basf charts analyst conference call q3-2013
TRANSCRIPT
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Third
Quarter 2013
Financial highlights
October 25, 2013
Robust 3rd Quarter 2013 for BASF
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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.
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Robust 3rdquarter 2013 for BASF
Sales development
Period Volumes Prices Portfolio Currencies
Q313 vs. Q312 6% (1%) 1% (5%)
3BASF Q3 2013 Analyst Conference Call October 25, 2013
Business performance Q313 vs. Q312 Q1-Q313 vs. Q1-Q312
Sales 17.7 billion +1.5% 55.8 billion +3%
EBITDA 2.5 billion +16% 7.8 billion (1%)
EBIT before special items 1.7 billion +15% 5.7 billion +6%
EBIT 1.7 billion +20% 5.6 billion (1%)
Net income 1.1 billion +18% 3.7 billion (4%)
Reported EPS 1.20 +19% 4.03 (4%)
Adjusted EPS 1.28 +10% 4.35 +1%
Operating cash flow 2.0 billion +21% 6.0 billion +19%
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Cash offer of 4 US dollarsper share,
Offer expires on October
31, 2013 Enterprise value
~62 million US dollars
Acquisition will strengthenBASFs footprint in theenzyme growth market
Optimization of globalproduction network
Reduction of 650 positions
worldwide Investment of 250 million
in production and R&D
Transaction completedJuly 31, 2013
Increased production from3,000 to ~40,000 boe perday in Norway
Compensation payment of781 million US dollars*
Important corporate developments
4
Transaction with Statoil
completedRestructuring in Pigments
business
Cash of fer for Verenium
enzyme biotechnology
BASF Q3 2013 Analyst Conference Call October 25, 2013
* Euro/dollar exchange rate July 31, 2013: 1= $1.3275
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ChemicalsPressure on volumes and margins
Intermediates
700
(7%)
Monomers
1,599
(11%)
Petrochemicals
1,925
(6%)
4,224(8%)
Q313 segment sales(million ) vs. Q312
Sales development
Period Volumes Prices Portfo lio Currencies
Q313 vs. Q312 (2%) (3%) 0% (3%)
5
EBIT before special items (million )
569
445
650
495 527
0
200
400
600
800
Q3 Q4 Q1 Q2 Q3
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Performance ProductsGrowth in volumes and earnings
Performance
Chemicals
896
(3%)
Care Chemicals
1,209
(1%)
3,939(1%)
Paper Chemicals
365
(8%)
Q313 segment sales(million ) vs. Q312
Nutrition
& Health
540
+10% Dispersions
& Pigments
929
(2%)
EBIT before special items (million )
Sales development
Period Volumes Prices Portfo lio Currencies
Q313 vs. Q312 6% (3%) 1% (5%)
344
183
379 394 376
0
200
400
600
Q3 Q4 Q1 Q2 Q3
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Functional Materials & SolutionsSound overall demand, especially in automotive
Catalysts
1,466
+12%
Construction
Chemicals
576
(9%)
Coatings
728
(5%)
4,439+3%
Q313 segment sales(million ) vs. Q312
Sales development
Period Volumes Prices Portfo lio Currencies
Q313 vs. Q312 8% 2% (1%) (6%)
Performance
Materials
1,669
+5%
231 228 239
293 300
0
200
400
600
Q3 Q4 Q1 Q2 Q3
7
EBIT before special items (million )
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Agricultural SolutionsSales growth despite pronounced currency headwinds
Q313 segment sales(million ) vs. Q312
Sales development
Period Volumes Prices Portfo lio Currencies
Q313 vs. Q312 8% 4% 3% (10%)
0
100
200
Q3 Q3
0
300
600
900
1.200
Q3 Q3
1,054 1721711,008
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EBIT before special items (million )
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103
318
62
451
0
100
200
300
400
500
Q3/2012 Net Income Q3/2013 Net Income
Oil & GasSubstantially higher net income
Exploration &
Production
754
+15%
Natural Gas
Trading
2,376
+29%
3,130+25%
Q313 segment sales(million ) vs. Q312 EBIT bSI/Net income (million )
Natural Gas Trading
Exploration & Production
Net income
Sales development
Period Volumes Prices/Currencies Portfo lio
Q313 vs. Q312 22% (2%) 5%
499
396 360
422
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Review of Other
Million Q313 Q312
Sales 947 1,087
EBIT before special items (105) (343)
Thereof Corporate research
Group corporate costsCurrency result, hedges and other
Valuation effects
Other business
(90)
(57)(74)
59
(95)
(63)(249)
30
Special items (24) (44)
EBIT (129) (387)
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Cash FlowExcellent cash flow in Q1-Q3 2013
Million Q1-Q313 Q1-Q312
Cash provided by operating activi ties 5,982 5,025
Thereof Changes in net working capital
Miscellaneous items
374
(327)
(639)
(450)
Cash prov ided by investing activi ties (4,629) (2,018)
thereof Payments related to tangible / intangible assets (3,038) (2,702)
Acquisitions / divestitures (1,093) 411
Cash used in financing activit ies (1,300) (3,383)
thereof Changes in financial liabilities
Dividends
1,304
(2,604)
(868)
(2,510)
Net working capital decreased
Increased capex at 3 billion
Strong free cash flow of 2.9 billion against 2.3 billion in 2012
Equity ratio of 41%; net debt increased by 1.8 billion to 13 billion
Q1-Q3 2013
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We do not anticipate an acceleration of global economic growth in the 4thquarter of 2013
For the full year, BASF confirms its outlook: We strive to exceed the record levels in sales andEBIT before special items in a challenging economic environment
Our focus on growth markets and innovation, in combination with our measures to optimizeour portfolio and to improve operational excellence, will contribute to this
We aim to earn a high premium on cost of capital in 2013
Outlook 2013
GDP: +2.0% (unchanged)
Industrial production: +2.7% (unchanged)
Chemical production: +3.1% (unchanged)
US$ / Euro: 1.30 (unchanged)
Oil price (US$ / bbl): 105 (unchanged)
Assumpt ions 2013
Outlook 2013
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