Additional Indicators For Results of Operations
We also use alternative performance measures (APMs) to steer the BASF Group. Investors, analysts and rating agencies use them to assess our performance. These are not defined by IFRS. As such, the methods of calculation can differ from those used by other companies. Alternative performance measures for the results of operations are EBIT before special items, EBITDA before special items, EBITDA, the EBITDA margin before special items and adjusted earnings per share. Other APMs are net debt,1 free cash flow1 and capital expenditures (capex).2
From the 2024 reporting year onward, we will use EBITDA before special items and free cash flow as the new most important key performance indicators for short and medium-term steering of the BASF Group. A detailed explanation of how these key performance indicators are calculated can be found in Our Steering Concept.
EBITDA before special items in 2023 was €3,092 million below the 2022 figure at €7,671 million; EBITDA decreased by €3,568 million to €7,180 million. The EBITDA margin before special items was 11.1% in 2023 compared with 12.3% in the previous year.
|
|
2023 |
2022 |
|---|---|---|---|
EBIT |
|
2,240 |
6,548 |
– Special items |
|
–1,566 |
–330 |
EBIT before special items |
|
3,806 |
6,878 |
+ Depreciation and amortization |
|
3,798 |
3,827 |
+ Impairments and reversals of impairments on property, plant and equipment and intangible assets before special items |
|
67 |
57 |
Depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets before special items |
|
3,865 |
3,885 |
EBITDA before special items |
|
7,671 |
10,762 |
Sales revenue |
|
68,902 |
87,327 |
EBITDA margin before special items |
% |
11.1 |
12.3 |
|
|
2023 |
2022 |
|---|---|---|---|
EBIT |
|
2,240 |
6,548 |
+ Depreciation and amortization |
|
3,798 |
3,827 |
+ Impairments and reversals of impairments on intangible assets and property, plant and equipment |
|
1,143 |
373 |
Depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets |
|
4,941 |
4,200 |
EBITDA |
|
7,180 |
10,748 |
|
|
2023 |
2022 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Income after taxes |
|
379 |
–391 |
|||||||||
– Special itemsa |
|
–1,811 |
–6,637 |
|||||||||
+ Amortization, impairments and reversals of impairments on intangible assets |
|
879 |
652 |
|||||||||
– Amortization, impairments and reversals of impairments on intangible assets contained in special items |
|
257 |
0 |
|||||||||
– Adjustments to income taxes |
|
171 |
372 |
|||||||||
Adjusted income after taxes |
|
2,640 |
6,526 |
|||||||||
– Adjusted noncontrolling interests |
|
156 |
248 |
|||||||||
Adjusted net income |
|
2,484 |
6,278 |
|||||||||
Weighted average number of outstanding shares |
|
892,641 |
901,754 |
|||||||||
Adjusted earnings per share |
€ |
2.78 |
6.96 |
|||||||||
|
||||||||||||
Compared with earnings per share, adjusted earnings per share is firstly adjusted for special items. Amortization, impairments and reversals of impairments on intangible assets are then eliminated. Amortization of intangible assets primarily results from the purchase price allocation following acquisitions and is therefore of a temporary nature. The effects of these adjustments on income taxes and on noncontrolling interests are also considered. This makes adjusted earnings per share a suitable measure for making comparisons over time and predicting future profitability.
In 2023, adjusted earnings per share amounted to €2.78 compared with €6.96 in the previous year.
1 For more information on these indicators, see the Financial Position
2 For more information on capex, see Material Investments and Portfolio Measures and Our Steering Concept