Slide 1: Fourth Quarter / Full Year Results 2022
Fourth Quarter / Full Year Results 2022 Analyst Presentation 2 March 2023
Slide 2: Disclaimer
2 Fourth Quarter / Full Year Results 2022 2 March 2023 Disclaimer This presentation contains certain statements that are neither conditions, including currency fluctuations, inflation, and consumer reported financial results nor other historical information. confidence, on a global, regional, or nat
Slide 3: Fourth Quarter / Full Year Results 2022
Fourth Quarter / Full Year Results 2022
Slide 4: Continued strong sales growth in Q4 2022
4 Fourth Quarter / Full Year Results 2022 2 March 2023 Continued strong sales growth in Q4 2022… … 13 % price contribution in softening demand environment 1 Q4 sales (continuing operations) up + 12 % in LC1 – + 13 % price contribution fully countered continued cost inflation – – 1 % volume decrease
Slide 5: Q4 2022 profitability impacted by restructuring – strong operating cash generation
5 Fourth Quarter / Full Year Results 2022 2 March 2023 Q4 2022 profitability impacted by restructuring – strong operating cash generation 2 EBITDA margin 14.7 %, excluding CHF 40 m restructuring charge – Reported Q4 EBITDA margin of 11.6 % decreased by 470 bps • restructuring charge of CHF 40 m for
Slide 6: Q4 strategic priorities: growth investments, portfolio optimization, cost saving targets
6 Fourth Quarter / Full Year Results 2022 2 March 2023 Q4 strategic priorities related to continued growth investments, portfolio optimization, and accelerated cost saving targets… 3 Executed strategic priorities – Growth Investments in China – Goodwill / Asset Impairments – Care Chemicals Ethoxylat
Slide 7: Increased distribution proposal and FY 2023 outlook
7 Fourth Quarter / Full Year Results 2022 2 March 2023 … complemented with an increased regular distribution proposal to the shareholders and the FY 2023 Outlook 4 Dividend 5 FY 2023 Group guidance – The Board of Directors recommends an increased regular – Full Year 2023 expectations: distribution o
Slide 8: Fourth Quarter 2022 – Group Overview
8 Fourth Quarter / Full Year Results 2022 2 March 2023 Fourth Quarter 2022 – Group1 Overview in CHF m Q4 2022 Q4 2021 % CHF % LC2 FY 2022 FY 2021 % CHF % LC2 Business Area composition1 (in %) Sales 1 323 1 242 +7 + 12 5 198 4 372 + 19 + 24 EBITDA 154 203 - 24 810 708 + 14 Sales EBITDA EBITDA margin
Slide 9: Fourth Quarter 2022 – Care Chemicals
9 Fourth Quarter / Full Year Results 2022 2 March 2023 Fourth Quarter 2022 – Care Chemicals in CHF m Q4 2022 Q4 2021 % CHF % LC1 FY 2022 FY 2021 % CHF % LC1 Market Dynamics Sales 473 475 0 +4 2 099 1 699 + 24 + 28 – Continued normalization of global industrial EBITDA 91 99 -8 469 351 + 34 demand and
Slide 10: Fourth Quarter 2022 – Catalysis
10 Fourth Quarter / Full Year Results 2022 2 March 2023 Fourth Quarter 2022 – Catalysis in CHF m Q4 2022 Q4 2021 % CHF % LC1 FY 2022 FY 2021 % CHF % LC1 Market Dynamics Sales 310 277 + 12 + 18 989 907 +9 + 14 – Continued demand for more sustainable EBITDA 36 46 - 22 93 152 - 39 solutions and continu
Slide 11: Fourth Quarter 2022 – Natural Resources
11 Fourth Quarter / Full Year Results 2022 2 March 2023 Fourth Quarter 2022 – Natural Resources in CHF m Q4 2022 Q4 2021 % CHF % LC1 FY 2022 FY 2021 % CHF % LC1 Market Dynamics Sales 540 490 + 10 + 16 2 110 1 766 + 20 + 25 – Destocking and softer demand in global EBITDA 82 84 -2 380 300 + 27 industr
Slide 12: Full Year 2022 – Key Financial Group Figures
12 Fourth Quarter / Full Year Results 2022 2 March 2023 Full Year 2022 – Key Financial Group Figures in CHF m Full Year 2022 Full Year 2021 − Full Year 2022 net result from continuing operations decreased to CHF - 101 m predominantly due to non- Continuing operations cash impairments booked for Nort
Slide 13: Total cost saving programs increased to CHF 160 m by 2025
13 Fourth Quarter / Full Year Results 2022 2 March 2023 Total cost saving programs increased from CHF 110 m to CHF 160 m by 2025 due to implementation of new operating model – Good progress made towards the 2025 cost savings target – Additional savings of CHF 50 m from implementation of new of CHF 1
Slide 14: More disciplined Capex of CHF 209 m in 2022
14 Fourth Quarter / Full Year Results 2022 2 March 2023 More disciplined Capex of CHF 209 m in 2022 supported improved cash conversion close to 2025 target − FY 2022 Capex of CHF 209 m (property, plant, and equipment) Resulting in a significant improvement in FCF − Decrease follows bulk of growth in
