Clariant (CLN) CMD 2024 summary

Strategic transformation and business model evolution

• Streamlined portfolio to focus on specialty chemicals, increasing exposure to consumer markets and divesting non-core assets since 2021, with a customer-centric operating model and differentiated segment steering.

• Reduced cost base with CHF 175 million in targeted savings by 2025, over 90% already achieved, and further CHF 80 million in savings planned by 2027.

• New operating model since January 2023, reducing management layers, consolidating business units from five to three, and empowering regional leadership with full P&L accountability.

• Enhanced employee engagement and customer satisfaction, with top quartile Net Promoter Scores and safety targets.

• Increased focus on innovation and sustainability, leveraging megatrends such as decarbonization, health, and digitalization.

Growth strategy, innovation, and sustainability

• Growth driven by global megatrends: health, wellness, sustainability, energy transition, digitalization, and decarbonization.

• Innovation arenas—health and sustainability-conscious consumers, energy transition, and circularity—will generate over 70% of growth by 2027 and deliver ~1.5% market outgrowth p.a.

• Over 80% of sales from sustainable products; phased out PFAS-containing and non-sustainable products; leading in greenhouse gas emissions intensity reduction.

• Upgraded 2030 sustainability targets: 46% reduction in Scope 1 & 2, 28% in Scope 3 emissions, aligned with 1.5°C SBTi trajectory and Paris Agreement.

• Digitalization and AI (Clarita) deployed across sales, R&D, and operations, with 36% of employees using AI tools and digital customer interfaces accelerating efficiency.

Segment performance and business unit highlights

• Care Chemicals: Largest business, CHF 2.2 billion revenue, 19% margin, strong in cosmetics (Lucas Meyer acquisition), pharma, and mining; targeting 9% growth in pharma and double market growth in cosmetics and mining.

• Lucas Meyer Cosmetics acquisition strengthens position in premium active ingredients, with double-digit growth outlook and significant synergy potential.

• Catalysts: CHF 850 million sales, 18.8% EBITDA margin, global footprint, leading in petrochemicals, syngas, and specialties; leveraging digital Clarity platform and targeting growth from energy transition and hydrogen economy.

• Adsorbents & Additives: CHF 1 billion revenue, 13% margin, leading in purification, flame retardants, and sustainable additives; turnaround in progress with margin recovery and focus on renewable fuels and PFAS-free solutions.

• Margin recovery underway in Adsorbents & Additives, leadership in renewable fuels purification, and turnaround in additives driven by sustainability and regulatory trends.