Swiss Equities Conference

Transcription

1 Swiss Equities Conference Helvea Baader BAD RAGAZ, 16 JANUARY 2015

2 2 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Nine Months 2014 improved profitability and above market growth 6% sales growth in local currencies in the first nine months - Higher volumes resulted in sales growth significantly above-average market growth - All four Business Areas contributed to growth - Uneven growth patterns across regions / businesses, driven by regional- and segment-specific factors Progress in profitability despite volatile markets & adverse currency development - Margin improvement based on increasing contribution from higher-margin businesses to group results - Progress despite a gradual softening of the European economy during the year - Unfavorable currency developments weighed on results but started to ease during the third quarter Cash flow generation still unsatisfactory but improving in Q3 - Seasonal cash outflow during the first six months reversed in the third quarter - Strict cash flow focused management with an emphasis on inventory management for the remainder of the year

3 3 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Sales growth driven by volumes headwinds from FX in the first nine months all figures continuing operations Sales mix 2014 Volume 5% Price 1% Acq./Div. 0% Germany* 617 / 5% Sales growth in local currencies North America 720 / +3% Asia / Pacific / +11% China 383 / +19% Currency -6% Organic sales growth in LC driven by 5% higher volumes and 1% higher prices Double-digit sales growth in the emerging markets China, MEA and LATAM; solid growth in North America Europe further softened; Germany lower due to elimination of lower margin products in Care Chemicals Europe* / -1% Middle East & Africa 351 / +13% Latin America 707 / +17% Sales 2014: CHF m Emerging Markets Mature Markets Brazil 302 / +5% * excluding impact from Care Chemicals portfolio measures: Europe +0% / Germany -2%

4 4 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Good sales growth and robust margins across the business portfolio in the first nine months LC sales growth EBITDA* margin Care Chemicals Industrial Applications and Consumer Care achieved solid growth, the latter driven by Crop Solutions and Personal Care. Sales growth impacted by reduction of the exposure to lower margin products. +1% 16.0% Catalysis & Energy Double-digit sales growth in Syngas catalysts. Petrochemicals business captured opportunities from beneficial refill cycle +10% 22.8% Natural Resources Oil & Mining Services business achieved double-digit sales growth, underlying growth in Functional Minerals continued to be sound. +10% 14.5% Plastics & Coatings All three businesses Pigments, Masterbatches, and Additives and all regions contributed to growth. Unfavorable mix effect linked to opportunistic production of lower-margin products +7% 14.4% * before exceptional items.

5 5 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Robust EBITDA *, cash generation picked up in Q3 all figures continuing operations EBITDA* increased, EBITDA* margin virtually stable year-on-year EBITDA* increased as a result of higher volumes and a higher gross margin Improved or stable EBITDA* in all four Business Areas Group EBITDA* margin slightly lower: One-time effect in Natural Resources in the previous year, unfavorable mix effect in Plastics & Coatings EBITDA* CHF m EBITDA* margin % 13.8% Positive cash flow from operations, below previous-year level NWC/sales ratio at 22.3% compared to 21.5% at the end of Q Committed to further improve cash generation in the fourth quarter Operating cash flow CHF m Net debt at CHF million compared to CHF million at year-end 2013 Net debt expected to reach approximately CHF 1.3 billion at year-end 2014 Expected net debt reduction through operating cash flow generation and proceeds from the land sale in India Net debt CHF m * before exceptional items Q Q3 2013

6 6 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Outlook 2014 heterogeneous macroeconomic environment to persist Macroeconomic view Optimism in the market concerning the further path of the global economy has deteriorated in the last few months, in particular with regards to the outlook for Europe. Clariant expects: Uneven global economic development between the regions Favorable but mixed emerging market economies, with volatile currencies Moderate growth to continue in the United States Europe expected to remain flat at best

7 7 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Outlook 2014 further progress in sales and profitability 2014 Clariant will further progress in sales and profitability Clariant will focus on profitably growing the four Business Areas, on cost efficiency and on innovation For full-year 2014, Clariant expects around mid single-digit sales growth in local currencies and an EBITDA margin before exceptional items above full-year and beyond Clariant confirms its target of reaching the top tier of the specialty chemicals industry by This corresponds to an EBITDA margin before exceptional items range of 16% to 19% and a return on invested capital (ROIC) above peer group average

8 Back-up slides

9 9 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Key financials nine months Nine months results CHF m % of sales CHF m % of sales Sales % % Local currency growth (LC) 6% - Organic growth rate* 6% - Acquisitions/Divestments 0% Currencies - 6% Gross profit % % EBITDA before exceptionals % % EBITDA % % Operating income before exceptionals % % Operating income % % Net result from continuing operations % % Net income / loss Operating cash flow Sales from discontinued operations Net result from discontinued operations * 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

10 10 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Cash flow nine months Nine months results CHF m CHF m Net income / loss Depreciation, amortization and impairment Other Payments for restructuring 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

11 11 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Financial result nine months Nine months results CHF m CHF m Interest income 9 8 Other financial income 2 2 Total financial income Interest expenses thereof: interest on non-current provisions -3-3 thereof: interest on post-employment benefit obligations Other financial expenses -5-7 Total financial expenses Currency result, net Total financial costs thereof reported under discontinued operations 2 25 Total financial costs (continuing operations)

