17412612 2023-01-01 2023-12-31 17412612 2023-01-01 2023-12-31 1 17412612 2023-01-01 2023-12-31 1 17412612 2023-01-01 2023-12-31 1 17412612 2023-01-01 2023-12-31 3 17412612 2023-01-01 2023-12-31 4 17412612 2023-01-01 2023-12-31 5 17412612 2023-01-01 2023-12-31 2 17412612 2023-12-31 17412612 2022-01-01 2022-12-31 17412612 2022-12-31 17412612 2021-12-31 fsa:ContributedCapitalMember 17412612 2021-12-31 fsa:RetainedEarningsMember 17412612 2021-12-31 fsa:ProposedDividendRecognisedInEquityMember 17412612 2021-12-31 17412612 2022-01-01 2022-12-31 fsa:ContributedCapitalMember 17412612 2022-01-01 2022-12-31 fsa:RetainedEarningsMember 17412612 2022-01-01 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 17412612 2022-12-31 fsa:ContributedCapitalMember 17412612 2022-12-31 fsa:RetainedEarningsMember 17412612 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 17412612 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 17412612 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 17412612 2023-01-01 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 17412612 2023-12-31 fsa:ContributedCapitalMember 17412612 2023-12-31 fsa:RetainedEarningsMember 17412612 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember xbrli:pure iso4217:DKK BASF A/S Kalvebod Brygge 45, 1 1560 Copenhagen 17412612 Mark Meie BASF A/S Kalvebod Brygge 45, 1 DK 1560 Copenhagen 17412612 Copenhagen +45 32 66 07 00 https://www.basf.com/dk/en.htm KPMG Statsautoriseret Revisionspartnerselskab Dampfærgeve 28 DK 2100 Copenhagen 25578198 Statement by the Board of Directors and the Executive BoardThe Board of Directors and the Executive Board have today discussed and approved the annual report of BASF A/S for the financial year 1 January – 31 December 2023.The Annual Report has been prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2023 and of the results of the Company's operations for the financial year 1 January - 31 December 2023.Further, in our opinion, the Management's review gives a fair review of the development in the Company's activities and financial matters, of the results for the year and of the Company's financial position.We recommend that the annual report be approved at the annual general meeting. Copenhagen Mark Meie Jörg-Christian Steck Mark Meier Chairman Employee Representative Employee Representative Charlotte Breinhol Board Membe Managing Directo Jørgen Holm Bettina Nyborg To the shareholders of BASF A/S OpinionWe have audited the financial statements of BASF A/S for the financial year 1 January – 31 December 2023comprising income statement, balance sheet, statement of changes in equity and notes including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2023 and of the results of the Company's operations for the financial year 1 January – 31 December 2023 in accordance with the Danish Financial Statements Act. Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in theAuditor's responsibilities for the audit of the financial statements section of our report.We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management's responsibility for the financial statementsManagement is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements in Denmark will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of financial statement users made on the basis of these financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also— identify and assess the risks of material misstatement of the company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.— obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.— evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.— conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.— evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Statement on the Management's reviewManagement is responsible for the Management's review.Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. Copenhagen David Olafsson State Authorised Public Accountan Management's reviewFinancial highlightsKey figures in MDKK 2023 2022 2021 2020 2019Net sales 1.717,0 1.792,2 1.776,6 1.051,2 897,9Gross profit 368,7 366,1 359,4 422,4 408,4Operating profit/loss 45,6 3,8 -10,4 91,6 25,3Net financial income/expenses 23,6 0,8 0,9 -5,0 1,2Profit/loss for the year before tax 69,3 4,6 -9,5 86,6 24,1Profit/loss for the year 54,0 3,3 -7,7 67,4 18,5Inventories 217,0 313,9 235,4 329,6 377,0Accounts receivable 443,7 903,1 989,8 820,8 321,6Equity 418,3 1.064,3 1.061,0 1.133,7 1.066,3Total assets 744,6 1.323,0 1.336,2 1.258,5 1.184,2Invested capital 421,4 304,8 257,2 459,0 958,6Investments in property, plant, equipment 4,5 13,8 8,2 3,1 12,9Financial ratios2023 2022 2021 2020 2019Gross margin 21,5% 20,4% 20,2% 40,2% 45,5%Profit margin 2,7% 0,2% -0,6% 8,7% 2,8%Return on invested capital 12,6% 1,4% -2,9% 12,9% 2,6%Return on equity 7,3% 0,3% -0,7% 6,1% 1,8%Equity ratio 56,2% 80,4% 79,4% 90,1% 90,0%Development in activities and financial positionThe Company’s turnover of 1.717 MDKK in 2023 shows a slightly decrease of 75,2 MDKK compared to 2022 and this negative development is aligned with management's expectation expressed in the annual report 2022. The development in turnover was negatively impacted by declining sales volumes in some product segments which to some extend was offset by increased sales prices in other product segments.The company’s gross profit increased by 2,6 MDKK from 366,1 MDKK in 2022 to 368,7 in 2023.The profit before tax amounted to 69,3 MDKK compared to 4,6 MDKK in 2022 and is considered satisfactory.Different initiatives and measures during 2nd half of 2023 led to an reduction in inventory of 96,9 MDKK .