Value. We add value as one company. Andreas Kreimeyer Member of the Board of Executive Directors. Chemicals. Performance Products.

Transcription

1 Andreas Kreimeyer Member of the Board of Executive Directors Roadshow Switzerland Chemicals July 4, 2013 Oil & Gas Performance Products Value Agricultural Solutions Functional Materials & Solutions We add value as one company

2 Cautionary note regarding forward-looking statements This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. BASF has based these forward-looking statements on its views and assumptions with respect to future events and financial performance. Actual financial performance could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. The information contained in this presentation is subject to change without notice and BASF does not undertake any duty to update the forwardlooking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. 2

3 Business review BASF Today Trends Overview BASF Purpose and strategic principles Targets Business review Strategic BASF strategy levers & growth targets BASF Tomorrow Board priorities Strategic levers BASF BASF Strategy: Capital We Market create Story chemistry November July

4 BASF The Chemical Company Facts & figures Customers in more than 200 countries and in virtually all industries No 1-3 market position in over 75% of our businesses Unique Verbund concept for integrated production - Six Verbund sites in all major regions - Production sites in 60 countries High-quality management team - Senior executives from 37 countries International, interdisciplinary R&D network 4

5 We create chemistry for a sustainable future Positioning Performance Perspective Geismar, USA Freeport, USA Ludwigshafen, Germany Antwerp, Belgium Nanjing, China Kuantan, Malaysia Verbund site The #1 chemical company 72.1 billion sales, 6.6 billion EBIT bsi in 2012* #1-3 in >75% of businesses, present in >200 countries 6 integrated Verbund sites, production in 60 countries * restated numbers, reflecting IFRS 10/11 changes 10 years of strong sales and earnings growth 18% average annual total shareholder return** 16% average annual dividend increase, >3% yield in every single year*** ** July 2003 June 2013 *** for Chemistry as an enabler BASF has superior growth opportunities: - sustainable innovations - investments - emerging markets Ambitious financial targets 5

6 BASF today a well-balanced portfolio Total sales 2012: 72.1 billion* Percentage of sales 2012** * Restated numbers, reflecting IFRS 10/11 changes, new segment structure effective Jan. 1, 2013 ** Not depicted here: ~5% of Group sales reported as Other 6

7 BASF The Chemical Company Total sales 2012: 72.1 billion* Sales by region* Europe 58% 2 Asia Pacific 16% 3 North America 20% 4 South America, Africa, Middle East 6% * Sales by location of customer 7

8 Unique Verbund concept Cost savings of > 500 million p.a. in Ludwigshafen alone BASF site Ludwigshafen, Germany Verbund Concept Vertical and horizontal integration of production plants, energy and waste flows, logistics and site infrastructure Know-how Verbund Energy Verbund and combined heat and power plants lead to: - Savings of 1.5 million tons oil equivalent p.a. - Reduction of CO 2 -emissions of ~3.4 million tons p.a. 8 8

9 Sales by customer industry (direct customers, in percent of sales) > 15% Chemicals and plastics Energy and resources % Transportation Consumer goods 5 10 % Construction Agriculture < 5 % Health and nutrition Electronics * Other industries: approximately 10-15% of total sales 9

10 Delivering attractive shareholder returns Dividend per share (in ) Dividend payments Dividend of 2.60 per share for : Average annual dividend increase of 16% Attractive dividend yield of 3.7% in 2012** Dividend yield above 3% in any given year since 2002, total payout almost 17 billion Dividend yield* 3.1% 3.2% 3.1% 4.1% 3.8% 7.0% 3.9% 3.7% 4.6% 3.7% * Dividend yield based on share price at year-end ** Based on BASF share price of on Dec. 28,

11 Delivering consistent, long-term value Average annual performance with dividends reinvested Last 10 years July 2003 June 2013 Last 5 years July 2008 June % BASF +14.1% +3.8% Euro Stoxx % +9.5% DAX % +11.2% MSCI World Chemicals +2.5%

12 BASF Today The leading chemical company Track record of outperforming global chemical production growth Active management of portfolio towards higher returns and less cyclicality Strong and profitable growth in emerging markets Focus on innovative products and solutions Benchmark in operational excellence with unique Verbund concept Strong earnings power, high cash flow generation and a strong financial profile Generation of long-term attractive shareholder returns 12

