BASF : in South America 2023

BASF in

South America

2023 Annual and Sustainability Report

Our Purpose, our values and our innovation power have brought us here and will lead us to a sustainable future.

Key figures

GLOBAL

SOUTH AMERICA

Sales:

€68.9 billion

(2022: €87.3 bilion)

Brazil

€3,712 million

Country Cluster Andes

(Chile, Colombia, Ecuador,

Guianas, Peru e Venezuela)

€414 million

€4,879 million2

Country Cluster Sul

(Argentina, Bolívia, Paraguay and Uruguay)

€753 million

	INVESTMENT IN RESEARCH
111,991	AND DEVELOPMENT:
€2.1 billion
EMPLOYEES:
(2022: 111,481)	(2022: €2.3 billions)

40.1 21.9 18.4 16.9

Greenhouse gas

emissions1

(million metric tonnes

of CO2 equivalent):

1990 2018 2022 2023

1. Scope 1 and Scope 2 (excluding the sale of energy to third parties)
2. By location of customer, consolidated Group, third-party sales
3. Indirect emissions from electricity purchased for the company's own use

2	BASF in South America 2023 Report

SALES BY SEGMENT

Chemicals		Million €	Industrial Solutions		Million €	Nutrition & Care		Million €
Sales	2023	377	Sales	2023	422	Sales	2023	493
	2022	556			2022	490			2022	553
Market Profit	2023	-15	Market Profit	2023	81	Market Profit	2023	79
	2022	113			2022	89			2022	135
Materials		Million €		Surface Technologies		Million €	Agricultural Solutions		Million €
Sales	2023	449	Sales	2023	848	Sales	2023	2.156
	2022	630			2022	881			2022	2.459
Market Profit	2023	74		Market Profit	2023	119	Market Profit	2023	717
	2022	109			2022	60			2022	784

Investment		Brazil €3.95 million
in Social
	Country Cluster Andes €108.2 thousand
Engagement
(Donations, sponsorships and		Country Cluster South €81.6 thousand
BASF Group's own projects)

	Reduction in water	ENVIRONMENTAL RESTORATION (BRAZIL) 2023:
Greenhouse gas	consumption per
emissions	tonne of finished
products South America:
Scope 23
considering	60.3%	12 thousand native
ELECTRICITY:	(52.4% increase in absolute
tree seedlings planted	2 biodiversity
Zero	production volume)
in Guaratinguetá	studies at BASF
2022 and 2023
	(SP, Brazil)	factories

BASF in South America 2023 Report

3

Contents

Contents

Contents

About this report	04
BASF Group 2023 at a Glance	06
Message from the president	07
The BASF Group	09
BASF in South America	19
Purpose, values and innovation power	21
Global corporate commitments	24
Governance and compliance - evolution and challenges	26
Our commitment to society	31
South America's commitment to the SDGs

People - Actions with society

People - Inclusion of diversity

People - Health and wellbeing

About this report

The "BASF in South America" report is published annually as a document on the performance of our activities in the three pillars of sustainability

• economy, environment and society. The reference period for this publication is the 2023 fiscal year. This report also provides an overview of the BASF Group, together 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 the consolidated joint operations are included proportionally, based on our participation. The number of employees

4							BASF in South America 2023 Report

Our People	39
Health and safety	45
Customer at the center	46
Innovation	49
Commitment to the future of the planet	51
Our featured Business units	62
2023 Awards	69
10-year summary	70

refer to the persons employed in the BASF Group as of December 31, 2023. The scope of this report and the main points of focus of our reports are defined from the material topics along the value chain, identified in internal processes of strategic discussion, global and continuous analysis of data and conversations with shareholders.

For more information on our selection of sustainability topics, please see the information on page 22 of the BASF Group Report

BASF in South America 2023 Report							5

BASF Group 2023 at a Glance

BASF Group

2023 - At a glance

Sales

€68.9 billion

(2022: €87.3 billion)

Greenhouse gas emissions1

(million metric tons of CO2 equivalents)

40.1
	21.9	18.4
		16.9
1990	2018	2022	2023

EBIT before special items

€3.8 billion

(2022: €6.9 billion)

EBITDA before special items

€7.7 billion

(2022: €10.8 billion)

Capital expenditures (capex)

€5.2 billion

(2022: €4.1 billion)

