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shaping

the Future

Facts and Figures


2008
 

BasF
2008
04 aBOut us Our OrganizatiOn
Clear strategy 04 /
Measurable goals 06 / We are the world’s leading
Six segments 08 / chemical company:
Strong tradition 1 /
the Chemical Company
14 BasF WOrldWide
Global presence 14 / Our prOduCts
On site in the regions 16 /
Our portfolio ranges from oil
18 glOBal and gas to chemicals, plastics,
Challenges
For a better future 18 / performance products, agricultural
Climate protection 0 / products and fine chemicals.
Energy and resources  /
Housing and construction 4 /
Health and nutrition 6 / Our eCOnOmiC perFOrmanCe
Mobility and communication 8 /
Demographic change 0 /
sales 2007:
€57,951 million
 respOnsiBle
aCtiOn income from operations (eBit):
Global standards for safety
and the environment  /
€7,316 million
The best team 4 /
Social commitment 6 / Our emplOyees
8 eCOnOmiC number of employees at
perFOrmanCe the end of 2007: 95,175
Strong growth: BASF shares 8 /
Positive business development 9 /

4 serviCe
4 about us 007
BASF 008 007
BASF 008 about us 

FaCt #01:
Clear strategy

BasF is the world’s leading chemical company – We earn a premium On Our


COst OF Capital
We help Our CustOmers
tO Be even mOre suCCessFul
the Chemical Company.
We increase the value of Our customers’ success
We aim to constantly increase the value of our our company by earning is also our success.
company by profitable growth and to remain our cost of capital plus We therefore intensively
a premium on it. analyze our customers’
the number one in chemistry. With innovation specific requirements
and new technologies, we open up new market and develop the most
opportunities. We combine economic success suitable tailored solutions
in collaboration with them.
with environmental protection and social
responsibilty.

to realize our goals everyday and across the We FOrm the Best team
in industry
We ensure sustainaBle
develOpment
company, the BasF team aligns its activities
with four guidelines: BasF 2015. Our employees make use Value-adding growth can
of their individual strengths only be successful in the
and competencies for the long-term if economic
success of the company. success is combined with
environmental protection
and social responsibility.

corporate.basf.com/strategy

suCCess Based On values Our values

Long-term success requires strategic goals and clearly defined principles. • Sustainable profitable performance
This is why we have established a binding value system. Six values • Innovation for the success of our customers
provide the framework for all our decisions. They form our commitment • Safety, health and environmental protection
to conducting business responsibly. We apply these values in our day- • Personal and professional competence
to-day business and as a result, strengthen the trust of our employees • Mutual respect and open dialog
and partners in our activities. • Integrity
6 about us BASF 008
007 BASF 008
007 about us 7

FaCt #02:
measuraBle gOals

economic goals environment and safety – 2020 goals

premium on cost of capital: Earn an EBIT at least as high as the improvement of specific energy efficiency of
cost of capital percentage on the assets of the operating divisions. production processes (baseline 00)

+ 25%
• 007 goal: At least € .4 billion
• Status at year-end 007: We earned a premium of € ,89 million
on our cost of capital of € ,41 million. new goal

dividend: Dividend per share to be increased annually or at least


to remain at the previous year’s level. emissions of greenhouse gases per metric ton of
sales product (baseline 00)
• 007 goal: At least € .00

– 25%
• Status at year-end 007: Increase of 0% to € .90

status at year-end 2007: – 16.6 %

employee goals reduction in emissions to water of


heavy metals (baseline 00)

– 60%
senior executives with international experience
• Long-term goal: Increase the proportion of senior executives
with international experience to over 70%.
status at year-end 2007: – 44.3 %
• Status at year-end 007: 7%

Women in senior executive positions reduction in transportation accidents


• Long-term goal: Increase the proportion of female senior (baseline 00)

– 70%
executives (baseline 00: .%)
• Status at year-end 007: .6%
status at year-end 2007: – 50.0 %

Further goals can be found at: corporate.basf.com/goals

dr. Jürgen hamBreCht


CHAIrMAn OF THE BOArD OF ExECuTIVE DIrECTOrS OF BASF SE

“We want to grow faster than the chemical market


annually and we are convinced that BASF Group will
at least earn its cost of capital every year. For 008, we
aim to increase sales and slightly improve income before
special items.”
8 about us BASF 008
007 BASF 008
007 about us 9

FaCt #03: Chemicals


siX segments This segment combines the operating divisions Inorganics,
Petrochemicals and Intermediates. They sell their products
to customers in the pharmaceutical, construction, textile and
automotive industries and supply other BASF segments with
chemicals for the manufacture of higher value products.

