Slide 1: Fourth Quarter / Full Year Results 2023
Fourth Quarter / Full Year Results 2023 Analyst presentation 29.02.2024
Slide 2: Disclaimer
2 Fourth Quarter / Full Year Results 2023 29.02.2024 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 informati
Slide 3: Group performance
Greater chemistry CLARIANT
Slide 4: Highlights Q4 / FY 2023
4 Fourth Quarter / Full Year Results 2023 29.02.2024 Highlights Q4 / FY 2023 Key Figures 1 062 m 158 m / 14.9 % Sales Q4 2023 EBITDA before exceptionals1 Q4 2023 4 377 m 641 m / 14.6 % Sales FY 2023 EBITDA before exceptionals1 FY 2023 216 m 36 % Free cash flow2 FY 2023 FCF conversion3 FY 2023 205 m
Slide 5: Fourth Quarter 2023 Strategic Priorities
5 Fourth Quarter / Full Year Results 2023 29.02.2024 Fourth Quarter 2023 Strategic Priorities – sunliquid® resolution ▪ Cease bioethanol production in Romania, downsize related activities in Germany ▪ Capabilities to maintain the technology and to fulfill existing contractual obligations will be kep
Slide 6: Q4 sales: disciplined value-based pricing, volumes impacted by macro
6 Fourth Quarter / Full Year Results 2023 29.02.2024 Q4 sales: Disciplined value-based pricing, volumes impacted by macro and project trends – sequential up 4 % in local currency (LC1) - 14 % 1 323 - 49 + 4 % LC -6% - 76 + 3 % in CHF - 58 1 140 - 16 1 062 - 61 1 031 -4% -6% -4% -1% -5% Catalysts + 3
Slide 7: Geographic split Regional headline
7 Fourth Quarter / Full Year Results 2023 29.02.2024 Geographic split Regional headline Q4 sales CHF 1 062 m – Sales in the Americas declined primarily due to scope; in CHF m, % in local currency1 11 % lower organic sales, attributable to aviation business in Care Chemicals (formula-based pricing) a
Slide 8: Q4 EBITDA: Volume declines and restructuring impacting profitability
8 Fourth Quarter / Full Year Results 2023 29.02.2024 Q4 EBITDA: Volume declines and restructuring impacting profitability while delivering on performance programs + 490 bps - 31 % 158 154 - 28 14.9 % 11.6 % Driven by sales: 106 - 46 Scope - 9 % CHF 43 m restructuring 10.0 % (CHF 35 m related to 45 P
Slide 9: Significant improvement of non-financial KPIs
9 Fourth Quarter / Full Year Results 2023 29.02.2024 Significant improvement of non-financial KPIs – 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 % reduction in Scope
Slide 10: Business performance
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Slide 11: Fourth Quarter 2023 Care Chemicals Highlights
11 Fourth Quarter / Full Year Results 2023 29.02.2024 Fourth Quarter 2023 Highlights Care Chemicals in CHF m Q4 2023 Q4 2022 % CHF % LC1 – Volume declined marginally year-on-year; positive Sales 549 714 - 23 - 17 developments in Oil Services and Mining Solutions; EBITDA 110 138 - 20 weakness in Crop
Slide 12: Fourth Quarter 2023 Catalysts Highlights
12 Fourth Quarter / Full Year Results 2023 29.02.2024 Fourth Quarter 2023 Highlights Catalysts in CHF m Q4 2023 Q4 2022 % CHF % LC1 – Volume declined in all segments except Specialties vs. a Sales 258 310 - 17 - 10 very strong comparison base; sequentially flat as guided; EBITDA - 10 36 - 128 contin
Slide 13: sunliquid impacts 2023 and 2024
13 Fourth Quarter / Full Year Results 2023 29.02.2024 sunliquid® impacts 2023 and 2024 2023 in CHF m Guidance Q4 2023 FY 2023 Sales 4 11 Operational impact1 -9 - 43 Total exceptional items1 negative 60 - 90 - 53 - 60 restructuring - 35 - 42 provisions/exceptionals - 18 -18 Impairments2 negative 80 -
Slide 14: Fourth Quarter 2023 Adsorbents & Additives Highlights
14 Fourth Quarter / Full Year Results 2023 29.02.2024 Fourth Quarter 2023 Highlights Adsorbents & Additives in CHF m Q4 2023 Q4 2022 % CHF % LC1 – Volume declined double-digit, price slightly negative, Sales 255 299 - 15 - 11 both primarily driven by Additives segments; sequentially EBITDA 16 35 - 5
