wayne t. smith manfredorübens - basf · 2018-11-17 · crossbeam for the new mercedes-benz s-class...

Wayne T. SmithCEO BASF Corp.Member of the Board ofExecutive Directors

Manfredo RübensCFO BASF Corp.

Deutsche BankInvestor Visit

HoustonMarch 7, 2017

Deutsche Bank Investor Visit – March 7, 2017 2

Cautionary note regarding forward-looking statements

Forward-looking statements

This presentation contains forward-looking statements. These statements are based on currentestimates and projections of BASF management and currently available information. Futurestatements are not guarantees of the future developments and results outlined therein. These aredependent on a number of factors; they involve various risks and uncertainties; and they are basedon assumptions that may not prove to be accurate. Such factors include those discussed in theOpportunities and Risks Report from pages 111 to 118 of the BASF Report 2016. We do not assumeany obligation to update the forward-looking statements contained in this presentation.


BASF North AmericaContribution to BASF Group

Sales (in billion €)

* BASF Group, incl. Oil & Gas and Agricultural Solutions ** Thereof Canada €0.95 bn, Mexico €0.81 bn (2016)

€14.7 bn**(26%)

North America

0

2

4

6

8

10

12

14

16

18

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2016~€57.6 bn*

Europe47%

South America

7%Asia20%

BASF North America generates about a quarter of BASF Group sales; 2016 impacted by lower prices

CAGR

4.0%


.

Global Verbund sites of BASF Two out of BASF’s six Verbund sites are located in North America

Freeport Kuantan

Nanjing Antwerp

Ludwigshafen

Geismar


BASF footprint in North AmericaA strong network of R&D and production sites

* Historical numbers include additions to intangible assets and acquisitions

Strong asset footprint of the #2 chemical company in North America

Selected production sites

Important R&D sites

GeismarVerbund site

FreeportVerbund site

Employees in North America~17,500

Production Sites100

~9,900… thereof in Manufacturing:

Capex in 2007-2016~€10 billion

Florham ParkHQ


Automotive is a growth business for BASF BASF sales to Automotive vs. global vehicle production(indexed)

50%

75%

100%

125%

150%

175%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

BASF salesto Automotive CAGR

6.4%

Global vehicleproduction

CAGR

3.0%

* Excl. precious metals, coatings refinish business; CAGR shown for 2007 – 2015


BASF business with North American OEM’s

Innovation-drivenbusiness momentum

Early adopter (e.g. new catalysttechnologies) Outstanding level of customer

intimacy achieved:

Partnership for growthand sustainability

Coatings as door opener for otherbusiness opportunities Chemistry ever-important in EVs,

focus on light-weight and batterymaterials

Longstandingkey supplier

Strong position in coatings, performance materials, mobile emission catalysts Several „Global Supplier of the Year“

awards and other recognitions


Customized solutions in BASF’s downstream activities Example #1: Integrated coating process with Automotive OEMs

BASF’s integrated process at GM’s new paint shop in Flint (MI)

BASF’s loyalty to their product and our process is unmatched. Their people are here through thick & thin, and can identify issues before we even can see them. Scott Gibson, Paint Shop Technician,General Motors


Customized solutions in BASF’s downstream activities Example #1: Efficiency and productivity gains through integrated process (IP) technology

Integrated Process versus standard process

BASF’s integrated process improves a highly energy-intense production process* Based on TÜV-certified ecoefficiency analysis conducted by BMW, Dürr and BASF

E-coat Basecoat with primer function

+ basecoat

Clearcoat

E-coat Primer Basecoat Clearcoat

Conventional process

Integrated process

Reduction of CO2 emissions, lower energy consumption by up to 20%

Major advantages*

Higher material efficiency

Waste reduction: No primer by-products

Time savings

Improved finished quality contributed to productivity


Value-adding simulation tool as key differentiator for performance materials

Development of lightweight performance parts

Virtual process design of polyurethane systems for the automotive interior

ULTRASIM®

Customized solutions in BASF’s downstream activities Example #2: ULTRASIM® technology with a host of applications in Automotive