We want to focus our business even more closely on our • The Inorganics portfolio ranges from inorganic basic chemi-
customers, which is why as of January 1, 2008, we have added cals to glues and specialties such as electronic chemicals for
a sixth segment. Our segments have been restructured the semiconductor and flat screen industries.
according to related products, customer industries and • With its broad range of basic chemicals, the Petrochemicals
production processes. This will enable us to more effectively division forms the basis of our value-adding chains. In addition,
combine our competencies and knowledge and bring our it produces solvents and plasticizers for the chemical and
products and system solutions faster to market. In addition, plastics industries.
our investors will be better able to assess BASF. • The Intermediates segment comprises products that are
used as starting materials for products such as detergents,
plastics, textile fibers, paints and coatings as well as
pharmaceuticals.
neW segment struCture OF BasF

plastics
Chemicals Inorganics Petrochemicals Intermediates The Plastics segment includes the operating divisions Perform-
ance Polymers and Polyurethanes.
Performance
Plastics Polyurethanes
Polymers
• The Performance Polymers division develops engineering
Performance Acrylics & Performance
Products Dispersions
Care Chemicals
Chemicals plastics, polyamides, polyamide intermediates, as well as
specialty styrenic polymers and foam precursors. They are
Functional Construction
Solutions
Catalysts
Chemicals
Coatings used in packaging, and in the construction, automotive and
the electrical industries.
Agricultural Crop • The Polyurethanes division’s products are highly versatile: as
Solutions Protection
soft foams, they can be found in car seats for example, and
Oil & Gas Oil & Gas as rigid foams in household appliances.

products for microchip manufacture -- high performance and energy saving --


BASF scientists develop ultrapure process chemicals for the electronic industry. our engineering plastic ultradur® High Speed.
10 about us 007
BASF 008 007
BASF 008 about us 11

performance products • The Construction Chemicals division manufactures products


This segment consists of the Acrylics & Dispersions, Care that make construction safer, more efficient, more environ-
Chemicals and Performance Chemicals divisions, which develop mentally sound and more attractive. These include concrete
performance products to improve the processes and end products additives and products such as tile adhesives.
of our customers. • The Coatings division supplies automotive coatings, automotive
refinishes and industrial coatings, as well as decorative paints.
• Functional polymers from the Acrylics & Dispersions division These protect surfaces and give them color and luster.
can be found in countless everyday products: they make
diapers more absorbent, for example, and stamps self-adhesive.
• Our new Care Chemicals division combines all activities
that contribute to people’s well-being. These include vitamins
for food supplements and light stabilizers for sun creams.
• The Performance Chemicals division develops solutions for
the oil, automotive, coatings and plastics industries, and
for the manufacture of leather and textiles. Examples include
resins and pigments, and fuel additives.

Functional solutions
This new segment integrates three operating divisions that
develop system solutions and innovative products for specific
customers and industries, in particular for the automotive and
construction sectors: Catalysts, Construction Chemicals and
Coatings.

• The Catalysts division develops and manufactures automotive


and industrial catalysts. Catalysts in automobiles convert
harmful substances produced during combustion into harm-
less end products. In chemical plants and oil refineries, they Construction work on the london underground -- our products support engineers
throughout the construction process.
enhance raw material and energy efficiency.

superabsorbent polymers make diapers more absorbent and comfortable. Catalysts are used in most chemical processes and help to drive the innovation process.
1 about us BASF 008 BASF 008 about us 1

FaCt #04:
strOng traditiOn

1865 – 1901: Friedrich Engelhorn founds Badische Anilin &


Soda Fabrik to produce coal tar dyes. Soon thereafter, the
company gains a leading position in the world dyes market
with methylene blue, alizarin and indigo.
1901 – 1925: The synthesis of ammonia by the Haber-Bosch
process paves the way for the production of synthetic nitrogen
fertilizers.
1925 – 1945: BASF becomes part of IG Farbenindustrie AG.
healthy, stress-tolerant crops -- customers all over the world count on our AgCelenceTM
brand of agricultural products. Advances in high-pressure technology enable the production of
synthetic gasoline and rubber, and products from acetylene.

agricultural solutions 1945 – 1953: reconstruction after the severe damage during
the Second World War takes a number of years. BASF is
Crop protection products safeguard crops against fungal disease,
reestablished as an independent company in 19.
insects and weeds, improve quality and ensure yields. research
in the field of plant biotechnology focuses on crops for more 1953 – 1965: Germany’s economic miracle paves the way for
efficient agriculture, healthier nutrition and for use as renewable the plastics era. BASF expands into markets with products
raw materials. such as polystyrene, Styropor®, nylon and polyethylene.
1965 – 2004: BASF develops into a transnational company.
Oil & gas
since 2004: BASF is the world’s leading chemical company –
As Germany’s biggest oil and gas company, our exploration and The Chemical Company. In 00, the new Verbund site in
production operations are concentrated on oil and gas rich regions nanjing, China, begins operating, the largest single investment
in Europe, north Africa, South America, plus russia and the project in BASF’s history. In 006, BASF buys Engelhard
Caspian Sea region. Together with our russian partner Gazprom, Corporation (uSA), Johnson Polymer and the construction
we are active in the trading, transportation, and storage of natural chemicals business of Degussa. ///
gas in Europe. ///

corporate.basf.com/history

securing europe’s energy supplies --


construction of the nord Stream gas pipeline from russia to Germany.

