BASF in Korea · BASF in Korea Report 2013 The cover photo shows a BASF employee wearing glasses with the frame made of BASF Ultrason ®.This high performance thermoplastics with

BASF in Korea Report 2013

The cover photo shows a BASF employee wearing glasses with the frame made of BASF Ultrason®. This high performance thermoplastics with a new production site in Yeosu provides higher stiffness and more flexibility, better transparency and coloring freedom.

ContaCtsFurther inFormation

Corporate AffairsEmily Park, Phone: +82 2 3707 7506, Fax: +82 2 3707 7889Email: [email protected]

SustainabilityInNyeong Lee, Phone: +82 2 3707 3206, Fax: +82 2 3707 7870, Email: [email protected]

This publication can be found on the internet

at www.basf.co.kr

ChemicalsThe Chemicals segment comprises our business with basic chemicals and intermediates. Its portfolio ranges from solvents, plasticizers and highvolume monomers to glues and electronic chemicals as well as raw materials for detergents, plastics, textile fibers, paints and coatings, plant protection and pharmaceuticals. In addition to supplying customers in the chemical industry and numerous other sectors, we also ensure that other BASF segments are supplied with chemicals for producing downstream products.

Performance ProductsOur Performance Products lend stability and color to many everyday items and help to improve their application properties. Our product portfolio also includes vitamins and other food additives as well as ingredients for pharmaceuticals and for hygiene, home and personal care items. Other products from this segment improve processes in the paper indus try, oil and gas production, mining and water treatment. They can also enhance the effi ciency of fuels and lubricants, the effectiveness of adhesives and coatings, and the stability of plastics.

Functional Materials & SolutionsIn the Functional Materials & Solutions segment, we bundle system solutions, services and innovative products for specific sectors and customers, in particular for the automotive, electrical, chemical and construction industries as well as for household applications and for sports and leisure. Our portfolio comprises catalysts, battery materials, engineering plastics, polyurethane systems, automotive and industrial coatings and concrete admixtures as well as construction systems such as tile adhesives and decorative paints.

Agricultural SolutionsOur crop protection products guard against fungal diseases, insects and weeds, increase the quality of agricultural products and secure crop yields. Our research in plant biotechnology concentrates on plants for greater efficiency in agriculture, better nutrition, and use as renewable raw materials. Research and development expenses, sales, earnings and all other data of BASF Plant Science are not included in the Agricultural Solutions segment; they are reported in Other.

Oil & GasWe focus our exploration and production on oil and gasrich regions in Europe, North Africa, South America, Russia and the Middle East.Together with our Russian partner Gazprom, we are active in the transport, storage and trading of natural gas in Europe.

Key data Chemicals (million €)

2013 2012 Change in %

Sales 16,994 17,887 (5.0)

Thereof Petrochemicals 7,785 8,260 (5.8)

Monomers 6,385 6,772 (5.7)

Intermediates 2,824 2,855 (1.1)

EBITDA 2,956 3,021 (2.2)

Income from operations before special items 2,182 2,171 0.5

Income from operations (EBIT) 2,086 2,173 (4.0)

Key data Performance Products (million €)

2013 2012 Change in %

Sales 15,534 15,713 (1.1)

Thereof Dispersions & Pigments 3,557 3,668 (3.0)

Care Chemicals 4,871 4,898 (0.6)

Nutrition & Health 2,088 1,959 6.6

Paper Chemicals 1,442 1,564 (7.8)

Performance Chemicals 3,576 3,624 (1.3)

EBITDA 1,987 2,090 (4.9)

Income from operations before special items 1,365 1,421 (3.9)

Income from operations (EBIT) 1,100 1,276 (13.8)

Key data Functional Materials & Solutions (million €)

2013 2012 Change in %

Sales 17,252 17,049 1.2

Thereof Catalysts 5,708 5,568 2.5

Construction Chemicals 2,120 2,315 (8.4)

Coatings 2,927 2,961 (1.1)

Performance Materials 6,497 6,205 4.7

EBITDA 1,498 1,363 9.9

Income from operations before special items 1,070 932 14.8

Income from operations (EBIT) 1,027 806 27.4

Key data Agricultural Solutions (million €)

2013 2012 Change in %

Sales 5,227 4,679 11.7

EBITDA 1,375 1,182 16.3


Income from operations (EBIT) 1,208 1,026 17.7

Key data Oil & Gas (million €)

2013 2012 Change in %

Sales 14,776 12,740 16.0

Thereof Exploration & Production 2,929 2,584 13.4

Natural Gas Trading 11,847 10,156 16.7

EBITDA 3,144 2,445 28.6


Income from operations (EBIT) 2,516 1,676 50.1

Net income 1,780 1,201 48.2BASF supports the chemical industry’s global Responsible Care initiative.

1.

2.

3.

4.

Creation of value added (Million €, previous year’s figures in parentheses)

Business performance

75,868 (74,067)

1. Value added

17,028 (15,994)

2. Amortization and depreciation

3,154 (3,267)

3. Service purchased, energy costs and other expenses

12,562 (12,856)

4. Cost of raw materials and merchandise

43,124 (41,950)

Use of value added(Previous year’s figures in parentheses)

Employees

54.6% (56.0%)

Government

11.0% (7.8%)

Creditors

4.0% (4.5%)

Minority interests

1.9% (1.6%)

Shareholders(Dividend and retention)

28.5% (30.1%)

Value added 20132

Innovation

2013 2012 Change in %

Research and development expenses million € 1,835 1,732 5.9

Number of employees in research and development at yearend 10,631 10,456 1.7

Economic data

2013 2012 Change in %

Sales million € 73,973 72,129 2.6

Income from operations before depreciation and amortization (EBITDA) million € 10,427 10,009 4.2

Income from operations (EBIT) before special items million € 7,190 6,647 8.2

Income from operations (EBIT) million € 7,273 6,742 7.9

Income from operations (EBIT) after cost of capital million € 1,872 1,164 60.8

Income before taxes and minority interests million € 6,713 5,977 12.3

Net income million € 4,842 4,819 0.5

Earnings per share € 5.27 5.25 0.4

Adjusted earnings per share € 5.37 5.64 (4.8)

Dividend per share € 2.70 2.60 3.8

Cash provided by operating activities million € 7,870 6,602 19.2

Additions to noncurrent assets1 million € 7,513 5,263 42.8

Depreciation and amortization1 million € 3,154 3,267 (3.5)

Return on assets % 11.6 11.0 –

Return on equity after tax % 19.4 19.9 –

1 Including acquisitions

2 Value added results from the company’s performance minus goods and services purchased, depreciation and amortization. It shows the BASF Group‘s contribution to both private and public income as well as the distribution of this contribution among all stakeholders.

Employees and society

2013 2012 Change in %

Employees at yearend 112,206 110,782 1.3

Apprentices at yearend 3,060 2,809 8.9

Personnel expenses million € 9,285 8,963 3.6

Annual bonus % of Group companies 98.9 97.9 1.0

Donations and sponsorship million € 49.2 49.0 0.4

Supply chain management and Responsible Care

2013 2012 Change in %

Number of onsite sustainability audits of raw material suppliers3 155 210 (26.0)

Number of environmental and safety audits 132 112 17.9

Number of occupational medicine and health protection audits 44 42 4.8

3 In 2013, we updated our approach for evaluating suppliers. In addition to onsite audits, we initiated 550 sustainability evaluations online through external service providers.

Safety and health

2013 2012 Change in %

Transportation accidents per 10,000 shipments 0.22 0.24 (8)

Product spillages during transportation per 10,000 shipments 0.23 0.25 (8)

Lost time injuries per million working hours 1.4 1.7 (18)

Health Performance Index 0.89 0.89 0.4

Environment

2013 2012 Change in %

Primary energy usage4 million MWh 59.2 57.4 3.1

Energy efficiency in production processes metric tons of sales product/MWh 0.592 0.602 (1.7)

Total water withdrawal million cubic meters 1,781 1,999 (10.9)

Withdrawal of drinking water million cubic meters 22.6 23.2 (2.5)

Emissions of organic substances to water5 thousand metric tons 19.7 21.2 (7.5)

Emissions of nitrogen to water5 thousand metric tons 2.9 2.8 4.7

Emissions of heavy metals to water5 metric tons 21.9 26.2 (16.7)

Emissions of greenhouse gases million metric tons of CO2 equivalents 23.0 22.8 0.8

Emissions to air (air pollutants)5 thousand metric tons 32.4 30.6 5.9

Waste million metric tons 2.5 2.2 11.8

Operating costs for environmental protection facilities million € 893 901 (0.9)

Investments in environmental protection million € 325 268 21.3

4 Primary energy used in BASF’s plants as well as in the plants of our energy suppliers to cover energy demand for production processes5 Excluding emissions from oil and gas production

33The BASF GroupBASF in Korea Report 2013

Million € 2004 2005 2006 2007 2008 2009 2010 2011 20121 2013

Sales and earnings

Sales 37,537 42,745 42,745 52,610 57,951 62,304 50,693 63,873 72,129 73,973

Income from operations before depreciation and amortization (EBITDA)

7,685

8,233

9,723

10,225

9,562 7,388

11,131

11,993

10,009 10,427

Income from operations (EBIT) 5,193 5,830 6,750 7,316 6,463 3,677 7,761 8,586 6,742 7,273

Income before taxes 4,347 5,926 6,527 6,935 5,976 3,079 7,373 8,970 5,977 6,713

Income before minority interests 2,133 3,168 3,466 4,325 3,305 1,655 5,074 6,603 5,067 5,173

Net income 2,004 3,007 3,215 4,065 2,912 1,410 4,557 6,188 4,819 4,842

Capital expenditures, depreciation and amortization

Additions to property, plant and equipmentand intangible assets

2,163

2,523 10,039

4,425

3,634 5,972 5,304 3,646

5,263 7,513

Thereof property, plant and equipment 2,022 2,188 4,068 2,564 2,809 4,126 3,294 3,199 4,084 6,220

Depreciation and amortization of property,plant and equipment and intangible assets

