SlideShare a Scribd company logo
1 of 28
Download to read offline
BASF 1st Quarter 2011 Analyst Conference Call
May 6, 2011, 8:30 a.m. (CEST), Mannheim



                                                     Powerful start to 2011
                                                     BASF remains on growth track


                                                     First Quarter 2011
                                                     Financial highlights
                                                     May 6, 2011




     BASF 1st Quarter 2011 Analyst Conference Call                                  1




Analyst Conference Call Script
Dr. Kurt Bock
Dr. Hans-Ulrich Engel

The spoken word applies.
Page 2
BASF 1st Quarter 2011 Analyst Conference                                                May 06, 2011




    Powerful start to 2011
    First quarter highlights


      Business performance                            Q1’11               vs. Q1’10

         Sales                                      €19.4 billion          +25%
         EBITDA                                     €3.4 billion           +28%
         EBITDA margin                              17.4%                  17.0%
         EBIT before special items                  €2.7 billion           +40%
         EBIT                                       €2.6 billion           +39%
         Net income                                 €2.4 billion          +134%
         EPS                                        €2.62                 +134%
         Adjusted EPS                               €1.94                  +47%

         Excellent sales and earnings growth in the chemical activities
         Cognis contributed significantly to the good results in Performance Products
         Agricultural Solutions started with strong sales and earnings
         Higher sales and earnings in Oil & Gas despite lower volumes from Libya
    BASF 1st Quarter 2011 Analyst Conference Call                                              3
Page 3
BASF 1st Quarter 2011 Analyst Conference                    May 06, 2011



Dr. Kurt Bock
Ladies and Gentlemen, good morning and thank you for joining us.


[Chart 3: Powerful start to 2011]
  Global economic growth continued in the first quarter. BASF had
  a powerful start to the year driven by ongoing strong demand and
  our ability to protect margins by passing on higher raw material
  costs. There was no significant impact on our business from the
  severe earthquake in Japan as well as the tense political situation
  in North Africa.

  In Q1 2011, we increased sales by 25 percent to 19.4 billion
  Euros compared with the first quarter of 2010. Volumes rose by 5
  percent. Excluding Oil & Gas, volumes were up by 9 percent. We
  were able to raise prices by 13 percent. Cognis contributed 6
  percentage points to sales growth.

  We reached an EBITDA of 3.4 billion Euros, up 28 percent,
  resulting in an EBITDA margin of 17.4 percent. Earnings before
  special items came in at 2.7 billion Euros, an increase of 40
  percent compared to the first quarter of 2010. Special items of
  182 million Euros included in EBIT were mainly related to Cognis
  integration costs.

  The financial result included a capital gain of 887 million Euros
  from the sale of our stake in K+S. This gain was booked as a
  special item. We generated net income of 2.4 billion Euros, lifting
  earnings per share to 2.62 Euros. Adjusted earnings per share
  came in at 1.94 Euros mainly due to the one-time gain from the
  sale of our K+S stake.
Page 4
BASF 1st Quarter 2011 Analyst Conference                                                                     May 06, 2011




 Important milestones in Q1 2011

    MDI project in Chongqing                     Gas for Europe Strategy              Fertilizer activities




      Project approved                           Two Memoranda of                 10.3% stake in K+S sold
      Construction already started               Understanding signed              – Capital gain before taxes
                                                 with Gazprom                        €887 million
      Completion in 2014
                                                  – Development of two            Plan to sell major part of the
      World-scale capacity of                       additional sites of Achimov
      400,000 metric tons                                                         fertilizer assets:
                                                    deposits in Russia
      Total investment                                                             – Sales: Mid three-digit million
                                                  – Acquisition of 15% stake in
      ~€860 million                                 South Stream                   – Capacity: 2.5 million tons



 BASF 1st Quarter 2011 Analyst Conference Call                                                                        4
Page 5
BASF 1st Quarter 2011 Analyst Conference                      May 06, 2011



[Chart 4: Important milestones in Q1 2011]

In the first quarter we achieved important milestones:

  In March, our planned MDI facility in Chongqing was approved by
  the Chinese authorities. We have already started construction
  and we expect the facility to be operational in 2014. It will be
  100% BASF owned with an investment of about 860 million
  Euros. MDI is a precursor for polyurethanes and we expect
  polyurethanes to grow faster than Chinese GDP over the coming
  years.

  To support our growth in China and the emerging markets, we are
  currently looking into further investment opportunities. With
  Sinopec and Petronas, we signed Memoranda of Understanding
  to explore further expansions of our joint Verbund sites in Nanjing
  and Malaysia respectively. In Brazil, we are evaluating new
  investments for acrylic acid, butyl acrylate and superabsorbent
  polymers.

  We also signed two Memoranda of Understanding in order to
  further strengthen our successful partnership with Gazprom. We
  will expand our gas production by jointly developing additional
  areas of the Achimov deposits of the Urengoy fields in Western
  Siberia. Furthermore, we intend to acquire a 15% stake in South
  Stream, which will support the growth of our gas trading business
  in South-East Europe.

  In March, we announced plans to sell major parts of our fertilizer
  activities, which no longer fit with BASF’s future strategic direction
  and we also sold our 10.3% stake in K+S.

With this I will hand over to Hans.
Page 6
BASF 1st Quarter 2011 Analyst Conference                                                                            May 06, 2011




 Chemicals
 Record earnings


 Q1’11 segment sales (million €) vs. Q1’10                            EBIT before special items (million €)

 Intermediates                                         Inorganics      800                                    765
 709                                                          353                   687
                                                                                                 617
 +22%                                                       +25%                                       537
                                                                       600
                                                                             461
                               €3,276                                  400
                               +27%
                                                                       200
                                                   Petrochemicals
                                                            2,214        0
                                                            +28%             Q1      Q2          Q3    Q4      Q1
                                                                                          2010                2011



 Sales development
  Period                                         Volumes            Prices          Portfolio           Currencies
  Q1’11 vs. Q1’10                                    4%               21%             0%                     2%



 BASF 1st Quarter 2011 Analyst Conference Call                                                                        5
Page 7
BASF 1st Quarter 2011 Analyst Conference                     May 06, 2011



Dr. Hans-Ulrich Engel

Good morning ladies and gentlemen.
I will highlight the financial performance of the segments in more
detail and focus on the business development in comparison to the
first quarter of 2010.


[Chart 5: Chemicals – Record earnings]

In the Chemicals segment, we increased sales substantially due to
ongoing high demand and price increases, which we implemented
to offset high raw material costs. EBIT before special items reached
a record level.

  In Petrochemicals, many of our product markets were still tight,
  due to strong demand as well as planned and unplanned
  outages. We realized higher cracker margins in all regions.
  Acrylics supply remained very tight, resulting in significantly
  improved earnings.

  In Inorganics and Intermediates, higher margins for ammonia
  and tight markets for butanediol and several amines supported
  our sales and earnings increase.
Page 8
BASF 1st Quarter 2011 Analyst Conference                                                                            May 06, 2011




 Plastics
 Strong volumes and prices lifted sales and earnings


 Q1’11 segment sales (million €) vs. Q1’10                            EBIT before special items (million €)

 Polyurethanes                                                         400                       371          393
                                                                                    349
 1,479
 +21%                                                                        279                       285

                               €2,788                                  200
                               +27%
                                                     Performance
                                                        Polymers
                                                                         0
                                                            1,309
                                                            +34%             Q1      Q2          Q3    Q4      Q1
                                                                                          2010                2011



 Sales development
  Period                                         Volumes            Prices          Portfolio           Currencies
  Q1’11 vs. Q1’10                                   14%                11%            0%                      2%



 BASF 1st Quarter 2011 Analyst Conference Call                                                                        6
Page 9
BASF 1st Quarter 2011 Analyst Conference                     May 06, 2011



[Chart 6: Plastics – Strong volumes and prices lifted sales and
earnings]

In Plastics, we experienced strong demand in all product lines and
achieved record earnings.

  In Performance Polymers, strong volume and positive pricing
  momentum, especially for caprolactam, drove sales growth. The
  Engineering Plastics business benefitted from high demand from
  the automotive industry. After the start up of the Ecoflex plant in
  Ludwigshafen, sales of biodegradable plastics developed very
  well. As a result, EBIT before special items was up significantly.

