BASF India Ltd — Investor Presentation 2020

Aug 24, 2020

BASF India Limited, Mumbai - 400 051, India

August 24, 2020

The Market Operations Department BSE Limited, Phiroze Jeejeebhoy Towers Dalal Street, Mumbai 400 001

Name of the Company : BASF INDIA LIMITED Security Code No. : 500042

Dear Sir/Madam,

Re: Analyst Meeting of BASF India Limited.

Further to our letter dated August 21, 2020 on the above-mentioned subject, we enclose herewith the presentation made by the Company at the Analysts' meeting held today.

Please treat the above information as intimation under Regulation 30 of the Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.

Thanking You.

Yours faithfully, For BASF India Limited

Pradeep Manjunath Chandan Digitally signed by Pradeep Manjunath Chandan Date: 2020.08.24 18:34:49 +05'30'

Pradeep Chandan Pankaj Bahl Director – Legal, General Counsel (South Asia) Manager- Company Secretarial & Company Secretary

Cc: Listing Compliance, National Stock Exchange of India Limited, Exchange Plaza, C-1, Block-G, Bandra Kurla Complex, Bandra –(East). Mumbai-400051.

PANKAJ R BAHL Digitally signed by PANKAJ R BAHL Date: 2020.08.24 18:35:47 +05'30'

Registered Office BASF India Limited The Capital, 'A' Wing, 1204-C, 12th Floor, Plot No. C-70, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051, India

Tel +91 22 6278 5600

CIN - L33112MH1943FLC003972

www.basf.com/in

Analyst Meet

Narayan Krishnamohan Managing Director, BASF India Limited

Narendranath J. Baliga Chief Financial Officer, BASF India Limited

Mumbai, 24.08.2020

Only matters in the public domain can be subject matter of discussion in this meeting

As a matter of policy, we do not provide any forecast about the future business situation

We do not comment or give guidance on future results or business outlook

Forward looking statements

Cautionary

Note

We remain committed to EHS and Sustainability

Driving high standards in EHS & Sustainability on all fronts

Emphasis on EHS Standards

Global Safety Days 161 activities in India across sites & offices

Agricultural Solutions team - 1st Runner up of Safety Champions awards in BASF APAC

Reinforcing Sustainability Quotient

Reduce, Reuse, Recycle Enhanced water storage & saving capacities at Dahej & Mangalore sites

Invested in solar power at Mangalore site

Sharing best practices & winning accolades Sessions on Responsible Care & Sustainability, Fire fighting trainings for colleges

ICC awards for Responsible Care, Nicer Globe, CII awards for EHS standard in manufacturing

Engaging with customers & industry on sustainability Collaboration with customers like Colgate-Palmolive,

Organized Battery Tech Day, etc.

Sustainability Partner for India Economic Conclave 2019 highlighting role of chemistry

FY19-20: a challenging year with economic slowdown, declining GDP COVID-19 further dents growth. June, July 2020 show revival signs amid easing of lockdown

Despite challenges, our diverse portfolio and customer focused projects enabled profitable growth during FY 2019-20

Expanding production capacity at our sites Focus on safety and driving efficiencies continued

Expansion of Cellasto® manufacturing capacity at Dahej

Doubling production capacity of Polymer Dispersions at Dahej

Digitalization for cost savings, increasing production & efficiency

• Dahej- Cellasto plant
• Mangalore- Coatings plant

Inauguration of Defoamer plant for paints at Mangalore

P-Mac 3.3 Automatic Spray machine installed in Technical Support Lab at M'lore

• Quality certification & audits for various sites
• International Automotive Task Force certification
• Dahej automotive coolants plant audited & approved for commercial

production

We continue to optimize our business portfolio to strengthen competitiveness

• Complementary product portfolio, well known Technyl® brand enhances growth opportunities
• Wider distribution network, more co-creation opportunities
• ONE strong team in engineering plastics
• Consideration amount Rs. 3,029 million; Enterprise value Rs. 2,189 million after netting of cash balance of Rs. 840 million
• FY19-20 reported Revenue Rs.2,756 million; EBIT Rs.431 million

Acquisition of BASF Performance Polyamides Divestiture of OBA & Construction Chemicals business

• Divestiture of stilbene based Optical Brightening Agents to Archroma
• Consideration of Rs. 335.1 million
• Business transfer completed on December 6, 2019
• Divestiture of Construction Chemicals to Master Builders Solutions
• Consideration of Rs. 5,951.6 million
• Business transfer completed on July 1, 2020

Driving customer collaboration @Creation Center inaugurated in May 2019

40 customers visited Engaged in >50 topics

Technology driving efforts to enhance processes & customer outreach

Successful roll out of Net Promoter Score (NPS)

