Dr.

Andreas Kreimeyer
Roadshow Netherlands
April 4, 2008

Looking with confidence

Stronger to future
into the 2008

Mar 2008
 BASF – The Chemical Company

• No 1 chemical company worldwide

with balanced portfolio and a value-creating
long-term strategy
• Competitive advantage based on unique
Verbund concept and operational excellence
• Superior growth opportunities through strong
positioning in growth markets, acquisitions in core
businesses and excellent innovation platform
• Sustainable value creation through attractive
dividend policy and continuous share buyback
program

2
1 | BASF Business Development
2 | Operational Excellence
3 | Superior Growth Opportunities
4 | Sustainable Shareholder Value
 BASF’s balanced portfolio
Focusing on our core activities

16% Agricultural Solutions

Functional
Solutions
6%
15%
Performance
Products
Chemical
Activities 18% Oil & Gas

Plastics
17%
Chemicals
16%

2007 total sales: €58 billion

including other activities 2007: €6.6 billion (12%)

Sales of 2007 have been restated according to new segment structure as of January 1, 2008
4
 Strong EBIT growth
EBIT before special items by activity CAGR 2003-2007:
in million €
9,000
7,975
• EBIT bef. special items
8,000 7,590 BASF Group: 26%
7,000 6,512 • EBIT bef. special items
6,000 BASF Group excl.
5,395
noncompensable
5,000
oil taxes: 26%
4,000
3,223
3,000
• EBIT bef. special items
2,000 Oil & Gas: 22%
1,000
• EBIT bef. special items
0 Chemical activities: 30%
2003* 2004* 2005* 2006** 2007**
• EBIT bef. special items
Chemical activities Agricultural Solutions*** Oil & Gas Agric. Solutions: 16%
• 2003 based on German commercial code, 2003-2005 incl. Styrenics commodities and corporate costs
** 2006-2007 according to new segment structure, Styrenics in Other, excl. corporate costs
5 *** 2003-2005 incl. Nutrition
 Strong free cash flow and
capex discipline

Billion €
Cash Flow
Cash provided by operating activities • 2007 operating cash flow
Payments related to property, plant and at €5.8 billion
equipment and intangible assets (capex)
Free cash flow* • 2007 free cash flow* at
€3.2 billion
6

5 Capex
• Capex below
4
depreciation
3 • Capex budget
2008-2012:
2
€11.0 billion
1

0
2002** 2003** 2004 2005 2006 2007

* Cash provided by operating activities less capex (in 2005 before CTA)
** According to German commercial code
6
 Increasing premium on our cost of capital

Premium on cost of capital Calculation of EBIT after

in billion €
cost of capital:
2,895
3.000 Million € 2007
2,354
2,126
1,982 EBIT BASF Group 7,316
2.000
less EBIT for
activities not assigned
1.000 to the segments* (293)

less noncompensable
0 foreign income taxes
for oil production 1,302
-579 -593
-1.000 less cost of capital** 3,412

EBIT after cost

-2.000 of capital 2,895

-2,554
-3.000
2001 2002 2003 2004 2005 2006 2007 * This net expense is already provided
for in the cost of capital percentage
** 9% on the average operating assets
of the segments
7 As of 2004, according to IFRS
 Positive outlook 2008

Basic assumptions for 2008: Gross domestic product forecast* (%)

8.0
• Global GDP and chemical production growth 7.4
6.0
of 2.8% 4.8

• Declining interest rates in the U.S. in the 4.0

2.8
course of 2008 with moderate knock-on 2.0
1.6 1.6
2.0
effects for Europe
0
• Average exchange rate of $1.45 per €
Chemical production forecast* (%)
• Average oil prices of $78/bbl
8.0

6.0 7.2
3.7
4.0 2.8
In 2008, assuming there are no 2.0 1.5
0.1
changes made to our portfolio, we 0

aim to increase sales and improve (0.8)

EBIT before special items slightly. United States Asia excluding Japan
Western Europe South America
Japan World

8 * Real changes compared with 2007

 What are the near term challenges?

