The BASF Group
At BASF, we create chemistry – and have been doing so for 150 years. As the world’s leading chemical company, we combine economic success with environmental protection and social responsibility. In the BASF Group, around 113,000 employees work on contributing to the success of our customers in nearly all sectors and almost every country in the world. Our broad portfolio is arranged into ﬁve segments: Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions and Oil & Gas.
BASF is the world’s leading chemical company
In 80+ countries
employees contribute to our success
85 strategic business units
Organization of the BASF Group
- 14 divisions grouped into five segments
- Regional divisions, corporate units and competence centers support our business
Until the end of 2014, five segments contained 14 divisions that managed and bore operational responsibility for our 65 global and regional business units. The divisions develop strategies for our 85 strategic business units and are organized according to sectors or products.
BASF structure until December 31, 2014 – Percentage of total sales in 2014 (in %) 1
1 The 5% of sales not shown belonged to Other.
As of January 1, 2015, we reorganized our paper chemicals business in order to sharpen our competitive edge. This involved dissolving the Paper Chemicals division and continuing the paper chemicals business in the Performance Chemicals and Dispersions & Pigments divisions. By doing so, we can utilize synergies along the existing value chains and at the same time remain a reliable, high-performing partner for the paper industry.
The regional divisions contribute to the local development of our business and help exploit market potential. They are also responsible for optimizing infrastructure for our business. For financial reporting purposes, our divisions are organized into the following four regions: Europe; North America; Asia Pacific; and South America, Africa, Middle East.
Three central divisions, six corporate units and ten competence centers provide services for the BASF Group in areas such as ﬁnance, investor relations, communications, human resources, research, engineering, and site management, as well as environment, health and safety.
Markets and sites
- BASF companies in more than eighty countries
- Six Verbund sites and 353 additional production sites worldwide
BASF has companies in more than eighty countries and supplies products to a large number of business partners in nearly every part of the world. In 2014, we achieved 44% of our sales (excluding Oil & Gas) with customers in Europe. In addition, 26% of sales were generated in North America; 21% in Asia Pacific; and 9% in South America, Africa, Middle East. Based on the entire BASF Group, 55% of our sales were to customers in Europe, 20% in North America, 17% in Asia Pacific and 8% in South America, Africa, Middle East.
We operate six Verbund sites as well as 353 additional production sites worldwide. Our Verbund site in Ludwigshafen is the world’s largest integrated chemical complex. This was where the Verbund concept was originally developed and steadily honed before being put into practice at additional sites.
- Intelligent plant networking in the Production Verbund
- Technology and Know-how Verbund
The Verbund system is one of BASF’s great strengths. Here, we add value as one company by using our resources efﬁciently. The Production Verbund, for example, intelligently links production units and energy demand so that heat released by production processes can be used as energy in other plants. Furthermore, by-products of one plant can serve as feedstock elsewhere. In this system, chemical processes run with lower energy consumption and higher product yield. This not only saves us raw materials and energy, it also avoids emissions, lowers logistics costs and makes use of synergies.
Another important part of the Verbund concept is the Technology and Know-How Verbund. Expert knowledge is pooled into our global research platforms.
BASF occupies one of the top three market positions in about 70% of the business areas in which it is active. Our most important global competitors include Akzo Nobel, Bayer, Clariant, Dow Chemical, DSM, DuPont, Evonik, Formosa Plastics, Lanxess, Reliance, Sabic, Sinopec, Solvay and many hundreds of local and regional competitors. We expect competitors from emerging markets to become increasingly signiﬁcant in the years ahead.
Corporate legal structure
As the publicly traded parent company of BASF Group, BASF SE takes a central role: Directly or indirectly, it holds the shares in the companies belonging to the BASF Group, and is also the largest operating company. The majority of Group companies cover a broad spectrum of our business. In some, we concentrate on speciﬁc business areas: The Wintershall Group, for example, focuses on oil and gas activities. In the BASF Group Consolidated Financial Statements, 274 companies including BASF SE are fully consolidated. We consolidate seven joint operations on a proportional basis, and 34 companies are accounted for using the equity method.
Compensation Report and disclosures in accordance with Section 315(4) of the German Commercial Code
The Compensation report and the disclosures required by takeover law in accordance with Section 315(4) German Commercial Code can be found under Corporate Governance. They form part of the Management’s Report audited by the external auditor.
Restatement of prior-year figures
The figures reported for the 2013 business year and the first three quarters of 2014 have been restated following BASF’s and Gazprom’s decision on December 18, 2014, not to proceed with an asset swap planned for the end of 2014. This made it necessary to dissolve the disposal group to which the affected assets and liabilities had been reclassified in the financial statements at the end of 2012.
In the Notes to the Consolidated Financial Statements