BASF Finance Europe N.V.
Arnhem, The Netherlands
Annual Report  2025
BASF Finance Europe N.V.
Arnhem, The Netherlands
CONTENTS
  Page
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BASF Finance Europe N.V.
Arnhem, The Netherlands
FINANCIAL REPORT
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BASF Finance Europe N.V.
Arnhem, The Netherlands
1 Report of the board of directors
1.1 Policy, state of affairs and previous expectations
In accordance with article 5:25c of the Financial Markets Supervision Act (Wet op het financeel toezicht),
the Board of Directors confirms that to the best of its knowledge:
– the annual financial statements give a true and fair view of the assets, liabilities, financial position and
profit and loss of the Company;
– the annual report gives a true and fair view of the position as per December 31, 2025 and the
development during the financial year of the Company;
– the annual report describes the principal risks the Company is facing.
1.2 Objectives and core a ctivities
The objective of the Company is to optimize the financial activities within BASF Group companies in
Europe. The core activities of the Company involve the forming of, financing of, participating in, managing
of, supervision of and contribution of services to companies, as well as performing commercial, industrial
and financial operations.
1.3 Corporate structure and staffing
BASF Finance Europe N.V. (hereinafter: the Company) has its legal address in The Netherlands,
Velperplein 23, 6811 AH, Arnhem and is listed under number 9041351 in the Trade Register.
All amounts are in € x 1,000 or in US$ x 1,000 unless otherwise stated. The Company is a 100%
subsidiary of BASF SE, Ludwigshafen, Germany.
The Company has no employees and receives services through the staff of BASF Nederland B.V.
The Supervisory Board and the Board of Directors are each comprised of three natural persons.
In 2025 I.J. Hoekstra resigned as director and I. Tenten was appointed as his successor.
1.4 Financial developments
Net result
The Company has completed the year with a positive result of € 23 (December 31, 2024: positive result of
€ 262).
During the reporting period the Company did not use financial derivatives.
Current ratio
The current ratio as per December 31, 2025 measured as Current Assets / Current Liabilities amounts to
1.009 (December 31, 2024: 1.025). Change in current ratio is caused by reclassification loans to Short-
Term.
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BASF Finance Europe N.V.
Arnhem, The Netherlands
Solvency ratio
The solvency ratio as per  December 31, 2025 measured as Shareholders' Equity / Balance sheet total
amounts to 0.009 (December 31, 2024: 0.007).
The low solvency ratio results from the high amount of total liabilities. However, due to the fact that
financial fixed assets and non-current liabilities have the same duration with a fixed margin, the Company
has limited risk with regards to solvency.
1.5 Risks and risk management
The risk management goal of the Company is to identify and evaluate risks as early as possible and limit
business losses by taking appropriate measures, thus avoiding risks that pose a threat to the continuity of
the Company.
Management is currently not aware of any significant risks and uncertainties. Therefore, there are no
improvement measures planned. In specific areas with a higher risk for fraud, management has taken
separate measures. The payment process has been specifically identified as a process with a potential
higher fraud risk. In this area there is a strict focus on Segregation of Duties and access control to the
software environment.
Financial risk
The management of the daily currency and interest rate risks is conducted in the treasury department of
BASF Nederland B.V. Detailed BASF guidelines and procedures exist for dealing with financial risks.
Interest risk
Interest rate risks are the result of changes in prevailing market interest rates, which can cause a change
in the present value of fixed-rate instruments, and changes in the interest payments of floating rate
instruments. To hedge these risks, the interest rates of the assets and the liabilities have the same base.
This will offset the interest rate risk.
Liquidity risk
Risks from cash flow fluctuations are recognized in a timely manner as part of the liquidity planning.
Uncertainties are taken into account by means of additional risk scenarios and the short-term updating of
our liquidity planning. This means we can promptly take the necessary measures when required. The
liquidity policy is determined by BASF SE.
Credit risk
On a yearly basis, the Company assesses the credit risk for counterparties within the BASF Group where
there are loans granted at year-end. So far, the Company has only granted loans to 100% Group
companies, which are classified as outstanding counterparties with low credit risk. Risks arising, for
example, from the war between Russia and Ukraine, and other macroeconomic factors are continuously
analyzed and management will take measures to reduce the credit risk when possible. So far, there is no
significant higher credit risk determined. The Company's obligations to third parties on the bond markets
are guaranteed by BASF SE, the parent company of the BASF Group.
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BASF Finance Europe N.V.
Arnhem, The Netherlands
Foreign currency risk
Financial foreign currency risks are the result of the translation of receivables, liabilities and other
monetary items. These risks are not hedged by using derivative instruments. The Company is exposed to
foreign exchange risk on liabilities and receivables denominated in a currency other than Euro, but these
related risks are naturally hedged. In general, the Company strives to match foreign exchange risks of its
assets and liabilities.
1.6 Culture and behavior – soft controls
Based on international standards, BASF's Compliance Program combines important laws and company
internal policies - often exceeding legal requirements - with external voluntary commitments to create a
framework that regulates how all BASF employees interact with business partners, officials, colleagues
and society.
The core of our Compliance Program is the global, standardized Code of Conduct received by every
employee.
1.7 Risk management policy for financial instruments
On September 07, 2007, the Company and BASF SE established their Debt Issuance Program
(hereinafter: DIP or the Program). Under this DIP, the Company or  BASF SE may issue one or more
notes to a specific number of banks (so-called: Dealers). As of December 31, 2025, the maximum
aggregate principal amount of notes which can be issued and outstanding under the Program is               
€ 20,000,000. Notes issued by the Company under the DIP have the benefit of a guarantee provided by
BASF SE. Notes will be issued in such denominations as may be agreed between the issuer and the
relevant Dealer and as indicated in the applicable final terms.  Notes issued under the DIP can be listed
for trading on the regulated market of the Luxembourg Stock Exchange.
The DIP prospectus is updated annually.
Current notes overview at nominal value
Date of issuance
Interest rate
Nominal amount
Carrying amount 31/12/2025
11/10/2016
0.75%
€ 500,000
€499,431
Total outstanding notes on December 31, 2025
€499,431
1.8 Application and compliance with codes of conduct
Corporate Governance
The Board of Directors is responsible for the establishment and adequate functioning of internal control in
the Company. Consequently, the Board of Directors has implemented a range of processes designed to
provide control by the Board of Directors over the Company's operations. These processes and
procedures include measures regarding the general control environment as well as specific internal
control measures. All these processes and procedures are aimed at ensuring a reasonable level of
assurance that the Company has identified and managed its significant risks and that it meets the
operational and financial objectives in compliance with applicable laws and regulations.
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BASF Finance Europe N.V.
Arnhem, The Netherlands
The Supervisory Board comprises three persons (one female / two male). The Board of Directors
comprises three persons, all are male. For future changes of the Boards, the Company aims to take into
account article 2: 166, article 2:167 of the Dutch Civil Code and article 3d of the 'Besluit inhoud
Bestuursverslag'.