  In Polyurethanes, higher demand especially from the automotive
  and construction industries resulted in increased sales and EBIT
  before special items. However, we have not yet been able to fully
  pass on higher feedstock costs in our sales prices.
Page 10
BASF 1st Quarter 2011 Analyst Conference                                                                             May 06, 2011




 Performance Products
 Acquisitions are paying off


 Q1’11 segment sales (million €) vs. Q1’10                             EBIT before special items (million €)

 Care Chemicals                                       Performance       600                                    554
 1,376                                                  Chemicals       500          471
 +117%                                                         895            419
                                                                        400                       370
                                                             +23%
 Nutrition                     €3,982                                   300
                                                                                                        294
 & Health
 469                           +39%                                     200
 +27%                                                                   100
                                                       Dispersions
  Paper Chemicals                                      & Pigments         0
  393                                                          849            Q1      Q2          Q3    Q4      Q1
  - 6%                                                       +17%                          2010                2011



 Sales development
  Period                                         Volumes             Prices          Portfolio           Currencies
  Q1’11 vs. Q1’10                                    3%                 5%                 29%                 2%



 BASF 1st Quarter 2011 Analyst Conference Call                                                                         7




[Chart 7: Performance Products – Acquisitions are paying off]

All divisions in the Performance Products segment, except Paper
Chemicals, posted a rise in sales thanks to higher volumes and
increased prices. Cognis contributed 29 percentage points to sales
growth. EBIT before special items surpassed the earnings level of
Q1 2010 by far, due to higher volumes and the excellent
performance of the Cognis businesses. In addition, we realized cost
synergies related to the Ciba acquisition and successfully
repositioned the combined businesses.

    In Dispersions & Pigments, sales increased significantly in all
    product lines. Demand for our pigments remained strong,
    particularly in Europe and Asia. EBIT before special items was
    clearly higher.
Page 11
BASF 1st Quarter 2011 Analyst Conference                    May 06, 2011



  In Care Chemicals, sales doubled mainly due to the integration
  of Cognis. Moreover, we experienced strong demand for our
  hygiene products as well as for detergents and formulators. EBIT
  before special items improved sharply.

  Sales in Nutrition & Health increased substantially in part due to
  Cognis. We faced some price pressure, especially for vitamin E.
  However, EBIT before special items matched last year’s high
  level.

  In Paper Chemicals, despite the challenging business
  environment we were able to increase prices. However, volumes
  were lower mainly due to our optimized product portfolio. EBIT
  before special items came in higher as the consistent
  implementation of our restructuring program is paying off.

  In Performance Chemicals, sales and EBIT before special items
  increased substantially thanks to strong demand, particularly from
  the automotive and refinery industries as well as the inclusion of
  Cognis.
Page 12
BASF 1st Quarter 2011 Analyst Conference                                 May 06, 2011




 Cognis – integration objectives

 Targets
    Achieve 20% EBITDA margin
    in the Performance Products segment by 2012
       Acquisition accretive as of 2012

 Costs
    One-time integration costs of €290 million
    until end of 2013
       Inventory step-up of €120 million
       Costs already incurred:
       − 2010: €80 million (thereof €60 million inventory step-up)
       − Q1/2011: €158 million (thereof €60 million inventory step-up)

 Synergies
    Generate €275 million of additional EBIT
       − €135 million growth synergies by the end of 2015
       − €140 million cost synergies by the end of 2013
 BASF 1st Quarter 2011 Analyst Conference Call                             8
Page 13
BASF 1st Quarter 2011 Analyst Conference                      May 06, 2011



[Chart 8: Cognis – integration objectives]

Now, I would like to give you a short update on the integration of
Cognis, which is running at full speed.

As you know, we have set ourselves ambitious targets:

  We want to achieve a 20 percent EBITDA margin in the
  Performance Products segment and

  Make the Cognis acquisition accretive as of 2012.

We expect one-time integration costs of 290 million Euros until the
end of 2013. An additional 120 million Euros have been incurred
from inventory step-ups. Of these costs, 80 million Euros were
already booked in 2010 and 158 million Euros in the first quarter of
2011.

On the other hand, we aim to generate 275 million Euros of
additional EBIT annually through growth and cost synergies. 135
million Euros will come from growth synergies by the end of 2015.
We will benefit from leveraging the joint customer base as well as
extended solution and innovation capabilities.

We aim to realize 140 million Euros of cost synergies per year by
the end of 2013. These are related to savings in procurement
activities, the consolidation of administrative structures and the IT
landscape as well as the improvement of production efficiency.
Page 14
BASF 1st Quarter 2011 Analyst Conference                                                                             May 06, 2011




 Functional Solutions
 Strong automotive demand drove sales and earnings


 Q1’11 segment sales (million €) vs. Q1’10                              EBIT before special items (million €)

 Catalysts                                          Construction                      165          158
 1,677                                                Chemicals          150                                    142
 +58%                                                        469               111
                                                            +9%
                               €2,818                                    100

                               +35%
                                                                          50                             33
                                                           Coatings
                                                                672        0
                                                              +13%             Q1      Q2          Q3    Q4      Q1
                                                                                            2010                2011



 Sales development
  Period                                         Volumes              Prices          Portfolio          Currencies
  Q1’11 vs. Q1’10                                   18%                 13%                 1%                  3%



 BASF 1st Quarter 2011 Analyst Conference Call                                                                         9
Page 15
BASF 1st Quarter 2011 Analyst Conference                     May 06, 2011



[Chart 9: Functional Solutions – Strong automotive demand
drove sales and earnings]

Volumes in the Functional Solutions segment were significantly
higher, reflecting the global recovery of the automotive industry.
Demand from the construction industry rose slightly, primarily owing
to the robust building activity in emerging markets. EBIT before
special items improved substantially.

  Catalysts’ sales rose sharply, mainly attributable to higher
  volumes in mobile emissions and chemical catalysts as well as
  higher precious metal prices. As a result, our EBIT before special
  items came in far above the level of the previous year.

  Sales in Construction Chemicals grew slightly. We experienced
  a positive business development in Eastern Europe, Asia and
  South America, but North America remained challenging. Due to
  higher raw material and fixed costs, EBIT before special items did
  not match the previous year’s level.

  In Coatings, the positive trend in demand continued for all
  product lines. However, raw material prices could not yet be fully
  passed on. As a result, EBIT before special items was only up
  slightly.
Page 16
BASF 1st Quarter 2011 Analyst Conference                                                               May 06, 2011




 Agricultural Solutions
 Strong sales and earnings growth


 Q1’11 segment sales (million €) vs. Q1’10                    EBIT before special items (million €)
 1,400                                             1,230       400
                                          +7%                                         +7 %    343
 1,200                   1,145                                            321
 1,000                                                         300
  800
  600                                                          200

  400
                                                               100
  200
      0                                                          0
                          Q1                        Q1                     Q1                 Q1
                          2010                      2011                  2010               2011



 Sales development
  Period                                         Volumes    Prices          Portfolio        Currencies
  Q1’11 vs. Q1’10                                    8%       (2)%               0%                   1%



 BASF 1st Quarter 2011 Analyst Conference Call                                                             10
Page 17
BASF 1st Quarter 2011 Analyst Conference                     May 06, 2011



[Chart 10: Agricultural Solutions – Strong sales and earnings
growth]

Agricultural Solutions started the new season successfully. Positive
market conditions with higher soft commodity prices and the
improved liquidity situation of farmers contributed favorably to sales
and earnings performance.

We achieved sales growth across all regions and indications. Our
fungicide business in Europe and North America performed
particularly well. The development of Kixor, our recently launched
herbicide, is well on track.

Despite strong overall demand, there was price pressure on some
herbicides in the North American market. Nevertheless, we have
seen stable prices since last quarter.
Page 18
BASF 1st Quarter 2011 Analyst Conference                                                                                May 06, 2011




 Oil & Gas
 Higher oil and gas prices compensated for lower volumes


 Q1’11 segment sales (million €) vs. Q1’10                        EBIT before special items / Net income (million €)

 Exploration &                                                    800                                    744
 Production                                                                  629                         118
 1,068                                                            600
 +4%                                                                         145
                               €3,455                             400
                                +7%                                                                      626
                                                 Natural Gas      200        484
                                                                                          273                         306
                                                     Trading
                                                       2,387        0
                                                        +9%                         Q1                         Q1
                                                                                   2010                        2011
                                                                     EBIT bSI Natural Gas Trading              Net income
                                                                     EBIT bSI Exploration & Production
 Sales development
  Period                                                       Volumes        Prices/Currencies                Portfolio
  Q1’11 vs. Q1’10                                               (13)%                 20%                         0%



 BASF 1st Quarter 2011 Analyst Conference Call                                                                              11
Page 19
BASF 1st Quarter 2011 Analyst Conference                    May 06, 2011



[Chart 11: Oil & Gas – Higher oil and gas prices compensated
for lower volumes]

Sales in Oil & Gas increased slightly, mainly due to higher oil and
gas prices. EBIT before special items improved significantly.

  Sales in Exploration & Production increased slightly. Higher oil
  prices, with Brent averaging 105 US Dollars per barrel compared
  with 76 US Dollars in Q1 2010 compensated for lower oil
  production in Libya. End of February, we suspended our oil
  production in Libya. Nevertheless, earnings increased
  substantially, driven by the higher oil prices.

  Since the winter in Europe was less severe compared to the first
  quarter 2010, volumes in Natural Gas Trading decreased.
  However, gas sales were up as a result of higher sales prices.
  Earnings, on the other hand, decreased significantly as a result of
  lower demand and negative time-lag effects.

