BASF in Japan - BASF Asia Pacific
BASF in Japan - BASF Asia Pacific
BASF in Japan - BASF Asia Pacific
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<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
B<br />
Report 2010<br />
Mill<br />
Sal<br />
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Adj<br />
EBI<br />
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Seg<br />
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CONTACTS<br />
www.japan.basf.com<br />
A PDF version of this report is available onl<strong>in</strong>e.<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd. Corporate Communications<br />
Roppongi Hills Mori Tower 21F, 6-10-1 Roppongi, M<strong>in</strong>ato-ku, Tokyo 106-6121<br />
TEL: 03-3796-5111<br />
FAX: 03-3796-4111<br />
<strong>BASF</strong> supports the worldwide Responsible Care ®<br />
<strong>in</strong>itiative of the chemical <strong>in</strong>dustry.
<strong>BASF</strong> GROUP 2010<br />
Million €<br />
2010 2009 Change <strong>in</strong> %<br />
Sales 63,873 50,693 26.0<br />
Income from operations before depreciation and amortization (EBITDA) 11,131 7,388 50.7<br />
Income from operations (EBIT) before special items 8,138 4,852 67.7<br />
Income from operations (EBIT) 7,761 3,677 111.1<br />
Income before taxes and m<strong>in</strong>ority <strong>in</strong>terests 7,373 3,079 139.5<br />
Net <strong>in</strong>come 4,557 1,410 223.2<br />
Earn<strong>in</strong>gs per share (€) 4.96 1.54 223.2<br />
Adjusted earn<strong>in</strong>gs per share (€) 5.73 3.01 90.4<br />
EBITDA <strong>in</strong> percent of sales 17.4 14.6 -<br />
Cash provided by operat<strong>in</strong>g activities 6,460 5,693 13.5<br />
Additions to long-term assets 1 5,304 5,972 (11.2)<br />
Exclud<strong>in</strong>g acquisitions 2,565 2,536 1.1<br />
Research costs 1,492 1,398 6.7<br />
Amortization and depreciation 1 3,370 3,711 (9.2)<br />
Segment assets (as of December 31) 2 48,626 40,707 19.5<br />
Personnel costs 8,228 7,107 15.8<br />
Number of employees (as of December 31) 109,140 104,779 4.2<br />
1<br />
Intangible assets and property, plant and equipment (<strong>in</strong>clud<strong>in</strong>g acquisitions)<br />
2<br />
Intangible assets and property, plant and equipment, <strong>in</strong>ventories and bus<strong>in</strong>ess-related receivables<br />
BUSINESS DEVELOPMENT 2010<br />
<strong>BASF</strong> achieved record sales and earn<strong>in</strong>gs <strong>in</strong> 2010. The chemicals bus<strong>in</strong>ess <strong>in</strong> particular benefited from the strong economic<br />
recovery <strong>in</strong> 2010, which was more dynamic than we had <strong>in</strong>itially anticipated. In the first half of the year, demand was<br />
additionally driven by <strong>in</strong>ventory restock<strong>in</strong>g <strong>in</strong> key customer <strong>in</strong>dustries. There were temporary supply bottlenecks for some<br />
chemical products. Higher raw materials costs could largely be passed on to customers. In this favorable market environment,<br />
marg<strong>in</strong>s improved for numerous products. Compared with 2009, sales <strong>in</strong>creased by 26% to €63,873 million. Income from<br />
operations improved by 111% and amounted to €7,761 million.<br />
<strong>BASF</strong> GROUP 2010<br />
SALES AND EBIT 2010<br />
compared with previous year<br />
• Record sales and earn<strong>in</strong>gs achieved <strong>in</strong> 2010<br />
• Cognis acquisition strengthens portfolio with<br />
specialty products<br />
• Outlook 2011: <strong>BASF</strong> aims to significantly<br />
<strong>in</strong>crease sales and earn<strong>in</strong>gs<br />
Sales<br />
EBIT<br />
+26% +111%
<strong>BASF</strong>’S SEGMENTS AT A GLANCE<br />
K<br />
CHEMICALS<br />
PLASTICS<br />
PERFORMANCE PRODUCTS<br />
C<br />
1<br />
2<br />
3<br />
P<br />
In the Chemicals segment, we supply<br />
products to customers <strong>in</strong> the chemical,<br />
electronics, construction, textile, automotive,<br />
pharmaceutical and agricultural <strong>in</strong>dustries<br />
as well as many others. Furthermore, we<br />
ensure that other <strong>BASF</strong> segments are<br />
supplied with chemicals for the production of<br />
downstream products. Our portfolio ranges<br />
from basic chemicals, glues and electronic<br />
chemicals for the semicon ductor and solar<br />
cell <strong>in</strong>dustries, to solvents and plasticizers,<br />
as well as start<strong>in</strong>g materials for products<br />
such as detergents, plastics, textile fibers,<br />
pa<strong>in</strong>ts and coat<strong>in</strong>gs, and pharmaceuticals.<br />
The Plastics segment <strong>in</strong>cludes a broad range<br />
of products, system solutions and services.<br />
We offer a number of eng<strong>in</strong>eer<strong>in</strong>g plastics<br />
for the automotive and electrical <strong>in</strong>dustries<br />
as well as for use <strong>in</strong> household appliances<br />
and sports and leisure products. Our styrenic<br />
foams are used as <strong>in</strong>sulat<strong>in</strong>g materials <strong>in</strong> the<br />
construction <strong>in</strong>dustry and <strong>in</strong> packag<strong>in</strong>g. Our<br />
polyurethanes are extremely versatile: As soft<br />
foams, for example, they improve car seats<br />
and mattresses, and as rigid foams they<br />
<strong>in</strong>crease the energy effciency of refrigerators.<br />
Performance Products lend stability and<br />
color to countless everyday items and<br />
help to improve their application profile.<br />
Our product portfolio <strong>in</strong>cludes vitam<strong>in</strong>s<br />
and food additives as well as <strong>in</strong>gredients<br />
for pharmaceuticals and for hygiene,<br />
home and personal care items. Other<br />
Performance Products improve processes <strong>in</strong><br />
the paper <strong>in</strong>dustry, oil and gas production,<br />
m<strong>in</strong><strong>in</strong>g and water treatment. They can<br />
also enhance the efficiency of fuels and<br />
lubricants, the effectiveness of adhesives<br />
and coat<strong>in</strong>gs, and the stability of plastics.<br />
1<br />
2<br />
P<br />
1<br />
2<br />
3<br />
4<br />
5<br />
FUNCTIONAL SOLUTIONS<br />
AGRICULTURAL SOLUTIONS<br />
OIL & GAS<br />
F<br />
1<br />
2<br />
3<br />
A<br />
In the Functional Solutions segment, we<br />
bundle system solutions and <strong>in</strong>novative<br />
products for specific sectors and<br />
customers, <strong>in</strong> particular for the automotive<br />
and construction <strong>in</strong>dustries. Our portfolio<br />
comprises automotive and <strong>in</strong>dustrial<br />
catalysts, automotive and <strong>in</strong>dustrial<br />
coat<strong>in</strong>gs and concrete admixtures as well as<br />
construction systems such as tile adhesives<br />
and architectural coat<strong>in</strong>gs.<br />
Our crop protection products guard aga<strong>in</strong>st<br />
fungal diseases, <strong>in</strong>sects and weeds and they<br />
<strong>in</strong>crease quality and secure crop yields. Our<br />
research <strong>in</strong> plant biotechnology concentrates<br />
on plants for greater efficiency <strong>in</strong> agriculture,<br />
healthier nutrition and for use as renewable<br />
raw materials.<br />
As the largest German producer of oil and<br />
gas, we focus our exploration and<br />
production on oil- and gas-rich regions<br />
<strong>in</strong> Europe, North Africa, South America,<br />
Russia and the Caspian Sea region.<br />
Together with our Russian partner<br />
Gazprom, we are active <strong>in</strong> the transport,<br />
storage and trad<strong>in</strong>g of natural gas <strong>in</strong><br />
Europe.<br />
1<br />
O<br />
1<br />
2
KEY DATA SEGMENTS<br />
S<br />
CHEMICALS<br />
1 -- Inorganics: 11%<br />
2 -- Petrochemicals: 67%<br />
3 -- Intermediates: 22%<br />
3<br />
1<br />
€11,377<br />
Million<br />
Key data Chemicals<br />
Change<br />
Million € 2010 2009 <strong>in</strong> %<br />
Sales 11,377 7,515 51.4<br />
Income from operations (EBIT) 2,310 735 214.3<br />
2<br />
PLASTICS<br />
Key data Plastics<br />
1 -- Performance<br />
Polymers: 45%<br />
2 -- Polyurethanes: 55%<br />
2<br />
€9,830<br />
Million<br />
1<br />
Change<br />
Million € 2010 2009 <strong>in</strong> %<br />
Sales 9,830 7,128 37.9<br />
Income from operations (EBIT) 1,273 554 129.8<br />
<strong>in</strong><br />
,<br />
PERFORMANCE PRODUCTS<br />
1 -- Dispersions & Pigments: 26%<br />
2 -- Care Chemicals: 22%<br />
3 -- Nutrition & Health: 12%<br />
4 -- Paper Chemicals: 14%<br />
5 -- Performance Chemicals: 26%<br />
5<br />
4<br />
€12,288<br />
Million<br />
3<br />
1<br />
2<br />
Key data Performance Products<br />
Change<br />
Million € 2010 2009 <strong>in</strong> %<br />
Sales 12,288 9,356 31.3<br />
Income from operations (EBIT) 1,345 (150) .<br />
FUNCTIONAL SOLUTIONS<br />
Key data Functional Solutions<br />
1 -- Catalysts: 52%<br />
2 -- Construction<br />
Chemicals: 22%<br />
3 -- Coat<strong>in</strong>gs: 26%<br />
3<br />
2<br />
€9,703<br />
Million<br />
1<br />
Change<br />
Million € 2010 2009 <strong>in</strong> %<br />
Sales 9,703 7,115 36.4<br />
Income from operations (EBIT) 457 107 327.1<br />
AGRICULTURAL SOLUTIONS<br />
Key data Agricultural Solutions<br />
d<br />
1 -- Crop Protection: 100%<br />
€4,033<br />
Million<br />
Change<br />
Million € 2010 2009 <strong>in</strong> %<br />
Sales 4,033 3,646 10.6<br />
Income from operations (EBIT) 749 769 (2.6)<br />
1<br />
OIL & GAS<br />
Key data Oil & Gas<br />
1 -- Exploration &<br />
Production: 35%<br />
2 -- Natural Gas Trad<strong>in</strong>g: 65%<br />
2<br />
€10,791<br />
Million<br />
1<br />
Change<br />
Million € 2010 2009 <strong>in</strong> %<br />
Sales 10,791 11,356 (5.0)<br />
Income from operations (EBIT) 2,334 2,289 2.0
<strong>BASF</strong> IN JAPAN<br />
REPORT 2010<br />
The <strong>BASF</strong> Group<br />
A Message from the President of <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
On Track to 2020<br />
......................................................................................................................................................................2<br />
.....................................................................3<br />
....................................................................................................................................................................4<br />
History of <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
...........................................................................................................................................6<br />
Economy<br />
Environment and Safety<br />
Employees<br />
Innovation Worldwide<br />
<strong>BASF</strong> Innovations and <strong>Japan</strong><br />
<strong>BASF</strong> Br<strong>in</strong>gs <strong>Japan</strong> Innovation to the World<br />
Trust & Responsibility<br />
<strong>BASF</strong> Kids’ Lab<br />
<strong>BASF</strong> <strong>in</strong> the Regions<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong>: Contacts of Ma<strong>in</strong> Subsidiaries and Jo<strong>in</strong>t Ventures<br />
Ten-year Summary<br />
............................................................................................................................................................................................7<br />
...............................................................................................................................................9<br />
....................................................................................................................................................................................12<br />
...................................................................................................................................................17<br />
..............................................................................................................................19<br />
.................................................................................21<br />
...................................................................................................................................................22<br />
.......................................................................................................................................................................23<br />
.......................................................................................................................................................24<br />
...........................................................26<br />
.............................................................................................................................................................28<br />
ABOUT THIS REPORT<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> - Report 2010 is a compact report on <strong>BASF</strong>s economic, environmental and social performance <strong>in</strong> <strong>Japan</strong><br />
<strong>in</strong> 2010. This report is published annually. It also gives an overview of <strong>BASF</strong>s global bus<strong>in</strong>ess operations and f<strong>in</strong>ancial<br />
performance dur<strong>in</strong>g 2010, which is prepared <strong>in</strong> compliance with the requirements of the German Commercial Code as well<br />
as the International F<strong>in</strong>anc<strong>in</strong>g Report<strong>in</strong>g Standards (IFRS). It is a concise report based on current experience, estimates<br />
and projections of the <strong>BASF</strong> management along with currently available <strong>in</strong>formation.
