First Quarter 2012 results
First Quarter 2012 results
First Quarter 2012 results
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<strong>First</strong> <strong>Quarter</strong> <strong>2012</strong> <strong>results</strong><br />
03 May <strong>2012</strong><br />
Confidential
Agenda<br />
Highlights first quarter<br />
Financial <strong>results</strong><br />
Business performance<br />
Outlook<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Slide 2 / 35
Resilient performance in the first quarter<br />
� Double-digit sales growth driven by acquisitions<br />
► Non-cyclical Business Units with mid-single digit sales growth, Oil & Mining Services with<br />
double-digit growth in LC<br />
► Cyclical growth BUs and structurally challenged BUs with ongoing weakness but<br />
improvement towards the end of the quarter<br />
► Solid growth in all regions except Europe where weakness continues<br />
� Robust margins as non-cyclical businesses continued to perform well, despite soft economic<br />
conditions especially in Europe<br />
► EBITDA margin before exceptional items at 12.1% compared to an extraordinarily high<br />
16.1% one year ago, as seasonal businesses were weaker, leading to higher SG&A costs<br />
in percentage of sales<br />
► Catalysis & Energy with very strong order book and order backlog<br />
� Outlook for <strong>2012</strong> confirmed<br />
► Progressive improvement in trading conditions expected as the year moves on<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Highlights first quarter Slide 3 / 35
Agenda<br />
Highlights first quarter<br />
Financial <strong>results</strong><br />
Business performance<br />
Outlook<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Slide 4 / 35
Key figures first quarter<br />
Sales in CHF mn 1 945 1 717<br />
Gross margin in % of sales 28.2 29.8<br />
EBITDA before exceptionals in CHF mn 28.7% 236 29.2% 277<br />
– margin in % of sales<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
16.1<br />
Net income in CHF mn 20 120<br />
Operating cash flow* in CHF mn 6 22<br />
Q1/12 Q1/11 in CHF in LC<br />
12.1<br />
EBIT before exceptionals in CHF mn 28.7% 160 29.2% 230<br />
– margin in % of sales<br />
8.2<br />
13.4<br />
+13%<br />
* starting from <strong>2012</strong> interest paid and interest received are reported as part of financing cash flow; prior year information has been reclassified accordingly<br />
Financial <strong>results</strong> first quarter<br />
+18%<br />
–15% –9%<br />
–30% –25%<br />
Slide 5 / 35
Double-digit sales growth in local<br />
currencies<br />
Sales growth in local currencies<br />
� Sales mix:<br />
– Volume –6%<br />
– Price +4%<br />
– Acq./div. +20%<br />
– Currency –5%<br />
� Double-digit sales growth in LC driven by<br />
Süd-Chemie acquisition<br />
� Organic LC sales growth –2%, mainly due<br />
to lower volumes in the cyclical part of the<br />
portfolio and weakness in Europe<br />
� Sequentially improving volumes:<br />
–6% in Q1/12 vs. –12% in Q4/11<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Q1/12<br />
+18%<br />
Total sales Q1 <strong>2012</strong>: CHF 1 945 mn<br />
incl. China<br />
114 / +16%<br />
+23%<br />
+21%<br />
incl. Brazil<br />
146/ +20%<br />
Sales growth in local currencies<br />
Q1/11<br />
+5%<br />
incl. Germany<br />
254 / +4%<br />
Asia/<br />
Pacific<br />
421 Europe, Middle<br />
Latin<br />
America<br />
311<br />
North<br />
America<br />
283<br />
+39%<br />
East & Africa<br />
930<br />
+11%<br />
Middle East & Africa<br />
168 / +43%<br />
Financial <strong>results</strong> first quarter Slide 6 / 35
Decent margins in challenging environment<br />
Gross margin<br />
EBITDA margin before exceptionals<br />
� Lower gross margin year-on-year due to unfavorable volume/mix effect and lower<br />
absorption of production costs<br />
� Positive margin contribution from dynamics of sales prices vs. raw material costs<br />
� Sequential recovery in gross margin from underlying 26.0%* in Q4 2011<br />
� SG&A costs at 18.1% in Q1 <strong>2012</strong> compared to 15.0% in Q1 2011, resulting from<br />
one-time gains in Q1 2011 and the seasonality of catalysts business with lower sales<br />
