Send us Feedback

Imperial Chemical Industries (ICI)
Analysis
SUMMARY
BULLS
BEARS
TOPICS
Data
DATA CENTRAL
Financials
SEC FILINGS
BALANCE
INCOME
CASH FLOW

ICI » Topics » Strategic plan targets

These excerpts taken from the ICI 6-K filed Mar 14, 2006.
Strategic plan targets
Underpinned by a set of specific strategic thrusts, the delivery of sustained performance improvement against clear financial targets should enable ICI to deliver significant improvements in shareholder return. The targets, first set out in 2003, are outlined below.

  1. National Starch
  National Starch provides
encapsulating starches to protect
flavours, stabilise emulsions and
improve mouthfeel in beverages.
It also formulates waterborne and
hot melt adhesives for packaging
and labelling, paperboard laminating,
and folding carton and corrugated
packaging assembly.
   
  2. Quest
  Quest makes drinks taste delicious
by creating flavours for all tastes,
varying from strawberry to vanilla,
raspberry, apple, lime, chocolate,
orange, passion fruit, cinnamon
and more.
   
  3. Uniqema
  Uniqema makes ingredients used
in can coatings (to prevent spoilage),
in hot melt adhesives to hold the
cardboard package together, and
printing inks used in packaging
labelling.
   
  4. ICI Paints
  ICI Paints Packaging Coatings
formulates and manufactures
specialised internal and external
coatings for food and beverage cans.

 

ICI’s strategic matrix   Strategic plan targets
     
 
     
Only major business units shown.   Definitions of terms appear on page 29.

 

Strategy ICI Annual Review 2005 7

Back to Contents

Strategic plan targets
Underpinned by a set of specific strategic thrusts, the delivery of sustained performance improvement against clear financial targets should enable ICI to deliver significant improvements in shareholder return. The targets, first set out in 2003, are outlined below.

  1. National Starch
National Starch provides
encapsulating starches to protect
flavours, stabilise emulsions and
improve mouthfeel in beverages.
It also formulates waterborne and
hot melt adhesives for packaging
and labelling, paperboard laminating
and folding carton and corrugated
packaging assembly.
   
  2. Quest
Quest makes drinks taste delicious
by creating flavours for all tastes,
varying from strawberry to vanilla,
raspberry, apple, lime, chocolate,
orange, passion fruit, cinnamon
and more.
   
  3. Uniqema
Uniqema makes ingredients used
in can coatings (to prevent spoilage),
in hot melt adhesives to hold the
cardboard package together, and
printing inks used in packaging
labelling.
   
  4. ICI Paints
ICI Paints Packaging Coatings
formulates and manufactures
specialised internal and external
coatings for food and beverage cans.

 

ICI’s strategic matrix   Strategic plan targets
     
 
     
Only major business units shown.   Definitions of terms appear on page 157.

 

Strategy ICI Annual Report and Accounts 2005 7

Back to Contents

These excerpts taken from the ICI 6-K filed Mar 16, 2005.
Strategic plan targets
Underpinned by a set of specific strategic thrusts, the delivery of sustained performance improvement and the achievement of clear financial targets should enable ICI to deliver significant improvements in shareholder return.


 



ICI ANNUAL REVIEW 2004

Back to Contents

8
   GROUP STRATEGY

 

     Strategic progress in 2004

 

ICI made good progress in 2004, with the Group starting to derive benefits from implementing its revised strategy. Progress towards the strategic plan targets was strong, aided by the improved external environment.

Group comparable sales growth for the year was 7%. Within that, comparable sales for businesses which we intend to “grow aggressively” increased by 11%. Comparable sales for businesses in the “grow selectively” and “maintain aggressively” segments grew by 7% and 5%, respectively, whereas comparable sales growth for businesses which we intend to “maintain selectively”, and where the strategic emphasis is on improving cost and capital effectiveness, grew by 2%. Trading margins improved in all segments.

Regionally, the strategy emphasises development of the Group’s businesses in Asia. In 2004, comparable sales growth in Asia for the International Businesses of 14% was achieved, reflecting a buoyant external environment, the well developed market positions of the Group’s adhesives and paints businesses, and further investment in people, marketing and fixed assets. As a consequence, in 2004, sales in Asia were £1.325bn, 24% of the Group total.

• This chart shows the change in comparable sales for the International Businesses by strategic quadrant from 2003 to 2004.
• Sizes reflect proportion of total International Businesses’ sales in the quadrant.

The increased focus on cost and capital effectiveness underpinned the improvement in Group trading margins from 7.4% in 2003 to 8.6% in 2004. In particular, delivery of cost savings from the restructuring initiatives first announced in 2003 remained on track overall, with savings of £72m achieved in 2004. Notable developments included the closure of two starch manufacturing facilities in the UK and Canada, and a major product rationalisation and supply chain re-engineering programme in Uniqema.

