MIRA INFORM REPORT

Report Date :

10.07.2007

IDENTIFICATION DETAILS

Name :	BASF SOUTH EAST ASIA PTE LTD
Registered Office :	7 Temasek Boulevard, #35-01, Suntec Tower One, Singapore - 038987
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^28/06/1978
Com. Reg. No.:	^197801536N
Legal Form :	^Pte Ltd
Line of Business :	Deal in Chemical Products and to act as a service company to its Holding Company and other related Companies

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

BASF SOUTH EAST ASIA PTE LTD

Line Of Business 

DEAL IN CHEMICAL PRODUCTS AND TO ACT AS A SERVICE COMPANY TO ITS HOLDING COMPANY AND OTHER RELATED COMPANIES

Parent Company

BASF AKTIENGESELLSCHAFT

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : US$2,750,126,000

Networth : US$460,180,000

Paid-Up Capital : US$293,820,000

Net result : US$81,022,000

Net Margin(%) : 2.95

Return on Equity(%) : 17.61

Leverage Ratio : 1.33

COMPANY IDENTIFICATION

^{Subject Company : BASF SOUTH EAST ASIA PTE LTD}

^{Former Name : BASF SOUTH EAST ASIA REGIONAL}

^{Business Address: 7 TEMASEK BOULEVARD}

^#35-01

^{SUNTEC TOWER ONE}

^{Town: SINGAPORE}

^{Postcode: 038987}

^{County: -}

^{Country: Singapore}

^{Telephone: 6337 0330}

^{Fax: 6334 0330}

^{ROC Number: 197801536N}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{BASF SOUTH EAST ASIA REGIONAL HEADQUARTERS PTE. LTD.}

^{DATE OF CHANGE OF NAME: 22/01/1998}

^{BASF SOUTH EAST ASIA PTE LTD}

^{DATE OF CHANGE OF NAME: 23/02/1990}

SUMMARY

^{All amounts in this report are in: USD unless otherwise stated}

^{Legal Form: Pte Ltd}

^{Date Inc.: 28/06/1978}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 2,750,126,000}

^{Networth : 460,180,000}

^{Capital: -}

^{Paid-Up Capital: 293,820,000}

^{Employees: 350}

^{Net result : 81,022,000}

^{Share value: -}

^{AUDITOR: KPMG}

^{BASED ON ACRA'S RECORD AS AT 26/06/2007}

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY : 520,300 SGD 520,300,000}

^{PAID UP ORDINARY : - SGD 520,300,000}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 28/06/1978}

PRINCIPAL(S)

^{SRINIVASAN REGUNATHAN G5619921M Director}

DIRECTOR(S)

^{SRINIVASAN REGUNATHAN G5619921M Director}

^{Appointed on : 01/10/2001}

^{Street : 335 BUKIT TIMAH ROAD}

^#20-02

^{WING ON LIFE GARDEN}

^{Town: SINGAPORE}

^{Postcode: 259718}

^{Country: Singapore}

^{TAN TER YEE S1654262H Company Secretary}

^{Appointed on : 30/09/2001}

^{Street : 17 HUME AVENUE}

^#04-01

^{Town: SINGAPORE}

^{Postcode: 598726}

^{Country: Singapore}

^{TOM GUSTAV WITZEL G5756034M Director}

^{Appointed on : 01/09/2004}

^{Street : 7 TEMASEK BOULEVARD}

^#35-01

^{SUNTEC TOWER ONE}

^{Town: SINGAPORE}

^{Postcode: 038987}

^{Country: Singapore}

^{JOHN DUNCAN FASTIER G5830060N Director}

^{Appointed on : 01/09/2005}

^{Street : 4 ARDMORE PARK}

^#09-01

^{Town: SINGAPORE}

^{Postcode: 259960}

^{Country: Singapore}

^{HERMANN ALTHOFF G5846395M Director}

^{Appointed on : 05/01/2006}

^{Street : 7 TEMASEK BOULEVARD}

^#35-01

^{SUNTEC TOWER ONE}

^{Town: SINGAPORE}

^{Postcode: 038987}

^{Country: Singapore}

^{YANG NELLIE S0163132B Company Secretary}

^{Appointed on : 31/12/2005}

^{Street : 38 CORONATION ROAD WEST}

^#03-01

^{ASTRID MEADOWS}

^{Town: SINGAPORE}

^{Postcode: 269257}

^{Country: Singapore}

^{WOLFGANG HAPKE 334112344 Director}

^{Appointed on : 17/04/2006}

^{Street : HOUSE NO. 10}

^{7 STANLEY BEACH ROAD}

^{TAI TAM}

^{Town: HONG KONG}

^Postcode:

^{Country: Hong Kong}

^{TILMAN KRAUCH 4156050597 Director}

^{Appointed on : 17/04/2006}

^{Street : HOUSE #8, 2 BARKER ROAD}

^{THE PEAK}

^{Town: HONG KONG}

^Postcode:

^{Country: Hong Kong}

FORMER DIRECTOR(S)

^{CELINA GOH SU YIN S1707084C}

^{TAN MEI YING DIANA S1788152C}

^{WERNER FRIDOLIN BURGERT F5641952R}

^{VICTOR SZECHENYI 00AE18522}

^{RALF WILHELM @ WALTER NEUMANN F5608627R}

^{DIETER SCHERF 2200013471}

^{JAIME BORBON MENDOZA 22010097}

^{LIM KENG HONG ALVIN S1650302I}

^{GRAHAM NEVILLE MEANS F0979696R}

^{RALF JOACHIM HEROLD F5513314W}

^{ECKHARD HILGEMANNN F5598060T}

^{THOMAS HUFNAGEL F5624676L}

^{DOREEN NG MEI LING S7439674G}

^{HARALD WERNER ROBERT LAUKE F5602097R}

^{NICHOLAS CHAN WAI-KUIN S1746426D}

^{AZIMA MOIZ S6918588F}

^{WILLY BERT HOVEN-NIEVELSTEIN G5673974U}

^{LENG SIEW WEI ALOYSIUS S0081886J}

ACTIVITY(IES)

^{BUSINESS SERVICES Code:4}

^{BASED ON ACRA'S RECORD AS AT 26/06/2007}

^{1) HEAD/REGIONAL OFFICES OF ENTERPRISES OPERATING ABROAD}

CHARGES

No Charges On Premise/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

^{Date: 28/06/2007 Tax rate: 10}

^{Site Address : 7 TEMASEK BOULEVARD}

^#35-01/02/03

^{Town: SINGAPORE Postcode: 038987}

^{Country: Singapore}

^{Annual Value: 911,000 (SGD)}

*TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

*TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER/OWNED BY COMPANY.

*FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

*ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

BANKERS

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

^{DBS BANK LTD.}

^{DEUTSCHE BANK AG}

ASSOCIATED COMPANY(IES)

^{ELLBA EASTERN (PTE) LTD}

^Singapore

SHAREHOLDERS(S)

^{BASF AKTIENGESELLSCHAFT 520,300 Company}

^{Street : CARL-BOSCH-STR. 38}

^LUDWIGSHAFEN

^{Town: REPUBLIC OF GERMANY}

^{Postcode: 67056}

^{Country: Germany}

FORMER SHAREHOLDER(S)

^{ZINSER ROBERT 1}

^{ERHARDT KLAUS D 1}

^{WOLF KURT MICHAEL 1}

HOLDING COMPANY

^{BASF AKTIENGESELLSCHAFT UF02604D % : 100}

SUBSIDIARY(IES)

BASF ELECTRONIC MATERIALS PTE LTD

Singapore

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : UPWARD

Financial Situation: AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in: USD}

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 21/06/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 449,000 218,000 -}

