Docstoc

BASF Quarter Analyst Conference Call July

Document Sample
BASF Quarter Analyst Conference Call July Powered By Docstoc
					BASF 2nd Quarter 2012 Analyst Conference Call
July 26, 2012, 11:00 (CEST), Ludwigshafen




Analyst Conference Call Script
Dr. Kurt Bock
Dr. Hans-Ulrich Engel

The spoken word applies.
                                                            Page 2
BASF 2nd Quarter 2012 Analyst Conference Call                                                          July 26, 2012




 Forward-looking statements

 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.

 BASF 2nd Quarter 2012 Analyst Conference Call                                                     2




 BASF shows solid development
 Second quarter 2012 highlights


   Business performance                            Q2’12             vs. Q2’11

      Sales                                     €19.5 billion          +6%
      EBITDA                                    €3.1 billion           +4%
      EBIT before special items                 €2.5 billion          +11%
      EBIT                                      €2.2 billion           +1%
    Net income                                  €1.2 billion          (15%)
    EPS                                         €1.34                 (16%)
    Adjusted EPS                                €1.60                  (9%)


      New second quarter record for sales and earnings in Agricultural Solutions
      Oil & Gas outperformed mainly due to the resumption of oil production in Libya
      Demand in chemical businesses did not match the strong previous year level
      Weaker than expected demand in China
      Overall sales and earnings in H1 2012 came in above H1 2011
 BASF 2nd Quarter 2012 Analyst Conference Call                                                     3
                                        Page 3
BASF 2nd Quarter 2012 Analyst Conference Call                 July 26, 2012



Dr. Kurt Bock
Ladies and Gentlemen, good morning and thank you for joining us.


[Chart 3: BASF shows solid development]


 The world economy experienced a turbulent first half of 2012 and
  we saw uncertainty increase in all regions. The deepening of the
  euro debt crisis overshadowed the global business sentiment in
  the second quarter. Concerns were also raised by the slower
  growth in China. All in all, chemical demand weakened more than
  expected earlier this year, both in the developed and the
  emerging markets.

 In this challenging environment, BASF was able to deliver a solid
  second quarter. At 19.5 billion euros, sales were 6 percent higher
  than a year ago. Our topline benefited from the weaker euro.

 In Agricultural Solutions we experienced excellent demand for our
  innovative products and delivered an outstanding quarter – the
  best second quarter ever.

 In Oil and Gas, our strong growth was supported by improving
  production volumes in Libya.

 In our chemical businesses, however, volumes could not be
  maintained compared to the very strong level of the previous
  year’s second quarter. During the course of Q2 we saw a swing
  towards lower raw material prices. This triggered cautious
  customer behavior and order delays. Overall, prices were stable.
                                        Page 4
BASF 2nd Quarter 2012 Analyst Conference Call    July 26, 2012
                                        Page 5
BASF 2nd Quarter 2012 Analyst Conference Call                July 26, 2012



 EBITDA came in at 3.1 billion euros, up 4 percent from last year.
  EBIT before special items at 2.5 billion euros significantly
  exceeded last year’s second quarter.

 Special items in EBIT amounted to minus 261 million euros and
  included restructuring charges as well as the impairment of an oil
  field development project in Norway.

 The tax rate increased to 39 percent mainly due to non-
  compensable oil taxes in Libya. This burdened our net income.

 Adjusted earnings per share decreased by 9 percent to 1.60
  euros.

 Overall, in the first half of 2012 we were able to exceed the
  exceptionally high sales and earnings before special items of the
  first half of the previous year.
                                                                          Page 6
BASF 2nd Quarter 2012 Analyst Conference Call                                                                               July 26, 2012




 Important milestones in Q2 2012

            Investments in                              Strengthening of                     Active portfolio
           emerging markets                           technology platform                     management




  BASF to invest in new                          BASF acquired Novolyte             BASF acquired Mazzaferro‘s
     chemical production site in                   Technologies                        polyamide polymer business
     Dahej, India                                 Novolyte’s energy storage          Production of PA 6 and
  Investment of €150 million                      activities focused on               compounds in Brazil
  Production facilities for                       developing, producing and          Further strengthening position in
     polyurethanes, care chemicals,                marketing performance               engineering plastics and PA
     polymer dispersions for                       electrolyte formulations            polymers in South America
     coatings and paper                           BASF now becomes global            Polymerization plant with a
  Production startup: 2014                        supplier of lithium-ion battery     capacity of 20,000 metric tons
                                                   electrolyte formulations
 BASF 2nd Quarter 2012 Analyst Conference Call                                                                          4
                                        Page 7
BASF 2nd Quarter 2012 Analyst Conference Call                  July 26, 2012



