Half-Year Financial Report 2022
H1 | BASF Group | |
22 | Half-Year Financial Report | |
On the cover and this page:
Catalysts are indispensable to many processes and production methods in the chemical industry: They accelerate processes, enable higher production volumes from the same amount of feedstock and reduce energy demand. That is why BASF conducts intensive research in this area and develops innovative solutions for customers in various industries. At a research center at the Ludwigshafen site in Germany, for example, BASF operates highly automated experimental facilities to develop efficient processes and test new process catalysts. The photo shows chemical laboratory technician Melanie Zier monitoring a plant during testing.
BASF Group - Half-Year Financial Report 2022
Contents
At a Glance
Key Figures: BASF Group H1 2022 | 4 | |
Sales - H1 2022
Sales by segment and Other - H1 2022
Consolidated Interim Management's Report 2022 | 5 | |||||||||||||
Significant Events | 5 | |||||||||||||
Results of Operations H1 2022 | 6 | |||||||||||||
Segment sales and EBIT before special items | 7 | |||||||||||||
Net Assets and Financial Position | 9 | |||||||||||||
Net assets | 9 | |||||||||||||
Financial position | 9 | |||||||||||||
Economic Environment and Outlook | 11 | |||||||||||||
Information on Q2 2022 | 13 | |||||||||||||
BASF Group | 13 | |||||||||||||
Chemicals | 16 | |||||||||||||
€46.1 billion
(H1 2021: €39.2 billion)
EBIT before special items - H1 2022
€5.2 billion
(H1 2021: €4.7 billion)
Chemicals €8.4 billion
(H1 2021: €6.2 billion)
Materials
€9.7 billion
(H1 2021: €7.2 billion)
Industrial Solutions
€5.1 billion
(H1 2021: €4.5 billion)
Surface Technologies | |
€10.9 billion | |
(H1 2021: €11.8 billion) | |
€46.1 billion | Nutrition & Care |
€4.0 billion | |
(H1 2021: €39.2 billion) | |
(H1 2021: €3.1 billion) | |
Agricultural Solutions | |
€5.9 billion | |
(H1 2021: €4.8 billion) | |
Other | |
€2.1 billion | |
(H1 2021: €1.6 billion) |
Materials | 17 | |||||||||||||||||||||||||||||||
Industrial Solutions | 18 | |||||||||||||||||||||||||||||||
Surface Technologies | 19 | |||||||||||||||||||||||||||||||
Nutrition & Care | 20 | |||||||||||||||||||||||||||||||
Agricultural Solutions | 21 | |||||||||||||||||||||||||||||||
Other | 22 | |||||||||||||||||||||||||||||||
Regions | 23 | |||||||||||||||||||||||||||||||
Condensed Consolidated Half-Year Financial | ||||||||||||||||||||||||||||||||
Statements 2022 | 24 | |||||||||||||||||||||||||||||||
Statement of Income | 24 | |||||||||||||||||||||||||||||||
Statement of Income and Expense Recognized in Equity | 25 | |||||||||||||||||||||||||||||||
Balance Sheet | 26 | |||||||||||||||||||||||||||||||
Statement of Cash Flows | 28 | |||||||||||||||||||||||||||||||
Statement of Changes in Equity | 29 | |||||||||||||||||||||||||||||||
Segment Reporting | 30 | |||||||||||||||||||||||||||||||
Notes to the Consolidated Half-Year Financial Statements | 31 | |||||||||||||||||||||||||||||||
Responsibility Statement | 48 | |||||||||||||||||||||||||||||||
Selected Key Figures Excluding Precious Metals | 49 | |||||||||||||||||||||||||||||||
Sales by region - H1 2022
EUROPE | NORTH AMERICA | ASIA PACIFIC | SOUTH AMERICA, |
AFRICA, MIDDLE | |||
EAST |
€19.6 | €13.2 | €11.0 | €2.3 |
billion | billion | billion | billion |
Outlook for the BASF Group
Adjusted outlook for the 2022 business year (previous forecast from the BASF Report 2021 in parentheses):
- Sales: €86 billion to €89 billion (€74 billion to €77 billion)
