Value added statement

The value added statement enables us to show the social component of our sustainable development in a transparent manner. Unlike the statement of income, the value added statement is not from the shareholder’s perspective, but shows BASF’s contribution to private and public income.

Value added is calculated as the company’s business performance less goods and services purchased and less depreciation and amortization. In 2007, BASF’s value added amounted to €14,442 million and increased by 7.0% compared with 2006.

The resulting amount is distributed to BASF’s stakeholders including employees, shareholders and the state. The majority of value added was distributed to our employees in the form of wages, salaries and social benefits. In addition, a significant share of value added was distributed to the state in the form of taxes. This amounted to €2,855 million in 2007 (2006: €3,268 million). The decline in the share of taxes in the use of value added resulted from the reassessment of deferred tax assets and liabilities due to the reduction in the nominal tax rate to 29% as part of the German Tax Reform 2008.

In 2007, BASF spent a total of €75.3 million on donations, sponsoring and funding for our own projects. This amount is contained in “other expenses”.
Further information can be found on donations and sponsoring.

The remaining value added of €4,065 million was available to be paid out as a dividend or retained.