BASF results 3Q2011
Upcoming SlideShare
Loading in...5
×
 

BASF results 3Q2011

on

  • 1,951 views

Charts accompanying the 3Q2011 Conference Call for investors and analysts on October 27, 2011

Charts accompanying the 3Q2011 Conference Call for investors and analysts on October 27, 2011
See also http://report.basf.com/2011/q3/en/servicepages/welcome.html

Statistics

Views

Total Views
1,951
Views on SlideShare
1,894
Embed Views
57

Actions

Likes
0
Downloads
24
Comments
0

6 Embeds 57

http://cms.faz.net 29
http://www.faz.net 14
http://wcms-vm04.rhs-building.basf-ag.de 9
http://ecm-qual-lb.rz-c007-j650.basf-ag.de 3
http://www.basf.com 1
http://localhost 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

BASF results 3Q2011 BASF results 3Q2011 Presentation Transcript

  • BASF with good earnings in Q3 Third Quarter 2011 Financial highlights October 27, 2011BASF 3rd Quarter 2011 Analyst Conference Call 1
  • 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.BASF 3rd Quarter 2011 Analyst Conference Call 2
  • BASF with good earnings in Q3Third quarter 2011 highlights Business performance Q3’11 vs. Q3’10 Sales €17.6 billion +12% EBITDA €2.7 billion (8%) EBITDA margin 15.4% 18.6% EBIT before special items (bSI) €2.0 billion (11%) EBIT bSI adjusted for non-comp. oil taxes €2.0 billion (1%) EBIT €1.9 billion (13%) Net income €1.2 billion (4%) EPS €1.30 (4%) Adjusted EPS €1.52 0% Further sales growth in chemical activities mainly due to successful price increases Acquired Cognis business continues to perform strongly; synergy targets increased Agricultural Solutions on track for record year in sales and earnings EBIT before special items amounted to €2 billion. Adjusted for Libya, which contributed €355 million in last year’s quarter, EBIT before special items increased by 6% compared to Q3 2010.BASF 3rd Quarter 2011 Analyst Conference Call 3
  • Major milestones in our active portfoliomanagement achieved Styrolution JV set on track Divestiture of fertilizer activities Styrolution, 50-50 joint venture between Agreement with EuroChem signed to BASF and INEOS, established on sell BASF‘s fertilizer assets in Antwerp October 1, 2011 BASF also plans to sell its 50%-stake in With pro-forma sales of €6.4 billion in PEC-Rhin JV to EuroChem 2010* Styrolution is global market leader Total transaction value ~€700 million in its industry Closing expected by the end of Q1 2012 BASF received ~€600 million in October as compensation for its contributed businessBASF 3rd Quarter 2011 Analyst Conference Call * unaudited 4
  • Important investments to spur furtherprofitable growth Nanjing expansion on track Acrylic acid complex in Brazil Joint investment of USD1.4 billion with World-scale acrylic acid and SAP* Sinopec for first expansion phase of production complex (Camaçari, Bahia) Nanjing Verbund site With more than €500 million BASF‘s Steam cracker expansion, butadiene largest investment in South America extraction, non-ionic surfactants plants Raw material and utilities supply secured are now on-stream via long-term contracts with Braskem Majority of remaining plants expected to Construction will begin in Q4; come on stream around end of 2011 start-up planned for 2014BASF 3rd Quarter 2011 Analyst Conference Call * Superabsorbent polymers 5
