An area of biotechnology that uses microorganisms and/or enzymes to produce chemical products, utilized in many levels of the value-adding chain in the chemical industry. This involves, for example, the biotechnological production of enzymes and chirale intermediates.

In the BASF Verbund, production facilities, energy flow, logistics and infrastructure are intelligently networked with each other, in order to increase production yields, save resources and energy and reduce logistic costs. A significant factor in the Verbund concept is the Know-how Verbund. In the latter, know-how is shared among BASF employees worldwide and expert knowledge is pooled in research platforms.

Traits are the genetic properties of plants, such as drought and disease resistance or higher yields.

Toluene diisocyanateis a starting material for the production of polyurethane.

Tetrahydrofuran is a starting compound for Polytetrahydrofuran (PolyTHF^® ), a component for the production of elastic fibers.

An agreement between two parties to exchange goods or payment flows in the future. In an interest swap, a fixed (variable) interest rate is exchanged for a floating (fixed) rate for an agreed nominal amount.

The production of the precursor styrene is primarily for captive use (backward integration). Styrenics are used in many areas, for example, in the construction, packaging, automotive, electrical and leisure industries.

The objective of sustainable development is to meet the economic, environmental and social needs of society without harming the development opportunities of future generations.

A plant in which steam is used to “crack” naphtha (petroleum) or natural gas. The resulting petrochemicals – above all, ethylene and propylene – are the starting materials used to manufacture most of BASF’s products.

The term refers to persons or groups whose interests are interlinked with those of a company in a variety of ways. BASF’s stakeholders include shareholders, business partners, employees, neighbors and society.

A market where an agreed deal including delivery, acceptance and payment occurs immediately. In contrast to forward contracts where the delivery, acceptance and payment occurs at a point in time after the conclusion of the deal.

One-time charges or one-time income that significantly affect the earnings of a segment or the BASF Group. Special items include, for example, charges arising from restructuring measures or earnings from divestitures.

The social business BASF Grameen Ltd. serves a social purpose. It should cover its own costs and recoup the partners’ initial investment. Any additional profits are reinvested fully in the social business.

These are crop protection products applied with specific technologies directly on the seed and thus protect crops in the emerging stages against diseases and harmful insects.

This describes the return we make on the average assets employed during the year. It is calculated as income from operations (EBIT) plus interest expenses as a percentage of average assets.

There are two applications for generated profits: distribution to shareholders or retention in the company.

A worldwide initiative by the chemical industry to continuously improve its performance in the fields of environmental protection, health and safety.

An E.U. regulatory framework for the registration, evaluation and authorization of chemicals.

New or improved products and applications, which have been on the market for less than five years.

THF stands for tetrahydrofuran and is a starting compound for Polytetrahydrofuran (PolyTHF^® ), an important component for the production of elastomer fibers for textiles. Elastomer fibers are used in sports clothing, for example.

The payout ratio shows what proportion of earnings is distributed in the form of a dividend. It is calculated by dividing the total dividend paid by net income and multiplying by 100.

The Patent Asset Index measures the strength of a company’s patent portfolio. It is made up of two factors: (1) “portfolio size” (the number of worldwide active patent families) and (2) “competitive impact,” which is the combination of technology relevance and market coverage.

The “Organic Electronics Forum” cluster of excellence is a collaborative network of companies, research institutes and universities which is sponsored by the German Federal Ministry for Education and Research.

The Occupational Health and Safety Assessment Series (OHSAS) comprises, among other things, the standard OHSAS 18001 which includes a management system for occupational safety. This system can be integrated into an existing quality and environmental protection management system and certified accordingly.

The Organization for Economic Cooperation and Development is an international body, headquartered in Paris, France.

Liquid petroleum that is produced during oil refining. Heavy naphtha is the starting point for gasoline production. Light naphtha is the most important feedstock for steam crackers.

Characterization, generation and utilization of structures and systems that are smaller than one hundred nanometers.

MRFs are liquids that exhibit adjustable flow behavior. Using an external magnetic field, the flow properties of MRF can be varied from solid to liquid in milliseconds. They are particularly suitable for applications in which power has to be controlled and transmitted on a continuous, variable basis.

Monitoring systems and tools serve to measure and ensure the adherence to standards. The objective of monitoring is, among other things, voluntary commitments such as the adherence to human rights and internationally recognized labor standards.

The MEA is the core of a fuel cell. This is where hydrogen and air react to form water, generating electrical energy and heat in the process.

MDI stands for diphenylmethane diisocyanate and is one of the most important raw materials for the production of the plastic polyurethane. This plastic is used for applications ranging from the soles of high-tech jogging shoes, to car shock-absorbers, refrigerator insulation and even insulation for buildings.

