BASF Report 2021 Management’s Report – Financial Position 64 The €111 million decrease in other noncurrent liabilities largely Net debt Maturities of financial indebtedness resulted from lower negative fair values of derivatives. Million € Million € December 31, December 31, 2022 3,420 2021 2020 Other provisions rose by €298 million, mainly due to higher environ- Noncurrent financial indebtedness 13,764 15,819 2023 2,208 mental provisions. 2024 1,280 + Current financial indebtedness 3,420 3,395 At €20,081 million, current liabilities were €3,801 million above the Financial indebtedness 17,184 19,214 2025 1,892 figure as of December 31, 2020. This was primarily due to the – Marketable securities 208 207 2026 1,177 €2,535 million increase in trade accounts payable, largely as a result – Cash and cash equivalents 2,624 4,330 2027 and beyond 7,207 of positive business development. In addition, current provisions Net debt 14,352 14,677 rose by €1,110 million compared with the previous year, primarily BASF enjoys good credit ratings, especially compared with com- from higher provisions for bonus payments and for rebates. Other petitors in the chemical industry. Standard & Poor’s most recently liabilities increased by €239 million. confirmed its rating for BASF of A/A-1/outlook stable on January 6, Off-balance sheet obligations 2022. Moody’s most recently confirmed BASF’s A3/P-2/outlook Current financial indebtedness was on a level with the prior year- stable rating on January 5, 2022. Fitch’s rating of A/F1/outlook end. This was attributable to the above-mentioned reclassification of Off-balance sheet obligations mainly relate to long-term purchase stable from June 11, 2021, also remained unchanged. three bonds and a loan in the aggregate amount of around €2.2 bil- obligations for raw materials. We also concluded long-term supply lion from noncurrent to current financial indebtedness. The reduction agreements for green power in 2021. In addition, obligations exist in We have solid financing. Corporate bonds form the basis of our in commercial paper at BASF SE (around €1 billion) and the sched- connection with initiated or planned investment projects. medium to long-term debt financing. These are issued in euros and uled repayment of a eurobond (€1 billion) and a loan (€150 million) For more information, see Note 25 to the Consolidated Financial Statements on page 263 and the other currencies with different maturities as part of our €20 billion had an offsetting effect. forecast from page 145 onward debt issuance program. The goal is to create a balanced maturity profile, diversify our financing and optimize our debt capital financing Tax liabilities rose by €173 million compared with the previous year. conditions. Financing policy and credit ratings Liabilities of disposal groups amounted to €61 million. For short-term financing, we use BASF SE’s global commercial Our financing policy aims to ensure our solvency at all times, limiting paper program, which has an issuing volume of up to $12.5 billion. Net debt declined by €325 million compared with December 31, the risks associated with financing and optimizing our cost of capi- As of December 31, 2021, commercial paper with a carrying amount 2020, to €14,352 million. tal. We preferably meet our external financing needs on the interna- of €248 million was outstanding under this program. A firmly com- For more information on the composition and development of individual asset items, see the Notes to tional capital markets. mitted, syndicated credit line of €6 billion with a term until 2026 the Consolidated Financial Statements from page 200 onward covers the repayment of outstanding commercial paper. It can also For more information on the development of the balance sheet, see the Ten-Year Summary We strive to maintain a solid A rating, which ensures unrestricted be used for general company purposes. The credit line, as well as a on page 288 access to financial and capital markets. Our financing measures are short-term credit line of €3 billion that expired in the second quarter aligned with our operational business planning as well as the com- of 2021, were not used at any point in 2021. Our external financing pany’s strategic direction and also ensure the financial flexibility to is therefore largely independent of short-term fluctuations in the take advantage of strategic options. credit markets.