Performance Materials Strategy
Performance Materials targets attractive end markets which are driven by megatrends: Digitalization, urbanization, mobility and affluency will drive advanced electronic systems with semiconductors at their heart. As a result, electronics demand is expected to grow for the foreseeable future. Roughly 80% of our sales are currently linked to the electronics market, this includes of course our business units Semiconductor Solutions and Display Solutions, but also parts of Surface Solutions.
The remaining 20% of our sales relate to the automotive and cosmetics market served by Surface Solutions. Also in these segments, the demand will benefit from global trends like the increasing affluency in developing countries.
Within the electronics market, we are active in the field of semiconductor and display solutions, targeting a material market of about € 85 billion. We are already one of the largest players in this field, while operating in selected and highly attractive market segments. In the coming years, we expect that the declining market for liquid crystal materials for TV’s, which is still our largest and one of the most attractive businesses, will continue. After 2019 however, this development is expected to be more than offset by growth in OLED materials and photoresists as well as in semiconductor materials and our solutions around surfaces. As a result, we will be able to achieve an attractive average sales growth of 2-3% after 2019 and to generate EBITDA-pre-margins of roughly 30%, substantially above the special chemical industry average.
We have a solid foundation: a strong global customer network, a proven track record on delivering high-tech solutions, an efficient production infrastructure and highest quality standards throughout the industry. Our innovative solutions allow us to establish intimate and long-term customer relationships understanding the changing requirements of end-customers in markets as diverse as consumer electronics, automotive and cosmetics.
The market segments we operate in, represent a well-balanced mix of new and fast-growing areas (e.g. deposition materials in Semiconductor Solutions or OLED materials in Display Solutions), but also more mature segments where we have established ourselves as the clear market leader (e.g. liquid crystals for Display Solutions or pearlescent pigments used for coatings).