Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 1 of 16

Financial Review
Nine Months/Third Quarter
4 November 2009

www.clariant.com

Clariant International Ltd

Rothausstrasse 61
CH-4132 Muttenz 1, Switzerland
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 1 of 16

Key Financial Group Figures

Nine Months Third Quarter

2009 2008 2009 2008
CHF mn % of sales CHF mn % of sales CHF mn % of sales CHF mn % of sales

Sales 4 904 100.0 6 327 100.0 1 691 100.0 2 094 100.0

Local currency growth (LC): – 18% – 14%

Organic growth  1 – 18% – 14%
Acquisitions / Divestitures 0% 0%
Currencies – 4% – 5%

Gross profit 1 359 27.7 1 874 29.6 509 30.1 615 29.4
EBITDA before exceptionals 331 6.7 679 10.7 163 9.6 242 11.6
EBITDA* 206 4.2 589 9.3 132 7.8 198 9.5
Operating income before exceptionals* 163 3.3 488 7.7 107 6.3 178 8.5
Operating income 3 0.1 377 6.0 71 4.2 119 5.7
Net loss / income from continuing operations – 127 2.6 171 2.7 25 1.5 79 3.8
Net loss / income – 127 2.6 170 2.7 25 1.5 78 3.7
Operating cash flow 533 174 193 147

Discontinued operations:
Net loss from discontinued operations – – 1 – – 1

Other key figures: 30.09.2009 31.12.2008

Net debt 751 1 209
Equity (including non-controlling interests) 1 953 1 987
Gearing 38% 61%
Number of employees 18 185 20 102
1 
Throughout this statement the term “organic growth” is being used. It means volume and price effects excluding the impacts of changes in FX rates and acquisitions/divestitures.
* See Definitions of Terms of Financial Measurement on page 4.
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 2 of 16

Financial Discussion THIRD Quarter

Economic Environment

The global economy has stabilized over the last few months but with
differences from region to region. While some fast–growing emerging
markets such as Brazil, China and India have started to recover, driven by
strong domestic demand, business conditions in the United States, Europe
and Japan remain extremely difficult. Although global economic forecasts
have improved in the recent past, the outlook for the chemical industry
remains subdued. The industry will continue to be challenged by sustainably
lower volumes, pressure on sales prices and rising raw material costs.
The US dollar lost value against major currencies during the third quarter
of 2009; its value has also decreased compared to the third quarter of the
previous year. Compared to the Swiss franc, the average exchange rate
of the euro was weaker year-on-year but stable compared to the second
quarter 2009.
Sales and Operating Results
Consolidated sales from continuing operations decreased by –19%
in Swiss francs and by –14% in local currency terms compared with the
third quarter of the previous year. Given the difficult trading conditions,
sales prices eroded in most divisions and businesses in comparison to the
same period a year earlier.
The gross margin increased to 30.1% in the third quarter compared to
29.4% in the same period a year earlier. The negative effects of costs for
the underutilization of production capacities and lower sales prices have
been offset by a 16% reduction in raw material costs and savings achieved
from restructuring measures.
Net financial result in the third quarter of 2009 was CHF –28 million
compared to CHF –12 million in the prior-year period. This was entirely
due to foreign exchange losses of CHF 4 million in the third quarter of
2009 compared with exchange rate gains of CHF 13 million in the previous
year’s period. The swing in foreign currency is almost entirely due to the
weakening of almost all major currencies (except Brazilian real, Japanese
yen) against the Swiss franc in the third quarter of 2009. This has led to
substantial realized losses on intragroup transactions as well as some
unrealized valuation losses on especially intragroup financing positions.
The net financial result before foreign currency impact is almost the same
in both periods.
Tax expenses in the third quarter of 2009 were negatively influenced by
non-tax effective idle cost, impairment and restructuring costs and foreign
exchange losses that were only partly tax effective.
Net income from continuing operations before minorities amounted
to CHF 25 million in the third quarter of 2009. This compares to a gain of
CHF 79 million reported in the same period of 2008. The main reason for
this variance lies in the lower operating income and a negative currency
result.
No income/loss from discontinuing operations was recorded during the
third quarter of 2009.

Marketing, distribution, administration, and general overhead

costs accounted for 22% of sales compared to 19.3% recorded in the
third quarter of 2008. The unfavourable development in percentage of
sales was due to lower sales volume. In absolute terms, SG&A costs fell by
CHF 31 million in a year–on–year comparison as a result of sustainable cost
reductions and favourable foreign exchange developments.

Research and development costs of CHF 36 million in the third quarter

of 2009 are below the level recorded in the same quarter of the previous
year (CHF 46 million).

