Performance Growth Innovation - Bioplastics News · 2 Public, Performance Growth Innovation –...

Public

Corporate Presentation

14.02.2018

Performance, Growth, InnovationCORPORATE PRESENTATION

Corporate Presentation, 14.02.2018

Table of Contents

Public, Performance Growth Innovation2

– Clariant at a glance

– A culture based on values

– A clearly defined corporate strategy

– Specific targets for the future

– Executive Committee

Public


14.02.2018

Clariant at a glance




Business AreasNet result 2017 (CHF m)

from continuing operations

Sales 2017 (CHF m)

from continuing operations

6377 302 4

18135EBITDA 2017 (CHF m)

before exceptionals

15.3%974EBITDA margin 2017

before exceptionals

156 in 52companies countries Employees 2017

A GLOBALLY LEADING COMPANY IN SPECIALTY CHEMICALS




North

America

1241

Latin

America

830

Europe

Middle East &

Africa

480

Asia-Pacific

1632

SALES PER REGION in CHF m, total 2017: 6 377

2194


Four Business Areas – the right portfolio for future growth


Care

Chemicals

Catalysis Natural

Resources

Plastics

& Coatings

SALES (CHF m) 1 575

EBITDA (CHF m) 290

EBITDA

margin18.4 %

SALES (CHF m) 767

EBITDA (CHF m) 198

EBITDA

margin25.8 %

SALES (CHF m) 1 357

EBITDA (CHF m) 207

EBITDA

margin15.3 %

SALES (CHF m) 2 678

EBITDA (CHF m) 388

EBITDA

margin14.5 %


Business Area – Care Chemicals


KEY FINANCIAL FIGURES 2017

Sales in million CHF

1575 4 - 5%Growth ambition per annum*

18-19%EBITDA margin potential*before exceptional items

EBITDA marginbefore exceptional items

18.4%

APPLICATIONS INDUSTRIAL & CONSUMER

SPECIALTIES

Automotive fluids

Aviation

Construction

Crop solutions

Gas treatment

Heat transfer fluids

Industrial & home care

Industrial lubricants

Paints and coatings

Personal care

Special solvents

NEW BUSINESS

DEVELOPMENT

Electronic materials

Additive Manufacturing / 3D

Printing materials

Food additives for the dairy,

bakery, and meat industries

Encapsulation technologies

* Over the cycle





24 -26%EBITDA margin potential*before exceptional items


25.8%

Business Area – Catalysis

APPLICATIONS CATALYSTS

Ammonia

Custom Catalysts

Ethylene and derivatives

Fischer-Tropsch

Fuel cell

Fuel upgrading

Gasoline desulfurization

Gas processing

Hydrogenation

Methanol

Off-gas treatment for

chemical plants and stationary engines

On-purpose propylene

Oxidation

Polypropylene

Refinery hydrogen

Refinery stream purification

Sour gas shift

Steam cracker / Olefin purification

Styrene and BTX, MTP

Synthetic natural gas

Zeolite powders

* Over the cycle

BIOTECHNOLOGY

Bioethanol and

alternative fuels

Bio-based specialties

and enzymes

KEY FINANCIAL FIGURES 2017





15 -17%EBITDA margin potential*before exceptional items


15.3%

Business Area – Natural Resources

APPLICATIONS FUNCTIONAL MINERALS

Additives for animal feed

Additives for paper and

detergent

Edible oil refining

Metal casting

Sediment management

Special civil engineering

and tunneling

Stabilizers for the plastics

industry

OIL & MINING SERVICES

Additive applications for

refinery companies

Process chemicals for the

mining industry

Specialty chemicals and

services, including

intelligent chemical

management for the oil and

gas industry

* Over the cycleKEY FINANCIAL FIGURES 2017




2678 Global GDPGrowth ambition per annum*

Steered to absolute

EBITDA before

exceptional items and

cash flow generationEBITDA marginbefore exceptional items

14.5%

Business Area – Plastics & Coatings

APPLICATIONS ADDITIVES

Flexible packaging films

reducing waste and

increasing recyclability

Light and heat stabilization,

flow properties

improvements

Light and thermal control of

agricultural films for

improved crop yield

Waxes, flame retardants

and polymer additives with

functional effects in plastics,

