SlideShare a Scribd company logo

BASF Performance Products June 2010

BASF
BASF

BASF Performance Products including an overview of BASF's Dispersions & Pigments, Paper Chemicals, Performance Chemicals and Care Chemicals.

1 of 67
Download to read offline
Growth. Value. Sustainability.




                                              BASF Performance Products
                                              Outperforming:
                                              Growth. Value. Sustainability.
                                              Dr. John Feldmann
BASF Performance Products Investor Day 2010                                    1
Growth. Value. Sustainability.


Performance Products:
Positioned to outperform
                                              Globally leading market positions serving a broad portfolio
                                              of industries
              Growth
                                              Industry lead in innovations developed in close cooperation
                                              with customers for both developed and emerging markets.

                                              Distinct customer interaction models allow to generate and fairly
                                              share additional value by serving differentiated customer needs
                Value
                                              Industry leader in managing complexity and cost efficiency


                                              Value generation throughout economic cycles

        Sustainability                        Outstanding contribution to consumers‘ need for sustainable
                                              well-being as well as resource and energy efficiency




BASF Performance Products Investor Day 2010                                                                       2
Growth. Value. Sustainability.

Four divisions serving a distinct portfolio
of industries
Sales Performance Products segment 2009: €9.4 billion




       Dispersions &                                Care                 Paper               Performance
         Pigments                                 Chemicals             Chemicals             Chemicals
 Sales 2009: €2.4 bn                          Sales 2009: €3.4 bn   Sales 2009: €1.3 bn   Sales 2009: €2.2 bn
     Pigments, Resins and                      Home Care             Paper coating         Plastics processing
     additives for                             Personal Care         chemicals             Oilfield & mining
     - Paints & coatings                       - Cosmetics           Paper production      Water
     - Printing & packaging                    Hygiene               chemicals             Automotive &
     Dispersions for                           Human Nutrition       Kaolin                refineries
     - Construction                            Animal Nutrition                            Textile & leather
     - Adhesives                               Pharma


BASF Performance Products Investor Day 2010                                                                      3
Growth. Value. Sustainability.

Broad array of end markets limits
downside
Performance Products sales by industry* - % of sales in 2009


                                              Paints & Coatings | Home & Personal Care |
            10 – 15 %
                                              Plastics Processing | Paper




                                              Nutrition | Hygiene | Textile & Leather |
               5 – 10 %
                                              Printing & Packaging



                                              Pharma | Construction | Adhesives | Water |
                     <5%                      Oilfield & Mining | Wood | Automotive |
                                              Refineries

* Distribution by direct customers of BASF

                                               No dependency on single industry cycle
BASF Performance Products Investor Day 2010                                                 4
Growth. Value. Sustainability.




Steady sales growth
Sales development (in billion €)*                                             Sustainable growth
                                                                                Steady sales increase since
 10
                                                                                2005, acceleration in 2009
   8
                                                                                through Ciba acquisition
                                                                                From April to December 2009,
   6                                                                            Ciba contributed ~ €2.3 billion
                                                                                of sales to the Performance
   4
                                                                                Products segment
   2                                                                            Sales in crisis year
                                                                                2009 vs. 2008
   0
                                                                                - Heritage BASF          -12%
              2005                 2006          2007          2008    2009
                                                                                - Heritage Ciba          -19%

       Performance Chemicals                  Care Chemicals
       Paper Chemical                         Dispersions & Pigments


* All data restated for 2009 segment portfolio

BASF Performance Products Investor Day 2010                                                                       5
Growth. Value. Sustainability.


Excellent basis for growth in
emerging markets
Sales development of Performance Products                                                   Growth in all regions even in
by region* (in million €) 2009 vs. 2008                                                     crisis year 2009 primarily due
                                                                                            to Ciba acquisition
                                                                                            Strong position in home market
North America                                                                    Europe
                                                                                            Europe and North America
2,222 (+13%)                                            49%                  4,339 (+5%)    Rapidly increasing sales in
                                                                                            growth regions, supported
                                                 9,356
                                          25%
                                                (+15%)                                      by Ciba acquisition in 2009
                              25%
South America,                                  6%   20%
Africa, Middle East                                                          Asia Pacific
871 (+31%)                                                                  1,924 (+40%)




*   By location of customer, 2009 sales including 9 months of legacy Ciba

BASF Performance Products Investor Day 2010                                                                                  6

Recommended

More Related Content

What's hot

Analysis of Berger Paints and Paints sector
Analysis of Berger Paints and Paints sectorAnalysis of Berger Paints and Paints sector
Analysis of Berger Paints and Paints sectorSamriddhyaChakrabort
 
Aeropharma Intern Report
Aeropharma Intern ReportAeropharma Intern Report
Aeropharma Intern ReportMurtofa Salekin
 
Asian paints- Product mix
Asian paints- Product mixAsian paints- Product mix
Asian paints- Product mixNiraj Kumar
 
Strategy of Bharat forge
Strategy of Bharat forge Strategy of Bharat forge
Strategy of Bharat forge Mayank Kumar
 
An analysis of the distribution channel of vodafone
An analysis of the distribution channel of vodafoneAn analysis of the distribution channel of vodafone
An analysis of the distribution channel of vodafoneTirthankar Sutradhar
 
Expansion of the Market of Berger Paints Through Alternative Distribution Cha...
Expansion of the Market of Berger Paints Through Alternative Distribution Cha...Expansion of the Market of Berger Paints Through Alternative Distribution Cha...
Expansion of the Market of Berger Paints Through Alternative Distribution Cha...Abhi Chauhan
 
Emami agrotech drx anurag of poject
Emami agrotech drx anurag of pojectEmami agrotech drx anurag of poject
Emami agrotech drx anurag of pojectAnurag Thakur
 
Virgin mobiles pricing for the very first time
Virgin mobiles  pricing for the very first timeVirgin mobiles  pricing for the very first time
Virgin mobiles pricing for the very first timeSwapnil Soni
 
Group 4 can nerolac easily beat asian paints
Group 4  can nerolac easily beat asian paintsGroup 4  can nerolac easily beat asian paints
Group 4 can nerolac easily beat asian paintsathirasugathan
 
Walmart Flipkart Deal
Walmart Flipkart DealWalmart Flipkart Deal
Walmart Flipkart DealRinkle Kaur
 
Summer training project (PPTs)
Summer training project (PPTs)Summer training project (PPTs)
Summer training project (PPTs)Vishaal
 
Dabur India a Case Study 2014
Dabur India a Case Study 2014Dabur India a Case Study 2014
Dabur India a Case Study 2014subinjazbaat
 
HUL - Marketing Environment Analysis
HUL - Marketing Environment AnalysisHUL - Marketing Environment Analysis
HUL - Marketing Environment AnalysisRuhilaNoor
 
Project on bajaj
Project on bajajProject on bajaj
Project on bajajsps2122
 
Patanjali Brand Extension
Patanjali Brand ExtensionPatanjali Brand Extension
Patanjali Brand ExtensionAyushi Mona
 
Asian paints final 1
Asian paints final 1Asian paints final 1
Asian paints final 1Ajay Patel
 
Case study of castrol india
Case study of castrol indiaCase study of castrol india
Case study of castrol indiaShashwat Shankar
 

What's hot (20)

Analysis of Berger Paints and Paints sector
Analysis of Berger Paints and Paints sectorAnalysis of Berger Paints and Paints sector
Analysis of Berger Paints and Paints sector
 
Aeropharma Intern Report
Aeropharma Intern ReportAeropharma Intern Report
Aeropharma Intern Report
 
Asian paints- Product mix
Asian paints- Product mixAsian paints- Product mix
Asian paints- Product mix
 
Strategy of Bharat forge
Strategy of Bharat forge Strategy of Bharat forge
Strategy of Bharat forge
 
An analysis of the distribution channel of vodafone
An analysis of the distribution channel of vodafoneAn analysis of the distribution channel of vodafone
An analysis of the distribution channel of vodafone
 
Expansion of the Market of Berger Paints Through Alternative Distribution Cha...
Expansion of the Market of Berger Paints Through Alternative Distribution Cha...Expansion of the Market of Berger Paints Through Alternative Distribution Cha...
Expansion of the Market of Berger Paints Through Alternative Distribution Cha...
 
