for the automotive industry - basf.com · Battery materials, coolants, heat management, NVH solutions, lightweight structural ... We innovate continuously to meet the automotive industry’s

Chemistry-driven innovation for the automotive industryDr. Stephan Kothrade President, Greater China and Functions Asia Pacific Tokyo, March 1, 2018

March 20182 | International Auto Conference Tokyo

Cautionary note regarding forward-looking statements

This presentation contains forward-looking statements. These statements are based oncurrent estimates and projections of the Board of Executive Directors and currently availableinformation. Forward-looking statements are not guarantees of the future developments andresults outlined therein. These are dependent on a number of factors; they involve variousrisks and uncertainties; and they are based on assumptions that may not prove to beaccurate. Such risk factors include those discussed in the Opportunities and Risks Reportfrom pages 111 to 118 of the BASF Report 2017. BASF does not assume any obligation toupdate the forward-looking statements contained in this presentation above and beyond thelegal requirements.


Agenda

1 BASF at a glance

Trends, challenges and opportunities2

BASF as supplier to the automotive industry3


Chemicals – a growth industryGlobal annual growth rate of ~3.4%*

…more food needed by 2050

…more primary energy consumption by 2050

…of the world population will live in cities by 2050

Agriculture Health & Nutrition

Energy & Resources

TransportationConstruction & Housing

Consumer Goods

…people by 2050

Electrical & Electronics

Chemistry as enabler to meet current and future needs

70% 50%~10 bn 30%

* Forecast average annual real change 2018–2020; BASF Report 2017, p. 121


BASF has global market access through regional presence

Kuantan

Hong KongNanjing

Freeport

Florham Park

Geismar

LudwigshafenAntwerp

São Paulo

Regional centersSelected sitesVerbund sitesSelected research and development sites

Asia Pacific

South America, Africa, Middle East

North AmericaSales €15,357 millionEBIT €1,236 millionEmployees 18,295

Sales €14,343 millionEBIT €2,209 millionEmployees 18,256

Sales €5,561 millionEBIT €335 millionEmployees 7,286

2017: Sales by location of customer; EBIT by location of company

EuropeSales €29,214 millionEBIT €4,742 millionEmployees 71,653


Crop ProtectionEBITDA €2.3 billion

Our broad and resilient portfolio caters to multiple industries2017: Sales of €64.5 billion; EBITDA of €12.7 billionPercentage of sales 2017*

Dispersions & Pigments

Care Chemicals Nutrition & Health Performance

Chemicals

Functional Materials & Solutions

Catalysts Construction Chemicals Coatings Performance Materials

EBITDA €5.4 billion Petrochemicals Monomers Intermediates

25 %

Performance Products

25 %

Oil & Gas

Exploration & Production; Natural Gas Transport

5 %

Agricultural Solutions

9 %

Chemicals

EBITDA €1.3 billionEBITDA €2.4 billion EBITDA €2.1 billion

* Not depicted here: ‘Other’ 4% of BASF Group sales and EBITDA of €(679) million


Agenda

BASF at a glance1




Past 2020

Marketing towards mass consumers

New value chains will be established

Broad portfolio of electric vehicles

Starting now

Selected BEV for early adopters, focused on some brands (e.g. Tesla, Renault, BYD)

Exists today

ElectrificationPast pilot stage but before mass consumer acceptanceDrivers Regulation on CO2 emissions Regulation on other emissions Geo-political considerations

Requirements Improved vehicle range Investments into battery

production Reduced battery cost Charging infrastructure

Impacts Mass demand New value chains

Opportunities for BASF Battery materials, coolants, heat management, NVH solutions, lightweight structural materials


Past 2030

Mass roll-out and consumer adoption

Finalization of sensors Legal and regulatory

changes

Barely started

(“Outside” of auto industry)

Human supervised autopilots

Pilot projects today

Assisted driving

Exists today

Autonomous driving Adoption is conditioned by regulation, technology and infrastructure Drivers Convenience and access Cost advantage Optimized traffic Safety

Requirements Technology Local infrastructure Regulation, legal/ethical

framework, data security

Impacts Managed mobility New vehicle concepts Enabler for increased shared

mobility

Opportunities for BASF Advanced materials and systems for electronic components, materials for new interior concepts


Car sharingLimited impact today, high potential with autonomous drivingDrivers Convenience and access Cost advantage Safety

Requirements Decrease in cost per driven

kilometer Optimized mobility

management

Impacts Change in consumer

preference and ownership Change in vehicle

configurations and production numbers

Opportunities for BASF Materials for new interior surfaces, other advanced materials and systems

Development of concepts alongside adoption of autonomous driving

Mid to long term

Car sharing concepts with limited impact on number of vehicles produced, or their configuration

Today


Agenda

BASF at a glance1




Rank Company Sales (in $ billion)

1 Bosch 46.5

2 ZF Friedrichshafen 38.5

3 Magna 36.4

…

21 10.4

…

89 Dow Automotive 1.7

Top suppliers to the automotive industry 2016

BASF is the largest chemicals supplier to the automotive industry

Source: Automotive News, June 26, 2017


We innovate continuously, to meet evolving industry requirements

Emission reduction

Comfort and safety

Design

Alternative powertrainsHeat management Emission control

Weight reduction

Soft-touch valureTM Engineering plastics and polyurethanes

Fuel additives and lubricant oils

Integrated processes

NVH solution Cellasto® Infra-red-reflective film Battery materials FWCTM catalyst