A look at the income statement shows, that net income after taxes
and minority interests rose by 12 percent to 306 million Euros. Non-
compensable oil production taxes amounted to 280 million Euros.
Page 20
BASF 1st Quarter 2011 Analyst Conference                                 May 06, 2011




 Review of “Other”

  Million €                                          Q1 2011   Q1 2010
  Sales                                                1,812     1,338
  thereof Styrenics                                      843       666
  EBIT before special items                            (209)     (266)
  thereof Corporate research                            (83)      (82)
          Group corporate costs                         (55)      (51)
          Currency results, hedges and other            (78)     (136)
          valuation effects
          Styrenics, fertilizers, other businesses      185       101
  Special items                                         (35)      (34)
  EBIT                                                 (244)     (300)




 BASF 1st Quarter 2011 Analyst Conference Call                               12
Page 21
BASF 1st Quarter 2011 Analyst Conference                      May 06, 2011



[Chart 12: Review of “Other”]

In “Other”, I would only like to highlight the positive business
development of Styrenics, which benefitted from ongoing strong
demand and higher prices. EBIT before special items in “Other”
improved by 57 million Euros.



Now I would like to hand back to Kurt.
Page 22
BASF 1st Quarter 2011 Analyst Conference                                                     May 06, 2011




 Excellent operating cash flow in Q1 2011

  Million €                                                         Q1 2011       Q1 2010
  Cash provided by operating activities                                2,255         1,368
  thereof Changes in net working capital                                 260         (680)
  Cash provided by investing activities                                  257         (454)
  thereof Payments related to tangible / intangible assets              (547)        (392)
  Cash used in financing activities                                   (1,200)        (757)
  thereof Changes in financial liabilities                            (1,073)        (679)
          Dividends                                                     (127)         (78)




   First quarter 2011
    Despite improved business activities net working capital decreased slightly
      Free cash flow at €1.7 billion
      Net debt reduced by €2.4 billion to €11.1 billion since December 31, 2010
      €972 million proceeds from the sale of K+S stake

 BASF 1st Quarter 2011 Analyst Conference Call                                                  13
Page 23
BASF 1st Quarter 2011 Analyst Conference                     May 06, 2011



Dr. Kurt Bock

[Chart 13: Excellent operating cash flow in Q1 2011]

Thank you, Hans. Let me now briefly talk about our cash flow before
we conclude with the outlook.

Thanks to our strong business performance in the first quarter, we
generated an excellent operating cash flow of 2.3 billion Euros, up
900 million Euros compared with Q1 2010. Despite improved
business activities, cash tied up in net working capital decreased
slightly by 260 million Euros. This continues to demonstrate BASF’s
outstanding cash generating capability.

Cash from investing activities was positive and amounted to
257 million Euros; this included 972 million Euros of proceeds from
the K+S disposal. Capex came in at 547 million Euros. As a result,
we turned in a very strong free cash flow of 1.7 billion Euros in the
first quarter. From the beginning of 2011, we were able to reduce
net debt by 2.4 billion Euros to 11.1 billion.
Page 24
BASF 1st Quarter 2011 Analyst Conference                                                    May 06, 2011




 Outlook 2011

  Assumptions
       We are increasing our Brent oil price forecast from $90/bbl to $100/bbl
       We are assuming that oil production in Libya will not restart during 2011
        → EBIT before special items from our Libyan oil production for the full year 2011
          will be about €1 billion lower compared with 2010
          (thereof about €700 million of non-compensable oil taxes)
  Targets 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 expect to achieve 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
 BASF 1st Quarter 2011 Analyst Conference Call                                                14
Page 25
BASF 1st Quarter 2011 Analyst Conference                                               May 06, 2011



[Chart 14: Outlook 2011]

Now let’s come to the outlook for 2011. What do we expect?

  We are increasing our Brent oil price forecast from 90 Dollars per
  barrel to 100 Dollars per barrel.

  We are assuming that the oil production in Libya will not restart
  during 2011. Based on this assumption, EBIT before special
  items from our Libyan oil production for the full year 2011 will be
  about 1 billion Euros lower compared with 2010. However, as you
  all know, of these 1 billion Euros about 700 million are non-
  compensable oil taxes.

For the full year 2011, we still expect to generate significantly higher
sales. Considering the suspension of oil production in Libya, EBIT
before special items excluding non-compensable oil taxes provides
a much more meaningful guidance for 2011. Thus, we aim to
significantly exceed the 2010 EBIT before special items excluding
non-compensable oil taxes which amounted to 7.2 billion Euros.

Finally, we are committed to our target to achieve a high premium
on our cost of capital in 2011.



Thank you for your attention. We are now happy to take your
questions.




                     BASF 4Q/FY’2010 Conference | February 24th, 2011             40
Page 26
BASF 1st Quarter 2011 Analyst Conference                                                                                           May 06, 2011




 Back-Up




 BASF 1st Quarter 2011 Analyst Conference Call                                                                                16




 BASF Group Q1 2011

 Sales (billion €)                                                          EBIT before special items (billion €)

 20                                                        19.4
                                                                            3.0                                        2.7
                          16.2            15.8    16.4
           15.5                                                             2.5              2.2          2.2
 16
                                                                                       2.0
                                                                            2.0                                 1.8
 12
                                                                            1.5
   8
                                                                            1.0
   4                                                                        0.5
   0                                                                        0.0
            Q1              Q2             Q3     Q4        Q1                         Q1    Q2           Q3    Q4      Q1
                                  2010                      2011                                   2010                2011



 Sales development
  Period                                         Volumes                Prices               Portfolio           Currencies
  Q1’11 vs. Q1’10                                    5%*                    13%                    6%                 1%


                                                   * Volumes +9% (without Oil & Gas)
 BASF 1st Quarter 2011 Analyst Conference Call                                                                                17
Page 27
BASF 1st Quarter 2011 Analyst Conference                                                                                        May 06, 2011




 Financial highlights
 Strong earnings improvement in Q1

  Million €                                             Q1 2011            Q1 2010            Δ%      Q4 2010            Δ%
  Sales                                                   19,361               15,454       +25%        16,424         +18%
    changes due to
    - volumes                                                                                +5%
    - prices                                                                                +13%
    - portfolio                                                                               6%
    - currencies                                                                             +1%
  EBITDA                                                   3,365                2,627       +28%         2,703         +25%

  EBIT before special items                                2,732                1,954       +40%         1,765         +55%

  Special items                                                (182)             (114)           .         (78)            .

  EBIT                                                     2,550                1,840       +39%         1,687         +51%

  Net income                                               2,411                1,029      +134%         1,100         +119%

  EPS (€)                                                      2,62               1,12     +134%          1,20         +118%

  Adjusted EPS (€)                                             1,94               1,32      +47%          1,39         +40%



 BASF 1st Quarter 2011 Analyst Conference Call                                                                             18




 Balance sheet further strengthened

 Balance sheet March 31, 2011 vs. end of 2010 (billion €)
                                                                                           Proceeds from the sale of
                             60.2                       60.2
                                                                                           BASF’s stake in K+S were
                                             59.4                  59.4
                                                                                           used to reduce debt
                                                                            Stock-         Net debt decreased by €2.4
                                                        23.5           22.7 holders’
        Long-term                                                                          billion to €11.1 billion.
                                                                            Equity
           assets            32.7
                                                                                           Accounts receivable increased
                                             34.5                                          by €0.9 billion due to the
                                                        13.9                Financial
                                                                       15.0 debt           expansion of our business
      Inventories             8.7                8.7                                       Equity ratio at 39% (up 1
      Accounts                                          22.8                               percentage point)
     receivable              11.1            10.2                  21.7      Other
                                                                             liabilities
   Other assets             4.9                  4.5
   Liquid funds             2.8                  1.5
                          Mar 31          Dec 31       Mar 31      Dec 31
                           2011            2010         2011        2010



 BASF 1st Quarter 2011 Analyst Conference Call                                                                             19
Page 28
BASF 1st Quarter 2011 Analyst Conference                                                                           May 06, 2011




 Cognis integration
 Generating €275 million of growth and cost synergies


  Synergies (million €)                                               Growth synergies
                                                                           Providing joint customer base
                                                                           with access to broader portfolio
    300
                                                                           Increasing solution capabilities
    250                                                                    Extending innovation capabilities
                                                                           Leveraging regional set-up
    200                                135

    150                                                               Cost synergies
                                                                           Realizing procurement cost
    100                                                                    savings
                                       140                                 Consolidating of administrative
      50
                                                                           structures
        0                                                                  Improving production efficiency
                                                                           Consolidating IT landscape
                           Growth synergies (by the end 2015)
                           Cost synergies (by the end of 2013)

 BASF 1st Quarter 2011 Analyst Conference Call                                                                20

More Related Content

What's hot

BASF capital market story 10/2012
BASF capital market story 10/2012BASF capital market story 10/2012
BASF capital market story 10/2012BASF
 
BASF Capital Market Story 05/2012
BASF Capital Market Story  05/2012BASF Capital Market Story  05/2012
BASF Capital Market Story 05/2012BASF
 
HeidelbergCement: Q1 2016 Presentation
HeidelbergCement: Q1 2016 PresentationHeidelbergCement: Q1 2016 Presentation
HeidelbergCement: Q1 2016 PresentationHeidelbergCement
 
