Clariant Ag · SIX:CLN
Clariant — Q2 2023 Earnings Presentation
38 slides from Clariant's earnings presentation, Jul 28, 2023
Slide 1: Second Quarter / First Half Year Results 2023
Second Quarter / First Half Year Results 2023 Analyst presentation 28.07.2023
Slide 2: Disclaimer
2 Second Quarter / First Half Year Results 2023 28.07.2023 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 acceptable terms, or at all, and inf
Slide 3: Group performance
Greater chemistry CLARIANT
Slide 4: Highlights Q2 / H1 2023
4 Second Quarter / First Half Year Results 2023 28.07.2023 Highlights Q2 / H1 2023 Key Figures 1 084 m 175 m Sales Q2 2023 EBITDA Q2 2023 78 m 75 m Operating cash flow H1 2023 Capex H1 2023 56 % 62 m FCF conversion (June 2023 LTM1) Preliminary gain on Quats divestment 1 Last Twelve Months (H2 2022 +
Slide 5: Q2 sales: strong Catalysts performance offset weak Care Chemicals and Additives
5 Second Quarter / First Half Year Results 2023 28.07.2023 Q2 sales: Strong Catalysts performance partially compensated for weak demand in Care Chemicals and Additives – FX impact from strong CHF -7% - 17 % 1 301 - 66 1 207 1 - 29 -5% +0% -2% - 123 1 084 - 10 % Catalysts + 25 % Positive for Catalyst
Slide 6: Geographic split Regional headline
6 Second Quarter / First Half Year Results 2023 28.07.2023 Geographic split Regional headline Q2 sales CHF 1 084 m – Sales in the Americas declined, around half of which was in CHF m, % in local currency due to the divestment of the North American Land Oil business. Volumes in Care Chemicals decline
Slide 7: Q2 profitability: Catalysts improvement and Quats gain
7 Second Quarter / First Half Year Results 2023 28.07.2023 Q2 profitability: Catalysts improvement and Quats gain compensate negative operating leverage (volume) and inventory devaluation - 19 % 216 39 16.6 % - 61 - 10 175 - 71 0 Scientific Design Volume + 25 % with gain CHF 22 m favorable mix Volum
Slide 8: Second Quarter 2023 Strategic Priorities
8 Second Quarter / First Half Year Results 2023 28.07.2023 Second Quarter 2023 Strategic Priorities – Podari sunliquid® ▪ Negative operational EBITDA impact of CHF 10 m in Q2 2023 ▪ Sequentially similar level in Q3 2023 expected ▪ Continued efforts to address ramp-up challenges in Podari ▪ Restructu
Slide 9: Continued progress on path to 2030 greenhouse gas (GHG) target
9 Second Quarter / First Half Year Results 2023 28.07.2023 Continued progress on 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 Scope 3 emissions - 13 % -4% - 11 % -8% 0.
Slide 10: ESG update – Q2 2023 milestones / examples
10 Second Quarter / First Half Year Results 2023 28.07.2023 ESG update – Q2 2023 milestones / examples Fighting climate change Increasing circularity AmoMax™-Casale catalyst was successfully installed at three ammonia synthesis plants, resulting in superior Sustainable bio-economy performance and lo
Slide 11: Business performance
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Slide 12: Second Quarter 2023 Care Chemicals Highlights
12 Second Quarter / First Half Year Results 2023 28.07.2023 Second Quarter 2023 Highlights Care Chemicals in CHF m Q2 2023 Q2 2022 % CHF % LC1 – Volume declined versus high comparison base due to Sales 543 740 - 27 - 17 weak demand, prolonged destocking, and scope EBITDA 133 142 -6 EBITDA margin 24.
