BASF : Deutsches Eigenkapitalforum 2025, Frankfurt Handout Stefanie Wettberg

Winning Ways strategy

September 2025

Capital Market Story

One year

Winning Ways

strategy

New direction for portfolio steering, capital allocation and performance culture launched in September 2024

The past 12 months have shown that we are focusing on the right topics with our strategy

We are making significant progress and are concentrating on those things that are in our control

2 November 2025 | BASF Capital Market Story

2 November 2025 | BASF Capital Market Story

Our ambition: To be the preferred chemical company to enable our customers' green transformation

Strategic levers

Focus

Strengthen the core and unlock the value of our standalone businesses

Enhance our footprint in high-growth markets

Allocate capital based on clear

portfolio roles

Accelerate

Empower our businesses through streamlined and differentiated group steering

Simplify our organizational structure

Harness AI to advance productivity

and accelerate innovation

Transform

Shape value-based transformation toward a sustainable product portfolio

Drive sustainable-future solutions and net-zero measures at scale

Make European operations more

competitive

Win

Drive change toward a winning culture

Step up accountability, speed and performance orientation

Foster a mindset of continuous

improvement

Delivering profitable growth and value creation

3 November 2025 | BASF Capital Market Story

~10%

--

ROCE 2028

>€12bn

--

Free cash flow, cumul. 2025-2028

We create the foundation for attractive shareholder distributions

€10bn-€12bn

--

EBITDA before special items 2028

Corporate financial targets1

1 Current portfolio, including Other

Maintain financial strength

Capital allocation framework

Shareholder distributions via dividends and share buybacks 2025-2028:

At least

€12

billion

At least

€2.25

annual dividend

per share

Overall distribution

on the level of the last years

Sharpen the portfolio

Grow with high capital efficiency

4 November 2025 | BASF Capital Market Story

We aim to achieve our €12 billion free cash flow target by reducing capex, realizing cost savings and optimizing working capital

Payments made for property, plant and equipment and intangible assets

Operating cash flow

Free cash flow

2028

2027

2026

2025

2024

2023

Free cash flow

5-year average (2020-2024)

Billion €

Operating cash flow1

~€29 billion

Payments made for property, plant

and equipment and intangible assets1

~€16 billion

Free cash flow1

>€12 billion

1 Cumulative 2025-2028

5 November 2025 | BASF Capital Market Story

We are realizing the benefits of earlier investments and bringing down capex below depreciation as of 2026

Payments made for property, plant and equipment and intangible assets (billion €)

2019 2020 2021 2022 2023 2024

• Following peak in 2024, further reduce capex (including intangibles) in 2025 to 2028 to ~€16 billion versus ~€17 billion as announced in September 2024

• Drive increased asset utilization of existing capacities to support volume growth

• Going forward, >50% of capex to be allocated to growth regions and businesses and the green transformation

  2025 2026 2027 2028

  Depreciation level 2026-2028

  6 November 2025 | BASF Capital Market Story

  
  
  

  We are on an accelerated path to achieve our targeted ~€2.1 billion cost savings by the end of 2026

  Billion €

  0.6

  0.4

  1.0

  0.5

  ~1.6

  ~0.4

  ~2.1

  ~0.5

• Implementation of the cost savings programs in full swing

• We accelerated the cost savings programs and expect €1.6 billion in annual cost savings by year-end 2025

• Cumulative one-time costs of

  ~€1.8 billion by year-end 2026, of which ~€1.2 billion incurred as of September 30, 2025

• Continuous cost reduction measures

  By Dec. 31,

  2023

  By Dec. 31,

  2024

  By Dec. 31,

  2025

  By Dec. 31,

  2026

  beyond 2026 in view of cost inflation by

  ~2% per year

  Expected annual cost savings (run rate) Expected one-time costs
  
  

  7 November 2025 | BASF Capital Market Story

  
  
  

  We are decisively executing the

  €1 billion Ludwigshafen Cost

  Improvement Program by 2026

  Project examples

  Measures for selected

  production assets to improve site profitability

  Structural adjustments

  in non-operations and site services

  Savings in

  site procurement

  Continuous productivity gains pursued after successful program completion

  Selected plant

  closures

  • Earlier measures: adipic acid, cyclo-dodecanone and cyclopentanone

  • New measure:

hydrosulfite

Consolidation of central maintenance into one lean unit; process optimization and reduction of interfaces along the entire process

Highly competitive processes for awarding contracts powered by game theory, enhancing cost efficiency in our collaboration with suppliers

8 November 2025 | BASF Capital Market Story

8 November 2025 | BASF Capital Market Story

Core and standalone businesses have different value creation levers

Agricultural Solutions

Coatings

Battery Materials

Environmental Catalyst and Metal Solutions

Nutrition & Health

Performance

Chemicals

Monomers

Intermediates

Care Chemicals

Dispersions & Resins

Performance Materials

Petrochemicals

Agricultural Solutions

Surface Technologies

Nutrition & Care

Industrial Solutions

Materials

Chemicals

Core businesses

EBITDA bsi 2024 2028 target1

€5.4 billion ~€7 billion to ~€9 billion

Standalone businesses

EBITDA bsi 2024 2028 target1

€3.0 billion ~€3.5 billion to ~€4 billion

1 Excluding negative result of Other; assuming mid to upcycle conditions in core businesses

9 November 2025 | BASF Capital Market Story