Clariant Ag · SIX:CLN
Clariant — Investor Presentation (November 2009)
42 slides from Clariant's investor presentation, Nov 4, 2009
Slide 1: Clariant Corporate Presentation 2009
Confidential Corp Comms 04.11.2009 Clariant Corporate Presentation 2009
Slide 2: Table of Contents
Table of Contents Key Facts Business and Products People & Culture Sustainability Innovation Confidential: Clariant > Back-up Slides Corp Comms (Copyright Clariant. All rights reserved.) 04.11.2009 Slide 2 / 42
Slide 3: Key Facts
x ™ Clariant
Slide 4: Clariant – key facts
Clariant – key facts Clariant is a world leader in colors, surface and performance chemicals Annual sales of CHF 8.1 billion in 2008 Headquartered in Muttenz near Basel, Switzerland World-wide operations, with more than 100 companies on five continents Approximately 20,000 employees Prod
Slide 5: Company History
Company History Ciba Rite Systems Sandoz Hoechst BTP Plc. Masterbatches Ricon Colors Sandoz est. 1863 1995 1997 2000 2006 2008 1995 Clariant / IPO* from Sandoz 1997 Acquired Hoechst Specialty Chemicals Business 2000 Acquired BTP Plc. 2006 Acquired Ciba Masterbatches 2008 Acquired Rite Syst
Slide 6: Clariant Executive Committee (EC) – Tasks and responsibilities
Clariant Executive Committee (EC) – Tasks and responsibilites Hariolf Kottmann Patrick Jany Chief Executive Officer (CEO) Chief Financial Officer (CFO) Clariant Excellence, Project Clariant, Group Finance, Group IT, Corporate HR & Talent Management, Auditing Group Legal, Group Communications, Corpor
Slide 7: Business & Products
Business & Products
Slide 8: Businesses and Market Segments
Businesses and Market Segments Masterbatches A world leading supplier of color and additive concentrates, both solid and liquid, and performance solutions to the plastics industry Pigments & One of the world's leading providers of colorants Additives for coatings, plastics and a key player in the gl
Slide 9: Clariant Worldwide
Clariant Worldwide Clariant is represented in over 100 countries Investment in high growth countries Global production and safety standards Countries where Clariant is represented Confidential: Clariant > Back-up Slides > Business & Products Corp Comms (Copyright Clariant. All rights reserved.
Slide 10: Textile, Leather & Paper Business Units
Textile, Leather & Paper Business Units Business Profile Facts & Figures Leading supplier of chemicals and dyes A leader in Leather, Paper Optical for textile, leather and paper industries Brighteners & Dyes; top two Textile, Provider of innovative products and number eight in Paper service-dr
Slide 11: NanoSphere – Nanotechnology in Action
NanoSphere® – Nanotechnology in Action NanoSphere® profile Unparalleled self cleaning finish – Hard for water and dirt particles to adhere – Reduced washing times and temperatures Development partnership with Schoeller Technologies – Based on modern nanotechnology C6 chemistry – Improved environ
Slide 12: Pigments & Additives
Pigments & Additives Business Profile Division Facts High-quality organic pigments, pigment A leader in pigments, key player in preparations, special dyes, flame additives niche markets retardants, waxes, polymer additives 24% of group sales Global supplier of pigments for paints, Global n
Slide 13: The Color of Saved Money - Easily Dispersible Pigments
The Color of Saved Money - Easily Dispersible Pigments ED Pigments Profile: ED pigments enable disperse organic pigments to be used with a dissolver, without an additional milling process. This results in: – simplification of the paint manufacturing process – improved productivity – lower cost E
Slide 14: Masterbatches
Masterbatches Business Profile Division Facts Globally number one with a strong A world leader in masterbatches position in packaging, consumer goods, 16% of group sales automotive and fiber Global network of 57 production Customer-specific products requiring sites in 33 countries formulat
Slide 15: 360° Service Delivering Significance
