BASF has been conducting business in Asia Pacific for a long time. The success story began back in 1885 with the trade in textile dyes. Since then, our commitment has grown and diversified steadily. Today, BASF serves nearly all key industries across the region. With further investments in China, we are expanding our excellent position and accelerating BASF’s profitable growth in the world’s largest chemical market. The Asia Pacific region is the main growth driver for the chemical industry and will continue to gain in importance. In 2000, the regions EMEA, North and South America, and Asia Pacific each accounted for about one-third of the global chemical market. By 2030, Asia Pacific will represent around 70 percent of the global chemical market. Member of the Board of Executive Directors, BASF SE Asia Pacific: Powerhouse of the chemical industry Considering this development, BASF is still underrepresented in the fastest growing and largest market of the future. In 2025, Greater China accounted for around 14 percent of BASF’s global sales, but for about 50 percent of the global chemical market. That is why we are investing. 20 percent of our global capex planned for the period 2026 to 2029 will flow into Asia Pacific. We want to continue to support our local customers with strong local production and R&D capabilities. We are strengthening our presence in China and are simultaneously diversifying our investment portfolio with growth projects in India and five ASEAN countries: Indonesia, Malaysia, Singapore, Thailand and Vietnam. We opened a new Verbund site in Zhanjiang, Guangdong province in southern China. Zhanjiang is our third largest Verbund site after Ludwigshafen, Germany, and Antwerp, Belgium. Our approach: Local presence for local markets Our investments are in line with our strategic principles: We invest where we see opportunities to grow and produce where our customers are (local-for-local approach). Our growth projects in China are clearly focused on the Chinese market. We want to gain market share there and contribute to the success of our local and international customers with innovative and sustainable solutions. China continues to offer BASF great opportunities for long-term growth despite current economic uncertainties. For example, by expanding our business with emerging and established Chinese companies, by tapping into new business areas (e.g. in specialty chemicals and low-carbon products) or by participating in the economic upswing of the booming Guangdong region in Southern China with our new Zhanjiang Verbund site. With a strong foothold in Asia, and especially in China, we can compensate for weaker market development in other regions. Our investments improve BASF’s regional diversification by giving more weight to the number one growth market of the future. This strengthens our resilience and accelerates our transformation to net zero, for example, through state-of-the-art manufacturing assets and the extensive use of renewable energy. Furthermore, earnings contributions from China enable the green transformation in other regions where BASF currently does not generate sufficient revenues to finance the necessary investments. We want and need to be strong and to be present in all the key markets: Europe, North and South America, and Asia Pacific. That is why we are investing and strengthening our position in all relevant markets. Therefore, our commitment to China does not mean that we are going to focus on a single market, nor does it mean that we will relocate our operations from Europe to Asia. Our investments: Based on robust analyses of opportunities and risks At BASF, our investment decisions are always based on comprehensive analyses. Besides economic criteria, we also consider environmental, social and geopolitical aspects. We have thoroughly assessed the opportunities and risks of our engagement in China, involving external experts in the process. Our conclusion is that the opportunities for BASF outweigh the risks. As part of our ongoing risk management, we continuously monitor (geo-)political developments, assess different scenarios, and take appropriate measures to mitigate risks and hedge our investments. This also means that we do not make individual investments or take individual risks that could jeopardize the long-term success of the BASF Group. This is also true for our largest investment project, the new Verbund site in Zhanjiang. A clear compass: Corporate values and international standards We are committed to doing business in a responsible, safe, resource-efficient and respectful manner. Our corporate values and our global Code of Conduct serve as our compass. They apply equally to all employees and sites wherever BASF operates. In everything we do, we are committed to upholding internationally recognized principles and standards, such as the Universal Declaration of Human Rights. Within our immediate sphere of influence, we do not accept or tolerate any violation of these internationally recognized principles or our standards. We review our own operations and those of our suppliers for compliance with our standards on a regular, risk-based and systematic basis. Should investigations reveal deviations from our standards, corrective actions are taken within a reasonable timeframe as part of a clearly defined follow-up process. Latest information about BASF in Xinjiang, China Dialogue and collaboration: Basis for solving global challenges We are conce rned about current geopolitical tensions. Isolation, confrontation and bloc building will not help to tackle the great challenges we face today, such as climate change: They can only be solved through global coordination and cooperation – between governments as well as companies, science and society. That is why it is important to maintain dialogue, relationships and collaboration – despite differing political systems. Navigating this complex and changing geopolitical environment is not always ea