BASF Report 2021 Management’s Report – Actual Development Compared With Outlook for 2021 68 Capex forecast for the BASF Group Sales in the Nutrition & Care segment were considerably above the prior-year figure, exceeding our forecast of slight growth. This was In 2021, we invested a total of €3.4 billion in capital expenditures mainly due to higher price levels, after we had assumed lower prices (capex), excluding additions from acquisitions, IT investments, res- in February. We increased volumes in both divisions as expected. toration obligations and right-of-use assets arising from leases. The EBIT before special items declined significantly in 2021, falling short figure forecast in February 2021 was €3.6 billion. - of our expectations of a slight increase. The decrease was attri butable to lower earnings contributions from both divisions. This was mainly due to lower margins as a result of higher raw materials Sales, earnings and ROCE forecast for the segments and energy prices as well as higher fixed costs, primarily from higher bonus provisions. ROCE also declined considerably in line with We considerably increased sales in the Chemicals segment in earnings development in the segment. Our forecast had assumed a 2021, after only forecasting a slight increase in sales at the begin- considerable increase. ning of the year. Both divisions raised prices, significantly exceeding the price increases assumed in February as a result of extraordinary Sales in the Agricultural Solutions segment rose considerably, not supply bottlenecks in the markets. We increased volumes as just slightly as forecast. Higher sales volumes and prices exceeded expected. The segment considerably increased EBIT before special negative currency effects to a greater extent than we had anticipated. items and ROCE, in line with the forecast. Contrary to our forecast of a slight increase, EBIT before special items was considerably below the prior-year level. The positive sales The Materials segment recorded a considerable improvement in development was unable to compensate for an increase in fixed sales, EBIT before special items and ROCE as forecast. costs, mainly from higher bonus provisions, higher raw materials prices and logistics costs, and a low-margin product mix. Based on Sales in the Industrial Solutions segment rose considerably in the development of earnings, we were only able to increase ROCE 2021, exceeding our expectations of a slight decline. This was slightly, against our assumption of a considerable increase. largely driven by volume growth. Against our assumptions, this more than compensated for the negative effects from the divestiture of the We significantly improved sales and EBIT before special items in global pigments business. The segment’s volume growth also led to Other as forecast. considerably higher EBIT before special items, contrary to our fore- For more information on our forecast for 2022, see page 148 onward cast of a slight decline. ROCE was significantly above the prior- year For more information on investments, see page 38 onward level, as expected. The Surface Technologies segment achieved significant sales growth, exceeding our forecast from February, in which we had assumed only a slight incr ease in sales. This primarily resulted from higher precious metal prices, which rose more strongly than expected. The significant recovery in EBIT before special items and ROCE materialized as expected.