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Contents
1
Figures that refer to previous years could deviate from last year’s report due to statistical revisions.
2 BASF SE Financial Statements 2014
Business Development
Results of operations
Sales
Change
2014 2013
Million € % Million € %
Change in volumes 1,247 5.3 1,080 4.7
Change in prices (387) (1.6) (415) (1.8)
Currency effects 14 , (217) (0.9)
Commissions, licenses, other businesses, etc. 203 0.9 7 ,
1,077 4.6 455 2.0
Regions (million €)
2014 2013
Europe 17,815 17,230
Thereof Germany 6,161 6,287
North America 2,177 1,901
Asia Pacific 2,978 2,758
South America, Africa, Middle East 1,573 1,577
24,543 23,466
BASF SE Financial Statements 2014 3
In 2014, BASF SE’s sales rose by 4.6% year-on-year to The financial result saw a considerable €2,838 million increase
€24,543 million. This sales increase was particularly due to and amounted to €5,163 million. Through higher profit trans-
additional trading business with the products of a BASF fers, a dividend payment from a subsidiary’s undistributed
Group company, which in the previous year had only been earnings was the primary factor leading to an improvement in
included starting in the fourth quarter. Higher sales from other net income from shareholdings. Counteracting this were lower
businesses also had an impact. Because raw material and dividend payments in income from shareholdings. The lower
energy costs dropped in the second half of 2014 while sales interest result came from higher interest expenses from pen-
prices lowered, margins remained around the level of the sion obligations and lower income from corresponding plan
previous year. With slightly higher capacity utilization for pro- assets. Interest expenses were additionally boosted by the
duction plants, gross profit on sales increased by 3.7% to issue of new bonds.
€5,260 million.
Income from operations rose by €332 million to Net income
€1,028 million. Selling costs matched prior-year levels despite
higher sales volumes. Administrative expenses were reduced At €6,191 million, income before taxes was considerably
by €20 million, compared with a €21 million increase in above the previous year’s level. Income taxes increased by
research
expenses that arose predominantly from higher €143 million to €338 million in the reporting year, with current
spending on cross-divisional corporate research. The balance tax expenses rising year-on-year due to BASF SE’s higher
of other operating income and expenses improved by amount of income as well as to additions to provisions for
€148 million year-on-year, influenced in part the €49 million previous years. This was partly offset by valuation differences,
higher income from the reversal of, and €47 million lower the realization of plan benefits and the sale of a share, all of
expenses from additions to, provisions for the long-term
which led to higher deferred tax income.
incentive (LTI) program. Also included here was the reversal of As a result, net income rose by €3,027 million to
the previous year’s €30 million provision for wage income tax €5,853 million compared with the previous year.
obligations. Furthermore, the previous year had contained
€56 million more in contractual obligations to assume costs
for restructuring measures at BASF Group companies. Partly
counterbalancing this was a €61 million reduction in foreign
currency results in the reporting year.
2014 2013
Million € % Million € %
Fixed assets 22,754 54.6 22,052 59.0
Current assets and other assets 18,919 45.4 15,310 41.0
Total assets 41,673 100.0 37,362 100.0
Equity 17,096 41.0 13,723 36.7
Provisions 2,108 5.0 1,905 5.1
Liabilities and other liabilities 22,469 54.0 21,734 58.2
Total equity and liabilities 41,673 100.0 37,362 100.0
4 BASF SE Financial Statements 2014
Financial position
Our employees are fundamental to achieving the goals of our Innovations based on effective and efficient research and
“We create chemistry” strategy. We want to attract talented development are an important growth engine for BASF. Our
people, retain them in the company, and support them in their employees work in interdisciplinary teams on innovative pro-
development. To do so, we cultivate a working environment cesses and products for a sustainable future. This is how we
that inspires and connects people. It is founded on inclusive ensure our long-term business success with chemistry-based
leadership based on mutual trust, respect and dedication to solutions for almost all sectors of industry.
top performance. Our global network with more than 600 excellent universi-
Our employees participate in the company’s success ties, research institutes and companies is an important part of
through variable pay components and are rewarded for their our Know-How Verbund. We cooperate with them in many
individual performance. The same principles basically apply different disciplines in order to achieve our ambitious growth
for all employees. The amount of the variable component is targets. The number and quality of our patents attest to our
determined by the success of the company – measured by power of innovation and long-term competitiveness. We filed
the return on assets of the BASF Group – and the employee’s around 1,200 new patents worldwide in 2014. BASF SE had
individual performance. Individual performance is a ssessed 4,951 employees in research and development in 2014
using a globally consistent performance management and spending for research and development amounted to
approach. The annual bonus for 2014 will once again reach a €1,191 million.
high level.
Personnel expenses for BASF SE decreased by €62 mil- Environmental protection and safety
lion in 2014 to €3,173 million (2013: €3,235 million), particu
larly from lower expenses for pension benefits arising from the As a company in an energy-intensive industry, we are com-
adjustment of the projected pension increase. On Decem- mitted to energy efficiency and global climate protection. An
ber 31, 2014, BASF SE had 35,848 employees (2013: 35,411). important contribution to this is made by our efforts to
As in numerous other Group companies, employees are continue reducing emissions along the value chain, and by
offered the chance to purchase shares. The BASF share pro- our climate protection products. We utilize energy-efficient
gram “plus” sponsors the long-term participation of our production processes and efficient technologies to generate
employees in the company through incentive shares. By inves steam and electricity. We have implemented a comprehensive
ting a part of their compensation in BASF, they take part in the energy management program.
long-term development of BASF. In 2014, employees of BASF BASF SE spent €472 million (2013: €475 million) on
SE purchased 603,430 shares under the “plus” program. climate protection in 2014. This amount included both end-
Since 1999, BASF has offered its senior executives the of-pipe measures and integrated environmental protection
opportunity to participate in a share-price-based compensa- measures. As of December 31, 2014, provisions established
tion program. This long-term incentive (LTI) program ties a for environmental protection measures and remediation
portion of their compensation to the long-term performance amounted to €134 million (December 31, 2013: €130 million).
of BASF shares. The program provides for the granting of We never compromise on safety. For occupational safety
virtual options, which are settled in cash when exercised. In and health protection, we rely on comprehensive preventive
order to take part in the program, a participant must make a measures as well as on the involvement of all employees and
personal investment: A participant’s maximum gain from exer- contractors. At the Ludwigshafen site, we were able to
cising an option is limited to five times the original individual decrease our employees’ number of lost-time injuries per
investment starting with the 2013 LTI program. In 2014, 94% million working hours by 7% in 2014 compared with the pre-
of the approximately 1,200 senior executives eligible world- vious year. Contractors reduced their accident rate by 9%.
wide participated in the LTI program, investing up to 30% of We particularly rely on the commitment of all our employees
their variable compensation in BASF shares. and on clearly defined safety rules to achieve our ambitious
2020 goal of reducing the work-related accident rate by 80%
worldwide compared with 2002.
6 BASF SE Financial Statements 2014
The goal of BASF’s risk management is to identify and Risk management process
evaluate opportunities and risks as early as possible and
to take appropriate measures in order to seize opportuni- ▪▪ Integrated process for identification, assessment and
ties and limit business losses. The aim here is to avoid reporting
risks that pose a threat to BASF’s continued existence ▪▪ Decentralized management of specific opportunities
and to make improved managerial decisions to create and risks
lasting value. We understand risk to be any event that can ▪▪ Aggregation at a Group level
negatively impact the achievement of our short-term
operational or long-term strategic goals. We define
The BASF Group’s risk management process is based on the
opportunities as possible successes that exceed our
international risk management standard COSO II Enterprise
defined goals. Risk Management – Integrated Framework (2004), and has
the following key features:
In order to effectively measure and manage identified oppor-
tunities and risks, we quantify these in terms of probability Organization and responsibilities
and economic impact in the event they occur. We use statis- ––Risk management is the responsibility of the Board of Exec-
tical methods to aggregate opportunities and risks into risk utive Directors, which also determines the processes for
factors. This way, we achieve an overall view of opportunities approving investments, acquisitions and divestitures.
and risks at a portfolio level, allowing us to take effective ––The Board of Executive Directors is supported by the cor-
measures for risk management. porate divisions Finance, Corporate Controlling, Strategic
Planning & Controlling, and Legal, Taxes & Insurance, as
Overall assessment well as the Chief Compliance Officer. They coordinate the
risk management process at a Group level and provide the
▪▪ Significant risks arise from overall economic structure and appropriate methodology. Opportunity and
developments and volatility in exchange rates risk management is thus integrated in the strategy, planning
and margins as well as geopolitical conflicts and budgeting processes.
▪▪ No threat to continued existence of BASF SE ––A network of risk managers in the business and central units
advances the implementation of appropriate risk manage-
We expect the global economy to continue to grow in the next ment practices in daily operations.
two years. We see significant risks in a considerable slow- ––The management of specific opportunities and risks is
down of the Chinese economy that would result from a poten- largely delegated to the business units and is steered at a
tial real estate market crisis. Such a development would local level. Risks relating to exchange rates and raw m
aterial
negatively impact international trade, lower consumer and prices are an exception. In this case, there is an initial con-
investor confidence and majorly dampen global economic solidation at a Group-wide level before derivative hedging
growth. Any escalation of geopolitical conflicts, especially that instruments, for example, are used.
in Ukraine, also poses risks to the global economy. Important ––The internal auditing unit (Corporate Audit) is responsible for
opportunities and risks for our earnings also arise from uncer- regularly auditing the risk management system established
tainty regarding growth in Europe, the development of key by the Board of Executive Directors in accordance with
customer industries, and volatility in foreign currency Section 91(2) of the German Stock Corporation Act. Fur-
exchange rates and margins. thermore, as part of its monitoring of the Board of Executive
According to our assessment, there continue to be no Directors, the Supervisory Board considers the effective-
significant individual risks that pose a threat to the continued ness of the risk management system. Our external auditor
existence of BASF SE. The same applies to the sum of indi- evaluates the establishment and suitability of an early
vidual risks, even in the case of another global economic detection system for risks.
crisis.
Instruments
––The Risk Management Process Manual, applicable through-
out the Group, forms the framework for risk management
and is implemented by the business units according to their
particular business conditions.
––A catalog of opportunity and risk categories helps to identify
all relevant opportunities and risks as comprehensively as
possible.
––We use standardized evaluation and reporting tools for the
identification and evaluation of risks. The aggregation of
opportunities, risks and sensitivities at the business and
8 BASF SE Financial Statements 2014
Group level using a Monte Carlo simulation helps us to The significant risks for BASF SE regarding a reliable control
identify effects and trends across the company. environment and proper financial reporting are reviewed and
––Company management is informed about operational updated on an annual basis. Risks are compiled into a stan-
opportunities and risks (observation period of up to one dardized questionnaire and presented in a central risk catalog.
year) in the monthly management report produced by the In a centralized selection process, areas are identified that
Corporate Controlling unit. In addition, the corporate units are exposed to particular risks, that have a material impact on
Corporate Controlling and Finance provide information the Financial Statements of BASF SE or that provide service
twice a year about the aggregated opportunity/risk expo- processes. The selection process is conducted annually. In
sure of the BASF Group. Furthermore, if a new individual the relevant areas, one person is given the responsibility of
risk is identified which bears reputational risks or has a more monitoring the execution of the annual evaluation process
than €10 million impact on earnings, it must be immediately
reported. This process consists of the following steps:
––As part of our strategy development, the Strategic Planning – Evaluation of the control environment
unit conducts strategic opportunity/risk analyses with a ten- The adherence to internal and external guidelines that are
year assessment period. These analyses are annually relevant for the maintenance of a reliable control environment
reviewed as part of strategic controlling and are adapted if is checked by means of a standardized questionnaire. This is
necessary. supported by sample taking.
– Identification and documentation of control activities
Significant features of the internal control and In order to mitigate the risks to the financial reporting
risk management system with regard to the processes listed in our central risk catalog, corresponding
Group financial reporting process (Section control activities are conducted and documented.
289(5) HGB) – Assessment of the control activities
After documentation, a test is performed to verify whether the
▪▪ Conducted in accordance with standardized Group described controls are capable of adequately mitigating the
guidelines risks. In the subsequent test phase, samples are taken to test
▪▪ Segregation of duties, four-eyes principle and clearly whether, in practice, the controls were executed as described
regulated access rights and were effective.
▪▪ Annual evaluation of the control environment and – Monitoring of control weaknesses
relevant processes The managers responsible receive reports on any control
weaknesses identified and their resolution, and an interdisci-
The Financial Statements are prepared by a unit in the corpo- plinary committee investigates their relevance for BASF SE.
rate division Finance. BASF SE’s accounting process is based The Board of Executive Directors and the Audit Committee
on a uniform accounting guideline that sets out accounting are informed once control weaknesses have been identified
policies and the significant processes and deadlines on a that have a considerable impact on the financial reporting.
Group-wide basis. There are binding directives for the internal – Internal confirmation of the internal control system
reconciliations and other accounting operations. Standard The managing director and chief financial officer responsible
software is used to carry out the accounting processes for the for each consolidated Group company confirm to the Board
separate financial statements, and there are clear rules for the of Executive Directors of BASF SE at the end of the annual
access rights of each participant in these processes. cycle the effectiveness of the internal control system with
Employees involved in the accounting and reporting pro- regard to accounting as well as the accuracy and reliability of
cess meet the qualitative requirements and participate in financial reporting.
training on a regular basis. There is a clear assignment of
responsibilities between the specialist units, companies and
regional service units involved. We strictly adhere to the prin-
ciples of segregation of duties and dual control. Complex
actuarial reports and evaluations are produced by specialized
service providers or specially qualified employees.
An internal control system for financial reporting continu-
ously monitors these principles. To this end, methods are
provided for the structured and Group-wide uniform evalua-
tion of the internal control system in financial reporting.
BASF SE Financial Statements 2014 9
knowingly enter into this relationship and assess the conse- Financial opportunities and risks
quences of potential non-delivery. We continuously monitor
the credit risk of important business partners, both customers The management of liquidity, currency and interest rate risks
as well as suppliers. is conducted in the Treasury unit. The management of
commodity price risks takes place in the Procurement com-
Information technology risks petence center or in the appropriately authorized Group
companies. Detailed guidelines and procedures exist for
▪▪ Global procedures and systems for IT security dealing with financial risks. Among other things, they provide
▪▪ Regular training for employees for the segregation of trading and back office functions.
Risks from fluctuating cash flows are recognized in a timely We predominantly finance company pension obligations
manner as part of our liquidity planning. We have access to externally through separate plan assets. This applies particu-
extensive liquidity at any time thanks to our good ratings, our larly to BASF Pensionskasse VVaG and BASF Pensionstreu-
unrestricted access to the commercial paper market and hand e.V. in Germany. To address the risk of underfunding
committed bank credit lines. In the short to medium term, due to market-related fluctuations in plan assets, we have
BASF is largely protected against potential refinancing risks investment strategies that align return and risk optimization to
by a balanced maturity profile for financial indebtedness as the structure of the pension obligations. Stress scenarios are
well as through diversification in various financial markets. also simulated regularly by means of portfolio analyses.
Furthermore, new employees are almost always offered
Risk of asset losses defined contribution plans. An adjustment to the interest rates
used in discounting pension obligations leads immediately to
We limit country-specific risks with measures based on inter- changes in earnings.
nally determined country ratings, which are continuously
updated to reflect changing environment conditions. We
selectively use export credit insurance and investment
guarantees to limit specific country-related risks. We lower
credit risks for our financial investments by engaging in trans-
actions only with banks with good credit ratings and by
adhering to fixed limits. The credit ratings are continuously
monitored and the limits are adjusted accordingly. We reduce
the risk of default on receivables by continuously monitoring
the creditworthiness and payment behavior of our customers
and by setting appropriate credit limits. Due to the global
activities and diversified customer structure of the BASF
Group, there are no major concentrations of credit default
risk. Risks are also limited through the use of credit insurance
and bank guarantees.
Risk of impairment
Acquisitions Sustainability
▪▪ Detailed assessment of opportunities and risks as ▪▪ Identifying opportunities and risks through
part of due diligence materiality analysis
▪▪ Global monitoring for compliance with standards
In the future, we will continue to refine our portfolio through
acquisitions that promise above-average profitable growth, BASF is committed to integrating environmental protection
are innovation-driven and offer added value for our customers and socially responsible conduct into its business activities.
while reducing the cyclicality of our earnings. Infringements of our voluntary commitments and legal viola-
The evaluation of opportunities and risks already plays a tions also represent a reputational risk and could lead to
significant role during the assessment of potential acquisition operational or strategic risks. Before acquiring a company,
targets. A detailed analysis and quantification are conducted we take into account its focus on sustainability and we con-
as part of due diligence. Examples of risks include increased sider this in the acquisition process. Based on our materiality
staff turnover, delayed realization of synergies, and the analysis, we initiate change processes in the company in
assumption of obligations that were not precisely quantifiable order to be prepared for any potential risks and to exploit
in advance. If our expectations in this regard are not fulfilled, opportunities. We have established global monitoring systems
risks could arise, such as the need to impair intangible assets; which also include our supply chain – these enable us to
however, there could also be opportunities, for example, from ensure adherence to laws and our voluntary commitments in
additional synergies. the areas of environment, safety, security and health as well
as to labor and social standards. In order to assure society’s
Recruitment and long-term retention of qualified acceptance of our business activities, we engage in ongoing
employees dialog with relevant stakeholders. The Nano Dialog Forum of
BASF is an example. Ultimately, however, residual risks
▪▪ Intensified competition for highly qualified specialists remain in all entrepreneurial activities which even comprehen-
and leaders sive risk management cannot exclude.
▪▪ Risk of loss of expertise from retirements
Outlook
The development of the second half of 2014 has continued We plan investments totaling around €2.9 billion between
into the beginning of 2015: Oil and raw material prices are 2015 and 2017 for diverse investment projects. Investments
volatile, as are currencies; the emerging markets are growing are therefore likely to considerably exceed the level of depre-
more slowly; and the global economy is being dampened by ciation. Acquisitions are not included in the planned total.
geopolitical conflicts. For 2015, we nevertheless anticipate
somewhat stronger growth in the global economy, industrial Forward-looking statements
production and the chemical industry than in 2014, partly as
a consequence of the lower price of oil. The global economy These forecasts contain forward-looking statements. These
will continue to face substantial risks. In this volatile and chal- statements are based on present estimates and currently
lenging environment, we aim to perform well in 2015. available information. Future developments and results are
dependent on a number of factors; they involve various risks
We anticipate the following developments in 2015: and uncertainties and are based upon assumptions that may
––Global economic growth at 2.8%, likely somewhat faster not prove to be accurate. Potential opportunities and risks are
than in 2014 (+2.5%) presented on pages 7 through 13.
––Global chemical production expected to grow only margin-
ally faster (2015: +4.2%, 2014: +4.0%) Dividend
––Global industrial production expected to grow at 3.6%, only
marginally faster than in 2014 (+3.4%) We stand by our ambitious dividend policy and offer our
––Growth in European Union’s gross domestic product not shareholders an attractive dividend yield. We continue to aim
stronger than in 2014 (+1.4%) to increase our dividend each year, or at least maintain it at
––Stronger growth in the United States, at +3.1%; growth in the previous year’s level.
Asia (excluding Japan) at previous year’s high level (+6.1%); For information on the proposed dividend, see page 35
slowdown of growth in China; no upturn in growth in Japan
(+1.1%) and South America (+0.7%) Events after the reporting period
––Average exchange rate of $1.20 per euro
––Average oil price for the year between $60 and $70 per There have been no significant changes in the company’s
barrel (Brent crude) situation or market environment since the beginning of the
2015 business year.
For the years from 2015 to 2017, we expect the global econ-
omy to grow at an average annual rate of +3.0%.
Corporate governance refers to the entire system for the Board of Executive Directors. Board decisions are gener-
managing and supervising a company. This includes the ally based on detailed information and analyses of the busi-
organization, values, corporate principles and guidelines ness areas and specialist units, and, if deemed n ecessary, by
as well as internal and external control and monitoring external consultants. Board decisions can generally be made
mechanisms. Effective and transparent corporate gover- via a simple majority. In the case of a tied vote, the casting
nance guarantees that BASF is managed and monitored vote is given by the Chairman of the Board. However, the
in a responsible manner focused on value creation. This Chairman of the Board does not have the right to veto the
fosters the confidence of our domestic and international decisions of the Board of Executive Directors. Members of the
investors, the financial markets, our customers and other Board of Executive Directors are authorized to make deci-
business partners, employees, and the public in BASF. sions individually in their assigned areas of responsibility.
