Clariant Ag · SIX:CLN
Clariant — Q1 2006 Earnings Presentation
28 slides from Clariant's earnings presentation, May 9, 2006
Slide 1: Clariant – The Way Forward: 1st Quarter Results
Clariant – The Way Forward 1st Quarter Results May 9th, 2006
Slide 2: Content
Content Overview Key Factors – 1st Quarter Results 2006 Financial Review Business Review Performance Improvements Outlook 1st Quarter Results 2006 Slide 2
Slide 3: Overview & Key Factors 1st Quarter 2006
Overview & Key Factors st 1 Quarter 2006 Jan Secher, CEO 1st Quarter Results 2006 Slide 3
Slide 4: Clariant - The Way Forward
Clariant - The Way Forward Overview Q Very optimistic about long-term potential Key Factors 1st Quarter Results Q Strategy is right, people are excellent, priority on execution Financial Review Q Further scope to reduce organizational complexity Business Review Performance Q Sharpen focus on key cha
Slide 5: Clariant is delivering as promised
Clariant is delivering as promised Overview Q Strong commitment at all levels to the Transformation Program Key Factors 1st Quarter Results Q Performance improvements fully on track Financial Review – More than 2,400 jobs eliminated Business Review Performance – CHF 520 million cost base reduction a
Slide 6: 1st Quarter 2006 – Good sales growth with increased profitability
1st Quarter 2006 – Good sales growth with increased profitability Overview Q Organic growth of 6% plus positive currency effect of 5%, Key Factors 1st Quarter Results to CHF 2.161 billion Financial Review Q Transformation Program delivered further CHF 60 million Business Review of cost reductions Pe
Slide 7: Financial Review 1st Quarter 2006
Financial Review 1st Quarter 2006 Patrick Jany, CFO 1st Quarter Results 2006 Slide 7
Slide 8: Key financial group figures
1st Quarter 2006 - Key financial group figures Overview Key Factors 1st Quarter Results 1st Quarter 2006 2005 Financial Review CHF mn % of sales CHF mn % of sales Business Review Sales 2,161 100% 1,992 100% Performance Local currency growth (LC) 3% Improvements - Organic growth 6% Outlook - Acquisit
Slide 9: Sales growth driven by strong volume
Sales growth driven by strong volume Overview 1st Quarter 2006 versus 1st Quarter 2005 Key Factors 1st Quarter Results +5% +11% Financial Review Business Review 3% Divestments* Performance Improvements Outlook +6% +0% +6% 5% Currencies Local currency 3% growth Volume Price Organic growth Currencies
Slide 10: Regional sales in 1st Quarter 2006
Regional sales in 1st Quarter 2006 Overview 1st Quarter 2006 Key Factors 1st Quarter Results Asia/Australia/Africa Europe Financial Review 451 1,084 Business Review of which +3% Performance Improvements China 72 +13% +6% Outlook of which +9% USA 312 +6% +5% Americas of which 626 Germany* 334 Sales:
Slide 11: Transformation Program costs & benefits
Transformation Program costs & benefits Overview Key Factors 100 1st Quarter Results 90 Financial Review 70 60 Business Review 50 Performance Benefits Improvements Outlook 2005 Q1 Q2 Q3 Q4 2006 Q1 6 29 30 10 17 64 63 Costs 23 13 26 in mn CHF 1st Quarter Results 2006 Performance improvement impact* O
Slide 12: Key drivers of operating income before exceptionals
Key drivers of operating income before exceptionals in 1st Quarter 2006 Overview Key Factors 1st Quarter Results Price* Volume Divestments FX Raw CPIP Other +0% & mix -3% +5% materials* measures -2% Financial Review +6% -2% +40 Business Review Performance Improvements 156 Outlook 139 EBIT EBIT Q1 20
Slide 13: Financial result 1st Quarter 2006
Financial result 1st Quarter 2006 Overview Key Factors 1st Quarter Results 1st Quarter Financial Review 2006 2005 CHF mn CHF mn Business Review Interest expense -19 -32 Performance Other financial expenses -6 -10 Improvements Financial income +4 +10 Outlook Currency result, net -11 +15 Other financi
Slide 14: Cash flow 1st Quarter 2006
Cash flow 1st Quarter 2006 Overview Key Factors 1st Quarter Results 1st Quarter Financial Review 2006 2005 CHF mn CHF mn Business Review Net result 94 72 Performance Depreciation & amortization 70 73 Improvements Other -35 -17 Outlook Operating cash flow before working capital 129 128 Change in work
Slide 15: Successful refinancing of the Group