A further improvement in working capital efficiency and continued tight control of capital expenditure contributed to an improvement in the Group’s return on capital employed from 5.8% in 2003 to 7.6% in 2004. They were also critical in the delivery of a positive cash flow before acquisitions and divestments in 2004, a year ahead of the strategic plan target.

Reshaping of the portfolio also continued during the year. In April the Quest Food Ingredients business was sold to Kerry Group plc for £249m; in October 18.9% of the issued shares of Pakistan PTA Ltd were sold by private placement, raising £26m; and, also in October, ICI exited from Ineos Chlor, eliminating further financial commitments. Finally, in December, we announced the sale of National Starch’s Vinamul Polymers business to Celanese for £111m. The transaction was completed in February 2005.

 

 

 

 

 


 

ICI ANNUAL REVIEW 2004

Back to Contents

 CHIEF FINANCIAL OFFICER’S REVIEW   9
     
  In a much better external environment,
the Group’s financial performance improved
significantly in 2004.
Tim Scott Chief Financial Officer    

 

     Chief Financial Officer’s review

 

Strategic plan targets
Underpinned by a set of specific strategic thrusts, the delivery of sustained performance improvement and the achievement of clear financial targets should enable ICI to deliver significant improvements in shareholder return.


 

       
ICI strategic matrix†     Strategic plan targets
   
      Targets
       
    Sales growth Average sales (turnover) growth at, or better
than, the growth in real GDP over the four-year
period 2004 to 2007.
 
    Group trading
margin expansion		 Increase by an average of 0.5% per annum
from 2003 to 2007.
 
    Improved return on
capital employed

Improve by an average of 1% per annum,
to around 10% in 2007.

       
 
    Cash flow

Generate positive cash flow before acquisitions
and divestments on a sustainable basis from
2005 onwards.

   
         
         
         
    † Only major business units shown     Definitions of terms appear on page 131.

 

ICI ANNUAL REPORT AND ACCOUNTS 2004

Back to Contents

8
   GROUP STRATEGY
     
  Strategic progress in 2004

 

ICI made good progress in 2004, with the Group starting to derive benefits from implementing its revised strategy. Progress towards the strategic plan targets was strong, aided by the improved external environment.

Group comparable sales growth for the year was 7%. Within that, comparable sales for businesses which we intend to “grow aggressively” increased by 11%. Comparable sales for businesses in the “grow selectively” and “maintain aggressively” segments grew by 7% and 5%, respectively, whereas comparable sales growth for businesses which we intend to “maintain selectively”, and where the strategic emphasis is on improving cost and capital effectiveness, grew by 2%. Trading margins improved in all segments.

Regionally, the strategy emphasises development of the Group’s businesses in Asia. In 2004, comparable sales growth in Asia for the International Businesses of 14% was achieved, reflecting a buoyant external environment, the well developed market positions of the Group’s adhesives and paints businesses, and further investment in people, marketing and fixed assets. As a consequence, in 2004, sales in Asia were £1.325bn, 24% of the Group total.

The increased focus on cost and capital effectiveness underpinned the improvement in Group trading margins from 7.4% in 2003 to 8.6% in 2004. In particular, delivery of cost savings from the restructuring initiatives first announced in 2003 remained on track overall, with savings of £72m achieved in 2004. Notable developments included the closure of two starch manufacturing facilities in the UK and Canada, and a major product rationalisation and supply chain re-engineering programme in Uniqema.

A further improvement in working capital efficiency and continued tight control of capital expenditure contributed to an improvement in the Group’s return on capital employed from 5.8% in 2003 to 7.6% in 2004. They were also critical in the delivery of a positive cash flow before acquisitions and divestments in 2004, a year ahead of the strategic plan target.

Reshaping of the portfolio also continued during the year. In April the Quest Food Ingredients business was sold to Kerry Group plc for £249m; in October 18.9% of the issued shares of Pakistan PTA Ltd were sold by private placement, raising £26m; and, also in October, ICI exited from Ineos Chlor, eliminating further financial commitments. Finally, in December, we announced the sale of National Starch’s Vinamul Polymers business to Celanese for £111m. The transaction was completed in February 2005.


• This chart shows the change in comparable sales for the International Businesses by strategic quadrant from 2003 to 2004.
• Sizes reflect proportion of total International Businesses’ sales in the quadrant.

ICI ANNUAL REPORT AND ACCOUNTS 2004

Back to Contents

DESCRIPTION OF BUSINESS   9

 


 

  National Starch

 

EXCERPTS ON THIS PAGE:

6-K (2 sections)
Mar 14, 2006
6-K (2 sections)
Mar 16, 2005

RELATED TOPICS for ICI:

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki