BASF Capital Market Story__June 2012

We add value as one company

Group Visit Morgan Stanley Ludwigshafen June 29, 2012

BASF Presentation June 2012

BASF Nutrition & Health The ingredients that enhance life

Walter Dissinger President Nutrition & Health Division Ludwigshafen June 29, 2012

BASF Presentation June 2012

Human Nutrition

Pharma Ingredients & Services

Animal Nutrition

Aroma Ingredients

Health ingredients Functional Ingredients, Vitamins Food & Beverage Performance Ingredients Emulsifiers, Enzymes, Colorants, Antioxidants, Process Aids

Excipients Binders

Solubilizers/Coatings Active Ph. Ingredients

Caffeine/Ephedrines Ibuprofen

Custom Synthesis

Essentials Cholin Chloride Vitamins, etc. Performance ingredients Enzymes Organic Acids, etc.

Flavor ingredients Menthol

Fragrance ingredients

Geraniol Citronellol

Linalool

BASF Nutrition & Health A leader in ingredients that enhance life

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BASF Presentation June 2012

BASF Nutrition & Health 26 percent sales growth in 2011

Health 27%

Personal & Home Care 11%

Nutrition 62%

€1.9 billion

Asia 22%

South America, Africa, Middle East 9%

Europe 50%

North America 19%

Sales 2011 by region

€1.9 billion

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Above average EBITDA margin

Sales 2011 by first customer industry

BASF Presentation June 2012

BASF Nutrition & Health Global manufacturing and R&D footprint

Isle of Lewis

World scale production sites and regional application laboratories enable cost leadership, customer proximity and quick reaction time to local trends.

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Minden

Shenyang

LU

Ballerup

St. Vulbas

Bishop

Production site

Application lab

Production site

Application lab

Mumbai/ Thane

Tarrytown

Sao Paulo

Gunsan

Shanghai

Evionnaz

Illertissen

Brattvag

Pasadena

Whyalla

Cheltenham

Hutt Lagoon Jacarei

Kankakee

Boussens

Kuala Lumpur/

Kitatone

Isle of Lewis

BASF Presentation June 2012 5

Strategically relevant markets Robust non-cyclical growth

in € billion Growth Drivers

Needs of an aging population

Growing consumer desire for health, convenience and wellness solutions

Higher protein diets in emerging markets, i.e. more meat, milk and egg products

Trend towards “natural“ ingredients

Increased regulatory requirements

Market pull for sustainably produced consumer products with high brand relevance

Human Nutrition

Pharma Ingredients & Services

Aroma Ingredients

Animal Nutrition

2011

~81

2015

~72

BASF Presentation June 2012

BASF Nutrition & Health Bright perspectives for our business

low

m

ediu

m

high

leading comparable behind

Animal Nutrition

Pharmaceutical Ingredients &

Services

Mar

ket A

ttrac

tiven

ess

Market Position

Aroma Ingredients

Human Nutrition

Profitable growth

Active in highly attractive markets, driven by the health and wellness megatrends

Leading positions in Aroma Ingredients and Animal Nutrition

Further strengthen positions in Pharmaceutical Ingredients & Services and Human Nutrition

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BASF Presentation June 2012 7

BASF Nutrition & Health Leveraging the BASF Verbund

Leveraging the BASF Verbund

Citral Verbund is an ideal basis for further portfolio expansion

Synergies for the entire Nutrition & Health division:

– Technology and know-how platform

– Backward integration into key raw materials

Human Nutrition Animal Nutrition Pharma Ingredients & Services

Aroma Ingredients

Citral Verbund

C4 value chain Value chains from renewable resources

(e.g. natural oils, etc.)

BASF Verbund Oil destillate from soybeans – one of the raw materials

for our natural vitamin E.

BASF Presentation June 2012 8

BASF Nutrition & Health Capturing opportunities in emerging markets

Growth strategy in emerging markets Asset diversification with strong emphasis

on Asia and Latin America

– already today Asia is our 2nd biggest region

Proximity to customers in emerging markets:

– invest in local R&D, e.g. in Brazil, China, India

– improve market penetration via co-operations with strong local partners, e.g. in Russia

Portfolio extensions to serve local market needs, e.g. new enzyme technology

Opportunities to grow with the middle class and bottom of the pyramid market segments

Natural Beta-carotene production (via cultivation of algae) at Hutt Lagoon, Australia