BASF FY2010 speech
BASF FY2010 speechBASF FY2010 speech
BASF FY2010 speechBASF
 
Brazil petroleum and natural gas market outlook to 2016 executive summary
Brazil petroleum and natural gas market outlook to 2016 executive summaryBrazil petroleum and natural gas market outlook to 2016 executive summary
Brazil petroleum and natural gas market outlook to 2016 executive summaryAMMindpower
 
Leonardo 2Q/1H2021 Results Presentation
Leonardo 2Q/1H2021 Results PresentationLeonardo 2Q/1H2021 Results Presentation
Leonardo 2Q/1H2021 Results PresentationLeonardo
 
Financial statements andreview, 4thquarter 2010
Financial statements andreview, 4thquarter 2010Financial statements andreview, 4thquarter 2010
Financial statements andreview, 4thquarter 2010Statoilasa
 
CONSOL Energy 1Q14 Operations and Financial Update
CONSOL Energy 1Q14 Operations and Financial UpdateCONSOL Energy 1Q14 Operations and Financial Update
CONSOL Energy 1Q14 Operations and Financial UpdateMarcellus Drilling News
 
BASF - A sustainable investment
BASF - A sustainable investmentBASF - A sustainable investment
BASF - A sustainable investmentBASF
 
About BASF Care Chemicals
About BASF Care ChemicalsAbout BASF Care Chemicals
About BASF Care ChemicalsBASF
 
Speech & charts of BASF Q1 2012
Speech & charts of BASF  Q1 2012Speech & charts of BASF  Q1 2012
Speech & charts of BASF Q1 2012BASF
 
Press release Y2017
Press release Y2017Press release Y2017
Press release Y2017Hera Group
 

What's hot (15)

BASF capital market story 10/2012
BASF capital market story 10/2012BASF capital market story 10/2012
BASF capital market story 10/2012
 
BASF Capital Market Story 05/2012
BASF Capital Market Story  05/2012BASF Capital Market Story  05/2012
BASF Capital Market Story 05/2012
 
HeidelbergCement: Q1 2016 Presentation
HeidelbergCement: Q1 2016 PresentationHeidelbergCement: Q1 2016 Presentation
HeidelbergCement: Q1 2016 Presentation
 
BASF FY2010 speech
BASF FY2010 speechBASF FY2010 speech
BASF FY2010 speech
 
Brazil petroleum and natural gas market outlook to 2016 executive summary
Brazil petroleum and natural gas market outlook to 2016 executive summaryBrazil petroleum and natural gas market outlook to 2016 executive summary
Brazil petroleum and natural gas market outlook to 2016 executive summary
 
Sqm corp pres baml
Sqm corp pres bamlSqm corp pres baml
Sqm corp pres baml
 
Sqm corp pres baml
Sqm corp pres bamlSqm corp pres baml
Sqm corp pres baml
 
Leonardo 2Q/1H2021 Results Presentation
Leonardo 2Q/1H2021 Results PresentationLeonardo 2Q/1H2021 Results Presentation
Leonardo 2Q/1H2021 Results Presentation
 
Financial statements andreview, 4thquarter 2010
Financial statements andreview, 4thquarter 2010Financial statements andreview, 4thquarter 2010
Financial statements andreview, 4thquarter 2010
 
CONSOL Energy 1Q14 Operations and Financial Update
CONSOL Energy 1Q14 Operations and Financial UpdateCONSOL Energy 1Q14 Operations and Financial Update
CONSOL Energy 1Q14 Operations and Financial Update
 
BASF - A sustainable investment
BASF - A sustainable investmentBASF - A sustainable investment
BASF - A sustainable investment
 
About BASF Care Chemicals
About BASF Care ChemicalsAbout BASF Care Chemicals
About BASF Care Chemicals
 
Speech & charts of BASF Q1 2012
Speech & charts of BASF  Q1 2012Speech & charts of BASF  Q1 2012
Speech & charts of BASF Q1 2012
 
Press release Y2017
Press release Y2017Press release Y2017
Press release Y2017
 
Sqm corp pres apr_btg final
Sqm corp pres apr_btg finalSqm corp pres apr_btg final
Sqm corp pres apr_btg final
 

Similar to BASF Q1 2011 Earnings Surge on Strong Demand

BASF Analyst Conference Q2 2011
BASF Analyst Conference Q2 2011BASF Analyst Conference Q2 2011
BASF Analyst Conference Q2 2011BASF
 
Speech BASF Analyst Conference Call Q2 2011
Speech BASF Analyst Conference Call Q2 2011Speech BASF Analyst Conference Call Q2 2011
Speech BASF Analyst Conference Call Q2 2011BASF
 
BASF Analyst Conference Q1 2012
BASF Analyst Conference Q1 2012BASF Analyst Conference Q1 2012
BASF Analyst Conference Q1 2012BASF
 
Slides BASF Analyst Conference Q3 2012
Slides BASF Analyst Conference Q3 2012Slides BASF Analyst Conference Q3 2012
Slides BASF Analyst Conference Q3 2012BASF
 
Speech Analyst Conference Q4 FY2017
Speech Analyst Conference Q4 FY2017Speech Analyst Conference Q4 FY2017
Speech Analyst Conference Q4 FY2017BASF
 
BASF analyst conference call Q1 2018 charts
BASF analyst conference call Q1 2018 chartsBASF analyst conference call Q1 2018 charts
BASF analyst conference call Q1 2018 chartsBASF
 
BASF FY2010 results
BASF FY2010 resultsBASF FY2010 results
BASF FY2010 resultsBASF
 
BASF analyst conference call Q1 2018 charts and speech
BASF analyst conference call Q1 2018 charts and speechBASF analyst conference call Q1 2018 charts and speech
BASF analyst conference call Q1 2018 charts and speechBASF
 
BASF slides analyst conference - Full Year 2021
BASF slides analyst conference - Full Year 2021BASF slides analyst conference - Full Year 2021
BASF slides analyst conference - Full Year 2021BASF
 
Charts BASF Analyst Conference Q2 2012
Charts BASF Analyst Conference Q2 2012Charts BASF Analyst Conference Q2 2012
Charts BASF Analyst Conference Q2 2012BASF
 
Slides analyst conference Full Year 2018
Slides analyst conference Full Year 2018Slides analyst conference Full Year 2018
Slides analyst conference Full Year 2018BASF
 
Presentation analyst conference Q3 2021
Presentation analyst conference Q3 2021Presentation analyst conference Q3 2021
Presentation analyst conference Q3 2021BASF
 
Nobia Q3 2011 Interim Presentation
Nobia Q3 2011 Interim PresentationNobia Q3 2011 Interim Presentation
Nobia Q3 2011 Interim PresentationNobia Group
 
Speech BASF analyst conference call Q2 2016 long
Speech BASF analyst conference call Q2 2016 longSpeech BASF analyst conference call Q2 2016 long
Speech BASF analyst conference call Q2 2016 longBASF
 
Speech BASF analyst conference Q2 2021
Speech BASF analyst conference Q2 2021Speech BASF analyst conference Q2 2021
Speech BASF analyst conference Q2 2021BASF
 
Charts + Speech Q1 2015 Analyst Call
Charts + Speech Q1 2015 Analyst CallCharts + Speech Q1 2015 Analyst Call
Charts + Speech Q1 2015 Analyst CallBASF
 
Slides BASF analyst conference Q2 2021
Slides BASF analyst conference Q2 2021Slides BASF analyst conference Q2 2021
Slides BASF analyst conference Q2 2021BASF
 
BASF charts analyst conference Q3 2018
BASF charts analyst conference Q3 2018BASF charts analyst conference Q3 2018
BASF charts analyst conference Q3 2018BASF
 
BASF capital market story October 2018
BASF capital market story October 2018BASF capital market story October 2018
BASF capital market story October 2018BASF
 
BASF Roundtable Agro Solutions
BASF Roundtable Agro SolutionsBASF Roundtable Agro Solutions
BASF Roundtable Agro SolutionsBASF
 

Similar to BASF Q1 2011 Earnings Surge on Strong Demand (20)

BASF Analyst Conference Q2 2011
BASF Analyst Conference Q2 2011BASF Analyst Conference Q2 2011
BASF Analyst Conference Q2 2011
 
Speech BASF Analyst Conference Call Q2 2011
Speech BASF Analyst Conference Call Q2 2011Speech BASF Analyst Conference Call Q2 2011
Speech BASF Analyst Conference Call Q2 2011
 
BASF Analyst Conference Q1 2012
BASF Analyst Conference Q1 2012BASF Analyst Conference Q1 2012
BASF Analyst Conference Q1 2012
 
Slides BASF Analyst Conference Q3 2012
Slides BASF Analyst Conference Q3 2012Slides BASF Analyst Conference Q3 2012
Slides BASF Analyst Conference Q3 2012
 
Speech Analyst Conference Q4 FY2017
Speech Analyst Conference Q4 FY2017Speech Analyst Conference Q4 FY2017
Speech Analyst Conference Q4 FY2017
 
