Towards Profitable GrowthAGM Presentation by

Raman Ramachandran, CMD, BASF India Ltd.

1

Cautionary noteForward looking statements

� Only matters in the public domain can be subject matter of discussion in

this meeting

� As a matter of policy, we do not provide any prognosis about the future

business situation

� We do not comment or give guidance on future results or business outlook

2

Safety first, safety always

Internal safety audits- Nellore &

Mangalore, Ankleshwar, DahejICC audit awards RC logo

till 2020

Source: BASF

ICC Aditya Birla award - Best

Compliant Company - DISTRIBUTION

Crop Protection’s Suraksha Hamesha

campaign- finalist for Safety Champions Team

award (APAC)3

Source: Industrial Green

Source: BASF Source: BASF

Two heroes saved three lives -

Vasant Patil and Jaywant Thakur

Source: BASF

A year of political and economic ambiguity

4

Low consumer price -

inflation ratio

7th pay commission

rolled out

Normal monsoons Rupee Strengthened

50

60

70

80

INR vs USD vs Euro

USD EURO

Source: Zee Business Source: RBISource: Skymet Source: ET.com

Source: MarcotrendsSource: LittleStepsSource: LinkedIn

Brexit and US Elections – Rising trend of Protectionism Crude Oil pricing –

Mostly stable within a band

7.67.6

8.2 6.87.3

6.7

8.7

5.6

2015-16 2016-17

India: Short term impact due to policy

changes and demonetization

Manufacturing sector declined; Average capacity utilization @72%

Demonetization: Negative impact

5

Q1 Q1Q2 Q3 Q4 Q2 Q3 Q4

GDP Growth - Gross value added (% y-o-y)Source: CMIE

8.2

10.79.3

7.7

13.2

8.2

12.7

5.3

2015-16 2016-17

Source: CMIE

Manufacturing growth (%)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Source: BASF Source: Companies India Source: Better India

Two wheeler industry FMCG Construction Industry

Demand varied in our focus industries

Agriculture

� 4.8% growth with normal monsoon

� Leading crop protection companies reporting

decline in current financial year

Automobile

� Grew @ 5.4% FY 2016-17. Domestic sales >2

Mio units. Growth continues in current year

(SIAM)

� Maruti, Hyundai, Renault, etc. launched new

models

6

Source: BASF Source: BASF

Demand varied in our focus industries

FMCG

� Demonetization severely impacted FMCG and

Leather businesses between Nov-16 to Feb-

17

� Volatility in feedstock prices impacted the

chemical industry in the first half of this year

Construction

� Sector grew marginally @ 3.1%; Liquidity was

a major concern

� RERA Act and demonetization continues to

have negative impact

� Influx of competitors in Construction

Chemicals market

7

Source: BASF Source: IndianMirror

Chemicals

� Customer industries: paints & coatings,

pharma, agro. chem., polyurethane foam

� Maintained key supplier position

� Leveraged market supply demand

dynamics for pricing opportunities

8

Performance Products

� Customer Industries: paints & coatings, home

& personal care, fuel & lubes, animal & human

nutrition, pharma & plastic additives

� Leveraged Dahej to grow in the strategic

relevant markets to grow by 9%

Sales: 232 Cr.

6%

Source: BASF Source: BASF

*

* 6% is largely agency business and represents the commission for BIL from Chemicals

Sales: 2262 Cr.

41%

Segment Performance

9

Functional Materials & Solutions

� Developed Customer specific solutions

� Improved business with industry leaders

(MSIL)

� Grew by 8% with volume growth across

businesses units

� Increased utilization of our sites in India

Segment Performance

Source: BASF Source: BASF

Agricultural Solutions

� Enhanced vitality index with new products

� Diversified business beyond herbicides in

Soybeans and to new crops, corn and

specialty crops

� Grew by 8% on near normal monsoons

Sales: 2207 Cr.

40%

Sales: 726 Cr.

