Financial Review NINE MONTHS / THIRD QUARTER. 29 October Rothausstrasse Muttenz Switzerland CLARIANT INTERNATIONAL LTD

Transcription

1 Financial Review NINE MONTHS / THIRD QUARTER CLARIANT INTERNATIONAL LTD Rothausstrasse Muttenz Switzerland

2 Page 1 of 21 Key Financial Group Figures Continuing operations: Nine Months Third Quarter CHF m 2015 % of sales CHF m 2014 % of sales CHF m 2015 % of sales CHF m 2014 % of sales Sales Local currency growth (LC): 2% 2% Organic growth 1 2% 2% Acquisitions/divestitures 0% 0% Currencies 7% 8% Gross profit EBITDA before exceptional items* EBITDA* Operating income before exceptional items* Operating income Net result from continuing operations Basic earnings per share (CHF/share) Adjusted earnings per share (CHF/share)* Net income total Operating cash flow Discontinued operations: Sales 98 Net result from discontinued operations Other key figures total Group: Net debt Equity (including non-controlling interests) Gearing 56% 46% 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 Total Group, including discontinued operations * See Definitions of Terms of Financial Measurement on pages 5 and 6.

3 Page 2 of 21 FINANCIAL DISCUSSION THIRD QUARTER Economic Environment The growth rate of the global economy has slowed down in the third quarter of 2015 with deteriorating economic dynamics in most of the emerging economies. The US economy continued its healthy expansion reflected by increasing employment rates and increases in average wages. However, the strong US dollar and the less favorable development in the emerging markets are limiting the further potential for improved growth. The eurozone continued to register its slow recovery. Economic growth in China, although still higher than in the US and Europe, continued to feel the effects from increased excess capacities in housing and construction industries. The economies of Russia and Brazil were in recession. High inflation development especially in Venezuela and to a lesser extent in Argentina and Brazil had a negative influence on the main economies of Latin America. Crude oil prices and commodity prices continued their volatile development compared to the previous quarters. Compared to the end of the third quarter of 2014, the Swiss franc depreciated against the US dollar, while it appreciated strongly against the euro, the Brazilian real, the Japanese yen and, to a lesser extent, the Indian rupee and the Chinese yuan. Sales and Operating Results Third Quarter 2015 Sales from continuing operations increased by 2 % in local currency but decreased 6 % in Swiss francs, compared to the third quarter of the previous year. The gross margin in the third quarter of 2015 was 31.6 % compared to 28.8 % recorded in the prior-year period, benefitting from positive effects of slightly lower raw material costs, slight price increases and cost reclassifications to SG&A. These effects were partially offset by a negative currency effect. Selling, general and administrative costs accounted for 18.9 % of sales and were above the 17.5 % level of the previous year period. The variance is mainly due to reclassification of costs previously reported under cost of goods sold. Income from associates and joint ventures of CHF 15 million in the third quarter of 2015 is below the level of CHF 26 million in the prior-year period. Restructuring, impairment and transaction-related costs amounted to CHF 27 million, reflecting a goodwill impairment charge of CHF 7 million and costs related to streamlining and optimizing the service organization within the Group. Gain from disposals not qualifying as discontinuing operations of CHF 4 million mainly refers to booking adjustments related to the disposal of Energy Storage which took place in the first quarter of this year. Additionally a further payment from the disposal of the ASK participation was registered in the third quarter of The net financial result was CHF -54 million in the third quarter of The financial result before foreign currency impacts improved to CHF -28 million in the third quarter of 2015 from CHF -31 million in the third quarter of Changes in the debt profile, including the repayment of a EUR 267 million German Certificate of Indebtedness in October 2014 and the issuance of a EUR 300 million German Certificate of Indebtedness in April 2015, together with a one-time currency effect on the euro bond interests were the main drivers for the improvement in financial expenses. The deviation to the prior-year quarter in the net currency result is mainly driven by the stronger euro and weaker US dollar against the Swiss franc development during Q compared with Q as well as by high inflation accounting for the Venezuelan entity. Tax expense of CHF 6 million for the continuing business was incurred compared to a tax expense of CHF 33 million in Q The tax expense is extraordinarily low due to positive onetime events. Net result from continuing operations amounted to CHF 60 million in the third quarter of 2015, which was above the CHF 58 million net result reported in the same period of Research and development costs of CHF 51 million in the third quarter of 2015 were below the level recorded in the same quarter of the previous year (CHF 55 million). Currency translation effects offset the slight increase in local currency terms. Net result from discontinued operations was CHF 8 million in the third quarter of 2015 due to closing account adjustments related to the disposal of the Textile, Paper and Emulsions Business in 2013.