02<br />
The <strong>BASF</strong> Group <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
THE <strong>BASF</strong> GROUP<br />
At a glance<br />
<strong>BASF</strong> is the world’s lead<strong>in</strong>g chemical company – The<br />
Chemical Company. With around 109,000 employees,<br />
six Verbund sites and approximately 390 other<br />
production sites worldwide, we help customers and<br />
partners <strong>in</strong> almost all <strong>in</strong>dustry sectors and countries<br />
around the world to be more successful. Our portfolio<br />
ranges from oil and gas to chemicals, plastics and<br />
specialties such as crop protection products. In 2010,<br />
<strong>BASF</strong> posted sales of €63.9 billion and <strong>in</strong>come from<br />
operations of €7.8 billion.<br />
We operate on a global scale<br />
<strong>BASF</strong> was founded as the Badische Anil<strong>in</strong>- & Soda-Fabrik<br />
<strong>in</strong> 1865 by Friedrich Engelhorn, to produce synthetic textile<br />
dyes from coal tar. Today, the company is a global concern<br />
with subsidiaries <strong>in</strong> more than 80 countries across all regions<br />
of the world. <strong>BASF</strong> is a European Company, a Societas<br />
Europaea (SE), and is headquartered <strong>in</strong> Ludwigshafen,<br />
Germany. The Ludwigshafen site is the largest <strong>in</strong>tegrated<br />
chemical complex <strong>in</strong> the world. It is also the largest<br />
‘Verbund’ site <strong>in</strong> the <strong>BASF</strong> Group, <strong>in</strong>terl<strong>in</strong>k<strong>in</strong>g production<br />
plants <strong>in</strong>telligently to save resources and energy. <strong>BASF</strong><br />
operates five further Verbund sites <strong>in</strong> Belgium, Ch<strong>in</strong>a,<br />
Malaysia and North America.<br />
We create chemistry<br />
As the world’s lead<strong>in</strong>g chemical company, we play a decisive<br />
role <strong>in</strong> shap<strong>in</strong>g the future. We comb<strong>in</strong>e economic success<br />
with social responsibility and environmental protection.<br />
Act<strong>in</strong>g susta<strong>in</strong>ably and striv<strong>in</strong>g cont<strong>in</strong>ually for <strong>in</strong>novation are<br />
therefore core elements of our bus<strong>in</strong>ess activities. S<strong>in</strong>ce<br />
2008, <strong>BASF</strong> has been the only <strong>in</strong>dustrial company worldwide<br />
to regularly publish a comprehensive corporate carbon<br />
footpr<strong>in</strong>t. We contributed our know-how to the development<br />
of a standard for report<strong>in</strong>g greenhouse gas emissions along<br />
the value-add<strong>in</strong>g cha<strong>in</strong> (the Greenhouse Gas Protocol’s<br />
Scope 3 standard). For the first time <strong>in</strong> 2010, our report<strong>in</strong>g<br />
takes <strong>in</strong>to account this draft standard and <strong>in</strong>cludes<br />
emissions from the oil and gas bus<strong>in</strong>ess. We also<br />
recalculated how our climate protection products reduce our<br />
customers’ carbon emissions: A total of 322 million metric<br />
tons of CO 2<br />
emissions are avoided (2008: 287 million metric<br />
tons). We aim to cont<strong>in</strong>uously <strong>in</strong>crease this contribution to<br />
climate protection.<br />
The <strong>in</strong>novative chemistry of <strong>BASF</strong> is the driv<strong>in</strong>g force for<br />
many <strong>in</strong>dustries and provides an important impetus for new<br />
products, technologies and processes. In 2010, <strong>BASF</strong> had<br />
more than 9,600 employees <strong>in</strong> research and development<br />
worldwide and around 1,900 collaborative partnerships with<br />
universities, <strong>in</strong>stitutes, startup companies and <strong>in</strong>dustry<br />
partners. In 2010, we <strong>in</strong>vested nearly €1.5 billion <strong>in</strong> research<br />
and development projects.<br />
Our approach helps us to f<strong>in</strong>d answers to global challenges<br />
such as climate change, resource conservation, health and<br />
nutrition, hous<strong>in</strong>g and mobility. This is our contribution to<br />
a better future for us and for com<strong>in</strong>g generations. As we like<br />
to say, we don’t just create chemicals, we create chemistry.<br />
PUBLIC RECOGNITION FOR<br />
SUSTAINABILITY IN 2010<br />
• <strong>BASF</strong> shares <strong>in</strong>cluded <strong>in</strong> the Dow Jones Susta<strong>in</strong>ability<br />
World Index (DJSI World) for the tenth year <strong>in</strong> succession<br />
• Top rank<strong>in</strong>g <strong>in</strong> the materials sector <strong>in</strong> the Carbon<br />
Disclosure Leadership Index.<br />
• For the third time <strong>in</strong> succession, <strong>BASF</strong> was named to the<br />
Ch<strong>in</strong>a Green Companies Top 100.<br />
RESEARCH AND DEVELOPMENT<br />
In 2010, we <strong>in</strong>vested nearly €1.5 billion <strong>in</strong> research and<br />
development projects.<br />
€1.5 billion
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
A Message from the President of <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
03<br />
A MESSAGE FROM THE PRESIDENT OF<br />
<strong>BASF</strong> IN JAPAN<br />
Dear Stakeholders<br />
2010 was a record year for <strong>BASF</strong>. In <strong>Japan</strong>, we also enjoyed a<br />
robust year with growth fueled by synergies achieved through<br />
acquisition and <strong>in</strong>creased sales <strong>in</strong> exist<strong>in</strong>g bus<strong>in</strong>esses. This was<br />
thanks to the strong support from our bus<strong>in</strong>ess partners, from<br />
our employees and from the community. I would therefore like<br />
to take this opportunity to extend my s<strong>in</strong>cere gratitude and<br />
appreciation.<br />
S<strong>in</strong>ce the 1990s, <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> has cont<strong>in</strong>ued to focus on its<br />
core bus<strong>in</strong>esses to secure its position as a lead<strong>in</strong>g global<br />
chemical company. Over the past five years, six <strong>BASF</strong><br />
companies have come together as <strong>BASF</strong> <strong>Japan</strong> Ltd., most<br />
recently with the <strong>in</strong>tegration <strong>in</strong> March 2010 of Ciba <strong>Japan</strong> K.K.<br />
and Musash<strong>in</strong>o-Geigy Co., Ltd. <strong>in</strong> October 2010.<br />
Under <strong>BASF</strong>’s <strong>Asia</strong> <strong>Pacific</strong> Strategy 2020, the company has<br />
established customer target groups and <strong>in</strong>dustry target groups,<br />
through which we aim to provide each customer company or<br />
<strong>in</strong>dustry with the full range of <strong>BASF</strong> solutions and expertise from<br />
a s<strong>in</strong>gle po<strong>in</strong>t of contact. In l<strong>in</strong>e with this strategy, <strong>in</strong> 2010 <strong>BASF</strong><br />
<strong>in</strong> <strong>Japan</strong> reorganized its structure to better serve customer<br />
<strong>in</strong>dustries <strong>in</strong>clud<strong>in</strong>g automotive, construction, pa<strong>in</strong>t & coat<strong>in</strong>gs,<br />
pharmaceutical, and packag<strong>in</strong>g.<br />
2010 was a milestone year for another reason: the Nobel Prize <strong>in</strong><br />
Chemistry was awarded to Akira Suzuki and Ei-ichi Negishi.<br />
Both gentlemen were recognized for their achievements <strong>in</strong><br />
palladium-catalyzed cross coupl<strong>in</strong>gs <strong>in</strong> organic synthesis. <strong>BASF</strong><br />
has a keen <strong>in</strong>terest and strong relationship with this field. For<br />
example, Boscalid (<strong>BASF</strong> product name: Cantus), a fungicide<br />
Tomoyoshi Naruo<br />
Representative Director & President<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd.<br />
applied to various types of vegetables, beans and fruits, was<br />
developed us<strong>in</strong>g Dr. Suzuki’s organic synthesis reaction. This<br />
award from the Nobel Foundation has aga<strong>in</strong> brought firmly to<br />
the attention of the world the value both of chemistry and<br />
<strong>Japan</strong>’s capabilities and is an event of immense joy and pride.<br />
As the world’s lead<strong>in</strong>g chemical company, <strong>BASF</strong> is committed<br />
to secur<strong>in</strong>g a prom<strong>in</strong>ent position <strong>in</strong> the fields of <strong>in</strong>novation and<br />
development. We are mak<strong>in</strong>g every effort to ensure that we are<br />
provid<strong>in</strong>g the most advanced solutions and high value-added<br />
products.<br />
WE EARN A PREMIUM<br />
ON OUR COST OF CAPITAL<br />
The prerequisite for long-term success is earn<strong>in</strong>g a<br />
premium on our cost of capital. Earn<strong>in</strong>gs before <strong>in</strong>terest<br />
and taxes (EBIT) after cost of capital is our key<br />
performance and management <strong>in</strong>dicator.<br />
WE HELP OUR CUSTOMERS<br />
TO BE MORE SUCCESSFUL<br />
We want to recognize what our customers will need<br />
tomorrow. As a reliable partner, we work with customers<br />
to develop solutions that will meet their <strong>in</strong>dividual needs<br />
and strengthen their competitiveness. To do this, we<br />
operate where our customers are - <strong>in</strong> all the world’s<br />
important markets.
04<br />
On Track to 2020 <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
ON TRACK TO 2020<br />
An <strong>in</strong>terview with Dr. Mart<strong>in</strong> Brudermüller,<br />
Vice Chairman of the Board of Executive Directors, <strong>BASF</strong> SE, responsible for <strong>Asia</strong> <strong>Pacific</strong><br />
How did <strong>BASF</strong> perform <strong>in</strong> <strong>Asia</strong> <strong>Pacific</strong> last year<br />
I am very proud that the <strong>Asia</strong> <strong>Pacific</strong> region was a very<br />
strong contributor to our record year for <strong>BASF</strong> <strong>in</strong> 2010! For<br />
the first time, we broke both the €10 billion sales and the €1<br />
billion EBIT mark <strong>in</strong> the region.<br />
Corporate Leadership, the upgrad<strong>in</strong>g of our career<br />
development program, and the launch of a formalized<br />
mentorship program. In particular we aim to further<br />
develop <strong>in</strong>ternational career opportunities for our top local<br />
employees.<br />
What progress has <strong>BASF</strong> made towards its <strong>Asia</strong> <strong>Pacific</strong><br />
Strategy 2020 goals<br />
We are mak<strong>in</strong>g excellent progress.<br />
• With our Industry Target Groups and Customer Target<br />
Groups, we have already identified around EUR 600<br />
million <strong>in</strong> additional sales potential by 2012.<br />
• To ensure we can create <strong>in</strong>novations for <strong>Asia</strong>, from <strong>Asia</strong>,<br />
around 500 <strong>BASF</strong> employees at 12 sites <strong>in</strong> the region now<br />
work <strong>in</strong> research and development. In particular, 2010<br />
marked the ground-break<strong>in</strong>g of our first Innovation<br />
Campus <strong>Asia</strong> <strong>Pacific</strong>, which will be located <strong>in</strong> Shanghai.<br />
• To help us expand our local production, we have <strong>in</strong>vested<br />
€2.4 billion <strong>in</strong> facilities <strong>in</strong> <strong>Asia</strong> <strong>Pacific</strong> over the past five<br />
years. And we have announced major new <strong>in</strong>vestments<br />
across the region.<br />
• We have already achieved € 90 million <strong>in</strong> annual sav<strong>in</strong>gs<br />
through our <strong>Asia</strong> <strong>Pacific</strong> Site Optimization project.<br />
What is the role of <strong>Japan</strong> <strong>in</strong> <strong>BASF</strong> <strong>Asia</strong> <strong>Pacific</strong> Strategy<br />
2020<br />
Many of our customers <strong>in</strong> <strong>Japan</strong> are global leaders <strong>in</strong> their<br />
<strong>in</strong>dustries. As they develop their overseas bus<strong>in</strong>esses, we<br />
want to be their preferred s<strong>in</strong>gle supplier, offer<strong>in</strong>g our<br />
unique technological know-how with a truly global<br />
presence. This also allows us to open up new bus<strong>in</strong>ess<br />
opportunities between <strong>BASF</strong> Group companies and<br />
<strong>Japan</strong>ese companies <strong>in</strong> other parts of the world as they<br />
pursue their global activities. Through our position as a<br />
chemical technology provider, we strive to become a core<br />
component <strong>in</strong> the global strategies of <strong>Japan</strong>’s corporate<br />
sector. Be<strong>in</strong>g a source of <strong>in</strong>novation across many<br />
<strong>in</strong>dustries will allow our <strong>Japan</strong> team to contribute<br />
substantially to <strong>in</strong>creased regional earn<strong>in</strong>gs through to<br />
2020.<br />
How does <strong>BASF</strong> develop its employees to meet the<br />
2020 goals<br />
Employees are at the heart of our strategy. Dur<strong>in</strong>g the past<br />
year we have launched a package of career development<br />
<strong>in</strong>itiatives to ensure we can both recruit and reta<strong>in</strong> the best<br />
team <strong>in</strong> <strong>in</strong>dustry. These <strong>in</strong>itiatives <strong>in</strong>clude the<br />
establishment of the <strong>BASF</strong> <strong>Asia</strong> <strong>Pacific</strong> Institute for<br />
WE FORM THE BEST TEAM IN INDUSTRY<br />
We want to recruit, support and reta<strong>in</strong> the best<br />
employees. That is why we <strong>in</strong>vest <strong>in</strong> our employees’<br />
development and help them balance work and family<br />
life. With our Diversity + Inclusion <strong>in</strong>itiative, we promote<br />
teams that create value with their different backgrounds<br />
and experiences.<br />
WE ENSURE SUSTAINABLE<br />
DEVELOPMENT<br />
For us, susta<strong>in</strong>able development means comb<strong>in</strong><strong>in</strong>g<br />
economic success with environmental and social<br />
responsibility. We have anchored susta<strong>in</strong>ability <strong>in</strong> our<br />
corporate strategy and organization: With susta<strong>in</strong>able<br />
products and services, we create competitive<br />
advantages for both <strong>BASF</strong> and our customers.