Rear axle transmission crossbeam for the new Mercedes-Benz S-class

Instrument panels, e.g. for the BMW X1 (via Tier-1 customer)


Recent Supplier Awards to BASF Corporation (selection)

GM Supplier of the Year

Airbus Materials & Parts SQIP* as

‘Accredited Supplier’

Honda Corporate

Citizenship Award

PolyOne Supplier of the Year

Mann & HummelSupplier of the Year

* SQIP = Supply Chain & Quality Improvement

MASCO Partner of the Year

Deutsche Bank Investor Visit – March 7, 2017 12BASF Investor Day 2015 – Keynote speech 12


ChemicalsSignificantly higher earnings driven by strong volume growth and increased prices

Intermediates693+3%

Monomers1,662+19%

Petrochemicals1,207+8%

€3,562+12%

Sales Q4 2016 vs. Q4 2015million €

Sales development Volumes Prices Portfolio CurrenciesQ4 2016 vs. Q4 2015 6% 6% 0% 0%FY 2016 vs. FY 2015 3% (11)% 0% 0%

EBIT before special items million €

249

635

0

250

500

750

Q4 2015 Q4 2016

+155%

2,156 2,064

0

1,000

2,000

3,000

FY 2015 FY 2016

(4%)


Performance ProductsEarnings slightly up due to improved margins

Performance Chemicals947(4)%

Nutrition & Health443+3%

Dispersions & Pigments1,034(1)%

€3,602(1)%

Sales development Volumes Prices Portfolio CurrenciesQ4 2016 vs. Q4 2015 0% 0% (2)% 1%FY 2016 vs. FY 2015 1% (2)% (2)% (1)%

Care Chemicals1,178+1%

228 231

0

100

200

300

Q4 2015 Q4 2016

+1%



1,3661,745

0

1,000

2,000

FY 2015 FY 2016

+28%


1,6491,946

0

1,000

2,000

FY 2015 FY 2016

Functional Materials & Solutions Profitable growth based on continued strong demand from the automotive industry

Coatings921+14%

Catalysts1,736+12%

Sales development Volumes Prices Portfolio CurrenciesQ4 2016 vs. Q4 2015 11% (1)% 0% 0%FY 2016 vs. FY 2015 7% (5)% 0% (1)%

389

458

0

250

500

Q4 2015 Q4 2016

+18%

ConstructionChemicals

5640%

Performance Materials1,740+9%

€4,961+10%



+18%


1,090 1,087

0

1,000

2,000

FY 2015 FY 2016

Agricultural SolutionsSales grew considerably due to higher volumes; earnings burdened by higher fixed costs

Sales development Volumes Prices Portfolio CurrenciesQ4 2016 vs. Q4 2015 9% (2)% 0% 3%FY 2016 vs. FY 2015 (2)% 0% 0% (2)%

144

79

0

100

200

Q4 2015 Q4 2016

(45)%

+10%



0%

1,1671,281

0

1,000

2,000

Q4 2015 Q4 2016


Oil & GasSales and earnings increased significantly, mainly due to higher volumes

Sales development Volumes Prices / Currencies PortfolioQ4 2016 vs. Q4 2015 23% 3% 0%FY 2016 vs. FY 2015 3% (3)% (79)%

EBIT before special items / Net income million €

731*

922*

0

500

1,000

Q4 2015 Q4 2016

+26%

127* 163*

-184

182

-250

0

250

500

Q4 2015 Q4 2016

Natural Gas TradingExploration & Production Net income

* Including transportation business ** Natural Gas Trading divested to Gazprom end of September 2015 as part of the asset swap


1,000

426**

940517

1,050

362

0

1,000

2,000

FY 2015 FY2016

1,366

*

wayne t. smith manfredorübens - basf · 2018-11-17 · crossbeam for the new mercedes-benz s-class...

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