Change OF legal FOrm

2008: With effect from January 14, BASF Aktiengesellschaft is a


European Company (SE). This decision marks a clear commitment
to our home market in Europe. The reduction of the Supervisory
Board to 1 members creates the structural basis for improved
corporate governance.
14 BasF worldwide BASF 008 BASF 008 BasF worldwide 1

FaCt #05: HEADQuArTErS, rEGIOnAL HEADQuArTEr

glOBal presenCe
VErBunD SITE
MAJOr
PrODuCTIOn SITE

eurOpe 2007
LUDWIGSHAFEN EMPLOyEES: 61,00 1
SALES: €,67 MILLIOn 
EBIT: €,41 MILLIOn
ANTWERP

FLORHAM
PARK
FREEPORT
NANJING
GEISMAR

HONG KONG

nOrth ameriCa 2007


KUANTAN
EMPLOyEES: 1,191 1 SINGAPORE
SALES: €11,98 MILLIOn 
EBIT: €76 MILLIOn

asia paCiFiC 2007


EMPLOyEES: 1,78 1
sOuth ameriCa, SÃO SALES: €9,61 MILLIOn 
aFriCa,
PAULO EBIT: €88 MILLIOn
middle east 2007
EMPLOyEES: ,686 1
SALES: €4,09 MILLIOn 
EBIT: €11 MILLIOn
1
AS OF DECEMBEr 1, 007

By LOCATIOn OF CuSTOMEr

andrea Baker -- senior production technician, Freeport, Texas. aboubacri Ba -- greenhouse technician, Ghent, Belgium.
16 BasF worldwide BASF 008 BASF 008 BasF worldwide 17

FaCt #06: • Key customer industries include chemicals, automotive,


On site agriculture, construction, personal care, health and nutrition,
packaging, and consumer products.
in the regiOns
asia pacific
• In 007, sales in Asia Pacific increased by 18.0% to €9,61
million1. Income from operations increased significantly by
BASF is the world’s leading chemical company – The Chemical €647 million to €88 million.
Company, with over 95,000 employees as well as close to 100 • BASF started selling dyes in the Asia Pacific region more than
large and numerous smaller production sites worldwide, and 100 years ago. Today the company has a production network
customers and partners in almost all countries of the world. with almost 100 sites and serves customers in more than
1 countries in the region.
europe • BASF’s goal in Asia Pacific is to achieve 0% of global sales
• In 007, sales in Europe rose by 9.6% to €,67 million1. and earnings in the chemical business by 010, with 70%
At €,41 million, income from operations was slightly lower coming from local production.
than in 006.
• BASF’s global headquarters are in Ludwigshafen, Germany. south america, africa, middle east
Ludwigshafen is also the main location of our technology • In 007, sales in the region rose by 18.% to €4,09 million1
platforms and competence centers. compared with 006. Earnings improved by 44.7% to
• The 10 square kilometer site is BASF Group’s biggest €11 million.
Verbund site and the world’s largest integrated chemical • In South America, we are known as a leading producer of
complex. agricultural products and coatings, in particular decorative
paints. Decorative paints are marketed under the Suvinil®
north america brand here and have a strong market position.
• In 007, sales in north America (united States, Canada and • The southern part of the continent is one of the key regions
Mexico) rose by .% to €11,98 million1. Income from for BASF’s oil and gas activities. ///
operations amounted to €76 million, which was 1.%
lower than in 006. 1
by location of customer
• BASF is among the largest producers and marketers of
chemicals and related products in north America.

corporate.basf.com/regions

afonso maria da silva (left) and Fabricio rodrigo de souza --


production workers, Guaratinguetá, Brazil. zhou huan -- chemical engineer, nanjing, China.
18 global challenges BASF 008 BASF 008 global challenges 19

FOr a Our innovative capabilities serve as a lever for increased


sustainability. We develop processes, products and solutions
Better Future that combine economic and environmental added value.
This is our contribution to a sustainable future for us and for
future generations.
more information on sustainability from page 32.

• shaping the future with innovation: We focus on innovations


As the world’s leading chemical company, we play a decisive and new technologies to develop new market opportunities.
role in shaping the future. Sustainable actions as well as the Our intelligent products and system solutions help to shape
ongoing quest for innovation drive our business activities. the future for our customers and business partners.
They enable us to find answers to global challenges, such as
climate change or the scarcity of natural resources. We not In our research centers, our scientists, together with customers,
only set ourselves high energy efficiency goals, but with our startup companies, research institutes and universities,
innovative products we help our customers to save resources develop the chemistry of the future. Overall, our global
and energy, protect the climate and environment and in this research network comprises more than 1,800 collaborative
way grow sustainably. This is our key to long-term growth. partnerships.

