We add value as one company 150 years - BASF – ... January 12, 2015 BASF Capital Market Story...

Click here to load reader

  • date post

    06-Jul-2020
  • Category

    Documents

  • view

    0
  • download

    0

Embed Size (px)

Transcript of We add value as one company 150 years - BASF – ... January 12, 2015 BASF Capital Market Story...

  • BASF Capital Market Story January 2015 1

    150 years We add value as one company

    150 years Hans Engel CFO of BASF SE Commerzbank German Investment Seminar New York January 12, 2015

  • BASF Capital Market Story January 2015 2

    150 years

    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.

  • BASF Capital Market Story January 2015 3

    150 years

    BASF – Share information

     Symbol: BAS

     Trading Platform: Deutsche Börse

     ISIN: DE000BASF111

     IPO: January 30, 1952

     Type of shares: Registered shares

     Trading lot: none, one share is tradable

     Free float (according to Deutsche Börse): 100 %

     Number of subscribed shares outstanding (as of 12/31/2014): 918,478,694

     Symbol: BASFY

     OTC Trading Platform: OTCQX

     CUSIP: 055262505

     Ratio: 1 ADR : 1 Ordinary Share

     Depositary bank: Deutsche Bank Trust Company Americas – Tel: +1 212 250 9100 (New York broker desk) – Tel: +44 207 547 6500 (London broker desk) – E-mail: [email protected] – Website: www.adr.db.com

     Depositary bank’s local custodian: Deutsche Bank AG, Frankfurt

    Ordinary Share information ADR information

  • BASF Capital Market Story January 2015 4

    150 years

     Chemistry as an enabler  BASF has superior growth

    opportunities: – sustainable innovations – investments – emerging markets

     The #1 chemical company  €74 billion sales, €7.2 billion

    EBIT bSI in 2013  #1-3 in >75% of businesses,

    present in >200 countries  6 integrated Verbund sites,

    production in 60 countries

     A track record of strong sales and earnings growth

     14% average annual dividend increase, >3% yield in every single year*

     ~€64 billion market capitalization end of December 2014

    Performance Perspective

    * For 2004-2013

    Ludwigshafen, Germany

    Antwerp, Belgium

    Nanjing, China

    Kuantan, Malaysia Geismar,

    USA Freeport, USA

    Verbund site

    Positioning

    We create chemistry for a sustainable future

  • BASF Capital Market Story January 2015 5

    150 years

    Percentage of sales 2013*

    * Not depicted here: ~6% of Group sales reported as ‘Other‘

    BASF today – a well-balanced portfolio Total sales 2013: €74 billion

  • BASF Capital Market Story January 2015 6

    150 years

    Global reduction in carbon emissions of 6.1 million metric tons/a. and reduction of waste

    Example Ludwigshafen: avoidance of 7 million metric tons of freight/a. = 280,000 fewer truckloads

    Shared use of on-site facilities: fire department, security, waste water treatment and analytics

    Verbund generates >€1 billion p.a. global cost savings*, supports sustainability

    * Savings include only tangible synergies. Additional (intangible) benefits and retained profits are not included.

  • BASF Capital Market Story January 2015 7

    Business review

    Growth Levers

  • BASF Capital Market Story January 2015 8

    150 years

    Q3 2014: BASF with higher sales and earnings despite declining demand

    Sales development Period Volumes Prices Portfolio Currencies

    Q3’14 vs. Q3’13 7% (4%) 0% 0%

    Q1-Q3 2014 vs. Q1-Q3 2013 6% (3%) 0% (2%)

     

    Business performance Q3’14 vs. Q3’13 Q1-Q3’14 vs. Q1-Q3’13

     Sales €18.3 billion +3% €56.3 billion +1%

     EBITDA €2.5 billion +1% €8.2 billion +4%

     EBIT before special items €1.8 billion +9% €6.0 billion +5%

     EBIT €1.8 billion +8% €6.1 billion +8%

     Net income €1.0 billion (5%) €3.8 billion +3%

     Reported EPS €1.14 (5%) €4.16 +3%

     Adjusted EPS €1.27 (1%) €4.45 +2%

      