(Inventory: 2023: 217,0 MDKK, 2022: 313,9 MDKK)In December 2023 the Company finalized a capital reduction and transferred 700 MDKK back to the Company's shareholder.Expected developmentIn 2023, the company's development was influenced by the uncertainties in global market trade and geopolitical factors. These challenges are anticipated to persist in 2024.The Company expect a declining net sale in 2024 of 6-8 % mainly within agricultural products where customers due to weather conditions has kept a high inventory from 2023 indirectly impacting sales negatively in 2024 and the distribution to customers in Estonia from 2024 will be handled by BASF UAB - Lithuania. Fixed costs are expected to have a stable development in 2024.The company anticipates a lower but still positive profit for 2024 compared to the profit achieved in 2023Special risksOperating risks The Company's main operating risk lies in being a raw material supplier to the export industry. The sale of agricultural products depends to a wide extent on the weather.The company closely follows developments in energy prices, interest and inflation and continuously takes measures to limitthe negative effects for the company. Above all, the price development of natural gas has a large impact on the group’s production costs.Financial risksThe parent company, BASF SE, manages the financial risks centrally and coordinates the Group's liquidity including financing and excess liquidity.Currency risksThe purchase and sale of goods are mainly carried out in DKK or EUR. As the Danish National Bank pegs the Danish Krone close to the euro, the currency risk is moderate. The Company, follows a policy to hedge currency where the net position exceeds the equivalent to 2 MEUR by using financial instruments such as forward exchange contracts, and those contracts are only entered into through the German parent company BASF SE. By the end of the fiscal year 2023, the Company had five forward exchange contracts.Interest rate risksThe Company's net interest-bearing position is interest-bearing deposits, which was a net receivable of 267 MDKK in 2023compared to a net receivable of 744 MDKK in 2022.The net interest-bearing debt is mainly designated in EUR and DKK.The Company does not hedge interest rate risks as these solely relate to the German parent company BASF SE's area of responsibility.Credit risksCredit risks in respect of financial assets equal the value included in the balance sheet.The Company's policy for undertaking credit risks entails that all major customers are credit rated regularly. Intellectual capital resourcesThe Company's products are based on high-technology production facilities. Production is performed in accordance with the GMP rules. The Company operates in a competitive market that is demanding in terms of product development, flexibility and quality. This calls for staff with thorough knowledge of the Company's business processes, products and customers. In addition, particular requirements for knowledge resources exist in relation to development of products.Employee turnover was approximately 9,6% in 2023.Research and development activitiesIn 2023 research and development activities were performed in close cooperation with the Parent Company.In 2023, the costs for R&D projects amounted to 3,6 MDKK (2022: 4,4 MDKK).At 31 December 2023, no such development projects have been found which fullfill the criteria for capitalisation and a following recognition in the Company's balance sheet.Energy price developmentThe Company has a relatively high energy consumption and is thus negatively affected by the volatile oil and gas prices. The decrease in energy prices in 2023 has led to a significant reduction in energy costs compare to 2022.Group structureThe Company is included in the consolidated financial statements of BASF SE, Ludwigshafen, Germany.A copy of the consolidated financial statements of the Group can be requested from BASF A/S.BASF SE, Carl-Bosch-Strasse 38, 67056 Ludwigshafen, Germany, Idnr. DE 149 145 247 is registered as owner of the share capital of 154.200 KDKK.Events after the balance sheet dateNo events materially affecting the assessment of the annual report have occurred after the balance sheet date Main activitiesBASF A/S is a subsidiary of BASF Societe Europe, Ludwigshafen, Germany. The Company's headquarter is situated in Copenhagen. The Company sells a broad range of chemical products from BASF's broad product range. The Company's customers are mainly industrial companies in Denmark.Companies that are active within plastic, paper, chemical and agricultural industry use BASF products.The site in Ballerup develops, formulates and produces vitamins for the food and pharmaceutical industries throughout the world. Marketing is effected through the BASF Group's worldwide network of agencies and sales companies. Reporting on Corporate Social Responsibility (cf. section 99a of the Financial Statements Act)The Company is included and follows BASF group guidelines with regards to to social responsibility, including environment, social and staff matters, anticorruption and bribery, climate and human.A reference to the description in the Group annual report for BASF SE for 2023 for CSR is therefore made.Downloads - BASF Report 2023Environmental performanceIn 2023, the overall company strategy was founded on environment, health and safety.Operations have been based on sound focus on environment, health and safety policies supporting the objectives that have been developed from the BASF Group's policy in these areas. https://www.basf.com/global/en/who-we-are/sustainability.htmlReport on underrepresented gender in Management (cf. section 99b of the Financial Statements Act)2023Top management bodyTotal number of members 3Underrepresented gender in %33,3%Other management levelsTotal number of members 6Underrepresented gender in %33,3%The Board consists of five