Emami agrotech drx anurag of poject
Emami agrotech drx anurag of pojectEmami agrotech drx anurag of poject
Emami agrotech drx anurag of poject
 
Virgin mobiles pricing for the very first time
Virgin mobiles  pricing for the very first timeVirgin mobiles  pricing for the very first time
Virgin mobiles pricing for the very first time
 
Group 4 can nerolac easily beat asian paints
Group 4  can nerolac easily beat asian paintsGroup 4  can nerolac easily beat asian paints
Group 4 can nerolac easily beat asian paints
 
Walmart Flipkart Deal
Walmart Flipkart DealWalmart Flipkart Deal
Walmart Flipkart Deal
 
Nirma case study
Nirma case studyNirma case study
Nirma case study
 
Summer training project (PPTs)
Summer training project (PPTs)Summer training project (PPTs)
Summer training project (PPTs)
 
Dabur India a Case Study 2014
Dabur India a Case Study 2014Dabur India a Case Study 2014
Dabur India a Case Study 2014
 
Scm asian paints
Scm asian paintsScm asian paints
Scm asian paints
 
HUL - Marketing Environment Analysis
HUL - Marketing Environment AnalysisHUL - Marketing Environment Analysis
HUL - Marketing Environment Analysis
 
Project on bajaj
Project on bajajProject on bajaj
Project on bajaj
 
Reckitt benckiser
Reckitt benckiserReckitt benckiser
Reckitt benckiser
 
Patanjali Brand Extension
Patanjali Brand ExtensionPatanjali Brand Extension
Patanjali Brand Extension
 
Asian paints final 1
Asian paints final 1Asian paints final 1
Asian paints final 1
 
Case study of castrol india
Case study of castrol indiaCase study of castrol india
Case study of castrol india
 

Similar to BASF Performance Products June 2010

2013 investor presentation
2013 investor presentation2013 investor presentation
2013 investor presentationirneenahpaperinc
 
BASF Polyurethanes Division: Driving efficiency, comfort and sustainability
BASF Polyurethanes Division: Driving efficiency, comfort and sustainabilityBASF Polyurethanes Division: Driving efficiency, comfort and sustainability
BASF Polyurethanes Division: Driving efficiency, comfort and sustainabilityBASF
 
Marcum MicroCap Conference Presentation
Marcum MicroCap Conference PresentationMarcum MicroCap Conference Presentation
Marcum MicroCap Conference Presentationirneenahpaperinc
 
Capital Markets Day 2011 Yulia Moskvitina
Capital Markets Day 2011 Yulia MoskvitinaCapital Markets Day 2011 Yulia Moskvitina
Capital Markets Day 2011 Yulia MoskvitinaCTC Media, Inc.
 
AkzoNobel Q2 2010 Investor Presentation
AkzoNobel Q2 2010 Investor PresentationAkzoNobel Q2 2010 Investor Presentation
AkzoNobel Q2 2010 Investor PresentationAkzoNobel
 
KeyBanc Basic Materials & Packaging Conference
KeyBanc Basic Materials & Packaging ConferenceKeyBanc Basic Materials & Packaging Conference
KeyBanc Basic Materials & Packaging Conferenceirneenahpaperinc
 
Q4 and Full Year 2010 Results Investor Presentation
Q4 and Full Year 2010 Results Investor PresentationQ4 and Full Year 2010 Results Investor Presentation
Q4 and Full Year 2010 Results Investor PresentationAkzoNobel
 
Yara International Corporate Presentation 2012
Yara International Corporate Presentation 2012Yara International Corporate Presentation 2012
Yara International Corporate Presentation 2012Yara International
 
Presentation jbs conference call 3 q
Presentation jbs  conference call 3 qPresentation jbs  conference call 3 q
Presentation jbs conference call 3 qJBS RI
 
Akzo nobel press conference presentation q2 2010
Akzo nobel press conference presentation q2 2010Akzo nobel press conference presentation q2 2010
Akzo nobel press conference presentation q2 2010AkzoNobel
 
Effective communication strategies in the digital age
Effective communication strategies in the digital ageEffective communication strategies in the digital age
Effective communication strategies in the digital ageBASF
 
AkzoNobel Q2 2011 Investor Presentation
AkzoNobel Q2 2011 Investor PresentationAkzoNobel Q2 2011 Investor Presentation
AkzoNobel Q2 2011 Investor PresentationAkzoNobel
 
About BASF Care Chemicals
About BASF Care ChemicalsAbout BASF Care Chemicals
About BASF Care ChemicalsBASF
 
BASF - A sustainable investment
BASF - A sustainable investmentBASF - A sustainable investment
BASF - A sustainable investmentBASF
 
monsanto 11-10-05e
monsanto 11-10-05emonsanto 11-10-05e
monsanto 11-10-05efinance28
 
BASF Investor Day Automotive Key Note
BASF Investor Day Automotive Key NoteBASF Investor Day Automotive Key Note
BASF Investor Day Automotive Key NoteBASF
 
BASF Roundtable Agricultural Solutions 2012
BASF Roundtable Agricultural Solutions 2012BASF Roundtable Agricultural Solutions 2012
BASF Roundtable Agricultural Solutions 2012BASF
 
AkzoNobel Q1 2011 Investor Presentation
AkzoNobel Q1 2011 Investor PresentationAkzoNobel Q1 2011 Investor Presentation
AkzoNobel Q1 2011 Investor PresentationAkzoNobel
 

Similar to BASF Performance Products June 2010 (20)

2013 investor presentation
2013 investor presentation2013 investor presentation
2013 investor presentation
 
BASF Polyurethanes Division: Driving efficiency, comfort and sustainability
BASF Polyurethanes Division: Driving efficiency, comfort and sustainabilityBASF Polyurethanes Division: Driving efficiency, comfort and sustainability
BASF Polyurethanes Division: Driving efficiency, comfort and sustainability
 
Marcum MicroCap Conference Presentation
Marcum MicroCap Conference PresentationMarcum MicroCap Conference Presentation
Marcum MicroCap Conference Presentation
 
Mc donald english_29th
Mc donald english_29thMc donald english_29th
Mc donald english_29th
 
Capital Markets Day 2011 Yulia Moskvitina
Capital Markets Day 2011 Yulia MoskvitinaCapital Markets Day 2011 Yulia Moskvitina
Capital Markets Day 2011 Yulia Moskvitina
 
AkzoNobel Q2 2010 Investor Presentation
AkzoNobel Q2 2010 Investor PresentationAkzoNobel Q2 2010 Investor Presentation
AkzoNobel Q2 2010 Investor Presentation
 
KeyBanc Basic Materials & Packaging Conference
KeyBanc Basic Materials & Packaging ConferenceKeyBanc Basic Materials & Packaging Conference
KeyBanc Basic Materials & Packaging Conference
 
Q4 and Full Year 2010 Results Investor Presentation
Q4 and Full Year 2010 Results Investor PresentationQ4 and Full Year 2010 Results Investor Presentation
Q4 and Full Year 2010 Results Investor Presentation
 
Yara International Corporate Presentation 2012
Yara International Corporate Presentation 2012Yara International Corporate Presentation 2012
Yara International Corporate Presentation 2012
 
Presentation jbs conference call 3 q
Presentation jbs  conference call 3 qPresentation jbs  conference call 3 q
Presentation jbs conference call 3 q
 
Akzo nobel press conference presentation q2 2010
Akzo nobel press conference presentation q2 2010Akzo nobel press conference presentation q2 2010
Akzo nobel press conference presentation q2 2010
 
Effective communication strategies in the digital age
Effective communication strategies in the digital ageEffective communication strategies in the digital age
Effective communication strategies in the digital age
 
AkzoNobel Q2 2011 Investor Presentation
AkzoNobel Q2 2011 Investor PresentationAkzoNobel Q2 2011 Investor Presentation
AkzoNobel Q2 2011 Investor Presentation
 
Pirelli Industrial Plan 2009-11
Pirelli Industrial Plan 2009-11Pirelli Industrial Plan 2009-11
Pirelli Industrial Plan 2009-11
 
About BASF Care Chemicals
About BASF Care ChemicalsAbout BASF Care Chemicals
About BASF Care Chemicals
 
BASF - A sustainable investment
BASF - A sustainable investmentBASF - A sustainable investment
BASF - A sustainable investment
 
monsanto 11-10-05e
monsanto 11-10-05emonsanto 11-10-05e
monsanto 11-10-05e
 
BASF Investor Day Automotive Key Note
BASF Investor Day Automotive Key NoteBASF Investor Day Automotive Key Note
BASF Investor Day Automotive Key Note
 
