Strategic alignment of BASF’s plastics business

Dr. Martin Brudermüller Vice Chairman of the Board of Executive Directors of BASF SE

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We create chemistry for a sustainable future

We add value as one company

We innovate to make our customers more successful

We drive sustainable solutions

We form the best team

1

From molecules to materials & solutions

Chemistry as a key technology and interdisciplinary (physics, biology, engineering, etc.)

Development closer to and with customers

New applications with improved properties from established materials

New molecules

Improved applications

Functional materials & solutions

1960 1970 1980 1990 2000 2010 2020

2

Year

Global megatrends call for plastic solutions

Opportunities for plastics Megatrends

Lower emissions through reducing weight of automotives

High-efficiency insulation for buildings

Renewable energy such as wind power and solar

High-performance plastic additives to improve properties

Biobased plastics

Resources, environment and climate

Food and nutrition

Quality of life

3

million metric tons

Continuing strong growth in global demand for plastics

Includes thermoplastics, polyurethanes, thermosets, elastomers, adhesives, coatings and sealants, PP-fibers; not including: PET, PA and polyacrylic fibers

2012 demand by region

Source: PlasticsEurope

0

50

100

150

200

250

300

1950 1960 1970 1980 1990 2000 2010

* Not including other plastics (47 million metric tons)

Global demand

23.4%

19.9%

23.9%

20.7%

12.1% 100% 241 million metric tons*

China World Asia Pacific (not incl. China)

Europe (incl. CIS)

North America

South America,

Middle East, Africa

4 Source: PlasticsEurope

Strategic measures in BASF’s plastics business

Organizational realignment of BASF’s plastics business

Systematic entry into new growth markets like wind energy

Innovative use of renewable feedstock

Innovation as a driver of growth and differentiation

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Organizational realignment of BASF’s plastics business

Petrochemicals

e.g. Amines

e.g. TDI

e.g. monomers

e.g. epoxy systems

e.g. PU systems

e.g. Ultramid ®

Monomers

Intermediates

Petrochemicals

Commodities Functional Materials & Solutions

Performance Materials

Polyurethanes

Performance Polymers

Inorganics

Intermediates

6

Since January 2013

Until 2012

Strengthening our Production Verbund and getting closer to customers through innovation

7

Custom-built solutions Technical service Joint development projects Intensive research Specialties

Cost efficiency and supply security Economies of scale Technology leadership Integrated production Commodities

Strength through world scale Strength through customer closeness

Investments and activities in the downstream specialty business

8

Cast elastomers

Polyamide polymers

Alliance with TenCate & Owen Corning

TPU Lemförde

Ultrason®

PU system houses

Styrolution

ecoflex® Lightweight composites team

Neopor ®

Engineering plastics

Segment and reporting structure focus since January 2013

Crop Protection

Performance Products

Dispersions & Pigments Care Chemicals

Functional Materials & Solutions

Agricultural Solutions

Performance Chemicals

Nutrition & Health Paper Chemicals

Oil & Gas

Oil & Gas

Chemicals

Monomers

Intermediates

Petrochemicals

Functional Materials & Solutions

Construction Chemicals Coatings

Catalysts

Performance Materials

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Wind energy: a growth market with technological challenges

Size Ø: 17-fold Performance: 400-fold

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annual installed capacity (GW)

PBT GF30 non-HR

Market growth

0

10

20

30

40

50

60

70

80

2000 2005 2010 2012 2015 2020

Trends 1980-2020:

Cologne Cathedral

2000 kW

20000 kW

50 kW

1980 Ø 15 m

2000 Ø 112 m

2020 Ø 252 m

Soccer field

Source: BTM WMU 2012

Systematic entry to the growth market of wind energy

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Blade root Composite

Structural adhesive

Shear web Sandwich incl. core material

Spar Composite

Shell Sandwich with core material

Coating Including finishing and repair

Baxxodur ®

Hardened rotor blades Multi-material systems Kerdyn®

Rotor blade model

0

1 1

6

0

1

2

3

4

5

6

7

2009 2010 2011 2016

Biopolymers growth market

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Biopolymer market share 2012

0.4 % of the global plastics market

Source: European Bioplastics/IfBB

Forecast

million metric tons

Global biopolymer capacity

280 m t

Polymers in the BASF portfolio based on renewable resources

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Ultramid ® BALANCE

partially biobased ecovio

®

partially biobased, biodegradable Lupranol® BALANCE partially biobased

BASF mass balance methodology – systematic integration in the Verbund

Cost-effective integration of renewable resources in the existing Production Verbund

Flexible feedstock according to customer demand for nearly every product No loss of product quality Feedstock allocated to certified products Certification by TÜV SÜD

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Market Production Resources

bio- based

fossil

Products

certified conventional

BASF Verbund

Innovation as a driver of growth and differentiation

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Membrane with nanopores

Composite: reactive resin + carbon fibers

1 Chemicals 10% 2 Performance Products 20% 3 Functional Materials & Solutions 20% 4 Agricultural Solutions 25% 5 Oil & Gas 2% 6 Corporate Research, Others 23%

1

2

3

5

6

4

approx. €1.7 bn

Research and development 2012

Strategic alignment of BASF’s plastics business

Dr. Martin Brudermüller Vice Chairman of the Board of Executive Directors of BASF SE

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