Financial Review FULL YEAR / FOURTH QUARTER

Transcription

1 Financial Review FULL YEAR / FOURTH QUARTER CLARIANT INTERNATIONAL LTD Rothausstrasse Muttenz Switzerland

2 Page 1 of 19 Key Financial Group Figures Continuing operations Full Year Fourth Quarter CHF m 2013 % of sales CHF m % of sales CHF m 2013 % of sales CHF m % of sales Sales Local currency growth (LC): 4% 8% Organic growth 1 4% 8% Acquisitions/divestitures 0% 0% Currencies 3% 4% Gross profit EBITDA before exceptional items* EBITDA* Operating income before exceptional items* Operating income Net result from continuing operations Net income total Operating cash flow Discontinued operations: Sales Net result from discontinued operations Other key figures total Group: Net debt Equity (including non-controlling interests) Gearing 54% 67% Return on invested capital (ROIC)** 9.5% 9.4% Number of employees Throughout this statement the term organic growth is used to mean volume and price effects excluding the impacts of changes in FX rates and acquisitions/divestitures. 2 Including discontinued operations. 3 Restated for the effect of IAS19 (revised). See note 3. * See Definitions of Terms of Financial Measurement on page 4. ** Clariant calculates ROIC by dividing NOPLAT before exceptional items by the average net capital employed. NOPLAT is calculated by taking the operating income before exceptional items adjusted by the expected tax rate. Net capital employed also considers operating cash and capitalized operating leases. ROIC is calculated on continuing operations basis.

3 Page 2 of 19 FINANCIAL DISCUSSION FOURTH QUARTER Economic Environment During the fourth quarter economic growth in the advanced economies continued to improve moderately. In the eurozone, the economy stabilized, especially in southern Europe. In the United States, the improvement in economic growth rates was stimulated by the continuing accommodative monetary policy. GDP growth in the emerging countries was at a higher pace than in the advanced economies. However, there are downside risks due to potential fiscal and monetary actions in Asia. In Latin America, Brazil experienced a slower growth and increased inflationary pressure. In the low global GDP growth environment, volatility in commodity prices remained relatively low. The intervention of the Swiss National Bank to maintain an exchange rate floor of CHF 1.20 per euro has remained in place since the third quarter of The value of the euro has remained practically unchanged against the Swiss franc during the fourth quarter of The Swiss currency has slightly appreciated against the US dollar, Chinese yuan, Indian rupee and Brazilian real during the fourth quarter of Compared to the fourth quarter of 2012 the euro appreciated while the Brazilian real, Indian rupee and Japanese yen strongly depreciated; the value of the Chinese yuan remained stable against the Swiss franc. Sales and Operating Results Fourth Quarter 2013 Sales from continuing operations increased by 8% in local currency and 4% in Swiss francs compared to the fourth quarter of the previous year. Organic growth (excluding sales effect from the acquired businesses) was 8% compared with the last three months of the previous year. Compared with the third quarter 2013, sales were up 10% in local currency and 8% in Swiss francs, following the normal pattern of strength in the fourth quarter. Most Business Areas managed to increase prices compared to the same period a year earlier despite difficult trading conditions. The gross margin in the fourth quarter of 2013 was 28.2% and therefore below the 29.3% recorded in the prior-year period. Positive effects from higher volumes and a favorable development of sales prices and raw materials were offset by adverse currency developments. Research and development costs of CHF 54 million in the fourth quarter of 2013 were slightly above the level recorded in the same quarter of the previous year (CHF 52 million). The variance is related to increased efforts in central Biotechnology R&D projects. Income from associates and joint ventures of CHF 23 million in the fourth quarter of 2013 was above the level of CHF 7 million in the prior-year period. Restructuring, impairment and transaction related costs in the amount of CHF 64 million reflect charges for the global Water Treatment Business line, costs related to closure of the Energy Storage site in St. Bruno, Canada and various smaller measures aiming at streamlining the operational processes within the Group. The net financial result in the fourth quarter of 2013 improved to CHF -35 million from CHF -51 million in the prior-year period. The repayment of the EUR 600 million bond as well as the use of Clariant s issuer call option within the CHF 300 million convertible bond were the main causes for a significant decrease in finance cost. In addition, a further reduction in financial debt had a positive impact on the financial result. Tax income of CHF 27 million was recorded in the fourth quarter of 2013 compared to tax income of CHF 33 million in the previous-year period. This effect is mainly attributable to the capitalization and the utilization of tax losses resulting from an improvement of business operations and to one-time positive tax impacts. As a result, the Group achieved a low tax rate from continuing operations. Net result from continuing operations amounted to CHF 85 million in the fourth quarter of 2013, which is on par with the level reported in the same period of Net result from discontinued operations of CHF -5 million was recorded in the fourth quarter of The net loss reflects the results of the Detergents & Intermediates, the Leather Services businesses and the associated disposal costs. Selling, general and administrative costs accounted for 16.1% of sales, this ratio remained flat compared to the fourth quarter of 2012.

