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Tackling the challenges ahead

May 2009

Dr. Andreas KreimeyerMember of the Board of Executive Directors

German & Austrian Conference, Deutsche BankJune 23, 2009

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1 | Overview BASF

2 | Robust performance in difficult environment

3 | Managing the downturn

4 | Clear priorities for use of cash

3 3

Customers in more than 170 countriesand in virtually all industries

BASF – Facts & figures

International, interdisciplinary R&D network

No 1 – 3 market position in over 75% of our businesses

Unique “Verbund” concept for integrated ProductionSix Verbund sites in all major regionsProduction sites in 41 countries

High quality management team: Senior executives from 36 countries

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Chemicals

Plastics

PerformanceProductsFunctionalSolutionsAgriculturalSolutionsOil & Gas

* without 6.1 billion € “Other”

10.3

9.7

9.0

3.4

14.4

9.4

NAFTA (19%)

Europe (59%)

South AmericaAfricaMiddle East (7%)

Asia Pacific (15%)

* Sales based by location of customer

Sales per segment* (billion €) Regional sales distribution*

Sales per segment – Sales per regionTotal sales BASF Group 2008: €62 billion

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• Automotive

• Construction

• Utilities

• Automotive

• Construction

• Utilities

• Agriculture

• Plastics

• Oil industry

• Agriculture

• Plastics

• Oil industry

• Electrical & Electronics

• Paper

• Furniture

• Electrical & Electronics

• Paper

• Furniture

• Chemical (not an industry with end users)

• Chemical (not an industry with end users)

BASF sales by customer industry(in percentage of sales)*

* Other industries: approximately 10-15% of total sales

10 – 15 %10 – 15 %

5 – 10 %5 – 10 %

< 5 %< 5 %

> 15%> 15%

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1 | Overview BASF

2 | Robust performance in difficult environment

3 | Managing the downturn

4 | Clear priorities for use of cash

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BASF demonstrates strength in an extremely difficult environment

• Sales: €12.2 billion (-23%) • EBIT before special items: €985 million (-58%)• Net income €375 million (-68%)• Earnings per share (EPS): €0.41 (-67%)• Strong operating cash flow: €2.1 billion (+91%)

Key facts Q1 2009

Business development Q1 2009

• Strong cash generation, cost containment measures successful• Excellent performance in Agricultural Solutions• Weak industrial businesses, no signs of improvement

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Sales Δ% EBIT* Δ%

Chemicals 1,4161,4631,8171,5681,1453,894

916

75 (86)(45)Plastics (39) (29) .Performance Products (18) 132 (41)

Oil & Gas 4 725 (26)Agricultural Solutions 21 344 33Functional Solutions (35) (46) .

(45)Other (216) (77)

Million €

* before special items

Impact of crisis depending on segmentQ1 2009 vs. Q1 2008

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BASF today – a well-balanced portfolioTotal sales 2008: €62.3 billion

* Styrenics are reported under ‘Other’ following the transfer of the Specialty Plastics and Foams business units to the Performance Polymers division as of January 1, 2008

** Performance Products segment as of April 1, 2009

Percentage of sales

Chemicals

17%

Plastics*

16%

FunctionalSolutions15%

Performance Products**14%

AgriculturalSolutions5%

Oil & Gas

23%

ConstructionChemicals

Inorganics

Petrochemicals

Intermediates

PerformanceChemicals

Coatings

Dispersions &Pigments

PerformancePolymers

Polyurethanes

CropProtection

Exploration & ProductionandNatural Gas Trading

CareChemicals

Catalysts

Paper Chemicals

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EBIT* before special items by activity in billion €without non-compensable foreign taxes on oil production

Oil & Gas and Agro businesses providing a stable earnings basis

* Without ‘Other’** 2007 and 2008 according to new segment structure (excl. Styrenics and corporate costs)*** Based on German GAAP

0

1

2

3

4

5

6

7

2001*** 2002*** 2003*** 2004 2005 2006 2007** 2008**

Oil & GasAgroChemical activities

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Increasing share of specialty chemicalsDevelopment of sales and EBITDA