Slide 13: Second Quarter 2023 Catalysts Highlights
13 Second Quarter / First Half Year Results 2023 28.07.2023 Second Quarter 2023 Highlights Catalysts in CHF m Q2 2023 Q2 2022 % CHF % LC1 – Volume growth in most segments, Propylene and Syngas Sales 277 232 19 30 & Fuels in particular – continued positive pricing EBITDA 42 13 223 EBITDA margin 15.2
Slide 14: Second Quarter 2023 Adsorbents & Additives Highlights
14 Second Quarter / First Half Year Results 2023 28.07.2023 Second Quarter 2023 Highlights Adsorbents & Additives in CHF m Q2 2023 Q2 2022 % CHF % LC1 – Volume declined significantly, driven by Additives; pricing Sales 264 329 - 20 - 12 slightly positive (value-based pricing) EBITDA 18 79 - 77 EBITD
Slide 15: On track to achieve total cost savings of CHF 170 m by 2025
15 Second Quarter / First Half Year Results 2023 28.07.2023 On track to achieve total cost savings of CHF 170 m by 2025 – Q2 2023 delivered additional CHF 14 m savings 170 10 20 Increased cost savings target by CHF 50 10 m to align cost base 41 Additional savings of 24 30 CHF 50 m expected by 22 202
Slide 16: First Half Year 2023 Highlights
16 Second Quarter / First Half Year Results 2023 28.07.2023 First Half Year 2023 Highlights Key Figures – Sales decreased by 3 % in LC1 (- 2 % organic in LC1) – Selling, general, and administrative costs (SG&A) declined by 20 % due to disposal proceeds and benefits from performance programs 2 284 m
Slide 17: Outlook 2023
Outlook 2023
Slide 18: Outlook 2023: Confirming adjusted outlook as of 7 July 2023
18 Second Quarter / First Half Year Results 2023 28.07.2023 Outlook 2023: Confirming adjusted outlook as of 7 July 2023 2023 Internal Factors Sales Range (CHF) EBITDA Range (CHF) – Softening pricing in recessionary/deflationary economic environment – Execute new operating model – deliver restructuri
Slide 19: Appendix
Appendix
Slide 20: Second Quarter 2023 – Overview
20 Second Quarter / First Half Year Results 2023 28.07.2023 Second Quarter 2023 – Overview Group Care Chemicals in CHF m Q2 2023 Q2 2022 % CHF % LC1 in CHF m Q2 2023 Q2 2022 % CHF % LC1 Sales 1 084 1 301 - 17 -7 Sales 543 740 - 27 - 17 EBITDA 175 216 - 19 EBITDA 133 142 -6 EBITDA margin 16.1 % 16.6
Slide 21: First Half Year 2023 – Overview
21 Second Quarter / First Half Year Results 2023 28.07.2023 First Half Year 2023 – Overview Group Care Chemicals in CHF m H1 2023 H1 2022 % CHF % LC1 in CHF m H1 2023 H1 2022 % CHF % LC1 Sales 2 284 2 563 - 11 -3 Sales 1 246 1 498 - 17 -9 EBITDA 342 436 - 22 EBITDA 261 291 - 10 EBITDA margin 15.0 %
Slide 22: First Half Year 2023 – Consolidated Income Statement
22 Second Quarter / First Half Year Results 2023 28.07.2023 First Half Year 2023 – Highlights Consolidated Income Statement CHF m 2023 2022 – Gross margin declined to 26.6 %, driven by lower CHF m % CHF m % Sales 2’284 100.0 2’563 100.0 volumes Costs of goods sold -1’676 73.4 -1’805 70.4 Gross profi
Slide 23: First Half Year 2023 – Cash Flow Statement
23 Second Quarter / First Half Year Results 2023 28.07.2023 First Half Year 2023 – Highlights Cash Flow Statement CHF m 2023 2022 Net result Adjustment for: 232 386 – Cash generated from operating activities increased Depreciation and amortization 120 137 Impairment and reversal of impairment Remeas
Slide 24: First Half Year 2023 – Balance Sheet
24 Second Quarter / First Half Year Results 2023 28.07.2023 First Half Year 2023 – Balance Sheet 30.06.2023 31.12.2022 30.06.2023 31.12.2022 ASSETS CHF m % CHF m % EQUITY AND LIABILITIES CHF m % CHF m % Noncurrent assets Equity Property, plant, and equipment 1’503 1’549 Share capital 724 863 Right-o
Slide 25: Geographic split Regional headline
