Basf Se · XETR:BAS

Basf — Investor Presentation (September 2021)

33 slides from Basf's investor presentation, Sep 27, 2021

  1. Slide 1: BASF Battery Materials

    BASF Battery Materials Dr. Markus Kamieth Member of the Board of Executive Directors BASF Investor Update, September 27, 2021

  2. 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

  3. Slide 3: BASF Battery Materials

    BASF Battery Materials The automotive industry 1 transformation is accelerating Electromobility is the biggest 2 growth opportunity in chemicals 3 CAM is key to electromobility BASF has a clear strategy to 4 become a leading CAM player 5 Financials and key takeaways 2 BASF Investor Update, September

  4. Slide 4: The automotive industry is in the middle of a major transformation towards electromobility

    The automotive industry is in the middle of a major transformation towards electromobility Powertrain development Regional BEV split Light-duty vehicle production volume (million units) % 120 100 13% 14% 80 60 34% 40 >70% >30% 20 38% 0 2021 2025 2030 2035 2040 2030 ICE Full HEV (Li-ion only) PHEV BE

  5. Slide 5: Major countries and OEMs have determined that battery powered vehicles are the key technology

    Major countries and OEMs have determined that battery powered vehicles are the key technology for the next decades Examples NEV Technology Roadmap 2.0 California and twelve VW aims to increase share From 2025 onwards, all discusses target of 50% of new other US states announce to 50% BEVs by 2030 an

  6. Slide 6: BASF Battery Materials

    BASF Battery Materials The automotive industry 1 transformation is accelerating Electromobility is the biggest 2 growth opportunity in chemicals 3 CAM is key to electromobility BASF has a clear strategy to 4 become a leading CAM player 5 Financials and key takeaways 5 BASF Investor Update, September

  7. Slide 7: BASF is the largest chemicals supplier to the automotive industry with a proven track record

    BASF is the largest chemicals supplier to the automotive industry with a proven track record to outgrow the market BASF Group sales 2020 Industry structure1 BASF products  Coatings  Fuel additives and  Coolants and brake fluids lubricants ~30% ~30% OEM  Plastics for OEMs with  Cellasto own proc

  8. Slide 8: The chemical content per car is higher in a BEV compared to ICE, with CAM as largest growth opportunity

    The chemical content per car is higher in a BEV compared to ICE, with CAM as the single largest growth opportunity Chemical content per car Main contributors1 difference in € per car vs. conventional ICE BEV x2.5 Powertrain2 Coolants Plastics Coatings The cathode active material (CAM) as key compone

  9. Slide 9: The market for CAM will grow by ~21% per year and reach 4,200 kt by 2030

    The market for CAM will grow by ~21% per year and reach a total size of 4,200 kt by 2030 Global CAM market forecast1 kt 4,200 10% Americas Rapid growth of global EV demand … CAGR ~21% 35% Europe … accelerates the need for 2,000 global CAM capacity investments and … 55% Asia 750 … drives demand for b

  10. Slide 10: BASF Battery Materials

    BASF Battery Materials The automotive industry 1 transformation is accelerating Electromobility is the biggest 2 growth opportunity in chemicals 3 CAM is key to electromobility BASF has a clear strategy to 4 become a leading CAM player 5 Financials and key takeaways 9 BASF Investor Update, September

  11. Slide 11: Within the electrified powertrain, CAM allows for the greatest level of differentiation

    Within the electrified powertrain, CAM allows for the greatest level of differentiation and holds the largest material value Driving Fast range charge Lifetime Performance, ESG profile safety & cost € 30%1 80%1 Safety Low cost 40%1 60%1 Battery % Cell % of CAM % of Metal % of of car cost battery cos

  12. Slide 12: Among the CAM options, high-Ni NCM is the superior chemistry

    Among the CAM options, high-Ni NCM is the superior chemistry and will lead the market going forward CAM chemistry-mix volume forecast in BEVs Cathode-type performance in BEVs1 kt Specific power Thermal Specific stability energy LFP NCM-307 Nickel containing NCA Performance Cost Life span NCM and NCA

  13. Slide 13: Base metals make up ~60% of the CAM cost, therefore low cost and reliable sourcing is imperative

    Base metals make up ~60% of the CAM cost, therefore low cost and reliable sourcing is imperative to achieve competitiveness Cost break-out of the value chain1 €/kg CAM  Class 1 nickel will be short after 2025 Ni 28 Ni  New projects are expensive with Nickel 58.693 lengthy ramp-up times Li Li 3  T

  14. Slide 14: BASF Battery Materials

    BASF Battery Materials The automotive industry 1 transformation is accelerating Electromobility is the biggest 2 growth opportunity in chemicals 3 CAM is key to electromobility BASF has a clear strategy to 4 become a leading CAM player 5 Financials and key takeaways 13 BASF Investor Update, Septembe

  15. Slide 15: Already today, BASF is at the forefront of CAM innovation

    Already today, BASF is at the forefront of CAM innovation, meeting market and specific customers’ needs across the globe +15 years Experience in CAM ~1,900 employees1 Established business, development thereof ~300 scientists fully sold-out in 2021 Production capacities Battery research centers >50 c

  16. Slide 16: Four interdependent areas form the key elements of success in Battery Materials

    For BASF, four interdependent areas form the key elements of success in the global Battery Materials business We will offer our CAM Metals customers a seamless integration and a superior value proposition across PCAM Recycling all major regions Sustainability will be a differentiator across all four

  17. Slide 17: We combine metal sourcing by trading and recycling globally, copying the PGM business model

    We combine metal sourcing by trading and recycling globally, copying the business model established successfully for PGMs Optimized base metal management BASF End-to-end optimized metals supply chain Mines Primary sourcing OEM Management Base PCAM/CAM Cell of price risk metals in production producer

