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Public
Clariant Presentation25.07.2019
Performance, Growth and InnovationCLARIANT PRESENTATION
2019
Clariant Presentation, 25.07.2019
Table of Contents
Public, Performance, Growth and Innovation2
– Clariant at a Glance
– A Culture Based on Values
– A Clearly Defined Corporate Strategy
– Specific Targets for the Future
– Executive Committee
Clariant at a Glance
Clariant Presentation, 25.07.2019
Clariant History
Public, Performance, Growth and Innovation4
1995 2000 2006 2011 2012 2015 2017 2018
1995
Clariant Swiss parent
company created in a
spin-off and subsequent
IPO of the Sandoz
Chemicals Division
1997
Acquisition of Hoechst AG
specialty chemicals
business
2000
Acquisition of British BTP
2001 – 2007
Divestment of several
bigger businesses due to
financial difficulties resulting
from BTP acquisition
2006
Acquisition of Ciba
Masterbatches
Divestment of
Pharmaceutical Fine
Chemicals
2008
Change in management
2009
Launch of Clariant
Excellence
2009 – 2010
Restructuring phase
2011
Acquisition of Süd-Chemie
Roll-out of new Clariant
Corporate Values
2012
Clariant rebranding
Introduction of new
corporate mission and
vision
2013
Opening Clariant
Innovation Center in
Frankfurt, Germany
2013 – 2014
Divestment of 5
businesses
2014
Sustainability
becomes strategic pillar
2015
Establishment of Global
Business Services
Clariant celebrates its 20th
birthday
2016
Acquisition of Kel-Tech
and X-Chem in the U.S.
2017
Announcement of planned
merger with Huntsman
White Tale Holdings steps
in
Termination of merger
Strategy update started
2018
SABIC becomes Clariant’s
biggest shareholder by
acquiring the stake of White
Tale
Clariant and SABIC sign
memorandum of
understanding and
governance agreement
Change in management
Clariant Presentation, 25.07.2019Clariant Presentation, 25.07.2019
Clariant at a Glance – A Globally Leading Company in Specialty Chemicals
Public, Performance, Growth and Innovation5
Business Areas
Net result 2018 (CHF m)
(including discontinued
operations)
Sales 2018 (CHF m)
from continuing operations
4 404
356
3 17901EBITDA 2018 (CHF m)
after exceptionals from
continuing operations
13.7%
605
EBITDA margin 2018
after exceptionals from
continuing operations
Employees 2018
(including discontinued operations)
154companies countries
53in
(including discontinued operations)
Clariant Presentation, 25.07.2019
Clariant at a Glance
6 Public, Performance, Growth and Innovation
North
America
890
Latin
America
561Middle East &
Africa
338
Asia-Pacific
1080Europe
1535
SALES PER REGION IN CHF m, TOTAL 2018: 4 404 (continuing operations)
Clariant Presentation, 25.07.2019
Three Business Areas – the Right Portfolio for Future Growth
7 Public, Performance, Growth and Innovation
CARE CHEMICALS CATALYSIS NATURAL RESOURCES
Clariant Presentation, 25.07.2019
Business Area Care Chemicals
8 Public, Performance, Growth and Innovation
BUSINESS UNITS AND SEGMENTS
EBITDA margin
after exceptionals
Sales in million CHF
1665 18.9%
– Industrial & Consumer Specialties: Consumer Care, Industrial Applications, Base Products, Food Ingredients,
Encapsulation Technologies
– New Business Development: Electronic Materials, Additive Manufacturing/3D Printing
KEY FINANCIAL FIGURES 2018
Clariant Presentation, 25.07.2019
Business Area Catalysis
9 Public, Performance, Growth and Innovation
BUSINESS UNITS AND SEGMENTS
EBITDA margin
after exceptionals
Sales in million CHF
861 21.3%
– Catalysts: Syngas Catalysts, Petrochemicals, Specialty Catalysts, Emission Control Catalysts
– Biofuels & Derivatives: Cellulosic ethanol and cellulose derived products
KEY FINANCIAL FIGURES 2018
Clariant Presentation, 25.07.2019
Business Area Natural Resources (including Additives)
