BASF in India Report 2012

A young girl balancing the Sustainability Scale at the Indo-German Urban Mela. Copyright: “Germany and India 2011-2012: Infinite Opportunities”

Chemicals PlasticsThe Chemicals segment comprises our business with basic chemicals and intermediates. Our portfolio ranges from solvents, plasticizers, glues and electronic chemicals to starting materials for detergents, plastics, textile fibers, paints and coatings, as well as for crop protection products and pharmaceuticals. In addition to supplying customers in the chemical industry and numerous other sectors, we also ensure that other BASF segments are supplied with chemicals for producing downstream products.

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 insulating rigid foams, they increase the energy efficiency of refrigerators.

Performance Products Functional SolutionsOur Performance Products lend stability and color to countless everyday items and help to improve their application properties. Our product portfolio also includes vitamins and food additives as well as ingredients for phar-maceuticals and for hygiene, home and personal care items. Other products from this segment 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.

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, battery materials, automotive and industrial coatings and concrete admixtures as well as construction systems such as tile adhesives and decorative paints.

Agricultural Solutions Oil & GasOur crop protection products guard against fungal diseases, insects and weeds, increase the quality of agricultural products and secure crop yields. Our research in plant biotechnology concentrates on plants for greater efficiency in agriculture, better nutrition, and use as renewable raw materials. Research and development expenses, sales, earnings and all other data pertaining to BASF Plant Science are not included in the Agricultural Solutions segment; they are reported in Other.

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.

Key data Chemicals (million €)

2012 2011 Change in %

Sales 13,824 12,958 6.7

Thereof Inorganics 1,735 1,415 22.6

Petrochemicals 9,179 8,839 3.8

Intermediates 2,910 2,704 7.6

EBITDA 2,409 3,188 (24.4)

Income from operations before special items 1,717 2,441 (29.7)

Income from operations (EBIT) 1,718 2,442 (29.6)

Key data Plastics (million €)

2012 2011 Change in %

Sales 11,402 10,990 3.7

Thereof Performance Polymers 5,110 5,138 (0.5)

Polyurethanes 6,292 5,852 7.5

EBITDA 1,314 1,678 (21.7)

Income from operations before special items 873 1,203 (27.4)

Income from operations (EBIT) 874 1,259 (30.6)

Key data Performance Products (million €)

2012 2011 Change in %

Sales 15,871 15,697 1.1

Thereof Dispersions & Pigments 3,677 3,509 4.8

Care Chemicals 4,957 5,174 (4.2)

Nutrition & Health 1,959 1,862 5.2

Paper Chemicals 1,634 1,623 0.7

Performance Chemicals 3,644 3,529 3.3

EBITDA 2,113 2,312 (8.6)

Income from operations before special items 1,428 1,727 (17.3)

Income from operations (EBIT) 1,286 1,361 (5.5)

Key data Functional Solutions (million €)

2012 2011 Change in %

Sales 11,460 11,361 0.9

Thereof Catalysts 6,184 6,380 (3.1)

Construction Chemicals 2,315 2,181 6.1

Coatings 2,961 2,800 5.8

EBITDA 894 921 (2.9)

Income from operations before special items 561 559 0.4

Income from operations (EBIT) 435 427 1.9

Key data Agricultural Solutions (million €)

2012 2011 Change in %

Sales 4,679 4,165 12.3

EBITDA 1,182 981 20.5

Income from operations before special items 1,037 810 28.0

Income from operations (EBIT) 1,026 808 27.0

Key data Oil & Gas (million €)

2012 2011 Change in %

Sales 16,700 12,051 38.6

Thereof Exploration & Production 5,330 3,182 67.5

Natural Gas Trading 11,370 8,869 28.2

EBITDA 4,721 2,616 80.5

Income from operations before special items 4,104 2,111 94.4

Income from operations (EBIT) 3,904 2,111 84.9

Net income 1,201 1,064 12.9

Innovation

2012 2011 Change in %

Research and development expenses million € 1,746 1,605 8.8

Number of employees in research and development as of December 31 10,542 10,126 4.1

BASF Group 2012 - At a Glance

Economic data2012 2011 Change in %

Sales million € 78,729 73,497 7.1

Income from operations before depreciation and amortization (EBITDA) million € 12,516 11,993 4.4

Income from operations (EBIT) before special items million € 8,881 8,447 5.1

Income from operations (EBIT) million € 8,976 8,586 4.5

Income before taxes and minority interests million € 8,436 8,970 (6.0)

Net income million € 4,879 6,188 (21.2)

Earnings per share € 5.31 6.74 (21.2)

Adjusted earnings per share € 5.71 6.26 (8.8)

Dividend per share € 2.60 2.50 4.0

Cash provided by operating activities million € 6,733 7,105 (5.2)

Additions to long-term assets1 million € 5,397 3,646 48.0

Depreciation and amortization1 million € 3,540 3,407 3.9

Return on assets % 14.6 16.1 –

Return on equity after tax % 20.4 27.5 –

1 Including acquisitions

1

2

3

4

Creation of value added(Million €, previous year’s figures in parentheses)

Value added statement BASF Group 2012

Businessperformance

80,853 (76,701)

Use of value added(Previous year’s figures in parentheses)

Employees(46.0%) 48.9%Government(14.5%) 19.1%Minority interests(2.2%) 1.8%Creditors(4.1%) 4.0%Remaining for shareholders (Dividend and retention)(33.2%)

26.2%

1 Value added 18,619 (18,652)

2 Amortization 3,540 (3,407) and depreciation

3 Services purchased, 13,889 (12,656) energy costs and other expenses

4 Cost of raw 44,805 (41,986) materials and merchandise

3 Value added results from the company’s performance minus goods and services purchased, depreciation and amortization. It shows the BASF Group’s contribution to both private and public income as well as the distribution of this contribution among all stakeholders.

Value added 20123

B

AS

F G

rou

p 2

012

at a

gla

nce

Employees and society2012 2011 Change in %

Employees as of December 31 113,262 111,141 1.9

Apprentices as of December 31 2,809 2,565 9.5

Personnel expenses million € 9,089 8,576 6.0

Annual bonus % of Group companies 97.5 93.7 4.1

Donations and sponsorship million € 49.2 48.7 1.0

Supply chain management and Responsible Care

2012 2011 Change in %

Number of on-site audits of raw material suppliers 210 206 2.0

Number of environmental and safety audits 112 97 15.5

Number of occupational medicine and health protection audits 42 35 20.0

Safety and health

2012 2011 Change in %

Transportation accidents per 10,000 shipments 0.24 0.18 33.3

Product spillages during transportation per 10,000 shipments 0.25 0.30 (16.7)

Lost time injuries per million working hours 1.7 1.9 (10.5)

Health Performance Index3 0.89 – –

3 The Health Performance Index was newly defined in 2012.

Environment

2012 2011 Change in %

Primary energy usage4 million MWh 61.5 63.8 (3.6)

Energy efficiency in production processes metric tons of sales product/MWh 0.589 0.6216 (5.2)

Total water withdrawal million cubic meters 2,009 2,130 (5.7)

Withdrawal of drinking water million cubic meters 23 24 (4.2)

Emissions of organic substances to water5 thousand metric tons 21.6 24.3 (11.1)

Emissions of nitrogen to water5 thousand metric tons 2.8 2.9 (3.4)

Emissions of heavy metals to water5 metric tons 26 24 8.3

Emissions of greenhouse gases million metric tons of CO2 equivalents 24.7 25.8 (4.3)

Emissions to air (air pollutants)5 thousand metric tons 31.6 34.47 (8.1)

Waste million metric tons 2.24 2.118 6.2

Operating costs for environmental protection facilities million € 910 850 7.1

Investments in environmental protection million € 272 190 43.2

4 Primary energy used in BASF’s plants as well as in the plants of our energy suppliers to cover energy demand for production processes5 Excluding emissions from oil and gas production6 Deviation from Report 2011 due to reclassification of natural gas usage7 Deviation from Report 2011 due to retroactive inclusion of emissions from a former Cognis site8 Deviation from Report 2011 primarily due to retroactive inclusion of waste from construction activities at the Ludwigshafen site

1BASF in India

Report 2012

About the Report

“BASF in India – Report” is published annually as a concise document about the performance of our activities across the three dimensions of sustainability – economy, environment, and society – in India. The reporting period for this publication is the financial year 2012. The financial data of BASF Group presented in this report is prepared in accordance with the German Commercial Code and the International Financial Reporting Standards (IFRS). Local sales figures in this report refer to sales by BASF Group companies to customers located in India. Environmental data at joint venture companies in India are reported pro rata based on our stake. Employee numbers refer to total employment by major BASF Group companies in India and companies where BASF has a stake over 50%, as of December 31, 2012, with 50% joint ventures counted at 50%. All figures are based on the scope of consolidation and segment structure of BASF Group valid on December 31, 2012. IFRS 10, IFRS 11 and IAS 19 (revised) have not yet been taken into account.

BASF in IndiaReport 2012

Contents About the Report 1

BASF Group 3

BASF in Asia Pacific 6

Message from the Chairman 8

BASF in India 10

Strategic areas 16

Environment, health and safety 20

Employees 26

Society 28

Year of Germany in India 30

Education 32

Recognition 33

BASF in the Regions 34

BASF Group Summary 36

Connect with BASF 37

BASF’s Group 2012 - At a Glance Inside front cover

1About the Report

BASF in India

Report 20122 BASF Group

Chemical technicians Luigi Marano and Enrico Gundermann carry out an inspection in the hydrogen plant. This plant is an important supplier of industrial gases in BASF’s Verbund.

3BASF in India

Report 2012 BASF Group

BASF Group The world’s leading chemical company – The Chemical Company

We are the world’s leading chemical company – The Chemical Company. Around 113,000 employees work in the BASF Group toward contributing to the success of our customers from nearly all sectors and almost every country in the world. Our broad portfolio is arranged into six segments: Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions and Oil & Gas.

