BASF Catalyst Division: Driving accelerated growth

1BASF Investor Day Automotive September 5, 2012 Catalysts

BASF’s Catalysts Division: Driving Accelerated Growth

Frank BozichPresident Catalysts Division

September 5, 2012

2BASF Investor Day Automotive September 5, 2012 Catalysts

Catalysts – a strategic fit for BASF

Chemicals18%

Catalysts9%

Plastics15%

Performance Products21%

Other9%

Agricultural Solutions6%

Functional Solutions15%

Oil & Gas16%

€73.5billion

BASF Group sales 2011

3BASF Investor Day Automotive September 5, 2012 Catalysts

1 | BASF a market leader in catalysts

2 | Strategy for growth in automotive

3 | Emerging opportunity in Battery Materials

4BASF Investor Day Automotive September 5, 2012 Catalysts

Global megatrends drive catalysts demand

Tightening regulationsMobile emissions regulations Fuel & environmental regulations

Higher yields Shift in desired industrial outputCleaner and more efficient use of raw material feedstock

Increasing energy costs

Efficient use of crude oil, natural gas, coal and feedstockRaw material change

Innovation is the key to success in the catalysts market; We create chemistry for a sustainable future

Evolving market dynamics

Accelerated shift to BRIC marketsContinually growing industrial capacities

Air quality Process efficiency Energy efficiency Market expansion

5BASF Investor Day Automotive September 5, 2012 Catalysts

Robust growth in catalyst solutions market

*Strategic relevant market (w/o PM) includes mobile emissions catalysts, chemical catalysts and refinery catalysts

Annual catalysts demand (in € billion)

Mobile emissions catalysts

Refinery catalysts

Chemical catalysts

~15.5

~11.6

4.5

4.0

3.1

6.5

5.6

3.3

~24.3

11.6

12.7 Precious metals demand (w/o jewelry)

Catalyst demand (w/o PM)

BASF strategic relevant market BASF strategic relevant market* (w/o PM)

13% CAGR

6% CAGR

2% CAGR

2011 2011 2015

Data source: BASF internal data

CAGR

8% p.a.

6BASF Investor Day Automotive September 5, 2012 Catalysts

BASF – The # 1 global catalysts

solutions provider

7BASF Investor Day Automotive September 5, 2012 Catalysts

BASF has strongest portfolio in the industry – catalysts, materials, services

FCC* catalysts and additives for oil refining

Emissions-control catalysts for cars, trucks, motorcycles

Precious & Base Metal Services

Supports precious metal-based catalyst businesses with full-loop distribution, financial services for Platinum Group Metals (PGMs)

Chemical and polyolefin catalysts plus adsorbents

Mobile Emissions Catalysts

Chemical Catalysts

Refinery Catalysts

New Business Development

Creates new “white space” business ventures in areas such as energy storage, clean air, recycling, catalytic coatings

Current and next-gen battery materials development

* FCC - Fluid catalytic cracking catalysts

Battery Materials

8BASF Investor Day Automotive September 5, 2012 Catalysts

BASF – leading position in global catalysts market

* Overall position in strategic relevant markets excluding precious metals and substrates; includes BASF joint ventures in Japan and Korea

Product group Global positioning* Regional strength

Mobile Emissions Catalysts

# 1 North AmericaEuropeSouth AmericaJapan and KoreaChina India

# 1# 2# 2# 1# 1# 1

Chemical Catalysts # 1 North AmericaEuropeAsia

# 1 # 1# 2

Refinery Catalysts # 3 North AmericaEuropeAsia

# 3# 5# 5

9BASF Investor Day Automotive September 5, 2012 Catalysts

Strong focus on Mobile Emissions Catalysts

Refinery Catalysts

415

Mobile EmissionsCatalysts 2,484

Underlying sales 2011 (in € million)w/o “Precious & Base Metal Services” and precious metals

Chemical Catalysts566

Precious & BaseMetal Services

2,860

RefineryCatalysts

415

ChemicalCatalysts

566

Mobile EmissionsCatalysts1,319

Total sales 2011 (in € million)

