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BASF Facts and Figures 2008.PDF.assetinline
BASF Facts and Figures 2008.PDF.assetinline
the Future
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
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
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
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
– 25%
• Status at year-end 007: Increase of 0% to € .90
– 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%
– 70%
executives (baseline 00: .%)
• Status at year-end 007: .6%
status at year-end 2007: – 50.0 %
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.
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.
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
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
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
andrea Baker -- senior production technician, Freeport, Texas. aboubacri Ba -- greenhouse technician, Ghent, Belgium.
16 BasF worldwide BASF 008 BASF 008 BasF worldwide 17
corporate.basf.com/regions
• 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
• 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
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. -
• 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
– 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
• 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.
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
corporate.basf.com/future/housing
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.
corporate.basf.com/future/nutrition
protection against cavities -- BASF is developing innovative products for oral hygiene.
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
corporate.basf.com/future/demography
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
glOBal standards PEr 10,000 SHIPMEnTS (rEDuCTIOn COMPArED WITH BASELInE 00: –0%)
• 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
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.
corporate.basf.com/employees
BasF emplOyees
(AS OF DECEMBEr 1, 007) emplOyees WOrldWide
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
corporate.basf.com/society
5
8 economic performance BASF 008 BASF 008 economic performance 9
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
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 €)
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
corporate.basf.com/share
40 economic performance BASF 008 BASF 008 economic performance 41
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)
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
BasF se
ZOAC 0809 E
6706 Ludwigshafen
Germany
www.basf.com