Corporate Activities

Reporting period

The Corporate activities section includes information from the combined entity for 12 months, which includes Firmenich as of 1 January 2023 (pro forma, see Concepts and ratios). It also includes information that is presented in accordance with IFRS, which includes Firmenich from the merger date onwards.

Any consolidated activities within continuing operations that are outside the four Business Units are reported as Corporate activities. These comprise operating and service activities, as well as a number of costs that cannot be allocated directly to the Business Units. While this segment reports net sales to third parties from its service units, it normally has a negative operating result.

Corporate activities include various holding companies, regional holdings and corporate overheads. The most significant cost elements are corporate departments and the share-based compensation for the company.

x € million


Pro forma








Adjusted EBITDA






We retain a limited part of our material damage, business interruption, (product) liability and other risks via our captive insurance companies. In 2023, the total retained damages were €25 million (2022: €15 million).

Corporate research

We centrally invest in a focused number of clearly defined disruptive technology platforms, managed by our Senior Science Fellows, through which we aim to create greater differentiation over the long-term. These underpin early-stage innovation projects that are co-funded with the relevant business, following the principles of co-leadership, milestone-based funding, and assumption-based working, in order to provide market-ready scientific breakthroughs in the future.

Share-based payments

Executives participate in the Long-Term Incentive (LTI) scheme. This links their compensation to the long-term interests of our company’s stakeholders. It also provides a vehicle for the attraction and retention of suitable employees.

As shares/share units have become more prevalent in the market, we replaced stock options with shares/share units in 2017. This resulted in better alignment with the LTI vehicle already in place for the Board of Directors and the Executive Committee. The use of shares/share units also targets yet closer alignment with the interests of our stakeholders. For detailed information, see Note 27 Share-based compensation to the Consolidated financial statements.

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