"We have analyzed our strategy to date in detail and having come to a gratifying conclusion: BASF set the right course in the past. In order to be even better able to meet the challenges of the future, we are now adding these three new elements to our proven strategy," said Dr. Jurgen Hambrecht, chairman of the board of executive directors of BASF Aktiengesellschaft.
In the future, BASF will focus more closely on its business areas that show the most promise in terms of market attractiveness and profitability when deciding on new investments. The most important criterion for investment decisions will be a key performance indicator: EBIT (earnings before income tax) after cost of capital. Using this tool, BASF wants to ensure that its profitability meets the returns expected by the capital markets.
"Our goal is to earn our cost of capital on average over an economic cycle plus a premium on it too," said Hambrecht. "We want to grow profitably. In the past, we have mainly focused on growth, but in the future we want to place even greater emphasis on profitability."
BASF wants to focus even more closely on its customers and potential customers when thinking and acting.
"In the past, we have placed great importance on efficient cooperation with our customers. In the future, we want to further improve our positioning as a realiable partner for long-term, competitive solutions. We believe that true success is always mutual success," explained Hambrecht.
New areas of knowledge such as nanotechnology, materials science, energy management technologies and biotechnology play a particularly important role in BASF’s strategy. These are the areas from which the company expects the most important impulses for the chemistry of the future.
The NEW BASF corporate logo is based on the well-known letters "BASF" which stand for tradition and the continuation of a clear strategy. These are now preceded by two matching squares. "They represent partnership and collaboration to ensure mutual success," said Hambrecht. "One square complements the other, and together the two form a whole." The logo is completed by a claim: "The Chemical Company." Hambrecht explained, "With this claim, we make clear what we are proud of: what we are and want to remain – the world’s leading chemical company."
BASF Philippines president and managing director Lau Kin Pong said that it takes pride in the chemical industry, in its company and its achievements. He added that in the Philippines, its strengths lies in chemicals, agricultural products and nutrition. "In order to remain successful and earn a premium on our cost of capital, we want to further enhance our partnership with our customers. BASF stands for intelligent solutions that make our customers and us successful," added Lau.