1. 1. 150 years BASF with slightly lower earnings before special items; outlook 2016 confirmed Analyst Conference Call Q1 2016, April 29, 2016
2. 2. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 2 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.
3. 3. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 3 Sales development Volumes Prices Portfolio Currencies Q1 2016 vs. Q1 2015 0% (6%) (22%) (1%) Q1 2016: BASF with slightly lower earnings compared to strong prior-year quarter Financial figures Q1 2016 Q1 2015 Change Sales 14.2 billion 20.1 billion (29%) EBITDA 2.8 billion 2.9 billion (3%) EBIT before special items 1.9 billion 2.1 billion (8%) EBIT 1.9 billion 2.0 billion (6%) Net income 1.4 billion 1.2 billion +18% Reported EPS 1.51 1.28 +18% Adjusted EPS 1.64 1.43 +15% Operating cash flow 1.0 billion 2.4 billion (56%)
4. 4. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 4 Milestones in Q1 2016 Start-up of butanediol plant at the integrated PolyTHF complex in Korla, China JV with Aventium intended for production of furandicarboxylic acid (FDCA) in Belgium Update of peak sales potential for product launches in Agricultural Solutions Joint operation of polyoxymethylene (POM) with Kolon Plastics planned in Korea
5. 5. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 5 Sales development Volumes Prices Portfolio Currencies Q1 2016 vs. Q1 2015 (3%) (16%) 0% 0% Intermediates 646 (12%) Monomers 1,307 (18%) Petrochemicals 1,196 (22%) 3,149 (19%) EBIT before special items million 726 548 633 249 465 0 200 400 600 800 Q1 Q2 Q3 Q4 Q1 20162015 Sales Q1 2016 vs. Q1 2015 million Chemicals Lower margins and higher fixed costs result in considerably decreased earnings
6. 6. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 6 Sales development Volumes Prices Portfolio Currencies Q1 2016 vs. Q1 2015 1% (4%) (2%) (1%) Performance Chemicals 955 (10%) Performance Products Increase in earnings by 6%, supported by successful restructuring Care Chemicals 1,204 (7%) 3,783 (6%)Nutrition & Health 488 (5%) Dispersions & Pigments 1,136 (2%) 515 304 319 228 547 0 200 400 600 Q1 Q2 Q3 Q4 Q1 Sales Q1 2016 vs. Q1 2015 million EBIT before special items million 20162015
7. 7. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 7 Catalysts 1,467 (8%) Coatings 738 (6%) 4,408 (4%) Performance Materials 1,670 (2%) 431 458 371 389 456 0 200 400 600 Q1 Q2 Q3 Q4 Q1 Sales development Volumes Prices Portfolio Currencies Q1 2016 vs. Q1 2015 5% (7%) 0% (2%) EBIT before special items million 20162015 Construction Chemicals 533 +6% Functional Materials & Solutions Good demand from the automotive and construction industries Sales Q1 2016 vs. Q1 2015 million
8. 8. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 8 1.898 1.780 0 1.000 2.000 Q1 Q1 Sales development Volumes Prices Portfolio Currencies Q1 2016 vs. Q1 2015 (5%) 2% 0% (3%) 2016201520162015 (6%) 574 591 0 200 400 600 Q1 Q1 +3% Agricultural Solutions Slight earnings increase in a challenging market environment Sales million EBIT before special items million
9. 9. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 9 Sales development Volumes Prices/Currencies Portfolio Q1 2016 vs. Q1 2015 2% (4%) (86%) Oil & Gas Significantly lower sales and earnings 4,249 744 6110 1,000 2,000 3,000 4,000 5,000 Q1 Q1 20162015 * Including transportation business 161 359 47 276 66 -100 100 300 500 EBIT bSI Net income EBIT bSI Net income Natural Gas TradingExploration & Production 437 276 EBIT before special items, net income million Sales million * 20162015 Q1 Q1 (88%) Natural Gas TradingExploration & Production 4,993 * * Including transportation business
10. 10. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 10 Review of Other million Q1 2016 Q1 2015 Sales 477 688 EBIT before special items (219) (613) Thereof Corporate research costs (99) (101) Costs of corporate headquarters (55) (55) Foreign currency results, hedging and other measurement effects 68 (382) Other businesses 18 35 Special items (26) (82) EBIT (245) (695)
11. 11. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 11 Cash flow Q1 2016 million Q1 2016 Q1 2015 Cash provided by operating activities 1,046 2,390 Thereof changes in net working capital (1,248) 309 miscellaneous items (39) 5 Cash used in investing activities (1,258) (1,502) Thereof payments related to tangible / intangible assets (1,001) (1,278) acquisitions / divestitures 0 26 Cash used in / provided by financing activities 1,997 (400) Thereof changes in financial liabilities 1,996 (299) dividends (4) (101)
12. 12. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 12 Dec 31 2015 Mar 31 2016 3.1 3.8 Balance sheet remains strong Balance sheet March 31, 2016 vs. December 31, 2015 billion Liquid funds Accounts receivable Long-term assets 9.5 Other liabilities Financial debt Stockholders equity Inventories Other assets 9.7 2.2 10.7 9.6 4.0 27.8 20.9 1.3 28.4 22.4 2.0 15.1 14.4 46.3 70.8 73.7 45.6 Dec 31 2015 Mar 31 2016 70.8 73.7 24.1 15.2 31.5 26.0 16.8 30.9 Total assets increased by 2.9 billion, mainly due to higher cash position and seasonally-driven increase in accounts receivable Long-term assets slightly lower caused by currency effects Provisions for pension obligations increased by 2.0 billion as a result of lower interest rates Net debt slightly declined to 12.8 billion Equity ratio: 42%
13. 13. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 13 Outlook 2016 Sales will be considerably below prior year, due to the divestiture of the natural gas trading and storage activities and the lower oil and gas prices. Excluding the effects of acquisitions and divestitures, we expect higher volumes in all segments. We expect EBIT before special items to be slightly below the previous year driven by drastically lower earnings of Oil & Gas. We plan higher earnings in our chemicals business and in the Agricultural Solutions segment. EBIT after cost of capital is expected to be significantly below prior year. However, we still expect to earn a premium on our cost of capital. Assumptions 2016 GDP growth: +2.3% Growth in industrial production: +2.0% Growth in chemical production (excl. pharma): +3.4% Exchange rate: $1.10 per euro Oil price (Brent): $40 per barrel Outlook 2016 confirmed
14. 14. 150 years BASF Q1 2016 Analyst Conference Call, April 29, 2016 14