Markets and sites BASF has subsidiaries in more than eighty countries and supplies products to a large number of business partners in nearly every part of the world. In 2012, we achieved 55% of our sales with customers in Europe, of which 36 percentage points were in the Oil & Gas segment. In addition, 18% of sales were generated in North America; 19% in Asia Pacific; and 8% in South America, Africa, Middle East. We operate six Verbund sites as well as approximately 380 additional production sites worldwide. Our Verbund site in Ludwigshafen is the largest integrated chemical complex in the world. This was where the Verbund concept was developed and continuously optimized before it was applied to other sites around the world. The Production Verbund, for example, intelligently links production units and energy demand so that heat from production processes can be used as energy in other plants, saving both primary resources and costs. Another important part of the Verbund concept is the Know-How Verbund. Expert knowledge is pooled in our central research areas.

For more on the Verbund concept, see basf.com/verbund_e

Organization of the BASF GroupUntil the end of 2012, BASF’s six segments contained 15 divisions which bore operational responsibility and managed our 70 global and regional business units. The divisions develop strategies for our approximately 80 strategic business units and are organized according to sectors or products. The regional divisions contribute to the local development of our business and help to exploit market potential. They are also responsible for optimizing the infrastructure for our business. For financial reporting purposes, our divisions are grouped into the following four regions: Europe; North America; Asia Pacific; and South America, Africa, Middle East. Three central divisions, six corporate departments and eleven competence centers provide Group-wide services such as finance, investor relations, communications, human resources, research, engineering, site management and environment, health and safety.

Tank storage facility at Friesenheim Island section of BASF’s Verbund site in Ludwigshafen.

The BASF Group

− Six Verbund sites and approximately 380 other production sites worldwide; around 113,000 employees − Ludwigshafen is the location of the largest BASF Verbund site, and where the Verbund concept was created − Verbund: Intelligent plant networking in the Production Verbund; Know-How and Research Verbund

Organization of the BASF Group

− Six segments contain 15 divisions that manage our global and regional business units − Regional divisions optimize the infrastructure and support operations − Corporate divisions and departments as well as competence centers provide Group-wide services

BASF in India

Report 20124 BASF Group

With the “We create chemistry” strategy, BASF has set itself ambitious goals in order to strengthen its position as the world’s leading chemical company. We want to contribute to a sustainable future and have embedded this into our corporate purpose: “We create chemistry for a sustainable future.”

In 2050, around nine billion people will live on this planet. While the world population and its demands will keep growing, the planet’s resources are finite. On the one hand, population growth is associated with enormous global challenges; but we also see many opportunities, especially for the chemical industry.

Our purposeWe create chemistry for a sustainable future

Growth in the chemicals sector will be particularly dynamic in the emerging economies. We expect that these markets will account for around 60% of global chemical production by 2020. Innovations based on chemistry will play a key role in these countries, particularly in three areas:

− Resources, environment and climate− Food and nutrition− Quality of life

Our leading position as an integrated global chemical company opens up opportunities for us in all three of these areas. In pur-suing them, we act in accordance with four strategic principles.

Our strategic principlesWe add value as one companyOur Verbund concept is unique in the industry. We plan to strengthen this sophisticated and

profitable system even further. It extends from the Production Verbund and Technology Verbund to the Know-How Verbund, and provides access to all relevant customer industries world-wide. In this way, we combine our strengths and add value as one company.

We innovate to make our customersmore successfulWe want to focus our business even more strongly

on our customers’ needs and contribute to their success with innovative and sustainable solutions. Through close partner-ships with customers and research institutes, we link expertise in chemistry, biology, physics, materials sciences and engineer-ing to jointly develop customized products as well as functional materials and system solutions.

Corporate Strategy

We drive sustainable solutionsIn the future, sustainability will increasingly become a starting point for new business opportunities.

We therefore value sustainability and innovation as impor tant drivers for profitable growth.

We form the best teamCommitted and qualified employees around the world are the key to making our contribution to a sus-

tainable future. That is why we will continue to pursue our goal of building the best team. We offer excellent working conditions and an open leadership culture that fosters mutual trust and respect and encourages high motivation.

Our valuesHow we act is critical for the successful implementation of our strategy: This is what our values represent. They guide how we interact with society, our partners and with each other.

CreativeIn order to find innovative and sustainable solutions, we have the courage to pursue bold ideas. We bring together our exper-tise in many different fields and build partnerships to develop creative, value-adding solutions. We constantly improve our products, services and solutions.

Open We value diversity – in people, opinions and experience. That is why we foster dialog based on honesty, respect and mutual trust. We explore our talents and capabilities.

ResponsibleWe act responsibly as an integral part of society. Thereby, we strictly adhere to our compliance standards. And in everything we do, we never compromise on safety.

EntrepreneurialWe all contribute to BASF’s success, as individuals and as a team. BASF turns market needs into customer solutions. We succeed in this because we take ownership and embrace accountability for our work.

5BASF in India

Report 2012 BASF Group

Goals

Growth and profitability1

Annual goals 2015 Goals 2020 GoalsStatus at

year-end 2012

Sales Approx. €85 billion Approx. €115 billion €78.7 billion

Premium on cost of capital At least €2.5 billion on average each year €1.5 billion

EBITDA

Approx. €15 billion

Doubling compared with 2010 to approx.

€23 billion €12.5 billion

Earnings per share Around €7.50 €5.31

1 We have set ourselves these goals as part of the “We create chemistry” strategy adopted in 2011. Our goals are based on the assumptions that we will continue to grow two percentage points faster than global chemical production annually and that global gross domestic product will grow by an average of 3% every year until 2020 and worldwide chemical production by 4% every year.

Employees

Long-term goalsStatus at

year-end 2012

International proportion of senior executives Increase in the proportion of non-German senior executives (baseline 2003: 30%) 33.8%

Senior executives with international experience Proportion of senior executives with international experience over 80% 80.4%

Women in executive positions Increase in the proportion of female executives worldwide 17.0%

Personnel development

Establishment of personnel development as a responsibility shared by employees and managers based on relevant processes and tools

Introduced for around 30,000 employees

worldwide in first phase

Environment, safety and health

2020 GoalsStatus at

year-end 2012

Energy and climate protection

Improvement of energy efficiency in production processes2 (baseline 2002) +35% +19.3%

Greenhouse gas emissions per metric ton of sales product2 (baseline 2002) –40% –31.7%

Stop flaring of associated gas released during Wintershall’s production of crude oil (2012 goal) 100% 100%

Greenhouse gas emissions per amount and distance of transported gas (baseline 2010) –10% –22.1%

Water

Emission of organic substances to water2 (baseline 2002) –80% –76.4%

Emission of nitrogen to water2 (baseline 2002) –80% –87.3%

Emission of heavy metals to water2 (baseline 2002) –60% –56.8%

Withdrawal of drinking water for production (baseline 2010) –50% –23.2%

Introduction of sustainable water management at production sites in water stress areas 100% 3.1%

Air

Emission of air pollutants2 (baseline 2002) –70% –63.1%

Transportation

Transportation accidents per 10,000 shipments (baseline 2003) –70% –57%

Production

Lost time injuries per million working hours (baseline 2002) –80% –48%

Health Performance Index (annual goal) >0.9 0.89

Products

Risk assessment for all products sold worldwide by BASF in quantities of more than one metric ton per year >99% 45%

2 Excluding oil and gas production

BASF in India

Report 2012BASF in Asia Pacific 6

What is BASF’s plan for Asia Pacific? In the next decade, Asia Pacific will face a lot of huge challenges while remaining the world’s fastest growing market for the chemical industry. We call our Asia Pacific strategy “grow smartly”, because we want to make BASF the leading provider of sustainable solutions for the Asia Pacific region. Based on our strong global R&D network, we will considerably strengthen our innovations capabilities in Asia Pacific, enabling us to better serve our customers in all industries in the region.

What are BASF’s expectations from its new strategy?According to our strategy, we intend to grow profitably at least two percentage points above chemical production to achieve sales of €25 billion by 2020, by developing innovations that create sustainable solutions for its customers. With our partners we will invest €10 billion in order to achieve local production of 75% of our sales to Asia Pacific, and we will create around 9,000 new jobs in the region between 2013 and 2020.

How will BASF grow sustainably in the region?BASF aims to contribute to the social development of the communities where we do business. This includes innovative solutions for our customers, partnerships for energy – and resource-efficient investments, transparency in reporting, and engagement with society and stakeholders. With our chemistry, we focus on providing solutions for areas such as mobility, housing, food safety, wind energy, and water purification.

What is the role of India in BASF’s Asia Pacific strategy?India is one of the chemical markets in Asia Pacific that has great potential. So we expect India to contribute significantly to our sales in the region. We will therefore continue to invest in new projects. One important step taken in this direction is our Rs. 1,000 crores (€150 million) investment in Dahej in the state of Gujarat, where we are building an integrated chemical production site. This is coupled with facility improvements at key manufacturing sites in Ankleshwar and Mangalore, to strengthen our manufacturing footprint and better serve our customers. Expanding our capabilities in research and development will be crucial for our long-term success in India. We also see India as a key market to develop solutions for the needs of the emerging middle class, especially for affordable mass housing, food fortification, wind energy and water purification.

BASF in Asia Pacific An interview with Dr. Martin Brudermüller

BASF in Asia Pacific 6

Vice Chairman of the Board of Executive Directors, BASF SE, responsible for Asia Pacific

Dr. Martin Brudermüller

“We will continue to invest in new projects in India to capture the opportunities of the Indian market. Expanding our capabilities in research and development will be crucial for our long-term success.”

Dr. Martin Brudermüller Vice Chairman of the Board of Executive Directors, BASF SE

Sales (billion €) (by location of customer)

2012 14.9

2011 14.4

2010 12.5

2009 8.7

2008 9.3

Asia Pacific Strategy

Employees

2012 18,128

2011 17,342

2010 15,965

2009 14,817

2008 13,734

BASF is implementing its global “We create chemistry” strategy in Asia Pacific with a set of ambitious targets and a focus on sustainability. According to this regional strategy, called “grow smartly”, BASF intends to grow profitably at least two percentage points above chemical production and achieve sales of €25 billion in Asia Pacific by 2020.