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
On Track to 2020<br />
05<br />
<strong>BASF</strong> <strong>Asia</strong> <strong>Pacific</strong> Strategy 2020<br />
Through 2020, <strong>BASF</strong> aims to grow on average two<br />
percentage po<strong>in</strong>ts faster than the <strong>Asia</strong> <strong>Pacific</strong> chemical<br />
market each year. To meet this ambitious goal, which would<br />
double regional sales by 2020, the company has developed<br />
the <strong>BASF</strong> <strong>Asia</strong> <strong>Pacific</strong> Strategy 2020. This strategy is based<br />
on a comb<strong>in</strong>ation of growth and new bus<strong>in</strong>ess <strong>in</strong>itiatives.<br />
In <strong>Asia</strong> <strong>Pacific</strong>, <strong>BASF</strong> will organize its sales efforts around<br />
key <strong>in</strong>dustries <strong>in</strong> order to grow faster than the market. The<br />
company has established an <strong>in</strong>itial set of <strong>in</strong>dustry target<br />
groups where it <strong>in</strong>tends to become a preferred supplier,<br />
<strong>in</strong>clud<strong>in</strong>g the automotive, construction, packag<strong>in</strong>g, pa<strong>in</strong>ts<br />
and coat<strong>in</strong>gs, and pharmaceuticals <strong>in</strong>dustries.<br />
We will <strong>in</strong>crease our headcount by at least 5,000 from<br />
approximately 15,000 which were employed at the end of<br />
December 2009. At the same time, we will double the<br />
number of employees <strong>in</strong> research and development<br />
between 2009-2020, especially at our two major R&D<br />
clusters <strong>in</strong> Ch<strong>in</strong>a and India. In our two challeng<strong>in</strong>g growth<br />
markets, Ch<strong>in</strong>a and India, we have set up dedicated<br />
recruitment centers to help us hire the talents we need.<br />
<strong>BASF</strong> plans to generate 70% of regional sales from local<br />
production, <strong>in</strong>vest<strong>in</strong>g €2.3 billion between 2011-2015.<br />
Simultaneously, we aim to create further efficiency<br />
improvements that are expected to save €150 million<br />
annually by 2012, for example, by debottleneck<strong>in</strong>g<br />
production and by exploit<strong>in</strong>g technical synergies.<br />
Mart<strong>in</strong> Brudermüller<br />
Vice Chairman of the Board of Executive Directors of <strong>BASF</strong> SE,<br />
responsible for <strong>Asia</strong> Pacifi c<br />
<strong>BASF</strong> IN ASIA PACIFIC 2010<br />
Sales<br />
(by location of customer)<br />
EBIT<br />
Investment Plan<br />
2011 – 2015<br />
Employees 2010<br />
€12.5<br />
€1.3<br />
€2.3<br />
billion billion billion<br />
16,000
06<br />
History of <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
HISTORY OF <strong>BASF</strong> IN JAPAN<br />
1865 Badische Anil<strong>in</strong> - und Soda - Fabrik Aktiengesellschaft (<strong>BASF</strong> AG) is founded <strong>in</strong><br />
Ludwigshafen, Germany.<br />
1888 <strong>BASF</strong> is <strong>in</strong>troduced to the <strong>Japan</strong>ese market through H. Ahrens & Co.<br />
1898 Yamada Shoten and Shibata Shoten import the first <strong>BASF</strong> dye, Indigo Pure,<br />
<strong>in</strong>to <strong>Japan</strong>.<br />
1927 First technology licens<strong>in</strong>g <strong>in</strong> <strong>Japan</strong>. <strong>BASF</strong> provides methyl alcohol technology to<br />
Mitsubishi Gas Chemical.<br />
1949 Yamada Shoten and Shibata Shoten establish Color Chemie Trad<strong>in</strong>g Co., Ltd.<br />
(precursor of current <strong>BASF</strong> <strong>Japan</strong>) <strong>in</strong> Tokyo.<br />
1951 Osaka sales office and laboratory established.<br />
<strong>BASF</strong> transfers exclusive distributor rights from H. Ahrens to Color Chemie Trad<strong>in</strong>g.<br />
1953 <strong>BASF</strong> AG makes equity <strong>in</strong>vestment <strong>in</strong> Color Chemie Trad<strong>in</strong>g.<br />
1956 Osaka Takakura plant and warehouse completed; <strong>BASF</strong> starts production <strong>in</strong> <strong>Japan</strong>.<br />
1962 Yuka Badische Co., Ltd. (renamed Mitsubishi Chemical <strong>BASF</strong> Co., Ltd. <strong>in</strong> 1994)<br />
established as <strong>BASF</strong>’s first jo<strong>in</strong>t venture <strong>in</strong> <strong>Japan</strong>, for the production of expandable<br />
polystyrene (Styropor ® ).<br />
1965 Color Chemie Trad<strong>in</strong>g becomes <strong>BASF</strong> Dyes & Chemicals Co., Ltd.<br />
1969 Follow<strong>in</strong>g <strong>BASF</strong>’s acquisition of German Elastogran Group, Polyurethane Chemical Co.,<br />
Ltd. (renamed <strong>BASF</strong> INOAC Polyurethanes Ltd.) becomes a <strong>BASF</strong> subsidiary.<br />
1974 <strong>BASF</strong> Dyes & Chemicals Co., Ltd. renamed <strong>BASF</strong> <strong>Japan</strong> Ltd.<br />
Mitsui Badische Dyes Ltd. (renamed Mitsui <strong>BASF</strong> Dyes Ltd.) established as a jo<strong>in</strong>t<br />
venture to produce dyestuffs for synthetic fibers.<br />
1975 <strong>BASF</strong> purchases pharmaceutical manufacturer Knoll AG; Knoll <strong>Japan</strong> K.K. jo<strong>in</strong>s the<br />
<strong>BASF</strong> Group.<br />
1985 Follow<strong>in</strong>g <strong>BASF</strong>’s acquisition of Inmont Corporation (U.S.A.), Nippon R<strong>in</strong>shed-Mason<br />
(renamed Nippon R-M Co., Ltd.), a producer of automotive ref<strong>in</strong>ish<strong>in</strong>g pa<strong>in</strong>ts,<br />
becomes a <strong>BASF</strong> subsidiary.<br />
<strong>BASF</strong> <strong>Japan</strong> acquires its own production site <strong>in</strong> Yokkaichi, Mie Prefecture.<br />
1987 Takeda Badische Urethane Industries, Ltd. (renamed <strong>BASF</strong> Polyurethane Elastomers<br />
Ltd.) established to expand polyurethane bus<strong>in</strong>ess.<br />
1988 Yokkaichi Works starts up. <strong>BASF</strong> starts production of auxiliaries for paper, textile and<br />
leather <strong>in</strong>dustries.<br />
1989 Thermoplastic polyurethane production starts at Yokkaichi.<br />
<strong>BASF</strong> Eng<strong>in</strong>eer<strong>in</strong>g Plastics Co., Ltd. (<strong>in</strong>tegrated <strong>in</strong>to <strong>BASF</strong> <strong>Japan</strong> Ltd.) established.<br />
1991 <strong>BASF</strong> Nichiyu Coat<strong>in</strong>g R&D Co., Ltd., a jo<strong>in</strong>t venture between <strong>BASF</strong> Coat<strong>in</strong>gs AG and<br />
NOF Corporation, established for automotive OEM pa<strong>in</strong>ts.<br />
1992 Production of THF and Poly THF ® starts at Yokkaichi.<br />
Yokkaichi Technical Center established.<br />
1995 Idemitsu <strong>BASF</strong> Co., Ltd. (renamed <strong>BASF</strong> Idemitsu Co., Ltd.) established for<br />
1.4-butanediol production.<br />
Nisso <strong>BASF</strong> Agro Co., Ltd. established to produce and market herbicides.<br />
1996 <strong>BASF</strong> acquires Hokuriku Seiyaku Co., Ltd.<br />
1998 Yokkaichi starts production of polyv<strong>in</strong>yl pyrrolidone (PVP).<br />
1999 As part of restructur<strong>in</strong>g, Polyurethane Chemical Co., Ltd. renamed <strong>BASF</strong> INOAC<br />
Polyurethanes Ltd.<br />
Mitsubishi Chemical <strong>BASF</strong> Co., Ltd. divided <strong>in</strong>to <strong>BASF</strong> Dispersions Co., Ltd. and<br />
Mitsubishi Chemical Foam Plastic Corp.<br />
<strong>BASF</strong> acquires Takeda Kagaku Shiryo Co., Ltd.<br />
2000 Yokkaichi starts production of N-Methyl Pyrrolidone Ultra Pure Grade (NMP-UP).<br />
<strong>BASF</strong> Coat<strong>in</strong>gs AG and NOF Corporation establish <strong>BASF</strong> NOF Coat<strong>in</strong>gs Co., Ltd., a jo<strong>in</strong>t<br />
venture for coat<strong>in</strong>gs. Nichiyu <strong>BASF</strong> Coat<strong>in</strong>g<br />
R&D and Nippon R-M are <strong>in</strong>tegrated <strong>in</strong>to the new company.<br />
<strong>BASF</strong>’s dyestuff bus<strong>in</strong>ess for fibers consolidated <strong>in</strong> DyStar; <strong>BASF</strong>’s shares <strong>in</strong> Mitsui <strong>BASF</strong><br />
Dyes Ltd. are transferred to DyStar <strong>Japan</strong> Ltd.<br />
With <strong>BASF</strong>‘s acquisition of crop protection bus<strong>in</strong>ess of American Home Products Corporation,<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd. acquired all shares <strong>in</strong> Cyanamid (<strong>Japan</strong>) Limited (<strong>in</strong> 2001 renamed<br />
<strong>BASF</strong> Agro, Ltd. ).<br />
2001 <strong>BASF</strong> Takeda Vitam<strong>in</strong>s Ltd. established, <strong>in</strong> conjunction with <strong>BASF</strong>’s acquisition of<br />
global vitam<strong>in</strong> bus<strong>in</strong>ess from Takeda Chemical Industries Ltd.<br />
With <strong>BASF</strong>’s acquisition of American Cyanamid Co. <strong>in</strong> 2000, Cyanamid (<strong>Japan</strong>) Ltd.<br />
and <strong>BASF</strong> <strong>Japan</strong> Ltd.’s agrochemical bus<strong>in</strong>ess merge to become <strong>BASF</strong> Agro Ltd.<br />
Knoll <strong>Japan</strong> K.K.and Hokuriku Seiyaku Co., Ltd. are transferred to Abbott Laboratories<br />
when <strong>BASF</strong> sells its pharmaceutical bus<strong>in</strong>ess to Abbott.<br />
2002 <strong>BASF</strong> Polyurethane Elastomers Ltd. <strong>in</strong>tegrates with <strong>BASF</strong> <strong>Japan</strong> Ltd.’s Polymers Division.<br />
2003 <strong>BASF</strong> Dispersions Co., Ltd. <strong>in</strong>tegrates with <strong>BASF</strong> <strong>Japan</strong> Ltd.’s Specialtles Division.<br />
2005 <strong>BASF</strong> acquires full ownership of <strong>BASF</strong> NOF Coat<strong>in</strong>gs Co., Ltd., and established <strong>BASF</strong><br />
Coat<strong>in</strong>gs <strong>Japan</strong> Ltd.<br />
2006 <strong>BASF</strong> acquires Engelhard.<br />
<strong>BASF</strong> acquires Degussa Construction Chemicals and Johnson Polymer.<br />
2007 With merger of three major construction chemicals companies <strong>BASF</strong> Pozzolith Ltd. is<br />
formed.<br />
2009 <strong>BASF</strong> acquires Ciba.<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd. merges with <strong>BASF</strong> Agro, Ltd.<br />
2010 <strong>BASF</strong> <strong>Japan</strong> Ltd. merges with Ciba <strong>Japan</strong> K.K.<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd. merges with Musash<strong>in</strong>o-Geigy Co., Ltd.<br />
<strong>BASF</strong> acquires Cognis <strong>Japan</strong>.<br />
<strong>BASF</strong> IN JAPAN<br />
S<strong>in</strong>ce enter<strong>in</strong>g the <strong>Japan</strong>ese market more than 120<br />
years ago, <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> has supported its customers<br />
<strong>in</strong> <strong>Japan</strong> through the provision of advanced solutions<br />
and high value-added products.<br />
<strong>BASF</strong> Headquarters <strong>in</strong> <strong>Japan</strong>
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
Economy<br />
07<br />
ECONOMY<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> consists of eight companies with <strong>BASF</strong><br />
<strong>Japan</strong> Ltd at its core. Ma<strong>in</strong> production sites are <strong>in</strong><br />
Yokkaichi, (thermoplastic polyurethanes [TPU] and polymer<br />
dispersions), Chigasaki, (admixtures for concrete,<br />
construction chemicals) and Totsuka (coat<strong>in</strong>gs). The<br />
Amagasaki R&D Center, located close to many of the<br />
electronics technology leaders <strong>in</strong> <strong>Japan</strong>, focuses on<br />
<strong>in</strong>novative solutions for LC display, energy management<br />
and microelectronics.<br />
Today, <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> has positioned five <strong>in</strong>dustries<br />
<strong>in</strong>clud<strong>in</strong>g automotive, pharmaceutical, pa<strong>in</strong>t and coat<strong>in</strong>g<br />
materials, packag<strong>in</strong>g materials, and construction as fields<br />
with particular growth potential and is strengthen<strong>in</strong>g its<br />
sales activities <strong>in</strong> these fields. By target<strong>in</strong>g these <strong>in</strong>dustries<br />
and the bus<strong>in</strong>ess segments of each customer, this strategy<br />
enables the customers to access and use a broad range of<br />
<strong>BASF</strong> solutions through a s<strong>in</strong>gle po<strong>in</strong>t of contact.<br />
<strong>BASF</strong> sales to customers <strong>in</strong> <strong>Japan</strong> (Hundreds of million ¥)<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
1,690<br />
1,160<br />
2,450<br />
2,360<br />
2006 2007 2008<br />
<strong>BASF</strong> sales to customers <strong>in</strong> <strong>Japan</strong> (million €)<br />
1,519 1,548<br />
1,570<br />
2009<br />
- Approximate fi gures converted<br />
* €1,69 billion to Yen <strong>in</strong> 2010 (€1 = ¥116, yearly average rate)<br />
(Both fi gures <strong>in</strong>clude sales of <strong>BASF</strong> <strong>in</strong> foreign countries to customers <strong>in</strong> <strong>Japan</strong>.)<br />
1,207<br />
1,960<br />
2010<br />
1,688<br />
The year 2010 was spurred on by the synergy created<br />
0<br />
2006 2007 2008<br />
2009<br />
2010<br />
primarily through acquisitions and by the <strong>in</strong>crease <strong>in</strong> sales<br />
<strong>in</strong> exist<strong>in</strong>g bus<strong>in</strong>ess areas such as automotive plastics, and<br />
as a result, 2010 was a very strong year with sales <strong>in</strong> <strong>Japan</strong><br />
total<strong>in</strong>g 196 billion yen (€ 1.69 billion). The company<br />
employs 1,740 people <strong>in</strong> <strong>Japan</strong>.<br />
<strong>BASF</strong> SALES TO CUSTOMERS IN JAPAN 2010<br />
¥196 billion €1.69 billion
08<br />
Economy <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong>: Local Production and R&D<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd./Koriyama Plant<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd./Isohara Plant<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd./Kitatone Plant<br />
N.E. Chemcat/Tsukuba Plant<br />
N.E. Chemcat/R&D (Tsukuba Plant)<br />
<strong>BASF</strong> Idemitsu Co., Ltd./Chiba Plant<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd./Yokkaichi Rokuromi Plant<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd./Yokkaichi TPU Plant<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd./Amagasaki R&D Center<br />
<strong>BASF</strong> Coat<strong>in</strong>gs <strong>Japan</strong> Ltd./Totsuka Plant<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd./Kawasaki Technical Lab<br />
<strong>BASF</strong> Pozzolith Ltd./Productions (Chigasaki)<br />
<strong>BASF</strong> Pozzolith Ltd./Development Center<br />
(Chigasaki)<br />
N.E. Chemcat/Numazu Plant<br />
N.E. Chemcat/R&D (Numazu Plant)<br />
<strong>BASF</strong> INOAC Polyurethanes/<br />
Head Office and Sh<strong>in</strong>shiro Plant<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd./Agricultural Station (Tahara)<br />
Production Sites<br />
R&D/Technical Center<br />
Admixture Plants of <strong>BASF</strong> Pozzolith<br />
*As of October 1, 2011<br />
R&D CENTER<br />
Currently <strong>BASF</strong>’s R&D Center <strong>in</strong> <strong>Japan</strong> focuses on<br />
energy management as well as flat panel display<br />
technology. Be<strong>in</strong>g located close to the market with<br />
technology-edge, Amagasaki R&D Center has a great<br />
advantage to work with <strong>Japan</strong>ese customers and to<br />
contribute to further advance the state-of-art technology<br />
<strong>in</strong> global electronics <strong>in</strong>dustry.<br />
Amagasaki R&D Center
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
Environment and Safety<br />
09<br />
ENVIRONMENT AND SAFETY<br />
<strong>BASF</strong> bases all of its activities on the pr<strong>in</strong>ciples of<br />
susta<strong>in</strong>able development. This means we comb<strong>in</strong>e<br />
economic success with environmental protection and<br />
social responsibility. Thus, we contribute to the quality<br />
of life of the next generation. Susta<strong>in</strong>able development<br />
is <strong>in</strong>corporated <strong>in</strong>to the company’s Values and<br />
Pr<strong>in</strong>ciples.<br />
Protect<strong>in</strong>g the climate together<br />
Climate protection is an issue that affects us all. That is<br />
why we are committed to ambitious global climate<br />
protection. We help by offer<strong>in</strong>g products and system<br />
solutions that conserve resources, and we are aim<strong>in</strong>g to<br />
cont<strong>in</strong>uously reduce emissions along our value-add<strong>in</strong>g<br />
cha<strong>in</strong>.<br />
Emissions to air<br />
Emissions were <strong>in</strong>fluenced by the closure of plants at the<br />
company’s Yokkaichi site as well as by pollution reduction<br />
measures implemented at each site, along with the<br />
<strong>in</strong>crease <strong>in</strong> production from the <strong>in</strong>clusion of Ciba sites <strong>in</strong><br />
2009. Greenhouse gas emissions and air pollutants<br />
amounted to 61,698 tons and 39 tons, respectively, <strong>in</strong> 2010.<br />
On balance, greenhouse gas emissions rose slightly while<br />
air pollutants were reduced.<br />
Air pollutants (metric tons)<br />
80<br />
60<br />
57<br />
55 55<br />
51<br />
39<br />
40<br />
Trends <strong>in</strong> <strong>Japan</strong> <strong>in</strong> 2010<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> saw reduced emissions due largely to the<br />
closure of two plants at <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong>’s Yokkaichi<br />
operations (a chemical <strong>in</strong>termediate plant <strong>in</strong> 2005 and a<br />
processed chemicals plant <strong>in</strong> 2006), production<br />
adjustments and measures to curtail the environmental<br />
impact from each site. However, follow<strong>in</strong>g the <strong>in</strong>tegration<br />
of data from sites of the legacy Ciba group <strong>in</strong> 2009 for a<br />
full year, all <strong>in</strong>dicators were affected <strong>in</strong> 2010.<br />
20<br />
0<br />
2006 2007<br />
2008<br />
2009<br />
CO, NOx, NMVOC, SOx, dust, NH3 / other <strong>in</strong>organics<br />
Greenhouse gas emissions (metric tons of CO2 equivalents)<br />
80,000 72,864<br />
60,772<br />
60,000<br />
52,681 50,120<br />
40,000<br />
2010<br />
61,698<br />
Environmental Data: The follow<strong>in</strong>g graphs have been prepared us<strong>in</strong>g aggregate environmental<br />
data from <strong>BASF</strong>’s pr<strong>in</strong>cipal manufactur<strong>in</strong>g operations <strong>in</strong> <strong>Japan</strong>.<br />
20,000<br />
0<br />
2006 2007<br />
2008<br />
2009<br />
2010<br />
CO2, N2O, CH4, HFC, PFC, SF6<br />
NEW GLOBAL CORPORATE CARBON FOOTPRINT<br />
S<strong>in</strong>ce 2008, <strong>BASF</strong> has been the only <strong>in</strong>dustrial company worldwide to regularly present a comprehensive corporate carbon<br />
footpr<strong>in</strong>t. In 2010, we recalculated the reduction <strong>in</strong> emissions from the use of our climate protection products as well as<br />
the record<strong>in</strong>g of emissions along the value-add<strong>in</strong>g cha<strong>in</strong>. For the first time, we <strong>in</strong>cluded emissions from the oil and gas<br />
bus<strong>in</strong>ess and took <strong>in</strong>to consideration emissions that arise when our customers burn oil and gas produced by <strong>BASF</strong>’s<br />
subsidiary W<strong>in</strong>tershall. Our calculations take <strong>in</strong>to account the draft of the new Greenhouse Gas Protocol standard. The<br />
standard was developed under the leadership of the World Bus<strong>in</strong>ess Council for Susta<strong>in</strong>able Development and the World<br />
Resource Institute, which we participated <strong>in</strong>.
