BASF : Factbook

BASF Factbook

Information for investors and analysts

Published May 2024

20 BASF Factbook

24 Information for investors and analysts

Cautionary note regarding forward-looking statements

This publication contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are ­dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. Such risk factors include in particular those discussed in Opportunities and Risks on pages 173 to 183 of the BASF Report 2023. BASF does not assume any obligation to update the forward­-looking statements contained in this publication above and beyond the legal requirements.

Data

Due to rounding, individual figures may not add up exactly to the totals shown and percentages may not correspond exactly to the figures shown.

Drones and digitalization are increasingly used as part of routine maintenance procedures. Courtney Buell, Engineering Associate, and Philip Reyes, Drone & Robotics Special- ist, prepare to inspect a vessel in the carboxy plant at BASF's Verbund site in Geismar, Louisiana. In this way, the need for personnel to enter a confined space is avoided.

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BASF Factbook 2024

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Contents

1 | BASF Group									4	2 | Segments														28	3 | Financials								69
At a Glance											5	Segments																29	BASF on the Capital Market					70
Management									7	Chemicals															32	Business Review by Segment				73
																		Petrochemicals													34
BASF Verbund								9	Intermediates													36	Regional Results							74
Strategy								10	Materials														38	Factors Influencing Sales and Currency Impact			75
Corporate Strategy					10	Performance Materials						40
Our Steering Concept				12	Monomers												42	Financing				76
Targets and Target Achievement			15
Innovation					16	Industrial Solutions						44	Ten-Year Summary			77
Sustainability			17	Dispersions & Resins							46
Portfolio			23	Performance Chemicals					48	Selected Key Figures Excluding Precious Metals		80
Employees		26	Surface Technologies				50
																		Catalysts								52
																		Coatings								54
																		Nutrition & Care					56
																		Care Chemicals						58
																		Nutrition & Health					60
																		Agricultural Solutions			62
																		Agricultural Solutions			64
																		Other			66
																		Non-Integral Shareholding in Wintershall Dea		67

1BASF Group

At a Glance											5
Management									7
BASF Verbund							9
Strategy								10
Corporate Strategy					10
Our Steering Concept				12
Targets and Target Achievement			15
Innovation					16
Sustainability			17
Portfolio			23
Employees		26

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BASF Factbook 2024 At a Glance

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At a Glance

Sales by segment and Other in 2023

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. Around 112,000 employees contribute to the BASF Group's success worldwide. Our business comprises the Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions segments.

With companies in 93 countries

we contribute to our customers' success

Chemicals

€10.4 billion

(2022: €14.9 billion)

Materials

€14.1 billion

(2022: €18.4 billion)

Industrial Solutions

€8.0 billion

(2022: €10.0 billion)

Other

€3.2 billion

(2022: €4.4 billion)

€68.9 billion

(2022: €87.3 billion)

Surface Technologies

€16.2 billion

(2022: €21.3 billion)

Nutrition & Care

€6.9 billion

(2022: €8.1 billion)

Agricultural Solutions

€10.1 billion

(2022: €10.3 billion)

Broad portfolio

6 segments, 11 operating divisions, 70 strategic business units

Verbund concept

for resource-efficient,carbon-optimized and reliable production

BASF sales by industry 2023

Direct customers

> 20%	Chemicals and plastics | Transportation (respectively)
10-20%	Agriculture | Consumer goods (respectively)
< 10%	Construction | Electronics | Energy and resources |
Health and nutrition (respectively)

Key figures

Million €

			2019	2020	2021	2022	2023
Sales			59,316	59,149	78,598		87,327		68,902
Income from operations before depreciation, amortization and special items			8,324	7,435	11,348		10,762		7,671
Income from operations before depreciation and amortization (EBITDA)			8,185	6,494	11,355		10,748		7,180
Income from operations (EBIT) before special items			4,643	3,560	7,768		6,878		3,806
Income from operations (EBIT)			4,201	-191	7,677		6,548		2,240
Net income			8,421	-1,060	5,523		-627	225
Earnings per share (EPS)	€	9.17	-1.15	6.01		-0.70	0.25
Adjusted earnings per share (EPS)	€	4.00	3.21	6.76		6.96		2.78
Cash flows from operating activities			7,474	5,413	7,245		7,709		8,111
Free cash flow			3,650	2,284	3,713		3,333		2,715
EBITDA margin before special items	%		14.0	12.6	14.4		12.3		11.1
Return on capital employed (ROCE)	%		7.7	1.7	13.7		10.0		4.5
Dividend per share	€	3.30	3.30	3.40		3.40		3.40
Dividend yield 1	%		4.90	5.10	5.50		7.33		6.97

