BASF Capital Markets Day Summary Company Overview - **Company**: BASF (OTCPK:BASF.Y) - **Event**: 2025 Capital Markets Day - **Date**: October 02, 2025 - **Location**: Antwerp, Belgium Key Industry Insights - **Chemical Industry Context**: The chemical industry is facing significant macroeconomic challenges, but BASF remains confident in its strategic direction and initiatives despite these headwinds [10][26]. Core Business Strategy - **Winning Ways Strategy**: BASF launched a new strategy focusing on portfolio steering, capital allocation, and establishing a performance culture [9][11]. - **Core vs. Standalone Businesses**: BASF differentiates between core businesses (chemicals, materials, industrial solutions, nutrition and care) and standalone businesses, with a clear focus on enhancing the core [15][16]. - **Financial Ambitions**: The goal is to increase EBITDA from $5.4 billion to $7.9 billion by 2028 for core businesses [15]. Financial Performance and Targets - **Midterm Financial Targets**: BASF confirmed targets of €10 billion to €12 billion EBITDA before special items and cumulative free cash flow of €12 billion from 2025 to 2028 [26]. - **Dividend Policy**: BASF aims to maintain a dividend of at least €2.25 per share annually, with total shareholder distributions expected to reach at least €12 billion between 2025 and 2028 [27]. Operational Highlights - **Antwerp Site**: The Antwerp site is the second largest Verbund site for BASF, showcasing high energy integration and housing all eight core business units [5][6]. - **Cost-Saving Initiatives**: BASF is implementing a €2.1 billion cost-saving program targeting 10% of fixed costs, with a run rate savings of $1.6 billion expected by the end of the year [34][35]. Value Chain Focus - **Polyurethanes and Ethylene Oxide**: The conference highlighted the importance of the polyurethanes and ethylene oxide value chains, which represent significant portions of BASF's core business [7][57]. - **Innovation and Sustainability**: BASF emphasizes innovation in its core businesses, with 15% of sales coming from products launched in the last five years, driven by sustainability trends [52][53]. Standalone Business Updates - **Automotive Catalyst Business**: The internal carve-out of the automotive catalyst business is seen as a success, with expected cumulative cash flow contributions of approximately $4 billion from 2024 to 2030 [19]. - **Battery Market Challenges**: The battery market remains volatile, prompting BASF to reduce fixed costs and ramp down capital spending [20][21]. - **Coatings Business Divestment**: BASF successfully divested its decorative paints business in Brazil for $1.15 billion and is exploring options for the rest of its coatings business [22][23]. Future Outlook - **IPO Readiness**: BASF is preparing its agricultural solutions business for a potential IPO by 2027, reflecting confidence in its integrated business model [24][25]. - **Market Positioning**: BASF aims to leverage its strong market positions, with 75% of core businesses holding top three market positions in their respective markets [46]. Conclusion - BASF is committed to executing its strategic initiatives, focusing on core business growth, cost efficiency, and innovation while navigating a challenging macroeconomic environment. The company remains optimistic about its future performance and market positioning.

Report Industry Investment Rating No information provided in the given content. Core Viewpoints of the Report - Platinum and palladium prices are highly sensitive to supply disruptions and capital flows, with historical volatility ranking high among metals. Their price trends are significantly influenced by the evolution of supply - demand structures and the macro - environment. Demand substitution is the long - term logic for price fluctuations, while price extremes are affected by macro - fluctuations, supply disruptions, and external event shocks [2][132]. - The cost of mining platinum and palladium forms a strong bottom - support for prices in the medium term. In 2024, the total sustaining cost of global platinum mines increased by 11.8% year - on - year to $884 per ounce. At present, the price of platinum is $1350 per troy ounce, reducing the possibility of further production cuts by mining enterprises, but higher prices may be needed to stimulate more supply [2][134]. - The platinum - palladium ratio reflects demand substitution and financial attribute premiums. The core driver of substitution is a long - term and significant relative premium, and the substitution cycle usually takes 3 - 5 years. After the spread between platinum and palladium converges from a high level, it will likely form an inversion due to the redistribution of downstream demand [2][134]. - The gold - platinum ratio can effectively isolate the safe - haven attribute of gold and the industrial attribute of platinum, essentially reflecting changes in economic prospects and market risk preferences. It is an effective leading indicator for predicting stock market returns, with a high correlation with the S&P 500's next - year cumulative return but a weak correlation with the A - share market [3][134]. - Platinum and palladium are positively correlated with gold and negatively correlated with the US dollar index due to their investment and safe - haven attributes; their prices are positively correlated with copper prices because of overlapping manufacturing demands; and platinum prices are trend - related to crude oil prices as rising oil prices push up mining costs and support platinum and palladium prices [4][134]. Summary by Directory 1. Introduction - The previous report comprehensively sorted out the platinum and palladium industry chains, global supply - demand situations, and their influencing factors. This report conducts an in - depth review of the historical prices of platinum and palladium, analyzes their key influencing factors, and explores medium - and long - term investment opportunities [14]. 