BASF : Virtual Roadshow UK & Germany

Capital Market Story

NovaFlex SharkSkin	Dr. Dirk Elvermann, CFO
by BASF	Virtual Roadshow UK &	Germany
	May 3, 2024

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 in particular those discussed in Opportunities and Risks on pages 173 to 183 of the BASF Report 2023. BASF does not assume any obligation to update the forward-looking statements contained in this presentation above and beyond the legal requirements.

2 May 2024 | BASF Capital Market Story

Agenda

1		2		3
At a glance		Q1 2024 reporting		Measures to increase
				competitiveness

4		5		6
Pushing the transition to a		Unique position to capture		Battery materials driving
sustainable economy		growth in Asia		electromobility and growth

3 May 2024 | BASF Capital Market Story

Unique position to deliver long-term value

Unique Verbund concept

• 6 Verbund sites globally
• 234 production
  sites worldwide in total
• 5.7 million metric tons of CO2 avoided globally in 2023

Industry-leading innovation platform

• €2.1 billion R&D expenses in 2023
• ~10,000 employees in R&D
• Sales of >€10 billion in 2023 with products launched during last 5 years

Strong and expanding local presence in fast growing Asian market

• 2 Verbund sites already; one additional Verbund site currently under construction
• ~70 production sites
• €17.5 billion1 sales in 2023

Creating value to society and contributing to a sustainable development

• CO2 emission targets:

• 25% reduction
  of absolute Scope 1 and 2 emissions by 2030 (compared with 2018)
• 15% reduction
  of specific Scope 3.1 emissions by 2030 (compared with 2022)

• We aim to achieve net zero CO2 emissions2 by 2050

Progressive dividend policy

• Practice to increase the dividend per share each year, or at least maintain it at the previous year's level
• Dividend of €3.40 per share for 2023

4	May 2024 | BASF Capital Market Story	1	Sales in Asia Pacific by location of customer. Only includes sales from BASF entities fully consolidated according to IFRS 10/11
2	Scope 1, Scope 2 and Scope 3.1

The BASF Group's segments

Chemicals

The Chemicals segment supplies BASF's other segments and customers with basic chemicals and intermediates.

• Sales 2023: €10,369 million
• EBITDA before specials items 2023: €1,167 million

Surface Technologies

The Surface Technologies segment provides chemical solutions for surfaces and automotive OEM coatings, as well as battery materials and catalysts.

• Sales 2023: €16,204 million
• EBITDA before specials items 2023: €1,520 million

Materials

In the Materials segment, we produce advanced materials and their precursors for the plastics and plastics processing industries.

• Sales 2023: €14,149 million
• EBITDA before specials items 2023: €1,650 million

Nutrition & Care

The Nutrition & Care segment produces ingredients and solutions for consumer applications such as human and animal nutrition, and home and personal care.

• Sales 2023: €6,858 million
• EBITDA before specials items 2023: €565 million

Industrial Solutions

The Industrial Solutions segment develops and markets ingredients and additives for industrial applications.

• Sales 2023: €8,010 million
• EBITDA before specials items 2023: €965 million

Agricultural Solutions

The Agricultural Solutions segment is an integrated provider of seeds, crop protection and digital solutions for the agricultural sector.

• Sales 2023: €10,092 million
• EBITDA before specials items 2023: €2,270 million

5

May 2024 | BASF Capital Market Story

Other not depicted on the slide: Sales 2023: €3,220 million, EBITDA before special items 2023: -€466 million

We operate close to our customers in all regions worldwide

Europe
Sales (million €)		26,022
Employees		67,562

North America
Sales (million €)		18,833
Employees		16,060

South America, Africa, Middle East

Sales (million €)		6,527
Employees		7,176

BASF sales by industry 2023

Direct	> 20%		Chemicals and plastics | Transportation (respectively)
customers
10-20%	Agriculture | Consumer goods (respectively)
		< 10%		Construction | Electronics | Energy and resources | Health and nutrition (respectively)

Asia Pacific
Sales (million €)	17,520
Employees			21,193

Selected sites

Verbund sites

Planned Verbund site

6

May 2024 | BASF Capital Market Story

Sales 2023 by location of customer

Priorities for the use of cash

1	2	3	4
Organic	Progressive	Portfolio	Share
growth	dividend	management	buybacks

• Capex budget of €6.2 billion for 2024
• Around €2 billion in R&D expenses per year

• Practice to increase the dividend per share each year, or at least maintain it at the previous year's level
• Strong balance sheet and high equity ratio1 support dividend policy

• Strengthen portfolio through selective M&A opportunities while maintaining price discipline
• Focus the portfolio with continued pruning measures

• Share buybacks are part of our toolbox but currently not being used
• Between January 2022 and February 2023 own shares were repurchased for ~€1.4 billion

7

May 2024 | BASF Capital Market Story

1 As of March 31, 2024: 47.2%

Continued strict management of capital expenditures

Overall capex budget

Billion €, 2024-2027
Capex 2024 + 2025	~ -40%
6
		Capex 2026 + 2027
4
2
0
2024	2025	2026	2027

Capex budget by type of investment Billion €, 2024-2027

Investments in ongoing businesses

€19.5 billion,

thereof €6.2

billion in 2024

Investments in net-zero transformation

Growth projects

Zhanjiang Verbund site and battery materials

8 May 2024 | BASF Capital Market Story

BASF's industry-leading innovation platform ensures long-term organic growth

R&D expenses 2023

Corporate research, Other 17%

Agricultural Solutions 42%

€2,130 million

Chemicals

4%

Materials

9%

Industrial Solutions

7%

Surface Technologies

14%

Nutrition & Care

7%

Key facts 2023

• R&D expenses to sales ratio 3.1%
• Commitment to R&D with annual spending of ~€2 billion
• ~10,000 employees in R&D
• ~1,000 new patents filed in 2023
• Research Verbund: Academic Research Alliances are complemented by cooperations with
  ~280 universities and research institutes
• >€10 billion sales generated from R&D activities with products launched during last 5 years
• Peak sales potential of BASF's Agricultural Solutions innovation pipeline of >€7.5 billion between 2023 and 2033

9 May 2024 | BASF Capital Market Story

Attractive shareholder return - also in challenging times

Dividend per share

€

4,00
				3,10	3,20	3,30	3,30	3,40	3,40	3,40
			3,00
		2,90
3,00	2,80

2,00

1,00

0,00
	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
Yield1	4.0%	4.1%	3.4%	3.4%	5.3%	4.9%	5.1%	5.5%	7.3%	7.0%

Key facts 2023

• Dividend of €3.40 per share
• Total payout of €3.0 billion2,
  90% of which is covered by our free cash flow in 2023
• Dividend yield of 7.0% based on the share price of €48.78 at year end 2023

10 May 2024 | BASF Capital Market Story	1 Dividend yield based on share price at year end
2 Based on the 892,522,164 shares outstanding as of December 31, 2023