Statement of Cash Flows

2nd Quarter 2016

At €2,293 million, cash provided by operating activities in the second quarter of 2016 was €460 million below the level of the previous second quarter. The release of funds in net working capital was largely related to a seasonally lower level of trade accounts receivable. The previous second quarter’s higher amount of released funds had arisen from inventory optimization.

Cash used in investing activities amounted to €730 million, compared with €1,829 million in the second quarter of 2015. At €978 million, payments related to property, plant and equipment and intangible assets decreased compared with the same quarter of the previous year (€1,567 million).

Cash used in financing activities amounted to €3,811 million, compared with €633 million in the second quarter of 2015. Cash outflow was mainly the result of scaling back BASF SE’s U.S. dollar commercial paper program. In the previous second quarter, BASF SE’s U.S. dollar commercial paper program had been expanded.

1st Half 2016

At €3,339 million, cash provided by operating activities in the first half of 2016 decreased by €1,804 million compared with the same period of 2015. Cash tied down in net working capital was primarily a consequence of seasonal increases in trade accounts receivable. The first half of the previous year had included a release of funds in net working capital, arising predominantly from the €1.3 billion decline in inventories. This was mainly the result of seasonal effects in the gas storage business – meanwhile divested – and the crop protection business, in addition to inventory optimization measures.

Investing activities led to a cash outflow of €1,988 million, compared with €3,331 million in the same period of 2015. At €1,979 million, payments related to property, plant and equipment and intangible assets were considerably lower than in the first half of the previous year (€2,845 million).

Cash used in financing activities amounted to €1,814 million; in the first half of 2015, €1,033 million had been used in financing activities. The cash inflow resulting from the changes in financial liabilities amounted to €944 million. This was predominantly due to the expansion of BASF SE’s U.S. dollar commercial paper program in addition to an increase in current bank liabilities. Dividends of €2,664 million were paid to shareholders of BASF SE, which was €92 million more than in the previous year. Payments of €104 million were made to minority shareholders of Group companies in the form of dividends.

Net debt

Net debt is calculated by subtracting cash and cash equivalents from current and noncurrent financial indebtedness.¹ This balance-related indicator provides information on effective indebtedness. Net debt rose from €12,956 million on December 31, 2015, to €14,107 million on June 30, 2016.