BASF FY2011 results

BASF: Fit for 2012 and beyond 4Q/FY’2011 Analyst Conference Ludwigshafen, February 24, 2012BASF 4Q/FY’2010 Conference | February 24th, 2011

Forward-looking statementsThis presentation includes forward-looking statements that are subject to risks anduncertainties, including those pertaining to the anticipated benefits to be realized from theproposals described herein. This presentation contains a number of forward-lookingstatements including, in particular, statements about future events, future financialperformance, plans, strategies, expectations, prospects, competitive environment,regulation and supply and demand. BASF has based these forward-looking statements onits views with respect to future events and financial performance. Actual financialperformance of the entities described herein 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.Forward-looking statements represent estimates and assumptions only as of the date thatthey were made. The information contained in this presentation is subject to change withoutnotice 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 byapplicable laws and regulations. 2

Agenda1 Highlights 20112 Outlook 20123 Financials Q4 2011 3

Record year 2011Business performance Q4’11 vs. Q4’10 FY’11 vs. FY’10 Sales €18.1 billion +10% €73.5 billion +15% EBITDA €2.9 billion +7% €12.0 billion +8% EBIT before special items €1.5 billion -14% €8.4 billion +4% EBIT €1.9 billion +15% €8.6 billion +11% Net income €1.1 billion +3% €6.2 billion +36% Reported EPS €1.23 +3% €6.74 +36% Adjusted EPS €1.05 -24% €6.26 +9% Operating cash flow €2.1 billion +80% €7.1 billion +10%Sales developmentPeriod Volumes Prices Portfolio CurrenciesQ4’11 vs. Q4’10  (1)%  9%  2% 0%FY’11 vs. FY’10 0%  12%  5%  (2)% 4

Major achievements in 2011Investments: Start-up of Nanjing expansion  Commissioning of Nord Stream and the OPAL pipeline Portfolio management: Completion of Cognis integration  Start of business of Styrolution JV with Ineos  Divestiture of K+S shares and agreement to sell fertilizer assets (Antwerp) Operational excellence: Completion of NEXT program – annual earnings contribution of more than  €1 billion as of 2012 5

Strong and profitable growth inemerging marketsSales BASF Group excluding Oil & Gasin billion € by location of customer 6160 34% Emerging markets40 28 Developed markets* 22%20 * BASF definition: Developed markets include EU15, Norway, Switzerland, North America, Japan, Australia, New Zealand 0 2001 2011 6

€2.6 billion premium on cost of capitalachieved in 2011Premium on cost of capitalin billion € 4,000 Target first 3.5 established 3,000 2.9 2.6 2.4 2.0 2.1 2,000 1.6 1,000 0 -0.2 -0.6 -0.6 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Cost of capital rate: 9% 11% 7

Attractive shareholder returnsDividend per share (€) Key facts  Average annual dividend Proposal: increase of 15.2% 2.502.50 2.5 (2002-2011) 2.202.00 2.0 1.95 1.95  Attractive dividend yield of 1.70 4.6% in 2011** 1.501.50 1.5  Dividend yield above 3% in any 1.00 given year since 20021.00 1.0 0.85 0.70 0.70 0.50.50 0.0 2002 2005 2008 2011Yield* 3.9% 3.1% 3.2% 3.1% 4.1% 3.8% 7.0% 3.9% 3.7% 4.6% * Dividend yield based on share price at year-end ** Based on BASF share price of €53.89 on Dec 30, 2011 8

Delivering consistent, long-term valueLong-term performance January 2002 – December 2011(average annual performance with dividends reinvested) Last 5 years +14.1% BASF +12.5% -1.9% Euro Stoxx 50 –7.4% +1.3% DAX 30 –2.2% +7.2% MSCI World Chemicals +2.4%-3 0 3 6 9 12 15 9

Outlook 2012Expectations for global economy 2011 Forecast 2012GDP 2.7% 2.7%Chemicals (excl. Pharma) 4.8% 4.1%Industrial production 4.7% 4.1%US$ / Euro 1.39 1.30Oil price (US$ / bbl) 111 110 11

