Executive letter2

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I hope the start of 2018 was as energizing for you as it was for me. After a demanding year and a much-deserved break, our teams are back in action driving growth for BASF.

This year has not been without its own challenges, however. Early on, we faced severe winter conditions at our Gulf Coast sites. Our teams are working hard as “one BASF” to mitigate negative effects and continue to win with our customers. I applaud their efforts and their spirit.

On the positive side, we have much to look forward to. Our plans are in motion to acquire Bayer’s fast-growing and profitable herbicide and seed businesses, pending the approval of anti-trust authorities. This acquisition will have a deep and lasting impact on our region – especially in Canada, but also in the U.S. Most importantly, it will enable us to deliver even more innovative products to our customers. Combined with the recent outstanding performance of our existing AP portfolio, we are on the right path to grow in this industry.

The North American Scorecard has also been updated for 2018. This simple tool brings transparency and focus to key areas that will drive our future growth. Last year, we grew by 5 percent in cCM1 with 45 of our most strategic customers – a goal we set, tracked and achieved in 2017. This year, we’ll expand our focus with a new target for this KPI: to grow our cCM1 with all 210 strategic customers to $3.9 billion.

We’ve also broadened our safety KPI to include total recordable injuries in addition to the established process safety incidents. We realize that we still have a long way to go to improve process safety performance, and we also want to resume our focus on achieving best-in-class occupational safety. Measuring both factors on our Scorecard offers a more holistic view of our progress.

“We are on the right path to grow in this industry.”

— Manfredo Rübens

Executive Vice President and Chief Financial Officer, BASF Corporation

Additionally, our North American Leadership Team will continue to visit manufacturing sites to learn from you about our challenges and what’s working well. I recently visited our sites in Beaumont and Bishop, Texas; Brighton, Colorado; and Tultitlán, Mexico, where I was inspired by our colleagues’ commitment to our zero loss of containment mindset. I ask all of you to keep this top of mind.

Finally, in the year ahead we will search for new and better ways to put customers first and win together through continuous improvement, simplification, digitalization and empowerment. And above all, we will continue to challenge the status quo. In this issue of BASF info, you’ll hear from colleagues who are making a difference. I hope their stories inspire you to do the same.

Best regards,

Manfredo Rübens

Executive Vice President and Chief Financial Officer, BASF Corporation

Executive letter