Clariant confirms extraordinary distribution but proposes to withhold regular dividend

• The Board of Directors carefully reviewed Annual General Meeting agenda items in light of the COVID-19 pandemic
• Unchanged proposal for an extraordinary distribution of CHF 3.00 per share, subject to the closing of the Masterbatches transaction
• Proposes shareholders to withhold regular dividend and carry forward available earnings

Muttenz, May 14, 2020 – Clariant, a focused, sustainable and innovative specialty chemical company, today announced that, due to the uncertain economic environment in light of the COVID-19 pandemic, its Board of Directors has confirmed the extraordinary distribution while proposing to withhold the distribution of the regular dividend. This is the result of a careful review by the Board of Directors of all agenda items for the 25^th Annual General Meeting (AGM) of Clariant, to be held on June 29, 2020.

The Board of Directors has confirmed the proposal for an extraordinary cash distribution of CHF 3.00 per share, subject to the successful closing of the divestment of Clariant’s Masterbatches business. If approved by Clariant’s shareholders, the extraordinary distribution of approx. CHF 1 billion will be paid out following the closing of the divestment of the Masterbatches business, which is currently expected to take place in Q2/Q3 2020.

In order to protect the long-term interest of the company and its shareholders, the Board of Directors proposes to withhold the distribution of the regular dividend. Instead of the originally planned distribution of CHF 0.55 per share by way of a par value reduction, the available earnings will be carried forward. If the economic environment and the financial condition of the company allow, an extraordinary distribution may be proposed at the Annual General Meeting 2021 with a view to compensate the lack of an ordinary distribution this year.

“At a time when our society is confronted with an uncertain and unprecedented economic environment, the Board of Directors believes in taking a balanced approach towards distributions to shareholders. In this way, the Board intends to secure additional liquidity for the company while still fulfilling its commitment to shareholders. Clariant’s commitment to long-term value creation remains upright and its strategic transformation program is in full progress. Therefore, the Board aims to resume Clariant’s attractive regular dividend policy when the situation allows for it” said Hariolf Kottmann, Executive Chairman ad interim of Clariant.

Clariant is a focused, sustainable and innovative specialty chemical company based in Muttenz, near Basel/Switzerland. On 31 December 2019, the company employed a total workforce of 17 223. In the financial year 2019, Clariant recorded sales of CHF 4.399 billion for its continuing businesses. The company reports in three business areas: Care Chemicals, Catalysis and Natural Resources. Clariant’s corporate strategy is based on five pillars: focus on innovation and R&D, add value with sustainability, reposition portfolio, intensify growth, and increase
profitability.

Attachments

• Clariant Media Release Distribution Proposal AGM 20200514 EN
• Clariant Media Release Distribution Proposal AGM 20200514 DE