Clariant with Clear Strategic Targets up to 2015
The Swiss specialty chemicals company Clariant will continue to consistently implement its profitable growth strategy during the next three years, as announced by CEO Hariolf Kottmann and CFO Patrick Jany at this year's Capital Markets & Media Day in Munich, Germany.
The goal is, amongst others, to increase the company's EBITDA margin from 13.2% in 2011 to above 17% in 2015 and to achieve a return on invested capital (ROIC) that is above peer group average. Clariant will in future generate more than 70% of its sales with core non-cyclical business units.
In order to achieve these goals, considerable progress has to be made in all four strategic directions. Within the existing Business Units, a further profitability increase is planned through Performance Management and Functional Excellence measures. Increased market shares in emerging markets such as China, India and Brazil will further boost profitable growth.
An active portfolio management will play an important role on the path to a sustainably profitable company. As already announced with the publication of the 2011 full year results, the company will sustainably increase the quality and performance of its product portfolio. In this context, Clariant is evaluating strategic options for the Business Units Textile Chemicals, Paper Specialties, and Emulsions, Detergents & Intermediates. These options are planned to be implemented during the next 18 months.
The acquisition of Süd-Chemie was an important first step for Clariant. Already in 2011 the former Süd-Chemie businesses contributed significantly to the company's results. Until end 2013, an additional EBITDA improvement of CHF 90-115 million is expected from synergies resulting from the integration. The transaction will be accretive in 2013, i.e. in the second year after the acquisition. In addition, the transaction was fully refinanced within less than twelve months.
