In Focus: Research and Development for the Right Balance in Agriculture BASF Report 2021 Management’s Report – In Focus: Research and Development for the Right Balance in Agriculture 91 In focus: Research and Development for the Right Balance in Agriculture For BASF, sustainability begins in research and development. Farmers in particular face major challenges: feeding a growing world population, changing weather conditions due to climate change, and limited natural resources and arable land. Our research and development activities innovate for farmers’ better quality, disease resistance and tolerance of environmental success in strategically relevant crops in major markets around the factors, such as drought. We apply state-of-the-art scientific methods world. They range from seed, biological and chemistry innovations such as genetic engineering and selective genome editing. These to digital solutions that protect plants against fungal diseases, insect biotechnology activities are part of BASF’s Bioscience Research pests and weeds, and improve soil management and plant health. division.1 In 2021, we spent €904 million on research and development in the Agricultural Solutions segment, representing around 11% of the At a glance segment’s sales. By 2031, we will launch major pipeline projects across all business areas. Our well-stocked innovation pipeline has €904 million >€7.5 billion a peak sales potential totaling more than €7.5 billion with products Research and development Peak sales potential of our to be launched between 2021 and 2031. BASF’s solutions help expenses in the Agricultural innovation pipeline with farmers achieve better yield and promote healthy eating, balancing Solutions segment in 2021 products to be launched economic, environment and societal demands. between 2021 and 2031 Our research and development facilities are a global network of research sites, seed production and breeding stations. Proximity to our customers and the crops they grow enables us to seize future market opportunities and increase our competitiveness. Our biotechnology activities and our research and development capabilities comprise advanced breeding techniques, analytics, tech nology platforms and trait validation. To offer tailor-made, more sustainable crop solutions, our research platform on gene identifica- tion focuses on plant characteristics that enable higher yield and 1 Corporate research and development expenses, sales, earnings and all other data for BASF’s Bioscience Research division are not reported in the Agricultural Solutions segment; they continue to be reported under Other.