4 Page 3 of 21 Balance Sheet Key Figures September 2015 Total assets decreased to CHF billion as of 30 September 2015 from CHF billion at the end of 2014 mainly due to the appreciation of the Swiss franc against the euro. This occurred following the announcement made by the Swiss National Bank on 15 January 2015 to discontinue the exchange rate floor of 1.20 Swiss franc per euro. Investments in associates and joint ventures decreased to CHF 566 million from CHF 635 million mainly due to the depreciation of the euro against the Swiss franc. Near-cash assets increased to CHF 364 million from CHF 180 million. They include short-term deposits with an original maturity between 90 and 365 days. Assets held for sale sharply decreased at the end of September 2015 compared with end of December 2014 due to the sale of the Energy Storage activities in February Non-current financial debts increased to CHF billion at the end of September 2015 from CHF million at the end of December 2014, and current financial debts increased to CHF 635 million at the end of September 2015 from CHF 430 million at the end of December The increase in non-current financial debts and in current financial debts is mainly due to combined effects of the new Certificates of Indebtedness totaling EUR 300 million launched in April 2015 with a term of 5 years (EUR 150 million) and 8 years (EUR 150 million) respectively, and to the reclassification to current financial debts of Certificates of Indebtedness totaling EUR 123 million maturing in April 2016 offsetting the favorable effect of the euro/ Swiss franc exchange rate on the EUR 500 million straight bond maturing in January Equity decreased to CHF billion at the end of September 2015 from CHF billion at the end of This was due to the negative currency translation differences amounting to CHF 375 million mainly associated with change in the euro/swiss franc exchange rate, to a distribution from capital contribution reserves of CHF 129 million and to CHF 31 million dividends to non-controlling interests. This was also due to the combined effect of actuarial losses on retirement benefit obligations and a positive return on pension plan assets amounting to a negative CHF 15 million, net of deferred tax. The positive impact of net investment hedges amounting to CHF 59 million, the net profit for the period amounting to CHF 211 million, treasury shares transactions amounting to CHF 33 million and the effects of employee services amounting to CHF 11 million partially offset the negative effects on equity as of end of September Net debt increased to CHF billion at the end of September 2015, 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. Gearing, which reflects net financial debt in relation to equity, including non-controlling interests, increased to 56 % at the end of September 2015, from 46 % at the end of December 2014.

5 Page 4 of 21 Cash Flow Cash flow from operating activities before changes in working capital and provisions amounted to CHF 172 million for the third quarter of 2015, compared to CHF 157 million for the third quarter of the previous year. The cash flow from operating activities before changes in working capital and provisions for the first nine months of 2015 was CHF 469 million compared to CHF 483 million for the first nine months of Working capital increased by CHF 41 million in the third quarter of 2015, compared to an increase of CHF 31 million during the third quarter of In the first nine months of 2015, working capital increased by CHF 273 million, compared with an increase of CHF 470 million in the first nine months of Cash flow from operating activities was a positive CHF 131 million for the third quarter of 2015, compared to CHF 126 million for the third quarter of the previous year. For the first nine months of 2015 cash flow from operating activities was CHF 196 million, compared with CHF 13 million for the first nine months of Capital expenditures (PPE) were CHF 95 million for the third quarter of 2015, compared with CHF 70 million for the third quarter of the previous year. For the first nine months of 2015, capital expenditures increased to CHF 211 million from CHF 175 million for the first nine months of Proceeds from disposals of activities not qualifying as discontinued operations for the first nine months mainly include cash proceeds from the disposal of the Energy Storage activities. Financing activities mainly include the sale of treasury shares, proceeds from and repayments of financial debt, dividends paid to the shareholders of Clariant and to non-controlling interests and the related interests paid and received.

