Basf(BASFY) - 2023 Q2 - Earnings Call Presentation

Q2 2023 Performance - BASF Group's sales decreased by 24.7% to €17305 million compared to Q2 2022[11, 22] - EBIT before special items declined by 57% to €1007 million compared to Q2 2022[12, 22] - Net income decreased by 76.1% to €499 million compared to Q2 2022[22] - Operating cash flow increased by 77.4% to €2178 million compared to Q2 2022[22] Market Environment - Global chemical production stagnated, with a growth rate of 0.3% in Q2 2023 compared to 1.5% in Q2 2022[6] - Global GDP grew by 2.5% in Q2 2023 compared to 3.0% in Q2 2022[6] - Global industrial production grew by 0.5% in Q2 2023 compared to 2.7% in Q2 2022[6] Strategic Initiatives - Capital expenditure for 2023 reduced by €0.6 billion to approximately €5.7 billion[50] - Cost savings program aims for >€500 million annual savings by the end of 2024[49] - Adaptation of Verbund structures in Ludwigshafen aims for >€200 million annual cost savings by the end of 2026[49] Asset and Debt - Total assets decreased by €1 billion to €83.5 billion[47] - Net debt increased by €4 billion to €20.2 billion[47] - Equity ratio is 47.1%, down from 48.4% on Dec 31, 2022[23, 47]