BASF : in Korea 2021

BASF in Korea

Report 2021

Cover photo:

Engineer measuring the physical properties of resins at the Engineering Plastics Innovation Center located in Ansan

On this page:

Yeosu site engineer team conducting regular safety inspection

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About this report

Index

About this report																				3
BASF Group 2021 at a glance											4
Welcome Letter from the Representative Director								5
BASF in Korea - Executive Committee									6
BASF Group															8
BASF in the regions											14
BASF in Asia Pacific								16
BASF in Korea									18
Key Data of BASF in Korea				23
Ten-Year-Summary of BASF Group				24
Further information			25

About this report

The "BASF in Korea - Report" is published annually as a concise document about the performance of our activities across the three dimensions of sustainability - economy, environment, and society - in Korea. The reporting period for this publication is the financial year 2021. This report also carries an overview of BASF Group along with its financial performance, prepared in accordance with the requirements of the International Financial Reporting Standards (IFRS), and, where applicable, the German Commercial Code as well as the German Accounting Standards (GAS). The emissions, waste, energy and water use of fully consolidated joint ventures are reported on a proportional basis, while those accounted according to the equity method are not included. However, work-related accidents at all sites of BASF Group and its subsidiaries as well as joint operations and joint ventures in which we have sufficient authority in terms of safety management, are compiled regardless of our stake, and reported in full. The employee numbers refer to employees within the BASF Group scope of consolidation as of December 31, 2021.

BASF In Korea Report 2021

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BASF Group 2021 at a glance

1. BASF Group
2. At a glance

Sales	EBIT before special items	ROCE

€78.6 billion

(2020: €59.1 billion)

Greenhouse gas emissions

(million metric tons of CO2 equivalents)

40.1
	21.9	20.8	20.2
1990	2018	2020	2021

€7.8 billion

(2020: €3.6 billion)

Accelerator sales

€24.1 billion

(2020: €16.7 billion)

Research and development expenses

€2.2 billion

(2020: €2.1 billion)

13.5%

(2020: 1.7%)

Employees at year-end

111,047

(2020: 110,302)

Personnel expenses

€11.1 billion

(2020: €10.6 billion)

Segment data

Chemicals					Million €
Sales	2021	13,579
	2020	8,071
EBIT before special items	2021	2,974
	2020	445
Materials					Million €
Sales	2021	15,214
	2020	10,736
EBIT before special items	2021	2,418
	2020	835
Industrial Solutions					Million €
Sales	2021	8,876
	2020	7,644
EBIT before special items	2021	1,006
	2020	822

Surface Technologies			Million €
Sales	2021		22,659
					2020		16,659
EBIT before special items	2021		800
					2020		484
Nutrition & Care			Million €
Sales	2021		6,442
					2020		6,019
EBIT before special items	2021	497
					2020	773
Agricultural Solutions			Million €
Sales	2021		8,162
					2020	7,660
EBIT before special items	2021		715
					2020	970

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Welcome Letter from the Representative Director

Welcome

Letter from the Representative Director

Greetings to our dear and generous supporters of the BASF Group and BASF Korea. I am Dr. David Im, Representative Director of BASF Korea.

Over the year 2021, while the BASF Group achieved successful business performance, major progress was made towards protecting our environment through various means such as lowered CO2 emissions, even with an increased volume in production. Despite challenges of the prolongation of the coronavirus pandemic, supply chain bottle- necks, and an increase in the price of energy and raw materials, BASF has made major breakthroughs with the sustainable accelerator product line and embodied sustainable management based on values seeking not only the economic success, but also environmental protection and social responsibility.

As a leading global chemical company, BASF has set an example in achieving climate neutrality. After the new target of 2050 climate neutrality was announced, the basis for this was set with a 3% decrease in CO2 emission from 2020 despite an increase in production. Since the electrical use of renewable energy is the key for achieving lower CO2 emissions, we plan on securing 100% of our 2021 energy demand from green energy sources by 2030. Additionally, through eco-friendly electricity, low carbon steam, bio-based raw materials, high-efficiency processes, and more, BASF plans to lower its product carbon footprint by vast amounts, and furthermore manufacture net zero products. We will make continuous efforts to reduce the carbon footprint of products for our customers in Korea from almost all industries to help accomplish their own climate neutrality goals.

For BASF, while 2021 has been a year of recovering from difficulties and starting to undertake the challenge of climate neutrality, it has also been a year of achieving amazing business performance. In comparison to 2020, there has been exceptional performance, including sales and profits rising by around 33% and 118% respectively, and improved sales across all business segments. The Chemicals, Materials and Surface Technologies segments have achieved high profits, while

the Industrial Solutions segment has greatly contributed to performance improvement. This is proudly credited to BASF's high-value product line and optimized product portfolio.

Over the last year, BASF in Korea has made various internal and external efforts and innovative accomplishments to develop into a more agile, customer-oriented company. Firstly, by launching a new R&D center, the 'Engineering Plastic Innovation Center (EPIC Korea)' in Ansan, we are able to offer innovative and eco-friendly engineering plastics solutions to our customers across Asia Pacific region faster than ever. Internally, as part of our change management, the 'Future of Work' project has driven innovation and digitalization in workspac- es, establishing a new office environment to better meet customer needs with agility and flexibility.

Owing to all these efforts, BASF in Korea has posted record sales of approximately €1.8 billion in 2021. We will continue to provide customized products and solutions and strive to grow together with our customers. Furthermore, the Ulsan Plastic site celebrates its 40th anniversary and the Yeosu MDI plant celebrates its 30th anniversary this year. We will continue to contribute to position Korea as the heart of high-value product development and its production hub by prioritizing safety while striving for quality.

We ask for your continued support for the journey of BASF in Korea to create chemistry for a sustainable future.

Thank you.

Dr. David Im

Representative Director, BASF Company Ltd.

BASF In Korea Report 2021

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