BASF Report 2021 Corporate Governance – Report of the Supervisory Board 182 Independent of the efficiency review of the Supervisory Board, the Audit Committee of the Compensation Report that is to be prepared by the Board of Executive Directors also conducted a self-assessment of its activities in 2021 based on individual discus- and Supervisory Board in accordance with section 162 AktG. sions between the chair of the Audit Committee and all members of the Audit The assurance report issued by KPMG on the substantive audit of the NFS can be found at basf.com/nfs-audit-2021 Committee. Material subjects were the organization and content of meetings, meeting The assurance report issued by KPMG on the audit of the Compensation Report can be found at basf.com/compensationreport documents and reports, participants and quality of discussion at meetings, and the implementation of the recommendations of the 2020 efficiency review. The Audit The auditor’s reports were sent in a timely manner to every member of the Supervisory Committee discussed the results of the questionnaire and detailed suggestions at its Board. The auditor attended the accounts review meeting of the Audit Committee on meeting on December 15, 2021. On this basis, the members judged the Audit February 22, 2022, as well as the accounts meeting of the Supervisory Board on Committee’s work to be efficient and appropriate. February 23, 2022, and reported on the procedure and material findings of its audit, including the key audit matters described in the Auditor’s Report. The auditor also provided the Supervisory Board with detailed explanations of the reports on the day Separate and Consolidated Financial Statements; Compensation Report before the accounts meeting. KPMG AG Wirtschaftsprüfungsgesellschaft, the auditor elected by the Annual Share- The Audit Committee reviewed the Financial Statements, the Management’s Report holders’ Meeting for the 2021 reporting year, has audited the Financial Statements of and the Compensation Report at its meeting on February 22, 2022, including the BASF SE and the BASF Group Consolidated Financial Statements, which were reports prepared by the auditor and the key audit matters specified in the Auditor’s prepared in accordance with the International Financial Reporting Standards (IFRS) as Report, and discussed them in detail with the auditor. The chair of the Audit adopted by the European Union, and the additional requirements that must be applied Committee gave a detailed account of the preliminary review at the Supervisory Board in accordance with section 315e(1) of the German Commercial Code (HGB), including meeting on February 23, 2022. On this basis, the Supervisory Board examined the the Management’s Report and the accounting records from which they were pr epared, Financial Statements and Management’s Report of BASF SE for 2021, the proposal and have approved them free of qualification. Furthermore, the auditor certified that by the Board of Execu tive Directors for the appropriation of profit, and the Con soli- the Board of Executive Directors had taken the measures incumbent on it under dated Financial Statements and Management’s Report for 2021. The results of the section 91(2) of the German Stock Corporation Act (AktG) in an appropriate manner. preliminary review by the Audit Committee and the results of the Supervisory Board’s In particular, it had instituted an appropriate early risk detection system that fulfilled the own examination fully concur with those of the audit. The Supervisory Board sees no requirements of the company and is applicable for the early identification of develop- grounds for objection to the management or the reports submitted. ments that could pose a risk to the continued existence of the BASF Group. The results of the audit as well as the procedure and material findings of the audit of the At its accounts meeting on February 23, 2022, the Supervisory Board approved the financial statements are presented in the Auditor’s Report. Financial Statements of BASF SE and the Consolidated Financial Statements of the The Auditor’s Report is rendered from page 188 onward BASF Group prepared by the Board of Executive Directors, making the 2021 Financial For more information on the auditor, see the Corporate Governance Report on page 170 Statements final. The Supervisory Board concurred with the proposal of the Board of Executive Directors regarding the appropriation of profit and the payment of a dividend Beyond the statutory audit of the Financial Statements, KPMG also conducted, on of €3.40 per share. behalf of the Supervisory Board, a limited assurance of the Nonfinancial Statements (NFSs) for BASF SE and the BASF Group, which are integral parts of the respective Also at the meeting on February 23, 2022, the Supervisory Board discussed with the management’s reports. On the basis of its audit, KPMG did not raise any objections Board of Executive Directors the joint Compensation Report of the Board of Executive to reporting and the satisfaction of the relevant statutory r equirements. Above and Directors and the Supervisory Board in accordance with section 162 AktG and beyond the statutory requirements, the auditor also c onducted a limited assurance approved it. The Compensation Report is publicly available on the company’s website at basf.com/compensationreport