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Charts accompanying the FY2011 Analyst Conference for investors and analysts on February 24, 2012
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BASF 4Q/FY’2010 Conference | February 24th, 2011
BASF: Fit for 2012 and beyond 4Q/FY’2011 Analyst Conference Ludwigshafen, February 24, 2012
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
3
Highlights 2011
Outlook 2012
Financials Q4 2011
1
2
3
Agenda
4
Record year 2011
Business performance Q4’11 vs. Q4’10 FY’11 vs. FY’10 Sales €18.1 billion +10% €73.5 billion +15% EBITDA €2.9 billion +7% €12.0 billion +8% EBIT before special items €1.5 billion -14% €8.4 billion +4% EBIT €1.9 billion +15% €8.6 billion +11% Net income €1.1 billion +3% €6.2 billion +36% Reported EPS €1.23 +3% €6.74 +36% Adjusted EPS €1.05 -24% €6.26 +9% Operating cash flow €2.1 billion +80% €7.1 billion +10%
Sales development Period Volumes Prices Portfolio Currencies
Q4’11 vs. Q4’10 (1)% 9% 2% 0%
FY’11 vs. FY’10 0% 12% 5% (2)%
5
Major achievements in 2011
Investments: Start-up of Nanjing expansion Commissioning of Nord Stream and the OPAL pipeline
Portfolio management: Completion of Cognis integration Start of business of Styrolution JV with Ineos Divestiture of K+S shares and agreement to sell fertilizer assets (Antwerp)
Operational excellence: Completion of NEXT program – annual earnings contribution of more than
€1 billion as of 2012
Strong and profitable growth in emerging markets
0
20
40
60
2001
28 Developed markets*
Emerging markets
* BASF definition: Developed markets include EU15, Norway, Switzerland, North America, Japan, Australia, New Zealand
22%
Sales BASF Group excluding Oil & Gas in billion € by location of customer
2011
34%
61
6
7
€2.6 billion premium on cost of capital achieved in 2011 Premium on cost of capital in billion €
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
4,000
3,000
2,000
1,000
0
-0.6 -0.6
2.0 2.4
2.1
2.9
1.6
-0.2
3.5
2.6
Target first established
Cost of capital rate: 9% 11%
8
Average annual dividend increase of 15.2% (2002-2011)
Attractive dividend yield of 4.6% in 2011**
Dividend yield above 3% in any given year since 2002
3.9%
Attractive shareholder returns
Key facts Dividend per share (€)
0.70 0.700.85
1.00
1.50
1.95 1.951.70
2.202.50
0.0
0.5
1.0
1.5
2.0
2.5
2002 2005 2008 2011
0.50
1.00
1.50
2.00
3.1%
* Dividend yield based on share price at year-end
3.2% 3.1% 4.1% 3.8% 7.0% Yield*
** Based on BASF share price of €53.89 on Dec 30, 2011
Proposal:
3.7%
2.50
3.9% 4.6%
9
Delivering consistent, long-term value
Long-term performance January 2002 – December 2011 (average annual performance with dividends reinvested)
+7.2%
-1.9%
+14.1%
-3 0 3 6 9 12 15
BASF
Euro Stoxx 50
DAX 30
MSCI World Chemicals
+1.3%
Last 5 years
+12.5%
–7.4%
–2.2%
+2.4%
10
Highlights 2011
Outlook 2012
1
2
Agenda
Financials Q4 2011 3
11
Outlook 2012 Expectations for global economy
2011
GDP 2.7%
Chemicals (excl. Pharma) 4.8%
Industrial production 4.7%
US$ / Euro 1.39
Oil price (US$ / bbl) 111
Forecast 2012
2.7%
4.1%
4.1%
1.30
110
12
Outlook 2012 by region Chemical production (excl. pharma)
EU-27
USA
Asia (excl. Japan)
Japan
South America
4.1%
0.8%
2.2%
8.0%
3.4%
3.9%
World 4.8%
1.6%
2.1%
11.1%
-3.1%
4.7%
2011 Forecast 2012
13
Outlook BASF Group 2012
BASF Group aims to exceed the record levels of sales and EBIT before special items achieved in 2011.
