Clariant Ag · SIX:CLN

Clariant — Deutsche Bank Swiss Equities Conference 2009

14 slides from Clariant's conference presentation, May 12, 2009

  1. Slide 1: Deutsche Bank – Swiss Equities Conference

    Public DB Swiss Equities Conference 12.05.2009 Deutsche Bank – Swiss Equities Conference Zurich, 12 May 2009 Patrick Jany, CFO

  2. Slide 2: Disclaimer

    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 statements are subject to risks and uncertainties, actual future results ma

  3. Slide 3: First quarter 2009 – highlights

    First quarter 2009 – highlights „ Sales down 19% in local currencies and 24% in CHF on continuing weak demand „ Operating loss before exceptionals of CHF 13 million due to low capacity utilization and inventory devaluations „ Cash flow from operations up to CHF 156 million from CHF –6 million in Q1

  4. Slide 4: First quarter 2009 – financials

    First quarter 2009 – financials Q1/09 Q1/08 in CHF in LC Sales in CHF million 1 604 2 112 –24% –19% Gross Margin 23.6% 30.5% EBIT before exceptionals in CHF million –13 28.7% 29.2% 167 EBIT margin before exceptionals –0.8% 7.9% Net loss / income in CHF million –91 41 Operating cash flow in CHF milli

  5. Slide 5: Resilience in Latin America, weak sales in all other regions

    Resilience in Latin America, weak sales in all other regions Q1/09 Q1/08 Sales growth in local currencies –19% +3% „ Sales mix: Asia / Australia Total sales Q1/09: CHF 1 604 million – Volume –25% Africa 378 – Price +6% Europe – Acq./div. 0% 754 including -19% -24% – Currency –5% China 63 -37% „ Lati

  6. Slide 6: General trends in Clariant's businesses

    General trends in Clariant’s businesses „ Destocking continued in Q1/09 with differentiated patterns from business to business „ First signs of stabilization in demand in certain businesses and regions „ Too early to call the stabilization a recovery in demand „ Pressure on sales prices compensated

  7. Slide 7: Business update divisions TLP / PA

    Business update divisions TLP / PA Division Textile, Leather & Paper Chemicals Q1/09 sales: –20% in LC / –27% in CHF „ Worst business environment in T and L in decades „ Paper significantly affected by inventory devaluation „ First signs of a demand stabilization in T in parts of Asia Division Pigme

  8. Slide 8: Business update divisions MB / FUN

    Business update divisions MB / FUN Division Masterbatches Q1/09 sales: –19% in LC / –24% in CHF „ Abrupt halt of orders from European automotive industry „ Packaging more resilient than automotive, textile markets „ Break-even point lowered substantially Division Functional Chemicals Q1/09 sales: –6

  9. Slide 9: Restructuring measures implemented in the first quarter 2009

    Restructuring measures implemented in the first quarter 2009 Sustainable NWC reduction „ Production planning: from “automatic transmission” to “manual gear shift” CASH „ Weekly production planning by matching production and sales/incoming orders Procurement savings „ Weekly review of purchase orders

  10. Slide 10: Profitability measures taken in T&L

    Profitability measures taken in T&L „ Textile, Leather: above group average Business Unit Facts & Figures gross margin but very weak EBIT margin „ A leader in Leather, Paper Optical Brighteners & Dyes; top two Textile, number eight in Paper „ Textile, Leather, Paper have different „ Division sales C

  11. Slide 11: Our roadmap – three steps to build a sustainable platform

    Our roadmap – three steps to build a sustainable platform Timeline < 2009 > 2010 Restructuring Continuous Focus Restructuring Long-term growth improvement Actions Project Clariant Clariant excellence Growth & Opportunities „ Cash generation „ People excellence „ Innovation excellence „ Cost cutting

  12. Slide 12: Ample liquidity headroom available

    Ample liquidity headroom available > CHF 2 bn financial headroom „ Cash and cash equivalents as of end Q1/09, 438 available at headquarters and in the countries up from CHF 356 million at year-end 2008 „ Syndicated bank facility CHF 750 million, 750 maturing June 2010; undrawn; no intention to draw;

  13. Slide 13: Outlook – business conditions

    Outlook – business conditions „ First signs of a stabilization in demand in some businesses and regions „ No sustainable recovery in demand expected „ Raw material costs to stabilize around current levels DB Swiss Equities Conference (Copyright Clariant. All rights reserved.) 12.05.2009 Slide 13 / 1

  14. Slide 14: Summary and outlook

    Summary and outlook „ Cash generation and further cost reductions as top priorities to: – address the unsatisfactory performance relative to the peers – weather the global economic crisis – build a sustainable platform for continuous improvement and growth after 2010 „ Improved profitability in the

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