Yes, good afternoon. Okay. And we still see supply constraints on some raw materials and still particularly on logistics mostly availability of sea containers as well as trucks for road transport. So turning to Q4 and our expectations there. Our total energy cost is less than 5% of revenue. And the startup of the new plants in China will allow us to shift all of these orders that we have on our books. As you can see on Slide #6, in the third quarter, we reported -- the reported EBITDA increased by 29% to CHF220 million. I was wondering if you could give us a bit more detail on which business lines and also kind of global regions that you were starting to see that. Okay, great. As a reminder last year 15% top line growth, first half 29%. In the third quarter of 2022, the absolute EBITDA increased by 38% and the margin rose to 20% from 17.6%, reflecting a 240 basis point improvement. Two questions both in the Catalyst area. So we did see in the second quarter some orders that were actually pushed into the third quarter by some of our customers, which made it indeed an unusually strong quarter. Please go ahead. The strong top line advance in tandem with pricing measures mitigated the negative impact from higher raw material costs and rising natural gas prices. Clariant AG. Roughly half of our business in Russia actually is for our Catalyst business. It has done for a number of quarters very well and was a stand performance not only in this year, but also last year. Basically, the operating cash flow, yes, we are basically negative on cash flow in the first half versus a slight positive last year. So as far as the restructuring, your first question, Andreas, this is actually not limited to Natural Resources. We also expect to improve the restated group EBITDA margin level on a year-on-year basis. This will help us to deliver our confirmed overall target savings of CHF110 million per annum as announced at our Capital Markets Day in November 2021. And then the second question, if I may is on Sun Liquid. There's a number of elements here. The 38% higher sales in Latin America resulted from strong pricing in Care Chemicals and Natural Resources, and a volume pickup in Natural Resources and Catalysis. So my first question is on the Care Chemicals side where I'm just asking basically the margin level of 22%, the stage that we see, which has been elevated for not just Clariant, but for other companies as well. Be aware that it's not entirely like-for-like. I would suspect that the usual pattern at Clariant that the significant chunk of free cash flow is generated in H2. So that already tells you at 14.5 million cash payment that the earnings were extremely limited on this, and it was actually a unprofitable business. Thank you, Bill. Don't forget that we made two accretive acquisitions here, Indian glycols, which are the bio-based surfactants -- surfactants based on bioethanol. [Operator Instructions] At this time, it's my pleasure to hand over to Andreas Schwarzwaelder, Head of Investor Relations. As you rightly said we are back to our normal corporate calendar. Our team remains committed to taking the next steps to meet our 2025 targets, which we introduced last November. So we are repositioning this business more towards the consumer-facing segments attractive segments like cosmetics, personal care, where actually clients are willing to pay for sustainability performance. And third question is more on restructuring. Please go ahead. I'm very pleased, that we were able during the quarter to announce our supply delivery contracts with Shell. Thank you Christian. Thank you. We specialize in Enterprise Linux Operating Systems, Container Management and Storage, as well as Edge solutions, collaborating with partners and communities to empower our customers to innovate everywhere - from the data center, to the cloud, to the . Thank you, for opportunity to ask question. Download now: Print. What some of our challenges have been in recent quarters have been movements of orders from one quarter into the next quarter. So the 16.2% that we did last year, we are going to end up higher than that. So, I would say that by the fourth quarter, we should be closer to the historic run rates. First, on Catalysts and raw material developments and how this works itself through into our margins. You had some negative one-off effects offset by inventory written valuation. And thanks Rob for the question. Sure. And I will leave it to Bill to provide a bit more detail on the effects of inventory revaluation and some incidental effects. However, all geographic regions boosted sales, mostly driven by Europe, North America, Latin America and the Middle East and Africa. Conrad, you mentioned that there was a delay. We further have taken out a layer of management by having the three global business units directly reporting to the CEO. And then just looking at your guidance for the third quarter for Catalysis, I think strong EBITDA margin increased versus prior year's level. Higher pricing will offset raw material inflation and further cost savings and continued cost discipline will help to sustain our profitability. So is it the unfavorable product mix energy road map and then ramp-up costs. And finally, we mentioned project costs, sort of one-off costs to the start-up of the new plants, that's actually a small portion. We give an extra income stream to the farmers, for their rate products, which we then convert into sugars and finally into bioethanol. Porsche at a Glance. This second line is expected to come onstream during 2024. As a final housekeeping comment, please note that the figures discussed today refer to continuing operations unless specifically noted otherwise. Too many layers between myself and a sales representative visiting customers. Copyright Clariant 2022. The model is clearly -- they are the ones building the plants. Our new organization setup will reduce complexity of the organization by removing organizational layers, increasing accountability and improving customer proximity. Yeah. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Yes. We will now open the line for questions. Sales increased markedly by 24% in local currency in the second quarter, due to growth in all regions and in all three business units, with particularly strong expansion in additives. A question actually for Bill and maybe Conrad can also give you thoughts on this. Structured as an asset deal, the transaction includes the transfer of land as well as mining rights, the processing facility, and . In terms of your question on restructuring charge and sort of as an indication, unfortunately, we first obviously, like to talk to our employees, to our employee representatives and works council. This question actually for Bill. Yes. Group sales rise to EUR 4.7 billion (+18.9%) EBITDA of EUR 547 million (-33.0%) above own guidance Net income totals EUR 199 million (-55.7%) Free operating cash flow (FOCF) falls to EUR -462 million Full-year guidance 2022 adjusted Continued f In Industrial Applications, all key business lines contributed to the growth, especially Coatings and Aviation, which despite its seasonal nature benefited from late winter weather conditions in specific geographic regions. Catalysis sales rose by a strong 28% in local currency versus the solid comparison base in the third quarter of 2021. The proceeds of CHF175 million will be used for eligible assets, which will drive sustainable innovation to support Clariant's purpose led growth strategy. Is this happening to you frequently? Can you hear me now? So, that's the first question. And also here we had actually a good strong revenue growth. https://www.wsj.com/articles/clariant-ag-investor-alert-01662763410. Group Structure and Shareholders. Yes. We've detected you are on Internet Explorer. As far as your question on the anchor shareholder, I'm actually very pleased that anchor shareholder SABIC, but also the former [indiscernible] German family shareholders we have more anchor shareholders in the company that they actually maintain this long-term perspective that they actually are fully supportive of the strategy that we summarized that announced last year in November at the Capital Markets Day which is all about stepping up growth, boost organic first and foremost I would always say organic, complemented by bolt-on acquisitions and then finally, to get the margins up to basically leading performance in the industry. So yes, and maybe one thing to add, do the mathematics that you just present. Copyright 2022 Surperformance. We continue to forecast a recovery for our Catalyst business in the third and fourth quarter based on the strong order book for margin-accretive CATOFIN catalyst. Clariant expects the Catalysis performance to further improve despite a continued burden from the sunliquid ramp-up. So should we think that [technical difficulty] next year, this 22% margin level sort of can be maintained? Source: Clariant AG via GlobeNewswire HUG#2214600. Ladies and gentlemen, good afternoon, and welcome. Okay. Can you -- I know you've given some color on Q4 on a year-on-year basis, but I'm just curious on a quarter-on-quarter basis, so compared to third quarter and on an underlying basis, so excluding the special items. I would expect our higher EBITDA combined with lower CapEx spend, than what we had in 2021 combined with improved inventory management to see that see that figure improve. Yes, sure. Yeah, as to your first question margins in Care Chemicals this is obviously our star performer right now and we are extremely pleased with the margins that we saw in the second quarter at an unprecedented high level. And with that said, we did come out last year, with a 40% free cash flow conversion target. With that, I would like to turn the call back over to Andreas. Maybe talk slowly. Although Care Chemicals sales increased by 24% in local currency, supported by double-digit organic sales growth in both consumer care and industrial applications, the quarter was also characterized by softening demand and selective customer destocking which resulted in a flat volume development for the quarter. Yes we do expect that later this year, and hopefully we'll be able already in Q3 to come up with some announcements. There are substantial differences in margins between on the one hand our so-called specialty Catalyst business, which in reality is a bit more a commoditized part of the business, where it's primarily about emission control Catalysts, that typically do not achieve the higher margins that we see in Syngas, in petrochemicals, where we have very unique products with yes -- with much higher margins. The corresponding EBITDA margin rose by 130 basis points to 16.8%, increasing from the 15.5% reported in the third quarter of 2021. News Center. We were very pleased with the volume pickup in the third quarter, 27% versus the same quarter last year. Thank you, Markus for your two questions. Yes. So I get the message there on the charges. I guess the most cynic argument will be -- your cynical argument is we saw the same pattern with other second generation projects where there was promising development at the pilot stage. What we noted at the time when we were looking in more detail at the overall [indiscernible] setup was that we had some instances where we had, literally as an example, 11 layers of management between myself and an operator in one of our plants. And then the second question