Corporate presentation english

Sustain – Improve – Create ValueCORPORATEPRESENTATION 2012

Corporate Presentation, August 2012

Table of contents

2

03 Key Facts & Figures

08 The Clariant Story

15 Business & Products

29 Clariant Excellence

32 Innovation

48 Sustainability

52 Executive Committee

Key Facts & Figures


A world leader in specialty chemicals

4

Clariant focuses on creating value by investing in future profitable and sustainable growth.

KEY FACTS

Sales 2011 (CHF m)

7370

More than

100Group companies world-wide

EBITDA 2011 (CHF m)before exceptionals

975

End 2011

22149employees

Production Sites in

44countries

11 Business Units


Profitable growth under way

5

EBITDA (CHF m) before exceptionals

2011 + 8%

2010

MARGIN 2011: 13.2% – 2010: 12.7%

975

901

EBIT (CHF m)before exceptionals

2011 + 3%

2010

MARGIN 2011: 9.7% – 2010: 9.8%

717

696

SALES (CHF m)

2011 + 4 %

2010

7 370

7 120

REGIONAL MARKETSSales 2011: CHF 7 370 million

BUSINESS UNITSSales 2011: CHF 7 370 million

1 Middle East and Africa

2 Performance Chemicals includes

the BUs: Additives; Emulsions,

Detergents & Intermediates;

Paper Specialties

3 May–December 2011

Textile9%Leather

4%

Pigments13%

Masterbatches15%

Performance Chemicals2

18%

Oil & Mining Services

8% Industrial & Consumer Specialties

20%

Functional Mate-rials36%Catalysis &

Energy37%

Europe41%

MEA19%

NorthAmerica13%

LatinAmerica15%

Asia/Pacific22%


Acquisition ofHoechst SpecialtyChemicals

Acquisitionof BTP

Divestment ofCellulose Ethers

Divestment of Electronic Materials

Divestment ofAcetyl BuildingBlocks

Acquisition of CIBA Masterbatches

Divestment ofCustomManufacturing

Acquisition of Rite Systems and Ricon Colors

Acquisition of PrairiePetro-Chem

Takeover ofSüd-Chemie AG

Acquisition of Italtinto S.r.l.

Takeover of all minority shares in Colex Spolka

Purchase of Oberhausen Technology Center

Acquisition of OctagonProcess LLC

Divestment ofEuropean EmulsionBusiness andHydrosulfite North America

Divestment of Pharmaceutical Fine Chemicals

ACQUISITIONS

DIVESTMENTS

CLARIANTSPIN-OFFAND IPO

Active Portfolio Management

6

1997 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 20111995 >


Expansion in high-growth countries as key pillar for profitable growth

7

Sales share by region 2005 (excl. Süd-Chemie)

Sales share by region 2011 (incl. Süd-Chemie)

39%of Clariant’s employees workin the emerging nations of Asia &Latin America

13%

6.5%

14.7%

3.4%

17.1%

48.7%

15.5%

8.7%

13% 6%41.1%

21.7%

LATIN AMERICA

MIDDLE EAST AND AFRICA

NORTH AMERICA

EUROPE

CHINA(as part of Asia/Pacific)

ASIA/PACIFIC

The Clariant Story

History

9

1886 Foundation Kern & Sandoz (dyes)

1995New operating structure along Pharma, Nutrition, Agribusiness/Chemicals sectors

1996 Sandoz and Ciba-Geigy form Novartis

1995

1997 Acquisition of Hoechst Specialty Chemicals

2000 Acquisition of BTP

2002Divestment of parts of Emulsion Business and Hydrosulfite NA

2003Divestment of Cellulose Ethers and Electronic Materials

Clariant spin-off and IPO

2005 Divestment of Acetyl Building Blocks

2006 Divestment of Pharmaceutical Fine Chemicals

2007 Divestment of Custom Manufacturing

2006 Acquisition of CIBA Masterbatches



A clearly defined roadmap

RECENT HISTORY

10

Continuousimprovement

Profitable growth

Restructuring

2009 2010 2011 20122008 2013

TARGETS & STRATEGY THROUGHOUT 2015

4 Pillar StrategyTargets

• Improve Profitability

• R&D and Innovation

• Growth in Emerging Markets

• Portfolio Management

• EBITDA> 17.0 %

• ROIC> Peers Average

• Creating a high-performance culture leading to a high-performance company

Concentration on Clariant’s Core

CLARIANT’S CORE IS THE SPECIFIC CHEMISTRY KNOW-HOW OF ITS EMPLOYEES:

11

to market

to design

to produce

Clariant ingredients providing a desired performance in customer products


Focus on attractive markets and strongly positioned businesses


• with future perspectives• with strong growth rates

• with competitive positions• with strong pricing power

MARKETS

BUSINESSES


Creation of a high-performance culture as basis for a high-performance company

CLEAR COMMITMENT TO:

13

• Appreciation as the fundament of the company culture

• People, Planet, Performance

• Quality

• High Performance

• Continuous Improvement

• Sustainability

A coherent storyline

14

ROOFTOP: CLARIANT VISION

Growth in emerging markets

Portfolio ManagementImprove profitability R&D and Innovation

Business Strategy: Profitable Growth

The world-leadingcompany

for specialty chemicals

• Innovation Excellence• People Excellence

Brand and Corporate Values

• Brand Essence: Appreciation

• Brand Values: Performance, People, Planet

• Corporate Values

Clariant Excellence

• Operational Excellence• Commercial Excellence

Corporate Initiatives

BODY: CLARIANT CORE ACTIVITIES

FOUNDATION: BRAND ESSENCE & CORPORATE VALUES


Business & Products


Overview Business Units

16

INDUSTRIAL & CONSUMER SPECIALTIES

LEATHER SERVICES MASTERBATCHES OIL & MINING SERVICES

ADDITIVES1 CATALYSIS & ENERGY EMULSIONS, DETERGENTS & INTERMEDIATES1

FUNCTIONAL MATERIALS

PAPER SPECIALTIES1 PIGMENTS TEXTILE CHEMICALS

1 The Business Units Additives, Emulsions, Detergents & Intermediates and Paper Specialtiesform the reporting segment Performance Chemicals


Additives

17

• 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.

KEY FIGURES 2011

See Performance Chemicalsslide 24

REGIONAL MARKETS



Catalysis & Energy

18

• 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.

KEY FIGURES 2011

Sales (CHF m) 491

EBITDA before excep-tional items (CHF m)

107

Employees 2 6591 Middle East and Africaa

REGIONAL MARKETS

Europe24%

MEA118%

NorthAmerica23%

LatinAmerica3%

Asia32%


Emulsions, Detergents & Intermediates

19

• 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.

KEY FIGURES 2011


REGIONAL MARKETS

See Performance Chemicalsside 24


Functional Materials

20

• 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.

1 Middle East and Africaa

KEY FIGURES 2011

Sales (CHF m) 456


59

Employees 2 829

REGIONAL MARKETS

Europe45%

MEA113%

NorthAmer-ica

11%

LatinAmer-ica9%

Asia22%


Industrial & Consumer Specialties

21

• 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.


KEY FIGURES 2011

Sales (CHF m) 1 473


251

Employees 1 801

REGIONAL MARKETS

Europe52%

MEA13%

NorthAmer-ica

13%

LatinAmer-ica

19%

Asia13%


Leather Services

22

• 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.


KEY FIGURES 2011

Sales (CHF m) 265


26

Employees 595

REGIONAL MARKETS

Europe30%

MEA112%

NorthAmer-ica1%LatinAmerica

19%

Asia38%


Masterbatches

23

• 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.


KEY FIGURES 2011

Sales (CHF m) 1 124


129

Employees 3 091

REGIONAL MARKETS

Europe43%

MEA110%

NorthAmerica21%

LatinAmer-ica9%

Asia17%


Oil & Mining Services

24

• 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.


KEY FIGURES 2011

Sales (CHF m) 620


72

Employees 1 000

REGIONAL MARKETS

Europe31%

MEA19%

NorthAmerica15%

LatinAmer-ica

33%

Asia12%


Paper Specialties

25

• Paper Specialties is one of the largest manufacturerof products for the optical brightness, color, coating and thickness of paper.

• It helps improve the optical and functional propertiesof all types of paper and board with its focusedproduct offering.

KEY FIGURES 2011


REGIONAL MARKETS



Pigments

26

• 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.


KEY FIGURES 2011

Sales (CHF m) 973


210

Employees 1 928

REGIONAL MARKETS

Europe38%

MEA15%

NorthAmer-ica

12%

LatinAmer-ica

12%

Asia33%


Textile Chemicals

27

• 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.


KEY FIGURES 2011

Sales (CHF m) 675


34

Employees 2 096

REGIONAL MARKETS

Europe25%

MEA114%

NorthAmer-ica6%

LatinAmerica20%

Asia35%


Reporting segmentPerformance Chemicals

28

KEY FIGURES 2011

Sales (CHF m) 1 293


177

Employees 2 141

REGIONAL MARKETS


• Performance Chemicals includes the Business Units: Additives; Emulsions, Detergents & Intermediates; Paper Specialties.

Europe36%

MEA110%

NorthAmer-ica

13%

LatinAmer-ica

13%

Asia28%

Clariant Excellence

Clariant Excellence drives cultural change

30

KEY FACTS

Financial Benefits since 2009 (CHF m)

160More than

1900Projects launched

More than

3000employees trained as Belts/project managers

Clariant Excellence (CLNX) is the company-wide long-term initiative targeting a culture of continuous improvement• LeanSigma as key core methodology

to execute improvement projects• Goal is to sustainably position Clariant

at the top levels of performance


Benefits already realized through Clariant Excellence

2012

2011

2010

2009

CHF m

> 100

25 50 75 100


COMMERCIAL EXCELLENCE

Empowering sales and marketing to offer the best customer service and value.

