Acrylic monomers are part of the product range of the Functional Polymers division and are used among other things as starting materials in the production of polymer dispersions.

The concrete admixtures from the Admixture Systems business unit ensure optimal concrete characteristics, even under extreme conditions, for sky scrapers, complex bridge constructions and tunnels.

The Agricultural Products division develops, produces and markets products to protect crops from fungal attack, insect pests and weeds to increase quality and ensure yields.

Coating systems for vehicle bodies that protect the vehicle from corrosion (cathodic dip) and gravel and chippings (primer), provide color (basecoat) and offer protection from environmental factors (topcoat).

Coatings systems for the repair of vehicles under the trademarks Glasurit^® and R-M^®.

Audits are a strategic tool for managing safety and environmental protection efforts. During a site or plant audit, a profile is created using clearly defined environmental, safety or health criteria.

International standard for comparing the thermal energy of different fuels.

This term covers all processes and products that use living organisms, for example bacteria and yeasts, or their cellular constituents. Plant biotechnology and white biotechnology belong to the five growth clusters of BASF.

The Catalysts division comprises the environmental technologies, process technologies as well as materials services, which provides both the BASF Catalysts business and customers of BASF with precious metals and services.

The Coatings division comprises the automotive refinish coatings, industrial coatings and decorative paints business units.

A parameter to describe the effect of greenhouse gas emissions. A factor known as the global warming potential (GWP) shows the effect of the individual gases compared with CO₂ (reference value).

Compliance is an important element of corporate governance. It refers to the company’s behavior in accordance with laws, guidelines and voluntary codices.

The Construction Chemicals division comprises the Admixture Systems and Construction Systems businesses.

The Construction systems business unit offers, among other things, building products, sports and industrial flooring as well as façade systems.

Corporate governance refers to the entire system of managing and overseeing a company. This includes the organization of a company, its principles and guidelines as well as all internal and external regulatory and monitoring mechanisms.

The dividend yield is the return received by a shareholder in the form of a dividend in relation to the year-end share price. It is calculated by dividing the per-share dividend by the year-end share price and multiplying by 100.

The amount earned by BASF in euros per share based on the weighted number of shares.

Earnings before interest and taxes. This type of income shows the value of the company’s operations before interest expenses and taxes are deducted.

The EBIT after cost of capital is calculated by deducting the cost of capital from the operating income earned by BASF’s operating divisions. If the EBIT after cost of capital has a positive value BASF has earned a premium on the expected return of its providers of debt and equity. The EBIT after cost of capital is the key performance and management indicator.

We use this key performance and management indicator for our operating divisions and business units to ensure that we meet the interest rate payments to providers of debt, satisfy the returns expected by providers of equity and cover tax expenses.

Earnings before interest, taxes, depreciation and amortization.

This is the margin that we earn on sales from our operating activities before depreciation and amortization. It is calculated as income from operations before depreciation and amortization as a percentage of sales.

This analysis allows both economic and environmental aspects to be considered when developing and optimizing products and processes. The aim is to offer the best possible cost-effective products with good environmental performance.

The development of new materials and technologies to convert and store energy. Energy management also refers to the responsible use of fossil fuels, for example through the development of energy-saving materials such as insulation.

To investigate and explore an area in the search for mineral resources such as crude oil or natural gas. For successful exploration, it is important to discover oil and gas-bearing structures (deposits, fields) using suitable geophysical processes at sea or on land rather than by means of expensive drilling

Fermentation is a process in which renewable raw materials are reacted with the aid of microorganisms such as bacteria, fungi or cell cultures.

In the Fine Chemicals division, we develop, produce and market highvalue products for the cosmetics and pharmaceutical industries, as well as for human and animal nutrition. Our primary products are aroma chemicals and UV-filters, pharmaceutical active ingredients and excipients as well as vitamins and carotenoids.

Cash provided by operating activities less payments related to property, plant and equipment and intangible assets.

