General
Information
Last Update:
March 1, 2012
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Ambitious growth and profitability targets

Growth targets

  • At least two percentage points faster than chemical production
  • Sales of approximately €85 billion in 2015
  • Sales of approximately €115 billion in 2020
  • All regions contribute to growth

Profitability targets

  • Average premium on cost of capital of at least €2.5 billion on average each year
  • EBITDA of approximately €15 billion in 2015
  • Doubling EBITDA compared with 2010 to approximately €23 billion in 2020

As part of developing our strategy, we have defined goals that we aim to meet by 2020. We forecast that worldwide chemical production will grow faster than global gross domestic product (GDP) through 2020. Based on 2010, we expect GDP to grow by an average of 3% per year, which would be slightly faster than in the past 10 years.

From baseline 2010, chemical production is estimated to grow on average by 4% per year. We continue to aim to grow two percentage points faster than global chemical production and thus increase sales by an average of 6% per year until 2020. We have set ourselves the ambitious goal of earning a premium on our cost of capital of at least €2.5 billion on average each year.

Based on the conditions listed above, we aim to increase sales to approximately €85 billion by 2015 and to approximately €115 billion by 2020. We expect all regions to contribute to this sales growth: Europe with €53 billion in sales in 2020, Asia Pacific with €29 billion, North America with €22 billion and South America, Africa, Middle East with €11 billion. We also want to increase profitability, as well, aiming for an EBITDA of about €15 billion in 2015 and around €23 billion in 2020. Our updated strategy also includes, for the first time, a goal for earnings per share: Our target is to increase earnings to approximately €7.50 per share by 2015.

A new strategic excellence program, STEP, serves to strengthen our competitiveness and profitability. By the end of 2015, STEP is expected to contribute around €1 billion to earnings each year. This program, which follows on from our successfully completed excellence program NEXT, includes measures in the areas of production, engineering, maintenance, logistics, procurement and administration. STEP comprises more than 100 projects that are expected to lower fixed costs and raise profit margins.

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