Clariant Ag · SIX:CLN
Clariant — Q3 2023 Earnings Presentation
42 slides from Clariant's earnings presentation, Oct 30, 2023
Slide 1: Clariant agrees to acquire Lucas Meyer Cosmetics; Q3 / 9M 2023 Figures
Clariant agrees to acquire Lucas Meyer Cosmetics Clariant Third Quarter / Nine Months Figures 2023 Analyst and investor presentation 30.10.2023
Slide 2: Disclaimer
2 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Disclaimer This presentation contains certain statements that are the Company’s ability to continue to receive adequate neither reported financial results nor other historical products from its vendors on acc
Slide 3: Clariant agrees to acquire Lucas Meyer Cosmetics
Clariant agrees to acquire Lucas Meyer Cosmetics
Slide 4: Lucas Meyer Cosmetics – proven success story in high value consumer applications
4 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Lucas Meyer Cosmetics (“LMC”) – proven success story in high value consumer applications Sizeable, pure-play cosmetic ingredients asset High quality 81 + ~ USD 100 m 2 900 + customers Countries served Sales H
Slide 5: Compelling rationale enhancing Clariant's specialty focus
5 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Compelling rationale enhancing Clariant’s specialty focus 1 Fully aligned with Clariant’s purpose-led growth strategy – will strengthen our position as a true specialty chemical company 2 Highly attractive bu
Slide 6: Attractive terms proposed, secured financing and rapid path to closing
6 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Attractive terms proposed, secured financing and rapid path to closing • Total consideration: USD 810 m (~ CHF 720 m1) on a cash-free, debt-free basis, payable in cash at closing Attractive terms • EV/EBITDA
Slide 7: Fully aligned with Clariant's purpose-led growth strategy
7 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 1 Fully aligned with Clariant’s purpose-led growth strategy Purpose-led strategy Value enhancing M&A Lucas Meyer Communicated criteria Cosmetics Customer Innovative • Attractive market position focus chemistr
Slide 8: Highly attractive business with clear competitive edge, accelerating sustainability and innovation agenda
8 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 2 Highly attractive business with clear competitive edge, 3 accelerating sustainability and innovation agenda Industry leading product portfolio Innovation flywheel • Broad portfolio of peptides, created thro
Slide 9: Increasing exposure to most attractive consumer end-markets
9 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 4 Increasing exposure to most attractive consumer end-markets Global cosmetic ingredients market size (in USD b) Market served by LMC Growth drivers and outlook Consumers are increasingly seeking natural and
Slide 10: Highly complementary and synergistic businesses
10 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 5 Highly complementary and synergistic businesses Clariant Care Chemicals (2022A Sales) 1 Other • Valuable addition to our own care ingredients portfolio consumer Better positioning in the 31 % • Establish m
Slide 11: Tangible value creation for Clariant shareholders proposed
11 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 6 Tangible value creation for Clariant shareholders proposed Clariant financial targets Lucas Meyer Cosmetics Sales growth 4-6% ✓ ~ 10 %1 EBITDA margin 19 - 21 % ✓ Highly attractive profitability Cash conver
Slide 12: Closing remarks
12 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Closing remarks 1 Fully aligned with Clariant’s purpose-led growth strategy 2 Highly attractive business with clear competitive edge 3 Accelerating sustainability and innovation agenda 4 Increasing exposure
Slide 13: Q3 / 9M 2023 Group performance
Q3 / 9M 2023 Group performance
Slide 14: Q3 sales: Catalyst growth, stabilization in Care Chemicals, challenges in Additives
14 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Q3 sales: Catalyst growth, stabilization in Care Chemicals, and continued challenges in Additives – FX and Scope impacting top-line - 13 % 1 312 - 72 -8% 34 - 67 1 139 -5% -3% -5% - 108 1 031 Main movers inc
Slide 15: Q3 EBITDA: Strong margin performance in Catalysts
15 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Q3 EBITDA: Strong margin performance in Catalysts – Care Chemicals and Additives impacted by FX and volume - 28 % - 14 % excl. FX impacts 220 16.8 % - 53 26 2 - 49 159 13 Pricing - 6 % Volume + 4 % 15.4 % FX
Slide 16: Sequential development: volumes compensated pricing; cost measures supported profitability
16 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Sequential development: slightly positive volumes compensated pricing; cost measures and operational improvement supported profitability Sales EBITDA before exceptional items in CHF m in CHF m / % of sales -
Slide 17: Business performance
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Slide 18: Third Quarter 2023 Care Chemicals Highlights
18 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Third Quarter 2023 Highlights Care Chemicals in CHF m Q3 2023 Q3 2022 % CHF % LC1 – Volume declined slightly year-on-year versus high Sales 525 725 - 28 - 18 comparison base due to weak demand; up 7 % sequen
Slide 19: Third Quarter 2023 Catalysts Highlights
19 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Third Quarter 2023 Highlights Catalysts in CHF m Q3 2023 Q3 2022 % CHF % LC1 – Volume growth in Propylene and Syngas & Fuels; Sales 260 262 -1 8 continued positive pricing; sequentially lower due to EBITDA 5
Slide 20: Third Quarter 2023 Adsorbents & Additives Highlights
20 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Third Quarter 2023 Highlights Adsorbents & Additives in CHF m Q3 2023 Q3 2022 % CHF % LC1 – Volume declined significantly and pricing was slightly Sales 246 325 - 24 - 19 negative, both primarily driven by A
Slide 21: On track to achieve total cost savings of CHF 170 m by 2025