ROCE

4.5%

(2022: 10.0%)

Free cash flow

€2.7 billion

(2022: €3.3 billion)

Employees at year-end

111,991

(2022: 111,481)

Research and development expenses Personnel expenses

€2.1 billion	€11.0 billion
(2022: €2.3 billion)	(2022: €11.4 billion)

Segment data

Chemicals		Million €
Sales	2023	10,369
	2022	14,895
EBIT before special items	2023	361
	2022	1,956
Materials		Million €
Sales	2023	14,149
	2022	18,443
EBIT before special items	2023	826
	2022	1,840
Industrial Solutions		Million €
Sales	2023	8,010
	2022	9,992
EBIT before special items	2023	625
	2022	1,091

Surface Technologies		Million €
Sales	2023	16,204
	2022	21,283
EBIT before special items	2023	938
	2022	902
Nutrition & Care		Million €
Sales	2023	6,858
	2022	8,066
EBIT before special items	2023	107
	2022	618
Agricultural Solutions		Million €
Sales	2023	10,092
	2022	10,280
EBIT before special items	2023	1,563
	2022	1,220

1 Scope 1 and Scope 2 (excluding the sale of energy to third parties)

BASF in South America 2023 Report

6

Welcome/Introduction

Welcome/Introduction

Message from the President for BASF South America

2023 was a year of historic financial records in South America with sales of €4,879 million. This is BASF's second best financial result in the region - the first best was in 2022 with a financial result of €5,792 million. In a very challenging environment, the BASF team has worked with dedication, creativity and resilience to achieve this result.

This achievement contributes to partly counterbalance the negative effects on our global financials due to geopolitical tensions between economic blocks, the war in Ukraine, the resulting increases in raw material, energy and natural gas prices, but also inflation and continued pressure from Asian competition in our markets.

Despite the instability created by this scenario, we remain committed to our investments in South America, reinforcing our long-term commitment to the region. With the difficulties of supply and logistics due to the global economic and social scenario, we have localized part of the production. More than 30 products that we used to import from Germany, the United States and China we started to manufacture in South America. In June 2023, we announced the completion of an investment of €6.3 million in a project to integrate the polyamide 6.6 production chain at the Batistini plant (SP, Brazil), resulting in a 15% increase in the polymer's supply capacity for various markets.

Diversity, equity and inclusion are part of BASF's strategy and organizational culture in all internal and external relations.

In 2023, we also continued to evolve our focus on Diversity, Equity and Inclusion, surpassing our targets to create an even more diverse environment with the recruiting of women, black and brown people, and people with disabilities, for example. We have a wealth of ethnicities and cultures in the region, which gives us a very important creative potential that strengthens innovation which is part of our essence.

We emphasize our commitment to the envirionment by driving higher productivity while at the same time protecting the environment. As a result, all of our factories' energy needs for the year were met from renewable sources, documented using I-REC international renewable electricity certification. Besides this topic, we are also exploring the potential of South America regarding renewable raw materials and circularity through chemical and mechanical recycling, as you will see later in this report.

BASF has been innovating since the days of aniline in 1861, and cassette tape in 1966. For 113 years, we have been at the forefront of innovation in South America. We are always on the move, trying to keep up with the changes we see in the world in a creative, open, responsible and entrepreneurial way. We have renewed our portfolio of products and solutions, our way of thinking and doing business, and our practices. We presented the project "Differentiated Steering", which will bring a new way of managing and leading our company in the coming years. We combine the benefits of Verbund, greater business differentiation and the strength of our integrated company.

This will make us faster, more efficient, more competitive and more profitable. Supported by our values, our purpose has guided us to "create chemistry for a sustainable future".

As we look to the future, we are committed to raising awareness of South America's potential - with the creativity of our people and the strength of our biodiversity - to develop green energy and renewable resources. We have many opportunities to grow by capitalizing on the region's green strengths.

We are already identifying opportunities and evaluating the processes and projects we can offer to create value for the company and the society globally. We consider it essential for governments and industries to work together to leverage the region's green potential.

In 2023, we had a deep learning in human rightsissues. We are constantly evolving, aware of the responsibility we have to maintain our pioneering role and leadership in the market. In this report, you will be able to see how we evolved and what we learned during 2023.

Join us on this journey!

Enjoy reading!