• success through sustainability: Continuous profitable growth Between 004 and 007, research and development expen-
is only possible if economic success goes hand in hand with diture rose by 40% to nearly €1.4 billion. From 010, we
responsibility for society and the environment. We follow this expect product innovations alone to generate annual sales
principle of sustainable development in all our business of more than €4 billion.
activities. This means social and environmental issues are
integrated into our commercial activities and contribute to As part of our research strategy, we concentrate key tech-
our long-term economic success. Sustainable development nologies of particular relevance to the future in five growth
influences our business activities on two levels: it helps to clusters: energy management, nanotechnology, raw material
generate new business opportunities and minimizes our risk. change, white (industrial) biotechnology and plant biotech-
nology. Innovations from these areas provide solutions to
some of the world’s biggest challenges. ///

corporate.basf.com/future corporate.basf.com/sustainability
corporate.basf.com/innovations

puBliC reCOgnitiOn FOr sustainaBility researCh & develOpment

• BASF’s shares included in the Dow Jones Sustainability World • BASF tops the chemical industry worldwide in r&D spending,
Index for the seventh year running. with expenditures of €1,80 million in 007.
• BASF China receives “Best Corporate Citizenship Award” • A spending increase of €1,40 million is budgeted for 008.
for the third year running. • More than 8,600 employees (007) in r&D worldwide.
• BASF included in the “Global 100” listing of the world’s most
sustainable companies, for the third year running.
0 global challenges BASF 008 BASF 008 global challenges 1

Climate FaCtOr 3: BasF’s CarBOn BalanCe

prOteCtiOn
1

1
greenhOuse gas emissiOns
metriC tOns per year

87 milliOn
0
greenhOuse gas savings
metriC tOns per year

252 milliOn
-1
Climate protection is a global task for industry and society.
BASF offers diverse technologies and products for climate
protection. We are the world’s first industrial organization to -
3
have drawn up a comprehensive carbon balance. The data
shows we can protect the climate with modern chemistry. -

Our products can save three times more greenhouse gas


emissions than the entire amount caused by the production
and disposal of all BASF products. We want to maintain or 3:1 for more climate protection -- BASF products can save three times more greenhouse
gas emissions than the entire amount caused by the production and disposal of all BASF
even improve this Factor 3. products.

• research for the future: Efficient energy production and • Climate protection Officer: At the beginning of 008, we
reduced energy consumption not only contribute substantially were the world’s first industrial organization to appoint a
to climate protection, they are also in BASF’s economic interest. Climate Protection Officer. As a member of our Sustainability
In 008, we therefore plan to invest more than €400 million – Council, he will coordinate all BASF activities in the area of
about a third of our research expenditures – in manufacturing climate protection worldwide. These include topics such as
processes that enable us and our customers to save energy greenhouse gas emissions, production and disposal as well
and raw materials, in projects that specifically aim to conserve as the long-term positioning of BASF in the area of climate
resources, and in new technologies for tomorrow’s materials protection. BASF’s Climate Protection Officer will also
and energy sources. establish networks with business units and research. ///

BasF products can protect the climate. Further information on the following pages.

corporate.basf.com/future/climate

2020 gOal – greenhOuse gas emissiOns


Our main Climate prOteCtiOn gOal (EMISSIOnS PEr METrIC TOn OF SALES PrODuCT)

Our previous goal of cutting specific greenhouse gas emissions by

– 25%
10% by 01 was already reached in 007. using 00 as a baseline,
we have now set a new goal of reducing specific greenhouse gas
emissions per metric ton of sales product by % by 00.
 global challenges BASF 008 BASF 008 global challenges 

energy and
resOurCes

Over the past 40 years, global energy consumption has more


than doubled. Our key to combining climate protection,
resource conservation and competitive advantage is energy
efficiency. At our sites we produce energy efficiently and
seek solutions for the energy supply of the future. We help
our customers to save energy with innovative products and
technologies. new energy source -- solar cell technology based on organic materials.

• reliable energy supply: With our “gas for Europe” strategy, • renewable raw materials: We are offering our customers
we and our partner Gazprom are making an important contrib- new ways of using cellulose. until now, its use was extremely
ution to future gas supplies for Germany and Europe. This means limited due to a lack of suitable solvents. now, with our ionic
finding and producing new gas in and around Europe, and liquids – liquid salts – cellulose can be processed much more
helping to shape the connecting infrastructure in order to bring easily. This opens up new possibilities for this renewable
the gas to European customers. resource – for the manufacture of textile fibers, for example.

• Connecting resources intelligently: Our internal Verbund • low-cost solar energy with thin films: In our research
system uses crude oil and natural gas as raw materials and laboratory for organic electronics we are developing solar
simultaneously as fuel to generate electricity and steam. Heat cells based on organic semi-conductive materials that can
from production processes is not discharged into the environ- generate electricity from light. They are flexible and as thin
ment, but captured to power downstream production plants. as plastic film. This organic photovoltaics technology is
This principle is used at all our major production sites. Without paving the way for sustainable energy production and will
the Energy Verbund, the total energy needed to generate elec- make solar power more competitive. ///
tricity and steam would have been around 6% higher in 007.

ecovio l Foam -- a plastic made from renewable raw materials.

