Innovating Together 1 150 Jahre BASF We create chemistry n Our - - PowerPoint PPT Presentation

Innovating Together

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150 Jahre

BASF – We create chemistry

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n Our chemistry is used in almost all industries n We combine economic success, social responsibility and environmental protection n Sales 2016: €57,550 million n EBIT 2016: €6,275 million n Employees: 113,830 (as of December 31, 2016) n 6 Verbund sites and 352 other production sites

150 years

BASF’s segments

Crop Protection

Performance Products

Dispersions & Pigments Care Chemicals Functional Materials & Solutions

Agricultural Solutions

Nutrition & Health Performance Chemicals

Oil & Gas

Oil & Gas

Chemicals

Monomers Intermediates Petrochemicals

Functional Materials & Solutions

Construction Chemicals Coatings Catalysts Performance Materials

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150 years

2016 sales* and EBIT in the regions

Million € North America South America, Africa, Middle East Asia Pacific Europe

Sales 14,682 EBIT 1,113 Sales 4,135 EBIT 432 Sales 27,221 EBIT 3,632 Sales 11,512 EBIT 1,098

* By location of company .

47% 20% 7% 26%

Sales BASF Group 57,550

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150 Jahre

Chemicals – a growth industry

Global annual growth rate of ~3.6%*

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… more food needed by 2050 … more primary energy consumption by 2050 … of the world population will live in cities by 2050 Agriculture Health & nutrition Energy & resources Transportation Construction & housing Consumer goods … people by 2050

70% 50% ~10bn

Electrical & electronics

30%

Chemistry as enabler to meet current and future needs

* Average annual real change 2017-2019; BASF Report 2016 p.121

150 Jahre

Innovation – meeting challenges, developing new business areas

Research for the future: With our innovative products and processes, we provide sustainable solutions for global needs.

n Expenditures for research and development €1,863 million, world leader in chemical industry n Around 10,000 employees worldwide involved in research and development n Around 3,000 research projects n Around 850 new patents filed

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1 2 3 4 6

€1.863

billion

1 Chemicals 10% 2 Performance Products 20% 3 Functional Materials & Solutions 21% 4 Agricultural Solutions 26% 5 Oil & Gas 2% 5

150 Jahre

Global Know-How Verbund

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Three global Technology Platforms headquartered in key markets Europe, North America, Asia- Pacific Close connection with the development units in the Operating Divisions Global Know-How Verbund and global network with around 600 universities, research institutions and companies

Advanced Materials & Systems Research Bioscience Research

Customers Industry partners High-tech joint ventures Research institutions

Process Research & Chemical Engineering

Universities

Technology Excellence Operating Divisions Innovation Management New Business & Venture Capital

150 Jahre

Performance Materials Construction & Coating Materials Dispersions & Colloidal Materials Structural Materials & Systems Polymer Processing & Engineering Care Materials Material Physics & Analytics

Advanced Materials & Systems Research

150 Jahre

Bioscience Research

n White biotechnology n Methods to produce more efficient products while consuming fewer resources n Targeted change metabolism of microorganisms n New, sustainable processes for mass producing microorganisms n Chemical manufacturing from renewable resources n BASF Enzymes n Patented and proprietary technology for the discovery of novel, unique enzymes n Comprehensive protein engineering tools n World-class facilities for enzyme scale-up n Enhancing crop efficiency n Transfer of genes with desirable traits into crops for:

n Better yield and stress tolerance n Improved herbicide tolerance n Better disease and pest resistance

150 Jahre

Process Research / Chemical Engineering

n Process and application design innovation n Constantly developing and improving the synthesis

• f various basic chemicals, intermediates and fine

chemicals as well as monomers, solvents and aroma chemicals n Process engineering: solids and fluids processing; high temperature engineering; safety engineering; fluid mechanics n Catalysis research n Heterogeneous and homogeneous catalysis n Electrochemistry and batteries n High throughput experimentation n New materials and systems n Metal organic frameworks (MOFs) n Nanomaterials n Mineral processing

150 Jahre Polymer Technologies Biotechnology Production Processes Materials Catalysis Biodegradable & Biobased Materials Enabling Methods

Focus Areas of Key Technology Capabilities

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Selected Key Technology Capabilities reflect where BASF requires continued effort and resources to safeguard todays and tomorrows excellence in innovation.

The Key Technology Capabilities are bundled in seven Focus Areas

150 Jahre

§ Computational Chemistry § Bioinformatics § Systems Biology § Biostatistics

Digitalization in R&D

Bundling Competencies

§ Chemical Process Modeling § Computational Fluids Dynamics § Materials Process & Molecular Modeling § Quantum Chemistry § Molecular Simulation § Data Sciences § New Solutions § Knowledge & Information Methods

150 Jahre

What BASF Needs

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150 Jahre

BASF Needs: Additives

n Fast-fusing sustainable plasticizers for flexible PVC applications n Halogen-free flame retardants for polyolefins / thermoplastics n Antioxidants with chemical resistance to chlorine oxidizing in plastics n New Antioxidant chemistry and/or technologies beyond traditional phenols, phosphites, amines, sulfides ** n Self forming barrier layers with physical resistance to chlorine oxidizing agents in plastics n New Light Stabilizer technologies beyond existing hindered amines; e.g. tetramethylpiperidines; piperizinones ** n New Light Stabilizer technologies beyond existing UV absorbers; e.g.,hydroxylphenylbenzophenones, hydroxylphenylbenzotriazoles, hydroxylphenyltriazines; nano ZnO; nano TiO2 n Flame retardant polymers or halogen free polymer additives especially those that do not act as plasticizers n ​Adhesive technologies (PUs and acrylics for adhesives, must be flame retardant) n Additives for composite materials:- Toughening (films, powders, fibers)- UV resistance- Flame retardance; incorporated clear and soluble (not particulates) n Flame retardant polyethersulfone (PESU) and polyphenylsulfone (PPSU) (in addition to intrinsic properties)

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150 Jahre

Working with External Partners

n Long history of successfully working with external partners n Currently ∼ 600 collaborations globally with universities, government labs and institutions but many are one-offs n Technology briefs as a route to understanding the core expertise of universities and federal labs n BASF Venture Capital engages with startups n More meaningful, sustainable relationships are preferred n UNIQUE program with 15 universities, of which 6 in the US Based on scientific quality, relevance and fit n 6 Postdoc centers, of which 2 in US Shift to a more structured approach

150 Jahre