[PDF] Adding value through growth and innovation



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We add value as one company - BASF

BASF Capital Market Story March 2015 1 150 years 150 years We add value as one company Wayne T Smith Member of the Board of Executive Directors



Adding value through growth and innovation

Change in –9 6 –32 6 –60 4 –30 8 138 1 372 4 381 2 298 7 –18 3 –10 4 2 Milestones 4 Letter from the Chairman of the Board of Executive Directors 6 Board of Executive Directors



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Annual Report 2001

Adding value through

growth and innovation

Change in %

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2Milestones

4Letter from the Chairman of the

Board of Executive Directors

6Board of Executive Directors

8BASF Shares

12BASF"s Strategy:Growth and

Innovation

16Chemicals

22Plastics & Fibers

28Performance Products

34Agricultural Products & Nutrition

40Oil & Gas

44Research & Development

48Sustainable Development

54Corporate Governance

58Report of the Supervisory Board

60Finance

66Glossary

67Index

68Ten-Year Summary

Contents BASF Group

Sales by segment

Million €

Chemicals 4,494 13.8%

Plastics & Fibers 8,185 25.2%

Performance Products 8,154 24.1%

Agricultural Products & Nutrition5,826 17.9%

Oil & Gas 4,516 13.9%

Other 1,325 4.1%

Sales by region (location of customer)

Million €

Europe 17,984 55.3%

thereof Germany 7,212 22.2%

North America (NAFTA) 7,654 23.6%

South America 2,188 6.7%

Asia, Pacific Area, Africa 4,674 14.4%

BASF is a member of the World Business Council

for Sustainable Development

The Annual Report covers the economic aspects of

BASF Group"s sustainability reporting.

This report went to press on February and

was published on March

The Annual Report is supplemented by a Financial

Report containing the complete Consolidated

Financial Statements of BASF Group together with

the Management"s Discussion and Analysis and the

Report of Independent Auditors. We would be

pleased to send you a copy (see back cover).

Overview of key financial data

2001

32,500

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Chemicals - the heart of our Verbund

In the Chemicals segment, we primarily manufacture organic and inorganic basic chemicals and intermedi-

ates. In doing so, we make optimal use of the synergy potential of our Verbund. Our goal is to achieve cost

leadership. Integrated production sites, new processes and the advantages of modern large-scale plants are

our keys to success. We are optimizing existing Verbund sites and constructing new ones in the major growth markets. Plastics & Fibers - cost leadership and innovative specialties

BASF is one of the leading manufacturers of plastics and fibers. We strive to achieve global cost leader-

ship with our standard plastics. With our specialty plastics, we focus on the huge range of uses for these

materials of the future. Together with customers, we develop new applications and open up new markets.

Performance Products - intensive cooperation with customers In the Performance Products segment, we produce and market high-value chemicals and specialties. We

concentrate our activities on innovative business areas and products toward the end of our value-adding

chains. Our success is based on developing new products and applications in close cooperation with our

customers and on our ability to ensure just-in-time delivery through a network of regional sites. Agricultural Products & Nutrition - active portfolio management strengthens our business

We have created a high-yielding, cyclically resilient product portfolio in our Agricultural Products & Nutri-

tion segment through active portfolio management. Our position is strengthened by new active ingredi-

ents and our presence in the major agricultural markets. We are extending our activities in plant biotech-

nology. We supply our customers with a variety of high-value fine chemicals for the food, pharmaceuti-

cals, animal feed and cosmetics industries.

Oil & Gas - expertise and regional focus

BASF is active in the oil and gas business through its subsidiary Wintershall. In exploration and produc-

tion, we benefit from our expertise and focus on areas that are rich in oil and gas. In natural gas trading,

we are making use of the growth opportunities created as a result of liberalization of European gas

markets. This segment also serves as a counterbalance to the effect of high raw material costs on our

chemicals operations.

Inorganics 677 15.1%

Petrochemicals 2,079 46.3%

Intermediates 1,738 38.6%

Styrenics 3,267 39.9%

Performance Polymers 2,241 27.4%

Polyurethanes 2,677 32.7%

Performance Chemicals 3,345 41.0%

Coatings 2,287 28.1%

Functional Polymers 2,522 30.9%

Agricultural Products 3,478 59.7%

Fine Chemicals 1,984 34.1%

Pharmaceuticals 364 6.2%

(until March 2001)

Oil & Gas 4,516 100.0%

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Key data

Million €

Sales by division

Million €

Segments

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4BASFk...kAnnualkReportk2001kk

MilestonesO2001

JanuaryBASF starts up a new

plant for superabsorbents in

Rayong, Thailand. The plant

has an annual capacity of

20,000 metric tons and will be

used to supply Asian markets from regional production.

The Oil & Gas segment com-

mences production in a new natural gas field in the Dutch

North Sea, increasing its gas

production in this region by

59 percent.

VebruaryOOBASF-YPC Co., a 50-

50 joint venture between BASF

and China Petroleum & Chemi- cal Corp. (sinopec), awards a contract to the U.S. Shaw

Group Inc. for the construction

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