Glossary |
2-ethylhexanol
A completely synthetic alcohol used, for example, in the production of plasticizers.
2-propylheptanol
Starting product in the production of plasticizers and auxiliaries for chemical and technical industry.
ABS
Plastics based on acrylonitrile-butadiene-styrene copolymers.
acrylic monomers
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.
Admixture Systems
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.
Agricultural Products
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.
audits for safety, environment and health
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.
automotive OEM coatings
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).
automotive refinish coatings
Coatings systems for the repair of vehicles under the trademarks Glasurit® and R-M®.
barrels of oil equivalent (BOE)
International standard for comparing the thermal energy of different fuels.
biotechnology
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.
CO2 equivalent
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).
C4 complex
Part of the production complex in Port Arthur, Texas. Here, three successive chemical processes are used to obtain butadiene, alkylate gasoline and propylene from a C4 stream (a mixture of various hydrocarbons each containing four carbon atoms) from the steam cracker.
Catalysts
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.
Coatings
The Coatings division comprises the automotive refinish coatings,industrial coatings and decorative paints business units.
compliance
Compliance is an important element of corporate governance. It refers to the company’s behavior in accordance with laws, guidelines and voluntary codices.
Construction Chemicals
The Construction Chemicals division comprises the Admixture Systems and Construction Systems businesses. Admixture Systems produces additives to ensure optimal concrete properties. The Construction Systems portfolio includes products for building systems, sport and industrial flooring applications and façades.
Construction Systems
The Construction systems business unit offers, among other things, building products, sports and industrial flooring as well as façade systems.
corporate governance
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.
COSO
The Committee of Sponsoring Organizations of the Treadway Commission is a voluntary privatesector organization dedicated to improving the quality of financial reporting through business ethics, effective internal controls and corporate governance.
decorative paints
Coatings for the interior and exterior of buildings.
dividend yield
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.
downstream plant
A plant that is downstream of the steam cracker in the chemical value- adding process.
earnings per share
The amount earned by BASF in euros per share based on the weighted number of shares.
EBIT
Earnings before interest and taxes.
EBIT after cost of capital
We use this key performance and management indicator for our operating divisions and business units to ensure that we satisfy the returns expected by providers of equity and debt on the assets employed.
EBITDA
Earnings before interest, taxes, depreciation and amortization
EBITDA margin
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.
economies of scale
Cost advantages derived from modern world-scale plants.
energy management
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 insulating materials. Energy management at BASF also involves the exploration for and production of crude oil and natural gas in selected regions by our subsidiary Wintershall AG.
ERM
Enterprise Risk Management is a supplement to the original COSO model that was published in 2004.
exploration
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.
extrusion
Production of films from plastic granules using pressure and heat.
FASB
The Financial Accounting Standards Board is a U.S.-based body that is accountable to the U.S. Securities and Exchange Commission (SEC). It prepares and publishes Statements of Financial Accounting Standards (SFAS).
fermentation
Fermentation is a process in which biological materials are reacted with the aid of bacterial, fungal or cell cultures, or with enzymes.
Fine Chemicals
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.
free cash flow
Cash provided by operating activities less payments related to property, plant and equipment and intangible assets.
Functional Polymers
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, carpeting and paper industries. The division operates production facilities in all important regions of the world, consistently capitalizing on the BASF Verbund and expanding its global presence.
fungicide
An active ingredient that kills fungi or inhibits their growth (for example in crops).
futures
A binding agreement between two partners to buy or sell a specific amount of an exactly defined commodity or financial instrument at a particular price on a stipulated future date.
growth clusters
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.
HDI
Hexamethylene diisocyanate is a raw material used in the production of automotive, industrial and plastic coatings.
herbicide
An active ingredient used to destroy weeds.
HPPO process
Technology to produce propylene oxide (PO) from hydrogen peroxide (HP). HPPO technology is more environmentally and economically viable than conventional PO methods of production. PO is an intermediate, for example, in the production of polyurethane.
IAS
International Accounting Standards (see also IFRS)
IFRIC
The International Financial Reporting Interpretations Committee is a committee that publishes proposed guidance on IFRS and IAS.
IFRS
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 Regulation, IFRS are mandatory for listed companies in the European Union since 2005.
industrial coatings
Coating materials for industrial goods with the exception of vehicles.
Inorganics
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.
insecticide
An active ingredient used to destroy harmful insects.
Intermediates
The Intermediates division develops, produces and markets a comprehensive range of intermediates worldwide. It operates out of 14 production sites in Europe, Asia, North and South America. The most important of the division’s more than 600 products include amines, diols, polyalcohols and acids. Of which more than 25 % are for captive use within the BASF.
key performance indicator (KPI)
A key performance indicator is a quantifiable measurement that can be used to track the progress in achieving important goals within a company.
Kyoto protocol
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.
liquefied petroleum gas (LPG)
Liquefied natural gases, e.g., propane, butane and propane-butane blends, are used in the heating market, as an alternative feedstock for cracker operations and for other chemical processes.
metabolic profiling
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.
