BASF CEO Roadshow UK

Capital Market Story
Dr. Martin Brudermüller, Chief Executive Officer

Virtual CEO Roadshow UK
1 November
November 2023 | 7,
BASF2023
Capital Market Story
Cautionary note regarding
forward-looking statements
This presentation contains forward-looking statements. These statements are based on current
estimates and projections of the Board of Executive Directors and currently available information.
Forward-looking statements are not guarantees of the future developments and results outlined
therein. These are dependent on a number of factors; they involve various risks and uncertainties; and
they are based on assumptions that may not prove to be accurate. Such risk factors include those
discussed in Opportunities and Risks on pages 157 to 167 of the BASF Report 2022. BASF does not
assume any obligation to update the forward-looking statements contained in this presentation above
and beyond the legal requirements.
2 November 2023 | BASF Capital Market Story

Agenda
1 2 3
At a glance Q3 2023 reporting Measures to increase
competitiveness
4 5 6
Battery the
Pushing materials driving
transition to a Unique position to capture Battery materials driving
electromobility
sustainable and future
economy growth in Asia electromobility and growth
growth

What is driving BASF’s future growth?
Global trends provide opportunities for growth in the chemical industry
Population growth:
Driven by the
+22% Digitalization:
Rapid growth in
660
emerging markets 2022 to 2050 volume of data zettabytes in 2030
China the largest chemical market:

Share of global
~55% Climate change:
Required reduction of greenhouse gas
–70%
chemical market by 2030 emissions to achieve the 2°C goal by 2050
Circular economy:
Non-recycled plastic waste
~200 Electromobility:
Growing demand for
~22%
worldwide million metric tons per year battery materials per year
2022 to 2030
4 November 2023 | BASF Capital Market Story Sources: UN, IEA, Conversio, UBS Foresight, BASF
Unique position to deliver long-term value
Unique Verbund Industry-leading Strong and expanding Creating value to society Progressive
concept innovation platform local presence in fast and contributing to a dividend policy
growing Asian market sustainable development
 6 Verbund sites  €2.3 billion R&D  2 Verbund sites  Target: 25% CO2  Practice to increase the
globally expenses in 2022 already emission2 reduction dividend per share each
by 2030 (compared year, or at least maintain
 239 production  ~10,000 employees  ~70 production with 2018) it at the previous year’s
sites worldwide in total in R&D sites level
 We aim to achieve
 6.2 million metric tons  Sales of ~€12 billion  €21.8 billion1 sales net zero CO2  Dividend of €3.40 per
of CO2 avoided in 2022 with products in 2022 emissions2 by 2050 share for 2022
globally in 2022 launched during last
5 years
1 Salesin Asia Pacific by location of customer. Only includes sales from BASF entities fully consolidated according to IFRS 10/11
2 Scope 1 and Scope 2 (excluding the sale of energy to third parties, including offsetting). The target includes greenhouse gases
5 November 2023 | BASF Capital Market Story according to the Greenhouse Gas Protocol, which are converted into CO2 equivalents (CO2e).
The BASF Group’s segments
Chemicals Materials Industrial Solutions

The Chemicals segment supplies BASF’s other segments The Materials segment offers advanced materials and their The Industrial Solutions segment develops and markets
and customers with basic chemicals and intermediates. precursors for the plastics and plastics processing ingredients and additives for industrial applications.
 Sales 2022: €14,895 million industries.  Sales 2022: €9,992 million
 EBIT before specials items 2022: €1,956 million  Sales 2022: €18,443 million  EBIT before specials items 2022: €1,091 million
 EBIT before specials items 2022: €1,840 million
Surface Technologies Nutrition & Care Agricultural Solutions

The Surface Technologies segment offers chemical The Nutrition & Care segment produces ingredients and The Agricultural Solutions segment is an integrated provider
solutions for surfaces and automotive coatings, as well as solutions for consumer applications such as human and of seeds, crop protection and digital solutions for the
battery materials and catalysts. animal nutrition, and home and personal care. agricultural sector.
 Sales 2022: €21,283 million  Sales 2022: €8,066 million  Sales 2022: €10,280 million
 EBIT before specials items 2022: €902 million  EBIT before specials items 2022: €618 million  EBIT before specials items 2022: €1,220 million
6 November 2023 | BASF Capital Market Story Other not depicted on the slide: Sales 2022: €4,368 million, EBIT before special items 2022: -€749 million
Our unique Verbund concept is one of BASF’s greatest assets
with multiple benefits strengthening the portfolio
Production Technologies
 6.2 million metric tons of CO2  Leverage technological
emissions avoided globally in Verbund advantages and innovation across
2022 all segments
 Integration enables drop-in  Unique expertise in developing
solutions for bio-based and and integrating new, low-emission
recycled feedstock for low- technologies
carbon products
Value chains Markets Digitalization

 Ensure competitive supply of key  Create customer relevance  Harvest the advantages offered by
raw materials and products to all through size and broad portfolio digitalization across BASF, for
segments while avoiding CO2 example, by calculating product
emissions carbon footprints

We operate close to our customers in all regions worldwide
Europe
Sales (million €) 33,922
Employees 67,958
North America
Asia Pacific
Employees 16,036
Employees 20,452
South America, Africa, Middle East Selected sites

