BASF’s Coatings Division:                                          Focusing on growth and value Markus Kamieth President C...
Coatings – focusing on growth and valueBASF Group sales 2011                          Functional Solutions               P...
1 | BASF – a leading player in Coatings                  2 | Strategic focus on automotiveBASF Investor Day Automotive Sep...
Coatings – smart combination of differentfunctional layersExample: Automotive OEM Coating                                 ...
BASF’s Coatings Division:Focused on key industries                                                                    E-co...
BASF’s Coatings Division:Focused on attractive market segmentsCoatings demand (in € billion)                              ...
Balanced sales with a focus on growingmarkets and segmentsBy industry 2011                                                ...
Global presence bringscustomer proximityRegional automotive production development by 2015(in mio. units)                 ...
Global player in automotive OEM andrefinish coatings marketsOEM coatings market in 2011                                   ...
Coatings – a consistent cash generatorfor BASF GroupSales* (in € billion)                            EBITDA (indexed)BASF ...
Clear levers for profitable growth                           Consistently outperforming coatings market growth            ...
Significant investments in emergingmarkets             2012: New Laboratory India                    2014: New Basecoat pl...
1 | BASF – a leading player in Coatings                  2 | Strategic focus on automotive                              2a...
What makes BASF successful inAutomotive OEM coatings?                     Automotive OEMs             Key success factors ...
Process innovatorOur invention of the “Integrated process” is an industry trend                           Conventional coa...
BASF Coatings – driving sustainabilityProcess and product innovationsSignificant energy savings                           ...
Product innovatorWe are No.1 in topcoatsTopcoats (basecoat and clearcoat) are the most valuable layers on a car body      ...
Partnership with key OEM customersClose relationship from concept to market      IAA Frankfurt 2011: smart forvision      ...
Growth opportunitiesWe are well-positioned in BRIC, particularly in ChinaBRIC production forecast (Light vehicles in milli...
1 | BASF – a leading player in Coatings                  2 | Strategic focus on profitable growth                         ...
Premium A segment makes up 60% ofautomotive refinish marketMarket share of segments in                                  A ...
What makes BASF successful inRefinish coatings?              Automotive refinish coatings       Key success factors       ...
Process innovatorIntegrated process in refinish                                                              Key facts    ...
Product innovatorLeader in waterborne technology                                                                          ...
Premium brandsOne premium brand by country                    In the market since 1898          In the market since 1919  ...
Growth opportunitiesTargeting new markets with value-for-money brands                B brand sold in Mexico           Key ...
BASF’s Coatings Division targets 2015Operational targets     OEM:     – Remain No. 1 in topcoats and integrated process   ...
BASF’s Coatings Division targets 2015Financial targets     Grow sales to more than 3.6 billion euros by 2015     Steadily ...
BASF Investor Day Automotive September 5, 2012   Coatings                                                  29        29
Upcoming SlideShare
Loading in...5
×

BASF Coatings Division: Focusing on growth and value

2,667

Published on

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,667
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
143
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

