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Introduction to BASF – The Chemical Company

We create chemistry

BASF – The Chemical CompanyWe create chemistry for a sustainable future

BASF – Badische Anilin und Soda Fabrik

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

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Platzhalter für Bild

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Our strategic framework

PURPOSE

STRATEGICPRINCIPLES

VALUES

We create chemistry for a sustainable future

Creative Open Responsible Entrepreneurial

We add value as one company.

We innovate to make our customers more successful.

We drive sustainable solutions.

We form the best team.

Strong tradition

1865 1900 1925 1950 1975 2000 2005 2010

THE AGE OF DYES

FOUNDING OF BASF

THE AGE OF FERTILIZERS

NEW HIGH-PRESSURE SYNTHESES

NEW BEGINNING AND PLASTICS AGE

BECOMING A TRANSNATIONAL COMPANY

2011

WITH SUSTAINABILITYINTO THE NEW MILLENIUM

COGNISACQUISITION

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BASF worldwideSites

Regional centers Selected production sites Verbund sites Most important research sites

Florham Park

Antwerp

FreeportGeismar

Hong Kong

Singapur

Nanjing

Kuantan

Ludwigshafen

Structure of BASF’s segments

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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

BASF as the world’s most admired company

BASF in Indonesia

BASF in Indonesia

Established : 1976, production started 1977

Employees : + 610

BASF sales in

Indonesia 2011 : Approx € 450 mio

Head office : Plaza GRI, 11th Floor

Jl. H.R. Rasuna Said Blok X2/1

Jakarta 12950

Cengkareng Site Merak Site

CikarangSite Cimanggis Site

Head Office or Plant Rep Office Field Rep. Location

BASF throughout Indonesia

1 Head Office, 4 Plants, 2 Representative Offices,and Field Representative Locations throughout Indonesia

1 Head Office, 4 Plants, 2 Representative Offices,and Field Representative Locations throughout Indonesia

PT BASF Indonesia Certification

ISO 9001: 1994 Certification

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ISO 9001: 2001 Certification

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ISO 14000 Certification

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We innovate to make our customersmore successful

Decorative Coating Seminar, 22 June 2010

National Mass Spray, 8 Aug 2008 Indonesia Cosmetics Ingredients, 18 – 20 May 2010

Seminar on Fortification of Cooking Oil with Vit. A, 21 Apr 2009

We drive sustainable solutions

Governor of DKI Jakarta awarded PT BASF Indonesia a Good Predicate Company in environmental management

BASF won Golden Award during the Responsible Care® Award 2009 held by

Indonesia National Committee for Responsible Care®.

Domestic waste segregation and transportation to waste recycling facility.

Food Ingredients Asia, 29 Sep – 1 Oct 2010 Indonesia International Auto Parts, Accessories and Equip Exhibition 2011, 23 – 26 March 2011

Our Corporate Social Responsibility Activities

Inauguration of BASF Tsunami Projects in Banda Aceh and Nias, July 2008

BASF Kids’ Lab - introducing chemistry through hands on experiment for children.

Handover ceremony of School Inauguration in Nan Sabaris, West Sumatera

Annual scholarships & “Go to School with BASF” program for students around

Cengkareng Site

Donations to Japan Tsunami Victim via Red Cross Indonesia

PT BASF Indonesia Merak Site

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BASF IndonesiaBASF Indonesia

Merak Site at a GlanceMerak Site at a Glance

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Merak site

PT BASF Indonesia, Merak Site

Styrene Supplier

Next BD Supplier

IK Customer

PD Customer

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Chemical Complex Merak,Bojonegara Area

Serang

Merak

Cilegon

Bojonegara

To JKT

Styron (SB latex, Polystyrene)

Toll road

Local road

Railw

ay

Anyer

Suralaya power station

New harbor

Amoco (PTA)

Chandra Asli( Em,Pm,PE,PP,EB)Tripolyta ( PP )Arco chem ( PU )

Dover ( Formalin) Statomer (PVC)

Mitsubishi Chemical ( PTA,PE )

Krakatau Steel

Cabot (Carbon blk )

UIC ( Alkyl benzene)

Satomo (VCM, PVC)Ferry port

Sulfindo (NaOH,HCL,Cl2)

Chandra Asri,SMI (EB,SM)Polychem (PS)

GT Petrochemical (SBR,PB)Cabot (Carbon Black)

Arbe (ABS,Exp PS,SAN)

Gajah Tunggal (SBR)

PT BASF Indonesia (Empty Land)