7BASF in India

Report 2012 BASF in Asia Pacific

By 2020, BASF targets sales of €25 billion to customers in the Asia Pacific region.

Between 2013 and 2020, BASF needs to create 9,000 value-adding employment opportunities.

Goal 2020Sales to Asia Pacific region

Goal 2020Talent development

€25 billion

>More than €2 billion in regional sales are targeted through new business and acquisitions in new product areas in identified growth fields.

By 2020, BASF in Asia Pacific aims to achieve annual cost savings of €1 billion through efficiency programs.

Goal 2020Portfolio

Goal 2020Operational excellence

€2 billion €1billion

BASF aims to produce 75% of what it sells locally in Asia Pacific, saving costs and conserving resources. To achieve this, the company intends to invest €10 billion between 2013 and 2020, together with partners.

Asia Pacific is rapidly becoming a crucial part of the global research and development network. By 2020, BASF will be conducting around 25% of its global R&D activities in Asia Pacific. To support this, BASF will increase its R&D team in Asia Pacific to around 3,500 by 2020.

Goal 2020Local production

Goal 2020Innovation

75% 3,500

9,000

BASF in India

Report 2012Message from the Chairman8

“We create chemistry” world tour in India

At BASF, we firmly believe that innovation holds the key to future success. The “We create chemistry” world tour demonstrates how we apply our leading-edge science and technology know-how. By showcasing 20 world-class innovations, ranging from organic solar cells to biodegradable plastics, water solutions and sustainable flooring solutions, we have been able to offer our stakeholders an opportunity to learn more about BASF and our innovative offerings to promote sustainability.

At the “We create chemistry” world tour more than 1,200 customers, suppliers, scientists, government officials, journalists, employees and other stakeholders gathered to experience tangible demonstrations of chemistry’s contribution to balancing economic success, social responsibility and environmental protection.

Message from the Chairman 9BASF in India

Report 2012

Prasad ChandranChairman, BASF Companies in India & Head South Asia

Letter from the ChairmanA balanced growth

The year 2012 has seen many firsts for BASF in India. The highpoints included our announcement of an investment of Rs. 1,000 crores in Dahej, coupled with several facility expansions, the continued roll-out of our corporate strategy, and the Year of Germany in India, among others. We kept our growth momentum while combating the global economic crisis. In doing so, we put a strong focus on improved synergies and operational excellence. Going forward, we will continue to drive innovations to tap new markets. For instance, we are currently investigating opportunities of wider market access to the so-called “Base of Pyramid”. Initiatives like these help us grow and weather the storms of uncertainty. This also has been one of the most visible years for BASF in India. We connected with our customers and stakeholders through the Indo-German Urban Mela, our own “We Create Chemistry” world tour and a highly visible advertising campaign. These dynamic platforms enabled us to present the role of chemistry in daily life and in addressing future challenges. We continued to nurture talent, offer opportunities and build skills in alignment with our global employee development program. In 2012, we hosted the first BASF Global Safety Week, where employees came together to pledge their support to safe behavior. We continued to contribute to community development around the sites where we operate and also worked at national and local levels to enhance good governance standards. This included the launch of the Disability Resource Center in Cuddalore, and our ongoing Good Governance Seminar Series.

All in all, 2012 has been an exciting year for BASF in India. The renewed focus of our “We create chemistry” strategy inspired us to intensify our efforts to grow, seize new market opportunities and create chemistry for a sustainable future.

“We kept our growth momentum while combating the global economic crisis.”

Prasad Chandran

− Chairman of BASF Companies in India & Head South Asia − Drives the “Million Minds” project, a BASF initiative to improve governance standards in India − Member of Advisory Board of The Energy and Resource Institute (TERI) and also a Member of the Executive Committee of TERI - BCSD (Business Council for Sustainable Development) − Chairperson of the Bombay Chamber of Commerce’s Expert Committee on Governance

BASF in India

Report 201210 BASF in India

The early days

1865: Badische Anilin- und Soda-Fabrik Aktiengesellschaft (BASF AG) is founded in Ludwigshafen, Germany.

1890: BASF’s first sales figures for India reported – BASF’s first interaction with India is in textile colors, beginning in 1890.

May 13, 1943: R. A. Cole Private Limited is incorporated, which will later become BASF India Limited.

1961: BASF acquires a 50% holding in R. A. Cole Private Limited and the Company is known as R. A. Cole Limited. At this time, BASF in India is involved in the production of Expandable Polystyrene under the “Thermocole” trade name at the Thane site, BASF’s first production site in Asia.

January 9, 1963: R. A. Cole Limited is renamed Indoplast Limited, marking a shift in focus towards plastics manufacturing.

September 23, 1967: Indoplast Limited is renamed BASF India Limited, its present name.

April 1968: BASF India Limited is listed on The Bombay Stock Exchange Limited (BSE).

1995: With the purchase of additional shares in 1994, BASF AG acquires majority holding (50.00104%) in BASF India.

May 1995: BASF India Limited is listed on The National Stock Exchange of India Limited (NSE).

May 1996: BASF Industries Limited, a BASF Group Company, is formed.

1996: BASF starts operations at its new production site in Mangalore, manufacturing dyes and dispersions.

BASF in India Our history - A solid foundation for growth

Gaining momentum

1998: The automotive coatings business is acquired from Dr. Beck & Co. and printing inks business is acquired from JBA Printing Inks Limited. The automotive coatings and printing inks businesses later become a part of BASF Industries Limited.

January 2000: BASF acquires the coil coatings business from Hydro Coatings worldwide and Hydro Coatings India Limited is renamed BASF Coatings Private Limited.

November 2000: BASF and the New York-based Chatterjee Group form a strategic alliance to produce and market polystyrene in India. BASF takes a majority share in the partnership and takes operational and administrative direction of Pushpa Polymers Private Limited. This acquisition makes BASF the first globally active polystyrene manufacturer with its own production in India. Pushpa Polymers Private Limited changes its name to BASF Styrenics Private Limited.

July 2001: Cyanamid Agro Limited is merged with BASF India Limited pursuant to BASF’s global acquisition of Cyanamid AG.

May 2003: The automotive coatings business is transferred from BASF Industries Limited to BASF Coatings Private Limited.

February 2005: The printing inks business of BASF Industries Limited is divested.

April 6, 2005: BASF Polyurethanes India Limited is formed as a 100% subsidiary of BASF India Limited.

July 2006: BASF AG acquires the global construction chemicals business of Degussa AG. This leads to the inception of BASF Construction Chemicals (India) Private Limited, which was earlier known as Master Builder Technology Private Limited.

Then

BASF shares a rich and vibrant history with India that spans over a century. BASF’s first sales figures for India were reported in 1890. BASF sold dyestuffs (textile colors) through a sales company called M. Ostermeyer & Co. in Bombay (now Mumbai). Synthetic indigo, introduced by BASF in 1897, was the main export.

BASF’s design promoting indigo color.

11BASF in India

Report 2012 BASF in India

September 2006: BASF AG acquires US-based Engelhard Corporation. This leads to the inception of BASF Catalysts India Private Limited, which was earlier known as Engelhard Environmental Systems (India) Private Limited.

January 1, 2008: BASF AG converts to a European company and is now known as BASF SE.

September 2008: BASF SE acquires Ciba Holding AG and begins integration of local Ciba entities around the world.

February 2010: The merger of Ciba India Limited, Diamond Dye-Chem Limited and Ciba Research (India) Private Limited with BASF India Limited is completed.

November 2010: BASF SE acquires Cognis Holding GmbH worldwide.

December 2010: BASF decides on a global carve-out of its styrene business. BASF SE and INEOS Industries Holdings Limited plan to enter a new joint venture - Styrolution.

January 2011: Three BASF legal entities in India – BASF Coatings (India) Private Limited, BASF Construction Chemicals (India) Private Limited, and BASF Polyurethanes India Limited are merged with BASF India Limited.

July 2011: Further to the global acquisition, BASF India Limited acquires the business of Cognis Specialty Chemicals Private Limited in India, including all assets and liabilities.

October 2011: Styrolution officially starts operating as an independent company, following the approval of relevant authorities.

2012 – Creating a platform for the future

April 2012: Investment in DahejBASF India announces plans to set up an integrated production plant at Dahej. The site, to be operational in 2014, will be an integrated hub for polyurethane manufacturing and will also house production facilities for care chemicals and polymer dispersions for coatings and paper.

September 2012: EPS and Styropor production ceasedThe Board of Directors decide to shut down the expandable polystyrene (EPS) business including the Styropor production plant at Thane, as part of BASF’s global strategy, subject to requisite approval(s).

Now

Today, all global businesses of BASF have a presence in India except for oil and gas. BASF in India maintains excellent performance in environment, health and safety, in line with BASF’s global and internationally accepted standards. Community development activities focus on relief and rehabilitation, women’s empowerment, education and improving governance standards.

Workers at BASF factory

BASF in India

Report 201212

Business and manufacturing update With a partnership that spans more than a century, BASF today has become an integral part of India’s chemical industry. All global businesses of BASF maintain a presence in India except for oil and gas. We have established a strong local presence across India in terms of manufacturing, technical centers, and research and development. By periodically reviewing and aligning our portfolio, together with investment in new projects and facility expansions, we have maintained a strong performance.

Sales and business update This year’s performance was backed by improved synergies between diverse business segments. By seeking to add value as one company, we can explore new market opportunities with existing and new customers, thereby creating innovative products and solutions that can improve people’s quality of life. The approach was supported by business initiatives such as our industry teams, which provide solutions to particular industries based on the broad range of BASF solutions, and by the “Base of Pyramid” project, which focuses on working with our customers to identify new market opportunities from a wider, emerging-income consumer base. For instance: BASF collaborated with Kansai Nerolac to develop a low cost emulsion paint which possesses the qualities of superior emulsion paints even with a lower dosage of dispersion polymers, making it affordable for low-income households. By continuing to invest in local innovation and production, for example with our new Rs. 1,000 crores project in Dahej and facility improvement project in Ankleshwar and Mangalore, we will have even more to offer to our customers in India and help them address the needs of local consumers.