COmpletely BiOdegradaBle

008 will see the market launch of our biodegradable plastic Ecovio®
L Foam. It consists of around 7 % polylactic acid, which is derived
from corn (maize). Its other component is the well-established bio-
degradable plastic Ecoflex®. Ecovio L Foam can, for example, be used
in food packaging.
4 global challenges BASF 008 BASF 008 global challenges 

hOusing
and COnstruCtiOn

By 2025, almost two-thirds of the world’s population will be


living in cities. Tomorrow’s megacities present new challenges
to industry and society: we will have to build houses, bridges
and roads more economically – without running out of energy.
When building or renovating our homes, we can all contribute
to energy efficiency and climate protection with BASF’s help.
storebælt Bridge, denmark -- our additives ensure durable, stress resistant concrete.
• saving heating costs and energy: This is possible with
neopor®, a plastic granule material used to construct thermal • energy efficient housing: Our low energy homes worldwide
insulation panels for walls and roofs. It contains graphite that show that energy efficient construction and modernization is
reflects thermal radiation like a mirror, thus reducing heat both technically possible and economically feasible. The latest
losses. Our thermal insulation systems HeckTM and SenergyTM example is the “BASF House”, which opened in January 008
provide, alongside thermal insulation, additional built-in layers – a model project by BASF and the university of nottingham
to protect and improve the appearance of exteriors. in the uK. A wide range of our innovative materials have been
incorporated into the house.
• temperature balance indoors: Our insulating material
Micronal® PCM ensures pleasant indoor temperatures when • Clever concept for concrete: Concrete must be ductile for
it’s hot outside: the tiny plastic particles contain a wax the construction of bridges or high rises and also extremely
storage medium in their cores. When the temperature rises, stress-resistant once it hardens. With our Smart Dynamic
the wax melts and absorbs energy in the form of heat. When ConstructionTM system, customers can build in a more energy
the temperature drops, the wax hardens and the stored heat efficient and economical way, and improve the durability of
is released. the concrete. Thanks to its composition and high performance
additives, the concrete does not have to be mechanically
compressed, thus saving labor and energy. ///

corporate.basf.com/future/housing

pOssiBle CO2 savings in germany


reFurBishment saves mOney and CO2 (PEr yEAr FrOM BuILDInG rEnOVATIOnS In METrIC TOnS)

80 million metric tons: this much carbon dioxide (CO) could be saved

– 80 million
annually if all 4 million old housing units in Germany were insulated
to consume less than 7 liters of heating oil per square meter per year.
That’s as much CO as 14 power plants emit annually.
6 global challenges BASF 008 BASF 008 global challenges 7

health and • high-yield and healthy crops: The agricultural industry will
not be able to produce as much as we need only by using
nutritiOn conventional cultivation methods, fertilizers and crop protect-
ion products. This is why we are focusing on plant biotech-
nology. In spring 007, we launched a long-term cooperation
with the biotechnology company Monsanto. Our joint aim is
to develop high-yielding crops that are more resistant to
unfavorable environmental influences such as drought. Our
In 15 years, the world will be home to almost 8 billion people – researchers are also working on genetically enhanced oil
1.5 billion more than today. How will it be possible to supply crops with a higher content of omega- fatty acids to reduce
a growing world population with healthy food? And how can the risk of cardiovascular disease.
living conditions in underdeveloped countries be improved?
BASF is facing up to these challenges and developing • Clean drinking water: Every day, around 6,000 children die
versatile solutions to improve the quality of life for people all from diseases caused by unsafe drinking water. Our products
over the world. help to improve the quality of drinking water. One good
example is ABATE®, which kills the larvae of disease-carrying
organisms in standing water. ABATE has helped to almost
success in the battle against the guinea worm -- completely eradicate the guinea worm, a parasite endemic in
ABATE kills harmful disease-carrying insects in standing water.
Africa that causes painful, debilitating infections.

• healthier nutrition: As the world’s leading manufacturer of


vitamin and carotenoids, we are improving the quality and
nutritional content of numerous foods. One example is beta-
carotene or provitamin A, which can be added to multivitamin
juice. The body converts beta-carotene into the essential
vitamin A. ///

corporate.basf.com/future/nutrition

protection against cavities -- BASF is developing innovative products for oral hygiene.

laCtiC aCid BaCteria FOr neW BOdy Care prOduCts

Together with our research partner OrganoBalance, Berlin, Germany,


we are investigating new properties of lactobacilli. These natural micro-
organisms can accelerate the regeneration of the skin's protective
microbial flora after washing or showering or can fight tooth decay.
The first oral hygiene products are to be marketed soon.
8 global challenges BASF 008 BASF 008 global challenges 9

mOBility and
COmmuniCatiOn

Roads are crowded all over the world: by 2020 there will be
about 1.4 billion automobiles worldwide and all of them will
need fuel and will produce exhaust emissions. Together with
the automotive industry, we are developing solutions to make
automobiles more environmentally friendly. In addition, our
chemistry is helping to develop new possibilities for inform-
ation and communication technology. Collaboration with Ford -- BASF developed the Electric Orange paint color for Ford.

• BasF catalysts lower emissions: In 007, in the united • Keeping up with the news on the road: When you’re
States, we won the Society of Automotive Engineers innovation travelling, you want to stay connected. Our researchers are
prize for a new high-performance catalyst. It makes it possible developing new membrane systems for fuel cells. Fuel cells
for the first time to convert up to 96% of a vehicle’s emissions will one day be able to grid-independently, recharge or
into harmless end products. More than  million vehicles in the replace cell phone or laptop batteries. Our Paliocolor® liquid
united States have already been fitted with this technology. crystals also ensure that cell phone or laptop displays deliver
a sharp image from any angle.
• Clean air thanks to additives and plastics: Our fuel additives
also ensure better air quality. They ensure that engines stay • reducing solvents in coatings: BASF’s water-based coatings
cleaner, last longer, perform better and produce fewer harmful are environmentally sustainable and offer our customers in
emissions. In order to reduce fuel consumption even further, the automotive industry coating solutions that help to protect
automobile manufacturers are also using BASF plastics. These the environment. In contrast to conventional base coats,
have similar or even better properties than metal components, water-based coatings contain mostly water instead of organic
but weigh less. The benefits: lower fuel consumption and less solvents. This considerably reduces solvent emissions. ///
CO emissions.

corporate.basf.com/future/mobility

Beijing buses contain environmentally friendly BASF technology.

