BASF Report 2021 Management’s Report – Business Models of the Segments 34 compostable bioplastics. This also enables us to meet growing products and technologies in close collaboration with our customers biodegradable products. In this connection, BASF has entered customer needs in all key markets. from the catalysts, coatings and battery materials sectors. We also into partnerships to further strengthen its position in the bio-based offer precious and base metal as well as surface treatment services. surfactants and actives market. One example is the technology Tailor-made service and product offerings enable us to continu- Our aim is to drive growth by leveraging our portfolio of technologies cooperation with Holiferm Ltd, Manchester, United Kingdom. The ously expand the range of applications in our portfolio. We operate to find the best solution for our customers in terms of functionality focus here is on the development of fermentatively accessible close to our customers with our global production network. and cost. This in turn helps our customers to drive forward inno- glycolipids for home and personal care and industrial formulator vation in their industries and contribute to sustainable development. applications. Industrial Solutions Key growth drivers for us are the positive medium-term develop- Our enzymes business enables us to pursue a targeted, accelerated The Industrial Solutions segment markets and develops ingredients ment of the automotive market, especially in Asia, the trend toward marketing strategy and expand our portfolio for natural and bio- and additives for industrial applications. These include fuel and sustainable, low-emission mobility, and the associated rise in technological products. Furthermore, we are investing in natural and lubricant solutions, ingredients for paints and coatings, electronic demand for battery materials for electromobility. Together with biological substances. BASF’s biopharma business supports the materials and plastic additives. We concentrate on research and our customers, we are developing customized, more sustainable biopharmaceutical industry by supplying the raw materials used to development and invest in the creation of innovations with the aim solutions in these growth areas for battery materials, emission con- produce biological drugs. of enabling more efficient resource use. This is why we develop trol, recycling and functional coatings. Our specialties and system more sustainable products and processes, for example, in polymer solutions in these areas enable customers to stand out from their In addition, acquisitions complement our focus on emerging dispersions, resins and plastic additives, and enable our customers competition. markets, new business models and sustainability trends in to contribute to sustainability through their applications and consumer markets. Future growth in our markets will be driven by processes. Other focus areas are efficient production setups, back- The above trends mean that the automotive industry is currently trends like growing consumer awareness and the resulting demand ward integration in our Production Verbund’s value chains, capacity undergoing a fundamental transformation. As one of the largest for sustainable product solutions, natural and organic ingredients management, and technology and cost leadership. chemicals suppliers to this industry, we will, as announced in and their traceability. Moreover, the shift toward individualization December 2021, further strengthen our focus on battery materials and local production supports new players and business models. Our global presence enables us to operate close to our customers and recycling and pursue an ambitious growth plan. We will also Digitali zation, a focused technology and product portfolio, and close and their industries. As a reliable partner, we offer high-quality establish a new entity (BASF Automotive Catalysts and Recycling) cooperation with our customers is crucial to meeting these dynamic products at good value. We work on new solutions together with within the Catalysts division for mobile emissions catalysts, auto- market requirements both now and in the future. our customers and strive for long-term partnerships that create motive catalysts recycling and associated precious metal services. profitable growth opportunities for both parties. To achieve this, The carve-out process started in January 2022. The new organiza- Agricultural Solutions we draw on our innovative strength and our many years of experience tional structure will prepare the business for the upcoming changes and in-depth industry expertise. Through our in-depth application in the internal combustion engine market and allow for future Farming is fundamental given that by 2050, the world’s population is 1 knowledge and technological innovations, we strengthen customer strategic options. expected to increase by two billion people. In the Agricultural Solu- relationships in key industries such as the automotive, plastics and tions segment, we believe that the way forward for agriculture is to electronics industries. Nutrition & Care find the right balance and create value for the environment, society and business. While the demand for food, feed, fiber and energy is Surface Technologies In the Nutrition & Care segment, we strive to expand our position as growing, natural resources are limited. Agriculture is a key enabler a leading provider of nutrition and care ingredients for consumer in providing enough healthy, affordable food and responding to In the Surface Technologies segment, our focus is on the protection, applications. We aim to enhance our capabilities in areas such changing consumer behavior while reducing the impact on the modification and development of surfaces. We develop innovative as biotechnology and broaden our portfolio with bio-based and environment. 1 Source: U.N. World Population Prospects 2019