Annual impact of US$/€ exchange rate change on BASF Group
(exchange rate: – $0.01 per €)
Global
Factbook
Factors Influencing Sales and Currency Impact
Factors influencing sales of the BASF Group
| Million € | 20131 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
| Volumes | 5% | 4% | 3% | 2% | 4% | 1% | –3% | –1% | 10.6% | –7.0% |
| Prices | 0% | –3% | –9% | –4% | 8% | 4% | –3% | 3% | 24.8% | 11.9% |
| Currencies | –3% | –1% | 6% | –1% | –1% | –4% | 2% | –3% | –2.4% | 6.1% |
| Acquisitions/divestitures | 1% | 0% | –5% | –15% | 1% | 1% | 2% | 1% | –0.1% | 0.1% |
| Total | 3% | 0% | –5% | –18% | 12% | 2% | –2% | 0% | 32.9% | 11.1% |
1 Figures for 2013 have been adjusted to reflect the dissolution of the natural gas trading business disposal group.
Factors influencing sales
Compared with the previous year, sales rose by €8,729 million to €87,327 million in the 2022 business year. Sales growth was mainly driven by higher prices across almost all segments due to an increase in raw materials and energy prices. The Materials and Chemicals segments implemented the highest price increases. Currency effects considerably supported the positive sales development. Portfolio effects in the Surface Technologies segment from the acquisition of a majority shareholding in BASF Shanshan Battery Materials Co., Ltd. as of August 31, 2021, also contributed to the sales increase. This more than compensated for negative portfolio effects in the Industrial Solutions segment, mainly from the sale of the global pigments business as of June 30, 2021. Significantly lower volumes overall dampened sales growth in the BASF Group. Volumes development was primarily driven by lower sales in the Surface Technologies and Chemicals segments.
Currency impact
Our competitiveness on global markets is influenced by fluctuations in exchange rates. For BASF’s sales, opportunities and risks arise in particular when the U.S. dollar exchange rate fluctuates. A full-year appreciation of the U.S. dollar against the euro by $0.01 would increase the BASF Group’s EBIT by around €30 million, assuming other conditions remain the same. On the production side, we counter exchange rate risks by producing in the respective currency zones.
Sales
€275 million
EBIT
€30 million
Financial currency risks result from the translation of receivables, liabilities and other monetary items in accordance with IAS 21 at the closing rate into the functional currency of the respective Group company. In addition, we incorporate planned purchase and sales transactions in foreign currencies in our financial foreign currency risk management. If necessary, these risks are hedged using derivative instruments.