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1 We add value as one company Ingo Rose Director Investor Relations Roadshow California June 7-8, 2016

We add value as one company - BASF USA - Home California June 7-8, 2016 BASF Capital Market Story, June 2016 2 150 years Cautionary note regarding forward-looking statements This presentation

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  • BASF Capital Market Story, June 2016 1We add value as one company

    Ingo RoseDirectorInvestor Relations

    Roadshow California

    June 7-8, 2016

  • BASF Capital Market Story, June 2016 2

    150 years

    Cautionary note regarding forward-looking statements

    This presentation may contain forward-looking statements that are subject to risks anduncertainties, including those pertaining to the anticipated benefits to be realized from theproposals described herein. Forward-looking statements may include, in particular, statementsabout 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 financialperformance. Actual financial performance 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. Theinformation contained in this presentation is subject to change without notice and BASF doesnot undertake any duty to update the forward-looking statements, and the estimates andassumptions associated with them, except to the extent required by applicable laws andregulations.

  • BASF Capital Market Story, June 2016 3

    150 years

    BASF Share information

    Symbol: BAS

    Trading Platform: Deutsche Brse

    ISIN: DE000BASF111

    IPO: January 30, 1952

    Type of shares: Registered shares

    Trading lot: none, one share is tradable

    Free float (according to Deutsche Brse):100 %

    Number of subscribed shares outstanding (as of 12/31/2015):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 banks local custodian: Deutsche Bank AG, Frankfurt

    Ordinary Share information ADR information

  • BASF Capital Market Story, June 2016 4

    150 years

    Chemistry as an enabler BASF has superior growth

    opportunities: sustainable innovations investments emerging markets

    The #1 chemical company 70.4 billion sales, 6.7

    billion EBIT bSI in 2015 #1-3 in ~70% of businesses,

    present in almost all countries

    6 integrated Verbund sites, production in 60 countries

    A track record of strong sales and earnings growth

    >3.5% dividend yield in every single year from 2006-2015

    ~66 billion market capitalization on April 29, 2016

    PerspectiveLudwigshafen,Germany

    Antwerp,Belgium

    Nanjing,China

    Kuantan,MalaysiaGeismar,

    LouisianaFreeport,Texas

    Verbund site

    Positioning

    We create chemistry for a sustainable future

    Performance

    20

    30

    40

    50

    60

    70

    80

    90

    2008 2009 2010 2011 2012 20142013 2015

  • BASF Capital Market Story, June 2016 5

    150 years

    Percentage of sales 2015*

    * Not depicted here: ~4% of Group sales reported as Other ** Natural Gas Trading has been divested on Sep. 30, 2015.

    BASF today a well-balanced portfolioTotal sales 2015: 70.4 billion

  • BASF Capital Market Story, June 2016 6

    150 years

    Global reduction in carbon emissions of 6 million metric tons p.a. and reduction of waste

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

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

    Verbund: Unique competitive advantage

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

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

  • BASF Capital Market Story, June 2016 7

    150 years

    0

    1

    2

    3

    4

    5

    2006 2007 2008 2009** 2010 2011 2012 2013 2014 2015

    Strong free cash flow

    * Cash provided by operating activities less capex ** 2009 adjusted for re-classification of settlement payments for currency derivatives

    Free cash flow*(in billion )

    3.53.2

    2.5

    3.2

    3.9 3.7

    2.6

    3.2

    1.7

    3.6

    Diagramm1

    3.529

    3.245

    2.502

    3.186

    3.912

    3.695

    2.587

    3.21

    1.7

    3.6

    Free Cash Flow

    Sheet1

    2006200720082009**201020112012201320142015

    Free Cash Flow3.5293.2452.5023.1863.9123.6952.5873.2101.73.6

  • BASF Capital Market Story, June 2016 8

    150 years

    0.0

    0.5

    1.0

    1.5

    2.0

    2.5

    3.0

    2006 2009 2012 2015

    2.90

    We want to grow or at least maintain our dividend at the previous years level

    Dividend of 2.90 per share, an increase of 3.6%

    Dividend yield of 4.1% in 2015

    Dividend yield above 3.5%in any given year since 2006

    4.6%

    Attractive shareholder return

    Key facts 2015

    Dividend per share ()

