Clariant delays the release of fourth quarter / full year 2021 results

AD HOC ANNOUNCEMENT PURSUANT TO ART. 53LR

• Postponement triggered by an investigation into accounting issues related to the recognition of provisions and adjustments during the 2020 and 2021 financial years

• The investigation by independent advisers is well advanced

• Preliminary revenue from continuing operations increased by 15% in local currency to CHF 4.372 billion in 2021

• Based on current knowledge, Clariant expects to achieve EBITDA margin targets
  from 16% to 17% for continuing operations in 2021

• No impact on cash and cash equivalents identified

• Conrad Keijzer, CEO of Clariant: “We are investigating this matter with the utmost urgency and diligence.”

MUTTENZ, FEBRUARY 1ST42022

Clariant, a focused, sustainable and innovative specialty chemicals company, today announced that the release of its fourth quarter/full year 2021 results will be delayed due to an investigation into accounting issues related to certain provisions and fees to pay. As a result, the publication of the 2021 integrated report and the annual general meeting of shareholders (AGM) will be postponed beyond the scheduled dates.

The investigation was prompted by information from internal whistleblowers, which the Company took very seriously. “At Clariant, we encourage our staff to speak up and therefore appreciate that our employees have brought this issue to our attention. We are investigating this matter with the utmost urgency and diligence,” said Conrad Keijzer, Chief Executive Officer of Clariant.

The investigation concerns the recognition of certain provisions and accrued charges. It examines whether employees have incorrectly recorded these provisions and accruals, with the aim of steering the results of the Company to achieve internal and external objectives.

The Company has appointed independent advisors and outside counsel Deloitte and Gibson, Dunn & Crutcher, to investigate these accounting matters. The periods under review relate to the Company’s previously published annual and semi-annual financial statements and quarterly reporting for the years 2020 and 2021.

The story continues

As a result of this ongoing investigation and based on current knowledge, Clariant may need to restate previously released financial statements, including the annual financial statements for the year ended December 31, 2020 and the first half financial statements. for the periods ended June 30, 2020 and June 30, 2021 as well as the quarterly reporting for these years. At this stage, it is not yet clear whether this problem also extends to accounting periods before 2020.

Although the Company’s investigation is well advanced, the postponement of the release of the fourth quarter/full year 2021 results and the 2021 Integrated Report has become necessary to ensure a thorough and complete examination of the matters and the completion satisfaction of the investigation with all necessary guarantees.

Based on information available to management to date, Clariant expects the financial results for 2021 to be: Preliminary sales from continuing operations of CHF 4.372 billion, corresponding to a 15% increase in local currency and 13% in Swiss francs. Clariant expects to achieve the EBITDA margin range of 16% to 17% for continuing operations, as expected on October 28, 2021. The results of the investigation are not expected to have an impact on cash and cash equivalents declared during the years under review.

Clariant is devoting all necessary resources to complete the investigation and will report its fourth quarter/full year 2021 results, publish the 2021 Integrated Report and set a new date for the Annual General Meeting of Shareholders in due course.

“We will also address the root causes of this issue by addressing our controls and processes and further reinforcing a culture of the highest ethical standards, as part of our goal-driven strategy,” Conrad said. Keijzer, CEO of Clariant.

Attachment