Sales (million €) 7,712 Verbund sites
Employees 7,035 Planned Verbund site
BASF sales by industry 2022

Direct > 20% Chemicals and plastics | Transportation (respectively)
customers 10–20% Agriculture | Consumer goods (respectively)
< 10% Construction | Electronics | Energy and resources | Health and nutrition (respectively)
8 November 2023 | BASF Capital Market Story Sales 2022 by location of customer
Priorities for the use of cash
1 2 3 4
Organic Progressive Portfolio Share
growth dividend management buybacks
 Capex budget for 2023 to  Practice to increase the  Strengthen portfolio through  Share buybacks are part of
2027 reduced to €24.8 billion dividend per share each selective M&A opportunities our toolbox but currently
(original capex budget: €28.8 year, or at least maintain it while maintaining price not being used
billion) at the previous year’s level discipline  Between January 2022
 Around €2.3 billion in R&D  Strong balance sheet and  Focus the portfolio with and February 2023 own
expenses per year high equity ratio1 support continued pruning measures shares were repurchased
dividend policy for ~€1.4 billion
9 November 2023 | BASF Capital Market Story 1 As of September 30, 2023: 48.8%
Increased focus on capex efficiency: Capex will be reduced by
~€4.0 billion in the period from 2023 to 2027
Capex budget
Billion €, 2023–2027
30 28,8  Capex budget of €28.8 billion for 2023 to 2027 originally
-1,0 communicated in February 2023 will be reduced to
24,8
-3.0 €24.8 billion
20
 In 2023, capex will be reduced by ~€1.0 billion
– from €6.3 billion to €5.3 billion
 Capex for 2024 to 2027 will be reduced by ~€3.0 billion
 In February 2024, we will present the new capex budget
10
for the planning period from 2024 to 2028
0
Reduction 2023 Reduction 2024-2027
Capex budget as of February 2023 Capex budget adjusted end of October 2023

Preparing for the future: BASF’s Verbund site project in Zhanjiang is
well on track
Project execution on time and in budget
 Second downstream plant (TPU) successfully started
up in September 2023 June 2022
 Construction activities stepped up, with currently more

than 15,000 construction workers on site every day
 Stringent project execution; favorable sourcing
environment in China is leveraged
October 2023
Attractive financing conditions in China

 We are financing the Zhanjiang Verbund site with a combination of equity (20%) and debt (80%)
 Equity funded by dividends from existing BASF Group companies in China
 Debt financing will be based on the Chinese capital market and local bank financing

Preparing for the future: BASF’s major projects in the United States
Third and final phase of the MDI expansion project at the Verbund site in
Geismar, Louisiana, is fully on track
 Additional upstream units and a splitter to increase production capacity to
approximately 600,000 metric tons per year by 2026
 Investment of $780 million in final expansion phase (2022–2025)
 Including the first and second phases, the MDI expansion project is BASF’s
largest wholly owned investment in the United States
BASF and Yara evaluate low-carbon blue ammonia project

 Joint study to develop and construct a world-scale low-carbon blue ammonia
production facility with carbon capture in the U.S. Gulf Coast region
 Feasibility study of a plant with a total annual capacity of 1.2 to 1.4 million tons
 Approximately 95% of the CO2 generated from the production process is aimed to
be captured and permanently stored in the ground
 Project underlines BASF’s commitment to drive the sustainable transformation of
the chemical industry

Preparing for the future: BASF is the first company to establish
a co-located battery materials and recycling center in Europe
 BASF is the first company to establish a co-located battery

materials and recycling center and close the loop in the
European battery value chain
 New plant is first production facility for high-performance
cathode active materials (CAM) in Germany and first fully
automated large-scale CAM production facility in Europe
 Supply of products tailored to the specific needs of cell
manufacturers and automotive OEMs in Europe; plant
fully sold out for the next years
 Construction of a world-class battery recycling plant to
produce black mass already started; production expected
to begin in 2024
 With these investments, BASF is supporting the European
market and at the same time enabling faster growth for its
global business

BASF’s industry-leading innovation platform ensures long-term
organic growth
R&D expenses 2022 Key facts 2022
 R&D expenses to sales ratio 2.6%
Corporate research, Other Chemicals  Commitment to R&D with annual spending
17% 4% of ~€2.3 billion
Materials  ~10,000 employees in R&D
9%
 ~1,013 new patents filed in 2022
Industrial Solutions
Agricultural €2,298 million 7%
 Research Verbund: Academic Research Alliances
Solutions are complemented by cooperations with
41% Surface Technologies ~220 universities and research institutes
15%
 ~€12 billion sales generated from R&D activities
Nutrition & Care with products launched during last 5 years
7%  Peak sales potential of BASF’s Agricultural
Solutions innovation pipeline of >€7.5 billion
between 2022 and 2032

Attractive shareholder return – also in challenging times
Dividend per share
€
4,00
3,30 3,30 3,40 3,40

