Slide 1: Analyst Conference Call Full Year 2023
Analyst Conference Call Full Year 2023 Ludwigshafen, February 23, 2024
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the fu
Slide 3: Global chemical production grew by 1.7% in full year 2023
Global chemical production grew by 1.7% in the full year 2023 and by 6.9% in Q4 2023, driven by strong growth in China Chemical production compared with prior year1 % North America EU Mainland China Asia excl. mainland China 0.4 1.8 2.6 1.8 10.9 7.5 6.6 -3.9 -4.9 -1.1 -5.2 -7.6 2022 2023 Q4 2023 202
Slide 4: In Q4 2023, BASF Group's sales volumes were almost stable
In Q4 2023, BASF Group’s sales volumes were almost stable; excluding precious metals, volumes increased slightly Sales development Volumes Prices Portfolio Currency In Q4 2023, sales declined by 17.9% to €15.9 billion, Q4 2023 vs. Q4 2022 mainly due to lower prices and negative currency effects; -
Slide 5: Solid performance in all regions in difficult 2023 environment, except in Ludwigshafen
Solid performance in all regions in difficult 2023 environment, except in Ludwigshafen EBIT before special items of BASF Group Billion € In 2015, Germany, Europe excluding Germany, and the other regions each 7.8 contributed around one-third 6.7 6.9 In 2023, Europe including Germany 2.2 5.4 contr
Slide 6: Further program with additional annual cost savings of €1 billion in Ludwigshafen
Further program with additional annual cost savings of €1 billion in Ludwigshafen by the end of 2026 Total cost savings Billion € (run-rate) ~€2.1 billion Total one- time costs 2.0 ~€1.8 billion Further program will include cost savings in both production as well as Additional cost savings non-pro
Slide 7: Lower Scope 1 and Scope 2 emissions in 2023; new target for Scope 3.1
Lower Scope 1 and Scope 2 emissions in 2023; new target for Scope 3.1 emissions announced in December 2023 Million metric tons Kilograms CO2 per kilogram of raw material bought 21.9 3 1.61 In 2023, Scope 1 and 2 emissions 1.58 declined by 5 million metric tons compared 16.9 16.4 1.34 with the base
Slide 8: BASF Group 2023: Key financial figures
BASF Group 2023: Key financial figures EBITDA before special items EBIT before special items Net income 2023 vs. 2022 2023 vs. 2022 2023 vs. 2022 €7,671 million €3,806 million €225 million -28.7% -44.7% . Operating cash flow Free cash flow Equity ratio 2023 vs. 2022 2023 vs. 2022 Dec. 31, 2023 / Dec
Slide 9: In Q4 2023, EBIT before special items declined due to lower contributions
In Q4 2023, EBIT before special items declined due to lower contributions from Agricultural Solutions, Chemicals and Other EBIT before special items BASF Industrial Surface Nutrition Agricultural BASF Million € Group Chemicals Materials Solutions Technologies & Care Solutions Other Group Q4 2023 vs.
Slide 10: Strong cash flow generation in Q4 2023
Strong cash flow generation in Q4 2023 Q4 2023 FY 2023 Q4 2023 vs. Q4 2022 Million € Million € Cash flows from operating activities decreased by €207 million to €4.3 billion Increased focus on reducing inventory levels paid off; changes in net working capital led to a cash inflow of €3.2 billion
Slide 11: Strong balance sheet
Strong balance sheet Balance sheet December 31, 2023, vs. December 31, 2022 Billion € Total assets decreased by €7.1 billion to 84.5 84.5 €77.4 billion, mainly due to strong focus on 77.4 77.4 net working capital management Net debt of €16.6 billion only slightly above 47.1 40.9 the level of €16
Slide 12: Continued strict management of capital expenditures
Continued strict management of capital expenditures Overall capex budget Capex budget by type of investment Billion €, 2024–2027 Billion €, 2024–2027 Capex 2024 + 2025 ~ -40% 6 Investments in ongoing businesses Capex 2026 + 2027 4 €19.5 billion, Growth projects thereof €6.2 billion in 2024 Zhanjiang
Slide 13: Key elements of the agreement signed by Harbour Energy and Wintershall Dea shareholders
Key elements of the agreement signed by Harbour Energy and the shareholders of Wintershall Dea in December 2023 E&P business1 of Wintershall Dea, excluding Russia-related activities, to be acquired by Harbour Energy plc (Harbour); closing targeted for Q4 2024 In exchange, at closing, BASF will h
Slide 14: Next steps regarding Wintershall Dea transaction
Next steps regarding Wintershall Dea transaction Transaction Harbour shareholders’ Targeted announced approval completion Harbour prospectus Regulatory and and circular published government approvals Dec. 2023 H1 2024 H1 2024 Q1-Q4 2024 Q4 2024 Preparation of closing and of integration 14 February 2
Slide 15: Attractive shareholder return – also in challenging times
Attractive shareholder return – also in challenging times Dividend per share € 4.00 Proposal 3.30 3.30 3.40 3.40 3.40 3.10 3.20 Key facts 2023 2.90 3.00 3.00 2.80 We stick to our practice to increase the dividend per share each year or keep it stable 2.00 Dividend proposal to Annual Shareholders
Slide 16: Outlook 2024 for BASF Group
Outlook 2024 for BASF Group Outlook 2024 EBITDA before special items €8.0 billion – €8.6 billion Free cash flow €0.1 billion – €0.6 billion CO2 emissions 16.7 million – 17.7 million metric tons Underlying assumptions (prior-year figures in parentheses) Growth in gross domestic product: 2.3% (2.6%)
Slide 17: BASF - We create chemistry
O- BASF We create chemistry