We create chemistry for a sustainable futureStefan Koch, Investor RelationsDB European Corporate Days Scandinavia, StockholmMarch 21, 2018
March 20182 | BASF Capital Market Story
Cautionary note regarding forward-looking statements
This presentation contains forward-looking statements. These statements are based on currentestimates and projections of the Board of Executive Directors and currently available information.Forward-looking statements are not guarantees of the future developments and results outlined therein.These are dependent on a number of factors; they involve various risks and uncertainties; and they arebased on assumptions that may not prove to be accurate. Such risk factors include those discussed inthe Opportunities and Risks Report from pages 111 to 118 of the BASF Report 2017. BASF does notassume any obligation to update the forward-looking statements contained in this presentation aboveand beyond the legal requirements.
March 20183 | BASF Capital Market Story
Agenda
At a glance1
Strategic levers2
Segments3
March 20184 | BASF Capital Market Story
BASF shares – an attractive investment
Growth above chemical industry average– driven by innovative and sustainable products and solutions
Unique Verbund concept – competitive advantage based on integrated sites, operational excellence and best-in-class technologies
Broad and resilient portfolio – with global market access and strong customer relationships
Earnings growth and strong cash flow generation – based on operational and financial strength
Long-term value creation with progressive dividend policy – grow or at least maintain dividend at the previous year’s level
March 20185 | BASF Capital Market Story
Chemicals – a growth industryGlobal annual growth rate of ~3.4%*
…more food needed by 2050
…more primary energy consumption by 2050
…of the world population will live in cities by 2050
Agriculture Health & Nutrition
Energy & Resources
TransportationConstruction & Housing
Consumer Goods
…people by 2050
Electrical & Electronics
Chemistry as enabler to meet current and future needs
70% 50%~10 bn 30%
* Forecast average annual real change 2018–2020; BASF Report 2017, p. 121
March 20186 | BASF Capital Market Story
Broad and resilient portfolio2017: Sales of €64.5 billion; EBITDA of €12.7 billion
* Not depicted here: ‘Other’ 4% of BASF Group sales and EBITDA of €(679) million
Percentage of sales 2017*
Dispersions & Pigments Care Chemicals Nutrition & Health Performance Chemicals
Functional Materials & Solutions
Catalysts Construction Chemicals Coatings Performance Materials
EBITDA €5.4 billion Petrochemicals Monomers Intermediates
25%
Performance Products
25%
Oil & Gas
Exploration & Production; Natural Gas Transport
5%
Agricultural Solutions
Crop Protection
9%
Chemicals
EBITDA €1.3 billionEBITDA €2.4 billion EBITDA €2.1 billionEBITDA €2.3 billion
March 20187 | BASF Capital Market Story
Global market access through regional presence
Kuantan
Hong KongNanjing
Freeport
Florham Park
Geismar
LudwigshafenAntwerp
São Paulo
Regional centersSelected sitesVerbund sitesSelected research and development sites
Asia Pacific
South America, Africa, Middle East
North AmericaSales €15,357 millionEBIT €1,236 millionEmployees 18,295
Sales €14,343 millionEBIT €2,209 millionEmployees 18,256
Sales €5,561 millionEBIT €335 millionEmployees 7,286
2017: Sales by location of customer; EBIT by location of company
EuropeSales €29,214 millionEBIT €4,742 millionEmployees 71,653
March 20188 | BASF Capital Market Story
Verbund – unique competitive advantageActively managed in line with market requirements
Annual cost savings of more than €1 billion through integrated production Verbund concept supports sustainability, reduces waste and avoids CO2 emissions of 6 million tons p.a.
Energy savings >€300 million p.a.
Logistics savings >€600 million p.a.
Infrastructure savings>€100 million p.a.
