Changes in the fair value of the plan assets are as follows: in millions of Swiss francs 2021 2020 Pension Plans Non- pension Plans Tot al Pension Plans Non- pension Plans Tot al Balance as at 1 January 1,917 – 1,917 1,783 1,783 Amounts recognised in the income statement Interest income 16 16 21 21 Amounts recognised in the other comprehensive income Return on plan assets less interest on plan assets 109 109 189 189 Employer contributions 49 4 53 37 3 40 Employee contributions 17 17 14 14 Benefit payments (85) (4) (89) (77) (3) (80) Settlements (12) (12) Acquisitions 2 2 Currency translation effects (2) – (2) (40) – (40) Balance as at 31 December 2,021 – 2,021 1,917 – 1,917 Plan assets are comprised as follows: in millions of Swiss francs 2021 2020 Debt 417 20% 568 30% Equity 539 27% 326 17% Property 340 17% 335 17% Insurances policies and other 725 36% 688 36% Total 2,021 100% 1,917 100% The investment strategies are diversified within the respective statutory requirements of each country providing long-term returns with an acceptable level of risk. The plan assets are primarily quoted in an active market with exception of the property and insurance policies. The plan assets do not include Givaudan registered shares. They do not include any property occupied by, or other assets used by the Group. The Group operates defined benefit plans in many countries for which the actuarial assumptions vary based on local economic and social conditions. The assumptions used in the actuarial valuations of the most significant defined benefit plans, in countries with stable currencies and interest rates, are as follows: Weighted percentage 2021 2020 Discount rates 1.2% 0.9% Projected rates of remuneration growth 1.1% 1.1% Future pension increases 0.5% 0.5% The overall discount rate and the overall projected rates of remuneration growth are calculated by weighting the individual rates in accordance with the defined benefit obligation of the plans. Sensitivity analysis The defined benefit obligations are calculated on the basis of various financial and demographic assumptions. The below information quantifies the consequences of a change in some key assumptions. The effects ((gain)/loss) of the change in assumptions are as follows: in millions of Swiss francs Change in assumption Effects of the change Increase in assumption Decrease in assumption Discount rate a 0.5% on the current service cost (6) 7 on the defined benefit obligation (179) 199 Salary increases 0.5% on the current service cost 2 (1) on the defined benefit obligation 12 (12) Pension increases 0.5% on the current service cost 4 – on the defined benefit obligation 149 (38) Life expectancy 1 year on the current service cost – – on the defined benefit obligation 48 (49) a) The pension plan fiduciaries or trustees, as each situation dictates, may use various strategies which employ financial instruments to mitigate the impact of changes in the discount rate assumptions on the actual pension plan liabilities through corresponding changes in the plan assets. For the year end 2021, and considering the illustrative impact of changes in discount rates on the defined benefit obligation shown above, the use of these strategies is estimated to result in offsetting changes in the value of the assets between minus CHF 85 million and plus CHF 93 million for a plus and minus 50 basis point change in interest rates respectively. Governance Report Compensation Report Consolidated Financial Report Statutory Financial Report Appendix 74 Givaudan — 2021 Governance, Compensation and Financial Report Notes to the consolidated financial statements