    0.50

    1.00

    1.50

    2.00

    * Dividend yield based on share price at year-end

    4.1% 3.8% 7.0% 3.9% 3.7%Yield* 3.7%

    2.50

    3.5%

    3.00

    4.0% 4.1%

    1.50

    1.95 1.951.70

    2.202.50 2.60 2.70

    Dividend policy

    2.80

  • BASF Capital Market Story, June 2016 9

    150 years

    Average annual performance with dividends reinvested

    0 3 6 9 12 15

    Euro Stoxx 50

    DAX 30

    MSCI World Chemicals

    +6.1%

    Last 5 yearsJune 2011 May 2016

    +5.9%

    +4.5%

    +7.1%

    +6.5%

    Last 10 yearsJune 2006 May 2016

    BASF

    +7.2%

    +1.4%

    +12.7%

    Delivering consistent, long-term value

    Diagramm1

    7.2

    6.1

    1.6

    12.7

    Ost

    9.1%

    12.0%

    8.1%

    Sheet1

    MSCI WorldDAXEuro StoxxBASF

    Ost7.26.101.612.7

  • BASF Capital Market Story, June 2016 10

    Q1 2016 reporting

    Business development

    Path forward: Our priorities

  • BASF Capital Market Story, June 2016 11

    150 years

    Sales development Volumes Prices Portfolio Currencies

    Q1 2016 vs. Q1 2015 0% (6%) (22%) (1%)

    Q1 2016: BASF with slightly lower earnings compared to strong prior-year quarter

    Financial figures Q1 2016 Q1 2015 Change

    Sales 14.2 billion 20.1 billion (29%)

    EBITDA 2.8 billion 2.9 billion (3%)

    EBIT before special items 1.9 billion 2.1 billion (8%)

    EBIT 1.9 billion 2.0 billion (6%)

    Net income 1.4 billion 1.2 billion +18%

    Reported EPS 1.51 1.28 +18%

    Adjusted EPS 1.64 1.43 +15%

    Operating cash flow 1.0 billion 2.4 billion (56%)

  • BASF Capital Market Story, June 2016 12

    150 years

    Milestones in Q1 2016

    Start-up of butanediol plant at the integrated PolyTHF complex in Korla, China

    JV with Avantium intended for production of furandicarboxylicacid (FDCA) in Belgium

    Update of peak sales potential for product launches in Agricultural Solutions

    Joint operation of polyoxymethylene (POM)with Kolon Plastics planned in Korea

  • BASF Capital Market Story, June 2016 13

    150 years

    Outlook 2016 Sales will be considerably below prior year, due to the divestiture of the natural gas trading

    and storage activities and the lower oil and gas prices. Excluding the effects of acquisitions and divestitures, we expect higher volumes in all segments. We expect EBIT before special items to be slightly below the previous year driven by

    drastically lower earnings of Oil & Gas. We plan higher earnings in our chemicals business and in the Agricultural Solutions segment. EBIT after cost of capital is expected to be significantly below prior year. However, we still

    expect to earn a premium on our cost of capital.

    Assumptions 2016 GDP growth: +2.3% Growth in industrial production: +2.0% Growth in chemical production (excl. pharma): +3.4% Exchange rate: $1.10 per euro Oil price (Brent): $40 per barrel

    Outlook 2016 confirmed

  • BASF Capital Market Story, June 2016 14

    150 years

    EBIT before special items

    Million 2015 Forecast 2016

    Chemicals 2,156 considerable decreasePerformance Products 1,366 slight increaseFunctional Materials & Solutions 1,649 slight increaseAgricultural Solutions 1,090 slight increaseOil & Gas 1,366 considerable decreaseOther (888) considerable increase

    BASF Group 6,739 slight decrease

    Outlook 2016 Forecast by segment

    With respect to EBIT before special items, slight means a change of 1-10%, while considerable is used for changes greater than 11%. At prior-year level indicates no change (+/-0%).