- EBIT before special items: €6.8 billion to €7.2 billion (€6.6 billion to €7.2 billion)
- Return on capital employed (ROCE): 10.5% to 11.0% (11.4% to 12.6%)
- CO2 emissions: 18.4 million metric tons to 19.4 million metric tons (19.6 million metric tons to 20.6 million metric tons)
BASF Group - Half-Year Financial Report 2022 | Key Figures | 4 | |
Key Figures
BASF Group H1 2022
Q2 | H1 | |||||||||||||
2022 | 2021 | +/- | 2022 | 2021 | +/- | |||||||||
Sales | million € | 22,974 | 19,753 | 16.3% | 46,058 | 39,153 | 17.6% | |||||||
Income from operations before depreciation, amortization and special items | million € | 3,293 | 3,217 | 2.4% | 7,036 | 6,398 | 10.0% | |||||||
Income from operations before depreciation and amortization (EBITDA) | million € | 3,396 | 3,199 | 6.2% | 7,105 | 6,375 | 11.4% | |||||||
EBITDA margin | % | 14.8 | 16.2 | − | 15.4 | 16.3 | − | |||||||
Depreciation and amortizationa | million € | 1,046 | 883 | 18.4% | 1,970 | 1,748 | 12.7% | |||||||
Income from operations (EBIT) | million € | 2,350 | 2,316 | 1.5% | 5,135 | 4,627 | 11.0% | |||||||
Special items | million € | 11 | -39 | . | -22 | -49 | 54.2% | |||||||
EBIT before special items | million € | 2,339 | 2,355 | -0.7% | 5,157 | 4,676 | 10.3% | |||||||
Income before income taxes | million € | 2,658 | 2,189 | 21.4% | 4,536 | 4,436 | 2.3% | |||||||
Income after taxes | million € | 2,179 | 1,794 | 21.5% | 3,500 | 3,604 | -2.9% | |||||||
Net income | million € | 2,090 | 1,654 | 26.3% | 3,311 | 3,372 | -1.8% | |||||||
Earnings per shareb | € | 2.31 | 1.80 | 28.3% | 3.65 | 3.67 | -0.5% | |||||||
Adjusted earnings per shareb | € | 2.37 | 2.03 | 16.7% | 5.07 | 4.03 | 25.8% | |||||||
Research and development expenses | million € | 567 | 545 | 3.9% | 1,136 | 1,056 | 7.6% | |||||||
Personnel expenses | million € | 2,964 | 2,924 | 1.4% | 6,031 | 5,871 | 2.7% | |||||||
Employees (June 30) | 110,725 | 107,646 | 2.9% | 110,725 | 107,646 | 2.9% | ||||||||
Assets (June 30) | million € | 96,972 | 82,938 | 16.9% | 96,972 | 82,938 | 16.9% | |||||||
Investments including acquisitionsc | million € | 970 | 831 | 16.7% | 1,711 | 1,376 | 24.3% | |||||||
Equity ratio (June 30) | % | 47.8 | 45.9 | − | 47.8 | 45.9 | − | |||||||
Net debt (June 30) | million € | 19,546 | 16,241 | 20.4% | 19,546 | 16,241 | 20.4% | |||||||
Cash flows from operating activities | million € | 1,228 | 2,537 | -51.6% | 938 | 2,012 | -53.4% | |||||||
Free cash flow | million € | 336 | 1,770 | -81.0% | -557 | 789 | . | |||||||
- Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
- Due to the current share buyback program, the weighted average number of outstanding shares was 903,147,947 in the second quarter of 2022 and 907,989,633 in the first half of 2022.
- Additions to property, plant and equipment and intangible assets
BASF Group - Half-Year Financial Report 2022 | Significant Events | 5 | |
Consolidated Interim Management's Report 2022
Significant Events
On January 4, 2022, the Board of Executive Directors of BASF SE resolved on a share buyback program with a volume of up to €3 billion. This started on January 11, 2022, and is to be completed by December 2023. The share buyback program was initially based on the authorization by the Annual Shareholders' Meeting on May 12, 2017. The program was continued after the renewed
authorizationto purchase own shares had been granted by the Annual Shareholders' Meeting of BASF SE on April 29, 2022. Around 18.5 million shares had been repurchased for almost €1.1 billion as of June 30, 2022.
