Transcript Bilanz-Pressekonferenz, Ludwigshafen, 24. Februar 2012

Moving BASF to the next level –
The importance of innovation
Dr. Herbert Fisch
Vice President BASF Hungária Kft. &
Southeast Europe
Budapest, 18th May 2012.
BASF – The Chemical Company
We create chemistry for a sustainable future

Our chemicals are used in almost all
industries

We combine economic success, social
responsibility and environmental protection.

Sales 2011: €73,497 million

EBIT 2011: €8,586 million

Employees
(as of December 31, 2011): 111,141

In 2011, BASF filed for around 1,050 new
patents worldwide

6 Verbund sites and around 370 production
sites
Platzhalter für Bild
2
Structure of BASF’s segments
Chemicals
 Inorganics
 Petrochemicals
 Intermediates
Plastics
Performance
Products
 Performance
Polymers
 Dispersions &
Pigments
 Polyurethanes
 Care Chemicals
 Nutrition &
Health
Functional
Solutions
 Catalysts
 Construction
Chemicals
 Coatings
Agricultural
Solutions
 Crop Protection
Oil & Gas
 Exploration &
Production
 Natural Gas
Trading
 Paper Chemicals
 Performance
Chemicals
3
Demographic challenges set the stage
for the future of the chemical industry
Nine billion people in 2050 but only one earth
Resources, Environment &
Climate
Food & Nutrition
Quality of life
Chemistry as enabler
4
BASF’s Strategy 2025 „We create
chemistry for a sustainable Future”
Ambitious targets for the future
Growth
Profitability
 Grow at least 2 percentage
points above chemical
production
 Sales of €115 billion in 2020
 Earn a premium on cost of
capital of at least €2.5 billion
per year on average
 Thereof sales of €30 billion
with innovations launched
within last 10 years
 Double EBITDA compared
with 2010 to €23 billion in 2020
Targets for environment, health & safety as well as best team
complement financial targets
5
Stronger integration of sustainability
into our business decisions
Enable our customers to develop
more sustainable solutions
Creating value
Connect – in our team
and with society
Deliver excellence in
our operations
Reducing risk
6
Our solutions for a sustainable future
Megatrends drive growth & technology fields
Resources, Environment & Climate
Food & Nutrition
Quality of life
Growth fields*
Customer
industries
Chemistry as enabler
Transportation
Construction
Consumer
Goods
Health &
Nutrition
Electronics
Agriculture
Energy &
Resources
Batteries
Heat
management
Enzymes
Medical
Organic
Electronics
Plant
biotechnology
Functional
crop care
Energy
management
Rare earth
metals recycling
Leightweight
composites
Heat
management
Wind energy
Technology
fields
Water solutions
Raw material change
Materials, systems & nanotechnology
White biotechnology
*including growth fields still under evaluation
7
From Chemicals to Chemistry
Shift of Innovation Focus
1960
1970
1980
1990
2000
2010
2020
 Chemistry as key
enabler for
functionalized
materials & solutions
New
molecules
Improved
applications
Functionalized
materials &
solutions
 Deep understanding
of customer value
chains required
Batteries, membranes ...
From chemicals to chemistry
8
Innovation
Meeting challenges, developing new business areas
Research for the future: with our innovative products and processes, we provide sustainable
solutions for global challenges.


Expenditures for R&D circa €1.61 billion
world leader in chemical industry
Corporate Research
Since 2005 increase of R&D expenditures
by 50%
Plastics

Around 2,800 projects

Strongest innovation power in the chemical
industry
(No.1 in the Patent Asset IndexTM)

Sales target 2020: circa €30 billion from
product innovations
Chemicals
9%
8%
Performance
Products
21%
Functional
Solutions
Agricultural
Solutions
circa
€1.61
billion
23%
1%
12%
26%
Oil & Gas
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Growth and Technology Fields
Growth fields
Technology fields
Water Solutions
Raw Material Change
 Help our customers to implement solutions for
water recycling and reuse, water savings and
drinking water treatment
 Synthesis of formic acid and acrylates
 Batteries for Mobility
 Innovative insulation materials for buildings and
 Work on concepts for next generations of batteries
(lithium-sulfur, lithium-air)
Organic Electronics
 Material systems for OLEDs
(focus on blue phosphorescent emitting materials)
Materials, Systems & Nanotechnology
cars to reduce energy consumption
White Biotechnology
 Vitamin B2:
Highly efficient biocatalytical production
1%
10
BASF Interdisciplinary Know-How Verbund
Examples from our cooperation network
11
Connect – in our team and with society
 CHEMGENERATION: BASF Hungária launched an
educational website celebrating the International
Year of Chemistry jointly with the Hungarian
Chemical Society (MKE) and MOL, Richter, sanofiaventis/Chinoin, TEVA Gyógyszergyár, TVK
 Update of CHEMGENERATION: FUTURE CITY
game launched focusing on environmentally
conscious thinking
 BASF will initiate a TEENS’ LAB roadshow with
eight science universities and colleges in 2012
 BASF opened its KIDS’ LAB in cooperation with the
Museum of Transports
12
13
Our Values: CSR
BASF Hungária Kft.
CSR
 BASF acts responsibly in environment protection
drastically reducing CO2 emission and investing
heavily in green technologies
 BASF is active in Corporate Responsibility and
charity
 In 2007 & 2008 BASF transferred 14 million HUF
supporting the National Ambulance Service and the
Association of Hungarian Diabetic Patients
 www.chemgeneration.com: BASF Hungária Kft.
launched an educational website celebrating the
International Year of Chemistry with the Hungarian
Chemists’ Assotiation
 BASF opened its Kids’Lab in cooperation with the
Museum of Transports
Three pillars of our new innovation set-up
to make R&D more effective and efficient
15
BASF business units
in Hungary
BASF Hungária Kft.
BASF Poliuretán Hungária Kft.
Agro Division
Polyurethane Production
Industry Division
Construction Chemicals Division
BASF’s „We create chemistry”Strategy
puts focus on sustainable innovations
 Growth drivers: sustainability, innovation and investments
 Expansion of Functionalized Materials & Solutions
 Additional value from industry groups and cross-disciplinary innovation
 Technology and operational excellence in all businesses and regions
 Internationalization of organization according to market needs
17
Our purpose
We create chemistry
for a sustainable future
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Our strategic principles
We add value as
one company
We innovate to make our
customers more successful
Platzhalter für Bild
We drive sustainable
solutions
We form the
best team
19
Our Values: Brand
BASF Hungária Kft.
BASF’s brand value
 BASF Hungária does not sell simple
products: it’s core value is supporting
its customers & partners by systemintegrated solutions, BASF Hungária
offers a problem-solution focused
attitude
 Our core value is our unrivalled knowhow of our colleagues
2011 sales* and EBIT in the regions
million €
(Change to previous year in %)
Europe
56%
Sales 41,036
EBIT 5,668
+17%
+9%
North America
+11% Sales 14,727
+19% EBIT 1,314
South America,
Africa, Middle East
+15% Sales 4,418
+166% EBIT 471
Sales
BASF Group
73,497
20%
6%
18%
Asia Pacific
Sales 13,316
EBIT 1,133
+14%
-11%
*by location of company
21
Organization of the BASF Group

