Letter from the Chairman of the Supervisory Board

Dear Shareholders,

BASF performed well in difficult geopolitical, regulatory and economic conditions in the 2025 business year. The chemical industry is facing major challenges worldwide, particularly in Europe. BASF is focused on further improving its competitiveness in the various markets and on implementing its “Winning Ways” strategy. In these times, extra responsibilities are also placed upon the Supervisory Board.

We have made ongoing and thorough use of detailed reports to monitor the Board of Executive Directors. We advised the Board of Executive Directors on important issues of corporate governance and strategic development. The Board of Executive Directors also informed the Supervisory Board of matters of particular importance outside of the six meetings. In addition, I was in regular personal contact with the Chairman of the Board of Executive Directors. The four committees of the Supervisory Board prepared the meetings and enabled in-depth examination of important topics within the body as a whole. The Audit Committee, whose chairwoman was also in close contact with the Chief Financial Officer and the auditor, bore special responsibility in this regard. Cooperation within the committees and with the Board of Executive Directors has remained transparent, trusting and constructive, characterized by the common pursuit of the best solutions to ensure the success of BASF.

The Supervisory Board discussed the business development and the measures taken by the Board of Executive Directors in detail. At each meeting, we discussed the progress of the major investment projects and the ongoing portfolio measures, including important investments at the Ludwigshafen site, the progress of construction and the highly successful startup of the new Verbund site in Zhanjiang in southern China, as well as the sale of the global coatings business. In relation to the standalone businesses, we discussed the respective progress in strategy implementation, in particular the planned partial IPO of the Agricultural Solutions division. In addition, the continued focus of BASF’s portfolio was intensively discussed. For the core businesses, this means above all growth in Asia and restructuring in Europe. The Supervisory Board is convinced that this will require rapid and far-reaching political reforms in Europe and Germany in order to bring the targets and measures associated with green transformation into line with the growth and prosperity of national economies.

The Supervisory Board believes that BASF is on the right track – both in the short term in a difficult environment and in the long term with a view to greater focus and speed, as well as market-driven green transformation. This assessment is also based on discussions I held with institutional investors last year. The Supervisory Board expressly supports BASF’s chosen operational and strategic direction. Two highly experienced leaders, Dr. Mary Kurian and Dr. Livio Tedeschi, will join the Board of Executive Directors in May 2026 and will contribute their expertise to the further development of BASF. Michael Heinz will retire as planned at the end of the Annual Shareholders’ Meeting – after 42 successful and meritorious years, including 15 years on the Board of Executive Directors.

On behalf of the Supervisory Board, I wish to thank the Board of Executive Directors for its outstanding work in an extraordinarily challenging environment. This thanks also extends to all employees around the world who are making a decisive contribution to BASF’s successful future with their drive, great commitment and resilience.

Dr. Kurt Bock
Chairman of the Supervisory Board

The report of the Supervisory Board can be found here.