BASF : Finance Europe N.V. Annual Report 2024

BASF Finance Europe N.V. Arnhem, The Netherlands Annual Report 2024 CONTENTS Page FINANCIAL REPORT

1. Report of the Board of Directors 4

2. Corporate Governance Statement 2024 8

FINANCIAL STATEMENTS

1. Balance sheet as of December 31, 2024 10

2. Profit and loss account for 2024 11

3. Cash flow statement for 2024 12

4. Notes to the financial statements 13

5. Notes to the balance sheet as per December 31, 2024 19

6. Notes to the profit and loss account 2024 26

7. Other disclosure 27

OTHER INFORMATION

1. Provisions of the Articles of Association relating to profit appropriation 29

2. Independent auditor's report 30

FINANCIAL REPORT

1. REPORT OF THE BOARD OF DIRECTORS
   1. Policy, state of affairs and previous expectations

      In accordance with article 5:25c of the Financial Markets Supervision Act (Wet op het financeel toezicht), the Board of Directors confirms that to the best of its knowledge:

      • the annual financial statements give a true and fair view of the assets, liabilities, financial position and profit and loss of the Company;

      • the annual report gives a true and fair view of the position as per December 31, 2024 and the development during the financial year of the Company;

      • the annual report describes the principal risks the Company is facing.

   2. Objectives and core activities

      The objective of the Company is to optimize the financial activities within BASF Group companies in Europe. The core activities of the Company involve the forming of, financing of, participating in, managing of, supervision of and contribution of services to companies, as well as performing commercial, industrial and financial operations.

   3. Corporate structure and staffing

      BASF Finance Europe N.V. (hereinafter: the Company) has its legal address in the Netherlands, Velperplein 23, 6811 AH, Arnhem and is listed under number 09041351 in the Trade Register.

      All amounts are in € x 1,000 or in US$ x 1,000 unless otherwise stated. The Company is a 100% subsidiary of BASF SE, Ludwigshafen, Germany.

      The Company has no employees and receives services through the staff of BASF Nederland B.V.. The Supervisory Board and the Board of Directors are each comprised of three natural persons.

   4. Financial developments

      Net result

      The Company has completed the year with a positive result of € 262 (December 31, 2023: positive result of

      € 165).

      During the reporting period the Company did not use financial derivatives.

      In February 2024 Management decided for an early redemption of Loan 13 (€ 2,000) to BASF Ireland Limited. The amount has been repaid with a small breakage fee in the same month.

      Current ratio

      The current ratio as per December 31, 2024 measured as Current Assets / Current Liabilities amounts to 1.025 (December 31, 2023: 2.047). Change in current ratio is coursed by reclassification loans to Short-Term.

      Solvency ratio

      The solvency ratio as per December 31, 2024 measured as Shareholders' Equity / Balance sheet total amounts to 0.007 (December 31, 2023: 0.009).

      The low solvency ratio results from the high amount of total liabilities. However, due to the fact that financial fixed assets and non-current liabilities have the same duration with a fixed margin, the Company has limited risk with regards to solvency.

      Annual Report 2024 Page 4 of 37

   5. Risks and risk management

      The risk management goal of the Company is to identify and evaluate risks as early as possible and limit business losses by taking appropriate measures, thus avoiding risks that pose a threat to the continuity of the Company.

      Management is currently not aware of any significant risks and uncertainties. Therefore, there are no improvement measures planned. In specific areas with a higher risk for fraud, management has taken separate measures. The payment process has been specifically identified as a process with a potential higher fraud risk. In this area there is a strict focus on Segregation of Duties and access control to the software environment.

      Financial risk

      The management of the daily currency and interest rate risks is conducted in the treasury department of BASF Nederland B.V.. Detailed BASF guidelines and procedures exist for dealing with financial risks.

      Interest risk

      Interest rate risks are the result of changes in prevailing market interest rates, which can cause a change in the present value of fixed-rate instruments, and changes in the interest payments of floating rate instruments. To hedge these risks, the interest rates of the assets and the liabilities have the same base. This will offset the interest rate risk.

      Liquidity risk

      Risks from cash flow fluctuations are recognized in a timely manner as part of the liquidity planning. Uncertainties are taken into account by means of additional risk scenarios and the short-term updating of our liquidity planning. This means we can promptly take the necessary measures when required. The liquidity policy is determined by BASF SE.

      Credit risk

      On a yearly basis, the Company assesses the credit risk for counterparties within the BASF Group where there are loans granted at year-end. So far, the Company has only granted loans to 100% Group companies, which are classified as outstanding counterparties with low credit risk.

      Risks arising, for example, from the war between Russia and Ukraine, and other

      macroeconomic factors are continuously analyzed and management will take measures to reduce the credit risk when possible. So far, there is no significant higher credit risk determined.

      The Company's obligations to third parties on the bond markets are guaranteed by BASF SE, the parent company of the BASF Group.

      Foreign currency risk

      Financial foreign currency risks are the result of the translation of receivables, liabilities and other monetary items. These risks are not hedged by using derivative instruments.

      The Company is exposed to foreign exchange risk on liabilities and receivables denominated in a currency other than Euro, but these related risks are naturally hedged. In general, the Company strives to match foreign exchange risks of its assets and liabilities.

   6. Culture and behaviour - soft controls

Based on international standards, BASF's Compliance Program combines important laws and company internal policies - often exceeding legal requirements - with external voluntary commitments to create a framework that regulates how all BASF employees interact with business partners, officials, colleagues and society.

The core of our Compliance Program is the global, standardized Code of Conduct received by every employee.

Annual Report 2024 Page 5 of 37