Catalysts FOr BeiJing's puBliC transpOrt system

We fitted several hundred local public transport buses in Beijing with


BASF catalysts, thereby helping to meet Euro norm IV standards
which are to become compulsory in China from 010 onward.
Our catalysts reduce toxic nitrous oxides in bus exhausts by more
than 60%.
0 global challenges BASF 008 BASF 008 global challenges 1

demOgraphiC • Fit for the future with generations@Work: In just a few


years, the majority of people in Western Europe and Japan
Change will be over 0. This will also present new challenges for
BASF. How can young and older employees best learn from
one another? What training opportunities exist? And how will
we succeed in attracting the best professionals in the future?
The “Generations@Work” program provides answers to these
questions. In 1 projects, employees are drawing up proposals
People are living and working longer and having fewer children. on what the jobs of the future might look like, how to reconcile
Demographic change is particularly pronounced in western a career with family life, what health promotion measures
countries. But can’t this change also be an opportunity? should look like, or how best to pass on specialist knowledge.
We are convinced that it can, which is why we are working Generations@Work was launched in Ludwigshafen, Germany,
actively – for our employees and for our company. and has now been expanded to include selected group
companies in all regions.

• training: Employees at the Ludwigshafen site can take part


in further training throughout their careers. In addition, we are
lifelong learning -- putting more focus on e-learning: our web-based European
employees at BASF’s learning center in Ludwigshafen, Germany.
Learning Portal offers courses in six languages. Our employees
in the united States may use Harvard Business School and
Cornell university’s broad-based e-learning programs.

• Career and family: Our daycare centers at our German sites


in Ludwigshafen and Kassel help parents to more easily resume
their careers after parental leave. In Brazil, our “Life in Balance”
program offers working mothers among other things a grant
to pay for two years of daycare. ///

corporate.basf.com/future/demography

BasF grOup emplOyee struCture 2007


generatiOns@WOrK (PrOPOrTIOn OF EMPLOyEES In PErCEnT)

People in Western Europe and Japan are living and 0% 20% 40%

working longer. This creates new challenges for BASF. Up to and including 25 years 7.3
Generations@Work will help us to meet this challenge Between 26 and 39 years 37.3
and ensure our productivity and innovative capability. Between 40 and 54 years 46.3
55 years and older 9.1
 responsible action BASF 008 BASF 008 responsible action 

FaCt #07: reduCtiOn OF transpOrtatiOn aCCidents

glOBal standards PEr 10,000 SHIPMEnTS (rEDuCTIOn COMPArED WITH BASELInE 00: –0%)

FOr saFety and 0 0.2 0.4 0.6

the envirOnment 2007 0.28


2006 0.45
2005 0.47
2004 0.50
Whoever wants to enjoy long-term success has to conduct 2003 0.56
their business in a sustainable manner. By acting responsibly
we are able to integrate sustainability into our business
activities. We have set ourselves ambitious environmental We significantly reduced the number of transportation accidents in 007
and climate goals. Our social responsibility also includes compared with the previous year. The reduction is due to a continuous
system of checks and support.
ensuring the safety of our employees, plants and products.

• new environmental goals: We have global and quantifiable


environmental goals – we want to reduce emissions and make • added value through sustainability: We help our customers
even better use of available resources. Since 00, one of our to integrate environmental protection and social responsibility
global environmental goals has been the constant reduction into their business processes. Our “Success – Added Value
of greenhouse gases. Many of our goals have been achieved through Sustainability” initiative offers them our combined
earlier than planned through efficient processes, innovations expertise in environmental protection, health and safety, and
and discipline. In 008, we have therefore set ourselves sustainability management. Examples include help in imple-
challenging new goals that we intend to reach by 00. menting rEACH or wastewater advice.

• global safety standards: We work continuously to ensure • product stewardship: We make sure that our products are
the safety and health of our employees, the reliability of our safe and do not pose a danger to people or the environment
plants and the safe distribution of our products. We have when they are used responsibly and in the manner intended.
defined clear procedures that are laid down in uniform guide- We ensure that the information we provide is always up to
lines worldwide. date and are quick to include new data in our risk assess-
ments. All regions are incorporated into a global product data-
base, enabling us to provide information about our products
worldwide at any time. ///

corporate.basf.com/environment

safe product transport --


we use recognized assessment systems to evaluate our carriers.

