The business model illustrates how a company draws on various capitals as inputs and converts them into outputs, such as products and services, through its business activities. The company’s activities and outputs lead to outcomes that affect the capitals, thus impacting the company and its stakeholders.

Economic indicator representing the operational net inflow of cash and cash equivalents during a given period.

A substance that lowers the activation energy, thereby increasing the rate of a chemical reaction without being consumed by the reaction itself.

Clariant Excellence was an initiative launched in March 2009 with the aim of establishing a culture of continuous improvement. The four elements of Clariant Excellence were: Operational, Commercial, People, and Innovation Excellence. Clariant has adapted and refocused its organization post divestments, Clariant Excellence in its former composition does no longer exist. The Excellence approach is focused on Operational Excellence.

Clariant Excellence was an initiative launched in March 2009 with the aim of establishing a culture of continuous improvement. The four elements of Clariant Excellence were: Operational, Commercial, People, and Innovation Excellence. Clariant has adapted and refocused its organization post divestments, Clariant Excellence in its former composition does no longer exist. The Excellence approach is focused on Operational Excellence.

The Code of Ethics is laying down Clariant’s commitments and is intended to be a guide with ethical principles and examples to enable all personnel and associated parties to act with the highest standards of integrity.

Compliance is a key element of Corporate Governance. It refers to compliance with the law and directives as well as with company codes and ethical business practices and behaviors.

Core business activities that create additional value are structured into three value creation phases at Clariant. Customer to Cash encompasses planning to balance demand and supply, optimizing sourcing for spend effectiveness, constantly monitoring production for high efficiency, and delivering finished goods on-time and in-full as required by the customer.

Earnings before interest, taxes, depreciation, and amortization.

The EBITDA margin is calculated based on the ratio of EBITDA to sales and shows the return generated through operations from sales before depreciation and amortization.

Exceptional items are defined as non-recurring costs or income that have a significant impact on the result, for example expenses related to restructuring measures.

Management body of joint stock companies; at Clariant the Executive Committee currently comprises four members.

Cash flow from operations minus capex, divided by EBITDA.

The International Financial Reporting Standards (IFRS) are international accounting standards.

Reporting that extends traditional formats of corporate disclosure in order to communicate the full range of factors that significantly affect an organization’s ability to create value through its business model. An integrated report provides insight about the resources used and impacted by the company and their interdependence. It reflects and supports integrated thinking and decision-making that focuses on the creation of value over the short, medium, and long term.

These are plastic additives in the form of granules with dyestuffs or other additives used to dye or alter the properties of natural plastic.

Clariant continually evaluates and prioritizes economic, environmental, and social issues by assessing their materiality – the extent to which they impact our business and society. In 2021, Clariant conducted a comprehensive materiality assessment, which identified the issues that are most relevant to the company and its stakeholders. Both internal and external stakeholders were involved in the process which assessed the relevance of 28 topics spanning economic, governance, environmental and social dimensions. The material topics identified include employment opportunities, climate protection, product stewardship, as well as diversity, equity and inclusion. Clariant makes use of regular stakeholder interactions and market monitoring to make necessary adjustments to its materiality matrix.Clariant's materiality matrix shows the topics of most relevance to the company (vertical axis) and its stakeholders (horizontal axis).

Pigments are substances used for coloring; they are used in a technical manner, for example in the manufacture of dyes, varnishes, and plastics. In 2020, Clariant launched the divestment process of its Pigments business, which was completed on 3 January 2022.

Clariant 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.

The Science Based Targets Initiative is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). The SBTi is the lead partner of the Business Ambition for 1.5°C campaign - an urgent call to action from a global coalition of UN agencies, business and industry leaders, mobilizing companies to set net-zero science-based targets in line with a 1.5°C future. More information: https://sciencebasedtargets.org

Greenhouse gas emissions are categorized into three groups or 'Scopes' by the most widely-used international accounting tool, the Greenhouse Gas (GHG) Protocol. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company’s value chain. More information: www.carbontrust.com

A spin-off refers to the creation of an independent company through the divestment of a Business Unit from a company. Clariant was created through the spin-off and subsequent IPO of the Chemicals Division of Sandoz.

Stakeholders are people or groups whose interests are linked in various ways with those of a company. They include shareholders, business partners, employees, neighbors, and the community.

Clariant’s Strategic Management Process (SMP) is conducted by the business units in collaboration with Corporate Planning & Strategy. The SMP ensures that Group-level as well as businessunit-level strategy development is an iterative process that addresses the relevant megatrends observed by Clariant.

The Value Reporting Foundation is a global nonprofit organization that offers a comprehensive suite of resources designed to help businesses and investors develop a shared understanding of enterprise value. More information: www.valuereportingfoundation.org