We add value as one company

Transcription

1 Kurt Bock Chairman of the Board of Executive Directors Roadshow Boston & New York October 2-3, 2014 We add value as one company

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 forwardlooking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. BASF Capital Market Story October

3 We create chemistry for a sustainable future Positioning Performance Perspective Geismar, USA Freeport, USA Ludwigshafen, Germany Antwerp, Belgium Nanjing, China Kuantan, Malaysia Verbund site The #1 chemical company 74 billion sales, 7.2 billion EBIT bsi in 2013 #1-3 in >75% of businesses, present in >200 countries 6 integrated Verbund sites, production in 60 countries A track record of strong sales and earnings growth 14% average annual dividend increase, >3% yield in every single year* ~ 70 billion market capitalization in Sept Chemistry as an enabler BASF has superior growth opportunities: sustainable innovations investments emerging markets Ambitious financial targets BASF Capital Market Story October 2014 * For

4 BASF today a well-balanced portfolio Total sales 2013: 74 billion Percentage of sales 2013* BASF Capital Market Story October 2014 * Not depicted here: ~6% of Group sales reported as Other 4

5 Verbund generates > 1 billion p.a. global cost savings*, supports sustainability Global reduction in carbon emissions of 6.1 million metric tons/a. and reduction of waste Example Ludwigshafen: avoidance of 7 million metric tons of freight/a. = 280,000 fewer truckloads Shared use of on-site facilities: fire department, security, waste water treatment and analytics BASF Capital Market Story October 2014 * Savings include only tangible synergies. Additional (intangible) benefits and retained profits are not included. 5

6 Business review BASF strategy & growth targets Strategic levers BASF Capital Market Story October

7 BASF outperformed global chemical production by ~3 percentage points p.a. Sales to third parties billion IFRS Impact Currencies 13.7 M&A Volumes Prices Currencies M&A Prices Volumes restated 2013 BASF Capital Market Story October

8 Operational excellence Strong track record BASF Group* Index CAGR % 8 % 3 % EBITDA Sales Fixed costs BASF Capital Market Story October 2014 * Excluding companies with major IFRS 10/11 restatements, i.e. BASF YPC Nanjing, Libya onshore, other Oil & Gas and Catalysts companies 8

9 Strong free cash flow generation Free cash flow* in billion ** H 2014 * Cash provided by operating activities less capex (in 2005 before CTA) BASF Capital Market Story October 2014 ** 2009 adjusted for re-classification of settlement payments for currency derivatives 9

10 Attractive dividend yield Dividend per share in CAGR 14% Dividend payments Dividend of 2.70 per share for 2013, an increase of 3.8% : Average annual dividend increase of ~14% Attractive dividend yield of 3.5% in 2013** Dividend yield above 3% in any given year since Dividend yield* 3.2% 3.1% 4.1% 3.8% 7.0% 3.9% 3.7% 4.6% 3.7% 3.5% BASF Capital Market Story October 2014 * Dividend yield based on share price at year-end ** Based on BASF share price of on Dec. 30,

11 Delivering consistent, long-term value Average annual performance with dividends reinvested Last 10 years September 2004 August 2014 Last 5 years September 2009 August % BASF +20.8% +4.9% Euro Stoxx % +9.6% DAX % +11.0% MSCI World Chemicals +13.9% BASF Capital Market Story October

12 Outlook 2014 confirmed Outlook 2014 We aim to increase our sales volumes excluding the effects of acquisitions and divestitures. Nonetheless, sales will decline slightly compared with 2013 due to the divestiture of the gas trading and storage business planned for autumn 2014 and negative currency effects. We expect a slight increase in EBIT before special items, especially as a result of considerably higher contributions from the Performance Products and Functional Materials & Solutions segments. We aim to earn a high premium on our cost of capital once again in Assumptions 2014 GDP: +2.5% (previous: 2.8%) Industrial production: +3.7% Chemical production: +4.4% US$ / Euro: 1.35 (previous: 1.30) Oil price (US$ / bbl): 110 BASF Capital Market Story October