Energy saving


BASF has multiple touchpoints to OEMs and tier-suppliers

Industry structure* BASF products

Engineering plastics Coatings Coolants and brake fluids Fuel additives and lubricants

Catalysts Engineering plastics Coatings (car parts) Battery materials

Engineering plastics Catalysts Coatings (car parts) Pigments

Engineering plastics Pigments Solvents

Refinish coatings Coolants and brake fluids Fuel additives and lubricants

Component supplierTier-2

Parts supplierTier-3+

Module/system supplierTier-1

OEM

* Based on business model, not real supply chain ** Includes Precious Metals

BASF Group sales 2017

Automotivedrivensales**

€11.4 bn

~10%

~60%

~30%

Aftermarket

€64.5 bn

#1 Chemical automotive supplier


Golf 7

We develop light-weight materials for heavy tasks

Lightweight

Loweremissions

Full electric BMW i3

Higher energy efficiency

First all-plastic front end

carrier

Self-supporting rear seat shell made of the

polyurethane Elastolit®


We help to improve air quality with our innovative catalyst solutions

Three-way catalyst

Four-way catalyst

BASF’s TWC* catalyst technology features a patented construction of precious metals (e.g. platinum, palladium, rhodium) that enables it to significantly outperform conventional TWC catalysts in the oxidation of hydrocarbons and carbon monoxide

BASF’s single-component FWCTM** technology can remove particulate matter, as well as carbon monoxide nitrogen oxides from gasoline-engine exhaust, helping automakers meet strict new emissions regulations including Euro 6

* TWC: three-way conversion ** FWC: four-way conversion


We improve driving experience and comfort with our Cellasto® noise vibration and harshness (NVH) solutions

Properties of Cellasto®:

High compressibility

Light-weight

High characteristic flexibility by density

Noise isolation

Damping of high load impacts

High performance: durability and quality

High degree of design freedom

High frequency isolation


We pursue holistic heat management solutions to reduce cabin heat loads

Near infra-red (NIR) reflective polymer film for glazing Polymer foams for

thermal insulation

Functional pigmentsfor exterior and interior


We capture the fast-growing battery materials market

Market projections for 2025: 8-15 million electric vehicles* built per year 600-900 kt of CAM in e-mobility€18-24 billion CAM market size

Unparalleled access and commitment to the automotive industry Strategic global supply, technology and production partnerships

Rapid expansion to global, cost-competitive asset footprint

Well-established position in key CAM technologies (NCA & NCM)** Industry leading position in NCA capacity

E-mobility drives battery materials growth

Chemistry of cathode active materials (CAM) is key to

address e-mobility challenges

**NCA: nickel cobalt aluminum oxide; NCM: nickel cobalt manganese

BASF enables electromobility

*Electric vehicles: BEV, HEV and PHEV

20252017

~15-20% p.a.

Li-ion batterymarket


We are a key supplier in battery materials, well-positioned for further growth

Shanghai, ChinaR&D, Application Technology Center

Onoda/Kitakyushu, JapanBASF TODA Battery Materials

Beachwood, OhioR&D, ApplicationTechnology Center

Elyria, OhioBASF TODA America

Europe, planned production

Amagasaki, JapanR&D, Application Technology Center

Battle Creek, MichiganBASF TODA America*

Shanghai, China BASF Battery Materials Headquarters

Production siteTechnology center

Ludwigshafen, GermanyR&D, ApplicationTechnology Center

Innovation in battery materials Leading technology portfolio and core patents ~€250 million total R&D spent so far ~150 scientists at four R&D centers across all regions Highest energy density CAM commercialized for EV application

* BASF TODA America: pending closing

Market presence Triple-digit-million euro battery material sales Supplier to world’s largest cell producers Already supplying leading OEMs’ platforms Under qualification for future key platforms


Our innovative materials enable more freedom for individual design

valure™ Unique transfer coating technology Can be applied on leather and other

natural or synthetic substrates Imparts limitless design options along

with soft and breathable surfaces


Success factors: identifying market trends, close interaction with customers and enhanced capabilities

We address specific market needs

* LASD: liquid applied sound damping

Emissions catalysts systemBASF solution: Advanced EMPRO™ emission catalyst

Key contributions: Reduced use of precious metals; meets new regulations

Waterborne coating system for minivansBASF solution: Coating system with differentiated performance

Key contributions: Lean portfolio combining mono-coat and integrated paint systems

Sound reduction for chassisBASF solution: LASD*

emulsions applied to chassis

Key contributions: Long lasting sound reduction


Key Takeaways BASF is the leading chemical supplier to the automotive industry

Our global reach enables us to forge long-term collaborations with leading industry players and to develop solutions for many of their challenges

We innovate continuously to meet the automotive industry’s evolving requirements for materials

We invest in technologies that shape the future

Documents

for the automotive industry - basf.com · Battery materials, coolants, heat management, NVH solutions, lightweight structural ... We innovate continuously to meet the automotive industry’s