BASF Report 2021 Management’s Report – Outlook 2022 149 a Forecast by segment forecasting a slight decline in the segment’s EBIT before special Million € items compared with 2021. This will primarily result from the Sales EBIT before special items ROCE decrease in the Dispersions & Resins division, largely due to the 2021 Forecast 2022 2021 Forecast 2022 2021 Forecast 2022 divestiture of the pigments business. The Performance Chemicals Chemicals 13,579 2,974 32.9% division will likely see significant growth in EBIT before special items Materials 15,214 2,418 22.8% mainly as a result of higher sales volumes and stronger margins. However, this will not be able to fully compensate for lower earnings Industrial Solutions 8,876 1,006 15.2% in the Dispersions & Resins division. Surface Technologies 22,659 800 5.6% In the Surface Technologies segment, we are forecasting consid- Nutrition & Care 6,442 497 8.2% erably lower sales in 2022, primarily as a result of lower precious Agricultural Solutions 8,162 715 4.5% metal prices in the Catalysts division. This will be partly offset by Other 3,666 –643 – – higher volumes in both divisions. The segment’s EBIT before special items is expected to decline slightly. We anticipate considerably BASF Group 78,598 €74 billion–€77 billion 7,768 €6.6 billion–€7.2 billion 13.5% 11.4%–12.6% higher EBIT before special items in the Coatings division but a con- siderable year-on-year decrease in EBIT before special items in the At prior-year level: no change (+/–0.0%) | Slight increase/decrease: “slight” represents a change of 0.1%–5.0% for sales; 0.1%–10.0% for earnings; 0.1 to 1.0 percentage points for ROCE Catalysts division due to lower contributions from precious metal | Considerable increase/decrease: “considerable” represents a change of 5.1% or higher for sales; 10.1% or higher for earnings; more than 1.0 percentage points for ROCE. trading. a For sales, “slight” represents a change of 0.1%–5.0%, while “considerable” applies to changes of 5.1% and higher. “At prior-year level” indicates no change (+/–0.0%). For earnings, “slight” means a change of 0.1%–10.0%, while “considerable” is used for changes of 10.1% and higher. “At prior-year level” indicates no change (+/–0.0%). At a cost of capital percentage of 9% for 2022, we define a change in ROCE of 0.1 to 1.0 percentage points as “slight,” a change of more than 1.0 percentage points as “considerable” and no change (+/–0.0 percentage points) as “at prior-year level.” For the Nutrition & Care segment, we expect considerable sales growth compared with 2021. We anticipate higher volumes in both The material opportunities and risks that could affect our forecast are For the Materials segment, we are forecasting slight sales growth in divisions and higher price levels overall, primarily due to the passing described under Opportunities and Risks on pages 151 to 160. 2022. Despite the strong recovery in 2021, this will be largely attri- on of higher raw materials prices and logistics and energy costs. butable to further volume growth in both divisions. Increased infla- This will be partly offset by portfolio effects from the sale of the pro- tionary pressures will be offset by efficiency gains. We anticipate duction site in Kankakee, Illinois. The segment’s EBIT before special Sales and earnings forecast for the segments lower prices due to a normalization of the market environment. EBIT items should be significantly above the prior-year level. We expect before special items in the Monomers division is expected to significantly higher earnings contributions from both divisions, mainly For the Chemicals segment in 2022, we expect sales to decline decrease considerably after strong margins in 2021 as a result of due to higher margins on the back of strong volume growth. considerably following very high prices in 2021 due to supply short- lower price levels and higher raw materials prices. In the Perfor- ages in the market. The decrease in 2022 will be driven by consid- mance Materials division, by contrast, we anticipate a considerable We are forecasting considerable sales growth in the Agricultural erably lower sales in the Petrochemicals division. We expect a increase in EBIT before special items due to the positive develop- Solutions segment. We will raise our sales prices and volumes in a normalization of the market situation, particularly in the United ment of sales volumes. However, this will only be able to partly continued challenging market environment, characterized by supply States, following the supply disruption caused by Winter Storm Uri compensate for the decline in the Monomers division. bottlenecks and high energy and raw materials prices. Based on the in January 2021. In the Intermediates division, we anticipate higher positive development of sales, we anticipate a strong improvement sales volumes driven mainly by amines and polyalcohols. Prices in We expect sales in the Industrial Solutions segment to be slightly in EBIT before special items. In 2022, we will continue to invest in the segment are expected to decline to a lower level while higher below the prior-year level. Higher volumes and continuing high price research and development and digitalization at a high level. raw materials prices will put pressure on margins. For both divisions, levels in both operating divisions will presumably not be able to we therefore anticipate a considerable decline in EBIT before special completely offset the negative portfolio effects from the divestiture Sales in Other are expected to be slightly above the 2021 level in items. of the global pigments business as of June 30, 2021. We are 2022. This will be mainly attributable to sales growth in commodity