4 Page 3 of 19 Balance Sheet Key Figures December Total assets decreased to CHF billion as of 31 December 2013 from CHF billion at the end of 2012 mainly due to the decrease of assets held for sale and the decrease in cash and cash equivalents. Near cash assets consist of short-term cash deposits with a duration of more than three months. Cash and cash equivalents decreased to CHF 770 million as of 31 December 2013 from CHF billion at the end of 2012 mainly as result of the repayment of a EUR 600 million straight euro-bond. Assets held for sale decreased to CHF 451 million as of 31 December 2013 from CHF billion at the end of This was predominantly the result of the disposal of the businesses Textile Chemicals, Paper Specialties and Emulsions at the end of September The remaining balance mainly consists of the assets pertaining to the businesses Leather Services and Detergents and Intermediates, reported under 'discontinued operations' since end of Non-current financial debts decreased to CHF billion as of 31 December 2013 from billion as of Current financial debt decreased to CHF 589 million from CHF billion respectively. This was mainly due to the early conversion of the CHF 300 million convertible bond and to the repayment of the EUR 600 million straight euro-bond at maturity. Equity increased to CHF billion as of 31 December 2013, from CHF billion (restated see p.8) at the end of 2012, mainly due to the conversion of the convertible bond which entailed an increase of the share capital of CHF 134 million and of the other reserves of CHF 150 million. The remeasurements and the net result of the year generated a further increase of equity by CHF 96 and CHF 5 million respectively. The distribution from capital contribution reserves reduced the equity by CHF 105 million and the currency translation differences by CHF 160 million. Gearing, which reflects net financial debt in relation to equity including non-controlling interests, decreased from 67% at the end of 2012 to 54% at the end of Cash Flow Cash flow from operating activities before changes in working capital and provisions amounted to CHF 134 million for the fourth quarter of 2013, compared with CHF 141 million for the same period one year earlier. The operating cash flow before changes in working capital and provisions for 2013 was CHF 595 million compared with CHF 545 million for Working capital decreased by CHF 127 million during the fourth quarter of 2013 compared with a decrease of CHF 143 million for the same period in In 2013, working capital increased by CHF 294 million, compared with an increase of CHF 77 million in Cash flow from operating activities was a positive CHF 261 million for the fourth quarter of 2013, compared with a positive CHF 284 million for the same period one year earlier. For 2013, cash flow from operating activities was a positive CHF 301 million compared with a positive CHF 468 million for Capital expenditures (PPE) were CHF 85 million for the fourth quarter of 2013, compared with CHF 124 million for the same period one year earlier. Proceeds from the disposal of discontinued operations amounted to CHF 293 million in 2013 (see p. 10). Financing activities of 2013 mainly include proceeds from financial debt of CHF 188 million and repayments of financial debts in the amount of CHF 913 million and the related interests paid and received. The distribution from capital contribution reserves amounting to CHF 105 million is also part of the financing activities. Net debt decreased over the reporting period to CHF billion as of 31 December 2013, from CHF billion at the end of This figure includes current and non-current financial debts, cash and cash equivalents, near cash assets and financial instruments with positive fair values. 1 See note 3.