3,10 3,20 Key facts 2022
2,90 3,00
3,00 2,80
2,70  Dividend of €3.40 per share
 Total payout of €3.0 billion2 fully covered by
2,00 our free cash flow of €3.3 billion in 2022
 Dividend yield of 7.3% based on the share
1,00 price of €46.39 at year end 2022
0,00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Yield1 3.5% 4.0% 4.1% 3.4% 3.4% 5.3% 4.9% 5.1% 5.5% 7.3%
1 Dividend yield based on share price at year end

15 November 2023 | BASF Capital Market Story 2 Based on the 893,854,929 shares outstanding as of December 31, 2022
We have consistently refocused our portfolio toward innovative
growth businesses
Acquisitions Divestitures
BASF
 Functional crop care  Styrenics
core business
 Personal care and food ingredients  Fertilizers
Selected, closed
 Omega-3 fatty acids transactions  Natural gas trading and storage
 Enzymes 2010−today  Custom synthesis business
 Battery materials  Textile chemicals
 Specialty plastics  Polyolefin catalysts
 Refinish coatings  Industrial coatings
 Surface treatment  Leather chemicals
 Seeds and crop protection  Water and paper chemicals
 Polyamide business  Oil & gas
 Construction chemicals
~€9.5 billion sales in emerging
and innovation-driven businesses  Pigments business
~€30.0 billion sales in businesses with
decreased differentiation potential

Status update on Wintershall Dea
 BASF stands by its strategic goal of selling its 72.7% share in

Wintershall Dea and continues to evaluate monetization options
 Wintershall Dea is currently in the process of legally separating its
Russia-related business; the separation is planned to be completed
by mid-2024
 Federal investment guarantees in place for Russian assets
 For the business year 2022, BASF received ~€290 million as
common dividend from Wintershall Dea
 Wintershall Dea is adjusting its company structure:
− Annual cost savings of €200 million planned
− Management board reduced from five to three members
− Reduction of around 500 jobs company-wide expected

Outlook 2023 for BASF Group
Outlook 2023
Sales €73 billion – €76 billion
EBIT before special items €4.0 billion – €4.4 billion
ROCE 6.5% – 7.1%
CO2 emissions 17.0 – 17.6 million metric tons
Underlying assumptions
 Growth in gross domestic product: 2.0%
 Growth in industrial production: 1.0%
 Growth in chemical production: 0.0%
 Average euro/dollar exchange rate: $1.10 per euro
 Average annual oil price (Brent crude): $80 per barrel

What BASF stands for
 Competitive advantages through flexible Verbund concept

for integrated production
 Strategic focus on local production for local markets and We create

on high-growth market segments, e.g., battery materials chemistry
for a
 Industry leader in shaping the transformation to net zero sustainable
CO2 emissions with an ambitious carbon management program future
 Powerful innovation across a broad range of technologies to provide

solutions for various customer industries and to increase our productivity
 Diverse team of committed, capable and creative employees
 Long-term shareholder value creation and attractive dividend

Agenda
1 2 3
competitiveness
4 5 6
Battery the
electromobility
growth

Q3 2023: BASF’s EBIT before special items of €575 million is
in line with average analyst estimates
Sales development Volumes Prices Portfolio Currency
 In Q3 2023, sales declined by 28.3% to €15.7 billion,
Q3 2023 vs. Q3 2022 -9.4 -14.4 -0.3 -4.2
   
mainly due to lower prices and volumes
Q3 2023 vs. Q2 2023 -2.6 -5.4 0.0 -1.0
  
 BASF’s volumes declined considerably compared with
EBIT before special items
Q3 2022 across almost all customer industries
Million €
 In Q3 2023, volumes declined by 3% compared with -57.3%
Q2 2023
1.931
2.000
 Earnings in the Agricultural Solutions and Surface
Technologies segments increased compared with Q3 2022 1.348
1.007
 Overall, EBIT before special items declined by €772 million 1.000
compared with Q3 2022 and amounted to €575 million, 575
373
in line with average analyst estimates of €601 million1
0
Q3 Q4 Q1 Q2 Q3
2022 2022 2023 2023 2023
21 November 2023 | BASF Capital Market Story 1 Average analyst estimates compiled by Vara on behalf of BASF on October 9, 2023
BASF Group Q3 2023 and Q1–Q3 2023: Financial figures
Financial figures Q3 2023 Change Q1–Q3 2023 Change
Million € % Million € %
Sales 15,735 -28.3 53,031 -22.0
EBITDA before special items 1,545 -33.5 6,354 -32.1
EBITDA 1,363 -39.6 6,081 -35.0
EBIT before special items 575 -57.3 3,514 -46.0
EBIT 394 -69.6 3,235 -49.7
Net income from

-245 . 30 .
shareholdings
Net income -249 . 1,812 -57.1

Strong cash flow generation in Q3 2023
Q3 2023 Q1–Q3 2023 Q3 2023 vs. Q3 2022

Million € Million €  Cash flows from operating activities
3.000 4.000 3.848 improved by €384 million to €2.7 billion
2.686
3.500  Increased focus on reducing inventory
2.500
levels pays off; changes in net working
3.000
2.000
capital led to a cash inflow of €1.9 billion
2.500
 Payments made for property, plant and
1.465
1.500 2.000 equipment and intangible assets rose by
-1.221
1.500
€215 million to €1.2 billion
1.000
1.000
 Free cash flow increased by €170 million
500 488
to €1.5 billion
500
-3.361
0 0
Cash flows from Payments made Free cash flow Cash flows from Payments made Free cash flow
operating for property, plant Q3 2023 operating for property, plant Q1–Q3 2023
activities and equipment activities and equipment
and intangible and intangible
assets assets

