BASF-Group Outlook

Outlook
published on April 24, 2008

(Interim Report 1^st Quarter 2008)

The good start to the first quarter confirms our positive outlook for 2008. Assuming there are no changes to our portfolio, we aim to increase sales and improve income from operations before special items slightly in 2008. We expect to grow faster than the chemical market each year and we are confident of earning at least our cost of capital in any given year.

The outlook for 2008 is now based on the following assumptions:

A moderate slowdown in global economic growth and growth in chemical production (excluding pharmaceuticals) of 2.8%
An average euro/dollar exchange rate of $1.50 per euro
An average oil price (Brent) of $90 per barrel

The statements on opportunities and risks made in the BASF Report 2007 remain valid.

Outlook
published on March 12, 2008

(BASF Group Report 2007)

Assuming that our portfolio remains unchanged we aim to:

Increase sales and slightly improve income from operations before special items
Grow faster than the chemical market in the following years
Earn our cost of capital each year
Increase or at least maintain our dividend each year
Continue our share buyback program

Our business has continued to develop successfully since the beginning of 2008. The level of orders remains strong. Taking into account the economic assumptions described above, we expect BASF’s business to develop positively in the next two years.

We aim to further extend our position as the world’s leading chemical company. Our goal is to continue to increase BASF’s value and earn an attractive premium on our cost of capital.

Risks
Risks are posed by continuing uncertainty due to the global credit crisis and unfavorable developments in our customer industries, in particular in the construction and automotive industries. Economic risks are also posed by continued high oil prices as well as the risk global markets face as a result of an increasing imbalance in exchange rates. In addition, an aggravation of geopolitical tensions and the destabilization of political systems also pose risks. Based on currently available information, there are no significant individual risks at the present time or in the foreseeable future. Neither does the total sum of individual risks pose a threat to the continued existence of the BASF Group.

Forecast
Acquisitions made in recent years have extended our portfolio into high-growth and innovative areas, strengthened our profitability and further reduced our dependency on the cyclicality of the chemical industry. In 2008, assuming there are no changes made to our portfolio, we aim to increase sales and slightly improve income from operations before special items. We expect to grow faster than the chemical market each year and we are confident of earning at least our cost of capital in any given year.

Outlook
published on February 21, 2008

(BASF Group Annual Press Conference Report)

Assuming that our portfolio remains unchanged we aim to:

Increase sales and slightly improve income from operations before special items
Grow faster than the chemical market in the following years
Earn at least our cost of capital each year
Increase or at least maintain our dividend each year
Continue our share buyback program

Our business has developed successfully since the beginning of 2008. The level of orders remains strong. Given the economic assumptions described below, we expect BASF Group’s business to develop positively in the next two years.

Economic environment 2008
We have based our business planning for 2008 on the following assumptions:

A moderate slowdown in global economic growth and growth in chemical production (excluding pharmaceuticals) of 2.8%
Declining interest rates in the United States in the course of 2008 with moderate knock-on effects for Europe
An average euro/dollar exchange rate of $1.45 per euro
Average oil prices of approximately $78 per barrel in 2008

Risks
Risks are posed by:

Continuing uncertainty due to the global credit crisis
Unfavorable developments in our customer industries, in particular in the construction and automotive industries
Economic risks due to the continued high oil price
An increasing imbalance in exchange rates
An aggravation of geopolitical tensions and the destabilization of political systems

Opportunities
Four strategic guidelines define the way in which we act. Rigorous value-based management, a strong customer focus, the best team in industry and sustainable development form the foundations for our success.
Innovations are an important impetus for BASF’s profitable growth. We have therefore increased the budget for our five growth clusters - energy management, nanotechnology, white (industrial) biotechnology, plant biotechnology and raw material change - to more than €900 million for the period 2006 through 2008. Starting in 2015, BASF expects additional annual sales of between €2 billion and €4 billion from innovations based on projects in these growth clusters.
In 2008, we will further increase our research and development expenditures by approximately 5%.
By expanding global partnerships, BASF is in a position to respond flexibly in world markets. In Gazprom, we have a reliable partner in the joint production, transport, storage and marketing of natural gas. In the area of plant biotechnology, the U.S. company Monsanto is our partner in the research, development and commercialization of stress tolerant and higher yielding crops.

Forecast
In 2008, assuming there are no changes made to our portfolio, we aim to increase sales and improve income from operations before special items slightly. We expect to grow faster than the chemical market each year and we are confident of earning at least our cost of capital in any given year.

Dividends and share buybacks
We aim to further increase our dividend annually and match the previous year’s level even in years in which the business environment is difficult. Moreover, we also intend to continue to buy back shares.

Outlook
published on October 30, 2007

(Interim Report 3^rd Quarter 2007)

Our forecast for 2007 is now based on the following conditions:

Global economic growth of 3.5%
An average oil price (Brent) of around $70/barrel
An average dollar/euro exchange rate of $1.35 per euro

The statements on risks made in the Financial Report 2006 remain valid. Based on the information currently available, we do not perceive any significant individual risks either at the present time or in the foreseeable future. Neither does the total sum of individual risks pose a threat to the continued existence of the BASF Group.

> Detailed information is available on pages 72 to 75 of the Financial Report 2006, "Risk Management System and Risks of Future Development".

We want to continue to grow faster than the market. We expect sales of close to €58 billion in 2007. Also in the fourth quarter, scheduled plant turnarounds, in particular in Petrochemicals, are set to reduce earnings. Nevertheless, we expect EBIT before special items in 2007 to exceed the previous year’s record level.

Outlook
published on August 1, 2007

(Interim Report 2^nd Quarter 2007)

Our forecast for 2007 is now based on the following conditions:

Global economic growth of 3.5%
An average oil price (Brent) of $65/barrel
An average dollar/euro exchange rate of $1.35/€

We want to continue to grow faster than the market. In 2007, we expect significantly higher sales than in 2006. Scheduled plant turnarounds, in particular in the Petrochemicals division, a likely to reduce earnings by €150 million in the second half of 2007. In addition, we plan to further increase spending on research and development. We nevertheless expect full-year EBIT before special items to at least match the previous year's record level.

Disclaimer
This information contains forward-looking statements. 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 BASF’s Financial Report 2006 on pages 72ff. We do not assume any obligation to update the forward-looking statements contained in this report.