2 BASF worldwide sitesAround 105,000 employees of the BASF Group help to make customers from nearly all sectors and almost every country in the world become more successful. Our portfolio ranges from chemicals, plastics and performance products to agricultural products, fine chemicals as well as oil and gas.BASF has subsidiaries in more than eighty countries and supplies products to a large number of business partners in nearly every part of the world. We operate six Verbund sites and approximately 380 other production sites worldwide. Our Verbund site in Ludwigshafen is the largest integrated chemical complex in the world that belongs to a single company. This was where the Verbund concept was developed and optimized before it was applied to other sites around the world. The Verbund concept also includes an Energy Verbund and a Know-How Verbund. In the latter, know-how is shared among BASF employees worldwide. Expert knowledge is pooled in our technology platforms and Competence Centers.INTERNET: basf.com/global_e
3 BASF in Asia Pacific Customers in more than 15 countries Approx.15,000 employees105 companies, of which 43 JVs124 production sites13 R&D sitesSales* in 2009: Approximately €8.7 billionChinaS. KoreaJapanPakistanBangladeshTaiwanHong KongThailandIndiaVietnamPhilippinesSri LankaMalaysiaSingaporeBASF has a significant presence in Asia Pacific, with more than 100 companies in the region, more than 100 production sites and 13 research and development sites in 15 countries.IndonesiaRegional headquartersVerbund siteMajor chemical production site*AustraliaAsia Pacific service centerR&D center*# Due to the close proximity of some production sites,a dot may represent more than one site.* By location of customerData as of December 2009New Zealand
4 BASF is growing in and with Asia Pacific Acquisitions and investments2005 Inauguration of Verbund* site in Nanjing2001 Inauguration of Verbund* site in Kuantan1989 Business started in Malaysia1988 First production in Japan1982 Ulsan site started in South Korea1966 First production in ChinaBASF has a strong and ongoing commitment to the Asia Pacific region.We started doing business in the Asia Pacific region more than 100 years ago. Today, we are one of the largest foreign investors in the region. In Asia Pacific in particular, we provide answers to many of the urgent questions that arise from a fast-growing population: demand for more energy, more housing, more food and more products for daily life.Our largest presence is in China, with significant presence in Japan, Korea, India and the ASEAN region. Our two Asian Verbund sites, or integrated production sites, were inaugurated in Kuantan, Malaysia, in 2001, and Nanjing, China, in Over the past several years, the acquisitions and investments all add to our portfolio in the Asia Pacific region.1954 First business contact in South Korea1890 First business contact in India1888 First business contact in Japan1885 First business contact in China*An integrated production complex where the manufacturing plants are interconnected to ensure that products, by-products and energy are used efficiently and intelligently and that costs and environmental impact are minimized.
5 BASF Asia Pacific: Sales* by segment 2009 million €(change compared with previous year)Others1,261 (-19%)Oil & Gas135 (-11%)AgriculturalSolutions 378 (+20%)Chemicals1,684 (-16%)Performance Products1,923 (+40%)Plastics2,180 (-9%)Functional Solutions 1,146 (-25%)25%22%13%4%2%15%19%Sales by location of customer in Asia Pacific amounted to €8.7 billion compared with €9.3 billion in In Asia Pacific, sales by location of company declined €667 million to approximately €8.0 billion in The decrease in local currency terms was 11%. Sales increased in the Agricultural Solutions and Performance Products segments, but were lower in the Chemicals, Plastics and Functional Solutions segments. Thanks to portfolio optimization and successful cost reduction measures, income from operations (EBIT) rose by €249 million to €503 million.Sales in Plastics remain the mainstay of sales in Asia Pacific, at 25% of total sales in the region. Some segments showed increases in sales such as Performance Products and Agricultural Solutions which improved significantly by 40% and 20% respectively. The remaining segments saw declines in sales, with sales from Functional Solutions falling sharply by 25%, Chemicals taking a 16% and 11% dip from last year.*Based on sales by location of customer - figures may vary due to rounding
6 BASF Asia Pacific: Sales* by sub-region 2009 million €(change compared with previous year)Greater China4,126 (-2%)Korea779 (-1%)ANZ339 (-2%)ASEAN1,371 (-10%)Japan 1,207 (-22%)South Asia 843 (0%)Others40 (N/A)After a slow start given the ongoing financial crisis, we still managed to achieve solid sales figures in the region.Greater China, which includes Taiwan and Hong Kong, remained the leader in sales in Asia Pacific, accruing €4.1 billion. It accounted for 47 per cent of total sales in the region, with a 2 percent decrease compared to the previous year.ASEAN and Japan amounted for €1.4 billion and €1.2 billion respectively, representing the second and third largest contributors to Asia Pacific’s sales. Sales generally decreased in the region, except for South Asia remained unchanged. Japan experienced a 22% decline from the previous year while Korea and ANZ decreased slightly by 1% and 2% respectively.*Based on sales by location of customer - figures may vary due to rounding.*Kazahkstan is not included.
