First Half-Year / Second Quarter Results 30 JULY July 2015

Transcription

1 First Half-Year / Second Quarter Results 30 JULY 2015

2 First Half-Year

3 3 First Half-Year / Second Quarter Results 2015 First Half-Year improved profitability and cash generation in a challenging market - Continued sales growth in local currency in the first half of the year - Strong underlying growth in Care Chemicals and Natural Resources. Catalysis full year 2015 growth target confirmed - Plastics & Coatings impacted by weakness in Asia and North America - Mixed and volatile development across portfolio and regions, driven by regional- and segmentspecific factors - EBITDA* margin significantly improved, up 9 % in local currencies - Margin improvement based on strong market positions and efficiency gains - Increasing contribution from higher-margin businesses - Cash Flow generation significantly increased compared to last year - Operating cash flow for the first half at CHF 65 million vs CHF 113 million last year - Better net working capital management, particularly in inventories * before exceptional items.

4 4 First Half-Year / Second Quarter Results 2015 First Half-Year solid results achieved H1 / 2015 vs. H1 / 2014, all figures continuing operations Sales 2% sales growth in local currencies, 5% in Swiss francs EBITDA* 9% EBITDA* growth in local currencies, Margin rose to 14.5% from 14.0% Operating cash flow CHF 65 million vs. CHF 113 million Net income CHF 143 million compared to CHF 44 million last year * before exceptional items

5 Second Quarter 2015

6 6 First Half-Year / Second Quarter Results 2015 Sales remained stable headwinds from FX all figures continuing operations Sales mix Q Sales growth in local currencies Volume -1% Price 1% Acq./Div. 0% Germany 160 / 8% North America 257 / +7% Latin America 245 / +16% Brazil 86 / +8% Currency -8% Sales in LC were flat, with slightly higher prices and slightly lower volumes Double-digit sales growth in Latin America driven by Mexico and Brazil, solid growth in North America Weakness in Asia, driven by Catalysis in China, other smaller economies with good growth Europe 471 / 2% Middle East & Africa 97 / 21% Asia / Pacific 336 / 5% Sales Q2 2015: CHF m / +0% China 113 / 23% Europe with continued weakness but flat when adjusted for the reduction of low-margin products Emerging Markets Mature Markets

7 7 First Half-Year / Second Quarter Results 2015 Gross and EBITDA* margin significantly improved all figures continuing operations Gross margin above last year Benefitting from higher pricing and the reversal of inventory devaluation in Q1/15 Gross margin 30.7% 29.5% EBITDA* and EBITDA* margin significantly improved year-on-year Good progression in higher growth areas like Care Chemicals and Natural Resources EBITDA* CHF m EBITDA* margin % 14.0% Net income from continuing operations below last year CHF 56 m from CHF 83 m: Pre-tax income at same level as last year, Q2/14 tax was unusually low Net result CHF m * before exceptional items Q Q2 2014

8 8 First Half-Year / Second Quarter Results 2015 Solid cash flow generation all figures continuing operations Improved cash flow from operations due to lower NWC NWC/sales ratio was lower at 20.5% compared to 22.2% in Q Cash generation expected to increase in second half-year Operating cash flow CHF m Restructuring cash-out costs stable at CHF 24 million compared to CHF 23 million Cost incurred in smaller projects mainly to streamline and optimize the service organization -24 Restructuring -23 cash-out CHF m Net debt increased to CHF million compared to CHF million at year-end 2014 Net debt significantly below June of previous year Net debt CHF m * net debt of CHF m as of 31 December 2014 Q Q2 2014*

9 Business Area Performance

10 10 First Half-Year / Second Quarter Results 2015 Significant increase in profitability Second Quarter 2015 Sales Change EBITDA* margin EBIT* margin Business Area CHF m % CHF % LC Q2/15 Q2/14 Q2/15 Q2/14 Care Chemicals Catalysis Natural Resources Plastics & Coatings Continuing operations * before exceptional items

