Segment Profile Divisions Catalysts Automotive and process catalysts, battery materials, precious metal trading Construction Chemicals Solutions for building structure  and envelopes, interior construction  and infrastructure Coatings Coatings solutions, surface treatments,  decorative paints Performance Materials Polyurethanes, thermoplastics and foams Sales Factors influencing sales Income from operations before special items Million € How we create value – an example Novel diesel oxidation catalyst (DOC) Efficient design for removing hydrocarbons and carbon monoxide with lower consumption of precious metals Value for BASF Enabled business wins since first introduction in 2015 with a value of >€700 million Value for our customers and the environment Meets the latest emission regulations while reducing precious metal consumption by ≥25% Diesel oxidation catalysts (DOC) reduce the emissions of heavy duty diesel engines by removing hydrocarbons and carbon monoxide from the exhaust. Furthermore, they provide the functionality to facilitate the removal of soot and nitrogen oxides by the downstream soot filter and the selective catalytic reduction catalyst. BASF has developed a novel DOC design to better utilize the precious metals of such catalysts, while significantly improving the catalysts’ performance. Since its first introduction in 2015, the technology has been continuously further developed and has enabled business wins of more than €700 million. The novel DOC design is used on-road in all major markets and thus provides a significant benefit for air quality and fuel economy. With our DOC catalyst in the front of the emission control system, it is possible to meet the most stringent of current emission control regulations such as US HDD 2010 (United States), EUVI (Europe), NSVI (China) and BSVI (India). The technology not only reduces precious metal consumption by at least 25%, but also significantly broadens the temperature region to implement removal of soot and prevent build-up of back pressure on the engine, thereby reducing fuel consumption. Strategy Development of innovative products and technologies in close collaboration with our customers Focus on specialties and system solutions that allow our customers to stand out from the competition We develop innovative products and technologies in close cooperation with our customers. Our aim is to find the best solution in terms of cost and functionality, helping our customers to drive forward innovation in their industries and contribute to sustainable development. For instance, the transformation of mobility is a key trend in the automotive industry. To address this, we are developing solutions in the areas of battery materials, emission control, lightweight engineering concepts and coatings together with our customers. Our specialties and system solutions enable customers to stand out from the competition. We aim to continuously optimize our product and services portfolio and our structures according to different regional market requirements as well as trends in our customer industries. The focus is on securing our leading market position in Europe, profitably expanding our position in the North American market and purposefully extending our activities in the growth regions of Asia, South America, eastern Europe and the Middle East. New business fields such as battery materials play a particularly important role here. On October 22, 2018, we announced that Harjavalta, Finland, will be the location of our first site to produce battery materials for the European automotive market. The plant will be constructed adjacent to the nickel and cobalt refinery owned by Norilsk Nickel (Nornickel). BASF and Nornickel have signed a long-term, market- based supply agreement for nickel and cobalt from Nornickel’s metal refinery. With the investment, BASF will be present in all major regions with local production and increased customer proximity. On September 18, 2017, we signed an agreement with Solvay on the acquisition of Solvay’s integrated polyamide business. More information on the current status of the agreement with Solvay We are also evaluating strategic options for our construction chemicals business to ensure the successful and profitable development of the business area in the long term, and to take advantage of opportunities in the market. The outcome of this review is open. We are considering the possibility of merging with a strong partner as well as the option of a divestiture. We strive to sign an agreement in 2019. back next