BASF FY2011 results

BASF 4Q/FY’2010 Conference | February 24th, 2011

BASF: Fit for 2012 and beyond 4Q/FY’2011 Analyst Conference Ludwigshafen, February 24, 2012

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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

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Highlights 2011

Outlook 2012

Financials Q4 2011

1

2

3

Agenda

4

Record year 2011

Business performance Q4’11 vs. Q4’10 FY’11 vs. FY’10 Sales €18.1 billion +10% €73.5 billion +15% EBITDA €2.9 billion +7% €12.0 billion +8% EBIT before special items €1.5 billion -14% €8.4 billion +4% EBIT €1.9 billion +15% €8.6 billion +11% Net income €1.1 billion +3% €6.2 billion +36% Reported EPS €1.23 +3% €6.74 +36% Adjusted EPS €1.05 -24% €6.26 +9% Operating cash flow €2.1 billion +80% €7.1 billion +10%

Sales development Period Volumes Prices Portfolio Currencies

Q4’11 vs. Q4’10 (1)% 9% 2% 0%

FY’11 vs. FY’10 0% 12% 5% (2)%

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Major achievements in 2011

Investments: Start-up of Nanjing expansion Commissioning of Nord Stream and the OPAL pipeline

Portfolio management: Completion of Cognis integration Start of business of Styrolution JV with Ineos Divestiture of K+S shares and agreement to sell fertilizer assets (Antwerp)

Operational excellence: Completion of NEXT program – annual earnings contribution of more than

€1 billion as of 2012

Strong and profitable growth in emerging markets

0

20

40

60

2001

28 Developed markets*

Emerging markets

* BASF definition: Developed markets include EU15, Norway, Switzerland, North America, Japan, Australia, New Zealand

22%

Sales BASF Group excluding Oil & Gas in billion € by location of customer

2011

34%

61

6

7

€2.6 billion premium on cost of capital achieved in 2011 Premium on cost of capital in billion €

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

4,000

3,000

2,000

1,000

0

-0.6 -0.6

2.0 2.4

2.1

2.9

1.6

-0.2

3.5

2.6

Target first established

Cost of capital rate: 9% 11%

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Average annual dividend increase of 15.2% (2002-2011)

Attractive dividend yield of 4.6% in 2011**

Dividend yield above 3% in any given year since 2002

3.9%

Attractive shareholder returns

Key facts Dividend per share (€)

0.70 0.700.85

1.00

1.50

1.95 1.951.70

2.202.50

0.0

0.5

1.0

1.5

2.0

2.5

2002 2005 2008 2011

0.50

1.00

1.50

2.00

3.1%

* Dividend yield based on share price at year-end

3.2% 3.1% 4.1% 3.8% 7.0% Yield*

** Based on BASF share price of €53.89 on Dec 30, 2011

Proposal:

3.7%

2.50

3.9% 4.6%

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Delivering consistent, long-term value

Long-term performance January 2002 – December 2011 (average annual performance with dividends reinvested)

+7.2%

-1.9%

+14.1%

-3 0 3 6 9 12 15

BASF

Euro Stoxx 50

DAX 30

MSCI World Chemicals

+1.3%

Last 5 years

+12.5%

–7.4%

–2.2%

+2.4%

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Highlights 2011

Outlook 2012

1

2

Agenda

Financials Q4 2011 3

11

Outlook 2012 Expectations for global economy

2011

GDP 2.7%

Chemicals (excl. Pharma) 4.8%

Industrial production 4.7%

US$ / Euro 1.39

Oil price (US$ / bbl) 111

Forecast 2012

2.7%

4.1%

4.1%

1.30

110

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Outlook 2012 by region Chemical production (excl. pharma)

EU-27

USA

Asia (excl. Japan)

Japan

South America

4.1%

0.8%

2.2%

8.0%

3.4%

3.9%

World 4.8%

1.6%

2.1%

11.1%

-3.1%

4.7%

2011 Forecast 2012

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Outlook BASF Group 2012

BASF Group aims to exceed the record levels of sales and EBIT before special items achieved in 2011.

In H1 2012, BASF will most likely not achieve the exceptionally high results of the comparable period in 2011. However, we aim to outperform H2 2011.

More specifically, we plan to increase sales and earnings in all our business segments with the exception of the segment Chemicals.

In 2012, BASF will strive to earn again a high premium on cost of capital.

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Highlights 2011

Outlook 2012

1

2

Agenda

Financials Q4 2011 3

15

Chemicals Price increases could not compensate for lower volumes

Intermediates 631 -4%

Inorganics 355

+9%

Petrochemicals 2,136 +9%

€3,122 +6%

537

381

0

200

400

600

Q4 '10 Q4 '11


Q4’11 vs. Q4’10 (8)% 7% 6% 1%

FY’11 vs. FY’10 (1)% 16% 2% (3)%

Q4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €)

2,4412,302

0

1,000

2,000

FY '10 FY '11

16

Plastics Weaker demand led to receding margins

Polyurethanes 1,395 +2%

Performance Polymers

1,178 +8%

€2,573+5%


Q4’11 vs. Q4’10 (3)% 6% 1% 1%

FY’11 vs. FY’10 4% 10% 0% (2)%


285

110

0

100

200

300

Q4 '10 Q4 '11

1,2031,284

0

400

800

1.200

FY '10 FY '11

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Q4’11 vs. Q4’10 (6)% 6% 19% 0%

