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CAPITAL MARKET STORY – Basf Se

Basf Se · May 1, 2014 · 62 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CAPITAL MARKET STORY – Basf Se – slide 1
    Capital Market Story May 2014 We add value as one company
  2. CAPITAL MARKET STORY – Basf Se – slide 2
    Cautionary note regarding forward-looking statements This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the…
  3. CAPITAL MARKET STORY – Basf Se – slide 3
    We create chemistry for a sustainable future Positioning Performance Perspective Ludwigshafen, Germany Nanjing, Antwerp, China Belgium Kuantan, Geismar, Malaysia USA Freeport, USA Verbund site The 1 chemical company A…
  4. CAPITAL MARKET STORY – Basf Se – slide 4
    BASF today a well-balanced portfolio Total sales 2013: 74 billion Percentage of sales 2013* BASF Capital Market Story May 2014 * Not depicted here: 6% of Group sales reported as Other 4
  5. CAPITAL MARKET STORY – Basf Se – slide 5
    Business review BASF strategy & growth targets Strategic levers BASF Capital Market Story May 2014 5
  6. CAPITAL MARKET STORY – Basf Se – slide 6
    Good start to the year in chemicals business, Oil & Gas considerably down Business performance Q114 Q113 vs. Q113 Sales 19.5 billion 19.7 billion (1%) EBITDA 3.0 billion 2.9 billion +3% EBIT before special items 2.1 billion 2.2 billion…
  7. CAPITAL MARKET STORY – Basf Se – slide 7
    BASF outperformed global chemical production by 3 percentage points p.a. Sales to third parties billion IFRS Impact 13.7 79 80 3.7 -0.5 -2.0 0.6 74 20.7 -4.8 -6.6 72 Volumes Prices Currencies M&A 60 Currencies M&A 16.6 Prices…
  8. CAPITAL MARKET STORY – Basf Se – slide 8
    Strong and profitable growth in emerging markets Sales BASF Group excl. Oil & Gas EBITDA BASF Group excl. Oil & Gas billion by location of customer billion by location of customer 59 60 10 CAGR 50 35% +10.2%* 33% 8 7.3 CAGR 40 CAGR…
  9. CAPITAL MARKET STORY – Basf Se – slide 9
    Strong track record of operational excellence BASF Group 20012013 Index CAGR 2001 2013 300 8% EBITDA 7% Sales 250 2% Fixed costs 200 150 100 50 2001 2003 2005 2007 2009 2011 2012 2013 rest.* BASF Capital Market Story May 2014 *…
  10. CAPITAL MARKET STORY – Basf Se – slide 10
    Strong free cash flow generation Free cash flow* in billion 3.9 4 3.7 3.5 3.3 3.2 3.2 3.2 3 2.6 2.5 2.6 2 1 0.8 0 2004 2005 2006 2007 2008 2009** 2010 2011 2012 2013 Q1 2014 * Cash provided by operating activities less…
  11. CAPITAL MARKET STORY – Basf Se – slide 11
    Attractive dividend yield Dividend per share Dividend payments in Dividend of 2.70 per share for 2013, an increase of 3.8% CAGR 2.70 2004-2013: Average annual 14% 2.50 2.60 2.20 dividend increase of 14% 1.95 1.95 Attractive…
  12. CAPITAL MARKET STORY – Basf Se – slide 12
    Delivering consistent, long-term value Average annual performance with dividends reinvested Last 10 years Last 5 years May 2004 April 2014 May 2009 April 2014 +19.0% BASF +29.2% +4.5% Euro Stoxx 50 +9.7% +9.2% DAX 30…
  13. CAPITAL MARKET STORY – Basf Se – slide 13
    Outlook 2014 confirmed Outlook 2014 We aim to increase our sales volumes excluding the effects of acquisitions and divestitures. Nonetheless, sales will decline slightly compared with 2013 due to the divestiture of the gas trading and…
  14. CAPITAL MARKET STORY – Basf Se – slide 14
    Business review BASF strategy & growth targets Strategic levers BASF Capital Market Story May 2014 14
  15. CAPITAL MARKET STORY – Basf Se – slide 15
    Demographic challenges set the stage for the future of the chemical industry Nine billion people in 2050 but only one earth Resources, Environment Food & Nutrition Quality of Life & Climate Chemistry as enabler BASF…
  16. CAPITAL MARKET STORY – Basf Se – slide 16
    Key financial targets 2015 / 2020 are ambitious Growth targets Profitability targets Grow at least 2 percentage Earn a premium on cost of points above chemical capital of at least 2.0 billion production on average p.a. Sales 80…
