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3rd Quarter 2009 Financial Highlights October 29, 2009

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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.

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1 | Business review2 | Operational excellence at work3 | Outlook

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Further improved performance due to operational strength

• Destocking has come to an end• Asia pushed by economic recovery – in particular China• Successful value before volume strategy• Cost-cutting and efficiency improvements compensating volume decline

Accelerated Ciba integration

Business development Q3 2009

Key figures Q3 2009 vs. Q3 2008• Sales: €12.8 billion (-19%)• EBITDA: €2.0 billion (-8%)• EBIT before special items: €1.2 billion (-20%)• Net income: €237 million (-69%)• Earnings per share: €0.26 (-68%)

Adjusted EPS: €0.61 (-36%)• Operating cash flow 1-9’09: €5.4 billion (+50%)

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In billion €

Cash provided by operating activities Free cash flow** Cash provided by operating activities

less capex (in 2005 before CTA)** According to German GAAP

Strong cash flow generation

• Operating cash flow in1-9’09: €5.4 billion (€1.7 billion in Q3’09)

• Significant reduction of net working capital in1-9'09: €2.0 billion(~€450 million in Q3'09)

• Cash used in investing activities 1-9'09:€3.4 billion

• CAPEX 1-9'09: €1.8 billion

• Net debt reduction in Q3'09: €1.4 billion

-1

0

1

2

3

4

5

6

2001** 2002** 2003** 2004 2005* 2006 2007 2008 1-92009

5.4

3.5

6

-45%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

Chemical Activities* Quarterly development net sales to third parties

* Without Crop Protection, Oil & Gas and Ciba; Europe and South America in Euro; North America and Asia Pacific in US Dollar

Eu

Q4'08 Q1'09 Q2'09 Q3'09

Eu

Eu

EuNA

NA

NA

NA

Baseline: average sales in 2008• Slump in North America

(NA) more pronounced than in Europe (Eu)

7

-45%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

Chemical Activities* Quarterly development net sales to third parties

* Without Crop Protection, Oil & Gas and Ciba; Europe and South America in Euro; North America and Asia Pacific in US Dollar

Eu

Q4'08 Q1'09 Q2'09 Q3'09

Eu

Eu

EuNA

NA

NA

NA

Baseline: average sales in 2008

AP

AP

AP

AP

• Slump in North America (NA) more pronounced than in Europe (Eu)

• Asia Pacific (AP) recovering rapidly

8

-45%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

Chemical Activities* Quarterly development net sales to third parties

• Slump in North America (NA) more pronounced than in Europe (Eu)

• Asia Pacific (AP) recovering rapidly

• Trough in South America (SA) not as deep as in the rest of the world

* Without Crop Protection, Oil & Gas and Ciba; Europe and South America in Euro; North America and Asia Pacific in US Dollar

Eu

Q4'08 Q1'09 Q2'09 Q3'09

Eu

EuNA

NA

NA

NA

Baseline: average sales in 2008

AP

AP

AP

AP

SA

SA

SA

Eu

SA

9

Volumes Portfolio

Q2

+11

Currencies

Q3

+13

Q4

–3

2008

Components of sales developmentChange in % vs. equivalent period of previous year

-8

15

5

-1

17

1

-52

7

-13

1

Q1

–23

-20

2

Prices

2009

-5-13

35

-18

Q2

–23

Q3

–19

-19

15

-6

Sequential comparisonQ3'09 vs. Q2'09

BASF Group:• Volume: +3%• Prices: 0%• Portfolio: +1%• Currencies: –1%

Chemical Activities:• Volume: +8%• Price: +4%

Oil & Gas: • Volume: +9%• Price: –15%

Decline in demand softened, but increasing pressure on prices

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Chemicals Q3 vs. Q2'09Sales and EBIT before special items, in million €

EBIT before special items

• Q3'09 vs. Q2'09: Volumes +4%, prices +9%, portfolio 0%, currencies –3%[Q3'09 vs. Q3'08: Volumes –11%, prices –24%, portfolio 0%, currencies +1%]

• Improved earnings in all divisions due to cost cutting and value over volume strategy• Petrochemicals: demand and pricing positively impacted by temporary shortages for

olefins and acrylic derivatives; higher raw material costs successfully passed on.• Inorganics and Intermediates: Higher demand from key customer industries like

electronics, textile, coatings and plastics.

