1.07 Risk management policy for financial instruments
On September 7, 2007 the Company and BASF SE established their Debt Issuance Program (hereinafter: DIP
or the Program). Under this DIP, the Company or BASF SE may issue one or more notes to a specific number
of banks (so-called: Dealers). As of December 31, 2023, the maximum aggregate principal amount of notes
which can be issued and outstanding under the Program is € 20,000,000. Notes issued by the Company under
the DIP have the benefit of a guarantee provided by BASF SE. Notes will be issued in such denominations as
may be agreed between the issuer and the relevant Dealer and as indicated in the applicable final terms.
Notes issued under the DIP can be listed for trading on the regulated market of the Luxembourg Stock
Exchange.
The DIP prospectus is updated annually.
Current notes overview at nominal value
Date of issuance Interest rate Nominal amount Carrying amount
12/31/2023
November 10, 2016 0.750% € 500,000 € 498,118
June 20, 2018 3.625% US$ 200,000 € 180,821
Total outstanding notes on December 31, 2023 € 678,939
1.08 Application and compliance with codes of conduct
Corporate Governance
The Board of Directors is responsible for the establishment and adequate functioning of internal control in the
Company. Consequently, the Board of Directors has implemented a range of processes designed to provide
control by the Board of Directors over the Company's operations. These processes and procedures include
measures regarding the general control environment as well as specific internal control measures.
All these processes and procedures are aimed at ensuring a reasonable level of assurance that the Company
has identified and managed its significant risks and that it meets the operational and financial objectives in
compliance with applicable laws and regulations.
The Supervisory Board comprises of three persons (one female / two male). The Board of Managing Directors
comprises of three persons, all are male. For future changes of the Boards, the Company aims to take into
account article 2:166, article 2:167 of the Dutch Civil Code and article 3d of the 'Besluit inhoud
Bestuursverslag'.
While the Board of Directors routinely works towards continuous improvement of the processes and
procedures regarding financial reporting, the Board of Directors is of the opinion that, regarding financial
reporting risks, the internal risk management and control systems:
- provide a reasonable level of assurance that the financial reporting in this annual report does not contain
any errors of material importance;
- have worked properly in 2023.
The duty of the Board of Supervisory Directors shall be to supervise the policies of the Board of Directors and
the general course of affairs of the Company and its affiliated business. It shall give advice to the Board of
Directors, asked and un-asked for when performing their duties, the Supervisory Directors shall be guided by
the interests of the Company and its affiliated business.
All employees and managers are obligated to adhere to the global, standardized Code of Conduct (see
www.basf.com), which describe our principles for proper conduct and overall topics ranging from corruption
and antitrust laws to human rights, labor and social standards, conflicts of interest and tradecontrol, and
protection of data privacy. See also "1.06 Culture and behaviour - soft controls".
All employees are required within a predescribed time frame to take part in basic compliance training, refresher
courses and special tutorials dealing with, for example, antitrust legislation or trade control regulations. Despite
the fact that the Company has no staff, the Directors and the members of the Supervisory Board are bound by
the corporate Compliance Program.
BASF Finance Europe N.V.
Arnhem, The Netherlands
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Annual Report 2023
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