2,492

2,403

2,973

2,909

3,099 3,711

3,370

3,407 3,267 3,154


Number of employees

At yearend 81,955 80,945 95,247 95,175 96,924 104,779 109,140 111,141 110,782 112,206

Annual average 85,022 80,992 88,160 94,893 95,885 103,612 104,043 110,403 109,969 111,844

Personnel expenses 5,615 5,574 6,210 6,648 6,364 7,107 8,228 8,576 8,963 9,285

Research and development expenses 1,173 1,064 1,277 1,380 1,355 1,398 1,492 1,605 1,732 1,835

Key data

Earnings per share2,3 € 1.83 2.87 3.19 4.16 3.13 1.54 4.96 6.74 5.25 5.27

Cash provided by operating activities4 4,634 5,250 5 5,940 5,807 5,023 5,693 6,460 7,105 6,602 7,870

EBITDA margin % 20.5 19.3 18.5 17.6 15.3 14.6 17.4 16.3 13.9 14.1

Return on assets % 13.2 17.7 17.5 16.4 13.5 7.5 14.7 16.1 11.0 11.6

Return on equity after tax % 12.9 18.6 19.2 22.4 17.0 8.9 24.6 27.5 19.9 19.4

Appropriation of profits

Net income of BASF SE6 1,363 1,273 1,951 2,267 2,982 2,176 3,737 3,506 2,880 2,826

Dividends 904 1,015 1,484 1,831 1,791 1,561 2,021 2,296 2,388 2,480

Dividend per share2 € 0.85 1.00 1.50 1.95 1.95 1.70 2.20 2.50 2.60 2.70

Number of shares as of December 312,7 million 1,080.9 1,028.8 999.4 956.4 918.5 918.5 918.5 918.5 918.5 918.5

1 We have applied International Financial Reporting Standards 10 and 11 as well as International Accounting Standard 19 (revised) since January 1, 2013. Figures for 2012 have been restated; no restatement has been made for 2011 and earlier.

2 We conducted a twoforone stock split in the second quarter of 2008. The previous year’s figures for earnings per share, dividend per share and number of shares have been adjusted accordingly.

3 Adjusted for special items and impairment of intangible assets, earnings per share were €5.37 in 2013 and €5.64 in 2012.4 Includes the change in reporting from 2009 onward of the effects of regular extensions of U.S. dollar hedging transactions 5 Before external financing of pension obligations6 Calculated in accordance with German GAAP7 After deduction of repurchased shares earmarked for cancellation

Ten-year summaryThe BASF Group 2013 at a glance

1

About this report

The “BASF in Korea - Report” is published annually as a concise document about the performance of our activities across the three dimensions of sustainability -economy, environment, and society - in Korea. The reporting period for this publication is the financial year 2013. This report also carries an overview of BASF Group along with its financial performance, prepared in accordance with the requirements of the German Commercial Code and the International Financial Reporting Standards (IFRS). Since January 1, 2013, BASF has applied International Financial Reporting Standards 10 and 11 and International Accounting Standard (IAS) 19 (revised). We have adjusted the figures for the 2012 financial year accordingly in order to ensure comparabil-ity. The figures for the 2011 financial year and earlier were not restated according to the new accounting and reporting stan-dards IFRS 10 and 11. Environmental data from joint venture companies in Korea are reported pro rata based on our stake. The employee numbers refer to employees within the BASF Group scope of consolidation as of December 31, 2013.

BASF in KoreaReport 2013

Contents

About this report 1

Message from the Managing Director 2

The BASF Group 4

BASF in Asia Pacific 10

BASF in Korea 12

Strategic areas 16

“We create chemistry” world tour in Korea 20

Environment, health and safety 22

Employees 27

Society 29



2 32

Management of BASF in Korea

Wan-soo Byun, Head of Human Resources Jae-young Lim, Head of Specialties BusinessWoo-sung Shin, Managing Director Dong-moon Kim, Head of Site Management Jacob Nilsson, Head of Corporate Services Man-woo Lee, Head of Chemicals Business (from left)

Message from the Managing Director

In 2013, the market environment remained challenging, not only in Korea but globally. BASF in Korea also experienced a difficult first half, but thanks to hard efforts of our employees, we were able to maintain our solid performance again in 2013. I would like to offer my sincere and heartfelt thanks to everyone for their contributions to this great accomplishment.

We had a very dynamic year in 2013. We established the regional headquarters of BASF’s electronic materials business in Seoul, and announced that we will build a new regional research and development (R&D) center for electronic materials in Suwon, the first BASF R&D center in Korea. In addition, we are in the process of building a new engineering plastics compounding plant in Yesan, which will more than double the previous production capacity, supporting growing demands not only in Korea but throughout Asia Pacific. Our high performance thermoplastic Ultrason® plant in Yeosu, the first plant of its kind outside of Germany, is now success-fully built and ready to support our customers in Asia Pacific.

With these ongoing investments, we implement BASF’s long term strategy, expressed in our corporate purpose: “We create chemistry for a sustainable future.” Not only do we place importance on economic success, but also on social responsibility and environmental protection. Innovation is the key to making it possible, and this comes from close collaboration with you, our customers, stakehold-ers and our employees. With our exceptional team, I assure that we will further develop our growth momentum with our customers in Korea.

2014 marks the 60th anniversary for BASF in Korea. BASF started its activities in Korea in 1954, and since then has constantly grown together with the Korean economy even in difficult times. Over the years, BASF has step by step strengthened its presence in Ko-rea. I would like to express my deepest gratitude to all of our customers and stakeholders in Korea and overseas for their support. At BASF in Korea we would like to continue our success story with you as we have done in the past 60 years, and seize more new opportunities in 2014 and beyond.

Thank you very much for your support and trust !

Woo-sung ShinManaging Director, BASF in Korea


Message from the Managing Director Message from the Managing Director



The heart of the BASF Group is BASF SE headquartered in Ludwigshafen, Germany. With its over 230 production plants, several hundred laboratories, technical centers, workshops and offices, it is the largest integrated chemical complex In the world.

4 5The BASF GroupThe BASF Group

The BASF Group

We are the world’s leading chemical company - The Chemical Company. In the BASF Group, around 112,000

employees work on contributing to the success of our customers in nearly all sectors and almost every coun-try in the world. Our broad portfolio is arranged into fivesegments: Chemicals, Performance Products, Func-tional Materials & Solutions, Agricultural Solutions and Oil & Gas.

Organization of the BASF GroupArranged into five segments, 14 divisions bear operational re-sponsibility and manage our 66 global and regional business units. The divisions develop strategies for our 86 strategic busi-ness units and are organized according to sectors or products. The regional divisions contribute to the local development of our business and help to exploit market potential. They are also responsible for optimizing the infrastructure for our busi-ness. For financial reporting purposes, our divisions are grouped into the following four regions: Europe; North America; Asia Pa-cific; and South America, Africa, Middle East. Three central divisions, six corporate departments and eleven competence centers provide services for the BASF Group in areas such as finance, investor relations, communica-tions, human resources, research, engineering, site manage-ment, and environment, health and safety. In line with our “We create chemistry” strategy, we opti-mized our segment structure as of January 1, 2013, in order to better serve customer industries and further increase our oper-ational and technological excellence. By combining businesses that share the same business model, we can sharpen our fo-cus on the respective success factors.

Markets and sitesBASF has companies in more than eighty countries and sup-plies products to a large number of business partners in nearly every part of the world. In 2013, we achieved 56% of our sales with customers in Europe, of which 35 percentage points were in the Oil & Gas segment. North America accounted for 19% of sales; Asia Pacific, 17%; and 8% of sales were generated in South America, Africa, Middle East. We operate six Verbund sites as well as 376 additional pro-duction sites worldwide. Our Verbund site in Ludwigshafen is the largest integrated chemical complex in the world. This was where the Verbund concept was developed and continuously optimized before it was applied to other sites around the world.

VerbundThe Verbund system is one of BASF’s great strengths. Here, we add value as one company by using our resources efficiently. The Production Verbund, for example, intelligently links produc-tion units and energy demand so that heat released by produc-tion processes can be used as energy in other plants. Further-more, by-products of one plant can serve as feedstock elsewhere. In this system, chemical processes run with lower energy use and higher product yield. This not only saves us raw materials and energy, it also minimizes emissions, lowers logis-tics costs and makes use of synergies. Another important part of the Verbund concept is the Tech-nology and Know-How Verbund. Expert knowledge is pooled in our central research areas.

For more on the Verbund concept, see basf.com/verbund_e

Corporate legal structureAs the publicly traded parent company, BASF SE takes a cen-tral position: Directly or indirectly, it holds the shares in the com-panies belonging to the BASF Group, and is also the largest op-erating company. The majority of Group companies cover a broad spectrum of our business. Some concentrate on specific business areas.

The BASF Group

− Six Verbund sites and 376 other production sites worldwide; around 112,000 employees − Largest BASF Verbund site located in Ludwigshafen, where Verbund concept was created − Verbund: Intelligent plant networking in the Production Verbund; Technology and Know-how Verbund

The picture shows one of various tanks that supply the production facili-ties in Ludwigshafen with feedstocks.



