Moving BASF to the next level – The importance of innovation

1. Moving BASF to the next level – The importance of innovation Dr. Herbert Fisch Vice President BASF Hungária Kft. & Southeast Europe Budapest, 18th May 2012.

2. BASF – The Chemical CompanyWe create chemistry for a sustainable future • Our chemicals are used in almost all industries • We combine economic success, social responsibility and environmental protection. • Sales 2011: €73,497 million • EBIT 2011: €8,586 million • Employees (as of December 31, 2011): 111,141 • In 2011, BASF filed for around 1,050 new patents worldwide • 6 Verbund sites and around 370 production sites Platzhalter für Bild

3. Structure of BASF’s segments Chemicals Plastics Performance Products Functional Solutions AgriculturalSolutions Oil & Gas • Inorganics • Petrochemicals • Intermediates • PerformancePolymers • Polyurethanes • Dispersions & Pigments • Care Chemicals • Nutrition & Health • Paper Chemicals • PerformanceChemicals • Catalysts • ConstructionChemicals • Coatings • Crop Protection • Exploration & Production • Natural Gas Trading 3

4. 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

5. BASF’s Strategy 2025 „We create chemistry for a sustainable Future”Ambitious targets for the future Growth Profitability • Grow at least 2 percentage points above chemical production • Earn a premium on cost of capital of at least €2.5 billionper year on average • Sales of €115 billion in 2020 • Thereof sales of €30 billion with innovations launched within last 10 years • Double EBITDA comparedwith 2010 to €23 billion in 2020 Targets for environment, health & safety as well as best teamcomplement financial targets 5

6. Stronger integration of sustainabilityinto our business decisions Creating value Enable our customers to develop more sustainable solutions Connect – in our team and with society Deliver excellence in our operations Reducing risk

7. Our solutions for a sustainable futureMegatrends drive growth & technology fields Chemistry as enabler Resources, Environment & Climate Food & Nutrition Quality of life Customer industries Transportation Construction Consumer Goods Health & Nutrition Electronics Agriculture Energy & Resources Batteries Heat management Enzymes Medical Organic Electronics Plant biotechnology Energy management Leightweight composites Functional crop care Rare earth metals recycling Growth fields* Heat management Wind energy Water solutions Raw material change Technology fields Materials, systems & nanotechnology White biotechnology *including growth fields still under evaluation

8. From Chemicals to ChemistryShift of Innovation Focus • Chemistry as key enabler for functionalized materials & solutions • Deep understanding of customer value chains required 1960 1970 1980 1990 2000 2010 2020 New molecules Improved applications Functionalized materials & solutions Batteries, membranes ... From chemicals to chemistry

9. z InnovationMeeting challenges, developing new business areas Expenditures for R&D circa €1.61 billion world leader in chemical industry Since 2005 increase of R&D expenditures by 50% Around 2,800 projects Strongest innovation power in the chemical industry (No.1 in the Patent Asset IndexTM) Sales target 2020: circa €30 billion fromproduct innovations Research for the future: with our innovative products and processes, we provide sustainable solutions for global challenges. Corporate Research Chemicals Plastics Performance Products circa €1.61 billion Functional Solutions 1% Agricultural Solutions Oil & Gas

10. z Growth and Technology Fields • Technology fields • Raw Material Change • Synthesis of formic acid and acrylates • Materials, Systems & Nanotechnology • Innovative insulation materials for buildings and • cars to reduce energy consumption • White Biotechnology • Vitamin B2: Highly efficient biocatalytical production • Growth fields • Water Solutions • Help our customers to implement solutions for water recycling and reuse, water savings and drinking water treatment • Batteries for Mobility • Work on concepts for next generations of batteries(lithium-sulfur, lithium-air) • Organic Electronics • Material systems for OLEDs (focus on blue phosphorescent emitting materials) 1%

11. BASF Interdisciplinary Know-How VerbundExamples from our cooperation network

12. Connect – in our team and with society • CHEMGENERATION: BASF Hungária launched an educational website celebrating the International Year of Chemistryjointly with the Hungarian Chemical Society (MKE) and MOL, Richter, sanofi-aventis/Chinoin, TEVA Gyógyszergyár, TVK • Update of CHEMGENERATION: FUTURE CITY game launched focusing on environmentally conscious thinking • BASF will initiate a TEENS’ LAB roadshow with eight science universities and colleges in 2012 • BASF opened its KIDS’ LAB in cooperation with the Museum of Transports

14. Our Values: CSRBASF Hungária Kft. CSR • BASF acts responsibly in environment protection drastically reducing CO2 emission and investing heavily in green technologies • BASF is active in Corporate Responsibility and charity • In 2007 & 2008 BASF transferred 14 million HUF supporting the National Ambulance Service and the Association of Hungarian Diabetic Patients • www.chemgeneration.com: BASF Hungária Kft. launched an educational website celebrating the International Year of Chemistry with the Hungarian Chemists’ Assotiation • BASF opened its Kids’Lab in cooperation with the Museum of Transports

15. Three pillars of our new innovation set-up to make R&D more effective and efficient

16. BASF Hungária Kft. Agro Division Industry Division Construction Chemicals Division BASF Poliuretán Hungária Kft. Polyurethane Production BASF business unitsin Hungary

