BASF India Ltd — Investor Presentation 2021

Mar 5, 2021

BASF India Limited, Mumbai - 400 051, India

March 5, 2021

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 / Fund Managers Meeting of BASF India Limited.

Further to our letter dated March 3, 2021 on the above-mentioned subject, we enclose herewith the presentation made by the Company at the Analyst / Fund Managers 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: 2021.03.05 17:46:12 +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: 2021.03.05 17:47:35 +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

Analysts / Fund Managers Meeting

Narayan Krishnamohan Managing Director, BASF India Limited

Narendranath J. Baliga Chief Financial Officer, BASF India Limited

Mumbai, 05.03.2021

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

Emphasis on safe operations, people and processes is at the core of everything we do

A recovery from the pandemic – health & economy

Demand recovery

• Growth-oriented budget
• **~ 15 mn + vaccinated**

Economy on a strong trajectory

Record GST collection

Record shipments / production of cars

Agriculture & Allied - 3.4 % growth

Consistent long-term effort helped us achieve strong performance

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

Challenging Q1 FY 21 Strong bounce back in Q2 & Q3 FY 21

Business Management

• • Topline growth
  • Margin management
  • Cost control & resource optimization

Stakeholder Engagement

Customer

BASF India Limited QoQ performance (Consolidated) Outperformed in each quarter after a COVID impacted Q1'20-21

BASF Performance Polyamides acquisition accounted as common control transaction effective February 1, 2020

The charts are for comparison purpose & not to scale

In Rs. Crs

Our diverse portfolio, enhanced engagement across stakeholders and sustained efforts of process improvement helped us perform stronger

Process efficiency & customer outreach, enabled by Technology

Successful roll out of Net Promoter Score (NPS)

• Tools such as NPS, Salesforce enabling improvement in customer processes
• Internal focus on promoting digital tools and solutions like Business Process Automation, Robotic Process Automation, etc. to enhance productivity

Implementing digital channels across businesses

• Virtual ideation and connect sessions with ~20 customers at the Creation Center
• 2 Lac+ farmers participated in Live Digital Meetings & Field days. Launched Gamification for product awareness & sales lead. AP India YouTube channel launched for farming community.

Segment Revenue breakup Apr-Dec'20 (9 months) - Consolidated

Agricultural Solutions

Materials# Performance Materials Monomers

Industrial Solutions Dispersions Performance

Surface Technologies

Coatings

Catalysts

Construction Chemical*

Nutrition & Care Care Chemicals

Nutrition & Health

BASF Performance Polyamides acquisition accounted as common control transaction effective February 1, 2020

*Construction Chemical business was divested effective 1st July 2020

#Materials segment includes revenue of a subsidiary

Chemicals Petrochemicals Intermediates

Apr-Dec 20: Resilient performance (consolidated)

Business portfolio optimization to strengthen competitiveness

Divestiture of Construction Chemicals business

• Consideration of Rs.595 Crs
• Profit on divestiture Rs.465 Crs
• Business transfer completed on July 1, 2020
• Revenue for Apr to Jun'20: **Rs.50 Crs (**FY 19-20: Rs.473 Crs)

Acquisition of BASF Performance Polyamides India Pvt. Ltd (BPPIPL)

• Complementary product portfolio, well known Technyl® brand enhances growth opportunities. Wider distribution network, more co-creation opportunities
• Consideration amount Rs.303 Crs; Enterprise value Rs.219 Crs after netting of cash balance of Rs.84 Crs (Wholly Owned Subsidiary effective Aug'20)
• Apr to Dec'20: Revenue **Rs.163 Crs (**FY19-20: Rs.276 Crs)
• Merged with BIL effective February 1, 2021

• Construction Chemicals business forms part of the Surface Technologies segment
• Performance Polyamides business forms part of the Materials segment

Revenue development by segment Business performance: Apr–Dec'20 (consolidated)

*Construction Chemical business was divested effective 1st July 2020

BASF Performance Polyamides acquisition accounted as common control transaction effective February 1, 2020

Results development by segment Business performance: Apr–Dec'20 (consolidated)

Improved margins with higher volumes and better price realisation

*Construction Chemical business was divested effective 1st July 2020

BASF Performance Polyamides acquisition accounted as common control transaction effective February 1, 2020

BPPIPL Performance: Apr-Dec 20

Higher volumes with rebound in auto industry observed in Q3

PBT bEI: Profit before tax before exceptional items BASF Performance Polyamides acquisition accounted as common control transaction effective February 1, 2020

Highlights of strong performance

Operational Cash Flow Strong EBITDA

BPPIPL Cash accumulation

Working Capital Management

• Optimum Inventory levels, considering business model
• Receivables well managed despite challenges

Cost control measures

• Office consolidation
• Optimizing IT infrastructure & services
• Manufacturing fixed cost optimization
• Resource optimization

Reduced Borrowings

Active fund Management:

• Repayment of Commercial paper Rs.500 Crs
• Finance cost lower by Rs.40 Crs

Endeavors for sustainable growth

• Cost control & resource optimization
• Working capital
• Digitalization

Government & Industry

Diversity & Inclusion