€6.4*billion

€2.4*billion

* Including €55 million in other sales

10BASF Investor Day Automotive September 5, 2012 Catalysts

Balanced sales base

* Excludes “Precious & Base Metal Services” and precious metals

Asia25%

South America, Africa, Middle East12%

Sales 2011 by industry*

Europe29%

North America34%

Refinery18%

Other2%

Chemicals24%

Motor vehicles 56%

Sales 2011 by region*

€2.4billion

€2.4billion

11BASF Investor Day Automotive September 5, 2012 Catalysts

Global manufacturing and R&D footprint, with close customer proximity

Netherlands

KoreaJapan

GermanyItalyUSASpain

Brazil

South Africa

IndiaThailand

China

Manufacturing sitesR&D sites

United Kingdom

12BASF Investor Day Automotive September 5, 2012 Catalysts

Strong R&D platform

Global R&D presence

~€131 million in catalysis R&D spend in 2011

Focus on product innovation and aligning regional capabilities to local market needs

>650 catalyst experts globally

Supported by 10,000 scientists in global Verbund

Key facts

Tokyo, Japan (NE Chemcat)

Seoul, Korea (Heesung)Shanghai, China

Hannover, Germany

Ludwigshafen, Germany

Union & Iselin, New Jersey

R&D sites

Beachwood, Ohio

Nienburg, Germany

Guilin, China

Pasadena, Texas

Huntsville, Alabama

De Meern, Netherlands

13BASF Investor Day Automotive September 5, 2012 Catalysts

Sales and profitability development by business

Sales (in € bn)

2.4

EBITDA Indexed

1.81.6

1.4

1.8

Sales (in € bn) EBITDA: avg. 3% .

1.2

2.52.4 2.5

Underlying sales (in € billion)w/o “Precious & Base Metal Services” and precious metals

Sales of “Precious & Base Metal Services” (in € billion)

2.9

14BASF Investor Day Automotive September 5, 2012 Catalysts

1 | BASF a market leader in catalysts

2 | Strategy for growth in automotive

3 | Emerging opportunity in Battery Materials

15BASF Investor Day Automotive September 5, 2012 Catalysts

Growth drivers for Mobile Emissions Catalysts

Global tightening of environmental regulations

– in established and emerging markets

– driving heavy-duty diesel market CAGR of 22% through 2015

Accelerated shift of vehicle manufacturing to BRIC countries

– Chinese automotive production will grow to 26 million units by 2015 which corresponds to 11% CAGR

Ongoing powertrain changes, requiring continuous development of new catalytic solutions

16BASF Investor Day Automotive September 5, 2012 Catalysts

Emissions catalysts market – regulation remains primary demand driver

Light Duty Heavy Duty Motorcycle

USA CA LEV III US Tier 3

US 2010 Global, 4a Global, 4b

EuropeEuro 5 Euro 6 Euro 7

Global, 4a Euro VI Global, 4b Euro VIIEuro 4 Euro 5

BrazilEuro 5 Euro 6

Euro V Euro VI

RussiaEuro 4 Euro 5 Euro 6Euro IV Euro V Euro VI

IndiaEuro 4 Euro 5 Euro 6Euro IV Euro V Euro VIEuro 3 Euro 4 Euro 5

China Euro 4 Euro 5 Euro 6Euro IV Euro V

Euro 3 Euro 4 Euro 5

South Korea

Euro V Euro VI Euro VII

Japan Global, 4a Global, 4b

Vietnam Euro 3 Euro 4

Thailand Euro 42010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Phase in

Announced Regulations Future Regulations

17BASF Investor Day Automotive September 5, 2012 Catalysts

BASF – leading mobile emissions catalysts provider

BASF:

# 1 in light-duty vehicles

# 2 in heavy-duty diesel vehicles

# 2 in motorcycles

Mobile Emissions Catalysts SRM* (in € billion)

10% p.a.

* Strategic relevant market excluding precious metals

22% p.a.

15% p.a.

Light-duty

Motorcycles

Heavy-duty diesel

4.0

6.5CAGR

13 % p.a.

18BASF Investor Day Automotive September 5, 2012 Catalysts

What makes BASF the Mobile Emissions Catalysts market leader?

