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Clariant AG Interim / Quarterly Report 2007

Aug 2, 2007

856_ip_2007-08-02_88c034f0-1ee2-4165-b2cf-d324a3791b3c.pdf

Interim / Quarterly Report

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First Half Results 2007

Implementing world class performance August 2, 2007

Contents

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First Half Results 2007

Jan Secher

First Half Results 2007

First Half 2007 – Key financials

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Financial results

Business review

Outlook

Backup

First Half 2007 – Key dynamics & actions

  • Strong increase in raw material prices affecting in particular PA and TLP
  • Selling prices up +1% with further price increases announced
  • Unfavorable FX environment impacted gross profit
  • SG&A cost reductions, product pruning & site review activities well underway
  • Measures to reduce net working capital on track
  • Management changes announced

First Half Results 2007

Progressing in a shifting industry environment

Financial Results Patrick Jany

First Half Results 2007

First Half 2007 – Financial group figures

Key factors

F
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Business review

Outlook

Backup

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Sales growth with higher prices

First Half 2007 versus First Half 2006*

August 2, 2007 Slide 11 First Half Results 2007Key factors Financial resultsBusiness reviewOutlookBackup 0-+Q16

Raw material costs increasing

Further price increases to offset rising raw material costs

First Half 2007 – Cash flow

Key factors

Outlook

Backup

Financial results

Business review

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  • Inventory reduction with expected negative impact on profits
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First Half Results 2007

First Half 2007 – Financial result

Key factors

Financial results

Business review

Outlook

Backup

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  • Stable interest expenses despite higher average gross debt and interest rates
  • Total financial result helped by favorable currency movements

First Half Results 2007

Successful launch of CHF 250 mn bond Debt maturity profile on June 30, 2007

Business Review & Outlook

Jan Secher

First Half Results 2007

Financial results

Business review

Outlook

Backup

First Half 2007 – Divisional sales and margins

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First Half Results 2007

August 2, 2007 Slide 17 * Volume and price effect excluding the impacts of changes in FX and acquisitions /divestitures ** before exceptional items

Outlook

Backup

Financial results

Business review

Textile, Leather & Paper Chemicals

  • Solid demand with continued price pressure; growth driven mainly by Asia, Latin America and emerging markets
  • Good volumes in Paper; positive development for dyes & chemicals
  • Solid textile business with increased demand for finished products especially from China; however US and Europe continued to weaken
  • Weakening business conditions in Leather
  • Profitability maintained despite higher raw material prices and negative currencies

New Division Head Philippe Royer started July 1st

First Half Results 2007

Outlook

Backup

Financial results

Business review

Pigments & Additives

  • Solid growth with continued price pressure across most businesses
  • Coatings showed strong performance especially in the automotive and construction industries
  • Stable sales for Plastics
  • Challenging business conditions for printing ink pigments
  • Margins impacted negatively by FX, higher raw material costs and expected lower capacity utilisation

New Division Head Okke Koo started August 1st

First Half Results 2007

August 2, 2007 Slide 20

Masterbatches

  • Good growth with higher prices and volumes
  • Slowing demand in the plastics industry; packaging, resins and textiles developing well
  • Solid growth in Europe and Asia; US slowing down
  • Operational costs of accelerated integration of Ciba's masterbatches business fully realized; integration measures completed
  • Higher raw material costs impacting margins; clear improvements in Q2

Outlook

Backup

Financial results

Business review

Functional Chemicals

  • Good growth across several businesses; higher selling prices offset higher raw material costs
  • Oilfield Services and Agro products in particular saw good demand
  • Weak performance for Detergents and Specialty intermediates business
  • –Detergent business hit by higher raw material costs
  • – Increased competitive landscape for Intermediates
  • Both product-driven businesses reorganized as of August 1st

First Half Results 2007

Outlook

Backup

Financial results

Business review

Outlook for 2007 confirmed

Clariant anticipates a broadly stable macroeconomic climate, continued high raw material and energy costs and a stabilized exchange rate environment.

  • Higher sales in local currency terms
  • Increase in operating income before exceptionals from continuing operations; margins stable
  • Higher cash flow from operations before exceptionals
  • Improved recurring net income

First Half Results 2007

August 2, 2007 Slide 22

Confirming mid-term targets to achieve above average peer ROIC by end of 2009

Calendar of upcoming corporate events

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First Half Results 2007

Your Investor Relations contacts

Dr. Holger Schimanke

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First Half Results 2007

August 2, 2007 Slide 24

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

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.

First Half Results 2007

August 2, 2007 Slide 25

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.