360° ServiceTM Delivering Significance 360° ServiceTM Profile A new model within the global plastics industry Clariant Masterbatches surrounds customers with technical, design and product development services that span the continuum of brand creation, brand protection and brand rejuvenation Th
Slide 16: Functional Chemicals
Functional Chemicals Business Profile Division Facts Ability to modify surfaces and Leading market positions in most interfaces is key to solving customers’ segments needs 35% of group sales Diverse markets - from personal care Global network in 45 countries to crop protection and oil serv
Slide 17: Clariant Oil Services
Clariant Oil Services Profile A tailored response to customer needs, born of attentive service, application experience and industry-leading research and development Integrity management, flow assurance and separation technologies for oil and gas producers Well service additives and chemical inte
Slide 18: Well diversified product portfolio
Well diversified product portfolio Divisions Textile, Leather & Paper Pigments & Additives Masterbatches Functional Chemicals Textile: 14% Leather: 5% Chemical Management Solutions: 8% Paper: 6% - oil services, mining services Coatings Business: 7% Industrial & Consumer Care: 17% - personal care, in
Slide 19: People and Culture
People and Culture
Slide 20: Empowering People - Culture of Excellence
Empowering People - Culture of Excellence Clariant Academy Talent Management Program Performance Management Leadership development “Best people in the right places” - Clear targets and capability building - KPIs* and accountabilities - Support and coaching - Reasonable consequence management Outstan
Slide 21: Sustainability
Sustainability
Slide 22: Securing the Future with Responsible Management
Securing the Future with Responsible Management Corporate Sustainability Strategy Policies and Processes Green Chemistry Local Communities Commitment to environmental Products that contribute to a Clariant – a responsible protection and safety more sustainable future member of the local community
Slide 23: Clariant is Globally Certified
Clariant is Globally Certified Prerequisite: Standardized business processes worldwide Audited management system for quality, environment, safety and health ISO 9001 ISO 14001 OHSAS 18001 Comprises all of Clariant Replaces 120 single certificates with limited scope Confidential: Clariant >
Slide 24: Innovation
Innovation
Slide 25: Innovation – Our Competitive Advantage
Innovation – Our Competitive Advantage Innovation drivers Product Innovation New product solutions for existing and new markets Market trends Service Innovation Customer needs New ways of delivering solution-driven customer value Technologies Process Innovation Improved production processes an
Slide 26: Market- and Customer-focused R&D Global Innovation Network
Market- and Customer-focused R&D Global Innovation Network R&D areas Key figures R&D 65% R&D: New products for existing markets R&D expenditures 2008: CHF 184 mn (2.3% of sales) 20% R&D: Process improvements R&D staff: 800 15% R&D: Technology / new areas R&D network: More than 50 coopera
Slide 27: Back-up Slides
Back-up Slides
Slide 28: Business Review
Business Review Confidential: Clariant Corporate Clariant Presentation > Back-up February Slides > Back-up 2009 Slides Corp Comms (Copyright Clariant. All rights reserved.) 04.11.2009 SlideSlide 28 / 42 28
Slide 29: Nine months 2009 – highlights
Nine months 2009 – highlights Sales down 18% in local currencies and 22% in CHF Demand bottomed out in the second quarter, modest recovery in the third quarter Quarter-on-quarter improvement in EBIT before exceptional items Cash flow from operations increased to CHF 533 million from CHF 174
Slide 30: Textile, Leather & Paper Chemicals – nine months results