BASF analyst conference call Q1 2018 charts
BASF analyst conference call Q1 2018 chartsBASF analyst conference call Q1 2018 charts
BASF analyst conference call Q1 2018 charts
 
BASF FY2010 results
BASF FY2010 resultsBASF FY2010 results
BASF FY2010 results
 
BASF analyst conference call Q1 2018 charts and speech
BASF analyst conference call Q1 2018 charts and speechBASF analyst conference call Q1 2018 charts and speech
BASF analyst conference call Q1 2018 charts and speech
 
BASF slides analyst conference - Full Year 2021
BASF slides analyst conference - Full Year 2021BASF slides analyst conference - Full Year 2021
BASF slides analyst conference - Full Year 2021
 
Charts BASF Analyst Conference Q2 2012
Charts BASF Analyst Conference Q2 2012Charts BASF Analyst Conference Q2 2012
Charts BASF Analyst Conference Q2 2012
 
Slides analyst conference Full Year 2018
Slides analyst conference Full Year 2018Slides analyst conference Full Year 2018
Slides analyst conference Full Year 2018
 
Presentation analyst conference Q3 2021
Presentation analyst conference Q3 2021Presentation analyst conference Q3 2021
Presentation analyst conference Q3 2021
 
Nobia Q3 2011 Interim Presentation
Nobia Q3 2011 Interim PresentationNobia Q3 2011 Interim Presentation
Nobia Q3 2011 Interim Presentation
 
Speech BASF analyst conference call Q2 2016 long
Speech BASF analyst conference call Q2 2016 longSpeech BASF analyst conference call Q2 2016 long
Speech BASF analyst conference call Q2 2016 long
 
Speech BASF analyst conference Q2 2021
Speech BASF analyst conference Q2 2021Speech BASF analyst conference Q2 2021
Speech BASF analyst conference Q2 2021
 
Charts + Speech Q1 2015 Analyst Call
Charts + Speech Q1 2015 Analyst CallCharts + Speech Q1 2015 Analyst Call
Charts + Speech Q1 2015 Analyst Call
 
Slides BASF analyst conference Q2 2021
Slides BASF analyst conference Q2 2021Slides BASF analyst conference Q2 2021
Slides BASF analyst conference Q2 2021
 
BASF charts analyst conference Q3 2018
BASF charts analyst conference Q3 2018BASF charts analyst conference Q3 2018
BASF charts analyst conference Q3 2018
 
BASF capital market story October 2018
BASF capital market story October 2018BASF capital market story October 2018
BASF capital market story October 2018
 
BASF Roundtable Agro Solutions
BASF Roundtable Agro SolutionsBASF Roundtable Agro Solutions
BASF Roundtable Agro Solutions
 

More from BASF

Presentation BASF Analyst Conference FY2023
Presentation BASF Analyst Conference FY2023Presentation BASF Analyst Conference FY2023
Presentation BASF Analyst Conference FY2023BASF
 
BASF Analyst Conference Q3
BASF Analyst Conference Q3BASF Analyst Conference Q3
BASF Analyst Conference Q3BASF
 
Presentation Analyst Conference BASF Q2 2023.pdf
Presentation Analyst Conference BASF Q2 2023.pdfPresentation Analyst Conference BASF Q2 2023.pdf
Presentation Analyst Conference BASF Q2 2023.pdfBASF
 
Presentation AnalystConference Q1-2023
Presentation AnalystConference Q1-2023Presentation AnalystConference Q1-2023
Presentation AnalystConference Q1-2023BASF
 
Presentation BASF IR Conference FY 2022
Presentation BASF IR Conference FY 2022Presentation BASF IR Conference FY 2022
Presentation BASF IR Conference FY 2022BASF
 
Presentation Analyst Conference Q3 2022.pdf
Presentation Analyst Conference Q3 2022.pdfPresentation Analyst Conference Q3 2022.pdf
Presentation Analyst Conference Q3 2022.pdfBASF
 
Slides Analyst Conference Q2 2022
Slides Analyst Conference Q2 2022Slides Analyst Conference Q2 2022
Slides Analyst Conference Q2 2022BASF
 
Teilnahmebedingungen_Datenschutzhinweise_Gewinnspiel GSAÜ 2022_Facebook_Insta...
Teilnahmebedingungen_Datenschutzhinweise_Gewinnspiel GSAÜ 2022_Facebook_Insta...Teilnahmebedingungen_Datenschutzhinweise_Gewinnspiel GSAÜ 2022_Facebook_Insta...
Teilnahmebedingungen_Datenschutzhinweise_Gewinnspiel GSAÜ 2022_Facebook_Insta...BASF
 
Slides BASF Analyst Conference Q1 2022
Slides BASF Analyst Conference Q1 2022Slides BASF Analyst Conference Q1 2022
Slides BASF Analyst Conference Q1 2022BASF
 
Teilnahmebedingungen und Datenschutzhinweise_Gewinnspiel Instagram - Stand202...
Teilnahmebedingungen und Datenschutzhinweise_Gewinnspiel Instagram - Stand202...Teilnahmebedingungen und Datenschutzhinweise_Gewinnspiel Instagram - Stand202...
Teilnahmebedingungen und Datenschutzhinweise_Gewinnspiel Instagram - Stand202...BASF
 
BASF Investor Update 2022 Keynote
BASF Investor Update 2022 KeynoteBASF Investor Update 2022 Keynote
BASF Investor Update 2022 KeynoteBASF
 
Speech analyst conference Q3 2021
Speech analyst conference Q3 2021Speech analyst conference Q3 2021
Speech analyst conference Q3 2021BASF
 
BASF’s new Verbund site in Zhanjiang
BASF’s new Verbund site in ZhanjiangBASF’s new Verbund site in Zhanjiang
BASF’s new Verbund site in ZhanjiangBASF
 
BASF Battery Materials
BASF Battery MaterialsBASF Battery Materials
BASF Battery MaterialsBASF
 
LinkedIn Global: Conditions of participation and data protection
LinkedIn Global: Conditions of participation and data protectionLinkedIn Global: Conditions of participation and data protection
LinkedIn Global: Conditions of participation and data protectionBASF
 
Twitter Global: Conditions of participation and data protection
Twitter Global: Conditions of participation and data protectionTwitter Global: Conditions of participation and data protection
Twitter Global: Conditions of participation and data protectionBASF
 
Facebook Global: Conditions of participation and data protection
Facebook Global: Conditions of participation and data protectionFacebook Global: Conditions of participation and data protection
Facebook Global: Conditions of participation and data protectionBASF
 
Slides analyst conference call Q1 2021
Slides analyst conference call Q1 2021Slides analyst conference call Q1 2021
Slides analyst conference call Q1 2021BASF
 
Speech analyst conference Q1 2021
Speech analyst conference Q1 2021Speech analyst conference Q1 2021
Speech analyst conference Q1 2021BASF
 
Ethernet-APL in the Field for high-availability Safety Applications
Ethernet-APL in the Field for high-availability Safety ApplicationsEthernet-APL in the Field for high-availability Safety Applications
Ethernet-APL in the Field for high-availability Safety ApplicationsBASF
 

More from BASF (20)

Presentation BASF Analyst Conference FY2023
Presentation BASF Analyst Conference FY2023Presentation BASF Analyst Conference FY2023
Presentation BASF Analyst Conference FY2023
 
BASF Analyst Conference Q3
BASF Analyst Conference Q3BASF Analyst Conference Q3
BASF Analyst Conference Q3
 
Presentation Analyst Conference BASF Q2 2023.pdf
Presentation Analyst Conference BASF Q2 2023.pdfPresentation Analyst Conference BASF Q2 2023.pdf
Presentation Analyst Conference BASF Q2 2023.pdf
 
Presentation AnalystConference Q1-2023
Presentation AnalystConference Q1-2023Presentation AnalystConference Q1-2023
Presentation AnalystConference Q1-2023
 
Presentation BASF IR Conference FY 2022
Presentation BASF IR Conference FY 2022Presentation BASF IR Conference FY 2022
Presentation BASF IR Conference FY 2022
 
Presentation Analyst Conference Q3 2022.pdf
Presentation Analyst Conference Q3 2022.pdfPresentation Analyst Conference Q3 2022.pdf
Presentation Analyst Conference Q3 2022.pdf
 
Slides Analyst Conference Q2 2022
Slides Analyst Conference Q2 2022Slides Analyst Conference Q2 2022
Slides Analyst Conference Q2 2022
 
Teilnahmebedingungen_Datenschutzhinweise_Gewinnspiel GSAÜ 2022_Facebook_Insta...
Teilnahmebedingungen_Datenschutzhinweise_Gewinnspiel GSAÜ 2022_Facebook_Insta...Teilnahmebedingungen_Datenschutzhinweise_Gewinnspiel GSAÜ 2022_Facebook_Insta...
Teilnahmebedingungen_Datenschutzhinweise_Gewinnspiel GSAÜ 2022_Facebook_Insta...
 
