Consolidated financial statements Consolidated Income Statement For the year ended 31 December in millions of Swiss francs, except for earnings per share data Note 2021 2020 Sales 7 6,684 6,322 Cost of sales (3,829) (3,663) Gross profit 2,855 2,659 as % of sales 42.7% 42.1% Selling, marketing and distribution expenses (921) (848) Research and product development expenses (562) (536) Administration expenses (239) (218) Share of results of joint ventures and associates 10 2 3 Other operating income 11 35 45 Other operating expense 12 (81) (109) Operating income 1,089 996 as % of sales 16.3% 15.8% Financing costs 14 (94) (86) Other financial income (expense), net 15 (30) (34) Income before taxes 965 876 Income taxes 16 (144) (133) Income for the period 821 743 Attribution Income attributable to non-controlling interests – – Income attributable to equity holders of the parent 821 743 as % of sales 12.3% 11.8% Earnings per share − basic (CHF) 17 89.03 80.59 Earnings per share − diluted (CHF) 17 88.37 79.96 The notes on pages 46 to 97 form an integral part of these financial statements. Consolidated Statement of Comprehensive Income For the year ended 31 December in millions of Swiss francs Note 2021 2020 Income for the period 821 743 Items that may be reclassified to the income statement Cash flow hedges Movement in fair value, net 54 (51) Gains (losses) removed from equity and recognised in the consolidated income statement 9 6 Movement on income tax 16 (4) 4 Exchange differences arising on translation of for- eign operations Movement in fair value arising on hedging instruments of the net assets in foreign operations 42 58 Currency translation differences (31) (385) Movement on income tax 16 (2) 5 Items that will not be reclassified to the income statement Defined benefit pension plans Remeasurement gains (losses) of post-employment benefit obligations 8 222 46 Movement on income tax 16 (40) (5) Other comprehensive income for the period 250 (322) Total comprehensive income for the period 1,071 421 Attribution Total comprehensive income attributable to non-controlling interests – – Total comprehensive income attributable to equity holders of the parent 1,071 421 The notes on pages 46 to 97 form an integral part of these financial statements. 42 Givaudan — 2021 Governance, Compensation and Financial Report Governance Report Compensation Report Consolidated Financial Report Statutory Financial Report Appendix