BASF Coatings Division: Focusing on growth and value

  1. 1. BASF’s Coatings Division: Focusing on growth and value Markus Kamieth President Coatings Division September 05, 2012BASF Investor Day Automotive September 5, 2012 Coatings 1
  2. 2. Coatings – focusing on growth and valueBASF Group sales 2011 Functional Solutions Performance Products 15% 21% Coatings 4% Other 9% Agricultural Solutions 6% €73.5 Oil & Gas billion 16% Plastics Chemicals 15% 18%BASF Investor Day Automotive September 5, 2012 Coatings 2
  3. 3. 1 | BASF – a leading player in Coatings 2 | Strategic focus on automotiveBASF Investor Day Automotive September 5, 2012 Coatings Coatings 3
  4. 4. Coatings – smart combination of differentfunctional layersExample: Automotive OEM Coating Clearcoat Transparent protection Basecoat Color, metallic effect Primer Finish quality, stone chip resistance E-coat Corrosion protection Pre-treatment Body Steel, aluminumBASF Investor Day Automotive September 5, 2012 Coatings 4
  5. 5. BASF’s Coatings Division:Focused on key industries E-coat, primer, OEM coatings basecoat and clearcoat Sealer, primer, Refinish coatings basecoat and clearcoat Industrial coatings: Coil coatings for steel and aluminum, Coil and wind energy coatings for wind turbine rotor blades For interior and exterior use Decorative paints in buildingsBASF Investor Day Automotive September 5, 2012 Coatings 5
  6. 6. BASF’s Coatings Division:Focused on attractive market segmentsCoatings demand (in € billion) R CAG . .a 5% p ~20.4 ~17.0 R 6% CAG 8.7 OEM coatings 6.9 4% CAGR 7.7 Refinish coatings 6.6 4% CAGR 2.2 2.5 Industrial coatings* 1.3 4% CAGR 1.5 Decorative paints** BASF Coatings strategic relevant market* BASF is active in coil and wind segment of the industrial coatings market** BrazilData source: BASF internal dataBASF Investor Day Automotive September 5, 2012 Coatings 6
  7. 7. Balanced sales with a focus on growingmarkets and segmentsBy industry 2011 By region 2011Industrial OEMcoatings coatings Asia Europe8% 47% 17% 42% €2.8 €2.8 billion billion SouthDecorative Refinish America, NorthPaints coatings Africa & M.E. America23% 22% 28% 13% ~ 45% of sales in emerging marketsBASF Investor Day Automotive September 5, 2012 Coatings 7
  8. 8. Global presence bringscustomer proximityRegional automotive production development by 2015(in mio. units) Europe, Africa, Middle East North America 23 26 8 3 17 13 3 1 2011 2015 2011 2015 Asia Pacific 53 South America 37 3 3 4 6 1 4 2011 2015 BASF manufacturing sites in 2011 BASF R&D centers in 2011BASF Investor Day Automotive September 5, 2012 Coatings 8
  9. 9. Global player in automotive OEM andrefinish coatings marketsOEM coatings market in 2011 Refinish coatings market in 2011 BASF BASF 19% 10% PPG DuPont* Others €6.9 Others €6.6 billion billion DuPont* Nippon Paint Kansai Paint PPG BASF in OEM coatings BASF in refinish coatings Globally # 2 Globally # 3 China # 1 Focus on profitable premium segment Leader in topcoats and process solutions Pioneer in waterborne technology Supplier to all major OEMs Qualified by all major OEMsSource: BASF internal *DuPont announced divestment of its Performance Coatings business to Carlyle group on August 30, 2012BASF Investor Day Automotive September 5, 2012 Coatings 9
  10. 10. Coatings – a consistent cash generatorfor BASF GroupSales* (in € billion) EBITDA (indexed)BASF Investor Day Automotive September 5, 2012 Coatings 10
  11. 11. Clear levers for profitable growth Consistently outperforming coatings market growth Strengthen leading positions andLeverage operational Enhance and broaden expand in selected excellence innovation platform regions and segmentsBASF Investor Day Automotive September 5, 2012 Coatings 11
  12. 12. Significant investments in emergingmarkets 2012: New Laboratory India 2014: New Basecoat plant China 2012: New Technical Center Thailand 2012: New Laboratory Mexico >50% of investments until 2017 will be in Asia PacificBASF Investor Day Automotive September 5, 2012 Coatings 12
  13. 13. 1 | BASF – a leading player in Coatings 2 | Strategic focus on automotive 2a | OEM coatingsBASF Investor Day Automotive September 5, 2012 Coatings 13
  14. 14. What makes BASF successful inAutomotive OEM coatings? Automotive OEMs Key success factors Process innovator – BASF is the global leader in integrated processes Product innovator – Competence in all layers: BASF is the global leader in topcoats Globally #2 (basecoat and clearcoat) Automotive suppliers Partnership with customers – From design to assembly Globally #2BASF Investor Day Automotive September 5, 2012 Coatings 14
  15. 15. Process innovatorOur invention of the “Integrated process” is an industry trend Conventional coating-process Key facts Pioneer with Daimler (1997) Flash- Oven Oven Oven off BASF is the leader in integrated processes E-coat Primer Basecoat Clearcoat BASF targets >30% market share by 2015 2011: JV with Henkel to develop “Integrated process” leap-frog technology, combining pre-treatment and e-coat Flash- Customer benefits Oven Oven off Reduction of capital investment E-coat Innovative Clearcoat Energy savings BasecoatBASF Investor Day Automotive September 5, 2012 Coatings 15
