AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

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-- Q4 2023: Sales decreased by 10 % organically in local currency1 to
CHF 1.062 billion against a strong comparable in Q4 2022; sequential
sales increase of 4 % in local currency driven by volume growth

-- Q4 2023: EBITDA margin of 10.0 % impacted by provisions related to
sunliquid(R) decision and restructuring; underlying EBITDA margin before
exceptional items of 14.9 %

-- FY 2023: Sales decreased by 7 % organically in local currency to
CHF 4.377 billion due to lower volumes despite maintaining stable
pricing; EBITDA margin of 13.9 %, and 14.6 % before exceptional items

-- FY 2023: Resilient free cash flow of CHF 216 million, resulting in a 36 %
free cash flow conversion rate

-- FY 2023: Distribution of CHF 0.42 per share proposed to AGM on 9 April
2024

-- Outlook 2024: In a continued challenging macroeconomic environment,
Clariant targets low single-digit local currency growth and an
improvement in reported EBITDA margin to around 15 % (around 16 %
excluding sunliquid(R) operational and exceptional impacts)

-- Medium-term targets: Clariant remains firmly committed to its targets,
with 2025 EBITDA margin now expected at 17 % -- 18 % showing significant
progress toward the 19 % -- 21 % target



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"In the fourth quarter of 2023, we saw sequential revenue improvement while end markets stabilized. Robust performance in the quarter was nevertheless below the strong base of the prior year, when Catalysts delivered record sales. With the imminent completion of the acquisition of Lucas Meyer Cosmetics and our decision to cease operations at the sunliquid(R) plant, we have positioned the company for higher growth and improved profitability, taking another step forward in our purpose-led growth strategy," said Conrad Keijzer, Chief Executive Officer of Clariant. "For the full year 2023, I am particularly proud of our ability to defend pricing and to deliver on our performance program commitments, reaching CHF 135 million total savings out of our target of CHF 170 million. Our strong cash generation and stable cash conversion have enabled our Board of Directors to propose an unchanged distribution of CHF 0.42 per share to shareholders."

For 2024, we expect sales growth in local currencies and an increase in profitability, despite a continued challenging macroeconomic environment. Growth in Care Chemicals and Adsorbents & Additives is expected to offset a temporary slowdown in Catalysts momentum. We will benefit from both strategic growth investments and our cost-saving measures to improve our performance. With our specialty portfolio, market-driven innovation, focus on sustainability, and highly committed people, we are well positioned to drive growth. We will adopt an agile response as our end markets recover and growth normalizes over the next two to three years since we remain committed to and resolute in our plans to achieve our medium-term targets in that period. However, taking into account the continued challenging macroeconomic environment, we now expect 2025 to be a year of significant progress towards these targets with continued growth and substantial profitability improvement," Conrad Keijzer added.

1) All references to local currency growth, pricing, volumes, and scope exclude the impact from hyperinflation countries Argentina and Türkiye. All references to currency include a net impact from hyperinflation countries Argentina and Türkiye.

Business Summary

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Fourth Quarter                  Full Year 
--------------------------  ------------------------------  ------------------------------ 
in CHF million              2023    2022   % CHF  % LC((1)  2023    2022   % CHF  % LC((1) 
Sales                        1 062  1 323   - 20      - 14   4 377  5 198   - 16      - 10 

EBITDA 106 154 - 31 607 810 - 25

10.0   11.6                     13.9   15.6 
- margin                         %      %                        %      % 

EBITDA before exceptional

items                         158    203   - 22               641    893   - 28 
- margin                    14.9    15.3                    14.6    17.2 
%       %                       %       % 
--------------------------  ------  -----                   ------  ----- 
Sales bridge:               Price -4 %; Volume -6 %;        Price 0 %; Volume -7 %; 
Currency -6 %; Scope -4         Currency -6 %; Scope -3 
%                               % 
--------------------------  ------------------------------  ------------------------------ 

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(1) Excluding hyperinflation accounting countries Argentina and Türkiye