Strong balance sheet
Balance sheet September 30, 2023, vs. December 31, 2022

Billion €
82.6  Total assets decreased by
84.5 82.6 84.5
€1.9 billion to €82.6 billion
 Net debt amounted to €18.9 billion
– an increase compared with year-end
47,1 40,3
40,9 2022 but a decrease compared with
Equity
48,2 June 30, 2023
Noncurrent  Equity ratio: 48.8%
assets
(Dec. 31, 2022: 48.4%)
19,0 Financial  BASF has good credit ratings1,
21,4 debt
15,1
16,0 especially compared with competitors
Inventories
Accounts 12,1 Other

11,8 24.6
receivable, trade 20.9 liabilities
Other assets 5,0 6,6
Liquid funds 2,5 2,7
Sep. 30, 2023 Dec. 31, 2022 Sep. 30, 2023 Dec. 31, 2022
24 November 2023 | BASF Capital Market Story 1 Current ratings: Moody’s A3/P-2/outlook stable, S&P A-/A-2/outlook stable, Fitch A/F1/outlook stable
Chemicals
Sales Q3 2023 vs. Q3 2022 EBIT before special items

Million € Million €
Petrochemicals
1,733 400
323
-37% 241
Intermediates 202
697 200
-32%
€2,430 47
-36% 0
Q3 Q4 Q1 Q2 Q3
-200 -79
2022 2023
Sales development Volumes Prices Portfolio Currencies

Q3 2023 vs. Q3 2022 -9.9% -22.9% - -3.2%
  

Materials

Million € Performance Million €
Materials 400
1,765
-22% 277
Monomers 265
243
1,584
-35% €3,349 200
158
144
-29%
0
Q3 Q4 Q1 Q2 Q3
2022 2023

Q3 2023 vs. Q3 2022 -5.7% -18.6% - -4.7%
  

Industrial Solutions

400
Dispersions & Resins
1,201 299
Performance -25%
Chemicals 216
747 €1,948 200
-31%
-28% 120 124 122
0
Q3 Q4 Q1 Q2 Q3
2022 2023

Q3 2023 vs. Q3 2022 -11.3% -9.7% -2.4% -4.1%
   

Surface Technologies

400
Catalysts
2,781
-34% 263 257
239 230
Coatings €3,887 200 170
1,106
-1% -27%
0
Q3 Q4 Q1 Q2 Q3
2022 2023

Q3 2023 vs. Q3 2022 -11.0% -11.1% -0.1% -4.9%
   

Nutrition & Care

300
Nutrition & Health Care Chemicals
530 1,158 180
-12% -24%
100 82
€1,688 33
-20%
Q3 Q4 Q1 Q2 Q3
-19 -15
-100
2022 2023

Q3 2023 vs. Q3 2022 -6.3% -10.7% - -3.6%
  

Agricultural Solutions

4.000
1.260
1.200
3.000
2.142 -19%
800
2.000 1.744
1.000 400
213
122 53
7
0 0
Q3 2022 Q3 2023 Q3 Q4 Q1 Q2 Q3
2022 2023

Q3 2023 vs. Q3 2022 -18.7%  4.9% - -4.8%
 

Review of “Other”
Financial figures Q3 2023 Q3 2022

Sales 689 1,153
EBIT before special items -46 22
of which Costs of corporate research -59 -73
Costs of corporate headquarters -54 -65

Foreign currency results, hedging and other
measurement effects 3 38
Other businesses 0 7
Special items -37 -5
EBIT -83 17

Agenda
1 2 3
competitiveness
4 5 6
Battery the
electromobility
growth

Increasing competitiveness: Together with initiatives in global service
units on track to reduce annual costs by ~€1.1 billion by end of 2026
 Expected annual  Expected annual

cost savings cost savings by
increased to: Adaptation the end of 2026
>€600 million1 Cost savings
of Verbund confirmed:
(from >€500 million) program >€200 million
by the end of 2024 structures
with focus
and >€700 million in Ludwigshafen  Estimated affected
by the end of 2026 on Europe positions:
~700
 Estimated affected
positions:
~2,6002
1 Annual run rate of >€300 million confirmed to be achieved by the end of 2023
33 November 2023 | BASF Capital Market Story 2 Net effect; this figure includes new positions to be created, in particular in hubs
Adaptation of Verbund structures in Ludwigshafen to improve the
competitiveness of the site; measures to be concluded by end of 2026
Affected production assets Fixed cost reduction Natural gas demand
>€200 million -4.8

10% of the asset replacement
value at the site TWh/a
per year (~15% of 2021)
Expected affected positions Power demand CO2 emissions1
~700 -0.7 TWh/a

