The new, stronger Clariant

18 SEPTEMBER 2018
2 The new, stronger Clariant
18 September 2018

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, such as future market conditions, currency fluctuations,
the behavior of other market 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, or at 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 any revisions to these forward-
looking statements to reflect events or circumstances after the date of these materials.
The new, stronger Clariant
4 The new, stronger Clariant
18 September 2018

The new, stronger Clariant

• Creation of Business Area High Performance Materials (HPM) through the combination of Clariant’s Additives & high value Masterbatches with
Step change parts of SABIC’s Specialties business
into higher • HPM will be a uniquely positioned provider of highly customized high performance materials and solutions
• Divestment of Pigments, standard Masterbatches and Medical Specialties by 2020E
value • Attractive prospects in Care Chemicals, Catalysis and Natural Resources
specialties • Portfolio upgrade allows Clariant to be focused around customer-specific, technologically advanced applications with high growth and value
generations

• Signing of a Memorandum of Understanding to form newly created Business Area High Performance Materials
Creation of • Clariant to hold the majority stake in the combination
High • Equalization consideration will be made by Clariant to SABIC, valuation dependent
• Realization of cost synergies and enhanced operational efficiencies of CHF 100m until end 2022E
Performance • Net debt (incl. pensions) / EBITDA pro-forma 2019E leverage* not to exceed 2.4 x based on the current portfolio
Materials • Completion expected end 2019, effective as of 1 January 2020, subject to reciprocal due diligence and regulatory clearances
• Significantly EPS accretive in first year (2020E)

• Sales to reach approx. CHF 9 bn in 2021E post creation of HPM and divestments
Financial • Sales growth upgrade to 5 - 6 % p.a., driven by the Group’s enhanced growth profile
Highlights • EBITDA margin after exceptional items to rise to approx. 20 % by 2021E
• Operating cash flow increase to above CHF 1.2 bn in 2021E

• Expansion of Board of Directors to 12 members, of which 4 to be nominated by SABIC

• Proposed Chairman of the Board: Hariolf Kottmann
Governance • New CEO: Ernesto Occhiello
• CFO: Patrick Jany
* including SABIC’s Specialties business and Clariant’s current portfolio set-up (before divestments)
5 The new, stronger Clariant
18 September 2018

Clariant makes step change into higher value specialties *

Sales growth Sales growth Sales growth Sales growth Sales growth
expectation p.a. 6-9% expectation p.a. 5-7% expectation p.a. 6-9% expectation p.a. 6-7% expectation p.a. GDP

EBITDA EBITDA EBITDA EBITDA Steered for absolute EBITDA and cash
24 - 25 % 19 - 21 % 26 - 30 % 16 - 17 %
margin ambition 2021E margin ambition 2021E margin ambition 2021E margin ambition 2021E flow generation

HIGH PERFORMANCE CARE CATALYSIS NATURAL PLASTICS &

MATERIALS CHEMICALS RESOURCES COATINGS
Business Area (BA) High Performance BA Care Chemicals comprises the BA Catalysis comprises the BU BA Natural Resources, comprises the BA P&C comprises the Pigments
Materials comprises the businesses BU Industrial & Consumer Specialties Catalysts and the Business Line BUs Oil & Mining Services and business (pigments, preparations and
Additives, high value Masterbatches (ICS), Food additives as well as the Biofuels & Derivatives. It develops, Functional Minerals. It is characterized dyes used primarily in coatings,
and high performance thermoplastics. future Industrial Biotechnology manufactures, and sells a wide range by high growth and low cyclicality as plastics, printing and consumer
Major applications include smart business. It demonstrates a clear of catalyst products for the chemical well as a strong megatrend goods), standard Masterbatches for
electronics, health care, aerospace, focus on highly attractive, high- and fuel industries which contribute orientation. Main drivers are the rising the plastics industry and converters
automotive, robotics, additive margin, and low-cyclicality segments. significantly to value creation in our demand for high value-added as well as Medical Specialties. The
manufacturing, renewable energy, as The BA follows a lifestyle-driven customers’ operations, ensuring that specialty chemicals used in the oil, BA is typically subject to GDP growth
well as e-mobility. These applications megatrend and strengthens Clariant’s finite raw materials and energy are mining, food and packaging industries and economic cycles due to its highly
demand differentiated fulfillment of position as a supplier of green and used efficiently. In addition, Catalysis and the increased consumption of oil, diversified end applications. Main
customer specifications which require sustainable products. is in the forefront of new market gas and base metals, driven by the drivers are the increasing use of
exclusive technology and formulation developments such as the fast-growing economies. plastic applications, as well as the
know-how. commercialization and licensing of steadily growing demand for more
bio-ethanol. sustainable coating solutions.
* reporting structure as of 01.01.2019
6 The new, stronger Clariant
18 September 2018