Slides BASF Analyst Conference Q1 2022
Slides BASF Analyst Conference Q1 2022Slides BASF Analyst Conference Q1 2022
Slides BASF Analyst Conference Q1 2022
 
Teilnahmebedingungen und Datenschutzhinweise_Gewinnspiel Instagram - Stand202...
Teilnahmebedingungen und Datenschutzhinweise_Gewinnspiel Instagram - Stand202...Teilnahmebedingungen und Datenschutzhinweise_Gewinnspiel Instagram - Stand202...
Teilnahmebedingungen und Datenschutzhinweise_Gewinnspiel Instagram - Stand202...
 
BASF Investor Update 2022 Keynote
BASF Investor Update 2022 KeynoteBASF Investor Update 2022 Keynote
BASF Investor Update 2022 Keynote
 
Speech analyst conference Q3 2021
Speech analyst conference Q3 2021Speech analyst conference Q3 2021
Speech analyst conference Q3 2021
 
BASF’s new Verbund site in Zhanjiang
BASF’s new Verbund site in ZhanjiangBASF’s new Verbund site in Zhanjiang
BASF’s new Verbund site in Zhanjiang
 
BASF Battery Materials
BASF Battery MaterialsBASF Battery Materials
BASF Battery Materials
 
LinkedIn Global: Conditions of participation and data protection
LinkedIn Global: Conditions of participation and data protectionLinkedIn Global: Conditions of participation and data protection
LinkedIn Global: Conditions of participation and data protection
 
Twitter Global: Conditions of participation and data protection
Twitter Global: Conditions of participation and data protectionTwitter Global: Conditions of participation and data protection
Twitter Global: Conditions of participation and data protection
 
Facebook Global: Conditions of participation and data protection
Facebook Global: Conditions of participation and data protectionFacebook Global: Conditions of participation and data protection
Facebook Global: Conditions of participation and data protection
 
Slides analyst conference call Q1 2021
Slides analyst conference call Q1 2021Slides analyst conference call Q1 2021
Slides analyst conference call Q1 2021
 
Speech analyst conference Q1 2021
Speech analyst conference Q1 2021Speech analyst conference Q1 2021
Speech analyst conference Q1 2021
 
Ethernet-APL in the Field for high-availability Safety Applications
Ethernet-APL in the Field for high-availability Safety ApplicationsEthernet-APL in the Field for high-availability Safety Applications
Ethernet-APL in the Field for high-availability Safety Applications
 

Recently uploaded

TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptx
TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptxTACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptx
TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptxKathlynVillar
 
Demographic transition and the rise of wealth inequality
Demographic transition and the rise of wealth inequalityDemographic transition and the rise of wealth inequality
Demographic transition and the rise of wealth inequalityGRAPE
 
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...Amil baba
 
Building pressure? Rising rents, and what to expect in the future
Building pressure? Rising rents, and what to expect in the futureBuilding pressure? Rising rents, and what to expect in the future
Building pressure? Rising rents, and what to expect in the futureResolutionFoundation
 
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshare
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshareAon-UK-DC-Pension-Tracker-Q1-2024. slideshare
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshareHenry Tapper
 
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτος
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτοςΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτος
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτοςNewsroom8
 
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptx
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptxOAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptx
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptxhiddenlevers
 
2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptxHenry Tapper
 
ekthesi-trapeza-tis-ellados-gia-2023.pdf
ekthesi-trapeza-tis-ellados-gia-2023.pdfekthesi-trapeza-tis-ellados-gia-2023.pdf
ekthesi-trapeza-tis-ellados-gia-2023.pdfSteliosTheodorou4
 
Banking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxBanking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxANTHONYAKINYOSOYE1
 
What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024prajwalgopocket
 
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024Money Forward
 
Global Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride ConsultingGlobal Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride Consultingswastiknandyofficial
 
10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdf10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdfglobusfinanza
 
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxIntroduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxDrRkurinjiMalarkurin
 
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdf
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdfZimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdf
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdfFREELANCER
 
Thoma Bravo Equity - Presentation Pension Fund
Thoma Bravo Equity - Presentation Pension FundThoma Bravo Equity - Presentation Pension Fund
Thoma Bravo Equity - Presentation Pension FundAshwinJey
 
Hello this ppt is about seminar final project
Hello this ppt is about seminar final projectHello this ppt is about seminar final project
Hello this ppt is about seminar final projectninnasirsi
 
2B Nation-State.pptx contemporary world nation
2B  Nation-State.pptx contemporary world nation2B  Nation-State.pptx contemporary world nation
2B Nation-State.pptx contemporary world nationko9240888
 

Recently uploaded (19)

TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptx
TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptxTACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptx
TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptx
 
Demographic transition and the rise of wealth inequality
Demographic transition and the rise of wealth inequalityDemographic transition and the rise of wealth inequality
Demographic transition and the rise of wealth inequality
 
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...
 
Building pressure? Rising rents, and what to expect in the future
Building pressure? Rising rents, and what to expect in the futureBuilding pressure? Rising rents, and what to expect in the future
Building pressure? Rising rents, and what to expect in the future
 
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshare
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshareAon-UK-DC-Pension-Tracker-Q1-2024. slideshare
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshare
 
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτος
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτοςΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτος
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτος
 
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptx
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptxOAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptx
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptx
 
2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx
 
ekthesi-trapeza-tis-ellados-gia-2023.pdf
ekthesi-trapeza-tis-ellados-gia-2023.pdfekthesi-trapeza-tis-ellados-gia-2023.pdf
ekthesi-trapeza-tis-ellados-gia-2023.pdf
 
Banking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxBanking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptx
 
What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024
 
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
 
Global Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride ConsultingGlobal Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride Consulting
 
10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdf10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdf
 
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxIntroduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
 
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdf
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdfZimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdf
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdf
 
Thoma Bravo Equity - Presentation Pension Fund
Thoma Bravo Equity - Presentation Pension FundThoma Bravo Equity - Presentation Pension Fund
Thoma Bravo Equity - Presentation Pension Fund
 
Hello this ppt is about seminar final project
Hello this ppt is about seminar final projectHello this ppt is about seminar final project
Hello this ppt is about seminar final project
 
2B Nation-State.pptx contemporary world nation
2B  Nation-State.pptx contemporary world nation2B  Nation-State.pptx contemporary world nation
2B Nation-State.pptx contemporary world nation
 