2. Historical Supply - Demand Review of Platinum and Palladium Platinum - Supply: Historically, global platinum supply has shown a trend of high - speed growth followed by high - level shock and decline. South Africa has long dominated global platinum supply, with its share decreasing from 70% in 1990 to 58% in 2024. After 2005, recycled platinum supply gradually increased. From 1990 - 2006, platinum supply expanded rapidly, but then declined due to factors such as decreased mine grades and labor disputes in South Africa. After 2008, global primary platinum supply remained at a low level, while recycled platinum production mainly fluctuated [16]. - Demand: Overall, platinum demand has shown a trend of continuous increase followed by shock. Automobile, jewelry, and investment demands contribute the main marginal elasticity. From 1990 - 2008, global platinum demand continued to rise, mainly driven by jewelry demand before 1999 and automobile exhaust catalysts after 2000. After the 2008 financial crisis, investment demand increased, and after 2015, platinum demand entered a re - balancing stage [17]. Palladium - Supply: Historically, global palladium supply has generally shown a trend of shock and upward movement, with greater volatility than platinum. Primary palladium supply has evolved from near - monopoly by Russia to a bipolar oligopoly pattern of Russia and South Africa. After 2017, recycled palladium supply became an important source. From 1990 - 2000, Russia released a large amount of palladium inventory, and after 2000, supply shifted to mine output. From 2005 - 2019, recycled palladium production increased, and from 2020 - 2025, supply was relatively tight due to sanctions and production cuts [19][20]. - Demand: Overall, palladium demand increased and then decreased from 1990 - 2002 and then showed a long - term upward trend with shock. After 2020, it mainly fluctuated. The growth of palladium demand mainly comes from the automobile field. In the 1990s, palladium demand in the automobile exhaust catalyst field increased explosively, but it declined sharply in 2001. After 2015, the "Dieselgate" event and upgraded emission standards promoted the increase of palladium demand, but then it gradually declined due to the increase in the penetration rate of electric vehicles [20][21]. 3. Historical Price Review of Platinum and Palladium 1990 - 2001: Monopoly Behavior and Capital Resonance Triggered a Bubble - like Market for Palladium - From the beginning of 1990 to March 1997, platinum and palladium prices maintained a wide - range shock. After 1997, Russia restricted the export of platinum - group metals, and hedge funds hoarded goods, creating a shortage expectation. In 2000, the panic squeeze on TOCOM accelerated the rise of palladium prices, and platinum and palladium prices were significantly inverted. In 2001, Russia resumed palladium exports, and palladium prices plummeted. During this period, platinum prices mainly followed palladium prices, and the substitution effect of palladium occurred in various demand fields [22][25][26]. 2002 - 2008: Macro and Fundamental Resonance Drove Platinum to a Long - Bull Market - Palladium prices were under pressure due to long - term supply - demand surplus. In 2002, palladium prices dropped sharply, and although there was a short - term rebound in 2003, the overall situation remained weak. In contrast, platinum prices showed a long - bull trend. From 2002 - 2008, platinum supply was in short supply in most years, and the average annual price increased from $539 per ounce in 2002 to a historical high of $2192 per ounce in 2008, driven by factors such as the growth of platinum demand in the automobile and jewelry fields and the weakening of the US dollar. In 2008, the financial crisis led to a sharp decline in platinum prices [38][41][42]. 2009 - 2018: Pricing Returned from Macro to Fundamental, and Palladium Substituted Platinum in the Long - Term - Platinum prices generally rose and then fell, while palladium prices showed an upward trend with shock. From 2009 - 2012, palladium prices performed better than platinum prices. After 2013, the platinum - group metal market was affected by macro - policy changes and industry structural changes. The "Dieselgate" event in 2015 was a turning point, which led to a significant decline in platinum demand and an increase in palladium demand. From 2016 - 2018, upgraded global emission standards promoted the bull market of palladium and the weakening of platinum prices [45][50][57]. 