While the Board of Directors routinely works towards continuous improvement of the processes and
procedures regarding financial reporting, the Board of Directors is of the opinion that, regarding financial
reporting risks, the internal risk management and control systems:
– provide a reasonable level of assurance that the financial reporting in this annual report does not
contain any errors of material importance;
– have worked properly in 2025.
The duty of the Supervisory Board shall be to supervise the policies of the Board of Directors and the
general course of affairs of the Company and its affiliated business. It shall give advice to the Board of
Directors, asked and un-asked for when performing their duties. The Supervisory Board shall be guided
by the interests of the Company and its affiliated business.
All employees and managers are obligated to adhere to the global, standardized Code of Conduct (see
https://www.basf.com), which describes our principles for proper conduct and overall topics ranging from
corruption and antitrust laws to human rights, labor and social standards, conflicts of interest and trade
control, and protection of data privacy. See also 1.6 Culture and behavior – soft controls.
All employees are required within a predescribed time frame to take part in basic compliance training,
refresher courses and special tutorials dealing with, for example, anti-trust legislation or trade control
regulations. Despite the fact that the Company has no staff, the Directors and the members of the
Supervisory Board are bound by the corporate Compliance Program.
Going concern
As part of the preparation of the financial statements, Management assessed the Company's ability to
continue as a going concern for at least 12 months from the date of preparation of the financial
statements. As the outstanding bonds have been guaranteed by BASF SE, the Company has secured the
risk of non-repayment of the outstanding bonds. Furthermore, Management analysed the Financials of
the group companies with outstanding loans and concluded that the risk of non-repayment of the
outstanding loans is low. As there is no indication of circumstances that raise significant doubt,
Management concluded that the Company is able to continue as a going concern.
1.9 Research and development
The Company does not conduct any research and development.
1.10 Future expectations
Outlook for 2026
When new applications for financing will be received during 2026, the Company will decide if, how and
where to issue new notes or to take or provide new loans. The Company does not plan to have
employees for 2026. The Company does not intend to make investments in 2026
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BASF Finance Europe N.V.
Arnhem, The Netherlands
1.11 Additional information about statutory tasks of an audit committee
The Company does not have an audit committee. Article 21a of the "Wet toezicht
accountantsorganisaties" (Wta) offers the (informal) legislator the opportunity to introduce an audit
committee. This was done by decree of July 26, 2008 and applies to "public interest entities", what is
meant by this is defined in Article 1, letter l of the Wta. The Company meets this definition. However,
Article 3(a) of the decree mentions an exemption, which the Company complies with.
Arnhem, The Netherlands, April 21, 2026
BASF Finance Europe N.V.
R. Holtermann (Director)                                              F. Wilhelmi (Director)
I. Tenten (Director)
       
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BASF Finance Europe N.V.
Arnhem, The Netherlands
2 Corporate governance statement 2025
Internal risk management and control systems
The information concerning the Company’s main features of the internal risk management and control
systems relating to the financial reporting process, as required by article 3a sub a of the Decree “Besluit
nadere voorschriften Inhoud Bestuursverslag (Bib)”, can be found in the section of the Report of the
Board of Managing Directors Chapter 1 and is deemed to be included and repeated in this statement.
Arnhem, The Netherlands, April 21, 2026
R. Holtermann (Director)                                              F. Wilhelmi (Director)
I. Tenten (Director)
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BASF Finance Europe N.V.
Arnhem, The Netherlands
FINANCIAL STATEMENTS
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BASF Finance Europe N.V.
Arnhem, The Netherlands
1 BALANCE SHEET AS OF DECEMBER 31, 2025
(before appropriation of the results)
12/31/2025
12/31/2024
€ x 1,000
€ x 1,000
€ x 1,000
€ x 1,000
ASSETS
Financial fixed assets
(1)
–
498,738
CURRENT ASSETS
Other Receivables
(2)
500,495
197,825
Cash and cash equivalents
(3)
4,186
3,894
TOTAL CURRENT ASSETS
504,681
201,720
TOTAL ASSETS
504,681
700,457
SHAREHOLDERS’ EQUITY
(4)
Issued share capital
2,087
2,087
Share premium reserve
2,513
2,513
Other reserves
74
62
Result of the year
23
262
4,697
4,924
LONG-TERM LIABILITIES
(5)
Non-current loans
–
498,771
CURRENT LIABILITIES
(6)
Repayment obligation long-term
debt
499,431
192,451
Taxes and social securities
–
15
Other current liabilities
553
4,296
TOTAL CURRENT
LIABILITIES
499,984
196,762
TOTAL SHAREHOLDERS’
EQUITY AND LIABILITIES
504,681
700,457
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BASF Finance Europe N.V.
Arnhem, The Netherlands
2 PROFIT AND LOSS ACCOUNT FOR 2025
2025
2024
€ x 1,000
€ x 1,000
€ x 1,000
€ x 1,000
Interest and similar income
(7)
11,638
16,111
Interest and similar expenses
(8)
11,308
15,502
Net financial income and
expenses
330
609
General and administrative
expenses
(9)
302
268
Result from ordinary activities 
before tax
28
341
Tax on result from ordinary
activities
(10)
-5
-79
Net result
23
262
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BASF Finance Europe N.V.
Arnhem, The Netherlands
3 CASH FLOW STATEMENT FOR 2025
The cash flow statement has been prepared using the indirect method.
2025
2024
€ x 1,000
€ x 1,000
€ x 1,000
€ x 1,000
Net cash flow from operating activities
Result before taxation (P&L)
28
341
Interest and similar income and Interest
and similar expenses (Note 7&8)
-330
-609
Adjustment effective interest method
17
13
Change in other working capital
23
5
-262
-250
Interest paid
-13,670
-14,800
Interest received
14,558
15,344
Corporate income tax paid
-84
-118
804
426
Net cash flow (used in) / from operating
activities
542
176
Issued Financial Assets
–
–
Repayment Financial Assets
173,686
–
Net cash flow (used in) / from investing
activities
173,686
–
Repayment Loans/Notes
-173,686
-2,000
Dividend payment  (Note 4)
-250
-1,700
Proceeds Loans/Notes
–
–
Net cash flow (used in) / from financing
activities
-173,936
-3,700
Changes in cash & cash equivalents
292
-3,524
The movement in the cash & cash equivalents can be broken down in the
Current account with parent company as follows:
Balance as at January 1  (Note 3)
3,894
7,418
Movement during the financial year
292
-3,524
Balance as at December 31  (Note 3)
4,186
3,894
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BASF Finance Europe N.V.
Arnhem, The Netherlands
4 NOTES TO THE FINANCIAL STATEMENTS
GENERAL
BASF Finance Europe N.V. (the Company) has been established per April 22, 1976. The Company has its
legal address in the The Netherlands, Velperplein 23, 6811 AH, Arnhem and is listed under number
9041351 in the Trade Register.
The financial year is from January 1, 2025 until December 31, 2025.
Activities
The activities of the Company involve the forming of, financing of, participating in, managing of,
supervision of and contribution of services to companies, as well as performing commercial, industrial and
financial operations.
