Financial Position
|
December 31, 2021 |
December 31, 2020 |
||
|---|---|---|---|---|
|
Million € |
% |
Million € |
% |
Subscribed capital and capital reserves |
4,282 |
4.9 |
4,291 |
5.3 |
Retained earnings |
40,365 |
46.2 |
37,911 |
47.2 |
Other comprehensive income |
–3,855 |
–4.4 |
–8,474 |
–10.6 |
Noncontrolling interests |
1,289 |
1.5 |
670 |
0.8 |
Equity |
42,081 |
48.2 |
34,398 |
42.8 |
|
|
|
|
|
Provisions for pensions and similar obligations |
6,160 |
7.0 |
8,566 |
10.7 |
Deferred tax liabilities |
1,499 |
1.7 |
1,447 |
1.8 |
Tax provisions |
415 |
0.5 |
587 |
0.7 |
Other provisions |
1,782 |
2.0 |
1,484 |
1.8 |
Financial indebtedness |
13,764 |
15.8 |
15,819 |
19.7 |
Other liabilities |
1,600 |
1.8 |
1,711 |
2.1 |
Noncurrent liabilities |
25,220 |
28.8 |
29,614 |
36.9 |
|
|
|
|
|
Accounts payable, trade |
7,826 |
9.0 |
5,291 |
6.6 |
Provisions |
3,935 |
4.5 |
2,825 |
3.5 |
Tax liabilities |
1,161 |
1.3 |
988 |
1.2 |
Financial indebtedness |
3,420 |
3.9 |
3,395 |
4.3 |
Other liabilities |
3,679 |
4.2 |
3,440 |
4.3 |
Liabilities of disposal groups |
61 |
0.1 |
341 |
0.4 |
Current liabilities |
20,081 |
23.0 |
16,280 |
20.3 |
Total equity and liabilities |
87,383 |
100.0 |
80,292 |
100.0 |
Equity and liabilities
At a glance
- Equity ratio of 48.2% after 42.8% in previous year
- Net debt slightly reduced to €14,352 million
- Rated A by Standard & Poor’s, Moody’s and Fitch
- Cash flows from operating activities and free cash flow higher year on year
Equity rose by €7,683 million compared with the previous year to €42,081 million. Retained earnings rose by €2,454 million, mainly because net income significantly exceeded the dividend payments of €3,031 million disbursed in the second quarter of 2021. Other comprehensive income increased equity by €4,619 million, primarily as a result of actuarial gains and currency effects.
The equity ratio improved from 42.8% to 48.2%.
Compared with the 2020 year-end, noncurrent liabilities declined by €4,394 million to €25,220 million. This was primarily attributable to the €2,406 million decrease in provisions for pensions and similar obligations, mainly as a result of higher interest rates in all relevant currency zones and returns on plan assets.
Furthermore, noncurrent financial indebtedness declined by €2,055 million. This was primarily due to the reclassification of three bonds with an aggregate carrying amount of €1,936 million and a loan in the amount of €240 million to current financial indebtedness. Exchange rates and interest had an offsetting effect.
Tax provisions declined by €172 million year on year to €415 million. By contrast, deferred tax liabilities were slightly above the prior year-end figure, at €1,499 million.
The €111 million decrease in other noncurrent liabilities largely resulted from lower negative fair values of derivatives.
Other provisions rose by €298 million, mainly due to higher environmental provisions.
At €20,081 million, current liabilities were €3,801 million above the figure as of December 31, 2020. This was primarily due to the €2,535 million increase in trade accounts payable, largely as a result of positive business development. In addition, current provisions rose by €1,110 million compared with the previous year, primarily from higher provisions for bonus payments and for rebates. Other liabilities increased by €239 million.
Current financial indebtedness was on a level with the prior year-end. This was attributable to the above-mentioned reclassification of three bonds and a loan in the aggregate amount of around €2.2 billion from noncurrent to current financial indebtedness. The reduction in commercial paper at BASF SE (around €1 billion) and the scheduled repayment of a eurobond (€1 billion) and a loan (€150 million) had an offsetting effect.
Tax liabilities rose by €173 million compared with the previous year.
Liabilities of disposal groups amounted to €61 million.
Net debt declined by €325 million compared with December 31, 2020, to €14,352 million.
- More information on the composition and development of individual asset items
- More information on the development of the balance sheet
|
December 31, 2021 |
December 31, 2020 |
|---|---|---|
Noncurrent financial indebtedness |
13,764 |
15,819 |
+ Current financial indebtedness |
3,420 |
3,395 |
Financial indebtedness |
17,184 |
19,214 |
– Marketable securities |
208 |
207 |
– Cash and cash equivalents |
2,624 |
4,330 |
Net debt |
14,352 |
14,677 |
Off-balance sheet obligations
Off-balance sheet obligations mainly relate to long-term purchase obligations for raw materials. We also concluded long-term supply agreements for green power in 2021. In addition, obligations exist in connection with initiated or planned investment projects.
For more information, see the Notes to the Consolidated Financial Statements and the forecast: