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Basf plastics business realignment
1. Strategic alignment of BASF’s
plastics business
Dr. Martin Brudermüller
Vice Chairman of the Board of Executive Directors of
BASF SE
0
We create chemistry
for a sustainable future
We add value as
one company
We innovate to make our
customers more successful
We drive sustainable
solutions
We form the
best team
1
2. From molecules to materials & solutions
Chemistry as a key
technology and
interdisciplinary (physics,
biology, engineering, etc.)
Development closer to
and with customers
New applications with
improved properties from
established materials
New
molecules
Improved
applications
Functional
materials &
solutions
1960 1970 1980 1990 2000 2010 2020
2
Year
Global megatrends call for plastic
solutions
Opportunities for plasticsMegatrends
Lower emissions through reducing weight of
automotives
High-efficiency insulation for buildings
Renewable energy such as wind power and
solar
High-performance plastic additives to improve
properties
Biobased plastics
Resources,
environment and
climate
Food and nutrition
Quality of life
3
3. million metric tons
Continuing strong growth in global
demand for plastics
Includes thermoplastics, polyurethanes, thermosets, elastomers, adhesives, coatings and sealants,
PP-fibers; not including: PET, PA and polyacrylic fibers
2012 demand by region
Source: PlasticsEurope
0
50
100
150
200
250
300
1950 1960 1970 1980 1990 2000 2010
* Not including other plastics (47 million metric tons)
Global demand
23.4%
19.9%
23.9%
20.7%
12.1% 100%241 million
metric tons*
China WorldAsia
Pacific
(not incl.
China)
Europe
(incl. CIS)
North
America
South
America,
Middle East,
Africa
4Source: PlasticsEurope
Strategic measures
in BASF’s plastics business
Organizational realignment of BASF’s plastics business
Systematic entry into new growth markets like wind energy
Innovative use of renewable feedstock
Innovation as a driver of growth and differentiation
5
4. Organizational realignment of
BASF’s plastics business
Petrochemicals
e.g. Amines
e.g. TDI
e.g. monomers
e.g. epoxy systems
e.g. PU systems
e.g. Ultramid®
Monomers
Intermediates
Petrochemicals
Commodities Functional Materials & Solutions
Performance Materials
Polyurethanes
Performance Polymers
Inorganics
Intermediates
6
Since
January
2013
Until
2012
Strengthening our Production Verbund
and getting closer to customers through
innovation
7
Custom-built solutions
Technical service
Joint development projects
Intensive research
Specialties
Cost efficiency and supply security
Economies of scale
Technology leadership
Integrated production
Commodities
Strength through world scale Strength through customer closeness
5. Investments and activities in the
downstream specialty business
8
Cast elastomers
Polyamide
polymers
Alliance with TenCate
& Owen Corning
TPU Lemförde
Ultrason®
PU
system houses
Styrolution
ecoflex®
Lightweight
composites team
Neopor ®
Engineering
plastics
Segment and reporting structure focus
since January 2013
Crop
Protection
Performance
Products
Dispersions &
Pigments
Care
Chemicals
Functional
Materials &
Solutions
Agricultural
Solutions
Performance
Chemicals
Nutrition &
Health
Paper
Chemicals
Oil & Gas
Oil & Gas
Chemicals
Monomers
Intermediates
Petrochemicals
Functional
Materials &
Solutions
Construction
Chemicals
Coatings
Catalysts
Performance
Materials
9
6. Wind energy: a growth market with
technological challenges
Size Ø: 17-fold
Performance: 400-fold
10
annual installed capacity (GW)
PBT GF30 non-HR
Market growth
0
10
20
30
40
50
60
70
80
2000 2005 2010 2012 2015 2020
Trends 1980-2020:
Cologne Cathedral
2000 kW
20000 kW
50 kW
1980
Ø 15 m
2000
Ø 112 m
2020
Ø 252 m
Soccer field
Source: BTM WMU 2012
Systematic entry to the growth market of
wind energy
11
Blade root
Composite
Structural
adhesive
Shear web
Sandwich incl.
core material
Spar
Composite
Shell
Sandwich
with core material
Coating
Including finishing and repair
Baxxodur®
Hardened rotor blades
Multi-material systemsKerdyn®
Rotor blade model
7. 0
1
1
6
0
1
2
3
4
5
6
7
2009 2010 2011 2016
Biopolymers growth market
12
Biopolymer market
share 2012
0.4 %
of the global
plastics market
Source: European Bioplastics/IfBB
Forecast
million metric tons
Global biopolymer capacity
280
m t
Polymers in the BASF portfolio based
on renewable resources
13
Ultramid® S Balance
partially biobased
ecovio®
partially biobased, biodegradable
Lupranol® Balance
partially biobased
8. BASF mass balance methodology
– systematic integration in the Verbund
Cost-effective integration of renewable resources in the existing Production
Verbund
Flexible feedstock according to customer demand for nearly every product
No loss of product quality
Feedstock allocated to certified products
Certification by TÜV SÜD
14
MarketProductionResources
bio-
based
fossil
Products
certified
conventional
BASF Verbund
Innovation as a driver of
growth and differentiation
15
Membrane with nanopores
Composite: reactive resin + carbon fibers
1 Chemicals 10%
2 Performance Products 20%
3 Functional Materials & Solutions 20%
4 Agricultural Solutions 25%
5 Oil & Gas 2%
6 Corporate Research, Others 23%
1
2
3
5
6
4
approx.
€1.7
bn
Research and development 2012