BASF achieves strong earnings again despite persistently high raw material and energy prices

● Sales rose 13% to EUR 23 billion

● EBIT before special items was 3 billion euros, the same as the previous year

● Net income of EUR 1 billion, up 23% year-on-year

● Cash flow from operating activities was EUR 2 billion, which was lower than a year earlier (Q2 2021: EUR 5 billion)

● Outlook for 2022: Sales raised to between 86 billion and 89 billion euros, EBIT before special items to between 8 billion and 2 billion euros

"Despite continued high raw material and energy prices, we once again achieved strong earnings in the second quart.

BASF Group sales in the second quarter increased by 2 billion euros compared to the same period last year to 23 billion eur.

EBIT before special items was 3 billion euros, a strong level for the same period last ye.

EBIT rose by EUR 34 million to EUR 4 billi.

Cash flow in the second quarter of 2022

Cash flow from operating activities in the second quarter of 2022 was EUR 2 billion, down EUR 3 billion year-on-ye.

Performance of various business areas in the second quarter of 2022

Compared with the second quarter of 2021, sales in the Chemicals business area increased significantly by 22% to 3 billion euros, with the next two business units contributing to this grow.

Sales in the Materials business area increased significantly by 29 percent year-on-year to EUR 9 billi.

In the second quarter of 2022, the Industrial Solutions business area recorded sales of EUR 6 billion, a significant increase of 11% year-on-year, mainly due to strong sales growth in the Performance Chemicals business unit, while sales in the Dispersions and Resins business unit also increas.

Sales in the Surface Technology business area were 4 billion euros, down 6 percent year-on-ye.

Sales in the Nutrition & Care business area increased by 39% compared to the second quarter of 2021 to EUR 1 billion, thanks to strong growth in its next two business segmen.

Sales in the Agricultural Solutions business area amounted to EUR 5 billion, a significant improvement compared to the second quarter of 2021, with an increase of 2

Sales in the " Other " business area increased significantly year-on-year to EUR 1 billion, mainly due to higher sales in commodity tradi.

BASF Group Outlook 2022

The assessment of the global economic environment for 2022 is adjusted as follows (previous BASF Group Report 2021 forecasts in parentheses; current growth assumptions have been rounded):

● Global GDP growth: +5% (+8%)

● Industrial production growth: +0% (+8%)

● Chemical production growth: +5% (+5%)

● Average price of EUR/USD: 1 EUR/USD 07 (1 EUR/USD 15)

● Brent average price: $110 per barrel ($75 per barrel)

BASF expects the global economy to gradually slow down in the second half of this year, with Europe being the first to bear the bru.

Based on the positive business development in the first half of 2022 and the above assumptions, the BASF Group's forecast for sales and earnings for the fiscal year 2022 is adjusted as follows (previous forecasts in the BASF Group Report 2021 are in parenthese.

● Sales are expected to be between EUR 86 billion and EUR 89 billion (between EUR 74 billion and EUR 77 billion)

● EBIT before special items is expected to be between EUR 8 billion and EUR 2 billion (between EUR 6 billion and EUR 2 billion)

● Return on capital employed (ROCE) expected to be between 15% and 10% (between 14% and 16%)

● CO2 emissions reduced to between 14 million and 14 million tons (16 million to 26 million tons)

Developments at this stage, especially in Europe, caused by factors such as the war in Ukraine and its impact on energy, raw material prices and raw material availability, will likely create additional headwinds that deviate from the above assumptio.