People, Customers, Technology, Production
March 20189 | BASF Capital Market Story
BASF with considerable sales and earnings increasein the fourth quarter and the full year 2017Financial figures Q4 2017 Change Q4 2016 FY 2017 Change FY 2016
billion € % billion € %Sales 16.1 8 64.5 12EBITDA before special items 2.9 27 12.5 21EBITDA 3.0 20 12.7 21EBIT before special items 1.9 58 8.3 32EBIT 1.9 57 8.5 36Net income 1.5 123 6.1 50Operating cash flow 1.2 (37) 8.8 14Reported EPS (€) 1.68 124 6.62 50Adjusted EPS (€) 1.29 63 6.44 33
Sales development Volumes Prices Portfolio CurrenciesQ4 2017 vs. Q4 2016 4% 9% 0% (5)%FY 2017 vs. FY 2016 4% 8% 1% (1)%
March 201810 | BASF Capital Market Story
3.74.7 4.6
7.0 7.28.4 8.9
7.76.5
9.9
11.2
10.0 10.411.0 10.6 10.5
12.7
0
2
4
6
8
10
12
14
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Stepwise increase of earnings level
EBIT EBITDA Avg. EBITDA level in depicted years
EBIT and EBITDA*billion €, 2001–2017 CAGR
EBITDA
8%CAGREBIT17%
12.7
* 2010, 2011 indicative, adjusted for IFRS 10/11; 2001–2009 as reported, without non-compensable foreign income taxes on oil production
0.7
2.2 2.2
4.5 4.85.5
6.0
4.6
2.8
6.7
8.06.7 7.2
7.6
6.2 6.3
8.5
March 201811 | BASF Capital Market Story
2.3 2.3
4.9 4.65.3
5.9 5.85.0
5.76.5
7.16.6
8.1
7.0
9.4
7.7
8.8
0
2
4
6
8
10
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Free cash flowOperating cash flow
-0.5 -0.1
2.8 2.63.3 3.5 3.2
2.53.2
3.9 3.7
2.63.2
1.7
3.6 3.6
4.8
Strong cash flow development
Operating cash flow and free cash flowbillion €, 2001–2017
March 201812 | BASF Capital Market Story
Attractive dividend
* Dividend yield based on share price at year-end
0.65 0.70 0.700.85
1.00
1.50
1.95 1.951.70
2.20
2.50 2.60 2.70 2.80 2.90
0
1
2
3
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Yield* 3.1% 3.9% 3.1% 3.2% 3.1% 4.1% 3.8% 7.0% 3.9% 3.7% 4.6% 3.7% 3.5% 4.0% 4.1% 3.4% 3.4%
3.00
Dividend per share€
Dividend policy We want to grow or at least maintain
our dividend at previous year’s level
Key facts Dividend proposal of €3.10
per share, an increase of 10 cents
Dividend yield of 3.4% in 2017
Proposal3.10
March 201813 | BASF Capital Market Story
Delivering consistent, long-term valueCurrent market capitalization: €79 billion*
Average annual performance with dividends reinvested
0 2 4 6 8 10 12 14
+6.3%
+7.3%
+2.3%
+11.8%
Last 10 years March 2008 – February 2018
0 2 4 6 8 10 12 14
Last 3 years March 2015 – February 2018
+3.9%
+1.1%
+2.9%
+6.7%
* As of February 28, 2018
Euro Stoxx 50
DAX 30
MSCI World Chemicals
BASF
March 201814 | BASF Capital Market Story
Sales growth – slightly faster than global chemical production
Deliver attractive returns – earn a significant premium on cost of capital
EBITDA growth – well above global chemical production
Remain a strong cash provider – continuously generate high levels of free cash flow
Progressive dividend policy – grow or at least maintain dividend at the previous year’s level
Financial targets for the coming years
March 201815 | BASF Capital Market Story
Innovations for a sustainable future
Investments in organic growth
M&A opportunities and portfolio pruning measures
Operational excellence and cost discipline
We aim to grow sales and earnings faster than global chemical productionin the coming years, driven by
Our priorities
March 201816 | BASF Capital Market Story
Outlook 2018 for BASF Group*
We anticipate slightly higher sales in 2018.
EBIT before special items is expected to be up slightly on the 2017 level.
EBIT is forecast to decline slightly in 2018.
We aim to once again earn a significant premium on our cost of capital in 2018. However, EBIT after cost of capital will decrease considerably.