13 Business review BASF Today Trends Overview BASF Purpose and strategic principles Targets Business review Strategic BASF strategy levers & growth targets BASF Tomorrow Board priorities Strategic levers BASF BASF Strategy: Capital We Market create Story chemistry November July

14 Economic development GDP development* Real chemical production excl. Pharma* 2012 Forecast Forecast 2013 Europe -0.3% +0.3% -1.3% +0.3% North America +2.3% +1.9% +2.3% +2.0% Asia Pacific +4.3% +4.5% +5.6% +6.7% South America +2.4% +3.7% +1.9% +3.7% World +2.4% +2.4% +3.4% +3.6% *As published on April 26,

15 BASF with a solid start to 2013 Business performance Q1 13 vs. Q1 12 Sales 19.7 billion +5% EBITDA 2.9 billion (14%) EBIT before special items 2.2 billion +10% EBIT 2.2 billion (17%) Net income 1.4 billion (15%) Reported EPS 1.57 (15%) Adjusted EPS % Operating cash flow 2.0 billion +33% Sales development Period Volumes Prices Portfolio Currencies Q1 13 vs. Q1 12 5% 1% 0% (1%) 15

16 Regional Business Development Q Sales by region* Q1 13 vs. Q1 12 Europe 12.2 billion +8% thereof Germany 8.9 billion +10% North America 3.7 billion (2%) Asia Pacific 2.8 billion +4% South America, Africa, 1.0 billion (-6%) Middle East Total 19.7 billion +5% * Sales by location of customer 16

17 Strong free cash flow generation Free cash flow* in billion ** Q * Cash provided by operating activities less capex (in 2005 before CTA) ** 2009 adjusted for re-classification of settlement payments for currency derivatives 17

18 Outlook 2013 confirmed Outlook 2013 Excluding the effects of acquisitions and divestitures, we strive to increase our sales volumes in 2013 We aim to exceed the 2012 restated levels in sales and EBIT before special items The expected increase in demand, together with our measures to improve operational excellence and raise efficiency, will contribute to this We aim to earn a high premium on cost of capital once again in 2013 Assumptions 2013 GDP: +2.4% Industrial production: +3.4% Chemical production: +3.6% US$ / Euro: 1.30 Oil price (US$ / bbl):

19 Business review BASF Today Trends Overview BASF Purpose and strategic principles Targets Business review Strategic BASF strategy levers & growth targets BASF Tomorrow Board priorities Strategic levers BASF BASF Strategy: Capital We Market create Story chemistry November July

20 Key financial targets 2015 / 2020 Growth targets Profitability targets Grow at least 2 percentage points above chemical production Earn a premium on cost of capital of at least 2.0 billion on average p.a Sales ~ 80 billion EBITDA ~ 14 billion EPS ~ Sales ~ 110 billion EBITDA ~ 22 billion 20

21 Demographic challenges set the stage for the future of the chemical industry Nine billion people in 2050 but only one earth Resources, Environment & Climate Food & Nutrition Quality of Life Chemistry as enabler 21

22 Business review BASF Overview Today BASF Trends Business review Purpose and strategic principles Targets BASF strategy & growth targets Strategic Strategic levers levers BASF Tomorrow Board priorities Portfolio development Market approach Innovations for a sustainable future Investments Acquisitions Operational excellence BASF BASF Strategy: Capital We Market create Story chemistry November July

23 Portfolio development We expand from chemicals to chemistry New molecules Chemistry as key enabler for functionalized materials & solutions Improved applications Functionalized materials & solutions Deep understanding of customer value chains required Batteries, membranes... 23

24 Portfolio development Moving downstream towards customer industries Classical Chemicals Customized Products Functionalized Materials & Solutions 2001 in % of sales** Chemical Industry ~ 50% First customer industries* ~ 50% 2010 in % of sales** ~ 40% ~ 60% 2020 in % of sales** ~ 30% ~ 70% * Agriculture, Construction, Consumer Goods, Health & Nutrition, Electronics, Energy & Resources, Transportation ** Sales excluding Oil & Gas. Targets were published on November 29,

25 Portfolio development Towards more market driven and innovative businesses Acquisitions Engineering plastics Electronic chemicals Catalysts Construction chemicals Water-based resins Pigments Plastic additives Oil & Gas Personal care & food Battery materials Functional crop care Omega-3 fatty acids BASF core business Selected transactions 2001 today* Strong partnerships Gazprom Monsanto Petronas Shell Sinopec Total Pharma Fibers Divestitures Printing systems Polyolefins Polystyrene Americas Agro generics Vitamins premix Fertilizers Styrenics (transferred into Styrolution JV on Oct. 1, 2011) ~ 15bn sales ~ 10bn sales** * only closed deals have been considered ** without Styrenics 25