Outlook 2012 by regionChemical production (excl. pharma) 2011 Forecast 2012World 4.8% 4.1%EU-27 1.6% 0.8%USA 2.1% 2.2%Asia (excl. Japan) 11.1% 8.0%Japan -3.1% 3.4%South America 4.7% 3.9% 12

Outlook BASF Group 2012 BASF Group aims to exceed the record levels of sales and EBIT before special items achieved in 2011. In H1 2012, BASF will most likely not achieve the exceptionally high results of the comparable period in 2011. However, we aim to outperform H2 2011. More specifically, we plan to increase sales and earnings in all our business segments with the exception of the segment Chemicals. In 2012, BASF will strive to earn again a high premium on cost of capital. 13

ChemicalsPrice increases could not compensate for lower volumesQ4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €)Intermediates Inorganics 600 2,302 2,441 537631 355-4% +9% 2,000 381 400 €3,122 +6% 200 1,000 Petrochemicals 2,136 0 0 +9% Q4 10 Q4 11 FY 10 FY 11Sales developmentPeriod Volumes Prices Portfolio CurrenciesQ4’11 vs. Q4’10  (8)%  7%  6%  1%  16%  2%  FY’11 vs. FY’10 (1)% (3)% 15

PlasticsWeaker demand led to receding marginsQ4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €)Polyurethanes 300 285 1,284 1,2031,395 1.200+2% 200 €2,573 800 110 +5% 100 400 Performance Polymers 0 0 1,178 Q4 10 Q4 11 FY 10 FY 11 +8%Sales developmentPeriod Volumes Prices Portfolio CurrenciesQ4’11 vs. Q4’10  (3)%  6%  1%  1%FY’11 vs. FY’10  4%  10% 0%  (2)% 16

Performance ProductsEarnings burdened by destocking and integration costsQ4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €) 294Care Chemicals 300 2,000 1,7271,180 Performance 1,554 Chemicals 220+55% 1,500 822 200Nutrition €3,629 +6% 1,000& Health442 +19% 100+15% 500Paper Chemicals Dispersions 0 0390 & Pigments Q4 10 Q4 11 FY 10 FY 11-4% 795 +9%Sales developmentPeriod Volumes Prices Portfolio CurrenciesQ4’11 vs. Q4’10  (6)%  6%  19% 0%   25%FY’11 vs. FY’10  (1)% 6%  (2)% 17

Functional SolutionsContinuous strong earnings improvementQ4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €)Catalysts Construction Chemicals 100 88 600 5591,595 536 467+17% +4% 80 400 €2,870 60 +12% 40 33 200 20 Coatings 739 0 0 +8% Q4 10 Q4 11 FY 10 FY 11Sales developmentPeriod Volumes Prices Portfolio Currencies   8%Q4’11 vs. Q4’10 6%  (1)%  (1)%FY’11 vs. FY’10  9%  10%  1%  (3)% 18

Agricultural SolutionsAnother record year for Crop ProtectionQ4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €)1,000 50 900 810 845 822 42 41 749 800 40 600 600 30 400 20 300 200 10 0 0 0 Q4 Q4 Q4 10 Q4 11 FY 10 FY 11 2010 2011Sales developmentPeriod Volumes Prices Portfolio Currencies  2%Q4’11 vs. Q4’10  (5)% 0% 0%FY’11 vs. FY’10  6% 0% 0%  (3)% 19

Oil & GasHigher oil prices improved sales and net incomeQ4’11 segment sales (million €) vs. Q4’10 EBIT before special items / Net income (million €) 2,430Exploration & 800 713 2,500 685 2,111Production1,017 2,000 600-4% €3,940 400 1,500 1,064 276 923 +33% 230 1,000 564 Natural Gas 200 500 Trading 2,923 0 0 +53% Q4 10 Q4 11 FY 10 FY 11 EBIT bSI Natural Gas Trading Net income EBIT bSI Exploration & ProductionSales developmentPeriod Volumes Prices/Currencies PortfolioQ4’11 vs. Q4’10  7%  25%  1%  23% FY’11 vs. FY’10 (11)% 0% 20