Income from associates decreased to CHF 7 million in the third quarter

of 2009. This compares to CHF 13 million in the corresponding period of the
previous year.

Restructuring costs and impairments in the amount of CHF 38 million

reflect mainly the program for a sustainable cost reduction (“Project
Clariant”).
Clariant International Ltd
Condensed Financial Statements
Third Quarter 2009 (unaudited)
4 November 2009
Page 3 of 16
Balance Sheet Key Figures
Total assets increased to CHF 6.114 billion as of 30 September 2009, from
CHF 5.946 billion at the end of 2008. The most important event contributing
to this effect was an increase in cash and cash equivalents, which was
partly offset by the reduction of the net working capital.
Cash and cash equivalents increased to CHF 995 million as of 30
September 2009, from CHF 356 million at the end of 2008. This was a result
of the issuance of a convertible bond in the amount of CHF 300 million and
an improved net working capital management during the first nine months
of 2009.
Current financial debt decreased to CHF 175 million as of 30 September
2009, from CHF 268 million at the end of 2008, whereas non-current
financial debt increased to CHF 1.571 billion as of 30 September 2009,
from CHF 1.297 billion at the end of 2008 due to issuance of the convertible
bond in July 2009.
Equity decreased to CHF 1.953 billion as of 30 September 2009, from
CHF 1.987 billion at the end of 2008. This was the result of a net loss of
CHF 127 million incurred during the reporting period, which was partially
compensated by the positive impact of the currency exchange rate
movements.
Net debt decreased to CHF 751 million as of 30 September 2009, from
CHF 1.209 billion at the end of 2008.
Gearing, which reflects net financial debt in relation to equity including
minorities, decreased to 38% as of 30 September 2009, from 61% at the
end of 2008.
Cash Flow
Cash flow from operating activities before changes in working
capital was CHF 78 million for the third quarter 2009, compared with
CHF –26 million for the immediately preceding quarter and CHF 143 million
for the same period one year earlier. The operating cash flow before
changes in net working capital and provisions for the first nine months of
2009 was CHF –2 million, compared to CHF 392 million for the first nine
months of 2008.
Working capital decreased by CHF 115 million during the third quarter
of 2009, compared to a decrease of CHF 4 million for the same period
of 2008. In the first nine months of 2009, working capital decreased by
CHF 535 million, compared to an increase of CHF 218 million for the same
period of the prior year.
Cash flow from operating activities stood at CHF 193 million for the
third quarter of 2009, compared to CHF 184 million for the immediately
preceding quarter and CHF 147 million for the same period one year earlier.
For the first nine months of 2009, cash flow from operating activities
amounted to CHF 533 million, compared to CHF 174 million for the same
period one year earlier.
Capital expenditure (PPE) stood at CHF 26 million for the third quarter,
compared to CHF 29 million for the second quarter of 2009, and CHF 70
million for the same period one year earlier. For the first nine months of
2009, capital expenditure amounted to CHF 96 million, compared to CHF
177 million for the first nine months of 2008.
Investment activities in 2009 include an investment in a joint venture
in China pertaining to the Pigments & Additives division in the amount of
CHF 17 million. In the prior year, fixed-term deposits in the amount of about
CHF 125 million expired in 2008, which IFRS require to be reported as an
investing activity.
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 4 of 16

Definition of Terms of Financial Measurements (UNAUDITED)

The following financial measurements are supplementary financial EBITDA

indicators. They should be considered in addition to, not as a substitute for, – (Earnings Before Interest, Taxes, Depreciation and Amortization) is
operating income, net income, operating cash flow and other measures of calculated as operating income plus depreciation of PPE, plus impairment
financial performance and liquidity reported in accordance with International of PPE/goodwill and amortization of intangibles, and can be reconciled from
Financial Reporting Standards (IFRS). the Condensed Financial Statements as follows:

EBITDA

Nine Months Third Quarter

CHF mn 2009 2008 2009 2008
Operating income 3 377 71 119
+ Depreciation of PPE 160 184 53 62
+ Impairment of PPE / goodwill 35 21 5 15
+ Amortization of other intangibles 8 7 3 2
EBITDA 206 589 132 198

EBITDA before exceptional items

– is calculated as EBITDA plus expenses for restructuring and impairment less impairment of PPE / goodwill and gain / loss on disposals.