26 Ongoing portfolio development Transactions with Statoil and Gazprom Acquisition of Pronova BioPharma Restructuring in Performance Products Aroma Ingredients Investment, Kuantan 26

27 Market approach Cross-divisional customer industry approach BASF sales by first customer industry* Bubble Size: BASF divisional sales by first customer industry (2010)** Consumer goods > 15 % Transportation > 15 % Construction < 10 % Energy & Resources < 10 % Inorganics Catalysts Petrochemicals Construction Chemicals Intermediates Coatings Dispersions & Pigments Care Chemicals Performance Chemicals Paper Chemicals Polyurethanes Performance Polymers * Excluding Oil & Gas and Other ** Excluding Agricultural Solutions, Health & Nutrition, Oil & Gas and Other 27

28 Cross-divisional approach: Smartforvision Technology competencies combined with customer know-how Lightweight tridion cell High performance foams Solar roof with transparent organic solar panels and OLED modules E-textiles Infrared-reflective film Infrared-reflective coating Multifunctional seat All-plastic wheel Daimler & BASF concept car Smartforvison 28

29 Innovation with adidas: BOOST Technology competencies combined with customer know-how Photo: adidas Key facts Joint development with adidas, illustrating our customer focus New energy BOOST cushioning material, provides highest energy return in the running industry Solid granular material* is blown up, turned into 1000 s of small energy capsules With their unique cell structure, these energy capsules store and unleash energy more efficiently in every stride New shoe is available in stores since February, 2013 * TPU (Thermoplastic polyurethane) 29

30 Strong commitment to R&D Innovations for a sustainable future R&D expenditures (billion ) 2,0 1,5 1,0 0,5 0, Corporate Research 23% Oil & Gas 2% Agricultural Solutions 25% Functional Mat. & Sol. 20% Performance Products 20% Chemicals 10% Key facts 1.7 billion R&D expenditures in 2012, further increase planned for 2013 ~10,500 employees in R&D ~3,000 projects Research Verbund: Cooperations with 600 excellent partners from universities, start-ups and industry Sales targets 2015 and 2020: - 10 billion from innovations introduced since billion from innovations introduced since

31 Chemistry as an enabler: Growth Fields Innovations for a sustainable future Resources, Environment & Climate Food & Nutrition Quality of life Chemistry as enabler Customer industries Transportation Construction Consumer Goods Health & Nutrition Electronics Agriculture Energy & Resources Batteries for mobility Heat management Enzymes Medical Organic electronics Plant biotechnology E-Power management Growth Fields* Lightweight composites Functional crop care Wind energy Water solutions Technology fields Raw Material Change Materials Systems & Nanotechnology White Biotechnology * including growth fields still under evaluation 31

32 Battery materials will play a key role in advancing electromobility of the future Focus and target Focus: Advanced cathodes and electrolytes development for lithium-ion batteries, as well as next-generation battery systems Target: Position BASF as a leading global solution provider for battery and cell manufacturers Business potential 2020 Overall market size: > 20 billion globally (~ 16 billion in Asia Pacific) SRM size: > 5 billion globally (~ 4 billion in Asia Pacific) BASF sales potential: > 500 million globally (~ 350 million in Asia Pacif.) Activities Acquisition of Novolyte Technologies, Merck s electrolyte business, Ovonic, equity position in Sion Power Sites in US, Europe, China. New electrode materials plant in Elyria, Ohio New electrolytes R&D laboratory and Application Technology Center for Battery Materials starting up in Amagasaki, Japan, 2013 Ongoing collaboration with leading universities, institutes and industry partners, as well as battery producers and OEMs 32

33 Investments will boost future organic growth Future investments ( billlion) ~ % 35-45% ~20% Total investments Thereof investments in emerging markets 33

34 Investments Major projects MDI plant Chongqing, China Expansion Verbund site Nanjing, China* Acrylic acid complex Camacari, Brazil TDI plant Ludwigshafen, Germany Aroma Ingredients Kuantan, Malaysia Expansion oil & gas activities * Memorandum of Understanding signed 34

