BASF Report 2021 Management’s Report – Results of Operations 57 special income totaling €120 million, especially from the sale of our EBITa, b, c ROCE production site in Kankakee, Illinois, the Coatings division’s precision Million € Million € micro chemicals business and our share in the condensate splitter in 2021 2020 Port Arthur, Texas. Other items led to special charges in the total 2021 7,677 EBIT of BASF Group 7,677 –191 amount of €27 million. 2020 –191 – EBIT of Other –641 –1,203 For the definition of special items, see page 43 2019 4,201 EBIT of the segments 8,317 1,012 2018 5,974 Cost of capital basis of segments, 61,579 60,111 7,587 average of month-end figures 2017 Special items ROCE % 13.5 1.7 Million € a EBIT for 2019 has been restated to reflect the reclassification of income from non-integral companies 2021 2020 accounted for using the equity method to net income from shareholdings. Figures for the years 2017 and 2018 have not been restated. b EBIT before special items for 2018 was reduced by the share attributable to construction chemicals Restructuring measures –99 –952 activities due to their presentation as discontinued operations. Figures for 2017 have not been restated. Capital employed c EBIT for 2017 was reduced by the share attributable to oil and gas activities due to their presentation as Integration costs –85 –157 discontinued operations. Million € 2021 2020 Divestitures 120 –76 We use the indicator return on capital employed (ROCE). ROCE Intangible assets 13,143 14,249 Other charges and income –27 –2,566 was 13.5%, after 1.7% in the previous year. The increase in ROCE + Property, plant and equipment 19,280 20,210 Total special items in EBIT –91 –3,751 1 was primarily due to considerably higher EBIT. + Integral investments accounted for using the 1,682 1,395 For more information on the calculation of ROCE, see page 42 equity method At €7,677 million, EBIT for the BASF Group in 2021 was consider- The calculation of EBIT as part of our statement of income is shown in the Consolidated Financial + Inventories 11,459 10,469 ably above the previous year, which was impacted by high impair- Statements on page 194 + Accounts receivable, trade 11,588 9,379 ments. This figure includes income from integral companies + Current and noncurrent other receivables a 3,908 3,149 accounted for using the equity method, which rose by €455 million and other assets to €675 million. This was mainly attributable to the business-related + Assets of disposal groups 520 1,260 increase in the earnings contributed by BASF-YPC Company Ltd., Cost of capital basis of segments, Nanjing, China, which rose by €343 million. average of month-end figures 61,579 60,111 + Deviation from cost of capital basis at 2,688 –3,948 closing rates as of December 31 + Assets not included in cost of capital 23,115 24,129 Assets of the BASF Group as of December 31 87,383 80,292 a Including customer/supplier financing and other adjustments 1 For more information on net assets, see page 61 onward