* With respect to EBIT before special items, “slight” means a change of 1-10%, while “considerable” is used for changes of 11% and higher. “At prior-year level” indicates no change (+/-0%).This outlook takes into account the agreed transactions with Bayer and Solvay. The intended merger of our oil and gas activities with the business of DEA Deutsche Erdoel AG and itssubsidiaries is not taken into account in this outlook.
March 201817 | BASF Capital Market Story
Underlying assumptions for outlook 2018 Economic environment 2018 2017GDP growth +3.0% +3.1%
Growth in industrial production +3.2% +3.3%
Growth in chemical production* +3.4% +3.5%
Exchange rate US$1.20 per euro US$1.13 per euro
Oil price (Brent) US$65 per barrel US$54 per barrel
* Excluding pharma
Transactions Consideration inthe 2018 outlook
Expected closing Financial impact
Acquisition of Solvay’s global polyamide business included Q3 2018 No material effect on sales and earnings in 2018 expected
Acquisition of significant parts of Bayer’s seed and non-selective herbicide businesses included H1 2018
Likely to have a positive impact on sales and a negative impact on
earnings for the Agricultural Solutions segment and BASF Group in 2018
Merger of BASF’s and LetterOne’s oil and gas activities into Wintershall DEA not included H2 2018 Deconsolidation only after signing
of definitive transaction agreements
March 201818 | BASF Capital Market Story
Outlook 2018 by segment
EBIT before special items Forecast 2018* 2017million €
Chemicals Considerable decline 4,233
Performance Products Considerable increase 1,416
Functional Materials & Solutions Considerable increase 1,617
Agricultural Solutions Slight decline** 1,033
Oil & Gas Considerable increase 793
Other Slight increase (764)
BASF Group Slight increase 8,328
* With respect to EBIT before special items, “slight” means a change of 1-10%, while “considerable” is used for changes of 11% and higher. “At prior-year level” indicates no change (+/-0%).** Excluding the agreed transaction with Bayer, we expect a slight increase in EBIT before special items in the Agricultural Solutions segment.
March 201819 | BASF Capital Market Story
Agenda
At a glance1
Strategic levers2
Segments3
► Portfolio development► Investments► Innovation► Sustainability► Operational excellence
March 201820 | BASF Capital Market Story
Continuous global portfolio development to maintain a balanced portfolio
target(in % of sales*)~50% ~50%
Divestment of businesses,e.g., due to loss of differentiation
Divestment of businesses,
e.g., due to lower market attractiveness
Commoditization leads to restructuring
Growth fields
Innovation pipeline
Acquisitions
Specialties and solutions Differentiated commodities
Attractive markets Differentiation by process
technologies and integration
Attractive markets Differentiation by customer
proximity and innovations
* Excluding Oil & Gas sales
March 201821 | BASF Capital Market Story
Portfolio development towards more market-driven and innovative businesses
Strong Partnerships Gazprom PETRONAS Sinopec Total
Selected transactions 2010−today
BASFcore business
~€5.5 billion salesin emerging and innovation-driven businesses
Acquisitions Functional crop care Personal care & food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil & Gas Refinish coatings Surface treatment
Divestitures
~€21.0 billion salesin businesses with limited fit and differentiation potential
Styrenics Fertilizers Selected assets in Oil & Gas Natural gas trading & storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings Leather chemicals
March 201822 | BASF Capital Market Story
Clear acquisition criteria
We want to acquire businesses which …
provide a return on investment above the WACC
are EPS accretive by year three at the latest
We want to acquire businesses which …
generate profitable growth above the industry average
are innovation-driven
offer a special value proposition to customers
reduce earnings cyclicality
Acquisitioncriteria
Strategic acquisition criteria Financial acquisition criteria
March 201823 | BASF Capital Market Story