Going concern
As part of the preparation of the financial statements, Management assessed the Company's ability to
continue as a going concern for at least 12 months from the date of preparation of the financial
statements. As the outstanding bonds have been guaranteed by BASF SE, the Company has secured the
risk of non repayment of the outstanding bonds. Furthermore, Management analysed the Financials of the
group companies with outstanding loans and concluded that the risk of non-repayment of the outstanding
loans is low. As there is no indication of circumstances that raise significant doubt, Management
concluded that the Company is able to continue as a going concern.
Ownership
The financial statements of the Company are consolidated in the consolidated financial statements of
BASF SE in Ludwigshafen, Germany, the ultimate parent company, which can be found on the website:
https://www.basf.com. BASF Finance Europe N.V. is a 100% subsidiary of BASF SE, Ludwigshafen,
Germany.
Prior period adjustment
Last year the receivable from current account was included in the published annual report of the
Company as a “receivable from group companies”, but in accordance with Dutch Accounting Standards
(DAS) 228 and DAS 360, for which the definition of cash and cash equivalents was updated, this
receivable from current account should be presented under “Cash and cash equivalent” in the balance
sheet for the full amount. The comparative figures are amended to the current year presentation. This
correction has no impact on result or equity.
GENERAL ACCOUNTING PRINCIPLES FOR THE PREPARATION OF THE
ANNUAL ACCOUNTS
The financial statements have been prepared in accordance with Title 9 Book 2 of the Dutch Civil Code
and the Dutch Accounting Standards.
Valuation of assets and liabilities and determination of the result takes place under the historical cost
convention. Unless presented otherwise at the relevant principle for the specific balance sheet item,
assets and liabilities are presented at nominal value.
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BASF Finance Europe N.V.
Arnhem, The Netherlands
An asset is recognized in the balance sheet when it is probable that the expected future economic
benefits that are attributable to the asset will flow to the entity and the cost of the asset can be measured
reliably. A liability is recognized in the balance sheet when it is expected to result in an outflow of
resources embodying economic benefits and the amount of the obligation can be measured reliably.
An asset or liability that is recognized in the balance sheet, remains on the balance sheet if a transaction
(with respect to the asset or liability) does not lead to a major change in the economic reality with respect
to the asset or liability.
An asset or liability is no longer recognized in the balance sheet when two conditions have been met:
1 substantially all rights to economic benefits have been transferred to a third party; and
2 substantially all risks related to the asset or liability have been transferred to a third party.
Management estimates
The preparation of the financial statements requires the management to form opinions and to make
estimates and assumptions that influence the application of principles and the reported values of assets
and liabilities and of income and expenditure. The actual results may differ from these estimates.
Revisions of estimates are recognized in the period in which the estimate is revised and in future periods
for which the revision has consequences.
The major estimations management made, were regarding the credibility of the counterparties of the loan
receivable and the determination of the fair value of the financial instruments.
Management investigated the credibility of the Group companies who received a loan and concluded
there is no reason for impairment of these loans.
The fair values of the loans represent the clean fair value excluding interest accruals. For the calculation,
discount factors based on secondary market yields (source: Bloomberg) were used to reflect BASF risk.
The fair value of financial instruments other than stated above is close to the carrying amount.
Functional and presentation currency
The Company uses EUR as their functional and presentation currency.
Monetary assets and liabilities denominated in foreign currencies or denominated in a foreign currency
are translated into the functional currency (Euro) at the balance sheet date at the exchange rate applying
on that date. Non-monetary assets and liabilities in foreign currency that are stated at historical cost are
translated into Euro at the applicable exchange rates on the transaction date. Translation gains and
losses are taken to the profit and loss account as income and expenditure.
The Company granted loans to BASF Group companies for the same amount and denominated in the
same currency as the loans issued. As such, except for the applicable margin, foreign currency risks are
passed on to group companies and do not have any impact on the results of the Company.
The balance sheet positions denominated in foreign currencies are translated at the exchange rate on the
balance sheet date. In the profit and loss account foreign currency amounts are translated at monthly
average rates. Foreign exchange gains and losses are included in interest and similar income.
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BASF Finance Europe N.V.
Arnhem, The Netherlands
Financial instruments
Financial instruments are recognized initially at fair value, including discounts/premium and any directly
attributable transaction costs. If instruments are not subsequently measured at fair value with value
changes recognized in the profit and loss account, any directly attributable transaction costs are included
in the initial measurement.
Financial instruments include loans and (other) receivables, cash items, bonds/notes and other financing
commitments. For the principles of primary financial instruments, reference is made to the treatment per
balance sheet item.
The company has no derivative financial instruments embedded in contracts.
After initial recognition, financial instruments are valued in the manner described below.
Financial assets and financial liabilities are recognized in the balance sheet when contractual rights or
obligations arise with respect to that instrument. A financial instrument is no longer included in the balance
sheet if a transaction results in all or almost all rights to economic benefits and all or almost all risks
relating to the position being transferred to a third party. A financial asset and a financial liability are offset
when the entity has a legally enforceable right to set off the financial asset and financial liability and the
company has the firm intention to settle the balance on a net basis, or to settle the asset and the liability
simultaneously.
If there is a transfer of a financial asset that does not qualify for derecognition in the balance sheet, the
transferred asset and the associated liability are not offset.
Determination of Fair Value
A number of accounting principles and disclosures require the determination of fair values, for both
financial and non-financial assets and liabilities. The fair value of financial fixed assets is estimated on the
basis of the expected and/or contractual cash flows. These cash flows are discounted at the market
interest rates as at balance sheet date, including a margin representing the relevant risks involved. If
applicable, detailed information concerning the principles for determining the fair value is included in the
section that specifically relates to the relevant asset or liability.
Translation of assets, liabilities and transactions denominated in foreign currency
Monetary assets and liabilities denominated in foreign currency are translated into the functional currency
(Euro) at the balance sheet date at the exchange rate applying on that date. Non-monetary assets and
liabilities in foreign currency that are stated at historical cost are translated into Euro at the applicable
exchange rates on the transaction date. Translation gains and losses are taken to the profit and loss
account as income and expenditure.
The Company granted loans to BASF Group companies for the same amount and denominated in the
same currency as the notes issued. As such, except for the applicable margin, foreign currency risks are
passed on to Group companies and do not have any impact on the results of the Company.
The balance sheet positions denominated in foreign currency are translated at the exchange rate on the
balance sheet date.
In the profit and loss account foreign currency amounts are translated at monthly average rates. Foreign
exchange gains and losses are included in interest and similar income.
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BASF Finance Europe N.V.
Arnhem, The Netherlands
PRINCIPLES FOR VALUATION OF ASSETS AND LIABILITIES
Financial fixed assets
Financial instruments are initially recognized at fair value, including discount or premium and directly
attributable transaction costs. However, if financial instruments are subsequently measured at fair value
through profit and loss, then directly attributable transaction costs are directly recognized in the profit and
loss account at the initial recognition.