New Clariant - financial outlook 2021E

GROUP FINANCIAL OBJECTIVES TRANSACTION FINANCIALS

11 000

10 000

9 000
~ 9.0
SALES 8 000

6.4 CHF 100m p.a.

7 000

SYNERGIES
in CHF bn 6 000

5 000

2017 2021E

~ 20.0 %
EBITDA margin 12.7 % Significant accretion from
EPS
after exceptional items first year onwards
2017 2021E
1 800

1 600

OPERATING
1 400

> 1 200
Not to exceed 2.4x
1 200

1 000

NET DEBT / EBITDA

CASH FLOW 800

600
428 incl. pensions (pro-forma 2019E*)
in CHF m 400

200

2017 2021E

ROIC Above peer group

after exceptional items
>10 % average

Note: combined business foreign exchange rate assumption of 1.0 USD = 1.0 CHF; 2021E at stable 2018 FX rates * including SABIC’s Specialties business and Clariant’s current portfolio set-up (before divestments)
Combination Highlights
HIGH PERFORMANCE
MATERIALS
8 The new, stronger Clariant
18 September 2018

Combination benefits

• Creation of a uniquely positioned provider of highly customized high performance materials and solutions
Creation of a unique
• The newly created Business Area to be named High Performance Materials (HPM)
• Complementary capabilities by combining Clariant’s Additives and high value Masterbatches (color, high
performance materials
temperature resins and health care) with parts of SABIC’s Specialties business (thermoplastics)
business
• Combined unique customer-specific offering places HPM business in an advantageous position
• Offering addresses global growth trends within rapidly expanding end-applications

Expanded global footprint

• Accelerated growth from complementary market and customer exposure
offering additional growth
• Further strengthening of Clariant’s competitive position and presence in China / Asia and North America
opportunities
• Creation of a unique, proprietary R&D and technology platform
Innovation + technology + • Expanding innovation capabilities establishing basis for increasing win-rates
sustainability • Leading innovative platform with a portfolio of unique proprietary technologies (e.g. polyetherimide (PEI) and
= profitable growth non-halogenated flame retardants) and a strong track-record of technological breakthroughs
• Above market sales growth of 6 – 9 % p.a. until 2021E

• Synergies of CHF 100m p.a. by 2022E

Significant synergy potential of
• Areas of synergies include service costs, spend effectiveness, site efficiency and asset network optimization
CHF 100m p.a.
• Implementation costs of CHF 80m over 3 years

Attractive profitability with sig. • HPM EBITDA margin expansion to 24 - 25 % in 2021E from 19.4 % in pro-forma 2017
progression potential • Combination to lead to significant EPS accretion from first year onwards
Note: combined business foreign exchange rate assumption of 1.0 USD = 1.0 CHF; 2021E at stable 2018 FX rates
9 The new, stronger Clariant
18 September 2018

Transaction highlights

• Combination of Clariant's Additives and high value Masterbatches with parts of SABIC's Specialties business
to create the new Business Area High Performance Materials within Clariant

• Clariant to hold the majority stake of the combined businesses

• Agreement in principle to transfer the businesses at similar valuation multiples in view of the businesses
being of similar quality and profitability levels

• Equalization consideration to be made by Clariant to SABIC, depending on final relative valuation to be

determined by both parties

• Realization of cost synergies and enhanced operational efficiencies of CHF 100m until end 2022E

• Clariant resulting net debt (incl. pensions) / EBITDA pro-forma 2019E leverage* not to exceed 2.4x at closing

* including SABIC’s Specialties business and Clariant’s current portfolio set-up (before divestments)
10 The new, stronger Clariant
18 September 2018

High Performance Materials – customer-specific solutions

creating the basis for accelerated profitable growth
• Customer-specific and application know-how driven offering for:
thermoplastics for demanding thermo-electro-optical and mechanical
FINANCIAL PERFORMANCE
environments, specialty additives and masterbatches in tandem with an (EBITDA margin after exceptional items)

outstanding global compounding platform 24 – 25 %

• Major applications: smart electronics, health care, aerospace, automotive, 4 500

24.0 %

4 000
19.4 %
robotics, additive manufacturing, renewable energy as well as e-mobility 3 500
22.0 %

