BASF Report 2021 Management’s Report – BASF Group 20 BASF Group GRI 102, 201, 202, 203, 301 At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social r esponsibility. Around 111,000 employees contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is divided into the Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions segments. Sites and Verbund The BASF Group’s segments in 2021 BASF has companies in 90 countries. We operate six V erbund sites and 232 additional production sites worldwide. Our Verbund site in Ludwigshafen, Germany, is the world’s largest integrated chemical complex owned by a single company. The Verbund concept was developed and optimized here and later applied to other sites around the world. Construction of the first plants continued at our planned new smart Verbund site in Chemicals Materials Industrial Solutions Zhanjiang, China. The Chemicals segment consists of the Petrochemi- The Materials segment is composed of the Perfor- The Industrial Solutions segment consists of the cals and Intermediates divisions. The segment mance Materials and Monomers divisions. The seg- Dispersions & Resins and the Performance Chemi- supplies BASF’s other segments and third-party ment offers advanced materials and their precursors cals divisions. The segment develops and markets The Verbund system is one of BASF’s great strengths. We add value cus tomers with basic chemicals and intermediates. for the plastics and plastics processing industries. ingredients and additives for industrial applications. by using our resources efficiently. The Production Verbund intelli- ▪ Share of sales: 17% ▪ Share of sales: 19% ▪ Share of sales: 11% gently links production units and their energy supply so that, for ▪ R&D expenses: €97 million ▪ R&D expenses: €193 million ▪ R&D expenses: €175 million 1 1 1 example, the waste heat of one plant provides energy to others. ▪ Investments including acquisitions : €1,157 million ▪ Investments including acquisitions : €709 million ▪ Investments including acquisitions : €361 million Furthermore, one facility’s by-products can serve as feedstocks elsewhere. This not only saves us raw materials and energy – it also avoids emissions, lowers logistics costs and leverages synergies. We also make use of the Verbund principle for more than produc- tion, applying it for technologies, the market and digitalization as well. Expert knowledge is pooled in our global research. For more information on the Verbund concept, see basf.com/en/verbund Surface Technologies Nutrition & Care Agricultural Solutions The Surface Technologies segment comprises the The Nutrition & Care segment comprises the Care The Agricultural Solutions segment is an integrated Catalysts and Coatings divisions. The segment Chemicals division and the Nutrition & Health provider of seeds, crop protection and digital offers chemical solutions for surfaces such as division. The segment produces ingredients and technologies and solutions. battery materi als and automotive coatings. solutions for consumer applications such as nutrition and personal care. ▪ Share of sales: 29% ▪ Share of sales: 8% ▪ Share of sales: 11% ▪ R&D expenses: €296 million ▪ R&D expenses: €172 million ▪ R&D expenses: €904 million 1 1 1 ▪ Investments including acquisitions : €1,469 million ▪ Investments including acquisitions : €654 million ▪ Investments including acquisitions : €347 million 1 Additions to property, plant and equipment and intangible assets