^{Intangible Fixed Assets: 71,000 61,000 -}

^{Tangible Fixed Assets: 31,650,000 33,952,000 35,353,000}

^{Investments 252,345,000 258,069,000 289,741,000}

^{Total Fixed Assets: 284,515,000 292,300,000 325,094,000}

^{Inventories: 95,484,000 110,484,000 71,686,000}

^{Receivables: 449,771,000 406,952,000 317,851,000}

^{Cash,Banks, Securitis: 4,618,000 7,117,000 6,181,000}

^{Other current assets: 237,827,000 185,549,000 140,383,000}

^{Total Current Assets: 787,700,000 710,102,000 536,101,000}

^{TOTAL ASSETS: 1,072,215,000 1,002,402,000 861,195,000}

^{--- LIABILITIES}

^{Equity capital: 293,820,000 293,820,000 293,820,000}

^{Reserves: - - 78,997,000}

^{Profit & loss Account: 166,360,000 85,338,000 29,619,000}

^{TOTAL EQUITY: 460,180,000 379,158,000 402,436,000}

^{L/T deffered taxes: 20,674,000 18,361,000 2,810,000}

^{Total L/T Liabilities: 20,674,000 18,361,000 2,810,000}

^{Trade Creditors: 518,885,000 542,761,000 343,962,000}

^{Prepay. & Def. charges: 30,292,000 27,296,000 -}

^{Due to Bank: - - 71,198,000}

^{Provisions: 6,602,000 4,875,000 5,540,000}

^{Other Short term Liab.: 35,582,000 29,951,000 35,249,000}

^{Total short term Liab.: 591,361,000 604,883,000 455,949,000}

^{TOTAL LIABILITIES: 612,035,000 623,244,000 458,759,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 2,750,126,000 2,515,982,000 1,765,212,000}

^{Gross Profit: 188,680,000 178,632,000 154,366,000}

^{Result of ordinary operations - - 81,750,000}

^{NET RESULT BEFORE TAX: 89,523,000 75,667,000 78,518,000}

^{Tax : 8,501,000 7,785,000 7,687,000}

^{Net income/loss year: 81,022,000 67,882,000 70,831,000}

^{Interest Paid: 5,785,000 1,342,000 3,232,000}

^{Depreciation: 1,400,000 1,651,000 -}

^{Dividends: - 78,997,000 78,997,000}

^{Directors Emoluments: 1,709,000 982,000 -}

^{Purchases,Sces &}

^{Other Goods: 2,561,964,000 2,337,350,000 -}

^{Wages and Salaries: 36,152,000 34,865,000 -}

^{Financial Income: 11,127,000 2,450,000 -}

RATIOS

^{31/12/2005 31/12/2004 31/12/2003}

^{Turnover per employee: 7857502.86 7188520.00 5043462.86}

^{Net result / Turnover(%): 0.03 0.03 0.04}

^{Stock / Turnover(%): 0.03 0.04 0.04}

^{Net Margin(%): 2.95 2.70 4.01}

^{Return on Equity(%): 17.61 17.90 17.60}

^{Return on Assets(%): 7.56 6.77 8.22}

^{Dividends Coverage: 0.86 0.90}

^{Net Working capital: 196339000.00 105219000.00 80152000.00}

^{Cash Ratio: 0.01 0.01 0.01}

^{Quick Ratio: 0.77 0.68 0.71}

^{Current ratio: 1.33 1.17 1.18}

^{Receivables Turnover: 58.88 58.23 64.82}

^{Leverage Ratio: 1.33 1.64 1.14}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Dividends Coverage : Net income loss year/Dividends}

^{Net Working capital : Total current assets - Total short term liabilities}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE STABLE IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED SOUND WITH NET WORTH IMPROVED BY 21.37% FROM US$379,158,000 IN FY 2004 TO US$460,180,000 IN FY 2005. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$166,360,000 (2004: US$85,338,000); A RISE OF 94.94% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 87.74% (2004: 89.73%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$518,885,000 (2004: US$542,761,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-OUTSIDE PARTIES - 2005: US$29,093,000 (2004: US$33,246,000)}

^{-HOLDING COMPANY - 2005: US$363,080,000 (2004: US$390,881,000)}

^{-RELATED COMPANIES - 2005: US$87,501,000 (2004: US$69,916,000)}

^{-JOINT VENTURE - 2005: US$39,211,000 (2004: US$48,718,000)}

^{IN ALL, LEVERAGE RATIO FELL FROM 1.64 TIMES TO 1.33 TIMES AS A RESULT OF A DECLINE IN TOTAL LIABILITIES AND A RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.33 TIMES, UP FROM 1.17 TIMES AND QUICK RATIO IMPROVED TO 0.77 TIMES FROM 0.68 TIMES IN FY 2004.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 86.60% FROM US$105,219,000 IN FY 2004 TO US$196,339,000.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 9.31% FROM US$2,515,982,000 IN FY 2004 TO US$ 2,750,126,000 AND NET PROFIT ROSE BY 19.36% TO US$81,022,000 (2004: US$67,882,000). HENCE, NET MARGIN ROSE TO 2.95% (2004: 2.70%).}

^REVENUE:

^{-GOODS - 2005: US$2,704,136,000 (2004: US$2,474,101,000)}

^{-SERVICE INCOME - 2005: US$45,990,000 (2004: US$41,881,000)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS HEALTHY AT 16.48 TIMES.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-STAFF LOANS - 2005: US$449,000 (2004: US$218,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SUBSEQUENT EVENT}

^{SUBSEQUENT TO THE YEAR END, THE COMPANY HAS ACQUIRED ALL THE ASSETS AND LIABILITIES OF BASF ELECTRONIC MATERIALS PTE LTD, A WHOLLY OWNED SUBSIDIARY, FOR US$18,006,000.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 28/06/1978 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "BASF SOUTH EAST ASIA PTE LTD"}

^{SUBSEQUENTLY, ON 23/02/1990, THE COMPANY CHANGED TO ITS NAMESTYLE AS "BASF SOUTH EAST ASIA REGIONAL HEADQUARTERS PTE. LTD.".}

^{SUBSEQUENTLY, ON 22/01/1998, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "BASF SOUTH EAST ASIA PTE LTD".}

^{AS AT 26/06/2007, THE COMPANY HAS ISSUED AND PAID UP OF 520,300 SHARES OF A VALUE OF S$520,300,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) HEAD/REGIONAL OFFICES OF ENTERPRISES OPERATING ABROAD}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF DEAL IN CHEMICAL PRODUCTS AND TO ACT AS A SERVICE COMPANY TO ITS HOLDING COMPANY AND OTHER RELATED COMPANIES.}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^{BACKGROUND OF BASF GROUP:}

^{FROM A MANUFACTURER OF THE FIRST SYNTHETIC DYES IN GERMANY IN 1865, BASF HAS DEVELOPED INTO A LEADING GLOBAL CHEMICAL COMPANY PRODUCING A COMPREHENSIVE RANGE OF CHEMICAL PRODUCTS. WORLDWIDE, BASF HAS CUSTOMERS IN MORE THAN 170 COUNTRIES, PRODUCTION SITES IN 41 COUNTRIES AND APPROXIMATELY 82,000 EMPLOYEES. IN ASIA PACIFIC, BASF OWNS OR HAS EQUITY HOLDINGS IN 62 COMPANIES IN 15 COUNTRIES. THEY HAVE AROUND 10,000 EMPLOYEES ENGAGED IN THE DEVELOPMENT, MANUFACTURING AND SALE OF A WIDE RANGE OF PRODUCTS FOR AGRICULTURAL PRODUCTS AND NUTRITION, COLORANTS AND FINISHING PRODUCTS, CHEMICALS, AND PLASTICS AND FIBERS FOR NUMEROUS APPLICATIONS IN ALMOS ALL INDUSTRIES.}

^{BACKGROUND OF THE SUBJECT:}

^{THE SOUTHEAST ASIA DIVISION COVERS 24 COMPANIES IN 11 COUNTRIES INCLUDING:}

^{* ASEAN}

^{* THE INDIAN SUB-CONTINENT}

^{* AUSTRALIA/NEW ZEALAND}

^{* PLUS A REPRESENTATIVE OFFICE IN VIETNAM}

^{PRODUCTION FACILITIES ARE LOCATED IN:}

^{* SINGAPORE}

^{* MALAYSIA}

^{* INDONESIA}

^{* THAILAND}

^{* THE PHILIPPINES}

^{* AUSTRALIA}

^{* INDIAN SUB-CONTINENT}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* TRADING OF PETROCHEMICAL PRODUCTS AND REGIONAL HEADQUARTER}

^{* RESPONSIBILITIES FOR SEVERAL REGIONAL BUSINESS UNITS (RBUS) BASED IN SINGAPORE}

^{THE RBUS ARE:}

^{* FUNCTIONAL POLYMERS}

^{* PETROCHEMICALS}

^{* STYRENIC POLYMERS}

^{* ENGINEERING PLASTICS}

^{* AGRICULTURAL PRODUCTS}

^{MANAGES AND PROVIDES VALUE-ADDED SERVICES IN:}

^{* LOGISTICS DISTRIBUTION}

^{* MARKETING}

^{* FINANCE AND TREASURY}

^{* INFORMATION TECHNOLOGY AND APPLICATIONS}

^{FOR BASF SUBSIDIARIES IN THE ENTIRE ASIA PACIFIC REGION}

^{BASF'S MAJOR DISTRIBUTION HUB IN THE REGION. THE REGIONAL DISTRIBUTIO CENTER (RDC), OPENED IN 1998, RDC SERVES MORE THAN 50 PORTS IN ALL COUNTRIES IN ASIA FROM SINGAPORE, WITH MORE THAN 1000 PRODUCTS DELIVERED FROM BASF GLOBAL PRODUCTION NETWORK. THE RDC HAS BEEN ABLE TO OPTIMIZE INVENTORY LEVELS WHILE REDUCING THE LEAD-TIME REQUIRED TO SERVICE CUSTOMERS BY AS MUCH AS 60%.}