76

Goals

Growth and profitability1

Annual goals 2015 Goals 2020 Goals Status at year-end 2013

Sales Approx. €80 billion Approx. €110 billion €74.0 billion

Premium on cost of capital At least €2.0 billion on average each year €1.9 billion

EBITDA Approx. €14 billion Approx. €22 billion €10.4 billion

Earnings per share Around €7.50 €5.27

Employees

Long-term goals Status at year-end 2013

International proportion of senior executives Increase in the proportion of non-German senior executives(baseline 2003: 30%)

35.0%

Senior executives with international experience Proportion of senior executives with international experience over 80% 81.6%

Women in executive positions Increase in the proportion of female executives worldwide 18.5%

Employee development Establishment of employee development as a responsibility shared byemployees and leaders based on relevant processes and tools

The project has beenimplemented for around

40,000 employeesworldwide

Environment, safety, security and health

2020 Goals Status at year-end 2013

Energy and climate protection

Improvement of energy efficiency in production processes2 (baseline 2002) +35% +19.8%

Greenhouse gas emissions per metric ton of sales product2 (baseline 2002) –40% -34.0%

Stop flaring of associated gas released during Wintershall’s production of crude oil(2012 goal) 100% 100%

Greenhouse gas emissions per amount and distance of transported gas (baseline 2010) –10% –9.0%

Water

Emission of organic substances to water2 (baseline 2002) –80% -78.5%

Emission of nitrogen to water2 (baseline 2002) –80% –86.8%

Emission of heavy metals to water2 (baseline 2002) –60% –64.2%

Withdrawal of drinking water for production (baseline 2010) –50% –25.3%

Introduction of sustainable water management at production sitesin water stress areas2 (baseline 2010) 100% 11.1%

Air

Emission of air pollutants2 (baseline 2002) –70% –62.2%

Transportation

Transportation accidents per 10,000 shipments (baseline 2003) –70% –61%

Production

Lost time injuries per million working hours (baseline 2002) –80% –58%

Health Performance Index (annual goal) >0.9 0.89

Products

Risk assessment for all products sold worldwide by BASFin quantities of more than one metric ton per year >99% 56%

2 Excluding oil and gas production

Corporate strategy

With the “We create chemistry” strategy, BASF has set itself ambitious goals in order to strengthen its position as the world’s leading chemical company. We want to contribute to a sustainable future, and have embedded this into our corporate purpose: “We create chemistryfor a sustainable future.”

In 2050, around nine billion people will live on this planet. While the world population and its demands will keep growing, the planet’s resources are finite. On the one hand, population grow this associated with huge global challenges; and yet we also see many opportunities, especially for the chemical industry.

Our purposeWe create chemistry for a sustainable future

Through research and innovation, we support our customers in nearly every industry in meeting the current and future needs of society. Our products and solutions contribute to conserving resources, ensuring good nutrition and improving quality of life. Innovations based on chemistry will play a key role in three areas in particular:

− Resources, environment and climate− Food and nutrition− Quality of life

Our leading position as an integrated global chemical company opens up opportunities for us in all three of these areas. In pur-suing them, we act in accordance with four strategic principles.

Our strategic principlesWe add value as one companyOur Verbund concept is unique in the industry. We plan to strengthen this sophisticated and profitable

system even further. It extends from the Production Verbund and Technology Verbund to the Know-How Verbund, and pro-vides access to all relevant customer industries worldwide. In this way, we combine our strengths and add value as one company.

We innovate to make our customersmore successfulWe want to align our business even more closely with

our customers’ needs and contribute to their success with in-novative and sustainable solutions. Through close partnerships with customers and research institutes, we link expertise in chemistry, bio-logy, physics, materials sciences and engineer-ing to jointly develop customized products as well as functional materials and system solutions.

We drive sustainable solutionsIn the future, sustainability will serve more than ever before as a starting point for new business opportu-

nities. We therefore value sustainability and innovation as im-portant drivers for profitable growth.

We form the best teamCommitted and qualified employees around the world are the key to making our contribution to a sustain-

able future. That is why we will continue to pursue our goal of building the best team. We offer excellent working conditions and an open leadership culture that fosters mutual trust and re-spect and encourages high motivation.

Our valuesHow we act is critical for the successful implementation of our strategy: This is what our values represent. They guide how we interact with society, our partners and with each other.

CreativeIn order to find innovative and sustainable solutions, we have the courage to pursue bold ideas. We join our areas of exper-tise from many different fields and build partnerships to develop creative, value-adding solutions. We constantly improve our products, services and solutions.

Open We value diversity - in people, opinions and experience. That is why we foster dialog based on honesty, respect and mutual trust. We explore our talents and capabilities.

ResponsibleWe act responsibly as an integral part of society. In doing so, we strictly adhere to our compliance standards. And in every-thing we do, we never compromise on safety.

EntrepreneurialAll employees contribute to BASF’s success - as individuals and as a team. We turn market needs into customer solutions. We succeed in this because we take ownership and embrace ac-countability for our work.

The BASF GroupThe BASF Group

1 For more on the application of International Financial Reporting Standards 10 and 11, see basf.com/goals



98

FreeportGeismar

Florham Park

São Paulo

Antwerp

Singapore

Hong Kong

Ludwigshafen

Nanjing

Kuantan

Europe

In 2013, companies headquartered in Europe posted a sales increase of 5% to €43,335 million. At €4,422 million, income from operations before special items surpassed the level of the previous year by 2%.

Asia Pacific

Companies headquartered in Asia Pacific were able to increase sales by 5% in local-currency terms in 2013; in euro terms, sales matched the prior-year level, reaching €11,679 million. Income from operations before special items declined by 5% to €842 million.

BASF in the RegionsSales 2013: €73,973 million; EBIT before special items 2013: €7,190 million

North America

At €14,573 million, sales for companies headquartered in North America were up year-on-year by 1%. In local- currency terms, sales in the region grew by 4%. Income from operations before special items increased by 49% to €1,539 million compared with the previous year.

South America, Africa, Middle East

At €4,386 million, sales for companies headquartered in South America, Africa, Middle East were 4% below the level of 2012. In local-currency terms, sales rose by 7%. Income from operations before special items in the region improved by 5% to €387 million.

1 In 2013, by location of company2 At year-end 2013

North AmericaSales1 (in million €)

14,573

EBIT before special items1 (in million €)

1,539

Employees2

16,996

EuropeSales1 (in million €)

43,335


4,422

Employees2

70,977

Asia PacificSales1 (in million €)

11,679


842

Employees2

16,708

South America, Africa, Middle EastSales1 (in million €)

4,386


387

Employees2

7,525

The BASF GroupThe BASF Group

Regional centers Selected production sites Verbund sites Selected research sites



10 11

BASF in Asia Pacific At a glance

BASF in Asia Pacific: at a glance

− Customers in 17 countries − 16,708 employees − Sales to customers in the region of around €12.5 billion − EBIT before special items of around €842 million − 700 R&D employees − Around 100 production sites − More than 130 sales offices

BASF strategy in Asia Pacific: grow smartlyIn 2013, BASF announced the implementation of its global “We create chemistry” strategy in Asia Pacific with a set of ambitious targets and a focus on sustainability. To achieve sales of €25 billion to customers in the region by 2020, BASF’s Asia Pacific strategy “grow smartly” outlines investments of €10 billion, and annual savings of €1 billion. Around 25% of BASF’s global R&D team will be located in Asia Pacific by 2020, to develop innovative solutions that address the region’s challenges of resource efficiency, food and nutrition, and quality of life. By 2020, BASF plans to employ a total of around 3,500 R&D personnel in the region.

Investment in local productionBy 2020, BASF aims for local production of approximately 75% of the products it sells in the Asia Pacific region, in order to intensify its collaboration with and strengthen its supply position to customers in Asia Pacific. At the same time, local production improves resource efficiency by reducing the transportation needed for imports and exports, and by enhancing energy and raw material efficiency through highly-integrated production systems close to customers. In 2013, BASF started production at several new sites, including the inauguration of a wholly-owned tert-Butylamine plant in Nanjing, China, with a capacity of 10,000 metric tons per year, as well as starting up production of Hydraulan® brake fluid at its site in Shanghai, China. BASF also achieved several investment milestones in 2013. In Maoming, China, BASF and Sinopec took the next steps towards the establishment of a joint venture world-scale isononanol (INA) plant. In Chennai, India, BASF is expanding its production of mobile emissions reduction catalysts with new production lines and manufacturing capabilities. In Shanghai, China, BASF broke ground on an Ultramid® polymerization plant with a capacity of 100,000 metric tons per year, and announced plans to invest €90 million to set up a world-scale production plant to produce high performance resins and electrocoat for the automotive industry.

Operational excellenceIn order to achieve our ambitious goals, we need to continuously improve our operational efficiency and our organizational effectiveness. BASF will implement a range of efficiency measures that will save approximately €1 billion annually by 2020. Excellence in functional units, marketing and sales, organization structures, investment processes and operations are the focus areas addressed to establish a competitive advantage for BASF in the region.

Talent developmentOur employees are key to our long-term success in Asia Pacific. We focus on attracting and developing the most qualified talents. In 2013, BASF employed 16,708 people in the Asia Pacific region (2012: 16,406).

InnovationBASF is continuously expanding its R&D footprint in the region. We plan to employ a total of around 3,500 R&D personnel in the region by 2020. In 2013, BASF announced its intention to set up its new Electronic Materials Research and Development Center Asia Pacific in Seoul, Korea. The facility will serve as an integrated hub for electronic materials research in the region. We also inaugurated an R&D laboratory and application technology center for Battery Materials in Amagasaki, Japan.

Business performance In 2013, BASF achieved sales of €12.5 to customers located in Asia Pacific (2012: €12.5 billion). EBIT before special items earned by companies in the region was €842 million (2012: €888 million). Collaborative projects help BASF “create chemistry” with customers and local industries throughout the region. For example, BASF is working with the National Academy of Construction in India to provide vocational training for builders to improve the sustainability, durability, and performance of buildings. In the automotive industry, BASF and Somic Ishikawa jointly developed a plastic seat damper that helps carmakers improve comfort and decrease production costs. Working together with the entire textile value chain, BASF in 2013 adopted the bluesign® system, an internationally-recognized system for safety and environmental protection in textile chemicals. Through cooperation with partners in Japan, BASF’s gas treatment technology is now supporting Japan’s first large-scale carbon capture and storage demonstration project.

Portfolio developmentBASF continues to improve its portfolio to enhance the resiliency towards market fluctuation. The goal is to generate more than €2 billion euros in regional sales by location of customer by 2020 through new business and acquisitions.

The picture shows three employees working at the water treatment and paper chemicals plant in Nanjing, China.

