Clariant Ag · SIX:CLN
Clariant — Q3 2024 Earnings Presentation
31 slides from Clariant's earnings presentation, Oct 29, 2024
Slide 1: Third Quarter / Nine Months Figures 2024
Third Quarter / Nine Months Figures 2024 Analyst presentation 29.10.2024
Slide 2: Disclaimer
2 Third Quarter / Nine Months Figures 2024 29.10.2024 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 acceptable terms, or at all, and informat
Slide 3: Group performance
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Slide 4: Q3 sales: volume growth in Adsorbents & Additives and Care Chemicals
4 Third Quarter / Nine Months Figures 2024 29.10.2024 Q3 sales:1 Volume growth in Adsorbents & Additives and Care Chemicals (incl. LMC acquisition) partly compensated for lower Catalysts volumes -1 % -3 % 1 031 1 019 -4 1 - 29 991 - 30 22 0% -3% 2% 0% -3% Stable pricing in all Care Chemicals + 1 % P
Slide 5: Geographic split Regional headlines
5 Third Quarter / Nine Months Figures 2024 29.10.2024 Geographic split Regional headlines Q3 sales CHF 991 m – Sales in the Americas were lower, organically down by 6 %, in CHF m, % in LC,1 % organic growth in LC1 driven by volumes as pricing was flat. Volume growth in Adsorbents & Additives and Car
Slide 6: Q3 EBITDA: Higher volumes could not offset lower Catalysts volumes
6 Third Quarter / Nine Months Figures 2024 29.10.2024 Q3 EBITDA: Higher volumes (A&A and CC) could not offset lower Catalyst volumes and cost measures (Corporate) - 13 % 159 1 - 21 15.4 % 10 - 10 139 Volume - 20 % vs. very Provisions for new 14.0 % Volume + 1 % organic strong comparable restructurin
Slide 7: Third Quarter 2024 Strategic Updates
7 Third Quarter / Nine Months Figures 2024 29.10.2024 Third Quarter 2024 Strategic Updates – Ben van Beurden nominated as Chairman of the Board ▪ Proposed for election at the AGM on 1 April 2025 ▪ Experienced leader of global organizations (i.e. CEO of Shell), extensive background in the energy and
Slide 8: Business performance
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Slide 9: Third Quarter 2024 Care Chemicals Highlights
9 Third Quarter / Nine Months Figures 2024 29.10.2024 Third Quarter 2024 Highlights Care Chemicals in CHF m Q3 2024 Q3 2023 % CHF % LC1 – Volume: slight organic increase further supported by Lucas Sales 536 525 2 5 Meyer Cosmetics (scope) EBITDA 92 91 1 EBITDA margin 17.2 % 17.3 % – Price: flat comp
Slide 10: Third Quarter 2024 Catalysts Highlights
10 Third Quarter / Nine Months Figures 2024 29.10.2024 Third Quarter 2024 Highlights Catalysts in CHF m Q3 2024 Q3 2023 % CHF % LC1 – Volume: decreased in all segments except Ethylene versus a Sales 203 260 - 22 - 20 very high comparison base in 2023. Delays in the regular refill EBITDA 37 58 - 36 c
Slide 11: sunliquid impacts further reduced
11 Third Quarter / Nine Months Figures 2024 29.10.2024 sunliquid® impacts further reduced Execution of closure and downsizing mostly completed ▪ Significant reduction of operational impact ▪ No exceptionals in Q3 2024 ▪ Successful settlement of contractual relationships (reversal of impairments and
Slide 12: Third Quarter 2024 Adsorbents & Additives Highlights
12 Third Quarter / Nine Months Figures 2024 29.10.2024 Third Quarter 2024 Highlights Adsorbents & Additives in CHF m Q3 2024 Q3 2023 % CHF % LC1 – Volume: increased due to growth in Additives with Polymer Sales 252 246 2 7 Solutions (> 25 %) and a slight increase in Coatings & EBITDA 40 30 33 Adhesi
Slide 13: Total cost savings of CHF 175 m by 2025
13 Third Quarter / Nine Months Figures 2024 29.10.2024 Total cost savings of CHF 175 m by 2025 – Q3 2024 delivered CHF 7 m savings 175 5 10 Increased savings 20 Increased cost target by CHF 5 m savings target by to align cost base CHF 10 m 50 41 Additional savings of 24 30 CHF 50 m expected by 2025
Slide 14: Outlook
Outlook
Slide 15: Outlook 2024: EBITDA margin confirmed, sales outlook slightly reduced
15 Third Quarter / Nine Months Figures 2024 29.10.2024 Outlook 2024: EBITDA margin confirmed, sales outlook slightly reduced 2024 Internal Factors Top line – Growth in Care Chemicals and Adsorbents & Additives to compensate for lower Catalysts sales (expected Q4 improvement) – Focus on pricing in re
Slide 16: Medium-term outlook: continued progress in 2025 toward unchanged targets