The Board can set up Board Committees to consult and
The fundamental elements of BASF SE’s corporate gover- decide on individual issues; these must include at least three
nance system are: its two-tier system, with a transparent and members of the Board of Executive Directors. For the prepa-
effective separation of company management and super ration of important decisions, such as those on acquisitions,
vision between BASF’s Board of Executive Directors and the divestitures, investments and personnel, the Board has vari-
Supervisory Board; the equal representation of shareholders ous commissions at the level below the Board that carefully
and employees on the Supervisory Board; and the share assess the planned measure and evaluate the associated
holders’ rights of co-administration and supervision at the opportunities and risks, and based on this information, report
Annual Shareholders’ Meeting. and make recommendations to the Board – independently of
the affected business area.
Direction and management by the The Board of Executive Directors informs the Supervisory
Board of Executive Directors Board regularly, without delay and comprehensively, of all
issues important to the company with regard to planning,
▪▪ Board of Executive Directors strictly separated from business development, risk situation, risk management and
Supervisory Board compliance. Furthermore, the Board of Executive Directors
▪▪ Determines corporate goals and strategic orientation coordinates the company’s strategic orientation with the
▪▪ Reports to Supervisory Board Supervisory Board.
The Statutes of BASF SE define certain transactions that
The Board of Executive Directors is responsible for the require the Board of Executive Directors to obtain the Super-
management of the company, and represents BASF SE in visory Board’s approval prior to their conclusion. Such cases
business undertakings with third parties. BASF’s Board of include the acquisition and disposal of enterprises and parts
Executive Directors is strictly separated from the Supervisory of enterprises, and the issue of bonds or comparable financial
Board: A member of the Board of Executive Directors cannot instruments; however, this is only necessary if the acquisition
simultaneously be a member of the Supervisory Board. The or disposal price or the amount of the issue in an individual
Board of Executive Directors agrees on the corporate goals case exceeds 3% of the equity reported in the last approved
and strategic alignment of the BASF Group as well as their Consolidated Financial Statements of the BASF Group.
individual business areas, and determines the company’s For more on risk management, see the Opportunities and Risks Report
from pages 7 through 13
internal organization. It also manages and monitors BASF
The members of the Board of Executive Directors, including their
Group business through the planning and setting of the cor- areas of responsibility and memberships on the supervisory bodies
porate budget, the allocation of resources and management of other companies, are listed on page 30. Compensation of the Board
of Executive Directors is described in detail in the Compensation
capacities, the monitoring and decision-making regarding Report from pages 22 to 28
significant individual measures, and the control of the opera-
tional management. Supervision of company management by the
The Board’s actions and decisions are aligned with the Supervisory Board
company’s best interests. It is committed to the goal of sus-
tainably increasing the company’s value. Among the Board’s ▪▪ Supervisory Board appoints, monitors und advises
responsibilities is the preparation of the consolidated and Board of Executive Directors
individual financial statements of BASF SE. Furthermore, it ▪▪ Three Supervisory Board committees
must ensure that the company’s activities comply with legal
requirements and internal corporate directives. This includes The Supervisory Board appoints the members of the Board of
the establishment of appropriate controls and risk manage- Executive Directors and supervises and advises the Board on
ment systems. management issues. As members of the Supervisory Board
Decisions that are reserved for the Board as a whole by cannot simultaneously be members of the the Board of
law, through the Board of Executive Directors’ Rules of Proce- Executive Directors, a high level of autonomy is already struc-
dure or through resolutions adopted by the Board, are made turally ensured with regard to the supervision of the Board of
at regularly held Board meetings called by the Chairman of Executive Directors.
16 BASF SE Financial Statements 2014
Duties Members:
––Prepares the appointment of members to the Board of Dame Alison Carnwath DBE (since May 2, 2014),
Executive Directors by the Supervisory Board as well as the Prof. Dr. François Diederich, Michael Diekmann,
employment contracts to be entered into with members of Franz Fehrenbach, Max Dietrich Kley (until May 2, 2014),
the Board of Executive Directors Anke Schäferkordt
––When making recommendations for appointments to the
Board of Executive Directors, considers professional qualifi- Duties
cations, international experience and leadership skills as ––Identifies suitable candidates for the Supervisory Board
well as long-term succession planning, diversity, and in based on objectives for the composition decided on by the
particular the proper consideration of women Supervisory Board
––Prepares the resolutions made by the Supervisory Board ––Prepares the recommendations made by the Supervisory
with regard to the system and determination of the amount Board for the election of Supervisory Board members for
of compensation paid to members of the Board of Execu- the Annual Shareholders’ Meeting
tive Directors
BASF SE Financial Statements 2014 17
Objectives for the composition of the On this basis, the Supervisory Board has determined that all
Supervisory Board of its current members can be considered independent. We
firmly believe the current composition fulfills the objectives
▪▪ Composition criteria: professional and personal agreed on by the Supervisory Board.
qualifications, diversity, and independence
Shareholders’ rights
One important concern of good corporate governance is to
ensure that seats on the responsible corporate bodies, the ▪▪ Shareholders’ rights of co-administration and
Board of Executive Directors and the Supervisory Board, are supervision at the Annual Shareholders’ Meeting
appropriately filled. The criteria comprise professional and ▪▪ One share, one vote
personal qualifications, the diversity of the members and the
independence of the Supervisory Board. Seats on the Board Shareholders exercise their rights of co-administration and
of Executive Directors and Supervisory Board should be filled supervision at the Annual Shareholders’ Meeting. The Annual
with members who ensure a well-balanced consideration of Shareholders’ Meeting elects half of the members of the
all the knowledge, skills and personal qualifications necessary Supervisory Board and, in particular, decides on the formal
to manage and supervise BASF as a large, globally operating, discharge of the Board of Executive Directors and the Super-
capital market-oriented company in the chemical industry. visory Board, the distribution of profits, capital measures, the
On October 21, 2010, the Supervisory Board agreed authorization of share buybacks, changes to the Statutes and
upon objectives for the composition of the Supervisory Board the selection of the auditor.
in accordance with Section 5.4.1 of the German Corporate Each BASF SE share represents one vote. All of BASF SE’s
Governance Code; in its meeting of December 20, 2012, an shares are registered shares. Shareholders are obliged to
objective was added for the number of independent Super have themselves entered with their shares into the c ompany
visory Board members. According to these objectives, the share register and to provide the information necessary for
Supervisory Board is to be composed in such a way that the registration in the share register according to the German
members as a group possess knowledge, ability and expert Stock Corporation Act. There are no registration restrictions
experience in: and there is no limit to the number of shares that can be
registered to one shareholder. Only the persons listed in the
––The management of an internationally operating company share register are entitled to vote as shareholders. Listed
––Cross-industry value creation along different value chains shareholders may exercise their voting rights at the Annual
––The application of accounting principles and internal control Shareholders’ Meeting either personally, through a represen-
procedures tative of their choice or through a company-appointed proxy
––The field of technical and scientific innovations in the chemi authorized by the shareholders to vote according to their
cal sector and associated industries as well as in the sectors instructions. There are neither voting caps to limit the number
using chemical products. of votes a shareholder may cast nor special voting rights.
BASF has thus fully implemented the principle of “one share,
In terms of diversity, the Supervisory Board shall consider a one vote.”
variety of professional and international experience as well as All shareholders entered in the share register are entitled
the participation of women. At least two women shall belong to participate in the Annual Shareholders’ Meetings, to have
to the Supervisory Board. With regard to independence, the their say concerning any item on the agenda and to request
Supervisory Board aims to ensure that all Supervisory Board information about company issues insofar as this is necessary
members are independent as defined by the terms of the to make an informed judgment about the item on the agenda
Code. Individuals who may have a conflict of interest shall not under discussion. Registered shareholders are also entitled to
be nominated for election to the Supervisory Board. The file motions pertaining to proposals for resolutions made by
same applies to candidates who will have reached the age of the Board of Executive Directors and Supervisory Board at
70 by the day of the election. the Annual Shareholders’ Meeting and to contest resolutions
There have been three women on the Supervisory Board of the Meeting and have them evaluated for their lawfulness in
since May 2014. Two of the six shareholder representatives court. Shareholders who hold at least €500,000 of the com-
elected by the Annual Shareholders’ Meeting are women. In pany’s share capital, a quota corresponding to 390,625
assessing independence, the Supervisory Board assumes shares, are furthermore entitled to request that additional
that neither election as an employee representative, nor items be added to the agenda of the Annual Shareholders’
membership on the Board of Executive Directors more than Meeting.
two years in the past, by itself precludes the classification as
independent.
18 BASF SE Financial Statements 2014
Implementation of the German Corporate ismiss a member of the Board of Executive Directors if there
d
Governance Code is serious cause to do so. Serious cause includes, in particu-
lar, a gross breach of the duties pertaining to the Board of
▪▪ BASF SE follows all recommendations of German Executive Directors and a vote of no confidence at the Annual
Corporate Governance Code Shareholders’ Meeting. The Supervisory Board decides on
appointments and dismissals according to its own best
BASF supports the German Corporate Governance Code, judgment.
which is an important tool in the continuing, capital market- According to Article 59(1) SE Council Regulation, amend-
oriented development of corporate governance and control, ments to the Statutes of BASF SE require a resolution of the
and advocates responsible corporate governance that focuses Annual Shareholders’ Meeting adopted with at least a two-
on sustainably increasing the value of the company. thirds majority of the votes cast, provided that the legal provi-
BASF SE follows all recommendations of the German sions applicable to German stock corporations under the
Corporate Governance Code in its most recently revised ver- German Stock Corporation Act do not stipulate or allow for
sion of June 2014. In the same manner, BASF follows nearly all larger majority requirements. In the case of amendments to
of the nonobligatory suggestions of the German Corporate the Statutes, the Section 179(2) of the German Stock Corpo-
Governance Code. We have not implemented the suggestion ration Act requires a majority of at least three-quarters of the
to enable shareholders to follow the proceedings of the entire subscribed capital represented. Pursuant to Article 12(6) of
Annual Shareholders’ Meeting online. The Annual Share
the Statutes of BASF SE, the Supervisory Board is authorized
holders’ Meeting is publicly accessible via online broadcast to resolve upon amendments to the Statutes that merely
until the end of the speech by the Chairman of the Board of concern their wording. This applies in particular to the adjust-
Executive Directors. The subsequent discussion of items on ment of the share capital and the number of shares after the
the agenda is not accessible online in order to preserve the redemption of repurchased BASF shares and after a new
character of the A nnual Shareholders’ Meeting as a meeting issue of shares from the authorized capital.
attended by our shareholders on-site. Until May 1, 2019, the Board of Executive Directors of
The joint Declaration of Conformity 2014 by the Board of Executive BASF SE is empowered by a resolution passed at the Annual
Directors and Supervisory Board of BASF SE is rendered on page 21
Shareholders’ Meeting of May 2, 2014, to increase the sub-
For more on the Declaration of Conformity 2014, the implementation of
the Code’s suggestions and the German Corporate Governance Code, scribed capital – with the approval of the Supervisory Board
see basf.com/governance_e – by up to €500 million through the issue of new shares
against cash or contribution in kind (authorized capital).
Disclosure according to Section 289(4) of the A right to subscribe to the new shares shall be granted to
German Commercial Code and the explanatory shareholders. This can also be done by a credit institution
report of the Board of Executive Directors acquiring the new shares with the obligation to offer these to
according to Section 176(1) Sentence 1 of the shareholders (indirect subscription right). The Board of Execu
German Stock Corporation Act tive Directors is authorized to exclude the statutory subscrip-
tion right of shareholders to a maximum amount of a total of
As of December 31, 2014, the subscribed capital of BASF SE 20% of share capital in certain exceptional cases that are
was €1,175,652,728.32, divided into 918,478,694 registered defined in Section 5(8) of the BASF SE Statutes. This applies
shares with no par value. Each share entitles the holder to one in particular if, for capital increases in return for cash contribu-
vote at the Annual Shareholders’ Meeting. Restrictions on the tions, the issue price of the new shares is not substantially
right to vote or transfer shares do not exist. The same rights lower than the stock market price of BASF shares and the
and duties apply to all shares. According to the Statutes, total number of shares issued under this authorization is not
shareholders are not entitled to receive share certificates. more than 10% of the stock of shares on the date of issue or,
There are neither different classes of shares nor shares with in eligible individual cases, to acquire companies or shares in
preferential voting rights (golden shares). companies in exchange for surrendering BASF shares.
The appointment and dismissal of members of the Board At the Annual Shareholders’ Meeting on April 27, 2012,
of Executive Directors is legally governed by the regulations in the Board of Executive Directors was authorized to purchase
Article 39 of the SE Council Regulation, Section 16 of the SE up to 10% of the shares existing at the time of the resolution
Implementation Act and Sections 84, 85 of the German Stock (10% of the company’s share capital) until April 26, 2017. At
Corporation Act, as well as Article 7 of the BASF SE Statutes. the discretion of the Board of Executive Directors, the pur-
Accordingly, the Supervisory Board determines the number of chase can take place on the stock exchange or by way of a
members of the Board of Executive Directors (at least two), public purchase offer directed to all shareholders. The Board
appoints the members of the Board of Executive Directors, of Executive Directors is authorized to sell the repurchased
and can nominate a chairperson, as well as one or more vice- company shares (a) through a stock exchange, (b) through a
chairpersons. The members of the Board of Executive public offer directed to all shareholders and – with the approval
Directors are appointed for a maximum of five years, and of the Supervisory Board – to third parties, (c) for a cash
reappointments are permissible. The Supervisory Board can payment that is not significantly lower than the stock e xchange
BASF SE Financial Statements 2014 19
price at the time of sale and (d) for contributions in kind, par- Share ownership by Members of the Board of
ticularly in connection with the acquisition of companies, Executive Directors and the Supervisory Board
parts of companies or shares in companies or in connection
with mergers. In the cases specified under (c) and (d), the No member of the Board of Executive Directors or the Super-
shareholders’ subscription right is excluded. The Board of visory Board owns shares in BASF SE and related options or
Executive Directors is furthermore authorized to redeem the other derivatives that account for 1% or more of the share
shares bought back and to reduce the share capital by the capital. Furthermore, the total volume of BASF SE shares and
proportion of the share capital accounted for by the redeemed related financial instruments held by members of the Board of
shares. Executive Directors and the Supervisory Board accounts for
Bonds issued by BASF SE grant the bearer the right to less than 1% of the shares issued by the company.
request early repayment of the bonds at nominal value if one
person – or several persons acting in concert – hold or acquire Share dealings of the Board of Executive
a BASF SE share volume after the time of issuance which Directors and Supervisory Board (Directors’
corresponds to more than 50% of the voting rights (change of Dealings under Section 15a of German
control), and one of the rating agencies named in the bond’s Securities Trading Act)
terms and conditions withdraws its rating of BASF SE or the
bond, or reduces it to a noninvestment grade rating within In accordance with Section 15a of the German Securities
120 days after the change-of-control event. Trading Act (Wertpapierhandelsgesetz), all members of the
In the event of a change of control, members of the Board Board of Executive Directors and the Supervisory Board as
of Executive Directors shall, under certain additional condi- well as certain members of their families are required to
tions, receive compensation (details of which are listed in the disclose the purchase or sale of BASF shares and other
Compensation Report on page 28). A change of control is related rights to the Federal Financial Supervisory Authority
assumed when a shareholder informs BASF of a shareholding (Bundesanstalt für Finanzdienstleistungsaufsicht) and to the
of at least 25% or the increase of such a holding. In addition, company if transactions within the calendar year exceed the
employees of BASF SE and its subsidiaries who are classed threshold of €5,000.
as senior executives will receive a severance payment if their In 2014, a total of six purchases by members of the Board
contract of employment is terminated by BASF within 18 of Executive Directors and the Supervisory Board and mem-
months of the occurrence of a change of control, provided the bers of their families subject to disclosure were reported as
employee has not given cause for the termination. The Directors’ Dealings, involving between 50 and 7,320 BASF
employee whose service contract has been terminated in
shares. The price per share was between €68.25 and €85.15.
such a case will receive a maximum severance payment of The volume of the individual trades was between €4,048 and
1.5 times the annual salary (fixed component) depending on €499,956. The disclosed share transactions are published on
the number of months that have passed since the change- the website of BASF SE.
of-control event. For more on securities transactions reported in 2014, see
basf.com/governance/sharedealings_e
The remaining specifications stipulated in Section 289(4)
of the German Commercial Code refer to situations that are
not applicable to BASF SE.
For more on bonds issued by BASF SE, see
basf.com/investor/bonds_e
BASF SE has taken out liability insurance that covers the acti
vities of members of the Board of Executive Directors and the
Supervisory Board (D&O insurance). This policy provides for
the level of deductibles for the Board of Executive Directors
as prescribed by Section 93(2)(3) of the German Stock
Corporation Act and for the level of deductibles for the
Supervisory Board as recommended in Section 3.8(3) of the
German Corporate Governance Code.
20 BASF SE Financial Statements 2014
Compliance
With our Group-wide Compliance Program, we aim to Committee in at least one of its meetings each year on the sta-
ensure adherence to legal regulations and the company’s tus of the Compliance Program as well as any major develop-
internal guidelines. We have integrated compliance into our ments. In the event of significant incidents, the Audit Committee
“We create chemistry” strategy. Our employee Code of is immediately informed by the Board of Executive Directors.
Conduct firmly embeds these mandatory standards into We particularly encourage our employees to actively and
everyday business. Members of the Board of Executive promptly seek guidance if in doubt. For this, they can consult
Directors are also expressly obligated to follow these not only their managers but also specified specialist depart-
principles. ments and company compliance officers. We have also set up
50 external hotlines worldwide which our employees can turn to
Based on international standards, BASF’s Compliance Pro- anonymously. We make sure that all concerns are processed
gram combines important laws and company-internal policies and answered within a short amount of time.
– which themselves often exceed legal requirements – to create In 2014, 276 calls and emails were received by our external
a framework that regulates how all BASF employees interact hotlines (2013: 304). Concerns involved topics ranging from
with business partners, officials, colleagues and society. At the questions on personnel management and handling of company
core of our Compliance Program is the global, standardized property to information on the behavior of business partners.
Code of Conduct that we distributed to all employees. It We launched investigations into all cases of suspected miscon-
describes our guidelines for proper conduct and comprises not duct that we became aware of. Confirmed violations were
only topics like corruption and antitrust laws, but also issues penalized, up to and including dismissal. This involved making
such as human rights, labor and social standards, conflicts of sure that the necessary action was taken in accordance with
interest and trade control, as well as protection of data privacy. standardized company criteria. A notification was sent to the
Abiding by compliance standards is part of responsible appropriate authority in one case of suspected corruption.
leadership. This has been expressly embedded in our values, BASF’s Corporate Audit department monitors adherence to
where we state: “We strictly adhere to our compliance stan- compliance principles, covering all areas in which compliance
dards.” We are convinced that compliance with these stan- violations could occur. They check that employees adhere to
dards will not only avoid the disadvantages associated with regulations and make sure that the established processes,
violations, such as penalties and fines. We also view compli- procedures and monitoring tools are appropriate and sufficient
ance as the right path toward securing our company’s long- to minimize potential risk or preclude violations in the first place.
term success. In 2014, 104 Group-wide audits of this kind were performed
Our efforts are principally aimed at preventing violations (2013: 111), predominantly in the areas of antitrust law, imports
from the outset. To this end, all employees are required within a and exports, and gifts and entertainment.
prescribed time frame to take part in basic compliance training, Our compliance management system itself is also regularly
refresher courses and special tutorials dealing with, for exam- audited, most recently in August 2014. If compliance audits
ple, antitrust law or trade control regulations. Training takes demonstrate a need to optimize procedures or hone control
place in different formats, including face-to-face training, measures, we implement them immediately. Furthermore, we
e-learning or workshops. In addition, we introduced a new intensified the audits of our business partners in the area of
e-learning program on compliance in 2014. In total, more than sales. The audits’ content and scope are prescribed by a global
59,000 employees worldwide took part in around 65,000 hours directive.
of compliance training in 2014. Even outside of our company, we support the respect of
human rights and the fight against corruption: We are a found-
Monitoring adherence to compliance principles ing member of the United Nations Global Compact, and are
committed to our responsibility in accordance with the U.N.
▪▪ Central role of Chief Compliance Officer and Guiding Principles on Business and Human Rights. As a mem-
compliance officers ber of Transparency International Deutschland and the Partner-
▪▪ 50 external hotlines worldwide ing Against Corruption Initiative (PACI) of the World Economic
▪▪ Compliance Management System audited internally Forum, we assist in the implementation of these organizations’
objectives. As a member of the U.N. Global Compact LEAD, we
BASF’s Chief Compliance Officer (CCO) manages the imple- report in accordance with the Blueprint for Corporate Sustain-
mentation of our Compliance Management System, supported ability Leadership. This action plan comprises measures to
by 89 compliance officers worldwide. The CCO regularly reports support the U.N. Millennium Development Goals, addressing
to the Board of Executive Directors on progress in the program’s topics such as transparency and stakeholder engagement.
implementation as well as on any significant findings. Further- For more on the BASF Code of Conduct, see
basf.com/code_of_conduct
more, the CCO reports to the Supervisory Board’s Audit
BASF SE Financial Statements 2014 21
Declaration of Conformity
Compensation Report
This report outlines the main principles of the compensa- The compensation components are shown in
tion for the Board of Executive Directors and discloses detail below:
the amount and structure of the compensation of each
Board member. Furthermore, it provides information on 1. The fixed salary is a set amount of yearly compensation
end-of-service undertakings with respect to Board mem- paid out in even installments. It is regularly reviewed by the
bers, as well as information on the compensation of Supervisory Board and adjusted, if necessary.
Supervisory Board members.
2. The actual annual variable compensation (variable
Compensation of the Board of Executive bonus) is based on the performance of the entire Board of
Directors Executive Directors and the return on assets. The return on
assets is also used to determine the variable compensation of
This report meets the disclosure requirements of the German all other employee groups.
Commercial Code, supplemented by the additional In order to assess the sustainable performance of the
requirements based on the German Act on Disclosure of
Board of Executive Directors, each year the Supervisory
Management Board Remuneration (Vorstandsvergütungs- Board sets a target agreement with the entire Board of Execu
Offenlegungsgesetz) as well as the German Act on the Appro- tive Directors that primarily contains medium and long-term
priateness of Management Board Remuneration (Gesetz zur goals.
Angemessenheit der Vorstandsvergütung), and is aligned The Supervisory Board assesses the goal achievement of
with the recommendations of the German Corporate Gover- the current year and the previous two years. A performance
nance Code in its version of June 24, 2014. factor with a value between 0 and 1.5 is determined on the
Based on a proposal by the Personnel Committee, the basis of the goal achievement ascertained by the Supervisory
Supervisory Board determines the amount and structure of Board. The variable bonus for the prior fiscal year is payable
compensation of members of the Board of Executive after the Annual Shareholders’ Meeting.
Directors. Board members, like other employee groups, may con-
The amount of compensation is determined by the tribute a portion of their annual variable bonus into a deferred
company’s size, complexity and financial position, as well as compensation program. For members of the Board of Execu-
the performance of the Board of Executive Directors. Internal tive Directors, as well as for all other senior executives of the
and external appropriateness of the Board’s compensation is German BASF Group, the maximum amount that can be
reviewed by external auditors on a regular basis. Globally contributed to this program is €30,000. Board members have
operating companies based in Europe serve as an external taken advantage of this offer to varying degrees.
reference. For internal comparison, compensation is
considered in total as well as over time, especially for senior 3. A share-price-based, long-term incentive (LTI) pro-
executives. gram exists for members of the Board of Executive Directors.
For more on the Supervisory Board and its committees, see page 16 It is also offered to all other senior executives of BASF Group.
Members of the Board of Executive Directors are subject to a
Principles stricter set of rules than are contained in the general program
conditions: They are required to participate in the program
The compensation of the Board of Executive Directors is with at least 10% of their variable bonus. This mandatory
designed to promote sustainable corporate development. It is investment consisting of BASF shares is subject to a holding
marked by a pronounced variability in relation to the perfor- period of four years. For any additional voluntary investment
mance of the Board of Executive Directors and BASF Group’s of up to 20% of the variable bonus, the general holding period
return on assets. of two years applies. Members of the Board of Executive
Directors may only exercise their options at least four years
The compensation of the Board of Executive after they have been granted (vesting period). This compen-
Directors comprises: sation component is limited, too, by the structure of the LTI
program as well as by the upper limit on the options’ exercise
1. Fixed salary value. Because the exercise period spans multiple years, it
2. Annual variable compensation can occur that gains allocated from several LTI program years
3. Share-price-based, long-term incentive (LTI) program) all accumulate into one year; there can also be years in which
4. Nonmonetary compensation and other additional compen- no gains are allocated.
sation For more on share ownership by members of the Board of Executive
Directors, see page 19
5. Company pension benefits
BASF SE Financial Statements 2014 23
4. Included in nonmonetary compensation and other amounts to 10% for each half-orphan, 33% for an orphan,
additional compensation (fringe benefits) are the following: 25% each for two orphans and 20% each for three or more
delegation allowances, accident insurance premiums and orphans of the pension entitlement of the deceased (former)
other similar benefits, and benefits from means of transport Board member. Total survivor benefits may not exceed 75%
and security measures provided by the company. The mem- of the Board member’s pension entitlement. If the survivor
bers of the Board did not receive loans or advances from the pensions exceed the upper limit, they will be proportionately
company in 2014. reduced.
The members of the Board are covered by loss liability Board members are members of the BASF Pensionskasse
insurance concluded by the company (D&O insurance) which VVaG, as are generally all employees of BASF SE. Contribu-
includes a deductible. tions and benefits are determined by the Statutes of the
For more on the D&O insurance of the Board of Executive Directors, BASF Pensionskasse VVaG and the General Conditions of
see page 19
Insurance.
5. As part of the pension benefits granted to the Board of Amount of total compensation
Executive Directors (“Board Performance Pension”), company
pension benefits are intended to accrue annual pension units. The tables on pages 24–25 show the granted and allocated
The method used to determine the amount of the pension compensation as well as service cost of each member of the
benefits generally corresponds to that used for the other Board of Executive Directors in accordance with Section
senior executives of the German BASF Group. The m ethod is 4.2.5(3) of the German Corporate Governance Code (GCGC)
designed such that both the performance of the company in its version of June 24, 2014.
and the progression of the individual Board member’s career
significantly affect the pension entitlement. Compensation granted in accordance with the German
The annual pension benefits accruing to Board members Corporate Governance Code (GCGC)
in a given reporting year (pension unit) are composed of a
fixed and a variable component. The fixed component is cal- The table “Compensation granted in accordance with GCGC”
culated by multiplying the annual fixed salary above the Social shows: fixed salary, fringe benefits, annual variable target
Security Contribution Ceiling by 32% (contribution factor). compensation, LTI program measured at fair value at the
The variable component of the pension unit is the result of grant date, and service cost. The individual compensation
multiplying the fixed component with a factor that is depen- components are supplemented by individually attainable
dent on the return on assets in the reporting year and the minimum and maximum compensation.
performance factor, which is also decisive for the variable Furthermore, a reconciliation statement for total compen-
bonus. The amount resulting from the fixed and the variable sation to be reported is provided below the table “Compensa-
component is converted into a pension unit (lifelong pension) tion granted in accordance with GCGC” due to the disclosures
using actuarial factors based on an actuarial interest rate required by Section 285(9a) of the German Commercial Code
(5%), the probability of death, invalidity and bereavement ac- (HGB) in connection with the German Accounting Standard
cording to Heubeck Richttafeln, 2005G (modified), and an Number 17 (GAS 17).
assumed pension increase (at least 1% per annum). The fixed salary and annual variable target compensation
The sum of the pension units accumulated over the were both raised on January 1, 2014, for the first time since
reporting years determines the respective Board member’s January 1, 2011.
pension benefit in the event of a claim. This is the amount that
is payable upon retirement. Pension benefits take effect at the
end of service after completion of the member’s 60th year of
age, or on account of disability or death. Pension payments
are reviewed on a regular basis and adjusted by at least 1%
each year.
The pension units also include survivor benefits. Upon the
death of an active or former member of the Board, the surviv-
ing spouse receives a survivor pension amounting to 60% of
the Board member’s pension entitlement. The orphan pension
24 BASF SE Financial Statements 2014
Compensation granted in accordance with the German Corporate Governance Code (GCGC) (in thousand €)
2014 2013
Dr. Kurt Bock 41,412 54,240
Dr. Martin Brudermüller 27,536 36,072
Dr. Hans-Ulrich Engel 20,704 27,120
Michael Heinz 20,704 27,120
Dr. Andreas Kreimeyer 20,704 27,120
Dr. Harald Schwager 20,704 27,120
Wayne T. Smith 20,704 21,276
Margret Suckale 20,704 10,880
Total 193,172 230,948
Compensation allocated in accordance with the German Corporate Governance Code (GCGC) (in thousand €)
Compensation allocated in accordance with the German Corporate Governance Code (GCGC) (in thousand €)
Accounting valuation of multiple-year variable The expenses and gains reported below are purely account-
compensation (LTI programs) ing figures which do not equate with the allocated actual
gains should options be exercised. Each member of the
While the options granted had resulted in an expense for Board may decide individually on the timing and scope of the
BASF in 2013, they led to income in 2014, except in the case exercise of options of the LTI programs, while taking into
of Dr. Andreas Kreimeyer. This income refers to the total of all account the terms and conditions of the program.
options from the LTI programs 2006 to 2014 and is calculated The gains for 2014 relating to all options issued were as
as the difference in the value of the options on December 31, follows: Dr. Kurt Bock €97 thousand (2013: expense of
2014, compared with the value on December 31, 2013, con- €1,870 thousand); Dr. Martin Brudermüller €333 thousand
sidering the options exercised and granted in 2014. The value (2013: expense of €1,773 thousand); Dr. Hans-Ulrich Engel
of the options is based primarily on the development of the €90 thousand (2013: expense of €1,593 thousand); Michael
BASF share price and its relative performance compared with Heinz €146 thousand (2013: expense of €477 thousand); Dr.
the benchmark index specified for the LTI programs 2006 to Harald Schwager €388 thousand (2013: expense of
2014. Because the value of options on December 31, 2014, €1,716 thousand); Wayne T. Smith €165 thousand (2013:
was lower than that of December 31, 2013, a gain rather than expense of €312 thousand); and Margret Suckale €145 thou-
an expense arose for 2014. sand (2013: expense of €390 thousand). For Dr. Andreas
28 BASF SE Financial Statements 2014
Kreimeyer, the expense for 2014 amounted to €446 thousand ension,” the time up to the regular expiry of office is taken
P
(2013: expense of €1,477 thousand). into consideration.
For more on the LTI progam, see page 5 There is a general limit on severance pay (severance pay-
ment cap) for all Board members. Accordingly, payments
Pension benefits made to a Board member upon premature termination of their
contract, without serious cause, may not exceed the value
The values as per German commercial law for service cost of two years’ compensation, including fringe benefits, nor
incurred in 2014 contain service cost for BASF Pensionskasse compensate more than the remaining term of the contract.
VVaG and Performance Pension. Service cost for the mem- The severance payment cap is to be calculated on the basis
bers of the Board of Executive Directors is shown individually of the total compensation for the past full financial year and, if
in the tables “Compensation granted in accordance with appropriate, also the expected total compensation for the
GCGC” and “Compensation allocated in accordance with current financial year. If the appoint ment to the Board of
GCGC.” Executive Directors is prematurely terminated as the result of
The present value of pension benefits (defined benefit a change of control, the payments may not exceed 150% of
obligation) is an accounting figure for the entitlements that the the severance compensation cap.
Board members have accumulated in their years of service at
BASF. The defined benefit obligations calculated in accor- Former members of the Board of Executive
dance with German commercial law up to and including 2014 Directors
are as follows: Dr. Kurt Bock €12,376 thousand (2013:
€10,767 thousand); Dr. Martin Brudermüller €8,402 thousand Total compensation for previous Board members and their
(2013: €7,222 thousand); Dr. Hans-Ulrich Engel €6,645 thou- surviving dependents amounted to €6.5 million in 2014 (2013:
sand (2013: €5,748 thousand); Sanjeev Gandhi €704 thou- €10.5 million). This figure also contains payments that previ-
sand; Michael Heinz €4,867 thousand (2013: €4,040 thou- ous Board members have themselves financed through the
sand); Dr. Andreas Kreimeyer €10,487 thousand (2013: deferred compensation program and the gain or expense for
€9,499 thousand); Dr. Harald Schwager €6,190 thousand 2014 relating to options that previous members of the Board
(2013: €5,323 thousand); Wayne T. Smith €1,307 thousand still hold from the time of their active service period.
(2013: €781 thousand); and Margret Suckale €2,422 thou- The continuation of the options that have not yet been
sand (2013: €1,861 thousand). The increase in the defined exercised at the time of retirement, along with the continua-
benefit obligations compared with the previous year was tion of the associated holding period for individual investment
largely attributable to the lower discount rate. in BASF shares under the conditions of the program, is inten
ded in order to particularly emphasize how sustainability is
End-of-service benefits incorporated into the compensation for the Board members.
Pension provisions for previous Board members and their
In the event that a member of the Board of Executive Direc- surviving d ependents in accordance with German commercial
tors retires from employment before the age of 60, either law amounted to €112.2 million (2013: €115.7 million).
because their appointment was not extended or was revoked
for an important reason, they are entitled to pension benefits Compensation of Supervisory Board members
if they have served on the Board for at least ten years or if the
time needed to reach legal retirement age is less than ten The disclosure of compensation of the Supervisory Board is
years. The company is entitled to offset compensation based on the German Commercial Code and is aligned with
received for any other work done against pension benefits the recommendations of the German Corporate Governance
until the legal retirement age is reached. Code. The compensation of the Supervisory Board is regu
The following applies to end of service due to a change- lated by the Statutes of BASF SE passed by the Annual
of-control event: A change-of-control event, in terms of this Shareholders’ Meeting.
provision, occurs when a shareholder informs BASF of a Each member of the Supervisory Board receives an annual
shareholding of at least 25%, or the increase of such a holding. fixed compensation of €60,000 and a performance-related
If Board member’s appointment is revoked within one year variable compensation for each full €0.01 by which the earn-
following a change-of-control event, the Board member will ings per share of the BASF Group, as declared in the BASF
receive the contractually agreed payments for the remaining Group Consolidated Financial Statements for the year for
contractual term of office as a one-off payment (fixed salary which the remuneration is paid, exceeds the minimum earn-
and annual variable target compensation). Furthermore, the ings per share. For the 2014 business year, minimum earnings
Board member may receive the fair value of the option rights per share amounted to €1.65 (2013: €1.60). The perfor-
acquired in connection with the LTI program within a period of mance-related variable remuneration is €800 for each €0.01
three months or may continue to hold the existing rights under of earnings per share up to an earnings per share of €2.40,
the terms of the program. For the determination of the €600 for each further €0.01 of earnings per share up to an
accrued pension benefits from the “Board Performance
earnings per share of €2.90, and €400 for each €0.01 beyond
BASF SE Financial Statements 2014 29
this. The minimum earnings per share and the corresponding The company reimburses members of the Supervisory Board
thresholds shall increase by €0.05 for each subsequent finan- for out-of-pocket expenses and value-added tax to be paid
cial year. The performance-related variable compensation is with regard to their activities as members of the Supervisory
limited to a maximum amount of €120,000. Board or of a committee. The company further grants the
Based on the earnings per share of €5.61 published in the members of the Supervisory Board a fee of €500 for attending
BASF Group Consolidated Financial Statements 2014, the a meeting of the Supervisory Board or one of its committees
performance-related compensation reached the maximum to which they belong and includes the performance of the
amount of €120,000 (2013: €120,000). duties of the members of the Supervisory Board in the cover
The chairman of the Supervisory Board receives two and- of a loss liability insurance concluded by it (D&O insurance),
a-half times and a vice chairman one and-a-half times the which includes a deductible.
compensation of an ordinary member. Members of the For more on the D&O insurance of the Supervisory Board, see page 19
Supervisory Board who are members of a committee, except
for the Nomination Committee, receive a further fixed compen- Total compensation of the Supervisory Board of the company
sation for this purpose in the amount of €12,500. For the Audit for the activity in 2014, including the attendance fees, was
Committee, the further fixed compensation is €50,000. The around €3 million (2013: around €3 million). The compensation
chairman of a committee shall receive twice and a vice chair- of the individual Supervisory Board members is as follows:
man one-and-a-half times the further fixed compensation.
Compensation for Supervisory Board membership and mem- plus value-added taxes and out-of-pocket expenses for con-
bership of Supervisory Board committees is payable after the sulting work in the area of chemical research based on a
Annual Shareholders’ Meeting, which approves the Consoli- consulting contract approved by the Supervisory Board.
dated Financial Statements upon which the variable compen- Beyond this, no other Supervisory Board members
sation is based. Accordingly, compensation relating to the received any compensation in 2014 for services rendered
year 2014 will be paid following the Annual Shareholders’ personally, in particular, the rendering of advisory and agency
Meeting on April 30, 2015. services.
In 2014, as in 2013, the company paid Supervisory Board For more on share ownership by members of the Supervisory Board,
see page 19
member Prof. Dr. François Diederich a total of CHF 38,400
(2014: approximately €31,600; 2013: approximately €31,200)
30 BASF SE Financial Statements 2014
There were nine members on the Board of Executive Directors of BASF SE as of Dec. 31, 2014
Supervisory Board
In accordance with the Statutes, the Supervisory Board of BASF SE comprises twelve members
The term of office of the Supervisory Board commenced fol- Franz Fehrenbach, Stuttgart, Germany
lowing the Annual Shareholders’ Meeting on May 2, 2014, in Chairman of the Supervisory Board of Robert Bosch GmbH
which the shareholder representatives on the Supervisory Supervisory Board memberships (excluding internal memberships):
Board were elected. It terminates upon conclusion of the Robert Bosch GmbH (Chairman)
Stihl AG (Vice Chairman)
Annual Share holders’ Meeting which resolves on the dis-
Linde AG (member)
charge of members of the Supervisory Board for the fourth
Comparable German and non-German controlling bodies:
complete financial year after the term of office commenced; Robert Bosch Corporation (member of the Board of Directors)
this is the Annual Shareholders’ Meeting in 2019. The Super- Stihl Holding AG & Co. KG (member of the Advisory Board)
visory Board comprises the following members:
Francesco Grioli, Ronneberg, Germany (since May 2, 2014)
Regional manager of the Rhineland-Palatinate/Saarland branch of the
Dr. Jürgen Hambrecht, Neustadt an der Weinstraße, Germany
Mining, Chemical and Energy Industries Union
(since May 2, 2014)
Chairman of the Supervisory Board of BASF SE
Anke Schäferkordt, Cologne, Germany
Former Chairman of the Board of Executive Directors of BASF SE
Member of the Executive Board of Bertelsmann SE & Co. KGaA
Supervisory Board memberships (excluding internal memberships):
Co-CEO of RTL Group S.A.