  • BASF Capital Market Story, June 2016 15

    150 years

    Priorities 2016

    Focus on capex discipline:

    Reduce capital expenditures to 4.2 billion in 2016 Cost control and operational excellence:

    DrivE targeting ~1 billion annual earnings contributionfrom end of 2018 on

    Portfolio optimization ongoing:

    E.g. agreement to sell industrial coatings business to AkzoNobel Strong commitment to innovation:

    Maintain R&D spending at ~1.95 billion in 2016

  • BASF Capital Market Story, June 2016 16

    Q1 2016 reporting

    Business development

    Path forward: Our priorities

  • BASF Capital Market Story, June 2016 17

    150 years

    Components of growth

    * 2010, 2011 indicative, adjusted for IFRS 10 & 11

    59.6

    70.4+10.5 -1.4

    +2.6 -0.9

    20

    40

    60

    80

    2010 2015

    Volumes

    PricesFX M&A

    Sales* analysis 2010 2015 (in billion )

    (in billion ) Net sales 2010 Volumes Prices FX M&A Sales CAGR 2010 - 2015

    BASF Group w/o Oil & Gas 51.4

    +2.8 (+1.1% CAGR) -0.9 +2.6 +1.6 +2.3%

    Oil & Gas 8.2 +7.7 (+14.2% CAGR) -0.5 +0.0 -2.5 +9.6%

    3.4%

    CAGR

  • BASF Capital Market Story, June 2016 18

    150 years

    Steady earnings growth

    * 2010, 2011 indicative, adjusted for IFRS 10 & 11; 2001 2009 as reported, without non-compensable foreign income taxes on oil production

    EBIT and EBITDA*(in billion , 2001 - 2015)

    3.7

    4.7 4.6

    7.0 7.2

    8.48.9

    7.7

    6.5

    9.9

    11.2

    10.010.4

    11.010.6

    0

    2

    4

    6

    8

    10

    12

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015EBITEBITDA

    0.7

    2.2 2.2

    4.5 4.85.5 6.0

    4.6

    2.8

    6.7

    8.06.7 7.2

    7.6

    6.2

    CAGREBITDA

    7.9 %CAGREBIT

    16.6 %

  • BASF Capital Market Story, June 2016 19

    150 years

    50

    100

    150

    200

    250

    300

    350

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

    Strong track record in operational excellence

    EBITDA

    Sales

    * Excl. companies with major IFRS 10/11 restatements, i.e. BASF YPC Nanjing, Libya onshore, other Oil & Gas and Catalysts companies

    BASF Group* 20012015(Index; CAGR 20012015)

    Fixed Costs

    CAGREBITDA

    9%

    CAGRSales

    6%

    CAGRFixed Costs3%

  • BASF Capital Market Story, June 2016 20

    Q1 2016 reporting

    Business development

    Path forward: Our priorities

  • BASF Capital Market Story, June 2016 21

    150 years

    Grow sales and earnings faster than global chemical production, driven by

    Continued focus on innovations

    Capital expenditures

    Acquisitions

    Operational excellence and Verbund advantages

    Focus on cash generation / conversion

    Continue with our progressive dividend policy

    Focus on pruning our portfolio

    Maintain industry-leading position in sustainability

    The path forward: Our priorities

  • BASF Capital Market Story, June 2016 22

    150 years

    Managing volatility: BASF almost perfectly hedged on hydrocarbon price changesBASF production and consumption of oil and gas(in million boe, 2015)

    BASF hydrocarbon consumption almost equals hydrocarbon production

    Production of oil, liquids and gas Consumption of oil derivatives and gas

    153

    >100

    Naturalgas

    Oil and liquids

    Natural gas for energy and as raw material

    Naphtha and other oil-based raw materials

    40

    113

  • BASF Capital Market Story, June 2016 23

    150 years

    0

    100

    200

    300

    400

    500

    2001 2002 2003 2004 2005 2006* 2007* 2008 2009 2010 2011 2012restated

    2013 2014 2015

    EBITDA margin Chemicals / oil priceIndex 2001 = 100

    Chemicals with stable profitability, little correlation to oil price

    EBITDA margin Chemicals(as % of sales)

    Oil price

    * Without Catalysts (now part of Functional Materials & Solutions segment)

  • BASF Capital Market Story, June 2016 24

    150 years

    Functional crop care Personal care & food Omega-3 fatty acids Enzymes Battery materials Specialty plastics Selected assets in

    Oil & Gas

    BASFcore business

    Strong partnerships

    Gazprom Monsanto Petronas Shell Sinopec Statoil Total Yara

    Selected transactions 2010 until today

    Acquisitions

    ~ 4.5 billion salesin emerging and innovation-driven

    businesses

    Divestitures

    Styrenics Fertilizers Selected assets in Oil & Gas Natural gas trading & storage Custom synthesis business Industrial coatings Textile chemicals PP/PE catalysts