7 BASF aims to grow above market: Asia Pacific sales to double by 2020 Strengthen our market focus through Industry and Customer Target Groups.Develop and market innovations in Asia for Asia.Invest in organic growth in Asia to achieve 70% of our sales based on local production.Improve operational excellence in Asia.Build the best team in the industry.BASF has been a committed partner to Greater China since 1885 and is one of the biggest foreign investors in the Chinese chemical industry.World-scale Verbund site in Nanjing, ChinaA joint venture between BASF and SINOPEC, the site consists of a steam cracker supplying nine world-scale downstream plants with a combined annual production capacity of 2.0 million metric tons of high-quality chemicals and polymers, with a total capital investment of $2.9 billion. This is the largest single investment in BASF’s history. In September 2009, BASF and SINOPEC broke ground on an expansion with a total investment of $1.4 billion. This investment includes the expansion of the existing steam cracker and of three existing plants, as well as the construction of 10 new chemical plants.World-scale MDI/TDI complex in Shanghai, ChinaBASF has established two joint ventures with Huntsman and several Chinese partners to produce TDI and MDI at the Shanghai Chemical Industry Park in Caojing, Shanghai. TDI and MDI are key components for the production of polyurethanes, which are used in the automotive and construction industries and in products such as refrigerators, upholstery, mattresses and footwear. The total investment in the project was $1 billion and commercial production started in mid-2006.
8 We innovate for growth: R&D activities in Asia Pacific YokkaichiShanghaiIndiaIn 2010, BASF expects global annual sales of €4 billion from product innovations alone.As of the end of 2009 in Asia Pacific, around 400 employees across 13 R&D sites work closely with customers to offer innovative and customized solutions.Greater China around 200 (thereof 40 in Taiwan); India around 60; Japan around 50; Singapore around 40; other countries around 15 (all are approximate numbers). These sites are integrated to BASF’s global technology platforms - Polymer Research, Specialty Chemicals Research, Chemicals Research & Engineering, and Plant Biotechnology Research and form the heart of the R&D Know-how Verbund.In addition to these R&D facilities, there are also application development facilities related to specific business units in Asia Pacific, employing about 700 specialists.Together they showcase BASF’s competence in bridging cross geographical, technical & intellectual boundaries to meet local market needs.Milestones in 2009:IndiaClosely collaborated with Tata Motors in the supply of products and engineering solutions for its new Nano automobile.ChinaStrategic partnership signed with the Chongqing Municipal Construction Commission to drive the development of building energy efficiency in the city.Chinese government approved the expansion of the Nanjing joint venture chemical site with SINOPEC.Smart Dynamic Concrete™ concept introduced to support and advance theme of sustainable construction.New decorative paint additive NORBIN™ launched to meet the needs of green buildings in China.Awarded the "Prestigious Catalysts Supplier Award“ in recognition of continuous innovation, optimization and improvement for process catalyst applications.JapanMasqueradea™, a patent-pending technology, launched as the world's first specialty coating combining metallic and premium deep colors in one coating.An innovative photoinitiator from BASF received the Chemical Society of Japan Award for Technical Development: IRGACURE® OXE02 is used for producing resin black matrix for LCD color filtersKoreaSteam boiler plant with the latest clean air technology opened for the manufacture of polyurethanes.Research cooperation and license agreement signed between BASF Plant Science, Genomine, a South Korean venture company, and POSTECH, a South Korean university on the discovery of genes that help maximize yields in staple food and feed crops.ASEANIn cooperation