Slide 1: Second Quarter / First Half Year Results 2024
Second Quarter / First Half Year Results 2024 Analyst presentation 30.07.2024
Slide 2: Disclaimer
2 Second Quarter / First Half Year Results 2024 30.07.2024 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 inf
Slide 3: Group performance
Greater chemistry CLARIANT
Slide 4: Highlights Q2 / H1 2024
4 Second Quarter / First Half Year Results 2024 30.07.2024 Highlights Q2 / H1 2024 Key Figures in CHF 1 056 m 166 m / 15.7 % Sales Q2 2024 EBITDA1 Q2 2024 2 070 m 339 m / 16.4 % Sales H1 2024 EBITDA1 H1 2024 112 m 72 m Operating cash flow H1 2024 Capex (PPE) HY 2024 252 m 42 % Free cash flow2 LTM3 F
Slide 5: Q2 sales: Volume recovery in Care Chemicals and Adsorbents & Additives
5 Second Quarter / First Half Year Results 2024 30.07.2024 Q2 sales1: Volume recovery in Care Chemicals and Adsorbents & Additives; Catalysts sequentially improved but high y-o-y comparable -3% 0% 1 084 - 28 1 056 12 1 056 -3 3 - 12 -3% 0% 0% 1% -1% Catalysts 0 % Care Chemicals + 7 % Impact of Quats
Slide 6: Geographic split Regional headline
6 Second Quarter / First Half Year Results 2024 30.07.2024 Geographic split Regional headline Q2 sales CHF 1 056 m – Sales in the Americas were flat, organically down 1 % in CHF m, % in LC1, % organic growth in LC1 (volume compensating for lower pricing); growth in Care Chemicals (strong volume, low
Slide 7: Q2 EBITDA: Operating leverage and lower sunliquid impact driving margin improvement
7 Second Quarter / First Half Year Results 2024 30.07.2024 Q2 EBITDA: Operating leverage (CC and A&A) and lower sunliquid® impact driving > 500 bps underlying margin improvement + 47 % excl. Quats gain - 5 % reported 175 166 16.1 % -3 27 15.7 % 62 2 Quats gain General inflation (incl. wages) and cor
Slide 8: Second Quarter 2024 Strategic Priorities
8 Second Quarter / First Half Year Results 2024 30.07.2024 Second Quarter 2024 Strategic Priorities – Post acquisition update on Lucas Meyer Cosmetics ▪ Closing on 2 April 2024 ▪ Integration and business combination well on track ▪ Operational performance in line despite challenging environment ▪ Pr
Slide 9: Addressing customer needs with sustainability-driven innovation: PTFE-free alternatives
9 Second Quarter / First Half Year Results 2024 30.07.2024 Addressing customer needs with sustainability-driven innovation: PTFE-free alternatives for metal coatings and ink applications Industry shift from PTFE amid Innovative portfolio for coatings PTFE-free processing aid for regulatory and susta
Slide 10: Business performance
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Slide 11: Second Quarter 2024 Care Chemicals Highlights
11 Second Quarter / First Half Year Results 2024 30.07.2024 Second Quarter 2024 Highlights Care Chemicals in CHF m Q2 2024 Q2 2023 % CHF % LC1 – Volume: organic increase of 7 %, driven by Industrial Sales 565 543 4 4 Applications, Personal & Home Care, and Oil Services, EBITDA 98 133 - 26 offsetting
Slide 12: Lucas Meyer Cosmetics – post acquisition update
12 Second Quarter / First Half Year Results 2024 30.07.2024 Lucas Meyer Cosmetics – post acquisition update Operational performance / integration ▪ Integration and business combination well on track ▪ In line with our business plan (CHF 23 m sales in Q2) in a more challenging environment ▪ Good perf
Slide 13: Second Quarter 2024 Catalysts Highlights
13 Second Quarter / First Half Year Results 2024 30.07.2024 Second Quarter 2024 Highlights Catalysts in CHF m Q2 2024 Q2 2023 % CHF % LC1 – Volume: decreased in all segments vs. a very high Sales 222 277 - 20 - 18 comparable base in 2023 EBITDA 44 42 5 EBITDA margin 19.8 % 15.2 % – Price: flat in al
Slide 14: sunliquid impacts reduced
