basf 3q2011 results speech

BASF 3rd Quarter 2011 Analyst Conference Call October 27, 2011, 11:00 (CEST), Ludwigshafen

BASF 3rd Quarter 2011 Analyst Conference Call 1

BASF with good earnings in Q3Third Quarter 2011Financial highlightsOctober 27, 2011

Analyst Conference Call Script

Dr. Kurt Bock Dr. Hans-Ulrich Engel

The spoken word applies.

BASF 3rd Quarter 2011 Analyst Conference Call October 27, 2011


This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. BASF has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements.

Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and BASF does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

Forward-looking statements


Sales €17.6 billion +12%EBITDA €2.7 billion (8%)EBITDA margin 15.4% 18.6%EBIT before special items (bSI) €2.0 billion (11%)EBIT bSI adjusted for non-comp. oil taxes €2.0 billion (1%)EBIT €1.9 billion (13%)Net income €1.2 billion (4%)EPS €1.30 (4%)Adjusted EPS €1.52 0%

Business performance Q3’11 vs. Q3’10

BASF with good earnings in Q3Third quarter 2011 highlights

Further sales growth in chemical activities mainly due to successful price increasesAcquired Cognis business continues to perform strongly; synergy targets increasedAgricultural Solutions on track for record year in sales and earningsEBIT before special items amounted to €2 billion. Adjusted for Libya, which contributed €355 million in last year’s quarter, EBIT before special items increased by 6% compared to Q3 2010.


Kurt Bock Ladies and gentlemen,

Good morning and thank you for joining us.

[Chart 3: BASF with good earnings in Q3]

BASF again posted good results in Q3 2011. Sales rose by 12

percent to 17.6 billion euros compared to the same quarter last

year. Successful price increases in all our segments contributed

14 percentage points to sales growth. Another 5 percentage

points came from the acquired Cognis businesses. Volumes on

the other hand were slightly below the very strong third quarter of

the previous year – due to 25 percent lower volumes in the Oil &

Gas business as a result of the suspension of our oil production in

Libya in the beginning of this year. Currencies – in particular the

weakening of the U.S. dollar – had a negative sales effect of 4

percent.

Volumes in our chemical activities were stable year-over-year.

Adjusted for a special effect – resulting from the optimization of

our supply chain of cracker products in North America – volumes

in our chemical activities increased by 1 percent compared to last

year. Hans will explain this in more detail in a minute.

EBIT before special items amounted to 2 billion euros and thus

was 11 percent below the very strong result of Q3 2010. Adjusted

for Libya, which contributed 355 million euros in last year’s

quarter, EBIT before special items increased by 6 percent

compared with the third quarter of last year.


At 1.2 billion euros, net income came in slightly below the

previous year’s figure.

Adjusted earnings per share were 1.52 euros and matched the

level of Q3 2010.



Major milestones in our active portfolio management achieved

Styrolution JV set on track

Styrolution, 50-50 joint venture between BASF and INEOS, established on October 1, 2011With pro-forma sales of €6.4 billion in 2010* Styrolution is global market leader in its industryBASF received ~€600 million in October as compensation for its contributed business

Divestiture of fertilizer activities

Agreement with EuroChem signed to sell BASF‘s fertilizer assets in Antwerp BASF also plans to sell its 50%-stake in PEC-Rhin JV to EuroChemTotal transaction value ~€700 millionClosing expected by the end of Q1 2012

* unaudited


[Chart 4: Major milestones in our active portfolio management

achieved]

In the last months, we achieved further important milestones to

optimize our portfolio.

On October 1, Styrolution, the 50-50 joint venture between

BASF and INEOS, began operating independently from its

parents. With pro-forma sales of 6.4 billion euros in 2010,

Styrolution is the global market leader in the styrenics industry.

Given the higher value of BASF’s assets, we received a payment

of 600 million euros at the beginning of October.

The new joint venture will be consolidated at-equity, and as of Q4

2011, the equity income will be reported in the financial result. In

addition, the disposal result will be booked as a special item in the

EBIT of ‘Other’ in the fourth quarter of this year.

At the end of September, we also reached an agreement with

EuroChem to sell our fertilizer activities in Antwerp, Belgium.

The total transaction value is in the range of 700 million euros.