with the Malaysian Agricultural Research & Development Institute (MARDI) a rice variety containing the clearfield gene was developed to address the growing red rice weed problem in Malaysia.Through the BASF Plant Science group company, DNA LandMarks signed an collaborative agreement with BiotechCorp and the Malaysian Agricultural Research & Development Institute (MARDI) to create laboratory facilities at MARDI to boost the competitiveness of Malaysian agriculture through modern breeding technologies.A pilot project with The National Innovation Agency, German Technical Cooperation and Thai Bioplastics Industry Association demonstrated the use of biodegradable plastic bags to collect household organic waste and has instigated the future development of composting facilities in Thailand.ThaneSingapore
9 Sub region: Greater China 23 wholly owned subsidiaries16 joint ventures38 production sitesApproximately 6,500 employeesSales* in 2009: more than €4.1 billion4 R&D sitesBASF has been a committed partner to Greater China since 1885 and is one of the biggest foreign investors in the Chinese chemical industry.World-scale Verbund site in Nanjing, ChinaA joint venture between BASF and SINOPEC, the site consists of a steam cracker supplying nine world-scale downstream plants with a combined annual production capacity of 2.0 million metric tons of high-quality chemicals and polymers, with a total capital investment of $2.9 billion. This is the largest single investment in BASF’s history. In September 2009, BASF and SINOPEC broke ground on an expansion with a total investment of $1.4 billion. This investment includes the expansion of the existing steam cracker and of three existing plants, as well as the construction of 10 new chemical plants.World-scale MDI/TDI complex in Shanghai, ChinaBASF has established two joint ventures with Huntsman and several Chinese partners to produce TDI and MDI at the Shanghai Chemical Industry Park in Caojing, Shanghai. TDI and MDI are key components for the production of polyurethanes, which are used in the automotive and construction industries and in products such as refrigerators, upholstery, mattresses and footwear. The total investment in the project was $1 billion and commercial production started in mid-2006.Regional headquartersSub-regional headquartersVerbund siteChemical production siteR&D site# Due to the close proximity of some production sites,a dot may represent more than one site.* By location of customerData as of December 2009
10 Sub region: ASEANMalaysia, Singapore, Vietnam, Indonesia, Thailand and the Philippines.14 wholly owned subsidiaries7 joint ventures20 production sites2 R&D sites22 sales officesMore than 3,100 employeesSales* in 2009: Approximately €1.4 billionPhilippinesKualaLumpurBASF has been supplying customers in Southeast Asia with an extensive range of high-quality products and innovative system solutions for more than 50 years.World-scale Verbund site in Kuantan, MalaysiaA joint venture between BASF and PETRONAS, the Kuantan site was officially opened in 2001 and the total capital expenditure was €900 million. There is also a PBT production plant on the site, opened in 2006, a joint venture with Toray Industries Inc., Japan.World-scale SMPO site at Jurong Island, SingaporeA joint venture between BASF and Shell for the production of styrene monomer (SM) and propylene oxide (PO), the site is the largest SMPO facility in Asia with an annual production capacity of 800,000 metric tons.KuantanSingaporeRegional headquartersVerbund siteChemical production siteR&D siteAsia Pacific service center# Due to the close proximity of some production sites, a dot may represent more than one site.* By location of customerData as of February 2009
