Mobile Emissions Catalysts for Asia - BASF · BASF Investor Day Asia Pacific, June 56 2013-...

Albert Heuser

President BASF (China)

Company Ltd.

June 07, 2013

Mobile Emissions Catalysts for Asia Frank Chen

Catalyst Research, Asia Pacific

Investor Day

Asia Pacific

Shanghai, June 5, 2013

2

BASF Investor Day Asia Pacific, June 5-6 2013

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.

3


Production of passenger cars and LCVs* (in million units)

North America

EMEA Japan

South Korea

Note: ASEAN comprises Indonesia, Thailand, Vietnam, Malaysia, and Philippines;

13

18 23

30

5 5

8 10

Production 2011; Global production 77 million units

Total production in 2020; Global production 122 million units

3.7%

South America

4 7

6.4%

3.0%

China

17

33 7.6%

India

4

13 14.0%

2.5%

ASEAN

3 6

8.0%

0%

* Light commercial vehicles

OEM production in emerging markets will double by 2020

Growth rate p.a.

Other Asian countries <1million units Source: LMCA

4

BASF Investor Day Asia Pacific, June 5-6 2013 Light Duty Heavy Duty Motorcycle

All OEMs face a major compliance challenge: Emissions reduction

Announced Regulations

Light Duty Heavy Duty Motorcycle

USA CA LEV III US Tier 3

US 2010 Global, 4a Global, 4b Global 5

US 10

Europe

Euro 5 Phase In Euro 6b Phase In Euro 6c Euro 7

Euro VI Euro VII

Global, 4a Global, 4b Global 5

Phase In Euro 4 Euro 5

Brazil Euro 5 Euro 6

Euro V Euro VI

Euro 3

Russia Euro 4 Euro 5 Euro 6

Euro IV Euro V Euro VI

India Euro 4 Euro 5

Euro IV Euro V

Euro 3

China Euro 4 Euro 5 Euro 6

Euro IV Euro V

Euro 3

South

Korea

Euro 5 Euro 6

Euro V Euro VI

Global 3 Global 4

Japan Post 2009 P.P Reg

Global, 4a Global, 4b Post 2009

Vietnam Euro 4 Euro 5

Euro 3

Thailand Euro 4 Euro 5

Euro 4

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Future Regulations

5


80

280

240

200

160

120

2020 2018 2016 2014 2010 2008 2006 2004 2002

95

164

125

130

229 241

158

143

2012

CO2 targets

(in g/km)

173 186

Fuel efficiency/CO2 targets present another significant challenge

Source: BCG

6


North America

Japan and Korea

China

India

Europe

South America

BASF – the market leader in Mobile Emissions Catalysts worldwide

7


Global R&D presence

~€140 million in catalysis

R&D spend in 2012

Focus on product

innovation and aligning

regional capabilities to

local market needs

>650 catalyst experts

globally

Supported by >10,000

scientists in global

Verbund

Key facts

Tokyo, Japan (NE Chemcat)

Seoul, Korea (Heesung)

Shanghai, China

Hannover,

Germany

Ludwigshafen,

Germany

Union & Iselin,

New Jersey

R&D sites

Beachwood,

Ohio

Nienburg, Germany

Guilin, China

Pasadena,

Texas

Huntsville,

Alabama

De Meern, Netherlands

Heidelberg,

Germany

A strong global R&D platform

8


Estimated annual sales of 25 million

passenger cars in China by 2020

BASF is market leader for mobile emissions

catalysts in China

BASF has leading position

among top 5 local OEMs

>20 million catalysts manufactured at

integrated Shanghai emissions catalysts and

R&D hub since 2000

>€65 million invested in Shanghai-based

operations to date

Targeting ~€50 million in incremental

Catalysts division investment in China

through 2016

A decade of progress in China

BASF catalysts site in Shanghai

BASF catalysts site in Shanghai

Strong proximity to the customer

9


Emission reduction standards gain

importance in emerging Asia

– Euro-4 standards have been enacted and

tighter Euro-5 requirements are on the way

Fuel quality in emerging Asia is different

from developed countries

Driving habits in emerging Asia differ from

developed countries

Shorter innovation cycles lead to more

frequent model introductions

Cars in China and India run at much lower

speeds

Emerging Asia presents unique challenges for mobile emissions catalysts

10


HC (hydrocarbons)

CO (carbon monoxide)

NOx (oxides of nitrogen)

Coating Base metal oxides + Platinum/Palladium/

Rhodium

H2O (water)

CO2 (carbon dioxide)

N2 (nitrogen) Three-Way Catalyst

(TWC)