(~11% of 2021) -0.9 Mt/a
(~12% of 2021)
34 November 2023 | BASF Capital Market Story 1 Expected Scope 1 and Scope 2 emission reduction for BASF SE
Technical optimization and substitution have significantly reduced
the overall natural gas demand at the Ludwigshafen site
Gas supply threshold in %
Measures implemented in 2023
based on average consumption in 2021
 Conversion of two gas turbines in combined heat and
power plants to allow operation with either gas or fuel oil
~50%  Natural gas saving measures have been implemented in
production facilities, e.g., using the by-product ethane from
our steam crackers to feed our acetylene plant
~30% Measures to be implemented by end of 2024
 Accelerate access to renewable energy
 Invest in green hydrogen production (electrolyzer)
 Continue procurement of LNG and secure access to
terminal capacities
 Continue flexible switch between power import and own
production
Spring 2022 End of 2022 End of 2023

Agenda
1 2 3
competitiveness
4 5 6
Battery the
electromobility
growth

Our commitments to reaching the Paris Climate Agreement
25%
2030 CO2 emissions
reduction
(compared with 2018)1 net zero
2050 CO2 emissions1
37 November 2023 | BASF Capital Market Story 1 Scope 1 and Scope 2; 2030 target compared with 1990: 60% CO2 reduction
No downstream decarbonization without upstream decarbonization
22
BASF greenhouse gas emissions 2018 Global GHG emissions
Million metric tons per year Scope 1+2
11 11
Energy production Chemical production1
5 6 9 2
Electric power Steam Upstream Downstream
Grey-to-green Power-to-steam New technologies Bio-based feedstocks
Continuous opex2
38 November 2023 | BASF Capital Market Story 1 Includes emissions from process energy 2 Operational excellence measures
Our roadmap is backed by robust calculations and solid planning
Projected BASF greenhouse gas emissions

Million metric tons CO2 equivalents
31
Lower CO2 emissions Projected emissions
already materialized without mitigation 2018
29
until 2020 11 million tons of CO2
Opex avoided annually by 2030
27
25 Grey-to-green
(including RECs)
23
Baseline 2018
21 21.9
Technology-based CO2
19 abatement projects
17 Target 2030
16.4
15
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Switching our power to renewable energy will be
the main driver of emission reduction until 2025
BASF global power demand and renewable supply projection
Terawatt hours
2040
2030
projection x2-3  BASF aims to source more than 60% of
2022 >60% power
demand
its power needs from renewable sources
by 2030
50
16% of demand
covered with
renewables  BASF power consumption expected to
of demand increase strongly due to electrification
covered with on our journey to net zero
renewables
 BASF pursues a make-and-buy strategy

25
to secure access to renewable power
 Early investments in renewable power
assets expected to offer advantageous
0
2022 2025 2030 2035 2040
economics in the future
Grey energy Green energy Additional need for green energy for electrification, depending on availability

Construction started on world’s first demonstration plant
for large-scale electrically heated steam cracker furnaces
Conventional
furnace
 Construction of demonstration plant started at
CO2 Ludwigshafen Verbund site in cooperation with
Naphtha
Raw
olefins
SABIC and Linde
850°C  Potential to reduce process-related emissions

Furnace by at least 90%
Natural gas
 Supported by German Federal Ministry
for Economic Affairs and Climate Action and
eFurnace funded by the European Union
Naphtha
Raw  Startup of the demonstration plant planned
olefins
for 2023
850°C
eFurnace
Renewable
energy

We have built an industry-leading system enabling us to provide
product carbon footprints calculated with a certified digital solution
Scope 3
Emissions caused by suppliers
and generation of raw materials
CO2
Software solution
Product carbon Customer benefits
footprints of  Transparency on CO2
sales products emissions
 Identification of main
 TÜV-certified2 reduction levers
Scope 1 + 2
 Meets ISO standards3  Certified software
Emissions caused by own
operations1  Calculates product carbon footprints  Transparent
cradle-to-gate documentation
Energy generation and chemical processes

1
ISO 14067:2018
2
42 November 2023 | BASF Capital Market Story 3 ISO 14040:2006, 14044:2006, 14067:2018, GHG Protocol Product Standard
We create transparency on the CO2 emissions of our raw materials
as an important step in reducing BASF’s Scope 3 emissions
BASF’s CO2e emissions from raw material

purchase 2022  BASF is supporting various initiatives to develop and establish
workable standards for the chemical industry
 Supplier CO2 Management Program rolled-out in 2021 to collect
specific PCFs and align on reduction targets
Total  More than 1,300 suppliers have been approached since starting the
60% 49 million program, accounting for 60% of Scope 3 emissions1
addressed by
outreach metric tons1  Collaboration through knowledge sharing on PCF calculation
methodology ongoing to ensure engagement and quality of data
 First suppliers have committed to reducing their emissions
 BASF will make PCFs a buying criterion to ensure PCF reduction
of its sales products
43 November 2023 | BASF Capital Market Story 1 GHG protocol Scope 3.1: purchased goods and services: 51 million tons CO2e, thereof 49 million tons purchased raw materials
BASF’s Circular Economy Program: Targets
 250,000 metric tons of circular feedstock by 2025

