2 Corporate Presentation, August 2012 Table of contents 03 Key Facts & Figures 08 The Clariant Story 15 Business & Products 29 Clariant Excellence 32 Innovation 48 Sustainability 52 Executive Committee
Key Facts & Figures
4 Corporate Presentation, August 2012 A world leader in specialty chemicals Clariant focuses on creating value by investing in future profitable and sustainable growth. KEY FACTS Sales 2011 (CHF m) End 2011 7370 22149 employees EBITDA 2011 (CHF m) before exceptionals Production Sites in 975 44 countries 11 More than 100 Group companies Business Units world-wide
5 Corporate Presentation, August 2012 Profitable growth under way BUSINESS UNITS REGIONAL MARKETS 1 Middle East and Africa Sales 2011: CHF 7 370 million Sales 2011: CHF 7 370 million 2 Performance Chemicals includes the BUs: Additives; Emulsions, Leathe Master Industr Textile Pigme Cataly Functi Perfor Oil & Oil & Mining Services Detergents & Intermediates; Performance Chemicals2 batche mance Mining Chemi nts,& sis & ialr 0 onal 8% Industrial & Europe Paper Specialties Consumer 41% 18% Energy cals, 0 Chemi Consu Materi Servic s, Specialties 0 Asia/Pacific 3 May–December 2011 mer…Functional 22% Masterbatches es, 20% cals,00 als, 0 ,0 15% Materials3 6% Latin Catalysis & Energy3 America MEA1 Pigments 15% North 9% Textile 7% 13% Leather America 9% 4% 13% SALES (CHF m) EBITDA (CHF m) EBIT (CHF m) before exceptionals before exceptionals 2011 7 370 +4% 2011 975 + 8% 2011 717 + 3% 2010 7 120 2010 901 2010 696 MARGIN 2011: 13.2% – 2010: 12.7% MARGIN 2011: 9.7% – 2010: 9.8%
6 Corporate Presentation, August 2012 Active Portfolio Management Acquisition of Octagon ACQUISITIONS Process LLC Acquisition of Prairie Petro-Chem Acquisition of Rite Systems Takeover of and Ricon Colors Süd-Chemie AG Acquisition of Italtinto S.r.l. Acquisition of BTP Takeover of all minority shares in Colex Spolka Acquisition of Hoechst Specialty Acquisition of CIBA Purchase of Oberhausen Chemicals Masterbatches Technology Center CLARIANT SPIN-OFF 1995 1997 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 > AND IPO Divestment of Divestment Divestment of European Emulsion of Electronic Custom Business and Materials Manufacturing Hydrosulfite North America Divestment of Acetyl Building Blocks Divestment of Divestment of Cellulose Ethers Pharmaceutical Fine DIVESTMENTS Chemicals
7 Corporate Presentation, August 2012 Expansion in high-growth countries as key pillar for profitable growth EUROPE CHINA (as part of Asia/Pacific) 14.7% 13% 48.7% 41.1% 3.4% 6% NORTH 39% AMERICA MIDDLE EAST AND AFRICA of Clariant’s employees work 6.5% 8.7% in the emerging 17.1% 21.7% nations of Asia & Latin America ASIA/PACIFIC Sales share by 13% 15.5% region 2005 (excl. Süd-Chemie) LATIN AMERICA Sales share by region 2011 (incl. Süd-Chemie)
The Clariant Story
9 Corporate Presentation, August 2012 History 1886 Foundation Kern & Sandoz (dyes) New operating structure along Pharma, 1995 Nutrition, Agribusiness/Chemicals sectors 1995 Clariant spin-off and IPO 1996 Sandoz and Ciba-Geigy form Novartis 1997 Acquisition of Hoechst Specialty Chemicals 2000 Acquisition of BTP Divestment of parts of Emulsion Business and 2002 Hydrosulfite NA Divestment of Cellulose Ethers and Electronic 2003 Materials 2005 Divestment of Acetyl Building Blocks 2006 Acquisition of CIBA Masterbatches 2006 Divestment of Pharmaceutical Fine Chemicals 2007 Divestment of Custom Manufacturing
10 Corporate Presentation, August 2012 A clearly defined roadmap RECENT HISTORY TARGETS & STRATEGY THROUGHOUT 2015 Targets 4 Pillar Strategy • EBITDA • Improve Profitability Restructuring > 17.0 % • R&D and Innovation • ROIC • Growth in Emerging > Peers Average Markets Continuous • Creating a • Portfolio improvement high-performance Management culture leading to a high-performance company Profitable growth 2008 2009 2010 2011 2012 2013
11 Corporate Presentation, August 2012 Concentration on Clariant’s Core CLARIANT’S CORE IS THE SPECIFIC CHEMISTRY KNOW-HOW OF ITS EMPLOYEES: to design to produce Clariant ingredients providing a desired to market performance in customer products