INNOVATION EXCELLENCE

Enabling new ideas and solutions for profitable growth.

OPERATIONAL EXCELLENCE

Striving for optimum efficiency across all of our operating processes.

PEOPLE EXCELLENCE

Enabling our people to achieve a culture of continuous improvement.

Clariant Excellence Key Elements

31

Innovation


Innovation is the basis for our business success

33

R&D activities focus onKEY FACTS

People in R&D(end of 2011)

1100R&D costs 2011 (CHFm)

176(2.4% of Group sales)

Over

9500patents

More than

140 scientificcollaborations

12

Global R&D Centers

• Strong Platforms in Chemistry, Biotechnology, Catalysis and Process Technology

• Translation of megatrends in sustainable solutions, e.g. renewable energy, renewable raw materials


Global innovation network

34

1 R&D Center Biotechnology

5 R&D Centers Chemistry

3 R&D Centers Catalysis

65 Technical Centers (Application Development)

BUSINESS UNIT FUNCTIONS

CENTRAL FUNCTIONS

3 R&D Centers Process Technologies

MARKETS AND

CUSTOMERS

Clariant’s Innovation Chain links ‘technology push’ with ‘market pull’

35

• Chemistry

• Biotechnology

• Catalysis

• Process Technology

R&D PLATFORMS


BUSINESS UNITS

• Application Development

• Technical Service

• Production

• Marketing

Innovation pipeline triggers profitable growth: Clariant’s idea to market process

36

Scout Scope Execute Commercialize

SALES POTENTIAL OF INNOVATION PIPELINE (INCLUDING PRODUCT IMPROVEMENT)CHF m/year

2012

2013

2014

2015

2016

0 500 1000


• Development• Pilot• Launch

• Evaluation• Deep dive• Proof of Concept

• Monitor• Close

• Ideation• Scouting

MORE THAN 260 INNOVATION PROJECTS ACROSS ALL PHASES


Clariant Innovation Center – the Global Hub of R&D in Frankfurt, Germany

37

• Central technology hub

• Coordination of global R&D activities

• Investment: CHF 125 million

• Accommodates 500 people

• Completion scheduled for 2013


Innovation HighlightsExolit® – Solving Burning Problems

38

Exolit®

Clariant is already a global leader innon-halogenated flame retardants thanksto 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.


Innovation HighlightsSynergen® – Green Crop Protection

39

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.


Innovation HighlightsBiotech Innovations in Cosmetics

40

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.


Innovation HighlightsLife Power® – Superior Battery Materials

41

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.

Innovation HighlightsEasyWhite 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.

42 Corporate Presentation, August 2012

Innovation HighlightsHydrocerol® – 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.


Innovation HighlightsPigments 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.


Innovation HighlightsPelletizing 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.


Innovation HighlightsSoil 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.



Innovation Highlightssunliquid® – Bioethanol from cellulose

47

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.

Sustainability


SUSTAINABILITY POLICY

Commitment to ethical and sustainable operation and development.

SUSTAINABILITY REPORT

Rated A+ by the Global Reporting Initiative.

SUSTAINABILITY COUNCIL

Goals and standards for sustainable development chaired by the CEO.

Sustainability@Clariantgoes beyond legal requirements

49


Sustainability is Anchored in Clariant’s Strategy

50

ECONOMY

SOCIETY

KEY FACTS

50%CO2 reduction since 2005

13%Energy consumption reduction since 2007

Globally certified quality, environmental and safety management

~70%less occupational accidents since 2007

Life-cycle thinking regarding our business activities, products and services

ENVIRONMENT


Environmental Targets 2020

51

Executive Committee


A highly experienced Executive Committee

53

Christian Kohlpaintner

since 1 October 2009

Additives, Catalysis & Energy, Functional Materials, Masterbatches, Pigments, Group Technology Services, Commercial Excellence, Innovation Excellence.

Patrick Jany, CFO

since 1 January 2006

Finance, Accounting, Treasury, Tax, Insurances, Information Technologies, Investor Relations, Integration Süd-Chemie.

Hariolf Kottmann, CEO

since 1 October 2008

Clariant Excellence, Group Legal & Compliance, Group HR, Talent Management Review, Group Communications, Corporate Development, Corporate Sustainability & Regulatory Affairs, People Excellence.

Mathias Lütgendorf

since 1 April 2009

Emulsions, Detergents & Intermediates, Industrial & Consumer Specialties, Leather Services, Oil & Mining Services, Paper Specialties, Textile Chemicals, Purchasing, Logistics, Operational Excellence.


Disclaimer

54

This presentation contains certain statements that are neither reported financial results nor other historical information. This presentation also includes forward-looking statements.

Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Clariant’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors such as: the timing and strength of new product offerings; pricing strategies of competitors; the Company's ability to continue to receive adequate products

from its vendors on acceptable terms, or at all, and to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Clariant does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.

Corporate presentation english

Technology

Transcript of Corporate presentation english