4 – Reporting by segment and region

BASF optimized its organizational structure effective January 1, 2013. Since this date, BASF’s business has been conducted by 14 (previously 15) operating divisions aggregated into five (previously six) segments for reporting purposes. The divisions are allocated to the segments based on their business models. The Plastics segment has been dissolved; its businesses with high-volume products and basic polymers have been integrated into the Chemicals segment, and the businesses with innovative plastics have been bundled into the new Performance Materials division in the Functional Materials & Solutions segment. The previous year’s figures have been adjusted to match the new organizational structure.

The Chemicals segment comprises the classical chemicals business with basic chemicals and intermediates. It forms the core of BASF’s Production Verbund and is the starting point for a majority of the value chains. In addition to supplying the chemical industry and other sectors, the segment ensures that other BASF divisions are supplied with chemicals for producing down stream products. Chemicals comprises the Petrochemicals, Monomers and Intermediates divisions.

The Performance Products segment consists of the Dispersions & Pigments, Care Chemicals, Nutrition & Health, Paper Chemicals and Performance Chemicals divisions. Customized products allow customers to make their production processes more efficient or to give their products improved application properties.

The Functional Materials & Solutions segment groups together system solutions, services and innovative products for specific sectors and customers, in particular for the automotive, electrical, chemical and construction industries. It comprises the Catalysts, Construction Chemicals, Coatings and Performance Materials divisions.

Agricultural Solutions is made up of the Crop Protection division, whose products guard crops against fungal infections, insects and weeds, and secure yields as well serve as biological seed treatments. Plant biotechnology research is not assigned to this segment; it is reported in Other.

The Oil & Gas segment is composed of the Oil & Gas division with its Exploration & Production and Natural Gas Trading business sectors.

Activities not assigned to a particular division are reported in Other. These include the sale of raw materials, engineering and other services, rental income and leases.

With crossdivisional corporate research, BASF is developing growth fields and ensuring its long-term competence with regard to technology and methods. This includes plant biotechnology research. Corporate research costs are not allocated to the segments, but are reported under Other, as are corporate costs that comprise expenses for the steering of the BASF Group.

Earnings from currency conversion that are not allocated to the segments are also reported under Other, as are earnings from the hedging of raw material prices and foreign currency exchange risks. Furthermore, revenues and expenses from the long-term incentive (LTI) program are reported here.

Transfers between the segments are generally executed at market-based prices. Assets, as well as their depreciation and amortization, are allocated to the segments based on economic control. Assets used by more than one segment are allocated based on the percentage of usage.

  (XLS:) Download (xls, 22 kB)

Income from operations (EBIT) of Other (million €)

 

2013

2012

Corporate research costs

(386)

(391)

Costs of the corporate headquarters

(237)

(255)

Other businesses

251

871

Foreign currency results, hedging and other measurement effects

(190)

(454)

Miscellaneous income and expenses

(102)

14

Income from operations of Other

(664)

(215)

The decline in income from operations in Other is mainly attributable to the fact that it contained gains of €645 million on the disposal of the fertilizer business in 2012.

The year-on-year improvement in foreign currency results, hedging and other measurement effects resulted mainly from reduced expenses arising from the long-term incentive program in 2013. At €104 million, they were €195 million lower than in the previous year. Furthermore, income rose from foreign currency translation and hedging transactions.

  (XLS:) Download (xls, 22 kB)

Assets of Other (million €)

 

2013

2012

Assets of businesses included in Other

3,351

3,152

Financial assets

630

613

Deferred tax assets

992

1,473

Cash and cash equivalents/marketable securities

1,832

1,661

Defined benefit assets

47

41

Miscellaneous receivables/prepaid expenses/
assets of the disposal group not allocated to operations

2,416

1,845

Assets of Other

9,268

8,785

  (XLS:) Download (xls, 22 kB)

Reconciliation reporting Oil & Gas (million €)

 

2013

2012

Income from operations

2,516

1,676

Income from shareholdings

(2)

(8)

Other income

71

(122)

Income before taxes and minority interests

2,585

1,546

Income taxes

(673)

(181)

Income before minority interests

1,912

1,365

Minority interests

(132)

(164)

Net income

1,780

1,201

The reconciliation reporting Oil & Gas reconciles the income from operations in the Oil & Gas segment with the contribution of the segment to the net income of the BASF Group.

The improvement in income from operations resulted primarily from the reclassification of GASCADE Transport GmbH, Kassel, Germany, and a special income related to the sale of a 15-percent share in the Edvard Grieg development project in return for the acquisition of assets from Statoil ASA. Due to low, partly regulated local gas prices, price compensations for gas producers were introduced in Argentina as part of the New Gas Price Scheme (NGPS). This led to an increase in Other operating income in 2013.

The Oil & Gas segment’s other income relate to income and expenses not included in the segment’s income from operations, the interest result as well as the other financial result. The year-on-year increase is mostly attributable to currency effects.

The tax rate increase was largely the result of high tax credits in the previous year related to impairment charges on a Norwegian oilfield development project.

