Strategy
Conzzeta is a broadly diversified Swiss group of companies. It stands for innovation, market orientation and an entrepreneurial approach. More than 5ʼ200 employees at over 60 locations worldwide are dedicated to offering customers high-quality and viable solutions for the future.
Strategy and portfolio
Conzzeta is striving to become a leader in its target markets and is developing a business portfolio with above-average growth prospects and long-term value creation.
Conzzeta is supporting and promoting its business units: innovation, growth and business excellence form the basis for long-term returns ranking in the highest quartile of the respective peer group.
Conzzeta is pursuing medium-term financial targets to which all business units should contribute, notwithstanding the diversity of their business cycles and their varying geographical presence.
Conzzeta is developing the business over the longer term with a strong balance sheet. Taking consideration of the circumstances, it envisages a dividend of between one third and one half of the Group result.
Diversified management
Priorities, targets, performance
Priorities
Market orientation
In 2018, our net revenue increased by over 10% across all segments and regions. We achieved this broad-based growth by focusing on growth markets and thanks to innovative products and targeted acquisitions to complement our range of products and services or to strengthen our market position.
Internationalization
Increasingly, we are realizing our potential outside our European home markets. We see opportunities particularly in Asia and the Americas. Revenue attributable to Asia and the Americas increased by 80% within three years since the end of 2015, while the share of revenue from Europe dropped from 60% to 54%.
Employee development
We encourage our employees by offering opportunities for personal development in global, mixed teams. In 2018, we continued our Talent Development Program and launched a Senior Leadership Program. This advanced education focuses on the topics of digitization, customer focus and problem-solving competencies.
Business excellence
With a view to achieving sustainable improvements, in 2018 we largely finished setting up the Group-wide Business Excellence Program based on the Six Sigma model. Around 60 green and black belts have now undergone training. The portfolio includes measures in all business units, which will make a significant contribution to results by the end of 2020.
Financial targets (mid-term)
Net revenue
Conzzeta is aiming to increase revenue by more than 5% at Group level. Growth in 2018 exceeded the 2017 figure by 20.2%. At stable exchange rates and excluding changes in the scope of consolidation, revenue growth amounted to 10.4%.
Operating result
Conzzeta is aiming to achieve an EBIT margin of between 8% and 10%. The EBIT margin in 2018 amounted to 8.2%, after 7.6% in 2017 (without the divestment gain of CHF 8.8 million in the Chemical Specialties segment from the 2017 sale of the US joint venture).
Capital efficiency
Conzzeta is aiming for a RONOA of more than 15%. The RONOA in 2018 was 23.1%, after 19.5% (adjusted) in 2017. RONOA stands for return on net operating assets and is calculated after taxes.