Fuchs Petrolub SE (Chairman)
Chief Executive Officer of RTL Television GmbH
Trumpf GmbH & Co. KG (Chairman)
Supervisory Board memberships (excluding internal memberships):
Daimler AG (member)
Software AG (member)
In its meetings, the Supervisory Board additionally discussed conclusion of the 2015 Annual Shareholders’ Meeting, the
the further development of the BASF Group’s business activi Supervisory Board appointed the former head of the Interme-
ties through acquisitions, divestitures and investment proj- diates division, Sanjeev Gandhi, as a further member of the
ects. The 2014 business year was marked by a number of Board of Executive Directors, effective December 1, 2014.
medium-sized divestitures which enabled BASF to undergo The term of this first-time appointment runs until the 2018
organic development and exit businesses that no longer fit Annual Shareholders’ Meeting. Furthermore, the Supervisory
with the core areas pursuant to the “We create chemistry” Board extended the term of Board of Executive Directors
strategy supported by the Supervisory Board. These include member Wayne T. Smith, originally ending in 2015, until the
the disposal of BASF’s share in the styrenic plastics supplier conclusion of the 2020 Annual Shareholders’ Meeting. Based
Styrolution to INEOS; the d isposal of BASF’s share in Ellba on preparations conducted by the Personnel Committee, the
Eastern, which produces styrene and propylene oxide in Supervisory Board determined the performance evaluation of
Singapore, to its joint venture partner Shell; the divestiture of the Board of Executive Directors for the 2014 business year.
the expandable polystyrene (EPS) business in North and Together with the return on assets of the BASF Group, this
South America; and the agreement to sell the global textile evaluation is essential in ascertaining the performance-related
chemicals business. The Board of Executive Directors component of the compensation of the Board of Executive
reported on current developments in the projects negotiated Directors.
with Gazprom at all meetings of the Supervisory Board. These
included the planned swap of BASF’s share in the jointly Committees
operated natural gas trading and storage business for a
further share in gas fields in western Siberia as well as an BASF SE’s Supervisory Board has a total of three committees:
invest ment in the South Stream gas pipeline through the 1) the committee for personnel matters of the Board of Execu
Black Sea. Both projects were no longer able to be imple- tive Directors and the granting of loans in accordance with
mented in the existing political environment and were termi- Section 89(4) of the German Stock Corporation Act (Person-
nated by both parties. nel Committee), 2) the Audit Committee and 3) the Nomina-
Major, capital-intensive investment projects were once tion Committee. Following each Committee meeting, the
again a recurring element in the reports of the Board of chairpersons of the Committees reported in detail about the
Executive Directors, such as the construction of a TDI plant in meetings and the activities of the Committees at the subse-
Ludwigshafen, Germany; an MDI plant in Chongqing, China; quent meeting of the Supervisory Board.
and an ammonia plant with Yara on the United States The Personnel Committee met four times during the
Gulf Coast. reporting period. With the exception of one meeting at which
In the meeting on July 17, 2014, we received reports on one member was absent, all committee members partici
the business prospects in the Performance Products segment pated in the meetings. At the meeting on February 20, 2014,
and especially the reorganization of the paper chemicals the committee considered adjustments to the compensation
business. Moreover, we discussed the implementation status of the Board of Executive Directors and prepared a corre-
of the “We create chemistry” strategy, introduced in 2011, sponding proposal for the Supervisory Board. At the meetings
with the Board of Executive Directors. on July 17 and October 23, 2014, the Personnel Committee
At the meeting on October 23, 2014, we thoroughly delib- particularly discussed leadership development and the com-
erated on the prospects and strategy of the Coatings division. position of the Board of Executive Directors; topics included
At the meeting on December 12, 2014, we discussed and diversity and the proper involvement of women in leadership
approved the Board of Executive Directors’ operative and positions. At the meeting of October 23, 2014, the Super
financial planning for 2015, and as usual empowered the visory Board received the proposals to appoint Sanjeev
Board of Executive Directors to procure necessary financing Gandhi to the Board of Executive Directors and extend the
in 2015. The strategic direction of the Engineering & Mainte- term of Wayne T. Smith. At the meeting of December 12,
nance function was furthermore discussed. 2014, the primary topic was the evaluation of the Board of
The Supervisory Board considered personnel issues of Executive Directors’ performance in 2014.
the Board of Executive Directors during the meetings of Feb- The Audit Committee is responsible for all the tasks
ruary 20, October 23 and December 12, 2014. Based on the listed in Section 107(3)(2) of the German Stock Corporation
recommendations of the Personnel Committee, the Super Act and in Subsection 5.3.2 of the German Corporate Gover-
visory Board at its meeting on February 20, 2014, conducted nance Code in its version of June 24, 2014. The Audit Com-
its regularly scheduled review of the structure and amount mittee met five times during the reporting period. All commit-
of the compensation of the Board of Executive Directors tee members attended all meetings. The core duties were to
and adjusted the fixed compensation and annual variable review BASF SE’s Financial Statements and Consolidated
compensation for the first time since 2011. The topic of the Financial Statements, as well as to discuss the quarterly and
October 23, 2014, meeting was the composition of the first-half financial reports with the Board of Executive Direc-
Board of Executive Directors. In view of the departure of Dr. tors prior to their publication.
Andreas Kreimeyer from the Board of Executive Directors on
34 BASF SE Financial Statements 2014
At the meeting on February 24, 2015, the auditor reported in Corporate governance and Declaration of
detail on its audits of BASF SE’s consolidated and individual Conformity
financial statements for the 2014 business year and discussed
the audit’s results with the Audit Committee. The Supervisory Board places great value on ensuring good
Other important activities included advising the Board of corporate governance: In 2014, we were therefore once again
Executive Directors on accounting issues and the internal intensely engaged with the corporate governance standards
control system. The internal auditing system and compliance practiced in the company and with the implementation of the
in the BASF Group were each a focus at one meeting of the German Corporate Governance Code’s recommendations
Audit Committee. In these meetings, the head of the Corpo- and suggestions. At our meeting of October 24, 2014, we
rate Audit department and the Chief Compliance Officer discussed the current recommendations and proposals made
reported to the Audit Committee and answered its questions. for the German Corporate Governance Code and their imple-
In its meeting of July 22, 2014, the Audit Committee charged mentation at BASF.
KPMG – the auditor elected at the Annual Shareholders’ At its meeting of December 12, 2014, the Supervisory
Meeting – with the audit for the 2014 reporting year and Board approved the joint Declaration of Conformity by the
agreed on the auditing fees. The focus areas for the annual Supervisory Board and the Board of Executive Directors in
audit were discussed and defined together with the auditor. accordance with Section 161 of the German Stock Corpora-
The Audit Committee approved certain non-audit services tion Act, and carried out assessments of efficiency and inde-
that go beyond the annual audit and authorized the Board of pendence. BASF complies with the recommendations of the
Executive Directors to engage KPMG for such services. The German Corporate Governance Code in its version of June
authorization of each service applies for one reporting year 24, 2014, without exception.
and is limited in amount. Other services provided by the audi- The entire Declaration of Conformity is rendered on page 21 and can
also be found at basf.com/governance_e.
tor must be individually approved by the Audit Committee.
Furthermore, the committee recommended to the S upervisory
Board that KPMG once again be nominated for the election of An important aspect of good corporate governance is the
the auditor at the Annual Shareholders’ Meeting in 2015. independence of Supervisory Board members and their free-
The Audit Committee once again conducted a self-evalu- dom from conflicts of interest. According to estimations of the
ation of its activities in 2014. No new steps were found to be Supervisory Board, all of its members can be considered
necessary in terms of the duties of the committee or the independent as defined by the German Corporate Gover-
content, frequency and procedure of meetings. nance Code. The criteria used for this evaluation can be found
The Nomination Committee is responsible for preparing in the Corporate Governance Report on page 17. In cases
candidate proposals for the election of those Supervisory where Supervisory Board members hold supervisory or
Board members who are elected by the Annual Shareholders’ management positions at companies with which BASF has
Meeting. The Nomination Committee is guided by the objec- business relations, we see no impairment of their indepen-
tives for the composition of the Supervisory Board that were dence. The scope of these b usinesses is relatively marginal
adopted by the Supervisory Board in 2010, revised in 2012 and furthermore takes place under conditions similar to those
and adjusted to conform to the new recommendations of the of a third party. The Corporate Governance Report of the
German Corporate Governance Code. With a view to the BASF Group provides extensive information on BASF’s cor-
regular election of the Supervisory Board members conduct- porate governance. It also includes the Compensation R eport,
ed at the Annual Shareholders’ Meeting on May 2, 2014, the containing full details on the compensation for the Board of
Nomination Committee was intensely occupied with the Executive Directors and the Supervisory Board.
requirements for its composition in 2013 and at the beginning
of 2014, considering the search for, and selection of, persons
who would complete the required profile of the Supervisory
Board as a whole. The selection of candidates took place at
the meeting on February 19, 2014, including a proposal for
the election of the future Chairman of the Supervisory Board.
The Supervisory Board accepted the Nomination Commit-
tee’s suggestion in unmodified form for its candidate proposal.
The nominated candidates were all elected by a large majority
at the Annual Shareholders’ Meeting.
BASF SE Financial Statements 2014 35
Balance Sheet
Assets (million €)
Notes
Accounting principles: The Financial Statements of BASF SE are prepared in accordance with the German Commercial Code
(Handelsgesetzbuch, HGB) and the German Stock Corporation Act (Aktiengesetz, AktG). The Statement of Income is prepared
using the cost-of-sales method.
Revenue recognition: Revenues from goods or services are Property, plant and equipment: These are measured at
recognized upon the transfer of ownership and risk to the buyer acquisition or production cost less depreciation over their
or when the services are rendered. Allowances are made for estimated useful lives. In 2009, fixed assets whose costs
rebates and other trade discounts. Provisions are recognized to exceeded €150 but were less than €1,000 were allocated to
cover probable risks from the return of products, future w
arranty a low-value asset pool and depreciated on a straight-line
obligations, and other claims, taking into account the individual basis over five years. Additions as of January 1, 2010, that
circumstances. cost more than €150 but not more than €410 are depreciated
Intangible assets: These are valued at cost less straight- immediately in the year of purchase. Items that cost less than
line amortization. In 2014, the weighted average amortization €150 are recognized directly as expenses. Movable deprecia-
period was 10 years and was based on the following useful ble fixed assets that are functionally integrated are treated as
lives: a single asset item.
The cost of self-constructed plants includes direct costs,
2014 2013
appropriate allocations of material and manufacturing costs,
Goodwill 12 years 12 years
depreciation of fixed assets provided this is necessitated by
Software 4 years 3 years
production, and a share of the general and administrative
Patents, licenses, know-how
costs of the divisions associated with the construction of
other rights 9 years 9 years the plants. Financing costs, costs for social services, costs
for voluntary social benefits and pension costs are not
capitalized.
The average useful life of 12 years for goodwill reflects the Both movable and immovable fixed assets are d epreciated
future economic use potential of intangible goods. The useful using the straight-line method. Declining-balance d epreciation
lives of individual goodwill items are determined by the of additions from previous years is continued. For declining-
expected economic use of the acquired businesses or are balance depreciations, a systematic transition to straight-line
based on expert opinions of the useful lives of patents, depreciation takes place if this results in higher depreciation
licenses, know-how and other rights purchased as part of the amounts.
acquisition. The weighted average depreciation periods were as fol-
Impairments are made when there is an other-than- lows:
temporary impairment. If the reason for the impairment no
longer exists in subsequent years, the asset is written up to 2014 2013
an amount which may not exceed the amortized cost. For Buildings and structural
goodwill, the lower carrying amount is retained. installations 23 years 23 years
BASF SE does not make use of the optional right to cap- Machinery and technical equipment 11 years 11 years
italize internally generated intangible assets forming part of Factory and office equipment and
fixed assets. other facilities 9 years 10 years
BASF SE Financial Statements 2014 39
Impairments of the lower fair value are made when there is an Receivables and other assets: These are generally carried
other-than-temporary impairment. If the reason for the impair- at their nominal value. Notes receivable and loan receivables
ment no longer exists in subsequent years, the asset is written generating no or low interest are discounted to their present
up to an amount which may not exceed the amortized cost. values. For risks of collectability, transfer risks and general
Financial assets: In accordance with the principle of indi- credit risks, appropriate valuation allowances and write-
vidual valuation, shares in affiliated companies and sharehold- downs are carried out to take into account lower fair values.
ings are carried at cost, or in the case of an other-than- Liquid funds: This item includes marketable securities,
temporary impairment, at the lower fair value. Interest-bearing cash at banks and cash on hand. Marketable securities are
loans are recognized at cost; loans bearing no interest or measured at cost. They are recognized at quoted, market or
below market interest rates are recognized at present value. fair values if these are lower than cost. Cash on hand and
Existing risks are recognized through an impairment loss bank balances are measured at nominal costs.
based on the estimated fair value of the loan. If the reason for Deferred taxes: These are recorded for temporary differ-
the impairment no longer exists in subsequent years, the ences between the valuation of assets and liabilities in the
asset is written up to an amount which may not exceed the Financial Statements and the corresponding carrying values
acquisition cost. for tax purposes. Deferred tax assets are recognized if the net
Financial activities are shown in the Statement of Income temporary difference is an asset balance. Deferred taxes from
under income from shareholdings, interest result and miscel- subsidiary companies of BASF SE are not recognized; these
laneous financial result. are accounted for within the subsidiary companies.
Inventories: They are carried at cost. Inventories are Offsetting of assets as well as income and expenses:
recognized at quoted, market or fair values if these are lower Assets that cannot be accessed by any other creditors and
than cost. For raw materials and factory supplies, fair values that only serve to meet debts allocated to these assets arising
constitute the replacement costs. Merchandise is recognized from obligations related to pensions, early retirement pro-
at the expected sales proceeds less costs to be incurred prior grams and working-time accounts are measured at fair value
to sale or lower replacement costs. Work in process and and offset with these debts. The fair value of the plan assets
finished goods are recognized at the expected sales proceeds generally corresponds to the market price. If there is no active
less costs to be incurred prior to sale or lower reproduction market, the fair value is calculated using options pricing mod-
cost. The acquisition or production costs of raw materials as els such as the Black-Scholes model. If the obligation is found
well as work in process, finished goods and merchandise are to exceed the plan assets, the remaining difference is reported
determined by the last-in-first-out (LIFO) method. Factory as part of provisions. If the plan assets exceed the corre-
supplies are carried predominantly at average cost. To cover sponding obligation, the difference is reported as an excess
storage risks, valuations are adjusted downward based on of plan assets over obligations.
coverage and turnover analyses. For pensions, early retirement programs and working-time
In addition to direct costs, production costs include an accounts, income and expenses from plan assets are offset
appropriate allocation of overhead production costs – includ- with the income and expenses of the corresponding obliga-
ing the general administrative expenses of each production tion. These balances are reported under the interest result.
unit – using normal capacity utilization rates for the production Special reserves: The special reserves were maintained
plants. Furthermore, depreciation of fixed assets is reported pursuant to Section 67(3)(1) of the Introductory Law to the
in cost of sales provided this is necessitated by production. German Commercial Code (EGHGB), as these were estab-
Financing costs, social services, voluntary social benefits and lished before the year in which the conversion to the provisions
pensions are not included in production costs. of the Act to Modernize Accounting Law (BilMoG) took place.
Construction in progress pertains especially to chemical This referred primarily to transmissions of revealed inner
plants under construction for BASF Group companies. Profits reserves in accordance with Section 6b of the German Income
are recognized upon the final invoicing of a project or the Tax Act (Einkommenssteuergesetz, EStG). Since January 1,
invoicing of part of a project. Expected losses are recognized 2010, no new special reserves have been established.
by write-downs to the lower fair values.
40 BASF SE Financial Statements 2014
Provisions: Provisions for pensions are determined on the Translation of foreign-currency items: The cost of assets
basis of actuarial assumptions made according to the interna- acquired in foreign currencies and revenues from sales in
tionally accepted projected unit credit method. The obliga- foreign currencies are recorded at the exchange rate on the
tions are valued using assumptions regarding future pay and date of the transaction.
pension increases. The valuation is based on the 2005 G Current foreign-currency receivables and liabilities are
mortality tables by Prof. Dr. Klaus Heubeck, modified by the valued at the average spot currency exchange rate on the
mortality and invalidity expectations for the BASF population. balance sheet date. Noncurrent foreign-currency receivables
The discount rate is the average market interest rate of the are recorded at the rate prevailing on the acquisition date or
past seven years as published by Deutsche Bundesbank with at the rate on the balance sheet date if lower. Noncurrent
an assumed residual period of 15 years. The obligations as of foreign-currency liabilities are recorded at the rate prevailing
December 31, 2014, were valued using a discount rate of on the acquisition date or at the rate on the balance sheet
4.53%. Indirect pension obligations are not recognized as date if higher. Foreign-currency receivables or liabilities that
liabilities, pursuant to the optional right under Article 28(1)(2) are hedged are carried at hedge rates.
of the EGHGB. Derivative financial instruments: Derivative financial
Tax provisions are determined for German trade income instruments are treated as pending transactions and are gen-
tax and German corporate income tax based on the expected erally not recorded as assets or liabilities. The associated
trade earnings and the expected taxable corporate income. underlying transactions and derivatives are combined into
Other provisions are recognized for the expected amounts valuation units. Profits from hedging transactions that cannot
of contingent liabilities and probable losses from pending be allocated to a particular underlying transaction are only
transactions, as well as to cover omitted maintenance proce- realized upon maturity. Unrealized losses from derivative
dures as of the end of the year, which will be incurred within financial instruments are recognized through profit or loss and
the first three months of the following year. The amounts included in provisions, provided they are not combined into
provided are based on reasonable commercial judgment of valuation units and the unrealized losses are not offset by
the amount necessary to meet obligations, while taking into changes in value of the underlying transactions.
consideration expected future price and cost increases. Pro- The use of derivative financial instruments to hedge
visions with a maturity of more than one year are discounted against foreign currency, interest rate and price risks is
in accordance with their maturity with the average market described in detail in Note 23 – Derivative Instruments.
interest rate of the past seven business years, as published Use of estimates and assumptions in the preparation
by the Deutsche Bundesbank. of the Financial Statements: The carrying amounts of
Provisions are established for environmental protection assets, liabilities and provisions, contingent liabilities and
measures or risks if it is likely that the measures are necessary other financial obligations in the Financial Statements depend
to comply with legal or regulatory obligations, provided these on the use of estimates and assumptions. They are based on
measures do not lead to costs that must be capitalized. the circumstances and estimates on the balance sheet date
Provisions for recultivation obligations associated with the and affect the reported amounts of income and expense
operation of landfill sites are built up in installments over the during the reporting periods. In the preparation of these
expected service lives. Financial Statements, such estimates are used in the determi-
Provisions for long-service bonuses and part-time early nation of the useful lives of property, plant and equipment and
retirement programs are calculated based on actuarial princi- intangible assets, the measurement of provisions, the carrying
ples corresponding to the projected unit credit method taking amount of investments, and other similar evaluations of
into account the rate of compensation increase and the ade- assets and obligations. Although uncertainty is properly incor-
quate periodical interest rate pursuant to Section 253(2) HGB. porated into the valuation factors, actual results can differ
Provisions for the LTI program are measured at the fair from these estimates.
values of existing options as of the balance sheet date. These Customer facilities: The energy facilities operated by
are based on the arbitrage-free valuation model according to BASF SE to produce electricity and gas are customer facilities
Black-Scholes. The amounts are accrued proportionally as for internal supply in accordance with Section 3(24b) of the
provisions over the respective vesting period. German Energy Act (Energiewirtschaftsgesetz, EnWG). BASF
Liabilities: Liabilities are recognized at the amount SE is therefore not subject to the regulatory requirements for
required for settlement. network operators under the EnWG.
BASF SE Financial Statements 2014 41
2 – Sales revenues
Other operating income rose by €143 million to €438 million, Furthermore, €13 million in out-of-period income arose from
partly as a result of the reversal of provisions amounting to reimbursement claims. Income from miscellaneous revenue-
€138 million recognized in the income statement (2013: generating activities increased by €66 million compared with
€46 million). Of this, €49 million (2013: €1 million) were related the previous year. Gains from foreign-currency transactions
to the reversal of a provision for share-price-based variable amounted to €32 million (2013: €19 million).
compensation (the LTI program) and €30 million to the rever-
sal of a provision for wage income tax obligations from previ-
ous years.
Other operating expenses were reduced by €5 million to By contrast, expenses from miscellaneous revenue-
€920 million. Expenses for share-price-based compensation generating activities were €66 million higher than in 2013.
(the LTI program) were €47 million lower than in the previous Losses of €85 million from foreign-currency transactions
year. The previous year had also included €59 million more in (2013: €11 million) resulted mainly from the hedging of future
contractual obligations to assume costs for restructuring sales and purchases in U.S. dollars. In the previous year, the
measures at BASF Group companies. development of the U.S. dollar had led to gains from
foreign-currency transactions.
