Clariant on the Capital Markets
Strong stock market performance
Stock market performance in 2021 exhibited an upward trend until September. With the increasing availability of COVID-19 vaccines, the stock markets continued to recover for the first months, and only entered a sideways movement at the end of the year with the rebound of COVID-19 infection rates. In addition, the raw material price inflation and supply disruptions have led to a higher and broader-based general inflation in the 2021 financial year than expected, particularly affecting the United States and many emerging and developing economies. The continued contraction of the Chinese real estate sector and the slower-than-expected recovery of private consumption have also limited the outlook for growth.
The SMIM (SMI Mid) closed the 2021 financial year with 3 438.41 points on 31 December 2021, which corresponds to an increase of 20.2 % compared to the end of the previous year. Closing at 1 366,92 points, the STOXX® Europe 600 Chemicals (SX4P) recorded an increase of 22.7 % across the same period.
Clariant share price increased by 1 % in the course of the year
The Clariant share price ended the year 2021 at CHF 19.00. This corresponds to an increase of 1.0 % compared to the closing price of the previous year (CHF 18.82). Including the distribution to shareholders of CHF 0.70, the total shareholder return (TSR) amounted to 4.7 % in 2021. With an opening price of CHF 18.82 on 2 January 2021, the share moved sideways in the first quarter. In mid-March, the share price dropped to CHF 18.71 on 19 March 2021. Afterwards, the share slowly recovered and reached its annual high on 16 April 2021 at CHF 20.50 (closing price). Continuing this directionless progression, the Clariant share price fell to CHF 18.85 on 4 May 2021, and entered into a sideways movement until the beginning of September. On 20 September 2021, the share price fell to CHF 17.70. It then slightly increased again before it recorded a drop to its annual low at CHF 17.07 (closing price) on 6 October 2021. Subsequently, the share price gradually rose until reaching the mark of CHF 17.96 on 15 October 2021. It entered into a sideways movement until 27 October 2021, closing at CHF 18.08. Following the release of the third quarter 2021 results on 28 October 2021, stating that Clariant had significantly increased its sales and profitability in the quarter, the share price rose to CHF 18.98 and reached a level of CHF 19.26 on 29 October 2021. Until the end of November, the share price remained largely unchanged. Due to the weak equity markets, the Clariant share was initially unable to benefit from the announcement of its new 2025 targets on 23 November 2021, but almost completely compensated for the weakness in December with a year-end closing price of CHF 19.00.
001CLARIANT SHARE PRICE PERFORMANCE 1 JANUARY – 31 DECEMBER 2021 IN CHF
Dividend
Dividend policy
While the divestments of approximately one-third of the company’s sales have led to a recalibration in the absolute amount of the dividends, Clariant’s dividend policy remains unchanged. Clariant is committed to increasing the absolute dividend in Swiss francs on the back of profitable growth, while maintaining an attractive payout ratio.
Dividend proposal for 2021
The Board of Directors recommends a regular distribution of CHF 0.40 per share to the Annual General Meeting 2022 based on the Group’s improved underlying performance in 2021. This proposal takes into consideration the Group’s strong performance in 2021, as well as all shareholder commitments. The distribution is proposed to be made through share capital reduction by way of a par value reduction.
Shareholder structure (Shareholders/Distribution of free float)
In the 2021 financial year, Clariant maintained its well-diversified and stable shareholder structure.
SABIC acquired 24.99 % of the shares of Clariant Ltd on 17 September 2018 and increased its participation by 6.51 % to 31.5 % on 9 September 2020. The difference between this figure (i.e., 31.5 %) and the 32.35 % mentioned below corresponds to the amount of treasury shares held by Clariant Ltd as of 31 December 2021, which have to be aggregated to the shares held by SABIC solely for regulatory disclosure purposes due to the Governance Agreement entered into by SABIC and Clariant on 17 September 2018.
