BASF Report 2021 To Our Shareholders – Letter from the Chairman of the Board of Executive Directors 10 China is already the largest chemical market in the world and has high growth potential in the long term. With the construction of our new Verbund site in Zhanjiang in the southern Chinese province of Guangdong, we want to further accelerate our profitable growth in the region. We are setting new standards in energy transformation there as well. By taking advantage of a new regulatory framework and signing a supply agreement for electricity from renewable sources with China » Resources Power in June 2021, we will be able Climate neutrality and to operate the first plants at the new Verbund site in Zhanjiang completely with green power. sustainable resource use Sustainable solutions and innovative products are not possible without a across our entire portfolio enable us to remain on our growth path and systematically drive the competitive chemical transformation to greater sustainability. industry. We act swiftly and systematically in the imple- mentation of our long-term strategy for profitable growth. I am convinced that climate neutrality and sustainable resource use are not possible without a competitive chemical industry. Our company is very well positioned. We make our contribution to society and at the same time, secure our long-term competitiveness. I am pleased that you support us on our path to a sustainable future. Many thanks for your trust. Yours, Martin Brudermüller