Inauguration of the

BASF Asia Pacific

Innovation Campus

1

BASF Press Conference

November 6, 2012

Pudong, Shanghai

Driving Innovation in Asia Pacific

Dr. Martin Brudermueller

Member of the Board of Executive Directors, BASF SE,

responsible for Asia Pacific

We create chemistry for a sustainable

future

3 10/25/2012

Nine billion people in 2050 but only one earth

Resources, Environment &

Climate

Food & Nutrition Quality of life

Chemistry as enabler

Megatrends create demand for chemicals

in Asia Pacific

Asia Pacific is the fastest growing chemical market, outpacing GDP

CAGR

World: 4.0%

Asia: 6.2%

41%

16%

22%

21%

Source: BASF

Real chemical production ex. pharma in USD trillion

16%

17%

17%

50% 2.1

3.1

2010

2020

Asia Pacific Europe Rest of World North America

GDP growth 2010-2020

• Global : ~3%

• Asia: ~4.8%

BASF will participate actively in Asia

Pacific chemical market growth

BASF aims to grow two percentage points above chemical market

5

13 29

0

20

40

60

80

100

120

140

2010 2020 (target)

BA

SF

sale

s in b

illio

n €

Total

To customers in AsiaPacific64

115

Asia Pacific – a global R&D hub by 2020

Source:

Booz & Company

€1bn Projected R&D spend of top 184 spending companies in 2020 Domestic spending 2020, CAGR 2007-2020

€3bn

€15bn

€25bn

~ €200bn

~ 6% CAGR

Brazil

United

States

Mexico

Canada

Spain Italy

Poland

Egypt

Finland

U.K.

France

Israel

Hungry Serbia

Czech

Belgium

Netherlands

Denmark

Sweden

Malaysia

Singapore

Japan

India

Philippines

Russia

China

Thailand

Vietnam

Taiwan

Australia

~ €190bn

~ 6% CAGR

~ €240bn

~ 9% CAGR

Ireland Germany

Switzerland Austria

6

BASF Asia Pacific innovation network is a

strong foundation for growth

Regional and local R&D:

Mumbai

Development & technical

(especially for customer

support)

Locations: Mangalore,

Tokyo, Taipei, Guilin,

Guangzhou, etc.

Global scope

High end research

Focus on new

technologies

Locations:

Singapore, Osaka, Perth,

Mumbai

Part of BASF’s global

R&D network

Regional scope

Many businesses

represented

Co-located with

production

Location: Shanghai

BASF Innovation Campus Asia Pacific

Regional R&D, Technical Centers

Broad R&D scope throughout the Asia Pacific region

R&D Centers

7

Growth requires innovation from Asia, for

Asia

World’s softest TPU

100% Asian innovation:

idea from BASF Japan,

developed in China

Combination of products

from two BASF

competencies

Lightweight solution

developed in India

Light stabilizer for

greenhouse films

prevents UV degradation

Tailored for the Asian

market

Resources and climate Food and nutrition Quality of life

Ellastolan® Soft Tinuvin® XT 100 Thermocrete™

8

BASF Innovation Campus Asia Pacific

9

Part of BASF’s global R&D network

Platform for the entire Asia

Located at Greater China headquarters site

Investment: ~ €55 million

Around 450 R&D professionals

Research on advanced materials and polymers

Close cooperation with materials scientists, technical experts, business colleagues and customers

Strengthening our R&D platform in Asia

Pacific to accelerate growth

Inauguration of the

BASF Asia Pacific

Innovation Campus

11

BASF Press Conference

November 6, 2012

Pudong, Shanghai

Research Verbund

around the globe

Dr. Andreas Kreimeyer

Member of the Board of Executive Directors, BASF SE

Research Executive Director

12

1993 Opus

Fungicide

Important Innovations in Chemistry

From Indigo to Plant Biotechnology

13

1930 Polystyrene

1897 Indigo

1913 Ammonia

1937 Poly-

ethylene

1951 Styropor

1963 Vitamin A

1990 Vitamin B2

2008 Drought- tolerant

Corn

1900 1950 2000

1903 Indan- threne Blue

1923 Methanol and Urea

1870 Alizarin

1931 PVC

1982 Citronellal

1974 Basagran Fungicide

Synthetic

Dyes Fertilizers

Plastics/

Foams

Health Care & Nutrition ?