After initial recognition, loans and other financial commitments are carried at amortized cost using the
effective interest rate method. Valuation is at amortised cost minus impairments, if applicable. Interest
income, based on the effective interest rate method, is accounted for under the interest and similar
income from financing activities within the profit and loss account.
Impairment of fixed assets
A financial asset is impaired if there is objective evidence of impairment as a result of one or more events
that occurred after the initial recognition of the asset, with negative impact on the estimated future cash
flows of that asset, which can be estimated reliably.
Objective evidence that financial assets are impaired includes default or delinquency by a debtor,
indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of
borrowers or issuers, indications that a debtor or issuer is approaching bankruptcy, or the disappearance
of an active market for a security.
The entity considers evidence of impairment for financial assets measured at amortized cost, loan and
receivables both individually and on a portfolio basis. All individually significant assets are assessed
individually for impairment. Those individually significant assets found not to be individually impaired and
assets that are not individually significant are then collectively assessed for impairment by grouping
together assets with similar risk characteristics.
In assessing collective impairment, the company uses historical trends of the probability of default, the
timing of collections and the amount of loss incurred, adjusted for management’s judgement as to
whether current economic and credit conditions are such that the actual losses are likely to be greater or
lesser than suggested by historical trends.
A previously recognised impairment loss is reversed if the decrease of the impairment can be related
objectively to an event occurring after the impairment was recognised. The reversal is limited to at most
the amount required to measure the asset at its original amortised cost at the date of reversal had the
impairment not been recognised.
An impairment loss in respect of a financial asset stated at amortised cost is calculated as the difference
between its carrying amount and the present value of the estimated future cash flows discounted at the
asset’s original effective interest rate.
Losses are recognised in the profit and loss account and reflected in an allowance account against loans
and receivables. Interest on the impaired asset continues to be recognised by using the asset's original
effective interest rate.
Annual Report 2025                                                                                                                                                                  Page 18 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
Loans granted, other receivables and cash and cash equivalents
Loans and receivables are initially measured at fair value, including discount or premium and directly
attributable transaction costs.
Loans and receivables are measured after their initial valuation at amortized cost using the effective
interest rate method, less impairment losses. The loans and receivables with a remaining time to maturity
exceeding 12 months are presented as financial fixed assets. Interest income, based on the effective
interest rate method, are accounted for in the interest and similar income within the income statement.
Shareholders' equity
Financial instruments that are designated as equity instruments by virtue of the economic reality are
presented under shareholders' equity. Payments to holders of these instruments are deducted from the
shareholders' equity as part of the profit distribution.
Financial instruments that are designated as a financial liability by virtue of the economic reality are
presented under liabilities. Interest, dividends, income and expenditure with respect to these financial
instruments are recognized in the profit and loss as financial income or expense.
Share premium
Amounts contributed by the shareholder(s) of the Company in excess of the nominal share capital, are
accounted for as share premium. This also includes additional capital contributions by existing
shareholders without the issue of shares or issue of rights to acquire shares of the Company. Costs and
capital taxes associated with the issue of shares that are not capitalized are deducted from the share
premium, after taken into account tax effects. If the share premium is insufficient for such deductions, the
amounts are deducted from retained earnings.
Long-term liabilities
Long-term liabilities and other financial commitments are initially measured at fair value, including
discount or premium and directly attributable transaction costs.                                                           
Long-term and current liabilities and other financial commitments are stated after their initial recognition at
amortized cost on the basis of the effective interest rate method.                                                       
Redemption payments regarding long-term liabilities that are due next year, are presented under current
liabilities.
Notes issued, loans received and other payables
Notes, loans and other financial commitments are initially measured at fair value, including discount or
premium and directly attributable transaction costs.
Notes, loans and other financial commitments are carried after their initial valuation at amortized cost
using the effective interest rate method. The notes and loans with a remaining time to maturity exceeding
12 months are presented as non-current liabilities. Interest expense, based on the effective interest rate
method, is accounted for in the interest and similar charges.
Annual Report 2025                                                                                                                                                                  Page 19 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
PRINCIPLES FOR THE DETERMINATION OF THE RESULT
Determination of the result
Interest income and expenses are accounted for on an accrual basis. Profit is only included when realized
on the balance sheet date. Losses originating before the end of the financial year are taken into account if
they have become known before preparation of the financial statements.
Interest and similar expenses
Interest income is recognized in the profit and loss account on an accrual basis, using the effective
interest rate method. Interest expenses and similar charges are recognized in the period to which they
belong. Premium, discount and redemption premiums are recognized as interest expense in the period to
which they belong. The allocation of these interest expenses and the interest income on the loan is the
effective interest rate that is recognized in the profit and loss account. On the balance sheet, the
amortized value of the debt(s) is recognised (on balance). The amounts of the premium that are not yet
recognised in the profit and loss account and the redemption premiums already recognised in the profit
and loss account, are recognised as an increase in debt(s) to which they relate. Amounts of the discount
that are not yet recognised in the profit and loss account are recognised as a reduction of the debt(s) to
which they relate.
General and administrative expenses
General and administrative expenses are determined on a historical basis and are attributed to the
reporting year to which they relate. They also include the costs of the supporting services in departments
such as accounting, legal, taxes and controlling.
Taxes
Corporate income tax expense comprises current and deferred tax. Corporate income tax expense is
recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in
which case it is recognized in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous
years.
Taxes on income are based on the result in the financial statements, taking into account the permanent
differences between determinations of a result according to the financial statements on the one hand and
according to the fiscal determination of a result on the other. Calculation is based on current tax rate.
PRINCIPLES FOR PREPARATION OF THE CASH FLOW STATEMENT
The cash flow statement is prepared using the indirect method. Cash flows in foreign currency are
translated into Euro using the weighted average exchange rates at the dates of the transactions. The
interest received and paid as well as the income tax are allocated to operating cash flows. Transactions
that do not result in exchange of cash and cash equivalents are not presented in the cash flow statement.
Annual Report 2025                                                                                                                                                                  Page 20 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
5 NOTES TO THE BALANCE SHEET AS PER DECEMBER 31,
2025
ASSETS
1  Financial fixed assets
12/31/2025
12/31/2024
€ x 1,000
€ x 1,000
Loans to Group companies
Loan 20, BASF Antwerpen N.V.
–
498,738
Loan 20, BASF Antwerpen N.V
2025
2024
€ x 1,000
€ x 1,000
Balance as of January 1
498,738
498,073
Amortization of disagio
675
665
Reclassification to receivables from
group companies
-499,413
–
Balance as of December 31
–
498,738
Cumulative amortization of disagio as of December 31, 2025 amounts to € 5,798 (December 31, 2024   
€ 5,123).
This loan has been issued on November 10, 2016 to BASF Group company BASF Antwerpen N.V. for a
total amount of € 500,000 less disagio of € 6,385 and a term of 10 years. The nominal interest rate
amounts to 0.750% per annum plus the applicable spread of 0.680% per annum. The yield interest 2025
amounts to 1.569%. The loan shall be repaid in full on 10 November 2026.