Six business segments contain 15 divisions which bear the
operational responsibility and manage 70 global and regional business units

These in turn develop strategies for 76 strategic business units

Regional divisions contribute to the local development of BASF’s business, help to exploit
market potential and are responsible for optimizing the infrastructure for our businesses

Three central divisions, five corporate departments and ten Competence Centers
provide Group-wide services such as finance, investor relations, communications, human
resources, research, engineering and site management
22
BASF’s segment – Oil & Gas
As the largest German producer of oil
and gas, we focus our exploration and
production on oil- and gas-rich regions
in Europe, North Africa, South
America, Russia and the Caspian Sea
region. Together with our Russian
partner Gazprom, we are active in the
transport, storage and trading of
natural gas in Europe.
Oil & Gas
 Exploration &
Production
 Natural Gas
Trading
23
BASF’s segment – Chemicals
Chemicals
 Inorganics
 Petrochemicals
 Intermediates
In the Chemicals segment, we supply
products to customers in the hemical,
electronics, construction, textile,
automotive, pharmaceutical and
agricultural industries as well as any
others. We also ensure that other
BASF segments are supplied with
chemicals for producing downstream
products. Our portfolio ranges from
basic chemicals, glues and electronic
chemicals for the semiconductor and
solar cell industries, to solvents and
plasticizers, as well as starting
materials for detergents, plastics,
textile fibers, paints and coatings,
and pharmaceuticals.
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BASF’s segment – Agricultural Solutions
Agricultural
Solutions
 Crop Protection
Our crop protection products guard
against fungal diseases, insects and
weeds and they increase quality and
secure crop yields. Our research in
plant biotechnology concentrates on
plants for greater efficiency in
agriculture, healthier nutrition and for
use as renewable raw materials.
Research and development expenses,
sales, earnings and all other data of
BASF Plant Science are not included
in the Agricultural Solutions segment;
they are reported in Other.
25
BASF’s segment – Functional Solutions
Functional
Solutions
 Catalysts
In the Functional Solutions segment,
we bundle system solutions and
innovative products for specific
sectors and customers, in particular
for the automotive, chemical and
construction industries. Our portfolio
comprises automotive and industrial
catalysts, automotive and industrial
coatings and concrete admixtures
as well as construction systems such
as tile adhesives and architectural
coatings.
 Construction
Chemicals
 Coatings
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BASF’s segment – Performance Products
Performance
Products
 Dispersions &
Pigments
 Care Chemicals
Performance Products lend stability
and color to countless everyday items
and help to improve their application
profile. Our product portfolio includes
vitamins and food additives as well as
ingredients for pharmaceuticals and
for hygiene, home and personal care
items. Other Performance Products
improve processes in the paper
industry, oil and gas production,
mining and water treatment. They can
also enhance the efficiency of fuels
and lubricants, the effectiveness of
adhesives and coatings, and the
stability of plastics.
 Nutrition & Health
 Paper Chemicals
 Performance
Chemicals
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BASF’s segment – Plastics
Plastics
 Performance
Polymers
 Polyurethanes
The Plastics segment includes a broad
range of products, system solutions
and services. We offer a number of
engineering plastics for the automotive
and electrical industries as well as for
use in household appliances and
sports and leisure products. Our
styrenic foams are used as insulating
materials in the construction industry
and in packaging. Our polyurethanes
are extremely versatile: As soft foams,
for example, they improve car seats
and mattresses, and as rigid foams
they increase the energy efficiency of
refrigerators.
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Innovation
Global Know-how Verbund
Thanks to our close cooperation with numerous partners from science and business
worldwide, we have created an international and interdisciplinary Know-how Verbund.
Science Relations and Innovation Management


Approx. 10,100 employees
in research and
development worldwide
Science Relations and Innovation Management
Universities
Research institutions
Research Verbund with
about 1,950 cooperations
Process Research &
Chem. Engineering
Biological
& Effect
Systems
Research
High-tech
joint ventures
BASF
Research
Verbund
Advanced
Materials
& Systems
Research
Plant
Science
Partners in industry
BASF Future Business
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Our solutions for a sustainable future
Innovation process to identify growth fields
30
BASF has the strongest patent portfolio
in the chemical industry
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