42 BASF SE Financial Statements 2014
5 – Financial result
The financial result increased considerably, by €2,838 million Under interest and similar expenses, €179 million arose from
to €5,163 million. Through higher profit transfers, a dividend the balance of expenses and income related to pension obli-
payment from a subsidiary’s undistributed earnings was the gations (2013: €32 million). Expenses from unwinding the
primary factor leading to an improvement in net income from discount on other provisions amounted to €15 million (2013:
shareholdings. Counteracting this were lower dividend pay- €14 million) and were also included in interest and similar
ments in income from shareholdings. expenses. Furthermore, interest expense increased as a
In the interest result, income and expenses from plan result of issuing new bonds.
assets were offset with the income and expenses of the cor-
responding obligation.
BASF SE Financial Statements 2014 43
6 – Income taxes
Current income taxes increased in the reporting year by provisions – the realization of plan benefits and the sale of a
€254 million to €484 million as a result of BASF SE’s higher share led to higher deferred tax income. Deferred taxes result-
income as well as additions to provisions for previous years. ing from the temporary differences between valuations in the
Out-of-period expenses amounted to €27 million. In addition Financial Statements and valuations for tax purposes were as
to valuation differences – especially in plan assets and for follows:
Due to the increased average trade tax rate for domestic companies, a tax rate of 30% was applied for deferred taxes in 2014
(2013: 29%).
7 – Other information
2014 2013
Cost of raw materials, plant supplies and purchased merchandise 15,098 14,717
Cost of purchased services 2,995 2,768
18,093 17,485
2014 2013
Wages and salaries 2,602 2,628
Social security contributions and expenses for pensions and assistance 571 607
Thereof for pension benefits 162 212
3,173 3,235
44 BASF SE Financial Statements 2014
2014 2013
Nonexempt employees 25,407 25,536
Exempt employees 8,084 7,811
Apprentices 1,870 1,607
Temporary staff 220 210
35,581 35,164
Compensation for the Board of Executive Directors and Supervisory Board (million €)
2014 2013
Performance-related and fixed cash payments to the Board of Executive Directors 21.5 21.0
Market value of options granted to the Board of Executive Directors in the fiscal year on the grant date 6.0 5.5
Total compensation for the Board of Executive Directors 27.5 26.5
Service cost for members of the Board of Executive Directors 3.5 3.5
Performance-related compensation for the Board of Execu- Declaration of Conformity: The Declaration of Conformity
tive Directors is based on the return on assets for the BASF with the German Corporate Governance Code (see page 21)
Group, as well as the performance of the entire Board. Return in accordance with Section 161 of the AktG was signed by
on assets corresponds to earnings before taxes plus borrow- the Board of Executive Directors and the Supervisory Board
ing costs as a percentage of average assets. of BASF SE in December 2014, and is published online at:
The members of the Board of Executive Directors were basf.com/governance_e
granted 193,172 options under the long-term incentive (LTI)
program in 2014. The options of active and former members
of the Board resulted in income totaling €3.7 million in 2014.
In 2013, the options resulted in expenses of €10.3 million.
For more on the compensation of members of the Board of Executive
Directors, see the Compensation Report from page 22 onward
For more on the members of the Supervisory Board and Board of
Executive Directors, including their memberships on other boards,
see page 30 onward
BASF SE Financial Statements 2014 45
8 – Intangible assets
Purchased
industrial
property rights and
similar rights and Advance
values1 Goodwill payments Total
Acquisition costs
Balance as of January 1, 2014 437 655 15 1,107
Additions 96 – 16 112
Disposals 119 – – 119
Transfers 14 – (14) –
Balance as of December 31, 2014 428 655 17 1,100
Amortization
Balance as of January 1, 2014 250 318 – 568
Additions 67 61 – 128
Disposals 119 – – 119
Write-ups – – – –
Balance as of December 31, 2014 198 379 – 577
Net carrying amount as of December 31, 2014 230 276 17 523
Net carrying amount as of December 31, 2013 187 337 15 539
1
Including licenses to such rights and values
10 – Financial assets
Shareholdings increased predominantly as a result of capital The sale of investees was a particular factor countering this
increases at subsidiaries for which BASF SE serves as the development.
parent company and thus fulfills the financing function.
Miscellaneous Total
Loans to affiliated Loans to other loans and other loans and other Total
companies shareholdings financial assets financial assets financial assets
Acquisition costs
Balance as of January 1, 2014 661 2 81 744 19,471
Additions 9 1 – 10 315
Disposals 10 – . 10 307
Balance as of December 31, 2014 3 (3) – . .
Cumulative depreciation,
amortization and write-downs 663 . 81 744 19,479
Balance as of January 1, 2014
Additions 38 – 1 39 468
Disposals 9 – – 9 9
Write-ups , – . . 6
Balance as of December 31, 2014 – – – – –
Net carrying amount as of
December 31, 2014 47 – 1 48 471
Net carrying amount as of
December 31, 2014 616 . 80 696 19,008
Net carrying amount as of December
31, 2014 623 2 80 705 19,003
BASF SE Financial Statements 2014 47
11 – Inventories
Work in process, finished goods and merchandise are com- v aluation at average cost or lower quoted or market prices)
bined into one item due to the production conditions in the were €42 million for raw materials (2013: €58 million), and
chemical industry. €148 million for finished goods and merchandise (2013:
For inventories measured using the LIFO method, LIFO €180 million).
reserves (i.e., the difference between LIFO valuation and
2014 2013
Thereof remaining Thereof remaining
Million € term over 1 year term over 1 year
Accounts receivable, trade 1,782 . 1,917 .
Receivables from affiliated companies 13,220 27 9,495 33
Thereof from trade accounts receivable 2,311 – 2,029 1
Receivables from participating interests 53 – 75 –
Other assets 351 34 313 33
15,406 61 11,800 66
13 – Liquid funds
In the reporting year, marketable securities decreased by €201 million. Cash on hand and credit institution balances rose by
€124 million.
48 BASF SE Financial Statements 2014
14 – Prepaid expenses
15 – Subscribed capital
The subscribed capital of BASF SE is €1,175,652,728.32 and At the Annual Shareholders’ Meeting of May 2, 2014, share-
is divided into 918,478,694 registered shares with no par holders authorized the Board of Executive Directors, with the
value. approval of the Supervisory Board, to increase subscribed
capital by issuing new shares in an amount up to €500 million
against cash or contributions in kind through May 1, 2019.
Announcements pursuant to Section 21(1) of the The Board of Executive Directors can, following the approval
German Securities Trading Act (Wertpapierhan- of the Supervisory Board, decide on the exclusion of share-
delsgesetz, WpHG) holders’ subscription rights for these new shares in certain
predefined cases covered by the enabling resolution. Until
Pursuant to Section 21(1) WpHG, the London-based Black- now, this option has not been exercised and no new shares
Rock Investment Management (UK) Limited informed us on have been issued.
September 30, 2014, that the voting rights of the New York-
based BlackRock Inc. amounted to 6.17% as of Septem-
ber 25, 2014. Furthermore, BlackRock Investment Manage-
ment (UK) Limited informed us on September 30, 2014, that
on September 25, 2014, the voting rights of BlackRock
Holdco 2 Inc. (Wilmington, Delaware) amounted to 6.07%
and the voting rights of the New York-based BlackRock
Financial Management Inc. amounted to 6.06%.
The voting rights of BlackRock Holdco 2 Inc. and Black-
Rock Financial Management Inc. are accorded to BlackRock
Inc. in accordance with Section 22(1)(1) WpHG.
Million € 2014
Other retained earnings
Balance as of January 1 6,582
Appropriated retained earnings (as per resolution of Annual Shareholders’ Meeting 2014) 346
Balance as of December 31 6,928
Retained profits
Profits carried forward –
Net income 5,853
Appropriations to other retained earnings –
Balance as of December 31 5,853
Disclosures on amounts subject to dividend These amounts subject to dividend payout restrictions totaled
payout restrictions €472 million while freely available reserves amounted to
€7,029 million. Freely available reserves are comprised of
The difference between acquisition costs and asset plans other retained earnings and capital surplus, in accordance
measured at fair value from obligations related to pensions with Section 272(2)(4) of the German Commercial Code.
and part-time early retirement programs resulted – after sub- There is therefore no dividend payout restriction for retained
tracting deferred tax liabilities – in €62 million subject to divi- profits.
dend payout restrictions.
Deferred tax assets exceeded by €410 million the amount
of deferred tax liabilities plus deferred tax liabilities from the
measurement of plan assets at fair value.
BASF SE employees are granted basic benefits by BASF Amounts offset in the Balance Sheet as of December 31,
Pensionskasse VVaG, a legally independent BASF pension 2014:
fund that is financed from the return on its financial assets,
from members’ contributions and by the company. BASF SE Million € 2014 2013
will ensure the necessary contributions to adequately finance Fair value of pension plan assets 4,937 4,924
the benefits promised by BASF Pensionskasse VVaG. Occu- Pension obligations with plan assets 4,804 4,611
pational pension promises that exceed this are financed under Net total (excess of plan assets over
a contractual trust arrangement by BASF Pensionstreu- obligations) 133 313
hand e.V. Historical acquisition costs for pension
BASF SE approved a 1.0% per year increase in pensions plan assets 4,855 4,532
from BASF Pensionskasse VVaG.
As of December 31, 2014, pension obligations excluding plan
The valuation of the pension obligations is based on the assets amounted to €37 million.
following assumptions:
Income and expenses from plan assets are offset with Million € 2014 2013
expenses from unwinding the discount on corresponding
Income from pension plan assets 451 441
obligations in the interest result. Amounts offset in the interest Expenses from pension plan assets 220 165
result are as follows: Expenses from unwinding the discount 406 302
Net interest result (175) (26)
18 – Other provisions
2014 2013
Million € Thereof current Thereof current
Environmental protection and remediation costs 134 7 130 9
Employee obligations 766 625 887 649
Sales and purchase risks 104 104 57 57
Litigation, damage claims, guarantees and similar obligations 1 1 11 11
Maintenance and repair 19 19 19 19
Other 163 150 177 157
1,187 906 1,281 902
In the reporting year, provisions in the amount of €138 million Obligations of €502 million from working-time accounts were
were reversed in the income statement and reported under offset by assets in the same amount. The historical acquisition
other operating income (2013: €46 million). costs for the assets amounted to €434 million. The assets
The item other primarily consists of provisions for onerous mostly comprise mixed funds. The interest result contains
contracts and outstanding invoices. income of €46 million from the plan assets, offset by expenses
The obligations for early-retirement programs amounted of €46 million from additions to provisions.
to €119 million while the fair value of the assets to be offset
was €115 million. The historical acquisition costs for the
assets amounted to €107 million. The assets comprise fixed
income funds. Amounts offset in the interest result are as
follows:
19 – Liabilities
2014 2013
Commercial Paper 124 1,289
4.5% Euro Bond 2006/2016 500 500
Variable-rate Euro Bond 2013/2016 200 200
4.25% Euro Bond 2009/2016 200 200
Variable-rate Euro Bond 2014/2017 300 –
5.875% GBP Bond 2009/2017 434 434
4.625% Euro Bond 2009/2017 300 300
1.375% GBP Bond 2014/2017 313 –
Variable-rate Euro Bond 2013/2018 300 300
1.5% Euro Bond 2012/2018 1,000 1,000
1.375% Euro Bond 2014/2019 750 –
Variable-rate Euro Bond 2013/2020 300 300
1.875% Euro Bond 2013/2021 700 700
2% Euro Bond 2012/2022 1,250 1,000
2.5% Euro Bond 2014/2024 500 –
3.675% NOK Bond 2013/2025 189 189
2.875% Euro Bond 2013/2033 200 200
3% Euro Bond 2013/2033 500 500
3.25% Euro Bond 2013/2043 200 200
3.89% U.S. Private Placement Series A 2013/2025 184 184
4.09% U.S. Private Placement Series B 2013/2028 515 515
4.43% U.S. Private Placement Series C 2013/2034 221 221
Bonds and other liabilities to the capital market 9,180 8,232
Liabilities to credit institutions 100 59
9,280 8,291
2014 2013
Accounts payable, trade 2,018 2,028
Miscellaneous liabilities 9,893 10,050
11,911 12,078
2014 2013
Advances received on orders 9 19
Liabilities to participating interests 26 59
Miscellaneous liabilities 288 266
Thereof from taxes 60 72
Thereof related to social security 9 10
323 344
2014 2013
Less than 1 year More than 1 year Less than 1 year More than 1 year
Financial indebtedness 224 4,759 1,348 4,009
Accounts payable, trade 683 , 747 –
Liabilities to affiliated companies 11,408 – 10,425 –
Advances received on orders 9 – 19 –
Liabilities to participating interests 26 – 59 –
Miscellaneous liabilities 270 3 255 1
12,620 4,762 12,853 4,010
52 BASF SE Financial Statements 2014
2014 2013
Other liabilities . .
As of December 31, 2014, the following shares in investment assets of more than 10% were held according to Sections 1 and
2(9) of the German Investment Act (InvG):
Fair value/
carrying amount as of Dividend payment
Million € December 31, 2014 2014 Returnable daily
Fixed income funds 2,230 17 yes
Equity funds 1,502 165 yes
Mixed funds 496 – yes
The shares serve as plan assets for obligations from pensions, part-time early retirement programs and working-time accounts.
The following contingent and other liabilities are shown at nominal value.
2014 2013
Bills of exchange 1 3
Thereof to affiliated companies – –
Guarantees 3,178 4,371
Thereof to affiliated companies 3,171 4,363
Warranties 560 560
Thereof to affiliated companies 559 559
3,739 4,934
Contingent liabilities are primarily related to guarantees for The risk of claims against contingent liabilities was assessed
bonds issued by BASF Finance Europe N. V. (based in as low on the basis of the existing knowledge about the
Arnhem, Netherlands), which serve to finance the BASF
balance sheet structure, financial position and results of
Group. Contingent liabilities are entered into only after careful operations of the subsidiaries. Reasonably concrete risks at
consideration of risks and only in connection with the busi- the time the balance sheet is prepared are recognized through
ness activities of BASF SE or its affiliated companies. provisions in the balance sheet. As of December 31, 2014, no
provisions were necessary.
2014 2013
Other financial obligations 902 1,217
Thereof to affiliated companies 3 12
BASF SE Financial Statements 2014 53
2014 2013
Long-term purchase obligations 4,347 4,953
Thereof to affiliated companies – –
BASF SE purchases raw materials worldwide through long-term contracts and spot markets.
22 – Related-party transactions
Since the 2010 business year, BASF SE has granted profit participation capital to BASF Pensionskasse VVaG. As of December
31, 2014, profit participation capital reported under loans amounted to €80 million.
23 – Derivative instruments
Use of derivative instruments To ensure effective risk management, risk positions are cen-
tralized at BASF SE and certain Group companies. Contract-
BASF SE is exposed to foreign-currency, interest-rate and ing and execution of derivative financial instruments for
commodity-price risks during the normal course of business. hedging purposes are conducted according to internal guide-
These risks are hedged through a centrally determined strat- lines, and are subject to strict control mechanisms.
egy employing derivative instruments. In addition, derivative The risks arising from the underlying transactions and the
instruments are used to replace primary financial instruments, derivative transactions concluded to hedge them are moni-
such as fixed-interest securities. Hedging is only employed for tored constantly. The same is true of the derivative instru-
underlying transactions from the operating business, cash ments that are used to replace transactions in primary finan-
investments, and financing as well as for planned sales and cial instruments. For this purpose, market quotations or
raw material purchases. computer or mathematical models are used to determine the
Where derivatives have a positive market value, BASF SE current market values not only of the underlying transactions
is exposed to credit risks in the event of nonperformance of but also of the derivative transactions, and these are com-
their counterparts. This credit risk for positive market values is pared with each other.
minimized by trading contracts exclusively with creditworthy
banks and partners within predefined credit limits and by the
use of collateral.
The fair values correspond to the difference between the cost term to maturity. In the case of unlisted contracts, fair value
and redemption value, which is determined from market quo- corresponds to the redemption value in the event of prema-
tations or by the use of options pricing models such as the ture cancellation.
Black-Scholes model. They are based on the exchange rates The nominal values are the totals of the purchases and
published by the European Central Bank and the applicable sales of the particular derivatives on a gross basis.
market interest rates and volatilities based on the remaining
54 BASF SE Financial Statements 2014
Foreign currency derivatives are primarily aimed at hedging Acquisition costs of €31 million for derivatives were capital-
the exchange rate risk against the U.S. dollar. Commodity ized and partly offset against the corresponding obligations.
derivatives are used to hedge purchase and sales market Provisions amounting to €51 million were recognized for
price risks. Index swaps were used in the previous year to expected losses from currency fluctuations. Losses of
replace primary financial instruments, especially in duplication €11 million were recognized as liabilities under miscellaneous
of fixed-rate securities. liabilities.
When it transferred the styrenics activities to the joint To hedge risks from cash flow and changes in fair value for
venture with INEOS Industries Holdings Limited (INEOS), certain underlying positions in the balance sheet, these are
BASF SE negotiated options for the disposal of shareholdings. combined with hedging transactions as micro hedges, as
As pending transactions, these were not recorded as liabilities they have similar significant risk parameters.
since no loss could arise from exercising them. In June 2014, Accounting treatment follows the net hedge presentation
INEOS exercised the purchase option, and the sales transac- method. The retrospective and prospective effectiveness was
tion was successfully concluded in November 2014. These determined using the critical terms match method; no m aterial
options therefore no longer exist as of December 31, 2014. ineffectiveness was found.
The receivables and liabilities hedged with foreign currency lion). Also not included are currency option contracts for
forward contracts are due within a year. Interest rate swaps hedging future sales and purchases in U.S. dollars (nominal
were concluded to hedge internal BASF Group loans as well value: €1.69 billion). The term of these contracts is generally
as variable-rate bonds. Financial indebtedness in foreign less than one year.
currencies was hedged using combined interest and In addition, commodity derivatives that are used to hedge
cross-currency swaps. price risks with a nominal value of €0.21 million and the
The table does not include foreign currency forward and underlying expected high-probability purchase and sales
currency option contracts concluded with subsidiaries which transactions were combined into a valuation unit.
are also inversely concluded with external contractual part-
ners (respective nominal values: €3.14 billion and €0.46 bil-
Information on the services provided by KPMG AG Wirtschaftsprüfungsgesellschaft to BASF SE can be found in Note 33 of the
Consolidated Financial Statements of the BASF Group.
BASF SE Financial Statements 2014 55
25 – BASF SE List of Shares Held 2014 pursuant to Sections 285(11) and (11a) of the German
Commercial Code
The earnings of companies acquired in 2014 are reported as of the date of acquisition. The List of Shares Held contains all of BASF
SE‘s direct and indirect shareholdings as well as affiliated companies accounted for in the Consolidated Financial Statements. In
the separate financial statements of BASF SE, financial assets only include direct shareholdings. Information on the values of equity
and earnings after taxes generally refer to IFRS values.