Dr. Martin Brudermüller, Vice Chairman of the Board of Executive Directors, BASF SE, responsible for Asia Pacific

Dr. Martin Brudermüller

What is BASF’s biggest challenge in Asia Pacific? We see a rapid rise in the innovativeness and competitiveness of Asian companies in the marketplace. This is why we have to grow smartly by delivering leading-edge solutions in the most efficient way. Societies are also becoming more demanding, when it comes to companies’ contribution to this development. We reflect this with our corporate purpose: “We create chemistry for a sustainable future.”

How will BASF tackle the sustainability needs in the region?Our strategy balances the three dimensions of sustainability: economy, society and environment. Resource scarcity drives the need for more innovative and sustainable solutions. To deliver those, we can build on our strong local presence, our portfolio and our innovation capabilities. Cross-business growth initiatives, innovations, and close partnerships will contribute to the solutions we offer to customers to help tackle these challenges.

Number of employees (as of December 31)

2013 16,708

2012 16,406

BASF EBIT before special items in Asia Pacific (million €)(by location of company)

2013 842

2012 888

BASF sales in Asia Pacific (billion €)(by location of customer)

2013 12.5

2012 12.5

BASF in Asia PacificBASF in Asia Pacific



12 13BASF in KoreaBASF in Korea

Vitamin B2 production marks 10th year in Korea

At our Gunsan site, we celebrated the 10th anniversary of Vitamin B2 production on December 9, 2013. Since the relocation from Germany to Korea in 2003, the Gunsan site has continued to grow and strengthen competitiveness through cost reduction and extension in production lines.

The foundation

1865 Badische Anilin- und Soda-Fabrik Aktiengesellschaft (BASF AG) founded in Ludwigshafen, Germany

Supporting national reconstruction

1954 Established FOHAG (Far East Trading Company) as a first step into Korean market

Local production

1980 Established Hyosung BASF Co., Ltd.

1982 Established BASF Korea Ltd.

1988 Established Hanyang BASF Urethane Co., Ltd.

Expansion

1997 Acquired full interest in Hanwha BASF Urethane Co., Ltd.; renamed Korea BASF Urethane Co., Ltd.

1998 Acquired full interest in Hyosung BASF Co., Ltd.; renamed Korea BASF Styrenics Co., Ltd. Acquired lysine business from Daesang Co., Ltd. Acquired polyol business from Dongsung Chemical Co., Ltd. Consolidated BASF Urethane Co. Ltd., BASF Styrenics Korea Co. Ltd. and BASF Korea Ltd.; established BASF Company Ltd.

Leading the industry

2000 Expanded production capacity of Poly THF Completed BDO/THF (Butanediol/Tetrahydrofurane) plant Acquired interests of Hanwha Chemical Corp.

2001 Expanded production capacities of PS (polystyrene) ABS (Acrylonitrile Butadiene Styrene), polyol,

MDI (methylene diphenyl diisocyanate) Acquired styrene monomer plant from SK Evertec Corp.

2002 Expanded production capacity of Poly THF Completed CCD (Carbonyl Chloride Derivatives) plant

2003 Completed TDI (Toluene Diisocyanate) plant Completed Vitamin B2 plant Acquired engineering plastics compounding plant from Honeywell

2004 Expanded production capabilities of polyol and MDI

2005 Expanded production capacity of MDI and engineering plastics compounding

2006 Acquired Johnson Polymer Seoul branch Acquired Engelhard Asia Pacific Korea Acquired Degussa construction chemical business

2007 Closed lysine business

2009 Completed expansion of boiler capacity for steam supply Closed BDO/THF production

2010 Acquired Ciba Specialty Chemicals Inc. and Daihan Swiss Chemical

2011 Acquired Cognis Korea Expanded production capacity of engineering plastics compounding Styrenics business carved out to Styrolution Korea

2012 Expanded production capabilities of MDI

2013 Established regional headquarters for electronic materials business in Seoul

BASF site in Gunsan Chemical lab technicians inspect the surface of a silicon wafer.

Korea: a hub for the electronic and electricalindustry

BASF will strengthen its electronic and electrical business in the Asia Pacific region with Korea at its core. BASF is a leading chemical supplier for the electronic and electrical industry in Asia Pacific and Europe, with strong expertise in delivering process chemicals and solutions for the semi-conductor industry.

SitesBASF in KoreaHistory

BASF offers a broad portfolio in Korea under two busi-ness units - chemicals and specialties - and operates six world-scale production sites in Yeosu, Ulsan, Gunsan and Ansan. BASF also has five application centers in Dae-jeon, Ansan, Shiheung and Suwon. Since 2012, BASF’s business initiatives in Mongolia are also managed from Korea.

ChemicalsBASF’s chemicals business unit operates a polytetrahydrofuran (PolyTHF) plant in Ulsan, which was the first local plant built as a direct investment by BASF. PolyTHF is mainly used for the pro-duction of elastic fabrics like swimsuits, hosiery and undergar-ments. A production plant of carbonyl chloride derivatives (CCD), an ingredient in a polymerization initiator for organic peroxides and a main ingredient for amoxicillin (semi-synthetic penicillin), was completed and started operation in Yeosu in 2002. In addition to the vitamin B2 production plant in Gunsan, produc-ing vitamin B2 for animal feed and human nutrition, the business unit also operates production facilities in Ulsan and Yeosu to produce methylene diphenyl diisocyanate (MDI), toluene di-iso-cyanate (TDI), polyol and aniline which are used as basic mate-rials for polyurethanes. The chemicals business unit also im-ports raw and intermediate materials for chemical production and provides products and solutions to the agriculture, health and nutrition, electronic materials, home and personal care in-dustries.

SpecialtiesOur specialty business unit in Korea operates an expandable polystyrene (EPS) production site in Ulsan. BASF also produces engineering plastics at a compounding plant in Ansan, serving the automotive and electronic industry. With production facili-ties in Korea, BASF also provides various customized polyure-thane system solutions for construction, appliance, and auto-motive industries in Korea.

Furthermore, the unit imports and sells dispersion agents, plas-tic additives, oil additives, water treatment chemicals, packag-ing chemicals, fuels and lubricants, offering solutions to meet the sustainability challenges of almost all industries.

MongoliaUlaanbaatar

Yeosu

Ulsan Plastics

Shiheung

Daejeon

Gunsan

Ansan

Ansan Coatings

Seoul

Suwon EMC

Ulsan Chemicals

Ulsan Pigment

Head office Production sites Technology centers



14 15BASF in KoreaBASF in Korea

Ultrason® plant starts production in Korea

Ultrason®, one of BASF’s high performance thermoplastics, can withstand temperatures of up to 220 degrees centi-grade without altering its properties, and possesses out-standing chemical stability. Korea, as a leading electrical and electronic goods manufacturer, is well positioned to benefit from the local production of Ultrason®.

Electronic materials business in Korea In 2013 BASF established the Asia Pacific headquarters of its Electronic Materials business unit in Seoul, Korea in 2013, strengthening its electronic materials business in the Asia Pacific Region. The regional headquarters of the Electronic Mate-rials business unit is dedicated to marketing and product manage-ment, sales management and operational management for Asia Pacific. As the leading supplier of electronic materials for more than 30 years, BASF is offering a full portfolio of high purity and qual-ity process chemicals and specialized solutions for semicon-ductors, flat panel displays, and light, including LED and photo-voltaic to all customers in Asia Pacific. Furthermore, a new Electronic Materials Research and De-velopment (R&D) center Asia Pacific will open in 2014 in part-nership with Sungkyunkwan University in Suwon. This new regional R&D center will be BASF’s first R&D center to open in Korea and will serve the Asia Pacific region, together with elec-tronic materials R&D centers in Taiwan and Japan.

High performance specialty plastics plant in YeosuIn 2013, BASF inaugurated its Korean production plant for Ultrason® BASF’s polyarysulfone, a high performance thermo-plastics. The new plant, with an annual capacity of 6,000 met-ric tons, is the first of its kind to be built outside of Germany and serves the growing market in Asia Pacific, including Korea. Ultrason® applications are widely used in the electronics, automotive and aerospace industries for the production of heat-resistant, lightweight components. Ultrason® is also widely used in membranes for water treatment, fittings for drinking water pipelines or food contact parts such as in espresso machines or microwave-proof dishes.

New engineering plastics compounding plant in Yesan BASF will build a new engineering plastics compounding plant in Yesan in Chung Nam Province. With an initial annual capacity of 36,000 metric tons, this new plant will become the first plant to be built in the newly-established BASF Yesan site. With the production from the new plant, engineering plas-tics compounding capacity in Korea will more than double, strengthening BASF’s presence in this market as the leading producer and preferred business partner for engineering plas-tics. BASF also operates a similar compounding plant in An-san in Korea, producing Ultramid® and Ultradur® compounds which are used in automotive parts as well as the electrical and electronics industry.

Highlights

Ultrason® plant at BASF’s Yeosu site is the first of its kind outside of Germany

Business development

At a glanceBASF started its business in Korea in 1954, and is today one of Korea’s top ten chemical companies as well as an exemplary international company in Korea. BASF’s Korean entity, BASF Company Ltd., is a wholly-owned subsidiary of BASF SE and was established in 1998 through the integration of Hyosung BASF Co. Ltd., Hanwha BASF Urethane Co., Ltd., and BASF Korea Ltd. BASF offers a broad portfolio in Korea under two business units - chemicals and specialties - and operates six world-scale production sites in Yeosu, Ulsan, Gunsan and Ansan. BASF also operates five application centers in Daejeon, Ansan, Shiheung and Suwon. Since 2012, BASF’s business initiatives in Mongolia are also managed from Korea. BASF Mongolia, established in 2010, is a wholly owned subsidiary of BASF SE. BASF operates one pro-duction site in Ulaanbaatar producing construction chemicals such as concrete admixtures, enhancing concrete performance both in fresh and hardened states. Starting from 2013, the regional headquarters of BASF’s Electronic Materials business in Asia Pacific is located in Seoul, and a regional R&D center for electronic materials is to be established in Suwon in 2014.