20.0 %

~ 4 000
•
3 000

Exclusive technology and formulation know-how allow for fulfillment of

18.0 %

2 500

16.0 %

stringent customer specifications 2 000

1 500
3 050 14.0 %

12.0 %

• Enhanced market and customer reach, cost synergies and enhanced

1 000 10.0 %

2017 pro forma 2021E

operating efficiencies to fuel substantial profitability progression and unlock Sales in CHF m EBITDA a.e.i. margin
greater value creation
• By 2021E, sales expected to grow to approx. CHF 4 bn OUTLOOK
from pro-forma 2017 sales of CHF 3 bn
• EBITDA margin (2021E), incl. synergies, at 24 - 25 % Sales growth 2017 – 2021E 6 – 9 %*

from 19.4 % in pro-forma 2017 EBITDA margin a.e.i. 2021E 24 - 25 %

* per annum

Note: combined business foreign exchange rate assumption of 1.0 USD = 1.0 CHF; 2021E at stable 2018 FX rates
11 The new, stronger Clariant
18 September 2018

SABIC’s Specialties business

Application Examples

Highly differentiated • ULTEM™, NORYL™ and Copolymer resins and LNP™ functional compounds are highly Consumer
products with proprietary differentiated products that offer a distinct set of physical properties Electronics
technology • Differentiation allows for sustainable value-based pricing (EMI Shielding)

• The Specialties offerings serve highly attractive niche end-applications, e.g. battery pack Consumer
Strong positions materials for electric vehicles, surgical instruments in health care, and cabin interior in and Industrial
in attractive end- aerospace (Fluid
applications Engineering)
• Attractive, high growth end-applications such as consumer electronics and e-mobility
Automotive
• SABIC’s Specialties business is the supplier of ULTEM™ and NORYL™ resins, and one of (Sensors and
the major technical compounders, able to produce differentiated specialty grades Connectors, Battery
Pack Materials)
Unique selling • The high differentiation of the physical properties of these materials is a unique
proposition selling proposition
Healthcare
• Specialties offerings have the ability to drive application development in specific high
(Patient Testing,
value applications Surgical Instruments)

• New businesses include additive manufacturing, advanced thermoplastic composites and

resin conversion Aerospace
Attractive pipeline (Cabin Interior)
• Incubation businesses have successfully demonstrated customer and market pull, product or
prototype capability, and value chain development

Information and images are courtesy of SABIC.

12 The new, stronger Clariant
18 September 2018

High performance polymers and compounds

ULTEM™ resin is a high performance ULTEM ™ resin HIGH PERFORMANCE

thermoplastics resins (PEI), which provides high POLYMERS (HPP)
thermal, high strength, flame resistant properties
NORYL™(1) resin, TS&A(2)
(PPE Oligomers for PCBs)(3)
NORYL™ resin is a specialty engineering polymer ENGINEERING
(PPE), which combines the benefits of PPE with POLYMERS
High thermal stability
excellent dimensional stability, good processability
and low specific gravity Medium thermal stability
LNP™ compounds
LNP™ compounds and copolymers consist of & copolymers
unique combinations of resin system, fillers, additives COMMODITY
and flame retardants POLYMERS
Low thermal
stability

Note:
(1) PPE is a specialty engineering polymer and can be categorized in-between engineering and high-performance polymers according to industry
experts; PPE has a range of high value and high margin applications where it competes with high-performance polymers.
(2) TS&A: Thermosets & Additives business line
(3) PCB = Printed Circuit Boards
Information and images are courtesy of SABIC.
Source: IHS Chemicals, expert interviews, MarketsandMarkets
13 The new, stronger Clariant
18 September 2018

Synergies arising from business combination

120

100

80

60

40
100 100
20
60
Synergy distribution 0
20
-40 -20 -20
Tentative, approximation in CHF m - 20

- 40

2020E 2021E 2022E 2023E

Synergies phased Implementation costs

Synergies 2022E

Service Cost − Unify services over shared IT system − Workflow harmonization

Site Efficiency
Synergies − Leverage existing Clariant processes − Operational efficiency

Distribution
Procurement − Combine and optimize purchasing − Adopt best-in-class sales approach
Optimization

Asset Network
− Consolidation of assets
Optimization

− Stronger presence in joint applications by combining formulation technology, customer access, qualification process participation
Other Sources of − Broader offering including participation in OEM driven development process (e.g. via small lot compounding) including masterbatches as an
Synergies alternative coloration delivery system
− Leveraging of Clariant’s Masterbatches’ color houses for parts of SABIC’s Specialties business

