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Last Update: 03/12/2009
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Part of the audited Consolidated Financial Statements and Management´s Analysis

Cash flow

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Consolidated Statements of Cash Flows (million €)

 

 

2008

2007

Net income

2,912

4,065

Depreciation and amortization of intangible assets,
property, plant and equipment and financial assets

3,180

2,947

Changes in working capital

(1,339)

(999)

Miscellaneous items

270

(206)

Cash provided by operating activities

5,023

5,807

 

 

 

Payments related to property, plant and equipment
and intangible assets

(2,521)

(2,562)

Acquisitions/divestitures

(564)

(536)

Financial investments and other items

(375)

(514)

Cash used in investing activities

(3,460)

(3,612)

 

 

 

Capital increases/repayments, share repurchases

(1,573)

(1,749)

Changes in financial liabilities

4,189

1,137

Dividends

(2,157)

(1,624)

Cash provided by (used in) financing activities

459

(2,236)

 

 

 

Net changes in cash and cash equivalents

2,022

(41)

Cash and cash equivalents as of beginning of year
and other changes

754

808

Cash and cash equivalents as of end of year

2,776

767

Cash provided by operating activities

Despite an increase in net working capital in the first three quarters, we again generated a high level of cash from operating activities of €5,023 million in 2008 compared with €5,807 million in 2007. Miscellaneous items reflect the reclassification of equity income and minority interests. In 2007, miscellaneous items also contained the elimination of non-cash income resulting from the German Corporate Tax Reform.

Cash flow (billion €)

Cash flow (billion €) (bar chart)

1 Cash provided by operating activities minus payments related to property, plant and equipment and intangible assets, in 2005 excluding external financing of pension obligations (CTA)

Cash used in investing activities

At €3,460 million, net expenses were slightly lower than in the previous year.

In 2008, expenditures for acquisitions totaled €637 million compared with €635 million in 2007 and were primarily related to the purchase of Revus Energy ASA, Stavanger, Norway.

We generated proceeds of €73 million from divestitures, in particular from the sale of the pharmaceuticals manufacturing business in Shreveport, Louisiana.

In 2008, payments related to property, plant and equipment and intangible assets amounted to €2,521 million, and were accordingly below the corresponding level of depreciation and amortization.

Free cash flow in 2008 was €2,502 million compared with €3,245 million in 2007.
More information on additions to property, plant and equipment is in the chapter “BASF Segments”

Financial investments and miscellaneous items resulted in a net cash outflow of €375 million in 2008. Payments were primarily related to the purchase of 15.2% of the shares of Ciba Holding AG as well as capital contributions to Nord Stream AG and OAO Severneftegazprom. Cash inflows resulted from the repayment of loans, in particular by OAO Severneftegazprom, and the sale of assets.

Cash provided by financing activities

Cash provided by financing activities amounted to €459 million in 2008 compared with minus €2,236 million in 2007. This was primarily due to an increase in financial indebtedness of €4,412 million compared with the previous year to €14,514 million at the end of 2008. Net debt rose by €2,403 million to €11,738 million.

We spent a total of €1,618 million to buy back 37.9 million shares at an average price of €42.70 per share.
For further information on the share buyback program, see also Note 17 to the Consolidated Financial Statements

We paid out €2,157 million in dividends and profit transfers in 2008. Of this amount, €1,831 million or €3.90 per share (before the stock split) was to shareholders of BASF SE for fiscal year 2007. Minority interests in proportionally or fully consolidated companies received €326 million.

CONSOLIDATED STATEMENTS OF CASH FLOWS


  • Cash provided by operating activities again high at €5 billion
  • Free cash flow of €2,502 million compared with €3,245 million in 2007
  • €2.5 billion spent on property, plant and equipment and intangible assets
  • Expenditures on acquisitions of €637 million; income from divestitures of €73 million

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