S

Sustain,
i Improve,
I Create
C Value
V l
Financial Strength

Patrick Jany, CFO

Capital Markets Day, London – 7 June 2011

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.)
Agenda

Build-up of Financial Strength

Sustainability of Financial Performance
Süd Chemie Acquisition
Süd-Chemie
Drivers of Future Value Creation
Outlook

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Slide 2/23
Agenda

Build-up of Financial Strength

Sustainability of Financial Performance
Süd Chemie Acquisition
Süd-Chemie
Drivers of Future Value Creation
Outlook

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Slide 3/23
Clariant roadmap – profitable growth
on a solid base

2009 2010 2011 2012

c Restructuring Laying the foundation

„ Cash generation
„ Cost cutting Implementation of restructuring
Cost foccus

„ Complexity reduction
Result: Establish a solid base for profitable growth

d Continuous improvement Sustainability of value

„ Clariant Excellence pprogram
g
Continuee program/
Contin
– Operational Excellence – People Excellence
Sustain achievements
– Commercial Excellence – Innovation Excellence
Result: Sustainable productivity improvement
us
Portfolio focu

e Profitable growth Value creation

„ Improve profitability of existing portfolio
„ R&D and Innovation
„ Growth in emerging markets
„ S
Strengthen
h portfolio
f li bby selective
l i acquisitions
i ii
Result: Growth of profitable business portfolio

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Build-up of Financial Strength Slide 4/23
Performance has reached new levels

Cash* in CHF million ROIC in %

20
1 500
1 419 15 18.1
1 000
1 140 10
500
634 5 8.3 7.8 9.0
443 356 57
5.7
0 0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

NWC in % of sales EBIT margin** in % of sales

30 15

20
28.3 25.5 10
23.8 21.1 9.8
10 15.9 5 73
7.3 6.3 66
6.6
0 0 4.1
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

„ Clariant has achieved target

g of above ppeer ggroupp average g ROIC byy yyear-end 2010 with 18.1% vs 13.9%
„ Next steps for 2011-15: sustainability of financial achievements and further value creation
* including current deposits ** before exceptional items

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Build-up of Financial Strength Slide 5/23
Agenda

Build-up of Financial Strength

Sustainability of Financial Performance
Süd Chemie Acquisition
Süd-Chemie
Drivers of Future Value Creation
Outlook

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Slide 6/23
Value-based performance management anchored
in the organization

Guiding Principle
G
Generating
ti llong-term
t value
l ffor allll stakeholders,
t k h ld
reflected in share price appreciation and a sustainable payout to shareholders

Value-based
Value based performance CLN Excellence Information tools & systems
management
„ Clearly defined key quantitative „ Key factor to improve process „ Management of the group based on
performance indicators defined at efficiency, permanent improvement, “real-time” global and consolidated
all levels of the organization,
organization based and foster behavioral change: financial information
on consolidated data: – Operational Excellence „ Transparency within the group is
– Group: ROIC and Cash – Commercial Excellence based on SAP and centralized IT
– Business Units: EBIT, NWC, – People Excellence platforms – management
Cash – Innovation Excellence information system as a worldwide
“one-figure environment”
EBIT bei ROS NWC % of sales
Additives X% X%
D&I X% X%
Emulsions X% X%
ICS X% X%
Leather X% X%
Masterbatches X% X%
OMS X% X%
Paper X% X%
Pigments X% X%
Textiles X% X%

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Sustainability of Financial Performance Slide 7/23
Strong focus on financial performance and
disciplined fund allocation

Guiding Principle
St
Strong commitment
it t tto achieving
hi i andd maintaining
i t i i
a conservative financial profile, in line with an investment-grade rating.
Balance Sheet is therefore geared to strong ratios/investment grade
Shareholder pay
pay-out
out part of value proposition Disciplined allocation of funds for investments into
profitable growth

„ Intention to resume dividend payments for 2011 as „ Competition among Business Units for capex
criteria will be met (company profitable and earning cost and add-on acquisitions
of capital)
„ Priority for growth investments to highest
„ Current policy of stable dividend (through “par value return projects (ROIC increasing)
reduction” and/or “payout from agio”) in the range of
25-35%
25 35% of recurring income „ Add-on acquisitions accretive in year one (Octagon,
Prairie Petro-Chem, Italtinto)

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Sustainability of Financial Performance Slide 8/23
Example of financial discipline – credit rating
situation post Süd-Chemie

„ Rating trend clearly up due to:

– Own continued strongg operating
p g pperformance improvement
p and deleveraged
g balance sheet
– High quality of acquired Süd-Chemie portfolio
– Convincing financing structure/execution of moderate/conservative financial policy

„ Standard & Poor’s: long-term rating BBB-, outlook negative

– Clariant's rating always within investment grade range

„ Moody's: long-term rating Ba1, outlook positive

– Improved outlook to "positive" triggered by all above-mentioned factors

„ Süd-Chemie debt to be refinanced in due course addressing "structural subordination”