10<br />
Environment and Safety <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
Emissions to water<br />
While both chemical oxygen demand and the volume of<br />
nitrogen emissions <strong>in</strong>creased due largely to the upsw<strong>in</strong>g <strong>in</strong><br />
production follow<strong>in</strong>g <strong>in</strong>tegration with the legacy Ciba group <strong>in</strong><br />
2009, <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> was successful <strong>in</strong> curtail<strong>in</strong>g emissions<br />
<strong>in</strong> 2010. In specific terms, chemical oxygen demand and the<br />
volume of nitrogen emissions were reduced to five tons and<br />
one ton, respectively. In addition, heavy metal content <strong>in</strong><br />
discharged water was below the detection limit from 2006 to<br />
2010. Data refer to the aggregate total of the company’s own<br />
treatment facilities as well as treatment facilities operated<br />
jo<strong>in</strong>tly with other companies.<br />
Waste<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> works diligently to conta<strong>in</strong> the level of<br />
waste disposal by actively promot<strong>in</strong>g the recycl<strong>in</strong>g of<br />
waste. The dramatic drop <strong>in</strong> the group’s recycl<strong>in</strong>g rate <strong>in</strong><br />
2008 reflected such factors as the disposal of recovered<br />
products and periodic ma<strong>in</strong>tenance of plants. Due ma<strong>in</strong>ly<br />
to the <strong>in</strong>crease <strong>in</strong> production sites from 2009, <strong>BASF</strong> <strong>in</strong><br />
<strong>Japan</strong>’s overall operations recorded an <strong>in</strong>crease to 13,886<br />
tons <strong>in</strong> the amount of waste. However, the volume and rate<br />
of waste recycl<strong>in</strong>g has <strong>in</strong>creased to 5,440 tons and 39%,<br />
respectively, <strong>in</strong>dicat<strong>in</strong>g an upward trend.<br />
Chemical oxygen demand (metric tons)<br />
Waste (total) (metric tons)<br />
25<br />
20<br />
25.5<br />
18<br />
16,000<br />
12,000<br />
13,231<br />
14,191<br />
15,853<br />
13,027<br />
13,886<br />
15<br />
13<br />
8,000<br />
10<br />
4,000<br />
5<br />
2<br />
5<br />
0<br />
2006 2007 2008<br />
2009<br />
2010<br />
0<br />
2006 2007<br />
2008<br />
2009 2010<br />
Nitrogen (metric tons)<br />
Recycl<strong>in</strong>g of waste recovery (total) (metric tons) (Left scale)<br />
Recycl<strong>in</strong>g of waste (recovery rate) (%) (Right scale)<br />
8,000<br />
60<br />
4<br />
3<br />
4.0<br />
6,000<br />
4,000<br />
5,557<br />
42<br />
5,127<br />
36<br />
4,027<br />
4,304<br />
33<br />
5,440<br />
39<br />
50<br />
40<br />
2<br />
1<br />
0.4 0.4 0.3<br />
1.0<br />
2,000<br />
0<br />
25<br />
2006 2007 2008<br />
2009 2010<br />
30<br />
20<br />
0<br />
2006 2007<br />
2008<br />
2009 2010<br />
<strong>BASF</strong> Group’s corporate carbon footpr<strong>in</strong>t 2010<br />
We reduce emissions along the value-add<strong>in</strong>g cha<strong>in</strong><br />
Significant greenhouse gas emissions<br />
(<strong>in</strong> million metric tons of CO 2<br />
e per year) 1<br />
Our products for climate protection<br />
Emissions avoided by our customers (<strong>in</strong> million metric tons of CO 2<br />
e per year) 1<br />
Raw materials: 43<br />
<strong>BASF</strong> production: 25<br />
Use of <strong>BASF</strong> end products: 56<br />
Disposal: 29<br />
Transport: 4<br />
1,398<br />
With use of<br />
<strong>BASF</strong> products<br />
1,720<br />
Without use of<br />
<strong>BASF</strong> products<br />
322 million metric tons<br />
of CO 2<br />
are avoided<br />
1. CO 2<br />
e is the abbreviation for CO 2<br />
equivalent. This unit enables comparison of various greenhouse gases such as nitrous oxide, methane, carbon dioxide, etc.
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
Environment and Safety<br />
11<br />
Water supply<br />
Water supply <strong>in</strong>creased substantially <strong>in</strong> 2010 due to the<br />
<strong>in</strong>clusion for the first time of data from the legacy Ciba site,<br />
which uses substantial amounts of water for cool<strong>in</strong>g<br />
purpose. In 2010, <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> used 4,235,320m 3 of<br />
water. Of those 4,235,320m 3 , 261,819m 3 came <strong>in</strong>to contact<br />
with products, for example, when used for wash<strong>in</strong>g or as a<br />
solvent or a reaction medium. This number is reported as<br />
water used for production. 11,095,392m 3 of water have<br />
been used for cool<strong>in</strong>g. This number reflects the additional<br />
benefit that we perceive from the recirculation of water <strong>in</strong><br />
the cool<strong>in</strong>g process. Thus, the amount of cool<strong>in</strong>g water is<br />
substantially higher than our overall water supply.<br />
Energy<br />
Total steam and electricity consumption <strong>in</strong>creased across<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> as a whole <strong>in</strong> 2010 total<strong>in</strong>g 182,204 tons and<br />
40,602mWh, respectively, due ma<strong>in</strong>ly to the addition of<br />
legacy Ciba group production sites. In 2010, fuel consumption<br />
decreased amount<strong>in</strong>g to 12,363mWh.<br />
Steam consumption (total) (metric tons)<br />
300,000<br />
200,000<br />
182,204<br />
161,549<br />
148,803<br />
118,479 117,950<br />
100,000<br />
0<br />
2006 2007 2008 2009<br />
2010<br />
Water supply (total) (cubic meters)<br />
Electricity consumption (total) (mWh)<br />
6,000,000<br />
60,000<br />
4,000,000<br />
2,738,461<br />
4,235,320<br />
40,000<br />
42,118<br />
37,419<br />
36,903<br />
38,345<br />
40,602<br />
2,000,000<br />
636,388<br />
582,265 528,975<br />
20,000<br />
0<br />
2006 2007 2008<br />
2009<br />
2010<br />
0<br />
2006 2007 2008<br />
2009<br />
2010<br />
Water used for production (total) (cubic meters)<br />
Fuel consumption (mWh)<br />
300,000<br />
200,000<br />
208,252<br />
278,087 262,660<br />
248,403<br />
261,819<br />
60,000<br />
40,000<br />
49,332<br />
45,150<br />
100,000<br />
20,000<br />
19,559 17,213<br />
12,363<br />
0<br />
2006 2007 2008<br />
2009<br />
2010<br />
0<br />
2006 2007 2008<br />
2009<br />
2010<br />
OCCUPATIONAL SAFETY<br />
Lost Time Injury rate per million work<strong>in</strong>g hours<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> has ma<strong>in</strong>ta<strong>in</strong>ed the relatively low rate of<br />
0.0 to 0.5 occupational accidents and <strong>in</strong>juries for every<br />
one million hours worked by full-time employees.<br />
Regrettably, there was a fatal accident <strong>in</strong>volv<strong>in</strong>g a<br />
contractor <strong>in</strong> 2007.<br />
Employees<br />
2.4<br />
1.8<br />
1.2<br />
0.6<br />
0<br />
1.7<br />
Contractors<br />
2.3<br />
0.5<br />
0.3 0.3<br />
0.0<br />
0.0 0.0<br />
2006 2007<br />
2008<br />
2009<br />
0.8<br />
0.0<br />
2010
12<br />
Employees <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
EMPLOYEES<br />
It is one of <strong>BASF</strong>‘s four strategic guidel<strong>in</strong>es to “Form the<br />
best team <strong>in</strong> the <strong>in</strong>dustry”. To fulfill this vision, <strong>BASF</strong> <strong>in</strong><br />
<strong>Japan</strong> applies a compensation system based on concrete<br />
results that have been clarified through dialogue between<br />
employees and their managers. At the same time, the<br />
company provides human resource development and<br />
tra<strong>in</strong><strong>in</strong>g opportunities that nurture a highly talented and<br />
professional workforce. Furthermore, <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> is<br />
engag<strong>in</strong>g <strong>in</strong> a broad spectrum of recruitment activities to<br />
build a diverse and <strong>in</strong>clusive workforce – irrespective of<br />
nationality, gender and cultural background – that is<br />
capable of excell<strong>in</strong>g across global markets.<br />
the <strong>Asia</strong> <strong>Pacific</strong> region. Degrees of achievement <strong>in</strong><br />
behavior, skills and knowledge are core criteria <strong>in</strong><br />
dist<strong>in</strong>guish<strong>in</strong>g between superior and standard<br />
performance.<br />
Candidates are screened dur<strong>in</strong>g recruitment through a<br />
series of <strong>in</strong>terviews to ensure they meet <strong>BASF</strong>’s standards<br />
and the requirements of the position. For ongo<strong>in</strong>g<br />
performance management and development, employees<br />
discuss with supervisors their goals and the skills<br />
necessary for their current position and career<br />
advancement, which are used to design tra<strong>in</strong><strong>in</strong>g programs.<br />
Human resource development based on competency<br />
From recruitment to succession plann<strong>in</strong>g, “competency<br />
assessment” lies at the heart of <strong>BASF</strong>‘s human resource<br />
development activities <strong>in</strong> <strong>Japan</strong>. Draw<strong>in</strong>g from a globally<br />
established competency framework, <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> bases<br />
its human resource development framework on 15<br />
competencies that are specific to employees work<strong>in</strong>g <strong>in</strong><br />
Career development opportunities<br />
Tra<strong>in</strong><strong>in</strong>g program for new graduates<br />
For new graduates, <strong>BASF</strong> has a three-year program called<br />
S-Sem<strong>in</strong>ar (from the German word “Startprogramm”, or<br />
Beg<strong>in</strong>ners‘ Program). The program helps new employees<br />
learn to act <strong>in</strong>dependently and effectively with<strong>in</strong> the <strong>BASF</strong><br />
organization.<br />
Competency-Based <strong>BASF</strong> Personnel Tra<strong>in</strong><strong>in</strong>g<br />
Succession Plann<strong>in</strong>g<br />
Development and career path<br />
Development Center <strong>Japan</strong><br />
Identity personnel with high leadership competency<br />
Formulate development plans<br />
Performance Management System<br />
Identify competencies<br />
Tra<strong>in</strong><strong>in</strong>g & development plan<br />
Orientation, Introduction Program<br />
Sem<strong>in</strong>ar for new graduates<br />
Orientation, On the job tra<strong>in</strong><strong>in</strong>g for mid-careers<br />
Recruitment<br />
<strong>BASF</strong> <strong>Asia</strong> <strong>Pacific</strong> Competency Interview Guidel<strong>in</strong>es<br />
<strong>BASF</strong> EMPLOYEES IN JAPAN<br />
Number of Employees<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> and its seven affiliated companies have<br />
approximately 1,700 employees nationwide (as of<br />
December 2010), br<strong>in</strong>g<strong>in</strong>g together a diverse range of<br />
employees without regard to nationality or gender.<br />
2,000<br />
1,500<br />
1,000<br />
1,490 1,490 1,460<br />
1,600<br />
1,740<br />
500<br />
0<br />
2006 2007 2008<br />
2009<br />
2010
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
Employees<br />
13<br />
New graduate hires take tra<strong>in</strong><strong>in</strong>g sessions on basic<br />
bus<strong>in</strong>ess skills and the <strong>BASF</strong> organization. First-year<br />
employees are assigned a coach and mentor to support<br />
them <strong>in</strong> their work life. Mentors expla<strong>in</strong> the work<strong>in</strong>gs of the<br />
company, career and development issues, while coaches,<br />
typically a senior colleague or supervisor, are responsible<br />
for on-the-job tra<strong>in</strong><strong>in</strong>g.<br />
From the second year of the program and beyond, each<br />
new graduate recruit receives tra<strong>in</strong><strong>in</strong>g from <strong>in</strong>ternal and<br />
external sources. Steps are taken to enhance skills <strong>in</strong><br />
problem solv<strong>in</strong>g, promote teamwork and foster leadership.<br />
At this stage, a career development plan is created.<br />
Further development programs<br />
After the S-Sem<strong>in</strong>ar, tra<strong>in</strong><strong>in</strong>g progresses accord<strong>in</strong>g to the<br />
employee’s respective career development, whether<br />
pursu<strong>in</strong>g a leadership path or a professional specialist<br />
path.<br />
Bus<strong>in</strong>ess skills tra<strong>in</strong><strong>in</strong>g<br />
A prerequisite for all employees, bus<strong>in</strong>ess skills tra<strong>in</strong><strong>in</strong>g<br />
programs enhance bus<strong>in</strong>ess knowledge and skills related<br />
to each employee’s particular duties and job function.<br />
These programs encompass a wide range of topics<br />
<strong>in</strong>clud<strong>in</strong>g career review, time management, presentation<br />
and negotiation skills, analytical th<strong>in</strong>k<strong>in</strong>g and project<br />
management.<br />
Management tra<strong>in</strong><strong>in</strong>g<br />
Management tra<strong>in</strong><strong>in</strong>g programs are provided for the<br />
company’s current and future managers. Tra<strong>in</strong><strong>in</strong>g is<br />
catered to the needs of each employee and ranges from<br />
basic management skills improvement to market<br />
management. Additionally, home study programs, such as<br />
MBA tra<strong>in</strong><strong>in</strong>g courses, are available. <strong>BASF</strong> <strong>Japan</strong> provides<br />
f<strong>in</strong>ancial assistance through its Distance MBA Sponsorship<br />
System to help selected employees atta<strong>in</strong> MBA degrees.<br />
Performance management system<br />
The Performance Management System is a year-long cycle<br />
<strong>in</strong> which employees and their managers engage <strong>in</strong> a series<br />
of meet<strong>in</strong>gs to jo<strong>in</strong>tly manage their own performance. This<br />
employee dialogue <strong>in</strong>cludes sett<strong>in</strong>g targets, provid<strong>in</strong>g<br />
feedback, evaluation as well as develop<strong>in</strong>g and<br />
implement<strong>in</strong>g development plans.<br />
Diversity<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> recognizes employee diversity is a strategic<br />
strength <strong>in</strong> overcom<strong>in</strong>g and excell<strong>in</strong>g with<strong>in</strong> an extremely<br />
competitive global market. It places great emphasis on<br />
build<strong>in</strong>g a robust and dynamic workforce that<br />
encompasses a wide spectrum of nationalities, gender,<br />
experiences and cultural backgrounds. Over the past<br />
decade, <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> has welcomed employees from a<br />
wide range of nationalities <strong>in</strong>to its workforce. In addition,<br />
the number of female recruits is steadily <strong>in</strong>creas<strong>in</strong>g.<br />
COMPETENCY-BASED HUMAN<br />
RESOURCES DEVELOPMENT<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> provides competency-based human<br />
resource development from the time of recruitment<br />
through the nurtur<strong>in</strong>g of next-generation leaders.<br />
By further<strong>in</strong>g diversity <strong>in</strong> <strong>in</strong>dividual and professional<br />
competencies throughout the <strong>BASF</strong> Group, we have<br />
established the best team <strong>in</strong> the <strong>in</strong>dustry.<br />
INDIVIDUALIZED CAREER<br />
DEVELOPMENT PLANS<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> designs and implements tra<strong>in</strong><strong>in</strong>g<br />
programs based on employee development plans. Each<br />
employee develops an annual tra<strong>in</strong><strong>in</strong>g plan with his or<br />
her supervisor, which is used to provide opportunities<br />
for education and development.