13 Business review BASF strategy & growth targets Strategic levers BASF Capital Market Story October

14 Demographic challenges set the stage for the future of the chemical industry Nine billion people in 2050 but only one earth Resources, Environment & Climate Food & Nutrition Quality of Life Chemistry as enabler BASF Capital Market Story October

15 Key financial targets 2015 / 2020 are ambitious Growth targets Profitability targets Grow at least 2 percentage points above chemical production Earn a premium on cost of capital of at least 2.0 billion on average p.a Sales ~ 80 billion EBITDA ~ 14 billion EPS ~ Sales ~ 110 billion EBITDA ~ 22 billion BASF Capital Market Story October

16 Business review BASF strategy & growth targets Strategic levers Portfolio development Market approach Innovations for a sustainable future Investments Acquisitions Operational excellence BASF Capital Market Story October

17 Portfolio development Moving downstream towards customer industries ture, Construction, Consumer Goods, Health & Nutrition, Electronics, Energy & Resources, Transportation BASF Capital Market Story October 2014 ** Sales excluding Oil & Gas. Targets were published on November 29,

18 Portfolio development Towards more market driven and innovative businesses Acquisitions Catalysts Construction chemicals Water-based resins Pigments, plastic additives Oil & Gas Personal care & food Battery materials Functional crop care Omega-3 fatty acids Enzymes ~ 14 billion sales BASF core business Selected transactions 2004 today Strong partnerships Gazprom Monsanto Petronas Shell Sinopec Statoil Total Divestitures Printing systems Agro generics Vitamin premixes Styrenics Fertilizers Construction equipment, flooring and wall systems Natural gas trading and storage business ~ 16 billion sales* BASF Capital Market Story October 2014 * Without styrenics (transferred into Styrolution JV on Oct. 1, 2011). Natural Gas Trading: Closing expected in autumn

19 Market approach Cross-divisional customer industry approach BASF sales by first customer industry* Bubble Size: BASF divisional sales by first customer industry* / ** Consumer goods > 15 % Transportation > 15 % Construction > 10 % Energy & Resources < 10 % Monomers Dispersions & Pigments Care Chemicals Coatings Construction Chemicals Petrochemicals Intermediates Performance Chemicals Paper Chemicals Catalysts Performance Materials BASF Capital Market Story October 2014 * Excluding Oil & Gas, Crop Protection and Other numbers ** Nutrition & Health sales predominantly into Health & Nutrition market 19

20 Cross-divisional approach BASF s technology Verbund combined with customer know-how Lightweight tridion cell High performance foams Solar roof with transparent organic solar panels and OLED modules E-textiles Infrared-reflective film Infrared-reflective coating Multifunctional seat All-plastic wheel Daimler & BASF concept car Smartforvision BASF Capital Market Story October

21 Customer Verbund adidas and BASF Working together for disruptive innovation: Infinergy BASF Capital Market Story October

22 Strong commitment to innovation Innovations for a sustainable future R&D expenditures in billion Corporate Research 21% Oil & Gas 3% Agricultural Solutions 26% Functional Mat. & Sol. 20% Performance Products 20% Chemicals 10% Key facts 1.8 billion R&D expenditure in 2013, further increase of R&D spending planned in 2014 ~10,650 employees in R&D ~3,000 projects Research Verbund: Cooperations with ~600 excellent partners from universities, start-ups and industry Target 2015 and 2020: 10 billion in sales from innovations younger 5 years 30 billion in sales from innovations younger 10 years BASF Capital Market Story October

23 Chemistry-based innovations Growth and technology fields Global needs Key customer industries Growth fields Technology fields Batteries for Mobility Resources, Environment & Climate Transportation Agriculture Enzymes E-Power Management Functional Crop Care Materials, Systems & Nanotechnology Food & Nutrition Construction Energy & Resources Heat Management for Construction Lightweight Composites Raw Material Change Organic Electronics Quality of Life Consumer Goods Electronics Plant Biotechnology Water Solutions White Biotechnology Wind Energy Health & Nutrition... BASF Capital Market Story October