6 Page 5 of 21 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) Nine Months Third 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 less impairment and gain/loss on disposals. EBITDA before exceptional items (Continuing) Nine Months Third Quarter CHF m EBITDA Restructuring, impairment and transaction-related costs Impairment (reported under Restructuring and impairment) 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 and gain/loss on disposals. Operating income before exceptional items (Continuing) Nine Months Third Quarter CHF m Operating income Restructuring, impairment and transaction-related costs Gain from the disposal of activities not qualifying as discontinued operations Operating income before exceptional items

7 Page 6 of 21 Adjusted earnings per share is the earnings per share adjusted for the impact of exceptional items, assuming an adjusted income tax rate of 26% for the period. Adjusted earnings per share (Continuing) Nine Months Third Quarter CHF m Operating income before exceptional items Amortization of intangible assets Finance income Finance costs Adjusted income before taxes Adjusted income taxes Adjusted net result from continuing operations Thereof attributable to non-controlling interests Thereof attributable to shareholders of Clariant Ltd Weighted average number of shares outstanding Adjusted earnings per share attributable to shareholders of Clariant Ltd (CHF/share) 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 Net debt

8 Page 7 of 21 CONDENSED FINANCIAL STATEMENTS OF THE CLARIANT GROUP Consolidated balance sheets ASSETS CHF m % CHF m % Non-current assets Property, plant and equipment Intangible assets Investments in associates and joint ventures Financial assets Prepaid pension assets 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 % 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

9 Page 8 of 21 Consolidated income statements Nine Months Third Quarter CHF m % CHF m % CHF m % CHF m % 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 5 Net income 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

10 Page 9 of 21 Consolidated statements of comprehensive income Nine Months Third Quarter 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 Total items that will not be reclassified subsequently to the income statement, gross Deferred tax on remeasurements Total items that will not be reclassified subsequently to the income statement, net Net investment hedge Currency translation differences Share of other comprehensive income of associates and joint ventures Effect of the reclassification of foreign exchange differences on previously held net 9 2 investments in foreign entities Total items that may be reclassified subsequently to profit and loss Deferred tax effect Total items that will be reclassified subsequently to the income statement, net 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 19 Total comprehensive income attributable to shareholders of Clariant Ltd

11 Page 10 of 21 Consolidated statement of changes in equity Other reserves Nine Months CHF m Total share capital Treasury shares (par value) Share premium reserves Cumulative translation reserves Total other reserves Retained earnings Total attributable to equity holders Noncontrolling interests Total equity Balance 31 December Net income Net investment hedge Remeasurements: Actuarial 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 Distributions Dividends to non-controlling interest Employee share & option scheme: Effect of employee services Treasury share transactions Balance 30 September Balance 31 December Net income Net investment hedge Remeasurements: Actuarial gain 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 Distributions Dividends to non-controlling interest Employee share & option scheme: Effect of employee services Treasury share transactions Balance 30 September

12 Page 11 of 21 Consolidated statements of cash flows Nine Months Third Quarter CHF m 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 Loss on 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 2 1 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 Proceeds from the disposal of discontinued operations Proceeds from the disposal of activities not qualifying as discontinued operations Cash flow from investing activities Purchase of treasury shares Sale of treasury shares Proceeds from financial debts Repayments of financial debts Distributions from the reserves to the shareholders of Clariant Ltd Dividends paid to non-controlling interest 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