Scientists in one of our

laboratories in Asia

BASF Presentation June 2012

More… Better… Less…

Animal Nutrition Creating value with feed performance ingredients

Pharma Ingredients & Services Aroma Ingredients Animal Nutrition Human Nutrition

Improved efficiency and sustainability e.g. through Natugrain®TS in the feed value chain

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More production at lower costs

Better quality (e.g. in meat, milk, eggs)

Better animal health and wellbeing

Less waste and en-vironmental impact

BASF Presentation June 2012

Human Nutrition Generating brand value for our customers

Pharma Ingredients & Services Aroma Ingredients Animal Nutrition Human Nutrition 10

BASF brand for plant sterols

Scientifically proven health claim for lowering cholesterol

Total plant sterol sales 2011: above € 100 million

Danone’s “Danacol”

Yoghurt drink with plant sterol esters that lower cholesterol

Danacol market leader in many countries

Successful brand extension: spoonable yoghurt and yoghurt with cereals

Strategic alliance Danone & BASF

with focus on products with “cardio health

benefits”

BASF Presentation June 2012

Pharma Ingredients & Services Leading innovations towards better pharmaceutical products

BASF brings active ingredients to life!

Product example: BASF Soluplus® - The Solid Solution Honored with Silver Innovation Award:

better uptake of drug molecule

(bio-availability)

Crystalline active + polymer BASF

contribution Soluplus®

Solubilization Final product

Pharma Ingredients & Services Aroma Ingredients Animal Nutrition Human Nutrition 11

enhanced dissolution

BASF Presentation June 2012

Pharma Ingredients & Services Equateq acquisition strengthens portfolio

Portfolio extension: Equateq has unparalleled expertise and capabilities in omega oils

Equateq site: Isle of Lewis (Scotland)

Pharma Ingredients & Services Aroma ingredients Animal Nutrition Human Nutrition 12

Equateq acquisition ■ Deal closed on May 8th, 2012 ■ Leading producer of omega-3

concentrated oils (heart health)

■ Markets/applications: Prescription drugs, generics and dietary supplements

■ High single-digit € million sales expected in 2012

■ Construction project to be finalized end of 2012

BASF Presentation June 2012

Aroma Ingredients Leveraging the Citral Verbund to capture growth potentials

Aroma ingredients market

20 largest aroma ingredients

30 %

Pharma Ingredients & Services Aroma Ingredients Animal Nutrition Human Nutrition 13

Market details Highly fragmented market

BASF focusing on higher value and growth products, e.g. lily of the valley, lavender, etc.

Next: world scale L-Menthol plant on stream by Q3 2012

L-Menthol is the top selling aroma ingredient worldwide in terms of sales volume

BASF is a leading producer of aroma ingredients, and is well positioned for growth

BASF active in:

L-Menthol

Lysmeral

Linalool

Citral Geraniol

Citronellol

Other 3000 aroma ingredients 70%

BASF Presentation June 2012

Aroma Ingredients L-Menthol – the world’s largest plant in Ludwigshafen

Mint flavor

Main applications: oral care, cosmetics, confectionary

Synthetically produced from Citral

Plant expected to be fully on stream in Q3 2012

Pharma Ingredients & Services Aroma Ingredients Animal Nutrition Human Nutrition 14

BASF´s L-Menthol

BASF Nutrition and Health Division June 2012

Growth. Value. Sustainability.

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Growth. Value. Sustainability. Nutrition & Health

Roadmap

Generate above market top-line growth and sustainably attractive margins

Leverage our capabilities in enhancing bioavailability in all market segments

Foster position as trusted partner with customers and create brand value with our ingredients

Focus on “natural” ingredients

Capitalize on growth opportunities in emerging markets

Leverage advantages of BASF’s Verbund and further build cost leadership positions

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BASF Nutrition and Health Division June 2012

Growth. Value. Sustainability.

Walter Dissinger President Nutrition & Health Division Morgan Stanley group visit Ludwigshafen June 29th, 2012

Back-Up

BASF Nutrition & Health The ingredients that enhance life

BASF Presentation June 2012

Global megatrends influence the nutrition & health industries

Global megatrends

Growth and aging of the world population

Urbanization and metropolitan growth

Energy demand and climate impact

Economic globalization and emerging markets

Fragmentation of ingredients markets

Bioavailability of ingredients as unmet customer need

Increasing complexity of regulatory framework

Consumer preferences for natural / nature-identical ingredients

Characteristics of the Nutrition & Health industries

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BASF Presentation June 2012

BASF Nutrition & Health Connected innovation: creating a sustainable competitive advantage for customers and BASF

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