Manfredo Rübens

7							BASF in South America 2023 Report

BASF in South America 2023 Report							8

The BASF Group

The BASF Group

The BASF Group

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.

At a glance

111,991	234
Employees around the world	Production sites worldwide

• Six segments with eleven operating divisions
• Verbund structure ensures efficient and reliable production
• High-performanceorganization for greater customer proximity, increased competitiveness and profitable growth
• Over 78,000 customers are at the core of our strategy
• More than 70,000 Tier 1 suppliers

Sites and Verbund

As one of the world's largest chemical companies, BASF is present in 93 countries. We operate 234 production sites worldwide. We laid the foundation for the Verbund concept in Ludwigshafen, Germany, in 1865 - and it remains one of our key strengths to this day. Intelligently linking and steering our Verbund plants creates efficient

• Chemicals: The segment supplies BASF's other segments and customers with basic chemicals and intermediates.
• Materials: The segment offers advanced materials and their precursors for the plastics and plastics processing industries.
• Industrial Solutions: The segment develops and markets ingredients and additives for industrial applications.
• Surface Technologies: This segment provides chemical solutions for surfaces and automotive OEM coatings, as well as battery materials and catalysts.
• Nutrition & Care: The segment produces ingredients and solutions for consumer applications such as human and animal nutrition, cleaning agents and personal care.
• Agricultural Solutions: The segment is an integrated solutions provider of seeds, crop protection and digital solutions for the agricultural sector.

This segment structure enables us to steer our businesses according to market-specific requirements and the competitive environment. We provide a high level of transparency around the results of our segments and show the importance of the Verbund and value chains to our business success. The operating divisions, the service units, the regions, research and development and the corporate center are the cornerstones of the BASF organization. This organizational structure lays the foundation for customer proximity, competitiveness and profitable growth. BASF aims to differentiate its businesses from their competitors to enable BASF to perform even more strongly in an increasingly competitive market environment.

The divisions bear strategic and operational responsibility and are organized according to sectors or products. They manage the 49 global and regional business units and develop strategies for 70 strategic business units.

The Corporate Center supports the Board of Executive Directors in steering the company as a whole. This steering includes central tasks from the following areas: strategy, finance and controlling, law, compliance and insurance, tax, environmental protection, health, safety and quality, human resources, communications, investor relations, corporate audit and the Net Zero Accelerator unit.

Procurement and Sales Markets

BASF supplies products and services more than 78,000 customers1 from various sectors in almost every country in the world. Our customer portfolio ranges from major global customers and small and medium-sized enterprises to end consumers.

We work with over 70,000 Tier 1 suppliers2 worldwide. They supply us with important raw materials, chemicals, investment goods and consumables, and perform a range of services. Important raw materials (based on volume) include naphtha, liquid gas, natural gas, benzene and caustic soda.

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)

Corporate Legal Structure

As the publicly listed parent company of the BASF Group, BASF SE takes a central position: Directly or indirectly, it holds the shares in the companies belonging to the BASF Group and is also one of the largest operating companies. In the BASF Group Consolidated Financial Statements, 260 companies including BASF SE are fully consolidated. We consolidate nine joint operations on a proportional basis and account for 21 companies using the equity method.

For more information on the companies belonging to the BASF Group, see basf.com/en/corporategovernance

value chains - from basic chemicals to high value-added solutions. The Verbund enables us to manage our production in a resource­ efficient, carbon-optimized and reliable way. By-products from one facility are used as feedstocks elsewhere, for example. This saves raw materials and energy, avoids emissions, lowers logistics costs and leverages synergies.

In addition to Ludwigshafen, Germany, BASF operates five other Verbund sites in Antwerp, Belgium; Freeport, Texas; Geismar, Louisiana; Kuantan, Malaysia; and Nanjing, China. Another Verbund site is being built in Zhanjiang in the southern Chinese province of Guangdong. Following the startup of the engineering plastics plant in 2022, a plant for the production of thermoplastic polyurethanes came onstream there in 2023.

Organization of the BASF Group

We steer our six segments along our value chains to address the needs of our customers with differentiated solutions and business strategies.

Five service units provide competitive services for the operating divisions and sites: Global Engineering Services, Global Digital Services, Global Procurement, European Site & Verbund Management and Global Business Services (finance and controlling, human resources, safety, intellectual property, communications, procurement, supply chain and in-house consulting services).