Partici
pating Thereof Net
interest BASF SE Equity income Currency
Company Headquarters (%) (%) (million) (million) (ISO code)
Germany
astora GmbH & Co. KG Kassel 50.02 0.00 1.1 * EUR
Axaron Bioscience AG Ludwigshafen (Rhine) 99.97 0.00 16.6 * EUR
BASF Agro Trademarks GmbH Ludwigshafen (Rhine) 100.00 0.00 5.0 * EUR
BASF Akquisitions GmbH Ludwigshafen (Rhine) 100.00 0.00 431.3 * EUR
BASF Battery Technology Investment GmbH & Co. KG Ludwigshafen (Rhine) 100.00 0.00 0.0 (0.2) EUR
BASF Bautechnik GmbH Trostberg 100.00 0.00 1.2 * EUR
BASF Beteiligungsgesellschaft mbH Ludwigshafen (Rhine) 100.00 100.00 291.2 * EUR
BASF Business Services GmbH Ludwigshafen (Rhine) 100.00 0.00 (48.3)** * EUR
BASF Business Services Holding GmbH Ludwigshafen (Rhine) 100.00 0.00 51.5 * EUR
BASF Catalysts Germany GmbH Hanover 100.00 0.00 321.6 * EUR
BASF Coatings GmbH Münster 100.00 10.00 145.7 * EUR
BASF Construction Solutions GmbH Trostberg 100.00 0.00 365.9 * EUR
BASF Finance Malta GmbH Ludwigshafen (Rhine)*** 100.00 100.00 5,048.0 48.5 EUR
BASF Grenzach GmbH Grenzach-Wyhlen 100.00 0.00 (17.0)** * EUR
BASF Handels- und Export GmbH Ludwigshafen (Rhine) 100.00 100.00 4,067.3 * EUR
BASF Immobilien Pigment GmbH Ludwigshafen (Rhine) 100.00 0.00 10.8 * EUR
BASF Isocyanate China Investment GmbH Ludwigshafen (Rhine) 100.00 0.00 0.0 * EUR
BASF Lampertheim GmbH Lampertheim 100.00 0.00 112.4 * EUR
BASF Leuna GmbH Leuna 100.00 0.00 12.9 * EUR
BASF Ludwigshafen Grundbesitz SE & Co. KG Ludwigshafen (Rhine) 100.00 99.99 7.7 0.3 EUR
BASF Niedersächsische Grundbesitz GmbH Ludwigshafen (Rhine) 100.00 0.00 8.9 * EUR
BASF Oldenburger Grundbesitz GmbH Oldenburg 100.00 0.00 9.8 * EUR
BASF Performance Polymers GmbH Rudolstadt 100.00 0.00 42.0 * EUR
BASF Personal Care and Nutrition GmbH Monheim 100.00 0.00 8.3 * EUR
BASF PharmaChemikalien GmbH & Co. KG Ludwigshafen (Rhine) 100.00 100.00 11.7 3.6 EUR
BASF Pigment GmbH Ludwigshafen (Rhine) 100.00 0.00 (4.1)** * EUR
BASF Plant Science Company GmbH Ludwigshafen (Rhine) 100.00 100.00 188.6 * EUR
BASF Plant Science GmbH Ludwigshafen (Rhine) 100.00 0.00 3.1 * EUR
BASF Polyurethane Licensing GmbH Monheim 100.00 0.00 54.4 53.9 EUR
BASF Polyurethanes GmbH Lemförde 100.00 10.00 63.5 * EUR
BASF Schwarzheide GmbH Schwarzheide 100.00 10.00 241.9 * EUR
BASF Services Europe GmbH Berlin 100.00 0.00 (1.8)** * EUR
BASF Specialty Chemicals Marketing GmbH Ludwigshafen (Rhine) 100.00 0.00 99.5 * EUR
BASF Trostberger Grundbesitz GmbH Ludwigshafen (Rhine) 100.00 6.00 19.8 * EUR
BASF US Verwaltung GmbH Ludwigshafen (Rhine) 100.00 0.00 128.3 * USD
BASF watertechnologies GmbH & Co. KG Ludwigshafen (Rhine) 100.00 0.00 0.5 (0.4) EUR
BASF Wolman GmbH Sinzheim 100.00 10.00 (1.1)** * EUR
Partici
pating Thereof Net
interest BASF SE Equity income Currency
Company Headquarters (%) (%) (million) (million) (ISO code)
BPG Immobilien GmbH Ludwigshafen (Rhine) 100.00 10.00 9.6 * EUR
BPS-Finanzbeteiligungsgesellschaft mbH Ludwigshafen (Rhine) 100.00 0.00 9.3 * EUR
BTC Europe GmbH Monheim 100.00 0.00 0.7 * EUR
Cognis Holding GmbH Ludwigshafen (Rhine) 100.00 0.00 261.6 * EUR
Cognis International GmbH Monheim 100.00 0.00 477.3 * EUR
Cognis IP Management GmbH Monheim 100.00 0.00 143.0 38.3 EUR
Construction Research & Technology GmbH Trostberg 100.00 0.00 312.6 * EUR
E & A International Explorations- und Produktions-GmbH Kassel 100.00 0.00 393.3 * EUR
Grünau Illertissen GmbH Illertissen 100.00 0.00 46.2 * EUR
Guano-Werke GmbH & Co. KG Ludwigshafen (Rhine) 100.00 0.00 17.8 (0.5) EUR
hte GmbH the high throughput experimentation company Heidelberg 100.00 0.00 18.0 * EUR
inge GmbH Greifenberg 100.00 0.00 50.1 * EUR
LUWOGE GmbH Ludwigshafen (Rhine) 100.00 10.00 152.3 * EUR
Metanomics GmbH Berlin 100.00 0.00 (0.2)** * EUR
OPAL Gastransport GmbH & Co. KG Kassel 50.02 0.00 15.5 * EUR
PCI Augsburg GmbH Augsburg 100.00 0.00 97.8 * EUR
Untertage-Speicher-Gesellschaft mbH Kassel 100.00 0.00 4.9 1.4 EUR
W & G Beteiligungs-GmbH & Co. KG Kassel 50.02 0.00 642.4 1,600.4 EUR
W & G Transport Holding GmbH Kassel 50.02 0.00 50.00*** * EUR
WIGA Transport Beteiligungs-GmbH & Co. KG Kassel 50.02 0.00 1,619.2 99.5 EUR
WINGAS GmbH Kassel 50.02 0.00 49.6 67.0 EUR
WINGAS Holding GmbH Kassel 50.02 0.00 237.8 (24.0) EUR
Wintershall Erdgas Beteiligungs-GmbH Kassel 100.00 0.00 260.1 * EUR
Wintershall Holding GmbH Kassel 100.00 10.29 1,483.0 * EUR
Wintershall Middle East GmbH Kassel 100.00 0.00 0.0 * EUR
Wintershall Russia Holding GmbH Kassel 100.00 0.00 0.0 * EUR
Wintershall Vermögensverwaltungsgesellschaft mbH Kassel 100.00 0.00 0.0 * EUR
Rest of Europe
Allied Colloids Group Limited Cheadle, England 100.00 0.00 260.2 (1.3) GBP
BASF A/S Copenhagen, Denmark 100.00 100.00 1,420.2 270.2 DKK
BASF AB Göteborg, Sweden 100.00 100.00 67.1 16.4 SEK
BASF Agricultural Specialities Limited Littlehampton, England 100.00 0.00 42.2 0.8 GBP
BASF Agricultural Specialities S.A.S. Colomiers, France 100.00 0.00 25.0 (0.4) EUR
BASF Agri-Production S.A.S. Ecully, France 100.00 0.00 39.0 3.2 EUR
BASF Agro B.V. Arnhem, Netherlands 100.00 0.00 1,404.7 127.5 EUR
BASF Agrochemical Products B.V. Arnhem, Netherlands 100.00 0.00 394.2 277.0 USD
BASF Antwerpen N.V. Antwerp, Belgium 100.00 0.00 4,700.4 639.5 EUR
BASF AS Oslo, Norway 100.00 100.00 2,169.4 (2,349.1) NOK
BASF Battery Integration B.V. Arnhem, Netherlands 100.00 0.00 6.7 3.3 EUR
BASF Beauty Care Solutions France S.A.S. Lyon, France 100.00 0.00 48.0 10.8 EUR
BASF Belgium Coordination Center Comm. V. Antwerp, Belgium 100.00 0.00 14,593.1 106.9 EUR
BASF Catalysts Asia B.V. Arnhem, Netherlands 100.00 0.00 315.4 26.5 EUR
BASF Catalysts Canada B.V. Arnhem, Netherlands 100.00 0.00 367.7 0.0 EUR
BASF Catalysts UK Holdings Limited London, England 100.00 0.00 29.0 2.2 GBP
BASF Coatings Ltd. Flintshire, Wales 100.00 0.00 17.1 5.0 GBP
BASF Coatings S.A. Guadalajara, Spain 100.00 0.00 58.2 16.0 EUR
BASF Coatings Spa Cesano Maderno, Italy 100.00 0.00 13.7 (0.1) EUR
BASF Construction Chemicals (UK) Ltd. Cheadle, England 100.00 0.00 7.0 13.5 GBP
BASF Construction Chemicals España S.L. L’Hospitalet del Llobregat, Spain 100.00 0.00 158.4 (7.4) EUR
BASF Construction Chemicals Europe AG Zurich, Switzerland 100.00 0.00 249.4 (20.3) CHF
BASF Construction Chemicals Italia Spa Treviso, Italy 100.00 0.00 10.6 0.1 EUR
BASF Española S.L. Barcelona, Spain 100.00 100.00 327.5 61.8 EUR
BASF Finance Europe N.V. Arnhem, Netherlands 100.00 100.00 8.8 1.8 EUR
Partici
pating Thereof Net
interest BASF SE Equity income Currency
Company Headquarters (%) (%) (million) (million) (ISO code)
BASF France S.A.S. Levallois-Perret Cedex, France 100.00 100.00 559.1 (11.5) EUR
BASF Health and Care Products France S.A.S. Levallois-Perret Cedex, France 100.00 0.00 21.9 (1.0) EUR
BASF Hellas S.A. Maroussi, Greece 100.00 100.00 3.3 1.7 EUR
BASF Hungária Kft. Budapest, Hungary 100.00 100.00 5,690.7 513.6 HUF
BASF Industrial Metals LLC Moscow, Russian Federation 100.00 0.00 59.9 18.4 RUB
BASF Intertrade AG Zug, Switzerland 100.00 100.00 111.9 75.1 USD
BASF Ireland Limited Cork, Ireland 100.00 100.00 80.1 8.6 EUR
BASF Italia S.p.A. Cesano Maderno, Italy 100.00 100.00 397.6 27.0 EUR
BASF Metal Forwards Ltd. London, England 100.00 0.00 53.9 (0.5) USD
BASF Metals GmbH Zug, Switzerland 100.00 0.00 47.1 5.0 USD
BASF Metals Ltd. London, England 100.00 0.00 88.6 18.2 USD
BASF Metals Recycling Ltd. Cinderford, England 100.00 0.00 2.4 (3.8) GBP
BASF Nederland B.V. Arnhem, Netherlands 100.00 100.00 9,726.5 1,225.1 EUR
BASF Operations B.V. Arnhem, Netherlands 100.00 0.00 44.9 21.8 EUR
BASF Österreich GmbH Vienna, Austria 100.00 1.00 27.2 0.9 EUR
BASF Oy Helsinki, Finland 100.00 100.00 29.6 5.6 EUR
BASF Performance Products France S.A. Levallois-Perret Cedex, France 100.00 0.00 43.1 0.5 EUR
BASF Performance Products GmbH Zwentendorf, Austria 100.00 0.00 18.3 0.4 EUR
BASF Performance Products plc Cheadle, England 100.00 0.00 49.0 (1.3) GBP
BASF Pharma (Callanish) Ltd. Cheadle, England 100.00 0.00 (2.3) (8.5) GBP
BASF Pharma (Evionnaz) S.A. Evionnaz, Switzerland 100.00 0.00 31.6 5.0 CHF
BASF Pharma (St. Vulbas) S.A.S. Saint-Vulbas, France 100.00 0.00 21.3 0.0 EUR
BASF Pharma Belgium N.V. Antwerp, Belgium 100.00 0.00 52.1 4.4 EUR
BASF plc Cheadle, England 100.00 0.00 100.2 25.2 GBP
BASF Poliuretán Hungária Kft. Solymár, Hungary 100.00 0.00 419.6 (4.2) HUF
BASF Poliuretani Italia Spa Villanova d'Asti, Italy 100.00 0.00 22.1 6.8 EUR
BASF Polska Sp. z o.o. Warsaw, Poland 100.00 100.00 252.3 81.1 PLN
BASF Polyurethanes U.K. Ltd. Alfreton, England 100.00 0.00 4.5 2.0 GBP
BASF Portuguesa S.A. Prior Velho, Portugal 100.00 0.00 0.4 0.7 EUR
BASF Schweiz AG Basel, Switzerland 100.00 0.00 562.2 30.1 CHF
BASF Slovensko spol. s.r.o. Bratislava, Slovakia 100.00 100.00 9.4 0.3 EUR
BASF spol. s.r.o. Prague, Czech Republic 100.00 100.00 234.3 65.5 CZK
BASF Stavebni hmoty Ceská republika s.r.o. Chrudim, Czech Republic 100.00 0.00 433.8 32.1 CZK
BASF T.O.V. Kiev, Ukraine 100.00 0.00 (220.2) (311.7) UAH
BASF Taiwan B.V. Arnhem, Netherlands 100.00 0.00 130.0 25.8 EUR
BASF Türk Kimya Sanayi ve Ticaret Ltd. Sti. Istanbul, Turkey 100.00 0.00 320.2 18.2 TRY
BASF UK Holdings Ltd. Cheadle, England 100.00 100.00 (201.5) (107.1) GBP
BASF UK Ltd. Cheadle, England 100.00 0.00 66.0 11.9 GBP
Becker Underwood (UK) Limited Littlehampton, England 100.00 0.00 57.9 0.0 GBP
BU International Holding Company Littlehampton, England 100.00 0.00 89.2 (0.5) GBP
Chemicals Finance Belgium Comm.V. Antwerp, Belgium 100.00 0.00 8,037.0 17.8 USD
Ciba Holding Nederland B.V. Maastricht, Netherlands 100.00 0.00 17.3 0.0 EUR
Ciba Specialty Chemicals Finance Luxembourg S.A. Luxembourg, Luxembourg 100.00 0.00 33.6 (7.0) EUR
Ciba Specialty Chemicals Overseas Ltd. Cheadle, England 100.00 0.00 0.0 0.0 GBP
Ciba Specialty Chemicals Water Treatments Ltd. Bradford, England 100.00 0.00 269.6 0.0 GBP
Ciba UK Investment Ltd. Cheadle, England 100.00 0.00 (186.7) 1.9 GBP
Cognis B.V. Arnhem, Netherlands 100.00 0.00 892.0 (3.2) EUR
Cognis Holdings UK Ltd. Southampton, England 100.00 0.00 20.5 (0.1) GBP
Cognis Scandinavia A.S. Drammen, Norway 100.00 0.00 33.4 0.4 NOK
Cosmetic Rheologies Ltd. Bury, England 100.00 0.00 2.4 0.0 GBP
CropDesign N.V. Zwijnaarde, Belgium 100.00 0.00 53.9 0.1 EUR
Esuco Beheer B.V. Arnhem, Netherlands 100.00 0.00 0.0 0.0 EUR
Low Moor Securities Ltd. Cheadle, England 100.00 0.00 20.3 0.0 GBP
MicroBio Canada Limited Littlehampton, England 100.00 0.00 29.3 0.0 GBP
OOO BASF Moscow, Russian Federation 100.00 0.01 2,136.5 680.0 RUB
OOO BASF Stroitelnye Sistemy Moscow, Russian Federation 100.00 0.00 818.1 520.1 RUB
58 BASF SE Financial Statements 2014
Partici
pating Thereof Net
interest BASF SE Equity income Currency
Company Headquarters (%) (%) (million) (million) (ISO code)
OOO BASF Wostok Pavlovsky Posad,
Russian Federation 100.00 0.00 921.1 299.6 RUB
PCI Bauprodukte AG Zurich, Switzerland 100.00 0.00 1.3 0.5 CHF
Pronova BioPharma Norge AS Oslo, Norway 100.00 0.00 1,828.2 80.0 NOK
Société Foncière et Industrielle S.A.S. Clermont de l'Oise, France 92.90 0.00 8.4 0.1 EUR
Sorex Holding Ltd. Widnes, England 100.00 0.00 29.1 (4.7) GBP
WINGAS UK Limited Richmond, England 50.02 0.00 5.3 1.0 GBP
Wintershall Nederland B.V. Rijswijk, Netherlands 100.00 0.00 861.9 (0.2) EUR
Wintershall Noordzee B.V. Rijswijk, Netherlands 100.00 0.00 182.0 23.8 EUR
Wintershall Norge AS Stavanger, Norway 100.00 0.00 9,944.6 1,549.8 NOK
Wintershall Oil AG Zug, Switzerland 100.00 0.00 441.8 63.5 USD
Wintershall Petroleum (E&P) B.V. Rijswijk, Netherlands 100.00 0.00 236.8 48.5 EUR
ZAO Gazprom YRGM Trading Krasnoselskup,
Russian Federation 25.00* 0.00 56,308.4 18,612.8 RUB
North America
BASF Agricultural Specialties Ltd. Saskatoon, Saskatchewan,
Canada 100.00 0.00 60.1 5.1 CAD
BASF Americas Corporation Florham Park, New Jersey,
United States 100.00 0.00 4,992.4 176.0 USD
BASF Belgian Holdings LLC Florham Park, New Jersey,
United States 100.00 0.00 0.1 0.1 USD
BASF California Inc. Florham Park, New Jersey,
United States 100.00 0.00 369.6 40.5 USD
BASF Canada Inc. Mississauga, Ontario, Canada 100.00 100.00 374.1 33.8 CAD
BASF Catalyst Canada ULC Halifax, Nova Scotia, Canada 100.00 0.00 544.7 0.4 CAD
BASF Catalysts Holding China LLC Florham Park, New Jersey,
United States 96.25 0.00 (7.3) (0.3) USD
BASF Catalysts Holding LLC Florham Park, New Jersey,
United States 100.00 0.00 1,189.5 1,707.4 USD
BASF Catalysts LLC Florham Park, New Jersey,
United States 100.00 0.00 61.7 963.1 USD
BASF Corporation Florham Park, New Jersey,
United States 100.00 0.00 6,623.1 2,355.4 USD
BASF de Costa Rica S.A. San Jose, Costa Rica 100.00 0.00 20.5 2.8 USD
BASF de Mexico S.A. de C.V. México D.F., Mexico 100.00 99.99 169.3 54.1 USD
BASF Enzymes LLC Florham Park, New Jersey,
United States 100.00 0.00 0.0 0.0 USD
BASF Interservicios S.A. de C.V. México D.F., Mexico 100.00 0.01 3.0 2.4 USD
BASF Intertrade Corporation Houston, Texas, United States 100.00 0.00 13.7 6.7 USD
BASF Investments Canada Inc. New Westminster,
British Columbia, Canada 100.00 0.00 426.8 1.9 USD
BASF Mexicana S.A. de C.V. México D.F., Mexico 100.00 0.00 430.0 50.8 USD
BASF Panama S.A. Panama City, Panama 100.00 100.00 5.3 1.4 PAB
BASF Pipeline Holdings LLC Houston, Texas, United States 100.00 0.00 11.5 0.8 USD
BASF Plant Science LP Raleigh, North Carolina, United
States 100.00 0.00 100.5 5.4 USD
BASF Properties Inc. Mississauga, Ontario, Canada 100.00 0.00 10.0 0.1 USD
BASF Qtech (Canada) Inc. Mississauga, Ontario, Canada 70.00 0.00 0.0 0.0 CAD
BASF Qtech Inc. Mississauga, Ontario, Canada 70.00 0.00 43.5 (9.5) CAD
BASF TOTAL Petrochemicals LLC Port Arthur, Texas, United States 60.00 0.00 721.1 732.8 USD
BASF USA Holding LLC Florham Park, New Jersey,
United States 100.00 0.00 2,339.0 0.0 USD
BASFIN Corporation Florham Park, New Jersey,
United States 100.00 0.00 4,286.9 253.0 USD
Becker Underwood UK Inc. Ames, Iowa, United States 100.00 0.00 159.4 0.0 USD
BU Nitral Holding LLC Ames, Iowa, United States 100.00 0.00 0.2 0.0 USD
Chemical Insurance Company Ltd. Hamilton, Bermuda 100.00 0.00 170.9 (7.9) CHF
Ciba Specialty Chemicals Eurofinance Ltd. Hamilton, Bermuda 100.00 0.00 28.4 1.1 EUR
Cognis USA LLC Cincinnati, Ohio, United States 100.00 0.00 687.2 (48.0) USD
* Fully consolidated according to IFRS 10
BASF SE Financial Statements 2014 59
Partici
pating Thereof Net
interest BASF SE Equity income Currency
Company Headquarters (%) (%) (million) (million) (ISO code)
Engelhard Asia-Pacific LLC Florham Park, New Jersey,
United States 100.00 0.00 95.8 0.0 USD
Lumerica Insurance Company Burlington, Vermont, United
States 100.00 0.00 112.8 4.1 USD
Ovonic Battery Company Inc. Iselin, New Jersey, United States 100.00 0.00 46.9 (12.5) USD
ProCat Testing Holdings Inc. Florham Park, New Jersey,
United States 100.00 0.00 11.7 0.0 USD
ProCat Testing LLC Wixom, Michigan, United States 100.00 0.00 22.6 1.0 USD
Tradewinds Chemicals Corporation Florham Park, New Jersey,
United States 100.00 0.00 954.5 287.8 USD