24 Growth field example: Enzymes Innovation-driven specialties for various markets Bakery Detergents Feed Existing business mainly with enzymes for animal nutrition Acquired Henkel's detergent enzyme technology Beverages Processed food Entered into research and license agreement with Dyadic to access C1-host technology Textile / Leather Pulp & Paper Successfully acquired enzyme biotechnology company Verenium Oilfield Biofuels Water The fungus Aspergillus niger is a powerful production host for feed enzymes. R&D pipeline is reinforced with several new projects Enzymes know-how leveraged with chemical ingredients Become a major player in enzyme technology; sales target of > 400million (2020) BASF Capital Market Story October

25 Investments Capex budget by segment and region* Capex budget by segment Capex budget by region Performance Products 15% Functional Materials & Solutions 12% Agricultural Solutions 7% Other 13% 20 billion Chemicals 33% Oil & Gas 20% Asia Pacific 18% South America 4% Other 4% North America 25% 20 billion Europe 49% BASF Capital Market Story October

26 Investments Major projects Ammonia and gas-to-propylene in USA* MDI plant Chongqing, China Acrylic acid complex Camacari, Brazil TDI plant Ludwigshafen, Germany Aroma Ingredients Kuantan, Malaysia Expansion oil & gas activities BASF Capital Market Story October 2014 * Under evaluation 26

27 Acquisitions will contribute to profitable growth in the future We want to acquire businesses which Generate profitable growth above the industry average Are innovation-driven Offer a special value proposition to customers Provide a minimum return on investment of 8% p.a. after tax Are EPS accretive by year three at the latest Reduce earnings cyclicality Strategic acquisition criteria Financial acquisition criteria BASF Capital Market Story October

28 Operational excellence programs STEP program on track: ~ 1 billion earnings contribution by 2015 Annual earnings contribution in million 3,000 2,000 1,000 STEP program Targeted annual earnings contribution of ~ 1 billion by end of 2015 Optimization of processes and structures in all regions, e.g. manufacturing, maintenance supply chain engineering, best-cost country sourcing Project timeline: Former cost saving programs NEXT STEP Program is on track Total of ~ 600 million achieved by the end of 2013 One-time cost & investments: ~ 1 billion BASF Capital Market Story October

29 BASF Share information Ordinary Share information Symbol: BAS Trading Platform: Deutsche Börse ISIN: DE000BASF111 IPO: January 30, 1952 Type of shares: Registered shares Trading lot: none, one share is tradable Free float (according to Deutsche Börse): 100 % Number of subscribed shares outstanding (as of 12/31/2013): 918,478,694 ADR information Symbol: BASFY OTC Trading Platform: OTCQX CUSIP: Ratio: 1 ADR : 1 Ordinary Share Depositary bank: Deutsche Bank Trust Company Americas Tel: (New York broker desk) Tel: (London broker desk) adr@db.com Website: Depositary bank s local custodian: Deutsche Bank AG, Frankfurt BASF Capital Market Story October

30 Appendix I: Chemicals Day May 22, 2014 BASF Capital Market Story October

31 Balanced portfolio of products for internal supply and merchant market sales Internal supply driven captive use only Industrial gases Acetylene Purified ethylene oxide Formaldehyde Ammonia Cracker products Butanediol Caprolactam PBT** base resin Acrylic acid MDI Merchant market driven TDI PolyTHF Amines Higher alcohols Polyalcohols and specialties Formic acid Inorganic salts Glues and resins BASF Capital Market Story October 2014 ** Polybutylene terephthalate 31

32 Chemicals segment grows by selling into the BASF Verbund and to the market Sales to other BASF segments Sales to 3 rd parties * IFRS 10 & 11 impact: - 1.3Bn; Impact of new segment structure: + 5.3Bn BASF Capital Market Story October 2014 ** Without Catalysts (now part of Functional Materials & Solutions segment) 32