Annual Report 2025                                                                                                                                                                  Page 21 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
CURRENT ASSETS
2  Other receivables
12/31/2025
12/31/2024
€ x 1,000
€ x 1,000
Receivables from Group companies
500,432
197,825
Taxes and social securities
63
–
500,495
197,825
Receivables from Group companies
12/31/2025
12/31/2024
€ x 1,000
€ x 1,000
Interest receivable from Group companies
1,019
5,375
Short-term portion Loan 20, BASF Antwerpen N.V.
499,413
–
Short-term portion Loan 22, BASF Nederland B.V.
–
192,450
500,432
197,825
Taxes and social securities
12/31/2025
12/31/2024
€ x 1,000
€ x 1,000
Corporate income tax
63
–
This loan has been issued on November 10, 2016 to BASF Group company BASF Antwerpen N.V. for a
total amount of € 500,000 less disagio of € 6,385 and a term of 10 years. The nominal interest rate
amounts to 0.750% per annum plus the applicable spread of 0.680% per annum. The yield interest 2025
amounts to 1.569%. The loan shall be repaid in full on 10 November 2026.
The receivables from Group companies and other receivables are due within one year.
3  Cash and cash equivalents
12/31/2025
12/31/2024
€ x 1,000
€ x 1,000
Current account with parent company
4,186
3,894
The Company has a current account with BASF SE. The interest rate for overnight money investments
based on (for EUR-countries) ESTR plus a debtor spread.
Annual Report 2025                                                                                                                                                                  Page 22 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
EQUITY AND LIABILITIES
4  SHAREHOLDERS' EQUITY
Issued share capital
Ordinary Shares
€ x 1,000
Carrying amount as of January 1, 2024
2,087
Carrying amount as of  December 31, 2024
2,087
Balance as of  January 1, 2025
2,087
Balance as of  December 31, 2025
2,087
Authorized share capital (x € 1,-), consists of ordinary shares
2,086,875
Ordinary shares issued
46,375
Nominal value per ordinary share (x € 1,-)
45
2025
2024
€ x 1,000
€ x 1,000
Share premium reserve
Balance as of January 1
2,513
2,513
Balance as of December 31
2,513
2,513
The share premium concerns the income from the issuing of shares in so far as this exceeds the nominal
value of the shares (above par income).
2025
2024
€ x 1,000
€ x 1,000
Other reserves
Balance as of January 1
62
1,597
Result prior year appropriation
262
165
Paid dividend
-250
-1,700
Balance as of December 31
74
62
Result of the year
Balance as of January 1
262
165
Result prior year appropriation
-262
-165
Result of the year
23
262
Balance as of December 31
23
262
Annual Report 2025                                                                                                                                                                  Page 23 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
5  LONG-TERM LIABILITIES
12/31/2025
12/31/2024
€ x 1,000
€ x 1,000
Non-current loans
Note 20, 0.75% EUR bond 2016-2026
–
498,771
2025
2024
Note 20, 0.75% EUR bond 2016-2026
€ x 1,000
€ x 1,000
Balance as of January 1
498,771
498,118
Amortization of disagio
660
653
Reclassification to current liabilities
-499,431
–
Balance as of December 31
–
498,771
Cumulative amortization of disagio as of December 31, 2025 amounts to € 5,816 (December 31, 2024   
€ 5,156).
On 10 November 2016 the Company issued notes for a total amount of € 500,000 less a disagio and
bank fees of € 6,385 through the banking group. The notes will be repaid in full on 10 November 2026.
The interest amounts to 0.750% per annum (effective interest 0.884% per annum) and is paid annually.
BASF SE is the  guarantor for these notes.
6  CURRENT LIABILITIES
12/31/2025
12/31/2024
Repayment obligation long-term debt
€ x 1,000
€ x 1,000
Note 20, 0.75% EUR bond 2016-2026
–
192,451
Note 22 3.625% USD bond 2018-2025,
private placement
499,431
–
499,431
192,451
On November 10, 2016 the Company issued notes for a total amount of € 500,000 less a disagio and
bank fees of € 6,385 through the banking group. The notes will be repaid in full on 10 November 2026.
The interest amounts to 0.750% per annum (effective interest 0.884% per annum) and is paid annually.
BASF SE is the  guarantor for these notes.
Taxes and social securities
12/31/2025
12/31/2024
€ x 1,000
€ x 1,000
Corporate income tax
–
15
Other current liabilities
12/31/2025
12/31/2024
€ x 1,000
€ x 1,000
Accruals and deferred income
553
4,296
The current liabilities are all due within one year.
Annual Report 2025                                                                                                                                                                  Page 24 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
CONTINGENT LIABILITIES AND COMMITMENTS
The company does not have contingent liabilities and commitments in the current year and in the previous
year.
FINANCIAL INSTRUMENTS
General
During the normal course of business, the Company uses various financial instruments that expose the
Company to market, credit and liquidity risks. The Company is exposed to these risks given the portfolio
of interest-bearing receivables (mainly taken up in financial fixed assets and cash and cash equivalents),
interest bearing non-current and current liabilities (including bonds, notes and bank loans).
Credit risk
On a yearly basis, the Company assesses the credit risk for counterparties within the BASF Group where
there are loans granted at year-end. So far, the Company has only granted loans to 100% Group
companies, which are classified as counterparties with low credit risk.
In 2025, 100% (2024: 100%) of the receivables of the Company were held with related parties, which are
100% (2024: 100%) concentrated with BASF Group companies. In general, the management of the
Company assesses and reviews credit risk for counterparties within the BASF Group. The Company's
obligations to third parties on the bond markets are guaranteed by BASF SE, the parent  company of the
BASF Group.
Fraud risk
In specific areas with a higher risk for fraud, Management has taken separate measures. The payment
process has been specifically identified as a process with a potential higher fraud risk. In this area, there
is a strict focus on Segregation of Duties and access control to the software environment.
Interest rate risk
Interest rate risks are the result of changes in prevailing market interest rates, which can cause a change
in the present value of fixed-rate instruments, and changes in the interest payments of floating rate
instruments.
In general, the Company strives to match interest rate risks of its assets and liabilities. Due to the fact that
the bonds have the same interest base and term as the issued loans to group companies, the interest
rate risk is naturally hedged.
Derivative financial instruments may be used by the entity to hedge interest rate risks, if deemed
necessary.  Interest rate derivative financial instruments may be used to adjust the fixed or floating nature
of the external notes or loans obtained to the desired profile. In 2024, no derivative financial instruments
are outstanding and no derivative instruments have been used during the reporting period.
Cash flow risk
The Company is currently not exposed to cash flow risk due to the intercompany financing structure. Any
cash payment regarding loans payable are directly offset by a cash flow regarding the loans receivable.
Annual Report 2025                                                                                                                                                                  Page 25 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
Foreign currency risk
Financial foreign currency risks are the result of the translation of receivables, liabilities and other
monetary items. These risks are not hedged by using derivative instruments.
The Company is exposed to foreign exchange risk on liabilities and receivables denominated in a
currency other than Euro, but these related risks are naturally hedged. In general, the Company strives to
match foreign exchange risks of its assets and liabilities.