# 1 in Light-duty # 2 in Heavy-duty diesel # 2 in Motorcycles

Key factors: Technology leadership – matching innovation focus with regulation maturity

Proximity to the customer – local manufacturing, technical services and R&D presence, especially in emerging regions

Greater access to Asia – strong position in Asia through joint ventures in Japan and Korea

Focus on high growth market – heavy-duty diesel vehicles

Leveraging BASF’s inroads – excellent customer relations in global automotive markets

19BASF Investor Day Automotive September 5, 2012 Catalysts

Technology leadership Provider of choice for innovative technology solutions

Saves mass, space and cost by combining four functions in just two components

Selected for Hyundai’s HED-7 concept car

Converts nitrogen oxides (NOx) to nitrogen

High-quality and cost-effective solution for NOx emission control

Controls nitrogen oxides and particulate matter

Superior durability; maintains performance while saving systems space and weight

Diesel Oxidation Catalyst (DOC)/LNT and

SCR on filter

Lean Nitrogen Oxides Trap (LNT)

Selective Catalytic Reduction (SCR) on filter

~38% of Mobile Emission Catalysts sales in 2011 comefrom innovations developed over the last five years

20BASF Investor Day Automotive September 5, 2012 Catalysts

Technology leadership Innovation leader in environmental technology

Global emissions catalysts patent applications (2006 – Q1 2012)

CompetitorsBASF

Number of patents

21BASF Investor Day Automotive September 5, 2012 Catalysts

Proximity to the customerLeveraging local presence and capabilities in China

Estimated annual sales of 25 million passenger cars in China by 2020

BASF is a market leader in China

BASF has leading position among top 5 local OEMs

>20 million catalysts manufactured at integrated Shanghai emissions catalysts and R&D hub since 2000

>€65 million invested in Shanghai-based operations to date

Targeting €54 million in incremental Catalysts division investment in China through 2016

A decade of progress in China

BASF catalysts site in ShanghaiBASF catalysts site in Shanghai

BASF catalysts site in ShanghaiBASF catalysts site in Shanghai

22BASF Investor Day Automotive September 5, 2012 Catalysts

Proximity to the customerExpansions in high-growth mobile emissions catalysts regions

#2 catalysts supplier

Manufacturing capacity expanded at Indaiatuba, Brazil, production site (2008, 2010, 2011)

India growing at 16% CAGR

#1 catalysts supplier

Manufacturing capacity expanded at Chennai, India, production site (2009, 2011)

Brazil growing at 9% CAGR 2011 – 15

BASF catalysts site in BrazilBASF catalysts site in Brazil

BASF catalysts plant in IndiaBASF catalysts plant in India

BASF invested ~€16 million to expand capacities in these high-growth regions since 2006

Targeting €42 million incremental investments in Brazil and India through 2016

23BASF Investor Day Automotive September 5, 2012 Catalysts

Greater access to Asia Strong position in Asia through joint ventures

Joint ventures expand BASF’s Asian leadership:

BASF and JV partners have leading ~30% mobile emissions catalysts market share in Asia

BASF has ~50% share with Japanese and Korean OEMs, e.g. Hyundai and Nissan

Access to a high percentage of global transplant business with leading OEMs

Greater R&D capabilities and collaboration

Location Joint venture

Established Ownership stake

KoreaPartner:

Koo Family, founder of LG Group

1983 BASF 50%

Japan Partner:Sumitomo Metal Mining Co., Ltd

1963 BASF 50%

Heesung Catalysts

Corporation

N. E. Chemcat Corporation

24BASF Investor Day Automotive September 5, 2012 Catalysts

Focus on high-growth market Heavy-duty diesel vehicles

BASF’s current technologies and business

Leading edge technologies for new on-road and off-road regulations

Cost effective state-of-the art technologies for emerging markets

On-road market: Significant new business already awarded to BASF

Off-road market: Gold Certification status at Caterpillar – the #1 player in off-road

Targets

Increase market share in on-road market

Secure leading share with top customers in emerging off-road market

25BASF Investor Day Automotive September 5, 2012 Catalysts

Strong relationship with all major global and regional OEMs

26BASF Investor Day Automotive September 5, 2012 Catalysts

We have won “majority of platform competitions over the 2008 – 2011

timeframe”

27BASF Investor Day Automotive September 5, 2012 Catalysts

1 | BASF a market leader in catalysts

2 | Strategy for growth in automotive

3 | Emerging opportunity in Battery Materials

28BASF Investor Day Automotive September 5, 2012 Catalysts

Electromobility The race to the future

Batteries are the key enabling technology for future mobility

Electromobility supports global sustainable transportation needs and reduced emissions targets