Note: combined business foreign exchange rate assumption of 1.0 USD = 1.0 CHF; 2021E at stable 2018 FX rates
14 The new, stronger Clariant
18 September 2018

Next steps of portfolio upgrade

Next steps for creation of High Performance Materials Business Area

• SABIC and Clariant to prepare carve-out of their respective businesses

• Strong commitment from both SABIC and Clariant to finalize terms of the combination by June 2019 following
completion of reciprocal due diligence

• Valuation to be negotiated and equalization consideration to be mutually determined in order to achieve

economic ownership levels

• Closing targeted for December 2019, subject to regulatory approvals and other customary closing conditions

Next steps for divestments

• Carve-out of remaining Plastic & Coatings businesses during 2019

• Divestment of Pigments, standard Masterbatches and Medical Specialties by 2020E

Group Strategy
16 The new, stronger Clariant
18 September 2018

Strategic direction

• Our strategy is to leverage our operational efficiency to effectively seize the profitable growth
opportunities arising from global challenges

• Clariant is well positioned to deliver innovative, sustainable products and solutions which
address the increasing demand for more convenience, stricter safety requirements and tighter
environmental regulations as well as improved energy efficiency

• Our customer-specific product portfolio, technology and solution offerings will allow for an
above-average top-line growth, profitability progression as well as a resilient and improving
operating cash flow

Clariant, your dedicated and strong partner who provides innovative, specialized solutions
for profitable growth and a sustainable tomorrow.
17 The new, stronger Clariant
18 September 2018

Group strategy with enhanced product and solution offering

1 2 3 4 5

FOCUS ON ADD VALUE WITH REPOSITION INTENSIFY INCREASE

INNOVATION AND SUSTAINABILITY PORTFOLIO GROWTH PROFITABILITY
R&D

• Continued product • Commercialization of • Advanced product • Driven by new • Digitally-enabled

differentiation and sustainability (green, and solutions products through differentiated operating
customer renewable and replacing previous innovations and models according to
specification ecological products) offering customer their degree of
specifications specialization
• Capturing digital • Capture recycling
Continuous business model opportunities • Increased scale • Above industry • Product and solution
developments opportunities offering upgrade with
• Mitigation of risk • Upgraded higher segments' growth
higher profitability
• Thought leadership margin specialties • Strengthen position
in disruptive portfolio in core growth • Enhanced processes
technology fields • Additional R&D and markets (China, to increase cost
through R&D commercial North America) efficiency
opportunities

Portfolio
upgrade
 18 The new, stronger Clariant
18 September 2018

Total pipeline of CHF 2.1 bn

Future peak sales in CHF
Innovation pipeline examples SYNGAS
SEDIMENT MANAGEMENT < CHF 20m
(Catalysis)
(Natural Resources)
Profitability
CHF 20 - 50m

LIGNOCELLULOSIC ETHANOL CONSUMER CARE

(Catalysis) (Care Chemicals) CHF 50 - 100m

> CHF 100m

ADDITIVES
(High Performance Materials)
INNOVATION FOR OIL
RECOVERY
(Natural Resources)

RENEWABLE AND BIODEGRADABLE

PRODUCTS CONSUMER CARE
(Care Chemicals)

CROP SOLUTIONS
CUSTOMER-SPECIFIC (Care Chemicals)
PETROCHEMICALS
CATALYST
(Catalysis)
(Catalysis)

2017 2018 2019 2020 Launch date

19 The new, stronger Clariant
18 September 2018

Care Chemicals – further accelerating into becoming a leading

innovative and sustainable solution provider
STRATEGY OUTLOOK
• Continue to grow more quickly than the market by: FINANCIAL PERFORMANCE
(EBITDA margin after exceptional items)

 Increasing offering of sustainable products and solutions by supporting

the expanding demand for sustainable and “ecological” products 19 - 21 %
24.0 %

2 400

coupled with demand for convenience 2 200

22.0 %

16.5 %
20.0 %

2 000

 Strengthening exposure in strategic regions: North America and China /

18.0 %

1 800

16.0 %

1 600

Asia 1 400

1 575
14.0 %

12.0 %
1 200

•
1 000 10.0 %

Focus on growing Consumer Care business: 2017 2021E

 Personal Care (natural ingredients and active ingredients anticipating Sales in CHF m EBITDA a.e.i. margin

the future beauty trends)

