BASF Capital Market Story · 2018-11-17 · BASF Capital Market Story November 2016. 6. 150 years...
Transcript of BASF Capital Market Story · 2018-11-17 · BASF Capital Market Story November 2016. 6. 150 years...
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BASF Capital Market Story November 2016 1
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BASF Capital Market Story
Manfredo RuebensPresidentRegional Functions North America,CFO BASF Corporation
Baird 2016 Industrial ConferenceChicago
November 9, 2016
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BASF Capital Market Story November 2016 2
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Cautionary note regarding forward-looking statements
This presentation may contain forward-looking statements that are subject to risks anduncertainties, including those pertaining to the anticipated benefits to be realized from theproposals described herein. Forward-looking statements may include, in particular, statementsabout 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 and assumptions with respect to future events and financialperformance. Actual financial performance could differ materially from that projected in theforward-looking statements due to the inherent uncertainty of estimates, forecasts andprojections, and financial performance may be better or worse than anticipated. Given theseuncertainties, readers should not put undue reliance on any forward-looking statements. Theinformation contained in this presentation is subject to change without notice and BASF doesnot undertake any duty to update the forward-looking statements, and the estimates andassumptions associated with them, except to the extent required by applicable laws andregulations.
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BASF Capital Market Story November 2016 3
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Chemistry as an enabler BASF has superior growth
opportunities: – sustainable innovations– investments– emerging markets
The #1 chemical company €70.4 billion sales, €6.7
billion EBIT bSI in 2015 #1-3 in ~70% of businesses,
present in almost all countries
6 integrated Verbund sites, production in 60 countries
A track record of strong sales and earnings growth
>3.5% dividend yield in every single year from 2006-2015
~€73.6 billion market capitalization on October 27, 2016
PerspectiveLudwigshafen,Germany
Antwerp,Belgium
Nanjing,China
Kuantan,MalaysiaGeismar,
LouisianaFreeport,Texas
Verbund site
Positioning
We create chemistry for a sustainable future
Performance
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Percentage of sales 2015*
* Not depicted here: ~4% of Group sales reported as ‘Other‘ ** Natural Gas Trading has been divested on Sep. 30, 2015.
BASF today – a well-balanced portfolioTotal sales 2015: €70.4 billion
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Global reduction in carbon emissions of 6 million metric tons p.a. and reduction of waste
Example Ludwigshafen site:avoidance of 7 million metric tons of freight p.a.= 280,000 fewer truckloads
Shared use of on-site facilities: fire department, security, waste water treatment and analytics
Verbund: Unique competitive advantage
* Savings include only tangible synergies. Additional (intangible) benefits and retained profits are not included.
Verbund generates >€1 billion p.a. global cost savings* and supports sustainability
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€1.95 billion R&D expendituresin 2015; to be maintained in 2016
~10,000 employees in R&D
~3,000 projects
Ranked No.1 in thePatent Asset Index™
~1,000 new patents in 2015
Research Verbund: Cooperations with more than 600 excellent partners from universities, start-upsand industry
Strong commitment to innovationInnovations for a sustainable future
Key facts
1.61.7
1.8 1.9 1.95
0.0
0.5
1.0
1.5
2.0
2011 2012 2013 2014 2015
R&D expenditures (billion €)
Chemicals11%
Performance Products20%
Functional Mat. & Sol.20%
Agricultural Solutions26%
Oil & Gas2%
Corporate Research21%
2.0
1.5
1.0
0.5
0
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Investments for organic growth
Performance Products16%
Oil & Gas24%
€19.5billion
FunctionalMaterials &Solutions12%
Capex budget 2016-2020
Other14%
Chemicals30%
Capex budget 2016-2020