BASF’s largest manufacturing site in India, Mangalore.

BASF in India

BASF in India

In 2012, BASF registered sales of €1.14 billion (2011: €1.2 billion) to customers in India. Sales rose compared to the previous year in local currency terms. Additionally, divestiture of Styrolution in 2011 impacted overall turnover.

As of December 31, 2012, BASF in India has 2,157 employees, nine production sites and two R&D centers that work closely with BASF’s Global Technology platform.

Sales Employees

2,157€1.14 bn

Solutions to meet the needs of India’s growth

BASF in India manufactures polymers, tanning agents, leather chemicals and auxiliaries, crop protection chemicals, textile chemicals, dispersions and specialty chemicals, performance plastics, automotive and industrial coatings, construction chemicals and polyurethane systems. We also market a wide range of intermediates, catalysts and other chemicals for life sciences, chemical and allied industries in the country.

13BASF in India

Report 2012

BASF broke ground at the Dahej project in April 2012. Start of production is planned for 2014.

13BASF in India

Investment of Rs. 1,000 crores in DahejIn April 2012, BASF announced its single largest investment in India. BASF is investing Rs. 1,000 crores (€150 million) in Dahej, Gujarat, to set up an integrated manufacturing facility for the production of polyurethanes, care chemicals and polymer dispersions. The investment will enable BASF ensure local supplies for growing markets and industries such as appliances, footwear, automotive, construction, adhesives, architectural coatings, paper and personal care. The site enjoys close proximity to customers, raw materials and transport linkages. Additionally, it will help expand BASF’s manufacturing footprint across India and strengthen our existing market position in the important northern and western regions of India. Scheduled to commence production by 2014, the Dahej site employs advanced design and latest technologies from BASF facilities around the world to ensure safe, efficient and responsible operations.

Rs. 78,237 million

€1.14 billion (At the exchange rate of €1 = Rs. 68.62947 as on December 31, 2012)

(by location of customers)

Technical experts stack test specimens for review and analysis at the Coatings Technical Support Lab in Mangalore.

Discontinuing Styropor® production in IndiaWith an eye on future developments and the market growth, BASF has decided to discontinue the production of Styropor® in India. This decision is part of BASF’s global restructuring plans for the expandable polystyrene business, to remain competitive in the long-run.

New Coatings Technical Support Lab Taking another stride towards developing India as an international competence center, BASF set up a new Technical Support Lab in Mangalore for its coatings business. The new facility will support lab activities including product development, analytical and physical testing, certification and new pigment qualification, catering to coatings customers of BASF in India as well as globally. It will further support the core competencies of BASF’s coatings business in India and cater to the fast-growing automotive business segment.

Sales performance of BASF in India in 2012 Sales - BASF in India (in million €)

2012 1,140

2011 1,158

2010 1,007

2009 687

2008 693

BASF in India

Report 20121414

Research and Development in India

BASF in India has two research and development centers working closely with BASF’s global technology platform, as well as several technical labs which focus on developing tailor-made solutions to meet current market demand, based on consumers’ needs across sectors. The focus is on developing innovative products and offerings, which can minimize environmental impact, improve food and nutritional value and in general promote a better quality of life.

BASF in India

The Research and Development team working in the Organic Synthesis Lab in Mumbai, India on projects which are carried out in close collaboration with the technology platforms of BASF as well as with researchers in Germany, USA and Basel

15BASF in India

Report 2012

BASF India reaffirmed its commitment to grow in the Indian construction industry with the inauguration of its new Construction Technology Center in Mumbai in August 2012. This facility is the first-of-its-kind in South Asia and will complement existing concrete labs.

BASF in India

Construction chemicals for sustainable urbanization

The need for improvement in infrastructure, urbanization and industrialization will drive future growth of the construction industry. Advanced construction chemicals hold the potential to balance commercial success with environmental and social benefit by improving energy efficiency, durability and speed of construction projects. Construction chemicals solutions include concrete admixtures, cement additives, waterproofing, flooring systems, precision grouts, concrete repair and protection products, among others.

BASF in India

Report 2012Strategic areas1616

In 2050, around nine billion people will live on this planet. On one hand, this population growth is associated with enormous global challenges but we also see many opportunities, especially for the chemical industry. We expect the chemical industry to grow particularly strongly in the emerging economies, and that these markets will account for around 60% of global chemical production by 2020. Innovations based on chemistry will play a key role in three areas in particular:

Resources, environment and climateDramatically rising energy demand is one of the world’s most pressing challenges. In addition, access to clean water and other non-renewable resources is becoming increasingly important.

Food and nutritionA growing world population obviously needs correspondingly more food. And it will be necessary to enhance nutrition quality.

Quality of lifePopulation growth and globalization present further challenges. Aspirations differ greatly from region to region and among different social groups, but there is a common ambition: people want to improve their individual quality of life.

BASF’s products and solutions will contribute to conserving resources, ensuring healthy food and nutrition, and improving quality of life. Sustainability and innovation will be significant driving forces.

Strategic areasOverview

Resources, environment and climate

Food and nutrition

Quality of life

We create chemistry for a sustainable future

We combine economic success, social responsibility and environmental protection. Through science and innovation, we enable our customers in almost all industries to meet the current and future needs of society.

17BASF in India

Report 2012 Strategic areas

In a developing nation like India, waste management is an area of concern, including household waste, organic waste, industrial waste and wastewater.

BASF has been involved in projects worldwide to demonstrate the potential of composting as a feasible and effective waste management option for organic waste, as well as solutions for conservation of water and treatment of industrial wastewater.

Biodegradable plastics for eco-friendly treatment of organic wasteSource-separation of household organic waste, its collection and transportation are key to household waste management. Waste bags made of fully biodegradable, certified compostable plastic can make collection of organic waste more hygienic and convenient, as they are tear-resistant and provide a barrier to odors. BASF, in partnership with Pune Municipal Corporation, launched a pilot composting project in two residential complexes, on the occasion of World Environment Day in 2012. We undertook an extensive engagement drive that included educating households on the importance of source-separation, distribution of certified compostable and fully biodegradable bags made of BASF’s ecovio®, and collection of the organic waste from the households and transporting it to an organic waste processing facility, with support from the Pune Municipal Corporation. At the facility, these bags were processed in special compost pits along with layers of soil for biodegradation by microorganisms. The biodegradation of the bags is facilitated by the way they are made: by mixing polyester enzymes from crude oil, corn starch and other renewable raw materials, which can easily be consumed by soil bacteria and converted into biomass. Overall it takes approximately 180 days for the organic waste and the plastic bag to completely decompose and become part of the soil.

Water solutions for Tamil Nadu Treatment of waste, especially industrial waste water, is a critical industry demand. BASF has an extensive water portfolio, covering solutions that facilitate treatment of raw, sewage and industrial water. In the industrial sector, BASF’s water solutions include flocculants and coagulants. BASF supported the vision of Tamil Nadu government to maximize the re-use of the water treated in the effluent treatment plant of Tamil Nadu’s leading paper mill. BASF replaced the conventional product in their clarification system with Zetag® 8125. Used during solid-liquid separation, the high molecular weight cationic polyelectrolytes of this product clarify the effluents for discharge or recycling purposes. The improved clarity of the treated water has helped minimize the usage of fresh water and enabled effective reutilization of waste water.

Resources, environment and climateEnergy efficiency through chemistry

Biodegradable plastic bags made of ecoflex® and ecovio® for source-separation of organic waste in household.

Environmentally-friendly noise reduction at Infosys

Basotect® is used at the Infosys Chennai campus cafeteria to reduce noise levels which otherwise could reach 90 db, equivalent to a busy street. Fiber-free, durable, and with excellent thermal insulation properties, Basotect® also reduces energy needed for cooling and heating, helping support Infosys’ vision to become carbon-neutral by 2017.

The campus cafeteria of Infosys Chennai.

BASF in India

Report 2012Strategic areas18

Addressing nutritional deficiencies with food fortificationVitamin A deficiency is an area of concern for South Asia, which has the world’s largest undernourished population. In India alone, 60 million children suffer from malnutrition. Deficiency of Vitamin A, iodine, iron and other micronutrients can lead to goiter, night blindness, anemia and cognitive disorders and can hamper the growth of children. Food fortification programs supported at national and state levels become an integral tool to tackle nutritional deficiencies. BASF manufactures Vitamin A, which, upon processing along with other micronutrients, is used in premixes for food fortification. These are used to create fortified oil, flour and dals, and are also distributed as sachets in schools along with the midday meal to make fortified rice curry. BASF partners with leading NGOs and international organizations to deliver fortified solutions to support the state and the central government’s food fortification programs, helping ensure consistency and quality in food fortification. In the oil fortification project initiated by various state governments, BASF supplies Vitamin A to the premixer, who develops a blend that can be added by millers to create fortified oil. BASF is also in advanced stages of discussion for solutions to create fortified pulses, flour and dal for regions across India. By addressing Vitamin A deficiency, BASF is offering support towards the Millennium Development Goals of the South Asian countries.

Broader range of Omega-3 productsWith the recent global acquisitions of Equateq Ltd., now BASF Pharma (Callanish), and Pronova BioPharma ASA, BASF has broadened its range of Omega-3 products for the human nutrition and pharmaceutical industries and is now one of the leading players in the Omega-3 market. The proven benefits of this fatty acid are valuable for consumers at all stages of life.

Orally disintegrating tablets Pharmaceutical companies face a challenge to address the needs of patients who are reluctant to take medicines that are difficult to swallow, require water to ingest, or are tasting bitter. This challenge can be effectively tackled by Orally Disintegrating Tablets (ODTs). Designed to dissolve in the patient’s mouth, these tablets are preferred by children and the elderly.

Food and nutrition Supporting a healthier India

Orally disintegrating tablets dissolve in the patient’s mouth without the need for water.