Slide 15: ESG Update
CLARIANT™ ESG Update Greater chemistry
Slide 16: Fighting Climate Change: GHG emissions decoupled from volume growth
16 Fourth Quarter / Full Year Results 2022 2 March 2023 Fighting Climate Change Continued advance on climate roadmap as execution of initiatives decoupled greenhouse gas (GHG) emissions from volume growth Reducing our carbon footprint… …and the carbon footprint of our raw materials 40 % reduction in
Slide 17: Comprehensive approach, achieving emission reduction and transparency
17 Fourth Quarter / Full Year Results 2022 2 March 2023 Fighting Climate Change Comprehensive approach, achieving emission reduction and transparency SUPPLIERS CLARIANT FROM-CRADLE-TO-GATE SCOPE 3 SCOPE 2 SCOPE 1 Clariant Raw materials1 Purchased energy Production facilities CliMate tool Customers 2
Slide 18: Outlook 2023
CLARIANT™ Outlook 2023 Greater chemistry
Slide 19: Outlook 2023: FY sales around CHF 5 bn – slight margin improvement
19 Fourth Quarter / Full Year Results 2022 2 March 2023 Outlook 2023: FY sales around CHF 5 bn – slight margin improvement External Factors FY 2023 Group Internal Factors − Easing economic recession sentiment, • Sales of around CHF 5 bn, including − Maintain pricing in a deflationary including moder
Slide 20: Backup Slides New Operating Model
Backup Slides New Operating Model Fourth Quarter / Full Year Results 2022
Slide 21: Financial Reporting Structure as of 2023
21 Fourth Quarter / Full Year Results 2022 2 March 2023 Financial Reporting Structure as of 2023 Starting in Q1 2023, Clariant’s financial reporting will be aligned with its new operating model as introduced last year Former Reporting Structure: New Reporting Structure Three Business Areas, made up
Slide 22: Pro Forma 2022 – Business Unit Structure as of 1 Jan 2023
22 Fourth Quarter / Full Year Results 2022 2 March 2023 Pro Forma 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 E
Slide 23: Modeling Guidance 2023 vs. 2022
23 Fourth Quarter / Full Year Results 2022 2 March 2023 Modeling Guidance 2023 vs. 2022 Acquisition Divestment Business Closing Sales impact 2023 EBITDA impact Comments Unit vs. FY 2022 2023 vs. FY 2022 US Attapulgite Adsorbents & 22 October addition ~ CHF 35 m accretive around mid- business assets
Slide 24: Backup Slides Fourth Quarter / Full Year Results 2022
Backup Slides Fourth Quarter / Full Year Results 2022
Slide 25: 5% increase in regular distribution proposed
25 Fourth Quarter / Full Year Results 2022 2 March 2023 5 % increase in regular distribution proposed based on strong operational 2022 performance Distribution in CHF per share / year of pay-out 3.001 – The Board of Directors (BoD) recommends an increased regular distribution of CHF 0.42 (+ 5 %) per
Slide 26: Fourth Quarter 2022 – Group Overview: Geographic split
26 Fourth Quarter / Full Year Results 2022 2 March 2023 Fourth Quarter 2022 – Group1 Overview Geographic split – Europe with sales growth due to pricing in Care Chemicals and Natural Resources. Strong volume increase in Catalysis and Sales CHF 1 323 m notable decline in Care Chemicals and Natural Re
Slide 27: Fourth Quarter 2022 – Sales and EBITDA by Business Area
27 Fourth Quarter / Full Year Results 2022 2 March 2023 Fourth Quarter 2022 – Sales and EBITDA by Business Area Sales EBITDA in CHF m 2022 2021 % LC1 2022 2021 % CHF Care Chemicals 473 475 +4% 91 99 -8% margin 19.2 % 20.8 % Catalysis 310 277 + 18 % 36 46 - 22 % margin 11.6 % 16.6 % Natural Resources
Slide 28: Exposure to Attractive Consumer Markets Increased
28 Fourth Quarter / Full Year Results 2022 2 March 2023 Exposure to Attractive Consumer Markets Increased to 50 %... …with Accelerating Demand for Sustainable Products Sales by End Market (2022) Chemical Consumer Catalysts Process 19 % 50 % 19 % Other Industrial Home & Personal Care <5% ~ 25 % Minin
Slide 29: Full Year 2022 – Group Overview: Geographic split
29 Fourth Quarter / Full Year Results 2022 2 March 2023 Full Year 2022 – Group1 Overview Geographic split – Europe with strong sales growth supported by notable growth in Care Chemicals (price) and Natural Resources (both volume Sales CHF 5 198 m and price) while Catalysis notably declined (project
Slide 30: Full Year 2022 – Sales and EBITDA by Business Area
30 Fourth Quarter / Full Year Results 2022 2 March 2023 Full Year 2022 – Sales and EBITDA by Business Area Sales to third parties EBITDA2 in CHF m 2022 2021 % LC1 2022 2021 % CHF Care Chemicals 2 099 1 699 + 28 % 469 351 + 34 % margin 22.3 % 20.7 % Catalysis 989 907 + 14 % 93 152 - 39 % margin 9.4 %