Süd-Chemie acquisition supports Clariant’s rating route & aspirations

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Sustainability of Financial Performance Slide 9/23
Net debt will be reduced quickly in order to keep
financial flexibility

■ Stepwise refinancing of debt to achieve a solid maturity profile

■ Substantial combined free cash flow generation ensures solid ratios and a rapid de
de-leveraging
leveraging
■ Financial headroom preserved and rating supportive

Debt maturity profile as per mid-May 2011, approximations Unadjusted Net Debt / EBITDA1

Maturities of financial debt in CHF million

1000 2.0x
17
1.7
800 4
700 1.5x
to
800 1.2
600 1.1
1.0x
08
0.8
NWC financing
fi i
400 766

43 0.5x
200 127
249 273 0.1
130 150 100
0 1 0
New debt 2011 2012 2013 2014 2015 2016 2017 2009A 2010A 2011E 2012E 2013E

1 Combined EBITDA numbers include gross synergies in 2012 and 2013; EBITDA before exceptional items (e.g. restructuring expenses of Clariant and integration costs of Süd-Chemie)

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Sustainability of Financial Performance Slide 10/23
Agenda

Build-up of Financial Strength

Sustainability of Financial Performance
Süd Chemie Acquisition
Süd-Chemie
Drivers of Future Value Creation
Outlook

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Slide 11/23
Summary Süd-Chemie transaction

■ On 21 April 2011, Clariant acquired a 96.15% stake in Süd-Chemie for an equity

value
a ue oof C
CHF 1.88 bbillion
o aandd a tota
total co
consideration
s de at o oof C
CHF 2.4 billion
b o ((including
c ud g debt);
values the company at 8.8x EV/EBITDA 2010*
■ After approval of the AGM, the successful at market rights issue increased the
number
b off registered
i t d shares
h tto 295 751 085 (increase
(i off 42 575 085 to
t ffamily
il
shareholders, 23 016 000 in public offering)
■ Of the total equity consideration of 1 786 million, CHF 756 million was paid via share
exchange, CHF 368 million by share issuance and CHF 662 million through use of
available cash
■ After expiration
Aft i ti off mandatory
d t offer
ff on June
J 14,
14 a squeeze-outt procedure
d will
ill bbe
started if necessary
■ Transaction executed as planned, on time, with a solid financing
* exchange rate EUR/CHF 1.38, as reported 2010 Süd-Chemie EBITDA

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Süd-Chemie Acquisition Slide 12/23
Süd-Chemie integration approach – four main
workstreams
2011 2012 2013
Workstream J F M A M J J A S O N D J F M A M J J A S O N D J F M A M
1 Integration management
office Prepare Steer overall process (incl. communication and tracking)

2 Governance
• Integrate overall organization,
and structural Pre- processes, governance
integration pare • Ensure compensation/benefits
integration

3 G&A integration …
and synergies IT
HR
Synergies Pre- Finance
pare
Design future
organization Implement

Integrate IT platforms

4 Functional Excellence EMEA team

CPS
ClariantAmericas
Production System (CPS) Asia-Pacific team
team

Cl i C
Clariant Commercial
i lEExcellence
ll (CCE)

Clariant Supply Chain System/Net Working Capital (CSS/NWC)

Functional Pre-
Excellence pare
LeanSigma

C
Capex containment
t i t

Footprint analysis

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Süd-Chemie Acquisition Slide 13/23
Expected synergies from G&A, functional excellence
and tax savings

„ Synergies from G&A functions of approx. EUR 25 mn annually estimated – combination of

headquarters & regional/country organizations
„ Functional excellence improvement potential estimated at ~EUR 50-70 mn annually
(Operational Excellence, Commercial Excellence and Innovation Excellence)
„ Reduction of tax rate from 37% to approximately 25% through usage of Clariant structures
(hubs, financing)
„ Total integration costs of approximately EUR 160 mn (2011-13)

Source: Integration team

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Süd-Chemie Acquisition Slide 14/23
Clariant & Süd-Chemie – good results for both
companies in 2010

FY 2010 FY 2010
Clariant stand-alone Süd-Chemie stand-alone*
CHF mn EUR mn

Sales 7 120 Sales 1 225

EBITDA before
b f exc. items
it 901 EBITDA before exc.
exc items 206

- margin 12.7% - margin 16.8%

EBIT before exc. items 696 EBIT before exc. items 140

- margin 9.8% - margin 11.4%

ROIC before exc. Items 18.1% ROIC 9.1%

Net debt 126 Net debt 383

* results of Süd-Chemie include one-time gains from the establishment of the ASK JV with Ashland as of December 2010
Source: Clariant Annual Report 2010, Süd-Chemie Annual Report 2010

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Süd-Chemie Acquisition Slide 15/23
Consolidation of Süd-Chemie – implies change
in reporting and consolidation criteria