members; two staff representatives and three members appointed by the General Meeting (two males and one female). The Board of Directors has decided that the target for the participation of the underrepresented gender in the appointed Board is 33%. In 2023, the appointed Board was represented by 33% females; thus, BASF has an equal distribution of genders on the Board of Directors.In 2023, the share of the underrepresented gender in other management layers was represented by 33%; thus, BASF has an equal distribution of genders in other management layers with a 2 out of 6 ratio.In addition to BASF’s global rule and requirements regarding Diversity and Inclusion at BASF, a local policy specifically for BASF A/Sis made with the intention to guide our actions and make our elections transparent. At BASF, we aim to ensure that diversity is fostered, and inclusion is lived.This policy states our clear intention, based on the belief that diversity and inclusion bring value to the company, allowing a diverse line of thoughts, increasing innovation and leading to better decision-making.We promote diversity in the selection and development of our leaders. We have set a global target to promote female leadership and aim to increase the proportion of women in leadership positions to 30% by 2030. We have made important progress toward this and continually review our target.BASF is committed to gender balance thus the global proportion of women in leadership positions is to mirror the proportion of women in the global company workforce. BASF constantly and continuously sets itself global quantitative goals for increasing the percentage of women in leadership positions.Measurement tool as internal control approach enable our management to monitor progress toward this target. The systematic advancement of women is an integral part of our process for selecting senior executives and is regularly addressed in strategic dialogs with the divisions at the level of the Board of Executive Directors and in the Board’s strategic talent discussions. In addition, we offer various opportunities to help female executives strengthen their network and increase their visibility at senior executive level.The Company has a gender policy to increase underepresented gender at all management levels https://www.basf.com/global/en/careers/why-join-basf/diversity.htmlhttps://www.basf.com/global/en/careers/why-join-basf/diversity/women-in-basf.html 3 0.333 6 0.333 The Board consists of five members; two staff representatives and three members appointed by the General Meeting (two males and one female). The Board of Directors has decided that the target for the participation of the underrepresented gender in the appointed Board is 33%. In 2023, the appointed Board was represented by 33% females; thus, BASF has an equal distribution of genders on the Board of Directors. In 2023, the appointed Board was represented by 33% females; thus, BASF has an equal distribution of genders on the Board of Directors. In 2023, the share of the underrepresented gender in other management layers was represented by 33%; thus, BASF has an equal distribution of genders in other management layers with a 2 out of 6 ratio.In addition to BASF’s global rule and requirements regarding Diversity and Inclusion at BASF, a local policy specifically for BASF A/Sis made with the intention to guide our actions and make our elections transparent. At BASF, we aim to ensure that diversity is fostered, and inclusion is lived.This policy states our clear intention, based on the belief that diversity and inclusion bring value to the company, allowing a diverse line of thoughts, increasing innovation and leading to better decision-making.We promote diversity in the selection and development of our leaders. We have set a global target to promote female leadership and aim to increase the proportion of women in leadership positions to 30% by 2030. We have made important progress toward this and continually review our target.BASF is committed to gender balance thus the global proportion of women in leadership positions is to mirror the proportion of women in the global company workforce. BASF constantly and continuously sets itself global quantitative goals for increasing the percentage of women in leadership positions.Measurement tool as internal control approach enable our management to monitor progress toward this target. The systematic advancement of women is an integral part of our process for selecting senior executives and is regularly addressed in strategic dialogs with the divisions at the level of the Board of Executive Directors and in the Board’s strategic talent discussions. In addition, we offer various opportunities to help female executives strengthen their network and increase their visibility at senior executive level.The Company has a gender policy to increase underepresented gender at all management levels https://www.basf.com/global/en/careers/why-join-basf/diversity.htmlhttps://www.basf.com/global/en/careers/why-join-basf/diversity/women-in-basf.html In addition to BASF’s global rule and requirements regarding Diversity and Inclusion at BASF, a local policy specifically for BASF A/Sis made with the intention to guide our actions and make our elections transparent. At BASF, we aim to ensure that diversity is fostered, and inclusion is lived.This policy states our clear intention, based on the belief that diversity and inclusion bring value to the company, allowing a diverse line of thoughts, increasing innovation and leading to better decision-making.We promote diversity in the selection and development of our leaders. We have set a global target to promote female leadership and aim to increase the proportion of women in leadership