  16. 16. BASF Coatings – driving sustainabilityProcess and product innovationsSignificant energy savings VOC* in kg/car (average) -17% 100% -66% -25 % 83% Thereof paint shop Total energyconsumption ofcar production 8.4 2.8 Conventional Integrated Conventional Waterbased coatings process process coatings process coatings process Integrated processes save up to 17% of the Waterbased coatings process total energy required for car production reduces VOC by 66%* VOC = Volatile Organic CompoundsBASF Investor Day Automotive September 5, 2012 Coatings 16
  17. 17. Product innovatorWe are No.1 in topcoatsTopcoats (basecoat and clearcoat) are the most valuable layers on a car body iGloss Avg. usage per car Benchmark in protection (by value) Clearcoat 20% XColors Innovative color trends Basecoat 43% Cathoguard 800/900 Primer 14% Environmentally friendly E-coat 23%BASF Investor Day Automotive September 5, 2012 Coatings 17
  18. 18. Partnership with key OEM customersClose relationship from concept to market IAA Frankfurt 2011: smart forvision 2010: Start-up partner for Hyundai Russia 2012: Tech Day SAIC R&D Center 2012: Zhengzhou Nissan R&D AwardBASF Investor Day Automotive September 5, 2012 Coatings 18
  19. 19. Growth opportunitiesWe are well-positioned in BRIC, particularly in ChinaBRIC production forecast (Light vehicles in million) Key facts Market leader in China and BRIC50 R Pioneer in China: since 1997; new C AG p.a. % 41 OEM coatings production planned in40 12 2014 0% China growth fueled by investment in +1 %30 1 26 +1 integrated processes – until 2015, >16 1% +1 new OEM plants will require this20 technology 29% of BASF OEM coatings sales10 came from BRIC countries in 2011 +14% Objective: grow our sales share from 0 BRIC countries to >35% until 2015 2011 2015 India China Russia BrazilData source: LMCABASF Investor Day Automotive September 5, 2012 Coatings 19
  20. 20. 1 | BASF – a leading player in Coatings 2 | Strategic focus on profitable growth 2b | Refinish coatingsBASF Investor Day Automotive September 5, 2012 Coatings 20
  21. 21. Premium A segment makes up 60% ofautomotive refinish marketMarket share of segments in A Car age < 5 years, OEM and insurer drivenrefinish coatings 2011 (in %) B Car age < 5-10 years, insurer and owner driven C Car age > 10 years, owner driven A segment B segment C segmentBASF Investor Day Automotive September 5, 2012 Coatings 21
  22. 22. What makes BASF successful inRefinish coatings? Automotive refinish coatings Key success factors Process innovation – leader in the integrated process Product innovation – leader in waterborne technology Premium brands and distribution network Globally #3BASF Investor Day Automotive September 5, 2012 Coatings 22
  23. 23. Process innovatorIntegrated process in refinish Key facts Market launch of direct-to-metal (DTM) sealer in 2011 Clearcoat Market potential for refinish integrated system until 2020 is €100 million Basecoat Clearcoat Customer benefit Sealer Basecoat Process time saving of up to 50% Up to 15% material consumption Primer DTM sealer savings Substrate Substrate Current process New BASF processBASF Investor Day Automotive September 5, 2012 Coatings 23
  24. 24. Product innovatorLeader in waterborne technology Key facts BASF Refinish Coatings is pioneer in waterborne technology Current roll-out of waterborne basecoat in North America Foster introduction in BRIC Countries In 2011 waterborne products accounted forRising share of BASF Refinish Coatings ~30% of BASF Refinish Coatings total saleswaterborne sales In 2015 we expect to achieve >35% of BASF Refinish Coatings sales from waterborne products Increasing regulations worldwide push demand for waterborne technologies BASF Refinish Coatings BASF Refinish Coatings total sales waterborne products salesBASF Investor Day Automotive September 5, 2012 Coatings 24
  25. 25. Premium brandsOne premium brand by country In the market since 1898 In the market since 1919 Premium brand primarily sold in: Premium brand primarily sold in: Australia, BRIC, Europe, South Africa North America, Europe, JapanBASF Investor Day Automotive September 5, 2012 Coatings 25
  26. 26. Growth opportunitiesTargeting new markets with value-for-money brands B brand sold in Mexico Key facts Value-for-money brand – Provides access to new markets for BASF Refinish Coatings – Strengthens our dealers’ market position and dealer network – Facilitates additional sales of BASF Refinish Coatings premium brands B brand sold in Australia, China, Market potential in selected countries is South Africa, Turkey ~€800 million Target: Value-for-money brands will account for >10% of BASF Refinish Coatings sales in 2015BASF Investor Day Automotive September 5, 2012 Coatings 26
  27. 27. BASF’s Coatings Division targets 2015Operational targets OEM: – Remain No. 1 in topcoats and integrated process – Grow sales share in BRIC countries by 20 percent Refinish: – Expand leading position in waterborne technologies – Grow in B-segment, with focus on AsiaBASF Investor Day Automotive September 5, 2012 Coatings 27
  28. 28. BASF’s Coatings Division targets 2015Financial targets Grow sales to more than 3.6 billion euros by 2015 Steadily increase operating profitability Continue to generate a premium on cost of capitalBASF Investor Day Automotive September 5, 2012 Coatings 28
  29. 29. BASF Investor Day Automotive September 5, 2012 Coatings 29 29
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×