BASF Report 2021 Management’s Report – Actual Development Compared With Outlook for 2021 67 Actual Development Compared With Outlook for 2021 Sales, earnings and ROCE forecast for the BASF Group Forecast/actual comparison We increased sales to €78.6 billion in 2021, considerably above our Sales EBIT before special items ROCE forecast at the beginning of the year of sales growth to between 2021 forecast 2021 actual 2021 forecast 2021 actual 2021 forecast 2021 actual €61 billion and €64 billion. Sales in the Surface Technologies, Chemicals Chemi cals, Industrial Solutions, Agricultural Solutions and Nutri- Materials tion & Care segments rose more strongly than initially expected. This was driven primarily by significantly higher prices, especially in the Industrial Solutions Surface Technologies and Chemicals segments. We increased sales Surface Technologies volumes as expected. Currency and portfolio effects had an off- setting impact, in line with our assumptions. Nutrition & Care Agricultural Solutions At €7.8 billion, EBIT before special items likewise significantly Other – – exceeded the forecast range of between €4.1 billion and €5.0 billion. The Industrial Solutions, Nutrition & Care and Agricultural Solutions BASF Group €61 billion– €78.6 billion €4.1 billion– €7.8 billion 8.0%–9.2%a 13.5% €64 billiona €5.0 billiona segments in particular did not develop as expected. Industrial Solu- tions increased EBIT before special items considerably, contrary to At prior-year level: no change (+/–0.0%) | Slight increase/decrease: “slight” represents a change of 0.1%–5.0% for sales; 0.1%–10.0% for earnings; 0.1 to 1.0 percentage points for ROCE the forecast of a slight decline. EBIT before special items in the | Considerable increase/decrease: “considerable” represents a change of 5.1% or higher for sales; 10.1% or higher for earnings; more than 1.0 percentage points for ROCE Agricultural Solutions and Nutrition & Care segments declined con- a We updated our outlook in April, July and October 2021. We most recently updated it in October 2021, f orecasting sales of between €76 billion and €78 billion, EBIT before special items of between €7.5 billion and €8.0 billion, and a ROCE of between 13.2% and 14.1%. siderably; in both segments, we had expected a slight improvement in earnings. We considerably increased ROCE in almost all segments. ROCE Accelerator sales and CO emissions forecast for the CO emissions amounted to 20.2 million metric tons, slightly below 2 2 increased only slightly in the Agricultural Solutions segment, while BASF Group the range we forecast in February of between 20.5 million metric the Nutrition & Care segment saw a considerable decline. Overall, tons and 21.5 million metric tons. BASF significantly increased pro- the degree of improvement exceeded our expectations: ROCE for We increased Accelerator sales to €24.1 billion in 2021, consider- duction volumes in 2021 in response to stronger demand. To reduce the BASF Group amounted to 13.5%, considerably above the range ably above the range forecast in February of between €18 billion and the additional emissions resulting from this, we made procuring we had forecast of between 8.0% and 9.2%. €19 billion. The range forecast in October – between €21.5 billion energy from renewable sources a focus. To this end, BASF converted and €22.5 billion – was likewise exceeded. This was due to the energy supply agreements, acquired renewable energy certificates We revised the outlook provided in February 2021 in April, July and BASF Group’s extremely positive business performance, which and signed long-term supply agreements for green power. A project October 2021. In October 2021, we projected sales of between was also reflected in Accelerator sales. The decline caused by the to reduce nitrous oxide emissions in Ludwigshafen, Germany, was €76 billion and €78 billion. We expected EBIT before special items divestiture of the global pigments business and the resulting outflow successfully implemented. Divestitures such as the disposal of the of €7.5 billion to €8.0 billion. For ROCE, we forecast a range of of Accelerator products only had a slight offsetting effect overall. global pigments business led to a slight decline in emissions. In 13.2% to 14.1%. addition, emissions were significantly reduced by the lower capacity utilization of the ammonia plant due to the sharp rise in natural gas prices.