The materiality matrix identifies and evaluates societal interest as well as the potential impact of sustainability topics for BASF. The aim is to develop strategies for addressing potential new risks and opportunities at an early stage. A detailed examination of stakeholder expectations forms the basis of this analysis.

ISO 19011 is an international standard developed by the International Organization for Standardization (ISO) that determines requirements for audits of quality management and environmental management systems.

ISO 14001 is an international standard developed by the International Organization for Standardization (ISO) that determines the general requirements for an environmental management system for voluntary certification.

ISAE 3000 is published by the International Audit and Assurance Standards Board (IAASB). It provides guidelines for comprehensive audits, which contain non-financial data, for example for the audits of sustainability reports.

International Financial Reporting Standards (until 2001: International Accounting Standards, IAS) are developed and published by the International Accounting Standards Board (IASB) headquartered in London, United Kingdom. In accordance with the IAS Regulations, IFRS are mandatory for listed companies headquartered in the European Union since 2005.

International Accounting Standards (see also IFRS)

The International Financial Reporting Interpretations Committee is a committee that publishes proposed guidance on IFRS and IAS.

Technology to produce propylene oxide (PO) from hydrogen peroxide (HP). HPPO technology is more environmentally friendly and economically viable than conventional PO methods of production, because no by-products are produced besides water. PO is an intermediate, for example, in the production of polyurethane.

BASF has brought together its research activities related to the important technology-driven issues of the future into five growth clusters: energy management, raw material change, plant biotechnology, nanotechnology and white (industrial) biotechnology.

Goodwill is a term used to describe a company’s value. It represents the difference between the actual value of a company’s assets and the purchase price paid. Because goodwill takes potential earnings into account, it may exceed the book value.

Cash provided by operating activities less payments related to property, plant and equipment and intangible assets.

Term for the installation of production facilities and the drilling of production wells for the commercial exploitation of oil and natural gas deposits.

Fermentation is a process in which biological materials are broken down with the aid of microorganisms such as bacteria, fungi or cell cultures.

To investigate and explore an area in the search for mineral resources such as crude oil or natural gas. The exploration process involves using suitable geophysical processes to find structures that may contain oil and gas then proving a possible find by means of exploratory drilling.

The European Water Partnership was founded in 2006 as an independent non-profit organization to promote sustainable water management. It serves as a discussion forum, promotes partnerships as well as the exchange of information among relevant stakeholders, and initiates and coordinates initiatives.

An Exploration and Production Sharing Agreement is the prevalent type of contract between a national oil company and an international oil company in the exploration and production of hydrocarbons.

This analysis allows both economic and environmental aspects to be considered when developing and optimizing products and processes. The aim is to offer the best possible cost-effective products with good environmental performance.

This is the margin that we earn on sales from our operating activities before depreciation and amortization. It is calculated as income from operations before depreciation and amortization as a percentage of sales.

Earnings before Interest, Taxes, Depreciation and Amortization. At BASF, EBITDA corresponds to the income from operations before depreciation and amortization.

The EBIT after cost of capital is calculated by deducting the cost of capital from the operating income earned by BASF’s operating divisions. If the EBIT after cost of capital has a positive value, BASF has earned a premium on the expected return of its providers of debt and equity. The EBIT after cost of capital is the key performance and management indicator at BASF.

Earnings before Interest and Taxes. At BASF, EBIT corresponds to the income from operations.

The dividend yield is the return received by a shareholder in the form of a dividend in relation to the year-end share price. It is calculated by dividing the per-share dividend by the year-end share price and multiplying by 100.

An international standard for comparing the thermal energy of different fuels. A BOE is the equivalent of one barrel of crude oil or 6,000 cubic feet or 169 cubic meters of natural gas.

A confirmed line of credit that can be drawn upon in connection with the issue of commercial paper if market liquidity is not sufficient or for the purpose of general corporate financing. It is one of the instruments BASF uses to ensure it is able to make payments at all times.

Compliance is an important element of corporate governance. It refers to the company’s behavior in accordance with laws, guidelines and voluntary codices.

Audits are a strategic tool for managing safety and environmental protection standards. During a site or plant audit, a profile is created using clearly defined environmental, safety or health criteria.

A framework agreement between BASF and banks regarding the issuing of debt obligations on the financial market (commercial paper). The commercial paper is issued under a rolling program for which the terms can be determined individually. A prerequisite for this is a good rating.

A parameter to describe the effect of greenhouse gas emissions. A factor known as the global warming potential (GWP) shows the effect of the individual gases compared with CO₂ as the reference value.

This term covers all processes and products that use living organisms, for example bacteria and yeasts, or their cellular constituents. Plant biotechnology and white biotechnology belong to the five growth clusters of BASF.

Delayed adjustment of natural gas prices to the movement in oil prices.

Successive steps in a production process, from the raw materials through various intermediate steps to the finished product.