Post on 26-Apr-2020
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BASF Investor Day Automotive September 5, 2012 Coatings
BASF’s Coatings Division: Focusing on growth and value
Markus Kamieth President Coatings Division September 05, 2012
2BASF Investor Day Automotive September 5, 2012 Coatings
Coatings – focusing on growth and value
Chemicals18%
Coatings4%
Plastics15%
Performance Products21%
Other9%
Agricultural Solutions6%
Functional Solutions15%
Oil & Gas16%
€73.5billion
BASF Group sales 2011
3BASF Investor Day Automotive September 5, 2012 Coatings Coatings
1 | BASF – a leading player in Coatings
2 | Strategic focus on automotive
4BASF Investor Day Automotive September 5, 2012 Coatings
Coatings – smart combination of different functional layers
Clearcoat Transparent protection
BasecoatColor, metallic effect
Primer Finish quality, stone chip resistance
E-coatCorrosion protection
Pre-treatmentBody
Steel, aluminum
Example: Automotive OEM Coating
5BASF Investor Day Automotive September 5, 2012 Coatings
BASF’s Coatings Division: Focused on key industries
For interior and exterior use in buildings
E-coat, primer, basecoat and clearcoat
Sealer, primer, basecoat and clearcoat
Coil coatings for steel and aluminum, coatings for wind turbine rotor blades
OEM coatings
Refinish coatings
Industrial coatings: Coil and wind energy
Decorative paints
6BASF Investor Day Automotive September 5, 2012 Coatings
Data source: BASF internal data
~17.0
6.6
2.2
6.9
1.3
~20.4
2.5
7.7
8.7
1.5 Decorative paints**
OEM coatings
Industrial coatings*
Refinish coatings
CAGR
5% p.a.
Coatings demand (in € billion)
4% CAGR4% CAGR
4% CAGR
6% CAGR
BASF Coatings strategic relevant market
BASF’s Coatings Division: Focused on attractive market segments
* BASF is active in coil and wind segment of the industrial coatings market ** Brazil
7BASF Investor Day Automotive September 5, 2012 Coatings
Balanced sales with a focus on growing markets and segmentsBy industry 2011
Refinishcoatings
22%
Industrial coatings8%
Decorative Paints23%
OEM coatings
47%
€2.8billion
North America
13%
Asia17%
South America, Africa & M.E.28%
Europe42%
By region 2011
€2.8billion
~ 45% of sales in emerging markets
8BASF Investor Day Automotive September 5, 2012 Coatings
Regional automotive production development by 2015 (in mio. units)
BASF manufacturing sites in 2011BASF R&D centers in 2011
North America
2011 20151 2011 2015
Europe, Africa, Middle East
23 268
3
Global presence brings customer proximity
South America
4 63
1
3
42011 2015
37
53Asia Pacific
13 173
9BASF Investor Day Automotive September 5, 2012 Coatings
Global player in automotive OEM and refinish coatings markets
€6.6 billion
PPG
DuPont*
Refinish coatings market in 2011
BASF in refinish coatings
BASF10%
Source: BASF internal
BASF19%
PPG
DuPont*
OEM coatings market in 2011
Globally # 2 China # 1Leader in topcoats and process solutionsSupplier to all major OEMs
BASF in OEM coatings
Others
Nippon Paint Kansai Paint
Others€6.9 billion
Globally # 3Focus on profitable premium segmentPioneer in waterborne technologyQualified by all major OEMs
*DuPont announced divestment of its Performance Coatings business to Carlyle group on August 30, 2012
10BASF Investor Day Automotive September 5, 2012 Coatings
Coatings – a consistent cash generator for BASF Group
EBITDA (indexed)Sales* (in € billion)
11BASF Investor Day Automotive September 5, 2012 Coatings
Clear levers for profitable growth
Leverage operational excellence
Enhance and broaden innovation platform
Strengthen leading positions and
expand in selected regions and segments
Consistently outperforming coatings market growth
12BASF Investor Day Automotive September 5, 2012 Coatings
Significant investments in emerging markets
>50% of investments until 2017 will be in Asia Pacific
2012: New Technical Center Thailand
2014: New Basecoat plant China2012: New Laboratory India
2012: New Laboratory Mexico
13BASF Investor Day Automotive September 5, 2012 Coatings
1 | BASF – a leading player in Coatings
2 | Strategic focus on automotive
2a | OEM coatings
14BASF Investor Day Automotive September 5, 2012 Coatings
What makes BASF successful in Automotive OEM coatings?
