Forecast, Opportunities and Risks of BASF SE

Earnings forecast

In its forecast, BASF SE essentially makes the same assumptions regarding the development of global economic environment as the BASF Group.

Considering these assumptions, we expect a considerable improvement in income from operations in 2024 compared with the previous year. In 2023, income from operations was negatively impacted by lower plant capacity utilization, impairments on intangible assets and impairments on property, plant and equipment as well as a one-off cost transfer from a Group company. In addition, ongoing inflation led to high expenses for pension obligations. We do not expect the one-off effects to reoccur in 2024.

Opportunities and risks, risk management system

BASF SE is generally exposed to the same opportunities and risks as the BASF Group.

BASF SE’s internal control and risk management system with regard to the financial reporting process (section 289(4) HGB) is based on a uniform accounting guideline that sets out accounting policies and the significant processes and deadlines on a Group-wide basis. There are binding directives for the internal reconciliations and other accounting operations within the Group. Standard software is used to carry out the accounting processes, and there are clear rules for the access rights of each participant in these processes. The Financial Statements and parts of the disclosures on BASF SE in accordance with the German Commercial Code (HGB) are prepared by a specialist unit in the Global Business Services division.