BASF Report 2021 Management’s Report – BASF Group 23 BASF sales by region 2021 BASF sales by industry 2021 Corporate legal structure Location of customer Direct customers 7% As the publicly listed parent company of the BASF Group, BASF SE South America, Africa, > 20% Chemicals and plastics | Transportation (respectively) takes a central position: Directly or indirectly, it holds the shares in Middle East 39% 10%–20% Agriculture | Consumer goods (respectively) the companies belonging to the BASF Group, and is also one of Europe Construction | Electronics | Energy and resources | Health and the largest operating companies. The majority of Group companies €78,598 million < 10% nutrition (respectively) 27% cover a broad spectrum of our business. In the BASF Group Con- Asia Pacific solidated Financial Statements, 258 companies including BASF SE 27% are fully consolidated. We consolidate nine joint operations on a North America Business and competitive environment proportional basis and account for 27 companies using the equity method. BASF’s global presence means that it operates in the context For more information, see Note 2 to the Consolidated Financial Statements from page 205 onward Procurement and sales markets of local, regional and global developments and a wide range of conditions. These include: 1 BASF supplies products and services to around 90,000 customers – Global economic environment from various sectors in almost every country in the world. Our cus- – Legal and political requirements (such as European Union regula- tomer portfolio ranges from major global customers and small and tions) medium-sized enterprises to end consumers. – International trade agreements – Industry standards 2 We work with over 70,000 Tier 1 suppliers worldwide. They supply – Environmental agreements (such as the E.U. Emissions Trading us with important raw materials, chemicals, investment goods and System) consumables, and perform a range of services. Important raw – Social aspects (such as the U.N. Universal Declaration of Human materials (based on volume) include naphtha, liquid gas, natural Rights) gas, benzene and caustic soda. For more information on customers, see page 28 onward; for more information on suppliers, see BASF holds one of the top three market positions in around 80% page 109 onward of the business areas in which it is active. Our most important global competitors include Arkema, Bayer, Clariant, Corteva, Covestro, Dow, Dupont, DSM, Evonik, Huntsman, Lanxess, SABIC, Sinopec, Solvay, Sumitomo Chemical, Syngenta, Wanhua and many hundreds of local and regional competitors. We expect com- petitors from Asia and the Middle East in particular to continue to grow in significance in the years ahead. 1 The number of customers refers to all external companies (sold-to parties) that had contracts with the BASF Group in the business year concerned under which sales were generated. 2 BASF considers all direct suppliers of the BASF Group in the business year concerned as Tier 1 suppliers. These are suppliers that provide us with raw materials, investment goods, consumables and services. Suppliers can be natural persons, companies or legal persons under public law.