12 12 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Sales and EBITDA margins by Business Area nine months Nine months results Business Area Sales EBITDA* EBITDA margin* CHF m % LC % of Group /14 /13 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 40% Care Chemicals 25% Catalysis & Energy 16% Natural Resources 19% * before exceptional items

13 13 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Business Area performance nine months Care Chemicals Catalysis & Energy Sales in CHF m EBITDA bef. exc. in CHF m Sales in CHF m EBITDA bef. exc. in CHF m 2014 Change (LC) Change (LC) Change (LC) Change (LC) % % % % 16.0% 16.4% 22.8% % Natural Resources Plastics & Coatings Sales in CHF m EBITDA bef. exc. in CHF m Sales in CHF m EBITDA bef. exc. in CHF m 2014 Change (LC) Change (LC) Change (LC) Change (LC) % % +23% % % % 14.4% %

14 14 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Debt maturity profile as of 30 September 2014 Liquidity Headroom Maturities of Financial Debt 4 12 in CHF million Derivatives Uncommitted short term loans & other liabilities Long term loans Certificate of indebtedness EUR Bond 500 CHF Bond Cash* Cash* * * Cash incl. near cash assets and financial instruments with positive fair values reported under other current assets. On 17 October 2014, Clariant issued a CHF domestic bond of CHF 160 m with a coupon of percent p.a. and a tenor of 10 years

15 15 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Sales and cost structure* Global sales distribution in % Global cost distribution in % CHF 0% JPY 3% Emerging markets 18% EUR 42% CHF 4% JPY 2% Emerging markets 15% EUR 48% USD 37% USD 31% * These distributions represent an approximation to total cash in- and out-flows and are closely linked to transaction exposures for Including discontinued operations.

16 16 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Top 20 products in percentage of total raw material costs* Approx. 150 products account for 50% of material costs Products 1 Ethylene 2 Ethylene oxide 3 Propyleneglycol 4 Polyethylene 5 Propylene oxide 6 Titanium dioxide 7 29H,31H-Phthalocyanine copper salt 8 Tallow fatty acid 9 Naphtha, solvent, petroleum, heavy aroma 10 Aluminum hydroxide oxide 11 Carbon black 12 Acetic Acid 13 Alkyl-(C10-C14)-benzene, linear 14 Fatty alcohol-(c18-c22) 15 3,3'-Dichlorobenzidine dihydrochloride 16 Sodium hydroxide 17 Tetraphosphoric acid 18 Palladium 19 Wax, montan 20 Polypropylene 23 % 11% 66 % Top 5 Top 6-20 Others * As of 31 December 2013; former SC: some countries only partially included in 2013.

17 17 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Regional distribution of Clariant s shareholder base as of October 2014 Switzerland 34% Germany 19% United Kingdom 8% Rest of Europe 9% Europe Total 70% Americas Total 14% Rest of the World 2% Rest of the World 2% Unidentified Shareholdings 14% Americas 14% Rest of Europe 9% United Kingdom 8% Switzerland 34% Germany 19% Unidentified Shareholdings 14%

18 18 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Improved ROIC in relation to peers ROIC 2013 by peer (in %) Clariant ROIC 2013: 9.5% 2013 Median 9.5% Croda EMS Lyondell Basell Honeywell Albemarle ICL Celanese Eastman Ferro Sherwin Williams PPG Valspar HB Fuller DuPont Johnson Matthey Cytec BASF Symrise PolyOne Evonik Altana Axiall Umicore West Lake Chem Akzo Clariant LG Chemicals Rockwood Omnova AZ Electronics Braskem Shin-Etsu Dow Borealis DSM Huntsman Schulman Solvay Ashland Lonza Chemtura Cabot H & R DIC Kemira Wacker Kraton Lanxess Mitsubishi Mitsui , Source: Annual Reports; Corporate Controlling

19 19 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Historic EBITDA* Development 20% 18% 16% 14% 12% 12.7% 13.2% 13.5% 14.1% 10% 8% 6% 9.7% 7.5% * before exceptional items, as reported

20 20 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Calendar of upcoming corporate events 18 February 2015 Full-Year 2014 Results 31 March 2015 Annual General Meeting 29 April 2015 First Quarter 2015 Results 30 July 2014 First Half 2015 Results 29 October 2015 Nine Months 2015 Results

21 21 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 IR contacts Dr. Siegfried Schwirzer Deputy Head Investor Relations Phone +41 (0) Mobile +41 (0) siegfried.schwirzer@clariant.com Marco Ferraro Investor Relations Officer Phone +41 (0) Mobile +41 (0) marco.ferraro@clariant.com Edith Schwab Phone +41 (0) edith.schwab@clariant.com Mirjam Grieder Phone +41 (0) mirjam.grieder@clariant.com

22 22 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 2015 Our Publications ipad App: Factbook:

23 23 Swiss Equities Conference - HelveaBaader / Bad Ragaz, 16 Jan 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.