2019 - 2025: External Factor Shocks Intensified, and Platinum and Palladium Demand Re - balanced - Palladium prices experienced a complete bull market, reaching a historical high of $3015 per ounce in March 2022 and then significantly回调. Platinum prices were relatively weak, mainly fluctuating in the range of $800 - $1000 per ounce and rebounding in 2025. During this period, global macro - fluctuations intensified, and multiple factors such as emission standard upgrades, geopolitical conflicts, and the transformation of new - energy vehicles affected the market supply - demand pattern of platinum and palladium. In 2025, platinum and palladium showed a pattern of "platinum strong, palladium weak" [62][67][73]. 4. Pricing Logic and Inter - Variety Linkage of Platinum and Palladium Mining Cost Forms Bottom Support, and Capex Has a Weak Correlation with Supply - Platinum - group metal mining is capital - intensive, and new mine development has a long cycle. The Capex of platinum and palladium mining enterprises is related to the current prices of platinum and palladium, but primary platinum and palladium supply has no obvious correlation with Capex due to external events in South Africa and Russia. Rising production costs in 2024 increased the bottom support of prices. Currently, platinum prices are at the median of the cost range, and higher prices may be needed to stimulate more supply [84][89][92]. Platinum - Palladium Ratio: Long - Term High Premium Drives Demand Substitution - The platinum - palladium ratio reflects demand substitution and financial attribute premiums. Since 1990, there have been three substitution effects between platinum and palladium. The core driver of substitution is long - term and significant relative premium, and the substitution cycle usually takes 3 - 5 years. Currently, the platinum - palladium ratio has been rising, and there is still room for further increase, but downstream substitution may be more smooth if the ratio rises significantly [98][101][108]. Gold - Platinum Ratio: An Excellent Indicator for Predicting Stock Market Returns - The gold - platinum ratio reflects changes in economic prospects and market risk preferences. Since 1990, it has gone through several stages of evolution. It is an effective leading indicator for predicting stock market returns, with a high correlation with the S&P 500's next - year cumulative return but a weak correlation with the A - share market [113][116][117]. Linkage of Platinum and Palladium with Other Indicators - Financial attribute: Platinum and palladium are positively correlated with gold and negatively correlated with the US dollar index, and platinum has a higher correlation. - Industrial attribute: Platinum and palladium prices are positively correlated with copper prices due to overlapping manufacturing demands. - Cost structure: Platinum prices are trend - related to crude oil prices. Rising oil prices push up mining costs and support platinum prices, and there is also a certain relationship between platinum demand and oil prices [126][127][128].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The listing of platinum and palladium futures and options meets the hard - demand of China's platinum and palladium industry, and is significant for the futures market to serve China's green development strategy and improve the global pricing mechanism of platinum and palladium [2]. - The price curves of platinum and palladium reflect the comprehensive game of automobile technology iteration, supply shocks, and macro - sentiment. The future price difference between them depends on fuel cell penetration, mine supply recovery speed, and the expansion rhythm of the recycling system [66][71]. - Gold acts as a "ballast stone" in asset allocation, while platinum is a high - elasticity gaming chip for the automotive industry and hydrogen economy [74]. Summary According to the Directory 1. Platinum and Palladium Concept and Industry Chain Overview - **Concept and Characteristics** - Platinum is a silver - white, high - density, ductile, and chemically stable precious metal with high melting and boiling points, excellent catalytic performance, and strong corrosion resistance. It is used in electronics, automotive catalysts, jewelry, etc. [6][10] - Palladium is also a platinum - group metal, with lower density than platinum, excellent ductility, and chemical stability. It has unique strong hydrogen - absorption ability and is mainly used in automotive catalysts (especially for gasoline vehicles), electronics, etc. [11][14] - **Industry Chain Characteristics** - Supply: Platinum has an Russia - South Africa duopoly supply pattern, while palladium is dominated by South Africa. Platinum mining has high costs due to deep - mining, while palladium is a by - product of nickel mining with lower costs [20]. - Demand: Platinum has rigid jewelry demand in the Asian market, so its demand elasticity is low. Palladium has no substitutes in automotive catalysts, so its demand elasticity is high [20]. - Pain Points: The industry chain faces problems such as single - origin supply risk, low demand elasticity for platinum in jewelry, and high demand elasticity and low secondary - supply recovery rate for palladium [20]. - **Industry Chain Structure** - Upstream: It is mainly the supply of primary minerals from South Africa, Russia, etc. The key challenges include high - cost mining, ESG risks, and geopolitical issues [23]. - Mid - stream: It involves refining and processing, using complex hydrometallurgy. Core participants include mining giants' refineries, professional refiners, traders, and banks [25]. - Downstream: It is the manufacturing and distribution of products, with applications in automotive catalysts, jewelry, MLCCs, etc. Key manufacturers come from different industries [27]. - Recycling: Secondary supply mainly comes from waste automotive catalysts, electronic waste, etc., accounting for about 25% of platinum supply and 30% of palladium supply [34]. 