BASF Q3-2010 results
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13rd Quarter 2010 Financial Highlights ___ October 28, 2010
Third Quarter 2010 Financial Highlights
On track for a record year
October 28, 2010
23rd Quarter 2010 Financial Highlights ___ October 28, 2010
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
33rd Quarter 2010 Financial Highlights ___ October 28, 2010
Business dynamics remained strong in Q3
1.21.5
2.02.2 2.2
0.0
0.5
1.0
1.5
2.0
2.5
Q3 Q4 Q1 Q2 Q3
Sales developmentPeriod Volumes Prices Portfolio Currencies
Q3’10 vs. Q2’10 (3)%* 0% 0% 0%
Q3’10 vs. Q3’09 5% 10% 0% 8%
1-9 ’10 vs. 1-9 ’09 14% 6% 2% 4%
EBIT before special items (billion €)
20102009
12.8 13.215.5 16.2 15.8
0
4
8
12
16
20
Q3 Q4 Q1 Q2 Q3
Sales (billion €)
* +2% volume growth w/o Agricultural solutions and Oil & Gas
20102009
43rd Quarter 2010 Financial Highlights ___ October 28, 2010
Sales €15.8 billion - 3% +23%EBITDA €2.9 billion +2% +47%EBITDA margin 18.6% 17.7% 15.6%EBIT before special items €2.2 billion - +77%EBIT €2.16 billion +4% +122%Net income €1.25 billion +5% +425%Adjusted EPS €1.52 +1% +149%
Q3 2010 performance vs. Q2’10 vs. Q3’09
Third quarter 2010 highlights Strong business dynamics in all segments
Q3 2010 business development
Volume growth in Chemical ActivitiesAgricultural Solutions started successfully into the season in South AmericaOil & Gas earnings were above previous year due to higher oil priceVery strong operating cash flow of €5.3 billion in the first three quarters
53rd Quarter 2010 Financial Highlights ___ October 28, 2010
Important operational developments
Construction ChemicalsSTYROLUTION Oil and Gas
Carve-out of Styrenics activities into STYROLUTIONEffective: January 1, 2011Sales 2009: €2.5 billionEmployees 2009: 1,460
BASF admixtures used in the construction of Gotthard Base Tunnel – World’s longest railway tunnelSpecial admixtures for long distance and high temperature
Five North Sea oil discoveries in 2010:
– Norway: Beta and Maria; – UK: Catcher, Blakeney,
CladhanNew discoveries with growth potentialAppraisal phase starts asap
63rd Quarter 2010 Financial Highlights ___ October 28, 2010
Chemicals Continued strong demand
Intermediates643(1)%
Inorganics322
(1)%
Petrochemicals1,909(4)%
€2,874 (3)%
364315
461
687617
0
200
400
600
Q3 Q4 Q1 Q2 Q3
Sales developmentPeriod Volumes Prices Portfolio Currencies
Q3’10 vs. Q2’10 0% (2)% 0% (1)%
Q3’10 vs. Q3’09 10% 25% 0% 9%
1-9 ’10 vs. 1-9 ’09 22% 31% 0% 4%
Q3’10 segment sales (million €) vs. Q2’10 EBIT before special items (million €)
20102009
73rd Quarter 2010 Financial Highlights ___ October 28, 2010
Plastics Earnings up again thanks to high capacity utilization
Polyurethanes1,458+4%
Performance Polymers
1,140(4)%
€2,598 +1%
216251
279
349 371
0
200
400
Q3 Q4 Q1 Q2 Q3
Sales development Period Volumes Prices Portfolio Currencies
Q3’10 vs. Q2’10 1% 0% 0% 0%
Q3’10 vs. Q3’09 14% 7% 0% 11%
1-9 ’10 vs. 1-9 ’09 27% 10% 0% 5%
Q3’10 segment sales (million €) vs. Q2’10 EBIT before special items (million €)
20102009
83rd Quarter 2010 Financial Highlights ___ October 28, 2010
Performance Products Solid earnings despite one-off costs
286209
419471
370
0
100
200
300
400
500
Q3 Q4 Q1 Q2 Q3
Sales developmentPeriod Volumes Prices Portfolio Currencies
Q3’10 vs. Q2’10 1% 1% 0% 0%
Q3’10 vs. Q3’09 7% 7% 0% 7%
1-9 ’10 vs. 1-9 ’09 15% 3% 13% 4%
Dispersions & Pigments
887+4%
Performance Chemicals
832+3%
Care Chemicals682+1%
€3,206 +2%
Paper Chemicals448+2%
Q3’10 segment sales (million €) vs. Q2’10 EBIT before special items (million €)
Nutrition & Health357(4)%
20102009
*
* Reduction in EBIT before special items due to one-time charges
93rd Quarter 2010 Financial Highlights ___ October 28, 2010
Functional Solutions Increased volumes drive topline growth
Catalysts1,347+10%
Construction Chemicals599
+4%
Coatings645
(1)%
€2,591 +6%
106 101 111
165 158
0
50
100
150
Q3 Q4 Q1 Q2 Q3
Sales developmentPeriod Volumes Prices Portfolio Currencies
Q3’10 vs. Q2’10 7% (1)% 0% 0%
Q3’10 vs. Q3’09 15% 9% 1% 12%
1-9 ’10 vs. 1-9 ’09 18% 11% 1% 7%
Q3’10 segment sales (million €) vs. Q2’10 EBIT before special items (million €)
20102009
103rd Quarter 2010 Financial Highlights ___ October 28, 2010
Agricultural Solutions Successful start to new season in South America
