24. Segment Information

Audited information

In 2019 Clariant set out to rearange its portfolio of business activities. In October 2019 Clariant sold its Business Line Healthcare Packaging, operated as as part of the Business Unit to US-based Arsenal Capital Partners. In December 2019 a contract was signed with the US-based PolyOne Corporation to sell the Business Unit Masterbatches. The project to sell the Business Unit is under way. For these reasons all these Business Units are reported as discontinued operations in the financial report (see also Discontinued Operations).

As a result Clariant has grouped its remaining activities into three (reportable segments): Care Chemicals (BU ICS), Catalysis (BU ), Natural Resources (BU Oil & Mining Services, BU Functional Minerals, BU ). Prior year information has been restated accordingly.

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.

Segments

in CHF m

 

Care Chemicals

 

Catalysis

 

Natural Resources

 

Corporate

 

Total Group

 

 

2019

 

2018

 

2019

 

2018

 

2019

 

20184

 

2019

 

2018

 

2019

 

2018

1

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

2

Not including the result of the partial disposal and revaluation of the participation in Stahl in 2018.

3

Includes the effect of the partial disposal and revaluation of the participation in Stahl in 2018 in the amount of CHF 59 million with the allocation to Business Areas as follows: CHF 15 million to Care Chemicals, CHF 8 million to Catalysis, CHF 13 million to Natural Resources and CHF 23 million to Plastics & Coatings.

4

Restated for the allocation of the Business Unit Additives to the Business Area Natural Ressources.

Segment sales

 

1 615

 

1 681

 

925

 

862

 

1 894

 

1 902

 

 

 

4 434

 

4 445

Sales to other segments

 

–15

 

–16

 

 

–1

 

–20

 

–24

 

 

 

–35

 

–41

Total sales (continuing operations)

 

1 600

 

1 665

 

925

 

861

 

1 874

 

1 878

 

 

 

4 399

 

4 404

Operating expenses

 

–1 389

 

–1 414

 

–785

 

–750

 

–1 666

 

–1 684

 

–394

 

–208

 

–4 234

 

–4 056

Thereof:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from associates and joint ventures3

 

16

 

29

 

11

 

17

 

7

 

25

 

–1

 

13

 

33

 

84

Gain/loss from disposals not qualifying as discontinued operations

 

 

 

–1

 

 

 

 

3

 

–54

 

2

 

–54

Restructuring, impairment and transaction-related costs

 

–3

 

–2

 

–5

 

–14

 

–3

 

–22

 

–39

 

–40

 

–50

 

–78

Provision for EU investigation

 

 

 

 

 

 

 

 

 

 

 

 

 

–231

 

 

–231

 

Operating income

 

211

 

251

 

140

 

111

 

208

 

194

 

–394

 

–208

 

165

 

348

Net financial expenses and taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

–199

 

–135

Net result from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

–34

 

213

Result from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

72

 

143

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38

 

356

Segment assets

 

1 160

 

1 158

 

1 722

 

1 724

 

1 571

 

1 522

 

 

 

 

4 453

 

4 404

Segment liabilities

 

–218

 

–252

 

–152

 

–159

 

–194

 

–200

 

 

 

 

–564

 

–611

Net operating assets

 

942

 

906

 

1 570

 

1 565

 

1 377

 

1 322

 

 

 

3 889

 

3 793

Segment assets reported as assets held for sale

 

 

7

 

5

 

5

 

 

 

 

 

 

5

 

12

Corporate assets reported as assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

1

 

2

 

1

Segment assets of discontinued operations reported as assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 298

 

1 454

Assets held for sale

 

 

7

 

5

 

5

 

 

 

2

 

1

 

1 305

 

1 467

Segment liabilities of discontinued operations reported as liabilities associated with assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

–559

 

–241

Liabilities directly associated with assets held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

–559

 

–241

Corporate assets without cash

 

 

 

 

 

 

 

 

 

 

 

 

 

1 275

 

1 244

 

1 275

 

1 244

Corporate liabilities without financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

–1 890

 

–1 919

 

–1 890

 

–1 919

Net debt (see )

 

 

 

 

 

 

 

 

 

 

 

 

 

–1 343

 

–1 374

 

–1 343

 

–1 374

Total net assets

 

942

 