11 11 First Half-Year / Second Quarter Results 2015 Strong margins in Catalysis, solid sales growth in Care Chemicals LC sales growth EBITDA* margin Care Chemicals Care Chemicals with like-for-like growth of 9 % Growth being most pronounced in Personal Care, Crop Solutions and Home Care The EBITDA* margin increased to 20.2% from 15.3% in the previous year due to a positive mix-effect and the revaluation of inventories +3% 20.2% Catalysis** Sales in the second quarter of 2015 impacted by an unfavorable high base effect as expected and by a shift of two substantial orders from the second to the first quarter of 2015 The underlying demand pattern for Catalysis remains favorable; business is on track to achieve its 2015 targets -9% 23.9% * before exceptional items ** In Q the Business Area Catalysis & Energy was renamed in Business Area Catalysis as the Energy Storage business has been sold to UK-based Johnson Matthey.

12 12 First Half-Year / Second Quarter Results 2015 EBITDA* margin improvement in Natural Resources, volumes recovered in Plastics & Coatings LC sales growth EBITDA* margin Natural Resources Oil & Mining Services business with solid high single-digit sales growth in local currencies Oil Services, Mining Solutions and Refinery all contributed to growth Sales in Functional Minerals were impacted by the divestment of the Water Treatment business, underlying growth continued to be solid +1% 13.9% Plastics & Coatings Masterbatches experienced growth, Pigments and Additives below last year Heterogeneous regional development from business to business EBITDA* margin before exceptional items improved to 14.7% from 14.0%, all three businesses contributed to an increased profitability +0% 14.7% * before exceptional items.

13 13 First Half-Year / Second Quarter Results Separate subsidiary to be established for Business Area Plastics & Coatings The Business Units Masterbatches, Pigments and Additives have established themselves as leaders in their respective markets in terms of profitability and market share To further improve and safeguard competitiveness in already mature markets Plastics & Coatings will be managed with a stronger differentiated business steering with a clear focus on absolute profitability and cash generation To that effect, Clariant intends to establish a subsidiary for the Business Area Plastics & Coatings and thus allows for higher value creation The new subsidiaries across the world will be fully-owned by Clariant and will start operation as of 1 January 2016

14 Outlook

15 15 First Half-Year / Second Quarter Results 2015 Outlook 2015 heterogeneous macroeconomic environment Macroeconomic view Clariant expects the challenging environment, characterized by an increased volatility in commodity prices and currencies, to continue In emerging markets, the economic environment is expected to remain favorable but at a lower level and with increased volatility; moderate growth is expected in the United States, however, growth in Europe is expected to remain weak The combined effect of the appreciation of the Swiss franc with the weakening of the euro will impact Clariant s sales and profitability in absolute terms, but will be fairly neutral in terms of relative margins

16 16 First Half-Year / Second Quarter Results 2015 Outlook confirmed further progress in sales, profitability and cash 2015 Clariant will further progress in local currency and profitability In 2015 Clariant is improving its operational efficiency by implementing a lean service organization; it is further improving its marketing excellence and continues to launch innovations that generate value for its customers For the full-year 2015, Clariant expects low to mid-single digit sales growth in local currencies, an EBITDA margin before exceptional items above full-year 2014 and an increased cash flow generation and beyond 2015 will mark further progress towards our mid-term target of becoming a leading company for specialty chemicals, achieving a position in the top tier of the industry. This corresponds to an EBITDA margin range before exceptional items of 16% to 19% and a return on invested capital (ROIC) above peer group average

17 Back-up slides

18 18 First Half-Year / Second Quarter Results 2015 Key financials second quarter Second Quarter CHF m % of sales CHF m % of sales Sales % % Local currency growth (LC) 0% - Organic growth rate* 0% - Acquisitions/Divestments 0% Currencies -8% Gross profit % % EBITDA before exceptionals % % EBITDA % % Operating income before exceptionals % % Operating income % % Net result from continuing operations % % Net income Operating cash flow Sales from discontinued operations 0 32 Net result from discontinued operations 0-9 * Organic growth: volume and price effects excluding the impact of changes in foreign currency exchange rates and acquisitions/divestments 1 Total Group, including discontinued operations

19 19 First Half-Year / Second Quarter Results 2015 Cash flow second quarter Second quarter CHF m CHF m Net income Depreciation, amortization and impairment Payments for restructuring Other Operating cash flow before working capital changes Changes in working capital and provisions Operating cash flow Cash flow from investing activities thereof: property, plant and equipment thereof: changes in current financial assets and near cash assets thereof: acquisitions, disposals and other Cash flow before financing

20 20 First Half-Year / Second Quarter Results 2015 Financial results second quarter Second quarter CHF m CHF m Interest income 2 3 Other financial income 1 1 Total financial income 3 4 Interest costs thereof: effect of discounting of non-current provisions -1-1 thereof: interest component of pension provisions -4-6 Other financial expenses -2-1 Total financial expenses Currency result, net Total financial cost thereof reported under discontinued operations 0 0 Total financial costs (continuing operations)

21 21 First Half-Year / Second Quarter Results 2015 Sales and EBITDA margins by Business Area second quarter Second quarter Business Area / Segment: Sales EBITDA* EBITDA margin* CHF m % LC % of Group Q2/15 Q2/14 Care Chemicals Catalysis Natural Resources Plastics & Coatings Total continuing Sales in % of Group EBITDA* Plastics & Coatings 44% Care Chemicals 24% Natural Resources 20% Catalysis 12% Plastics & Coatings 39% Natural Resources 16% Care Chemicals 29% Catalysis 16% * before exceptional items

22 22 First Half-Year / Second Quarter Results 2015 Business Area performance second quarter Care Chemicals Catalysis Sales in CHF m EBITDA* in CHF m Sales in CHF m EBITDA* in CHF m Q Change (LC) Q Q Change (LC) Q Q Change (LC) Q Q Change (LC) Q % % 163 9% % 20.2% 15.3% 23.9% % Natural Resources Plastics & Coatings Sales in CHF m EBITDA* in CHF m Sales in CHF m EBITDA* in CHF m Q Change (LC) Q Q Change (LC) Q Q Change (LC) Q Q Change (LC) Q % % 39 7% 627 0% % % 5% % * before exceptional items

23 23 First Half-Year / Second Quarter Results 2015 Sales growth driven by volumes headwinds from FX in the first half-year all figures continuing operations Sales mix H Sales growth in local currencies Volume 2% Price 0% Acq./Div. 0% Germany 333 / 11% North America 534 / +5% Latin America 484 / +19% Brazil 173 / +8% Currency -7% Europe 989 / 2% Middle East & Africa 192 / 15% Asia / Pacific 672 / +1% China 219/ 15% Sales H1 2015: CHF m / +2% Emerging Markets Mature Markets

24 24 First Half-Year / Second Quarter Results 2015 Key financials first half-year Half-year results CHF m % of sales CHF m % of sales Sales % % Local currency growth (LC) 2% - Organic growth rate* 2% - Acquisitions/Divestments 0% Currencies -7% Gross profit % % EBITDA before exceptionals % % EBITDA % % Operating income before exceptionals % % Operating income % % Net result from continuing operations % % Net income Operating cash flow Sales from discontinued operations 0 98 Net result from discontinued operations 0-18 * Organic growth: volume and price effects excluding the impact of changes in foreign currency exchange rates and acquisitions/divestments 1 Total Group, including discontinued operations

25 25 First Half-Year / Second Quarter Results 2015 Cash flow first half-year Half-year results CHF m CHF m Net income Depreciation, amortization and impairment Payments for restructuring Other Operating cash flow before working capital changes Changes in working capital and provisions Operating cash flow Cash flow from investing activities thereof: property, plant and equipment thereof: changes in current financial assets and near cash assets thereof: acquisitions, disposals and other Cash flow before financing

