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BASF Roundtable Agricultural Solutions, November 12, 2012

Verbund Synergies Agro Growth via Innovation Group Results Group Strategy 1

Agricultural Solutions Sustainable growth through market-driven

innovations

BASF

Roundtable

Agricultural

Solutions

November 12, 2012

London


2

Disclaimer

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.

3

1 | Introduction

Dr. Andreas Kreimeyer

Member of the Board of Executive Directors

2 | BASF Crop Protection

3 | BASF Plant Biotechnology

4

1 | BASF maintains good business performance

in Q3 2012

2 | ‘We Create Chemistry’ strategy on track;

Agricultural Solutions is a key contributor

3 | Agricultural Solutions offers attractive growth

opportunities with strong commitment to

innovation



Q1-Q3’12

€59.1 billion

€9.8 billion

€7.1 billion

€7.4 billion

€3.9 billion

€4.25

€4.36

vs. Q1-Q3’11

+7%

+8%

+2%

+11%

(23)%

(23)%

(16)%

Favorable business development in Agricultural Solutions and Oil & Gas

Earnings in chemical activities did not match the previous year’s level

BASF maintains good business

performance in Q3 2012

Q3’12

€19.0 billion

€2.8 billion

€2.1 billion

€2.0 billion

€0.9 billion

€1.03

€1.19

vs. Q3’11

+8%

+4%

+5%

+6%

(21)%

(21)%

(22)%

Business Performance

Sales

EBITDA

EBIT before special items

EBIT

Net Income

EPS

Adjusted EPS

Sales development

Period Volumes Prices Portfolio Currencies

Q3’12 vs. Q3’11 7% (4%) (1%) 6%

Favorable business development in Agricultural Solutions and Oil & Gas

Earnings in chemical activities did not match the previous year’s level



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

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

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

Becker Underwood Restructuring of

Construction Chemicals

Asset swap

with 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

8


in Q3 2012





innovation



Chemistry as an enabler

BASF has superior growth

opportunities: Innovation,

sustainability, Emerging

Markets, …

Long-term value creation,

ambitious financial targets

The #1 chemical company.

2011: €73.5 billion sales,

€8.4 billion EBIT bSI

#1- #3 in >75% of business,

present in >200 countries

Production in 41 countries,

6 integrated Verbund sites

10 years of outperformance

16% average annual stock

performance*

15% average annual

dividend increase, >3%

yield every single year**

Performance

BASF – The Chemical Company. We create

chemistry for a sustainable future

Perspective

* Nov. 2002 - Oct. 2012

** For 2002-2011

Ludwigshafen,

Germany

Antwerp,

Belgium

Nanjing,

China

Kuantan,

Malaysia Geismar,

USA

Freeport,

USA

Verbund site

Positioning



‘We Create Chemistry’ strategy defines

clear financial targets for 2015 and 2020

Grow at least 2 percentage

points above chemical

production

Earn a premium on cost of

capital of at least €2.5 billion on

average p.a.

Profitability targets Growth targets

2015

2020

Sales ~€85 billion

Sales ~€115 billion

EBITDA ~€15 billion

EPS ~€7.50

Double EBITDA to ~€23 billion

(compared with 2010)



Demographic challenges set the stage

for the future of the chemical industry

Nine billion people in 2050 but only one earth

Resources, Environment &

Climate

Food & Nutrition Quality of life

Chemistry as an enabler



We expand from chemicals to chemistry

Chemistry as key enabler for

functionalized materials &

solutions

Deep understanding of

customer value chains

required

Agricultural Solutions

perfectly matches BASF’s

focus on solutions business

1960 1970 1980 1990 2000 2010 2020

New molecules

Improved applications

Functionalized materials & solutions



BASF Crop Protection’s offering goes

beyond weed, disease and pest control

Commodity Prices

Sustai- nability

Risk management Exchange Rate

External factors

Frost Drought Water Nutrition Soil

Stress

Heat

Innovation beyond

Crop Protection

Weeds Diseases

Natural foes

Pests

Crop

Protection

Resources



BASF Plant Science –

Trait Technology Partner

Growers

Concept and strengths

BASF has focused on trait

technologies early on

Cutting-edge technology

and trait portfolio attracts

top partners (seeds, food)

Products to be marketed

via our partners’ channels

Partnership business model

provides high flexibility and

keeps asset costs low

Trait

Technology

Partner

Plant Science

Trait &

Seed

Partners



Multiple synergies between Agricultural

Solutions and BASF Verbund

Non-cyclical,

adds earnings

resilience

Technological

synergies

through

Know-how

Verbund


Strong

contributor

to BASF‘s

profitable

growth

Backward-

integration

and

sourcing

synergies



EBIT before special items

in billion €

0

0,2

0,4

0,6

0,8

1

2006 2007 2008 2009 2010 2011 2012Q1-Q3

Agricultural Solutions has increased its

earnings contribution to BASF sustainably

EBIT bSI more than doubled

from 2006 to 2011

New record in 2011: €810

million

FY 2011 record has been

already significantly surpassed:

Q1-Q3 2012: €1,004 million

Sustainably increased earnings



Strong business performance

Profitable growth over the past 5

years; high EBITDA margin level

since 2004

EBITDA margin target:

25% on average

Committed to sustain the high

margin level ...

