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Clariant AG

Investor Presentation • Nov 7, 2007

856_ip_2007-11-07_f0183c9d-421b-4ac3-8eb7-330a03488d79.pdf

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Nine Month Results 2007

Strategy Execution Gathering Speed November 7, 2007

Contents

K
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Nine Month Results 2007

Third Quarter 2007 – Key financials

2007 2006

21.1%

5.8%

266

+2% +6%

All figures continuing operations; in CHF mn

Nine Months 2007 – Key financials

All figures continuing operations; in CHF mn

Pricing initiatives showing positive trend in Third Quarter

Ke
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Re
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20
07
on
su

Nine Months 2007 – Cash flow

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  • Focus on cash flow generation starts to pay off
  • Lower inventories and trade receivables
  • Further measures to reach industry average net working capital on track

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

November 7, 2007 Slide 8

Nine Month Results 2007

Nine Months 2007 – Financial result

Key factors

Financial results

Business review

Strategy update

Outlook

Backup

2007 2006CHF mn CHF mnInterest income +19 +24Interest expenses -83 -86 Other financial income & expenses -9 -13 Net interest result -73 -75Currency result, net +11 -5 Total financial result -62 -80

Nine Months

  • Stable interest expenses thanks to strong cash flow generation and net debt reduction in the Third Quarter
  • Total financial result still helped by currency movements, unfavorable in the Third Quarter

Nine Month Results 2007

Debt maturity profile on September 30, 2007

Financial results

Business review

Strategy update

Outlook

Backup

Nine Months 2007 – Divisional sales and margins

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Nine Month Results 2007

November 7, 2007 Slide 11

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

Financial results

Business review

Strategy update

Outlook

Backup

Nine Month Results 2007

Mixed business developments in Third Quarter 2007

Textile, Leather and Paper Chemicals

  • Product prices stabilized, accepting lower sales
  • Flat sales in Textiles
  • Demand for Paper chemicals in particular for OBAs started to ease
  • Market demand in Leather continues to decline
  • Profitability declined mainly due to higher raw material prices and adverse FX developments

Pigments & Additives

  • Continuous price pressure compensated by initiatives to raise prices
  • Strong demand for Coating and Special Industries products
  • Demand in the Plastic Business started to ease in difficult environment
  • Competition remained challenging in the Printing Industries especially for publication print products
  • Increasing raw material costs as well as negative FX affected margin adversely
Ke
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Mixed business developments in Third Quarter 2007

  • Slowing demand across the plastic industry
  • Sales in US at previous-years level, solid in Asia
  • Demand in Europe starts to slow after strong sales compared to a year earlier
  • Divestment of business in Australia resulted in slower growth
  • Price increases offsetting higher raw material costs
  • Profitability mainly impacted by integration of CIBA Masterbatch business

Functional Chemicals

  • Strong demand across most businesses
  • Oil Services and crop protection saw strong demand
  • Weakening sales in Specialty Intermediates
  • Detergents saw declining sales with higher prices
  • Higher selling prices not offsetting steep rise in raw material cost
  • Acquisition of Toschem in Columbia
  • Implementation of product-driven business Detergents & Intermediates on track

Nine Month Results 2007Key factors Financial resultsBusiness reviewStrategy update OutlookBackup

Strategy implementation gathering speed

  • Target to reach 10% site network optimization on track
  • Measures to reduce SG&A costs by 1-2% on track
  • Product pruning by 20% achieved
  • Closures of several service labs well advanced
  • Adjusting operational structure headquarter streamlined by 100 jobs
  • Pigment & Additives adopting cost leadership strategy
  • Adopting corporate strategy at Divisional level
  • P&A, FUN and TLP divisions are reviewing strategic options for selective units
  • Initiatives to increase prices will be further implemented
  • Measures to further improve cash flow underway

Focus on Execution

Sizable site closures announced

Key factors

Financial results

Business review

Strategy update

Outlook

Backup

Product site optimization 4 site closures done in MB

3 sites sold in MB

  • 1 site closed in FUN & TLP each
  • TLP site closure in UK announced
  • P&A site closure in US announced
  • MB site closure in Mexico announced
  • CHF 120 mn costs booked
  • Further costs to be booked till year-end