The divestment is subject to approval by the appropriate antitrust

authorities, and we expect closing by the end of the first quarter of

2012.



Important investments to spur further profitable growth

Nanjing expansion on track

Joint investment of USD1.4 billion with Sinopec for first expansion phase of Nanjing Verbund siteSteam cracker expansion, butadiene extraction, non-ionic surfactants plants are now on-stream Majority of remaining plants expected to come on stream around end of 2011

Acrylic acid complex in Brazil

World-scale acrylic acid and SAP* production complex (Camaçari, Bahia)With more than €500 million BASF‘s largest investment in South AmericaRaw material and utilities supply secured via long-term contracts with BraskemConstruction will begin in Q4; start-up planned for 2014

* Superabsorbent polymers


[Chart 5: Important investments to spur further profitable

growth]

In the past few weeks, we made significant progress with important

projects to spur organic growth in emerging markets.

At our Verbund site Nanjing, China, the first new production

facilities, which are part of the 1.4 billion U.S. dollar expansion,

have started operations. Along with the successful completion of

the steam cracker expansion, the newly constructed butadiene

extraction plant and the non-ionic surfactants plant are now up

and running. The majority of the remaining plants will come on-

stream around the end of this year.

In Brazil, we will soon begin construction on our new world-scale

production site for acrylic acid, butyl acrylate and superabsorbent

polymers. Our plants will be the first acrylic acid and

superabsorbents production facilities in South America. At more

than 500 million euros, it is the largest investment in BASF’s

century-long history in South America. Production is scheduled to

begin in the fourth quarter of 2014.



smart forvision –joint concept car by Daimler and BASF

Presented at the International Motor Show in Frankfurt in September 2011BASF solutions are based on three main technology platforms:1. Electrical energy efficiency

- OPVs, OLEDs* support range extension

2. Multifunctional lightweight construction- Composite body parts, wheel rims and car seats

3. Integrated temperature management- Cool pigment coating, temperature reflecting foil

Chemical solutions by BASF are playing a key rolein bringing electromobility quicker to the roads

* OPVs = Organic Photovoltaics, OLEDs = Organic Light Emitting Diodes

Innovations for the mobility of tomorrow


[Chart 6: Innovations for the mobility of tomorrow]

With our innovations we are working on the solutions for tomorrow.

smart forvision – a joint concept car of Daimler and BASF – was

presented at the recent International Motor Show in Frankfurt in

September.

Thanks to the combination of smart’s automotive competence and

BASF’s material and system expertise, a vehicle has been

created, which showcases technologies for sustainable and

holistic electric mobility of the future. The smart forvision’s

innovations are based on three main technology platforms:

1. Electrical energy efficiency: A number of solutions such as our

organic dye solar cells as well as organic light-emitting diodes

(OLEDs) help to increase the electrical efficiency.

2. Multifunctional lightweight construction: Many of the parts

usually made from metal are now composed of fiber-reinforced

plastic – significantly reducing weight. The most exciting

example is the plastic wheel rim made of our engineering

plastic Ultramid.

3. Integrated temperature management: A novel transparent film

applied in the windshield and side windows reflects most of the

solar radiation and thus keeps the car interior cool.

Ladies and Gentlemen, we create chemistry. Our chemical solutions

are playing a key role in bringing electrical mobility quicker to the

roads, and hence to the consumer.



We expect to generate significantly higher salesWe aim to significantly exceed the 2010 EBIT before special itemsadjusted for non-compensable oil taxes (2010: €7.2 billion)We will earn a high premium on our cost of capital

Outlook 2011

Outlook 2011 confirmed

We aim to grow sales on average by two percentage points per year faster than chemical production growthWe strive to grow our earnings further year by year, and to achieve an EBITDA margin of 18% by 2012

Medium-term targets

We aim to continuously increase the annual dividend, or at least maintain it at the level of the previous year.

Dividend policy


[Chart 7: Outlook 2011 confirmed]

Now, let me comment on current trading and the outlook for this

year.

In Q3, our business has developed positively. Demand from our

main customer industries remained on a high level. The pace of

growth, however, was – as expected – lower compared to the

exceptionally strong first half of this year. We anticipate a

continuation of this trend in the fourth quarter. Therefore, we now

expect worldwide growth of GDP and industrial and chemical

production in 2011 to be just under one percentage point lower

than our previous forecast.