9
 BASF answers

10
1 | BASF Business Development
2 | Operational Excellence
3 | Superior Growth Opportunities
4 | Sustainable Shareholder Value
 The Verbund

The BASF Verbund-Concept

Plastics & Agro-

Oil & Base
Intermediates Performance Chemicals
Gas Chemicals
Chemicals & Nutrition

• Integrated production
• Secured raw material supply
• Common infrastructure
• Combined logistics
• Integral research platforms
• Integral customer interaction
• Implemented in all major regions

Benefits
• Highly efficient production = cost leadership
• Resource efficiency and waste reduction = leadership in sustainability
• Integral knowledge management = leadership in innovations (>1,000 patents p.a.)
• Customer orientation = supplier of choice
12
 Verbund – A management philosophy

Vertical
Verbund

Logistics

Energy

Know-how

Purchasing

Customers

Partners

HR

a.o.
Horizontal Verbund
Value adding chains
13
 Strong forward integration in a large
portfolio of value added products (I)
Raw materials Selected products
Surfactants Detergents

Ethylene EO Ethylene glycol Engine coolants

Ethanolamines Process chemicals

PO Polyurethanes

Propylene Acrylic Acid Superabsorbents

Oxo-C4 Butanols Solvents

Naphtha,
LPG 2-Ethylhexanol Plasticizers

C4 Butadiene Dispersions

Isobutene Polyisobutene Fuel additives, sealants

Benzene Cyclohexane Caprolactam Polyamide

Ethylbenzene Styrene Polystyrene

14 Chemicals segment
 Strong forward integration in a large
portfolio of value added products (II)
Raw materials Selected products

Natural Acetylene Butanediol THF/pTHF® Textile fibers, polyurethanes

Gas
Coating resins,
Vinyl ether
adhesive raw materials

Syngas Me-Formiate Formic acid Food conservations

Methanol Formaldehyde Glues,

impregnating resins
Ammonia Urea Melamine

NOx Nitrite, Nitrate Glass industry, fertilizers

Chemicals, electronics,
Sulfur SO2, SO3 Sulfuric acid
fertilizers

Salt Cl2, NaOH EDC PVC

Alcoholates Pharma, Agro

15 Chemicals segment
 Constantly improving our cost base
Restructuring and reorganization

Annualized cost savings Global Efficiency • Ludwigshafen

in million € Improvement €480 million as of mid 2005
Program
• Antwerp
1500
1,500 Antwerp
>€70 million as of end 2006
Europe
• Europe
1250
1,250 NAFTA €250 million as of end 2006
Ludwigshafen • NAFTA
1,000
1000 $400 million as of mid 2006

750
Global Efficiency
500 Improvement Program
€210 million by 2007
€300 million by 2008e
250

0
2003 2004 2005 2006 2007 2008

16
1 | BASF Business Development
2 | Operational Excellence
3 | Superior Growth Opportunities
4 | Sustainable Shareholder Value
 Superior growth opportunities

Good position in Active portfolio Excellent

growth markets optimization innovation platform

• Asia • Acquisitions • Market-driven

• High growth • Divestments processes
businesses • Strategic • Innovative products
- Oil & Gas partnerships • Innovative business
- Performance models
Products

Excellent platform to enable faster-than-market growth

18
 “Gas for Europe” concept
Increasing demand for imported natural gas in Europe

EU 27
in billion m³ 620-680
Achimgaz
550
~ 80%
~ 60% Yushno
Russkoye
~ 40% ~ 20% Southern
2006 2020 North Sea