26 26 First Half-Year / Second Quarter Results 2015 Financial result first half-year Half-year results CHF m CHF m Interest income 5 6 Other financial income 2 2 Total financial income 7 8 Interest expenses thereof: interest on non-current provisions -2-2 thereof: interest on post-employment benefit obligations Other financial expenses -5-4 Total financial expenses Currency result, net Total financial costs thereof reported under discontinued operations 0 2 Total financial costs (continuing operations)

27 27 First Half-Year / Second Quarter Results 2015 Sales and EBITDA margins by Business Area first half-year Half-year results Business Area / Segment: Sales EBITDA* EBITDA margin* CHF m % LC % of Group H1/15 H1/14 Care Chemicals Catalysis & Energy Natural Resources Plastics & Coatings Total continuing Sales in % of Group EBITDA* Plastics & Coatings 43% Care Chemicals 25% Natural Resources 21% Catalysis & Energy 11% Plastics & Coatings 38% Natural Resources 19% Care Chemicals 29% Catalysis & Energy 14% * before exceptional items

28 28 First Half-Year / Second Quarter Results 2015 Business Area performance first half-year Care Chemicals Catalysis & Energy Sales in CHF m EBITDA* in CHF m Sales in CHF m EBITDA* in CHF m H Change (LC) H H Change (LC) H H Change (LC) H H Change (LC) H % % % % 19.0% 15.7% 21.3% % Natural Resources Plastics & Coatings Sales in CHF m EBITDA* in CHF m Sales in CHF m EBITDA* in CHF m H Change (LC) H H Change (LC) H H Change (LC) H H Change (LC) H % % +12% % % % 14.1% % * before exceptional items

29 29 First Half-Year / Second Quarter Results 2015 Debt maturity profile as of 30 June 2015 Liquidity Maturities of Financial Debt in CHF million Derivatives Uncommitted & other loans / NWC facilities Long-term loans Certificate of Indebtedness EUR Bond CHF Bond Cash* Cash* * Including near cash assets and financial instruments with positive fair values reported under other current assets.

30 30 First Half-Year / Second Quarter Results 2015 Sales and cost structure* Global sales distribution in % Global cost distribution in % CHF 0% JPY 3% Emerging Markets 18% EUR 38% CHF 4% JPY 3% Emerging Markets 16% EUR 42% USD 41% USD 35% *These distributions represent an approximation to total cash in- and out-flows and are closely linked to transaction exposures for FY 2014; Including discontinued operations

31 31 First Half-Year / Second Quarter Results 2015 Top 20 chemicals in percentage of total raw material costs* Approx. 45 chemicals account for 50% of material costs Top 5 Chemicals 1 Ethylene 2 Ethylene oxide 3 Propylene glycol 4 Polyethylene 5 Titanium dioxide Top 6-20 Chemicals 6 Propylene oxide 7 Phthalocyanine copper salt 8 Palladium 9 Tallow fatty acid 10 Acetic acid 11 Naphtha 12 Sodium hydroxide 13 Carbon Black 14 Dichlorobenzidine dihydrochloride 15 Bentonite 16 Alkyl benzene 17 Fatty alcohol 18 Ferric oxide 19 Polypropylene 20 Alkyl dimethyl amines 19% 11% Top 5 Top 6-20 Other 70% *As of 31 December 2014

32 32 First Half-Year / Second Quarter Results 2015 Calendar of upcoming corporate events August 2015 IR Roundtable in San Francisco 29 October February 2016 Nine Months 2015 Results Conference Call Full-Year 2015 Results Conference Call 21 April 2016 Annual General Meeting

33 33 First Half-Year / Second Quarter Results 2015 IR contacts Dr. Siegfried Schwirzer Senior Investor Relations Officer Phone Mobile siegfried.schwirzer@clariant.com Marco Ferraro Investor Relations Officer Phone Mobile marco.ferraro@clariant.com Edith Schwab Phone edith.schwab@clariant.com Mirjam Grieder Phone mirjam.grieder@clariant.com

34 34 First Half-Year / Second Quarter Results 2015 Our ipad App Download it here:

35 35 First Half-Year / Second Quarter Results 2015 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 apply 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.