Goals

In 2011, we set ourselves sales and earnings goals for 2015 and 2020 as part of the “We create chemistry” strategy. The application of International Financial Reporting Standards 10 and 11 as of January 1, 2013, translates into lower reported sales and income from operations for the BASF Group. We have therefore adjusted our sales goals for 2015 and 2020 by €5 billion each and our EBITDA goals by €1 billion each. We reduced the yearly goal for the premium on our cost of capital from €2.5 billion to €2 billion. The goal for earnings per share in 2015 remained unchanged.

Adjustments do not yet include the asset swap with Gazprom that will be completed in 2014 with retroactive financial effect as of April 1, 2013. The transaction comprises the divestiture of the gas trading and storage business as well as shares in production activities in the North Sea. In 2012, these activities contributed around €10 billion to sales and around €500 million to the EBITDA of the BASF Group. In return, we will receive 25% plus a share in two additional Achimov Formation blocks in Western Siberia.

Our goals are based on the assumption that global gross domestic product will grow by an annual average of 3% from 2010 to 2020 and worldwide chemical production by 4% each year. We aim to grow two percentage points faster than global chemical production every year.

Growth and profitability

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Annual goals

2015 Goals

2020 Goals

Status at year-end 2013

Sales

 

Approx. €80 billion

Approx. €110 billion

€74.0 billion

Premium on cost of capital

At least €2.0 billion on average each year

 

 

€1.9 billion

EBITDA

 

Approx. €14 billion

Approx. €22 billion

€10.4 billion

Earnings per share

 

Around €7.50

 

€5.27

EBITDA 2013 (graphic)


EBITDA (billion €)

Employees

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Long-term goals

Status at year-end 2013

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International proportion of senior executives

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

35.0%

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Senior executives with international experience

Proportion of senior executives with international experience over 80%

81.6%

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Women in executive positions

Increase in the proportion of female executives worldwide

18.5%

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Employee development

Establishment of employee development as a responsibility shared by employees and leaders based on relevant processes and tools

The project has been implemented for around 40,000 employees worlwide

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Executives (icon)

Senior executives

Proportion of senior executives with international experience (Goal: over 80%)

Safety, security and health

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2020 Goals

Status at
year-end 2013

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Transportation

 

 

 

Transportation accidents per 10,000 shipments (baseline 2003)

–70%

–61%

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Production

 

 

 

Lost time injuries per million working hours (baseline 2002)

–80%

–58%

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Health Performance Index (annual goal)

>0.9

0.89

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Products

 

 

 

Risk assessment for all products sold worldwide by BASF in quantities of more than one metric ton per year

>99%

56%

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Transportation safety (icon)

Transportation safety

Transportation accidents per 10,000 shipments, baseline 2003 (2020 goal: –70%)

Environment

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2020 Goals

Status at
year-end 2013

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1

Excluding oil and gas production

Energy and climate protection

 

 

 

Improvement of energy efficiency in production processes1 (baseline 2002)

+35%

+19.8%

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Greenhouse gas emissions per metric ton of sales product1 (baseline 2002)

–40%

–34.0%

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

100%

100%

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Greenhouse gas emissions per amount and distance of transported gas (baseline 2010)

–10%

–9.0%

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Water

 

 

 

Emission of organic substances to water1 (baseline 2002)

–80%

–78.5%

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Emission of nitrogen to water1 (baseline 2002)

–80%

–86.8%

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Emission of heavy metals to water1 (baseline 2002)

–60%

–64.2%

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Withdrawal of drinking water for production (baseline 2010)

–50%

–25.3%

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Introduction of sustainable water management at production sites in water stress areas

100%

11.1%

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Air

 

 

 

Emission of air pollutants1 (baseline 2002)

–70%

–62.2%

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Water (icon)

Water

Introduction of sustainable water management at production sites in water stress areas (2020 goal: 100%)