10 Public, Performance, Growth and Innovation
BUSINESS UNITS AND SEGMENTS
KEY FINANCIAL FIGURES 2018
– Additives: Plastics, Coatings & Inks, Consumer Markets
– Functional Minerals: Purification, Foundry Additives, Functional Additives, Specialty Segments
– Oil and Mining Services: Oil Services, Mining Solutions, Refinery Services
EBITDA margin
after exceptionals
Sales in million CHF
1878 14.4%
A Culture Based on Values
Clariant Presentation, 25.07.2019
Clariant as the Globally Leading Company for Specialty Chemicals
12 Public, Performance, Growth and Innovation
We aim to be the globally leading company
for specialty chemicals and to stand out for above-
average value creation for all of our stakeholders
We create value through appreciation of the needs
– of our customers by providing competitive and
innovative solutions
– of our employees by adhering to our corporate
values
– of our shareholders by achieving above-average
returns
– of our environment by acting sustainably
VISION
MISSION
OBJECTIVES
STRATEGY
Clariant Presentation, 25.07.2019
A Value System with Focus on Performance, People, and Planet
13 Public, Performance, Growth and Innovation
APPRECIATION AS THE MOTOR OF DAILY BUSINESS
Sustainable company successes and value generation
can only be realized in a corporate culture that is
embraced by everyone involved, and which achieves a
balance between business performance, social interests,
and environmental targets.
APPRECIATION
Clariant Presentation, 25.07.2019
Performance – Creating Value
14 Public, Performance, Growth and Innovation
ENTERPRISE VALUE IN BILLION CHF
1.62.8
4.32.7
3.7
5.4 5.66.3 5.8
9.0
6.01.2
0.5
0.11.7
1.8
1.5 1.31.3
1.5
1.5
1.4
2.83.3
4.4 4.4
5.5
6.9 6.97.6 7.3
10.5
7.4
0
2
4
6
8
10
12
14
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Enterprise value Net debt Market capitalization (including own shares)
Clariant Presentation, 25.07.2019
People – Attracting and Retaining Talents
15 Public, Performance, Growth and Innovation
North
America
13%
Latin
America
13%Middle East &
Africa
5%
Asia-Pacific
27%Europe
42%Employees 2018 (FTEs)
17901
of the employees are
based in the emerging
markets
45%
Clariant Presentation, 25.07.2019
Planet – Environment Protection as a Driver for Growth
Public, Performance, Growth and Innovation16
ENVIRONMENTAL TARGETS1 BY 2025 IN % WELL ON TRACK compared to 2013 basis
1 Per ton of products produced, 2 Waste performance mainly affected by non-hazardous waste increase e.g. from gypsum waste
Reduction
of Energy
Consumption
Reduction
of Direct CO2
Emissions
Reduction of
Emissions from
Greenhouse
Gases
Reduction
of Water
Consumption
Reduction
of Volume
of Waste Water
Reduction
of Volume
of Waste2
-35
-35-40-35
-30-30
A Clearly Defined Corporate Strategy
Clariant Presentation, 25.07.2019
Clariant’s Strategy with enhanced product and solution offerings to increase performance
18 Public, Performance, Growth and Innovation
OUR WAY TO MEET OUR OBJECTIVES
FOCUS ON
INNOVATION
AND R&D
1
ADD VALUE
WITH
SUSTAINABILITY
2
REPOSITION
PORTFOLIO
3
INTENSIFY
GROWTH
4
INCREASE
PROFITABILITY
5
PEOPLE EXCELLENCE
Clariant Presentation, 25.07.2019
1. Focus on Innovation and R&D
19 Public, Performance, Growth and Innovation
INNOVATION FIGURES
Growth through innovation* of group sales 2018
spent in R&D
of R&D expenditures 2018
in CHF
209 m 3.2% >3%
6700R&D
Centers
>11008 People in R&D
(end of 2018)Patents
>125Scientific collaborations
>50 Technical
Application
Centers
*Contains the contribution to growth from both Top Line Innovation as well as Life Cycle Innovation. Potential cannibalization of existing sales caused by Life Cycle Innovation in certain cases has not been excluded from calculation.