positions to 30% by 2030. We have made important progress toward this and continually review our target.BASF is committed to gender balance thus the global proportion of women in leadership positions is to mirror the proportion of women in the global company workforce. BASF constantly and continuously sets itself global quantitative goals for increasing the percentage of women in leadership positions.Measurement tool as internal control approach enable our management to monitor progress toward this target. The systematic advancement of women is an integral part of our process for selecting senior executives and is regularly addressed in strategic dialogs with the divisions at the level of the Board of Executive Directors and in the Board’s strategic talent discussions. In addition, we offer various opportunities to help female executives strengthen their network and increase their visibility at senior executive level.The Company has a gender policy to increase underepresented gender at all management levels https://www.basf.com/global/en/careers/why-join-basf/diversity.htmlhttps://www.basf.com/global/en/careers/why-join-basf/diversity/women-in-basf.html This policy states our clear intention, based on the belief that diversity and inclusion bring value to the company, allowing a diverse line of thoughts, increasing innovation and leading to better decision-making.We promote diversity in the selection and development of our leaders. We have set a global target to promote female leadership and aim to increase the proportion of women in leadership positions to 30% by 2030. We have made important progress toward this and continually review our target.BASF is committed to gender balance thus the global proportion of women in leadership positions is to mirror the proportion of women in the global company workforce. BASF constantly and continuously sets itself global quantitative goals for increasing the percentage of women in leadership positions.Measurement tool as internal control approach enable our management to monitor progress toward this target. The systematic advancement of women is an integral part of our process for selecting senior executives and is regularly addressed in strategic dialogs with the divisions at the level of the Board of Executive Directors and in the Board’s strategic talent discussions. In addition, we offer various opportunities to help female executives strengthen their network and increase their visibility at senior executive level.The Company has a gender policy to increase underepresented gender at all management levels https://www.basf.com/global/en/careers/why-join-basf/diversity.htmlhttps://www.basf.com/global/en/careers/why-join-basf/diversity/women-in-basf.html https://www.basf.com/global/en/careers/why-join-basf/diversity.html Data ethics statement (cf. section 99d of the Financial Statements Act)The concept of data ethics is described as more far-reaching than compliance with applicable legislation and covers several categoriesthat must be considered for ethical processing of data.BASF A/S has chosen to categorize these within two general areas: the technical and the legal parameters.TechnicalThe focus is on the technical measures aimed, inter alia, at ensuring an adequate level of protection of data in order to avoid accessby unauthorised persons and potential data loss. At the same time, there is a great responsibility for the systems to deliver a data quality based on a high degree of validity and reliability, as well as monitoring and documentation of all the data involved.LawThe rules in e.g., the General Data Protection Regulation, the Marketing Practices Act and the Data Protection Act help to ensure lawful and secure processing of personal data and thus also avoid its misuse.The legislation thus sets the overall framework, but from a data ethics point of view, the rules cannot stand alone, and must be used in tandem and in harmony with a data ethics policy.The company has decided on 5 principles to followLawful processingBASF A/S must at all times process personal data lawfully and in accordance with the rules on the processing of personal data.IntegrityBASF A/S may not use data for purposes that can be categorized as manipulation, propaganda, fake news, repression, unjustified surveillance or other forms of purposes that could undermine data integrity.WiselyIf BASF A/S makes use of technologies that require data ethical considerations, there must at all times be an explanation of the purpose of this and a position on the ethical parameters.Value creationBASF A/S must at all times be able to account for the specific value creation achieved by processing data. As a starting point, BASF A/S should aim to ensure that the processing of personal data also, where possible, creates value for the processed party, such as customers, employees and business partners.Transparency There must be full transparency about the types of data BASF A/S processes and the purpose of the processing of these.In order to provide transparency, there must be evidence and, as far as possible, monitoring of the algorithms, systems, technologies and other forms of code that reasonably underlie data ethical considerations. Data securityIn BASF A/S, a high level of IT security is an essential parameter to ensure a stable and reliable operation of the company. The underlying IT security measures aim to protect BASF A/S’ data against, among other things, data breaches and other forms of unintended external access to data. BASF A/S’ strategy for data security is continuous testing and verification of the existing level followed by any repairs based on this. At the same time user access policies are also used to manage access to BASF A/S’ IT systems