    ~ 20 billion sales*in businesses with

    limited fit and differentiation

    potential

    Portfolio development towards more market-driven and innovative businesses

    * Includes sales of non-consolidated businesses (Styrenics, VNG participation)

  • BASF Capital Market Story, June 2016 25

    150 years

    Strategic lever: Continuous portfolio development

    Specialties and solutions

    Differentiated commodities

    target(in % of sales*)

    ~ 50% ~ 50%

    Keep a balanced portfolio

    Divestment of businessese.g. due to loss of differentiation

    Divestment of businesses e.g. due to

    lower market attractiveness

    Commoditization leads to restructuring

    Growth fields

    Innovation pipeline

    Acquisitions

    * Excluding Oil & Gas sales

    Attractive markets Differentiation by process

    technologies and integration

    Attractive markets Differentiation by customer

    proximity and innovations

  • BASF Capital Market Story, June 2016 26

    150 years

    Provide a minimum return on investment of 8% p.a. after tax

    Are EPS accretive by year three at the latest

    Financial acquisition criteria

    Generate profitable growth above the industry average

    Are innovation-driven

    Offer a special value proposition to customers

    Reduce earnings cyclicality

    Strategic acquisition criteria

    We want to acquire businesses which

    Strategic lever: Acquisitions

  • BASF Capital Market Story, June 2016 27

    150 years

    Strategic lever:Capital expenditures

    Differentiated commodities With proprietary technology and/or Verbund advantages

    Focus on: emerging markets backward integration in the U.S. upgrading our asset base in Europe

    Specialties and solutions Incremental investments for new products Regional expansion of businesses

    Oil & Gas Focus investment budget by active portfolio optimization to secure free cash flow Keep reserve-to-production ratio of approx. 10 years

  • BASF Capital Market Story, June 2016 28

    150 years

    Investments for organic growth

    Performance Products16%

    Oil & Gas24%

    19.5billion

    FunctionalMaterials &Solutions12%

    Capex budget 2016-2020

    Other14%

    Chemicals30%

    Capex budget 2016-2020

    Asia Pacific18%

    19.5billion

    South America*9%

    North America26%

    Europe46%

    AgriculturalSolutions4%

    Other1%

    by segment by region

    * Including Africa and Middle East

  • BASF Capital Market Story, June 2016 29

    150 years

    Strategic lever: Innovations Allow for creativity

    Balance incremental und disruptive innovations

    Manage innovation pipeline efficiently on all levels

    Build on our global R&D Verbund

    Leverage external collaborations even more

    Align R&D activities with business models:

    Differentiated commodities Focus on improving processes and addressing raw material change Launch selected product innovations

    Specialties and solutions Develop new, tailored offerings in close collaboration with customers Pursue solution-oriented approach

    Keep annual R&D spending at ~3% of sales*

    * Without Oil & Gas

  • BASF Capital Market Story, June 2016 30

    150 years

    1.95 billion R&D expendituresin 2015; to be maintained in 2016

    ~10,000 employees in R&D

    ~3,000 projects

    Ranked No.1 in thePatent Asset Index

    ~1,000 new patents in 2015

    Research Verbund: Cooperations with more than 600 excellent partners from universities, start-upsand industry

    Strong commitment to innovationInnovations for a sustainable future

    Key facts

    1.61.7

    1.8 1.9 1.95

    0.0

    0.5

    1.0

    1.5

    2.0

    2011 2012 2013 2014 2015

    R&D expenditures (billion )

    Chemicals11%

    Performance Products20%

    Functional Mat. & Sol.20%

    Agricultural Solutions26%

    Oil & Gas2%

    Corporate Research21%

    2.0

    1.5

    1.0

    0.5

    0

  • BASF Capital Market Story, June 2016 31

    150 years

    Innovation: Green SenseConcrete for sustainable construction

    Envi

    ronm

    enta

    l Im

    pact

    High

    ReferenceConcrete

    High Low

    Low

    Total Cost of Ownership

    BASFs Green Sense Concrete system consists of:

    1) Innovative admixture products

    2) Concrete mix services

    3) Eco-efficiency analysis

    Replaces up to 70% of cement with recycled materials

    Superior eco-efficiency

    Applied in the construction of landmark projects, e.g. One World Trade Center, NYC