Given the current uncertainties about the future development of

the economy, customers have become more cautious in their

ordering behavior in the last weeks. Everyone is closely

monitoring working capital.

At BASF, we will continue to focus our attention on protecting our

margins and controlling our fixed costs, as well as keeping

working capital at a minimum level. As a consequence, we are

managing our inventories accordingly.

Furthermore, I would like to point out that we have successfully

resumed our onshore oil production in Libya in last week. We are

currently producing about 20,000 barrels of oil per day –

compared to 100,000 barrels of oil a day before the stoppage in

February.


Now to the outlook: We confirm our outlook for a strong full year

2011.

For 2011, we expect to generate significantly higher sales than in

the record year 2010. As our oil production in Libya was

suspended for most of this year, EBIT before special items

excluding non-compensable oil taxes provides a much more

meaningful guidance for 2011. We expect to significantly exceed

the 2010 EBIT before special items excluding non-compensable

oil taxes, which amounted to 7.2 billion euros last year.

We will earn a high premium on our cost of capital once again in

2011.

With this, I’ll hand it over to Hans for more details on Q3.



ChemicalsSignificant sales growth driven by strong price increases

Intermediates671+4%

Inorganics356

+11%

Petrochemicals2,141+12%

€3,168+10%

617537

765674

621

0

200

400

600

800

Q3 Q4 Q1 Q2 Q3

Sales developmentPeriod Volumes Prices Portfolio Currencies

Q3’11 vs. Q3’10 (3)% 18% 0% (5)%

Q3’11 segment sales (million €) vs. Q3’10 EBIT before special items (million €)

2010 2011


Hans-Ulrich Engel

Good morning ladies and gentlemen.

I would like to highlight the financial performance of each segment

in more detail and focus on the respective business developments

in comparison to the third quarter of 2010.

[Chart 8: Chemicals: Significant sales growth driven by strong

price increases]

In Chemicals, the significant sales growth was driven by double-

digit price increases across all three divisions, which by far offset

the negative currency effects. Demand remained on a high level.

EBIT before special items was slightly above the very high level of

the previous year.

In Petrochemicals, higher raw materials costs were passed on

via price increases, leading to a strong rise in sales. Demand for

cracker products remained high, but the modification of a swap

transaction for a cracker product in North America led to a volume

decrease. This adjustment was earnings-neutral. Excluding this

effect, divisional volumes as well as segment volumes were

stable. In industrial petrochemicals, demand softened, primarily

for plasticizers in North America. Earnings reached the very good

level of the third quarter of last year.

Sales in Inorganics were significantly up, driven by price

increases and slightly higher volumes. Demand from automotive

customers was high, while we saw signs of weakening in the

electronic industry, primarily in Asia. Earnings grew.


Sales in Intermediates rose mainly due to significant price

increases. Last month, we lifted a force majeure for the

butanediol value chain, caused by a fire at our Ludwigshafen

acetylene plant in May. Earnings matched the previous year’s

figure.



PlasticsSales up mainly due to a strong Performance Polymers business

Polyurethanes1,480+2%

PerformancePolymers

1,321+16%

€2,801+8%

371

285

393 383

317

0

200

400

Q3 Q4 Q1 Q2 Q3

Sales development Period Volumes Prices Portfolio Currencies

Q3’11 vs. Q3’10 2% 10% 0% (4)%


2010 2011


[Chart 9: Plastics: Sales up mainly due to a strong Performance

Polymers business]

Driven by significant price increases and further volume growth,

sales in Plastics rose strongly despite negative currency effects.

Demand from the automotive industry remained high. EBIT before

special items was lower, mainly due to a weaker TDI business.

Performance Polymers had another very good quarter.

Caprolactam prices stayed at record levels and demand

continued to be strong in most other product lines. Engineering

plastics and our specialties, particularly Basotect and Ecoflex,

performed very well. Earnings went up substantially due to a

combination of higher volumes and better margins.

In Polyurethanes, sales were slightly higher. Demand in the

automotive industry stayed high, while it weakened in

construction. Our specialty elastomers and systems performed

again strongly. In TDI, volumes and prices declined, resulting

from improved product availability after the start-up of new

capacities in Asia and Europe by competitors. Due to the lower

contribution from our TDI business, earnings came in below the

high level of last year.