1 Based on year-end share price

BASF Factbook 2024 At a Glance

Regional footprint 2023

NORTH AMERICA	Geismar
19.0	Freeport
Sales (billion €)
16,060
Employees

SOUTH AMERICA,

AFRICA, MIDDLE

EAST

5.1

Sales (billion €)

7,176

Employees

The map shows the BASF Group's production sites according to the scope of consolidation as used for the BASF Group Report 2023. Sites not shown on the map ­include pure research and development sites, office and warehouse locations as well as sites of companies outside the scope of consolidation.



Verbund sites / Verbund site under construction

Production sites

Sales by location of company in 2023; employees as of December 31, 2023

EUROPE

27.6

Sales (billion €)

67,562

Employees

Antwerp

Ludwigshafen

6

Nanjing

South Korea

Shanghai

Zhanjiang

Kuantan

ASIA PACIFIC

17.1

Sales (billion €)

21,193

Employees

BASF Factbook 2024 Management

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Management

Board of Executive Directors of BASF SE

Responsibilities as of May 1, 2024

Dr. Markus Kamieth

Chairman of the Board of Executive Directors

53 years old, 25 years at BASF

Responsibilities:

Corporate Development; Corporate Legal, Compliance & Insurance; Senior Project Net Zero Accelerator; Corporate Human Resources; Corporate Communications & Government Relations; Corporate Investor Relations

Anup Kothari

56 years old, 25 years at BASF

Responsibilities:

Dispersions & Resins; Performance Chemicals; Catalysts; Coatings

Dr. Dirk Elvermann	Michael Heinz
Chief Financial Officer	60 years old, 40 years at BASF
and Chief Digital Officer	Responsibilities:
52 years old, 21 years at BASF	Care Chemicals; Nutrition & Health; Agricultural Solutions;
North America; South America
Responsibilities:
Corporate Finance; Corporate Audit; Corporate Taxes &
Duties; Global Business Services;­	Global Digital Services;

Global Procurement; BASF Venture Capital

Dr. Stephan Kothrade	Dr. Katja Scharpwinkel
Chief Technology Officer	Industrial Relations Director
57 years old, 29 years at BASF	54 years old, 13 years at BASF
Responsibilities:	Responsibilities:
Petrochemicals; Intermediates; Performance Materials;	Corporate Environmental Protection, Health, Safety &
Monomers; Group Research; Greater China; South & East	Quality; Global Engineering Services; European Site &
Asia, ASEAN & ANZ; Mega Projects Asia	Verbund Management; Europe, Middle East, Africa

BASF Factbook 2024 Management

Supervisory Board of BASF SE (as of May 1, 2024)

Shareholder representatives

8

Employee representatives

Dr. Kurt Bock Chairman of the Super­ visory Board of BASF SE; Former Chairman of the Board of Executive Directors of BASF SE

Liming Chen

World Economic­ Forum Greater China Chair

Prof. Dr. Stefan

Asenkerschbaumer

Vice Chairman of the

Supervisory­ Board of

BASF SE; Chairman of

the Supervisory Board

of ­Robert Bosch GmbH

and Managing ­Partner

of Robert Bosch

Industrietreuhand KG

Alessandra Genco

Chief Financial Officer

of Leonardo SpA

Prof. Dr.

Thomas Carell

Professor of Organic

Chemistry­ at LMU Munich­

Tamara Weinert

President and Chief Executive Officer of the Business Area Americas and member of the Leadership Team of Outokumpu Corporation

Sinischa Horvat

Vice Chairman of the Super­ visory Board of BASF SE; Chairman of the Works Council of BASF SE, Ludwigs- hafen Site; and Chairman of BASF's Joint Works Council and of the BASF Works Council Europe

Natalie Mühlenfeld District Manager of the Min­ ing, Chemical and Energy Industries Union (IG BCE) for the Düsseldorf district

Tatjana Diether Deputy Chairwoman of the Works Council of BASF SE, Ludwigshafen Site, and member of the BASF Works Council Europe

Michael Vassiliadis

Chairman of the Mining,

Chemical­ and Energy

­Industries Union (IG BCE)

André Matta Member of the Works Council of BASF SE, Ludwigshafen Site, and member of the BASF Works Council Europe

Peter Zaman

Deputy Secretary of the

Works Council of BASF

Antwerpen N.V.