 Double circular sales to €17 billion by 2030
 Prioritize related capex, M&A, R&D

From a linear to a more circular economy
– BASF contribution: ChemCyclingTM
Creating value from waste
 BASF works with technology partners specialized in
converting mixed plastic waste and end-of-life tires
ChemCyclingTM into liquid feedstock (pyrolysis oil)
+ can handle mixed  The recycled raw material is fed into BASF’s
plastic waste value chains
+ produces virgin-  Pyrolysis oil is used to produce mass-balanced
grade materials Ccycled™ materials for industries like automotive,
+ replaces virgin packaging and textiles
fossil resources
+ CO2 emissions  Incineration
prevented1
Linear economy  Landfill
 Littering
Mechanical
recycling
45 November 2023 | BASF Capital Market Story 1 Compared to conventional plastic production and incineration of plastic waste
BASF in sustainability ratings and rankings
MSCI ESG Research

In 2023, BASF was rated A. The analysts highlighted that BASF is present in clean
tech markets and has a robust carbon mitigation and water reduction strategy.
CDP Disclosure Leadership
In 2022, BASF achieved scores of A in “Water” and A- in “Climate” and “Forests,”
thus attaining leadership status in all categories we are participating in.
Morningstar Sustainalytics
BASF belongs to the best category for “diversified chemicals” with a medium ESG
risk and was recognized for its strong risk management, e.g., in the areas of CO2,
emissions, wastewater and waste as well as occupational health and safety.
FTSE4Good Global Index
BASF was again included in the FTSE4Good Global Index in 2023.
ISS ESG
In 2023, BASF held its Prime Status (B-), being among the top decile rank of
the companies assessed.

Agenda
1 2 3
competitiveness
4 5 6
Battery the
electromobility
growth

China is the major growth driver for global chemical production:
~80% of growth will come from Greater China by 2030
Real chemical production1 Share of absolute chemical production growth by region
trillion US$ %
6,0 South America
5.3 2%
CAGR 0,1
5,0 2.5% 0,2 Middle East, Africa
4.4
0,7 4%
0,1
4,0
0,2 Rest of Asia Pacific
South America 0,6
0,6 9%
Middle East, Africa
0,6
0,7 North America
3,0 Rest of Asia Pacific 4%
0,7 Greater China
Europe
2,0
North America
0%
2030 81%
Europe
3,0
Greater China
1,0 2,2
0,0
2022 2030
Source: BASF 1 Real chemical production excluding pharmaceuticals, US$ base year 2015
48 November 2023 | BASF Capital Market Story Figures may not add up due to rounding effects.
BASF’s Verbund site in Nanjing is a prime example of our success
in China
 50:50 joint venture with Sinopec founded in 2000, start-up

in 2005, major expansions in 2011 and 2014
 Scope has continuously expanded over the years toward
longer and more diversified value chains
 Third-largest BASF site, US$5.8 billion gross investment
(100%)
 Capacity: ~3 million metric tons per year; 33 production plants
including steam cracker
 Strong focus on operational excellence and consistent plant
maintenance resulted in best-in-class asset effectiveness
 With 23% EBITDA margin1 BASF-YPC is one of the most
profitable BASF sites
49 November 2023 | BASF Capital Market Story 1 Average 2018-2022

Guangdong is home to key customers from fast-growing industries
CAGR 2015–2022 Market characteristics5

% p.a.
 Nearly 127 million residents in
Guangdong province (2022)
~5.2% ~4.5%
 GDP Guangdong (2022):
Strongly growing 740
173 Large chemical >$1.9 trillion (exceeding Brazil)
industrial base1 production2
Billion $ Billion $  GDP CAGR 2022–2037: ~4.8% p.a.
2022 2022  Key customer industries: transportation,
consumer goods, home and personal
~8.0% Guangdong ~4.2% care, electronics
 Chemical products are generally
Largest automotive 4.154
production, China3 603 Steady increase of undersupplied from local production
# of motor vehicles built private consumption4
in Guangdong (1,000) Billion $
2022 2022
Industry real output, 2015-based. Guangdong Bureau of Statistics

1
Real chemical gross output, 2015-based, inferred by gross output/value added ratio for China, Guangdong Bureau of Statistics
2
3 Guangdong Bureau of Statistics
4 Real private consumption, 2015-based. National Bureau of Statistics with S&P Global forecast, subject to retrospective revision
50 November 2023 | BASF Capital Market Story 5 Guangdong Bureau of Statistics, S&P Global
Location in Zhanjiang enables BASF to capture long-term profitable
growth in the fastest growing chemical market worldwide
 Customers: Proximity to the economic centers of China’s fastest

growing province Guangdong; shortest sea routes to Southeast Asia
 Excellence in production: Integrated Verbund platform, cutting edge
technologies, smart solutions, deep seaport, world-class logistics
 Developing downstream value chains: BASF will focus on
products that are in high demand, with options for further expansion
 Differentiating from competitors beyond products: Front-runner
BASF South
China position in sustainability and circular economy
Baosteel Sea
Sinopec
Donghai
 Leveraging industry ecosystems: BASF will benefit from
Island collaborations with neighbors and government incentives
 Foreign trade advantages: Guangdong province intends to set up
Donghai Island as a free trade zone
51 November 2023 | BASF Capital Market Story The inset illustration is indicative and is not an accurate map of the depicted area
Main construction phases of the new Verbund site in Zhanjiang, China
– stepwise approach
Initial phase Phase 1 Phase 2 Update on progress
on stream: 2022–2023 start-up: as of 2025 start-up: as of 2028  First downstream plants
started up in August 2022 and
First downstream plants: Heart of the Verbund: Verbund expansion in September 2023
Performance Materials for auto- Petrochemicals plus further and diversification
motive and consumer industries downstream plants  The construction of the core of
the Verbund is in full swing
Engineering plastics C2 value chain
Steam Additional  Stepwise construction approach
and thermoplastic C3 value chain allows for flexibility, especially
cracker downstream plants
polyurethanes C4 value chain with regard to phase 2
Backward integrated into world-scale

