Carrying value of Investments in Group companies Key audit matter How the scope of our audit responded to the key audit matter As described in Note 3 to the financial statements, the Company holds investments in Givaudan Group companies with a carrying value of CHF 6,189 million as of 31 December 2021, representing 83% of total assets. Each investment held is valued individually and reviewed annually for impairment. Each investment showing another than temporary impairment indicator must be tested for impairment and an impairment would need to be recorded if the recoverable amount is lower than the carrying value. The impairment test performed by Givaudan management is subject to judgement around the valuation method, key assumptions used and the susceptibility to the expected future market developments that could affect the profitability and positive cash flows of these entities. Accordingly, for the purposes of our audit, we identified judgements and estimates applied by management on the valuation of these investments as representing a key audit matter. We evaluated management’s implementation of accounting policies regarding the valuation of investments in Group companies. We obtained an understanding of internal controls around the valuation of investments in Group companies to determine whether appropriate controls are in place. We challenged the identification of impairment indicators performed by the Company. We tested the valuations by critically assessing the methodology applied and the reasonableness of the underlying assumptions and judgements. We assessed the impairment testing models and calculations by: – checking the arithmetical accuracy of the impairment models and the extraction of inputs from source documents; and – independently deriving the significant inputs and assumptions used in the impairment testing for investments in Givaudan Group companies, such as the ability of the Group companies to generate positive cash flows in the future. We validated the appropriateness and completeness of the related disclosures in Note 3 to the financial statements. Based on the procedures performed, we consider judgements and estimates applied by management on the valuation of investments in Group companies to be reasonable. 115 Givaudan — 2021 Governance, Compensation and Financial Report Governance Report Compensation Report Consolidated Financial Report Statutory Financial Report Appendix