BASF's regional and national companies represent the Group locally and support the growth of the operating divisions with local proximity to customers. For financial reporting purposes, we organize the regional companies into four regions: Europe; North America; Asia Pacific; and South America, Africa and Middle East.

Our specific research and development units are integrated into the divisions, and activities with broad relevance for our businesses are bundled in a research division. This division is globally positioned with research centers in Europe, North America and Asia Pacific. With this setup, we are focusing our research activities even more strongly on our customers and their needs.

Business and Competitive Environment

BASF's global presence means that it operates in the context of various local, regional and global developments. These include:

• Global economic and political environment
• Legal and political requirements
• International trade agreements
• Industry standards
• Environmental agreements (such as the E.U. Emissions Trading System)
• Social aspects (such as the U.N. Universal Declaration of Human Rights)

BASF holds one of the top three market positions in around 80% of the business areas in which it is active. Our most important global competitors include Arkema, Bayer, Celanese, Clariant, Corteva, Covestro, Dow, DSM-Firmenich, Evonik, Huntsman, SABIC, Sinopec, Solvay, Syngenta, Wanhua and many hundreds of local and regional competitors. We expect competitors from Asia and the Middle East in particular to continue to grow in significance in the years ahead.

1. The number of customers refers to all external companies (sold-to parties) that had contracts with the BASF Group in the business year concerned under which sales were generated.
2. BASF considers all direct suppliers of the BASF Group in the business year concerned as Tier 1 suppliers. These are suppliers that provide us with raw materials, investment goods, consumables and services. Suppliers can be natural persons, companies or legal persons under public law.

9							BASF in South America 2023 Report

BASF in South America 2023 Report							10

The BASF Group

The BASF Group

Our Strategy

We want to grow profitably and sustainably. To this end, we have set ourselves ambitious targets and defined concrete measures to achieve

Our Strategic Action Areas

Our Values and Global Standards

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 and, at the same time, create 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. Concurrently, these challenges also open up numerous opportunities for new business areas and innovative products. All of this requires a clear vision, responsible action as well as a high degree of creativity and flexibility.

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, Germany, 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. Furthermore, we are undergoing a fundamental transformation in the way we steer our company. As part of our Differentiated Steering concept, we are implementing new financial steering indicators tailored to each business. 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.

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.

Our six strategic action areas

Innovation, sustainability, production, digitalization, portfolio and employees

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.

We see sustainability as an integral part of our strategy as well as our targets, steering processes and business models. Our approach covers the entire value chain - from the responsible procurement of our raw materials and safety and resource efficiency in production to sustainable solutions for our customers. We are focusing our product portfolio even more strongly on resource efficiency, climate change and energy as well as circular economy. That is why we have updated our Sustainable Solution Steering (TripleS) methodology for steering the product portfolio based on sustainability criteria.

For more information on TripleS see basf.com/en/sustainable-solution-steering

As an international chemical company, we operate in markets and countries with different requirements and conditions. We always follow our corporate values and standards in order to act responsibly and secure our license to operate. By living these values every day, we ensure a culture of respect for our customers, partners and employees.

Together with our Code of Conduct and our global standards, our CORE values lay the foundation for responsible conduct and trustbased relationships with our stakeholders. They define how we want to work together:

• C - creative: We make great products and solutions for our customers. This is why we embrace bold ideas and give them space to grow. We act with optimism and inspire one another.
• O - open: We value diversity, in people, opinions and experience. This is why we foster feedback based on honesty, respect and mutual trust. We learn from setbacks.
• R - responsible: We value the health and safety of people above all else. We make sustainability part of every decision. We are committed to strict compliance and environmental standards.
• E - entrepreneurial: We focus on our customers, as individuals and as a company. We seize opportunities and think ahead. We take ownership and embrace personal accountability.