14 Second Quarter / First Half Year Results 2024 30.07.2024 sunliquid® impacts reduced Good progress in execution of closure and downsizing ▪ Podari plant assets sold to International Chemical Investors Group (ICIG) for EUR 9.7 m in cash at closing; subject to regulatory approval ▪ Straubing assets
Slide 15: Second Quarter 2024 Adsorbents & Additives Highlights
15 Second Quarter / First Half Year Results 2024 30.07.2024 Second Quarter 2024 Highlights Adsorbents & Additives in CHF m Q2 2024 Q2 2023 % CHF % LC1 – Volume increased 5 %, driven by Additives with Polymer Sales 269 264 2 2 Solutions and Coatings & Adhesives (> 10 %), while EBITDA 45 18 150 price
Slide 16: Total cost savings of CHF 175 m by 2025
16 Second Quarter / First Half Year Results 2024 30.07.2024 Total cost savings of CHF 175 m by 2025 – Q2 2024 delivered CHF 9 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
Slide 17: First Half Year 2024 Highlights
17 Second Quarter / First Half Year Results 2024 30.07.2024 First Half Year 2024 Highlights Key Figures in CHF – Sales decreased by 7 % in LC1 (- 5 % organic in LC1), mainly attributable to very strong comparable in Catalysts – Selling, general, and administrative costs (SG&A) increased by 12 % due
Slide 18: Outlook
Outlook
Slide 19: Outlook 2024 – EBITDA margin expectation increased by 100 bps
19 Second Quarter / First Half Year Results 2024 30.07.2024 Outlook 2024 – EBITDA margin expectation increased by 100 bps due to strong H1 performance and lower sunliquid® impact – sales slightly lower 2024 Internal Factors Top line – Growth in Care Chemicals and Adsorbents & Additives to compensate
Slide 20: Medium-term outlook: continued progress in 2025 toward unchanged targets
20 Second Quarter / First Half Year Results 2024 30.07.2024 Medium-term outlook: continued progress in 2025 toward unchanged targets – return to growth and continued margin improvement 2025 2025 rationale / levers 17 – 18 % Substantial improvement toward unchanged targets ~ 16.0 % FY impact and Impr
Slide 21: Investor Day – 4 November 2024
21 Second Quarter / First Half Year Results 2024 30.07.2024 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 a.m. and finishing at 5.00 p.m. local time –
Slide 22: Appendix
Appendix
Slide 23: Modeling Guidance 2024 vs. 2023
23 Second Quarter / First Half Year Results 2024 30.07.2024 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 milli
Slide 24: Second Quarter 2024 – Overview
24 Second Quarter / First Half Year Results 2024 30.07.2024 Second Quarter 2024 – Overview Group Care Chemicals in CHF m Q2 2024 Q2 2023 % CHF % LC1 in CHF m Q2 2024 Q2 2023 % CHF % LC1 Sales 1 056 1 084 -3 -3 Sales 565 543 4 4 EBITDA 166 175 -5 EBITDA 98 133 - 26 EBITDA margin 15.7 % 16.1 % EBITDA
Slide 25: First Half Year 2024 – Overview
25 Second Quarter / First Half Year Results 2024 30.07.2024 First Half Year 2024 – Overview Group Care Chemicals in CHF m H1 2024 H1 2023 % CHF % LC1 in CHF m H1 2024 H1 2023 % CHF % LC1 Sales 2 070 2 284 -9 -7 Sales 1 146 1 246 -8 -6 EBITDA 339 342 -1 EBITDA 221 261 - 15 EBITDA margin 16.4 % 15.0 %
Slide 26: First Half Year 2024 – Consolidated Income Statement
26 Second Quarter / First Half Year Results 2024 30.07.2024 First Half Year 2024 – Highlights Consolidated Income Statement CHF m 2024 2023 – Gross profit increased to 30.7 %, driven by higher CHF m % CHF m % Sales 2 070 100.0 2 284 100.0 volumes and easing of raw material / energy cost Costs of goo
Slide 27: First Half Year 2024 – Cash Flow Statement
27 Second Quarter / First Half Year Results 2024 30.07.2024 First Half Year 2024 – Highlights Cash Flow Statement CHF m 2024 2023 Net result Adjustment for: 176 232 – Cash generated from operating activities increased to Depreciation and amortization 119 120 Impairment and reversal of impairment Rem
Slide 28: First Half Year 2024 – Balance Sheet
