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General
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Last Update: 03/11/2010
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Part of the audited Consolidated Financial Statements and Management´s Analysis

Business development

Innovative, high-growth specialties

Reorganization of the segment

  • Effective April 1, 2009, the segment consists of the divisions Dispersions & Pigments, Care Chemicals, Paper Chemicals and Performance Chemicals
  • Acrylics & Dispersions division was completely reorganized and renamed Dispersions & Pigments
  • New Paper Chemicals division bundles the business with paper chemicals, binders and kaolin minerals.

Sales by division

Performance Products – Sales by division (pie chart)

The Performance Products segment consists of the Dispersions & Pigments, Care Chemicals, Paper Chemicals and Performance Chemicals divisions. Our customers use our products and services to make their processes more efficient and give their products special characteristics such as heat resistance, UV stability or color.

Sales to third parties increased by €1,231 million to €9,356 million (volumes –10%, prices –4%, portfolio 28%, currencies 1%). Against a backdrop of a generally sharp decline in demand, sales growth was due solely to the integration of the Ciba businesses from April 2009 onward. Income from operations was minus €150 million due to the impact of the crisis in nearly all our customer industries and high charges incurred as a result of the Ciba integration.

We expect demand to recover and result in an increase in sales in 2010. Earnings should improve considerably thanks to higher synergy effects from the acquisition and considerably lower integration costs. We aim to significantly outperform the cumulative results that the now combined businesses achieved in 2008.

Sales Performance Products
(million €)

Performance Products – Sales (bar chart)

Income from operations Performance Products
(million €)

Performance Products – Income from operations (bar chart)

Factors influencing sales Performance Products

Performance Products – Factors influencing sales (bar chart)
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Segment data Performance Products (million €)

 

 

2009

2008

Change in %

Sales to third parties

9,356

8,125

15.2

Thereof Dispersions & Pigments

2,445

2,239

9.2

Care Chemicals

3,405

3,593

(5.2)

Paper Chemicals

1,326

1,030

28.7

Performance Chemicals

2,180

1,263

72.6

Intersegmental transfers

319

345

(7.5)

Sales including intersegmental transfers

9,675

8,470

14.2

Income from operations before depreciation and amortization (EBITDA)

926

1,205

(23.2)

EBITDA as a percentage of sales

9.9

14.8

Income from operations (EBIT) before special items

698

766

(8.9)

Income from operations (EBIT)

(150)

768

.

Income from operations (EBIT) after cost of capital

(930)

182

.

Assets

9,242

5,769

60.2

Research and development expenses

285

223

27.8

Additions to property, plant and equipment and intangible assets

3,753

360

.

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