5 Page 4 of 19 DEFINITION OF TERMS OF FINANCIAL MEASUREMENTS (UNAUDITED) The following financial measurements are supplementary financial indicators. They should be considered in addition to, not as a substitute for, operating income, net income, operating cash flow and other measures of financial performance and liquidity reported in accordance with International Financial Reporting Standards (IFRS). EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is calculated as operating income plus depreciation of PPE, plus impairment and amortization of intangible assets, and can be reconciled from the Condensed Financial Statements as follows: EBITDA (Continuing) Full Year Fourth Quarter CHF m * * Operating income Depreciation of PPE Impairment Amortization of intangible assets EBITDA EBITDA before exceptional items is calculated as EBITDA plus expenses for restructuring, impairment and transaction related costs plus additional charge to COGS in connection with the acquisition and integration of former Süd-Chemie less impairment and gain/ loss on disposals. EBITDA before exceptional items (Continuing) Full Year Fourth Quarter CHF m * * EBITDA Restructuring, impairment and transaction related costs Impairment (reported under Restructuring and impairment) Additional charge to COGS in connection with the acquisition and integration of former Süd-Chemie 5 - Gain from the disposal of activities not qualifying as discontinued operations EBITDA before exceptional items Operating income before exceptional items is calculated as operating income plus restructuring, impairment and transaction related costs plus additional charge to COGS in connection with the acquisition and integration of former Süd-Chemie less gain/loss on disposals. Operating income before exceptional items (Continuing) Full Year Fourth Quarter CHF m * * Operating income Restructuring, impairment and transaction related costs Additional charge to COGS in connection with the acquisition and integration of former Süd-Chemie 5 - Gain from the disposal of activities not qualifying as discontinued operations Operating income before exceptional items Net debt is the sum of current and non-current financial debt less cash and cash equivalents, near cash assets and financial instruments with positive fair values. Net debt CHF m Non-current financial debt Current financial debt Cash and cash equivalents Near cash assets Financial instruments with positive fair values 2 20 Net debt * Restated for the effect of IAS19 (revised). See note 3.

6 Page 5 of 19 CONDENSED FINANCIAL STATEMENTS OF THE CLARIANT GROUP Consolidated balance sheets ASSETS ** ** CHF m % CHF m % CHF m % Non-current assets Property, plant and equipment Intangible assets Investments in associates and joint ventures Financial assets Prepaid pension assets 43 Deferred income tax assets Total non-current assets Current assets Inventories Trade receivables Other current assets* Current income tax receivables Near cash assets Cash and cash equivalents Total current assets Assets held for sale Total assets EQUITY AND LIABILITIES ** ** CHF m % CHF m % CHF m % Equity Share capital Treasury shares (par value) Other reserves Retained earnings Total capital and reserves attributable to Clariant shareholders Non-controlling interests Total equity Liabilities Non-current liabilities Financial debts Deferred income tax liabilities Retirement benefit obligations Provision for non-current liabilities Total non-current liabilities Current liabilities Trade and other payables Financial debts Current income tax liabilities Provision for current liabilities Total current liabilities Liabilities directly associated with assets held for sale Total liabilities Total equity and liabilities * Including financial instruments with positive fair values of CHF 2 million (CHF 20 million as of 31 December 2012). ** Restated for the effect of IAS19 (revised). See note 3.

7 Page 6 of 19 Consolidated income statements Full Year Fourth Quarter (unaudited) CHF m % CHF m 2012* % CHF m % CHF m 2012* % Sales Costs of goods sold Gross profit Selling, general and administrative costs Research and development Income from associates and joint ventures Gain from the disposal of activities not qualifying as discontinued operations Restructuring, impairment and transaction related costs Operating income Finance income Finance costs Income before taxes Taxes Net result from continuing operations Attributable to: Shareholders of Clariant Ltd Non-controlling interests Net result from discontinued operations Attributable to: Shareholders of Clariant Ltd Non-controlling interests Net income / loss Attributable to: Shareholders of Clariant Ltd Non-controlling interests Basic earnings per share attributable to the shareholders of Clariant Ltd (CHF/share): Continuing operations Discontinued operations Total Diluted earnings per share attributable to the shareholders of Clariant Ltd (CHF/share): Continuing operations Discontinued operations Total * Restated for the effect of IAS19 (revised). See note 3.

8 Page 7 of 19 Consolidated statements of comprehensive income Full Year Fourth Quarter (unaudited) CHF m * * Net income Other comprehensive income: Remeasurements: Actuarial gain/loss on retirement benefit obligations Return on retirement benefit plan assets, excluding amount included in interest expense Deferred tax on remeasurements Total items that will not be reclassified to profit and loss Net investment hedge Cash flow hedges 3 Currency translation differences Share of other comprehensive income of associates and joint ventures 11 2 Effect of the reclassification of foreign exchange differences on previously held net investments in foreign entities Total items that may be reclassified subsequently to profit and loss Other comprehensive income for the period, net of tax Total comprehensive income for the period Attributable to: Shareholders of Clariant Ltd Non-controlling interests Total comprehensive income for the period Total comprehensive income attributable to shareholders of Clariant Ltd arising from: Continuing operations Discontinued operations Total comprehensive income attributable to shareholders of Clariant Ltd * Restated for the effect of IAS19 (revised). See note 3.