BASF Roundtable Agricultural Solutions 2012
BASF Roundtable Agricultural Solutions 2012BASF Roundtable Agricultural Solutions 2012
BASF Roundtable Agricultural Solutions 2012
 
AkzoNobel Q1 2011 Investor Presentation
AkzoNobel Q1 2011 Investor PresentationAkzoNobel Q1 2011 Investor Presentation
AkzoNobel Q1 2011 Investor Presentation
 

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
 
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
 
Presentation analyst conference Q3 2021
Presentation analyst conference Q3 2021Presentation analyst conference Q3 2021
Presentation analyst conference Q3 2021BASF
 
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
 
Speech BASF analyst conference Q2 2021
Speech BASF analyst conference Q2 2021Speech BASF analyst conference Q2 2021
Speech BASF analyst conference Q2 2021BASF
 
Slides BASF analyst conference Q2 2021
Slides BASF analyst conference Q2 2021Slides BASF analyst conference Q2 2021
Slides BASF analyst conference Q2 2021BASF
 
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
 

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
 
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
 
Presentation analyst conference Q3 2021
Presentation analyst conference Q3 2021Presentation analyst conference Q3 2021
Presentation analyst conference Q3 2021
 
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
 
Speech BASF analyst conference Q2 2021
Speech BASF analyst conference Q2 2021Speech BASF analyst conference Q2 2021
Speech BASF analyst conference Q2 2021
 
Slides BASF analyst conference Q2 2021
Slides BASF analyst conference Q2 2021Slides BASF analyst conference Q2 2021
Slides BASF analyst conference Q2 2021
 
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
 

Recently uploaded

PUBLISHING AND LITERARY NETWORKS IN THE SOUTH WEST_EBOOK_WCOVER.pdf
PUBLISHING AND LITERARY NETWORKS IN THE SOUTH WEST_EBOOK_WCOVER.pdfPUBLISHING AND LITERARY NETWORKS IN THE SOUTH WEST_EBOOK_WCOVER.pdf
PUBLISHING AND LITERARY NETWORKS IN THE SOUTH WEST_EBOOK_WCOVER.pdfUniversity of Exeter MA Publishing
 
Serhii Herasymov: Boost sales through Accelerators (UA)
Serhii Herasymov: Boost sales through Accelerators (UA)Serhii Herasymov: Boost sales through Accelerators (UA)
Serhii Herasymov: Boost sales through Accelerators (UA)Lviv Startup Club
 
Let’s get moving! Setting some goals Optimizing your workflow
Let’s get moving! Setting some goals Optimizing your workflowLet’s get moving! Setting some goals Optimizing your workflow
Let’s get moving! Setting some goals Optimizing your workflowngothuyanct
 
How do hotel linen suppliers contribute to sustainable and eco-friendly pract...
How do hotel linen suppliers contribute to sustainable and eco-friendly pract...How do hotel linen suppliers contribute to sustainable and eco-friendly pract...
How do hotel linen suppliers contribute to sustainable and eco-friendly pract...indhumathi546580
 
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...Supavadee(Noi) Tantiyanon
 
Geocell manufacture in india Singhal industries
Geocell manufacture in india Singhal industriesGeocell manufacture in india Singhal industries
Geocell manufacture in india Singhal industriesdmktgsinghal
 
Diageo Strategy Presentation made in February 2024 CAGNY
Diageo Strategy Presentation made in February 2024 CAGNYDiageo Strategy Presentation made in February 2024 CAGNY
Diageo Strategy Presentation made in February 2024 CAGNYNeil Kimberley
 
5 Common Writing Mistakes Infographic.pdf
5 Common Writing Mistakes Infographic.pdf5 Common Writing Mistakes Infographic.pdf
5 Common Writing Mistakes Infographic.pdfRemar Barquilla
 
Ivan Verkalets: The Relevance of ISO 9001 & 27001 for Outsourcing Excellence ...
Ivan Verkalets: The Relevance of ISO 9001 & 27001 for Outsourcing Excellence ...Ivan Verkalets: The Relevance of ISO 9001 & 27001 for Outsourcing Excellence ...
Ivan Verkalets: The Relevance of ISO 9001 & 27001 for Outsourcing Excellence ...Lviv Startup Club
 
The Coca-Cola Company Presentation at CAGNY 2024.pdf
The Coca-Cola Company Presentation at  CAGNY 2024.pdfThe Coca-Cola Company Presentation at  CAGNY 2024.pdf
The Coca-Cola Company Presentation at CAGNY 2024.pdfNeil Kimberley
 
Industry Atom Marketing Trends for 2024 (B2B Version) (2).pdf
Industry Atom Marketing Trends for 2024 (B2B Version) (2).pdfIndustry Atom Marketing Trends for 2024 (B2B Version) (2).pdf
Industry Atom Marketing Trends for 2024 (B2B Version) (2).pdfIndustry Atom
 
Clean/Renewable Energy Virtual Investor Conference
Clean/Renewable Energy Virtual Investor ConferenceClean/Renewable Energy Virtual Investor Conference
Clean/Renewable Energy Virtual Investor ConferenceMarketing847413
 
Research Showcase 2024 final presentation slides
Research Showcase 2024 final presentation slidesResearch Showcase 2024 final presentation slides
Research Showcase 2024 final presentation slidesenterpriseresearchcentre
 
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYYIR
 
Construction Documents Guide: Types and Significance in 2024
Construction Documents Guide: Types and Significance in 2024Construction Documents Guide: Types and Significance in 2024
Construction Documents Guide: Types and Significance in 2024caddrafting1
 
Kraft Heinz Presentation at the 2024 CAGNY.pdf
Kraft Heinz Presentation at the 2024 CAGNY.pdfKraft Heinz Presentation at the 2024 CAGNY.pdf
Kraft Heinz Presentation at the 2024 CAGNY.pdfNeil Kimberley
 
D2 meeting agenda 02.12.24.hehehheeebebepdf
D2 meeting agenda 02.12.24.hehehheeebebepdfD2 meeting agenda 02.12.24.hehehheeebebepdf
D2 meeting agenda 02.12.24.hehehheeebebepdfsundaysantos13
 
02.22.2024 Email Options in Bloomerang.pdf
02.22.2024 Email Options in Bloomerang.pdf02.22.2024 Email Options in Bloomerang.pdf
02.22.2024 Email Options in Bloomerang.pdfBloomerang
 

Recently uploaded (20)

PUBLISHING AND LITERARY NETWORKS IN THE SOUTH WEST_EBOOK_WCOVER.pdf
PUBLISHING AND LITERARY NETWORKS IN THE SOUTH WEST_EBOOK_WCOVER.pdfPUBLISHING AND LITERARY NETWORKS IN THE SOUTH WEST_EBOOK_WCOVER.pdf
PUBLISHING AND LITERARY NETWORKS IN THE SOUTH WEST_EBOOK_WCOVER.pdf
 
2024 Calendar-eXperience MattersThailand
2024 Calendar-eXperience MattersThailand2024 Calendar-eXperience MattersThailand
2024 Calendar-eXperience MattersThailand
 
Serhii Herasymov: Boost sales through Accelerators (UA)
Serhii Herasymov: Boost sales through Accelerators (UA)Serhii Herasymov: Boost sales through Accelerators (UA)
Serhii Herasymov: Boost sales through Accelerators (UA)
 
Let’s get moving! Setting some goals Optimizing your workflow
Let’s get moving! Setting some goals Optimizing your workflowLet’s get moving! Setting some goals Optimizing your workflow
Let’s get moving! Setting some goals Optimizing your workflow
 
Stand Out on the Road with a Creative Box Truck Wrap
Stand Out on the Road with a Creative Box Truck WrapStand Out on the Road with a Creative Box Truck Wrap
Stand Out on the Road with a Creative Box Truck Wrap
 
How do hotel linen suppliers contribute to sustainable and eco-friendly pract...
How do hotel linen suppliers contribute to sustainable and eco-friendly pract...How do hotel linen suppliers contribute to sustainable and eco-friendly pract...
How do hotel linen suppliers contribute to sustainable and eco-friendly pract...
 
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...
 