Complementary acquisitions to strengthen the portfolio of BASF Group
Solvayʼs integrated global polyamide business
Purchase price: ~€1.6 billion Sales 2016: ~€1.3 billion EBITDA 2016: ~€200 million Market CAGR: >3.5% Closing expected in Q3 2018
Significant parts of Bayerʼs seed and non-selective herbicide businesses
Purchase price: ~€5.9 billion Sales 2016: ~€1.3 billion EBITDA 2016: ~€385 million Sales CAGR: ~15% (2014–2016) Closing expected in the first half 2018
ChemetallSurface treatment business
Purchase price: ~US$3.1 billion Sales 2015: ~US$845 million EBITDA 2015: ~US$200 million Sales CAGR: ~7% (2007–2015) Closed in December 2016
March 201824 | BASF Capital Market Story
BASF signed agreement to acquire significant parts of Bayer’s seed and non-selective herbicide businesses
Fully enabled seed and trait businesses Attractive and sizeable seed portfolio for canola/oilseed
rape, soybean and cotton in the Americas and Europe
Excellent trait research for canola, soybean and cotton
LibertyLink® technology for herbicide tolerance and related trademarks
Complementary crop protection business Global glufosinate-ammonium-based non-selective herbicide
business
State-of-the-art production facilities in the U.S., Canada and Germany
March 201825 | BASF Capital Market Story * Application examples
Broader global scope Enhanced presence, especially in Asia and South America Stronger capabilities to serve global and regional
customers
Wider range of engineering plastics Technyl®, Ultramid®, Ultradur®, Ultraform®, Ultracom®
Broadening technical skills and innovation capabilities* Heat-resistant and high-voltage electrical and electronic parts Tailor-made solutions for components in automotive Mechanically strong and thermally stable consumer goods
Improved reliability of supply Backward integration into all key raw materials for polyamide 6.6 Fully integrated engineering plastics value chain
BASF to acquire Solvay’s global polyamide business
March 201826 | BASF Capital Market Story
* No later than 36 months after closing, this bond will be converted into new shares in Wintershall DEA, resulting in a higher shareholding ratio for BASF
BASF and LetterOne signed letter of intent to merge their oil and gas subsidiaries Wintershall and DEA
Combined business with pro-forma 2016 sales of €4.3 billion, EBITDA of €2.2 billion and net income of €326 million
Creation of one of the largest independent European exploration and production companies with significant growth potential, optimization of the portfolio footprintof the combined business and realization of synergies
BASF to initially hold 67% and LetterOne 33% in Wintershall DEA; value of Wintershall’s gas transportation business to be reflected through the issuanceof a mandatory convertible bond to BASF*
BASF and LetterOne are currently conducting a confirmatory due diligence andare negotiating definitive transaction agreements; closing could be expected inthe second half of 2018, subject to customary regulatory approvals
Initial Public Offering (IPO) envisaged in the medium term
March 201827 | BASF Capital Market Story
Agricultural Solutions4%
Investments in organic growthInvestments of ~€4.0 billion planned for 2018
Performance Products
16%Oil & Gas*18%
€19.0 billion
Capex budget 2018–2022 by segment
Other18%
Chemicals25%
Capex budget 2018–2022 by region
Asia Pacific14%
North America19%
Other**5%
Functional Materials& Solutions
19%
€19.0 billion
South America***8%
Europe 54%
* If the merger of BASF’s oil and gas activities with DEA is consummated as intended, these capital expenditures will no longer be reported as investments by the BASF Group. ** Alternative sites currently being investigated; *** Including Africa and Middle East
March 201828 | BASF Capital Market Story
Selected investment projects
Replacement of BASF’s acetylene plant in Ludwigshafen
~20 production facilities on the site use acetylene as a raw material 90,000 tons per year World’s most efficient
production process Startup end of 2019
New ibuprofen plant in Ludwigshafen; capacity expansion in the U.S.