33 Chemicals with stable profitability, little correlation to oil price EBITDA margin Chemicals / oil price Index 2001 = Oil price EBITDA margin Chemicals (as % of sales) * 2007* restated 2013 BASF Capital Market Story October 2014 * Without Catalysts (now part of Functional Materials & Solutions segment) 33

34 Chemicals is a strong earnings contributor EBIT after cost of capital* in million 2,000 1,500 1, ** 2007** restated EBIT after cost of capital Chemicals Chemicals earned a premium on cost of capital even during the 2008 / 2009 recession*** * EBIT after cost of capital concept was introduced in ** Without Catalysts (now part of Functional Materials & Solutions segment) BASF Capital Market Story October *** The former Plastics segment also earned a premium on cost of capital during the 2008 / 2009 recession.

35 Chemicals generates strong and steady free cash flow Cash flow Chemicals in million 4,000 3,000 2,000 1, , * 2007* restated Operating cash flow (EBITDA) Free cash flow (EBITDA additions to plant, property & equipment) 2013 Since 2001, Chemicals contributed ~ 17 billion of free cash flow to BASF Group BASF Capital Market Story October 2014 * Without Catalysts (now part of Functional Materials & Solutions segment) 35

36 Increasing usage of alternative feedstock in global chemicals market BASF Capital Market Story October

37 Raw material supply and integration concepts will define competitiveness North America New capacities based on shale gas Export of NGLs*/ LPG** and base-products China Strong domestic demand will drive capacity additions Abundant coal reserves drive coal-to-chemicals investments Expected to remain a net importer of many basic chemicals. Europe Ongoing restructuring of olefins and polyolefins industry Focus on innovative chemistry Integrated production setups will remain competitive Middle East Diminishing feedstock advantage due to shale gas (USA) and coal (China) Export hub for raw materials and base-products * Natural Gas Liquids ** Liquefied Petroleum Gas South America Focus on renewable resources Will remain net importer of chemicals from the U.S. BASF Capital Market Story October

38 Shale gas in the U.S.: Lower energy and feedstock cost Game changer shale gas Increased U.S. shale gas production disconnected crude oil prices from natural gas prices in North America Increased production of natural gas liquids (NGLs): ethane, propane, butane NGL price drop drives shift to lighter cracker feed slates Improved profitability of light feed crackers Narrow cracker output Source: IHS Inc. The use of this content was authorized in advance by IHS. Any further use or redistribution of this content is strictly prohibited without written permission by IHS. All rights reserved. Natural gas price Germany: Statistisches Bundesamt Grenzübergabepreis Germany BASF Capital Market Story October

39 Shale gas is beneficial for methane and ethane based chemistry Natural Gas Liquids Ethane Propane Butane Cracker Feed Composition of shale gas Methane Power plants Ammonia Methanol Low transportability of ethane Shift to ethane crackers Very limited transportability of methane Propane and butane easy to transport Export with link to global market Methane to remain an abundant product with low pricing in North America (despite LNG projects) Methane and ethane to retain their advantageous cost position in North America BASF Capital Market Story October

40 Ammonia joint venture* enables low raw materials costs for BASF downstreams Hydrogen** Long-term sourcing contracts Nitrogen** Improved cost position for BASF s downstream products World-scale producer economics plant with focus on captive demand only (BASF) Yara-BASF joint venture Ammonia Yara merchant market Site: BASF Verbund site Freeport, Texas Capacity: 750 kt p.a. Advantages of hydrogen & nitrogen based technology: Caprolactam Isocyanates BASF Group Amines Lower capital investment No greenhouse gas emissions Faster execution BASF Capital Market Story October 2014 * Project under evaluation ** Hydrogen and nitrogen are available in the Freeport area 40

41 Gas-to-propylene complex* covers internal demand at attractive conditions Propylene supply North America Methane (from shale gas) Methanol Flexible feed (NGL s, Naphtha) Cost leading gas-to-propylene technology covers supply gap U.S. Gulf Coast location World-scale plant Start-up: ~2019 Propylene Propylene (Port Arthur cracker) Port Arthur cracker and new on-purpose propylene complex to cover entire captive propylene demand Acrylic acid Oxo-alcohols Polyols Downstream products Mid-term no sales to merchant market Lower cost than alternative PDH technology BASF Capital Market Story October 2014 * Project under evaluation 41

