BASF Petrochemicals

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Petrochemicals Heart of the VerbundDr. Werner Prtorius President Petrochemicals DivisionSeptember 2005

DisclaimerThis presentation contains forward-looking statements under the US Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections of BASF management and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict and are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause the actual results, performance or achievements of BASF to be materially different from those that may be expressed or implied by such statements. Such factors include those discussed in BASFs Form 20-F filed with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking statements contained in this presentation.


Key Facts BASF is the #1 Chemical Company worldwide The unique Verbund concept is key to our strategy Petrochemicals are the heart of the Verbund Its major role is to provide reliable and secure supply for the most important value chains of BASF Products used in all BASF divisions apart from Inorganics, Agricultural Products and Oil&Gas


BASFs Balanced PortfolioPetrochemicals a Division in the Chemicals Segment

Performance Products

21% 19% 11%Plastics

Chemicals Petrochemicals Inorganics Intermediates

28% 14% 14%Oil & Gas Agriculture & Nutrition

2004 Group sales*: 37.5 billion EUR*including other activities 2004: 1.6 billion EUR (4%)4

Sales & EBIT DevelopmentSales in million EUR8.000

EBIT indexed350

Average annual growth rate 2000-2004: GDP: 2.4%

6,9357.000 6.000 5.000 4.000 3.000 2.000 1.000 0 2000 2001 2002 2003 2004 100 50 0 300

5,372 4,886 3,879 3,951

Chemical Prod.*: 2.3%250 200 150

BASF Petrochemicals Sales:


Drivers for EBIT improvement: - High capacity utilization - Higher margins* Without Pharma

Total Sales (internal and external)5

EBIT (index 2000 = 100)

Sales Distribution PetrochemicalsInternal and External Sales by Business Unit

Supply Driven Focus on competitive supply to the Verbund External sales to optimize capacity utilization State-of-the-art technology

Market driven Major market player Proprietary technology

59% 14%Solvents

9%Cracker Products Plasticizers


3%Industrial Gases

Alkylene Oxides & Glycols

2004 total sales: 6.9 bn EUR6

Petrochemicals Heart of the Verbund

Functional Polymers 15% Intermediates 18%

Coatings 1%

Fine Chemicals 2%

Performance Chemicals 17%

2004 Internal Sales Petrochemicals: 2.7 bn EUR

Others 1%

Performance Polymers 1%

Styrenics 35%

Polyurethanes 10%


Petrochemicals and the BASF Verbund

Petrochemicals Cracker Products Ethylene Propylene Butadiene Benzene Toluene ...

Alkylene Oxides Ethylene Oxide Propylene Oxide

Glycols Ethylene Glycol Propylene Glycol

Solvents Oxo- & higher Alcohols Glycolethers

Value Chains of the BASF Verbund deliver ~ 8000 Products

e.g. Plasticizers8

1 | Cracker Products 2 | Alkylene Oxides & Glycols 3 | Plasticizers & Solvents 4 | Key Statements

Naphtha-based Cracker Provides Full Slate of Cracker Products

t/t EthyleneFeedstock Ethylene Propylene Butadiene Benzene Toluene

Typical Cracker OutputEthane (1.3) 1.0 0.02 0.03 0.01 0.0 Naphtha (3.0) 1.0 0.55 0.17 0.25 0.04

BASF Demand2004 1.0 0.97 0.13 1.52 0.11

BASFs broad demand portfolio for cracker products does not fully match Naphtha-based cracker output

Source: Ullmann, BASF10

Production/Demand Balance of BASF Cracker ProductsGlobal Positionhigh

BASF is a net buyer of benzene and propylene BASF is a net seller of ethylene - however, very low representation in the ethylene merchant market (