Slides BASF Analyst Conference Q3 2012

BASF 3rd Quarter 2012 Analyst Conference Call 1

BASF maintains good business performance

Third Quarter 2012 Financial Highlights October 25, 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 €19.0 billion +8% EBITDA €2.8 billion +4% EBIT before special items €2.1 billion +5% EBIT €2.0 billion +6%

Net income €0.9 billion (21%) EPS €1.03 (21%) Adjusted EPS €1.19 (22%)

Business performance Q3’12 vs. Q3’11

BASF maintains good business performance in Q3 2012

Favorable business development in Agricultural Solutions and Oil & Gas Earnings in chemical activities did not match the previous year’s level

Sales development Period Volumes Prices Portfolio Currencies

Q3’12 vs. Q3’11 7% (4%) (1)% 6%


Ongoing portfolio optimization

BASF is strengthening competitiveness of Construction Chemicals in Europe

Measures include:

- Adjusting business to declining markets in Southern Europe and Great Britain

- Enhancing overall efficiency and customer focus

About 400 positions in Europe are affected

Restructuring of Construction Chemicals

BASF to acquire Becker Underwood $1.02 billion (€785 million) purchase

price Strengthens global crop protection

business Leading global provider of technologies

for biological seed treatment 2012 (E) Sales $240 million (€185

million) Merger control approvals pending

Becker Underwood Asset swap with Statoil

Acquisition of equity in 3 producing fields in Norway: Brage (32.7%), Gjøa (15%), Vega (30%)

2P reserves of ~100 million boe Rise in daily production in Norway

from 3,000 to 40,000 boepd Statoil to receive - 15% in development field Edvard

Grieg - $1.35 billion - up to additional $100 million

depending on success of Vega

Photo: Statoil


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 activities - We do not expect demand to pick up in the fourth quarter 2012 - Therefore, 2012 EBIT before special items of chemical activities will come in below the level of the

previous year.

Outlook 2012

GDP: +2.2% (before: 2.3%)

Industrial production: +2.8% (before: 3.4%)

Chemical production: +2.9% (before: 3.5%)

US$/Euro: 1.30 (unchanged)

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

Assumptions 2012


Chemicals Declining margins and plant shutdowns

Intermediates 767 +14%

Inorganics 485 +36%

Petrochemicals 2,304 +8%

€3,556 +12%

621

381467 436 459

0

200

400

600

800

Q3 Q4 Q1 Q2 Q3

EBIT before special items (million €)

2012 2011

Q3’12 segment sales (million €) vs. Q3’11


Q3’12 vs. Q3’11 4% (9%) 10% 7%


Plastics Significantly weaker margins for polyamide precursors

Polyurethanes 1,655 +12%

Performance Polymers

1,314 (1%)

€2,969+6%


Q3’12 vs. Q3’11 0% (1%) 1% 6%


317

110

219256

218

0

200

400

Q3 Q4 Q1 Q2 Q3


2012 2011


Performance Products Competitive market environment and higher fixed costs

Performance Chemicals

933 +3%

Care Chemicals 1,233 (3%)

€4,015 +1%

Paper Chemicals 410 (3%)


Nutrition & Health 492 +4% Dispersions

& Pigments 947

+2%

440

220

452 446

347

0

200

400

600

Q3 Q4 Q1 Q2 Q3



Q3’12 vs. Q3’11 (2%) (2%) 0% 5%

2012 2011


Functional Solutions Lower volumes and prices in precious metal trading

Catalysts 1,446 (10%)

Construction Chemicals

634 +6%

Coatings 767

+10%

€2,847 -2%


162

88

148134 138

0

50

100

150

200

Q3 Q4 Q1 Q2 Q3



Q3’12 vs. Q3’11 (5%) (5%) 2% 6%

2012 2011


Agricultural Solutions Successful start of season in South America

Q3’12 segment sales (million €) vs. Q3’11 EBIT before special items (million €)

2012 2011

0

50

100

150

200

Q3 Q3

2012 2011

0

500

1.000

Q3 Q3

1,008


Q3’12 vs. Q3’11 3% 0% 0% 8%

171

95

908


Exploration & Production 1,360 +155%

Natural Gas Trading

2,012 +21%

€3,372 +54%

Q3’12 segment sales (million €) vs. Q3’11 EBIT bSI/Net income (million €)

123 225 97322

0

200

400

600

800

1,000

Q3/2011 Q3/2012

1,068

Natural Gas Trading

Exploration & Production

Net income

Non compensable oil taxes (Q3 2011: €0 million; Q3 2012: €492 million)

350 971

Sales development Period Volumes Prices/Currencies Portfolio

Q3’12 vs. Q3’11 60% (5%) 1%

227

Oil & Gas Increased oil production in Libya


Review of “Other”

Million € Q3 2012 Q3 2011 Sales 1,243 1,637 thereof Styrenics - 739

EBIT before special items (331) (21) thereof Corporate research Group corporate costs Currency results, hedges and other valuation effects Styrenics, fertilizers, other businesses

(92) (63)

(247)

31

(86) (58) 104

82

Special items (45) (33)

EBIT (376) (54)


Strong operating cash flow of €5.2 billion

Million € Jan - Sep 2012

Jan - Sep 2011

Cash provided by operating activities 5,156 5,028 thereof Changes in net working capital (667) (1,337)

Cash used in investing activities (2,081) (957) thereof Payments related to tangible / intangible assets (2,780) (2,101)

thereof Acquisitions / divestitures 411 (22)

Cash used in financing activities (3,395) (4,105) thereof Changes in financial liabilities Dividends

(797) (2,593)

(1,727) (2,378)

Free cash flow 2,376 2,927

Operating cash flow: €1.7 billion Free cash flow: €0.6 billion Capex: €1.1 billion Net debt decreased by €0.6 billion to €11.0 billion in comparison to YTD 2011

Third quarter 2012

Slides BASF Analyst Conference Q3 2012

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