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Clariant AG

Investor Presentation • Jun 5, 2008

856_ip_2008-06-05_c81edbe6-b3ba-4343-a085-f8ec9451531f.pdf

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4th Swiss Small-Mid Cap Conference Berenberg Bank, Brocket Hall, June 5, 2008

Patrick Jany, CFO

Agenda

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Textile, Leather & Paper Chemicals Pigments & AdditivesMasterbatches Functional ChemicalsEBITDA split (Q1 2008) 17%33%16%34%Sales split (Q1 2008) 24%25%16%35%Textile, Leather & Paper Pigments & Additives MasterbatchesFunctional ChemicalsBusinesses and market segments

Customer structure – serving a broad range of end users

Clariant 2010

Our view of Clariant in 2006

Key target – achieving above peer average ROIC by end of 2010

ROIC calculated on after-tax basis *Based on 2006 environment

How to get there – strategy defined in 2006

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Implementing change – creating sustainable profitability

Strategy update

Example of new structure – Division Functional Chemicals

First quarter 2008 result

First Quarter 2008 – Highlights

  • Sales up 3% in local currency and down 2% in CHF due to currency effects
  • Price increases of 4% fully compensate for a 9% increase in raw material costs
  • Operating margin before exceptionals rises to 7.9% from 7.1% in Q1/2007
  • Cash flow from operations of CHF -6 million due to seasonal effects
  • Full Year outlook unchanged

Committed to achieving our targets

Gross margin development and raw material inflation

3.3%

Delta Gross Margin Raw Material price increase

4th Swiss Small-Mid Cap Conference, Berenberg Bank, Brocket Hall, June 5, 2008 Slide 16

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

Calendar of upcoming corporate events

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

Backup slides

First quarter 2008 – Key financial group figures

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* organic growth: volume and price effects excluding the impact of changes in foreign currency exchange rates and acquisitions/divestitures

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

Sales and EBITDA margins by divisions – first quarter 2008

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* before exceptional items

4th Swiss Small-Mid Cap Conference, Berenberg Bank, Brocket Hall, June 5, 2008 Slide 24

Solid sales growth with strength in Asia

Sales first quarter 2008 CHF 2.112 billion, +3% in local currencies

Divisions Textile, Leather & Paper / Pigments & Additives

  • Weak end-user demand for textiles in the US weighed on worldwide textile markets
  • High impact of raw material costs on Paper business
  • Robust demand for chemicals for leather finishing
  • "Low-cost focus" strategy implemented
  • Substantial price increases achieved

  • Selby production plant closure proceeding as planned

  • Higher prices fully offset increased raw materials costs

  • Operating income margin considerably improved on lower SG&A
  • Demand for Coatings products high: Brazil, China and India
  • Good growth in volumes and prices in Plastics, Publication Inks and Specialities, but at different levels
  • JV with Chinese partner Zhejiang Baihe to strengthen market position

Divisions Masterbatches / Functional Chemicals

  • Restrained demand in the first quarter
  • Sales in the US declined particularly in the housing and automotive industry
  • Sales in Europe developed slightly negative
  • Good sales growth in Asia and Latin America

  • Selective price increases enforced to offset rise in raw material costs

  • Price increases compensated for higher raw material costs

  • Differentiated pricing strategies implemented
  • Strong improvement in profitability
  • Further market share gains in the US
  • Detergents & Intermediates recovered from low level
  • De-icing profited from favorable weather conditions
  • Strong demand for Crop Protection products

Operating income margin significantly improved

  • Price increases of 4% compensate for a 9% increase in raw material costs
  • Gross margin recovered to 30.5% from 27.8% in Q4/2007
  • Sales, General and Administration costs declined to 20.7% from 21.8% in Q1/2007
  • Operating income margin before exceptionals rises to 7.9% from 7.1% in Q1/2007
  • Currency related impact on operating income of CHF 36 million

Cash flow and financial result

  • Lower cash flow from operations:
  • Seasonally higher inventories
  • Reduced trade payables
  • CHF 384 million bond repaid
  • Net debt unchanged
  • Financial result impacted by foreign exchange losses of CHF 44 million
  • Net interest result improved by CHF 7 million – optimized mix of net debt positions

Debt maturity profile on March 31, 2008

in CHF million

*including short term deposits (90-365 days)

4th Swiss Small-Mid Cap Conference, Berenberg Bank, Brocket Hall, June 5, 2008 Slide 30

Cash flow first quarter 2008

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Financial result first quarter 2008

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Sales and cost structure year end 2007

These distributions represent an approximation to total cash in- and outflows and are closely linked to transaction exposures

Divisional sales Full-Year 2007 in end-user markets

Continuing operations

4th Swiss Small-Mid Cap Conference, Berenberg Bank, Brocket Hall, June 5, 2008 Slide 34

Top 5 products in percentage of total raw material costs

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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.

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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