EBITDA before exceptionals

Nine Months Third Quarter

CHF mn 2009 2008 2009 2008
EBITDA 206 589 132 198
+ Restructuring and impairment 167 113 38 60
– Impairment of PPE / goodwill (reported under Restructuring and impairment) – 35 – 21 – 5 – 15
– Gain on disposals of subsidiaries and associates – 7 – 2 – 2 – 1
EBITDA before exceptionals 331 679 163 242

Operating income before exceptional items

– is calculated as operating income plus restructuring and impairment and gain / loss on disposals

Operating income before exceptionals

Nine Months Third Quarter

CHF mn 2009 2008 2009 2008
Operating income 3 377 71 119
+ Restructuring and impairment 167 113 38 60
– Gain on disposals of subsidiaries and associates – 7 – 2 – 2 – 1
Operating income before exceptionals 163 488 107 178

Net debt
– is the sum of current and non-current financial debt less cash and cash equivalents and current deposits reported in other current assets.

Net debt

CHF mn 30.09.2009 31.12.2008

Non-current financial debt 1 571 1 297
+ Current financial debt 175 268
– Cash and cash equivalents – 995 – 356
– Current deposits 90 to 365 days – –
Net debt 751 1 209
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 5 of 16

condensed financial statements of the clariant group

Consolidated statements of financial position (unaudited)

ASSETS 30.09.2009 31.12.2008

CHF mn % CHF mn %

Non-current assets
Property, plant and equipment 1 969 2 010
Intangible assets 300 283
Investments in associates 271 275
Financial assets 19 21
Prepaid pension assets 112 119
Deferred income tax assets 75 67
Total non-current assets 2 746 44.9 2 775 46.7

Current assets
Inventories 959 1 373
Trade receivables 1 111 1 110
Other current assets 270 300
Cash and cash equivalents 995 356
Current income tax receivables 30 32
Total current assets 3 365 55.1 3 171 53.3

Non-current assets held for sale 3 – 0.0

Total assets 6 114 100.0 5 946 100.0

EQUITY AND LIABILITIES 30.09.2009 31.12.2008

CHF mn % CHF mn %

Equity
Share capital 921 921
Treasury shares (par value) – 19 – 15
Other reserves 465 364
Retained earnings 537 667
Total capital and reserves attributable to Clariant Shareholders 1 904 1 937
Non-controlling interests 49 50
Total equity 1 953 31.9 1 987 33.4

Liabilities
Non-current liabilities
Financial debts 1 571 1 297
Deferred income tax liabilities 111 134
Retirement benefit obligations 491 478
Provision for non-current liabilities 221 191
Total non-current liabilities 2 394 39.2 2 100 35.3

Current liabilities
Trade payables 965 1 011
Financial debts 175 268
Current income tax liabilities 253 243
Provision for current liabilities 374 337
Total current liabilities 1 767 28.9 1 859 31.3
Total liabilities 4 161 68.1 3 959 66.6
Total equity and liabilities 6 114 100.0 5 946 100.0
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 6 of 16

Consolidated income statements (unaudited)

Nine Months Third Quarter

2009 2008 2009 2008
CHF mn % CHF mn % CHF mn % CHF mn %

Sales 4 904 100.0 6 327 100.0 1 691 100.0 2 094 100.0

Costs of goods sold – 3 545 72.3 – 4 453 70.4 – 1 182 69.9 – 1 479 70.6
Gross profit 1 359 27.7 1 874 29.6 509 30.1 615 29.4

Marketing and distribution – 752 15.3 – 928 14.7 – 251 14.8 – 301 14.4
Administration and general overhead costs – 349 7.1 – 347 5.5 – 122 7.2 – 103 4.9
Research and development – 113 2.3 – 139 2.2 – 36 2.1 – 46 2.2
Income from associates 18 0.4 28 0.4 7 0.4 13 0.6
Gain from the disposal of activities not qualifying as discontinued operations 7 0.1 2 0.0 2 0.1 1 0.0
Restructuring and impairment – 167 3.4 – 113 1.8 – 38 2.3 – 60 2.9
Operating income 3 0.1 377 6.0 71 4.2 119 5.7

Finance income 7 0.1 15 0.2 2 0.1 6 0.3

Finance costs 1 – 90 1.8 – 113 1.8 – 30 1.8 – 18 0.9
Loss / income before taxes – 80 1.6 279 4.4 43 2.5 107 5.1

Taxes – 47 1.0 – 108 1.7 – 18 1.0 – 28 1.3

Net loss / income from continuing operations – 127 2.6 171 2.7 25 1.5 79 3.8
Discontinued operations:
Income from discontinued operations – – 1 – – 1
Net loss / income – 127 2.6 170 2.7 25 1.5 78 3.7

Attributable to:
Shareholders of Clariant Ltd – 138 162 20 75
Non-controlling interests 11 8 5 3
Net loss / income – 127 2.6 170 2.7 25 1.5 78 3.7