MDI
Diphenylmethane diisocyanate: a polyurethane basic product
MWh
Megawatt hour: a measuring unit for energy
MWhel
Electric megawatt hour: a measuring unit for electrical energy
NAFTA
Free trade zone between the United States, Canada and Mexico; established in the North American Free Trade Agreement. This economic region is one of BASF's four business regions.
nanotechnology
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 a few hundred nanometers. This includes the production of nanoparticles and the creation of nanostructures, which in turn make it possible to produce products with new or improved properties. Examples include starting materials for textiles that absorb UV radiation and waterrepellant surface coatings for the textile and automotive industries.
naphtha
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.
OECD
The Organization for Economic Cooperation and Development is an international body headquartered in Paris, France.
Oil & Gas
Our oil and gas operations are conducted by Wintershall AG and its subsidiaries and include exploration and production of crude oil and natural gas, crude oil and natural gas trading, and the leasing of natural gas storage and transport facilities.
oil equivalent
International standard for comparing the thermal energy of different fuels.
payout ratio
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.
PBT
Polybutylene terephthalate is an engineering plastic used for headlight frames, computer keyboards and housings for household appliances.
Performance Chemicals
The Performance Chemicals division includes the business areas Coatings, Plastics & Specialties; Automotive & Oil Industry; Textiles; Leather; and Detergents & Formulators. In all five business areas, we supply high-performance specialties worldwide that add value for our customers directly without further chemical processing.
Performance Polymers
The Performance Polymers division produces engineering plastics for use in the automotive and electronics industries, for example, as well as polyamide and polyamide intermediates.
Petrochemicals
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. Typical examples are butanol, phthalic anhydride and ethylene oxide, which are processed primarily within the BASF Verbund.
plant biotechnology
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.
plant health
Crop protection products that increase crop yield and improve quality beyond disease and insect control.
PolyTHF®
Polytetrahydrofuran: a starting material for elastic fibers
Polyurethanes
The Polyurethanes division is one of the world's leading producers of polyurethanes. Our product range includes the entire spectrum of basic polyurethane products, tailormade polyurethane systems and polyurethane specialties. Polyurethanes are used, for example, as rigid or flexible foams for domestic appliances and mattresses, and as specialty plastics for the automobile and footwear industries.
product innovations
New or improved products and applications, which have been on the market for less than five years.
REACH
An E.U. regulatory framework for the registration, evaluation and authorization of chemicals.
Responsible Care®
A worldwide initiative by the chemical industry to continuously improve its performance in the fields of environmental protection, safety and health.
return on assets
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.
return on equity after tax
This describes the return we make on the average equity used during a fiscal year. It is calculated as income from minority interests as a percentage of average equity.
return on operating assets
The return on operating assets describes the return made by an individual segment or the BASF Group on its allocated assets. It is calculated as income from operations as a percentage of average operating assets.
return on sales
The return on sales describes the return we make from our operations as a percentage of sales. It is calculated as income from operations as a percentage of sales.
special items
One-time costs or one-time payments that significantly affect the earnings of a segment or the BASF Group. Special items include payments arising from restructuring measures and severance payments.
spot market
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.
steam cracker
A large plant in which steam is used to "crack" naphtha (petroleum). The resulting petrochemicals - above all, ethylene and propylene - are the starting materials used to manufacture most of BASF's products.
stakeholders
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.
Styrenics
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.
sustainable development
The objective of sustainable development is to meet the economic, environmental and social needs of society without harming the development opportunities of future generations.
swap
An agreement between two companies to exchange payment flows in the future. In an interest swap, a fixed interest rate is exchanged for a floating one for an agreed nominal amount.
TDI
Toluene diisocyanate: a polyurethane basic product
technology platforms
Our four global technology platforms Polymer Research, Chemicals Research & Engineering, Specialty Chemicals Research and Plant Biotechnology Research are at the center of our Know-How Verbund.
THF
Tetrahydrofuran: a starting material for PolyTHF®
TPU
Thermoplastic polyurethanes are specialty plastics used in a wide range of applications, e.g., in the automotive, sportswear and footwear industries.
Traits
Plant characteristics such as increased yield or increased resistance to drought.
value-adding chain
Successive steps in a production process, from the raw materials through various intermediate steps to the finished product.
Verbund
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: Even by-products or waste from one plant can often be used as raw materials in a neighboring plant. We thus save energy and raw materials, reduce logistics costs and use infrastructure facilities jointly.
WINGAS GmbH
WINGAS GmbH is a joint venture company with our Russian partner Gazprom. BASF received a 65% share in WINGAS at the end of 2006. 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.
white biotechnology
An area of biotechnology that deals with products and processes in the chemical, textile and food industries. This involves, for example, the biotechnological production of enzymes and chirale intermediates.
world-scale plants
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 (see also: economies of scale). BASF is therefore committed to cost-effective large-scale plants of this kind in all major economic regions.
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