[Chart 4: Important milestones in Q2 2012]

In the second quarter, we achieved several important milestones:

 With its robust local industries, India is set to become a pillar of
  growth in Asia Pacific. In order to ensure local supply for growing
  markets and industries we have decided to invest 150 million
  euros in a chemical production site in Dahej, on the West coast of
  India. The new site will be an integrated hub for polyurethane
  manufacturing and also host production facilities for care
  chemicals and polymer dispersions for coatings and paper. The
  startup of production is planned for 2014.



 The acquisition of Novolyte Technologies was the latest in a
  series of strategic steps to strengthen our technology position in
  battery materials. The integration of Novolyte’s electrolyte
  formulation activities now positions BASF as global supplier of
  lithium-ion battery electrolytes with production sites in Europe, the
  United States and Asia Pacific.


 In Brazil, we acquired the polyamide polymer business of
  Mazzaferro Group. We are thus further strengthening our
  production presence with regard to engineering plastics and
  polyamide polymers in South America, where demand for
  polyamide in the automotive and extrusion industries is growing
  strongly.
                                                                        Page 8
BASF 2nd Quarter 2012 Analyst Conference Call                                                        July 26, 2012




 Outlook 2012 confirmed

  Outlook 2012
   For the FY 2012, BASF aims to exceed the record levels of sales and EBIT before special
    items achieved in 2011
   BASF will strive again to earn a high premium on cost of capital
   Chemical businesses:
      •     Given the weak demand outlook, we expect volumes to be flat in H2 2012 vs. H1 2012
      •     In 2012, EBIT before special items is expected to come in below the level of 2011

  Revised assumptions 2012
   GDP:                   +2.3% (before: 2.7%)
   Industrial production:                       +3.4% (before: 4.1%)
   Chemical production:                         +3.5% (before: 4.1%)
   US$/Euro:                                    1.30   (unchanged)
   Oil price (US$/bbl):                         110    (unchanged)

 BASF 2nd Quarter 2012 Analyst Conference Call                                                   5
                                        Page 9
BASF 2nd Quarter 2012 Analyst Conference Call                July 26, 2012



[Chart 5: Outlook 2012 confirmed]


In our last quarterly conference call on April 27, we reiterated our
full year ambitions to exceed the previous year’s record levels of
sales and EBIT before special items. In the first half of 2012, we
were able to surpass the exceptionally high sales and earnings
levels of 2011.

However, the recent weakening of the global economy, which we
see reflected in our order books, led us to be more cautious in our
2012 macroeconomic assumptions. For 2012, we now expect global
GDP to expand only by 2.3 percent, down 0.4 percentage points
from our previous assumption. Industrial production we now see at
3.4 percent and chemical production at 3.5 percent, a reduction of
0.7 and 0.6 percentage points respectively.

Our assumptions for the Brent oil price at 110 US dollars per barrel
and the dollar/euro exchange rate at 1.30 remain unchanged.

Given the weak demand outlook, we now expect volumes in our
chemical businesses to be flat in the second half of this year
compared to the first half. Consequently, EBIT before special items
in our chemical businesses for the full year 2012 is expected to
come in below the level of 2011.

How is BASF addressing these challenges and the significant
political and economic uncertainties? First and foremost, it is our
objective to protect margins and to create value for our investors.

Our operational excellence program STEP which we announced in
November 2011 is on track to deliver one billion euros of earnings
contribution annually by the year 2015. Wherever possible we will
                                        Page 10
BASF 2nd Quarter 2012 Analyst Conference Call     July 26, 2012
                                        Page 11
BASF 2nd Quarter 2012 Analyst Conference Call              July 26, 2012



accelerate actions and evaluate our cost base and expenditures.
We are continuing to optimize our working capital as demonstrated
by the strong cash flow development in the second quarter. Due to
the uncertainty around the development of business in Asia, we will
slow down the planned build-up in personnel, particularly in the
emerging markets.



For BASF Group overall, our target is unchanged: we aim to exceed
the 2011 record levels in sales and EBIT before special items in
2012. Furthermore, we expect to again earn a high premium on our
cost of capital.



