BASF Charts Analyst Conference Call Q3-2013

7/27/2019 BASF Charts Analyst Conference Call Q3-2013

1/13

Third

Quarter 2013

Financial highlights

October 25, 2013

Robust 3rd Quarter 2013 for BASF


2/13

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

proposals described herein. Forward-looking statements may include, 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 and assumptions with

respect to future events and financial performance. Actual financial performance 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. 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.

2BASF Q3 2013 Analyst Conference Call October 25, 2013


3/13

Robust 3rdquarter 2013 for BASF

Sales development

Period Volumes Prices Portfolio Currencies

Q313 vs. Q312 6% (1%) 1% (5%)


Business performance Q313 vs. Q312 Q1-Q313 vs. Q1-Q312

Sales 17.7 billion +1.5% 55.8 billion +3%

EBITDA 2.5 billion +16% 7.8 billion (1%)

EBIT before special items 1.7 billion +15% 5.7 billion +6%

EBIT 1.7 billion +20% 5.6 billion (1%)

Net income 1.1 billion +18% 3.7 billion (4%)

Reported EPS 1.20 +19% 4.03 (4%)

Adjusted EPS 1.28 +10% 4.35 +1%

Operating cash flow 2.0 billion +21% 6.0 billion +19%


4/13

Cash offer of 4 US dollarsper share,

Offer expires on October

31, 2013 Enterprise value

~62 million US dollars

Acquisition will strengthenBASFs footprint in theenzyme growth market

Optimization of globalproduction network

Reduction of 650 positions

worldwide Investment of 250 million

in production and R&D

Transaction completedJuly 31, 2013

Increased production from3,000 to ~40,000 boe perday in Norway

Compensation payment of781 million US dollars*

Important corporate developments

4

Transaction with Statoil

completedRestructuring in Pigments

business

Cash of fer for Verenium

enzyme biotechnology

BASF Q3 2013 Analyst Conference Call October 25, 2013

* Euro/dollar exchange rate July 31, 2013: 1= $1.3275


5/13

ChemicalsPressure on volumes and margins

Intermediates

700

(7%)

Monomers

1,599

(11%)

Petrochemicals

1,925

(6%)

4,224(8%)

Q313 segment sales(million ) vs. Q312

Sales development

Period Volumes Prices Portfo lio Currencies

Q313 vs. Q312 (2%) (3%) 0% (3%)

5

EBIT before special items (million )

569

445

650

495 527

0

200

400

600

800

Q3 Q4 Q1 Q2 Q3

20132012



6/13

Performance ProductsGrowth in volumes and earnings

Performance

Chemicals

896

(3%)

Care Chemicals

1,209

(1%)

3,939(1%)

Paper Chemicals

365

(8%)


Nutrition

& Health

540

+10% Dispersions

& Pigments

929

(2%)


Sales development


Q313 vs. Q312 6% (3%) 1% (5%)

344

183

379 394 376

0

200

400

600

Q3 Q4 Q1 Q2 Q3


20132012


7/13

Functional Materials & SolutionsSound overall demand, especially in automotive

Catalysts

1,466

+12%

Construction

Chemicals

576

(9%)

Coatings

728

(5%)

4,439+3%


Sales development


Q313 vs. Q312 8% 2% (1%) (6%)

Performance

Materials

1,669

+5%

231 228 239

293 300

0

200

400

600

Q3 Q4 Q1 Q2 Q3

7



20132012


8/13

Agricultural SolutionsSales growth despite pronounced currency headwinds


Sales development


Q313 vs. Q312 8% 4% 3% (10%)

0

100

200

Q3 Q3

0

300

600

900

1.200

Q3 Q3

1,054 1721711,008

8


20132012


20132012


9/13

103

318

62

451

0

100

200

300

400

500

Q3/2012 Net Income Q3/2013 Net Income

Oil & GasSubstantially higher net income

Exploration &

Production

754

+15%

Natural Gas

Trading

2,376

+29%

3,130+25%

Q313 segment sales(million ) vs. Q312 EBIT bSI/Net income (million )

Natural Gas Trading

Exploration & Production

Net income

Sales development

Period Volumes Prices/Currencies Portfo lio

Q313 vs. Q312 22% (2%) 5%

499

396 360

422



10/13

Review of Other

Million Q313 Q312

Sales 947 1,087

EBIT before special items (105) (343)

Thereof Corporate research

Group corporate costsCurrency result, hedges and other

Valuation effects

Other business

(90)

(57)(74)

59

(95)

(63)(249)

30

Special items (24) (44)

EBIT (129) (387)



11/13

Cash FlowExcellent cash flow in Q1-Q3 2013

Million Q1-Q313 Q1-Q312

Cash provided by operating activi ties 5,982 5,025

Thereof Changes in net working capital

Miscellaneous items

374

(327)

(639)

(450)

Cash prov ided by investing activi ties (4,629) (2,018)

thereof Payments related to tangible / intangible assets (3,038) (2,702)

Acquisitions / divestitures (1,093) 411

Cash used in financing activit ies (1,300) (3,383)

thereof Changes in financial liabilities

Dividends

1,304

(2,604)

(868)

(2,510)

Net working capital decreased

Increased capex at 3 billion

Strong free cash flow of 2.9 billion against 2.3 billion in 2012

Equity ratio of 41%; net debt increased by 1.8 billion to 13 billion

Q1-Q3 2013



12/13

We do not anticipate an acceleration of global economic growth in the 4thquarter of 2013

For the full year, BASF confirms its outlook: We strive to exceed the record levels in sales andEBIT before special items in a challenging economic environment

Our focus on growth markets and innovation, in combination with our measures to optimizeour portfolio and to improve operational excellence, will contribute to this

We aim to earn a high premium on cost of capital in 2013

Outlook 2013

GDP: +2.0% (unchanged)

Industrial production: +2.7% (unchanged)

Chemical production: +3.1% (unchanged)

US$ / Euro: 1.30 (unchanged)

Oil price (US$ / bbl): 105 (unchanged)

Assumpt ions 2013

Outlook 2013



13/1313

BASF Charts Analyst Conference Call Q3-2013

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