in the first half-year compared to the second half-year<br />
* excluding an additional charge of CHF 43 mn as a result of the sale of Süd-Chemie inventories revalued to fair value less cost to sell<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Q1/12<br />
28.2%<br />
12.1%<br />
Q1/11<br />
29.8%<br />
16.1%<br />
Financial <strong>results</strong> first quarter Slide 7 / 35
Operating cash flow and Financial result<br />
Operating cash flow* in CHF mn<br />
Financial result in CHF mn<br />
� Lower Operating Cash Flow on normal seasonal inventory build-up and in anticipation<br />
of improving demand<br />
� Cash out for restructuring at CHF 38 million, mainly for the integration of Süd-Chemie<br />
and the closure of the Textiles production plant in Muttenz (CH)<br />
� Net financial result at CHF –55 million vs. CHF –24 million in Q1 2011, due to higher<br />
gross debt and CHF –19 million impact from currencies vs. CHF –4 million in Q1 2011<br />
� Net debt flat at CHF 1.754 bn vs. CHF 1.740 bn at year-end 2011, gearing of 59%<br />
* starting from <strong>2012</strong> interest paid and interest received are reported as part of financing cash flow; prior year information has been reclassified accordingly<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Q1/12<br />
6<br />
–55<br />
Q1/11<br />
22<br />
–24<br />
Financial <strong>results</strong> first quarter Slide 8 / 35
Agenda<br />
Highlights first quarter<br />
Financial <strong>results</strong><br />
Business performance<br />
Outlook<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Slide 9 / 35
BU sales, EBITDA / EBIT margins<br />
<strong>First</strong> quarter <strong>2012</strong><br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Sales Change EBITDA* margin EBIT* margin<br />
Business Unit / Reporting Segment: CHF mn % CHF % LC Q1/12 Q1/11 Q1/12 Q1/11<br />
BU Industrial & Consumer Specialties 392 –2 +3 16.1 19.8 13.8 17.5<br />
BU Masterbatches 296 –4 0 13.5 14.2 11.1 12.0<br />
BU Pigments 230 –11 –7 17.4 24.7 14.8 22.0<br />
BU Textile Chemicals 162 –14 –9 3.7 10.1 0.6 7.4<br />
BU Oil & Mining Services 173 +17 +24 11.6 12.2 11.0 11.5<br />
BU Leather Services 62 –14 –9 6.5 12.5 4.8 11.1<br />
Performance Chemicals** 321 –6 –1 14.3 17.4 11.5 14.7<br />
BU Functional Materials 178 – – 16.9 – 10.7 –<br />
BU Catalysis & Energy 131 – – 13.7 – 0.8 –<br />
Group total 1 945 +13 +18 12.1 16.1 8.2 13.4<br />
* before exceptional items ** the Performance Chemicals segment includes the three Business Units: Additives; Emulsions Detergents & Intermediates; and Paper Specialties<br />
Business performance Slide 10 / 35
Non-cyclical growth businesses – resilient<br />
Q1 <strong>2012</strong> (approx. 60% of EBITDA*)<br />
Industrial & Consumer<br />
Specialties<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
� Personal Care, Construction Chemicals and Crop Protection<br />
experienced good growth<br />
� Weak de-icing business impacted by unfavorable weather<br />
conditions with a mild winter in North America and a cold<br />
but dry winter in Europe<br />
Oil & Mining Services � Particularly strong demand from the Middle East, Latin<br />
America and North America<br />
� Sales growth was driven by Oil Services and by Mining<br />
Services; the refinery business was adversely impacted by<br />
unfavorable weather conditions<br />
Additives � Additives benefitted from good demand for waxes and<br />
continued solid business in the non-halogenated flame<br />
retardants business from Asia<br />
Catalysis & Energy � Normal seasonality with lower demand in the first two<br />
quarters compared to the second half-year<br />
� Order intake and backlog above previous year<br />
Functional Materials � Growing demand, strength in Performance Packaging,<br />
strong demand for Food and Feed Additives and<br />
a recovery in the Water business compared to Q4 2011<br />
* in percent of Group EBITDA, before exceptional items<br />
Business performance Slide 11 / 35
Cyclical growth BUs impacted by softening<br />
demand (approx. 30% of EBITDA*)<br />
Pigments � Most business lines were impacted by softening of demand,<br />
