Clariant Ag · SIX:CLN
Clariant — Nomura Global Chemical Industry Leaders Conference 2013
48 slides from Clariant's conference presentation, Mar 22, 2013
Slide 1: Global Chemical Industry Leaders Conference
NOMURA Global Chemical Industry Leaders Conference Venice, 22 March 2013 Public Patrick Jany, CFO
Slide 2: Successful Year 2012
2 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Successful Year 2012 – Most businesses performed well in a difficult environment – Repositioning of Clariant: strong progress due to five Business Units reclassified as discontinued and the divestment of three businesses ahead of sch
Slide 3: Highlights
Highlights Public Patrick Jany, CFO
Slide 4: Robust performance of most core Business Units
4 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Robust performance of most core Business Units all figures continuing operations − Double-digit sales growth in all regions ex-Europe, driven by acquisition of Süd-Chemie; organic growth flat with 6038 2% higher sales prices compensa
Slide 5: A milestone year 2012 – repositioning of Clariant takes shape
5 Nomura Global Chemical Industry Leaders Conference 22 March 2013 A milestone year 2012 – repositioning of Clariant takes shape Repositioning of Portfolio achieved − Focus on growing seven core Business Units, reported as continuing operations − Five businesses reclassified as discontinued operatio
Slide 6: Growth through innovation in the continuing businesses
6 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Growth through innovation in the continuing businesses Synergen® – new crop protection products based on renewable raw materials, enabling increase in crop yields without damaging the plants with artificial substances. VitipureTM , V
Slide 7: Fourth Quarter Results
Fourth Quarter Results Public Patrick Jany, CFO
Slide 8: Agreement to sell Textile Chemicals, Paper Specialties, Emulsions signed
8 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Agreement to sell Textile Chemicals, Paper Specialties, Emulsions signed − Agreement signed with U.S. based investment firm SK Capital in late December 2012 − Total consideration of approx. CHF 500 mn: CHF 460 mn in cash, plus pensio
Slide 9: Figures from continuing and discontinued operations for the fourth quarter
9 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Figures from continuing and discontinued operations for the fourth quarter 2012 2011 Fourth quarter Continuing Discontinued Continuing Discontinued (all figures in CHF) Group total Group total operations1 operations2 operations1 oper
Slide 10: 49% of sales generated in emerging markets
10 Nomura Global Chemical Industry Leaders Conference 22 March 2013 49% of sales generated in emerging markets all figures continuing operations Sales mix Q4 Sales growth in local currencies Volume China 3% 110 / +2% Germany North America 208 / –6% 236 / +2% Asia / Pacific Acq./Div. 349 / +1% 0% Pri
Slide 11: Higher EBITDA on increased gross margin
11 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Higher EBITDA on increased gross margin all figures continuing operations Improved gross margin due to a favorable volume/mix effect, lower idle facility cost and stringent margin management: 29.3% Gross margin − sales prices –1% /
Slide 12: Operating cash flow improved
12 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Operating cash flow improved all figures continuing operations − Higher cash flow from operations* following the usual seasonal pattern and strict net working capital management – Operating 284 NWC at 19% of sales cash flow mn CHF 2
Slide 13: Business Unit Performance
Business Unit Performance Public Patrick Jany, CFO
Slide 14: Sales growth and improved EBITDA margin in the fourth quarter
14 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Sales growth and improved EBITDA* margin in the fourth quarter Fourth quarter 2012 Sales Change EBITDA* margin EBIT* margin Business Unit / Reporting Segment CHF mn % CHF % LC Q4/12 Q4/11 Q4/12 Q4/11 Industrial & Consumer Specialtie
Slide 15: Oil & Mining Services and Catalysts driving growth
15 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Oil & Mining Services and Catalysts driving growth LC sales growth EBITDA* margin Industrial & Consumer Specialties Strong growth in Crop Protection in all regions; some seasonal tailwind from de-icing business in Europe. Seasonal s
Slide 16: Stabilization in Masterbatches and Pigments – temporary weakness in Additives
16 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Stabilization in Masterbatches and Pigments – temporary weakness in Additives LC sales growth EBITDA* margin Additives** Lower demand for flame retardants and year-end destocking in the electronics industry. Mid-term trend of replac
Slide 17: Outlook – focus on performance, growth & innovation
Outlook – focus on performance, growth & innovation Public Patrick Jany, CFO
Slide 18: Profitable growth strategy – agenda 2013
