BASF Report 2021 Management’s Report – Chemicals 73 Business review Segment data – Chemicals Million € At a glance 2021 2020 +/– Sales to third parties 13,579 8,071 68.2% ▪ Sales rise 68.2% to €13,579 million, mainly due to higher prices of which Petrochemicals 9,674 5,426 78.3% ▪ EBIT before special items improves by 568.3% to €2,974 million Intermediates 3,904 2,645 47.6% Intersegment transfers 4,269 2,861 49.2% Sales including transfers 17,848 10,932 63.3% At €13,579 million, sales to third parties in the Chemicals segment were €5,508 million above the prior-year figure in 2021. Both divi- Income from operations before depreciation, amortization and special items 3,724 1,305 185.4% sions contributed to the increase with considerable sales growth. Income from operations before depreciation and amortization (EBITDA) 3,764 1,237 204.3% The Petrochemicals division increased sales by €4,248 million to EBITDA margin % 27.7 15.3 − €9,674 million, while sales in the Intermediates division rose by Depreciation and amortizationa 767 1,429 –46.3% €1,259 million to €3,904 million. Income from operations (EBIT) 2,997 –192 . Factors influencing sales – Chemicals Special items 23 –637 . EBIT before special items 2,974 445 568.3% Chemicals Petrochemicals Intermediates Return on capital employed (ROCE) % 32.9 –2.2 − Volumes 9.6% 10.5% 7.9% Assets 10,369 7,896 31.3% Prices 61.2% 71.5% 40.2% Investments including acquisitionsb 1,157 871 32.9% Portfolio –0.7% –1.0% 0.0% Research and development expenses 97 96 1.1% Currencies –1.9% –2.6% –0.4% 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 68.2% 78.3% 47.6% Sales performance was mainly driven by significantly higher price Intermediates division increased volumes primarily in the butanediol Chemicals – sales levels. This was largely due to strong demand alongside low prod- and derivatives business and in the acids and polyalcohols busi- By division uct availability, mainly caused by extreme weather conditions such ness. The amines business in Europe also posted significant volume as Winter Storm Uri in North America, supply chain disruptions, as growth. In the previous year, volume development was significantly well as significantly higher feedstock and energy costs. As a result, weighed down by the impact of the coronavirus pandemic and the €9,674 million €3,904 million the Petrochemicals division increased prices in all business areas, unplanned outage of the steam cracker in Port Arthur, Texas. Petrochemicals €13,579 million Intermediates especially for steam cracker products, styrene monomers and along Share of sales: 71% Share of sales: 29% the entire propylene value chain. The Intermediates division raised Sales growth was curbed by negative currency effects, mainly prices in the butanediol and derivatives business in particular, as relating to the U.S. dollar. well as in the acids and polyalcohols business. Sales development was slightly dampened by portfolio effects in Sales growth was supported by a significant increase in volumes the Petrochemicals division from the disposal of our share in the due to strong demand. Volumes in the Petrochemicals division condensate splitter in Port Arthur, Texas, to Total Petrochemi- grew mainly in steam cracker products and styrene monomers. The cals & Refining USA, Inc.