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Sales and Earnings Forecast for the Segments

For the Chemicals segment in 2022, we expect sales to decline considerably following very high prices in 2021 due to supply shortages in the market. The decrease in 2022 will be driven by considerably lower sales in the Petrochemicals division. We expect a normalization of the market situation, particularly in the United States, following the supply disruption caused by Winter Storm Uri in January 2021. In the Intermediates division, we anticipate higher sales volumes driven mainly by amines and polyalcohols. Prices in the segment are expected to decline to a lower level while higher raw materials prices will put pressure on margins. For both divisions, we therefore anticipate a considerable decline in EBIT before special items.

For the Materials segment, we are forecasting slight sales growth in 2022. Despite the strong recovery in 2021, this will be largely attributable to further volume growth in both divisions. Increased inflationary pressures will be offset by efficiency gains. We anticipate lower prices due to a normalization of the market environment. EBIT before special items in the Monomers division is expected to decrease considerably after strong margins in 2021 as a result of lower price levels and higher raw materials prices. In the Performance Materials division, by contrast, we anticipate a considerable increase in EBIT before special items due to the positive development of sales volumes. However, this will only be able to partly compensate for the decline in the Monomers division.

We expect sales in the Industrial Solutions segment to be slightly below the prior-year level. Higher volumes and continuing high price levels in both operating divisions will presumably not be able to completely offset the negative portfolio effects from the divestiture of the global pigments business as of June 30, 2021. We are forecasting a slight decline in the segment’s EBIT before special items compared with 2021. This will primarily result from the decrease in the Dispersions & Resins division, largely due to the divestiture of the pigments business. The Performance Chemicals division will likely see significant growth in EBIT before special items mainly as a result of higher sales volumes and stronger margins. However, this will not be able to fully compensate for lower earnings in the Dispersions & Resins division.

In the Surface Technologies segment, we are forecasting considerably lower sales in 2022, primarily as a result of lower precious metal prices in the Catalysts division. This will be partly offset by higher volumes in both divisions. The segment’s EBIT before special items is expected to decline slightly. We anticipate considerably higher EBIT before special items in the Coatings division but a considerable year-on-year decrease in EBIT before special items in the Catalysts division due to lower contributions from precious metal trading.

For the Nutrition & Care segment, we expect considerable sales growth compared with 2021. We anticipate higher volumes in both divisions and higher price levels overall, primarily due to the passing on of higher raw materials prices and logistics and energy costs. This will be partly offset by portfolio effects from the sale of the production site in Kankakee, Illinois. The segment’s EBIT before special items should be significantly above the prior-year level. We expect significantly higher earnings contributions from both divisions, mainly due to higher margins on the back of strong volume growth.

We are forecasting considerable sales growth in the Agricultural Solutions segment. We will raise our sales prices and volumes in a continued challenging market environment, characterized by supply bottlenecks and high energy and raw materials prices. Based on the positive development of sales, we anticipate a strong improvement in EBIT before special items. In 2022, we will continue to invest in research and development and digitalization at a high level.

Sales in Other are expected to be slightly above the 2021 level in 2022. This will be mainly attributable to sales growth in commodity trading. Despite lower corporate research expenses, we anticipate considerably lower EBIT before special items for 2022 compared with the previous year.

Million € Sales EBIT before special items ROCE
  2021 Forecast 2022 2021 Forecast 2022 2021 Forecast 2022

Chemicals

13,579

considerable decline

2,974

considerable decline

32.9%

considerable decline

Materials

15,214

slight increase

2,418

considerable decline

22.8%

considerable decline

Industrial Solutions

8,876

slight decline

1,006


slight decline

15.2%

slight increase

Surface Technologies

22,659

considerable decline

800

slight decline

5.6%

considerable decline

Nutrition & Care

6,442

considerable increase

497

considerable increase

  8.2%

considerable increase

Agricultural Solutions

8,162

considerable increase

715

considerable increase

4.5%

considerable increase

Other

3,666

slight increase

–643

considerable decline

BASF Group

78,598

€74 billion–€77 billion

7.768

€6.6 billion–€7.2 billion

13,5%

11.4%–12.6%

a For sales, “slight” represents a change of 0.1%–5.0%, while “considerable” applies to changes of 5.1% and higher. “At prior-year level” indicates no change (+/–0.0%). For earnings, “slight” means a change of 0.1%–10.0%, while “considerable” is used for changes of 10.1% and higher. “At prior-year level” indicates no change (+/–0.0%). At a cost of capital percentage of 9% for 2022, we define a change in ROCE of 0.1 to 1.0 percentage points as “slight,” a change of more than 1.0 percentage points as “considerable” and no change (+/–0.0 percentage points) as “at prior-year level.”

Last Update February 25, 2022