in order to ensure that the rights are automatically granted and removed when employees change roles or terminate employment with BASF A/S. 1717029000 1792235000 1261982000 1499998000 -86373000 73834000 368674000 366071000 6062000 4838000 139367000 163464000 175484000 189050000 246000 875000 13993000 13719000 45646000 3801000 26967000 5666000 3346000 4906000 69267000 4561000 15291000 1227000 53976000 3334000 246000 493000 246000 493000 24215000 28143000 33558000 36456000 9765000 9192000 2277000 5549000 69815000 79340000 5220000 2619000 5220000 2619000 75281000 82452000 87145000 100378000 9393000 43870000 120458000 169608000 216996000 313856000 167461000 203830000 276260000 699296000 0 5688000 7934000 15586000 689000 1838000 452344000 926238000 0 445000 669340000 1240539000 744621000 1322991000 154200000 1029200000 210128000 35128000 53976000 0 418304000 1064328000 8307000 6941000 8307000 6941000 58116000 50490000 222461000 164801000 11260000 0 26173000 36431000 318010000 251722000 318010000 251722000 744621000 1322991000 1029200000 31794000 0 1060994000 0 0 0 0 0 3334000 0 3334000 1029200000 35128000 0 1064328000 875000000 875000000 175000000 175000000 0 53976000 53976000 154200000 210128000 53976000 418304000 1Financial Statements 1 January - 31 DecemberACCOUNTING POLICIESThe annual report of BASF A/S is prepared in accordance with the provisions applying to reporting class C (large) entities under the Danish Financial Statements Act.Intercompany mergersWhen applying intercompany mergers, the uniting-of-interests method has been used.Foreign currency translationOn initial recognition, transactions in foreign currency are translated at the exchange rate of the transaction date.Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rate at the balance sheet date. Currency exchange rate differences occuring between the transaction date rate and the rate on the payment date are included in the income statement as financial income and expenses. Derivative financial instrumentsOn initial recognition in the balance sheet, derivative financial instruments are measured at cost and subsequently at fair value. Derivative financial instruments are recognised as other receivables or other payables.Changes in the fair value of derivative financial instruments classified as and complying with the requirements for hedging of the fair value of a recognised asset or a recognised with the requirements for the income statement together with changes in the value of the hedged asset or the hedged liability.For derivative financial instruments that do not fulfil the hedging requirements, the changes in the fair value are recorded in the income statement as financial income and expenses.Income statementRevenueRevenue from the sale of commodities and finished goods is included in the income statement when delivery and transfer of risk to the buyer has taken place.Revenue is included excluding VAT, duties and rebates in connection with the sale.Segment informationDisclosures are provided on business segments (primary segment) and geographical markets (secondary segment). The segmental disclosures comply with the Company's accounting policies and internal financial management.Cost of salesCost of sales includes the directly related consumption of goods sold and landing costs.Cost of sales includes in addition the research and development costs as far as these costs cannot be assessed for recording in the balance sheet.Other external expensesOther external expenses include all other external costs that do not relate to consumption of goods, personnel costs, depreciation and financial expenses, e.g. freight, rent and travel costs.Other operating incomeOther operating income is any income related to non-typical revenues.Share-based incentive schemeThe value of services received as compensation for allocated cash-settled options is recognised at the value of the options' intrinsic value, which is the difference between the option exercise price and the market price of the shares in BASF SE at the balance sheet date. The liability related to the options is adjusted at each balance sheet date and at final settlement. Adjustments of the valuation of the options are included in the income statement under personnel costs pro rata over the vesting period. The counter entry is included under liabilities in the balance sheet.Financial income and expensesFinancial income and expenses include interest income and interest expense, realised and unrealised exchange gains and losses regarding payables, receivables and transactions in foreign currencies and surcharges and refunds under the on-account tax scheme.Tax for the yearTax for the year, which includes current tax for the year and changes in deferred tax, is included in the income statement by the tax expense relating to the profit/loss for the year. The tax expense directly relating to items in equity are recognised directly in the equity.BALANCE SHEETIntangible assetsIntangible assets include software.Software is recognised as costs at purchase price. Intangible assets are amortised on a straight-line basis over the assets' expected useful lives, which are determined to be 5 years.The carrying value is continuously assessed and written down to a lower realisable value in the income statement if the carrying value exceeds the estimated future net cash flows from the acticvity to which the intangible asset relates.Property, plant and equipmentProperty, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Land is not depreciated.The cost comprises of the acquisition price, costs directly attributable to the acquisition, and costs for preparing the asset for intended use. For company-manufactured assets, cost comprises of direct and indirect costs of