18 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Profitable growth strategy – agenda 2013 – Focus on opportunities in each Business Unit Increase (products, customers, regions) profitability – Further differentiation of value propositions – Improve innovation success rate by imple
Slide 19: Clariant 2013 – a focused portfolio with different growth drivers
19 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Clariant 2013 – a focused portfolio with different growth drivers Natural Resources Plastics & Coatings Catalysis & Energy Care Chemicals − Oil Services − Additives − Catalysts − Personal Care − Mining Solutions − Pigments − Energy
Slide 20: Outlook – further progress towards 2015 targets
20 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Outlook – further progress towards 2015 targets Macroeconomic view − Persisting soft macroeconomic environment characterized by high volatility − Solid growth in the emerging markets, no significant growth impulses from the European
Slide 21: Back-up slides
Back-up slides Public Patrick Jany, CFO
Slide 22: Repositioning of portfolio reduces size but improves profitability
22 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Repositioning of portfolio reduces size but improves profitability of Clariant – discontinued operations Strategic options phase 1 – Sales1 7% 15% Disposal of three businesses in Dec. 2012 Core CLN Phase 1 Phase 2 78% TEXTILE CHEMIC
Slide 23: Figures from continuing and discontinued operations for Q4 2012 and Q4 2011
23 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Figures from continuing and discontinued operations for Q4 2012 and Q4 2011 2012 2011 Fourth quarter Continuing Discontinued Continuing Discontinued (all figures in CHF) Group total Group total operations1 operations2 operations1 op
Slide 24: Figures from continuing and discontinued operations for FY 2012 and FY 2011
24 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Figures from continuing and discontinued operations for FY 2012 and FY 2011 2012 2011 Full Year Continuing Discontinued Continuing Discontinued (all figures in CHF) Group total Group total operations1 operations2 operations1 operati
Slide 25: Clariant’s products and services are delivered through 7 Business Units
25 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Clariant’s products and services are delivered through 7 Business Units Additives Catalysis & Energy Functional Materials Industrial & Consumer The Business Unit This business is one of the This business unit is among Specialties Ad
Slide 26: Clariant’s products and services are delivered through 7 Business Units
26 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Clariant’s products and services are delivered through 7 Business Units Masterbatches Oil and Mining Pigments Clariant Masterbatches is a Services The Pigments Business leading manufacturer of The Oil and Mining Unit is a leading gl
Slide 27: Four Business Units reported as discontinued operations as of 1 January 2013
27 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Four Business Units reported as discontinued operations as of 1 January 2013 Emulsions Detergents Leather Services Paper Specialties Textile Chemicals & Intermediates A leading supplier of A leading provider of optical A leading pro
Slide 28: Peer group ROIC 2011 – Measuring performance based on relative ROIC
28 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Peer group ROIC 2011 – Measuring performance based on relative ROIC* 2011 average 12.4% Croda 29.2 Albemarle 23.4 Wacker 17.9 Arkema 16.9 BASF 16.2 Evonik 15.2 Lanxess 14.9 Celanese 14.6 CLARIANT 13.1 Rockwood 12.4 Altana 10.9 DSM 9
Slide 29: Strong sales growth in emerging markets
29 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Strong sales growth in emerging markets all figures continuing operations Sales mix FY 2012 Sales growth in local currencies China Acq./Div. 435 / +19% 8% North Asia / Germany America Pacific 835 / -6% 956 / +13% 1414 / Price +15% 2
Slide 30: Key financials – full year
30 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Key financials – full year 2012 2011 Full year CHF mn % of sales CHF mn % of sales Sales 6 038 100% 5 571 100% Local currency growth (LC) 8% - Organic growth rate* 0% - Acquisitions/Divestments 8% Currencies 0% Gross profit 1 745 28
Slide 31: Cash flow – full year
31 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Cash flow – full year 2012 2011 Full year CHF mn CHF mn Net income 238 251 Depreciation, amortization and impairment 328 279 Other 129 152 Payments for restructuring -150 -155 Operating cash flow before working capital changes 545 5
Slide 32: Financial result – full year
32 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Financial result – full year 2012 2011 Full year CHF mn CHF mn Interest income 17 14 Other financial income 5 5 Total financial income 22 19 Interest expenses –155 –122 Other financial expenses –20 –22 Total financial expenses –175
Slide 33: Sales and EBITDA margins by business unit – full year
33 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Sales and EBITDA margins by business unit – full year Full year Sales EBITDA* EBITDA margin* Business Unit / Segment: CHF mn % LC % of Group % 2012 % 2011 Industrial & Consumer Specialties (ICS) 1 474 +1 26 16.8 17.0 Masterbatches (
