BASF Capital Market Story, August 2016 1BASF Capital Market Story
Ingo RoseDirectorInvestor Relations
Roadshow Minneapolis, Madison,Milwaukee
August 4-5, 2016
BASF Capital Market Story, August 2016 2
150 years
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.
BASF Capital Market Story, August 2016 3
150 years
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
~€66 billion market capitalization on July 25, 2016
PerspectiveLudwigshafen,Germany
Antwerp,Belgium
Nanjing,China
Kuantan,MalaysiaGeismar,
LouisianaFreeport,Texas
Verbund site
Positioning
We create chemistry for a sustainable future
Performance
BASF Capital Market Story, August 2016 4
150 years
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
BASF Capital Market Story, August 2016 5
150 years
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* & supports sustainability
BASF Capital Market Story, August 2016 6
150 years
Financial figures Q2 2016 Q2 2015 Change
Sales €14.5 billion €19.1 billion (24%)
EBITDA €2.8 billion €3.0 billion (7%)
EBIT before special items €1.7 billion €2.0 billion (16%)
EBIT €1.7 billion €2.0 billion (16%)
Net income €1.1 billion €1.3 billion (14%)
Reported EPS €1.19 €1.38 (14%)
Adjusted EPS €1.30 €1.49 (13%)
Operating cash flow €2.3 billion €2.8 billion (17%)
Sales development Volumes Prices Portfolio Currencies
Q2 2016 vs. Q2 2015 2% (7%) (16%) (3%)
Q2 2016: Financial figures for BASF Group
BASF Capital Market Story, August 2016 7
150 years
0
1
2
3
4
5
2007 2008 2009** 2010 2011 2012 2013 2014 2015 1HJ2016
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
1.4
H1
Diagramm1
2007
2008
2009**
2010
2011
2012
2013
2014
2015
1HJ 2016
Free Cash Flow
3.245
2.502
3.186
3.912
3.695
2.587
3.21
1.7
3.6
1.4
Sheet1
200720082009**2010201120122013201420151HJ 2016
Free Cash Flow3.2452.5023.1863.9123.6952.5873.2101.73.61.4
BASF Capital Market Story, August 2016 8
150 years
Outlook 2016 for BASF Group confirmed
Outlook 2016 Sales will be considerably below prior year due to the divestiture of the natural gas trading
and storage activities and the lower oil and gas prices. We expect EBIT before special items to be slightly below the previous year level due to
significantly lower earnings in Oil & Gas.
Assumptions 2016 GDP growth: +2.3% Growth in industrial production: +2.0% Growth in chemical production (excl. pharma): +3.4% Exchange rate: $1.10 per euro Oil price (Brent): $40 per barrel
BASF Capital Market Story, August 2016 9
Business development
Path forward: Our priorities
Appendix – Q2 2016 reporting
BASF Capital Market Story, August 2016 10
150 years
Components of growth
* 2010, 2011 indicative, adjusted for IFRS 10 & 11
59.6
70.4+10.5 -1.4
+2.6 -0.9
20
40
60
80
2010 2015
Volumes
PricesFX M&A
Sales* analysis 2010 – 2015 (in billion €)
(in billion €) Net sales 2010 Volumes Prices FX M&A Sales CAGR 2010 - 2015
BASF Group w/o Oil & Gas 51.4
+2.8 (+1.1% CAGR) -0.9 +2.6 +1.6 +2.3%
Oil & Gas 8.2 +7.7 (+14.2% CAGR) -0.5 +0.0 -2.5 +9.6%
3.4%
CAGR
BASF Capital Market Story, August 2016 11
150 years
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
BASF Capital Market Story, August 2016 12
150 years
Steady earnings growth
* 2010, 2011 indicative, adjusted for IFRS 10 & 11; 2001 – 2009 as reported, without non-compensable foreign income taxes on oil production
EBIT and EBITDA*(in billion €, 2001 - 2015)
3.7
4.7 4.6
7.0 7.2
8.48.9
7.7
6.5
9.9
11.2
10.010.4
11.010.6
0
2
4
6
8
10
12
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
EBITEBITDA
0.7
2.2 2.2
4.5 4.85.5
6.0
4.6
2.8
6.7
8.06.7 7.2
7.6
6.2
CAGREBITDA
7.9%CAGREBIT
16.6%
BASF Capital Market Story, August 2016 13
150 years
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%
BASF Capital Market Story, August 2016 14
150 years
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
BASF Capital Market Story, August 2016 15
150 years
Average annual performance with dividends reinvested
0 3 6 9 12 15
Euro Stoxx 50
DAX 30
MSCI World Chemicals
+5.5%
Last 5 yearsJuly 2011 – June 2016
+3.9%
+3.2%
+5.6%
+5.7%
Last 10 yearsJuly 2006 – June 2016
BASF
+6.9%
+0.7%
+12.4%
Delivering consistent, long-term value
Diagramm1
MSCI World
DAX
Euro Stoxx
BASF
Ost
9.1%
12.0%
8.1%
6.9
5.5
0.7
12.4
Sheet1
MSCI WorldDAXEuro StoxxBASF
Ost6.95.500.712.4
BASF Capital Market Story, August 2016 16
Business development
