Business Review
At a glance
- Sales growth of 36.0% to €22,659 million, mainly as a result of significantly higher precious metal prices
- EBIT before special items rises 65.3% to €800 million due to increase in the Catalysts division
Sales to third parties in the Surface Technologies segment rose by €6,000 million compared with the previous year to €22,659 million. Both divisions contributed to the increase. The Catalysts division recorded sales growth of €5,649 million to €19,219 million. The Coatings division increased sales by €351 million year on year to €3,440 million.
|
Surface Technologies |
Catalysts |
Coatings |
|---|---|---|---|
Volumes |
12.2% |
12.5% |
10.7% |
Prices |
25.3% |
30.4% |
3.2% |
Portfolio |
2.1% |
2.6% |
–0.1% |
Currencies |
–3.6% |
–3.9% |
–2.4% |
Sales |
36.0% |
41.6% |
11.4% |
Sales growth was driven by the strong increase in precious metal prices in the Catalysts division. This also led to considerably higher sales in precious metal trading, at €10,376 million (2020: €7,612 million). The Coatings division recorded slightly higher prices in all business areas.
Considerably higher sales volumes on the back of the global economic recovery from the coronavirus pandemic and following stronger demand also contributed to the positive sales development. Both divisions increased volumes in all business areas. Volume development in the segment was dampened by the ongoing shortage of semiconductors in the automotive market and production and supply chain disruptions.
Portfolio effects in the Catalysts division following the acquisition of our majority shareholding in BASF Shanshan Battery Materials Co., Ltd. had a slightly positive impact on sales.
Sales performance was weighed down by negative currency effects, mainly relating to the U.S. dollar.
|
|
2021 |
2020 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
22,659 |
16,659 |
36.0% |
||||||||||
of which Catalysts |
|
19,219 |
13,570 |
41.6% |
||||||||||
Coatings |
|
3,440 |
3,089 |
11.4% |
||||||||||
Intersegment transfers |
|
171 |
203 |
–15.7% |
||||||||||
Sales including transfers |
|
22,831 |
16,862 |
35.4% |
||||||||||
Income from operations before depreciation, amortization and special items |
|
1,277 |
966 |
32.2% |
||||||||||
Income from operations before depreciation and amortization (EBITDA) |
|
1,243 |
900 |
38.1% |
||||||||||
EBITDA margin |
% |
5.5 |
5.4 |
− |
||||||||||
Depreciation and amortizationa |
|
483 |
1,487 |
–67.6% |
||||||||||
Income from operations (EBIT) |
|
761 |
–587 |
. |
||||||||||
Special items |
|
–39 |
–1,071 |
96.3% |
||||||||||
EBIT before special items |
|
800 |
484 |
65.3% |
||||||||||
Return on capital employed (ROCE) |
% |
5.6 |
–4.8 |
− |
||||||||||
Assets |
|
13,769 |
11,691 |
17.8% |
||||||||||
Investments including acquisitionsb |
|
1,469 |
585 |
151.2% |
||||||||||
Research and development expenses |
|
296 |
246 |
20.4% |
||||||||||
|
||||||||||||||
Surface Technologies – sales
By division
At €800 million, income from operations (EBIT) before special items was €316 million above the 2020 figure due to considerably higher earnings in the Catalysts division. This was driven by growth in sales volumes and the considerably higher earnings contribution from precious metal trading.
EBIT before special items in the Coatings division declined considerably compared with the previous year. The significant rise in volumes was unable to compensate for higher fixed costs, primarily from higher bonus provisions, and a weaker margin due to increased raw materials prices.
EBIT rose by €1,348 million to €761 million. In 2021, we recorded special items of –€39 million after –€1,071 million in 2020, mainly in connection with special charges for impairments.
Divisions |
Europe |
North America |
Asia Pacific |
South America, |
Total |
|---|---|---|---|---|---|
Catalysts |
29% |
34% |
33% |
4% |
19,219 |
Coatings |
33% |
23% |
29% |
15% |
3,440 |