Structure of Mobile Emissions Catalyst

11


Task

Equip new platform of

small to mid-sized car with

new generation of mobile

emissions catalysts

Engine size: 1.2 liter –

most popular engine size

in Asia

Challenges for BASF

Better performance

Lower cost

Shorter development time

from concept to results

Prestigious development project with a leading Chinese OEM

12


Shorten development time by using

proprietary aging lab

– Simulate 160,000 km road performance

– Fine tune quickly by local engine

dynamometer facility

Design unique catalyst to achieve better

emissions performance

– Tailor catalyst toward specific engine

requirements

– Minimize precious metal content by

optimizing Pd and Rh distribution

– Use more durable materials

Demonstrate performance and system

durability to customer

BASF leverages its local presence and R&D strengths in China with local OEM

13


NOx4) NMHC2)

THC1) CO/103)

Engineering target

Original EU IV catalyst

100,000 km

Newly developed catalyst

100,000 km

Newly developed catalyst

160,000 km

Performance of newly developed catalyst

vs. original Euro-4 catalyst and engineering target

1) total hydrocarbons 2) non-methane hydrocarbons 3) carbon monoxide 4) nitrogen oxides

BASFʼs innovative Catalystsʼ solutions provide better performance at lower cost

14


OEM requirements

Better performance

Lower cost

- New BASF catalyst shows better performance than original Euro-4 catalyst

- New BASF catalyst fulfills engineering targets and allows for safety margin

- New BASF catalyst requires less precious metals

- Significant cost saving for OEM

Shorter development time from concept to results

- Using BASFʼs expertise and proprietary aging lab significantly shortened

development time

- From development to demonstration in only eight months instead of 2 years

BASFʼs innovative Catalystsʼ solutions provide better performance at lower cost

15

BASF Investor Day Asia Pacific, June 5-6 2013 15

Electronic specialties for LCD panels Jan Sueltemeyer

Dispersions & Pigments Asia Pacific

Investor Day Asia Pacific Shanghai, June 5, 2013

2



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.

3


Do you remember? … not too long ago

4


Do you remember? … not too long ago

http://i1-mobile.softpedia-static.com/images/phones/16_1.jpg

5


TV trends

Larg

e S

ize

100 Hz

200 Hz

Lower power consumption (green trend)

3D display Smart TV

Flexible

Tomorrow 2008 2010

Slim & light

Cinema Ultra-high resolution

Conventional TV Internet TV Smart TV

6


LCD* panel market outgrows E&E industry

0

25

50

75

100

125

150

2005 2010 2015E

61

LCD Panel Market (in billion US$)

99

121 +7% p.a.

Source: DisplayBank Market Research

LCD panel market is highly innovation-driven leading to – new applications

(tablet PCs, smartphones, 3D TVs, etc.)

– shorter innovation cycles

Key requirements for LCD manufacturers are – improvement of image

quality – lowering of energy

consumption – reduction of production

costs

Key Facts

* LCD: Liquid crystal display

7


The entire LCD industry is located in Asia

Japan Sharp

JDI Panasonic

Korea Samsung

LG

Taiwan AUO

Innolux

China BOE Tianma CPT

All leading display producers are located in Korea, Taiwan and Japan

China is catching up fast

Today, there is no display production outside of Asia

8


BASFʼs electronics specialties business for LCD industry managed out of Asia

Taipei

Seoul

Switzerland Tokyo / Amagasaki

Global Business Management Marketing / Sales

Country sales team Product development / R&D

Production

Global business management steered out of Asia

Main focus on chemicals for the liquid crystal display industry – Pigments for color filters – Photoinitiators for UV curing

and photolithography – UV absorbers for light sensitive

components – Polymerizable liquid crystals for

optical films

Joint work between Europe and Asia to develop tailor made innovations for the Asian market

9


Structure of LCD panels

Backlight unit

Functional films

Liquid crystal cell

10


How do LCDs work? Close-Up of a Pixel

Transparent electrode

Glass

Liquid crystals

Thin film transistor

Polarizer

Black matrix Color filter

In LCD screens each pixel is made with three color filters: Red, Green and Blue

11


How do LCDs work? Close-Up of a Pixel

Transparent electrode

Glass

Liquid crystals

Thin film transistor

Polarizer

Black matrix Color filter

Polarizer

Each color filter is connected to a cell of liquid crystals to control the amount of light that can pass

12


Better image quality – Higher contrast ratio (white/black luminescence) – Improvement in color purity – Increase of brightness

Lower energy consumption – Reduction of backlight units through higher transparency of display components

New design opportunities – Reduction of LCD panel thickness to allow thinner displays

New features – 3D displays – High resolution – Smart TV

Lower production costs

Key demands of LCD producers

13


What is contrast Ratio?