For more information, see www.basf.co.kr

Local financial reporting

“BASF in Korea - Report 2013” includes information on sales of BASF Group companies to customers in Korea. In addition, BASF publishes financial data of its Korean entity, BASF Company Ltd., in accordance with local regulations. In 2013, BASF Company Ltd. recorded net sales of KRW 2,262 billion.

For more information, see dart.fss.or.kr

BASF in KoreaFacts and figures

In 2013, BASF achieved €1,045 million (2012: €1,031 million) in sales to customers in Korea, a slight increase compared to the previous year. As of December 31, 2013, BASF in Korea had 1,028 employees, six produc-tion sites and five techonolgy centers.

BASF exported locally-produced products from Korea to China, South East Asia, Europe, Middle East and Africa, contributing greatly to the Korean economy.

Sales

€1,045 million

Employees

1,028

Sales of BASF Group companies to customers in Korea (million €)

2013 1,045

2012 1,031



16 17Strategic areasStrategic areas

In 2050, around nine billion people will live on this planet. On the one hand, this population growth is associated with enormous global challenges but we also see many opportunities, especially for the chemical industry. We expect the chemical industry to grow particularly strongly in the emerging economies, and that these markets will account for around 60% of global chemical production by 2020. Innovations based on chemistry will play a key role in three areas in particular:

Resources, environment and climateDramatically rising energy demand is one of the world’s most pressing challenges. In addition, access to clean water and ef-ficient use of resources are becoming increasingly important.

Food and nutritionA growing world population obviously needs correspondingly more food. And it will be necessary to enhance nutrition quality.

Quality of lifePopulation growth and globalization present further challenges. Aspirations differ greatly from region to region and among dif-ferent social groups, but there is a common ambition: people want to improve their individual quality of life.

BASF’s products and solutions contribute to conserving re-sources, ensuring nutrition, and improving quality of life.

Strategic areasOverview

We create chemistry for a sustainable future

We combine economic success, social responsibility and environmental protection. Through science and innovation, we enable our customers in almost all industries to meet the current and future needs of society.

Coal, crude oil and natural gas - fossil resources will con-tinue to serve as important energy sources in the future. However, they will not be available indefinitely. It is nec-essary to use them sparingly, as well as to seek alterna-tives. That is why, for selected processes, BASF employs biomass that can be used for producing chemicals and generating electricity and steam. Even today, we already make a diverse range of products out of renewable re-sources.

How sugar can become a swimsuitWhether wood, straw or agricultural waste - plant cell walls con-tain the polysaccharide cellulose, a valuable renewable re-source. Cellulose is the largest organic raw material source on Earth. It is created through photosynthesis - a natural process through which plants use the sun’s energy to transform carbon dioxide and water into sugar compounds. And yet specialized processes are needed to obtain sugar components from cellulose for use as a renewable raw material. BASF is testing American company Renmatix’s PlantroseTM Process. This multistep pro-cess splits nonedible biomass into different industrial sugars. In the future, these could serve as important raw materials for the production of many basic and intermediate chemical products. One application is for the production of the intermediate 1,4-butanediol, for example. The process patented by the Amer-ican company Genomatica enabled BASF to, for the first time, produce commercial volumes of butanediol from industrial sugar in 2013. 1,4-butanediol is already used as a raw material for many of the everyday products we use today - such as plastics for skateboard wheels and elastic fibers for textiles. This means even a swimsuit could be based on renewable raw materials in the future.

From biomass to everyday productAnother opportunity to use renewable resources in the existing BASF Production Verbund is through the “mass balance method.” This process allows biomass to be used instead of fossil resources as a raw material at the beginning of the value chain, and then be later assigned to the respective sales pro duct. The advantage for customers is that product formulation and quality remain unchanged. BASF is supplying the first of such products - dispersions for construction adhesives - to a major manufacturer in adhesives whose products include floor-ing adhesives for the construction industry. Even baby diapers could be bio-based in the future: To-gether with the companies Cargill and Novozymes, BASF is de-veloping a technology to produce acrylic acid from renewable raw materials. Through this collaboration, trial amounts of 3-hy-droxypropionic acid have been in production since 2013 - an important raw material in the bio-based sodium acrylate pro-duction chain, which is in turn used to produce superabsor-bents. These can soak up large amounts of liquid and are there-fore an important component for baby diapers and other hygiene products. With bio-based baby diapers, diaper manufacturers will be able to address consumers’ increasing awareness of sus-tainability. BASF’s multifaceted product portfolio already offers nu-merous materials based on renewable raw materials today. In the personal care business, for example, Plantaquat® NC represents a new solution for hair conditioners that is based ex-clusively on renewable and biodegradable raw materials. As a combination emulsifier, stabilizing agent and conditioner, it ef-fectively guards the hair against breakage and reduces split ends.

For more on renewable resources, see basf.com/renewables

Resources, environment and climateRenewable resources: future alternatives

Sugar - a valuable raw material

Industrial sugars obtained from the cellulose of inedible biomass can serve as important feedstock for many basic and intermediate chemical products - for example, for the intermediate 1,4-butanediol.

Resources, environment and climate

Food and nutrition

Quality of life



18 19Strategic areasStrategic areas

Food and nutritionCrop protection: intelligent solutions for secure yields

Quality of lifeEveryday chemistry: innovations that make life easier

AgBalance® helps farmers improve their sustainability profile and, through energy-efficient production methods, contribute to climate protection.

With the Energy BoostTM running shoe, the impact energy is largely returned to the athlete.

Securing the world’s food sources

Ensuring enough food for a growing world population is one of the major challenges of sustainable development.BASF helps to meet this challenge by developing and producing innovative solutions to improve crop health and yields.

Improving quality of life

People around the globe aspire to enhance their individual quality of life. Innovations based on chemistry play a key role here, for they provide a critical contribution beyond known solutions.

Whether enjoying a cup of coffee, doing the laundry or getting some exercise - BASF’s innovations can be found in many of the products we use throughout the day. They make day-to-day tasks easier, and, thanks to their special chemical composition, often even provide a more environmentally friendly alternative to conven-tional products.

Coffee capsules made of compostable plasticIn many households, the day begins with a cup of coffee. When time in the morning is limited, this is often accomplished through a simple coffee capsule and the push of a button. Together with the Swiss Coffee Company, BASF has developed an innovative coffee capsule. What makes it so special? The coffee grounds’ high-quality roast aromas are sealed into an entirely composta-ble package. Instead of aluminum, the packaging is made of BASF’s biodegradable ecovio® plastic, which is predominantly based on renewable raw materials. This means that both cof-fee grounds and packaging can be discarded into the compost heap.

For more on ecovio, see basf.com/ecovio_e

Special polymers make laundry detergent more environmentally friendlyFreshly washed laundry should smell good, the colors should look bright, and, above all, the material should be stain-free. This usually takes a lot of water, energy and resources, putting a strain on the environment and climate. To combat this, BASF offers a wide array of highly efficient and environmentally friendly ingredients for detergents and cleaners. For example, BASF has developed special polymers under the brand name Sokalan® that enable the production of highly concentrated detergents. The active ingredients are effective in small doses, even work-ing in low temperatures to ensure clean laundry. At the same time, the reduced consumption of resources helps protect the environment.

For more on Sokalan, see basf.com/sokalan_e

More energy and fun while joggingTo keep physically fit, more and more people are going for a jog.You can run almost anywhere - all you need are comfortable clothes and the right pair of shoes. These should be selected carefully. A good shoe is comfortable and makes exercise even more fun. Together with adidas, BASF developed the Energy BoostTM shoe, which combines comfort with top running prop-erties. The shoe’s midsole is made up of around 2,500 extremely bouncy foam beads: BASF’s Infinergy® foam. The special prop-erties of this expanded thermoplastic polyurethane are exhib-ited particularly well in running: For one thing, the highly elastic material absorbs the shock of the foot’s impact. For another, it demonstrates outstanding resilience. After being compressed, the foam springs instantly back into its original shape and sends the impact energy back to the runner.

For more on Infinergy, see basf.com/infinergy_e

A growing world population demands a lot from agricul-ture. The Earth’s surface may comprise around 13 billion hectares - but the capacities of arable land are limited. An environmentally friendly and resource-saving ap-proach helps to ensure enough food for the world’s pop-ulation. BASF meets this challenge by developing crop protection products and fostering responsible agricul-ture.

Improving plant healthWeeds, pests, disease - many external factors can damage crops and impair the harvest. One of the most destructive soy-bean diseases is Asian soybean rust - a fungal infection that re-duces farmers’ crop yields. Farmers have recently been able to turn to BASF’s fungicide Xemium® to combat this fungal dis-ease. Xemium is applied directly to the seeds and, from there, distributed throughout the entire plant as the plant grows. Small amounts are enough to ensure long-lasting protection.

For more on Xemium, see basf.com/xemium

Rice is a main food source for a large percentage of the world’s population, and thus one of the most important crops of all. “Red rice,” a type of wild grass, can cause considerable harvest losses in rice cultivation. BASF’s Clearfield® Production System provides a solution: It combines a broadband herbicide with Clearfield technology’s nontransgenic, herbicide-tolerant seeds, which can result in up to three times greater rice yields.

For more on Clearfield, see basf.com/Clearfield

Promoting responsible agricultureBASF develops product solutions and supports its customers in their application. The company provides them with training in the safe and environmentally conscious use of crop protection products. For example, BASF’s Samruddhi initiative has supported smallholder soybean farms in India since 2006. “Samruddhi” means “success” in the ancient Indian language Sanskrit. The project’s goal is to improve economic conditions for Indian farm-ers. BASF agronomists work together with farmers to show how they can secure reliable yields in the long term under fluctuat-ing climatic conditions by protecting the plants from pests and disease.

For more on Samruddhi, see basf.com/samruddhi

BASF also launched AgBalance® in India in 2013. With this method, farms can be evaluated in terms of ecological, eco-nomic and social indicators along the entire value chain and po-tential for improvement can be identified. Farmers can thus im-prove their sustainability profile. Emissions and energy use also play a role, as do considerations of cost, future generations and consumers.