Nine Month Results 2007

November 7, 2007 Slide 15

Approx. CHF 250 mn restructucturing costs in line with strategic goals

Financial results

Business review

Strategy update

Outlook

Backup

Outlook for 2007

For the Full Year Results 2007 Clariant expects:

  • Higher sales in local currency terms
  • Operating income before exceptionals from continuing operations to be at approx. CHF 530 mn, as increase of raw material and energy costs and a continued unfavorable exchange rate environment will not be offset by higher selling prices
  • Significant improvement in cash flow from operations before exceptionals
  • Recurring net income at previous year level

Nine Month Results 2007

November 7, 2007 Slide 16

Confirming mid-term targets to achieve above-average peer ROIC by 2010

Calendar of upcoming corporate events

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Nine Month Results 2007

Your Investor Relations contacts

Dr. Holger Schimanke

Head Investor Relations

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Nine Month Results 2007

November 7, 2007 Slide 18

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

Backup

Nine Month Results 2007

Financial results

Business review

Strategy update

Outlook

Backup

Nine Months 2007 – Financial group figures

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Nine Month Results 2007

Financial results

Business review

Strategy update

Outlook

Backup

Third Quarter 2007 – Financial group figures

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-

Nine Month Results 2007

Third Quarter 2007 – Financial result

Key factors

Financial results

Business review

Strategy update

Outlook

Backup

h
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Nine Month Results 2007

Financial results

Business review

Strategy update

Outlook

Backup

Third Quarter 2007 – Divisional sales and margins

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3

Nine Month Results 2007

November 7, 2007 Slide 24

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

Financial results

Business review

Strategy update

Outlook

Backup

Textile, Leather & Paper Chemicals in Nine Months

  • Stable growth with some slowdown in volumes
  • Latin America was main growth driver; Europe and US flat
  • Stable demand for textiles; price increases achieved in Q3
  • Paper had good growth in OBA; market beginning to saturate, solid demand across all businesses
  • Leather experienced overall market slowdown - wet end chemicals in particular, solid demand for finishing chemicals
  • Higher raw material costs and negative FX movements affect profitability
  • Co-operation agreement signed with a Swiss company to market Nano finishing technology

Nine Month Results 2007

Financial results

Business review

Strategy update

Outlook

Backup

Pigments & Additives in Nine Months

  • Solid growth with easing price pressure for most businesses
  • Growth strong in Asia, Latin America and Europe, weak in US
  • Coatings and Specialty Industries showed strong demand
  • Stable sales for Plastics with some signs of slowdown
  • Printing Ink Pigment still facing stiff competition from Asia
  • Increasing raw material costs as well as negative FX affected margin adversely

Financial results

Business review

Strategy update

Outlook

Backup

Masterbatches in Nine Months

  • Solid demand in the plastics industry but slowdown in Q3
  • Solid growth in all regions except North America
  • Growth in Europe softening after good 1st Halfyear; strong in Asia and Latin America
  • New production plant in Thailand completed
  • Successful divestment of activities in Australia (2% of sales)
  • Higher raw material costs compensated by price increases
  • Weaker operating result due to higher operating costs for Ciba MB integration

Financial results

Business review

Strategy update

Outlook

Backup

Functional Chemicals in Nine Months

  • Strong demand across most businesses; further price increases
  • Sales of Process Chemicals continue to rise; Oil Services and Metal Working enjoyed strong demand
  • Solid growth for Performance Chemicals; good demand for Crop Protection, stable for Personal Care
  • Slowdown in volumes for Detergents across all regions; further price increases announced
  • Weakening sales in Specialty Intermediates
  • Set-up of new product driven business Detergents & Intermediates to be effective as of 1st Jan 2008
  • Profitability affected due to steep rise in raw material prices
  • Acquisition of leading supplier in Oil Services in Columbia

Nine Month Results 2007

Financial results

Business review

Strategy update

Outlook

Backup

Top 5 products in percentage of total raw material costs

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Nine Month Results 2007

Divisional sales Full Year 2006 in end-user markets

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.

Nine Month Results 2007

November 7, 2007 Slide 32

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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