Our standards are based on, and in some cases, exceed existing laws and regulations and take internationally recognized principles into account. We respect and promote:

Our transformation along the value chain

Our core business is the production and processing of chemicals. Our strength here lies in the Verbund. It opens up numerous synergies and advantages to us, for example in the development and application of new technologies. We are therefore continuing to in-

- The Universal Declaration of Human Rights and the two U.N.
	Human Rights Covenants
-	The 10 principles of the U.N. Global Compact
-	The core labor standards of the ILO and the Tripartite Declaration of

Supply chain

Energy

Renewable energy, low-emission hydrogen, combined heat and power generation

Raw materials

Renewable and recycled raw materials, raw materials based on the use of CO2

Infrastructure

Network expansion and infrastructure for the transportation of hydrogen and CO2

Suppliers

Sustainability evaluations, Supplier CO2 Management Program

Production

Customer-focused production

Minimized transportation routes

Optimized Verbund structures

Efficient value chains

Digitalization and automation

Efficient processes

Operational excellence

Energy and resource- efficient processes

Emission-free steam generation

Electrified processes, energy recovery

Pioneering technologies

Emission-free and low-emission processes

Key technologies: batteries, polymers, biotechnology

Circular economy

New material cycles and recycling technologies

Products

Solutions for a sustainable future

Low-emission, innovative products (pioneers, contributors)

Climate-smart mobility; healthy, affordable food; efficient construction

Business models

Digitalized and circular approaches

Services

Transparency (product carbon footprint, corporate carbon footprint), take-back systems

vest in our Verbund structure. At the same time, we are strengthening our presence in growth regions in order to produce locally for the local markets and thus close to our customers.

We want to leverage the diverse growth potential of digitalization and seize the associated opportunities to the benefit of our customers. To achieve this, we promote digital skills among our employees, cooperate with partners and make digital technologies and ways of working an integral part of our business.

Investments, acquisitions and divestitures play a key role in strengthening our portfolio. Following major acquisitions in recent years, we plan to further develop our portfolio through smaller, bolt-on acquisitions in the future. We are steering our portfolio toward innovation-driven growth areas.

Our employees are key to BASF's success. That is why we believe that it is important to have an inspiring working environment that fosters and develops employees' individual talents and enables them and their teams to perform at their best.

	Principles Concerning Multinational Enterprises and Social Policy
- The OECD Guidelines for Multinational Enterprises
-	The Responsible Care® Global Charter
-	The German Corporate Governance Code

The main guidelines are primarily summarized in our Group regulations on compliance, human rights, labor and social standards and in the Supplier Code of Conduct. We want to ensure that we act in line with the applicable laws and uphold our responsibility to the environment and society with our comprehensive management and monitoring systems.

See basf.com/humanrights for more information on the Policy Statement on Human Rights and a ­comprehensive report on the implementation of due diligence in accordance with the require ments of the National Action Plan developed by the German government, and in accordance with the U.N. Guiding Principles on Business and Human Rights

For more information on the Human Rights Advisory Council, see basf.com/human-rights-council For more information on labor and social standards, see basf.com/labor_social_standards

11							BASF in South America 2023 Report

BASF in South America 2023 Report							12

The BASF Group

Our Targets and Target Achievement 2023

The BASF Group

Our objective is profitable growth with the following targets up to and including 2023: We want to grow sales volumes faster than global chemical production, further increase our profitability, achieve a return on capital employed (ROCE) considerably above the cost of capital percentage and increase the dividend per share every year based on a strong free cash flow or at least maintain it at prior-year level.

In addition, we have set ourselves broad sustainability targets. We want to considerably reduce our CO2 emissions in the coming years. In addition to the targets for reducing our emissions from production (Scope 1) and the purchase of energy (Scope 2),1 we set ourselves a new target for our purchase of raw materials (Scope 3.1)2 in 2023. We have also added Scope 3.1 emissions to our net-zero target for greenhouse gas emissions by 2050.

We want to further improve safety in production and since 2023 we have been reporting according to a new system that focuses on high-severitywork-related accidents and incidents.

We aim to increase the number of women in leadership positions and create a working environment in which our employees feel that they can thrive and perform at their best.

The objective of these targets is to grow profitably, and at the same time, contribute to the United Nations' Sustainable Development Goals (SDGs). We are focusing here on issues that we as a company can influence: especially SDG 2 (Zero hunger), SDG 5 (Gender equality), SDG 6 (Clean water and sanitation), SDG 7 (Affordable and clean energy), SDG 8 (Decent work and economic growth), SDG 12 (Responsible consumption and production) and SDG 13 (Climate action).

