Media Release - Clariant

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amortization charges and the cost-savings measures the company initiated in the second quarter. In addition to the restructuring charges of CHF 142 million reported in the half-year results, further restructuring charges of CHF 43 million were incurred in the third quarter for the closure of four agrochemical plants (Life Science & Electronic Chemicals Division) and one production facility for hydrosulfite (Textile, Leather & Paper Chemicals Division). After restructuring charges, EBIT amounted to CHF 297 million. The net loss year-to-date fell to CHF 11 million because of a net profit of CHF 38 million delivered in the third quarter of 2003. Positive cash flow trend Operating cash flow increased by CHF 217 million in the third quarter because of a reduction in current assets. Following negative operating cash flow of CHF 53 million after six months, operating cash flow was positive after nine months, at CHF 164 million. As a result, Clariant was able to reduce its net debt to below CHF 3.5 billion. Equity remained virtually unchanged compared with June 30, 2003 at CHF 1.015 billion. CEO Roland Lösser said: "The cash flow and EBIT trends are the first signs that the measures we have taken are beginning to take effect. The earnings situation makes it clear, though, that the cost-cutting measures announced as part of the Transformation Program are absolutely necessary." Transformation drive on course As Clariant reported yesterday, the sale of Cellulose Ethers marks a first milestone in the disposal program it had previously announced. The projects in the first phase of the Clariant Performance Improvement Program have started up. The aim is to achieve cost savings in the coming year of at least CHF 100 million. "The transformation drive is making good progress,” Mr. Lösser said. “We can confirm our target of reducing net debt by Spring to below CHF 2.5 billion and improving EBIT by CHF 400 million in the next three to four years. We will thus raise our return on capital to over 12%." Cautious outlook Given the uncertain economic situation, Clariant confirms the cautious outlook for fiscal 2003. CEO Roland Lösser stated the following guidance: "We expect that our sales in 2003 will be at about the same level as the previous year in local currencies and we are projecting a net profit for fiscal 2003." You can find detailed information on the quarterly result and the divisions, including tables, on the Internet at www.clariant.com/investors. 2
KEY FINANCIAL GROUP FIGURES (in million CHF) 9 months 2003 compared with 9 months 2002 (unaudited, numbers rounded off) Nine months in million CHF 2003 2002 reported 2002, proforma* Change in % CHF LC 2003 reported compared with 2002 pro-forma Sales 6 402 7 121 6 727 -5 +1 Gross profit 2 062 2 391 2 263 -9 -5 EBITDA 696 893 835 -17 -13 EBIT before restructuring and impairment 482 513 471 +2 — EBIT 297 513 471 -37 -37 Net income / -loss -11 184 142 — — 3 rd quarter 2003 compared with 3 rd quarter 2002 (unaudited, numbers rounded off) 3 rd quarter 2003 in million CHF 2003 2002 reported 2002, proforma* Change in % CHF 2003 reported compared with 2002 pro-forma Sales 2 129 2 282 2 143 -1 Gross profit 650 740 698 -7 EBITDA 183 260 243 -25 EBIT before restructuring and impairment 127 139 128 -1 EBIT 84 139 128 -34 Net income / -loss 38 39 — — * The numbers for 2002 were restated to account for the disposals of business activities in 2002. Disposals in 2002: Emulsion Business of Division Textile, Leather & Paper Hydrosulfite North America of Division Textile, Leather & Paper Emulsion Business Portugal of Division Textile, Leather & Paper All activities were sold effective as per the end of 2002 as per September 2003 June 2003 March 2003 Net debt 3 487 3 686 3 665 Equity 1 015 1 061 947 3
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Media Release - Clariant

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