Q3’11 vs. Q3’10 (2%) 7% 23% (4)%

Performance ProductsStrong contributions from acquired Cognis businesses

370294

554513

440

0

100

200

300

400

500

600

Q3 Q4 Q1 Q2 Q3

PerformanceChemicals

904+9%

Care Chemicals1,265+85%

€3,991+24%

Paper Chemicals423-6%


Nutrition & Health471+32% Dispersions

& Pigments928

+5% 2010 2011


[Chart 10: Performance Products: Strong contributions from

acquired Cognis businesses]

Performance Products continued to perform strongly. Sales rose

substantially, driven by strong price increases and the inclusion of

the acquired Cognis businesses. EBIT before special items went up

significantly despite low double-digit million euro integration costs

for Cognis.

Price increases in Dispersions and Pigments drove up sales

and offset slightly lower volumes as well as adverse currency

effects. In pigments, customers started to draw down their

inventories, especially for high-value products. Higher raw

material costs could only partly be passed on. As a consequence,

earnings decreased.

In Care Chemicals, sales went up sharply mainly due to the

inclusion of Cognis. Price increases – especially for detergents

and formulators as well as for superabsorbents – nearly

compensated for higher raw materials costs. Earnings grew

substantially.

Sales in Nutrition and Health were sharply up, primarily as a

result of the acquired Cognis businesses. We were able to

significantly increase sales volumes, particularly in animal

nutrition and pharma. Prices were overall stable to slightly

improving, with vitamin prices still below last year, but showing an

upward trend. Earnings increased.


The business environment in Paper Chemicals continues to be

challenging. Sales declined as a result of lower volumes, partly

attributable to weaker demand and our measures to streamline

the product portfolio. Despite reduced fixed costs, earnings were

lower than a year ago.

In Performance Chemicals, price increases and the inclusion of

Cognis lifted sales. Declining volumes and currency effects had a

negative impact on sales growth. In plastic additives, volumes

decreased as customers increasingly focused on reducing their

stock levels. Fuel and lubricant solutions developed positively.

Earnings were significantly higher. The previous year’s results

included a one-time expense for valuation adjustments on

receivables.



TargetAcquisition EPS accretive as of 2012

Integration Costs€300 million one-time costs until end of 2013 − thereof €200 million incurred by the end of Q3 2011

€120 million inventory step-up fully incurred already − €60 million each incurred in Q4 2010 and Q1 2011

Synergies€290 million of additional annual EBIT targeted− €145 million cost synergies by the end of 2013− €145 million growth synergies by the end of 2015

Cognis integration –Synergy target increased to €290 million


[Chart 11: Cognis integration – Synergy target increased to

€290 million]

Let me give you a short update on the Cognis integration, which is

in full swing. The biggest part of the structural integration will be

completed by the end of this year. The acquisition will be EPS

accretive by 2012.

One-time integration costs will total about 300 million euros by

2013 – thereof two-thirds already incurred by the end of the third

quarter.

We increased our synergy target from 275 million to 290 million

euros. We now expect 145 million euros each from cost and

growth synergies to be fully achieved in 2013 and 2015,

respectively.

For cost synergies, we anticipate a run-rate of roughly 60 million

euros by the end of this year, representing 40 percent of total cost

synergies.




Q3’11 vs. Q3’10 4% 11% 3% (6)%

Functional SolutionsStrong performance of Catalysts

Catalysts1,608+19%

ConstructionChemicals

5990%

Coatings700

+9%

€2,907+12%

158

33

142167 162

0

50

100

150

Q3 Q4 Q1 Q2 Q3


2010 2011


[Chart 12: Functional Solutions: Strong performance of

catalysts]

Sales in Functional Solutions increased, mainly driven by

continued high demand from the automotive industry. EBIT before

special items improved primarily as a result of the strong

performance of Catalysts.

In Catalysts, sales rose substantially with higher prices. Volumes

were up due to higher demand, not only for mobile emissions

catalysts, but also for chemical and refinery catalysts. At 674

million euros, the contribution from precious metals trading was at

the level of the previous year. Earnings improved strongly.