From six Süd-Chemie segments… … to two Clariant Business Units and

one equity holding (JV)
Sales 2010 in EUR million Sales 2011e in CHF million,
Süd-Chemie consolidated for ~8 months (as of April 21)
Catalytic Technologies 444
Catalyssts

Business Unit
Catalysts & Energy approx. 500
Energy and Environment 60

Adsorbents and Additives 303

Business Unit
Performance Packaging 127 approx. 500
Adsorbeents

Functional Materials

Catalytic Technologies 84

Foundry Products and ASK Chemicals JV

207 at equity consolidation 0
Specialty Resins

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Süd-Chemie Acquisition Slide 16/23
Clariant & Süd-Chemie combined pro forma
P&L statement – guidance 2011
Sales 2011e in CHF million,
Clariant/Süd-Chemie combined Süd-Chemie consolidated for
~88 months (as of 21 April)
Sales (CHF mn) 7 800 – 8 000
EBITDA before exc. items (CHF mn) 1 050 – 1 150
- margin (% of sales) 13.5% – 14.5%
EBIT before exc. items (CHF mn) 800 – 850
- margin (% of sales) 10 0% – 11.0%
10.0% 11 0%
ROIC (%) approx. 10%
Net debt (CHF mn) approx. 1 700

„ Change from quota consolidation to at equity consolidation (esp. ASK Chemicals JV) affecting approx. CHF 270 mn
less sales when consolidated as of April 21 (participation income in EBIT)
„ Goodwill and other intangibles of approx. CHF 1.4 bn
„ Subject to further alignment of accounting policies and purchase price allocation

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Süd-Chemie Acquisition Slide 17/23
Agenda

Build-up of Financial Strength

Sustainability of Financial Performance
Süd Chemie Acquisition
Süd-Chemie
Drivers of Future Value Creation
Outlook

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Slide 18/23
Further value creation driven by …

… operational excellence
– further performance improvement of the 10 BUs in terms of EBIT/EBITDA and NWC

… value-adding M&A-activities
– Süd-Chemie growth and EBITDA, improvement in terms of ROIC

… focus group on innovation and growth

– increased communication of value of existing portfolio

… return to shareholders…
– increased cash flow generation allows to combine investment grade rating and shareholder
payout

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Drivers of Future Value Creation Slide 19/23
… and further increasing efficiency

Capex in % of sales* Tax rate*

~5% ~5% ~30%

~4% ~25%

2011E 2012E 2013E 2014E 2015E 2011E 2012E 2013E 2014E 2015E

Capex 2011/12 approx. CHF 380-420 million per year Tax rate approx. 30% in 2011, approx. 25% in 2015

Net Working Capital in % of sales* Restructuring/integration costs*

<20% app. app.

CHF CHF
<19% app.
app
150 150
CHF ≤1%
mn mn
100 of
mn sales
2011E 2012E 2013E 2014E 2015E 2011E 2012E 2013E 2014E 2015E

NWC below 20% in 2011, below 19% in 2015 Restructuring and integration costs 2011/12 approx.
CHF 300 mn in total, ≤1% of sales by 2015
* all estimates for combined entity

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Drivers of Future Value Creation Slide 20/23
EV/EBITDA – combined Clariant/Süd-Chemie
trading at discount to sector

EV/EBITDA Enterprise Value

9
8.3x
Clariant year-end 2010
8
„ CHF 5.1 billion
7 6.5x

6 5 7x
5.7x Clariant/Süd-Chemie
Clariant/Süd Chemie
combined
5
„ CHF 7.2 billion

4
CLN stand-alone CLN/SC combined Chemicals sector
(year-end 2010) average*
Data as of 31 May 2011 if not otherwise indicated

* Chemicals sector index: BEUCHEM Index (Bloomberg European Chemicals Index)

Source: Bloomberg, CLN/SC combined EV/EBITDA based on midpoint of 2011E EBITDA of CHF 1.1 bn

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Drivers of Future Value Creation Slide 21/23
Agenda

Build-up of Financial Strength

Sustainability of Financial Performance
Süd Chemie Acquisition
Süd-Chemie
Drivers of Future Value Creation
Outlook

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Slide 22/23
Clariant 2015

2010 2015

Sales (in CHF) 7.1 bn > 10 bn

EBITDA* (in CHF) 901 mn > 1.7 bn

EBITDA* margin
g (%) 12.7% > 17%

ROIC sustainably above peer group average

Based on assumption of a moderate global GDP growth and stable exchange rates

* before exceptional items

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.) Outlook Slide 23/23
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,
i l suchh as ffuture
t market k t conditions,
diti currency flfluctuations,
t ti th
the bbehavior
h i off other
th market k t
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 terms, or at all
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
l any revisions
i i tto th
these fforward-looking
d l ki statements
t t t tto reflect
fl t events t or circumstances
i t
after the date of these materials.

Capital Markets Day, London – 7 June 2011, Patrick Jany (Copyright Clariant. All rights reserved.)