* Excluding Precious & Base Metal Services, Oil&Gas and ‘Other’** Excluding Styrenics commodity business

Specialties Commodities

Sales in billion € * EBITDA in billion € *

0

10

20

30

40

2004 2005 2006 2007** 2008**0

1

2

3

4

5

6

7

2004 2005 2006 2007** 2008**

48

52

49

51

49

51

49

51

53

47

52

48

53

47

55

45

63

37

62

38

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Index

Fixed costs indexed

• Absolute level of fixed costs stable compared to last trough, while business increased significantly

• Acquisitions in 2006 pushed up fixed costs slightly

• Fixed costs represent less than 40% of total costs

EBITDA indexedSales indexed

Relentless fixed cost management

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007 2008

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1 | Overview BASF

2 | Robust performance in difficult environment

3 | Managing the downturn

4 | Clear priorities for use of cash

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Watch your cash ► High operating cash flow and free cash flow in Q1 2009

Short-term measures► Decisive measures to reduce production to below 60%► Implementation of short-time work

Reassess investment program ► Reduction of 20% vs. 2008 targeted

Long-term measures► Closure of unprofitable sites► Restructuring and efficiency programs enhanced► Synergies from efficient integration of acquisitions

Start working capital initiatives

► Strict inventory management generates cash► Reduction in net working capital by €1 billion in Q1 2009

Further enhance financial strength

► Several long-term bonds issued at competitive rates during last months

Acting swiftly with focus on cost and cash

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Annual earnings contribution in € million

Completedrestructuringprograms

NEXT

2003 2004 2006 2008

Sustainable improvement of cost base

2010 2012

NEXT

• Project timeline:2008 – 2011

• Potential earnings contribution:>€1 billion by 2012

• Non-recurring costs: €300 million

• Investment:€700 million

• Personnel reduction:>1,000 employees

0

500

1,000

1,500

2,000

2,500

16

46%*

Solid financing as a key advantage in turbulent times

100%BondsBonds • Bonds for a total €4.6 billion and GBP400 million issued between November 2008 and May 2009

• Balanced bond maturity profile

• Bonds for a total €4.6 billion and GBP400 million issued between November 2008 and May 2009

• Balanced bond maturity profile

CommercialPaperCommercialPaper

• No difficulties in issuing commercial paper

• Commercial paper program of $12.5 billion ($2.5 billion drawn byend of Q1 2009)

• No difficulties in issuing commercial paper

• Commercial paper program of $12.5 billion ($2.5 billion drawn byend of Q1 2009)

Syndicated LoansSyndicated Loans

• Broadly syndicated undrawn long-term back-up lines of $6.0 billion

• Financing for Ciba transaction guaranteed by short-term syndicated credit facility of CHF 3.5 billion

• Broadly syndicated undrawn long-term back-up lines of $6.0 billion

• Financing for Ciba transaction guaranteed by short-term syndicated credit facility of CHF 3.5 billion

CreditRatingCreditRating

• Strong investment grade rating:Moody‘s: A1/P-1 outlook stable; Standard & Poor’s: A+/A-1 outlook negative

• Committed to credit ratios that support a single A rating

• Strong investment grade rating:Moody‘s: A1/P-1 outlook stable; Standard & Poor’s: A+/A-1 outlook negative

• Committed to credit ratios that support a single A rating

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1 | Overview BASF

2 | Robust performance in difficult environment

3 | Managing the downturn

4 | Clear priorities for use of cash

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Strong history of cash flow generation

-1

0

1

2

3

4

5

6

2001** 2002** 2003** 2004 2005* 2006 2007 2008 Q1 2009

In billion € Cash provided by operating activities Free cash flow*

* Cash provided by operating activities less capex (in 2005 before CTA)

** According to German GAAP

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Focus on operating cash flow

R&D Capex Acquisitions Dividend

Stable Reduction of 20% compared

with 2008*

Focus on Cibaintegration

Increasingly difficult to

maintain dividend at €1.95

Reduction of net working capital by ~ €1 billion

Use of cash adapted to current market conditions

* Capex 2008: €2.5 billion

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• Targeted annual sales from product innovation*:- 2010: €4 billion p.a.- 2015: €5 billion p.a. [thereof 20% annual top-line growth]