COmmitment tO respOnsiBle Care

Safety for people and the environment is BASF's top priority. Our
commitment is aligned with the principles of responsible Care®,
the global chemical industry initiative. We check the safety and
quality standards of transport companies in depth before we entrust
them with our products.
4 responsible action BASF 008 BASF 008 responsible action 

FaCt #08: • diversity: We view the diversity of our workforce at all levels
the Best team as a competitive advantage and as an enrichment to the
company. Different cultural backgrounds, experiences as well
as ideas and approaches help us to meet the challenges of
our markets and customers faster and more creatively. This is
why greater internationalization and equality of opportunity
are an important focus for employee development at BASF.
In 008, we launched the “Diversity & Inclusion” project to
integrate diversity more deeply into the company.

• Feedback for managers: Our management culture is based


on open dialog, trust, motivation, and cooperation. This is
why it’s not only managers who conduct appraisals of their
employees at BASF, but vice versa too. In manager-feedback
sessions, employees describe to their supervisors how they
perceive their behavior – important information for their
leadership development.

• Family and career: One important element of our personnel


policy and an aspect of our Generations@Work program, is
to further enable employees to balance career and family. We
therefore offer our employees models for flexible working
hours as far as possible.
dr. Julia Brodersen and torsten renz -- white (industrial) biotechnology research, more information about generations@Work on pages 30 and 31.
Ludwigshafen, Germany.

• training: In 007, BASF spent a total of €11. million


BASF’s success is based on the performance of its employees on education and training (006: €1. million). Overall,
around the world. This is why we want them to fully realize we trained ,160 young people in 16 countries in 0 pro-
their potential and strengths. We attach particular importance fessions. ///
to an ongoing dialog between employees and management.
This generates trust and promotes knowledge transfer and
innovative strength in the company.

corporate.basf.com/employees

BasF emplOyees
(AS OF DECEMBEr 1, 007) emplOyees WOrldWide

At the end of 007, BASF had 9,17 employees world-

95,175
wide. Moreover, , employees from other companies
provided technical and other services at our sites.
6 responsible action BASF 008 BASF 008 responsible action 7

FaCt #09: • securing the future through education: Education is the


sOCial key to the future of our children and our society. By investing
in education, we are also ensuring the long term competitive-
COmmitment ness of our company. We have already established Kids’ Labs
for children and young people in 1 countries, where they
can carry out exciting experiments and discover the world of
chemistry. More than 170,000 children have participated
worldwide since the labs were first introduced 11 years ago.

• interest in science: As the world’s leading chemical company,


we want to encourage an interest in science. In 007, for
example, we supported the “Science Express” in India.
The train is a state-of-the-art mobile science exhibition that
from October 007 to June 008 will visit more than 0 cities
in India and aims to foster an interest in science, especially
among young people. At our site in Brazil, we have launched
an educational program called “reAção” (reAction) intended
to improve science teaching in schools.

• dialog with our neighbors: We have established Community


Advisory Panels (CAPs) or neighborhood forums worldwide,
in particular at our production sites. Their aim is to foster
regular and close dialog with our neighbors. Currently there
BasF Kids' lab -- Children and young people discover the world of chemistry. are 66 CAPs at BASF sites. ///

Our economic success depends on social acceptance and on


the confidence that those around us have in our actions. For
BASF, having a future-oriented corporate policy means taking
on social responsibility. This applies especially in the commu-
nities and regions in which our sites are located. Education is
the focal point of our social commitment.

corporate.basf.com/society

BasF grOup dOnatiOns, spOnsOring and OWn prOJeCts in 2007


dOnatiOns, spOnsOring and OWn prOJeCts (MILLIOn €)

In 007, the BASF Group spent a total of €7. million 6 1


2

on promoting projects (006: €67. million). Of the 1 -- Science: 5.0 (6.6%) 3


4 -- Sports: 3.0 (4.0%)
total amount .% was donated and 64.7% was 2 -- Society: 3.9 (5.2%) €75.3 5 -- Education: 44.9 (59.7%)
spent on sponsoring and funding for our own projects. 3 -- Culture: 12.4 (16.4%) million
4 6 -- Other: 6.1 (8.1%)

5
8 economic performance BASF 008 BASF 008 economic performance 9

FaCt #10: FaCt #11:


strOng grOWth: pOsitive
BasF shares Business develOpment

In 2007, BASF’s share price increased by 37.3% and reached BASF Group remained on its successful course in 2007.
a record level of €101.61 in December. Shareholders who Sales and income from operations were significantly higher
invested their dividends increased the value of their holding than in the previous record year of 2006. This was driven in
by 42.0%. The proposed dividend for 2007 of €3.90 per share particular by organic growth and the positive development
exceeds the previous year’s level by 30%. of the businesses acquired in 2006.

