BASF Report 2021 186 Contents Consoli dated To Our Shareholders Management’s Report Corporate Governance Consolidated Financial Statements Financial Overviews 4Statements Statement by the Board of Executive Directors 187 7 Sales revenue 221 24 Risks from litigation and claims 262 Independent Auditor’s Report 188 8 Functional costs 222 25 Other financial obligations 263 Statement of Income 194 9 Other operating income and expenses 223 26 Supplementary information on financial instruments 263 10 Investments accounted for using the equity method 27 Statement of cash flows and capital Statement of Income and Expense Recognized and other financial assets 225 structure management 277 in Equity 195 11 Financial result 230 28 Personnel expenses and employees 279 Balance Sheet 196 12 Income taxes 231 29 Share price-based compensation programs and BASF Statement of Cash Flows 198 13 Noncontrolling interests 235 incentive share program 280 Statement of Changes in Equity 199 14 Intangible assets 236 30 Compensation of the Board of Executive Directors and 15 Property, plant and equipment 240 Supervisory Board 283 Notes 200 16 Leases 244 31 Related party transactions 283 1 Summary of accounting policies 200 17 Inventories 246 32 Services provided by the external auditor 285 2 Scope of consolidation 205 18 Receivables and miscellaneous assets 247 33 Declaration of Conformity with the German Corporate 3 Acquisitions and divestitures 207 19 Capital, reserves and retained earnings 249 Governance Code 285 4 BASF Group list of shares held pursuant to 20 Other comprehensive income 250 34 Non-adjusting events after the balance sheet date 285 section 313(2) of the German Commercial Code (HGB) 213 21 Liabilities 251 5 Reporting by segment and region 213 22 Provisions for pensions and similar obligations 254 6 Earnings per share 220 23 Other provisions 260