TheChemicalIndustry-Specialization,Globalization,InnovationProf.Dr.Utz-HellmuthFelchtSOCMA‘sMarchLuncheonNewYorkCityMarch20th,20032003-03-20TheChemicalIndustry-Specialization,Globalization,InnovationSlide2AgendaChangeoftheChemicalIndustryChangeoftheChemicalIndustryDegussa’sSituationDegussa’sSituationSummaryandOutlookSummaryandOutlook2003-03-20TheChemicalIndustry-Specialization,Globalization,InnovationSlide3AgendaChangeoftheChemicalIndustryChangeoftheChemicalIndustryDegussa’sSituationDegussa’sSituationSummaryandOutlookSummaryandOutlook2003-03-20TheChemicalIndustry-Specialization,Globalization,InnovationSlide4ChangeoftheChemicalIndustryTrendsseenoverthelast15years�Matureindustry,growthwellbelowGDPratesindevelopedeconomies,differentiationcharacteristicswithincompetitionarenolongerexisting�Developedmarkets,reachedrespectivegrowthcapacities,puremarketingstrategiesinsteadofinnovationdeterminesellingofproducts�Globalization,openingofformerlyclosedmarkets(“ironcurtain”fell),newattractivemarketsdeveloped,chemicalindustryevolvesinlow-wagecountries,freeflowofcapitalandinformation(Internet),EuropeanUnion,introductionofEuroascommoncurrency�Financialmarkets’importance,increasedpressureoncompanies’performance,clearstrategywithfocusonprofitablesustainablegrowthdemanded�Environmentalpressure,ResponsibleCare®,EUregulatoryenvironment2003-03-20TheChemicalIndustry-Specialization,Globalization,InnovationSlide5ChangeoftheChemicalIndustryConsequences:StructuralchangesSustainablebusinessesinglobalmarketsrequire:�Leadingmarketpositionsfordrivingthecompetitionandgenerationofsustainableearnings�Criticalmasstogeneratenecessaryresourcesformarket&technologydevelopment+Acquisitions�FocusoncorecompetenciesbecauselimitedresourcesandhighnecessaryinvestmentsdonotallowequalsupportofalltraditionalbusinesssegmentsDivestments-ActiveportfoliomanagementaimingforsustainablegrowthActiveportfoliomanagementaimingforsustainablegrowth2003-03-20TheChemicalIndustry-Specialization,Globalization,InnovationSlide6ChangeoftheChemicalIndustryRefocusing–NewBusinessModelsTraditionalchemicalconglomeratesanddiversifiedgroupsrestructureintofourtypesoffocusedcompaniesSpecialtyChemicalsFineChemicalsLifeSciencesCommoditiesMoleculeSupplierProblemSolverTraditionalConglomeratessuccessfactors•R&D/patents•marketing&sales•processtechnologies•rawmaterialbasis•logistics•“Verbund”•technicalportfolio•customerorientation•R&Dcompetence•knowledgeofmarketneeds•applicationtechnologies•“magicingredients“successfactors2003-03-20TheChemicalIndustry-Specialization,Globalization,InnovationSlide7ChangeoftheChemicalIndustrySpecialtyChemicalsSpecialitieshavealowratioofpurchasecostsavingstoassociatedsubstitutioncostsforthecustomer(Source:BostonConsulting)High�highermargins�lowercyclicity�highergrowthrates�betterdifferentiation�greatervalueaddedforcustomerSpecialitiesCommoditiesCostsavingsforthecustomerifsubstitutionproductis1%cheaperLowLowHighCost/riskofproductsubstitutionforthecustomer2003-03-20TheChemicalIndustry-Specialization,Globalization,InnovationSlide8ChangeoftheChemicalIndustryExamplesforRestructuringofChemicalCompanies•conglomerates•commodities•specialties•lifesciences•pharma•agroRhonePoulencHoechstAventisSandozCibaGeigyICIRhodiaCelaneseClariantCibaSpecial.NovartisAstraZenecaAstraAveciaICIZenecaNovart...
