011 Q2/2012

880

Natural Gas Trading

Exploration & Production

Net income

Non compensable oil taxes (Q2 2011: €0 million; Q2 2012: €445 million)

332

793

Sales development Period Volumes Prices/Currencies Portfolio

Q2’12 vs. Q2’11 31% 14% 1%


Review of “Other”

Million € Q2 2012 Q2 2011 Sales 1,107 1,714 thereof Styrenics - 811

EBIT before special items (76) (163) thereof Corporate research Group corporate costs Currency results, hedges and other valuation effects Styrenics, fertilizers, other businesses

(95) (61)

52

13

(87) (59)

(118)

76

Special items (116) 27

EBIT (192) (136)


Strong operating cash flow at €3.5 billion

Million € H1 2012 H1 2011 Cash provided by operating activities 3,460 3,038 thereof Changes in net working capital (651) (1,178)

Cash provided by investing activities (1,084) 81 thereof Payments related to tangible / intangible assets (1,669) (1,265) thereof Acquisitions / divestitures 430 32 Cash used in financing activities (2,198) (2,764) thereof Changes in financial liabilities Dividends

269 (2,462)

(486) (2,278)

Increase in net working capital by €0.7 billion Free cash flow amounted to €1.8 billion Dividend payments to BASF SE shareholders €2.3 billion Net debt decreased by €0.7 billion to €11.5 billion in comparison to H1 2011

First half 2012

BASF 2nd Quarter 2012 Analyst Conference Call

Sales and EBIT before special items by location of company; in million EUR; changes in comparison to Q2 2011

57%

Regional sales and earnings Q2 2012

18% 5%

19% Sales

BASF Group 19.481

Europe

Asia Pacific

South America, Africa, Middle East

North America Sales 11.146 EBIT bSI 1.877

Sales 3.589 EBIT bSI 229

Sales 979 EBIT bSI 54

Sales 3.767 EBIT bSI 330

+9% +33%

+9% -20%

-5% -28%

+1% -36%

Charts BASF Analyst Conference Q2 2012

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