With this I’ll hand over to Hans.
                                                                             Page 12
BASF 2nd Quarter 2012 Analyst Conference Call                                                                                      July 26, 2012




 Chemicals
 Earnings impacted by weaker margins throughout the portfolio

 Q2’12 segment sales (million €) vs. Q2’11                                 EBIT before special items (million €)

 Intermediates                                       Inorganics 426
                                                               +21%          800
 763                                                                                 674
 +10%                                                                                       621
                                                                             600
                                                                                                            467
                               €3,348                                                               381
                                                                                                                      436
                                                                             400
                                -1%
                                                                             200
                                                     Petrochemicals
                                                              2,159              0
                                                               (8%)                  Q2     Q3         Q4   Q1           Q2

                                                                                           2011                   2012



 Sales development
  Period                                         Volumes              Prices               Portfolio              Currencies
  Q2’12 vs. Q2’11
                                                 
                                                     (14%)
                                                                      
                                                                          (2%)               10%                   5%



 BASF 2nd Quarter 2012 Analyst Conference Call                                                                                 6
                                        Page 13
BASF 2nd Quarter 2012 Analyst Conference Call                 July 26, 2012



Dr. Hans-Ulrich Engel

Good morning ladies and gentlemen.
Let me highlight the financial performance of each segment in more
detail and focus on the respective business developments in
comparison to the second quarter of 2011.


[Chart 6: Chemicals – Earnings impacted by weaker margins
throughout the portfolio]

Sales in the Chemicals segment slightly declined mainly due to
lower volumes, plant turnarounds and the effects of an earnings
neutral swap agreement for different grades of propylene in the US.
As you might recall, since Q3 2011 we now swap like-for-like
propylene which does not show up as sales anymore. Feedstock
sales to Styrolution and to the recently divested fertilizer business
contributed positively to the topline. EBIT before special items
declined significantly due to lower margins.

 In Petrochemicals, sales decreased due to weakening demand
  in the course of the quarter. The scheduled eight week
  turnaround of our cracker in Port Arthur, Texas, negatively
  impacted volumes. Raw material prices started to drop from
  record levels and consequently prices for all product lines went
  down. As expected, margins were under pressure. This led to a
  significant drop in earnings.
                                        Page 14
BASF 2nd Quarter 2012 Analyst Conference Call     July 26, 2012
                                        Page 15
BASF 2nd Quarter 2012 Analyst Conference Call                   July 26, 2012



 Sales in Inorganics increased significantly driven by feedstock
  sales to the divested fertilizer activities as well as the startup of a
  new sodium methylate plant in Brazil. EBIT before special items
  came in above the previous year’s quarter.

 In Intermediates, strong demand from important customer
  industries, such as agrochemicals and plastics, as well as positive
  currency impacts resulted in significantly higher sales.
  Nevertheless, margins were under pressure as rising costs for
  key raw materials could not be fully compensated by higher
  prices. Accordingly, earnings came in below Q2 2011.
                                                                            Page 16
BASF 2nd Quarter 2012 Analyst Conference Call                                                                               July 26, 2012




 Plastics
 Sequential earnings improvement in challenging environment


 Q2’12 segment sales (million €) vs. Q2’11                              EBIT before special items (million €)

 Polyurethanes                                                                 383
                                                                        400
 1,580
                                                                                      317
 +5%
                                                                                                                  256
                               €2,878                                                                219
                                                                        200
                                +2%                                                           110

                                                       Performance
                                                          Polymers        0
                                                              1,298            Q2     Q3      Q4     Q1           Q2
                                                               (2%)                  2011                  2012



 Sales development
  Period                                         Volumes              Prices          Portfolio        Currencies
  Q2’12 vs. Q2’11
                                                 
                                                     (5%)              0%              1%                  6%



 BASF 2nd Quarter 2012 Analyst Conference Call                                                                          7
                                        Page 17
BASF 2nd Quarter 2012 Analyst Conference Call                 July 26, 2012



[Chart 7: Plastics – Sequential earnings improvement in
challenging environment]

Sales in Plastics were slightly higher compared to a strong second
quarter in 2011. Favorable exchange rates were a strong support.
Continued weak demand for polyamide precursors resulted in lower
volumes. Overall, EBIT before special items was considerably down
but improved compared to Q1 2012.

 In Performance Polymers, sales remained below the prior year’s
  quarter. Polyamide precursors were impacted by lower textile
  fiber demand in Asia. Engineering plastics benefitted from healthy
  demand from the automotive industry in North America and Asia.
  Based on lower volumes and lower capacity utilization, EBIT
  before special items was significantly below last year.