Key success factors
Process innovator – BASF is the global leader in integrated processes
Product innovator – Competence in all layers: BASF is the global leader in topcoats (basecoat and clearcoat)
Partnership with customers – From design to assembly
Automotive OEMs
Automotive suppliers
Globally #2
Globally #2
15BASF Investor Day Automotive September 5, 2012 Coatings
Process innovator Our invention of the “Integrated process” is an industry trend
Conventional coating-process
Oven
E-coat
Oven
Primer Basecoat
Flash- off Oven
Clearcoat
Key facts
Pioneer with Daimler (1997)
BASF is the leader in integrated processes
BASF targets >30% market share by 2015
2011: JV with Henkel to develop leap-frog technology, combining pre-treatment and e-coat
Customer benefits
Reduction of capital investment
Energy savings
“Integrated process”
Oven
E-coat Innovative Basecoat
Flash- off Oven
Clearcoat
16BASF Investor Day Automotive September 5, 2012 Coatings
BASF Coatings – driving sustainabilityProcess and product innovations
Significant energy savings
Conventional coatings process
Integrated process
Waterbased coatings process reduces VOC by 66%
VOC* in kg/car (average)
-66%-66%
Thereof paint shop
Total energy consumption of car production
Integrated processes save up to 17% of the total energy required for car production
8.4 2.8
100%
83%-25%
-17%-17%
Conventional coatings process
Waterbased coatings process
* VOC = Volatile Organic Compounds
17BASF Investor Day Automotive September 5, 2012 Coatings
Product innovator We are No.1 in topcoats
43%
20%
14%
23%
Avg. usage per car (by value)
Basecoat
Clearcoat
Primer
E-coat
Topcoats (basecoat and clearcoat) are the most valuable layers on a car body
iGlossBenchmark in protection
Cathoguard 800/900Environmentally friendly
XColors Innovative color trends
18BASF Investor Day Automotive September 5, 2012 Coatings
Partnership with key OEM customers Close relationship from concept to market
2012: Tech Day SAIC R&D Center
IAA Frankfurt 2011: smart forvision
2012: Zhengzhou Nissan R&D Award
2010: Start-up partner for Hyundai Russia
19BASF Investor Day Automotive September 5, 2012 Coatings
Key facts
Market leader in China and BRIC
Pioneer in China: since 1997; new OEM coatings production planned in 2014
China growth fueled by investment in integrated processes – until 2015, >16 new OEM plants will require this technology
29% of BASF OEM coatings sales came from BRIC countries in 2011
Objective: grow our sales share from BRIC countries to >35% until 2015
Growth opportunities We are well-positioned in BRIC, particularly in China
0
10
20
30
40
50
2011 2015
BRIC production forecast (Light vehicles in million)
41
26
BrazilIndia Russia China
+11%+10%
CAGR
12% p.a.
+11%
+14%
Data source: LMCA
20BASF Investor Day Automotive September 5, 2012 Coatings
1 | BASF – a leading player in Coatings
2 | Strategic focus on profitable growth
2b | Refinish coatings
21BASF Investor Day Automotive September 5, 2012 Coatings
Premium A segment makes up 60% of automotive refinish marketMarket share of segments in refinish coatings 2011 (in %)
Car age < 5 years, OEM and insurer drivenA
Car age > 10 years, owner drivenC
CBA segment segmentsegment
Car age < 5-10 years, insurer and owner drivenB
22BASF Investor Day Automotive September 5, 2012 Coatings
What makes BASF successful in Refinish coatings?
Key success factors
Process innovation –leader in the integrated process
Product innovation –leader in waterborne technology
Premium brands and distribution network
Automotive refinish coatings
Globally #3
23BASF Investor Day Automotive September 5, 2012 Coatings
Process innovator Integrated process in refinish
New BASF process
Current process
Clearcoat
Basecoat
Sealer
Primer
Substrate
Clearcoat
Basecoat
DTM sealer
Substrate
Key facts
Market launch of direct-to-metal (DTM) sealer in 2011
Market potential for refinish integrated system until 2020 is €100 million
Customer benefit
Process time saving of up to 50%
Up to 15% material consumption savings
24BASF Investor Day Automotive September 5, 2012 Coatings
Product innovator Leader in waterborne technology
Rising share of BASF Refinish Coatings waterborne sales
Key facts
BASF Refinish Coatings is pioneer in waterborne technology
Current roll-out of waterborne basecoat in North America
Foster introduction in BRIC Countries
In 2011 waterborne products accounted for ~30% of BASF Refinish Coatings total sales
In 2015 we expect to achieve >35% of BASF Refinish Coatings sales from waterborne products
Increasing regulations worldwide push demand for waterborne technologies
BASF Refinish Coatings waterborne products sales
BASF Refinish Coatings total sales
25BASF Investor Day Automotive September 5, 2012 Coatings
Premium brand primarily sold in:Australia, BRIC, Europe, South Africa
In the market since 1919
Premium brand primarily sold in:North America, Europe, Japan
In the market since 1898
Premium brands One premium brand by country
26BASF Investor Day Automotive September 5, 2012 Coatings
Growth opportunities Targeting new markets with value-for-money brands
Key facts
Value-for-money brand
– Provides access to new markets for BASF Refinish Coatings
– Strengthens our dealers’ market position and dealer network
– Facilitates additional sales of BASF Refinish Coatings premium brands
Market potential in selected countries is~€800 million
Target: Value-for-money brands will account for >10% of BASF Refinish Coatings sales in 2015
B brand sold in Mexico
B brand sold in Australia, China, South Africa, Turkey
27BASF Investor Day Automotive September 5, 2012 Coatings
BASF’s Coatings Division targets 2015
Operational targets
OEM:– Remain No. 1 in topcoats and integrated process– Grow sales share in BRIC countries by 20 percent
Refinish:– Expand leading position in waterborne technologies– Grow in B-segment, with focus on Asia
28BASF Investor Day Automotive September 5, 2012 Coatings
BASF’s Coatings Division targets 2015
Financial targets
Grow sales to more than 3.6 billion euros by 2015
Steadily increase operating profitability
Continue to generate a premium on cost of capital
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