9 Page 8 of 19 Consolidated statement of changes in equity Full Year Other reserves CHF m Total share capital Treasury shares (par value) Share Cumulative premium translation reserves reserves Total other reserves Retained Total earnings attributable to equity holders Noncontrolling interests Total equity Balance 1 January 2012* Net income Net investment hedge Remeasurements: Actuarial gain/loss on retirement benefit obligations Return on retirement benefit plan assets, excluding amount included in interest expense Deferred tax on remeasurements Currency translation differences Effect of the reclassification of foreign exchange differences on previously held net investments in foreign entities Total comprehensive income for the period* Reduction of share capital Dividends to non-controlling interests Acquisition of non-controlling interests Employee share & option scheme: Effect of employee services Treasury share transactions Balance 31 December 2012* Net income / loss Net investment hedge Remeasurements: Actuarial gain/loss on retirement benefit obligations Return on retirement benefit plan assets, excluding amount included in interest expense Deferred tax on remeasurements Share of other comprehensive income of associates and joint ventures Currency translation differences Effect of the reclassification of foreign exchange differences on previously held net investments in foreign entities Total comprehensive income for the period Increase of share capital Dividends to non-controlling interests Acquisition of non-controlling interests Distributions Change in non-controlling interest as a result of the disposals Employee share & option scheme: Effect of employee services Treasury share transactions Balance 31 December * Restated for the effect of IAS19 (revised). See note 3.

10 Page 9 of 19 Consolidated statements of cash flows Full Year Fourth Quarter (unaudited) CHF m * 2013** 2012* Net income Adjustment for: Depreciation of property, plant and equipment (PPE) Impairment and reversal of impairment Amortization of intangible assets Impairment of working capital Income from associates and joint ventures Tax expense Net financial income and costs Gain from the disposal of activities not qualifying as discontinued operations 19 4 Loss from the disposal of discontinued operations Other non-cash items Total reversal of non-cash items Dividends received from associates and joint ventures Income taxes paid Payments for restructuring Cash flow before changes in working capital and provisions Changes in inventories Changes in trade receivables Changes in trade payables Changes in other current assets and liabilities Changes in provisions (excluding payments for restructuring) Cash flow from operating activities Investments in PPE Investments in financial assets, associates and joint ventures Investments in intangible assets Changes in current financial assets and near cash assets Sale of PPE and intangible assets Acquisition of companies, businesses and participations 18 5 Proceeds from the disposal of discontinued operations Proceeds from the disposal of activities not qualifying as discontinued operations 1 5 Cash flow from investing activities Reduction of share capital to shareholders of Clariant Ltd 84 Purchase of treasury shares Sale of treasury shares Proceeds from financial debts Repayments of financial debts Acquisition of non-controlling interests Distributions to shareholders of Clariant Ltd 105 Dividends paid to non-controlling interests Interest paid Interest received Cash flow from financing activities Currency translation effect on cash and cash equivalents Net change in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period * Restated for the effect of IAS19 (revised). See note 3. ** Restated as a result of the reclassification of CHF -114 million impact of receivables arising from the disposal of discontinued operations from investing activities to operating activities.

