#1Sanjeev Gandhi President Intermediates Division Investor Day Chemicals segment May 22, 2014 Q-BASF The Chemical Company Intermediates Excellence in the Verbund#2Cautionary note regarding forward-looking statements Q-BASF The Chemical Company 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 Day Chemicals segment - Intermediates, May 22, 2014 2#3BASF Intermediates ... is a uniquely positioned, innovation-driven and highly profitable growth business rooted in the BASF Verbund, and a bridge to the market ... is focused on excellence in commodities, and also has solutions business ... is a robust and long-term value driver for BASF BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 3#4Intermediates, a small but powerful part of BASF's balanced portfolio BASF Group third party sales 2013 Performance Products 21% Chemicals 23% Q-BASF The Chemical Company Agricultural Solutions 7% Functional Materials & Solutions 23% BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 Intermediates 4% €74 billion Oil & Gas Other 20% 6% 4#5Strongly rooted in the Verbund, and selling mainly to the merchant market Petrochemicals, Monomers BASF Verbund Q-BASF The Chemical Company Performance Materials, Crop Protection, Performance Chemicals, Care Chemicals Nutrition & Health raws 70% raws 30% BASF Intermediates Market Bridge between Verbund and merchant market BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 products 35% products 65% 5#6Intermediates is uniquely positioned within BASF and versus peers TWY SEAD Q-BASF The Chemical Company Broadest portfolio in industry: <~700 chemical intermediates > 40 technologies 3,000 A decade of customers profitable growth: 5.5% consolidated sales CAGR (2004-2013) BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 6#7Global trends trigger growth of Intermediates demand Q-BASF The Chemical Company Energy consumption Butanediol & Derivatives Aging population Urbanization Globalization Amines 5%* 5%* Acids & Specialties 4%* BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 * Market growth, CAGR 2007 - 2013 Growing population Polyalcohols & Specialties 4%* 7#8Intermediates holds leading market positions in all its key product lines Q-BASF The Chemical Company Butanediol & Derivatives PolyTHFⓇ: #1 ■ BDO: #1 Amines Acids & Specialties Formic acid: #1 • Specialty Amines: #1 ■ Ethanolamines: #2 · Propionic acid: #1 Polyalcohols & Specialties Neopentylglycol: #1 - Hexanediol: #1 Main Competitors Invista Arkema DuPont Ube AkzoNobel Huntsman Mitsubishi Chemical DCC LG Chem Taminco Dow Kemira Luxi Chemical Corp FAC Evonik Clariant Ashland Perstorp Eastman BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 #: Market position in 2013 DCC: Dairen Chemical Corporation FAC: Feicheng Acid Chemicals Co. Ltd. 8#9Regionally balanced business Consolidated sales by region in billion Rest of world 1% N. America 14% Asia 21% 2004 ~€2.7 bn CAGR Europe 64% ~5.5% Rest of world 3% N. America Q-BASF The Chemical Company 16% 2013* ~€4.3 bn Europe 54% Asia 27% Diversified regional sales split, Asia grows strongly BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 * 2013 adj. to exclude IFRS effect (Nanjing JV and Jilin JV) 9#10Global asset footprint in 2015 Americas: 4 sites Europe: 4 sites Zachary Antwerp Q-BASF The Chemical Company Asia: 10 sites Jilin PetroChina Schwarzheide Nanjing Nanjing Ulsan Yeosu Nopec Korla MarkorChem' 美克化工 Chiba 出光 Idemitsu Chemicals 中 Geismar Evans City Ludwigshafen Barcelona Freeport Caojing Corbion Purac Production site Verbund site Kuantan "TORAY' Innovation by Chemistry PETRONAS Assets close to customers: 18 sites; 7 JVs; 3,000 employees; ~5 million t/a capacity BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 10#11Outgrowing chemicals market Consolidated sales in million 5.000 4.000 3.000 2.000 1.000 Financial crisis IFRS impact on sales Q-BASF The Chemical Company 2004 2005 2006 2007 2008 2009 2010 2011 2012R** 2013 2014E Intermediates has outgrown chemical production*: ~5.5% vs. ~3.7% (CAGR 2004-13) BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 * Without Pharma ** R = restated, includes IFRS 10/11 changes, new segment structure (both effective January 1, 2013) 11#12Verbund integration means flexibility and value capture e.g. Acetylene/BDO value chain Ludwigshafen Q-BASF The Chemical Company merchant market outlets Merchant Natural Gas Acetylene BDO THF PolyTHFⓇ GBL PBT The C1 value chain generated ~€0.5 billion cash flow in 2013 Captive BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 BDO-1,4-Butanediol; GBL-gamma-Butyrolactone; THF-Tetrahydrofuran; PBT=Polybutylene terephthalat 12#13BASF Plant 1 BASF Plant 2 Process improvements and favorable raw material positions drive economics 1,4-Butanediol (BDO) global cash cost curve* average cash costs 2013 in US$/kg Cash costs O-BASF The Chemical Company BASF has cost leading acetylene technology ■ Continuous improvement of cash costs ■ New improved Reppe process** gives cost leadership for new plants ■ Investment economics based on favorable raw material BASF Plant 3 BASF Plant 4 BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 Production capacity Source: BASF Reppe technology, first introduced by BASF in 1930'ies 13#14Innovation power Three pillars of innovation New & improved NPV processes Innovation pipeline Total NPV*: ~€500 million - € million 200 New applications NPV € million > 50 New products BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 * Not risk-adjusted, 2013 view CANALS 2011715 977 Q-BASF The Chemical Company NPV € million > 200 14#15Innovation power Process innovation: PolyTHFⓇ production Ludwigshafen