For more on AgBalance, see basf.com/agbalance


21“We create chemistry” world tour

“We create chemistry” world tour in Korea

Innovation creates opportunities Innovations are the foundation of BASF long-term success as the world’s leading chemical company. The “We create chemistry” world tour showcased innovations for a sustainable future. Starting from January 2012, the tour travelled the globe, giving stakeholders an opportunity to experience BASF’s inno-vative ideas first-hand. The innovations provide answers to the questions of the future, such as how in the coming years we will address rising energy demand, growing world population and higher aspirations for quality of life. The world tour, which was kicked off in Mannheim, Germany, travelled to nine cities worldwide, including a stop in Korea.

“We create chemistry” world tour in Korea BASF presented the “We create chemistry” world tour in Seoul from May 30 to June 1, 2013. At the exhibition, BASF introduced 20 comprehensive in-novative products and solutions ranging from organic solar cells to electro-mobility solutions, to modern insulation mate-rials and sustainable concrete technologies to stakeholders in Korea. A total of 1,400 visitors, including customers, employees, employees’ families, students, and the general public in Ko-rea, discussed how to meet the challenges of sustainability through chemistry.


20 “We create chemistry” world tour

“We create chemistry” world tour

The “We create chemistry” world tour provided an opportu-nity to explore the latest innovations and exchange ideas. Participants actively discussed ways to meet the challenges of sustainability through chemistry.

At the “We create chemistry” world tour in Seoul, Korea, 1,400 visitors, including customers, employees, families, students and the general public discussed

how to address the challenges of sustainability through chemistry.

BASF showcased world-class innovations from around the world. 20 selected innovations were introduced in booths.



22 23Environment, health and safetyEnvironment, health and safety

Environment, health and safetySafety, security and health

BASF’s Responsible Care Management System (RCMS) comprises the global rules, standards and procedures for environmental and health protection, safety and security for the various stations along our value chain. It allows BASF to achieve compliance with regulatory and internal requirements, operate safe and environmentally sound facilities and man-ufacture safe products. Adherence to the processes in RCMS drives continuous improvement in perfor-mance and increases the efficiency and effective-ness of EHS-related activities. In Korea, BASF has obtained KOSHA 18001 and KGS/OHSAS 18001. BASF fully complies with legis-lative requirements in Korea, including Process Safety Management, for the systematized manage-ment of its employees' occupational health and safety.

Product stewardshipChemical products can bring about tremendous benefits to human life, yet the mistreatment or mismanagement of such products has the potential to result in damage to both humans and the environment. That is why BASF in Korea is fully commit-ted to Product Stewardship, one of the major codes of Respon-sible Care. The core activity of Product Stewardship is to ensure com-pliance with the regulations governing chemical products and voluntary management of chemical products. BASF understands that compliance with chemical products regulations is a prereq-uisite for its license to operate, and the voluntary management of chemical products is essential to achieve a sustainable busi-ness. With that in mind, BASF has set itself global goals which involve completing risk assessments on all BASF products by 2020 that are sold worldwide by BASF in quantities of more than one metric ton per year. BASF in Korea actively contributes to this goal in Korea.

Occupational safetyBASF puts the safety of its employees as its top priority. For this reason, BASF invests every effort into creating and maintaining a safe workplace in Korea as it does around the world. A bien-nial campaign is carried out to enhance safety awareness, and there is a thorough work permit process in place for safety and the proper management of individual safety equipment. In 2013, BASF was free from any accident or injury to an employee of BASF in Korea (lost time injury rate 2012: 1.0 per million working hours). A contractor’s accident resulted in a lost time injury rate of 1.3 per million working hours (lost time injury rate of 2012: 3.4 per million working hours).

Transportation and distribution safety BASF in Korea has in place a standard safety procedure and a transportation checklist in order to reinforce transportation safety. It conducts a full audit on all transportation vehicles upon their entry on-site in order to ensure the sole use of vehicles that ful-fill the requirements for safe transportation. BASF employs transportation safety experts in Korea to assess potential transportation contractors. Furthermore, BASF in Korea does not continue working with any contractors that fail to meet the safety requirements. All transportation contractors currently employed are provided with regular audits and training to maintain full adherence with safety standards.

Occupational health BASF in Korea maintains up-to-date Health Performance Index (HPI) readings. HPI comprises occupational disease, medical emergency planning, first aid, preventive medicine, and health promotion. In addition, BASF identifies any health-related risk in Korea by thoroughly inspecting the work environment and car-rying out regular medical check-ups for its employees. The Seoul office and all sites have an Automated External Defibrillator for any possible emergency. In addition, BASF cooperates with the Seoul Jung-gu Health Center on a campaign for the collection of out-of-date medicines to prevent the careless disposal of medication that may damage the environment.

Process safety BASF ensures that all sites in Korea are kept clean through reg-ular monitoring at each site. In line with BASF regulations, an En-vironment, Health, and Safety review is carried out at each level of a new investment and change tracking is undertaken for any change in process, employees and procedures.

BASF carries out safety inspections regularly for all site facilities in Korea to ensure safety. A strict standard for accident report-ing is in place and even slight accidents are investigated as part of BASF’s commitment to preventing accidents.

Emergency response and community awareness BASF has a rigorous emergency management system in place in Korea for prompt emergency response and accident manage-ment. It carries out emergency response training for employees regularly. BASF cooperates with local fire stations in Korea for joint and nighttime training to prepare employees for any possi-ble emergency. BASF’s periodic newsletter “Love Environment, Love Safety” also facilitates communication with local residents, enhancing public understanding of environment and safety issues through fun and easy contents.

Security BASF has strengthened its security management regulations in Korea to protect the company’s assets and confidential infor-mation. All employees of BASF in Korea work in compliance with the regulation and protect the company’s assets from any possible risk. BASF carries out a range of security activities in Korea that include security inspections of all sites and the offices by a security manager from the local head office, with security training for new-comers and a campaign to enhance security.

Responsible Care® management system

The Responsible Care® Management System (RCMS) com-prises the global rules, standards and procedures for envi-ronmental and health protection, safety and security for the various stations along our value chain. Using the RCMS, BASF ensures compliance with regulatory and internal re-quirements, driving continuous improvement in EHS perfor-mance of facilities, processes and products.

First aid training for employees and the families

BASF employees and their families including children were invited for first aid training during their summer vacation. Families constructed their own dummies, performed car-diopulmonary resuscitation and learned to use automatic heart defibrillators.

Lost time injury rate contractors (per million working hours)

2013 1.3

2012 3.4

Lost time injury rate BASF employees (per million working hours)

2013 0

2012 1.0



24 25Environment, health and safetyEnvironment, health and safety

Greenhouse gas emissions1 (total) - (metric tons of CO2 equivalents)

2013 745,416

2012 626,069

¹ CO2, N2O, CH4, HFC, PFC, SF6

Environmental protection

EnergyElectricity consumption of BASF in Korea in 2013 increased to 603,158 MWh, up by 42% from the previous year (2012: 424,115 MWh), and steam consumption increased by 18% to 1,778,418 metric tons, from 1,508,843 metric tons in 2012. Fuel consump-tion reached 988,751 MWh, up by 5% from the previous year (2012: 943,692 MWh). The increase was caused by the growth in production and the test operation of a new production plant at BASF’s Yeosu site.

Emissions to airBASF strictly manages the emission of air pollutants coming from production in Korea and undertakes continuous process en-hancement to minimize these emissions. Air pollutants are properly treated at a treatment facility with constant monitoring. BASF emitted 745,416 metric tons of CO2 equivalents in Ko-rea in 2013 (2012: 626,069 metric tons of CO2 equivalents), and the total emission of air pollutants stood at 563 metric tons (2012: 458 metric tons). These increases were largely due to the growth in production and the test operations of a new production plant at BASF’s site in Yeosu.

Water Production facilities of BASF in Korea required a total supply of 5,726 thousand cubic meters of water in 2013 for production and cooling (2012: 5,092 thousand cubic meters). Water used for production was 2,955 thousand cubic meters (2012: 2,802 thousand cubic meters) and water used for cooling was 303,010 thousand cubic meters (2012: 269,294 thousand cubic meters). BASF in Korea carries out stringent wastewater treatment and management, improving the rate of wastewater recycling and introducing the latest wastewater treatment methods. The regulations that BASF in Korea applies to the internal emissions criteria for pollutants are stricter than the legislative requirements. Wastewater from each site goes through a physiochemical and biological treatment process and high-density wastewater goes through a special wastewater incinerator. In addition, BASF has installed emergency blockade facilities at sites in Korea, as well as a water tank separating rainwater and sewage for use in an emergency. Wastewater, once separated, is dispatched for wastewater treatment once again before being finally discharged. A waste water risk assessment is regularly conducted to identify and prevent any risk from the wastewater in order to ensure stable and sustainable business. The BASF site in Gunsan has developed and implemented a Vitamin B2 Fermentation Residue facility that concentrates the high-density wastewater produced from its Vitamin B2 manufac-turing line for use as recycled animal feed. These efforts have en-abled BASF to reduce the emissions of organic substances by 60%, from 3,035 metric tons in 2012 to 1,243 metric tons in 2013 and the total emissions of nitrogen by two-thirds in (2013: 138 metric tons ; 2012: 205 metric tons). Emissions of heavy metals were below detectable levels in 2013 (as in 2012).

Experts from the Korean Foundation for Quality conducted document and onsite reviews on certificate requirements.

2013 2012

1 Production 2,955 2,802

2 Cooling 303,010 269,294

Air pollutants2 (total) - (metric tons)

2013 563

2012 458

² CO, NOx, NMVOC, SOx, dust, NH3/other inorganics

Emissions to water (total): Nitrogen - (metric tons)

2013 138

2012 205

Emissions to water (total): Organic substances (COD) - (metric tons)

2013 1,243

2012 3,035

Emissions to water (total): Heavy metals - (metric tons)

2013 0

2012 0

Electricity consumption (total) - (MWh)

2013 603,158

2012 424,115

Steam consumption - (metric tons)

2013 1,778,418

2012 1,508,843

Fuel consumption (central power plants and boilers) - (MWh)

2013 988,751

2012 943,692

Water consumption in Korea (1,000 cubic meters)

While we used 303,010 thousand cubic meters of water for cooling and 2,955 thousand cubic meters of water for production in

2013, thanks to recirculation our actual water supply was only 5,726 thousand cubic meters.