2. Platinum and Palladium Supply - Demand Conditions - **Supply - side Factors** - Mineral Supply: It is highly concentrated in South Africa and Russia. Supply is affected by factors such as the COVID - 19 pandemic, power crises, and geopolitical issues, leading to significant fluctuations [37]. - Recycling Supply: It accounts for an increasing proportion, buffering supply - side fluctuations. However, the recycling volume is affected by precious - metal price fluctuations [38]. - **Demand - side Factors** - Automotive Catalysts: Palladium is the core material for gasoline - vehicle exhaust catalysts, accounting for 84% of global palladium demand in 2023. Platinum is mainly used in diesel - vehicle catalysts, with a 45% demand share in 2023. There is a substitution effect between them, but short - term substitution is limited [42]. - Industrial and Investment Demand: China is the largest platinum - demand country, using it for jewelry, chemical catalysts, and the hydrogen - energy industry. Europe is the largest palladium - demand country, with strong demand in the automotive industry. Emerging fields such as hydrogen fuel cells and 5G electronics are long - term demand growth points [43]. - **Inventory - side Factors** - Global platinum and palladium reserves have shown a trend of "first decline, then rise, and then stability" in the past 30 years. The sharp increase in 2024 is due to resource re - evaluation and large - scale resource upgrades in South Africa and Zimbabwe [48]. - **Import - Export Factors** - China's platinum - group metal resources are scarce, and the industry depends on imports. Import and export are affected by geopolitical, policy, and production - capacity factors. China encourages recycling technology R & D and hydrogen - energy industry investment to reduce import risks [51]. - Seasonal Patterns: Platinum imports peak from November to January and in September - October, and are low in February. Palladium imports peak from December to February and may have small peaks in July - August [54]. 3. Platinum and Palladium Spot and Futures Market Prices - **Futures Market Prices** - From 2011 to 2025, the futures prices of platinum and palladium can be divided into three stages. The price difference between them is mainly affected by automotive technology changes, supply - demand imbalances, and economic expectations [66]. - **Spot Market Prices** - From 2007 to 2025, the spot prices of platinum and palladium can also be divided into three stages. The price difference is mainly due to the "technology change" in automotive catalysts and the development of the recycling system [70]. - **Platinum - Gold Price Comparison** - In terms of price, gold is rarely surpassed by platinum. In terms of trend rhythm, gold shows a "step - by - step slow - bull" trend, while platinum has large fluctuations. In terms of divergence, the gold - platinum price ratio has reached a historical extreme, reflecting the dual discount of platinum [73][74]. 4. Platinum and Palladium Futures and Options Introduction - **Futures Contracts** - Platinum and palladium futures contracts have a trading unit of 1000 grams/hand, a minimum price change of 0.05 yuan/gram, a daily price limit of 4%, and a minimum margin of 5%. They use physical delivery, and the delivery months are February, April, June, August, October, and December [78]. - **Options Contracts** - Platinum and palladium options contracts are based on their respective futures contracts. They have a trading unit of 1 hand (1000 grams) of the underlying futures contract, a minimum price change of 0.05 yuan/gram, and an American - style exercise method [100].

Core Viewpoint - The company has demonstrated strong performance in Q1, driven by effective efficiency measures and solid business fundamentals, with positive contributions from various business segments [1][2]. Group 1: Q1 Performance - The Catalytic Business Group showed strong results, particularly in automotive catalysts, benefiting from its market position and customer coverage [1]. - The Recovery Business Group also performed well, with rising prices of precious metals enhancing the performance of precious metal refining and management businesses [1]. - Demand for gold and silver as safe-haven investments supported the jewelry and industrial metals sectors amid macroeconomic and geopolitical uncertainties [1]. Group 2: Special Materials and Battery Solutions - The Special Materials Business Group's overall performance met expectations, with the Battery Materials Solutions Group also aligning with forecasts [2]. Group 3: Impact of US Tariff Policy - The new US tariff policy, effective from April, is expected to have limited direct impact on the company's operations by 2025, thanks to customer contract structures and a flexible global supply chain [3]. Group 4: 2025 Outlook - The company confirmed its 2025 outlook, projecting adjusted EBITDA to be between €720 million and €780 million, assuming stable metal prices and no significant new developments [4].