is more of a technical one around the Catalysis contracts. Thank you. All of which part of the CHF110 million that we commented on in the Capital Markets Day last year as part of that overall program of activity. Please. Sign In. This enables us to consistently grow above the market and deliver above-average returns. Please go ahead. There will be, as usual, a Q&A session following our presentation. So that implies a pretty dramatic volume decline. Yes, Andrew, so regarding your other question on Catalysis and why are sort of the price increase is not coming through yet to the extent that maybe you had anticipated. Can you comment on how you see underlying margins year-on-year in Q4, please? And I'm very pleased with that and half of it is sort of organic and half of it is bolt-on. Our leading specialty chemicals portfolio holds strong market positions in our three Business Areas (Care Chemicals, Catalysis and Natural Resources), resulting in high quality, high margin, and resilient business. As a result, the share of Additive sales in Natural Resources has continuously increased while the EBITDA margin at Additives continues to be significantly above the average of the Natural Resources business area. For the best Barrons.com experience, please update to a modern browser. I wanted to see if you can provide any details or quantify how much of your -- you've realized in the first 9 months of incremental EBITDA from efficiencies and market growth, please. In Natural Resources sales increased 24% in local currency with significant growth in our additive business from framed targets and in our Functional Minerals business for the purification of oils and we saw strong recovery in our oil and gas business. We provide technology. Yeah, unfortunately it's not up to me to comment on the exact dates of when plants will be built and where. Dial the AT&T Direct Dial Access code for. We are obviously committed to create value for all of our shareholders. And in fact, if you look at the operating cash flow without the impact of net working capital changes, we did see a 10% improvement year-over-year. Perfect. This will be actually incremental for both sales as well as EBITDA margin. What limits the yield? We have set out a clear and ambitious long . Clariant and Technip Energies recently got recognized with two industry awards. So if I take the 9-month number and take off the CHF5.1 billion to get the implied Q4, it sort of suggests there's no growth in revenue in Q4, which I think, Bill, as you said in your slide narrative, 18% you're carrying into Q4 on pricing. Good afternoon, everyone. But yes, the vast majority will be. So we have, I would say, an elevated confidence level on our order book in Catalyst very much indeed also due to the strong order and order intake that we see on CATOFIN. INVESTOR RELATIONS Andreas Schwarzwlder Phone +41 61 469 63 73 . This is a prerequisite for being successful, for generating the greatest value for society by addressing its largest challenges. Investor Relations Clariant AG CLN Stock Quote Morningstar Rating | Rating as of Oct 26, 2022. If you look more broadly, globally what we see is actually a mixed picture. So what are the savings that are associated with those efforts? Corporate Media Relations: Investor Relations Jochen Dubiel Phone +41 61 469 63 63 jochen.dubiel@clariant.com: Maria Ivek Phone +41 61 469 63 73 maria.ivek@clariant.com: Claudia Kamensky Phone +41 61 469 63 63 claudia.kamensky@clariant.com: Alexander Kamb Phone +41 61 469 63 73 alexander.kamb@clariant.com: Thijs Bouwens Phone +41 61 469 63 63 . Yes. Clariant delivered strong sales growth in the second quarter of 2022 with an increase of 29% in local currency versus the second quarter of 2021. Thank you, Conrad. As a final housekeeping comment, please note that all figures discussed today refer to continuing operations unless specifically noted otherwise. The last question for today comes from Jean-Baptiste Rolland from Credit Suisse. We got CHF10 million savings in the first 9 months. So I think that's really positive. We were actually extremely pleased with the ramp-up during COVID times in the second quarter of this new plant. And the second question, is on the sunliquid startup. Then we have sort of the big buckets as you refer to them is first of all, the unfavorable product mix. So if you do 50 million of restructuring charges, that implies you're getting annualized cost savings of say CHF30 million to CHF50, is that fair? However, weve this restructuring charges, which clearly are a one-off. Are these issues process related? Moving to the discussion of our third quarter development by business area, I will start with Care Chemicals on Slide 11. Conrad, sorry, can I just steal a tiny third question? So, yes, as you can imagine, we continue to be very committed to make this all work. The foundry business also increased sales at a low single-digit rate, again, exceeding the absolute levels achieved in the second quarter of 2019 prior to the COVID-19 pandemic. So of the CHF220 million EBITDA that we had in Q3 about CHF2 million of that was specific efficiency programs, sorry. Yes, a couple of questions, please. Thank you, Conrad. Because we've been waiting for cash flow improvement. Sorry, Jaideep, we lost the connection for a while. We are confident we can deliver value for all our stakeholders by executing on our strategy, creating sustainable solutionsto address the key challenges of our time. Download Investor Relations App. However, this is not a derailing event in terms of free cash flow. Yes, Christian. The next question comes from Chetan Udeshi from JPMorgan. Last year's numbers is not for us the bar. So I think, if you look at our Care Chemical