Kurt BockChairman of the Board
of Executive Directors
Investor Briefing
Frankfurt a. M.
May 3, 2016
Chances and Challenges in Europe
BASF Investor Briefing Europe; May 3, 2016 2
Cautionary note regarding
forward-looking statements
This presentation may contain 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. Forward-looking statements may include, 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 and assumptions with respect to future events and financial
performance. Actual financial performance 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. 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.
BASF Investor Briefing Europe; May 3, 2016 3
European political and business environment
BASF’s approach to European markets
Appendix
BASF Investor Briefing Europe; May 3, 2016 4
.
Moderate GDP growth expected for 2016
– recovery in the medium term
1.8 1.7 1.8
2015 2016 2016-2018
6.2 5.7 5.8
2015 2016 2016-2018
-2.1 -1.7
0.6
2015 2016 2016-2018
2.4 2.1 2.4
2015 2016 2016-2018
European Union
United States
South America
Emerging Asia
Source: BASF
GDP growth in key regions
(in % per year)
2.4 2.3 2.7
2015 2016 2016-2018
World
BASF Investor Briefing Europe; May 3, 2016 5
Key drivers for moderate European GDP
growth
Private consumption
Increasing real incomes in northwestern Europe
Low interest rates
Almost no inflation and low energy prices
Digitalization
“Industry 4.0”
Upgrading of digital infrastructure
Innovation
New high value-added products
Excellent research networks (corporate sector and academia)
Regional developments
Continued growth in western and eastern Europe
Stabilization in southern Europe
BASF Investor Briefing Europe; May 3, 2016 6
Recommended measures to stabilize and
accelerate growth in Europe
Keep integrity of European Union
Keep Schengen system
No Brexit
Upgrade infrastructure
Roads
Rail systems
Smart grids
Improve financial stability
Long-term consolidation of
sovereign debt
Deepen banking union
Enhance innovation policy
Improve openness to innovation
Promote innovation principle
Improve industrial policy and
investment climate
Better regulations
Balance energy & climate policy
Global level playing field in
emission reduction
Keep competitiveness (e.g. EEG)
Introduce balanced circular
economy package
Chemical leasing, mass balance
Prevent high costs
Extend free trade agreements
TTIP
CETA
BASF Investor Briefing Europe; May 3, 2016 7
Current European environment supports
only moderate economic growth
GermanyEurope
Growth-
supporting
factors
Growth-
constraining
factors
Weak Euro supports exports
Low oil prices and
accommodative monetary
policy support domestic
demand
Structural economic problems
(high sovereign debt, weak
labor productivity growth, aging
population)
Slow progress in economic
reforms
Deep integration of industrial
value chains, innovative products
Flexible education, powerful
innovation system
Export of sophisticated
investment goods and durables
Aging and decreasing labor
force
Increasing financial burden
from pension and social
security systems
BASF Investor Briefing Europe; May 3, 2016 8
Chemicals remains a growth industry
…more food needed
by 2050…more primary energy
consumption
by 2050
…of the world
population will live in
cities by 2050
Agriculture Health &
nutrition
Energy &
resources
Transportation Construction
& housing
Consumer
goods
Chemistry as enabler for current and future needs
…people
by 2050
70% 50% ~10
bn
Electrical &
Electronics
30%
BASF Investor Briefing Europe; May 3, 2016 9
Emerging markets driving chemical
production growth above global GDP
0
1,000
2,000
3,000
4,000
5,000
2010 2015 2020 2025
+0%
+4%
+0%
+3%
+1%
+5%
+2%
+4%
+1%
+2%
+2%
Global GDP
CAGR:
2.6%
Global GDP
CAGR:
3.0%
Real chemical production excl. pharma
(in billion US$**)
CAGR*
3.7%
CAGR*
3.7%
CAGR*
3.8%
+5%
+3%
+3%
+1%
+2%
+2%
Global GDP
CAGR:
3.1%
+6%
Asia Pacific
South America
Middle East, Africa
Western Europe
Eastern Europe
North America
* Real chemical production excluding pharmaceuticals; ** Measured in value of 2010
BASF Investor Briefing Europe; May 3, 2016 10
Chemical production in 2015
at ~US$765 billion*
Second largest market for
chemicals globally
Expected growth: ~1.2% p.a.
EU is a net-exporter of
chemicals
Strong export growth of
specialties and consumer
chemicals
EU turned from a net-exporter
of petrochemicals into a net-
importer
European chemical production
Source: Cefic; * Measured in value of 2010
Extra-EU trade balance for chemicals
(in billion € per year)
EU: A strong exporter of innovative
specialties and consumer chemicals
-10
0
10
20
30
40
50
2005 2010 2014
Petrochemicals
Basic inorganics
Specialty chemicals
Polymers
Consumer chemicals
BASF Investor Briefing Europe; May 3, 2016 11
Renewable energyConstruction
Specialty chemicals to drive growth of
chemical production in Europe
Wind energy
Photovoltaics
Smart grids
Electrical &
Electronics
Fuel cells
Solar cells
Automotive
Lightweight
Batteries
Electronics
Catalysts
Insulation
Smart homes
BASF Investor Briefing Europe; May 3, 2016 12
European political and business environment
BASF’s approach to European markets
Appendix
BASF Investor Briefing Europe; May 3, 2016 13
.