28 Second Quarter / First Half Year Results 2024 30.07.2024 First Half Year 2024 – Balance Sheet 30.06.2024 31.12.2023 30.06.2024 31.12.2023 ASSETS CHF m % CHF m % EQUITY AND LIABILITIES CHF m % CHF m % Noncurrent assets Equity Property, plant, and equipment 1 510 1 439 Share capital 584 724 Right-o
Slide 29: Geographic split Regional headline (H1)
29 Second Quarter / First Half Year Results 2024 30.07.2024 Geographic split Regional headline H1 sales CHF 2 070 m – Sales in the Americas were lower due to scope (- 5 %), in CHF m, % in local currency grew 1 % organically due to increased volumes in Care Chemicals in the US and Brazil in particula
Slide 30: EBITDA / EBIT Bridge First Half Year 2024
30 Second Quarter / First Half Year Results 2024 30.07.2024 EBITDA / EBIT Bridge First Half Year 2024 Group continuing operations (CHF m) Care Chemicals (CHF m) EBITDA Exceptional Exceptional EBITDA Exceptional Exceptional bei items EBITDA D&I1 EBITA Amortization EBIT items EBIT bei bei items EBITDA
Slide 31: ROIC vs. stable cost of capital
31 Second Quarter / First Half Year Results 2024 30.07.2024 ROIC vs. stable cost of capital Improvement drivers ROIC1 in % 3 10.6 % 9.9 % Cost of 9.5 %4 − Organic growth 4 9.1 % capital: ~9% 7.7 %2 7.4 % − Increasing operating margin 6.6 % − Reducing nonoperating cost (reported) 5.6 % (reported) 1.5
Slide 32: Cost dynamics – mixed impacts
32 Second Quarter / First Half Year Results 2024 30.07.2024 Cost dynamics – mixed impacts Pricing and volumes impacted by year on year, sequentially stable macro environment and comparable − Raw materials decreased year on year (sequential - 1 %) − Economic environment remained challenging in Q2 202
Slide 33: Exposure to attractive consumer markets with accelerating demand for sustainable products
33 Second Quarter / First Half Year Results 2024 30.07.2024 Exposure to attractive consumer markets of > 40 %... …with accelerating demand for sustainable products Sales by end market (Q2 LTM 2024)1 Catalysts 22 % 22 % Chemical Process 43 % Home & Personal Care ~ 20 % – 25 % Consumer Other Industria
Slide 34: ESG – Clariant's Sustainability Transformation Commitment
34 Second Quarter / First Half Year Results 2024 30.07.2024 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 cr
Slide 35: Further improvement of non-financial KPIs in Q2 2024
35 Second Quarter / First Half Year Results 2024 30.07.2024 Further improvement of non-financial KPIs in Q2 2024 (LTM1) – Fully on track to deliver 2030 greenhouse gas (GHG) target Reducing carbon footprint / carbon footprint of raw materials New operating model driving customer satisfaction and 40
Slide 36: Clariant recognized as industry leader by ESG ratings and rankings
36 Second Quarter / First Half Year Results 2024 30.07.2024 Clariant is well recognized as an industry leader by important ESG ratings and rankings Status as of July 2024 Index / Ranking Clariant score Status / Comments First year of / Rating / Percentile rank or range inclusion DJSI Europe Member,
Slide 37: Debt Maturity Profile as of 30 June 2024
37 Second Quarter / First Half Year Results 2024 30.07.2024 Debt Maturity Profile as of 30 June 2024 Liquidity Financial debt maturities Cash and short-term deposits in CHF m in CHF m CHF bond Certificates of indebtedness 470 Short-term loans, lease and other liabilities 442 Derivatives 384 357 160
Slide 38: Calendar of Upcoming Corporate Events
38 Second Quarter / First Half Year Results 2024 30.07.2024 Calendar of Upcoming Corporate Events 28 February 2025 4 November 2024 Fourth Quarter / Investor Day Full Year 2024 Reporting 29 October 2024 1 April 2025 Third Quarter / Annual General Nine Month 2024 Meeting Reporting
Slide 39: The Executive Leadership Team
39 Second Quarter / First Half Year Results 2024 30.07.2024 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
Slide 40: IR Contacts
40 Second Quarter / First Half Year Results 2024 30.07.2024 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 41: Thank you
Thank you