 Sales in Polyurethanes increased. Lower volumes in TDI and
  MDI were mostly a result of scheduled turnarounds at several
  sites. While volumes went down for basic products, prices could
  be partially increased. Specialties were driven by strong demand
  from the automotive sector. EBIT before special items was slightly
  below the level of the previous year’s quarter due to the
  turnarounds and higher raw material costs.
                                                                             Page 18
BASF 2nd Quarter 2012 Analyst Conference Call                                                                                July 26, 2012




 Performance Products
 Higher prices could not fully compensate weak demand vs.Q2 ‘11


 Q2’12 segment sales (million €) vs. Q2’11                              EBIT before special items (million €)

 Care Chemicals                                        Performance
                                                                        600
 1,237                                                   Chemicals             513
 (9%)                                                          944                   440              452          446
                                                              +4%       400
 Nutrition                     €4,122
 & Health                       +1%                                                             220
 509                                                                    200
 +6%
                                                        Dispersions
 Paper Chemicals                                        & Pigments        0
 427                                                          1,005            Q2     Q3        Q4    Q1           Q2
 +2%                                                           +7%                   2011                   2012



 Sales development
  Period                                         Volumes              Prices          Portfolio         Currencies
  Q2’12 vs. Q2’11
                                                 
                                                     (5%)              1%                 0%                 5%



 BASF 2nd Quarter 2012 Analyst Conference Call                                                                           8
                                        Page 19
BASF 2nd Quarter 2012 Analyst Conference Call                 July 26, 2012



[Chart 8: Performance Products – Higher prices could not fully
compensate weak demand vs. Q2 ‘11]

Sales in the Performance Products segment came in slightly
higher. Volumes were down due to a generally weaker economic
sentiment. However, we were able to increase prices, and we
profited from currency tailwinds. Earnings were significantly down
due to margin pressure given weak demand and higher raw material
prices.

 In Dispersions & Pigments, positive currency effects and slightly
  increased volumes resulted in higher sales. In North America,
  sales increased significantly driven by strong demand and higher
  prices. Europe experienced lower volumes mostly due to weaker
  demand for pigments. EBIT before special items was down mainly
  due to an unfavorable product mix.

 In Care Chemicals, sales declined as a result of cautious
  customer behavior in anticipation of falling raw material prices.
  Consequently, volumes were below the previous year. Margins
  were under pressure. Hence, EBIT before special items was
  down significantly.

 In Nutrition & Health, sales increased in all businesses and
  regions except for Europe. Overall volumes were in line with Q2
  2011. Favorable exchange rate effects and price increases
  positively contributed to the topline. As a result of higher raw
  material costs, earnings could not be maintained at the previous
  year’s level.
                                        Page 20
BASF 2nd Quarter 2012 Analyst Conference Call     July 26, 2012
                                        Page 21
BASF 2nd Quarter 2012 Analyst Conference Call               July 26, 2012



 Despite challenging market conditions sales in Paper Chemicals
  increased, thanks to slightly higher prices and a positive currency
  development. Volumes, though, were negatively impacted by
  measures to streamline our portfolio. Nevertheless, EBIT before
  special items came in higher mainly due to our continuing
  restructuring efforts towards fixed cost reduction.

 In Performance Chemicals, sales rose due to successful price
  increases as well as currency impacts. Volumes were down due
  to weaker demand. Earnings were up.
                                                                             Page 22
BASF 2nd Quarter 2012 Analyst Conference Call                                                                                       July 26, 2012




 Functional Solutions
 Demand from the automotive industry remained strong


 Q2’12 segment sales (million €) vs. Q2’11                                 EBIT before special items (million €)

 Catalysts                                           Construction
                                                                             200
 1,620                                                 Chemicals                      167    162
 +8%                                                          621                                            148
                                                                             150                                       134
                                                             +8%
                               €2,974                                                                   88
                                                                             100
                                +8%
                                                                                 50

                                                           Coatings               0
                                                                733                   Q2     Q3         Q4   Q1        Q2
                                                               +6%                          2011                    2012



 Sales development
  Period                                         Volumes              Prices                Portfolio              Currencies
  Q2’12 vs. Q2’11                                  0%
                                                                      
                                                                          (1%)               3%                     6%



 BASF 2nd Quarter 2012 Analyst Conference Call                                                                                  9
                                        Page 23
BASF 2nd Quarter 2012 Analyst Conference Call               July 26, 2012



[Chart 9: Functional Solutions – Demand from the automotive
industry remained strong]

In our Functional Solutions segment, sales increased mainly due
to portfolio effects and currency tailwinds. Demand from the
construction industry in North America rose slightly. Earnings
though declined due to higher raw material costs and lower results
in precious metal trading.

