Shareholdings in Group companies are reviewed on a yearly basis to assess their cash generating capabilities by applying either a mixed calculation method based on the equity value and the net result or, alternatively, the discounted cash flow model. In that review, the investments are classified and grouped in terms of sales and Business Areas.

The following shareholdings in Group companies were valued using the discounted cash flow method: Clariant S.A. (Brazil) and Clariant Finance (Luxembourg) S.A.

At the end of 2018, shareholdings in Group companies amount to CHF 1 918 488 220 compared to CHF 1 813 746 020 at the end of 2017. After this review, the following was recorded in the income statement: A reversal of devaluation of CHF 170 399 000 (2017: CHF 108 600 000) in »Reversal of devaluations on shareholdings and other income related to Group Companies« and a devaluation of CHF 224 935 908 (2017: CHF 101 600 000) in »Devaluations of shareholdings and other expenses related to Group Companies«.

On 14 December 2018 Clariant Ltd received as a distribution in kind from capital contribution reserves from its’ subsidiary Clariant Plastics & Coatings Ltd the 100% participation in Clariant Plastics & Coatings USA Inc. in the amount of CHF 156 883 039. The shareholdings were subsequently invested in Clariant Corporation as a capital contribution in kind.

In the year 2018, CHF 82 million of hidden reserves were reversed (2017: CHF 58 million).

The table below shows the shareholdings directly held by Clariant Ltd.

For further details on shareholdings indirectly held by Clariant Ltd, see note 35, Important subsidiaries of this report.