Foreign currency derivative financial instruments, mainly currency forwards and swaps, may be used to
reduce the foreign currency risk arising on financing and funding transactions in foreign currencies.     
No foreign currency derivative financial instruments are outstanding and have been used during the
reporting period.
Liquidity risk
Risks from cash flow fluctuations are recognized in a timely manner as part of the liquidity planning.
Uncertainties are taken into account by means of additional risk scenarios and the short-term updating of
our liquidity planning. This means the Company can promptly take the necessary measures when
required. The liquidity policy is determined by BASF SE.
Due to a cash-pooling agreement for all bank accounts of the Company with BASF SE, the Company has
access to sufficient liquidity reserves so that there is no danger of liquidity risk even if an unexpected
event has a negative financial impact on the Company's liquidity situation.
Fair Value
The fair value of both financial fixed assets and long term liabilities has decreased due to increased
market interest rates.
The fair value of the financial instruments stated on the balance sheet can be specified as follows:
Due to the same duration and interest conditions of both assets and liabilities, the fair value of the assets
and liabilities is still in balance. Management has the opinion to it can realize the presented book values.
Fair value
Book value
Fair value
Book value
12/31/2025
12/31/2025
12/31/2024
12/31/2024
Financial fixed assets
Loans to group companies
–
–
485,930
498,738
Financial current assets
Loans to group companies
493,968
499,413
191,467
192,450
Long term liabilities
Notes/Loans payable
–
–
485,355
498,771
Current liabilities
Notes/Loans payable
493,735
499,431
191,445
192,451
The fair values represent the clean fair value excluding interest accruals. For the calculation, discount
factors based on secondary market yields (source: Bloomberg) were used to reflect the BASF SE risk.
The fair value of financial instruments other than the ones stated in the above table is close to the
carrying amount.
As per December 31, 2025, no derivative financial instruments were outstanding.
As per December 31, 2024, no derivative financial instruments were outstanding.
Annual Report 2025                                                                                                                                                                  Page 26 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
6 NOTES TO THE PROFIT AND LOSS ACCOUNT 2025
7  Interest and similar income
   
2025
2024
€ x 1,000
€ x 1,000
Loan 20, BASF Antwerpen N.V.
7,825
7,818
Loan 22, BASF Nederland B.V.
3,721
8,003
FX result
–
54
Current account with parent company
92
236
11,638
16,111
8  Interest and similar expenses
   
2025
2024
€ x 1,000
€ x 1,000
Loan 13, BASF Ireland Ltd.
–
17
Note 20, 0.75% EUR bond 2016-2026
4,409
4,406
Note 22 3.625% USD bond 2018-2025,
private placement
3,171
6,819
FX result
104
–
7,684
11,242
Guarantee fees to BASF SE
3,624
4,260
11,308
15,502
    In accordance with DAS 273.104 the guarantee fees are a part of the interest and similar expenses.   
Emoluments of directors and supervisory directors
As the Company has no personnel, the Company pays no remuneration and has not issued loans or
advance to members of the Board of Directors and Supervisory Board.
Staff
During 2025 and 2024 the Company had no employees.
9  General and administrative expenses
2025
2024
€ x 1,000
€ x 1,000
Other general expenses
302
268
Annual Report 2025                                                                                                                                                                  Page 27 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
The other general expenses substantially comprise consulting costs related to accounting, legal, finance
and bank charges. They also comprise auditor fees, non-recoverable VAT and other professional charges
as well as service charges from BASF Nederland B.V.
With reference to Section 2:382a (3) of the Dutch Civil Code the Company did not disclose the fees for
the auditor as these are incorporated in the consolidated financial statements of BASF SE
10  Tax on result from ordinary activities
2025
2024
€ x 1,000
€ x 1,000
Result before tax
28
341
Corporate income tax
-5
-79
Net result
23
262
The result before taxation amounts to € 28 (2024: € 341), the non deductible interest expenses amount to
€ 0 (2024: € 17) which makes the taxable result for the year to amount to € 28 (2024: € 358). The taxation
over the period amounts to € 5 (2024: € 79).
The Netherlands enacted legislation to implement the Qualified Domestic Minimum Top-up Tax (QDMTT)
that came into force as of 2025. BASF Finance Europe N.V. is not subject to QDMTT, since the effective
tax rate for all group companies in the Netherlands following the Pillar II calculations is higher than 15%.
Income tax expense consists of current corporate income tax. The effective tax rate of 19.0%
(December 31, 2024: 23.2%) is equal to the prevailing tax rates for 2025 (19.0% tax rate on the first       
€ 200,000 of taxable profits, 25.8% tax rate for the rest) in the Netherlands.
11  Transactions with related parties
There were no reportable related party transactions with members of the Board of Directors. There are no
transactions with related parties, except otherwise disclosed in this report.
Transactions with related parties are assumed when a relationship exists between the company and a
natural person or entity that is affiliated with the company. This includes, amongst others, the relationship
between the company and its Group companies, shareholders, directors and key management personnel.
Transactions are transfers of resources, services or obligations, regardless whether anything has been
charged.
The Company has loans and receivables outstanding with the shareholders and other Group companies.
The terms and conditions are disclosed at the respective note.
Annual Report 2025                                                                                                                                                                  Page 28 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
7 Other disclosure
Subsequent events
After the balance sheet date, no subsequent events have occurred.
Appropriation of the result for the 2024 financial year
The annual accounts for 2024 were adopted by the General Meeting of Shareholders. The General
Meeting of Shareholders has determined the appropriation of the result as it was proposed.
Appropriation of the profit for the 2025 financial year
The Board of Directors proposes to add the profit for 2025 of € 23 to the other reserves. Awaiting the
approval by the General Meeting of Shareholders, this proposal has not been processed in the annual
accounts and is, therefore, included in the unappropriated result.
Signing of the financial statements
Arnhem, The Netherlands, April 21, 2026
Board of Directors for approval                            Supervisory Board for approval
R. Holtermann (Director)                                            M. Binger (Chairman of the Supervisory Board)
I. Tenten (Director)                                                      B. Benecke (Member of the Supervisory Board)
F. Wilhelmi (Director)                                                  C. Becx (Member of the Supervisory Board)                                           
Annual Report 2025                                                                                                                                                                  Page 29 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
OTHER INFORMATION
1 Provisions of the Articles of Association relating to profit
appropriation
In the articles of association (article 20) it is stated that profits of the company shall be at the disposal of
the General Meeting of Shareholders. At the same time, the articles state that the Company may
distribute profits only if and to the extent that its shareholders' equity is higher than the aggregate of the
paid and called-up part of the issued capital and the reserves, which must be maintained by law.
The Company can only make payments to the shareholders in so far as:
• the Company can continue to pay its outstanding debts after the distribution (the so-called distribution
test), and;
• the shareholders’ equity exceeds the legal reserves and statutory reserves under the articles of
association to be maintained (the so-called balance sheet test).
If not, the General Meeting of Shareholders shall not approve the distribution.
Annual Report 2025                                                                                                                                                                  Page 30 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
2 Independent auditor’s report
To the shareholders of BASF Finance Europe N.V.
