Statement of Cash Flows

In the 2024 business year, cash flows from operating activities stood at €6,946 million, down by €1,165 million on the prior-year figure. The decline was mainly caused by €1,434 million less cash released from net working capital. Cash inflows, both from the reduction in inventories and trade accounts receivable, were considerably lower in 2024 than in the previous year and totaled €264 million (previous year: €3,339 million). The increase in trade accounts payable led to cash released in the amount of €96 million, whereas cash in the amount of €1,544 million was tied up in the previous year.

In addition, the change in current and deferred taxes resulted in €784 million more tied up in cash than in the previous year. Dividends received from investments accounted for using the equity method fell by €180 million to €442 million; this was due in particular to reduced dividend payments from BASF-YPC Company Ltd., Nanjing, China.

By contrast, income after taxes and after adjustment of noncash items resulted in cash inflows that were €591 million higher than in the previous year; in addition, payments for variable compensation were €689 million lower than in the previous year.

Cash flows from investing activities totaled –€5,081 million in the business year under review, after –€4,991 million in the previous year. Payments for intangible assets and property, plant and equipment increased by €803 million and were mainly incurred in connection with investments in the new Verbund site in China.

In the 2024 business year, €202 million was paid for acquisitions. This mainly related to the takeover of plants at the MDI production facility in Shanghai, China, which was previously operated jointly by BASF and Huntsman. Payments received in the amount of €75 million related to various smaller divestitures.

Payments were made in the amount of €598 million for the acquisition of equity-accounted shareholdings in the Nordlicht 1 and 2 wind farm projects, and for subsequent capital increases. Payments received in connection with the disposal of equity instruments included €1,169 million in connection with the transfer of Wintershall Dea assets to Harbour Energy plc and a capital repayment from Wintershall Dea in the amount of €556 million.

Cash flows from financing activities amounted to –€1,547 million, compared with –€2,905 million in 2023. The repayment and addition of financial and similar liabilities was reduced and their net change resulted in an improvement of €1,524 million in cash flows from financing activities. The dividend payment of €3,035 million to the shareholders of BASF SE remained unchanged compared with the previous year. By contrast, dividends paid to noncontrolling shareholders climbed by €190 million to €249 million.

Free cash flow, which remains after deducting payments made for property, plant and equipment and intangible assets from cash flows from operating activities, represents the financial resources remaining after investments. Free cash flow amounted to €748 million, compared with €2,715 million in 2023.