42 Chemicals supplies key raw materials to BASF downstream segments BASF Capital Market Story October

43 Close to entire cracker output in Ludwigshafen is used within Verbund Cracker products Ludwigshafen Ethylene Propylene Butadiene Raffinates Aromatics <5% >95% Merchant Market Value chains of the BASF Verbund BASF-YPC Nanjing supply for captive demand: 2006: 60% 2014: 75% BASF SE, Ludwigshafen, Germany BASF BASF Investor Capital Market Day Chemicals Story October segment 2014 Key note speech, May 22,

44 Chemicals is at the heart of the BASF Production Verbund Additional Verbund benefits Chemicals segment Downstream divisions Transfer pricing Additional Verbund benefits Flexible planning along value chains High security of supply, low logistics costs, no sales and sourcing costs Joint quality management Joint engineering and process development Cross-functional knowledge exchange Additional capacity at Verbund sites dilutes fixed costs Philosophy of transfer pricing Safe and flexible supply at competitive prices Transfer prices linked to market prices No cross-subsidizing Value driven management in all steps of the value chain BASF Capital Market Story October

45 Capex focused on organic growth as well as on bottom-line improving projects Consolidated sales indexed (2000 = 100) Capex as % of sales Consolidated sales Chemicals segment Capex outlook 16% 14% 12% % 200 8% 150 6% 100 4% 50 0 Capex as % of sales Chemicals segment * 2007* restated 2% 0% BASF Capital Market Story October 2014 * Without Catalysts (now part of Functional Materials & Solutions segment) 45

46 BASF s Chemicals segment: The success story continues! Sales Chemicals in billion CAGR % 2013 Target 2020 Intersegmental transfers Sales to third parties EBITDA Chemicals in billion CAGR % 2013 Target 2020 EBITDA Chemicals EBITDA upside range Chemicals will continue to contribute to BASF profit Chemicals enable growth of downstream businesses Chemicals benefit from downstream growth Investment projects mainly improve cost positions Key success factors Operational and commercial excellence Process innovation Focused and disciplined capex plan Further Verbund integration BASF Capital Market Story October

47 BASF s Chemicals segment is a strong cash and earnings contributor We will continue to strengthen the Verbund, create synergies and add value maintain our high level of profitability through process innovations and stringent cost management grow externally with the chemicals market Our strategic focus is to enable and support growth of BASF s downstream segments BASF in emerging markets Shale gas is an opportunity for BASF BASF Capital Market Story October

48 Appendix II: Oil & Gas Roundtable September 18, 2014 BASF Capital Market Story September

49 Share of Oil & Gas in BASF portfolio Average EBITDA* (billion p.a.) Oil & Gas 2.3 (24%) Cumulative capex** (billion ) Oil & Gas 6.4 (31%) BASF Group w/o Oil & Gas 7.4 (76%) BASF Group w/o Oil & Gas 14.5 (69%) Key facts : Oil & Gas: Solid profit contributor to BASF Group Oil & Gas accounted for ~30% of BASF Group capex Oil & Gas will remain a significant contributor to BASF s total EBITDA Capex share of Oil & Gas business in BASF s portfolio will decline * Excluding non-deductible oil taxes; restated figures from 2012 onwards in accordance with changes in IFRS ** Including additions to property, plant, equipment resulting from acquisitions, capitalized exploration, restoration obligations BASF Roundtable Oil & Gas, September 18, 2014 and IT investments; restated figures from 2012 onwards in accordance with changes in IFRS 49

50 Strong earnings contribution from Oil & Gas Net income Oil & Gas (million ) 2,000 1,780 1,500 1, ,064 1, * 1 HY 2014 * Positive impact from special income due to the deconsolidation of Gascade Gastransport GmbH BASF Roundtable Oil & Gas, September 18, 2014 and the disposal of a share in the Edvard Grieg oilfield (BAS1F Report 2013, pp ) 50