  18. Slide 18: We establish a secure supply network in close proximity to our production sites

    We establish a secure supply network in close proximity to our production sites across regions Examples 3 25 Li Mn Supply agreements Lithium Manganese BASF and Nornickel join forces to 6.941 54.938 supply the battery materials market Partnerships Co Ni 27 28 S/B Balance Backward BASF and Eramet part

  19. Slide 19: Competitive recycling capabilities will be a key success factor

    Competitive recycling capabilities will be a key success factor 2023 We will close the loop to offer a best-in-class start-up of CO2 footprint while optimizing our input costs our recycling prototype plant in Schwarzheide  We offer long-standing expertise in the recycling industry. CO2 impact of me

  20. Slide 20: Four interdependent areas form the key elements of success in Battery Materials

    For BASF, four interdependent areas form the key elements of success in the global Battery Materials business We will offer our CAM Metals customers a seamless integration and a superior value proposition across PCAM Recycling all major regions Sustainability will be a differentiator across all four

  21. Slide 21: PCAM and CAM are high-performance materials customized for each customer's battery system

    PCAM and CAM are high-performance materials customized for the specific requirements of each individual customer’s battery system Diversity of CAM and application area for e-mobility Diversity of cell design Li/Mn-rich, Mid Ni CAM High Ni CAM LFP CAM (60–85% Ni) (>85% Ni) Low range Long range High p

  22. Slide 22: Product innovation enables the broadest CAM portfolio in the industry

    Product innovation enables the broadest CAM portfolio in the industry, and we continue to add new solutions + + Energy density + Cost benefit - Thermal stability Ultra-high Ni 0% 100%  Ultra-high Ni CAM, ≥220 Ah/kg  Ni >90%, Co <5% HED™ products  Up to stabilized LNO  Pushing boundaries for high

  23. Slide 23: Modularization and process innovation will further drive down the cost of PCAM and CAM production

    BASF strategies for modularization and process innovation will further drive down the cost of PCAM and CAM production Modularity and flexibility Process technology innovation  Building segments fit for purpose  Higher PCAM throughput  Low energy-consumption facilities  Improved CAM technology 

  24. Slide 24: Production assets and R&D hubs in close proximity to the most important BEV markets

    BASF has production assets and R&D hubs in close proximity to the most important BEV markets in every region Europe 2012 greenfield 2022 R&D center 2015 production First CAM under CAM precursor in Shanghai, Foundation of BASF production facility construction production China TODA Battery Materials,

  25. Slide 25: Our unique European production set-up progresses well with capacities fully contracted

    Our unique European production set-up progresses well with available capacities already fully contracted to strategic customers Refinery  PCAM plant in Harjavalta, Finland, and CAM plant in in Harjavalta Schwarzheide, Germany, will start up in 2022 Nornickel  Initial capacity of 24 kt has been ful

  26. Slide 26: With Shanshan, we reduce our time to market and gain further capacity

    With Shanshan, we reduce our time to market, gain immediate access to further capacity and bolster our R&D capabilities  BASF Shanshan Battery Materials (BASF majority- owned joint venture with Shanshan)  1,600 employees, thereof ~200 in R&D CAM + PCAM  Four production sites for CAM and PCAM in H

  27. Slide 27: We establish close customer collaborations and strategic partnerships across the battery value chain

    We establish close customer collaborations and strategic partnerships across the entire battery value chain CATL Consumer electronics Agreement on strategic Through the formation of BASF partnership signed for Shanshan Battery Materials, collaboration on CAM and we supply an extensive list of batter

  28. Slide 28: CAM products with best-in-class CO2 footprint with further reductions planned

    As a result of our holistic approach, we can offer CAM products with best-in-class CO2 footprint with further reductions planned​ Carbon intensity kg CO2e/kg BASF 30 26 25 23 20 15 13 11 10 7–9 5 16 g 14 g 8g 7g 4–6 g CO2e/km1 CO2e/km1 CO2e/km1 CO2e/km1 CO2e/km1 0 Conventional2 NCM 811 State-of-the-

  29. Slide 29: Several projects to ensure a best-in-class value chain regarding ESG criteria

    We have established several projects to ensure that the value chain we are building is best-in-class regarding ESG criteria Mine Refining We are partnering globally to ensure a resilient and sustainable metal supply chain for our customers. Our global production presence ensures customer proximity a

  30. Slide 30: BASF Battery Materials

    BASF Battery Materials The automotive industry 1 transformation is accelerating Electromobility is the biggest 2 growth opportunity in chemicals 3 CAM is key to electromobility BASF has a clear strategy to 4 become a leading CAM player 5 Financials and key takeaways 29 BASF Investor Update, Septembe

  31. Slide 31: The Battery Materials business will become a significant earnings contributor to the BASF Group

    The Battery Materials business will become a significant earnings contributor to the BASF Group >€1.5 billion sales by 2023 >10% >30% ~€3.5–4.5 billion market share EBITDA bsi margin capital expenditure >€7 billion sales targeted (excl. metals) 2022–2030 by 2030  Continue to ramp up existing sales

  32. Slide 32: BASF Battery Materials: Key takeaways

    BASF Battery Materials: Key takeaways  Best-in-class CO2 footprint  Closing the loop  Broad CAM product offering  Domestic sourcing  Strong IP position and production CAM Metals  Secure and sustainable supply  Extensive R&D capabilities Formula for success  Unique expertise in PCAM chemistry

  33. Slide 33: We create chemistry

    O- BASF We create chemistry

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