Growing beyond Sustain, improve, grow to create value Business Unit Functional Materials

Transcription

1 Growing beyond 2012 Sustain, improve, grow to create value Business Unit Functional Materials Sven Schultheis, Head of BU Functional Materials Capital Markets & Media Day, Munich, 22 June 2012

2 Agenda Products and markets Improve processes and customer offerings Profitable growth Summary Slide 2

3 You can find us here! Slide 3

4 Our business is based on three pillars that serve highly attractive resilient markets Adsorbents & additives Performance packaging Water treatment Slide 4

5 Market characteristics provide solid growth potential Total Functional Materials market Accessible market (in CHF) Adsorbents Performance packaging Water treatment 1.7 bn 600 mn 11 bn Market growth 3-4% 5-7% 4-6% BU growth > market growth Selected customers: ADM Cargill Bristol-Myers Squibb Teva SAB Miller Top 5 key accounts represent: 7.5 % of total global sales Selected competitors: AMCOL Taiko Multisorb Sanner Ecolab Sachtleben Growth drivers Increasing wealth in developing countries leads to over-proportional growth in food and feed, and healthcare Increasing environmental standards lead to over-proportional growth in water treatment, clean foundry additives solutions, and biodiesel purification Slide 5

6 BU Functional Materials CHF million in sales (May-December 2011) Approximately 2,800 employees 34 mines 37 production sites Sales by region Sales by market segment Asia/Pacific 22% North America 11% Middle East & Africa 13% Latin America 9% Europe 45% Performance packaging 24% Water treatment 16% Adsorbents 60% Slide 6

7 Purifying and enhancing functional properties in demanding applications Adsorbents & additives Bentonite is key to quality and cost Bentonite is a unique natural mineral with superior functional properties The adsorbent business is fully backwardly integrated and controls the complete value chain Provide solutions to a broad range of industries A leading competitive position in a global market 34 mines with wide spectrum of grades and optimized logistics 24 production facilities providing local/regional and global products One of the top 3 players in its different markets Megatrends present growth opportunities Increased consumption of edible oils especially in Asia a result of increased wealth and changing food habits Future market for bleaching earths in biofuel production Strong growth potential for foundry in Asia and Latin America Slide 7

8 Protecting high-end products from moisture and oxygen Performance packaging Product protection against moisture and oxygen Designs and manufactures packaging solutions Lifecycle partners in design, molding, assembly, marketing & regulations Two key industry market segments Healthcare packaging Cargo and device protection A global leader in desiccant niche market Largest global product portfolio among specialized competitors Strong technologies: combination active and barrier packaging systems Innovator and leader in the major standard desiccant: canisters Megatrends present growth opportunities Organic growth due to increasing wealth, longer life-spans and increased incidences in chronic diseases Growth of generics increasing volumes of drugs sold Emerging markets will contribute 50-70% of pharmaceutical spending growth in next five years Slide 8

9 Providing solutions for industrial, potable and municipal water treatment Water treatment Clean water is the main objective of our business Water treatment products and services to drinking water and effluent water facility operators Integrated water management solutions for industrial applications Integrated with adsorbents production stream Strong competitive position in niche markets Focus on customer -specific solutions Combination of chemicals, services and advisory Strong presence in the German municipal effluent market and in the industrial water treatment markets in Africa and Latin America Megatrends present growth opportunities Increasing environmental issues and regulatory pressure lead to higher effluent standards Growth in demand in developing regions Increased focus on decontamination and reuse of industrial waste water as a resource Slide 9

10 Agenda Products and markets Improve processes and customer offerings Profitable growth Summary Slide 10

11 Improving margins and costs via Clariant Excellence initiative Mobilization More than 100 people trained around the world More than 70 initiatives ongoing Growing project pipeline Commercial Excellence improving margins Transactional pricing already applied in: Business Line Adsorbents (Food and Feed Additives Europe, Foundry Additives Europe) Business Line Performance Packaging (Healthcare in the US, Cargo Devices & Protection in Europe) Business Line Water Treatment in South Africa Operational Excellence improving cost base Production Excellence Major sites: Moosburg, Germany Belen, USA Puebla, Mexico Gammelsdorf, Germany Supply Chain Excellence Pilot sites: Chloorkop, RSA Puebla, Mexico Sales force effectiveness already applied in all three business lines Net Working Capital Optimization Initiatives applied to all business lines Slide 11

12 Improving customer offerings with complementary technologies and global reach Customer offerings Complementary technologies Creating innovative mold inhibitors for paints through combination of adsorbents and surfactants (BU ICS) Improving healthcare packaging offering through combination of design capabilities of BL Perfomance Packaging and medical masterbatches (BU Masterbatches) Enhancing service to mining customers by creating a new technology platform between BU Oil & Mining Services (OMS) and BL Water Treatment Enhanced geographical reach Stronger presence in Latin America for the BL Water Treatment through combination with BU OMS BL Water Treatment getting access to new customer base in Asia, e.g. paints and textiles BL Performance Packaging and BL Adsorbents benefiting from broad Clariant footprint in Latin America BU OMS getting access to mining industry in SouthAfrica via BL Water Treatment Slide 12

13 Agenda Products and markets Improve processes and customer offerings Profitable growth Summary Slide 13

14 Prioritize growth initiatives for food and feed Growth market for adsorbents for edible oils Increasing edible oil consumption (from 145 mn tons today to 215 mn tons in 2020 and share of palm oil will increase from 36% to 58%) Capacity for bleaching earth production expanded on a global scale High-performance bleaching earth (HPBE) in Moosburg, Germany Tonsil Optimum 210 FF and Tonsil Supreme HPBE in Jacarei, Brazil to follow significant investments and new refineries of major key accounts like ADM, Cargill and Bunge HPBE in Cimapag, Indonesia (existing site) Tonsil 331 Slide 14

15 Capture biofuel purification market Growth of biofuel production in Europe and the US Biofuels starting to take off in the US From 2006 to 2011 biodiesel production grew from 250 to 861 million gallons (28% CAGR) In 2012 the US government announced a USD 510 million investment to further spur biofuel production in the next three years Clariant developing Tonsil 424 FF New water-free purification method of biofuels to support the production of stable, high-performing biofuels Decision documents for investment completed short-term final decision forthcoming Slide 15

16 Globalize our healthcare solution platforms Growth of healthcare manufacturing in India & China Global healthcare packaging market expected to grow to USD 80 billion until 2017 (CAGR of 7.3%) driven by emerging markets with particularly strong growth in China and India BL Performance Packaging well positioned to capture this growth through: New production site in Changshu, China Establishment of new legal entity in India Continued growth in other emerging markets Launch of a new site for protective packaging in Brazil Expand capacity for protective packaging in Turkey Investigate, prioritize and analyze external growth opportunities in emerging markets Slide 16

17 Agenda Products and markets Improve processes and customer offerings Profitable growth Summary Slide 17

18 Summary BU Functional Materials - Sustain, Improve, Grow to Create Value Strong solutions within attractive and mostly resilient end markets (food, healthcare, water) Improving processes and customer offerings through Clariant Excellence initiative and cross-fertilization Capturing opportunities for sustainable profitable growth (edible oils, biofuels purification, healthcare in emerging markets) Slide 18

19 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. Slide 19