BASF Q3 Results Charts at Analyst Conference

13
Third Quarter 2013 Financial highlights October 25, 2013 Robust 3rd Quarter 2013 for BASF

Transcript of BASF Q3 Results Charts at Analyst Conference

Page 1: BASF Q3 Results Charts at Analyst Conference

Third Quarter 2013 Financial highlights October 25, 2013

Robust 3rd Quarter 2013 for BASF

Page 2: BASF Q3 Results Charts at Analyst Conference

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

Page 3: BASF Q3 Results Charts at Analyst Conference

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%

Page 4: BASF Q3 Results Charts at Analyst Conference

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

Page 5: BASF Q3 Results Charts at Analyst Conference

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

Page 6: BASF Q3 Results Charts at Analyst Conference

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

Page 7: BASF Q3 Results Charts at Analyst Conference

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

Page 8: BASF Q3 Results Charts at Analyst Conference

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

Page 9: BASF Q3 Results Charts at Analyst Conference

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

Page 10: BASF Q3 Results Charts at Analyst Conference

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

Page 11: BASF Q3 Results Charts at Analyst Conference

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

Page 12: BASF Q3 Results Charts at Analyst Conference

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

Page 13: BASF Q3 Results Charts at Analyst Conference

13