In H1 2012, BASF will most likely not achieve the exceptionally high results of the comparable period in 2011. However, we aim to outperform H2 2011.
More specifically, we plan to increase sales and earnings in all our business segments with the exception of the segment Chemicals.
In 2012, BASF will strive to earn again a high premium on cost of capital.
14
Highlights 2011
Outlook 2012
1
2
Agenda
Financials Q4 2011 3
15
Chemicals Price increases could not compensate for lower volumes
Intermediates 631 -4%
Inorganics 355
+9%
Petrochemicals 2,136 +9%
€3,122 +6%
537
381
0
200
400
600
Q4 '10 Q4 '11
Sales development Period Volumes Prices Portfolio Currencies
Q4’11 vs. Q4’10 (8)% 7% 6% 1%
FY’11 vs. FY’10 (1)% 16% 2% (3)%
Q4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €)
2,4412,302
0
1,000
2,000
FY '10 FY '11
16
Plastics Weaker demand led to receding margins
Polyurethanes 1,395 +2%
Performance Polymers
1,178 +8%
€2,573+5%
Sales development Period Volumes Prices Portfolio Currencies
Q4’11 vs. Q4’10 (3)% 6% 1% 1%
FY’11 vs. FY’10 4% 10% 0% (2)%
Q4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €)
285
110
0
100
200
300
Q4 '10 Q4 '11
1,2031,284
0
400
800
1.200
FY '10 FY '11
17
Sales development Period Volumes Prices Portfolio Currencies
Q4’11 vs. Q4’10 (6)% 6% 19% 0%
FY’11 vs. FY’10 (1)% 6% 25% (2)%
Performance Products Earnings burdened by destocking and integration costs
Performance Chemicals
822 +6%
Care Chemicals 1,180 +55%
€3,629 +19%
Paper Chemicals 390 -4%
Q4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €)
Nutrition & Health 442 +15%
Dispersions & Pigments
795 +9%
294
220
0
100
200
300
Q4 '10 Q4 '11
1,7271,554
0
500
1,000
1,500
2,000
FY '10 FY '11
18
Sales development Period Volumes Prices Portfolio Currencies
Q4’11 vs. Q4’10 6% 8% (1)% (1)%
FY’11 vs. FY’10 9% 10% 1% (3)%
Functional Solutions Continuous strong earnings improvement
Catalysts 1,595 +17%
Construction Chemicals 536
+4%
Coatings 739
+8%
€2,870+12%
Q4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €)
33
88
0
20
40
60
80
100
Q4 '10 Q4 '11
467
559
0
200
400
600
FY '10 FY '11
19
Agricultural Solutions Another record year for Crop Protection
Q4’11 segment sales (million €) vs. Q4’10 EBIT before special items (million €)
0
200
400
600
800
1,000
Q4 Q42011 2010
Sales development Period Volumes Prices Portfolio Currencies
Q4’11 vs. Q4’10 (5)% 2% 0% 0%
FY’11 vs. FY’10 6% 0% 0% (3)%
845 822 42 41
0
10
20
30
40
50
Q4 '10 Q4 '11
749810
0
300
600
900
FY '10 FY '11
20
Oil & Gas Higher oil prices improved sales and net income
Exploration & Production 1,017 -4%
Natural Gas Trading
2,923 +53%
€3,940 +33%
Sales development Period Volumes Prices/Currencies Portfolio Q4’11 vs. Q4’10 7% 25% 1%
FY’11 vs. FY’10 (11)% 23% 0%
EBIT bSI Natural Gas Trading EBIT bSI Exploration & Production
Net income
Q4’11 segment sales (million €) vs. Q4’10 EBIT before special items / Net income (million €)
564
713 685
230276
0
200
400
600
800
Q4 '10 Q4 '11
2,1112,430
923 1,064
0
500
1,000
1,500
2,000
2,500
FY '10 FY '11
21
Review of “Other” Million € Q4 2011 Q4 2010 2011 2010
Sales 1,112 1,590 6,275 5,851
thereof Styrenics 714 2,393 2,848
