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Picture: K Fair 2016 in Düsseldorf
Raimar Jahn President
Performance Materials
Ludwigshafen
March 30, 2017
Innovative solutions for key industries
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2Performance Materials, March 30, 2017
This presentation contains forward-looking statements. These statements are based on current
estimates and projections of BASF management and currently available information. Future
statements are not guarantees of the future developments and results outlined therein. These are
dependent on a number of factors; they involve various risks and uncertainties; and they are based
on assumptions that may not prove to be accurate. Such factors include those discussed in the
Opportunities and Risks Report from pages 111 to 118 of the BASF Report 2016. We do not assume
any obligation to update the forward-looking statements contained in this presentation.
Cautionary note regarding
forward-looking statements
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3Performance Materials, March 30, 2017
Performance MaterialsCatalysts
Sales 2016:
€6.3 billion
Mobile emissions
catalysts
Process catalysts
Battery materials
Precious metals trading
Sales 2016:
€3.2 billion
Sales 2016:
€6.9 billion
Automotive OEM &
refinish coatings
Industrial coatings
Decorative paint solutions
Polyurethane systems
Engineering plastics
Biodegradable plastics
Foams
Coatings
Functional Materials & Solutions
Sales 2016:
€2.3 billion
Concrete admixtures
Systems for residential
and commercial
construction
Construction Chemicals
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4Performance Materials, March 30, 2017
Plastics Foams
Ultramid®
Ultradur®
Ultraform®
Ultrason®
ecovio® / ecoflex®
Elastollan®
Styropor® / Neopor®
Styrodur®
Infinergy®
Cellasto®
Basotect®
PU Systems
Performance Materials combines the best of two worlds
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5Performance Materials, March 30, 2017 * By location of customer
North America
23%
South America, Africa,
Middle East
3%
Europe
47%
Asia Pacific
27%
EBIT before special items
(indexed)
50
100
150
200
250
300
2012 2013 2014 2015 2016
€6.9 billion
Net sales by region* 2016
Clear customer focus, innovative solutions and regional
presence drive our earnings growth
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6Performance Materials, March 30, 2017
14,000
products
4,000
raw materials
Sales in
130 countries
11,000
customers
~ 7,000
employees
92
production sites TPU
#1 PBT compounds
Cellasto®
PA 6 & 6.6 compounds
We successfully manage a complex business
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7Performance Materials, March 30, 2017
ConstructionConsumer TransportationIndustrial
* Percent of total sales in 2016
Foams & plastics (shoes,
furniture, appliances)
Biopolymers
Solutions for:
Residential
Commercial
Infrastructure
Solutions for:
Extrusion
Electrical & Electronics
Mechanical Engineering
Lightweight plastics
(misc. applications)
Simulation
competence
We focus on four target industries
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8Performance Materials, March 30, 2017
Verbund Example
Intermediates and Performance Materials
* Polybutylene terephthalate ** Polyoxymethylene
Natural gas
MethanolForm-
aldehyde
1,4-ButanediolTetra-
hydrofuranPolyTHF®
POM**
Glues & resins
gamma-Butyrolactone
N-Methyl-pyrrolidone
Pyrrolidones
PBT*Engineering
plastics
Thermoplastic PU
Personal care products
Intermediates
Acetylene
Downstream units
Other specialtiesVinylethers
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9Performance Materials, March 30, 2017
Natural gas 1,4-ButanediolTetra-
hydrofuranPolyTHF®
PBT*Engineering
plastics
Thermoplastic PU
Chemicals
Acetylene
Downstream units
* Polybutylene terephthalate
Verbund Example
Intermediates and Performance Materials
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10Performance Materials, March 30, 2017
Consumer Industrial TransportationConstruction
We focus on four target industries
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11Performance Materials, March 30, 2017
Strong increase in global demand
for E-TPU
Variety of applications beyond
running shoes
Production capacity increase to
follow global demand:
– TPU expansion in
Lemförde, Germany 2014
– New TPU plant in
Shanghai, China 2015
– TPU production upgrade in
Wyandotte, Michigan 2015
– New TPU plant in
Lemförde, Germany 2017
Consumer
Infinergy® sets new standards for running shoes
2013 2015 2017 2019 2021
Demand for Infinergy®
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12Performance Materials, March 30, 2017
Spray coating technology launched in 2016
Design freedom supports benchmark position of the adidas boost™
High market potential for colored soles
Fully automized production in the adidas Speedfactory
Consumer
BASF creates opportunities for differentiation
Source: adidas
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13Performance Materials, March 30, 2017