Clariant Presentation, 25.07.2019
1. Focus on Innovation and R&D
20 Public, Performance, Growth and Innovation
NEW CLARIANT PRODUCT HIGHLIGHTS
AristocareTM Smart
Surface modification polymer for hard-surface
cleaners that creates a protective film on
surfaces to prevent soap scum and lime scale
build up or enable easy removal, reduce
streaking, and enable faster water drainage.
EnviCat® NOx SCR
High-performance catalyst for the purification
of exhaust gas enabling significant reduction
of nitrogen oxides, which contribute to a
range of environmental hazards such as acid
rain, smog, and ground-level ozone.
Genadvance®
Conditioning agents for hair care with
significantly improved sustainability profile
that enable customized product formulations
with unparalleled performance.
Licocene® PP 2502
Adhesive for comfort products with highest
purity, lowest energy consumption in
processing; next generation product based
on renewable monomers available.
Clariant Presentation, 25.07.2019
2. Add Value with Sustainability
21 Public, Performance, Growth and Innovation
FACTS AND FIGURES
products excelled
with the EcoTain® label
of product portfolio
meet Clariant’s
sustainability definition1
Ambitious environmental
targets
2025 >80% 193
Committed toAmong top 6% of
companies in
Sustainability
Dialog
Dow Jones
Sustainability
Index
established
LTAR2
decreased to 0.15 in 2018
compared to 0.33 in 2012
of product portfolio
screened based on
36 sustainability criteria1
80%
UN Global Compact,
Responsible CareTM and
Together for
Sustainability
1 Excluding Masterbatches, 2 Lost Time Accident Rate
Clariant Presentation, 25.07.2019
3. Reposition the Portfolio
22 Public, Performance, Growth and Innovation
AN OPTIMIZED PORTFOLIO FOR SUSTAINABLE PROFITABILITY
Colex Spolka
Oxiteno
Catalysts
2012
CRM (France),
Champion, Gulf of
Mexico Oil
Business (USA),
BayInk
(Germany),
Organic pigments
business, Jiangsu
Multicolor (China)
Textile Chemicals,
Paper Specialties,
Emulsions
2013
Plastichemix
Industries (India),
VitaPac (Hong
Kong),
Aerochem (Sweden)
Detergents &
Intermediates,
Leather Services
Water Treatment
(South Africa), ASK
Chemicals/Joint
Venture
2014
Beraca – Division
Health & Personal
Care (Brazil),
Companhia
Brasileira de
Bentonita (Brazil),
Kilfrost’s Aircraft
De-icing Business
(USA, Asia)
Energy Storage
Business
Water Treatment
Business (Brazil)
2015
Vivimed Labs (India),
SQE Olivene (Italy),
Carboflex (Brazil), Kel-
Tech (USA), X-Chem
LLC (USA), Mining
Service Business of
Flomin (USA) Chemical
& Mining Services
(Australia)
2016
AC
QU
ISIT
ION
SD
IVE
ST
ME
NT
S
2018
Memorandum of
Understanding with
SABIC on a significant
collaboration
opportunity between
the two companies in
the area of high
performance materials
INTENDEDDivestment of
Pigments, Standard
Masterbatches and
Healthcare Packaging
businesses
Clariant Presentation, 25.07.2019
4. Intensify Growth
23 Public, Performance, Growth and Innovation
CLARIANT’S SALES SHIFT TO CORE GROWTH MARKETS
Latin
America
MEA
North America 15%
Europe
Asia-Pacific
2005
Latin
America
8% MEA
North America 20%
Europe 35%
24% Asia-Pacific
2018
(continuing operations)
13%
6%
17%
49%
13%
Clariant Presentation, 25.07.2019
5. Increase Profitability
24 Public, Performance, Growth and Innovation
– Cross-linking of Operational Excellence, Innovation
Excellence, Commercial Excellence, and People
Excellence is a key to success
– Cost discipline across the company
– Efficient delivery of business services
– Avoiding remnant costs from divestments
– Investments into innovation and capex projects
OPERATIONAL
EXCELLENCE
INNOVATION
EXCELLENCE
COMMERCIAL
EXCELLENCE
PEOPLE
EXCELLENCE
Efficiency
improvements
in all operational
areas
Establish Clariant
as a global
innovation leader
in the specialty
chemicals
business
Optimization
of sales and
marketing
processes
Empowerment
of Clariant
employees to
manage
company
performance
efficiently
CLARIANT EXCELLENCE AS THE FOUNDATION FOR SUSTAINABLE GROWTH
Clariant Presentation, 25.07.2019
People Excellence Acts as Enabler of Strategy Execution
Public, Performance, Growth and Innovation25
PEOPLE EXCELLENCE IN FIGURES KEY ELEMENTS OF PEOPLE EXCELLENCE
Drive individual, team and organizational
effectiveness through strong leadership.
