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 2020, shareholdings in Group companies amount to CHF 1 822 537 204 compared to CHF 1 992 699 302 at the end of 2019. After this review, the following was recorded in the income statement: A reversal of devaluation of CHF 0 (2019: CHF 134 703 181) in “Reversal of devaluations on shareholdings and other income related to Group Companies” and a devaluation of CHF 282 569 184 (2019: CHF 154 081 709) in “Devaluations of shareholdings and other expenses related to Group Companies”.

In the year 2020 no hidden reserves were reversed (2019: CHF 75 million).

On 1 July 2020 Clariant Ltd sold its subsidiary Clariant Plastics & Coatings Ltd and that company’s subsidiaries to the US-based group Avient, as part of Clariant’s transactions to sell the Masterbatch business. Total consideration for the sale of the company amounted to CHF 736 million and resulted in a book gain of CHF 582 million. Additionally loans extended to Masterbatch companies in the amount of CHF 430 million were transferred to the buyer at nominal value.

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

For further details on shareholdings indirectly held by Clariant Ltd, see note 37, Important subsidiaries of this report.