14<br />
Employees <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
Work life balance<br />
<strong>BASF</strong> embraces diversity and <strong>in</strong>clusion by recogniz<strong>in</strong>g the<br />
positive energy and creativity a workforce displays when it<br />
comb<strong>in</strong>es diversity of cultures, experiences and skill sets.<br />
Only this way can it best serve its equally diverse customer<br />
base and truly claim to have the “Best Team <strong>in</strong> the Industry.”<br />
Despite the company‘s organizational diversity, its core<br />
values give it a unique and dist<strong>in</strong>ct identity. These strongly<br />
<strong>in</strong>fluence what its employees do and how they act, and are<br />
a common thread connect<strong>in</strong>g employees at all levels of the<br />
bus<strong>in</strong>ess and across each region.<br />
home. Various IT tools are utilized to create a home<br />
workplace environment similar to conditions <strong>in</strong> the office,<br />
and this work format has established a new value<br />
perspective for both employees and the company. In 2010,<br />
we formed a company-wide Work Life Balance Committee,<br />
led by <strong>BASF</strong> <strong>Japan</strong> directors, charged with further<br />
enhanc<strong>in</strong>g employee satisfaction. Look<strong>in</strong>g ahead, we will<br />
cont<strong>in</strong>ue to support employees <strong>in</strong> their efforts to pursue<br />
self-directed work methods.<br />
To build a diverse workforce, a company must respect and<br />
provide a flexible framework to support a range of work<br />
practices and lifestyles. Flexible work<strong>in</strong>g hours were<br />
<strong>in</strong>troduced <strong>in</strong> 1994, and <strong>BASF</strong>‘s employee benefit system<br />
now <strong>in</strong>cludes child care and nurs<strong>in</strong>g care leave, as well as<br />
reduced work<strong>in</strong>g hours for employees with young children.<br />
Tra<strong>in</strong><strong>in</strong>g related leave is also a possibility for employees<br />
with three or more cont<strong>in</strong>uous years of service.<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> has been for many years at the lead<strong>in</strong>g<br />
edge of efforts to ensure a healthy balance between the<br />
work and family lives of its employees. As part of these<br />
efforts, <strong>in</strong> 2009 <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> <strong>in</strong>itiated the SOHO (Small<br />
Office / Home Office) program to limit the time employees<br />
spend <strong>in</strong> the office and to make a shift towards work<strong>in</strong>g at<br />
COMPETENCY-FOCUSED RECRUITING<br />
OPPORTUNITIES IN GLOBAL FIELDS<br />
<strong>BASF</strong> seeks to recruit highly motivated <strong>in</strong>dividuals with<br />
specialist expertise and a strong sense of <strong>in</strong>novation.<br />
We take a broad approach <strong>in</strong> recruit<strong>in</strong>g high-quality<br />
personnel without regard to culture and nationality,<br />
as well as emphasize the social competencies and<br />
communication skills of each candidate.<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> uses a broad range of recruitment<br />
methods to build a diverse and <strong>in</strong>clusive workforce<br />
irrespective of nationality. We provide many<br />
opportunities for <strong>Japan</strong>ese and other employees to ga<strong>in</strong><br />
experience overseas.
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
Employees<br />
15<br />
Promot<strong>in</strong>g partnerships with customers<br />
Daisuke Makishima<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd., Bus<strong>in</strong>ess Cluster III, Performance Products, Care Chemicals,<br />
Personal Care Ingredients (12th year of employment with the company)<br />
With<strong>in</strong> <strong>BASF</strong>’s overall bus<strong>in</strong>ess, cosmetic raw materials<br />
are relatively closer to the general consumer. As a result,<br />
I have many opportunities to discuss the consumption<br />
trends of both customers and consumers. There are<br />
numerous <strong>in</strong>stances where I ga<strong>in</strong> a strong sense of the<br />
close relationship between my work and everyday life.<br />
S<strong>in</strong>ce my appo<strong>in</strong>tment as manager <strong>in</strong> 2010, I have<br />
assumed responsibility for cosmetic sales and<br />
market<strong>in</strong>g for the Group as a whole <strong>in</strong> <strong>Japan</strong>. In addition<br />
to recogniz<strong>in</strong>g the responsibilities that go with the wide<br />
discretion that I am allowed as an employee, I also feel<br />
strongly motivated toward my work.<br />
Reduced work schedule after maternity leave<br />
helps operational efficiency<br />
Shiho Matsuura<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd., Plastics, Coat<strong>in</strong>gs & Construction, Responsible for<br />
Supply Cha<strong>in</strong> Management (6th year of employment with the company)<br />
When I first jo<strong>in</strong>ed the company, I was <strong>in</strong>volved <strong>in</strong> sales<br />
and market<strong>in</strong>g. The birth of my child was an opportunity<br />
to take on different types of work. S<strong>in</strong>ce return<strong>in</strong>g to<br />
the workplace <strong>in</strong> February 2010, I have been <strong>in</strong>volved <strong>in</strong><br />
the domestic distribution of plastic products. With the<br />
understand<strong>in</strong>g of my manager and colleagues, I am able<br />
to leave work an hour earlier than the prescribed time. To<br />
ensure there are no half measures, I approach my work<br />
with an <strong>in</strong>creased awareness toward improv<strong>in</strong>g operat<strong>in</strong>g<br />
efficiency. This <strong>in</strong>volves such measures as prioritiz<strong>in</strong>g<br />
bus<strong>in</strong>ess operations and ensur<strong>in</strong>g that <strong>in</strong>formation is<br />
shared closely with customers and the frontl<strong>in</strong>e.<br />
EXCELLING ACROSS GLOBAL MARKETS<br />
IMPROVING MANAGEMENT SKILLS<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> is engag<strong>in</strong>g <strong>in</strong> a broad spectrum of<br />
recruitment activities to build a diverse and <strong>in</strong>clusive<br />
workforce – irrespective of nationality and gender.<br />
Management tra<strong>in</strong><strong>in</strong>g programs are provided for the<br />
company’s current and future managers. Tra<strong>in</strong><strong>in</strong>g is<br />
catered to the needs of each employee and ranges<br />
from basic management skills improvement to market<br />
management.
16<br />
Employees <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
Innovation with the heart and m<strong>in</strong>d<br />
Yohei Koyama<br />
<strong>BASF</strong> Coat<strong>in</strong>gs <strong>Japan</strong> Ltd., Competence Center Base Coat (8th year<br />
of employment with the company)<br />
S<strong>in</strong>ce jo<strong>in</strong><strong>in</strong>g <strong>BASF</strong>, I have worked with<strong>in</strong> the company’s<br />
Base Coat Competence Center. My focus is largely<br />
on the development of automotive coat<strong>in</strong>gs. The<br />
development process is complex and often defies logic.<br />
Our ability to create new concepts and coat<strong>in</strong>gs as<br />
well as products that address the needs of customers,<br />
through a process of <strong>in</strong>formation exchange both<br />
<strong>in</strong>ternally and with our headquarters <strong>in</strong> Germany, is a<br />
major source of motivation and pride.<br />
Bus<strong>in</strong>ess and career opportunities that only a<br />
global company can provide<br />
Michi Kondo<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd., Chemicals and Crop Protection (4th year of employment<br />
with<strong>in</strong> the company)<br />
Dur<strong>in</strong>g my first two years with the company, I was<br />
engaged <strong>in</strong> the sale and market<strong>in</strong>g of am<strong>in</strong>es. Thereafter,<br />
I was ma<strong>in</strong>ly <strong>in</strong>volved <strong>in</strong> market<strong>in</strong>g plasticizers. When<br />
I began these later duties, I had the opportunity to<br />
work <strong>in</strong> a plasticizer application laboratory located <strong>in</strong><br />
Shanghai for a year and a half. In addition to receiv<strong>in</strong>g<br />
technical tra<strong>in</strong><strong>in</strong>g, I was <strong>in</strong>volved <strong>in</strong> provid<strong>in</strong>g technical<br />
support to customers throughout <strong>Asia</strong> and participated<br />
<strong>in</strong> jo<strong>in</strong>t projects with other departments. This <strong>in</strong>valuable<br />
experience and opportunity to build a network of<br />
contacts is prov<strong>in</strong>g extremely helpful <strong>in</strong> my current sales<br />
and market<strong>in</strong>g activities <strong>in</strong> <strong>Japan</strong>.<br />
DIVERSE WORK STYLES<br />
DIVERSITY IN HIRING<br />
The <strong>BASF</strong> Group’s policy is to provide employees who<br />
exhibit outstand<strong>in</strong>g capabilities with challenges and<br />
opportunities early <strong>in</strong> their careers, regardless of gender.<br />
We are committed to ensur<strong>in</strong>g an equal opportunity<br />
workplace for all employees, and along with maternity<br />
and child-rear<strong>in</strong>g leave, offer reduced work<strong>in</strong>g hours for<br />
child care needs.<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong> has a policy of recruit<strong>in</strong>g a diverse range<br />
of employees, which <strong>in</strong>cludes non-<strong>Japan</strong>ese (<strong>in</strong>clud<strong>in</strong>g<br />
foreign students), people with disabilities, and retirees.<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong>’s post-retirement reemployment program<br />
enables employees to cont<strong>in</strong>ue to work until the age of 65.