upstream plants to achieve Verbund
synergies in downstream value chains

Verbund site Zhanjiang uses latest technologies to reduce CO2
footprint compared with standard gas-powered petrochemical site
Projected CO2 emissions of BASF at Verbund site in South China
Million metric tons
6–9
4.1 Accelerated supply

of 100% renewable
electricity targeted
Cracker
Verbund Syngas
integration incl. CO2 Cracker
recycling 1.8
eDrive
Power
supply
Renewable
energy
Coal-powered Gas-powered Phase 1 2050
petrochemical site petrochemical full start-up net zero
of similar scope site

Key financials of BASF’s new Verbund site in Zhanjiang
Projected key financials by 2030
Up to €10 billion
€4.0–5.0 billion €1.0–1.2 billion
sales EBITDA
total capital expenditure
(peak: 2023–2025)
 The greenfield character of the new Verbund site results in a higher share of infrastructure
investments compared with a brownfield project
 Infrastructure investments will be diluted with future investments/expansions
 The new Verbund site will be BASF’s key platform for long-term profitable and sustainable
growth in China even beyond phase 1 and phase 2

BASF’s new Verbund site in Zhanjiang: Key takeaways
China’s Guangdong BASF is very BASF has a The new Verbund site
macroeconomic province is the well positioned proven track will be a key
environment is economic to capture future record of strong top platform for
robust and growth engine growth in China by line and earnings long-term
develops toward more of China leveraging its unique growth in Greater profitable and
China
self-sufficiency and a powerhouse Verbund know-how sustainable
and sustainability and longstanding
of BASF’s key growth of
customer industries relationships
BASF Group

Agenda
1 2 3
competitiveness
4 5 6
Battery the
electromobility
growth

The automotive industry is in the middle of a major transformation
toward electromobility
Powertrain development Regional BEV split
Light-duty vehicle production volume (million units) %
100
12%
80
16%
60
29%
40 ICE
FHEV >70% RoW
>45% PHEV North America
20 43%
BEV Europe
FCEV China
0
2022 2025 2030 2030
By 2030, we expect that >45% of all new cars will be BEVs and PHEVs
with China and Europe representing >70% of global demand
The chemical content per car is higher in a BEV compared to ICE,
with CAM as the single largest growth opportunity
Chemical content per car Main contributors1
difference in € per car vs. conventional
ICE BEV
x2.5
Powertrain2 Coolants Plastics Coatings
The cathode active material (CAM) as key component of any battery cell more than
doubles the chemical content which can be found in today’s average ICE vehicle
1 Only representative for relative change in projected sales
58 November 2023 | BASF Capital Market Story 2 Emission catalyst vs. cathode active material (both incl. metals)
The CAM market will grow by ~24% per year and reach a total size
of 7,700 kt by 2030
Global CAM market forecast1

kt
7,700
15% Americas Rapid growth of global

EV demand …
CAGR
+24%
~24% 25% Europe
… accelerates the need for
3,300
global CAM capacity
investments and …
60% Asia
1,400
… drives demand for base
metals (i.e., Ni, Co, Li)
2022 2025 2030 2030
CAM market is driven by battery performance, safety and cost,

which are all key parameters for BEVs
All applications (e-mobility, energy storage systems, consumer electronics) and all cathode chemistries;
1
59 November 2023 | BASF Capital Market Story market size can vary significantly due to volatility in metal prices; status as of February 2023
Product innovation enables the broadest CAM portfolio in the
industry, and we continue to add new solutions
+ + Energy density
+ Cost benefit
- Thermal stability
Ultra-high Ni
0% 100%
 Ultra-high Ni CAM, ≥220 Ah/kg
 Ni >90%, Co <5%
HED™ products
 Up to stabilized LNO
 Pushing boundaries for high-performance applications
 High energy density NCA and NCM Ni
cathode materials Co-free CAM
 Ni content ranging from 60% to >90% Co
 Ni-rich NMx
 Already used in xEV applications today
 Over-lithiated Mn-rich, e.g., NCM-307
10% 30%  Focus on lower cost and improved safety
 Candidate for mass market entry due to price advantage
0% Mn 80%
+ Energy density + + Cost benefit
+ Thermal stability + + Thermal stability
+ Cycle life + Sustainability
- Sustainability - Cycle life (currently)
Our technology toolbox offers customized solutions for all cell formats
and provides a basis for innovations beyond classical lithium-ion batteries
BASF has production assets and R&D hubs in close proximity to the
most important BEV markets in every region
2012 2022
Europe
greenfield 2023 2015 2017
First CAM Intention to production CAM precursor Foundation of BASF Tripled capacity at BASF
production facility acquire land for footprint production facility TODA Battery Materials, TODA Battery Materials
in Elyria, Ohio production in Harjavalta, Japan, with R&D center in Onoda, Japan
(CAM, PCAM) Finland
and recycling
in Bécancour,
Canada
Production
2018 R&D center R&D center 2022–2024 in China 2024
Second CAM in Beachwood, in Ludwigshafen, CAM production Next capacity increase at BASF
production facility Ohio Germany facility, TODA Battery Materials
in Battle Creek, battery recycling 2021 in Onoda, Japan
Michigan prototype plant BASF Shanshan Battery
and black mass Materials with R&D Center
recycling plant serving the largest battery
in Schwarzheide, materials market, China
Germany
2020
BASF and Eramet evaluate
nickel-cobalt refining
Production sites complex
Research & development hubs in Weda Bay, Indonesia
61 November 2023 | BASF Capital Market Story Map for indicative purposes, not adjusted for completeness or accuracy
The Battery Materials business will become a significant earnings
contributor to the BASF Group
>€1.5 billion sales