Geocell manufacture in india Singhal industries
Geocell manufacture in india Singhal industriesGeocell manufacture in india Singhal industries
Geocell manufacture in india Singhal industries
 
Diageo Strategy Presentation made in February 2024 CAGNY
Diageo Strategy Presentation made in February 2024 CAGNYDiageo Strategy Presentation made in February 2024 CAGNY
Diageo Strategy Presentation made in February 2024 CAGNY
 
5 Common Writing Mistakes Infographic.pdf
5 Common Writing Mistakes Infographic.pdf5 Common Writing Mistakes Infographic.pdf
5 Common Writing Mistakes Infographic.pdf
 
Ivan Verkalets: The Relevance of ISO 9001 & 27001 for Outsourcing Excellence ...
Ivan Verkalets: The Relevance of ISO 9001 & 27001 for Outsourcing Excellence ...Ivan Verkalets: The Relevance of ISO 9001 & 27001 for Outsourcing Excellence ...
Ivan Verkalets: The Relevance of ISO 9001 & 27001 for Outsourcing Excellence ...
 
The Coca-Cola Company Presentation at CAGNY 2024.pdf
The Coca-Cola Company Presentation at  CAGNY 2024.pdfThe Coca-Cola Company Presentation at  CAGNY 2024.pdf
The Coca-Cola Company Presentation at CAGNY 2024.pdf
 
Industry Atom Marketing Trends for 2024 (B2B Version) (2).pdf
Industry Atom Marketing Trends for 2024 (B2B Version) (2).pdfIndustry Atom Marketing Trends for 2024 (B2B Version) (2).pdf
Industry Atom Marketing Trends for 2024 (B2B Version) (2).pdf
 
Clean/Renewable Energy Virtual Investor Conference
Clean/Renewable Energy Virtual Investor ConferenceClean/Renewable Energy Virtual Investor Conference
Clean/Renewable Energy Virtual Investor Conference
 
Research Showcase 2024 final presentation slides
Research Showcase 2024 final presentation slidesResearch Showcase 2024 final presentation slides
Research Showcase 2024 final presentation slides
 
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
 
Construction Documents Guide: Types and Significance in 2024
Construction Documents Guide: Types and Significance in 2024Construction Documents Guide: Types and Significance in 2024
Construction Documents Guide: Types and Significance in 2024
 
Kraft Heinz Presentation at the 2024 CAGNY.pdf
Kraft Heinz Presentation at the 2024 CAGNY.pdfKraft Heinz Presentation at the 2024 CAGNY.pdf
Kraft Heinz Presentation at the 2024 CAGNY.pdf
 
D2 meeting agenda 02.12.24.hehehheeebebepdf
D2 meeting agenda 02.12.24.hehehheeebebepdfD2 meeting agenda 02.12.24.hehehheeebebepdf
D2 meeting agenda 02.12.24.hehehheeebebepdf
 
02.22.2024 Email Options in Bloomerang.pdf
02.22.2024 Email Options in Bloomerang.pdf02.22.2024 Email Options in Bloomerang.pdf
02.22.2024 Email Options in Bloomerang.pdf
 