EBIT before special items (11) (139) (404) (648) thereof Corporate research Group corporate costs Currency results, hedges and other valuation effects Styrenics, fertilizers, other businesses
(92) (74)
(107)
65
(96) (66)
(229)
142
(348) (246) (199)
408
(323) (226) (460)
387
Special items 623 149 582 (59)
EBIT 612 10 178 (707)
22
0
1
2
3
4
5
6
7
8
9
1.5
0.5
(3.4)
(1.8)
7.1
(2.5)
2.0
* Payments related to intangible assets and property, plant and equipment
Cash 12/31/10
Operating CF
Capex* Acquisitions & Divestitures
Dividends Other cash inflows
Cash 12/31/11
Excellent operating cash flow in 2011
Full Year 2011 (billion €)
Debt reduction
(2.4) 1.2
23
Balance sheet remains strong
Balance sheet 2011 vs. 2010 (billion €)
Liquid funds
Accounts receivable
Long-term assets
25.4
13.0
22.8
34.1
10.9
2.0
Other liabilities
Financial debt
Stock- holders’ Equity
Dec 31 2010
Dec 31 2010
Dec 31 2011
Dec 31 2011
61.2
34.5
10.2
1.5
61.2
22.7
15.0
21.7
Inventories
Other assets
8.7
4.5
10.1
4.1
59.4 59.4
Highlights 2011 Reduction of long-term assets
by €0.4 billion, thereof – €1.1 billion in other financial
assets – €0,5 billion increase of at
equity investments
Addition of – €1.4 billion of inventories – €0.7 billion of receivables
Equity ratio of 41.5%
Net debt: €11.0 billion
Net debt EBITDA ratio: 0.9
million € FY 2011 FY 2010 ∆% ∆% CER Sales* 4,165 4,033 3% 6%
EBITDA** 983 938 5% 11%
EBITDA margin** 23.6% 23.3% - -
EBIT** 810 749 8% 16%
EBIT margin** 19.4% 18.6% - -
Assets (as of Dec. 31) 5,350 5,063 6% 6%
Research and development expenses 412 393 5% 6% * sales drivers 2011: volumes 6%, prices 0%, currencies -3% ** before special items CER = at constant exchange rates
Sales and earnings record despite currency headwinds. Q4 2011 prices +2%
BASF Crop Protection Financial results FY 2011
25
Total sales 2011 to third parties Fungicides:
Global volume gains supported by high demand in emerging markets, Plant Health business. Xemium launch started in EU Herbicides:
Higher emerging markets demand overcompensates lower sales in North America Insecticides:
Continued growth in most product lines (e.g. Seed Solutions®), portfolio optimization
Fungicides 1,904 (+12%)
Herbicides 1,401 (+2%)
Insecticides/Other 860 (+1%)
Key facts
€4,165 (+6%)
In brackets growth at constant exchange rates in % vs. prior year
Sales growth particularly driven by fungicides
in million €
26
BASF Crop Protection Sales by indication FY 2011
Total sales 2011 to third parties Key facts Europe:
Strong growth contribution from herbicides, Eastern Europe North America:
High demand for Plant Health products. Herbicide business affected by acreage reductions, competition in imidazolinones South America, Africa, ME:
Intense use of Fipronil-based insecticides, AgCelence® thrived Asia Pacific:
Significantly increased demand for fungicides and herbicides in emerging markets
Asia Pacific 487 (+12%)
Europe 1,659 (+7%)
South America, Africa, Middle East
1,054 (+7%)
North America 965 (+1%)
€4,165 (+6%)
In brackets growth at constant exchange rates in % vs. prior year
in million €
Regionally balanced business Global volume growth, especially in emerging markets
27
BASF Crop Protection Sales by region FY 2011