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BASF and Carlyle reach binding transaction agreement on coatings business to create a leading standalone company Conference Call, October 10, 2025
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1 October 10, 2025 | BASF Conference Call Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. BASF does not assume any obligation to update the forward-looking statements contained in this presentation above and beyond the legal requirements.
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2 October 10, 2025 | BASF Conference Call BASF Coatings: Leading surface solution provider in mobility applications with strong competitive positioning Automotive OEM coatings Sales 2024: ~€2 billion Surface treatment Sales 2024: ~€1 billion Automotive refinish coatings Sales 2024: ~€0.8 billion BASF Coatings holds leading market positions … … and plays in large markets1 with high customer loyalty ~€7 billion global market ~€6 billion global market~€6 billion global market 1 Source: BASF Market Intelligence #1#2 #3
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3 October 10, 2025 | BASF Conference Call Transaction highlights ▪ Significant step in unlocking the value of BASF’s standalone businesses, as we swiftly execute our “Winning Ways” strategy ▪ Enterprise value of the transaction1 amounts to €7.7 billion ▪ At closing, which – subject to customary regulatory approvals – is expected in Q2 2026,: ▪ BASF will hold a 40% equity stake in the coatings business ▪ BASF will receive pre-tax cash proceeds of approx. €5.8 billion 1 Including BASF's automotive OEM coatings, automotive refinish coatings and surface treatment businesses
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4 October 10, 2025 | BASF Conference Call Partnership with Carlyle will allow BASF to participate in Coatings’ future value creation ▪ Significant future value creation potential by accelerating growth and unlocking the full potential of the business in a standalone entity ▪ BASF will participate in the future upside of the business with its 40% equity stake in partnership with Carlyle1 ▪ Carlyle1 will leverage its strong track record and extensive experience in successful carve-outs of industrial and chemical assets 1 Funds managed by global investment firm Carlyle (NASDAQ: CG), in partnership with Qatar Investment Authority (QIA) 2 Automotive OEM coatings, automotive refinish coatings and surface treatment businesses (excluding decorative paints) Ownership structure post closing 40% share60% share 1 Coatings2
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5 October 10, 2025 | BASF Conference Call Coatings transactions constitute major milestone in swiftly executing BASF’s Winning Ways strategy 1 Based on historical average EV/NTM EBITDA multiple before special items 2 Based on reported EBITDA before special items 2024 of BASF’s Coatings division (including decorative paints) 3 Divestiture of decorative paints business closed on October 1, 2025, and binding agreement relating to automotive OEM coatings, automotive refinish coatings and surface treatment businesses EV/EBITDA multiple before special items ▪ BASF Coatings and decorative paints transactions3 value BASF’s entire Coatings division at an enterprise value of €8.7 billion ▪ Implied 2024 EV/EBITDA multiple before special items of approx. 13x ▪ Achieved multiple highlights the intrinsic value hidden in BASF’s sum of the parts valuation ~7x1 ~13x2