11 Sub region: Japan 8 wholly owned subsidiaries 14 joint ventures 35 production sites4 R&D sites55 sales officesApproximately 1,600 employeesSales* in 2009: more than €1.2 billionBASF has been supporting Japanese customers since 1888 with high-value products and customized solutions in the Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions segments.Main production sitesMain sites are located in Yokkaichi (thermoplastic polyurethanes (TPU) and polymer dispersions), Chigasaki (admixtures for concrete, construction chemicals) and Totsuka (coatings).BASF in Japan also maintains application technology laboratories in Greater Nagoya Technical Center, serving Japan and Asia with paper chemicals, pigments, functional polymers (dispersions), engineering plastics, and fuel cell application development.TokyoChemical production siteR&D siteSub-regional headquarters# Due to the close proximity of some production sites, a dot may represent more than one site.* By location of customerData as of December 2009
12 Sub region: South Asia India, Pakistan, Bangladesh and Sri Lanka 9 wholly owned subsidiaries4 joint ventures11 production sites2 R&D sites32 sales officesApproximately 2,000 employeesSales* in 2009: € 850 millionMumbaiFor more than a century, BASF has been partnering India’s progress with its vast knowledge in the field of chemistry and high quality products that cater to a wide range of industries. BASF in India is engaged in the business of manufacturing & marketing of Styropor®, tanning agents, leather chemicals and auxiliaries, crop protection chemicals, textile chemicals, dispersions and specialty chemicals, plastics, automotive and coil coatings, construction chemicals, polystyrene and polyurethane systems, apart from actively marketing a wide range of intermediates, catalysts and other chemicals for life sciences, chemicals and allied industries.R&DThe R&D sites are recognized for their competence in organic synthesis chemistry focusing on material and life-science molecules and intermediates for industrial applications. During 2009, the team was engaged in many activities which included research in the area of performance chemicals, intermediates and fine chemicals, process development for active ingredients and ionic liquids and new organic chemical intermediates for specific applications.Major production siteThe Mangalore site is strategically located close to the port as well as to our customer clusters. It is engaged in the production of Coatings materials, Dispersions and Pigment preparations.Chemical production siteSri LankaR&D siteSub-regional headquarters# Due to the close proximity of some production sites, a dot may represent more than one site.* By location of customerData as of February 2009
13 Sub region: South Korea 3 wholly owned subsidiaries2 joint ventures9 production sites3 sales officesApproximately 1,100 employeesSales* in 2009: Approximately €800 millionSeoulBASF opened its first business in Korea in 1954 and is one of the largest foreign investors in the country, supplying customers with a comprehensive range of products in thermoplastics, polyurethanes, chemicals and specialty chemicals.Main production sitesYeosu: TDI and crude MDI plant, acid chlorides and chloroformates plantUlsan: Polytetrahydrofuran (Poly THF) plant, polyol plant; expandable Polystyrene (EPS), polystyrene (PS), acrylonitrile butadiene styrene (ABS) and Pigment plantGunsan: vitamin B2Ansan: engineering plastics compounding site, chemical catalyst plantShiheung: auto catalystCheongWon: plastic additiveChemical production siteSub-regional headquarters# Due to the close proximity of some production sites, a dot may represent more than one site.* By location of customerData as of February 2009
14 Sub region: Australia And New Zealand 5 wholly owned subsidiaries11 major production site56 sales officesMore than 500 employeesSales in 2009: Approximately €350 millionBASF has been present in Australia for more than 80 years and in New Zealand for more than 50 years, supplying customers with high-performance products and solutions for agriculture, health and nutrition, colorants and finishing, chemicals and plastics.Major production sitesThe site at Altona, Melbourne produces acrylic and styrene butadiene dispersions and other specialties. BASF is the only company in Australia to produce a full range of aqueous polymer dispersions.MelbourneChemical production siteSub-regional headquartersData as of 12 April 2010