35 Acquisitions will contribute to profitable growth in the future We want to acquire businesses which Generate profitable growth above the industry average Are innovation-driven Offer a special value proposition to customers Provide a minimum return on investment of 8% p.a. after tax Are EPS accretive by year three at the latest Reduce earnings cyclicality Strategic acquisition criteria Financial acquisition criteria 35

36 Operational excellence STEP program on track: ~ 1 billion earnings contribution by 2015 Annual earnings contribution ( million) 3,000 2,000 1,000 0 Former cost saving programs NEXT STEP NEXT Program NEXT program successfully completed Annual earnings contribution of ~ 1 billion achieved in 2012 STrategic Excellence Program STEP Targeted annual earnings contribution of ~ 1 billion by end of 2015 Project timeline: Program is on track Measures to optimize processes and structures in all regions, e.g. manufacturing, maintenance supply chain engineering, best-cost country sourcing One-time costs & investments: ~ 1 billion 36

37 Appendix Business development Q1 2013

38 Chemicals Earnings increase due to higher margins Q1 13 segment sales (million ) vs. Q1 12 EBIT before special items (million ) Intermediates % 4,396-3% Monomers 1,680 +4% Petrochemicals 2,016 (9%) Q1 Q2 Q3 Q4 Q Sales development Period Volumes Prices Portfolio Currencies Q1 13 vs. Q1 12 (2%) 1% (1%) (1%) 38

39 Performance Products Stable volumes but lower earnings Q1 13 segment sales (million ) vs. Q1 12 Care Chemicals 1,275 0% Nutrition & Health % Paper Chemicals 362 (8%) 3,880-2% Performance Chemicals 891 0% Dispersions & Pigments 859 (7%) EBIT before special items (million ) Q1 Q2 Q3 Q4 Q Sales development Period Volumes Prices Portfolio Currencies Q1 13 vs. Q1 12 0% (2%) 1% (1%) 39

40 Functional Materials & Solutions Increased demand in Performance Materials Q1 13 segment sales (million ) vs. Q1 12 Performance Materials 1,572 +6% Catalysts 1,453 (1%) 4,181 +0% Construction Chemicals 458 (9%) Coatings 698 (2%) EBIT before special items (million ) Q1 Q2 Q3 Q4 Q Sales development Period Volumes Prices Portfolio Currencies Q1 13 vs. Q1 12 2% 0% 0% (2%) 40

41 Agricultural Solutions Excellent start into the year, record sales and earnings Q1 13 segment sales (million ) vs. Q1 12 EBIT before special items (million ) ,327 1, Q1 Q1 0 Q1 Q Sales development Period Volumes Prices Portfolio Currencies Q1 13 vs. Q % 1% 4% (1%) 41

42 Oil & Gas Sales growth due to higher production Q1 13 segment sales (million ) vs. Q1 12 EBIT bsi/net income (million ) Natural Gas Trading 3, % 4, % Exploration & Production % Q1/2012 Net Income Q1/2013 Net Income Exploration & Production Natural Gas Trading Net income Sales development Period Volumes Prices/Currencies Portfolio Q1 13 vs. Q % 1% 0% 42

43 Review of Other Million Q1 13 Q1 12 Sales 1, EBIT before special items (182) (314) thereof Corporate research Group corporate costs Currency results, hedges and other valuation effects Styrenics, fertilizers, other businesses (97) (56) (97) (58) (206) 145 Special items (28) 578 EBIT (210)

44 Balance sheet remains strong Balance sheet March 31, 2013 vs. Dec. 31, 2012 (billion ) Long-term assets Disposal group Inventories Accounts receivable Other assets Liquid funds Dec March March Dec Stockholders equity Financial debt Disposal group Other liabilities Highlights March 31, 2013 Long term assets increased mainly due to consolidation of former Pronova BioPharma business Short term assets up due to increase in accounts receivable Increase in financial debt due to issuance of long-term bonds Net debt: 10.9 billion Equity ratio: 41% 44

45 Appendix Impact of IFRS 10 & 11 changes on medium- and long-term sales & earnings targets of BASF Group

46 Key financial targets 2015 / 2020 Impact of new IFRS 10/11 regulations Sales (billion ) ~79-7 = IFRS 10/11 impact ~72 ~85-5 ~80 ~115-5 ~110 EBITDA (billion ) ~ = IFRS 10/11 impact ~10 ~15-1 ~14 ~23-1 ~ restated 2015* 2015 adjusted 2020* 2020 adjusted restated 2015* 2015 adjusted 2020* 2020 adjusted The 2015 EPS target of 7.50 is unchanged * communicated during We Create Chemistry Investor Day on November 29,