For further information, please refer to basf.com/share/supervisory-board

Two-tier management system of BASF SE		The Supervisory Board works hand in hand with the Board of Exec-
Board of Executive Directors	Supervisory Board	utive Directors to ensure long-term succession planning for the
composition of the Board of Executive Directors. BASF aims to fill
		most Board positions with leaders from within the company. It is the
appoints the Board of Executive Directors		task of the Board of Executive Directors to propose a sufficient
		number of suitable individuals to the Supervisory Board.
monitors the Board of Executive Directors

	advises the Board of Executive Directors
	reports to Supervisory Board
6 members	12 members
appointed by the Supervisory Board	6 shareholder representatives elected by the
Chair	Annual Shareholders' Meeting and
6 employee representatives
appointed by the Supervisory Board
	Chair
	elected by the Supervisory Board

The aim is to enable the Supervisory Board to ensure a reasonable level of diversity with respect to education and professional experi- ence, cultural background, international representation, gender and age when appointing members of the Board of Executive Directors. Irrespective of these individual criteria, a holistic approach will determine a person's suitability for appointment to the Board of Executive Directors of BASF SE.

For more information on the competence profiles, diversity concept and composition goals, see BASF Report 2023, page 193 onward.

BASF Factbook 2024 BASF Verbund

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BASF Verbund

Our unique Verbund concept is one of BASF's greatest strengths. Its driving principle is to add value through the efficient use of resources. At our Verbund sites, production plants, energy and material flows, logistics, and site infrastructure are all integrated.

BASF currently operates six Verbund sites worldwide: two in Europe, two in North America and two in Asia. Our Verbund site in Ludwigshafen, Germany, is the world's largest chemical complex owned by a single company that was developed as an integrated network. We are building a seventh Verbund site in Zhanjiang, in the Chinese province of Guangdong (see page 24).

The Verbund system creates efficient value chains that extend from basic chemicals all the way to industrial and final consumer prod- ucts. In this system, chemical processes make use of energy more efficiently, achieve higher product yields and conserve resources. By-products of one process are used as starting materials for other processes. This saves raw materials and energy, avoids emissions, lowers logistics costs and leverages synergies. BASF operates 228 additional production sites worldwide, but the six Verbund sites produce more than 50% of our volumes. This is a testament to the importance and strength of the Verbund concept within BASF.

BASF Verbund sites worldwide

Antwerp

Second-largest

BASF Verbund site

Established: 1964

Geismar

Established: 1958

Freeport	Kuantan
Established: 1958	BASF 60%
	PETRONAS 40%
	Established: 1997

Ludwigshafen

Largest BASF Verbund site

Established: 1865

Nanjing

BASF 50%

Sinopec 50%

Established: 2000

Zhanjiang

BASF 100% (construction in progress)

Strong sustainability performance

Value chains in integrated Verbund structures can be steered efficiently to conserve resources and reduce CO2 emissions. In 2023, we covered 51% of BASF Group's electricity demand with our own gas and steam turbines in highly efficient combined heat and power plants. Compared with separate generation of steam and electricity, we saved 10.8 million MWh of fossil fuels and avoided 2.2 million metric tons of carbon emissions in 2023.1 In 2023, internally generated power in the BASF Group had a carbon footprint of around

0.26 metric tons of CO2 per MWh of electricity and was below the national grid factor at most BASF sites.

The Verbund system is also key to the carbon-optimized supply of energy at our sites. For example, waste heat from one plant's production process is used as energy in other plants. The Verbund saved us around 17.3 million MWh in 2023, which translates to

1. million metric tons less CO2 released into the atmosphere.1 With combined power and steam generation as well as our continuously optimized Energy Verbund, we were thus able to avoid a total of

1. million metric tons of CO2 emissions in 2023.

Verbund flexibility and adaptability

Despite its complexity, the Production Verbund can respond flexibly to fluctuating demand and changing framework conditions. BASF also has flexibility in adapting its Verbund structures, as demon­ strated by the measures to improve competitiveness of the Lud- wigshafen site that were announced in February 2023. As part of these measures, the following plants were shut down by the end of 2023: the TDI complex, one ammonia plant, the melamine plant and the fertilizer facility. Further shutdowns will be implemented­ gradually­ until the end of 2026.