Asia Pacific18%
€19.5billion
South America*9%
North America26%
Europe46%
AgriculturalSolutions4%
Other1%
by segment by region
* Including Africa and Middle East
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Functional crop care Personal care & food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in Oil & Gas Refinish coatings Surface treatment*
BASFcore business
Strong partnerships
Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara
Selected transactions 2010 − until today
Acquisitions
~ €5.2 billion salesin emerging and innovation-driven
businesses
Divestitures
Styrenics Fertilizers Selected assets in Oil & Gas Natural gas trading & storage Custom synthesis business Textile chemicals Polyolefin catalysts Industrial coatings*
~ €20 billion sales*in businesses with
limited fit and differentiation
potential
Portfolio development towards more market-driven and innovative businesses
* Closing expected in 2016
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50
100
150
200
250
300
350
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Strong track record in operational excellence
EBITDA
Sales
* Excl. companies with major IFRS 10/11 restatements, i.e. BASF YPC Nanjing, Libya onshore, other Oil & Gas and Catalysts companies
BASF Group* 2001–2015(indexed; CAGR 2001–2015)
Fixed Costs
CAGREBITDA
9%
CAGRSales
6%
CAGRFixed Costs3%
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0
1,000
2,000
3,000
4,000
2015 2018
Annual earnings contribution(in million €)
Targeted annual earnings contribution of €1 billion from end of 2018 on
Optimization of processes and structures in all regions, e.g.– manufacturing– incremental capacities– productivity increase
Project timeline: 2016–2018
DrivE program
Strategic lever: Operational excellenceDrivE with ~€1 billion earnings contribution
NEXT 2008-2011 DrivE 2016-2018
STEP 2012-2015
Diagramm1
2015201520152015
2018201820182018
Sheet1!#REF!
NEXT
STEP
NewPro
1000
1300
1000
1300
1000
Sheet1
201420152018
NEXT100010001000
STEP100013001300
NewPro1000
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0
1
2
3
4
5
2007 2008 2009** 2010 2011 2012 2013 2014 2015 Q1-Q32016
Free cash flow development
* Cash provided by operating activities less capex ** 2009 adjusted for re-classification of settlement payments for currency derivatives
Free cash flow*(in billion €)
3.2
2.5
3.2
3.9 3.7
2.6
3.2
1.7
3.6
2.9
Diagramm1
2007
2008
2009**
2010
2011
2012
2013
2014
2015
Q1-Q3 2016
Free Cash Flow
3.245
2.502
3.186
3.912
3.695
2.587
3.21
1.7
3.6
2.9
Sheet1
200720082009**201020112012201320142015Q1-Q3 2016
Free Cash Flow3.2452.5023.1863.9123.6952.5873.2101.73.62.9
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0.0
0.5
1.0
1.5
2.0
2.5
3.0
2006 2009 2012 2015
2.90
We want to grow or at least maintain our dividend at the previous year’s level
Dividend of €2.90 per share, an increase of 3.6%
Dividend yield of 4.1% in 2015
Dividend yield above 3.5%in any given year since 2006
4.6%
Attractive shareholder return
Key facts 2015
Dividend per share (€)
0.50
1.00
1.50
2.00
* Dividend yield based on share price at year-end
4.1% 3.8% 7.0% 3.9% 3.7%Yield* 3.7%
2.50
3.5%
3.00
4.0% 4.1%
1.50
1.95 1.951.70
2.202.50 2.60 2.70
Dividend policy
2.80
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Average annual performance with dividends reinvested
0 3 6 9 12 15
Euro Stoxx 50
DAX 30
MSCI World Chemicals
+5.5%
Last 5 yearsNovember 2011 – October 2016
+12.5%
+8.3%
+11.7%
+9.9%
Last 10 yearsNovember 2006 – October 2016
BASF
+6.9%
+0.4%
+13.1%
Delivering consistent, long-term value
Diagramm1
MSCI World
DAX
Euro Stoxx
BASF
Ost
9.1%
12.0%
8.1%
6.9
5.5
0.4
13.1
Sheet1
MSCI WorldDAXEuro StoxxBASF
Ost6.95.500.413.1
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Slide Number 1Cautionary note regarding �forward-looking statements We create chemistry �for a sustainable futureBASF today – a well-balanced portfolio�Total sales 2015: €70.4 billionVerbund: Unique competitive advantageSlide Number 6Investments for organic growthPortfolio development towards more market-driven and innovative businessesStrong track record in operational excellence Strategic lever: Operational excellence�DrivE with ~€1 billion earnings contributionFree cash flow developmentSlide Number 12Slide Number 13Slide Number 14