47 Appendix Additional information from Investor Day Asia Pacific (June 5-6, 2013)

48 We create chemistry in Asia Pacific: 2020 targets Market 25 billion sales Innovation ~3,500 R&D staff Portfolio > 2 billion sales from new biz and acquisitions Investment 75% OMP ratio People ~9,000 new jobs Excellence 1 billion cost savings 48

49 Asia Pacific Organic growth drives top line growth Sales contributions billion > 10 billion CAGR ~9% > 2 billion New Sales Target: 25 billion 12.5 billion 2012 restated Organic Growth New Business & Acquisitions restated = adjusted to changes in IFRS 10 & 11 49

50 Address specific R&D areas for BASF in Asia Pacific Electronics Agro Catalysts Polymers & Materials Mining Water 50

51 Expand research capabilities in Asia Pacific with new R&D centers R&D Center Korea (2013) Focus: electronics R&D Center Japan (2013) Focus: battery materials Innovation Campus Asia Pacific, Shanghai (2012) Focus: polymers & materials R&D Center Singapore (2007) Focus: water, membrane, oilfield R&D Center Australia (2012) Focus: mining Innovation Campus Asia Pacific, India (in planning) Focus: life science, agro 51

52 Appendix Additional information on transactions in Oil&Gas

53 Asset swap with Gazprom Wintershall and Gazprom agree on asset swap relating to the Blocks IV and V in the Achimov formation of the Urengoi natural gas and condensate field Wintershall to receive: 25% plus one share in the Blocks IV and V in the Achimov formation with the option to increase the share in the two deposits. Gazprom to receive: 50% share in Wintershall Noordzee, which is active in the exploration and production of oil and gas in the southern North Sea (Netherlands, UK, Denmark) 50% shares (thus taking over 100%) in the gas trading companies WINGAS, WIEH and WIEE, including shares in the natural gas storage facilities in Rehden and Jemgum, Germany, as well as Haidach, Austria, and the gas storage operator astora Closing expected by the end of 2013; effective date April 1, Transaction is subject to approval by the relevant authorities Ownership of gas transportation business unaffected 53

54 Asset swap with Gazprom Strategic rationale BASF invests in markets/products with unique selling propositions - especially by applying advanced technologies The Natural Gas Trading business became a commodity market with increasing pressure on margins and limited possibilities to add value Focuses BASF s Oil & Gas business on highly profitable upstream exploration and production activities and delivering medium-term earnings uplift Provides access to attractive, condensate-rich Achimov assets Significantly increases Wintershall s resource base Further strengthens the strategic partnership with Gazprom and Wintershall s focus on Russia as a core region for Oil & Gas 54

55 Asset swap with Gazprom Achimov Blocks IV and V Next step for further growth Key field data: Target field depth: ~3,600 meters Total resources Blocks IV and V: 2.4 billion boe 274 billion m³* of natural gas 74 million tons of condensate BASF share (600 million boe) equivalent to approx. 20% of total BASF hydrocarbon resource base as at Dec 31, 2012 Plateau production potential of >8 billion m³* p.a. in total for the two additional blocks Synergies through regional and technological expertise of both partners Start of production is planned for 2016 * Russian Standard Conditions (RSC) 55

56 Transaction with Statoil Wintershall enters into a cooperation with Statoil Memorandum of Understanding signed in October 2012 Wintershall substantially expands production and reserves of oil and gas in the North Sea Wintershall acquires equity in three producing fields from Statoil Brage (32.7%), Gjøa (15%) and Vega (30%) production of about 36,000 boepd 100 million boe 2P reserves net to Wintershall (50% liquids; 50% gas) Statoil receives 15% share in the development project Edvard Grieg (Wintershall share today 30%) $1.35 billion financial compensation. Plus up to $100 million contingent payment in case of successful future development of Vega, depending on additional volumes Closing expected by mid 2013; effective as of 1 st January 2013 Joint research into innovative techniques for EOR and possible application of the biopolymer Schizophyllan, developed by Wintershall and BASF Joint research into unconventional hydrocarbon resources (shale gas/oil) starting with Statoil s 49% farm-in to the Wintershall Rheinland and Ruhr concessions in Germany. Intention to expand these joint activities in other countries 56