In Construction Chemicals, the business environment in North

America and Southern Europe remains challenging. However, in

the other parts of Europe as well as in Asia we saw a positive

trend in demand. As we could not fully pass on higher raw

material costs, earnings came in lower.

In Coatings continuing high worldwide demand for automotive

coatings as well as for decorative paints in Brazil drove up

volumes and sales. We were able to almost pass on higher raw

material costs to the market. Earnings were only slightly below

the good level of last year.



Agricultural SolutionsOn track for record year in sales and earnings

66

95

0

50

100

150

Q3 Q3


20112010

0

200

400

600

800

1.000

Q3 Q320112010

+9%

+44%


Q3’11 vs. Q3’10 12% 3% 0% (6)%

832908


[Chart 13: Agricultural Solutions: On track for a record year in

sales and earnings]

Agricultural Solutions again had a very successful quarter. Sales

increased by 9 percent, currency-adjusted by 15 percent. We were

able to raise prices by 3 percent. As a result of strong demand in all

regions, we increased volumes by 12 percent.

In South America, we had a very good start to the growing

season. Demand was especially strong for our new AgCelence®

production system and for insecticides. Business with the

Clearfield® herbicide tolerance technology expanded rapidly.

In Europe, the fall season also began successfully. Demand for

canola herbicides was strong in France and Eastern Europe.

Weather-related factors in North America pushed the application

period for fungicides into the third quarter, resulting in higher

sales. In Asia, we again saw high growth. In India, fungicides

excelled.

Please also note that we just received registrations for our

fungicide blockbuster candidate Xemium® in major European

countries. We expect the first sales of Xemium® in France as

early as the fourth quarter of this year.

EBIT before special items jumped to 95 million euros. Due to our

strong sales growth in the emerging markets of the Southern

hemisphere, we have turned the third quarter into a steady

earnings contributor: In this seasonal industry, we have been

reporting positive quarterly EBIT since 2008.


As our year-to-date earnings are already above the full-year 2010

result, we are on track for a new record year in Agricultural

Solutions – both in terms of sales and earnings.



272 225

0

200

400

600

Q3 Q3

Exploration &Production534-39%

Natural GasTrading

1,661+23%

€2,195-1%

Sales developmentPeriod Volumes Prices/Currencies Portfolio

Q3’11 vs. Q3’10 (25)% 24% 0%

EBIT bSI Natural Gas TradingEBIT bSI Exploration & Production Net income

Q3’11 segment sales (million €) vs. Q3’10 EBIT before special items/ Net income (million €)

20112010

503227

573

350Non-compensableoil taxes 224

70 123

Oil & GasEBIT before SI on last year’s level (adjusted for non-compensable oil taxes)


[Chart 14: Oil & Gas: EBIT before special items on last year’s

level (adjusted for non-compensable oil taxes)]

Sales in Oil & Gas were nearly stable despite the suspension of our

oil production in Libya. Higher oil and gas prices offset most of the

25-percent volume decline. EBIT before special items was

considerably below last year. However, adjusted for non-

compensable oil taxes, EBIT before special items matched the

previous year’s figure.

In Exploration & Production, volumes fell sharply primarily due

to the lack of oil production in Libya. As a consequence, sales

and earnings declined despite substantially higher crude oil and

natural gas prices. The average price for Brent was 113 U.S.

dollars per barrel, compared with 77 U.S. dollars per barrel in the

previous year.

Sales in Natural Gas Trading rose strongly, primarily as a result

of increased gas prices. Margins, however, were negatively

impacted by the time-lag effect, the delayed adjustment of sales

prices to purchase prices. This effect was compensated by a one-

time gain from contract adjustments with customers. Earnings,

therefore, were above last year’s level.

As already mentioned by Kurt, we are again producing oil in

Libya, on- and offshore. As we are still in the start-up phase of our

onshore operations, our focus is currently on the stabilization of

production at 20,000 barrels of oil per day and on lifting the first

shipment.


Crude oil production from the offshore platform Al Jurf in the

Mediterranean Sea, in which Wintershall has a 6.75 percent

stake, began a few weeks ago.

We expect an EBIT contribution from Libya of less than 100

million euros for the remainder of this year.



