Clariant AG

Clariant improves profitability, reinstates dividend - Seite 3

9.8%) in 2010. Lower restructuring costs led to an improvement in net income to
CHF 251 million from CHF 191 million despite higher tax expenses.

The extreme volatility in the foreign exchange markets weighed on Clariant´s
profitability in 2011. Both EBITDA and EBIT before exceptional items were
negatively impacted by approx. CHF 190 million (EBITDA), corresponding to a 0.9
percentage-point margin, respectively approx. CHF 170 million (EBIT),
corresponding to a 1.0 percentage-point margin.

Cash flow from operations of CHF 206 million was below last year´s CHF 642
million, which to a large extent had been obtained from the reduction in net
working capital, but significantly above the CHF 21 million reported at the end
of the third quarter 2011. As a percentage of annualized sales, net working
capital reached 19.6%, below the targeted
20% of sales.

The acquisition of Süd-Chemie led to an increase in net debt to CHF 1.740
billion compared to CHF 126 million at year-end 2010. Net debt has been reduced
from 1.812 billion at the end of the third quarter, leading to a gearing (net
debt divided by equity) of 58% at year-end 2011. The cash position was strong
with CHF 1.199 billion in cash and cash equivalents on 31 December 2011. The
extension of the maturity profile has been successfully addressed with the
issuance of bonds totaling CHF 300 million in the Swiss francs market since May
2011 and another EUR 365 million in certificates of indebtedness with terms of
three years and four and a half years. After the reporting period, another EUR
500 million with maturity in 2017 have been raised in the Eurobond market.

Clariant Q4 2011 Performance

Clariant reported 21% sales growth in local currencies in the fourth quarter. In
Swiss francs, sales were 13% higher, at CHF 1.918 billion compared to CHF 1.700
billion a year ago. Sales prices increased 9% year-on-year, while volumes were
12% lower and raw material costs rose 10%. Sequentially, sales prices rose
slightly while raw material costs fell 1%. Catalysis & Energy had an excellent
quarter, leading the good performance of the non-cyclical businesses.
Masterbatches and Pigments were negatively affected by the softening demand from
the plastics industry and the related destocking activities. The structurally
challenged mature businesses Textile Chemicals, Leather Services, and Paper
Specialties continued to suffer from the poor business conditions in their
respective end-markets. Organic sales growth in North and Latin America was
double-digit, while sales in Asia/Pacific decreased. Europe suffered from the