OverviewFullYearand4thQuarter2010BASFinexcellentshapeandoptimisticfor2011•Recordsalesandearningsachievedin2010•Cognisacquisitionstrengthensportfoliowithspecialtyproducts•Outlook2011:BASFaimstosignificantlyincreasesalesandearningsBasisforthisreportBASFGroup2010Million€4thQuarterFullYear20102009Changein%20102009Changein%Sales16,42413,17424.763,87350,69326.0Incomefromoperationsbeforedepreciationandamortization(EBITDA)2,7032,23221.111,1317,38850.7Incomefromoperations(EBIT)beforespecialitems1,7651,47919.38,1384,85267.7Incomefromoperations(EBIT)1,6871,00667.77,7613,677111.1Incomebeforetaxesandminorityinterests1,57784287.37,3733,079139.5Netincome1,100455141.84,5571,410223.2Earningspershare(€)1.200.50141.84.961.54223.2Adjustedearningspershare(€)1.391.0631.15.733.0190.4EBITDAmargin(%)16.516.9–17.414.6–Cashprovidedbyoperatingactivities1,15373457.16,4605,69313.5Additionstolongtermassets13,793694446.55,3045,972(11.2)Excludingacquisitions1,05475639.42,5652,5361.1Amortizationanddepreciation11,0161,226(17.1)3,3703,711(9.2)Researchanddevelopmentexpenses4093788.21,4921,3986.7Segmentassets(asofDecember31)248,62640,70719.5–––Personnelexpenses2,1991,94712.98,2287,10715.8Numberofemployees(asofDecember31)109,140104,7794.2–––1Intangibleassetsandproperty,plantandequipment(includingacquisitions)2Intangibleassetsandproperty,plantandequipment,inventoriesandbusinessrelatedreceivablesThisreporthasnotbeenauditedbytheexternalauditors.TheBASFReport2010,whichincludestheauditedConsolidatedFinancialStatementsofBASFGroup,willbepublishedonMarch10,2011.BASFGroupBusinessReview20101BASFontheCapitalMarket4Chemicals6Plastics8PerformanceProducts10FunctionalSolutions14AgriculturalSolutions16Oil&Gas18RegionalResults20BASFGroupOutlook21ConsolidatedStatementsofIncome22ConsolidatedBalanceSheets23ConsolidatedStatementsofCashFlows25ConsolidatedStatementsofRecognizedIncomeandExpense27ConsolidatedStatementsofStockholders’Equity28SegmentOverview29Ten-yearSummary33ImportantDatesbackcoverContentsCover:ChemicaltechnicianChristianLauerandForemanVolkerDingestakingmeasurementsinthecitralplantinLudwigshafen.BASF’ssegmentsIntheChemicalssegment,wesupplyproductstocustomersinthechemical,electronics,construction,textile,automotive,pharmaceuticalandagriculturalindustriesaswellasmanyothers.Furthermore,weensurethatotherBASFsegmentsaresuppliedwithchemicalsfortheproductionofdownstreamproducts.Ourportfoliorangesfrombasicchemicals,gluesandelectronicchemicalsforthesemiconductorandsolarcellindustries,tosolventsandplasticizers,aswellasstartingmaterialsforproductssuchasdetergents,plastics,textilefibers,paintsandcoatingsandpharmaceuticals.ChemicalsPage6ThePlasticssegmentincludesabroadrangeofproducts,systemsolutionsandservices.Weofferanumberofengineeringplasticsfortheautomotiveandelectricalindustriesaswellasforuseinhouseholdappliancesandsportsandleisureproducts.Ourstyrenicfoamsareusedasinsulatingmaterialsintheconstructionindustryandinpackaging.Ourpolyurethanesareextremelyversatile:Assoftfoams,forexample,theyimprovecarseatsandmattresses,andasrigidfoamstheyincreasetheenergyefficiencyofrefrigerators.PlasticsPage8PerformanceProductslendstabilityandcolortocountlesseverydayitemsandhelptoimprovetheirapplicationprofile.Ourproductportfolioincludesvitaminsandfoodadditivesaswellasingredientsforpharmaceuticalsandforhygiene,homeandpersonalcareitems.OtherPerformanceProductsimproveprocessesinthepaperindustry,oilandgasproduction,miningandwatertreatment.Theycanalsoenhancetheefficiencyoffuelsandlubricants,theeffectivenessofadhesivesandcoatings,andthestabilityofplastics.PerformanceProductsPage10123€11,377million12€9,830million12345€12,288millionKeydataChemicals(million€)20102009Changein%Sales11,3777,51551.4EBITDA3,0001,57191.0Incomefromoperationsbeforespecialitems2,3021,021125.5Incomefromoperations(EBIT)2,310735214.3Sales(%)1Inorganics112Petrochemicals673Intermediates22Sales(%)1PerformancePolymers452Polyurethanes55Sales(%)1Dispersions&Pigments262CareChemicals223Nutrition&Health124PaperChemicals145PerformanceChemicals26KeydataPlastics(million€)20102009Changein%Sales9,8307,12837.9EBITDA1,72199473.1Incomefromoperationsbeforespecialitems1,284576122.9Incomefromoperations(EBIT)1,273554129.8KeydataPerformanceProducts(million€)20102009Changein%Sales12,2889,35631.3EBITDA2,162926133.5Incomefromoperationsbeforespecialitems1,554698122.6Incomefromoperations(EBIT)1,345(150).IntheFunctionalSolutionssegment,webundlesystemsolutionsandinnovativeproductsforspecificsectorsandindustries,inparticularfortheautomotiveandconstructionindustries.Ourportfoliocomprisesautomotiveandindustrialcatalysts,automotiveandindustrialcoatingsandconcreteadmixturesaswellasconstructionsystemssuchastileadhesivesandarchitecturalcoatings.FunctionalSolutionsPage14Ourcropprotectionproductsguardagainstfungaldiseases,insectsandweedsandtheyincreasequalityandsecurecropyields.Ourresearchinplantbiotechnologyconcentratesonplantsforgreaterefficiencyinagriculture,healthiernutritionandforuseasrenewablerawmaterials.Researchanddevelopmentexpenses,sal