BASF posts strong results                                                Second Quarter 2011                              ...
Forward-looking statementsThis presentation includes forward-looking statements that are subject to risks anduncertainties...
BASF posts strong resultsSecond quarter 2011 highlights  Business performance                            Q2’11            ...
Important milestones in Q2 2011                            Styrolution                   New TDI plant in Europe     Joint...
Focus on future marketsBASF intensifying R&D around electromobility Market trends    Sustainable electromobility is key to...
Outlook 2011 Assumptions      We forecast Brent oil price of $110/bbl (from $100/bbl) and US$/€ of $1.40 (from $1.35)     ...
ChemicalsRobust sales and earnings supported by price increasesQ2’11 segment sales (million €) vs. Q2’10                  ...
PlasticsStrong demand in all product lines resulted in increased earningsQ2’11 segment sales (million €) vs. Q2’10        ...
Performance ProductsStrong earnings contributions from acquired Cognis businessQ2’11 segment sales (million €) vs. Q2’10  ...
Functional SolutionsStrong demand from automotive drove earnings growthQ2’11 segment sales (million €) vs. Q2’10          ...
Agricultural SolutionsHigh global demand for agricultural products drove volume growthQ2’11 segment sales (million €) vs. ...
Oil & GasHigher oil and gas prices compensated for lower volumesQ2’11 segment sales (million €) vs. Q2’10                 ...
Review of “Other” Million €                                                            Q2 2011        Q2 2010 Sales       ...
Operating cash flow in H1 2011 Million €                                                          H1 2011       H1 2010 Ca...
BASF 2nd Quarter 2011 Analyst Conference Call   15
Back-UpBASF 2nd Quarter 2011 Analyst Conference Call   16
Financial highlights Million €                                      Q2 2011    Q2 2010     Δ%     Q1 2011     Δ% Sales    ...
Balance sheet reviewBalance sheet June 30, 2011 vs. end of 2010 (billion €)                                               ...
Cognis – integration objectivesTargets   Achieve 20% EBITDA margin   in the Performance Products segment by 2012      Acqu...
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BASF Analyst Conference Q2 2011

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Charts accompanying the 2Q2011 Conference Call for investors and analysts on July 28, 2011

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BASF Analyst Conference Q2 2011

  1. 1. BASF posts strong results Second Quarter 2011 Financial highlights July 28, 2011BASF 2nd Quarter 2011 Analyst Conference Call 1
  2. 2. Forward-looking statementsThis presentation includes forward-looking statements that are subject to risks anduncertainties, including those pertaining to the anticipated benefits to be realized from theproposals described herein. This presentation contains a number of forward-lookingstatements including, in particular, statements about future events, future financialperformance, plans, strategies, expectations, prospects, competitive environment,regulation and supply and demand. BASF has based these forward-looking statements onits views with respect to future events and financial performance. Actual financialperformance of the entities described herein could differ materially from that projected in theforward-looking statements due to the inherent uncertainty of estimates, forecasts andprojections, and financial performance may be better or worse than anticipated. Given theseuncertainties, readers should not put undue reliance on any forward-looking statements.Forward-looking statements represent estimates and assumptions only as of the date thatthey were made. The information contained in this presentation is subject to change withoutnotice and BASF does not undertake any duty to update the forward-looking statements,and the estimates and assumptions associated with them, except to the extent required byapplicable laws and regulations.BASF 2nd Quarter 2011 Analyst Conference Call 2