^{IN SINGAPORE, BASF SOUTH EAST ASIA HAS A 50:50 MANUFACTURING JOINT VENTURE WITH SHELL CHEMICALS, CALLED ELLBA EASTERN PTE LTD, FOR THE PRODUCTION OF STYRENE MONOMER AND PROPYLENE OXIDE (SM/PO) ON JURONG ISLAND.}

^{IN 2005, BASF ACQUIRED THE ELECTRONICS CHEMICAL BUSINESS OF MERCK. IN SINGAPORE, THIS INVOLVED ONE SITE IN TUAS, WHICH INCLUDES A WHOLLY-OWNED SUBSIDIARY AS WELL AS A JOINT VENTURE (SANTOKU BASF).}

^{PRODUCTS :}

^{* HIGH-PURITY PROCESS CHEMICALS}

^{* INNOVATIVE SPECIAL MIXTURES}

^{* ELECTRONIC CHEMICALS (MAINLY USED BY THE FLAT PANEL DISPLAY INDUSTRY AND THE SEMICONDUCTOR INDUSTRY FOR MICROCHIP PRODUCTION)}

^{RESEARCH FACILITY IN SINGAPORE}

^{COMPETENCE CENTER FOR NANOSTRUCTURED SURFACES}

^{* BASF'S FIRST RESEARCH FACILITY IN ASIA FOR NANOTECHNOLOGY}

^{(OPENED ON APRIL 28, 2006)}

^{GOALS OF THE NEW RESEARCH FACILITY -}

^{* TO REALIZE INNOVATIVE IDEAS IN PRODUCT DEVELOPMENT FOR EXISTING GROWTH MARKETS (AUTOMOTIVE, CONSTRUCTION, HOUSEHOLD, COSMETICS AND ELECTRONICS)}

^{* TO SUPPORT UNIQUE SCIENTIFIC SOLUTIONS FOR EMERGING MARKETS (ELECTRONICS, ENERGY AND RESOURCE CONSERVATION)}

^{* TO FURTHER DEVELOP THE ACTIVITIES IN NANOTECHNOLOGY AS A KEY TECHNOLOGY FOR BASF.}

^{PRODUCTS DEALINGS (TRADE NAMES) (APPLICATIONS):}

^{PLASTICS RAW MATERIALS}

^{* POLYSTYRENE (POLYSTYROL) (ELECTRONIC INDUSTRY)}

^{* EXPANDABLE POLYSTYRENE (STYROPOR) (PACKAGING APPLICATIONS AND CONSTRUCTION)}

^{* POLYURETHANES (LUPRANAT) (CONSTRUCTION AND HOME PRODUCTS INDUSTRIES)}

^{* ENGINEERING PLASTICS (ULTRADUR, ULTRAMID, ULTRAFORM, ULTRASON E AND ULTRASON S) (AUTOMOTIVE AND HOUSEHOLD APPLIANCES INDUSTRIES)}