coatings and printing inks,

adhesives, textiles and

fibers and other applications

MASTERBATCHES

Color and additive

concentrate solutions for

plastics processing

Concentrates for functional

packaging, medical devices

& pharma packaging

Protection against moisture

and oxygen in drug

packaging

Small lot color plastic

compounds for the use in

automotive, electrical and

electronics markets

PIGMENTS

Applications for

conventional printing inks,

inkjet inks, and

electrophotographic toners

Coloration of plastic

applications

Decorative, industrial, and

automotive coatings

Special applications

* Over the cycleKEY FINANCIAL FIGURES 2017

Public


14.02.2018

A culture based on values



We create value

through appreciation of the needs

– of our customers by providing competitive

and innovative solutions

– of our employees by adhering

to our corporate values

– of our shareholders by achieving

above-average returns

– of our environment by acting sustainably

We aim to be the globally leading company

for specialty chemicals and to stand out for above-

average value creation for all of our stakeholdersVISION

MISSION

TARGETS

STRATEGY

Clariant as the globally leading companyfor specialty chemicals


Appreciation as the motor of daily

business

Sustainable company successes and

value generation can only be realized in a

corporate culture that is embraced by

everyone involved, and which achieves a

balance between business performance,

social interests, and environmental

targets.


A value system with focus on performance, people, and planet



Enterprise value

Net debt

Market capitalization

(incl. own shares)

2.8

4.3

2.73.7

5.4 5.66.3

5.8

9.0

0.5

0.11.7

1.8

1.5 1.3

1.31.5

1.5

3.3

4.44.4

5.5

6.9 6.9

7.67.3

10.5

2009 2010 2011 2012 2013 2014 2015 2016 2017

ENTERPRISE VALUE

in billion CHF

Performance – creating additional value



People – attracting and retaining talents

North

America

13%

Latin

America

14%

Asia-Pacific

26%

Middle East &

Africa

5%

employees (FTE)

18135

of the employees are based

in the emerging markets

43%Europe

42%



ENVIRONMENTAL TARGETS BY 2025 IN % (per ton of products produced)

Reduce Energy Consumption

– 30

Reduce Direct CO2 Emissions

– 30

Reduce Emissions of Greenhouse Gases

– 35

Reduce Volume of Waste

– 35

Reduce Water Consumption

– 35

Reduce Volume of Waste Water

– 40

Planet – environment protection as a driver for growth

Public


14.02.2018

A clearly definedcorporate strategy



Focus on innovation

through R&D

Add value with

sustainability

Reposition the

portfolio

Intensify

growth

Increase

profitability

Comprehensive restructuring

THREE PHASES OF STRATEGY IMPLEMENTATION (since 2009)

CLARIANT EXCELLENCE

PROFITABLE GROWTH

2009 2010 2011 2012 2013 2014 2015 2016

1 2 3 4 5

Five-pillar strategy to increase performance

2017


ENVIRONMENT

PROTECTION

GLOBALIZATION &

URBANIZATION

RESOURCES &

ENERGY

Focus on innovation through R&D


INNOVATION FIGURES

~ 1100 6 600

3.3%of Group sales 2017

spent in R&D

211 mof R&D expenditures

in CHF

> 125People in R&D

(end of 2017)

PatentsScientific

collaborations

Global R&D

Centers

8Technical

Application

Centers

> 50

GLOBAL TRENDS AS DRIVERS

FOR INNOVATION

1

2.5%Growth through

innovation*

* Contains the contribution to growth from both Top Line Innovation as well as Life Cycle Innovation. Potential cannibalization of existing sales caused by Life Cycle Innovation in certain

cases has not been excluded from calculation.



NEW PRODUCT HIGHLIGHTS FROM CLARIANT

HostatintTM A 100-ST

A range of super-transparent

preparations for fast color design of

metallic and mineral effect shades.

ReforMax® LDP Plus

New catalyst generation for Steam

Methane Reforming with an innovative

and unique eight-hole floral shape.