materials, components, sub-suppliers and labour costs. Interest expenses on loans for financing the manufacturing of property, plant and equipment are included in cost if they relate to the manufacturing period.The basis of depreciation is cost less estimated residual value at the end of useful life.Straight-line depreciation is made on the basis of the following estimated useful life of the assets:Buildings 30 yearsProduction buildings 10-20 yearsInstallations in buildings 10-25 yearsPlant and machinery 5-10 yearsFixtures and fittings, tools and equipment 3-10 yearsLeasehold improvements 10 yearsProperty, plant and equipment are written down to a lower recoverable amount if this is lower than the carrying amount.Profits and losses from the sale of property, plant and equipment are calculated as the difference between selling price less selling costs and the carrying value at the time of sale.Losses are recognised in the income statement together with depreciation and impairment losses. The net profits thereof are recognised as other operating income.Financial AssetsOther securities and equity investments are measured at cost. In case of indication of impairment, an impairment test is conducted. When the cost exceeds the recoverable amount, write-down is made to this lower value.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.Cost of goods for resale, raw materials and consumables consist of purchase price plus landing costs. The costs of manufactured goods and work in progress consist of costs of raw materials, consumables and direct labour costs as well as indirect production costs. Indirect production costs comprise indirect materials and labour costs, costs of maintenance of and depreciation and impairment losses on machinery, factory buildings and equipment applied for the manufacturing process as well as costs of factory administration and management. Financing costs are not included.The net realisable value of inventories is calculated as the estimated selling price less costs to complete and cost of sale.ReceivablesReceivables are measured at amortised cost.Write-down is made for bad debt losses where there is an objective indication that a receivable or a portfolio of receivables has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis.Receivables with no objective indication of individual impairment are assessed for objective indication of impairment on a portfolio basis. The portfolios are primarily based on the debtors' registered offices and credit rating in accordance with the Company's credit risk management policy. The objective indicators used in relation to portfolios are determined on the basis of historical loss experience.PrepaymentsPrepayments comprise of incurred costs relating to subsequent financial years. Prepayments are measured at amortised cost which usually corresponds to the nominal value.Cash and cash equivalentsCash and cash equivalents include bank deposits.Receivables on the group cash-pool arrangement is not recognised as cash and cash equivalents, but is included in the liability/receivable with group enterprises.LeasesAll leases are treated as operating leases. The lease payments in connection with operating leases and other tenancy agreements are included in the income statement straight-line over the contractual period. The total obligation concerning operating leases and tenancy agreements is explained under contractual obligations etc. in the notes.DividendsProposed dividends are recognised as a liability at the date on which they are adopted at the annual general meeting (declaration date). The expected dividend payment for the year is disclosed as a separate item under equity.ProvisionsProvisions comprise anticipated costs of decided and published restructurings, etc. Provisions are recognised and measured as the best estimate of the expenses required to settle the liabilities at the balance sheet date. Provisions that are estimated to fall due more than one year after the balance sheet date are discounted using an average bond yield.Corporation tax and deferred taxCurrent tax liabilities and tax receivables, respectively, are included in the balance sheet.Deferred tax is measured according to the balance-sheet liability method for all temporary differences between the carrying amount and tax value of assets and liabilities, where the tax value of the assets is calculated based on the planned use of each asset. Deferred tax assets, including the tax value of tax loss carryforwards, are included in the balance sheet at the value at which the asset can be expected to be realised, either by off-setting towards the deferred tax liabilities or as net tax assets. The Company is jointly taxed with the other Danish subsidiaries and branches in the BASF Group and branches. The current Danish corporation tax is distributed between the jointly taxed Danish entities in relation to their taxable income (full allocation with reimbursement regarding tax losses). The Company is the administrative company in the joint taxation.Liabilities other than provisionsThese liabilities are measured at amortised cost, which usually corresponds to the nominal value.Financial ratiosThe financial ratios have been calculated as follows:Gross margin =Gross profit or loss RevenueOperating margin =Operating profit or lossRevenueReturn on invested capital =Operating profit or lossAverage invested capitalReturn on equity =Profit or loss for the yearAverage equityEquity ratio =Total equityTotal equity and liabilities at year endInvested Capital = Operational intangibles, property, plant, equipment as well as net working capital true Cash flow statementPursuant to section 86(4) of the Danish Financial Statements Act, a cash flow statement is not prepared. 