Slide 34: ICS, Masterbatches, Pigments, OMS – full year
34 Nomura Global Chemical Industry Leaders Conference 22 March 2013 ICS, Masterbatches, Pigments, OMS – full year Industrial & Consumer Specialties Pigments Sales in CHF mn EBITDA bef. exc. in CHF mn Sales in CHF mn EBITDA bef. exc. in CHF mn Change Change Change Change 2012 2011 2012 2011 2012 2011
Slide 35: Functional Materials, Catalysis & Energy, and Additives – full year
35 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Functional Materials, Catalysis & Energy, and Additives – full year Functional Materials* Additives** Sales in CHF mn EBITDA bef. exc. in CHF mn Sales in CHF mn EBITDA bef. exc. in CHF mn Change Change Change Change 2012 2011 2012 2
Slide 36: Key financials – fourth quarter
36 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Key financials – fourth quarter 2012 2011 Fourth quarter CHF mn % of sales CHF mn % of sales Sales 1 509 100% 1 491 100% Local currency growth (LC) 2% - Organic growth rate* 2% - Acquisitions/Divestments 0% Currencies -1% Gross prof
Slide 37: Cash flow – fourth quarter
37 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Cash flow – fourth quarter 2012 2011 Fourth quarter CHF mn CHF mn Net income 99 10 Depreciation, amortization and impairment 87 93 Other -17 3 Payments for restructuring -28 -42 Operating cash flow before working capital changes 141
Slide 38: Financial result – fourth quarter
38 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Financial result – fourth quarter 2012 2011 Fourth quarter CHF mn CHF mn Interest income 2 5 Other financial income 1 1 Total financial income 3 6 Interest expenses –42 –33 Other financial expenses –5 –7 Total financial expenses –47
Slide 39: Sales and EBITDA margins by business unit – fourth quarter
39 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Sales and EBITDA margins by business unit – fourth quarter Fourth quarter Sales EBITDA* EBITDA margin* Business Unit / Segment: CHF mn % LC % of Group % 2012 % 2011 Industrial & Consumer Specialties (ICS) 382 1 29 19.1 15.9 Masterba
Slide 40: ICS, Masterbatches, Pigments, OMS – fourth quarter
40 Nomura Global Chemical Industry Leaders Conference 22 March 2013 ICS, Masterbatches, Pigments, OMS – fourth quarter Industrial & Consumer Specialties Pigments Sales in CHF mn EBITDA bef. exc. in CHF mn Sales in CHF mn EBITDA bef. exc. in CHF mn Q4 Change Q4 Q4 Change Q4 Q4 Change Q4 Q4 Change Q4
Slide 41: Functional Materials, Catalysis & Energy, and Additives – fourth quarter
41 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Functional Materials, Catalysis & Energy, and Additives – fourth quarter Functional Materials* Additives** Sales in CHF mn EBITDA bef. exc. in CHF mn Sales in CHF mn EBITDA bef. exc. in CHF mn Q4 Change Q4 Q4 Change Q4 Q4 Change Q4
Slide 42: Debt maturity profile as of 31 December 2012
42 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Debt maturity profile as of 31 December 2012 Liquidity Headroom Maturities of Financial Debt in CHF million 1800 20 Derivatives 1600 Uncommitted & other loans / NWC facilities 3rd Party Loans 1400 Convertible Bond** Certificate of I
Slide 43: Sales and cost structure
43 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Sales and cost structure* Global sales distribution in % Global cost distribution in % Emerging Emerging Markets Markets 20% 17% JPY EUR 4% 40% EUR JPY 5% CHF 46% CHF 5% 0% USD USD 35% 28% * these distributions represent an approxim
Slide 44: Top 20 products in percentage of total raw material costs
44 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Top 20 products in percentage of total raw material costs* Products 1 Ethylene 2 Ethylene oxide 3 Propyleneglycol 4 Polyethylene 5 Titanium dioxide 6 Propylene oxide 7 Tallow fatty acid 8 Cetyl/dodecyl alcohol 24 % 9 29H,31H-Phthalo
Slide 45: Raw material classification – dependence on oil price decreased
45 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Raw material classification – dependence on oil price decreased Product groups Base Chemicals Natural & Renewable Specialty Chemicals Chemicals 15% 10% 30 % 44% Petro Chemicals
Slide 46: Calendar of upcoming corporate events
46 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Calendar of upcoming corporate events 4 March 2013 Publication of Annual Report 2012 26 March 2013 Annual General Meeting, Basel First Quarter 2013 Results 30 April 2013 Conference Call 28 June 2013 Capital Markets Day, London Half
Slide 47: IR contacts
47 Nomura Global Chemical Industry Leaders Conference 22 March 2013 IR contacts Dr. Ulrich Steiner Head of Group Communications & Investor Relations Phone +41 (0) 61 469 67 45 Mobile +41 (0) 79 297 27 07 E-mail ulrich.steiner@clariant.com Dr. Siegfried Schwirzer Deputy Head Investor Relations Phone
Slide 48: Disclaimer
48 Nomura Global Chemical Industry Leaders Conference 22 March 2013 Disclaimer 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 stateme
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