BASF's segment

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Dec 5, 2012 (4 years and 9 months ago)

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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

2

Platzhalter für Bild



Structure of BASF’s segments

3

Chemicals

Plastics

Performance
Products

Functional
Solutions

Agricultural

Solutions

Oil & Gas


Inorganics


Petrochemicals


Intermediates


Performance

Polymers


Polyurethanes


Dispersions &
Pigments


Care Chemicals


Nutrition &
Health


Paper Chemicals


Performance

Chemicals


Catalysts


Construction

Chemicals


Coatings


Crop Protection


Exploration &
Production


Natural Gas
Trading


Demographic challenges set the stage

for the future of the chemical industry

4

Nine billion people in 2050
but

only one earth

Food & Nutrition

Quality of life

Chemistry as enabler

Resources, Environment &
Climate


5

BASF’s

Strategy 2025

„We create
chemistry

for a sustainable Future


Ambitious targets for the future


Earn a premium on cost of
capital of at least

2.5 billion

per year on average

Profitability

Growth


Grow at least 2 percentage
points above chemical
production


Sales of

115 billion in 2020


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

Stronger integration of sustainability

into our business decisions

Connect


in our team

and with society

Enable our customers to develop

more sustainable solutions

Deliver excellence in

our operations

Creating value


Reducing risk

6

Our solutions for a sustainable future

Megatrends drive growth & technology fields

7

Resources, Environment & Climate

Food & Nutrition


Quality of life

Chemistry as enabler

Health &
Nutrition

Consumer
Goods

Construction

Transportation

Electronics

Energy &
Resources

Agriculture

Customer
industries

Energy
management

Water solutions

Wind energy

Rare earth
metals recycling

Heat
management

Enzymes

Plant
biotechnology

Batteries

Leightweight
composites

Heat
management

Functional

crop care

Medical

Organic
Electronics

Growth fields*

*including growth fields still under evaluation

Raw material change

Materials, systems & nanotechnology

White biotechnology

Technology


fields

8

From Chemicals to Chemistry

Shift of Innovation Focus


New
molecules

Improved
applications

Functionalized
materials &
solutions

1960

1970

1980

1990

2000

2010

2020


Chemistry as key
enabler for
functionalized
materials & solutions


Deep understanding
of customer value
chains required

Batteries, membranes ...

From chemicals to chemistry

Innovation

Meeting challenges, developing new business areas


Expenditures for R&D circa

1.61 billion

world leader in chemical industry


Since 2005 increase of R&D expenditures
by 50%


Around 2,800 projects


Strongest innovation power in the chemical
industry

(No.1
in the Patent Asset Index
TM
)


Sales target 2020: circa

30 billion from

product innovations

23%
26%
12%
21%
9%
8%
Plastics

Functional

Solutions

Performance

Products

Chemicals

Agricultural

Solutions

Oil & Gas

Corporate Research

circa


1.61

billion

1%

9

Research for the future: with our innovative products and processes, we provide sustainable
solutions for global challenges.

Growth
and Technology
Field
s

10

1%

Growth fields


Water Solutions


Help our customers to implement solutions for
water recycling and reuse, water savings and
drinking water treatment


Batteries for Mobility


Work on concepts for next generations of batteries

(lithium
-
sulfur, lithium
-
air)

Organic Electronics


Material systems for OLEDs

(focus on blue phosphorescent emitting materials)



Technology fields


Raw Material Change



Synthesis of formic acid and acrylates


Materials, Systems & Nanotechnology



Innovative insulation materials for buildings and


cars to reduce energy consumption


White Biotechnology



Vitamin B
2
:


Highly efficient biocatalytical production



BASF Interdisciplinary Know
-
How Verbund

Examples from our cooperation network

11

12




Connect


in our team and with society




CHEMGENERATION: BASF Hungária launched a
n
educational website celebrating the International
Year of Chemistry

jointly
with the Hungarian
Chemical Society (MKE) and MOL, Richter, sanofi
-
aventis/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


13

Our Values: CSR

BASF Hung
ária Kft.

CSR


BASF acts responsibly in environment protection
drastically reducing CO
2

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 a
n 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.

Agro Division

Industry Division


Construction Chemicals Division

BASF Poliuretán Hungária Kft.

Polyurethane Production

17


Expansion of Functionalized Materials & Solutions


Technology and operational excellence in all businesses and regions


Additional value from industry groups and cross
-
disciplinary innovation


Internationalization of organization according to market needs


Growth drivers: sustainability, innovation and investments

BASF’s „We create chemistry”Strategy

puts focus on sustainable innovations

Our purpose

18

Platzhalter für Bild

We create chemistry

for a sustainable future

Our strategic principles

19

Platzhalter für Bild

We add value as

one

company

We innovate to make our

customers more successful

We drive sustainable

solutions

We form the

best team

Our Values:
Brand

BASF Hung
ária Kft.

BASF’s brand value


BASF Hungária does not sell simple
products: it’s core value is supporting
its customers & partners by system
-
integrated solutions, BASF Hungária
offers a problem
-
solution focused
attitude


Our core value is our unrivalled know
-
how of our colleagues

2011 sales* and EBIT in the regions

Sales

BASF Group

73,497

North America

South America,

Africa, Middle East

Asia Pacific

56%

18%

6%

20%

million



(Change to previous year in %)

Europe

+14%

Sales 13,316

Sales 41,036

Sales 4,418


+15%

Sales 14,727

+11%

+17%

EBIT 1,314

+19%

EBIT 471

+166%

EBIT 5,668


+9%

EBIT 1,133

-
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

23

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

BASF’s segment


Chemicals

24

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.

Chemicals


Inorganics


Petrochemicals


Intermediates

BASF’s segment


Agricultural Solutions

25

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.

Agricultural

Solutions


Crop Protection

BASF’s segment


Functional Solutions

26

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.

Functional
Solutions


Catalysts


Construction

Chemicals


Coatings

BASF’s segment


Performance Products

27

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.

Performance
Products


Dispersions &
Pigments


Care Chemicals


Nutrition & Health


Paper Chemicals


Performance

Chemicals

BASF’s segment


Plastics

28

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.

Plastics


Performance

Polymers


Polyurethanes

Innovation

Global Know
-
how Verbund

29

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

Science Relations and Innovation Management

BASF Future Business

Universities

Partners in industry

Research institutions

High
-
tech

joint ventures


Approx. 10,100 employees

in research and
development worldwide


Research Verbund with
about 1,950 cooperations


BASF

Research

Verbund

Biological

& Effect

Systems

Research

Process Research &

Chem. Engineering

Advanced

Materials

& Systems

Research

Plant

Science



Our solutions for a sustainable future

Innovation process to identify growth fields

30



BASF has the strongest patent portfolio
in the chemical industry

31