11 Page 10 of 19 NOTES TO THE CONDENSED FINANCIAL STATEMENTS 1. Basis of preparation These financial statements are the condensed consolidated financial statements (hereafter the consolidated financial statements ) of Clariant Ltd, a company registered in Switzerland, and its subsidiaries (hereafter the Group ) for the twelve-month period ended on 31 December The condensed consolidated financial statements, which do not contain all the information that International Financial Reporting Standards (IFRS) would require for a full set of financial statements, have been prepared in accordance with IFRS and with the accounting policies set out in the Clariant Financial Report for the year ended The Clariant Group adopted for the first time in 2013 the revised IAS 19, Employee benefits. million CHF Total cash proceeds received as of 31 December Outstanding amounts 45 Equity investment 5 Total consideration for the sale 364 Net asset sold including disposal related expenses and -671 cumulated amounts in equity pertaining to disposal group which were recycled through income statement upon disposal Loss on the disposal of discontinued operations -307 before taxes Taxes (current and deferred) 20 After tax loss on disposal -287 These consolidated financial statements were approved on 17 February 2014 by the Board of Directors. The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities, and disclosure of contingent liabilities at the date of the financial statements. If, in the future, such estimates and assumptions, which are based on management s best judgment at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. 2. Acquisitions and disposal activities 2.1 Disposal of Textile Chemicals, Paper Specialties and Emulsions As part of its profitable growth strategy, Clariant started a project to reposition its portfolio of business activities in In December 2012 a contract was signed with the US-based SK Capital to sell the businesses Textile Chemicals, Paper Specialties and Emulsions. As of 30 September, Clariant closed the sale of these three Business Units to SK Capital. The net assets pertaining to the disposed Business Units, reported as assets and liabilities pertaining to assets held for sale since end of December 2012, have been deconsolidated as of closing date. The following table shows the calculation, as per end of December 2013, of the result realized by Clariant on the sale of the Business Units Textile Chemicals, Paper Specialties and Emulsions. Cash flow from disposal: Total cash proceeds received as of 31 December Less cash transferred -21 Net proceeds from disposal 293 In the income statement, the result of these Business Units is reported under discontinued operations. 2.2 Discontinued operations for Leather Services and Detergent & Intermediates businesses On 14 October 2013, Clariant signed an agreement to divest its Detergents and Intermediates business to Luxembourgbased International Chemical Investors Group (ICIG). The total consideration of the sale amounts to CHF 58 million. The transaction was closed effective on 1 January On 30 October 2013, Clariant announced that it plans to sell its Leather Services business to Stahl. Stahl Holdings B.V., majorityowned by Wendel Group, is a Dutch company. In the proposed transaction, Clariant would receive 23% of the shares of Stahl and a cash payment of approximately CHF 85 million in exchange for the sale of its business to Stahl. Subject to the necessary regulatory approval and employees consultations, the transaction could be finalized in Wendel would remain the principal shareholder of Stahl with approximately 70% of Stahl s capital. The assets and liabilities pertaining to discontinued businesses of Detergents and Intermediates and Leather Services have been reported as assets held for sale and liabilities directly associated with assets held for sale since end of December 2012 and totaled CHF 288 million as at 31 December 2013, down from

12 Page 11 of 19 CHF 372 million at the end of 2012 mainly due to the CHF 80 million impairment recorded on the Detergents and Intermediates business to align the value of the assets and liabilities pertaining to that business with the selling price agreed with ICIG. The result from the discontinued operations for 2013 amounted to negative CHF 318 million. This is mainly due to the loss realized on the disposal of the Business Units Textile Chemicals, Paper Specialties and Emulsions and to the impairment recorded on the Business Line Detergents and Intermediates partially offset by the result of the operations of the five businesses reported as discontinued operations. technology and customers relationships, Clariant recorded in its income statement a negative goodwill of CHF 15 million. 2.5 Acquisition of Organic Pigment Business On 27 September 2013, Clariant acquired the Organic Pigment business of the China based Jiangsu Multicolor Fine Chemical Co., Ltd for a total preliminary consideration of CHF 24 million. Thereof CHF 18 million had been paid during the reporting period. The net assets acquired mainly consist of fixed assets, inventories, trade receivable and trade payables. 2.3 Joint Venture with Wilmar Based on preliminary valuations, a CHF 14 million goodwill was recorded at the end of December On 25 October 2012, Clariant had signed an agreement with Wilmar International Limited, a leading Asian agribusiness group, to establish a joint venture as a global platform for production and sales of amines and selected amine derivatives. The joint venture, headquartered in Singapore, was set up in the third quarter of 2013 when the relevant merger clearances were received. Clariant contributed its existing amines business to the joint venture, including trademarks, technology and customer relationships as well as the fixed assets related to a production plant in Germany and an initial level of inventory. The gain realized by Clariant on that transaction amounted to CHF 20 million coming from the fair value valuation of the contributed assets. 2.4 Acquisition of Gulf of Mexico Business from Champion Technologies Inc. Clariant signed an agreement with Ecolab Inc. to acquire the deep water Gulf of Mexico business of Champion Technologies Inc. The divestment of these assets by Ecolab was a prerequisite by the US Department of Justice for the approval of the acquisition of Champion Technologies by Ecolab Inc. In this context, Clariant entered into an agreement with Champion Technologies Inc. for the acquisition of its Gulf of Mexico business on 4 April Acquisition of a Masterbatch Business in India On 16 December 2013, Clariant announced its intention to acquire Plastichemix Industries, a masterbatch business in India. This acquisition is part of the Group s global strategy to explore business opportunities in masterbatch business focusing on emerging markets. The deal, valued at approximately CHF 20 million, is planned to be closed in the first quarter of Implementation of the revised IAS 19, Employee Benefits The Group has applied the IAS 19 (revised), starting 1 January 2013, with full retrospective application. This revised standard entails the elimination of the corridor approach: all actuarial gains and losses are recognized in the balance sheet immediately with a charge or credit to other comprehensive income, as they occur. Additionally, all past service costs are immediately recognized in the income statement when a plan is amended. Finally, interest costs and expected return on plan assets are replaced by a net interest amount that is calculated by applying the discount rate to the net of the defined benefit liability and the respective pension assets. The impacts of the implementation of the IAS 19 (revised), Employee Benefits (net of deferred tax) can be summarized as follows: Resulting from the difference between the purchase price and the fair value of the identifiable assets acquired, namely patent

