International. BASF is setting a new strategic direction with the aim of delivering superior propositions to its customers. The company seeks to grow profitably and create shareholder value.
"Our ambition is to be the chemical company of choice that enables the green transformation of our customers," said Dr. Markus Kamieth, Chairman of the Board of Management of BASF, during his keynote address at the Capital Markets Day in Ludwigshafen.
"Our strong and broad portfolio of chemical businesses is what makes BASF relevant to customers globally, spanning various industries. Our independent businesses serve specific industries and are less connected to our integrated value chains. Going forward, we will unlock the value of these businesses."
BASF will pay a dividend of at least €2.25 per share (in 2023 it was €3.40) or around €2 billion annually, which will already apply to the 2024 fiscal dividend to be paid in 2025. The company plans a total dividend payout of approximately 8 billion euros during this period, complemented by share buybacks expected to begin from 2027 and which could amount to around 4 billion euros.
"We will focus even more on cash flow. We will strengthen capital discipline with lower capital expenditures and continue our cost-saving programs," commented Dr. Dirk Elvermann, BASF's Chief Financial Officer. In the medium term, the company is committed to maintaining total distribution to shareholders at the levels of recent years through a combination of dividends and share buybacks, with the goal of distributing at least 12,000 million euros between 2025 and 2028.
The new dividend policy is supported by updated financial targets, including an expected EBITDA before special items of between €10 billion and €12 billion in 2028 and a cumulative free cash flow for 2025-2028 of more than €12 billion. The company has also presented its new "Winning Ways" strategy based on four strategic levers: Focus, Accelerate, Transform and Win.
BASF is redefining its approach to portfolio management, differentiating between core businesses and standalone businesses that serve specific industries. Effective January 1, 2025, the Environmental Catalysts, Metal Solutions and Battery Materials businesses will be reported as separate divisions in the Surface Technologies segment.
BASF's core businesses, which include Chemicals, Materials and Industrial Solutions, have significant advantages over the competition, generating value through the efficient use of resources and operational excellence. In 2023, these businesses generated sales of approximately 6,000 million euros with innovative products launched in the last five years.