... while continuing to invest into

innovation, leveraging BASF‘s

know-how Verbund

* Before Special Items.

2004 onwards according to IFRS. 2006 onwards excl. corporate cost

Agricultural Solutions has demonstrated

profitable growth and sustained margins

Sales to 3rd parties in billion €

EBITDA margin*



Oil & Gas


Chemicals business

0

2

4

6

8

10

12

2002 2004 2006 2008 2010

Agricultural Solutions is adding to BASF

Group’s earnings resilience

Agriculture not coupled to

chemical cycle

Agricultural Solutions delivered

substantial contribution even in

2009 trough

Agro adds to earnings resilience EBITDA by activity (excluding Other)

in billion €



in million €

from 3rd parties

64%

Sourcing of Top-100 raw materials* (by value) in 2011

from Verbund

36%

Make or buy

Verbund back-integration

– security & flexibility of supply

– market-based transfer pricing

– typically ~40% of the Top-100

raws come from Verbund

Sourcing synergies

– economy of scale via joint

BASF procurement

Capex

– capex will increase to >€250

M/y in 2012-2016 (on average)

– insourcing of advanced

intermediates

– capacity expansions

€515

million

Our growth in Crop Protection is backed

by a high level of backward integration

Capex in million €/a

0 100 200

2012-2016

2007-2011

* Without a.i. tolling, formulants, packaging



Total R&D expenditures 2011

in billion €

Large share of R&D spending committed

to Crop Protection, Plant Biotechnology

€1.6 billion R&D expenditures in

2011, ~€1.7 billion in 2012

2020 target: ~€30 billion in sales

with innovations <10 years

10,100 people; 2,800 projects

Research Verbund ~1,950

partnerships with universities,

start-ups, industry partners

Agro benefits from Know-how

Verbund synergies, especially

in process design, formulation

technologies, biotechnology

Functional

Solutions

12%

Other Corp. R&D

12%

Chemicals

8%

Agricultural

Solutions

26%

Plastics

9%

Performance

Products

21%

Oil & Gas

1%

Chemicals Business

Plant Biotech

11%

€1.6 billion

Strong innovation platform

21


in Q3 2012





innovation



To stimulate further growth in Agriculture,

we pursue two promising Growth Fields

Resources, Environment & Climate Food & Nutrition Quality of Life

* Including growth fields still under evaluation

Consumer Goods

Chemistry as Enabler

Transportation Health & Nutrition

Construction Electronics Agriculture Cu

sto

me

r In

du

str

ies

Energy Management

Water Solutions

Wind Energy

Rare Earth Metals Recycl.

Heat Management

Enzymes Plant

Biotechnology Batteries for

Mobility

Lightweight Composites

Heat Management

Functional Crop Care

Medical Organic

Electronics

Gro

wth

F

ield

s*

Energy & Resources

Growth fields at different stages, >€500 million sales each expected at maturity



BASF Plant Science

founded (1998)

Acquisition of

CropDesign (2006)

Foundation of

Metanomics (1998)

2010 1995 2000

BASF Plant Science founded in

1998 as a subsidiary of BASF

Strong trait technology platform

was created, highly attractive to

partners

Prime example: Yield & Stress

collaboration with Monsanto

ranks #1 in Patent Asset Index

A strong trait technology platform Patent Asset Index* for Yield & Stress Traits

BASF Plant Sciences has generated a

leading technology platform

0 200 400 600 800 1000 1200

DuPont

Mendel

Bayer

Ceres

BASF/

Monsanto

2010

2009

2011

Partnership

with

Partnership

with

Partnership

with

* methodology: Prof. Ernst, WHU, based on the portfolio size (# patent families)

and competitive impact (# citations in other patents; market coverage)

24

Important contributions to BASF Group

– profitable growth

– stable earnings

Integrated in BASF Verbund

– cost synergies

– know-how synergies

Important role in reaching goals of our We Create Chemistry strategy

– customer focused solutions offer

– innovative & sustainable solutions

Agricultural Solutions is a star in our portfolio


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