charts basf analyst conference q2 2012
DESCRIPTION
Charts accompanying the 2Q2012 Conference Call for investors and analysts on July 26, 2012TRANSCRIPT
BASF 2nd Quarter 2012 Analyst Conference Call 1
BASF shows solid development
Second Quarter 2012 Financial highlights July 26, 2012
BASF 2nd Quarter 2012 Analyst Conference Call 2
This presentation includes 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. This presentation contains a number of forward-looking statements including, 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 with respect to future events and financial performance. Actual financial performance of the entities described herein 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.
Forward-looking statements represent estimates and assumptions only as of the date that they were made. 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.
Forward-looking statements
BASF 2nd Quarter 2012 Analyst Conference Call 3
Sales €19.5 billion +6% EBITDA €3.1 billion +4% EBIT before special items €2.5 billion +11% EBIT €2.2 billion +1%
Net income €1.2 billion (15%) EPS €1.34 (16%) Adjusted EPS €1.60 (9%)
Business performance Q2’12 vs. Q2’11
BASF shows solid development Second quarter 2012 highlights
New second quarter record for sales and earnings in Agricultural Solutions Oil & Gas outperformed mainly due to the resumption of oil production in Libya Demand in chemical businesses did not match the strong previous year level Weaker than expected demand in China Overall sales and earnings in H1 2012 came in above H1 2011
BASF 2nd Quarter 2012 Analyst Conference Call 4
Important milestones in Q2 2012
BASF acquired Mazzaferro‘s polyamide polymer business Production of PA 6 and
compounds in Brazil Further strengthening position in
engineering plastics and PA polymers in South America Polymerization plant with a
capacity of 20,000 metric tons
BASF to invest in new chemical production site in Dahej, India Investment of €150 million Production facilities for
polyurethanes, care chemicals, polymer dispersions for coatings and paper Production startup: 2014
Investments in emerging markets
Active portfolio management
BASF acquired Novolyte Technologies Novolyte’s energy storage
activities focused on developing, producing and marketing performance electrolyte formulations BASF now becomes global
supplier of lithium-ion battery electrolyte formulations
Strengthening of technology platform
BASF 2nd Quarter 2012 Analyst Conference Call 5
Outlook 2012 confirmed
For the FY 2012, BASF aims to exceed the record levels of sales and EBIT before special items achieved in 2011
BASF will strive again to earn a high premium on cost of capital
Chemical businesses:
• Given the weak demand outlook, we expect volumes to be flat in H2 2012 vs. H1 2012
• In 2012, EBIT before special items is expected to come in below the level of 2011
Outlook 2012
GDP: +2.3% (before: 2.7%)
Industrial production: +3.4% (before: 4.1%)
Chemical production: +3.5% (before: 4.1%)
US$/Euro: 1.30 (unchanged)
Oil price (US$/bbl): 110 (unchanged)
Revised assumptions 2012
BASF 2nd Quarter 2012 Analyst Conference Call 6
Chemicals Earnings impacted by weaker margins throughout the portfolio
Intermediates 763 +10%
Inorganics 426 +21%
Petrochemicals 2,159 (8%)
€3,348 -1%
674621
381467 436
0
200
400
600
800
Q2 Q3 Q4 Q1 Q2
EBIT before special items (million €)
2012 2011
Q2’12 segment sales (million €) vs. Q2’11
Sales development Period Volumes Prices Portfolio Currencies
Q2’12 vs. Q2’11 (14%) (2%) 10% 5%
BASF 2nd Quarter 2012 Analyst Conference Call 7
Plastics Sequential earnings improvement in challenging environment
Polyurethanes 1,580 +5%
Performance Polymers
1,298 (2%)
€2,878+2%