57 Transaction with Statoil Strategic rationale Strengthen Wintershall s position in Norway by accessing three producing oil and gas fields Accelerate near-term oil production of Wintershall Norge from currently around 3,000 boepd to ~40,000 boepd By taking over operatorship of Brage field, Wintershall gets first own-operated producing field in Norway Asset swap significantly increases Wintershall s operating cashflow and EBIT in Norway Wintershall reduces near-term investment requirements through divestment of 15% stake in Edvard Grieg field Statoil s and Wintershall s combined knowledge on EOR and unconventional hydrocarbons could lead to new business opportunities 57

58 Transaction with Statoil Impact on portfolio of major fields Maria 50% share Wintershall* Knarr 20% share BG* Cladhan 33.5% share Sterling* Broom 29% share EnQuest* Crathes/ Scolty 50% share EnQuest* Catcher 20% share Premier* Bergen Beta 15% share Suncore Energy* Skarfjell 35% share Wintershall* Grosbeak 45% share Wintershall* Astero 25% share Statoil* Edvard Grieg 30% share -15% out Lundin* Gjøa 15% share GDF Suez* Vega 30% share Statoil* Brage 32.7% share Wintershall to be operator Assets In Asset Out * Operator Main Existing Assets 58

59 Appendix Additional information on acquisition of Becker Underwood (closing in November 2012)

60 Acquisition of Becker Underwood Transaction - at a glance 1. Cornerstones BASF acquires US-based Becker Underwood (BU) for a purchase price of $1.02 billion ( 785 million) from Norwest Equity Partners. 100% cash consideration, no financing conditions. BU is a global market leader in biological seed treatment and biological foliar crop protection. BU sales 2012E* $240 million ( 185 million) Closing is expected by year-end 2012, pending approval by the relevant merger control authorities. 2. Rationale The transaction strengthens BASF s position as solution provider in Agro. BU adds further momentum to BASF s strongly growing Seed Solutions business and it complements BASF s portfolio with biological crop protection solutions. BASF s strong sales channels ensure broad market reach. BASF s Seed Solutions business will benefit from BU s R&D platform and expertise. * Becker-Underwood s fiscal year ends September 30 60

61 Acquisition of Becker Underwood A good fit to BASF 1. Seed Treatment One of the strongest growing, most attractive markets in Crop Protection. BASF s Seed Solutions business has outgrown the market. Sales 2011: 248 million : +24 % CAGR, average market growth : +11 % CAGR* The transaction will further strengthen BASF s Seed Solutions business. BASF will be able to provide innovative solutions covering seed protection as well as offerings beyond (e.g. inoculants or polymer coatings). Thus BASF will establish multiple touch points with key seed companies. 2. Biological Crop Protection Biological crop protection compounds become more important, especially in high value crops, such as fruits or vegetables. BU s portfolio of biological fungicides and insecticides complements BASF s offering of chemical crop protection products. BASF will develop innovative combined solutions of chemical and biological crop protection. * BASF estimate 61

62 Appendix Additional information on acquisition of Pronova Biopharma (closing in January 2013)

63 Pronova at a glance Pioneer and leading company in highly concentrated omega-3 fatty acids. Sales of 214 million and an EBITDA of ~ 90 million in Sales in more than 50 countries with one blockbuster product, mainly sold as Omacor by Abbott in Europe and as Lovaza by GSK in the US. Excellent cost position due to two state of the art production sites in Norway and Denmark (total capacity: 2,500 tons p.a.). Strong R&D know-how to develop the next generation of omega-3 solutions a platform for pharmaceuticals, dietary supplements and clinical nutrition. 63

64 Acquisition of Pronova Biopharma ASA completed by January 31 st 2013 BASF now market leader in the profitable, growing markets of high concentrated fatty acids Pronova completes our Verbund concept for fatty acids consisting of former Cognis and Equateq Sites: - Cost-effective use of side streams and intermediates between sites - Strong technology and cost position - Market access to both Pharma and Human Nutrition customers Untapped market space for higher concentrated omega-3-fatty acids in the attractive Dietary Supplement segment Pharma Callanish Brattvaag Sandefjord Kalundborg Lampertheim Lysaker Ballerup Human Nutrition 64

65 65