Business Growth and Profitability
For Clariant, business growth refers to growth in production, services, and revenue. Profitable growth is the basis for the generation of economic value for shareholders, employees, customers, suppliers, local communities, and other stakeholders.
In 2021, Clariant introduced its purpose-led strategy – »Greater chemistry – between people and planet« – based on customer focus, innovative chemistry, leading in sustainability, and people engagement. The company also outlined financial targets for 2025 and non-financial targets for 2030 that reflect Clariant’s ambition to achieve top-quartile results in specialty chemicals in terms of growth, profitability, sustainability, and people.
The acquisition of BASF’s US-based Attapulgite business assets was concluded in October 2022. This transaction will support the company’s path towards reaching its targets and will improve the EBITDAEBITDAEarnings before interest, taxes, depreciation, and amortization. margin profile of Clariant’s Functional Minerals business.
Although business growth and profitability are a shared responsibility between all management functions, Clariant’s Board of Directors defines the Group’s overall direction. It has delegated the executive management of this strategy to the Executive Steering CommitteeExecutive Steering CommitteeThe Executive Steering Committee (ESC) is authorized by the Board of Directors to steer the company. It has overall strategic and financial responsibility, including for our profit and loss statement. The ESC consists of the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), and the three Business Presidents. (ESC), which replaced the former Executive CommitteeExecutive CommitteeUntil 30 June 2022, the Executive Committee was mainly responsible for implementing and monitoring the Group strategy, for the financial and operational management of the Group, and for the efficiency of the Group’s structure and organization. Effective 1 July 2022, the Executive Committee was replaced by the Executive Steering Committee (ESC). as of 1 July, 2022. According to the new leadership model, the Executive Steering CommitteeExecutive Steering CommitteeThe Executive Steering Committee (ESC) is authorized by the Board of Directors to steer the company. It has overall strategic and financial responsibility, including for our profit and loss statement. The ESC consists of the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), and the three Business Presidents. comprises the CEO, CFO, and the presidents of the three new business units. It is responsible for implementing, monitoring, and improving the financial and operational management strategy. Clariant’s Strategic Management ProcessStrategic Management ProcessClariant’s Strategic Management Process (SMP) is conducted by the business units in collaboration with Corporate Planning & Strategy. The SMP ensures Group level and business unit strategies are connected and are updated together. Clariant refreshed its SMP in 2021. (SMP) ensures that each business unit executes the corporate strategy.
Read more about the SMP in the chapter Growth Opportunities from Sustainable Products and Solutions.
Please consult the Business Report for in-depth information on the new organizational structure.
Please consult the Business Report for in-depth information on Clariant’s targets for growth and profitability.
Please consult the Business Report for in-depth information on how Clariant’s three business areas contribute to the company’s growth and profitability.
Please consult the Financial Report for in-depth information on 2022 sales and earnings figures.
Please consult the Compensation Report for in-depth information on incentives for Clariant’s Management to achieve the corporate targets.
PERFORMANCE OVERVIEW
| Continuing operations | Discontinued operations | Total 2022 | 2021 | |||||
|---|---|---|---|---|---|---|---|---|
| Sales (in CHF m) | 5 198 | 0 | 5 198 | 5 284 | ||||
| EBITDAEBITDAEarnings before interest, taxes, depreciation, and amortization. (in CHF m) | 810 | 214 | 1 024 | 822 | ||||
| EBITDAEBITDAEarnings before interest, taxes, depreciation, and amortization. before exceptional items (in CHF m) | 893 | 8 | 901 | 898 | ||||
| EBITDAEBITDAEarnings before interest, taxes, depreciation, and amortization. margin (%) | 15.6 | n.a. | 19.7 | 15.6 | ||||
| EBITDAEBITDAEarnings before interest, taxes, depreciation, and amortization. margin before exceptional items (%) | 17.2 | n.a. | 17.3 | 17.0 | ||||
| EBITEBITEarnings before interest and taxes. (in CHF m) | 72 | 214 | 286 | 553 | ||||
| EBITEBITEarnings before interest and taxes. before exceptional items (in CHF m) | 617 | 8 | 624 | 630 | ||||
| Net result (in CHF m) | –101 | 217 | 116 | 373 | ||||
| Basic earnings per share (in CHF) | –0.40 | 0.66 | 0.26 | 1.04 | ||||
| Diluted earnings per share (in CHF) | –0.40 | 0.66 | 0.26 | 1.04 | ||||
| Operating cash flow (in CHF m) | n.a. | n.a. | 502 | 363 | ||||
| Return on invested capital (ROIC) (%) | 1.5 | n.a. | n.a. | n.a. | ||||
| Investment in property, plant, and equipment (in CHF m) | n.a. | n.a. | 209 | 357 | ||||
| Personnel expenditures (in CHF m) 1 | n.a. | n.a. | 1 018 | 1 066 | ||||
| Total assets (in CHF m) | n.a. | n.a. | 6 188 | 7 038 | ||||
| Equity (in CHF m) | n.a. | n.a. | 2 513 | 2 544 | ||||
| Equity ratio (%) | n.a. | n.a. | 40.60 | 36.10 | ||||
| Net debt (in CHF m) | n.a. | n.a. | 750 | 1 535 | ||||
| GearingGearingGearing is an indicator of the indebtedness of a company and reflects a company’s ratio of long-term debt to equity capital. (%) | n.a. | n.a. | 30.0 | 60.0 | ||||
| Growth through innovation (%) 2 | >5.5 | n.a. | >5.5 | >3.5 | ||||
| Research & Development expenditures (in CHF m) | 160 | 2 | 162 | 167 | ||||
| R&D spend of sales (%) | 3.1 | n.a. | 3.1 | 3.2 | ||||
| Patents (year-end) | >4 300 | n.a. | >4 300 | >5 100 | ||||
| Active innovation projects | >330 | n.a. | >330 | 325 | ||||
| Of which Class 1 Projects with double-digit million sales potential or of strategic relevance | >60 | n.a. | >60 | 65 | ||||
| Scientific collaborations | >65 | n.a. | >65 | 80 | ||||
| Clariant Innovation Centers | 3 | n.a. | 3 | 3 | ||||
| Research & Development Centers and dedicated Technology Centers | 10 | n.a. | 10 | 10 | ||||
| Technical Centers | >45 | n.a. | >45 | 45 | ||||
| Production (in m t) | 3.80 | n.a. | 3.80 | 4.43 | ||||
| Production sites | 70 | n.a. | 70 3 | 79 | ||||
| Countries with production facilities | 24 | n.a. | 24 | 27 | ||||
| Raw material procurement (in CHF m) | 2 258 | n.a. | 2 258 | 2 352 | ||||
| Raw materials procured (in m t) | 3.5 | n.a. | 3.5 | 3.67 | ||||
| Raw material supply spend covered by sustainability evaluations (%) | 89.2 | n.a. | 89.2 | 86.9 | ||||
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1 Including own employees and external staff
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2 Contains the contribution to growth of the innovation portfolio from both Top Line Innovation and Life Cycle Innovation. Potential cannibalization of existing sales by Life Cycle Innovation has not been excluded.
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3 Two sites that are not in the reporting scope are excluded from the count
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