BASF SE

Capital/Financing Update • Oct 17, 2005

News Details

Ad-hoc | 17 October 2005 09:33

BASF AG: BASF establishes CTA for pension obligations

Ad hoc announcement §15 WpHG Strategische Unternehmensplanung BASF AG: BASF establishes CTA for pension obligations Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— BASF establishes CTA for pension obligations ØImproved international comparability of financial reporting ØFinancing of company pensions further developed BASF will transfer about EUR3.7 billion into a CTA (Contractual Trust Arrangement) by the end of 2005 to finance the pension obligations of BASF Aktiengesellschaft. In the future, existing company pension obligations in addition to the BASF Pensionskasse VvaG will also be externally funded. The Supervisory Board approved the proposal by the Board of Executive Directors at its meeting today (17.10.2005). As a result, BASF is improving the international comparability of its financial reporting. Within a CTA, assets are transferred to a trust and are solely used to cover pension obligations. The benefit levels for employees and pensioners of BASF Aktiengesellschaft remain unchanged. BASF will use its high liquidity position to finance the CTA with the necessary assets (funds). The company will still retain its financial strength to further develop its portfolio profitably, as well as continue a shareholder-oriented dividend policy and repurchase shares. BASF AG Carl-Bosch-Straße 38 67056 Ludwigshafen Deutschland ISIN: DE0005151005 (DAX) WKN: 515 100 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; London; Paris End of ad hoc announcement (c)DGAP 17.10.2005 170933 Okt 05