  • BASF Capital Market Story, June 2016 32

    150 years

    Innovation: Trilon MChelating agent for more sustainable detergents and cleaners

    Trilon M alternative to phosphate for automatic dish washing High sustainability performance: bio-degradable and

    eco-friendly Fast growing global market demand driven by

    regulatory changes and consumer demand 2010: Capacity expansion to 120,000 tons 2015: Start-up of a new Trilon M world-scale plant in

    Theodore, Alabama

    Compared with alternative chelating agents Trilon M Is readily bio-degradable Meets eco-label requirements Has better eco-toxicology profile Shows high performance

  • BASF Capital Market Story, June 2016 33

    150 years

    Innovation: SAVIVA Highly efficient Superabsorbent Polymers (SAP)

    SAVIVA based on a pioneering SAP technology platform SAVIVA the next generation of SAP Round-shaped particles with micro-pores initiates

    innovative liquid distribution mechanism

    Compared to other SAPs SAVIVA leads to: Efficiency gains:

    SAP reduction Fluff reduction Reduction of storage, packaging and transportation

    costs

    Improved sustainability: Better carbon footprint due to SAP and weight

    reduction Enabler for future diaper designs offering a new

    level of comfort and dryness

    SAVIVA round shaped particle

  • BASF Capital Market Story, June 2016 34

    150 years

    Lower production cost than industry average

    Efficiency gains:

    run-time extension higher throughput lower energy consumption

    Proprietary technology,new process protected by280 active patent families

    4 out of 6 production sites already equipped: Ludwigs-hafen, Antwerp, Nanjing and Camaari (Brazil)

    Innovation: New acrylic acid technologyBASF with best-in-class acrylic acid process

    80

    85

    90

    95

    100

    BASFnew process

    BASFclassic process

    Industry average

    Acrylic acid production technology benchmark(Industry average costs = 100; normalized)

    Key facts

    Source: BASF estimate

  • BASF Capital Market Story, June 2016 35

    150 years

    InnovationAutomotive is a growth business for BASF

    * Excl. precious metals, coatings refinish business;

    BASF sales to Automotive vs. global vehicle production(indexed)

    50%

    75%

    100%

    125%

    150%

    175%

    2007 2008 2009 2010 2011 2012 2013 2014 2015

    BASF salesto Automotive

    CAGR

    6.7%

    Global vehicleproduction

    CAGR shown for 2007 2015

    CAGR

    2.8%

  • BASF Capital Market Story, June 2016 36

    150 years

    0

    50

    100

    150

    BASF Competitors

    FWCCombines functionality of a 3-way conversion catalyst with integrated filter on a ceramic substrate

    Reduces gaseous emissionsPrecious metal-based catalytic coating removes exhaust gases from engine emissions**

    Removes particulatesFilters & combusts particulates

    Complies with emissions limitsHelps automakers meet new Euro 6c regulatory standards

    FWC introduced in 2013 Sustains BASFs leading technology position

    Leading position: Global mobile emissions catalysts patents*

    * 2009 2013 ** Hydrocarbons, carbon monoxide, nitrogen oxides *** https://www.basf.com/en/company/news-and-media/science-around-us/catalytic-converter.html

    FWC reduces emission of gaseous pollutants and particulates

    HC

    CO

    NOx

    N2

    H2O

    CO2

    Particulates

    Innovation: Four-Way Conversion Catalyst (FWC)

  • BASF Capital Market Story, June 2016 37

    150 years

    2.2% 0.2%

    Novel methodology to screen and steer our portfolio*

    26.6% Accelerators: outgrow their markets

    by 2-10% deliver margins >10%

    above the average represent >60% of BASFs

    R&D pipeline 71% Performers

  • BASF Capital Market Story, June 2016 38

    150 years

    0

    1,000

    2,000

    3,000

    4,000

    2015 2018

    Annual earnings contribution(in million )

    Targeted annual earnings contribution of 1 billion from end of 2018 on

    Optimization of processes and structures in all regions, e.g. manufacturing incremental capacities productivity increase

    Project timeline: 20162018

    DrivE program

    Strategic lever: Operational excellenceDrivE with ~1 bn earnings contribution

    NEXT 2008-2011 DrivE 2016-2018

    STEP 2012-2015

    Diagramm1

    2015100013002015

    2018100013001000

    Sheet1!#REF!