by 2023 >10% >30% ~€3.5–4.5 billion
market share EBITDA bsi margin capital expenditure
>€7 billion sales targeted (excl. metals) 2022–2030
by 2030
 Continue to ramp up existing sales of the CAM portfolio and secure further commercial outlets
 Build on customer proximity with our domestic production footprint to meet customer needs
 Realize new business opportunities and further cost reductions with continued product development
 Utilize our broad knowledge of the industry to support the ongoing transformation of the sector

BASF Battery Materials – best-in-class CO2 footprint
and closing the loop
 Broad CAM product offering  Secure supply and backward

 Strong IP position integration
CAM Metals  High sustainability standards
 Extensive R&D capabilities
Formula for
success
 Unique expertise in PCAM chemistry  Recycling capabilities and

PCAM Recycling closed loop offering
 Make-or-buy optionality with a global
production footprint  Up to 25% CO2 reduction of
our CAMs through recycling
material
The battery materials and recycling business is set to become one of the key
growth engines in BASF’s portfolio, establishing a leading and profitable position

BASF CEO Roadshow UK

Uploaded by

Copyright:

Available Formats

BASF CEO Roadshow UK

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BASF CEO Roadshow UK

Uploaded by

Copyright:

Available Formats

Capital Market Story

Dr. Martin Brudermüller, Chief Executive Officer

2 November 2023 | BASF Capital Market Story

3 November 2023 | BASF Capital Market Story

Global trends provide opportunities for growth in the chemical industry

China the largest chemical market:

Chemicals Materials Industrial Solutions

Surface Technologies Nutrition & Care Agricultural Solutions

Value chains Markets Digitalization

7 November 2023 | BASF Capital Market Story

South America, Africa, Middle East Selected sites

BASF sales by industry 2022

10 November 2023 | BASF Capital Market Story

 Construction activities stepped up, with currently more

Attractive financing conditions in China

11 November 2023 | BASF Capital Market Story

BASF and Yara evaluate low-carbon blue ammonia project

12 November 2023 | BASF Capital Market Story

 BASF is the first company to establish a co-located battery

13 November 2023 | BASF Capital Market Story

14 November 2023 | BASF Capital Market Story

3,30 3,30 3,40 3,40

1 Dividend yield based on share price at year end

16 November 2023 | BASF Capital Market Story

 BASF stands by its strategic goal of selling its 72.7% share in

17 November 2023 | BASF Capital Market Story

18 November 2023 | BASF Capital Market Story

 Competitive advantages through flexible Verbund concept

 Strategic focus on local production for local markets and We create

 Powerful innovation across a broad range of technologies to provide

 Diverse team of committed, capable and creative employees

 Long-term shareholder value creation and attractive dividend

19 November 2023 | BASF Capital Market Story

20 November 2023 | BASF Capital Market Story

Financial figures Q3 2023 Change Q1–Q3 2023 Change

Sales 15,735 -28.3 53,031 -22.0

EBITDA before special items 1,545 -33.5 6,354 -32.1

EBITDA 1,363 -39.6 6,081 -35.0

EBIT before special items 575 -57.3 3,514 -46.0

EBIT 394 -69.6 3,235 -49.7

Net income from

Net income -249 . 1,812 -57.1

22 November 2023 | BASF Capital Market Story

Q3 2023 Q1–Q3 2023 Q3 2023 vs. Q3 2022

23 November 2023 | BASF Capital Market Story

Balance sheet September 30, 2023, vs. December 31, 2022

Accounts 12,1 Other

Sales Q3 2023 vs. Q3 2022 EBIT before special items

Sales development Volumes Prices Portfolio Currencies

25 November 2023 | BASF Capital Market Story

Sales Q3 2023 vs. Q3 2022 EBIT before special items

Sales development Volumes Prices Portfolio Currencies

26 November 2023 | BASF Capital Market Story

Sales Q3 2023 vs. Q3 2022 EBIT before special items

Sales development Volumes Prices Portfolio Currencies

27 November 2023 | BASF Capital Market Story

Sales Q3 2023 vs. Q3 2022 EBIT before special items

Sales development Volumes Prices Portfolio Currencies

28 November 2023 | BASF Capital Market Story