Responsible procurement

2023	2025	2023	2025
status	target
89%	90%	status	target
82%	80%
		SDG	SDG

Cover 90% of our relevant spend with	Have 80% of our suppliers improve their
sustainability evaluations by 2025	sustainability performance
	upon reevaluation

Resource-efficient and safe production

Profitable growth

2023

target

2023

2023

>1.7%

target

status

>9%

2023

-8.4%

status

SDG

SDG

4.5%

Most important key performance indicator

Achieve a return on capital employed

Increase sales volumes faster

(ROCE) considerably above the cost of

than global chemical production

capital percentage every year

every year

2023

2023

target

2023

2023

3%-5%

status

target

status

€3.401

>€3.40

-28022.7%

status

SDG

SDG

Increase EBITDA before special

Increase the dividend per share1

items by 3% to 5% per year

every year based on a

strong free cash flow

Effective climate protection

2018

2022

2023 status

2023

2030

1.61

2030 target

21.9

1.583

status

target

million

kg CO /

kg CO2/

1.34

16.9

2

kg raw

metric

16.4

kg raw

materials

kg CO2/

materials

tons

million

million

SDG

kg raw

SDG

metric

metric

materials

tons

tons

Most important key performance indicator

Reduce our absolute CO2 emissions

Reduce our specific CO2 emissions

(Scope 1 and 2) by 25% by 2030

(scope 3.1) by 15% by 2030

(baseline: 2018)1

(baseline: 2022)2

1 Dividend proposed by the Board of Executive Directors

13							BASF in South America 2023 Report

0.3

2023	2030	SDG	2023	2030	SDG
status	target	target
0.05	≤0.10		status	≤0.05
	0.03

Reduce our worldwide high-severity	Reduce our worldwide high-severitywork
process safety incidents per 200,000	process-related injuries per 200,000
working hours to ≤0.10 by 20304	working hours to ≤0.05 by 20304

	2030
	target
2023	100%
status
70%
	SDG
Introduce sustainable water
management at our production sites in
water stress areas and at our
	Verbund sites by 2030
				Reduction targets
Committed employees and diversity			1 Scope 1 and Scope 2 (excluding the sale of
				energy to third parties). The target includes
	2030		2023	greenhouse gases according to the
2023	2023	Greenhouse Gas Protocol, which are
status	target	status	target	converted into CO2 equivalents (CO2e).
	30%		>80%	The baseline year is 2018.
28.4%	79%5	2 Scope 3.1, raw materials excluding battery
				materials, services and technical goods,
				excluding greenhouse gas emissions from
	SDG		SDG	BASF trading business. Future adjustment
		of the baseline in line with the TfS guideline
				possible depending on the availability of
				further primary data. The baseline year is
				2022.
				3 The figure for 2022 was adjusted due to
				increased data availability.
Increase the proportion of women in	More than 80% of our employees feel	4 We updated the safety targets in 2023.
5 We regularly calculate the employee
leadership positions with disciplinary	that at BASF, they can thrive and	engagement level. The most recent survey
was conducted in 2023.
responsibility to 30% by 2030		perform at their best

BASF in South America 2023 Report							14

BASF in the Regions

BASF in the Regions

BASF Group sales 2023: €68,902 million

BASF Group employees 2023: 111,991

Geismar

Freeport

EUROPE	NORTH AMERICA	ASIA PACIFIC	SOUTH AMERICA,
			AFRICA, MIDDLE
			EAST

27.6	19.0	17.1	5.1
Sales (billion €)1	Sales (billion €)1	Sales (billion €)1	Sales (billion €)1
67,562	16,060	21,193	7,176
Employees2	Employees2	Employees2	Employees2

15							BASF in South America 2023 Report

BASF in the Regions

Nanjing

Südkorea

Region Schanghai

Zhanjiang

Kuantan

Antwerpen

Ludwigshafen

The map shows the BASF Group's production sites according to the scope of consolidation for this report. 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

1. In 2023, by location of company
2. At year-end 2023

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BASF on the Capital Market

BASF on the Capital Market

BASF on the

Capital Market

In 2023, stock markets were characterized by a weakening of the global economy. Continued high inflation, higher interest rates and increasing geopolitical tensions led to economic uncertainty and dampened demand in many sectors.

1. divdend at prior-year level of €3.40 per share will be proposed to the Annual Shareholders' Meeting. Based on the year-end share price for 2023, BASF shares offer a high dividend yield of 7.0%.