17. BASF’s „We create chemistry”Strategyputs focus on sustainable innovations • Growth drivers: sustainability, innovation and investments • Expansion of Functionalized Materials & Solutions • Additional value from industry groups and cross-disciplinary innovation • Technology and operational excellence in all businesses and regions • Internationalization of organization according to market needs

18. Our purpose We create chemistry for a sustainable future Platzhalter für Bild

19. We add value as one company We innovate to make our customers more successful We drive sustainable solutions We form the best team Our strategic principles Platzhalter für Bild

20. BASF’s brand value BASF Hungária does not sell simple products: it’s core value is supporting its customers & partners by system-integrated solutions, BASF Hungária offers a problem-solution focused attitude Our core value is our unrivalled know-how of our colleagues Our Values: BrandBASF Hungária Kft.

21. 2011 sales* and EBIT in the regions million € (Change to previous year in %) Europe +17% Sales 41,036 56% +9% EBIT 5,668 North America SalesBASF Group73,497 +11% Sales 14,727 +19% EBIT 1,314 20% Asia Pacific 18% 6% South America, Africa, Middle East +14% Sales 13,316 +15% -11% Sales 4,418 EBIT 1,133 +166% EBIT 471 *by location of company

22. Organization of the BASF Group • Six business segments contain 15 divisions which bear the operational responsibility and manage 70 global and regional business units • These in turn develop strategies for 76 strategic business units • Regional divisions contribute to the local development of BASF’s business, help to exploit market potential and are responsible for optimizing the infrastructure for our businesses • Three central divisions, five corporate departments and ten Competence Centers provide Group-wide services such as finance, investor relations, communications, human resources, research, engineering and site management

23. BASF’s segment – Oil & Gas As the largest German producer of oil and gas, we focus our exploration and production on oil- and gas-rich regions in Europe, North Africa, South America, Russia and the Caspian Sea region. Together with our Russian partner Gazprom, we are active in the transport, storage and trading of natural gas in Europe. Oil & Gas • Exploration & Production • Natural Gas Trading

24. BASF’s segment – Chemicals In the Chemicals segment, we supply products to customers in the hemical, electronics, construction, textile, automotive, pharmaceutical and agricultural industries as well as any others. We also ensure that other BASF segments are supplied with chemicals for producing downstream products. Our portfolio ranges from basic chemicals, glues and electronic chemicals for the semiconductor and solar cell industries, to solvents and plasticizers, as well as starting materials for detergents, plastics, textile fibers, paints and coatings, and pharmaceuticals. Chemicals • Inorganics • Petrochemicals • Intermediates

25. BASF’s segment – Agricultural Solutions Our crop protection products guard against fungal diseases, insects and weeds and they increase quality and secure crop yields. Our research in plant biotechnology concentrates on plants for greater efficiency in agriculture, healthier nutrition and for use as renewable raw materials. Research and development expenses, sales, earnings and all other data of BASF Plant Science are not included in the Agricultural Solutions segment; they are reported in Other. AgriculturalSolutions • Crop Protection

26. BASF’s segment – Functional Solutions In the Functional Solutions segment, we bundle system solutions and innovative products for specific sectors and customers, in particular for the automotive, chemical and construction industries. Our portfolio comprises automotive and industrial catalysts, automotive and industrial coatings and concrete admixtures as well as construction systems such as tile adhesives and architectural coatings. Functional Solutions • Catalysts • ConstructionChemicals • Coatings

27. BASF’s segment – Performance Products Performance Products lend stability and color to countless everyday items and help to improve their application profile. Our product portfolio includes vitamins and food additives as well as ingredients for pharmaceuticals and for hygiene, home and personal care items. Other Performance Products improve processes in the paper industry, oil and gas production, mining and water treatment. They can also enhance the efficiency of fuels and lubricants, the effectiveness of adhesives and coatings, and the stability of plastics. Performance Products • Dispersions & Pigments • Care Chemicals • Nutrition & Health • Paper Chemicals • PerformanceChemicals

28. BASF’s segment – Plastics The Plastics segment includes a broad range of products, system solutions and services. We offer a number of engineering plastics for the automotive and electrical industries as well as for use in household appliances and sports and leisure products. Our styrenic foams are used as insulating materials in the construction industry and in packaging. Our polyurethanes are extremely versatile: As soft foams, for example, they improve car seats and mattresses, and as rigid foams they increase the energy efficiency of refrigerators. Plastics • PerformancePolymers • Polyurethanes

29. InnovationGlobal Know-how Verbund Thanks to our close cooperation with numerous partners from science and business worldwide, we have created an international and interdisciplinary Know-how Verbund. Science Relations and Innovation Management Science Relations and Innovation Management • Approx. 10,100 employeesin research and development worldwide • Research Verbund with about 1,950 cooperations Universities Research institutions Process Research &Chem. Engineering Biological & Effect Systems Research Advanced Materials & Systems Research BASFResearchVerbund PlantScience High-tech joint ventures Partners in industry BASF Future Business

30. Our solutions for a sustainable futureInnovation process to identify growth fields

31. BASF has the strongest patent portfolio in the chemical industry