BASF Report 2021 Management’s Report – Nutrition & Care 86 Business review Segment data – Nutrition & Care Million € At a glance 2021 2020 +/– Sales to third parties 6,442 6,019 7.0% ▪ Sales growth of €423 million to €6,442 million due to higher of which Care Chemicals 4,439 3,989 11.3% volumes and raised prices Nutrition & Health 2,003 2,030 –1.3% ▪ EBIT before special items declines €276 million to €497 million Intersegment transfers 491 429 14.4% as a result of lower contributions from both divisions Sales including transfers 6,933 6,448 7.5% Income from operations before depreciation, amortization and special items 909 1,190 –23.6% Sales to third parties in the Nutrition & Care segment rose by Income from operations before depreciation and amortization (EBITDA) 967 1,152 –16.0% €423 million year on year to €6,442 million in 2021. This was attri- EBITDA margin % 15.0 19.1 − butable to the Care Chemicals division, which recorded sales growth a Depreciation and amortization 413 464 –10.9% of €450 million to €4,439 million. By contrast, in the Nutrition & Health Income from operations (EBIT) 554 688 –19.5% division, sales declined by €27 million compared with 2020 to Special items 57 –85 . €2,003 million. EBIT before special items 497 773 –35.7% Factors influencing sales – Nutrition & Care Return on capital employed (ROCE) % 8.2 10.6 − Assets 7,231 6,214 16.4% Nutrition & Care Care Chemicals Nutrition & Health Investments including acquisitionsb 654 510 28.3% Volumes 5.7% 6.9% 3.2% Research and development expenses 172 160 7.7% Prices 4.5% 7.4% –1.2% a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments) Portfolio –1.3% –1.2% –1.5% b Additions to property, plant and equipment and intangible assets Currencies –1.9% –1.9% –1.8% Sales 7.0% 11.3% –1.3% home care, industrial and institutional cleaning and industrial Nutrition & Care – sales formulators business, mainly as a result of higher raw materials By division The sales increase at segment level was primarily due to higher prices. This more than compensated for slightly lower prices in the volumes. The Care Chemicals division increased its volumes mainly Nutrition & Health division. in the home care, industrial and institutional cleaning and industrial €4,439 million €2,003 million formulators business and in the personal care solutions business. Slightly negative currency effects, mainly relating to the U.S. dollar, Care Chemicals €6,442 million Nutrition & Health Volumes rose slightly in the Nutrition & Health division, especially in had an offsetting effect. Share of sales: 69% Share of sales: 31% the pharmaceutical and aroma ingredients businesses. This more than compensated for reduced volumes due to the lower availability Portfolio effects from the sale of the production site in Kankakee, of vitamin A. Illinois, had a negative impact on sales in both divisions. Sales were positively impacted by higher prices overall due to signifi- cantly higher price levels in the Care Chemicals division, especially in the oleo surfactants and fatty alcohols business as well as in the