Charlie Waltz

1
BASF Corporate Real Estate Reporting

• Charlie Waltz
• 10/10/05

2
BASF Background

• Were in the chemical industry
• We invest most of our capital in chemical process
  equipment rather than real estate assets
• Equipment that runs automatically, so were not
  people intensive
• Our global headquarters is in Germany
• Our NAFTA headquarters is in New Jersey
• Recent push to improve profitability by sweating
  our assets and shutting down unprofitable sites
• Focused on selling office buildings and plant
  sites

3
Corporate Real Estate Where we report

• In Germany, Corporate Real Estate reports to the
  person responsible for the Ludwigshafen site, an
  integrated chemical production facility employing
  roughly 30,000. They have direct responsibility
  for CRE in Europe and oversight responsibility
  for the rest of the world.
• In NAFTA, the Director Real Estate and Facilities
  reports to the Treasurer who reports to the CFO
• 13 people in Global Real Estate
• 3 people in NAFTA Real Estate

4
Corporate Real Estate Who controls what we
report

• Germany controls via written guidelines
• Reporting requirements
• Which transactions we can do with and without
  oversight or approval from Germany
• A local policy controls what level within the
  NAFTA organization can approve various types of
  transactional documents
• A recent audit resulted in new requirements to
  select brokers via a bidding process and
  obtaining timely property appraisals

5
Corporate Real Estate Sarbanes-Oxley Reporting

• As a company, we believe that our current
  financial reporting and control procedures
  related to real estate are adequate to satisfy
  SOX
• Our outside auditors routinely audit our leasing
  records we only have about 50 leases
• Quarterly, we provide Accounting with a
  spreadsheet projecting total base rent
  obligations
• So far, the only involvement weve had as part of
  a SOX related audit is that we were asked to
  produce a copy of a lease