TV set in daylight environment TV set in a dark room

14

BASF Investor Day Asia Pacific, June 5-6 2013 TV set in a dark room

15


High contrast ratio Low contrast ratio

16


0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

1997 2005 2011

Contrast ratio of Irgaphor® red pigments

99

1997 Launch of first Irgaphor® color

filter grade Applications: mobiles and

monitors

2005 2nd generation Irgaphor® color

filter grade Applications: TVs, mobiles and

monitors

2011 3rd generation Irgaphor® color

filter grade Applications: high-end TVs

and tablet PCs

Key Facts

BASFʼs innovative Irgaphor® color pigments drive huge improvement in image quality

Contrast ratio improved by >5 times

17


LCDs – BASF products in every pixel

Backlight unit

Functional films

Liquid crystal cell

Reflective film

Photospacers

Prism sheet

Optical films

Polarizer

Diffusion film

Polarizer

Optical films

Surface finishing

Light source

Glass substrate

Glass substrate

Protective layers

Color filter

Retardation film BASF solutions for LCDs Colorants: Irgaphor®

Photoinitiators: Irgacure®

Lightstabilizers: Tinuvin®

Liquid crystals: Paliocolor®

Dispersants: EFKA®

18


Capston Lau

Business Management Appliance Asia

Investor Day Asia Pacific Shanghai, June 5, 2013

2



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.

3


High-end models* (%)

Number of units (million)

*models with 3 doors or side-by-side

78

100

135

57

75

103

0

20

40

60

80

100

120

140

2005 2010 2015e0%

10%

20%

30%

40%

50%

60%

70%

Sources: Customer information, Euromonitor, BASF estimations

Global Asia-Pacific

Global sales constantly growing, driven by – replacement need – market penetration in

developing countries

Asian market of dominant importance, reaching regional share of ~75% until 2015

High-end segment catching up – 2005 ~8% share – 2015e ~13% share

Refrigerator sales continue to grow globally, high-end segment increasing

4


Asia 60%

Polyurethane appliance market 2012 by segment

Consumer refrigeration

70%

Europe 21%

Other 5 %

Commercial refrigeration 15%

Americas 19%

Polyurethane appliance market 2012 by region

Water heater 10%

~ 1,800kt ~ 1,800kt

Appliances is a major segment for polyurethanes, especially in Asia

5


OEMs demand cost conscious, pragmatic innovations from their suppliers

Strive for economies of scale

Appliance OEMs are striving for cost leadership AND differentiation potentials

6


Enhance design and feel of the refrigerator

Increase efficiency and weight characteristics

Decrease cost

Increase differentiation

BASF driving value in the appliance market

7


Elastollan®

LED optical waveguide

Permaskin®

Elastollan®

Shelves

Elastollan® Gasket

Elastollan® Soft Touch

Balindur™

Elastopor ®H

Elastocool ® Advanced

Elastofoam®I

COLO-FAST® WST ®

1

9

7

3

2

10

8

5

6

4

coolpure 1.1 – “Ten ways into a cool future”

Technics / nano / bionics / nature

Light / structure / energy

Reduction / monomaterials

Recyclability / sustainability

Product design trends:

8


Processed three-dimensional outer surface

Surface texture of the inside of the door

Back-printed with wood grain

Transparent polyurethane film, which can be back-printed with decors

Suitable for complex geometries

Freedom of design, enabling mass-customization

Replacement of materials, e.g. steel

Solvent-free alternative to conventional paintings

coolpure 1.1 – Permaskin®

9


Bottlerack, strayed light Swung shelves

New interior look-and-feel

Outstanding resistance, comparable to glass

Flexibility at low temperatures combined with high rigidity

Freedom of design, differentiation

Improved sound insulation properties

coolpure 1.1 – Elastollan® Shelves

10


Premium quality look-and-feel (Elastollan® Soft Touch door handle already successfully commercialized in automotive interior applications)

Lightfast and colour-stable material

High resistance to abrasion

No additional painting required

Lightfast and colour–stable soft touch

coolpure 1.1 – Elastollan® Soft Touch

11


Idea generation Global project kick-off

Trend studies

CAD files Final design

decision

Sneak preview at B/S/H/ board meeting

Going public at in-house fair Tianjin, China

HY2 2010 HY1 2011 HY2 2011 HY1 2012 HY2 2012 HY1 2013 …

Innovation workshops

Project milestones and next steps

http://www.fachhandel-kuerner.at/logos/logo_gorenje.gif

12


Address customer need to differentiate via design with material driven innovation

Enable material substitution (e.g. steel, glass)

Provide proof-of-concept for new ways how to enhance energy efficiency

Workshops with Appliance OEMs generating very high interest globally

– Premium access for BASF to product designers and marketing

– Joint follow-up projects, value / solution oriented discussions

BASF speaks the language of the appliance industry

13


Mobile Emissions Catalysts for Asia - BASF · BASF Investor Day Asia Pacific, June 56 2013-...

Documents

Transcript of Mobile Emissions Catalysts for Asia - BASF · BASF Investor Day Asia Pacific, June 56 2013-...