BASF 4.0 – INNORATE® Cellasto Crowd-selling Prototyping & Validation Kick-Off & Define meeting - July 13th & 14th, 2016

Agenda Day 1 Day 2 Introductions & INNORATE Process 14:00 – 14:30 Review Workshop Results (4 pitched BMs) 14:30 – 15:00 Refine Business Model Idea (Templates 1 & 2) – Team Split 15:00 – 16:30 Coffee Break 16:30 – 16:45 Refine Business Model Idea (Templates 1 & 2) – Compilation 16:45 – 18:00 Day 2 Final Version of Business Model Idea & Features Discussion 08:30 – 10:30 Define Hypothesis to be tested in Prototyping & Validation Phase 10:30 – 11:00 Draw Business Scout Journey 11:00 – 12:00 Open Questions & Next Steps 12:00 – 12:30

Together, Cellasto® & BASF 4 Together, Cellasto® & BASF 4.0, will prototype the chosen idea over the next 3 months Produce innovative digital Business Models in Workshops Use prototypes to get feedback from customers & improve business model Pilot Minimum Viable Product in test market and roll-out subsequently Exploration with OD/BU Canvas Pitch Ideas Hi-Fi Prototypes Lo-Fi Prototypes Ideation Prototyping & Validation Scale-Up Pilot MVP & Grow >40 1 Prototype ~1 MVP 4 8 Completed April 2016

Objectives of today Our Meeting: 1. Define 2. Lo-Fi Prototype 3. Hi-Fi Prototype 4. Measure & Evaluate Our Meeting: Review the INNORATE® Process & how we will work together Refine & finalize business model idea Identify stakeholders & users of our offering (customer & industry) Identify perceived customer pain points & align on key questions for customer interviews Agree on scope for low-fidelity prototype Review timeline & next steps

In the prototyping phase, we typically conduct 5-8 sprints along the INNORATE® sub-phases SPRINT ILLUSTRATION Prototyping & Validation within INNORATE® 4-6h 4-6h 2+ weeks 1-2 weeks Kick-Off Project & Define Business Model Meeting Define Prototype Meeting Develop Prototype Measure & Evaluate Start next level of prototype Ideation Scale-Up 2-5 iterations Introduce new implementation team & onboard non- workshop attendees Agree on clear business model concept, incl. rough idea of value drivers Define success criteria & project plan Clarify concept among 4.0 & BU Define form & fidelity of prototype together with design team Define nature of validation Define Timeline Build prototype according to defined criteria Gather additional feedback from team, if necessary* Quick internal iteration between designers, 4.0, and BU for 20%*, 60%*, 90% version Conduct user/ customer interviews (internal & external) Review and analyze success criteria Evaluate prototype success Summarize learnings Start next prototype Re-iterate until positive market validation -> decisive for scale-up If mature enough, “Go/No Go” decision for scale-up Depending on project location, time between sprints may vary Sprint Break *Does not need to be a physical meeting, can be a WebEx meeting

Workshop Summary – 4 new business models pitched, 4 more developed “Crowd-selling” Extend salesforce and idea generation base for Cellasto applications via business scouts. A “Sillence® - Silence by Cellasto®” Offer a silent kit / label for key “white goods” applications. B “Seatlasto®” or Smart Cellasto® Leverage smart feedback to enable better designs and healthier lives. C “Digillasto® – your fast track to NVH solutions” Provide digital platform for expert network, customized design, rapid prototyping and delivery of your NVH solution. D Ideas involve creating a broader scope of Cellasto® applications via a platform/app and expanded sales force as well as performance enhancement through sensors.

Crowd selling Pitch Presentation

Implementation Team Cellasto: Cornelia Willnat (Project Leader) Marc Ingelmann Benjamin Raeth Kambiz Yahosseini Dirk Kreienburg BASF 4.0: Jennifer Schmitz Jennifer Kint

Templates to optimize and finalize the Crowd- selling business model Refine Business Model Template #1 Template #2 To whom are we offering? What exactly are we offering? Target user/ industry Description & Features Pain points Perceived values / benefits Template #1 Write down crowdselling canvas bullet points on post-its and sort in relevant category Add additional inspirational inputs from promising ideas included in other, non-selected canvasses Clearly formulate the USP of your offering – how does it differ from existing solutions? Template #2 Via what channel(s) are we offering? USP

To whom are we offering (Team 1)

To whom are we offering (Team 2)

To whom are we offering (FINAL VERSION)

What exactly are we offering (Team 1)

What exactly are we offering (Team 2)

What exactly are we offering (FINAL VERSION)