51 Oil & Gas Strong free cash flow contribution to BASF Group Cash flow Oil & Gas* (million ) 2,000 1,500 1, Operating cash flow Oil & Gas Free cash flow** Oil & Gas 40% of operating cash flow to BASF Group (avg ) BASF Roundtable Oil & Gas, September 18, 2014 * Wintershall cash flow ** Free cash flow: Operating cash flow less payments related to property, plant and equipment and intangible assets 51

52 Oil & Gas Focus on upstream activities Oil & Gas value chain Upstream Midstream Downstream Exploration / Development / Production Transport Storage / Trading Focus on attractive E&P activities Maintain gas transport business Exit natural gas storage and trading business BASF Roundtable Oil & Gas, September 18,

53 Clear regional focus: Four core regions and one development region Europe Russia. North Africa Middle East South America Operating company Current activities Core region Development region BASF Roundtable Oil & Gas, September 18,

54 Regional footprint 2013 (1) Production by region 2013 Production Europe 18% North Africa/ Middle East 9% 132 million boe Russia 53% Russia stands for roughly 50% of total production In 2013, natural gas accounted for approx. 75% of total production South America 20% Proved 1P reserves by region 2013 Europe 13% North Africa/ Middle East 9% South America 13% 1.5 billion boe Russia 65% Reserves Russia provides strong reserve base Gas accounts for approx. 75% of total reserves BASF Roundtable Oil & Gas, September 18,

55 Regional footprint 2013 (2) Sales E&P* by region 2013 Operating income** E&P by region 2013 Europe 38% Europe 36% 3.3 billion Russia 27% 1.2 billion Russia 49% North Africa/ Middle East 26% South America 9% North Africa/ Middle East 1% South America 14% Strongest earnings contribution from Russia * In accordance with US-GAAP (SFAS No. 69); see supplementary information on Oil & Gas segment (BASF Report 2013, pp. 216) BASF Roundtable Oil & Gas, September 18, 2014 ** Operating income represents only those revenues and expenses directly associated with Wintershall s oil and gas production 55

56 Reserves and R/P 1P Reserves* (million boe) R/P (years) Key facts 1, R/P ratio increased to 11 years 1,400 1,200 1, ** Total 1P reserves amounted to ~1.5 billion boe (2013) Gas accounts for approx. 75% of total reserves Strong contribution to reserve replenishment from assets in Norway and Russia Reserve Replacement Rate (RRR, in percent) Oil Natural gas R/P * According to SEC guidelines; Libya onshore 51% BASF Roundtable Oil & Gas, September 18, 2014 ** 2013 adjusted to new conversion factor from m 3 gas to barrel of oil equivalent (5,600 scf = 1 boe instead of 6,000 scf = 1 boe) 56

57 Oil & Gas Excellent further growth opportunities Production volumes (million boe) 200 > ~190 Key facts Continue to significantly invest in core and development regions Capex* of ~ 4 billion between 2014 and 2018, thereof 70% Europe and Russia 15% North Africa/Middle East 15% South America target 2018 target South America Russia Europe North Africa/Middle East BASF Roundtable Oil & Gas, September 18, 2014 * Without capex in non-consolidated participations 57

58 Active portfolio management Focus on promising projects Acquisitions (closing dates) Norway 25% in Maria Divestitures (closing dates) Own/joint-operated Non-own operated Argentina 50% in Aguada Federal Norway 32.7% in Brage Norway 15% in Gjøa 30% in Vega 24% in Aasta Hansteen*, Add. 5% in Gjøa, 19% in Asterix Russia** 25% in Achimov IV/V Norway Add. 24.5% in Vega Norway Add. 2.5% in Brage 15% in Luno II Expected closing Norway Shares of 14 licences UK North Sea 14 licenses Germany** 50% of WINGAS WIEH, WIEE, Astora Germany 15.79% of VNG Netherlands** 50% of Wintershall Noordzee BASF Roundtable Oil Oil && Gas, September 18, 18, 2014 * Including 13.2% in Polarled Pipeline ** Closing expected in autumn 2014; transaction financially retroactive to April 1,

