BASF SE / DE000BASF111

BASF SE: BASF sets new direction with corporate strategy and maintains high level of shareholder distributions

EQS-Ad-hoc: BASF SE / Key word(s): Dividend


26-Sep-2024 / 07:18 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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BASF sets new direction with corporate strategy and maintains high level of shareholder distributions Total shareholder distributions via dividends and share buybacks to amount to at least €12 billion between 2025 and 2028 with annual dividend of at least €2.25 per share New financial targets for EBITDA before special items (€10 billion to €12 billion in 2028) and cumulative free cash flow (more than €12 billion for 2025 to 2028) Unlocking value through active portfolio management Ludwigshafen – September 26, 2024 – BASF is setting a new direction with its corporate strategy and has defined financial targets for 2025 to 2028 and updated its dividend policy accordingly. In the mid-term, BASF is committed to keeping the overall distribution to shareholders on the level of the last years through a combination of dividends and share buybacks. In this way, BASF aims to distribute at least €12 billion to shareholders from 2025 to 2028. Specifically, the company will pay a dividend of at least €2.25 per share (2023: €3.40) or around €2 billion each year. This will already apply to the dividend for the 2024 business year to be paid out in 2025. The aggregate dividend payment of around €8 billion in the four-year period will be complemented by share buybacks, which are targeted from 2027 onward at the latest and are expected to amount to around €4 billion. BASF’s strong balance sheet and cash flows will support the payment of dividends and the execution of share buybacks. Furthermore, the company will bring down capital expenditures well below depreciation from 2026 onward, i.e., after the startup of the Zhanjiang Verbund site in China as of 2025. The updated dividend policy is underpinned by the following new financial targets of BASF. EBITDA before special items is expected to be €10 billion to €12 billion in 2028 in mid to upcycle conditions. The cumulative free cash flow for 2025 to 2028 is expected to be more than €12 billion. The targeted return on capital employed (ROCE) for 2028 is around 10%. As part of its new corporate strategy, BASF has also defined clear portfolio roles for its businesses and distinguishes between core and standalone businesses. The Chemicals, Materials, Industrial Solutions and Nutrition & Care segments are the core businesses, while Environmental Catalyst and Metal Solutions, Battery Materials, Coatings and Agricultural Solutions are the standalone businesses. In the coming years, BASF will focus on strengthening and profitably growing its core businesses. For the standalone businesses, BASF will pursue active portfolio options where this adds value for BASF and its shareholders. As a next step, BASF is preparing a divestment process for its decorative paints business in Brazil. In 2024, BASF expects to receive a total cash inflow of approximately €2 billion from its exit from the oil and gas business as a result of earlier portfolio management measures. Further information BASF will publish a news release with further details about its corporate strategy at 9:00 CEST today. A live webcast of the keynote and the subsequent Q&A session will be offered from 12:30 CEST onward at www.basf.com/CMD2024. Contact
Dr. Stefanie Wettberg
Investor Relations
[phone]
[e-mail] Jens Fey
Corporate Media Relations
[phone]
[e-mail]  

End of Inside Information

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26-Sep-2024 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

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Language:	English
Company:	BASF SE
	Carl-Bosch-Straße 38
	67056 Ludwigshafen
	Germany
Phone:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.basf.com
ISIN:	DE000BASF111, DE000A0JRFB0, Börse Dublin, Frankfurter Wertpapierbörse, DE000A0JRFA2, Börse Dublin, Frankfurter Wertpapierbörse, DE000A0JQF26, Börse Dublin, Frankfurter Wertpapierbörse, DE000A0EUB86, Frankfurter Wertpapierbörse, DE0008846718, Frankfurter Wertpapierbörse, DE000A0XFK16, Börse Luxemburg, Frankfurter Wertpapierbörse, XS0420401779, Börse Luxemburg, XS0412154378, Börse Luxemburg, Frankfurter Börse, DE000A0T4DU7,Börse Luxemburg, Frankfurter Börse, CH0039943292, Swiss Exchange (SWX), CH0039943383, Swiss Exchange (SWX), DE000A0TKBM, Börse Luxemburg, Frankfurter Börse, XS0414672070, Börse Luxemburg, ,
WKN:	BASF11, WKN A0JRFB, Börse Dublin, Frankfurter Wertpapierbörse, , WKN A0JRFA, Börse Dublin, Frankfurter Wertpapierbörse, , WKN A0JQF2, Börse Dublin, Frankfurter Wertpapierbörse, , WKN A0EUB8, Frankfurter Wertpapierbörse, , WKN 884671, Frankfurter Wertpapierbörse, , WKN A0XFK1, Börse Luxemburg, Frankfurter Wertpapierbörse, , WKN A0XFHJ, Börse Luxemburg, , WKN A0T6EG, Börse Luxemburg, Frankfurter Wertpapierbörse, , WKN A0T4DU, Börse Luxemburg, Frankfurter Wertpapierbörse, , WKN 3994329, Swiss Exchange (SWX), , WKN 3994338, Swiss Exchange (SWX), , WKN A0TKBM, Börse Luxemburg, Frankfurter Wertpapierbörse, , WKN A0T65R, Börse Luxemburg,
Indices:	DAX, EURO STOXX 50
Listed:	Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange; London, SIX
EQS News ID:	1995873

End of Announcement	EQS News Service

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1995873  26-Sep-2024 CET/CEST