12 Corporate Presentation, August 2012 Focus on attractive markets and strongly positioned businesses MARKETS • with future perspectives • with strong growth rates BUSINESSES • with competitive positions • with strong pricing power
13 Corporate Presentation, August 2012 Creation of a high-performance culture as basis for a high-performance company CLEAR COMMITMENT TO: • Appreciation as the fundament of the company culture • People, Planet, Performance • Quality • High Performance • Continuous Improvement • Sustainability
14 Corporate Presentation, August 2012 A coherent storyline ROOFTOP: CLARIANT VISION The world-leading company for specialty chemicals Business Strategy: Profitable Growth BODY: CLARIANT Improve profitability R&D and Innovation Growth in emerging Portfolio Management CORE ACTIVITIES markets Corporate Initiatives FOUNDATION: Clariant Excellence BRAND ESSENCE & • Innovation Excellence • Operational Excellence CORPORATE VALUES • People Excellence • Commercial Excellence Brand and Corporate Values • Brand Essence: Appreciation • Brand Values: Performance, People, Planet • Corporate Values
Business & Products
16 Corporate Presentation, August 2012 Overview Business Units ADDITIVES1 CATALYSIS & ENERGY EMULSIONS, DETERGENTS FUNCTIONAL MATERIALS & INTERMEDIATES1 INDUSTRIAL & CONSUMER LEATHER SERVICES MASTERBATCHES OIL & MINING SPECIALTIES SERVICES 1 The Business Units Additives, Emulsions, Detergents & Intermediates and Paper Specialties PAPER SPECIALTIES1 PIGMENTS TEXTILE CHEMICALS form the reporting segment Performance Chemicals
17 Corporate Presentation, August 2012 Additives KEY FIGURES 2011 REGIONAL MARKETS See Performance Chemicals See Performance Chemicals slide 24 slide 24 • The Additives Business Unit is an important supplier of products with functional effects for plastics, coatings and printing inks. • The product range includes flame retardants, waxes and polymer additives for effects in plastics, varnishes and other applications.
18 Corporate Presentation, August 2012 Catalysis & Energy KEY FIGURES 2011 REGIONAL MARKETS Sales (CHF m) 491 Asia Europe 32% 24% EBITDA before excep- 107 Latin America MEA1 tional items (CHF m) 3% 18% North America Employees 2 659 23% 1 Middle East and Africaa • This Business Unit holds a leading position as a producer of catalysis for the chemical, petrochemical, polymer, refinery and automotive industries. • It also supplies products to environmental markets and sells energy storage materials such as for lithium-ion batteries.
19 Corporate Presentation, August 2012 Emulsions, Detergents & Intermediates KEY FIGURES 2011 REGIONAL MARKETS See Performance Chemicals See Performance Chemicals slide 24 side 24 • One of the most important producers of key raw materials for detergents and household cleaners and an important supplier of chemical intermediates. • Additionally, this business unit supplies polymer emulsions for paints, coatings, adhesives, construction and other specialties.
20 Corporate Presentation, August 2012 Functional Materials KEY FIGURES 2011 REGIONAL MARKETS Sales (CHF m) 456 Asia 22% Latin Europe America EBITDA before excep- 59 9% 45% tional items (CHF m) North America 11% MEA1 13% Employees 2 829 1 Middle East and Africaa • This Business Unit is among the market leaders in specialty products and solutions for improving product and efficiency characteristics including adsorbents, solutions for protective packaging and water treatment.
21 Corporate Presentation, August 2012 Industrial & Consumer Specialties KEY FIGURES 2011 REGIONAL MARKETS Sales (CHF m) 1 473 Asia 13% Latin America EBITDA before excep- 251 19% Europe 52% North tional items (CHF m) America 13% MEA1 Employees 1 801 3% 1 Middle East and Africaa • This Business Unit is one of the largest providers of specialty chemicals and application solutions for consumer care and industrial markets such as the agricultural, metalworking, machine-building and aircraft industries. • Its EcoTain® label exemplifies its uncompromising pursuit of the principle of environmental sustainability.