BASF supplies Vitamin A, which upon processing along with other micronutrients, forms part of fortified food.

Tablets that dissolve without water

BASF offers a comprehensive set of excipients that can be used by the pharmaceutical industry to make their drugs and develop them into effective ODTs. BASF is actively promoting the benefits of ODTs to the Indian market, contributing to better health and quick recovery.

19

The mass housing project at Bangalore

19BASF in India

Report 2012 Strategic areas

The increasing population and aspirations for an improved standard of living have resulted in increased demand for new concepts in housing and construction, infrastructure, energy and mobility. BASF is making significant progress in addressing these challenges by providing economically and ecologically sound solutions that contribute to modern, comfortable and sustainable housing and construction by lowering energy consumption, increasing building life expectancy and offering a faster construction process.

In 2012, we made notable contributions to the fields of mass housing and hydroelectricity with our innovative product, Smart Dynamic ConcreteTM, a flowable concrete admixture.

Concrete makes hydro project successful Smart Dynamic ConcreteTM was applied in the construction of the 99 MW Chuzachen Hydro Project, commissioned by the government to provide electricity to the interiors of Sikkim. The project required river water to pass through three different tunnels to reach the turbines and generate electricity. These tunnels needed a thick lining of concrete to withstand the tremendous water pressure. The project was delayed since the diameter of the tunnels was too small for conventional concrete placement. BASF partnered with Gati Infrastructures to address this problem by replacing conventional concrete with Smart Dynamic ConcreteTM . The concrete was able to be pumped over a distance of 2,200 meters with a single stage pump. This is the first case of long distance pumping of concrete for tunnel lining within South Asia. The project started producing electricity in February 2013, improving the quality of life for over a million people in Sikkim.

Concrete solutions for mass housingBASF supports the mass housing segment by addressing the key constraints of participants across the construction value chain. It is evident that for such projects, the tenure of project completion, the shortage of skilled labor and need for quality finishing can lead to rising costs and inevitable delays. Smart Dynamic ConcreteTM can also help address these issues. It allows concrete to assume the shape of the formwork without the need of vibration or manual labor, which in turn brings down the overall cost by achieving project tenure efficiencies. It also substantially reduces the use of resources like fuel and water. This technology today has been applied in 22 mass housing projects in Mumbai, Hyderabad, Delhi, Pune and Vapi, which are expected to benefit over 50,000 families.

Quality of lifeAdding value to infrastructure and housing sector

Smart Dynamic ConcreteTM is an integral part of several mass housing projects across India, benefiting over 50,000 families.

Housing for low-income families

BASF’s sustainable construction solutions at the Bangalore Mass Housing project will help create 6,000 residences for low-income families.

BASF in India

Report 201220

Environment, health and safetyGrowing responsibly

At BASF, economic considerations do not take priority over environment, health, safety and security. As a global signatory to Responsible Care, we aim to reduce risk, enhance management processes and drive continual performance improvement. The implementation of Responsible Care guidelines helps create considerable value for the company’s stakeholders and the future generation. It provides a safer, healthier workplace for employees and communities, stewardship of materials and products in commerce, efficient and secure supply chain processes for customers and improved profitability for shareholders.

With the introduction of a new directive for energy under the Responsible Care Management System, BASF has set ambitious goals in the area of energy management. BASF in India contributes towards fulfillment of these targets via several measures adapted to improve efficiencies in manufacturing operations and also by being part of industry forums that conceptualize new projects to promote improvement in Emergency Response, and Transportation and Distribution Safety.

Product stewardshipFor us, product stewardship does not end at our factory gates. We consistently review and monitor to ensure the safety of our

Environment, health and safety

Transportation and Distribution Safety

At the Mangalore site, like at any other manufacturing location across the world, hundreds of vehicles enter and leave the site premises, carrying a variety of raw materials and finished goods. A robust transportation and distribution safety system, including policy, training and audits, helps ensure a sound safety culture.

BASF celebrated Global Safety Week from September 10 -14, 2012, to demonstrate how employees can work more safely and avoid risks. In India, games, engagement activities and training programs were organized to encourage deeper involvement

Monitoring the safety of our products across the entire value chain.

21BASF in India

Report 2012

products along the entire value chain – from raw materials suppliers to the production sites of our customers. We adhere and comply with national as well as international legislations. In support of India’s efforts in product stewardship, BASF actively participates in the National Chemical Inventory Regulation Committee and helps educate small and medium scale industries on best practices. In 2012, BASF presented its Global Product Strategy, in line with the Responsible Care guidelines, at the Indian Chemical Council workshop. Ensuring strict adherence to relevant legal and statutory requirements, the Trade Compliance program is now extended to cover and monitor local regulations, which was earlier confined to global regulations only.

Transportation and Distribution Safety (TDS)The TDS team at BASF India launched major initiatives in 2012 with the clear objective to enhance safety awareness and improve processes in transportation-related operations. BASF has adopted the European Chemical Industry Council’s Safety and Quality Assessment System for road transportation of bulk and packaged goods. This system evaluates the quality, safety and environmental performance of logistics service providers. We set targets for our local service providers to ensure that they comply with local as well as BASF requirements, which are internationally accepted. Parameters such as the type of vehicle used for transportation and its complete specifications are reviewed. Upon non-compliance, stringent measures are adopted, including termination of the contract with the logistics service provider who do not meet the required safety standards. To further upgrade safety awareness among service providers, a series of workshops and training sessions were organized in 2012. Training courses were held for drivers of vehicles carrying hazardous goods in collaboration with Indian Chemical Council and a Behavior Based Safety Workshop for transport operators with expert faculty from British Safety Services, UK. Going forward, the focus is on increasing the number of vehicles to be covered under the Global Positioning System

Environment, health and safety

facility, under which vehicles are monitored around the clock by the BASF Disaster Control Center for violations related to speed, night driving and other safety alerts. While earlier restricted to vehicles carrying hazardous goods, this facility is now being evaluated to cover vehicles carrying packaged goods as well.

Occupational SafetyUnder Occupational Safety, we focus on providing a safe working environment in our plants, laboratories and offices. The overall Lost Time Injury Rate for BASF in India for 2012 is 0.6 (2011: 0.5), which is below BASF’s global target. BASF held several training programs in India on the topics of work permit systems, incident reporting, usage of personal protective equipment, and hazard identification and risk assessment. Training was also offered to our customers on safety-related topics. Safety inspections were conducted at periodic intervals at plants, office locations and construction sites for improving existing safety standards. For the first time, in 2012, hotel fire safety cards, consisting of precautionary instructions were distributed among our employees. A construction safety manual for BASF in India was released in light of growing construction activities. It includes information on safety measures to be adopted by employees as well as contractors on site. A respiratory protection guide was published and distributed for users of respiratory personal protective equipment. In September 2012, we conducted the BASF Global Safety Week in India to further improve safety awareness among employees and demonstrate our commitment to safety at the workplace and outside the office.

2012 0.6

2011 0.5

2010 0.3

2009 0.7

2008 0.7

Lost time injury rate - BASF employees(per million working hours)

2012 0.4

2011 0

2010 0.4

2009 1.1

2008 0.6

Lost time injury rate - contractors(per million working hours)

BASF in India

Report 201222

Occupational healthPrevention is the essential factor in all our environment, health and safety activities. Meeting this company guideline, BASF holds routine medical checkups and health awareness lectures for employees in India. In addition, new requirements for medical emergency preparedness and emergency response were introduced across the country in 2012. Substantial focus was also placed on industrial hygiene. External consultants and regional experts carried out gap assessments and identified areas to be acted upon in the coming year. Furthermore, to educate our employees on health conscious management of noise sources, BASF offered a health promotion campaign for hearing protection at more than 400 sites worldwide in 2012, including sites in India. This included hearing tests for the early identification of hearing impairments.

Process safetyBASF carries out an extensive review system for the planning and construction of new chemical plants to protect employees, site neighbors and the environment. All proposed investments in India undergo a thorough environment, health and safety review. Over and above the mandatory requirements introduced internally in 2011, Clean Sheet reviews are also mandated for existing plants, wherein reviews and audits of existing plants are conducted on a periodic basis, in line with the most updated local and international safety standards. A system to help manage change was also upgraded in order to build up the competencies of the site coordinators in implementing new or enhanced process safety measures. A training matrix, comprising training requirements based on job profile, was also introduced in 2012, to ensure improved safety awareness and process safety. The process will be further implemented in 2013.

Environment, health and safety

Responsible Care management at BASF in India

Performance in environment, health and safety is monitored by BASF under the Responsible Care Management System, which is the internationally accepted benchmark for evaluation of EHS standards. The Responsible Care group in India is guided by the Chairman of BASF Group in India and headed by the Chief Executive – Manufacturing, in coordination with the Responsible Care team for BASF in India.

With regular internal and external safety audits, BASF ensures strict adherence to local and internationally accepted EHS standards worldwide.

In 2012, employees in India participated in BASF’s global sound check campaign, which focused on hearing tests to detect early hearing impairments.

23BASF in India

Report 2012

EnergyThe most important means of reducing our energy consumption and thereby lowering emissions is energy efficiency, which is defined as primary energy consumption (fuel, electricity, steam) per ton of product. Steam and electricity consumption in 2012 decreased by 5% to 62,819 metric tons, and 9% to 35,064 metric tons respectively as compared to 2011, as Styrolution is not included in the reporting. However, fuel consumption increased by 2% to 62,186 metric tons due to the inconsistent power supply at Chennai and the resultant use of diesel generators to ensure the required power supply.

Emissions to airCO2 emissions constitute a major portion of the greenhouse gas emissions. In 2012, emissions of greenhouse gases from chemical operations of BASF in India amounted to 51,497 metric tons, as compared to 59,219 metric tons in 2011. In 2012, emissions of air pollutants from chemical operations of BASF in India amounted to 198 metric tons, in contrast to 327 metric tons in 2011. These reductions were due to a change-over of fuel at Thane from furnace oil to natural gas for the spray dryer and thermic fluid heater. Additionally, as of 2012, the joint venture Styrolution is not included in the reporting.