Geismar PolyTHFⓇ site Caojing Korla Ulsan Process innovation is leveraged globally BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 Q-BASF The Chemical Company ■ Continuous improvement of cost leading technology by optimized plant set-up - new catalyst optimized process conditions · other minor investments 2009 to 2013: +100 kt/a capacity addition. at low cost to 290 kt/a 15#16Innovation power Application innovations: Formic acid Q-BASF The Chemical Company Formic acid in textile treatment Sugar cane plant cleaning: SettmillⓇ Water treatment / membrane cleaning Formic acid in bee- hive stripes 1960 2006 2007 2008 2009 2010 2011 2012 2013 2014 Animal feed: Amasil® Rubber coagulent Flue gas desulfurization Industrial & homecare cleaners: Protectol FMⓇ, LuvipurⓇ Life-cycle management and market expansion via new applications BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 16#17Innovation power Product innovation: Bio-based chemicals Renewable butanediol ④ genomatica sustainable chemicals Fermentation process, licensed from genomatica Sugar as renewable feedstock ☐ First to market with commercial volumes ■ ■ Q-BASF The Chemical Company Bio-based succinic acid JV Succinity BIOBASE YOUR SUCCESS Competitive bio-based process using renewable raw materials and CO2 Proprietary bacteria strain from BASF JV with Corbion Purac 100% kompostierba Bio-based polymers Construction Packaging ALDI Automotive Textile Open innovation approach for production of bio-based intermediates BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 17#18Intermediates is an innovation driver within BASF Q-BASF The Chemical Company Global needs Resources, Environment & Climate Food & Nutrition Quality of Life BASF growth fields Batteries for Mobility Enzymes E-Power Management Functional Crop Care Heat Management for Construction Lightweight Composites Organic Electronics Plant Biotechnology Water Solutions Wind Energy Intermediates Intermediates contributes to 7 of 10 BASF growth fields BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 18#19Intermediates: Incubator for innovation 2 businesses transferred to other divisions (Jan. 2013) One-company approach Q-BASF The Chemical Company ■ Developed epoxy systems – until 2012 - Today: internal supplier of high-quality amines Wind Energy & Lighweight Transferred to Performance Materials BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 * LiB = Lithium-ion Batteries ■ Developed electrolytes for LiB* – until 2012 - Today: internal supplier of high-quality carbonates ELECTROLYTE EC/EMC-LIPF 200 kg net Transferred to Catalysts Electrolytes 1 19#20Business growth drives investments Track record of investments into new plants (2009 - 2013) Cyclododecanone Ludwigshafen Amines Cluster Nanjing 2009 Amines Ludwigshafen 2010 2011 Q-BASF The Chemical Company Novolyte acquisition Zachary 2012 2013 Methylamines Geismar Tert-Butylamine Nanjing Globally balanced expansion of asset footprint BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 20#21Business growth drives investments Significant investments into new plants (2014 – 2018) HDO Ludwigshafen & Freeport Formic acid Geismar - DMAPA PEA Nanjing Q-BASF The Chemical Company BDO expansion Geismar 08/12/2013 09:39 巴斯夫特性化学品(南京)有限公司 BASF Specialty Chemicals (Nanjing) Co.Ltd. RSE (Heng hai Aras 2014 Bio-based succinic acid Montmeló 2015 Specialty amines Ludwigshafen 2016 BDO/PolyTHFⓇ Korla 美克化工工业园 美克化工二路項目蟹盧克巴斯夫三期项目 商業化品二月2日化三項目投产奠基仪式 al as MeseCe the Pmjet & Marko Chen and BAGF Phase 1 Project Har Has It Propet Pruduction and Eremitiraling Cre BASE 2017 Continued investments in all regions BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 NPG Nanjing 2018 21#22Key differentiators for profitable growth Q-BASF The Chemical Company Rooted in the Verbund Global asset & product portfolio Innovation power & unique technology portfolio Effective business models 22#23Effective upstream business model to manage complexity Q-BASF The Chemical Company Portfolio of > 300 different amines Lean & reliable larger volumes Lean & reliable ■ lower volumes Solutions business ☐ regional assets global assets Standard amines Specialty amines BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 OASE® GAS TREATING EXCELLENCE BY BASF ,Lean & reliable' amines supplier, with customized solutions business 23#24BASF Intermediates ... is a uniquely positioned, innovation-driven and highly profitable growth business rooted in the BASF Verbund, and a bridge to the market ... is focused on excellence in commodities, and also has solutions business is a robust and long-term value driver for BASF BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 24#25Intermediates: Growth business with efficient steering Consolidated sales vs. fixed costs Indexed 200 150 100 50 2004 2005 2006 2007 2008 2009 2010 2011 2012R* 2013 Sales Fixed costs BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 * R = restated Q-BASF The Chemical Company Key facts: ■ IFRS 10/11 effect on sales - JV Nanjing and JV Jilin, both in China - As of 2012 only accounted for at-equity ■ CAGR 2004 - 2013 - Sales: ~5.5% - Fixed cost: ~1.5% 25#26Intermediates: Growth business with ambitious targets Consolidated sales in billion 6 5 4 3 2 1 0 2004 2012R * 2013 2015E 2020E BASF Investor Day Chemicals segment - Intermediates, May 22, 2014 * R = restated Q-BASF The Chemical Company Targets: ■ Intermediates will continue to - - - Invest in assets close to markets Invest in innovation Optimize assets / products and business models Grow top and bottom line ■ Deliver consistent and stable EBITDA growth 26#27◉- BASF The Chemical Company