913

 

1 575

 

1 570

 

1 377

 

1 322

 

–1 956

 

–2 048

 

2 677

 

2 970

Thereof:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in PPE and intangibles for the period

 

68

 

61

 

81

 

56

 

78

 

70

 

13

 

23

 

240

 

210

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

 

91

 

87

 

108

 

118

 

46

 

37

 

3

 

3

 

248

 

245

Reconciliation of key figures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

211

 

251

 

140

 

111

 

208

 

194

 

–394

 

–208

 

165

 

348

Add: systematic depreciation of PPE

 

54

 

56

 

52

 

55

 

50

 

53

 

19

 

27

 

175

 

191

Add: impairment

 

 

 

 

 

 

 

 

 

 

Add: depreciation of RoU assets

 

10

 

 

5

 

 

21

 

 

18

 

 

54

 

Add: amortization of intangible assets

 

7

 

7

 

15

 

19

 

26

 

24

 

19

 

18

 

67

 

68

EBITDA1

 

282

 

314

 

212

 

185

 

305

 

271

 

–338

 

–163

 

461

 

607

Add: restructuring, impairment and transaction-related costs

 

3

 

2

 

5

 

14

 

3

 

22

 

39

 

40

 

50

 

78

Add: Provision for EU investigation

 

 

 

 

 

 

 

 

 

 

 

 

 

231

 

 

231

 

Less: gain/loss from disposals not qualifying as discontinued operations2

 

 

 

1

 

 

 

 

–3

 

54

 

–2

 

54

Adjusted EBITDA

 

285

 

316

 

218

 

199

 

308

 

293

 

–71

 

–69

 

740

 

739

Operating income

 

211

 

251

 

140

 

111

 

208

 

194

 

–394

 

–208

 

165

 

348

Add: restructuring, impairment and transaction-related costs

 

3

 

2

 

5

 

14

 

3

 

22

 

39

 

40

 

50

 

78

Add: Provision for EU investigation

 

 

 

 

 

 

 

 

 

 

 

 

 

231

 

 

231

 

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

 

 

 

1

 

 

 

 

–3

 

54

 

–2

 

54

Adjusted operating income

 

214

 

253

 

146

 

125

 

211

 

216

 

–127

 

–114

 

444

 

480

Reconciliation of segment assets to total assets

 

 

31.12.2019

 

31.12.2018

Segment assets

 

4 453

 

4 404

Segment assets reported as assets held for sale

 

5

 

12

Corporate assets reported as assets held for sale

 

2

 

1

Segment assets of discontinued operations reported as assets held for sale

 

1 298

 

1 454

Corporate assets without cash

 

1 275

 

1 244

Cash and cash equivalents

 

638

 

833

Short-term deposits

 

304

 

26

Financial instruments with positive fair values

 

4

 

7

Total Assets

 

7 979

 

7 981

in CHF m

 

Sales1

 

Non-current assets2

 

 

2019

 

20183

 

31.12.2019

 

31.12.2018

1

Allocated by region of third-party sales destination. Continuing operations.

2

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

3

Restated – see .

EMEA

 

1 826

 

1 874

 

1 962

 

2 275

of which Germany

 

507

 

532

 

1 264

 

1 391

of which Switzerland

 

23

 

27

 

431

 

490

of which MEA

 

338

 

337

 

25

 

55

North America

 

862

 

890

 

1 031

 

1 205

of which USA

 

802

 

838

 

1 015

 

1 187

Latin America

 

556

 

560

 

178

 

226

of which Brazil

 

234

 

239

 

106

 

124

Asia / Pacific

 

1 155

 

1 080

 

513

 

636

of which China

 

399

 

410

 

151

 

177

of which India

 

134

 

109

 

149

 

200

Total

 

4 399

 

4 404

 

3 684

 

4 342

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.

Revenue from services recognized in 2019 amounted to CHF 100 million (2018: CHF 89 million) and mostly were incurred in Business Area Natural Resources.

For a description of the Business Units see .

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

Pigments

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

Business Area

For the financial reporting, Clariant grouped its businesses in three core Business Areas: Care Chemicals, Catalysis, and Natural Resources. 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. View entire glossary

Additive

A substance added to products in small quantities to achieve certain properties or to improve a product. View entire glossary

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