• Targeted annual sales from growth clusters:- 2010: €0.5-1 billion p.a.- 2015: €2-4 billion p.a.[100% annual top-line growth]

• R&D Verbund extends to 1,900 co-operations, thereof over 40% with industrial partners

* New or improved products or new applications, max. 5 years on market

14%24%

9%11%

17%

24%

ChemicalsPlastics

AgriculturalSolutions

PerformanceProducts

Corporate Research(Exploratory Research and Growth Cluster R&D)

Functional Solutions

Innovation will secure our long-term successR&D expenditures planned to remain on high level of previous years

1%

Oil & Gas

R&D spending 2008: €1.35 billion

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Project selection based on thorough strategic analysis

Fit to BASF

Market attractiveness

high

highlow

low

Novel projects with high priority for BASF

• Market Attractiveness: focus on external criteria, e.g. growth, profitability

• Fit to BASF:focus on internal criteria,e.g. technological and strategic fit

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• More than 1,700 projects and 1,000 topics in the pipeline

• Leader in number of global patent applications in chemistry, portfolio of 130,000 patents and patent applications

Project and portfolio management: from idea to market launch with PhaseGate

Innovation drives growthPhaseGate process optimizes efficiency and effectiveness

Opportunityfields

Businesscase

Lab Pilot Launch

Gat

e 2

Gat

e 3

Gat

e 1

Gat

e 4

Gat

e 5

Gat

e 6

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• Beyond efficient disease control F 500 delivers:

- More yield (6-10%)- Healthier crops and better quality

• Global umbrella brand AgCelence™

• Leadership position in the Americas

• F 500® (Headline®)success in U.S. market:

- Treatment nearlydoubled in 2008(>25 million acres)

• Peak sales potential increased by €200 million

Plant Health

Increase in yield and grain quality

Growthperformance

Biomass increase

Yield andquality

protection

Stresstolerance

Global peak sales potential: €700 million

Creating the new market segmentPlant Health with our blockbuster F 500®

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insulated not insulated

Reducing cost and CO2 emissions through innovative solutions

• Highly efficient insulation materials:- Styropor®/Neopor®- Basotect®- Polyurethanes

• Other materials to reduce CO2 emissions in construction, e.g. cement additives

• Reduction of energy consumption of residential houses by more than 70% with BASF materials- 110 million metric tons of

CO2 saved

BASF sales of insulation materials: 400,000 mt p.a.

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Integration of Ciba initiated

• Acquisition closed on April 9, 2009

• Two-month discovery phase to complete detailed integration plan

• Integration phase will start in July 2009

• Substantial restructuring measures required

• Integration to be completed 12 months after closing

We aim to achieve synergies of at least 10% of Ciba’s sales

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0,00

0,50

1,00

1,50

2,00

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Dividend in € per share• CAGR of dividend

(1999-2008): 15%

• Attractive dividend yield of 6.8% in 2008*

Attractive shareholder return policy

* Based on the share price of April 30, 2009 (€28.57)Special dividendDividend

0

€1.95

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Outlook 2009

In 2009, despite the acquisitions of Ciba Holding AG and Revus Energy ASA, we expect a decline in sales compared with 2008 and an evengreater decline in income from operations, which will be negatively impacted by integration costs.

Our goal of earning our cost of capital is thus becoming increasingly difficult to achieve.

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Disclaimer

This presentation is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

This presentation has been prepared by BASF. No representation or warranty (express or implied) of any nature is given, nor is any responsibility or liability of any kind accepted, with respect to the truthfulness, completeness or accuracy of any information, projection, statement or omission in this presentation.

This presentation does not constitute, nor does it form part of, any offer or invitation to buy, sell, exchange or otherwise dispose of, or issue, or any solicitation of any offer to sell or issue, exchange or otherwise dispose of, buy or subscribe for, any securities, nor does it constitute investment, legal, tax, accountancy or other advice or a recommendation with respect to such securities, nor does it constitute the solicitation of any vote or approval in any jurisdiction, nor shall there be any offer or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction (or under exemption from such requirements).

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Forward-looking statements

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.

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