basf plastics business realignment
TRANSCRIPT
Strategic alignment of BASF’s plastics business
Dr. Martin Brudermüller Vice Chairman of the Board of Executive Directors of BASF SE
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We create chemistry for a sustainable future
We add value as one company
We innovate to make our customers more successful
We drive sustainable solutions
We form the best team
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From molecules to materials & solutions
Chemistry as a key technology and interdisciplinary (physics, biology, engineering, etc.)
Development closer to and with customers
New applications with improved properties from established materials
New molecules
Improvedapplications
Functional materials & solutions
1960 1970 1980 1990 2000 2010 2020
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Year
Global megatrends call for plastic solutions
Opportunities for plasticsMegatrends
Lower emissions through reducing weight of automotives
High-efficiency insulation for buildings
Renewable energy such as wind power and solar
High-performance plastic additives to improve properties
Biobased plastics
Resources, environment and climate
Food and nutrition
Quality of life
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million metric tons
Continuing strong growth in global demand for plastics
Includes thermoplastics, polyurethanes, thermosets, elastomers, adhesives, coatings and sealants, PP-fibers; not including: PET, PA and polyacrylic fibers
2012 demand by region
Source: PlasticsEurope
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50
100
150
200
250
300
1950 1960 1970 1980 1990 2000 2010
* Not including other plastics (47 million metric tons)
Global demand
23.4%
19.9%
23.9%
20.7%
12.1% 100%241 million metric tons*
China WorldAsiaPacific(not incl. China)
Europe(incl. CIS)
North America
South America,
Middle East, Africa
4Source: PlasticsEurope
Strategic measuresin BASF’s plastics business
Organizational realignment of BASF’s plastics business
Systematic entry into new growth markets like wind energy
Innovative use of renewable feedstock
Innovation as a driver of growth and differentiation
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Organizational realignment of BASF’s plastics business
Petrochemicals
e.g. Amines
e.g. TDI
e.g. monomers
e.g. epoxy systems
e.g. PU systems
e.g. Ultramid®
Monomers
Intermediates
Petrochemicals
Commodities Functional Materials & Solutions
Performance Materials
Polyurethanes
Performance Polymers
Inorganics
Intermediates
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Since January 2013
Until 2012
Strengthening our Production Verbundand getting closer to customers through innovation
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Custom-built solutions
Technical service
Joint development projects
Intensive research
Specialties
Cost efficiency and supply security
Economies of scale
Technology leadership
Integrated production
Commodities
Strength through world scale Strength through customer closeness
Investments and activities in the downstream specialty business
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Cast elastomers
Polyamidepolymers
Alliance with TenCate& Owen Corning
TPU Lemförde
Ultrason®
PUsystem houses
Styrolution
ecoflex®Lightweight composites team
Neopor ®
Engineeringplastics
Segment and reporting structure focussince January 2013
Crop Protection
PerformanceProducts
Dispersions & Pigments
Care Chemicals
Functional Materials & Solutions
AgriculturalSolutions
PerformanceChemicals
Nutrition & Health
Paper Chemicals
Oil & Gas
Oil & Gas
Chemicals
Monomers
Intermediates
Petrochemicals
Functional Materials & Solutions
ConstructionChemicals
Coatings
Catalysts
Performance Materials
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Wind energy: a growth market withtechnological challenges
Size Ø: 17-foldPerformance: 400-fold
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annual installed capacity (GW)
PBT GF30 non-HR
Market growth
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10
20
30
40
50
60
70
80
2000 2005 2010 2012 2015 2020
Trends 1980-2020:
Cologne Cathedral
2000 kW
20000 kW
50 kW
1980Ø 15 m
2000Ø 112 m
2020Ø 252 m
Soccer field
Source: BTM WMU 2012
Systematic entry to the growth market of wind energy
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Blade root Composite
Structural adhesive
Shear webSandwich incl. core material
SparComposite
ShellSandwich with core material
CoatingIncluding finishing and repair
Baxxodur®
Hardened rotor bladesMulti-material systemsKerdyn®
Rotor blade model
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11
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2
3
4
5
6
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2009 2010 2011 2016
Biopolymers growth market
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Biopolymer market share 2012
0.4 %of the global plastics market
Source: European Bioplastics/IfBB
Forecast
million metric tons
Global biopolymer capacity
280m t
Polymers in the BASF portfolio basedon renewable resources
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Ultramid® S Balancepartially biobased
ecovio®
partially biobased, biodegradableLupranol® Balancepartially biobased
BASF mass balance methodology– systematic integration in the Verbund
Cost-effective integration of renewable resources in the existing Production Verbund
Flexible feedstock according to customer demand for nearly every product
No loss of product quality
Feedstock allocated to certified products
Certification by TÜV SÜD
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MarketProductionResources
bio-based
fossil
Products
certifiedconventional
BASF Verbund
Innovation as a driver ofgrowth and differentiation
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Membrane with nanopores
Composite: reactive resin + carbon fibers
1 Chemicals 10%
2 Performance Products 20%
3 Functional Materials & Solutions 20%
4 Agricultural Solutions 25%
5 Oil & Gas 2%
6 Corporate Research, Others 23%
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approx.€1.7bn
Research and development 2012