22 Corporate Presentation, August 2012 Leather Services KEY FIGURES 2011 REGIONAL MARKETS Sales (CHF m) 265 Europe Asia 30% 38% EBITDA before excep- 26 1 tional items (CHF m) North MEA 12% Latin America America 1% 19% Employees 595 1 Middle East and Africaa • Leather Services is a leading producer of chemical and services to the leather industry. • The Business Unit offers chemical and technical solutions for the complete leather production process, from beamhouse to finishing.
23 Corporate Presentation, August 2012 Masterbatches KEY FIGURES 2011 REGIONAL MARKETS Sales (CHF m) 1 124 Asia 17% Latin America Europe 9% EBITDA before excep- 129 43% North tional items (CHF m) America 21% MEA1 10% Employees 3 091 1 Middle East and Africaa • Clariant Masterbatches is a leading manufacturer of dye and additive concentrates and technical composites for the plastics industry. • The Business Unit supplies to the packaging, consumer goods, medical, textile and automotive industries.
24 Corporate Presentation, August 2012 Oil & Mining Services KEY FIGURES 2011 REGIONAL MARKETS Asia Sales (CHF m) 620 12% Europe 31% EBITDA before excep- 72 Latin America tional items (CHF m) 33% MEA1 North 9% America 15% Employees 1 000 1 Middle East and Africaa • Oil & Mining Services is one of the most significant providers of products and services to the oil, refinery and mining industries. • The broad and diverse product range includes chemical solutions for deep water exploration to refining which help to reduce costs and improve production efficiency.
25 Corporate Presentation, August 2012 Paper Specialties KEY FIGURES 2011 REGIONAL MARKETS See Performance Chemicals See Performance Chemicals side 24 side 24 • Paper Specialties is one of the largest manufacturer of products for the optical brightness, color, coating and thickness of paper. • It helps improve the optical and functional properties of all types of paper and board with its focused product offering.
26 Corporate Presentation, August 2012 Pigments KEY FIGURES 2011 REGIONAL MARKETS Sales (CHF m) 973 Asia 33% Europe 38% EBITDA before excep- 210 tional items (CHF m) Latin America North MEA1 12% America 5% 12% Employees 1 928 1 Middle East and Africaa • Clariant’s Pigments is a leading global provider of organic pigments, pigment preparations and dyes, which are used for coatings, printing, plastics and other special applications. • These include high-performance pigments and dyes for ink jet and laser printers.
27 Corporate Presentation, August 2012 Textile Chemicals KEY FIGURES 2011 REGIONAL MARKETS Sales (CHF m) 675 Europe Asia 25% 35% EBITDA before excep- 34 MEA1 tional items (CHF m) North 14% Latin America America 6% 20% Employees 2 096 1 Middle East and Africaa • Clariant’s Textile Chemicals supplies specialty chemicals for the pre-treatment, dyeing, printing and finishing of textiles. • The Business Unit improves the properties of garments and other textiles such as high fashion fabrics, home textiles and special technical fabrics.
28 Corporate Presentation, August 2012 Reporting segment Performance Chemicals KEY FIGURES 2011 REGIONAL MARKETS Sales (CHF m) 1 293 Asia 28% Europe 36% EBITDA before excep- 177 Latin tional items (CHF m) America 13% North MEA1 America 10% 13% Employees 2 141 1 Middle East and Africaa • Performance Chemicals includes the Business Units: Additives; Emulsions, Detergents & Intermediates; Paper Specialties.
30 Corporate Presentation, August 2012 Clariant Excellence drives cultural change KEY FACTS Clariant Excellence (CLNX) is the company-wide long-term initiative targeting a culture of continuous improvement Financial Benefits • LeanSigma as key core methodology since 2009 (CHF m) to execute improvement projects 160 • Goal is to sustainably position Clariant at the top levels of performance More than 1900 Projects launched Benefits already realized through Clariant Excellence CHF m 2012 More than 3000 employees trained as 2011 2010 > 100 Belts/project managers 2009 25 50 75 100
31 Corporate Presentation, August 2012 Clariant Excellence Key Elements OPERATIONAL COMMERCIAL INNOVATION PEOPLE EXCELLENCE EXCELLENCE EXCELLENCE EXCELLENCE Striving for Empowering sales Enabling new Enabling our optimum efficiency and marketing to ideas and people to achieve across all of our offer the best solutions for a culture of operating customer service profitable growth. continuous processes. and value. improvement.