Basic earnings per share attributable – 0.61 0.72 0.09 0.34

to the shareholders of Clariant Ltd (CHF / share):
Diluted earnings per share attributable – 0.61 0.71 0.09 0.33
to the shareholders of Clariant Ltd (CHF / share):
1 
Currency impact YTD 2009 of CHF –18 mn YTD September 2008 of CHF –35 mn, Q3/09 of CHF –4 mn Q3/08 of CHF +13 mn
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 7 of 16

Consolidated statements of other comprehensive income (unaudited)

Nine Months Third Quarter

CHF mn 2009 2008 2009 2008
Net loss / income – 127 170 25 78
Other comprehensive income:
Net investment hedge – 11 46 10 15
Currency translation differences 77 – 167 – 38 – 21
Less: Reclassification adjustment due to CTA recycling on return of a net investment 3 – 1 – –
Other comprehensive income for the period, net of tax 69 – 122 – 28 – 6

Total comprehensive income for the period – 58 48 – 3 72

Attributable to:
Shareholders of Clariant Ltd – 68 47 – 6 69
Non-controlling interests 10 1 3 3
– 58 48 – 3 72
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 8 of 16

Consolidated statements of cash flows (unaudited)*

Nine Months Third Quarter

CHF mn 2009 2008 (Restated)* 2009 2008 (Restated)*
Net loss / income – 127 170 25 78
Adjustment for:
Depreciation of property, plant and equipment (PPE) 160 184 53 62
Impairment and reversal of impairment 35 21 5 15
Amortization of intangible assets 8 7 3 2
Impairment of working capital 61 52 16 16
Income from associates – 18 – 28 – 7 – 13
Tax expense 47 108 18 28
Net financial income and costs 64 63 23 25
Gain from the disposal of activities not qualifying as discontinued operations – 6 – 1 – 1 –
Gain on disposal of discontinued operations – – 1 – – 1
Other non-cash items 3 14 7 – 17
Total reversal of non-cash items 354 419 117 117

Dividends received from associates 28 34 – 3

Interest paid – 65 – 86 – 3 – 7
Interest received 6 12 3 3
Income taxes paid – 67 – 95 – 19 – 31
Payments for restructuring* – 131 – 62 – 45 – 20
Cash flow before changes in working capital and provisions – 2 392 78 143

Changes in inventories 397 – 278 18 – 138

Changes in trade receivables 6 – 92 – 35 28
Changes in trade payables – 62 – 12 39 4
Changes in other current assets and liabilities 32 57 34 36
Changes in provisions (excluding payments for restructuring)* 162 107 59 74
Cash flow from operating activities 533 174 193 147

Investments in PPE – 96 – 177 – 26 – 70

Investments in financial assets and associates – 6 – 22 – – 5
Investments in other intangible assets – 24 – 11 – 5 – 4
Changes in current financial assets 5 126 2 1
Sale of PPE and intangible assets 8 10 3 4
Acquisition of companies, businesses and participations – – 41 – – 38
Payments for the disposal of discontinued operations – 3 – 14 – –
Proceeds from the disposal of subsidiaries and associates 41 2 34 – 1
Cash flow from investing activities – 75 – 127 8 – 113

Reduction of share capital to shareholders of Clariant Ltd 31 – 57 31 –

Treasury share transactions – 11 – – 6 –
Proceeds from financial debts 397 281 306 73
Repayments of financial debts – 228 – 494 – 73 – 54
Dividends paid to non-controlling interests – 11 – 5 – 3 –
Cash flow from financing activities 178 – 275 255 19

Currency translation effect on cash and cash equivalents 3 – 11 – 6 2

Net change in cash and cash equivalents 639 – 239 450 55
Cash and cash equivalents at the beginning of the period 356 509 545 215
Cash and cash equivalents at the end of the period 995 270 995 270
* In this presentation, payments for restructuring are disclosed separately to increase the meaningfulness of "Cash flow before changes in working capital and provisions". Previously the payments for restructuring were included in
the line "Changes in provisions". The prior period presentation has been restated as follows for nine months: "Changes in provisions" adjusted from CHF 45 mn to CHF 107 mn and due to the "Payments for restructuring" of CHF -62
mn, the "Cash flow before changes in working capital and provisions" has changed from CHF 454 mn down to CHF 392 mn.
For the third quarter: "Changes in provisions" adjusted from CHF 54 mn to CHF 74 mn and due to the "Payments for restructuring" of CHF -20 mn, the "Cash flow before changes in working capital and provisions" has changed from
CHF 163 mn down to CHF 143 mn.
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 9 of 16

Consolidated statement of changes in equity (unaudited)

Nine Months
Other reserves

Total Treasury Share Cumulative Total Retained Total Non- Total

share shares premium translation other earnings attributable controlling equity
capital (par value) reserves reserves reserves to equity interests
CHF mn holders