Enlarge
(XLS:) Download (xls, 23 kB)

Segments 2013 (million €)

 

Chemicals

Performance Products

Functional Materials & Solutions

Agricultural Solutions

Oil & Gas

Thereof Exploration & Production

Other

BASF
Group

Sales

16,994

15,534

17,252

5,227

14,776

2,929

4,190

73,973

Intersegmental transfers

6,388

489

835

36

1,160

305

53

8,961

Sales including intersegmental transfers

23,382

16,023

18,087

5,263

15,936

3,234

4,243

82,934

Income from operations

2,086

1,100

1,027

1,208

2,516

1,659

(664)

7,273

Assets

10,908

13,614

11,899

6,777

11,916

7,731

9,268

64,382

Thereof goodwill

56

1,967

2,032

1,796

959

959

62

6,872

intangible assets

256

1,818

1,331

364

1,529

1,527

65

5,363

property, plant and equipment

5,383

4,154

2,722

925

4,213

3,314

857

18,254

Debt

3,122

4,078

2,751

1,374

3,099

2,207

22,169

36,593

Research and development expenses

178

377

367

469

53

53

391

1,835

Additions to property, plant and equipment and intangible assets

1,958

1,497

611

324

2,954

2,834

169

7,513

Amortization of intangible assets and depreciation of property, plant and equipment

870

887

471

167

628

474

131

3,154

Thereof impairments

95

58

20

1

54

54

10

238

Enlarge
(XLS:) Download (xls, 24 kB)

Segments 2012 (million €)

 

Chemicals

Performance Products

Functional Materials & Solutions

Agricultural Solutions

Oil & Gas

Thereof Exploration & Production

Other

BASF
Group

Sales

17,887

15,713

17,049

4,679

12,740

2,584

4,061

72,129

Intersegmental transfers

5,947

457

419

29

1,104

3

112

8,068

Sales including intersegmental transfers

23,834

16,170

17,468

4,708

13,844

2,587

4,173

80,197

Income from operations

2,173

1,276

806

1,026

1,676

1,187

(215)

6,742

Assets

10,559

13,457

12,146

6,527

11,252

5,766

8,785

62,726

Thereof goodwill

70

1,906

2,161

1,870

325

325

52

6,384

intangible assets

180

1,858

1,527

424

1,759

1,740

61

5,809

property, plant and equipment

4,693

3,867

2,455

785

4,042

1,727

768

16,610

Debt

3,600

4,355

3,182

1,485

3,199

1,370

21,284

37,105

Research and development expenses

184

345

348

430

32

32

393

1,732

Additions to property, plant and equipment and intangible assets

1,324

764

760

1,054

1,172

768

189

5,263

Amortization of intangible assets and depreciation of property, plant and equipment

848

814

557

156

769

588

123

3,267

Thereof impairments

38

95

200

200

2

335

  (XLS:) Download (xls, 23 kB)

Regions 2013 (million €)

 

Europe

Thereof Germany

North America

Asia Pacific

South America, Africa, Middle East

BASF
Group

Location of customers

 

 

 

 

 

 

Sales

41,221

14,446

14,272

12,450

6,030

73,973

Share (%)

55.7

19.5

19.3

16.8

8.2

100.0

Location of companies

 

 

 

 

 

 

Sales

43,335

31,571

14,573

11,679

4,386

73,973

Sales including interregional transfers

50,307

36,984

17,025

12,188

4,580

84,100

Income from operations

4,598

2,189

1,488

817

370

7,273

Assets

39,016

22,022

12,683

8,797

3,886

64,382

Thereof property, plant and equipment

10,968

5,784

3,740

2,476

1,070

18,254

Additions to property, plant and equipment and intangible assets

5,586

1,766

782

696

449

7,513

Amortization of intangible assets and depreciation of property, plant and equipment

2,083

1,075

663

300

108

3,154

Employees as of December 31

70,977

52,523

16,996

16,708

7,525

112,206

  (XLS:) Download (xls, 23 kB)

Regions 2012 (million €)

 

Europe

Thereof Germany

North America

Asia Pacific

South America, Africa, Middle East

BASF
Group

Location of customers

 

 

 

 

 

 

Sales

39,428

15,210

13,992

12,546

6,163

72,129

Share (%)

54.7

21.1

19.4

17.4

8.5

100.0

Location of companies

 

 

 

 

 

 

Sales

41,445

29,320

14,441

11,694

4,549

72,129

Sales including interregional transfers

48,263

34,775

16,899

12,161

4,744

82,067

Income from operations

4,557

2,249

969

855

361

6,742

Assets

36,782

22,431

13,301

8,751

3,892

62,726

Thereof property, plant and equipment

9,880

6,399

3,720

2,183

827

16,610

Additions to property, plant and equipment and intangible assets

2,570

1,557

1,838

539

316

5,263

Amortization of intangible assets and depreciation of property, plant and equipment

2,166

1,080

662

332

107

3,267

Employees as of December 31

70,638

52,362

16,665

16,406

7,073

110,782