Path forward: Our priorities
Appendix – Q2 2016 reporting
BASF Capital Market Story, August 2016 17
150 years
Grow sales and earnings faster than global chemical production, driven by
– Continued focus on innovations
– Capital expenditures
– Acquisitions
– Operational excellence and Verbund advantages
Focus on cash generation/conversion
Continue with our progressive dividend policy
Focus on pruning our portfolio
Maintain industry-leading position in sustainability
The path forward: Our priorities
BASF Capital Market Story, August 2016 18
150 years
Managing volatility: BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe, 2015)
BASF hydrocarbon consumption almost equals hydrocarbon production
Production of oil, liquids and gas Consumption of oil derivatives and gas
153
>100
Naturalgas
Oil and liquids
Natural gas for energy and as raw material
Naphtha and other oil-based raw materials
40
113
BASF Capital Market Story, August 2016 19
150 years
0
100
200
300
400
500
2001 2002 2003 2004 2005 2006* 2007* 2008 2009 2010 2011 2012restated
2013 2014 2015
EBITDA margin Chemicals / oil price(indexed, 2001 = 100)
Chemicals with stable profitability, little correlation to oil price
EBITDA margin Chemicals(as % of sales)
Oil price
* Without Catalysts (now part of Functional Materials & Solutions segment)
BASF Capital Market Story, August 2016 20
150 years
Strategic lever: Continuous portfolio development
Specialties and solutions
Differentiated commodities
target(in % of sales*)
~ 50% ~ 50%
Maintaining a balanced portfolio
Divestment of businesses, e.g., due to loss of differentiation
Divestment of businesses, e.g., due to
lower market attractiveness
Commoditization leads to restructuring
Growth fields
Innovation pipeline
Acquisitions
* Excluding Oil & Gas sales
Attractive markets Differentiation by process
technologies and integration
Attractive markets Differentiation by customer
proximity and innovations
BASF Capital Market Story, August 2016 21
150 years
Provide a minimum return on investment of 8% p.a. after tax
Are EPS accretive by year three at the latest
Financial acquisition criteria
Generate profitable growth above the industry average
Are innovation-driven
Offer a special value proposition to customers
Reduce earnings cyclicality
Strategic acquisition criteria
We want to acquire businesses which …
Strategic lever: Acquisitions
BASF Capital Market Story, August 2016 22
150 years
BASF to acquire ChemetallTransaction highlights
Purchase price of US$3.2 billion (debt free)
All-cash offer, financing secured
Expected closing of transaction by the end of 2016
Synergies on industry-typical level
EPS accretive in year 1 excluding integration costs, in year 2 including integration costs
Transaction will significantly enhance BASF Coatings’ position as complete solutions provider
Chemetall – a global technology and innovation leader in metals surface treatment
BASF Capital Market Story, August 2016 23
150 years
Chemetall – a global leader in surface treatment products and services
FiguresFacts
Sales2015: US$845 million 2016E*: US$851 million2017E*: US$895 million
EBITDA2015: US$202 million2016E*: US$217 million2017E*: US$231 million
EBITDA margin2015: 24%2016E*: 25%2017E*: 26%
CAGR sales(2007 – 2015) ~7% (at constant exchange rates)
Key customer industries
Automotive, aerospace, coil,metal forming
Regional sales~50% Western Europe~30% North America~20% Emerging markets, mainly Asia
Employees ~2,500 (~50% sales professionals)
Sites 21 production sites in all regions10 R&D sites
One of the strongest globally managed brands in the sector
Proprietary manufacturing technologies, rigorous product quality and performance standards
Leading market positions in the automotive, aerospace and cold forming segments
Long-standing, service-intensive customer relationships
Significant global presence and record of accelerated expansion in emerging markets
Track record of strong growth and high profitability
* average analysts’ estimates
BASF Capital Market Story, August 2016 24
150 years
Chemetall complements BASF’s portfolio, adding highly attractive surface treatment
Chemetall
Pre-treatment
In-depth customer insights across wide industry range
Recognized technology leader in metal surface treatment
Complete portfolio beyond pure surface treatment