Long-term performance of BASF shares compared with indexes

Average annual increase with dividends reinvested

2018-2023		1.8%

9.7%

11.1%

10.3%

2013-20230.1%

5.8%

6.4%

7.6%

▪ BASF share ▪ DAX 40 ▪ EURO STOXX 50 ▪ MSCI World Chemicals

Dividend per share

€ per share

				3.20	3.30	3.30	3.40	3.40	3.40
			3.10
		3.00
	2.90
2.80
2014	2015	2016	2017	2018	2019	2020	2021	2022	2023

At a glance

€3.40	7.0%
Dividend per share	Dividend yield based on the

Weighting of BASF shares in important indexes as of December 31, 2023

Proposed Dividend

Employees Becoming Shareholders

(proposal)

year-end share price for 2023

• BASF share price increased by 5.2% in 2023
• Over 900,000 shareholders
• CDP again awards BASF Leadership status

BASF Share Performance

After BASF's share price reached an annual high of €54.04 on February 3, 2023, it initially declined over the year. During the last two months of 2023, the stock market was supported by expectations of future interest rate cuts. BASF shares recovered in line with the overall market and closed the year at €48.78. Share performance

DAX 40	3.6%
EURO STOXX 50	1.4%
MSCI World Chemicals	3.9%

in the course of the year was mainly attributable to the weakening of the economy, continued high inflation, higher interest rates and increasing geopolitical tensions; these led to significant uncertainty on the global markets and dampened demand in many sectors.

Assuming that dividends were reinvested, BASF's share performance increased by 12.9% in 2023. The benchmark indexes of the German and European stock markets - the DAX 40 and the EURO STOXX 50

• rose by 20.3% and 22.2% over the same period, respectively. The global industry index MSCI World Chemicals gained 14.3%.

It is to be proposed to the Annual Shareholders' Meeting that a dividend of €3.40 per share, at the same level as in the previous year, be resolved, and thus €3.0 billion be paid out to the shareholders of BASF SE. With this proposed dividend, BASF shares offer a high dividend yield of 7.0% based on the year-end share price for 2023. BASF is part of the DivDAX share index, which contains the 15 companies with the highest dividend yield in the DAX 40.

Broad Base of International Shareholders

With over 900,000 shareholders, BASF is one of the largest publicly owned companies with a high free float. An analysis of the shareholder structure carried out at the end of 2023 showed that, at around 18% of share capital, the United States and Canada made up the largest regional group of institutional investors. Institutional investors from Germany accounted for around 4%. Institutional investors from the United Kingdom and Ireland hold 8% of BASF

In many countries, we offer share purchase programs that turn our employees into BASF shareholders. In 2023, around 26,700 employees worldwide (2022: around 27,100) participated in the "plus" share program.

BASF - a Sustainable Investment

BASF shares are also attractive for investors looking for chemical companies with a convincing ESG performance (environment, society and governance). In the analyses of leading ESG rating agencies, BASF is often recognized as a benchmark within the chemical industry. They specifically highlight our innovative strength in the development of sustainable products, our risk management and the extensive measures with which BASF addresses key sustainability topics. For example, in the current assessments by the nonprofit organization CDP for the 2023 business year, BASF achieved the score A- in the categories "Climate Change," "Forests" and "Water"

Change in value of an investment in BASF shares in 2023

With dividends reinvested; indexed

130											130
120											120
110											110
100											100
90											90
80											80
70											70
Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec

	BASF share 12.9%		DAX 40 20.3%		EURO STOXX 50 22.2%		MSCI World Chemicals 14.3%

shares, while investors from the rest of Europe hold a further 10% of capital. Approximately 47% of the company's share capital is held by private investors, nearly all of whom reside in Germany. BASF is therefore one of the DAX companies with the largest percentage of private shareholders.

Shareholder structure

By region, rounded

	8%
51%	United Kingdom/Ireland
Germany	10%
	Rest of Europe
	3%
	Rest of world
	10%
	Not identified
	18%
	United States/Canada

and thus achieved Leadership status as in previous years.

Analysts' recommendations

Around 25 financial analysts regularly publish reports on BASF. The latest analyst recommendations for our shares as well as the average target share price ascribed to BASF by analysts can be found online at basf.com/analystestimates.

For more information about the BASF share, seebasf.com/share

For more information on the key sustainability indexes, seebasf.com/sustainabilityindexes For more information on the Investor Update December 2023, seebasf.com/investor-update

17							BASF in South America 2023 Report

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