Balance 31 December 2007 978 – 16 767 – 125 642 709 2 313 59 2 372
Total comprehensive income for the period – 115 – 115 162 47 1 48
Dividends to non-controlling interests – – – 5 – 5
Share capital reduction – 57 – – 57 – 57
Employee share & option scheme:
Effect of employee services – 7 7 7
Treasury share transactions 2 – – 5 – 3 – 3
Balance 30 September 2008 921 – 14 767 – 240 527 873 2 307 55 2 362

Balance 31 December 2008 921 – 15 767 – 403 364 667 1 937 50 1 987
Total comprehensive income for the period 70 70 – 138 – 68 10 – 58
Dividends to non-controlling interests – – – 11 – 11
Equity component of convertible bonds 31 31 31 31
Employee share & option scheme:
Effect of employee services – 8 8 8
Treasury share transactions – 4 – – 4 – 4
Balance 30 September 2009 921 – 19 798 – 333 465 537 1 904 49 1 953
Clariant International Ltd
Condensed Financial Statements
Third Quarter 2009 (unaudited)
4 November 2009
Page 10 of 16
Notes to the condensed financial statements
(unaudited)
1. Basis of preparation of financial statements
These financial statements are the interim condensed financial statements
(hereafter “the interim financial statements”) of Clariant Ltd, a company
registered in Switzerland, and its subsidiaries (hereafter “the Group”) for
the nine-month period ended on 30 September 2009. They are prepared
in accordance with the International Accounting Standard 34 (IAS 34
“Interim Financial Reporting”) and were approved on 30 October 2009 by
the Board of Directors. These interim financial statements should be read in
conjunction with the Consolidated Financial Statements for the year ended
31 December 2008 (hereafter “the annual financial statements”) as they
provide an update of previously reported information.
The accounting policies used are consistent with those used in the annual
financial statements. Where necessary, the comparatives have been
reclassified or extended from the previously reported interim results to
take into account any presentational changes made in the annual financial
statements or in these interim financial statements.
The preparation of the interim financial statements requires management
to make estimates and assumptions that affect the reported amounts
of revenues, expenses, assets, liabilities and disclosure of contingent
liabilities at the date of the interim financial statements. If, in the future,
such estimates and assumptions, which are based on management’s best
judgment at the date of the interim financial statements, deviate from
the actual circumstances, the original estimates and assumptions will be
modified as appropriate in the year in which the circumstances change.
2. Change in presentation of financial statements
In order to comply with IAS 1 (revised), the presentation of financial
statements is changed. Accordingly, all non-owner changes in equity are
presented in the Statement of other comprehensive income. Statement
of changes in equity, showing all owner changes, is now presented as a
part of financial statements. This was earlier included in the notes to the
financial statements.
IFRS 8, Operating segments, replaces IAS 14, Segment reporting. It requires
a "management approach", under which segment information is presented
on the same basis as that used for internal reporting purposes. In order to
comply with IFRS 8, the chief operating decision-maker has been identified as
the Executive Committee which makes strategic decisions. This committee
reviews the Group’s internal reporting in order to assess the performance
of the segments and allocate resources to segments. Management has
determined the following divisions as reportable segments based on these
reports:
• Textile, Leather & Paper Chemicals (TLP)
• Pigments & Additives (PA)
• Masterbatches (MB)
• Functional Chemicals (FUN)
The composition of the reportable segments did not change compared to the
previously reported segments under IAS 14 as those were already consistent
with the internal reporting provided to the executive committee.
"Corporate" includes mainly corporate functions in treasury, legal,
accounting, information technology and human resources and is not an
operating segment. The Executive Committee assesses the performance
of the operating segments based on income statement parameters like
third–party sales, EBITDA before exceptionals, EBITDA, operating income
before exceptionals and operating income (see definitions of these terms
of financial measurement on page 4). Intersegment sales, interest income
and expenditure and taxes are not included in the result for each operating
segment that is reviewed by the Executive Committee. The Group has
early adopted the amendment to IFRS 8 in regard of the segment assets.
The segment assets are not included in the measure of segment assets
reviewed by the Executive Committee and are not regularly provided to the
Executive Committee.
In respect of IAS 23 (revised), Borrowing Costs relating to qualifying
assets for which the commencement is on or after 1 January 2009, the
Group will capitalize borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset as part of the
cost of that asset. Previously, the Group recognized the borrowing costs as
an expense. This amendment of IAS 23 did not have any material impact
on the Group’s interim financial statements as the Group did not have any
material acquisition, construction or production of qualifying assets during
the reporting period.
3. Seasonality of operations
The Group operates in industries where significant seasonal or cyclical
variations in total sales are not experienced during the financial year.
4. Restructuring and impairment
During the reporting period, the Clariant Group recorded restructuring
expenses in the amount of CHF 132 million, which were mainly incurred
in the Textile Business in Switzerland, Spain, Japan and the United States;
the Pigment & Additives Division in Germany and Spain; the Masterbatches
Division in Germany, the United States, Italy, France and Spain; and the
Functional Chemicals Division in Germany and Spain. Impairment charges
amounted to CHF 35 million and occurred in Switzerland, the United
Kingdom and India.
5. Convertible bond issue
On 2 July 2009 Clariant placed a CHF 300 million senior unsecured convertible
bond maturing in 2014. The conversion price was set at CHF 8.55 per share,
which represents a 30% premium over the reference price. The coupon was
set at 3.00% per annum, payable semi-annually in arrears.
6. Disposal of activities not qualifying as discontinued
operation
In the third quarter of 2009, Clariant sold the subsidiary Clariant
Masterbatches (Korea) Ltd. It also sold the activities of Clariant Life
Science Molecules (Florida) Inc. in the United States and the industrial park
services in Griesheim in Germany. These disposals resulted in net gain of
CHF 2 million and net proceeds of CHF 33 million.
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 11 of 16