^{INDUSTRIAL CHEMICALS}

^{* INORGANIC CHEMICALS, GLUES, PLASTICISERS (PVC, INDUSTRIAL CHEMICALS FOR PAINTS)}

^{* CHEMICAL INTERMEDIATES (PHARMACEUTICALS AND OTHER INDUSTRIAL RAW MATERIALS)}

^{FINE CHEMICALS}

^{* FRAGRANCE AROMA CHEMICALS (COSMETICS AND FOOD INDUSTRY)}

^{* VITAMINS (LUTAVIT)(FOOD AND FEED INDUSTRY)}

^{PIGMENTS & DYESTUFFS}

^{* AUXILIARIES AND FINISHING AGENTS (TEXTILES, PAINTS, PRINTING INKS, OFFICE REQUISITES AND OTHERS)}

^{NEWS: CONVERSION OF BASF INTO SE: NEXT MILESTONE ACHIEVED}

^{-SOURCE: BASF WEBSITE}

^{DATE: 14/06/2007}

^{THE CONVERSION OF BASF AKTIENGESELLSCHAFT INTO A EUROPEAN COMPANY (SOCIETAS EUROPAEA, SE) HAS REACHED A FURTHER MILESTONE: ON JUNE 12, THE SPECIAL NEGOTIATING BODY OF EMPLOYEES (SNB) HELD THE CONSTITUENT MEETING IN HEIDELBERG, GERMANY. THE 29 EUROPEAN EMPLOYEE REPRESENTATIVES OF BASF VOTED FOR ROBERT OSWALD, CHAIRMAN OF THE CENTRAL WORKS COUNCIL, TO CHAIR THE SNB.}

^{AT ITS MEETING, THE SNB ESTABLISHED A TWELVE-MAN NEGOTIATING COMMITTEE, COMPRISING REPRESENTATIVES FROM BELGIUM, GERMANY, FRANCE, GREAT BRITAIN, ITALY, POLAND, SPAIN AS WELL AS AN EXECUTIVE REPRESENTATIVE. THE COMMITTEE WILL NEGOTIATE AN EMPLOYEE PARTICIPATION AGREEMENT WITH REPRESENTATIVES OF THE COMPANY'S MANAGEMENT BY NO LATER THAN NOVEMBER. HANS-CARSTEN HANSEN, PRESIDENT HUMAN RESOURCES AT BASF IS CHIEF NEGOTIATOR FOR THE MANAGEMENT BOARD OF BASF. THE AGREEMENT GOVERNS ISSUES SUCH AS CROSS-BORDER INFORMATION FOR AND CONSULTATION OF EMPLOYEES AS WELL AS THEIR PARTICIPATION ON THE SUPERVISORY BOARD. BASF PLANS TO COMPLETE THE CONVERSION INTO A SE IN THE FIRST QUARTER OF 2008 AFTER CONCLUDING NEGOTIATIONS WITH THE SPECIAL NEGOTIATING BODY OF EMPLOYEES.}

^{BASF'S SHAREHOLDERS WILL BE PROVIDED WITH MORE DETAILED INFORMATION ON TRANSFORMATION OF THE COMPANY'S LEGAL FORM IN THE INVITATION TO THE ANNUAL MEETING, WHICH WILL BE SENT OUT AS OF MARCH 16, 2007.}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 09/03/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{*COMPANY - 2007: 350}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 09/03/2007.}

^{THE COMPANY IS A SUBSIDIARY OF BASF AKTIENGESELLSCHAFT, INCORPORATED IN THE FEDEAL REPUBLIC OF GERMANY WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES: (31 DECEMBER)}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 318; 2003: 312)}

^{* GROUP - 2005: - (2004 : -; 2003: -)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{7 TEMASEK BOULEVARD}

^{#35-01 SUNTEC TOWER ONE}

^{SINGAPORE 038987}

^{- OWNED PREMISE}

^{- DATE OF CHANGE OF ADDRESS: 04/12/1997}

^{- SOUTH EAST ASIA REGIONAL HEADQUARTER}

^{OTHER BUSINESS ADDRESSES:}

^{61 SCIENCE PARK ROAD}

^#03-01

^{SINGAPORE 117525}

^{60 WOODLANDS INDUSTRIAL PARK D ST 2}

^{SINGAPORE 738406}

^{8 ANG MO KIO AVE 12}

^{SINGAPORE 569709}

^{YOUR PROVIDED CONTACT NUMBERS:}

^{TEL: 91 22 67917462}

^{FAX: 91 22 67917470}

^{- INCORRECT}

^WEBSITE:

^{http://www.basf.com.sg}

^EMAIL:

^-

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THE REPORT ARE:}

^{1) WOLFGANG HAPKE, A GERMAN}

^{- BASED IN HONG KONG.}

^{2) TILMAN KRAUCH, A GERMAN}

^{- BASED IN HONG KONG.}

^{3) SRINIVASAN REGUNATHAN, AN INDIAN}

^{- BASED IN SINGAPORE.}

^{4) TOM GUSTAV WITZEL, A GERMAN}

^{- BASED IN SINGAPORE.}

^{5) JOHN DUNCAN FASTIER, A NEW ZEALANDER}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{BASF SINGAPORE PTE LTD}

^{6) HERMANN ALTHOFF, A GERMAN}

^{- BASED IN SINGAPORE.}

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 6.1% IN QUARTER 1 OF 2007 AFTER A 6.6% GROWTH IN QUARTER 4 OF 2006. THE GROWTH MOMENTUM EASED SLIGHTLY TO 7.6% IN 1Q 2007, COMPARED WITH 7.9% A QUARTER EARLIER. GROWTH IN QUARTER 1 WAS LED BY THE FINANCIAL SERVICES AND CONSTRUCTION SECTORS. THE MANUFACTURING SECTOR CONTINUED TO EXPERIENCE A MODERATION IN GROWTH.