however, strong rebound for pigments for decorative<br />
coatings in the United States and recovery in demand for<br />
Plastics has started in all major regions<br />
� Demand in the Printing segment continued to be weak<br />
Masterbatches � Sales in most of the regions slightly improved<br />
� North America, MEA and Asia/Pacific contributed<br />
positively to the result, the latter supported by strong growth<br />
in China and Indonesia<br />
Leather Services � Demand was very weak at the beginning of Q1 <strong>2012</strong> but<br />
improved throughout the quarter<br />
� Luxury goods and the relevant automotive segment<br />
remained robust<br />
� Growing interest for chrome free tanning system EasyWhite Tan<br />
* in percent of Group EBITDA, before exceptional items<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Business performance Slide 12 / 35
Structurally challenged BUs with a mixed<br />
performance (approx. 10% of EBITDA*)<br />
Textile Chemicals � Demand for technical textiles particularly in the automotive<br />
sector remained robust, orders from the apparel sector<br />
continued to be sluggish<br />
� Production of Textile Chemicals and Dyes in Muttenz<br />
(Switzerland) has been stopped during Q1 <strong>2012</strong><br />
Paper � Demand in Paper Specialties was lower as customers have<br />
reduced their output due to weaker paper consumption<br />
and the industry still faces excess capacity<br />
� Slow recovery begun in Q4 2011 continues in Q1 <strong>2012</strong><br />
ED&I*<br />
The Business Units Emulsions<br />
Detergents & Intermediates have<br />
been combined to the BU ED&I,<br />
effective February 1, <strong>2012</strong><br />
* in percent of Group EBITDA, before exceptional items<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
� In Emulsions Detergents & Intermediates (ED&I)<br />
underlying demand in all business but TAED was good<br />
� D&I continued with good demand in the Intermediates<br />
business for Agrochemicals and Pharmaceuticals<br />
Business performance Slide 13 / 35
Agenda<br />
Highlights first quarter<br />
Financial <strong>results</strong><br />
Business performance<br />
Outlook<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Slide 14 / 35
<strong>2012</strong> – further steps to increase quality,<br />
growth potential and profitability of portfolio<br />
Focusing on…<br />
markets with high future perspectives<br />
markets with strong growth rates<br />
businesses with competitive positions<br />
businesses with strong pricing power<br />
Process to implement one of the strategic options in the mid- to long-term has been initiated:<br />
BUs are currently prepared to operate independently from the Clariant Group.<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
… <strong>results</strong> in<br />
�� Evaluation of strategic options for Business<br />
Units Emulsions Detergents & Intermediates,<br />
Paper Specialties and Textile Chemicals<br />
to be implemented in the mid- to long-term<br />
�� Bolt-on acquisitions to strengthen Business<br />
Units with above average growth potential<br />
and a high profitability<br />
Outlook Slide 15 / 35
Outlook <strong>2012</strong><br />
Environment<br />
� Base case scenario assumptions:<br />
► After a weak start into <strong>2012</strong>, the global economy will progressively strengthen<br />
in the course of the year<br />
► Raw material costs are expected to rise in the mid single-digit range<br />
► Exchange rates should remain stable compared to the beginning of <strong>2012</strong><br />
Clariant – guidance <strong>2012</strong> confirmed<br />
For the full-year <strong>2012</strong>, Clariant expects further sales growth in local currency and a sustained<br />
profitability. Results for the first half-year are expected to be lower compared to the high base of<br />
the first half of 2011, with an improvement in the second half-year <strong>2012</strong>.<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Outlook Slide 16 / 35
Calendar of upcoming corporate events<br />
21/22 June <strong>2012</strong> Capital Markets & Media Day, Munich<br />
26 July <strong>2012</strong> Half Year <strong>2012</strong> Results<br />