business it is structurally better positioned towards the more attractive markets segments. And just if you could just talk about the third quarter, how you started the quarter as you see in the month of July so far and just in general, some comments on what you're seeing on demand would be very helpful. Yourselves and quite a few of your peers have seen a market improvement in margins in the whole EO chain in the last sort of four quarters. And then on your question with regard to restructuring, yes, there will be a cash impact of the restructuring. Absolutely. But it is -- yes, it is quite a significant part of that 27% pickup, which is going to stay also into quarters to come. We create added value by appreciating the needs of our customers with competitive and innovative solutions. The 29% growth included 5% organic volume growth and 4% contribution from the consolidation of our joint venture with India Glycols and from Baraka, our Natural Ingredients acquisition in Brazil. Our performance improvement programs remain on track and we are committed to the implementation of our new operating model. We are pleased to confirm that we are on track to deliver the targeted savings announced at our Capital Markets Day in November 2021. Hi, gentlemen. An important step to enable the delivery of our growth strategy is the implementation of our new operating model, which we started on the 1st of July. Our joint venture with India Glycols and the Beraca acquisition boosted sales growth by approximately CHF43 million in the second quarter. Is that a measure of how soft volumes are? Please note that all information provided today reference the reported Q3 9 months 2022 results and the restated Q3 9 months 2021. But for us it is about delivering shareholder value for all of our shareholders. Thank you. Overall, we do see industry inventory levels at an elevated level right now. View recent and archived quarterly results, annual reports, conference presentations, and more. Firstly, we increased our selling prices by 18% and year-on-year versus the third quarter of 2021. In terms of where we go from here, I would say that for the full year 2022, we do expect to improve free cash flow from the relatively muted level that -- 2021. As we previously communicated, in the fourth quarter, we expect to report continued sales growth based on higher prices, but weaker volumes, in part due to the higher comparison base and in part due to the anticipated economic slowdown. Looking at our robust second quarter development by business area, let's start with Care Chemicals on Slide 9. Can you detail that? And then finally, the new operating model, which you talked about with the restructuring charges, it sounds like that's going to involve headcount reductions from the sound of your comments they're going to be towards the upper end of the average salary range for the company. But as we discussed last time, it is in a situation that is with a gradual decline as opposed to a precipitous fall. Thank you so much. Thanks. Thanks. So if I could [indiscernible] a guess on the fourth quarter volume performance, I mean, it sounded like it could be less than 27%, but probably more like -- more than 10% on accounts of the continued ramp-up of the China plant, is that fair? And given my background, what I really like doing is, being part of those transformations. Joining me today, as usual, is Conrad Keijzer, Clariant's CEO; and Bill Collins, Clariant's CFO. The difference between this figure . Joining me today are Conrad Keijzer, our CEO as usual and it's my pleasure to welcome and introduce Bill Collins who took office as our new CFO 28 days ago. Our new team remains committed to taking the next steps to meet our 2025 targets, which we introduced last November. Obviously, if you have further questions coming up, please refer to the Investor Relations team. This is an offtake contract for all of the volume. There is, indeed, as you mentioned, the additional business that we see coming in from China for our CATOFIN business, that is definitely an effect. Conrad will start today's call by providing a summary of the third quarter development followed by Bill, who will guide you through the group's financials and provide some brief business area comments. Maybe just as a recap, this is all about yes, taking out complexity, reducing the number of layers of management in the organization getting basically to more empowered roles, particularly in the frontline so that we basically increase customer centricity, but also faster decision-making and become a bit more entrepreneurial company. Ladies and gentlemen, welcome to the Clariant Third Quarter 9 Months Figures 2022 Conference Call and Live Webcast. So what you see is that actually two-thirds of the business now is consumer-facing and what you see is that the share of business within Care Chemicals of the consumer applications is actually significantly up in relation to the industrial segments. I mean the headline numbers that we disclosed were a top line last year of US$113 million. Let me now hand over to Conrad to begin our presentation. But you're pointing out to a couple of structural reasons. So they indeed have not picked up yet from last year with the EBITDA margin at 11.5% in the third quarter. So we do need to take them into account. Typically, what we would see is a payback of somewhere in between 1 and 1.5 years for this restructuring. Thank you. This is quite a substantial amount. Ladies and gentlemen good afternoon. I think our objective for the end of this year is to show a market improvement in free cash flow and free cash flow conversion relative to what we generated in 2021.
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