The Functional Polymers division is the global market leader in acrylic acid and superabsorbents and is a leading supplier of functional polymers for the adhesives, construction and paper industries.

An active ingredient that kills fungi or inhibits their growth (for example in plants).

BASF combines the important technology-driven issues of the future in five growth clusters: energy management, raw material change, nanotechnology, plant biotechnology and white biotechnology.

An active ingredient used to destroy weeds.

Technology to produce propylene oxide (PO) from hydrogen peroxide (HP). HPPO technology is more environmentally and economically viable than conventional PO methods of production, because no by-products are produced besides water. PO is an intermediate, for example, in the production of polyurethane.

International Accounting Standards (see also IFRS)

The International Financial Reporting Interpretations Committee is a committee that publishes proposed guidance on IFRS and IAS.

International Financial Reporting Standards (until 2001: International Accounting Standards, IAS) are developed and published by the International Accounting Standards Board (IASB) headquartered in London, United Kingdom. In accordance with the IAS Regulations, IFRS are mandatory for listed companies headquartered in the European Union since 2005.

Coating materials for industrial goods with the exception of vehicles.

The Inorganics division produces raw materials such as ammonia, sulfuric acid and nitric acid, as well as the electrolysis products chlorine and sodium hydroxide. The division also produces innovative specialties such as electronic chemicals, impregnating resins and powder injection molding technologies.

An active ingredient used to destroy harmful insects.

The Intermediates division develops, produces and markets a comprehensive range of intermediates worldwide. The most important of the division’s more than 600 products include amines, diols, polyalcohols as well as acids and specialties. They serve as starting materials for products such as coatings, plastics, pharmaceuticals, textile fibers, agricultural products as well as detergents and cleaners.

A key performance indicator is a quantifiable measurement that can be used to track the progress in achieving important goals within a company.

The Kyoto Protocol is a supplement to the United Nations Framework Convention on Climate Control. Its main goal is to reduce emissions of greenhouse gases.

LPG contains liquefied elements of natural gas (except for methane), e.g., propane, butane and propane-butane blends, are used as an alternative feedstock for cracker operations and for other chemical processes.

Metabolic Profiling is the parallel and sensitive analysis of a broad spectrum of small-molecule metabolites from a given biological sample. Metabolites comprise components such as amino acids, fatty acids, hormones, sugars and other substance classes.

Megawatt hour: a measuring unit for energy

The term nanotechnology applies to materials, structures and technologies with one thing in common: the creation or presence of at least one spatial dimension smaller than one hundred nanometer.

Liquid petroleum that is obtained as a by-product of oil refining. Heavy naphtha is the starting point for gasoline production. Light naphtha is the most important feedstock for steam crackers.

The Organization for Economic Cooperation and Development is an international body headquartered in Paris, France.

Our oil and gas operations are conducted by Wintershall Holding AG and its subsidiaries and include exploration and production of crude oil and natural gas, as well as natural gas trading, transportation and storage in Europe.

The distribution ratio shows what proportion of earnings is distributed in the form of a dividend. It is calculated by dividing the total dividend paid by net income and multiplying by 100.

The Performance Chemicals division comprises the majority of BASF’s specialty chemicals activities. It includes the business areas Coatings, Plastics & Specialties; Automotive & Oil Industry; Textiles; Leather; and Detergents & Formulators.

The Performance Polymers division develops, produces and markets engineering plastics for use in the automotive and electronics industries, for example, as well as polyamide and polyamide intermediates.

The Petrochemicals division operates world-scale facilities to supply the Verbund sites with petrochemical feedstocks such as ethylene and propylene, as well as with technical gases such as hydrogen and oxygen. In later processing stages, products in BASF’s plasticizers and solvents value-adding chains are produced, as are alkylene oxides and glycols.

An area of biotechnology in which methods of traditional cultivation are optimized using methods from molecular biology and biochemistry. Plants can be developed for more efficient agriculture, a healthier diet as well as for use as renewable resources.

