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Clariant AG

Investor Presentation • Feb 14, 2008

856_ip_2008-02-14_4110711b-2ba9-41fc-8433-edaf89b7e869.pdf

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Full-Year Results 2007

Analyst Conference - February 14, 2008

Agenda

Full-Year highlights

Financial results

Business review

Outlook

Full Year Results 2007

Financial results

Business review

Outlook

Full-Year 2007 – Highlights

  • Continuing robust sales growth Full-Year highlights
  • Lowered SG&A costs in % of sales
  • Further good progress in restructuring
  • Operating cash flow significantly improved
  • Selling prices up with increasing momentum towards year end
  • Gross margins hit by escalating raw material prices, energy costs and unfavourable exchange rate development
  • Disappointing operating margin as a result

Full Year Results 2007

Necessity to improve performance

Full-Year 2007 financials

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Financial results

Business review

Outlook

Full Year Results 2007

February 14, 2008 Slide 6

Fourth Quarter 2007 – Key financial group figures

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* Continuing operations ** The presentation of the cash flow statement was changed to provide additional relevant information. Comparative information was reclassified accordingly

Financial results

Business review

Outlook

Fu ll Y
r R
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* Continuing operations

** The presentation of the cash flow statement was changed to provide additional relevant information. Comparative information was reclassified accordingly

February 14, 2008 Slide 7

Full-Year 2007 –Key financial group figures

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Financial results

Outlook

Composition of sales growth in FY 2007

Full-Year 2007 versus Full-Year 2006*Full-Year highlights

Outlook

Regional sales Full-Year/Q4 2007

February 14, 2008 Slide 9 Full Year Results 2007Full-Year 2007Asia/Australia/ Africa2,014 Europe 4,155 Americas2,364 including USA995including Germany 1,252 Fourth Quarter 2007Asia/Australia/ Africa498 Europe 1,000 Americas588including USA 232including Germany 312including China382including China96Total Sales: 8,533 +3% Total Sales: 2,086 +2% +4%±0%+7%+1%+2%+17%+6%+5%+2%-2% +6% +14%Continuing sales in CHF mn Organic growth rate in % LC Full-Year highlights Financial resultsBusiness review

Gross margin development and raw material inflation

Financial results

Business review

Outlook

Sales and margins by divisions – Full-Year 2007

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Full Year Results 2007

February 14, 2008 Slide 11

* Volume and price effect excluding the impact of changes in FX and acquisitions/divestitures ** Before exceptional items

Cash flow Full-Year 2007

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  • Improved Cash Flow generation
  • Further improvement in Net Working Capital
  • Committed to maintaining solid investment grade profile

February 14, 2008 Slide 12

* The presentation of the cash flow statement was changed to provide additional relevant information. Comparative information was reclassified accordingly.

Full Year Results 2007

Financial result Full-Year 2007

Full-Year highlights

Financial results

Business review

Outlook

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  • Net interest result improved year on year as a result of an optimized management of net debt throughout 2007
  • Foreign exchange gains contributed to an improvement in total financial result

Full Year Results 2007

Financial results

Business review

Outlook

Textile, Leather & Paper Chemicals

  • After a weak first half, prices rose in the second half of 2007
  • Sales in Textiles impacted by weakness in key markets India, Turkey, Italy
  • Sales in Paper peaked mid-2007
  • Restructuring measures taken to tackle declining performance in Leather: closure of Selby production site in the UK
  • Profitability declined mainly due to higher raw material prices and adverse FX developments

Full Year Results 2007

Financial results

Business review

Outlook

Pigments & Additives

  • Reversed negative trend of declining prices of recent years
  • Strong demand for Coatings and various niche products in Specialty Industries
  • Sales in the Plastic Business slowed due to weakening overall demand
  • Printing grew modestly, dampened by current market dynamics
  • Increasing raw material costs as well as negative FX affected margin adversely

Full Year Results 2007

Financial results

Business review

Outlook

Masterbatches

  • Robust growth despite slowing demand across the plastic industry
  • Sales in US at previous-years level, solid in Asia and Latam
  • Divestment of Australian business; acquisition in Colombia
  • Price increases offsetting higher raw material costs
  • Integration of Masterbatches Business acquired from Ciba added 6% to revenues; profitability impacted by integration

Full Year Results 2007

Financial results

Business review

Outlook

Functional Chemicals

  • Strong demand across most businesses
  • Good development in service-driven businesses, e.g. oil and mining related units
  • Robust demand in application driven market segments, e.g. crop protection and functional fluids
  • Product–driven units Detergents and Specialty Intermediates suffering, impacting profitability
  • Higher selling prices not offsetting steep rise in raw material cost

Full Year Results 2007

Financial results

Business review

Outlook

Outlook for 2008

Environment

  • Increasingly uncertain economic outlook
  • Further increases in raw material and energy costs

Clariant

  • Improving operating margin before exceptional items compared to 2007
  • Continuing strong cash flow generation
  • Period of active portfolio reshaping

Full Year Results 2007

Calendar of upcoming corporate events

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Full Year Results 2007

Your Investor Relations contacts

Dr. Ulrich SteinerHead of Investor Relations

i
l
e
ma

Phone +41 (0) 61 469 67 45 Mobile +41 (0) 79 297 27 07 [email protected]

Jaideep Pandya

Investor Relations Officer

email

Phone +41 (0) 61 469 67 49 Mobile +41 (0) 79 702 97 41 [email protected]

Mirjam Grieder

email

Phone +41 (0) 61 469 67 66 Fax +41 (0) 61 469 67 67 [email protected]

Full Year Results 2007

February 14, 2008 Slide 21

Clariant International Ltd· Rothausstrasse 61 · 4132 Muttenz · Switzerland · [email protected]

Full Year Results 2007

Sales and margins by Divisions – Fourth Quarter 2007

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e
n
s
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s		 4
9
0		 5
%
+		 5
%
+		 1
3.
7
%		 9.
0
%
M
b
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s
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5		 0
%		 6
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8
%
C
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u		 7
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l
G
T
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6		 %
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3
+		 %
9.
3		 %
1
0.
0

Full Year Results 2007

February 14, 2008 Slide 23

* volume and price effect excluding the impact of changes in FX and acquisitions/divestitures ** before exceptional items

Top 5 products in percentage of total raw material costs

R
k
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a
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n
g		 P
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1 E
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2 i
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e		 G
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%
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5
~		 l
T
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3 P
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4 T
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5 A
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s

Full Year Results 2007

Businesses and market segments

Full Year Results 2007

Key targets: to achieve above peer average ROIC by end of 2010

* Based on 2006 environmentROIC calculated on after-tax basis

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.

Full Year Results 2007

February 14, 2008 Slide 30

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.

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