Report on the audit of the financial statements 2025 included in the annual report
Our opinion
We have audited the financial statements 2025 of BASF Finance Europe N.V.., based in Velperplein 23,
Arnhem, Netherlands.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of
BASF Finance Europe N.V. as at 31 December 2025, and of its result for the year ended 31 December
2025 in accordance with Part 9 of Book 2 of the Dutch Civil Code.
The financial statements comprise:
1 The balance sheet as at 31 December 2025.
2 The profit and loss account for the year ended 31 December 2025.
3 The notes comprising a summary of the accounting policies and other explanatory information.
Basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our
responsibilities under those standards are further described in the 'Our responsibilities for the audit of the
financial statements' section of our report.
We are independent of BASF Finance Europe N.V. in accordance with the EU Regulation on specific
requirements regarding statutory audit of public-interest entities, the Wet toezicht accountantsorganisaties
(Wta, Audit firms supervision act), the Verordening inzake de onafhankelijkheid van accountants bij
assurance-opdrachten (ViO Code of Ethics for Professional Accountants, a regulation with respect to
independence) and other relevant independence regulations in the Netherlands. Furthermore, we have
complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics for
Professional Accountants).
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Information in support of our opinion
We designed our audit procedures in the context of our audit of the financial statements as a whole and in
forming our opinion thereon. The following information in support of our opinion was addressed in this
context, and we do not provide a separate opinion or conclusion on these matters.
Materiality
Based on our professional judgment we determined the materiality for the financial statements as a whole
at EUR 5,000,000. The materiality is based on 1% of Total Assets. We have also taken into account
misstatements and/or possible misstatements that in our opinion are material for the users of the financial
statements for qualitative reasons.
Annual Report 2025                                                                                                                                                                  Page 31 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
We agreed with those charged with governance, that misstatements in excess of EUR 250,000, which are
identified during the audit, would be reported to them, as well as smaller misstatements that in our view
must be reported on qualitative grounds.
Audit approach fraud risks
We identified and assessed the risks of material misstatements of the financial statements due to fraud.
During our audit we obtained an understanding of the entity and its environment and the components of
the system of internal control, including the risk assessment process and management's process for
responding to the risks of fraud and monitoring the system of internal control and how those charged with
governance exercise oversight, as well as the outcomes. We refer to section 1.5 of the board report for
management's fraud risk assessment. We note that management has not formalised its fraud risk
assessment.
We evaluated the design and relevant aspects of the system of internal control and in particular the fraud
risk assessment, as well as among others the code of conduct, whistle blower procedures and incident
registration. We evaluated the design and the implementation and, where considered appropriate, tested
the operating effectiveness, of internal controls designed to mitigate fraud risks.
As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to financial
reporting fraud, misappropriation of assets and bribery and corruption. We evaluated whether these
factors indicate that a risk of material misstatement due to fraud is present.
We identified the following fraud risks and performed the following specific procedures:
Management override of controls:
• We have reviewed journal entries made and evaluated whether these include elements that could   
            relate to fraud and management override.
• We have identified and obtained an understanding of the business rationale for significant or                               
            unusual transactions that are outside the normal course of business.
• We have evaluated whether the judgments and decisions made by management in making the   
            estimates included in the financial statements, even if they are individually reasonable, indicate a 
            possible bias on the part of the entity’s management.
We incorporated elements of unpredictability in our audit. We also considered the outcome of our other
audit procedures and evaluated whether any findings were indicative of fraud or non-compliance.
We considered available information and made enquiries of relevant executives and those charged with
governance.
We tested the appropriateness of journal entries recorded in the general ledger and other adjustments
made in the preparation of the financial statements.
We evaluated whether the selection and application of accounting policies by the entity, particularly those
related to subjective measurements and complex transactions, may be indicative of fraudulent financial
reporting.
Annual Report 2025                                                                                                                                                                  Page 32 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
We evaluated whether the judgments and decisions made by management in making the accounting
estimates included in the financial statements indicate a possible bias that may represent a risk of
material misstatement due to fraud. Management insights, estimates and assumptions that might have a
major impact on the financial statements are disclosed in note 4 of the financial statements. We
performed a retrospective review of management judgments and assumptions related to significant
accounting estimates reflected in prior year financial statements. Impairment testing of the loan receivable
(due in November 2026, therefore reclassified in 2025 to current assets: Other Receivables) is a
significant area to our audit as the determination whether these assets are not carried at more than their
recoverable amounts is subject to significant management judgment.
For significant transactions such as redemption of bonds we evaluated whether the business rationale of
the transactions suggests that they may have been entered into to engage in fraudulent financial reporting
or to conceal misappropriation of assets.
This did not lead to indications for fraud potentially resulting in material misstatements.
Audit approach compliance with laws and regulations
We assessed the laws and regulations relevant to the entity through discussion with Management,
reading minutes.
As a result of our risk assessment procedures, and while realizing that the effects from non-compliance
could considerably vary, we considered the following laws and regulations: (corporate) tax law and the
requirements under Part 9 of Book 2 of the Dutch Civil Code with a direct effect on the financial
statements as an integrated part of our audit procedures, to the extent material for the financial
statements.
We obtained sufficient appropriate audit evidence regarding provisions of those laws and regulations
generally recognized to have a direct effect on the financial statements.
Apart from these, the entity is subject to other laws and regulations where the consequences of non-
compliance could have a material effect on amounts and/or disclosures in the financial statements, for
instance, through imposing fines or litigation.
Given the nature of the entity's business and the complexity of these other laws and regulations, there is a
risk of non-compliance with the requirements of such laws and regulations.
Our procedures are more limited with respect to these laws and regulations that do not have a direct
effect on the determination of the amounts and disclosures in the financial statements.
Compliance with these laws and regulations may be fundamental to the operating aspects of the
business, to the entity's ability to continue its business, or to avoid material penalties (e.g., compliance
with the terms of operating licenses and permits or compliance with environmental regulations) and
therefore non-compliance with such laws and regulations may have a material effect on the financial
statements. Our responsibility is limited to undertaking specified audit procedures to help identify non-
compliance with those laws and regulations that may have a material effect on the financial statements.
Our procedures are limited to (i) inquiry of management, those charged with governance, the executive
board and others within the entity as to whether the entity is in compliance with such laws and regulations
and (ii) inspecting correspondence, if any, with the relevant licensing or regulatory authorities to help
identify non-compliance with those laws and regulations that may have a material effect on the financial
statements.
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BASF Finance Europe N.V.
Arnhem, The Netherlands
Naturally, we remained alert to indications of (suspected) non-compliance throughout the audit.
Finally, we obtained written representations that all known instances of (suspected) fraud or non-
compliance with laws and regulations have been disclosed to us.
Audit approach going concern
Management has prepared the annual report on the basis of going concern for the period of 12 months
from the date of preparation of the annual report. Management’s going concern assessment is limited to
the assessment of recoverability of the loans forwarded to the counterparties, which is the main activity of
the entity. There is no standard revenue stream hence the going concern assumption is based on the
recoverability of these loans. Our work to review the board’s going concern assessment includes, among
others:
• Considering whether the management’s going concern assumption contains all relevant information.