BASF
Coatings
Excellent customer access and approvals especially in automotive
Well recognized customer service offering in coatings
Chemical know-how and strong R&D platforms within BASF Group
Complete surface treatment provider
Offer full solution competence to customers across wide range of industries
Benefit from convergence of pre-treatment and coatings, offering superior product and process solutions
Develop superior application processes leveraging joint expertise
+
BASF Capital Market Story, August 2016 25
150 years
Chemetall – an excellent strategic fit for BASF Coatings
Technology adjacency
Compelling combination of surface treatment and coatings technologies Creates unmatched “solution competence” for customers
Access to key growth markets
Superior access to growth industries (e.g. automotive, aerospace) Global footprint with local production, technical centers in China and India
Downstream solution business
Complex formulation businesses based on application know-how Customer centricity, product quality and technical service as differentiators
Enhanced technology basis
Growth opportunities through combining broad technical and application competence with BASF’s chemistry and formulation know-how
Strong and robust financials
Excellent track record of growth above market and attractive margins “Asset light” business model with strong free cash flow conversion
Industry-leading expert team
High-quality resources and technical expertise ~1,200 sales professionals with in-depth application and process know-how
BASF Capital Market Story, August 2016 26
150 years
Strategic lever:Capital expenditures
Differentiated commodities With proprietary technology and/or Verbund advantages
Focus on:– emerging markets – backward integration in the U.S.– upgrading our asset base in Europe
Specialties and solutions Incremental investments for new products Regional expansion of businesses
Oil & Gas Focus investment budget by active portfolio optimization to secure free cash flow Keep reserve-to-production ratio of approx. 10 years
BASF Capital Market Story, August 2016 27
150 years
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
BASF Capital Market Story, August 2016 28
150 years
Strategic lever: Innovations Allow for creativity
Balance incremental und disruptive innovations
Manage innovation pipeline efficiently on all levels
Build on our global R&D Verbund
Leverage external collaborations even more
Align R&D activities with business models:
– Differentiated commodities• Focus on improving processes and addressing raw material change • Launch selected product innovations
– Specialties and solutions• Develop new, tailored offerings in close collaboration with customers• Pursue solution-oriented approach
Keep annual R&D spending at ~3% of sales*
* Without Oil & Gas
BASF Capital Market Story, August 2016 29
150 years
€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
BASF Capital Market Story, August 2016 30
150 years
0
50
100
150
BASF Competitors
FWC™Combines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate
Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions**
Removes particulatesFilters & combusts particulates
Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards
FWC™ introduced in 2013 Sustains BASF’s leading technology position
Leading position: Global mobile emissions catalysts patents*
* 2009 – 2013 ** Hydrocarbons, carbon monoxide, nitrogen oxides *** https://www.basf.com/en/company/news-and-media/science-around-us/catalytic-converter.html
FWC™ reduces emission of gaseous pollutants and particulates
HC
CO
NOx
N2
H2O
CO2
Particulates
Innovation: Four-Way Conversion Catalyst (FWC™)
BASF Capital Market Story, August 2016 31
150 years
InnovationAutomotive is a growth business for BASF
* Excl. precious metals, coatings refinish business;
BASF sales to Automotive vs. global vehicle production(indexed)
50%
75%
100%
125%
150%
175%
2007 2008 2009 2010 2011 2012 2013 2014 2015
BASF salesto Automotive
CAGR
6.7%
Global vehicleproduction
CAGR shown for 2007 – 2015
CAGR
2.8%
BASF Capital Market Story, August 2016 32
150 years
Innovation: Green Sense®Concrete for sustainable construction
BASF’s Green Sense® Concrete system consists of:
1) Innovative admixture products
2) Concrete mix services
3) Eco-efficiency analysis