First ideas on ways for BASF to capture value

Templates to optimize and finalize the Crowd- selling business model Prototype Preparation Template #5 Template #6 What is our hypothesis to be tested? User Journey Pain points Our unique offering User journey (scout + end-user) Old vs new way of selling, current vs new sales approach Our hypothesis YOUR TARGET USERS want/need a YOUR OFFERING to solve their existing problem of ADDRESSED PAIN POINTS

Crowd-selling Idea & Business Model – Hypothesis to be tested with Potential Business Scouts BASF can incentivize and enable students to become business scouts for Cellasto. Testing this hypothesis will involve gaining validation on the following assumptions:  Students (material science, MBA, mechanical engineering, “duales stadium”, others?) are interested in becoming Cellasto business scouts;  Students can be motivated/incentivized by BASF to become Cellasto business scouts;  BASF can incentivize students by giving them an opportunity to build their network, connect with BASF & other companies, combine education with earning money, explore their entrepreneurial & creative side, enrich their CV, get credit points and get some 'real world' experience;  BASF can enable students to become business scouts (discover new Cellasto use-cases and make sales) by onboarding them with the right training (on sales techniques, Cellasto technical info, application examples) and giving them a digital sales support tool.

Illustration of Hypothesis

Illustration of Business Scout Journey

Value Creation & Coordination Refined Business Model Idea after Kick-off & Define Meeting - Business Model Canvas “Crowd-selling” Extend salesforce and idea generation base for Cellasto applications via business scouts. Value Offering Value Creation & Coordination Value Delivery Value Capturing BS Preparation / On boarding: In person training + videos & tutorials (sales, technical, communication, negotiation, coaching) Cellasto material info Application/ Use case examples BS Sales-Enabling: User-friendly App (great UI/UX) Pre-invested iPad Compare feature (with vs. without Cellasto) Yellow box + QR Codes Selling support tool (videos) Examples of success stories Basic sketching functionality Access to water-jet prototype BS Community: Inspirational input (use cases & customers) Cross inspiration (facebook sharing feature) Access to BASF & other BS’s Gamification & Rewards BS Profile Customer access (network) Incentivizing program for new applications Commission payment for Cellasto Sales Incentivizing program for on boarding Expert community & network Kit Business Scouts User-friendly App Sample box Inspiring skills/ product targeted training with certification Healthy competition via transparent ranking system (Gold model) University contests Business Scouts “Milenas” are the target users of our solution (App): Mechanical engineering students Material Science students MBA students “Duales Studium” To customers Phase I: standard parts Phase II: Lego-approach (tbc) Phase III: Design Tool / capability (tbc) Additional Business from previously untapped market segments New talents Discovery of new applications Market Reach (expanded sales force) Targeted steering of sales activities Increased product/brand awareness New market insights Quick scalability of successful ideas

Work streams & Responsible Team Members (1/2) Work stream background Responsible Focus Applications & Catalogue What are the examples of possible use case applications and products BS should focus on? Multi use of developed parts / non-engineering parts. Define complexity / scope of suitable applications (low end). List of application examples needs to be developed. Benjamin Raeth Recruiting & Training Program How should we recruit BS? What are the minimum requirements/ qualifications for a BS candidate? How do we manage BASF and BS reputation. What would be the best training plan? Certification program (theory + practice). Include “better than rubber” approach in training concept. Marc Ingleman Incentive System for BS How do we realize the incentive program within BASF? How can we explore credit points’ possibility? Opportunity cost? Dirk Kreienborg Interaction with Universities & Professors How can we align university interests with Cellasto Crowd-selling objectives? Could Cellasto challenges be introduced to BS via professors? Distribution of Products How do we cope with the complexity of a high number of additional customers? Who will be our customer (e.g. Gym? Or the water-jet cutter?) Will it be delivered by BASF or a 3rd party to the end consumers? Will the end consumer cut and apply the material himself? Cornelia Willnat Commercial How will the transaction take place? How would the pricing strategy/ management be? Sales support content? Legal aspects? Cornelia Willnat Development of 4.0 Sample Box with QR codes What are the right products to be included in the box? How do we make the sample box a smart / 4.0 box? Kambiz Yahosseini

Work streams & Responsible Team Members Work stream background Responsible Interview Questionnaire Define necessary questions to validate our hypothesis via the Lo-Fi prototype. Jennifer Schmitz Phase II (Lego Approach) – Going beyond semi-finished goods How do we go beyond semi finished goods? Benjamin Raeth How should BS approach customers How can we support BS by giving them some guidance on how to start approaching customers? Personal network, BASF network, Professors, etc. Cold calling. Who are the target customers? Who are the target group at customers? Kambiz Yahosseini Leads / Inspirational Inputs to BS How are we going to provide the leads / inspirational inputs to the BS? How frequent? Is it going to be through the App only? How are they going to share their findings with the other BS and BASF? Dirk Kreienborg