  17. CAPITAL MARKET STORY – Basf Se – slide 17
    Business review BASF strategy & growth targets Strategic levers Portfolio development Market approach Innovations for a sustainable future Investments Acquisitions Operational excellence BASF Capital Market Story May 2014…
  18. CAPITAL MARKET STORY – Basf Se – slide 18
    A different look at our current portfolio... Oil & Gas Classical Chemicals Customized Functionalized Products Materials & Solutions Excellent position and Chemical business Customer-oriented Integration of growth opportunities;…
  19. CAPITAL MARKET STORY – Basf Se – slide 19
    Portfolio development Moving downstream towards customer industries Functionalized Materials Classical Chemicals Customized Products & Solutions Chemical Industry First customer industries* 2001 in % of 50% 50% sales** 2010 in…
  20. CAPITAL MARKET STORY – Basf Se – slide 20
    Portfolio development Towards more market driven and innovative businesses Acquisitions BASF Divestitures core business Engineering plastics Pharma Selected transactions Electronic chemicals 2001 today* Fibers Catalysts Printing…
  21. CAPITAL MARKET STORY – Basf Se – slide 21
    Market approach Cross-divisional customer industry approach BASF sales by Bubble Size: BASF divisional sales by first customer industry*/** first customer industry* Consumer goods 15 % Transportation 15 % Construction 10 %…
  22. CAPITAL MARKET STORY – Basf Se – slide 22
    Cross-divisional approach BASFs technology Verbund combined with customer know-how Lightweight tridion cell Solar roof with transparent organic solar panels and OLED modules High performance foams E-textiles Infrared-reflective…
  23. CAPITAL MARKET STORY – Basf Se – slide 23
    Customer Verbund - adidas and BASF Working together for disruptive innovation: Infinergy BASF Capital Market Story May 2014 23
  24. CAPITAL MARKET STORY – Basf Se – slide 24
    Strong commitment to innovation Innovations for a sustainable future R&D expenditures Key facts in billion 1.8 billion R&D expenditure in 2013, further increase of R&D 2.0 2,0 spending planned in 2014 1.8 1.7 1.6 Corporate Research…
  25. CAPITAL MARKET STORY – Basf Se – slide 25
    Chemistry-based innovations Growth and technology fields Global needs Key customer industries Growth fields Technology fields Batteries for Mobility Enzymes Resources, Materials, Environment Transportation Agriculture E-Power…
  26. CAPITAL MARKET STORY – Basf Se – slide 26
    Enabling technology: Battery Materials Driving the future of electromobility Business potential 2020 BASF activities Strategic relevant market: 5 billion globally Start of business unit Battery Materials in 2012 (4 billion in Asia…
  27. CAPITAL MARKET STORY – Basf Se – slide 27
    Investments Capex budget 2014-2018 by segment and region* Capex budget 2014-2018 Capex budget 2014-2018 by segment by region Performance Asia Pacific Products 18% 15% Chemicals South Europe Functional 33% America 49% Materials & 20 4%…
  28. CAPITAL MARKET STORY – Basf Se – slide 28
    Investments Major projects BASF Capital Market Story May 2014 * Under evaluation 28
  29. CAPITAL MARKET STORY – Basf Se – slide 29
    Sales share from emerging markets to further increase Developed markets* Emerging markets 2001 in % of sales 78% 22% (28 bn**) 2013 in % of sales 67% 33% (59 bn**) 2020 in % of 55% 45% sales** *BASF definition:…
  30. CAPITAL MARKET STORY – Basf Se – slide 30
    Acquisitions will contribute to profitable growth in the future We want to acquire businesses which Generate profitable growth Provide a minimum return on above the industry average investment of 8% p.a. after tax Are…
  31. CAPITAL MARKET STORY – Basf Se – slide 31
    Operational excellence programs STEP program on track: 1 billion earnings contribution by 2015 Annual earnings contribution STEP program in million Targeted annual earnings contribution of 1 billion by end of 2015 3,000 Optimization…
  32. CAPITAL MARKET STORY – Basf Se – slide 32