Fungicides

1935 Magnetic

Tape

Targeted €7 billion of EBITDA

from innovations in 2020

Sales and EBITDA from innovations

(billion €)

Sales from innovations launched within last 5 years

Sales from innovations launched within last 10 years

EBITDA from innovations launched within last 5 years

EBITDA from innovations launched within last 10 years

2015 2020

14

Targeted spending of ~ 3% of sales (excluding Oil & Gas)

p.a. on R&D

~10

~30

~2.5

~7

Innovation at BASF

R&D at a Glance

Thanks to our close cooperation with numerous partners from science and business

worldwide, we have created an international and interdisciplinary Know-how Verbund.

Science Relations and Innovation Management

BASF Future Business

BASF Research Verbund

Biological & Effect Systems Research

Process Research & Chem. Engineering

Advanced Materials

& Systems Research

Plant Science

Universities

Partners in industry

Research institutions

High-tech joint ventures

Plastics

Functional Solutions

Performance Products

Chemicals

Agricultural Solutions

Oil & Gas

Corporate Research

3

5

4

2

6

7

1

9%

12%

21%

8%

26%

1%

23%

approx.

€1.61 bn

1

2

3

4

5

6

7

Global Know-how Verbund

Inside BASF and with Partners

BASF Standort

SEOUL

SINGAPORE

SHANGHAI

MUMBAI

HEIDELBERG

STRASBOURG

CAMBRIDGE

GUARATINGUETÁ

WYANDOTTE

ISELIN

RTP

DÜSSELDORF

BASEL

R&D Cooperations

BASF R&D Sites

KARLSRUHE LUDWIGSHAFEN

Blue-print for future global cooperations

Global Models of R&D The BASF Initiative at Harvard University

Goal:

Facilitate BASF’s access to an excellent know-how

and scientific network in North America

How we mastered the challenge

Define common interests

Show commitment on both sides

Build trust and cultural acceptance

between partners

Outcome:

High visibility at Harvard,

several projects transferred to BASF

Connected with

Chinese Academic Community

The “We create Chemistry” Strategy Bringing Innovation to a Global Level

Progress:

Global Project management for R&D since 2004 (PhaseGate)

BASF is established in all regions with R&D, marketing & sales, application labs, production sites, cooperations etc.

Examples:

– white biotechnology and microbiology research center in Tarrytown, N.Y (Feb. 2012)

– new Innovation Campus Asia Pacific in Shanghai

By 2020, BASF wants to conduct 50 percent of its R&D outside of Europe to gain local access to customers, talent and innovation centers.

Today, the majority of R&D and its cooperations with companies, universities and institutes is still concentrated in Europe

Goal: increase presence in the American and Asian markets

摸着石头过河

Inauguration of the

BASF Asia Pacific

Innovation Campus

21

BASF Press Conference

November 6, 2012

Pudong, Shanghai

Development of BASF in Greater

China

Johnny Kwan

Chairman of the Greater China Country Board

BASF Greater China

From dye sales to an integrated Verbund set-up

– BASF is committed to Greater China

23

28 wholly owned subsidiaries

17 joint ventures

40 production sites

51 sales offices

Approximately 7,770 employees

Sales* in 2011: More than €6.5 billion

4 R&D sites

*By location of customer; Data as of December 2011 #Some sites are not shown due to scale

Broad range of BASF expertise contributes to

China's development

Construction Automotive

Paint &

Coating

Packaging Pharma

Mining Food &

Agriculture

Electronic &

Electric

Wind Textile

Page 24

25

Pudong integrated site –

We add value as one company

People Verbund

Customer Verbund

Technology Verbund

Production

Verbund

26

Evolution of Pudong site -

From production to integrated site and

Headquarters of Greater China

All business and functional units under

one roof

Integrated approach to make customers

more successful

Contribute to chemical industry

transformation in China

Deepen collaborations with research

institutes, universities and R&D

organizations

Committed to sustainable development

in China

BASF research cooperation in China

Research cooperation projects with more than 90 different research

groups in China

Areas of research

– advanced material science - nanotechnology

– organic synthesis - industrial catalysts

– industrial biotechnology - plant science

– chemical engineering and technology

27

Sustainability as future growth driver

28

29