FY’11 vs. FY’10 (1)% 6% 25% (2)%

Performance Products Earnings burdened by destocking and integration costs

Performance Chemicals

822 +6%

Care Chemicals 1,180 +55%

€3,629 +19%

Paper Chemicals 390 -4%


Nutrition & Health 442 +15%

Dispersions & Pigments

795 +9%

294

220

0

100

200

300

Q4 '10 Q4 '11

1,7271,554

0

500

1,000

1,500

2,000

FY '10 FY '11

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Q4’11 vs. Q4’10 6% 8% (1)% (1)%

FY’11 vs. FY’10 9% 10% 1% (3)%

Functional Solutions Continuous strong earnings improvement

Catalysts 1,595 +17%

Construction Chemicals 536

+4%

Coatings 739

+8%

€2,870+12%


33

88

0

20

40

60

80

100

Q4 '10 Q4 '11

467

559

0

200

400

600

FY '10 FY '11

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Agricultural Solutions Another record year for Crop Protection


0

200

400

600

800

1,000

Q4 Q42011 2010


Q4’11 vs. Q4’10 (5)% 2% 0% 0%

FY’11 vs. FY’10 6% 0% 0% (3)%

845 822 42 41

0

10

20

30

40

50

Q4 '10 Q4 '11

749810

0

300

600

900

FY '10 FY '11

20

Oil & Gas Higher oil prices improved sales and net income

Exploration & Production 1,017 -4%

Natural Gas Trading

2,923 +53%

€3,940 +33%

Sales development Period Volumes Prices/Currencies Portfolio Q4’11 vs. Q4’10 7% 25% 1%

FY’11 vs. FY’10 (11)% 23% 0%

EBIT bSI Natural Gas Trading EBIT bSI Exploration & Production

Net income

Q4’11 segment sales (million €) vs. Q4’10 EBIT before special items / Net income (million €)

564

713 685

230276

0

200

400

600

800

Q4 '10 Q4 '11

2,1112,430

923 1,064

0

500

1,000

1,500

2,000

2,500

FY '10 FY '11

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Review of “Other” Million € Q4 2011 Q4 2010 2011 2010

Sales 1,112 1,590 6,275 5,851

thereof Styrenics 714 2,393 2,848

EBIT before special items (11) (139) (404) (648) thereof Corporate research Group corporate costs Currency results, hedges and other valuation effects Styrenics, fertilizers, other businesses

(92) (74)

(107)

65

(96) (66)

(229)

142

(348) (246) (199)

408

(323) (226) (460)

387

Special items 623 149 582 (59)

EBIT 612 10 178 (707)

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0

1

2

3

4

5

6

7

8

9

1.5

0.5

(3.4)

(1.8)

7.1

(2.5)

2.0

* Payments related to intangible assets and property, plant and equipment

Cash 12/31/10

Operating CF

Capex* Acquisitions & Divestitures

Dividends Other cash inflows

Cash 12/31/11

Excellent operating cash flow in 2011

Full Year 2011 (billion €)

Debt reduction

(2.4) 1.2

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Balance sheet remains strong

Balance sheet 2011 vs. 2010 (billion €)

Liquid funds

Accounts receivable

Long-term assets

25.4

13.0

22.8

34.1

10.9

2.0

Other liabilities

Financial debt

Stock- holders’ Equity

Dec 31 2010

Dec 31 2010

Dec 31 2011

Dec 31 2011

61.2

34.5

10.2

1.5

61.2

22.7

15.0

21.7

Inventories

Other assets

8.7

4.5

10.1

4.1

59.4 59.4

Highlights 2011 Reduction of long-term assets

by €0.4 billion, thereof – €1.1 billion in other financial

assets – €0,5 billion increase of at

equity investments

Addition of – €1.4 billion of inventories – €0.7 billion of receivables

Equity ratio of 41.5%

Net debt: €11.0 billion

Net debt EBITDA ratio: 0.9

million € FY 2011 FY 2010 ∆% ∆% CER Sales* 4,165 4,033 3% 6%

EBITDA** 983 938 5% 11%

EBITDA margin** 23.6% 23.3% - -

EBIT** 810 749 8% 16%

EBIT margin** 19.4% 18.6% - -

Assets (as of Dec. 31) 5,350 5,063 6% 6%

Research and development expenses 412 393 5% 6% * sales drivers 2011: volumes 6%, prices 0%, currencies -3% ** before special items CER = at constant exchange rates

Sales and earnings record despite currency headwinds. Q4 2011 prices +2%

BASF Crop Protection Financial results FY 2011

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Total sales 2011 to third parties Fungicides:

Global volume gains supported by high demand in emerging markets, Plant Health business. Xemium launch started in EU Herbicides:

Higher emerging markets demand overcompensates lower sales in North America Insecticides:

Continued growth in most product lines (e.g. Seed Solutions®), portfolio optimization

Fungicides 1,904 (+12%)

Herbicides 1,401 (+2%)

Insecticides/Other 860 (+1%)

Key facts

€4,165 (+6%)

In brackets growth at constant exchange rates in % vs. prior year

Sales growth particularly driven by fungicides

in million €

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BASF Crop Protection Sales by indication FY 2011

Total sales 2011 to third parties Key facts Europe:

Strong growth contribution from herbicides, Eastern Europe North America:

High demand for Plant Health products. Herbicide business affected by acreage reductions, competition in imidazolinones South America, Africa, ME:

Intense use of Fipronil-based insecticides, AgCelence® thrived Asia Pacific:

Significantly increased demand for fungicides and herbicides in emerging markets

Asia Pacific 487 (+12%)

Europe 1,659 (+7%)

South America, Africa, Middle East

1,054 (+7%)

North America 965 (+1%)

€4,165 (+6%)

In brackets growth at constant exchange rates in % vs. prior year

in million €

Regionally balanced business Global volume growth, especially in emerging markets

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BASF Crop Protection Sales by region FY 2011

BASF FY2011 results

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