33 Corporate Presentation, August 2012 Innovation is the basis for our business success KEY FACTS R&D activities focus on People in R&D Over • Strong Platforms in (end of 2011) 1100 9500 Chemistry, Biotechnology, Catalysis and Process Technology patents • Translation of megatrends in R&D costs 2011 (CHFm) More than 140 sustainable solutions, e.g. renewable 176 energy, renewable raw materials (2.4% of Group sales) scientific collaborations 12 Global R&D Centers
34 Corporate Presentation, August 2012 Global innovation network CENTRAL FUNCTIONS 1 R&D Center Biotechnology 5 R&D Centers Chemistry 3 R&D Centers Process Technologies 3 R&D Centers Catalysis BUSINESS UNIT FUNCTIONS 65 Technical Centers (Application Development)
35 Corporate Presentation, August 2012 Clariant’s Innovation Chain links ‘technology push’ with ‘market pull’ R&D PLATFORMS BUSINESS UNITS • Chemistry • Application Development • Biotechnology • Technical MARKETS Service AND • Catalysis • Production CUSTOMERS • Process Technology • Marketing
36 Corporate Presentation, August 2012 Innovation pipeline triggers profitable growth: Clariant’s idea to market process MORE THAN 260 INNOVATION PROJECTS ACROSS ALL PHASES Scout Scope Execute Commercialize • Ideation • Evaluation • Development • Monitor • Scouting • Deep dive • Pilot • Close • Proof of Concept • Launch SALES POTENTIAL OF INNOVATION PIPELINE (INCLUDING PRODUCT IMPROVEMENT) CHF m/year 2016 2015 2014 2013 2012 0 500 1000
37 Corporate Presentation, August 2012 Clariant Innovation Center – the Global Hub of R&D in Frankfurt, Germany • Central technology hub • Coordination of global R&D activities • Investment: CHF 125 million • Accommodates 500 people • Completion scheduled for 2013
38 Corporate Presentation, August 2012 Innovation Highlights Exolit® – Solving Burning Problems Exolit® Clariant is already a global leader in non-halogenated flame retardants thanks to Exolit®. It is used in particular in the electrical and electronics industries as well as in construction. A new concept has also been developed to improve fire protection of printed circuit boards in the electronics industry.
39 Corporate Presentation, August 2012 Innovation Highlights Synergen® – Green Crop Protection Synergen® Clariant is developing new crop protection products based on renewable raw materials. The special feature: raw material is taken from the plant species for which the crop protection product has been formulated. This enables an increase in crop yields without damaging the plants with artificial substances. As a consequence, this bio-based surfactant product meets the market demand for “green” crop protection.
40 Corporate Presentation, August 2012 Innovation Highlights Biotech Innovations in Cosmetics VitipureTM , Velsan® and ZenvivoTM A unique range of chitosan-based biopolymers developed in collaboration with the company KitoZyme. It is used to make hair and skin cleansing products more moisturizing, gentle and protective.
41 Corporate Presentation, August 2012 Innovation Highlights Life Power® – Superior Battery Materials Life Power® A pioneering, high-perfomance cathode material based on lithium iron phosphate, made by a proprietary process for use in lithium-ion batteries. Compared with other cathode materials, lithium iron phosphate is noted for its high-power density; superior material safety; outstanding durability; favorable material cost; and excellent cycle stability.
42 Corporate Presentation, August 2012 Innovation Highlights EasyWhite Tan – Chrome-free Tanning Agent EasyWhite Tan New tanning system free of aldehyde and chrome with significantly reduced environmental impact and no major trade offs in performance. Leaner tanning process with reduction of process time by 40% and fewer process steps. Environmental benefit by considerable reduction of salt and water consumption. Increasing demand of chrome- free leathers for automotive cars, shoes and fancy goods.
43 Corporate Presentation, August 2012 Innovation Highlights Hydrocerol® – Energy and Materials Saving Hydrocerol® Chemical Foaming Agents New materials are required to reduce energy and material consumption. Clariant develops new additive masterbatches that enable the foaming of polymers with an optimized cell structure improving product properties, reducing the corresponding part weight, and improving sound and insulation properties. This will provide attractive solutions for the automotive, packaging, and construction industry.
