Clariant AG — Investor Presentation 2000

Jul 31, 2000

First half results 2000 Operating statement
	First half 2000 in CHF mio	ROS in %	First half 1999 in CHF mio	ROS in %	Change in %
Textile, Leather & Paper Chemicals	165	12.7	127	11.3	+ 30
Pigments & Additives	200	18.4	132	14.1	+ 52
Masterbatches	68	11.4	65	12.4	+ 5
Functional Chemicals	97	10.3	107	11.8	– 9
Life Science & Electronic Chemicals	65	8.3	36	6.6	+ 81
Cellulose Ethers & Polymerisates	67	11.5	66	13.6	+ 2
Total Divisions	662	12.5	533	11.8	+ 24

Outlook
Textile, Leather & Paper Chemicals
l Second half 2000
Textile dyes: Good China business, especially with reactive dyes, expected. Capacity n reductions to continue
Textile chemicals: Continuation of first half development n
Leather: Business to improve seasonally (e.g. winter fashion production), prices n approximately stable
Paper: Continuation of first half trends expected; stabilization of margins n
l Outlook into 2001
Textile dyes: More optimism with regard to volumes and margins. Capacity utilization n will increase
Textile chemicals: Growth should continue n
Leather: First "soft" and "hard" synergies from BTP to be expected. Opportunity to n increase prices
Paper: Capacity utilization to remain high; US market expansion targeted n
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First half results 2000
Pigments & Additives
l Pigments Volumes generally good, slightly slower business for the car industry n Pricing: selective increases in Europe n US demand for high performance pigments for housing paints is very strong n Pigments for non-impact printing with excellent growth n High outlet of pigment preparations n
l Ink Pigments Pricing on average stable n Strong business in high performance pigments for decor printing and yellow pigments n for offset printing Moderate US business n Improved product mix and value-wise improved capacity utilization achieved n
l Additives Good product range and business in flame retardants and waxes n Polymer additives and light stabilizer business at low levels n 9

First half results 2000
Masterbatches
l Sales development overview Sales in Europe good, in Asia very good; especially strong performance of plastics n
industry in South Europe
North America sales overall o.k.; car business reflects signs of slowdown since n second quarter 2000
Personal care packaging and new office machine business remained strong n
l Operating margin reduced, Return on net assets (Rona) ~ stable
Higher raw materials prices (e.g. polyethylene, polypropylene) n
Product mix: n
l Weaker high-margin PET black fiber business for textile fibers spin dyeing due to technical problems and new local, asian competitor
l More white masterbatches business in Italy (instead of coloured masterbatches)
Selective price increases realized n
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First half results 2000
Functional Chemicals
l Detergents Portfolio streamlining leads to significant lower sales and operating profit n Increased raw materials costs, especially ethylene derivatives and fatty alcohols n l Performance Chemicals New product for hair rinses allowing easy combing successfully launched n Good demand for skin-sedative products used in deodorants and suncreams n Emulfisiers for crop protection with weak results due to reduced demand n Continued growth for chemical-mechanical polishing agent Klebosol® n l Service & Process Chemicals Oilservice business suffered from loss of a contract, but new contracts underway n Metalworking with positive development in Europe and US n l Biocides
Strong sales into surface coatings sector and personal care sector n Successful customized tailor-made solutions n Resurgence of activity in Asia n	13

Outlook
Functional Chemicals
l Second half 2000 Another ~ CHF 50 mio of sales will be eliminated n Shut down of sulfonation plant n Further expansion of Klebosol® business n Taking advantage of good position in Mexico after Christianson add-on n Price increases due to higher raw material costs n 2000 will be a transition year due to portfolio streamlining n
l Outlook into 2001 Plant for future-oriented specialties for the detergent and consumer care n industry will go onstream Introduction of attractive new products for washing systems n Good business for Performance, Service & Process Chemicals expected n Exploit growth opportunities for biocides through leveraging Clariant's global n sales network, customer relationships and technology platform	14

Half Year Results 2000

First half results 2000
Life Science & Electronic Chemicals
l Electronic Materials n Upswing in Asia continued unbated, especially flat panel business. US business now clearly improves n Double-digit volume growth, price pressure decreased n Deep UV photoresists successfully introduced in Asia n Anti reflective coatings (for optimal application of advanced photoresists) showed strong development n New site in Branchburg/USA is operational
l Life Science Molecules n Agro market under pressure. Postponed sales n Glyoxal and derivatives are doing fine n Pharma intermediates: Pipeline strong, sales satisfiying but also some postponed sales with strong peak potential
l Specialty Intermediates n Good volumes in intermediates for detergents and cleaning agents n Low margin, commodity-type businesses with unfavourable overcapacities	15

Clariant Investor Relations August 29th, 2000 Rothausstrasse 61 4132 Muttenz 1 Switzerland

First half results 2000
Cellulose Ethers & Polymerisates
l Cellulose Ethers / Emulsion powders Good sales development in Europe, other regions stable to higher sales n Operating margins of BU improved significantly n Cellulose ethers were able to achieve much better results after successful solution of n problems in a new plant which came onstream in 1999
l Emulsions Volumes increased in line with generally positive market development n Price increases but with delay in timing and magnitude (vs raw material increase) n Sales in Europe and Asia much higher, in South America also higher n Raw material price increases heavy (e.g. VAM) ‡ result: significant margin squeeze ! n
l PVA/PVB Raw material price increases heavy (e.g. VAM) ‡ result: margin squeeze ! n Sales in Europe higher n
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Profit & loss statement first half 2000, part I
	in CHF mio	1st half 2000 ROS in %	in CHF mio	1 1st half 1999 ROS in %
Sales	5 295		4 577
Cost of goods sold	– 3 421		– 2 963
Gross profit	1 874	35.4	1 614	35.3
Marketing and distribution	– 754		– 662
Research and development	– 202		– 171
Income from associated companies	26		28
Administration and general overhead costs	– 329		2 – 281
Operating profit before GWA	615	11.6	528	11.5
Goodwill amortization	– 52		– 5
Operating profit	563	10.6	523	11.4
Depreciation, amortization	314		257
EBITDA	877	16.6	780	17.0

Profit & loss statement first half 2000, part II
	in CHF mio	1st half 2000	ROS in % in CHF mio	1 1st half 1999 ROS in %	Change in %
Operating profit	563	10.6	523	11.4	+ 8%
Financial result	– 147		– 95
Taxes	– 130		– 148
Minorities	– 5		– 3
Net profit after minorities	281	5.3	277	6.1	+ 1%
Earnings per share	19.48		19.38		+ 1%
	Cash EPS shows substantial improvement
Net profit	281		277
Goodwill amortization	52		5
Cash earnings	333		282
Cash EPS	23.07		19.77		+ 17%
1 Restated

Balance sheet Amounts in CHF mio 1 30.06.2000 31.12.1999 30.06.2000 31.12.1999 Tangible fixed assets 4 508 4 059 Equity 2 946 Intangible assets 2 884 160 Minority interests 106 Financial assets 983 1 013 Total long-term assets 8 375 5 232 Inventories 2 413 2 083 Financial debt 6 399 Accounts receivable 1 848 1 810 Other 4 107 Other current assets 522 439 Total liabilities 10 506 Cash 400 824 Total current assets 5 183 5 156
						1
						2 773
						106
						3 603
						3 906
						7 509
	Total assets	10 980 13 558	10 209 388	Total equity & liabilities	13 558	10 388