10. Investments Accounted for Using the Equity Method and Other Financial Assets

Accounting policies

Joint ventures and associated companies are accounted for using the equity method. The carrying amounts of shareholdings are adjusted annually based on the pro rata share of net income, dividends and other changes in equity. Should there be indications of a reduction in the value of an investment, an impairment test is conducted and, if necessary, an impairment is recognized in the income statement. In the case of publicly listed associated companies, share prices are included in the impairment test and form the basis of valuation if there is an indication for permanent impairment or reversal of an impairment. Furthermore, earnings and the carrying amount are adjusted when accounting policies deviate or as a result of purchase price allocations.

10.1. Integral companies accounted for using the equity method

The only material equity-accounted shareholding that is classified as integral is BASF-YPC Company Ltd., Nanjing, China, in which BASF and Sinopec each hold 50%, and which operates the Verbund site in Nanjing.

Income from integral companies accounted for using the equity method decreased by a total of €253 million in 2025. This decline is primarily attributable to the sale of BASF’s 49% stake in the Nordlicht 1 and 2 wind farm projects, which was completed in March 2025. This transaction resulted in a loss of €325 million, which is reflected in the other adjustments to income and expenses for associated companies. The previous year’s figure included impairments of €108 million for these projects.

Proportional changes in other comprehensive income included income and expense recognized directly in equity and related to currency effects as well as to changes in the market values of derivatives.

Changes in the scope of consolidation in 2025 resulted from the inclusion of Mingyang BASF New Energy (Zhanjiang) Co., Ltd., Xuwen, China, which was accounted for using the equity method for the first time. Although BASF holds only 10% of the company, extensive co-determination rights justify significant influence and thus its classification as an associated company.

Additions at joint ventures in 2025 resulted only from capital injections. The divestitures of Markor Meiou Chemical (Xinjiang) Co., Ltd., Korla, China, and Nordlicht Offshore Wind GmbH, Hamburg, Germany, as well as capital reductions at Yara Freeport LLC, Freeport, Texas, led to disposals at associated companies.

The additions in 2024 primarily involved the investment in the associated company Nordlicht Offshore Wind GmbH. The disposals in 2024 resulted mainly from capital reductions at the associated companies Shanghai Lianheng Isocyanate Co. Ltd., Shanghai, China as well as Markor Meiou Chemical (Xinjiang) Co., Ltd., and Yara Freeport LLC.

Transfers in both years primarily included dividend payments from the joint ventures Heesung Catalysts Corporation, Seoul, South Korea, Southeast Texas Pipelines LLC, Houston, Texas, BASF-YPC Company Ltd., N.E. Chemcat Corporation, Tokyo, Japan, and in 2025 additionally a dividend payment from the associated company BASF Huntsman Shanghai Isocyanate Investment B.V., Arnhem, Netherlands.

Additional information on the BASF-YPC Company Ltd. material integral investment accounted for using the equity method

10.2. Non-integral companies accounted for using the equity method

The non-integral companies accounted for using the equity method are exclusively associated companies.

Stahl Lux 2 S.A., Luxembourg (BASF interest: 16.32%), and CIMO Compagnie industrielle de Monthey S.A., Monthey, Switzerland (BASF interest: 15.0%), are classified as associated companies because BASF is represented in the relevant boards and can thus exercise significant influence over the companies.

In both years, income from non-integral companies accounted for using the equity method primarily related to the shareholding in Wintershall Dea GmbH, Kassel, Germany. The increase in income after taxes of Wintershall Dea in 2025 resulted mainly from income for reimbursements under the German federal guarantees that exist for the shareholdings in Russia. In this context, the goodwill of €389 million included in the carrying amount was fully impaired, which is reported under other adjustments to income and expenses. In the previous year, this item included income of €390 million before taxes from the sale of Wintershall Dea’s E&P business to Harbour Energy plc., London, United Kingdom.

As of December 31, 2025, Harbour Energy shares were quoted at £1.97 per share. The market value of BASF’s stake in Harbour Energy was therefore €1,481 million as of the balance sheet date, while the carrying amount was approximately €1,941 million. For this reason, BASF conducted an impairment test on this investment. The determined value in use exceeded the carrying amount, so there was no need to recognize an impairment loss. In addition to assumptions regarding production and cost trends, the valuation was primarily impacted by expected oil and gas prices and discount rates. The latter ranged from 7.4% to 13.2%, depending on country risks. For the oil price (Brent crude), an increase of $5 per barrel in each of the two subsequent years was assumed, starting from $65 per barrel in 2026. For the natural gas price (TTF), however, a downward trend from around €30/MWh in 2026 to €25.6/MWh in 2028 was assumed. For the following years, prices were assumed to remain constant in real terms.

The value in use would have corresponded to the carrying amount if the discount rates had increased by 1 percentage point or if oil prices had decreased by 4% or gas prices by 10% over the entire planning period.

• For more information on Wintershall Dea and Harbour Energy, see Note 3 and the “Annual Report & Accounts” of Harbour Energy plc.

In 2025, proportional changes in other comprehensive income included positive changes in the fair value of derivatives as well as offsetting currency effects, primarily at Harbour Energy.

In 2024, changes in the fair value of derivatives and currency effects at Harbour Energy were also the main reason for changes in other comprehensive income. In addition, as a result of the sale of Wintershall Dea’s E&P business to Harbour Energy, €43 million in currency effects and €2 million in changes in the fair value of derivatives were recognized as expenses in the disposal gain.

Changes in the scope of consolidation and disposals in 2025 resulted from the sale of shares under Harbour Energy’s share buyback program. The company announced the launch of a share buyback program with a volume of up to $100 million on August 7, 2025. BASF participated proportionally to its shareholding in this program during the year 2025, so its stake in Harbour Energy did not change significantly.

The changes in the scope of consolidation and disposals in 2024 particularly related to the disposal of the proportionate carrying amount of the shareholding in Wintershall Dea attributable to the E&P business sold to Harbour Energy.

The additions in the previous year included the shareholding in Harbour Energy at fair value plus directly attributable incidental acquisition costs.

Transfers mainly included dividend payments from Wintershall Dea in both years as well as from Harbour Energy in 2025.

Additional information on the Harbour Energy and Wintershall Dea material non-integral shareholdings accounted for using the equity method

At the time of the preparation of these Consolidated Financial Statements, detailed financial information for Harbour Energy’s 2025 business year was not yet available. For further information, please see the annual financial statements of Harbour Energy, which are scheduled to be published on March 5, 2026.

The following table contains financial information on the Wintershall Dea material non-integral shareholding accounted for using the equity method, including adjustments for fair value made at initial recognition and the resulting effects on earnings.

10.3. Other shareholdings and financial assets

Net income from other shareholdings in 2025 increased year on year by €56 million.