13%

Make in India: making the best of our

manufacturing assets

Kharagpur, West Bengal

� Sixth construction chemicals plant; operational

from May16’

� Well-equipped concrete lab delivers tailor-

made recipes for entire range of admixtures

and accelerators in Eastern India as well as

Bhutan

Innovation Campus, Mumbai

� BASF group’s biggest investment in South

Asia - Inaugurated on March 3, 2017

� The campus will expand our existing R&D

activities in India

� BASF India’s Application labs for Dispersion,

Pharma, Consumer Care and performance

chemicals moved to new campus

10

Source: BASF Source: BASF

Innovation: Crop Diversification with new

launches in Agricultural Solutions

11

� Launched new products for rice crop protection: Basagran, Adexar, Seltima

� New products driving growth in this financial year

® Registered trademark of BASF Group

™ Trademark of BASF Group

Basagran Seltima®Adexar ®

Rice

Opera

Wheat

Acrisio, Merivon

Grapes and Apples

TynzerTM

CornSource: BASF

12

Innovation: customized solutions for

Indian market received well

® Registered trademark of BASF Group

™ Trademark of BASF Group

MasterSeal and MasterWeld:

Sealants & Adhesive range

Stakeholders checking MasterEase,

MasterSeal and Master Seal ® Traffic

Systems in Mumbai

Low VOC paint based

Acronal® ECO- EDA

Elastomeric paint based

on Acronal 7079- EDAElastoskin PU foam comfort with

customized spray skin cover- PM

Toiler cleaner for FMCG

brand with EM MSA Solution

Source: BASF

Business performance: improved

operating results

13

PBT before exceptional items

Above figures are as per Ind AS

April 2016 - March 2017

-250

-200

-150

-100

-50

0

In crores

FY 15-16 FY 16-17

-202

-29

Sales growth of 7% Y-o-Y; Operating results improved significantly

Revenue

0

1000

2000

3000

4000

5000

6000

FY 15-16 FY 16-17

5,5265,157

In Crores

14

Business performance: Q1 results

impacted by GST cost & RM price volatility

+9%

April 2017 - June 2017

1,400

1,450

1,500

1,550

1,600

1,650

1,700

INR Crore

Sales Revenue

Q1 FY 2015-16 Q1 FY 2016-17

1513

1649

0

1

2

3

4

5

6

7

8

9

INR Crore.

PBT before exceptional items

Q1 FY 2015-16 Q1 FY 2016-17

8

1

Above figures are as per Ind AS

Beyond the numbers

16

Customers and industry recognized our

quality, service and efforts

BASF India Limited, Annual General Meeting 2016-17

CCE: Gold Quality

Consistency Award

from Bajaj Auto

Best Supplier in

Quality

Tata Motors

EC- Best Supplier

Award from Honda

Motorcycles &

Scooters

2nd rank (among BSE

500 companies)

for listing mandates

Working Mother and

AVTAR Best

Companies for

Women in India

Source: BASF

Source: BASF

Source: BASF

Source: BASF

Source: BASF

Successful and engaged employees lead

us to organizational success

BASF India Limited, Annual General Meeting 2016-17

CM: 1st in Inorganics’ Trader

Transactional Supplier Hunting

competition APAC

EV Extra Mile Award

Customer Service Award –

Finalist

Sales Excellence Award –

Finalist

17

Workshop reinforcing

Critical Leadership skills

Ankleshwar employees in

visual technical

management workshop

Source: BASF Source: BASF Source: BASF

Source: BASFSource: BASFSource: BASF

Supporting communities and social

business; fostering diversity

Sanitation classes for children in Thane Veerapruram water plant inauguration

BASF India Limited, Annual General Meeting 2016-17

AP seed funding for small holders- Mahila Bachat Gat

18

Source: BASF

Source: BASF Source: BASF

Summing Up

� Grow above market

� Improve efficiency

� Optimize working capital

� Maximize capacity utilization

� Innovate to meet market demands

19

BASF India Limited, Annual General Meeting 2016-17

Source: BASF

Thank you for your trust

and continued support!

Thank you for your trust and

continued support!