Backup

First Half Results 2007

Outlook

Backup

Financial results

Business review

Second Quarter 2007 – Financial group figures

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i
t
t
s
c
o
n
n
u
e
o
p
e
r
a
o
n
s
S
l
a
e
s		 3
5		 1
1
2
N
l
f
d
i
i
d
i
t
t
t
e
o
s
s
r
o
m
s
c
o
n
n
u
e
o
p
e
r
a
o
n
s		 9
9
-		 1
0
5
-

First Half Results 2007

Financial results

Business review

Outlook

Backup

Second Quarter 2007 – Divisional sales and margins

S
d
Q
t
e
c
o
n
u
a
r
e
r
S
l
a
e
s		 i
i
**
E
B
I
T
D
A
M
%
a
r
g
n
n
C
H
F
m
n		 %
O
i
r
g
a
n
c
G
*
h
t
r
o
w		 C
%
L		 2
0
0
7		 2
0
0
6
T
i
l
L
h
P
C
h
i
l
t
t
&
e
x
e,
e
a
e
r
a
p
e
r
e
m
c
a
s		 6
1
8		 1
+		 1
+		 1
0.
8		 1
0.
3
i
d
d
i
i
P
t
A
t
&
g
m
e
n
s
e
s
v		 5
3
8		 1
+		 1
+		 1
1.
0		 1
6.
4
M
b
h
t
t
a
s
e
r
a
c
e
s		 3
6
3		 3
+		 1
0
+		 1
1.
8		 1
1.
6
F
i
l
C
h
i
l
t
u
n
c
o
n
a
e
m
c
a
s		 6
6
1		 5
+		 5
+		 8.
5		 9.
2
G
T
l
t
o
a
r
o
p
u		 2,
1
8
0		 3
+		 4
+		 9.
7		 9.
9

First Half Results 2007

August 2, 2007 Slide 28

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

Solid growth driven by volumes

Second Quarter 2007 versus Second Quarter 2006*

Second Quarter 2007 – Financial result

Key factors

Financial results

Business review

Outlook

Backup

S
e
c
o
n		 d
Q
t
u
a
r
e
r
2
0
0
7
C
H
F
m
n		 2
0
0
6
C
H
F
m
n
I
i
t
t
n
e
r
e
s
n
c
o
m
e		 6
+		 0
1
+
I
t
t
n
e
r
e
s
e
p
e
n
s
e
s
x		 2
9
-		 3
1
-
O
h
f
i
i
l
i
t
&
e
r
n
a
n
c
a
n
c
o
m
e
e
x
p
e
n
s
e
s		 1
-		 7
-
i
l
N
t
t
t
t
e
n
e
r
e
s
r
e
s
u		 2
4
-		 2
8
-
C
l
t,
t
u
r
r
e
n
c
y
r
e
s
u
n
e		 2
5
+		 3
+
l
f
i
i
l
l
T
t
t
o
a
n
a
n
c
a
r
e
s
u		 1
+		 2
5
-

First Half Results 2007

PRIMA, Continuous Improvement Process

Pipeline, incubators

Improvement Process

Service / product driven

Continuous

Product pruning

Site reduction

Planning

Supply chain improvement

Financial results

Business review

Outlook

Backup

Key targets: to achieve above peer average ROIC by end of 2009

First Half Results 2007

August 2, 2007 Slide 32

*Based on current environmentROIC calculated on after-tax basis

Businesses and market segments

First Half Results 2007

We have the right platform for our core focus

Po
i
t
ion
s
vs
bov
a
e
in
l
ine		 t
Gr
. cu
rre
n
ou
p
ave
rag
e		 C
t
r
r
e
n
u
k
t
m
a
r
e
i
i
t
p
o
s
o
n		 R
O
I
C		 G
h
t
r
o
w
i
l
t
t
p
o
e
n
a
be
low		 fu
t
tu
cu
rre
n
re
s C
i
t
o
a
n
g
s		 N
1
o.
s
e
t
v
n
i
it
e
d		 P
l
i
t
a
s
c
s		 T
3
o
p		 2-
3
%
m
d
g
A
i
P
&		 P
i
i
t
r
n
n
g		 N
1
o.
S
i
l
i
t
p
e
c
a
e
s		 S
t
T
3
e
g
m
e
n
o
p
s
l
a
l
a
n		 D
t
t
e
e
r
g
e
n
s		 T
3
o
p
c
o
i
ti
m
c
e
n
h
u		 P
f
C
h
i
l
e
r
o
r
m
a
n
c
e
e
m
c
a
s		 S
T
5
t
e
g
m
e
n
o
p		 4-
5
%
C
F		 C
h
i
l
P
r
o
c
e
s
s
e
m
c
a
s		 S
t
T
3
e
g
m
e
n
o
p
r
e
h
s
r
t
l
a
a		 T
i
l
t
e
x
e		 T
3
o
p
e
e
c
p
L
i
a
m
,
P
e
e		 h
L
t
e
a
e
r		 N
1
o.		 %
2-
3
l
h
&
ti
C
x
e
T		 P
a
p
e
r		 S
N
1
t
e
g
m
e
n
o.
B
M		 b
h
M
t
t
a
s
e
r
a
c
e
s		 N
1
o.		 %
4-
5

Key factors

Financial results

Business review

Outlook

Backup

First Half Results 2007

Outlook

Backup

Financial results

Business review

Top 5 products in percentage of total raw material costs

k
i
R
a
n
n
g		 d
P
t
r
o
c
u
1 E
h
l
O
i
d
t
&
y
e
n
e
x
e
-
2 i
l
V
t
t
n
y
a
c
e
a
e		 G
r
o
u
p
%
1
7
~		 T
l
t
o
a
3 P
l
h
l
t
o
y
e
y
e
n
e
4 T
i
i
D
i
i
d
t
a
n
m
o
e
u
x
5 A
l
t
c
r
y
a
e
s

First Half Results 2007

Divisional sales Full Year 2006 in end-user markets

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