  • Innovations for the mobility of tomorrow smart forvision – joint concept car by Daimler and BASF Presented at the International Motor Show in Frankfurt in September 2011 BASF solutions are based on three main technology platforms: 1. Electrical energy efficiency - OPVs, OLEDs* support range extension 2. Multifunctional lightweight construction - Composite body parts, wheel rims and car seats 3. Integrated temperature management - Cool pigment coating, temperature reflecting foil * OPVs = Organic Photovoltaics, OLEDs = Organic Light Emitting Diodes Chemical solutions by BASF are playing a key role in bringing electromobility quicker to the roadsBASF 3rd Quarter 2011 Analyst Conference Call 6
  • Outlook 2011 confirmed Outlook 2011 We expect to generate significantly higher sales We aim to significantly exceed the 2010 EBIT before special items adjusted for non-compensable oil taxes (2010: €7.2 billion) We will earn a high premium on our cost of capital Medium-term targets We aim to grow sales on average by two percentage points per year faster than chemical production growth We strive to grow our earnings further year by year, and to achieve an EBITDA margin of 18% by 2012 Dividend policy We aim to continuously increase the annual dividend, or at least maintain it at the level of the previous year.BASF 3rd Quarter 2011 Analyst Conference Call 7
  • ChemicalsSignificant sales growth driven by strong price increasesQ3’11 segment sales (million €) vs. Q3’10 EBIT before special items (million €)Intermediates Inorganics 800 765671 356 674 617 621+4% +11% 537 600 €3,168 400 +10% 200 Petrochemicals 2,141 0 +12% Q3 Q4 Q1 Q2 Q3 2010 2011Sales development Period Volumes Prices Portfolio Currencies Q3’11 vs. Q3’10 (3)% 18% 0% (5)%BASF 3rd Quarter 2011 Analyst Conference Call 8
  • PlasticsSales up mainly due to a strong Performance Polymers businessQ3’11 segment sales (million €) vs. Q3’10 EBIT before special items (million €)Polyurethanes 400 371 393 3831,480 317+2% 285 €2,801 200 +8% Performance Polymers 0 1,321 +16% Q3 Q4 Q1 Q2 Q3 2010 2011Sales development Period Volumes Prices Portfolio Currencies Q3’11 vs. Q3’10 2% 10% 0% (4)%BASF 3rd Quarter 2011 Analyst Conference Call 9
  • Performance ProductsStrong contributions from acquired Cognis businessesQ3’11 segment sales (million €) vs. Q3’10 EBIT before special items (million €)Care Chemicals Performance 600 554 5131,265 Chemicals 500 440+85% 904 400 370 +9%Nutrition €3,991 300 294& Health +24% 200471+32% Dispersions 100 Paper Chemicals & Pigments 0 423 928 Q3 Q4 Q1 Q2 Q3 -6% +5% 2010 2011Sales development Period Volumes Prices Portfolio Currencies Q3’11 vs. Q3’10 (2%) 7% 23% (4)%BASF 3rd Quarter 2011 Analyst Conference Call 10
  • Cognis integration –Synergy target increased to €290 millionTarget Acquisition EPS accretive as of 2012Integration Costs €300 million one-time costs until end of 2013 − thereof €200 million incurred by the end of Q3 2011 €120 million inventory step-up fully incurred already − €60 million each incurred in Q4 2010 and Q1 2011Synergies €290 million of additional annual EBIT targeted − €145 million cost synergies by the end of 2013 − €145 million growth synergies by the end of 2015BASF 3rd Quarter 2011 Analyst Conference Call 11
  • Functional SolutionsStrong performance of CatalystsQ3’11 segment sales (million €) vs. Q3’10 EBIT before special items (million €)Catalysts Construction 158 167 1621,608 Chemicals 150 142+19% 599 0% €2,907 100 +12% 50 33 Coatings 700 0 +9% Q3 Q4 Q1 Q2 Q3 2010 2011Sales development Period Volumes Prices Portfolio Currencies Q3’11 vs. Q3’10 4% 11% 3% (6)%BASF 3rd Quarter 2011 Analyst Conference Call 12