2Revenue - Segmental information2023 2022Activities, primary segment KDKK KDKKChemicals 112.595 123.674 Materials 260.275 329.086 Industrial Solutions 211.378 215.995 Nutrition & Care 740.806 732.320 Agricultural Solutions 354.977 343.569 Others 36.998 47.591 Total revenue 1.717.029 1.792.235 The company's activity segmentation is changed in 2022 and follow now the same principle as the parent company. Geography 2023 2022KDKK KDKKDomestic market 1.089.657 1.190.770 EU countries 291.495 292.549 NAFTA countries 82.157 77.305 Other countries 253.720 231.611 Total revenue 1.717.029 1.792.235 3 2023 2022Other operating income KDKK KDKKOther revenue from non-typical business (8.990) 4.838 Leasing assets contracts divested to sister company - - Total Other operating income (8.990) 4.838 4 2023 2022Staff costs KDKK KDKKWages and salaries 157.508 170.751 Pensions 14.777 15.379 Other social security costs 3.199 2.920 Total staff costs 175.484 189.050 Total remuneration for Executive Management and Board of Directors 4.882 4.884 Certain executive officers or previous employees of the Company are entitled to receive cash-settled share options in BASF SE.The Company's liability relating to this scheme is included in the other payables. 220 236 5Amortisation on intangible assets 2023 2022KDKK KDKKSoftware Amortisation (246) (875) Total amortisation on intangible assets (246) (875) 6Depreciation on property, plant and equipment 2023 2022KDKK KDKKLand & Buildings (3.928) (4.164) Plant & Machinery (7.124) (6.697) Fixtures, fittings, tools & equipment (2.941) (2.858) Property & plant under construction - - Total depreciation on property, plant and equipment (13.993) (13.719) 7Financial income and expenses 2023 2022KDKK KDKKForeign exchange gains 2.580 3.452 Interest from group enterprises 24.387 2.214 Total financial income 26.967 5.666 Interest and charges, bank loans (82) (175) Interest expense to group entities - - Foreign exchange losses (3.264) (4.731) Other financial expenses (leasing) - - Total financial expenses (3.346) (4.906) 8Tax on profit for the year 2023 2022KDKK KDKKCalculated tax of the year's taxable income13.925 - The year's adjustment of deferred tax 1.366 1.240 Adjustment of tax, previous years - (13) Tax on profit for the year 15.291 1.227 53976000 0 0 3334000 10Intangible Assets - Software 2023 2022KDKK KDKKCost at 1 January 3.464 6.677 Additions - - Disposal - (3.213) Cost at 31 December 3.464 3.464 Amortisation and impairment losses at 1 January (2.971) (5.309) Amortisation for the year (246) (875) Amortisation regarding the year's disposal 3.213 Amortisation and impairment losses at 31 December (3.217) (2.971) Book value at 31 December 246 493 11Property, plant and equipment Fixtures, Property fittings & equipmentLand and Plant and tools and underbuildings machinery equipment construction TotalKDKK KDKK KDKK KDKK KDKKAcquisitions at 1 January 2023 182.777 210.343 31.731 5.549 430.400 Additions - acquisitions - 4.226 3.514 (3.272) 4.468 Disposals and retirements - - - - - Acquisitions at 31 December 2023 182.777 214.569 35.245 2.277 434.868 Depreciation and impairment losses at 1 Jan 2023 (154.634) (173.887) (22.539) - (351.060) Depreciation for the year (3.928) (7.124) (2.941) - (13.993) Depreciation regarding the year's disposals and retirements - - - - - Depreciation and impairment losses at 31 Dec 2023 (158.562) (181.011) (25.480) - (365.053) Book value at 31 December 2023 24.215 33.558 9.765 2.277 69.815 Book value at 31 December 2022 28.143 36.456 9.192 5.549 79.340 12Receivables from / Payables to group entitiesThe item receivable includes an intra-group cash-pool of 267 MDKK (2022: 744 MDKK)13Income tax receivable/(payable) 2023 2022KDKK KDKKCalculated tax of the year's taxable income(13.925) - Prepaid tax during the year 3.990 5.688 Tax related to previous year (1.325) - Total Income tax receivable/(payable) (11.260) 5.688 14PrepaymentsThe item primarily consists of prepaid insurance. 15Share capitalThe share capital consists of 15.420 shares of 10 KDKK each.The shares are not divided into classes.The latest changes in the share capital are:KDKKShare capital at 1 January 2012 95.500Capital increase at 2 December 2013 933.700Capital reduction at 21 December 2023 -875.000Share capital at 31 December 2023154.200 16Provisions for deferred tax 2023 2022KDKK KDKKDeferred tax at 1 January (6.941) (5.701) Adjustment of deferred tax, beginning of year (1) - The year's adjustment of deferred tax (1.366) (1.240) Deferred tax at 31 December (8.308) (6.941) Provisions for deferred tax relate to:Intangible assets (246) (493) Property, plant and equipment (8.230) (9.339) Inventories (45.171) (69.855) Provisions 15.887 48.135 Total (37.760) (31.552) Tax rate 22% 22%Deferred tax (8.307) (6.941) 17 2023 2022Other payables KDKKKDKKVAT and duties 3.079 272 Wages and salaries, social security costs, holiday allowance23.094 36.159 Total other payables 26.173 36.431 18Contingent liabilities, contractual obligations etc.The Company is a part of the compulsary joint taxation with the Danish BASF companies and branches.The companies have unlimited joint and several liability for Danish corporation taxes and withholding taxes with in the joint taxation group.Operating leases 2023 2022Operating leases have been entered into for the period 2023 to 2027 concerning rental KDKK KDKKof office premises, warehouses, servers, land and leasing cars:19.438 20.847The contracts have termination periods between 3 to 48 months.Furthermore, The Company has a guarantee commitment on company credit cards issued to the employees of 5.6 MDKKThe Company has no relevant running warranty claims. 19Fees to the auditor appointed at the general meetingPursuant to Section 96 of the Danish Financial Statement Act, audit fee is not disclosed. 