First world-scale ibuprofen plant in Europe Additional capacity
expansion of ibuprofen plant in Bishop, Texas Investments: ~€200
million for both projects Startup in 2021
Expansion of BASF’s mobile emissions catalysts site in Poland
BASF’s largest emissions catalysts production site in Europe New production lines and
additional infrastructure Best-in-class technology
to meet tightening NOx and particulate emissions standards for diesel or gasoline engines
New plastic additives plant in Shanghai, China
Production of antioxidants, related forms and blends 42,000 tons per year Commercial production to
start by 2020
March 201829 | BASF Capital Market Story
Oil & Gas2%
Innovation will drive future growth
Agricultural Solutions27%
Chemicals7%
Performance Products21%
Corporate Research20%
Key facts
€1.9 billion R&D expenditures in 2017
R&D expense to sales ratio ~3%
~10,000 employees in R&D
~3,000 projects
~800 new patents in 2017
Research Verbund: Cooperations with more than 600 excellent partners from universities, startups and industry
In 2017, sales of >€9 billion from innovations launched on the market in the past five years
R&D expenditures 2017
€1.9 billion
Functional Materials & Solutions
23%
March 201830 | BASF Capital Market Story
BASF – capturing the fast-growing battery materials market
Market projections for 2025: 8-15 million electric vehicles* built per year 600-900 kt of CAM in e-mobility€18-24 billion CAM market size
Unparalleled access and commitment to the automotive industry Strategic global supply, technology and production partnerships
Rapid expansion to global, cost-competitive asset footprint
Well-established position in key CAM technologies (NCA & NCM)** Industry leading position in NCA capacity
E-mobility drives battery materials growth
Chemistry of cathode active materials (CAM) is key to
address e-mobility challenges
**NCA: nickel cobalt aluminum oxide; NCM: nickel cobalt manganese
BASF enables electromobility
*Electric vehicles: BEV, HEV and PHEV
20252017
~15-20% p.a.
Li-ion batterymarket
March 201831 | BASF Capital Market Story
Key supplier in battery materials, well-positioned for further growth
Shanghai, ChinaR&D, Application Technology Center
Onoda/Kitakyushu, JapanBASF TODA Battery Materials
Beachwood, OhioR&D, Application Technology Center
Elyria, OhioBASF TODA America
Europe, planned production
Amagasaki, JapanR&D, Application Technology Center
Battle Creek, MichiganBASF TODA America*
Shanghai, China BASF Battery Materials Headquarters
Production siteTechnology center
Ludwigshafen, GermanyR&D, Application Technology Center
Innovation in battery materials Leading technology portfolio and core patents ~€250 million total R&D spent so far ~150 scientists at four R&D centers across all regions Highest energy density CAM commercialized for EV application
* BASF TODA America: pending closing
Market presence Triple-digit-million euro battery material sales Supplier to world’s largest cell producers Already supplying leading OEMs’ platforms Under qualification for future key platforms
March 201832 | BASF Capital Market Story
Selected key technology capabilities reflect where BASF requires continued effort and resources to safeguard today’s and tomorrow’s excellence in innovation.
Polymer technologies
Biotechnology
Production processes Materials
Catalysis
Biodegradable & bio-based
materialsEnabling methods
Corporate Research: BASF’s key technology capabilities are bundled in seven focus areas
BASF’s key technology
capabilities
March 201833 | BASF Capital Market Story
Sustainable Solution Steering®
Goal: Increase the share of Accelerators from 23% in 2014 to 28% by 2020
4.3% 0.1%
>60,000 product applications analyzed
27.3% Accelerators
– strong growth in their markets
– deliver margins above the average
– represent majority of BASF’s R&D pipeline
68.3% Performers
<1% Challenged products
27.3%
68.3%
Substantial sustainability contribution in the value chain
Meets basic sustainability standards on the market
Specific sustainability issues which are being actively addressed
Significant sustainability concernidentified and action plan developed
SustainableSolutionSteering
Percentage of sales 2017
