BASF The Chemical Company

Francis Kirema Peter van den Hoek

BASF The Chemical Company We create chemistry for a sustainable future

Our chemicals are used in almost all industries We combine economic success, social responsibility and environmental protection Sales 2011: 73,497 million EBIT 2011: 8,586 million Employees (as of December 31, 2011): 111,141 Platzhalter fr Bild

In 2011, BASF filed for around 1,050 new patents worldwide

6 Verbund sites and around 370 production sites

Structure of BASFs segments

Chemicals Inorganics

Plastics Performance Polymers

Performance Products

Functional Solutions Catalysts Construction Chemicals

Agricultural Solutions Crop Protection

Oil & Gas Exploration & Production Natural Gas Trading

Dispersions & Pigments Petrochemicals Polyurethanes Care Chemicals Intermediates Nutrition & Health Paper Chemicals Performance Chemicals

Coatings

Business Units see growth opportunities in several industries

Opportunities 2010-2020, by country, by industry Tunisia Morocco

Focus industries

Algeria

Accelerate growth (capture immediately):

Libya Egypt

Mali Nigeria Sudan Ethiopia

Ivory Ghana Coast

Uganda D.R. of Congo Kenya Tanzania

Agro/Food/Feed, Construction, Home & Personal Care Prepare growth (define and implement presales activities): Mining, Oil/Gas/Refinery, Automotive Discover (evaluate potential): Furniture/Wood, Packaging, Water, Chemicals

Accelerate growth
Agro/Feed/Food Construction Home/Personal Care

Focus countries

Angola

Prepare growth
Mining Oil/Gas/Refinery Automotive

Zambia
Namibia Zimbabwe

Accelerate growth (strengthen, expand):

Algeria, Morocco, Tunisia, Egypt, South Africa Increase focus, presence (discover, develop): Kenya, Ethiopia, Tanzania, Ghana, Nigeria, Close watch on the market (observe, capture later): Libya, Ivory Coast, Angola, D.R. Congo, Sudan

Discover
Packaging Furniture and Wood Water

South Africa

Mauritius

Opportunities in several industries in West and East Africa

Source: Sub-regional Strategy Africa 2020

BU-specific view may differ.

Diversity + Inclusion

Truly rich are those, who willingly accept the variety of differences.
Chuang Tzu
6

Why diversity and inclusion?

The world is changing:
Globalization

Demographics Changing consumption patterns

Regulation
New challenges call for new solutions
7

Classical cost containment will not be sufficient to boost company performance

Earnings improvement [billion ]
2,5

Innovation
2,0 1,5 1,0 0,5 0,0 2003

Value maximization

+
Culture

Costs minimization

Classical efficiency programs

+
Restructuring
2013

2005

2007

2009

2011

We believe that the uniqueness of all our people in all aspects is our asset.

DIVERSITY
And we have to make sure that everyone can contribute.
9

INCLUSION

What is Diversity ?
Gender Race Physical ability Nationality Value systems Life experience Sexual orientation Beliefs

Age
Religion Language

Heritage Thought process

Function Education Talents

Family status
Skills

Perspectives

10

Diversity is the mix! Inclusion is making the mix work!

Andrs Tapia, Chief Diversity Officer/ Emerging Workforce Solutions Leader

Source: BASF Diversity + Inclusion Team, Sept. 2009

11

Business relevance of diversity and inclusion

Local (national) Teams Number of Teams
Study by Distefano, J. J. & Maznevsky, M. L. (2000). Creating Value with Diverse Teams in Global Management, Organizational Dynamics, 29 (1), pp. 45-63.

Multinational Teams

Multinational Teams

Performance Leaders ignore and suppress cultural differences Cultural differences become an obstacle to performance Leaders acknowledge and support cultural differences Cultural differences become an asset to performance
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Business case example: Localizing development of products

Increase BASFs market share

in footwear application in China

Understand differences in anatomy

and customize solution for local needs

Generated high interest from Chinese sports

shoes companies with first sales in 2009

Footwear market potential in China:

1.1 billion with growth by 15 %

Source: BASF

13

Business case example: Plant health business model

Creation of Blue Ocean market for BASF Introduced a system for improving plant health
beyond crop protection against pests

Success resulted from a inter-regional and

inter-functional team of employees and customers

3 digit million Euro additional sales for BASF

Source: BASF

14

Global measures to enhance diversity and inclusion

D+I basics
Ambassador network Benchmark panel Joint strategic review

Global Career Development

Intercultural awareness training D&I in recruiting D&I as leadership competency

Communication strategy
Awareness campaign Global movies Comics D+I online trainer

Change management
D+I events D+I trainings Cultural navigator Management dialogues

Source: BASF Diversity + Inclusion Team

15

Individual and team profile

1. Mark your preference individually

I value change

===========

============= ============

I value tradition

I prefer analy tical, linearproblem =========== solving

============= ============

I prefer intuitive, lateral problem solving

2. Transfer your results to the team profile sheet 3. Discuss amongst your team: a. Where are similarities and differences? b. What are your teams strengths? c. What could be potential conflicts? d. How are you going to deal with the conflicts? e. What kind of tasks would be ideal for your team?
4/15/2009

I feel more productiv e when working on my own I easily accept risk

===========

============= ============

I feel more productiv e working with a team

I try to avoid risk =========== ============= ============

I prefer to discuss different opinions

===========

============= ============

I prefer bein g in line with others

Instructions have to be specific and clear I like competition among st people

===========

============= ============

Instructions always should have scope

===========

============= ============

I like collabor ation with people

I like being in time =========== ============= ============

I am flexible with time

To get my work done and achiev e my objective is impo rtant for me

===========

============= ============

The goal of the team is important and has first priority

INTERNAL

16

Introduction of Inclusion of Diversity in 2010 into global competency framework

17

Business unit engagements

3 sessions in 3 months

1
Kickoff
Understand concept and deliverables Capabilities

2
Analysis: as-is vs. to-be:
Talent Pools Inclusion

3
Measures / Targets
Align on measures and implementation plan, agree on target ranges

D&I concept, implementation plans and targets are well understood and established

18

Top priority: management commitment

19

Implementing diversity and inclusion

20

Migration, aging and feminization lead to a more heterogeneous composition of work force
Aging population
[65+ per working age person %]

Migration
[non-whites %]

Feminization of labor force

[female graduates %, MINT & business]

49 40 42

35
31

17 7
1980 2020

19

1980

2020

2000

2020

2000

2015

China

Germany

USA

EU-27

Diversity is the new normal

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