Clariant achieved substantial growth in 2017, further boosting profitability

"Clariant achieved a paradoxical revenue growth in 2017 and improved absolute EBITDA." CEO Hariolf Kottmann said: "These results are particularly encouraging with contributions from various business sectors contributing to this growth Clariant continues to steadily and effectively implement its corporate strategy to achieve its goals steadily, and our achievements are mainly based on innovation and sustainability, and we believe further growth in local currency and cash flow and earnings from operating activities by 2018 Rate increase. '

Full Year 2017: Sales Rise, Absolute EBITDA Continues to Increase

Muttenz, Switzerland, February 27, 2018 - Clariant, the world's leading maker of specialty chemicals, today announced sales for the full year of 2017 totaling 6,377 million Swiss francs, up from 5,847 million Swiss francs a year earlier In local currency terms, sales increased 9% due to double-digit growth in catalysts and natural resources business, strong organic growth of 6% due to the year-on-year sales growth in all business sectors.

Sales in Asia, the Middle East and Africa, and Europe posted the strongest growth in local currency terms for all of 2017. Sales in Asia increased 12% YoY thanks to significant sales growth in China, Southeast Asia and Japan. Sales in the Middle East and Africa increased 15% YoY while those in Europe increased 7%. A series of acquisitions boosted sales in North America by 11% YoY. Sales in Latin America remained flat despite the challenging macroeconomic environment. In the second half of 2017, there are still signs of growth.

Sales for the year increased significantly due to growth in all segments of the business. Sales of nursing chemicals and catalysts were particularly strong, mainly due to the booming consumer care and industrial applications business, sales of nursing chemicals in local currency Representing an increase of 8% over the same period of last year. The catalyst business performed extremely well with a positive contribution from each business chain, an increase of 13% over the same period of previous year.

In North America, the acquisition of Kel-Tech and X-Chem boosted natural gas sales by 14%. Organic sales of natural resources increased YoY due to the steady growth of functional minerals and the initial recovery of the oil and mining services business 3%. Plastics and coatings sales rose 5%, sales growth in all three business units, particularly strong growth in China.

In Swiss francs, EBITDA excluding special items increased to 974 million Swiss francs from 887 million Swiss francs in the previous year, an increase of 10% over the same period of 2006. The increase in absolute profitability was attributed to the positive development in all business areas.

Accordingly, the EBITDA margin excluding special items increased to 15.3%.

Net profit increased to CHF 302 million from CHF 263 million in the previous year, up 15% from the previous year, thanks to the increase in absolute EBITDA, net of exceptional items, and lower finance costs, offsetting one-time costs and taxes Cost increases.

The strong demand at the end of the fourth quarter of 2017 and expected strong demand in the first quarter of 2018, especially catalyst demand, led to a temporary increase in one-off cost cash expenditures and a rise in net working capital, so cash flow from operating activities fell to 428 million Swiss francs.

Net debt was 1.539 billion Swiss francs, which is essentially the same as the 1.40 billion Swiss francs at the end of 2016.

As Clariant's performance continues to improve, the Board of Directors proposes to submit a proposal for a dividend of 0.50 Swiss francs per share to the annual general meeting, on the basis of which the dividend will increase by 11% from the same period of last year. , It is exempt from Swiss withholding income tax.

Q4 2017: Sales and profitability further increased

Clariant posted sales of CHF 1,679 million in the fourth quarter of 2017, a 6% YoY increase in local currency due to higher sales in all business areas. Organic sales growth in local currency Is 5%.

Almost all regions contributed to this growth, with sales in Asia increasing by 10% in local currency terms and China maintaining strong growth in sales in Europe by 6% in local currency terms, sales in the Middle East and Africa An increase of 11% .The situation in the Americas is mixed.Although the situation in North America is not optimistic, there has been a clear recovery in Latin America, sales in the local currency, a steady increase of 7%.

In local currency terms, sales of care chemicals increased 7% YoY, due to improved sales driven by improved pricing, and sales of catalysts increased YoY as a result of further product shift from the fourth quarter to the third quarter1 %. Natural resource sales increased 5% YoY in local currency terms thanks to the positive contribution from functional minerals and oil and mining services business. Plastic and coating sales increased 8%, sales in all three business units Made a contribution to this growth.

Driven by the growth in sales of chemicals and natural resources care and sustained and steady growth in the plastics and coatings business, EBITDA excluding special items increased to CHF 257 million in Swiss francs, compared to CHF 235 million for the previous year, An increase of 9%. Therefore, the group-level EBITDA margin for special items increased to 15.3% from 15.2% of the previous year.

Prospects: Continue to promote sales growth, profitability and business activities to generate cash flow generated

Clariant expects the good economic conditions that will emerge in mature markets, which represent a high-benchmarking benchmark, to continue, with signs of recovery in Latin America and promising support from emerging markets.

Clariant is confident of achieving sales growth in local currency in 2018, boosting absolute EBITDA and EBITDA margins for operating cash flow generation and exceptional items.

Clariant has set its mid-term goal of becoming one of the leaders in the specialty chemicals industry, which means that companies need to increase margins for EBITDA, exceptional items, to 16% to 19%, making return on investment (ROIC) Higher than the industry average.

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