  • BASF Capital Market Story January 2015 9

    150 years

    Recent transaction with Statoil

     Acquisition of participations in oil & gas fields in Norway

     Purchase price amounts to US$1.25 billion

     Increase of production to ~60,000 boepd in Norway

     Additional reserves and resources of ~170 million boe

     Transaction closed December 1st, 2014

    Restructuring of Performance Products

    Strengthening of R&D platforms

    Important corporate developments

     BASF to sell textile chemicals business to Archroma

     Paper Chemicals division to be dissolved, product lines moved to other divisions

     Strategic options for parts of kaolin business in evaluation

     Total earnings improvement of ~€500 million by 2017

     Future set up of global research platforms:

    - Process Research & Chemical Engineering, led out of Europe

    - Bioscience Research, led out of North America (from 2015)

    - Advanced Materials & Systems Research, led out of Asia (from 2016)

    http://bilddb.basf-ag.de/webreader/main/get_content.jsp?obj_id=090080e880404e9e&format=jpeg_lres

  • BASF Capital Market Story January 2015 10

    150 years

    0

    1

    2

    3

    4

    2004 2005 2006 2007 2008 2009** 2010 2011 2012 2013 Q1-Q3 2014

    Strong free cash flow generation

    * Cash provided by operating activities less capex (in 2005 before CTA) ** 2009 adjusted for re-classification of settlement payments for currency derivatives

    Free cash flow* in € billion

    2.6

    3.3 3.5

    3.2

    2.5

    3.2

    3.9 3.7

    2.6

    3.2

    1.3

  • BASF Capital Market Story January 2015 11

    150 years

    0.85 1.00

    1.50

    1.95 1.95 1.70

    2.20 2.50

    2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

    Growing dividend with attractive yield

    * Dividend yield based on share price at year-end

    Dividend payments

    3.7% 3.2% 3.1% 4.1% 3.8% 7.0% 3.9%

    Dividend yield* 4.6%

    2.60 2.70

    3.7%

    ** Based on BASF share price of €77.49 on Dec. 30, 2013

    Dividend per share (€)

    3.5%

    Dividend Policy  We want to grow or at least

    maintain our dividend

     Dividend of €2.70 per share for 2013, an increase of 3.8%

     2004-2013: Average annual dividend increase of ~14%

     Attractive dividend yield of 3.5% in 2013**

     Dividend yield above 3% in any given year since 2004

  • BASF Capital Market Story January 2015 12

    150 years

    Delivering consistent, long-term value

    Average annual performance with dividends reinvested

    0 3 6 9 12 15 18

    Euro Stoxx 50

    DAX 30

    MSCI World Chemicals

    +8.7%

    Last 5 years January 2010 – December 2014

    +13.9%

    +4.5%

    +10.5%

    +11.9%

    Last 10 years January 2005 – December 2014

    BASF

    +9.6%

    +3.8%

    +14.5%

  • BASF Capital Market Story January 2015 13

    150 years

    We aim to:

     increase our sales volumes excluding the effects of acquisitions and divestitures

     slightly increase EBIT bSI compared with 2013

    Outlook 2014

     GDP: 2.3% (previous: 2.5%)

     Industrial production: 3.4% (previous: 3.7%)

     Chemical production: 4.0% (previous: 4.4%)

     US$ / Euro: 1.35 (unchanged)

     Oil price (US$ / bbl): 105 (previous: 110)

    Assumptions 2014

    Outlook 2014

  • BASF Capital Market Story January 2015 14

    Business review

    Growth levers – Portfolio development

    – Market approach – Innovations for a sustainable future – Investments – Acquisitions – Operational excellence

  • BASF Capital Market Story January 2015 15

    150 years

    BASF out