    NEXT

    STEP

    NewPro

    Sheet1

    201420152018

    NEXT100010001000

    STEP100013001300

    NewPro1000

  • BASF Capital Market Story, June 2016 39

    150 years

    Profitability of BASF will grow faster than global chemical production

    Sales growthSlightly faster than the global chemical production

    EBITDA growthWell above global chemical production

    Remain a strong cash providerContinuously generate high levels of free cash flow

    Financial targets for next years

    Deliver attractive returnsEarn a significant premium on cost of capital

    Progressive dividend policy We want to grow or at least maintain our dividend

  • BASF Capital Market Story, June 2016 40

    Appendix I Q1 2016 reporting

  • BASF Capital Market Story, June 2016 41

    150 years

    Sales development Volumes Prices Portfolio Currencies

    Q1 2016 vs. Q1 2015 (3%) (16%) 0% 0%

    Intermediates646(12%)

    Monomers1,307(18%)

    Petrochemicals1,196(22%)

    3,149(19%)

    EBIT before special items million

    726

    548633

    249

    465

    0

    200

    400

    600

    800

    Q1 Q2 Q3 Q4 Q1

    20162015

    Sales Q1 2016 vs. Q1 2015million

    ChemicalsLower margins and higher fixed costs result in considerably decreased earnings

    Diagramm1

    726

    548

    633

    249

    465

    EBIT bSI

    Sheet1

    Q1Q2Q3Q4Q1

    EBIT bSI726548633249465

  • BASF Capital Market Story, June 2016 42

    150 years

    Sales development Volumes Prices Portfolio Currencies

    Q1 2016 vs. Q1 2015 1% (4%) (2%) (1%)

    Performance Chemicals955(10%)

    Performance ProductsIncrease in earnings by 6%, supported by successful restructuring

    CareChemicals

    1,204(7%)

    3,783(6%)Nutrition

    & Health488(5%)

    Dispersions& Pigments

    1,136(2%)

    515

    304 319228

    547

    0

    200

    400

    600

    Q1 Q2 Q3 Q4 Q1

    Sales Q1 2016 vs. Q1 2015million

    EBIT before special items million

    20162015

    Diagramm1

    515

    304

    319

    228

    547

    EBIT bSI

    Sheet1

    Q1Q2Q3Q4Q1

    EBIT bSI515304319228547

  • BASF Capital Market Story, June 2016 43

    150 years

    Catalysts1,467(8%)

    Coatings738(6%)

    4,408(4%)

    Performance Materials1,670(2%)

    431 458371 389

    456

    0

    200

    400

    600

    Q1 Q2 Q3 Q4 Q1

    Sales development Volumes Prices Portfolio Currencies

    Q1 2016 vs. Q1 2015 5% (7%) 0% (2%)

    EBIT before special items million

    20162015

    ConstructionChemicals

    533+6%

    Functional Materials & SolutionsGood demand from the automotive and construction industries

    Sales Q1 2016 vs. Q1 2015million

    Diagramm1

    431

    458

    371

    389

    456

    EBIT bSI

    Sheet1

    Q1Q2Q3Q4Q1

    EBIT bSI431458371389456

  • BASF Capital Market Story, June 2016 44

    150 years

    1,898 1,780

    0

    1,000

    2,000

    Q1 Q1

    Sales development Volumes Prices Portfolio Currencies

    Q1 2016 vs. Q1 2015 (5%) 2% 0% (3%)

    2016201520162015

    (6%)574 591

    0

    200

    400

    600

    Q1 Q1

    +3%

    Agricultural SolutionsSlight earnings increase in a challenging market environment

    Salesmillion

    EBIT before special itemsmillion

  • BASF Capital Market Story, June 2016 45

    150 years

    Sales development Volumes Prices/Currencies Portfolio

    Q1 2016 vs. Q1 2015 2% (4%) (86%)

    Oil & GasSignificantly lower sales and earnings

    4,249

    744

    6110

    1,000

    2,000

    3,000

    4,000

    5,000

    Q1 Q120162015

    * Including transportation business

    161359

    47

    276

    66

    -100

    100

    300

    500

    EBIT bSI Net income EBIT bSI Net income

    Natural Gas TradingExploration & Production

    437

    276

    EBIT before special items, net incomemillion

    Salesmillion

    *

    20162015Q1 Q1

    (88%)