  3. 3. BASF posts strong resultsSecond quarter 2011 highlights Business performance Q2’11 vs. Q2’10 Sales €18.5 billion +14% EBITDA €3.0 billion +5% EBITDA margin 16.3% 17.7% EBIT before special items (bSI) €2.2 billion +1% EBIT bSI adjusted for non-comp. oil taxes €2.2 billion +12% EBIT €2.2 billion +7% Net income €1.5 billion +23% EPS €1.59 +23% Adjusted EPS €1.75 +17% Robust sales and earnings growth in the chemicals business with volumes up 5% Excellent performance of the acquired former Cognis business Earnings in Agricultural Solutions increased despite adverse weather conditions Sales growth in Oil & Gas was price driven. Net income rose by 74%BASF 2nd Quarter 2011 Analyst Conference Call 3
  4. 4. Important milestones in Q2 2011 Styrolution New TDI plant in Europe Joint venture of BASF and INEOS to form TDI is a key component for polyurethane the global market leader in styrenics foams with growth rates above GDP Joint venture contract signed BASF to expand its leading position in TDI FTC and EU antitrust approval received with a new 300kt/a plant in Europe Closing subject to remaining approvals from The world‘s largest single-train TDI plant antitrust authorities in other countries Superior technology and unique Verbund Closing of joint venture expected in Q4 2011 concept provide industry leading cost structure Start-up of production in 2014BASF 2nd Quarter 2011 Analyst Conference Call 4
  5. 5. Focus on future marketsBASF intensifying R&D around electromobility Market trends Sustainable electromobility is key to climate friendly mobility High-performance batteries and innovative solutions for weight reduction and heat management are essential for efficient electromobility BASF activities Investment of three-digit million euro sum over the next five years for R&D and production of battery materials • Current investment in innovative cathode materials plant in Elyria, Ohio to start up in mid-2012 Portfolio expansion by entering electrolytes and positioning BASF as future system supplier for high performance batteries Lightweight construction solutions and heat management systems further help to reduce energy consumption Electromobility – leveraging BASF’s R&D and business platformsBASF 2nd Quarter 2011 Analyst Conference Call 5
  6. 6. Outlook 2011 Assumptions We forecast Brent oil price of $110/bbl (from $100/bbl) and US$/€ of $1.40 (from $1.35) We assume 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 2012BASF 2nd Quarter 2011 Analyst Conference Call 6
  7. 7. ChemicalsRobust sales and earnings supported by price increasesQ2’11 segment sales (million €) vs. Q2’10 EBIT before special items (million €)Intermediates Inorganics 800 765 351 687 674693 617+7% +8% 537 600 €3,392 400 +14% 200 Petrochemicals 2,348 0 +18% Q2 Q3 Q4 Q1 Q2 2010 2011Sales development Period Volumes Prices Portfolio Currencies Q2’11 vs. Q2’10 2% 20% 0% (8)%BASF 2nd Quarter 2011 Analyst Conference Call 7
  8. 8. PlasticsStrong demand in all product lines resulted in increased earningsQ2’11 segment sales (million €) vs. Q2’10 EBIT before special items (million €)Polyurethanes 400 371 393 383 3491,498+7% 285 €2,828 200 +9% Performance Polymers 0 1,330 +12% Q2 Q3 Q4 Q1 Q2 2010 2011Sales development Period Volumes Prices Portfolio Currencies Q2’11 vs. Q2’10 4% 12% 0% (7)%BASF 2nd Quarter 2011 Analyst Conference Call 8
  9. 9. Performance ProductsStrong earnings contributions from acquired Cognis businessQ2’11 segment sales (million €) vs. Q2’10 EBIT before special items (million €)Care Chemicals Performance 600 554 5131,353 Chemicals 500 471+100% 908 400 370 +13%Nutrition €4,095 300 294& Health480 +30% 200+29% 100 Dispersions Paper Chemicals & Pigments 0 417 937 Q2 Q3 Q4 Q1 Q2 (5)% +9% 2010 2011Sales development Period Volumes Prices Portfolio Currencies Q2’11 vs. Q2’10 2% 6% 27% (5)%BASF 2nd Quarter 2011 Analyst Conference Call 9
  10. 10. Functional SolutionsStrong demand from automotive drove earnings growthQ2’11 segment sales (million €) vs. Q2’10 EBIT before special items (million €)Catalysts Construction 165 158 1671,500 Chemicals 150 142+22% 577 0% €2,766 100 +13% 50 33 Coatings 689 0 +6% Q2 Q3 Q4 Q1 Q2 2010 2011Sales development Period Volumes Prices Portfolio Currencies Q2’11 vs. Q2’10 12% 8% 0% (7)%BASF 2nd Quarter 2011 Analyst Conference Call 10
