BASF Report 2021 Management’s Report – Agricultural Solutions 89 Business review Segment data – Agricultural Solutions Million € At a glance 2021 2020 +/– Sales to third parties 8,162 7,660 6.6% ▪ Sales above prior-year level at €8,162 million due to volume Intersegment transfers 40 91 –56.5% growth and higher prices Sales including transfers 8,202 7,751 5.8% ▪ EBIT before special items of €715 million, 26.3% below 2020 Income from operations before depreciation, amortization and special items 1,375 1,680 –18.2% figure, mainly from higher costs and negative currency effects Income from operations before depreciation and amortization (EBITDA) 1,358 1,582 –14.2% EBITDA margin % 16.6 20.7 − a At €8,162 million, sales to third parties in the Agricultural Solutions Depreciation and amortization 662 1,000 –33.8% segment were €502 million above the prior-year level in 2021. The Income from operations (EBIT) 696 582 19.6% main drivers were higher volumes in all regions and higher prices. Special items –19 –388 95.1% Negative currency effects had an offsetting impact. EBIT before special items 715 970 –26.3% Factors influencing sales – Agricultural Solutions Return on capital employed (ROCE) % 4.5 3.6 − Assets 15,305 14,840 3.1% Volumes 8.1% Investments including acquisitionsb 347 459 –24.3% Prices 2.5% Research and development expenses 904 840 7.7% Portfolio – Currencies –4.0% a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments) b Additions to property, plant and equipment and intangible assets Sales 6.6% In Europe, sales rose by €93 million year on year to €2,128 million. Sales in the region South America, Africa, Middle East amounted Agricultural Solutions – sales This was primarily attributable to higher volumes, especially in fungi- to €1,990 million, €213 million above the previous year, and were By indication and sector cides and herbicides. Slightly higher prices contributed to sales driven by significantly higher price levels and considerable volume €1,641 million performance. Sales were reduced by negative currency effects, growth in all sectors, especially in Brazil. This more than offset €2,449 million Seeds & Traits Fungicides mainly in eastern Europe and Turkey. negative currency effects, especially in Argentina and Brazil. Share of sales: 20% Share of sales: 30% €620 million €8,162 million Sales in North America rose by €81 million to €3,085 million. Higher Seed Treatment sales volumes, especially for herbicides, more than compensated Share of sales: 8% €2,526 million for negative currency effects and slightly lower prices. €926 million Herbicides Insecticides Share of sales: 31% Share of sales: 11% In Asia, we increased sales by €114 million to €958 million. This was mainly due to higher sales volumes, especially in fungicides and insecticides, primarily in China. Slightly higher price levels contrib- uted to the positive sales development, while negative currency effects had a dampening impact.