March 201834 | BASF Capital Market Story
BASF products and solutions in everyday lifeInnovations for a sustainable future
Luquafleece®
Tinosorb®
Infinergy®
Nutrilan®
Sokalan®
Cellasto®
Coatings
Tinuvin®
Superabsorbents
Ultramid®
Trilon® M
ecoflex® / ecovio®
Omega-3
March 201835 | BASF Capital Market Story
Resource efficiencyResponsible use of carbon sources
* BASF carbon mass balance calculation (2017, non-audited) ** Based on the chemical industry standard of the International Council of Chemical Associations (ICCA) and the World Business Council for Sustainable Development (WBCSD)
We are committed to resource efficiency and climate protection
BASF uses carbon raw materials responsibly: 82% of carbon converted to products, 17% consumed for process energy and converted to CO2, 1% waste*
Comparisons with European emissions trading benchmarks show that our chemical plants operate at above-average energy efficiency
23 million tons of CO2 emissions by BASF worldwide in 2017 compared to 10–30 million tons p.a. for one coal-fired power plant
Customers’ use of BASF’s climate protection products sold in 2017 avoided 570 million tons of CO2 equivalents (thereof 6% attributable to BASF)**
In 2017, BASF achieved CDP leadership status once again
March 201836 | BASF Capital Market Story
0
0,.001
2016 2017 2018 Total
DrivE program
Optimization of processes and structures in all regions, including
– manufacturing
– incremental capacities
– productivity increase
Project timeline: 2016–2018€350
million
€650 million
Goal €1 billion
Annual earnings contribution DrivEmillion €
1,000
Operational excellenceDrivE with ~€1 billion targeted earnings contribution from end of 2018 onwards
500
€500million
€150million
March 201837 | BASF Capital Market Story
Strong track record in operational excellence
* Excl. companies with major IFRS 10/11 restatements, i.e. BASF YPC Nanjing, Libya onshore,other Oil & Gas and Catalysts companies
50
100
150
200
250
300
350
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EBITDA
Sales
Fixed Costs
CAGREBITDA
8%
CAGRSales 5%
BASF Group* 2001–2017 indexed; CAGR 2001–2017
3%
CAGRFixed Costs
March 201838 | BASF Capital Market Story
Digitalization will support BASF’s growth and efficiency
Digital Business Models
Smart Innovation
Smart Manu-facturing
Smart Supply Chain
Growth Digital business models Customer connectivity Digitalization in R&D
New revenue streams Increased supply share Higher innovation output
Predictive maintenance Augmented reality in production Smart supply chain
Increased capacity Increased work efficiency Reduced working capital
Efficiency
March 201839 | BASF Capital Market Story
Agenda
At a glance1
Strategic levers2
Segments3► Chemicals► Performance Products► Functional Materials & Solutions► Agricultural Solutions► Oil & Gas
March 201840 | BASF Capital Market Story
ChemicalsHigher earnings driven by strong margins and higher volumes
Sales Q4 2017 vs. Q4 2016*million €
EBIT before special items* million €
Intermediates742+7%
Monomers1,786+17%
Petrochemicals1,630+35%
€4,158+21%
Sales development Volumes Prices Portfolio CurrenciesQ4 2017 vs. Q4 2016 6% 21% 0% (6)%FY 2017 vs. FY 2016 5% 23% 0% (1)%
629
1,053
0
400
800
1,200
Q4 2016 Q4 2017
2,032
4,233
0
1,000
2,000
3,000
4,000
5,000
FY 2016 FY 2017
+67% +108%
* Effective January 1, 2017, the Monomers and Dispersions & Pigments divisions’ activities for the electronics industry were combined into the global Electronic Materials business unit and allocated to the Dispersions & Pigments division in the Performance Products segment. The 2016 figures have been adjusted accordingly.
March 201841 | BASF Capital Market Story
Performance ProductsHigher volumes and prices could not offset increased raw materials costs; earnings declined
Performance Chemicals923(3)%
Nutrition & Health4430%
Care Chemicals1,241+5%
Dispersions & Pigments1,225+4%
* Effective January 1, 2017, the Monomers and Dispersions & Pigments divisions’ activities for the electronics industry were combined into the global Electronic Materials business unit and allocated to the Dispersions & Pigments division in the Performance Products segment. The 2016 figures have been adjusted accordingly.
