Custom Essence On 3 December 2021 Givaudan acquired 100% of the share capital of Custom Essence, a US based fragrance creation house, for a purchase price of CHF 247 million (USD 268 million). Founded in 1981, Custom Essence is a family owned business based in New Jersey, USA. They specialise in the formulation of natural fragrances and create perfumes across categories for both local and regional and for larger customers. The company employs 70 people globally. The identifiable assets and liabilities of Custom Essence acquired are recorded at fair value at the date of acquisition. Total net assets acquired of CHF 118 million consist of cash (CHF 7 million), working capital (CHF  10  million), fixed assets (CHF  1  million), intangible assets which are comprised of process knowledge, client relationships and brand name (CHF  101  million) and other liabilities (CHF 1 million). The total purchase price of CHF 247 million and the acquisition results in goodwill of CHF  129  million which relates mainly to the value of the qualified workforce and expected synergies that do not meet the criteria for recognition as separable intangible assets. Due to the timing of the acquisition, the determination of the fair values of the identifiable assets and liabilities acquired is based on a provisional approach considering judgements and assumptions as at 31 December 2021, as not all information with respect to the timing and amount of future revenues and expenses associated with the assets, particularly intangible assets, and liabilities, is available at this point in time. Therefore, and in compliance with IFRS 3, these fair values determined are provisional and the Group has twelve months from the date of acquisition to adjust these provisional fair values and to finalise the purchase price allocation. DDW On 8 December 2021 Givaudan acquired 100% of the share capital of DDW, The Color House, a US based natural colour company, for a purchase price of CHF 214 million (USD 232 million). Headquartered in Louisville, Kentucky, USA, DDW is a leading privately-held company in the natural colour industry, with 12 manufacturing facilities around the world and 315 employees. Founded in 1865, the company has developed a strong market position from its origins in the brewing industry through its market leading capabilities in caramel colours and for the last 20 years having a strong focus on natural colours for the food and beverage industry. The identifiable assets and liabilities of DDW acquired are recorded at fair value at the date of acquisition. Total net assets acquired of CHF 126 million consist of cash (CHF 9 million), working capital (CHF 24 million), other short term assets (CHF 1 million), fixed assets (CHF 24 million), intangible assets which are comprised of process knowledge, client relationships and brand name (CHF  121  million), other long term assets (CHF  12 million), short-term loans and bank loans (CHF 33 million) and other liabilities (CHF 32 million). From the total purchase price of CHF 214 million, CHF 169 million was settled in cash at the closing date, whilst the remainder will be settled in cash after a period of three years from the date of acquisition and will be subject to adjustment based on agreed performance criteria. The total acquisition results in goodwill of CHF 88 million which relates mainly to the value of the qualified workforce and expected synergies that do not meet the criteria for recognition as separable intangible assets. Due to the timing of the acquisition, the determination of the fair values of the identifiable assets and liabilities acquired is based on a provisional approach considering judgements and assumptions as at 31 December 2021, as not all information with respect to the timing and amount of future revenues and expenses associated with the assets, particularly intangible assets, and liabilities, is available at this point in time. Therefore, and in compliance with IFRS 3, these fair values determined are provisional and the Group has twelve months from the date of acquisition to adjust these provisional fair values and to finalise the purchase price allocation. Acquisitions 2020 During the year Givaudan made three acquisitions, Ungerer, the cosmetics business of Indena and Alderys. Ungerer On 20 February 2020 Givaudan acquired 100% of the share capital of Ungerer and its affiliates for a purchase price of CHF 676 million (USD 688 million). Headquartered in New Jersey, USA, Ungerer is a leading independent company in the flavour and fragrance specialty ingredients business, most notably in essential oils, which provides a rich palette of predominantly natural ingredients for flavour and fragrance creation, as well as for end customers of such specialties. Ungerer also has an impressive local and regional customer presence for both flavours and fragrances in North America. Founded more than 125 years ago, Ungerer has developed a strong market position in all segments and a high quality reputation with its customer base. With a presence in more than 60 countries, a total of eight manufacturing facilities and six R&D centres, Ungerer’s capabilities and its 650 employees will further extend Givaudan’s market leadership in its core flavour and fragrance activities. 68 Givaudan — 2021 Governance, Compensation and Financial Report Governance Report Compensation Report Consolidated Financial Report Statutory Financial Report Appendix Notes to the consolidated financial statements