Slide 15: On track to achieve total cost savings of CHF 170 m by 2025
15 Fourth Quarter / Full Year Results 2023 29.02.2024 On track to achieve total cost savings of CHF 170 m by 2025 – Q4 2023 delivered CHF 14 m savings; FY 2023 CHF 50 m savings 170 10 20 Increased cost savings target by 50 CHF 10 m to align cost base 41 Additional savings of 24 30 CHF 50 m expected
Slide 16: Full Year 2023 Highlights
16 Fourth Quarter / Full Year Results 2023 29.02.2024 Full Year 2023 Highlights Key Figures – Sales decreased by 10 % in LC1 (- 7 % organic in LC1) – Selling, general, and administrative costs (SG&A) declined by 15 % (834 m FY22) due to disposal effects and benefits from performance programs despite
Slide 17: Outlook
Outlook
Slide 18: Outlook 2024: Local currency growth and margin improvement
18 Fourth Quarter / Full Year Results 2023 29.02.2024 Outlook 2024: Local currency growth and margin improvement 2024 Internal Factors Top line – Growth in Care Chemicals and Adsorbents & Additives to compensate for temporary slowdown in Catalysts momentum – Focus on pricing in recessionary/deflatio
Slide 19: Medium-term outlook: Continued progress in 2025 toward unchanged targets
19 Fourth Quarter / Full Year Results 2023 29.02.2024 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 ~ 15.0 % FY impact and Improved
Slide 20: Appendix
Appendix
Slide 21: Regular distribution of CHF 0.42 per share proposed
21 Fourth Quarter / Full Year Results 2023 29.02.2024 Regular distribution of CHF 0.42 per share proposed based on operational 2023 performance Distribution in CHF per share / year of pay-out 3.001 – The Board of Directors (BoD) recommends a regular distribution of CHF 0.42 per share to the Annual G
Slide 22: Modeling Guidance 2024 vs. 2023
22 Fourth Quarter / Full Year Results 2023 29.02.2024 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 Assuming 9 months Care Chemicals Q1 2024 ~ CHF 75 m ~ CHF 35 m Cosmetics contribution m
Slide 23: Fourth Quarter 2023 – Overview
23 Fourth Quarter / Full Year Results 2023 29.02.2024 Fourth Quarter 2023 – Overview Group Care Chemicals in CHF m Q4 2023 Q4 2022 % CHF % LC1 in CHF m Q4 2023 Q4 2022 % CHF % LC1 Sales 1 062 1 323 - 20 - 14 Sales 549 714 - 23 - 17 EBITDA 106 154 - 31 EBITDA 110 138 - 20 EBITDA margin 10.0 % 11.6 %
Slide 24: Full Year 2023 – Overview
24 Fourth Quarter / Full Year Results 2023 29.02.2024 Full Year 2023 – Overview Group Care Chemicals in CHF m FY 2023 FY 2022 % CHF % LC1 in CHF m FY 2023 FY 2022 % CHF % LC1 Sales 4 377 5 198 - 16 - 10 Sales 2 320 2 937 - 21 - 15 EBITDA 607 810 - 25 EBITDA 462 573 - 19 EBITDA margin 13.9 % 15.6 % E
Slide 25: Full Year 2023 – Highlights: Consolidated Income Statement
25 Fourth Quarter / Full Year Results 2023 29.02.2024 Full Year 2023 – Highlights Consolidated Income Statement CHF m 2023 2022 – Gross margin increased to 25.3 % despite lower CHF m % CHF m % Sales 4 377 100.0 5 198 100.0 volumes, benefitting from lower raw material costs and Costs of goods sold -
Slide 26: Full Year 2023 – Highlights: Cash Flow Statement
26 Fourth Quarter / Full Year Results 2023 29.02.2024 Full Year 2023 – Highlights Cash Flow Statement CHF m 2023 2022 – Cash generated from operating activities decreased by Net result 179 116 Adjustment for: Depreciation and amortization 236 276 Impairment and reversal of impairment 89 462 Remeasur
Slide 27: Full Year 2023 – Balance Sheet
27 Fourth Quarter / Full Year Results 2023 29.02.2024 Full Year 2023 – Balance Sheet 31.12.2023 31.12.2022 31.12.2023 31.12.2022 ASSETS CHF m % CHF m % EQUITY AND LIABILITIES CHF m % CHF m % Noncurrent assets Equity Property, plant, and equipment 1 439 1 549 Share capital 724 863 Right-of-use assets
Slide 28: Geographic split Regional headline
