1.Principles

1.1General aspects

These financial statements were prepared according to the provisions of the Swiss Law on Accounting and Financial Reporting (32^nd title of the Swiss Code of Obligations).

Where not prescribed by law, the significant accounting and valuation principles applied are described below.

1.2Securities listed on a stock exchange

Securities with a short-term holding period are valued at their quoted market price as at the balance sheet date. A valuation adjustment reserve has not been accounted for.

1.3Financial assets

Financial assets include long-term loans and investments. Loans granted in foreign currencies are translated at the rate at the balance sheet date, whereby unrealised losses are recorded but unrealised profits are not recognised (imparity principle).

1.4Non-current interest-bearing debts

Interest-bearing debts are recognised in the balance sheet at nominal value.

1.5Foregoing a cash flow statement and additional disclosures in the Notes

As Emmi AG has prepared its consolidated financial statements in accordance with a recognised accounting standard (Swiss GAAP FER), it was decided not to present additional information on interest-bearing liabilities and audit fees in the Notes as well as a cash flow statement, in accordance with the law.

2.Information on balance sheet and income statement items

2.1Income from investments

This position includes dividend income from investments.

2.2Other financial income

Other financial income mainly comprises foreign currency gains and interest income on loans granted to companies in which the entity holds an investment.

2.3Financial expenses

Financial expenses mainly comprise foreign currency losses and interest expenses.

2.4Other operating expenses

The decrease in Other operating expenses is due to the loss on the sale of the majority stake in Lácteos Caprinos S.A. in the previous year.

2.5Investments

The above-mentioned investments are directly held by Emmi AG. Investments which are indirectly held by Emmi AG are mentioned in note 31 of the consolidated financial statements.

2.6Share capital and significant shareholders

The share capital of KCHF 53,498 as at 31 December 2021 consists of 5,349,810 registered shares with a nominal value of CHF 10 (unchanged on the previous year).

1,072,536 shares or 20.0% were not registered as at 31 December 2021 (previous year: 1,045,887 shares not registered or 19.5%).

The following significant shareholders with more than three percent of voting rights are known to the company:

As at 7 June 2016, Capital Group Companies, Inc., Los Angeles, US, informed us that it owned 268,500 registered shares of Emmi AG (5.019%). No further disclosure notifications have been made since.

As at 31 December 2021, Emmi Wohlfahrtsfonds (welfare fund) owned a total of 6,000 shares of Emmi AG (unchanged on the previous year).

2.7Capital contribution reserve

The capital contribution reserve results from capital contribution payments above the nominal amount during past years.

3.Other disclosures

3.1Full-time equivalents

In 2021 and in the previous year, Emmi AG employed fewer than 10 employees on average.

3.2Collateral provided for liabilities of third parties

3.3Contingent liabilities

Emmi AG is jointly and severally liable for the VAT liabilities of the other Swiss-domiciled Emmi companies and of the Central Switzerland Milk Producers Cooperative (ZMP) and ZMP Invest AG.

3.4Net release of hidden reserves

In the year under review, there were no releases of hidden reserves (previous year: KCHF 41).

3.5Participations of members of the Board of Directors, the Council and Group Management

As at 31 December 2021, individual members of the Board of Directors, the Agricultural Council and Group Management (including affiliated persons) held the following number of shares in the company:

The members of the Board of Directors, the Agricultural Council and the Group Management own a total of 2,272 shares (previous year: 2,492 shares) and thus hold 0.04% of the voting rights.

3.6Significant events after the balance sheet date

From the balance sheet date until the financial statements were approved by the Board of Directors on 3 March 2022, no other major events occurred which could have adversely affected the validity of the financial statements for 2021 or which would have to be disclosed.