Textile, Leather & Paper Chemicals – nine months results Third quarter 2009 2008 Change CHF million % of sales CHF million % of sales % CHF % LC Sales 425 521 -18 -12 EBITDA before exceptionals 37 8.7 43 8.3 -14 -4 Operating income before exceptionals 25 5.9 26 5.0 -4 9 Operating income 27 6.4 7 1.3
Slide 31: Pigments & Additives - nine months results
Pigments & Additives - nine months results Third quarter 2009 2008 Change CHF million % of sales CHF million % of sales % CHF % LC Sales 384 510 -25 -21 EBITDA before exceptionals 55 14.3 91 17.8 -40 -38 Operating income before exceptionals 39 10.2 71 13.9 -45 -45 Operating income 34 8.9 66 12.9 -48
Slide 32: Masterbatches - nine months results
Masterbatches - nine months results Third quarter 2009 2008 Change CHF million % of sales CHF million % of sales % CHF % LC Sales 305 338 -10 -4 EBITDA before exceptionals 37 12.1 37 10.9 0 12 Operating income before exceptionals 29 9.5 28 8.3 4 13 Operating income 10 3.3 17 5.0 -41 -36 Business tre
Slide 33: Functional Chemicals - nine months results
Functional Chemicals - nine months results Third quarter 2009 2008 Change CHF million % of sales CHF million % of sales % CHF % LC Sales 577 725 -20 -15 EBITDA before exceptionals 68 11.8 84 11.6 -19 -13 Operating income before exceptionals 51 8.8 67 9.2 -24 -16 Operating income 54 9.4 66 9.1 -18 -1
Slide 34: Full-year 2008 – highlights
Full-year 2008 – highlights Operating margin and cash flow guidance for 2008 achieved, despite unprecedented business conditions in the fourth quarter Higher sales prices (+7%) offset rising raw material costs (+15%) Gross margin slightly down due to low capacity utilization in the fourth quar
Slide 35: Textile, Leather & Paper Chemicals – full-year results
Textile, Leather & Paper Chemicals – full-year results Full-year 2008 2008 2007 Change CHF million % of sales CHF million % of sales % CHF % LC Sales 2 020 2 332 -13 -6 EBITDA before exceptionals 152 7.5 217 9.3 -30 -22 Operating income before exceptionals 87 4.3 145 6.2 -40 -30 Operating income -13
Slide 36: Pigments & Additives – full-year results
Pigments & Additives – full-year results Full-year 2008 2008 2007 Change CHF million % of sales CHF million % of sales % CHF % LC Sales 1 948 2 076 -6 0 EBITDA before exceptionals 293 15.0 278 13.4 5 12 Operating income before exceptionals 216 11.1 192 9.2 13 20 Operating income 198 10.2 77 3.7 157
Slide 37: Masterbatches – full-year results
Masterbatches – full-year results Full-year 2008 2008 2007 Change CHF million % of sales CHF million % of sales % CHF % LC Sales 1 278 1 380 -7 -1 EBITDA before exceptionals 122 9.5 153 11.1 -20 -14 Operating income before exceptionals 89 7.0 124 9.0 -28 -22 Operating income 76 5.9 102 7.4 -25 -19 B
Slide 38: Functional Chemicals – full-year results
Functional Chemicals – full-year results Full-year 2008 2008 2007 Change CHF million % of sales CHF million % of sales % CHF % LC Sales 2 825 2 745 3 9 EBITDA before exceptionals 316 11.2 262 9.5 21 28 Operating income before exceptionals 249 8.8 194 7.1 28 37 Operating income 236 8.4 194 7.1 22 30
Slide 39: Strategy update
Strategy update Confidential: Clariant Corporate Clariant Presentation > Back-up February Slides > Back-up 2009 Slides Corp Comms (Copyright Clariant. All rights reserved.) 04.11.2009 SlideSlide 39 / 42 39
Slide 40: Our roadmap – three steps to build a sustainable platform
Our roadmap – three steps to build a sustainable platform Timeline < 2009 > 2010 Restructuring Continuous Focus Long-term growth improvement Actions Project Clariant Clariant Excellence Growth & Opportunities Cash generation People Excellence Innovation Excellence Cost cutting Operational
Slide 41: Project Clariant initiatives
Project Clariant initiatives Sustainable NWC reduction Clear targets and owners Crisis production planning CASH Sustainable processes Procurement savings Tightly manage purchasing Renegotiate contracts Personnel cost reductions Cost reduction, at least 1 000 FTEs (possibly further reduct
Slide 42: 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