Slide 1: Analyst Conference Call Q3 2023
Analyst Conference Call Q3 2023 October 31, 2023 1 October 31, 2023 | BASF Analyst Conference Call Q3 2023
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the fu
Slide 3: Global chemical production still subdued in most regions
Q3 2023: Global chemical production still subdued in most regions Chemical production compared with prior-year quarter1 % North America EU Mainland China Asia excl. mainland China 12.6 7.3 0.4 Q3 2022 Q3 2023 -1.9 -5.4 -8.6 Q3 2022 Q3 2023 -6.6 -7.3 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Growth rates % Q3
Slide 4: Indicators for stock levels in manufacturing improved slightly in Q3 2023
Indicators for stock levels in manufacturing improved slightly in Q3 2023 Stocks of purchases per region1 Western Europe North America Asia Pacific 60 60 60 55 55 55 50 50 50 45 45 45 40 40 40 35 35 35 30 30 30 Stocks of purchases Long-term average Turning zone 1 Source: S&P Global (part of Purchasi
Slide 5: EBIT before special items of €575 million in line with analyst estimates
Q3 2023: BASF’s EBIT before special items of €575 million is in line with average analyst estimates Sales development Volumes Prices Portfolio Currency In Q3 2023, sales declined by 28.3% to €15.7 billion, Q3 2023 vs. Q3 2022 -9.4 -14.4 -0.3 -4.2 mainly due to lower prices and volumes Q3 2
Slide 6: BASF Group Q3 2023: Key financial figures
BASF Group Q3 2023: Key financial figures EBITDA before special items EBIT before special items Q3 2023 vs. Q3 2022 Q3 2023 vs. Q3 2022 €1,545 million €575 million -33.5% -57.3% Net income Operating cash flow Q3 2023 vs. Q3 2022 Q3 2023 vs. Q3 2022 -€249 million €2,686 million . +16.7% 6 October 31,
Slide 7: Earnings in Agricultural Solutions and Surface Technologies increased
Q3 2023: Earnings in Agricultural Solutions and Surface Technologies increased; remaining segments recorded a decline versus PYQ BASF Industrial Surface Nutrition Agricultural BASF Group Chemicals Materials Solutions Technologies & Care Solutions Other Group EBIT before special items Q3 2023 vs. Q3
Slide 8: Strong cash flow generation in Q3 2023
Strong cash flow generation in Q3 2023 Q3 2023 Q1–Q3 2023 Q3 2023 vs. Q3 2022 Million € Million € Cash flows from operating activities 3,000 4,000 3,848 improved by €384 million to €2.7 billion 2,686 3,500 Increased focus on reducing inventory 2,500 levels pays off; changes in net working 3,000
Slide 9: Strong balance sheet
Strong balance sheet Balance sheet September 30, 2023, vs. December 31, 2022 Billion € 82.6 Total assets decreased by 84.5 82.6 84.5 €1.9 billion to €82.6 billion Net debt amounted to €18.9 billion – an increase compared with year-end 47.1 40.3 40.9 2022 but a decrease compared with Equity 48.2
Slide 10: Increasing competitiveness: on track to reduce annual costs by ~€1.1 billion
Increasing competitiveness: Together with initiatives in global service units on track to reduce annual costs by ~€1.1 billion by end of 2026 Expected annual Expected annual cost savings cost savings by increased to: Adaptation the end of 2026 >€600 million1 Cost savings of Verbund confirmed: (f
Slide 11: Increased focus on capex efficiency: capex reduced by ~€4.0 billion
Increased focus on capex efficiency: Capex will be reduced by ~€4.0 billion in the period from 2023 to 2027 Capex budget Billion €, 2023–2027 30 28.8 Capex budget of €28.8 billion for 2023 to 2027 originally -1.0 communicated in February 2023 will be reduced to 24.8 -3.0 €24.8 billion 20 In 2023
Slide 12: Verbund site project in Zhanjiang is well on track
BASF’s Verbund site project in Zhanjiang is well on track Project execution on time and in budget Second downstream plant (TPU) successfully started up in September 2023 June 2022 Construction activities stepped up, with currently more than 15,000 construction workers on site every day Stringe
Slide 13: Status update on Wintershall Dea
Status update on Wintershall Dea BASF stands by its strategic goal of selling its 72.7% share in Wintershall Dea and continues to evaluate monetization options Wintershall Dea is currently in the process of legally separating its Russia-related business; the separation is planned to be completed
Slide 14: Outlook 2023 for BASF Group
Outlook 2023 for BASF Group Outlook 2023 Sales €73 billion – €76 billion EBIT before special items €4.0 billion – €4.4 billion ROCE 6.5% – 7.1% CO2 emissions 17.0 – 17.6 million metric tons Underlying assumptions Growth in gross domestic product: 2.0% Growth in industrial production: 1.0% Grow
Slide 15: BASF - We create chemistry
O- BASF We create chemistry