1 Calculation basis: electricity conversion efficiency of conventional power plants: 45%; steam generation efficiency 90%

BASF Factbook 2024 Strategy

Strategy

Corporate Strategy

Chemistry is our passion. We make use of this passion for our customers: We want to offer them the best possible solutions and help them achieve their sustainability goals. With our products and technologies, our innovative and entrepreneurial spirit and the power of our Verbund integration, we want to grow profitably while creating value for society and the environment. This is our goal, which is embedded in our corporate purpose: We create chemistry for a sustainable future.

Humankind is facing enormous challenges in order to preserve a world worth living in for future generations. The climate is changing, natural resources are becoming scarcer, pressure on ecosystems is increasing and our growing world population needs to be fed. More and more urgently than ever, solutions are needed for a sustainable future. Chemistry plays a key role here. In almost all areas of life, it can pave the way to greater sustainability and accelerate the transformation needed to achieve this. Our innovative products, solutions and technologies help to improve quality of life and protect the environment as well as the climate. We achieve this by using raw materials more efficiently, reducing waste and enabling the production of healthy and affordable food as well as climate-smart mobility.

At the same time, BASF is also undergoing profound changes. We are transforming our company and breaking new ground to increase our profitability and achieve climate neutrality. We are facing up to the challenge of making this change socially just. This involves managing long-term policy decisions like the European Green Deal, overcoming the consequences of current geopolitical conflicts and driving forward digitalization.

At the same time, these challenges also open up numerous opportunities for new business areas and innovative products. All of this requires a clear vision as well as a high degree of creativity and flexi- bility.

We want to grow profitably and sustainably. To this end, we have set ourselves ambitious targets and defined concrete measures to achieve them: To increase our profitability, we are strengthening our competitiveness with our cost savings program focusing on Europe and we are adapting our Verbund structures in Ludwigshafen, Ger- many, to ensure the site remains future-proof. We are investing in growth markets, particularly in Asia, with China as the largest and most important growth driver of global chemical production. Further- more, we are undergoing a fundamental transformation in the way we steer our company. As part of our Differentiated Steering con- cept, we are implementing new financial steering indicators tailored to each business (see page 12). Our operating divisions are also continuing to adapt their specific business models and processes - supported by customized process structures, IT systems and governance frameworks.

To further embed sustainability in our business activities, we are driving innovations for a sustainable future, focusing our portfolio on growth areas, and developing products with a lower carbon footprint. We are pioneers in climate-neutral production. This means we are gradually converting our energy supply from fossil fuels to renewable sources, developing new, pioneering emission-free and low-emission production processes for our products as well as strengthening the circular economy through the use of alternative raw materials and new recycling technologies.

The success of these measures depends primarily on the ideas and commitment of our employees. This is why we want to create an environment in which they can thrive and contribute to BASF's long- term success. Moreover, the diverse potential of digitalization used in our processes and business models further contributes to the successful implementation of these measures.

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Our strategic action areas

BASF's strategic direction is based on a comprehensive analysis of our markets, competitors and the economic environment. We continuously monitor global trends and short-term developments and anticipate the resulting opportunities and risks. In doing so, we keep a close eye on the demands of our customers and the transformation of our company. The following six strategic action areas enable us to strengthen our leading position in a competitive environment.

Innovation

Innovation is the bedrock and driver of our success. BASF is a leader in the chemical industry, with around 10,000 employees in research and development and R&D spending of around €2.1 billion in 2023. We want to further strengthen this position by driving forward our research activities, especially in agriculture, battery materials, polymer technologies and catalytic and biotechnological methods. Our research units are organizationally aligned with the needs of our customers. Customer-focused activities are directly integrated into the divisions. Research activities that are relevant to several operating divisions as well as Group-wide relevant topics are driven by the global division Group Research. In addition, we are pursuing and expanding our cooperations with customers, universities and research institutions.

Sustainability

We believe that the economy, environment and society are inextricably linked and interdependent. In all three areas we want to create value with our products, solutions and technologies. Already in 1994, we pledged our commitment to sustainability and, since then, have systematically aligned our actions with the principles of sus- tainability. We want to further strengthen our position as a pioneer for sustainable solutions. We see sustainability as an integral part of our strategy as well as our targets, steering processes and business models.