• Determining whether management has identified events or circumstances that may cast significant
doubt on the company’s ability to continue as a going concern.
• Analysing whether the current and required financing for the continuation of the entire business
activities is guaranteed.
Our audit procedures show that the going concern assumption used by management is acceptable and
no going concern risks have been identified.
Our key audit matters
Key audit matters are those matters that in our professional judgment, were of most significance in our
audit of the financial statements. We have communicated the key audit matters to those charged with
governance. The key audit matters are not a comprehensive reflection of all matters discussed.
Key audit matter: Impairment of the loans to the group company
Key audit matter is the risk associated with the possible impairment of the loans to a group company
BASF Finance Europe N.V.. Reference is made to note 1, 2, 4 and 5 of the financial statements.
The loans to the group company including the related interest comprise a significant part of the
Company’s balance sheet. The loans to the group company are valued at amortized cost less any
impairments if applicable.
The loans to group company mainly consist of receivables from the related company, BASF Nederland
B.V. (Loan 22) which was settled in June 2025 and BASF Antwerpen N.V. (Loan 20) which will be settled
on 10 November 2026. The risk of potential impairments is identified as a result of the significant part of
the Company’s balance sheet and the fact that it mainly relates directly or indirectly to two counterparties.
Inaccurate valuation of loans could have a material impact on the valuation of the loans to these entities
mentioned above. We consider the valuation of these account balances to be a key audit matter.
How our audit addressed the matter
We performed the following procedures to audit the valuation of the loans to the related company:
• We recalculated the amortized cost value and the related interest income based on the effective
interest method.
• We reviewed the audited 2025 financial statements the counterparties, analysed the financial
performance and evaluated valuation of the loans with BASF Finance Europe N.V. to conclude on
possible triggering events for impairment.
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BASF Finance Europe N.V.
Arnhem, The Netherlands
• We have challenged the information used by management.
• We concluded on existence of the receivables in verifying the outstanding amount with the loan
agreements, the financial statements of the parent company and by signed confirmations from the
parent company.
• We reviewed the Company’s disclosure note 5 on the matter.
Key observations and conclusion
Based on the procedures performed, as described above, we did not identify any material reportable
matters in management’s assessment of the recoverability of the loans to the group company.
Report on the other information included in the annual report
The annual report contains other information, in addition to the financial statements and our auditor's
report thereon.
The other information consists of:
• Report of the management.
• Other Information as required by Part 9 of Book 2 of the Dutch Civil Code.
Based on the following procedures performed, we conclude that the other information:
• Is consistent with the financial statements and does not contain material misstatements.
• Contains all the information regarding the management report and the other information as required by
Part 9 of Book 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and understanding obtained through our
audit of the financial statements or otherwise, we have considered whether the other information contains
material misstatements.
By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil
Code and the Dutch Standard 720. The scope of the procedures performed is substantially less than the
scope of those performed in our audit of the financial statements.
Management is responsible for the preparation of the management report in accordance with Part 9 of
Book 2 of the Dutch Civil Code, and the other information as required by Part 9 of Book 2 of the Dutch
Civil Code.
Report on other legal and regulatory requirements
Engagement
We were engaged by the supervisory board as auditor of BASF Finance Europe N.V. in 2024, as of the
audit for the year 2025.
No prohibited non-audit services
We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on
specific requirements regarding statutory audit of public-interest entities.
Annual Report 2025                                                                                                                                                                  Page 35 of 37
BASF Finance Europe N.V.
Arnhem, The Netherlands
European Single Electronic Format (ESEF)
BASF Finance Europe N.V. has prepared its annual report in ESEF. The requirements for this are set out
in the Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the
specification of a single electronic reporting format (hereinafter: the RTS on ESEF).
In our opinion, the annual report, prepared in XHTML format, including the financial statements of BASF
Finance Europe N.V. complies in all material respects with the RTS on ESEF.
Management is responsible for preparing the annual report including the financial statements in
accordance with the RTS on ESEF.
Our responsibility is to obtain reasonable assurance for our opinion whether the annual report complies
with the RTS on ESEF.
We performed our examination in accordance with Dutch law, including Dutch Standard 3950N
‘Assurance- opdrachten inzake het voldoen aan de criteria voor het opstellen van een digitaal
verantwoordingsdocument’ (assurance engagements relating to compliance with criteria for digital
reporting).
Our examination included amongst others:
• Obtaining an understanding of the company’s financial reporting process, including the preparation of
the annual report in XHTML format.
Identifying and assessing the risks that the annual report does not comply in all material respects with the
RTS on ESEF and designing and performing further assurance procedures responsive to those risks to
provide a basis for our opinion including obtaining the annual report in XHTML format and performing
validations to determine whether the annual report complies the RTS on ESEF.
Description of responsibilities regarding the financial statements
Responsibilities of management for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with Part 9 of Book 2 of the Dutch Civil Code. Furthermore, management is responsible for
such internal control as management determines is necessary to enable the preparation of the financial
statements that are free from material misstatement, whether due to fraud or error.
As part of the preparation of the financial statements, management is responsible for assessing the
company's ability to continue as a going concern. Based on the financial reporting frameworks mentioned,
management should prepare the financial statements using the going concern basis of accounting unless
management either intends to liquidate the company or to cease operations, or has no realistic alternative
but to do so.
Management should disclose events and circumstances that may cast significant doubt on the company's
ability to continue as a going concern in the financial statements.
Our responsibilities for the audit of the financial statements
Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient
and appropriate audit evidence for our opinion.
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BASF Finance Europe N.V.
Arnhem, The Netherlands
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not
detect all material misstatements, whether due to fraud or error, during our audit.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements. The materiality affects the nature, timing and extent of our audit
procedures and the evaluation of the effect of identified misstatements on our opinion.
We have exercised professional judgment and have maintained professional skepticism throughout the
audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence
requirements. Our audit included among others:
• Identifying and assessing the risks of material misstatement of the financial statements,whether due to
fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtaining an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the company's internal control.
• Evaluating the appropriateness of accounting policies used and the reasonableness of 
    accounting estimates and related disclosures made by management.
• Concluding on the appropriateness of management's use of the going concern basis of accounting,
and based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the company's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may cause a company to cease to continue as a going
concern.
• Evaluating the overall presentation, structure and content of the financial statements, including the
disclosures.
• Evaluating whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant findings in internal
control that we identified during our audit. In this respect we also submit an additional report to the audit
committee in accordance with Article 11 of the EU Regulation on specific requirements regarding statutory
audit of public- interest entities. The information included in this additional report is consistent with our
audit opinion in this auditor's report.
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BASF Finance Europe N.V.
Arnhem, The Netherlands
We provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine the key audit
matters: those matters that were of most significance in the audit of the financial statements.
We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, not communicating the matter is in the public
interest.
Rotterdam, 21 April 2026
Deloitte Accountants B.V
J. Penon
Director