Consciously model behaviors every day to
provide a sense of purpose to the individual
and to create employee engagement.
Effectively attract, retain, develop and deploy
key people and create a high-performing,
sustainable organization.
Strengthen the capabilities of individuals by
offering tailored and impactful learning
initiatives.
Number of employees in
the local, regional, and
global talent pools
Senior Management
positions filled by internal
placement
84% 1261
Talent reviews resulting in
concrete development steps
and career measures
Retention of total talents
95% 60
Average training hours per
participants
Number of training
participants
15 791 15
LEADERSHIP
DEVELOPMENT
CULTURE AND
ENGAGEMENT
TALENT
MANAGEMENT
LEARNING AND
CAPABILITY
BUILDING
Specific Targets for the Future
Clariant Presentation, 25.07.2019
Priorities 2019 – Moving Along the Profitable Growth Path
Public, Performance, Growth and Innovation27
2019 KEY ELEMENTS PERFORMANCE
– Continued cost reduction and efficiency
– Clariant Excellence – Implementing new ways
of doing business
– Customer focus
GROWTH
– Exploit growth markets in Asia and NORAM
– Mergers & Acquisitions
INNOVATION
– Close customer collaboration
– Product differentiation
– Digital business models
GROWTHINNOVATION
PERFORMANCE
2019
Executive Committee
Clariant Presentation, 25.07.2019
The Executive Committee
29 Public, Performance, Growth and Innovation
HARIOLF KOTTMANN PATRICK JANY
Chief Financial Officer
HANS BOHNEN
Chief Operating OfficerExecutive Chairman
Responsibilities:
Clariant Excellence, Corporate Planning & Strategy,
Group Communications, Group Human Resources,
Group Legal, and the regions Greater China, India,
Japan, and South East Asia & Pacific
Responsibilities:
Corporate Accounting, Corporate Controlling,
Corporate Mergers & Acquisitions, Corporate Tax,
Corporate Treasury, Global Business Services, Group
Compliance, Group Finance Services, Group
Information Technology, Investor Relations, and the
regions Europe and Middle East & Africa
Responsibilities:
Corporate Sustainability & Regulatory Affairs,
Digital4Clariant, Group Procurement Services, Group
Technology & Innovation, Business Units Additives,
Catalysts, Functional Minerals, Industrial & Consumer
Specialties, Masterbatches, Pigments and Oil and
Mining Services, Business Line Biofuels & Derivatives,
and the regions Latin America and North America
Clariant Presentation, 25.07.2019
Disclaimer
30
This presentation contains certain statements that are
neither reported financial results nor other historical
information.
This presentation also includes forward-looking
statements. Because these forward-looking statements
are subject to risks and uncertainties, actual future results
may differ materially from those expressed in or implied by
the statements.
Many of these risks and uncertainties relate to factors that
are beyond Clariant’s ability to control or estimate
precisely, such as future market conditions, currency
fluctuations, the behavior of other market participants, the
actions of governmental regulators and other risk factors
such as: the timing and strength of new product offerings;
pricing strategies of competitors;
the Company’s ability to continue to receive adequate
products from its vendors on acceptable terms, or at all,
and to continue to obtain sufficient financing to meet its
liquidity needs; and changes in the political, social and
regulatory framework in which the Company operates or
in economic or technological trends or conditions,
including currency fluctuations, inflation and consumer
confidence, on a global, regional or national basis.
Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of
the date of this document.
Clariant does not undertake any obligation to publicly
release any revisions to these forward-looking statements
to reflect events or circumstances after the date of these
materials.
Public, Performance, Growth and Innovation