Total net investments in tangible and intangible assets were 3.7% of sales in 2021, compared to 3.4% in 2020. Operating cash flow after net investments was CHF 1,041 million in 2021, versus CHF 972 million in 2020. Free cash flow was CHF 84 million in 2021, versus CHF 811 million for the comparable period in 2020. As a percentage of sales, free cash flow in 2021 was 12.6%, compared to 12.8% in 2020. Financial position Givaudan’s financial position remained solid at the end of the year. Net debt at December 2021 was CHF 4,394 million, compared to CHF 4,040 million at December 2020, with the increase driven by the acquisitions of DDW and Custom Essence. At the end of December 2021 the leverage ratio was 51%, compared to 50% at the end of 2020. The net debt to EBITDA ratio was 2.97, compared to 2.89 at December 2020. Value added statement The value added is defined as the value created by the activities of our business and its employees. Givaudan’s economic value retained of CHF 235 million is the revenue of CHF 6,727 generated less the economic value of CHF 6,492 distributed to stakeholders through operating costs, employee wages and benefits, payments to providers of capitals and taxes. Direct economic value generated and distributed in millions of Swiss francs 4,024 Operating costs Europe 28% 1, 847 Africa and Middle- East 8% 522 North America 27 % 1, 824 Latin America 11% 724 Asia Pacific 25% 1, 687 Switzerland 1% 80 REVENUES 6, 727 1 8 9 Current taxes 6 8 3 Payments to providers of capital 1 , 596 Employee wages and benefits ECONOMIC VALUE RETAINED 235 Group sales per region in millions of Swiss francs ECONOMIC VALUE DISTRIBUTED 6, 492 Givaudan – 2021 Integrated Annual Report 42 Financial value creation Bu siness performance – Group