44 Corporate Presentation, August 2012 Innovation Highlights Pigments for Color Filter Pigments for Color Filter Consumers want to view brilliant pictures with vibrant colors on their TVs, computers, and mobile phones. Clariant provides optimized pigments for color filters and develops novel red and violet colorant systems for higher brightness and contrast of Liquid Crystal Displays.
45 Corporate Presentation, August 2012 Innovation Highlights Pelletizing Additives for Iron Ores Pelletizing Additives New additives for pelletizing iron ores significantly improve pellet quality by reducing the pellet abrasion and increasing resistance to compression. This minimizes iron losses and improves steel production. Replacement of existing binder reduces silica levels in pellets substantially giving the customers more options for sourcing minerals for pellet production.
46 Corporate Presentation, August 2012 Innovation Highlights Soil Release Polymers Development of new performance polymers which prevent re-deposition of dirt on fabrics during the laundry process and ease the removal of dirt during the next wash. This makes washing more effective and helps to save water and energy. Clariant’s experience in soil release polymers makes us the preferred partner in the detergent industry to develop products for a wide range of different soils on various substrates.
47 Corporate Presentation, August 2012 Innovation Highlights sunliquid® – Bioethanol from cellulose sunliquid® An integrated process being developed by Clariant for manufacturing bioethanol from cellulose obtained from left-over straw waste from food production. With this second generation bio fuel process applying enzyme technologies, Clariant avoids the conflict between food and fuel.
49 Corporate Presentation, August 2012 Sustainability@Clariant goes beyond legal requirements SUSTAINABILITY SUSTAINABILITY SUSTAINABILITY COUNCIL POLICY REPORT Goals and standards Commitment to ethical Rated A+ by the Global for sustainable and sustainable Reporting Initiative. development chaired by operation and the CEO. development.
50 Corporate Presentation, August 2012 Sustainability is Anchored in Clariant’s Strategy KEY FACTS ECONOMY 50% Globally certified quality, environmental CO2 reduction since and safety 2005 management 13% ~70% Energy consumption less occupational SOCIETY ENVIRONMENT reduction since 2007 accidents since 2007 Life-cycle thinking regarding our business activities, products and services
51 Corporate Presentation, August 2012 Environmental Targets 2020
53 Corporate Presentation, August 2012 A highly experienced Executive Committee Hariolf Kottmann, CEO Patrick Jany, CFO Christian Kohlpaintner Mathias Lütgendorf since 1 October 2008 since 1 January 2006 since 1 October 2009 since 1 April 2009 Clariant Excellence, Group Finance, Accounting, Treas Additives, Catalysis & Emulsions, Detergents & Legal & Compliance, ury, Tax, Insurances, Infor Energy, Functional Intermediates, Industrial & Group HR, Talent mation Materials, Masterbatches, Pi Consumer Management Review, Technologies, Investor gments, Group Technology Specialties, Leather Group Communications, Relations, Integration Süd- Services, Commercial Services, Oil & Mining Corporate Development, Chemie. Excellence, Innovation Services, Paper Corporate Sustainability & Excellence. Specialties, Textile Regulatory Affairs, People Chemicals, Purchasing, Lo Excellence. gistics, Operational Excellence.
54 Corporate Presentation, August 2012 Disclaimer This presentation contains certain statements that from its vendors on acceptable terms, or at are neither reported financial results nor other all, and to continue to obtain sufficient financing historical information. This presentation also to meet its liquidity needs; and changes in the includes forward-looking statements. political, social and regulatory framework in which Because these forward-looking statements are the Company operates or in economic or subject to risks and uncertainties, actual future technological trends or conditions, including results may differ materially from those expressed currency fluctuations, inflation and consumer in or implied by the statements. Many of these confidence, on a global, regional or national risks and uncertainties relate to factors that are basis. beyond Clariant’s ability to control or estimate Readers are cautioned not to place undue precisely, such as future market reliance on these forward-looking conditions, currency fluctuations, the behavior of statements, which speak only as of the date of other market participants, the actions of this document. Clariant does not undertake any governmental regulators and other risk factors obligation to publicly release any revisions to such as: the timing and strength of new product these forward-looking statements to reflect events offerings; pricing strategies of competitors; the or circumstances after the date of these materials. Companys ability to continue to receive adequate products