25 Second Quarter / First Half Year Results 2023 28.07.2023 Geographic split Regional headline H1 sales CHF 2 284 m – Sales in the Americas were lower due to the divestment in CHF m, % in local currency of the North American Land Oil business as well as force majeure declarations in the first quarte
Slide 26: EBITDA / EBIT Bridge First Half Year 2023
26 Second Quarter / First Half Year Results 2023 28.07.2023 EBITDA / EBIT Bridge First Half Year 2023 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 27: ROIC vs. increased cost of capital
27 Second Quarter / First Half Year Results 2023 28.07.2023 ROIC vs. increased cost of capital Improvement drivers ROIC1 in % 3 10.6 % 9.9 % Cost of 3 capital: 8.5 % ~ 9 % − Organic growth 7.7 % 2 7.4 % − Increasing operating margin − Reducing nonoperating cost 1.5 % − Improving capital turns (repor
Slide 28: Cost dynamics – flat pricing, volumes impacted by macro environment
28 Second Quarter / First Half Year Results 2023 28.07.2023 Cost dynamics – lower year-on- Flat pricing – Volumes impacted year and sequentially by macro environment − Raw materials decreased year-on-year (sequential - 6 %) − Recessionary economic environment in Q2 − Energy down year-on-year (sequen
Slide 29: Reporting aligned with new operating structure as of Q1 2023
29 Second Quarter / First Half Year Results 2023 28.07.2023 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 Solutions, Industrial Applications,
Slide 30: 2022 – Reflecting Business Unit Structure as of 1 Jan 2023
30 Second Quarter / First Half Year Results 2023 28.07.2023 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 EBITDA EBITDA EBITDA EBITDA EBITDA
Slide 31: Accelerating demand for sustainable products – sales by end market
31 Second Quarter / First Half Year Results 2023 28.07.2023 Exposure to attractive consumer markets of around 50 %... …with accelerating demand for sustainable products Sales by end market (Q2 2023 LTM1) Catalysts 21 % 21 % Chemical Process 46 % Home & Personal Care ~ 20 – 25 % Other Industrial < 5
Slide 32: ESG – Clariant's Sustainability Transformation Commitment
32 Second Quarter / First Half Year Results 2023 28.07.2023 ESG – Clariant’s Sustainability Transformation Commitment Sustainability priorities Investment in operations & portfolio Fighting Climate Change Increasing Circularity Sustainable operations Reducing our own carbon Products and solutions th
Slide 33: Recognized as an industry leader by ESG ratings and rankings
33 Second Quarter / First Half Year Results 2023 28.07.2023 Clariant is well recognized as an industry leader by important ESG ratings and rankings Status as of July 2023
Slide 34: Debt Maturity Profile as of 30 June 2023
34 Second Quarter / First Half Year Results 2023 28.07.2023 Debt Maturity Profile as of 30 June 2023 Liquidity Financial debt maturities Cash and short-term deposits in CHF m in CHF m CHF bond Certificates of indebtedness 330 Short-term loans, lease and other liabilities 304 Derivatives 242 160 214
Slide 35: Calendar of Upcoming Corporate Events
35 Second Quarter / First Half Year Results 2023 28.07.2023 Calendar of Upcoming Corporate Events 2023 2024 30 October 2023 9 April 2024 Third Quarter / Nine Month 2023 AGM 2024 Reporting 28 July 2023 29 February 2024 Second Quarter / Fourth Quarter / First Half Year 2023 Full Year 2023 Reporting Re
Slide 36: The Executive Leadership Team
36 Second Quarter / First Half Year Results 2023 28.07.2023 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 Judith Bischof Richard Haldimann Chris
Slide 37: IR Contacts
37 Second Quarter / First Half Year Results 2023 28.07.2023 IR Contacts ANDREAS SCHWARZWÄLDER Head of Investor Relations Phone: +41 61 469 63 73 Email: investor-relations@clariant.com MARIA IVEK Senior Investor Relations Officer Phone: +41 61 469 63 73 Email: investor-relations@clariant.com THIJS BO
Slide 38: Thank you
Thank you