• Sales decline in local currency due to lower demand in North America and Asia
• EBITDA margin before exceptional items declines due to portfolio mix and project delays at customer level

In this transition year 2016, sales in the Business Area Catalysis declined by 8% in local currency and by 4% in Swiss francs in 2016. The decline in sales was due to the continued soft demand in Asia as a result of project delays and a lower demand in North America which had a high comparable base against the previous year. The lower demand could not be offset by a good sales development in other regions.

The EBITDA margin before exceptional items of Catalysis decreased to 23.8% in the full year of 2016 which is slightly below our margin guidance. The decline was due to a slow-down in demand and a lower contribution of Specialty Catalysts.

Even though for 2016 we saw a demand contraction in Catalysis as a result of the weak economic environment, fundamentals in the mid- to long-term remain positive based on Clariant’s portfolio strength, innovation capability, global footprint, and growing partnerships. Partnerships include the CB&I’s Lummus Novolen Technology for polypropylene catalysts. The inauguration of a new plant took place in the fourth quarter of 2016 and first revenues are expected in the first quarter of 2017.