Water supply Water use

Quality and environmental management audit

BASF has launched a new energy management system at its sites in Korea and obtained ISO50001 for an increase of its energy efficiency. BASF production sites in Korea regu-larly undergo follow-up reviews on their certificates for Quality Management (ISO 9001) and Environmental Man-agement Systems (ISO 14001).

2013 5,726

2012 5,092



26 27EmployeesEnvironment, health and safety

Waste BASF in Korea is fully committed to minimizing and recycling the waste produced at all of its sites. Each employee must mea-sure, report and sign off on any waste leaving the site. Waste is classified into sub-groups in order to improve over-all recycling efficiency, with strict management in place at waste storage houses. To reduce waste, BASF recycles waste resin and packages and turns wastewater sludge into an industrial feed raw material. BASF works continuously to reduce waste in Korea, improve its processes and develop new ways to recycle. Through such efforts, BASF in Korea recycled 22,260 metric tons of waste (2012: 17,381 metric tons) out of total 39,702 metric tons of waste in Korea in 2013 (2012: 36,028 metric tons). The use of a coal boiler in Yeosu Plant has resulted in an increase in the amount of waste by 10% compared with 2012, while the recycling rate has increased to 56%, up from 48% in the previous year. BASF in Korea carries out periodic audits of its waste treat-ment contractors to ensure that there is a safe and transparent waste treatment process in place, and provides them with in-formation and training for their safety.

56%

48%

■ Amount of waste■ Amount of recycled waste

Waste (Total) - (metric tons)

2013 39,702

2012 36,028

EmployeesKey for success

BASF in Korea cultivates a working environment that inspires and connects people. As of the end of 2013, BASF in Korea had 1,028 employees (2012: 977). The establishment of regional headquarters for elec-tronic business and the newly built thermoplastics plant in Yeosu contributed to the increase in BASF headcount in Korea. BASF employees are fundamen-tal to achieving the goals of the “We Create Chem-istry” strategy. To meet the targets established by our regional Asia Pacific strategy “grow smartly,” the company requires a high performance culture. BASF aims to attract the right people and create space for their performance and personal develop-ment across regions, divisions and teams.

Strategy Our Best Team Strategy is derived from our corporate strategy and simultaneously contributes to its implementation. We want to form the best team. To achieve this, we put focus on three strategic directions: excellent people, excellent place to work and excellent leaders. We concentrate on increasing our attrac-tiveness in worldwide labor markets, sharpening our focus on career development, and life-long learning in all regions, as well as supporting and developing our leaders.

Recruitment and new graduate programsTo meet the most talented, passionate and enthusiastic gradu-ates in Korea, BASF actively participates in various job fairs and campus recruiting sessions in universities throughout the year to meet candidates who could build mutual trust, respect and dedication to top performance within BASF. BASF aims to recruit, train and develop graduates in Korea by offering customized training and job rotation to lay a solid foundation for career development under the New Graduate Pool program. This program offers new employees the oppor-tunity to adapt smoothly to the company and discover their ca-pabilities and aptitudes while experiencing various positions within the company.

Career development Many talented employees working in Korea are provided with op-portunities to work overseas in BASF companies worldwide. BASF‘s global training program develops employees’ abilities and assists in developing their future career paths. The BASF Learn-ing Campus, established globally, offers employees with a glob-ally consistent network and further training through special pro-grams in the future. These training programs and facilities cultivate individuals’ capabilities and support the employees on their way to becoming overall group leaders. On a global basis, BASF strongly emphasizes the impor-tance of communication between its top management and its employees. Employee dialogs are conducted in 99% of BASF Group companies worldwide between the management and em-ployees regularly, allowing open conversations to enhance the open and transparent corporate culture. Furthermore, based on this dialog culture, BASF in Korea also conducts development dialogs between the team leader and the employees in outlining together the prospects for individual professional development and determining concrete measures for further training and development.

A welcome ceremony was held in Yeosu for newly hired employees for the Ultrason® project.

Number of employees (As of December 31)

2013 1.028

2012 977

An EHS audit team from BASF headquarters in Germany reviews health care and infrastructure systems in BASF sites in Korea.

A Joint investigation team from the Korean government’s prosecutors and the Ministry of Labor visited BASF Yeosu site for a safety and environment audit.

New steam supply project in Ulsan pigment site

BASF’s Pigment Site in Ulsan implemented a new steam supply project in 2013, substituting lower cost steam for current high cost steam. The project began in March 2013 when council approval was given for 2.5 km road construc-tion from BASF Ulsan Chemicals Site to the Ulsan Pigment Site. Installation of the pipe lines for condensed water and demi-water were completed in August without any acci-dents.



28 29Employees

BASF Kids’ Lab participants in Korea (2003 - 2013)

3,333

SocietyBuilding sustainable partnerships

Social responsibility BASF aims to be an attractive employer, reliable partner and good neighbor. We are involved in diverse projects worldwide, especially in the communities in which our sites are located. Our main focus is on education and sustainability. In this way, we promote innovative capacity and future viability.

BASF Kids’ Lab BASF has invited children across Korea to attend BASF Kids’ Lab since 2003. BASF Kids’ Lab is an interactive chemistry ed-ucation program designed for children aged 6 to 12. Children can experience the enjoyable and creative world of chemistry by participating in carefully chosen, safe experiments that dem-onstrate the importance of chemistry in everyday lives. BASF Kids’ Lab marked its 10th anniversary in Korea since 2003 when it was first launched. In celebration of the occasion, BASF Kids’ Lab visited the elementary schools in Ulsan and Yeosu where the program first began in Korea. More than 100 children took part in BASF Kids’ Lab in 2013, making a total of more than 3,300 participants since 2003. A total of 18,631 kids participated Kids’ Lab in the Asia Pacific region in the year 2013. The Kids’ Lab program is expanded each year.

Community science education Providing education opportunities and offering more access to science education is very important for BASF. Therefore, BASF grants scholarships to university students and graduates each year in Korea. Furthermore, based on strong industry-academic relationships in Korea, BASF has offered promising university students and graduates opportunities for summer internships at the BASF headquarters in Germany since 2009. BASF was also one of the first companies in Korea to launch a web magazine, entitled “Chemizine” in 2003. Since then BASF has been providing the public with attractive educational con-tent to enhance the understanding of science and chemistry among students and the general public. Comprehensive infor-mation about BASF solutions that affect everyday lives is posted on BASF websites, and since 2012, easy-to-read and fun chem-istry content is provided via a social media platform for inter-ested users and social media users.

BASF celebrated the 10th anniversary of Kids’ Lab in Korea.

Society

Work-life balance To create a good working environment, BASF has developed and expanded a wide range of programs to help employees better combine their professional and personal lives. To com-pete for qualified employees, BASF responds to employees’ varying needs and life stages. BASF currently offers diverse working models in Korea such as flexible working hours and mobile working. At BASF in Korea, an eight hour working day can be flexi-ble, depending on each person’s work specifics and schedule. All sales employees in Korea are provided with work flexibility, allowing them to work at customers’ offices or other locations that suit them, to maximize their efficiency and reduce any un-necessary travel. Functional divisions have also implemented a core work-ing hour system in terms of flexible working hours. Employees must be present during the core working hours of 9:30 a.m. to 4:30 p.m. but schedules can otherwise be flexibly adjusted to suit individual needs. Furthermore, BASF in Korea runs a “day off in lieu” program, offering employees an equal day off for hours worked on holidays or weekends. The program was launched in 2010 to benefit employees who have to work out-side of normal working hours.

Family program BASF values employees and their family members. Every other Wednesday is designated as Family Day at BASF in Korea en-couraging BASF employees to leave work on time to spend more time with their families for more work-life balance. BASF in Korea has also participated in the “BASF Global Family” program since 2008. Through this BASF global holiday exchange program, employees’ children aged from 14 to 19 can visit other BASF employees’ children located in other countries for two weeks to experience and understand different lifestyles and cultures.

Diversity + Inclusion To meet the various needs of our customers and markets, BASF relies on the best team in all areas and functions. The inclusion of diversity is an important component of our strategic human resources management. It helps to continuously improve our team’s performance and power of innovation, and increases creativity, motivation and identification with the company. This is the reason BASF promotes the appreciation of diversity and its inclusion. Diversity and inclusion are core factors for business suc-cess and key to achieving a high level of engagement among BASF employees. Therefore BASF in Korea has formed a Di-versity + Inclusion (D+I) committee within the company and is running a series of activities in Korea to help enhance the un-derstanding of diversity and inclusion and encourage all em-ployees to apply these principles in their daily work. BASF also aims to improve diversity and inclusion to take advantage of the skills of employees from a variety of back-grounds and age groups. In 2013, the two largest groups of employees at BASF in Korea by age were the 40-54 and 26-39 age groups, the same as in the previous year.

BASF cultivates a working environment in Korea that inspires and connects people.

Employee age structure(proportion of employees as of 2013)

Up to and including 25 years 4.3%

Between 26 and 39 years 38.4%

Between 40 and 54 years 54.8%

55 years and older 2.5%



30 31Society

Close dialog with local communities BASF focuses on regular and open communication with local com-munities in Korea where BASF production sites are located. With Community Advisory Panels (CAPs), BASF provides transparent information about its activities and discusses current issues with the panel members, around 10 opinion leaders within the local community, including environment, health, and safety experts, uni-versity professors, teachers, and medical doctors, etc. BASF is the first chemical company to set up a CAP in Yeosu, Korea. The CAP meetings at the Yeosu site are held quarterly, and have become an example to the industry. Together with the CAP meetings, BASF publishes a quarterly CAP newsletter en-titled “Love Environment, Love Safety” to enhance public under-standing of environment and safety issues. A structured, continuous community dialogue is also a cru-cial part of BASF’s strategy to foster sustainable growth in Korea. BASF currently supports 84 community advisory panels around the world.