16 Third Quarter / Nine Months Figures 2024 29.10.2024 Medium-term outlook: continued progress in 2025 toward unchanged targets – return to growth and continued margin improvement 2025 Unchanged medium-term targets Substantial improvement toward unchanged targets Commitment to deliver financial targ
Slide 17: Investor Day – 4 November 2024
17 Third Quarter / Nine Months Figures 2024 29.10.2024 Investor Day – 4 November 2024 – Clariant will hold an Investor Day on Monday, 4 November 2024 – The in-person event will take place at the Andaz London Liverpool Street Hotel, starting at 11.00 am and finishing at 5.00 pm local time – Agenda an
Slide 18: Appendix
Appendix
Slide 19: Modeling Guidance 2024 vs. 2023
19 Third Quarter / Nine Months Figures 2024 29.10.2024 Modeling Guidance 2024 vs. 2023 Acquisition Divestment Business Closing Sales Impact EBITDA Impact Comments Unit 2024 vs. FY 2023 2024 vs. FY 2023 Lucas Meyer ~ CHF 35 m ~ 9 months Care Chemicals 2 April 2024 ~ CHF 75 m (before CHF 10 million IF
Slide 20: Third Quarter 2024 – Overview
20 Third Quarter / Nine Months Figures 2024 29.10.2024 Third Quarter 2024 – Overview Group Care Chemicals in CHF m Q3 2024 Q3 2023 % CHF % LC1 in CHF m Q3 2024 Q3 2023 % CHF % LC1 Sales 991 1 031 -4 -1 Sales 536 525 2 5 EBITDA 139 159 - 13 EBITDA 92 91 1 EBITDA margin 14.0 % 15.4 % EBITDA margin 17.
Slide 21: Nine Months 2024 – Overview
21 Third Quarter / Nine Months Figures 2024 29.10.2024 Nine Months 2024 – Overview Group Care Chemicals in CHF m 9M 2024 9M 2023 % CHF % LC1 in CHF m 9M 2024 9M 2023 % CHF % LC1 Sales 3 061 3 315 -8 -5 Sales 1 682 1 771 -5 -3 EBITDA 478 501 -5 EBITDA 313 352 - 11 EBITDA margin 15.6 % 15.1 % EBITDA m
Slide 22: Geographic split Regional headline
22 Third Quarter / Nine Months Figures 2024 29.10.2024 Geographic split Regional headline 9M sales CHF 3 061 m – Sales in the Americas were lower due to scope (- 2 %), in CHF m, % in local currency with volume growth in Care Chemicals and Additives & Adsorbents more than offset by lower Catalysts vo
Slide 23: Cost dynamics – mixed impacts
23 Third Quarter / Nine Months Figures 2024 29.10.2024 Cost dynamics – mixed impacts Pricing and volumes impacted by year on year and sequentially macro environment and comparable − Raw materials decreased year on year (sequential flat) − Economic environment remained challenging in Q3 2024 − Energy
Slide 24: …with accelerating demand for sustainable products
24 Third Quarter / Nine Months Figures 2024 29.10.2024 Exposure to attractive consumer markets of > 40 %... …with accelerating demand for sustainable products Sales by end market (Q3 LTM 2024)1 Catalysts 22 % 21 % Chemical Process 44 % Home & Personal Care ~ 20 % Consumer Other Industrial < 5 % Mini
Slide 25: ESG – Clariant's Sustainability Transformation Commitment
25 Third Quarter / Nine Months Figures 2024 29.10.2024 ESG – Clariant’s Sustainability Transformation Commitment Sustainability priorities Fight climate change Increase circularity Investment in operations and portfolio Reducing our own carbon Products and solutions that enable footprint and creatin
Slide 26: Further improvement of non-financial KPIs in Q3 2024
26 Third Quarter / Nine Months Figures 2024 29.10.2024 Further improvement of non-financial KPIs in Q3 2024 (LTM1) – Fully on track to deliver 2030 greenhouse gas (GHG) target Reducing carbon footprint / carbon footprint of raw materials 40 % reduction in Scope 1 & 2 emissions – GHG Emissions - 13 %
Slide 27: Clariant is well recognized as an industry leader by ESG ratings
27 Third Quarter / Nine Months Figures 2024 29.10.2024 Clariant is well recognized as an industry leader by important ESG ratings and rankings Status as of August 2024 Index / Ranking / Clariant Score / Percentile First Year of Status / Comments Rating Rank or Range Inclusion 32% 12% 14% 17% 7% 8% 1
Slide 28: Calendar of Upcoming Corporate Events
28 Third Quarter / Nine Months Figures 2024 29.10.2024 Calendar of Upcoming Corporate Events 4 November 2024 1 April 2025 31 July 2025 Investor Day Annual General Second Quarter / Meeting Half Year 2025 Reporting 29 October 2024 28 February 2025 29 April 2025 30 October 2025 Third Quarter / Fourth Q
Slide 29: The Executive Leadership Team
29 Third Quarter / Nine Months Figures 2024 29.10.2024 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 Judith Bischof Richard Haldimann Chris Hans
Slide 30: IR Contacts
30 Third Quarter / Nine Months Figures 2024 29.10.2024 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-relations@clariant.com
Slide 31: Thank you
Thank you