7. Divisional figures

Nine Months Sales to 3rd parties EBITDA before exceptionals EBITDA

CHF mn 2009 2008 % CHF % LC 2009 2008 % CHF % LC 2009 2008 % CHF % LC

Textile, Leather & Paper 1 217 1 591 – 24 – 18 60 141 – 57 – 49 47 108 – 56 – 43
Pigments & Additives 1 080 1 578 – 32 – 29 81 247 – 67 – 65 48 235 – 80 – 78
Masterbatches 842 1 020 – 17 – 13 81 114 – 29 – 22 53 103 – 49 – 44
Functional Chemicals 1 765 2 138 – 17 – 12 187 236 – 21 – 12 177 227 – 22 – 13
Divisions total 4 904 6 327 409 738 325 673

Corporate – – – 78 – 59 – 119 – 84

Total 4 904 6 327 – 22 – 18 331 679 – 51 – 46 206 589 – 65 – 60

Operating income before exceptionals Operating income Systematic depreciation of PPE

CHF mn 2009 2008 % CHF % LC 2009 2008 % CHF % LC 2009 2008
Textile, Leather & Paper 24 92 – 74 – 63 4 58 – 93 – 75 36 48
Pigments & Additives 32 189 – 83 – 82 – 3 167 – – 48 57
Masterbatches 56 89 – 37 – 31 25 76 – 67 – 63 24 24
Functional Chemicals 139 185 – 25 – 15 130 177 – 27 – 17 47 50
Divisions total 251 555 156 478 155 179

Corporate – 88 – 67 – 153 – 101 5 5

Total 163 488 – 67 – 61 3 377 – 99 – 94 160 184

Third Quarter Sales to 3rd parties EBITDA before exceptionals EBITDA

CHF mn 2009 2008 % CHF % LC 2009 2008 % CHF % LC 2009 2008 % CHF % LC

Textile, Leather & Paper 425 521 – 18 – 12 37 43 – 14 – 4 39 24 63 81
Pigments & Additives 384 510 – 25 – 21 55 91 – 40 – 38 51 89 – 43 – 40
Masterbatches 305 338 – 10 – 4 37 37 – 12 21 28 – 25 – 19
Functional Chemicals 577 725 – 20 – 15 68 84 – 19 – 13 70 83 – 16 – 9
Divisions total 1 691 2 094 197 255 181 224

Corporate – – – 34 – 13 – 49 – 26

Total 1 691 2 094 – 19 – 14 163 242 – 33 – 28 132 198 – 33 – 28

Operating income before exceptionals Operating income Systematic depreciation of PPE

CHF mn 2009 2008 % CHF % LC 2009 2008 % CHF % LC 2009 2008
Textile, Leather & Paper 25 26 – 4 9 27 7 – – 12 16
Pigments & Additives 39 71 – 45 – 45 34 66 – 48 – 47 16 20
Masterbatches 29 28 4 13 10 17 – 41 – 36 8 8
Functional Chemicals 51 67 – 24 – 16 54 66 – 18 – 11 16 17
Divisions total 144 192 125 156 52 61

Corporate – 37 – 14 – 54 – 37 1 1

Total 107 178 – 40 – 35 71 119 – 40 – 35 53 62
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 12 of 16