Review of “Other”

Million € Q3 2011 Q3 2010Sales 1,637 1,452thereof Styrenics* 739 683

EBIT before special items (21) 58thereof Corporate research

Group corporate costs Currency results, hedges and other valuation effectsStyrenics, fertilizers, other businesses

(86)(58)104

82

(67)(54)104

77

Special items (33) (68)

EBIT (54) (10)

* Since January 1, 2011, Styrenics only includes the carved-out Styrenics businesses; the previous year’s values were adjusted accordingly.


[Chart 15: Review of ‘Other’]

In “Other”, sales grew primarily as a result of higher prices in the

Styrenics business and raw material trading. A weaker U.S. dollar

led to foreign currency losses in Q3. At the same time, we reported

a gain from the reversal of provisions for our long-term incentive

(LTI) program, as a result of the lower share price. Special items in

‘Other’ include a settlement payment in a class action lawsuit in the

United States. Earnings were lower than last year.



Million € Jan - Sep 2011

Jan - Sep 2010

Cash provided by operating activities 5,028 5,307thereof Changes in net working capital (1,337) (783)

Cash used in investing activities (957) (1,175)thereof Payments related to tangible / intangible assets (2,101) (1,518)

Cash used in financing activities (4,105) (3,814)thereof Changes in financial liabilities

Dividends (1,727)(2,378)

(2,003)(1,811)

Operating cash flow strong at €2.0 billionFree cash flow again high at €1.2 billion Net debt further reduced by ~€650 million to €11.6 billion since end of Q2 2011

Third quarter 2011

Operating cash flow remains strong


[Chart 16: Operating cash flow remains strong]

Let me now briefly conclude with our cash flow.

At 5 billion euros, we generated a very strong operating cash flow in

the first nine months of this year – thereof 2 billion euros coming

from the third quarter. Net working capital rose by 554 million euros

compared to the same period last year mainly due to an increase in

inventories – resulting from growing our business, higher raw

material costs and the build-up of natural gas volumes in our

storage facilities.

In the first nine months, we used 957 million euros in investing

activities. Capex amounted to 2.1 billion euros, considerably above

last year, but still below depreciation.

Free cash flow reached 2.9 billion euros in the first nine months of

this year, thereof 1.2 billion euros generated in the third quarter.

Since the end of 2010, we reduced net debt by 1.9 billion euros to

11.6 billion euros end of September, thereof roughly 650 million

euros reduction in Q3.

Thank you for your attention. We are now happy to take your

questions.



BASF 3rd Quarter 2011 Analyst Conference Call

Macro-economic assumptions 2011

Previous forecast

GDP 3%-4%

Chemical production (excl. Pharma)

5%-6%

Industrial production 5%-6%

US$ / Euro 1.40

Oil price (US$ / bbl) 110

New forecast

2.5%-3%

4.5%-5%

4.5%-5%

1.40

110



Financial highlights

Million € Q3 2011 Q3 2010 Δ% Q2 2011 Δ%Sales

changes due to- volumes- prices- portfolio- currencies

17,607 15,781 +12%

(3)%+14%+5%(4)%

18,461 (5)%

EBITDA 2,709 2,934 (8)% 3,015 (10)%

EBIT before special items 1,964 2,213 (11)% 2,237 (12)%

EBIT before special itemsadjusted for non-compensable oil taxes 1,964 1,989 (1)% 2,237 (12)%

Special items (82) (58) - (20) -

EBIT 1,882 2,155 (13)% 2,217 (15)%

Net income 1,192 1,245 (4)% 1,454 (18)%

EPS (€) 1.30 1.35 (4)% 1.59 (18)%

Adjusted EPS (€) 1.52 1.52 0% 1.75 (13)%

BASF 3rd Quarter 2011 Analyst Conference Call

Cognis integrationGenerating €290 million of growth and cost synergies

Providing joint customer base with access to broader portfolioIncreasing solution capabilitiesExtending innovation capabilitiesLeveraging regional set-up

Cost synergiesRealizing procurement cost savingsConsolidating of administrative structuresImproving production efficiencyConsolidating IT landscape

Synergies (million €)

145

145

0

50

100

150

200

250

300

350

Cost synergies (by the end of 2013)Growth synergies (by the end of 2015)

Growth synergies

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