Consolidated Statement of Cash Flows For the year ended 31 December in millions of Swiss francs Note 2021 2020 Income for the period 821 743 Income tax expense 16 144 133 Interest expense 14 86 80 Non-operating income and expense 14, 15 38 40 Operating income 1,089 996 Depreciation of property, plant and equipment 21 204 201 Amortisation of intangible assets 22 186 187 Impairment of long-lived assets 21, 22 3 13 Other non-cash items - share-based payments 67 56 - pension expense 8 45 49 - additional and unused provisions, net 25 18 20 - other non-cash items (5) (18) Adjustments for non-cash items 518 508 (Increase) decrease in inventories (165) (68) (Increase) decrease in accounts receivable (93) (76) (Increase) decrease in other current assets (15) (19) Increase (decrease) in accounts payable 167 27 Increase (decrease) in other current liabilities 10 2 (Increase) decrease in working capital (96) (134) Income taxes paid (153) (125) Pension contributions paid 8 (53) (40) Provisions used 25 (17) (16) Cash flows from (for) operating activities a 1,288 1,189 The notes on pages 46 to 97 form an integral part of these financial statements. in millions of Swiss francs Note 2021 2020 Increase in long-term debt 24 316 1,405 (Decrease) in long-term debt 24 (14) (784) Increase in short-term debt 24 1,514 3,044 (Decrease) in short-term debt 24 (1,510) (3,300) Cash flows from debt, net 306 365 Interest paid 24 (72) (53) Purchase and sale of derivative financial instruments, net 24 (26) (19) Lease payments 24 (57) (52) Transactions of non-controlling interest (6) (7) Other, net 24 (5) (9) Cash flows from financial liabilities 140 225 Distribution to the shareholders paid 27 (589) (571) Purchase and sale of own equity instruments, net a (69) (56) Cash flows from (for) financing activities a (518) (402) Acquisition of property, plant and equipment 21 (186) (188) Acquisition of intangible assets 22 (70) (39) Acquisition of subsidiaries, net of cash acquired 6 (401) (629) Proceeds from the disposal of property, plant and equipment 21 9 8 Proceeds from sales of intangible assets 22 2 Interest received 8 3 Dividend received from joint ventures and associates 1 1 Purchase and sale of financial assets at fair value through income statement, net 6 (92) (3) Impact of financial transactions on investing, net (27) 25 Other, net (149) 1 Cash flows from (for) investing activities (907) (819) Net increase (decrease) in cash and cash equivalents (137) (32) Net effect of currency translation on cash and cash equivalents (1) (9) Cash and cash equivalents at the beginning of the period 18 411 452 Cash and cash equivalents at the end of the period 18 273 411 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. 45 Givaudan — 2021 Governance, Compensation and Financial Report Governance Report Compensation Report Consolidated Financial Report Statutory Financial Report Appendix Consolidated financial statements