30. Related Party Transactions

Related parties are legal or natural entities that can exert influence on the BASF Group or over which the BASF Group exercises control or joint control, or a significant influence. These primarily include nonconsolidated subsidiaries, joint ventures and associated companies.

The following tables show the volume of business with related parties that are included in the Consolidated Financial Statements at amortized cost or accounted for using the equity method.

Sales and trade accounts receivable from and trade accounts payable to related parties mainly included business with own products and merchandise, agency and licensing businesses, and other operating businesses.

Other receivables and liabilities primarily arose from financing activities, from accounts used for cash pooling, outstanding dividend payments, profit and loss transfer agreements, and other finance-related and operating activities and transactions.

The decrease in other receivables from nonconsolidated subsidiaries as well as the increase from associated companies resulted primarily from other finance-related receivables.

The decline in other liabilities to nonconsolidated subsidiaries as well as associated companies resulted from other finance-related liabilities and contract liabilities.

Balances outstanding to related parties were generally not hedged and were settled in cash.

The balance of valuation allowances on other receivables from nonconsolidated subsidiaries rose from €99 million as of December 31, 2022, to €136 million as of December 31, 2023. The addition to valuation allowances with respect to nonconsolidated subsidiaries was recognized as an expense in the amount of €42 million.

The balance of valuation allowances on trade accounts receivable from nonconsolidated subsidiaries remained equal to the previous year at €3 million as of December 31, 2023; from joint ventures, it declined from €3 million as of December 31, 2022, to €2 million as of December 31, 2023.

BASF had obligations from guarantees and other financial obligations in favor of nonconsolidated subsidiaries in the amount of €15 million as of December 31, 2023, and €8 million as of December 31, 2022, in favor of joint ventures in the amount of €19million as of December 31, 2023, and €39 million as of December 31, 2022, and in favor of associated companies in the amount of €1 million as of December 31, 2023, and likewise €1 million as of December 31, 2022.

Obligations arising from purchase contracts with joint ventures amounted to €3,071 million as of December 31, 2023, and €5 million as of December 31, 2022. The increase was primarily due to power purchase agreements.

Annual minimum rental payments for an office building including a parking area payable by BASF SE to BASF Pensionskasse VVaG for the nonterminable basic rental period until 2029 amounted to €7 million.

BASF SE had other finance-related receivables from BASF Pensionskasse VVaG in the amount of €80 million as of December 31, 2023, and as of December 31, 2022.

There were no reportable related party transactions with members of the Board of Executive Directors or the Supervisory Board and their related parties in 2023.

• For more information on subsidiaries, joint ventures and associated companies, see the 2023 BASF Group list of shares held
• For more information on defined benefit plans, the division of risk between Group companies, see Provisions for pensions and similar obligations
• The Compensation Report is available at basf.com/compensationreport