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
Innovation Worldwide<br />
17<br />
INNOVATION WORLDWIDE<br />
Research shapes the future<br />
This view through an electron microscope shows <strong>BASF</strong>’s silver catalysts on diatomaceous earth.<br />
<strong>BASF</strong> can look back on a long history of many significant<br />
<strong>in</strong>novations. Our research <strong>in</strong>novations play an<br />
important role <strong>in</strong> help<strong>in</strong>g improve people’s quality of life<br />
as well as environmental and resource conservation.<br />
With research and development, we are shap<strong>in</strong>g the<br />
future and generat<strong>in</strong>g new growth opportunities. In<br />
2010, we <strong>in</strong>vested nearly €1.5 billion <strong>in</strong> R&D projects.<br />
<strong>BASF</strong> has more than 9,600 employees at numerous<br />
research sites worldwide, often work<strong>in</strong>g together<br />
closely with important <strong>in</strong>ternational research <strong>in</strong>stitutes,<br />
customers and other partners. With the acquisitions of<br />
Ciba and Cognis, our research team and our portfolio<br />
have grown aga<strong>in</strong> and become more <strong>in</strong>ternational.<br />
Silver particles as catalysts<br />
Ancient fossilized diatoms serve an important purpose for<br />
<strong>BASF</strong>: The f<strong>in</strong>ely grounded shells of these fossilized algae,<br />
also known as diatomaceous earth, can be used as<br />
carriers for catalysts. Silver particles are attached to the<br />
surface of the diatomaceous earth – this is the real<br />
catalyst. Thanks to its numerous t<strong>in</strong>y cavities,<br />
diatomaceous earth has, compared with its volume, a huge<br />
surface on which chemical reactions can occur. This allows<br />
raw materials such as ethylene oxide to be manufactured.<br />
<strong>BASF</strong> HAS A STRONG PATENT POSITION<br />
NUMBER OF PATENT APPLICATIONS 2010<br />
Patents are crucial for long-term competitiveness. With<br />
the Patent Asset Index, developed by the Otto<br />
Beisheim School of Management (WHU) <strong>in</strong> Vallendar<br />
near Koblenz, Germany, patent portfolios worldwide can<br />
be compared more precisely. In 2010, <strong>BASF</strong> aga<strong>in</strong><br />
ranked first <strong>in</strong> the <strong>in</strong>dex, plac<strong>in</strong>g it among the most<br />
<strong>in</strong>novative companies <strong>in</strong> the chemical <strong>in</strong>dustry.<br />
1,100
18<br />
Innovation Worldwide <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
UV protection<br />
<strong>BASF</strong>’s new light stabilizer T<strong>in</strong>uv<strong>in</strong> ® XT 200 extends the life<br />
of agricultural film: T<strong>in</strong>uv<strong>in</strong> XT 200 comb<strong>in</strong>es an economic<br />
improvement <strong>in</strong> agricultural film with the benefits of UV<br />
protection. This <strong>in</strong>novative light stabilizer is particularly<br />
beneficial for greenhouses, which are often built<br />
<strong>in</strong>expensively us<strong>in</strong>g plastic film. Greenhouses are<br />
<strong>in</strong>creas<strong>in</strong>gly be<strong>in</strong>g used to help secure the world’s<br />
food supply.<br />
Transform<strong>in</strong>g carbon dioxide<br />
Formic acid is a versatile <strong>in</strong>termediate. Conversion of the<br />
greenhouse gas carbon dioxide (CO 2<br />
) <strong>in</strong>to formic acid is<br />
the focus of <strong>in</strong>tense research efforts around the world.<br />
<strong>BASF</strong> researchers are develop<strong>in</strong>g a highly efficient catalyst<br />
system that can make this process economical. The goal is<br />
to use CO 2<br />
from off-gas streams <strong>in</strong> the chemical <strong>in</strong>dustry<br />
as a raw material.<br />
Future raw material storage<br />
It is now possible to efficiently capture carbon dioxide from<br />
<strong>in</strong>dustrial flue gas and use it for chemical transformation –<br />
thanks to a new technology <strong>BASF</strong> developed together with<br />
RWE and L<strong>in</strong>de. Compared to processes commonly used<br />
today, tests <strong>in</strong> a coal-fired power plant show the <strong>in</strong>novative<br />
technology us<strong>in</strong>g new chemical solvents can reduce<br />
energy <strong>in</strong>put by about 20%. The new solvents also feature<br />
clearly superior oxygen stability, which reduces solvent<br />
consumption significantly. The first demonstration power<br />
plants are scheduled to start up <strong>in</strong> 2015. This technology<br />
should allow more than 90% of the CO 2<br />
conta<strong>in</strong>ed <strong>in</strong> the<br />
waste gas of a power plant to be captured for subsequent<br />
sub-surface storage or for chemical transformation.<br />
Better mileage for natural gas vehicles<br />
Natural gas-powered cars may soon be able to travel twice<br />
as far on a s<strong>in</strong>gle tank – thanks to metal-organic<br />
frameworks (MOFs). <strong>BASF</strong> researchers have developed an<br />
<strong>in</strong>novative method for solvent-free <strong>in</strong>dustrial-scale<br />
manufacture of these materials for better gas storage. The<br />
MOFs have a larger specific surface area and high porosity<br />
on the nanometer scale. This allows them to store relatively<br />
large volumes of gases <strong>in</strong> natural gas tanks and therefore<br />
<strong>in</strong>crease a vehicle’s mileage.<br />
Healthier potatoes<br />
On average, 20% of the world’s annual potato harvest is<br />
destroyed by late blight. The world’s most common<br />
disease affect<strong>in</strong>g potatoes is caused by the pathogen<br />
Phytophthora <strong>in</strong>festans. Until now, it was only possible to<br />
protect aga<strong>in</strong>st this fungal disease us<strong>in</strong>g fungicides.<br />
However, <strong>in</strong> Central America there is a wild potato that is<br />
naturally resistant to this dangerous disease. Researchers<br />
at <strong>BASF</strong> Plant Science have identified the genes that<br />
protect the potato aga<strong>in</strong>st late blight and have transferred<br />
them to a potato variety for consumption. This newly<br />
developed potato is called Fortuna. We plan to <strong>in</strong>troduce it<br />
on the market <strong>in</strong> the middle of this decade* 1 .<br />
*1 Compiled based on data as of March 2011.<br />
EMPLOYEES IN R&D<br />
INNOVATION IN NUMBERS IN 2010<br />
9,600<br />
• Project portfolio with around 3,000 projects<br />
• Clearly surpassed 2010 aim of generat<strong>in</strong>g<br />
€6 billion <strong>in</strong> sales from product <strong>in</strong>novations<br />
• Expect<strong>in</strong>g sales of up to €8 billion from product<br />
<strong>in</strong>novations <strong>in</strong> 2015<br />
• Net present value of <strong>BASF</strong>’s research pipel<strong>in</strong>e:<br />
nearly €21 billion
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
<strong>BASF</strong> Innovations and <strong>Japan</strong><br />
19<br />
<strong>BASF</strong> INNOVATIONS AND JAPAN<br />
IRGACURE ® OXE02 series highly sensitive photo<strong>in</strong>itiators for LCDs<br />
Photo<strong>in</strong>itiators are additives necessary to cure, or<br />
harden, a monomer (a liquid) <strong>in</strong>to a polymer (a solid) by<br />
us<strong>in</strong>g ultraviolet light, and are the key to photo-cur<strong>in</strong>g<br />
technologies. Photo-cur<strong>in</strong>g is an environmentally-friendly<br />
technology that requires less total energy than<br />
thermosett<strong>in</strong>g. The cur<strong>in</strong>g time is also considerably<br />
shorter, allow<strong>in</strong>g for greater efficiency <strong>in</strong> the production<br />
process. The fields of application are cont<strong>in</strong>ually<br />
expand<strong>in</strong>g, from pa<strong>in</strong>ts, coat<strong>in</strong>gs and <strong>in</strong>k to adhesives<br />
and electronics. <strong>BASF</strong> photo<strong>in</strong>itators are at the lead<strong>in</strong>g<br />
edge of photo cur<strong>in</strong>g technology. Their history marks<br />
progress <strong>in</strong> the development of photo cur<strong>in</strong>g, and the<br />
technology cont<strong>in</strong>ues to evolve.<br />
The launch of IRGACURE ® OXE02, developed by <strong>BASF</strong>’s<br />
team at the Amagasaki R&D Center, brought about a<br />
revolution <strong>in</strong> the production process for color filters, an<br />
important component <strong>in</strong> the liquid crystal displays (LCD) used<br />
throughout the world. Color filters comprise red, green and<br />
blue pixels on a black matrix. Previously the black matrix for<br />
the color filter was made with chromium oxide, produced<br />
us<strong>in</strong>g a method called vacuum deposition that <strong>in</strong>volves<br />
heat<strong>in</strong>g the material <strong>in</strong> a large chamber. In Europe, the needs<br />
for res<strong>in</strong> black matrix gradually <strong>in</strong>creased with environmental<br />
demands as well as technical demands: concerns about<br />
materials conta<strong>in</strong><strong>in</strong>g chromium oxide <strong>in</strong>creased, and<br />
technically the conventional black matrix seemed to cause<br />
frequent malfunctions of TFT transistors due to the <strong>in</strong>ternal<br />
reflections by back-lights with high brightness. In addition,<br />
while the market wanted larger LCDs, manufacturers were<br />
unable to provide them us<strong>in</strong>g the conventional production<br />
process due to limitations on the size of the heat<strong>in</strong>g<br />
chambers, and began to call for a breakthrough.<br />
It was already known that LCDs could easily be made<br />
larger by us<strong>in</strong>g a res<strong>in</strong> black matrix mixed with a high<br />
concentration of black carbon, but achiev<strong>in</strong>g the sensitivity<br />
that would provide sufficient productivity was difficult.<br />
IRGACURE ® OXE02 is a highly sensitive photo<strong>in</strong>itiator that<br />
allows for cur<strong>in</strong>g with less light. This additive made it<br />
possible to cure and achieve pattern<strong>in</strong>g of a res<strong>in</strong> black<br />
matrix by expos<strong>in</strong>g it to UV light for a few seconds. This<br />
resulted <strong>in</strong> a dramatic simplification of the production<br />
process for color filters, and <strong>in</strong> production equipment.<br />
Us<strong>in</strong>g the photo- cur<strong>in</strong>g technology elim<strong>in</strong>ated the need for<br />
the vacuum chamber that had been the bottleneck to<br />
produc<strong>in</strong>g larger LCDs. Manufacturers became able to<br />
respond flexibly to market needs without extensive capital<br />
expenditures, while at the same time unit-production time<br />
was considerably shortened and total energy used <strong>in</strong><br />
production reduced. Pattern<strong>in</strong>g of the black matrix us<strong>in</strong>g<br />
the light cur<strong>in</strong>g technique is currently the standard<br />
manufactur<strong>in</strong>g process <strong>in</strong> the <strong>in</strong>dustry. <strong>BASF</strong> <strong>Japan</strong><br />
received the Chemical Society of <strong>Japan</strong> (CSJ) Award for<br />
Technical Development for 2009 <strong>in</strong> recognition of its<br />
development of a highly sensitive photo<strong>in</strong>itiator for the res<strong>in</strong><br />
black matrix used <strong>in</strong> color filters.<br />
The success of IRGACURE ® OXE02 was made possible by<br />
close partnership with <strong>Japan</strong>ese manufacturers on the<br />
cutt<strong>in</strong>g edge of global markets. This is demonstrated by the<br />
speed of the process, just 14 months from decid<strong>in</strong>g (on the<br />
basis of customer feedback) to commercialize the<br />
compound. This <strong>in</strong>cluded the <strong>in</strong>itial synthesis <strong>in</strong> the<br />
laboratory through to the production of samples for trial <strong>in</strong><br />
quantities of several kilograms. With the rapid rise <strong>in</strong><br />
demand, production <strong>in</strong> tons began just two years from the<br />
start of development.<br />
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<strong>BASF</strong> JAPAN RECEIVES CSJ AWARD FOR<br />
TECHNICAL DEVELOPMENT<br />
<strong>BASF</strong> <strong>Japan</strong> received the Chemical Society of <strong>Japan</strong><br />
(CSJ) Award for Technical Development, for its<br />
development of a highly sensitive photo<strong>in</strong>itiator for the<br />
res<strong>in</strong> black matrix <strong>in</strong> color filters. The award recognized<br />
not only the practical application of technology to produce<br />
the res<strong>in</strong> black matrix, but also the contribution <strong>BASF</strong><br />
made to the advancement of the LCD <strong>in</strong>dustry with the<br />
swift <strong>in</strong>troduction of the f<strong>in</strong>ished product to the market.
20<br />
<strong>BASF</strong> Innovations and <strong>Japan</strong> <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
<strong>BASF</strong> INNOVATIONS AND JAPAN<br />
Basotect ® offers a broad spectrum of applications “from heaven to earth”<br />
Basotect ® , a versatile melam<strong>in</strong>e res<strong>in</strong> foam developed<br />
us<strong>in</strong>g proprietary technology from <strong>BASF</strong>, is be<strong>in</strong>g adopted<br />
by a variety of sectors <strong>in</strong> <strong>Japan</strong>. Today’s trends towards<br />
energy efficiency and lighter weight vehicles mean that<br />
the automotive field is one important area of application<br />
for Basotect ® . At the same time, Basotect ® is ideal for the<br />
use <strong>in</strong> eng<strong>in</strong>e rooms due to its high sound absorb<strong>in</strong>g<br />
capacity and ability to meet heat resistance requirements.<br />
In addition to its use <strong>in</strong> the eng<strong>in</strong>e hood covers of the Lexus<br />
LS series <strong>in</strong> <strong>Japan</strong>, Basotect ® has established a proven<br />
track record <strong>in</strong> the railway sector. The product can be found<br />
<strong>in</strong> subway and high-speed tra<strong>in</strong>s due to its outstand<strong>in</strong>g<br />
combustion performance and flame retardant properties,<br />
which comply with <strong>in</strong>ternational standards. Basotect ® has<br />
also been used <strong>in</strong> the manufacture of the new Tohoku<br />
Sh<strong>in</strong>kansen. In the aviation field, Basotect ® is used by<br />
Boe<strong>in</strong>g <strong>in</strong> its 787 Dreaml<strong>in</strong>er. Furthermore, Basotect ® is<br />
be<strong>in</strong>g used <strong>in</strong> the payload of rockets.<br />
In the construction sector, Basotect ® is ma<strong>in</strong>ly applied as an<br />
acoustic absorption material on ceil<strong>in</strong>gs and walls. Other<br />
applications <strong>in</strong>clude<br />
• <strong>in</strong>sulation of the collectors <strong>in</strong> solar thermal energy<br />
systems on rooftops - pipes which transport the heat<br />
and the heat reservoir<br />
• <strong>in</strong>sulation of pipes <strong>in</strong> liquefied natural gas tank term<strong>in</strong>als,<br />
address<strong>in</strong>g the need for foams which reta<strong>in</strong> their<br />
excellent properties even at extremely low temperatures<br />
• energy sav<strong>in</strong>g foam closure <strong>in</strong> false floor<strong>in</strong>g of data<br />
centers, which elim<strong>in</strong>ates thermal bridge and hence<br />
reduce energy losses<br />
In the domestic appliance sector, Basotect ® acquired<br />
certification under the UL94 V-0 flame retardant standard, a<br />
major and dist<strong>in</strong>guish<strong>in</strong>g strength. Therefore the product is<br />
used <strong>in</strong> hot water boiler, rice cookers and wash<strong>in</strong>g mach<strong>in</strong>es.<br />
Another def<strong>in</strong><strong>in</strong>g Basotect ® feature is its abrasive property.<br />
As a result, it is ga<strong>in</strong><strong>in</strong>g wide acceptance as a material used<br />
<strong>in</strong> the clean<strong>in</strong>g sector. Clean<strong>in</strong>g applications that have been<br />
manufactured us<strong>in</strong>g Basotect ® require no detergents and<br />
are accord<strong>in</strong>gly k<strong>in</strong>d to the environment and the sk<strong>in</strong>. For<br />
this reason, this product is attract<strong>in</strong>g considerable acclaim<br />
from consumers. Currently, the popularity of Basotect ®<br />
clean<strong>in</strong>g applications has spread to <strong>Asia</strong>, Europe and the<br />
United States.<br />
As a visible sign of long-term partnership, clean<strong>in</strong>g erasers<br />
produced by <strong>Japan</strong>ese household products manufacturer<br />
Wako and made from <strong>BASF</strong> melam<strong>in</strong>e res<strong>in</strong> foam Basotect ®<br />
show the brand alliance on the packag<strong>in</strong>g.<br />
<strong>BASF</strong> company quality mark with Basotect ® is stamped on the packages of products sold by Wako.<br />
WIDE RANGING INDUSTRIAL AND<br />
CONSUMER APPLICATIONS<br />
Basotect ® is the world’s first melam<strong>in</strong>e res<strong>in</strong> foam to be<br />
developed us<strong>in</strong>g proprietary technology. Even <strong>in</strong> its foam<br />
format, Basotect ® reta<strong>in</strong>s the heat resistancy, flame<br />
retardancy, consistency and other features <strong>in</strong>herent <strong>in</strong><br />
melam<strong>in</strong>e res<strong>in</strong>. Together with its <strong>in</strong>dustrial applications <strong>in</strong><br />
such fields as construction, transportation, electric appliances<br />
and electronics, Basotect ® can be used for consumer and<br />
clean<strong>in</strong>g purposes as well as many new applications.<br />
A range of seven grades depend<strong>in</strong>g on the relevant segment and application
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
<strong>BASF</strong> Br<strong>in</strong>gs <strong>Japan</strong> Innovation to the World<br />
21<br />
<strong>BASF</strong> BRINGS JAPAN INNOVATION TO<br />
THE WORLD<br />
Noble Prize w<strong>in</strong>n<strong>in</strong>g “Cross coupl<strong>in</strong>g technology” is also applied <strong>in</strong> <strong>BASF</strong> products<br />
Cross coupl<strong>in</strong>g technology, the pr<strong>in</strong>cipal research theme of<br />
the 2010 Nobel Prize <strong>in</strong> Chemistry, is be<strong>in</strong>g applied <strong>in</strong> the<br />
development of <strong>BASF</strong> products. This global recognition of<br />
research pioneered <strong>in</strong> <strong>Japan</strong> demonstrates the importance<br />
of practical applications of chemical <strong>in</strong>novations <strong>in</strong> a broad<br />
spectrum of the company’s activities.<br />
Suzuki Coupl<strong>in</strong>g is the synthetic process used to produce<br />
Boscalid, the active <strong>in</strong>gredient <strong>in</strong> <strong>BASF</strong>’s lead<strong>in</strong>g fungicides<br />
Cantus, Signum and Naria. In terms of volume, the<br />
production of Boscalid is the s<strong>in</strong>gle largest <strong>in</strong>dustrial<br />
application of Suzuki Coupl<strong>in</strong>g.<br />
The Royal Swedish Academy of Sciences awarded the 2010<br />
Nobel Prize <strong>in</strong> Chemistry to U.S. and <strong>Japan</strong>ese chemists<br />
Richard Beck, Ei-ichi Negishi and Akira Suzuki on October<br />
6, 2010 for their research <strong>in</strong> palladium-catalyzed cross<br />
coupl<strong>in</strong>gs <strong>in</strong> organic synthesis. All organic compounds are<br />
essentially formed as carbon-carbon bonds. The search for<br />
effective ways to b<strong>in</strong>d carbon atoms has cont<strong>in</strong>ued to<br />
challenge the field of organic chemistry for a great many<br />
years. As one method <strong>in</strong> address<strong>in</strong>g this challenge, cross<br />
coupl<strong>in</strong>g is used to synthesize and jo<strong>in</strong> different organic<br />
carbon-carbon molecules. Apply<strong>in</strong>g the palladium-catalyzed<br />
synthetic approach developed by Richard Beck to cross<br />
coupl<strong>in</strong>g, Ei-ichi Negishi identified a stable cross coupl<strong>in</strong>g<br />
reaction (Negishi Coupl<strong>in</strong>g) <strong>in</strong>volv<strong>in</strong>g an organoz<strong>in</strong>c<br />
compound. Employ<strong>in</strong>g this technique, Akira Suzuki then<br />
developed an alternative coupl<strong>in</strong>g reaction (Suzuki<br />
Coupl<strong>in</strong>g) us<strong>in</strong>g an organoboron derivative <strong>in</strong>stead of z<strong>in</strong>c.<br />
Suzuki Coupl<strong>in</strong>g offers several additional advantages. The<br />
reaction is largely unaffected by the presence of water and<br />
is stable <strong>in</strong> air allow<strong>in</strong>g a reduction <strong>in</strong> costs. Collectively,<br />
these <strong>in</strong>novations have contributed to <strong>in</strong>dustrial<br />
development across wide-rang<strong>in</strong>g fields. In addition to liquid<br />
crystal panels, organic electrolum<strong>in</strong>escent materials and<br />
pharmaceuticals, cross coupl<strong>in</strong>g technology is a key<br />
component <strong>in</strong> <strong>BASF</strong>’s agrochemical development activities.<br />
<strong>BASF</strong> has the world’s largest Boscalid plant us<strong>in</strong>g the Suzuki coupl<strong>in</strong>g reaction.<br />
In addition, <strong>BASF</strong>’s Inorganics division has recently<br />
commenced production of organoz<strong>in</strong>c halides. These are<br />
used for Negishi coupl<strong>in</strong>gs. Production of these compounds<br />
as well as various boric acid esters for the Suzuki reaction<br />
take place at the <strong>BASF</strong> site <strong>in</strong> Evans City near Pittsburgh,<br />
Pennsylvania, <strong>in</strong> the United States. Both Ei-ichi Negishi and<br />
Akira Suzuki regularly attend <strong>BASF</strong>’s boron conferences to<br />
discuss the latest developments <strong>in</strong> boron and z<strong>in</strong>c chemistry.<br />
The recent announcement by the Royal Swedish Academy of<br />
Sciences is a gratify<strong>in</strong>g testament to the efforts of chemists <strong>in</strong><br />
the United States and <strong>Japan</strong> over many years. Seek<strong>in</strong>g<br />
solutions beyond boundaries, <strong>BASF</strong> will work closely with the<br />
highest caliber human resources and <strong>in</strong>corporate lead<strong>in</strong>gedge<br />
science and technology to develop highly <strong>in</strong>novative<br />
processes and techniques.<br />
<strong>BASF</strong>’S FUNGICIDES USING COUPLING<br />
TECHNOLOGY<br />
<strong>BASF</strong>’s fungicides such as Cantus, Signum and Naria<br />
<strong>in</strong>clude the active <strong>in</strong>gredient Boscalid.<br />
<strong>BASF</strong> products have been registered for development<br />
as fungicides for vegetables, beans and fruits <strong>in</strong> a large<br />
number of countries <strong>in</strong>clud<strong>in</strong>g <strong>Japan</strong>. Effective aga<strong>in</strong>st<br />
other fungicide-resistant stra<strong>in</strong>s of bacteria, and used for<br />
more 100 different types of crop, <strong>BASF</strong>’s crop protection<br />
products are currently sold <strong>in</strong> over 70 countries.<br />
The fungicide Cantus, which conta<strong>in</strong>s Boscalid as the active <strong>in</strong>gredient,<br />
protects fruits and vegetables from a variety of diseases.