8. Divisional margins

Nine Months Sales to 3rd parties EBITDA before EBITDA

exceptionals
in % 2009 2008 2009 2008 2009 2008
Textile, Leather & Paper 24.8 25.2 4.9 8.9 3.9 6.8
Pigments & Additives 22.0 24.9 7.5 15.7 4.4 14.9
Masterbatches 17.2 16.1 9.6 11.2 6.3 10.1
Functional Chemicals 36.0 33.8 10.6 11.0 10.0 10.6
Total 100.0 100.0 6.7 10.7 4.2 9.3

Operating income Operating income

b. exceptionals
in % 2009 2008 2009 2008
Textile, Leather & Paper 2.0 5.8 0.3 3.6
Pigments & Additives 3.0 12.0 – 0.3 10.6
Masterbatches 6.7 8.7 3.0 7.5
Functional Chemicals 7.9 8.7 7.4 8.3
Total 3.3 7.7 0.1 6.0

Third Quarter Sales to 3rd parties EBITDA before EBITDA

exceptionals
in % 2009 2008 2009 2008 2009 2008
Textile, Leather & Paper 25.1 24.9 8.7 8.3 9.2 4.6
Pigments & Additives 22.7 24.4 14.3 17.8 13.3 17.5
Masterbatches 18.0 16.1 12.1 10.9 6.9 8.3
Functional Chemicals 34.2 34.6 11.8 11.6 12.1 11.4
Total 100.0 100.0 9.6 11.6 7.8 9.5

Operating income Operating income

b. exceptionals
in % 2009 2008 2009 2008
Textile, Leather & Paper 5.9 5.0 6.4 1.3
Pigments & Additives 10.2 13.9 8.9 12.9
Masterbatches 9.5 8.3 3.3 5.0
Functional Chemicals 8.8 9.2 9.4 9.1
Total 6.3 8.5 4.2 5.7
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 13 of 16

9. Regional developments

Sales Nine Months Third Quarter

CHF mn 2009 % of sales 2008 % of sales CHF % LC % 2009 % of sales 2008 % of sales CHF % LC %

Europe 2 175 44.3 3 090 48.8 – 30 – 24 726 42.9 977 46.7 – 26 – 20
of which Germany 652 967 – 33 – 28 224 308 – 27 – 23
of which Switzerland 75 112 – 33 – 28 23 34 – 32 – 25
Americas 1 446 29.5 1 715 27.1 – 16 – 10 504 29.8 604 28.8 – 17 – 9
of which USA 550 689 – 20 – 23 179 233 – 23 – 22
of which Brazil 388 453 – 14 – 144 166 – 13 – 2
Asia / Australia / Africa 1 283 26.2 1 522 24.1 – 16 – 14 461 27.3 513 24.5 – 10 – 8
of which China 259 299 – 13 – 17 102 93 10 11
Total 4 904 100.0 6 327 100.0 – 22 – 18 1 691 100.0 2 094 100.0 – 19 – 14
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 14 of 16

10. Operating income – EBITDA bridge

Nine Months TLP PA MB FUN Total Divisions Corporate Total

CHF mn 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Operating income 4 58 – 3 167 25 76 130 177 156 478 – 153 – 101 3 377
+ Depreciation of PPE 36 48 48 57 24 24 47 50 155 179 5 5 160 184
+ Impairment of PPE / goodwill 7 1 2 10 3 2 – 1 – 1 11 12 24 9 35 21
+ Amortization of other intangibles – 1 1 1 1 1 1 1 3 4 5 3 8 7
EBITDA 47 108 48 235 53 103 177 227 325 673 – 119 – 84 206 589
+ Restructuring and impairment 24 35 35 22 30 14 14 8 103 79 64 34 167 113
– Impairment of PPE / goodwill – 7 – 1 – 2 – 10 – 3 – 2 1 1 – 11 – 12 – 24 – 9 – 35 – 21
(reported under Restructuring
and impairment)
– Gain on disposals of – 4 – 1 – – 1 – 1 – 5 – – 8 – 2 1 – – 7 – 2
subsidiaries and associates
EBITDA before exceptionals 60 141 81 247 81 114 187 236 409 738 – 78 – 59 331 679

Operating income before exceptionals 24 92 32 189 56 89 139 185 251 555 – 88 – 67 163 488
– Restructuring and impairment – 24 – 35 – 35 – 22 – 30 – 14 – 14 – 8 – 103 – 79 – 64 – 34 – 167 – 113
+ Gain on disposals of 4 1 – – – 1 1 5 – 8 2 – 1 – 7 2
subsidiaries and associates
Operating income 4 58 – 3 167 25 76 130 177 156 478 – 153 – 101 3 377
Finance income 7 15
Finance costs – 90 – 113
Loss / Income before taxes – 80 279

