Quarterly Results Operationally on track, S

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Clariant International Ltd <strong>Quarterly</strong> <strong>Results</strong> 31 October 2011 Page 4 of 14 Süd-Chemie delivers, integration on track In the first full quarter of consolidation into Clariant, the two new Süd-Chemie Business Units – Catalysis & Energy and Functional Materials – developed according to plan, with the Catalysts business picking-up in the third quarter as expected. Catalysis & Energy reported an EBITDA before exceptionals of CHF 41 million (margin 21.6%), and Functional Materials CHF 18 million (margin 10.8%). The integration of Süd-Chemie is progressing as planned with all project teams fully operational. Based on current insights and integration experience, the anticipated EUR 75-95 million EBITDA improvements to 2013 are confirmed. Integration synergies and functional excellence efforts are expected to lead to redundancy for some 700 FTE worldwide, primarily in G&A functions but also from improvement measures in production. The implementation of the measures is expected in the timeframe from 2012 to 2014 with a focus on 2012/13 once the squeeze-out becomes effective. Going forward, the focus will be on the continued delivery of the business objectives of Süd- Chemie while progressing with the integration and the squeeze-out process. Outlook 2011 At the beginning of 2011, Clariant shifted its focus from restructuring to continuous improvement and profitable growth. While the continuous improvement initiative “Clariant Excellence” will make the competitive cost basis sustainable, the company is now focusing on creating value by investing in future profitable growth. In the fourth quarter, Clariant expects the general slow-down in economic activity to continue, with clear signs of further weakness in demand in some regions and industries, especially in Europe. Exchange rates for the major currencies are expected to remain volatile. Commodity prices look set to stabilize at the level of the third quarter, leading to an increase in raw material costs in the mid-teens in 2011 compared to 2010. For 2011, Clariant – including eight months of consolidated Süd-Chemie figures – expects sales in the range of CHF 7.0 to 7.2 billion and an EBITDA margin before exceptional items of 12.8% to 13.2%.
Clariant International Ltd <strong>Quarterly</strong> <strong>Results</strong> 31 October 2011 Page 5 of 14 Business Discussion Third Quarter BU Industrial & Consumer Specialties Third quarter Nine Months in CHF million 2011 2010 % CHF % LC 2011 2010 % CHF % LC Sales 337 341 -1 16 1 090 1 128 -3 11 EBITDA before exceptional items 58 54 7 22 190 186 2 16 - margin 17.2% 15.8% 17.4% 16.5% EBIT before exceptional items 49 46 7 25 164 158 4 19 - margin 14.5% 13.5% 15.0% 14.0% EBIT 46 33 39 61 161 138 17 33 Sales in Industrial & Consumer Specialties (ICS) rose 16% in local currencies but declined 1% in Swiss francs versus the same period in 2010. Demand for chemicals in the construction and industrial lubricants industry was particularly strong. All regions contributed to the good result with strong double-digit sales growth in local currencies in Europe and Asia. Sales growth continued to be very strong in China where ICS has strengthened its market position with a new ethoxylation plant in Dayabay (South of Guangzhou, China). The Business Unit was able to increase its EBITDA margin compared to the previous year’s level despite a substantial adverse currency effect. The margin increase was due to a positive contribution from an improved mix effect, a better cost structure and higher sales prices that fully compensated for raw material costs. ICS already saw initial sales of de-icing fluids in the third quarter as airports increased their contingency inventories in order to prevent shortages of product in case of extreme weather conditions. ICS will continue to focus on innovative solutions and high value-added businesses. Of particular interest is the Personal Care industry where Clariant has launched an array of new personal care innovations. ICS will strengthen its position with an exclusive long-term partnership with KitoZyme, a leading edge manufacturer of bio-polymers that meet the needs of Personal Care customers worldwide looking for natural and sustainable ingredients.
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Quarterly Results Operationally on track, S

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