22<br />
Trust & Responsibility <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
TRUST & RESPONSIBILITY<br />
We <strong>in</strong>tegrate social and environmental responsibility <strong>in</strong>to our bus<strong>in</strong>ess activities.<br />
A bus<strong>in</strong>ess cannot be successful <strong>in</strong> the long term if<br />
it does not act responsibly towards the environment and<br />
society. That is why susta<strong>in</strong>ability is an <strong>in</strong>tegral part of<br />
our strategy. With susta<strong>in</strong>able development, we create<br />
value for our partners <strong>in</strong> <strong>in</strong>dustry and society and for us.<br />
Work<strong>in</strong>g with experts to identify important topics<br />
We want to recognize topics early on that could represent<br />
opportunities or risks for our bus<strong>in</strong>ess now or <strong>in</strong> the future.<br />
Therefore we regularly analyze the importance of<br />
susta<strong>in</strong>ability topics for <strong>BASF</strong> and for society. In 2010, we<br />
carried out a new analysis and surveyed several hundred<br />
external experts as well as <strong>BASF</strong> managers. Subsequently,<br />
our <strong>in</strong>ternal susta<strong>in</strong>ability experts evaluated the economic<br />
and strategic importance of these topics for <strong>BASF</strong>. We are<br />
publish<strong>in</strong>g the results onl<strong>in</strong>e. While topics such as climate<br />
protection and demographic change rema<strong>in</strong> very<br />
significant, other topics such as biodiversity, renewable<br />
raw materials and water are becom<strong>in</strong>g <strong>in</strong>creas<strong>in</strong>gly<br />
important.<br />
Stewardship for our products<br />
We ensure that our products are safe and do not pose a<br />
danger to people or the environment when they are used<br />
responsibly and <strong>in</strong> the manner <strong>in</strong>tended. Under the<br />
European chemicals directive REACH, as of 2010,<br />
substances had to be registered with the European<br />
Chemicals Agency (ECHA) <strong>in</strong> order to cont<strong>in</strong>ue to be<br />
available with<strong>in</strong> the European Union. This applied to all<br />
substances produced or imported <strong>in</strong> quantities of more<br />
than 1,000 metric tons annually as well as all substances<br />
with certa<strong>in</strong> hazardous properties. The registration dossiers<br />
also conta<strong>in</strong> an exact description of how the chemicals are<br />
to be used safely by the subsequent users. In the first<br />
wave of registration, <strong>BASF</strong> punctually registered almost<br />
600 substances with ECHA. Beyond the statutory<br />
requirements, we <strong>in</strong>troduced our own global guidel<strong>in</strong>es for<br />
product stewardship and have set ourselves worldwide<br />
goals. In addition, we support the implementation of the<br />
Global Product Strategy (GPS) of the International Council<br />
of Chemical Associations (ICCA). GPS aims to establish<br />
global standards to improve the safety of us<strong>in</strong>g chemical<br />
substances.<br />
Global disaster assistance<br />
Two major humanitarian catastrophes particularly moved<br />
the world <strong>in</strong> 2010: the earthquake <strong>in</strong> Haiti and the<br />
disastrous flood<strong>in</strong>g <strong>in</strong> Pakistan. <strong>BASF</strong> and its employees<br />
also did their part to help the victims. In Haiti, <strong>BASF</strong><br />
provided both immediate emergency aid to the earthquake<br />
victims and assistance for long-term rebuild<strong>in</strong>g. <strong>BASF</strong><br />
Corporation donated $100,000 to the American Red Cross<br />
for immediate aid. In addition, <strong>BASF</strong> Sozialstiftung (“<strong>BASF</strong><br />
Social Foundation”) provided a €200,000 donation to<br />
partner organization UN-HABITAT to rebuild a tra<strong>in</strong><strong>in</strong>g<br />
facility <strong>in</strong> Haiti. <strong>BASF</strong> also provided assistance to the<br />
victims of the disastrous flood<strong>in</strong>g <strong>in</strong> Pakistan: The<br />
company and employees <strong>in</strong> more than 20 countries<br />
donated about €785,000 for the flood victims, which was<br />
distributed to various UN organizations and the Red Cross.<br />
VALUES CREATE VALUE<br />
“Last<strong>in</strong>g economic success can only be realized if<br />
there is a responsible balance between economic,<br />
environmental and social <strong>in</strong>terests.”<br />
Dr. Jürgen Hambrecht<br />
former Chairman of the Board of Executive Directors of <strong>BASF</strong> SE<br />
Access to clean dr<strong>in</strong>k<strong>in</strong>g water was declared a human right <strong>in</strong> 2010.
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
<strong>BASF</strong> Kids’ Lab<br />
23<br />
<strong>BASF</strong> KIDS’ LAB<br />
We br<strong>in</strong>g the magic of chemistry to the next generation<br />
As the world‘s lead<strong>in</strong>g chemical company, <strong>BASF</strong> strives<br />
to leverage its expertise <strong>in</strong> chemistry and foster <strong>in</strong>terest<br />
among future generations.<br />
<strong>BASF</strong> Kids’ Lab<br />
The <strong>BASF</strong> Kids’ Lab program uses everyday materials to<br />
<strong>in</strong>troduce chemistry to children <strong>in</strong> a fun, <strong>in</strong>terest<strong>in</strong>g and<br />
tangible way through simple and <strong>in</strong>teractive hands-on<br />
experiments. S<strong>in</strong>ce its <strong>Asia</strong> <strong>Pacific</strong> launch <strong>in</strong> 2002, more than<br />
200,000 kids have participated <strong>in</strong> the program <strong>in</strong> the region.<br />
Dur<strong>in</strong>g 2010, <strong>BASF</strong> held the program <strong>in</strong> two locations <strong>in</strong><br />
<strong>Japan</strong> <strong>in</strong> Tahara City and at the National Museum of<br />
Emerg<strong>in</strong>g Science and Innovation.<br />
vitam<strong>in</strong> C content <strong>in</strong> dr<strong>in</strong>ks us<strong>in</strong>g a household mouthwash<br />
solution for children; and the third entailed observations of<br />
the changes <strong>in</strong> liquidity by add<strong>in</strong>g concrete admixtures to a<br />
mixture of sand, cement and water to highlight their<br />
beneficial features <strong>in</strong> construction.<br />
Expla<strong>in</strong><strong>in</strong>g about concrete materials and their application <strong>in</strong> an easy-to-understand manner<br />
before launch<strong>in</strong>g <strong>in</strong>to a practical experiment us<strong>in</strong>g concrete admixtures.<br />
Volunteerism as a learn<strong>in</strong>g experience<br />
Employees who have undergone the requisite tra<strong>in</strong><strong>in</strong>g serve<br />
as volunteer teachers for <strong>BASF</strong> Kids’ Lab <strong>in</strong> <strong>Japan</strong>. As many<br />
volunteer teachers have no contact with each other as work<br />
colleagues, participation <strong>in</strong> these Kids’ Lab events is an<br />
opportunity to promote communication across divisions.<br />
Children hav<strong>in</strong>g fun while participat<strong>in</strong>g <strong>in</strong> practical experiments (measur<strong>in</strong>g the vitam<strong>in</strong> C<br />
content <strong>in</strong> dr<strong>in</strong>ks and plants us<strong>in</strong>g a household mouthwash).<br />
Learn<strong>in</strong>g about chemistry with hands-on experiments<br />
Three easy-to-understand practical experiments utiliz<strong>in</strong>g<br />
<strong>BASF</strong> chemicals were conducted <strong>in</strong> 2010. The first <strong>in</strong>cluded<br />
demonstrations of the various features of superabsorbent<br />
polymers commonly used <strong>in</strong> such everyday products as<br />
baby diapers; the second <strong>in</strong>volved measurements of the<br />
Employees undergo tra<strong>in</strong><strong>in</strong>g <strong>in</strong> preparation for their roles as teachers<br />
BRINGING CHEMISTRY TO LIFE<br />
Dur<strong>in</strong>g Kids’ Lab at Agricultural Station <strong>in</strong> Tahara City <strong>in</strong><br />
2010, <strong>BASF</strong> hosted a laboratory tour. Local residents<br />
were <strong>in</strong>troduced to the company’s research activities <strong>in</strong><br />
crop protections as herbicides, fungicides and<br />
<strong>in</strong>secticides. In 2010, <strong>BASF</strong> Kids’ Lab attracted a total of<br />
160 elementary school students <strong>in</strong> <strong>Japan</strong>.<br />
Children observ<strong>in</strong>g the behavior of ants attracted to the smell of ballpo<strong>in</strong>t pens at a laboratory tour,<br />
which was held after the Kids’ Lab experiments at the Agricultural Station <strong>in</strong> Tahara City.
24<br />
<strong>BASF</strong> <strong>in</strong> the Regions <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
<strong>BASF</strong> IN THE REGIONS<br />
Sales 2010: €63,873 million; EBIT 2010: €7,761 million<br />
basf.com<br />
FREEPORT<br />
R<br />
R<br />
GEISMAR<br />
R R<br />
FLORHAM<br />
PARK<br />
NORTH AMERICA<br />
compared with previous year<br />
SALES EBIT EMPLOYEES<br />
+41% +120% 16,487<br />
R<br />
SÃO<br />
PAULO<br />
R<br />
Regional centers<br />
Verbund sites<br />
Selected production sites<br />
Most important research sites<br />
SOUTH AMERICA, AFRICA,<br />
MIDDLE EAST<br />
compared with previous year<br />
SALES EBIT EMPLOYEES<br />
+31% –37% 6,879<br />
NORTH AMERICA<br />
SOUTH AMERICA, AFRICA, MIDDLE EAST<br />
Sales of companies based <strong>in</strong> North America rose by<br />
41% to €13,246 million or 34% <strong>in</strong> local currency terms.<br />
Nearly all segments posted considerable ga<strong>in</strong>s <strong>in</strong> sales<br />
volumes and sales compared with the previous year.<br />
Income from operations <strong>in</strong> 2010 reached a new record<br />
of €1,107 million, represent<strong>in</strong>g an <strong>in</strong>crease of €604<br />
million over the previous year.<br />
For companies based <strong>in</strong> South America, Africa, Middle<br />
East, sales were far above the 2009 level, <strong>in</strong>creas<strong>in</strong>g by<br />
31% to €3,829 million thanks to the substantial economic<br />
recovery. In local currency terms, sales were 19% higher<br />
than 2009. Compared with 2009, <strong>in</strong>come from operations<br />
decl<strong>in</strong>ed by €104 million to €177 million. This was due to<br />
one-time expenses for valuation adjustments on<br />
receivables related to long-term supply agreements.
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
<strong>BASF</strong> <strong>in</strong> the Regions<br />
25<br />
<strong>BASF</strong> is the world’s lead<strong>in</strong>g chemical company – The Chemical Company. With about 109,000 employees, six Verbund<br />
sites and approximately 390 additional production sites worldwide, we support customers and partners <strong>in</strong> almost all<br />
countries.<br />
LUDWIGSHAFEN<br />
ANTWERP<br />
R R<br />
EUROPE<br />
compared with previous year<br />
SALES EBIT EMPLOYEES<br />
+16% +118% 69,809<br />
R<br />
R<br />
R R R<br />
R<br />
NANJING<br />
R<br />
R<br />
HONG KONG<br />
R<br />
R<br />
KUANTAN<br />
SINGAPORE<br />
ASIA PACIFIC<br />
compared with previous year<br />
SALES EBIT EMPLOYEES<br />
+46% +153% 15,965<br />
EUROPE<br />
ASIA PACIFIC<br />
Sales of companies based <strong>in</strong> Europe grew by 16%<br />
compared with the previous year to reach €35,156<br />
million. Sales <strong>in</strong>creased <strong>in</strong> nearly all segments thanks to<br />
improved demand. The Oil & Gas segment posted a<br />
decl<strong>in</strong>e sales ow<strong>in</strong>g to lower natural gas prices. At<br />
€5,206 million, <strong>in</strong>come from operations was more than<br />
twice as high as <strong>in</strong> the previous year.<br />
Sales of companies based <strong>in</strong> <strong>Asia</strong> <strong>Pacific</strong> <strong>in</strong>creased by<br />
46% to €11,642 million, or 35% <strong>in</strong> local currency<br />
terms. Sales <strong>in</strong>creased <strong>in</strong> all segments, particularly <strong>in</strong><br />
our chemicals bus<strong>in</strong>ess. We posted record <strong>in</strong>come<br />
from operations, which rose by €768 million to €1,271<br />
million thanks ma<strong>in</strong>ly to higher volumes.