BASF Q1 2011 Earnings Surge on Strong Demand

  • 1. BASF 1st Quarter 2011 Analyst Conference Call May 6, 2011, 8:30 a.m. (CEST), Mannheim Powerful start to 2011 BASF remains on growth track First Quarter 2011 Financial highlights May 6, 2011 BASF 1st Quarter 2011 Analyst Conference Call 1 Analyst Conference Call Script Dr. Kurt Bock Dr. Hans-Ulrich Engel The spoken word applies.
  • 2. Page 2 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Powerful start to 2011 First quarter highlights Business performance Q1’11 vs. Q1’10 Sales €19.4 billion +25% EBITDA €3.4 billion +28% EBITDA margin 17.4% 17.0% EBIT before special items €2.7 billion +40% EBIT €2.6 billion +39% Net income €2.4 billion +134% EPS €2.62 +134% Adjusted EPS €1.94 +47% Excellent sales and earnings growth in the chemical activities Cognis contributed significantly to the good results in Performance Products Agricultural Solutions started with strong sales and earnings Higher sales and earnings in Oil & Gas despite lower volumes from Libya BASF 1st Quarter 2011 Analyst Conference Call 3
  • 3. Page 3 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Dr. Kurt Bock Ladies and Gentlemen, good morning and thank you for joining us. [Chart 3: Powerful start to 2011] Global economic growth continued in the first quarter. BASF had a powerful start to the year driven by ongoing strong demand and our ability to protect margins by passing on higher raw material costs. There was no significant impact on our business from the severe earthquake in Japan as well as the tense political situation in North Africa. In Q1 2011, we increased sales by 25 percent to 19.4 billion Euros compared with the first quarter of 2010. Volumes rose by 5 percent. Excluding Oil & Gas, volumes were up by 9 percent. We were able to raise prices by 13 percent. Cognis contributed 6 percentage points to sales growth. We reached an EBITDA of 3.4 billion Euros, up 28 percent, resulting in an EBITDA margin of 17.4 percent. Earnings before special items came in at 2.7 billion Euros, an increase of 40 percent compared to the first quarter of 2010. Special items of 182 million Euros included in EBIT were mainly related to Cognis integration costs. The financial result included a capital gain of 887 million Euros from the sale of our stake in K+S. This gain was booked as a special item. We generated net income of 2.4 billion Euros, lifting earnings per share to 2.62 Euros. Adjusted earnings per share came in at 1.94 Euros mainly due to the one-time gain from the sale of our K+S stake.
  • 4. Page 4 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Important milestones in Q1 2011 MDI project in Chongqing Gas for Europe Strategy Fertilizer activities Project approved Two Memoranda of 10.3% stake in K+S sold Construction already started Understanding signed – Capital gain before taxes with Gazprom €887 million Completion in 2014 – Development of two Plan to sell major part of the World-scale capacity of additional sites of Achimov 400,000 metric tons fertilizer assets: deposits in Russia Total investment – Sales: Mid three-digit million – Acquisition of 15% stake in ~€860 million South Stream – Capacity: 2.5 million tons BASF 1st Quarter 2011 Analyst Conference Call 4
  • 5. Page 5 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 [Chart 4: Important milestones in Q1 2011] In the first quarter we achieved important milestones: In March, our planned MDI facility in Chongqing was approved by the Chinese authorities. We have already started construction and we expect the facility to be operational in 2014. It will be 100% BASF owned with an investment of about 860 million Euros. MDI is a precursor for polyurethanes and we expect polyurethanes to grow faster than Chinese GDP over the coming years. To support our growth in China and the emerging markets, we are currently looking into further investment opportunities. With Sinopec and Petronas, we signed Memoranda of Understanding to explore further expansions of our joint Verbund sites in Nanjing and Malaysia respectively. In Brazil, we are evaluating new investments for acrylic acid, butyl acrylate and superabsorbent polymers. We also signed two Memoranda of Understanding in order to further strengthen our successful partnership with Gazprom. We will expand our gas production by jointly developing additional areas of the Achimov deposits of the Urengoy fields in Western Siberia. Furthermore, we intend to acquire a 15% stake in South Stream, which will support the growth of our gas trading business in South-East Europe. In March, we announced plans to sell major parts of our fertilizer activities, which no longer fit with BASF’s future strategic direction and we also sold our 10.3% stake in K+S. With this I will hand over to Hans.
  • 6. Page 6 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Chemicals Record earnings Q1’11 segment sales (million €) vs. Q1’10 EBIT before special items (million €) Intermediates Inorganics 800 765 709 353 687 617 +22% +25% 537 600 461 €3,276 400 +27% 200 Petrochemicals 2,214 0 +28% Q1 Q2 Q3 Q4 Q1 2010 2011 Sales development Period Volumes Prices Portfolio Currencies Q1’11 vs. Q1’10 4% 21% 0% 2% BASF 1st Quarter 2011 Analyst Conference Call 5
  • 7. Page 7 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Dr. Hans-Ulrich Engel Good morning ladies and gentlemen. I will highlight the financial performance of the segments in more detail and focus on the business development in comparison to the first quarter of 2010. [Chart 5: Chemicals – Record earnings] In the Chemicals segment, we increased sales substantially due to ongoing high demand and price increases, which we implemented to offset high raw material costs. EBIT before special items reached a record level. In Petrochemicals, many of our product markets were still tight, due to strong demand as well as planned and unplanned outages. We realized higher cracker margins in all regions. Acrylics supply remained very tight, resulting in significantly improved earnings. In Inorganics and Intermediates, higher margins for ammonia and tight markets for butanediol and several amines supported our sales and earnings increase.
  • 8. Page 8 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Plastics Strong volumes and prices lifted sales and earnings Q1’11 segment sales (million €) vs. Q1’10 EBIT before special items (million €) Polyurethanes 400 371 393 349 1,479 +21% 279 285 €2,788 200 +27% Performance Polymers 0 1,309 +34% Q1 Q2 Q3 Q4 Q1 2010 2011 Sales development Period Volumes Prices Portfolio Currencies Q1’11 vs. Q1’10 14% 11% 0% 2% BASF 1st Quarter 2011 Analyst Conference Call 6
  • 9. Page 9 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 [Chart 6: Plastics – Strong volumes and prices lifted sales and earnings] In Plastics, we experienced strong demand in all product lines and achieved record earnings. In Performance Polymers, strong volume and positive pricing momentum, especially for caprolactam, drove sales growth. The Engineering Plastics business benefitted from high demand from the automotive industry. After the start up of the Ecoflex plant in Ludwigshafen, sales of biodegradable plastics developed very well. As a result, EBIT before special items was up significantly. In Polyurethanes, higher demand especially from the automotive and construction industries resulted in increased sales and EBIT before special items. However, we have not yet been able to fully pass on higher feedstock costs in our sales prices.
  • 10. Page 10 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Performance Products Acquisitions are paying off Q1’11 segment sales (million €) vs. Q1’10 EBIT before special items (million €) Care Chemicals Performance 600 554 1,376 Chemicals 500 471 +117% 895 419 400 370 +23% Nutrition €3,982 300 294 & Health 469 +39% 200 +27% 100 Dispersions Paper Chemicals & Pigments 0 393 849 Q1 Q2 Q3 Q4 Q1 - 6% +17% 2010 2011 Sales development Period Volumes Prices Portfolio Currencies Q1’11 vs. Q1’10 3% 5% 29% 2% BASF 1st Quarter 2011 Analyst Conference Call 7 [Chart 7: Performance Products – Acquisitions are paying off] All divisions in the Performance Products segment, except Paper Chemicals, posted a rise in sales thanks to higher volumes and increased prices. Cognis contributed 29 percentage points to sales growth. EBIT before special items surpassed the earnings level of Q1 2010 by far, due to higher volumes and the excellent performance of the Cognis businesses. In addition, we realized cost synergies related to the Ciba acquisition and successfully repositioned the combined businesses. In Dispersions & Pigments, sales increased significantly in all product lines. Demand for our pigments remained strong, particularly in Europe and Asia. EBIT before special items was clearly higher.
  • 11. Page 11 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 In Care Chemicals, sales doubled mainly due to the integration of Cognis. Moreover, we experienced strong demand for our hygiene products as well as for detergents and formulators. EBIT before special items improved sharply. Sales in Nutrition & Health increased substantially in part due to Cognis. We faced some price pressure, especially for vitamin E. However, EBIT before special items matched last year’s high level. In Paper Chemicals, despite the challenging business environment we were able to increase prices. However, volumes were lower mainly due to our optimized product portfolio. EBIT before special items came in higher as the consistent implementation of our restructuring program is paying off. In Performance Chemicals, sales and EBIT before special items increased substantially thanks to strong demand, particularly from the automotive and refinery industries as well as the inclusion of Cognis.
  • 12. Page 12 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Cognis – integration objectives Targets Achieve 20% EBITDA margin in the Performance Products segment by 2012 Acquisition accretive as of 2012 Costs One-time integration costs of €290 million until end of 2013 Inventory step-up of €120 million Costs already incurred: − 2010: €80 million (thereof €60 million inventory step-up) − Q1/2011: €158 million (thereof €60 million inventory step-up) Synergies Generate €275 million of additional EBIT − €135 million growth synergies by the end of 2015 − €140 million cost synergies by the end of 2013 BASF 1st Quarter 2011 Analyst Conference Call 8
  • 13. Page 13 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 [Chart 8: Cognis – integration objectives] Now, I would like to give you a short update on the integration of Cognis, which is running at full speed. As you know, we have set ourselves ambitious targets: We want to achieve a 20 percent EBITDA margin in the Performance Products segment and Make the Cognis acquisition accretive as of 2012. We expect one-time integration costs of 290 million Euros until the end of 2013. An additional 120 million Euros have been incurred from inventory step-ups. Of these costs, 80 million Euros were already booked in 2010 and 158 million Euros in the first quarter of 2011. On the other hand, we aim to generate 275 million Euros of additional EBIT annually through growth and cost synergies. 135 million Euros will come from growth synergies by the end of 2015. We will benefit from leveraging the joint customer base as well as extended solution and innovation capabilities. We aim to realize 140 million Euros of cost synergies per year by the end of 2013. These are related to savings in procurement activities, the consolidation of administrative structures and the IT landscape as well as the improvement of production efficiency.
