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.View entire glossary 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.View entire glossary (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).View entire glossary 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.View entire glossary 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.View entire glossary (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.View entire glossary (in CHF m)   810   214   1 024   822
EBITDAEBITDAEarnings before interest, taxes, depreciation, and amortization.View entire glossary before exceptional items (in CHF m)   893   8   901   898
EBITDAEBITDAEarnings before interest, taxes, depreciation, and amortization.View entire glossary margin (%)   15.6   n.a.   19.7   15.6
EBITDAEBITDAEarnings before interest, taxes, depreciation, and amortization.View entire glossary margin before exceptional items (%)   17.2   n.a.   17.3   17.0
EBITEBITEarnings before interest and taxes.View entire glossary (in CHF m)   72   214   286   553
EBITEBITEarnings before interest and taxes.View entire glossary 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.View entire glossary (%)   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
1 Including own employees and external staff
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.
3 Two sites that are not in the reporting scope are excluded from the count