13 Page 12 of 19 Decrease in equity Decrease in income million CHF As of 1 January As of 31 December The implementation of the IAS 19 (revised) resulted in the reversal of interest expense, return on plan assets and actuarial losses with a net impact on operating income of CHF 18 million. A recalculated net interest expense of CHF 31 million was charged to the financial result. Net of deferred tax, net income was reduced by CHF 10 million for Bond transactions 6.1 Early conversion of convertible bond and share capital increase On 6 February 2013, Clariant made use of its issuer call option within the CHF 300 million, 3% convertible bond By the end of March 2013, 100% of the bondholders had made use of their conversion rights. Consequently, registered shares have been issued in 2013 as a result of the conversion representing a share capital increase of CHF 134 million and an increase in reserves of CHF 150 million. 4. Changes in segment reporting Effective 1 January 2013, Clariant has regrouped its seven Business Units for external reporting purposes into four Business Areas (reportable segments): Care Chemicals (Business Unit ICS), Catalysis & Energy (BU Catalysts, Energy Storage business), Natural Resources (BU Oil & Mining Services, BU Functional Minerals), and Plastics & Coatings (BU Additives, BU Masterbatches, BU Pigments). In addition the Medical Specialties business has been reallocated from BU Functional Minerals to BU Masterbatches. Restatements for 2012 have been made accordingly. 5. Restructuring, impairment and transaction related costs For the full year 2013, the Clariant Group recorded restructuring expenses pertaining to its continuing operations, in the amount of CHF 64 million mainly related to projects in Europe and to the finalization of the integration of Süd-Chemie. Impairment expenses in the amount of CHF 43 million mainly pertain to ongoing site closures and the planned disposal of the Water Treatment business. Transaction related costs totaled CHF 16 million for 2013, mainly pertaining to integration and project costs for continuing operations. In total, restructuring, impairment and transaction related costs amounted to CHF 123 million for 2013, and CHF 134 million for the prior year. For the fourth quarter of 2013 and 2012, they amounted to CHF 64 million and CHF 52 million respectively. 6.2 Repayment of the straight euro-bond On 5 April 2013, the 4.375% straight euro-bond with a nominal value of EUR 600 million, which had been launched in 2006, reached maturity and was repaid. 7. Distribution from capital contribution reserves On 26 March 2013, the General Meeting approved a distribution of CHF 0.33 per registered share from capital contribution reserves. On 4 April 2013, a distribution totaling CHF 105 million was made to Clariant shareholders. 8. Events subsequent to the balance sheet date On 14 October 2013, Clariant signed an agreement with ICIG to divest its Detergents & Intermediates business for a total consideration of CHF 58 million. The sale became effective on 1 January The activities sold comprise sites mainly in Germany and France. Worldwide 660 employees were affected by the transaction. On 11 February 2014, Clariant announced the signing of an agreement to divest the Water Treatment business in Africa to AECI, domiciled in South Africa. The total consideration of the sale amounts of CHF 34 million in cash at closing. Closing is expected by the end of the second quarter of The transaction is subject to certain conditions precedent, as well as regulatory approvals. In 2013 the Water treatment business pertaining to the Business Area Natural Resources reported approximately CHF 41 million in sales. In total 210 employees in Africa are affected by the transaction.