  • 14. Page 14 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Functional Solutions Strong automotive demand drove sales and earnings Q1’11 segment sales (million €) vs. Q1’10 EBIT before special items (million €) Catalysts Construction 165 158 1,677 Chemicals 150 142 +58% 469 111 +9% €2,818 100 +35% 50 33 Coatings 672 0 +13% Q1 Q2 Q3 Q4 Q1 2010 2011 Sales development Period Volumes Prices Portfolio Currencies Q1’11 vs. Q1’10 18% 13% 1% 3% BASF 1st Quarter 2011 Analyst Conference Call 9
  • 15. Page 15 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 [Chart 9: Functional Solutions – Strong automotive demand drove sales and earnings] Volumes in the Functional Solutions segment were significantly higher, reflecting the global recovery of the automotive industry. Demand from the construction industry rose slightly, primarily owing to the robust building activity in emerging markets. EBIT before special items improved substantially. Catalysts’ sales rose sharply, mainly attributable to higher volumes in mobile emissions and chemical catalysts as well as higher precious metal prices. As a result, our EBIT before special items came in far above the level of the previous year. Sales in Construction Chemicals grew slightly. We experienced a positive business development in Eastern Europe, Asia and South America, but North America remained challenging. Due to higher raw material and fixed costs, EBIT before special items did not match the previous year’s level. In Coatings, the positive trend in demand continued for all product lines. However, raw material prices could not yet be fully passed on. As a result, EBIT before special items was only up slightly.
  • 16. Page 16 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Agricultural Solutions Strong sales and earnings growth Q1’11 segment sales (million €) vs. Q1’10 EBIT before special items (million €) 1,400 1,230 400 +7% +7 % 343 1,200 1,145 321 1,000 300 800 600 200 400 100 200 0 0 Q1 Q1 Q1 Q1 2010 2011 2010 2011 Sales development Period Volumes Prices Portfolio Currencies Q1’11 vs. Q1’10 8% (2)% 0% 1% BASF 1st Quarter 2011 Analyst Conference Call 10
  • 17. Page 17 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 [Chart 10: Agricultural Solutions – Strong sales and earnings growth] Agricultural Solutions started the new season successfully. Positive market conditions with higher soft commodity prices and the improved liquidity situation of farmers contributed favorably to sales and earnings performance. We achieved sales growth across all regions and indications. Our fungicide business in Europe and North America performed particularly well. The development of Kixor, our recently launched herbicide, is well on track. Despite strong overall demand, there was price pressure on some herbicides in the North American market. Nevertheless, we have seen stable prices since last quarter.
  • 18. Page 18 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Oil & Gas Higher oil and gas prices compensated for lower volumes Q1’11 segment sales (million €) vs. Q1’10 EBIT before special items / Net income (million €) Exploration & 800 744 Production 629 118 1,068 600 +4% 145 €3,455 400 +7% 626 Natural Gas 200 484 273 306 Trading 2,387 0 +9% Q1 Q1 2010 2011 EBIT bSI Natural Gas Trading Net income EBIT bSI Exploration & Production Sales development Period Volumes Prices/Currencies Portfolio Q1’11 vs. Q1’10 (13)% 20% 0% BASF 1st Quarter 2011 Analyst Conference Call 11
  • 19. Page 19 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 [Chart 11: Oil & Gas – Higher oil and gas prices compensated for lower volumes] Sales in Oil & Gas increased slightly, mainly due to higher oil and gas prices. EBIT before special items improved significantly. Sales in Exploration & Production increased slightly. Higher oil prices, with Brent averaging 105 US Dollars per barrel compared with 76 US Dollars in Q1 2010 compensated for lower oil production in Libya. End of February, we suspended our oil production in Libya. Nevertheless, earnings increased substantially, driven by the higher oil prices. Since the winter in Europe was less severe compared to the first quarter 2010, volumes in Natural Gas Trading decreased. However, gas sales were up as a result of higher sales prices. Earnings, on the other hand, decreased significantly as a result of lower demand and negative time-lag effects. A look at the income statement shows, that net income after taxes and minority interests rose by 12 percent to 306 million Euros. Non- compensable oil production taxes amounted to 280 million Euros.
  • 20. Page 20 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Review of “Other” Million € Q1 2011 Q1 2010 Sales 1,812 1,338 thereof Styrenics 843 666 EBIT before special items (209) (266) thereof Corporate research (83) (82) Group corporate costs (55) (51) Currency results, hedges and other (78) (136) valuation effects Styrenics, fertilizers, other businesses 185 101 Special items (35) (34) EBIT (244) (300) BASF 1st Quarter 2011 Analyst Conference Call 12
  • 21. Page 21 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 [Chart 12: Review of “Other”] In “Other”, I would only like to highlight the positive business development of Styrenics, which benefitted from ongoing strong demand and higher prices. EBIT before special items in “Other” improved by 57 million Euros. Now I would like to hand back to Kurt.
  • 22. Page 22 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Excellent operating cash flow in Q1 2011 Million € Q1 2011 Q1 2010 Cash provided by operating activities 2,255 1,368 thereof Changes in net working capital 260 (680) Cash provided by investing activities 257 (454) thereof Payments related to tangible / intangible assets (547) (392) Cash used in financing activities (1,200) (757) thereof Changes in financial liabilities (1,073) (679) Dividends (127) (78) First quarter 2011 Despite improved business activities net working capital decreased slightly Free cash flow at €1.7 billion Net debt reduced by €2.4 billion to €11.1 billion since December 31, 2010 €972 million proceeds from the sale of K+S stake BASF 1st Quarter 2011 Analyst Conference Call 13
  • 23. Page 23 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Dr. Kurt Bock [Chart 13: Excellent operating cash flow in Q1 2011] Thank you, Hans. Let me now briefly talk about our cash flow before we conclude with the outlook. Thanks to our strong business performance in the first quarter, we generated an excellent operating cash flow of 2.3 billion Euros, up 900 million Euros compared with Q1 2010. Despite improved business activities, cash tied up in net working capital decreased slightly by 260 million Euros. This continues to demonstrate BASF’s outstanding cash generating capability. Cash from investing activities was positive and amounted to 257 million Euros; this included 972 million Euros of proceeds from the K+S disposal. Capex came in at 547 million Euros. As a result, we turned in a very strong free cash flow of 1.7 billion Euros in the first quarter. From the beginning of 2011, we were able to reduce net debt by 2.4 billion Euros to 11.1 billion.
  • 24. Page 24 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Outlook 2011 Assumptions We are increasing our Brent oil price forecast from $90/bbl to $100/bbl We are assuming that oil production in Libya will not restart during 2011 → EBIT before special items from our Libyan oil production for the full year 2011 will be about €1 billion lower compared with 2010 (thereof about €700 million of non-compensable oil taxes) Targets 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 expect to achieve 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 BASF 1st Quarter 2011 Analyst Conference Call 14
  • 25. Page 25 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 [Chart 14: Outlook 2011] Now let’s come to the outlook for 2011. What do we expect? We are increasing our Brent oil price forecast from 90 Dollars per barrel to 100 Dollars per barrel. We are assuming that the oil production in Libya will not restart during 2011. Based on this assumption, EBIT before special items from our Libyan oil production for the full year 2011 will be about 1 billion Euros lower compared with 2010. However, as you all know, of these 1 billion Euros about 700 million are non- compensable oil taxes. For the full year 2011, we still expect to generate significantly higher sales. Considering the suspension of oil production in Libya, EBIT before special items excluding non-compensable oil taxes provides a much more meaningful guidance for 2011. Thus, we aim to significantly exceed the 2010 EBIT before special items excluding non-compensable oil taxes which amounted to 7.2 billion Euros. Finally, we are committed to our target to achieve a high premium on our cost of capital in 2011. Thank you for your attention. We are now happy to take your questions. BASF 4Q/FY’2010 Conference | February 24th, 2011 40
  • 26. Page 26 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Back-Up BASF 1st Quarter 2011 Analyst Conference Call 16 BASF Group Q1 2011 Sales (billion €) EBIT before special items (billion €) 20 19.4 3.0 2.7 16.2 15.8 16.4 15.5 2.5 2.2 2.2 16 2.0 2.0 1.8 12 1.5 8 1.0 4 0.5 0 0.0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2010 2011 2010 2011 Sales development Period Volumes Prices Portfolio Currencies Q1’11 vs. Q1’10 5%* 13% 6% 1% * Volumes +9% (without Oil & Gas) BASF 1st Quarter 2011 Analyst Conference Call 17
  • 27. Page 27 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Financial highlights Strong earnings improvement in Q1 Million € Q1 2011 Q1 2010 Δ% Q4 2010 Δ% Sales 19,361 15,454 +25% 16,424 +18% changes due to - volumes +5% - prices +13% - portfolio 6% - currencies +1% EBITDA 3,365 2,627 +28% 2,703 +25% EBIT before special items 2,732 1,954 +40% 1,765 +55% Special items (182) (114) . (78) . EBIT 2,550 1,840 +39% 1,687 +51% Net income 2,411 1,029 +134% 1,100 +119% EPS (€) 2,62 1,12 +134% 1,20 +118% Adjusted EPS (€) 1,94 1,32 +47% 1,39 +40% BASF 1st Quarter 2011 Analyst Conference Call 18 Balance sheet further strengthened Balance sheet March 31, 2011 vs. end of 2010 (billion €) Proceeds from the sale of 60.2 60.2 BASF’s stake in K+S were 59.4 59.4 used to reduce debt Stock- Net debt decreased by €2.4 23.5 22.7 holders’ Long-term billion to €11.1 billion. Equity assets 32.7 Accounts receivable increased 34.5 by €0.9 billion due to the 13.9 Financial 15.0 debt expansion of our business Inventories 8.7 8.7 Equity ratio at 39% (up 1 Accounts 22.8 percentage point) receivable 11.1 10.2 21.7 Other liabilities Other assets 4.9 4.5 Liquid funds 2.8 1.5 Mar 31 Dec 31 Mar 31 Dec 31 2011 2010 2011 2010 BASF 1st Quarter 2011 Analyst Conference Call 19
  • 28. Page 28 BASF 1st Quarter 2011 Analyst Conference May 06, 2011 Cognis integration Generating €275 million of growth and cost synergies Synergies (million €) Growth synergies Providing joint customer base with access to broader portfolio 300 Increasing solution capabilities 250 Extending innovation capabilities Leveraging regional set-up 200 135 150 Cost synergies Realizing procurement cost 100 savings 140 Consolidating of administrative 50 structures 0 Improving production efficiency Consolidating IT landscape Growth synergies (by the end 2015) Cost synergies (by the end of 2013) BASF 1st Quarter 2011 Analyst Conference Call 20