  11. 11. Agricultural SolutionsHigh global demand for agricultural products drove volume growthQ2’11 segment sales (million €) vs. Q2’10 EBIT before special items (million €)1,400 1,211 0% 1,205 400 +3% 3311,200 3201,000 300 800 600 200 400 100 200 0 0 Q2 Q2 Q2 Q2 2010 2011 2010 2011Sales development Period Volumes Prices Portfolio Currencies Q2’11 vs. Q2’10 6% 0% 0% (6)%BASF 2nd Quarter 2011 Analyst Conference Call 11
  12. 12. Oil & GasHigher oil and gas prices compensated for lower volumesQ2’11 segment sales (million €) vs. Q2’10 EBIT before special items/ Net income (million €)Exploration & 600 515Production563 Non-compensable(34)% 400 oil taxes 209 €2,461 332 420 +4% 200 269 Natural Gas 257 Trading 95 148 63 1,898 0 +25% Q2 Q2 2010 2011 EBIT bSI Exploration & Production Net income EBIT bSI Natural Gas TradingSales development Period Volumes Prices/Currencies Portfolio Q2’11 vs. Q2’10 (19)% 23% 0%BASF 2nd Quarter 2011 Analyst Conference Call 12
  13. 13. Review of “Other” Million € Q2 2011 Q2 2010 Sales 1,714 1,471 thereof Styrenics 811 785* EBIT before special items (163) (301) thereof Corporate research (87) (78) Group corporate costs (59) (55) Currency results, hedges and other (118) (198) valuation effects Styrenics, fertilizers, other businesses 76 67 Special items 27** (106) EBIT (136) (407) * Since January 1, 2011, Styrenics only includes the carved-out styrenics businesses; the previous year’s values were adjusted accordingly ** Incl. €68 million from repeal of fine imposed by the EU on Ciba in 2009BASF 2nd Quarter 2011 Analyst Conference Call 13
  14. 14. Operating cash flow in H1 2011 Million € H1 2011 H1 2010 Cash provided by operating activities 3,038 2,721 thereof Changes in net working capital (1,178) (1,355) Cash provided by investing activities 81 (599) thereof Payments related to tangible / intangible assets (1,265) (889) Cash used in financing activities (2,764) (2,054) thereof Changes in financial liabilities (486) (292) Dividends (2,278) (1,762) First half 2011 Operating cash flow at €3.0 billion despite reclassification of €887 million gain from the sale of K+S stake Free cash flow at €1.8 billion Net debt amounted to €12.3 billion, a reduction of €1.3 billion since end of 2010BASF 2nd Quarter 2011 Analyst Conference Call 14
  15. 15. BASF 2nd Quarter 2011 Analyst Conference Call 15
  16. 16. Back-UpBASF 2nd Quarter 2011 Analyst Conference Call 16
  17. 17. Financial highlights Million € Q2 2011 Q2 2010 Δ% Q1 2011 Δ% Sales 18,461 16,214 +14% 19,361 (5)% changes due to - volumes +2% - prices +13% - portfolio +5% - currencies (7)% EBITDA 3,015 2,867 +5% 3,365 (10)% EBIT before special items 2,237 2,206 +1% 2,732 (18)% EBIT before special items 2,237 1,997 +12% 2,452 (9)% adjusted for non-compensable oil taxes Special items 20 (127) - (182) - EBIT 2,217 2,079 +7% 2,550 (13)% Net income 1,454 1,183 +23% 2,411 (40)% EPS (€) 1.59 1.29 +23% 2.62 (39)% Adjusted EPS (€) 1.75 1.50 +17% 1.94 (10)%BASF 2nd Quarter 2011 Analyst Conference Call 17
  18. 18. Balance sheet reviewBalance sheet June 30, 2011 vs. end of 2010 (billion €) Long-term assets decreased by 59.3 59.3 €2.0 billion amongst others due 59.4 59.4 to the sale of shares in K+S Stock- Inventories increased by €0.8 23.0 22.7 holders’ Long-term billion reflecting the expansion Equity assets 32.5 34.5 of our business and raw material inflation Financial 14.1 15.0 debt Net debt decreased by €1.3 Inventories 9.5 8.7 billion to €12.3 billion Accounts 22.2 Accounts receivable were up by receivable 10.9 10.2 21.7 Other liabilities €0.7 billion as a result of the Other assets 4.6 4.5 1.8 1.5 expansion of our business Liquid funds Jun 31 Dec 31 Jun 31 Dec 31 Equity ratio at 39% 2011 2010 2011 2010 (up 1 percentage point)BASF 2nd Quarter 2011 Analyst Conference Call 18
  19. 19. Cognis – integration objectivesTargets Achieve 20% EBITDA margin in the Performance Products segment by 2012 Acquisition accretive as of 2012Costs 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) − H1/2011: €210 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 2013BASF 2nd Quarter 2011 Analyst Conference Call 19

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