Post on 23-Aug-2014
description
Third Quarter 2013 Financial highlights October 25, 2013
Robust 3rd Quarter 2013 for BASF
Cautionary note regarding forward-looking statements
This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. BASF has based these forward-looking statements on its views and assumptions with respect to future events and financial performance. Actual financial performance could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. The information contained in this presentation is subject to change without notice 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 by applicable laws and regulations.
2 BASF Q3 2013 Analyst Conference Call October 25, 2013
Robust 3rd quarter 2013 for BASF
Sales development Period Volumes Prices Portfolio Currencies
Q3’13 vs. Q3’12 6% (1%) 1% (5%)
3 BASF Q3 2013 Analyst Conference Call October 25, 2013
Business performance Q3’13 vs. Q3’12 Q1-Q3’13 vs. Q1-Q3’12
Sales €17.7 billion +1.5% €55.8 billion +3%
EBITDA €2.5 billion +16% €7.8 billion (1%)
EBIT before special items €1.7 billion +15% €5.7 billion +6%
EBIT €1.7 billion +20% €5.6 billion (1%)
Net income €1.1 billion +18% €3.7 billion (4%)
Reported EPS €1.20 +19% €4.03 (4%)
Adjusted EPS €1.28 +10% €4.35 +1%
Operating cash flow €2.0 billion +21% €6.0 billion +19%
Cash offer of 4 US dollars per share,
Offer expires on October 31, 2013
Enterprise value ~62 million US dollars
Acquisition will strengthen BASF‘s footprint in the enzyme growth market
Optimization of global production network
Reduction of 650 positions worldwide
Investment of €250 million in production and R&D
Transaction completed July 31, 2013
Increased production from 3,000 to ~40,000 boe per day in Norway
Compensation payment of 781 million US dollars*
Important corporate developments
4
Transaction with Statoil completed
Restructuring in Pigments business
Cash offer for Verenium enzyme biotechnology
BASF Q3 2013 Analyst Conference Call October 25, 2013
* Euro/dollar exchange rate July 31, 2013: €1= $1.3275
Chemicals Pressure on volumes and margins
Intermediates 700
(7%)
Monomers 1,599
(11%)
Petrochemicals 1,925
(6%)
€4,224 (8%)
Q3’13 segment sales (million €) vs. Q3’12
Sales development Period Volumes Prices Portfolio Currencies
Q3’13 vs. Q3’12 (2%) (3%) 0% (3%)
5
EBIT before special items (million €)
569445
650
495 527
0
200
400
600
800
Q3 Q4 Q1 Q2 Q3
2013 2012
BASF Q3 2013 Analyst Conference Call October 25, 2013
Performance Products Growth in volumes and earnings
Performance Chemicals
896
(3%)
Care Chemicals 1,209
(1%)
€3,939(1%)
Paper Chemicals 365
(8%)
Q3’13 segment sales (million €) vs. Q3’12
Nutrition & Health 540
+10% Dispersions & Pigments
929
(2%)
EBIT before special items (million €)
Sales development Period Volumes Prices Portfolio Currencies
Q3’13 vs. Q3’12 6% (3%) 1% (5%)
344
183
379 394 376
0
200
400
600
Q3 Q4 Q1 Q2 Q3
6 BASF Q3 2013 Analyst Conference Call October 25, 2013
2013 2012
Functional Materials & Solutions Sound overall demand, especially in automotive
Catalysts 1,466
+12%
Construction Chemicals
576
(9%)
Coatings 728
(5%)
€4,439+3%
Q3’13 segment sales (million €) vs. Q3’12
Sales development Period Volumes Prices Portfolio Currencies
Q3’13 vs. Q3’12 8% 2% (1%) (6%)
Performance Materials 1,669
+5%
231 228 239293 300
0
200
400
600
Q3 Q4 Q1 Q2 Q3
7
EBIT before special items (million €)
BASF Q3 2013 Analyst Conference Call October 25, 2013
2013 2012
Agricultural Solutions Sales growth despite pronounced currency headwinds
Q3’13 segment sales (million €) vs. Q3’12
Sales development Period Volumes Prices Portfolio Currencies
Q3’13 vs. Q3’12 8% 4% 3% (10%)
0
100
200
Q3 Q30
300
600
900
1.200
Q3 Q3
1,054 172 171 1,008
8
EBIT before special items (million €)
2013 2012
BASF Q3 2013 Analyst Conference Call October 25, 2013
2013 2012
103
318
62
451
0
100
200
300
400
500
Q3/2012 Net Income Q3/2013 Net Income
Oil & Gas Substantially higher net income
Exploration & Production
754
+15%
Natural Gas Trading 2,376
+29% €3,130 +25%
Q3’13 segment sales (million €) vs. Q3’12 EBIT bSI/Net income (million €)
Natural Gas Trading
Exploration & Production
Net income
Sales development Period Volumes Prices/Currencies Portfolio
Q3’13 vs. Q3’12 22% (2%) 5%
499
396 360
422
9 BASF Q3 2013 Analyst Conference Call October 25, 2013
Review of “Other”
Million € Q3’13 Q3’12 Sales 947 1,087 EBIT before special items (105) (343) Thereof Corporate research Group corporate costs Currency result, hedges and other Valuation effects Other business
(90) (57) (74)
59
(95) (63)
(249)
30
Special items (24) (44)
EBIT (129) (387)
10 BASF Q3 2013 Analyst Conference Call October 25, 2013
Cash Flow Excellent cash flow in Q1-Q3 2013
Million € Q1-Q3’13 Q1-Q3’12 Cash provided by operating activities 5,982 5,025 Thereof Changes in net working capital Miscellaneous items
374 (327)
(639) (450)
Cash provided by investing activities (4,629) (2,018) thereof Payments related to tangible / intangible assets (3,038) (2,702) Acquisitions / divestitures (1,093) 411 Cash used in financing activities (1,300) (3,383) thereof Changes in financial liabilities Dividends
1,304 (2,604)
(868) (2,510)
Net working capital decreased
Increased capex at €3 billion
Strong free cash flow of €2.9 billion against €2.3 billion in 2012
Equity ratio of 41%; net debt increased by €1.8 billion to €13 billion
Q1-Q3 2013
11 BASF Q3 2013 Analyst Conference Call October 25, 2013
We do not anticipate an acceleration of global economic growth in the 4th quarter of 2013
For the full year, BASF confirms its outlook: We strive to exceed the record levels in sales and EBIT before special items in a challenging economic environment
Our focus on growth markets and innovation, in combination with our measures to optimize our portfolio and to improve operational excellence, will contribute to this
We aim to earn a high premium on cost of capital in 2013
Outlook 2013
GDP: +2.0% (unchanged)
Industrial production: +2.7% (unchanged)
Chemical production: +3.1% (unchanged)
US$ / Euro: 1.30 (unchanged)
Oil price (US$ / bbl): 105 (unchanged)
Assumptions 2013
Outlook 2013
12 BASF Q3 2013 Analyst Conference Call October 25, 2013
13