23. Segment Information

Audited information

Clariant has grouped its activities into four (reportable segments): Care Chemicals (BU ICS), Catalysis (BU ), Natural Resources (BU Oil & Mining Services, BU Functional Minerals) and Plastics & Coatings (BU , BU , BU ).

Intersegment transactions are entered into under the normal circumstances and terms and conditions that would also be available to unrelated third parties.

Segment assets consist of property, plant and equipment, goodwill, intangible assets, inventories, receivables and investments in associates. They exclude deferred tax assets, financial assets and operating cash. Segment liabilities comprise trade payables. They exclude items such as tax liabilities, provisions, pension liabilities and corporate borrowings. Capital expenditure comprises additions to property, plant and equipment and intangibles.

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Segments

in CHF m

  

Care Chemicals

  

Catalysis

  

Natural Resources

  

Plastics & Coatings

  

Corporate

  

Total Group

 

  

2017

  

2016

  

2017

  

2016

  

2017

  

2016

  

2017

  

2016

  

2017

  

2016

  

2017

  

2016

1

EBITDA is earning before interest, tax, depreciation and amortization.

Segment sales

  

1 589

  

1 473

  

767

  

673

  

1 364

  

1 190

  

2 709

  

2 547

  

—

  

—

  

6 429

  

5 883

Sales to other segments

  

–14

  

–8

  

—

  

—

  

–7

  

–6

  

–31

  

–22

  

—

  

—

  

–52

  

–36

Total sales

  

1 575

  

1 465

  

767

  

673

  

1 357

  

1 184

  

2 678

  

2 525

  

—

  

—

  

6 377

  

5 847

Operating expenses

  

–1 375

  

–1 254

  

–639

  

–571

  

–1 223

  

–1 039

  

–2 381

  

–2 256

  

–263

  

–215

  

–5 881

  

–5 335

Thereof:

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Income from associates and joint ventures

  

10

  

9

  

11

  

13

  

5

  

12

  

30

  

34

  

47

  

17

  

103

  

85

Gain/loss from disposals not qualifying as discontinued operations

  

—

  

—

  

—

  

—

  

—

  

—

  

1

  

–2

  

2

  

–1

  

3

  

–3

Restructuring, impairment and transaction-related costs

  

–30

  

–10

  

–7

  

–11

  

–14

  

–14

  

–14

  

–18

  

–115

  

–54

  

–180

  

–107

Operating income

  

200

  

211

  

128

  

102

  

134

  

145

  

297

  

269

  

–263

  

–215

  

496

  

512

Net financial expenses and taxes

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

–194

  

–249

Net income

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

302

  

263

Segment assets

  

1 160

  

1 096

  

1 780

  

1 673

  

1 298

  

1 296

  

1 798

  

1 693

  

 

  

 

  

6 036

  

5 758

Segment liabilities

  

–244

  

–206

  

–90

  

–95

  

–150

  

–135

  

–273

  

–249

  

 

  

 

  

–757

  

–685

Net operating assets

  

916

  

890

  

1 690

  

1 578

  

1 148

  

1 161

  

1 525

  

1 444

  

—

  

—

  

5 279

  

5 073

Net assets held for sale

  

10

  

—

  

5

  

5

  

4

  

—

  

2

  

2

  

1

  

—

  

22

  

7

Corporate assets without cash

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

1 416

  

1 275

  

1 416

  

1 275

Corporate liabilities without financial liabilities

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

–2 239

  

–2 269

  

–2 239

  

–2 269

Net debt see

 

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

–1 539

  

–1 540

  

–1 539

  

–1 540

Total net assets

  

926

  

890

  

1 695

  

1 583

  

1 152

  

1 161

  

1 527

  

1 446

  

–2 361

  

–2 534

  

2 939

  

2 546

Thereof:

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Investments in PPE and intangibles for the period

  

61

  

79

  

36

  

87

  

49

  

40

  

86

  

82

  

47

  

48

  

279

  

336

Investments in associates and joint ventures at the end of the period

  

64

  

56

  

121

  

193

  

9

  

14

  

154

  

148

  

160

  

105

  

508

  

516

Reconciliation of key figures

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Operating income

  

200

  

211

  

128

  

102

  

134

  

145

  

297

  

269

  

–263

  

–215

  

496

  

512

Add: systematic depreciation of PPE

  

54

  

49

  

41

  

30

  

36

  

27

  

68

  

69

  

32

  

35

  

231

  