BASF Performance Products June 2010

  • 1. Growth. Value. Sustainability. BASF Performance Products Outperforming: Growth. Value. Sustainability. Dr. John Feldmann BASF Performance Products Investor Day 2010 1
  • 2. Growth. Value. Sustainability. Performance Products: Positioned to outperform Globally leading market positions serving a broad portfolio of industries Growth Industry lead in innovations developed in close cooperation with customers for both developed and emerging markets. Distinct customer interaction models allow to generate and fairly share additional value by serving differentiated customer needs Value Industry leader in managing complexity and cost efficiency Value generation throughout economic cycles Sustainability Outstanding contribution to consumers‘ need for sustainable well-being as well as resource and energy efficiency BASF Performance Products Investor Day 2010 2
  • 3. Growth. Value. Sustainability. Four divisions serving a distinct portfolio of industries Sales Performance Products segment 2009: €9.4 billion Dispersions & Care Paper Performance Pigments Chemicals Chemicals Chemicals Sales 2009: €2.4 bn Sales 2009: €3.4 bn Sales 2009: €1.3 bn Sales 2009: €2.2 bn Pigments, Resins and Home Care Paper coating Plastics processing additives for Personal Care chemicals Oilfield & mining - Paints & coatings - Cosmetics Paper production Water - Printing & packaging Hygiene chemicals Automotive & Dispersions for Human Nutrition Kaolin refineries - Construction Animal Nutrition Textile & leather - Adhesives Pharma BASF Performance Products Investor Day 2010 3
  • 4. Growth. Value. Sustainability. Broad array of end markets limits downside Performance Products sales by industry* - % of sales in 2009 Paints & Coatings | Home & Personal Care | 10 – 15 % Plastics Processing | Paper Nutrition | Hygiene | Textile & Leather | 5 – 10 % Printing & Packaging Pharma | Construction | Adhesives | Water | <5% Oilfield & Mining | Wood | Automotive | Refineries * Distribution by direct customers of BASF No dependency on single industry cycle BASF Performance Products Investor Day 2010 4
  • 5. Growth. Value. Sustainability. Steady sales growth Sales development (in billion €)* Sustainable growth Steady sales increase since 10 2005, acceleration in 2009 8 through Ciba acquisition From April to December 2009, 6 Ciba contributed ~ €2.3 billion of sales to the Performance 4 Products segment 2 Sales in crisis year 2009 vs. 2008 0 - Heritage BASF -12% 2005 2006 2007 2008 2009 - Heritage Ciba -19% Performance Chemicals Care Chemicals Paper Chemical Dispersions & Pigments * All data restated for 2009 segment portfolio BASF Performance Products Investor Day 2010 5
  • 6. Growth. Value. Sustainability. Excellent basis for growth in emerging markets Sales development of Performance Products Growth in all regions even in by region* (in million €) 2009 vs. 2008 crisis year 2009 primarily due to Ciba acquisition Strong position in home market North America Europe Europe and North America 2,222 (+13%) 49% 4,339 (+5%) Rapidly increasing sales in growth regions, supported 9,356 25% (+15%) by Ciba acquisition in 2009 25% South America, 6% 20% Africa, Middle East Asia Pacific 871 (+31%) 1,924 (+40%) * By location of customer, 2009 sales including 9 months of legacy Ciba BASF Performance Products Investor Day 2010 6
  • 7. Growth. Value. Sustainability. Business portfolio shaped to optimize cash generation Development of EBITDA before special items Strategic portfolio development (in million €) paying off 1.600 16% EBITDA bSI continuously 1.400 14% improving even in crisis years 2008 and 2009 1.200 12% 1.000 10% Steady improvement of EBITDA bSI margin 800 8% 600 6% In 2009 successfully coping with cost of Ciba integration 400 4% although only minor synergies 200 2% already effective 0 0% Negative Ciba EBITDA in 2008 2005 2006 2007 2008 2009 and Q1 2009 EBITDA before special items EBITDA before special items margin Improved value generation through repositioning of businesses BASF Performance Products Investor Day 2010 7
  • 8. Growth. Value. Sustainability. Powerful start to 2010: EBITDA margin of 18.7% in first quarter Q1’10 segment sales (in million €) vs. Q4’09 EBIT before special items (in million €) Paper Chemicals Performance Chemicals 500 420 725 419 +6% +7% 400 286 €2,871 300 209 +11% 200 123 Dispersions & 100 80 Care Chemicals Pigments 1,003 723 0 +13% +15% Q1 Q2 Q3 Q4 Q1 2009 2010 Sales development Period Volumes Prices Portfolio Currencies Q1’10 vs. Q4’09 7% 1% 0% 4% BASF Performance Products Investor Day 2010 8
  • 9. Growth. Value. Sustainability. Differentiated BASF Customer Interaction Models matched to customer needs Trader/transactional supplier Lean/reliable basics supplier Numerous anonymous or shallow Achieve benchmark leading cost position buyer-supplier relationships Supply reliability is important buying factor Spot market behavior Customers see differentiation in sustainability Standard package provider Product/process innovator Customers need certain breadth Customer interested in superior performance of product/service offering but cannot afford products/services for complete customization High spending in R&D required to fulfill Customers can configure own packages market needs Customer pays for value created in innovation Customized solution provider Value chain integrator Customers willing to partner with supplier Customers open to shift parts of their own to jointly develop solutions value chain Customers ask for customization of Substantial transaction cost and risk reduction product/service to fulfill their specific needs seen by customer Customer prepared to share value jointly created Distinct customer interaction models help managing complexity BASF Performance Products Investor Day 2010 9
  • 10. Growth. Value. Sustainability. Differentiated Customer Interaction Models at BASF Performance Products Lean/reliable Standard Product/process Customized basics supplier package provider innovator solution provider % of the 45 19 27 9 business Reliable quality Broader portfolio of Continuous stream Customer-specific supplier products & services of new products, cooperations to fulfill Sustainable product for differentiation in systems and unmet consumer BASF offering the market place business models needs Benchmark cost leader Leverages market Values industry Values innovation Fairly shares value opportunities specific synergies & contribution jointly created Customer Values quality, support sustainability and reliability of offering Cost leader defines lowest price limit Value created along the value chain compared Supply / demand balance defines market price to market standard defines price level Pricing Mitigating volatility essential Product life cycle management essential BASF Performance Products Investor Day 2010 10
  • 11. Growth. Value. Sustainability. Actively managing portfolio towards faster growth Strategic positioning of business units, share of segment sales 2009 (in %) Develop market position e.g. Plastic additives | Home Care | Resins | Dispersions | etc > 60% Reposition for profitable growth < 25% > 10% e.g. Paper Chemicals | Pigments Actively grow / expand market position < 5% e.g. Personal Care | Human Nutrition | Water Treatment Divest e.g. Leather & Textile Chemicals BASF Performance Products Investor Day 2010 11
  • 12. Growth. Value. Sustainability. Ciba acquisition greatly enhanced competitive position Past Position Current Position Market position enables BASF to Shape the market Coating Effects 4 1 Define industry standards Lead & encourage repositioning / restructuring Paper Chemicals 4 1 Plastic Additives 4 1 Pos 4 Pos 3 Pos 2 Pos 1 BASF Performance Products Investor Day 2010 12
  • 13. Growth. Value. Sustainability. Ciba integration: Synergy ramp-up and key facts Synergy ramp-up (in million €) Integration costs - 2009: €785 million Synergies in % of sales - 2010: ~ €200 million 500 12.5 - 2011/2012: ~ €100 million Target: at least €450 million Net reduction of positions 400 > 450 10 350 - Target: 3,800 300 7.5 - End of Q1’ 10: >1,300 200 Ciba non-production sites 5 130 - To be consolidated: 58 100 70 2.5 - Exited: 43 60 0 23 Ciba production sites end 2009 end 2010 end 2012 under strategic review (steady state) - Planned exit: 14* (Thereof already Run rate Effective implemented: 4) Cost synergies exceed our initial targets * On two sites exit of production activities only BASF Performance Products Investor Day 2010 13
  • 14. Growth. Value. Sustainability. Ciba acquisition strengthened BASF’s global R&D Wyandotte Ludwigshafen Trostberg Shanghai Basel established as the second largest R&D hub for BASF group overall Stronger footprint in growth region Asia Amagasaki BASF R&D activities in India consolidated at former Ciba R&D site in Chandivali New R&D hub in Japan for BASF through Ciba Tarrytown Basel Chandivali Singapore Legacy BASF R&D sites for Performance Products New BASF R&D sites for Performance Products (former Ciba) BASF Performance Products Investor Day 2010 14
  • 15. Growth. Value. Sustainability. Full R&D pipeline with net present value of more than €3 billion Performance Products R&D budget*: Net present value of R&D pipeline €300 million p.a. amounts to €3.2 billion New products Focus on unmet market Customer centric, well-balanced and consumer needs R&D approach 80% – Developed primarily in close €300 cooperation with customers million – About 100 formal development p.a. cooperations with key customers 5% 15% Typical medium size innovation Intellectual property Improved or management new processes projects with high potential for realization More than 800 projects currently * R&D portfolio after Ciba integration still under review BASF Performance Products Investor Day 2010 15
  • 16. Growth. Value. Sustainability. Rich R&D pipeline Trilon® M: Biodegradable One-stop innovation in chelate for dish-washing Plastic Additives with BASF Microlen® pigments and BASF Chimassorb® and Tinuvin® light stabilizers Soluplus®: excipient to Acronal Optive: Acrylic increase bio-availability of dispersions for high Pharma actives performance paints with low to zero VOC Polymers and surfactants Joncryl FLX: water-based to enhance oil recovery resin-technology for film printing BASF Performance Products Investor Day 2010 16