Sales development Period Volumes Prices Portfolio Currencies
Q2’12 vs. Q2’11 (5%) 0% 1% 6%
Q2’12 segment sales (million €) vs. Q2’11
383
317
110
219256
0
200
400
Q2 Q3 Q4 Q1 Q2
EBIT before special items (million €)
2012 2011
BASF 2nd Quarter 2012 Analyst Conference Call 8
Performance Products Higher prices could not fully compensate weak demand vs.Q2 ‘11
Performance Chemicals
944 +4%
Care Chemicals 1,237 (9%)
€4,122 +1%
Paper Chemicals 427 +2%
Q2’12 segment sales (million €) vs. Q2’11
Nutrition & Health 509 +6% Dispersions
& Pigments 1,005 +7%
513440
220
452 446
0
200
400
600
Q2 Q3 Q4 Q1 Q2
EBIT before special items (million €)
Sales development Period Volumes Prices Portfolio Currencies
Q2’12 vs. Q2’11 (5%) 1% 0% 5%
2012 2011
BASF 2nd Quarter 2012 Analyst Conference Call 9
Functional Solutions Demand from the automotive industry remained strong
Catalysts 1,620 +8%
Construction Chemicals
621 +8%
Coatings 733
+6%
€2,974 +8%
Q2’12 segment sales (million €) vs. Q2’11
167 162
88
148134
0
50
100
150
200
Q2 Q3 Q4 Q1 Q2
EBIT before special items (million €)
Sales development Period Volumes Prices Portfolio Currencies
Q2’12 vs. Q2’11 0% (1%) 3% 6%
2012 2011
BASF 2nd Quarter 2012 Analyst Conference Call 10
Agricultural Solutions Record Q2 sales and earnings driven by strong demand
Q2’12 segment sales (million €) vs. Q2’11 EBIT before special items (million €)
2012 2011
0
200
400
Q2 Q2
2012 2011
0
500
1.000
Q2 Q2
1,467
Sales development Period Volumes Prices Portfolio Currencies
Q2’12 vs. Q2’11 14% 2% 0% 6%
414 331
1,205
BASF 2nd Quarter 2012 Analyst Conference Call 11
Oil & Gas Strong growth supported by oil production in Libya
Exploration & Production 1,251 +122%
Natural Gas Trading
2,334 +23%
€3,585 +46%
Q2’12 segment sales (million €) vs. Q2’11 EBIT bSI/Net income (million €)
63257
87 213269
0
200
400
600
800
1,000
Q2/2011 Q2/2012
880
Natural Gas Trading
Exploration & Production
Net income
Non compensable oil taxes (Q2 2011: €0 million; Q2 2012: €445 million)
332
793
Sales development Period Volumes Prices/Currencies Portfolio
Q2’12 vs. Q2’11 31% 14% 1%
BASF 2nd Quarter 2012 Analyst Conference Call 12
Review of “Other”
Million € Q2 2012 Q2 2011 Sales 1,107 1,714 thereof Styrenics - 811
EBIT before special items (76) (163) thereof Corporate research Group corporate costs Currency results, hedges and other valuation effects Styrenics, fertilizers, other businesses
(95) (61)
52
13
(87) (59)
(118)
76
Special items (116) 27
EBIT (192) (136)
BASF 2nd Quarter 2012 Analyst Conference Call 13
Strong operating cash flow at €3.5 billion
Million € H1 2012 H1 2011 Cash provided by operating activities 3,460 3,038 thereof Changes in net working capital (651) (1,178)
Cash provided by investing activities (1,084) 81 thereof Payments related to tangible / intangible assets (1,669) (1,265) thereof Acquisitions / divestitures 430 32 Cash used in financing activities (2,198) (2,764) thereof Changes in financial liabilities Dividends
269 (2,462)
(486) (2,278)
Increase in net working capital by €0.7 billion Free cash flow amounted to €1.8 billion Dividend payments to BASF SE shareholders €2.3 billion Net debt decreased by €0.7 billion to €11.5 billion in comparison to H1 2011
First half 2012
BASF 2nd Quarter 2012 Analyst Conference Call 14
BASF 2nd Quarter 2012 Analyst Conference Call
Sales and EBIT before special items by location of company; in million EUR; changes in comparison to Q2 2011
57%
Regional sales and earnings Q2 2012
18% 5%
19% Sales
BASF Group 19.481
Europe
Asia Pacific
South America, Africa, Middle East
North America Sales 11.146 EBIT bSI 1.877
Sales 3.589 EBIT bSI 229
Sales 979 EBIT bSI 54
Sales 3.767 EBIT bSI 330
+9% +33%
+9% -20%
-5% -28%
+1% -36%