3 Investments

Companies in which DSM-Firmenich AG holds an investment are valued at acquisition cost less adjustments for impairment of value. The investments consist of the direct equity share in DSM B.V., Firmenich International SA and DSM-Firmenich Reinsurance AG. In 2025, DSM-Firmenich AG contributed €750 million (CHF 699 million) to the capital contribution reserves of Firmenich International SA. End of the year 2025, the Company held 100% of the aggregate issued and outstanding share capital of DSM B.V., Firmenich International SA, and DSM-Firmenich Reinsurance AG (formerly DSM Re Switzerland AG renamed in 2025).

In 2024, DSM-Firmenich AG acquired DSM Re Switzerland AG (€8.1 million / CHF 7.7 million) and Bergere Limited (€0.6 million / CHF 0.6 million) from subsidiaries of the Group. Subsequently, Bergere Limited was merged with and into DSM Re Switzerland AG. A review for impairment was performed based on current market considerations, assessing whether market expectations on delivering the merger results of the initial deal closed in May 2023 significantly changed until December 31, 2025.

The carrying amount of €33 billion (CHF 31 billion) as at December 31, 2025, represents the recoverable amount of investments held by DSM-Firmenich AG. This recoverable amount has been determined with the Discounted Cash flows (DCF) method based on key value drivers derived from the Long-Range Plan (LRP) for the Company, excluding the ANH business. For the ANH business, the expected proceeds amount less cost of disposal has been used as the recoverable amount, as a Share Purchase Agreement has been signed with a third party. Following the impairment review performed as at December 31, 2025, an impairment loss of €2.6 billion (CHF 2.4 billion) has been recognized.

The investments, DSM B.V. and Firmenich International SA, were transferred into DSM-Firmenich AG in the context of the dsm-firmenich merger in 2023. The total carrying amount of these investments, before recognition of the impairment loss in 2025, represents the equity value of the Company at the merger date in 2023. The review for impairment has therefore been performed at an aggregated level and the impairment loss recognized in 2025 allocated to the carrying amount of total investments held as at December 31, 2025.