Management’s Report

The BASF Group

At BASF, we create chemistry for a sustainable future. As the world’s leading chemical company, we combine economic success with environmental protection and social responsibility. The approximately 112,000 employees in the BASF Group work on contributing to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is arranged into five segments: Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions and Oil & Gas.

Our Strategy

With the “We create chemistry” strategy, BASF has set itself ambitious goals in order to strengthen its position as the world’s leading chemical company. We want to contribute to a sustainable future and have embedded this into our corporate purpose: “We create chemistry for a sustainable future.”

• Focus Areas
• Global Standards
• Business Expansion in Emerging Markets
• Goals
• Value-Based Management
• Sustainability Management

Innovation

Innovations based on effective and efficient research and development are an important growth engine for BASF. We work in interdisciplinary teams on innovative processes and products for a sustainable future. This is how we ensure our long-term business success with chemistry-based solutions for almost all sectors of industry.

• Research Focus Areas
• Innovation in the Segments

Investments, Acquisitions, Divestitures

In addition to innovations, investments and acquisitions make a decisive contribution toward achieving our ambitious growth goals. We are intensifying our investment in emerging markets and in North America. We use targeted acquisitions to supplement our organic growth.

Business Models and Customer Relations

BASF’s customer portfolio ranges from major global customers and medium-sized businesses to local workshops. We align our business models and sales channels with the respective customer groups and market segments. In line with our strategic principle, “We add value as one company,” we tightly bundle our products and services to target the specific needs of customers from various sectors and release innovations more quickly to the market.

Working at BASF

Our employees are fundamental to achieving the goals of the “We create chemistry” strategy. We want to attract and retain talented people for our company and support them in their development. To do so, we cultivate a working environment that inspires and connects people. It is founded on inclusive leadership based on mutual trust, respect and dedication to top performance.

• Competition for Talent
• Training
• Demographic Change
• Diversity
• Expectations of Our Leaders
• Compensation and Benefits
• Dialog
• Labor and Social Standards

Social Commitment

We take on social responsibility: We are involved in diverse projects worldwide, especially in the communities where our sites are located. Our main focus is on access to education. In this way, we promote innovative capacity and future viability.

BASF Group Business Year

The BASF Group Business Year comprises the chapters on the Economic Environment, Results of Operations, Net Assets and Financial Position.

• Economic Environment
• Results of Operations
• Net Assets
• Financial Position

Segments

BASF’s five segments: Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions and Oil & Gas

• Chemicals
• Performance Products
• Functional Materials & Solutions
• Agricultural Solutions
• Oil & Gas

Regional Results

The regional results describe the development in the four regions Europe, North America, Asia Pacific and South America, Africa, Middle East.

Responsibility Along the Value Chain

• Suppliers
• Raw Materials
• Safety, Security, Health and the Environment

Forecast

The Forecast comprises the Opportunities and Risks Report as well as the chapters on the Economic Environment and Outlook for 2016.

• Opportunities and Risks Report
• Economic Environment
• Outlook