Tradewinds Holding LLC Florham Park, New Jersey,
United States 100.00 0.00 464.0 0.0 USD
Watson Bowman Acme Corp. Amherst, New York,
United States 100.00 0.00 27.3 2.4 USD
Asia Pacific
BASF Advanced Chemicals Co., Ltd. Shanghai, China 100.00 0.00 2,899.4 326.2 CNY
BASF Asia Pacific (India) Private Ltd. Mumbai, India 100.00 0.00 462.2 (1.0) INR
BASF Asia-Pacific Service Centre Sdn. Bhd. Kuala Lumpur, Malaysia 100.00 0.00 46.9 18.2 MYR
BASF Australia Ltd. Southbank, Victoria, Australia 100.00 0.00 37.1 3.4 AUD
BASF Battery Materials (Suzhou) Co. Ltd. Suzhou, China 100.00 0.00 30.9 (54.8) CNY
BASF Care Chemicals (Shanghai) Co. Ltd. Shanghai, China 100.00 0.00 1,634.8 79.3 CNY
BASF Catalysts (Guilin) Co. Ltd. Guilin, China 96.25 0.00 228.7 21.6 CNY
BASF Catalysts (Shanghai) Co. Ltd. Shanghai, China 96.25 0.00 1,232.7 243.8 CNY
BASF Catalysts India Private Ltd. Maraimalainagar, India 95.00 0.00 3,216.2 401.3 INR
BASF Central Asia LLP Almaty, Kazakhstan 100.00 0.00 1,856.9 924.6 KZT
BASF Chemcat (Thailand) Ltd. Rayong, Thailand 80.00 0.00 824.2 373.4 THB
BASF Chemicals Company Ltd. Shanghai, China 100.00 0.00 1,111.6 4.7 CNY
BASF (China) Company Ltd. Shanghai, China 100.00 100.00 3,132.3 378.3 CNY
BASF Company Ltd. Seoul, South Korea 100.00 0.00 817,651.0 64,986.0 KRW
BASF Construction Chemicals (China) Ltd. Shanghai, China 100.00 0.00 (560.5) 61.7 CNY
BASF Construction Chemicals (Sichuan) Co. Ltd. Qinglong, China 100.00 0.00 (61.1) (2.9) CNY
BASF Crop Protection (JiangSu) Co. Ltd. Rudong, China 100.00 0.00 150.1 (19.3) CNY
BASF East Asia Regional Headquarters Limited Hong Kong, China 100.00 0.00 1,035.9 289.9 HKD
BASF Electronic Materials (Shanghai) Co. Ltd. Shanghai, China 100.00 0.00 (41.9) 44.8 CNY
BASF Gao-Qiao Chemical Company (Shanghai) Co. Ltd. Shanghai, China 75.00 0.00 679.2 79.6 CNY
BASF HOCK Mining Chemical (China) Co. Ltd. Ji’ning, Shangdong, China 75.00 0.00 (18.8) (367.1) CNY
BASF Hong Kong Ltd. Hong Kong, China 100.00 0.00 267.0 129.0 HKD
BASF Idemitsu Co. Ltd. Tokyo, Japan 67.00 67.00 1,706.0 239.0 JPY
BASF India Ltd. Mumbai, India 73.33 48.37 11,806.0 (754.7) INR
BASF Intertrade (Shanghai) Co. Ltd. Shanghai, China 100.00 0.00 125.9 6.6 CNY
BASF Japan Ltd. Tokyo, Japan 100.00 0.00 41,173.0 4,251.0 JPY
BASF (Malaysia) Sdn. Bhd. Shah Alam, Malaysia 100.00 0.00 290.9 30.3 MYR
BASF Markor Chemical Manufacturing (Xingjiang) Korla, China
Company Limited 51.00 0.00 0.0 0.0 CNY
BASF Metals (Shanghai) Co. Ltd. Shanghai, China 100.00 0.00 136.7 61.4 CNY
BASF Metals Japan Ltd. Tokyo, Japan 100.00 100.00 3,552.0 170.0 JPY
BASF New Zealand Ltd. Auckland, New Zealand 100.00 100.00 7.0 1.9 NZD
BASF Pakistan (Private) Ltd. Karachi, Pakistan 100.00 100.00 749.6 402.8 PKR
BASF Paper Chemicals (Huizhou) Co., Ltd. Huizhou City, Guangdong, China 100.00 0.00 13.1 (37.1) CNY
BASF Paper Chemicals (Jiangsu) Co. Ltd. Jiangsu, China 100.00 0.00 286.5 16.6 CNY
BASF Performance Products Limited Shanghai, China 100.00 0.00 1,085.3 144.9 CNY
BASF Petronas Chemicals Sdn. Bhd. Shah Alam, Malaysia 60.00 0.00 453.3 94.4 USD
BASF Polyurethane Specialties (China) Co. Ltd. Shanghai, China 100.00 7.00 1,091.0 217.0 CNY
BASF Polyurethanes (China) Co. Ltd. Guangzhou, China 100.00 0.00 349.4 43.7 CNY
BASF Polyurethanes (Chongqing) Co. Ltd. Chongqing, China 100.00 100.00 2,545.5 26.9 CNY
BASF Qingdao Pigments Co. Ltd. Qingdao, China 91.35 0.00 152.0 (33.9) CNY
BASF Services (Malaysia) Sdn. Bhd. Kuala Lumpur, Malaysia 100.00 100.00 176.0 (2.1) MYR
60 BASF SE Financial Statements 2014
Partici
pating Thereof Net
interest BASF SE Equity income Currency
Company Headquarters (%) (%) (million) (million) (ISO code)
BASF Shanghai Coatings Company Ltd. Shanghai, China 60.00 0.00 664.5 192.1 CNY
BASF South East Asia Pte. Ltd. Singapore 100.00 0.00 601.8 61.1 USD
BASF Specialty Chemicals (Nanjing) Co. Ltd. Nanjing, China 100.00 0.00 280.5 (49.2) CNY
BASF Taiwan Ltd. Taipei, Taiwan 100.00 0.00 5,473.7 1,746.3 TWD
BASF (Thai) Ltd. Bangkok, Thailand 100.00 99.99 (1,332.8) 108.9 THB
BASF Vietnam Co. Ltd. Binh Duong, Vietnam 100.00 0.00 46,855.0 38,217.0 VND
BASF Vitamins Company Ltd. Shenyang, China 100.00 60.00 245.7 16.4 CNY
Ciba (Australia) Pty. Ltd. Thomastown, Victoria, Australia 100.00 0.00 0.1 0.0 AUD
Engelhard China Ltd. Shanghai, China 100.00 100.00 (150.5) (7.0) CNY
P.T. BASF Care Chemicals Indonesia Jakarta, Indonesia 84.70 0.00 672,355.0 29,533.0 IDR
P.T. BASF Indonesia Jakarta, Indonesia 99.99 99.99 929,446.0 228,143.0 IDR
Shanghai BASF Polyurethane Company Shanghai, China 70.00 0.00 1,828.0 62.8 CNY
Partici
pating Thereof Net
interest BASF SE Equity income Currency
Company Headquarters (%) (%) (million) (million) (ISO code)
Rest of Europe
BASF DOW HPPO Holding B.V. Hoek, Netherlands 50.00 0.00 164.7 19.0 EUR
BASF DOW HPPO Production B.V. B. A. Antwerp, Belgium 50.00 0.00 183.7 18.3 EUR
Ellba C.V. Rotterdam, Netherlands 50.00 0.00 141.2 55.2 EUR
HPPO Holding and Finance C.V. Hoek, Netherlands 50.00 0.00 149.9 18.8 EUR
Zandvliet Power N.V. Antwerp, Belgium 50.00 0.00 27.9 3.6 EUR
ZAO Achimgaz Novy Urengoy,
Russian Federation 50.00 0.00 36,236.9 14,243.5 RUB
Asia Pacific
Toray BASF PBT Resin Sdn. Bhd. Kuala Lumpur, Malaysia 50.00 50.00 100.8 8.8 MYR
Partici
pating Thereof Net
interest BASF SE Equity income Currency
Company Headquarters (%) (%) (million) (million) (ISO code)
Germany
Wintershall Erdgas Handelshaus GmbH & Co. KG Berlin 50.00 0.00 0.3 * EUR
Rest of Europe
BASF Sonatrach PropanChem S.A. Tarragona, Spain 51.00 0.00 84.7 45.4 EUR
WIEE Romania S.R.L Bucharest, Romania 50.00 0.00 13.3 11.0 RON
WINGAS Storage Enterprise Ltd. London, England 25.01 0.00 0.6 0.0 GBP
WINGAS Storage UK Ltd. London, England 25.01 0.00 42.2 (12.0) GBP
Wintershall Erdgas Handelshaus Zug AG Zug, Switzerland 50.00 0.00 32.7 6.0 USD
North America
Industrias Polioles S.A. de C.V. México D.F., Mexico 49.90 0.00 7.5 (1.9) USD
Polioles, S.A. de C.V. Lerma, Edo de Mexico, Mexico 50.00 0.00 81.9 30.0 USD
Asia Pacific
BASF Heesung Trading Corporation Seoul, South Korea 60.00 0.00 3.6 0.3 USD
BASF Inoac Polyurethanes, Ltd. Shinshiro-shi, Japan 50.00 0.00 3,401.0 756.0 JPY
BASF MPCC Company Limited Guangdong Province, China 50.00 0.00 0.00 0.00 CNY
BASF PJPC Neopentylglycol Company Ltd. Jilin, China 60.00 50.00 165.7 11.8 CNY
BASF-YPC Company Ltd. Nanjing, China 50.00 10.00 11,350.5 (137.3) CNY
Heesung Catalysts Corporation Seoul, South Korea 50.00 0.00 411,094.0 66,860.0 KRW
Heesung PMTech Corporation Seoul, South Korea 40.05 0.00 63,123.0 10,335.0 KRW
N.E. Chemcat Corporation Tokyo, Japan 50.00 0.00 40,356.0 5,677.0 JPY
Shanghai Gaoqiao-BASF Dispersions Co. Ltd. Shanghai, China 50.00 40.00 306.0 28.9 CNY
Thai Ethoxylate Co., Ltd. Bangkok, Thailand 50.00 0.00 1,380.9 246.6 THB
Partici
pating Thereof Net
interest BASF SE Equity income Currency
Company Headquarters (%) (%) (million) (million) (ISO code)
Germany
BASF New Business GmbH Ludwigshafen (Rhine) 100.00 100.00 0.0 * EUR
BASF Venture Capital GmbH Ludwigshafen (Rhine) 100.00 0.00 0.0 * EUR
GASCADE Gastransport GmbH Kassel 50.02 0.00 793.0 107.2 EUR
Lucura Versicherungs AG Ludwigshafen (Rhine) 100.00 0.00 194.8 4.2 EUR
NEL Gastransport GmbH Kassel 50.02 0.00 232.9 26.1 EUR
Solvin GmbH & Co. KG ** Hanover 25.00 25.00 507.0 (251.0) EUR
Wintershall AG Kassel 51.00 0.00 254.6 5.8 EUR
Wintershall Wolga Petroleum GmbH Kassel 100.00 0.00 0.0 * EUR
Rest of Europe
BASF Huntsman Shanghai Isocyanate Investment B. V. Arnhem, Netherlands 50.00 0.00 0.0 8.0 EUR
BASF Interox H2O2 Production Elsene, Belgium 50.00 0.00 29.4 29.4 EUR
CIMO Compagnie industrielle de Monthey S.A. Monthey, Switzerland 50.00 0.00 206.0 14.5 CHF
Nord Stream AG Zug, Switzerland 15.50*** 0.00 1,957.0 0.1 EUR
OAO Severneftegazprom Krasnoselkup, Russian Federation 25.00**** 0.00 54,388.3 3,540.2 RUB
Asia Pacific
Foosung Technologies (Nantong) Co. Ltd. Nantong, China 49.00 0.00 127,207.0 (4,591.0) CNY
Markor Meiou Chemical (Xingjiang) Co. Ltd. Korla, China 49.00 0.00 0.0 0.0 CNY
Shanghai Lianheng Isocyanate Company Ltd. Shanghai, China 35.00 0.00 0.0 76.3 CNY
Participating Thereof
interest BASF SE
Company Headquarters (%) (%)
Germany
astora Beteiligungs-GmbH Kassel 50.02 0.00
Ausbildungsplatzinitiative Pfalz GmbH Ludwigshafen (Rhine) 97.00 97.00
baseclick GmbH Tutzing 67.30 0.00
BASF Biorenewable Beteiligungs GmbH & Co. KG Ludwigshafen (Rhine) 100.00 0.00
BASF Chemikalien GmbH Ludwigshafen (Rhine) 100.00 100.00
BASF Coatings Services GmbH Dortmund 100.00 0.00
BASF Color Solutions Germany GmbH Cologne 100.00 0.00
BASF Fuel Cell GmbH Ludwigshafen (Rhine) 100.00 0.00
BASF Fuel Cell Pensionsverwaltung GmbH Ludwigshafen (Rhine) 100.00 0.00
BASF Immobilien-Gesellschaft mbH Ludwigshafen (Rhine) 100.00 100.00
BASF Innovationsfonds GmbH Ludwigshafen (Rhine) 100.00 100.00
BASF Jobmarkt GmbH Ludwigshafen (Rhine) 100.00 100.00
BASF Lizenz GmbH Ludwigshafen (Rhine) 100.00 0.00
BASF Mobilienleasing GmbH Ludwigshafen (Rhine) 100.00 0.00
BASF VC Beteiligungs und Managementgesellschaft mbH Ludwigshafen (Rhine) 100.00 0.00
BASF watertechnologies Beteiligungs GmbH Schwarzheide 100.00 100.00
BFC Research GmbH Ludwigshafen (Rhine) 100.00 0.00
Cognis Trust Management GmbH Düsseldorf 100.00 0.00
Deutsche Nanoschicht GmbH Rheinbach 100.00 0.00
Elfte BASF Projektentwicklungsgesellschaft mbH Ludwigshafen (Rhine) 100.00 100.00
FSB Flugplatz Beteiligungsgesellschaft mbH Ludwigshafen (Rhine) 100.00 0.00
FSL Flugplatz Speyer/Ludwigshafen GmbH Speyer 54.24 8.62
Fünfzehnte BASF Chemiebeteiligungsgesellschaft mbH Ludwigshafen (Rhine) 100.00 0.00
Fünfzehnte BASF Projektentwicklungsgesellschaft mbH Ludwigshafen (Rhine) 100.00 0.00
Gesellschaft zur Förderung der Lackkunst mbH Münster 100.00 0.00
Gewerkschaft des konsolidierten Steinkohlebergwerks Breitenbach GmbH Ludwigshafen (Rhine) 100.00 100.00
Gewerkschaft Röchling GmbH Kassel 100.00 0.00
Guano-Werke Pensionsverwaltung GmbH Ludwigshafen (Rhine) 100.00 0.00
Guano-Werke Verwaltungs GmbH Ludwigshafen (Rhine) 100.00 0.00
Haidkopf GmbH Kassel 100.00 0.00
LUCARA Immobilienverwaltungs GmbH Ludwigshafen (Rhine) 100.00 100.00
LUWOGE consult GmbH Ludwigshafen (Rhine) 100.00 0.00
ME Projektabwicklung GmbH Ludwigshafen (Rhine) 100.00 0.00
Metanomics Health GmbH Berlin 100.00 0.00
Nordkaspische Explorations- und Produktions GmbH Kassel 100.00 0.00
OPAL Verwaltungs-GmbH Kassel 50.02 0.00
Projektentwicklungs-GmbH Friesenheimer Insel Ludwigshafen (Rhine) 100.00 100.00
SGS-Schwarzheider Gastronomie und Service GmbH Schwarzheide 100.00 0.00
SunGene GmbH Gatersleben 100.00 0.00
Ultraform Verwaltungsgesellschaft mbH Ludwigshafen (Rhine) 100.00 100.00
W & G Verwaltungs-GmbH Kassel 50.02 0.00
WIGA Verwaltungs-GmbH Kassel 50.02 0.00
WINGAS GbR Kassel 100.00 0.00
WINGAS Sales GmbH Kassel 50.02 0.00
Wintershall Lenkoran GmbH Kassel 100.00 0.00
Wintershall Libyen Oil & Gas GmbH Kassel 100.00 0.00
Wintershall Russland GmbH Kassel 100.00 0.00
Zweite BASF Immobilien-Gesellschaft mbH Ludwigshafen (Rhine) 100.00 95.00
Rest of Europe
Allied Colloids Overseas Ltd. Cheadle, England 100.00 0.00
AWIAG Ltd. Birkirkara, Malta 100.00 0.00
BASF Business Services Holding Ltd. Cheadle, England 100.00 0.00
BASF SE Financial Statements 2014 63
Participating Thereof
interest BASF SE
Company Headquarters (%) (%)
BASF Business Services Ltd. Cheadle, England 100.00 0.00
BASF Business Services N.V. Waterloo, Belgium 100.00 0.00
BASF Business Services S.A. Tarragona, Spain 100.00 0.00
BASF Business Services Spa Cesano Maderno, Italy 100.00 0.00
BASF Coatings Services A.B. Hisings Kärra, Sweden 100.00 0.00
BASF Coatings Services AG Zurich, Switzerland 100.00 0.00
BASF Coatings Services B.V. Maarssen, Netherlands 100.00 0.00
BASF Coatings Services GmbH Eugendorf, Austria 100.00 0.00
BASF Coatings Services Italy Srl Cesano Maderno, Italy 100.00 0.00
BASF Coatings Services S.A. Prior Velho, Portugal 100.00 0.00
BASF Coatings Services S.A. Guadalajara, Spain 100.00 0.00
BASF Coatings Services S.A. Bornem, Belgium 100.00 0.00
BASF Coatings Services S.A.S. Compans, France 100.00 0.00
BASF Coatings Services S.R.L. Bucharest, Romania 100.00 99.99
BASF Coatings Services s.r.o. Bratislava, Slovakia 100.00 100.00
BASF Coatings Services Sp.z.o.o. Kobylnica, Poland 100.00 0.00
BASF Coatings Storitve d.o.o. Ljubljana, Slovenia 100.00 0.00
BASF Color Solutions France S.A.S. Clermont de l'Oise, France 100.00 0.00
BASF Construction Chemicals BH d.o.o. Sarajevo, Bosnia Herzegovina 100.00 0.00
BASF Cork Limited Cork, Ireland 100.00 0.00
BASF Croatia d.o.o. Zagreb, Croatia 100.00 100.00
BASF EOOD Sofia, Bulgaria 100.00 100.00
BASF IBC Admixture Systems Limited Cork, Ireland 100.00 0.00
BASF Minerals Oy Helsinki, Finland 100.00 0.00
BASF Pensions Trustee Limited Cheadle, England 100.00 0.00
BASF Poliuretany Polska Sp.z o.o. Srem, Poland 100.00 0.00
BASF Polyuretány Slovensko s.r.o. Malacky, Slovakia 100.00 100.00
BASF Polyurethanes Nordic AB Angered, Sweden 100.00 0.00
BASF S.R.L. Bucharest, Romania 100.00 100.00
BASF Slovenija d.o.o. Ljubljana, Slovenia 100.00 100.00
BASF Srbija d.o.o. Belgrade, Serbia 100.00 100.00
BASF UAB Wilna, Lithuania 100.00 100.00
Boots Galenika d.o.o. Belgrade, Serbia 51.00 51.00
Chem2U AG Basel, Switzerland 100.00 0.00
Ciba Scandinavia AB Västra Frölunda, Sweden 100.00 0.00
Ciba Services AG Basel, Switzerland 100.00 0.00
Ciba Specialty Chemicals Water Treatments B.V. Maastricht, Netherlands 100.00 0.00
Ciba Specialty Chemicals Water Treatments N.V. Antwerp, Belgium 100.00 0.00
Ciba UK Pension Trust Ltd. Cheadle, England 100.00 0.00
Cognis Performance Chemicals UK Ltd. Southampton, England 100.00 0.00
Cognis Specialty Organics Far East Ltd. Southampton, England 100.00 0.00
Engelhard Arganda S.L. Tarragona, Spain 100.00 100.00
FLLC BASF, Belarus Minsk, Belarus 100.00 0.00
Hythe Chemicals Ltd. Southampton, England 100.00 0.00
Inca Bronze Powders Ltd. Cheadle, England 100.00 0.00
Interlates Ltd. Cheadle, England 100.00 0.00
Kiinteistö Oy Raision Koepainolaitos Raisio, Finland 100.00 0.00
Magenta Master Fibers Srl Mailand, Italy 100.00 0.00
MetalFX Technology Ltd. Cheadle, England 100.00 0.00
Novolyte Technologies S.P.R.L. Antwerp, Belgium 100.00 0.00
Sorex Ltd. Widnes, England 100.00 0.00
The MicroBio Group Limited Littlehampton, England 100.00 0.00
The Sheffield Smelting Co. Ltd. Cheadle, England 100.00 0.00
Wingas Benelux B.V.B.A. Brussels, Belgium 50.52 0.00
Wintershall (UK) Ltd. Aberdeen, Scotland 100.00 0.00
Wintershall Exploration and Production International C.V. Rijswijk, Netherlands 100.00 0.00
64 BASF SE Financial Statements 2014
Participating Thereof
interest BASF SE
Company Headquarters (%) (%)
Wintershall Gas spol. s.r.o. Prague, Czech Republic 100.00 0.00
Wintershall Global Support B.V. Rijswijk, Netherlands 100.00 0.00
Wintershall Nederland Transport and Trading B.V. Rijswijk, Netherlands 100.00 0.00
Wintershall Services B.V. Rijswijk, Netherlands 100.00 0.00
North America