    Natural Gas TradingExploration & Production

    4,993

    *

    * Including transportation business

    Diagramm1

    161276EBIT bSI

    359Net incomeNet income

    066EBIT bSI

    47Net incomeNet income

    Natural Gas Trading

    Exploration & Production

    47

    Sheet1

    EBIT bSINet incomeEBIT bSINet income

    Natural Gas Trading161359047

    Exploration & Production27666

  • BASF Capital Market Story, June 2016 46

    150 years

    Review of Other

    million Q1 2016 Q1 2015

    Sales 477 688

    EBIT before special items (219) (613)

    Thereof Corporate research costs (99) (101)

    Costs of corporate headquarters (55) (55)

    Foreign currency results, hedging andother measurement effects 68 (382)

    Other businesses 18 35

    Special items (26) (82)

    EBIT (245) (695)

  • BASF Capital Market Story, June 2016 47

    150 years

    Cash flow Q1 2016

    million Q1 2016 Q1 2015

    Cash provided by operating activities 1,046 2,390Thereof changes in net working capital (1,248) 309

    miscellaneous items (39) 5Cash used in investing activities (1,258) (1,502)Thereof payments related to tangible / intangible assets (1,001) (1,278)

    acquisitions / divestitures 0 26

    Cash used in / provided by financing activities 1,997 (400)

    Thereof changes in financial liabilities 1,996 (299)dividends (4) (101)

  • BASF Capital Market Story, June 2016 48

    150 years

    Dec 312015

    Mar 312016

    3.1 3.8

    Balance sheet remains strongBalance sheet March 31, 2016 vs. December 31, 2015 billion

    Liquid funds

    Accountsreceivable

    Long-termassets

    9.5

    Otherliabilities

    Financialdebt

    Stockholdersequity

    Inventories

    Other assets

    9.7

    2.2

    10.7

    9.6

    4.0

    27.8

    20.9

    1.3

    28.4

    22.4

    2.0

    15.114.4

    46.3

    70.873.7

    45.6

    Dec 312015

    Mar 312016

    70.8 73.7

    24.1

    15.2

    31.5

    26.0

    16.8

    30.9

    Total assets increased by2.9 billion, mainly due to higher cash position and seasonally-driven increase in accounts receivable

    Long-term assets slightly lower caused by currency effects

    Provisions for pension obligations increased by2.0 billion as a result oflower interest rates

    Net debt slightly declined to 12.8 billion

    Equity ratio: 42%

  • BASF Capital Market Story, June 2016 49

    150 years

    Slide Number 1Cautionary note regarding forward-looking statements BASF Share informationWe create chemistry for a sustainable futureBASF today a well-balanced portfolioTotal sales 2015: 70.4 billionVerbund: Unique competitive advantageStrong free cash flowSlide Number 8Slide Number 9Slide Number 10Q1 2016: BASF with slightly lower earnings compared to strong prior-year quarterSlide Number 12Slide Number 13Slide Number 14Priorities 2016Slide Number 16Components of growthSteady earnings growthStrong track record in operational excellence Slide Number 20The path forward: Our prioritiesManaging volatility: BASF almost perfectly hedged on hydrocarbon price changesChemicals with stable profitability, little correlation to oil pricePortfolio development towards more market-driven and innovative businessesStrategic lever: Continuous portfolio development Strategic lever: Acquisitions Strategic lever:Capital expendituresInvestments for organic growthStrategic lever: Innovations Slide Number 30Innovation: Green Sense Concrete for sustainable constructionInnovation: Trilon MChelating agent for more sustainable detergents and cleanersInnovation: SAVIVA Highly efficient Superabsorbent Polymers (SAP) Slide Number 34Innovation Automotive is a growth business for BASF Slide Number 36Strategic lever: Sustainability Sustainable Solution SteeringStrategic lever: Operational excellenceDrivE with ~1 bn earnings contributionProfitability of BASF will grow faster than global chemical productionSlide Number 40ChemicalsLower margins and higher fixed costs result in considerably decreased earnings Performance ProductsIncrease in earnings by 6%, supported by successful restructuringFunctional Materials & SolutionsGood demand from the automotive and construction industriesAgricultural SolutionsSlight earnings increase in a challenging market environmentSlide Number 45Review of Other Cash flow Q1 2016Balance sheet remains strongSlide Number 49