Slide 1: BASF India Limited Analysts' Meeting
BASF India Limited Analysts’ Meeting 18th September 2017
Slide 2: Disclaimer
Disclaimer Scope: Only those matters which are in public domain can be subject matter in this meeting for any clarification required Policy: As a matter of policy we do not give any prognosis about the future business situation 2
Slide 3: A year of political and economic ambiguity
A year of political and economic ambiguity Source: LinkedIn Source: LittleSteps Source: Marcotrends Brexit and US Elections – Rising trend of Protectionism Crude Oil pricing – Mostly stable within a band INR vs USD vs Euro 80 75 70 65 60 55 USD EURO Source: ET.com Source: Skymet Source: Zee Business
Slide 4: India: Short term impact due to policy changes and demonetization
India: Short term impact due to policy changes and demonetization GDP Growth - Gross value added (% y-o-y) Source: CMIE 8.7 7.3 7.6 6.8 6.7 7.6 8.2 5.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015-16 2016-17 Manufacturing growth (%) Demonetization - Impact Source: CMIE 13.2 12.7 Negative impact on Two 10.7 wheeler
Slide 5: Make in India: making the best of our manufacturing assets
Make in India: making the best of our manufacturing assets Source: BASF Source: BASF Kharagpur, West Bengal Innovation Campus, Mumbai Sixth construction chemicals plant; BASF group’s biggest investment in South operational from May16’ Asia - Inaugurated on March 3, 2017 Well-equipped concrete
Slide 6: Innovation: Crop Diversification with new launches in Agricultural Solutions
Innovation: Crop Diversification with new launches in Agricultural Solutions Basagran Adexar ® Seltima® Opera Acrisio, Merivon TynzerTM Corn Rice Wheat Grapes and Apples Launched new products for rice crop protection: Basagran, Adexar, Seltima New products driving growth in this financial year ®
Slide 7: Innovation: customized solutions for Indian market received well
Innovation: customized solutions for Indian market received well MasterSeal and MasterWeld: Sealants & Stakeholders checking MasterEase, Green Flush for Patanjali with Adhesive range MasterSeal and Master Seal ® Traffic EM MSA Solution Systems in Mumbai Low VOC paint based Elastomeric paint based on
Slide 8: Update on Goods & Service tax (GST)
Update on Goods & Service tax (GST) 8
Slide 9: Update on Goods & Service tax (GST)
Update on Goods & Service tax (GST) Early preparation 49 SAP patches released as late as June 9
Slide 10: Journey of GST
Journey of “GST” ▪ Distribution network ▪ Reconciling tax optimization ongoing credits ▪ Price negotiation ▪ Digital economy & with Vendors & data analytics Customers ▪ Day 1 critical items ▪ Working capital ▪ Agro depot optimization with past registration, tax credit credits for dealers First GST
Slide 11: Recap - Key IND AS impacts
Recap - Key IND AS impacts 11
Slide 12: Recap - Key IND AS impacts
Recap - Key IND AS impacts Nature of IGAAP IND AS Transaction Sales Net of Excise duty disclosure Gross of excise duty disclosure disclosure (excise adjusted in COGS) Forward contracts • Forwards accounted on • Forwards accounted on “net” basis “gross” basis • MTM valuation through P&L • Amortizatio
Slide 13: Performance review FY 2016-2017
Performance review FY 2016-2017 13
Slide 14: Key Business Updates
Key Business Updates Year ended 31st March 2017 ● Sluggish growth in manufacturing sector Indian ● GDP / GVA: 6.6%* for FY 2016-2017, lower credit off-take & subdued Economy investments ● Long term reforms such as demonetization & GST auger well for the economy Business ● Sales growth @ 7%, mainly d
Slide 15: Income Statement Highlights
Income Statement Highlights Financial Year ended 31st March 2017 Rs Crores Descriptions Apr -Mar Apr -Mar % Growth across 2017 2016 major business Revenue 5,526 5,157 7% units EBITDA 282 109 >100% Significant Depreciation 169 163 improvement EBIT (before excp. Items & tax) 113 (54) >100% in EBITDA
Slide 16: Segmental analysis
Segmental analysis Year ended 31st March 2017 Agricultural Solutions Revenue 8% EBIT -21% Revenue Normal monsoon driving sales growth Business risk mitigation from strategic diversification more visible (rice entry with Seltima & Basagran) Result Selling prices under pressure as competitor
Slide 17: Segmental analysis
Segmental analysis Year ended 31st March 2017 Functional Materials & Solutions Revenue Revenue 8% Performance Materials: Significant growth due to increased capacity utilisation at Dahej EBIT >100% Automotive Coatings: Muted growth due to temporary impact of demonetisation Construction che
Slide 18: Key Balance Sheet No's & Ratios
Key Balance Sheet No’s & Ratios Key Balance Sheet No’s INR in Crores Description March 2017 March 2016 Equity 1,102 1,116 Borrowings (LT & ST) 1,277 1,349 Inventory & Trade receivables 2,016 1,854 Trade payables 1,231 1,106 Fixed Assets 1,255 1,344 Key Ratios March March 2017 2016 Debt equity ratio
Slide 19: Performance review Q1 June 2017
Performance review Q1 June 2017 19
Slide 20: Income Statement Highlights
Income Statement Highlights Quarter ended 30th June 2017 Rs Crores Descriptions Apr – Apr – % Sales growth Jun 2017 Jun majorly from 2016 Agro & Performance Revenue 1,649 1,513 9% Materials EBITDA 70 83 -16% Profitability impacted due to Depreciation 39 43 margin pressures and EBIT (before excp. It
Slide 21: Summing Up
Summing Up Grow above market Improve efficiency Optimize working capital Maximize capacity utilization Innovate to meet market demands 21
Slide 22: We create chemistry
O = BASF We create chemistry