Mandate and term of office
KPMG AG was appointed by the 2024 Annual General Meeting (AGM) as Group and statutory auditors of DSM-Firmenich AG for the financial year 2024. The responsible licensed audit experts are Petra Groenland-van der Linden and Carlos Alvarez, with Petra Groenland-van der Linden as auditor in charge. The Audit & Risk Committee and the Board of Directors reconsider on an annual basis whether the external auditors should be proposed for re-election to the General Meeting.
Auditing fees
The auditing fees paid to KPMG in its capacity as the Company’s statutory and Group auditor for the 2024 Consolidated Financial Statements amount to €10,831,000, including fees for services related to the review of non-financial information. In addition, KPMG provided audit and assurance services amounting to €2,153,000, non-audit services amounting to €206,000 for tax services, and €128,000 for other various non-audit services. The scope of the audit of the 2024 Consolidated Financial Statements and respective audit fees were approved by the Audit & Risk Committee and defined in an engagement and fee letter signed by the CEO and CFO. All other services were pre-approved in accordance with applicable internal policies.
Information to the Audit & Risk Committee
KPMG attended eight Audit & Risk Committee meetings held in 2024, including three private sessions without the presence of management. The lead auditor and the Chair of the Audit & Risk Committee meet prior to each Audit & Risk Committee to prepare the meeting.
Auditor rotation
The audit rules of the European Union require DSM B.V. (a directly and wholly owned affiliate of DSM-Firmenich AG) to rotate its external auditor for the financial year 2025. This rotation concurrently requires a rotation of the DSM-Firmenich AG statutory and Group auditor in 2025, as a major part of the Group’s business is represented in the entities held directly or indirectly by DSM B.V. In view of these requirements, the Audit & Risk Committee initiated an auditor selection process in the third quarter of 2023 and mandated a Selection Committee to conduct a tender process.
The Selection Committee consisted of the Chair of the Audit & Risk Committee, the CEO, and the CFO. The Selection Committee oversaw the execution of the tender process, which was performed by a tender team consisting of employees from the Finance and Procurement teams. The amended Audit Directive (2014/56/EU) and the Audit Regulation (537/2014/EU) of the European Union, which prescribe specific requirements on the appointment of statutory auditors or audit firms, were considered in the audit tender process.
In addition, the Selection Committee considered the report of the Dutch Authority for the Financial Markets (AFM) published in February 2021, which provides recommendations on external auditor selection. The auditor selection criteria which were validated by the Audit & Risk Committee, emphasize the requirements for independence, the ability to provide financial and non-financial assurance, global footprint, quality ratings, and an excellent professional knowledge network of IT, systems processes and controls.
In February 2024, considering the results of the audit tender process and the recommendation of the Selection Committee, the Audit & Risk Committee recommended to the Board of Directors the appointment of PricewaterhouseCoopers AG as external Group and statutory auditors starting from the financial year 2025. The Board of Directors approved the recommendation subject to the powers of the General Meeting. Further details on the auditor selection process were shared in the invitation to the 2024 AGM which can be found here.
At the AGM that will be held on 6 May 2025, the Board of Directors will propose the election of PricewaterhouseCoopers AG (PwC) as external statutory auditor for the financial year 2025. Subject to its election at the AGM, PwC will provide financial and non-financial audit services to the Company. PwC has confirmed that it meets all independence requirements to carry out the audit mandate. The designated responsible Auditor in charge will be Christopher Vohrer, and Ennèl van Eeden will serve as the Global Client Service Partner.