Employee donations in Korea Following the decision of the Board of Executive Directors of BASF SE to contribute €300,000 as an immediate aid to vic-tims of Typhoon Haiyan, BASF employees in Korea also con-ducted a voluntary donation campaign to help the typhoon vic-tims. The collected aid funds were sent directly to the Red Cross Philippines. BASF in Korea delivered KRW 15 million to UNICEF in Korea to help children in Africa suffering from Malaria. To promote the message and raise the public awareness, BASF organized a BASF Mosquito Net donation campaign in its social media in commem-oration of “World Malaria Day.” To celebrate the year-end holiday season, BASF employees in Korea held a fund-raising campaign within the company to help the neighbors in need. A total of around KRW 13 million was col-lected and donated to social welfare organizations.

Volunteer projects for communities BASF employees in Korea participate in community services where BASF production sites are located. The “Love Always Ser-vice Club”, comprised of 150 volunteers of the BASF Yeosu site, provides home repair services since 2005 for local residents in poor living conditions. Employees of BASF production sites in Ulsan and Yeosu also participate each year making kimchi to donate to people in need in the neighboring communities. This demonstrates BASF’s effort and commitment as an active member of the community. BASF employees and their family members gathered for a volunteer wall - painting project in Seoul. This volunteer event was held on the theme of ‘travel around the world, children all over the world’ to inspire children of the next generation who will grow into global leaders. Participants took part in coloring the wall with key monuments from each continent. BASF is committed to ensuring that economic benefits never come before environment, safety and health. BASF not only prac-tices this at its own production sites in Korea, but also promotes environmental protection and safety in the community through a number of volunteer activities. For instance, BASF is actively en-gaged in the “One Company - One River” and “One Company - One Mountain” cleaning initiatives to protect and preserve the environment around us.

BASF employees are joining in a variety of meaningful community activities.

Community engagement

BASF aims to be a good neighbor to local communities in Korea. More than 150 volunteers of the BASF Yeosu site have formed the “Love Always Service Club” in 2005 and have been leading the community services, providing home repair services to the houses of less privileged households within the community.

Recognition

Recognition

Prime Minister’s Award for gender-equal employmentBASF Korea was awarded with the Prime Minister’s Award at the 2013 Gender-Equal Employment Opportunity Awards. BASF Korea was recognized for its outstanding performance in help-ing employees of both genders enjoy equal rights in their work life. BASF especially was considered a highly women-friendly company, fostering women leaders, with a family oriented cor-porate culture via various programs such as core time, mobile office and family day.

Minister’s Award from the Ministry of Trade, Industry and EnergyDong-won Kim (right), Site Manager of BASF Ulsan Chemicals Site received a Minister Award from the Ministry of Trade, Indus-try and Energy in recognition of his efforts in creating a zero ac-cident record through continuous environmental safety and health activities.

BASF gains recognition

BASF in Korea has gained recognition from local governments and organizations for its exemplary corporate citizenship and for

its excellent business and labor relations. In addition, each site has established and operated systems for the management of

quality, environment, safety and health, which have been certified by relevant bodies.


32 BASF in Korea Report 2013

33The BASF GroupConnect with BASF in Korea

Connect with BASF in Korea

Corporate Office

BASF Company Ltd.

14-16F, KCCI Bldg., 39 Sejoingdaero, Jung-gu,

Seoul, Korea , 100-743

Phone : +82 2 3707 3100

Fax : + 82 2 3707 3122

Technical Development Centers

BASF Company Ltd. Daejeon Application Technology Center

755, Daedeok-daero, Yuseong-gu, Daejeon, Korea, 305-348Phone : +82 42 865 2800 Fax : +82 42 865 2888

BASF Company Ltd. Ansan Coatings Technology Center

4F, Gyeonggi Technopark Business Support Center, 705, Haean-ro,

Sangnok-gu, Ansan-si, Gyeonggi-do, Korea, 426-901

Phone : +82 31 8040 6901

Fax : +82 31 8040 6900

BASF Company Ltd. Ansan CAE Technology Center

171, Sinwon-ro, Danwon-gu, Ansan-si, Gyeonggi-do, Korea, 425-833

Phone : +82 31 599 7502

Fax : +82 31 599 7506

BASF Company Ltd. Shiheung Technical Service Center

1Ma-702, Shihwa Industrial Complex Estate, 73, Okgucheonseo-ro 81beon-gil,

Siheung-si, Gyeonggi-do, Korea, 429 -852

Phone : +82 31 319 1262

Fax : +82 31 319 1270

BASF Company Ltd. Suwon EMC Application Technology Center

Room No. 83579, 5F, Research Complex 2, 2066, Seobu-ro, Jangan-gu,

Suwon-si, Gyeonggi-do, Korea, 220-746

Phone : +82 31 219 8783

Fax : +82 31 298 0277

Production Sites

BASF Company Ltd. Ansan Site

171, Sinwon-ro, Danwon-gu, Ansan-si, Gyeonggi-do, Korea, 425-833

Phone : +82 31 599 7513

Fax : +82 31 599 7506

BASF Company Ltd. Gunsan Site

57, Oehang 4-gil, Gunsan-si, Jeollabuk-do, Korea, 573-400

Phone : +82 63 469 2400

Fax : +82 63 463 0929

BASF Company Ltd. Yeosu Site

284, Yeosusandan 2-ro, Yeosu-si, Jeollanam-do, Korea, 555-280

Phone : +82 61 680 7000

Fax : +82 61 691 7260

BASF Company Ltd. Ulsan Site-Chemicals

27, Sinyeocheon-ro, Nam-gu, Ulsan, Korea, 680-090

Phone : +82 52 278 2000

Fax : +82 52 278 2001

BASF Company Ltd. Ulsan Site-Plastics

143, Sanggae-ro, Nam-gu, Ulsan, Korea, 680-180

Phone : +82 52 279 7900

Fax : +82 52 272 7999

BASF Company Ltd. Ulsan Site-Pigment

272-2, Yeocheon-dong, Nam-gu, Ulsan, Korea, 680-090

Phone : +82 52 229 0245

Fax : +82 52 269 8805

Million € 2004 2005 2006 2007 2008 2009 2010 2011 20121 2013

Sales and earnings

Sales 37,537 42,745 42,745 52,610 57,951 62,304 50,693 63,873 72,129 73,973

Income from operations before depreciation and amortization (EBITDA)

7,685

8,233

9,723

10,225

9,562 7,388

11,131

11,993

10,009 10,427

Income from operations (EBIT) 5,193 5,830 6,750 7,316 6,463 3,677 7,761 8,586 6,742 7,273

Income before taxes 4,347 5,926 6,527 6,935 5,976 3,079 7,373 8,970 5,977 6,713

Income before minority interests 2,133 3,168 3,466 4,325 3,305 1,655 5,074 6,603 5,067 5,173

Net income 2,004 3,007 3,215 4,065 2,912 1,410 4,557 6,188 4,819 4,842

Capital expenditures, depreciation and amortization

Additions to property, plant and equipmentand intangible assets

2,163

2,523 10,039

4,425

3,634 5,972 5,304 3,646

5,263 7,513


Depreciation and amortization of property,plant and equipment and intangible assets

2,492

2,403

2,973

2,909

3,099 3,711

3,370

3,407 3,267 3,154


Number of employees

At year-end 81,955 80,945 95,247 95,175 96,924 104,779 109,140 111,141 110,782 112,206

Annual average 85,022 80,992 88,160 94,893 95,885 103,612 104,043 110,403 109,969 111,844

Personnel expenses 5,615 5,574 6,210 6,648 6,364 7,107 8,228 8,576 8,963 9,285

Research and development expenses 1,173 1,064 1,277 1,380 1,355 1,398 1,492 1,605 1,732 1,835

Key data

Earnings per share2,3 € 1.83 2.87 3.19 4.16 3.13 1.54 4.96 6.74 5.25 5.27

Cash provided by operating activities4 4,634 5,250 5 5,940 5,807 5,023 5,693 6,460 7,105 6,602 7,870

EBITDA margin % 20.5 19.3 18.5 17.6 15.3 14.6 17.4 16.3 13.9 14.1

Return on assets % 13.2 17.7 17.5 16.4 13.5 7.5 14.7 16.1 11.0 11.6

Return on equity after tax % 12.9 18.6 19.2 22.4 17.0 8.9 24.6 27.5 19.9 19.4

Appropriation of profits

Net income of BASF SE6 1,363 1,273 1,951 2,267 2,982 2,176 3,737 3,506 2,880 2,826

Dividends 904 1,015 1,484 1,831 1,791 1,561 2,021 2,296 2,388 2,480

Dividend per share2 € 0.85 1.00 1.50 1.95 1.95 1.70 2.20 2.50 2.60 2.70

Number of shares as of December 312,7 million 1,080.9 1,028.8 999.4 956.4 918.5 918.5 918.5 918.5 918.5 918.5

1 We have applied International Financial Reporting Standards 10 and 11 as well as International Accounting Standard 19 (revised) since January 1, 2013. Figures for 2012 have been restated; no restatement has been made for 2011 and earlier.

2 We conducted a two-for-one stock split in the second quarter of 2008. The previous year’s figures for earnings per share, dividend per share and number of shares have been adjusted accordingly.

3 Adjusted for special items and impairment of intangible assets, earnings per share were €5.37 in 2013 and €5.64 in 2012.4 Includes the change in reporting from 2009 onward of the effects of regular extensions of U.S. dollar hedging transactions 5 Before external financing of pension obligations6 Calculated in accordance with German GAAP7 After deduction of repurchased shares earmarked for cancellation

Ten-year summary

Documents

BASF in Korea · BASF in Korea Report 2013 The cover photo shows a BASF employee wearing glasses with the frame made of BASF Ultrason ®.This high performance thermoplastics with