PT BASF Indonesia

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Merak Site History

Ciba BASF

Established in 1993 between Rhone Poulenc SA (60%) & PT AKR (40%) Rhodia became 100% Shareholders as of Aug. 14, 1998 Raisio Chemical became 100% shareholders as of Aug.1, 2002 Ciba Specialty Chemicals became 100% shareholder as of June 2, 2004 Legal integration to BASF, 1 April 2010

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PT BASF IndonesiaMerak Site Organization Chart

Total EP Headcounts : 52Total Leased Personnel: 18

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Process Flow DiagramTwo Lines : Capacity 2012 = 52 ktpa

TDDM5 m3

Butadiene

2500 m3

200 m3

Styrene

Acrylic acid30 m3

R-1Ｃａｔａｌｙｓｔ S-1

WaterOther Chemical

Steam

Cooling System

Reactor 1Volume: 32 MT

Ｃａｔａｌｙｓｔ

WaterAdditives

WaterAdditives

DT-1

Steam air

Day Tank 1Volume: 40 MT

WaterSweko: 100 microns

Storage TanksVolume: 2600 T11 tanks cap: 100T3 tanks cap: 200 T3 tanks cap : 300 T

Stripper 1Volume: 34 MT

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Merak Site at a Glance

Plant Capacity: 52 KT/aProduct: XSB Latex Styronal gradesProduct Appication: Paper Coating

Main customers: APP

S134 m3

R132 m3

DT140 m3

S234 m3

R232 m3

DT440 m3

Butadiene2500 m3

Styrene200 m3

Acrylic Acid

30 m3

Caustic soda 48%

25 m3

RAW MATERIAL STORAGE TANKS

10 Products for Paper

-TDDM in 5 m3 tank, coming in drum-Other raw materials (Initiators, Emulsifiers,, Malto, etc.) as bags or drums/container by truckTotal capacity warehouse RM:320 MTTotal capacity warehouse FG:80MT

LATEX200 m3LATEX

200 m3

LATEX100 m3

LATEX100 m3LAEX

100 m3

11 x 100 m3

LATEX200 m3

3 x 300 m3

3 x 200 m3

LATEX300 m3LATEX

300 m3LATEX300 m3

Latex -1

Latex-2

LATEX100 m3LATEX

100 m3

PRODUCTION PLANT STORAGE TANK

20 m3

20 m3

12 m3

LATEX100 m3

LATEX100 m3LATEX

100 m3LATEX100 m3LATEX

100 m3LATEX100 m3

TOTAL STORAGE CAPACITY = 2600 m3

EP Merak Site Supply Chain

Merak Output(2009-2015)

Capacity expansion 2010 - 11 : improvement and repair of plant equipment : increased OEE = + 15% capacity improvement

Capacity expansion 2013 : PSA/SA (including premix = Cycle time improvement) +20%

& SIS Heat Balance + 8% capacity improvement

Option potential to swing in ED , XSB (5 ktpa) to Merak to reduce BD risk in Jakarta

Demand = Total Indonesia and ASEAN : Currently supplied by Merak and Cengkareng

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Where is BASF?

Where is BASF?

• In the duck: we have Hexamol DINCH that makes PVC toys safe for your baby.

• In the baby: food with Vitamin A & DHA helps your children play, learn and develop healthily and inteligently.

Where is BASF?

• In the apple tree: our Regalis is used to improve

quality and yield of apple trees.

• In the father & child: daily intake of Vitamin C protects

your family from cold and bring happines to life.

Where is BASF?

• In the plastic bag: plastic bags made with Ecoflex is biodegradable, making them more friendly to the environment.

• On the dress: Sokalan is a dye transfer inhibitor in detergent that stops color clothing from staining other laundries during wash, making white whitier and color brighter.

Where is BASF?

• On the car surface: our Liquid Metal Bascoat gives your car a silk

texture and attractive liquid silver metalic appearance.

• On the car surface: our Scratch Resistance Coatings can help

make your car stay shiny for much longer.

Where is BASF?

• On the hair: the Luviflex silk in the hairsprays makes your hair soft and silky smooth.

• On the face: the color cosmetics and personal care products with our RefleckTM Multidimensions provide a shimmering and sparkling effects.

Where is BASF?

• In the paint: Acronal ECO is low odor and can greatly improve indoor air quality during and after

painting.

• In the wall: Micronal PCM ensures intelligent temperature management for perfect room

condition.

At BASFwe don’t just make chemicals,

we create chemistry