31 October <strong>2012</strong> Nine Months <strong>2012</strong> Results<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Slide 17 / 35
IR contacts<br />
Dr. Ulrich Steiner<br />
Head Group Communications & IR<br />
Phone +41 (0) 61 469 67 45<br />
Mobile +41 (0) 79 297 27 07<br />
E-mail ulrich.steiner@clariant.com<br />
Dr. Siegfried Schwirzer<br />
Investor Relations Officer<br />
Phone +41 (0) 61 469 67 49<br />
Mobile +41 (0) 79 718 45 98<br />
E-mail siegfried.schwirzer@clariant.com<br />
Edith Schwab<br />
Phone +41 (0) 61 469 67 48<br />
Fax +41 (0) 61 469 67 67<br />
E-mail edith.schwab@clariant.com<br />
Mirjam Grieder<br />
Phone +41 (0) 61 469 67 66<br />
Fax +41 (0) 61 469 67 67<br />
E-mail mirjam.grieder@clariant.com<br />
Clariant International Ltd Hardstrasse 61 4133 Pratteln Switzerland investor-relations@clariant.com<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Slide 18 / 35
Backup Slides –<br />
<strong>First</strong> <strong>Quarter</strong> <strong>2012</strong> Results<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)
Clariant’s products and services are<br />
delivered through 11 Business Units<br />
Additives<br />
A leading provider of<br />
flame retardants, waxes<br />
and polymer additives for<br />
effects in plastics,<br />
coatings and other<br />
applications.<br />
Catalysis & Energy<br />
A leading provider of<br />
catalysts for chemical,<br />
petrochemical, polymer,<br />
refinery and automotive<br />
industries as well as<br />
materials for<br />
environmental markets<br />
and solutions for energy<br />
efficiency and energy<br />
storage.<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Emulsions Detergents &<br />
Intermediates*<br />
A leading supplier of key<br />
raw materials and<br />
intermediates to the<br />
detergents, agro and<br />
pharmaceutical industries;<br />
water-based emulsions/<br />
polymer dispersions for<br />
paints, coatings,<br />
adhesives, construction,<br />
sealants and for textile,<br />
leather & paper industries<br />
* the Business Units Emulsions and Detergents & Intermediates have been combined to the BU ED&I, effective February 1, <strong>2012</strong><br />
Backup slides<br />
Functional Materials<br />
A leading provider of<br />
specialty products and<br />
solutions to enhance<br />
products and processes in<br />
various industries.<br />
Slide 20 / 35
Clariant’s products and services are<br />
delivered through 11 Business Units<br />
Industrial & Consumer<br />
Specialties<br />
A leading provider of<br />
specialty chemicals and<br />
application solutions<br />
for consumer care and<br />
industrial markets.<br />
Leather Services<br />
A leading supplier of<br />
chemicals and services to<br />
the leather industry.<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Masterbatches<br />
A leader in coloration and<br />
functionality of plastics,<br />
supplying the packaging,<br />
consumer goods, medical,<br />
textile and automotive<br />
sectors.<br />
Backup slides<br />
Oil and Mining Services<br />
A leading provider of<br />
products and services to<br />
the oil, refinery and mining<br />
industries.<br />
Slide 21 / 35
Clariant’s products and services are<br />
delivered through 11 Business Units<br />
Paper Specialties<br />
A leading provider of<br />
optical brighteners,<br />
colorants and functional<br />
chemicals for paper and<br />
packaging applications.<br />
Pigments<br />
A leading global provider<br />
of organic pigments and<br />
dyes for coatings, paints,<br />
printing, plastics and<br />
special applications.<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Textile Chemicals<br />
A leading producer of<br />
dyes and chemicals for<br />
the textile industry<br />
including apparel,<br />
upholstery, fabrics and<br />
carpets.<br />
Backup slides<br />
Slide 22 / 35
Peer group ROIC 2011<br />
Measuring performance<br />
based on relative ROIC*<br />
Croda<br />
Albemarle<br />
Wacker<br />
Arkema<br />
BASF<br />
Evonik<br />
Lanxess<br />
Celanese<br />
CLARIANT<br />
Rockwood<br />
Altana<br />
DSM<br />
Cytec<br />
Huntsman<br />
Dow…<br />
Chemtura<br />
Ecolab<br />
