BASF Report 2021 Consoli dated Financial Statements – Notes 237 Goodwill of cash-generating units Million € 2021 2020 Weighted Weighted cost of capital cost of capital a a Cash-generating unit Goodwill after taxes Growth rate Goodwill after taxes Growth rate Agricultural Solutions division 3,187 5.54% 2.0% 3,039 4.86% 2.0% Catalysts division (excluding battery materials) 1,306 6.63% –0.7% 1,244 6.43% 2.0% Catalysts division (battery materials) 338 6.51% 2.0% 63 6.76% 2.0% Personal Care Ingredients in the Care Chemicals division 507 5.54% 2.0% 493 5.21% 2.0% Surface Treatment in the Coatings division 712 6.67% 2.0% 696 6.42% 2.0% Other cash-generating units 1,470 5.51%–6.67% 0.0–2.0% 1,424 5.21%–6.92% 0.0–2.0% Goodwill as of December 31 7,520 6,959 a Growth rates used in impairment tests to determine terminal values in accordance with IAS 36 The annual impairment tests of the 20 cash-generating units were In 2020, a goodwill impairment for the cash-generating Surface performed in the fourth quarter of 2021. The calculation also takes Treatment unit was recognized in the amount of €786 million in into account capital structure and the beta factor of the respective other expenses due to the significant drop in demand from effects of peer group as well as the average tax rate of each cash-generating the coronavirus pandemic and expectations for slow recovery. The unit. Impairment tests were performed on the units assuming a outcome of the annual impairment test in 2021 was that the weighted average cost of capital rate after taxes of between 5.51% recoverable amount for the cash-generating unit exceeded the and 6.67% (2020: between 4.86% and 6.92%). This corresponds to carrying amount by €408 million. The recoverable amount would be a weighted average cost of capital rate before taxes of between equal to the carrying amount if the weighted average cost of capital 6.53% and 8.94% (2020: between 6.50% and 8.85%). rate rose by 1.05 percentage points or the growth rate were 1.46 percentage points lower. After determining the recoverable amounts for the cash-generating units, the conclusion was that reasonable possible deviations from the key assumptions would not lead to the carrying amount of any unit except the Surface Treatments unit exceeding the respective recoverable amounts.