BASF: Ambitious Targets
At press conference BASF SE, Ludwigshafen, Germany, today presented its further developed corporate strategy. In his speech, the Chairman of BASF’s Board of Executive Directors Dr. Kurt Bock named the two growth drivers sustainability and innovation: “We have summarized what we do as a company in our corporate purpose: We create chemistry for a sustainable future.” In 2020, sales of EUR 30 billion and an EBITDA of EUR 7 billion are to be generated with products that have been on the market for less than 10 years, added Vice Chairman Dr. Martin Brudermüller, thus stressing the importance of innovations for the company.
BASF has set itself ambitious goals. The company forecasts that global chemical production will grow faster than global gross domestic product (GDP) through 2020. In this period, the company expects the global economy to grow by an average of 3 % per year, and thus slightly faster than in the past 10 years, while chemical production is forecast to grow on average by 4 % per year. BASF continues to aim to grow 2 percentage points above chemical production and thus increase sales by an average of 6 % per year until 2020. Overall, BASF targets sales of approximately EUR 115 billion and seeks to further increase profitability to achieve an EBITDA of EUR 23 billion in 2020.
BASF’s sales to customers in emerging markets have almost tripled in the past 10 years and accounted for approximately one-third of total sales (excluding Oil & Gas) in 2010. In 2020, the company expects current emerging markets to contribute 45 % to sales. Investments will boost the company’s future growth. Between 2011 and 2020, BASF plans capital expenditures of EUR 30 billion to EUR 35 billion. More than one-third of this amount will be invested in emerging markets.
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