Basf Se · XETR:BAS
Basf — Investor Day (September 2024)
19 slides from Basf's investor day presentation, Sep 27, 2024
Slide 1: Coatings
Coatings Anup Kothari Member of the Board of Executive Directors BASF Capital Markets Day, September 2024
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: Coatings: Leading surface solution provider in mobility applications
Coatings Leading surface solution provider in mobility applications €4.4 billion sales in 2023 Surface treatment Automotive coatings Refinish coatings Decorative paints 23%1 48%1 17%1 12%1 We create value by providing solutions based on deep application and Role in BASF portfolio formulation experti
Slide 4: Coatings has outgrown the market and generated strong earnings
Coatings has outgrown the market and generated strong earnings Sales EBITDA bsi 2019 – 2023 Resilient performance Billion € despite weakness of the automotive sector and raw >4% 4.5 . 0.8 . material inflation Ø annual sales growth 3.0 . 0.5 . Above-market 12% volume growth Ø EBITDA bsi margin Increa
Slide 5: We will further unlock the value of our Coatings business
We will further unlock the value of our Coatings business We will build on the high earnings level achieved in 2023 … … to unlock standalone value Targets 20281 16% EBITDA bsi margin Leverage differentiated steering approach Cash conversion2 Above-market volume growth increase to ~70% Operationa
Slide 6: Our strategic priorities for 2024 – 2028
Our strategic priorities for 2024 – 2028 1 Grow with leading 2Drive cost 3 Asset optimization and 4 Value-creating exit for market positions efficiencies capital discipline decorative paints Value creation share1 Value creation share1 Value creation share1 Value creation by unlocking higher implied
Slide 7: We have a focused portfolio with strong brands and leading market positions
Growth with leading positions 1 We have a focused portfolio with strong brands and leading market positions Surface treatment Automotive coatings Refinish coatings Decorative paints Our businesses are in leading market positions… #2 #1 #3 #1 … and play in large markets with significant entry barrier
Slide 8: Key market trends are shaping customer needs
Growth with leading positions Key market trends are shaping customer needs Surface treatment Automotive coatings Refinish coatings Key drivers: Car build rate, aerospace Key driver: Car build rate Key drivers: Mileage driven, collision rates builds, general industry growth Shift in OEM lands
Slide 9: We win by providing solutions for our customers
Growth with leading positions We win by providing solutions for our customers We combine our technical, innovative and digital know-how to create value for our customers Trusted brands reliably serving >50,000 Deep know-how and technical expertise of customers customer processes AUROOM® Strong local
Slide 10: Growth lever: Our strong positioning and supply share with NEV OEMs in China enables high growth
Growth | Automotive coatings Growth lever: Our strong positioning and supply share with NEV OEMs in China enables high growth Automotive market Greater China1 We are #1 in EV globally and #1 in China Million produced units Our leading position is based 32.3 on … 28.8 Strong long-standing relationshi
Slide 11: Growth lever: Winning in aerospace to leverage above-market growth
Growth | Surface treatment Growth lever: Winning in aerospace to leverage above-market growth Long-term experience in the aerospace industry with high-performance products in a global network with local support Aerospace market development1 Units built CAGR ~9% 2024 2028 Key technologies for airpl
Slide 12: Growth lever: Increase market share by winning with the right customers and in growing segments
Growth | Refinish coatings Growth lever: Increase market share by winning with the right customers and in growing segments Winning with multi-shop operators and Drive value-for-money brands in the strategic partners United States and China Well-positioned with MSOs as volume drivers in Fastest growi
Slide 13: Growth lever: Our unique sustainable portfolio positioning enables growth and drives industry transformation
Growth | Refinish coatings Growth lever: Our unique sustainable portfolio positioning enables growth and drives industry transformation Glasurit® 100 line offers productivity and performance increases at best-in-class sustainability attributes Refinish coatings net sales ≤40% less process time CAGR
Slide 14: We drive cost efficiencies and operational excellence along the entire value chain
Cost efficiencies 2 We drive cost efficiencies and operational excellence along the entire value chain to reduce inflation impacts We leverage automation and digitalization to reduce cash fixed cost and enhance customer experience Procurement Production Supply Chain Technology Sales AI assistance fo
Slide 15: We are disciplined in capital steering with investments focused on growth in Asia
Capital discipline 3 We are disciplined in capital steering with investments focused on growth in Asia and optimization in Europe and South America Grow with high Capital Efficiency We are optimizing our automotive OEM coatings production network to adapt Capital allocation in 2024 – 2028 will shift
Slide 16: Our decorative paints business is #1 in Brazil
Portfolio | Decorative coatings 4 Our decorative paints business is #1 in Brazil Based on our strong brands and business model, we are #1 in the premium segment in Brazil, while gaining market share in the standard segment Brazilian market of ~€2 billion #1 position in the premium segment #1 brand i
Slide 17: Divestment of decorative paints to unlock value from implied market valuation
Portfolio | Decorative coatings Divestment of decorative paints to unlock value from implied market valuation Divestment process expected to start in Q1 2025 Key Facts Leveraging strong market momentum #1 in Brazilian market of with high interest in the business from other ~€2 billion parties
Slide 18: We are creating value in Coatings by focusing on growth and efficiencies
We are creating value in Coatings by focusing on growth and efficiencies 1 Grow with leading market 2028 targets1 positions 2 Drive cost efficiencies 16% EBITDA bsi margin 3 Strong capital discipline Cash conversion increase to ~70% 4 Strive for value-creating exit of EBITDA bsi increase by ~70% dec
Slide 19: BASF - We create chemistry
O- BASF We create chemistry