THE FINANCIAL SERVICES SECTOR SIGNIFICANTLY INCREASED BY 13% IN 1Q 2007 ON THE HEELS OF THE 11% GROWTH A QUARTER AGO. THE STRONG PERFORMANCE WAS ACROSS ALL MAJOR FINANCIAL SEGMENTS, PARTICULARLY IN THE CAPITAL AND MONEY MARKETS. FUND MANAGEMENT ACTIVITIES REMAINED BOUYANT, IN LINE WITH THE CONTINUED STRENGTH IN ECONOMIC CLIMATE. SIMILARLY, BANKS SAW STRONG GROWTH, BOUYED BY SUSTAINED RESILIENCE IN THE ASIA DOLLAR MARKET AS WELL AS A STEADY INCREASE IN DOMESTIC LENDING ACTIVITY.

THE CONSTRUCTION SECTOR GREW BY 9.7% IN 1Q 2007, ITS STRONGEST GROWTH IN 9 YEARS. CERTIFIED PAYMENTS INCREASE BY 9.5% IN 1Q 2007, SUPPORTED BY STRONG GROWTH IN THE PRIVATE RESIDENTIAL, COMMERCIAL AND INDUSTRIAL SEGMENTS AS WELL AS PUBLIC RESIDENTIAL SEGMENT. HOWEVER, CONTRACTS AWARDED FELL BY 11% IN 1Q 2007, DUE MAINLY TO THE DROP IN THE PRIVATE COMMERCIAL AND PUBLIC INSTITUTIONAL SEGMENTS.

MANUFACTURING SECTOR INCREASED BY 4.3% IN 1Q 2007, DOWN FROM 7.7% IN THE PREVIOUS QUARTER. BOTH BIOMEDICAL MANUFACTURING (-5.0%) AND PRECISION ENGINEERING (-0.7%) CLUSTERS SAW LOWER PRODUCTION DURING THE QUARTER. THE ELECTRONICS CLUSTER, HOWEVER, RECOVERED FROM A 4.1% CONTRACTION IN 4Q 2006 TO REGISTER AN INCREASE OF 2.6% IN 1Q 2007. THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO EXPAND STRONGLY AT 23%, FOLLOWING A 25% INCREASE IN 4Q 2006.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.7% IN 1Q 2007 AFTER A 6.9 GROWTH IN 4Q 2006. RETAIL SALES GROWTH EASED FROM 7.9% IN THE PREVIOUS QUARTER TO 6.1% IN 1Q 2007, MAINLY DUE TO A DECELERATION IN MOTOR VEHICLES SALES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.9%, UP FROM 4.2% IN 4Q 2006. IN THE WHOLESALE SEGMENT, GROWTH OF NON-OIL RE-EXPORTS REMAINED FIRM AT 5.9%, SLOWER THAN 6.3% IN 4Q 2006.

THE TRANSPORT AND STORAGE SECTOR GREW 4.4% IN 1Q 2007, UP FROM 4.0% A QUARTER EARLIER. THE AIR SEGMENT SAW A SLOWDOWN DUE TO A MODERATION IN AIR PASSENGER TRAFFIC GROWTH AND A DECLINE IN AIR CARGO. STRONGER ACTIVITY WAS RECORDED IN THE SEA SEGMENT ON THE BACK OF BETTER PERFORMANCE IN SEA CARGO HANDLED AND CONTAINER THROUGHPUT.

THE HOTELS AND RESTAURANTS SECTOR REGISTERED A SLOWER GROWTH OF 4.7% IN 1Q 2007, DOWN FROM 6.1% 4Q 2006. VISITOR ARRIVALS GREW AT A MORE MODEST PACE OF 4.1% COMPARED TO 8.4% IN THE PREVIOUS QUARTER. THE INCREASE IN HOTEL ROOM REVENUE MODERATED FROM THE 21% GAIN IN 4Q 2006 TO 14% IN 1Q 2007. HOWEVER, THE AVERAGE OCCUPANCY RATE OF HOTELS REMAINED HIGH AT 87%, A 4.3% POINTS INCREASE OVER THE CORRESPONDING PERIOD LAST YEAR.

