basf interim report 3rd quarter 2014

Third Quarter 2014 Financial highlights October 24, 2014

BASF with higher sales and earnings despite declining demand

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.

2 BASF Q3 2014 Analyst Conference Call October 24, 2014

Q3 2014: BASF with higher sales and earnings despite declining demand

Sales development Period Volumes Prices Portfolio Currencies

Q3’14 vs. Q3’13 7% (4%) 0% 0%

3

Business performance Q3’14 vs. Q3’13 Q1-Q3’14 vs. Q1-Q3’13

Sales €18.3 billion +3% €56.3 billion +1%

EBITDA €2.5 billion +1% €8.2 billion +4%

EBIT before special items €1.8 billion +9% €6.0 billion +5%

EBIT €1.8 billion +8% €6.1 billion +8%

Net income €1.0 billion (5%) €3.8 billion +3%

Reported EPS €1.14 (5%) €4.16 +3%

Adjusted EPS €1.27 (1%) €4.45 +2%

BASF Q3 2014 Analyst Conference Call October 24, 2014

Sales analysis: BASF without Oil & Gas Chemical business: no volume growth, stable prices

7%

-4%

0% 0% 0% 1%

-1%

0%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Factors influencing sales in Q3 2014 vs. Q3 2013

Price Currency Portfolio Volume

BASF Group: Sales: +3%

BASF Group w/o Oil & Gas: Sales: 0%

BASF Q3 2014 Analyst Conference Call October 24, 2014 4


Recent transaction with Statoil

Acquisition of participations in oil & gas fields in Norway

Purchase price amounts to US$1.25 billion

Increase of production to ~60,000 boepd in Norway

Additional reserves and resources of ~170 million boe

Restructuring of Performance Products

Strengthening of R&D platforms

Important corporate developments

5

BASF to sell textile chemicals business to Archroma

Paper Chemicals division to be dissolved, product lines moved to other divisions

Strategic options for parts of kaolin business in evaluation

Total earnings improvement of ~€500 million by 2017

Future set up of global research platforms:

- Process Research & Chemical Engineering, led out of Europe

- Bioscience Research, led out of North America (from 2015)

- Advanced Materials & Systems Research, led out of Asia (from 2016)

http://bilddb.basf-ag.de/webreader/main/get_content.jsp?obj_id=090080e880404e9e&format=jpeg_lres

Chemicals Earnings growth despite flat volumes

Intermediates 701

0%

Monomers 1,587

(1%)

Petrochemicals 1,913

(1%)

€4,201 (1%)

Q3’14 segment sales (million €) vs. Q3’13


Q3’14 vs. Q3’13 0% (1%) 0% 0%

6

EBIT before special items (million €)

527 510601 570 616

0

200

400

600

800

Q3 Q4 Q1 Q2 Q3

2014 2013


Performance Products Sales and earnings stability during restructuring

Performance Chemicals

847

+3%

Care Chemicals 1,203

0% €3,919 (1%)

Paper Chemicals 344

(6%)


Nutrition & Health 522

(3%) Dispersions & Pigments

1,003

0%



Q3’14 vs. Q3’13 0% 0% 0% (1%)

376

216

427 435376

0

200

400

600

Q3 Q4 Q1 Q2 Q3

7

2014 2013


Functional Materials & Solutions Continued robust demand from automotive

Catalysts 1,572

+7%

Construction Chemicals

565

(2%)

Coatings

736

+1%

€4,527+2%



Q3’14 vs. Q3’13 1% 2% 0% (1%)

Performance Materials 1,654

(1%)

300238

311356

310

0

200

400

Q3 Q4 Q1 Q2 Q3

8


2014 2013


Agricultural Solutions Strong earnings decline in seasonally slow quarter




Q3’14 vs. Q3’13 (4%) 2% 0% (1%)

0

100

200

Q3 Q30

300

600

900

1,200

Q3 Q3

1,018 (3%)

43

(75%)

172 1,054


2014 2013 2014 2013

62

451*

194

265

0

100

200

300

400

500

Q3/2013 Net Income Q3/2014 Net Income

Oil & Gas Considerably higher sales and earnings

Exploration & Production

611

(19%)

Natural Gas Trading 3,059

+29% €3,670 +17%

Q3’14 segment sales (million €) vs. Q3’13 EBIT bSI/Net income (million €)

Natural Gas Trading

Exploration & Production

Net income

Sales development Period Volumes Prices/Currencies Portfolio

Q3’14 vs. Q3’13 43% (26%) 0%

422

360

310

504

10


* Incl. one-time disposal gain of 164 million euros from the divestment of a 15% stake in Edvard Grieg field

Review of “Other”

Million € Q3’14 Q3’13 Sales 977 947 EBIT before special items (7) (105) Thereof Corporate research Group corporate costs Currency result, hedges and other valuation effects Other business

(96) (53) 100

23

(90) (57) (74)

59

Special items (20) (24)

EBIT (27) (129)


Cash Flow Solid cash flow in Q1-Q3 2014

Million € Q1-Q3’14 Q1-Q3’13 Cash provided by operating activities 4,765 5,982 Thereof Changes in net working capital Miscellaneous items

(739) (425)

374 (327)

Cash provided by investing activities (3,625) (4,629) thereof Payments related to tangible / intangible assets (3,426) (3,038) Acquisitions / divestitures 355 (1,093) Cash used in financing activities (995) (1,300) thereof Changes in financial liabilities Dividends

1,661 (2,656)

1,304 (2,604)


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.

Despite the challenging environment, we strive for a slight increase in EBIT before special items.

Outlook 2014

GDP: 2.3% (previous: 2.5%)

Industrial production: 3.4% (previous: 3.7%)

Chemical production: 4.0% (previous: 4.4%)

US$ / Euro: 1.35 (unchanged)

Oil price (US$ / bbl): 105 (previous: 110)

Assumptions 2014

Outlook 2014


Update on key assumptions of the “We create chemistry” strategy

Growth 2010 – 2015 (today‘s view)

Global GDP 2.6% p.a.

Chemical production (excl. pharma)

4.0% p.a.

Industrial production 3.4% p.a.

Growth 2010 – 2015 (‘We create chemistry’ *)

3.4% p.a.

4.9% p.a.

4.6% p.a.

* Rebased figures, new base year 2010

BASF Q3 2014 Analyst Conference Call October 24, 2014 14


EBITDA / EBITDA impact (billion €)

Lower market growth and lower margins adversely impact 2015 EBITDA expectation

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basf interim report 3rd quarter 2014

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