Environment, health and safety

Global corporate carbon footprint

BASF is the only industrial company worldwide to have published a comprehensive corporate carbon footprint since 2008, based on continuously updated calculation methods. Global prevention of greenhouse gas emissions through the use of BASF products amounted to 320 million metric tons of CO2 equivalents.

1 Housing and construction 269

2 Industry 30

3 Transport 8

4 Agriculture 4

5 Other 9

1

320million

metric tons

23 54

Fuel for central energy supply (MWh)

2012 62,186

2011 61,196

2010 64,675

2009 54,499

2008 46,462

Electricity supply (total) (MWh)

2012 35,064

2011 38,536

2010 40,138

2009 36,149

2008 30,277

Steam supply (Metric tons)

2012 62,819

2011 65,823

2010 67,289

2009 64,529

2008 48,467

Greenhouse gas emissions (total) (Metric tons of CO2 equivalents 1)

2012 51,497

2011 59,219

2010 65,667

2009 54,317

2008 44,560

¹ CO2, N2O, CH4, HFC, PFC, SF6

Air pollutants (total) ¹ (Metric tons)

2012 198

2011 327

2010 467

2009 490

2008 534

¹ CO, NOx, NMVOC, SOx, dust, NH3/other inorganics

Emissions to water (total): Organic substances (COD) (Metric tons)

2012 56

2011 49

2010 51

2009 46

2008 57

Water supply (total) (Cubic meters)

2012 704,115

2011 715,672

2010 719,141

2009 637,008

2008 570,619

Emissions to water (total): Nitrogen (Metric tons)

2012 0.26

2011 2.00

2010 1.70

2009 1.52

2008 2.08

BASF in India

Report 201224

Water supplyIn 2012, BASF in India used 704,115 cubic meters of water similar to previous year (2011: 715,672 cubic meters). This number is reported as water supply.

Of the 704,115 cubic meters of water used, 460,698 cubic meters (2011: 433,416 cubic meters) were used for production. This was an increase from 2011 as water-based dyes production started in Ankleshwar. The remaining water was principally used for cooling and was re-circulated to save actual water consumption. In 2012, 21,719,872 cubic meters of water were used for cooling (2011: 24,025,407 cubic meters), including both actual water used and re-circulated water.

Emissions of organic substances to water (measured as COD – Chemical Oxygen Demand), amounted to 56 metric tons in 2012 (2011: 49 metric tons). The increase is due to trials conducted at Mangalore on alternate technologies. The quality of the treated effluent was well within regulatory limits. Emissions of nitrogen to water were about 0.26 metric tons (2011: 2 metric tons). The reduction in nitrogen emission to water was due to

Training improves safety

C.A.R.E. stands for four areas which are crucial for improving safety: Communication about safety issues, Awareness of risks, Responsibility for a safe working environment and Excellence in safe behavior. Employees throughout BASF in India are continuously receiving training about C.A.R.E.

Emissions to water (total): Heavy metals (Metric tons)

2012 0.08

2011 0.10

2010 0.13

2009 0.13

2008 0.14

Environment, health and safety

Water used for production (total) (Cubic meters)

2012 460,698

2011 433,416

2010 443,625

2009 303,553

2008 176,821

the discontinuation of a particular product line in Thane and improved efficiencies at the textile auxiliaries’ plant, leading to reduced washing of vessels. The emissions to water of heavy metals were 0.08 metric tons (2011: 0.1 metric tons).

Safety message promoted by the C.A.R.E. mascot

25BASF in India

Report 2012

WasteIn 2012, BASF in India generated 5,809 metric tons of waste (2011: 5,773 metric tons). In 2012, recycled waste recovery was 4,402 metric tons (2011: 4,387 metric tons) while the recovery rate remained at 76%, the same as the previous year. Data for recycling of waste is available starting from 2009.

Emergency response and crisis managementBASF in India has a well-rehearsed on-site and off-site emergency incident and crisis management plan. To augment this global process, we have entered into a worldwide contract with global emergency response expert, ALERT SGS, in the areas of emergency response, industrial firefighting and hazardous material control. Having strengthened the onsite chemical emergency response, the teams have now coordinated with various industries and forums to build capacity in India for effective transport chemical emergency response. With rich global experience and expertise in this domain, we have initiated an industry-wide drive to enable the chemical industry in India to establish globally recognized standards, infrastructure and

services for safe and secure transportation. The Indian Chemical Council (ICC), under the “Nicer Globe” initiative, is dedicated to establishing standards, fostering cooperation and collaboration within the industry, enabling emergency response infrastructure and services, and routinely evaluating and improving transport safety capabilities to enhance the local community’s relationship with the chemical industry. BASF actively participates in the efforts of the ICC.

Security and information protectionInformation protection, fraud and risk management, and business continuity are an important part of corporate security. Ongoing training of employees in information protection at all manufacturing sites and major office locations of BASF in India continued in 2012. Employees were given insights into everyday work practices that help protect crucial company information through interactive sessions. Information protection officers commenced implementation of minimum requirements at their respective sites.

Mock drills

Regular mock drills at our production sites keep the team ready and geared to take corrective action if the need arises.

Total amount of waste (Metric tons)

2012 5,809

2011 5,773

2010 5,675

2009 4,663

2008 2,108

Environment, health and safety

Recycling of waste (total) and recycling rate (Metric tons) (Recycling rate %)

2012 4,402

2011 4,387

2010 2,683

2009 1,700

76%

76%

47%

36%

Mock drill underway at production site.

BASF in India

Report 201226

The significance of India within the emerging markets is growing strongly. This is echoed in BASF’s growth plans. Employee development is an integral part of this growth. BASF’s Employee Development Program nurtures existing talent, thus motivating and empowering employees at the workplace to take up new roles and responsibilities. In 2012, the Global Employee Survey continued to be an important channel to initiate dialog between employees and management. Together, we were able to identify areas to improve the working environment. Employees awarded high scores to BASF in areas such as the importance it places on safety. Several employees felt that improvements could be made in the areas of employee development, work-life balance, change management and innovations. Based on these findings, several initiatives were undertaken to connect, engage and interact with employees and their families during the course of the year. BASF also aims to improve diversity and inclusion to take advantage of the skills of employees from a variety of backgrounds and age groups. The largest age group of employees at BASF in India in 2012 was the 26-39 age group, the same as in 2011.

Knowledge access through e-library BASF is committed to the philosophy of life-long learning and development. In association with librarywala.com, in 2012, BASF launched an online circulating library in India supporting the personal and professional development of employees. The e-library has a collection of books on subjects ranging from business, management, biographies, history, current affairs and fiction.

Forming the Best TeamAs of December 31, 2012, BASF employed 2,157 people in India (2011: 2070). BASF continued to recruit and inspire talent in India with a variety of engagement initiatives in 2012. Through the “Grow” program, new trainees are exposed to the businesses, customer industries, growth drivers and decision makers at BASF. This induction module enables trainees to prepare for business leadership roles. This year, young managers participated in an interactive session with Dr. Martin Brudermüller, Vice Chairman of the Board of Executive Directors, BASF SE responsible for Asia Pacific. The discussion focused on integrating BASF’s C.O.R.E. (Creative, Open, Responsible and Entrepreneurial) values into the day-to-day work culture. Further, the biannual initiative “Chat with the Leader” ensured senior management’s interaction with young talent, with a first-hand exchange of ideas on BASF’s long-term growth plans and strategy.

Women@BASF In 2012, BASF held further activities in India to empower female employees via the professional network, “Women@BASF”, which was first introduced in 2011. This platform equips women with the necessary tools to develop professionally and achieve a better work-life balance, with an aim to provide opportunities for female employees to hold responsible leadership positions at BASF. For example, a workshop was held by Dale Carnegie Training, India, to help understand the importance and meaning of empowerment and how it is connected to daily professional and personal lives. Supporting the fight against cancer, the Women@BASF team participated in the Pinkathon International Women’s Run.

EmployeesOur most powerful asset

Employees

Number of employees (as of December 31)

2012 2,157

2011 2,070

2010 1,830

2009 1,810

2008 1,370

Up to and including 25 years 7.3%

Between 26 and 39 years 55.3%

Between 40 and 54 years 32.5%

55 years and older 4.9%

Employee age structure (proportion of employees as of 2012)

27BASF in India

Report 2012 Employees

BASF helps equip women with the necessary tools to develop professionally and achieve a better work-life balance.

BASF participated in Mumbai marathon supporting Muktangan, an NGO working towards introducing educational reforms in India.

Family day events were organized in various cities.

Employees in India volunteered and donated gifts for kids associated with Muktangan on the occasion of the New Year.

Balancing work with recreation

Employees are driving the success of BASF and we place great emphasis on employee engagement through recreation. Fun activities involving employees and their families were held throughout the year. Festivals and special events were celebrated with great enthusiasm. Workshops on chocolate making and arts and crafts received tremendous response from employees and their spouses. BASF employees also participated in the Ganpati contest, which focused on encouraging employees to get eco-friendly Ganesh idols at home, to prevent water pollution.

BASF in India

Report 2012Society28

BASF’s corporate purpose is: We create chemistry for a sustainable future. We understand sustainability as the balance between economy, ecology, and society. Our social activities are therefore centered on topics which are relevant to the country’s development in all three dimensions. Accordingly, we have identified two focus areas. They highlight our community development initiatives and demonstrate how we make a difference with our intellectual, financial and human resources.

With our first project, ‘‘Sadbhavana (empathy)’’, we strive for community development initiatives with an emphasis on relief and rehabilitation for victims of natural disasters, women empowerment, as well as education-led activities for children. Our second project, ‘‘Million Minds’’, is a unique program that aims to improve governance standards by focusing on the “giver”, who contributes to the act of corruption. Seminar series and other initiatives are held to encourage the citizens to take a firm stand against corruption. Every year, BASF employees and volunteers continue to achieve the annual objectives of these projects.