Crop protection products that increase crop yield and improve quality beyond disease and insect control.

The Polyurethanes division is one of the world’s leading producers of polyurethanes. Our product range includes the entire spectrum of basic polyurethane products, tailor-made polyurethane systems and polyurethane specialties. Polyurethanes are used, for example, as rigid or flexible foams for household appliances, and as specialty plastics for the automobile and footwear industries.

Underground gas storage facilities in depleted natural gas deposits or oil fields. The natural gas is pressed into the existing porous rock layers. These are mainly used to balance out seasonal differences in gas demand.

New or improved products and applications, which have been on the market for less than five years.

Analysis and evaluation of processes to use natural gas, coal and renewable raw materials for chemical value-adding chains.

An E.U. regulatory framework for the registration, evaluation and authorization of chemicals.

The reserve-to-production ratio of oil and gas reserves indicates how many years proved reserves will last at current rates of production. It is assumed that production remains constant and there is no development of new reserves. The reserve-to-production ratio is calculated by dividing total proved reserves of crude oil and natural gas at year end by annual production.

A worldwide initiative by the chemical industry to continuously improve its performance in the fields of environmental protection, health and safety.

This describes the return we make on the average assets employed during the year. It is calculated as income from ordinary activities plus interest expenses as a percentage of average assets.

This describes the return we make on the average equity used during a fiscal year. It is calculated as income before minority interests as a percentage of average equity.

Seed Treatment Products are crop protection products applied with specific technologies directly on the seed and thus protect crops in the emerging stages against diseases and harmful insects.

One-time charges or one-time income that significantly affect the earnings of a segment or the BASF Group. Special items include, for example, charges arising from restructuring measures and severance payments.

A market where an agreed deal including delivery, acceptance and payment occurs immediately. In contrast to forward contracts where the delivery, acceptance and payment occurs at point in time after the conclusion of the deal.

The designation for persons or groups whose interests are interlinked with those of a company in a variety of ways. BASF’s stakeholders include shareholders, business partners, employees, neighbors and society, and the environment.

A plant in which steam is used to “crack” naphtha (petroleum) or natural gas. The resulting petrochemicals – above all, ethylene and propylene – are the starting materials used to manufacture most of BASF’s products.

This operating division produces and distributes styrene and styrenics worldwide. The production of the primary product styrene is primarily for captive use (backward integration). Styrenics are used in many fields, including the construction, packaging, automotive, electric and leisure industries.

The objective of sustainable development is to meet the economic, environmental and social needs of society without harming the development opportunities of future generations.

An agreement between two companies to exchange payment flows in the future. In an interest swap, a fixed (variable) interest rate is exchanged for a floating (fixed) rate for an agreed nominal amount.

Our four global technology platforms – Polymer Research, Specialty Chemicals Research, Chemicals Research & Engineering and Plant Biotechnology Research – form the heart of our Know-how Verbund.

Successive steps in a production process, from the raw materials through various intermediate steps to the finished product.

The Verbund is one of BASF’s greatest strengths: At our major sites, we link our production plants in a sophisticated system along our value-adding chains. We thus save energy and raw materials, reduce logistics costs and use infrastructure facilities jointly.

An area of biotechnology that uses microorganisms and/or enzymes to produce chemical products, utilized in many levels of the value-adding chain in the chemical industry. This involves, for example, the biotechnological production of enzymes and chirale intermediates.

WINGAS GmbH is a joint venture company with our Russian partner Gazprom. At the end of 2007, BASF held 50% plus one share of WINGAS through its 100% subsidiary Wintershall Holding AG. WINGAS is an European company active in natural gas trading and distribution. Its customers include regional and communal gas suppliers, industrial companies and power plant operators.

Large production plants in which products can be manufactured on a world scale. The more a plant produces, the lower the fixed costs per metric ton of product (economies of scale). BASF is therefore committed to cost-effective and large-scale plants of this kind in all major economic regions.