2023 Governance, Compensation and Financial Report

2023Governance,CompensationandFinancialReport Givaudanataglance Oursizeandoperationalfootprintgiveusuniqueexposuretoavarietyofmarkets. Wecontinuetoinvestwithadditionaltalentandnewfacilitiestoservicethewidediversityofourcustomers. NorthAmericaEurope,AfricaandMiddleEast 24% ofsales 18% ofemployees 22 sites 39% ofsales 46% ofemployees 78 sites LatinAmericaAsiaPacific 12% ofsales 14% ofemployees 17 sites 25% ofsales 22% ofemployees 46 sites 78 productionsites 64 creation&researchcentres >16,260 full-timeemployees 124,120 productssold 44% global Ourcustomers: 56% localandregional Tableofcontents GovernanceReport Ensuringproperchecksandbalances5 Groupstructureandshareholders6 Capitalstructure7 BoardofDirectors9 ExecutiveCommittee21 Compensation,shareholdings andloans25 Shareholders′participation26 Changeofcontroland defencemeasures27 Auditors28 Informationpolicy29 Quietperiods30 CompensationReport Reflectingbusinessandindividualperformance32 Compensationgovernance33 Compensationprinciples35 CompensationofGivaudanexecutives37 Compensationofthe ExecutiveCommittee43 CompensationoftheBoardofDirectors45 Shareownership47 Externalmandates48 Reportofthestatutoryauditor50 FinancialReport ConsolidatedFinancialReport54 Consolidatedfinancialstatements55 Notestotheconsolidated financialstatements59 ReportoftheStatutoryAuditor111 Statutoryfinancialreport116 StatutoryfinancialstatementsofGivaudanSA (GroupHoldingCompany)117 Notestothestatutory financialstatements118 Appropriationofavailableearnings125 ReportoftheStatutoryAuditor126 Appendix Alternativeperformancemeasures131 Givaudanregisteredoffices133 Ourreportingsuite141 GovernanceReport CompensationReport FinancialReport Appendix GovernanceReport 5Ensuringproperchecksandbalances 6Groupstructureandshareholders 7Capitalstructure 9BoardofDirectors 21ExecutiveCommittee 25Compensation,shareholdingsandloans 26Shareholders'participation 27Changeofcontrolanddefencemeasures 28Auditors 29Informationpolicy 30Quietperiods Givaudan–2023Governance,CompensationandFinancialReport4 GovernanceReport Ensuringproperchecksandbalances CompensationReport FinancialReport Appendix Ensuringproperchecksandbalances Wetakeprideinourtransparentgovernance,whichensureswemanageandsuperviseouroperationsinaresponsibleway.OurstructuresandprocessesforthedirectionandcontrolofourCompanysupportacontinuedfocusonvaluecreationforallourstakeholders. ThisGovernancereportisalignedwithinternationalstandardsandhasbeenpreparedinaccordancewiththe‘SwissCodeofObligations’,the‘DirectiveonInformationRelatingtoCorporateGovernance’issuedbytheSIXExchangeRegulationandthe‘SwissCodeofBestPracticeforCorporateGovernance’issuedbyeconomiesuisse. OursolidgovernanceisanimportantfoundationforGivaudan'sbusinessandenablesustodeliveronourpurpose,strategyandperformance. CalvinGrieder,Chairman TheinternalcorporategovernanceframeworkisbasedonGivaudanSA'sArticlesofIncorporation.The‘BoardRegulationsofGivaudanSA’,theCompany'sorganisationalregulation,furtherclarifytheduties,powersandregulationsofthegoverningbodiesoftheCompany. Exceptwhereotherwiseprovidedbylaw,theArticlesofIncorporationandGivaudan'sBoardRegulations,allareasofmanagementarefullydelegatedbytheBoardofDirectors,withthepowerto sub-delegate,totheChiefExecutiveOfficer,theExecutiveCommitteeanditsmembers.TheBoardRegulationsofGivaudanalsospecifythedutiesandthefunctioningoftheBoard'sfourcommittees. DOWNLOAD www.givaudan.com›Ourcompany›Responsiblebusiness›Positionstatements,policies,rules,reports›under‘Rules’:ArticlesofIncorporation,BoardRegulationsofGivaudanandotherdocumentationregardingGivaudan'sprinciplesofcorporategovernance GovernanceReport Groupstructureandshareholders CompensationReport FinancialReport Appendix Groupstructureandshareholders 1.1Groupstructure 1.1.1Descriptionoftheissuer'soperationalGroupstructureGivaudanSA,theparentcompanyoftheGivaudanGroup,withitsregisteredcorporateheadquartersat5ChemindelaParfumerie,1214Vernier,Switzerland(‘theCompany’),isa‘sociétéanonyme’,pursuanttoart.620etseq.oftheSwissCodeofObligations.ItislistedontheSIXSwissExchangeundersecuritynumber1064593,ISINCH0010645932. TheCompanyisagloballeaderinitsindustry.Givaudanoperatesaroundtheworldandhastwoprincipalbusinesses:Taste&WellbeingandFragrance&Beauty,providingcustomerswithcompounds,ingredientsandintegratedsolutions.Taste&Wellbeingconsistsoffourbusinessunits:Dairy,Sweetgoods,BeveragesandSavoury.Fragrance&Beautyalsohasfourbusinessunits:Consumerproducts;Finefragrances;FragranceingredientsandActiveBeauty. Bothdivisionshaveasalesandmarketingpresenceinallmajorcountriesandmarketsaswellasscienceandtechnologyorganisations.Theyshareresourcesandknowledgeintheareasofresearchandmarket&consumeranalysis,whereapplicable.CorporatefunctionsincludeFinance,Procurement,HumanResources (HR),Legal,Ethics&Compliance,EnterpriseRiskManagement,EnvironmentHealth&Safety(EHS)andCommunicationsaswellasGivaudanBusinessSolutions(GBS)andInternalAudit.GBSprovidesinternalend-to-endprocessesandservicesintheareasofFinance,Controlling,HR