Imports
WINGAS/WIEH
Local production

Romania

Caspian Sea

Wintershall operations
and projects
North Africa

• Combining gas production locations around Europe with downstream business

• Long-term gas supply agreement with Gazprom until 2036
• Joint E+P projects with Gazprom in Russia and potentially other countries
• Partner in Baltic Sea pipeline (Nord Stream)
19
 Profitable growth in Oil & Gas
Expanding our partnership with Gazprom

Nord Stream
• 1,200 kilometer offshore natural gas pipeline
• Onshore connection to German pipeline grid
• Total investment: €10.6 billion (100%); BASF share €3.1 billion

Achimgaz (50% BASF, 50% Gazprom)

• Reserves: 200 billion m³ natural gas, 40 million tons condensate
• Development cost: €1.1 billion (100%); BASF share €0.6 billion
• Projected production start H1 2008

Yuzhno Russkoye
• Large Western Siberian gas field with about 600 billion m³
gas reserves
• Development cost: €1.9 billion (100%); BASF share €0.7 billion
• Production started end of 2007
• BASF economic interest: 35% minus one share
 Consistent portfolio management towards
higher returns and reduced cyclicality
Selected transactions
Major acquisitions Major divestitures
1998-2007

• Crop protection • Pharmaceuticals

(AHP, Fipronil, seed
BASF • Fertilizers
treatment)
core • Refineries
• Superabsorbents businesses
• Decorative paints
• Oil & Gas (NL)
• Fibers
• Engineering plastics
• Printing systems
• Electronic chemicals
• Polyolefins (Basell)
• Custom synthesis Powerful
• Polystyrene
• Catalysts/pigments partnerships
North America
• Construction • Total
• Agchem generics
chemicals • Shell
• Premix
• Water-based resins • Gazprom
• Sinopec
€13 billion • Petronas €10 billion*
(Sales) • Monsanto (Sales)

21 * Including non-consolidated sales from BASELL

 Innovation as the foundation of
further growth

• Portfolio of more than

Corporate Research 120,000 patents
(incl. Plant Biotechnology)
• Targeted annual sales
Chemicals from product innovation*:
– 2010: €4 billion p.a.
24% – 2015: €5 billion p.a.
10% [thereof 10-20% annual top-line
Plastics growth]

12% • Five growth clusters

defined: Nanotechnology,
Energy Management,
23% Plant Biotechnology,
Agricultural 17% White Biotechnology,
Solutions Raw Material Change
14% Performance
Products • Targeted annual sales
from growth clusters:
– 2010: €0.5-1 billion p.a.
Functional Solutions
– 2015: €2-4 billion p.a.
[100% annual top-line growth]
R&D expenditures 2008: €1.45 billion * New or improved products or new
22 applications, max. 5 years on market
 Target markets of growth clusters

Plant biotechnology More efficient agriculture, improved nutrition,

plants as renewable raw materials

Biopolymers, chemicals via biocatalysis and

White biotechnology
fermentation, performance biologicals

Nanotechnology Display materials, printed electronics, coatings,

foams, medical applications

From oil to gas, to coal and to renewable

Raw material change
raw materials

OLED, fuel cells, organic photovoltaic, lithium

Energy management
ion batteries

23
 Collaboration of BASF and Monsanto
creates unified focus on yield

Discovery Development Commercialization Collaboration

creates intensified
Licensed brands
yield & stress tolerance
Monsanto
pipeline
discovery
Regional brands
program • Step up volume of
BASF lead genes
discovery National brands
• Develop stream
program
of successive updates
to create a ‘family of
products’ in each crop
• Maintaining • Jointly funded at • Uses Monsanto’s • Increase certainty of
independent 50/50 three commercial commercial success
Structure

discovery programs • Potential $1.5 channels

• Projects nominated billion R&D budget • Value shared • Focus on corn,
for development to • Harnesses 60% Monsanto, soybeans, cotton
jointly managed 40% BASF and canola
Monsanto’s
board infrastructure

24
 In the following years we expect to grow
sales on average by two percentage
points per year above chemical market
growth*.

