Clariant AG

Clariant improves profitability, reinstates dividend - Seite 2

7.120 billion in 2010. Sales grew 16% in local currencies and 4% in Swiss
francs. The lower growth in Swiss francs was a result of the significant
appreciation of the Swiss franc against most major currencies on a year-on-year
basis.

Due to the acquisition of Süd-Chemie and the strength of the Business Unit
Catalysis & Energy in the third and fourth quarters, sales were higher in the
second half-year than in the first six months, despite a significant slowdown in
some businesses towards year-end. In addition to Catalysis & Energy, which had
another record-year, the non-cyclical Business Units Additives, Functional
Materials, Industrial & Consumer Specialties, and Oil & Mining Services
contributed significantly to the sales increase in 2011. Those non-cyclical
businesses account for more than 50% of Group sales. In contrast, the cyclical
Business Units Pigments and Masterbatches suffered from a slow-down in
industrial production that started at the beginning of the second half-year and
resulted in destocking activities along the value chain. All regions grew at a
double-digit rate in local currencies.

The double-digit increase in sales was driven by year-on-year sales price
increases of 7% and by acquisitions, which contributed 14% to sales growth.
Volumes were 5% lower, reflecting the lower demand in the second half-year and
the deliberate loss of sales that did not meet Clariant´s profitability
targets.

The gross margin decreased to 26.7% from 27.9% in full-year 2010. Lower volumes,
negative currency effects, and a one-time charge were the main drivers of the
slightly lower margin, and were only partly offset by successful sales price
management. Excluding the one-time charge of CHF 54 million as a result of the
sale of Süd-Chemie inventories revalued to fair value less costs to sell, the
gross margin was 27.4%. Despite the global economic slow-down, commodity prices
remained at high levels. Raw material costs increased 14% compared to the
previous year. Sales price increases of 7% fully compensated the higher raw
material costs, leading to a slightly positive contribution to the gross margin.

EBITDA before exceptional items increased to CHF 975 million (margin 13.2%) from
CHF 901 million (margin 12.7%) a year ago. A strong fourth quarter in Catalysis
& Energy and a diminishing negative impact from currencies toward the end of the
year pushed the margin higher. The operating profit (EBIT) before exceptional
items rose to CHF 717 million (margin 9.7%) compared to CHF 696 million (margin