Successful refinancing of the Group Overview Q Well-received €600 million seven-year Eurobond Key Factors 1st Quarter Results Q Completes extensive refinancing project Financial Review Q Maturities extended to 2013 Business Review Performance Q Optimizes balance sheet structure Improvements Q Increa
Slide 16: Business Review 1st Quarter 2006
Business Review 1st Quarter 2006 Jan Secher, CEO 1st Quarter Results 2006 Slide 16
Slide 17: Divisional sales and margins – 1st Quarter
Divisional sales and margins – 1st Quarter 2006 Overview Key Factors 1st Quarter Results 1st Quarter Sales EBITDA Margin in %** Financial Review % Organic % LC CHF mn Growth* 2006 2005 Business Review Textile, Leather & Paper Chemicals 564 4 4 9.2 10.5 Performance Pigments & Additives 499 4 4 17.4 1
Slide 18: Textile, Leather & Paper Chemicals
Textile, Leather & Paper Chemicals Overview Q Strong growth in paper, especially driven by optical brighteners Key Factors 1st Quarter Results Q Volume growth in textile mainly in dyestuffs and emulsions Financial Review Q Slow recovery for leather products Business Review Q Asia weaker than expecte
Slide 19: Pigments & Additives
Pigments & Additives Overview Q Strong performance for products in the plastics markets Key Factors 1st Quarter Results Q Increased demand for colorants as well as additives Financial Review Q High volumes, but pressure on prices in challenging market conditions Business Review Q Market for both ind
Slide 20: Masterbatches
Masterbatches Overview Q Unusually strong quarterly growth with price increases achieved in a highly Key Factors competitive environment 1st Quarter Results Q Overall excellent performance in the plastic markets Financial Review Q Robust growth in North America - rebounding from a weak 4th Quarter B
Slide 21: Functional Chemicals
Functional Chemicals Overview Q Solid demand across most businesses Key Factors 1st Quarter Results Q Increased demand for personal care and construction chemicals Financial Review Q Crop protection declined due less demand for Asian Rust fungicides Business Review Q Strong demand especially for de-
Slide 22: Life Science Chemicals
Life Science Chemicals Overview Q Pharmaceutical Fine Chemical Business: Key Factors – Agreement to sell the business to TowerBrook Capital Partners 1st Quarter Results – Successfully launched major projects, good growth in volumes and prices Financial Review Business Review – Expected sales in 2006
Slide 23: Performance improvements to deliver strongly in 2006
Performance improvements to deliver strongly in 2006 Overview EBIT impact of measures* Key Factors 1st Quarter Results +250 Financial Review 800-900 710 Business Review Performance 460 1st Quarter Improvements 520 Outlook 150 2004 2005 2006 2007 200 481 1st Quarter 465 610 610 in mn CHF 1st Quarter
Slide 24: Personnel reduction on track
Personnel reduction on track Overview Key Factors 27,008 1st Quarter Results Financial Review Business Review 24,769 23,383 207 Performance Improvements 23,176 Outlook 1st Quarter Results 2006 Dec 31, 2003 Dec 31, 2004 Dec 31, 2005 Reduction Mar 31, 2006 1st Quarter 2006 Slide 24 Number of employees
Slide 25: Outlook for 2006
Outlook for 2006 Overview Q Good sales growth in local currency terms above last year Key Factors 1st Quarter Results Q Raw material pricing environment shifted to higher levels Financial Review Q Pricing and sourcing initiatives to largely offset increased Business Review raw material costs Perform
Slide 26: Calendar of upcoming corporate events
Calendar of upcoming corporate events May 10, 2006 Deutsche Bank Conference Buergenstock May 10-19, 2006 CEO, CFO and IR on Roadshow in USA and Europe May 18, 2006 Sarasin Conference Lucerne June 21, 2006 Sal. Oppenheim Conference Zurich August 2, 2006 Half Year 2006 Results November 7, 2006 Nine Mo
Slide 27: Your Investor Relations contacts
Your Investor Relations contacts Dr. Holger Schimanke Head Investor Relations Phone +41 (0) 61 469 67 45 Mobile +41 (0) 79 343 59 83 email [email protected] Fabian Hildbrand, CIIA Investor Relations Officer Phone +41 (0) 61 469 67 49 Mobile +41 (0) 79 763 93 80 email fabian.hildbrand@cla
Slide 28: Disclaimer
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 ma