Replaces up to 70% of cement with recycled materials
Superior eco-efficiency
Applied in the construction of landmark projects, e.g. One World Trade Center, NYC
Envi
ronm
enta
l Im
pact
ReferenceConcrete
High Low
Low
Total Cost of Ownership
Hig
h
BASF Capital Market Story, August 2016 33
150 years
Innovation: Trilon® MChelating agent for more sustainable detergents and cleaners
Trilon® M – alternative to phosphate for automatic dish washing High sustainability performance: bio-degradable and
eco-friendly Fast growing global market demand driven by
regulatory changes and consumer demand 2010: Capacity expansion to 120,000 tons 2015: Startup of a new Trilon® M world-scale plant in
Theodore, Alabama
Compared with alternative chelating agents Trilon® M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance
BASF Capital Market Story, August 2016 34
150 years
BASF Crop ProtectionEngagement in digital agronomic decision support
BASF invests in digital farming tools for improved decision support on the farm To focus on connecting data, technology and
people To improve productivity and sustainability
First tools are launched Maglis: New agricultural platform; offering a range
of practical and intuitive tools for gathering, interpreting and monitoring of crop management information
Tools: Maglis Crop Plan; Maglis Customer Navigator; Maglis Sustainability Assessment*
BASF Capital Market Story, August 2016 35
150 years
2.2% 0.2%
Novel methodology to screen and steer our portfolio*
26.6% Accelerators:– outgrow their markets
by 2-10%– deliver margins >10%
above the average– represent >60% of BASF’s
R&D pipeline 71% Performers
BASF Capital Market Story, August 2016 36
150 years
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
BASF Capital Market Story, August 2016 37
150 years
Profitability of BASF will grow faster than global chemical production
Sales growthSlightly faster than the global chemical production
EBITDA growthWell above global chemical production
Remain a strong cash providerContinuously generate high levels of free cash flow
Financial targets for the coming years
Deliver attractive returnsEarn a significant premium on cost of capital
Progressive dividend policy We want to grow or at least maintain our dividend
BASF Capital Market Story, August 2016 38
Business development
Path forward: Our priorities
Appendix – Q2 2016 reporting
BASF Capital Market Story, August 2016 39
150 years
ChemicalsHigher volumes, but continuing margin pressure
Intermediates680(8%)
Monomers1,371(13%)
Petrochemicals1,322(20%)
€3,373(15%)
EBIT before special items million €
548633
249
465 467
0
200
400
600
800
Q2 Q3 Q4 Q1 Q2
Sales development Volumes Prices Portfolio Currencies
Q2 2016 vs. Q2 2015 4% (17%) 0% (2%)
20162015
Sales Q2 2016 vs. Q2 2015million €
Diagramm1
Q2
Q3
Q4
Q1
Q2
EBIT bSI
548
633
249
465
467
Sheet1
Q2Q3Q4Q1Q2
EBIT bSI548633249465467
BASF Capital Market Story, August 2016 40
150 years
Performance Chemicals958(10%)
CareChemicals
1,178(3%)
€3,846(6%)Nutrition
& Health497(11%)
Dispersions& Pigments
1,213(3%)
304 319
228
547503
0
200
400
600
Q2 Q3 Q4 Q1 Q2
Sales development Volumes Prices Portfolio Currencies
Q2 2016 vs. Q2 2015 2% (3%) (3%) (2%)
EBIT before special items million €
20162015
Sales Q2 2016 vs. Q2 2015million €
Performance ProductsSignificant increase in earnings driven by lower fixed costs, improved margins and higher volumes
Diagramm1
Q2
Q3
Q4
Q1
Q2
EBIT bSI
304
319
228
547
503
Sheet1
Q2Q3Q4Q1Q2
EBIT bSI304319228547503
BASF Capital Market Story, August 2016 41
150 years
Functional Materials & SolutionsConsiderable earnings increase supported by all divisions
Catalysts1,508 (11%)
Coatings800(2%)
€4,703(4%)
Performance Materials1,766(1%)
458
371 389456
535
0
200
400
600
Q2 Q3 Q4 Q1 Q2
ConstructionChemicals
629+1%
EBIT before special items million €
Sales development Volumes Prices Portfolio Currencies
Q2 2016 vs. Q2 2015 5% (6%) 0% (3%)
20162015
Sales Q2 2016 vs. Q2 2015million €
Diagramm1
Q2
Q3
Q4
Q1
Q2
EBIT bSI
458
371
389
456
535
Sheet1
Q2Q3Q4Q1Q2
EBIT bSI458371389456535
BASF Capital Market Story, August 2016 42
150 years
Agricultural SolutionsDecrease in sales and earnings due to lower volumes and currency headwinds
1,678 1,459
3,576 3,239
0
1,000
2,000
3,000
4,000
Q2 2015 Q2 2016 H1 2015 H1 2016
(9%)
365 320