20Currency and interest rate exposure, credit risks and financial instrumentsLiabilitiesCurrency exposure - recognised transactions Receivables other than Hedged Net position Net positionand cash provisions portion 2023 2022KDKK KDKK KDKK KDKK KDKKUSD 25 (751) - (726) (15) EUR 183.740 (29.845) (142.394) 11.501 8.126 SEK 1.501 (129) - 1.372 685 NOK 286 (22) - 264 494 Other - 0 - 0 237 Total 185.553 (30.746) (142.394) 12.411 9.527 The Company uses hedging instruments such as forward contracts to hedge recognised transactions. Hedging of recognised transactions includes receivables and liabilities other than provisions.At 31 December 2023, The Company had five active hedging contracts. At 31 December 2023, unrealised net loss on derivative financial instruments for currency hedging totalled 17,6 KDKK Currency exposure - recognised transactions Contract Contract gains/ gains/value value (losses) (losses)2023 2022 2023 2022KDKK KDKK KDKK KDKKCurrency bought on future deals 142.394 173.998 (18) 1 Total currency exposure on futures 142.394 173.998 (18) 1 Forward contracts concern hedging of receivables from sale and payables from purchase of goods, see BASF accounting policies. At 31 December 2023, The Company had four active forward contracts.Currency and interest rate exposure, credit risks and financial instrumentsInterest bearing exposure with Group Companies 2023 2022Contractual dates reassessment and repayment of financial assetsKDKK KDKKReceivables from group entities266.804 743.851None of the above assets and liabilities fall due after more than one year. For further description of the interest risks, please refer to the Management's review.2023 2022Credit exposure KDKKKDKKTrade receivables 167.461 203.830The customers are mainly large domestic and foreign companies.The Company has experienced very few losses on its receivables. 21Related partiesCompaniesRelated parties exercising control: The parent company BASF SE, Ludwigshafen, Germany.BASF SE holds 100 % of the shares in BASF A/S. BASF A/S is part of the consolidated financial statements of BASF SE.The consolidated financial statements of BASF SE can be obtained on https://www.basf.com/global/en/investors.htmlRelated parties also include group enterprises, Executive Board and the Board of Directors, management employees as well as their close family members. Moreover, related parties include companies in which the above-mentioned list of persons have major interests.Main related parties with whom the Company had postings at the end 2023:Company Street name Town CountryBASF AB Sven Hultins Plats 5 SE-412 58 Gothenburg SwedenBASF AS Lilleakerveien 2B NO-0283 Oslo NorwayBASF OY Tammasaarenkatu 3 FIN-00180 Helsinki FinlandBASF Coatings Services AB Transportgatan 37 S-422 46 Hisings Backa SwedenBASF UAB Spaudos g. 6-1 LT05132 Vilnius LithuaniaBASF SIA Lambertu iela 33B Mārupe LV-2167 LatviaBASF PLC 2 Stockport Exchange Stockport, SK1 3GG EnglandBASF Battery Materials Finland Oy Tammasaarenkatu 3 FIN-00180 Helsinki FinlandRelated party transactions 2023 2022KDKK KDKKNet Sales Tangible Products 401.977 369.558 Sales Other Operating Revenue 68.941 78.115 Total sales to BASF Group companies 470.918 447.673 Payments for Tangible Products 1.178.267 1.320.877 Commission Expenses - - Other Operating Expenses 37.635 39.141 Cost Sharing Agreements 1.338 2 Comparable uncontrolled price in Own Risk Manufacturing 5.554 14.370 Comparable uncontrolled price in Merchandise business as Own risk manufacturing 330 1.128 Total purchases and expenses from BASF Group companies 1.223.124 1.375.518 The Company has most of its sales, purchases and commissions regarding agency sales with its holding company BASF SE.All the Nordic-Baltic BASF companies act as one organisation within areas such as business management, order handling, sales and technical customer advice and of services administration between the companies.The Company has a cooperation withBASF ABBASF ASBASF OYBASF SIABASF UABBASF Coatings Services AB The Company has an agreement within cash handling with BASF Belgium Coordination CenterThe Company buys IT services and hardware fromBASF Digital Solutions GmbHThe Company receives admin and financial services from BASF Shared Services GmbHThe Company has a limited number of transactions with other group enterprises.Complete list of BASF companies with whom the Company has had transactions with during 2023Company name Country EU Country Non-EU CountryBASF SE Germany XBASF Digital Solutions GmbH Germany XBASF Schwarzheide GmbH Germany XBASF Services Europe GmbH Germany XBASF Polyurethanes GmbH Germany XBASF Renewable Energy GmbH Germany XBASF Catalysts Germany GmbH Germany XBASF Personal Care and Nutrition GmbH Germany XBTC Europe GmbH Germany XBASF Performance Polymers GmbH Germany XBASF UAB Lithuania XBASF Antwerpen NV Belgium XBASF Belgium Coordination Center CommV Belgium XBASF Espanola S.L.U. Spain XBASF Schweiz AG Switzerland XBASF AB Sweden XBASF plc Great Britain XBASF Polska Sp. z o.o. Poland XBASF AS Norway XChemetall AB, (Finland Branch) Finland XChemetall AB (Denmark Branch) Denmark XChemetall AB Sweden XBASF SIA Latvia XBASF Agro B.V. Arnhem (NL) Freienbach Branch Switzerland XBASF Coatings Services AB Sweden XCloudfarms ApS Denmark XNunhems Netherlands B.V. Netherlands XBASF Nederland B.V. Netherlands XBASF Österreich GmbH Austria XBASF Italia S.p.A. Italy XBASF Oy Finland XBASF Battery Materials Finland Oy Finland XBASF Corporation USA X 22Subsequent eventsNo subsequent events relevant to mention. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-01-01 2022-12-31 2024-06-13 Reporting class C, large enterprise 2024-05-27 Opinion Basis for Opinion 2024-05-27 mne19737