Third Quarter TLP PA MB FUN Total Divisions Corporate Total

CHF mn 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Operating income 27 7 34 66 10 17 54 66 125 156 – 54 – 37 71 119
+ Depreciation of PPE 12 16 16 20 8 8 16 17 52 61 1 1 53 62
+ Impairment of PPE / goodwill – – 1 3 3 2 – 1 – 3 5 2 10 5 15
+ Amortization of other intangibles – 1 – – – 1 1 – 1 2 2 – 3 2
EBITDA 39 24 51 89 21 28 70 83 181 224 – 49 – 26 132 198
+ Restructuring and impairment – 2 20 5 5 18 11 1 – 22 36 16 24 38 60
– Impairment of PPE / goodwill – – – 1 – 3 – 3 – 2 1 – – 3 – 5 – 2 – 10 – 5 – 15
(reported under Restructuring
and impairment)
– Gain on disposals of – – 1 – – 1 – – 4 1 – 3 – 1 – 1 – 2 – 1
subsidiaries and associates
EBITDA before exceptionals 37 43 55 91 37 37 68 84 197 255 – 34 – 13 163 242

Operating income before exceptionals 25 26 39 71 29 28 51 67 144 192 – 37 – 14 107 178
– Restructuring and impairment 2 – 20 – 5 – 5 – 18 – 11 – 1 – – 22 – 36 – 16 – 24 – 38 – 60
+ Gain on disposals of – 1 – – – 1 – 4 – 1 3 – – 1 1 2 1
subsidiaries and associates
Operating income 27 7 34 66 10 17 54 66 125 156 – 54 – 37 71 119
Finance income 2 6
Finance costs – 30 – 18
Income before taxes 43 107
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 15 of 16

11. Condensed earnings per share data

Nine Months
CHF mn 2009 2008
Number of shares outstanding at 30.09.2009 and 30.09.2008 respectively 230 160 000 230 160 000
Weighted average, number of shares outstanding 226 003 933 226 600 473
Weighted average, diluted number of shares outstanding 227 185 622 227 782 162
Basic earnings per share attributable to the shareholders of Clariant Ltd (CHF / share): – 0.61 0.72
Diluted earnings per share attributable to the shareholders of Clariant Ltd (CHF / share)*: – 0.61 0.71
* There is no dilutive effect in the nine months of 2009 because the Group incurred a net loss in the nine months of 2009. Therefore, basic and dilutive earnings per share are equal.

12. Foreign exchange rates

Rates used to translate the consolidated statement of financial position 30.09.2009 31.12.2008 Change %
(closing rate)
1 USD 1.03 1.06 – 3
1 EUR 1.51 1.49 1
1 GBP 1.66 1.53 8
100 JPY 1.15 1.17 – 2

Nine Months
Average sales-weighted rates used to translate the consolidated income 2009 2008 Change %
statements and consolidated statements of cash flows
1 USD 1.11 1.06 5
1 EUR 1.51 1.61 – 6
1 GBP 1.70 2.06 – 17
100 JPY 1.17 1.00 17
Clariant International Ltd

Condensed Financial Statements

Third Quarter 2009 (unaudited)
4 November 2009
Page 16 of 16

Clariant – Exactly your chemistry.

Clariant is a global leader in the field of specialty chemicals. Strong
business relationships, commitment to outstanding service and wide-
ranging application know-how make Clariant a preferred partner for its
­customers.
Clariant, which is represented on five continents with over 100 Group
companies, employs about 18,000 people. Headquartered in Muttenz near
Basel, it generated sales of around CHF 8 billion in 2008.
Clariant is committed to sustainable growth arising from its own ­innovative
strength. Clariant’s innovative products play a key role in its customers’
manufacturing and treatment processes or add value to their end products.
The company’s success is based on the know-how of its people and their
ability to identify new customer needs at an early stage and to work
together with customers to develop innovative, e­ fficient solutions.
www.clariant.com

Clariant’s businesses are organized in four divisions: Textile, Leather &

Paper Chemicals, Pigments & Additives, Functional Chemicals, and
Masterbatches.

Calendar of Corporate Events Your Clariant Contacts

Investor Relations Fax +41 61 469 67 67
16 February 2010 Full Year 2009 Results Ulrich Steiner Tel. +41 61 469 67 45
29 March 2010 Annual General Meeting, Basel Jaideep Pandya Tel. +41 61 469 67 49
29 April 2010 First Quarter 2010 Results
29 July 2010 Half Year 2010 Results Media Relations Fax +41 61 469 69 99
3 November 2010 Nine Month 2010 Results Mark Hengel Tel. +41 61 469 66 53

Disclaimer
This document 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 pertain 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.