Akzo Nobel<br />
Solvay<br />
Kemira<br />
PolyOne<br />
9.5<br />
9.5<br />
8.6<br />
8.3<br />
7.8<br />
7.1<br />
6.7<br />
6.5<br />
5.9<br />
5.5<br />
10.9<br />
2011 average<br />
12.4%<br />
13.1<br />
12.4<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
17.9<br />
16.9<br />
16.2<br />
15.2<br />
14.9<br />
14.6<br />
0 5 10 15 20 25 30 35<br />
* source: calculated from company <strong>results</strong> based on FY 2011 data; Clariant: excluding Süd-Chemie ROIC: 17.1%<br />
23.4<br />
29.2<br />
Backup slides<br />
Slide 23 / 35
Key financials – first quarter <strong>2012</strong><br />
<strong>First</strong> quarter<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
<strong>2012</strong> 2011<br />
CHF mn % of sales CHF mn % of sales<br />
Sales 1 945 100% 1 717 100%<br />
Local currency growth (LC) 18%<br />
- Organic growth rate* –2%<br />
- Acquisitions/Divestments 20%<br />
Currencies –5%<br />
Gross profit 548 28.2% 511 29.8%<br />
EBITDA before exceptionals 236 12.1% 277 16.1%<br />
EBITDA 206 10.6% 259 15.1%<br />
Operating income before exceptionals 160 8.2% 230 13.4%<br />
Operating income 123 6.3% 201 11.7%<br />
Net income 20 1.0% 120 7.0%<br />
Operating cash flow** 6 22<br />
* organic growth: volume and price effects excluding the impact of changes in foreign currency exchange rates and acquisitions/divestments<br />
** starting from <strong>2012</strong> interest paid and interest received are reported as part of financing cash flow; prior year information has been reclassified accordingly<br />
Backup slides<br />
Slide 24 / 35
Cash flow – first quarter <strong>2012</strong><br />
<strong>First</strong> quarter<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
<strong>2012</strong> 2011<br />
CHF mn CHF mn<br />
Net income 20 120<br />
Depreciation, amortization and impairment 83 58<br />
Other 30 62<br />
Payments for restructuring –38 –35<br />
Operating cash flow before working capital changes 95 205<br />
Changes in working capital and provisions –89 –183<br />
Operating cash flow* 6 22<br />
Cash flow from investing activities –45 250<br />
thereof: property, plant & equipment –54 –47<br />
thereof: changes in current financial assets 13 329<br />
thereof: acquisitions, disposals and other –4 –32<br />
Cash flow before financing –39 272<br />
* starting from <strong>2012</strong> interest paid and interest received are reported as part of financing cash flow; prior year information has been reclassified accordingly.<br />
Backup slides<br />
Slide 25 / 35
Financial result – first quarter <strong>2012</strong><br />
<strong>First</strong> quarter<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
<strong>2012</strong> 2011<br />
CHF mn CHF mn<br />
Interest income 5 4<br />
Other financial income 2 1<br />
Total financial income 7 5<br />
Interest expenses –36 –21<br />
Other financial expenses –7 –4<br />
Currency result, net –19 –4<br />
Total financial expenses –62 –29<br />
Total financial result –55 –24<br />
Backup slides<br />
Slide 26 / 35
Sales and EBITDA margins by business<br />
unit – first quarter <strong>2012</strong><br />
<strong>First</strong> quarter<br />
Business Unit / Segment:<br />
CHF mn<br />
Sales<br />
% LC<br />
EBITDA**<br />
% of Group<br />
EBITDA margin**<br />
% <strong>2012</strong> % 2011<br />
BU Industrial & Consumer Specialties 392 +3 24 16.1 19.8<br />
BU Masterbatches 296 0 15 13.5 14.2<br />
BU Pigments 230 –7 15 17.4 24.7<br />
BU Textile Chemicals 162 –9 2 3.7 10.1<br />
BU Oil & Mining Services 173 +24 8 11.6 12.2<br />
BU Leather Services 62 –9 1 6.5 12.5<br />
Performance Chemicals* 321 –1 17 14.3 17.4<br />
Functional Materials 178 – 11 16.9 –<br />
Catalysis & Energy 131 – 7 13.7 –<br />
Group total 1 945 +18 100 12.1 16.1<br />
Sales in % of group<br />
Industrial & Consumer<br />
Specialties<br />
20%<br />
15%<br />
Masterbatches<br />
12%<br />
Pigments<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
EBITDA**<br />
Industrial & Consumer<br />
Specialties<br />
Backup slides<br />
Masterbatches<br />
Catalysis & Energy 7%<br />
9%<br />
Functional Materials<br />
17% 3%<br />
8% Textile Chemicals<br />
9%<br />
