Net Assets and Financial Position of BASF SE

Net Assets

Total assets declined by €5,604 million compared with December 31, 2022, to €57,033 million.

Fixed assets decreased by €220 million. Intangible assets declined by €493 million. In addition to scheduled depreciation, impairments of €260 million were recognized in the Materials segment. Property, plant and equipment increased by €38 million. Overall, investments were slightly higher than scheduled depreciation. Furthermore, impairments of €88 million were recognized, which related in particular to a plant in the Materials segment. Financial assets also increased by €235 million due to capital measures at foreign subsidiaries.

Current assets and other assets decreased by €5,384 million. Receivables from affiliated companies declined by €4,805 million due to the repayment of financial investments within the Group, lower profit transfers and lower trade accounts receivable within the Group. The €346 million decrease in trade accounts receivable was partly attributable to the sale of accounts receivable as part of a factoring program launched in the 2023 business year. In addition, deferred taxes declined by €408 million and inventories by €284 million. This was offset by an increase of €780 million in liquid funds.

Financial Position

Equity increased by €4,330 million. The net income of €7,434 million was offset by the dividend of €3,035 million paid for the 2022 reporting year, and effects amounting to €70 million from the share buyback.

Provisions decreased by a total of €299 million. Within this item, other provisions declined by €260 million, primarily as a result of lower provisions for variable compensation. Pension plan assets were offset against pension obligations, which resulted in a surplus of obligations. Overall, provisions for pensions decreased by €92 million as a result of this offsetting. The main reason for the €162 million increase in plan assets was an increase in fair values. Pension obligations increased by €70 million, in particular due to the effects of the pension adjustments. Provisions for taxes rose by €53 million.

Liabilities and other items decreased by €9,635 million. Within this item, liabilities to affiliated companies decreased by €9,114 million, mainly due to the repayment of intragroup borrowings. In addition, trade accounts payable decreased by €391 million.

Operating activities generated cash of €12,369 million in the 2023 reporting year (previous year: €903 million), in particular from BASF SE’s function as the parent company of the BASF Group. At €7,434 million, net income was considerably above the prior-year level (previous year: €3,849 million). In addition, profit transfers from the previous year and inflows from operating receivables and inventories had a positive effect in the reporting year. This was partially offset by noncash expenses for deferred taxes as well as cash outflows from the decrease in operating liabilities.

Investing activities generated cash of €543 million (previous year: €3,319 million). Cash inflows from repayments of intragroup cash investments, the sale of marketable securities and capital decreases at subsidiaries exceeded cash outflows for investments in financial assets and property, plant and equipment in the reporting year. Investments in financial assets mainly related to capital increases at foreign subsidiaries.

Financing activities resulted in a cash outflow of €11,935 million (previous year: €4,576 million). This was mainly due to the repayment of financial liabilities within the Group and the dividend payment. Issuance of financial debts were offset by repayments of a comparable amount.

In total, liquid funds rose by €977 million to €1,160 million. These comprise cash on hand and balances with banks.