150 years

150 years

Annual Press Conference Ludwigshafen, February 27, 2015

150 years

Higher dividend proposed

Proposed dividend of €2.80 per share in 2014 (2013: 2.70 €)

Long-term performance of BASF shares still clearly surpasses benchmark indexes

+14.5

+9.6

+3.8

+8.7

MSCI WorldChemicals

Euro STOXX 50

DAX 30

BASF share

Performance of BASF shares compared with indexes (2004-2014) %

Dividend per share €

2

2.20 2.50 2.60 2.70 2.80

2010 2011 2012 2013 2014

150 years

BASF profitably grew again in 2014 – despite challenging conditions

Sales in fourth quarter nearly at level of prior-year quarter; slightly higher volumes and positive currency effects could not fully compensate for oil-price related lower sales price

Sales in full year 2014 at previous year’s level

Increased EBIT before special items in fourth quarter thanks to Chemicals and Agricultural Solutions

Higher EBIT before special items in full year 2014 due to earnings improvement in the chemicals business

18,047

74,326

18,149

73,973

4th quarter Jan.-Dec.

Sales million €

-1%

+0%

2014 2013

1,459

7,357

1,419

7,077

4th quarter Jan.-Dec.

EBIT before special items million €

+3%

+4%

3

150 years “We create chemistry” strategy on track

Focus on customer industries, e.g. automotive industry

Globalization of R&D, Innovation Campus Asia Pacific

Strengthening of the Production Verbund, TDI in Ludwigshafen

4

150 years

New superabsorbent technology

The innovation: superabsorbent particles with round shape that better absorb and distribute the liquid

Thanks to SAVIVATM producers of diapers can reduce raw material consumption and increase the wearing comfort of their products

Investment of up to €500 million in the coming years to refit existing plants

5

150 years

150 years of BASF – Anniversary themes

Food Smart energy

6

Urban living

150 years

Outlook for BASF Group

Outlook for full year 2015 Slight sales increase expected, due in part to sales

growth in Functional Materials & Solutions and Performance Products

EBIT before special items likely to match level of 2014

Economic environment 2015 GDP growth: +2.8% Growth in chemical production*: +4.2% Exchange rate: $1.20 per euro Oil price (Brent): $60-$70 per barrel

*excluding pharmaceuticals 7

150 years

Chemicals

Performance Products

Increase in EBIT before special items in Chemicals and Performance Products in 2014

Sales million €

EBIT before special items million €

Sales were stable; higher volumes, especially in Petrochemicals

Earnings increase due to higher contributions of Petrochemicals and Intermediates

Slight sales decrease due to negative currency effects

Increase in earnings mainly due to lower fixed costs as a consequence of restructuring measures

16,968 16,994

2014 2013

0%

15,433 15,534

2014 2013

2,367 2,182

2014 2013

1,455 1,365

2014 2013

-1%

+8%

+7%

8

150 years

Earnings increased considerably in Functional Materials & Solutions and decreased in Agricultural Solutions in 2014

Sales million €

EBIT before special items million €

Slight sales increase especially thanks to considerably higher volumes in products for the automotive industry

Considerable earnings increase due to higher earnings in Catalysts and Coatings

Slight increase in sales thanks to higher demand for fungicides and herbicides

Negative currency effects, declining margins and higher R&D expenditures responsible for earnings decrease

17,725 17,252

2014 2013

+3%

5,446 5,227

2014 2013

1,197 1,070

2014 2013

1,109 1,222

2014 2013

-9%

+12%

+4%

Functional Materials & Solutions

Agricultural Solutions

9

150 years

Slight sales increase and slight earnings decrease in Oil & Gas segment in 2014

Sales million €

EBIT before special items million €

Slight increase in sales due to higher volumes in the Natural Gas Trading business sector

Slight earnings decrease as a result of lower contributions from Exploration & Production and Natural Gas Trading

15,145 14,776

2014 2013

+2% 1,795 1,856

2014 2013

-3%

Oil & Gas

10

150 years

57%

16% 6%

21%

2014 sales and EBIT before special items in the regions*

Sales BASF Group

74,326

North America

South America, Africa, Middle East Asia Pacific

Europe

0% Sales 11,643

Sales 42,854

-1% Sales 4,362

Sales 15,467 +6%

-1%

EBIT** 1,566 +27

+31 EBIT** 418

EBIT** 4,759 +450

*by location of company, **before special items

-228 EBIT** 614

million € change to previous year for sales in %, for EBIT** in million €

11

150 years

2014 reconciliation to net income

million € ∆%

vs. 2013

EBIT before special items 7,357 +4

EBIT 7,626 +7

Financial result -423 +24

Income before taxes and minority interests 7,203 +9

Net income 5,155 +8

€ ∆ vs. 2013

in €

Earnings per share (EPS) 5.61 +0.39

Adjusted EPS 5.44 +0.13 EBIT before special items

Net income

5.2

Special items

Taxes and minority interests

Financial result 7.4

billion €

12

150 years

High operating cash flow in 2014

At €7.0 billion, cash provided by operating activities below previous year’s level (2013: €8.1 billion)

Payments related to property, plant and equipment and intangible assets increased to €5.3 billion (2013: €4.9 billion)

Free cash flow with €1.7 billion significantly below previous year (2013: €3.2 billion)

Free cash flow

7.0

Cash provided by operating activities

1.7

Payments related to property, plant and equipment and intangible assets

5.3

billion €

13

150 years

150 years