401

104 84

258364

0

100

200

300

400

Q32008

Q42008

Q12009

Q22009

Q32009

Petrochemicals+10%

Inorganics+11%

Intermediates+12%

Total sales: €2,000 million: +10.6%

262500

1,238

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Plastics Q3 vs. Q2'09Sales and EBIT before special items, in million €

• Q3'09 vs. Q2'09: Volumes +10%, prices +5%, portfolio 0%, currencies –3%[Q3'09 vs. Q3'08: Volumes –4%, prices –18%, portfolio 0%, currencies +2%]

• Considerable earnings improvement driven by cost cutting and price/margin management.• Performance Polymers: strong growth driven by Engineering Plastics. Higher prices for

polyamides, intermediates and foams.• Polyurethanes: stronger demand for MDI and TDI in all regions, especially Asia; global

margin improvements for TDI.

Polyurethanes+12%

PerformancePolymers+12%

Total sales: €1,967 million: +12% EBIT before special items

198

-282

138216

-29

-300-200-100

0100200300

Q32008

Q12009

Q22009

Q32009

843

1,124

Q32008

Q42008

Q12009

Q22009

Q32009

12

Performance Products Q3 vs. Q2'09Sales and EBIT before special items, in million €

• Q3'09 vs. Q2'09: Volumes +8%, prices 0%, portfolio +3%, currencies –2%[Q3'09 vs. Q3'08: Volumes –8%, prices – 6%, portfolio +38%, currencies +1%]

• Q3'09: positive sales and earnings development thanks to improved demand in some customer industries, price/margin containment and cost reduction measures.

• Positive earnings contribution from former Ciba activities before integration costs.• Care Chemicals: record earnings driven by vitamins and surfactants.• Higher volumes and improved margins in Performance Chemicals.• Stabilization in Paper Chemicals.

Dispersion & Pigments+4%

Care Chemicals+9%

PaperChemicals

+15%

Total sales: €2,651 million: +8.5% EBIT before special items

PerformanceChemicals+10%

221

115 12380

286

0

100

200

300

Q32008

Q42008

Q12009

Q22009

Q32009

700663

896

392

Q32008

Q42008

Q12009

Q22009

Q32009

13

Functional Solutions Q3 vs. Q2'09Sales and EBIT before special items, in million €

• Q3'09 vs. Q2'09: Volumes: +9%, prices: +1%, portfolio: 0%, currencies: –2%[Q3'09 vs. Q3'08: Volumes –12%, prices –13%, portfolio 0%, currencies +1%]

• Catalysts: improved sales and earnings in automotive catalysts due to car scrapping programs. Chemical catalysts continue to be weak.

• Construction Chemicals: slight sales growth in all regions except Middle East; earnings up due to higher prices and lower fixed costs.

• Coatings: higher demand for automotive and decorative paints, stable prices and lower fixed costs supported higher margins.

Catalysts+16%

ConstructionChemicals

+1%

Coatings+3%

Total sales: €1,888 million: +7.6% EBIT before special items

117

-103-46

48106

-100

-50

0

50

100

150

Q32008

Q12009

Q22009

Q32009

543

557

788

Q32008

Q42008

Q12009

Q22009

Q32009

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Agricultural Solutions 1-9'09 vs. 1-9'08Sales and EBIT before special items, in million €

• 1-9'09 vs. 1-9'08: Volumes -3%, prices +6%, portfolio +1%, currencies +3%[Q3'09 vs. Q3'08: Volumes –6%, prices +2%, portfolio +1%, currencies +1%]

• Sales in Q3'09 vs. Q3’08 minus 2% due to adverse weather conditions as well as lower commodity prices (corn and wheat); positive earnings maintained.

• Higher fixed costs related to R&D and intensified marketing and sales activities. • Good start of growing season in South America.• Potential block-buster herbicide Kixor approved in USA.

Fungicides+7%

Insecticides+7%

Herbicides+8%

Total sales: €2,943 million: +7.4%* EBIT before special items

653 732

0

200

400

600

800

1-9'08 1-9'09

1,021

590

1,332

12%

*Sales growth: +3% in constant exchange rates and continued portfolio

15

905622 471 469 467

-200

0

200

400

600

800

1,000

Q32008

Q42008

Q12009

Q22009

Q32009

Oil & Gas Q3'09 vs. Q3'08Sales and EBIT before special items, in million €

• Q3'09 vs. Q3'08: Volumes 3%, prices/currencies –29%, portfolio 1% [Q3'09 vs. Q2'09: Volumes +9%, prices/currencies –12%, portfolio 0%]

• E&P: Sales and earnings decreased due to significantly lower oil price (–38% in €/bbl).• Natural gas production increased by 24%; Yuzhno Russkoye achieved plateau-production;

Oil production dropped due to lower OPEC production quota in Libya.• Natural Gas Trading: increased sales volumes could not compensate for 25% lower

prices. • Q4'09 earnings of Oil & Gas expected to be on the level of Q2 and Q3 2009.

