Free Cash Flow (FCF) FCF refers to operating cash flow after net investments, interest paid, lease payments and purchase and sale of own equity instruments. In millions of Swiss francs 2021 2020 Cash flows from (for) operating activities 1,288 1,189 Acquisition of property, plant and equipment (186) (188) Proceeds from the disposal of property, plant and equipment 9 8 Acquisition of intangible assets (70) (39) Proceeds from the disposal of intangible assets 2 Interest paid (72) (53) Lease payments (57) (52) Purchase and sale of own equity instruments, net a (69) (56) Free cash flow (FCF) 843 811 Sales 6,684 6,322 Free cash flow (FCF) as a % of sales 12.6% 12.8% a) After careful consideration with the Group auditors, the Group has determined that purchase and sale of own equity instruments relates to financing activities and has been reclassified from cash flows from (for) operating activities into cash flows from (for) financing activities. The Group has updated its definition of FCF to reflect this change. Leverage Ratio Leverage ratio is defined as net debt divided by the sum of net debt and equity (as defined for leverage ratio in the table below). In millions of Swiss francs 31 December 2021 31 December 2020 Short-term debt 428 206 Long-term debt 4,239 4,245 Less: cash and cash equivalents (273) (411) Net debt 4,394 4,040 Total equity attributable to equity holders of the parent 3,929 3,490 Remeasurement of post-employment benefit obligations 302 484 Equity (as defined for leverage ratio) 4,231 3,974 Net debt and equity (as defined for leverage ratio) 8,625 8,014 Leverage ratio 51% 50% Net debt to EBITDA Ratio The Net debt to EBITDA ratio is calculated as follows: In millions of Swiss francs 31 December 2021 31 December 2020 Short-term debt 428 206 Long-term debt 4,239 4,245 Less: cash and cash equivalents (273) (411) Net debt 4,394 4,040 EBITDA 1,482 1,397 Net debt to EBITDA ratio 2.97 2.89 Comparable EBITDA 1,504 1,442 Net debt to Comparable EBITDA ratio 2.92 2.80 Alternative performance measures 119 Givaudan — 2021 Governance, Compensation and Financial Report Governance Report Compensation Report Consolidated Financial Report Statutory Financial Report Appendix