210

Add: impairment

  

—

  

—

  

1

  

5

  

1

  

—

  

12

  

3

  

2

  

—

  

16

  

8

Add: amortization of intangible assets

  

6

  

6

  

22

  

17

  

23

  

14

  

10

  

10

  

9

  

8

  

70

  

55

EBITDA1

  

260

  

266

  

192

  

154

  

194

  

186

  

387

  

351

  

–220

  

–172

  

813

  

785

Add: restructuring, impairment and transaction-related costs

  

30

  

10

  

7

  

11

  

14

  

14

  

14

  

18

  

115

  

54

  

180

  

107

Less: impairment

  

—

  

—

  

–1

  

–5

  

–1

  

—

  

–12

  

–3

  

–2

  

—

  

–16

  

–8

Less: gain/loss from disposals not qualifying as discontinued operations

  

—

  

—

  

—

  

—

  

—

  

—

  

–1

  

2

  

–2

  

1

  

–3

  

3

Adjusted EBITDA

  

290

  

276

  

198

  

160

  

207

  

200

  

388

  

368

  

–109

  

–117

  

974

  

887

Operating income

  

200

  

211

  

128

  

102

  

134

  

145

  

297

  

269

  

–263

  

–215

  

496

  

512

Add: restructuring, impairment and transaction-related costs

  

30

  

10

  

7

  

11

  

14

  

14

  

14

  

18

  

115

  

54

  

180

  

107

Less: gain/loss from disposals not qualifying as discontinued operations

  

—

  

—

  

—

  

—

  

—

  

—

  

–1

  

2

  

–2

  

1

  

–3

  

3

Adjusted operating income

  

230

  

221

  

135

  

113

  

148

  

159

  

310

  

289

  

-150

  

-160

  

673

  

622

(XLS:) Download

Reconciliation of segment assets to total assets

in CHF m

  

31.12.2017

  

31.12.2016

Segment assets

  

6 036

  

5 758

Segment assets reported as assets held for sale

  

21

  

7

Corporate assets reported as assets held for sale

  

1

  

—

Corporate assets without cash

  

1 416

  

1 275

Cash

  

701

  

1 043

Short-term deposits

  

47

  

277

Financial instruments with positive fair values

  

7

  

5

Total assets

  

8 229

  

8 365

(XLS:) Download

in CHF m

  

Sales1

  

Non-current assets2

 

  

2017

  

2016

  

31.12.2017

  

31.12.2016

1

Allocated by region of third-party sale’s destination.

2

Non-current assets exclude deferred tax assets and pension plan assets.

EMEA

  

2 674

  

2 423

  

2 438

  

2 368

of which Germany

  

757

  

672

  

1 458

  

1 470

of which Switzerland

  

34

  

36

  

585

  

512

of which MEA

  

480

  

419

  

62

  

74

North America

  

1 241

  

1 120

  

1 234

  

1 321

of which USA

  

1 143

  

1 030

  

1 213

  

1 299

Latin America

  

830

  

846

  

248

  

253

of which Brazil

  

355

  

327

  

146

  

156

Asia/Pacific

  

1 632

  

1 458

  

663

  

550

of which China

  

534

  

474

  

182

  

185

of which India

  

209

  

182

  

217

  

103

Total

  

6 377

  

5 847

  

4 583

  

4 492

All of the Group’s segments generate their revenues to the largest extent from the sale of products. These come in such a great variety that a meaningful grouping below the segment information is not possible.

For a description of the Business Units see .

Business Area

In 2013 Clariant adjusted its reporting segments and grouped its businesses with similar end-user markets and growth drivers into four distinct Business Areas: Care Chemicals, Catalysis, Natural Resources, and Plastics & Coatings. VIEW ENTIRE GLOSSARY

Catalyst

A substance that lowers the activation energy, thereby increasing the rate of a chemical reaction without being consumed by the reaction itself (Clariant Business Unit Catalysts). VIEW ENTIRE GLOSSARY

Additive

A substance added to products in small quantities to achieve certain properties or to improve a product (Clariant Business Unit Additives). VIEW ENTIRE GLOSSARY

Masterbatches

These are plastic additives in the form of granules with dyestuffs or other additives used to dye or alter the properties of natural plastic. VIEW ENTIRE GLOSSARY

Pigment

Pigments are substances used for coloring; they are used in a technical manner, for example in the manufacture of dyes, varnishes, and plastics. VIEW ENTIRE GLOSSARY

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