    Restructuring in Performance Products Announced measures to strengthen competitiveness Business Measures Leather and Establishment of global innovation center in China textile chemicals Optimization of various functions and…
  33. CAPITAL MARKET STORY – Basf Se – slide 33
    Appendix: Q1 2014 Reporting BASF Capital Market Story May 2014 33
  34. CAPITAL MARKET STORY – Basf Se – slide 34
    Portfolio optimization & development BASF Capital Market Story May 2014 34
  35. CAPITAL MARKET STORY – Basf Se – slide 35
    Chemicals Continued volume increase, but lower prices Q114 segment sales (million ) vs. Q113 EBIT before special items (million ) Intermediates Monomers 711 1,590 800 +2% (5)% 650 601 600 495 527 510 4,398 400 0% 200…
  36. CAPITAL MARKET STORY – Basf Se – slide 36
    Performance Products Continued strong volume growth Q114 segment sales (million ) vs. Q113 EBIT before special items (million ) Care Chemicals Performance 1,264 Chemicals 600 (1)% 818 0% 394 427 379 376 Nutrition 3,872 400 & Health…
  37. CAPITAL MARKET STORY – Basf Se – slide 37
    Functional Materials & Solutions Strong demand from automotive industry Q114 segment sales (million ) vs. Q113 EBIT before special items (million ) Construction Performance Chemicals Materials 350 443 293 300 311 1,614 300 (3%) 239…
  38. CAPITAL MARKET STORY – Basf Se – slide 38
    Agricultural Solutions Good start to the year Q114 segment sales vs. Q113 Q114 EBIT before special items vs. Q113 (million ) (million ) 2.000 600 1,653 498 510 1,556 1.500 400 1.000 200 500 0 0 Q1 Q1 Q1 Q1 2013 2014 2013…
  39. CAPITAL MARKET STORY – Basf Se – slide 39
    Oil & Gas Lower sales and earnings, net income increased Q114 segment sales (million ) vs. Q113 EBIT bSI/Net income (million ) Natural Gas Exploration & Trading Production 800 3,484 792 630 (10%) 0% 600 494 4,276 400 468 -8% 429 200…
  40. CAPITAL MARKET STORY – Basf Se – slide 40
    Review of Other Million Q114 Q113 Sales 1,077 1,065 EBIT before special items (203) (182) thereof Corporate research (102) (98) Group corporate costs (49) (56) Currency results, hedges and other (95) 56 valuation effects Styrenics,…
  41. CAPITAL MARKET STORY – Basf Se – slide 41
    Strong operating cash flow Million Q114 Q113 Cash provided by operating activities 1,704 2,041 thereof Changes in net working capital (1,052) (713) Miscellaneous items 578 615 Cash used in investing activities (770) (1,637) thereof…
  42. CAPITAL MARKET STORY – Basf Se – slide 42
    Balance sheet remains strong Balance sheet March 31, 2014 vs. December 31, 2013 Highlights March 31, 2014 (billion ) Short-term assets increased by 3.2 billion 67.9 67.9 Inventories rose slightly by 0.3 64.4 64.4 billion 28.4…
  43. CAPITAL MARKET STORY – Basf Se – slide 43
    Outlook 2014 confirmed Outlook 2014 We aim to increase our sales volumes excluding the effects of acquisitions and divestitures. Nonetheless, sales will decline slightly compared with 2013 due to the divestiture of the gas trading and…
  44. CAPITAL MARKET STORY – Basf Se – slide 44
    Outlook 2014 Expectations for the global economy Forecast 2014 2013 GDP 2.8% 2.3% Chemicals (excl. pharma) 4.4% 4.6% Industrial production 3.7% 2.5% US / Euro 1.30 1.33 Oil price: Brent (US / bbl) 110 109 BASF Capital Market…
  45. CAPITAL MARKET STORY – Basf Se – slide 45
    Outlook 2014 by region Chemical production (excl. pharma) Forecast 2014 2013 World 4.4% 4.6% EU 1.1% 0.0% USA 2.8% 3.2% Asia (excl. Japan) 7.2% 8.5% Japan 2.5% 1.8% South America 2.4% 1.3% BASF Capital Market Story May 2014 45
  46. CAPITAL MARKET STORY – Basf Se – slide 46
    Outlook 2014 Forecast by segment EBIT before special items (million ) 2013 Forecast 2014 Chemicals 2,182 slight decrease Performance Products 1,365 considerable increase Functional Materials & Solutions 1,070 considerable increase…
  47. CAPITAL MARKET STORY – Basf Se – slide 47
    Appendix: Update Oil & Gas BASF Capital Market Story May 2014 47