Consumer Industrial TransportationConstruction
We focus on four target industries
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14Performance Materials, March 30, 2017
Flame retardancy
Miniaturization
Decreased wall thickness
Increasing energy distribution
Industrial
Our products push performance in E&E applications
Base made of flame-retardant Ultramid®
Design cover made of Ultradur® due to its
printability and good flowability for injection molding
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15Performance Materials, March 30, 2017
Industrial
2014 20202014 2020
Market development for E&E PBT applications
Volumes
(thousand metric tons)
Sales
(million US$)
CAGR
4.9%
CAGR
5.3%
We prepare for growth
Capacity expansion for PA & PBT
compounding in Schwarzheide, Germany
Additional 70,000 metric tons per year
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16Performance Materials, March 30, 2017
TPU charging cables for
– better durability
– stain resistance
Industrial
Our materials are the products of choice
Many opportunities in consumer electronics
Substitution of dominant materials such as glass and
magnesium offer large potential
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17Performance Materials, March 30, 2017
Consumer Industrial TransportationConstruction
We focus on four target industries
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18Performance Materials, March 30, 2017
Inorganic aerogel material, initially designed for use in space suits
Low lambda value of ≤19mW/m • K allows very slim composite systems for thermal insulation
Non-flammable
Construction
Slentex® sets new standards for high-performance
insulation
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19Performance Materials, March 30, 2017
Construction
Leading aerogel technology
Diversification
Growth
Partnership
Technical expertise
Market knowledge
Sales channels
aspen aerogels® and BASF have strengthened
their partnership
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20Performance Materials, March 30, 2017
2015 2020 2025
Source: B+L external market study HPI 2013
Construction
Market development in Germany, United Kingdom and France
(m3)
Market development of high-performance insulation boards
300,000
200,000
100,000
Slentite pilot plant, Lemförde
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21Performance Materials, March 30, 2017
High bending strength and wind
resistance
75% lighter than concrete for
easier installation
Material know-how and filament
winding competence
Forward integration through toll
manufacturing
Construction
BASF PU compositesStandard material
Utility poles made of BASF’s PU composites
could withstand the typhoon Rammasun in China
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22Performance Materials, March 30, 2017
Consumer Industrial TransportationConstruction
We focus on four target industries
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23Performance Materials, March 30, 2017
Ultrasim®
simulation expertise
Transportation
We provide integrated solutions for outstanding
performance
Ultramid®
material competence
Cellasto®
automotive experience
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24Performance Materials, March 30, 2017
Volkswagen front-end carrier
Golf, Passat, Sharan
Transportation
Simulation of existing applications and
beyond with Ultrasim®
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25Performance Materials, March 30, 2017
Transportation
Ultrasim® model
Simulation of existing applications and
beyond with Ultrasim®
Volkswagen front-end carrier
Golf, Passat, Sharan
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26Performance Materials, March 30, 2017
Transportation
BMW X1 dashboard
Developed with Yanfeng
Simulation of existing applications and
beyond with Ultrasim®
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27Performance Materials, March 30, 2017
Transportation
BMW X1 dashboard
Developed with Yanfeng
Ultrasim® model
Simulation of existing applications and
beyond with Ultrasim®
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28Performance Materials, March 30, 2017
Transportation
Premium Supplier Award
Faurecia
Supplier Excellence Award
Eaton
Supplier of the Year
Yanfeng
Our customers appreciate our support and they show it
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29Performance Materials, March 30, 2017
Translucent polyamide
Design elements in shoes and furniture
Ambient lighting in cars
Transportation
New polymer grades (HTPA, PPA)
High usage temperature
Outstanding chemical resistance
We forecast high market growth
Our strong R&D pipeline makes us the supplier of choice
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30Performance Materials, March 30, 2017
Expertise in materials, trends, design, processing, and simulation – all under one roof!
We are taking customer collaboration to the next level
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31Performance Materials, March 30, 2017BASF Investor Day 2015 – Keynote speech 31