Focus on innovation through R&D1.

Genamin® Gluco 50

A unique label-free, renewable-based

amine neutralizer that is free of

volatile/semi-volatile compounds

(VOC/ SVOC) and thus suitable for

eco-labelled paints.

SCAVINATORTM

A new water-soluble scavenger that

controls hydrogen sulfide (H2S) and is

an alternative to triazine.


Dow Jones Sustainability Index

Add value with sustainability


FACTS AND FIGURES

2

75% 169products excelled

with the EcoTain® label

of Product Portfolio

meet Clariant’s sustainability

definition

80%of product portfolio

screened based on

36 sustainability criteria

LTAR*UN Global Compact, Responsible CareTM and

Together for Sustainability

Sustainability Dialog

By2025ambitious Environmental

Targets

decreased to 0.2 in 2017

compared to 0.33 in 2012established

Among top 4% of companies in Committed to

* LTAR = Lost Time Accident Rate

(the ratio of the number of occupational accidents where at least one day’s work was lost to every 200 000 hours of work).



Reposition the portfolio

– Based on a clear strategic focus

– markets with future perspectives and strong growth rates

– businesses with competitive positions and strong pricing power

OPTIMIZED PORTFOLIO FOR SUSTAINABLE PROFITABILITY

AC

QU

ISIT

ION

SD

IVE

ST

ME

NT

S

3

2012

Colex Spolka

Oxiteno Catalysts

2013

CRM (France)

Champion, Gulf of Mexico Oil

Business (USA)

BayInk (Germany)

Organic pigments business,

Jiangsu Multicolor (China)

Textile Chemicals

Paper Specialties

Emulsions

2014

Detergents & Intermediates,

Leather Services

Water Treatment (South Africa)

ASK Chemicals/Joint Venture

Plastichemix Industries (India)

VitaPac (Hong Kong)

Aerochem (Sweden)

2015

Energy Storage Business

Water Treatment Business

(Brazil)

Beraca – Division Health &

Personal Care (Brazil)

Companhia Brasileira

de Bentonita (Brazil)

Kilfrost’s Aircraft

De-icing

Business (USA, Asia)

2016

Vivimed Labs (India)

SQE Olivene (Italy)

Carboflex (Brazil)

Kel-Tech (USA)

X-Chem LLC (USA)

Mining Service Business of Flomin

(USA)

Chemical & Mining Services

(Australia)



Latin

13% America

6% MEA

Intensify growth in emerging markets

CLARIANT’S SALES SHIFT TO EMERGING MARKETS CONTINUES

4

North America 15%

Europe 49%

2005

17% Asia-Pacific

Latin

13% America

8% MEA

North America 19%

Europe 34%

26% Asia-Pacific

2017


Optimization

of sales and

marketing

processes

Increase profitability


– Cross-linking of Operational Excellence,

Innovation Excellence, Commercial Excellence,

and People Excellence is a key to success

– Cost discipline across the company

– Efficient delivery of business services

– Avoiding remnant costs from divestments

– Investments into innovation and capex projects

CLARIANT EXCELLENCE AS THE FOUNDATION FOR SUSTAINABLE GROWTH

5

CO

NT

EN

T F

OC

US

OPERATIONAL

EXCELLENCE

INNOVATION

EXCELLENCE

COMMERCIAL

EXCELLENCE

PEOPLE

EXCELLENCE

Efficiency

improvements

in all operational

areas

Establish Clariant

as a global

innovation leader

in the specialty

chemicals

business

Empowerment of

Clariant

employees to

manage company

performance

efficiently



PEOPLE EXCELLENCE

IN FIGURES

80%

44

18%Executives from high growth

markets

61%Talent promotion rate

to executive positions

1000 CHF

Senior Management positions

filled by internal placement

Clariant Academy

learning programs

Development and learning

investment / employee

(2016)

Retention of total

talents

92%

KEY ELEMENTS OF

PEOPLE EXCELLENCE

Drive individual, team and

organizational effectiveness

through strong leadership.

Consciously model behaviors

every day to provide a sense of

purpose to the individual and to

create employee engagement.