Oil & Mining Services<br />
Catalysis & Energy 7%<br />
11%<br />
Functional Materials<br />
17%<br />
15% Pigments<br />
2%<br />
Textile Chemicals<br />
8%<br />
1% Oil & Mining Services<br />
Performance Chemicals*<br />
Leather Services<br />
Performance Chemicals*<br />
Leather Services<br />
* the Performance Chemicals segment includes the three Business Units: Additives; Emulsions Detergents & Intermediates; and Paper Specialties<br />
** before exceptional items<br />
24%<br />
15%<br />
Slide 27 / 35
ICS, Masterbatches, Pigments, Textile<br />
Chemicals – first quarter <strong>2012</strong><br />
Industrial & Consumer Specialties<br />
Sales in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
Q1<br />
2011<br />
63<br />
392 +3% 400<br />
–15%<br />
16.1%<br />
Masterbatches<br />
Sales in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
Q1<br />
2011<br />
296 0% 309<br />
EBITDA bef. exc. in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Q1<br />
2011<br />
79<br />
19.8%<br />
EBITDA bef. exc. in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
40<br />
13.5%<br />
Change<br />
(LC)<br />
–4%<br />
Q1<br />
2011<br />
44<br />
14.2%<br />
Pigments<br />
Sales in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
Q1<br />
2011<br />
230 –7% 259<br />
Textile Chemicals<br />
Sales in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
Q1<br />
2011<br />
162 –9% 189<br />
EBITDA bef. exc. in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
40<br />
17.4%<br />
EBITDA bef. exc. in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
6<br />
3.7%<br />
Backup slides<br />
Change<br />
(LC)<br />
–34%<br />
Change<br />
(LC)<br />
–67%<br />
Q1<br />
2011<br />
64<br />
24.7%<br />
Q1<br />
2011<br />
19<br />
10.1%<br />
Slide 28 / 35
Oil & Mining Services, Leather Services,<br />
Performance Chemicals – first quarter <strong>2012</strong><br />
Oil & Mining Services<br />
Sales in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
Q1<br />
2011<br />
173 +24% 148<br />
Leather Services<br />
Sales in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
Q1<br />
2011<br />
EBITDA bef. exc. in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
20<br />
11.6%<br />
Change<br />
(LC)<br />
4<br />
62 –9% 72<br />
–57%<br />
6.5%<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Q1<br />
2011<br />
18<br />
12.2%<br />
EBITDA bef. exc. in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
+19%<br />
Change<br />
(LC)<br />
Q1<br />
2011<br />
9<br />
12.5%<br />
Performance Chemicals*<br />
Sales in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
Q1<br />
2011<br />
EBITDA bef. exc. in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
46<br />
321 -1% 340 –18%<br />
14.3%<br />
* the Performance Chemicals segment includes the three Business Units: Additives; Emulsions; Detergents & Intermediates; and Paper Specialties<br />
Backup slides<br />
Q1<br />
2011<br />
59<br />
17.4%<br />
Slide 29 / 35
Functional Materials, Catalysis & Energy –<br />
first quarter<br />
Functional Materials<br />
Sales in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
Q1<br />
2011<br />
178 – –<br />
Catalysis & Energy<br />
Sales in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
Change<br />
(LC)<br />
Q1<br />
2011<br />
EBITDA bef. exc. in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
30<br />
16.9%<br />
Change<br />
(LC)<br />
18<br />
131 – –<br />
–<br />
13.7%<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Q1<br />
2011<br />
EBITDA bef. exc. in CHF mn<br />
Q1<br />
<strong>2012</strong><br />
–<br />
Change<br />
(LC)<br />
–<br />
Q1<br />
2011<br />
–<br />
Backup slides Slide 30 / 35
Debt maturity profile as of 31 March <strong>2012</strong><br />
Liquidity headroom<br />
Cash*<br />
1400<br />
1200<br />
1000<br />
800<br />
600<br />
400<br />
200<br />
in CHF mn<br />
* incl. near cash assets<br />
0<br />
1280<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Maturities of financial debt<br />
1400<br />
1200<br />
1000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
318<br />
250<br />
98<br />
710 1<br />
280<br />
322 1<br />
199<br />
1<br />
149<br />
