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), Clariant Finance (Luxembourg) S.A and Clariant Corporation (USA).

At the end of 2019, shareholdings in Group companies amount to CHF 1 992 699 302 compared to CHF 1 918 488 220 at the end of 2018. After this review, the following was recorded in the income statement: A reversal of devaluation of CHF 134 703 181 (2018: CHF 170 399 000) in »Reversal of devaluations on shareholdings and other income related to Group Companies« and a devaluation of CHF 154 081 709 (2018: CHF 224 935 908) in »Devaluations of shareholdings and other expenses related to Group Companies«.

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

In the year 2019, CHF 75 million of hidden reserves were reversed (2018: CHF 82 million).

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

For further details on shareholdings indirectly held by Clariant Ltd, see note 36, Important subsidiaries of this report.