E&P–37%

Gas Trading–15%

Total sales: €2,389 million: –24.9% EBIT before special items

E&PGas Trading

870 964

–35

342

37

725 506 550

254831,498

891

Q32008

Q42008

Q12009

Q22009

Q32009

16

Q32009

Q22009

1,280 1,118

604

(257)

Group corporate costs (54) (56)

Currency results, hedges and other valuation effects

(92) (236)

(78)

107

Special items (96) (55)

(312)

Thereof Styrenics 696

Thereof

Corporate research (81)

Styrenics, fertilizers, other business 43

EBIT before special items (295)

EBIT (391)

Sales

Million €

OtherSales and EBIT

Comments• Higher sales and solid

earnings contribution from Styrenics

• Small gain from hedging

• Higher accruals for BASF option program (BOP) given strong share price increase

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1 | Business review2 | Operational excellence at work3 | Outlook

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Annual earnings contribution in million €

0

500

1,000

1,500

2,000

2,500

2003 2004 2005 2006 2007 2008 2009E 2012E

Sustainable improvement of cost baseEfficiency program NEXT

• New EXellence Targets (NEXT): >500 individual projects to simplify processes, structures and production sites in all regions

• Project timeline:2008 – 2011

• Estimated earnings contribution in 2009:~€300 million

• Targeted earnings contribution by 2012:>€1 billion

Completed restructuring programs NEXT

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Ciba integration - Increased synergy target of at least €450 million

Synergies roughly equally allocated to

• Corporate functions

• Production

• Marketing & sales

• R&D

• Procurement

Additional synergies are related to corporate functions and procurement

Synergy ramp-upin million €

Synergies in percent of sales (2008: €4.0 billion)

Note: Ciba revenues 2008: CHF5,919 million or €3,986 million

290

100

450

600

100

200

300

400

500

end 2009 end 2010 2011/2012 Steady State

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New target: at least €450 million

≥5

0

7.5

2.5

12.5

20

Ciba – Increased synergy potential and implementation ahead of schedule

Cost synergies

Net reductionof positions

Non-production siteconsolidation

Communication Q2

CommunicationQ3 Trend

Effective 2009 in million € 40 60

350

≥ 450

11%

> 500

3,800

33

56

Total 3,700

Run rate end of 2010 in million € 300

Total steady state end of 2012 in million €

≥ 400

In % of Ciba revenue 2008 10%

Until end of 2009 350

Non-production site consolidation until end of 2009

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Total number of non-production sites to be consolidated

36

Production site

consolidation

• 23 sites currently under strategic review, i.e. closure, divestiture or restructuring possible: decision in Q1'10

• 32 production sites planned to be optimized and/or restructured

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1-9‘2009 2009 2010 – 2012Integration costs 470

457

208

118

131

300

thereof special items

800

720

208

176

336

-

-

150

150

thereof- step-up of inventories- accelerated depreciation

of IT system

- restructuring

Integration costsin million €

Ciba integration costs

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1 | Business review

2 | Operational excellence at work

3 | Outlook

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The economic recovery remains slow and fragile

• Positive impulses from Asia, especially China and from South America

• Business conditions in U.S. and Europe stabilizing

• Still high uncertainty about sustainability of recovery, structural problems continue to exist e.g. overcapacities

• Risks because of continued lending restrictions by commercial banks, increasing insolvencies and unemployment as well as weakening of US$

• Basic assumptions for entire year 2009– Decline in global gross domestic product (–2.5%), global industrial

production (–9.1%) and global chemical production* (–6.1%)– Average exchange rate of $1.40 per €– Average oil price of $60/bbl

• Continuing

* Without pharma

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Q4:• Sales at the level of Q3’ 09. EBIT before special items expected to

come in above Q4’ 08 but below Q3’ 09.

Full year:• We anticipate a significant decline in sales and earnings.• Ciba integration accelerated. Higher integration costs will negatively

impact earnings.• Therefore, BASF is unlikely to reach its goal of earning its cost of

capital in 2009.

Outlook 2009

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