Outlook 2016

2016 will be a year of progress towards our 2018 targets. Demand in our markets is expected to grow between 2 percent to 4 percent taking into account the challenging economic headwinds in selected emerging markets that will continue. This further illustrates that our merger was an essential first step in building a new business, ready to exploit opportunities in the coming years.

This year our strategic plan will gain further momentum and in 2016 we expect:

  • CAPEX to remain below CHF 2.0 billion
  • Incremental synergies of more than CHF 450 million of operating EBITDA
  • Our pricing recovery actions and commercial excellence initiatives will demonstrate tangible results in 2016.
  • Net debt expected to decrease to around CHF 13.0 billion at year end, including the effect of our planned divestment program
  • CHF 3.5 billion divestment program to be completed with more than one third already secured
  • We are committed to maintaining a solid investment grade rating and commensurate to this rating, returning excess cash to shareholders, notably with a progressive dividend policy

We reconfirm our commitment to the 2018 targets announced in November 2015.