  • 17. Growth. Value. Sustainability. Performance Products: today and into the future 2009 Roadmap 2012 Vision 2020 Sales to 3rd parties Growth: Chemical industry € 9,4 billion 2% points above relevant leader to improve quality markets of life EBITDA bSI margin of 15% Value: Preferred partner for all EBITDA margin of performance & CIBA integration cost minimum 18% - innovation driven of € 785 million consistently earning a customers EBIT after cost of premium on cost of Comprehensive portfolio capital € - 930 million capital of value-adding and Sustainability: sustainable products Value generation and services throughout business Earning a substantial cycles premium on cost of Leading innovator for capital every year in sustainable solutions each division EBITDA margin of minimum 20% 17 BASF Performance Products Investor Day 2010 17
  • 18. Growth. Value. Sustainability. 1 | Dispersions & Pigments Markus Kramer 2 | Paper Chemicals Fred Baumgartner 3 | Performance Chemicals Hans W. Reiners 4 | Care Chemicals Gabriel Tanbourgi BASF Performance Products Investor Day 2010 1 1
  • 19. Growth. Value. Sustainability. The most comprehensive supplier to the coatings and surface industries Percentage of sales 2009 (€2.4 billion) by industry Paints & Printing & Construction Adhesives Others Coatings Packaging 45% 20% 11% 10% 14% Architectural Inks and Cementitious Pressure Electronic paints overprint applications sensitive materials varnishes adhesives Automotive Flooring MDF mass coatings Flexible and adhesives and Industrial coloration paperboard sealants adhesives for Industrial Technical and packaging, automotive, coatings Asphalt consumer publication furniture nonwovens BASF Performance Products Investor Day 2010 2
  • 20. Growth. Value. Sustainability. Full range of solutions from one supplier: Automotive sector Ingredients* BASF offering Effect Binders & Acrylic resins and Shaping coating Crosslinkers dispersions properties, e.g. scratch & ~70% UV resins and photo stain resistance, glossy initiators finish, fast curing Polyisocyanates Amino resins Pigments Complete portfolio of Coloration ~10% organic and inorganic Emotion & appearance pigments Preparations and dyes Protecting Light stabilizers Preserving coatings Additives Anti-oxidants quality against severe ~2% conditions, e.g. bleaching Formulation Dispersants Optimize processability Additives Rheology modifiers Provide the finishing touch ~2% Slip/leveling agents for a Coatings system * Rest: solvent ~15% BASF Performance Products Investor Day 2010 3
  • 21. Growth. Value. Sustainability. Best brands in the industry Ingredients Series Sales 2009 (in million €) Main industries Acronal® ~750 Paints & Coatings | Construction | Adhesives Binders & Crosslinkers Joncryl® ~250 Paints & Coatings | Printing & Packaging Irgazin® Pigments Paints & Coatings | Irgalite® ~200 Printing & Packaging Paliotol® Paints & Coatings | Tinuvin® ~150 Printing & Packaging Additives Paints & Coatings | Irgacure® ~100 Printing & Packaging | Electronic Materials 0 100 200 300 400 500 600 700 800 BASF Performance Products Investor Day 2010 4
  • 22. Growth. Value. Sustainability. Businesses well-positioned in high potential markets high Broadest portfolio of raw Adhesives Construction materials for paints & coatings Excellent position in resins for printing & packaging; pigment Market Attractiveness Market Attractiveness business focused on attractive sub-segments Leading position in dispersions middle for construction chemicals Paints & Printing & Coatings Strong position in dispersions Packaging to participate in attractive adhesives market low Market Position behind comparable leading BASF Performance Products Investor Day 2010 5
  • 23. Growth. Value. Sustainability. Market fundamentals have improved Growth drivers for Expected growth rate p.a. of Dispersions & Pigments strategically relevant markets 2010 – 2012 Growth of important end customer industries: - Automotive: Recovery after crisis, Raw materials for Paints and substantial market growth in China & Coatings +4-5% - Packaging: Trend towards packaged Raw materials for food, development retail structures & Printing & Packaging +3-4% global trade - Construction: Building activities in Dispersions and Polymers emerging markets (infrastructure, for Construction +4-5% commercial, residential) and Dispersions for Adhesives +5-6% renovation in established markets Substitution towards environmentally friendly technologies, e.g. water-based and UV curable systems BASF Performance Products Investor Day 2010 6
  • 24. Growth. Value. Sustainability. Globally successful – growing strength in emerging markets Sales development by region* (in million €) Strong market position (2009 vs. 2008) in Europe; crisis effects compensated by additional Ciba business North America Europe Established presence in 642 (+2%) 1,082 (+0%) North America 45% Industry leader in South 2,445 26% (+9%) America 25% Asia with strong growth South America, 7% 22% driven by Ciba integration Africa, Middle East Asia Pacific 177 (+14%) 544 (+48%) From April to December 2009, Ciba contributed ~€500 million of sales to Dispersions & Pigments * By location of customer, 2009 sales including 9 months of legacy Ciba BASF Performance Products Investor Day 2010 7
  • 25. Growth. Value. Sustainability. Customer models tailored to customer needs Lean/reliable Standard Product/process Customized basics supplier package provider innovator solution provider % of the 20 25 50 5 business Paints & Coatings Printing & Packaging Construction Adhesives Others BASF Performance Products Investor Day 2010 8
  • 26. Growth. Value. Sustainability. Driving performance in each of discreet customer interaction model Example: Paints & Coatings industry Lean/reliable Standard Product/process basics supplier package provider innovator % of the ~25 ~40 ~35 business Raw materials (resins, Pigments for automotive and Raw materials (dispersions, dispersions) for standard industrial coatings (e.g. resins, additives) for high Products paint & coating applications construction machinery, value paints and coatings (DIY market) household & electrical goods) Supply reliability Breadth of BASF pigment Superior performance Quality consistency portfolio products Key buying Competitive price/ Product / service packages Close R&D cooperation factor (e.g. analytical services, performance ratio formulation support) BASF Performance Products Investor Day 2010 9
  • 27. Growth. Value. Sustainability. Pigments moving toward a new level of performance KPI Impact of restructuring measures Closure of 12 production units at 6 sites in North & South America and Europe Production Sites Expansion or better usage of existing capacities at 6 other sites in Asia and Europe Optimization of up to 10 “stand alone” sites Product Portfolio Cut up to 40% Customer Predominantly “Standard Package Provider“ Interaction Model Personnel Reduction of more than 800 positions by 2013 Fixed Cost Total fixed cost will be reduced by €100 million Completion targeted for 2013 BASF Performance Products Investor Day 2010 10
  • 28. Growth. Value. Sustainability. Industry-leading portfolio of eco-aware innovations Desired technologies Examples of BASF products and services Low/zero VOC Acronal® Optive – low VOC acrylic resin latexes for paints Acronal® PRO 80: a new water based binder for anti-corrosion APEO free solutions primers with improved performance. e.g. protective coatings Formaldehyde free Acrodur® D Grades: Formaldehyde-free binders for particle and fiber substrates, products e.g. cork UV resins Laromer® & photoinitiators Irgacure® – the perfect match for eco- Eco-efficient curing efficient radiation curable systems, e.g. for automotive coatings Replacement of Sicopal Orange® L 2430: strong, brilliant, durable inorganic pigment for coating heavy metal pigments applications (e.g. construction machinery); free of lead chromates REACH* implementation support Customer support Sustainability assessment tools (e.g. SEEBALANCE, Eco-Efficiency Analysis) * Registration, Evaluation, Authorization and Restriction of Chemicals BASF Performance Products Investor Day 2010 11
  • 29. Growth. Value. Sustainability. Growth. Value. Sustainability. Dispersions & Pigments Roadmap 2012 Vision 2020 Growth: We are recognized as the comprehensive We focus on attractive market segments raw material supplier for the Coatings which grow above the chemical market industry Cost structure & Operational Excellence: We are the preferred partner for We restructure our assets and continuously formulating innovative and sustainable improve productivity coatings and printing solutions Life Cycle Management: We manage our businesses in line with their strategic positioning and invest in R&D and assets accordingly Sustainability: We offer innovative, differentiated and sustainable products and solutions We earn a premium on our cost of capital as of 2011 BASF Performance Products Investor Day 2010 12
  • 30. Growth. Value. Sustainability. 1 | Dispersions & Pigments Markus Kramer 2 | Paper Chemicals Fred Baumgartner 3 | Performance Chemicals Hans W. Reiners 4 | Care Chemicals Gabriel Tanbourgi BASF Performance Products Investor Day 2010 1 1
  • 31. Growth. Value. Sustainability. Portfolio of Paper Chemicals Percentage of sales 2009 (€1.3 billion) by industry Wet End Chemicals 41% Coating Chemicals Functional Process Chemicals Kaolin Chemicals 45% 25% 16% 14% Finishing chemicals to Functional chemicals Process chemicals Mining, refining and improve appearance to attribute specific to optimize costs and sale of Kaolin and performance properties to paper increase machine Paper, construction, of printed paper and efficiency Optical brightners catalyst substrates, board (OBA), dyes, sizing, Retention, drainage, plastics and rubber, Synthetic latex, starch strength fixation architectural coatings BASF Performance Products Investor Day 2010 2
  • 32. Growth. Value. Sustainability. Focusing on profitable growth Sales development by region* (in million €) Product/services offering under 2009 vs. 2008 review Historically broad product portfolio covering complete range of chemical requirements of paper industry North America Europe 280 (+23%) 652 (+23%) Excellent market position in Europe 49% with proximity to major technology 21% 1,326 development centers (+29%) Well established presence in North 25% America 7% South America, 23% Fast growth in Asia Pacific, support- Africa, Middle East Asia Pacific ing leadership in the emerging 96 (+43%) 298 (+46%) markets with broad product range and continuous innovation From April to December 2009, Ciba contributed €479 million of sales to Paper Chemicals * By location of customer, 2009 sales including 9 months of legacy Ciba BASF Performance Products Investor Day 2010 3
  • 33. Growth. Value. Sustainability. Business drivers Business drivers for Expected growth rate p.a. of strategically Paper Chemicals relevant markets 2010 – 2012 Paper chemicals growth very much in line with paper industry growth Europe, North America – stagnant to shrinking paper demand Asia, South America – strong growth potential Coating Chemicals 0–1 % for paper industry Increasing demand in coatings in Asia – strong Wet End Chemicals 1–2 % growth in coated paper grades Kaolin -1–0 % Increasing use of recycled fiber and lower grammages enhance need for production chemicals Increasing demand for retention, drainage and fixation due to new paper machines BASF Performance Products Investor Day 2010 4
  • 34. Growth. Value. Sustainability. Active repositioning of the paper chemicals business Challenges for the paper industry Stagnant markets in Increasing cost for wood Restructuring & consolidation all developed regions fibers and energy as well as to improve profitability in the more imports from Asia entire value chain Measures Combine, streamline and reposition BASF’s and former Ciba’s paper chemicals businesses Objectives Create a new, efficient market leader in specific market segments. Address market needs based on economies of scale, operational excellence, innovation power and technical expertise. BASF Performance Products Investor Day 2010 5
  • 35. Growth. Value. Sustainability. Different strategies under evaluation by product group high Paper Coating and Process Wet End Chemicals Process Chemicals Chemicals are our core businesses Strong backward integration into Verbund Market Attractiveness Customized solution provider Paper middle Coating Functional Chemicals and Kaolin have to be repositioned Wet End Chemicals Commoditized markets with low Functional Chemicals profitability due to strong Asian competition Kaolin low Market Position behind comparable leading BASF Performance Products Investor Day 2010 6
  • 36. Growth. Value. Sustainability. Customer Interaction Models tailored to customer needs Lean/reliable Customized solution basics supplier provider 80 % 20 % Build on existing strength in Coating Further strengthen good position in Chemicals and Functional Chemicals Process Chemicals Streamline portfolio offering Offer solutions for improved performance Focus on delivery reliability and of running paper machines by customers constant quality Benefit from strong technical interaction Consider investments in core areas with customers based on BASF chemical Evaluate acquisitions/divestments know how Kaolin under strategic evaluation Strive to become product/ process innovator for the paper chemicals industry BASF Performance Products Investor Day 2010 7
  • 37. Growth. Value. Sustainability. Global active repositioning of BASF‘s paper businesses within 1 year 1. Consolidate 2. Divest selected businesses 3. Streamline product and customer portfolio BASF Performance Products Investor Day 2010 8
  • 38. Growth. Value. Sustainability. 1. Consolidate Global production sites as of closing 2009 Kokemäki Lapua Mietoinen Kaipiainen Hamina Bradford Appleton Ludwigshafen Pischelsdorf Berwick Monaca Grenzach Suffolk Sens Ribécourt Chattanooga Tolosa Rokuromi West Memphis McIntosh Guturribay Jiangsu Middle Georgia SGBD - JV Altamira BACC Ankleshwar Mangalore Cengkareng Merak Paulinia Estrada do Colégio Guaratingueta Concon Altona Coating Chemicals General Lagos Wet End Chemicals Kaolin BASF Performance Products Investor Day 2010 9
  • 39. Growth. Value. Sustainability. 1. Consolidate Restructuring plans well advanced 10 productions consolidated in one year Hamina Bradford Appleton Ludwigshafen Pischelsdorf Monaca Grenzach Chattanooga Suffolk McIntosh Rokuromi West Memphis Jiangsu Middle Georgia SGBD - JV Altamira BACC Ankleshwar Mangalore Cengkareng Merak Paulinia Guaratingueta Concon Altona Coating Chemicals General Lagos Wet End Chemicals Kaolin BASF Performance Products Investor Day 2010 10
  • 40. Growth. Value. Sustainability. 1. Consolidate production sites in Europe to become lowest cost producer Latex production: from 6 to 3 Sizing production: from 3 to 1 Kaipiainen Hamina Ludwigshafen Grons Sens Ludwigshafen Ribécourt Tolosa Pischelsdorf Guturribay BASF Performance Products Investor Day 2010 11
  • 41. Growth. Value. Sustainability. 2. Divest selected businesses Exit strategy for starch businesses in Europe and North America Strategic rational Consequences No strategic rational for keeping Starch business in Finland is under stand-alone starch business as evaluation: sale or management buy out business scope is outside BASF core are potential options. Exit strategy competences and synergies are very agreed and discussions well advanced limited to rest of BASF paper chemicals Paper starch production site in Berwick, businesses PA/North America sold to Carolina Market and competitive position weak Starches LLC BASF Performance Products Investor Day 2010 12
  • 42. Growth. Value. Sustainability. 3. Streamline product and customer portfolio Concentrate Focus on regional efforts on sustainable and strategic markets with Portfolio profitable products Placement compelling future potential Implement appropriate CIM along with corresponding Pricing business and pricing BASF Performance Products Investor Day 2010 13
  • 43. Growth. Value. Sustainability. Innovation pipeline founded on process and coating chemicals The focus of R&D activities is on: improving core portfolio areas, like retention, drainage, fixation and coatings new innovative solutions for paper customers cost and performance improvements according to customer needs Luredur® Polyvinylamin Process innovation paper strength with thinner higher speed and machine Tailor-made system solutions layers efficiency and higher use of cheap fibers BASF Performance Products Investor Day 2010 14
  • 44. Growth. Value. Sustainability. Growth. Value. Sustainability. Paper Chemicals Roadmap 2012 Vision 2020 BASF is the new #1 supplier for paper Globally leading and preferred supplier of chemicals chemicals to the paper industry Businesses are currently repositioned Successfully participate in the significant with focus on CIMs growth of Asia and South America In Europe and North America focus is Deliver new innovative solutions to the on restructuring the business paper industry serving customer needs with a clear advantage In the growth regions Asia and South America BASF will exploit market Solidly contribute to segment profitability potential Our target is to earn our cost of capital by 2012 and thereafter BASF Performance Products Investor Day 2010 15
  • 45. Growth. Value. Sustainability. 1 | Dispersions & Pigments Markus Kramer 2 | Paper Chemicals Fred Baumgartner 3 | Performance Chemicals Hans W. Reiners 4 | Care Chemicals Gabriel Tanbourgi BASF Performance Products Investor Day 2010 1 1
  • 46. Growth. Value. Sustainability. Innovative partner adding value to specific customer industries Percentage of sales 2009 (€2.2 billion) by industry Plastics Automotive Oilfield and Water Leather and Processing and Refineries Mining Textile 40% 28% 7% 10% 15% Antioxidants Fuel/Refinery Process Municipal and Auxiliaries for Light Stabilizers Additives Chemicals for Industrial Leather/Textile Pigments for Lubricant Add. Extraction of Oil, Effluent Manufacturing Plastics Synthetic Lubes Gas, Metals and Treatment Solutions for Flame Engine Coolants Minerals Industrial Water Textile Printing Retardants Brake Fluids EOR Chemicals Management and Finishing BASF Performance Products Investor Day 2010 2
  • 47. Growth. Value. Sustainability. 2009 – Major improvement in our global reach Sales development by region* (in million €) (2009 including Ciba vs. 2008) Global sales growth in 2009 strongly driven by acquisition of Ciba with additional sales of €1.1 billion North America Europe Europe - our home market 458 (+247%) 1,008 (+143%) 46% with well established market position 21% 2,180 (+173%) Asia - already today second largest region, strongly South America, 7% positioned for further growth 26% Africa, Middle East Asia Pacific North America – position 151 (+190%) 563 (+194%) significantly strengthened by additional Ciba businesses South America, Middle East – well positioned for future growth * By location of customer, 2009 sales including 9 months of legacy Ciba BASF Performance Products Investor Day 2010 3
  • 48. Growth. Value. Sustainability. Growth drivers offer substantial value potential Growth drivers for Expected growth rate p.a. of strategically Performance Chemicals relevant markets 2010 – 2012 Growing population and emerging Plastics Processing +2-4% middle class in developing economies drive demand for consumer goods Increasing energy demand needs Oilfield and Mining +5-7% oil and gas from maturing and complex reservoirs Widening gap in water balance Water +4-6% requires increasing water treatment to produce clean water Growing need for mobility drives Automotive and Refineries +2-4% sustainable solutions for more efficient fuel consumption BASF Performance Products Investor Day 2010 4
  • 49. Growth. Value. Sustainability. Well positioned in attractive markets to leverage our potential high Oilfield/Mining Most of our businesses are Plastic Additives serving attractive markets Water based on excellent market Solutions Market Attractiveness positions Automotive/ In Leather and Textile Refinery Chemicals we evaluate middle strategic options. A value improvement/restructuring program is executed Leather/Textile low Market Position behind comparable leading BASF Performance Products Investor Day 2010 5
  • 50. Growth. Value. Sustainability. Customer interaction models tailored to customer needs Lean/reliable Standard Product/process Customized basics supplier package provider innovator solution provider % of the ~30 ~40 ~20 ~10 business Leather and Textile Fuel/Refinery Light Stabilizers Industrial Water Auxiliaries Additives Flame Retardants Management Product Antioxidants Standard Customer Specific Enhanced Oil examples … Flocculants Recovery PA Blends Pigments … … More than 1500 customer surveys to validate CIMs Ongoing High customer response rate - positive feedback confirming our leadership position activities Alignment of our businesses to respective CIMs in progress to create additional value, e.g. overall reduction of complexity by streamlining our product portfolio BASF Performance Products Investor Day 2010 6
  • 51. Growth. Value. Sustainability. BASF – the market leader in Plastic Additives With the Ciba acquisition, BASF became the market leader in Plastic Additives We offer an unmatched portfolio of antioxidants, light stabilizers and pigments to the plastics processing industry Innovative one-stop-shop solutions in close collaboration with our customers differentiate us from competition BASF Competitors We manage the business by focusing on our clear market Pigments approach, defined growth Antioxidants platforms and operational excellence Light stabilizers BASF Performance Products Investor Day 2010 7
  • 52. Growth. Value. Sustainability. Innovation to foster growth and create value BASF innovations to Plastic Additives with enhance oil recovery One-stop innovation Capitalizing on growth drivers and addressing customer needs Around 75% of R&D spending dedicated to product innovation Rheomax® to increase Keropur® to improve creating unique value mineral recovery fuel economy propositions for our customers Close to 15% of R&D spending dedicated to process innovation improving our competitiveness Steron® to enable Up to 10% of R&D spending Zetag® 9000 S to enhance waste water treatment new surface textures dedicated to managing our Weir Plate Bowl Bowl Drive intellectual property position Flocculant Sol. All legacy Ciba R&D projects are currently being validated Scroll Sludge Feed Differential Drive Centrate Cake BASF Performance Products Investor Day 2010 8
  • 53. Growth. Value. Sustainability. Innovations - “getting more out” for our customers in Oilfield, Mining and Water Innovations to enhance oil recovery (EOR) Challenge: Up to 65% of crude oil of producing reservoirs remain in the ground Our solution: Chemical EOR - New polymers and surfactants to significantly enhance oil recovery with specific advantages in more difficult fields (e.g. offshore, high salinity fields, heavy oils) Standard Flocculant Rheomax® Effect Rheomax® to increase mineral recovery Challenge: Water scarcity and decreasing availability of high quality ores Our solution: Rheomax® – Solid/liquid separation with higher throughput, Paste thickener water recovery and environmental protection Weir Zetag® 9000 Series to enhance waste water treatment Plate Bowl Bowl Drive Flocculant Sol. Challenge: Higher water recovery in waste water treatment processes Our solution: BASF Zetag® 9000 liquid flocculants enhance solid/liquid separation processes at low dosage levels with higher water recovery Scroll Sludge Feed Differential Drive Centrate Cake Centrifuge for dewatering of sludges BASF Performance Products Investor Day 2010 9
  • 54. Growth. Value. Sustainability. Innovations creating more value for our customers Plastic Additives with one-stop innovation Challenge: Creating jointly with our customer a beer crate - light-weight, robust, designed in premium aluminum optics Our solution: BASF Microlen® Green and Microlen® Yellow pigments, BASF Chimassorb® and Tinuvin® light stabilizers Keropur® to improve fuel economy Challenge: Improve fuel economy and reduce CO2 emissions of cars Our solution: Keropur® fuel performance packages reduce consumption of fuel and thereby CO2 emissions of cars Steron® to enable new surface textures Challenge: Enable versatile, high quality surfaces for various substrates Our solution: Steron® transfer coating technology with soft touch, attractive visual appearance and many design options BASF Performance Products Investor Day 2010 10
  • 55. Growth. Value. Sustainability. Growth. Value. Sustainability. Performance Chemicals Roadmap 2012 Vision 2020 Further create value by realizing Ciba Leading supplier of Plastic Additives with synergies and striving to be best-in- broad portfolio and know-how class Significant player in Oilfield/Mining Grow profitably 2% above our relevant Chemicals creating value with innovation markets based on Strong platform in Water Treatment – our excellent market positions and offering sustainable chemical solutions clear strengths and services – a consequent implementation Leading position with Automotive and of our CIMs Refinery Chemicals focusing on sustainable solutions Create additional value with focused investment into innovation We earn a premium on our cost of capital latest by 2012 BASF Performance Products Investor Day 2010 11
  • 56. Growth. Value. Sustainability. 1 | Dispersions & Pigments Markus Kramer 2 | Paper Chemicals Fred Baumgartner 3 | Performance Chemicals Hans W. Reiners 4 | Care Chemicals Gabriel Tanbourgi BASF Performance Products Investor Day 2010 1 1
  • 57. Growth. Value. Sustainability. Dedicated to human well-being Percentage of sales 2009 (€3.4 billion) by industry* Human & Home Care Personal Care Hygiene Pharma Animal Nutrition 18% 14% 15% 11% 23% Detergents Sunscreens Baby diapers Vitamins Excipients Automatic dish Color Feminine care Carotenoids Customer washing cosmetics Adult Omega-3 synthesis detergents Shampoos & incontinence Pharma active Surface conditioners protection ingredients cleaners Skin care … … BASF Performance Products Investor Day 2010 * Other industries (e.g. Construction, Agriculture): 19% 2
  • 58. Growth. Value. Sustainability. More wealth, more choice drives end markets Growth drivers for Expected growth rate p.a. of strategically Care Chemicals relevant markets 2010 – 2012 Consumers’ desire for wellness, health, convenience, and comfort Home Care 4-5% Demand for consumer goods driven by rising disposable income in developing Personal Care 4-5% countries Hygiene 4-5% Aging population taking more self- Human Nutrition 3-4% responsibility in health Animal Nutrition 2-3% Eco-friendly trend and increasing environmental awareness requiring Pharma 3-6% sustainable solutions BASF Performance Products Investor Day 2010 3
  • 59. Growth. Value. Sustainability. Resilient businesses capturing added emerging market growth Sales development by region* (in million €) From April to December 2009, 2009 vs. 2008 Ciba contributed ~ €200 million of sales (6%) Sales grew in the emerging Europe markets, despite the crisis 1,693 (-10%) North America 50% Profitability increased as a 855 (-7%) result of proactive margin and 3,405 25% cost management aligned with (-5%) 25% business models South America, 10% 15% New business and customers Africa, Middle East Asia Pacific developed during the crisis, 349 (+16%) 508 (+1%) leveraging our reliable supply * By location of customer, 2009 sales including 9 months of legacy Ciba BASF Performance Products Investor Day 2010 4
  • 60. Growth. Value. Sustainability. Global footprint serving customers worldwide Antwerp Ballerup Stony Brook Minden LU/MA Nanjing Tarrytown (under construction) Bradford Wyandotte Shenyang Lima Grenzach/ Monthey Gunsan Charlotte Washington Shanghai Suffolk Lyon Evionnaz/St. Vulbas (new application labs) Whitestone Kaohsiung Bishop Geismar Rayong Lerma Mumbai/ Freeport Thane Mangalore Guaratingueta Production site Application lab Sao Paulo Production site & Application lab Recent additions BASF Performance Products Investor Day 2010 5
  • 61. Growth. Value. Sustainability. Customer models tailored to customer needs Lean/reliable Standard Product/process Customized basics supplier package provider innovator solution provider % of sales ~59 ~8 ~26 ~7 Market Customer needs differentiation through innovation Competitive cost, reliable supply, high quality BASF R&D, M&S, SCM, resource regulatory support, sustainability support allocation Operational excellence BASF Performance Products Investor Day 2010 6
  • 62. Growth. Value. Sustainability. Well positioned for further profitable growth high We are active in highly Pharma attractive markets, driven by the health and wellness Home Care megatrends. Personal We have established leading Market Attractiveness Care positions in the Hygiene and Hygiene Home Care segments. middle We continuously improve our already strong positions in the Human & Animal Nutrition Personal Care, Nutrition, and Pharma areas. low Market Position behind comparable leading BASF Performance Products Investor Day 2010 7
  • 63. Growth. Value. Sustainability. Success as a “lean/reliable basics supplier” We focus on our operational Cracker C4 value chain Citral Verbund excellence and constantly improve our processes. Aroma Chemicals Vitamins, Carotenoids Focusing on our core strength and Verbund philosophy, we establish our cost leadership in Aroma Chemicals and Vitamins. Dietary Detergents Food supplement Perfumes Drink Customers BASF Performance Products Investor Day 2010 8
  • 64. Growth. Value. Sustainability. Long, consistent commitment to innovation Split of innovation spending 20% of sales generated with new product launches since 2005 Customer-driven product Exclusive customer improvement innovations Product life cycle management 30% 20% (examples): 20 Lutensol®, surfactants % launched 30 years ago, >30% 30 % sales from new launches Breakthrough Process innovations innovations Ibuprofen, pharma active 30% 20% launched 40 years ago, >10% sales from new launches BASF Performance Products Investor Day 2010 9
  • 65. Growth. Value. Sustainability. Cutting-edge innovations fulfilling unmet needs Soluplus® Unmet needs: satisfactory bioavailability of poorly soluble actives Our solution: solid solution with polymers Natugrain® TS Unmet needs: Better digestion of animal feed Our solution: highly effective splitting enzymes Lutensol® M Trilon® M Unmet needs: low temperature Unmet needs: phosphate washing substitute for dish washing Our solution: surfactant with Our solution: Eco-friendly, readily outstanding emulsifying properties bio-degradable chelates BASF Performance Products Investor Day 2010 10
  • 66. Growth. Value. Sustainability. Sustainability leadership generates results Superabsorbents for sustainability labeled diapers Customers launching Eco-Efficiency labeled baby diapers S.E.T. Initiative: Sustainability, Eco-efficiency, and Traceability Quantifying product sustainability combined with traceability First implementation in the salmon fish value chain BASF Performance Products Investor Day 2010 11
  • 67. Growth. Value. Sustainability. Growth. Value. Sustainability. Care Chemicals Roadmap 2012 Vision 2020 We are the leading supplier for We maintain our leading position by essentials of human well-being closing strategic gaps in Personal Care, Nutrition, and Pharma We innovate to improve quality of life, together with industry leading players We are the preferred partner for industry leading players, with broadened offering We grow faster than the strategically relevant market, sustainably and profitably We capitalize on accelerated growth in the emerging markets We continuously improve our cost competitiveness We continue to earn a substantial premium over our cost of capital BASF Performance Products Investor Day 2010 12