the clariant story - amcham · pdf fileeuropean emulsion to divest textile ... america...

Public

The Clariant Story

Hariolf Kottmann

CEO

09.07.2013

The Clariant Story

The Clariant Story, Hariolf Kottmann, CEO, 09.07.2013

Table of Contents

Public, Swiss-American Chamber of Commerce

History 3

The new Clariant

13

Committed to further value creation 19

2015 and beyond 25

2

Public

The Clariant Story

Hariolf Kottmann

CEO

09.07.2013

The Clariant Story

HISTORY


The chemical industry in Switzerland


Lonza

Actelion

Novartis

Performance

Polymers

Additives

Dyes &

Pigments

Chemicals

Agribusiness Syngenta

Clariant

Ciba SC

Performance

Polymers

Roche

Agribusiness

Flavours &

Fragrances

Vitamines

Ciba Geigy

Ciba-

Geigy

Sandoz

Chemicals

Chemie

Holding

Ems

Synthex

Genentech

Hoechst

Chemicals

Alloid

Colloids

Boehringer

Mannheim

BTP

AstraZeneca

Agribusiness

Givaudan

Huntsman

DSM

BASF

Quelle: SGCI Chemie Pharma 2010

1970

1996

1999

2008

4


The Clariant story

5

Clariant has come

a long way – now

we are going

beyond what has

already been

achieved

Public, Swiss-American Chamber of Commerce,The Clariant Story


Acquisition of

Hoechst Specialty

Chemicals

Acquisition

of BTP

Divestment of

Cellulose Ethers

Divestment

of Electronic

Materials

Divestment of

Acetyl Building

Blocks

Acquisition of CIBA

Masterbatches

Divestment of

Custom

Manufacturing

Acquisition of

Rite Systems

and Ricon Colors

Acquisition of Prairie

Petro-Chem

Acquisition of

Süd-Chemie AG

Acquisition of Italtinto S.r.l.

Acquisition of all minority

shares in Colex Spolka

Acquisition of Oberhausen

Technology Center

Acquisition of Octagon

Process LLC

Divestment of

European Emulsion

Business and

Hydrosulfite North

America

Divestment of

Pharmaceutical Fine

Chemicals

ACQUISITIONS

DIVESTMENTS

CLARIANT

SPIN-OFF

FROM

SANDOZ

AND IPO

Active portfolio management

1997 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1995 > 2012

Signed agreement

to divest Textile

Chemicals, Paper

Specialties and

Emulsions to SK

Capital

Public, Swiss-American Chamber of Commerce 6


Clariant’s roadmap to increased performance

Source: Clariant Management

Clariant’s three phases roadmap since 2009

Continuous improvement

Profitable growth

Restructuring


Clariant story - Roadmap

2009 2010 2011 2012 2013 2014 2015

7


Restructuring 2009 / 10


Cash generation

Ratio of net working capital to sales reduced to 19.6% (end 2011) from 23.8%

(end 2008)

Cost cutting

Employees -20%, GANO (20 sites closed)

Reduction of complexity

New group organization (BU service unit, regional centers)

Source: Clariant Management

Clariant story - Roadmap

8


Clariant Excellence: The tool to change the way we operate


INNOVATION

EXCELLENCE

——————— Promoting new ideas

and solutions for

profitable growth

OPERATIONAL

EXCELLENCE

——————— Striving for optimum

efficiency across all of

our operating

processes

PEOPLE

EXCELLENCE

——————— Enabling our people to

achieve a culture of

continuous

improvement

COMMERCIAL

EXCELLENCE

——————— Empowering sales and

marketing to offer the

best customer service

and value

LEANSIGMA

Program for continuous improvement

Benefits of 300 million CHF through

the end of 2012

Benefits of 60 million CHF per year


...based on clear focus

Profitable Growth

4

– with future perspectives

– with strong growth rates Markets

– with competitive positions

– with strong pricing power Businesses


Clariant story - Strategy

4 Pillars Strategy

1 Increase profitability

2 Foster innovation and R&D

3 Intensify growth

4 Reposition portfolio

10

Organic sales growth > market growth

ROIC above peer group average

EBITDA bei margin > 17.0%


Clariant at a glance

11 11

KEY FACTS

Sales 2012 (CHF m)

6 038 More than

100 Group companies worldwide

EBITDA 2012 (CHF m) before exceptionals

802 EBITDA margin 2012

13.3%

Represented in

76 countries worldwide

Net income 2012 (CHF m)

211

7 Business Units reported in

4 Business Areas

End 2012

21 202 employees

(incl. discontinued operations)

Internal, Performance - Growth - Innovation. This is precious to us.