Disability Resource Center in Cuddalore, Tamil NaduUnder the “Sadbhavana” project, BASF provides support that reaches beyond immediate disaster relief efforts. In 2004, the state of Tamil Nadu was devastated by a tsunami. BASF responded to this natural disaster by providing relief and rehabilitation support to the inhabitants of the disaster affected regions where aid could not reach. This post-tsunami initiative, funded by BASF Stiftung has been undertaken to alleviate the pressing problems of the local communities, especially the disabled, who are the most vulnerable section of the society.

Society Bringing change, touching lives

Installation of hand pumps at Cuddalore

As part of the relief and rehabilitation efforts at Cuddalore, 74 hand pumps and 5 community water supply systems were installed and handed over to the community members to give them better access to water for drinking and sanitation.

A representative from the community and member of the DRC shares his aspiration to earn an MBA, at the inaugural ceremony in Cuddalore.

In March 2012, BASF in association with UN-HABITAT and implementation partner Leonard Cheshire Disability inaugurated a Disability Resource Center in the Cuddalore district of Tamil Nadu. This center aims to benefit and touch the lives of over 2,000 people with disabilities. Equipped with orthopedic, speech and physiotherapy facilities, it is expected to support people with disabilities and provide them with a platform to come together, engage in productive activities, learn and share. To sustain its effort in the long run, the center will cooperate closely with the local and state governments, other development organizations working on disabilities, and mainstream issues, health and education service providers and various micro-finance institutions. The current committee that oversees the management of the center is comprised of representatives from the community, including persons with disabilities.

The inauguration ceremony of the hand pump.

29BASF in India

Report 2012 Society

Students at Jilla Panchayat Higher Primary School, Mangalore learn water-quality testing techniques from their teacher.

Water Education Project progresses in MangaloreAlso part of the “Sadbhavana” initiative, BASF’s Water Education Project continued to make progress in 2012. The project was launched in 2011, in partnership with UN-HABITAT and implemented by The Energy and Resources Institute. BASF Stiftung is the sponsor of the project. Currently, water laboratories have been set up in eight nodal schools and two water classrooms will be launched by July 2013. The project targets 5,000 students from 25 schools in Mangalore, and aims to promote water education by imparting education on handling water responsibly. These well-equipped laboratories will enable students and teachers to test drinking water quality in strategic locations and selected communities in the city of Mangalore and surrounding areas. In the long run, through this project and the water laboratories, BASF aims to empower communities which have no access to safe drinking water with adequate measures to conserve water and minimize water-borne diseases.

Seminar series on corporate governanceAs a part of the “Million Minds” project, BASF focuses on fighting corruption in India by sensitizing at least a million Indian citizens against the cancer of corruption. This includes a seminar series on corporate governance and business ethics that runs at educational institutes. Since the program’s inception in 2007, BASF has partnered with HR College, SIES College of Management Studies, and the Indo-German Training Center, to train more than 300 students on good governance practices as well as the practical aspects of governance and ethical issues. This 30-hour study course comprises of lectures, training, seminar and case studies that address corporate governance in India as well as ethical dilemmas at workplace. Promoting Good Governance at an industry level The Bombay Chamber of Commerce invited Mumbai’s business community in 2012 to present its views on the trends emerging out of the analysis of companies indicted of corruption and fraud in India in the last 15 years. Under the “Million Minds” project, BASF leaders use business networks like this one to encourage other companies to also focus on the giver in the act of corruption, and to raise governance standards, through which the risk of fraud and fraudulent practices can be minimized.

Felicitating young change-makers

BASF felicitates students who have successfully completed the seminar series on corporate governance and business ethics during the convocation ceremony at the Indo-German Training Center at Mumbai.

The convocation ceremony at the Indo-German Training Center.

BASF in India

Report 2012Year of Germany in India

BASF was the official partner of the Year of Germany in India. Celebrating their close ties, India and Germany came together under the aegis of “Germany and India 2011-2012: Infinite Opportunities”. This five-city, 17-month program highlighted the mutually beneficial opportunities of close cooperation in business, research, education, art and culture among the two nations.

The centerpiece of the Year of Germany in India was the Indo-German Urban Mela, a hi-tech mobile pavilion that highlighted the implications of rapid urbanization. As the official partner, BASF showcased its innovations and ideas that can help address these future global challenges. BASF created chemistry with its stakeholders – customers, employees, government representatives, scientists, locals and the student community – at the Indo-German Urban Mela, through a pavilion that exhibited our world-class innovations and advancements in the areas of mobility, health and nutrition, and construction. We demonstrated how chemistry acts as an enabler in addressing future global challenges faced by mankind, through science and innovation. We also featured BASF Kids’ Lab, our global chemistry education program that focuses on generating interest in chemistry among school children. Travelling the length and breadth of the country, the initiative made stops at India’s top metropolitan areas – Mumbai, Bangalore, Chennai, Delhi and Pune – and connected with over 125,000 people all across India.

Year of Germany in India Connecting nations

The BASF pavilion at the Indo-German Urban Mela showcased innovations in the area of mobility, food and nutrition, and construction.

A special session of BASF Kids’ Lab was held for differently abled children in Bangalore.

smart forvision concept car for sustainable mobility

The BASF pavilion at the Indo-German Urban Mela in Delhi showcased the smart forvision for the very first time in India. This concept car, jointly developed with Daimler AG, uses 25 innovative technologies from BASF. The solutions range from innovations that make the car lighter to improving temperature management, increasing energy-efficiency and comfortable seating foams.

BASF Kids’ Lab

BASF Kids’ Lab inspired more than 8,400 kids with the magic of chemistry through hands-on experiment during the course of the Year of Germany in India. It focused on water-related experiments to explain the role of chemistry in water purification and water quality enhancement. This is the first time that these water experiments were conducted in India.

30

31

BASF officials and local industry leaders discussed opportunities for cooperation during the Year of Germany in India.

Employees’ families participated in the “We create chemistry” awards, presenting ideas for innovations to help conserve natural resources.

Industry-academia initiatives fostered exchange of ideas on possible research topics to augment growth of chemical industry.

BASF brought government officials, activists and experts together to discuss challenges and solutions in sustainable construction.

VIPs visit the Indo-German Urban Mela

Visitors to the Mela included D. V. Sadananda Gowda, former Chief Minister of Karnataka; Mr. Praful Patel, Union Minister, Heavy Industries and Public Enterprises; Bollywood star Sushmita Sen; Michael Steiner, Ambassador of the Federal Republic of Germany; Dr. Philipp Rösler, German Federal Minister of Economics and Technology; Heiko Sievers, Director Goethe Institut, MMB South Asia and Head of Project Management, Germany and India 2011-2012.

Creating chemistry with our employees

Employees are our most important stakeholders. During the course of the year, we created chemistry with employees and their family members by holding celebrations to coincide with the arrival of the Indo-German Urban Mela in the five metropolitan cities.

BASF in India

Report 2012 Year of Germany in India

Mr. Prasad Chandran speaking at the Emerging Kerala 2012 – Global Connect event.

Scholarship program for underprivileged students

Promoting children’s education is an important part of our community development activities. In 2012, we held a scholarship program offering scholarships to merit holding students from 28 government schools in the neighborhood of our manufacturing facility in Mangalore. As the majority of the students in these schools are from poor families, these scholarships will enable them to pursue their dreams to continue higher studies.

BASF in India

Report 2012Education 32

As the world’s leading chemical company – The Chemical Company – we have a responsibility to help shape the future of the chemical industry by sharing our expertise and resources for science education.

Links between industry and academia are crucial to this goal, as joint research and development is the best way to develop new products and services suited to the Indian market environment. BASF also seeks to promote chemical education and build the talent pipeline. To this end, BASF made significant progress in 2012.

Generating interest in chemistryOn the occasion of World Environment Day 2012, BASF held an inter-school essay competition to inspire young people to take up chemistry education by generating awareness on how it helps improve our day-to-day lives. Involving students from 21 public and private schools, including the schools participating in the BASF Water Education project, the competition required children to present their views on the topic “Save Water, Save Earth”. The winners were recognized in a special award ceremony, organized during the Bangalore stop of the Indo-German Urban Mela.

Promoting sustainable water managementTo explore the implications of rapid urbanization on water and to promote sustainable water management, BASF India conducted a panel discussion in association with The Energy and Resources Institute. Here, we highlighted the role of the chemical industry in water conservation, and BASF’s initiatives towards creating awareness about water and promoting sustainable water management in both urban and industrial spheres. BASF has an extensive portfolio of water treatment chemicals to treat raw water, sea water and industrial wastewater.

EducationInspiring the next generation

BASF’s Mangalore site provided scholarships to 185 students from 28 schools.

BASF India at Emerging Kerala 2012 - Global ConnectWe ensure continuous dialog with our key stakeholders and use a variety of platforms to present our views on topics such as chemistry, technology, and research and development, among others. One such platform was the Emerging Kerala 2012 - Global Connect event organized by Kerala State Industrial Development Corporation. At the forum, BASF, along with leading scientists and chemistry experts, joined the discussion on new emerging technologies and how chemistry can act as an enabler. We demonstrated on how chemical innovations can address future global challenges for resource conservation, improving food and nutritional quality as well as quality of life with innovative products and solutions. Improved relationships between industry and academia were identified as a key to ensure long-term success.

Recognition

In 2012, BASF’s coatings business won the “Best Supplier” award from Renault Nissan India.

BASF’s Mangalore site secured second place in the “Safe Industry Award” category.

BASF’s inorganics business received an “Excellent” rating for its services, documentation and safety from Rallis India Ltd.

BASF scientist Shivram Bagade (second from right) was recognized for innovation in concrete industry.

http://www.bcg.de

BASF is one of the world’s 50 most innovative companies

BASF is one of the 50 most innovative companies in the world in 2012, according to The Boston Consulting Group in their report “The Most Innovative Companies 2012: The State of the Art in Leading Industries”. The report acknowledges BASF’s efforts to develop “systems that combine chemicals, technologies and application know-how”.