21
66
0
40
80
Q3 Q3
Sales developmentPeriod Volumes Prices Portfolio Currencies
Q3’10 vs. Q2’10 (31)% (1)% 0% 1%
Q3 ’10 vs. Q3 ’09 29% (6)% 0% 11%
1-9 ’10 vs. 1-9 ’09 7% (3)% 0% 4%
Q3’10 segment sales (million €) vs. Q3’09 EBIT before special items (million €)
20102009
832
623
0
200
400
600
800
1,000
Q3 Q320102009
+34%
+214%
113rd Quarter 2010 Financial Highlights ___ October 28, 2010
186 272
0
200
400
600
800
Q3 Q3
Oil & Gas Improved earnings despite lower volumes
Exploration & Production881(1)%
Natural Gas Trading
1,347(10)%
€2,228 (7)%
Sales developmentPeriod Volumes Prices/Currencies Portfolio
Q3’10 vs. Q2’10 (12)% 6% 0%
Q3’10 vs. Q3’09 (23)% 16% 0%
1-9 ’10 vs. 1-9 ’09 3% (13)% 0%
83 70
EBIT bSI Natural Gas TradingEBIT bSI Exploration & Production
Net income
Q3’10 segment sales (million €) vs. Q3’09 EBIT before special items / Net income (million €)
20102009
467503
550 573
123rd Quarter 2010 Financial Highlights ___ October 28, 2010
Review of “Other”
Million € Q3 2010 Q3 2009
Sales 1,452 1,280thereof Styrenics 815 696
EBIT before special items 58 (295)thereof Group Corporate Costs
Corporate Research Currency results, hedges and other valuation effects Styrenics, fertilizers, other businesses
(54) (67) 104
77
(54) (81) (92)
43
Special items (68) (96)
EBIT (10) (391)
133rd Quarter 2010 Financial Highlights ___ October 28, 2010
Cash flow of €5.3 billion Very strong cash flow generation in Q3
Million € Jan – Sept 2010 Jan - Sept 2009
Cash provided by operating activities 5,307 4,959*thereof Changes in net working capital (783) 1,558
Cash used in investing activities (1,175) (3,418)thereof Payments related to tangible / intangible assets (1,518) (1,828)
Cash used in financing activities (3,814) (1,372)*thereof Changes in financial liabilities
Dividends (2,003) (1,811)
789 (2,027)
Q3 operating cash flow at €2.6 billionFree cash flow at €2.0 billion again on a high levelNet debt reduced by €2.1 billion to €11.4 billion compared with the end of the second quarter 2010
Third quarter 2010
* 2009 adjusted for reclassification of settlement payments for currency derivatives
143rd Quarter 2010 Financial Highlights ___ October 28, 2010
Introducing the next leading technologies
CO2 scrubbing NaphthaMax®
III
High-efficiency capture of carbon dioxide (CO2) from combustion gases in coal-fired power plantsDevelopment of new processes and solvents
Catalyst for Fluid Catalytic Cracking (FCC) unitsIncreased zeolite activity and coke selectivity as well as improved hydrothermal stabilityIncreased gasoline yield from the FCC unitTranslating to higher refinery margins
Standak®
Top
SeedSolutions® innovation for soybean growers in BrazilReady-to-use insecticidal and fungicidal seed protection with Plant Health characteristicsAttractive and fast growing market driven by high value seed
153rd Quarter 2010 Financial Highlights ___ October 28, 2010
We aim to grow sales on average by two percentage points per year above chemical market growth.We strive to grow our earnings further year by year and to achieve an EBITDA margin of 18% until 2012.
We expect:- the good business development to continue in the fourth quarter of 2010 - sales of ~€ 63 billion and EBIT before special items of more than € 8 billion in 2010- to earn a high premium on our cost of capital- to increase the dividend
Targets 2010
Medium-term targets
Outlook: record year 2010
We aim to continuously increase the annual dividend, or at least maintain it at the level of the previous year.
Dividend policy
163rd Quarter 2010 Financial Highlights ___ October 28, 2010
173rd Quarter 2010 Financial Highlights ___ October 28, 2010
Back-Up
183rd Quarter 2010 Financial Highlights ___ October 28, 2010
Financial highlights Q3
Million € Q3 2010 Q2 2010 Δ% Q3 2009 Δ%Sales
changes due to - volumes - prices - portfolio - currencies
15,781 16,214 -3%
-3% 0% 0% 0%
12,798 +23%
+5% +10% +0% +8%
EBITDA 2,934 2,867 +2% 1,993 +47%
EBIT before special items 2,213 2,206 0% 1,248 +77%
Special items (58) (127) (277)
EBIT 2,155 2,079 +4% 971 +122%
Net income 1,245 1,183 +5% 237 +425%
EPS (€) 1.35 1.29 +5% 0.26 +419%
Adjusted EPS (€) 1.52 1.50 +1% 0.61 +149%
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