21 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 On track to achieve total cost savings of CHF 170 m by 2025 – Q3 2023 delivered additional CHF 14 m savings 170 10 20 Increased cost savings target by CHF 10 m to 50 align cost base 41 Additional savings of
Slide 22: Outlook 2023
Outlook 2023
Slide 23: Outlook 2023: Confirming outlook despite challenging macroeconomic environment
23 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Outlook 2023: Confirming outlook despite challenging macroeconomic environment and currency headwinds 2023 Internal Factors Sales Range (CHF) EBITDA Range (CHF) – Softening pricing in recessionary/deflationa
Slide 24: Appendix
Appendix
Slide 25: Third Quarter 2023 – Overview
25 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Third Quarter 2023 – Overview Group Care Chemicals in CHF m Q3 2023 Q3 2022 % CHF % LC1 in CHF m Q3 2023 Q3 2022 % CHF % LC1 Sales 1 031 1 312 - 21 - 13 Sales 525 725 - 28 - 18 EBITDA 159 220 - 28 EBITDA 91
Slide 26: Nine Months 2023 – Overview
26 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Nine Months 2023 – Overview Group Care Chemicals in CHF m 9M 2023 9M 2022 % CHF % LC1 in CHF m 9M 2023 9M 2022 % CHF % LC1 Sales 3 315 3 875 - 14 -7 Sales 1 771 2 223 - 20 - 12 EBITDA 501 656 - 24 EBITDA 352
Slide 27: Third Quarter 2023 Strategic Priorities
27 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Third Quarter 2023 Strategic Priorities – sunliquid® ▪ Operational EBITDA impact of CHF – 11 m in Q3 2023 ▪ Sequentially similar level in Q4 2023 expected ▪ Continued efforts to address ramp-up challenges in
Slide 28: Geographic split – Q3 sales
28 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Geographic split Regional headline Q3 sales CHF 1 031 m – While absolute sales in the Americas declined, organic in CHF m, % year-on-year in local currency growth was 4 %, driven by Catalysts in the US. Decl
Slide 29: Geographic split – 9M sales
29 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Geographic split Regional headline 9M sales CHF 3 315 m – Sales in the Americas were lower due to divestments as in CHF m, % year-on-year in local currency well as force majeure declarations in the first qua
Slide 30: Cost dynamics – Flat pricing – Volumes impacted by macro environment
30 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Cost dynamics – lower year-on- Flat pricing – Volumes impacted year and sequentially by macro environment − Raw materials decreased year-on-year (sequential - 7 %) − Recessionary economic environment in Q3 −
Slide 31: Reporting aligned with new operating structure as of Q1 2023
31 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Reporting aligned with new operating structure as of Q1 2023 Key financial figures 2022 Business Unit Care Chemicals (CC) Sales CHF 2 937 m 19.5 % EBITDA margin Segments include Personal & Home Care, Crop So
Slide 32: 2022 – Reflecting Business Unit Structure as of 1 Jan 2023
32 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 2022 – Reflecting Business Unit Structure as of 1 Jan 2023 SALES and EBITDA reported & before exceptional items (b.e.i.) in CHF m Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 EBITDA EBITDA EBITDA EBITDA EBITDA EB
Slide 33: Exposure to attractive consumer markets with accelerating demand for sustainable products
33 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Exposure to attractive consumer markets… …with accelerating demand for sustainable products Sales by end market (Q3 2023 LTM1) Catalysts 22 % 22 % Chemical Home & Personal Care ~ 20 – 25 % Process 43 % Other
Slide 34: ESG – Clariant's Sustainability Transformation Commitment
34 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 ESG – Clariant’s Sustainability Transformation Commitment Sustainability priorities Investment in operations & portfolio Fighting Climate Change Increasing Circularity Sustainable operations Reducing our own
Slide 35: ESG update – Q3 2023 milestones / examples
35 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 ESG update – Q3 2023 milestones / examples Fighting Climate Change Increasing Circularity MegaMax® catalyst chosen for the world’s largest e-methanol plant, contributing to the ramp- up of green methanol as
Slide 36: Continued progress on the path to 2030 greenhouse gas target
36 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Continued progress on the path to 2030 greenhouse gas (GHG) target Reducing our carbon footprint… …and the carbon footprint of our raw materials 40 % reduction in Scope 1 & 2 emissions 14 % reduction in Scop
Slide 37: Clariant is well recognized as an industry leader by ESG ratings and rankings
37 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Clariant is well recognized as an industry leader by important ESG ratings and rankings Status as of October 2023 Index / Ranking Clariant score Status / Comments First year of / Rating / Percentile rank or
Slide 38: Debt Maturity Profile as of 30 September 2023
38 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Debt Maturity Profile as of 30 September 2023 Liquidity Financial debt maturities Cash and short-term deposits in CHF m in CHF m CHF bond Certificates of indebtedness 519 Short-term loans, lease and other li
Slide 39: Calendar of Upcoming Corporate Events
39 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 Calendar of Upcoming Corporate Events 2024 14 March 2024 9 April 2024 30 July 2024 Integrated Report AGM 2024 Second Quarter / Half Year 2024 Reporting 29 February 2024 30 April 2024 29 October 2024 Fourth Q
Slide 40: The Executive Leadership Team
40 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 The Executive Leadership Team Conrad Keijzer Chief Executive Officer Executive Leadership Team Executive Steering Committee Christian Vang Jens Cuntze Angela Cackovich Bill Collins Tatiana Berardinelli Judit
Slide 41: IR Contacts
41 Acquisition Lucas Meyer Cosmetics and Third Quarter / Nine Months Figures 2023 30.10.2023 IR Contacts ANDREAS SCHWARZWÄLDER Head of Investor Relations Phone: +41 61 469 63 73 Email: investor-relations@clariant.com THIJS BOUWENS Investor Relations Officer Phone: +41 61 469 63 73 Email: investor-re
Slide 42: Thank you
Thank you