BASF Report 2021 Management’s Report – How We Create Value 24 How We Create Value 1 3 Inputs Outputs 2 Business The following overview provides examples of how we create value for our stakeholders. model It is modeled on the framework of the International Integrated Reporting Council (IIRC). 5 4 The content of the graphic has been audited within the scope of the relevant sections of Discover the interactive How We Create Value graphic in the Impact Outcomes the Management’s Report in which they appear. BASF Online Report at basf.com/how-we-create-value Inputs 1 Financial Innovation Operations Environment Employees Partnerships Our aim is to ensure solvency, We develop innovative Safety, quality, and reliability We use natural resources to Everything we do is based Trust-based relationships We use a wide range of limit financial risks and optimize solutions for and with our are key to excellence in our manufacture products and on the expertise, knowledge, are crucial to our license to resources to implement our the cost of capital. customers to expand our production and plant operations. solutions with high value added motivation and conduct of operate and our reputation. customer-focused strategy leading position. for our customers. our employees. €87.4 billion ~10,000 €3.4 billion 1.3 million metric tons 111,047 ~280 Total assets R&D employees Capex Renewable raw materials Employees around the world Research collaborations 3 48.2% €2.2 billion ~60 million MWh 1,695 million m €11.1 billion >70,000 Equity ratio R&D expenses Electricity and steam demand Total water usage Personnel expenses Suppliers Business model 2 Corporate purpose Our targets How we operate We create chemistry ▪ Profitable growth ▪ Our customers are at the core of our strategy. We implement our for a sustainable future ▪ Effective climate protection ▪ Sustainability and innovation is at the center of everything we do and a driver for growth and value. corporate purpose ▪ Product portfolio geared to innovation and sustainability ▪ Safety is always our number one priority. ▪ Responsible procurement ▪ BASF’s Verbund structure is the backbone of our efficient and reliable production. ▪ Resource-efficient and safe production ▪ Our six segments are aligned with value chains and address customer needs with differentiated solutions ▪ Employee engagement and diversity and business strategies. ▪ We have a global, customer-focused presence. ▪ Effective corporate governance ensures responsible conduct. ▪ We value our stakeholders and treat them with respect.