13 Page 12 of 21 NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED) 1. Basis of preparation of financial statements These financial statements are the interim condensed consolidated financial statements (hereafter the interim consolidated financial statements ) of Clariant Ltd, a company registered in Switzerland, and its subsidiaries (hereafter the Group ) for the nine-month period ended on 30 September They are prepared in accordance with the International Accounting Standard 34 (IAS 34 Interim Financial Reporting ) and were approved on 28 October 2015 by the Board of Directors. These interim consolidated financial statements should be read in conjunction with the Consolidated Financial Statements for the year ended 31 December 2014 (hereafter the annual financial statements ) as they provide an update of previously reported information. The accounting policies applied are consistent with the ones applied at year-end The preparation of the interim consolidated 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 interim consolidated financial statements. If, in the future, such estimates and assumptions, which are based on the management s best judgment at the date of the interim consolidated 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. Seasonality of operations The Group operates in industries where significant seasonal or cyclical variations in total sales are not experienced during the financial year. 3. Fair value measurement All derivative financial instruments held by the Group at the end of September 2015 are classified as Level 2 as defined by IFRS 13, Fair Value Measurement. 4. Disposal activities 4.1 Disposal of Energy Storage activities On 28 February 2015, Clariant sold its Energy Storage activities pertaining to the Business Area Catalysis & Energy to British-based Johnson Matthey. Assets and liabilities pertaining to the Energy Storage activities, presented as held for sale in the balance sheet at the end of 2014, were deconsolidated. The following table shows the calculation of the result realized by Clariant in 2015 on the sale of its Energy Storage activities. CHF, in million Total consideration for the sale 73 Net assets transferred, after impairment recorded in 2014, including disposal-related expenses -62 Result on the disposal before taxes 11 Taxes 1 After tax profit on the disposal 12 This disposal result is subject to adjustments until the final determination of the selling price and of the values of the net assets disposed of. This is expected to occur in the fourth quarter of this year. 5. Restructuring, impairment and transactionrelated costs During the first nine months of 2015, Clariant recorded restructuring expenses in the amount of CHF 33 million, mainly pertaining to projects in Europe, impairment of goodwill in Italy in the amount of CHF 7 million and transaction-related costs in the amount of CHF 16 million. During the same period in the previous year, restructuring, impairment and transaction-related costs totaled CHF 139 million, mainly pertaining to the impairment expense recorded in the context of the sale of the participation in ASK Chemicals. 6. Distribution from reserves On 31 March 2015, the General Meeting approved a distribution of CHF 0.40 per registered share from capital contribution reserves. On 8 April 2015, a distribution totaling CHF 129 million was made to Clariant shareholders. 7. Launch of a new certificate of indebtedness On 17 April 2015, Clariant issued four certificates of indebtedness with a total sum of EUR 300 million. These certificates have a term of 5 years (EUR 150 million) and 8 years (EUR 150 million) respectively, each with fixed (based on mid-swap) or floating (based on six months Euribor) coupons. The interest costs of the tranches range from 0.9 % to 1.6 % per year.

14 Page 13 of Business Area figures Nine Months Sales to third parties EBITDA before exceptionals EBITDA CHF m % CHF % LC % CHF % LC % CHF % LC Care Chemicals Catalysis* 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* Natural Resources Plastics & Coatings Business Areas total Corporate Total Third Quarter Sales to third parties EBITDA before exceptionals EBITDA CHF m % CHF % LC % CHF % LC % CHF % LC Care Chemicals Catalysis* 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* Natural Resources Plastics & Coatings Business Areas total Corporate Total * Catalysis & Energy was renamed into Catalysis after the Energy Storage business was sold to UK-based Johnson Matthey. The transaction closed on 28 February 2015.

15 Page 14 of Business Area margins Nine Months Sales to third parties EBITDA before exceptionals EBITDA in % Care Chemicals Catalysis* Natural Resources Plastics & Coatings Total Operating income Operating income before exceptionals in % Care Chemicals Catalysis* Natural Resources Plastics & Coatings Total Third Quarter Sales to third parties EBITDA before exceptionals EBITDA in % Care Chemicals Catalysis* Natural Resources Plastics & Coatings Total Operating income Operating income before exceptionals in % Care Chemicals Catalysis* Natural Resources Plastics & Coatings Total * Catalysis & Energy was renamed into Catalysis after the Energy Storage business was sold to UK-based Johnson Matthey. The transaction closed on 28 February 2015.