Review of “Other”Million € Q4 2011 Q4 2010 2011 2010Sales 1,112 1,590 6,275 5,851thereof Styrenics 714 2,393 2,848EBIT before special items (11) (139) (404) (648)thereof Corporate research (92) (96) (348) (323) Group corporate costs (74) (66) (246) (226) Currency results, hedges and other (107) (229) (199) (460) valuation effects Styrenics, fertilizers, other businesses 65 142 408 387Special items 623 149 582 (59)EBIT 612 10 178 (707) 21

Excellent operating cash flow in 2011Full Year 2011 (billion €) 9 8 7 (3.4) 6 7.1 0.5 5 (2.5) 4 3 (1.8) 2 (2.4) 1.2 1 1.5 2.0 0 Cash Operating Capex* Acquisitions Dividends Debt Other cash Cash 12/31/10 CF & Divestitures reduction inflows 12/31/11 * Payments related to intangible assets and property, plant and equipment 22

Balance sheet remains strongBalance sheet 2011 vs. 2010 (billion €) Highlights 2011  Reduction of long-term assets 61.2 61.2 by €0.4 billion, thereof 59.4 59.4 – €1.1 billion in other financial Stock- assets 22.7 25.4 holders’ – €0,5 billion increase of at Long-term Equity assets 34.5 34.1 equity investments  Addition of Financial 15.0 13.0 debt – €1.4 billion of inventories Inventories 8.7 10.1 – €0.7 billion of receivables Accounts receivable 10.2 10.9 22.8 Other  Equity ratio of 41.5% 21.7 liabilities Other assets 4.5 4.1  Net debt: €11.0 billion Liquid funds 1.5 2.0 Dec 31 Dec 31 Dec 31 Dec 31  Net debt EBITDA ratio: 0.9 2010 2011 2010 2011 23

BASF Crop ProtectionFinancial results FY 2011million € FY 2011 FY 2010 ∆% ∆% CERSales* 4,165 4,033 3% 6%EBITDA** 983 938 5% 11%EBITDA margin** 23.6% 23.3% - -EBIT** 810 749 8% 16%EBIT margin** 19.4% 18.6% - -Assets (as of Dec. 31) 5,350 5,063 6% 6%Research and development expenses 412 393 5% 6%* sales drivers 2011: volumes 6%, prices 0%, currencies -3%** before special itemsCER = at constant exchange rates Sales and earnings record despite currency headwinds. Q4 2011 prices +2% 25

BASF Crop Protection Sales by indication FY 2011Total sales 2011 to third parties Key factsin million €  Fungicides: Global volume gains supported by high demand in emergingFungicides Herbicides markets, Plant Health business.1,904 (+12%) 1,401 (+2%) Xemium launch started in EU  Herbicides: €4,165 Higher emerging markets (+6%) demand overcompensates lower sales in North America  Insecticides: Insecticides/Other Continued growth in most 860 (+1%) product lines (e.g. Seed Solutions®), portfolio optimizationIn brackets growth at constant exchange rates in % vs. prior year Sales growth particularly driven by fungicides 26

BASF Crop Protection Sales by region FY 2011Total sales 2011 to third parties Key factsin million €  Europe: Strong growth contribution from herbicides, Eastern EuropeNorth America Europe  North America:965 (+1%) 1,659 (+7%) High demand for Plant Health products. Herbicide business €4,165 affected by acreage reductions, (+6%) competition in imidazolinonesAsia Pacific487 (+12%)  South America, Africa, ME: Intense use of Fipronil-based South America, insecticides, AgCelence® thrived Africa, Middle East  Asia Pacific: 1,054 (+7%) Significantly increased demand for fungicides and herbicides inIn brackets growth at constant exchange rates in % vs. prior year emerging markets Regionally balanced business Global volume growth, especially in emerging markets 27

http://www.basf.com	2
http://twitter.com	1
http://ecm-qual-lb.rz-c007-j650.basf-ag.de	1
http://ecm-prod7.internal.basf-it-services.com	1
https://si0.twimg.com	1

BASF FY2011 results

by BASF

Accessibility

Categories

Upload Details

Usage Rights

5 Embeds 6

Statistics

BASF FY2011 results Presentation Transcript