BASF SE Q2 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jaideep Mukesh Pandya - On Field Investment Research LLP - Analyst : I want to go back to the CMD you guys did in 2018, where you gave the 3% to 5% EBITDA sort of CAGR target. And obviously, at that time, flagged that this is not going to be easy. As of today, you're probably going to do almost all the CAGR in 2021 if EBITDA is close to roughly EUR 12 billion based on a EUR 9 billion base of '18 roughly. So just want to understand, as we think about life ahead for BASF, I mean, how sustainable is this earnings level today? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 28, 2021 / 8:00AM, BASFn.DE - Q2 2021 BASF SE Earnings Call Do you think that, basically, if you add all the sort of overearning you're doing in certain upstream areas versus some of the investments as underearning that is in the downstream areas, there's still room to grow from the current profitability level of roughly sort of EUR 12 billion? Or is it really an exceptional year this year and therefore we should actually be thinking about some moderation in the outer years, and therefore, go back to this more like a 3% growth rate level rather than the 5% growth rate level in terms of the range? That's my first question. And the second question really is around your battery business. So obviously, you've announced a big sort of joint venture with Shanshan. How do you actually unlock value in this business from a capital markets point of view? I mean, in the longer term, do you plan to sort of separate this business with a focused strategy or you intend to just keep it in BASF? And therefore, this -- is this going to be an important part of your strategy but it is always going to be for the capital markets to ascertain a value to it?