THE INFORMATION AND COMMUNICATIONS SECTOR GREW 6.6% IN 1Q 2007, UP FROM 6.0% IN THE PREVIOUS QUARTER. WHILE THE IT SEGMENT SAW SOME MODERATION IN ACTIVITIES, THE TELECOMMUNICATIONS SEGMENT PERFORMED BETTER. INTERNATIONAL TELEPHONE CALL DURATION WENT UP SHARPLY BY 19%, UP FROM 11% IN 4Q 2006. GROWTH IN THE NUMBER OF MOBILE SUBSCRIBERS AND BROADBAND SUBSCRIBERS ALSO REMAINED STRONG DURING THE QUARTER.

BUSINESS SERVICES SECTOR EXPANDED BY 6.6% IN 1Q 2007, BETTER THAN THE 5.4% POSTED IN 4Q 2006. ROBUST PERFORMANCE WAS SEEN IN THE REAL ESTATE SEGMENT ON THE BACK OF CONTINUED STRENGTH IN THE LUXURY PROPERTY MARKET. THE SECTOR WAS ALSO WELL SUPPORTED BY THE OTHER SEGMENTS, PARTICULARLY BUSINESS REPRESENTATIVE OFFICES, AND BUSINESS & MANAGEMENT CONSULTANCY ACTIVITIES.

OUTLOOK

THE ECONOMIC OUTLOOK IS GENERALLY POSITIVE BUT SOME DOWNSIDE RISKS REMAIN. THESE INCLUDE A SLOWDOWN IN THE US ECONOMY, VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS AND A DISORDERLY UNWINDING OF GLOBAL UNBALANCES. BARRING THESE UNCERTAINTIES, ECONOMIC GROWTH IS EXPECTED TO REMAIN HEALTHY IN 2007.

BUSINESS SENTIMENTS ARE GENERALLY POSITIVE IN THE FINANCIAL SERVICES INDUSTRY. BANKS AND FINANCE COMPANIES, FUND MANAGEMENT FIRMS AND INSURANCE COMPANIES EXPECT AN IMPROVEMENT IN THE BUSINESS CLIMATE IN THE COMING MONTHS.

AN OVERALL NET WEIGHTED BALANCE OF 61% OF FIRMS IN THE REAL ESTATE INDUSTRY EXPECTS BETTER BUSINESS CONDITIONS FOR THE NEXT 6 MONTHS. WITHIN THE INDUSTRY, REAL ESTATE DEVELOPERS AND AGENTS FORESEE BRISK BUSINESS ACTIVITY AHEAD.

MANUFACTURING SECTORS ARE MORE OPTIMISTIC IN THE NEXT 6 MONTHS COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN 7% RECORDED A QUARTER AGO.

WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD AND BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

FIRMS IN THE RETAIL TRADE FORESEE BUSINESS TO BE LESS BRISK. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

WITHIN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS IMPROVED BUSINESS PROSPECTS FOR THE NEXT 6 MONTHS. IN PARTICULAR, FIRMS IN THE WATER TRANSPORT AND SUPPORTING SERVICES EXPECT HIGHER LEVEL OF BUSINESS ACTIVITY.

HOTELIERS PROJECT A FAVOURABLE BUSINESS OUTLOOK, WHICH IS IN TANDEM WITH THE POSITIVE SENTIMENTS IN THE TOURISM MARKET. FOR THE CATERING TRADE INDUSTRY, BUSINESS OUTLOOK IN THE COMING MONTHS REMAINS THE SAME.

FIRMS IN THE INFORMATION AND COMMUNICATION INDUSTRY ANTICIPATES A HIGHER LEVEL OF BUSINESS ACTIVITY, WITH A POSITIVE NET WEIGHTED BALANCE OF 12%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSES POSITIVE SENTIMENTS. THESE INCLUDE FIRM ENGAGED IN RENTING OF CONSTRUCTION & INDUSTRIAL MACHINERY, ARCHITECTURAL & ENGINEERING, SPECIALISED DESIGN AND LABOUR RECRUITMENT SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNELNEWS ASIA

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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