The future of electromobility depends on batteries with higher energy density, greater power, lower cost

Innovative solutions from the chemical industry will determine the future performance of batteries

Battery materials such as cathodes and electrolytes are vital to performance, cost and safety of batteries

29BASF Investor Day Automotive September 5, 2012 Catalysts

All major powertrain visions rely on battery

Electromobility will play a significant role in future automotive alternatives

Fuel tank E-motor Battery ExtenderCombustion

Chemistry is the key enabler

Conventional Mild Hybrid Full HybridPlug-in Hybrid

Range Extender

Full Electric

Ford FusionHonda CR-Z Nissan LeafToyota Prius PHV Chevrolet VoltConventional

0.5 Kwh 2 Kwh 4 Kwh 16 Kwh 24 Kwh

30BASF Investor Day Automotive September 5, 2012 Catalysts

BASF – developing a leading position in battery materials solutions

BASF SRM* (cathodes and electrolytes): >€5 billion market potential by 2020

Battery Materials Activities:Developing advanced cathodes and electrolytes for lithium-ion batteries as well as next generation battery systems

Collaborating with leading universities, institutes & industry partners

Battery Materials Targets:

Position BASF as a leading global solution provider for battery and cell manufacturers

Leverage technology and business synergies, with strong cooperation from battery producers and OEMs

Achieve sales of at least €500 million by 2020

* Strategic relevant market

BASF intends to become a leading player in the global battery materials market

31BASF Investor Day Automotive September 5, 2012 Catalysts

Battery materials acquisitions Extending our capabilities and technical strength

Nickel-Metalhydride (NiMH) batteriesAcquisition of Ovonic Battery Co. (Feb. 2012)

Electrolyte technologiesAcquisition of Merck’s electrolytes activities (April 2012)

Electrolyte formulations for lithium-ionbatteries

Acquisition of Novolyte Technologies (April 2012)

Lithium-sulfur batteriesInvestment of $50 million in Sion Power (Jan. 2012)

32BASF Investor Day Automotive September 5, 2012 Catalysts

BASF: Investing & expanding Targeting a three-digit million Euro investment 2011-2016

Cathode Materials

Investments in Elyria, Ohio; production start-up by end of 2012

Suitable for NCM* materials and next-generation HE-NCM*

Lithium iron phosphate cathode technology

Licensing agreement for production and sale of advanced cathode material used in hybrid vehicles and grid storage batteries

Electrolytes

Extension of BASF’s business with high-purity electrolyte formulations

Acquired global vinylene carbonate license from Mitsubishi Chemical

BASF NCM production plant Elyria, Ohio

BASF research laboratory, Ludwigshafen

* NCM: Nickel Cobalt Manganese, HE-NCM: High Energy Nickel Cobalt Manganese

33BASF Investor Day Automotive September 5, 2012 Catalysts

BASF’s Technology Roadmap – Battery materials technologies for today and tomorrow

Gen1: Gen2: Current

Gen 3:2017

Gen 4: 2022+

Ni-MH***

Li-ion**

Li-ion HV**

Li-S*

*** Ni-MH: Nickel-metal hydrideCurrent activities focused on technology licensing

From Ni-MH to Lithium-Sulfur

Driving range (in km)

* Li-S: Lithium-Sulfur, ** Li-ion: Lithium ion, Li-ion HV: Lithium high voltage

34BASF Investor Day Automotive September 5, 2012 Catalysts

BASF’s Catalysts Division targets 2015

Operational targets

Extend our position as the global leader in catalysis

Maintain our # 1 market position in light duty gasoline vehicles, particularly in emerging Asia

Significantly increase our market share in heavy duty diesel vehicles

Build on our industry-leading technology position

Build a leadership position in global Battery Materials market

35BASF Investor Day Automotive September 5, 2012 Catalysts

Financial targets

Achieve total Catalysts division sales, ex. metals*, of at least €3.0 billion by 2015 (as disclosed in 2011)

Earn a premium on cost of capital** by 2014

BASF’s Catalysts Division targets 2015

* Excluding ‘Precious & Base Metal Services’ and precious metals** Excluding ‘Precious & Base Metal Services’, precious metals and battery materials

36BASF Investor Day Automotive September 5, 2012 Catalysts 36