For more information on the share buyback program, see basf.com/sharebuyback
Together with Heraeus, Hanau, Germany, BASF announced on February 11, 2022, the formation of a joint venture (BASF: 50%; Heraeus: 50%) to recover precious metals from spent automotive catalysts. BASF HERAEUS (China) Metal Resource Co., Ltd., based in Pinghu, China, was formed in early May 2022. Construction of the joint venture's recycling plant is scheduled to begin this year, with start of operations in 2023.
The following changes in responsibilities to two Board of Executive Directors departments ("Ressorts") took effect as of March 1, 2022:
- Saori Dubourg (Ressort IV) assumed responsibility for the Petro- chemicals, Intermediates, Performance Materials and Monomers divisions. She remains responsible for the region Europe.
- Michael Heinz (Ressort V) assumed responsibility for the Care Chemicals, Nutrition & Health and Agricultural Solutions divisions. He remains responsible for the regions North America and South America.
On April 12, 2022, BASF and Allianz Capital Partners (on behalf of Allianz Insurance Companies) closed the purchase of 25.2% of the Hollandse Kust Zuid (HKZ) offshore wind farm by Allianz Capital Partners. BASF had acquired 49.5% of HKZ from Vattenfall in the third quarter of 2021. BASF will receive most of the power produced by its originally acquired share of 49.5% of HKZ under a long-termfixed-price power purchasing agreement.
On April 29, 2022, the Annual Shareholders' Meeting of BASF SE elected Alessandra Genco (48), Chief Financial Officer of Leonardo SpA, Rome, Italy, and Professor Dr. Stefan Asenkerschbaumer (66), chairman of the supervisory board of Robert Bosch GmbH and managing partner of Robert Bosch Industrietreuhand KG, Stuttgart, Germany, to the Supervisory Board of BASF SE as new shareholder representatives. They succeed Anke Schäferkordt (59) and Franz Fehrenbach (72), who stepped down from the Supervisory Board as of the end of the Annual Shareholders' Meeting 2022 due to their many years of service on the Board. The mandates run until the end of the Annual Shareholders' Meeting 2024.
In addition, as of the end of the Annual Shareholders' Meeting 2022, Peter Zaman (53), deputy secretary of the Works Council of BASF Antwerpen NV, André Matta (51), member of the BASF Works Council Europe and the Works Council of BASF SE, and Natalie Mühlenfeld (41), district manager of the Mining, Chemical and
Energy Industries Union (IG BCE) for the Düsseldorf district, joined the Supervisory Board of BASF SE as new employee representa- tives. They succeed Denise Schellemans (60), Waldemar Helber (64) and Roland Strasser (46), who resigned their mandates as of the end of the Annual Shareholders' Meeting 2022. Their mandates on the Supervisory Board of BASF SE also run until the end of the Annual Shareholders' Meeting 2024.
As announced on April 27, 2022, BASF wound down its business activities in Russia and Belarus as of July 10, 2022. Business to support food production remains an exception. This decision was driven by recent developments in the war of aggression on Ukraine and in international law, including the fifth E.U. sanctions package. In 2021, Russia and Belarus accounted for around 1% of the BASF Group's total sales.
Following a detailed review of the impact of the decision from April 27, 2022, impairments on assets of €51 million and provisions for obligations to customers, suppliers and employees in the amount of €27 million were recognized by June 30, 2022. An impairment test was performed for Wintershall Dea's Russian assets as of June 30, 2022. This did not reveal any need for adjustment above and beyond the impairments recognized by Wintershall Dea in the first quarter.
For more information, see Note 8 to the Consolidated Half-Year Financial Statements on page 37 onward
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BASF SE published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 05:11:00 UTC.