Sales Q4 2017 vs. Q4 2016*million €
€3,832+2%
Sales development Volumes Prices Portfolio CurrenciesQ4 2017 vs. Q4 2016 7% 1% (1)% (5)%FY 2017 vs. FY 2016 5% 1% (1)% (1)%
EBIT before special items* million €
237
111
0
100
200
300
Q4 2016 Q4 2017
1,777
1,416
0
1,000
2,000
FY 2016 FY 2017
(53)%
(20)%
March 201842 | BASF Capital Market Story
Functional Materials & Solutions Sales growth on continued good demand; raw material price pressure led to earnings decrease
Coatings1,021+11%
Catalysts1,789+3%
ConstructionChemicals
588+4%
Performance Materials1,913+10%
Sales Q4 2017 vs. Q4 2016million €
Sales development Volumes Prices Portfolio CurrenciesQ4 2017 vs. Q4 2016 2% 8% 3% (6)%FY 2017 vs. FY 2016 4% 5% 3% (1)%
€5,311+7%
EBIT before special items million €
458
267
0
300
600
Q4 2016 Q4 2017
1,946
1,617
0
1,000
2,000
FY 2016 FY 2017
(42)%
(17)%
March 201843 | BASF Capital Market Story
Agricultural SolutionsEarnings increase due to higher volumes and improved margins
1,281 1,328
0
1,000
2,000
Q4 2016 Q4 2017
Sales Q4 2017 vs. Q4 2016million €
EBIT before special items million €
Sales development Volumes Prices Portfolio CurrenciesQ4 2017 vs. Q4 2016 14% (3)% 0% (7)%FY 2017 vs. FY 2016 6% (3)% 0% (1)%
+4%
79
207
0
100
200
Q4 2016 Q4 2017
1,087 1,033
0
250
500
750
1,000
1,250
1,500
FY 2016 FY 2017
+162%
(5)%
March 201844 | BASF Capital Market Story
Oil & GasHigher oil and gas prices led to earnings increase
922862
0
500
1,000
Q4 2016 Q4 2017
Sales Q4 2017 vs. Q4 2016million €
EBIT before special items / net income million €
(7)%
163 182
260
318
0
100
200
300
400
517
362
793719
0
200
400
600
800
1,000
Sales development Volumes Prices / Currencies PortfolioQ4 2017 vs. Q4 2016 (18)% 11% 0%FY 2017 vs. FY 2016 4% 13% 0%
EBIT before special items Net income
Q42016
Q42017
Q42016
Q42017
FY2016
FY2017
FY2016
FY2017
EBIT before special items Net income
March 201845 | BASF Capital Market Story
Review of “Other”
Financial figures Q4 2017 Q4 2016 FY 2017 FY 2016million € million € million € million €
Sales 608 518 2,242 2,018
EBIT before special items (38) (386) (764) (1,050)
Thereof Costs of corporate research (112) (131) (379) (395)
Costs of corporate headquarters (57) (57) (224) (222)
Foreign currency results, hedging and other measurement effects (23) (182) (28) (331)
Other businesses 54 (12) 60 54
Special items (7) (57) (35) (41)
EBIT (45) (443) (799) (1,091)
March 201846 | BASF Capital Market Story
Cash flow development in 2017
Cash flow development 2017 2016million € million €
Cash provided by operating activities 8,785 7,717Thereof Changes in net working capital (1,167) 104
Miscellaneous items (339) (734)
Cash used in investing activities (3,958) (6,490)Thereof Payments made for tangible / intangible assets (3,996) (4,145)
Acquisitions / divestitures 27 (2,164)
Cash provided by financing activities 394 (2,160)Thereof Changes in financial liabilities 3,248 579
Dividends (2,873) (2,767)
Free cash flow 4,789 3,572
March 201847 | BASF Capital Market Story
Balance sheet remains strong
Balance sheet 2017 vs. 2016billion €
Total assets increased by €2.3 billiondue to higher cash and cash equivalents related to the financing of the announced acquisitions
Equity ratio at 44.1%
Provisions for pensions and similar obligations decreased by €1.9 billion
Net debt decreased by €2.9 billion to€11.5 billion
Liquid funds
Accountsreceivable
Non-currentassets
Inventories
Other assets
Otherliabilities
Financialdebt
Equity
26.0 27.6
18.0 16.3
34.8 32.6
Dec 31, 2017 Dec 31, 2016
6.5 1.9
3.23.0
11.211.0
10.310.0
47.650.6
Dec 31, 2017 Dec 31, 2016
76.578.8 76.578.8