33BASF in India

Report 2012 Recognition

BASF in the RegionsSales 2012: €78,729 million; EBIT 2012: €8,976 million

North America

At €14,599 million, sales for companies headquartered in North America were 1% below the level of 2011. In local-currency terms, sales were 8% lower than in the previous year. Income from operations decreased by 27% to €964 million, mostly as a result of the lower contribution from the Chemicals segment.

South America, Africa, Middle East

Compared with 2011, sales for companies in the region rose by 3% to €4,549 million. Sales were 3% above the previous year’s level in local-currency terms, as well. Income from operations in the region declined by 23% to €361 million, predominantly as a result of the lower contribution from the Oil & Gas segment in Argentina.

BASF in India

Report 201234 BASF in the Regions

FreeportGeismar

Antwerp

Florham Park

São Paulo

Singapore

Hong Kong

Ludwigshafen

Nanjing

Regional centers Verbund sitesSelected production sites

Kuantan

Most important research sites

North AmericaSales1 (in million €) EBIT (in million €) Employees2

14,599 964 16,917

South America, Africa, Middle EastSales1 (in million €) EBIT (in million €) Employees2

4,549 361 7,073

Europe

In 2012, companies headquartered in Europe recorded a significant increase in sales compared with the strong previous year: Sales grew by 11% to €45,665 million. Income from operations amounted to €6,746 million, an improvement of 19% compared with 2011.

Asia Pacific

Companies headquartered in the Asia Pacific region increased sales by 5% to €13,916 million in 2012. Positive currency effects boosted sales growth, while lower prices reduced sales. In local-currency terms, sales declined by 3%. Income from operations fell by 20% to €905 million. This was mostly due to weaker margins in the Chemicals segment.

Around 113,000 employees work in the BASF Group toward contributing to the success of our customers from nearly all sectors and almost every country in the world. We operate six Verbund sites as well as approximately 380 additional production sites worldwide.

35BASF in India

Report 2012 BASF in the Regions

EuropeSales1 (in million €) EBIT (in million €) Employees2

45,665 6,746 71,144

FreeportGeismar

Antwerp

Florham Park

São Paulo

Singapore

Hong Kong

Ludwigshafen

Nanjing

Regional centers Verbund sitesSelected production sites

Kuantan

Most important research sites

EuropeSales1 (in million €) EBIT (in million €) Employees2

45,665 6,746 71,144

Asia PacificSales1 (in million €) EBIT (in million €) Employees2

13,916 905 18,128 1 In 2012, by location of company2 At year-end 2012

FreeportGeismar

Antwerp

Florham Park

São Paulo

Singapore

Hong Kong

Ludwigshafen

Nanjing

Regional centers Verbund sitesSelected production sites

Kuantan

Most important research sites

BASF in India

Report 201236

BASF Group Summary

BASF Group Summary

Million € 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Sales and earnings1

Sales 33,361 37,537 42,745 52,610 57,951 62,304 50,693 63,873 73,497 78,729

Income from operations before depreciation and amortization (EBITDA)

5,110

7,685

8,233

9,723

10,225 9,562

7,388

11,131

11,993 12,516

Income from operations (EBIT) 2,658 5,193 5,830 6,750 7,316 6,463 3,677 7,761 8,586 8,976

Income before taxes 2,168 4,347 5,926 6,527 6,935 5,976 3,079 7,373 8,970 8,436

Income before minority interests 976 2,133 3,168 3,466 4,325 3,305 1,655 5,074 6,603 5,222

Net income 910 2,004 3,007 3,215 4,065 2,912 1,410 4,557 6,188 4,879

Capital expenditures, depreciation and amortization1

Additions to property, plant and equipment and intangible assets

3,415

2,163

2,523

10,039

4,425 3,634

5,972

5,304

3,646 5,397

Thereof property, plant and equipment 2,293 2,022 2,188 4,068 2,564 2,809 4,126 3,294 3,199 4,215

Depreciation and amortization of property, plant and equipment and intangible assets

2,452

2,492

2,403

2,973

2,909 3,099

3,711

3,370 3,407 3,540

Thereof property, plant and equipment 1,951 2,053 2,035 2,482 2,294 2,481 2,614 2,667 2,618 2,850

Number of employees

At year-end 87,159 81,955 80,945 95,247 95,175 96,924 104,779 109,140 111,141 113,262

Annual average 88,167 85,022 80,992 88,160 94,893 95,885 103,612 104,043 110,403 112,388

Personnel expenses1 5,891 5,615 5,574 6,210 6,648 6,364 7,107 8,228 8,576 9,089

Research and development expenses1 1,105 1,173 1,064 1,277 1,380 1,355 1,398 1,492 1,605 1,746

Key data1

Earnings per share6, 7 € 0.81 1.83 2.87 3.19 4.16 3.13 1.54 4.96 6.74 5.31

Cash provided by operating activities2 4,878 4,634 5,250 3 5,940 5,807 5,023 5,693 6,460 7,105 6,733

EBITDA margin % 15.3 20.5 19.3 18.5 17.6 15.3 14.6 17.4 16.3 15.9

Return on assets % 7.4 13.2 17.7 17.5 16.4 13.5 7.5 14.7 16.1 14.6

Return on equity after tax % 6.0 12.9 18.6 19.2 22.4 17.0 8.9 24.6 27.5 20.4

Appropriation of profits

Net income of BASF SE4 1,103 1,363 1,273 1,951 2,267 2,982 2,176 3,737 3,506 2,880

Transfer to retained earnings4 334 449 – – – – – – – –

Dividend 774 904 1,015 1,484 1,831 1,791 1,561 2,021 2,296 2,388

Dividend per share6 € 0.70 0.85 1.00 1.50 1.95 1.95 1.70 2.20 2.50 2.60

Number of shares as of December 315, 6 million 1,113.3 1,080.9 1,028.8 999.4 956.4 918.5 918.5 918.5 918.5 918.5

1 Since 2005, the accounting and reporting of the BASF Group have been prepared in accordance with International Financial Reporting Standards (IFRS). The previous year’s figures have been restated in accordance with IFRS. The figures for the years up to and including 2003 were prepared according to German GAAP.

2 Includes the change in reporting from 2009 onward of the effects of regular extensions of U.S. dollar hedging transactions.3 Before external financing of pension obligations.4 Calculated in accordance with German GAAP. 5 After deduction of repurchased shares earmarked for cancellation.6 In the second quarter of 2008, we conducted a two-for-one stock split. The previous years’ figures for earnings per share, dividend per share and number of shares

have been adjusted accordingly.7 Adjusted for special items and impairment of intangible assets, earnings per share were €5.71 in 2012 and €6.26 in 2011.

37BASF in India

Report 2012 Connect with BASF

Registered office for BASF Group Companies in India1st Floor, VIBGYOR Towers, Plot No. C - 62, ‘G’ Block, Bandra-Kurla Complex, Mumbai - 400 051, Maharashtra Phone: +91 22 6661 8000 Fax: +91 22 6758 2753

Corporate offices

BASF India LimitedPlot 37, Chandivali Farm Road, Chandivali, Andheri (East), Mumbai - 400 072, MaharashtraPhone: +91 22 2858 0200 Fax: +91 22 2858 0398

BASF India LimitedThane-Belapur Road, Turbhe, Plot No.12, TTC Area, Navi Mumbai - 400 705, MaharashtraPhone: +91 22 6712 7600 Fax: +91 22 6712 7628

BASF Catalysts India Private LimitedE-17 & 18 Industrial Estate, Maraimalainagar - 603 209, Tamil NaduPhone: +91 44 2745 4466 / 4489 Fax: +91 44 2745 4490

Production sites

BASF India LimitedThane-Belapur Road, Turbhe, Plot No.12, TTC Area,Navi Mumbai - 400 705, MaharashtraPhone: +91 22 6712 7600 Fax: +91 22 6712 7628

BASF India LimitedC-68, MIDC, Thane-Belapur Road, Turbhe, Navi Mumbai - 400 613, MaharashtraPhone: +91 22 2761 9992 Fax: +91 22 2761 9242

BASF India LimitedSurathkal Bajpe Road, Bala,Via. Katipalla, Mangalore - 575 030, KarnatakaPhone: +91 824 2237 000 Fax: +91 824 2270 025

BASF India LimitedShed 269B, 3rd Phase, Bommasundra Industrial AreaAnekal Taluka, Bangalore - 560 099, KarnatakaPhone: +91 80 2783 2447 Fax: +91 80 2783 2447

BASF India LimitedUnit I, Plot No. 6214/6216, GIDC Phase IV Ankleshwar - 393 002, Gujarat Phone: +91 2646 221 890 Fax: +91 2646 250 464

Unit II, Plot No. 8001, GIDC Phase VIAnkleshwar - 393 002, GujaratPhone: +91 2646 617 452 Fax: +91 2646 238 039

BASF India LimitedGate No. 3, Jalan Industrial Complex,Jangalpur, Howrah - 711 411, West BengalPhone: +91 33 3248 7499 Fax: +91 33 2283 4183

BASF India LimitedKhasara No. 87/1 Village, Beer Plassis,Solan District, Nalagarh - 174 101, Himachal PradeshPhone: +91 1795 265 335 / 36 Fax: +91 1795 265 334

BASF Catalysts India Private LimitedE-17 & 18 Industrial Estate, Maraimalainagar - 603 209, Tamil NaduPhone: +91 44 2745 4466 / 4489 Fax: +91 44 2745 4490

BASF India Limited (Coatings Solutions)F-218, RIICO Industrial Area, Alwar Bypass, Khushkhera - 301 707, RajasthanPhone: +91 14932 50065

BASF India Limited 4B, GIDC, Dahej, Taluk - Vagra Bharuch District, Gujarat - 392 130 Phone : +91 89800 47350

Connect with BASF BASF touchpoints across India

You can download this publication on the Internet at www.india.basf.com or order the report by telephone Corporate Media Relations - Phone: +91 22 6661 8100; Investor Relations - Phone: +91 22 6661 8151

BASF India Report 2012 designed by Origin Beanstalk