  • Agricultural SolutionsOn track for record year in sales and earningsQ3’11 segment sales (million €) vs. Q3’10 EBIT before special items (million €)1.000 908 150 832 +9 % 800 95 100 600 +44% 66 400 50 200 0 0 Q3 Q3 Q3 Q3 2010 2011 2010 2011Sales development Period Volumes Prices Portfolio Currencies Q3’11 vs. Q3’10 12% 3% 0% (6)%BASF 3rd Quarter 2011 Analyst Conference Call 13
  • Oil & GasEBIT before SI on last year’s level (adjusted for non-compensable oil taxes)Q3’11 segment sales (million €) vs. Q3’10 EBIT before special items/ Net income (million €)Exploration &Production 573 600534 Non-compensable-39% oil taxes 224 €2,195 400 350 -1% 503 227 200 Natural Gas 272 225 Trading 123 70 1,661 0 +23% Q3 Q3 2010 2011 EBIT bSI Exploration & Production Net income EBIT bSI Natural Gas TradingSales development Period Volumes Prices/Currencies Portfolio Q3’11 vs. Q3’10 (25)% 24% 0%BASF 3rd Quarter 2011 Analyst Conference Call 14
  • Review of “Other” Million € Q3 2011 Q3 2010 Sales 1,637 1,452 thereof Styrenics* 739 683 EBIT before special items (21) 58 thereof Corporate research (86) (67) Group corporate costs (58) (54) Currency results, hedges and other 104 104 valuation effects Styrenics, fertilizers, other businesses 82 77 Special items (33) (68) EBIT (54) (10) * Since January 1, 2011, Styrenics only includes the carved-out Styrenics businesses; the previous year’s values were adjusted accordingly.BASF 3rd Quarter 2011 Analyst Conference Call 15
  • Operating cash flow remains strong Jan - Sep Jan - Sep Million € 2011 2010 Cash provided by operating activities 5,028 5,307 thereof Changes in net working capital (1,337) (783) Cash used in investing activities (957) (1,175) thereof Payments related to tangible / intangible assets (2,101) (1,518) Cash used in financing activities (4,105) (3,814) thereof Changes in financial liabilities (1,727) (2,003) Dividends (2,378) (1,811) Third quarter 2011 Operating cash flow strong at €2.0 billion Free cash flow again high at €1.2 billion Net debt further reduced by ~€650 million to €11.6 billion since end of Q2 2011BASF 3rd Quarter 2011 Analyst Conference Call 16
  • BASF 3rd Quarter 2011 Analyst Conference Call 17
  • Macro-economic assumptions 2011 Previous forecast New forecastGDP 3%-4% 2.5%-3%Chemical production 5%-6% 4.5%-5%(excl. Pharma)Industrial production 5%-6% 4.5%-5%US$ / Euro 1.40 1.40Oil price (US$ / bbl) 110 110BASF 3rd Quarter 2011 Analyst Conference Call
  • Financial highlights Million € Q3 2011 Q3 2010 Δ% Q2 2011 Δ% Sales 17,607 15,781 +12% 18,461 (5)% changes due to - volumes (3)% - prices +14% - portfolio +5% - currencies (4)% EBITDA 2,709 2,934 (8)% 3,015 (10)% EBIT before special items 1,964 2,213 (11)% 2,237 (12)% EBIT before special items 1,964 1,989 (1)% 2,237 (12)% adjusted for non-compensable oil taxes Special items (82) (58) - (20) - EBIT 1,882 2,155 (13)% 2,217 (15)% Net income 1,192 1,245 (4)% 1,454 (18)% EPS (€) 1.30 1.35 (4)% 1.59 (18)% Adjusted EPS (€) 1.52 1.52 0% 1.75 (13)%BASF 3rd Quarter 2011 Analyst Conference Call 19
  • Cognis integrationGenerating €290 million of growth and cost synergies Synergies (million €) Growth synergies Providing joint customer base with access to broader portfolio 350 Increasing solution capabilities 300 Extending innovation capabilities 250 Leveraging regional set-up 145 200 Cost synergies 150 Realizing procurement cost 100 savings 145 Consolidating of administrative 50 structures 0 Improving production efficiency Consolidating IT landscape Cost synergies (by the end of 2013) Growth synergies (by the end of 2015)BASF 3rd Quarter 2011 Analyst Conference Call