Surface Technologies
Please note
The audited BASF Report will be published on March 21, 2025. The key financial figures published here are therefore to be regarded as preliminary. From today's perspective, no adjustments are expected.
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.
Until the end of 2024, the Surface Technologies segment comprised the Catalysts and Coatings divisions (for more information on the future composition of the segment). Its portfolio includes, for example, automotive OEM and refinish coatings, surface treatment, catalysts, battery materials as well as precious metals and base metal services for the automotive and chemical industries. We improve our customers’ applications and processes with tailored products, technologies and solutions, and support them through geographical proximity across all regions. The aim is to drive BASF’s growth by leveraging our portfolio of technologies and existing customer networks and expanding our position as a leading and innovative provider of surface coatings solutions and battery materials.
At a glance
€1,375 million
EBITDA before special items
2023: €1,520 million
€925 million
Segment cash flow
2023: €1,488 million
In the Surface Technologies segment, sales declined in both operating divisions compared with the previous year. The negative sales performance was especially notable in the Catalysts division.
|
Surface Technologies |
Catalysts |
Coatings |
|---|---|---|---|
Volumes |
–7.6% |
–10.3% |
–0.3% |
Prices |
–11.0% |
–16.0% |
2.5% |
Currencies |
–1.6% |
–0.5% |
–4.5% |
Portfolio |
–0.2% |
–0.3% |
–0.1% |
Sales |
–20.4% |
–27.1% |
–2.4% |
The decline in segment sales was mainly driven by lower prices for both precious and base metals1 in the Catalysts division. Price increases, especially in the automotive OEM coatings and surface treatments business areas of the Coatings division, were unable to compensate for the aforementioned lower prices.
The decline in sales was exacerbated by considerably lower sales volumes in the Catalysts division, particularly in the mobile emissions catalysts business area. Volumes remained nearly at the prior-year level in the Coatings division. Volume growth in the surface treatments and decorative paints businesses almost made up for slightly lower volumes in the automotive OEM coatings business area.
Negative currency effects – mainly relating to the Argentine peso, the Brazilian real and the Turkish lira – also reduced the segment’s sales.
In addition, the segment’s sales performance was impacted by portfolio effects, particularly those arising from the divestiture of the Catalysts division’s production site in De Meern, Netherlands as of August 31, 2023.
The segment’s EBITDA before special items decreased slightly. The decrease was due to the considerable earnings decline in the Catalysts division compared with 2023, which was attributable above all to the decline of precious metal prices in combination with lower sales volumes. Earnings in the Catalysts division benefited from a higher contribution margin in the chemical and refinery catalysts business. However, in the Coatings division, EBITDA before special items was slightly above the prior-year level. An increased contribution margin was contrasted primarily by higher fixed costs due to inflation and negative currency effects.
Special items in EBITDA amounted to –€215 million in 2024 and mainly resulted from special charges in connection with the conversion of the ERP system to support the differentiated steering of the business. In addition, costs were incurred in the Catalysts division in connection with impairments on property, plant and equipment in the battery materials business. Also in 2023, special charges were incurred in this business in connection with impairments on property, plant and equipment.
The segment cash flow fell considerably, primarily as a result of a lower reduction in receivables and inventories compared with the previous year and lower EBITDA in the Catalysts division. The cash flow development in the Coatings division was mainly due to lower EBITDA as a result of special items as well as cash tied up in inventories.
Million € |
|
2024 |
2023 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
12,898 |
16,204 |
–20.4% |
||||||||||
of which Catalysts |
|
8,617 |
11,818 |
–27.1% |
||||||||||
Coatings |
|
4,280 |
4,387 |
–2.4% |
||||||||||
Intersegment transfers |
|
206 |
176 |
17.0% |
||||||||||
Sales including transfers |
|
13,104 |
16,381 |
–20.0% |
||||||||||
EBITDA before special items |
|
1,375 |
1,520 |
–9.5% |
||||||||||
Special items in EBITDA |
|
–215 |
–168 |
–27.9% |
||||||||||
EBITDA |
|
1,160 |
1,351 |
–14.2% |
||||||||||
EBITDA margin before special items |
% |
10.7 |
9.4 |
– |
||||||||||
Depreciation and amortizationa |
|
1,137 |
986 |
15.4% |
||||||||||
EBIT before special items |
|
786 |
938 |
–16.3% |
||||||||||
Special items in EBIT |
|
–763 |
–572 |
–33.3% |
||||||||||
Income from operations (EBIT) |
|
22 |
366 |
–93.9% |
||||||||||
Investments including acquisitionsb |
|
560 |
621 |
–9.8% |
||||||||||
Segment cash flow |
|
925 |
1,488 |
–37.8% |
||||||||||
Assets (December 31) |
|
11,513 |
12,657 |
–9.0% |
||||||||||
Research and development expenses |
|
313 |
304 |
2.9% |
||||||||||
|
||||||||||||||
Surface Technologies – sales by region
By location of customer
1 Sales, factors influencing sales, EBITDA before special items and the EBITDA margin before special items excluding precious and base metals for the BASF Group and for the Surface Technologies segment are presented under Selected Key Figures Excluding Precious and Base Metals.
These contents fulfill the disclosure requirements of the European Sustainability Reporting Standards (ESRS).