14 Page 13 of Business Area figures Full Year Sales to 3rd parties EBITDA before exceptionals EBITDA CHF m % CHF % LC % CHF % LC % CHF % LC Care Chemicals Catalysis & Energy Natural Resources Plastics & Coatings Business Areas total Corporate Total Operating income before exceptionals Operating income Systematic depreciation of PPE CHF m % CHF % LC % CHF % LC Care Chemicals Catalysis & Energy Natural Resources Plastics & Coatings Business Areas total Corporate Total Fourth Quarter Sales to 3rd parties EBITDA before exceptionals EBITDA CHF m % CHF % LC % CHF % LC % CHF % LC Care Chemicals Catalysis & Energy Natural Resources Plastics & Coatings Business Areas total Corporate Total Operating income before exceptionals Operating income Systematic depreciation of PPE CHF m % CHF % LC % CHF % LC Care Chemicals Catalysis & Energy Natural Resources Plastics & Coatings Business Areas total Corporate Total

15 Page 14 of Business Area margins Full Year Sales to 3rd parties EBITDA before exceptionals EBITDA in % Care Chemicals Catalysis & Energy Natural Resources Plastics & Coatings Total Operating income Operating income before exceptionals in % Care Chemicals Catalysis & Energy Natural Resources Plastics & Coatings Total Fourth Quarter Sales to 3rd parties EBITDA before exceptionals EBITDA in % Care Chemicals Catalysis & Energy Natural Resources Plastics & Coatings Total Operating income Operating income before exceptionals in % Care Chemicals Catalysis & Energy Natural Resources Plastics & Coatings Total

16 Page 15 of Geographic information Sales Full Year Fourth Quarter CHF m 2013 % of sales 2012 % of sales CHF % LC % 2013 % of sales % of sales CHF % LC % EMEA of which Germany of which Switzerland of which MEA North America of which US Latin America of which Brazil Asia / Pacific of which China of which India Total Discontinued operations

17 Page 16 of Condensed earnings per share data Full Year Net income/loss attributable to shareholders of Clariant Ltd (CHF m) Continuing operations Discontinued operations Total Diluted net income/loss attributable to shareholders of Clariant Ltd (CHF m) Net income attributable to shareholders of Clariant Ltd Impact of assumed conversion of convertible bond on net income 14 Total adjusted net result Adjusted net result from continuing operations Adjusted net result from discontinued operations Total adjusted net result Shares Number of registered shares at 31 December Weighted average number of shares outstanding Adjustment for granted Clariant shares Adjustment for dilutive share options Adjustment for assumed conversion of the convertible bond, where dilutive Weighted average diluted number of shares outstanding Basic earnings per share attributable to shareholders of Clariant Ltd (CHF/share) Continuing operations Discontinued operations Total Diluted earnings per share attributable to shareholders of Clariant Ltd (CHF/share) Continuing operations Discontinued operations Total

18 Page 17 of Finance income and costs Finance income Full Year Fourth Quarter CHF m Interest income Other financial income Total finance income Finance costs CHF m Interest costs thereof effect of discounting of non-current provisions thereof interest component of pension provisions Other financial expenses Currency result, net Total finance costs thereof reported under discontinued operations Total finance costs continuing operations

19 Page 18 of Foreign exchange rates Rates used to translate the consolidated balance sheets (closing rate) Change % 1 USD EUR BRL CNY INR JPY Full Year Average sales-weighted rates used to translate the consolidated income Change % statements and consolidated statements of cash flows 1 USD EUR BRL CNY INR JPY

20 Page 19 of 19 CLARIANT WHAT IS PRECIOUS TO YOU? Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On December 31, 2013 the company employed a total workforce of 18,099. In the financial year 2013, Clariant recorded sales of CHF billion for its continuing businesses. Clariant s corporate strategy is based on four pillars: managing businesses for profitability, research & development and innovation, growth in emerging markets, and repositioning of the portfolio. The company reports in four business areas: Care Chemicals, Catalysis & Energy, Natural Resources, and Plastics & Coatings. Calendar of Corporate Events Your Clariant Contacts 24 March 2014 Annual General Meeting, Basel 30 April 2014 First Quarter 2014 Results 30 July 2014 Half Year 2014 Results 30 October 2014 Nine Months 2014 Results Investor Relations Fax Ulrich Steiner Tel Siegfried Schwirzer Tel Media Relations Fax Stefanie Nehlsen Tel Kai Rolker Tel Disclaimer This document 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 forwardlooking statements, which pertain 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.