Outlook -- Full Year 2024 and Medium-Term Targets

For the full year 2024, Clariant expects to see a continued easing of the inflationary environment but no significant economic recovery, with macroeconomic uncertainties and risks remaining. Clariant therefore expects low single-digit sales growth in local currency. Growth in Care Chemicals, including the impact of the proposed acquisition of Lucas Meyer Cosmetics, and in Adsorbents & Additives is expected to offset a temporary slowdown in Catalysts momentum. Reported EBITDA margin is expected to improve to around 15 %. This includes the impact of the proposed acquisition of Lucas Meyer Cosmetics and a sunliquid(R) restructuring/exceptional impact of up to CHF 30 million, which was originally expected in Q4 2023. Clariant also expects operational sunliquid(R) costs of up to CHF 15 million related to preparation for the closure or divestment of the Podari plant. EBITDA margin excluding the operational and exceptional sunliquid(R) impacts is expected at around 16 %. Cost savings benefits from restructuring programs are expected to deliver CHF 25 million in 2024.

At its Capital Market Day in November 2021, Clariant set medium-term 2025 targets for the Group of profitable sales growth (4 % -- 6 % CAGR), reported EBITDA margin between 19 % -- 21 %, and free cash flow conversion of around 40 %. Given the impact of the expected continuation of the challenging macroeconomic environment, Clariant now expects 2025 to be a year of continued, albeit significant, recovery in profitability. In 2025, on the basis of an expected 3 % -- 5 % improvement in key end market demand, Clariant expects to achieve EBITDA margin of 17 % -- 18 %, in line with current consensus forecasts.(2) Free cash flow conversion is expected at the targeted level of around 40 % in 2025. Clariant remains committed to its medium-term targets as end markets recover and growth normalizes over the next two to three years. Clariant will adopt an agile response to the economic environment and remain resolute in its plans to achieve the medium-term targets. The company is well positioned to achieve these targets as the accretive impacts of the Lucas Meyer Cosmetics acquisition and investments in China are realized. In addition, benefits from cost savings are expected.

2) Vara Consensus as of 22 January 2024

Fourth Quarter 2023 Group Discussion

MUTTENZ, 29 FEBRUARY 2024

Clariant, a sustainability-focused specialty chemical company, today announced fourth quarter 2023 sales of CHF 1.062 billion, down 10 % organically in local currency(1) and 14 % including scope in local currency (20 % in Swiss francs) versus Q4 2022. Pricing decreased by 4 % year-on-year and volumes by 6 %. Changes in scope had a net negative impact of 4 % due to the divestments of the North American Land Oil and Quats businesses, partially offset by the acquisition of the US Attapulgite business. The net impact from hyperinflation in Argentina and Türkiye was -- 1%. On a sequential basis, sales in Q4 2023 increased by 4 % in local currency compared to Q3 2023. Volumes improved by 5 % organically at the Group level, compensating for slightly lower pricing.

Care Chemicals sales decreased by 17 % in local currency (9 % related to scope) versus Q4 2022. Sales in Mining Solutions and Oil Services grew organically, while the seasonal aviation business declined, due to less favorable weather and lower formula-based prices. Catalysts sales declined 10 % in local currency against the very strong comparable base of last year, while Specialties sales were stable. Adsorbents & Additives sales decreased by 11 % in local currency due to continued challenges in key end markets for Additives.

In the fourth quarter, local currency sales were down 13 % (2 % related to scope) versus Q4 2022 in Europe, Middle East, and Africa as Catalysts growth in the Middle East only partially offset lower sales in both Care Chemicals (partly attributable to the divestment of the Quats business) and Adsorbents & Additives. Sales in the Americas decreased by 21 % (10 % related to scope), predominantly due to the net negative impact of the divestment of the North America Land Oil business and despite the acquisition of the US Attapulgite business. Sales in Asia-Pacific were down 9 % (2 % related to scope), including a 22 % decline in China, as Catalysts sales in Propylene and Ethylene were below the very strong comparison base of last year.

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