 Home Care (sustainability and convenience) UPDATED OUTLOOK
 Crop Solutions (precision application, delivery and crop yield increase) Sales growth 2017 – 2021E 5 – 7 %*
• Improve profitability by moving towards more individualized, customer- EBITDA margin a.e.i. 2021E 19 - 21 %
specific products with scalability mainly in Consumer Care * per annum
20 The new, stronger Clariant
18 September 2018

Care Chemicals

PRODUCT INNOVATIONS LINKS TO INNOVATIONS:

PERSONAL CARE
− Genadvance: enables much improved hair conditioning performance via sustainable formulations
using natural ingredients. Genadvance currently provides 3 new conditioning ingredients (i.e. hair Advanced hair care
GENADVANCETM
shine, hair and scalp moisturization and hair repair)
GENADVANCETM
− Smart surface cleaning offering: entry into new market segment of a hard surface cleaner which GENADVANCETM LIFE
combines several consumer benefits in one product thus meeting customer’s demand for GENADVANCETM REPAIR
convenience: i.e. reducing cleaning time and effort while having additional performance properties of GENADVANCETM HYDRA
shine and repair

− Glucamide: currently approx. 180 customers are reformulating their products to include Glucamide in
their formulations for personal care, home care, crop and industrial applications

INNOVATIVE CUSTOMER-SPECIFIC COOPERATIONS

− Synergen OS: optimizes spray droplet management of agricultural applications thereby reducing drift
and improving crop yield; in a joint development between Clariant and one of our clients
CROP SOLUTIONS
SYNERGEN® OS
21 The new, stronger Clariant
18 September 2018

Catalysis – maintenance and capitalization of innovation

leadership and strong licensing partnerships
STRATEGY OUTLOOK
Catalysts FINANCIAL PERFORMANCE
(EBITDA margin after exceptional items)

− Continue to grow more quickly than the market’s ca. 3 % growth rate via:
26 - 30 %
• Leveraging our innovation leadership and thus accelerate the introduction of 1 200 31.0 %

innovative, customer-specific catalysts for defined areas with large scale

1 100

29.0 %

1 000

25.0 %
potential 900
27.0 %

800

• Adding more sustainable products using less hazardous materials thereby

25.0 %

700

767 23.0 %

enhancing sustainability and cost position of customers 600

500 21.0 %

• New customer entrants showing preference for proven technologies such as 2017 2021E

those of Clariant Sales in CHF m EBITDA a.e.i. margin

Biofuels & Derivatives UPDATED OUTLOOK

− Incremental sunliquid® sales of CHF 100m, of which license sales of CHF 50m
Sales growth 2017 – 2021E 6 – 9 %*
and CHF 50m bioethanol sales (entire production of Romanian plant already
contracted for several years) by 2021 EBITDA margin a.e.i. 2021E 26 – 30 %
* per annum
− EBITDA margin exceeding 40 %
22 The new, stronger Clariant
18 September 2018

Catalysis

PRODUCT INNOVATIONS LINKS TO INNOVATIONS:

Catalysts EMISSION CONTROL

− Customized catalysts offering significant longer-term activity and a better stability thus lowering total
costs of ownership ENVICAT®

− Catalysts with specialized properties, including recyclability, reduction of hazardous components while
providing an improved catalyst specific performance (increase yield, reduce energy consumption and
reduce by-products) BIOFUELS & DERIVATIVES
− Air purification: meeting the demand for “clean, healthy” air in cities with high pollution levels with
catalysts such as ENVICAT® SUNLIQUID®

− Hydrogenation: entering new regional markets

Biofuels & Derivatives: sunliquid® technology

− Flexible process for various renewable feedstocks
− Integrated production of feedstock-specific enzyme to deliver max. efficiency, independent of suppliers
− Energy neutral / self-sustained: no additional fossil energy required
− Nearly carbon neutral and high process yield based on agricultural wastes: No additional land needed,
no competition with food and feed in land requirement
23 The new, stronger Clariant
18 September 2018

Natural Resources – optimizing operations at OMS and

expanding into new applications at Functional Minerals
STRATEGY OUTLOOK
Oil & Mining Services FINANCIAL PERFORMANCE
(EBITDA margin after exceptional items)
− Improved Oil / Oil services growth prospects:
• Oil market rebound to result in momentum turnaround
16 - 17 %
• Introduction of differentiated steering with focus on the growth oil basins in North and 2 000

1 900
18.5 %

South America 1 800

1 700
17.5 %

16.5 %

1 600

14.3 %
− Mining: diversify and grow mainly in Latin America and accelerate growth in North
15.5 %