Clariant story - Today


The four Business Areas

Performance. Growth. Innovation. - Clariant Media Day 2013 12

Care

Chemicals

Natural

Resources

Catalysis &

Energy

Plastics &

Coatings

Public

The Clariant Story

Hariolf Kottmann

CEO

09.07.2013

The Clariant Story THE NEW CLARIANT

CHANGING POSITIONING

AND MINDSET


Clariant today – a new culture centred around the “appreciation” brand core

Only when

the right balance is achieved between

social interests,

environmental goals, and

cost effectiveness

ecological, economic and social

performance can be guaranteed.



PERFORMANCE Consistently higher profitability level


9.5% 9.7%

7.5%

12.7% 13.2% 13.3%

EBITDA* margin

* Before exceptional items, as reported

2007 2008 2009 2010 2011 2012

Main levers

Break-even point

significantly lowered

Transformational

Süd-Chemie

acquisition

Divestment of

diluting businesses

15


PERFORMANCE Value creation since 2008


'4.0 '4.2

'2.4 '1.6

'2.8

'4.3

'2.7 '3.7

'4.7

4.3

1.2

1.5

1.2

0.5

0.1 1.7

2.1

1.8

8.3

5.4

3.9

2.8 3.3

4.4 4.4

5.8

6.5

net debt

market cap

enterprise value

Enterprise Value

2001 2004 2008 2010 2011 2012 2007 current 2009

Improved operational

performance reflected

in higher valuation

16


PEOPLE Becoming a preferred employer in the industry


Attract the best talents in the industry:

competitive terms of employment

continuous further education and employee

development

good work-life balance for every individual –

e.g. family policy

integration of all employees into permanent

improvement process

17


PLANET Committed to challenging environmental targets in 2020


Sustainable and leading-edge technology – highest priority on developing new products

that are particularly eco-compatible and sustainable

Targets based on 2005 figures

18

Public

The Clariant Story

Hariolf Kottmann

CEO

09.07.2013

The Clariant Story

COMMITTED TO FURTHER

VALUE CREATION


Exploiting strong market positions – intensify growth by focusing on customers and innovation


Change the way we do

our business from

product focus to

customer orientation

Develop expertise to

commercialize

innovations serving

customer needs

Tools in place

Functional Excellence

R&D and Innovation

CUSTOMER

Catalysis & Energy

Natural Resources

Plastics & Coatings

Care Chemicals

20


Crop Care – Synergen® branded products

Customer need

Green and sustainable

agrochemical products

containing adjuvants that

increase spray-retention,

accelerate penetration

and enhance uptake of

the crop protection agent

Clariant solution

Synergen® products –

non-toxic, non-irritating

adjuvants based on

renewable feedstock

Public, Swiss-American Chamber of Commerce,The Clariant Story 21


Oil Services – Phasetreat® demulsifier products

Customer need

Separate emulsified oil

and water in a wide

variety of crude oil

qualities

Clariant solution

Phasetreat® demulsifiers,

separating emulsions into

dry oil and clean water



Catalysts – EnviCat® products for emission control

Customer need

Removing nitrous oxide,

the third most harmful

climate gas after

methane and CO2, from

the waste gas of

industrial plants

Clariant solution

EnviCat® N2O converts

N2O to the harmless

substances nitrogen,

oxygen and water



Biotech & Renewables Center

Customer need

Products based on

renewable feedstock

Clariant solution

Biotech & Renewables

Center – sunliquid®

process for the sustainable

production of cellulosic

ethanol from agricultural

residues


Public

The Clariant Story

Hariolf Kottmann

CEO

09.07.2013

The Clariant Story 2015 AND BEYOND



Advancing into the second quartile of the specialty chemicals peer group by 2015

>19%

16-19%

12-16%

<12%

EBITDA*

CLARIANT

2008

CLARIANT

2012

CLARIANT

2015E Peers (extract)

Albemarle

Croda

Evonik

Rockwood

Altana

BASF

Solvay

Wacker Chemie

* Before exceptional items, as reported

26


Continuity beyond 2015

Above GDP top-line growth with a sustained high profitability

Performance. Growth. Innovation. - Clariant Media Day 2013 27

Growth elements :

– anticipate/answer current and future customer needs

– harvest innovation, develop technology platforms

– focus investments on growth areas in specialty chemicals

– continue disciplined performance management

> 2015



► AN ATTRACTIVE INVESTMENT CASE

28

Public

The Clariant Story

Hariolf Kottmann

CEO

09.07.2013

Questions & ANSWERS

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