 Catalysts’ sales rose mainly attributable to continuous strong
  demand for mobile emission and chemical catalysts. Slightly
  higher volumes, however, could not fully compensate for the high
  raw material costs as well as the lower trading results in precious
  metals. As a result, earnings were below the strong quarter of the
  previous year.

 Sales in Construction Chemicals were up due to successful
  price increases as well as positive exchange rate and portfolio
  effects. Volumes increased in North America and Asia but
  remained below the previous year’s quarter in Europe. Earnings
  before special items were up given higher prices and improved
  margins.

 In Coatings, we saw strong demand for automotive OEM
  coatings and industrial coatings. Margins were mostly maintained
  thanks to successful price increases in all regions and the
  optimization of our raw materials portfolio. EBIT before special
  items however, came in slightly lower than in the previous year’s
  quarter due to higher fixed costs.
                                                                     Page 24
BASF 2nd Quarter 2012 Analyst Conference Call                                                                    July 26, 2012




 Agricultural Solutions
 Record Q2 sales and earnings driven by strong demand


 Q2’12 segment sales (million €) vs. Q2’11                      EBIT before special items (million €)

                                                     1,467
                        1,205
                                                                                                 414
 1.000                                                           400
                                                                             331


   500                                                           200



      0                                                              0
                            Q2                           Q2                  Q2                   Q2

                         2011                         2012                  2011                 2012



 Sales development
  Period                                         Volumes      Prices          Portfolio        Currencies
  Q2’12 vs. Q2’11                                 14%         2%                 0%             6%



 BASF 2nd Quarter 2012 Analyst Conference Call                                                              10
                                        Page 25
BASF 2nd Quarter 2012 Analyst Conference Call                 July 26, 2012



[Chart 10: Agricultural Solutions – Record Q2 sales and
earnings driven by strong demand]

Our Agricultural Solutions segment delivered an outstanding
quarter, with sales increasing by 22 percent year over year. High
demand for our innovative products in all indications and in all
regions drove significant volume growth. The positive pricing trend
was intact for the fourth quarter in a row, and the stronger US dollar
led to tailwind on currency.

EBIT before special items reached a new second quarter record,
putting year-to-date earnings ahead of the full-year 2011 figure.

In Europe, positive business momentum continued especially in
Central and Eastern Europe, and in the United Kingdom. Our
Clearfield herbicides made a strong contribution, and our new
fungicide Xemium is living up to its blockbuster potential. Moreover,
last week it got approved for use in crop protection products in the
EU-27, which will help us to obtain registrations for Xemium-
containing products in additional countries. In North America,
significant sales growth was supported by excellent demand for our
Plant Health products and for herbicides, mainly Kixor. The
prevailing drought condition in the Midwest USA did not impact our
sales for the quarter, but is certainly something to watch out for.
Sales in South America also developed very well, as high demand
for our Fipronil insecticide and for F500 overcompensated weather
challenges affecting the South of Brazil and Argentina. In Asia,
sales were strongly up versus the previous year’s quarter, driven by
higher herbicide sales in India and by strong fungicide sales across
the region.
                                                                    Page 26
BASF 2nd Quarter 2012 Analyst Conference Call                                                                                        July 26, 2012




 Oil & Gas
 Strong growth supported by oil production in Libya


 Q2’12 segment sales (million €) vs. Q2’11                        EBIT bSI/Net income (million €)

 Exploration &
                                                                  1,000
 Production                                                                                                 880
 1,251                                                             800
 +122%
                               €3,585                              600                                      793

                               +46%                                400       332
                                                 Natural Gas       200       269
                                                     Trading                                 257                          213
                                                                              63                             87
                                                       2,334           0
                                                                           Q2/2011                        Q2/2012
                                                       +23%
                                                                           Exploration & Production
                                                                           Non compensable oil taxes
                                                                           (Q2 2011: €0 million; Q2 2012: €445 million)

                                                                           Natural Gas Trading             Net income
 Sales development
  Period                                                       Volumes          Prices/Currencies                   Portfolio
  Q2’12 vs. Q2’11                                               31%                    14%                          1%



 BASF 2nd Quarter 2012 Analyst Conference Call                                                                                  11
                                        Page 27
BASF 2nd Quarter 2012 Analyst Conference Call               July 26, 2012



[Chart 11: Oil & Gas – Strong growth supported by oil
production in Libya]

Sales in Oil & Gas continued to grow strongly driven by higher
volumes both from Exploration & Production as well as Natural Gas
Trading. EBIT before special items increased significantly. Net
income came in slightly below 2011 due to higher taxes.