Automotive Refinish Technologies Inc. Mississauga, Ontario, Canada 100.00 0.00
Automotive Refinish Technologies LLC Southfield, Michigan, United States 100.00 0.00
BASF Construction Canada Holdings Inc. Mississauga, Ontario, Canada 100.00 0.00
BASF de El Salvador, S.A. de C.V. San Salvador, El Salvador 100.00 99.95
BASF de Guatemala S.A. Ciudad de Guatemala, Guatemala 100.00 99.00
BASF Dominicana S.A. Santo Domingo, Dominican Republic 100.00 100.00
BASF Venture Capital America Inc. Fremont, California, United States 100.00 0.00
Becker Underwood Inoculants LLC Ames, Iowa, United States 100.00 0.00
Ciba S.A. (ACC) Guatemala City, Guatemala 100.00 0.00
DNA Landmarks Inc. Saint-Jean-sur-Richelieu, Canada 100.00 0.00
OSNovation Systems Inc. Santa Clara, United States 70.00 0.00
Thousand Springs Trout Farms Inc. Florham Park, New Jersey, United States 100.00 0.00
Asia Pacific
Allied Colloids (Asia) Ltd. Hong Kong, China 100.00 0.00
Allied Colloids Chemicals (Far East) Pte. Ltd. Singapore 100.00 0.00
BASF Agricultural Specialties PTY LTD Somersby, New South Wales, Australia 100.00 0.00
BASF Bangladesh Ltd. Dhaka, Bangladesh 76.41 76.41
BASF Chemicals and Polymers Pakistan (Private) Ltd. Karachi, Pakistan 100.00 100.00
BASF Chemicals India Pvt. Ltd. Mumbai, India 100.00 0.00
BASF China Limited Hong Kong, China 100.00 0.00
BASF Coatings + Inks Philippines Inc. Metro Manila, Philippines 100.00 0.00
BASF Coatings International Trade (Shanghai) Co. Ltd. Shanghai, China 100.00 0.00
BASF Construction Chemicals (Beijing) Co. Ltd. Beijing, China 100.00 0.00
BASF Construction Systems (China) Co. Ltd. Huzhou, China 100.00 0.00
BASF Grameen Ltd. Dhaka, Bangladesh 99.50 99.50
BASF Kaspian Yapi kimyasallari Sanayimehud mesuliyyeti cemiyyeti Sumqayit, Azerbaijn 80.00 0.00
BASF Lanka (Private) Limited Colombo, Sri Lanka 100.00 99.99
BASF LLC Ulaanbaatar, Mongolia 100.00 0.00
BASF Philippines Inc. Taguig, Philippines 100.00 100.00
BASF Polyurethanes (Tianjin) Co. Ltd. Tianjin, China 100.00 0.00
BASF See Sen Sdn. Bhd. Kuala Lumpur, Malaysia 70.00 70.00
BASF Trading (Shanghai) Co. Ltd. Shanghai, China 100.00 0.00
Becker Underwood Australia PTY LTD Somersby, New South Wales, Australia 100.00 0.00
BNC Color Techno Co. Ltd. Kanagawa, Japan 100.00 0.00
Cognis Australia Pty. Ltd. Tullamarine, Victoria, Australia 100.00 0.00
Cognis Chemicals (HK) Ltd. Hong Kong, China 100.00 0.00
Cognis Chemicals Trade (Shanghai) Co. Ltd. Shanghai, China 100.00 0.00
Cognis (Malaysia) Sdn. Bhd. Subang Jaya, Malaysia 100.00 0.00
Doobon Fine Chemicals Co. Ltd. Chungwon, South Korea 63.00 0.00
Engelhard (Shanghai) Co. Ltd. Shanghai, China 100.00 0.00
Magenta Master Fibers Shanghai Ltd. Shanghai, China 100.00 0.00
Novolyte Technologies Ltd. Hong Kong, China 100.00 0.00
P.T. Kapo Kimia Kencana Jakarta, Indonesia 99.99 0.00
Shanghai MBT & SCG High-Tech Construction Chemical Co. Ltd. Shanghai, China 60.00 0.00
Taiko Shoji Ltd. Tokorozawa-shi, Japan 60.00 0.00
Participating Thereof
interest BASF SE
Company Headquarters (%) (%)
BASF Poliestireno Expansivel do Brasil Ltda Guaratingueta, Brazil 100.00 0.00
BASF Bolivia S.R.L. Santa Cruz de la Sierra, Bolivia 99.79 99.99
BASF Coatings (Pty.) Ltd. Johannesburg, South Africa 100.00 0.00
BASF Coatings Uganda Limited Kampala, Uganda 100.00 0.00
BASF Commerce Venezuela S.A. Caracas, Venezuela 100.00 1.00
BASF Construction Chemicals ORIA FZE Dubai, United Arab Emirates 100.00 0.00
BASF East Africa Limited Nairobi, Kenya 100.00 99.75
BASF Ecuatoriana S. A. Quito, Ecuador 100.00 99.96
BASF Iran (PJS) Company Tehran, Iran 100.00 0.00
BASF Ltd. Cairo, Egypt 100.00 99.18
BASF Maroc S.A. Casablanca, Marocco 100.00 100.00
BASF Paraguaya S.A. Asunción, Paraguay 100.00 99.97
BASF Polyurethanes Pars (PJS) Company Tehran, Iran 100.00 0.00
BASF Polyurethanes South Africa (Pty.) Ltd. Edenvale, South Africa 100.00 0.00
BASF S.p.A. Algier, Algeria 100.00 100.00
BASF Venezolana S. A. Caracas, Venezuela 100.00 73.67
BASF West Africa Limited Lagos, Nigeria 100.00 0.00
BASF Zambia Limited Lusaka, Sambia 100.00 0.00
Ciba (Pty.) Ltd. Spartan, South Africa 100.00 0.00
Cognis South Africa (Pty.) Ltd. Gauteng, South Africa 100.00 0.00
Cyanamid Zimbabwe (Pvt.) Ltd. Workington, Zimbabwe 100.00 0.00
Engelhard (South Africa) (Pty.) Ltd. Port Elizabeth, South Africa 100.00 0.00
Jordanian Swiss Company for Manufacturing & Marketing Construction Amman, Jordan 80.00 0.00
Medag Industria de Soluções Quimicas Ltda Manaus, Brazil 100.00 0.00
Miledre S.A. Montevideo, Uruguay 99.00 0.00
Wintershall BM-C-10 Ltda. Rio de Janeiro, Brazil 100.00 0.00
Wintershall BM-C-19 Ltda. Rio de Janeiro, Brazil 100.00 0.00
Wintershall BM-ES-1 Ltda. Rio de Janeiro, Brazil 100.00 0.00
Wintershall BM-ES-7 Ltda. Rio de Janeiro, Brazil 100.00 0.00
Wintershall Chile Ltda. Santiago, Chile 100.00 0.00
Wintershall do Brasil Serviços Ltda. Rio de Janeiro, Brazil 100.00 0.00
2. Associated companies not accounted for using the equity method due to immateriality
Participating Thereof
interest BASF SE
Company Headquarters (%) (%)
Germany
ARG Verwaltungs GmbH Duisburg 20.00 20.00
Aurentum Innovationstechnologien GmbH Mainz 48.20 0.00
Cavis Microcaps GmbH Mainz 24.46 0.00
Erdgas Münster GmbH Münster 28.77 0.00
GAG Ludwigshafen am Rhein AG für Wohnungs-, Gewerbe- und Städtebau Ludwigshafen (Rhine) 30.00 0.00
Industriekraftwerk Greifswald GmbH Kassel 25.51 0.00
Infra Leuna Beteiligungs-GmbH Leuna 27.00 0.00
InnovationLab GmbH Heidelberg 35.00 35.00
KARANTO Corrosion Protection Technologies GmbH Düsseldorf 50.00 0.00
KTL Kombi-Terminal Ludwigshafen GmbH Ludwigshafen (Rhine) 40.00 40.00
Nowega GmbH Münster 28.77 0.00
Projektförderung Initiative für Beschäftigung GmbH Münster 25.00 0.00
Solvin Europe GmbH Hanover 25.20 25.20
Succinity GmbH Düsseldorf 50.00 50.00
WIEH Verwaltungs-GmbH Kassel 50.00 0.00
ZEMBET Entwicklungsgesellschaft mbH Ulm 50.00 0.00
66 BASF SE Financial Statements 2014
Participating Thereof
interest BASF SE
Company Headquarters (%) (%)
Rest of Europe
ARA Kaisten AG Kaisten, Switzerland 25.00 0.00
BASF Dow HPPO B.V. Hoek, Netherlands 50.00 0.00
BASF Dow HPPO Technology B.V. Hoek, Netherlands 50.00 0.00
bci Betriebs-AG Basel, Switzerland 42.54 0.00
Combi Terminal Catalonia Sociedad Limited Tarragona, Spain 28.00 0.00
Combinant N.V. Antwerp, Belgium 45.00 0.00
CSEBER Non-Profit Közhasnú Kft. Budapest, Hungary 22.72 0.00
Ellba B.V. Arnhem, Netherlands 50.00 0.00
Forest Pilot Center Oy Raisio, Finland 45.00 0.00
Gestio de Residus Especiales de Catalunya S.A. Tarragona, Spain 33.34 0.00
Industriefeuerwehr Regio Basel (IFRB) Muttenz, Switzerland 33.33 0.00
OOO Elastokam Nishnekamsk, Russian Federation 50.00 0.00
OOO Wolgodeminoil Wolgograd, Russian Federation 50.00 0.00
TAPP A. I. E. Terminal de Atraque de Prod. Petroquim Tarragona, Spain 50.00 0.00
WIEE Bulgaria EOOD Sofia, Bulgaria 50.00 0.00
WIEE Hungary Kft. Budapest, Hungary 50.00 0.00
WIROM GAS S.A. Bucharest, Romania 25.56 0.00
North America
Allylix Inc. San Diego, California, United States 25.10 0.00
Buckeye Products Pipeline LP Houston, Texas, United States 22.00 0.00
Fort Amanda Specialities LLC Lima, Ohio, United States 50.00 0.00
Gulf Coast Pipeline LP Houston, Texas, United States 22.00 0.00
NanoMas Inc. Binghampton, New York, United States 33.45 0.00
Sion Power Corporation Tucson, Arizona, United States 20.00 0.00
Splice Sleeve North America Inc. Livonia, Michigan, United States 32.50 0.00
Yara Freeport LLC Wilmington, Delaware, United States 32.00 0.00
Asia Pacific
Nihon Splice Sleeve Ltd. Tokyo, Japan 32.50 0.00
Nippon Alkyl Phenol Co. Ltd. Tokyo, Japan 50.00 0.00
Nisso BASF Agro Co. Ltd. Tokyo, Japan 45.00 45.00
Pigment Manufactures of Australia Ltd. Laverton, Victoria, Australia 50.00 0.00
Santoku BASF Pte. Ltd. Singapore 49.00 49.00
Yugen Kaisha Sankyo Shoji Osaka, Japan 42.00 0.00
Partici
pating Thereof Net
interest BASF SE Equity income Currency
Company Headquarters (%) (%) (million) (million) (ISO code)
Germany
InfraLeuna GmbH Leuna 6,62 0,00 337,00* 4,40* EUR
Rest of Europe
Solvias AG Basel, Switzerland 5,73 18,50** (0.20)** CHF
Asia Pacific
Eternal Specialty Chemical (Zhuhai) Co. Ltd. Zhuhai, China 10,00 354,00* 42,70* CNY
The German subsidiaries listed below, which have the legal form of either a corporation or a partnership, make use of the exemptions
offered by Section 264(3) or Section 264(b) of the German Commercial Code, respectively:
Company Headquarters
BASF Agro Trademarks GmbH Ludwigshafen (Rhine)
BASF Akquisitions GmbH, Ludwigshafen (Rhine)
BASF Battery Technology Investment GmbH & Co. KG Ludwigshafen (Rhine)
BASF Bautechnik GmbH Trostberg
BASF Beteiligungsgesellschaft mbH Ludwigshafen (Rhine)
BASF Business Services Holding GmbH Ludwigshafen (Rhine)
BASF Business Services GmbH Ludwigshafen (Rhine)
BASF Catalysts Germany GmbH Hanover
BASF Coatings GmbH Münster
BASF Construction Solutions GmbH Trostberg
BASF Grenzach GmbH Grenzach-Wyhlen
BASF Handels- und Export GmbH Ludwigshafen (Rhine)
BASF Immobilien Pigment GmbH Ludwigshafen (Rhine)
BASF Isocyanate China Investment GmbH Ludwigshafen (Rhine)
BASF Lampertheim GmbH Lampertheim
BASF Leuna GmbH Leuna
BASF Ludwigshafen Grundbesitz SE & Co. KG Ludwigshafen (Rhine)
BASF Niedersächsische Grundbesitz GmbH Ludwigshafen (Rhine)
BASF Oldenburger Grundbesitz GmbH Oldenburg
BASF Performance Polymers GmbH Rudolstadt
BASF Personal Care and Nutrition GmbH Monheim
BASF PharmaChemikalien GmbH & Co. KG Ludwigshafen (Rhine)
BASF Pigment GmbH Ludwigshafen (Rhine)
BASF Plant Science Company GmbH Ludwigshafen (Rhine)
BASF Plant Science GmbH Ludwigshafen (Rhine)
BASF Polyurethanes GmbH Lemförde
BASF Schwarzheide GmbH Schwarzheide
BASF Services Europe GmbH Berlin
BASF Specialty Chemicals Marketing GmbH Ludwigshafen (Rhine)
BASF Trostberger Grundbesitz GmbH Ludwigshafen (Rhine)
BASF US Verwaltung GmbH Ludwigshafen (Rhine)
BASF watertechnologies GmbH & Co. KG Ludwigshafen (Rhine)
BASF Wolman GmbH Sinzheim
BPG Immobilien GmbH Ludwigshafen (Rhine)
BPS-Finanzbeteiligungsgesellschaft mbH Ludwigshafen (Rhine)
BTC Europe GmbH Monheim
Cognis Holding GmbH Ludwigshafen (Rhine)
68 BASF SE Financial Statements 2014
Company Headquarters
Cognis International GmbH Monheim
Construction Research & Technology GmbH Trostberg
E & A Internationale Explorations- und Produktions-GmbH Kassel
Grünau Illertissen GmbH Illertissen
Guano-Werke GmbH & Co. KG Ludwigshafen (Rhine)
hte GmbH the high throughput experimentation company Heidelberg
Inge GmbH Greifenberg
LUWOGE GmbH Ludwigshafen (Rhine)
Metanomics GmbH Berlin
PCI Augsburg GmbH Augsburg
Wintershall Erdgas Beteiligungs-GmbH Kassel
Wintershall Middle East GmbH Kassel
Wintershall Russia Holding GmbH Kassel
Wintershall Vermögensverwaltungsgesellschaft mbH Kassel
Disclosures pursuant to Section 285(11a) of the German Commercial Code (position of BASF SE as shareholder with
unlimited liability)
Company Headquarters
BASF Ludwigshafen Grundbesitz SE & Co. KG Ludwigshafen (Rhine)
In accordance with the requirements of Section 17 of the Republic of Ireland Companies (Amendment) Act of 1986, BASF SE pro-
vides irrevocable guarantees for liabilities of the subsidiary shown below, pursuant to Section 5(c)(ii) of the aforementioned law. This
subsidiary is thereby exempted from disclosure obligations as per Section 7 of the Companies (Amendment) Act of 1986.
Company Headquarters
BASF Ireland Limited Cork, Ireland
To the best of our knowledge, and in accordance with the applicable reporting principles, the Financial Statements of BASF SE
give a true and fair view of the assets, liabilities, financial position and profit situation of BASF SE, and Management’s Report of
BASF SE includes a fair review of the development and performance of the business and the position of the company, together with
a description of the principal opportunities and risks associated with the expected development of BASF SE.
Margret Suckale
70 BASF SE Financial Statements 2014
Auditor’s report
We have audited the annual financial statements, comprising ness activities and the economic and legal environment of the
the balance sheet, the income statement and the notes to the Company and expectations as to possible misstatements are
financial statements, together with the bookkeeping system, and taken into account in the determination of audit procedures. The
the Management’s Report of BASF SE, Ludwigshafen am Rhein, effectiveness of the accounting-related internal control system
for the business year from January 1, 2014 to December 31, and the evidence supporting the disclosures in the books and
2014. The maintenance of the books and records and the prepa- records, the annual financial statements and the Management’s
ration of the annual financial statements and management Report are examined primarily on a test basis within the frame-
report in accordance with German commercial law are the work of the audit. The audit includes assessing th accounting
responsibility of the Company’s management. Our responsibil- principles used and significant estimates made by management,
ity is to express an opinion on the annual financial statements, as well as evaluating the overall presentation of the annual
together with the bookkeeping system, and Management’s financial statements and Management’s report. We believe that
Report based on our audit. our audit provides a reasonable basis for our opinion. Our
We conducted our audit of the annual financial statements audit has not led to any reservations.
in accordance with Section 317 HGB and German generally In our opinion, based on the findings of our audit, the
accepted standards for the audit of financial statements pro- annual financial statements comply with the legal requirements
mulgated by the Institut der Wirtschaftsprüfer (IDW). Those stan- and give a true and fair view of the net assets, financial position
dards require that we plan and perform the audit such that and results of operations of the Company in accordance with
misstatements materially affecting the presentation of the net German principles of proper accounting. The Management’s
assets, financial position and results of operations in the annual Report is consistent with the annual financial statements and as
financial statements in accordance with the German principles a whole provides a suitable view of the Company’s position and
of proper accounting and in the Management’s Report are suitably presents the opportunities and risks of future develop-
detected with reasonable assurance. Knowledge of the busi- ment.
KPMG AG
Wirtschaftsprüfungsgesellschaft
You can find this and other BASF publications online at General inquiries
www.basf.com Phone: +49 621 60-0, Fax: +49 621 60-42525
Corporate Media Relations
Jennifer Moore-Braun, Phone: +49 621 60-99123,
Fax: +49 621 60-92693
Investor Relations
Magdalena Moll, Phone: +49 621 60-48230, Fax: +49 621 60-22500
Internet
www.basf.com
BASF SE, 67056 Ludwigshafen, Germany