WEBVTT

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Dear Shareholders,

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BASF is an integrated company

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with a broad portfolio and a global presence.

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This setup has proved its value –

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especially in these challenging economic times.

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In 2023, we achieved record results

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in our Coatings and Agricultural Solutions divisions,

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which partially offset weak results

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from other segments.

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We remain in a strong financial position.

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We have achieved a strong cash flow

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from operating activities.

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And BASF continues to have a high equity ratio

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and a strong balance sheet.

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We are therefore proposing a dividend of 3.40 euros per share

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to the Annual Shareholders’ Meeting.

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This is on par with the prior year.

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However, our financial strength

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should not distract us from the fact

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that 2023 was economically disappointing.

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The entire chemical industry is in upheaval.

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Geopolitical conflicts,

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a weak economic situation and high interest rates

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due to persistent inflation

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continue to shape developments worldwide.

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As a result, our sales decreased by 21 percent

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and amounted to 68.9 billion euros.

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Our EBIT before special items

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declined to 3.8 billion euros.

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We were unable to offset this significant drop

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even with our consistent cost management.

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That is why we will not ease up on this.

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We are particularly concerned about Europe

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and especially the German market.

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Structurally higher energy prices,

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pronounced weak growth

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and overregulation pose major challenges

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for us here.

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We have ambitious plans for the future.

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We have customers all over the world.

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We will continue to strengthen these relationships.

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And we are convinced

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that we will gain new customers.

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We are constantly expanding our portfolio of products

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with a low carbon footprint.

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We are driving the circular economy.

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We are frontrunners on the path to climate neutrality.

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We are aiming for net-zero CO2 emissions

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for our production and energy procurement by 2050.

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We also intend to significantly reduce

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the greenhouse gas emissions of our purchased raw materials.

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I am excited to see

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how the entire BASF team

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is pulling together to achieve this.

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We are working on our competitiveness,

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profitability and our long-term goal

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of climate neutrality.

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I am certain

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that we will succeed in all of this.

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Because we are a strong company.

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We have the will to change.

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We are rethinking chemistry.