Slide 31: EBITDA / EBIT Bridge Full Year 2022
31 Fourth Quarter / Full Year Results 2022 2 March 2023 EBITDA / EBIT Bridge Full Year 2022 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 EBIT
Slide 32: Full Year 2022 – Net Result and Net Operating Cash Flow
32 Fourth Quarter / Full Year Results 2022 2 March 2023 Full Year 2022 – Net Result and Net Operating Cash Flow Net Result Net Operating Cash Flow in CHF m in CHF m 825 646 530 509 535 502 502 578 428 1664 363 6952 334 356 373 302 812 4623 239 263 269 217 369 2311 292 130 116 38 2014 2015 2016 2017
Slide 33: Full Year 2022 – Consolidated Statements of Cash Flows
33 Fourth Quarter / Full Year Results 2022 2 March 2023 Full Year 2022 – Consolidated Statements of Cash Flows All figures including discontinued operations in CHF m Full Year 2022 Full Year 2021 − Full year 2022 net result from continuing Net result from continuing operations - 101 292 operations o
Slide 34: Continued ROIC improvement exceeding cost of capital
34 Fourth Quarter / Full Year Results 2022 2 March 2023 Continued ROIC improvement exceeding cost of capital based on higher earnings ROIC1 in % 10.6 %3 9.9 % • Continued growth Cost of capital: ~9% • Increasing operating margin 7.7 %2 7.4 % • Reducing non-operating cost • Improving capital turns re
Slide 35: Debt Maturity Profile as of 31 December 2022
35 Fourth Quarter / Full Year Results 2022 2 March 2023 Debt Maturity Profile as of 31 December 2022 Liquidity Financial Debt Maturities in CHF m in CHF m Cash and short-term deposits 720 CHF bond Certificate of indebtedness Short-term loans, lease and other liabilities Derivatives 401 718 306 259 2
Slide 36: Full Year 2022 – Sales and Cost Structure
36 Fourth Quarter / Full Year Results 2022 2 March 2023 Full Year 2022 – Sales and Cost Structure1 Global Sales Distribution Global Cost Distribution in % in % JPY 2% Emerging Markets Emerging Markets 12 % 14 % CHF 2% JPY EUR EUR 2% 39 % 44 % CHF 4% USD USD 41 % 40 % 1These distributions represent a
Slide 37: Top Chemicals in Percentage of Total Raw Material Cost
37 Fourth Quarter / Full Year Results 2022 2 March 2023 Full Year 20221 Top 20 Chemicals in Percentage of Total Raw Material Cost TOP 5 CHEMICALS TOP 6 - 20 CHEMICALS 1 Ethylene 6 Methyloxirane 2 Propane-1,2-diol 7 Bentonite 3 Ethylene Oxide 8 Palladium Phosphinic acid, sodium salt, 9 Alcohols, C12-
Slide 38: Natural Gas – Global Footprint of Specialty Chemicals Exposure
38 Fourth Quarter / Full Year Results 2022 2 March 2023 Natural Gas – Global Footprint of Specialty Chemicals Exposure FY 2022 Regional Production vs. Regional Consumption Regional Production1 Split Energy Cost as % of: 6.5 in tons 4.9 5.2 5.2 Asia-Pacific Europe, Middle East & Africa 4.3 32 % Sales
Slide 39: ESG – Clariant's Sustainability Transformation Commitment
39 Fourth Quarter / Full Year Results 2022 2 March 2023 ESG – Clariant’s Sustainability Transformation Commitment Sustainability priorities Investment in operations & portfolio Fighting Climate Change Increasing Circularity Sustainable Reducing our own carbon Products and solutions that enable footp
Slide 40: Clariant recognized as industry leader by ESG ratings and rankings
40 Fourth Quarter / Full Year Results 2022 2 March 2023 Clariant is well recognized as an industry leader by important ESG ratings and rankings Status as of December 2022 Index / Ranking Clariant score Status First year of / Rating / Percentile rank or range inclusion 72 / 96th percentile DJSI Europ
Slide 41: The Executive Leadership Team
41 Fourth Quarter / Full Year Results 2022 2 March 2023 The Executive Leadership Team Under the leadership of Chief Executive Officer (CEO) Conrad Keijzer, the Executive Leadership Team includes the Chief Financial Officer (CFO), the Presidents of the Business Units Care Chemicals & Americas, Cataly
Slide 42: Calendar of Upcoming Corporate Events
42 Fourth Quarter / Full Year Results 2022 2 March 2023 Calendar of Upcoming Corporate Events 09 March 2023 Publication of Integrated Report 2022 04 April 2023 Annual General Meeting 05 May 2023 First Quarter 2023 Reporting 28 July 2023 Second Quarter / First Half Year 2023 Reporting 30 October 2023
Slide 43: IR Contacts
43 Fourth Quarter / Full Year Results 2022 2 March 2023 IR Contacts Andreas Schwarzwälder Phone: +41 61 469 63 73 Head of Investor Relations Email: investor-relations@clariant.com Maria Ivek Senior Investor Relations Officer Thijs Bouwens Investor Relations Officer