59 Russia Production ramp up Achimgaz Production development Achimgaz Block IA* (%) Wells in production Pilot phase Full field development Plateau production Plateau production by 2018: Up to 8 billion m 3 p.a.* BASF Roundtable Oil & Gas, September 18, 2014 * 100% share. Russian Standard Conditions (RSC) 59

60 Status of the asset swap with Gazprom Timeline Oct. signing of framework agreement Dec. approval by EU Commission Autumn expected closing Planned production start area IV/V Nov. signing of legally binding basic agreement Effective date: April 1 Implementation of the swap (e.g. developing new company structure) Dec. signing of final agreement BASF Roundtable Oil & Gas, September 18, 2014 Activities to be divested contributed in total ~ 12 billion to sales and ~ 500 million to EBITDA of BASF Group in

61 Recent transaction with Statoil Strategic rationale of the transaction To strengthen Wintershall s position in Norway by increasing participation in producing oil and gas fields To participate jointly with Statoil in promising development project Aasta Hansteen To get access to additional reserves and resources (2P/2C) of ~170 million boe and assets with material exploration perspectivity To increase production of Wintershall Norge from currently around 40,000 boe/day to about 60,000 boe/day To expand position as field operator in Norway and to gain experience with subsea operations by taking over operatorship in the Vega field* To significantly increase Wintershall s EBIT and future operating cash flow BASF Roundtable Oil & Gas, September 18, 2014 * Pipeline project will provide route for produced gas from Aasta Hansteen field to onshore processing facilities 61

62 Recent transaction with Statoil Transaction summary Wintershall expands its oil and gas production and reserves in Norway Intensification of the cooperation with Statoil, the leading Norwegian oil and gas major, on exploration and development projects Wintershall acquires shares in assets from Statoil containing reserves and resources (2P/2C) of ~170 million boe and a stake in the Polarled pipeline project* Purchase price of US$1.25 billion plus up to US$50 million if Aasta Hansteen field development is executed according to current project plan Effective date January 1, 2014 Closing expected by the end of 2014 BASF Roundtable Oil & Gas, September 18, 2014 * Pipeline project will provide route for produced gas from Aasta Hansteen field to onshore processing facilities 62

63 Production growth from solid project pipeline (major projects) Achimgaz (FFD) Achimov Blocks IV / V* Norway Knarr Edvard Grieg Aasta Maria Hansteen Skarfjell F 17 Area Ravn Hibonite Vega Pleyade CMA1 extension Unconventionals Fenix Block 4N Shuwaihat Length of development phase Length of development phase BASF Roundtable Oil & Gas, September 18, 2014 * Closing expected autumn

64 Oil & Gas Outlook Financial performance Sales to 3 rd parties: EBIT before special items: Net income: billion billion billion Sales expected to be considerably below 2013 due the asset swap with Gazprom. Slight increase in EBIT before special items due to the first all-year inclusion of the acquired activities from Statoil** and the expansion of the Achimgaz production. Production volumes Total production: 132 mmboe Production expected on similar level despite the suspension of the onshore production in Libya. Sales volumes Natural gas sales: 52 billion m³ Divestment of natural gas trading and storage activities planned for autumn Investments/ Expenditures Investments* 2013: thereof E&P: ~ billion ~ billion Investments*** : (Predominantly in E&P) ~ 4.0 billion thereof Natural Gas Trading: ~ billion Macroeconomic assumptions Average oil price (brent): Average exchange rate: $109 per barrel $1.33 per Forecast 2014: $110 per barrel $1.35 per * Incl. tangible assets from acquisitions, activated exploration expenditures, without capex in non-consolidated participations BASF Roundtable Oil & Gas, September 18, 2014 ** Former Statoil transaction with closing in 2013 *** Without tangible assets from acquisitions and activated exploration expenditure, without capex in non-consolidated participations 64

65 BASF Capital Market Story October