26<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong>:<br />
Contacts of Ma<strong>in</strong> Subsidiaries and Jo<strong>in</strong>t Ventures<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
<strong>BASF</strong> IN JAPAN:<br />
Contacts of Ma<strong>in</strong> Subsidiaries and Jo<strong>in</strong>t Ventures<br />
<strong>BASF</strong> <strong>Japan</strong> Ltd.<br />
Head Offi ce<br />
Roppongi Hills Mori Tower 21F, 6-10-1<br />
Roppongi, M<strong>in</strong>ato-ku, Tokyo 106-6121<br />
TEL: 03-3796-5111<br />
FAX: 03-3796-4111<br />
Nihonbashi Offi ce<br />
Hulic Kobunacho Bldg. 8-1<br />
Nihonbashi, Kobuna-cho, Chuo-ku, Tokyo 103-0024<br />
TEL: 03-6667-2800<br />
FAX: 03-6667-2830<br />
Osaka Offi ce<br />
Nomura Fudosan Osaka Bldg. 1-8-15<br />
Azuchi-machi, Chuo-ku, Osaka 541-0052<br />
TEL: 06-6266-6826<br />
FAX: 06-6266-6974<br />
Yokkaichi Site<br />
1-23-2 Kasumi, Yokkaichi-shi, Mie 510-0011<br />
TEL: 059-366-7777<br />
FAX: 059-366-7719<br />
Yokkaichi, Rokuromi Plant<br />
653-2 Rokuromi, Yokkaichi-shi, Mie 510-0881<br />
TEL: 059-348-1563<br />
FAX: 059-348-1560<br />
Nagoya Offi ce<br />
16F Nittochi Nagoya build<strong>in</strong>g, 2-1-1<br />
Sakae, Nakaku, Nagoya, Aichi 460-0008<br />
TEL: 052-218-0562<br />
FAX: 052-204-3061<br />
Himeji Offi ce<br />
61 Toyosawa-cho, Himeji-shi, Hyogo 670-0964<br />
TEL: 0792-24-5322<br />
FAX: 0792-24-5323<br />
Tahara Agricultural Station<br />
16-1 Kamigaya, Mutsure-cho, Tahara-shi, Aichi Pref. 441-3413<br />
TEL: 0531-27-1630<br />
FAX: 0531-27-1634<br />
Koriyama Plant<br />
2-1 Enokida, Takakura, Hiwada-machi,<br />
Koriyama-shi, Fukushima Pref. 963-0531<br />
TEL: 0249-58-3339<br />
FAX: 0249-58-3329<br />
Amagasaki R&D Center<br />
7-1-13 Doi-cho, Amagasaki, Hyogo 660-0083<br />
TEL: 06-6415-1500<br />
FAX: 06-6415-1505<br />
Isohara Plant<br />
1094-2 Isohara, Isohara-cho, Kitaibaraki-shi, Ibaraki 319-1541<br />
TEL: 0293-42-1297<br />
FAX: 0293-42-1248<br />
Kitatone Plant<br />
9-3 Kitatone, Koga-shi, Ibaraki 306-0213<br />
TEL: 0280-92-1488<br />
FAX: 0280-92-4503<br />
<strong>BASF</strong> Coat<strong>in</strong>gs <strong>Japan</strong> Ltd.<br />
Head Offi ce<br />
296 Shimokurata-cho, Totsuka-ku, Yokohama, Kanagawa 244-0815<br />
TEL: 045-862-7526<br />
FAX: 045-861-7527<br />
Totsuka Plant<br />
296 Shimokurata-cho, Totsuka-ku, Yokohama, Kanagawa 244-0815<br />
TEL: 045-862-7500<br />
FAX: 045-865-4867<br />
Automotive Refi nish/Commercial Transport Coat<strong>in</strong>gs Solutions<br />
1237 Nippa-cho, Kohoku-ku, Yokohama-shi, Kanagawa 223-0057<br />
TEL: 045-546-8020<br />
FAX: 045-546-8050<br />
<strong>BASF</strong> Pozzolith Ltd.<br />
Head Offi ce<br />
Roppongi Hills Mori Tower 21F, 6-10-1<br />
Roppongi, M<strong>in</strong>ato-ku, Tokyo 106-6121<br />
TEL: 03-3796-9710<br />
FAX: 03-3796-9980<br />
Productions<br />
3-1-70 Chigasaki, Chigasaki-shi, Kanagawa 253-0041<br />
TEL: 0467-83-1241<br />
FAX: 0467-85-6995<br />
Development Center<br />
2722 Hagizono, Chigasaki-shi, Kanagawa 253-0071<br />
TEL: 0467-87-8080<br />
FAX: 0467-82-6299<br />
Sendai Branch<br />
2-18-21 Honcho, Aoba-ku, Sendai-shi, Miyagi 980-0014<br />
TEL: 022-224-1631<br />
FAX: 022-224-1634<br />
Tokyo Branch<br />
16-26, Roppongi 3-chome, M<strong>in</strong>ato-ku, Tokyo 106-0032<br />
TEL: 03-3796-9900<br />
FAX: 03-3796-9960<br />
Nagoya Branch<br />
2-1-1, Sakae, Naka-ku, Nagoya-shi, Aichi 460-0008<br />
TEL: 052-220-1113<br />
FAX: 052-220-1713
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
<strong>BASF</strong> <strong>in</strong> <strong>Japan</strong>:<br />
27<br />
Contacts of Ma<strong>in</strong> Subsidiaries and Jo<strong>in</strong>t Ventures<br />
Osaka Branch<br />
1-8-15 Aduchi-machi, Chuo-ku, Osaka-shi 541-0052<br />
TEL: 06-4964-7240<br />
FAX: 06-4964-7244<br />
Fukuoka Branch<br />
1-4-1 Hakata-ekimae, Hakata-ku,Fukuoka-shi 812-0011<br />
TEL: 092-481-1271<br />
FAX: 092-481-1273<br />
<strong>BASF</strong> Metals <strong>Japan</strong> Ltd.<br />
Head Offi ce<br />
World Trade Center Bldg. 24F, 2-4-1<br />
Hamamatsu-cho, M<strong>in</strong>ato-ku, Tokyo 105-6124<br />
TEL: 03-3578-6661<br />
FAX: 03-5425-7481<br />
N.E. Chemcat Corporation<br />
Head Offi ce<br />
World Trade Center Bldg. 24F, 2-4-1<br />
Hamamatsu-cho, M<strong>in</strong>ato-ku, Tokyo 105-6124<br />
TEL: 03-3435-5490<br />
FAX: 03-3435-5484<br />
Numazu Plant<br />
678 Ipponmatsu, Numazu-shi, Shizuoka 410-0314<br />
TEL: 055-966-1080<br />
FAX: 055-967-2544<br />
Tsukuba Plant<br />
25-3 Kohsh<strong>in</strong>daira, Bando-shi, Ibaraki 306-0608<br />
TEL: 0297-36-7777<br />
FAX: 0297-36-7733<br />
<strong>BASF</strong> Idemitsu Co., Ltd<br />
Head Offi ce<br />
Roppongi Hills Mori Tower 21F, 6-10-1<br />
Roppongi, M<strong>in</strong>ato-ku, Tokyo 106-6121<br />
TEL: 03-3796-4100<br />
FAX: 03-3796-4109<br />
*As of October 1, 2011<br />
Chiba Plant<br />
2-1 Anegasaki Kaigan, Ichihara-shi, Chibao 299-0107<br />
TEL: 0436-60-1865<br />
FAX: 0436-60-1941<br />
<strong>BASF</strong> INOAC Polyurethanes, Ltd.<br />
Head Offi ce/Plant<br />
1-196 Hongudo, Kawada, Sh<strong>in</strong>shiro, Aichi 441-1347<br />
TEL: 0536-23-5533<br />
FAX: 0536-23-2557<br />
Higashi Nihon Sales Offi ce<br />
Gotanda NN Build<strong>in</strong>g 4F, 2-12-19<br />
Nishi-Gotanda, Sh<strong>in</strong>agawa-ku 141-0031<br />
TEL: 03-5759-8701<br />
FAX: 03-5759-8704<br />
Nishi Nihon Sales Offi ce<br />
KIRIX Marunouchi Bldg. 3F, 1-17-19<br />
Naka-ku, Nagoya-shi, Aichio 460-0002<br />
TEL: 052-229-0600<br />
FAX: 052-204-6505
28<br />
Ten-year Summary <strong>BASF</strong> <strong>in</strong> <strong>Japan</strong><br />
Report 2010<br />
TEN-YEAR SUMMARY<br />
Ten-Year Summary (million €)<br />
Sales and Earn<strong>in</strong>gs 1<br />
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
Sales 32,500 32,216 33,361 37,537 42,745 52,610 57,951 62,304 50,693 63,873<br />
Income from operations before depreciation and<br />
amortization (EBITDA) 4,142 5,105 5,110 7,685 8,233 9,723 10,225 9,562 7,388 11,131<br />
Income from operations (EBIT) 1,217 2,641 2,658 5,193 5,830 6,750 7,316 6,463 3,677 7,761<br />
Income from ord<strong>in</strong>ary activities 609 2,641 2,168 4,347 5,926 6,527 6,935 5,976 3,079 7,373<br />
Extraord<strong>in</strong>ary <strong>in</strong>come 6,121 – – – – – – – – –<br />
Income before taxes and m<strong>in</strong>ority <strong>in</strong>terests 6,730 2,641 2,168 4,347 5,926 6,527 6,935 5,976 3,079 7,373<br />
Income before m<strong>in</strong>ority <strong>in</strong>terests 5,826 1,599 976 2,133 3,168 3,466 4,325 3,305 1,655 5,074<br />
Net <strong>in</strong>come 5,858 1,504 910 2,004 3,007 3,215 4,065 2,912 1,410 4,557<br />
Capital expenditures and depreciation 1<br />
Additions to property, plant and equipment<br />
and <strong>in</strong>tangible assets 3,313 3,055 3,415 2,163 2,523 10,039 4,425 3,634 5,972 5,304<br />
Thereof property, plant and equipment 3,037 2,677 2,293 2,022 2,188 4,068 2,564 2,809 4,126 3,294<br />
Depreciation and amortization of property, plant<br />
and equipment and <strong>in</strong>tangible assets 2,925 2,464 2,452 2,492 2,403 2,973 2,909 3,099 3,711 3,370<br />
Thereof property, plant and equipment 2,307 2,012 1,951 2,053 2,035 2,482 2,294 2,481 2,614 2,667<br />
Number of employees at year-end 92,545 89,389 87,159 81,955 80,945 95,247 95,175 96,924 104,779 109,140<br />
Personnel expenses 1 6,028 5,975 5,891 5,615 5,574 6,210 6,648 6,364 7,107 8,228<br />
Key data 1<br />
Earn<strong>in</strong>gs per share (€) 2,3 4.86 4 1.30 0.81 1.83 2.87 3.19 4.16 3.13 1.54 4.96<br />
Cash provided by operat<strong>in</strong>g activities 5 2,319 2,313 4,878 4,634 5,250 6 5,940 5,807 5,023 5,693 6,460<br />
EBITDA marg<strong>in</strong> (%) 12.7 15.8 15.3 20.5 19.3 18.5 17.6 15.3 14.6 17.4<br />
Return on assets (%) 3.1 8.4 7.4 13.2 17.7 17.5 16.4 13.5 7.5 14.7<br />
Return on equity after taxes (%) 36.6 4 9.3 6.0 12.9 18.6 19.2 22.4 17.0 8.9 24.6<br />
Share 2<br />
Year-end price (€) 20.88 18.04 22.29 26.50 32.36 36.93 50.71 27.73 43.46 59.70<br />
Dividend per share (€) 2 0.65 0.70 0.70 0.85 1.00 1.50 1.95 1.95 1.70 2.20<br />
Number of shares as of December 31 (million) 2,7 1,166.8 1,140.6 1,113.3 1,080.9 1,028.8 999.4 956.4 918.5 918.5 918.5<br />
1<br />
Start<strong>in</strong>g <strong>in</strong> 2005, the account<strong>in</strong>g and report<strong>in</strong>g of the <strong>BASF</strong> Group have been prepared <strong>in</strong> accordance with International F<strong>in</strong>ancial Report<strong>in</strong>g Standards (IFRS). The<br />
previous year’s figures have been restated <strong>in</strong> accordance with IFRS. The figures for the years up to and <strong>in</strong>clud<strong>in</strong>g 2003 were prepared accord<strong>in</strong>g to German GAAP.<br />
2<br />
In the second quarter of 2008, we conducted a two-for-one stock split. The previous years’ figures for earn<strong>in</strong>gs per share and number of shares have been adjusted<br />
accord<strong>in</strong>gly.<br />
3<br />
Adjusted for special items and impairment of <strong>in</strong>tangible assets, earn<strong>in</strong>gs per share were €5.73 <strong>in</strong> 2010 and €3.01 <strong>in</strong> 2009.<br />
4<br />
Includ<strong>in</strong>g extraord<strong>in</strong>ary <strong>in</strong>come<br />
5<br />
Includes the change <strong>in</strong> report<strong>in</strong>g from 2009 onward of the effects of regular extensions of U.S. dollar hedg<strong>in</strong>g transactions<br />
6<br />
Before external f<strong>in</strong>anc<strong>in</strong>g of pension obligations<br />
7<br />
After deduction of shares earmarked for cancellation
On the Cover<br />
The Amagasaki R&D Center is a research and development center where R&D for the Performance Products<br />
division is conducted and where technical service activities are consolidated. It jo<strong>in</strong>tly develops electronic<br />
materials and products, such as for LCD displays, with different bus<strong>in</strong>ess divisions for use <strong>in</strong> future products<br />
and is actively engaged <strong>in</strong> research for the energy management field, which is one of the five fields that <strong>BASF</strong><br />
has designated as a growth cluster and a field <strong>in</strong> which <strong>Japan</strong> leads the world. Currently, the research group at<br />
Amagasaki is particularly focused on the development of dye-sensitized solar cells, which are expected to be<br />
the next-generation solar cell. In cooperation with researchers at <strong>BASF</strong> headquarters <strong>in</strong> Germany, the research<br />
organization is work<strong>in</strong>g on everyth<strong>in</strong>g from design<strong>in</strong>g and synthesiz<strong>in</strong>g new dyes to fabricat<strong>in</strong>g and evaluat<strong>in</strong>g<br />
devices.<br />
Photo: Researchers evaluat<strong>in</strong>g an experimental solar cell that uses a new dye developed at the Amagasaki R&D Center.<br />
Sh<strong>in</strong>ji Nakamichi (front cover) and Risa Matsumoto (back cover) both from Performance Products ASJ/E, Performance<br />
Chemicals Research.