Forecast, Opportunities and Risks of BASF SE
The content of this section is not part of the statutory audit of the annual financial statements but has undergone a separate limited assurance by our auditor.
The content of this section is voluntary, unaudited information, which was critically read by the auditor.
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 income from operations in 2025 to be slightly below the level of the previous year. In 2024, income from operations was affected by extraordinary effects on income, particularly by the changes to actuarial assumptions for pension obligations, by gains from asset disposals, and by effects from inventory valuation. Further restructuring measures had an offsetting effect in 2024. For 2025, we anticipate positive earnings contributions from the cost saving measures already implemented, which will be offset by the expenditure for additional restructuring measures required for the implementation of the corporate strategy. Furthermore, we anticipate extraordinary effects on income in 2025 to be lower.
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.
This content fulfills the Disclosure Requirements of the European Sustainability Reporting Standards (ESRS). The ESRS Index gives an overview of the references to the ESRSs in this report.