Full-Year 2021 Reporting on February 25, 2022
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We are pleased to send you the latest edition of BASF’s Investor Relations Magazine. We publish this electronic journal four times a year immediately after the reporting dates. You will continue to receive important news releases by e-mail as soon as they are published.
Your Investor Relations Team
BASF achieves strong earnings growth in full year 2021
- Sales: €78.6 billion (plus 33 percent)
- EBIT before special items: €7.8 billion (plus 118 percent)
- Cash flows from operating activities: €7.2 billion (plus 34 percent); Free cash flow: €3.7 billion (plus 63 percent)
- Proposed dividend of €3.40 per share for the 2021 business year (2020: €3.30 per share)
- Sales of between €74 billion and €77 billion expected
- EBIT before special items of between €6.6 billion and €7.2 billion expected
- ROCE projected to be between 11.4 percent and 12.6 percent
- Anticipated CO2 emissions of between 19.6 million metric tons and 20.6 million metric tons
BASF on the capital market
Proposed dividend of €3.40 per share
The Board of Executive Directors and the Supervisory Board will propose a dividend payment of €3.40 per share to the Annual Shareholders’ Meeting. BASF stands by its ambitious dividend policy of increasing the per-share dividend each year and plans to pay out €3.1 billion1 to the shareholders of BASF SE.
Based on the year-end share price for 2021, BASF shares offer a high dividend yield of around 5.5%. BASF is part of the DivDAX share index, which contains the 15 companies with the highest dividend yield in the DAX 40.
Share buyback program of up to €3 billion
In light of the positive business development and the gains on divestitures in the course of 2021, the Board of Executive Directors of BASF SE resolved on a share buyback program on January 4, 2022. The program amounts to up to €3 billion, started on January 11, 2022, and shall be concluded by December 31, 2023, at the latest, subject to a renewed authorization to repurchase own shares by the Annual Shareholders’ Meeting of BASF SE on April 29, 2022. BASF SE will cancel all repurchased shares and reduce the share capital accordingly.
The share buyback program is based on the authorization by the Annual Shareholders’ Meeting of BASF SE on May 12, 2017 authorizing the Board of Executive Directors to purchase up to 10% of the issued shares at the time of the resolution until May 11, 2022. BASF plans to propose to the 2022 Annual Shareholders’ Meeting a renewed authorization to buy back own shares.
In addition to its progressive dividend policy, share buybacks are another tool that BASF uses to create value for its shareholders.
Broad base of international shareholders
With over 800,000 shareholders, BASF is one of the largest publicly owned companies with a high free float. An analysis of the shareholder structure carried out at the end of 2021 showed that, at around 19% of share capital, the United States and Canada made up the largest regional group of institutional investors. Institutional investors from Germany accounted for around 9%. Institutional investors from the United Kingdom and Ireland hold 6% of BASF shares, while investors from the rest of Europe hold a further 13% of capital. Approximately 39% of the company’s share capital is held by private investors, nearly all of whom reside in Germany. BASF is therefore one of the DAX companies with the largest percentage of private shareholders.
BASF – a sustainable investment
BASF maintained its Prime status in the ISS ESG rating developed by Institutional Shareholder Services and is among the top 7% of the companies assessed. BASF received special recognition for addressing key sustainability issues such as environmental management, energy efficiency and business ethics with a comprehensive set of measures and processes.
In Sustainalytics’1 ESG Risk Ratings, BASF is ranked among the top 10% of companies in diversified chemicals. It was commended for the fact that its sustainability targets are reflected in the compensation for the Board of Executive Directors, underlining strong overall management of environmental, social and governance matters.
BASF was again recognized as a Global Compact LEAD company by the U.N. Global Compact in 2021. BASF consistently supports the U.N. Global Compact and its 10 principles of responsible business conduct and the Sustainable Development Goals.
BASF was among the top 10% in the World Benchmarking Alliance’s (WBA) Food and Agriculture Benchmark, which assessed 350 companies from the food and agricultural sector on sustainable business practices.