We expect to earn at least our cost of

capital in any given year.

We strive to earn our cost of

capital in all segments in any given year.

* Real growth of chemical market is expected to be around 3% until 2010

25
1 | BASF Business Development
2 | Operational Excellence
3 | Superior Growth Opportunities
4 | Sustainable Shareholder Value
 Ambitious dividend policy

Dividend in € per share • Dividend increased in

11 of the last 13 years,
5.00
unchanged in remaining
2 years
4.00 • Dividend increase of 30%
. a. to €3.90 per share
%p
+15 for 2007 proposed
3.00
• Attractive dividend yield
of 3.8% in 2007*
2.00
Dividend Policy:
• We aim to increase our
1.00
dividend each year, or
at least maintain it
at the previous year’s
0.00
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
level

Dividend Special dividend * Based on the share price of

December 31, 2007 (€101.41)
27
 Increased share buyback program

Million €
• 25.6% of shares
3,000
outstanding bought
3,000
back for €8.3 billion
from 1999 to 2007
• €1.9 billion spent on
buybacks in 2007
2,000
• €635 million spent on
1,435 buybacks from
1,300
Jan 1 to Feb 20, 2008
938
• €3 billion planned for
1,000
700 726 buybacks in 2007 and
500 500 2008
256 • Continuation of share
buybacks
0
1999 2000 2001 2002 2003 2004 2005 2006 2007/
2008
Actual Planned
28
 Creating sustainable value
Investment in BASF shares (1998-2007)

Average total annual return in %*

BASF 15.6%
(in Euro)
Europe

EuroStoxx 50 Return 7.8%

DAX 6.6%

S&P 500 5.9%

Composite
(in US$)
U.S.

DJ Industrial 7.4%
Average

* with dividends reinvested

29
 On track to value
• Strong, broad and balanced portfolio
• Operational excellence based on unique
Verbund concept
• Focused on profitable growth:
– Strong positions in growing markets
– Select acquisitions
– Excellent innovation platform
• Committed to shareholder returns

30
 Disclaimer

This presentation may contain forward-looking statements. These

statements are based on current expectations, estimates and
projections of BASF management and currently available information.
They are not guarantees of future performance, involve certain risks and
uncertainties that are difficult to predict and are based upon
assumptions as to future events that may not prove to be accurate.

Many factors could cause the actual results, performance or

achievements of BASF to be materially different from those that may be
expressed or implied by such statements. Such factors include those
discussed in BASF’s Report 2007 on pages 106ff. We do not assume
any obligation to update the forward-looking statements contained in this
presentation.

31
32
 Financial highlights 2007
Review 2007
Million €
• Sales up 10%
2007 2006 Δ% volumes 5%, prices 2%, portfolio
7%, currencies (4)%

Sales 57,951 52,610 +10 • Highest sales growth in

Chemicals segment
EBITDA 10,225 9,723 +5
EBIT before special items 7,614 7,257 +5
EBIT 7,316 6,750 +8
Income before taxes and 6,935 6,527 +6
minorities
Net income 4,065 3,215 +26
EPS* (in €) 8.32 6.37 +31

* Based on an average of 488 million shares outstanding in 2007

(average 2006: 504 million shares)

33
 Segment performance
FY 2007 vs. FY 2006

Million €

Sales Δ% EBIT* Δ
Chemicals 9,358 +2 1,888 +19
Plastics 9,976 +5 1,261 +5
Performance Products 8,862 +4 712 +6
Functional Solutions 9,491 +61 557 +18
Agricultural Solutions 3,137 +2 526 +31
Oil & Gas 10,517 (2) 3,031 (7)
thereof Exploration & Production 4,365 (4) 2,486 (6)
Natural Gas Trading 6,152 0 545 (10)
Other 6,610 +14 (361) (8)