28 Fourth Quarter / Full Year Results 2023 29.02.2024 Geographic split Regional headline FY sales CHF 4 377 m – Sales in the Americas declined primarily due to scope; in CHF m, % in local currency1 7 % lower organic sales attributable to lower volumes in Care Chemicals and Adsorbents & Additives; po
Slide 29: EBITDA / EBIT Bridge Full Year 2023
29 Fourth Quarter / Full Year Results 2023 29.02.2024 EBITDA / EBIT Bridge Full 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 D&I1 EBITA
Slide 30: ROIC vs. cost of capital
30 Fourth Quarter / Full Year Results 2023 29.02.2024 ROIC vs. cost of capital Improvement drivers ROIC1 in % 3 10.6 % 9.9 % 4 Cost of 9.5 % 7.7 % 2 capital: − Organic growth 7.4 % ~9% − Increasing operating margin 6.6 % − Reducing nonoperating cost (reported) 1.5 % − Improving capital turns (report
Slide 31: Cost dynamics and pricing/volume trends
31 Fourth Quarter / Full Year Results 2023 29.02.2024 Cost dynamics – lower year-on- FY 2023: Flat pricing – Volumes year and sequentially mixed impacted by macro environment − Raw materials decreased year-on-year (sequential - 3 %) − Recessionary economic environment maintained in Q4 2023 − Energy
Slide 32: Sales by end market (FY 2023)
32 Fourth Quarter / Full Year Results 2023 29.02.2024 Exposure to attractive consumer markets of around 50 %... …with accelerating demand for sustainable products Sales by end market (FY 2023) Catalysts 22 % 22 % Chemical Process 43 % Home & Personal Care ~ 20 – 25 % Other Industrial < 5 % Consumer
Slide 33: ESG – Clariant's Sustainability Transformation Commitment
33 Fourth Quarter / Full Year Results 2023 29.02.2024 ESG – Clariant’s Sustainability Transformation Commitment Sustainability priorities Investment in operations and portfolio Fighting Climate Change Increasing Circularity Sustainable operations Reducing our own carbon Products and solutions that e
Slide 34: Recognized as industry leader by ESG ratings and rankings
34 Fourth Quarter / Full Year Results 2023 29.02.2024 Clariant is well recognized as an industry leader by important ESG ratings and rankings Status as of February 2024
Slide 35: Debt Maturity Profile as of 31 December 2023
35 Fourth Quarter / Full Year Results 2023 29.02.2024 Debt Maturity Profile as of 31 December 2023 Liquidity Financial debt maturities Cash and short-term deposits in CHF m in CHF m CHF bond Certificates of indebtedness 594 Short-term loans, lease and other liabilities Derivatives 447 160 593 241 22
Slide 36: Top 20 Chemicals in Percentage of Total Raw Material Cost
36 Fourth Quarter / Full Year Results 2023 29.02.2024 Full Year 2023 Top 20 Chemicals in Percentage of Total Raw Material Cost TOP 5 CHEMICALS TOP 6 - 20 CHEMICALS 1 Ethylene 6 Bentonite 2 Propane-1,2-diol 7 Palladium 3 Ethylene Oxide 8 Carbon Phosphinic acid, sodium salt, 9 Aluminium Oxide 4 hydrat
Slide 37: Sales and Cost Structure (indicative)
37 Fourth Quarter / Full Year Results 2023 29.02.2024 Full Year 2023 – Sales and Cost Structure (indicative) Global Sales Distribution1 Global Cost Distribution 2 in % in % Other 8% JPY Other JPY 4% 14 % 2% BRL EUR 4% 36 % BRL 6% EUR 30 % INR INR 5% 6% CNY 7% CNY 8% USD USD 33 % 25 % CHF 11 % 1 Base
Slide 38: Calendar of Upcoming Corporate Events
38 Fourth Quarter / Full Year Results 2023 29.02.2024 Calendar of Upcoming Corporate Events 2024 14 March 2024 9 April 2024 30 July 2024 Integrated Report AGM 2024 Second Quarter / Half Year 2024 Reporting 29 February 2024 30 April 2024 29 October 2024 Fourth Quarter / First Quarter Third Quarter /
Slide 39: The Executive Leadership Team
39 Fourth Quarter / Full Year Results 2023 29.02.2024 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 Hanse
Slide 40: IR Contacts
40 Fourth Quarter / Full Year Results 2023 29.02.2024 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