As of 31 December 2021, the following shareholders held 3 % or more of voting rights in Clariant Ltd: SABIC International Holdings B.V., 32.35 %; BlackRock Inc., 3.8 %; Blue Beteiligungsgesellschaft mbH and Maple Beteiligungsgesellschaft mbH, 3.49 % and PSquared Asset Management AG, 3.04 %.
Subject to certain limitations on voting by nominees, each registered share entitles the holder to one vote at the shareholders’ meetings. Shareholders have the right to receive dividends and such other rights as are granted by the Swiss Code of Obligations. However, only shareholders entered in the Clariant share register may exercise their voting rights. Shareholders representing shares with a total par value of CHF 1 million have the right to submit written requests that an item be included on the agenda at least 45 days prior to the 27th Annual General Meeting on 24 June 2022.
002GEOGRAPHIC DISTRIBUTION OF SHAREHOLDINGS IN %
Analyst coverage
In the 2021 financial year, Clariant was actively covered by 17 sell-side analysts tracking the financial performance of Clariant Ltd on behalf of their respective companies. As of 31 December 2021, two additional sell-side analysts were restricted from publishing a rating for Clariant by their institutions. Their analyses served as the basis for the performance estimates and recommendations published in the 2021 financial year.
At the end of 2021, ten analysts had a neutral recommendation on Clariant, while six analysts recommended buying the share and one analyst recommended selling. The average target price of the 17 actively covering analysts was CHF 21.11, representing an upside of 11.1 % from the 2021 closing price of CHF 19.00. The target price range was between CHF 18.00 and CHF 25.00 as of 31 December 2021.
In order to facilitate an independent and transparent assessment of performance, Clariant provides analysts and investors with market consensus figures. This consensus is based solely on analyst estimates and in no way reflects the opinion of Clariant.
An up-to-date analyst consensus is available online on the Clariant website. This information reflects analyst forecasts as of 26 January 2022 and may change on a continuing basis.
Ratings
An overview of the most recent ratings of the Clariant share and bonds can be found on the Clariant website.
Dialogue with the capital market
Clariant’s corporate strategy is aimed at long-term value enhancement. That is why continuous and open communication with all capital market participants is important. In light of the COVID-19 pandemic, Clariant primarily used virtual formats, such as video or telephone conferences for the dialogue in 2021. Clariant connects with institutional investors and rating agencies in various one-on-one meetings as well as at roadshows and conferences worldwide. For private investors, the company provides insight at the Annual General Meeting.
Clariant’s largest event for investors, analysts, and bank representatives was the Capital Markets Day, which was held virtually on 23 November 2021. At the event, the company announced new 2025 financial targets in conjunction with its new purpose-led strategyPurpose-led strategyClariant aims to move toward top-quartile results in specialty chemicals in terms of growth, profitability, sustainability, and people. Based on its new purpose, »Greater chemistry – between people and planet« Clariant unveiled a new purpose-led strategy with four dimensions, accompanied by new financial and non-financial targets. The strategy reflects Clariant’s ambition to create value with innovative chemistry and a sustainability focus, putting customers, employees, and the planet at the center of all activities. »Greater chemistry – between people and planet.« Building on its high-growth, high-margin specialty portfolio, Clariant has adopted several strategic initiatives for value creation and profitable growth. This has included accelerating sustainability-driven innovation, expanding the global footprint with a focus on China, and ensuring the disciplined execution of potential bolt-on acquisitions. Further information on the 2021 Capital Markets Day is available online.
Clariant – A sustainable investment
The Clariant share is attractive for investors focusing on companies with a strong ESG performance. Leading ESG rating agencies consider Clariant best in class within the chemical industry. Their ratings particularly recognize the company’s innovation power for sustainable products, Clariant’s business ethics, and the comprehensive measures to address relevant sustainability issues.
Clariant actively participates in a large number of ESG ratings, and is listed in several sustainability indices. Read more about Ratings and Rankings.