1 500

1 400 14.5 %

America 1 300

13.5 %

1 357
1 200

12.5 %

1 100

− Main profitability improvement drivers include tight cost control and cost reduction 1 000 11.5 %

2017 2021E
according to respective business landscapes and differentiated steering
Sales in CHF m EBITDA a.e.i. margin
Functional Minerals
− Continued above bentonite market growth
UPDATED OUTLOOK
− Regional expansion in North America (market entry into purification segment), Latin
America and the Middle East Sales growth 2017 – 2021E 6 – 7 %*
− Expansion in new applications through innovations by means of smart and active
packaging (e.g. feed and agro) EBITDA margin a.e.i. 2021E 16 – 17 %
* per annum
− Continued attractive margins due to new innovative technologies with superior growth
opportunities
24 The new, stronger Clariant
18 September 2018

Natural Resources

PRODUCT INNOVATIONS LINKS TO INNOVATIONS:

Oil & Mining Services OIL SERVICES

− Intelligent chemical management in real-time, VERITRAX™, providing customers with additional valuable features
such as improved operational efficiencies, increasing the efficiency of business processes, and boosting production VERITRAXTM
up-time
− The VERITRAX™ dashboard quantifies the optimum chemical spend, helps to reduce unplanned downtime, while
proactively maintaining operational efficiency
− Broad rollout of proven and digitally-enabled VERITRAX™ with enhanced scalability to stimulate further
advancement
OIL PURIFICATION
Functional Minerals
− Low Emissions Technology (Geko LE / Ecosil LE) for the foundry industry lowers total cost of ownership by reducing TONSIL®
the consumption of process aids and suppressing unwanted side-reactions
− INVOQUE® marks Clariant’s entry into sediment management for the mining sector. This unique process technology
reduces water consumption and improves the use of tailings reservoirs which results in lower overall operating
costs and mitigates the environment impact SEDIMENT MANGEMENT
− Our Tonsil® range allows producers of renewable- and bio-resource based diesel to remove heavy metals at very
low dosage rates thereby allowing faster filtration and low overall residency time, thus increasing production INVOQUE®
throughput
25 The new, stronger Clariant
18 September 2018

“Remaining” Plastic & Coatings

STRATEGY OUTLOOK
Pigments FINANCIAL PERFORMANCE
(EBITDA margin after exceptional items)
− Marketing driven sales growth via selective innovation projects, growth in preparations
and regional focus on opportunities in China, India and North America
− Profitability improvements anticipated via:
2017 Sales (CHF m) 1 560
• Development of functional excellence in pricing and increased capacity utilization
• Supply chain optimization: improved reliability for customers, digitally enhanced EBITDA a.e.i. (CHF m) 182
offering and ensuring a sustainable product range
EBITDA a.e.i. margin 11.7 %
Standard Masterbatches
− To grow sales in line with GDP by benefiting from strong market position, convincing
product portfolio and focus on more rapidly growing regions and profitability
improvements
UPDATED OUTLOOK
Medical Specialties
− Continue sales increase through innovations which meet increasingly stringent Sales growth 2017 – 2021E GDP*
customer and regulatory requirements Steered for absolute EBITDA and cash flow
generation
* per annum
Governance, Listing &
Shareholder Structure
27 The new, stronger Clariant
18 September 2018

New Shareholder & Governance

• With a 24.99 % stake, SABIC is Clariant’s largest shareholder

Shareholder • No intention to make a public tender offer or to otherwise effect a full takeover of Clariant
Structure &
Listing • Group of former shareholders of Süd-Chemie AG to remain second largest shareholder

• Clariant to continue as an independent listed company on the Swiss Stock Exchange SIX

• Board of Directors: 12 Board members, of which 4 to be nominated by SABIC

• Proposed Chairman of the Board: Hariolf Kottmann

• Chief Executive Officer: Ernesto Occhiello

Governance • Chief Financial Officer: Patrick Jany

Agreement • New CEO not part of the Board of Directors

• Headquarters: Switzerland

• Election of Board members and Chairman subject to shareholder approval

 Extraordinary shareholders' meeting scheduled for 16 October 2018
28 Confidential, Analysts Presentation
18 September 2018

IR Contacts

Anja Pomrehn Phone: +41 61 469 63 73

Head of Investor Relations Email: [email protected]

Maria Ivek
Investor Relations Officer

Sonja Ritschard
Junior Investor Relations Manager
29 The new, stronger Clariant
18 September 2018

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