Uncommitted & other loans<br />
CHF bond<br />
Convertible bond<br />
EUR bond<br />
Certificate of indebtedness<br />
<strong>2012</strong> 2013 2014 2015 2016 2017 2018<br />
Backup slides<br />
598<br />
99<br />
8<br />
Slide 31 / 35
Sales and cost structure*<br />
Global sales distribution in % Global cost distribution in %<br />
JPY<br />
4%<br />
CHF<br />
0%<br />
Emerging<br />
Markets<br />
20%<br />
USD<br />
32%<br />
EUR<br />
44%<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
JPY<br />
2%<br />
CHF<br />
7%<br />
Emerging<br />
Markets<br />
17%<br />
These distributions represent an approximation to total cash in- and out-flows and are closely linked to transaction exposures * excluding Süd-Chemie, FY 2011<br />
USD<br />
25%<br />
Backup slides<br />
EUR<br />
49%<br />
Slide 32 / 35
Top 20 products in percentage of total<br />
raw material costs*<br />
Ranking Product<br />
1 Ethylene<br />
2 Propyleneglycol<br />
3 Ethylene oxide<br />
4 Polyethylene<br />
5 N-Paraffin<br />
6 Cetyl/dodecyl alcohol<br />
7 Titanium dioxide<br />
8 Acetic anhydride<br />
9 Propylene oxide<br />
10 Sodium hydroxide<br />
11 Vinyl acetate<br />
12 Acetaldehyde<br />
13 Butyl acrylate<br />
14 Phthalocyaninecopper salt<br />
15 Tallow fatty acid<br />
16 Acetic Acid<br />
17 Ethylenediamine<br />
18 Phosphorus white<br />
19 Amsonic Acid (DAST)<br />
20 Carbon black<br />
� Over 16 400 products in total<br />
� Approx. 180 products account for 50% of<br />
material costs<br />
� Approx. 2 800 products account for 90% of material costs<br />
* excluding Süd-Chemie, FY 2011<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
18 %<br />
14%<br />
68 %<br />
Top 5 Top 6 - 20 Others<br />
Backup slides Slide 33 / 35
Raw material classification – dependence<br />
on oil price decreased<br />
Dependence on oil price*<br />
“Old Clariant” vs. Clariant incl.<br />
Süd-Chemie<br />
Independent Directly<br />
dependent<br />
57%<br />
52%<br />
* FY 2011 ** excluding Süd-Chemie<br />
17%<br />
15%<br />
31% 28%<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Indirectly<br />
dependent<br />
via feedstock<br />
(e.g. benzene,<br />
phenol)<br />
Specialty<br />
Chemicals<br />
33%<br />
Product groups**<br />
Base Chemicals<br />
15%<br />
Backup slides<br />
10%<br />
42%<br />
Natural &<br />
Renewable<br />
Chemicals<br />
Petro Chemicals<br />
Slide 34 / 35
Disclaimer<br />
This presentation contains certain statements that are neither reported financial <strong>results</strong> nor other<br />
historical information. This presentation also includes forward-looking statements.<br />
Because these forward-looking statements are subject to risks and uncertainties, actual future<br />
<strong>results</strong> may differ materially from those expressed in or implied by the statements. Many of these<br />
risks and uncertainties relate to factors that are beyond Clariant’s ability to control or estimate<br />
precisely, such as future market conditions, currency fluctuations, the behavior of other market<br />
participants, the actions of governmental regulators and other risk factors such as: the timing and<br />
strength of new product offerings; pricing strategies of competitors; the Company's ability to<br />
continue to receive adequate products from its vendors on acceptable terms, or at all, and to<br />
continue to obtain sufficient financing to meet its liquidity needs; and changes in the political,<br />
social and regulatory framework in which the Company operates or in economic or technological<br />
trends or conditions, including currency fluctuations, inflation and consumer confidence, on a<br />
global, regional or national basis.<br />
Readers are cautioned not to place undue reliance on these forward-looking statements, which<br />
speak only as of the date of this document. Clariant does not undertake any obligation to publicly<br />
release any revisions to these forward-looking statements to reflect events or circumstances<br />
after the date of these materials.<br />
Q1 <strong>2012</strong>, Analysts Presentation, 03 May <strong>2012</strong> (Copyright Clariant. All rights reserved.)<br />
Slide 35 / 35