Conference Call Q1 2020 Ludwigshafen, April 30, 2020 BASF stands by - PowerPoint PPT Presentation

Conference Call Q1 2020 Ludwigshafen, April 30, 2020

BASF stands by progressive dividend policy Dividend per share € Proposal 3.30 3.20 3.10 Dividend policy 3.00 2.90 3 2.80 2.70 ▪ Aim to increase the dividend per share 2.60 2.50 every year 2.20 2 Key facts 2019 ▪ Dividend proposal of €3.30 per share, an increase of 10 euro cents 1 ▪ In total, we would pay out €3.0 billion, which is fully covered by our 2019 free cash flow of €3.7 billion 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3.7% 4.6% 3.7% 3.5% 4.0% 4.1% 3.4% 3.4% 5.3% 4.9% Yield 1 1 Dividend yield based on share price at year end 2 April 30, 2020 | Conference Call Q1 2020

Macroeconomic environment characterized by extreme uncertainty Forecast revisions for key macroeconomic indicators 2020 Macroeconomic development Q1 2020 vs. Q1 2019 % % 3.0 Global GDP -1.7% Global industrial production -2.9% Global chemical production -5.2% 1.0 Global automotive production -24.2% 0 March 2020 February 2020 August 2019 November 2019 -1.0 Global GDP 2020 -3.0 Global industrial production 2020 Global chemical production 2020 -5.0 Global automotive production 2020 -20.0 3 Source: BASF, data: IHS, LMC April 30, 2020 | Conference Call Q1 2020

How does the pandemic impact global chemical customer industries? BASF segments Chemical customer industries Impact of lockdowns ▪ Health and nutrition ▪ Nutrition & Care Not or only slightly affected, ▪ Agriculture partly higher demand ▪ Agricultural Solutions ▪ Construction ▪ Industrial Solutions Majority negatively impacted by ▪ Electronics lockdowns, cautious buying ▪ Consumer goods ▪ Surface Technologies behavior and supply chain ▪ Energy and resources interruptions ▪ Rubber and plastics ▪ Materials ▪ Transportation incl. automotive ▪ Chemicals ▪ Other industries and services No general statement possible 4 April 30, 2020 | Conference Call Q1 2020

BASF Group Q1 2020: Volume growth in all downstream segments Volume development by segment Q1 2020 vs. Q1 2019 absolute (million €) terms Overall Other volume 638 Agricultural 136 Solutions 184 Nutrition & Surface Care Technologies 72 212 Industrial Solutions Chemicals Materials 56 6 (28)        0% (1%) 2% 7% 4% 7% 19% 4% relative (%) terms 5 April 30, 2020 | Conference Call Q1 2020

How we operate safely in the COVID-19 environment Dedicated safety measures in place ▪ Early activation of BASF’s global crisis management ▪ Divisions, regions and sites have activated crisis plans, which are adjusted as the situation changes ▪ Measures in production are coordinated from a site perspective (local regulation, infrastructure) in close alignment with global production steering ▪ Shifts are divided into smaller teams with minimum contact during daily operations ▪ Temporary switch to different shift system with more work hours ▪ Strict hygiene regulations and consistent tracing of infection chains ▪ Wherever possible employees work remotely (more than 40,000 worldwide) 6 April 30, 2020 | Conference Call Q1 2020

Key measures to lead BASF through the COVID-19 crisis Global steering of BASF’s Customer focus Focus on safeguarding cash production network ▪ Adapting utilization rates according to ▪ The customer is at the center of all our ▪ Strong focus on liquidity management market demand using proprietary activities ▪ Strict working capital management Verbund simulator ▪ We are committed to ensure the supply ▪ Elevated cost discipline and implementation ▪ Securing supply of key raw materials of our customers of BASF’s Excellence Program and distribution of products to our ▪ Close interaction to immediately ▪ Review of investment projects customers recognize changes in the demand pattern 7 April 30, 2020 | Conference Call Q1 2020

Change in reporting of “non - integral” shareholdings as of Q1 2020 Until December 31, 2019 As of January 1, 2020 Statement of income BASF Group 2019 (reported) Statement of income BASF Group 2019 (restated) ▪ Some of BASF’s at equity ▪ BASF’s share in net million € 2019 million € 2019 consolidated shareholdings 1 income from all at equity Sales revenue 59,316 Sales revenue 59,316 are not an integral part of the consolidated companies Gross profit on sales 16,255 Gross profit on sales 16,255 company. (integral and non-integral) ▪ Integral shareholdings will were reported in EBIT. Income from companies accounted at equity 116 Income from integral companies accounted at equity 265 Income from operations (EBIT) 4,052 Income from operations (EBIT) 4,201 remain part of the at equity consolidation in EBIT. Net income from shareholdings (45) Income from non-integral companies accounted at equity (149) Financial result (750) Net income from shareholdings (194) ▪ As of January 1, 2020, non- Financial result (705) integral shareholdings are Income before income taxes 3,302 Income taxes (756) Income before income taxes 3,302 reported under “net income Income after taxes from continuing operations 2,546 Income taxes (756) from shareholdings,” which is Income after taxes from discontinued operations 5,945 Income after taxes from continuing operations 2,546 Noncontrolling interests (70) a new subtotal of income Income after taxes from discontinued operations 5,945 Net income 8,421 Noncontrolling interests (70) before taxes. Net income 8,421 ▪ The prior-year figures are At equity consolidation (share of net income shown in EBIT) restated. BASF’s share in net income from non -integral shareholdings are shown in net income from shareholdings. At equity consolidated integral shareholdings remain part of EBIT. 1 These include in particular shares in Wintershall Dea and Solenis 8 April 30, 2020 | Conference Call Q1 2020

BASF Group Q1 2020: EBIT before special items down due to considerably lower earnings in Chemicals, Materials and Other EBIT before special items 1 by segment Q1 2020 vs. Q1 2019 Sales bridge Q1 2020 vs. Q1 2019 million € million € 20,000 1,750 1,640 2,000 16,753 125 108 286 15,596 638  Agricultural Solutions 9% 1,500 10,000 Nutrition & Care 14%  1,000  Surface Technologies 46%  Industrial Solutions 3% 500 Materials (35%)   Chemicals (43%) 0 0 Q1 2019 Volumes Prices Portfolio Currencies Q1 2020 Other (17%)  Q1 2019 Q1 2020 Sales development -500     Q1 2020 vs. Q1 2019 4% 1% 1% 1% 1 The 2019 figures have been restated to reflect the reclassification of income from non-integral 9 April 30, 2020 | Conference Call Q1 2020 companies accounted for using the equity method to net income from shareholdings.

Q1 2020: BASF Group shows resilience amid corona crisis with diversified portfolio and financial solidity Financial figures Q1 2020 Q1 2019 Change € € % Sales 16,753 million 15,596 million 7 EBITDA before special items 1 2,579 million 2,642 million (2) EBITDA 1 2,428 million 2,770 million (12) EBIT before special items 1 1,640 million 1,750 million (6) EBIT 1 1,456 million 1,779 million (18) Net income 885 million 1,406 million (37) Reported EPS 0.96 1.53 (37) Adjusted EPS 1.36 1.70 (20) Cash flows from operating activities (1,030) million 373 million . Sales development Volumes Prices Portfolio Currencies     Q1 2020 vs. Q1 2019 4% 1% 1% 1% 1 The 2019 figures have been restated to reflect the reclassification of income from non-integral 10 April 30, 2020 | Conference Call Q1 2020 companies accounted for using the equity method to net income from shareholdings.