Clariant (CLN) CMD 2024 summary

Strategic transformation and portfolio focus

• Streamlined to a specialty chemicals company with increased consumer market exposure, divesting non-core assets and reducing business units from five to three since 2021, with a flatter structure and full P&L accountability.

• Over 90% of CHF 175 million cost savings targeted by 2025 already achieved, with further self-help actions planned to reach CHF 80 million run-rate savings by 2027.

• New leadership team based in key growth regions, enhancing local responsiveness and empowerment.

• Portfolio now centers on Care Chemicals, Catalysts, and Adsorbents & Additives, each with strong market positions and sustainability focus.

• Differentiated segment steering implemented to maximize value creation across business units.

Growth strategy and market positioning

• Sales from consumer-facing end markets increased to 44% in Q3 2024, up from 36% in 2021.

• Major investments in Asia-Pacific and Americas, with two-thirds of CapEx outside Europe in 2024.

• Lucas Meyer Cosmetics acquisition strengthens position in premium active ingredients, targeting 12% annual growth to 2027 and significant synergy potential.

• Pharma business targeted for 9% annual growth, leveraging shared chemistry platforms and expansion in Asia.

• Digitalization and AI (Clarita/CLARITA) deployed across sales, R&D, and operations, with 36% employee adoption and rising, accelerating innovation and efficiency.

Innovation and sustainability leadership

• Over 80% of sales from sustainable products; portfolio now PFAS-free and classified as sustainability positive.

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

• Top quartile safety and employee engagement achieved; systematic sustainability risk/benefit analysis embedded since 2012.

• Three innovation arenas—health & sustainability-conscious consumers, energy transition, and circularity—expected to drive 70% of growth by 2027 and deliver ~1.5% market outgrowth p.a.

• AI and digital tools accelerating innovation, with new products accounting for 17.4% of sales and targeted to reach 20% by 2027.