• NPS enables feedback, suggestions from customers to address pain points. See positive improvement in performance scores
• Internal focus on promoting tools like Digital Invoicing, Business Process Automation etc. to enhance productivity

Implementing digital channels across businesses

• ~3.4 lac followers on BASF Agricultural Solutions Facebook page. Launched xarvio mobile scouting app, active use of Whatsapp, Youtube. Stewardship animation video garnered 25 lacs + views.
• Virtual workshops with customers & key stakeholders of Performance Materials, Care Chemicals business

Segment Revenue breakup FY 2019-20

Coatings

Segmental performance FY 2019-20

Revenue Rs. in million 9,333 11,140 18-19 19-20 +19% 662 612 18-19 19-20 -7% Results Rs. in million Agricultural Solutions 16,462 16,923 18-19 19-20 +3% Materials -860 -374 18-19 19-20 +57%

• Good growth with diversified portfolio, above normal monsoon

• Profitability marginally impacted by higher input costs

• Modest growth owing to shrinking commodity prices, lower demand in transportation segment

• EBIT improved significantly due to declining cost of raw materials and better realisation as compared to the input costs

Segmental performance FY 2019-20

Revenue Rs. in million +4%

Industrial Solutions

Results

Rs. in million

• Increase in revenue driven by capacity expansion at Dahej, right product mix & merchandize volumes
• Profitability maintained despite high volatility in the raw material prices
• Growth in revenue mainly from increased merchandise volumes
• Improved profitability due to better product mix & high focus on margins

Segmental performance FY 2019-20

Revenue Rs. in million

7,581 14,651 18-19 19-20 +93% Nutrition &

Care

-214

Results

-312

Rs. in million

+31%

• Higher volumes from merchandize business driving sales growth

• Improvement in EBIT due to better pricing strategy

• Petrochemicals witnessed demand in downstream business. Pharma, agrochemicals drove growth in Intermediates

• Higher absolute margins from increased volumes

We achieved strong profitable growth in FY 2019-20

In Rs. million

PBT bEI: Profit before tax before exceptional items

The charts are for comparison purpose & not to scale

Improvement in key ratios: FY 2019-20

• Control on working capital with stringent monitoring

• Operational cash flow increased by Rs.6,310 million

• Borrowings reduced to Rs.6,630 million (PY: Rs.9,122 million)

• Improved RoCE from better margins & optimum capital utilization

Current Ratio= Current assets / Current liabilities Debt Equity Ratio = Total Borrowings/ Total Equity RoCE (Return on Capital Employed) = EBIT bEI / (Equity + Borrowings)

The charts are for comparison purpose & not to scale

Q1 FY 20-21

COVID-19 pandemic

We remain focused on employee safety and active customer collaboration in a challenging business environment

Ensuring safe start up and enhanced safety measures for our employees

Phased wise approach to resuming office

Download Aarogya Setu mobile app

Employee Health & Safety survey

Temperature screening, masks, sanitization, social distancing, etc.

COVID-19: A challenging Q1/FY21

BASF India Limited Business performance: Q1 results (Apr–Jun'20)

	Trend	 Positive growth for Agro, Nutrition & Care segments  Slowdown impact on businesses from Automotive, Construction and Consumer Durable Goods industry
		 Margins recovering with increasing plant utilisation, post relaxation of lockdown

BASF India Limited

Business performance: Q1 results (Apr–Jun'20) Revenue development by segment

In Rs. million

The charts are for comparison purpose & not to scale

BASF India Limited

Business performance: Q1 results (Apr–Jun'20) Results development by segment

Margins improved for Agro, Nutrition & Care and Chemicals segments, even though lower demand from key customer industries impacted margins for other segments

The charts are for comparison purpose & not to scale

FY 20-21 – Overcoming challenges in an uncertain environment

Uncertain external environment

• COVID-19 Scenario
• Geopolitical tension
• Currency depreciation

Growth hurdles

• Sluggish demand in key sectors
• auto, construction, consumer
• Restrictive business environment

Business Challenges

• Credit risk management
• Supply Chain: higher costs,

delayed clearances

Labor availability

Business emphasis going forward

Focus on cost control – optimize working capital & credit management, supply chain

Margin management & resource optimization – improve efficiency, maintain margins

Topline growth – winning customers & continue to drive profitable growth

Employee Connect: Ensuring a motivated and healthy workforce with Employee Assistant Programs, webinars, trainings, workshops by experts

Representation @Stakeholders: Drive industry voice & advocacy at industry forums, Govt. ministries