939 911
0
200
400
600
800
1,000
Q2 2015 Q2 2016 H1 2015 H1 2016
(12%)
Sales Q2 2016 vs. Q2 2015/H1 2016 vs. H1 2015million €
EBIT before special items Q2 2016 vs. Q2 2015/H1 2016 vs. H1 2015million €
(13%)
Sales development Volumes Prices Portfolio Currencies
Q2 2016 vs. Q2 2015 (8%) 1% 0% (6%)
(3%)
BASF Capital Market Story, August 2016 43
150 years
Oil & GasSignificantly lower sales and earnings
Natural Gas Trading
Exploration & Production
Net income
Sales development Volumes Prices/Currencies Portfolio
Q2 2016 vs. Q2 2015 2% (3%) (82%)
143
288
94250
1000
200
400
600
Q2 2015 Q2 2015 Q2 2016 Q2 2016
EBIT before special items, net income million €
Sales Q2 2016 vs. Q2 2015million €
431
2,964
617
704
0
1,000
2,000
3,000
4,000
5,000
Q2 Q220162015
Salesmillion €
(83%)
3,668
704
Natural Gas Trading
Exploration & Production
BASF Capital Market Story, August 2016 44
150 years
Review of “Other”
million € Q2 2016 Q2 2015
Sales 485 757
EBIT before special items (212) (63)
Thereof Corporate research costs (88) (102)Costs of corporate headquarters (56) (64)Foreign currency results, hedging andother measurement effects (116) 151
Other businesses 33 30Special items 65 (20)
EBIT (147) (83)
BASF Capital Market Story, August 2016 45
150 years
Cash flow in 1st half 2016
million € H1 2016 H1 2015
Cash provided by operating activities 3,339 5,143Thereof changes in net working capital (1,045) 877
miscellaneous items (122) (32)Cash used in investing activities (1,988) (3,331)Thereof payments related to tangible/intangible assets (1,979) (2,845)
acquisitions/divestitures 51 (15)
Cash used in financing activities (1,814) (1,033)
Thereof changes in financial liabilities 944 1,723dividends (2,768) (2,803)
BASF Capital Market Story, August 2016 46
150 years
Strong balance sheet
Total assets increased by €1.3 billion on higher trade accounts receivable and deferred taxes
Inventories were stable at €9.7 billion
Provisions for pension obligations increased by €3.3 billion
Net debt at €14.1 billion Equity ratio: 40%
24.1 27.3
15.215.9
31.529.0
Dec 31,2015
June 30,2016
2.2 1.83.1 3.6
9.5 10.6
9.7 9.7
46.3 46.5
Dec 31,2015
June 30,2016
Liquid funds
Accountsreceivable
Long-termassets
Inventories
Other assets
70.8 72.2 70.8 72.2
Otherliabilities
Financialdebt
Equity
Balance sheet June 30, 2016 vs. December 31, 2015 billion €
BASF Capital Market Story, August 2016 47
150 years
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 advantageQ2 2016: Financial figures for BASF GroupFree cash flow developmentSlide Number 8Slide Number 9Components of growthPortfolio development towards more market-driven and innovative businesses�Steady earnings growthStrong track record in operational excellence Slide Number 14Slide Number 15Slide Number 16The path forward: �Our priorities��Managing volatility: BASF almost perfectly hedged on hydrocarbon price changesChemicals with stable profitability, �little correlation to oil priceStrategic lever: Continuous portfolio development Strategic lever: �Acquisitions �BASF to acquire Chemetall �Transaction highlightsChemetall – a global leader in surface treatment products and servicesChemetall complements BASF’s portfolio, adding highly attractive surface treatmentChemetall – an excellent strategic fit for BASF CoatingsStrategic lever:�Capital expendituresInvestments for organic growthStrategic lever: �Innovations Slide Number 29Slide Number 30Innovation Automotive is a growth business for BASF Innovation: Green Sense® �Concrete for sustainable constructionInnovation: Trilon® M�Chelating agent for more sustainable detergents and cleanersBASF Crop Protection�Engagement in digital agronomic decision supportStrategic lever: Sustainability �Sustainable Solution SteeringStrategic lever: Operational excellence�DrivE with ~€1 billion earnings contributionProfitability of BASF will grow faster than global chemical productionSlide Number 38Chemicals�Higher volumes, but continuing margin pressureSlide Number 40Functional Materials & Solutions�Considerable earnings increase supported by all divisionsAgricultural Solutions�Decrease in sales and earnings due to lower volumes and currency headwindsSlide Number 43Review of “Other” Cash flow in 1st half 2016�Strong balance sheetSlide Number 47
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