  48. CAPITAL MARKET STORY – Basf Se – slide 48
    EBITDA and capex share of Oil & Gas in BASF portfolio Average EBITDA* 2009-2013 (billion ) Key facts 2009-2013: Oil & Gas: Solid profit BASF Group contributor to BASF Group Oil & Gas 2009 w/o Oil & Gas Oil & Gas accounted for 31% of…
  49. CAPITAL MARKET STORY – Basf Se – slide 49
    Oil & Gas Continuous production growth Production (million boe) 200 175 150 144 130 136 133 132 132 125 109 112 111 112 113 104 100 75 50 25 0 2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012 2012 2013* restated** * Oil…
  50. CAPITAL MARKET STORY – Basf Se – slide 50
    Oil & Gas provides earnings stability EBIT before special items BASF Group* (million ) Excluding non-compensable taxes on oil production 8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011…
  51. CAPITAL MARKET STORY – Basf Se – slide 51
    Strong earnings contribution from Oil & Gas Net income Oil & Gas (million ) 2.100 1.780* 1.800 1.500 1.201 1.200 1.064 951 923 857 789 900 712 601 600 433 480 300 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013…
  52. CAPITAL MARKET STORY – Basf Se – slide 52
    Oil & Gas Strong free cash flow contribution to BASF Group Cash flow Oil & Gas* (million ) 2.000 1.500 1.000 500 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Operating cash flow Oil & Gas Free cash flow** Oil &…
  53. CAPITAL MARKET STORY – Basf Se – slide 53
    Oil & Gas Focus on upstream activities Oil & Gas Value Chain Upstream Downstream Exploration / Development / Production Transport Storage / Trading BASF Capital Market Story May 2014 53
  54. CAPITAL MARKET STORY – Basf Se – slide 54
    Exploration & Production Regional footprint 2013 (1) Production by region 2013 (million boe) Production Europe Russia stands for roughly 50% 18% of total production North Africa/ 132 Middle East million Russia In 2013, natural gas…
  55. CAPITAL MARKET STORY – Basf Se – slide 55
    Exploration & Production Regional footprint 2013 (2) Sales E&P by region 2013 (million ) Sales Europe account for around 40% Europe 37% of sales 3.7 Russia 29% billion North Africa/ Middle East South America 24% 10% Net income…
  56. CAPITAL MARKET STORY – Basf Se – slide 56
    Exploration & Production Increased reserve base 1P Reserves* (million boe) R/P (years) Key facts 1.600 12 R/P ratio increased to 11 years 1.400 10 Total 1P reserves (2013) 1.200 1,458 million boe 8 1.000 Gas accounts for roughly 80%…
  57. CAPITAL MARKET STORY – Basf Se – slide 57
    Russia Asset swap with Gazprom (Achimov Blocks IV and V) Expansion of successful partnership with Gazprom Strengthening of E&P activities by acquiring shares in Blocks IV and V in the huge Achimov formation Exit of natural gas trading…
  58. CAPITAL MARKET STORY – Basf Se – slide 58
    Transaction with Statoil closed* Significant increase in cash flow and EBIT Production increase by 37,000 boepd Compensation Operatorship of payment Brage platform 588 800 million** * Closed on July 31, 2013 ** Agreed upon…
  59. CAPITAL MARKET STORY – Basf Se – slide 59
    Portfolio optimization in the northern North Sea Maria 50% share Wintershall* To MOL2: Cladhan Knarr 33.5% share 20% share Sterling* BG* Gja 15% share Broom Skarfjell GDF Suez* 29% share 35% share EnQuest* Wintershall* Vega 30%…
  60. CAPITAL MARKET STORY – Basf Se – slide 60
    Exploration & Production Excellent further growth opportunities Production volumes (million boe) Key Facts 2015 target maintained despite 200 restatement in 2012 caused by 160 changes in IFRS (Effect*: -18 million boe in 2012) 150…
  61. CAPITAL MARKET STORY – Basf Se – slide 61
    BASFs Oil & Gas division Summary and roadmap 2015 Ambitious growth target for 2015 despite restatement Strong portfolio with access to high potential acreage Solid project pipeline / focus on execution & operational excellence…
  62. CAPITAL MARKET STORY – Basf Se – slide 62
    62 BASF Capital Market Story May 2014 62

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