Europe is region with the largest sales
and earnings contribution to BASF Group
North America
SouthAmerica,
Africa,Middle East
Asia Pacific
Europe
* By location of customer
Sales*
BASF Group
70,449
Sales*; EBIT before special items in 2015
(in million €)
North America
Asia Pacific
Europe
EBIT
before SI
BASF Group
6,739
SouthAmerica,
Africa,Middle East
67%
6%6%
21%
52%
8%
18%
22%
BASF Investor Briefing Europe; May 3, 2016 14
BASF’s approach for Europe:
Accelerate profitable growth
Being close to our customers
– Stronger local presence
– Deeper customer interaction
– Support globalization of
customers
– Strengthen joint innovation
activities
Focus on innovation and
sustainability-driven industries
Upgrading of regional
production base; selective
investments to serve growing
local markets
Maintain highly efficient sites,
operations and processes
TDI plant in Ludwigshafen
TDI plant in Ludwigshafen
Sustainableconstruction
Innovations forthe automotiveindustry
Mobile emissionscatalysts production
in Środa Śląska
Constructionsystems in
Czech Republic
Agro Field Days in Romania
BASF site
Verbund site
Leverage #1 position in BASF’s
core market
BASF Investor Briefing Europe; May 3, 2016 15
European political and business environment
BASF’s approach to European markets
Appendix
BASF Investor Briefing Europe; May 3, 2016 16
Steady earnings growth
* 2010, 2011 indicative, adjusted by IFRS 10 & 11; 2001 – 2009 as reported, without non-compensable foreign income taxes on oil production
EBIT and EBITDA*
(in billion €, 2001 - 2016)
3.7
4.7 4.6
7.0 7.2
8.48.9
7.7
6.5
9.9
11.2
10.010.4
11.010.6
2.8
0
2
4
6
8
10
12
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q12016
EBITEBITDA
0.7
2.2 2.2
4.5 4.8
5.56.0
4.6
2.8
6.7
8.0
6.7 7.27.6
6.2
1.9
CAGREBITDA
7.9 %CAGREBIT
16.6 %
BASF Investor Briefing Europe; May 3, 2016 17
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2006 2009 2012 2015
2.90
4.6%
Key facts 2015
Dividend of €2.90 per share,
an increase of 3.6%
Dividend yield of 4.1%*
Dividend yield above 3.5%
in any given year since 2006
Dividend per share
(in €)
0.50
1.00
1.50
2.00
* Dividend yield based on share price at year end
4.1% 3.8% 7.0% 3.9% 3.7%Yield* 3.7%
2.50
3.5%
3.00
4.0% 4.1%
1.50
1.95 1.95
1.70
2.20
2.50 2.60 2.70
Dividend policy
We want to grow or at least
maintain our dividend at the
previous year’s level2.80
Attractive shareholder return
BASF Investor Briefing Europe; May 3, 2016 18
Profitability of BASF will grow faster than
global chemical production
Sales growth
Slightly faster than the global chemical production
EBITDA growth
Well above global chemical production
Remain a strong cash provider
Continuously generate high levels of free cash flow
Financial targets for next years
Deliver attractive returns
Earn a significant premium on cost of capital
Progressive dividend policy
We want to grow or at least maintain our dividend
BASF Investor Briefing Europe; May 3, 2016 19
Grow sales and earnings faster than global chemical production, driven by
– Continued focus on innovations (R&D spending about 3% of sales*)
– Capital expenditures (slightly above depreciation levels)
– Acquisitions
– Operational excellence and Verbund advantages
Continue to prune our portfolio
Maintain industry-leading position in sustainability
Focus on cash generation / conversion
The way forward:
Our priorities
* Excluding Oil & Gas sales
BASF Investor Briefing Europe; May 3, 2016 20
Sales development Volumes Prices Portfolio Currencies
Q1 2016 vs. Q1 2015 0% (6%) (22%) (1%)
Q1 2016: BASF with slightly lower earnings
compared to strong prior-year quarter
Financial figures Q1 2016 Q1 2015 Change
Sales €14.2 billion €20.1 billion (29%)
EBITDA €2.8 billion €2.9 billion (3%)
EBIT before special items €1.9 billion €2.1 billion (8%)
EBIT €1.9 billion €2.0 billion (6%)
Net income €1.4 billion €1.2 billion +18%
Reported EPS €1.51 €1.28 +18%
Adjusted EPS €1.64 €1.43 +15%
Operating cash flow €1.0 billion €2.4 billion (56%)
BASF Investor Briefing Europe; May 3, 2016 21
Outlook 2016
Sales will be considerably below prior year, due to the divestiture of the natural gas trading
and storage activities and the lower oil and gas prices. Excluding the effects of acquisitions
and divestitures, we expect higher volumes in all segments.
We expect EBIT before special items to be slightly below the previous year driven by
drastically lower earnings of Oil & Gas. We plan higher earnings in our chemicals business
and in the Agricultural Solutions segment.
EBIT after cost of capital is expected to be significantly below prior year. However, we still
expect to earn a premium on our cost of capital.
Assumptions 2016
GDP growth: +2.3%
Growth in industrial production: +2.0%
Growth in chemical production (excl. pharma): +3.4%
Exchange rate: $1.10 per euro
Oil price (Brent): $40 per barrel
Outlook 2016 confirmed
BASF Investor Briefing Europe; May 3, 2016 22