16 Page 15 of Operating income EBITDA bridge Nine Months Care Chemicals Catalysis* Natural Resources Plastics & Coatings Total Business Areas Corporate Total Continuing CHF m Operating income / loss Depreciation of PPE Impairment Amortization of intangible assets EBITDA Restructuring, impairment and transaction-related costs Impairment (reported under Restructuring and impairment) Gain from the disposal of activities not qualifying as discontinued operations EBITDA before exceptional items Operating income / loss before exceptional items - Restructuring, impairment and transaction-related costs + Gain from the disposal of activities not qualifying as discontinued operations Operating income / loss Finance income Finance costs Income before taxes * Catalysis & Energy was renamed into Catalysis after the Energy Storage business was sold to UK-based Johnson Matthey. The transaction closed on 28 February 2015.

17 Page 16 of 21 Third Quarter Care Chemicals Catalysis* Natural Resources Plastics & Coatings Total Business Areas Corporate Total Continuing CHF m Operating income/loss Depreciation of PPE Impairment Amortization of intangible assets EBITDA Restructuring, impairment and transaction-related costs Impairment (reported under Restructuring and impairment) Gain from the disposal of activities not qualifying as discontinued operations EBITDA before exceptional items Operating income/loss before exceptional items Restructuring, impairment and transaction-related costs + Gain from the disposal of activities not qualifying as discontinued operations Operating income/loss Finance income 4 3 Finance costs Income before taxes * Catalysis & Energy was renamed into Catalysis after the Energy Storage business was sold to UK-based Johnson Matthey. The transaction closed on 28 February 2015.

18 Page 17 of Geographic information Sales Nine Months Third Quarter CHF m 2015 % of sales % of sales CHF % LC % 2015 % of sales % of sales CHF % LC % EMEA of which Europe of which Germany of which Switzerland of which MEA North America of which USA Latin America of which Brazil Asia - Pacific of which China of which India Total Discontinued operations 98

19 Page 18 of Condensed earnings per share data Nine Months Net income attributable to shareholders of Clariant Ltd (CHF m) Continuing operations Discontinued operations 8 22 Total Shares Number of registered shares at and respectively Weighted average number of shares outstanding Adjustment for granted Clariant shares Adjustment for dilutive share options 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

20 Page 19 of Finance income and costs Finance income Nine Months Third Quarter in CHF m Interest income Other financial income Total finance income Finance costs in 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 2 Total finance costs continuing operations

21 Page 20 of Foreign exchange rates Rates used to translate the consolidated balance sheets (closing rate) Change % 1 USD EUR BRL CNY INR JPY Nine Months 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

22 Page 21 of 21 CLARIANT WHAT IS PRECIOUS TO YOU? Clariant is a globally leading specialty chemicals company, based in Muttenz near Basel/Switzerland. On 31 December 2014, the company employed a total workforce of In the financial year 2014, Clariant recorded sales of CHF billion for its continuing businesses. Clariant s corporate strategy is based on five pillars: increase profitability, reposition portfolio, add value with sustainability, foster innovation and R&D, and intensify growth. The company reports in four Business Areas: Care Chemicals, Catalysis, Natural Resources, and Plastics & Coatings. Calendar of Corporate Events Your Clariant Contacts 17 February 2016 Full Year 2015 Results 21 April 2016 Annual General Meeting 28 April 2016 First Quarter 2016 Results 28 July 2016 First Half 2016 Results 27 October 2016 Nine Months 2016 Results Investor Relations Fax Anja Pomrehn Tel Siegfried Schwirzer Tel Marco Ferraro Tel Media Relations Fax Carsten Seum Tel Claudia Camensky 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.