*Before special items

34
 BASF’s segments and divisions
up to December 2007

Chemicals Plastics Performance Agric. Products Oil & Gas

Products & Nutrition

Inorganics
Inorganics Styrenics
Styrenics Construction
Construction Agricultural
Agricultural Oil
Oil &
& Gas
Gas
Chemicals
Chemicals Products
Products

Catalysts
Catalysts Performance
Performance Coatings
Coatings Fine
Fine
Polymers
Polymers Chemicals
Chemicals

Petrochemicals
Petrochemicals Polyurethanes
Polyurethanes Functional
Functional
Polymers
Polymers

Intermediates
Intermediates Performance
Performance
Chemicals
Chemicals

35
 BASF’s segments and divisions
Effective January 1, 2008

Chemicals Plastics* Performance Functional Agricultural Oil & Gas

Products Solutions Solutions

Inorganics
Inorganics Performance
Performance Acrylics
Acrylics &
& Catalysts
Catalysts Crop
Crop Oil
Oil &
& Gas
Gas
Polymers
Polymers Dispersions
Dispersions Protection
Protection

Intermediates
Intermediates Polyurethanes
Polyurethanes Care
Care Coatings
Coatings
Chemicals
Chemicals

Petrochemicals
Petrochemicals Performance
Performance Construction
Construction
Chemicals
Chemicals Chemicals
Chemicals

*Styrenics are reported under „Other“ following the transferal of the Specialty Plastics and Foams
business units to the Performance Polymers division as of January 1, 2008.

36
 BASF’s carbon balance 2006
CO2 savings vs emissions

Emissions for raw materials,

3 : 1 production and disposal

of all BASF products

87 million t/a

140 Housing
Total savings of
CO2 emissions
through use of
BASF products 30 Automobiles
over the lifecycle
48 Industry

34 Additional products Emissions of CO2 equivalents

252 million t/a Savings of CO2 equivalents
37
 Verbund of Value Chains:
Example Ludwigshafen
Propionic aldehyde Propanole
Vinylethers
Propionic acid Raw
Oxygen Ethylenimin
Air
Polystyrene
styropor
Ethanol amine
Diethanol amine Polymin
materials
Natural gas Acetylene Styrene
Ethyl benzene C13-C15-alcohols Basic
Naphtha Ethylene
Ethylene oxide Glycole ethers Glyoxal molecules
Propylene
C4-cut Oxo alcohols Lutensol-brands
Sb-copolymer Plasticizers
Intermediates
Ammonia Polyisobutene Keropur
Phosphate Nitric acid Plurafac-brands
Pyrrolidone
Commercial
Potassium Fertilizers Butyrolactone
chloride
Nitrogen oxide N-methylpyrrolidone products
Tetrahydrofuran Poly tetrahydrofuran
Methanol
Formaldehyde Pom
Metyl acrylate Ethylenediamine
Butanediol Trilon-brands
Methyl amines DMT
Vacuum residue Hydrogen Ultradur-brands
Neopentylglykol
Hydroxylamine Hexanediol
Hydrogen cyanide Ethylhexanol
Acrylic acid Acrylic acid ester Dispersions
Carbon oxide Oxo C4 Butyraldehydes Butylacetate
Formic acid Butanoles
Acetic acid
Carbon dioxide Carbon dioxide liqu. Carbon dioxide solid
Urea Urea-formaldehyde-
Melamine condensation products
Salt Chlorine Vinylchloride* Polyvinylchloride* PVC*
Propylene oxid Propyleneglycoles Separoles
Caustic soda
Na-nitrite, -nitrate Rongalites
Na-sulfites Rongales
Sulfur Sulfur dioxide Na-salts of Na-bisulfites Blankites
Sulfuric acid
Hydrosulfites Lutinol E
Benzene Sulfuric acid
Textil chemicals Ah-salts
Cyclohexane Adipic acid Polyamides
Caprolactam
O-xylene PSA
38 *Ludwigshafen only, within JV