ExaneConsumer Ingredients Seminar

Transcription

1 ExaneConsumer Ingredients Seminar LONDON, 16 MAY 2013, DR. RALF ZERRER Public Ralf Zerrer BU ICS

2 2 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.

3 3 Clariant at a glance BUSINESS UNITS Sales 2012: CHF million REGIONAL MARKETS Sales 2012: CHF million SALES (CHF m) % CA 12% ICS 24% MB 19% PIG 15% North America 236 / +2% Europe 37% Europe, Middle East & Africa 699 / 0% Middle East Asia &/ Pacific Africa 349 / +1% 9% Asia/ Pacific 23% Latin America 225 / +12% 2011* 5 571* EBITDA (CHF m) before exceptionals % 2011* 835* MARGIN 2012: 13.3 % 2011: 15 % FM 11% ADD 1 7% OMS 12% ADD = Additives / FM = Functional Materials / CA= Catalysts / ICS = Industrial & Consumer Specialties / MB = Masterbatches / PIG = Pigments / OMS = Oil & Mining Services North America 16% 1 Additives includes part of the business unit Emulsions, which is not in scope of discontinued operations Latin America 15% EBIT (CHF m) before exceptionals % 2011* 624* MARGIN 2012: 8.8 % 2011: 11.2 % * Restated due to discontinued operations

4 4 Focus activities on four Business Areas reporting structure as of Q Care Chemicals Catalysis & Energy Natural Resources Plastics & Coatings Personal Care Catalysts Oil Services Additives Industrial Care Energy Storage Mining Solutions Pigments Home Care Refinery Services Masterbatches Crop Care Functional Minerals Industrial Biotechnology Water Treatment Food & Feed excl. Paper Specialties, Textile Chemicals, Emulsions Detergents & Intermediates, Leather Services

5 BU Industrial & Consumer Specialties Public Ralf Zerrer BU ICS

6 6 Key facts BU Industrial and Consumer Specialties ICS one of the largest providers of specialty chemicals and application solutions for consumer care and industrial markets. Combining market knowledge with high-performance ingredients and formulation expertise, ICS delivers solutions with the best cost-performance ratios. Its EcoTain label exemplifies its uncompromising pursuit of the principle of environmental sustainability. Sales 2012 (in million CHF) 1,474 Employees 1,750 Production sites 14 R&D Centers 4 Application Development Centers 4 Base Products 24% Industrial Application 33% Consumer Care 43% Sales 2012 by segment LATAM 20% NORAM 15% APAC 14% EMEA 51% Sales 2012 by segment

7 7 Broad technology platform serves different needs Industrial & Home Care Personal Care Crop Protection Automotive Fluids Aviation Biocides Gas Treatment Construction Defoamers Ethylene Oxide & Derivatives Heat Transfer Fluids Industrial Lubricants Paints & Coatings Special Solvents

8 8 Segmentation of BU ICS KEY FACTS Sales ICS 2012, mchf 1,474 Consumer Care Sales Share 43% BUSINESS SEGMENTS DIFFERENTIATION BUSINESSES Personal Care Industrial & Home Care Crop Protection Value generated from customer tailored solutions and innovative power Investment in assets, resources and expertise Industrial Application Sales Share 33% ATTRACTIVE NICHES Aviation Construction Engineering* Industrial Biocides Industrial Lubricants Paints & Coatings Value generated from efficiency in sourcing and supply chain Investment to expand footprint and capacities Base Products Sales Share 24% BASE PRODUCTS Ethylene Oxide EO derivatives Amines Softener Quats Sodium Laureth Sulfates Automotive Fluids Value generated from efficiency in sourcing and supply chain Restricted investments

9 9 Global footprint in production and R&D to support customers growth Manufacturing and R&D Production sites 14 R&D sites 5 Gendorf Frankfurt Santa Clara Clear Lake Mt Holly Tarragona Gebze Shizuoka Zhenjiang Coatzacolacos Maracay Thane Dayabay Tangerang Suzano Zarate

10 BU Industrial & Consumer Specialties STRATEGY TO SERVE CONSUMER NEEDS IN LINE WITH GLOBAL TRENDS Public Ralf Zerrer BU ICS

11 11 To understand the global trends is key for market opportunities Wellbeing and disposable incomes Urbanization Sustainability Growing population/ Emerging markets More people earning better wages & more women entering the workforce will drive the desire for luxury and well-being More hectic lifestyle, less leisure time: changes lifestyle consumption patterns & increases demand for convenient products More than half of the world s population currently lives in cities, by 2030 two third will be urban dwellers With better access to health- and consumer care, life expectancy will remain on the rise Renewable feed stocks as increasing alternative Sustainable processes Biotechnology platforms Population growth: approx. 8.3 bn people will live on planet Earth in In 2015 the emerging markets will achieve purchasing power parity with the developed world

12 12 ICS strategy will facilitate focusing on key elements for increasing competitiveness and driving profitable growth Strategic objectives Focus on strengthening its position in consumer markets (Personal Care, Industrial & Home Care, Crop Protection) while keeping its leading position in selected industrial niches. Strategy 1. Refocus operating model in line with nature of business 2. Improve innovation and application know-how 3. Expand regional presence 4. Secure competitive raw material access 5. Focus on core technologies globally

13 13 Repositioning to strengthen position in key markets From Mixed customer interaction models in multiple consumer and industrial markets Average position in consumer markets Broad product-oriented portfolio and limited application know-how Providing traditional, product-oriented chemistry with focus on global KAs To Operating model tailored to nature of business and leveraging a common technology base Focus on specific customer groups in consumer markets Deep understanding of customer needs by significant investment in expertise and acquisitions. Product development based on provable claims. Portfolio expansion, solution provider to regional accounts, innovation provider to global key accounts Good market position in Europe and Latin America, but minor presence elsewhere Truly global presence based on investments in new regions, especially Asia, Eastern Europe and North America Historically grown technology portfolio with regional gaps Selected sites partially backward integrated into intermediate products Technology strategy driven by assets Global focus on competitive core technologies Cost competitive production of selected commodities based on optimized asset footprint and backward integration into key raw materials Technology strategy driven by market trends

14 14 Partnerships & acquisitions LATEST INVESTMENTS CUSTOMER BENEFITS Acquisition, October 2011 Oberhausen Technology Center Partnership, August 2011 Kitozyme Acquisition, March CRM Int. Technology Acquisition Exclusive partnership Technology Acquisition New innovative formulation technology and advanced delivery systems to serve consumer care market Innovative white biotechnology products for personal care applications Natural cosmetic ingredients for sustainable and high performance solutions

15 15 Going beyond being just natural by smartly combining the technology clusters CRM Olive oil based natural ingredients Take the nature OTC / KitoZyme Encapsulation technology Chitosan derivatives Upgrade by smart technology BU ICS Formulation and skin care expertise Deliver Innovation

16 BU Industrial & Consumer Specialties PERSONAL CARE Public Ralf Zerrer BU ICS

17 17 The global trends are driving the market growth in beauty care Others 6% Oral 9% Fragrances 10% Hair Care 17% Skin Care 58% Total 360 bn USD CAGR (%) by region Source: Euromonitor / Retail value

18 Personal care 18 Differentiation in the market requires strong claim substantiation From insight to claim support: Work out Reasons-to-Believe (RTB) to support product benefits with appropriate claim substantiation by using new equipment and test capabilities Insight (understand consumer & customer need) Benefit (offer product matching the unmet need come up with solutions) Reason to believe (explain why & how the product is working with state of the art studies)

19 19 Consumers expect Results from their products Anti-Aging Sensoric Purity Visible Results fighting skin ageing signs Otherwise costly specialty actives are now appearing in more affordable product formulations due to a differentiating consumer Increased Demographic Buying Power and desire to look younger Consumers need to see and feel to reinforce claims. They don t just believe. Sensorics become more important than ever Label Claim Ingredients to be replaced by true ingredients that actually work Consumers make educated choices Professional Skin Care increasing Source: Opportunities in Skin Care: Exploring Specialty Actives, Kline & Company, 2012

20 20 VitiSpheres : Our new Delivery System Deliver pure actives easily in a stable form Your additional Benefits: Deliver more active quicker and with more effective results Stability of actives Less irritating for consumers Long lasting Ease of formulation (add, stir, ready)

21 21 Acquisition CRM International complements our portfolio of natural ingredients CRM International is a manufacturer of natural cosmetic ingredients. The product portfolio contains emollients, active ingredients, butters and natural alternatives to silicones. The BU ICS intends to extend innovation capabilities for consumer markets. Besides investing in its own research capabilities, ICS aims to accelerate sustainable solutions based on natural raw materials

22 22 What is Plantasens? Plantasens offers Clariant s Personal Care product portfolio a new range of all natural ingredients for every cosmetic application, i.e. Skin & Hair care, Sun care and Color cosmetics PRODUCT RANGE Plant-based active ingredients Multi-functional emulsifiers Broad selection of emollients, e.g. vegetable oils, natural & sensorial butters & alternatives to silicone, petrolatum and lanolin Ecocert approved

23 23 Cosmetic Good Manufacturing Practice (cgmp)as standard to guarantee quality The accreditation of Clariant s global management system with the global ISO guarantees globally-consistent products and processes. It reinforces our commitment to be a leading partner for the personal care industry. 9 PRODUCTION SITES * COSMETIC INGREDIENTS (GMP) Switzerland: Muttenz (Headquarters) Germany: Gendorf, Frankfurt, Gersthofen Spain: Tarragona China: Zhenjiang Indonesia: Tangerang USA: Mt. Holly, North Carolina Brazil: Suzano Actives: Octopirox, Locron, Vitipure, Zenvivo Emulsifier: Hostacerin, Emulsogen, Hostaphat Emollients & Moisturizer: Velsan, Polyglykol Pearlizer: Genapol Preservatives: Nipagin, Nipaguard Surfactants: Genagen, Hostapon, Genamin * Additional 8 sites are expected to be approved in 2013

24 EcoTain Sustainable excellence at every step Public Ralf Zerrer BU ICS

25 25 The EcoTain values Sustainable design People s health Responsible process Environmental protection Performance & efficiency Conservation of resources Safe & efficient use Ecointegration

26 26 Major projects and outlook Further significant investments in China in manufacturing and R&D capabilities, shift of selected competence centres to Asia Major projects to enlarge manufacturing capabilities and capacities in North America Investments in Europe in the manufacturing of innovative renewable based surfactants for use in Personal Care and Crop Solutions Investments for the regional markets in South East Asia Continued evaluation of bolt-on acquisition opportunities in order to further strengthen our technology platform

27 27 Summary Repositioning well under way: strong expertise to provide regional customers and global key account with innovative solutions Innovation: technology strategy driven by market trends, product development based on provable claims Selected bolt on acquisitions to strengthen technology platform Growth platforms in emerging markets have been established Strong global footprint in manufacturing and R&D to support customers globally Significant growth in sales and profitability by consequent implementation of our strategy to continue

28 Questions & Answers Public Ralf Zerrer BU ICS