Clariant provided an update on its strategy to reach the mid-term targets 2015 on the occasion of its annual Capital Markets Day today. The focus of the event was on growth and innovation, substantiated by an insight into recent developments in Crop Care, Personal Care and Oil & Mining Services.
With the integration of the growth businesses Catalysis & Energy and Functional Minerals and the planned divestment of five low growth, low profitability businesses, Clariant’s adjusted portfolio has a high exposure to markets with future perspectives and strong growth rates. In those markets, the company has competitive positions and a superior pricing power. This is reflected in a significantly higher earnings quality.
“The investments into R&D of the last two years are now becoming visible. The innovation pipeline is constantly growing and currently has a sales potential of more than 1 billion Swiss francs by 2017”, CEO Hariolf Kottmann said. “Combining Clariant’s innovation strength with a clear focus on customers and markets, we will be in an even better position to exploit the potential of our R&D pipeline.”
For the remainder of the current business year, Clariant will focus on accelerating top-line growth, finalizing the portfolio measures as well as maintaining a high cost discipline. “While we expect the economic environment to remain difficult, Clariant has a sound financial basis for executing the profitable growth strategy that will lead to an increase in local currency sales and a higher EBITDA margin in 2013”, CFO Patrick Jany said.
CEO Kottmann reconfirmed the 2015 targets of an EBITDA margin before exceptionals above 17% and a return on invested capital (ROIC) above peer group average. Beyond 2015, the company strives for continuity, reflected in an above GDP top-line growth and a sustained high profitability.