Syensqo launches its 5-year growth strategy to create significant value

Date:11-14-2023

November 13, 2023 marks a new era for Syensqo and its stakeholders as it sets out its new, more focused growth strategy as it prepares to begin life as an independent, listed company (subject to approval by Solvay’s shareholders at the Extraordinary General Meeting approval on December 8, 2023). 

Syensqo presents its new mid-term financial targets and sustainability commitments at its inaugural Capital Markets Day. The presentation prepared for the Capital Markets Day is available on Syensqo’s website (www.syensqo.com/en/investors/spinoff) and key highlights are summarized below.

Syensqo’s future senior leadership team, announced on November 3rd, 2023, is committed to accelerating value creation by delivering superior revenue growth, margin expansion and increasing returns. Achieving Syensqo’s mid-term targets is expected to deliver more than €7bn of cash between 2024 and 2028.

Syensqo believes the separation will create one of the leading global pure play specialty chemical companies, driven by its mission to be the innovation leader in its industry and its unique portfolio of technologies, solving the unmet needs of its customers across the globe. Syensqo’s unique portfolio of solutions is aimed at addressing disruptive megatrends, including electrification, lightweighting, connectivity, and quality of life.  In addition, Syensqo is at the heart of the transition towards a climate-neutral economy, which is expected to drive new sources of value and support its long-term growth. 

Syensqo’s long-term ambition is to be the prime innovation partner to its customers, grow at around two times the rate of its end markets, and deliver superior returns. 

Mid-term financial targets to 2028

Syensqo sets its 2028 financial targets (on an organic basis) as follows:

• 5% to 7% net sales growth over 2024-2028

• Underlying EBITDA Margin (in %) to mid-20s by 2028

• ROCE to mid-teens by 2028

Prioritizing growth while maintaining strong investment grade rating

Syensqo is expected to have a strong balance sheet and foundation for accelerated growth, with an expected strong investment grade rating.

Launching its One Planet sustainability commitments

Syensqo’s One Planet targets represent a commitment to making the world a better place, and act as a driver of revenue growth.  Syensqo’s specific targets include:

• -23% Scope 3 GHG emissions by 2030 compared to 2021 

• Carbon neutrality on Scope 1 and 2 GHG emissions by 2040, with -40% Scope 1 and 2 GHG emissions by 2030 compared to 2021

• Increasing circular economy sales to 18% of total sales by 2030

• Aiming for Gender parity across our organization by 2033 for mid and senior management