Effectively attract, retain,

develop and deploy key people

and create a high-performing,

sustainable organization.

Strengthen the capabilities of

individuals by offering tailored

and impactful learning

initiatives.

TALENT

MANAGEMENT

LEARNING AND

CAPABILITY

BUILDING

CULTURE AND

ENGAGEMENT

LEADERSHIP

DEVELOPMENT

People Excellence acts as enabler of strategy execution

Public


14.02.2018

Specific targets for the future


27

GROWTHINNOVATION

PERFORMANCE

2018

2018 KEY ELEMENTS PERFORMANCE

– Continued cost reduction and efficiency

– Clariant Excellence – Implementing new ways

of doing business

GROWTH

– Exploit growth markets in Asia and NORAM

– Seize opportunities in developed and other

emerging markets

INNOVATION

– Strengthen organization and processes

– Develop innovation pipeline

– Promote communication and cooperation

TARGET: Growth, higher EBITDA margin and operating cash flow progressing

Public, Performance Growth Innovation

Priorities 2018 – moving along the profitable growth path



MID-TERM TARGETS

Organic sales** growth

EBITDA* margin

ROIC

> global GDP growth

16–19%

> peer group average

Our aim is to make Clariant one of the most

profitable specialty chemicals companies by

continuously improving the EBITDA* margin.

* before exceptional items

** in local currencies

>20%

16 – 19%

10 – 15%

<10%

EBITDA*

margin2001 – 2009 2010 – 2017 Mid-term

FROM AVERAGE TO THE TOP –

ADVANCING INTO THE TOP TIER IN

SPECIALTY CHEMICALS

KEY PERFORMANCE INDICATORS (KPIs)

Financial targets – on the springboard to the next level of profitability

Public


14.02.2018

Executive Committee


The Executive Committee

HARIOLF KOTTMANN,

CEO

Chairman of the

Executive Committee

Responsibilities:

Corporate Planning & Strategy,

Group Communications, and

Group Legal

PATRICK JANY,

CFO

Member of the

Executive Committee

Responsibilities:

Corporate Accounting,

Corporate Controlling,

Corporate Tax, Corporate

Treasury, Corporate Mergers &

Acquisitions, Group Compliance,

Global Business Services,

Investor Relations, and the

regions Europe and Middle East

& Africa

CHRISTIAN

KOHLPAINTNER

Member of the

Executive Committee

Responsibilities:

Business Area Care Chemicals,

Business Area Catalysis (incl.

Biotechnology), Group Human

Resources, Group Technology &

Innovation, Corporate Senior

Management Development,

Clariant Excellence with a focus on

Innovation Excellence and People

Excellence, and the regions

Greater China, India, Japan, and

South East Asia & Pacific

30

BRITTA

FUENFSTUECK

Member of the

Executive Committee

Responsibilities:

Business Area Natural Resources,

Business Area Plastics & Coatings,

Group Information Technology,

Group Procurement, Corporate

Sustainability & Regulatory Affairs,

Digital Strategy, Commercial

Excellence, Operational

Excellence, Supply Chain

Excellence, and the regions Latin

America and North America

Public, Performance Growth Innovation


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 may differ materially from those

expressed in or implied by the statements.

Many of these risks and uncertainties relate to

factors that are beyond Clariant’s ability to control or

estimate precisely, such as future market conditions,

currency fluctuations, the behavior of other market

participants, the actions of governmental regulators

and other risk factors such as: the timing and

strength of new product offerings; pricing strategies

of competitors; the Company’s ability to continue to

receive adequate products from its vendors on

acceptable terms, or at all, and to continue to obtain

sufficient financing to meet its liquidity needs; and

changes in the political, social and regulatory

framework in which the Company operates or in

economic or technological trends or conditions,

including currency fluctuations, inflation and

consumer confidence, on a global, regional or

national basis.

Readers are cautioned not to place undue reliance

on these forward-looking statements, which speak

only as of the date of this document.

Clariant does not undertake any obligation to

publicly release any revisions to these forward-

looking statements to reflect events or

circumstances after the date of these materials.

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