Change in value OF an investment in BasF shares 2007 sales 2003 – 2007 (million €)
(with dividends reinvested, indexed)
60,000 57,951
JAN – MAR APR – JUN JUL – SEP OCT – DEC 42.0%
140 52,610

45,000 42,745
130 37,537
26.7% 33,361
22.3% 30,000
120

110 9.7% 15,000

100
0
20031 2004 2005 2006 2007
90
Significant increase in sales compared with 006 (+10.%) due to higher
� BASF � DAX 30 � EURO STOXX MSCI World Chemicals
volumes and the contribution of the businesses acquired in mid-006
1
according to German Commercial Code

dividend per share 1998 – 2007 (€ per share) inCOme FrOm OperatiOns 2003 – 2007 (million €)

4 3.90 8,000 7,316


6,750
3.00 5,830
3 6,000
5,193

2.00
2 4,000
1.70
1.30 1.30 1.40 1.40 2,658
1.12 1.13
1 2,000

0 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20031 2004 2005 2006 2007

Higher earnings compared with 006 (+8.4%) due to new businesses,


organic growth and lower special charges
1
according to German Commercial Code

corporate.basf.com/share
40 economic performance BASF 008 BASF 008 economic performance 41

sales By segment 2007 sales By regiOn 2007 (by location of customer)

1 -- Chemicals: 16% (€9,358 million)


4
7 1 2 -- Plastics: 17% (€9,976 million) 1 -- Europe: 56%
3 (thereof Germany: 21%)
6
3 -- Performance
Products: 15% (€8,862 million) 2 -- North America: 21%
€57,951 2 €57,951
million million 3 -- Asia Pacific: 16%
4 -- Functional 1
5 Solutions: 16% (€9,491 million) 2
4 -- South America, Africa,
3
4 5 -- Agricultural Middle East: 7%
Solutions: 6% (€3,137 million)
6 -- Oil & Gas: 18% (€10,517 million)
7 -- Other: 12% (€6,610 million)
more details can be found from page 14 onward.

inCOme FrOm OperatiOns By segment 2007 inCOme FrOm OperatiOns By regiOn 2007

0% 20% 40%
1 -- Germany: 58%
5
Chemicals 26% (€1,903 million) 4
2 -- Europe
Plastics 16% (€1,172 million) (excl. Germany): 16%
3
Performance
Products 9% (€681 million) €7,316 Europe total: 74%
million 1
Functional 6% (€434 million) 3 -- North America: 11%
Solutions 2
Agricultural 7% (€516 million) 4 -- Asia Pacific: 11%
Solutions
Oil & Gas 42% (€3,031 million) 5 -- South America, Africa,
Middle East: 4%
Other –6% (– €421 million)

more details can be found from page 14 onward.

BasF sales By industry* (percentage of sales in 007) Capital eXpenditures By regiOn 2006 – 2007 (%)

2007 2006
ChemiCals > 15%
eurOpe 79.4% 46.6%
autOmOtive | COnstruCtiOn | utilities 10 – 15%
nOrth ameriCa 14.3% 41.4%
agriCulture |
plastiCs | Oil 5 – 10% asia paCiFiC 4.2% 7.0%
eleCtriCal/eleCtrOniCs | sOuth ameriCa, aFriCa,
Furniture | paper < 5% middle east 2.1% 5.0%
Other industries 10 – 15% 100% 100%
* Distribution by direct customers of BASF
4 service BASF 008 4

serviCe: COver:
mOre inFOrmatiOn FaCes OF BasF

You can find this and other publications from BASF As the world's leading chemical company, we have a world-
on the Internet www.basf.com wide presence. This is why Fact & Figures 2008 will be
published with four different cover pages, each one showing
a BASF employee from one of our four regions.
you can also order them:
• by telephone: +49 61 60-9187 shaping shaping shaping shaping
the Future the Future the Future the Future
• by fax: +49 61 60-016
• per e-mail: medien-service@basf.com
• on the internet: corporate.basf.com/mediaorders

general inquiries sustainability Center Facts and Figures


2008
Facts and Figures
2008
Facts and Figures
2008
Facts and Figures
2008

Phone: +49 61 60-0 Dr. Lothar Meinzer


Fax: +49 61 60-4 Phone: +49 61 60-41976
Fax: +49 61 60-987 employees (from left to right)

henry garibay ekktha Jawanpuria


Corporate media relations investor relations Product Management Pigments recruitment and
Michael Grabicki Magdalena Moll Florham Park, new Jersey Organisational Development
Phone: +49 61 60-9998 Phone: +49 61 60-480 united Sates Mumbai, India
Fax: +49 61 60-969 Fax: +49 61 60-00
Carolina taravay-diniz manfred appel
internet Global Controlling Foams Technical Marketing
www.basf.com São Paulo, Brazil Light Stabilizers for Plastics
(delegated to Ludwigshafen) Ludwigshafen, Germany
BasF se, 6706 Ludwigshafen, Germany

registered trademarks of BasF group: publisher:


ABATE, Ecoflex, Ecovio, Micronal, neopor, Paliocolor, Styropor, Suvinil, ultradur BASF SE
Communications BASF Group
trademarks of BasF group: 6706 Ludwigshafen, Germany
AgCelence, Heck, Senergy, Smart Dynamic Construction Phone: +49 61 60-947
E-mail: corporate.messages@basf.com
reg. trademark of the Conseil européen de l’industrie Chimique:
responsible Care April 008
044

We combine economic success with social


responsibility and environmental protection.
We make our contribution to finding the answers
to global challenges, such as climate protection,
energy efficiency, nutrition and mobility.

BasF se
ZOAC 0809 E

6706 Ludwigshafen
Germany
www.basf.com

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