The Leader - September/October 2008 - (Page 68) executIve p r o f Il e Creating Competitive Advantage: Thomas Glatte and Real Estate’s Mandate at BASF BY rIcharD kaDzIs or Thomas Glatte, the BASF credo, “Invisible Contribution, Visible Success,” speaks volumes about the broad impact that corporate real estate (CRE) is having on the world’s largest chemical company. Speaking to LEADER magazine in a recent interview held at the company’s massive production center and corporate base in Ludwigshafen, Germany, Glatte outlined a case for how CRE is quietly but effectively enabling double-digit global growth for the enterprise. BASF reported nearly €€58-billion (US$92 billion) in worldwide sales in 2007, a more than 10-percent increase over 2006. As Head of Corporate Real Estate Management, Glatte oversees a combined portfolio valued at €€2.8-billion (US$4.5 billion) in support of two corporate principles that are making BASF a stand-out company in the global chemical industry: F n n Superior growth opportunities through strong positioning in growth markets, acquisitions in core businesses and excellent innovation platform Sustainable value creation through attractive dividend policy and continuous share buyback program The formula works, as reflected in BASF’s June 2008, 2-for-1 stock split accompanied by a €€3-billion (US$4.8 billion) stock buy-back to increase earnings per share. It’s working for other reasons, too. One is BASF’s ability to leverage its industry, innovation and product line into environmentally and socially responsible impact connoting its “invisible contribution.” The company’s catchy advertising slogan, “We don’t make the products you buy, we make a lot of the products you buy better,” is emblematic of both the huge manufacturing clientele that BASF serves and CRE’s leadership role across the enterprise. “This is all cutting edge,” Glatte comments. “It’s distinguishing us from a lot of other competitors in the field, especially in the developing markets.” There are four key drivers at work within BASF, Glatte explains. Each helps “deliver high-quality products with tailor-made solutions for customers” that are done mostly for manufacturers of consumer goods using BASF products. keY DrIvers The primary driver Glatte lists strongly implies effective CRE asset management as a key ingredient: earning a premium on the cost of capital. Another is the focus on customizing solutions for other manufacturers, reflected in the creative tie of BASF 2 0 0 8 th e le aDe r 68 septemBer / octoBer
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