 In Exploration & Production, sales were up by 122 percent
  mainly due to the resumption of oil production in Libya. Thanks to
  additional capacity in the export pipeline we could temporarily
  raise our oil production in Libya from an average of 70,000 barrels
  in Q1 up to roughly 80,000 barrels of oil per day in Q2. Strong
  volumes and higher prices in euro led to substantially higher
  earnings.

 Sales in Natural Gas Trading increased strongly due to higher
  prices and volumes. Earnings grew significantly due to higher
  volumes and prices as well as due to concession income from the
  OPAL pipeline.
                                                      Page 28
BASF 2nd Quarter 2012 Analyst Conference Call                                 July 26, 2012




 Review of “Other”

  Million €                                          Q2 2012   Q2 2011
  Sales                                                1,107     1,714
  thereof Styrenics                                        -       811
  EBIT before special items                             (76)     (163)
  thereof Corporate research                            (95)      (87)
          Group corporate costs                         (61)      (59)
          Currency results, hedges and other              52     (118)
          valuation effects
          Styrenics, fertilizers, other businesses       13        76
  Special items                                        (116)       27
  EBIT                                                 (192)     (136)




 BASF 2nd Quarter 2012 Analyst Conference Call                           12
                                        Page 29
BASF 2nd Quarter 2012 Analyst Conference Call                  July 26, 2012



[Chart 12: Review of “Other”]

Sales in “Other” decreased significantly due to the divestment of
our styrenics activities into the Styrolution joint venture as well as
the sale of our fertilizer business.

EBIT before special items improved substantially because of
positive valuation effects associated with the long-term-incentive
program for executives. Special items in Other included provisions
for potential asset devaluations and restructuring costs which we
will allocate to the respective businesses as soon as the measures
are implemented.
                                                         Page 30
BASF 2nd Quarter 2012 Analyst Conference Call                                                         July 26, 2012




 Strong operating cash flow at €3.5 billion

  Million €                                                           H1 2012         H1 2011
  Cash provided by operating activities                                  3,460           3,038
  thereof Changes in net working capital                                 (651)         (1,178)
  Cash provided by investing activities                                (1,084)              81
  thereof Payments related to tangible / intangible assets             (1,669)         (1,265)
  thereof Acquisitions / divestitures                                      430              32
  Cash used in financing activities                                    (2,198)         (2,764)
  thereof Changes in financial liabilities                                 269           (486)
          Dividends                                                    (2,462)         (2,278)

   First half 2012
   Increase in net working capital by €0.7 billion
      Free cash flow amounted to €1.8 billion
      Dividend payments to BASF SE shareholders €2.3 billion
      Net debt decreased by €0.7 billion to €11.5 billion in comparison to H1 2011

 BASF 2nd Quarter 2012 Analyst Conference Call                                                   13
                                                                                   Page 31
BASF 2nd Quarter 2012 Analyst Conference Call                                                     July 26, 2012



[Chart 13: Strong operating cash flow at €3.5 billion ]

Let me now conclude with our cash flow for the first half of 2012.

Cash provided by operating activities came in at 3.5 billion euros in
the first half of 2012 and we recorded a strong free cash flow of 1.8
billion euros. Net working capital increased by 0.7 billion euros.

Cash used in investing activities amounted to 1.1 billion euros. As
planned, capex was up by 32% at 1.7 billion euros. The net
proceeds from acquisitons and divestitures amounted to 430 million
euros. This included the proceeds from the sale of our fertilizer
assets in Q1 as well as 278 million euros which we paid for various
smaller acquisitions.

Financing activities led to a cash outflow of 2.2 billion euros, mainly
due to dividend payments to shareholders of BASF SE and minority
shareholders in group companies.

Net debt decreased by 0.7 billion euros to 11.5 billion euros in
comparison to the end of the first half in 2011.



Thank you for your attention. We are now happy to take your

questions.




                                BASF 4Q/FY’2010 Conference | February 24th, 2011             40

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:5
posted:12/5/2012
language:Unknown
pages:31